04 May 2022 
Matt Sisson, Projects and Membership Manager
BUFDG
We’re pleased to share the BUFDG Annual Report for 2022, which covers BUFDG activities since April 2021. As always, our aim is not to produce a glossy brochure for your virtual coffee table, but rather a balanced report of how BUFDG is run, the challenges we’ve faced, how we’ve adapted, and what our plans are for the coming year. What we hope it also captures is all the hard work that so many of you, our members, have put in to making BUFDG a success over the last 12 months. So thank you! We hope you find it a useful and enjoyable read.
NEW EXPLAINER TAX GUIDE
Our newly revised BUFDG Guide to UK Universities and Tax is now available! The document provides a high-level overview of the many areas where tax impacts on UK universities, looking at taxes relating to people, income, and expenditure. There is a myth that universities, as charities and/or public bodies, simply do not pay tax, and so tax is not an issue. Unfortunately, this is not the case, as the guide demonstrates!
So, whether you: work in academia, estates, finance, governance, HR, international development, planning, procurement, or research; have worked in the university sector for some time or are new to it; need a refresher, or; are simply curious about tax and universities, we hope that you will find the new guide useful. And please forward this link to anyone who needs a little bit more background, such as academics, board members or those who are simply curious about tax and universities!
SECTOR / GENERAL
UUK has published its response the government consultation on the Lifelong Loan Entitlement (LLE). The response is broadly positive and supportive, and includes ‘five key messages’. Read more on the UUK website here.
The IFS has published a briefing on the impact of government proposals for minimum academic eligibility requirements for access to student loans. Wonkhe’s David Kernohan shares his thoughts on the matter.
The latest round of sector pay negotiations is ongoing, with sizeable differences between the request by unions and the offer from employers. A recent summary can be found on the UCEA website, with the latest documents (including a revised offer from employers, and new pay-spine modelling) available here.
Universities UK (UUK) has announced that Vivienne Stern – currently the Director of Universities UK International (UUKi) - has been appointed as the new Chief Executive, and will start in post in September 2022. The press release says that “Alistair Jarvis CBE, who has been UUK’s Chief Executive since 2017 and member of the senior team since 2013, will be leaving the organisation at the end of May to take up a new role at the University of London as Pro Vice-Chancellor Partnerships and Governance.”
NCUB’s most recent quarterly International Interactions bulletin is available to read. These provide fantastic insights into the impact that universities make to the wider economy and society.
FINANCIAL REPORTING / PENSIONS
The deficit modeller has been rolled forward to 2021/22. This modeller reflects the agreed contribution rates which came into force from 1/4/22 following the conclusion of the 2020 valuation and subsequent negotiations. The discount rates as at 31 July 2022 should be available within a week of the year end.
The Office for Students has confirmed that there will be no new Accounts Direction issued for 2021/22. However, it has advised that there is a possibility it will issue some minor clarifications towards the year end.
Work on the periodic review of FRS 102 is continuing, with the request for views to inform the review having closed in October 2021. The aim is to publish the ED proposing changes to FRS 102 not before September 2022. The effective date of the changes will be no earlier than 1 January 2025 i.e. year end 2025/26 (previously informed as 2024/25). FRC has heard support for on-balance sheet lease accounting in FRS 102 in this Periodic Review, subject to appropriate simplification of IFRS 16 requirements; IASB tentatively decided to leave leasing unchanged in the IFRS for SMEs Standard in this Comprehensive Review. The FRC are holding roundtable discussions on lease accounting, credit loss accounting and revenue accounting that anyone can dial into, however prior registration is required.
USS have released their Interim Monitoring of the Financial Management Plan report as at February 2022. It shows an indicative improvement in the funding position at February 2022 compared to the 31 March 2020 valuation, writes Rebecca Dodd, Head of Mercer’s Higher Education Group.
Doubts have been cast on the timing and substance of government reforms of corporate audit and governance, after reports from Westminster suggest the expected draft bill has been pulled from next week’s Queen’s Speech, which sets out the programme for the next year of parliament. The FT reports on why this would be a bad idea.
TAXES
We have obtained confirmation from HMRC, that packaging used for non-business or non-commercial activities does not count towards the 10 tonne PPT threshold. Therefore, it is highly unlikely that any university will be above the threshold. There’s more information in this article.
Andrea and Julia are very busy with conference brochures, adverts, entertainment, sessions and CVs. We will be posting the full session breakdowns next week so if anyone hasn’t yet booked their place, please do so as soon as possible as spaces are limited and filling up! You can see the “first glimpse” of the conference timetable here and can Register your place here.
The next round of PEG meetings will take place online and you can register your place using the following links: Wales – 10 May, 10am to midday; North – 10 May, 1pm to 3pm; Midlands – 11 May, 1pm to 3pm; Scotland – 12 May, 1pm to 3pm; South – 12 May, 10am to midday; London/Southeast – 16 May, 1.30pm to 3.30pm.
HMRC has published the latest Employer Bulletin, containing a large number of relevant updates. Andrea and Julia have summarised these in the latest TaxHE newsletter.
We’re currently creating the first of four customs-related e-learning courses: Import Basics for Finance Staff. Would you like to help us test it once it’s ready? We don’t have a timescale on testing just yet, but if you’re interested in testing the course please let Amanda know and we’ll be in touch when we’ve got some dates.
COUNTER-FRAUD
WPM are running a free event on counter-fraud and anti-money laundering on the 12th May. It is a hybrid event, with the opportunity to attend either in person or virtually. For more information and to register, visit the event website.
In related news, the University of Portsmouth’s Centre for Counter-Fraud Studies’ (CCFS) annual counter fraud conference is returning to in-person for this year. It’s on 14 June, and it’s £90 for general sector attendees. Places can be booked here.
OTHER
Some fascinating discussions on the BUFDG discussion boards this week. Lots of institutions are sharing information on the size and shape of Payroll teams, Amanda would still like to know what you think of course costing best practice, and the case continues with Green car salary sacrifice schemes.
Eversheds is hosting a number of webinars that will be useful to HE finance teams. There's a company law refresher on the 17th June, legal considerations for Subsidiairy Companies on 15th June, and an Introduction to Transnational Agreements on 22nd June.
There are lots of interesting discussions on Wonkhe too this week. You can read about whether the UK needs more graduates or not, the impact of the pandemic on learning and teaching, and why it’s so hard for student financial support to keep up with inflation.
ATFS has published its latest bulletin, covering Payment Strategies and Rising Interest rates. This, plus all other bulletins, can be found on the Supporter Directory page.
Our Job(s) of the Fortnight is for a range of Senior Buyers at the University of Edinburgh, working across IT & Telecoms, Professional & Campus Services, Estates & Facilities, and Labs & Medical. The deadline for applications is 13 May. There are lots of other vacancies listed as usual on the BUFDG jobs page.
