1. Tuition fees and education contracts

Consolidated and University
2021 2020
£m £m
Full-time UK students 89.3 86.5
Full-time EU students 13.8 13.8
Full time overseas students 50.2 57.5
Part-time higher education students 8.5 5.7
Short course and apprenticeship fees 2.0 2.4
Research training support grants and other fees 9.8 8.7
173.6 174.6

2. Funding body grants

Consolidated and University
2021 2020
£m £m
Office for Students Recurrent Grants 30.9 28.3
Office for Students Specific Grants 4.2 5.4
Office for Students Capital Grants 4.2 2.6
39.3 36.3

3. Research grants and contracts

Consolidated and University
2021 2020
£m £m
UK Research and Innovation (UKRI) 18.9 19.3
UK charitable bodies 2.5 2.7
European Commission 4.7 4.4
UK central government, Local Authorities or Health Trust 4.4 3.8
UK industry 2.9 3.1
Other sponsors 3.8 3.8
37.2 37.1

4. Other income

Consolidated and University
2021 2020
£m £m
Residences, catering and conferences 21.4 27.1
Other services rendered (note 5) 4.4 5.9
Other income 8.4 13.1
34.2 46.1

5. Other services rendered

Consolidated and University
2021 2020
£m £m
Academic departments and services 1.4 1.4
Sports and related facilities 2.3 3.6
Other 0.7 0.9
4.4 5.9

6. Investment income

Consolidated and University
2021 2020
£m £m
Investment income on endowments 0.1 0.2
Change in the fair value of derivatives (note 20) 1.4 -
Net income and gains from short-term investments 1.2 0.2
Other investment income 0.2 1.0
2.9 1.4

7. Donations and endowments

Consolidated
2021 2020
£m £m
Donations with restrictions 0.3 0.4
Unrestricted donations 2.0 1.8
2.3 2.2
University
2021 2020
£m £m
Donations with restrictions 0.3 0.4
Unrestricted donations 2.0 1.7
2.3 2.1

8. Staff costs

Consolidated
2021 2020
£m £m
Salaries 136.3 141.0
Movement in USS pension provision (3.5) (33.7)
Social security costs 12.5 12.8
Other pension costs 30.4 28.8
175.7 149.0
less: paid on behalf of other organisations (4.8) (4.4)
less: capitalised within the cost of buildings - (0.4)
170.9 144.2
University
2021 2020
£m £m
Salaries 135.6 141.1
Movement in USS pension provision (3.5) (33.7)
Social security costs 12.5 12.8
Other pension costs 30.4 28.8
175.0 144.2
less: paid on behalf of other organisations (4.8) (4.4)
less: capitalised within the cost of buildings - (0.4)
170.2 144.2
Consolidated and University
2021 2020
£m £m
Access and Participation
Access Investment 1.4 1.8
Financial Support 0.1 -
Disability Support (excluding expenditure included in severance payments and key management personnel) 0.3 0.4
Research and Evaluation 0.2 -
2.2 2.2

Further information on staff costs is included within the Annual Report of The Remuneration Committee.

9. Analysis of expenditure by activity

2021 2020
£m £m
Academic departments 114.0 113.8
Academic services 30.8 30.7
Central administration 17.9 18.4
General educational expenditure 18.6 20.2
Staff and student facilities 15.4 14.6
Premises 42.4 41.3
IAAPS land and buildings write down 21.5 -
Residences, retail and catering operations 33.0 37.4
Research grants and contracts 25.0 25.3
Other services rendered 1.0 1.7
Other expenses 1.9 (26.7)
Consolidated 321.5 276.7
University of Bath 320.7 276.6
Consolidated and University
2021 2020
Other Operating Expenses include: £ £
External Auditors Remuneration (Group and University)
Audit Services
Financial statements - subsidiary 10,380 3,000
Financial statements - University 87,840 79,080
Covenant reporting 2,100 2,000
US federal loan reporting 5,400 4,380
105,720 88,460
Consolidated and University
2021 2020
£m £m
Access and Participation
Access Investment 2.2 2.6
Financial Support 4.5 4.3
Disability Support 0.4 0.4
Research and Evaluation 0.3 -
7.4 7.3

Read our access and participation plan (APP).

