1. Tuition fees and education contracts

2. Funding body grants

3. Grant and fee outcome

4. Research grants and contracts

5. Other income

6. Other services rendered

7. Investment income

8. Donations and endowments

9. Staff costs

Professor Ian White’s basic salary was 8.8 (2021-22 8.0) times the median pay of staff and 14.7 (2021-22 14.6) times the lowest pay of staff, where median and lowest pay are calculated on a full-time equivalent basis for the salaries paid to our staff. Professor Ian White’s total remuneration was 8.3 (2021-22 7.3) times the median total remuneration and 16.7 (2021-22 16.5) times the lowest total remuneration, where median and lowest total remuneration are calculated on a full-time equivalent basis for the total remuneration paid to our staff.

The Vice-Chancellor’s starting salary, set out in his offer letter of August 2018, was based on the then median of the agreed comparator group of universities against which we measure our performance and with reference to the relevant Universities and Colleges Employers Association (UECA) salary benchmark data. Contractually there was to be no individual salary review before the third anniversary of his appointment, and there is no entitlement to any bonus payments.

The third anniversary of his start date of April 2019 having now passed, the committee considered the current position and noted that movement in the benchmark rates meant that the Vice-Chancellor was now paid below the median point. In addition the committee considered performance over the past three years against the personal objectives as set by Council and noted the significant progress which the University had made under his leadership during some particularly challenging times. The Committee also took into consideration the positive external recognition that the University was now receiving, most notably being named as The Times and Sunday Times University of the Year and concluded that the above adjustment was appropriate.

The third-anniversary pay award was decided the Remuneration Committee in October 2022, but backdated to the effective date of 8 April 2022 which affects the in-year figures. The market and contribution related increase in salary was equivalent to 7.7% for the first three years of appointment.

Remuneration of other higher paid staff

Remuneration of other higher paid staff, excluding employer's pension contributions and before salary sacrifice are:

In accordance with OfS guidance, this table only includes staff who completed the full year in post.

The net increase of 19 staff is a combination of recruitments, exits and changes bringing staff into this group for the first time. The main change is that 17 Professors have moved into the £100k+ range as a result of introducing the new Professorial remuneration system.

Included in the above total are two members of staff partially employed by the University’s subsidiary, IAAPS Ltd.

Included within the above full time equivalent totals are 28 (2021-22 24.7) staff employed by the University’s subsidiary IAAPS Ltd.

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling our activities. The definition of key management personnel has been updated in 2022-23 and it now corresponds to the membership of University Executive Board Standing Group. Positions held by our key management personnel are:

• Vice-Chancellor & President
• Deputy Vice-Chancellor & Provost
• Pro-Vice-Chancellor (Education and Global)
• Pro-Vice-Chancellor (Research and Enterprise)
• Pro-Vice-Chancellor (Student Experience)
• Vice-President (Community & Inclusion)
• Vice-President (Enterprise)
• Vice-President (External Relations)
• Chief Operating Officer
• Director of Finance
• Director of Human Resources

Compensation includes remuneration and all employer benefits paid or payable in exchange for services provided by our key management personnel in the year.

The comparative totals for 2021-22 have been revised to reflect the updated definition of key management personnel.

The overall change in cost is mainly due to changes in personnel which resulted in key positions being vacant for part of the preceding year.

Severance payments include a mixture of redundancy costs, typically at the end of a fixed-term contract, settlement agreements and individually agreed exits.

Access and participation staff costs

10. Analysis of expenditure by activity

Read our access and participation plan (APP).

Access Investment

We invested more (£0.16m) on our Access work for the year 2022-23. The increase compared with 2021-22 is for increased staff costs.

Financial Support

The increase from 2021-22 (£0.2m) is due to more students being eligible for an accommodation bursary.

Disability Support for Students

We have invested more in disability support for students than the target within the APP. In the year there have been increased numbers of students requiring disability support, including:

• exam adjustments
• diagnostic assessments (eg for ADHD)
• access to specialist 1:1 support that isn’t funded by the Disabled Students’ Allowance (DSA)

In addition, we supported more graduating students with the transition out of University, as well as increased activity during the summer.

Research and Evaluation

Our approach to research and evaluation has strengthened in the year, including the introduction of a new Widening Participation (WP) Research Standing Group.

11. Related party transactions

The financial statements of the University include transactions with related parties. In accordance with Financial Reporting Standard (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.

