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Financial Statements 2016/17

University of OxfordFinancial Statements 2016/17

www.ox.ac.uk

Contents

Introduction 1

FinancialHighlights 1

Four-YearSummaryofKeyStatistics 3

StrategicReview 4

FinancialReview 18

CorporateGovernanceStatement 22

MembershipofCouncil 24

RiskManagementStatement 26

StatementofInternalControl 27

IndependentAuditor’sReporttoCouncil 28

ConsolidatedandUniversityStatementsofComprehensiveIncome 30

ConsolidatedandUniversityStatementsofChangesinReserves 31

ConsolidatedandUniversityBalanceSheets 32

ConsolidatedStatementofCashFlows 33

StatementofAccountingPolicies 34

AccountingJudgmentsandEstimates 42

NotestotheFinancialStatements 43

OxfordUniversityPress:FinancialReportExtracts 73

COVER: Oxford University Curiosity Carnival, 2017. Photos by Ian Wallman

Financial Statements 2016/17 University of Oxford | 1

Introduction Inthefinancialyear2016/17theUniversitygeneratedatotalcomprehensiveincomeof£219.7millionandmanagedtotalfundsof£3.2billion.Totalincomeincreasedby6%to£1.4billionandtotaldonationsraisedbytheOxfordThinkingCampaignreached£2.7billion.TheOxfordEndowmentFundachievedareturnof13.4%andtheUniversityinvested£139millioninfixedassets.

£565mIncome from research grants and contracts

6%Increase in income to

£1.4bn

13.4%The return achieved

by the Oxford Endowment Fund

£2.7bnTotal raised towards

£3bn campaign goal

£220mTotal comprehensive

income

£139mCapital investment

Financial Highlights

2 | University of Oxford Financial Statements 2016/17

Consolidated University Income and Expenditure 2016/17

Income Expenditure

Investment income 1%

Funding body grants 14%

Tuition fees and

education contracts 22%

Other income 16%

Depreciation 7%

Research grants and

contracts 40%

Donations and endowments 7%

Staff costs including research

51%

Interest and other finance

costs 1%

Operating expenditure 41%

120,000 school children participated in educational sessions in the University’s

museums

Oxford University Innovation (OUI), the

research commercialisation office of Oxford University,

was named Technology Transfer Office of the Year

at the Global University Venturing Awards

Since its inception in 2010, UNIQ Summer School brought 6,375 state school pupils to Oxford

for a summer programme

The Ashmolean succeeded in raising the £1.35 million needed to buy King Alfred’s

coins, supported by over 700 members of the public

Out of £60.9 million spent on bursaries and

scholarships, £6.2 million was distributed to 2,300

undergraduate studentsOxford ranked

number 1 in the Times Higher

Education World University Rankings

Financial support of up to £11,000 per year available for undergraduate students from disadvantaged backgrounds

Launch of OSCAR (the Oxford Suzhou Centre for Advanced

Research), a major new research centre in Suzhou,

near Shanghai

Opened the world’s largest health big data institute, the Li Ka Shing Centre for Health Information and Discovery

Key achievements

Over 95% of Oxford leavers are employed

or in further study six months after

graduating

According to the Research Excellence Framework Oxford has the largest

volume of world leading research in the country

Oxford manages over 2,800 patents and spun out 21 new companies

in 2017


Year ended 31 July 2014£’m

2015£’m

2016£’m

2017£’m

FundingbodygrantsAcademicfeesandsupportgrantsResearchgrantsandcontractsOtherincomeInvestmentincomeDonationsandnewendowments

217.1235.9471.4239.8

30.334.5

186.1265.7608.0345.7

4.7113.7

192.5293.5537.4213.0

8.876.6

194.6307.2564.9227.7

14.491.6

TOTAL INCOME

TOTAL EXPENDITURE

1,229.0

1,146.3

1,523.9

1,318.5

1,321.8

1,336.5

1,400.4

1,397.0SURPLUS/(DEFICIT)BEFOREOTHERGAINS 82.7 205.4 (14.7) 3.4TOTAL COMPREHENSIVE INCOME 93.5 392.3 172.9 219.7Net cash flow from operating activities 10.6 167.6 35.5 46.7Non-currentassets

Netcurrentassets/(liabilities)

Longtermcreditors&provisions

2,802.1

(222.9)

(220.9)

3,199.7

70.1

(430.1)

3,468.7

9.7

(465.8)

3,610.7

102.6

(481.0)Total Net Assets 2,358.3 2,839.7 3,012.6 3,232.3Student numbersFull-timeequivalentstudents–undergraduates 11,772 11,703 11,603 11,728Full-timeequivalentstudents–postgraduates 9,850 10,173 10,499 10,941Visitingandrecognisedstudents 494 472 500 526Total students at 1 December in the financial year

22,116 22,348 22,602 23,195

Average number of staff - full-time equivalent

11,307 11,846 12,378 12,721

Staffcostsasapercentageofexpenditure 52.0 50.9 50.9 51.2Size of EstateBuildings(squaremetres,thousands) 636 647 655 659

Four-Year Summary of Key Statistics

Thefour-yearsummaryexcludesOxfordUniversityPress.

On30October2017CouncilapprovedtheinclusionofthefinancialstatementsofthePressin2017/18.

Thefiguresfor2014havebeenrestatedforFRS102forconsistencysoaredifferentfromthefigureswhichappearedinthepublishedfinancialstatementsfor2013/14.


1Availableat:www.ox.ac.uk/about/organisation/strategic-plan

Core strategies

Enabling strategies

n Research

n Education

n Widening engagement

n Personnel

n Finance and capital

n Estates

n IT infrastructure

n Alumni relations and development

VisionThe University of Oxford aims

to lead the world in research and education. We seek to do this in ways which benefit society on a

national and a global scale.

We will build on the University’s long traditions of independent

scholarship and academic freedom while fostering a

culture in which innovation plays an important role.

Public benefitTheprincipalobjectivesoftheUniversityaretheadvancementoflearningbyteachingandresearchanditsdisseminationbyeverymeans.InitsStrategicPlan2013–181,theUniversitysetsoutitsaspirationsto:

n developitscapacitytogenerateandshareknowledgeintheUK,Europe,andglobally,ensuringsignificantcontributionstopublicpolicy-makingandeconomicgrowth;

n workeffectivelywithotherinstitutionsandorganisations,wheresuchpartnershipscanleadtooutstandingresearchandteaching;

n fulfiltheaimsthatnopotentialstudentshouldbedeterredfromapplyingtoOxfordbyfinancialorotherbarriersandthatnostudent’ssuccessshouldbehamperedbyfinancialdifficulties;

n ensure,throughacommitmenttothepersonaleducationofeachstudent,aqualityofeducationandexperiencewhichenablesstudentstoapplythevalues,skills,andintellectualdisciplinetheyhaveacquiredintheirfuturelivesandcareers,andwhichgeneratesalifelongsenseofconnectionwithOxford;

n contributeeffectivelytothecultural,social,andeconomiclifeofthecityofOxfordandtheOxfordshireregion;and

n recruitandretainthebestacademicstaffandensurethatunder-representedgroupshaveequalityofopportunityinrecruitment,personaldevelopment,andcareerprogressioninallareasofemploymentintheUniversity.

ThefollowingsectionsprovidefurtherdetailonhowtheUniversity’scorestrategiesonresearch,education,wideningengagementandpersonnelsupporttheseaspirations,buildinguponexistingstrengthsandsharingknowledgewiththewiderworldthusprovidingpublicbenefitandfulfillingtheUniversity’scharitableobjectives.Enablingstrategiesonfinance,capital,valueformoney,estates,ITinfrastructureandalumnirelationsanddevelopmentdemonstratehowtheUniversityaimstosupportitscorestrategieswithappropriatefacilities,servicesandsystems.

FurtherinformationabouttheUniversity’sactivitiesoverthelastyearcanbefoundintheAnnualReview,availableontheUniversitywebsiteat: www.ox.ac.uk/about/organisation/annual-review.

TheAnnualReportoftheDelegatesoftheUniversityPresssetsouthowOxfordUniversityPress2(‘thePress’)hasfurtheredtheUniversity’scharitablepurposesforthepublicbenefit.Thisreportisavailableat:oup.com/about/annualreport.

Strategic Review

Organisational overviewOxfordisacollegiateuniversity,consistingofthecentralUniversityandcolleges.ThecentralUniversityiscomposedofacademicdepartmentsandresearchcentres,administrativedepartments,librariesandmuseums.The38collegesareself-governinginstitutions,whicharerelatedtothecentralUniversityinafederalsystem.Thesecolleges(withtheexceptionofKelloggandStCross)arefinanciallyindependentandfalloutsideofthescopeofthisreport.


Strategic prioritiesThefollowingtwooverarchingprioritieshavebeenidentifiedfordevelopmentovertheperiodoftheStrategicPlan.TheseprioritiesspantheUniversity’scorestrategiesandopenupthepotentialfornewandenhancedactivityonthepartofstaffandstudents,departmentsandcolleges.

Priority 1: Global reach

n TodeveloptheUniversity’spositionasaglobalforumforintellectualengagement,throughtheproactivecommunicationofideasgeneratedatOxfordandthroughopennesstonewideasgeneratedelsewhere.

Priority 2: Networking, communication, and interdisciplinarity

n TobuildonOxford’smultipledisciplinarystrengthsandenablecollaborationsinnewanddevelopingareas.

Core strategies

ResearchThescaleoftheUniversity’sresearchactivityissubstantial:justover1,800academics,5,000researchstafftogetherwith5,900postgraduateresearchstudentsareinvolved,collaboratingwithotheruniversitiesandresearchorganisations,healthcareproviders(especiallytheOxfordUniversityHospitalsNHSFoundationTrust),businesses,communitygroups,charities,andgovernmentagencies.Accordingtothe2014ResearchExcellenceFramework,theofficialUK-wideassessmentofalluniversityresearch,theUniversityhasthelargestvolumeofworld-leadingresearchinthecountry.Thepublicbenefitsfromthisresearchincludenotonlyadvancingfundamentalknowledgebutalsocontributingtobetterpublicpolicy,improvedhealthoutcomes,economicprosperity,socialcohesion,internationaldevelopment,communityidentity,thearts,cultureandthequalityoflife.

ThisenvironmentsupportsworkwithintheUniversitytowardsthethreeresearchcommitmentsintheStrategicPlan:

n Tomaintainoriginality,significanceandrigourinresearchwithinaframeworkofthehigheststandardsofinfrastructure,training,andintegrity.

n Toempowerthecreativeautonomyofindividualstoaddressfundamentalquestionsofrealsignificanceandappliedquestionswithpotentialtochangetheworld.

n Tomaintainanddevelopresources,andinvestinsubjectareasoflong-termworth.

MuchoftheUniversity’sresearchactivityisfundedby

competitivelywonresearchgrantsawardedbythirdparties(includingtheUKResearchCouncils,UKcharitiesandtheEuropeanCommission)aswellasfundingfrombusinessandotherorganisations.Therearecurrently4,582activeresearchawardsworth£2.8bn.Inaddition,theHigherEducationFundingCouncilforEngland(‘HEFCE’)providesinvaluablesupportthroughQuality-RelatedblockgrantfundingandtheHigherEducationInnovationFund.

Research highlights for 2016–17

n Anewhealthbigdatacentrewasopenedwitha£20mgiftfromtheLiKaShingFoundation.Thecentrebringstogetherresearchersfromrelatedteamstoanalysebiomedicaldatafromhundredsofthousandsofpeopleworldwide,speedingupbothourunderstandingofdiseasesandthedevelopmentofnewtreatmentsforconditionsincludingcancer,Alzheimer’sandanumberofinfectiousdiseases.

n ThecreationoftheRosalindFranklinInstitutewitha£100minvestmentfromthegovernment.Thisnewnationalresearchcentreisdesignedtodriveadvancesinhealthandlifesciencesthroughthedevelopmentofphysicalscienceandengineeringinnovation.OxfordledtheproposaldevelopedbyaconsortiumofsevenUKHEIsandindustrypartners.

n Selenium,anewsoftwaresystemformakingregularcarsintodriverlessvehicles,developedbytheOxfordRoboticsInstituteandtheOxfordspinoutOxbotica,waspartofafirstsetofpublictrialsinLondonandMiltonKeynes.

n Amajorfour-yearprojectwaslaunched,fundedbytheArtsandHumanitiesResearchCouncil,toinvestigatethelinkbetweenmodernlanguagesandcreativity.Theprojectisrespondingtothedeclineoftheroleofmodernlanguagesinschoolsandsociety.

n MajornewMedicalSciencesresearchawardsincludedPsychiatry-£7.1m,PrimaryHealthCareSciences-£21.3m,RadiationOncology-£6.7mandtheWeatherallInstituteofMolecularMedicine-£6.3m.

n ResearchersattheDepartmentofEducationledaprojectdevelopingmobileapplicationsdesignedtoadvancethetrainingandsupervisionofcommunityhealthworkersinKenya.

TheUniversityisgratefultoitssponsorsandpartnersfortheresourcestobeabletoundertaketheseandmanyotherprojects.FurtherinformationontherangeofimpactsthatUniversityresearchhasontheworldofpolicy,health,businessandcultureisavailableinaseriesofcasestudiesandfilmsat:www.ox.ac.uk/research/research-impact.

2InaccordancewiththeUniversity’sRegulations,theseFinancialStatementsdonotconsolidatetheaccountsofthePress,althoughextractsfromtheseparateauditedaccountsofthePress’TradingOperationsandPropertyandReserveFundfortheyearended31March2017aresetoutonpages73-78.TherestofthisOperatingandFinancialReviewdoesnotincludethePressunlessexpresslystated.


TheresearcheffortisunderpinnedbythestatusoftheUniversityasaleaderintheinternationalresearchagendaacrossthesciences,thesocialsciences,andthehumanities.ThebenefittotheUniversity–andtothecommunitywhichitserves–isdependentonitsglobalstatus,itsabilitytoseekfundsfrombodiessuchastheEuropeanUnion,andthemobilityofstaffandstudentsacrosstheworld.CombinedwiththeintroductionofnewbodiessuchasUKResearchandInnovation(UKRI)andResearchEngland,thecurrentclimatepresentschallengestotheUniversity’scapacitytodelivertheresearchcommitmentsintheStrategicPlan.

EducationTheUniversityseekstorecruitthebeststudentsfromtheUKandabroadthroughtransparentandfairadmissionsprocessesbasedonachievementandpotential,atbothundergraduateandgraduatelevel.ThisistosupportthethreeeducationcommitmentsintheStrategicPlan:

n ToensurethatourundergraduateandgraduateadmissionsprocessesidentifystudentswithoutstandingacademicpotentialandtheabilitytobenefitfromanOxfordcoursewhatevertheirbackground.

n ToensurethatthebestOxfordexperienceisthetypicalexperience,forallundergraduateandpostgraduatestudents,andthatOxfordfullyequipsgraduatesforthebestofthediverserangeofopportunitiesforstudyandemploymentavailabletothem.

n ToensurethattheuniquerichnessofthecollegiateUniversity’sacademicenvironmentisbothretainedandrefreshed.

Current student numbers

On1December2016,theUniversityhad23,195registeredfull-time,part-timeandvisitingstudents3.Inaddition,withintheDepartmentforContinuingEducation,therewereapproximately14,500enrolmentsonarangeofmorethan800non-award-bearingcourses.FurtherdetailonstudentnumbersisavailablefromtheStudentStatisticswebpage4.

Undergraduate admissions, outreach and funding

TheUniversityisfullycommittedtowideningaccesstoOxford.Significantoutreachactivity5takesplaceacrossthecollegiateUniversitytoencourageapplications

fromacademicallyablestudentsfromdisadvantagedbackgrounds.Thetotalspendonoutreachofover£6mwellexceedstheOfficeforFairAccess(OFFA)guidelines.Butthechallengeofwideningaccessremainsconsiderable:recentchangesinsecondaryschoolcurriculumandassessmenthavebroughtdisruptiontoteachingandstudentattainmentthatcanbedifficultforschoolsindisadvantagedareastomitigate.ThisplacesagreaterresponsibilityontheUniversitytoensurethatitreachesoutaseffectivelyaspossibletostudentsfromdisadvantagedbackgrounds.TheUniversityisseekingbothtoimprovethecoordinationofoutreachactivity,andtoensurethemosteffectiveuseofresourcesinthisarea.

In2016/17,theUniversityreceived19,938undergraduateapplications(anincreaseof4%onthepreviousyear).62%ofUKapplicantswerefromschoolsinthestatesector,andofoffersmadetoUKapplicants,60%weretoapplicantsfromthestatesectorand58%mettheconditionoftheofferandwereaccepted.7,355applicationswerereceivedfromnon-UK(i.e.EUbeyondtheUKandoverseas)applicants,anincreaseof5.8%on2015/16.

TheUniversity’sUNIQsummerschoolprogramme6brought875youngpeoplefromstateschoolsandcollegestoOxfordin2017forweek-longcourses.Anadditional124studentsattendedourpilotSpringConferenceinAprilfocusingonsubjectawarenessandadmissionsinformation.Alsoin2017apilotsummerschooltargetedat100studentsfromruralandcoastalcommunitieswasruninpartnershipwiththeSuttonTrusttocelebrateits20thAnniversary.ThisyearalsosawanexpansionoftargetedactivitiesforUKstudentsfromunder-representedethnicminoritiesand‘cold-spot’regionsliketheNorthEast,wherestudentsarelesslikelytoconsiderOxford.

Insupportofthewideningaccessagenda,thecollegiateUniversityprovidesfinancialsupportforUKandEUstudentsthroughtheOxfordBursaryandTuitionFeeReductionSchemes7.In2016/17,theUniversityprovidedthelowest-incomeUKstudentswithfinancialsupportofupto£11,000perstudentperyear.In2016/17,£6.2minbursariesandscholarshipswasdistributedtoaround2,300undergraduatestudentsandafurther£2.6mintuitionfeereductionswasallocatedtoover860undergraduatestudents.MoredetailontheactivitiesofferedbytheUniversityareavailableatwww.ox.ac.uk/admissions/undergraduate/visiting-and-outreach/outreach-events.

3Excludingthoseundertakingnon-award-bearingcoursesthroughtheDepartmentforContinuingEducation.4Availableathttps://www.ox.ac.uk/about/facts-and-figures/student-numbers5Furtherinformationontheseinitiatives,whichincludeopendays,eventsforstudentsandteachersbothinOxfordandelsewhereandsummerschoolsis

availableat:www.ox.ac.uk/admissions/undergraduate/open-days-outreach6Aresidentialaccessprogrammeforhigh-performingstateschoolstudentsfromschoolsandareaswithlittleornohistoryofsuccessfulapplicationtoOxford.7Theseschemes,targetedatstudentsfromhouseholdswhereincomeisbelowacertainlevel,provideassistancewithlivingcostsatOxfordand,forstudents

whostartedtheircourseonorafter2012,reducetheamountoftuitionfeeloantheyneedtoaccessfromtheStudentLoansCompany,thusreducingtheiroveralldebtongraduation.Furtherinformationisavailableat:www.ox.ac.uk/students/fees-funding/ug-funding/oxford-support


In2016/17,thecollegiateUniversitywillhavespentalmost50%of‘additionalfeeincome’8onaccessmeasures.Basedoncurrentstudentprofiles,aroundoneinfourUKundergraduatestudentsatOxfordwillreceiveabursary(thosewithhouseholdincomesbelow£42,875).

Graduate admissions and funding

TheUniversityhasasignificantinternationalgraduatestudentpopulation.EUgraduatestudentsmakeupalargeproportionofnon-UKstudentsandmakeaveryimportantcontributionbothtothequalityofstudentexperience,andtotheUniversity’sresearchcapacityandperformance.TheoutcomeofthecurrentBrexitnegotiationshasmajorimplicationsfortheUniversity’sabilitytocontinuetobeabletoattractthebestgraduatestudentsfromtheEU.TheUniversityisconsideringverycarefullytheimplicationsofanychangesinthecurrentimmigrationandfeestatusofEUstudentsforitstuitionfeeandfinancialsupportstrategy.

For2016/17entry,applicationsforgraduatestudyroseby5.5%comparedwith2015/16entry.ApplicationsfromtheUKincreasedby2.0%,thosefromtheEUbeyondtheUKby8.6%,andthosefromnon-EUcountriesby6.0%.Applicationsfor2017/18entryareupby5%ataround26,3009.

In2016/17,some£18.5mwasawardedinscholarships,supportingmorethan950graduatestudents.FurtherinformationaboutgraduatescholarshipsavailableatOxfordcanbefoundat:www.ox.ac.uk/admissions/graduate/fees-and-funding/graduate-scholarships.

ThroughtheOxfordGraduateScholarshipMatchedFund,whichoffersdonorstothecollegiateUniversitytheopportunitytomatchtheirgiftwithUniversityfunds,theUniversityhascontinuedtoincreasethefundingopportunitiesavailabletograduatestudents.Philanthropicdonationswhichwillcompletethis£200mendowmentarenowbeingfinalised.During2016/17,over240graduatestudentsweresupportedbythesescholarships.

Supporting student success

In2016/17theStudentCounsellingServicesawapproximately10%ofthestudentbody,offering7,674individualcounsellingappointments,withmoststudentsbeingseenforonetothreesessions.Alongsidethis,theserviceranover300workshopsandgroupsontopicssuchassocialanxietyandassertiveness,overcomingprocrastination,insomnia,panic,relaxation,andexamanxiety.Theservicehasalsofocussedonprovidingwelfaretrainingforstaffincollegesanddepartments.

Thepercentageofthestudentpopulationcontactingthe

StudentCounsellingServicehasbeenincreasingatanaverageof1.1%overthepastfiveyears.Theserviceiscommittedtomonitoringwaitingtimesandofferingfullassessmenttoeveryclient.Moreindividualcollegesarerequestingcollege-basedcounsellorswhichincreasesprovisionbutpresentssomelogisticalchallenges.

In2016/17approximately15%ofthestudentpopulationwasregisteredwiththeDAS.Ofthese,thelargestproportion(29%)disclosedaSpecificLearningDifficulty(SpLD)and25%disclosedamentalhealthdifficulty.ContinualchangestotheDisabledStudent’sAllowance(DSA)hasledtoadegreeofuncertaintyaboutgovernmentsupportfordisabledstudentsandsubstantialincreasesinadministrativeoperatingburden;thisremainsakeychallengefortheforthcomingyearandbeyond.

Governmentfundinghasbeenwithdrawnforcertaintypesofsupportalready,anditislikelythatfundingforMentoringandSpLDTuitionwillalsocease,andtheUniversitywillbeexpectedtocoverthecosts.SubstantialchangestothewaythattheDASdeliversitsserviceswillbenecessary,andworkbeganondefininganewvisionthisyear.Additionalfundinghasrecentlybeenallocatedtosupportstudentswithmentalhealthdisabilities.

Equipping students for future study and employment

TheUniversityseekstoprovideanexcellenteducationforallitsstudentsandtohelpequipthemwiththeskillsandknowledgetosucceedinfuturestudyoremployment.Thischallengehasgrownasglobalcompetitionforstudyplacesandjobshasincreased.TheUniversitywillcontinuetoofferawiderangeofopportunitiesforworkexperience.Itwillalsolookatways,whilepreservingthebestofitshighlyprizededucationalmodel,toenhanceemployability,todevelopmoreinterdisciplinarycourses,embeddingopportunitiesforcollaborationandenterpriseinthecurriculumandassessment,andexploitingnewtechnologyinlearningandteaching.

In2016/17,theprogrammesengagedover2,000undergraduateandpostgraduatestudentsandincluded:

n aninitialassessment,completedbyover97%ofundergraduateandpostgraduatestudents,ontheircareer‘frameofmind’andtheindustrysectorsofinterest.Thesedatawereusedforhighlytargetedandpersonalisedcareerscommunications;

n over400fundedresearchandprofessionalinternationalplacementsinmorethan40countries,maintainingthesamenumberofopportunitiesasthepreviousyeardespitethelossofsubstantialHEFCEfunding;

8ArisingfromtheagreementwithOFFAthattheUniversitymaychargeUKandEUundergraduatesthemaximumpermissiblefeeof£9,000p.a.“Additionalfeeincome”isthedifferencebetweenthefeechargedandthebasicleveloftuitionfeeuptowhichanaccessagreementisnotrequired;formoststudentsthisis£6,000.

9Asat8September2017,comparedtotheequivalentpointinthecyclelastyear.


n thenewLaidlawProgrammeinResearchandLeadershipfor18undergraduateswhodesignedtheirownrigorousresearchprogrammesforthesummer,halfofwhichwereoverseas;

n over360micro-internshipsforstudentstodevelopawiderangeofemployabilityskillswhileworkingonadefinedprojectofvaluetoanorganisationinOxfordshire;

n over200studentstakingpartin“InsightInto...”programmes,offeringworkexperienceandlearningopportunitiesinteaching,medicine,academia,pharmaceuticals,andbusiness;

n theStudentConsultancy,withover450studentsrunningapproximately100voluntaryconsultancyprojectsforlocalorganisations;

n over50femalestudentsatundergraduateandMaster’slevelsreceivingtrainingthroughtheSpringboardprogrammetoenhancetheiracademiccareerandoveralllifeskills;

n over25femalestudentsatMaster’sandDPhillevelsparticipatingintheIgniteCareerConfidenceprogramme;

n 85%ofundergraduatefinalistsengagingwiththeUniversity’sCareersService;and

n over700one-to-onesessions(viaSkype)betweenstudentsandalumniallovertheworld,makingatotalofmorethan2,250ofthesesessionsoverthelastthreeyears.

Lookingforward,thereisuncertaintyinrecruitment,byCityfirmsinparticular,withtherunuptoBrexit.ThecontinuinglackofclarityontherightsofinternationalstudentstostayintheUKtoworkaftergraduation,andtheplansbysomemajorfirmstorelocate,willhaveaneffectin2017/18onrecruitmentlevelsforthefinancialsector.

Widening engagementItisacorepartoftheUniversityofOxford’smissiontoshareitsteaching,researchandcollectionsaswidelyaspossibleandtoinformandinspirecommunities.IntheStrategicPlanthisisexpressedascommitting:

n ToensurethattheuniquerichnessofthecollegiateUniversity’sacademicenvironmentisbothretainedandrefreshed.

n Tosharethefruitsofresearchaswidelyaspossible.

Tosupportthefulfilmentofthesecommitments,Universityresearcherssharetheirworkandcontributetopublicdiscussioninahostofways:festivals;books

andjournals;thenewsmedia;theweb;socialmediaandiTunesU10;OxfordSparks11;andtheOxfordUniversityResearchArchive12.Examplesofthisinclude:

n in2016,ProfessorAdrianMoorepresentedaten-partseriesonBBCRadio4exploringthehistoryofphilosophicalthoughtoninfinity,featuringresearchbyanumberofotherOxfordUniversityacademics;and

n theTrustedSourceknowledgeexchangepartnershipwiththeNationalTrust,whichaimstoenhancethevisitorexperiencebycreatingaknowledgebankofconcise,engagingandaccessibleguidesabouthistory,cultureandthenaturalenvironment,writtenbyOxfordacademicsandNationalTrustspecialists.Theseguidesareavailableonlineandareusedinstaffandvolunteerinductiontraining,visitornotesandguidebooks.

TheUniversityofOxfordistheleadingUKinstitutionformedicalresearchandmakesamajorcontributiontoimprovingqualityoflifethroughitsresearch-ledengagementinhealthcare.TheUniversityworkswithinstitutionsaroundtheglobetoinvestigatesomeoftheleadingcausesofdiseaseanddeath,andtodevelophealthtrainingandinfrastructure13.In2017,theUniversitylaunchedtwonewMaster’sdegreesinEvidence-BasedHealthCareaspartofitscontinuingprofessionaldevelopmentprogrammetoenablehealthcareprofessionalsworldwidetobasetheirclinicaldecisionsonvalid,reliableandrelevantevidence.

Thelong-termoutcomesofourmedicalresearchincludeanincreasedqualityoflifeforthepatientswhobenefitfromthisnewknowledgeandastimulationoffurtheractivityinthewiderhealthcaresectorintheUK.TheseimpactshavebeenestimatedbyBiGGAREconomicstocontributeanadditional£1.8bntotheUKeconomyandhavebeeninstrumentalinsupportingthelifesciencesclusterintheSouthEastofEngland14.

AlsocoretotheUniversity’sgoalsisraisingtheaspirationsofchildrenandyoungpeopleanddemonstratingthevalueofresearchtothelocalcommunity.GoGirl,acollaborationbetweenOxford’sDepartmentofEducationandOxfordshireCountyCouncil,aimedtoinspiredisadvantagedyoungwomeninOxfordtopursuefurthereducationanddevelopskillsrelevanttotheknowledgeeconomy.Theprogrammeledtoincreasedself-esteemaswellasmotivationtoenterfurthereducation,andaplantoexpandtoothercitiesisnowbeingdeveloped.

Workingwithaward-winningcharityin2scienceUK,theMedicalSciencesandMathematical,PhysicalandLifeSciencesDivisionsprovidedplacementstolocalschoolchildrentoworkalongsidescientists,aswellasadviceforsuccessfullydevelopingacareerinthesciencesandmedicine.Alsoin2017,workwithActionTransport

10www.ox.ac.uk/itunes-u11www.oxfordsparks.ox.ac.uk12http://ora.ox.ac.uk13www.medsci.ox.ac.uk/research14www.ox.ac.uk/economicimpact


TheatreinprimaryschoolsinBlackbirdLeys,BanburyandEllesmerePortledtothedevelopmentofanewchildren’sopera.Vehicleschartsthehistoryoftransportationinawaythatlinksdirectlywiththecurriculum,anditwillgoonatourofvenuesandschoolsaroundtheUK.TheSchoolofGeographyandtheEnvironmentjoinedwithHertfordCollegeandTheQueen’sCollegetohostaweek-longresidentialcourseforyear7-13pupilsfromKensingtonAldridgeAcademy,whoseschoolsitewasseverelyaffectedbytheGrenfellTowerfire.

AsoneofthelargestprovidersofcontinuingeducationintheUK,Oxford’sDepartmentforContinuingEducationplaysanimportantroleinsharingthebenefitsofOxford’steachingwithawideaudience.Withnearly20,000annualenrolments,itoffersover1,000courseseachyear,includingover90onlineanddistancelearningaccreditedcourses,aswellasliveandonlineopendays.

TheUniversityalsooffershundredsofpubliclectureseachyear,withsomepublishedonlineforaglobalaudience.Majoreventsin2016/17includedtheRomaneslecturebyBaronessScotlandQContheCommonwealthofNations;andtheongoingWomenofAchievementseriesfeaturingBaronessAmosandworld-renownedconductorMarinAlsop.

Sharing the University’s collections

ThetensofmillionsofobjectsintheUniversity’scollectionsprovidearesourceofinternationalimportanceforscholarsandthepublic.TheUniversity’sgardens,librariesandmuseumsofferextensiveprogrammesofpublicevents,includingtalks,toursandfamily-friendlyactivities.EarlierthisyeartheMindgrowingcampaignwaslaunched,amajorprogrammetoencouragepeopletoexplorethemanywondersofOxford’scollections,withaparticularfocusonencouragingaccessbylocalfamilies15.InFebruary2017,across-collectionstrail,OutinOxford,waslaunchedtocelebratediversityandLGBTQ+HistoryMonth.TheSensingCultureprojecthasseenthecommunityoutreachteamworkwiththeRNIBtodevelopnewtoolsandservicestosupportblindandpartiallysightedpeopletoengagewiththecollections.

Thegardens,librariesandmuseumshostawiderangeofexhibitionseachyear.In2016/17,highlightsincluded‘PowerandProtection’attheAshmolean,thefirstmajorexhibitiontoexplorethesupernaturalinIslamicart;‘BackfromtheDead’attheMuseumoftheHistoryofScience,celebratingthe75thanniversaryofthefirsthumantrialsofpenicillin,conductedinOxford;‘IdentitywithoutBorders’atthePittRivers,co-curatedbyrefugeestosharestoriesfromtheirhomecountries;and‘Raphael:thedrawings’featuringoriginalresearchfromtheAshmoleanandtheUniversityofKent.