Access investment

We have underspent by £51,692 in the year 2020/21. This underspend is in large part due to the closure of sports and leisure facilities due to COVID-19 meaning a large proportion of activity could not be delivered causing a predicted underspend of over £250,000. The underspend allowed us to introduce additional activity and partnerships and combined with some of the underspend from Financial Support (below) allowed us to mitigate the understand. Additional in-person activity for students from target groups was run as soon as Covid-19 restrictions allowed. Mini residentials for students forced to defer entry from 2020 to 2021, in-person events for offer holders, additional residential visits for students and their parents and in-person residentials ran. If the predicted numbers of students had attended the summer schools (many had to pull out at the last minute due to spikes in COVID-19 cases) the underspend would have been smaller. New partnerships with Rare and Villiers have allowed us to deliver even more activity to targeted groups.

Financial support

The 2020/21 academic year was impacted by the pandemic. The APP Finance Support budget recorded an overall underspend of £92k. This was primarily due to the low number of recipients eligible for the new Accommodation top-up bursary for those first-year undergraduate students with household incomes between £25k and £42k. The budget projected that 200 students would each be eligible for a £1k waiver from the cost of their University accommodation (responding to a need identified by the University of Bath Students’ Union). The impact of the pandemic meant that only £64k of this bursary was ultimately allocated, as many students were not in residence for the full academic year. There was a slight overspend on other bursary support, as the disruption to employers resulted in more students continuing directly into the final year of their degree instead of taking up a paid placement or internship.

Research and evaluation

The 2020/21 academic year was impacted by the pandemic. The University had an underspend of £193,105 against the budget. A significant amount of the underspend (£89,964) was against the projected funding of the doctoral research studentships. Four of the eight students completed and submitted during this period, whilst two suspended their studies and one was registered for only part of the year having returned from maternity leave. The Admissions Data and Evaluation Officer post also remained vacant during this period; a reorganisation of the Undergraduate Admissions team means that this post has been absorbed into another role, with the new post-holder taking up the position in September 2021. A further evaluation role was left unfilled and the resource used to fund an outreach position – this new role is therefore not included in the Research and Evaluation return.

Disability support for students

The 2020/21 academic year was impacted by the pandemic. The Disability team Head retired, and this resulted in a reorganisation of the line management of the team within the wider Student Services Department. The departure of the team Head accounted for a significant level of the underspend as the role was not replaced, and the reorganisation also resulted in another team member moving to a non-APP countable role. This saving in staffing costs accounts for the underspend from the projected budget.

10. Related party transactions

The financial statements of the University include transactions with related parties. In accordance with FRS 102 these are disclosed where members of the University of Bath’s Council or Key Management Personnel (KMP) disclose an interest in a body with whom the University undertakes transactions which are considered material to the University’s Financial Statements and/or the other party. Due to the nature of the University’s operations and the composition of the Board, being drawn from local public and private sector organisations, it is inevitable that transactions will take place with organisations in which a member of Council or KMP may have an interest. All transactions involving organisations in which a member of Council or KMP may have an interest, including those identified below, are conducted at arms length and in accordance with the University’s Financial Regulations and usual procurement procedures.

An updated register of the interests of the members of Council is maintained.

The University has taken advantage of the exemption within FRS 102 and has not disclosed transactions with other group entities where it holds 100% of the voting rights. Included within the financial statements are the following transactions with related parties:

Income recognised within the financial statements Expenditure recognised within the financial statements Balance due to the University at 31 July recognised within the financial statements Balance due from the University at 31 July recognised within the financial statements
£m £m £m £m
University of Bath Students’ Union - 1.9 0.1 -

University of Bath Students’ Union

The Students’ Union provides a range of services and facilities to the University’s student body. Two members of Council sit on the governing body of the Students' Union.

Reimbursements to members of Council for expenditure incurred whilst carrying out their duties amounted to £633 (2019/20 £5,015). Three members of Council (2019/20 11) claimed expenses during the year.

