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Statement of Accounts 2018-2019

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Statement of Accounts 2018-2019 Statement of Accounts 2018/19 For the year ended 31 July 2019 Keele University Statement of Accounts 2018/19 Contents 4 28 Introduction from Accounts the Vice-Chancellor 23 Statement of comprehensive income and expenditure 24 Statement of changes 6 in reserves Strategic report 25 Balance sheet 26 Statement of cash flows 22 27 Statement of Corporate governance accounting policies 35 Notes to the accounts 26 Independent auditor’s report to 70 Council members and the Council of Keele University professional partners 2 Keele University Statement of Accounts 2018/19 2nd 97% 13th Ranked second in England In the most recent national Research Ranked 13th globally for for broad-based public universities Excellence Framework (2014), 97% of our campus sustainability – for overall student satisfaction in the research was classified as world leading, UI Green Metric ranking 2018 2019 National Student Survey (NSS). or of international importance This means that Keele has been ranked in the top 3 in seven of the last eight years. 96% Continued strong home undergraduate recruitment 96% graduate employability – Top 5 Higher Education Statistics Agency (HESA) Destinations of Leavers Top 5 in the Teaching Excellence from Higher Education 2017 Framework (TEF) – Times Higher ranking of the TEF 57th (broad-based Universities) Ranked 57th globally in the Times Higher Education Joint 1st University Impact Rankings 2019 Joint 1st in England for student satisfaction with course – Guardian University League Table 2019 3 Keele University Statement of Accounts 2018/19 Professor Trevor McMillan Vice-Chancellor, Keele University 4 Keele University Statement of Accounts 2018/19 Introduction from the Vice-Chancellor Keele continues to be recognised for our outstanding quality of education provision and research expertise. We began 2018/19 nominated for the This year we continued to see a rise in Keele remains a national leader in pro- Times Higher Education University of the Home Undergraduate recruitment, seeing viding an excellent student experience, Year award. Our research saw new heights the largest ever intake for this group. coming second in England for broad based with the award of several research grants Keele welcomed a total of 2,503 Home/EU universities in the latest National Student for projects with a value of over £1 million Undergraduate first year students in 2018, Survey. We have also this year secured and the creation of research partnerships marking a 2.5% increase on 2017/18. It £750k of funding from the Office for Stu- with world-leading institutions and groups. is impressive that Keele can continue to dents (OfS) to develop the student mental In total, the university received £17.1m of increase its market share in this group health and wellbeing offer in the region as research income during 2018/19. We were considering increased competition part of a £2.2m project in partnership with ranked as one of the Top 100 universities from universities and a smaller pool of Staffordshire University. We will continue to in Europe for teaching, and 8 subjects applicants due to a demographic dip of work hard to ensure that we offer appro- were placed in the Top 10 in the National UK 18-year-olds. International and EU priate support to our students, along with Student Survey, showing that our students undergraduate recruitment has remained opportunities for extra-curricular activities truly appreciate the quality of the education challenging, which is not unexpected to promote student wellbeing. that we provide. in the current political climate, and this has resulted in a lower than expected In June, we released our new strategic The university in the last twelve months Postgraduate Taught (PGT) intake. These vision, Our Future, to lead us into the continued to foster its strong partnership two areas are both key strategic priorities 2020’s with a clear vision of growth and relationships with KeeleSU and the Keele for 2019/20, where we will be working development for the university. The full Postgraduate Association. A partnership to redevelop our portfolio to be more strategy document can be found on the group has been formed to ensure that attractive to these student groups. University’s website. We have provided a we meet regularly to discuss key issues brief evaluation of our previous strategy, for students and to work together to find We have made exceptional progress this Our Vision 2020 in this report, to establish ways to resolve them. We look forward year in cementing working partnerships where we exceeded or fell short of our to continuing to work closely with the with the region, culminating in the Smart ambitions from 2015. As important as it is students’ unions and their representatives Innovation Hub within the new Denise to look back and reflect on the previous over the coming year. Coates Foundation Building on cam- year, we must also