Universities support each other’s work to improve the representation, experience, progression and success of racially minoritised staff and students within higher education.

All eight universities in Wales – Aberystwyth University, Bangor University, Cardiff University, Cardiff Metropolitan University, Swansea University, University of South Wales, University of Wales Trinity Saint David and Wrexham University – have collaborated to achieve a Race Equality Charter Bronze award. The Race Equality Charter’s mission is to improve the representation, experience, progression and success of racially minoritised staff and students within higher education. It provides a rigorous and robust framework through which institutions work to critically reflect and act on institutional and cultural barriers standing in the way of their progression and success.

Anne Mwangi, Head of the Race Equality Charter, said, “This achievement in three years is exceptional and a fantastic outcome for tertiary education in Wales, demonstrating the commitment to advance race equity. REC Bronze is recognition of an institution’s robust foundation for eliminating racial inequalities, developing inclusive cultures and moving from commitment to sustainable and integrated bold and ambitious action.

“The universities have collaborated throughout the process, sharing best practices and innovative approaches that have enriched their individual action plans, each carefully tailored to their specific institutional context. These awards follow rigorous independent peer reviews of each separate application. The reviewers all come from the sector.

“Advance HE looks forward to supporting these institutions as they progress their action plans to advance race equality.”

Kieron Rees, Director of Learner Experience at Medr, said: “This is significant achievement by Wales’s universities. We, like our predecessor body HEFCW, are proud to have been able to support universities in this important work. We would like to pay tribute to the hard work of staff in securing this recognition.

“We know that universities will continue with their progress in this area, building on the strong foundations of having achieved the Advance HE Race Equality Charter Bronze Award. We too will continue to work with the Welsh Government, the tertiary education and research sector, and key sector partners to make progress towards achieving an anti-racist Wales and ensure inclusive learning and work environments for all.”

Professor Paul Boyle, Chair of Universities Wales, said: “This notable achievement by Wales’s universities is testament to the sector’s ongoing commitment to creating safe, inclusive and supportive learning environments for both staff and students. It also highlights what can be accomplished through collaboration and shared purpose.”

The awards in Wales coincide with the tenth anniversary of the Race Equality Charter. Improvements in representation have been seen for racially minoritised staff in the ten years in the UK since the REC was established:

• The proportion of racially minoritised academics has increased by 9.6 percentage points from 12.8% in 2012/13 to 22.4% in 2022/23
• The proportion of racially minoritised professors has increased by 4.4 percentage points from 8.4% of professors in 2012/13 to 12.8% of professors in 2022/23
• The proportion of racially minoritised Heads of Institutions has increased by 10.5 percentage points, from 0% in 2012/13 to 10.5% in 2022/23.

Advance HE will support all eight universities as they work to implement their action plans and progress race equality in Welsh higher education, just as it has done so during the work to achieve these awards.

Notes:

Medr

• Funding was originally provided by Medr’s predecessor body the Higher Education Funding Council for Wales (HEFCW) W22/05HE: Consultation on funding to support race equality in higher education to tackle anti-racism and support culture change in higher education, in line with race, access and success policy developments and the Anti-Racist Wales Action Plan. The initial publication included the conditions of match funding and the expectation that universities achieve a race equality charter award by 2024/25. All universities confirmed to HEFCW their intention to meet this commitment by the end of 2025.

Advance HE

• This year also marks the twentieth anniversary of the Athena Swan Charter, a framework to support and transform gender equality within higher education (HE) and research.  Advance HE’s Equality Charters are catalysts for change – supporting higher education institutions and research institutes in their work to transform their cultures and make an impact on the lives of staff and students. 
• In January 2026, we will be launching the Inclusive Institutions Framework, designed to help institutions align and embed their equality, diversity, inclusion (EDI), widening participation, and access priorities. Find out more.

This news item was originally published by Advance HE: All eight of Wales’s universities have achieved the Race Equality Bronze Award.

Main points

What are graduates doing?

Of graduates from Welsh higher education (HE) providers who responded to the 2022/23 Graduate Outcomes survey:

• 68% were in paid employment, 1% were doing voluntary or unpaid work, 7% were doing further studies and 11% were doing a combination of work and further studies.
• 6% were unemployed and 7% were doing another activity such as travelling, caring for someone, or retired.

Of graduates from Wales studying anywhere in the UK who responded to the 2022/23 Graduate Outcomes survey:

• 70% were in paid employment, 1% were doing voluntary or unpaid work, 6% were doing further studies and 11% were doing a combination of work and further studies.
• 4% were unemployed and 7% were doing another activity such as travelling, caring for someone, or retired.
• Full-time undergraduate respondents from the most deprived Welsh Index of Multiple Deprivation (WIMD) quintile were less likely to be in full-time employment or full-time further studies, and more likely to be in part-time employment, than those from the least deprived WIMD quintile.
• 6% of full-time undergraduate respondents were unemployed; this was the same for all WIMD quintiles.