11. Interest and other finance cost

Consolidated and University
2021 2020
£m £m
Loans not wholly repayable within five years 6.9 7.4
Change in discounted value of future USS payments (note 21) 0.3 1.5
Change in the fair value of derivatives (note 20) - 1.1
LGPS net interest charge (note 26) 1.6 1.4
8.8 11.4

12. Capital commitments

Consolidated and University
2021 2020
£m £m
Provision has not been made for the following capital commitments at 31 July
Capital Commitments
Funded by University funds 35.5 67.4
Capital commitments contracted at 31 July 35.5 67.4

13. Fixed assets

Consolidated
Freehold land and buildings Leasehold land and buildings Equipment Assets in the course of construction Intangible assets Total
£m £m £m £m £m £m
Cost / Valuation
At 1 August 2020 18.3 740.0 95.4 68.6 - 922.3
Additions at Cost 0.1 3.9 8.3 27.0 0.2 39.5
Disposals - - (0.4) - - (0.4)
Revaluations 0.1 4.2 - 3.4 - 7.7
At 31 July 2021 18.5 748.1 103.3 99.0 0.2 969.1
Accumulated depreciation and impairment
At 1 August 2020 1.5 7.9 72.9 - - 82.3
Charge in year 0.4 27.3 4.5 21.5 - 53.7
Disposals - - (0.2) - - (0.2)
Revaluations (1.8) (22.9) - - - (24.7)
At 31 July 2021 0.1 12.3 77.2 21.5 - 111.1
Net book value
At 31 July 2021 18.4 735.8 26.1 77.5 0.2 858.0
At 31 July 2020 16.8 732.1 22.5 68.6 - 840.0

As at 31 July 2021, we revalued all our freehold and leasehold Land and Buildings. This valuation is carried out by Carter Jonas Limited, an external Chartered Surveyor on the basis of Existing Use, Depreciated Replacement Cost or Market Valuation according to the nature and use of each building. The valuation was prepared in accordance with the Valuation Standards published by the Royal Institute of Chartered Surveyors.

The movement in land and buildings values following the revaluation is written back through the reversal of accumulated depreciation charged since the previous valuation exercise.

During the year the University impaired the costs of the IAAPS facility by £21.5m. This facility was substantially complete at the year-end and therefore costs have been compared to a market valuation for the first time, this market value is substantially less than the cost incurred and as a result, we have impaired its cost. Additional disclosure is made in the Financial Review.

University
Freehold land and buildings Leasehold land and buildings Equipment Assets in the course of construction Intangible assets Total
Cost / Valuation £m £m £m £m £m £m
At 1 August 2020 18.4 742.3 95.4 68.6 - 924.7
Additions at Cost 0.1 3.9 8.3 27.0 0.2 39.5
Disposals - - (0.3) - - (0.3)
Revaluations 0.1 4.2 - 3.4 - 7.7
At 31 July 2021 18.6 750.4 103.4 99.0 0.2 971.6
Accumulated deprecation and impairment
At 1 August 2020 1.5 9.7 72.9 - - 84.1
Charge in year 0.4 27.3 4.5 21.5 - 53.7
Disposals - - (0.2) - - (0.2)
Revaluations (1.8) (22.9) - - - (24.7)
At 31 July 2021 0.1 14.1 77.2 21.5 - 112.9
Net book value
At 31 July 2021 18.5 736.3 26.2 77.5 0.2 858.7
At 1 August 2020 16.9 732.6 22.5 68.6 - 840.6

Freehold and Leasehold Land and Buildings measured by valuation at 31 July 2021 includes the following historical cost:

Consolidated and University
2021 2020
£m £m
Freehold land and buildings 12.7 12.6
Leasehold land and buildings 513.6 509.7

Leasehold land and buildings includes land with a value of £41.1 million at 31 July 2021 (£85.8 million at 31 July 2020).

Equipment includes assets donated to us, these are valued at market value as at the date when they were received.

14. Non current asset investments

Consolidated and University
2021 2020
£m £m
At 1 August
Other investments 0.8 1.3
Acquisition of investments 0.1 0.3
Movement in market value 0.9 (0.8)
At 31 July 1.8 0.8

15. Trade and other receivables

University Consolidated Consolidated and University
2021 2021 2020
£m £m £m
Prepayments and accrued income 3.7 3.7 4.2
Amounts receivable from a subsidiary 1.6 - -
Research grant receivables 12.7 12.7 9.5
Other receivables 10.3 10.4 13.0
Other taxation receivables 9.2 9.2 -
37.5 36.0 26.7
Due within one year 35.9 36.0 26.3
Due in more than one year 1.6 - 0.4
37.5 36.0 26.7

Debtors due in more than one year are all Other receivables.