look forward towards pus. This building will form a hub for our the future of the university, and so included regional enterprise activity, by incubating within this report is a short summary of our small businesses and providing space to ambitions for the year ahead. improve our level of business and partner- ship development, alongside a new home The latter part of the year was spent for our Business School. As part of our considering our long term financial business engagement efforts this year, we sustainability. Set against the context of have claimed £6.3m of European Regional the release of the Augar Review and an Development Funding (ERDF) which has ever-changing political outlook, in February enabled us to support 126 businesses and we released a robust 3-year Financial enterprises in 142 interactions, allowing Sustainability Plan which will ensure that the university to support local businesses the university remains a going concern for and develop the local economy. now and in years to come. I would like to thank all of our colleagues, partners and stakeholders for a great 2018/19 and look forward to working with you for another year. 5 Keele University Statement of Accounts 2018/19 STRATEGIC REPORT Highlights of the year £17.1m research funding achieved. There 1 were 122 research grants awarded to the University in 2018/19. The new Harper and Keele Vet School was 2 approved, including approval for a veterinary hospital on campus, and continues to work towards its first intake in 2020. Sir David Attenborough came to Keele 3 in May to open the new Sir David Attenborough laboratories within the new Huxley building extension. The university was awarded £750k to work 4 on supporting mental health as part of a £2.2m project funded by the OfS and DfE. The University were proud to be shortlisted 5 for University of the Year at the Times Higher Education Awards 2018. 1 Strategic Report Strategic Keele was one of 12 institutions to achieve 6 a bronze Race Equality Charter Award celebrating the university’s efforts to tackle race inequality in Higher Education. Keele ranked 57th in the THE World 7 University Impact Rankings. The university climbed to 32nd place in the 8 Guardian league tables, our highest ever score, with 5 subject areas in the Top 10. Top 3 university in the National Student 9 Survey in 7 of the last 8 years. 6 Keele University Statement of Accounts 2018/19 “This university is showing that it understands the importance of sustainability and human beings cannot go on taking from the natural world without any care.” 3 Sir David Attenborough 4 2 7 Keele University STRATEGIC REPORT Financial Highlights Total Income of Tuition Fee £168.8m Income Total income – income for the year totalled £168.8m, an increase of £3m in income on 2017/18. £80.5m Tuition Fee Income – tuition fee income increased slightly by £0.3m, to £80.5m. Strong Home/EU UG recruitment has offset slightly lower than expected Surplus before other gains overseas and PGT recruitment. Surplus before other gains/ losses – ignoring the actuarial movement in staff Staff costs costs, the consolidated operating surplus Staff costs – on-going staff before other gains/ costs (note 7) totalled £89m losses reduced slightly £3.8m for 2018/19, equalling in 2018/19 to £3.8m 53% of total income. The from £3.9m. This from £3.9m percentage compared to includes depreciation income figure has fallen and interest payable compared to 2017/18. on loans and pensions. This was expected and primarily due to increased one- off costs and voluntary losses severance payments. Capital Expenditure Cash generation £18.5m £31.6mCapital Expenditure – £31.6m of capital Cash Generation – the University ended the expenditure was realised year with cash and cash equivalents of £18.5m. on projects including the new Central Science Laboratories (£12.1m), Smart Energy Network Demonstrator (£3.5m) and Denise Coates Foundation Building (£10.3m). 8 Keele University Statement of Accounts 2018/19 STRATEGIC PLAN – OUR VISION 2020 Evaluation of performance The University’s previous strategic plan, Our Vision 2020, has now been replaced by the development of a new university strategic vision, Our Future, which was launched in July 2019 following approval from the Council, the University’s governing body. Our Vision 2020 saw many successes Achieved over the five years of its implementation, but over the last five years the higher Aim 2: Through the Distinctive Keele Aim 5: To promote environmental education landscape has changed Curriculum provide outstanding sustainability in all that we do. dramatically, and therefore it is necessary discipline-based education and a unique The university achieved highly in this aim, to realign our aims with the changes that portfolio of personal development securing almost £14m funding from the have occurred. This brief report outlines opportunities in the context of a ERDF and the Department for Business, where the university succeeded in its aims sector-leading student experience.
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