1

Cardiff University

Annual Report and Financial

Statements

Year Ended 31 July 2022

Statutory Information

Charity Name:

Cardiff University

Charity Registration Number:

1136855

Registered Office:

CF10 3AT

2

CONTENTS

Chair of Council’s Introduction

3

University Strategic Plan

4

Vice Chancellor’s Review

6

Key Trends in Higher Education

14

Major Committees and University Executive Board

15

Remuneration Statement

23

Financial Review

Environmental reporting

24

29

Public Benefit Statement

32

Statement of Corporate Governance

34

Council Membership

37

Statement of Internal Controls and Principal Risks

39

Responsibilities of the Council of Cardiff University

42

Independent Auditors’ Report

43

Consolidated and Institution Statements of Comprehensive Income

49

Consolidated and Institution Statements of Changes in Reserves

50

Consolidated and Institution Statements of Financial Position

51

Consolidated and Institution Statements of Cash-Flow

52

Notes to the Financial Statements

53

Chair of Council’s Introduction

3

The challenges Cardiff University has faced over the

last 12 months have been varied and unpredictable.

While the pandemic rumbled on, other external

forces such as the cost of living and the impact of

the war in Ukraine came to the fore.

During this time, it has been a real privilege to lead

Council.

Thanks

are

due

to

the

Vice-Chancellor

and

University

Executive

Board

for

continuing

to

navigate the path through the pandemic with the

safety of our community at the forefront of their

actions.

They also reacted quickly to the situation in Ukraine,

pledging £1m over the next three years to support

academics and students in the country who have

been affected by the war.

The University increased the support available to

students via its hardship funds in response to the

cost-of-living crisis. I’m glad Council was able to

approve this vital funding which means students

most in need have access to over £1m in additional

support.

Over the year, Council continued to provide steady

support for the University’s aims and vision. That

support comes in the form of appropriate scrutiny

and governance of the University’s strategy and

activities.

Council met seven times during the period, with

three special meetings and four development

sessions. These development sessions allowed

Council to focus on issues such as the climate

emergency, the health and wellbeing of staff, and

the impact of Covid-19 on the University’s strategy.

As the immediacy of the threat posed by the Covid-

19 pandemic recedes, Council has now approved

the return to the full reporting of the University’s

strategy, with some enhancements to reflect the

Recast Way Forward. This will give us a fuller

understanding of the University’s performance in

our post-pandemic world.

Council continued to monitor the University’s Capital

Investment Plan. It has been very rewarding to see

the Centre for Student Life and Abacws buildings

fully operational and now integral parts of the

University’s campus. They were joined by sbarc/

spark, a state-of-the-art building at the heart of the

University’s Cardiff Innovation Campus which brings

together social science researchers, entrepreneurs,

student start-ups and academic spinouts, and the

Translational Research Hub, a multi-million-pound

facility where industry and scientists from the worlds

of catalysis and compound semiconductors work

together to solve commercial challenges. Together,

these incredible buildings are investing in our

people, places, and partnerships.

Over the last year, Council has approved a number

of

notable

appointments.

Perhaps

of

most

significance is the journey to recruit a new Vice-

Chancellor when Professor Colin Riordan retires at

the end of the 2023 academic year. Council

approved the initiation of a Joint Committee of

Council and Senate as part of this and the

recruitment process is now underway.

On a personal level, I can’t leave the University’s

graduation celebrations unrecognised. The class of

2020 and 2021 – who had their in-person

ceremonies postponed because of Covid-19 - joined

the class of 2022 for a magnificent, showpiece

event on campus and at the Principality stadium in

July.

Covid-19 presented us with some unprecedented

challenges in terms of this year’s ceremonies, and

we rose to meet them. The University went the extra

mile to ensure our students and their families had a

truly memorable day that matched their hard work

and achievement.

This was Cardiff University at its best, and on behalf

of the Council I’m keen to recognise and salute the

contributions of everyone involved.

Patrick Younge

Chair of Council

University Strategic Plan

4

The Way Forward 2018-2023: Recast

COVID-19

The University reviewed its strategic plan in

response to Covid-19 at the start of the pandemic,

adapting its strategic priorities to the new reality

faced by society. The University recast its Way

Forward strategy as set out below.

the UK and the world. By fulfilling our vision our

objective is to become one of the top 100

universities in the World and the top 20 in the UK.

Our priority must be the health and wellbeing of our

students and staff. To secure this, we must be

financially sustainable. As we take forward the

interdependent priorities of health and wellbeing

and financial sustainability, we must ensure that the

quality

and

integrity

of

our

academic

and

educational

activity

remain

paramount.

The

changed circumstances will have profound effects

in terms of our performance and how we assess

progress. League table position will not be the

primary concern. Instead, we must ensure that we

survive and thrive.

Our Values

We will operate according to the Nolan Principles of

Public Life and furthermore be guided by the

following values: institutional autonomy; freedom of

enquiry; collegiality, leadership, and management;

equality, diversity, and inclusion; environmental

sustainability; financial resilience; and civic mission.

Education and students

We will re-prioritise activity to provide our students

with the highest quality experience possible given

the constraints of the Covid-19 crisis, whilst

preserving our academic standards and integrity.

Learning environment: We will move forward on

plans to enhance our online and blended offering to

ensure we are agile enough to deliver programmes.

Student experience: The priorities for the University

will remain enhancement of the student experience,

retention, and outcomes successes of our students.

Student success: Work to support careers and skills

will continue. The University will take forward the

planning and implementation of its newly drafted

Widening Participation Strategy. Work on this will

continue,

supporting

students

from

socio-

economically deprived and educationally disrupted

backgrounds to engage, achieve and succeed at

Cardiff University.

Teaching

excellence:

Work

on

supporting

academics and those who support learning and

teaching will continue, with progress being made on

the Academic CPD Framework and achievement of

Advance HE accreditation, although timeframes for

implementation may be changed.

Academic standards: The priority here will be the

maintenance of academic standards due to the

significant variation which has been introduced as a

result of Covid-19.

Civic mission

In the same way as Cardiff University reacted to

major societal challenges of the 20th Century, the

current

social

and

health

crisis

caused

by

coronavirus requires the University to reshape our

civic mission to help government, health services

and wider society to revive and renew the Welsh

economic,

social,

and

cultural

landscape.

Supporting job creation will be of paramount

importance given the economic impact of the virus.

Innovation in education is more prominent than ever

and we will continue our contributions to this. Our

partnership with the NHS will achieve very much

greater salience. We will continue to work to

enhance the Welsh-language culture of our campus

in line with our new Welsh-Language Strategy.

International

We maintain and continue to build international

relationships to position ourselves for the future. We

will explore the extent to which we can learn from

current changes in learning and teaching practices

regarding international travel and reduce the level

of international travel relating to conferences and

fieldtrips. We will continue to focus on maintaining

and building strong relationships with international

partner universities by remote methods. The

international summer school programme will be

adapted to the changing circumstances, with

modified means of delivery as necessary. We will

continue

to

support

our

staff

to

develop

international collaborations that ensure success in

a

changing

international

research

funding

landscape.

University Strategic Plan

5

Research

We will mitigate the immediate impact of Covid-19

on research by encouraging staff to work on

research outputs deliverable remotely. Enhanced

support

for

staff

and

postgraduate

research

students will be considered, depending upon the

financial resilience of the University. We will

minimise potential financial impacts of Covid-19 on

our research by working closely with funders,

external partners and governments to ensure

deliverable research outcomes, as well as consider

matched-funding commitments to research. We will

reconsider our research strategy in light of the long-

term challenges to the financial sustainability of

research and the likely scale and direction of future

research funding post-Covid-19.

Innovation

We have completed our research related building

projects and the Cardiff Innovation Campus to

position ourselves effectively for post-Covid-19

revival and renewal opportunities. This includes

reworking

of

business

cases

for

our

major

Innovation projects to ensure that these are aligned

to new funding opportunities and positioned

strategically. We will work closely with local

authorities, the Cardiff Capital Region, third sector

and Welsh Government to develop major strategic

initiatives able to deliver major economic benefit to

the region. This will include developing new private

and public sector collaborations for a post-Covid-19

world,

in

alignment

with

UK

research

and

development priorities.

Assessing our progress

Now, as we learn to live with the threat faced by

Covid-19, we will continue to be guided by our recast

strategy and monitor the critical success factors

within it, but in the year ahead we will also turn our

attention to reporting against an enhanced, broader

set of KPIs. Our attention must remain strategically

focused on the following: the health and wellbeing

of our staff and students; financial sustainability,

especially fee revenue, cost base and the cash

position; student satisfaction and experience;

research grants and contracts; civic mission and our

contribution to rescue, revive and renew.

Vice-Chancellor’s Review

6

While COVID-19 continued to affect our day-to-day

activities in the first half of the academic year, by the

second semester the position was much improved

despite the continuing waves of omicron. Some

blended learning continued, but the move to use our

teaching spaces to full capacity was welcomed by

our students. We are not complacent, however, and

precautions such as much improved ventilation

remain in place and will do so until the risk has

reduced further.

After nearly two years of playing a pivotal role in

keeping our campus safe, our Covid-19 Screening

Service ceased operating. We were one of the first

and, ultimately, relatively few universities in the UK

to offer free asymptomatic testing for staff and

students. This is what allowed us to understand how

coronavirus was developing at Cardiff and to issue

early warnings that helped close down outbreaks as

soon as possible. I would like to express the

gratitude of the whole University to everybody

involved in the service. It was a huge success and

an achievement of which we can be collectively

proud.

Our position as one of the UK’s leading research-

intensive universities was confirmed in May with the

release of the Research Excellence Framework

(REF) 2021 results.

90% of our research was

judged

to

be

world-leading

or

internationally

excellent.

I’ll talk more about these results later on,

but they mean that we can turn our minds to the

future direction of research at Cardiff with optimism

and confidence, knowing that we will continue to

work together to create research that really matters.

Our

focus

on

student

experience

also

paid

dividends. An improved NSS result saw us increase

our score in Overall Satisfaction by over three

percentage points, which may not sound much but

saw us moving ahead of other universities in the

sector, than other universities in Wales and, than a

number of universities in the Russell Group.

The academic year ended with an ambitious

graduation celebration. The classes of 2020 and

2021, who had seen their graduation ceremonies

postponed because of Covid-19 restrictions, joined

the class of 2022 for a wonderful series of events to

mark their achievements. It was genuinely the most

spectacular example of very large-scale teamwork

that I have ever encountered, and I am immensely

proud of everybody involved. Realising this huge

event and seeing it through to fruition captured the

dedication and commitment that we have to our

students and graduates.

What follows next are some of the highlights from

across the University over the last year, detailing

progress against our strategy, and outlining some of

the principal risks the University faces in the near

future.

Vice-Chancellor’s Review

7

Education

Once again, in the face of coronavirus, our students

have

shown

extraordinary

resilience.

This

generation of students has had a very difficult time

of it through the pandemic and will continue to need

our support for some time to come. Our strategic

focus was rightly on student experience throughout

the year, and to that end, it’s been heartening to see

the Centre for Student Life so well used by our

students. As well as offering very practical support,

and being a home for students between classes, the

Centre is a wonderful symbol of how much

importance we attach to the welfare, wellbeing, and

academic progress of our students.

New student mental health service launches

The HEFCW-funded South-East Wales Mental Health

Partnership began its work, allowing our students,

along with those from other universities in the city,

to be referred to an NHS mental health team based

in our Centre for Student Life. The service ensures

that students who require non-emergency clinical

assessment and treatment will be able to receive it

in

a

timely

and

appropriate

manner,

and

communication between all those involved in

supporting student cases will be made easier. This

is a great step forward for our students and a

significant achievement both for our Student Life

team and for all our partners.

Groundworks

begin

on

University

sports

complex

Work began on brand-new, state-of-the-art facilities

at our Llanrumney Sports Fields that will transform

the site into some of the best sports provision in the

UK. The project – a partnership between the

University, Cardiff Council and Cardiff City House of

Sport - offers a much-needed boost for our students’

sporting experience. It means more students will be

able to benefit from activities that we know can help

enhance

and

maintain

mental

health,

boost

academic achievement, and increase employability

prospects.

Students Save Lives

A group of our student doctors launched what they

believe to be the first scheme of its kind in the world

to teach life-saving skills to students. Students Save

Lives equips students with the basics of CPR. It was

introduced across the University; with the hope it

could eventually be expanded to institutions across

Wales.

North

Wales

medical

degree

programme

doubles intake

More medical students will study for their degree in

north Wales after an expansion in the region’s

training

programme.

The

C21

North

Wales

programme, which is delivered in partnership

between Cardiff and Bangor Universities, allows

students to study in north Wales with a greater focus

on community medicine and a wide range of

placements including a full year at a GP surgery. The

Welsh Government, which funds the initiative,

expanded the intake from 20 students to 40

students in the 2022 intake.

Students part of BBC reporting team for COP26

Two students from our School of Journalism, Media

and Culture produced original stories on climate

change and sustainability as part of the BBC’s

COP26 coverage. Nel Richards and Chloe Blissett

were selected from more than 500 applicants to be

part of the team working to cover the 26th UN

Climate Change Conference of the Parties.

Vice-Chancellor’s Review

8

Research

As I have already mentioned, the last academic year

saw the results of the REF exercise released. In very

good news for Cardiff, the University was ranked

14th in the UK on research power and 19th on

quality. We rank 11th for the reach and significance

of our impact, and 16th for environment and

culture. Ten of our 23 submissions rank in the top

quartile for overall performance. Thirteen of our 23

submissions are ranked in the top quartile for

research impact. Our KPI for REF was to achieve

12th position on research power (the combination

of quality and volume). This was always a stretch

target, and we can be very happy with our 14th

position on that measure, up from 18th last time.

Landmark study reveals new genes associated

with increased risk of Alzheimer’s

A

major

new

international

study

involving

researchers from the University identified 75 genes

associated with an increased risk of developing

Alzheimer’s disease, including 42 new genes which

had not previously been implicated in the condition.

The study also provided compelling evidence to

support a role for inflammation and the immune

system in the disease.

Scientists use vaccination to successfully treat

Covid-19 for the first time

Doctors successfully used vaccination to treat a

patient with Covid-19 in what is thought to be the

first instance of the vaccine being used for therapy

instead of prevention or pre-infection mitigation.

The

patient,

who

has

a

rare

genetic

immunodeficiency, tested positive for Covid-19 for

seven-and-a-half months after catching the virus. It

was finally cleared from his system after clinicians

from the Immunodeficiency Centre for Wales used

two doses of the Pfizer vaccine to treat him while

scientists from Cardiff University monitored his

immune system’s response.

Scientists provide explanation for exceptional

Tsonga Tsunami

An international team, including scientists from the

University,

identified

the

exact

mechanism

responsible for the exceptional tsunami that spread

quickly across the world after the colossal eruption

of the Tonga volcano. They say acoustic-gravity

waves triggered by the powerful volcanic blast,

travelled into the atmosphere and across the ocean.

As these waves converged with each other, energy

was continuously pumped into the tsunami which

caused it to grow bigger and travel much further,

much quicker and for much longer.

Vice-Chancellor’s Review

9

International

We

have

created

and

maintained

strong

relationships

with

our

international

partner

universities through remote methods, and, as the

world opened up again, in person.

We also

continued

to

support

our

staff

to

develop

international collaborations in light of the changing

international research funding landscape.

In a deeply troubling turn of events, international

relations, the economy and, ultimately, the lives and

livelihoods of citizens in Europe and beyond have

been affected by Russia’s invasion of Ukraine. In

common with many universities across the world,

we unequivocally condemned Russia’s catastrophic

aggression

in

Ukraine.

We

announced

ten

undergraduate and ten postgraduate scholarships

for Ukrainian applicants for the academic year

2022-23 and are working with the Council for At

Risk Academics to support Ukrainian academics

seeking refuge in the country.

In parallel we are reviewing our current asylum

seeker scholarship scheme to ensure that it is both

robust and flexible enough to support those

displaced by conflict across the globe.

Partnership with Beijing Normal University

leads to first graduates with dual degree

A trailblazing programme established with Beijing

Normal University saw the first cohort of students

graduate this year with a dual degree. While most

universities in the UK host great numbers of Chinese

students, it is far rarer for students from the UK to

study in China. This innovative programme allows

students to study Mandarin and other China-related

subjects for two years at the Joint College in Cardiff,

before spending two years perfecting their skills and

knowledge in Beijing. These levels of skills and

expertise are vital to the future of this country and

will see our graduates much in demand.

Strategic partnership with the University of

Waikato

International opportunities are being developed

between Cardiff and the University of Waikato in

New Zealand as part of a new strategic partnership.

The agreement, which was signed at simultaneous

events being held at both universities, builds on a

successful Student Exchange agreement between

the two institutions.

Cardiff backs Taith international learning

exchange programme

The University is hosting the Programme Executive

delivering Welsh Government’s new international

learning exchange programme, Taith, which has the

power to help students carve out new career

pathways. Taith (Welsh for ‘journey’) aims to help

15,000 students and staff from Wales travel

overseas, and for 10,000 in turn to work or study in

Wales. It replaces the Erasmus+ programme the UK

Government left after Brexit.

Supporting universities in Ukraine

Cardiff University is twinning with National University

Zaporizhzhia Polytechnic to provide vital support to

Ukrainian staff and students, enabling them to

continue their learning and research and to lay the

foundation for a rich, long-term collaboration

between the two institutions.

Vice-Chancellor’s Review

10

Innovation

The opening of our new innovation building, sbarc /

spark completes our Cardiff Innovation Campus,

and fulfils our strategic vision that innovation is

something that crosses the campus, arising from

the interplay between ideas, people, and facilities.

This beautiful building is a fitting home for all the

public interest work in social sciences that we

engage in. With the completion of this Campus, we

have positioned ourselves effectively in line with

post-Covid-19 revival and renewal opportunities in

Wales and the UK.

Creating a centre of excellence for clinical

research

The Cardiff Joint Research Office, a collaboration

between the University and Cardiff and Vale

University Health Board, officially opened. The new

office supports a joint approach to the development

and delivery of healthcare research and aims to

make the Welsh capital one of the best places in the

UK for clinical research.

£9.5m for Cardiff-led cyber innovation hub

A proposal to establish a Cyber Innovation Hub has

attracted commitments of funding from Welsh

Government and the Cardiff Capital Region City

Deal. The co-investment in a Cardiff University-led

Cyber Innovation Hub is expected to drive the

transformation and growth of a cybersecurity cluster

in South Wales. The cluster is aligned with our

innovation

strategy,

leveraging

long

standing

commercial and public sector partnerships to

develop market-led challenges, deliver IP, champion

new cyber products and high-growth companies,

and develop a talent pool that feeds directly into the

cluster.

Clwstwr celebrates success of creatives in

south Wales

Clwstwr, a multi-million-pound programme to drive

innovation in the screen industries, celebrated the

work of more than 100 projects which have

benefited. A research and development programme,

it has supported freelancers, small businesses and

larger organisations in South Wales to explore new

ways of working and trial new products and services.

Accelerating Cardiff’s bright ideas

Cardiff

University's

best,

brightest

and

most

disruptive ideas are to benefit from £3m funding to

accelerate knowledge exchange, translation, and

commercialisation. The award from UK Research

and Innovation’s Impact Acceleration Account will

support early-stage translation of UK research to

create new jobs, transform public services, attract

private investment, and forge new partnerships with

business and charities.

World Health Organization endorses Cardiff

Model

The World Health Organization is calling on global

governments to adopt the UK’s Cardiff Model for

Violence

Prevention.

Pioneered

by

Professor

Jonathan Shepherd, the model brings agencies

together to prevent violence using data collected in

emergency

departments

as

well

as

police

intelligence.

Vice-Chancellor’s Review

11

Civic Mission and Sustainability

One of the key milestones in our civic mission

strategy was achieved this year with the opening of

the Grange Pavilion. The Pavilion is the centrepiece

of the Community Gateway Project and was one of

our original Way Forward Flagship Engagement

Projects. It has transformed an old bowls pavilion

into a thriving hub of activity for the community. It is

a stand-out example of how it is possible, by working

with the local community and making Civic Mission

part of the University strategy, to engage schools,

local agencies and above all members of our local

communities in working together to make real

change and improvements that benefit all.