16. Current asset investments

Consolidated and University
Investments measured at Market Value Investments measured at Cost 2021 2020
Total Total
£m £m £m £m
At 1 August 136.4 54.7 191.1 214.5
New investments 13.2 - 13.2 106.4
Disposal of investments (5.4) (26.0) (31.4) (131.2)
Market value movement 9.2 - 9.2 1.4
At 31 July 153.4 28.7 182.1 191.1

Investments measured at market value includes Quoted investments of £106.4m (£89.4m) and those held in unit funds where a market value can be determined of £47.0m (£47.0m).

Investments measured at cost include those held in money market funds, certificates of deposit and fixed deposits.

Current Asset investments include £6.7m (£5.2m) held in respect of Endowments as disclosed in note 22.

17. Creditors: amounts falling due within one year

University Consolidated Consolidated and University
2021 2021 2020
£m £m £m
Bank loans 10.0 10.0 5.0
Trade Payables 24.3 24.3 19.7
Social Security and other taxation payable 6.7 6.7 3.1
Finance lease obligations 0.3 0.3 0.2
Deferred income 74.9 74.9 71.7
116.2 116.2 99.7

Deferred income

Included in deferred income are the following items which have been deferred until specific performance-related conditions are met.

University Consolidated Consolidated and University
2021 2021 2020
£m £m £m
Donations 0.6 0.6 0.9
Research grants received on account 21.7 21.7 18.2
Grant income 42.7 42.7 42.0
Other income 9.9 9.9 10.6
74.9 74.9 71.7

18. Creditors: amounts falling due after more than one year

Consolidated and University
2021 2020
£m £m
Bank loans 224.4 234.5
Derivatives 13.9 17.5
Finance lease obligations 1.7 1.9
240.0 253.9

19. Borrowings

Consolidated and University
2021 2020
Analysis of Financing £m £m
Bank loans and overdrafts are repayable as follows:
In one year or less 10.0 5.0
Between one and two years 5.1 10.1
Between two and five years 15.1 15.1
In five years or more 204.2 209.3
234.4 239.5

20. Derivatives

The University is using hedge accounting for its interest rate swaps and foreign exchange options and as a result determined the effectiveness of the hedging arrangements. The analysis below shows the results of this assessment:

Consolidated and University Consolidated and University Consolidated and University
Hedging Instrument Expiry Date Amount Market Value at Market Value at Movement in market value Disposals in year Total Movement Movement in market value
2021 2020 2021 2021 2021 2020
£m £m £m £m £m £m
Interest rate swaps Between 2027 and 2037 £35.5m 13.9 17.5 (3.6) - (3.6) 1.6
Foreign exchange options In 2020 $60.7m (1.3) (0.8) (1.3) 0.8 (0.5) (0.9)
12.6 16.7 (4.9) 0.8 (4.1) 0.7

Interest rate swaps are hedging instruments associated with the University’s loan portfolio with Lloyds Bank plc and Barclays Bank plc Foreign Exchange options are hedging instruments associated with our current asset investments in USD denominated funds.

The movement in market value for 2020/21 is a loss of £4.9m (2019/20 loss of £0.7m) is reported as follows:

Consolidated and University
2021 2020
£m £m
Interest Payable (note 11) - 1.2
Interest Receiveable (note 6) (1.4) -
Other Comprehensive Income (3.5) (0.5)
(4.9) 0.7
Consolidated and University
2021 2020
£m £m
Disclosure of Derivatives
Other receivables due in less than one year 1.3 0.8
Liabilities due in more than one year 13.9 17.5

21. Provisions

Consolidated and University
Obligations to fund deficit on USS Pension (note 26) Defined Benefit obligations LGPS (note 26) Total 2021 Total 2020
£m £m £m £m
At 1 August 44.3 99.5 143.8 147.8
Released in year (3.5) - (3.5) (33.7)
Additions in year 0.3 5.4 5.7 6.0
Interest in year - 1.6 1.6 1.4
Actuarial loss in respect of pension - (9.5) (9.5) 22.3
At 31 July 41.1 97.0 138.1 143.8

Obligations to fund deficit on USS Pension

The obligation to fund the past deficit on our Superannuation Scheme (USS) arises from the contractual obligation with the pension scheme for total payments relating to benefits arising from past performance. Management has assessed future employees within the USS scheme and salary payments over the 15 year period of the contracted obligation in assessing the value of this provision and these are disclosed below:

2021 2020
Discount rate at year end 0.89% 0.74%
Pensionable salary growth 2.4% for the duration of the plan 1.5% for the first two years and 2.4% thereafter
USS membership growth 1.0% for the duration of the plan in the range (1.5%) to 1%

Defined benefit obligations (LGPS)

As a multi-employer scheme where the share of assets and liabilities applicable to each employer can be defined, we have accounted for the scheme under FRS 102 as a defined benefit scheme based on a full actuarial valuation of the Fund as at 31 March 2019.

