Annual Report and Financial Statements 2018/19 Harper Adams University Charity Number: 1147717 Company Number: 08049710 CONTENTS Chief Executive's Report _________________ _ __________________2 Strategic Review ...--- ---····························..·······...... 10 _ __________ 14 Report of the Governors and Corporate Governance Statement... ..................... ______ _________.. 20 Independent Auditor's Report to the Board of Governors of Harper Adams University _____ Statement of Accounting Policies ____ _ ____................ 22 Consolidated Statement of Comprehensive Income and Expenditure····-----------·------ .......... 26 Consolidated and University Statement of Changes in Reserves _______ ... 27 Consolidated and University Balance Sheet ............................ ________ _ ______ 28 Consolidated and University Cash Flow·------------- .......... 29 Notes to the Financial Statements....____________ _ _______......... 30 Glossary of Terms ........... ----------------........ 47 11Page Charity Number: 1147717 Company Number: 08049710 Chief Executive's Report or were dose to being delivered. Our scrutiny of progress Harper Adams University delivers higher education in support against our academic and institutional objectives, and the !ink of the agricultural, agricultural engineering, food science and between this work and our regular reviews of corporate risks, technology, environmental science, veterinary science and enable us to ensure that we achieve our targets and land-based sectors. It is one of only five UK HE institutions effectively deliver our strategy. specialising in these subject areas. The university offers multi­ disciplinary courses that provide a firm grounding in science External Policy Environment and technology to meet the needs of industry, and to help create professionals able to deal with the application of The policy environment over the last year has continued to science in the production of food, the management of natural undergo significant change. As the sector's new regulator has resources and the delivery of renewable energy. The concluded the process of registering providers of higher university is also an important source of independent education it is moving to the full regulatory framework which knowledge, advice and education to those already working in commenced on 1 August 2019. We expect there to be new these vital sectors and it undertakes applied research of guidelines and monitoring requirements arising from the benefit to industry and society. Furthermore, it has a key role work of the Office for Students in the coming months. to play in a rapidly developing policy environment where its subject base is of increasing importance to the UK economy, At present, there is a strong focus on access and participation, to the challenge of achieving global food security and to the and our first five-year Access and Participation Plan (APP) was future of the UK in the post-EU era. submitted to the OfS at the end of May 2019. It contains a number of stretching targets for the University in the period Our current Strategic Plan covers the period from 2015 to from 2020-2025, not least because of our rural operating 2020. Our strategy has five objectives: environment and the nature of the rural population from which we draw the majority of our students. We have stressed 1. Education: We will grow the population of the University to the OfS that more needs to be done to provide better data to 3,000 FTE students, whilst attracting those already in and understanding of the needs of rural communities in its the professions who need to extend their understanding access and participation work and we are keen to work with and expertise, thereby providing a community of !earning the regulator to ensure that rural disadvantage can be that will appeal to rural and urban students from the UK properly identified and addressed. and overseas. The need to demonstrate good governance is another area 2. Engagement: We will enhance our engagement with of interest for the OfS, so it was pleasing to note that our industry and local enterprise partnerships to help grow Board's effectiveness review, undertaken during the year with our capacity for education, research and knowledge the assistance of AdvanceHE, provided some very positive exchange. feedback on our performance when benchmarked against other institutions using the AdvanceHE survey. Our Board and 3. Research: We will move from a position where over 50% executive team work closely, with proper challenge where of our research in the 2014 Research Excellence necessary, to ensure that we continue to provide high quality Framework was assessed as internationally excellent or education and research. This was reflected in our survey world leading to a rating of over 60% for these categories results. in the next Research Excellence Framework. The continuing use of Longitudinal Employment Outcome 4. Influence: We will enhance the role and reputation of (LEO) data as a way of assessing graduate outcomes from Harper Adams as a contributor to national policy higher education providers and by subject of study continues formulation and delivery to improve rural e.conomic to cause concern because of the lack of a rural context in the development and the UK's contribution to global food dataset. While this is likely to emerge over time, we remain security. concerned that the current approach does not always reflect the real experience of graduates, or their employers, in some subject areas. In the July 2019 LEO data release the 5. Efficiency: We will maintain our expenditure on University's graduates continue to perform well three and five administrative activities below the median, when benchmarked against other small and specialist UK years after graduating, but, overall, the agriculture and related subjects group continues to appear near the bottom higher education institutions, in order to allow us to focus resources, including new technologies, on efficient of the table for income by subject. This is not only a structural issue for the industry, but also a reflection of the need for teaching and the support of our students. improved data, to put graduate salaries into context with the rural areas in which most of our graduates' work. The Strategic Plan acts as a framework to guide our academic activities and to focus on areas where further efficiencies can be delivered. Each year we produce a Corporate Planning The former Secretary of State for Education made a point this year of highlighting concerns that he wished the OfS and the Statement that helps put our strategy into operation and sector to address. One of these was grade inflation in degree which provides a means to monitor progress via the Board of Governors, the Academic Board and their committees. The results. We took part in the 2018 round of the Teaching Excellence Framework {TEF) partly because it included an Corporate Planning Statement for 2019/20 was approved by the Board of Governors in July 2019. At the same time, a final assessment of degree outcomes, and therefore provided external validation of the high standards that we maintain in progress report on the Statement for 2018/19 was assessed. our awards. As reported last year, we achieved a Gold Almost a!I of the objectives for the year had been delivered Z!Page Charity Number: 1147717 Company Number: 08049710 outcome in the TEF that year, an award valid until 2021. We other external factors. We recruited 603 home await the outcome of the independent review being undergraduates, plus international students. We have been conducted by Dame Shirley Pearce which will help determine actively addressing the increased competition for domestic the way forward for the TEF in years to come. students in the higher education system and have seen an improved outcome for undergraduate student recruitment in The Augar Review of Post-18 Education and Funding our 2019 intake. We launched several degree apprenticeship reported during the year with a number of recommendations programmes in 2018/19 which, with 26 entrants, offset the that could impact upon the financing of the higher education continuing pressure on undergraduate recruitment. system. At the time of writing it remains to be seen how the Postgraduate student recruitment in 2018 was also positive, Government will respond to the report, At the start of the with student numbers at 317, and research student numbers 2018/19 academic year we were able to engage with officials remained steady at 61 during the year. We continued our from the DfE supporting the Review Panel, ensuring that their focus on student retention and success during the year, with view of higher education took account of the technical, a Student Success and Retention Committee that has vocational and academic components that are drawn achieved good outcomes for our students and for the together in many smaller, specialist universities, to the benefit University. of their students and employers of their graduates. Harper Adams was the joint top-ranked Modern University in Like other post-92 universities, we were disappointed to the Times and Sunday Times Good University Guide 2019 and receive the news that the Government was not prepared to was also the highest placed Modern University in the 2020 fund a substantial, and relatively sudden, increase in Teachers Complete University Guide, rising 21 places in the main Pension Scheme employer contributions from 1 September league table to break into the top 30 for the first time.