Parent Power Cardiff launched to boost

university access for local communities

A group for parents has been launched to boost

university access for local students. Parent Power

Cardiff is a joint initiative between Cardiff University

and UK education charity The Brilliant Club. Parents

will be driving the aims of the network, drawing on

our expertise and support to address the challenges

or potential barriers to higher education.

New scholarships for disadvantaged black

British students

We are collaborating with the Cowrie Scholarship

Foundation to provide scholarships for financially

disadvantaged

Black

British

students.

The

University will cover tuition fees with the Foundation

providing funding to cover maintenance and living

costs through business and individual donors, along

with mentorship, role models, and resilience

programmes for scholarship students to ensure they

make the most of their study opportunities.

Bronze Age enclosure sheds light on earliest

inhabitants of Cardiff

An archaeological dig at a city park has uncovered

what could be the earliest house found in Cardiff.

The Caerau and Ely Rediscovering (CAER) Heritage

Project, a partnership between the University, Action

in Caerau and Ely, local schools, residents, and

heritage partners, began excavations at Trelai Park.

Their discovery sheds light on some of the earliest

inhabitants of Cardiff.

Celebrating Children’s University success

Our Centre for Student Life played host to a

graduation ceremony for school children from

across the city. The pupils from four primary schools

dressed in traditional caps and gowns to mark the

completion of a new scheme designed to encourage

and develop a love of learning.

Vice-Chancellor’s Review

12

Supporting Cardiff

We are very grateful to our donors, fundraisers, and

volunteers, who continue to show their support

through generous donations and legacies, and by

giving their time and expertise. In these challenging

times, the support of our wonderful community of

alumni and friends is invaluable in helping to further

Cardiff University’s mission to create and share

knowledge, and to educate for the benefit of all.

The support we receive through gifts and pledges

make world-class research possible and ensure the

best and brightest students can access the

education and opportunities they deserve.

Our volunteers, many of them alumni, play a vital

role in supporting the next generation of Cardiff

students. This year they’ve generously shared their

experiences and knowledge through open days,

offer holder events and by sharing their stories. They

have also provided mentoring, career talks and

internships to help students develop the skills and

experience they need for life after university.

Our

#TeamCardiff

fundraisers,

whose

efforts

support life-changing research in neuroscience,

mental health and cancer at Cardiff University,

welcomed the return of in-person events, including

the rescheduled Cardiff Half Marathon which took

place in March 2022. We were extremely grateful to

the hundreds of alumni, staff and students who took

part, as well as those who organised their own

fundraising challenges and events.

A big thank you to everyone who supported us this

year.

Over £6m of new funds were secured* from

more than 531 donors and fundraisers,

including 30 organisations.

Their support is making world-class research

possible and giving talented students opportunities

to flourish.

(*Using CASE-Ross definitions)

£500,000 was pledged by The Wolfson

Foundation

A longstanding supporter of Cardiff University, this

gift will build a new cleanroom where Cardiff

physicists can help develop and create the exquisite

measurement

devices

which

comprise

global

Gravitational Wave observatories – allowing the

exploration of some of the most challenging

problems in physics today.

£507,000 has

been generously donated

through gifts in wills

These gifts make a lasting difference to future

generations of students, and enable pioneering

research to save, change and enrich lives in Wales

and beyond.

8,842 volunteering hours were given by

Cardiff’s alumni community.

Our global alumni community supported future and

current students, as well their fellow alumni by

sharing their experience and expertise. Alumni gave

their time to support recruitment events and offer

mentoring and career guidance, as well helping to

build networks and open doors.

£68,700 was raised by 262 #TeamCardiff

fundraisers.

#TeamCardiff stepped up with fundraisers taking on

challenges like the Cardiff Half Marathon in March

2022, London Marathon, and the National 3 Peaks

Challenge. Our fundraisers also organised their own

fundraising

events

and

challenges,

to

help

accelerate life-changing discoveries to improve

prevention, diagnosis, and treatment for people

living with a wide range of conditions.

81 members of Cylch Caerdydd supported

students and research with a gift of £1,000 a

year or more.

Cylch Caerdydd donors play a crucial role in

supporting the University’s work.

Find out more:

cardiff.ac.uk/donate/join-cylch-caerdydd

Vice-Chancellor’s Review

13

Cost of living and war in Ukraine

I want to cover two of the risks facing the

University over the next year, and indeed

further ahead.

As I write, the cost-of-living crisis is presenting

uncertainties for all. Earlier in the year we made a

further £400,000 available for our Financial

Assistance Funds, bringing the total available to

help those students most in need to over £1m. The

current situation is unpredictable, and looking to the

future, it is crucial that we continue to support our

students to deal with these pressures. We are

considering how best to offer support to staff and

are also working on measures such as ensuring that

people can work on campus rather than at home if

they need to, and that affordable food will be

available at our outlets.

I have already mentioned the brutal and illegal

invasion of Ukraine but wanted to return to it here

as a risk we face in the months and years ahead. We

are committed to supporting academics and

students in Ukraine, as well as our own staff and

students. It is important to say that we must be

careful not to withdraw our support from Russian

academic colleagues who may have opposed

Putinism for years, many of whom have run

significant risks and made personal sacrifices by

signing statements opposing the war and the

actions of their government. This is a complex set of

circumstances, and it is important to remember that

a key role of universities is to build academic

bridges where governments may destroy them.

Planning for the future

As we have seen with the Omicron variant, COVID-

19 still has the potential to disrupt, and it would be

remiss of us to consider the pandemic as over. We

will remain watchful rather than complacent and

have been working on contingency plans for the

winter should they be needed.

As we learn to live with COVID-19, now is a good time

to remind ourselves of other critical matters that we

must address in the years ahead. We retain a strong

focus on climate change and our achieving net zero,

but we must also re-affirm our commitment to

removing single-use plastic from the campus to the

greatest extent possible.

While we have turned a corner in relation to NSS and

student experience, there is still some way to go.

The challenge now is to make the improvements

sustainable, embed good practice and ensure that

our students increasingly confirm that they are

happy with the experience they have at Cardiff

University.

With the REF 2021 results now behind us, the next

phase of our research strategy will need to focus on

providing the right kind of supportive environment

for our researchers, along with guidance on how to

succeed, especially for those in the early phase of

their career. Our strategy since 2014 has been one

of support and inclusivity, and we have learned

much along the way that we can successfully deploy

as we look forward to the next REF, expected in

2028.

The year ahead will be my last as Vice-Chancellor,

as I retire at the end of the 2023 academic year.

Until that point, of course, I shall remain committed

and focussed on my role and on the needs of the

University.

I would like to end by thanking our staff, students

and supporters for the energy and time they have

dedicated to this university and our mission. I have

always maintained that Cardiff’s strength comes

from its community. It is a community characterised

by compassion, kindness and commitment, values

that have triumphed again over the last year.

Professor Colin Riordan

Vice-Chancellor

24 November 2022

Key trends in Higher Education

14

Following the Senedd elections in May 2021, Welsh

Labour & Plaid Cymru entered into a co-operation

agreement. In December they agreed a three-year

joint policy agreement covering 46 policy areas, and

with funding to support them. Both parties have

been clear that this is a not a coalition but an

agreement to deliver a shared programme of work

and provide stability to governance in Wales during

this Senedd term.

One of the key policy areas in the agreement was

the Tertiary Education & Research (Wales) Act, a

long-standing piece of the Welsh Government’s

legislative programme. The Act contains nine key

strategic duties and will bring together all parts of

the post-16 education sector under one new

regulator, the Commission for Tertiary Education &

Research.

Cardiff

University

fed

into

the

consultation

highlighting sectoral concerns and pushing on

research areas.

The Welsh Government has also been developing

their International Learning Exchange Programme,

now called Taith. The £65m investment serves as a

partial replacement for Erasmus+ and has been

developed by Cardiff University over the academic

year. Welsh universities can utilise the programme

in conjunction with the UK Government’s Turing

scheme and is positive for the sector in Wales,

giving a clear indication that internationalisation

remains vital to Welsh Higher Education.

Cardiff University continues to contribute to plans

for a North Wales Medical School at Bangor

University, which will be Wales’s third such school.

We continue to support the establishment of the

North Wales Medical School, while making the case

that any expansion in Wales’s medical education

and research should mean additional investment

rather than re-allocation of existing resource.

In July, the Welsh Government launched their draft

Innovation Strategy for Wales, to which Cardiff

University has submitted a detailed response.

Cardiff University continues to encourage greater

ambition for Welsh innovation to complement and

build on our own vision for research and innovation

which was set out in our refreshed sub-strategy in

December 2021.

While much of higher education is devolved, the

reality of the UK’s constitution means Cardiff

University is affected by Westminster policy shifts.

The great levers affecting the research funding

system are reserved in London, where the trend is

towards

a

heavy

emphasis

on

science

and

technology.

Amidst political uncertainty at Westminster, the

status of the ‘Levelling Up’ agenda has become

uncertain, and it is highly likely that prioritisation

and financial support for addressing regional

inequality might slip. Meanwhile, the worsening cost

of living crisis presents a key challenge, with HE

institutions needing to put the case for their own

funding to increase to reflect growing costs of

provision.

There continues to be a substantially different rate

of fees between England and Wales that puts Welsh

universities at a competitive disadvantage to

English counterparts, not only for research but for

our ability to attract and retain staff.

Making this disparity clear to both UK and Welsh

Governments remains a priority.

Major Committees and University Executive Board

15

Report from the Governing Body’s key

committees

Council has established four major committees

whose members it appoints to oversee various

aspects of the University’s business: the Audit and

Risk Committee, the Finance and Resources

Committee, the Governance Committee, and the

Remuneration Committee. All of these committees

are formally constituted, each with terms of

reference and a membership which includes lay

members of Council and a Council lay member as

Chair.

Major

committees

may

establish

sub-

committees,

such

as

the

Nominations

Sub-

Committee which is a key sub-committee created to

consider and agree recommendations to Council in

relation to key appointments.

Audit and Risk Committee

Member

Type

Attendance

Michael Hampson (Chair)

Lay

5/5

Pers Aswani

(appointed from 01 Aug 22)

Lay

0/0

Paul Benjamin

(resigned 16 Apr 22)

Lay

2/4

Donall Curtin

Lay

5/5

Suzanne Rankin

(appointed from 01 Aug 22)

Lay

0/0

Dr Janet Wademan

(term ended 31 Jul 22)

Lay

5/5

Robert Weaver

(appointed from 01 Aug 22)

Lay

0/0

Agnes Xavier-Phillips

Lay

4/5

The Chair of Council and members of staff or

students at the institution, are not members of the

Committee. Members are not individuals with

executive management responsibilities within the

institution

or

members

of

the

Finance

and

Resources Committee.

Key responsibilities

The Audit and Risk Committee has a key role in

advising and assisting the Council in overseeing the

assurance

and

control

environment

of

the

University. Its duties cover:

• Assessing

and

advising

Council

on

the

effectiveness

of

the

institution’s

risk

management,

control

and

governance

arrangements, and the internal controls and

procedures to promote economy, efficiency and

effectiveness.

• Oversight

of

external

and

internal

audit

arrangements, including advising the governing

body on the appointment of the audit providers,

and oversight of the nature and scope of external

and internal audits and the effectiveness of the

audit processes; and

• Oversight of audit aspects of the University’s

financial statements, including the independent

auditors’ opinion, the statement of members’

responsibilities, the statement of internal control

and

any

relevant

issue

raised

in

the

management representation letter.

Summary of business

The Audit and Risk Committee met five times during

2021-22, including an extraordinary meeting to

make a recommendation to the Council on the

appointment of the External Auditor following a

competitive tender exercise undertaken during the

year.

The

External

Auditors

were

present

for

consideration of a Going Concern Report, the annual

Financial

Statements

and

management

representation letter, as well as approval of the

annual internal audit plan.

The Committee reviewed the University’s risk

register and detailed reports, including those from

internal audit, together with recommendations for

the improvement of the University’s systems of

internal control, as well as management responses

and implementation plans.

The Committee considered reports on value for

money, cyber security and in relation to HEFCW

institutional reviews, and approved revisions to the

Serious Incident Framework to ensure compliance

with the Charities Act.

Major Committees and University Executive Board

16

Finance and Resources Committee

Member

Type

Attendance

John Shakeshaft

Lay

4/4

Professor Rudolf

Allemann

(appointed from 09

Feb 22)

Employee

1/2

Hannah Doe

(term ended 30 Jun

22)

Student

4/4

Gina Dunn

Student

2/4

Angie Flores Acuña

(appointed from 01

Jul 22)

Student

0/0

Chris Jones

Lay

4/4

Jan Juillerat

Lay

4/4

Robert Kingham

(appointed from 01

Jan 22)

Lay

3/3

Professor Stuart

Palmer

(term ended 31 Dec

21)

Lay

1/1

Professor Colin

Riordan

Employee

4/4

Professor Damian

Walford Davies

Employee

4/4

David Simmons

(term ended 31 Jul

22)

Lay

3/4

Jennifer Wood

(appointed from 01

Aug 22)

0/0

Patrick Younge

(appointed from 01

Jan 22)

Lay

3/3

Key responsibilities

The broad remit of the Finance and Resources

Committee is to monitor the University Executive

Board’s proposals for achievement of the strategic

aims by scrutinising the alignment of resources to

the Strategic plan and monitoring of performance

against that. It has specific duties in respect of the

following areas:

•

Resource Allocation, including allocation

provided to Students’ Union.

• Financial management.

• Digital Infrastructure management.

• Human Resources management

Summary of business

The Committee met four times during the 2021/22

academic

year.

The

Committee

oversaw

the

business of its two sub-committees that scrutinise

the

development

and

implementation

of

environmental sustainability strategy and activity of

the University, and the management of the

University’s investment and banking activity. On

review of its terms of reference and the governance

of estates matters, the Committee agreed to

disband

the

Estates

and

Infrastructure

Sub-

Committee with its activities absorbed into the

Finance and Resources Committee. In light of this,

the Committee reviewed the proposed criteria for

requesting funding from

investment reserves,

directly associated with the public bond cash

injection, and scrutinised proposals for several

estates related projects.

Over the course of the year, the Committee reviewed

performance across HR related activities, and the

University’s financial statements, budgets, and

financial plans alongside the Strategic Plan. Other

work

reviewed

included

proposals

for

staff

pensions, the Students’ Union Accounts and Block

Grant, the 10-year Residences Fire Safety Planned

Maintenance

Programme

and

progress

with

completion of the Cardiff Innovation Campus. The

Committee

received

regular

updates

on

the

formation and launch of the International Learning

Exchange Programme.

Major Committees and University Executive Board

17

Governance Committee

Member

Type

Attendance

Judith Fabian (Chair)

Lay

4/4

Hannah Doe

(term ended 30 Jun 22))

Student

4/4

Gina Dunn

(appointed from 01 Jul

22)

Student

0/0

Professor Dame Janet

Finch

(appointed from 22 Feb

22)

Lay

2/2

Jan Juillerat

Lay

4/4

Dr Joanna Newman

(resigned 01 May 22)

Lay

2/3

Professor Stuart

Palmer

(term ended 31 Dec 21)

Lay

1/1

Professor Colin

Riordan

Employee

2/4

David Selway

(appointed from 01 Aug

22)

Lay

0/0

Judge Ray Singh

Lay

4/4

Dr Andy Skyrme

Employee

4/4

Professor Ceri

Sullivan

Employee

2/4

Professor Damian

Walford Davies

Employee

3/4

Professor Stuart

Walker

(resigned 22 Feb 22)

Lay

1/2

Patrick Younge

(appointed from 01 Jan

22)

Lay

3/3

Key responsibilities

The key role of the Governance Committee is to

advise and make recommendations to the Council

on:

• Matters relating to the governance of the

University;

• The University’s level of compliance with the

mandatory requirements of legislation and other

regulations, including the provisions of the

Equality Act and the Welsh Language Act;

•

Effectiveness reviews of Council as required;

• Constitutional and legal matters, including the

Charter, Statutes and Ordinances;

•

Lay Member nominations and appointments.

To discharge its responsibilities, the Governance

Committee has established five sub-committees:

• Nominations

•

Health, Safety and Wellbeing

•

Equality, Diversity, and Inclusion

• Biological Standards

•

Open Research Ethics and Integrity.

Summary of business

The Governance Committee met 4 times in 2021-

22. Over the year the Committee has reviewed the

University’s Governance Framework and approved

associated updates to Statutes and Ordinances. It

has also monitored completion of outstanding

actions from a series of governance reviews,

including the Governance Charter for Wales 2020

and Commitment to Action and the Governance

Effectiveness Review 2021.

The Committee approved the first tranche of a new

Scheme

of

Delegation,

which

was

a

key

recommendation

from

the

Governance

Effectiveness Review 2021 and reviewed a number

of

annual

assurance

documents,

including

compliance with the Welsh Language Standards,

Information Management, PREVENT, The Modern

Slavery Act 2015 and the Strategic Equality Plan

Annual Monitoring Report.

The Governance Committee reviewed the lay

member skills matrix and equality and diversity data

to consider the composition requirements of an

effective and efficient governing body, and, with the

support

of

the

Nominations

Sub-Committee,

oversaw the appointment of the new Chair of

Council and three new Lay Members of Council.

Major Committees and University Executive Board

18

Nominations Sub-Committee

Member

Type

Attendance

Jan Juillerat (Chair)

(term ended on 19 Jan

22)

Lay

2/2

Professor Rachel

Ashworth

Staff –

Senate

member of

Council

4/5

Hannah Doe

(

appointed from 20

Jan 22, term ended 31

Jul 22)

Student

3/5

Gina Dunn

(appointed from 01

Aug 22)

0/0

Tomos Evans

(term ended on 19 Jan

22)

Student –

Senate

member of

Council

2/2

Judith Fabian (Chair

from 20 Jan 22

)

Lay

5/5

Judge Ray Singh

(term ended on 19 Jan

22)

Lay

2/2

John Shakeshaft

(appointed from 20

Jan 22)

Lay

2/3

Patrick Younge

(appointed from 20

Jan 22)

Lay

3/3

Key responsibilities

The role of the Nominations Sub-Committee is to

consider and agree recommendations to Council in

relation

to

key

appointments,

including

the

appointment and re-appointment of the Chair and

Lay Members to the Council and its committees.

The sub-committee ensures that lay member

recruitment is achieved through a clear and

transparent appointment process, having due

regard for the overall skills and experience of the

governing body, balance of sector and non-sector

knowledge and commitments to diversity and

inclusivity.

Summary of business

The sub-committee met on five occasions during

2021-22 to consider the recruitment and selection

of the new Chair of Council and the first Governor

Apprentice. Following on from a Governance

Effectiveness

Review

recommendation,

the

composition was reviewed, and a new body

composed for the sub-sequent recruitment of a

number of new Lay Members of Council and Sub-

Committees.

The

Committee

approved

the

advertising materials and methods for the posts and

worked with an executive search firm appointed in

relation to the Chair of Council position and Lay

Member positions on the Council and the Audit and

Risk Committee, Perrett Laver.

The governor apprentice was recruited via Perrett

Laver’s Governor Apprenticeship Scheme which

aims to encourage diversity on boards, and the post

was advertised externally.

The recruitment exercise for the Chair of Council

commenced during 2020-21 and concluded in

September 2021 with a recommendation made to

Council in October 2021. Recruitment for the Lay

Member positions was undertaken during June and

July 2022.

Major Committees and University Executive Board

19

Remuneration Committee

Member

Type

Attendance

Jan Juillerat (Chair)

Lay

2/2

Professor Dame Janet

Finch

Lay

2/2

Michael Hampson

(appointed from 01 Aug 22)

Lay

0/0

Professor Stuart Palmer

(term ended on 31 Dec 22)

Lay

1/1

Dr Janet Wademan

(term ended on 31 Jul 22)

Lay

2/2

Patrick Younge

(appointed from 01 Jan 22)

Lay

1/1

The

Remuneration

Committee

has

a

wholly

independent membership of lay members of the

Council (who include the Chair and Vice-Chair of

Council).

The Remuneration Committee shall not be

chaired by the Chair of Council.