See an updated register of the interests of the members of Council.

Reimbursements to members of Council and Audit and Risk Assurance Committee (ARAC) for expenditure incurred whilst carrying out their duties amounted to £3,954 (2021-22 £3,003). Seven members of Council (2021-22 six members of Council and one member of ARAC) claimed expenses during the year.

The University has taken advantage of the exemption within FRS102 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:

University of Bath Students’ Union

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

12. Interest and other finance cost

13. Fixed assets

As at 31 July 2023, we revalued on-site student accommodation and 33% of our remaining freehold and leasehold Buildings. Carter Jonas Limited, an external Chartered Surveyor revalued all buildings carried at market value and a sample of leasehold buildings valued using Existing Use or Depreciated Replacement Cost according to the nature and use of each building. The University applied the same valuation methodology to the leasehold buildings that were not part of the sample so that leasehold buildings are valued at fair value at 31 July 2023. The Carter Jonas valuation was prepared in accordance with the Valuation Standards published by the Royal Institute of Chartered Surveyors.

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

Provision has not been made for capital commitments funded by University funds, of £59.6m (2021-22 £21.7m) that were contracted at 31 July.

Freehold and Leasehold Land and Buildings measured by valuation at 31 July 2023 includes the following historical cost:

Leasehold land and buildings includes land with a value of £41.1m at 31 July 2023 (£41.1m at 31 July 2022).

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

15. Trade and other receivables

16. Current asset investments

Investments measured at market value include quoted investments of £86.1m (2021-22 £96.6m) and those held in unit funds where a market value can be determined of £12.0m (2021-22 £35.0m).

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

Current Asset investments include £5.9m (2021-22 £6.2m) held in respect of Endowments as disclosed in note 22.

17. Creditors: amounts falling due within one year

Deferred income

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

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

19. Borrowings

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:

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 United States Dollar (USD) denominated funds. The movement in market value is reported as follows:

21. Pension provisions

22. Endowments

Restricted net assets relating to endowments are as follows:

23. Restricted reserves

Reserves with restrictions are as follows:

24. Contingent liability

We have entered a number of nomination agreements with five 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.

25. Lease obligations

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

Operating leases are held for eight properties (2021-2022 eight) 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 2049, the lease payments are reported in other operating expenses.

The commitments above reflect minimum price increases, based on Consumer Price Index (CPI), which are capped by many agreements, typically, between 4% and 5%.

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 528,000 members and we had 2,476 (2021-22 2,276) active members at 31 July 2023. 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 Scheme is as at 31 March 2020 (the valuation date), which was carried out using the projected unit method.

The 2020 valuation was the sixth 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 £66.5 billion and the value of the scheme’s technical provisions was £80.6 billion indicating a shortfall of £14.1 billion and a funding ratio of 83%.

The key financial assumptions used in the 2020 valuation are described below. More detail is set out in the Statement of Funding Principles.

CPI assumption

Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves, less 1.1% per annum to 2030, reducing linearly by 0.1% per annum to a long-term difference of 0.1% per annum from 2040.

Pension increases (subject to a floor of 0%)

CPI assumption plus 0.05%.

Discount rate (forward rates)

Fixed interest gilt yield curve plus:

• Pre-retirement 2.75% per annum
  
• Post-retirement 1.00% per annum

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 2020 actuarial valuation. The mortality assumptions used in these figures are as follows:

The current life expectancies on retirement at age 65 are:

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 have assessed future employees within the USS scheme and salary payments over the 15 year period ending 31 July 2038 of the contracted obligation to maintain employer contributions at 6.3% to assess the value of this provision.

The liability figures have been produced using the following assumptions:

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:

The contributions payable by us were 19.3% of pensionable pay up to March 2023 and 20.7% of pensionable pay from April 2023.

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 2022, updated to 31 July 2023 by a qualified independent actuary.

The material assumptions used by the actuary were:

Post retirement mortality assumptions for members retiring in normal health

The sensitivities regarding the principal assumptions used to measure our share of the scheme liabilities as at the valuation on 31 July 2022 are set out below:

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

27. Post balance sheet event

In September 2023 we bought two student accommodation properties, Scala and Eveleigh Waterside for £32.2m. This brings an additional 150 rooms into our student accommodation estate. All rooms are fully occupied by 2023-24 students.