22. Endowments

Restricted net assets relating to endowments are as follows:

Consolidated and University
2021 2020
Restricted Permanent Expendable Total Total
£m £m £m £m
At 1 August
Capital 2.0 4.0 6.0 6.4
Accumulated Income 0.3 0.8 1.1 1.0
2.3 4.8 7.1 7.4
Investment and donation income 0.1 0.2 0.3 0.2
Expenditure (0.1) (0.3) (0.4) (0.1)
(Decrease) Increase in market value of investments 0.4 0.7 1.1 (0.4)
At 31 July 2.7 5.4 8.1 7.1
Representing:
Capital 2.4 4.7 7.1 6.1
Accumulated Income 0.3 0.7 1.0 1.0
2.7 5.4 8.1 7.1
Analysis by type of purpose
Lectureships 1.4 2.5 3.9 3.4
Scholarships and bursaries 1.2 2.5 3.7 3.1
Prize Funds 0.1 0.2 0.3 0.4
General - 0.2 0.2 0.2
2.7 5.4 8.1 7.1
Analysis by asset
Current and non-current asset investments 2.5 4.2 6.7 5.2
Cash and cash equivalents 0.2 1.2 1.4 1.9
2.7 5.4 8.1 7.1

23. Restricted reserves

Reserves with restrictions are as follows:

Consolidated and University
Other income Donations 2021 2020
Total Total
£m £m £m £m
At 1 August 0.5 1.7 2.2 2.1
New grants 0.1 - 0.1 -
New donations - 0.3 0.3 0.5
Expenditure (0.2) (0.5) (0.7) (0.4)
At 31 July 0.4 1.5 1.9 2.2
Analysis by type of purpose
Research support 0.1 - 0.1 0.1
Scholarships and bursaries - 0.7 0.7 0.6
General 0.3 0.8 1.1 1.5
0.4 1.5 1.9 2.2

24. Contingent Liability

We have entered a number of nomination agreements with three organisations whereby we underwrite the shortfall in the letting of a number of student residences, summarised below. We do not expect any liability to be incurred as a result of these contracts as we expect all residences will be fully let as per the nomination agreements.

Dates Residences Legal entity with whom the agreement is held Maximum liability 31 July 2021 Maximum liability 31 July 2020
£m £m
24/09/2016 to 18/09/2021 “Hello Student” Empiric (Bath James House) Limited 0.3 2.2
14/09/2020 to 19/03/2021 Green Park House Bath Spa University - 1.0
16/09/2021 to 15/09/2030 Acquilla Court Eagle One Acqua Sulis Limited and Acquilla MMXX Limited 14.1 13.8
25/09/2021 to 03/09/2022 Twerton Mill Twerton Bath Limited 0.5 -
Total 14.9 17.0

25. Lease obligations

The University had total operating lease commitments in respect of leased property as follows:

Consolidated and University
2021 2020
£m £m
Lease Commitments
Lease commitments due in more than one year but less than two years 5.1 5.0
Lease commitments due between two & five years 20.0 20.4
Lease commitments due in more than five years 24.0 28.9
Total Lease commitments 49.1 54.3

Operating leases are held for six properties used by us as student accommodation. As we do not control the significant residual value in these properties upon the expiry of the lease period they have not been accounted for as Service Concession Arrangements.

The lease arrangements expire between 2024 and 2032, the lease payments are reported in other operating expenses.

26. Pensions

Universities Superannuation Scheme

We participate in the Universities Superannuation Scheme (USS), a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate fund administered by the trustee, Universities Superannuation Scheme Limited. USS has over 203,000 members and we had 2,299 (2,342) active members at 31 July 2021.

USS is a multi-employer scheme and is accounted for as set out in the accounting policies.

