financial statements 2015/16€¦ · financial statements for the year ended 31 july 2016...

FINANCIAL STATEMENTS 2015/16

Page

Introduction:Asuccessfulyear................................................................ 3

Financialhighlights................................................................................... 4

Committeemembers............................................................................... 5

Strategic report

Strategy2020.................................................................................... 7

Advancingourstrategy:Studentexperience...................................... 8

Advancingourstrategy:Researchandknowledgeexchange............. 9

Advancingourstrategy:Infrastructureandservices.......................... 10

Advancingourstrategy:External...................................................... 11

Ourstaff........................................................................................... 12

Ourstudents.................................................................................... 13

Ourfinances..................................................................................... 14

Financialoutlook.............................................................................. 15

Publicbenefit................................................................................... 16

Otherkeydevelopments.................................................................. 17

CorporateGovernanceandInternalControl........................................... 18

IndependentAuditors’Report................................................................ 22

Financial statements for the year ended 31 July 2016

ConsolidatedandUniversitystatementsofcomprehensiveincomeandexpenditure............................................ 24

ConsolidatedandUniversitystatementsofchangesinreserves........................................................................... 25

ConsolidatedandUniversitybalancesheets.......................................... 26

Consolidatedcashflowstatement......................................................... 27

Statementofaccountingpolicies...................................................... 28-30

Notestothefinancialstatements...................................................... 31-53

Contents

3

OxfordBrookesUniversityhascontinuedtosucceedacrossanumberofstrategicpriorityareasoverthelastyear.

Wehaveagreednewresearchandinternationalstrategieswhichsetoutourambitionsintheseareasforthenextfiveyears.Inresearchterms,wearekeentobuildonthemanysuccessesoftheResearchExcellenceFramework(REF)2014result.TheintroductionofournewResearchExcellenceAwardsareaclearsignalofthisandthegrowingresearchstrengthacrossarangeofdisciplinesatOxfordBrookes.Throughtheseawards,weareinvestinginresearchersaimingtobesubmittedtothenextREFwithworld-leading4*outputsorimpactcasestudies.

OurratingbytheTimes Higher Educationasoneoftheworld’stopuniversitiesforitsinternationaloutlookispleasing,butwearekeentodomore.Assuch,bothstrategiesalsofocusontheimportanceofforginguniversity-level,multi-dimensionalstrategicpartnershipsacrossarangeofdisciplinesandthiswillcontinuetobearealareaoffocusoverthecomingyear.

Our2015successinreachingtheupperquartileintheNationalStudentSurveyforoverallstudentsatisfactionwasalsoarealachievement.

Ourstudentscontinuetomakeusproudnotonlythroughtheiracademicendeavoursbutalsothroughthegreatthingstheydooutsideoftheirstudies.ThisrangesfromdozensofundergraduateandpostgraduatetaughtstudentspresentingtohundredsofvisitorsatourinauguralGetPublished!StudentResearchConferenceinApril,toourLawstudentswinningtheNationalMootingCompetitionforthethirdtimeinfiveyears.

InOctober,newremitsforthefourProVice-ChancellorDeanroleswereannounced.Thesenewcross-universityportfoliosaligncloselytoourprioritiesandstrategicareasoffocusoverthecomingyearsandmoredetailsofeachcanbefoundinthisreport.

OxfordBrookeshasmarkedtwoimportantanniversariesoverthelastyear:wecelebratedboththefinalmonthsoftheUniversity’s150thanniversaryand125yearsofnurseeducationinOxford.The150thanniversaryperiodhasbeenhugelybeneficialinremindingusofourhistory,celebratingourcurrentsuccessesandlookingforwardtothenextchapterinthisinstitution’sstory.Fromeventsforstaff,studentsandthelocalcommunitytothepublicationofabookonourmodernfounder,JohnHenryBrookes,writtenbyalumnusandfriendoftheUniversity,BryanBrown,thecelebrationshavehadawide-rangingimpact.

The125yearsofnurseeducationinOxfordcelebrations,inpartnershipwithlocalhealthtrustsinbothOxfordandattheUniversity’sSwindonCampus,havealreadyseenahostofeventstakingplace.ActivitieshaveincludedalectureseriessponsoredbyHealthEducationThamesValley,socialevents,exhibitionsandfundraisingactivities.

ThisyearhasalsoseenourSwindonprovisionrelocatetoanewcampus.WehavedevelopedastrongstudentcommunitythatcontinuestogrowinSwindonandthisnewcampusreallysupportsthequalityofourgraduates.IamdelightedthatLordJoelJoffe,long-timeSwindonresidentandformerhumanrightslawyer,agreedtousnamingthebuildinginhishonour.ThisnewphysicalpresenceisjustoneofthewaysweareinvolvedinSwindonandIremainproudofoursponsorshipoftheUniversityTechnicalCollege,ourpartnershipwithSwindonCollegeandthesignificantlevelsofwideningparticipationworkweundertakeinthetown.

OxfordBrookestesteditsstrengthinthemarketplacethroughaprivateplacementexerciseearlierthisyearandwewerepleasedwiththevalueattachedtotheUniversity.Thisprocessresultedinsecuring£60millionoffunding.

Finally,itwouldnotberighttoendwithoutmentioningthegreatsuccessesofourBoatClubthisyear.ThemenbecamethefirstuniversitycrewtowintheHeadoftheRiverinover50yearsandthewomenalsohadtheirhighesteverfinishattheWomen’sHeadoftheRiverinMarch.InJune,theclubhadtheirbestyeareverattheBritishUniversitiesandCollegesSportRegatta,themen’seightwontheTempleCupChallengeoverHarvardUniversityatHenleyRegattaand,inanunprecedenteddoublevictory,boththemen’sandwomen’seightsbecameEuropeanChampionsattheEuropeanUniversitiesGames.Ofcourse,thishasbeencrownedbythefactthatthreeOxfordBrookesalumnitookhomeOlympicmedalsaftercompetingintheRio2016OlympicsandourChancellor,DrKatherineGraingerCBE,becametheonlyBritishfemaleOlympicathletetowinmedalsatfiveconsecutiveOlympicgames.

ThesedevelopmentsandachievementsaresourcesofgreatprideforOxfordBrookesUniversityaswecontinueourtrajectoryofsuccess.

PROFESSOR ALISTAIR FITT VICE-CHANCELLOR

Introduction: A successful year

4

The University group* highlights to 31 July 2016:

Financial performance

n Generatedincomeof£192.6m(£181.1m)

n Increasedincomeby£11.5mor6.4%

n Expenditureincreasedby£3.0mor1.7%

n Generatedanoperatingsurplusof£12.5m(£4.0m)

n Generatedanetinflowofcashfromoperatingactivitiesof£33.7m(£29.9m)

n AchievedallfinancialtargetsandKPIs

Financial strength

Atthe31July2016theUniversitygrouphad:

Cashandshort-termdepositsof£52.6m(£30.6m)

Netcurrentassetsof£29.7m(£3.5m)

Totalnetassetsof£135.8m(£161.1m)

PensionSchemedeficitsof£125.3m(£82.9m)

Investments and borrowings

DuringtheyeartheUniversitygroup:

Invested£20.4minfixedassets(£9.7m)

Refinancedloansof£60mviaprivateplacement

*OxfordBrookesUniversityandOxfordBrookesEnterprisesLimited

Financial highlights

5

Committee membersBoard of Governors (Trustees)

ThemembershipoftheBoardofGovernors,whoarealsoTrustees,fortheyearended31July2016anduptothedateofsigningthefinancialstatements,wereasfollows:

Independent Members

AlysonCoates Non-executiveDirector,OxfordHealthNHSFoundationTrust

GeoffreyDonnelly(Chair)(until31/07/16) VariousdirectorshipsintheHEsector

JohnGuy Non-ExecutiveChairman,SurreyHeathClinicalCommissioningGroup

MartinHowell Chairman,OxfordHealthNHSFoundationTrust

RobertKirtland ManagingDirector,CritchleysCharteredAccountants,Oxford

LeslieMorphy(Chairfrom01/08/16) Non-ExecutiveDirector,HomeGroup,Non-ExecutiveDirector,SurreyandBordersPartnershipNHSFoundationTrust,variousothertrusteepositions

KatherineRyan Headteacher,MatthewArnoldSchool

LouiseThomas Director,ThomasDesignRegeneration&Consultation

PhilipShadbolt Chairman,ZetaAutomotiveLtdandManagingDirector,ZetaSpecialistLighting

Co-opted Members

AndrewPedersen(until30/06/16) PresidentoftheStudents’Union,OxfordBrookesUniversity

ElenaSaldañaQuintans(from01/07/16) PresidentoftheStudents’Union,OxfordBrookesUniversity

SusanHowdle Chair,WestminsterCollegeOxfordTrustLtd

CliveWildish(until31/07/16) ProgrammeLead–ProfessionalDevelopmentProgrammesinManagement&Leadership,OxfordBrookesUniversity

RicardoAssisRosa(from01/08/16) SeniorLecturerinArchitecture:Design,OxfordBrookesUniversity

RhiannonLassiter(from01/10/15) MarketingManager,SpecialistLecturer,OxfordBrookesUniversity

Ex-Officio Member

ProfessorAlistairFitt Vice-Chancellor,OxfordBrookesUniversity

Finance and Resources Committee

GeoffreyDonnelly(until31/07/16) Governor

AlysonCoates(Chairuntil31/07/2016) Governor

RobertKirtland(Chairfrom01/08/2016) Governor

LeslieMorphy(from01/08/2016) Governor

LouiseThomas Governor

Audit Committee

JeremyDawson Co-optee(Partner,DawsonPartnership)

JohnGuy(Chairuntil31/07/16) Governor

MartinHowell Governor

KatherineRyan(Chairfrom01/08/16) Governor

LucyWeston Co-optee(Vice-chair,SohaHousing)

CliveWildish(until31/07/16) TeachingStaffGovernor

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Remuneration Committee

AlysonCoates Governor

GeoffreyDonnelly(until31/07/16) Governor

JohnGuy Governor

SusanHowdle(Chair) Governor

Nominations Committee

ProfessorAlistairFitt Vice-ChancellorandEx-officiomember,BoardofGovernors

GeoffreyDonnelly(Chair)(until31/07/16) Governor

MartinHowell Governor

RobertKirtland Governor

LeslieMorphy(Chairfrom01/08/16) Governor

Senior Management Team

ProfessorAlistairFitt Vice-Chancellor

ChrisBlackburn ProVice-ChancellorandDeanofFacultyofBusiness

CathyBurleigh(from15/09/15) DirectorofFinance&LegalServices

BrendanCasey(from30/03/16) RegistrarandChiefOperatingOfficer

AlisonCross(from01/08/16) DirectorofHumanResources

ProfessorLindaKing(until30/10/15) InterimProVice-Chancellor,ResearchandGlobalPartnerships

ProfessorLindaKing(from01/11/15) ProVice-Chancellor,ResearchandGlobalPartnerships

ProfessorJulieMcLeod ProVice-Chancellor,StudentExperience

ProfessorJuneGirvin ProVice-ChancellorandDeanofFacultyofHealthandLifeSciences

PaulInman ProVice-ChancellorandDeanofFacultyofTechnology,DesignandEnvironment

ProfessorAnne-MarieKilday ProVice-ChancellorandDeanofFacultyofHumanitiesandSocialSciences

PaulLarge(until31/03/16) Registrar

PaulLarge(from01/04/16) DirectorofInfrastructureInvestment

Advisors

BankersBarclaysBankplcPublicSectorTeamLevel271ChurchillPlaceLondonE145HP

External AuditorsPricewaterhouseCoopersLLPCornwallCourt19CornwallStreetSnowHillBirminghamB32DT

Internal AuditorsKPMGOneSnowhillQueenswayBirminghamWestMidlandsB46GH

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TheBoardofGovernorsofOxfordBrookesUniversitypresentsitsresults,includingtheresultsofitssubsidiariesfortheyearended31July2016.TheUniversityoperateswithinthestrategydevelopedto2020andapprovedbytheBoard.Thiswasformulatedin2009-10,approvedbytheBoardofGovernorsinFebruary2010andisreviewedandupdatedperiodically.

OxfordBrookesUniversity’scharitablepurposeistheadvancementofeducation.Thekeybeneficiariesareourstudents.Throughourstudents,aswellasthroughknowledgeexchangeandothercommunityengagement,widersocietyalsobenefits.WedeliverthischaritablepurposeforthepublicbenefitbydeliveringtheUniversity’sStrategy2020,setoutbelow,andthroughspecificpublicbenefitinitiativessetoutlaterinthisdocument.

MissionOxfordBrookesUniversityiscommittedtoleadingtheintellectual,socialandeconomicdevelopmentofthecommunitiesitservesthroughteaching,researchandcreativitythatachievethehigheststandards.

ValuesInthedevelopmentandnurturingofintellectualandenterprisingcreativitywemakeourhighestcontributiontosociety.Socialresponsibilitydemandsthatallaspectsofouractivityshouldbesustainable.Equality,inclusivityandthecelebrationofdiversitymustbethefoundationforallwedo.Wewillneverbecontentwithanythingotherthanawholeheartedcommitmenttothequalityofthestudentexperience.Wewillcontinuetoenhancethevalue–andtheperceptionofvalue-ofoursocialaswellaseducationalmission.

VisionOxfordBrookesUniversitywillprovideanexceptional,student-centredexperiencewhichisbasedonbothinternationallysignificantresearchandpedagogicbestpractice.Wewillbuildonatraditionofdistinctioninacademic,professionalandsocialengagementtoenhanceourreputationasauniversitywhicheducatesconfidentcitizenscharacterisedbytheirgenerosityofspirit.

Strategic goals

Student Experience

Wewillbeauniversitythatenablesastudentexperienceofthehigheststandardpossible.

Wewill:

n Ensurethatlearningandteachingareattheleadingedgeandrelevanttocontemporarycontexts.

n Provideanenvironmentwherestudentsareproactivelyengagedinshapingtheirexperiencethroughinfluencinglearningandextra-curricularpolicy,processesandoutcomes.

Research and knowledge exchange

Wewillbeauniversitythatiscommittedtoexternallyrecognisedworld-leadingresearchwhichistranslatedanddisseminatedforthebenefitofourcommunities.

Wewill:

n Focusontheareasofresearchwhichare,orhavethepotentialtobe,recognisedasworldleadingandencouragemultiandinterdisciplinaryresearchactivityacrosstheuniversity.

n IncreasetheexploitationanddisseminationofthehighestqualityresearchandcollaborationwithotherHigherEducationInstitutionsandthepublic,privateandthirdsector.

Infrastructure and services

Wewillbeauniversitycharacterisedbyitssector-leading,highquality,sustainableandcost-effectiveservices,operatingwithinacultureofcontinuousimprovement.

Wewill:

n Manageouractivitiestoachieveself-sustainingandrobustfinancesandastrongpositionrelativetotheHEsector.

n Developandenhancethequalityandefficiencyoftheuniversity’sinfrastructureandservices.

External

WewillbeauniversitydedicatedtoimprovingthehumanconditioninOxfordshireandaroundtheworld.

Wewill:

n Harnesstheenterprisingcreativity,knowledge,andcommitmentoftheuniversity’sacademics,staffandstudentstobenefiturbanandruralcommunitiesprincipallywithinOxfordshire.

n Furtherdevelopmutuallybeneficialpartnershipstofacilitatetheapplicationoftheuniversity’seducation,research,andknowledgetransfernationallyandinternationallyandtopreparetheuniversity’sgraduatestobeengagedglobalcitizens.

Strategic report Strategy 2020

Our guiding principles:

ConfidenceWe have confidence in our staff and students, and we know that we prepare our graduates well for a fulfilling

and valuable life. Through their success, we continue to earn our outstanding reputation.

ConnectednessOur academic excellence is underpinned by a history of learning by doing. Our connections and our Oxford roots

are fundamental to our students’ experiences and our successful future.

Generosity of spiritWe believe people flourish in a culture of respect and

support, where we celebrate difference and thrive on each other’s success. Our students manifest a generosity of

spirit as they progress in the world.

Enterprising creativityWe’re adaptable and flexible, and consider a fresh

approach in everything we do – because we know our sustainability depends on a pioneering spirit.

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ThestudentexperienceatOxfordBrookesisastrategicpriorityandtheUniversityretainsastrongreputationinthisarea.

InAugust2015OxfordBrookesreachedtheupperquartilefortheNationalStudentSurveyforthefirsttime.WhilsttheAugust2016resultsareoutsideofthisreportingperiod,itisimportanttonotethatalthoughOxfordBrookescontinuestooutperformthesectoraverage,wedidnotretainourupperquartileposition.Weareworkinghardtoregainthis.

OxfordBrookesremainsdedicatedtoitsstrategiccommitmentof“providinganenvironmentwherestudentsareproactivelyengagedinshapingtheirexperience”.TheopeningofafantasticnewbuildingforourhealthcarestudentsinSwindonandsignificantongoingcampusdevelopmentinHeadingtonaspartofourtenyear£223mestateinvestmentplanclearlydemonstratehowweareinvestinginourstudentsinthisway.

Wealsoremaincommittedtoourstudentexperiencebeingatthe“leadingedge”andthisisexemplifiedbytheinnovativeprojectswhichmakeuptheProgrammetoEnhanceTheStudentExperience(PESE).

PESEisanambitiousprogrammetomeetOxfordBrookes’strategicaimsinfurtherimprovingthestudentexperience.

Lastyear,theUniversitylaunchedeightnewprojectswhichformthePESE2andalotofgoodworktookplacein2015/16.

AgreatexampleofthisistheGetPublished!projectwhichisaUKfirstinhelpingtoensureoutstandingandinspiringstudentresearchcanbesharedwiththewideaudienceitdeserves.

Dozensofundergraduateandpostgraduate-taughtOxfordBrookesstudentspresentedtheirdiverseworkattheinauguralStudentResearchConferenceinApril2016.Theirdemonstrationswereseenbyhundredsofattendeesandrangedfromtheuseoflaserstovisualiseplantresponsestopests,totherepresentationoffoodin17thCenturyDutchpaintings.

OxfordBrookesstudentsalsopresentedtheirworktoMPs,policymakers,academicsandfellowstudentsatParliamentearlierthisyearinafurthersignaloftheincreasingresearchopportunitiesopentothosestudyingattheUniversity.

AnothergoodexampleofaPESE2projectwhichhasprogressedwellrelatestomentoringschemes,whichweknowcanhaveahugeimpactonastudent’sexperienceatuniversity.

Throughaone-to-oneconnectionastudentcandeveloppersonalandprofessionalcompetenciesandexploreopportunitiesthroughthesupportandguidanceoftheirmentor.Mentoringschemescanfulfilstudents’needsinwaystheuniversitycannototherwiseeasilyprovidefor,sotheyareincrediblyvaluable.

TheSustainingMentoringSchemesprojectisfocusedonprovidingasetoftoolsandresourcestosupportexistingmentoringactivityandtoencouragenewschemestodevelop.

DirectfeedbackthroughoneoftheUniversity’snewStudentExperienceGroupsessionshasbeenimportantinshapingthisworkanddemonstratestheinfluencethatthosestudyingherehaveonkeyOxfordBrookesinitiatives.

IntandemwithourPESE2projectsweareimplementingatechnology-enhancedlearningframeworkinvestinginlecturecapturetechnologywithinteachingspaces,buildinguponoursector-leadingresearchondigitallearners.ThisisfurthertoourBrookesTeachingExcellenceFellowshipswhichcontinuetorecogniseandfosterexcellenceinteaching,whileongoinginvestmentinteachingandlearninginnovationthisyearsawMarcHowebecometheninthOxfordBrookesrecipientofaNationalTeachingFellowshipinthepastsevenyears.

WelookforwardtoseeingthecontinueddevelopmentofthestudentexperienceoverthecomingyearandfurtherworkwilltakeplaceinpreparationfortheintroductionoftheTeachingExcellenceFramework.