Where are graduates working?

Of graduates who responded to the 2022/23 Graduate Outcomes survey and said work was their most important activity:

• 88% of those from Wales who studied at a Welsh HE provider stayed in Wales to work.
• 20% of those who studied at a Welsh HE provider but were from the rest of the UK stayed in Wales to work.
• 43% of those from Wales but studied at a HE provider in the rest of the UK returned to Wales to work.

Graduate reflections

Of graduates from Welsh higher education providers who responded to the 2022/23 Graduate Outcomes survey:

• 84% agreed or strongly agreed that their current activity was meaningful.
• 69% agreed or strongly agreed that their current activity utilised the skills that they learnt during their studies.
• 75% agreed or strongly agreed that their current activity fits with their future plans.

Introduction

1. This circular requests higher education institutions to submit the following information:
• Part 1 – Financial estimates for the current year 2024/25 and financial forecasts for 2025/26 to 2028/29
• Monthly cash flow forecasts for the 12 months to 31 July 2026
• Accompanying narrative commentary
• Part 2 – Student numbers for the current year 2024/25 and forecasts for 2025/26 to 2028/29

More detailed notes of guidance are set out below. Copies of the returns to be submitted are attached at the annexes to this circular, along with further technical information. Electronic copies of some partially pre- completed annexes are being sent to the relevant contacts at institutions in order to commence the forecast submission process. The financial forecast model workbook and commentary (with relevant guidance notes for completion) is attached to this circular at Annex B, in addition to a workbook to include validation checks linking the forecast student numbers to the forecast fee income for home and overseas students (Annexes C1a, C1d C2).

Background and institutional strategic planning

2. We require institutions to submit financial and student number forecast information on an annual basis. This is to enable us to understand the past and expected future financial performance of institutions, and is also an important source of information to support Fee and Access Plan submissions and strategic dialogue between Medr and the institutions.

Strategic context

3. In responding to this circular, institutions should take account of the various key circulars and other publications relating to higher education policy, strategy and funding developments in Wales. Key sources are included below, with links to the prior year publication where the 2025/26 details have not been published at time of issue. These include:
• The Minister’s annual funding letter to Medr announces higher education funding and priorities for the fiscal year.
• Medr Funding assumptions AY 2025/26 have been issued to Heads of institutions.
• Medr circulars setting out core grant allocations. The most recent circulars at time of publication have been referenced:
o Higher Education Students Early Statistics Survey (Medr/2024/09)

Summary of information requirements

4. We are issuing individualised financial and student forecast data returns to each institution separately. These are sent, as appropriate, to directors of finance and data contacts as nominated by the head of the institution. All institutions should submit their completed returns by the dates indicated to [email protected]. In addition to the specific purposes outlined above, all of the information requested through this circular will provide evidence to inform our Institutional Risk Review process.

5. Institutions should note that we will be seeking high level updates to financial and student forecasts in November 2025. This will be to inform our analysis of the financial implications of changes to the forecasts as a consequence of the updated student recruitment position for 2025/26.

Part 1 – Financial forecasts for the period 2024/25 to 2028/29

6. Our objectives in requesting financial forecasts are to enable us to:
• monitor the financial health of institutions;
• monitor whether institutions’ forecasts take account of the prevailing higher education environment;
• gain assurance that effective financial planning arrangements are in place;
• ensure that governing bodies are appropriately engaged in the financial forecast and planning processes of the institution;
• check that institutions’ strategic and financial planning are integrated; and
• produce information at summary level on the overall trends and financial health of the HE sector in Wales.

7. For the current submission we ask institutions to prepare five-year financial forecasts, covering the period to 2028/29. In order to minimise work load for institutions we have pre-populated the 2022/23 and 2023/24 actuals columns in the models, where possible, to assist with identification of any trends in performance. We have also pre-populated the forecast for the year 2024/25 (as submitted to us in July 2024). We will expect financial forecasts to be based on relevant circulars on funding and student number allocations.

8. Financial forecast information should be submitted to us at [email protected] by 31 July 2025.

9. In preparing the forecasts institutions should make reference to the planning assumptions outlined in Annex A and to the documents listed in paragraph 3 above.

Content of the financial forecasts

10. The form and content of the financial forecast models 2024/25 to 2028/29 is similar to that submitted by institutions in July 2024. Please note that completion of the five-year forecasts, the commentary and the monthly cash flow statement is compulsory and should reflect the requirements of the HEFCW Financial Management Code (FMC) (circular HEFCW W17/16HE) between Medr^[1] and the institutions. The forecasts should be based on realistic assumptions. To aid comparability they should be consistent with any changes to accounting treatment and presentation and allocation in the last financial statements and HESA finance record.

Required returns

11. This circular includes a number of annexes for returning to Medr:
(i) The financial forecast template (Annex B1). We will email the institution specific partially pre-filled tables to data contacts and finance directors.
(ii) The financial forecast commentary (Annex B2) requests further narrative analysis of the tables in the forecast model.
(iii) Monthly cash flow projections for the 12 months to July 2026 are also required.

