The Senate, 10 December 2014 Report of the Vice-Chancellor

EXECUTIVE SUMMARY This paper presents a summary of key background information on recent developments, and is based on the Vice-Chancellor’s report to Council on 13 October. The Vice-Chancellor will introduce the report at the meeting and will provide members of the Senate with the opportunity to raise questions on any aspect of the report.

1. EXTERNAL ENVIRONMENT 1.1 HE policies beyond the general election . The Social Market Foundation published in August a new pamphlet, Robbins Rebooted, by Liam Byrne, Labour’s Shadow Higher Education Minister. The title is a nod to the Robbins report of 1963, but additionally signals a riposte to David Willetts’s Robbins Revisited pamphlet from October 2013, and sets out five main ideas: o ‘Technical Universities’, a collaboration of employers, major university science and engineering departments and colleges, offering students the chance to study a new ‘earn while you learn’ ‘Technical Degree’. o Developing greater links between colleges and universities based on the US-style community college movement. o Reform of research funding to support British universities in creating global ‘Star Alliances’ of the world’s best scientists with longer term research support. o A big increase in university enterprise zones to better link universities to regional growth. o Expanding access to HE, with a new national advice service to support young people into higher academic and technical education, support for university-school trusts, an expansion of the Open University’s MOOCs and a new partnership between the Workers’ Educational Association and UnionLearn. The pamphlet proposes an expansion of alternative pathways through HE and drew on confidential input on this matter by the Vice-Chancellors of Sheffield and Warwick, who were described as leading the way in this area, in particular high quality provision in a world-class research environment. http://www.smf.co.uk/publications/robbins-rebooted-how-we-earn-our-way-in-the-second-machine-age/ . In an interview with the Guardian Liam Byrne outlined the policy direction of the Labour Party going in to the next election. He stated that ‘the direction of travel is putting fees down to £6,000, not putting them up’; however he clarified that this was not a firm policy. He also praised the idea of linking industry and study – and mentioned the University– saying that a Labour government would expand degrees co-financed between the government and employers, allowing students to obtain qualifications while remaining debt-free. http://www.theguardian.com/higher-education-network/2014/aug/28/liam-byrne-higher-education-

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policy-reforms . The Conservatives and Liberal Democrats have also spoken of their support for a major increase in advanced vocational and technical education, including to degree level and beyond, and are citing the University's AMRC Training Centre as an exemplar. HEFCE is working with the University to design pilot programmes which could form a model, linked to company funding and the AMRC and Nuclear AMRC Catapult centres. . Former HE Minister David Willetts has revealed that the Conservative Party is considering allowing top universities to charge higher fees in return for taking on student loan debts. Under this proposed system, graduates earning over £21,000 a year would repay their student loans to their alma mater rather than the Treasury. http://www.independent.co.uk/news/education/education-news/oxbridge-could-charge-16000-in-tuition- fees-under-new-government-plans-9647490.html . The Liberal Democrats have committed to ring-fencing the current science research budget if part of government following next May's election. They have also pledged a further £100m of funding for the Catapult programme, ahead of the opening of two more in energy systems and precision medicine next year. http://www.timeshighereducation.co.uk/news/lib-dems-to-offer-science-ring-fence-pledge/2015311.article 1.2 OECD report, 9 September 2014 . The OECD has published ‘Education at a Glance 2014: OECD Indicators’. It finds that access to education continues to expand, but that the benefits of expanded access are not being shared equitably. http://www.oecd.org/edu/Education-at-a-Glance-2014.pdf . Findings from the report indicate that 55% of young adults in the UK will take a degree before they reach 25, compared with 39% in France and 53% in the US. They reflect projections by the government-backed UK Commission for Employment and Skills (UKCES). But UKCES also warns that the skills of these graduates could go to waste unless more is done to create good jobs for young people, and prepare young people to take those jobs. . The report shows that UK spending per student in tertiary education in 2011 was $14,000 – significantly lower than in competitor countries such as the United States ($26,000) and Switzerland ($23,000). It also highlights the importance of tertiary education for social mobility, with data showing that less than 10% of 20 to 34 year-olds where one or more parents did not complete upper secondary education go on to study at degree level. 1.3 UUK annual conference, 9 - 11 September 2014 . The President of Universities UK (UUK), Professor Christopher Snowden, told delegates at UUK’s annual conference that there are three policy issues an incoming government must prioritise if they are to support the university sector: research and innovation; internationalisation and immigration; and student funding. http://www.universitiesuk.ac.uk/highereducation/Pages/StrengthinDiversityConference2014.aspx%20/l%2 0.VBbZCrdOW70 . Also speaking at the conference, new Universities, Science and Cities Minister Greg Clark appeared to rule out any increase in university tuition fees. He said that the current fee regime: ‘broadly covers the cost of education for most courses in most institutions and there are arrangements to support high-cost courses’. He went on to say he is ‘not persuaded’ by the idea of raising fees to meet rising costs. The Minister is in the process of compiling a 10-year strategic review of science and innovation, due to be published at the same time as the Autumn Statement this year. An analysis of his speech by the Higher Education Policy Institute (HEPI) can be found at: http://www.hepi.ac.uk/2014/09/10/30000-15000and-60000-45000/