Advancing our strategy: Student experience

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ResearchstrengthatOxfordBrookescontinuestogrowandthisyearwepublishedourrevisedstrategyfollowingextensiveconsultation.

TheResearchandKnowledgeExchangeStrategyfocusesonthenextfiveyearswiththreestrategicobjectives.Theseare:

n Topursueandsupportresearchofthehighestqualitythatis,orhasthepotentialtobecome,recognisedasinternationallyexcellentorworld-leading.

n Topromoteandsupportcollaborationandpartnershipsacrosstheinstitutionandwithexternalpartnerslocally,nationallyandglobally.

n Toenhancetheimpactofourresearchinitsbroadestterms,andwidendisseminationofourresearchforthebenefitofourcommunities,whetherlocal,regional,nationalorglobal,includingourstaffandstudents.

WeknowfromtheresultsoftheResearchExcellenceFramework2014thatOxfordBrookesisinastrongposition,with94percentofoursubmittedresearchinternationally-recognisedorbetter.Asaresult,ourqualityrelatedresearchfundingincreasedby41percentagainstasectoraverageofthreepercentandourstrategyhighlightsourcommitmenttofurthersupportinganddevelopingbothstaffandstudentsoverthecomingyears.

ThisisexemplifiedbytheResearchExcellenceAwardswhichweannouncedinJune.ThiswillseeOxfordBrookesinvestingin23membersofstafftohelpthemtomeettherequirementsofdifferentdisciplines,providetimelysupport,aswellasfosteringinterdisciplinaryandcollaborativeresearch.

Throughtheseawards,wearesupportingresearchersaimingtobesubmittedtothenextResearchExcellenceFrameworkwithworld-leading4*outputsorimpactcasestudies.

Theirresearchrangesfromtheimpactthatrecessionshaveonstockmarketstothedevelopmentofhumanoidrobots,andfromthecomplexitiesrelatedtoterroristradicalizationtothedevelopmentofinnovativeonlineresourcesforsupportingmother-infantrelationships.

Supportfornewresearchershasalsobeenattheheartofthenewstrategy.Positiveworkhastakenplaceinfurtherimprovingour‘YourFirstThreeYears’programmetoensureanappropriatebalanceofemphasisbetweenresearchandteachingandlearning.

IthasalsobeenadvantageousthattherevisedResearchandKnowledgeExchangeStrategywasproducedintandemwiththenewInternationalStrategy.OurthreestrategicobjectivesforresearchandknowledgeexchangearethereforeallcloselylinkedwiththeUniversitybecomingincreasinglyinternationalised.

TheexistingglobalscopeofresearchatOxfordBrookeswasexemplifiedbyfourprojectstobeundertakenbyresearchersatOxfordBrookesinBrazilandMexico.AllwererecipientsofmoneyfromtheNewtonFundwhichispartoftheUK’saimtohelpwithscienceandinnovationpartnershipsthatpromotetheeconomicdevelopmentandwelfareoftargeteddevelopingcountries.

TheseprojectsareevidenceofthegrowingconfidenceandglobaloutlookofOxfordBrookesresearchwhichissettofurtherflourishinthecomingyear.

Advancing our strategy: Research and knowledge exchange

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The Estate Theestatehasseensignificantimprovementsoverthelastyear,notleastwiththerecentopeningofthenewSwindonCampus.OxfordBrookeshasmovedfromitsformerFerndaleCampusinthetown,toanew,largercampusontheDeltaBusinessPark,aspartofa£223millioninvestmentinourestateoverthenextdecade.

Thecampusfeaturesanewlibrary,highqualityteachingspaces,skillslabs,cateringfacilitiesandspacestoenhancecollaboration,researchandsupportforstudents.Thebuildinghasbeennamedafterlong-timeSwindonresidentandformerhumanrightslawyer,LordJoelJoffe.

InOxford,thefirstphaseofworkontheSinclairbuildinghasseentheSinclairAnnexredevelopedforourbio-imagingunit,housingspecialistmicroscopesandrelatedresearchlabsandstaff.

WorkhasalsostartedonthesecondfloorofSinclairtocreatebrandnewteachingandresearchlabs,alongsideatechnicalsupporthub.

TheBuckleyBuildinghasreopenedco-locatingseniormanagementcolleagues,togetherwiththeDirectorateofFinanceandLegalServicesandpartsoftheDirectoratesofAcademicandStudentAffairsandCorporateAffairs,andawellbeingfacility.Thesestaffmovesbetteroptimisespaceandcross-departmentalworkingaswellasenablingtheClericiprojecttobegininearnest.

TheClericibuilding(includingformerlibraryspaces)isbeingrefurbishedtoprovideanewhomefortheFacultyofBusiness.TheBusinessSchoolwillrelocatefromWheatleyCampusaspartofthismove,expectedintimeforthestartofthe2017/18academicyear.

AswellasthenewFacultyofBusinessspaces,theClericiprojectwillprovide31newteachingrooms,acollaborativelecturetheatre,sociallearningspacesandanadditionalgatewayintotheHeadingtonCampus.TheMainHallisalsobeingrebuiltandwillprovideaflexible,newspaceforteachingandheadlineeventslikegraduations.

Thecomingyearwillcontinuetoseeasignificantamountofworkontheestate.InadditiontothepublicationoftheUniversity’sResidentialStrategy,decisionsareduetobemadeonthesaleoftheWheatleyCampusandtherebalancingofactivitiesontheHeadingtonandHarcourtHillcampuses.

Information Systems DevelopmentoftheUniversity’sITinfrastructureandassociatedprojectshascontinuedthroughout2015/16.

ThenewProgrammeManagementOfficehasoverseenthedeliveryofsignificantprojectsduringthistime:thenewvirtualandphysicalserverinfrastructure;refreshmentofthephysicalnetworkandnetworkaccesspoints;HRsystemupgrade;managedprintservice;anewaccommodationallocationapplication;onlineapplicationforhealthcare;anewVPNforaccessingalluniversitysystemsremotely;supportingalltheoffice/teachingspacemovesacrosstheestatewithnetworkinstallations,PCsandaudiovisualequipment;newstaff/studentsmartcard.

Thefollowingprojectsarecurrentlyprioritizedfordeliveryin2016/17althoughtheforwardITInvestmentProgrammeissubjecttoannualreview:movingofsystemsandapplicationsfromunsupportedhardware;networkrefresh(bothwiredandwireless),telephones&buildingmanagementsystems,AV&supportofallassociatedstaffmovesacrossallcampuses;thecreationofanenterprisedatawarehouse;replacementofaudiovisualequipmentinteachingrooms;newtimetablingandspaceutilisationtool,guestWi-Fiaccess;returnsquality&managementsystem.

Investmentcontinuesin‘BusinessasUsual’servicedeliverytoenhancethestudentexperienceandensurethedeliveryofITthatworks.

Advancing our strategy: Infrastructure and services

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OverthepastyearOxfordBrookesUniversityhascontinuedtocontributetosociety–locally,nationallyandinternationally.

ThisyearhasseenasignificantstrengtheningoflinkswithinOxfordshireandbeyondthroughthecelebrationoftwoimportantanniversaries.

150th anniversary Thisanniversaryhasprovidedanimportantopportunitytocelebratethepast,presentandfuturesuccessofOxfordBrookesUniversitywithstaff,studentsandthelocalcommunity.

Fromacommunitypointofview,theUniversityhasheldandsponsoredanumberofeventswhichhaveenabledustosharelearningopportunities.CentraltothesewastheBrookesLiveeventheldinNovember.ForthisspecialeventweopenedthedoorsoftheJohnHenryBrookesBuildingtothelocalcommunityandshowcasedpioneeringprojectsandenterprisinginitiativesaswellasthecreativetalentsofourstaffandstudents.OtherkeyeventsincludedtheanniversarylectureseriesandourparticipationinOxford’sOpenDoorsevent.

Nowthattheanniversaryperiodhasofficiallyclosed,theUniversityisundertakingworktobuildonthislegacy.

125 years of nurse education in Oxford Foroveracentury,thecityofOxfordhasbeenhometotheworld-classtrainingofnurses.Care,dignity,compassionanddiligencearequalitiesallnursesinOxfordandatOxfordBrookeshavecarriedwiththemoverthelast125years.

The125anniversaryhascelebratedtheimportantroleofnurseeducationinOxfordinpartnershipwithlocalhealthtrustsinbothOxfordandattheUniversity’sSwindonCampus.

Aspartofthesecelebrations,anumberofkeyeventshavebeenheld,includingourcontinuedsponsorshipoftheCowleyRoadCarnival,whichallowedustoplayakeyroleinOxfordshire’sbiggestcommunityevent.Here,theUniversityjoinedthelocalhospitalsincelebratingnurseeducationinOxford,providingeducative,interactiveactivitiesandjoiningthecelebrationsintheprocession.

Wehavealsocontinuedtosupportourstudentsinmakingadifferencetosociety.Oneofourstrongestexamplesof

thisisthroughtheOxfordBrookesSocialEntrepreneurshipAwards(OBSEA),wherestudentsaresupportedtolearnmoreaboutsocialentrepreneurshipandsocialinnovation.Theyareencouragedtofindradicalnewideas,practicalsolutionsandrelationshipstoeffectivelyaddresssocialneedsandproblemsandtoturntheirideasintoaction.

In2015-16,projectshaveincluded:

n Nutri-bake – bread for life! Abreadbakingco-operativethatwilloperatewithintheshantydistrictontheoutskirtsofHuanchaco,asmallseasidetowninnorthernPeru.Thiscooperativewillemploywomenbakersandsupplynutritiousfortifiedflourloavesandrolls(madewithspecialitygrains)tohelpfeedpoorlocalfamilies.BreadsoldinHuanchaco’sshantydistrictcurrentlyconsistsofpoorqualitybleachedwhiteflourandisquiteexpensive,transportedinfromthenearbycityofTrujillo.Localpeoplehavecomeforward,identifyinganeedforalocalbakerythatproducesqualitybreadataffordableprices.

n Responsible HolidaysResponsibleHolidaysisasocialvalueprojecttoempowerriversidecommunitiesandpeopledisplacedbydaminitiativesintheSouthernAmazonregionandhelpcreatealternativesustainablelivelihoods.Theaimistodevelopeco-tourismintheRioMadeiraregionofBrazil,initiallybasedaroundbird-watchingholidays.

n Oxford Chinese cornerOxfordChineseCornerisasupportgroupforChineseparentsandchildreninOxfordwhichoffersrichandinteractivetraditionalChinesestyleactivitiesinaMandarinspeakingenvironmenttolocalfamilies,andparticularlyBritishBornChinesechildren.Theaimistonurtureandpreservecultureandtradition.Manychildrendon’tinherittheirChinesecultureorevenunderstandtheirmothertongue–Mandarin–whentheyarebornandraisedintheUK.TheactivitiesarefundedfromtheprofitsgainedbyofferingdifferentlevelsofChineselanguageandculturerelatedcoursestolocalchildrenandadultlearners.

OxfordChineseCornerhasbeengivenanawardtopursuemarketresearchandexploredemand.

Advancing our strategy: External

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Theoverallstafffulltimeequivalent(FTE)increasedslightlyfrom1,848to1,886inthelastyear,notablyinrelationtoadmissionsandprojects.Academicandseniorstaffmakeup40percentoftheworkforce.

Therewereanumberofstaffingchangesatseniormanagementlevel.Followingcompetitivesearchexercisesthefollowingappointmentsweremade:

n PaulLarge(formerlyRegistrar)tookflexibleretirementandmovedintoanewpart-timeroleasDirectorofInfrastructureInvestment.HeissucceededbyBrendanCaseyasRegistrarandChiefOperatingOfficer.

n ProfessorLindaKing(formerlyAssociateDeanforResearchintheFacultyofHealthandLifeSciences)wasappointedProVice-ChancellorforResearchandGlobalPartnerships(thelatterbeingachangetotheportfolio).

n CathyBurleighjoinedasDirectorofFinanceandLegalServiceson15September2015.

TheportfoliosfortheProVice-Chancellor(PVC)/Deanswerereviewedandrevisedtoreflectourstrategicprioritiesfortheperiodahead,asfollows:

n ChrisBlackburn,PVCandDeanoftheFacultyofBusiness:Marketing

n ProfessorJuneGirvin,PVCandDeanoftheFacultyofHealthandLifeSciences:Development

n PaulInman,PVCandDeanoftheFacultyofTechnology,DesignandEnvironment:InternationalRecruitment

n ProfessorAnne-MarieKilday,PVCandDeanoftheFacultyofHumanitiesandSocialSciences:StaffExperience

Other developments Enhancementofthestaffexperienceisanewfocus,whichcomplementsourstrengthsindeliveringanoutstandingstudentexperience.Aspartofthe150thanniversarycelebrationsin2015,theUniversitylaunchedastaffrecognitionscheme,BrookesPeopleAwards,whichcelebrateourGuidingPrinciples.Theschemewassuccessfullyrunagainin2016.Wehavealsoengagedwithexternalchartermarks(AthenaSwanandStonewall)topromoteequality,diversityandinclusion.

TheFacultyofBusinessisengagedinastaffconsultationandengagementprogramme(Realign,RepositionandRelocate)inpreparationforthemovefromWheatleyplannedfor2017toredevelopedpremisesontheHeadingtoncampus.

TheExternalRelationsDepartmentwasstrengthenedandrestructuredtosupportthe“BrookesBecause…”developmentcampaign.

TheOxfordCentreforStaffandLearningDevelopment,partoftheHumanResourcesDirectorate,isoneofthelargestandbest-regardedprovidersofstaffandeducationaldevelopmentintheHEsector,andcontinuestoplayaleadingrolewithintheUniversityintheimplementationoftheStrategyforEnhancingtheStudentExperience.

AnewHR/payrollsystemwasimplementedtoreplaceourlegacyin-housesystems.Workonstreamliningtheassociatedbusinessprocesseswillcontinueoverthecomingyear.

Our staff

13

Studentnumbers(headcount)haveincreasedby355(from17,462in2014/15to17,817in2015/16).Thisistheresultofastrategicdecisiontogrowstudentnumbersinameasuredwayinlinewiththeremovalofthesector-widecontrolsonstudentnumbers.

Themake-upofthestudentbodyhascontinuedtochange.Thereisacontinuingdeclineinthenumberofpart-timestudentsstudyingatOxfordBrookes(3,913in2015/16comparedto4,112thepreviousyear).Thisreductionintheproportionofpart-timestudentsmatchesthetrendoverthepreviousthreeyears.

Postgraduatenumbershaveremainedbroadlyconstantoverthelasttwofinancialyears,withthegrowthinoverall

studentnumbers(headcount)comingfromanincreaseinundergraduatestudents.Overtime,OxfordBrookeshasseenatrendofdecreasingpostgraduatenumbersandworkisongoingtoaddressthis.

Figurethree(below)chartsthefulltimeequivalent(FTE)ofinternationalandhome/EUstudentsovertime.ThisshowsthattheUniversity’soverallstudentFTEisatitshighestsinceitspeakin2011/12.InternationalstudentFTEhasdecreasedbyasmallmarginoverthelasttwoyearsandthisisanareatheUniversityislookingtogrowinfutureyearsthroughitsinternationalstrategy.

ThedataprovidedherehavebeendirectlysourcedfromtheUniversity’sHigherEducationStatisticsAgency(HESA)returns.FiguresforthecurrentyeararebasedonprovisionalHESAfigures.

Our students

Total Full-time Part-time20,000

15,000

10,000

5,000

02011/12 2012/13 2013/14 2014/15 2015/16*

18,42517,864 17,896 17,462 17,817

13,357 13,070 13,477 13,350 13,904

4,888 4,794 4,419 4,112 3,913

Figure 1. Total student numbers (headcount)

20,000 20,000

15,000 15,000

10,000 10,000

5,000 5,000

0 02011/12 2011/122012/13 2012/132013/14 2013/142014/15 2014/152015/16* 2015/16*

4,262

14,163

4,241

13,623

4,183

13,713

3,928

13,534

3,927

13,890

Figure 2. Undergraduate and postgraduate students (headcount)

Figure 3. Home and international students (FTE)

2,349

13,721

2,385

13,137

2,505

13,161

2,500

12,831

2,474

13,479

Postgraduate Undergraduate International Home/EU

Data source: APTTData source: HESA Return * provisional figures

Data source: HESA Return * provisional figures

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Our finances

TheUniversity’sspecifictargetsaredetailedannuallyinasetofkeyperformanceindicators(KPIs).TheUniversity’sExecutiveBoardandBoardofGovernorsmonitorachievementsinrelationtotheKPIs.ThechangeinaccountingstandardstoFRS102,hasmeantthatsomeoftheKPIsarenolongerapplicableandallKPIsrequirerestating.WheretheKPInolongerappliesareplacementKPIhasbeenprovidedwiththeprioryearalsosuppliedforcomparison.FulldetailsoftheseKPIscanbefoundinthePerformanceReportforGovernorswhichispublishedannuallyinDecember.

Financialsustainabilityhasbeenmaintained.FinancialKPItargetsinrelationtofinancialsustainabilityare:

n Toachievealevelofoperatingsurplusthatgeneratessufficientcashtoresourceagreedstrategicinvestment(iesurplusesidentifiedintheplans)–Achieved.

n Tocontainstaffcoststobelow55%ofturnoverandaimfor50%–Achieved(49.9%)

n Tomaintainnetcurrentassetsandaimforaratioofcurrentliabilitiestocurrentassetsof1:1.25–Achieved(1:1.91)

n ToachieveallloancovenantratioswithinsafetymarginsandallfinancialcommitmentswithinHEFCE’sFinancialCommitmentThreshold–Achieved.

Thesedemonstratethatallfinancialtargetsandbankcovenantshavebeenmet.

Theoperatingsurplusfortheyearwas£12.5m.

Riskmanagementatbothstrategicandoperationallevelisfullyembedded,andGovernorsactivelyparticipateintheprocess.

TheUniversityconstantlystrivestoimproveitsenvironmentalsustainabilityintheareasoftravel,buildingenergyuse,ethicalprocurement,conservationandcarbonreduction.

STRATEGIC REPORT FOR THE YEAR ENDED 31 JULY 2016

TheUniversity5yearfinancialforecastsshowcontinuedsustainablesurplusesthatreflectthelateststudentnumberforecasts,theEstatesInvestmentPlanandITCapitalplan,andagreedefficiencytargetsacrossFacultiesandDirectorates.

Key Performance Indicator 2015/16 2014/15 restated under FRS102

OperatingSurplus £12.5m £4.0m

TotalIncome £192.6m £181.1m

EBITDA £37.7m £29.9m

EBITDA% 19.57% 16.51%

Operatingsurplusasa%ofincome

6.49% 2.21%

Unrestrictedincomeandexpenditurereserveexcludingpensionreserveasa%ofincome

80.59% 75.74%

Externalborrowingsasa%ofincome

67.22% 64.40%

Gearing:borrowingasa%ofreserves

95.32% 72.38%

Netcashflowfromoperatingactivitiesasa%ofincome

16.03% 14.98%

Generalfundsasa%ofincome

16.58% 30.66%

Staffnumberaverageheadcount*

3096 2847

StaffnumberaverageFTE 1886 1848

Staffcostsasa%ofincome 49.85% 51.11%

Undergraduate student satisfaction:Withteaching 88% 90%

Withcourseoverall 87% 90%

Postgraduatestudentsatisfactionwithcourseoverall

84% 82%

Researchprojectsawardedinyear

£3.5m £3.8m

* Staff number headcount includes Associate Lecturers, staff number FTE excludes Associate Lecturers

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Financial outlook

ThisyeartheStrategicReportreplacestheOperatingandFinancialReviewasrequiredundertheHigherEducationStatementofRecommendedPracticeeffectivefromJanuary2015.Assuch,itisfocusedonarobustanalysisofcurrentperformance,strategyandfutureprospects,takingaccountoftheprincipalrisksanduncertaintiesbeingfaced.