Summaries of the requirements for each are given below. Guidance on completion of the main forecast is given in Annex B3.

Financial forecast template (Annex B1)

12. We expect any growth over the 2024/25 recruitment figures to be fully explained, with robust supporting evidence provided.

13. The financial forecast includes a ‘down-side’ template for 2025/26. There remain significant uncertainties within the sector and wider economy, and this template provides assurance that your governing bodies have appropriately considered down-side scenarios as well as providing us with data to assess risk to the sector:
(i) Adjustments should also be included in other areas of the forecast where such growth is not certain or where cost is predicated on student number growth, for example facilities and residences.
(ii) Costs are assumed at the level of your 2025/26 forecast. Mitigating actions required should be clearly detailed in the forecast narrative.

14. Detailed guidance on completion of the financial forecast template is given in Annex B3. Guidance on changes to the template are denoted in blue for ease of reference.

Financial forecasts commentary (Annex B2)

15. Institutions should provide a commentary on the financial forecasts using the pro forma at Annex B2. This lists detailed requirements for information on a number of key aspects of the financial forecast, but the overall aim is for institutions to provide:
(i) assurance that the financial forecasts are derived from and are consistent with the institution’s current strategic plan and financial strategy and that there is connectivity to recent financial performance as well as the latest intelligence that could affect forecasts such as student recruitment ;
(ii) additional supporting information on the key assumptions in the financial forecasts; and
(iii) an explanation of important trends in the forecast numbers across the period, especially with respect to the key indicators such as liquidity, operating cash flow, operating surplus and cash generation.
(iv) a narrative on contingency planning for the main challenges identified by the institution. This should include any impact on recruitment of both home and overseas students and returners, together with the financial consequences on tuition fees and related income streams for income, net operating cash flow and cash generation.
(v) In the current climate we would expect the narrative to include consideration of the higher risk exposures to which the institution is exposed, due to the requirement to diversify income from full time UK undergraduate students, and any related additional cost sensitivity and other modelling of these risks
(vi) On the cost side we would expect the narrative to include consideration of the risk of inflationary pressures, both staff and non-staff, and the degree of sensitivity to these of the institution’s plans.
Changes to the requirements from 2024 are highlighted in yellow.

Monthly cash flow forecasts

16. We are requesting submission of monthly cash flow forecasts for the 12 months to July 2026. The preparation of 12 months cash forecasts is a requirement of the Financial Management Code [para 83]. To facilitate this, we are not requiring a prescribed format for these returns. However we do require that:
a. the return is prepared in sufficient detail to clearly identify the main income and expenditure streams;
b. any anticipated utilisation or pay back of investments or borrowing facilities is clearly identified;
c. monthly net cash in / (out) flow is shown;
d. monthly opening and closing cash at bank balances are shown separately from use of short term investments / borrowing facilities; and
e. total liquid assets, and available borrowing facilities are shown on a monthly basis. Where appropriate any restricted cash should be clearly identified as distinct from free reserves.
f. Year-end cash balances should agree to the forecasts submitted.

17. Whilst we will continue to monitor actual cash flows against these forecasts as part of our regular discussions with finance directors, it remains the responsibility of each institution’s governing body to inform Medr of reportable events, including any forecast cash deficits. We would draw your attention to paragraph 84 of the Financial Management Code:
The governing body must inform HEFCW [now Medr] immediately if, at any point in the upcoming 12 months, negative net cash (as defined within FRS 102 S(7), including cash and cash equivalents) is forecast for more than 30 consecutive days.

Part 2 – Student numbers for the current year 2024/25 and forecasts for 2025/26 to 2028/29 

18. The information for student fee income forecasts is required separately at Annex C. The student number information in Annex C is populated automatically from the tables in Annex E, to aid reconciliation with student fees. Guidance for the student number forecast can be found at Annex D.

19. There is an integral relationship between an institution’s assumptions about future changes to its student population and its financial forecasts. Therefore the student forecasts are important features underpinning an institution’s strategic plan and financial forecasts.

20. Institutions are asked to submit, to [email protected], by 31 July 2025 forecasts of all HE student numbers (Home fundable, Home non-fundable and Overseas) for the five years 2024/25 to 2028/29. This includes forecasts of transnational education (TNE) student numbers at EU and overseas (non-EU) campuses, to be included in Annex E, SPF3 and the related fees income to be included in tab Annex C2. Annex D contains information on the tables and guidance to assist the accurate completion of the returns. A template copy of the tables to be completed is attached for information at Annexes C and E. We will email institution individual tables which contain validation and summary information. Tables in tab Annexes C1 and C2 are included in the same workbook as tab Annex E, and credibility checks have been introduced to help check student number returns alongside fee income data. It is these tables that need to be completed and returned.

