Charity Number: SC029163

UNIVERSITIES

FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 July 2020

Contents Page

Report of the Members 1

Report of the independent auditors to the Members 10

Statement of financial activities 13

Balance sheet 14

Notes to the financial statements 15

Universities Scotland: Financial statements for the year ended 31 July 2020

Report of the members for the year ended 31 July 2020

The members present their report and the financial statements for Universities Scotland for the year ended 31 July 2020. Universities Scotland is a registered Charity (no SC029163) based in . The charity represents the collective interests of all Scottish higher education institutions to the Scottish Government, the Scottish Parliament, the Scottish Further and Higher Education Funding Council (also known as the or SFC) and a wider network of stakeholders. While acting autonomously in matters relating to devolved policy, Universities Scotland also forms part of the UK-wide representative body Universities UK.

The Members of Universities Scotland (trustees of the charity) appointed for the year from 1 August 2019 to 31 July 2020 were as follows:

Principal, University of Principal, University of Abertay 1 Principal, 2 Principal, University of Dundee Principal, Principal, Edinburgh Napier University Principal, University of Principal, Heriot-Watt University Principal, Glasgow Caledonian University 3 Director, 4 Director, Glasgow School of Art 5 Principal, Queen Margaret University Edinburgh Principal, The Principal, The Royal Conservatoire of Scotland Principal, University of Principal and Chief Executive, (SRUC) Scotland’s Rural College Principal, University of Principal, University of Strathclyde Principal, University of the West of Scotland 6 Principal, University of the Highlands and Islands Director, The in Scotland

1 concluded in post 08 November 2019 2 commenced in post 01 February 2020 3 concluded in post 24 May 2020 4 commenced in post 25 May 2020 5 commenced in post 01 October 2019* 6 commenced in post 01 August 2019

(* commenced in post for Queen Margaret University on 01 October 2019, Interim Principal in post from 01 August 2019 to 30 September was .)

No Member of Universities Scotland had a beneficial interest in any contract with the charity. Members are the Vice-Chancellors, Directors or Principals of the member institutions.

Universities Scotland: Financial statements for the year ended 31 July 2020 1

Report of the members for the year ended 31 July 2020 - continued

Convener to 31 July 2020 from 01 August 2020

Vice Convener to 31 July 2020 from 01 August 2020

Director

Principal office Holyrood Park 106 Holyrood Road Edinburgh EH8 8AS

Bankers National Westminster Bank plc PO Box 83 Tavistock House Tavistock Square London WC1H 9XA

Solicitors Anderson Strathern 1 Rutland Court Edinburgh EH3 8EY

Auditors Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

2 Universities Scotland: Financial statements for the year ended 31 July 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Universities Scotland is a membership body made up of the Principals and Vice-Chancellors of Scottish universities and the Principals or Directors of small specialist higher education institutions in Scotland. Membership is voluntary, but all 18 Scottish higher education institutions, and the Open University in Scotland, are current members.

The work of Universities Scotland is guided by meetings of Members, which are held five times each year. Members delegate responsibility to a number of standing committees. In 2019–20 these were:

 Learning and Teaching Committee  Research and Knowledge Exchange Committee  Secretaries’ Group  Funding Policy Group  International Committee

Each group works to a defined agenda within its terms of reference and reports on progress to meetings of Members. Other sub groups and working parties are set up as required.

Meetings of Members of Universities Scotland The meeting of Members is the decision-making body. The executive heads of all 19 higher education institutions in receipt of main grant from the Scottish Funding Council are the Members. The Chief Executive of Universities UK and the Convener of the Universities Scotland Secretaries’ Group may also attend meetings of Members.

The Convener and Vice Convener are elected by and from the Members in a ballot to serve for a term of two academic years and are eligible for re-election for one further term of office at the end of that period.

The Convener, Vice Convener and the Director of Universities Scotland form the Executive Committee for the charity. The Executive Committee develop advice for the full membership and carry out executive action on behalf of the membership between meetings. At each meeting a report is presented of the activities of the Executive group to the membership.

Membership subscriptions All Members renew their subscriptions annually for the year from 1 August. Universities Scotland Main Committee decides annually whether to vary the subscription rate which is varied by a fixed percentage applied to each member.

New member induction Universities Scotland is in regular contact with all members and gives particular attention to the integration of new members and to providing these members with appropriate advice and guidance on specific responsibilities. In most cases new members of Universities Scotland are also new members of Universities UK, and benefit from the induction arrangements of Universities UK.

Management and staffing The employees of Universities Scotland are based in Edinburgh, in leased premises at Holyrood Park House.

The Director has responsibility for planning and developing the services and strategies for Universities Scotland within clear policies and protocols set by the Board. He ensures that the team of 15 staff members provides the skills and expertise necessary to run a successful professional membership organisation. Staff are involved in a wide range of activities to promote members’ interests including policy research and development, lobbying of policymakers, media work, facilitation of dialogue and sharing of best practice within the sector and promotion of Scottish institutions (especially for an international audience) as attractive places to study and to do research.

Universities Scotland: Financial statements for the year ended 31 July 2020 3

Report of the members for the year ended 31 July 2020 - continued

Arrangements for setting pay and remuneration Member input and support to the work of Universities Scotland is on a non-remunerated basis.

The pay and remuneration of key executive management (the Director) is set by a Remuneration Committee of Universities UK, which comprises all its Executive Committee. The Convener of Universities Scotland sits on the Remuneration Committee as Universities UK’s Vice President for Scotland and a member of Universities UK’s Executive Committee.