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1.4 Postgraduate funding . There is a continuing debate around postgraduate funding. A significant proportion of postgraduates do not receive any support for tuition fees or living costs. The University is leading a consortium of universities funded by HEFCE to explore removing barriers to postgraduate education for students from under-represented groups, including financial barriers (see 2.2 below). The government is expected to set out its proposed solution to the acknowledged problems in this year’s Autumn Statement, due on 3 December. http://www.timeshighereducation.co.uk/features/feature-priced-out-of-postgraduate- education/2015722.article 1.5 Widening participation . Greg Clark, the Universities, Science and Cities Minister, says extra effort should be made to get more teenagers into HE in some towns and cities where entry rates are just a quarter of those in other areas. He said the ‘opportunity gap’ between areas had been narrowed in recent years but was still too wide. http://www.telegraph.co.uk/education/educationnews/11031738/Minister-action-needed-to-eradicate- university-black-holes.html 1.6 International students: net migration targets . Labour has pledged to remove students from net migration figures. In a long-awaited announcement shadow Universities, Science and Skills Minister, Liam Byrne, has confirmed that it would be firm policy of a future Labour government to remove international students from net migration targets. htttp://www.timeshighereducation.co.uk/news/byrne-commits-to-pledge-on-overseas- students/2015713.article . Former Conservative Deputy Prime Minister Michael Heseltine has recently made a similar argument. He said that while controls on immigration are important, international students bring great benefits to the UK, and he believes the public do not view such students as immigrants. http://www.theguardian.com/education/2014/aug/25/heseltine-cut-foreign-students-figures-lower-net- migration-conservatives . According to new research by Universities UK and think-tank British Future, most people are opposed to reducing the number of international students coming to the UK, even if this would make it harder to reduce immigration numbers. International students are the largest group of migrants from outside the EU counted in the government’s net migration figures, representing around a third of all people coming into Britain. Only a fifth (22%) of people polled thought of international students as ‘immigrants’ at all. http://www.universitiesuk.ac.uk/highereducation/Pages/InternationalStudentsUKimmigrationDebate.aspx %20/l%20.VBLl5bdOW70 1.7 The North: city growth, regionalism and devolution . In July David Willetts stepped down as Universities Minister, and Greg Clark became Minister for Universities, Science and Cities. Greg Clark’s brief is wider, with links between his role in devolving power to cities and the role that universities play in their local and regional economies. . In June the Chancellor George Osborne delivered a speech on developing a ‘Northern Powerhouse’ of better connected Northern cities, to be achieved through developments in transport, HE, cultural activity and devolved power to cities. https://www.gov.uk/government/speeches/chancellor-we-need-a-northern-powerhouse . In July Andrew Adonis, Shadow Infrastructure Minister, published a report that argued that government needs to facilitate innovation by promoting higher rates of business and export growth. The report recommended that Local Enterprise Partnerships should be empowered with larger devolved budgets to promote better skills, 3

infrastructure and economic development. http://www.yourbritain.org.uk/uploads/editor/files/Adonis_Review.pdf . In July the Royal Society for the encouragement of Arts, Manufactures and Commerce published a report on encouraging economic growth in cities through skills development. It argued that locally accountable authorities need power to control government spending on skills, and set local labour market policy. http://www.thersa.org/__data/assets/pdf_file/0005/1544891/Human-Capitals-City-Growth- Commission.pdf . In August the think tank Policy Exchange published a report arguing that Northern cities can be technology hubs of the future. The report found that 55% of graduates leave Yorkshire and the Humber and recommended encouraging universities to allow students to retain intellectual property rights for work they undertake at university. The report also argued for elected mayors with devolved economic powers in order to lead growth to northern cities. http://www.policyexchange.org.uk/publications/category/item/silicon-cities-supporting-the-development- of-tech-clusters-outside-london-and-the-south-east-of-england

2. ACADEMIC AND STRATEGIC PLANNING 2.1 Student recruitment for 2014 entry . As at 1 September 2014, the number of expected home undergraduate entrants stands at 4,669, an increase of 229 over the target figure of 4,440. Expected overseas undergraduate applications total 1,175, an increase of 98 over the target figure of 1,077. During Clearing, 473 applicants were accepted, the highest number in recent years, reflecting a continued change in the nature of the clearing process. . As at 1 September 2014, and compared to this point last year, expected postgraduate entrants to taught (PGT) and research (PGR) programmes are as follows: o Home PGT: -2% decrease to 1,042 o Home PGR: -6% decrease to 310 o Overseas PGT: +11% increase to 2,755 o Overseas PGR: +8% increase to 326 . Reporting at this point is always rather provisional until students are registered. Further updates based on confirmed enrolments will follow in subsequent reports. 2.2 Academic strategy . During 2013-14, the University commissioned Professor Sir John Tooke to undertake a review of life sciences with a specific focus on: how translational medical, biomedical and science research could be transformed in order to achieve a strong position for the University in life sciences research in the UK; to examine how the University improves 'basic' life sciences research that influences our ability to deliver world class biomedical science research; and how we improve our research jointly with the NHS. The Vice-Chancellor will be inviting Heads of Department to a conference on the 1 December to provide an update on progress and develop an implementation plan. . The University is in the process of developing and submitting two bids to HEFCE. A bid submitted to the HEFCE STEM Teaching Capital Fund will if successful provide an additional £5m capital funding in 2015-16 for additional equipment in the Diamond building. A bid is being prepared to the HEFCE Catalyst Fund to seek funding for a project to develop alternative progression routes into HE for apprentice engineers. This project will develop a new route for those wishing to progress from their advanced apprenticeship to a Foundation Degree and a Higher Apprenticeship that links into a new Bachelor and Master of Manufacturing Technology, which students will undertake while remaining in employment. The pathway will be offered through a flexible mode of study to meet the needs of employers and apprentices and will deliver a new and innovative curriculum in advanced manufacturing.