21. In addition to the forecasts, we are requesting information on student numbers for the current year 2024/25. This is to ensure that we can make comparisons of the most recent student population against the student fee income data returned in tab Annexes C1 and C2. We recognise that it will still include an element of estimation as the academic year will not have ended but will provide us with more accurate numbers to make a comparison with assumptions made in preparing the forecast fee income figures. For reference, figures from Table 1 of the 2024/25 higher education students early statistics (HESES) survey have been included as a supplementary table.

22. In general, the definitions contained in circular Medr/2024/09, Higher Education Students Early Statistics (HESES) survey 2024/25 and in the HESA Aggregate Offshore record should be used in compiling the student forecast information required by this circular. Details can be found in Annex D.

23. Assumptions should be consistent with those presented in Annex A, and any other relevant assumptions used in the preparation of the financial forecasts.

24. Further notes on completion of the tables can be found in Annex D.

Freedom of information

25. We will treat all information provided to us in this circular as confidential.

26. As a public authority Medr is subject to the Freedom of Information Act 2000. The Act gives a public right of access to any information held by a public authority. Information submitted to Medr may be disclosed on request under the terms of the Act. We have a responsibility to decide whether any responses should be made public or treated as confidential. We may refuse to disclose information in circumstances where disclosure of information would prejudice commercial interests or where information has been provided in confidence (for example, future financial projections). Further information about the Act, including the particular circumstances when information may be withheld, can be found at https://ico.org.uk/ under Freedom of Information Act.

Further information

27. Any queries regarding this circular should be directed to Diane Rowland ([email protected]).

^[1] Existing requirements in place under HEFCW, including the FMC, remain in place under Medr until Medr’s new regulatory framework is in place.

Student satisfaction among undergraduates at college and university has risen in Wales, with 82% of final year undergraduate students saying that they were satisfied with their course this year.

This is up from 80% overall satisfaction in 2024.

The National Student Survey (NSS) is open to final year undergraduate students at higher education providers in the UK nations.

In March 2025, Medr published its Strategic Plan for 2025-2030, outlining its aim to ensure that learners receive the highest-quality provision in a tertiary education sector that strives for continuous improvement.

The NSS is one of the primary indicators of student satisfaction for Medr and the tertiary education sector, capturing comprehensive feedback from final-year undergraduate higher education students on key aspects of their educational experience — from teaching quality and course organisation to how effectively their voices are heard within their institutions.

The survey was open from 11 January to 30 April 2025.

Simon Pirotte, Chief Executive of Medr said:

“We are pleased to see improvements across all question outcomes for Wales in the 2025 NSS compared to the 2024 NSS. It is also encouraging to note that Wales continues to perform broadly in line with UK-wide scores, and exceeding them in the themes of learning opportunities, assessment and feedback, academic support, organisation and management, learning resources, student voice, and the students’ union question. These outcomes are a testament to impactful work across institutions in Wales.

“Throughout the year it has been heartening to see how institutions and students’ unions have worked collaboratively to enhance the student experience and support student success. Congratulations to all on their achievements.

“Welsh institutions take NSS outcomes seriously and are committed to working in partnership with students and their representatives to drive quality enhancement and continuous improvement. Later in the year, our second consultation on registration and funding conditions will include those relating to equality of opportunity, staff and student welfare, the Welsh language and learner engagement. We will also develop a common framework for student health, mental health and well-being.

“As we look ahead to the 2025/26 academic year, the student experience continues to be a defining strength of higher education in Wales. We warmly welcome prospective and future students to study here — where they can expect high-quality degrees, supportive communities, and a truly enriching university experience.”

2025 National Student Survey results: Comparative data for each question covered by the survey

	Question	UK 2024 (positivity score%)	UK 2025 (positivity score%)	Wales 2024 (positivity score%)	Wales 2025 (positivity score%)
1	How good are the staff at explaining things?	91	93	92	93
2	How often of teaching staff make the subject interesting?	81	83	82	83
3	How often is the course intellectually stimulating?	85	86	85	86
4	How often does your course challenge you to achieve your best work?	85	87	85	87
5	To what extent have you had the chance to explore ideas and concepts in depth?	84	85	83	85
6	How well does your course introduce subjects and skills in a way that builds on what you have already learned?	85	87	86	87
7	To what extent have you had the chance to bring together ideas and information from different topics?	84	85	83	85
8	To what extent does your course have the right balance of directed and independent study?	77	79	78	80
9	How well has your course developed your knowledge and skills that you think you will need for your future?	83	85	83	86
10	How clear were the marking criteria used to assess your work/	76	78	78	80
11	How fair has the marking and assessment been on your course?	81	84	83	85
12	How well have the assessments allowed you to demonstrate what you have learned?	82	84	82	84
13	How often have you received assessment feedback on time?	80	83	83	85
14	How often does feedback help you to improve your work?	73	75	74	75
15	How easy was it to contact teaching staff when you needed to?	86	88	86	89
16	How well have the teaching staff supported your learning?	86	88	87	89
17	How well organised is your course?	74	77	75	79
18	How well were any changes to teaching on your communicated?	76	80	77	80
19	How well have the IT resources and facilities supported your learning?	85	87	84	87
20	How well have the library resources (e.g., books, online services and learning spaces) supported your learning?	90	90	90	90
21	How easy is it to access subject specific resources (e.g., equipment, facilities, software) when you need them?	86	88	86	88
22	To what extent do you get the right opportunities to give feedback on your course?	82	85	83	85
23	To what extent are students’ opinions about the course valued by staff?	77	80	78	81
24	How clear is it that students’ feedback on the course is acted on?	63	68	66	69
25	How well does the Students’ union (association or guild) represent students’ academic interests?	73	76	75	78
26	How well communicated was information about your university/college’s mental wellbeing support services?	79	82	74	79
28	Overall, I am satisfied with the quality of the course	N/A	N/A	80	82

