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2009 LANCASTER UNIVERSITY ANNUAL REPORT AND ACCOUNTS Lancaster University Report and Accounts 2012 and Accounts Report University Lancaster Lancaster University Annual Report 2012 Inner_Layout 1 06/12/2012 12:30 Page 1 1 CONTENTS Vice-Chancellor’s review 2 Pro-Chancellor’s review 3 High notes of the year 5 Awards and distinctions 13 Advancing knowledge through research 21 Key facts and figures 27 Financial Statements 31 Operating and Financial Review for the year ended 31 July 2012 32 Strategic Plan Performance Indicators 35 Statement of Corporate Governance 40 Independent Auditors’ Report to the Council of Lancaster University 45 Statement of Accounting Policies 46 Consolidated Income and Expenditure Account 48 Statement of Consolidated Historical Cost Surpluses and Deficits 49 Balance Sheets as at 31 July 2012 50 Consolidated Cash Flow Statement 51 Reconciliation of Net Cash Flow to movement in Net Debt 52 Consolidated Statement of Total Recognised Gains and Losses 53 Notes to the Financial Statements 54 Chancellor’s Guild roll of honour 76 Chancellor’s Guild corporate donors and legacy pledges 77 Trusts, foundations and charities 78 Chairs & Readerships 79 Annual Report 2012 Inner_Layout 1 06/12/2012 12:30 Page 2 Lancaster University VICE-CHANCELLOR’S REVIEW I am pleased to report on a positive year for Lancaster, my first as Vice-Chancellor and one that saw the University rise to the challenges brought to the sector by the changing financial and policy environment. The combination of our strong academic reputation, emphasis on employability and the student experience has resulted in higher entry grades. Lancaster now has over 60% of students with AAB grades or better, the highest ever for the University. Studies intend to establish a new I am pleased to be able to welcome two university campus in China which will new people to my senior management offer undergraduate and postgraduate team who I am sure will help take the programmes, enhance the research of University forward. Professor Andrew both universities and expand the brand Atherton joins us as Deputy Vice- impact of Lancaster University on the Chancellor and also Nicola Owen Chinese education market. Lancaster becomes Chief Administrative Officer. University would be one of the first The continuing changes in the higher universities in the world to have a education (HE) environment in the UK partner campus in both India and China. and the rapid growth of international The Student Experience competition will result in a turbulent and challenging future for the UK HE sector. Students at Lancaster University are I am confident that Lancaster University amongst the most satisfied with their will remain highly competitive as we course of any in the UK, according to engage with the Research Excellence the National Student Survey 2012. Framework, extend our international We have made considerable efforts to ambitions, and strive to provide an even reach out and attract students from a more outstanding campus and academic wide range of backgrounds and raise experience for our students. Our current their aspirations. We have a strong University strategy is clear and ambitious, Reputation and Performance record in delivering successful outreach serving us extremely well to date. There programmes and Lancaster’s generous Our competitive position in the league tables have been huge changes over the last few and flexible package of financial support years which means it is timely to refresh is largely due to an ambition to excel on all aims to attract and retain the most able the measures used spanning teaching, our strategy. Discussions over the option students no matter what their of a closer alliance with the University of research, facilities and student satisfaction. circumstances. It is to our credit that We have an aggressive strategy of Liverpool helped us to examine Lancaster’s Lancaster recruits almost 90% of students ambitions, our strengths, what we stand continuous improvement and this will drive from state schools, has relatively low our mission to offer our students excellent for and of course our vulnerabilities in the dropout rates and does well for retention of increasingly globalised and competitive value for money and to build upon our students against national benchmarks. Our exceptional research reputation. HE world. During the coming year we will supportive and popular college system, set out our new vision. I am sure we will Overseas collaborations emphasis on pastoral care and a friendly, develop an exciting and challenging new Our overseas partnerships are an essential safe campus all contribute to this success. strategy, capitalising on our already part of our international strategy. We aim Looking forward strong position. to increase international student numbers, The University very much values its roots Some options might require some real mainly through our international in the North West and we will continue to choices about our future. Given Lancaster’s partnerships, while maintaining overall