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. As we prepare to welcome our 99 Postgraduate Support Scheme Scholars at a reception in November we are with our consortium partners (Leeds, Manchester, Newcastle, Warwick and York) actively making the case nationally with the Minister the Rt. Hon Greg Clark, Sir John O'Reilly (Director General of Knowledge and Innovation at BIS) and Dr Lee Elliot Major (Sutton Trust) for a sustainable postgraduate scholarship scheme with funding, to be part of the new strategy for access and student success that will required by OFFA and HEFCE. 2.3 National university performance metrics / tables . The following table shows the University’s ranking in a number of league tables published since the last meeting of Council: Shanghai Jiao Tong Academic Ranking of World Universities http://www.shanghairanking.com/ 2014: 2013: . The Shanghai Jiao Tong Academic Ranking of World Universities ranks 101-150 101-150 the top 500 world universities and is driven only by research output measures (including Nobel Prize winners, publications and highly cited researchers). . The University fell out of the SHJT top 100 in 2012 and since then has remained in the 101-150 band (outside the top 100; rankings are published in bands). . For the individual measures, Sheffield’s score increased for one measure (publications) but decreased for the remaining five. In particular, there was a decline for the score for Highly Cited researchers (this decline had been predicted prior to publication of the ranking) and a decline for publications in Science and Nature. . This table does not feature highly in sources used by UK/EU undergraduate students to help inform their choice University, but it is more likely to be used in Asia by prospective international students alongside the THE World University Rankings. QS World University Rankings www.topuniversities.com 2014: 2013: . This ranking places emphasis on academic reputation, as measured by a 71st 69th worldwide survey of academics, which contributes to 40% of the overall score. Sheffield's performance increased for this measure as a result of growing worldwide recognition of our impact and contribution. . The University also increased in the staff: student ratio measure. The data used to compile the score for this measure was based on latest available HESA data (2012-13). The improved score is due to increased academic staff numbers following additional recruitment, together with the student recruitment position for 2012. Times Good University Guide www.thesundaytimes.co.uk/sto/University_Guide/ 2014: 2013: . The Times and Sunday Times Good University Guide is based on eight 21st =18th measures mainly relating to learning and teaching but also including research quality, based on the 2008 Research Assessment Exercise. . The main reason for the decline in ranking is a decline for the student satisfaction measure. This measure was based on the results of the 2014 National Student Survey. The score is based on the percentage of positive responses (agree and definitely agree) in each of the six question areas (teaching, assessment and feedback, academic support, organisation and management, learning resources, personal development) together with responses to a question on overall satisfaction.

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Times Higher Education World Ranking http://www.timeshighereducation.co.uk/world-university-rankings/2014-15/world-ranking 2014: 2013: . The THE World Ranking ranking is based on 13 separate indicators =121st =112th grouped into five categories: teaching (30%), research (30%), research influence (citations) (30%), innovation (research income from industry) (2.5%) and international outlook (7%). . A large proportion of the overall score is based on the results of opinion surveys, with 18% of the 30% for the research category and 15% of the 30% for the teaching category. It should also be noted that there is a significant lag in the data used to compile this ranking, for example the HESA data used to compile the 2014 ranking was from 2011-12. . Despite a decline in overall rank between 2013 and 2014, there was an increase in score for four out of the five categories and a corresponding increase in overall score for Sheffield, indicating that 2014 rank does not result from declining performance, but from competitors increasing their performance at a faster rate.

3. FINANCE 3.1 Draft financial results to 31 July 2014 . The draft financial results for 2013-14 have been circulated to Council members. The results are subject to external audit and are for the University entity only. The audited consolidated results will be presented to Council at its meeting on 24 November 2014. . The draft operating surplus for the year ended 31 July 2014 is £21.9m. As a percentage of income this is 4.1%, again achieving our operating surplus target of at least 3.0%. The surplus represents a significant positive change from the original budgeted deficit for 2013-14 of £5.6m. Differences in performance were identified throughout the year and during the forecast process, and the position was subsequently revised in the forecast outturn to an operating surplus of £15.0m. A key contributor to the positive result was tuition fee income, which was £10.0m higher than the original budget for 2013-14. In addition shared costs were £5.4m less than budget and Professional Services costs £1.5m less. The former includes lower than budgeted expenditure on depreciation (£2.1m) due to differences in the timing of project completions and lower utility expenditure (£2.3m arising from lower electricity unit costs and VAT recovery). . Income was £5.0m (0.9%) less than forecast, with the main shortfall being against research income £6.8m (5.0%), although research income was £14.8m (12.9%) higher than the previous year. The shortfall in research income was offset by lower research expenditure and was primarily due to higher levels of research equipment being capitalised than included in the forecast. . Expenditure, including indirect costs, was £11.9m (2.2%) less than included in the forecast. Key underspends compared to forecast include: research expenditure £9.0m (8.2%) and Professional Services departmental costs £1.2m (2.2%). The latter was mainly due to additional savings arising from delays in filling vacant positions (both existing positions and new resource) and savings from maternity leave arrangements. . In terms of the balance sheet, capital additions for the year totalled £89.5m, including the following schemes: Diamond £16.4m, St Georges refurbishment (Engineering) £8.3m, AMRC Training Centre £7.3m and the Pam Liversidge Building £6.3m. In year equipment totalling £29.4m has been capitalised, including £9.5m of equipment within AMRC and Nuclear AMRC funded by Catapult, £2.6m for a MEGA shell large scale ceramic casting facility, funded by the Aerospace Technology Institute, £1.3m within Nuclear AMRC funded by Sharing in Growth and c. £11.0m of research equipment. . In addition the value of fixed assets has increased by £101.9m following the re-valuation of academic and administrative buildings on 31 July 2014.

