Statement of Accounts 2020 / 21
Notes to the Accounts For the year ended 31 July 2021
31 Related Party Transactions ( continued )
During the financial year 1999 / 2000 , the University undertook a securitisation deal in respect of the rental income flow from its Halls of Residence up to 2029 with Keele Residential Funding plc . In 2006 / 07 , this was extended to 2047 . The University received a premium on both occasions , and this premium ( together with associated costs ) is being released to the Statement of Comprehensive Income and Expenditure over the life of the agreements . The residual premium and associated costs are recognised as deferred income and prepayments respectively on the Balance Sheet .
The university collects rent on behalf of Keele Residential Funding plc under a Letting Services agreement and passes these rents over on an annual basis . Halls of Residence rental income is recognised in full within income for the University , with the payment to Keele Residential Funding plc being a cost recognised in other operating expenses . Keele Residential Funding plc pays the University a management fee for the management of the Halls of Residence , which is included within income , and disclosed in note 5 to the accounts .
As part of these agreements , the University leases a proportion of its student accommodation portfolio to Keele Residential Funding plc . The assets leased remain on the balance sheet of the University , because the substance of the transaction is that they will fully revert back to the University at the end of the agreement in 2047 . The updated net book value on the University fixed asset register as at 31 July 2021 of these assets is £ 84,736k ( 2020 : £ 86,973k ).
Additionally , the University has a contractual duty to maintain and refurbish the student halls of residence . Investments of £ 26,423k ( 2020 : £ 26,794k ) have been set aside in fixed asset investments as at 31 July 2021 to enable the University to meet its future obligations in respect of the agreed refurbishment programme . These investments are shown as part of the Keele Residential Funding investments . The University is required to ensure funds are maintained at a level to ensure compliance with agreed maintenance programmes and failure to comply may result in monies being withheld from annual University facilities management payments due from Keele Residential Funding plc .
As highlighted in note 15 ( d ), the University holds shares in KRF Holdings Ltd , but does not consolidate its accounts into the University accounts . KRF Holdings Ltd owns 100 % of the share capital of Keele Residential Funding plc , which owns 100 % of the share capital of KRF Management Ltd .
32 Pension Schemes The University contributes to the following pensions schemes :
Name of pension scheme Type of pension scheme accounted as
( i ) |
Universities ’ Superannuation Scheme ( USS ) |
Multi-employer ( Contributions plus recognise contractual commitment to fund past deficits ) |
( ii ) |
Keele Superannuation Scheme ( KSS ) |
Defined benefit |
( iii ) |
Local Government Pension Scheme ( LGPS ) |
Defined benefit |
( iv ) |
National Health Service Pension Scheme ( NHSPS ) |
Multi-employer ( Contributions only ) |
( v ) |
National Employment Savings Trust ( NEST ) |
Defined contribution |
The two principal pension schemes for University staff are USS and KSS . The assets of these pension schemes are held in separate trustee administered funds .
Year Ended |
Year Ended |
31 July 2021 |
31 July 2020 |
£’ 000 |
£’ 000 |
Contributions paid USS |
12,820 |
12,519 |
KSS |
- |
- |
LGPS |
107 |
224 |
NHSPS ( includes invoiced amounts for additional NHS pension costs ) |
467 |
478 |
NEST |
8 |
17 |
|
13,402 |
13,238 |
Actuarial adjustment USS |
( 2,405 ) |
( 33,501 ) |
KSS |
66 |
61 |
LGPS |
( 26 ) |
( 202 ) |
|
( 2,365 ) |
( 33,642 ) |
Total pension cost for year ( charged to staff costs in the Statement of Comprehensive Income and |
|
|
Expenditure as per Note 8 ) |
11,037 |
( 20,404 ) |
63