Each question has two options to respond positively – eg “to a great extent” and “to some extent” or “very often” and “fairly often” – and two negative options to respond negatively, with a fifth “This does not apply to me option”. A ’positivity score’ is the percentage of the total sum of the two positive responses available for each question response.

There is no UK score for question 28 as this question was asked to students studying in Wales, Scotland, and Northern Ireland only and not to students studying in England.

Notes:

The National Student Survey (NSS) covers most final year undergraduate students studying for higher education (HE) qualifications at:

• all publicly funded higher education universities and colleges in England, Wales, Northern Ireland, and Scotland;
• further education institutions in Wales with directly funded higher education students;
• further education colleges in England and Northern Ireland.

The survey, carried out by Ipsos, is funded by the four UK higher education funding and regulatory bodies (Medr, the Office for Students (OfS), the Scottish Funding Council, and the Department for Economy Northern Ireland).

Full results are available on the Office for Students website. The data will be published on the Discover Uni website at a later date, providing information to inform potential students’ choices about where and what to study.

The threshold for publication at institution level is that at least 10 students must have responded, and that these should represent at least half the students eligible to participate.

More than 357,000 students responded to the survey, a 71.5% response rate.

Student satisfaction data for the Open University in Wales is included in the figures for the Open University (though UK-wide, listed as ‘England HEI’).

Previous NSS results are listed on the Office for Students website under “archive of data”.

Introduction

1. The purpose of this accounts direction is to inform institutions of Medr’s requirements for the format of their audited financial statements for the year 2024/25.

2. Higher education institutions in Wales remain subject to the framework of the HEFCW financial management code (FMC) (HEFCW circular W17/16HE) until Medr’s own regulatory framework comes into effect.

Changes from 2023/24 accounts direction

3. The following amendments have been made to this document since the final version for 2023/24:

a. A contents page has been added for ease of navigation.
b. Minor narrative / typographical changes and updated internet links.
c. Paragraph 10 has been added, further highlighting the importance of consistency between analysis within the published financial statements and the HESA finance record.
d. Paragraph 12 has been added to support transparency.
e. Paragraph 32 has been added, clarifying Medr’s expectation of notification and explanation where the required deadlines are not expected to be met.
f. Paragraph 33 has been added. This amends the submission date of immaterial subsidiaries, should certain requirements be met and notified to Medr.
g. Referencing and links have been updated from HEFCW to Medr as appropriate.

Accounts direction for 2024/25

4. Higher education institutions are required to follow the Statement of Recommended Practice: Accounting for Further and Higher Education 2019 (FEHE SORP), or any successors to this SORP, when preparing their financial statements. Links to the FEHE SORP and guidance on implementation of some areas can be found in the SORP area of the British Universities’ Finance Directors’ Group (BUFDG) website. If there are any inconsistencies between the requirements of the FEHE SORP and this accounts direction then this accounts direction will prevail.

5. As noted in the SORP, institutions must apply all requirements under FRS 102: the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

6. In the case of an institution which is also a company limited by guarantee, this direction is subject to the requirements of the Companies Act 2006.

7. The financial statements shall be signed by the Accountable Officer and by the Chair or one other member of the governing body appointed by that body.

8. Institutions should note that the formats of the primary accounting statements (consolidated statement of comprehensive income and expenditure, consolidated statement of changes in reserves, balance sheet, and consolidated cash flow statement) should be followed. The financial statements should follow BUFDG’s latest model financial statements where possible to promote consistency of treatment within the sector, whilst having due regard to the diversity of institutions, and clarity of presentation to users. The model can be found in the SORP area of the BUFDG website.

9. With the move by the Higher Education Statistics Agency (HESA) to the provision of open data, third party users are increasingly extracting institutional and sector data for comparison and comment from this source as opposed to the published financial statements. We would therefore expect Institutions to have due regard to HESA definitions and guidelines for categorisation within the financial statements in order to ensure that the financial statements as approved by the governing body are in line with the HESA finance record submitted subsequently.