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. As at 31 July cash and short term deposits were £92.8m (July 2013: £98.2m) and the Net Cash/ (Debt) position was a positive £15.1m (July 2013: £17.9m). Although the net cash position has decreased by £2.8m in comparison to July 2013, actual cash was £24.5m better than forecast. This was primarily due to capital expenditure being behind the projected profile; with spend for the year of £89.5m compared to an original forecast of c.£108.0m. The sterling cash position was also enhanced by £26.4m from the conversion of €29.0m of Framework 7 funds in June and July. . The current liquidity days are 57 (July 2013: 87 days) compared to the target of 30 days. 3.2 Borrowings . On 15 August 2014, the University completed an agreement with RBS for a revolving credit facility for £75m. The termination date is three years after the facility agreement is dated, with the option to extend for a further two periods of one year. The arrangement fee, commitment fee and interest rate are: 0.25% of the facility, 0.25% per annum and 0.5% above LIBOR (on advances outstanding) respectively. Note: information regarding the terms of the loan is provided to Council and Finance Committee members, but may not be disclosed to third parties without prior written consent.

4. CAPITAL PROJECTS 4.1 Capital programme: overview . The seven-year capital programme 2010-17 totalling £272m (including HEFCE CIF2 contribution of £18m) is progressing well, with over £216m fully approved projects. An update on the main programme projects in design, construction or completion phases is provided below: 4.2 AMRC Factory 2050 (£21.7m; estimated completion October 2015) . A funding agreement with ERDF is being finalised. Once this is signed and agreed a further release of £10m can be actioned. . The construction market continues to strengthen and the estimated costs for the building were exceeded at tender stage. A rigorous value engineering exercise has been undertaken with over £1.7m of savings realised to date. This has been incorporated into the revised construction cost but it still remains above the original budget envelope by £1.7m. It has been agreed that the AMRC will fund the remaining shortfall. 4.3 New Engineering Building: The Diamond (£80.8m; estimated completion September 2015) . Construction is progressing well and in line with the contract programme. The contractor is currently completing the last section of structural concrete to finalise the building frame. The façade works are now being undertaken on the north elevation and building services first fix has commenced in the basement and ground floor areas. . The formal Stage 2 design freeze has been achieved and most of the specialist areas such as the jet engine enclosure have been finalised with the remaining pilot plant and some of the small lecture theatre spaces currently being concluded. . The programme and budget remain within the agreed limits. 4.4 Other Engineering projects . As part of the Engineering Estates Development Framework (EEDF), a budget envelope of £53.2m was agreed in principle to deliver the refurbishment and development of the whole St. Georges complex, comprising six phases. Phases 1 and 2 are live work in progress (projects are explained in more detail below) and Phase 3 requires some

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additional fees to progress its design. Phases 4-6 are being re-evaluated and will be incorporated into a revised EEDF covering the period 2015-20. 4.5 Engineering refurbishment phase 1 (£10.8m; imminent completion) . The refurbishment of A&B Floors is complete and occupied. M Floor of the Hadfield Tower is complete in terms of the Phase 1 contract works, however coordination with later project phases and a maintenance project associated with the roof top plant room has meant the programme for occupation will be delayed in line with the completion of Phase 2. 4.6 Engineering refurbishment phase 2 (£4.3m; estimated completion December 2014) . This phase of the programme involves the refurbishment of Hadfield Tower floors K & L. Good progress is being made and the programme is on target. 4.7 Engineering refurbishment phase 3 (£33m; estimated completion September 2017) . This phase of the programme involves the complete refurbishment and remodelling of the central wing and construction of new ‘heartspace’ between the Mappin Building and the central wing. Design of the preferred option is currently underway to RIBA stage D. . The project team are currently in the process of re-profiling the budget alongside outturn / condition improvements in order to establish a revised accurate condition position and the impact on future phases. 4.8 9 Mappin Street – Refurbishment for Economics and Journalism (£3.693m; completed) . This project is now complete and involved a full structural refurbishment providing state-of-the-art teaching and learning facilities. These comprise: state-of-the-art broadcast studios; multimedia newsrooms; breakout spaces and new office space; an industry-standard multimedia digital production suite; and revamped newsroom spaces. 4.9 Multi Storey Car Park – Durham Road (£9,825,071; expected completion December 2015) . This project will provide an externally managed c. 561 space multi-storey car park on the site of the existing Durham Road car park, with a proportion of the spaces available for visitor and hospital use. Following a tender process, the recommended building contractor is Simons Construction Ltd. The OJEU 10-day standstill period has passed without challenge. A further tender for the appointment of car park operator has concluded with the recommendation to appoint Q Park. . Work is being undertaken to mitigate the costs and risks associated with the existing underground fibre optic cabling.

5. THE STUDENT EXPERIENCE 5.1 Learning and teaching . Our work on the development of the undergraduate curriculum is now operating under the overarching banner of ‘Achieve More’. Considerable progress has been made in the Level 1 Faculty challenges, which aim to promote: team work, collaborative, networking and communication skills; inter-disciplinarity within faculty contexts; real world engagement; connection to both local and global contexts; and the drawing out of relationships with key research themes. For the first time all full-time Level 1 undergraduate students will be participating in a faculty challenge this year. The Faculty of Science challenge will be the first to take place, beginning on 13 October. Professor Tony Ryan has been appointed as the Academic Lead for the Level 2 inter- disciplinary projects and work has begun on defining the scope and potential modes of