Thecollectionsalsoworkcloselywiththeacademicdivisionstogiveinsightsintothelatestresearchandscholarship.TheBrainDiariesexhibitionattheMuseumofNaturalHistorywasdevelopedinpartnershipwithOxfordNeuroscience.Itchartsthefascinatingchangesthattakeplaceinthebrainwitheachnewchapteroflifeandfeaturesspecimensfromthemuseum’scollections.ThehugelysuccessfulSuperScienceSaturdayeventsattheMuseumofNaturalHistoryandlate-nightLiveFridaysattheAshmoleanMuseumcontinued,includingScienceBehindtheHeadlines,LinguaManiaproducedwiththeCreativeMultilingualismprogramme,andFRIGHTFridaydevelopedwithTheOxfordResearchCentreintheHumanities,whichwasalsothefinaleforthenational2016BeingHumanFestival.

Involvement with the local community

TheUniversityisanimportantregionalcontributor,adding£2.3bnayeartotheOxfordshireeconomyandsupporting33,700jobsinthecounty.WeareoneofthelargestemployersinOxfordshire,employing12,721staffonafulltimeequivalentbasis16,andstaffandstudentscontributeover£310mayear17.

StudentssupportthelocalcommunitydirectlywithtwosuccessfulanduniqueprogrammesrunbytheCareersService.IntheStudentConsultancy,studentsworkinteamstoaddressastrategicissueorbusinessproblemforacommunityorganisationorlocalbusiness.Sincetheprogrammebeganin2009,over3,000studentshaveparticipatedinmorethan400projects,includingatModernArtOxford,PegasusTheatre,theCityCouncilandLowCarbonHeadington.TheMicro-Internshipprogramme,launchedin2015,enablesover300studentsayeartoworkfortwotofivedaysonprojectsofvaluetolocalorganisations18.

Ourmedicalsciencesexpertisedoesnotjustoperatenationallyandgloballybutalsohasasignificantlocalimpact.MostpatientsinOxfordshirecomeintocontactwithaUniversitymedic:manyareonjointNHSappointments,andmanyNHSconsultantsandGPsholdhonorarypositionsintheUniversityandcontributetoteaching.

TheOxfordforOxfordprojectearnedparticularpraisefromlocalteachersforinspiringchildrentoapplytouniversity,manyofwhommaynototherwisehavedoneso.ThecommunitygrantsschemecontinuestosupportahugerangeoflocalactivitiesacrossOxfordshire,fromagardeningprojectforpeoplelivingwithdisabilitytosupportfortheHinducommunity’sSummerMela.Smallgrantssupportedyouthtraining,youngpeople’soperaandphotographyprojectsaswellasthemoreestablishedeventsofOxfordOpenDoors,theChristmasLightsandtheCowleyRoadCarnival19.

15www.mindgrowing.org16www.admin.ox.ac.uk/personnel/hrinfoteam/staffing-data/staffingfigures/figures17www.ox.ac.uk/economicimpact18http://www.careers.ox.ac.uk19www.ox.ac.uk/local-community/small-community-grants


TheUniversitymakesamajorcontributiontotheculturalandsportinglifeofthecityandregion.TheFacultyofMusicandOxfordPhilomusicaofferabusyprogrammeofconcerts,workshopsandeducationalactivity,whiletheUniversityisamajorfinancialsupporteroftheOxfordPlayhouse.EachSeptember,thecollegiateUniversityopenstothepublicduringtheOxfordOpenDoorsweekend,thelargestheritageopendayeventinthecountry.Academicshaveteamedupwithlocaltheatrecompaniestobringresearchtolife,inconjunctionwithChippingNortonTheatreCompanyandanEastOxfordprimaryschoolamongothers.

ThemajorityoftheUniversity’ssportsfacilitiesareopentothecommunity,withparticularlyhighuptakeinmembershipsoftheUniversityswimmingpoolandgymatIffleyRoad.TheUniversityhoststhreestateprimaryschoolsforswimminglessonswithnohirecost,amountingtomorethan120hoursofpooltimeeachyear.OurSportsClubsinvolveover130membersofthecommunityininstructorandcoachpositions.TheUniversityParkshostcricketclubsthroughoutthesummer,theonlyfirst-classcricketvenueintheworldthatofferscompletelyfreeentrytowatch.TheannualRaceforLifehalf-marathonandTownandGown10kruntakeplaceacrossmanyareasofthecityincludingtheUniversityParksandtheUniversityandcollegesportsgrounds.

Dissemination through Oxford University Press

AsadepartmentoftheUniversity,OxfordUniversityPressfurtherstheUniversity’sobjectiveofexcellenceinresearch,scholarship,andeducationthroughpublishingworldwide.ItextendstheUniversity’sreach,thankstoitsnetworkofofficesacrossover50countries.

ThePresspublishesthousandsofnewtitleseachyearinitscoremarketsofresearch,educationandthelearningofEnglish.Ithelpstochangepeople’slivesthrougheducation,publishingprimaryandsecondaryschooleducationtexts,Englishlanguageteaching(ELT)resources,children’sfiction,universitytextbooks,scholarlymonographsandjournals,anddictionaries.

In2016/17,thePresspublished15,234titlesinbothdigitalandprint.Thesetitleswerepublishedin102languages,andsoldin190countriesacrosstheworld.

Someofitsflagshipproductsfromlastyearinclude:

n Aweh!–anewAfricanlanguagesreadingscheme.

n TheNewOxfordShakespeare–anewconsiderationofShakespeare’sworks.

n TheOxfordTestofEnglish–aUniversity-certifiedprogramme,launchedinSpain.

n The500thVeryShortIntroductiontitle.Ninemillioncopiesofthisserieshavebeensoldinthepast21years.

ThePresscontinuestomakethemostoftheopportunitiesopenedupthroughpartnerships,technologyandemergingeconomies.Forexample,itsjointventurewithAQAEducation,OxfordInternationalAQAExaminations,hasintroducedanewgenerationofinternationalGCSEs,ASandALevels,andthePresshaspartneredwithEmergeEducationtohelpdeveloprelationshipswitheducationstart-ups.Additionally,lastyearthePresscollaboratedwithIndoMobilandTeachCasttobringdigitallearningtopartsofIndonesiawhereconnectivityispoor.TeachCastdeliversOxfordcoursessuchasHeadwayandLet’sGo,usingtrucksasmobileclassrooms.Therearecurrentlytwotrucksinoperation,buttheeventualaimisfor500truckstoreach150learnerseverysingleday.

ThePressalsocontinuestomaintainitscommitmenttosupportingteacherstodriveeducationalexcellence.Lastyear,over350,000teachersattendeditsprofessionaldevelopmentevents,andstaffinthePress’sDubaiofficeranatrainingwebinarfor120teachersinSyria.

WhiletheactivitiesofthePressareintegraltotheUniversity’sobjectives,undertheUniversity’sStatutesandRegulationsthefinancialstatementsofthePressarenotincludedintheUniversity’sfinancialstatementsandtheDelegacyofthePressisresponsibleforpreparingseparateauditedaccountsofthePressforsubmissiontoCouncil.

ExtractsfromtheaccountsofthePressfortheyearended31March2017areincludedforinformationonpages73-78,butdonotformpartofthesefinancialstatements.

PersonnelStaffarethekeyresourceoftheUniversity.ThenumberofstaffemployedattheendofthefinancialyearbytheUniversitywas14,400,representing51%ofexpenditure.Thethree‘peoplecommitments’intheStrategicPlanhighlighttheUniversity’sprovisionofasafe,welcomingandinclusiveworkplacethatenableseveryonetodevelopanddotheirbestworkattheUniversity.

Ourfirstcommitmentistorecruitandretainhighcalibrestafffromacrosstheworld.Todeliverthiswe:

n Enabledepartmentstoattractandrecruitthebestresearchandteachingstafffromacrosstheworldbyensuringthatweofferexcellentrewardsandpensions,awelcomingandinclusiveculture;supportforvisaapplicationsandforthetransitionofnewlyrecruitedstafftoOxford.

n Provideopportunitiesforaspiringacademicswhomeetourhighstandardsofresearch,teachingandcitizenshiptobeawardedthehighly-prizedtitleof‘professor’atOxfordviaarigorousannualprocess.


n AreindialoguewiththeapproximatelyoneinfiveofourstaffwhoarefromotherEU/EEAmemberstatestoensurethattheyfullyunderstandtheiroptionsduringtheBrexitnegotiationperiod.

n Offerhighlevelsofsupportwithcompliancewithlegalandotheraspectsofemploymentincludingarobustprocesswithhighlevelsofgovernanceandmonitoringofequalpayissuesforagreeingperformance-relatedpayandrecruitmentandretentionpaymentsforoutstandingindividuals.InadditionweareafullyaccreditedLivingWageEmployerwhichensuresthatourmostjuniorstaffandcontractorsarepaidatthisnationallyrecognisedlevel.

n Havegrownourapprenticeshipschemetonowemployover100youngpeople.TheschemerecruitsandtrainsapprenticesintoavarietyofappropriateexistingvacanciesacrosstheUniversity.TheintroductionofanewbespokeFMapprenticescheme,taughtin-house,hashadasuccessfulfirstyearwith11FacilitiesManagementapprentices.

n Providesignificantsupportforstaffwhohavefamilyandcaringresponsibilitiesvia:extensiveprovisionofworkplacenurseries;anon-lineandtelephonesupportservice–myFamilyCare;extensiveparentalleave.

n Havegrownanin-houseTemporaryStaffingServicetoensurehigh-qualitystaffareprovidedtodepartmentsacrosstheUniversitysavingcommercialagencyfees.

n ArelookingatwaystodevelopthesupplyofaffordablehousinginOxfordandsurroundingareas.Recruitmentofstaff,particularlyinmorejuniorroles,andresearchstudentsishamperedbythestandardandhighcostofaccommodationinthecity.Theabilitytolivewithineasytravelingdistanceisimportantforthesegroupsasaccesstoresearchfacilitiesisoftenrequiredoutofnormalworkinghoursaspartofthenatureofthework.Thosewithcaringresponsibilitiescanbedisproportionatelyaffected.

Oursecondcommitmentistoworktowardsanincreasinglydiversestaffingprofile.Todeliverthiswe:

n Workacrossalllegally‘protectedgroups’,meetingourpublicsectorequalitydutiesandinstitutionalcommitments,includingtheprovisionofinformationandguidanceondemonstrating‘dueregard’indecision-makingandprovisionoftraining(forexample,implicitbiasandraceawareness).

n ContinuetoworkwithdepartmentstoachieveAthenaSWANawardstoprovideexternalevidenceofourhigh-qualityworkongenderequality.TheUniversityhasthelargestnumberofbronzeandsilverawardsformedicalandsciencedepartmentsofanyUKUniversity.

n HaveextendedparticipationintheAthenaSWANChartertotheSocialSciencesandHumanitiesdepartments.

n Supportandworkwithstaffdiversitynetworkswhichassisttheinstitutioninrealisingitscommitmentstoequalityanddiversity.

n HavelaunchedAlliesandLGBT+RoleModelprogrammestobuildonourworkasStonewallDiversityChampionstopromoteLGBT+equalitywithintheUniversity.

n Continuetosupportdisabledstaff,includingmaximisingexternalfundingthroughtheAccesstoWorkschemefor‘reasonableadjustments’.

n HaveundertakenpreparatoryworktosupportaninstitutionalBronzeRaceEqualityChartersubmissiontobemadein2017/18.

n UsetheVice-Chancellor’sDiversityFundtosupporttheimplementationofanumberofprojects,includingaprojecttodiversifyportraitureintheUniversity’spublicspacesandtheReturningCarers’Fund,whichmakesgrantstoresearchersandacademicstosupporttheirreturntoresearchfollowingaperiodofleaveforcaringpurposes.

n HaveconsultedwidelywithstaffandheldanumberofworkplaceballotsonthefutureoftheUniversity’sretirementpolicy,whichisaimedatsustaininginter-generationalfairnessandpromotinggreaterdiversity.Asaresultthepolicyhasbeenretained,butinanadaptedform.

OurthirdcommitmentistodevelopallstafftoenhancetheireffectivenessandcontributiontotheUniversity’sgoals.Todeliverthiswe:

n Promotetheuseofpersonaldevelopmentreviewstoidentifytraininganddevelopmentneeds.

n Deliveramixofface-to-face,online,andself-directedlearningviatheOxfordLearningInstitute’sProfessionalDevelopmentGroup.

n HavesecuredaccreditationthroughtheEUHRExcellenceinResearchSchemeinrecognitionofourtargetedcareerandpersonaldevelopmentsupportforresearchstaff.

n Provideprogrammesofeducationaldevelopmentleadingtonationally-accreditedteachingqualifications.Theseprogrammesrangefromentry-levelprovisionaimedatresearchersinterestedinpursuingacademiccareerstoaseniorprogrammeineducationalleadership.

n ProvideallstaffwiththeopportunitytoenterourWorkLearnDevelopprogrammeofapprenticeshipsforstaffofallagesandlevelstoprovidedevelopmentopportunitiesandprofessionalqualifications.


Enabling strategies

Finance, capital and value for moneyIntheStrategicPlantheUniversitygavecommitments:

n TogenerateasufficientrecurrentsurplustosustaintheUniversity’sinfrastructure,collectionsandacademicactivities.

n ToallocateunrestrictedincometoreflectthecollegiateUniversity’sstrategicprioritiesandcommitments.

TheUniversityaimstoachieveasurplusofatleast5%ofitsoperatingincometoensuresufficientfundstoinvestinthemaintenance,renewalandreplacementofitsbuildingsandinfrastructure.TheUniversity’sambitiousprogrammeofcapitalinvestmentisnecessarytoensurethatlibraries,seminarrooms,laboratories,ITsystemsandresearchequipmentareofsufficientqualitytosupportworldclassacademicendeavour,thusensuringeffectivestaffrecruitmentandretention,thedisseminationofknowledge,andthedevelopmentofnewwaysofworkingandstudyingforstaffandstudents.

Inrecentyears,duetoacombinationofdownwardspressureonincomeandupwardspressureoncosts(particularlypaycosts,largelyreflectingthenationalcostoflivingawardandincreasesinNationalInsuranceandpensioncontributions)theUniversityhasnotachieveda5%surplus.Inresponsetothisithasadoptedanumberofmeasureswhichhavesucceededinaddressingthedeclineinitsoperatingsurplus.In2016/17itachievedasurplusof3.4%andisbudgetingforasurplusof4.2%in2017/18.Furtherimprovementsarefactoredintotheplanningprocess.Thisestablishesanoverallframeworkfordeliveringtherequiredfinancialoutcomewhichisthenreflectedinthefinancialtargetsthattheconstituentelementsneedtodeliver.Theseincludeheadcountcontrolsonnon-academicstaffnumbers,newUniversity-widepurchasingarrangements,anewendowmentmatchingschemetounderpinexistingexpenditure,andmechanismstoreviewandimprovetheUniversity’soveralloverheadrecoveryonresearchgrants.

WorkisnowtakingplacetobuildupontheValueforMoneyobjectivesreportedtoHEFCEin2016,whichincludedenergyconsumption,procurementactivities(e.g.categorymanagementandoptimisedlistsofsuppliers),sharedteachingplacesandbenchmarkingadministrativeservices.

Anactivitysurveywasundertakenin2016tounderstandthelevelsofsupportforteachingandresearchactivitiescarriedoutbyadministrativeandprofessionalstaffacrosstheUniversity.Itcapturedactivitiesoverthecourseof2015/16,andwillberepeatedtocapture2017/18activities.ThesurveywasalsocarriedoutbyanumberofRussellGroupuniversities,whichprovidedopportunitiestoexplorehowOxford’sapproachescomparetocertain

peerinstitutions.Forthefirsttimethereisanoveralllevelofunderstandingofwheresupportservicesoccuracrosstheacademicdepartments,divisionsandcentralUniversityservices.Informedbythis,thefirststageofaprogrammeisduetobelaunchedwhichisintendedtomakeadministrativeprocessessimpler,moreeffective,andinsomeinstancesreduceoverallriskstotheUniversity.Whilstthefulldetailshaveyettobedefined,itisanticipatedthataspectsoffinancialprocesses,procurementforestates,andITnetworkingwillbeinthefirsttrancheofprojects.

EstateTheUniversity’scommitmentinthisareaistoinvestinestatewherethiswillfacilitateneworimprovedwaysofworking,increasedefficiencies,improvedopportunitiesforinterdisciplinaryworking,orthedecommissioningortransformationofinappropriatespaces.TheUniversitycontinuestodoso.

Overview of the estate

InvestmentinnewbuildingsandinenhancingthequalityoftheUniversity’sexistingestateishelpingtoimprovethecondition,functionalsuitabilityandenvironmentalperformanceofthefunctionalestate.Thedemandfornewandmorefunctionalspacecontinues.In2016/17,theUniversity’sfunctionalestategrewby0.6%,toapproximately659,000sqm.Thecapitalprojectsthatarecurrentlyunderconstructionwillprovideanadditional34,976sqmofspacewithintheUniversity’sfunctionalestateatacostofaround£175m.AsignificantchallengewastheclosureoftheTinbergenbuilding,housingtwoacademicdepartments,atshortnoticeduetothediscoveryofasbestos.TheUniversitycontinuestoworkonimprovingthelivingandworkingenvironmentforitsstaffandstudents.

Improving the working environment and operation of the Estate

n TheBigDataInstitutebuildingwascompletedontheOldRoadCampusinMarch2017,andthenewSharedDataCentreintheOxfordMolecularPathologyInstitutebuildingwascompletedinAugust2017.

n WorkcontinuesontheBeecroftBuildingforPhysicswhichisdueforcompletioninMarch2018;thebuildingispresentlyundergoingfinalfit-out.

n AleasewassignedforspaceinanewbuildingatMansfieldCollegetoaccommodatethenewInstituteofHumanRights.

n AfteranalysingthevariousoptionsforthefutureoftheTinbergenbuildingfollowingitsclosureinFebruary2017,aUniversity-widesteeringgrouphasunanimouslyrecommendedthatitbereplacedwithanewpurpose-builtstructurethatwillhousethedepartmentsofZoologyandExperimentalPsychology.


n Numerousprojectsareunderwaytoprovideshort-andmedium-termdecantspaceforthosewhovacatedtheTinbergenbuilding;thisincludessitingmodularbuildingsonthesportsfieldoftheUniversityClubandintheRadcliffeObservatoryQuarter.

n WorkontheTinbergenextensioncontinuesdespitetheclosureoftherestofthebuildingandthiswillprovideanewworld-classteachingfacilityfortheDepartmentofChemistry,dueforcompletioninApril2018.

n WorkacrosstheUniversityledtothedevelopmentofanewapproachtocapitalplanningandacapitalplanningtoolwhichwillenhancethefinancialsustainabilityandoptimisationofourcapitallandandbuildinginvestments.

n Abusinessplanandfinancialmodelwasprepared,whichwillenabletheWythamWoodsChalettobecomeaworld-classresearchfacilitywithintheWoods.

n AnewlightingschemewasinstalledintheRadcliffeCamera,whichwashighlycommendedattheLuxawards.

n Repairsandmaintenance,upgradingofplant,improvedrecordingandrecordmanagement,anewcateringcontractandrevisedsecurityprocedureshaveallledtoimprovedrunningoftheestate.Suchinitiativeshavecontributedtoimprovedresilience,asaferworkingenvironment,andreducedcosts,bothfinancialandenvironmental.

Improving the living environment

n WorkcontinuestoprovideanewbuildingontheOldRoadCampus,dueforcompletioninJuly2018.ThechildcareprovisionattheJackStrawsLanenurserywassecuredthroughpurchasingthepremisespreviouslyleased.

n CompletionofanewstudenthubatKelloggCollege(whichachievedtheUniversity’sfirstPassivhauscertification),constructionofnewstudentaccommodationforStCross,andrefurbishmentofgraduatestudentroomshaveledtoimprovedstudentexperienceandanincreasednumberofunitslet.Togetherwiththecorporateresidentialportfolio,incomeof6%morethanbudgetwasgenerated.

n ThenextphaseofworktoredeveloptheIffleyRoadSportsComplexisdueforoverallcompletioninFebruary2018.

n ThepurchaseoftheUniversityRugbyClubgroundtosecurethefacilityforthelongtermhasbeencompleted.

n LandscapingforvariouscapitalprojectswascompletedincludingtheLiKaShingCentreforHealthInformationandDiscovery,StCrossCollege,WestQuad,KelloggCollegeHub,andTheBodleianBookStorageFacilityatSwindon.

n Environmentaltransportoptionswereextendedthroughtheadditionofmorebikehirestationsandelectricbikes

availableinOxford.Azeroemissionselectrictruck,theGoupilG5,wasacquired–oneofthefirstintheUK.

n AthirdroutefortheScienceTransitShuttlewasintroduced,connectingOxfordcitycentrewithWythamWoodsandtheJRHospitalsite,inadditiontoHarwellandOldRoadCampus.TheShuttlehasmademorethan25,000passengerjourneyssinceitslaunchandcurrentlycarriesaround900passengersperweek.

Planning and working with the community

n TheUniversityworkedwiththeCityCouncilandthecollegestoproduceaDevelopmentFrameworkPlanforOxfordtohelpinformlong-termdevelopmentandplanningstrategyforthecityforthenext5,10,15and20years.ThiswasfollowedbyaformalresponsetotheCityCouncil’sPreferredOptionsinAugust2017.

n InordertosupportCherwellDistrictCouncil’sobligationtocontributetothehousingneedsofOxford,theUniversityensuredthatlandatBegbrokeScienceParkiscentraltodeliveringhomesforstaffandgraduates.

n AmasterplanforOsneyMeadwasdevelopedwhichcouldhelpdeliveranadditional600unitsofaccommodation,expandeddepartmentalactivity,andupto140,000sqmofnewresearchspacebothacademicandcommercial,providingexpansionspaceforOxfordoverthenext20years.

n Fundingof£6.2mfromtheLocalGrowthFundwillallowimprovementstoinfrastructureincludingflooddefencesandaccessinthewestofOxford.

n EnsuringthatthedesignprocessforcapitalprojectswillutilisethePassivhausmethodologyandtools.Passivhausisatthecuttingedgeoflowenergydesignandhasprovenitcandelivercomfortablebuildingsthatperformasdesigned.Thisapproachwillbringotherbenefitsincludinggreaterprotectionfromrisesinenergyprices,reductionsinbuildingcomplexityandmaintenancecosts,andmorecomfortablestructuresforstafftoworkin.

n Ourcarbonemissionsarenowlowerthanthosefrom2005(thebaselineforourcarbonreductiontarget)forthefirsttime.

n Achievedthe‘greentourism’accreditation,theworld’slargestsustainablecertificationprogramme,attheExaminationSchools,theSheldonianTheatre,WilliamOslerHouseandStLuke’schapel–thefirstvenuesinOxfordtoachievethis.

n Preparationswereputinplacetocelebratethe75thanniversaryoftheUniversityowningWythamWoods;theWoodshavebecomeoneofthemostresearchedareasoflandintheworld.

n StafffromWythamWoodsattendedtheGlastonburyFestivalwithahands-onscienceexhibitionasapartofpublicengagementwithsciencefor18–30yearolds.


Information technology (IT) infrastructure

TheUniversity’sStrategicPlancommitmentforITistoinvestininformationtechnologiesthatenhancethecapacityofOxford’sacademiccommunitiestocollaboratewitheachotherandwithglobalpartners,andthatsupportthestudentexperience.Areviewof

theITStrategicPlanbytheITCommitteeandotherstakeholdersprovidedarefreshandreprioritisationoftheinitiatives.EachoftheareasoftheStrategicPlanareoverseenbyanITBoard20.ThetotalannualoperationalexpenditureforthecentralITdepartmentis£21.6mandthisprovidesapproximately40%ofthedeliveryofITservicesacrosstheUniversity,therestoftheeffortbeingwithindepartmentsanddivisionaloffices.

Central IT expenditure on areas of focus (in £’m)

Research £1.49m

Education £2.58m

Widening engagement £0.66m

Enterprise systems £3.15m

Infrastructure £7.88m

Cybersecurity £0.64m

Excellence and user services £1.01m

Other £4.19m

20www.it.ox.ac.uk/do/governance-and-policies

Research

TheUniversityResearchArchive(ORA)andtheinstitutionalrepositoryfordata,(ORA-Data)havebeenmigratedtoamorestableinfrastructureallowingustobeginamuch-neededupgradeoftheunderpinningapplication.Theaccompanyinginformationforresearchersondatamanagement,securityandprivacyissueshavealsoprogressed.TheseservicesunderpintheopenaccessstrategyoftheUniversityandarecriticaltothenextResearchExcellenceFramework.

Therehavebeenupdatestoinfrastructuretosupportresearchcomputingandtheservicestrategytosupportdatastorageisalsoprogressing.Datastorageisacorerequirementforresearchersanditcomesinmanysizesandshapes–smalltolarge,from‘syncandshare’,back-up,throughtoarchiving.

Education

ThisacademicyearhasseentheprogressionoftheUniversityDigitalEducationStrategyandanumberofinitiativeswithinit.Anewlecturecaptureservicehasbeenrolledout.TheUniversityhashaditsfirstMassiveOnlineOpenCourse(MOOC).TheexistingVirtualLearningEnvironment,WebLearn,wasupgradedandafullreviewoftheexistingserviceisunderway.Weanticipateimplementinganimprovedserviceinthenextacademicyear.

Thestudentinformationsystem,SITS,hadanumberofenhancementsthatarecreatingamoreuser-friendlyserviceandreducingthesupporteffortneeded.NewSITSfeaturesincludedonlineexamtimetablesforstudents,andthecalculationoffeesforuseinadmissionsofferletters.The‘SITSforColleges’projectwascompletedwith14collegesparticipatingandseveralmoreinterestedinadoptingtheservice.Thisisastepforwardintermsofhavingajoined-upstudentinformationsystem.


Widening engagement

ThisyearalsosawanewfocusontheDigitalStrategyoftheGardens,Libraries,andMuseums.Thekeyfocusareahasbeenonmakingthedigitalestatemoreresilient,andprogressingthefunctionalityofcross-searchingofcollections.Anumberofmobileapplicationshavebeenbuilttosupportvisitorengagementwiththecollections.

Anewwebplatformhasbeendevelopedresultinginacentralservicetosupportthewebsite,theMosaicservice.Itallowsfaculties,departments,colleges,andotherunitstoquicklycreatewebsites.ThisnewserviceaimsnotonlytodriveefficienciesinwebsiteprovisionbutalsotoreducethesecurityrisksrelatedtoUniversity-widewebservers.Thenewplatformis“inthecloud”with24/7supportensuringthatanyvulnerabilitieswillbedealtwithinatimelyfashion.

Enterprise administrative systems

ContinuedenhancementshavehappenedthroughouttheyearincreasingthefunctionalityoftheCoreHRsystem,thedevelopmentsystemtosupportfundraising,thefinancesystem(OracleR12),andothercorporatesystems.

Infrastructure: networking, communications & data centres

Intheareaofnetworking,communicationsanddatacentres,therehavebeenanumberofdevelopmentsduringtheyear.Newintegratedcommunications,replacingthetelephonesystem,arebeingrolledout;thisiskeytodeliveringcommunicationsservicesforthosemovedtoalternativelocationsaftertheclosureoftheTinbergenbuilding.AnewshareddatacentrewillimproveresiliencefortheUniversity’sinformationassetsbyprovidingasecondsite.

DevelopmentofArchitecturePrinciples21andtheiradoptioninthedevelopmentofnew,orupgradingofexisting,systemswillsupportprovisionofeffectiveandefficientservices.Aspartofthearchitecturestrategyacultureofapplication,dataandtechnicalarchitectureisnowbeingdevelopedwithinthecentralITdepartment.Inparallelanumberofdatagovernanceprojectsarebeingundertakentosupportthearchitecture,permittingimprovedintegrationbetweencoreenterpriseapplications.

Cybersecurity

InformationsecuritycontinuestobehighpriorityfortheUniversity.OnlinetrainingmoduleshavebeendevelopedandtakenupacrosstheUniversity,andassistancehasbeengiventohigh-riskdepartmentsonprotectionandenhancedsecuritymeasures.Atthesametimerecoveryplans,incaseofamajorcompromiseorotherdisaster,havebeendevelopedandtestedwithcoreenterpriseapplications.

Alumni relations and developmentTheUniversityhascommittedtorealisetheOxfordThinkingCampaigntargettosupporttheacademicstrategiesoftheUniversityandcolleges.

In2008,theUniversitylaunchedOxfordThinking:TheCampaignfortheUniversityofOxford,withthegoalofraisingaminimumof£1.25bntotransformtheUniversityandthecollegesformanygenerationstocome.Thismilestonewasmetinearly2012andanewgoalof£3bnwasannouncedinOctober2012.TheOxfordThinkingCampaigntotalcurrentlystandsat£2.66bn22.AllofthegiftsreceivedforOxfordThinkingcontributetothecollegiateUniversity’sagreedpriorities–supportingstudents,academicpostsandprogrammes,andinvestingincapitalinfrastructureandfacilitieswithinthecolleges,academicdivisionsanddepartments,gardens,libraries,museumsandcollections,aswellassportsandotheractivities.Somehighlightsofgiftsmadein2016/17whichsupporttheseprioritiesincludegiftsof:

n £7mfromtheUehiroFoundationonEthicsandEducationforcontinuedsupportofachairinappliedethicsandresearchinpracticalethicsintheHumanitiesDivision.

n £2mforaChairofStrokeMedicineintheMedicalSciencesDivision.

n £1.2minsupportofresearchattheOxfordUniversityCentreforAstrophysicalSurveysfromtheHintzeFamilyCharitableFoundation.

n Over£2mfortheEndangeredArchaeologyProject,basedintheDepartmentofArchaeology,fromtheArcadiaFund.

n Over£12mfromananonymousgroupofdonorstoendowrowingatOxford.Thissupportcoversboththemen’sandwomen’steamsaswellasboththelightweightteams.

n £9mfromAndréHoffmannfortheWeidenfeld–HoffmannScholarshipsandLeadershipProgramme.Matchedwith£6mofUniversityfunding,thishasenabled15taughtMaster’sScholarshipstobeendowedforstudentsfromemergingandtransitionaleconomies.

n £1.35mhasenabledtheAshmoleanMuseumtosecuretheWatlingtonHoardforthenation.ThiswascomprisedofsupportfromtheHeritageLotteryFundamongstothers,aswellasgiftsfromover800membersofthepublic.

FurtherinformationabouttheCampaigncanbefoundat:www.campaign.ox.ac.uk

21www.it.ox.ac.uk/strategy/it-architecture


Campaign statistics 2016-17

n Amountraisedin2016/17–£192m22

n Amountraisedtodate–£2.66bn22

The role of the Development Office in meeting challenges

BelowareafewexamplesofhowtheDevelopmentOfficeissupportingtheUniversityandthecollegesviatheCampaignpriorities.

n EnablingthebrighteststudentstostudyatOxford,regardlessoftheirbackground.

AcorepriorityfortheOxfordThinkingCampaignistosecurephilanthropicfundingforstudentsupport.Thiscoversscholarshipsandbursariesforundergraduates,scholarshipsforgraduatestudentsaswellassupportforoutreachandwideningparticipationactivitiessuchasUNIQ.ThesedonationshelptheUniversitytobuildamoreextensiveandsustainableplatformofopportunitiestoensurethebrighteststudentsareabletocometoOxford,regardlessoftheirbackground.

n Attractingandretainingtheworld’sbestacademicsbysecuringendowmentsforpriorityposts.

InorderforOxfordtomaintainitspositionasaworld-leadinguniversity,recruitingthebestacademictalentfromacrosstheglobeisessential.Tosecurethefutureofarangeofcoreposts,fundraisingforendowmentsisasignificantobjective.

TheOxfordEndowmentChallengeFundwasestablishedtoleveragesupportfortheendowmentofprioritypostsacrossallacademicdisciplinesbyprovidingmatchedfundingfromtheUniversityonaratioof2:1(forevery£2givenbyadonor,theUniversitywillmatchitwith£1fromtheFund).TheendowmentofpostsisthereforeanimportantfocusofactivityfortheDevelopmentOffice.

n Provisionofhigh-qualityinfrastructureandaworkingenvironmentthatsupportstheworkoftheUniversity.