10. Consistency between the HESA finance record and published financial statements promotes improved comparability between institutions and consistency of data used for UK sector analysis.

11. The notes to the accounts should contain analyses of income and expenditure and balance sheet items consistent with recognised good accounting practice and should be sufficiently detailed to enable users to obtain a clear understanding of how the institution is performing financially.

12. Where the accounts include material items of income or expenditure that are unlikely to recur and/or do not reflect the underlying financial performance this should be explained.

13. The financial statements should further comply with any relevant requirements of the Charities Act 2011 in so far as it relates to an institution.

14. Institutions should also:

a) Ensure that contracts for external audit provide that the external auditor must include a report to the governing body in the financial statements on whether in all material respects:

i. the financial statements give a true and fair view of the state of the higher education institution’s affairs, and of its income and expenditure, gains and losses, changes in reserves and cash flows for the year. They should take into account relevant statutory and other mandatory disclosure and accounting requirements, and Medr requirements;

ii. the financial statements have been properly prepared in accordance with UK Generally Accepted Accounting Practice, being the financial reporting standard (FRS102), the statement of recommended practice: accounting for further and higher education (FEHE SORP), and relevant legislation;

iii. funds from whatever source administered by the higher education institution for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation;

iv. the institution has applied income, where appropriate, in accordance with the Financial Management Code (FMC) (HEFCW W17/16HE) paragraph 145, and whether Funding Council grants (including grants from Medr) 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; and

v. the requirements of Medr’s accounts direction have been met.

b) Provide detailed analysis and disclosure within the financial statements of audit and other fees paid to external auditors, in accordance with Statutory Instrument SI 2008 No 489 – The Companies (Disclosure of Auditor Remuneration and Liability Limitation Agreements) Regulations 2008 and the Amendments to these Regulations encompassed within Statutory Instrument SI 2011 No 2198. This is required for those institutions to which company law applies. The Statutory Instrument can be viewed at the Office of Public Sector Information website (www.legislation.gov.uk).

c) In their management letters or reports, auditors should have regard to the specific requirement of Medr, such as compliance with increases in financial commitments thresholds, or other issues of non-compliance.

Going concern and liquidity risk

15. The members of the governing body must confirm in the annual report that the financial statements are prepared on a going concern basis. They must also confirm that they have carried out a robust assessment of the principal risks and material uncertainties facing the institution, including those that would threaten its business model, future performance, solvency or liquidity. The report must describe those risks and explain how they are being managed or mitigated.

Sustainability reporting

16. It is expected that the operating and financial report section of the financial statements should state how the institution is ensuring its sustainability, including through its strategy, quality of teaching and research, financial sustainability metrics, management of key risks including cash flow management, proposed financial commitments and material leases, and investment in estates and infrastructure. Institutions should present this information using the format agreed for the annual governance reporting template created following the Review of Governance of the Universities in Wales.

17. We would expect the institutional strategy to be clear and in alignment with other published documents.

Environmental reporting

18. Institutions must include commentary on the steps taken and planned to ensure wider sustainability of social and environmental resources. This should include, but not be limited to, a statement of the net zero target of the institution (where this has been publicly stated) and progression towards achievement of this. Areas to consider might include improvements in the efficiency of estates, energy usage, waste minimisation, resource efficiency, water usage, procurement, biodiversity, travel and reduction of other environmental impacts. We refer institutions to Welsh Government guidance in this area, which identifies prioritisation based on the classification of direct emissions (scope 1), indirect emissions (scopes 2 and 3) and Land Use, Land Use Change and Forestry. Further guidance can be found in the Standardised Carbon Emissions Framework (SCEF) and the Task Force on Climate Related Financial Disclosures.

Corporate governance and internal control

19. Institutions must include a ‘statement of corporate governance’ in its financial statements. This statement must set out a description of the institution’s corporate governance arrangements and a statement of the responsibilities of the governing body. It must explicitly relate to the period covered by the financial statements, and the period up to the date of approval of the audited financial statements.

20. Institutions must include a ‘statement of internal control’ in the financial statements. The statement of internal control relates to the institution’s arrangements for the prevention and detection of corruption, fraud, bribery and other irregularities. It must include how the principles of internal control have been applied.

21. Institutions may combine the statement of corporate governance with the statement of internal control, provided that all of the disclosures required are made. In formulating their statements, institutions should refer to best practice guidance, including guidance from the British Universities Finance Directors Group (BUFDG). Further guidance on these requirements is set out in Annex C.

22. The CUC Higher Education Code of Governance (CUC Code), which was refreshed and re-issued in 2020, recommends that institutions include in their annual audited financial statements a statement which sets out governance arrangements and confirms that they have had regard to the CUC Code in adopting those arrangements. The financial statements should include an explicit statement to either confirm that the institution has complied with all of the principles of the Code or, where there are exceptions, to provide details of how these are being addressed, including timelines.

23. The annual report must include an explicit statement that the institution has adopted the Governance Charter for Universities in Wales (the Governance Charter) based on the Review of Governance of the Universities in Wales by Gillian Camm.