TheUniversityisconfidentinitsforwardprojectionsassetoutinitsfiveyearplansandEstatesInvestmentPlanapprovedbyGovernorsinJuly2016.Thetrajectoryforgrowthisstrongbasedonthesurplusesgeneratedinthepastfewyears.However,itisfullyawareofthesignificantchangeagendafortheHEsectorandhasputinplacerobustprocessestomonitorandrespondtotheuncertaintiesandrisksitfaces.Thefinancialstrategyfocusesoncontinuingtogeneratestrongoperatingcashandcontrollingoperatingexpenditure,includingdelivering£6mofefficiencysavingsby2017/18.

Thereisacontinuedfocusonvalueformoney.ConsiderablelevelsofinvestmentinITprojects,inparticularinanewStudentRecordSystem,willhelpdeliversustainabilityinoperationalterms,positivelyimpactingstudentandstaffexperienceandleadingtoamuchmoreefficientoperatingmodelformanagingthestudentjourneythroughoutuniversitydepartments.

Theriskmanagementprocessthatsupportsthefinancialstrategyprovidesawide-reachingfinancialriskassessmentandevaluationofcontingencyoptionswhichismonitoredonaregularbasistoensurethatappropriateactionisbeingtakenandemergentandcontinuingrisksareadequatelycovered.ThefiveyearplansapprovedbytheGovernorsarebaseduponaprudentsetofassumptions.

TheUniversityisproactiveinitsmanagementofrisksanduncertainties.IthasestablishedaReferendumImpactAssessmentGroupandispro-activelyresearchingandmonitoringtheimplicationsforournonUKEUstudentsandstaffandpotentialimpactonresearchgrants.TheUniversitywebsiteprovidesaregularlyupdatedpageofthecurrentstatus,adviceandsupportforallinconjunctionwithaperiodicOnstreamcommunicationforstaff.

Agroupofcross-universitystafffocusonhorizonscanningacrossmultipleareas,suchaslegislativeandpolicychangesincludingthe2016/17HigherEducationandResearchBill’spassagethroughParliament,andexternaleconomicimpactsoninflation,demandandsupply,exchangeratesandpensionfundsarisingfromBrexitandotherworldwideevents.ThisisledbytheRegistrarandChiefOperatingOfficerandcommunicatedtogovernors,seniormanagersandothersasappropriate.

TheUniversityhasplanstoincreasestudentnumbersoverthenextfiveyearsinameasuredwaywhichissustainableandbuiltintoitscapacityplanningforthedevelopmentoftheestate,andisconsideredinthestrategyforprovisionofresidentialplaces.Issuesaroundensuringaffordabilityandarangeofpriceoptionsforstudentsareensuredthroughthefinancialstrategy.TheimpactthatleavingtheEUcouldhaveonstudentnumbersisalsoaconsiderationinourfutureplans.

Theambitiousestatesplan,whichrequiresinvestmentof£223moverthenexttenyears,includesdevelopmentoftheHarcourtHillcampusandclosureoftheWheatleycampusforsaleby2021-22.Theseplansareunderpinnedbycarefulfinancialplanningandthegenerationofsurplusesmodestlyrisingthrough2018-19and2019-20.

Stepshavebeentakenin2015/16totakeadvantageoftheUniversity’sreputationalstatus,economicconditionsandlowerborrowingcoststosecureborrowingatalowerratethroughaprivateplacementof£60m,replacinga£45mexistingloananda£15mrevolvingcreditfacility(RCF),savingaround£1mannuallyininterest.Ithasalsosecuredanew£25mRCFataveryfavourableratefollowingacompetitiveprocesswhichprovidesflexibilityinrelationtothetimingoftheWheatleysale.Thereiscontinuedfocusontherateandprofileofcapitalspendandcashflowrequirements,ensuringthatbankcovenantsarealwaysmet.Thehighlevelofcashbalancesatyearendreinforcesfurthertherobustnessofthefuturecapitalinvestmentplans.Followingthevaluationexerciseundertakenacrosstheestatein2015/16,theUniversityhasincreasedthevalueofthelandby£73.6m.Thisgivesaddedstrengthtothebalancesheet.

Thereareinitiativestoincreasetheintensityandeffectivenessofmarketingtoreachourinternationalandpostgraduatepotentialintake,andworkisbeingcarriedouttoanalysethecompetitormarkettoensurethatourofferingisbothattractiveandhighlycompetitiveandtoincreasenumbersinthesekeyareas.

WhilsttheUniversityhassignalledthroughitswebsiteitsintentiontoincreaseitsfeesinlinewithHEFCEguidancefrom2017,ithasactedprudentlyinnotbuildingthisintofutureforecasts,withoutfurtherunderstandingthenewoperatingmodelforqualityassessment,theAnnualProviderReview(APR)anditsrelationshipwiththeTeachingExcellenceFramework(TEF).However,itistakingactiontoensurethatitmeetsthequalitystandardsandassurancerequirementstobeabletoraiseitsfees.

Uncertaintiesaroundtheimpactofstudentfeesandloansonthetakeupofnursing,midwiferyandalliedhealthcoursesarefactoredintothefutureplansandwillbemonitoredcarefully,alongsidethepotentialimpactontheuptakeofplacesatthenewSwindonsite.

Overall,theUniversityhashadahighlysuccessfulyear,butgiventheveryuncertainroadahead,itisconfidentthatitscontinuedfocusonprudenceandstrongfinancialperformancewillhelptounderpinitsfinancialsustainabilityandsuccessintothefuture.

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Public benefit

InmakingdecisionsontheUniversity’sactivities,thegovernorshavegivendueregardto,andtakenintoaccount,theCharityCommissionguidanceonpublicbenefitinexercisingtheirpowersandduties.Asanexemptcharity,providingHigherEducationandresearch,OxfordBrookesUniversity’scharitablepurposeistheadvancementofeducation.Thekeybeneficiariesareourstudents.Throughourstudents,aswellasthroughknowledgeexchangeandothercommunityengagement,widersocietyalsobenefits.

AlargenumberofthewaysinwhichOxfordBrookesUniversitymeetsitscharitablepurposeandobjectivearesetoutintheprevioussections,relatingtothedeliveryoftheStrategy2020.However,otherareasofimportantactivityinadvancingeducationaresetoutbelow.

Encouraging progression to university for under-represented groups OxfordBrookescontinuestodeliveracomprehensiveprogrammeofactivitytoraiseawarenessofhighereducationandtosupportstudentsfromunder-representedgroups,whohavetheacademicabilityandpotentialtosucceed,moveontouniversity.Theactivitiesfor2015/16areoutlinedbelow.

InpartnershipwithlocalschoolsandcollegesinOxfordshire,theoutreachteamworkedwithprimaryschoolstudentstomakethemawareofhowuniversityfitsintheireducationjourneyandtohelpthemmanagetheirtransitiontosecondaryschool.Workwithstudentsinsecondaryschoolandfurthereducationcollegesincludedarangeofon-campusandin-schoolorcollegeactivitiesincludingtalks,workshops,mentoring,residentialsummerschoolsandaconferencedesignedtosupporttheprogressionofstudentsofblackandminorityethnicheritage.

OneofourflagshipprogrammesisBrookesEngage,an18-monthprogrammeofmonthlyactivitiesdesignedtohelpstudentsinYears12and13tomakeasuccessfultransitiontouniversity.ThefirstBrookesEngagecohortgraduatedinJulyand78percentofthestudentswhotookparthavesincemovedontouniversitythisSeptember.

InadditiontotheworkdeliveredbyOxfordBrookes,theUniversityalsosupportsourcollaborativepartnershipwithBucksNewUniversity,theUniversityofOxfordandReadingUniversitytodeliveranintegratedprogrammeofoutreachundertheStudyHigherbanneramongschoolsinOxfordshire,BuckinghamshireandBerkshire.

Wearelookingtocontinueandbuildonthisworkinthecomingyears.OurcollaborativepartnershipStudyHigherhasbeensuccessfulinitsbidtosecurefundingfromtheHigherEducationFundingCouncilforEngland(HEFCE)tohelpincreasethenumberofyoungpeoplefromdisadvantagedbackgroundsinHigherEducation(HE).

Thepartnership,whichisledbyOxfordBrookesUniversityandmadeupofuniversitiesandfurthereducationcollegesacrossOxfordshire,Buckinghamshire,BerkshireandSwindon,hasbeenawarded£3.4millionovertwoyears,aspartofHEFCE’sNationalCollaborativeOutreachProgramme.

Thepartnershipwillusethefundingtoworkcollaborativelyonawide-rangeofoutreachactivitieswithtargetedschoolsandcollegesacrosstheregiontohighlightopportunitieswithinHE.Thisincludesaprojecttoencouragewhite,workingclassboystoprogresstoHE,increasedprovisionofinformationandadviceforstudentsprogressingfromvocationalqualifications,andacontinuedfocusonsupportingstudentswithcaringresponsibilities.

Providing alternative ways to access Higher Education OxfordBrookesUniversityworkswithlocalfurthereducationcollegesthroughourAssociateCollegePartnerships(ACP).ThisenablestheUniversitytoprovidealowcostrouteintohighereducationandofferopportunitiestoattainqualificationsclosertohomeinanenvironmentthatstudentsfromunder-representedgroupsoftenfindmoreaccessible.

ThroughtheACP,studentscantop-upfromaFoundationtoaBachelor’sdegreeatOxfordBrookesbutwearealsoincreasinglyofferingtheopportunitytodoentireBachelor’sdegreeprogrammesatourpartnercollegeswhilstassuringtheeducationalprovisionisatleastequivalenttotheUniversity’sdirectprovision.

Financial support OxfordBrookesUniversityannuallyagreesthefundingitwillprovidetosupportstudentsrequiringfinancialsupportduringtheirstudieswiththeOfficeforFairAccess(OFFA).

During2015/16financialyear,OxfordBrookesprovidedthefollowingsupport:

n OxfordBrookesBursariesandScholarships£3.6mto2,429students

n Feewaivers£1.5mto845students

n Hardshipfund,disabilityaidandSpringHillfund£0.7m.

Sponsoring other educational establishments TheUniversitycontinuestosupportTheOxfordAcademyinourroleassponsorandworkscloselywiththeschooltodeliveraprogrammeofintegratedsupportdesignedtoraiseattainmentandincreaseprogressiontohighereducation.Inadditiontostudentsparticipatinginanestablishedprogrammeofoutreachactivity,theUniversityalsodeliversanintensiveprogrammeofone-to-onesupport.

Theschoolhasachievedasignificantimprovementinthenumberofstudentssecuringaplaceatuniversityin2016with42percentofYear13studentsmovingontheuniversitythisyear;anincreaseof11percentfrom31percentin2015.

OxfordBrookesisalsoco-sponsoroftheUniversityTechnicalCollege(UTC)inSwindon.TheCollege,aspecialistengineeringacademyfor14-19yearolds,openedin2014andisjointlysponsoredbyJohnsonMattheyFuelCells.ItaimstoimprovethesecondaryeducationofferinSwindon.

UTCSwindon’sfirstA-levelstudentshaverecentlycelebratedtheirresults.Inadditiontoa100percentpassrateinallA-levelsubjects,24percentofstudentsinlevel3engineeringachievedthreeDistinctionstars.

17

Other key developments

Strategic portfolios TheportfoliosfortheProVice-Chancellor(PVC)/Deanswerereviewedandrevisedin2015toreflectourstrategicprioritiesfortheperiodahead.Theseportfoliosare:developmentandalumnirelations,internationalstudentrecruitment,marketingandrecruitmentandstaffexperience.Workhasbeenundertakenineachoftheseareas.

Development and alumni relations InadditiontotherestructureoftheExternalRelationsteamtostrengthenkeyfunctions,anewCaseforSupporthasbeencreatedfortheUniversity:‘Brookesbecause…’

ThisnewstrategyencouragesbothfinancialandotherformsofsupportfortheUniversityandhasthreekeystrands.

n Transforming lives by breaking the barriers to educationWewillcontinuetoremovefinancialbarrierstoeducationthroughfundraisingforbursariesandpostgraduatescholarships.

n Inspiring students to become the best they can beWewillenhancewaysthatouralumniandothersupporterscangetinvolvedinthelifeoftheUniversity.Thiswillinclude,forexample,offeringvolunteeringopportunities,workplacementsorinternships,becomingamentororparticipatinginadvisoryboards.

n Finding solutions to world problems Wearekeentoencouragesupportforourexcellentresearchandarefundraisingforanumberofresearchprojectsunderfourbroadheadings:health,technology,environmentandhumanity.

International student recruitment ThecontinuedinternationalisationofOxfordBrookesisanessentialelementoftheUniversity’sdevelopment,asisourabilitytocompeteeffectivelyinglobalmarkets.

TheBoardofGovernorshasapprovedtheInternationalStrategy2016-2020.

Ourthreenewstrategicobjectivesare:

1. TosecureandincreaseOxfordBrookes’shareoftheinternationalstudentrecruitmentmarket.

2. ToestablishtheUniversity’sinternationalstrategicpartnershipsthatoperateacrosstheuniversityandsupportthedevelopmentofaworldwidepresenceacrossarangeofareas.

3. TocontinuetoenhancetheinternationalstudentexperienceandinternationalisationwithinpoliciesandpracticesoftheUniversity

Marketing and recruitment Theoutcomesofaninternalauditintomarketinghasproducedaseriesofhelpfulrecommendations,whicharecurrentlybeingtakenforward.TheUniversity’sStrategicMarketingGroupplaysakeyroleinjoiningupmarketingactivitiesacrossOxfordBrookesandaseriesofbusinessobjectivesarecurrentlyunderdevelopment.

Inaddition,responsibilitiescurrentlysittingwithintheDirectorateofCorporateAffairswillbereallocated.AnewDirectorofMarketingandCommunicationswillberecruitedtotakeforwardthisimportantareaofuniversityactivityandtheStrategicandBusinessPlanningOfficewillmovetoreportdirectlytotheUniversity’sRegistrarandChiefOperatingOfficer.

Staff experience Asummaryoftheactivitiesundertakeninthisareacanbefoundinthe‘ourstaff’section.

Social responsibility Inthelastyear,wehavemovedawayfromNetPositiveImpact(NPI),theformerapproachtosustainabilityatBrookes,andtheCorporateResponsibilitySteeringGroup(CRSG)hasbeenreplacedbytheSocialResponsibilitySteeringGroup.

AnewSocialResponsibilityFrameworkisbeingdevelopedwhichrepresentsabroaderunderstandingofsocialresponsibilityfocusingonfourareas:

1) SociallyResponsibleStudents

2) EngagedandFulfilledStaff

3) AValuedPartnerinourCommunitiesandWiderSociety

4) SustainableOperations

TheSocialResponsibilityFrameworkaimstobettercommunicatewhattheUniversitystandsforandbringstogetherteamsanddepartmentstopromoteacollaborativeandcoordinatedapproachtotheUniversity’ssocialresponsibilityefforts.TheworkisbeingledbytheCSREngagementOfficerandissupportedbythenewlyestablishedSteeringGroupandWorkingGroup.

TheFrameworkisnearlyfinalisedandthefirstsetofpriorityprojectsarebeingdevelopedwhicharedistinctivetotheUniversity,raisetheprofileofexistingactivitiesandsetexcitingnewtargetstoenhancetheUniversity’sreputationasasociallyresponsibleorganisation.

SignedonbehalfoftheBoardofGovernorsby:

LeslieMorphyChairofGovernors

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Corporate Governance and Internal ControlIntroduction TheUniversityiscommittedtobestpracticeinallaspectsofitscorporategovernanceandhasregardtothevoluntaryGovernanceCodeofPracticecontainedintheCommitteeofUniversityChair’s‘GuideforMembersofHigherEducationGoverningBodiesintheUK’,publishedinMarch2009andrevisedas’TheHigherEducationCodeofGovernance’inDecember2014.

Thecodeidentifiessevenprimaryelementsofgovernancethatunderpinthevalueandbeliefsarticulatedinthe‘NolanPrinciplesofpubliclife’withtheadditionofeightaimsandprinciplesparticulartothenatureofHigherEducation.TheUniversityisconfidentithasinplacealloftheprimaryelementsandmeetstherequirementsofthesupporting‘must’statementsthatprescribeessentialcomponentswithineachelement.

ThesummarybelowdescribesthemannerinwhichtheUniversityhasappliedtheprinciplessetoutintheCombinedCodeonCorporateGovernanceissuedbytheLondonStockExchangein2010insofarastheyrelatetouniversities.Itspurposeistohelpthereaderofthefinancialstatementsunderstandhowtheprincipleshavebeenapplied.

The Board of Governors TheBoardofGovernors,whichmeetsformallyfivetimesayear,isresponsiblefortheUniversity’slong-termobjectivesandforstrategiesinrelationtotheeducationalcharacterandmissionoftheUniversityandforprovidingoverallfinancialandorganisationalcontrol.Theboardcomprisesnine(non-executive)governors,theChiefExecutive(theVice-Chancellor),twogovernorsrepresentinguniversitystaff,thePresidentoftheStudents’UnionandthechairoftheWestminsterCollegeOxfordTrustLtd.Thereisaclearseparationoftheroleofthenon-executiveChairfromthatoftheVice-Chancellor.TheVice-ChancelloristheaccountableofficerresponsibleforsatisfyingtheBoardthatallconditionsofreceivingandusinggrantaidfromHEFCEhavebeenmet,aspertheMemorandumofAssuranceandAccountabilitywithHEFCE.TheUniversity’sconstitutionplacesresponsibilityfortheUniversity’soperationswiththeVice-Chancellorwhoastheaccountableofficer,supportedbytheseniormanagementteam,implementstheBoard’spoliciesanddevelopsandmanagestheUniversity’sbusiness.

AmajorityoftheBoardmust,bylaw,beindependentoftheUniversity,andtheybringwiththemawealthofexpertisefromtheirrespectivefieldsofbusinessandprofessionalactivity.BoardmembersareappointedinaccordancewiththerequirementsoftheEducationReformAct1988andappointmentprocessesandtermsofofficearelaidoutintheproceduresfortheappointmentofGovernorsadoptedbytheBoard.Thenormaltermofappointmentisfouryears,afterwhichmembersmaybeeligibleforreappointment.Noboardmembermayserveformorethantwoconsecutivetermsoffouryears,otherthantheVice-Chancellorandthestudentgovernor,whomayremainmembersaslongastheyholdthepositionofVice-ChancellorandPresidentoftheStudents’Unionrespectively.TheStandingOrdersoftheBoardmakeprovision,byresolution,fortheextensionofamember’stermofofficebeyondthenormallimitofeightyearswherethatisnecessarytoallowthemembertoserveamaximumtermoffouryearsaseitherChairorDeputyChair.

Senior Management Team and Executive Board TheSeniorManagementTeamoftheUniversitycomprisestheVice-Chancellor,twoProVice-Chancellors(PVCs)withspecificresponsibilityfor,respectively,thestudentexperienceandresearchandglobalpartnerships,theRegistrarandChiefOperatingOfficer,thefourPVCDeansofFaculty,theDirectorofFinanceandLegalServices,theDirectorofInfrastructureInvestmentandtheDirectorofHumanResources.Theteammeetsformallyonafortnightlybasis.