Inordertoconductworld-leadingteachingandresearch,thebuildingsandfabricoftheUniversitymustbeofanappropriatestandard.Theworkingenvironmentneedstooffertheappropriatefacilitiesandequipment,whilstalsoprovidingtheopportunityforengagementandinteraction.

Securingfundingfornewbuildingsortoredevelopexistingbuildingsisachallengeanddonationsplayavitalroleinenablingtheseambitiousprojectstomoveforward.TherearemanyexamplesacrosstheUniversityandthecollegeswheredonorsupporthasmadetheseprojectspossible.RecentexamplesincludetheBeecroftBuildingintheDepartmentofPhysics,theAcerNethercottSportsHallandtheLiKaShingCentreforHealthInformationandDiscovery.

Other organisations 7%

Corporations 6%

Trusts and foundations 56%

Individuals31%

Academic posts 11%

Buildings 7%

Academic programmes

35%

Student support

33%

Other 14%

Source of Income

Application of funds

22Includingdonationsreceiveddirectlybythecollegesupto31January2017only.


BrexitTheUK’sresearch-intensiveuniversitieshavebenefitedgreatlyfromtheUK’smembershipoftheEuropeanUnion,andtheUK’sresearchbasehasbeentransformedoverthelast20yearsorso.Since2007/08,theproportionofOxford’sresearchfundingfromtheEUhasmorethandoubled,andsofarintheHorizon2020researchfundingprogramme,OxfordhasreceivedmoreEUfundingthananyotherEuropeanuniversity,almost€300m.Oxford’sshareof£78mfromEUsourcesin2016/17madeup14%ofitsoverallresearchincome.

Apartfromthemoney,ithasbeentheabilitytoparticipateinresearchnetworksacrosstheEU,toinfluencethestrategicdirectionofthoseprogrammes,andtohelptodevelopcriticalmassandcross-fertilisationofideas,whichhasbeenthemostimportantelementofbelongingtoaresearchcommunitythatspreadsacross28countries.NotonlyhasEuropeanUnionfundinghelpedOxfordtoparticipatewithotherEuropeancountries,italsohelpsustocollaboratewithnon-EUcountries.DuringtheFP7researchprogramme,OxfordcollaboratedwiththeUSA(562projects),Canada(209)andAustralia(203)asaresultofEUfunding.

Similarly,therecruitmentofinternationalstudentshasbeenarealsuccessstoryfortheUK,addinggreatlytodiversityandtherichnessoftheeducationalexperienceforallstudents.Ofthemorethan400,000internationalstudentsstudyingintheUKlastyear,over125,000studentswerefromelsewhereintheEU.InternationalandEuropeanstudentscometotheUKasthemostattractivedestinationworld-wideforstudyincoursesthataretaughtinEnglish.ThehighqualityofUKuniversityeducationhasalsoresultedin“export”earningsof£11bneveryyearand“off-campus”spendingof£5bnayear.

Oxfordisoneofthemostinternationaluniversitiesintheworld.Some60%ofourgraduatestudentsarefromcountriesotherthantheUK,andover50%ofouracademicstaffandresearchers.Around16%ofourstudentbodyiscomposedofstudentsfromelsewhereintheEU.

Oxfordisadiverseandinclusiveinstitution,andhasalwayslookedinternationallyforourpartnershipsinresearch,andinstudentandstaffexchange.MembershipoftheEUhasmadestudentexchangethroughErasmusmorestraightforward;ithashelpedusattracttopinternationalfacultyandresearchersthroughtheEuropeanResearchCouncilgrantsandthroughMarieCurieawards.

Thereare,ofcourse,manyuncertaintiesinvolvedinthewakeoftheBrexitdecision.HighereducationisjustonepartofthenegotiationsbetweentheUKandtheEU.Oxfordwantstoensurethatfreedomofmovementispreservedaslargelyaspossible.InternationalstudentsareimportantfortheUKeconomy,butinOxford’scase,recruitingandretainingthebestinternationalfacultyandresearchersandtheadmissionofthebeststudentsfromaroundtheworldareinterlinkedandvitalfortheUniversity’sacademicendeavours.

However,weareacutelyawareoftheriskthatthepost-Brexitsettlementwillnotbeasbeneficialaswhatwehavenow.SuccessfulnegotiationsfortheuniversitysectormaymeanthatresearchersinUKinstitutionswillcontinuetohaveaccesstoEUresearchprogrammesafterBrexit,anditistobehopedthattheUKgovernmentanditsfundingagencieswillintroducemechanismsthatwillenableUKuniversitiestocontinuetheirvaluableinternationalcollaborationsbothwithintheEUandoutsidetheEU.


AssetoutintheStrategicPlan,theUniversityiscommittedto:

n generatingasufficientrecurrentsurplustosustaintheUniversity’sinfrastructure,collectionsandacademicactivities;and

n allocatingunrestrictedincometoreflectthecollegiateUniversity’sstrategicprioritiesandcommitments.

The2016/17resultsshowthattheUniversity’sfinancialpositionremainsstrongbutatatimeofrisingcostsanddecliningpublicinvestment,carefulcontrolofcostsandimprovingefficienciesaswellasidentifyingnewrevenuestreamsandobtaininggreaterrecoveriesonresearchoverheadsremainkeypriorities.MajorchallengesincludethelackofaffordablehousinginOxfordwhichmakesitincreasinglydifficulttorecruitandretainthebeststaffandstudents,therisksarisingfromBrexit-relateduncertainty,theriskofincreasedpensioncostsandtheriskofchangestogovernmentpolicyimpactingstudentfees.

Basis of accountingTheaccountsareproducedunderFinancialReportingStandard102.ThefinancialstatementsdonotincludethetransactionsandbalancesofthePress,whichisadepartmentoftheUniversityratherthanaseparatelegalentity.UndertheUniversity’sStatutesandRegulationsthefinancialstatementsofthePressshallnotbeincludedintheUniversityfinancialstatementsandtheDelegacyofthePressisresponsibleforpreparingseparateauditedaccountsrelatingtothePressforsubmissiontoCouncil.ExtractsfromtheaccountsofthePressfortheyearended31March2017areincludedforinformationatpages73-78butdonotformpartofthesefinancialstatements.WherefundsaretransferredfromtheReservesofthePressthesearereflectedasincomeinthefinancialstatementsoftheUniversity.

On30October2017CouncilapprovedtheinclusionofthefinancialstatementsofthePressin2017/18.

CouncilhasreviewedtheUniversity’sfive-yearfinancialforecastandhasareasonableexpectationthattheUniversityhasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.Forthisreasonitcontinuestoadoptthegoingconcernbasisinpreparingtheaccounts.

Reported Financial Surplus

2016/17£’m

2015/16£’m

Income 1,400.4 1,321.8Expenditure (1,397.0) (1,336.5)Surplus/(loss) on ordinary activities before gains & tax

3.4 (14.7)

Investment gains 218.1 188.0Share of deficit on Joint Venture

(0.2) -

Taxation (1.6) (0.4)Total Comprehensive Income

219.7 172.9

Totalcomprehensiveincomefor2016/17amountedto£219.7mandthecomparablefigurein2015/16was£172.9m.Theincreaseintotalcomprehensiveincomeisexplainedasfollows:

n Aspartofanefforttocontrolcostgrowthandimproveoperationalefficiencies,theUniversityhasimplementedacaponthenumberofUniversityfunded,non-academicstaff.AsaconsequencethenumberofUniversity-fundednon-academicstaffremainedlargelyunchangedwhilsttherevenuegeneratingactivitiessupportedbythesestaffcontinuedtogrow.

n Thelevelofcostrecoveryoncertaincategoriesofexternallyfundedresearchgrantsimprovedin2016/17comparedto2015/16.ThisrepresentsanincreaseinthecontributionbyresearchfunderstomeetingthecoststhattheUniversityincursinthesupportofresearch,suchaspremisesandITinfrastructure.

n In2016/17,theUniversitymadegainsontransactionsinforeigncurrenciestotalling£7.3mcomparedtoalossof£7.3min2015/16.ThisisprimarilyduetothefallinthevalueofsterlingfollowingthedecisiontoleavetheEuropeanUnioninJune2016asresearchgrantspaidinUSdollarshaveincreasedinvalue.

n Newendowmentsof£43.7mwerereceivedforfundingkeypostsandscholarshipsandthecomparablefigurein2015/16was£37.9m.

Financial Review


n InFebruary2017,theUniversityannouncedtheclosureoftheTinbergenbuildingduetothepresenceofasbestosinpartsofthebuilding.Duetotheageofthebuildingandthedifficultyofremovingtheasbestos,auniversity-widesteeringgrouphasunanimouslyrecommendedthedemolitionandreplacementoftheTinbergenbuildingwithanewfacility.Aprovisionforthecostofthedemolitionoftheexistingbuildingandotherrelatedcosts(£20.5m)hasbeenincludedwithinexpenditurein2016/17.Theremainingnetbookvalueofthebuildingof£6.8mhasbeenwrittenoff.

n Theliabilityforthecontributionspayabletofundpensiondeficitsreducedby£6.5min2016/17whereasitincreasedby£11.0min2015/16.

n Gainsinthemarketvalueofinvestmentswere£218.1mcomparedwith£188.0min2015/16.ThevalueofinvestedassetsisinherentlyvolatileandwhilsttheUniversityhasbenefittedfrommarketvaluegainsin2016/17,thisfigureislikelytofluctuateyearonyear.TheperformanceoftheUniversity’sinvestedassetsismeasuredonalong-termbasisagainstatargetrateofreturn.OverthepreviousfiveyearstheannualisedreturnoftheOxfordEndowmentFundis11.5%andfortheOxfordCapitalFundis6.1%,exceedingtheUniversity’stargetrateofreturn.Thereturnfor2016/17was13.4%fortheOxfordEndowmentFundand3.8%fortheOxfordCapitalFund.TheUniversityalsobenefittedfromstrongmarketvaluegainsinitsspinoutportfolio.

IncomeComparedwiththepreviousyear,incometotheUniversityincreasedby5.9%,from£1,321.8mto£1,400.4m.Themainchangesin2016/17were:

n researchgrantsandcontractscontinuedtobethelargestsourceofincometotheUniversityandincreasedby5.1%to£564.9m(2015/16:£537.4m),mostofwhichwasmatchedbyrelatedexpenditure.The2016/17figureincludesaone-offnetrecoverableamountof£5.3mwithrespecttoadditionalresearchanddevelopmenttaxcreditsforthe2014/15financialyear.Nofurthertaxcreditsofthisnatureareexpectedtoarise;

n academicfeesandsupportgrantsrepresentthesecondlargestsourceofUniversityincomeandtotalled£307.2m,upby4.7%,whichisprincipallyduetoanincreaseinstudentnumbers;

n grantsfromHEFCEwereslightlyhigherthantheprioryearat£194.6m.Themainincreasewasincapitalgrantsof£4.4m.Anincreaseinresearchfundingof£3.6mwasoffsetbyareductionintherecurrentteachinggrantof£4.7mduetothelossoftargetedgovernmentfunding;

n otherincomeof£227.7mincreasedby6.9%asaresultofanumberoffactorsincludinggainsonforeignexchangeandadditionalrevenuefromroyalties,propertyrentalsandnewservicesforstaff;

n donationsandendowmentsreceivedwere£91.6m,upfrom£76.6mandincludeanumberofsignificantnewgifts;

n investmentincomeincreasedfrom£8.8mto£14.4mduetoprofitondisposalofspin-outinvestments,higherincomeintheunderlyingOxfordFundinvestmentsandhigherinterestonhigherbankbalances;and

n investmentgainstotalled£218.1m,upfrom£188.0min2015/16.ThesearemainlyunrealisedandarederivedfromgainsontheOxfordFundsandinvestmentsinspinoutcompanies.

ExpenditureTheUniversity’sexpenditureof£1,397.0mwas4.5%higherthanin2015/16.Themainchangeswere:

n staffcostsexcludingthemovementinpensionprovisiontotalled£714.8m,anincreaseof5%.Theaveragenumberofstaffroseby2.8%andthenationalcostoflivingaward,increasesinbothNationalInsuranceandUniversitySuperannuationSchemepensioncontributionsandpayincrementsforstaffaccountedfora2.2%increase;

n otheroperatingexpenditureincreasedby5.7%.ThecostsassociatedwiththeclosureoftheTinbergenBuildingaccountedfor3.8%andinflationandotherfactorsaccountedfortheremaining1.9%;

n inFebruary2017,theUniversityannouncedtheclosureoftheTinbergenbuildingoccupiedbythedepartmentsofExperimentalPsychologyandZoologyduetothepresenceofasbestosincertainpartsofthebuilding.Aprovisionforthecostsofdemolitionandothercoststosupportstudentsandprovidetemporaryaccommodationof£20.5mhasbeenmadeandchargedtooperatingexpenditure;

n depreciationincreasedfrom£87.1min2015/16to£102.6masaresultofsignificantfixedassetadditionsduringtheyearandincludes£6.8mtowriteofftheremainingnetbookvalueoftheTinbergenbuilding;and

n interestpaymentsfellfrom£12.8mto£9.9mlargelyduetolowerinterestcostsontheOSPSpensionscheme.


Cashflow and financingTheoverallincreaseincashfortheyearwas£72.0mandnetoperatingcashinflowtotalled£46.7m.Whilstlowerthanin2015/16,capitalexpenditureandcapitalgrantsreceivedcontinuetobesignificantastheUniversityprogresseswithitscurrentstrategiccapitalinvestmentprogramme.

Netcashinflowsfromoperatingactivitiesincreasedinlinewiththesurplusbeforeothergains.ThenetcashimpactofinvestmentactivitiesreflectsthetransferofOCFassetstoliquidassets.

2017£’m

2016£’m

Netcashinflowfromoperatingactivities

46.7 35.5

Capitalexpenditure (139.3) (154.3)Capitalgrantsreceived 52.4 63.1Netcashimpactofinvestmentactivities

71.0 (8.7)

Endowmentcashreceived 50.2 53.0Other (9.0) (9.8)Increase/(decrease) in cash

72.0 (21.2)

Asat31July2017,theUniversityhadbankloansoutstandingtotalling£230.3m.Netliquiditydayswere82(2015/16:78).

Net assetsNettotal£3.23bn(2015/16:£3.01bn).Theincreaseinnetassetslargelyrelatestoincreasesinthevalueofinvestments,increasedlevelsofcashandcashequivalentsandexpenditureonfixedassets.

Fixed assetsFixedassetadditionswere£139.3mduringtheyear.TheLiKaShingCentreforHealthInformationandDiscoveryandBegbrokeInnovationAcceleratorwerecompletedandworkcontinuedontheBeecroftBuildingforPhysics,whichisdueforcompletioninMarch2018.

Pension schemesTheUniversityisamemberofthreemulti-employerpensionschemeswhoseassetsandliabilitiesarenothypothecatedtoindividualinstitutions.Twooftheschemes,USSandOSPS,arefundedschemesfacingsubstantialdeficits.TheOSPSactuarialvaluationasat31March2016identifiedafundingdeficitof£133m.Thedeficithasreducedfrom£173mfollowinganumberofchangestobenefitsincludingfrom1April2017achange

inindexationbasedontheaverageofRPIandCPI,from1October2017adefinedcontributionsectionfornewentrants,andfrom1April2018breakingthefinalsalarylinkandincreasingemployeecontributions.Detailsoftheschemesandassociateddeficitsaresetoutinnote33.

TheUSSactuarialvaluationasat31March2017iscurrentlyunderway.TheUSSaccountsfortheyearended31March2017identifiedanestimateddeficitof£12.7bn,upfrom£5.3bn.Theestimatedvaluationisbeforetakingintoaccountchangestobenefitswhichmayoccur.DiscussionsbetweenemployersandUSSareunderwaytofinalisetheactuarialvaluationandtorevisethecurrentbenefitstructure.

The Oxford FundsTheOxfordFundsisaninvestmentvehiclewhichenablesthecollegiateUniversitytopoolassetsheldontrustandinvestthemasone.TheOxfordFundsismanagedbyOxfordUniversityEndowmentManagementLtd(OUem)underinvestmentanddistributionpoliciessetbytheInvestmentCommitteeandCouncil.Therearetwounitisedclassaccounts,theOxfordEndowmentFund(OEF)andtheOxfordCapitalFund(OCF),andtheFundsareopentotheUniversity,thecollegesandcharitabletrustsassociatedwiththeUniversity.At31July2017,therewere30investorsacrossthecollegiateUniversity.TheUniversity’sshareoftheOEFrepresentsthecollectiveendowmentsofapproximately600individualtrusts.

Oxford Endowment FundTheOEFaimstopreserveandgrowthevalueoftheperpetuitycapitalofthecollegiateUniversityofOxford,whileprovidingasustainableincomestream.Itsspecificinvestmentobjectiveistogenerateanaverage5%returnovertheConsumerPriceIndex,withvolatilitynotmorethantheMSCIWorldIndex.TheOEF’sdistributionpolicyistodistribute4.25%oftheaverageofthelast20quarters’netassetvaluesubjecttoacapof10%increaseandafloorofthepreviousyear’sdistribution.ThisensuresthatthedistributionisdirectlylinkedtotheperformanceoftheFundwithoutdepletingthecapitaloriginallyinvested.Thisinvestmentobjectiveislongterm,andnotayearbyyearmeasure.

At31July2017,thenetassetvalueoftheOEFwas£2,484.5mhavingdistributed£82.1mtothecollegiateUniversityforthecalendaryear2016.Managingendowmentcapitalgivesagenuinemulti-yeartimehorizonandinvestmentsaremadefortheverylongterm.Whileshort-termperformanceoverfixedperiodsthereforeprovideslimitedinformationalvalue,theOEFreturned13.4%inthe12monthsto31July2017.OverlongertimeperiodstheOEFhasanannualised(average)returnof12.0%overthreeyears,11.5%overfiveyears


and10.7%overeightyears.TheannualisedvolatilityoftheOEFoverthreeyearsis5.2%.Theseperformancefiguresarenetofallfeesandcosts.

AlthoughtheassetallocationoftheOEFhasevolvedovertime,ithasalwaysbeenheavilyfocusedonriskassets:equities(publicandprivate),creditandproperty.Acrossthese,OUem’sfundamentallong-terminvestmentthemesguideexposuresandpositioning.Forexample,thereissignificantexposuretoinnovationacrossarangeofsectorssuchastechnology,consumerproductsandpharmaceuticalresearchinbothpublicandprivateequity.Thethemeofdomesticgrowthdriversinemergingmarketsappearsinpubliclyquotedcompaniesbutalsoinexcitingnicheprivatestrategies.Increditstrategies,asignificantamountofcapitalisbeingusedtofundgrowthandstructuralchangeinmarketssuchasIndiaandChina.

Despiteanuncertainbackdropofpoliticalandmacrorisks,globalequitymarketshavecontinuedtoenjoyaperiodofpositiveperformance,withlowlevelsofvolatilityandunprecedentedlevelsofcentralbanksupport.OUem’sapproachtoriskmanagementisnottospendsignificantamountsoftimeforecastingpreciseoutcomesofinherentlyunstableevents,buttoensurethattheOEFhastheappropriatebalanceofopportunitiesandprotectionsinarangeofdevelopments.

Equitiescomprise75.0%oftheOEFandhavebeenthemaindriverofreturnsinboththelongandshortterm.Investmentsinprivateequityhavebeguntomakeasignificantimpactand,whileittakesseveralyearstobuildameaningfulprivateequityportfolio,thecaretakeninselectingstrategiesandmanagershaspaidoff.Onatimeweightedreturnbasis,privateequityhasachievedanannualisednetreturnof18.5%overfiveyears.TheseprivateequityinvestmentsarepredominantlyintheUS,UKandChinaandinsectorspecialists,growthequityorspecialsituations.Investmentsinconventional‘buyout’strategiesarelimited.

Publicequityhasanetannualisedreturnof14.0%overthelastfiveyears,andthisgroupisactiveacrossdevelopedandemergingmarkets.AttheendofJuly,74.6%ofpublicequitywasindevelopedmarketsand25.4%inemergingmarkets.Thestrongestperformingpublicequitymanagerhasanannualisedfiveyearreturnof22.1%netproving,ifdonewell,activemanagementaddsconsiderablevalue.

Creditexposurehasevolvedovertimeandwillcontinuetodosoasopportunitiesarise.TodaythereareinvestmentsindirectlendingandcomplexspecialsituationstrategiesintheUS,EuropeandAsia,allofwhichhavearangeofdifferentreturndriverstoequityinvestments.OUemcontinuestobuildaportfolioofUKcommercialandresidentialpropertiestocomplementholdingsinstrategiclandandruralestates.Aspartofthis,attheendof2016,theopportunitywastakentorealisevalueinruralholdingsthroughthesaleoftheNunehamCourtenayEstate.FurtherperformanceinformationcanbefoundinTheReportofOxfordEndowmentFundatwww.ouem.co.uk.

The Oxford Capital FundTheOCFexiststoinvestexpendablecapitaloveramedium-termtimehorizon.Typicallythiscapitalisforbuildingprojectswhichhaveaknownliabilityatafixedpointinthefutureand,accordingly,theOCFseekstooperateatalowerrisktolerancethantheOEF.Itsspecificinvestmentobjectiveistogenerateanaverage1.5%returnovertheConsumerPriceIndexwithanexpectedvolatilityrangeof5-8%.TheOCFdoesnotmakeanannualdistributionasallincomegeneratedisreinvested,anditisdesignedtoallowforsubscriptionsandredemptionsonamonthlybasis.

At31July2017thenetassetvalueoftheOCFwas£482.8m.Forthetwelve-monthperiodto31July2017theOCFreturned3.8%,andithasreturnedanannualised(average)6.5%overthreeyears,6.1%overfiveyears,and6.5%overeightyears.TheannualisedvolatilityoftheOCFoverthreeyearsis4.1%.Theseperformancefiguresarenetofallfeesandcosts.

OutlookNotwithstandingthegeneraluncertaintiesthatexist,theUniversitywillcontinuetoseektomanageitssourcesofrevenueeffectivelyanditscostsefficientlyinordertogeneratethelong-termcash-flowneededtoensurethatOxfordmaintainsitspre-eminentpositionamongsttheworld’sleadinguniversities.


OxfordUniversityisanindependentandself-governinginstitution,consistingoftheUniversityandthecolleges.TheCounciloftheUniversityisresponsiblefortheacademicpolicyandstrategicdirectionoftheUniversity.Thirty-eightcolleges,thoughindependentandself-governing,arerelatedtotheUniversityinafederalsystem.TherearealsosixPermanentPrivateHalls,whichwerefoundedbydifferentChristiandenominations,andstillretaintheirreligiouscharactertoday.Thecolleges(otherthanKelloggCollegeandStCrossCollege)23andthePermanentPrivateHallsarelegallyandfinanciallyseparatefromtheUniversity.TheirfinancialresultsarenotconsolidatedintotheUniversityfinancialstatements.

Charitable statusTheUniversityhascharitablestatusasoneoftheexemptcharitieslistedinSchedule3totheCharitiesAct2011.ItisthereforeexemptfromcertainrequirementsofthatAct,includingtheneedtoregisterwiththeCharityCommission.Since1June2010,HEFCEhasbeen‘principalregulator’forcharitylawpurposesofthoseEnglishuniversitieswhichareexemptcharities.

ThemembersofCouncil,theUniversity’sexecutivebody,arethetrusteesofthecharity.InthatcapacitytheyhavehadregardtotheCharityCommission’sguidanceonpublicbenefitandthesupplementaryguidanceontheadvancementofeducation,inparticular,thekeyprinciplesthattheremustbeanidentifiablebenefitorbenefitsandthatthebenefitmustbetothepublicorasectionorsectionsofthepublic.Whilststudents,bothundergraduateandgraduate,areimmediatebeneficiariesoftheUniversity’scharitableobjectives,thepublicasawholebenefitsconsiderablyfromthecontributionsthattheUniversity’steachingandresearchmaketosocietyandtheeconomy.

AnyprivatebenefitarisingfromcommerciallyfundedresearchandknowledgetransferactivityisincidentaltotheUniversity’sprincipalobjects.TheUniversity’strusteesareawareoftheirobligationsinrespectofthesepublicbenefitprinciplesandensurethattheUniversityhasproceduresandpoliciesinplacetocoverthecreationofintellectualpropertyandthemanagementofconflictsofinterest.

Governance structureThefollowinginformationdescribesthegovernanceandlegalstructureoftheUniversity.ThesegovernancearrangementsareforthemostpartsetoutintheUniversity’sStatutesandRegulations24.

HEFCErequirestheUniversitytoprovideanexplanationoftheongoingdifferencesbetweentheUniversity’sgovernancearrangementsandtheHigherEducationCodeofGovernancepublishedbytheCommitteeofUniversityChairs25.

Congregation

TheUniversityofOxfordisalaycorporationfirstestablishedbycommonlawandlaterformallyincorporatedbystatute.Ithasnofounderandnocharter.ThesovereignbodyoftheUniversityisCongregation,composedofvirtuallyallacademicstaffandcertainresearchstaff,administratorsandlibrarians.Congregationactsasthe‘parliament’oftheUniversityandhasthepowertobindCouncil.IthasresponsibilityforconsideringmajorpolicyissuessubmittedtoitbyCouncilormembersofCongregation;itelectsmemberstocertainUniversitybodies,includingCouncilandtheAuditandScrutinyCommittee;anditapproveschangestotheUniversity’sStatutesandRegulations.

Council

CounciliscomposedofmembersofCongregationelectedbyCongregation,exofficiomembersandlaymembers26.ItmeetsregularlyandischairedbytheVice-Chancellor.SubjecttothepowersofCongregation,CouncilistheexecutivegoverningbodyresponsiblefortheacademicpolicyandstrategicdirectionoftheUniversity,includingitsrelationswithcollegesandexternalrelations,andfortheadministrationoftheUniversity.CouncilisresponsibleforthemanagementoftheUniversity’sfinancesandassets,inaccordancewiththeconditionsofthememorandumofassuranceandaccountabilitybetweenHEFCEandtheUniversity;andforkeepingaccountsandrecordsofallfundsadministeredbyCouncilandforprescribingtheforminwhichinstitutions,departments,boards,committeesanddelegaciesoftheUniversityshallkeeptheiraccounts.

Corporate Governance Statement

23ThesearedepartmentsoftheUniversityand,assuch,theirfinancialresultsareconsolidatedintotheUniversity’sfinancialstatements.24www.admin.ox.ac.uk/statutes25 www.admin.ox.ac.uk/councilsec/governance/governancestructures/theuniversitysgovernancestructure/gov_comp/ comptable26 MembershipofCouncilcanbefoundonpage24.


Councilisalsoresponsiblefordetermininganadequateandeffectivesystemofriskmanagementthatcoversallrisks,includinggovernance,management,quality,reputationalandfinancialrisks,whichfocusesonthemostsignificantrisks,andwhichproducesabalancedportfolioofriskexposure;andfordeterminingthesystemofinternalcontroloperatedbytheUniversityandformonitoringitsadequacyandeffectiveness.

CouncilisrequiredtotakesuchotherstepsasitmayconsidernecessaryfortheefficientandprudentconductoftheUniversity’sfinancialbusiness,includingtakingreasonablestepsto:

n ensurethatthereareappropriatecontrolsinplacetosafeguardpublicandpublicly-accountablefundsandfundsfromothersources,tosafeguardtheassetsoftheUniversityandtopreventanddetectfraudandotherirregularities;

n ensurethatincomehasbeenappliedinaccordancewiththeUniversity’sStatutes,itsmemorandumofassuranceandaccountabilitywithHEFCEanditsfundingagreementwiththeNationalCollegeforTeachingandLeadership;

n securetheeconomic,efficientandeffectivemanagementoftheUniversity’sresourcesandexpenditure;and

n ensurethattheUniversitymeetswiththestandardsoffinancialsustainability,goodmanagementandgoodgovernanceexpectedbyHEFCEandassessedinitsAnnualProviderReview.

Councilisrequiredtopreparefinancialstatements,whichincludetheaccountsrelatingtotheteachingandresearchactivitiesoftheUniversityandtheaccountsoftheUniversity’ssubsidiaryundertakings.Thesegiveatrue

andfairviewoftheassetsandliabilitiesoftheUniversity(otherthanthePress27)anditssubsidiaryundertakingsattheendofthefinancialyear,andoftheirincomeandexpenditurefortheyearunderreview.Inpreparingthefinancialstatements,Councilisrequired:

n toselectsuitableaccountingpoliciesandapplythemconsistently;

n tomakejudgementsandestimatesthatarereasonableandprudent;

n tostatewhetherapplicableaccountingstandardshavebeenfollowed,subjecttoanymaterialdeparturesbeingdisclosedandexplainedinthefinancialstatements;and

n topreparethefinancialstatementsonagoingconcernbasisunlessitisinappropriatetopresumethattheUniversitywillcontinuetooperate.

FromtimetotimeCouncilreviewsitsowneffectivenessandtheinstitution’sstructuresandperformancetoensureitisabletosatisfyitselfthatitisabletodischargeitsexternalaccountability(includingaudit)requirementsbothintheacademicandfinancialspheres.Itsmostrecentself-reviewtookplacein2015/16.Councilapprovedthefindingsandhasimplementedorisintheprocessofimplementingtherecommendations.

InaccordancewiththeModernSlaveryAct2015,CouncilisrequiredtoapprovetheUniversity’sslaveryandhumantraffickingstatementforeachfinancialyear.Thestatementforthisfinancialyearisavailableatwww.admin.ox.ac.uk/councilsec/compliance/modernslavery.

CouncilisresponsibleforthemaintenanceandintegrityofthecorporateandfinancialinformationincludedontheUniversity’swebsite.LegislationintheUKgoverningthepreparationanddisseminationoffinancialstatementsmaydifferfromlegislationinotherjurisdictions.

27Seefootnote2onpage5.ThePresshasitsownfinancialregulationsandprocedures.AnauditorappointedannuallybyCouncilseparatelyauditsthePress’saccounts.