The latest available completed actuarial valuation of the Retirement Income Builder is at 31 March 2018 (the valuation date), which was carried out using the projected unit method.

The 2018 valuation was the fifth valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £63.7 billion and the value of the scheme’s technical provisions was £67.3 billion indicating a shortfall of £3.6 billion and a funding ratio of 95%.

The key financial assumptions used in the 2018 valuation are described below. More detail is set out in the Statement of Funding Principles.

Pension increases (CPI)

Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves, less 1.3% p.a.

Discount rate (forward rates)

  • Years 1-10: CPI +0.14% reducing linearly to CPI –0.73%
  • Years 11-20: CPI +2.52% reducing linearly to CPI +1.55% by year 21
  • Years 21+: CPI +1.55%

The main demographic assumption used relates to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2018 actuarial valuation. The mortality assumptions used in these figures are as follows:

Mortality base table
Pre-retirement 71% of AMC00 (duration 0) for males and 112% of AFC00 (duration 0) for females
Post-retirement 97.6% of SAPS S1NMA “light” for males and 102.7% of RFV00 for females
Future improvements to mortality CMI_2017 with a smoothing parameter of 8.5 and a long term improvement rate of 1.8% pa for males and 1.6% pa for females

The current life expectancies on retirement at age 65 are:

2021 2020
Males currently 65 yrs 24.6 24.4
Females currently 65 yrs 26.1 25.9
Males currently 45 yrs 26.6 26.3
Females currently 45 yrs 27.9 27.7

A new deficit recovery plan was put in place as part of the 2018 valuation, which requires payment of 2% of salaries over the period 1 October 2019 to 30 September 2021 at which point the rate will increase to 6%. The 2021 deficit recovery liability reflects this plan. The liability figures have been produced using the following assumptions:

2021 2020
Discount rate 0.89% 0.74%
Pensionable salary growth 1.5%-2.40% 4.20%

To illustrate how sensitive the funding level is to experience being different from assumed, the table below shows how the valuation results at 31 March 2018 would have differed given small changes in the key assumptions.

Assumption Change in Assumption Change in shortfall
Discount rate Increase by 0.1% Reduce by £1.2 billion
RPI/CPI Spread Increase by 0.1% Reduce by £0.7 billion
Life expectancy Higher than assumed* Increase by £1.6 billion
Asset values Fall by 10% Increase by £6.4 billion

*Assumes member life expectancy is consistent with someone one year younger than their current age (i.e. a 60 year old is observed to have the life expectancy of someone aged 59).

USS is a “last man standing” scheme so that in the event of the insolvency of any of the participating employers in USS, the amount of any pension funding shortfall (which cannot otherwise be recovered) in respect of that employer will be spread across the remaining participant employers and reflected in the next actuarial valuation of the scheme.

Local Government Pension Scheme

We participate in the Avon Pension Fund which is a funded defined benefit pension scheme with the assets held in separate trustee administered funds. The assumptions which have the most significant effect on the determination of contribution levels are as follows:

Return on investments 4.2%
Long-term Salary inflation 3.9%
Pension inflation 2.4%
Valuation date 31 March 2019
Valuation method Projected Unit
Market value of assets at date of last valuation £4,820 million
Market value of assets as a percentage of accrued benefits 95.0%

On the 1 June 2021 the University ceased to enrol new members of staff into the LGPS. The contributions payable by us were equal to 16.5% of total pensionable salaries for the period to 31 May 2021 and 19.3% for the balance of the period to the end of the financial year.

As a multi-employer scheme where the share of assets and liabilities applicable to each employer can be defined, we have accounted for the scheme under FRS 102 as a defined benefit scheme based on a full actuarial valuation of the Fund as at 31 March 2019, updated to 31 July 2021 by a qualified independent actuary.