TheTeamalsomeetswiththeAssociateDeans(StrategyandDevelopment)andtheDirectorsoftheUniversity’sadministrativedepartmentsmonthly,andisconstitutedastheExecutiveBoard.TheExecutiveBoard’srolederivesfromtheexecutivepowersoftheVice-Chancellor.Itisconstitutedinordertofocusondecision-makingandalsoservesasabodywhichcanbeusedbytheVice-Chancellorforbriefing,consultationandcommunicationwithseniormanagersasagroup.TheobjectiveoftheExecutiveBoardistoensurethatanappropriatelevelofconsiderationisgiventostrategicdecisions,thatthereisaccountabilityforthosedecisions,andthatimprovedcommunicationwiththewiderseniormanagementgroupisachieved.Specifically,theExecutiveBoarddetermines:

n Strategicandoperationalplans.

n TheannualbudgetandfinancialforecastsfortheVice-ChancellortoproposetotheBoardofGovernorsforapproval.

n TheimplementationofpoliciesasnecessaryandmonitoringoftheUniversity’sperformanceagainstplans.

n Determinationandoversightoftheprocessesbywhichstrategicandoperationalplanningareundertaken,resourcesallocatedandtargets,includingstudentnumbers,areachieved.

n ImplementationandmonitoringoftheUniversity’sriskmanagementstrategy.

n Considerationofreportsonvalueformoney.

n Day-to-day‘businessasusual’mattersconcerningthemanagementoftheUniversity.

Finance and Resources Committee TheCommitteemeetsatleastfourtimesayear.Membershipconsistsoffivegovernors.ThecommitteeisresponsibletotheBoardofGovernorsfor:

n AdvisingtheVice-Chancellor,onarecommendationtotheBoard,forthecomingyear’srecurrentandcapitalbudgets,andonthecashflowforecastanddraftbalancesheetarising.

n RecommendingforapprovalbytheBoard,arollingfive-yearstrategicplan,includingfinancialplans(bothrevenueandcapital)projectedfive-yearcashflowandbalancesheets,takingaccountoftherequirementsoftheBankLendersandoftheFundingCouncil.

n RecommendingtheEstatesInvestmentPlantotheBoard,andmonitoringandreviewingitsapplicationandimplementation.

19

n RecommendingtheHumanResourcesStrategytotheBoard,andmonitoringandreviewingitsapplicationandimplementation.

n RecommendingtheITStrategytotheBoard,andmonitoringandreviewingitsimplementation.

n ReviewingchangestoandtheimplementationofotherkeyUniversitystrategiesfromtimetotime,asnecessary.

n ReviewingandrecommendingtotheBoardborrowingorotherfinancialvehiclesnecessarytofundthestrategy,andthereleaseoffundsforspecificprojects.

n RecommendingtotheBoard,theacquisitionordisposaloflandsandbuildings

Thesearethekeyareasbutarenotthefulltermsofreference.

Audit Committee TheAuditCommitteemeetsatleastfourtimesayear.Membershipconsistsofuptofourgovernorsandthreeco-optedmembers.ThecommitteeisresponsibleforadvisingtheBoardon:

n Theeffectivenessoftheinternalauditserviceandensuringthattheirrecommendationsareappropriatelyexecuted.

n Theeffectivenessofinternalcontrolandriskmanagementprocedures.

n TheworkoftheexternalauditorsandwhethertheyareeffectivelycarryingouttheirresponsibilitiestotheBoardofGovernorsbyreportingthattheUniversity’sfinancialstatementspresentatrueandfairviewoftheyear’sactivities.

n Theexistenceofsatisfactoryarrangementstopromoteeconomy,efficiencyandeffectiveness.

n Theapprovalofthefinancialstatements.

n Thesystemsandprocesseswherebyassuranceisobtainedonthequalityofalldatareturns.Thesearethekeyareasbutarenotthefulltermsofreference.

Remuneration Committee TheRemunerationCommitteemeetsasnecessarytoreviewthepolicyfortheremunerationoftheseniorstaffappointedbytheBoardofGovernors.MembershipconsistsoffourgovernorsandtheVice-Chancellor.TheVice-Chancellorisexcludedfrommattersconcerninghisownremuneration.

Nominations Committee TheNominationsCommitteecomprisesfivegovernorsincludingtheVice-Chancellor.ItisresponsibleforadvisingtheBoardontheappointmentofnewgovernorsandco-optedgovernors.

Academic Board TheAcademicBoardoftheUniversityischairedbytheVice-ChancellorandcomprisesrepresentativesofboththeacademicandrelatedareasoftheUniversity,aproportionofwhomareelectedrepresentatives.TheAcademicBoardisresponsiblefor:

n Generalissuesrelatingtotheresearch,scholarship,teachingandcoursesattheUniversity,includingcriteriafortheadmissionofstudents;theappointmentandremovalofinternalandexternalexaminers;policiesandproceduresforassessmentandexaminationoftheacademicperformanceofstudents;thecontentofthecurriculum;academicstandardsandthevalidationandreviewofcourses;theproceduresfortheawardofqualificationsandhonoraryacademictitles;andtheproceduresfortheexclusionofstudentsforacademicreasons.

n ConsideringthedevelopmentoftheacademicactivitiesoftheUniversityandtheresourcesneededtosupportthemandforadvisingtheVice-ChancellorandtheBoardofGovernorsthereon.

n AdvisingonsuchothermattersastheBoardofGovernorsortheVice-ChancellormayrefertotheAcademicBoard.

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Internal Control ThekeyelementsoftheUniversity’ssystemsofinternalfinancialcontrol,whicharedesignedtodischargetheresponsibilitiesoftheBoardofGovernors,includethefollowing:

n Cleardefinitionsoftheresponsibilitiesof,andtheauthoritydelegatedto,headsofacademicandadministrativedepartments.

n Acomprehensivemediumandshort-termplanningprocess,supplementedbydetailedannualincome,expenditure,capitalandcash-flowbudgets.

n Regularreviewsofacademicperformanceandmonthlyreviewsoffinancialresultsinvolvingvariancereportingandquarterlyupdatesoftheforecastoutturn.

n Clearlydefinedandformalisedrequirementsforapprovalandcontrolofexpenditure,withinvestmentdecisionsinvolvingcapitalorrevenueexpenditurebeingsubjecttoformaldetailedappraisalandreview.

n Comprehensivefinancialregulations,detailingfinancialcontrolsandprocedures,approvedbytheAuditCommitteeandtheBoardofGovernors.

n AprofessionalinternalauditteamwhoseannualprogrammeisapprovedbytheAuditCommittee.

Anysystemsofinternalfinancialcontrolcan,however,onlyprovidereasonable,butnotabsolute,assuranceagainstmaterialmisstatementorloss.

Charitable status TheUniversityisanExemptCharityasdefinedbytheCharitiesAct2011.FromJune2010,HEFCEbecametheprincipalregulatorforexemptCharities,andthesefinancialstatementsarepreparedinaccordancewiththeprovisionsoftheMemorandumofAssuranceandAccountabilitywithHEFCE.WhereactivitiesundertakenbytheUniversitymayfalloutsidethetermsofitscharitablestatus,theseareundertakenthroughOxfordBrookesEnterprisesLimited.ThemajorityoftheprofitsofthatcompanyaregiftaidedannuallytotheUniversity.AlltheactivitiesoperateddirectlybytheUniversityareofacharitablenatureandassuchnotliabletocorporationtax.

Statement of Board of Governors’ Responsibilities InaccordancewiththeEducationReformAct1988theBoardisresponsiblefortheoveralladministrationandmanagementoftheaffairsoftheUniversity,includingensuringaneffectivesystemofinternalcontrol,andisrequiredtopresentauditedfinancialstatementsforeachfinancialyear.

TheBoardisresponsibleforkeepingproperaccountingrecordswhichdisclosewithreasonableaccuracyatanytimethefinancialpositionoftheUniversityandenableittoensurethatthefinancialstatementsarepreparedinaccordancewiththeEducationReformAct1988,therequirementsofHEFCEandtheStatementofRecommendedPracticeonaccountinginHEinstitutionsandotherrelevantaccountingstandardsincludingFRS102.Inaddition,withinthetermsandconditionsoftheMemorandumofAssuranceandAccountabilitywithHEFCE,theBoard,throughitsdesignatedaccountableofficer,isrequiredtopreparefinancialstatementsforeachfinancialyearwhichgiveatrueandfairviewofthestateofaffairsoftheUniversityandofthesurplusordeficitandcashflowsforthatyear.

Inpreparingthefinancialstatements,theBoardhastoensurethat:

n Suitableaccountingpoliciesareselectedandappliedconsistently.

n Judgementsandestimatesaremadethatarereasonableandprudent.

n Applicableaccountingstandardshavebeenfollowed,subjecttoanymaterialdeparturesdisclosedandexplainedinthefinancialstatements.

n FinancialstatementsarepreparedonthegoingconcernbasisunlessitisinappropriatetopresumethattheUniversitywillcontinueinoperation.

TheBoardhastakenreasonablestepsto:

n EnsurethatfundsfromHEFCE,theSkillsFundingAgency(SFA)andtheTrainingandDevelopmentAgencyforschools(TDA),areusedonlyforthepurposesforwhichtheyhavebeengivenandinaccordancewiththeMemorandumofAssuranceandAccountabilitywithHEFCEandthefundingagreementswiththeSFAandTDA,andanyotherconditionsthatthefundingcouncilsoragencymayfromtimetotimeprescribe.

n Ensurethatthereareappropriatefinancialandmanagementcontrolsinplacetosafeguardpublicfundsandfundsfromothersources.

n SafeguardtheassetsoftheUniversityandtopreventanddetectfraud.

n Securetheeconomical,efficientandeffectivemanagementoftheUniversity’sresourcesandexpenditure.

IntheiroversightoftheUniversity,theGovernorshaveresponsibilityforensuringthemaintenanceandintegrityoftheuniversitywebsite.Theworkcarriedoutbytheauditorsdoesnotinvolveconsiderationofthesemattersand,accordingly,theauditorsacceptnoresponsibilityforanychangesthatmayhaveoccurredtothefinancialstatementssincetheywereinitiallypresentedonthewebsite.LegislationintheUnitedKingdomgoverningthepreparationofanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.

Disclosure of information to auditors Thememberswhoheldofficeatthedateofapprovalofthefinancialstatementsconfirmthat,sofarastheyareeachaware,thereisnorelevantauditinformationofwhichtheUniversity’sauditorsareunaware;andeachmemberhastakenallthestepsthatheorsheoughttohavetakentobeawareofanyrelevantauditinformationandtoestablishthattheUniversity’sauditorsareawareofthatinformation.

Risk Management TheUniversity’sstrategicriskmanagementprocesscontinuestoprovideeffectivesystemsfortheidentificationofthemajorstrategicandfinancialrisksfacingtheUniversity.During2015/16theUniversity’sExecutiveBoardandBoardofGovernorsmonitoredthefivehighestlevelstrategicriskswhilstotherriskscontinuedtobemanagedaspartoftheestablishedmanagementarrangements.

21

ThekeyfinancialriskswhichmaterialisedintheyearhadbeenidentifiedinthefinancialriskandcontingencyworkshopsheldeveryMay.Nosignificantrisksmaterialisedthathadnotbeenidentifiedthroughtheriskmanagementprocess.ThekeyelementsoftheUniversity’sapproachduringtheyear,designedtodischargetheresponsibilitiesoftheBoardofGovernorswere:

n AreviewoftheUniversity’sapproachandattitudetorisk.Thisincludedactiveparticipationfromseniormanagement.

n Twoworkshopstoidentifyevaluateandcategorisebyseverity,riskswhichimpactedontheachievementofstrategicobjectives.

n Theproductionofanupdatedriskregister.

n Thedevelopmentofriskimprovementplanstoaddressthehighestcategoriesofriskandtheconfirmationofthedelegationofresponsibilitytomanagethelesssignificantrisks.

n RegularmonitoringbytheExecutiveBoardoftheriskregisterandoftheimplementationofimprovementplansforthefourhighestseverityrisks.

n RegularmeetingsoftheRiskManagementWorkingGroup,asmallgroupofseniormanagers,chairedbytheRegistrarandChiefOperatingOfficer,toreviewboththeoutputoftheriskmanagementprocessbutalsotoconsiderimprovementsanddevelopmentstotheprocessitselfandthedevelopmentofadditionalriskmanagementproceduresatanoperationallevel.TheGrouphasnodelegatedauthorityitselfbutprovidesaneffectiveforumtoallowtheRegistrarandtheDirectorofFinanceandLegalServicestofulfiltheirresponsibilities.

n RegularreportsbothtotheBoardandtheAuditCommitteeonthedevelopmentoftheprocess,themostsevererisksandprogresswithimprovementplans.

n HighlevelinvolvementandsupportwhichincludedtheVice-ChancellortakinganactivepartinoneoftheriskworkshopsandchairingtheExecutiveBoardwhichconsideredtheriskregisterandimprovementplansandotherreportsonkeyaspectsoftheUniversity’sperformance.SeveralmembersoftheSeniorManagementTeam,ExecutiveBoardandrepresentativesoftheBoardofGovernorstookanactivepartinatleastoneofthevariousworkshops.

n ThattheInternalAuditteambasedtheirplanofworkontheUniversity’sriskanalysis,modifiedbytheirassessment.Inaddition,theInternalAuditTeamreviewedtheUniversity’ssystemofriskmanagement.

n AworkshopconvenedtospecificallyreviewthemainriskstotheUniversity’sfinancialplans,andtopredeterminewhatactionsmightbetakenifcertaineventsoccurred.

n Aseriesofworkshopstoproducenewriskregistersandimprovementplansforeachdirectorate.

Review of the effectiveness of internal control and risk management AtitsmeetinginNovember2016theBoardofGovernorsconsideredtheeffectivenessofthearrangementsforinternalcontrolandriskmanagementthathadbeeninplaceforthefinancialyearto31July2016anduptothedateofsigningtheannualfinancialstatements.TheBoardofGovernorsconcluded,basedupontheAnnualReportoftheAuditCommitteeandotherinternalauditandmanagementassurances,thatthearrangementsinplaceweresatisfactorytoprovideeffectiveinternalcontrolandriskmanagementthroughoutthistime.

LeslieMorphyChairofGovernorsNovember2016

ProfessorAlistairFittVice-ChancellorNovember2016

Going concern Aftermakingappropriateenquiries,theBoardofGovernorshasareasonableexpectationthattheUniversityhasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Forthisreason,theycontinuetoadoptthegoingconcernbasisinpreparingthefinancialstatements.

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Independent Auditors’ Report

Report on the financial statements

Our opinion Inouropinion,OxfordBrookesUniversity’sgroupfinancialstatementsandparentinstitutionfinancialstatements(the“financialstatements”):

n giveatrueandfairviewofthestateofthegroup’sandoftheparentinstitution’saffairsasat31July2016andofthegroup’sincomeandexpenditureandcashflowsfortheyearthenended;

n havebeenproperlypreparedinaccordancewithUnitedKingdomGenerallyAcceptedAccountingPractice;and

n havebeenproperlypreparedinaccordancewiththeStatementofRecommendedPractice–AccountingforFurtherandHigherEducation.

What we have audited Thefinancialstatements,includedwithintheStrategicReportandFinancialStatements(the“AnnualReport”),comprise

n theconsolidatedandparentinstitutionBalanceSheetsasat31July2016;

n theconsolidatedStatementofComprehensiveIncomeandExpenditureAccountfortheyearthenended;

n theconsolidatedStatementofchangesinReservesfortheyearthenended;

n theconsolidatedStatementofCashFlowsfortheyearthenended;

n theAccountingPolicies;and

n thenotestothefinancialstatements,whichincludeotherexplanatoryinformation.

ThefinancialreportingframeworkthathasbeenappliedintheirpreparationistheStatementofRecommendedPracticeforFurtherandHigherEducation,incorporatingUnitedKingdomAccountingStandards,comprisingFRS102“TheFinancialReportingStandardapplicableintheUKandRepublicofIreland”,andapplicablelaw(UnitedKingdomGenerallyAcceptedAccountingPractice).

Inapplyingthefinancialreportingframework,theBoardofGovernorshasmadeanumberofsubjectivejudgements,forexampleinrespectofsignificantaccountingestimates.Inmakingsuchestimates,theyhavemadeassumptionsandconsideredfutureevents.

Opinions on other matters prescribed in the HEFCE Audit Code of Practices issued under the Further and Higher Education Act 1992

Inouropinion,inallmaterialrespects:

n fundsfromwhateversourceadministeredbytheinstitutionforspecificpurposeshavebeenproperlyappliedtothosepurposesand,ifrelevant,managedinaccordancewithrelevantlegislation;

n incomehasbeenappliedinaccordancewiththeinstitution’sarticlesofgovernmentand

n fundsprovidedbyHEFCEhavebeenappliedinaccordancewiththeMemorandumofAssuranceandAccountability,andanyothertermsandconditionsattachedtothem.

Other matters on which we are required to report by exception UndertheHEFCEAuditCodeofPracticeissuedundertheFurtherandHigherEducationAct1992wearerequiredtoreporttoyouif,inouropinionthestatementofinternalcontrolincludedaspartoftheStatementofCorporateGovernanceandinternalcontrolisinconsistentwithourknowledgeoftheparentinstitutionandgroup.Wehavenoexceptionstoreportfromthisresponsibility.

Responsibilities for the financial statements and the audit

Respective responsibilities of the Board of Governors and auditors AsexplainedmorefullyintheStatementofCorporateGovernanceandinternalcontrolsetoutonpage20theBoardofGovernorsisresponsibleforthepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview.OurresponsibilityistoauditandexpressanopiniononthefinancialstatementsinaccordancewithapplicablelawandInternationalStandardsonAuditing(UKandIreland)(“ISAs(UK&Ireland)”).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’sEthicalStandardsforAuditors.

Thisreport,includingtheopinions,hasbeenpreparedforandonlyfortheBoardofGovernorsasabodyinaccordancewiththeinstitution’sArticlesofGovernmentandsection124BoftheEducationReformAct1988asamendedbysection71oftheFurtherandHigherEducationAct1992,andfornootherpurpose.Wedonot,ingivingtheseopinions,acceptorassumeresponsibilityforanyotherpurposeortoanyotherpersontowhomthisreportisshownorintowhosehandsitmaycomesavewhereexpresslyagreedbyourpriorconsentinwriting.

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What an audit of financial statements involves

WeconductedourauditinaccordancewithISAs(UK&Ireland).Anauditinvolvesobtainingevidenceabouttheamountsanddisclosuresinthefinancialstatementssufficienttogivereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedbyfraudorerror.Thisincludesanassessmentof:

n whethertheaccountingpoliciesareappropriatetothegroupandparentinstitution’scircumstancesandhavebeenconsistentlyappliedandadequatelydisclosed;

n thereasonablenessofsignificantaccountingestimatesmadebytheBoardofGovernors;and

n theoverallpresentationofthefinancialstatements.

WeprimarilyfocusourworkintheseareasbyassessingtheBoardofGovernors’judgementsagainstavailableevidence,formingourownjudgements,andevaluatingthedisclosuresinthefinancialstatements.

Wetestandexamineinformation,usingsamplingandotherauditingtechniques,totheextentweconsidernecessarytoprovideareasonablebasisforustodrawconclusions.Weobtainauditevidencethroughtestingtheeffectivenessofcontrols,substantiveproceduresoracombinationofboth.

Inaddition,wereadallthefinancialandnon-financialinformationintheStrategicReporttoidentifymaterialinconsistencieswiththeauditedfinancialstatementsandtoidentifyanyinformationthatisapparentlymateriallyincorrectbasedon,ormateriallyinconsistentwith,theknowledgeacquiredbyusinthecourseofperformingtheaudit.Ifwebecomeawareofanyapparentmaterialmisstatementsorinconsistenciesweconsidertheimplicationsforourreport.

AlisonBreadon(SeniorStatutoryAuditor)forandonbehalfofPricewaterhouseCoopersLLPCharteredAccountantsandStatutoryAuditorsCornwallCourt19CornwallStreetBirminghamB32DT

Date

(a) ThemaintenanceandintegrityoftheOxfordBrookesUniversitywebsiteistheresponsibilityoftheBoardofGovernorstheworkcarriedoutbytheauditorsdoesnotinvolveconsiderationofthesemattersand,accordingly,theauditorsacceptnoresponsibilityforanychangesthatmayhaveoccurredtothefinancialstatementssincetheywereinitiallypresentedonthewebsite.