ThemembersofCouncilaretheCharityTrusteesoftheUniversity.MembershipofCouncilfrom1August2016to27November2017wasasfollows:

Membership of Council

Position Name DateEx officio membersVice-Chancellor ProfessorLouiseRichardson ThroughoutChairmanofConferenceofColleges ProfessorPaulMadden,ProvostofQueen’s

ProfessorSirRickTrainor,RectorofExeterTo30September2017

From1October2017HeadoftheMedicalSciencesDivision ProfessorAlastairBuchan

ProfessorChristopherKennard

ProfessorGavinScreaton

To19January2017From20January2017to

30September2017From1October2017

HeadoftheMathematical,PhysicalandLifeSciencesDivision

ProfessorDonalBradley Throughout

HeadoftheHumanitiesDivision ProfessorChristopherWickhamProfessorKarenO’Brien

To22September2016From23September2016

HeadoftheSocialSciencesDivision ProfessorRogerGoodmanProfessorNeilMacFarlane

To30September2017From1October2017

SeniorProctor DrMarkWhittowDrEdBispham

To14March2017From15March2017

JuniorProctor DrElizabethGemmillDrDanHicks


Assessor LukePitcherProfessorStefanEnchelmaier


Elected by the Conference of CollegesProfessorHenryWoudhuysen,

RectorofLincolnTheRtHonDameElishAngiolini,PrincipalofStHugh’s

To15September2016

From16September2016Elected by CongregationOneoffourmembersofCongregationelectedbyCongregationfrommembersofthefacultiesinthedivisionsofMathematical,PhysicalandLifeSciencesandofMedicalSciences

ProfessorLionelTarassenkoProfessorTimCoulson

ProfessorMatthewFreemanProfessorHelenMcShane

ProfessorRichardHobbs


ThroughoutThroughoutThroughout

OneoffourmembersofCongregationelectedbyCongregationfrommembersofthefacultiesinthedivisionsofHumanitiesandofSocialSciences

ProfessorTeresaMorganProfessorGeraldineJohnson

ProfessorNeilMacFarlaneProfessorHelenaHamerow

DrKateBlackmonDrIanWatson



ThroughoutThroughout

OneofthreemembersofCongregation,notnecessarilybeingmembersofanydivisionandnotinanycasebeingnominatedinadivisionalcapacity,whoshallbeelectedbyCongregation

ProfessorAnneTrefethenProfessorSirRickTrainor,RectorofExeter

MrRichardOvendenProfessorJonathanMichie,PresidentofKellogg

ProfessorSirRoryCollins

ThroughoutTo30September2017

From1October2017To30September2016

From1October2016External members

MsJayneAlmondSirCrispinDavis

DameKateBarkerLordDrayson

SirDavidNorgroveMrCharlesHarman

To30June2017To31December2016

From1July2017ThroughoutThroughout

From16November2017Co-opted members

ProfessorSallyMapstoneProfessorIanWalmsley

To31August2016From1September2016


Committees of Council

Councilisadvisedbyarangeofcommittees,includingninemaincommitteesthatreportdirectlytoitoncorebusiness.FollowingCouncil’sself-reviewin2015/16,anumberofchangeshavebeenmadetotheremitsofthosecommittees,increasingscopeforthemtomakedecisionswithoutreferencetoCouncilandgivingthemresponsibilityforimplementingandmonitoringtheaspectsoftheUniversity’sStrategicPlanwhichrelatetotheirremit.Otherresponsibilitiesoftheninecommitteesareasfollows:

n theEducation Committeeisresponsiblefordefiningandkeepingunderreviewtheeducationalphilosophy,policy,andstandardsoftheUniversity;andfortheoversightofactivitiesrelatingtoteaching,learningandassessment;andstudent-relatedequalitiesmatters;

n theGeneral Purposes CommitteeadvisesCouncilonpolicyinrespectofissuesoractivitieswhichareUniversity-wide,anddonotfallwhollywithintheremitoftheothercommitteesofCouncil.ItsremitincludesresponsibilityforkeepingunderreviewproceduresforidentifyingandmanagingrisksacrosstheUniversity’sactivities;

n thePersonnel Committeeisresponsibleforthedevelopmentandreviewofemploymentpolicies,forstaffrelationsandforallpersonnelandstaff-relatedequalitymatters;

n thePlanning and Resource Allocation CommitteeisresponsibleforsettingtheUniversity’sannualbudget,andresourceallocation,includingmakingrecommendationstoCouncilonrecurrentandcapitalplanningandbudgeting,forecasts,resourceallocationandotherfinancialarrangements,andmonitoringperformanceagainstplans;

n theResearch and Innovation CommitteeisresponsibleforUniversitypolicyandplanningissuesrelatingtoresearch,knowledgeexchange,innovation,commercialandsocialentrepreneurshipandpublicengagementwithresearch;andfacilitatesthepreparationofexternalreviewsoftheUniversity’sresearchandco-ordinatesthegatheringofdataforsuchreviews;

n the Audit and Scrutiny Committee reviewstheadequacyandeffectivenessoftheUniversity’sarrangementsforriskmanagement,internalcontrol,valueformoney,dataqualityandgovernance,considerstheannualfinancialstatementsand,underCouncil,overseestheUniversity’sarrangementstodetectandpreventfraudandirregularity.TheCommittee’sremitincludesresponsibilityforthe

appointmentoftheUniversity’sexternalauditors(subjecttoCouncil’sapproval)anditsinternalauditserviceandforagreeingthenatureandscopeoftheirworkandtheirfees.During2016/17,theAuditandScrutinyCommitteehadnoformalresponsibilityforassuranceoverthePress’sactivities.However,theCommitteehasbeeninformedperiodicallyaboutmatterswithinthePress,andmembersoftheFinanceandAuditCommitteesofthePresshaveattendedmeetingsoftheAuditandScrutinyCommitteeduringtheyear;

n theFinance Committeeisresponsible,underCouncil,fortheconsiderationofthefinancialresourcesavailabletotheUniversity,andforproposing,forapprovalbyCouncil,theoverallincomeandexpenditurebudget,theoverallcapitalexpenditurebudgetandthefive-yearfinancialstrategyfortheUniversity.TheCommitteeisalsoresponsibleforthereviewof,andprovisionofadvicetoCouncilon,theUniversity’sannualfinancialstatementsandannualaccountsoftheDelegatesofthePress,andprovidingadvicetoCouncilontheneedsoftheUniversity(asestablishedbyitsplans)inorderthatCouncilcantaketheseviewsintoaccountwhenestablishingcapitalinvestmentpolicy;

n theInvestment Committeeisresponsible,underCouncil,forthemanagementoftheUniversity’sinvestmentportfolio;and

n theCommittee to Review the Salaries of Senior University OfficersisresponsibleformakingrecommendationstoCouncilonthesalariesonappointmentoftheVice-Chancellor,theRegistrar,andtheDirectorofFinance,fordeterminingthesalariesonappointmentofthePro-Vice-ChancellorswithspecialresponsibilityfordesignatedfunctionsandoftheHeadsofDivisionsandforreviewingthesalariesofthoseoffice-holdersthereafter.

The Press

TheDelegacyofthePress,whichincludesseventeenmembersofCongregationappointedbyCouncil,isresponsiblefortheaffairsofthePress.TheDelegatesmeetfortnightlyduringtermtime,toreceivereportsonthemanagementofthePressfromtheChiefExecutiveandFinanceCommittee,andtoreviewandauthorisepublications.TheFinanceCommitteeofthePressisestablishedbytheDelegatestodirectandmanagethebusiness,assetsandfinancesofthePress,underthegeneralauthorityoftheDelegates.TheDelegacyofthePresssubmitsthePress’sAnnualAccountsandareportonthoseaccountstoCouncil.


Councilisresponsiblefordetermininganadequateandeffectivesystemofriskmanagementthatcoversallrisks,includinggovernance,management,quality,reputationalandfinancialrisks,whichfocusesonthemostsignificantrisks,andwhichproducesabalancedportfolioofriskexposure.RiskmanagementisasignificantpartoftheUniversity’ssystemofinternalcontrol.Councilrecognisesthatriskmanagementcannoteliminateallrisk,particularlyduringanuncertaintimeforthesector.

TheUniversity’sobjectivesforriskmanagementaretoalignriskmanagementwiththeUniversity’sobjectives(assetoutintheStrategicPlanandelsewhere);toappraiseandmanagerisksandopportunitiesinasystematic,structuredandtimelymanner,inaccordancewithbestpractice;tostrengthendecision-making,prioritisationandplanning;toachievetheappropriatebalancebetweenstabilityandinnovation;andtoassignaccountabilityandresponsibilityforriskwithintheUniversity.

TheUniversityhasimplementedaRiskManagementPolicy,whichsetsoutthearrangementsithasadoptedtoenableittomanageitsrisks.Thesearrangementscanbesummarisedasfollows:

n TheGeneralPurposesCommitteeisresponsibleforreviewingtheproceduresforidentifyingandmanaginggovernance,management,quality,reputationalandfinancialrisksacrosstheUniversity.

n DivisionalanddepartmentalriskreportingandriskmanagementisembeddedintheUniversity’sfive-yearplanningprocess.

n TheGeneralPurposesCommitteeconsiderstheStrategicRiskRegisterandassociatedriskmanagementreports;italsoreceivesriskregistersandreportsonriskmanagementfromthemajorcommitteesofCouncilandreportstoCouncilonriskmanagement.

n CouncilreviewstheUniversity’sStrategicRiskRegister,andconsidersreportsonmanagementofthekeystrategicrisks.

n TheAuditandScrutinyCommitteereceivesreportsfromtheinternalauditorsonriskmanagement,andprovidesassurancetoCouncilontheadequacyandeffectivenessoftheUniversity’sarrangementsforriskmanagement.

Councilconfirmsthatasystemofriskmanagementhasbeeninplaceandoperatingasintendedduringtheyearended31July2017,anduptothedateofapproval

oftheauditedfinancialstatements.CouncilnotesthatfurtherprogresshasbeenmadeindevelopingandembeddingriskmanagementintheUniversityduring2016/17withthefurtherembeddingofcommonapproachtoriskregistersforthemajorCommitteesandanumberofkeyprojects;thedevelopmentofastandardisedsetofriskmanagementreportsforstrategicrisks;andtheconsiderationofgrossandnetriskandcontroleffectiveness.Itexpectstoseefurtherstrengtheningofriskmanagementduring2017/18.

TheUniversity’sStrategicRiskRegisterconsidersrisksintermsofthreethemes:capability,sustainabilityandreputation.Sixkeystrategicriskareasareidentified,namelyrisksrelatingto:

n strategy,leadershipandgovernance;

n compliance,controlandoperationalrisks;

n financialsustainability;

n academicexcellence;

n recruiting,rewardingandretainingstaff;and

n relationshipswiththecollegesandthePermanentPrivateHalls.

TheStrategicRiskRegistercapturesthekeyriskstoachievingtheobjectivesintheUniversity’sStrategicPlan,andisasummaryofthekeyrisksfacingtheUniversityasawhole.IndrawingtogetherthisRegister,considerationhasbeengiventotheriskregistersfromthemajorcommitteesofCouncil,othercommitteeswithaparticularriskfocus(suchastheHealthandSafetySubcommitteeandtheSecuritySubcommittee),theacademicdivisions(whichincorporaterisksfromthedepartmentsandfaculties),themajorservices,includingITandEstatesServices,andthesubsidiarycompanies.Theregisterthereforecombinesthetop-down,strategicidentificationofrisk,drivenbytheStrategicPlan,withtheconsiderationofbottom-up,localrisksfromacrosstheUniversity.

SupportingriskmanagementreportshavebeendevelopedforeachoftherisksintheStrategicRiskRegister.Thesereportsprovidemoredetailontherisks,howtheyaremanaged,andtheeffectivenessofthecontrolsinplace.Theyareownedprimarilybytherelevantmajorcommittees,andtheyprovideanongoingrecordofriskmanagementactivityagainsteachriskfactor.

Risk Management Statement


CouncilisresponsiblefordeterminingthesystemofinternalcontroloperatedbytheUniversityandformonitoringitsadequacyandeffectiveness.Itacceptsthatitisneitherpossiblenordesirabletobuildacontrolenvironmentwhichisfreefromrisk.ThereisatensionbetweentheacknowledgedadvantagesoftheUniversity’shighly-devolvedoperatingmodelandtherisksinherentinsuchadevolvedstructure.Thedevolvednatureofauthorityandresponsibilitycanpresentachallengetotheachievementofinternalcontrol.

TheUniversity’ssystemofinternalcontrolcanthereforeprovidereasonablebutnotabsoluteassuranceoverthegovernance,operational,compliance,management,quality,reputationalandfinancialriskstotheUniversity.ThesystemofinternalcontrolisdesignedtomanagetheprincipalriskstotheachievementoftheUniversity’saimsandobjectivesefficiently,effectivelyandeconomically;tosafeguardtheassetsforwhichCouncilisresponsible,includingpublicfundsandotherassets;andtoensurethatliabilitiesincurredarerecordedandmanagedeffectively.

ThefollowingprocesseshavebeenestablishedtoreviewtheadequacyandeffectivenessoftheUniversity’ssystemofinternalcontrol:

n TheAuditandScrutinyCommitteemeetsfourtimesduringtheyear.ItcarriesoutregularanddetailedmonitoringofinternalcontrolsonbehalfofCouncil.TheCommitteeagreesaprogrammeofworkfortheinternalauditfunction;receivesregularreportsfromtheinternalauditorsandfrommanagementontheadequacyandeffectivenessofinternalcontrols;receivesreportsfromtheexternalauditors;andagreestheactionsnecessarytoimplementrecommendedimprovements,amongothermatters.

n CouncilreceivesregularreportsfromtheAuditandScrutinyCommitteeoninternalcontrolandthebusinessoftheCommittee.

n CouncilmeetsatleasteighttimesduringtheyeartoconsiderthestrategicdirectionandtheeffectiveadministrationoftheUniversity.

n PricewaterhouseCoopersLLP(‘PwC’)providesinternalauditservicesfortheUniversity.PwCprovidesanannualopinionontheadequacyandtheeffectivenessofinternalcontrolsandriskmanagementacrosstheUniversity,inaccordancewithHEFCE’s‘AuditCodeofPractice’6.

n KPMGLLP(‘KPMG’)providesexternalauditservicesfortheUniversity.KPMGprovidesanannualopiniononwhetherfunds(includingpublicfunds)havebeenappliedfortheintendedpurposes.Theexternalauditorsalsoreferintheirannualmanagementlettertoanycontroldeficienciesarisingfromtheaudit,inaccordancewiththe‘AuditCodeofPractice’.

n TheUniversity’sFinancialRegulationssetoutprocessesdesignedtoensurethesafeguardingofassetsandtheeffectivemanagementofliabilities.

CouncilconfirmsthattheUniversity’ssystemofinternalcontrolhasbeeninplaceandoperatingeffectivelyduringtheyearended31July2017,anduptothedateofapprovaloftheauditedfinancialstatements.

Statement of Internal Control

6HEFCE’sAuditCodeofPracticeisAnnexAtotheMemorandumofassuranceandaccountabilitybetweenHEFCEandinstitutions.


Qualified Opinion on financial statements

WehaveauditedthefinancialstatementsoftheUniversityofOxford(‘theUniversity’)fortheyearended31July2017whichcomprisetheConsolidatedandUniversityStatementsofComprehensiveIncome,ConsolidatedandUniversityStatementsofChangesinReserves,ConsolidatedandUniversityBalanceSheetsandConsolidatedStatementofCashFlowsandrelatednotes,includingtheStatementofAccountingPolicies.

Inouropinion,exceptfortheeffectsofthematterdescribedinthe“BasisforQualifiedOpiniononFinancialStatements”sectionofourreport,thefinancialstatements:

n giveatrueandfairviewofthestateoftheGroup’sandtheUniversity’saffairsasat31July2017,andoftheGroup’sandtheUniversity’sincomeandexpenditure,gainsandlossesandchangesinreserves,andoftheGroup’scashflows,fortheyearthenended;

n havebeenproperlypreparedinaccordancewithUKaccountingstandards,includingFRS102theFinancialReportingStandardapplicableintheUKandRepublicofIreland,andwiththe2015StatementofRecommendedPractice–AccountingforFurtherandHigherEducation;and

n meettherequirementsofHEFCE’sAccountsDirectiontohighereducationinstitutionsfor2016/17financialstatements.

Basis for qualified opinion on financial statements

Asexplainedinnote1totheStatementofAccountingPolicies,theUniversityhasnotincludedthetransactionsandbalancesoftheOxfordUniversityPress(‘thePress’)initsfinancialstatements.AsthePressisadepartmentoftheUniversityratherthanaseparatelegalentity,inouropinion,undertherelevantaccountingstandards,thetransactionsandbalancesofthePressshouldhavebeenincludedintheUniversityandGroupfinancialstatements.HadtheUniversityaccountedforthePressaspartoftheUniversity,theUniversityandGroupfinancialstatementsfortheyearended31July2017wouldhaverecognisedadditionalnetassetsofsome£582million(2016:£636million),anincreaseinthereportedsurplusfortheyearofsome£79million(2016:increaseinsurplus£48million)andareductioninOthercomprehensive

incomeof£95million(2016:increaseinOthercomprehensiveincomeof£122million)basedonunauditedmanagementaccountsofthePressto31July2017.ExtractsfromtheaccountsofthePressfortheyearended31March2017areincludedforinformationatpages73–78butdonotformpartofthesefinancialstatements.

Wequalifiedourauditopiniononthefinancialstatementsfortheyearended31July2016withregardtothissamedisagreement.

WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UK)(‘ISAs(UK)’)andapplicablelaw.Ourresponsibilitiesaredescribedbelow.Wehavefulfilledourethicalresponsibilitiesunder,andareindependentoftheGroupinaccordancewith,UKethicalrequirementsincludingtheFRCEthicalStandard.Webelievethattheauditevidencewehaveobtainedisasufficientandappropriatebasisforourqualifiedopinion.

Going concern

Wearerequiredtoreporttoyouifwehaveconcludedthattheuseofthegoingconcernbasisofaccountingisinappropriateorthereisanundisclosedmaterialuncertaintythatmaycastsignificantdoubtovertheuseofthatbasisforaperiodofatleasttwelvemonthsfromthedateofapprovalofthefinancialstatements.Wehavenothingtoreportintheserespects.

Other information

Councilisresponsiblefortheotherinformation,whichcomprisestheStrategicReview,FinancialReview,CorporateGovernanceStatement,RiskManagementStatementandStatementofInternalControl.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationand,accordingly,wedonotexpressanauditopinionoranyformofassuranceconclusionthereon.

Ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhether,basedonourfinancialstatementsauditwork,theinformationthereinismateriallymisstatedorinconsistentwiththefinancialstatementsorourauditknowledge.Basedsolelyonthatwork,exceptfortheconsequentialeffectsofthematterdescribedinthe“BasisforQualifiedOpiniononFinancialStatements”sectionofourreportontherelateddisclosuresintheotherinformation,wehavenotidentifiedmaterialmisstatementsintheotherinformation.

Independent Auditor’s Report to the Members of Council of the University of OxfordReport on the audit of the financial statements


Council’s responsibilities

Asexplainedmorefullyintheirstatementsetoutonpage23,Councilisresponsiblefor:thepreparationofthefinancialstatementsandforbeingsatisfiedthattheygiveatrueandfairview;suchinternalcontrolasitdeterminesisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror;assessingtheGroupandUniversity’sabilitytocontinueasagoingconcern,disclosing,asapplicable,,mattersrelatedtogoingconcern;andusingthegoingconcernbasisofaccountingunlessiteitherintendstoliquidatethegrouportheUniversityortoceaseoperations,orhasnorealisticalternativebuttodoso.

Auditor’s responsibilities

Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueouropinioninanauditor’sreport.Reasonableassuranceisahighlevelofassurance,butdoesnotguaranteethatanauditconductedinaccordancewithISAs(UK)willalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorinaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthefinancialstatements.

AfullerdescriptionofourresponsibilitiesisprovidedontheFRC’swebsiteatwww.frc.org.uk/auditorsresponsibilities.

Report on other legal and regulatory requirementsWearerequiredtoreportonthefollowingmattersundertheHEFCEAuditCodeofPractice(effective1August2016)issuedundertheFurtherandHigherEducationAct1992.

Inouropinion,inallmaterialrespects:

n fundsfromwhateversourceadministeredbytheGrouportheUniversityforspecificpurposeshavebeenproperlyappliedtothosepurposesandmanagedinaccordancewithrelevantlegislation;

n incomehasbeenappliedinaccordancewiththeUniversity’sStatutes;and

n fundsprovidedbyHEFCEhavebeenappliedinaccordancewiththeMemorandumofAssuranceandAccountabilityandanyothertermsandconditionsattachedtothem.

The purpose of our audit work and to whom we owe our responsibilitiesThisreportismadesolelytotheCounciloftheUniversityofOxford,inaccordancewiththeUniversity’sStatutes.OurauditworkhasbeenundertakensothatwemightstatetoCouncil’smembersthosematterswearerequiredtostatetotheminanauditor’sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheUniversityandCouncilforourauditwork,forthisreport,orfortheopinionswehaveformed.

Michael Rowley for and on behalf of KPMG LLP, Statutory AuditorCharteredAccountantsOneSnowhillSnowHillQueenswayBirminghamB46GH


TheactivitiesoftheOxfordUniversityPress(‘thePress’)arenotincludedwithintheUniversity’sFinancialStatements.ExtractsfromtheaccountsofthePressfortheyearended31March2017areincludedforinformationatpages73-78butdonotformpartoftheseFinancialStatements.

Allactivitiesrelatetocontinuingoperations.

Consolidated & University Statements of Comprehensive Income For the year ended 31 July 2017

Consolidated University2016/17

£’m2015/16

£’m2016/17

£’m2015/16

£’mIncomeTuitionfeesandeducationcontractsFundingbodygrantsResearchgrantsandcontractsOtherincomeInvestmentincome

12345

307.2194.6564.9227.7

14.4

293.5192.5537.4213.0

8.8

295.3194.6559.0187.5

14.3

277.2192.5534.3168.0

7.8Total income before donations 1,308.8 1,245.2 1,250.7 1,179.8

DonationsandendowmentsDonationofheritageassets

66,14

88.43.2

74.42.2

91.53.2

71.02.2

Total Income 1,400.4 1,321.8 1,345.4 1,253.0 ExpenditureStaffcostsStaffcosts-movementinpensionsprovisionOperatingexpenditureDepreciationInterestandotherfinancecosts

724

99,12,13

8

714.8(6.5)

576.2102.6

9.9

680.311.0

545.387.112.8

696.3(9.3)

530.9102.2

9.9

661.510.6

504.486.912.7

Total Expenditure 1,397.0 1,336.5 1,330.0 1,276.1 Surplus/(Deficit) before other gains 3.4 (14.7) 15.4 (23.1)Gainsoninvestments

Shareofsurplus/(deficit)onJointVentures

5

16

218.1

(0.2)

188.0

-

212.9

-

186.1

-Surplus before tax 221.3 173.3 228.3 163.0 Taxation 10 (1.6) (0.4) (1.3) -Total Comprehensive Income 219.7 172.9 227.0 163.0 Represented byUnrestrictedcomprehensiveincomefortheyearEndowmentcomprehensiveincomefortheyearRestrictedcomprehensiveincomefortheyear

129.879.610.3

95.573.9

3.5

139.777.110.3

84.674.9

3.5219.7 172.9 227.0 163.0


Consolidated & University Statements of Changes in Reserves For the year ended 31 July 2017

Endowment Reserves Income and Expenditure Reserves

Permanent £’m

Expendable £’m

Restricted £’m

Unrestricted £’m

Total £’m

ConsolidatedBalance at 31 July 2015 718.3 117.6 74.2 1,929.6 2,839.7 IncomeExpenditure

25.3(15.6)

12.9(5.1)

20.8(17.3)

1,262.8(1,298.5)

1,321.8(1,336.5)

Surplus/(deficit) 9.7 7.8 3.5 (35.7) (14.7)Reservestransfer (9.9) - - 9.9 -Other comprehensive income

55.1 11.2 - 121.3 187.6

Balance at 31 July 2016 773.2 136.6 77.7 2,025.1 3,012.6 IncomeExpenditure

16.4(16.4)

18.0(6.2)

32.7(22.4)

1,333.3(1,352.0)

1,400.4(1,397.0)

Surplus/(deficit) - 11.8 10.3 (18.7) 3.4 ReservestransferOthercomprehensiveincome

(10.2)65.7

-12.3

--

10.2138.3

-216.3

Balance at 31 July 2017 828.7 160.7 88.0 2,154.9 3,232.3

UniversityBalance at 31 July 2015 651.0 117.6 74.2 1,932.4 2,775.2 IncomeExpenditure

25.3-

12.9(5.1)

20.8(17.3)

1,194.0(1,253.7)

1,253.0(1,276.1)

Surplus/(deficit) 25.3 7.8 3.5 (59.7) (23.1)OthercomprehensiveincomeReservestransfer

53.5(22.9)

11.2-

--

121.422.9

186.1-

Balance at 31 July 2016 706.9 136.6 77.7 2,017.0 2,938.2 IncomeExpenditure

16.4-

18.0(6.2)

32.7(22.4)

1,278.3(1,301.4)

1,345.4(1,330.0)

Surplus/(deficit) 16.4 11.8 10.3 (23.1) 15.4 OthercomprehensiveincomeReservestransfer

60.6(24.1)

12.3-

--

138.724.1

211.6-

Balance at 31 July 2017 759.8 160.7 88.0 2,156.7 3,165.2


TheactivitiesoftheOxfordUniversityPress(‘thePress’)arenotincludedwithintheUniversity’sFinancialStatements.ExtractsfromtheaccountsofthePressfortheyearended31March2017areincludedforinformationatpages73-78butdonotformpartoftheseFinancialStatements.

TheFinancialStatementswereapprovedbyCouncilon27November2017andsignedonitsbehalfby:

Professor L. Richardson G. F. B. KerrVice-Chancellor Director of Finance

Consolidated & University Balance Sheets As ar 31 July 2017

Consolidated University2017 2016 2017 2016

£’m £’m £’m £’mNon-current assetsIntangibleassetsandgoodwillProperty,plantandequipmentHeritageassetsInvestments

12131415

1.21,365.7

85.32,158.5

1.41,329.0

80.52,057.8

1.41,364.7

85.32,094.9

1.61,327.6

80.52,005.2

3,610.7 3,468.7 3,546.3 3,414.9 Current assetsInventoriesTradeandotherreceivables-duewithinoneyear-dueafteroneyearInvestmentsCash&cashequivalents

17181920

2.9

232.75.9

109.5287.5

2.9

224.57.2

51.1217.1

1.3

233.05.9

107.5272.5

1.4

227.17.2

49.9183.1

638.5 502.8 620.2 468.7Creditors:Amountsfallingduewithinoneyear 21 (535.9) (493.1) (525.2) (481.6)Net current assets 102.6 9.7 95.0 (12.9)Total assets less current liabilities 3,713.5 3,478.4 3,641.3 3,401.9 Creditors:amountsfallingdueaftermorethanoneyear

22 (260.1) (256.8) (260.1) (256.8)

Provisions for liabilitiesPensionprovisionsOtherprovisions

2425

(194.1)(26.8)

(197.4)(11.6)

(190.1)(25.9)

(196.2)(10.7)

Total net assets 3,232.3 3,012.6 3,165.2 2,938.2 ReservesEndowment reserves-Permanent-Expendable

2626

828.7160.7

773.2136.6

759.8160.7

706.9136.6

989.4 909.8 920.5 843.5 Restricted reserves-Incomeandexpenditurereserve 27 88.0 77.7 88.0 77.7Unrestricted reserves-Incomeandexpenditurereserve 2,154.9 2,025.1 2,157.7 2,017.0

2,242.9 2,102.8 2,244.7 2,094.7 Total reserves 3,232.3 3,012.6 3,165.2 2,938.2


Consolidated Statement of Cash Flows For the year ended 31 July 2017

2016/17 2015/16£’m £’m

Cash flows from operating activitiesSurplus for the year 219.7 172.9 Adjustment for:DepreciationAmortisationofintangibles(Gain)oninvestmentsDecreaseininventories(Increase)inreceivablesIncreaseinpayablesIncreaseinotherprovisions(Decrease)/increaseinpensionprovisionsHeritageassetsnon-cashdonationUnrealisedexchangeratelossAdjustment for investing or financing activitiesInvestmentincomeInterestpayableEndowmentincomeCapitalgrantincomeProfitondisposalofproperty,plantandequipment

9,1312

17,1821,22

252414

58

13

102.60.2

(218.1)-

(13.3)78.115.2(6.6)(3.2)1.5

(14.4)9.9

(43.7)(81.2)

-

87.10.1

(188.0)0.2

(5.2)51.6

4.410.9(2.2)15.3

(8.8)12.8

(37.9)(77.7)

-Net cash flows from operating activities 46.7 35.5 Cash flows from investing activitiesCapitalgrantsreceiptsPaymentstoacquireheritageassetsPaymentstoacquireproperty,plantandequipmentPaymentstoacquireintangibleassetsNet(investment)/disinvestmentincurrentinvestmentsNetdisinvestment/(investment)innon-currentinvestmentsInvestmentincome

1413121915

5

52.4(1.6)

(139.3)-

(58.4)117.4

13.6

63.1(1.3)

(154.3)(1.4)14.1

(26.6)6.5

Net cash flows from investing activities (15.9) (99.9)Cash flows from financing activitiesInterestpaidonborrowingsandfinanceleasesEndowmentcashreceivedRepaymentofborrowingsNewborrowings

82121

(6.6)50.2(2.4)

-

(7.5)53.0(2.3)

-Net cash flows from financing activities 41.2 43.2 Net increase/(decrease) in cash and cash equivalents 72.0 (21.2)Cash and cash equivalents at beginning of year 217.1 233.3 Effectofforeignexchangeratechanges (1.6) 5.0Cash and cash equivalents at end of year 20 287.5 217.1


Statement of Accounting Policies

1. Basis of AccountingThefinancialstatementshavebeenpreparedunderthehistoricalcostconvention,modifiedtoincludecertainitemsatfairvalueinaccordancewiththeapplicableaccountingstandardFRS102(FinancialReportingStandard102)andtheStatementofRecommendedPractice:AccountingforFurtherandHigherEducation(FEHESORP),exceptfortheexclusionofOxfordUniversityPress(‘Press’).

TheUniversityisapublicbenefitentityandhasappliedtherelevantpublicbenefitrequirementsofFRS102.

ThefunctionalcurrencyoftheUniversityisPoundsSterling,thecurrencyoftheUnitedKingdom,theprimaryeconomicenvironmenttheUniversityoperatesin.TheconsolidatedfinancialstatementsarealsopresentedinPoundsSterling.Foreignoperationsareincludedinaccordancewiththepoliciessetoutinpolicy3.

Judgementsmadebymanagementintheapplicationoftheseaccountingpoliciesthathaveasignificanteffectonthefinancialstatementsandestimateswithasignificantriskofmaterialadjustmentinthenextyeararediscussedattheendofthesepolicies.

Exclusion of the Press

ThefinancialstatementsdonotincludethetransactionsandbalancesofthePresswhichisadepartmentoftheUniversityratherthanaseparatelegalentity.UndertheUniversity’sStatutesandRegulationsthefinancialstatementsofthePressshallnotbeincludedintheUniversityfinancialstatementsandtheDelegacyofthePressisresponsibleforpreparingseparateauditedaccountsrelatingtothePressforsubmissiontoCouncil.ExtractsfromtheaccountsofthePressfortheyearended31March2017areincludedforinformationatpages73-78butdonotformpartofthesefinancialstatements.WherefundsaretransferredfromtheReservesofthePressthesearereflectedasincomeinthefinancialstatementsoftheUniversity.TheexclusionofthePressfromtheUniversityandConsolidatedfinancialstatementsishowevernotinaccordancewithapplicableAccountingStandardsandtheStatementofRecommendedPractice:AccountingforFurtherandHigherEducation(FEHESORP).

ThePresswillbeconsolidatedintothefinancialstatementsoftheUniversityfortheyearending31July2018withprioryearcomparativesandthereforenolongerbeexcludedasdetailedabove.

TheUniversityhascompliedwithallotherrequirementsofFRS102,theFEHESORP,andHEFCEaccountsguidanceinpreparationofthefinancialstatements.

2. Scope of the Financial Statements Basis of consolidation

Thefinancialstatements(apartfromtheUniversity’sownbalancesheet,incomestatementandrelatednotes)consolidatetheaccountsoftheUniversityandofitssubsidiaryundertakingsforthefinancialyearto31July2017.

Theresultsofsubsidiariesacquiredorsoldinthecurrentorprioryearsareconsolidatedfortheperiodsfromortothedateonwhichcontrolpassed.Acquisitionsareaccountedforunderthepurchasemethod.

ThefinancialstatementsdonotconsolidatetheaccountsoftheOxfordUniversityStudentUnionanditssubsidiarycompany,astheyareseparateandindependentlegalentitiesinwhichtheUniversityhasnofinancialinterestanditdoesnotexercisedirectcontrolordominantinfluenceovertheirpolicydecisions.

ThefinancialstatementsdonotconsolidatetheaccountsofthoseCollegesoftheUniversitythatareseparateandindependentlegalentities.TheaccountsofKelloggCollegeandStCrossCollegeareincludedastheyaredepartmentsoftheUniversity.

Non-companycharitablesubsidiaries,includingtrusts,areaggregatedintotheUniversityaccountswheretheymeetthedefinitionofa‘SpecialTrust’aspersection287oftheCharitiesAct2011.Whereatrustdoesnotmeetthedefinitionofaspecialtrust,butcontrolcanbedemonstratedbytheUniversity,itisconsolidated.

InvestmentfundswheretheUniversityisthemajorityinvestor,butdoesnotexerciseanymanagementcontrolareexcludedfromconsolidationinaccordancewiththeprovisionsofSection9ofFRS102,andaccountedforasInvestmentAssets.