The material assumptions used by the actuary were:

At end of year 31 July 2021 31 July 2020
% %
Rate of CPI inflation 2.6 2.3
Rate of increase in salaries 4.1 3.8
Rate of increase in pensions 2.7 2.4
Discount rate 1.6 1.6

Post retirement mortality assumptions for members retiring in normal health

31 July 2021 31 July 2020
Non-retired members (male) S2PA CMI_2018_[1.75%] 98% S2PA CMI_2018_[1.75%] 98%
Non-retired members (female) S2PA CMI_2018_[1.75%] 88% S2PA CMI_2018_[1.75%] 88%
Retired members (male) S2PA CMI_2018_[1.75%] 92% S2PA CMI_2018_[1.75%] 93%
Retired members (female) S2PA CMI_2018_[1.75%] 87% S2PA CMI_2018_[1.75%] 85%
Life expectancy
Male/female future pensioner 65 in 20 years time 24.8/27.4 years 24.7/27.3 years
Male/female current pensioner aged 65 23.3/25.4 years 23.2/25.3 years

The sensitivities regarding the principal assumptions used to measure our share of the scheme liabilities as at the valuation on 31 July 2021 are set out below:

Assumption Change in Assumption Impact on scheme liabilities
Discount rate Increase by 0.1% Decrease by £4.3 million
Rate of CPI Inflation Increase by 0.1% Increase by £4.4 million
Rate of salary growth Increase by 0.1% Increase by £0.3 million
Members live longer 1 year longer Increase by £8.0 million
Our University’s share of the scheme’s assets and liabilities
2021 2020
£m £m
Market value of assets 150.5 130.5
Present value of scheme liabilities (247.5) (230.0)
Net pension liability (97.0) (99.5)
Amounts charged to SOCI
Included in staff costs and operating expenses for the year (note 8) 2021 2020
£m £m
Current service cost 8.8 8.2
Past service cost - 0.8
Administration expenses 0.1 0.1
Total operating charge 8.9 9.1
Analysis of amount charged to interest payable
2021 2020
£m £m
Net interest charge (note 11) 1.6 1.4
Net charge 1.6 1.4
Amounts recognised in the Statement of Comprehensive Income
2021 2020
£m £m
Change in assumptions underlying the present value
of the scheme assets 17.8 (7.8)
of the scheme liabilities (8.3) (14.5)
Actuarial gain/(loss) recognised in the SOCI 9.5 (22.3)

The movement in the scheme's deficit during the year is made up as follows:

2021 2020
£m £m
Deficit in scheme at 1 August 99.5 71.3
Movement in the year:
Current service and curtailment costs 8.8 8.2
Contributions by the employer (3.5) (4.6)
Past service cost - 0.8
Administrative charge 0.1 0.1
Net interest charge 1.6 1.4
Actuarial loss (9.5) 22.3
Deficit in scheme at 31 July 97.0 99.5
Analysis of the movement in the present value of the scheme liabilities
2021 2020
£m £m
At the beginning of the year 230.0 205.1
Current service cost 8.8 8.2
Interest on pension liabilities 3.6 4.3
Member contributions 1.3 1.3
Past service cost - 0.8
Actuarial losses on liabilities - other 8.3 14.5
Curtailments 0.1 -
Benefits/transfers paid (4.6) (4.2)
At the end of the year 247.5 230.0
Analysis of the movement in the market value of the scheme assets
2021 2020
£m £m
At the beginning of the year 130.5 133.8
Expected return on plan assets 2.1 2.8
Actuarial (losses)/gains on assets 17.8 (7.8)
Administrative expenses (0.1) (0.1)
Contributions by the employer 3.5 4.6
Contributions by scheme participants 1.3 1.3
Benefits/transfers paid (4.6) (4.1)
At the end of the year 150.5 130.5
Analysis of the scheme assets
2021 2020
£m £m
Equities 64.3 57.7
Government bonds 14.6 9.4
Other bonds 12.2 3.5
Property 9.5 11.5
Cash/liquidity 2.7 3.9
Other 47.2 44.5
At the end of the year 150.5 130.5
University total pension costs (note 8)
2021 2020
£m £m
Universities Superannuation Scheme: employer only contributions 20.9 20.8
Universities Superannuation Scheme: provision movement (3.5) (33.7)
17.4 (12.9)
Avon Pension Fund 9.3 9.2
Contributions to other pension schemes 0.1 0.1
Total pension costs 26.9 (3.6)

27 Post balance sheet event

Universities Superannuation Scheme

The movement in the USS pension provision and charge of £3.5m reflected on the face of SOCI is based on the scheme valuation at 31 March 2018. On 1 October USS signed and filed the USS 2020 valuation with the Pensions Regulator. The 2020 valuation has longer duration and higher deficit recovery contributions than the 2018 valuation.

