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Harper Adams University College Harper Adams University College Annual Report and Financial Statements 2011/2012 2011/2012 Harper Adams University College Annual Report and Financial Statements 2011/2012 01 Contents 02 Chief Executive’s Report 09 Operating and Financial Review 12 Report of the Governors and Corporate Governance Statement 17 Independent Auditor’s Report 19 Statement of Accounting Policies 21 Consolidated Income and Expenditure Account 22 Statement of Consolidated Total Recognised Gains and Losses 22 Consolidated Statement of Historical Cost Surpluses and Deficits 23 Balance Sheet 24 Consolidated Cash Flow Statement 25 Notes to the Financial Statements 40 Five Year Summary Accounts 41 Glossary of Terms 02 Annual Report and Financial Statements 2011/2012 Chief Executive’s Report Introduction that took place on 1 August 2012, most notably, perhaps, the dairy when, as well as retaining our status sector. Nevertheless, the need to Harper Adams University College has as a registered charity, we became attract new entrants into the agri-food had an outstanding year in which it has a company limited by guarantee. We sector, particularly those with the continued to lead the way in higher have continued to secure efficiencies ability to appreciate and adopt new education in its specialist subject area in our operational costs whilst making scientific and technological advances, and in the development of applied appropriate investments in new is all too clear. The UK food chain is research, both of which are increasingly resources and, critically, in staffing reported1 to have a turnover of £412 required to tackle the challenge of that can add to our course portfolio billion, exports of £16 billion and to global food security. Our staff have and strengthen our teaching in major employ more people than any other played a critical role in securing recent disciplines. UK industry sector, so it is of vital successes and our Governors have economic importance. Nevertheless, been instrumental in ensuring that our Over the course of the last year we a review by the Sector Skills Council business operations are efficient and developed a new Strategic Plan for for the environmental and land based effective, in support of our academic the period to 2016/17, in which we sector2 concluded that there was a objectives. The sense of community established five key objectives: requirement to attract 60,000 new amongst our students remains very entrants over the next 10 years, with strong, and their commitment to Harper 1. Secure a successful transition to a particular focus on those with high- Adams adds considerably to our work the new funding and operating level (graduate) skills. The Sector Skills and to the positive way in which our environment for higher education; Council for the food industry identified activities are regarded by industry. Our a need for 114,000 new entrants in links with industry are another critical 2. Enhance the role of Harper Adams the period 2007-2017, and has more component in our academic success as a critical contributor to applied recently noted3 that progress is not and we remain grateful to all who work research and as a leading source of yet meeting expected targets. Of with us in support of our students and the next generation of those working these posts, 45,000 were expected staff. in the agri-food chain and the rural to be at higher skills levels to provide economy as the UK addresses the the managers and professionals The last year has seen considerable challenge of global food security; able to lead the sector in the future, change in the higher education funding requiring recruitment activity at 50% system. The added complexity of the 3. Internationalise our academic of current staff levels within the sector. new funding arrangements and the activities so that our global reach is The skills requirements include food introduction of measures to establish extended and strengthened; scientists and technologists, engineers a market within the higher education to manage complex automated system have required a tremendous 4. Maintain and enhance our systems and managers able to apply effort from staff to ensure that current performance in the provision of high new manufacturing and processing students continue to receive a high quality teaching and learning; techniques in food production4. quality education whilst entrants for 2012/13 have been guided through the 5. Achieve full University title. The EU has announced its proposed new system in an effective manner. I reforms to the Common Agricultural am pleased to report that the feedback This framework is guiding our business Policy (CAP)5 which, if agreed, will not from both groups has been good, and efficiency and investment plans and is only alter the method of CAP payments that we continue to be seen as having backed up by operational planning that made available to eligible farms but a supportive approach to our academic seeks to ensure that the objectives are also the structure of environmental activities that is welcomed by students, considered and acted upon throughout measures expected in return for these as well as their families and friends. the University College. payments. The CAP reforms are already the subject of considerable The Operating and Financial Review Over the last year the focus on global debate, but the main elements are provides further details about food security has strengthened, with likely to be settled over the next year the strong financial performance considerable attention being paid to and could have considerable impact demonstrated in our financial accounts. the impact of a more volatile climate upon the operating environment for It also outlines an important change and the difficulties being experienced farming in the UK. in our constitutional arrangements in some parts of the agri-food chain, 1 Improve Ltd (2011) UK Food Supply 4 Improve (2010) The Food and Drink 7 See, for example: Taylor, J. (2010) 10 DEFRA (2012) Driving Export Growth in Chain. York: Improve Ltd. Manufacturing & Processing Industry: Science for a New Age of Agriculture. the Farming, Food and Drink Sector: A United Kingdom Summary Report Sector London: The Conservative Party. 11p plan of action. London: DEFRA. January 2 LANTRA (2009) A Skills Assessment Skills Assessment. York: Improve Ltd. 2012 for the Environmental and Land-based 8 House of Lords (2011) Innovation in EU 40p Sector: UK Report. Stoneleigh: LANTRA. agriculture. House of Lords European 11 HM Government (2011) Water for Life. 87p 5 See http://www.defra.gov.uk/food-farm/ Union Committee, 19th Report of London: DEFRA, December 2011 farm-manage/cap-reform/ (accessed 6 Session 2010-12, HL Paper 171, 3 Improve (2011) The Food & Drink 12 DEFRA (2012) UK 2012 Climate Change November 2011) London: The Stationery Office Ltd. 91p Manufacturing and Processing Industry Risk Assessment. London: DEFRA, in England: Labour Market Information 6 Tasker, J. (2011) CAP reform: What it 9 BIS (2011) Innovation and Research January 2012 Profile 2010/11. York: Improve Ltd. 9p means for your farm. Farmers Weekly, 21 Strategy for Growth. London: BIS. October 2011, pp16-17 December 2011, p43 Harper Adams University College Annual Report and Financial Statements 2011/2012 03 utilities sectors is timely because of the Student Recruitment and potential for rural land resources to be the Student Experience used for renewable energy production, and the increasing importance placed We had our highest ever recruitment on the issue of water security in the of undergraduate students in October UK and overseas. The impact of water 2011, with exceptionally high demand supply management on agriculture, for courses in the final year of the The proposed CAP reforms include and on the environment, has been old higher education funding system. a new scheme to encourage new addressed by the Government’s Recruitment to taught postgraduate entrants into farming6. The BBSRC and strategy, ‘Water for Life’11, and has courses resulted in an intake of 59 new the Government7 are also concerned been identified as a critical factor in the mainstream students resulting in a total to ensure that the UK applied science UK Climate Change Risk Assessment12. taught postgraduate student enrolment base in agriculture is not lost and that of 66.2 full-time equivalent students (93 a way is found to encourage young Harper Adams is a specialist institution new enrolments if co-funded employer and mature entrants with a systems that delivers higher education in engagement students are included). background in agriculture into research support of the agricultural, agricultural Overseas student numbers grew and development careers and into the engineering, food science and slightly with a cohort of 85 students wider industry. Reporting on this matter technology, environmental science, joining us from Beijing Agricultural the House of Lords European Union veterinary science and land-based College. Postgraduate research student Committee8 concluded that lifelong sectors. It is one of only three English numbers reached 43, boosted by our learning amongst the agricultural specialist institutions operating in growing applied research profile and community, food processors and these subject areas. It offers multi- additional research grant income. retailers should be encouraged to help disciplinary courses that contain a firm embed innovation. The Committee grounding in science and technology added that, ‘studying agriculture to meet the needs of the agri-food should be seen
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