(b) LegislationintheUnitedKingdomgoverningthepreparationanddisseminationofthefinancialstatementsmaydifferfromlegislationinotherjurisdictions.

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Financial Statements

Consolidated and University Statements of Comprehensive Income and Expenditure for the year ended 31 July 2016

Year ended 31 July 2016 Yearended31July2015

Note Consolidated University Consolidated University

£’000 £’000 £’000 £’000

Income

Tuitionfeesandeducationcontracts 1 126,997 126,945 116,266 116,256

Fundingbodygrants 2 15,382 15,382 16,412 16,412

Researchgrantsandcontracts 3 4,314 4,175 4,279 4,205

Otherincome 4 44,896 42,990 43,466 41,354

Investmentincome 5 319 319 231 231

Donationsandendowments 6 731 731 488 488

Total income 192,639 190,542 181,142 178,946

Expenditure

Staffcosts 7 96,037 95,267 92,581 91,459

Otheroperatingexpenses 10 58,856 57,545 60,669 59,704

Depreciationandamortisation 11,12 15,925 15,909 14,925 14,909

Impairmentanddisposals 12 754 754 569 569

Interestandotherfinancecosts 8 8,538 8,538 8,399 8,399

Total expenditure 9 180,110 178,013 177,143 175,040

Operating Surplus before tax 12,529 12,529 3,999 3,906

Taxation - - - -

Surplus for the year 12,529 12,529 3,999 3,906

Actuariallossinrespectofpensionschemes 29 (36,694) (36,694) (4,280) (4,280)

Total comprehensive expense for the year (24,165) (24,165) (281) (374)

Representedby:

Endowmentcomprehensiveexpensefortheyear (15) (15) (79) (79)

Restrictedcomprehensiveincomefortheyear 293 293 4 4

Unrestrictedcomprehensiveexpensefortheyear (25,590) (25,590) (893) (986)

Revaluationreservecomprehensiveincomefortheyear 1,147 1,147 687 687

AttributabletotheUniversity (24,165) (24,165) (281) (374)

Attributabletothenon-controllinginterest - - - -

(24,165) (24,165) (281) (374)

Surplus for the year attributable to:

University 12,529 12,529 3,999 3,906

O X F O R D B R O O K E S U N I V E R S I T Y

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Consolidated and University Statements of Changes in Reserves for the Year ended 31 July 2016

Consolidated

Income and expenditure account

Revaluation reserve

Total

Endowment Restricted Unrestricted

£’000 £’000 £’000 £’000 £’000

Balance at 1 August 2014 1,798 425 54,512 105,376 162,111

(Deficit)/surplusfromtheincomeandexpenditurestatement

(79) 4 (893) - (968)

Othercomprehensiveincome - - - - -

Transfersbetweenrevaluationandincomeandexpenditurereserve

- - - - -

Releaseofrestrictedfundsspentinyear - - 687 (687) -

Total comprehensive (expense)/income for the year

(79) 4 (206) (687) (968)



(15) 293 (25,590) - (25,312)



- - 1,147 (1,147) -

Releaseofrestrictedfundsspentinyear - - - - -


(15) 293 (24,443) (1,147) (25,312)

Balance at 31 July 2016 1,704 722 29,863 103,542 135,831

University Income and expenditure account Revaluation

reserve

Total excluding Non Controlling

Interest

Endowment Restricted Unrestricted

£’000 £’000 £’000 £’000 £’000



(79) 4 (986) - (1,061)



- - 687 (687) -


Total comprehensive income for the year (79) 4 (299) (687) (1,061)



(15) 293 (25,590) - (25,312)



- - 1,147 (1,147) -



(15) 293 (24,443) (1,147) (25,312)

Balance at 31 July 2016 1,704 722 29,770 103,542 135,738


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Consolidated and University Balance Sheets as at 31 July 2016

As at 31 July 2016 Asat31July2015

Note Consolidated University Consolidated University

£’000 £’000 £’000 £’000

Non-current assets

Intangibleassets 11 2,306 2,306 2,406 2,406

Fixedassets 12 383,732 383,176 377,753 377,181

Investments 14 115 565 115 565

386,153 386,047 380,274 380,152

Current assets

Stock 15 145 119 139 108

Assetsheldforsale 16 699 699 - -

Tradeandotherreceivables 17 8,942 10,185 9,416 10,337

Investments 18 15,000 15,000 8,000 8,000

Cashandcashequivalents 24 37,638 35,730 22,563 20,959

62,424 61,733 40,118 39,404

Less:Creditors:amountsfalling

duewithinoneyear 19 (32,765) (32,061) (36,654) (35,911)

Net current assets 29,659 29,672 3,464 3,493

Total assets less current liabilities 415,812 415,719 383,738 383,645

Creditors:amountsfallingdueaftermorethanoneyear 20 (154,697) (154,697) (139,714) (139,714)

Provisions

Pensionprovisions 21 (125,284) (125,284) (82,881) (82,881)

Total net assets 135,831 135,738 161,143 161,050

Restricted Reserves

Incomeandexpenditurereserve-endowmentreserve 22 1,704 1,704 1,719 1,719

Incomeandexpenditurereserve-restrictedreserve 23 722 722 429 429

Unrestricted Reserves

Incomeandexpenditurereserve-unrestricted 29,863 29,770 54,306 54,213

Revaluationreserve 103,542 103,542 104,689 104,689

135,831 135,738 161,143 161,050

Non-controllinginterest -

Total Reserves 135,831 135,738 161,143 161,050

ThefinancialstatementswereapprovedbytheBoardofGovernorson22November2016andsignedonitsbehalfby:

LeslieMorphyChairofGovernors

ProfessorAlistairFittVice-Chancellor


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Consolidated Cash Flow Statement for the Year ended 31 July 2016

Note Year ended 31 July 2016

Yearended31July2015

£’000 £’000

Cash flow from operating activities

Surplusfortheyear 12,529 3,999

Adjustment for non-cash items

Depreciation 12 14,677 14,188

Amortisationofintangibles 11 1,248 737

Lossondisposaloffixedassets 754 569

Releaserevaluationreserve (1,147) (687)

Serviceconcessionleasepremium 13 (125) (125)

Increaseinstock 15 (6) (3)

Decreaseindebtors 959 748

(Decrease)/increaseincreditors (3,653) 2,126

Increaseinpensionprovision 21 5,709 5,328

Adjustment for investing or financing activities

Investmentincome 5 (319) (231)

Interestpayable 8 5,514 5,295

Endowmentincome (192) (127)

Releasecapitalgrant (2,298) (1,952)

Net cash inflow from operating activities 33,650 29,865

Cash flows from investing activities

Capitalgrantsreceipts 4,299 2,908

Withdrawalofdeposits 8,000 -

Investmentincome 319 188

Paymentsmadetoacquirefixedassets (19,336) (7,050)

Paymentsmadetoacquireintangibleassets (1,750) (516)

Newdeposits (15,000) (8,000)

(23,468) (12,470)

Cash flows from financing activities

Interestpaid (5,205) (5,184)

Interestelementoffinanceleaseandserviceconcessionpayments (141) (140)

Endowmentcashreceived 192 127

Newunsecuredloans 60,000 475

Repaymentsofamountsborrowed (47,180) (16,154)

Capitalelementoffinanceleaseandserviceconcessionpayments 13 (2,773) (2,744)

4,893 (23,620)

Increase/(decrease)incashandcashequivalentsintheyear 15,075 (6,225)

Cash and cash equivalents at beginning of the year 24 22,563 28,788

Cashandcashequivalentsatendoftheyear 24 37,638 22,563


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Basis of Preparation ThesefinancialstatementshavebeenpreparedinaccordancewiththeStatementofRecommendedPractice(SORP):AccountingforFurtherandHigherEducation2015andinaccordancewithFinancialReportingStandards(FRS102).TheUniversityisapublicbenefitentityandthereforehasappliedtherelevantpublicbenefitrequirementofFRS102.Thefinancialstatementsarepreparedinaccordancewiththehistoricalcostconvention(modifiedbytherevaluationoffixedassetsandderivativefinancialinstruments)

TheconsolidatedfinancialstatementsincludetheUniversityandallitssubsidiariesforthefinancialyearto31July2016.Theresultsofsubsidiariesacquiredordisposedofduringtheperiodareincludedintheconsolidatedstatementofincomeandexpenditurefromthedateofacquisitionoruptothedateofdisposal.Intra-grouptransactionsareeliminatedonconsolidation.

TheconsolidatedfinancialstatementsdonotincludetheincomeandexpenditureoftheStudents’UnionastheUniversitydoesnotexertcontrolordominantinfluenceoverpolicydecisions.

Associatedcompaniesandjointventuresareaccountedforusingtheequitymethod.

IncomefromthesaleofgoodsorservicesiscreditedtotheConsolidatedStatementofComprehensiveIncomeandExpenditurewhenthegoodsorservicesaresuppliedtotheexternalcustomersorthetermsofthecontracthavebeensatisfied.

FeeincomeisstatedgrossofanyexpenditurewhichisnotadiscountandcreditedtotheConsolidatedStatementofIncomeandComprehensiveExpenditureovertheperiodinwhichstudentsarestudying.Wheretheamountofthetuitionfeeisreduced,byadiscountforpromptpayment,incomereceivableisshownnetofthediscount.Bursariesandscholarshipsareaccountedforgrossasexpenditureandnotdeductedfromincome.

Investmentincomeiscreditedtothestatementofincomeandexpenditureonareceivablebasis.

FundstheUniversityreceivesanddisbursesaspayingagentonbehalfofafundingbodyareexcludedfromtheincomeandexpenditureoftheUniversitywheretheUniversityisexposedtominimalriskorenjoysminimaleconomicbenefitrelatedtothetransaction.

Grant funding GovernmentrevenuegrantsincludingfundingcouncilblockgrantandresearchgrantsarerecognisedinincomeovertheperiodsinwhichtheUniversityrecognisestherelatedcostsforwhichthegrantisintendedtocompensate.Wherepartofagovernmentgrantisdeferreditisrecognisedasdeferredincomewithincreditorsandallocatedbetweencreditorsduewithinoneyearanddueaftermorethanoneyearasappropriate.

Grants(includingresearchgrants)fromnon-governmentsourcesarerecognisedinincomewhentheUniversityisentitledtotheincomeandperformancerelatedconditionshavebeenmet.Incomereceivedinadvanceofperformancerelatedconditionsbeingmetisrecognisedasdeferredincomewithincreditorsonthebalancesheetandreleasedtoincomeastheconditionsaremet.

Donations and endowments Nonexchangetransactionswithoutperformancerelatedconditionsaredonationsandendowments.DonationsandendowmentswithdonorimposedrestrictionsarerecognisedinincomewhentheUniversityisentitledtothefunds.Incomeisretainedwithintherestrictedreserveuntilsuchtimethatitisutilisedinlinewithsuchrestrictionsatwhichpointtheincomeisreleasedtogeneralreservesthroughareservetransfer.

DonationswithnorestrictionsarerecognisedinincomewhentheUniversityisentitledtothefunds.

Investmentincomeandappreciationofendowmentsisrecordedinincomeintheyearinwhichitarisesandaseitherrestrictedorunrestrictedincomeaccordingtothetermsotherrestrictionappliedtotheindividualendowmentfund.

Therearefourmaintypesofdonationsandendowmentsidentifiedwithinreserves:

1. Restricteddonations–thedonorhasspecifiedthatthedonationmustbeusedforaparticularobjective.

2. Unrestrictedpermanentendowments–thedonorhasspecifiedthatthefundistobepermanentlyinvestedtogenerateanincomestreamforthegeneralbenefitoftheUniversity.

3. Restrictedexpendableendowments–thedonorhasspecifiedaparticularobjectiveotherthanthepurchaseorconstructionoftangiblefixedassets,andtheUniversityhasthepowertousethecapital

4. Restrictedpermanentendowments–thedonorhasspecifiedthatthefundistobepermanentlyinvestedtogenerateanincomestreamtobeappliedtoaparticularobjective.

Capital grants Governmentcapitalgrantsarerecognisedinincomeovertheexpectedusefullifeoftheasset.OthercapitalgrantsarerecognisedinincomewhentheUniversityisentitledtothefundssubjecttoanyperformancerelatedconditionsbeingmet.

Accounting for retirement benefits RetirementbenefitstoemployeesoftheUniversityareprovidedbydefinedbenefitschemesthatarefundedbycontributionsfromtheUniversityandemployees.PaymentsaremadetotheTeachers’PensionScheme(TPS),theUniversities’SuperannuationScheme(USS)andtheLocalGovernmentPensionScheme(LGPS)administeredbyOxfordshireCountyCouncil.Theseareallindependentlyadministeredschemes.PensioncostsareassessedonthelatestactuarialvaluationsoftheschemeandareaccountedforonthebasisofchargingthecostofprovidingpensionsovertheyearduringwhichtheUniversitybenefitsfromtheemployees’services.

TheTPSisamulti-employerpensionschemeandtheUniversityisunabletoidentifyitsshareoftheunderlyingassetsandliabilitiesoftheschemeonaconsistentandreasonablebasis.TheTPSisthereforetreatedasdefinedcontributionschemesandthecontributionsarerecognisedastheyarepaideachyear.

TheassetsoftheLGPSaremeasuredusingclosingmarketvalues.LGPSliabilitiesaremeasuredusingtheprojectedunitmethodanddiscountedatthecurrentrateofreturnonhighqualitycorporatebondofequivalenttermandcurrencytotheliability.TheincreaseinthepresentvalueoftheliabilitiesoftheschemeexpectedtoarisefromtheemployeeserviceintheyearischargedtostaffcostsandtheinterestontheliabilitiesischargedtointerestandotherfinancecoststotheoperatingsurplusinTheConsolidatedStatementofComprehensiveIncomeandExpenditure.ActuarialgainsandlossesarealsorecognisedinTheConsolidatedStatementofComprehensiveIncomeandExpenditure.

O X F O R D B R O O K E S U N I V E R S I T Y Statementofaccountingpoliciesfortheyearended31July2016

29

Defined Benefit Plan Definedbenefitplansarepost-employmentbenefitplansotherthandefinedcontributionplans.Underdefinedbenefitplans,theUniversity’sobligationistoprovidetheagreedbenefitstocurrentandformeremployees,andactuarialrisk(thatbenefitswillcostmoreorlessthanexpected)andinvestmentrisk(thatreturnsonassetssetasidetofundthebenefitswilldifferfromexpectations)areborne,insubstance,bytheUniversity.TheGroupshouldrecognisealiabilityforitsobligationsunderdefinedbenefitplansnetofplanassets.Thisnetdefinedbenefitliabilityismeasuredastheestimatedamountofbenefitthatemployeeshaveearnedinreturnfortheirserviceinthecurrentandpriorperiods,discountedtodetermineitspresentvalue,lessthefairvalue(atbidprice)ofplanassets.Thecalculationisperformedbyaqualifiedactuaryusingtheprojectedunitcreditmethod.Wherethecalculationresultsinanetasset,recognitionoftheassetislimitedtotheextenttowhichtheUniversityisabletorecoverthesurpluseitherthroughreducedcontributionsinthefutureorthroughrefundsfromtheplan.

Employment benefits ShorttermemploymentbenefitssuchassalariesandcompensatedabsencesarerecognisedasanexpenseintheyearinwhichtheemployeesrenderservicetotheUniversity.AnyunusedbenefitsareaccruedandmeasuredastheadditionalamounttheUniversityexpectstopayasaresultoftheunusedentitlement.

Service Concession Arrangements FixedassetsheldunderserviceconcessionarrangementsarerecognisedontheBalanceSheetatthepresentvalueoftheminimumleasepaymentswhentheassetsareboughtintousewithacorrespondingfinancialliability.

Paymentsundertheserviceconcessionarrangementareallocatedbetweenservicecosts,financechargesandfinancialliabilityrepaymentstoreducethefinancialliabilitytoniloverthelifeofthearrangement.

Operating leases Costsinrespectofoperatingleasesarechargedonastraight-linebasisovertheleaseterm.Anyleasepremiumsorincentivesarespreadovertheminimumleaseterm.

Foreign currencyTransactionsinforeigncurrenciesaretranslatedtotherespectivefunctionalcurrenciesofGroupentitiesattheforeignexchangeraterulingatthedateofthetransaction.Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesatthebalancesheetdatearetranslatedtothefunctionalcurrencyattheforeignexchangeraterulingatthatdate.ForeignexchangedifferencesarisingontranslationarerecognisedinSurplusorDeficit.

Fixed assets Fixedassetsarestatedatcostlessaccumulateddepreciationandaccumulatedimpairmentlosseswiththefollowingexceptions:

1. Freeholdlandhasbeenrevaluedtofairvalueonthedateoftransitiontothe2015FEHESORP.Goingforwardthelandismeasuredonthebasisofdeemedcost,beingtherevaluedamountatthedate(31July2014)oftherevaluation.

2. FreeholdandleaseholdpropertiesvestedintheUniversityundertheEducationReformAct1988,atvaluation.Thevaluationasat1April1991wascarriedoutbyanindependentfirmofcharteredsurveyorsandratingconsultantsonthebasisofdepreciatedreplacementcostinthecaseofbuildings,exceptwhereamarketvaluewasmoreappropriate,andcurrentusemarketvalueinthecaseofland.

Wherepartsofafixedassethavedifferentusefullives,theyareaccountedforasseparateitemsoffixedassets.

Allassetsareregularlyreviewedforindicationsofimpairment.WherethereisimpairmentthedifferencebetweentheassessedrecoverablevalueofthebuildinganditswrittendowncostischargedtotheconsolidatedStatementofComprehensiveIncomeandExpenditure.

Land and buildings Costsincurredinrelationtolandandbuildingsafterinitialpurchaseorconstruction,andpriortovaluation,arecapitalisedtotheextentthattheyincreasetheexpectedfuturebenefitstotheUniversity.

Freeholdlandisnotdepreciatedasitisconsideredtohaveanindefiniteusefullife.Freeholdbuildingsaredepreciatedonastraightlinebasisovertheirexpectedusefullivesasfollows:

Freeholdbuildings 10to50years

LongLeaseholdproperty Thelowerofthelengthofthelease, thelifeofthebuilding,or50years

Nodepreciationischargedonassetsinthecourseofconstruction.

Equipment Equipment,includingcomputersandsoftware,costinglessthan£10,000isrecognisedasexpenditure.Allotherequipmentiscapitalised.

Capitalisedequipmentisstatedatcostanddepreciatedoveritsexpectedusefullifeasfollows:

Equipment 3to10years

Depreciationmethods,usefullivesandresidualvaluesarereviewedatthedateofpreparationofeachBalanceSheet.

Borrowing costs Borrowingcostsarerecognisedasexpenditureintheperiodinwhichtheyareincurred.

Intangible assets Intangibleassetsareamortisedover3-20yearsrepresentingtheremainingestimatedeconomiclifeoftheassets.

Investments NoncurrentassetinvestmentsareheldontheBalanceSheetatamortisedcostlessimpairment.

InvestmentsinsubsidiariesarecarriedatcostintheUniversity’saccounts.

CurrentassetinvestmentsareheldatfairvaluewithmovementsrecognisedintheSurplusorDeficit.

Stock Goodsheldforresaleareincludedatthelowerofcostandnetrealisablevalue.Librarybooksandotherconsumablestocksheldbyacademicdepartmentsareexcluded.

Cash and cash equivalents Cashincludescashinhand,depositsrepayableondemandandoverdrafts.Depositsarerepayableondemandiftheyareinpracticeavailablewithin24hourswithoutpenalty.