We estimate the USS liability at 31 July 2021 under the 2020 valuation to be £119.2m and the resulting £76.9m adjustment will be reported as a debit against staff costs in the year ending 31 July 2022.

28 US Department of Education Financial Responsibility - Supplemental Schedule

In satisfaction of its obligations to facilitate students’ access to US federal financial aid, we are required by the US Department of Education to present the following Supplemental Schedule in a prescribed format.

The amounts presented within the schedules have been:

  • prepared under the historical cost convention, subject to the revaluation of certain fixed assets
  • prepared using United Kingdom generally accepted accounting practice, in accordance with Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice: Accounting for Further and Higher Education (2019 edition)
  • presented in pounds sterling

The schedules set out how each amount disclosed has been extracted from the financial statements. As set out above, the accounting policies used in determining the amounts disclosed are not intended to and do not comply with the requirements of accounting principles generally accepted in the United States of America.

Primary reserve ratio

Line item - related disclosures Expendable net assets Year ended 31 July 2021 Year ended 31 July 2020
£ £
Statement of Financial Position - Net assets without donor restrictions Net assets without donor restrictions 578,559,170 555,766,258
Statement of Financial Position - Net assets with donor restrictions Net assets with donor restrictions 10,014,561 9,404,328
Statement of Financial Position - Property, Plant and equipment, net (note 13) Property, plant and equipment, net (includes Construction in progress) 858,087,793 840,063,223
Note of the Financial Statements - Statement of Financial Position - Property, plant and equipment - pre-implementation Property, plant and equipment - pre-implementation 818,623,929 773,805,910
Note of the Financial Statements - Statement of Financial Position - Property, plant and equipment - post-implementation without outstanding debt for original purchase (note 13) Property, plant and equipment - post-implementation without outstanding debt for original purchase 12,398,140 20,699,308
Note of the Financial Statements - Statement of Financial Position - Construction in progress (note 13) Construction in progress 77,476,818 68,541,544
Statement of Financial Position - Postemployment and pension liabilities Post-employment and pension liabilities 138,179,723 143,834,767
Statement of Financial Position - Note Payable and Line of Credit for long-term purposes (both current and long term) and Line of Credit for Construction in process Long-term debt - for long term purposes 250,238,689 259,128,944
Statement of Financial Position - Note Payable and Line of Credit for long-term purposes (both current and long term) and Line of Credit for Construction in process Long-term debt - for long term purposes pre-implementation 250,238,689 259,128,944
Statement of Financial Position - Perpetual Funds (note 22) Net assets with donor restrictions: restricted in perpetuity 8,138,906 7,147,282
Line item - related disclosures Total expenses and losses Year ended 31 July 2021 Year ended 31 July 2020
£ £
Statement of Activities - Total Operating Expenses (Total from Statement of Activities prior to adjustments) Total expenses without donor restrictions - taken directly from Statement of Activities 324,993,338 310,303,351
Statement of Activities - Non-Operating (Investment return appropriated for spending), Investments, net of annual spending gain (loss), Other components of net periodic pension costs, Pension-related changes other than net periodic pension, changes other than net periodic pension, Change in value of split-interest agreements and Other gains (loss) - (Total from Statement of Activities prior to adjustments) Non-Operating and Net Investment (loss) 10,167,195 600,732
Pension-related (credits)/ changes other than net periodic costs 12,962,610 11,328,462

Equity ratio

Line item - related disclosures Modified net assets Year ended 31 July 2021 Year ended 31 July 2020
£ £
Statement of Financial Position - Net assets without donor restrictions Net assets without donor restrictions 578,559,170 555,766,258
Statement of Financial Position - total Net assets with donor restrictions Net assets with donor restrictions 10,014,561 9,404,328
Line item - related disclosures Modified assets £ £
Statement of Financial Position - Total Assets Total Assets 1,082,887,662 1,062,605,733

Net income ratio

Line item - related disclosures Year ended 31 July 2021 Year ended 31 July 2020
£ £
Statement of Changes in Reserves - total of movement shown for Income & Expenditure Reserve and Revaluation Reserve Change in Net Assets Without Donor Restrictions 23,450,072 (16,186,956)
Statement of Activities - (Net assets released from restriction), Total Operating Revenue and Other Additions and Sale of Fixed Assets, gains (losses) Total Revenue and Gains 289,451,747 297,660,552