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Integrated Annual Report 2018–19 Contents Contents Review of the year Relationships and resources Highlights of the year 04 Our People: Introduction from the students and colleagues 40 Chair of Council 06 Infrastructure 44 Conversation with the Networks and partnerships 47 Vice-Chancellor and President 08 Environmental sustainability 49 Effectiveness and financial sustainability 50 The University Overview 10 Our principal stakeholders 12 Financial Review 52 The University at a Corporate Governance glance 2018–19 14 Statement 59 Charity status and Public Remuneration Report 65 Benefit Statement 16 Independent Auditor’s Value creation model 18 Report to Council 69 Working to address UN Statement of Principal Sustainable Development Goals 20 Accounting Policies 71 Materiality and risk 22 Consolidated and Our approach to risk University Statement of management 24 Comprehensive Income 76 Consolidated and University Statement of Changes Strategic review in Reserves 77 Our Vision and Strategy 26 Consolidated and Education for life 28 University Balance Sheet 78 Research for discovery Consolidated Cash Flow and impact 31 Statement 79 Engagement and place 34 Notes to the Financial Global 37 Statements 80 Front cover image: The Nick, a sculptural shelter at Blakehope Nick, Kielder, designed by Masters of Architecture students from the University. 02 Integrated Annual Report 2018–19 Contents The University’s Vision and Strategy shapes brighter futures, enabling students to achieve their full potential. We are a world-leading university, advancing knowledge, providing creative solutions and solving global problems. e are working to be Our 2018–19 annual report is a third In relation to the IIRC Framework for at the forefront of step towards fully adopting integrated integrated reporting, we confirm that integrated thinking reporting (IR). It is informed by the Executive Board and Council have Wand reporting in the IR framework developed by the been involved in the development higher education sector. This is a International Integrated Reporting of this Integrated Annual Report. framework that has been adopted Council (IIRC). We provide an overview Council acknowledges its overall across the globe to make more of the University and our strategic responsibility for the accuracy and effective use of resources, improve objectives, summarise our value integrity of the Report’s contents. We decisions and enhance accountability, creation model, describe our key recognise that this report does not yet stewardship, transparency and trust. stakeholders and partnerships, explain fully comply with the IIRC Framework We use the framework to help us our approach to materiality and and more work will be carried out understand the strategic enablers risk, outline key factors influencing in the coming year to develop our and co-dependencies that materially performance, report on relationships approach to reporting. This will be affect our ability to create value for and resources and describe our informed by external peer review our colleagues, students and external governance structure in detail. arranged by the IIRC. partners, and thereby to deliver our Vision and Strategy. 03 Review of the year Highlights of the year November 2018 An international team of archaeologists – drawn from Newcastle and the Universities of Florence and Amsterdam and the Vatican Museums – reveals new insights into the history of Rome. August 2018 Professor Hayley Fowler is made a Fellow of the American Geophysical Union for exceptional scientific contribution in the fields of Earth and space sciences. December 2018 Park View Student Village is officially opened by the September 2018 Vice-Chancellor and President, Chris Day. Our Claremont and Daysh buildings start a complete refurbishment that will transform the 1960s buildings and improve their energy efficiency. From Newcastle. For the world. January 2019 October 2018 UKRI launches an ambitious new approach to tackle some The University unveils its new Vision and Strategy, outlining our of the world’s most pressing challenges. Two of the 12 global future direction. research hubs, both focused on water, are led by our experts. 04 Integrated Annual Report 2018–19 Review of the year ©Colin Davison @rosellastudios May 2019 February 2019 Professor Dame Louise Robinson is named one of the Nation’s Lifesavers. She had been awarded a DBE in the New Year Honours List. Two Fine Art graduates exhibit at BALTIC Centre for Contemporary Art. Peter Hanmer and Petra Szemán are part of Digital Citizen – The Precarious Subject. March 2019 New research reveals that insulin production in the pancreas can recover in patients with Type 2 diabetes. June 2019 Modern language students put their skills to use by helping Newcastle Castle improve information for overseas visitors. April 2019 July 2019 Newcastle signals its commitment to climate change action Umme Imam, a founding member and executive director of The by joining a number of organisations in the UK and all over the Angelou Centre, offering services for black and minority ethnic world to declare a climate emergency. women, is conferred the title of Honorary Doctor of Civil Law. 05 Review of the year Introduction from the Chair of Council Organisations achieve long-term success by knowing their strengths and their values and by translating that Overall student knowledge into strategic decisions. The last year has satisfaction 2018-19 seen some great examples of how the University has brought its values to life by implementing our Vision and National Student Strategy that was launched in October 2018. This report Survey 85% includes details of initiatives that started, or took place, Postgraduate Taught during the past 12 months enabling us to end the year in Experience Survey 82% a strong position. International Student Barometer 93% Paul Walker Chair of Council and Pro-Chancellor Read more on pages 28-30. want to begin by highlighting The financial sustainability of all our The value of new research grants three external challenges that pension schemes has continued to awarded in the past year rose by 2% to I identified in last year’s report require focus by Council and the senior £121m demonstrating a strong pipeline Iand considered recently with my team. The March 2018 valuation of the of research activity. colleagues on Council. These arise USS pension scheme concluded in from the environment in which we September 2019 and provides some A key highlight was the successful work and create uncertainty that must degree of cost stability for a period monetisation of our rights to receive be managed effectively by the Vice- of two years – which I welcome. The royalties in relation to Rubraca, a Chancellor and President together with next valuation will be as at 31 March cancer drug developed in partnership his senior team. 2020, less than five months from now, with Cancer Research UK. This so this will continue to be a key issue generated a net receipt of £13.1m As we passed the original Brexit date during the coming year. This year’s for the University. on 29 March 2019, the UK entered a financial statements have had to be In the past year, we were listed period of further political instability prepared on the basis of the March with a lack of guidance on key issues among the top 10 institutions in the 2017 valuation, requiring a provision UK for graduate prospects both in affecting University operations. The of £80m for the impact of the deficit Vice-Chancellor addresses what the Sunday Times and the Complete recovery plan. We expect the 2019- University Guide. The University we are doing to mitigate our risk on 20 financial statements to recognise pages 8 and 9, and I support our efforts was also placed third nationally for a credit of £52m, resulting from the graduate entrepreneurship, based on to secure sustainable funding for March 2018 valuation. The provision world-class research and education. the combined revenue of its trading movements are explained in more start-ups in the latest Higher Education University finances have also been detail on pages 55-56. Business and Community Interaction under the spotlight following the Amid the external challenges, we have Survey. publication in May 2019 of the Augar continued to perform well across a In terms of student satisfaction, review of post-18 education and number of areas. The total number of funding. It is not yet clear which, if any, we recorded high scores in the students and employees continued to International Student Barometer with of the recommendations will be taken grow and our income, which exceeded forward but we will need to respond to 92.5% of respondents stating they were £500m for the first time last year, grew satisfied and 95.6% saying they were any changes in the funding model for by a further 11% to £571m in 2018-19. higher education. happy at Newcastle University. 06 Integrated Annual Report 2018–19 Review of the year Within the National Student Survey shared values which brings to life my priorities are to ensure that we of final-year undergraduates, we our commitments to sustainability, continue to mitigate the impact of the continued to score above the national partnership working and Equality, ‘demographic dip’ in university-age average for overall satisfaction; Diversity and Inclusion (ED&I). domestic students, to take measures however the relative position in a to address the recent drop in student number of domains shows room for Over the past year, I am proud of satisfaction and to monitor the wider
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