Intheconsolidatedfinancialstatements,jointventuresareaccountedforusingthe‘EquityMethod’.TheyareinitiallyrecognisedattransactioncostadjustedeachyeartoreflecttheUniversity’sshareofthejointventures’ComprehensiveIncome,recognisedthroughOtherComprehensiveIncome.

Intheconsolidatedfinancialstatements,associatedundertakingsareaccountedforusingthe‘EquityMethod’.TheyareinitiallyrecognisedattransactioncostadjustedeachyeartoreflecttheUniversity’sshareoftheassociates’ComprehensiveIncome,recognisedthroughOtherComprehensiveIncome.


Going concern

Aftermakingenquiries,CouncilhasareasonableexpectationthattheUniversityhasadequateresourcestocontinueinoperationalexistencefortheforeseeablefuture.

TheUniversitypreparesbudgetsandforecastsonanannualbasisandoperatesanongoingfiveyearforecastsustainabilityreviewinlinewithHEFCEguidance.ThegoingconcernnatureoftheUniversityhasbeenconsideredforaperiodofgreaterthan12monthsfromthedateofapprovalofthefinancialstatements.

Detailedcashflowforecastscoveringaperiodofgreaterthan12monthshavebeenpreparedandtheUniversityissatisfiedthatitcanmeetitsdaytodayworkingcapitalneedsoutofcashandliquidinvestments.CouncilisnotawareofanymaterialuncertaintieswhichwouldpreventtheUniversityfromcontinuingasagoingconcern.

Forthesereasons,itcontinuestoadoptthegoingconcernbasisinpreparingtheaccounts.

3. Foreign CurrenciesTransactionsinforeigncurrenciesarerecordedattherateofexchangeonthetransactiondate.Monetaryassetsandliabilitiesdenominatedinforeigncurrenciesarereportedattheratesofexchangeprevailingatthebalancesheetdate.Non-monetaryassetsandliabilitiesmeasuredathistoricalcostinaforeigncurrencyaretranslatedusingtheexchangerateatthedateofthetransaction.ForeignexchangedifferencesarisingontranslationarerecognisedintheStatementofComprehensiveIncome.

Theresultsofoverseasoperationsaretranslatedattheaverageratesofexchangeduringtheperiodandtheirbalancesheetsattheratesprevailingatthebalancesheetdate.ExchangedifferencesarisingfromthistranslationofforeignoperationsarereportedasanitemofOtherComprehensiveIncome.

4. IncomeUniversityincomefallsintosevenmainmaterialcategories:

n tuitionfeesandeducationalcontracts

n provisionofothergoodsandservices

n royaltyincome

n investmentincome

n researchgrantsandcontracts

n fundingbodygrants

n donatedandendowmentincome

Incomerecognitionisdeterminedbythenatureofthetransaction,incomesource,andwhetherornotthetransactionhascommercialsubstance.

Transactions with commercial substance

Whereatransactionhascommercialsubstanceitisaccountedforasarevenuetransaction.Incomeisrecognisedinlinewiththeprovisionoftheassociatedgoodsorservices,withreferencetothetermsofthecontract.

Tuition fees and educational contracts

FeeincomeisstatedgrossofanyexpenditureandcreditedtotheStatementofComprehensiveIncomeovertheperiodstudentsstudy.Wheretheamountofthetuitionfeeisreduced,incomereceivableisshownnetofthediscount.Bursariesandscholarshipsareaccountedforgrossasexpenditureandnotdeductedfromincome.

Tuitionandothercoursefeesrelatedirectlytotheprovisionofspecificacademicandnon-academiccourses.Incomeisrecognisedonapro-ratabasisacrossthelengthofthecourse,inlinewiththeprovisionofthecoursestostudents.

Professionalcoursefeesandothereducationalcontractsareaccountedforasforservicecontractsbelow.

Provision of other goods and services

IncomefromthesaleofgoodsorservicesiscreditedtotheStatementofComprehensiveIncomewhenthegoodsorservicesaresuppliedtotheexternalcustomer.

Whereservicesarebeingrendered,butarenotcompleteattheendoftheperiod,incomeisrecognisedwithreferencetothestageofcompletion/degreeofprovisionoftheservice,asdeterminedonanappropriatebasisforeachcontract.

Royalty income

Royaltyincomeisrecognisedonanaccrualsbasisinaccordancewiththesubstanceofrelevantagreements.

Investment income

Refertopolicy13forinvestmentincomerecognitionpolicy.

Agency income

FundstheUniversityreceivesanddisbursesaspayingagentonbehalfofafundingbodyareexcludedfromtheincomeandexpenditureoftheUniversitywheretheUniversityisexposedtominimalrisk.

Transactions without commercial substance

WheretheUniversityreceivesincomeonabasisthatiswithoutcommercialsubstanceitaccountsforthisonaNon-ExchangeTransactionbasis.ANon-ExchangeTransactionisdefinedaswhen:

“Anentityreceivesvaluefromanotherentitywithoutdirectlygivingapproximatelyequalvalueinexchange”.


Performance model

IncomeisrecognisedwithintheStatementofComprehensiveIncomewhenthegrantisreceivable(legal/contractualcommitment)andperformance-relatedconditionsspecifiedintheagreementaremet.Intheabsenceofperformanceconditions,incomeisrecognisedinfullassoonasitbecomesreceivable.

Performanceconditionsaredefinedasfollows:

“Aconditionthatrequirestheperformanceofaparticularlevelofserviceorunitsofoutputtobedelivered,withpaymentof,orentitlementto,theresourcesconditionalonthatperformance”.

ResourcesreceivedinadvanceofcompletionofperformanceconditionsarerecognisedonthebalancesheetasdeferredincomeandreleasedtotheStatementofComprehensiveIncomeasconditionsaremet.Wheregrantsarereceivedinarrears,accruedrevenueorreceivableassetsarerecognisedinlinewithincome.

Government grants

BothrevenueandcapitalgovernmentgrantsareaccountedforunderthePerformanceModel.

n HEFCEfundinggrants

Forfundinggrantsrelatingtoasingleacademicyear,incomeisrecognisedinfullintheperiodtowhichthegrantrelates.Grantsrelatingtomorethanasingleyeararerecognisedpro-rataacrossthetermofthegrant.

Non-government grants, donations and endowments

Grantanddonationincomereceivedfromanon-governmentalsourceisaccountedforunderthePerformanceModel.

Incomeisrecognisedasdonationandendowmentincome,withtheexceptionoffundingforthepurposesofresearchwhichisrecognisedas‘ResearchGrantsandContracts’.

Non-governmentgrantanddonationincomeissplitintofourclasses:

n Non-governmentgrantsanddonatedincomewithperformanceconditions

IncomeisrecognisedwithintheStatementofComprehensiveIncomewhenreceivable(legal/contractualcommitment)andperformanceconditionshavebeenmet.

n Donationswithrestrictions

Adonationisconsideredtohavearestrictionwhenthegiftagreementcontains:

“Arequirementthatlimitsordirectsthepurposesforwhicharesourcemaybeusedthatdoesnotmeetthedefinitionofaperformance-relatedcondition”.

Incomewithrestrictions,butnoperformanceconditions,isrecognisedwithintheStatementofComprehensiveIncomewhenthegrantisreceivable(legal/contractualcommitment)andrecordedwithinrestrictedreserves.

Asthefundingisexpendedagainsttherestrictionitistransferredtounrestrictedreservesbywayofareservestransfer.

n Donationswithoutrestrictions

IncomewithneitherrestrictionsnorperformanceconditionsisrecognisedwithintheStatementofComprehensiveIncomewhenthegrantisreceivable(legal/contractualcommitment)andrecordedwithinunrestrictedreserves.

TheUniversityonoccasionreceivesdonationsandendowmentswhicheithertaketheformofabequestwhichwillbepaiduponthedeathofdonororwillbepaidinaseriesoftranches.ItistheUniversity’spolicytorecognisetheincomeonthesedonationsandendowmentsonceithasalegalorconstructiverighttoreceivethem,withtheamountsduefromthedonorsrecognisedontheBalanceSheetasDonationsandEndowmentsReceivable.

n Endowments

Refertopolicy5forincomerecognitionpolicyforendowments.

Capital grants

Grants,bothgovernmentandnon-government,forthepurposeofpurchasingorconstructingspecificassetsarerecognisedasincomeupontheassetbeingbroughtintouse,orinlinewithphasecompletionoflargeconstructionprojects.GrantswheretheUniversityhasdiscretionovertheassetspurchased/builtarerecognisedinfullasincomewhenthegrantbecomesreceivable.

Grantincomeisonlyrecognisedacrosstheusefullifeofanassettotheextentthatthegrantspecificallyfundstheoperation/maintenanceoftheasset.

Research income

Incomerecognitionforresearchfundingisdependentuponthesourceofthefundingandthenatureofthetransaction.Incomeisclassifiedas‘Researchgrantsandcontracts’regardlessofsourcewhenitmeetstheFrascatidefinitionofresearch.

Thefollowingspecificresearchincomerecognitioncriteriahavebeenapplied;

ResearchfundingfromUnitedKingdomResearchCouncils,andtheEuropeanCommissionisreceivedonthebasis


ofreimbursingtheUniversityforcostsincurredinperformanceoftheresearch.Incomeisrecognisedinlinewithexpenditurewhichcreatesarighttoreceivefundingfromthesebodies.

Fundingfromcharitiesandindustryisrecognisedonbasessetoutinthetermsofindividualfundingagreements.Inthemajorityofcasesincomeisrecognisedonareimbursementbasis,withincomerecognisedascostsareincurredforwhichtheUniversityhasarighttoreimbursement.

Thefollowingspecificresearchincomerecognitioncriteriahavebeenapplied:

n Wherefundingisfromagovernmentbody,expenditureonthegrantpurposeispresumedtobetheperformanceconditionunlessspecificallydisallowedunderthefundingagreement.

n Fundingfromcharitiesandindustryisaccountedforasnon-governmentgrantincomeunlessitisdemonstrablethatarevenuetransactionhastakenplacewithnearequalvaluebeingexchanged.

5. Endowments Endowmentsareaclassofdonationwherethedonorrequirestheoriginalgiftbeinvested,withthereturntobespentagainstthedonor’scharitableaims.Thedonorcanspecifythatthecapitalcanbespent(expendableendowment)ormaintainedinperpetuity(permanentendowment).

Endowmentsareclassifiedas‘Non-ExchangeTransactions’andareaccountedforunderthePerformanceModel.Theoriginalendowmentgiftisrecognisedas‘DonationandEndowment’incomewhenreceivable.

Permanent endowments

n Permanent Restricted

Donorhasindicatedtheoriginalgiftbemaintainedinperpetuity,withinvestmentincomespentontherestrictedpurposesoftheUniversity

n Permanent Unrestricted

Donorhasindicatedtheoriginalgiftbemaintainedinperpetuity,withinvestmentincomespentonthegeneralpurposesoftheUniversity.

Uponinitialincomerecognitionpermanentendowmentsarerecordedasendowmentcapitalwithinpermanentendowmentreserves.

InvestmentincomeandendowmentspendisaccountedforundertheTotalReturnmodel.

Total Return

TheUniversityoperatesaTotalReturnendowmentinvestmentmanagementpolicyforpermanentendowmentsandanassociatedTotalReturnAccountingpolicy.TotalReturnAccountingallowsthespendingofpermanentendowmentinvestmentgainsregardlessofwhethertheyarerealised/unrealisedcapitalgainsordividend/interestincome.

InvestmentgainsonpermanentendowmentassetsarerecognisedintheStatementofComprehensiveIncomeasaccrued.ThegainsarerecordedwithintheUniversity’spermanentendowmentreservesasunappliedreturn.

Forpermanentrestrictedendowmentsunappliedreturnistransferredtounrestrictedreservesasexpenditureisincurredagainstthecharitablepurposesofeachendowment.

Forpermanentunrestrictedendowmentsunappliedreturnistransferredtounrestrictedreservesunderaspendrulebasedontheestimatedlong-terminvestmentrealrateofreturn.Thisiscalculatedasapercentage(currently4.0%)ofthevalueofthebrought-forwardendowment.

Indexation of permanent endowment capital

UKcharitylawrequirestheUniversitytomaintainthecharitablebenefitofallpermanentendowmentsinperpetuity.TheUniversityhasadoptedapolicyofindexingbroughtforwardpermanentendowmentcapitalbyCPItomaintaintheoriginalcapitalvalueinrealterms.Atransferismadeonanannualbasisfromunappliedreturntoanindexationreserve(asubsetofpermanentendowmentcapital).

Expendable endowments

n Expendable Restricted

Donorhasindicatedthatthecapitaloftheoriginalgiftmaybespentontherestrictedpurposesdefinedbythedonoralongwithanyinvestmentincome.Allcapitalmustbeinvested.

Expendablerestrictedendowmentsuponinitialincomerecognitionarerecognisedwithinexpendableendowmentreserves.

InvestmentincomeisrecognisedwithintheStatementofComprehensiveIncomeasaccruedandrecordedasaccumulatedincomewithinexpendableendowmentreserves.

Accumulatedincomeisreleasedtounrestrictedreservesasareservestransferinlinewithspendagainsttherestrictedpurposesofeachendowment.


6. Employee Benefits Short-term employee benefits

Short-termemploymentbenefitssuchassalariesandcompensatedabsencesarerecognisedasanexpenseintheyearemployeesrenderservicetotheUniversity.Aliabilityisrecognisedateachbalancesheetdatetotheextentthatemployeeholidayallowanceshavebeenaccruedbutnottaken,theexpensebeingrecognisedasstaffcostsintheStatementofComprehensiveIncome.

Post-employment benefits (pensions)

ThetwoprincipalpensionschemesfortheUniversity’sstaffaretheUniversitiesSuperannuationScheme(USS)andtheUniversityofOxfordStaffPensionScheme(OSPS).TheUniversityalsocontributesonbehalfofitsemployeestoanumberofotherpensionschemesincludingSuperannuationArrangementsoftheUniversityofLondon(SAUL),MedicalResearchCouncilPensionScheme(MRCPS)andNHSPensionScheme.

Theseschemesarealldefinedbenefitschemes,whichareexternallyfundedandcontractedoutoftheStateSecondPension(S2P).Eachfundisvaluedeverythreeyearsbyprofessionallyqualifiedindependentactuaries.

USS,OSPS,SAUL,andMRCPSaremulti-employerschemesforwhichitisnotpossibletoidentifytheassetsandliabilitiesbelongingtoindividualinstitutionalmembersduetothemutualnatureoftheschemes.Theseschemesarethereforeaccountedforasdefinedcontributionretirementbenefitschemes.

TheUniversitycontributestoUSS,OSPS,SAULandMRCPSatratessetbytheschemeactuariesandadvisedtotheUniversitybytheschemeadministrators.TheUniversitycontributestotheNHSPensionSchemeatratesinaccordancewiththeGovernment’sactuary’sreportonthescheme.

TheamountchargedtotheStatementofComprehensiveIncomerepresentsthecontributionspayabletoeachschemeinrespectoftheaccountingperiod,excludinganyextracostsincurredrelatedtoclearingschemedeficitsalreadyprovidedfor.

Aliabilityisrecordedwithinprovisionsforanycontractualcommitmenttofundpastdeficitswithinthemulti-employerschemesasdeterminedbytheschememanagement.TheassociatedexpenseisrecognisedintheStatementofComprehensiveIncome.

7. Leases and Service Concession Arrangements Finance leases

LeasesinwhichtheUniversityassumessubstantiallyalltherisksandrewardsofownershipoftheleasedassetareclassifiedasfinanceleases.

Leasedassetsacquiredbyfinanceleaseandassociatedleaseliabilityarestatedattheloweroffairvalueandthepresentvalueoftheminimumleasepaymentsatinceptionofthelease,lessaccumulateddepreciationandimpairmentlosses.

Leasepaymentsareapportionedbetweenthefinancechargeandthereductionoftheoutstandingliability.Thefinancechargeisallocatedtoeachperiodduringtheleasetermsoastoproduceaconstantperiodicrateofinterestontheremainingbalanceoftheliability.

TheUniversityrecognisesfinanceleasesonlyforagreementsof£100koraboveinlinewiththeminimumvalueatwhichProperty,PlantandEquipmentiscapitalised.

Operating leases

Costsinrespectofoperatingleasesarechargedonastraight-linebasisovertheleaseterm.Futurecommitmentsunderoperatingleasesaredisclosedinnote31.

Anyleasepremiumsorincentivesarerecognisedasareductioninexpensespreadevenlyovertheminimumleaseterm.ThedifferencebetweenexpenditurerecognisedandcashflowbenefitsreceivedisrecognisedasaliabilityreleasedtotheStatementofComprehensiveIncomeovertheleaseterm.

Service concession arrangements

Serviceconcessionarrangementsarefinanceleasearrangementswherebythelessoralsoprovidesservices(e.g.maintenanceandoperation)alongsideprovisionoftheassets.Serviceconcessionarrangementsareaccountedforonthesamebasisasfinanceleasesexceptfortheapportionmentofpayments.

Paymentundertheserviceconcessionarrangementisallocatedbetweenservicecosts,financechargesandfinancialliabilityrepaymentstoreducethefinancialliabilitytoniloverthelifeofthearrangement.

8. Intangible Assets and GoodwillGoodwill

Goodwillarisesonconsolidationandisbasedonthedifferencebetweenthefairvalueoftheconsiderationgivenfortheundertakingacquired,andthefairvalueofitsseparablenetassetsatthedateofacquisition.

Goodwillisamortisedoveritsestimatedusefullifeofbetweenfiveandtenyearsonastraight-linebasis.Afullyearofamortisationistakenintheyearofacquisition.

Goodwillisassessedforindicatorsofimpairmentateachbalancesheetdate.Ifthereisobjectiveevidenceofimpairment,animpairmentlossisrecognisedintheStatementofComprehensiveIncome.Therecoverableamountofgoodwillisthepresentvalueofthefuturecashflowsofthecash-generatingunitsofwhichthegoodwillisapart.


Negativegoodwillrelatingtonon-monetaryassetsisreleasedtotheStatementofComprehensiveIncomeasthoseassetsarerecoveredthroughdepreciationorsale.Negativegoodwillinexcessofthefairvaluesofthenon-monetaryassetsisreleasedtotheStatementofComprehensiveIncomeintheperiodinwhichthenon-monetaryassetsarerecovered.

Software Licenses

Softwarelicensescostingover£25kandwithalongerthan12monthlifearecapitalisedasintangibleassetsover5yearsortheremaininglengthofthelicense,whicheverisshortest.

Other internally generated intangibles

Nointernallygeneratedintangiblesarecapitalisedasthefutureinflowofeconomicbenefitscannotbeshowntobeprobable.

ResearchanddevelopmentcostsarewrittenofftotheStatementofComprehensiveIncomeasincurred.

9. Property, Plant and EquipmentProperty,PlantandEquipment(PPE)consistsofequipment,softwareandvehiclescostingover£25kandcapitalbuildingprojectsover£100k,landandcompletedbuildingshavingausefuleconomiclifeofgreaterthan1yearandnotintendedforresale.

Property,PlantandEquipment(otherthanpropertiesheldforinvestmentpurposes)isstatedatcostanddepreciatedonastraight-linebasisoverthefollowingperiods:

Freeholdbuildings 50yearsBuildingplantandequipment

20years

BuildingsonNationalHealthServicesites

50years

Leaseholdproperties 50yearsortheperiodoftheperiodoftheleaseifshorter

Refurbishmentonleaseholdproperties

20yearsortheperiodoftheleaseifshorter

Equipment 5–10yearsunlesstheresearchprojectorexpectedassetlifeislower

Freeholdlandandassetsinthecourseofconstructionarenotdepreciated.

Assetsareassessedforindicatorsofimpairmentateachbalancesheetdate.Ifthereisobjectiveevidenceofimpairment,animpairmentlossisrecognisedintheStatementofComprehensiveIncome.Assetsareconsideredtobeimpairediftheirrecoverablevalueislessthanbookvalue.TherecoverableamountofaPPEasset

isthehigherofitsfairvaluelesscoststosellanditsvalueinuse.

Whereindicatorsexistforadecreaseinimpairmentlossonassets,thepriorimpairmentlossisreversedonlytotheextentthatitdoesnotleadtoarevisedcarryingamounthigherthanifnoimpairmenthadbeenrecognised.

Borrowing costs

BorrowingcostsrelatingtopurchaseorconstructionofPPEassetsarerecognisedasanexpenseintheStatementofComprehensiveIncomeintheperiodinwhichtheyareincurred.

10. Heritage AssetsWorksofartandothervaluableartefacts(heritageassets)acquiredsince1August1999andvaluedatover£25karecapitalisedandrecognisedintheBalanceSheetatthecostorvalueoftheacquisition,wheresuchacostorvaluationisreasonablyobtainable.

Heritageassetsarenotdepreciatedsincetheirlongeconomiclifeandhighresidualvaluemeanthatanydepreciationwouldnotbematerial.

11. Donated AssetsTheUniversityreceivesbenefitsinkindsuchasgiftsofequipment,worksofartandproperty.ItemsofasignificantvaluedonatedtotheUniversity,which,ifpurchased,theUniversitywouldtreatasProperty,PlantandEquipment,arecapitalisedattheircurrentvalueanddepreciatedinaccordancewiththepolicysetoutabove.ThevalueofthedonationisincludedintheStatementofComprehensiveIncomeintheyeartheyarereceived.

12. Repairs and MaintenanceExpendituretoensurethataProperty,PlantandEquipmentassetmaintainsitspreviouslyrecognisedstandardofperformanceisrecognisedintheStatementofComprehensiveIncomeintheperiodinwhichitisincurred.TheUniversityhasaplannedmaintenanceprogramme,whichisreviewedannually.

13. Investments Basis of ValuationAllinvestmentswillinitiallyberecognisedatcostandsubsequentlymeasuredatfairvalueateachreportingdate.Wherefairvaluecannotbereliablymeasuredorinvestmentsarenotpubliclytraded,theywillbemeasuredatcostlessimpairment.

Investmentsinlistedsharesandventurecapitalvehicles(wheresharesarepubliclytradedortheirfairvaluecanbereliablymeasurable)aremeasuredatmarketvalue.ThemajorityoflistedsharesareinvestedthroughtheOxfordEndowmentandOxfordCapitalFunds.


Investmentpropertieswillbemeasuredatfairvalue,basedonaprofessionaltriennialvaluationundertakenbyanindependentCharteredSurveyor.Impairmentreviewsareconductedannually.

InvestmentsinsubsidiariesandassociatedundertakingsareaccountedforundertheCostModelandrecognisedattransactioncostlessaccumulatedimpairmentlosses.

Revaluation

Allgainsandlossesoninvestmentassets,bothrealisedandunrealised,arerecognisedintheStatementofComprehensiveIncomeastheyaccrue.

External entities

ExternalentitiessuchasCollegesandotherbodiescloselyassociatedwiththeUniversitycaninvestintheOxfordEndowmentandOxfordCapitalFunds.Sinceitisnotpossibletoshowthespecificinvestmentsoftheseentitiesinthevariousfunds,theamountsheldontheirbehalfbytheUniversityareshownasadeductionfromtheUniversity’sInvestmentAssets.

14. InventoriesInventoriesarestatedatthelowerofcostandsellingpricelesscoststosell.Wherenecessary,provisionismadeforobsolete,slow-movinganddefectivestocks.

ConsumablesarechargedtotheStatementofComprehensiveIncomeaspurchasedorreleasedfromstores.

15. Taxation statusTheUniversityisanexemptcharitywithinthemeaningofSchedule3oftheCharitiesAct2011andassuchislistedasacharitywithinthemeaningofParagraph1ofSchedule6totheFinanceAct2010.Accordingly,theUniversityispotentiallyexemptfromtaxationinrespectofincomeorcapitalgainsreceivedwithincategoriescoveredbySections472–488oftheCorporationTaxAct2010andSection256oftheTaxationofChargeableGainsAct1992totheextentthatsuchincomeorgainsareappliedtoexclusivelycharitablepurposes.

MostoftheUniversity’sprincipalactivitiesareexemptfromValueAddedTax(‘VAT’),butcertainactivitiesandotherancillarysuppliesandservicesareliabletoVATatvariousrates.ExpenditureincludesVATchargedbysupplierstotheUniversitywhereitisnotrecoverableandislikewiseincludedinthecostoffixedassets.

CommercialtradingactivitiesundertakenbytheUniversityareoperatedthroughitssubsidiarycompanies.ThisincomewillattractapplicableVATandtheprofitsareliabletoCorporationTax.However,thetaxableprofitsmadebythesecompaniesarecovenantedtotheUniversityandpaidunderGiftAid,totheextentthatthecompanieshavedistributablereserves,whichnegatesthatliability.

16. Cash and Cash EquivalentsCashincludescashinhand,cashatbank,depositsrepayableondemandandoverdrafts.Depositsarerepayableondemandiftheyareinpracticeavailablewithin24hourswithoutpenalty.

Cashequivalentsareshort-term,highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashwithinsignificantriskofchangeinvalue.TheseincludetermdepositsandotherinstrumentsheldaspartoftheUniversity’streasurymanagementactivities.

CashandcashequivalentscontainssumsrelatingtoendowmentreserveswhichtheUniversityisrestrictedastohowtheyaredisbursed.Note26summarisestheassetsrestrictedintheiruse.

17. Financial InstrumentsAsallowableunderFRS102theUniversityhasadoptedtheoptiontoapplytherecognition,measurementanddisclosurerequirementsofsections11and12ofFRS102.

Financialassetsareassessedforindicatorsofimpairmentateachbalancesheetdate.Ifthereisobjectiveevidenceofimpairment,animpairmentlossisrecognisedintheStatementofComprehensiveIncome.

Forfinancialassetscarriedatamortisedcost,theamountofanimpairmentisthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discountedatthefinancialasset’soriginaleffectiveinterestrate.

Forfinancialassetscarriedatcostlessimpairment,theimpairmentlossisthedifferencebetweentheasset’scarryingamountandthebestestimateoftheamountthatwouldbereceivedfortheassetifitweretobesoldatthereportingdate.


18. Intra-Group TransactionsGainsorlossesonanyintra-grouptransactionsareeliminatedinfull.Amountsinrelationtodebtsandclaimsbetweenundertakingsincludedintheconsolidationarealsoeliminated.BalancesbetweentheUniversityanditsassociatesandjointventuresarenoteliminated;unsettlednormaltradingtransactionsareincludedascurrentassetsorliabilities.Anygainsorlossesareincludedinthecarryingamountofassetsofeitherentity;thepartrelatingtotheUniversity’sshareiseliminated.

19. Public Benefit Concessionary LoansWhereloansaremadeatbelowtheprevailingmarketrateofinterest,notrepayableondemandandmadeforthepurposeoffurtheringtheobjectivesoftheUniversity,theyareclassifiedasconcessionaryloans.

Concessionaryloansareinitiallymeasuredattheamountpaidandadjustedattheperiodendtoreflectanyaccruedincomereceivable.ShouldaloanbejudgedasirrecoverableitiswrittenofftotheStatementofComprehensiveIncomeintheperiodinwhichitbecomesirrecoverable.

20. Accounting for Jointly Controlled Entities, Assets, and OperationsJointly controlled entities

TheUniversityaccountsforitsshareofjointlycontrolledentitiesusingtheequitymethod.

Investmentsinjointlycontrolledentitiesareinitiallyrecognisedatthetransactionprice(includingtransactioncosts)andaresubsequentlyadjustedtoreflecttheGroup’sshareoftheProfitorLossandOtherComprehensiveIncomeoftheJointOperation.

Jointly controlled assets and operations

TheUniversityaccountsforjointlycontrolledassetsandoperationsbaseduponitsshareofcostsincurred,andrecognisesitsshareofliabilitiesincurredpro-rata.IncomeandexpenditureisrecognisedbasedupontheUniversity’sshare.

21. Provisions, contingent liabilities and contingent assetsProvisionsarerecognisedinthefinancialstatementswhen:

a) theUniversityhasapresentobligation(legalorconstructive)asaresultofapastevent;

b) itisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation;and

c) areliableestimatecanbemadeoftheamountoftheobligation.

AcontingentliabilityarisesfromapasteventthatgivestheUniversityapossibleobligationwhoseexistencewillonlybeconfirmedbytheoccurrenceorotherwiseofuncertainfutureeventsnotwhollywithinthecontroloftheUniversity.Contingentliabilitiesalsoariseincircumstanceswhereaprovisionwouldotherwisebemadebuteitheritisnotprobablethatanoutflowofresourceswillberequiredortheamountoftheobligationcannotbemeasuredreliably.

AcontingentassetariseswhereaneventhastakenplacethatgivestheUniversityapossibleassetwhoseexistencewillonlybeconfirmedbytheoccurrenceorotherwiseofuncertainfutureeventsnotwhollywithinthecontroloftheUniversity.Contingentassetsandliabilitiesarenotrecognisedinthebalancesheetbutaredisclosedinthenotes.

22. Legal FormTheUniversityisacivilcorporationestablishedundercommonlaw,whichwasformallyincorporatedbytheActforIncorporationofBothUniversities1571underthenameof‘TheChancellorMastersandScholarsoftheUniversityofOxford’.

TheUniversityisincorporatedintheUnitedKingdom.

Principal Office

UniversityofOxfordUniversityOfficesWellingtonSquareOxfordOX12JD


Accounting Judgements and Estimates

TheUniversitypreparesitsconsolidatedfinancialstatementsinaccordancewithFRS102asissuedbytheFinancialReportingCouncil,theapplicationofwhichoftenrequiresjudgementstobemadebymanagementwhenformulatingtheconsolidatedfinancialpositionandresults.UnderFRS102,managementisrequiredtoadoptthoseaccountingpoliciesmostappropriatetothecircumstancesforthepurposeofpresentingfairlytheGroup’sfinancialposition,financialperformanceandcashflows.Indeterminingandapplyingaccountingpolicies,judgementisoftenrequiredinrespectofitemswherethechoiceofspecificpolicy,accountingestimateorassumptiontobefollowedcouldmateriallyaffectthereportedresultsornetassetpositionoftheUniversity;itmaylaterbedeterminedthatadifferentchoicewouldhavebeenmoreappropriate.

Managementconsidersthatcertainaccountingestimatesandassumptionsrelatingtorevenue,debtors,fixedassetsandprovisionsareitscriticalaccountingestimates.AdiscussionofthesecriticalaccountingestimatesisprovidedbelowandshouldbereadinconjunctionwiththedisclosureoftheGroup’ssignificantaccountingpoliciesprovidedonpage34–41.Managementhasdiscusseditscriticalaccountingestimatesandassociateddisclosureswiththeexternalauditors,itsFinanceCommitteeanditsAuditandScrutinyCommittee.

AprovisionhasbeenmadefortheexpectedcoststoremovetheasbestosandforthedemolitionofthecurrentTinbergenbuildingandadditionallyfortherelatedcoststoprovidealternativeservicesindifferentbuildingsforstudentsandstaff.

Investmentvaluationsareshownatthelatestfundingvaluationprovidedbythirdparties.

Spinoutvaluationsareshownatthelatestfundingvaluationbutarereviewedforanypotentialimpairment.

ResearchrevenuefromtheResearchCouncilsandEuropeanCommissionisrecognisedinlinewithexpenditurewhichinthejudgmentoftheUniversitycreatestherighttoreceivefundingfromthesebodies.Researchrevenuefromcharitiesandindustryisrecognisedinmostcasesonareimbursementbasisascostsareincurredwhichitisjudgedcreatetherighttoreimbursement.

ResearchandDevelopmentExpenditurecreditsarecreditedtoincomeonthebasisoftheestimatedamountofcreditbelievedtobereceivable.Thecreditinrespectof2014/5wasoutstandingatyearendbuthasbeenpaidinfullpostyearend.Thereisanincrementalclaimfor2015/16of£5.5m(netoftax)whichhasbeencalculatedbutisstillsubjecttoHMRCreview.