Key responsibilities

The Remuneration Committee, with advice from the

Professorial

and

Senior

Salaries

Committee,

develops the overall reward strategy and policy to

cover the remuneration, benefits, conditions of

employment and severance of the senior officers

and staff of the University, including Deans and

Heads of School.

The Committee is responsible for determining the

remuneration,

benefits,

and

conditions

of

employment of the Vice-Chancellor and their direct

reports, taking account of affordability, comparative

information of the remuneration, benefits and

conditions of employment in the Higher Education

Sector and elsewhere as appropriate and relevant

metrics and performance data.

Summary of business

During 2021-22 the Committee reviewed the Senior

Salary Review for the Vice-Chancellor and the Senior

Staff Salary and Professorial Banding (including the

Vice-Chancellor's direct reports), the annual update

on the Gender and Ethnicity Pay Gap and on Equal

Pay and Senior Pay Governance. The Committee

also undertook its annual review of the Committee

of

University

Chairs

(CUC)

HE

Senior

Staff

Remuneration Code.

Major Committees and University Executive Board

20

Senate

Member

Type

Attendance

Professor Colin Riordan

(Chair)

Employee

2/3

Professor Rudolf

Allemann

Employee

3/3

Professor Stuart Allen

Employee

3/3

Professor Rachel

Ashworth

Employee

0/3

Professor Roger

Behrend

Employee

1/3

Tine Bloome

Employee

3/3

Professor Kate Brain

Employee

3/3

Dr Paul Brennan

Employee

2/3

Gill Bristow

Employee

1/3

Professor Marc Buehner

Employee

3/3

Dr Cindy Carter

Employee

1/2

Professor David Clarke

Employee

3/3

Kelsey Coward

Employee

0/3

Professor Trevor Dale

Employee

2/3

Dr Juliet Davis

Employee

1/3

Professor Lina Dencik

Employee

1/3

Rhys Denton

Employee

2/3

Hannah Doe

Student

3/3

Dr Luiza Dominguez

Employee

3/3

Gina Dunn

Student

3/3

Helen Evans

Employee

3/3

Professor Stewart Field

Employee

1/3

Professor Dylan Foster

Evans

Employee

3/3

Graham Getheridge

Employee

3/3

Professor Kim Graham

Employee

2/2

Chris Grieve

Student

1/3

Dr John Groves

Employee

1/3

Professor Mark

Gumbleton

Employee

1/3

Professor Ian Hall

Employee

0/3

Professor Thomas Hall

Employee

3/3

Professor Ken Hamilton

Employee

2/3

Dr Natasha Hammond-

Browning

Employee

1/3

Professor Ben Hannigan

Employee

3/3

Dr Alexander Harmer

Employee

3/3

Professor Adam

Hedgecoe

Employee

3/3

Professor James Hegarty

Employee

0/3

Professor Mary Heimann

Employee

0/3

Dr Monika Hennemann

Employee

2/3

Professor Joanne Hunt

Employee

2/3

Professor Nicola Innes

Employee

2/3

Professor Dai John

Employee

3/3

Professor Urfan Khaliq

Employee

1/3

Professor Alan Kwan

Employee

0/3

Professor Wolfgang

Maier

Employee

2/3

Emmajane Milton

Employee

2/3

Claire Morgan

Employee

3/3

Member

Type

Attendance

Professor

Damien

Murphy

Employee

2/3

Professor Jim Murray

Employee

2/3

Larissa Nelson

Employee

2/3

Dr James Osborne

Employee

3/3

Joanne Pagett

Employee

1/3

Dr Jo Patterson

Employee

3/3

Dr Jamie Platts

Employee

1/3

Dr Juan Pereiro Viterbo

Employee

2/3

Abyd Quinn-Aziz

Employee

3/3

Dr Caroline Rae

Employee

2/3

Dr Emma Richards

Employee

1/3

Kate Richards

Employee

3/3

Professor Steve Riley

Employee

2/3

Sebastian Ripley

Student

3/3

Dr Josh Robinson

Employee

1/3

Sarah Saunders

Employee

1/3

Dr Andy Skyrme

Employee

1/3

Professor Peter

Smowton

Employee

2/3

Dr Zbig Sobiesierski

Employee

3/3

Megan Somerville

Student

3/3

Helen Spittle

Employee

3/3

Tracey Stanley

Employee

3/3

Professor Ceri Sullivan

Employee

3/3

Professor Petroc

Sumner

Employee

2/3

Professor Peter Sutch

Employee

1/3

Professor Patrick Sutton

Employee

2/3

Orla Tarn

Student

3/3

Dr Catherine Teehan

Employee

3/3

Gail Thomas

Employee

2/3

Dr Jonathan Thompson

Employee

2/2

Dr Onur Tosun

Employee

2/3

Dr Laurence Totelin

Employee

2/3

Charlotte Towlson

Student

2/3

Professor Damian

Walford Davies

Employee

3/3

Dr Catherine Walsh

Employee

1/3

Matt Walsh

Employee

3/3

Professor Ian Weeks

Employee

3/3

Prof Keith Whitfield

Employee

2/3

Professor

David

Whitaker

Employee

2/3

Professor

Roger

Whitaker

Employee

1/1

Professor John Wild

Employee

1/3

Professor Martin Willis

Employee

2/3

Professor Jianzhong Wu

Employee

2/3

Major Committees and University Executive Board

21

Senate (Continued)

Key responsibilities

The Senate is established by the University’s

Charter, which gives it responsibility for the ordering

of the academic affairs of the University, both in

teaching and in research, and powers to make

Academic Regulations. It draws its membership

from the academic staff, professional services staff

and students of the Institution.

Senate keeps under

review the educational policy of the University and

provides Council with assurance that the academic

affairs of the University are appropriately managed.

In turn, Senate has established standing panels and

Sub-Committees to support it in discharging its

responsibilities, such as the Academic Standards

and Quality Committee and the Education and

Student Experience Sub-Committee.

Summary of business

The Senate met three times during the 2021/22

academic year. Key areas of strategic business

included an update on the prioritising and delivery

of

the

Education

&

Students

Sub-Strategy,

discussions on the approach to online provision and

updates on strategic partnerships and entities.

Senate

also

received

detail

on

the

recommendations

of

the

2021

Governance

Effectiveness

Review

and

the

proposals

for

engagement

with

stakeholders

following

the

conclusions of the Court Working Group. Senate

also received a presentation on the results of the

2021 REF submission.

Senate considered the Annual Quality Report

2020/21 and the Student View and Institutional

Response for 2021, as well as the 2022 Student

View at its last meeting of the academic year.

Senate received reports from its sub-committees on

the business they had undertaken along with a

number of annual reports (such as the Annual

Statement on Research Integrity and the Students’

Union Charter and Relationship Agreement).

Major Committees and University Executive Board

22

University Executive Board

Member

Type

Professor Colin Riordan (Chair)

Employee

Professor Rudolf Allemann

Employee

Professor Kim Graham

(term ended 31 May 22)

Employee

Rashi Jain

Employee

Professor Urfan Khaliq

(appointed 01 Sep 21)

Employee

Susan Midha

Employee

Claire Morgan

Employee

TJ Rawlinson

Employee

Claire Sanders

Employee

Robert Williams

(term ended 31 Dec 21)

Employee

Professor Damian Walford Davies

Employee

Darren Xiberras

(appointed 01 Jan 22)

Employee

Professor Ian Weeks

Employee

Professor Roger Whitaker

(appointed 01 Jun 22)

Employee

All members of the University Executive Board

attend weekly senior meetings. Given the frequency

of these meetings, the attendance is not recorded

in the table above.

Key responsibilities

The University Executive Board is the University’s

senior executive team. The HEFCW Terms and

Conditions of Funding defines the Senior Executive

Team in accordance with Financial Reporting

Standard 102 (FRS 102)’s definition for ‘key

management personnel’; that is “those persons

having authority and responsibility for planning,

directing and controlling the activities of the entity,

directly or indirectly, including any director (whether

executive or otherwise) of that entity”.

The broad remit of UEB is to advise the Vice-

Chancellor in the performance of their duties as the

Chief Executive Officer including developing and

implementing strategy, operational plans, policies,

and procedures, setting budgets, and monitoring

operating and financial performance.

Summary of business

In addition to weekly meetings throughout 2021-22,

the UEB held three extended away days to look at

strategic themes in addition to decision-making.

Student life and the student experience were a

priority focus through the year. Other key areas of

activity included the Better Ways of Working

programme and return to campus; development

and implementation of a University-wide Integrated

Planning Process; the handover and opening of

major new capital builds; enhancing provision for

asylum seekers, refugees, and individuals from

BAME communities; and progressing the short-term

investment plan 2021-23.

Remuneration Statement

23

Senior Pay Remuneration

The

Remuneration

Statement

provides

the

framework for decision making in respect of

remuneration and in particular decision making on

remuneration for senior staff.

All senior staff, excluding the Vice-Chancellor, are

covered by the University’s Senior Pay Policy, which

is published annually. This reviews performance on

a biennial basis, and allows performance-based

awards, as well as reviewing equity. Data drawn

from the Universities and Colleges Employer

Association’s (UCEA) Senior Staff Remuneration

Survey and the Russell Group Reward Survey are

used

to

provide

evidence

for

any

market

adjustments. The policy is set by the Remuneration

Committee, who have overall responsibility for the

University’s approach to senior remuneration. As

part of this role, it takes decisions on the pay of the

most senior individuals in the University, including

the Vice-Chancellor.

The numbers of all staff paid above £100k are

published in the Notes to the Financial Statements

of this report, along with directly reimbursed

expenses for senior staff who are members of the

University Executive Board. All expense claims and

payments made to senior members of the University

are in accordance with the University’s financial

regulations. These apply to all staff and are

reviewed and approved annually by the University

Council.

Vice-Chancellor Remuneration

The

remuneration

of

the

Vice-Chancellor

is

determined

by

the

Remuneration

Committee,

through the Vice-Chancellor’s Reward Scheme.

This scheme is designed as a long-term incentive

plan to reward and retain the Vice-Chancellor with a

view to delivery of the Way Forward Strategy 2018-

23. The scheme builds on the principles of the

Senior Salary Review process as outlined in the

Senior Staff Pay Policy.

The Vice-Chancellor’s Reward Scheme involves:

•

an annual review of base pay in relation to the

market;

•

a

long-term

lump

sum

non-pensionable

performance-related bonus payment linked to

the achievement of the Way Forward 2018-

2023.

When the Remuneration Committee reviews the

Vice-Chancellor’s

remuneration

package,

it

considers comparative information on salaries,

other benefits, and conditions of service in the

Higher Education sector and elsewhere.

Remuneration for other staff groups

The majority of other staff are on the National

Framework Agreement (NFA) pay spine and covered

by the University’s Grading Structure which consists

of 8 grades. These grades are supported by the

Higher

Education

Role

Analysis

(HERA)

role

evaluation methodology.

Staff on NFA pay scales gain pay increases annually

based

on

increased

skill,

knowledge,

and

experience, until they reach the top of the grade’s

core range. They are also subject to any nationally

agreed pay awards.

The Clinical Pay Scale covers clinical staff, and

replicates the NHS pay ranges. Clinical staff gain

increases annually based on increased skill,

knowledge, and experience, until they reach the top

of the grade range. Clinical consultants also gain

commitment awards above the top of the consultant

grade range.

The

Outstanding

Contribution

Award

Scheme

(OCAS) recognises exceptional performance and

contribution, resulting in both one-off awards, and

any accelerated incremental progression.

Living Wage Employer

The University is an accredited Living Wage

employer and as a result all staff receive at least the

Living Wage Foundation rate of pay.

Pay Ratio

The ratios between the VC salary and the median

pay of staff and the VC total remuneration and the

median total remuneration of staff are disclosed in

note 8 (staff costs).

Exit policy

All settlement agreements, including voluntary

severance, for professorial, professional service

directors and senior staff are reported biannually to

the Remuneration Committee, with details of both

the severance payment and the saving to the

university. Any redundancies related to academic

and senior staff are subject to the University’s

redundancy processes.

Financial Review

24

The University retained an operating

surplus of £28m in 2021/22 before the

change in the USS pension scheme

provision

The financial year ending 31st July 2022 continued

to challenge us, as we emerged from the global

pandemic into the ‘new normal’ way of operating.

As we ended the year, new economic headwinds

were starting to emerge in inflation, especially in

energy costs and higher interest rates which look set

to remain entrenched for the foreseeable future at

the time of writing this report. Despite these

challenges the University was able to retain an

operating surplus of £28m before the change in the

USS pension scheme provision and strengthen its

financial reserves.

The

underlying

operating

surplus

of

£28m

reconciles to the total deficit of £28m as follows:

Summary of Group

Results

2021/22

2020/21

£m

£m

Total comprehensive

(deficit)/ surplus for the year

(27.8)

58.9

USS pension provision charge

118.8

2.4

Actuarial gain on pensions

(72.1)

(3.0)

Surplus before other

losses/(gains)

18.9

58.3

Other losses/(gains)

8.8

(27.4)

Underlying operating surplus

27.7

30.9

The financial statements for the year ended 31 July

2022 consolidate the results of the University, its

subsidiary companies University College Cardiff

Consultants Limited and International Learning

Exchange Limited (“Taith”) and, the joint ventures of

Compound Semiconductor Centre Limited and

Cardiff Medicentre.

Income up 3.6% to £634m

2021/22 saw total income grow from £612.2m

(restated – see note 29 in the financial statements)

to £634.2m largely due strong growth in research

income (up £13m or 11% to £125m), tuition fee

income (up £9m or 2.9% to £289m) and residence,

catering, and conference income (up £5m or 22% to

£28m).

2021/22 saw a 2.9% increase in tuition fees and

education

contracts

which

while

better

than

2020/21 was not as high as we had anticipated.

This was, however, offset by higher research and

income relating to commercial services offered by

the Institution.

-

£100m

£200m

£300m

£400m

£500m

£600m

2017/18 2018/19 2019/20 2020/21 2021/22

Income by Category (£m)

Other Income

Research Grants & Contracts

Tuition Fees & Support Grants

Funding Body Grants

-

5k

10k

15k

20k

25k

30k

-

£50m

£100m

£150m

£200m

£250m

Student Fees (£m) & FTEs (000's)

Financial Review

25

Our student body of 30,267 students is made up

as follows:

Student Numbers

2021/22

2020/21

Undergraduates

22,485

21,655

Postgraduate Taught

5,985

5,867

Postgraduate

Research

1,797

2,241

Total

30,267

29,763

Home

24,073

24,080

Overseas

6,194

5,683

Total

30,267

29,763

Whilst

recurrent

grant

income

from

HEFCW

increased by £13m to £75m overall funding

reduced by £11m. This reduction reflected the

withdrawal of Welsh Government COVID-19 funding

for the sector to support students, staff, and

facilities as we emerged from the worst of the

pandemic.

Research activity returned to a growth during this

financial

year

generating

£125m

of

income

although new awards secured in the year fell

slightly.

Other income recovered from the impact of the

pandemic with services rendered to UK Government

and other sources growing strongly as well as

residences catering and conferencing activity.

Active

management

of

expenditure

continued throughout the year.

Total expenditure, excluding the USS pension

provision, increased by 5.0% to £606.5m.

The

increase in expenditure is largely attributable to the

institution returning to near pre-COVID-19 operating

environment.

Staff costs grew by 3.0% in the year which was less

than income grew despite the payment of a £750

one off payment to all staff up from the £250 paid

in 2020/21.

These payments reflected the

exceptional commitment and dedication of staff

during the pandemic. Average staff full time

equivalent (fte) numbers increased by 4% to 6,032

mainly in academic areas as we strove to improve

student experience and to deliver our research

commitments.

Staff costs as a proportion of income

was 53.5% and remained broadly in line with the

previous year (53.8%).

Operating expenses increased by £17.5m to

£212.9m in the year as the Institution gradually

returns to a normal operating environment, whilst

investing further in supporting staff and students,

and continuing to maintain a safe campus whilst

COVID-19 variants still circulate the general UK

population.

42%

6%

15%

6%

3%

7%

11%

1%

9%

Expenditure by Category

%

Academic departments

Academic services

Research grants and contracts

Other services rendered

Residences, catering and conferences

Premises

Administration and central services

Other expenses

Depreciation, interest & finance costs

Financial Review

26

Pension provisions increased

The Universities Superannuation Scheme (USS) of

which Cardiff is an employer member provides

pensions for academic and professional staff. The

University’s

financial

statements

reflect

the

actuarial valuation as of 31 March 2020, when the

scheme had a deficit of £16.1Bn (up from £3.6Bn

in 2018).

This has resulted in an increase of £118m in the

provision to £199m.

This was anticipated in last

year’s financial report as the valuation was

published after the accounting date but before the

signing date of the accounts.

Whilst the situation

remains volatile the funding position of the USS has

improved since March 2020 with interim valuation

positions

indicating

that

scheme’s

deficit

decreased, reflecting the changes to benefits which

were introduced in April 2022 and the current

interest rate environment.

The next valuation is due

to be undertaken in March 2023 and we remain

cautiously optimistic for a better valuation outcome

at that point.

Following the completion of the Cardiff University

Pension Scheme’s 2019 valuation the University

undertook a strategic review of the defined benefit

scheme. This resulted in a consultation with

members to close the scheme to new entrants and

to amend the benefits structure. The changes to the

Scheme were approved by Council and were

implemented from 1st January 2022 along with a

defined contribution scheme for new entrants.

Operating cash surplus of £50m retained

to support investment

The University retained an operating cash surplus in

the year of £50m or 7.9% of income. After servicing

debt, further fixed asset expenditure and depositing

funds into investments, the cash and cash

equivalent reserves of the University decreased by

£52.2m to £96.4m (see Statement of Cashflows on

Page 52)

At 31 July 2022 the University’s available cash

reserves and investments totalled £461m (2021

£474m), although this includes £64m ring-fenced

as the Bond Repayment Fund (see Note 24).

The University is in a strong position financially to

deal with any future financial challenges.

Campus upgrade programme substantially

complete

Following last year’s record level of annual capital

spend

at

£133.1m

the

campus

upgrade

programme

was

substantially

completed

in

2021/22. This year saw the opening of Abacws, our

new

School

of

Mathematics

and

School

of

Computer Science and Informatics, the Centre for

Student Life, an upgraded Bute Building to

accommodate the Welsh School of Architecture.

sbarc|spark, our new innovation centre and the

Translational Research Hub new home to the

Cardiff

Catalysis

Institute

and

Institute

for

Compound Semiconductors.

Investments

2020/21 proved a false dawn for the recovery of

the world economy, with war in Ukraine and the

ensuing economic turbulence and uncertainty

driving down financial markets globally during

2021/22 from where they finished the prior year. As

a result, our investment balances reduced by

£11.6m by the year end. During the year the

University incurred a net interest cost of £7.5m an

increase of £0.2m on the prior year.

A full year’s interest was due on the bond issued in

February 2021 accounting for the increase in

interest payable of £1.5m offset by increased

investment income of £1.2m.

During the year the University has become a partner

in SETsquared, the world’s top-ranked university-

business incubator. This will add significantly to our

ambition to turn research into real-world economic

and social enterprises.

Financial Review

27

Borrowings

Borrowings at the year-end totalled £427.1m of

which the public bond totalled £421.2m. This incurs

interest of 3.0% p.a. and is repayable in 2055.

Moody’s have assessed the bond as A1 with a

stable outlook.

The University has, to date, set aside £64m of

reserves into a bond repayment fund that is

invested on a total return basis with the objective of

being able to fund the repayment of the £400m

bond in 2055.

The University has a three year £20m Revolving

Credit Facility with Lloyds Bank to cover working

capital requirements. To date this facility has not

been used and expires in July 2024.

Strong Balance Sheet

At 31 July 2022 the University’s consolidated net

assets had reduced 4.1% to £649m (2021 £676m)

of which £292m or 45.1% represented unrestricted

reserves.

The University has successfully managed the many

challenges of the last year due to the significant

commitment of our staff. Whilst not reflected on the

balance sheet of the University they remain our

most important and valued asset.

Financial sustainability

In the short-term global economic headwinds and

the geo-political situation will continue to mean that

financial performance will continue to be difficult to

forecast and deliver.