UK build our positive links to the City and the advance over the last decade, and the and EU numbers. The network of overseas wider region. Lancaster’s success quality throughout the institution I look teaching partnerships is a key component depends on the talented, creative and forward to this debate. of Lancaster’s global outreach and committed people who work hard to make commitment to internationalisation. this University so special and distinctive. Lancaster degree programmes are A snapshot of these successes, be it on currently taught in collaboration with local an individual level or as part of an institutions in India, Jordan, Kazakhstan, important collaboration, are covered in Malaysia and Pakistan, and all these this report. We are also grateful for the partnerships are important to us. This year, immensely valuable contributions made Professor Mark E. Smith we announced that Lancaster University to Lancaster by our alumni and many Vice-Chancellor and Guangdong University of Foreign other friends and supporters. Annual Report 2012 Inner_Layout 1 11/12/2012 16:57 Page 3 Report and Accounts 2012 3 PRO-CHANCELLOR’S REVIEW Now approaching its 50th birthday, Lancaster’s journey has been a remarkable one, with so many achievements to be proud of. The growth and diversity of the institution has done much to enhance the city of Lancaster and the region, and the University has established a global reputation as a centre for research, scholarship and teaching. The combined efforts of the University’s I shall be retiring as Pro-Chancellor and staff and students have led to another Chair of Council in the summer of 2013 outstanding year of achievements, after ten exciting and challenging years. accomplished under challenging As this is my last report it is instructive to circumstances. Our reputation across the reflect on the changes over that period. UK and beyond is already very strong, but We have focused on what is today called is still improving as we continue to attract the ‘student experience’ recognising that world-leading researchers. By prioritising students (and their parents and sponsors) and enhancing the student experience give us the right to exist. We have within a research-led environment we have refocused on our college system, one of created high demand for Lancaster's Lancaster’s distinctive features. We have undergraduate and graduate courses. also built on our research and teaching The University has continued to set strengths and expanded internationally. challenging targets and has successfully More prosaically (but importantly), we have managed a period of intense campus modernised our governance, updated our regeneration and improvement. In my managements systems and increased the period as Chair of Council Lancaster has focus on personal development. All these invested over £450m into its campus to changes have helped us move into the top create high quality accommodation and ten of most league tables. superb teaching, research and leisure Towards the end of Paul Wellings’ time Our strong position in major UK and global facilities for students and staff. Our as Vice-Chancellor we began to explore league tables reflects a university which commitment to lead by example has how Lancaster can survive and prosper strives to be the best at everything it does. seen award winning buildings such as in a world where quality is not enough. All of this must be achieved whilst the Lancaster Institute for Contemporary To compete with the best universities maintaining our financial discipline and Arts , Charles Carter and a range of in the world we need both quality and focus on institutional sustainability. environmental projects including biomass scale, especially in our strong science, Against a backdrop of change and heating and a wind turbine that will shortly technology and environment subjects. uncertainty this year the University grew become operational. 2011/12 saw the first We have shared ideas with other like- by 2.1% and returned a 4.5% surplus. year of operation of our Sports Centre - minded universities; our discussions with Lancaster University’s credit rating has a flagship building at the main entrance to Liverpool taught us much about ourselves. been upgraded to A+ with a ‘positive the campus. Demand from students, staff The task of setting our strategic direction outlook’ by Standard and Poor's. Our and the community to use this facility has for the coming years has now passed to financial discipline will assist Lancaster in exceeded all projections and it has Professor Mark Smith and will pass to my facing the substantial financial pressures enhanced greatly our commitment to successor. I wish them well and offer my which are expected around payroll, fitness and wellbeing. heartfelt thanks to everyone who has pensions, infrastructure and energy costs. Council has monitored the University’s contributed to the success of Lancaster investments to ensure best value for University. money and delivery of our mission in line with our financial strategy.
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