24. The annual report must utilise the annual governance reporting template developed in response to the Camm review as a guide to structuring the annual report.

25. The annual report must include a statement on the institution’s compliance with the Camm review Commitment to Action, including progress on achieving full implementation where this has not yet been achieved.

Related party disclosures

26. Institutions are reminded of the disclosure requirements for related party transactions. Such transactions involving trustees, irrespective of whether or not they are undertaken on an arm’s length basis, must be disclosed with the name(s) of the transacting related party or parties. The disclosure should also include a description of the relationship between the parties (including the interest of the related party or parties in the transaction, a description of the transaction, and the amounts involved).

27. Institutions must disclose a list of trustees holding office during the year with details of appointments and resignations to the date of signing.

Remuneration of higher-paid staff

28. In line with Welsh Government requirements for openness and transparency, institutions are required to disclose:

a. the actual total remuneration of the head of institution;

b. the basic and total remuneration of the head of institution expressed as a ratio of basic and total full time equivalent staff salaries;

c. justification of the remuneration of the head of institution;

d. the remuneration of higher paid staff in bands of £5,000 from a starting point of £100,000;

e. aggregate total remuneration paid to key management personnel, together with either the number of key management personnel or a list of eligible posts; and

f. details of any compensation paid or payable to the head of institution and to staff whose annual remuneration exceeds £100,000, or a statement confirming that no compensation was payable to staff at this level in the year.

Institutions are urged to pay particular attention to the disclosure requirements for higher paid staff as detailed above, particularly in respect of the definition of ‘remuneration’ and the analysis of salary, benefits in kind and employer’s pension contributions. Further detail of the requirements is set out in Annex A for remuneration and Annex B for compensation.

Charities Act 2011

29. Institutions are advised that under the Charities Act 2011 the following information should be included in their audited financial statements and related reports:

a. the charitable status of the institution;

b. the trustees who served at any time during the financial year and until the date the financial statements were formally approved;

c. a statement that the charity has had regard to the Charity Commission’s guidance on public benefit;

d. a report on how the institution has delivered its charitable purposes for the public benefit; and

e. information about payments to or on behalf of trustees, including expenses; payments to trustees for serving as trustees (and waivers of such payments); related party transactions involving trustees.

Date of submission of audited financial statements to Medr

30. The annual report and accounts should be prepared with a 31 July year-end.

31. The final deadlines for submission to Medr and publication of audited financial statements are as follows:

	Deadline
Audited financial statements	30 November 2025
Publication on website	31 January 2026
Audited subsidiary financial statements	31 December 2025

32. Should an institution become aware that the above deadlines will not be met, Medr expect to be notified in advance with the rationale for the delay and an expected timeline, and be kept regularly updated.

33. Where subsidiary financial statements are clearly immaterial to the group audit opinion, the normal Companies House (30 April) or Charity Commission (31 May) deadline may be utilised. Institutions and their auditors must notify Medr in writing in advance of 31 December 2025 confirming that the named subsidiary(ies) will not impact the group audit opinion individually or in aggregate and they are able to utilise this dispensation. This dispensation does not apply to subsidiaries undertaking tertiary activities that would fall within the remit of Medr.

34. Financial statements should be submitted to [email protected].

35. The accounts direction is reviewed annually. This accounts direction will remain in force unless institutions are notified otherwise.

36. We recommend placing a copy of this circular and its annexes before your Finance and Audit Committees for information.

Further information

37. For further information, contact Diane Rowland ([email protected]).

Medr has completed the second of its engagement events with interested and affected parties on proposals for a new system for regulating tertiary education and training providers.

The events, each attended by upwards of 150 people, have provided an overview of what the proposals mean for the sector, the rationale behind decisions and how the sector can further help shape final regulations, which will largely come into effect from 1 August 2026.

These are available to watch again:

Medr/2025/02: Consultation on a new regulatory system including conditions of registration and funding

Medr is keen to ensure all stakeholders are well informed and engaged on the regulatory framework proposals – which include various conditions of regulation and funding, powers of intervention and the quality framework.

The first phase of consultation launched on 15 May and closes on 18 July, with all views encouraged and well-received. Any further questions can be sent to [email protected] for a response.

Medr, the body responsible for funding and regulating tertiary education and research in Wales, has been accredited by The Living Wage Foundation as a Living Wage employer.

The Living Wage commitment aims to support employees with a decent standard of living and drives up standards to tackle in-work poverty.

The accreditation means that Medr is committed to paying a real Living Wage to all employees and contracted workers.

This builds on Medr’s commitment to social partnership, having recently become one of the first bodies in Wales to reach consensus with trade unions on our well-being objectives in line with the Welsh Government’s social partnership goals.

James Owen, Medr’s Chief Operating Officer, said:

“We want to be an organisation that embraces best practice, treats staff fairly and in doing so, demonstrates leadership for the tertiary education and research sector.

