Hartpury Annual Report July 2025

Hartpury University Annual Report and Financial Statements > 2024/2025

Notes to the Financial Statements Year Ended 31 July 2025

Going concern

1. Statement of Principal Accounting Policies General Information The Institution of Hartpury University in Gloucestershire is registered with the Office for Students. The address of the registered office is Hartpury University, Hartpury, Gloucester, GL19 3BE

Basis of consolidation The activities of the University, together with the factors likely to affect its future development and performance, are set out in the Strategic Report. The financial position of the University, including its cash flow, liquidity, and borrowings, is presented in the Financial Statements and accompanying Notes. The University currently has £19.901m of combined loans outstanding with Lloyds and Triodos. None of the loans are secured. The terms of the existing agreements range between six and fifteen years. The University’s forecasts and financial projections indicate that it will be able to operate within these existing facilities and comply with associated covenants for the foreseeable future. The University has a reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future and, for this reason, will continue to adopt the going concern basis in the preparation of its Financial Statements. Exemptions under FRS 102 The University has taken advantage of the exemption available under section 3.3 of the FEHE SORP (paragraph 1.12(b) of FRS 102) and has not presented a cash flow statement for the Institution in its separate financial statements. The consolidated financial statements include the financial statements of the Institution and all its subsidiaries controlled by the Group for the year ended 31 July 2025. Control is achieved where the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiaries acquired or disposed of during the year are included in the Consolidated Statement of Comprehensive Income from the date of acquisition or up to the date of disposal. Intra-group transactions are eliminated on consolidation. Financial statements are prepared to 31 July 2025 for Hartpury College of Further Education and Rudgeley Services Limited. The accounting year end for Hartpury Rugby Limited and Hartpury Football Club Limited is 30 June 2025. Gains and losses arising from intra-group transactions are eliminated in full. Amounts relating to debts and claims between undertakings included in the consolidation are also eliminated. Balances between the Institution and its associates and joint ventures are not eliminated. Normal trading transactions that are not settled by the balance sheet date are included as current assets or liabilities. Any gains or losses are included in the carrying amount of the assets of either entity, with the portion relating to the Institution’s share eliminated on consolidation.

Statement of compliance

The Consolidated and Institution financial statements have been prepared in accordance with United Kingdom Accounting Standard 102 (FRS102) and the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education issued in 2022. They have also been prepared in accordance with the ‘carried forward’ powers and duties of previous legislation (Further and Higher Education Act 1992 and the Higher Education Act 2004) and the new powers of the Higher Education and Research Act 2017 during the transition period to 31 July 2019, the Royal Charter, the Accounts Direction issued by the Office for Students (OfS), the Terms and Conditions of Funding for Higher Education Institutions issued by the Office for Students and the Terms and Conditions of Research England Grants. The Institution is a public benefit entity and therefore has applied the relevant public benefit requirement of the applicable UK laws and accounting standards. As a result of the Office for National Statistics (ONS) decision to reclassify further education colleges, sixth-form colleges and designated institutions in England (‘colleges’) to the central government sector,the College now meets the overall requirements in HM Treasury’s document, ‘Managing Public Money’ (MPM), and other related obligations. Basis of preparation These consolidated and institutional financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities at fair value. The Institution’s activities, together with the factors likely to affect its future development, performance, and position, are set out in the Operational and Financial Review, which forms part of the Board of Governors’ Report. The Board of Governors’ Report also describes the financial position of the Institution, its cash flows, liquidity position, and borrowing facilities. The Board of Governors reviews forward financial forecasts and has a reasonable expectation that the Institution has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Institution continues to adopt the going concern basis of accounting in preparing the annual financial statements.

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