Cashequivalentsareshortterm,highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashwithinsignificantriskofchangeinvalue.

Statementofaccountingpoliciesfortheyearended31July2016 O X F O R D B R O O K E S U N I V E R S I T Y

30

Provisions, contingent liabilities and contingent assets Provisionsarerecognisedinthefinancialstatementswhen:

(a) theUniversityhasapresentobligation(legalorconstructive)asaresultofapastevent;

(b) itisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation;and

(c) areliableestimatecanbemadeoftheamountoftheobligation.

Theamountrecognisedasaprovisionisdeterminedbydiscountingtheexpectedfuturecashflowsatapre-taxratethatreflectsrisksspecifictotheliability.

AcontingentliabilityarisesfromapasteventthatgivestheUniversityapossibleobligationwhoseexistencewillonlybeconfirmedbytheoccurrenceorotherwiseofuncertainfutureeventsnotwhollywithinthecontroloftheUniversity.Contingentliabilitiesalsoariseincircumstanceswhereaprovisionwouldotherwisebemadebuteitheritisnotprobablethatanoutflowofresourceswillberequiredortheamountoftheobligationcannotbemeasuredreliably.

AcontingentassetariseswhereaneventhastakenplacethatgivestheUniversityapossibleassetwhoseexistencewillonlybeconfirmedbytheoccurrenceorotherwiseofuncertainfutureeventsnotwhollywithinthecontroloftheUniversity.

ContingentassetsandliabilitiesarenotrecognisedintheBalanceSheetbutaredisclosedinthenotes.

Taxation TheUniversityisanexemptcharitywithinthemeaningofPart3oftheCharitiesAct2011,ItisthereforeacharitywithinthemeaningofParagraph1ofschedule6totheFinanceAct2010.Accordingly,theUniversityispotentiallyexemptfromtaxationinrespectofincomeorcapitalgainsreceivedwithincategoriescoveredbysection478-488oftheCorporationTaxAct2010(CTA2010)orsection256oftheTaxationofChargeableGainsAct1992,totheextentthatsuchincomeorgainsareappliedtoexclusivelycharitablepurposes.

AllsubsidiarycompaniesareliabletoCorporationTaxandValueAddedTaxinthesamewayasanyothercommercialorganisation.TheUniversity’sprincipalactivitiesareexemptfromValueAddedTax,butcertainancillarysuppliesandservicesareliabletoValueAddedTaxatvariousrates.ExpenditureincludesirrecoverableValueAddedtaxchargedbysupplierstotheUniversity.

Reserves Reservesareclassifiedasrestrictedorunrestricted.Restrictedendowmentreservesincludebalanceswhich,throughendowmenttotheUniversity,areheldasapermanentlyrestrictedfundwhichtheUniversitymustholdinperpetuity.

OtherrestrictedreservesincludebalanceswherethedonorhasdesignatedaspecificpurposeandthereforetheUniversityisrestrictedintheuseofthesefunds.

Unrestrictedreservesarebalanceswherethereisnorestrictionontheuseoffunds.

Transition to 2015 SORP TheUniversityispreparingitsfinancialstatementsinaccordancewithFRS102forthefirsttimeandconsequentlyhasappliedthefirsttimeadoptionrequirements.Anexplanationofhowthetransitionto2015SORPhasaffectedthereportedfinancialposition,financialperformanceandcashflowsoftheconsolidatedresultsoftheUniversityisprovidedinnote30.

TheUniversityhasrevaluedit’slandasat31July2014andusedasdeemedcostgoingforward,thishasresultedinan

increaseinthevalueofthelandof£79,034k

TheUniversityhasadoptedtheaccrualsmethodinaccountingforgovernmentrevenueandcapitalgrants.

Critical accounting judgements and estimation uncertainty

Defined benefit pension schemes (note 29) TheUniversityhasobligationstopaypensionbenefitstocertainemployees.Thecostofthesebenefitsandthepresentvalueoftheobligationsdependonanumberoffactors,includinglifeexpectancy,salaryincreases,assetvaluationsandthediscountrateoncorporatebonds.Managementestimatesthesefactors,inliaisonwiththeactuarialvaluer,indeterminingthenetpensionobligationinthebalancesheet.Theassumptionsreflecthistoricalexperienceandcurrenttrends.

Service Concession (note 13) TheUniversityhasoneserviceconcessionarrangement;judgementhasbeenusedinthedeterminingwheninfrastructureandrelatedliabilityshouldberecognised.Thecontractisuntil2050,butOxfordBrookesUniversityisabletonominateroomsyearly,withtheoptionofnominating0-100%,thereisthefollowingclauseintheagreement.

IfOxfordBrookesUniversitydoesnotreserve100%ofthe750rooms,thenOxfordBrookesUniversitycannotprovideaccommodationformorethan46%ofthestudentpopulationineachacademicyear,overthetermofthecontract.

TheUniversityhasmadethedecisiontoincludeaoneyearassetandassociatedliabilityratherthananassetandliabilityoverthelifeofthecontractasitnominatesroomsoneyearatatimeandcouldprovideaccommodationforthestudentsviathirdpartiesifnecessary.

Revaluation of land TheUniversityperformedaoneoffrevaluationofitslandontransitiontoFRS102.TheDistrictValuationofficecarriedouttherevaluationonthebasisofFairValuewhichisdefinedas:

Theamountforwhichanassetcouldbeexchanged,aliabilitysettled,orequityinstrumentgranted,betweenknowledgeable,willingpartiesinanarmslengthtransaction.

ThevaluationswerepreparedonanappropriatebasisinaccordancewiththeRICSvaluation–ProfessionalStandards2014andaresuitableforfinancialstatementspurposes.

Wherelandisassociatedwithabuildingthevaluerhasapportionedthelandonabasisofoverallvalueoftheproperty.Thevaluerhasdescribedthattheapportionmentbetweenlandvalueandbuildingsvalueshouldbe40%:60%.Forcampusassetsthevaluerapplieddepreciatedreplacementcostmethodology.Forstudentresidencesassets,thevaluerappliedfairvaluemethodologybyreferencetomarketvalue.

Wheatley campus impairment UnderFRS102animpairmentreviewwasundertakentolookforindicatorsofimpairment.TheUniversitydidnotidentifyanyindicatorsfortheWheatleycampus.TheUniversitycametothisconclusiongiventhevaluationofthissiteatcostandongoingannualdepreciation.ThelandattheWheatleycampuswasrevaluedinyear.ThedecisionisyettobemaderegardingtherelocationofacademicdepartmentsthatcurrentlyresideatWheatleygiventheplannedsaleofthissite.

O X F O R D B R O O K E S U N I V E R S I T Y Statementofaccountingpoliciesfortheyearended31July2016

31

Notes to the financial statements

1 Tuition fees and education contracts

Year Ended 31 July 2016Restated*

YearEnded31July2015 YearEnded31July2015

Consolidated University Consolidated University Consolidated University

£’000 £’000 £’000 £’000 £’000 £’000

Full-timehomeandEUundergraduatestudents 77,290 77,290 68,490 68,490 62,103 62,103

Part-timehomeandEUundergraduatestudents 1,591 1,591 963 963 963 963

Full-timehomeandEUpostgraduatestudents 4,483 4,483 4,858 4,858 4,858 4,858

Part-timehomeandEUpostgraduatestudents 2,726 2,726 2,100 2,100 2,100 2,100

Full-timeinternationalstudents 24,024 24,024 24,027 24,027 30,414 30,414

HealthAuthorities 13,703 13,703 12,595 12,595 12,595 12,595

Noncreditbearingcoursefees 1,175 1,123 1,759 1,759 1,759 1,759

Researchstudenttuitionfees 1,630 1,630 1,290 1,280 1,290 1,280

SupportGrants 375 375 184 184 184 184

126,997 126,945 116,266 116,256 116,266 116,256

Fulltimeundergraduatestudentschargedhomefeesareshownnetoffeewaiversrelatingtothe£9kfeepackageof£1,456k(2014-15:£1,782k)

*Theanalysisofthetuitionfeeandeducationcontractshasbeenrestatedduetopriorperiodmaterialerror.Totaltuitionfeeincomewascorrectlydisclosed.Theerrorarosethroughcodinginconsistenciesintheanalysisofthe2015tuitionfeesandeducationcontractsfigure,subsequentworkbytheStrategicandBusinessPlanningOfficeonthe2015numbersidentifiedtheerror.Full-timeinternationalstudentswereoverstatedby£6,387kandfull-timehomeandEUundergraduatestudentsunderstatedby£6,387k.

2 Funding body grants

Recurrent grant

HigherEducationFundingCouncil 10,924 10,924 11,706 11,706

SkillsFundingAgency 551 551 479 479

NationalCollegeforTeachingandLeadership 121 121 176 176

Specific grants

HigherEducationFundingCouncil 501 501 - -

HigherEducationInnovationFund 896 896 2,045 2,045

NationalCollegeforTeachingandLeadership - - 55 55

ReleaseofCapitalgrant 2,298 2,298 1,951 1,951

Other 91 91 - -

15,382 15,382 16,412 16,412


32

3 Research grants and contracts

Year Ended 2016 YearEnded2015

Consolidated University Consolidated University

£’000 £’000 £’000 £’000

ResearchCouncils 1,845 1,845 1,180 1,106

UK-basedcharities 622 622 1,128 1,128

UKCentralGovernment,LocalAuthorities 552 552 471 471

UKIndustry,commerce,PublicCorporations 226 124 368 368

EuropeanCommission 900 900 1,038 1,038

EUother 58 37 25 25

Otheroverseas 68 68 16 16

Othersources 43 27 53 53

4,314 4,175 4,279 4,205

4 Other income

Residences,cateringandconferences 28,185 27,906 27,780 27,544

Othercapitalgrants - - 146 146

Otherincome 16,711 15,084 15,540 13,664

44,896 42,990 43,466 41,354

5 Investment income

Investmentincomeonendowments 12 12 16 16

Investmentincomeonrestrictedreserves 1 1 - -

Otherinvestmentincome 306 306 215 215

319 319 231 231

6 Donations and endowments

Newendowments 192 192 127 127

Donationswithrestrictions 525 525 255 255

Unrestricteddonations 14 14 106 106

731 731 488 488

O X F O R D B R O O K E S U N I V E R S I T Y Notestothefinancialstatements

33

7 Staff costs

Year Ended 2016 YearEnded2015


£’000 £’000 £’000 £’000

StaffCosts: £’000 £’000 £’000 £’000

Salaries 75,239 74,297 73,600 72,683

Socialsecuritycosts 6,418 6,470 5,827 5,760

MovementonUSSprovision (61) (61) 517 517

Otherpensioncosts 14,441 14,561 12,637 12,499

Total 96,037 95,267 92,581 91,459

Year ended 31 July 2016

Yearended31July2015

EmolumentsoftheVice-Chancellor: £ £

Salary

ProfessorAlistairFittfrom1Feb2015 233,300 115,000

ProfessorJanetBeerto31Jan2015 - 115,000

PensioncontributionstoUSS

ProfessorAlistairFittfrom1Feb2015 - 2,000

ProfessorJanetBeerto31Jan2015 - 16,000

233,300 248,000

Remunerationofotherhigherpaidstaff,excludingemployer’spensioncontributions:

No. No.

£100,000to£109,999 1 3

£110,000to£119,999 - 2

£120,000to£129,999 7 4

£130,000to£139,999 1 -

£140,000to£149,999 - 1

£170,000to£179,999 - 1

£230,000to£239,999 1 -

10 11

Averagestaffnumbersbymajorcategory: No. No.

Teachingandresearchincludingmanagement 1,582 1,413

Support 1,514 1,434

3,096 2,847

Nocompensationpaid(2015:£0)forlossofofficepayabletoaseniorpost-holder:

Key management personnel

Keymanagementpersonnelarethosepersonshavingauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheUniversity.Staffcostsincludescompensationpaidtokeymanagementpersonnel.KeymanagementpersonnelatOxfordBrookesUniversityaremembersoftheSeniorManagementTeam

Year ended 31 July 2016

Yearended31July2015

£’000 £’000

Key management personnel compensation 1,269 1,341

Notestothefinancialstatements O X F O R D B R O O K E S U N I V E R S I T Y

34

Related Party TransactionsTheUniversityGovernorsarethetrusteesforcharitablelawpurposes.DuetothenatureoftheUniversity’soperationsandthecompositionoftheBoardofGovernors,beingdrawnfromlocalpublicandprivatesectororganisations,itisinevitablethattransactionswilltakeplacewithorganisationsinwhichaGovernormayhaveaninterest.AlltransactionsinvolvingorganisationsinwhichamemberofTheBoardofGovernorsmayhaveaninterest,includingthoseidentifiedbelow,areconductedatarm’slengthandinaccordancewiththeUniversity’sFinancialRegulationsandusualprocurementprocedures.

Paul Large (Director of Infrastructure Investment from 01/04/2016, Registrar until 31/03/2016 – Senior Management Team)

Trustee of Oxford Brookes Student Union until 31/03/2016

DuringtheyeartheInstitutionmadeawardsof£100ktotheStudents’Union.

Purchasetransactionsof£71kofwhich£11kwereoutstandingat31July2016.

Salestransactionsof£620kduringtheyearofwhich£4kwereoutstanding.

Alyson Coates, Governor

Non-executive Director of Oxford Health NHS Foundation Trust

Purchasetransactionsof£53kduringtheyearofwhich£4kwereoutstandingat31July2016.

Salestransactionsof£20kduringtheyearwithOxfordHealthNHSfoundationTrust.Noamoutoutstandingat31July2016.

Governor of Dr Challoner’s High School

TherewerenotransactionswithChalloner’sHighSchoolduringtheyear.

Trustee of Nuffield Oxford Hospitals Fund

TherewerenotransactionswithNuffieldOxfordHospitalsFundduringtheyear.

Geoffrey Donnelly, Governor

Director of the Higher Education Academy

Purchasetransactionsof£37kwithHEAduringtheyearofwhich£19kwereoutstandingat31July2016.

TherewerenosalestransactionswithHigherEducationAcademyduringtheyear.

Director of University of Cumbria

TherewerenotransactionswithUniversityofCumbriaduringtheyear.

John Guy, GovernorChairman of Surrey Heath Clinical Commissioning Group

Therewerenotransactionsduringtheyear.

Louise Thomas, Governor

Director of Thomas Design Regeneration & Consultation Ltd


Part-Time visiting lecturer at University of Westminster

Purchasetransactionsof£0.4kduringtheyear,noamountoutstandingat31July2016.

Therewerenosalestransactionsduringtheyear.

Urban Design Group, Co-Editor of quarterly journal

TherewerenotransactionswithUrbanDesignGroupduringtheyear.

Martin Howell, Governor

Chair of Oxford Health NHS Foundation Trust


Salestransactionsof£20kduringtheyearwithOxfordHealthNHSfoundationTrust.Noamoutoutstandingat31July2016.

Governor Oxford University NHS Foundation Trust


Salestransactionof£57kduringtheyear,ofwhich£13kwereoutstandingat31July2016.

Katherine Ryan, Governor

Mathew Arnold School Oxford

Purchasesof£80duringtheyear,noamountoutstandingat31July2016.

Salestransactionsof£3kduringtheyearofwhich£1kwereoutstandingat31July2016.

Leslie Morphy, GovernorNon-Executive director at Home Group


Susan Howdle, Co-opted Member

Co-opted Governor, upon nomination of Methodist Conference

TherewerenotransactionswithMethodistConferenceduringtheyear.

Chair of the Westminster College Oxford Trust Ltd

TherewerenotransactionswithWestminsterCollegeOxfordTrustLtdduringtheyear.

Swindon UTC Ltd

OxfordBrookesUniversityholds50%ofthevotingrightsinSwindonUTCLtd,butdoesnotreceiveanyeconomicbenefit.Therewerenotransactionsduringtheyear.


35

8 Interest and other finance costs

Year Ended 31 July 2016 YearEnded31July2015

Notes Consolidated University Consolidated University

£’000 £’000 £’000 £’000

Loaninterest 5,373 5,373 5,155 5,155

Financeleaseinterest(includingserviceconcessionfinancecharge) 13 141 141 140 140

Netchargeonpensionscheme 29 3,024 3,024 3,104 3,104

8,538 8,538 8,399 8,399

9 Analysis of total expenditure by activity

Academicandrelatedexpenditure 75,679 75,703 74,451 74,451

Administrationandcentralservices 53,477 51,926 46,314 45,191

Premises(includingserviceconcessioncost) 18,278 17,919 18,530 18,530

Residences,cateringandconferences 22,142 21,987 22,344 22,344

Researchgrantsandcontracts 8,387 8,377 6,842 6,842

Otherexpenses 2,146 2,101 8,663 7,682

180,110 178,013 177,144 175,040

10 Other operating expenses

Premises related:

Maintenance 8,509 8,494 10,185 10,170

Rent 3,257 3,197 2,778 2,730

Books,publicationsandperiodicals 612 612 1,068 1,067

Informationtechnologyrelatedequipment;suppliesandconsumables 2,935 2,932 3,056 3,041

Otherequipmentsuppliesandconsumables 2,044 1,982 1,934 1,895

Foodandcateringsuppliesandservices 3,502 3,378 3,700 3,592

Stationery,photocopyingandprinting 1,619 1,650 1,504 1,469

Temporarystaff,professionalservicesandconsultants 5,768 5,597 6,276 6,122

Otherhiredandcontractedservices 8,691 8,691 8,367 8,367

Examiners’fees 929 308 998 269

Communicationsandmarketing 681 630 797 739

Placements,teachingpracticeandeducationalvisits 447 447 770 770

Conferences,trainingandtuitionfees 1,057 1,044 1,271 1,248

Subscriptionsandcopyrightfees 3,497 3,486 3,085 3,076

Transportandtravelrelated 2,814 2,617 2,745 2,594

StudentUniongrant 1,000 1,000 923 923

Externalauditors’remunerationinrespectofauditservices 73 69 63 58

Externalauditors’remunerationinrespectofotherservices 7 7 20 20

Internalauditors’remuneration 136 136 134 134

Insurance 471 471 510 509

Bursaries,scholarshipsandotherfinancialsupporttostudent 7,075 7,075 6,910 6,892

Othercosts 3,732 3,722 3,575 4,019

58,856 57,545 60,669 59,704


36

11 Intangible assets: Software

Year ended 31 July 2016Consolidated University

£’000 £’000

Cost or valuation

At1August2015 4,728 4,687

Transfers 337 337

Additionsintheyear 811 811

At31July2016 5,876 5,835

Accumulated amortisation

At1August2015 2,322 2,281

Chargefortheyear 1,248 1,248

At31July2016 3,570 3,529

Net book value

At 31 July 2016 2,306 2,306

At31July2015 2,406 2,406

Theadditionduringtheyearrelatestothepurchaseofasoftwareintangibleassets.Theamortisationperiodisbetween3-20years.