Higher inflation rates will filter

into our operating costs especially in energy and

pay.

There is a continued threat of industrial action

which could impact upon our ability to deliver our

objectives.

Likely higher interest rates are unlikely

to impact upon our borrowing costs but could

continue to depress returns on our investment

portfolios.

We expect that if higher interest rates

are sustained it may have a positive impact upon

our pensions costs and liabilities.

Despite these

challenges

the

University

remains

in

robust

financial health with an excess of £450m of cash,

cash equivalents and investments held by the

University.

In the medium to longer term, we continue to expect

to achieve student growth in the highly competitive

international market. It is essential that we are able

to continue to attract and retain talented students

from both the UK and overseas to support our

scholarly activities across a diverse range of

academic disciplines. In order to do so, we will

continue to invest in our strategy to deliver a world-

leading,

research

excellent,

educationally

outstanding university, driven by creativity and

curiosity.

The significant investment we have made

to deliver a world-class campus will enable us to

achieve this vision alongside continued investment

in our employee’s professional development.

Our key performance financial metric is to deliver an

operating surplus before investment income and

depreciation in excess of 12% of income.

This

enables us to generate sufficient cashflow to

maintain and enhance the University’s facilities and

retain reserves that are sufficient to weather any

reasonably foreseeable economic challenges.

The University continuously scans the risk horizon

and regularly updates its risk register.

All risks are

rated in terms of impact and likelihood, risk

mitigation actions are logged and monitored.

The

risk register is discussed and monitored at

University Executive Board, Finance & Resources

and Audit & Risk Committee and at Council.

The

principal risks to the University and how they are

being mitigated are shown in the tables on pages

40 to 41.

The University’s capital commitments of £5.0m

(2021 £44.1m) are significantly less at the

reporting date than the prior year as a result of the

estates upgrade being substantially complete by

the year end.

Our operating lease commitments at

£39.6m (2021 £42.4m) are also less as the

University seeks to divest itself of leased premises

where possible.

Significant risks still ahead

Despite successfully managing the challenges of

the pandemic the University still faces significant

uncertainties and risks. Future U.K. and Welsh

Government policy could have a major impact on

the funding of higher education. The global

response to the pandemic and geopolitical tensions

may affect the international student market while at

home the sector faces major challenges on

inflation, pay and pensions.

We remain focused on delivering an excellent

student experience alongside our five priorities of

the health and wellbeing of our staff and students,

maintaining

financial

sustainability,

improving

student satisfaction and experience, supporting

research grants and contracts, and continuing to

contribute to our civic mission.

Financial Review

28

A cautious financial outlook

Whilst we face some significant political and

economic risks and continued uncertainty about the

global pandemic, we remain cautious but optimistic

about the future.

The successful completion of our major capital

investment programme creates some exciting

opportunities

for

our

teaching

and

research

activities.

We have been encouraged by the strong demand

from students to study at Cardiff and we will

continue to focus on providing students with a

positive experience in a safe campus environment.

This will require continued investment in teaching

support. We expect expenditure to increase as we

return to more on-campus activities. The loss of

one-off income support during the pandemic will put

added pressure on our financial performance that

will

require

continued

strong

financial

management.

The University has a strong balance sheet and

sufficient liquidity to deal positively with the

uncertainties and opportunities that the future

holds.

Darren Xiberras

John Shakeshaft

Chief Financial Officer

Chair of Finance

& Resources

Committee

24 November 2022

Financial Review

29

Environmental reporting

Cardiff University is committed to leadership in

sustainability and improving our environmental

performance. Our vision is towards building an

inclusive, sustainable, and resilient future for our

community and to bring about environmental

benefits not only to Cardiff and Wales but to the

wider world. It is crucial to develop environmental

sustainability as an integral part of our values and

to

embed

the

United

Nations

Sustainable

Development Goals into all aspects of our academic

and operational activities.

We will promote sustainability through education,

dissemination, and direct participation, enabling

students and staff to make positive changes to our

environmental impact, in particular our declaration

of a Climate Emergency and our aim to become

carbon net zero (Scopes 1 and 2) by 2030. We will

empower our students, graduates, and staff to

become sustainable citizens who make a positive

contribution to society and are active within their

communities.

We

will

ensure

sustainable

development is a key consideration in all major

decision making, promote sustainability issues and

principles with all staff, students and stakeholders

and enable the application of our innovative

research to improve global sustainability.

Our underpinning goals are adapted from the United

Nations Sustainable Development Goals, the Welsh

Government’s Environment Act and the Welsh

Government’s Well-being of Future Generations Act,

Well-being Goals. These are as follows:

-

A prosperous University - An innovative,

productive, and low carbon community which

recognises the limits of the global environment

and therefore uses resources efficiently and

proportionately including acting on climate

change

-

A resilient University - A University which

maintains and enhances a biodiverse natural

environment

with

healthy

functioning

ecosystems that support social, economic, and

ecological resilience, embedding the capacity

to adapt to change

-

A healthier University - A University which

provides facilities for and encourages staff and

students to make healthier food, lifestyle, and

travel choices which in turn help to improve

wellbeing and reduce pollution both locally and

globally.

-

A globally responsible University - A University

which will take account of the impact of its’

activities on global sustainable development

and global well-being. We will purchase clean

-

energy and adopt responsible consumption

practices for all goods and services we procure

and use. We will also actively enable our

innovative

research

to

improve

global

sustainability.

Our aims, by 2023, are:

•

We will reduce scope 1 and 2 emissions by

at least 15%

•

Any refurbishment projects in a building

over £250,000 will show a net reduction in carbon

emission

of

30%

compared

to

the

original

installation

•

Carbon modelling will be initiated to

establish lifecycle costings for all new buildings and

assets based on the realistic life expectancy of each

asset

•

All operational University buildings and

laboratories will take part in our environmental

sustainability behavioural change programme –

following the Green impact and LEAF programs.

Carbon emissions

An Environmental Sustainability Sub Committee

chaired by the Deputy Vice-Chancellor has been

established and will be responsible for taking

forward our carbon net zero work over the coming

years. We have updated our commitment to achieve

carbon net zero for scope 1 (direct emissions) and

2 (indirect emissions) by 2030 and before 2050 for

scope 3 (indirect emissions).

We will undertake annual emissions analysis and

reporting to assess the impact of the carbon

mitigation measures we implement.

Transport and Travel

An umbrella Travel Plan has been developed to

manage the impact that travel generated by staff

and students has on the local environment as well

as addressing other objectives around health and

wellbeing and the cost and convenience of travel.

A travel hierarchy is at the core of the Travel Plan

which places active travel modes as the priority.

The Travel Plan is based on the results of both a

staff and student travel survey as well as an

updated site audit and review of local transport

provision and infrastructure.

A series of measures are included which will be

delivered University-wide as well as site specific

measures to improve access by sustainable modes

to some buildings or sites.

Environmental Reporting

Financial Review

30

Reporting of transport related carbon emissions is

being developed to support the monitoring and

evaluation of the success of the Travel Plan which

will be implemented over the next five years.

Specific focus is given to areas that are likely to

generate the greatest impact including a review of

the University fleet and addressing the amount of

business travel that is undertaken.

Waste and Recycling

Following transformation of University Waste and

Recycling

facilities

(having

been

successfully

awarded £1m WG Circular Economy funding), there

has been a significant increase in recycling, and a

notable decrease in the quantity sent for energy

recovery.

Having successfully transitioned to full material

segregation at the point of disposal, we are ahead

of many in Wales, creating less contamination and

better quality recyclate.

We have retendered and re-awarded our General /

Domestic Waste and Recycling contract which was

awarded to Biffa Waste Services, and we look

forward to forging a successful partnership.

THE Impact Rankings

The Times Higher Education (THE) Impact Rankings

provide the only global performance table that

assess universities against the United Nations’

Sustainable Development Goals (SDGs). Calibrated

indicators provide comprehensive and balanced

comparisons across three broad areas: research,

outreach and stewardship.

The University increased its submission of evidence

for six SDGs out of 17 in 2021 to 10 in 2022. The

2022 results ranked the University in the 101-200

band globally. Our overall score improved from

77.9% to 88.5%.

Three SDGs were ranked in the top 50 globally:

SDG15: Life on Land (26); SDG16: Peace, Justice,

and Strong Institutions (38) and SDG3: Good Health

and Wellbeing (41). Four SDGs were ranked in the

top 20 in the UK: SDG3: Good health and wellbeing

(4); SDG15: Life on land (8); SDG14: Life below

water (10); SDG16: Peace, justice, and strong

institutions (11).

Education for Sustainable Development Champions

Network

We have established networks for Education

Sustainable Development Champions across our

Colleges.

The

aim

is

to

understand

how

sustainability

is

currently

being

embedded

throughout our curricula. A survey of current

practices has identified over 80 case studies across

our Schools that address a breadth of global

challenges, enabling our students to engage with

the relationship between their academic disciplines

and all 17 of the UN Sustainable Development

Goals (SDGs). Following this survey, the Champions

will work towards the ambition that all our students

will have the opportunity to engage with the SDGs

during their time with us.

Ecosystem Resilience and Biodiversity Action Plan

The

University's

Ecosystem

Resilience

and

Biodiversity Action Plan (ERBAP) was established in

2020 and included the Key Performance Indicator

of enhancing biodiversity across 30% of the

University’s estate by 2023. In line with this

ambitious aim, we have identified key sites across

the University for enhancing green infrastructure by

planting new trees. These trees will be sourced and

planted during the winter of 2022, in collaboration

with Cardiff City Council’s Coed Caerdydd program,

with the University contributing to the Council’s aim

to increase canopy cover across the city to 25% by

2030. We will continue to characterise our existing

tree stock to fully understand the carbon we are

currently sequestering and will continue to enhance

the biodiversity across the estate with a network of

low maintenance and no mow areas established by

February 2023. In 2022, a team of Masters

students in the School of Architecture produced a

tree planting guide to ensure we plant the ‘right

trees in the right place’, according to local green and

grey infrastructure constraints across the estate.

We have created enhance meadows and other

wildlife friendly areas across Cathays Park and will

commence a large characterisation and monitoring

program in 2023.

Hedgehog Friendly Campus

The University was awarded Bronze Accreditation by

the Hedgehog Friendly Campus campaign in

January in recognition of the efforts of staff and

students in making the campus a better habitat for

the species.

Building on that work, in March, we were awarded

an Earth Hour 2022 Community Activity Grant for

our ‘HogBuzz’ campaign. This helped us continue to

raise awareness about the campaign with staff and

students, acquire more footprint tracking tunnels,

two wildlife cameras, and wildflower seeds plus

planting equipment. We also ran an event that

included wildflower planting and hedgehog survey

training sessions and continued to work on the

development of our wildlife corner outside our Main

Building.

Environmental Reporting

31

We confirmed 12 sites with hedgehog presence on

our campus and over the year have transformed

certain areas to support hedgehogs and other

species. This includes installing five hedgehog

houses across our site and creating wildlife and

wellbeing areas around parts of campus. This

includes planting wildflowers, installing bug hotels

and

bird

baths,

creating

hedgehog

nesting/hibernation

areas,

log/leaf

piles

and

hoverfly lagoons.

We also took our work out to the wider community,

engaging with four primary schools in south Wales

in online sessions and in-person, teaching children

about hedgehogs and how to build hedgehog

houses.

The University is now working towards the Silver

Accreditation from the Hedgehog Friendly Campus

campaign.

Changing Steps Cardiff

Changing Steps is a free to join rewards programme

funded by the University. It is designed to help staff

and students get around more sustainably. It

rewards sustainable travel for commuting and

leisure trips to and from campus, and encourages

regular walking, running, wheeling, and cycling

activity for health and wellbeing.

99,428 active and sustainable journeys were

recorded on the Changing Steps Cardiff app

between 27 September 2021 and 17 June 2022,

with an average of 182 journeys per participants.

Walking was the most popular activity accounting

for 78% of total activity with cycling and bus travel

being 10% and 5% respectively.

Environmental Reporting

Public Benefit Statement

32

Cardiff University is a registered charity (no.

1136855). It exists to create and share knowledge

and to educate for the benefit of all. Its Royal

Charter, first granted in 1884, sets out its

constitutional arrangements and objects. Embodied

within the objects is the fundamental principle of

the advancement of education, empowering the

University to research, teach, examine, and award

degrees. The objects also contain obligations to

develop the character of students, promote health

and welfare—especially in Wales— and contribute to

social, cultural, and economic development. A

member of the Russell Group of research-intensive

universities, Cardiff University sees fundamental

research as essential to human aspiration and

critical to the development of cultural artefacts,

technologies and services that improve the quality

of life for all.

In setting and reviewing the University’s objectives

and activities, the University’s Council has had due

regard to the Charity Commission’s guidance on the

reporting

of

public

benefit,

particularly

its

supplementary guidance on the advancement of

education. The Way Forward 2018–2023 (Recast

Covid-19) sets out the University’s strategic themes,

which are summarised below.

Education and Students

The

University

provides

an

educationally

outstanding and consistently high-quality student

experience, driven by creativity and curiosity, which

seeks to enhance learning and support student life.

During the unprecedented times of Covid-19, many

aspects of our provision have been provided in a

remote, online and now blended environment, and

students have benefited from continued online

support and education provision to allow them to

progress, graduate and gain employment or further

study. Our priorities remain to provide a high-quality

student experience, maintain academic standards

of our degrees, and ensure the safety and wellbeing

of our staff and students. Building on our strong

track record in widening participation, we continue

to prioritise ensuring that students from a variety of

backgrounds have access to the benefits of higher

education, and this is also coupled with work on

retention and student success. In our blended

provision,

combining

face-to

face

classroom

methods with computer mediated activities or

online provision, students are benefitting from a

pedagogic high-quality approach to digital learning

which permits them to succeed, and to continue on

their inspiring education journey.

Research and Innovation

Through its research, the University has been fast

acting in its response and is actively contributing to

Covid-19 recovery efforts both in relation to tackling

the disease and combatting the wider societal

challenges post-Covid-19. We have continued to

support our staff and students during this difficult

time, ensuring that where safe and possible to do

so, research has continued allowing us to contribute

towards tackling critical global issues that require

cross disciplinary co-operation. For example, our

researchers are addressing major challenges facing

society, the economy, and the environment in

Wales,

in

the

UK

and

globally,

delivering

breakthroughs in areas such as mental health,

compound semiconductors, astronomy, climate

change and creative industries. The University has

also established itself as the Home of Innovation

with the implementation of a new innovation

strategy ensuring that the impacts from its research

make a difference, often working in partnership with

business, public and third sector organisations. We

are investing in bespoke facilities for innovative

collaborations with industry, government, and wider

society, and enhancing support for students to

engage in innovation and entrepreneurial training.

This ensures all members of Cardiff University can

contribute to the growth of the knowledge economy.

Aligned

to

our

Civic

Mission

activities,

our

researchers also work with local communities,

supporting new forms of education and socio-

economic change in our region.

International

The University is a global institution with over 9,500

(more than 25% of the total student body)

international students (EU included) from more than

130 countries and formal links with more than 300

institutions worldwide. It collaborates with business

and education partners all over the world, including

formal

strategic

partnerships

with

Xiamen

University and Beijing Normal University in China,

University of Campinas in Brazil, University of

Bremen in Germany, and University of Waikato in

New Zealand. The University’s strong links with

institutions worldwide mean that many of its

students have the opportunity to study, work, or

volunteer abroad. It attracts the highest calibre of

academics and researchers from around the world.

International staff make up more than 30% of the

academic body, enhancing the learning experience

for students and bringing a global perspective to its

research. Its researchers collaborate with partners

worldwide to tackle global issues such as climate

Public Benefit Statement

33

change adaptation for improved food and water

security, mitigation of CO2 emissions through

storage

in

coal

deposits,

and

the

genetic

architecture of mental disorders.

Civic Mission

In response to the social and health crisis caused

by Covid-19, the University has reshaped its civic

mission. It is committed to using its research

strengths,

expertise,

and

knowledge

to

help

government, health services and wider society to

revive and renew the Welsh economic, social, and

cultural landscape in response to the pandemic.

The University’s research strengths will be utilized

to make greater civic mission contributions to new

societal challenges faced by Wales, aligned to

successful revival and renewal. Supporting job

creation is of paramount importance given the

economic impact of the virus. Now more than ever,

the University will continue to contribute to

innovation in education with primary and secondary

schools

and

further

education

colleges.

Its

partnership with the NHS will achieve much greater

salience. The University has a strong sense of place

in the Cardiff and South Wales region and will

continue to enhance and celebrate the Welsh

language culture of its campus in line with its Welsh-

Language Strategy.

Statement of Corporate Governance

34

The University’s legal status derives from a Royal

Charter first granted by Queen Victoria in 1884 to

found the University College of South Wales and

Monmouthshire. The University’s objects, powers and

framework of governance are set out in its Charter

and its supporting Statutes, the latest amendments to

which were approved by the Privy Council in 2022.

Embodied within the Charter are fundamental

principles such as the University’s power to teach,

examine, carry out research and award degrees. The

Charter also gives Council its ‘supreme authority’,

establishes Senate for ‘ordering of the academic

affairs’, and establishes the President and Vice-

Chancellor as ‘the chief academic and executive

officer’ and Chair of Senate.

The University was registered as a charity in 2010

(1136855).

Council

The Council is the governing body and thus the

supreme authority of the University, which means that

it is ultimately accountable for the conduct and

activity of the University and its representatives.

The

Council is responsible for the administration and

management of the affairs of the University and for

agreeing the general strategic direction of the

institution.

The Council is committed to conducting its business

in accordance with the Nolan principles identified by

the

Committee

on

Standards

in

Public

Life

(selflessness, integrity, objectivity, accountability,

openness, honesty and leadership). The Council

complies with the Committee of University Chairs

(CUC)

Higher

Education

Code

of

Governance

published in September 2020 and the CUC Audit

Committee Code of Practice (May 2020), with a

number of areas identified for enhancement during

the coming year to strengthen the evidence for

compliance,

including

documenting

existing

processes and policies, and approving the final part

of the University Scheme of Delegation. The University

has

also

adopted

the

Universities

in

Wales

Governance Charter.

In the preparation of this statement the Council of the

University has had regard for the guidance issued by

the Charity Commission:

(i)

that there was no element of the CUC HE

Code of Governance with which the University’s

practice was not consistent; and

(ii)

that the University’s fundraising policies and

practices are fully aligned with the Fundraising

Regulator’s requirements set out in the University’s

Code

of

Fundraising

Practice.

No

fundraising

complaints were received during the reporting period.

The University’s commitment to all funders of the

University,

and

additional

commitments

to

philanthropic donors to the University is available on

the University’s website:

https://www.cardiff.ac.uk/donate/other-ways-to-

give/funders-rights

The

University

undertakes

regular

Council

effectiveness reviews with the last external review

undertaken in 2021. The Report concluded that the

University’s

overall

governance

effectiveness

is

satisfactory, with no material weaknesses. An action

plan

to

support

the

implementation

of

the

recommendations was approved by Council in July

2021 and, during 2021-22, progress to complete the

actions has been monitored by the Governance

Committee. The majority of actions have now been

completed with the remainder on track for completion

during 2022-23.

The Governance Committee also receives regular

progress

reports

against

outstanding

recommendations

from

earlier

reviews

of

governance, including the Universities in Wales

Governance Charter (Camm Review) Commitment to

Action.

In light of these, the Council has reflected

during 2021-22 on its culture as a governing body and

that of the University more broadly and intends to put

in place a cultural statement to ensure alignment

between the Strategic Plan and working practices,

and to integrate culture within its mechanisms for

decision making and reporting.

The University is committed to the highest standards

of openness, probity and accountability, and seeks to

conduct its affairs in a responsible manner and has in

place a Whistleblowing (Public Interest Disclosure)

Policy to enable staff, students and other members of

the University to raise concerns which are in the public

interest.

Over the year, we have utilised the positive benefits of

hybrid

(virtual

and

face

to

face)

working

to

communicate with key stakeholders on a variety of

activities.

Council Development sessions have

involved the Students’ Union, University Executive

members, and Directors of Professional Services, to

discuss

developments

such

as

international

diversification,

the

impact

of

Covid-19,

Key

Performance

Indicators,

and

culture.