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delivery for the inter-disciplinary projects to be undertaken by Level 2 students in 2015- 16. 5.2 Student matters . The University hosted the ‘English UK’ Student Experience Conference on 26 September. Aimed at language school staff involved in student administration, welfare, and accommodation, the event closed with a plenary on the ‘Sheffield Experience’, showcasing why the University was voted number one in the 2014 Times Higher Education student experience survey and highlighting ideas for language centres of all sizes looking to enhance their own learners’ experience. . The University’s Student Systems Project is considering ways of improving the IT systems and associated processes that support the student lifecycle, with the aim of providing more flexible, streamlined and consistent systems. The functional areas covered by the project are very wide-ranging, including student recruitment and admissions, student assessment, student finance, and customer relationship management. The project steering group has signed off a set of guiding principles to inform the project as it moves forward and a further series of consultative workshops will begin shortly. During September we have hosted a series of presentations from some of the large vendors in the student systems market which, alongside the work being done to assess the opportunities for in-house development, will help inform recommendations at the end of this phase of the project. . The Great Ambassador China placement scheme for students with Chinese language skills will be officially launched by Lord Livingston, Minister of State for Trade and Investment at the University on 25 November 2014. Running for one year from September 2014, the scheme will provide placement opportunities in a range of UK companies interested in developing business links with China. A number of Sheffield based companies have already expressed interest in offering placements and two multi-national companies will be also be providing opportunities. . The ‘Achievement Awards’ - an outreach programme involving young people in Years 10 and 11 from thirteen local schools - has been recognised by Lloyds Bank as an example of best practice at their recent national networking event. This year, 600 pupils received their Achievement Award certificate with 1,900 young people, parents/carers and teachers attending the ceremony in the Octagon Centre. The awards form part of the broader Lloyds Scholar scheme. 5.3 Enterprise . The University has received the Higher Education National Enterprise Educator Award for its work in developing the USE (University of Sheffield Enterprise) Enterprise Academy. USEA is a forum for staff interested in enterprise education providing continued professional development opportunities, best practice events, networking sessions, bespoke training for academic departments and support for attending national level training and development events. . A new set of five Impact of Research and Innovation Awards was announced at the recent Vice-Chancellor’s Enterprise Innovation and Impact Celebration Dinner, attended by over 180 representatives from the local business community. These awards recognised significant collaborations between businesses and academic departments. Prizes were also awarded to a number of student-led businesses.

6. RESEARCH AND INNOVATION 6.1 Research awards . New awards for the 12 months ended 31 August 2014 stand at £131.0m, which is £10.8m lower than the £141.8m at 31 August 2013. Although this value represents an

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improvement on the 12-month low of £129.0m reported in May 2014, there have been reductions across all sponsor categories over the 12-month period, with the exception of charities, which are £2.8m higher. The largest reduction was reported against Research Councils, a reduction of £7.5m. . The number of new awards received for the 12 months to the end of August 2014 is 718, excluding 55 new grants arising from the restructuring of AMRC grants in January/February. This compares with 685 for the 12 months to August 2013. . The value of the work in progress (order book) of research awards secured, but as yet unspent, was £232.4m as at August 2014, which compares favourably with the £214.5m as at August 2013. 6.2 Impact, innovation and knowledge exchange . The review of commercialisation activity, on which Council received an update in July 2014, is now well underway, and is expected to report in October 2014, with recommendations subsequently presented to Council. A range of academic colleagues have been consulted for their input into the Review. Dr David Bott, a former member of Council, is a member of the task and finish group appointed to undertake the review. . The Diurnal spin-out formed with Professor Richard Ross (Faculty of Medicine, Dentistry & Health) has announced positive results from a six-month Phase 2 clinical study on Chronocort®, a patented, modified-release, oral formulation of hydrocortisone. Diurnal is now finalising a funding round to commence a Phase 3 study that will hopefully take Chronocort® to market. 6.3 Strategic developments and partnerships . The Vice-Chancellor is to chair the Science and Innovation Board for the region, which will have a formal role in the governance of the Local Enterprise Partnership (LEP), advising on innovation strategies. The Board is in the process of being established. 6.4 Research Excellence Framework 2014 . The results of the REF2014 exercise will be published by HEFCE on 18 December 2014, with the press having access to the data under embargo before that so that the results are reported on the same day. Professional Services colleagues will work with UEB to prepare an institutional response to the results. 6.5 Research student matters . An event will be held in October to formally launch the University’s new Doctoral Academy to staff. . Doctoral Academy is the title adopted to refer to the doctoral research student experience provided by the University. The intention is that the Doctoral Academy will further raise our profile so that our position remains secure as a destination of first choice for many of the brightest prospective doctoral researchers, and provide a point of institutional focus when developing external relationships and influencing funders, sponsors and policy makers. Furthermore the Doctoral Academy will help to build a sense of community amongst the University’s doctoral research students, enhancing their interdisciplinary learning and experience. Professor Ian Douglas (Faculty of Medicine, Dentistry & Health) was appointed to the position of Director of the Doctoral Academy in June 2014. http://www.sheffield.ac.uk/postgraduate/research/ 6.6 Research Council news . In July 2014 the University hosted a visit from Prof Rick Rylance, Chief Executive of the Arts & Humanities Research Council. Professor Rylance met with senior staff, and had the opportunity to learn more detail of the research activities in the Faculty of Arts &

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Humanities through talks and a poster session led by PhD students. . A number of Programme Managers from the Engineering & Physical Sciences Research Council have visited Sheffield to engage with Early Career Researchers and to encourage them to apply for engineering fellowships. 6.7 Capital research infrastructure . The University’s submission for new capital equipment to support the five Sheffield-led EPSRC Doctoral Training Centres (£1.3M) for Doctoral training led by Sheffield was successful, with funding of £1.3m providing equipment across the Faculties of Engineering and Science and the AMRC. . Professor Jim Wild (Medicine, Dentistry & Health) has been awarded a Medical Research Council Clinical Research Infrastructure Grant of £8.3m to support the expansion of a state-of-the-art imaging infrastructure platform for image-based computational approaches to disease stratification. . Dr Tanya Whitfield (Biomedical Science) has successfully applied for capital funding from the Biotechnology and Biological Sciences Research Council BBSRC for a multi- user light-sheet microscope for Bateson Centre was successful.