37

12 Fixed assets

Consolidated

Freehold Land and Buildings

Leasehold Land and Buildings

Service concession

arrangement Land and Buildings (Note 14)

Fixtures, Fittings and Equipment

Assets in the Course of

Construction Total£’000 £’000 £’000 £’000 £’000 £’000

Cost or valuation

At1August2015 412,231 40,254 2,773 24,392 3,578 483,228

Additions 3,856 711 2,822 2,376 12,680 22,445

Transfers 920 32 - 378 (1,667) (337)

Disposals (3,537) (259) (2,773) (194) (17) (6,780)

At 31 July 2016 413,470 40,738 2,822 26,952 14,574 498,556Consisting of valuation as at:

31July2014 78,676 - - - - 78,676

Cost 334,794 40,738 2,822 26,952 14,574 419,880

413,470 40,738 2,822 26,952 14,574 498,556Accumulated depreciation

At1August2015 71,857 15,528 - 18,090 - 105,475

Chargefortheyear 8,286 1,070 2,773 2,548 - 14,677

Disposals (2,201) (259) (2,773) (95) - (5,328)

At 31 July 2016 77,942 16,339 - 20,543 - 114,824

Net book valueAt 31 July 2016 335,528 24,399 2,822 6,409 14,574 383,732

At31July2015 340,374 24,726 2,773 6,302 3,578 377,753

University

Cost and valuation

At1August2015 411,413 40,254 2,773 23,978 3,578 481,996

Additions 3,856 711 2,822 2,376 12,680 22,445

Transfers 920 32 - 378 (1,667) (337)

Disposals (3,537) (259) (2,773) (194) (17) (6,780)

At 31 July 2016 412,652 40,738 2,822 26,538 14,574 497,324Consisting of valuation as at:

31July2014 78,676 - - - - 78,676

Cost 333,976 40,738 2,822 26,538 14,574 418,648

412,652 40,738 2,822 26,538 14,574 497,324Accumulated depreciation

At1August2015 71,611 15,528 - 17,676 - 104,815

Chargefortheyear 8,270 1,070 2,773 2,548 - 14,661

Disposals (2,201) (259) (2,773) (95) - (5,328)

At 31 July 2016 77,680 16,339 - 20,129 - 114,148Net book value

At 31 July 2016 334,972 24,399 2,822 6,409 14,574 383,176

At31July2015 339,802 24,726 2,773 6,302 3,578 377,181

At31July2016,freeholdlandandbuildingsincluded£108,832k(2015£108,823k)inrespectoffreeholdlandandisnotdepreciated.ItistheUniversity’spolicynottocapitaliseloaninterest.

Leased assets included above:

Net Book Value:

At31July2015 - 24,399 2,822 300 175 27,696

At31July2016 - 24,726 2,773 450 4,060 32,009

Consolidatedfixtures,fittingsandequipmentincludeassetsheldunderfinanceleasesasfollows:

Year Ended 2016

Year Ended 2015

£’000 £’000

Cost 600 600

Accumulateddepreciation (150) -

Chargeforyear (150) (150)

Netbookvalue 300 450


38

12 Fixed assets continued

Revaluations

1. AsaresultoftheEducationReformAct1988,freeholdandleaseholdpropertiesoccupiedbytheUniversitytogetherwiththeequipmentcontainedthereinwerevestedintheUniversitywitheffectfrom1April1989.Aprofessionalvaluationwascarriedoutin1991ontheinheritedbuildings.Thevaluation,whichwasat1April1991,wasonthebasisofdepreciatedreplacementcostsinthecaseofbuildingsexceptwhereamarketvaluewasmoreappropriateandcurrentusemarketvalueinthecaseofland.Thetotalvaluationamountedto£64,380k.

2. OntransitiontotheFEHESORPtheUniversityhasperformedaone-offrevaluationofitsfreeholdlandtofairvalueasat31July2014.Thisrevaluationincreasedthevalueofthelandbyanet£73,565k(revaluationof£79,034klessimpairmentof£5,469k),from£33,119kto£106,684k.

Thefollowinglandareaswererevalued.

£’000

Studentaccommodation 38,586

Headington,GipsyLanesite 7,215

Wheatleycampus 27,764

Total 73,565

Depreciation and amortisation

£’000Intangibleassets(software)accumulatedamortisationchargefortheyear 1,248

Fixedassetsaccumulateddepreciationchargefortheyear 14,677

Total depreciation and amortisation 15,925

13 Service Concession Arrangements

TheUniversityhasoneonBalanceSheetarrangementwhereservicedeliveryhascommenced.

In2001theUniversityenteredintoa32yearcontractwithathirdpartyproviderfortheprovisionandmaintenanceofCheneyHallofresidence,providingaccommodationto750students.On31July2009theleasewasextendedby17yearsto31July2050.

TheUniversityreceivedaleasepremiumof£5.2m,whichisamortisedovertheremaininglifeofthelease.

TheUniversitynominatesthenumberofroomsitrequiresonayearlybasis;ithastheoptiontoreserveallornoneoftherooms.

TheassetsandliabilitiesrelatingtooneyearofthisschemearethereforerecognisedontheUniversity’sBalanceSheet.

Movement in Service concession arrangement assetsTheassetvalueoftheserviceconcessionincludedintheBalanceSheetasat31/07/2016is£2,822k(31/07/2015£2,772k).Thesumof£2,772kwasdepreciatedduringtheyear.

Movement in Service concession arrangement liabilitiesThetotalliabilitiesrelatingtotheserviceconcessionincludedintheBalanceSheetasat31/07/2016were£2,822k(31/07/2015£2,772k).Thesumof£2,772kwasrepaidduringtheyear.

Future commitments ThefollowingtableanalysestheUniversity’sfuturecommitmentsinrelationtoserviceconcessionarrangements.

Payablein1year £’000

Liabilityrepayments 2,822

FinanceCharge 143

ServiceCharge 1,408

Total 4,373

Lease PremiumThevalueoftheremainingunamortisedleasepremiumincurrentliabilitiesasat31/07/2016was£4,125k(31/07/2015£4,250k).


39

14 Non-Current Investments

ConsolidatedSubsidiary companies

Other fixed assets

investments Total£’000 £’000 £’000

At1August2015 - 115 115

At31July2016 - 115 115

University £’000 £’000 £’000

At1August2015 450 115 565

At31July2016 450 115 565

Othernon-currentinvestmentsconsistof: ConsolidatedandUniversity

OxfordExpressionTechnologies 70

CVCPPropertiesplc 34

WildKnowledgeLimited 11

115

15 Stock



£’000 £’000 £’000 £’000

Goodsheldforresale 145 119 139 108

145 119 139 108

16 Assets held for sale



£’000 £’000 £’000 £’000

699 699 - -

699 699 - -

TheFerndalesiteinSwindonisexpectedtobesoldwithin12monthsatthebalancesheetdate.TheSwindonCampusrelocatedinAugust2016toleasedpremises.


40

17 Trade and other receivables



£’000 £’000 £’000 £’000

Amountsfallingduewithinoneyear:

Researchgrantsreceivables 992 959 748 692

Othertradereceivables 2,381 2,073 3,410 2,526

Otherreceivables 2,184 2,160 1,646 1,582

Prepaymentsandaccruedincome 3,385 3,377 3,612 3,612

Amountsduefromsubsidiarycompanies - 1,616 - 1,925

8,942 10,185 9,416 10,337

18 Current investments



£’000 £’000 £’000 £’000

Shorttermdeposits 15,000 15,000 8,000 8,000

15,000 15,000 8,000 8,000

DepositsareheldwithbanksandbuildingsocietiesoperatingintheLondonmarketandlicensedbytheFinancialServicesAuthoritywithmorethanthreemonthsmaturityatthebalancesheetdate.Theinterestratesforthesedepositsarefixedforthedurationofthedepositattimeofplacement.

At31July2016theweightedaverageinterestrateofthesefixedratedepositswas1.1%perannumandtheremainingweightedaverageperiodforwhichtheinterestrateisfixedonthesedepositswas275days.Thefairvalueofthesedepositswasnotmateriallydifferentfromthebookvalue.

19 Creditors: amounts falling due within one year



£’000 £’000 £’000 £’000

Unsecuredloans 1,224 1,224 1,180 1,180

Obligationsunderfinanceleases 150 150 150 150

Serviceconcessionarrangements(note13) 2,822 2,822 2,773 2,773

Tradepayables 1,460 1,396 1,642 1,584

Socialsecurityandothertaxationpayable 2,333 2,359 1,923 1,881

Accrualsanddeferredincome 21,331 20,682 24,659 24,035

Othercreditors 3,445 3,429 4,326 4,305

32,765 32,062 36,653 35,908


41

20 Creditors: amounts falling due after more than one year



£’000 £’000 £’000 £’000

Governmentcapitalgrants 22,189 22,189 19,707 19,707

Leasepremium 4,125 4,125 4,250 4,250

Obligationsunderfinancelease 150 150 300 300

Unsecuredloans 128,233 128,233 115,457 115,457

154,697 154,697 139,714 139,714

Analysisofunsecuredloans:

Due within one year or on demand (Note 19) 1,224 1,224 1,180 1,180

Duebetweenoneandtwoyears 2,923 2,923 2,924 2,924

Duebetweentwoandfiveyears 4,784 4,784 9,892 9,892

Dueinfiveyearsormore 120,526 120,526 102,641 102,641

Due after more than one year 128,233 128,233 115,457 115,457

Total unsecured loans 129,457 129,457 116,637 116,637

TheUniversity’slong-termloansarecurrentlyheldwithBarclays,Lloyds,SantanderandprivateplacementswithBabson,PRICOAandAllianz.Duringtheyearended31July2016,theremaining£45,000kfroma£75,000kBarclaysloanfacilitywasrepaidand£60,000kdrawninnewprivateplacements.Inadditionarevolvingcreditfacilityfor£25,000kwassecuredonthe29thJuly2016,thiswasundrawnatthe31July2016.

Theloansareunsecured,ofthebankloansoutstanding£6,000kisfixedatarateof4.99%,£6.100kisfixedat5.40%,£6,100kisfixedat5.34%,£6,100kat5.23%,£12,000kisfixedat5.34%,£6,300kisanRPIinflationlinkedloan,£9,000kisfixedat3.99%,£11,000kisfixedat4.06%and£12,500kisfixedat5.02%.

Oftheprivateplacementsoutstanding,£10,000kisfixedat3.53%for15years,£15,000kisfixedat3.76%for20years,£25,000kisfixedat3.91%for25yearsand£10,000kisfixedat3.94%for30years.

21 Pension provisions

Consolidated

Obligation to fund deficit on

USS Pension

Pension scheme provision under

FRS102 (note 29)Total Pensions

Provisions£’000 £’000 £’000

At1August2015 1,305 81,576 82,881

Utilisedinyear (15) - (15)

Additionsin2015/16 - 42,418 42,418

At 31 July 2016 1,290 123,994 125,284

University

Obligation to fund deficit on

USS Pension

Pension scheme provision under

FRS102 (note 29)Total Pensions

Provisions£’000 £’000 £’000

At1August2015 1,305 81,576 82,881

Utilisedinyear (15) - (15)

Additionsin2015/16 - 42,418 42,418

At 31 July 2016 1,290 123,994 125,284

USS deficitTheobligationtofundthepastdeficitontheUniversity’s’SuperannuationScheme(USS)arisesfromthecontractualobligationwiththepensionschemefortotalpaymentsrelatingtobenefitsarisingfrompastperformance.ManagementhaveassessedfutureemployeeswithintheUSSschemeandsalarypaymentovertheperiodofthecontractedobligationinassessingthevalueofthisprovision.


42

22 Endowment Reserve

Restrictednetassetsrelatingtoendowmentsareasfollows:

Expendable endowments

2016 2015

Total Total

£’000 £’000

Balance at 1 August 1,719 1,798

Newendowments 192 527

Investmentincome 12 16

Expenditure (219) (622)

Total endowment comprehensive income for the year (15) (79)

At 31 July 1,704 1,719

Analysisbyasset

Cash&cashequivalents 1,704 1,719

1,704 1,719

23 Restricted Reserves

Reserveswithrestrictionsareasfollows:

Donations

2016 2015

Total Total

£’000 £’000

Balances at 1 August 429 425

Newdonations 525 264

Investmentincome 1 -

Expenditure (232) (260)

Total restricted comprehensive income for the year 294 4

At 31 July 723 429

24 Cash and cash equivalents

At 1 August 2015 Cash Flows At 31 July 2016

Consolidated £’000 £’000 £’000

Cashandcashequivalents 22,563 15,075 37,638

22,563 15,075 37,638


43

25 Capital commitments

Provisionhasnotbeenmadeforthefollowingcapitalcommitmentsat31July2016:

2016 2015


£’000 £’000 £’000 £’000

Authorisedandcontracted 30,344 30,344 4,956 4,956

Authorisedbutnotcontracted 5,676 5,676 14,056 14,056

36,020 36,020 19,012 19,012

26 Lease obligations

Totalrentalspayableunderoperatingleases:

2016

Land and Buildings

Plant and Machinery Other leases Total 2015

£’000 £’000 £’000 £’000 £’000

Payable during the year 2,813 - 3,772 6,585 4,525

Future minimum lease payments due:

Notlaterthan1year 2,287 - 3,837 6,124 5,869

Laterthan1yearandnotlaterthan5years 1,869 - 9,742 11,611 14,562

Laterthan5years 11,800 - - 11,800 11,871

Total lease payments due 15,956 - 13,579 29,535 32,302

27 Subsidiary undertakings

Thesubsidiarycompanies(allofwhichareregisteredinEngland&Wales),wholly-ownedoreffectivelycontrolledbytheUniversity,areasfollows:

Company Principal Activity Status Note

OxfordBrookesEnterprisesLtd ConsultancyandManagementofconferenceandrelatedcommercialfacilities

100%owned 16

OxfordBrookesServicesLtd Dormant 100%owned

28 Connected charitable Institutions

TheUniversityhasnoconnectedcharitableinstitutions.


44

29 Pension Schemes

Differentcategoriesofstaffwereeligibletojoinoneofthreedifferentschemes:

n Teachers’PensionSchemeEnglandandWales(TPS),foracademicandrelatedstaff

n LocalGovernmentPensionScheme(LGPS),fornon-teachingstaff

n Universities’SuperannuationScheme(USS),forstaffwhoarealreadyintheUSSschemewhentheyjoinOxfordBrookesUniversity

Allschemesaredefined-benefitschemes,theassetsofwhichareheldinseparatetrusteeadministeredfunds.

Year Ended Year Ended31 July 16 31 July 15

£’000 £’000

TPS:contributionspaid 4,659 4,122

LGPS:

–contributionspaid 6,531 6,373

–FRS102Charge 2,602 1,538

USS

–contributionspaid 715 740

–FRS102 (61) 517

14,446 13,290

29a Teachers’ Pension Scheme (TPS)

AformalactuarialreviewoftheTPSisundertakenbytheGovernmentActuarynotlessthaneveryfouryears.ContributionsarepaidbytheUniversityattheratespecified.TheschemeisUnfundedandcontributionsaremadetotheExchequer.ThepaymentsfromtheschemearemadefromfundsvotedbyParliament.Asfrom1January2007,andaspartofthecostsharingagreement,thecontributionratewasassessedat20.5%whichtranslatestoanemployeecontributionof6.4%andanemployercontributionof14.1%payable.

Followingthelatestactuarialvaluationthatwascarriedoutasat31March2012,thevaluationresultsspecifytherateofemployercontributionpayableforthefouryearperiodfrom1April2015andtheemployercostcap,bothofwhicharetobesetinregulations.TheemployercontributionratepayablefromApril2015hasbeensetat16.4%ofpensionablepay,withanaverageemployeecontributionrateof9.6%,givingatotalcontributionrateof26%.FollowingagreementbetweentheDepartmentforEducationandHMTreasury,theemployercontributionratewasimplementedon1September2015.TheemployercontributionrateisbasedontheimplementationperiodspecifiedintheDirectionsandhasnotbeenadjustedforlaterimplementation.Inisolation,thiswillresultinasmalldeficitatthenextvaluation.

Theemployercontributionrateisexpectedtobereassessedattheactuarialvaluationtobecarriedoutasat31March2016(andeachsubsequentfouryearlyvaluation).Thenextrevisiontotheemployercontributionrateisexpectedtotakeeffectfrom1April2019.Thefinancialpositionrelativetotheemployercostcapwillalsobereconsideredateachfouryearlyvaluation.

UnderthedefinitionssetoutinSection28ofFRS102,theTPSisamulti-employerdefinedbenefitpensionscheme,theassetsofwhichareheldseparatelyfromthoseoftheUniversityinindependentlyadministeredfunds.AstheUniversityisunabletoidentifyitsshareoftheassetsandliabilitiesofthegroupscheme,itaccountsforcontributionsasiftheyweretoadefinedcontributionpensionscheme.Contributionsarechargedtothestatementofconsolidatedincomeintheyeartowhichtheyrelate.TheUniversityhassetoutbelowtheinformationavailableonthedeficitintheschemeandtheimplicationsfortheUniversityintermsofanticipatedcontributionrates.

Theassumptionsandotherdatathathavethemostsignificanteffectonthedeterminationofthecontributionlevelsareasfollows:

LatestActuarialValuation 31March2014

Grossrateofreturn 5.06%

Realrateofreturn 3.00%

Longtermsalarygrowth 4.75%pa,2.75%painexcessofassumedCPI

Aggregatedschemeassets £176.6bn

Aggregatedschemeliabilities (£191.5bn)

Duringtheyearallemployerspaidthesamecontributionrate

14.1%

Duringtheyearallemployee’s’contributionvarieddependentontimeequivalentsalary

between6.4%and12.4%membersfull

ThevalueofpensionpaymentsmadeinyeartotheTeachers’PensionSchemewas£4,659k(2015:£4,122k).


45

29b Local Government Pension Scheme (Retirement Benefits) Disclosure for the accounting year ending 31 July 2016 Local Government Pension Scheme

Non-academicemployeesoftheUniversitycanparticipateintheLGPS,adefinedbenefitscheme,withtheassetsheldinseparatetrustee-administeredfunds.

Thelastformaltriennialactuarialvaluationoftheschemewasperformedasat31March2016byaprofessionallyqualifiedactuary.

Duringtheaccountingyear,theUniversitypaidcontributionstothepensionschemeattherateof14.1%ofpensionablesalaries,plusayearlydeficiencychargeof£1,560kfrom1April2015and£1,631kfrom1April2016.

Theemployeeratewasbetween5.5and7.5%ofpensionablesalaries.

Thefollowinginformationisbaseduponafullactuarialvaluationofthefundat31March2013updatedto31July2016byaqualifiedindependentactuary.

Assumptions ThefinancialassumptionsusedtocalculateschemeliabilitiesunderFRS102are:

At31July2016

At31July2015

%pa %pa

PriceInflation(RPI) 3.0 3.5

PriceInflation(CPI) 2.1 2.6

Rateofincreaseinsalaries 3.3 3.8

RateofincreaseofpensionsinpaymentforLGPSmembers

2.1 2.6

Discountrate 2.5 3.8

Themostsignificantnon-financialassumptionistheassumedleveloflongevity.Thetablebelowshowsthelifeexpectancyassumptionsusedintheaccountingassessmentsbasedonthelifeexpectancyofmaleandfemalemembersatage65.

PensionerMale

Non-pensionerMale(currently

aged45)

PensionerFemale

Non-pensionerFemale

(currentlyaged45)

At31July2015 23.3 25.5 25.7 28.0

At31July2016 23.3 25.6 25.8 28.1


46

29b Local Government Pension Scheme continued

Scheme assets and expected rate of return for LGPS Foraccountingyearsbeginningonorafter1January2015,theexpectedreturnandtheinterestcosthavebeenreplacedwithasinglenetinterestcost,whicheffectivelysetstheexpectedreturnequaltothediscountrate.