Representatives from Advance HE and HEFCW have

also been involved in our development schedule. The

governing

body

has

been

consulted

on

their

preferences for future stakeholder engagement. The

University Executive Board has undertaken a review

of stakeholder engagement following approval by the

Privy Council for the abolition of the Court, and the

results from this have been shared with the Senate

and the Council.

Statement of Corporate Governance

35

The Council has a majority of members from outside

the University (described as lay members).

Council

membership also includes staff and students. Council

lay members are recruited in an open, fair and

transparent manner and due regard is given to

equality and diversity, the need to balance skills and

expertise as well as geographical location.

With respect to boardroom diversity, we continue to

build on our Strategic Equality Plan actions to

promote and develop an inclusive (internal) culture

and governance by addressing diversity of decision-

making committees.

We have improved our data

capture, and guidance on inclusivity for committee

meetings, and continue to use this to inform lay

member recruitment and induction. We plan to

develop this work further during 2022-23 by

formalising our policy on diversity and membership.

Council members also participated in a workshop on

equality, diversity and inclusion to reflect on Council’s

role and priorities for the year. In 2021 we became a

launch

partner

with

Perrett

Laver’s

Governor

Apprenticeship Scheme, with our first governor

apprentice successfully participating in the scheme

during 2021-22.

The scheme supports boardroom

diversity by enabling a diverse and talented pool of

candidates

otherwise

lacking

in

board

room

experience, to gain that experience.

The Nominations Sub-Committee (a sub-committee of

the Governance Committee) is responsible for

overseeing

the

recruitment

process

and

recommending new lay members to Council for

approval.

Each year the Committee reviews a

schedule of lay membership to review term end dates

to consider succession planning. All vacancies for

Independent Lay Members of Council are advertised

externally, as well as being communicated to staff,

students, and current members of Council, with

expressions of interest particularly welcome from

under-represented groups.

In 2021-22, the University

reviewed the process for recruiting a Chair and

appointing a Vice-Chair, prior to the initiation of a

recruitment campaign for a new Chair of Council. By

revising its role description and using an external

recruitment firm, the University was able to ensure a

broad and diverse candidate pool could be reached.

We have also reviewed and introduced a revised skills

matrix which is used by the Governance Committee to

inform the recruitment needs of Council.

Lay members do not receive any payment, apart from

the reimbursement of expenses, for the work they do

for the University. On appointment, Council members

are required to complete a Register of Interests entry.

The current Register of Interests is publicly available

on our website:

https://www.cardiff.ac.uk/about/organisation/gover

nance/council

Throughout the 2021-22 academic year, the Council

met six times and approved a number of business

cases, reviewed strategic direction and decision

making across a number of university activities to

include the establishment of the Cardiff University- led

Cyber Innovation Hub, delivery of the Education and

Student

Sub-Strategy,

and

investment

in

the

University and the estate.

Council has continued to

oversee the ongoing University response to the

COVID-19 pandemic. Council held an extraordinary

meeting to consider the appointment of the External

Auditor following a competitive tender exercise that

was held during the year. KPMG were appointed as

the University’s External Auditor from June 2022.

All new members of Council receive an induction to

the University and their responsibilities as a member

of

the

governing

body.

There

is

an

annual

development programme which focuses on sharing

information and creates opportunities for discussion

for Council members and the University’s Executive

Team.

Feedback is collated from all members of

Council to inform an annual development schedule.

The induction pack has been reviewed to ensure the

currency

of

the

information

provided

to

new

members.

The Chair of Council holds an annual appraisal with all

members of Council and this feedback is used to

inform and improve the effectiveness of the governing

body. The outgoing Chair of Council held appraisals

during Summer 2021 and the new Chair, appointed

during the year, will repeat this exercise in Autumn

2022. The Audit and Risk Committee also conducts

an annual review of their effectiveness, which in

2021-22 was via a self-evaluation survey. The next

Governance Effectiveness Review is planned for

2024.

Accountable Officer

The chief executive and principal academic and

administrative officer of the University is the Vice-

Chancellor, who has a general responsibility to the

Council for maintaining and promoting the efficiency

and good order of the University.

Under the Terms and Conditions of Funding between

the University and the Higher Education Funding

Council

for

Wales,

the

Vice-Chancellor

is

the

Accountable Officer of the University and in that

capacity can be summoned to appear before the Audit

Committee of the Welsh Government.

Management

As chief executive of the University, the Vice-

Chancellor has responsibility for the development of

institutional strategy, the identification and planning

of new developments, and the shaping of the

Statement of Corporate Governance

36

institutional ethos. The Deputy Vice-Chancellor, Pro

Vice-Chancellors, University Deans and the senior

professional officers all contribute in various ways to

these aspects of the work, but ultimate authority rests

with the Council.

Council Membership

37

All of those persons listed below served as Charity Trustees throughout the year covered by this Report.

Unless otherwise indicated they also occupied these positions on the date on which the Report was approved.

With effect from 01 January 2022, Mr Patrick Younge was appointed as the new Chair of Council.

Trustees appointed after 1 August 2022 and up to the signing of the annual report are included for information

with no attendance reported for the 2021-22 academic year.

Member attendance is reviewed with the Chair of Council as part of the annual member appraisal process,

unless already discussed during the year.

NAME

Category

Attendance

at Council

1.

Professor Rudolf Allemann

Employee

6/7

2.

Professor Rachel Ashworth

Employee

6/7

3.

Paul Baston

Employee

4/7

4.

Professor Marc Buehner

Employee

4/7

5.

Ricardo Calil (term ended on 31 Jul 22)

Employee

7/7

6.

Hannah Doe, Students’ Union (term ended on 30 Jun 22)

Student

5/6

7.

Gina Dunn, Students’ Union

Student

7/7

8.

Judith Fabian

Lay

7/7

9.

Professor Dame Janet Finch

Lay

6/7

10.

Angie Flores Acuña (appointed from 1 Jul 22)

Student

1/1

11.

Professor Ken Hamilton (term ended 31 Jul 22)

Employee

4/7

12.

Michael Hampson

Lay

5/7

13.

Chris Jones

Lay

5/7

14.

Jan Juillerat, Vice Chair of Council

Lay

7/7

15.

Jeremy Lewis (appointed from 1 Aug 22)

Lay

-

16.

Dr Joanna Newman

Lay

3/7

17.

Professor Stuart Palmer, Chair (term ended 31 Dec 21)

Lay

2/2

18.

Suzanne Rankin (appointed from 28 Apr 22)

Lay

1/2

19.

Professor Colin Riordan, Vice-Chancellor

Employee

6/6

20.

Dr Pretty Sagoo

Lay

3/7

21.

David Selway (appointed from 01 Aug 22)

Lay

-

22.

John Shakeshaft

Lay

7/7

23.

David Simmons (term ended 31 Jul 22)

Lay

3/7

24.

Judge Ray Singh (term ended 31 Jul 22)

Lay

5/7

25.

Dr Janet Wademan (term ended 31 Jul 22)

Lay

6/7

26.

Professor Damian Walford Davies

Employee

5/7

27.

Professor Stuart Walker (resigned 22 Feb 22)

Lay

3/4

28.

Jennifer Wood (appointed from 01 Aug 22)

Lay

-

29.

Agnes Xavier-Phillips

Lay

7/7

30.

Patrick Younge, Chair of Council (appointed from 01 Jan 22)

Lay

5/5

Council Membership

38

The

University

must

adopt

a

definition

of

independence for lay membership of governing

bodies to provide a robust approach to identifying

and managing conflicts of interest

1

.

How is independence defined and tested?

There are several circumstances which may prevent

a person being appointed as an independent

member of the governing body. The Governing

Body’s Nominations Sub-Committee has oversight

of the appointment process and responsibility for

considering these factors.

In response to the Universities in Wales Charter

Commitment to Action, the University has adopted a

Statement of Independence based on the Welsh

Secretaries and Clerks Group guidance, including a

Definition of Independence and Principles of

Independence for lay membership.

The University

defines ‘senior employees’ as University Executive

Board members in this context.

The robust process for ensuring independence

through the recruitment and training of members is

also set out in the Statement of Independence.

When considering applications and interviewing

prospective new governors, recruitment panels shall

establish

whether

the

individual

has

any

relationships or statuses that might give rise to a

conflict of interest or loyalty, as defined in the

Principles of Independence and including being

related to any senior employee of an organisation

gaining a pecuniary advantage from the University.

The University’s Statement of Independence is

available on the University’s governance webpages

at:

https://www.cardiff.ac.uk/about/organisation/gov

ernance/council/

How does the governing body manage conflicts of

interests?

A Register of Interests of all Council and Audit and

Risk Committee members is maintained by the

Secretary to Council and is available publicly on the

University’s governance webpages at:

https://www.cardiff.ac.uk/about/organisation/gov

ernance/council/

If any member of a Committee has any pecuniary or

other interest, direct or indirect, in any Contract or

proposed

Contract

or

other

matter

involving

financial transaction, that interest shall be disclosed

1

Source: The Governance Charter for Universities in Wales –

Commitment

to

Action

is

available

at

http://uniswales.ac.uk/media/Universities-of-Wales-

to the Committee as soon as practicable. All

Committees request that Members and Officers

disclose any interests at the start of each

Committee meeting, and the Member shall take no

further part in the consideration or discussion of, or

vote on, any position with respect thereto. A

member of any Committee is not considered to have

a pecuniary or personal interest in matters under

discussion merely because he/she is a member of

staff or student at the University.

As set out in the Statement of Independence section

4, the University Secretary (as Clerk to the governing

body) is accountable for highlighting issues of

independence or conflict to the Chair.

The

University

is

committed

to

the

highest

standards of openness, probity, and accountability,

and seeks to conduct its affairs in a responsible

manner.

The

Whistleblowing

(Public

Interest

Disclosure) Policy enables staff, students, and other

members of the University to raise conflict of

interest concerns which they feel have not been

addressed through existing procedures.

Governance-charter-committments-FINAL-FOR-PUBLICATION-

CL.pdf

Statement of Internal Controls

39

Principal Risk and System of Internal Control

Council has responsibility for maintaining a sound

system

of

internal

control

that

supports

the

achievement of the University’s policies, aims and

objectives, while safeguarding public and other funds

and assets for which it is responsible.

The system of internal control is designed to manage

rather than eliminate the risk of non-achievement of

policies, aims and objectives; it can therefore only

provide reasonable and not absolute assurance of

effectiveness. The system of internal control is based

on an ongoing process designed to identify the

principal risks to the achievement of the University’s

policies, aims and objectives, to evaluate the nature

and extent of those risks and to manage them

effectively.

Council confirms that this process has been in place

and operating effectively for the year ended 31 July

2022 and up to the date of approval of the financial

statements and accords with HEFCW guidance.

As the governing body, Council has responsibility for

ensuring that a sound system of control is maintained

and reviewing the effectiveness of the arrangements.

It meets at regular intervals to consider the plans and

strategic direction of the institution and receives

assurance reports from the Chair of the Audit and Risk

Committee concerning internal control.

The Audit and Risk Committee receives regular

reports

from

the

Internal

Audit

service.

An

independent opinion is provided on each report

relating to the adequacy and effectiveness of the

University’s system of internal control, together with

recommendations for improvement.

A summary of

the work undertaken by the Internal Audit service is

provided in an Annual Report. This provides an

independent

opinion

on

the

adequacy

and

effectiveness of the University’s arrangements for the

provision of risk management, internal control,

governance and value for money and data quality.

Considering the completion of the approved audit

plan for 2021-22 and the supporting information; the

University’s arrangements for risk management,

control and governance, and value for money and

data quality are adequate and effective.

The Vice Chancellor is the University’s Accountable

Officer, responsible for providing HEFCW with clear

assurances that the institution has an effective policy

of risk management. The University Secretary is the

Chief Risk Officer, responsible for promoting effective

risk management across the University.

The University Executive Board has responsibility for

the management of risk across the University,

assessing the University’s risk appetite, updating the

University’s strategic risk register and reporting on

risk to the Finance and Resources Committee, Audit

and Risk Committee, and Council throughout the year.

The University operates a hierarchical system for risk

management. Risks within individual teams and

projects are reported to the relevant school or

department on a quarterly basis. The schools and

departments then escalate any key risks to the

Colleges

and

Professional

Services

Board

for

consideration and inclusion in their risk registers.

Colleges and Professional Services Board then report

their risk registers to the University Executive Board

on a quarterly basis. This ensures that governance,

management, reputational, quality and financial risks

from across the University are considered for

incorporation into the University’s strategic risk

register.

The University produces a merged risk reporting

structure which combines teaching and assessment,

student

life,

research

and

operations

with

school/departmental/operational group systems, the

focus of risk reporting being on the former. Risks

identified in the strategic register are also cascaded

down the hierarchy to ensure that any mitigating

actions required are put in place.

All staff have a part to play in protecting the University

from undue exposure to risk, whether reputational,

financial, legal or in terms of its core activities of

teaching and research and are encouraged to be

aware

of

the

implications

and

potential

consequences of their actions for the University.

Statement of Internal Controls

40

Principal Risks

Risk area

Risk description

Risk management

Student

Recruitment

The University fails to

recruit and retain a

strategically desirable

number, quality, and

diversity of students,

including high-quality EU

and international

students.

The University’s Recruitment and Admissions Strategy Group has

delegated authority to take strategic actions in relation to

recruitment, to ensure target entrants are met. Student numbers

are reviewed and monitored by this group on a regular basis to

ensure that the University Executive Board has clear sight of

predicted enrolments.

International scholarships have been extended to include further

awards for India, Malaysia, and awards for EU domiciled students

for all years of study introduced.

Virtual recruitment events and an enhanced e-comms programme

have been implemented as well as a return to face-to-face

recruitment events.

.Conversion activities including subject-specific offer holder

communications/virtual tours, calling and Unibuddy campaigns

which enable one-to-one interaction with applicants.

Financial

Sustainability

The University’s

operational costs,

including the costs of

repairing and

maintaining the estate,

and capital plans

outweigh the income the

University can generate

or receives in grants,

making it financially

unsustainable.

The University deploys detailed budget control and monitoring

procedures are in place including zero-based budgeting.

There

are

regular

discussions

between

Recruitment

and

Admissions and Finance to model fee income.

Research and Change projects are assessed for return on

investment to ensure delivery on expected benefits.

Integrated planning process has been launched to ensure delivery

of robust academic and financial plans.

All mitigating actions have resulted in a further improved financial

position.

Cyber Security

The University fails to

prevent a cyber security

incident

Cardiff University has a multi-layered approach to Cyber Security.

We are prepared for cyber-attacks through scenario planning and

testing the effectiveness of both business continuity and disaster

recovery contingency plans.

The University is regularly audited by

cyber experts and is currently accredited for both Cyber Essentials

(this is cyber assurance provided by the National Cyber Security

Centre) and PCI DSS compliance.

The University has a compulsory

all staff information security training module.

We have protected the University through the use of best-in-class

cyber security tools.

We detect threats using the latest national and international threat

intelligence data combined with a full suite of monitoring tools.

Statement of Internal Controls

41

Principal Risks

continued

Risk area

Risk description

Risk management

Regulatory

Compliance

The

University

is

in

breach of regulations.

A detailed Regulatory Compliance Risk Assurance Map has

been completed and a follow-up review undertaken to outline

the areas where additional measures would have the greatest

impact on reducing the risk.

In addition, the Assurance and Risk Group has overseen the

creation of a risk assurance heatmap. This allows the University

to readily identify the risks using the internal audit findings as

to the level of assurance in place and the impact on the

University should that risk crystallise.

Net Zero

The University does not

achieve

it’s

commitment to achieve

reductions

in

its

emissions to net zero by

2030 (scopes 1 & 2).

The Strategic Environmental Sustainability Sub-Committee has

identified the staffing required to enable a step-change;

recruitment is under way for professional staff in this area now.

Analysis of our biggest carbon emitting buildings was completed

in summer 2022; we are now developing quick win projects to

maximise impact of short-term initiatives.

We are exploring Welsh Government backed loan schemes to

enable investment into short- and medium-term carbon

reduction plans.

We are confirming the University carbon emissions baselines,

aligned to Welsh Government reporting requirements by June

2023. A tree-planting programme in partnership with Coed

Caerdydd is in train.

We are finalising our carbon offset policy now and will draft our

roadmap to Net Zero (scopes 1 & 2) by 2030.

The University is a member of Cardiff City Council One Planet

Strategy Group and UUK groups relating to environmental

sustainability.

Responsibilities of the Council of Cardiff University

42

In accordance with the University’s Charter, the

Council is responsible for the administration and

management of the affairs of the University,

including ensuring an effective system of internal

control.

The Council is responsible for ensuring the

University and Group Financial Statements are

prepared in accordance with United Kingdom

Generally Accepted Accounting Practice (United

Kingdom Accounting Standards, comprising FRS

102 “The Financial Reporting Standard applicable

in the UK and Republic of Ireland” and applicable

law),

the

University’s

Charter,

the

Accounts

Direction issued by HEFCW, the Statement of

Recommended Practice: Accounting for Further and

Higher Education Institutions (2019), the Charities

Act 2011

and other relevant accounting standards.

Within the Terms and Conditions of Funding

between the Higher Education Funding Council for

Wales (HEFCW) and the Council of the University,

the Council, through its Accountable Officer, is

required to prepare Financial Statements for each

financial year which give a true and fair view of the

state of affairs of the University and its subsidiaries

and of the surplus or deficit, statement of

movements on reserves and cash flows for that

year.

The Council is responsible for keeping

adequate accounting records that are sufficient to

show and explain the University’s and Group’s

transactions and disclose with reasonable accuracy

at any time the financial position of the University

and Group and to enable it to ensure that the

Financial Statements comply with applicable law

and regulations.

The Council is also responsible for safeguarding the

assets of the University and Group and for taking

reasonable steps for the preventions and detection

of fraud and other irregularities.

In preparing these Financial Statements, the

Council is required to:

•

select suitable accounting policies and then

apply them consistently.

•

observe the methods and principles in the

Statement

of

Recommended

Practice:

Accounting for Further and Higher Education

(2019 edition).

•

make judgements and estimates that are

reasonable and prudent.

•

state

whether

applicable

UK

Accounting

Standards, comprising FRS 102, have been

followed, subject to any material departures

disclosed and explained in the financial

statements; and

•

prepare the financial statements on the going

concern basis unless it is inappropriate to

presume that the University will continue in

business.

The Council has taken reasonable steps to:

•

ensure

that

funds

from

HEFCW,

Welsh

Government and other Funding Bodies are

used only for the purposes for which they have

been given and in accordance with the HEFCW

Terms and Conditions of Funding; and any other

conditions which HEFCW or any other Funding

Body may from time to time prescribe.

•

ensure that there are appropriate financial and

management controls in place to safeguard

public funds and funds from other sources.

•

safeguard the assets of the University and its

subsidiaries and prevent and detect fraud; and

•

secure the economical, efficient and effective

management of the resources and expenditure

of the University and its subsidiaries.

Any system of internal financial control can,

however, provide reasonable, but not absolute,

assurance against material misstatement or loss.

On behalf of the Council

Professor Colin Riordan

Accountable Officer

24 November 2022

Independent

auditor’s report

To the Council of Cardiff University

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

1.

Our opinion is unmodified

We have audited the financial statements of Cardiff

University (“the University”) for the year ended 31 July

2022 which comprise the Consolidated and

University Statements of Comprehensive Income, the

Consolidated and University Statements of Changes

in Reserves, the Consolidated and University

Statement of Financial Position, and the Consolidated

and University Statements of Cash- flow and related

notes, including the Statement of Accounting Policies.

In our opinion the financial statements:

—

give a true and fair view of the state of the

Group’s and of the University’s affairs as at 31

July 2022 and of the Group’s and of the

University’s income and expenditure, gains and

losses, changes in reserves, and cash-flows, for

the year then ended;

—

have been properly prepared in accordance with

UK accounting standards, including FRS 102 The

Financial Reporting Standard applicable in the UK

and Republic of Ireland, and with the 2019

Statement of Recommended Practice –

Accounting for Further and Higher Education; and

—

have been prepared in accordance with the

requirements of the Charities Act 2011.