7. INTERNATIONALISATION 7.1 International developments . The Vice-President of Nanjing University (NJU), China led a delegation to the University on Monday 7 July 2014. The visit saw the official opening of the joint research centre for Wide Bandgap Semiconductor Optoelectronics in the Department of Electronic and Electrical Engineering. There has been successful cross-faculty collaboration between Sheffield and NJU, and the two universities are committed to strengthen the existing engagement and explore future opportunities, with a particular emphasis on science and engineering. . The Vice Chancellor led a delegation to Brazil at the end of July 2014 to attend the third Universia International Vice-Chancellors' Meeting organised by Banco Santander. The focus of the conference was on developing strong global partnerships, in particular with Spanish and Portuguese-speaking universities, as well as cultural, political and economic challenges facing institutions around the world. A visit was also made to the Instituto Tecnologico de Aeronautica (ITA) – one of the leading engineering institutions in Brazil – and to the CBMM mining company in Araxa, the world's largest producer of niobium. The visit reflects a long-standing partnership between CBMM and the University that goes back to work undertaken by Mr Jack Woodhead and his student William Morrison, who in 1962 performed the first academic research illustrating the benefits of niobium additions to steel. . The University hosted a member of professional services staff from Doshisha University, Japan, for six weeks over the summer as part of a long-standing relationship with Doshisha University, which includes a two-year MA in Global Politics and Law dual award. . In August the Vice-Chancellor travelled to Boston, USA, to meet with Jeremy and Hanne Grantham to thank them for their generous £2.6m philanthropic donation. The University, in partnership with The Grantham Foundation for the Protection of the Environment, is establishing the Grantham Centre for Sustainable Futures, which will focus on advancing the science of sustainability and connecting it with the policy debate about how humans can live in a more sustainable way. . Recent correspondence between the Vice-Chancellor and his counterpart at the University of Cape Town has confirmed both universities' intention to explore an institutionally-supported relationship. This will build on existing research links in a 11

number of areas, including infectious disease, animal behaviour, social justice and grasslands ecology. . On 23 September, the President of Pohang University of Science and Technology (Postech), South Korea, visited Sheffield with a delegation of business leaders from Pohang. The group received presentations on the University's learning and teaching and research activities and the role that the University has played in shaping the city as it is today. After visiting the University, the delegation met with the Lord Mayor of Sheffield. . The new partnership with Study Group as the University's pathway provider was launched on 1 September. Study Group are now recruiting for entry into the University of Sheffield International College for September 2015. Kaplan will continue to recruit for their final intake in January 2015. A series of launch events will take place in Hong Kong and China in October with senior members of university staff in attendance.

8. HUMAN RESOURCES 8.1 National pay negotiations 2014-15 . Following an early agreement between the HE employers and recognised trade unions, an increase to all points on the national pay spine of 2% (and 2.4% on the first point) was implemented on 1 August 2014. 8.2 Reward and recognition . Following agreement by UEB of a revised Reward and Recognition Strategy for the University in October 2013, colleagues in Human Resources have been working with trade union representatives to explore the impact on the local implementation of the national framework on pay and reward. Negotiations commenced in June 2014 and have to date sought to review areas including Exceptional Contribution Awards (ECAs) and recognition and the Staff Review & Development Scheme (SRDS). . An early outcome of these negotiations was an agreement to harmonise the working week of staff on grades 1 and 2 within the University with those on other grades at 35 hours per week. This move, combined with the national pay award, resulted in all staff employed by the University achieving an hourly rate of at least £7.65, which is in line with the current figure recommended by the Living Wage Campaign. . Discussions with the trade unions are on-going and continue to be positive and constructive. Further details will be provided to Council as the negotiations develop. 8.3 Pensions: University of Sheffield Pension Scheme (USPS) . The University has settled the long running dispute over the changes to the USPS which were implemented in 2011, when the scheme changed from a final salary scheme to a cash balance design. Human Resources have maintained a dialogue with Unite and UNISON during the intervening period and both sides agreed to a formal settlement of the dispute in return for a one-off cash payment to affected staff members. . The Asset Backed Funding arrangement for USPS is intended to form part of the scheme’s triennial valuation at March 2014. However, this has been delayed due both the complexities of the required documentation and the potential risks relating to the use of a Scottish Limited Liability Partnership in the context of the referendum on the future of Scotland. The outcome of the referendum means that the transaction can now be finalised. . We are still awaiting the final valuation figures from the Scheme Actuary to determine the final value of the ABF, and Trustees are expecting to receive the first draft results at its meeting on 29 September 2014.

