Hartpury Annual Report July 2025

Hartpury University Annual Report and Financial Statements > 2024/2025

Notes to the Financial Statements (continued) Year Ended 31 July 2025

Income Recognition

Funding body recurrent grants received from the Education and Skills Funding Agency (ESFA) are measured in line with best estimates for the period over which they are receivable and depend on the income stream involved. Any underachievement for the Adult Education Budget is adjusted for and reflected in the level of recurrent grant recognised in the Consolidated Statement of Comprehensive Income. The final grant income is normally determined following the conclusion of the year-end reconciliation process with the ESFA after the year end, and the outcome of any related funding audits. Funding for 16–18 learner-responsive provision is not normally subject to reconciliation and is therefore not subject to contract adjustments. Non-exchange transactions without performance-related conditions are classified as donations and endowments. Donations and endowments with donor-imposed restrictions are recognised in income when the Institution is entitled to the funds. Income is retained within the restricted reserve until it is utilised in accordance with the relevant restrictions, at which point the income is released to general reserves through a reserve transfer. Donations and endowments

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 external customers or when the terms of the contract have been satisfied. Tuition fee income is stated gross of any expenditure that is not a discount and is credited to the Consolidated Statement of Comprehensive Income over the period in which students are studying. 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 as expenditure and are not deducted from income. Income from education contracts is recognised when the Institution is entitled to the income, which is typically over the period in which students are studying or, where relevant, when performance conditions have been met. Investment income is credited to the Consolidated Statement of Comprehensive Income on a receivable basis. Funds received and disbursed by the Institution 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 derives minimal benefit related to the transaction. Grant funding Government revenue grants, including funding body block grants and research grants, are recognised in income over the periods in which the Institution recognises the related costs for which the grant is intended to compensate. Where part of a government grant is deferred, it is recognised as deferred income within creditors and allocated between amounts due within one year and amounts due after more than one year, as appropriate. Grants, including research grants, from non-government sources are recognised in income when the Institution is entitled to the income and any performance-related conditions have been met. Income received in advance of performance-related conditions being met is recognised as deferred income within creditors in the Statement of Financial Position and released to income as the conditions are satisfied. The recurrent grant from the Office for Students (OfS) represents the funding allocations attributable to the current financial year and is credited directly to the Consolidated Statement of Comprehensive Income.

Donations with no restrictions are recognised in income when the Institution is entitled to the funds.

Investment income and appreciation of endowments are recorded in income in the year in which they arise and are classified as either restricted or unrestricted income according to the terms or other restrictions applied to the individual endowment fund.

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 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. Donations of tangible assets are recognised within income. The income recognised is valued using a reasonable estimate of the asset’s gross value or the amount realised. Donated tangible assets are valued and accounted for as tangible assets under the appropriate asset category.

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