Basis for opinion

We have been appointed as auditor under the

Charters and Statutes of the University and in

accordance with section 144 of the Charities Act 2011

(or its predecessors) and report in accordance with

regulations made under section 154 of that Act.

We conducted our audit in accordance with International

Standards on Auditing (UK) (“ISAs (UK)”) and applicable

law. Our responsibilities are described below. We believe

that the audit evidence we have obtained is a sufficient

and appropriate basis for our opinion. Our audit opinion

is consistent with our report to the Audit & Risk

Committee.

We were first appointed as auditor by the Council on 7 July

2022. The period of total uninterrupted engagement is for

the one financial year ended 31 July 2022 We have

fulfilled our ethical responsibilities under, and we remain

independent of the Group in accordance with, UK ethical

requirements including the FRC Ethical Standard as

applied to listed public interest entities. No non-audit

services prohibited by that standard were provided.

Overview

Materiality:

group financial

statements as a

whole

£6.0 million

0.95% of Group total income

Coverage

100% of Group total Income

Key audit matters

Recurring risks

Research Grants &

Contract Income

Valuation of pension

liabilities

43

2.

Key audit matters: our assessment of risks of material misstatement

Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the financial

statements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us,

including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the

efforts of the engagement team. We summarise below the key audit matters in arriving at our audit opinion above, together with our

key audit procedures to address those matters and, as required for public interest entities, our results from those procedures. These

matters were addressed, and our results are based on procedures undertaken, in the context of, and solely for the purpose of, our

audit of the financial statements as a whole, and in forming our opinion thereon, and consequently are incidental to that opinion, and

we do not provide a separate opinion on these matters.

The risk

Our response

Group and University: Research

Grants and Contract Income

(£125 million (2021:£113 million))

2021-22 income

The University manages a significant

number of projects from a range of public

and private sources with a variety of

contractual requirements in terms of the

treatment of direct and overhead costs

and other evidence/compliance

requirements.

Research grants and contracts income is

accounted for under the performance

model. Unless specifically disallowed, in

most cases expenditure on the project

funded by the grant is presumed to be the

performance condition and therefore

income is generally recognised in line with

the related expenditure, including

apportioned overhead costs. We consider

there to be a significant risk of fraud and

error in the recognition of research

revenue largely due to inappropriate

apportionment of overhead costs.

There is a related risk of fraud and error in

that non-compliance with grant terms and

conditions could result in income not being

recognised in line with relevant accounting

standards. Non- compliance with grant

terms and conditions may also result in the

claw- back of funding by research funders

We performed the tests below rather than seeking

to rely on the Group’s controls because the nature

of the balance is such that we would expect to

obtain

audit

evidence

primarily

through

the

detailed procedures described.

Our procedures included:

•

We obtained a transactional breakdown

of all research expenditure in the year and

tested a sample to assess whether the

expenditure incurred was in line with the

terms and conditions of the relevant

contract and, where applicable, that

overhead rates had been set at the level

specified in the grant agreement.

•

For a sample of research projects with

underlying milestones, we agreed the

revenue recognised to invoices raised

and cash receipts, and assessed

whether the milestone had been met in

accordance with the grant agreement.

•

We reviewed the reconciliation of research

expenditure to corresponding research

income and agreed that income had been

accounted for in accordance with the

requirements of the relevant accounting

standards.

•

For a sample of research projects with

large accrued and deferred income

balances at year-end, we reviewed the

grant agreements, cash received to date,

and the payment profile to assess whether

research expenditure and income had

been accounted for in the appropriate

accounting period.

•

We inquired with management as

whether there were any disputes or

significant issues on any projects that

could impact on revenue recognition.

Our results

— The results of our testing were satisfactory and

we considered the amount of research grants

and contract income recognised to be

acceptable.

44

The risk

Our response

Group and Parent University:

Pension Liability

Group and Parent University:

Cardiff University Pension Fund:

Net Present value of funded

defined benefit obligations £34.5

million (2021: £101.4 million)

Group and Parent University:

USS : Deficit recovery plan

provisions £199 million (2021:

£84 million))

Subjective valuation

The Group is a member of a number of

defined benefit schemes, including the

Cardiff University Pension Fund (CUPF)

and the Universities Superannuation

Scheme (USS).

Cardiff University Pension Fund

(CUPF)

The valuation of the post retirement

benefit obligations involves the selection

of appropriate actuarial assumptions,

most notably the discount rate applied to

the scheme liabilities, inflation rates and

mortality rates. The selection of these

assumptions is inherently subjective and

small changes in the assumptions and

estimates used to value the University’s

pension liability could have a significant

effect on the financial position of the

University.

The effect of these matters is that, as part

of our risk assessment, we determined

that post retirement benefits obligation

has a high degree of estimation

uncertainty. The financial statements

disclose the assumptions used by the

University in completing the year end

valuation of the pension deficit and the

year on year movements.

Universities Superannuation Scheme

(USS)

While this is accounted for as a defined

contribution scheme a provision is

required to be recognised for the

University’s obligation to fund deficit

payments.

This valuation of this provision involves the

selection of appropriate assumptions,

most notably discount rate and payroll and

headcount growth assumptions The

selection of these assumptions is

inherently subjective and small changes in

the assumptions used to value the group’s

USS pension liability could have a

significant effect on the financial position

of the University.

The USS pension liability at 31 July 2022

was £199 million. This was based on the

valuation set out by the USS review panel

at the time. A non adjusting post-Balance

Sheet event was disclosed reflecting the

impacts of the 2020 scheme valuation,

which could result in a significant increase

in the provision when a new deficit

recovery plan based on the 2020

valuation is agreed and implemented.

We performed the tests below rather than seeking

to rely on the Group’s controls because the nature

of the balance is such that we would expect to

obtain audit evidence primarily through the

detailed procedures described.

Our procedures included:

•

Our actuarial expertise

: We used our own

actuarial specialists to challenge the key

assumptions and estimates used in the

calculation of the retirement benefit

obligations (and USS provision); and

performed a comparison of key assumptions

against our own benchmark ranges derived

from externally available data and against

those used by other universities reporting on

the same period.

•

Assessing external actuaries’ credentials:

We

assessed the competence and independence

of all external actuaries engaged by the Group.

•

Reviewed non actuarial assumptions

: We

reviewed the non-actuarial assumptions used

in the USS provision calculation such as

payroll and headcount increases and

compared assumptions to Group forecasts for

appropriateness.

•

Assessing transparency:

We considered the

adequacy of the Group’s disclosure in respect

of retirement benefits, in particular the gross

defined benefit obligation and USS provision

and the sensitivity of the obligation to the

assumptions used.

Our results

We found the resulting estimates of the CUPF and

USS retirement benefit obligations to be

acceptable.

45

100%

100

3.

Our application of materiality and an overview of the

scope of our audit

Materiality for the Group financial statements as a

whole was set at £6.0 million, determined with

reference to a benchmark of group total income for

2021/22 of £634 million, of which it represents

0.95%.

Materiality for the University financial statements was

set at £5.95 million, determined with reference to a

benchmark of University total income for 2021/22 of

£632 million, of which it represents 0.94%.

We consider total income, rather than a surplus-

related benchmark, to be the appropriate

benchmark as the University is a not-for-profit

organisation.

In line with our audit methodology, our procedures on

individual account balances and disclosures were

performed to a lower threshold, performance

materiality, so as to reduce to an acceptable level the

risk that individually immaterial misstatements in

Group total income

£634 million

4.

Going concern

Group Materiality

£6.0 million

£6.0 million

Whole financial

statements materiality

£3.9 million

Performance materiality

£300k

Misstatements reported to the

Audit & Risk Committee

individual account balances add up to a material

amount across the financial statements as a whole.

Performance materiality was set at 65% of materiality

for the financial statements as a whole, which equates

to £3.9 million for the group and £3.9 million for the

University. We applied this percentage in our

determination of performance materiality based on

this being our first year audit.

We agreed to report to the Audit and Risk Committee

any corrected or uncorrected identified misstatements

exceeding £300k, in addition to other identified

misstatements that warranted reporting on qualitative

grounds.

The scope of the audit work performed was

predominately substantive as we placed limited

reliance upon the Group's internal control over

financial reporting.

We treated the group as one single component.

Group Total Income

Full scope for group audit purposes 2022

The Council has prepared the financial statements on the

going concern basis as it does not intend to liquidate the Group

or the University or to cease their operations, and as it has

concluded that the Group’s and the University’s financial

position means that this is realistic. It has also concluded that

there are no material uncertainties that could cast significant

doubt over their ability to continue as a going concern for at

least a year from the date of approval of the financial

statements (“the going concern period”).

We used our knowledge of the Group, its industry, and the

general economic environment to identify the inherent risks to

its business model and analysed how those risks might affect

the Group’s and University’s financial resources or ability to

continue operations over the going concern period. The risks

that we considered most likely to adversely affect the Group’s

and University’s available financial resources over this period

were:

•

A reduction in tuition fee income

•

Impact of inflation on underlying cost base;

We considered whether these risks could plausibly affect the

liquidity in the going concern period by assessing the degree of

downside assumption that, individually and collectively, could

result in a liquidity issue, taking into account the Group’s current

and projected cash and facilities (a reverse stress test).

Our conclusions based on this work:

•

We consider that the Council’s use of the going concern

basis of accounting in the preparation of the financial

statements is appropriate;

•

We have not identified, and concur with the Council’s

assessment that there is not, a material uncertainty

related to events or conditions that, individually or

collectively, may cast significant doubt on the Group or the

University’s ability to continue as a going concern for the

going concern period; and

•

We found the going concern disclosure in note 1 to be

acceptable.

However, as we cannot predict all future events or conditions

and as subsequent events may result in outcomes that are

inconsistent with judgements that were reasonable at the time

they were made, the above conclusions are not a guarantee

that the Group or the University will continue in operation.

Total Group Income

Group materiality

46

5.

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement

due to fraud

To identify risks of material misstatement due to fraud (“fraud

risks”) we assessed events or conditions that could indicate

an incentive or pressure to commit fraud or provide an

opportunity to commit fraud. Our risk assessment procedures

included:

•

Enquiring of the Audit and Risk Committee, internal audit

and inspection of policy documentation as to the Group’s

high-level policies and procedures to prevent and detect

fraud, including the internal audit function, and the Group’s

channel for “whistleblowing”, as well as whether they have

knowledge of any actual, suspected or alleged fraud.

•

Reading Council and Audit and Risk Committee minutes.

•

Using analytical procedures to identify any unusual or

unexpected relationships.

•

Obtaining a copy of the Group’s risk register.

We communicated identified fraud risks throughout the audit

team and remained alert to any indications of fraud throughout

the audit.

As required by auditing standards, we perform procedures to

address the risk of management override of controls and the

risk of fraudulent revenue recognition, in particular the risk

that management may be in a position to make inappropriate

accounting entries.

We did not identify any additional fraud risks.

We performed procedures including:

•

Identifying journal entries to test based on risk criteria and

comparing the identified entries to supporting

documentation. These included those posted to unusual

accounts and unusual cash and borrowing journals.

Identifying and responding to risks of material misstatement

related to compliance with laws and regulations

We identified areas of laws and regulations that could

reasonably be expected to have a material effect on the

financial statements from our general commercial and sector

experience, and through discussion with the Audit and Risk

Committee and other management (as required by auditing

standards), and discussed with the management the policies

and procedures regarding compliance with laws and

regulations.

As the Group is regulated, our assessment of risks involved

gaining an understanding of the control environment including

the entity’s procedures for complying with regulatory

requirements.

We communicated identified laws and regulations

throughout our team and remained alert to any indications of

non-compliance throughout the audit.

The potential effect of these laws and regulations on the

financial statements varies considerably.

Firstly, the Group is subject to laws and regulations that

directly affect the financial statements including financial

reporting legislation (including related charities legislation,

higher education related legislation and regulation), taxation

legislation, pensions and we assessed the extent of

compliance with these laws and regulations as part of our

procedures on the related financial statement items.

Secondly, the Group is subject to many other laws and

regulations where the consequences of non-compliance could

have a material effect on amounts or disclosures in the

financial statements, for instance through the imposition of

fines or litigation or the need to include significant provisions.

We identified the following areas as those most likely to have

such an effect: GDPR, Health and Safety legislation,

employment and social security legislation and the higher

education regulatory requirements of the Higher Education

Funding Council for Wales (HEFCW), recognising the regulated

nature of the University’s activities. Auditing standards limit the

required audit procedures to identify non-compliance with

these laws and regulations to enquiry of the directors and

other management and inspection of regulatory and legal

correspondence, if any. Therefore, if a breach of operational

regulations is not disclosed to us or evident from relevant

correspondence, an audit will not detect that breach

Context of the ability of the audit to detect fraud or breaches of

law or regulation

Owing to the inherent limitations of an audit, there is an

unavoidable risk that we may not have detected some

material misstatements in the financial statements, even

though we have properly planned and performed our audit in

accordance with auditing standards. For example, the further

removed non-compliance with laws and regulations is from the

events and transactions reflected in the financial statements,

the less likely the inherently limited procedures required by

auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of

non-detection of fraud, as these may involve collusion,

forgery, intentional omissions, misrepresentations, or the

override of internal controls. Our audit procedures are

designed to detect material misstatement. We are not

responsible for preventing non-compliance or fraud and

cannot be expected to detect non-compliance with all laws

and regulations.

47

6.

We have nothing to report on the other information in the

Annual Report

The Council (the members of which are the Trustees of the

University for the purposes of charity law) is responsible for the

other information, which comprises the information included in

the annual report other than the financial statements and our

auditor’s report thereon. Our opinion on the financial

statements does not cover the other information and,

accordingly, we do not express an audit opinion or, except as

explicitly stated below, any form of assurance conclusion

thereon.

Our responsibility is to read the other information and, in

doing so, consider whether, based on our financial

statements audit work, the information therein is materially

misstated or inconsistent with the financial statements or our

audit knowledge. We are required to report to you if, based

solely on that work:

•

we have identified material misstatements in the other

information; or

•

in our opinion the information given in the Financial

Review, Statement of Corporate Governance, and

Statement of Internal Control (which together constitutes

the Trustees’ Annual Report for the financial year) is

inconsistent in any material respect with the financial

statements.

We have nothing to report in these respects.

7.

We have nothing to report on the other matters on

which we are required to report by exception

Under the Charities Act 2011 we are required to report to

you if, in our opinion:

•

the University has not kept sufficient accounting records; or

•

the financial statements are not in agreement with the

accounting records; or

•

we have not received all the information and

explanations we require for our audit.

•

We have nothing to report in these respects.

8.

Respective responsibilities

Council’s responsibilities

As explained more fully in its statement set out on page 42,

Council is responsible for: the preparation of financial

statements that give a true and fair view; such internal control

as it determines is necessary to enable the preparation of

financial statements that are free from material misstatement,

whether due to fraud or error; assessing the Group and

University’s ability to continue as a going concern, disclosing,

as applicable, matters related to going concern; and using the

going concern basis of accounting unless it either intends to

liquidate the Group or the University or to cease operations, or

has no realistic alternative but to do so.

Auditor’s responsibilities

Our objectives are to obtain reasonable assurance about

whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to

issue our opinion in an auditor’s report. Reasonable assurance

is a high level of assurance, but does not guarantee that an

audit conducted in accordance with ISAs (UK) will always

detect a material misstatement when it

exists. Misstatements can arise from fraud or error and are

considered material if, individually or in aggregate, they could

reasonably be expected to influence the economic decisions

of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the

FRC’s website at www.frc.org.uk/auditorsresponsibilities.

REPORT OF OTHER LEGAL AND REGULATORY

REQUIREMENTS

9.

Reporting on other legal and regulatory requirements

We are required to report on the following matters prescribed in

the Higher Education Funding Council for Wales (‘HEFCW’) Audit

Code of Practice issued under the Further and Higher Education

Act 1992 and in the Financial Management Code issued under the

Higher Education (Wales) Act 2015 and the Accounts Direction to

Higher Education Institutions for 2021/22 issued by the HEFCW

(“the Accounts Direction”).

In our opinion, in all material respects:

•

funds from whatever source administered by the Group or

the University for specific purposes have been properly

applied to those purposes and managed in accordance

with relevant legislation;

•

income, where appropriate, has been applied in

accordance with paragraph 145 of the HEFCW’s

Financial Management Code (FMC);

•

Funding Council grants have been applied in accordance

with terms and conditions attached to them and used for

the purposes for which they were received, including the

Terms and Conditions of Funding;

•

the requirements of HEFCW’s Accounts Direction have

been met.

10.

The purpose of our audit work and to whom we owe our

responsibilities

This report is made solely to the Council in accordance with

Section 4 of the Charters and Statutes of the University and

with section 144 of the Charities Act 2011 (or its predecessors)

and regulations made under section 154 of that Act.

Our audit work has been undertaken so that we might state to

Council those matters we are required to state to them in an

auditor’s report and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to

anyone other than the University and the Council for our audit

work, for this report, or for the opinions we have formed.

Jonathan Brown

for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants. KPMG LLP is eligible to act as an

auditor in terms of section 1212 of the Companies Act 2006

3 Assembly Square

Britannia Quay

Cardiff

CF10 4AX

19 December 2022

48

Consolidated and Institution Statements of Comprehensive Income

and Expenditure

Year ended 31 July 2022

49

Consolidated

Institution

All items of income and expenditure relate to continuing activities.

The Notes on page 53 to 87 form part of these financial statements.

Note

2022

£’000

2021

£’000

2022

£’000

2021

£’000

Income

Restated

(

See Note 29

)

Restated

(

See Note 29

)

Tuition fees and education contracts

2

323,510

314,500

323,510

314,500

Funding body grants

3

98,893

109,464

98,893

109,464

Research grants and contracts

4

125,427

112,648

125,427

112,648

Other income

5

79,369

68,455

76,833

67,246

Investment income

6

5,729

4,376

5,725

4,376

Donations and endowments

7

1,239

2,738

1,239

2,738

Total Income

634,167

612,181

631,627

610,972

Expenditure

Restated

(

See Note 29

)

Restated

(

See Note 29

)

Staff costs

8

339,213

329,331

338,760

329,331

Staff costs – Voluntary Severance Scheme

10

9

482

9

482

Staff costs – increase/(decrease) in USS

pension scheme provision

10,21

118,781

2,394

118,781

2,394

Other operating expenses

10

212,897

195,439

211,012

194,286

Depreciation

11

40,041

40,644

40,041

40,644

Interest and other finance costs

9

14,372

12,498

14,372

12,491

Total Expenditure

10

725,313

580,788

722,975

579,628

Operating (deficit) / surplus before other gains and

losses

(91,146)

31,393

(91,348)

31,344

Impairment of tangible fixed assets

11

-

(2,061)

-

(2,061)

Impairment of non-current assets

12,14

(6)

(2,000)

-

(5,160)

Gain on sale/disposal of non-current investments

12

2,181

726

2,181

726

(Loss)/Gain on valuation of investments

15,23

(11,574)

34,463

(11,574)

34,463

Share of surplus/ (deficit) in joint venture

12,22

641

(3,769)

-

-

(Deficit)/Surplus for the year

(99,904)

58,752

(100,741)

59,312

Other Comprehensive Income

Impairment on the revaluation of assets

11

-

(2,889)

-

(2,889)

Actuarial gain/(loss) in respect of pension schemes

25

72,095

3,000

72,095

3,000

Total comprehensive (deficit) / surplus for the year

(27,809)

58,863

(28,646)

59,423

Represented by:

Endowment comprehensive income for the year

88

6,544

88

6,544

Restricted comprehensive expenditure for the year

-

(188)

-

(188)

Unrestricted comprehensive (expenditure) /

income for the year

(27,897)

52,507

(28,734)

53,067

(27,809)

58,863

(28,646)

59,423

Consolidated and Institution Statements of Changes in Reserves

Year ended 31 July 2022

50

Consolidated

Income and expenditure account

Revaluation reserve

Total

Endowment

Restricted

Unrestricted

£'000

£'000

£'000

£'000

£'000

Balance at 1 August 2020

38,938

348

252,423

325,896

617,605

Surplus / (deficit) from the

income and expenditure

statement

6,544

(188)

52,396

-

58,752

Other comprehensive

expenditure

-

-

111

-

111

Total comprehensive

surplus/(deficit)for the year

6,544

(188)

52,507

-

58,863

Transfers between

revaluation and income and

expenditure reserve

-

-

9,167

(9,167)

-

Balance at 31 July 2021

45,482

160

314,097

316,729

676,468

Surplus / (deficit) from the

income and expenditure

statement

88

(99,992)

Other comprehensive income

-

72,095

(99,904)

72,095

Total comprehensive

surplus/(deficit) for the year

88

(27,897)

(27,809)

Transfers between reserves

-

6,118

(6,118)

Balance at 31 July 2022

45,570

160

292,318

310,611

648,659

Institution

Income and expenditure account

Total

Endowment

Restricted

Unrestricted

£'000

£'000

£'000

£'000

£'000

Balance at 1 August 2020

38,938

348

254,130

325,896

619,312

Surplus / (deficit) from the

income and expenditure

statement

6,544

(188)

52,956

-

59,312

Other comprehensive

expenditure

-

-

111

-

111

Total comprehensive surplus/

(deficit) for the year

6,544

(188)

53,067

-

59,423

Transfers between

revaluation and income and

expenditure reserve

-

-

9,167

(9,167)

-

Balance at 31 July 2021

45,482

160

316,364

316,729

678,735

Surplus / (deficit) from the

income and expenditure

statement

88

(100,829)

(100,741)

Other comprehensive income

72,095

72,095

Total comprehensive surplus

/ (deficit) for the year

88

-

(28,734)

(28,646)

Transfers between reserves

6,118

(6,118)

-

Balance at 31 July 2022

47,570

160

293,748

310,611

650,089

The Notes on page 53 to 87 form part of these financial statements.