Pensionsincludekeyassumptionsondiscountrates,salaryinflationandstaffnumbersinthefuture.SensitivityanalysishasbeenprovidedinthePensionnoteonchangesintheseassumptions.ThecostsoftheUSSandOSPSdeficitrecoveryplanshavebeenestimatedbasedonamodeldevisedbyUSSandtheBritishUniversitiesFinanceDirectorsGroup.Themodelusestheadditionalcostsincludedinthedeficitrecoveryplan,adjustsaccordinglytomanagementjudgementofestimatedchangesinstaffinglevelsandpayincreases,andisdiscountedbasedoncorporatebondlevelshavingamaturityofasimilarlengthtotherecoveryplan.TheschemeactuaryreviewsthefundingoftheUSSeveryyearandundertakesaformalactuarialvaluationeverythreeyears,atwhichtimethedeficitrecoveryplanmaybeamended.

Depreciationiscalculatedonastraight-linebasisovertheestimatedusefuleconomiclivesoftherelatedassets.

Investmentpropertiesarerevaluedtriennially.ThelatestrevaluationwasJuly2016.

Theholidaypayprovisioniscalculatedusingasampleofdepartments.

Aprovisionforbadanddoubtfuldebtsiscalculatedusingaformulabasedontheageoftheoverduedebt.Theformulaisappliedconsistentlyeachyearbutnecessarilyrequiresadegreeofestimation.Specificprovisionismadeforindividualdebtswhererecoveryisbelievedtobeuncertainandthisrequiresanelementofjudgement.

JUDGEMENTS NOTE

Incomerecognition 1–6DepreciationofProperty,PlantandEquipment 13Investmentvaluations15,26Spinoutvaluations15Valuationofinvestmentproperties 15,26Indexationofpermanentendowmentcapital 26ESTIMATION UNCERTAINTIES AND ASSUMPTIONS

NOTE

ProvisionforirrecoverablereceivablesCalculationofshort-termemployeebenefitaccrualCalculationoftheprovisionforfundingofpensiondeficitsCalculationonTinbergenbuildingprovision

1772425


Notes to the Financial Statements

1. Tuition fees and education contracts

2. Funding body grants


£’m2015/16

£’m2016/17

£’m2015/16

£’mFull-time studentsHomeEUOverseasandotherfees

98.518.694.0

90.315.894.2

98.518.694.0

90.315.894.2

Part-time studentsHomeEUOverseasandotherfees

6.61.4

15.8

6.60.8

11.1

6.61.4

15.8

6.60.8

11.1Other fees and education contractsProfessionalandnon-matriculatedcoursesExaminationandotherfeesResearchtrainingsupportgrants

30.90.6

40.8

36.41.2

37.1

19.00.6

40.8

20.11.2

37.1307.2 293.5 295.3 277.2

TheHEFCErecurrentgrantistheannualfundingforthepurposesofTeaching,Research,andKnowledgeExchange.Eachgrantrelatestoaspecificacademicyearandeachgrantisrecognisedinfullintheyeartowhichitrelates.

TheMuseums,GalleriesandCollectionsFundisprovidedbyHEFCEtosupportmuseumsandgalleriesintheHEsectorthathaveresearchsignificancebeyondtheirhomeinstitution.WithintheUniversitygrant-fundingisprovidedtosupporttheAshmolean,PittRiversMuseum,MuseumofNaturalHistoryandtheMuseumoftheHistoryofScience.Grantsareawardedonanacademicyearbasistofundspecificoperationsofeachofthemuseums;incomeisrecognisedinfullintheacademicyearinwhichtheoperationshavebeenperformed.

TheHigherEducationInnovationFundisprovidedbyHEFCEtosupportKnowledgeExchangebetweenmembersoftheHESectorandthewidercommunity.HEIFfundingisallottedbyHEFCEonanannualbasisandbecomesreceivableoncetheUniversityhasprovidedanapprovedKnowledgeExchangestrategyforthefunding.Incomeisrecognisedonanannualbasisoncethestrategyhasbeenapproved.

HEFCEcapitalgrantsarethosegrantsfromHEFCEprovidedforthepurposesofpurchasingorbuildingofcapitalassets;theygenerallydonotspecifyparticularassetsandincomeisrecognisedinfulloncetheUniversityhasarighttoreceivethegrant.


£’m2015/16

£’m2016/17

£’m2015/16

£’mRecurrent grantsHEFCE 157.2 158.1 157.2 158.1Specific grantsMuseums,galleriesandcollectionsfundHighereducationinnovationfundScholarshipHEFCEcapitalgrantsOther

3.42.9

-30.9

0.2

3.43.80.4

26.50.3

3.42.9

-30.9

0.2

3.43.80.4

26.50.3

194.6 192.5 194.6 192.5


3. Research grants and contracts

Researchgrantsandcontractincomeincludes£20.4m(2016:£22m)inrespectofcapitalfunding


£’m2015/16

£’m2016/17

£’m2015/16

£’mUK fundersResearchcouncilsUKgovernmentandhealthauthoritiesUKcharitiesUKindustryandcommerce

146.468.9

155.822.9

152.958.1

147.019.9

146.468.9

155.822.9

152.958.1

147.019.9

EU fundersEuropeancommissionandotherEUgovernmentbodiesEU-basedcharitiesEU-basedindustryandcommerce

66.3

1.810.2

64.3

1.18.0

66.3

1.810.2

64.3

1.18.0

Non-EU fundersOthergovernmentOthercharitiesOtherindustryandcommerceRDEC

23.027.235.8

6.6

21.822.841.8(0.3)

23.027.229.9

6.6

21.822.838.7(0.3)

564.9 537.4 559.0 534.3

4. Other income

CapitalGrantincomeisexternalfundingotherthanresearchorfromHEFCEforassetscapitalisedinyearandincludesfundingfortheLiKaShingCentreforHealthInformationandDiscoveryof£12.3m,£3.9fortheBegbrokeInnovationAccelerator,and£2.9mforRadiopharmacyrefurbishment.


£’m2015/16

£’m2016/17

£’m2015/16

£’mResidences,cateringandconferencesOtherservicesrenderedNationalHealthServiceForeignExchangegainRoyaltyincomeReceiptsfromeducationalactivitiesRentalIncomefromoperatingleasesTransferfromthePressOtherincomeCapitalgrants

5.054.815.6

7.36.6

13.214.841.039.529.9

4.749.018.0

-3.2

12.911.845.838.429.2

4.67.7

15.67.21.7

13.214.741.051.929.9

4.46.5

18.0-

2.012.911.845.837.429.2

227.7 213.0 187.5 168.0

Consolidated UniversityLand and buildings 2016/17

£’m2015/16

£’m2016/17

£’m2015/16

£’mReceivableduringtheyear 14.8 11.8 14.8 11.8Futureminimumleasereceivablesdue:Notlaterthan1yearLaterthan1yearandnotlaterthan5yearsLaterthan5years

12.87.8

15.0

8.87.2

25.4

12.87.8

15.0

8.87.2

25.4Total future lease receivables due 35.6 41.4 35.6 41.4

Total rentals receivable under operating leases:


5. Investment income


£’m2015/16

£’m2016/17

£’m2015/16

£’mProfitondisposalofspinoutcompanyinvestmentsOtherincomeandinterestfrominvestments

4.59.9

2.36.5

4.59.8

2.35.52

14.4 8.8 14.3 7.8

Profitondisposalofspinoutsincludes£0.8m(2016:£0.8m)releaseofdeferredincomefromTechnikosLLPfortherighttopurchaseapercentageshareofsharecapitalinspinoutcompaniesformedbytheInstituteofBiomedicalEngineering(seenote22)and£1.7m(2016:£1.1m)releaseofdeferredincomefromOxfordSciencesInnovationplcfortherighttopurchaseapercentageshareofsharecapitalinspinoutcompaniesformedbytheUniversity(seenote32)andarealisedgainondisposalofOxfordGeneTechnologyof£2.2m(2016:£nil).Thisisoffsetbyimpairmentchargesrelatedtootherspinoutcompanyinvestments.Profitondisposalofspinoutsalsoincludes£0m(2016:£0.4m)releaseofdeferredincomefromBeesonGregoryMerchantBankersfortherighttopurchaseapercentageshareofsharecapitalinspinoutcompaniesformedbytheDepartmentofChemistry(seenote22).

Investment Gains

Analysis of Gains on Investments


£’m2015/16

£’m2016/17

£’m2015/16

£’mInvestmentsheldintheOxfordFundsSpinoutsInvestmentpropertieshelddirectlyOtherinvestments

181.532.2(1.6)6.0

149.511.117.8

9.6

176.332.2(1.6)6.0

147.611.117.8

9.6218.1 188.0 212.9 186.1

Investmentpropertiesareexternallyrevaluedtriennially.Thelastfullvaluationwasconductedin2015/16.


£’m2015/16

£’m2016/17

£’m2015/16

£’mDonations DonationswithrestrictionsDonationswithoutrestrictionsEndowmentsNewendowments

Donation of heritage assets

29.515.2

43.7

88.4

3.2

18.617.9

37.9

74.4

2.2

29.518.3

43.7

91.5

3.2

18.614.5

37.9

71.0

2.2

91.6 76.6 94.7 73.2

Detailsofmaterialheritageassetsdonatedintheyearcanbefoundinnote14.

6. Donations and endowments


7. Staff costs


£’m2015/16

£’m2016/17

£’m2015/16

£’mStaff costs: WagesandsalariesSocialsecuritycostsPensioncostsaspaid(note33)

567.756.690.5

547.648.584.2

552.254.889.2

532.846.582.2

Pensionprovision(note33)

714.8(6.5)

680.311.0

696.3(9.3)

661.510.6

708.3 691.3 687.0 672.1

2016/17FTE

2015/16FTE

Average staff numbers by major category: Academic Research Teaching&researchsupport LibraryandmuseumServices CentralSupportservices Technical&crafts Ancillary

1,7664,6392,760

5031,655

588496

1,7474,6342,608

4971,527

604503

Subsidiaries

12,407

314

12,120

258Average number of full-time equivalent staff 12,721 12,378

The emoluments of the Vice-Chancellors who served during the year were:

2016/17£’000

2015/16£’000

Current Vice-ChancellorSalaryBenefitsFormer Vice-ChancellorSalaryBenefits

35412

--

204-

15516

366 375Current Vice-ChancellorPensioncontributionsFormer Vice-ChancellorPensioncontributions

64

-

35

23430 433

TheVice-ChancellorsmadepensioncontributionsthroughtheSalaryExchangeSchemewhichisavailabletoallstaffwhoaremembersoftheUniversitiesSuperannuationScheme(USS)andOxfordStaffPensionScheme(OSPS).


Trustees

NotrusteehasreceivedanyremunerationorwaivedpaymentsfromtheUniversityduringtheyearinrespectoftheirservicesastrustees(2016:Nil).Thetotalexpensespaidtooronbehalfofatrusteewere£1,262(2016:£1,140).ThisrepresentstravelandotherexpensesincurredinattendingCouncilandrelatedmeetings.

Salary Banding

ThenumbersofmembersofstaffthroughouttheUniversitywhoseemoluments(excludingemployer

pensioncontributionsandcompensationforlossofofficebutincludingpaymentsunderearlyretirementschemes)exceeded£100karesetoutinthetablebelow.

ThesalariesreflectedintheserangesincludepaymentsmadeonbehalfoftheNHSinrespectofitscontractualobligationstoUniversitystaffunderseparateNHScontractsofemployment.ThesepaymentsareexcludedfromtheUniversity’sIncomeandExpenditureaccount.Ofthe485staffearninginexcessof£100k,164includesuchpaymentsonbehalfoftheNHS.Alsoincludedareroyaltypaymentstomembersofstaffviathepayrollandprofessorialmeritawardstonon-clinicalstaff.

Clinical Non-clinical Total2016/17

No.2015/16

No.2016/17

No.2015/16

No.2016/17

No.2015/16

No.£100,000to£109,999£110,000to£119,999£120,000to£129,999£130,000to£139,999£140,000to£149,999£150,000to£159,999£160,000to£169,999£170,000to£179,999£180,000to£189,999£190,000to£199,999£200,000to£209,999£210,000to£219,999£220,000to£229,999£230,000to£239,999£240,000to£249,999£250,000to£259,999£260,000to£269,999£270,000to£279,999£280,000to£289,999£290,000to£299,999£300,000to£309,999£310,000to£319,999£330,000to£339,999£350,000to£359,999£370,000to£379,999£450,000to£459,999£700,000to£709,999£880,000to£889,000

32171416131213

76

115421432-1---1-----

25161714

915

911

5954333-11--1-1-----

865740252320141010

58433311-1111-1-111

85454423251614

88665312111----1-21-1

11874544136322717161613

854743-211111-111

11061613734312319131511

9645122--1-2-21-1

164 152 321 299 485 451

2016/17£’000

2015/16£’000

Compensation for loss of office payable to higher paid staff:Compensationpayable – 376

TheseverancepaymentswerepaidincashfundedfromgeneralincomeandexpenditurereservesandwereapprovedbytheUniversity’sRemunerationCommittee.


Key management personnel

Keymanagementpersonnelarethosepersonshavingauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheUniversity.Thisincludescompensationpaidtokeymanagementpersonneldefinedas:theRegistrar,Pro-Vice-Chancellorswithportfolio,HeadsofDivisionandtheDirectorofFinance.TheVice-Chancellorisexcludedfromthisfigure.

2016/17£’000

2015/16£’000

Keymanagementpersonnel-totalremunerationNumberofstaff

2,48812.5

2,60412

Key management personnel - Average Remuneration 199 217

8. Interest and other finance costs


£’m2015/16

£’m2016/17

£’m2015/16

£’mInterestonloans Netchargeonpensionscheme

6.63.3

7.55.3

6.63.3

7.45.3

9.9 12.8 9.9 12.7

9. Operating expenditure

Depreciation(£102.6m),Operatingexpenditure(£576.2m)andinterestpayable£9.9marecombinedinthenon-stafffiguresof£688.7m.In2016/17thereisaforeignexchangegainwhichispartof“OtherIncome”innote4.Theincreaseinadminstrationexpensesislargelyduetoincreaseddepreciationcharges.

2016/17Staff

£’mNon-Staff

£’m

2016/17Total£’m

2015/16Total£’m

AcademicdepartmentsResearchgrantsandcontractsAcademicservicesResidence,cateringandconferencesBursariesandscholarshipsPremisesAdministrationPaymentstocollegesOtherexpensesTinbergenbuildingclosureForeignexchangeloss

284.9274.0

35.20.5

-20.674.6

-6.5

--

130.5200.5

22.20.3

60.966.142.053.929.327.5

-

415.4474.5

57.40.8

60.986.7

116.653.935.827.5

-

387.2452.0

55.50.8

56.8101.8110.1

54.526.9

-7.3

TOTAL University

SubsidiarycompaniesMovementinpensionsprovisionInterestandotherfinancecosts

696.3

18.5(6.5)

-

633.2

45.6-

9.9

1,329.5

64.2(6.5)9.9

1,252.9

59.811.012.8

TOTAL Consolidated 708.3 688.7 1,397.0 1,336.5


Other operating expenses include:

Consolidated2016/17

£’0002015/16

£’000Remunerationpaidtoauditorsduringtheyearwasinrespectofthefollowingservices: AuditoftheconsolidatedUniversity’sannualfinancialstatementsAuditofthesubsidiariesannualfinancialstatements

175118

170125

Total audit fees 293 295ServicesrelatingtotaxationResearchgrantcertificationservicesAssurance/VATadvice(OUem)Othernon-auditservices

50214

30-

96251

2313

Total non-audit fees 294 383Total fees to auditors 587 678

Auditors’remunerationinrespectofservicesprovidedtothePressisdisclosedintheseparateauditedaccountsofthePress’sTradingOperationsandPropertyandReserveFund.

10. Taxation


£’m2015/16

£’m2016/17

£’m2015/16

£’mCurrenttaxUKcorporationtax

1.6

0.4

1.3

-

Taxation charge for the year 1.6 0.4 1.3 –

ThemajorityofthetaxchargerelatestoanadditionalRDECclaimmadein2016/17butrelatingto2014/15.Theremainderofthetaxrelatestotaxationofprofitsinsubsidariesnotcoveredbygiftaid.

Consolidated University

Factors affecting the tax charge2016/17

£’m2015/16

£’m2016/17

£’m2015/16

£’mTotalComprehensiveIncomeSurplusonordinaryactivitiesmultipliedbythestandardrateofcorporationtaxof19.67%(2016:20%)Lesstaxdueonsurplusfallingwithincharitableexemption

219.7

43.2

(41.6)

172.9

34.6

(34.2)

227.0

44.6

(43.3)

169.0

32.6

(32.6)Taxation charge for the year 1.6 0.4 1.3 –


11. Oxford University Press (‘The Press’) Asexplainedintheaccountingpolicies,thesefinancialstatementsdonotincludetheaccountsofthePress,whichisadepartmentoftheUniversity.Inadditiontothetransactionsdisclosedundernote4(Otherincome)thePressprovidedtherestoftheUniversityduringtheyearwithgoodsandservicesworthapproximately£1m(2016:£0.9m)whichwerefreeofcharge.ThePressleasedpremisesfromtheUniversityduringtheyearfor

atotalof£197k(2016:£248k),theUniversityleasedpremisesfromthePressduringtheyearforatotalof£120k(2016:£150k).At31July2017thePressowedtherestoftheUniversity£nil(2016:£0.1m).TherewerenomaterialamountsduetothePressbytherestoftheUniversityat31July2017or31July2016.AnextractofthePressaccountsfortheyearended31March2017isincludedatpages73-78.

The table below summarises the main transactions with the Press:

2016/17£’m

2015/16£’m

Annualtransfer Benefitsinkind-(Universityyear)

40.01.0

44.90.9

41.0 45.8 LeasepaymentsreceivedfromPress LeasepaymentspaidtoPress

0.2(0.1)

0.2(0.2)

Consolidated Goodwill Other IntangiblesNegative goodwill

£’m

Software licences

£’mTOTAL

£’mAs at 31 July 2016 (0.2) 1.6 1.4AdditionsAmortisation

--

-(0.2)

- (0.2)

As at 31 July 2017 (0.2) 1.4 1.2

12. Intangible assets and goodwill

TheNegativegoodwillaroseontheacquisitionoftheEdwardJennerInstituteforVaccineResearchon1November2005andtheGrayCancerInstituteon20June2006.

University Other Intangibles Software

licences£’m

TOTAL£’m

As at 31 July 2016 1.6 1.6AdditionsAmortisation

-(0.2)

- (0.2)

As at 31 July 2017 1.4 1.4


13. Property, Plant and Equipment

Consolidated Land and Buildings

Freehold £’m

Leasehold £’m

Equipment & machinery

£’m

Assets under construction

£’mTOTAL

£’mCostAs at 1 August 2016AdditionsCompletedDisposals

1,508.7 10.996.6

-

25.5 -

1.1-

166.8 24.715.7

(25.6)

120.4 103.7

(113.4)-

1,821.4 139.3

-(25.6)

As at 31 July 2017 1,616.2 26.6 181.6 110.7 1,935.1 DepreciationAs at 1 August 2016ChargefortheyearDisposals

421.1 56.2

-

6.2 1.5

-

65.1 44.9

(25.6)

- --

492.4 102.6(25.6)

As at 31 July 2017 477.3 7.7 84.4 - 569.4 Net book value As at 31 July 2017 1,138.9 18.9 97.2 110.7 1,365.7 As at 31 July 2016Leasedassetsincludedabove:Net book valueAs at 31 July 2017As at 31 July 2016

1,087.6

- -

19.3

18.9 19.3

101.7

- -

120.4

- -

1,329.0

18.9 19.3

AllProperty,PlantandEquipmentarestatedathistoriccost.

Landandbuildings(ConsolidatedandUniversity)includes£84.4m(2016:£84.2m)offreeholdlandonwhichnodepreciationischarged.

Includedinthe£56.2mofFreeholdBuildingdepreciationis£6.8mofaccelerateddepreciationrelatingtotheclosureoftheTinbergenbuilding.Followingclosureofthebuilding,allassociatedassetshavebeenwrittenoff.

Thereare‘clawback’provisionswithintheagreementontheRadcliffeObservatoryQuarter(ROQ)sitetotheNHSshouldtheUniversityatsomepointinthefuturedecidetochangethedesignateduseofthesiteanddisposeofpartofitfordevelopment.

Landandbuildings(ConsolidatedandUniversity)includepropertiesfinancedandoccupiedbytheUniversityonNHSsiteswithanetbookvalueof£16.5m(2016:£7.1m).

Equipmentadditionsinclude£4.8m(2016:£10.7m)oflabourcapitalisationrelatingtointernalITresource,whichhasbeenappliedtomajorITprojects.ThelargestspendonsingleprojectswereforIntegratedCommunications£1.5mandStudentSystemsAdmissions£1.3m.

InNovember2000,theUniversityenteredintoaleasingarrangementwiththeSaïdFoundationinrespectoftheSaïdBusinessSchool.InaccordancewithFRS102section2.8ReportingtheSubstanceoverform,astherisksandrewardsofoccupancyvestintheUniversity,thebuildingisincludedinfixedassets.At31July2017thefixedassetsoftheUniversityincludedacostof£62.7m(2016:£62.7m)inrespectofthebuilding.

Expenditureoncertainbuildingswasfinancedinpartfrompublicfunds.IntheeventofdisposaloftherelevantbuildingstheproceedsmayrevertwhollyorinparttoHMTreasury.

Equipmentistreatedashavingbeendisposedofintheyearafterthatinwhichitsnetbookvaluebecomeszero.


14. Heritage assets

TheUniversityofOxfordcollectionsrelatetomuseums,libraries,andothercollections.TheUniversityobjectivesaretomakethecollectionsafocusforresearch,teaching,andcollection-basedscholarshipwithintheUniversity.Thecollectionsareusedasaresearchresourceforawiderangeofscholarlyusers,afacilityforinteractionbetweentheUniversityandthepublicandanactivecontributortotheregion’sculturaldevelopment.

Heritageassetsacquiredsince1999areheldatcostorvaluationonreceipt.Duetothescaleanduniquenessof

manyoftheheritageassets,itisnotpossibletovaluetheUniversity’sheritageassetsacquiredpriorto1999.Thecostwouldalsobeprohibitive.

Thecostofnewheritageassetacquisitionsin2016/17was£1.6m(2016:£1.3m).ThemainacquisitionwastheWatlingtonHoardforatotalof£1.35m,paidforbyprivatedonations.Disposalsareunlikelyasmostdonationshaveconditionspreventingdisposal,andtherewerenodisposalsin2016/17.Thecostsofdonatedassetsarebasedonvaluationsbyexpertsintherelevantfield.Thefiveyearsummaryforheritageassetdonations/additionsis:

University Land and Buildings

Freehold £’m

Leasehold £’m

Equipment & machinery

£’m

Assets under construction

£’mTOTAL

£’mCostAs at 1 August 2016AdditionsCompletedDisposals

1,505.9 10.896.6

-

25.5 -

1.1-

163.6 24.515.7

(25.2)

120.4 103.8

(113.4)-

1,815.4 139.1

-(25.2)

As at 31 July 2017 1,613.3 26.6 178.6 110.8 1,929.3 DepreciationAs at 1 August 2016ChargefortheyearDisposals

419.1 56.0

-

6.2 1.5

-

62.5 44.5

(25.2)

- --

487.8 102.0(25.2)

As at 31 July 2017 475.1 7.7 81.8 - 564.6 Net book value As at 31 July 2017 1,138.2 18.9 96.8 110.8 1,364.7 As at 31 July 2016Leasedassetsincludedabove:Net book valueAs at 31 July 2017As at 31 July 2016

1,086.8

- -

19.3

18.9 19.3

101.1

- -

120.4

- -

1,327.6

18.9 19.3

2012/13 £’m

2013/14£’m

2014/15 £’m

2015/16 £’m

2016/17£’m

Brought forward AcquisitionspurchasedwithspecificdonationsAcquisitionspurchasedwithUniversityfunds

25.3

10.5

-

64.3

1.1

0.3

66.6

0.3

0.1

77.0

-

1.3

80.5

1.5

0.1 Total cost of acquisitions purchased Value of acquisitions by donation

10.5

28.5

1.4

0.9

0.4

10.0

1.3

2.2

1.6

3.2 Carried forward 64.3 66.6 77.0 80.5 85.3

Heritageassetsof£3.2mweredonatedintheyear(2016:£2.2m).Thelargestdonationwas£2mfortheWilliamDobsonPortrait.ThesedonationsareshownasaseparateitemintheStatementofComprehensiveIncome.

ExpenditurerequiredtopreserveheritageassetsisrecognisedintheStatementofComprehensiveIncomewhenincurred.


15. Non-current investments

Theinvestmentmarketvaluegainisshowninnote5.

Consolidated University2017

£’m2016

£’m2017

£’m2016

£’mInvestments stated at market value:SpinoutcompaniesInvestmentpropertyGlobalandprivateequitiesPublicequityCreditOtherassetsPledgesThirdpartymanagedShort-termBondsParticipatinginterestinAssociatesInvestments stated at cost:Subsidiaryandassociatedundertakings

114.3203.3720.8

1,280.0228.5

0.28.5

110.6492.9

-

-

81.5218.8698.6984.1209.1104.3

9.097.1

446.30.3

-

114.3203.3717.7

1,280.0228.5

0.28.5

87.1492.9

-

14.9

81.5218.8693.3984.1209.1104.3

9.074.2

446.3-

16.9

Less:amountsattributabletooutsidebodies3,159.1 (1,000.6)

2,849.1 (791.3)

3,147.4 (1,052.5)

2,837.5 (832.3)

Total at end of year 2,158.5 2,057.8 2,094.9 2,005.2 Investmentassetsheldaresplitbetweenreservesasfollows:Income&expenditurereserves 1,169.1 1,148.0 1,174.4 1,161.7Endowmentreserves26 989.4 909.8 920.5 843.5

2,158.5 2,057.8 2,094.9 2,005.2 Heldonbehalfofoutsidebodies 1,000.6 791.3 1,052.5 832.3Total at end of year 3,159.1 2,849.1 3,147.4 2,837.5


16. Investment in Subsidiaries and AssociatesSubsidiaries

Asat31July2017theUniversityexercisedcontrolofthefollowingsubsidiaryundertakings(excludingdormantundertakings):

AspartoftheMoritz-HeymanendowmenttheUniversityinvestsintheSequoiaHeritagefundthroughSCHFOU,LP.TheUniversityhasamajorityshareofthecapitalandreservesofSCHFOU,LPbuthasnodemonstrablecontrolsoitisnottreatedasasubsidiary,insteaditisrecognisedasaninvestmentasset.

AllsubsidiaryundertakingshavebeenincludedwithintheconsolidatedFinancialStatements.

Allsubsidiaryundertakingsprepareaccountsto31Julyeachyearexceptfor:JennerVaccineFoundationwhichdrawsupitsaccountsto31MarchandOxfordUniversity(Beijing)ScienceandTechnologyCoLtdto31Decembereachyear.

1TheJamesMartinTrustisacharitabletrustincorporatedintheUnitedKingdomwheretheUniversityhasthepowertoappointthemajorityofthetrustees.2OxfordMutualLtdisacompanylimitedbyguarantee.ThemembersofOxfordMutualLimitedaretheUniversity,InstructAcademicServicesLimited,OxfordUniversityInnovationLimited,JennerVaccineFoundation,OxfordLimited,OxfordSaïdBusinessSchoolLimited,OxfordUniversityEndowmentManagementLimited,OxfordUniversityFixedAssetsLimited,OxfordUniversityTradingLimited,TheGrayLaboratoryCancerResearchTrust,andVoltaireFoundationLimite.

3OxfordUniversityInnovation(HongKong)Ltdisawholly-ownedsubsidiaryofOxfordUniversityInnovationLtd.4TheGrayLaboratoryCancerResearchTrustisacompanylimitedbyguarantee.ThesolememberistheUniversity.

Country of incorporation Nature of activity % Interest

InstructAcademicServicesLtd UnitedKingdom Scientificfacilities-sharinginfrastructureservices

100

JamesMartinUKLtd1 UnitedKingdom EndowmentManagement 100OxfordLtd UnitedKingdom Retailandothertradingactivities 100OxfordAdvancedResearchCentresLtd UnitedKingdom Headofficeactivities 100OxfordMutualLtd2 UnitedKingdom Provisionofdiscretionarycover 100OxfordResearchSouthAfricaLtd UnitedKingdom Socialpolicyresearch 100OxfordSaïdBusinessSchoolLtd UnitedKingdom Executiveeducation 100OxfordUniversity(Beijing)Science&TechnologyCo.Ltd

China Clinicalresearch 100

OUCInvestmentsLtd UnitedKingdom Headofficeactivities 100OxfordUniversityDevelopment(NorthAmerica),Inc.

UnitedStatesofAmerica

Officeadministration 100

OxfordUniversityEndowmentManagementLtd

UnitedKingdom Investmentmanagementservices 100

OxfordUniversityFixedAssetsLtd UnitedKingdom Buildingmanagementandutilities 100OxfordUniversityInnovationCentresLtd

UnitedKingdom Innovationtechnologyresearchservices

100

OxfordUniversityInnovationLtd UnitedKingdom Commercialexploitationofintellectualproperty

100

OxfordUniversityInnovation(HongKong)Ltd3

HongKong Commercialexploitationofintellectualproperty

100

OxfordUniversityTradingLtd UnitedKingdom Generaltradingactivities 100TheGrayLaboratoryCancerResearchTrust4

UnitedKingdom Radiobiologyresearch 100

UniversityofOxfordChinaOfficeLtd HongKong Fundraisingandalumnirelations 100VoltaireFoundationLtd UnitedKingdom Publishing 100


Joint venture

TheJennerVaccineFoundationisacharitablecompanylimitedbyguaranteesetupforthepurposeofresearchingnovelhumanandanimalvaccines.TheUniversityhastherighttoappointhalfofthedirectors,withtheotherhalfappointedbythePirbrightInstitute,andtheFoundationisaccountedforasajointventureusingtheequitymethod

baseduponitsFinancialStatementspreparedto31March2017.

Duringthecourseof2016/17,theUniversityacquireda50%stakeinARCHKenya.ThisisacharitablecompanylimitedbyguaranteesetuptopromoteresearchondiseasesinAfricaandinparticularKenya.

University holdings in subsidiaries £’mCostAsat31July2016CapitalreductionAddition

16.9(2.0)

-As at 31 July 2017 14.9

ARCH Kenya Jenner Vaccine FoundationYear ended

31 July 2017

£’m

Year ended 31 July

2016£’m

Year ended 31 March

2017£’m

Year ended 31 March

2016£’m

Share of net assets at start of yearIncome Statement Incomingresourcesfortheyearto31July Surplus/(deficit)fortheyear

-1.9

-

--

0.8-

(0.2)

0.9-

(0.1)Share of net assets at end of year 1.9 - 0.6 0.8


4OxfordUniversityInnovation(HongKong)LimitedhasenteredintoajointventurewiththeChangzhougovernmentinChina. 5IsisInnovation(HongKong)LimitedhasestablishedaSino-foreignjointventureinpartnershipwiththeSuzhoucitygovernmentandOxlinkInvestment

ConsultingCo.Ltd(Oxlink).OxlinkisacompanyregisteredinPRC.6IsisInnovation(HongKong)LimitedhasestablishedaSino-foreignjointventureinpartnershipwithShenzhenCityJinyuchengScience&TechnologyCo.

Ltd(Jinyucheng),andShenzhenCityGuochuangLianheScience&TechnologyInvestmentCo.Ltd(Guochuang).JinyuchengandGuochuangarecompaniesregisteredinPRC.