The assets in the scheme were:Fair value as at

31 July 16 31 July 15 31 July 14

£’000 £’000 £’000

Equities 123,702 115,852 110,090

Gilts 25,014 21,535 24,375

Otherbonds 6,942 6,057 -

Property 14,097 12,061 9,901

Cash 3,535 5,589 7,172

LLPs 6,635 6,147 -

Hedgefunds - 5 2,790

Diversifiedgrowthfund 8,029 8,072 -

Total 190,954 175,318 154,328

31July16 31July15 31July14

%pa %pa %pa

Expectedreturn 2.5 3.8 4.2

Totalreturnonfundassets 13,280 16,010 -

Year Ended Year Ended

31 July 16 31 July 15

£’000 £’000

Analysis of the amount shown in the balance sheet for LGPS:

Schemeassets 190,954 175,318

Schemeliabilities (314,948) (256,894)

Deficit in the scheme – net pension liability recorded within pension provisions (Note 24)

(123,994) (81,576)

Currentservicecost 9,047 7,913

Pastservicecosts 283 6

Totaloperatingcharge: 9,330 7,919

Analysis of the amount charged to interest payable/credited to other finance income for LGPS

Interestcost 9,686 9,687

Expectedreturnonassets (6,709) (6,610)

Net charge to other finance income 2,977 3,077

Administrationexpenses 145 169

Total profit and loss charge before deduction for tax 12,452 11,165

CumulativeactuariallossrecognisedasothercomprehensiveincomeforLGPS

At 31 July 2016

At 31 July 2015

£’000 £’000

Cumulativeactuariallossesrecognisedatthestartoftheyear 81,492 72,429

Cumulativeactuariallossesrecognisedattheendoftheyear 123,905 81,492


47

29b Local Government Pension Scheme continued

Analysis of movement in the present value of LGPS liabilities

Year to 31 July 16

Year to 31 July 15

£’000 £’000

Present value of LGPS liabilities at the start of the year 256,894 227,840

Currentservicecost(netofmembercontributions) 9,047 7,913

Pastservicecost 283 6

Interestcost 9,686 9,687

Actualmembercontributions(includingnotionalcontributions) 2,532 2,415

Actuarialloss/(gain) 43,266 13,680

Actualbenefitpayments (6,759) (4,647)

Experience(gain)/lossondefinedbenefitobligation (1) -

Present value of LGPS liabilities at the end of the year 314,948 256,894

Analysis of movement in the fair value of scheme assets

Year to 31 July 16

Year to 31 July 15

£’000 £’000

Fair value of assets at the start of the year 175,318 155,328

Returnonassetslessinterest 6,571 9,400

Interestonassets 6,709 6,610

Administrationexpenses (145) (169)

ActualcontributionspaidbyUniversity 6,728 6,381

Actualmembercontributions(includingnotionalcontributions) 2,532 2,415

Actualbenefitpayments (6,759) (4,647)

Fair value of scheme assets at the end of the year 190,954 175,318

LGPSassetsdonotincludeanyoftheUniversity’sownfinancialinstruments,oranypropertyoccupiedbytheUniversity.

Remeasurements in other comprehensive income

Year to 31 July 16

Year to 31 July 15

£’000 £’000

Returnonfundassetsinexcessofinterest 6,571 9,400

Changeinfinancialassumptions (43,266) (13,680)

Experiencegainondefinedbenefitobligation 1 -

Remeasurement of the defined liability (36,694) (4,280)


48

29c The Universities Superannuation Scheme

TheinstitutionparticipatesintheUniversitiesSuperannuationScheme.Throughoutthecurrentandprecedingyears,theschemewasadefinedbenefitonlypensionschemeuntil31March2016whichwascontractedoutoftheStateSecondPension(S2P).Theassetsoftheschemeareheldinaseparatetrustee-administeredfund.Becauseofthemutualnatureofthescheme,thescheme’sassetsarenothypothecatedtoindividualinstitutionsandascheme-widecontributionrateisset.Theinstitutionisthereforeexposedtoactuarialrisksassociatedwithotherinstitutions’employeesandisunabletoidentifyitsshareoftheunderlyingassetsandliabilitiesoftheschemeonaconsistent

andreasonablebasisandtherefore,asrequiredbySection28ofFRS102“Employeebenefits”,accountsfortheschemeasifitwereadefinedcontributionscheme.Asaresult,theamountchargedtotheincomeandexpenditureaccountrepresentsthecontributionspayabletotheschemeinrespectoftheaccountingperiod.Sincetheinstitutionhasenteredintoanagreement(theRecoveryPlanthatdetermineshoweachemployerwithintheschemewillfundtheoveralldeficit),theinstitutionrecognisesaliabilityforthecontributionspayablethatarisefromtheagreementtotheextentthattheyrelatetothedeficitandtheresultingexpenseintheStatementofconsolidatedIncome.

Pension costs ThetotalcostchargedtotheStatementofConsolidatedIncomeis(£701k),whichismadeupofthefollowingentries:

2016 2015£’000 £’000

Employercontributionspaid 716 740

InterestPayable–Unwindingofdiscount 46 27

Elementofemployercontributionsallocatedagainstthedeficit (61) (116)

Differencebetweenactualcontributionsandpastexpectations - 633

TotalamountchargedtoStatementofComprehensiveIncome 701 1,284

BroughtForwardPensionProvision 1,305 761

Movement 46 660

CashpaymentsmadetoUSS (61) (116)

CarriedforwardPensionProvision(Note21) 1,290 1305

Definedliabilitynumbersfortheschemehavebeenproducedusingthefollowingassumptions:2016 2015

Discountrate 3.6% 3.3%

Pensionablesalarygrowth n/a 3.5%inthefirstyearand4.0%thereafter

Pensionincreases(CPI) 2.2% 2.2%

Themaindemographicassumptionusedrelatestothemortalityassumptions.MortalityinretirementisassumedtobeinlinewiththeContinuousMortalityInvestigation’s(CMI)S1NAtablesasfollows:

Malemembers’mortality 98%ofS1NAtables–Noagerating

Femalemembers’mortality 99%ofS1NAtables–rateddown1year

UseofthesemortalitytablesreasonablyreflectstheactualUSSexperience.ToallowforfurtherimprovementsinmortalityratestheCMI2014projectionswitha1.5%palongtermratewerealsoadopted.

Thecurrentlifeexpectanciesonretirementatage65are:2016 2015

Malescurrentlyaged65(years) 24.3 24.2

Femalescurrentlyaged65(years) 26.5 26.4

Malescurrentlyaged45(years) 26.4 26.3

Femalescurrentlyaged45(years) 28.8 28.7

Schemeassets £49.8bn £49.1bn

Totalschemeliabilities £58.3bn £60.2bn

FRS102totalschemedeficit £8.5bn £11.1bn

FRS102totalfundinglevel 85% 82%

Thelatestavailablefullactuarialvaluationoftheschemewasat31March2014(“thevaluationdate”),whichwascarriedoutusingtheprojectedunitmethod.Sincetheinstitutioncannotidentifyitsshareofschemeassetsandliabilities,thefollowingdisclosuresreflectthoserelevantfortheschemeasawhole.The2014valuationwasthethirdvaluationforUSSunderthescheme-specificfundingregimeintroducedbythePensionsAct2004,whichrequiresschemestoadoptastatutoryfunding

objective,whichistohavesufficientandappropriateassetstocovertheirtechnicalprovisions.Atthevaluationdate,thevalueoftheassetsoftheschemewas£41.6billionandthevalueofthescheme’stechnicalprovisionswas£46.9billionindicatingashortfallof£5.3billion.Theassetsthereforeweresufficienttocover89%ofthebenefitswhichhadaccruedtomembersafterallowingforexpectedfutureincreasesinearnings.


49

30 Transition to FRS102 and the 2015 SORP

Asexplainedintheaccountingpolicies,thesearetheUniversity’sfirstfinancialstatementspreparedinaccordancewithFRS102andtheSORP2015.Theaccountingpoliciessetoutthestatementofaccountingpolicieshavebeenappliedinpreparingthefinancialstatementsfortheyearended2016,thecomparativeinformationpresentedinthesefinancialstatementsfortheyearended2015andinthepreparationofanopeningFRS102StatementofFinancialPositionat1August2014.InpreparingitsFRS102,SORPbasedStatementofFinancialPosition,theUniversityhas

adjustedamountsreportedpreviouslyinfinancialstatementspreparedinaccordancewithitsoldbasisofaccounting(UKGAAPand2007SORP).

AnexplanationofhowthetransitiontoFRS102andtheSORP2015hasaffectedtheUniversity’sconsolidatedfinancialposition,financialperformanceandcashflowsissetoutinthefollowingtables.AlladjustmentsaffectboththeUniversityandGroup,therearenoadjustmentsthatareapplicabletothesubsidiarycompanies.

Consolidated balance sheet Year end 31 July 2014 Year end 31 July 2015Note

2007SORP

Effectoftransitionto2015

SORP2015

SORP2007

SORP

Effectoftransitionto2015

SORP2015

SORP

£’000 £’000 £’000 £’000 £’000 £’000

Non-current assets

Intangibleassets 1,237 - 1,237 2,406 - 2,406

FixedAssets A,B,C,D,E 307,898 74,193 382,091 303,775 73,978 377,753

Investments 115 - 115 115 - 115

309,250 74,193 383,443 306,296 73,978 380,274

Endowment assets F 2,580 (2,580) - 2,502 (2,502) -

Current assets

Stock 136 - 136 139 - 139

Tradeandotherreceivables 10,116 - 10,116 9,411 5 9,416

Investments F 19,773 (19,773) - 24,474 (16,474) 8,000

Cashandcashequivalents F 6,435 22,353 28,788 3,586 18,977 22,563

36,460 2,580 39,040 37,610 2,508 40,118

Less:Creditors:amountsfalling

duewithinoneyear C,G,H (26,730) (2,291) (29,021) (31,917) (1,964) (33,881)

Serviceconcessionliabilitiesduewithinoneyear D - (2,743) (2,743) - (2,773) (2,773)

Net current assets 9,730 (2,454) 7,276 5,693 (2,229) 3,464

Total assets less current liabilities 321,560 69,159 390,719 314,491 69,247 383,738

recordedwithinotherComprehensiveIncome.

Creditors:amountsfallingdueaftermorethanoneyear

C,H (131,866) (23,393) (155,259) (115,457) (24,257) (139,714)

Provisions

Otherpensionliability I (72,512) (761) (73,273) (81,576) (1,305) (82,881)

Total net assets 117,182 45,005 162,187 117,458 43,685 161,143

Deferred capital grants H 23,653 (23,653) - 24,481 (24,481) -

Restricted Reserves

Incomeandexpenditurereserve–endowmentreserve

G 2,580 (782) 1,798 2,502 (783) 1,719

Incomeandexpenditurereserve–restrictedreserve

G - 423 423 - 429 429

Unrestricted Reserves

Incomeandexpenditurereserve–unrestricted

B,D,E,G,I, 64,608 (10,018) 54,590 64,820 (10,514) 54,306

Revaluationreserve A 26,341 79,035 105,376 25,655 79,034 104,689

93,529 68,658 162,187 92,977 68,166 161,143

Total Reserves 117,182 45,005 162,187 117,458 43,685 161,143


50

30 Transition to FRS102 and the 2015 SORP continued

Consolidated Statement of Comprehensive Income and Expenditure Yearto31July2015

Notes 2007 SORPSTRGLItems*

Effectoftransitionto2015SORP 2015 SORP

£’000 £’000 £’000 £’000

Income

Fundingbodygrants H 16,221 - 191 16,412

Tuitionfeesandeducationcontracts 116,266 - - 116,266

Researchgrantsandcontracts 4,279 - - 4,279

Otherincome(adjustedtoexcludeincomefromjointventures) C,H,D 43,353 - 113 43,466

Investmentincome G 731 - (500) 231

Total income before donations and endowments 180,850 - (196) 180,654

Donationsandendowments G - - 488 488

Total income 180,850 - 292 181,142

Expenditure

Staffcosts I 92,063 - 518 92,581

Otheroperatingexpenses D,E,I 63,239 - (2,570) 60,669

Depreciation,amortisation,impairmentanddisposals C,D,E 12,654 - 2,840 15,494

Interestandotherfinancecosts D,J 5,267 - 3,132 8,399

Total expenditure 173,223 - 3,920 177,143

Surplus before taxation 7,627 - (3,628) 3,999

Taxation - - - -

Surplus for the year 7,627 - (3,628) 3,999

Actuarial(loss)/gaininrespectofpensionschemes J - (7,414) 3,134 (4,280)

Total comprehensive income (expentiure) for the year 7,627 (7,414) (494) (281)


51

Statement of Changes in Equity

Consolidated Income and expenditure account Revaluation

reserve Total

Note Endowment Restricted Unrestricted

Deferredcapitalgrants

£’000 £’000 £’000 £’000 £’000 £’000

Balance at 1 August 2014 under SORP 2007 2,580 - 64,607 23,653 26,342 117,182

Deferredcapitalgrants H - - 3,134 (23,653) - (20,519)

RevaluationofLand A - - - - 79,034 79,034

Impairment B - - (5,469) - - (5,469)

Wheatleyaccessroad E - - (2,715) - - (2,715)

Leasepremium D - - (4,500) - - (4,500)

Endowments G (782) 425 293 - - (64)

USSPensiondeficit J - - (761) - - (761)

Balance at 1 August 2014 under SORP 2015 1,798 425 54,589 - 105,376 162,188

Balance at 1 August 2015 under SORP 2007 2,502 - 64,820 24,481 25,655 117,458

Deferredcapitalgrants H - - 3,153 (24,481) - (21,328)

RevaluationofLand A - - - - 79,034 79,034

Impairment B - - (5,469) - - (5,469)

Wheatleyaccessroad E - - (2,810) - - (2,810)

Leasepremium D - - (4,375) - - (4,375)

Endowments G (783) 429 292 - - (62)

USSPensiondeficit J - - (1,305) - - (1,305)

Balance at 31 July 2016 1,719 429 54,306 - 104,689 161,143


52

30 Transition to FRS102 and the 2015 SORP continued

NOTES

Note A Revaluation of land TheoneoffrevaluationoflandontransitiontoFRS102,leadtoanincreaseintherevaluationreserveandfixedassetsof£79,034kinboth2014and2015.

Note B Impairment from revaluationTherevaluationleadtoanimpairmentofthevalueoflandatMarstonroadof£5,469kreducingfixedassetsandreservesbythatamountin2014and2015.

Note C Embedded leaseFRS102requiresentitiestoconsiderwhetheranyofitscontractualarrangementscontainembeddedleases.TheUniversityrevieweditscontractsandidentifiedthatthecateringcontractandembeddedleasefornewcateringequipmentwhichtheUniversityconveystherighttouseandcontrol.Anadditionalassetandliabilityof£600kin2014and£450kin2015hasbeenrecognisedinthefinancialstatements.

Creditors:amountsfallingduewithinoneyearincreasedby£150k(2014&2015)beingthe1yearreleaseofthecateringcontractembeddedlease

Creditors:amountsfallingdueaftermorethanoneyearincreasedby£450k(2014)and£300k(2015),beingthebalance.

Otherincomeanddepreciationhaveincreasedby£150kduetotheyearlydepreciationandreductionintheliability.

Note D Service concessionFRS102includesnewguidanceonserviceconcessionarrangements;thearrangementwithUniversityPartnershipsProgramme(UPP)fortheprovisionofaccommodationatCheneyHallofresidencemeetsthecriteriaofaserviceconcessionandthereforemustbeaccountedforonthebalancesheet.

TheCheneyHallserviceconcessionarrangementleadtoanincreaseinthefixedassetsof£2,743kin2014and£2,773kin2015andanassociatedoneyearliability.

Operatingexpenditurehasreducedby£2,883k,whichissplitbetweenadditionaldepreciationof£2,743kandadditionalinterestof£140k.

TheCheneyHallserviceconcessionleasepremiumhadpreviouslybeencreditedtoincomeonreceiptin2008,underFRS102itisheldincreditorsandreleasedovertheremaininglifeoftheleaseto2050.

Creditors:amountsfallingduewithinoneyearincreasedby£125k(2014&2015)beingthe1yearreleaseoftheCheneyHallsleasepremium.

Otherincomehasincreasedby£125kduetothereleaseoftheCheneyleasepremium.

Note E ImpairmentTheWheatleyaccessroadwasbuiltbytheUniversityin2013-2015toimproveaccesstotheWheatleycampus,itwashandedovertotheCouncilin2016andisthereforenotanassetoftheUniversity.

Theimpairmenthasbeenprocessedasatransitionadjustment,butdoesnotrelatetoFRS102.

Reservesandfixedassetshavereducedby£2,715kin2014and£2,810kin2015

In2015expenditureontheWhealteyaccessroadthatwaspreviouslycapitalisedof£146kwasexpensedanddepreciationreducedby£53k.

Note FTotalcashisthesameunderFRS102,thesplitbetweenthethreecashlinesisdifferent(Endowmentasset,currentassetinvestmentsandcashandcashequivalents).EndowmentassetcashispartofthegeneralcashbalanceunderFRS102.InvestmentsunderFRS102relatetolongertermdeposits,3monthsorgreateratthebalancesheetdate.

Note GTheendowmentbalancehasunderFRS102beenspiltbetweenendowments,restricteddonationsandunrestricteddonations.Incomefromendowmentsanddonationsisnowrecognisedwhenitisreceived;anyunspentamountsareheldinrestrictedreservesunlessthereisaperformancerelatedconditiononadonation.

Theyearendbalanceshavebeensplitasfollows

2014 2015

Endowmentreserve 1,798 1,719

Restrictedreserve 425 429

Unrestrictedreserve 293 285

Creditorswithinoneyear 64 69

2007SORPbalance 2,580 2,502

EndowmentincomeunderFRS102isincomeentitledtoinyearratherthanreleasedtomatchexpenditure.

£12kofunrestricteddonations,previouslyshownininvestmentincomeandbutnowtakentoincomeonreceipt

Note H Capital GrantsCapitalgrantsarenolongerheldasaseparatebalance.UndertheaccrualsmethodGovernmentcapitalgrantsareheldascreditorsuntiltheyarereleasedinlinewithdepreciation,non-governmentcapitalgrantsaretakentoincomewhentheyarereceived.

Thebalanceunderthe2007SORPhasbeensplitasfollowsunderFRS102

2014 2015

Unrestrictedreserves 3,134 3,153

Creditorsafteroneyear 18,568 19,708

Creditorswithinoneyear 1,951 1,620

2007SORPbalance 23,653 24,481

Anadditional£191kofgrantfromGovernmentsourcespreviouslyclassifiedasothercapitalgrantsasnon-HEFCEwasrecognisedinFundingbodygrantsin2015andotherincomewasreducedby£174kduetoothercapitalgrantspreviouslyreleasedagainstdepreciation.


53

Note I University’s Superannuation Pension Scheme (USS)Thepensionliabilityhasincreasedby£761kin2014and£1,305kin2015,duetotheadditionoftheUSSdeficitintothefinancialstatements.Theincreaseintheliability,lesstheamountpaidinyeartowardstheliabilityreductiongoesthroughstaffcosts,anincreaseof£518kon2015.

Note J Defined Benefit Pension Scheme, Local Government Pension Scheme (LGPS) UnderpreviousUKGAAPtheUniversityrecognisedanexpectedreturnondefinedbenefitplan

Assetsintheprofitandlossaccount.UnderFRS102anetinterestexpense,basedonthenetdefinedbenefitliability,isrecognisedinthestatementofconsolidatedincomeandexpenditure.TherehasbeennochangeinthedefinedbenefitliabilityfortheLGPSpensionscheme.Theeffectofthechangehasbeentoreducetheactuariallossby£3,134k,increasethepensioninterestchargeby£2,991kandanadditionalpensionadministrationchargeinotheroperatingexpensesof£169k.

Cash flows TheUniversity’scashflowstatementreflectsthepresentationalrequirementsofFRS102,whichisdifferenttoUKGAAP.InadditionthecashflowstatementreconcilestocashandcashequivalentswhereasunderUKGAAPthecashflowstatementreconciledtocash.TotalcashflowremainsthesameunderFRS102,cashinflowfromoperatingactivitieshasincreasedby£2,756kandtotalcashoutflowfromfinancingactivitieshasincreasedbythesameamount.ThisisduetothefollowingclassifiedasoperatingcashflowsunderSORP2007,nowclassifiedasfinancingcashflowsunderFRS102.

£’000

DepreciationontheCheneyHallserviceconcession 2,744

InterestontheCheneyHallserviceconcession 140

Endowmentincome (127)

Total 2,756


financial statements 2015/16€¦ · financial statements for the year ended 31 july 2016...

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