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8.4 Pensions: Universities Superannuation Scheme (USS) . Proposals for changes to USS, following its recent triennial valuation have been through a consultation exercise with employers. This will feed into discussions at the USS Joint Negotiating Committee comprising employer and trade union (UCU) representatives and an independent Chair. It is anticipated that a set of proposals for change will then go out to member consultations in early 2015 with a view to making any changes to USS from April 2016. This will coincide with the abolition of contracting out of the State Second Pension. . UCU have undertaken a ballot of their members over the proposals currently being considered and have achieved a mandate for strike action and action short of a strike. As at the date of writing, UCU is expected to call on its members to participate in action short of a strike in the form of not setting or marking coursework or exams, with effect from early November on a continuous basis. The action is, we believe, intended to put pressure on the employers’ representatives in the Joint Negotiation Committee of USS. We are expecting industrial action to run into 2015 as formal member consultation takes place following JNC negotiations. Human Resources are working on communications in conjunction with the UUK and EPF and are co-ordinating contingency plans to mitigate the impact of industrial action. The University’s web pages at http://www.sheffield.ac.uk/hr/guidance/ussconsultation contain relevant information regarding the proposals, the decision-making process, the University’s position and the industrial action. 8.5 Gender equality charter mark . The Department of Archaeology has been successful in achieving a bronze level award for the new Equality Challenge Unit’s Gender Equality Charter Mark (GEM), which aims to address gender inequalities and imbalance in the arts, humanities and social sciences. This new award is based on the principles of Athena Swan, and whilst it has a particular focus on the under-representation of women in senior roles (in line with Athena Swan), it also encourages progress on the under-representation of men in some subjects, and seeks to address the unfair treatment often experienced by trans people. . This round was a pilot, and five universities (none from the Russell Group) and 17 individual departments (the majority from the Russell Group) achieved a bronze level award. There were no silver awards in this round. 8.6 Staff Survey . The University staff survey results for 2014 have been well communicated throughout the University. As previously reported to Council, 72% of staff responded to the survey with many positive results. Of particular note was that 96% of staff said that they would recommend the University as an excellent place to study and 94% of staff stated that they are proud to work for the University. . A University wide event is to be held later this year to give staff the opportunity to contribute to areas of improvement and reasons to celebrate working for the University. Faculties and Departments have been provided with staff survey results for their area or department and Heads of Departments and managers are being asked to share the results with staff and ensure staff are engaged in action planning to make each area of the University 'a remarkable place to work'. . The staff survey web pages will be kept up to date so that sharing of good practice across the University can occur. . Engagement is an ongoing process, and although the results are positive, work must continue to maintain and improve on these high scoring results.

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8.7 New key appointments . Professor Rowland Atkinson has been appointed as a Research Chair in Inclusive Society in the Department of Town & Regional Planning with effect from 1 September 2014. Professor Atkinson was previously a Reader in Urban Studies and Criminology at the University of York. . Mr Robert Dufton has been appointed as Director of Campaigns in Development, Alumni Relations and Events with effect from 1 November 2014. Mr Dufton’s previous roles include Director of the Paul Hamlyn Foundation, Director of the Rayne Foundation and Deputy Director of Operations for the National Heritage Memorial Fund. . Professor Winston Hide has been appointed as a Chair of Computational Biology within Neuroscience with effect from 4 August 2014. Professor Hide was previously Associate Professor at Harvard in the School of Public Health. . Mrs Michelle Nolan has been appointed as Faculty Director of Operations (Science) in the Faculty of Science with effect from 17 November 2014. Mrs Nolan is currently Head of Professional Services (Faculty of Development & Society) at Sheffield Hallam University. . Professor Jenny Pickerill has been appointed as a Professor in Environmental Geography in the Department of Geography with effect from 1 July 2014. Professor Pickerill was previously a Reader in Environmental Geography at the University of Leicester. . Professor Gwilym Pryce has been appointed as Director of the Sheffield Methods Institute within the Faculty of Social Sciences with effect from 1 August 2014. Professor Pryce was previously Professor of Urban Economics and Social Statistics at the University of Glasgow. . Professor Edward Rhodes has been appointed as a Chair in Physical Geography in the Department of Geography with effect from 1 July 2014. Professor Rhodes was previously a Professor at the University of California, Los Angeles. . Professor John Sandars has been appointed as a Professor in Medical Education in the Academic Unit of Medical Education with effect from 1 August 2014. Professor Sandars was previously an Associate Professor at the University of Leeds.

9. CORPORATE AFFAIRS 9.1 Reputation and engagement . Delivery of the objectives set out in our internal communications strategy has continued, with progress in developing improved channels for staff news. Due to launch to all staff this autumn are a new fortnightly e-bulletin and a magazine, to be published three times a year. The magazine will have a small print run, as well as a digital edition, and content will be developed by a cross-University editorial board. . The Corporate Affairs Team has been shortlisted for a Chartered Institute of PR PRide award for the internal communications campaign to encourage participation in the Staff Survey. Winners will be announced at the end of November. 9.2 Global campaigns . A proactive approach was taken to showcasing our academic expertise for topical news stories with the production of a Scottish Referendum Expert Guide aimed at national and international media. Featuring eight academics from the departments of Politics, English, Economic, Geography and Law, and our research experts from SPERI and the Sir Bernard Crick Centre, we generated coverage in the Wall Street Journal. 9.3 Engaging the city to make a difference