Consolidated and Institution Statements of Financial Position

Year ended 31 July 2022

51

Consolidated

Institution

Note

2022

£’000

2021

£’000

2022

£’000

2021

£’000

Non-current assets

Tangible fixed assets

11

949,055

934,275

949,055

934,275

Investments

12

9,249

7,598

7,630

6,146

958,304

941,873

956,685

940,421

Current assets

Stocks

13

296

296

296

296

Trade and other receivables

14

60,245

46,794

61,121

47,649

Investments

15

365,051

325,592

365,051

325,592

Cash and cash equivalents

16

96,365

148,587

89,438

147,637

521,957

521,269

515,906

521,174

Creditors: amounts falling due within one year

17

(168,757)

(166,708)

(162,620)

(166,325)

Net current assets

353,200

354,561

353,286

354,849

Total assets less current liabilities

1,311,504

1,296,434

1,309,971

1,295,270

Creditors: amounts falling due after more than

one year

18

(424,324)

(427,721)

(424,324)

(427,721)

Pension provisions

21

(233,452)

(188,814)

(233,452)

(188,814)

Other provisions

22

(5,069)

(3,431)

(2,106)

-

Total net assets

648,659

676,468

650,089

678,735

Restricted Reserves

Income and expenditure - endowment reserve

23

45,570

45,482

45,570

45,482

Income and expenditure - restricted reserve

160

160

160

160

Unrestricted Reserves

Income and expenditure - unrestricted

292,318

314,097

293,748

316,364

Revaluation reserve

310,611

316,729

310,611

316,729

Total Reserves

648,659

676,468

650,089

678,735

The Notes on page 53 to 87 form part of these financial statements.

The financial statements on pages 49 to 90 were approved by Council on 24 November 2022 and were signed on

its behalf on 19 December 2022 by:

Patrick Younge

Professor Colin Riordan

Darren Xiberras

Chair of Council

Vice-Chancellor

Chief Financial Officer

Year ended 31 July 2022

52

Consolidated

Institution

Note

2022

2021

2022

2021

£'000

£'000

£'000

£'000

Cash flow from operating activities

Restated

(Deficit)/Surplus for the year

(99,904)

Restated

(100,741)

59,311

Adjustment for non-cash items

Depreciation

11

40,041

40,644

40,041

40,644

Impairment of fixed assets

11

-

2,061

-

2,061

Impairment of non-current investments

12

6

-

-

3,160

Share of operating (surplus)/deficit in JV’s

12,22

(641)

3,769

-

-

Correction to non-current investment costs

12

-

401

-

401

Non-cash pension charges

21

116,733

4,505

116,733

4,505

Increase in stock

13

-

(1)

-

(1)

(Increase)/decrease in debtors

14

(13,451)

5,208

(13,472)

5,139

Increase in creditors

17,18

6,662

29,345

908

29,468

Increase in other provisions

2,106

-

2,106

-

Adjustment for investing or financing activities

Capital grant income

3,5

(16,577)

(31,166)

(16,577)

(31,166)

Investment income

6

(5,729)

(4,376)

(5,725)

(4,376)

Interest payable

9

11,980

10,448

11,980

10,441

New endowments

7

(267)

(288)

(267)

(288)

Gain on disposal of non-current investments

12

(2,181)

(726)

(2,181)

(726)

Loss/(gain) on current investments

12,15

11,574

(34,463)

11,574

(34,463)

Net cash inflow from operating activities

50,352

44,379

84,109

Cash flows from investing activities

Capital grant receipts

11,562

26,346

11,562

26,346

Investment income

6

5,729

4,376

5,729

4,376

(Increase)/ decrease in deposits

15

(51,033)

(75,205)

(51,033)

(75,205)

Payments made to acquire fixed assets

11

(54,821)

(133,071)

(54,821)

(133,071)

Non-current investment acquisitions

12

(2,312)

(571)

(2,312)

(571)

Non-current investment disposal proceeds

12

3,009

2,224

3,009

2,224

Net cash (outflow) from investing activities

(87,866)

(175,901)

(87,870)

(175,901)

Cash flows from financing activities

Interest paid

9

(12,433)

(10,854)

(12,433)

(10,847)

Endowment cash received

7

267

288

267

288

Repayments of amounts borrowed

17,18

(2,542)

(2,251)

(2,542)

(2,251)

Bond issue

18

-

128,217

-

128,217

Net cash inflow/ (outflow) from financing activities

(14,708)

115,400

(14,708)

115,407

Increase in cash and cash equivalents in the year

(52,222)

(58,199)

23,615

Cash and cash equivalents at beginning of the year

148,587

124,976

147,637

124,022

Cash and cash equivalents at end of the year

16

96,365

148,587

89,438

147,637

The Notes on page 53 to 87 form part of these financial statements

Consolidated and Institution

of Cash-flow

Notes to the Financial Statements

Year ended 31 July 2022

53

1. Statement of Principal Accounting Policies

Basis of preparation

This consolidated financial information has been

prepared in accordance with the Statement of

Recommended

Practice

(SORP):

Accounting

for

Further and Higher Education 2019, the Financial

Reporting Standard (FRS 102) and the Charities Act

2011. The Institution is a public benefit entity and

therefore has applied the relevant public benefit

requirement of FRS 102. The financial information is

prepared in accordance with the historical cost

convention (modified by the revaluation of land and

buildings and the measurement of certain financial

instruments at fair value).

The Group and University’s activities, together with the

factors likely to affect its future development,

performance, and position, are set out in the Financial

Review which forms part of the Board of Council’s

Report. The Council’s Report also describes the

financial position of the Institution, its cash flows,

liquidity position and borrowing facilities.

The financial statements have been prepared on a

going concern basis which the Council consider to be

appropriate for the following reasons.

-

The Council has reviewed cash flow forecasts for

a period of 12 months from the date of approval

of these financial statements.

-

After reviewing these forecasts, the Council is of

the opinion that, taking account of severe but

plausible downsides, the Group and parent

Institution will have sufficient funds to meet their

liabilities as they fall due over the period of 12

months from the date of approval of the financial

statements (the going concern assessment

period).

Consequently, Council is confident that the Group and

parent Institution will have sufficient funds to continue

to meet their liabilities as they fall due for at least 12

months from the date of approval of the financial

statements and therefore has prepared the financial

statements on a going concern basis.

Basis of consolidation

The consolidated financial information consolidates

the financial statements of the Institution and its

subsidiary undertakings University College Cardiff

Consultants

Limited

and

International

Learning

Exchange Programme Limited for the financial year to

31 July. It does not include those of the University

Students’ Union, or the Cardiff Partnership Fund

Limited as the Council does not exercise control over

their financial and operating activities.

Uniform accounting policies are adopted throughout

the Group. Joint ventures are accounted for using the

equity method.

Recognition of income

Fee income is stated gross of any expenditure which

is not a discount or fee waiver and credited to the

Consolidated Statement of Comprehensive Income.

Where the amount of the tuition fee is reduced, by a

discount for prompt payment, income receivable is

shown net of the discount. Bursaries and scholarships

are accounted for gross as expenditure and not

deducted from income.

Income from the sale of goods or services is credited

to the Consolidated Statement of Comprehensive

Income when the goods or services are supplied to the

external customer, or the terms of the contract have

been satisfied.

Investment income is credited to the Consolidated

Statement of Comprehensive Income on a receivable

basis.

Funds the Institution receives and disburses as paying

agent on behalf of a funding body are excluded from

the income and expenditure of the Institution where

the Institution is exposed to minimal risk or enjoys

minimal economic benefit related to the transaction.

Grant funding

Grant funding including funding council block grants,

research and furlough grants from government

sources and grants (including research grants) from

non-government sources are recognised as income

when the performance related conditions have been

met and the Institution has become entitled to the

income. Income received in advance of performance

related conditions being met is recognised as deferred

income within creditors on the balance sheet and

released to income as the conditions are met.

Donations and endowments

Non-exchange

transactions

without

performance

related conditions are donations and endowments.

Donations and endowments with donor-imposed

restrictions are recognised in income when the

Institution is entitled to the funds and is retained

within the separate restricted reserve until such time

that it is utilised in line with such restrictions.

Donations with no restrictions are recognised in

income when the Institution is entitled to the funds.

Investment income and movements in fair value of

endowments are recorded in income in the year in

which they arise and as either restricted or

unrestricted income according to the terms of the

endowment.

Notes to the Financial Statements

Year ended 31 July 2022

54

1.

Statement

of

Principal

Accounting

Policies (continued)

restrictions applied to the individual endowment

funds.

There are four main types of donations and

endowments identified within reserves:

1. Restricted donations - the donor has specified that

the donation must be used for a particular objective.

2. Unrestricted permanent endowments - the donor

has specified that the fund is to be permanently

invested to generate an income stream for the general

benefit of the Institution.

3. Restricted expendable endowments - the donor has

specified a particular objective other than the

purchase or construction of tangible fixed assets, and

the Institution has the power to use the capital.

4. Restricted permanent endowments - the donor has

specified that the fund is to be permanently invested

to generate an income stream to be applied to a

particular objective.

Capital grants

Capital grants are recognised in income when the

Institution is entitled to the funds subject to any

performance related conditions being met.

Provision for doubtful debts

Provision is normally made for individual debts where

recovery is thought to be in doubt based the ageing of

the debt past its due date, other known circumstances

relating to the individual debtor, such as referred to

debt collection agency, and post year end recovery of

debts.

Any un-provided debts are deemed as

recoverable.

Pension schemes

The three principal defined benefit pension schemes

for

the

Institution’s

staff

are

the

Universities

Superannuation Scheme (USS), the Cardiff Institution

Pension Fund (CUPF), and the Local Government

Pension Scheme (LGPS). The schemes are funded

defined benefit schemes. The funds are actuarially

valued every three years by a professionally qualified

actuary using either the aggregate method or the

attained age method with the rates of contribution

payable being determined by the scheme’s trustees

on the advice of the actuary.

Universities Superannuation Scheme

The

institution

participates

in

Universities

Superannuation Scheme. The assets of the scheme

are held in a separate trustee-administered fund.

Because of the mutual nature of the scheme, the

assets are not attributed to individual institutions and

a scheme-wide contribution rate is set.

The institution

is therefore exposed to actuarial risks associated with

other institutions’ employees and is unable to identify

its share of the underlying assets and liabilities of the

scheme on a consistent and reasonable basis. As

required by Section 28 of FRS 102 “Employee

benefits”, the institution therefore accounts for the

scheme as if it were a defined contribution scheme.

As a result, the amount charged to the profit and loss

account represents the contributions payable to the

scheme. Since the institution has entered into an

agreement (the Recovery Plan) that determines how

each employer within the scheme will fund the overall

deficit, the institution recognises a liability for the

contributions payable that arise from the agreement

(to the extent that they relate to the deficit) with

related expenses being recognised through the profit

and loss account.

Defined contribution plan:

A defined contribution plan is a post-employment

benefit plan under which the Institution pays fixed

contributions into a separate entity and will have no

legal or constructive obligation to pay further

amounts. Obligations for contributions to defined

contribution pension plans are recognised as an

expense

in

the

Consolidated

Statement

of

Comprehensive Income in the periods during which

services are rendered by employees.

Defined benefit plan:

Defined benefit plans are post-employment benefit

plans other than defined contribution plans. Under

defined benefit plans, the Institution’s obligation is to

provide the agreed benefits to current and former

employees, and actuarial risk (that benefits will cost

more or less than expected) and investment risk (that

returns on assets set aside to fund the benefits will

differ from expectations) are borne, in substance, by

the Institution. The Institution should recognise a

liability for its obligations under defined benefit plans

net of plan assets. This net defined benefit liability is

measured as the estimated amount of benefit that

employees have earned in return for their service in

the current and prior periods, discounted to determine

its present value, less the fair value (at bid price) of

plan assets. The calculation is performed by a

qualified actuary using the projected unit credit

method. Where the calculation results in a net asset,

recognition of the asset is limited to the extent to

which the Institution is able to recover the surplus

either through reduced contributions in the future or

through refunds from the plan.

In addition, the National Health Service (NHS)

Pension Scheme is in operation for certain staff. The

NHS scheme is an unfunded defined benefit scheme,

with pension benefits being paid out of contributions

received in the year and contribution

Notes to the Financial Statements

Year ended 31 July 2022

55

1.

Statement

of

Principal

Accounting

Policies (continued)

rates determined by HM Treasury.

This is accounted

for as a defined contribution scheme.

To comply with

The Pensions Act 2008, the Institution also uses the

NEST defined contributions pension scheme for

eligible non-contractual workers.

Employment benefits

Short term employment benefits such as salaries and

compensated absences are recognised as an expense

in the year in which the employees render service to

the Institution. Any unused benefits are accrued and

measured as the additional amount the Institution

expects to pay as a result of the unused entitlement.

Foreign currencies

Transactions denominated in foreign currencies are

recorded at the rate of exchange ruling at the dates of

the transactions.

Monetary assets and liabilities

denominated in foreign currencies are translated into

GB Sterling, the functional currency of the Institution,

at year-end rates and the resulting exchange

differences are included in the determination of the

deficit or surplus for the year.

Operating leases

Costs in respect of operating leases are charged on a

straight-line basis over the lease term. Any lease

premiums or incentives are spread over the minimum

lease term.

Fixed assets

Fixed assets are stated at cost/deemed cost less

accumulated

depreciation

and

accumulated

impairment losses. Freehold and Long Leasehold

property assets in existence on the transition to the

FRS102 (1

st

August 2014) were measured on the

basis of deemed cost, being market fair value or

deemed cost of replacement.

The difference between the revalued amount and

historical cost is credited to a revaluation reserve.

An amount equal to the depreciation in excess of that

on the historical cost basis is transferred from the

revaluation reserve to retained earnings.

Land and buildings

Costs incurred in relation to land and buildings after

initial purchase or construction are capitalised to the

extent that they increase the expected future benefits

to the Institution.

Land is not depreciated as it is considered to have an

indefinite

useful

life.

Freehold

buildings

are

depreciated on a straight-line basis over their

expected useful lives, in years, as follows:

Academic buildings and listed buildings

50

Pre 1990 residence sites

25

Post 1990 and Talybont North residences

50

Residential Houses

50

Semi-permanent buildings

25

New UHW site buildings

50

Old UHW site buildings

25

Refurbishments

15

Leasehold buildings are depreciated over the shorter

of the lease term or the expected useful lives shown

above.

No depreciation is charged on assets in the course of

construction.

Plant & Equipment

Plant and equipment costing less than £10,000 per

individual item or group of related items is written off

in the year of acquisition unless purchased as part of

a

new

build

or

major

building

infrastructure

refurbishment.

All other equipment is capitalised, with the exception

of equipment funded from Research Grants which

costs under £50,000 which is also written off in the

year of acquisition.

Capitalised plant and equipment are stated at cost

and depreciated over their expected useful life of

between four and ten years, for equipment, as

appropriate, and fifteen years for plant / equipment

associated with building infrastructure (e.g. boilers,

air-conditioning, or alarm systems).

Assets under construction are not depreciated until

brought into use.

Fully depreciated equipment is written off 10 years

after acquisition.

Investments

Non-current asset investments are held on the

Balance Sheet at cost less impairment.

Joint ventures are carried at cost less impairment in

the Institution’s financial statements.

Current asset investments are held at fair value with

movements recognised in the total comprehensive

income for the year.

Stocks

Stocks

held

are

building

materials,

medical/bioscience

consumables,

and

trading

consumables of the Estates Works Unit, College of

Biomedical

and

Life

Sciences

and

Catering

respectively.

They are valued at the lower of cost or

net realisable value.

Notes to the Financial Statements

Year ended 31 July 2022

56

1.

Statement

of

Principal

Accounting

Policies (continued)

Cash and cash equivalents

Cash includes cash in hand, deposits repayable on

demand and overdrafts. Deposits are repayable on

demand if they are in practice available within 24

hours without penalty.

Cash equivalents are short term, highly liquid

investments that are readily convertible to known

amounts of cash with insignificant risk of change in

value.

Maintenance of premises

The Institution has a rolling maintenance plan which

is reviewed on an annual basis.

The cost of routine

corrective maintenance is charged to the statement of

comprehensive income.

Taxation status

The Institution is a registered charity within the

meaning of Chapter 1 Section 3 of the Charities Act

2011 and as such is a charity within the meaning of

Section 6 to the Finance Act 2010.

Accordingly, the

Institution is potentially exempt from taxation in

respect of income or capital gains received within

categories covered by Section 478-488 of the

Corporation Tax Act 2010 or Section 256 of the

Taxation of Chargeable Gains Act 1992 to the extent

that such income or gains are applied to exclusively

charitable purposes for public benefit.

All subsidiary companies are liable to Corporation Tax

and Value Added Tax (VAT).

The Institution’s principal

activities are exempt from VAT, but certain ancillary

supplies and services are liable to VAT at various

rates.

Expenditure

includes

irrecoverable

VAT

charged by suppliers to the Institution. The Institution

does not have to pay Stamp Duty Land Tax when

buying and leasing a property.

Provisions

Provisions are recognised when the Institution has a

present legal or constructive obligation as a result of

a past event, it is probable that a transfer of economic

benefit will be required to settle the obligation and a

reliable estimate can be made of the amount of the

obligation.

Financial instruments

The Institution has chosen to adopt Sections 11 and

12 of FRS102 in respect of financial instruments for

its consolidated and Institution financial statements.

(i) Financial assets

Basic financial assets, including trade and other

receivables, cash and bank balances and investments

in commercial paper, are initially recognised at

transaction price, unless the arrangement constitutes

a financing transaction, where the transaction is

measured at present value of the future receipts

discounted at a market rate of interest.

Such assets are subsequently carried at amortised

cost using the effective interest method.

At the end of each reporting period financial assets

measured at amortised cost are assessed for

objective evidence of impairment. If an asset is

impaired the impairment loss is the difference

between the carrying amount and the present value of

the estimated cash flows discounted at the asset’s

original effective interest rate.

The impairment loss is

recognised in the total comprehensive income for the

year.

If there is a decrease in the impairment loss arising

from an event occurring after the impairment was

recognised, the impairment is reversed. The reversal

is such that the current carrying amount does not

exceed what the carrying amount would have been

had the impairment not previously been recognised.

The impairment reversal is recognised in the total

comprehensive income for the year.

Other financial assets, including investments in equity

instruments which are not subsidiaries, associates, or

joint ventures, are initially measured at fair value

which is normally the transaction price.