Associates

Asat31July2017theUniversityexertedsignificantinfluencebutnotcontrolorjointcontroloverthefollowingassociatedundertakings(excludinganydormantundertakings):

Country of incorporation

Nature of activity % Interest

DesignerCarbonMaterialsLtd UnitedKingdom Commercialexploitationofintellectualproperty

50

IsisChangzhouInternationalTechnologyTransferCentreCo.Ltd4

China Technologytransfer 40

OxfordVacmedixUKLtd UnitedKingdom Commercialexploitationofintellectualproperty

34

SmithInstitute(limitedbyguarantee) UnitedKingdom Knowledgetransfer 33OxfordAncestorsLtd UnitedKingdom Commercialexploitationofintellectual

property32

ReoxLtd UnitedKingdom Commercialexploitationofintellectualproperty

31

SuzhouIsisInternationalTechnologyTransferCo.Ltd5


OxfordRiskResearchandAnalysisLtd UnitedKingdom Commercialexploitationofintellectualproperty

30

OxfordElectromagneticSolutionsLtd UnitedKingdom Commercialexploitationofintellectualproperty

28

TdeltaSLtd UnitedKingdom Commercialexploitationofintellectualproperty

28

OxtexLtd UnitedKingdom Commercialexploitationofintellectualproperty

27

ShenzhenZhongjinInternationalTechnologyTransferCenterLtd6


KeplerEnergyLtd UnitedKingdom Commercialexploitationofintellectualproperty

23

MinervationLtd UnitedKingdom Commercialexploitationofintellectualproperty

22

NightstaRxLtd UnitedKingdom Commercialexploitationofintellectualproperty

21

AuroxLtd UnitedKingdom Commercialexploitationofintellectualproperty

20

CelleronTherapeuticsLtd UnitedKingdom Commercialexploitationofintellectualproperty

20

MindFoundryLtd UnitedKingdom Commercialexploitationofintellectualproperty

20

OxceptLtd UnitedKingdom Commercialexploitationofintellectualproperty

20

OxfordMultispectralLtd UnitedKingdom Commercialexploitationofintellectualproperty

20

Theassociatedundertakingsprepareaccountstovariousyear-ends.


17. Trade and other receivables falling due within one year

Associate valuation £’mShare of net assets of associate undertakings as at 31 July 2016 Shareofsurplus/(deficit)ofassociateundertakingsfortheyear2016/17

0.4-

Share of net assets of associate undertakings as at 31 July 2017 0.4

Consolidated University 2017

£’m2016

£’m2017

£’m2016

£’mResearchgrantsreceivableResearchandDevelopmentExpenditurecreditPrepaymentsandaccruedincomeOthertradereceivablesOtherreceivablesAmountsduefromsubsidiaries

112.034.220.651.514.4

-

115.630.418.248.511.8

-

112.734.217.940.914.512.8

115.830.415.437.416.911.2

232.7 224.5 233.0 227.1

18. Receivables amounts falling due after more than one year


£’m2016

£’m2017

£’m2016

£’mOtherreceivables 5.9 7.2 5.9 7.2 5.9 7.2 5.9 7.2

Otherreceivablesincludesloanstostaffforhousinginconjunctionwithrecruitmentandendowmentsreceivableonpaymentplansovermorethanoneyear.

19. Current investments


£’m2016

£’m2017

£’m2016

£’mAsat1August2016Additions

51.158.4

65.2(14.1)

49.957.6

63.0(13.1)

109.5 51.1 107.5 49.9

20. Cash and cash equivalents

Consolidated

At 1st August2016

£’m

Cash Flows

£’m

At 31st July2017

£’mCashandcashequivalentsCash&cashequivalentsheldinOxfordFundsInvestmentassetscash

150.225.641.3

37.546.5

(13.6)

187.772.127.7

217.1 70.4 287.5

University £’m £’m £’m

CashandcashequivalentsCash&cashequivalentsheldinOxfordFundsInvestmentassetscash

116.225.641.3

71.646.5

(28.7)

187.872.112.6

183.1 89.4 272.5

Country of incorporation

Nature of activity % Interest

DesignerCarbonMaterialsLtd UnitedKingdom Commercialexploitationofintellectualproperty

50

IsisChangzhouInternationalTechnologyTransferCentreCo.Ltd4


OxfordVacmedixUKLtd UnitedKingdom Commercialexploitationofintellectualproperty

34

SmithInstitute(limitedbyguarantee) UnitedKingdom Knowledgetransfer 33OxfordAncestorsLtd UnitedKingdom Commercialexploitationofintellectual

property32

ReoxLtd UnitedKingdom Commercialexploitationofintellectualproperty

31

SuzhouIsisInternationalTechnologyTransferCo.Ltd5


OxfordRiskResearchandAnalysisLtd UnitedKingdom Commercialexploitationofintellectualproperty

30

OxfordElectromagneticSolutionsLtd UnitedKingdom Commercialexploitationofintellectualproperty

28

TdeltaSLtd UnitedKingdom Commercialexploitationofintellectualproperty

28

OxtexLtd UnitedKingdom Commercialexploitationofintellectualproperty

27

ShenzhenZhongjinInternationalTechnologyTransferCenterLtd6


KeplerEnergyLtd UnitedKingdom Commercialexploitationofintellectualproperty

23

MinervationLtd UnitedKingdom Commercialexploitationofintellectualproperty

22

NightstaRxLtd UnitedKingdom Commercialexploitationofintellectualproperty

21

AuroxLtd UnitedKingdom Commercialexploitationofintellectualproperty

20

CelleronTherapeuticsLtd UnitedKingdom Commercialexploitationofintellectualproperty

20

MindFoundryLtd UnitedKingdom Commercialexploitationofintellectualproperty

20

OxceptLtd UnitedKingdom Commercialexploitationofintellectualproperty

20

OxfordMultispectralLtd UnitedKingdom Commercialexploitationofintellectualproperty

20


21. Creditors: Amounts falling due within one year


£’m2016

£’m2017

£’m2016

£’mResearchgrantscreditorsAccrualsanddeferredincomeCapitalgrantswithperformanceconditionsUnsecuredbankloans22SocialsecurityandothertaxationpayableTradepayablesAmountsduetosubsidiaries

281.8129.1

26.92.6

27.268.3

-

238.6105.7

60.62.4

26.259.6

-

281.8112.9

26.92.6

27.269.2

4.6

238.690.060.6

2.426.260.6

3.2 535.9 493.1 525.2 481.6

22. Creditors: Amounts falling due after more than one year


£’m2016

£’m2017

£’m2016

£’mOxfordSciencesInnovationplcTechnikosGranttoTuringInstituteBankloansLoantoBlavatnikSchoolofGovernment

24.13.32.0

227.73.0

16.44.13.0

230.33.0

24.13.32.0

227.73.0

16.44.13.0

230.33.0

260.1 256.8 260.1 256.8

Analysis of unsecured bank loans:DuebetweenoneandtwoyearsDuebetweentwoandfiveyearsDueinfiveyearsormore

2.714.4

210.6

2.611.2

216.5

2.714.4

210.6

2.611.2

216.5227.7 230.3 227.7 230.3

Bank LoansLoan 1

£’mLoan 2

£’mLoan 3

£’mTotal£’m

AmountborrowedAmountoutstandingat31July2017InterestrateFinalrepaymentdate

25.05.3

5.13%April 2019

25.025.0

5.07%June 2047

200.0200.02.55%

June 2045

250.0230.3

--

AmountduewithinoneyearAmountduebetweenoneandtwoyearsAmountduebetweentwoandfiveyearsAmountdueafterfiveyears

2.62.7

--

---

25.0

--

14.4185.6

2.62.7

14.4210.6

5.3 25.0 200.0 230.3


During2007,theUniversityenteredintoanagreementwithTechnikosLLPtofundtheInstituteofBiomedicalEngineeringovera15-yearperiodfollowingcompletionofanewbuilding.Thebuildingwascompletedon1October2007.Cashof£12mhadbeenreceivedfromTechnikosbyJuly2010.Thetotalbalancethathadnotbeensetagainstcostsat31July2017was£3.3minCreditorsoveroneyearand£0.8minCreditors:withinoneyear.

TheUniversityenteredintoanagreementwithOxfordSciencesInnovationplc(OSI)in2015/16.Inreturnfor

50%ofitsstakeineachcompanyspunoutfromMedicalScienceandMathematical,PhysicalandLifeSciencesoveraperiodof15years,theUniversityreceiveda5%non-dilutablestakeinOSI.Thisstakewasinitiallyvaluedat£17.5mbutanadditionalfundraisinghastakenplacein2016/17of£8.2m.TheinvestmentistreatedasdeferredincomeintheBalanceSheetandisbeingreleasedtotheStatementofComprehensiveIncomeoverthe15yearperiodoftheagreement.Theamountduetobereleasedin2017/18isincludedinCreditors:withinoneyear,withtheremainingbalanceincludedinCreditorsoveroneyear.

Consolidated 2017£’m

2016£’m

Financial Assets Measured at fair value through the profit or loss Global&privateequities,publicequity,spin-outcompanies 15 Measured at undiscounted amount receivable Tradeandotherreceivables 17 Equity instruments measured at cost less impairment Currentassetunlistedinvestments 19

2,115.1

232.7

109.5

1,764.2

224.5

51.1 2,457.3 2,039.8

Financial liabilities Measured at amortised cost Loanspayable 21,22 Measured at undiscounted amount payable Tradeandotherpayables 21

230.3

68.3

232.7

59.6298.6 292.3

Derivative Financial Instruments

Derivativesthataredesignatedandeffectiveashedginginstrumentscarriedatfairvalue.

Foreign Currency Risk

RiskanalysisisanintegralpartofUniversity’sinvestmentdecisionmakingandportfoliomanagement.Geographicalandforeigncurrentexposuresandtheliquidityoftheunderlyingportfolioareconsistentlyevaluated.Anin-houseperformanceandrisksystemhasbeendevelopedtoprovidetheabilitytoreviewTheOxfordFunds’performance,understandtherisksandevaluatethemonareal-timebasis.

ForwardcontractsareusedbytheOxfordEndowmentFundtohedgeexposuretoforeignexchangerisk.ThesecontractsareusedashedginginstrumentstoensurethatthesterlingvalueofinvestmentsarewithinarangedecidedbytheInvestmentCommitteebetween40%and70%oftheassetsheldintheOxfordEndowmentFund.

23. Financial instrumentsThecarryingvaluesoftheGroupandtheUniversity’sfinancialassetsandliabilitiesaresummarisedbythecategoriesbelow:


Suchcontractsareinitiallyrecognisedatfairvalueonthedateonwhichthecontractisenteredintoandaresubsequentlyre-measuredtofairvalue.Forwardcurrencycontractsarecarriedasfinancialassetswhenthefairvalueispositiveandasfinancialliabilitieswhenthefairvalueisnegative.Anygainsorlossesarisingfromchangesinfairvaluearerecognisedintheincomeandexpenditureaccount.Thefairvalueofforwardcurrencycontractsiscalculatedbyreferencetocurrentforwardexchangeratesforcontractswithsimilarmaturityprofiles.

Thenominalvalueofcurrenthedgingcontractsinplaceat31July2017was£417.2mandthecontracts,when

markedtomarket,showedanunrealisedgainof£7.7m.

TheUniversityhadoutstandingforwardcontractstosellUSDollarsrelatingtoexpectedUSDollarreceiptsfromresearchfunders.Theseforwardcontractsgivegreatercertaintyastoexpectedresearchincome.ItalsohadswapcontractstohedgeitsexposuretoexchangeratefluctuationsonEurodenominatedcashbalancesheld.

Thenominalvalueofcurrenthedgingcontractsinplaceat31July2017was£53.6mandthecontractswhenmarkedtomarketshowedanunrealisedgainof£1.3m.In2016thevaluewas£25.8mandthecontracts,whenmarkedtomarket,showedanunrealisedgainof£0.6m.

ConsolidatedUSS£’m

OSPS£’m

Other£’m

Total£’m

At 1 August 2016 147.4 48.6 1.4 197.4Utilisedinyear(Release)/AdditionsinyearInterestrelease

-(7.8)2.6

-1.30.7

(0.1)--

(0.1)(6.5)3.3

At 31 July 2017 142.2 50.6 1.3 194.1

UniversityUSS£’m

OSPS£’m

Other£’m

Total£’m

At 1 August 2016 146.4 48.4 1.4 196.2 Utilisedinyear(Release)/additionsinyearInterestrelease

-(10.5)

2.6

-1.20.7

(0.1)-

-

(0.1)(9.3)3.3

At 31 July 2017 138.5 50.3 1.3 190.1

24. Pension Scheme Provisions

TheUniversityisamemberoftheUniversitiesSuperannuationScheme(USS)andOxfordStaffPensionScheme(OSPS)multi-employerpensionschemes,bothofwhichareindeficit.TheUniversityhasrecognisedaprovisionforitscommitmentsundertheagreeddeficitreductionplansforeachschemeincalculatingtheseprovisionstheUniversityhasestimatedthatsalaryexpensewillincreaseat2.4%for2017/18and2.0%p.a.forfutureyearsforOSPS

and3%p.aforUSSandtheliabilityisdiscountedata15yearcorporatebondrateof1.9%(2016:1.4%).Asensitivityanalysistochangesinsalaryanddiscountratechangesisshowninnote33.

TheUniversityhasalsorecognisedaprovisioninrespectofpensionprovisionsforretiredstaffmembersofFederatedSuperannuationSystemforUniversitiesandEmployeesPensionSchemewhoreceivepensionsupplements.(seenote33)

Current Non-currentConsolidated and University 2017

£’m2016

£’m2017

£’m2016

£’mForwardforeigncurrencycontractsforinvestmentsForwardforeigncurrencycontractsforresearch

417.253.6

327.025.8

--

--

470.8 352.8 – –


25. Other Provisions

ConsolidatedBuilding

dilapidationTinbergen

£’m

Buildingdilapidation

Castle Mill£’m

Other£’m

Total£’m

At 1 August 2016 - 6.1 5.5 11.6TransferfromincomeandexpenditureaccountUtilisedinyear

20.8(0.3)

(3.4)(0.6)

(1.3)-

16.1(0.9)

At 31 July 2017 20.5 2.1 4.2 26.8

UniversityBuilding

dilapidationTinbergen

£’m

Buildingdilapidation

Castle Mill£’m

Other£’m

Total£’m

At 1 August 2016 - 6.1 4.6 10.7 TransferfromincomeandexpenditureaccountUtilisedinyear

20.8(0.3)

(3.4)(0.6)

(1.3)-

16.1(0.9)

At 31 July 2017 20.5 2.1 3.3 25.9

The“Other”provisionrelatestoprovisionsfortaxandpotentialrepaymentstoasponsor.ThebuildingdilapidationsprovisionsrelatetoremedialworkonCastleMillGraduateAccommodationandcostsassociatedwith

theclosureanddemolitionoftheTinbergenbuilding.Followingdetailedreviewofbuildingplans,partofthecostsrelatingtoCastleMillgiveextrafunctionalityandwillthereforebecapitalised.


26. Endowment Funds Permanent Endowments

Consolidated Unrestricted Restricted

Capital£’m

Unapplied Return

£’mTotal£’m

Capital£’m

Unapplied Return

£’mTotal£’m

TOTAL£’m

Capital-OriginalgiftCapital-IndexationreserveUnappliedreturn

80.121.9

-

--

154.6

80.1 21.9

154.6

256.546.7

-

--

213.4

256.5 46.7

213.4

336.6 68.6

368.0 Balance as at 31 July 2016

102.0 154.6 256.6 303.2 213.4 516.6 773.2

InvestmentIncomeNewendowmentsReclassificationtoexpendableendowmentsIndexationMarketvaluegainsReleasedtoUnrestrictedreserves

-0.1

-

2.6-

-

---

(2.6)19.7

(10.2)

- 0.1

-

- 19.7

(10.2)

-16.2

-

7.8-

-

0.1-

-

(7.8)46.0

(16.4)

0.1 16.2

-

- 46.0

(16.4)

0.1 16.3

-

- 65.7

(26.6)

Balance as at 31 July 2017

104.7 161.5 266.2 327.2 235.3 562.5 828.7

Represented by:Capital-OriginalgiftCapital-IndexationreserveUnappliedreturn

80.224.5

-

--

161.5

80.2 24.5

161.5

272.754.5

-

--

235.3

272.7 54.5

235.3

352.9 79.0

396.8 104.7 161.5 266.2 327.2 235.3 562.5 828.7

University Unrestricted Restricted

Capital£’m

UnappliedReturn

£’m

Total£’m

Capital£’m

UnappliedReturn

£’m

Total£’m

TOTAL£’m

Capital-OriginalgiftCapital-IndexationreserveUnappliedreturn

29.512.8

-

--

147.9

29.5 12.8

147.9

253.646.7

-

--

216.4

253.6 46.7

216.4

283.1 59.5

364.3 Balance as at 31 July 2016

42.3 147.9 190.2 300.3 216.4 516.7 706.9

InvestmentincomeNewendowmentsReclassificationtoexpendableendowmentsIndexationMarketvaluegainsReleasedtounrestrictedreserves

-0.1

-1.1

-

-

---

(1.1)14.6

(7.6)

-0.1

- -

14.6

(7.6)

-16.2

-

7.8-

-

0.1-

-(7.8)46.0

(16.5)

0.1 16.2

- -

46.0

(16.5)

0.1 16.3

- -

60.6

(24.1)Balance as at 31 July 2017

43.5 153.8 197.3 324.3 238.2 562.5 759.8

Represented by:Capital-OriginalgiftCapital-IndexationreserveUnappliedreturn

29.613.9

-

--

153.8

29.6 13.9

153.8

269.854.5

-

--

238.2

269.8 54.5

238.2

299.4 68.4

392.0 43.5 153.8 197.3 324.3 238.2 562.5 759.8


AsrequiredbyCharitiesLaw,toapplyTotalReturnAccountingtopermanentendowmentstheUniversityhasmadeasignificantjudgementastotherateatwhichexpenditurecanbemadeagainstunappliedreturn.Thisensuresthatbenefitcanbederivedbothnowandinperpetuity.

ThisisachievedbytheinvestmentofendowmentfundswithintheOxfordEndowmentFundwhichreturnseachyearacashdividendof4%ofholdingvalue.TheUniversityconsiders4%torepresentareasonableestimateofthelong-termreturnoninvestmentachievableaboveinflation.

Atransfertounrestrictedreservesforrestrictedpermanentendowmentsexpenditureisrecognisedtotheextentofthespendintheyearagainsttherestrictedpurposesandfortheunrestrictedpermanentendowmentsthetransfertounrestrictedreservesisbasedonthelong-termrealrateofreturnwhichisestimatedat4%.

ToensurethepreservationoforiginalendowmentcapitalinrealtermstheUniversityhasadoptedapolicyofindexingbroughtforwardpermanentendowmentcapitaleachyearbytheConsumerPriceIndex(CPI).

Restricted Expendable Endowments


CapitalAccumulated

income TotalCapital Accumulated

incomeTotal

£’m £’m £’m £’m £’m £’mBalance as at 31 July 2016 127.6 9.0 136.6 127.6 9.0 136.6 NewendowmentsTransfertocreditorsInvestmentIncomeMarketvaluegainsExpenditure

27.4(8.3)

---

-(1.1)

-12.3(6.2)

27.4 (9.4)

-12.3 (6.2)

27.4(8.3)

---

-(1.1)

-12.3(6.2)

27.4 (9.4)

- 12.3 (6.2)

Balance as at 31 July 2017 146.7 14.0 160.7 146.7 14.0 160.7

Endowment Assets

ToensurethatendowmentgiftsprovidethegreatestbenefitpossibleandwhereappropriatetoensurethattheircharitablebenefitismaintainedinperpetuitytheUniversityinvestsunspentendowmentreservesandcapitalinamixtureofinvestmentvehicles.ThesebalancesarerecognisedontheBalanceSheetwithinthebalancesheldforInvestmentsandCashandCashEquivalentsasfollows:


Investments 2017£’m

2016£’m

2017£’m

2016£’m

GlobalequitiesPrivateequityPublicequityInvestmentpropertyCreditPledgesThirdpartymanagedOtherassets

5.6183.7449.6

73.772.2

8.595.746.5

24.1166.1299.1

79.263.6

9.091.968.7

5.6183.7404.4

73.772.2

8.572.146.5

7.1156.2299.2

76.363.6

9.068.961.5

Current asset investments 35.7 2.4 35.7 2.6

Cash and cash equivalents 971.2

18.2804.2105.6

902.418.1

744.499.1

Balances as at 31 July 989.4 909.8 920.5 843.5


Endowment Purposes

Endowments,bothpermanentandexpendable,fallintothefollowingcategoriesfortheyearto31July2017.

Opening Investment gains

Investment income

New endowments

Expenditure and transfer

Closing

GeneralAcademicAcademicpostsScholarshipfundsSupportforlibrariesandmuseumsSocietiesPrizefunds

341.7268.8240.2

36.617.3

5.2

45.915.613.4

2.00.70.4

---

-0.1

-

7.010.523.8

2.4--

(29.5)(6.1)(5.2)

(0.8)(0.4)(0.2)

365.1 288.8 272.2

40.2 17.7

5.4 Balance as at 31 July 2017 909.8 78.0 0.1 43.7 (42.2) 989.4

Material Endowments

ThefollowingendowmentfundsareconsideredtobeindividuallymaterialtotheUniversity:

Nuffield Benefaction

James Martin 21st Century

Foundation

Moritz–Heyman

£’m £’m £’mBalance as at 31 July 2016Capital-OriginalgiftCapital-IndexationreserveUnappliedreturn

3.10.6

86.1

50.69.15.9

49.60.7

15.789.8

8.3(3.3)

65.6 6.1

(2.6)

66.010.2(2.2)

InvestmentgainsandincomeExpenditureBalance as at 31 July 2017 94.8 69.1 74.0 Represented by:Capital-OriginalgiftCapital-IndexationreserveUnappliedreturn

3.10.7

91.0

50.610.6

7.9

49.62.0

22.494.8 69.1 74.0

ThedonorfortheNuffieldBenefactionwasLordNuffield(WilliamMorris).Underthetermsofthetrustdeeddated24November1936thefundistobeusedtowidenthescopeoftheMedicalSchooloftheUniversityandprovidespecialfacilitiesforresearch.

TheprimarypurposeoftheJamesMartin21stCenturyFoundation(establishedin2004)andJamesMartin21stCentury(UK)Trust(establishedin2012)istosupporttheOxfordMartinSchool(formerlyJamesMartin21stCenturySchool)andestablishorsupportanyotherentitywithintheUniversitythatadvancesspecialisededucationrelatingtothesevereproblemsofthe21stcentury.

TheMoritz–HeymanScholarshipFundwasestablished

in2012/13throughanendowmentgiftfromtheCrankStartFoundationtoprovideaprogrammeofsupportforUKresidentundergraduatestudentsfromdisadvantagedbackgrounds.Underthetermsofthedeedofgift,theUniversityisrequiredtocommitmatchingincomeannuallyforthesamepurpose.

Totalreturnaccountingcanleadtonegativeunappliedtotalreturnespeciallyintheshorttermasthetotalreturnrateisalong-termrateofreturn.TheUniversityreducestheriskoftrustfundserodingtheircapitalbyensuringthataccumulatedexpendituredoesnotexceedtheaccumulatedincomeforindividualtrustfunds.Therearenotrustfundswithgreaterthan£0.5mdeficitintheirunappliedtotalreturn(2015/16:none).


27. Restricted reservesTheUniversityhasreceivedcharitabledonationsandgiftswithrestrictedpurposesfallingintothefollowingcategories:

Consolidated

As at 31 July 2016

£’m

New donations &

grants£’m

Restricted expenditure

£’m

As at 31 July 2017

£’mGeneralacademicAcademicpostsScholarshipfundsSupportforlibrariesSupportformuseumsDonatedheritageassetsMixedusebuildings

13.12.45.51.41.7

51.12.5

16.12.07.51.02.93.2

-

(10.8)(1.8)(5.9)(1.2)(2.7)

--

18.42.67.11.21.9

54.32.5

77.7 32.7 (22.4) 88.0

University

As at 31 July 2016

£’m

New donations &

grants£’m

Restricted expenditure

£’m

As at 31 July 2017

£’mGeneralacademicAcademicpostsScholarshipfundsSupportforlibrariesSupportformuseumsDonatedheritageassetsMixedusebuildings

13.12.45.51.41.7

51.12.5

16.12.07.51.02.93.2

-

(10.8)(1.8)(5.9)(1.2)(2.7)

--

18.42.67.11.21.9

54.32.5

77.7 32.7 (22.4) 88.0

28. Linked charities

TheUniversityadministers,eitherdirectlyorindirectly,anumberofcharitableinstitutionsthatareestablishedforitsgeneralpurposesoraspecialpurposeorinconnectionwithit.Underparagraph28(1)ofSchedule3oftheCharitiesAct2011,theseinstitutionsarereferredtoas“paragraph28”or“linked”charities.TheyfallundertheumbrellaoftheUniversity’scharitablestatusandareexemptfromregistrationwiththeCharitiesCommission.TheUniversitymaintainsadetailedregisterofitslinked

charitiesandforthosewithincomeofmorethan£100kpublishesinformationviaitsgatewaypageat: www.ox.ac.uk/about/organisation/university-as-a-charity.Thefinancialresultsofthoselinkedcharitiesaredisclosedbelow.

TheCollegesoftheUniversityarespecificallyexcludedfrombeingConnectedCharitiesunderthe2011CharitiesActbeingestablishedascharitableentitiesintheirownright.


As at 31 July 2016

£’m

Incoming resources including

investment gains

£’m

Outgoing resources

and expenditure

£’m

As at 31 July 2017

£’mConsolidated into the Group Financial StatementsJamesMartin21stCentury(UK)TrustTheGrayLaboratoryCancerResearchTrust

65.6 (0.1)

6.61.6

(3.1)(1.6)

69.1 (0.1)

Aggregated into the University Financial Statements UniversityofOxfordDevelopmentTrustFundOxfordUniversityLawFoundation

1,222.4 0.5

128.40.1

(52.4)-

1,298.4 0.6

Excluded from the University and group accounts as they are not controlled by the University

OxfordUniversityBoatClubOxfordUniversityRugbyClubOxfordUniversityWomen’sBoatClubOutoftheBlueSmallersportscharitiesSmallernon-sportscharities

3.9 0.2 0.1

- 0.2 0.7

0.40.30.30.10.10.3

(0.4)(0.4)(0.3)

-(0.1)(0.6)

3.9 0.1 0.1 0.1 0.2 0.4

Excluded from the University and group accounts as the University does not derive direct benefits from their activitiesNuffieldDominionsTrustCollegeContributionFund

25.9 53.5

2.113.7

(0.4)(2.2)

27.6 65.0

FurtherdetailsabouttheUniversity’sConnectedCharitiesareavailableviatheUniversity’sgatewaypageatwww.ox.ac.uk/about/organisation/university-as-a-charity.

29. Capital and other commitmentsProvisionhasnotbeenmadeforthefollowingcapitalcommitmentsat31July2017.


£’m2016

£’m2017

£’m2016

£’mAttheendoftheyeartheUniversityhadmajorcapitalcommitmentsforbuildingprojectsasfollows:

Contracted for: 104.0 93.3 104.0 93.3

AttheendoftheyeartheUniversityhadcommitmentstoinvestadditionalfundswithinitsinvestmentportfolio 331.0 302.0 331.0 302.0


30. Contingent liabilities

AsexplainedintheStatementofAccountingPolicies,thesefinancialstatementsdonotincludethoseassetsandliabilitiesthatrelatetotheactivitiesofthePress.IntheunlikelyeventofthePressnothavingsufficientassetstomeetsuchliabilities,thoseliabilitieswouldfalltobemetbytheUniversityasawhole.At31March2017thedateofitslatestauditedbalancesheet,thePresshadtotalnetassetsof£541.1m(2016:£530.1m),afterdeductingtotalliabilitiesof£494.8m(2016:£383.7m).

TheUniversityhasenteredintoanagreementwiththeTrusteesoftheOxfordStaffPensionScheme(‘OSPS’)to

eliminatetheschemedeficitoveraperiodofyears.AssecurityforthepaymentoftheagreedcontributionsintotheScheme,theUniversityhasgrantedafloatingchargeinfavouroftheTrusteesofOSPSovercertainassets,whicharelocatedintheUnitedKingdom,subjecttothevaluenotfallingbelow£100m.

TheUniversityasawholeissubjecttoanumberoflegalclaimsandothermatterstheoutcomesofwhichareuncertainandmaygiverisetoliabilitiesorotheradverseconsequenceswhichcannotcurrentlybequantified.

31. Lease obligationsTotal rentals payable under operating leases:

Land and BuildingsConsolidated University

2016/17£’m

2015/16£’m

2016/17£’m

2015/16£’m

Payable during the year

Future minimum lease payments due:Notlaterthan1yearLaterthan1yearandnotlaterthan5yearsLaterthan5years

4.8

3.011.121.0

4.0

4.012.036.1

4.8

3.011.121.0

4.0

4.012.036.1

Total lease payments due 35.1 52.1 35.1 52.1

32. Related parties Duringtheyearended31July2017theUniversityhadtransactionswithentitiesandindividualswhichfellwithinthedefinitionofRelatedPartiesunderSection33ofFRS102.TransactionsaredisclosedwhereKeyManagementPersonnel,includingallmembersofCouncilandotherseniormembersofstaff,discloseaninterestinabodywithwhichtheUniversityundertakestransactionswhichareconsideredmaterialtotheUniversity’sFinancialStatementsand/ortheotherparty.DuetothenatureoftheUniversity’soperationsandthecompositionofCouncil(beingdrawnfromcollegesandotherprivateandpublicsectororganisations),itisinevitablethattransactionsinthenormalcourse

ofbusinesswilltakeplacewithorganisationsinwhichamemberofCouncilmayhaveaninterest.AlltransactionsinvolvingorganisationsinwhichamemberofCouncilmayhaveaninterestareconductedinaccordancewiththeUniversity’sfinancialregulationsandnormalprocurementprocedures.

IncludedintheFinancialStatementsarethefollowingtransactionsbetweentheUniversityandrelatedpartieswhereamemberoftheUniversityCouncilorSeniorOfficerwasalsoadirectorortrusteesoftherelatedparty.Thisexcludesthecollegeswhichareseparatelegalentities.


Related Party Nature of relationship Income £’000

Expenditure /Transfers

£’000

Balance due to/(from)

the University£’000

AdaptimmuneLimited

BTGInternationalLtd

EdwardPenleyAbrahamResearchFundGuyNewtonResearchFund

ImperialCollegeLondon

JISCCollectionsandJanetLimitedJohnWiley&SonsInc

McGillUniversity

MedicalSchoolsCouncil

ModalityPartnership

NanjingUniversityNationalInstituteforHealthResearch

OpticalSocietyofAmerica

OxfordBioMedica(UK)LimitedOxfordSciencesInnovationPlc

RoyalAcademyofEngineering

Taylor&FrancisGroup

TheCompanyofBiologistsLtd

TheRussellGroupofUniversitiesUKBiobankLimitedUniversityandCollegeUnion(UCU)WellcomeTrust

Aseniormanagerisanon-executivedirectorAseniormanagerisanon-executivedirectorMemberofCouncilisatrustee

MemberofCouncilisatrustee

Apro-vice-chancellorisamemberoftwoadvisoryboardsandamemberofCouncilisavisitingprofessorApro-vice-chancellorisatrustee

Apro-vice-chancellorisaneditorialboardmemberforajournalThereisacollaborationinneuroscienceMemberofCouncilisonasub-committeeMemberofCouncilisapartnerintheGPpracticeMemberofCouncilisaresearcherTheVice-ChancellorandotherseniormanagementmembersareontheboardApro-vice-chancellorispresident-electApro-vice-chancellorisaconsultantAseniormanagerisanon-executivedirectorMemberofCouncilisafellow,anotherisamemberofacommitteeMemberofCouncilisabookserieseditor,andapro-vice-chancellorisaneditorialboardmemberforajournalMemberofCouncilistheChairmanandatrusteeVice-Chancellorsitsontheboard

MemberofCouncilistheCEOMemberofCouncilisamember

3centresaredirectedbyOxfordacademics

54

10

471

25

263

-

244

25

-

-

6553

-

3730

22

5

-

-

-38

91

-

-

-

-

193

1,348

23

72

18

10

--

14

48-

-

13

18

69

275-

134

-

-

118

22

(70)

39

1

1

-

-

--

-

76

-

-

-

-

243

(22)

Transactions with joint venture and associatesJennerVaccineFoundation - - -

Theresultshavebeenrestrictedtoaminimumlimitof£10kforeitherIncomeorExpenditure.

TherewerenotransactionsintheyearbetweentheUniversityandKeyManagementPersonnelotherthanremuneration.