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. Academics from the University teamed up with professionals from Sheffield’s cultural, creative and digital industries to bring their research vividly to life in the 2014 Festival of the Mind, which ran from 18-28 September. Designed to showcase cutting-edge new thinking in fields as diverse as astronomy and politics, the Festival included exhibitions, performances, lectures, films, debates and demonstrations based around six key themes: Change, Chaos, Global, Joy, Resilience and Urban. 9.4 Media coverage . The University generated approximately 3,256 cuttings in the press and media between 12 June 2014 and 22 September 2014. This includes coverage in key countries such as 1,256 cuttings in China, 170 cuttings in India and Pakistan, 119 cuttings in Latin America, and 22 cuttings in Saudi Arabia and other Gulf states. Recent examples of stories attracting significant coverage included: o research from the Department of Physics & Astronomy, which has developed solar cells that can be spray painted onto surfaces; o a study from the Medical School, which has quantified the global TB burden among children; o research by the University’s Department of Animal & Plant Sciences and the University of Southern California, which has developed a new technique to help people trace where their DNA was formed more than 1,000 years ago. 9.5 Outstanding achievements and awards . The University’s Students’ Union was rated the best in the UK for the third year in a row in the latest National Students Survey. The University was also voted the number one university in the Yorkshire region for student satisfaction. . The University has been shortlisted for three prestigious Times Higher Education (THE) Awards: Widening Participation Initiative of the Year, Outstanding International Student Strategy and Outstanding Support for Early Careers Researchers. The winners will be announced in November. . Dr Sarah Hsiao, a British Heart Foundation funded researcher in the Department of Cardiovascular Science, has been awarded the prestigious Young Investigator of the Year award by the European Society of Cardiology for her research into ways to reducing the damage of stents. . Bryony Page, an undergraduate student in the Department of Animal & Plant Sciences, who is forging a successful career as an international trampolinist, was awarded the 2014 Chancellor’s Medal in recognition of her outstanding academic and sporting success. . A specialist detector which may play a fundamental part in helping the UK reduce its carbon emissions, being developed by scientists at the University, received a visit from Michael Fallon MP, the Government Minister of State for Energy.

10. DEVELOPMENT AND ALUMNI RELATIONS 10.1 Funds raised . Cash received – a comparison of the full year 2013-14 to the previous year (2012-13) shows that cash received increased by nearly £1m in 2013-14: Description Timeframe Value Cash Income received 2013-14 1 August 2013 to 31 July 2014 £3,042,155 Cash Income received 2012-13 1 August 2012 to 31 July 2013 £2,106,070

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. Cash received since 1 August 2014 compared with the same time period a year previously: Description Timeframe Value Cash Income received 2014-15 1 August 2014 to 22 September 2014 £621,025 Cash Income received 2013-14 1 August 2013 to 22 September 2013 £338,724

10.2 Major gifts, milestones and significant developments . Individual gifts and pledges: o Mrs Valerie Lawrence has donated £10,000 for scholarships in memory of her late husband Mr Garth Lawrence (BEng 1965). o Mrs Mavis Sellars has donated £10,000 for a Prize in Materials Science and Engineering in memory of the late Emeritus Professor Christopher Sellars. o The second instalment (of three) for SITraN by a US donor who has requested anonymity – for £565,063 ($958,970) o Mr Eric Bridgstock has donated £104,000 for Parkinson’s Disease research - in total he has donated £184,000 (£230,000 with Gift Aid) for this research. o The Ride Across Britain cycling team, captained by Professor Tony Ryan, has raised over £32,000 for Deafness Research. . Trusts and Foundations: o Epigenesys have continued their scholarship support by donating £9,000 for scholarships in the Faculty of Engineering. o Nexen Inc have continued their scholarship support by donating £18,000 for scholarships in the Faculty of Engineering. o £375,806 has been received for the Grantham Centre for Sustainable Futures from the Grantham Foundation for the Protection of the Environment (part of the gift agreement for a confirmed pledge of £2.6million over the next four years). o £10,680 was received from the Vega Science Trust to support ongoing costs for the maintenance of the Vega Trust Archive. . Legacy gifts and pledges: o A legacy gift of £20,000 was received from Mr Don Tomlin (BSc 1940) to be added to the endowment fund for the Clarke Prize for Practical Physics. o A legacy gift of £15,000 was received from Mrs Joan Robinson for the Julian Payne endowment fund for Music. o A legacy gift of £10,000 has been received from Emeritus Professor Eric Sainsbury to 'enhance the direct wellbeing of students'. o A legacy gift of £30,000 from Mr Nicholas Ratcliffe (BEng 1970) to establish a prize in the Department of Civil and Structural Engineering. 10.3 Corporate fund raising . At the last meeting of Council, a request was made that the subject of corporate fundraising be included in the DARE presentation to Council on 13 October 2014. The University submits fundraising figures to the annual Ross/CASE survey on HE Philanthropy. The University’s figures for 2012-13 show that £703,716 was received from Trusts and Foundations; £189,860 of philanthropic funding was received from companies; £213,163 from ‘other’ organisations (gifts direct to departments, some of which may be companies). Taking just the company category, this represents 8.9% of 16

our total cash income for 2012-13 (19% including ‘other’ organisations). 10.4 Notable events . On 3 July we held an event for over 100 retired staff promoting different aspects of the University’s research followed by a reception in the Library Exhibition space. . In July, 15 graduation ceremonies were held and the Graduation Dinner (for 140 guests) took place in Inox Dine. . On 23 August a meeting of the University of Sheffield in America Inc., took place in New York and the Vice-Chancellor then hosted an alumni reception for over 100 at the University Club. . On 13 September the Annual Alumni Reunion (classes of 1974, 1984 and 1989) took place with a variety of formal and informal events attended by 250 alumni. Alumni receptions have also been held in Edinburgh and Melbourne, Australia.

11. SERIOUS INCIDENT REPORTING . In its role as principal regulator of HEIs as charities, HEFCE requires an annual declaration that serious incidents have been appropriately reported. This declaration is made on behalf of members of Council, and it is therefore appropriate that they should be informed on a regular basis about incidents reported to HEFCE. HEFCE defines a serious incident as ‘one which has resulted in, or could result in, a significant loss of funds or a significant risk to a charity’s property, work, beneficiaries or reputation’. . Details of any serious incidents reported to HEFCE will be notified to Council through this Report. . During the period since 7 July 2014, no serious incidents have required report to HEFCE.

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