Such assets are subsequently carried at fair value and

the changes in fair value are recognised in the surplus

or deficit, except those investments in equity

instruments that are not publicly traded and whose

fair values cannot be measured reliably are measured

at cost less impairment.

Financial assets are derecognised when (a) the

contractual rights to the cash flows from the asset

expire or are settled, or (b) substantially all the risks

and rewards of the ownership of the assets are

transferred to another party or (c) despite having

retained some significant risks and rewards of

ownership, control of the asset has been transferred

to another party who has the practical ability to

unilaterally sell the asset to an unrelated third party

without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other

payables, bank loans, loans from fellow Group

companies and preference shares that are classified

as debt, are initially recognised at transaction price,

unless the arrangement constitutes a financing

transaction, where the debt instrument is measured

at the present value of the future receipts discounted

at a market rate of interest.

Debt

instruments

are

subsequently

carried

at

amortised cost, using the effective interest rate

method.

Notes to the Financial Statements

Year ended 31 July 2022

57

1.

Statement

of

Principal

Accounting

Policies (continued)

Fees paid on the establishment of loan facilities are

recognised as transaction costs of the loan to the

extent that it is probable that some or all of the facility

will be drawn down.

In this case, the fee is deferred

until the draw-down occurs. To the extent there is no

evidence that it is probable that some or all of the

facility will be drawn down, the fee is capitalised as a

pre-payment for liquidity services and amortised over

the period of the facility to which it relates.

Trade payables are obligations to pay for goods or

services that have been acquired in the ordinary

course of business from suppliers.

Accounts payable

are classified as current liabilities if payment is due

within one year or less.

If not, they are presented as

non-current liabilities.

Trade payables are recognised

initially

at

transaction

price

and

subsequently

measured at amortised cost using the effective

interest method.

Financial liabilities are derecognised when the liability

is extinguished, that is when the contractual obligation

is discharged, cancelled, or expires.

Reserves

Reserves are classified as restricted or unrestricted.

Restricted endowment reserves include balances

which, through endowment to the Institution, are held

as a permanently restricted fund which the Institution

must hold in perpetuity.

Other restricted reserves include balances where the

donor has designated a specific purpose and

therefore the Institution is restricted in the use of

these funds.

The bond repayment fund, a designated reserve, was

created in 2019/20 for the purpose of being able to

give a reasonable likelihood of being able to meet the

bond repayment of £400m, due on 7 December 2055

(note 24).

Significant estimates and judgements

Significant estimates and judgements used in the

preparation of this financial information were as

follows:

(i) Recoverability of debtors

The normal (post-COVID-19) accounting policy for the

assessment of recoverability of debtors and the

subsequent doubtful debt impairment provisioning

regarding the collection of students fees and

Commercial and Research debt has been applied.

As a result of measures put in place during the COVID-

19

pandemic,

our

dunning

procedures

have

continued, and students have been required to clear

their current fees before progressing to another

academic year. For students who have completed

their course but have fees outstanding their full

certification is withheld until their fee debt is cleared,

in line with Institution Tuition fee policy.

Overall, post- COVID-19, the Institution’s ability to

collect debt from our students, UK and international

Commercial and Research clients has improved which

has lessened the risk in recovering the debt, with the

exception of specific debts. We continue to monitor

closely overseas debt and act as appropriate.

Estimate

Tuition fee debt

The year-end tuition fees doubtful debt impairment

provision is assessed on the basis of all overdue debt

by fee debtor category regardless of aged profile, with

particular categories attributing more risk than others.

The resulting aggregated debt impairment provision is

reduced by subsequent fee settlements received after

31 July 2022 from debtors within these same

categories. All other tuition fee debt is deemed

recoverable.

Tuition fee debt at 31 July 2022 was £5.1m (2021:

£6.3m) (see Note 14), of which £4.8n (2021: £6.2m)

was overdue. After applying our debt impairment

policy, £4.7 (2021: £5.7m) was deemed at risk,

subject to doubtful debt impairment provision of

£4.3m (2021: £4.7m) after assessment of receipts

received after 31

July 2022.

Commercial and Research Debt

General debt impairment assessment policies have

been applied, with the exception of overseas

embassies whereby debt over 91 days overdue is

subject to impairment provision (normally provided on

181 days overdue).

Overall, Commercial and Research debt at 31 July

2022 was £16.9m (2021: £11.5m) (see Note 14).

After applying the modified doubtful debt impairment

policy £1.2m is assessed at risk (2021: £1.0m) and

subject to doubtful debt impairment provision.

(ii)

Leasehold Property Dilapidations

The Institution has recognised its future estimated

obligation to return short term leasehold properties to

their original state on the termination of the lease

arrangement, based on the current market works cost

estimate provided by a professional property surveyor

on assessing the current status of each relevant

building.

As at the 31 July 2022, it is assumed that the

Institution will exit each lease on the relevant date as

there are no plans or indications to counter this view.

The resulting estimated provision(s) will be subject to

future annual review for both relevance, i.e. future

Notes to the Financial Statements

Year ended 31 July 2022

58

1.

Statement

of

Principal

Accounting

Policies (continued)

plans to exit or renew, and to the application of

inflation, based on relevant industry cost price

indexation data.

Future cost inflation fluctuations will be recognised in

the

Statement

of

Comprehensive

Income

and

Expenditure as a repairs and maintenance cost.

(iii) Retirement benefit obligations

Estimate – CUPF and LGPS

The Institution operates its own scheme, Cardiff

University Pension Fund (CUPF) and participates in a

Local Government Pension Scheme (LGPS); both are

defined benefit schemes. Actuarial valuations of the

schemes are carried out as determined by the

trustees at intervals of not more than three years.

Pension costs under FRS 102 are assessed in

accordance with the advice of independent actuaries

based

upon

latest

actuarial

valuations

and

assumptions determined by the actuaries.

The

assumptions

are

based

upon

information

supplied

to

the

actuaries

by

the

Institution,

supplemented by discussions between the actuary

and management, where relevant. The assumptions

are documented in Note 25.

As at 31 July 2022, the LGPS fund, under FRS102

accounting treatment, resulted in a pension asset.

The asset has not been recognised as such on the

Statement of Financial Position, as there is no

automated entitlement to a refund from the scheme.

Recent changes in global and UK economic pressures

and tightening of monetary policy have had a

significant impact on asset markets and corporate

bonds

yields,

which

are

key

to

the

FRS102

assessment of the net pension asset or liability. In

particular, AA corporate bond yields, used to set the

FRS102 discount rate, have increased significantly

since 31 July 2022, with corresponding falls in asset

values. The markets have been exceptionally volatile

and therefore while both gross DBOs and assets will

have fallen, it is difficult to estimate the impact of

these changes on the net balance sheet position.

Estimate - USS

As the Institution is contractually bound to make

deficit recovery payments to USS, this is recognised as

a liability in the balance sheet. The provision is

currently based on USS deficit recovery plan agreed

after the 2020 actuarial valuation, which defines the

deficit payment required as a percentage of future

salaries until 2038. These contributions are re-

assessed within each triennial valuation of the

scheme. The provision is based on management’s

estimate of future salaries inflations, changes in staff

numbers and the prevailing rate of discount. Further

details are set out in Note 25.

Judgement - USS

FRS 102 makes the distinction between a group plan

and a multi-employer scheme. A group plan consists

of a collection of entities under common control

typically with a sponsoring employer. A multi-employer

scheme is a scheme for entities not under common

control and represents (typically) an industry-wide

scheme

such

as

Universities

Superannuation

Scheme.

The accounting for a multi-employer scheme where

the employer has entered into an agreement with the

scheme that determines how the employer will fund a

deficit result in the recognition of a liability for the

contributions payable that arise from the agreement

(to the extent that they relate to the deficit) with the

resulting expense charged through the profit or loss

account in accordance with section 28 of FRS 102.

Council is satisfied that Universities Superannuation

Scheme meets the definition of a multi-employer

scheme and has therefore recognised the discounted

fair value of the contractual contributions under the

recovery plan in existence at the date of approving

these financial statements.

Notes to the Financial Statements

Year ended 31 July 2022

59

2

.

Tuition Fees and Education Contracts

Consolidated and Institution

2022

£’000

2021

£’000

Restated

UK and European Union Undergraduate

156,378

154,288

UK and European Union Postgraduate

13,246

17,234

Overseas (including part-time)

113,334

102.096

Part Time (UK and European Union)

6,389

6,670

289,347

280,288

Education contracts

16,490

16,068

Research training support grants

10,053

10,491

Non-credit bearing fees

7,620

7,653

323,510

314,500

2021 Restated: Refer to Note 29.

3

.

Funding Body Grants

Consolidated and Institution

2022

£’000

2021

£’000

Restated

Recurrent grant

75,263

62,925

Specific grants

9,053

19,912

Capital grants - buildings

5,968

12,907

Capital grants - equipment

8,609

13,720

98,893

109,464

2021 Restated:

amounts have been reclassified between the four line items to better reflect the nature of

the grant.

There is no overall impact on the total funding body grants for the year ended 31 July 2021 from

this.

4. Research Grants and Contracts

Consolidated and Institution

2022

£’000

2021

£’000

Restated

Research Councils

41,833

37,888

UK-based charities

22,857

18,004

UK Government bodies

37,553

33,384

UK Industry

6,563

6,433

European Commission

8,828

9,189

Overseas

5,708

6,319

Other grants and contracts

2,085

1,431

125,427

112,648

Notes to the Financial Statements

Year ended 31 July 2022

60

5. Other Income

Consolidated

Institution

2022

£’000

2021

£’000

2022

£’000

2021

£’000

Restated

Restated

Other services rendered:

UK Central Government

22,662

18,336

22,662

18,336

UK Health Authorities

6,919

7,258

6,919

7,258

UK Industry

964

1,092

964

1,092

European Union

1,468

1,049

1,468

1,049

Overseas

78

167

78

167

UK Universities

533

396

533

396

Other Sources

7,608

5,570

7,608

5,570

Total other services rendered

40,232

33,868

40,232

33,868

Residences, catering and conferences

27,788

22,774

27,788

22,774

Exempt VAT recoverable

632

2,008

632

2,008

Other capital grants

2,000

4,539

2,000

4,539

Government Job Retention Scheme

-

400

-

400

Other income

8,717

4,866

6,181

3,657

79,369

68,455

76,833

67,246

6. Investment Income

Consolidated

Institution

2022

£’000

2021

£’000

2022

£’000

2021

£’000

Income from investments

4,465

3,151

4,462

3,151

Income from endowment investments (Note 23)

1,264

1,225

1,264

1,225

5,729

4,376

5,725

4,376

7. Donations and Endowments

Consolidated

Institution

2022

£’000

2021

£’000

2022

£’000

2021

£’000

New endowments (Note 23)

267

288

267

288

Donations with restriction

-

210

-

210

Unrestricted donations

972

2,240

972

2,240

1,239

2,738

1,239

2,738

Notes to the Financial Statements

Year ended 31 July 2022

61

8

.

Staff Costs

Consolidated

Institution

2022

£’000

2021

£’000

2022

£’000

2021

£’000

Staff costs

:

Wages and salaries

258,247

251,928

257,897

251,928

Social security costs

27,370

25,356

27,336

25,356

Other pension costs

53,596

52,529

53,527

52,529

339,213

329,813

338,760

329,813

The above figures exclude payments made to staff on behalf of the National Health Service.

The institution’s wholly owned subsidiary, International Learning Exchange Limited (Taith) is included in the

Consolidation position of above disclosures.

Key management personnel compensation

The Institution considers that key management personnel are the 12 individuals (2021: 12) who serve as

members of the University Executive Board having authority and responsibility for planning, directing, and

controlling the activities of the Institution. Staff costs include compensation paid to key management

personnel.

2022

2021

£’000

£’000

Key management personnel compensation

1,959

1,833

A list of current members of University Executive Board is publicly available on our website:

www.cardiff.ac.uk/about/organisation/university-executive-board

Compensation for loss of office to higher paid employees

No compensation payments were made to higher paid employees in year (2021: nil)

Consolidated

Institution

2022

2021

2022

2021

FTE

FTE

FTE

FTE

Average staff numbers by major category

:

Restated

Restated

Clinical and non-clinical academic and

academic related

4,599

4,389

4,591

4,389

Technical services

219

214

219

214

Administrative support

981

962

971

962

Operational services

233

236

233

236

6,032

5,801

6,014

5,801

Notes to the Financial Statements

Year ended 31 July 2022

62

8. Staff Costs (continued)

Other higher paid staff

The remuneration of higher paid staff (excluding the Vice Chancellor) reflected in the ranges below exclude

employer pension contributions, bonuses, and compensation for loss of office but include payments made

on behalf of the NHS in respect of its contractual obligation to Institution staff under separate NHS contracts

of employment. These payments are excluded from the Institution’s Income and Expenditure account. Of the

151 staff earning in excess of £100,000 in 2022 (2021: 149), 43 (2021: 53 Restated) include such

payments on behalf of the NHS.

2022

2022

2022

2021

2021

2021

Salary Band

NHS

No.

Other

No.

Total

No.

NHS

No.

Restated

Other

No.

Restated

Total

No.

Restated

£100,000 - £104,999

1

33

34

1

23

24

£105,000 - £109,999

-

21

21

1

21

22

£110,000 - £114,999

1

10

11

3

8

11

£115,000 - £119,999

2

8

10

4

8

12

£120,000 - £124,999

7

6

13

7

3

10

£125,000 - £129,999

1

5

6

1

7

8

£130,000 - £134,999

2

9

11

2

7

9

£135,000 - £139,999

2

4

6

3

4

7

£140,000 - £144,999

5

4

9

8

4

12

£145,000 - £149,999

4

2

6

4

1

5

£150,000 - £154,999

3

-

3

3

1

4

£155,000 - £159,999

2

-

2

3

5

8

£160,000 - £164,999

1

2

3

1

-

1

£165,000 - £169,999

1

1

2

3

3

6

£170,000 - £174,999

3

1

4

2

-

2

£175,000 - £179,999

2

-

2

3

-

3

£180,000 - £184,999

4

-

4

1

-

1

£185,000 - £189,999

1

2

3

3

1

4

£200,000 - £204,999

1

-

1

-

-

-

43

108

151

53

96

149

Notes to the Financial Statements

Year ended 31 July 2022

63

8. Staff Costs (continued)

Emoluments of the Vice Chancellor

2022

£’000

2021

£’000

Salary

289

271

Bonus

1

-

Benefits-in-kind

20

22

310

293

Pension Death in Service Enhanced Opt-out contribution only

16

5

326

298

The benefits-in-kind received by the Vice Chancellor are as follows (£000s):

Private medical insurance

1

1

Permanent accommodation

19

21

The remuneration of the Vice-Chancellor is set by the Remuneration Committee, which comprises

independent lay members of Council who possess relevant knowledge and expertise. The Vice-Chancellor

is not in attendance for, and does not play any part in, the discussions and decisions of his own

remuneration.

The Vice-Chancellor’s Reward Scheme involves:

-

an annual review of base pay in relation to the market; and

-

a long-term lump sum non-pensionable performance-related bonus payment linked to the

achievement of the Way Forward 2018-2023.

The scheme builds on the principles of the Senior Salary Review process as outlined in the Senior Staff

Pay Policy and is designed as a long-term incentive plan to reward and retain the Vice-Chancellor with a

view to delivery of the Way Forward Strategy 2018-23

The Remuneration Committee determines the remuneration according to several factors including, but not

limited to:

-

the Vice-Chancellor’s leadership, management, and academic experience within the higher

education sector.

-

the breadth of leadership and financial responsibilities for the Institution.

-

the benchmarking of base salary against the annual salary of Vice Chancellors of Russell Group

universities and other institutions of comparable size and scope.

-

The performance of the Institution according to the strategy and agreed metrics.

Each year, the Remuneration Committee receives a report by the Chair of Council on the Vice Chancellor’s

Performance Development Review (which includes input from Council members) and agreed objectives for

the following year.

This information will also support the final performance review against the Vice Chancellor’s 5-year

Reward Scheme. This Scheme runs to 2023 at which point any performance payment will be made. The

Vice Chancellor does not receive any annual performance payments.

The Vice-Chancellor’s base salary is reviewed in line with national pay awards for the Higher Education

sector.

The Vice-Chancellor’s basic salary is 7.2 times (2021: 7.0 times) the median pay of all staff, where the

median pay is calculated on a full-time equivalent basis for the salaries and wages paid by the Institution.

The Vice-Chancellor’s total remuneration is 7.6 times (2021: 7.6 times) the median total remuneration of all

staff, where the median total remuneration is calculated on a full-time equivalent basis for the total

remuneration paid by the Institution.

As per HEFCW Accounts Direction, remuneration includes personal service companies that are deemed by

the Institution to be employees under HMRC Intermediary Regulations (IR35) and paid through payroll and

reported to HMRC via “Real-time Information” (RTI) reporting.

Notes to the Financial Statements

Year ended 31 July 2022

64

9.

Interest and Other Finance Costs

Consolidated

Institution

2022

£’000

2021

£’000

2022

£’000

2021

£’000

Bond interest & finance costs

11,594

9,915

11,594

9,915

Bank loan interest

386

526

386

526

Other interest & finance costs

-

7

-

-

11,980

10,448

11,980

10,441

Net charge on pension schemes (Note 21)

1,640

1,430

1,640

1,430

Unwind of discount on USS pension provision

(Note 21)

752

620

752

620

14,372

12,498

14,372

12,491

Notes to the Financial Statements

Year ended 31 July 2022

65

10.

Analysis of Expenditure by Activity

Consolidated

Staff

costs

£’000

Other

operating

expenses

£’000

Interest

Payable

£’000

Total

2022

£’000

Total

2021

£’000

Restated

Academic departments

200,188

55,847

-

256,035

236,621

Academic services

20,409

16,136

-

36,545

37,022

Research grants and contracts

54,281

32,629

-

86,910

81,576

Other services rendered

14,005

24,229

-

38,234

32,143

Residences, catering and conferences

5,271

13,096

386

18,753

11,827

Premises

7,014

37,334

-

44,348

46,742

Administration and central services

37,860

30,336

-

68,196

67,361

Other expenses

4,625

3,290

11,594

19,509

21,865

Pension fund adjustments

(4,440)

-

2,392

(2,048)

2,111

339,213

212,897

14,372

566,482

537,628

Depreciation (note 11)

40,041

40,644

Staff costs – Increase in USS pension scheme provision (note 21)

118,781

2,394

Staff costs – Voluntary Severance Scheme

9

482

Total per Statement of Comprehensive Income and Expenditure

725,313

580,788

Institution

Staff

costs

£’000

Other

operating

expenses

£’000

Interest

Payable

£’000

Total

2022

£’000

Total

2021

£’000

Restated

Academic departments

200,188

55,847

-

256,035

236,621

Academic services

20,409

16,136

-

36,545

37,022

Research grants and contracts

54,281

32,629

-

86,910

81,576

Other services rendered

14,005

24,229

-

38,234

32,143

Residences, catering and conferences

5,271

13,096

386

18,753

11,827

Premises

7,014

37,334

-

44,348

46,742

Administration and central services

37,860

30,336

-

68,196

67,361

Other expenses (see Page 66)

4,172

1,405

11,594

17,171

20,705

Pension fund adjustments

(4,440)

-

2,392

(2,048)

2,111

338,760

211,012

14,372

564,144

537,268

Depreciation (note 11)

40,041

40,644

Staff costs – Increase in USS pension scheme provision (note 21)

118,781

2,394

Staff costs – Voluntary Severance Scheme

9

482

Total per Statement of Comprehensive Income and Expenditure

722,975

579,628

Consolidated and Institution 2021 Restated:

The following line items have been restated for the year ended 31 July 2021 for both the consolidated and institution

figures to better reflect the nature of the expenditure - academic services has been reduced by £14.4m,

administration and central services has been increased by £35.1m and other expenses has been reduced by

£20.7m. There is no overall impact on the amounts reported in the consolidated or institution statements of

comprehensive income from these reclassifications.

In addition, Academic departments has increased by £7.6m due to the restatement of overseas agents’ commission

costs previously offset against tuition fee income (see Note 29).

Notes to the Financial Statements

Year ended 31 July 2022

66

10.

Analysis of Expenditure by Activity (continued)

Other operating expenses include

:

2022