TheUniversityofOxford,intheformof‘TheChancellorMastersandScholarsoftheUniversityofOxford’,istheultimatecontrollingentityofthegroupconsolidatedintotheseFinancialStatements.Ithasanumberofwhollyownedsubsidiaries,assetoutinnote16,whichasperSection33ofFRS102arenot

consideredtoberelatedparties.

Duringtheyear,theUniversitymadegrantsandotherpaymentstotalling£488k(2016:£402k)totheOxfordUniversityStudentUnionanditswholly-ownedsubsidiary.

TheAlanTuringInstitute:TheInstitutehasbeencreatedasagovernmentinitiativetofundanationalcentrefordatascienceandanalysis,andisajointventurebetweenfiveuniversitieswhoareallmakinggrantstotheInstitute.TheUniversityasafoundingpartnerhasagreedtomakeagrantof£5mtothenewInstitute.Thiscommitmenthasbeenrecordedasacreditorat31stJuly2017.


Colleges:

The36externalcollegesoftheUniversityofOxfordareindependentlegalinstitutionsandarethereforenotincludedinthefinancialresultsoftheUniversity.WhilsttheUniversityhasnofinancialresponsibilityforthecolleges,thecollegiatenatureofOxfordgivesrisetofinancialinteractionbetweentheUniversityandcolleges.DuringtheyeartheUniversitypaid£53.9mtothecollegesviaitsJointResourceAllocationMethod(JRAM)(seenote9)outofHEFCEfundingandfeeincome(2016:£54.5m).

TheUniversitymadeapaymentof£1mtotheCollegeContributionsFundin2016/17(2016:£1m)andwillmakeafinalpaymentof£1min2017/18.TheFundfinancesaschemewhichprovidessupporttocollegeswithrelativelylowassets.TheUniversityagreedtomakethesepaymentstohelpbuildupapermanentendowmenttoprovideincomegrants.Grantsareawardedtocollegestoimproveservicesinkeyareas,includingtheprovisionofbursaries,scholarships,libraries,ITandteachingsupport.

ConsolidatedIncome 2017

£’m2016

£’mMedicalResearchCouncilScienceandTechnologyFacilitiesCouncilEngineeringandPhysicalSciencesResearchCouncilArts&HumanitiesResearchCouncilBiotechnology&BiologicalSciencesResearchCouncilNaturalEnvironmentalResearchCouncilEconomic&SocialResearchCouncil:

56.810.442.8

4.011.3

6.35.2

61.19.7

45.7 3.8 10.2 7.6 5.0

136.8 143.1

Other areas of interaction with the colleges are as follows:

Investments:ThecollegesareabletoinvestintheOxfordEndowmentFund;suchinvestmentsaretreatedas‘amountsattributabletooutsidebodies’andaredeductedfromFixedAssetInvestments(seenote15).At31July2017theUniversityheldinvestmentsintheEndowmentFundamountingto£607.3m(2016:£404.5m)oncolleges’behalf.CollegesarealsoamongtheinvestorsintheOxfordCapitalFund.Theyhaveinvested£47.5masat31July2017(2016:£23.5m).

GeneraltradingtakesplacebetweentheUniversity

andcolleges,includingtheprovisionofresearch,accommodation,andteachingfacilities.Thesearrangementsareundertakenonacommercialbasis.

Otherexternalfunds/trusts:CertainexternaltrustsprovideresearchandotherfundingtotheUniversityandsomecolleges.Anumberofthesetrusts(note26)areallowedtoparticipateintheOxfordEndowmentFund,andsuchassetsheldontheirbehalfbytheUniversityareincludedinthedeductionfromFixedAssetInvestments(seenote15).

OxfordSciencesInnovationplc,(OSI):TheUniversityhassigneda15yearagreementwithOSIforthefundinganddevelopmentofspin-outcompaniesbasedonresearchfromtheMathematical,PhysicalandLifeSciencesandMedicalSciencesDivisions.TheUniversityhasa5%equitydilutablestakeinOSIandafurtherindirectholdingof4%throughtheOxfordEndowmentfund.

TheUniversityprovidessupporttospinoutcompaniesinwhichithasinvestedviaOxfordUniversityspinoutEquityManagement.

ResearchCouncils:Incommonwithmanyuniversities,seniormembersoftheUniversitysitonResearchCouncils,otherNHSTrustboardsandothergrantawardingbodieswhichhavetheirowninternalprocedurestoavoidpotentialconflictsofinterest.MembersofCouncilalsositonResearchCouncilsandtheirsub-committeesincludingtheEngineeringandPhysicalSciencesResearchCouncil,theScienceandTechnologyFacilitiesCouncil,theMedicalResearchCouncilandtheArtsandHumanitiesResearchCouncil.


33. Pension schemesTheUniversityparticipatesintwoprincipalpensionschemesforitsstaff-theUniversitiesSuperannuationScheme(USS)andtheUniversityofOxfordStaffPensionScheme(OSPS).Theschemesarecontributorydefinedbenefitschemes(i.e.theyprovidebenefitsbasedonlengthofserviceandpensionablesalary)anduntilApril2016werecontractedoutfromtheStateSecondPensionScheme.TheassetsofUSSandOSPSareeachheldinseparatetrustee-administeredfunds.Theschemesaremulti-employerschemesandtheUniversityisunabletoidentifyitsshareoftheunderlyingassetsandliabilitiesofeachschemeonaconsistentandreasonablebasis.Therefore,inaccordancewiththeaccountingstandardFRS102paragraph28.11,theUniversityaccountsfortheschemesasiftheyweredefinedcontributionschemes.Asaresult,theamountchargedtotheIncomeandExpenditureAccountrepresentsthecontributionspayabletotheschemesinrespectoftheaccountingperiod.From1October2017OSPSintroducedadefinedcontributionsectionfornewentrantsandfrom1April2018changesintroducedwillbreakthefinalsalarylinkforcertainmembers.

IntheeventofthewithdrawalofanyoftheparticipatingemployersinUSS,theamountofanypensionfundingshortfall(whichcannotbeotherwiserecovered)in

respectofthatemployerwillbespreadacrosstheremainingparticipatingemployersandreflectedinthenextactuarialvaluationofthescheme.

However,inOSPStheamountofanypensionfundingshortfallinrespectofanywithdrawingparticipatingemployerwillbechargedtothatemployer.

TheUniversityalsohasasmallnumberofstaffinotherpensionschemes,includingtheNationalHealthServicePensionScheme(NHSPS),theSuperannuationArrangementsoftheUniversityofLondon(SAUL)andtheMedicalResearchCouncilPensionScheme(MRCPS).TheUniversity’sparticipationinNHSPSisinrespectofemployeeswhomeetcertaineligibilitycriteria,includingbeinganactivememberoftheschemepriortojoiningtheUniversity.TheUniversity’sparticipationinSAULisinrespectofemployeesoftheGrayLaboratoryCancerResearchTrustwhichwasacquiredbytheUniversityon30June2006.TheUniversity’sparticipationinMRCPSisinrespectofemployeeswhoseunitstransferredfromotherMRCfundedinstitutions.

TheUniversityhasmadeavailableaNationalEmploymentSavingsTrustfornon-employeeswhoareeligibleunderautomaticenrolmentregulationstopensionbenefits.

Actuarial valuations

ThelastfullactuarialvaluationoftheNHSPSwasperformedasat31March2012.The2012valuationreportedschemeliabilitiesof£240bn.Therearenounderlyingassets,andthereforenosurplusordeficitwasreportedexceptonapurelynotionalbasis.Anaccountingvaluationoftheschemeliabilityiscarriedoutannuallybytheschemeactuary,whosereportformspartoftheannualNHSPensionScheme(EnglandandWales)ResourceAccount,publishedannually.TheseaccountscanbeviewedontheNHSPensionswebsite.Theactuaryagreedthattheemployercontributionsratewouldincreasefrom14.0%to14.3%from1April2015.WiththeintroductionofthenewpensionarrangementsbasedonCareerAverageRevaluedEarnings,the2015Scheme,thecontributionswillbe14.3%forafour-yearperiodandtheratewillbereassessedatthenextvaluationtobecarriedoutasat31March2016.NHSPSisinasimilarpositiontoUSSinthatintheeventofthewithdrawalofaparticipatingemployertheremainingparticipatingemployerswillassumeresponsibilityforanyincreasedcontributionsarising.

ThelastfullactuarialvaluationofSAULwasperformedasat31March2014.The2014valuationreportedadeficitonatechnicalprovisionsbasisof£9mand

was97%funded.From1April2016theemployers’contributionrateincreasedby3%to16%fortheperiodto31March2018inaccordancewiththedeficitrecoveryplan.On1April2016anumberofchangesweremadetothebenefitsprovidedincludingclosureofthefinalsalaryplan,withallmembersnowbuildingupbenefitsonaCareerAverageRevaluedEarningsbasisatanaccrualrateof1/75ths.InSAULtheamountofanypensionfundingshortfallinrespectofanywithdrawingparticipatingemployerwillbechargedtothatemployer.

QualifiedactuariesperiodicallyvaluetheUSS,OSPS,MRCPSandSAULschemesusingthe‘projectedunitmethod’,embracingamarketvalueapproach.Theresultinglevelsofcontributiontakeaccountofactuarialsurplusesordeficitsineachscheme.Thefinancialassumptionswerederivedfrommarketconditionsprevailingatthevaluationdate.Theresultsofthelatestactuarialvaluationsandtheassumptionswhichhavethemostsignificanteffectontheresultsofthelatestvaluationsandthedeterminationofthecontributionlevelsareforthetwoprincipalschemesshowninthefollowingtable.TheotherschemesdonothavesignificantnumbersofUniversityemployeescontributing.


USS OSPSDateofvaluation:Date valuation results published:Valueofliabilities:Valueofassets:Fundingsurplus/(deficit):

31/03/201424/07/2015

£46.9bn£41.6bn

(£5.3bn)a

31/03/201628/04/2017

£661m£528m

(£133m)b

Principal assumptions:InvestmentreturnRateofinterest(periodsuptoretirement)Rateofinterest(periodsafterretirement)RateofincreaseinsalariesRateofincreaseinpensions

5.2%cpa--

RPI+1%pad

CPIpad

-Gilts’+1.2%RPI+1%pa

AverageRPI/CPIpa

Mortality assumptions:Assumedlifeexpectancyatage65(males)Assumedlifeexpectancyatage65(females)

24.2yrs26.3yrs

22.4yrs24.7yrs

Funding Ratios:Technicalprovisionsbasis:StatutoryPensionProtectionFundbasis:‘Buy-out’basis:EstimatedFRS102totalfundinglevel

89%82%

54%e

77%e

80%67%42%82%

Recommendedemployer’scontributionrate(as%ofpensionablesalaries): 18%e 23%,decreasingto19%from

01/08/2017f

Effectivedateofnextvaluation: 31/03/2017 31/03/2019

Notes: a.USSactuarialvaluationasat31March2014takesintoaccounttherevisedbenefitstructureeffective1April2016agreedbothbytheJointNegotiating

CommitteeandtheTrusteeinJuly2015followingtheEmployers’consultationwhichconcludedinJune2015.Keychangesagreedinclude:forFinalSalarysectionmembers,thebenefitsbuiltupto31March2016werecalculatedasatthatdateusingpensionablesalaryandpensionableserviceimmediatelypriortothatdateandgoingforwardswillberevaluedinlinewithincreasesinofficialpensions(currentlyCPI);allmembersaccrueapensionof1/75thandacashlumpsumof3/75thsofsalaryeachyearofserviceinrespectofsalaryuptoasalarythreshold,initially£55,000p.a.,withthethresholdapplyingfrom1October2016;membercontributionsare8%ofsalary;adefinedcontributionbenefitforsalaryabovethesalarythresholdatthetotallevelof20%ofsalaryinexcessofthesalarythreshold;andoptionaladditionalcontributionspayableintothedefinedcontributionsectionfrom1October2016ofwhichthefirst1%ofsalaryismatchedbytheemployer.FurtherdetailsaboutthechangesmaybereviewedonUSS’website,www.uss.co.uk.Fortheperiodupto1April2016theemployerdeficitcontributionwas0.7%p.a.ofsalariesbasedontheassumptionsmade.Afterallowingforthosechanges,theactuaryestablishedalong-termemployercontributionrateof18%p.a.ofsalariesfortheperiodfrom1April2016to31March2031.Ontheassumptionsmadeandwiththesalarythresholdanddefinedcontributionsectionimplementedthisgivesrisetodeficitcontributionsofatleast2.1%p.a.ofsalaries.At31March2017USSreportedthattheestimatedfundingdeficitwas£12.6bn(83%funded).

b.OSPS’actuarialvaluationasat31March2016identifiedarequiredlong-termemployercontributionrateof17.3%oftotalpensionablesalaries,withafundingdeficitof£133m.ThevaluationresultsreflectanumberofchangestobenefitsthatwereagreedfollowinganEmployers’consultationinearly2017,includingfrom1April2017achangeinindexationbasedontheaverageofRPIandCPI,from1October2017adefinedcontributionsectionfornewentrantsandfrom1April2018breakingthefinalsalarylinkforcertainmembersandincreasedemployeecontributions.Theactuaryhascertifiedthattherecoveryplanshouldeliminatethedeficitby30June2027.Thenexttriennialvaluationisduewithaneffectivedateof31March2019.

c.USS’actuaryhasassumedthattheinvestmentreturnis5.2%inyear1,decreasinglinearlyto4.7%over20years. d.USS’actuaryhasassumedthatgeneralpaygrowthwillbeCPIinyear1,CPI+1%inyear2andRPI+1%p.a.thereafter.ItisassumedthatCPIisbasedonthe

RPIassumption(marketderivedpriceinflationof3.6%p.a.lessaninflationriskpremium)lessRPI/CPIgapof0.8%p.a.

e.Asnotedabove(notea)theUSSemployercontributionrateis18%ofsalariesfrom1April2016.Priortothatdateitwas16%ofsalaries.Thetotalemployercontributionsincludeprovisionsforthecostoffutureaccrualofdefinedbenefits(DB)(netofmembercontributionstotheDBsection),deficitcontributions,administrativeexpensesof0.4%ofsalariesandfromtheimplementationofthesalarythresholdtheemployercontributiontowardsdefinedcontributionbenefitsincludingemployermatchingcontributionsandcertaininvestmentmanagementcostsrelatingtotheDCsection.

f.Asnotedabove(noteb),theOSPSemployercontributionraterequiredforfutureservicebenefitsinthedefinedbenefitsectionaloneis17.3%oftotalpensionablesalariesfrom1April2018.Theemployercontributionratewas23%from1August2016to31July2017.Itwasagreedthatemployercontributionratewouldbe19%forbothdefinedbenefitsmembersanddefinedcontributionsmemberswhojoinonorafter1October2017.Partofthecontributionfordefinedcontributionmemberswouldbepaidtothedefinedbenefitsectiontocoverthedeficitrecoveryplan,theprovisionofill-healthanddeath-in-servicebenefitsandtheexpensesofadministeringthedefinedcontributionsection.


Sensitivity of actuarial valuation assumptions

SurplusesordeficitswhichariseatfuturevaluationsmayimpactontheUniversity’sfuturecontributioncommitment.Thesensitivitiesregardingtheprincipalassumptionsusedtomeasuretheschemeliabilitiesaresetoutbelow:

USSAssumption Change in assumption Impact on USS liabilitiesInitialdiscountrate increase/reduceby0.25% decrease/increaseby£0.8bnDiscountratein20years’time increase/reduceby0.25% decrease/increaseby£1.1bnRPIinflation increase/decreaseby0.1% increase/decreaseby£0.8bnRateofmortality moreprudentassumption(mortality

usedatlastvaluation,rateddownbyafurtheryear)

increaseby£0.5bn

OSPSAssumption Change in assumption Impact on USS liabilitiesRPIinflation increase/decreaseby1% decrease/increaseby£73mRateofsalarygrowth increase/decreaseby0.5% increase/decreaseby£13mRateofmortality moreprudentassumption(mortality

usedatlastvaluation,rateddownbyafurtheryear)

increaseby£18m

Deficit Recovery Plans

InlinewithFRS102paragraph28.11A,theUniversityhasrecognisedaliabilityforthecontributionspayablefortheagreeddeficitfundingplan.Theprincipalassumptionsusedinthesecalculationsaretabledbelow:

OSPS USSFinishDateforDeficitRecoveryPlanAverageStaffNumberIncreaseAveragestaffsalaryincreaseAveragediscountrateoverperiodEffectof0.5%changeindiscountrateEffectof1%changeinstaffgrowth

30/06/20262.4%2.0%1.4%

£0.6m£4.1m

31/03/20313%

2.0%1.75%£5.2m

£11.0m

Aprovisionof£194.2mhasbeenmadeat31July2017(2016:£197.4m)forthepresentvalueoftheestimatedfuturedeficitfundingelementofthecontributionspayableundertheseagreements,usingtheassumptionsshown.Theprovisionreducesasthedeficitispaidoffaccordingtothepensionrecoveryscheme.

Pension charge for the year

ThepensionchargerecordedbytheUniversityduringtheaccountingperiod(excludingpensionfinancecosts)wasequaltothecontributionspayableafterallowanceforthedeficitrecoveryplanasfollows:

Scheme 2016/17 2015/16 £’m £’mUniversitiesSuperannuationSchemeUniversityofOxfordStaffPensionSchemeNHSPensionSchemeMRCOtherschemes–contributions

63.514.5

4.00.51.4

74.515.6

4.10.40.7

Total 84.0 95.3

Includedinothercreditorsarepensioncontributionspayableof£11.1m(2016:£10.9m).

Acopyofthefullactuarialvaluationreportandotherfurtherdetailsontheschemeareavailableontherelevantwebsite:www.uss.co.uk,www.nhsbsa.nhs.uk/Pensions,www1.admin.ox.ac.uk/finance/epp/pensions/schemes/osps, www.saul.org.uk.


Abstract of the Accounts of the Trading Operations and the Delegates’ Property and Reserve Fund of Oxford University Press for the year ended 31 March 2017Introductory note

TheDelegateswishtoobservethat:

(a) theabstractsofAccountsaredrawnfromthefullauditednon-statutoryaccountsoftheTradingOperationsandtheDelegates’PropertyandReserveFundofthePress;

(b) withregardtotheabstractofthecombinedBalanceSheetoftheTradingOperations,theshorttermcashpositionissubstantiallystrongerat31Marchthanatcertainothertimesoftheyear;

(c) aproportionofearningsandcashbalancesarisingincertainoverseascountriesisnotavailableforuseelsewhere;

(d) theDelegates’PropertyandReserveFundwasestablishedduringtheyearended31March1984inordertodistinguishmoreclearlythereserveinvestmentsofthePressfromtheassetsandliabilitiesrelatingtotheTradingOperations.TheFundholdsandmanagesthepropertiesofthePresstogetherwiththeincomearisingtherefrom.ThemainpurposeoftheFundistomanage,intheshortandmediumterm,theimpactonthePress,andconsequentlyontheUniversity,oftherealisationofmaterialeconomicandfinancialriskstothePress.

Theauditedannualnon-statutoryaccountsoftheTradingOperationsandDelegates’PropertyandReserveFundofOxfordUniversityPresscanbeobtainedfromOxfordUniversityPress,GreatClarendonStreet,OxfordOX26DP.


Independent Auditor’s Statement to the Delegates of the Oxford University PressWehaveexaminedtheAbstractofthenon-statutoryaccountsoftheTradingOperationsandtheDelegatesPropertyandReserveFundofOxfordUniversityPressfortheyearended31March2017whichcomprisestheabstractofthecombinedbalancesheet,combinedstatementofcomprehensiveincomeandcombinedstatementofchangesinequity,oftheTradingOperationsandtheabstractofthecombinedbalancesheetandcombinedstatementoffinancialactivitiesoftheDelegatesPropertyandReserveFund(“theAbstract”).

ThisstatementismadesolelytotheDelegatesoftheOxfordUniversityPress,asabody,inaccordancewithourtermsofengagement.OurworkhasbeenundertakensothatwemightstatetotheDelegatesthosematterswehaveagreedtostatetotheminsuchastatementandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthanOxfordUniversityPressandtheDelegates,asabody,forourwork,forthisstatement,orfortheopinionswehaveformed.

Respective responsibilities of the Delegates and KPMG LLP

TheDelegatesareresponsibleforpreparingtheAbstractwithintheFinancialStatementsoftheUniversityofOxfordinaccordancewiththeapplicableStatutesofOxfordUniversity.Ourresponsibilityistoreporttoyououropinionontheaccurateextractionofthecaptions

andamountsincludedinAbstractwithintheFinancialStatementsoftheUniversityofOxfordwiththefullannualnon-statutoryaccountsoftheTradingOperationsandDelegatesPropertyandReserveFundofOxfordUniversityPress.

Basis of opinion

OurexaminationoftheAbstractconsistedprimarilyofagreeingthecaptionsandamountsincludedintheAbstracttothecorrespondingitemswithinthefullannualnon-statutoryaccountsoftheTradingOperationsandtheDelegatesPropertyandReserveFundofOxfordUniversityPressfortheyearended31March2017.WealsoreadtheotherinformationcontainedintheFinancialStatementsoftheUniversityofOxfordandconsidertheimplicationsforourstatementifwebecomeawareofanyapparentmisstatementsormaterialinconsistencieswiththeAbstract.

Thisengagementisseparatefromtheauditoftheannualnon-statutoryaccountsofTradingOperationsandtheDelegatesPropertyandReserveFundofOxfordUniversityPressandthereporthererelatesonlytotheextractionoftheAbstractfromthoseannualnon-

statutoryaccountsanddoesnotextendtotheannualnon-statutoryaccountstakenasawhole.

Assetoutinourauditreportonthosenon-statutoryaccounts,thatauditreportismadesolelytotheDelegates,asabody,inaccordancewithCouncilRegulation20of2002ofOxfordUniversity.TheauditworkhasbeenundertakensothatwemightstatetotheDelegatesthosematterswearerequiredtostatetotheminanauditor’sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthantheTradingOperationsandDelegatesPropertyandReserveFundofOxfordUniversityPressandtheDelegatesasabodyforthatauditwork,fortheauditreport,orfortheopinionswehaveformedinrespectofthoseaudits.

Opinion

Onthebasisoftheworkperformed,inouropinionthecaptionsandamountsincludedintheAbstracthavebeenaccuratelyextractedfromthefullannualnon-statutoryaccountsoftheTradingOperationsandDelegatesPropertyandReserveFundofOxfordUniversityPressfortheyearended31March2017.

KPMG LLP Arlington Business Park, Theale, Reading, RG7 4SD 30 May 2017


Abstract of the Combined Balance Sheet of the Trading Operations as at 31 March 2017

2017 2016£’m £’m £’m £’m

Fixed assetsTangibleassetsIntangiblefixedassetsInvestments

19.573.0

0.5

22.483.9

0.593.0 106.8

Current assetsIntangibleassets-pre-publicationFixedassetheldforsaleStockandwork-in-progressDebtorsCurrentassetinvestmentsCashatbankandinhand

20.72.3

76.3246.4229.8

31.4

20.0-

73.2203.8174.2

22.0606.9 493.2

Current liabilitiesCreditors:amountsfallingduewithinoneyearTaxationBankloansandoverdrafts

(273.3)(7.7)0.0

(209.3)(12.8)

(8.0)(281.0) (230.1)

Net current assets 325.9 263.1Total assets less current liabilities 418.9 369.9Creditors:amountsfallingdueaftermorethanoneyear (6.7) (7.2)Provisionsforliabilities (1.5) (1.6)Net assets excluding pension liability 410.7 361.1Pensionliability (197.1) (126.7)Net assets 213.6 234.4Capital employedAccumulatedfund 211.9 232.7Minorityinterests 1.7 1.7Total fund 213.6 234.4

Abstract of the Combined Results of the Trading Operations for the year ended 31 March 2017

2017 2016 £’m £’mTurnover 847.4 760.5Profit before taxTaxation

110.5(16.7)

85.3(10.1)

Profit after taxProfit attributable to minority interests

93.8(0.1)

75.2(0.4)

Profit for the year 93.7 74.8Theaboveresultsrelatetocontinuingoperations.


Abstract of the Combined Statement of Comprehensive Income of the Trading Operations for the year ended 31 March 2017

Abstract of the Combined Statement of Changes in Equity of the Trading Operations for the year ended 31 March 2017

Cash Flow Hedging Reserve

£’m

Profit and Loss Account

£’mTotal£’m

Balance at 1 April 2015Total comprehensive income for the year:ProfitfortheyearOthercomprehensiveincomeTransfertodelegates’propertyandreservefund

4.8

-(10.6)

-

195.9

74.812.7

(44.9)

200.7

74.82.1

(44.9)Balance at 31 March 2017 (5.8) 238.5 232.7Total comprehensive income for the year:ProfitfortheyearOthercomprehensiveincomeTransfertodelegates’propertyandreservefund

-3.3

-

93.7(77.8)(40.0)

93.7(74.5)(40.0)

Balance at 31 March 2017 (2.5) 214.4 211.9

2017£’m

2016£’m

Profit for the year 93.7 74.8 Other comprehensive income:Effectiveportionofchangesinfairvalueofcashflowhedges 3.3 (10.6)Actuarial losses on group pension schemesActuarial(loss)/gainarisingduringperiodReturnonschemeassetsgreater/(less)thandiscountrateCurrencyTranslationDifferencesOnForeignCurrency

(183.5) 96.4

9.3

28.9 (16.2)

-Total other comprehensive income (74.5) 2.1 Total recognised comprehensive income relating to the year 19.2 76.9


Abstract of the Combined Balance Sheet of the Delegates’ Property and Reserve Fund as at 31 March 2017

2017 2016

Strategic property

reserve£’m

Effective operating

reserve £’m

Total £’m

Total £’m

Fixed assets PropertiesInvestments

187.424.0

89.725.3

277.149.3

252.330.2

211.4 115.0 326.4 282.5Current assetsDebtorsCashatbankandinhand

0.38.0

1.3-

1.68.0

0.329.3

8.3 1.3 9.6 29.6Creditors:amountsfallingduewithinoneyear

(8.4) (0.1) (8.5) (16.4)

Net current assets/(liabilities) (0.1) 1.2 1.1 13.2 Total assets less current liabilities 211.3 116.2 327.5 295.7Net assets 211.3 116.2 327.5 295.7Reconciliation of fundsOpeningbalanceNetmovementinfunds

195.415.9

100.315.9

295.731.8

270.625.1

Total funds 211.3 116.2 327.5 295.7


Abstract of the Combined Statement of Financial Activities of the Delegates’ Property and Reserve Fund for the year ended 31 March 2017

2017 2016Strategic Property

Reserve £’m

Effective Operating

Reserve £’m

Total£’m

Total£’m

INCOMING RESOURCES FROM GENERATED FUNDSRentalincomefrompropertiesIncomefrominvestmentsTransferfromTradingOperations

14.80.2

-

3.40.1

40.0

18.20.3

40.0

17.80.3

44.9TOTAL INCOMING RESOURCES 15.0 43.5 58.5 63.0EXPENDITURECosts of generating fundsOtherresourcesexpendedExpenditure on charitable activitiesTransferoffundstotherestoftheUniversity:-Cash-Property-Benefitsinkind

(8.4)

--

(1.0)

(1.1)

(40.0)(2.3)

-

(9.5)

(40.0)(2.3)(1.0)

(9.2)

(44.9)-

(1.0)TOTAL EXPENDITURE (9.4) (43.4) (52.8) (55.1)Gainsoninvestmentproperties 8.0 6.8 14.8 15.8NET INCOMETransferbetweenfunds

13.6(9.0)

6.99.0

20.5-

23.7-

NETINCOMING/(OUTGOING)RESOURCESFORTHEYEARCurrencytranslationdifferencesonforeigncurrencynetinvestments

4.6

11.3

15.9

-

20.5

11.3

23.7

1.4NET MOVEMENT IN FUNDSRECONCILIATION OF FUNDSTOTAL FUNDS BROUGHT FORWARD

15.9

195.4

15.9

100.3

31.8

295.7

25.1

270.6TOTAL FUNDS CARRIED FORWARD 211.3 116.2 327.5 295.7

Theresultsrelatetocontinuingoperations.


The following statements are unaudited and provided for information only

Consolidated & OUP Statement of Comprehensive Income

For the year ended 31 July 2017

ConsolidatedUniversity

£'m

CombinedOUP£'m

Adjustments

£'mTOTAL

£'mIncomeTuitionfeesandeducationcontractsFundingbodygrantsResearchgrantsandcontractsOtherincomeInvestmentincome

307.2194.6564.9227.7

14.4

---

874.719.3

---

(41.3)-

307.2194.6564.9

1,061.133.7

Total income before donations 1,308.8 894.0 (41.3) 2,161.5 DonationsandendowmentsDonationofheritageassets

88.43.2

--

--

88.43.2

Total Income 1,400.4 894.0 (41.3) 2,253.1 ExpenditureStaffcostsStaffcosts-movementinpensionsprovisionOperatingexpenditurePublishingcostsDepreciation/AmortisationInterestandotherfinancecosts

714.8(6.5)

576.2-

102.69.9

-(1.7)10.6

736.222.2

4.3

--

(1.3)---

714.8(8.2)

585.5736.2124.8

14.2Total Expenditure 1,397.0 771.6 (1.3) 2,167.3Surplus/(Deficit) before other gainsGainsoninvestmentsShareofsurplus/(deficit)onJointVentures

3.4 218.1

(0.2)

122.4 14.8

0.1

(40.0)--

85.8 232.9

(0.1)Surplus before tax 221.3 137.3 (40.0) 318.6 Taxation (1.6) (17.4) - (19.0)Surplus after tax 219.7 119.9 (40.0) 299.6 TransfertoUniversityChangesinPensionschemeliabilityMinorityInterestchangesEffectiveportionofchangesinfairvalueofcashflowhedgesCurrencytranslationdifferencesonforeignexchange

-----

(40.0)(87.1)

1.5

8.5

(5.2)

40.0--

-

-

-(87.1)

1.5

8.5

(5.2)Total Comprehensive Income 219.7 (2.4) - 217.3 Represented byUnrestrictedcomprehensiveincomefortheyearEndowmentcomprehensiveincomefortheyearRestrictedcomprehensiveincomefortheyear

129.879.610.3

(2.4)--

---

127.479.610.3

219.7 (2.4) - 217.3


The following statements are unaudited and provided for information only

Consolidated and OUP Balance Sheet

For the year ended 31 July 2017

ConsolidatedUniversity OUP Adjustments TOTAL

£’m £’m £’m £’mNon-current assets

1.21,365.7

85.32,158.5

78.8291.5

-35.0

---

5.8

80.01,657.2

85.32,187.7

IntangibleassetsandgoodwillProperty,plantandequipmentHeritageassetsInvestments

3,610.7 405.3 (5.8) 4,010.2 Current assetsInventoriesTradeandotherreceivables-duewithinoneyear-dueafteroneyearInvestmentsCash&cashequivalents

2.9

232.75.9

109.5287.5

98.1

300.9--

226.2

-

----

101.0

533.65.9

109.5513.7

638.5 625.2 - 1,263.7 Creditors:Amountsfallingduewithinoneyear (535.9) (239.5) - (775.4)Net current assets 102.6 385.7 - 488.3 Total assets less current liabilities 3,713.3 791.0 (5.8) 4,498.5 Creditors:Amountsfallingdueaftermorethanoneyear (260.1) (9.5) - (269.6)Provisions for liabilitiesPensiondeficitrecoveryprovisionsPensiondefinedbenefitschemeOtherprovisions

(194.1)-

(26.8)

-(199.2)

-

---

(194.1)(199.2)

(26.8)Total net assets 3,232.3 582.3 (5.8) 3,808.8 ReservesEndowment Reserves-Permanent-Expendable

828.7160.7

--

828.7160.7

989.4 - - 989.4 Restricted reserves-IncomeandexpenditurereserveUnrestricted reserves-Incomeandexpenditurereserve

88.0

2,154.9

-

582.3

-

(5.8)

88.0

2,731.42,242.9 582.3 (5.8) 2,819.4

Total reserves 3,232.3 582.3 (5.8) 3,808.8

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