“We were delighted to reach agreement with PCS, our recognised trade union, on our well-being objectives before finalising our first Strategic Plan earlier this year. We work closely with all partners, including unions, to ensure that the aims and needs of the organisation closely align with the aims and needs of our workforce.”

Medr, the body responsible for funding and overseeing tertiary education and research in Wales has today announced the appointment of James Owen as its new Chief Executive.

James will replace outgoing interim CEO Simon Pirotte, having previously been Chief Operating Officer at Medr since its inception last year.

Announcing the appointment, Medr Chair Professor Dame Julie Lydon said: “I am very pleased indeed to announce this appointment. James has excelled alongside Simon in establishing Medr and I look forward to working with him to ensure his high standards and expertise translate to Medr delivering on its ambitions to support and encourage a thriving tertiary education sector in Wales.”

Vikki Howells, Minister for Further and Higher Education said: “I welcome the appointment of Medr’s first permanent CEO. Mr Owen was successful in what I understand was a very strong field and I look forward to continuing to work with him and the wider Medr team as we deliver on our shared ambitions for learners across Wales. I also want to thank Simon Pirotte for his work as interim CEO in helping to establish Medr.”

James Owen, who will start his new role over the coming weeks, added: “I’m delighted to be appointed as CEO of Medr. I’m only too aware of the challenges and opportunities that face the sector in Wales and look forward to working closely with our partners to ensure we use the full breadth of Medr’s expertise and levers to deliver a tertiary education and research sector that is resilient and prosperous for our learners, our institutions and for Wales.”

Notes

James comes with a wealth of experience, most recently in his role as Chief Operating Officer of Medr and previously across a number of leadership roles at the heart of both Welsh and UK Government. A Chartered Fellow of the Chartered Institute of Personnel and Development, James has a proven record for getting the most from people and supporting them and those around them to reach their potential.

Mr Pirotte, who was initially appointed by Welsh Government Ministers in 2023 on a fixed term role until September, will continue in his interim role until James formally begins Chief Executive duties.

Key points

• There were 3,620 apprenticeship learning programmes started in 2024/25 Q2 (p), compared with 4,525 starts in 2023/24 Q2.
• Level 3 apprenticeships saw the largest fall compared to Q2 the previous year, a 26% drop.
• There were 205 less construction apprenticeships starts compared to Q2 the previous year, a 48% drop.
• Healthcare and Public Services apprenticeships were the most popular sector in 2024/25 Q2 (p) with 1,720 programmes started. This accounted for 48% of all apprenticeship learning programmes started.
• 62% of apprenticeship learning programmes started were by female learners in 2024/25 Q2 (p), a 3 percentage point increase from 2023/24 Q2.
• 42% of apprenticeship learning programmes started were by learners aged between 25 and 39 in 2024/25 Q2 (p), compared to 38% in Q2 for the previous year.
• 15% of apprenticeship learning programmes started were by learners with ethnic minority backgrounds in 2024/25 Q2 (p), a 3 percentage point increase from 2023/24 Q2.
• 13% of apprenticeship learning programmes started in 2024/25 Q2 (p) were by learners identifying as having a disability and/or learning difficulty, a 2 percentage point increase from 2023/24 Q2.
• There have been 73,795 apprenticeship starts since Q4 2020/21, as part of progress towards Welsh Government’s target of 100,000 apprenticeships.
• The Programme for Government contained a target to create 125,000 all-age apprenticeships. During the Economy, Trade and Rural Affairs Committee meeting on 26 June 2024, the Cabinet Secretary for Economy, Energy and Welsh Language agreed a new target of 100,000 all-age apprenticeships to maintain the previous Senedd term’s target of 100,000.

Note: Figures with (p) are provisional.

The Welsh Government financial year budget for apprenticeships in 2023-24 was £139m and £144m in 2024-25 (Source: Final Budget 2023 to 2024, Final Budget 2024 to 2025).

Previously, there was additional funding for apprenticeships from the European Social Fund (over £40m in 2023-24 Draft Budget 2025 to 2026: evidence to the Senedd Economy, Trade, and Rural Affairs Committee). This ceased by the 2024-2025 financial year.

Apprenticeship learning programmes started: interactive dashboard

Closing date: Monday 16 June 2025

The People and Culture Committee is responsible for the oversight of Medr’s People and Culture Strategy, organisational development, well-being, and equality and diversity.

The Committee will ensure that the Strategy is aligned to Medr’s vision and values, and it will monitor and advise the Medr Board on the performance of the organisation against the Strategy.

We are looking for independent members with a passion for people development and a diversity of experience in building organisational culture, capacity and capability to bring an independent, external perspective to the Committee’s work.

Ideally you will have experience/background in one or more of the following areas:

• the development and implementation of a People and Culture Strategy
• people and leadership development
• organisational development and change management
• pay and remuneration
• working in social partnership with trade unions

Full details, and how to apply Equality monitoring form