Risk management The Executive Committee of Universities Scotland (Convener, Vice-Convener and Director) reviews the organisation’s exposure to business, operational and financial risks. Key processes include the planning and budgeting systems, which involve draft strategic and operational plans and draft budgets being considered initially by the Executive Committee prior to their being submitted for approval to a meeting of Members. These bodies also review performance against the plan and budget. A business continuity plan has been formulated for dealing with an emergency. Financial control is secured through the administration of Universities Scotland’s finances by Universities UK. Further details are given below in the Financial Review under Principal risks and uncertainties. The Members are satisfied that risks to the organisation have been adequately reviewed and addressed.

Restricted funds International activities

The Scottish Funding Council continues to provide ring-fenced funding to Universities Scotland for the purpose of supporting the sector in its international ambitions and to remain a competitive and attractive study destination in the global higher education market. This funding has been provided to US to varying levels over the years the latest grant was set at £75k per annum covering a two-year period from 2017– 18 to 2019–20.

Scottish Government has extended its grant funding for a further one-year, which supports the Connected Scotland partnership and those projects and events delivered as part of it focused on creating further opportunities therefore adding value to the international aspirations of the Scottish sector.

Public benefit The Members’ confirm that they have complied with the Charities and Trustee Investment (Scotland) Act 2005 and provide public benefit through the charity’s activities.

Universities Scotland’s work in support of the higher education sector is first and foremost dedicated to the charitable purpose of the advancement of education. Through the support and advocacy we provide to the Scottish universities we also contribute to their fulfilment of their wider charitable purposes including the advancement of health; the advancement of the arts, heritage, culture or science; the promotion of equality and diversity; and the advancement of environmental protection or improvement. Universities Scotland’s work is entirely committed to the delivery of public benefit through its support for the higher education sector’s contribution to public well-being. Members derive no individual private benefit from Universities Scotland.

4 Universities Scotland: Financial statements for the year ended 31 July 2020

UNIVERSITIES SCOTLAND ACHIEVEMENTS 2019–20

2019–20 was one of the most unpredictable years we have faced. In the first half of the year our campaigning was disrupted by a snap general election. In the second half of the year Universities Scotland, in common with the rest of the world, had to adapt abruptly to new priorities and ways of working as a result of the coronavirus pandemic.

Throughout this time we have maintained a high level of service to members.

Pre-COVID, our achievements for members included:

 A Scottish Government Spending Review outcome ahead of member expectations, with modest real-terms increases in core grants. This built on a strongly-argued and well-evidenced case with a new narrative aligned to the National Performance Framework, a shared and highly visible platform with staff and student unions for the need for investment (despite the industrial action) and intensive management of political relations.  Significant investment of time in Audit Scotland’s second review of HE funding, as published in September 2019, and media work and political engagement to ensure high awareness.  Policy-making and evidence-building support for the development of the National Articulation Forum’s report (which was then launched in August with support from the Minister & SFC Chief Executive).  Launch of the care experience guarantee in regard to admissions with the First Minister.  Securing a positive decision on the fees status of EU students for 2020–21 entry.  Progress, with government and key stakeholders, in developing a coherent response to the mental health and wellbeing challenges faced by students.  Launch of a shared statement of common cause with SCDI to signal HE-business partnerships to accelerate economic growth.  Substantive agreement of a statement of commitment to addressing the climate emergency.  A governance effectiveness review that was, in general, highly supportive of US.

Priorities changed radically in mid-March as the scale of the coronavirus pandemic escalated.

Achievements since the pandemic include:

 On 3 April, presenting to Scottish Government an evidenced case for the sector’s contribution to the recovery and the need for support for Scottish HEIs in the light of the emergency.  Building with SFC an agreed methodology for appraising the financial impact, leading to publication on 29 April of a hard-hitting report by SFC with agreed quantification of the challenge.  Coordination of the sector’s contribution to the national effort under the campaign #WeAreTogether  On 6 May, an award of £75m additional funding for research from SG.  At the end of May, submission of evidence and argument to the Advisory Group on Economic Recovery which made a significant impact on its recommendations for an ‘education-led recovery’.  Publication in June of the sector’s overall narrative on our intended contribution to the recovery, building on work to develop ideas with members.  Further work in July to develop the sector’s ideas in greater substance, to influence the SFC review of coherent provision and sustainability.  Substantial and detailed work to influence SG guidance on the safe resumption of activities on campus.

As an organisation, Universities Scotland pivoted fast to adapt to the lockdown and increase the service we provide to members recognising the unprecedented and high-risk environment.

New member services include:

 Adoption of MSTeams and Zoom channels from the outset to enable productive virtual meetings.  Significantly increased member communications. The issuing of a daily email which began on 20 March to provide policy and political updates related to the pandemic. Followed by 73 near-daily updates issued to offer a timely update on face-paced policy developments in Scotland and the UK.

Universities Scotland: Financial statements for the year ended 31 July 2020 5

Report of the members for the year ended 31 July 2020 - continued

 Additional virtual Main Committee meetings held to coordinate our approach to the financial crisis facing the sector. In the period March-August, five Main Committee meetings have been held to ensure an inclusive approach to sector level positions and approach.  Increased frequency of shorter, sharper policy committee meetings running fortnightly with RKEC and LTC.

The disrupted pattern of the year meant that some projects that were conceived to meet priorities as they appeared at the beginning of the year became irrelevant or had to be rescheduled. This included planned campaigning on teaching funding and skills development as part of the SR2019 campaign: shelved because of the snap general election and influence on teaching/skills development issues subsequently integrated into broader work on the sector’s contribution to the nation’s post-coronavirus recovery. The intended development of a new Scottish framework for student misconduct, informed by best practice in dealing with gender-based violence, has been postponed to 2020/21 because of the reprioritisation of resources towards coronavirus issues. These changes have contributed to the 2019/20 surplus since they involved expenditure that has been cancelled or deferred.

FINANCIAL REVIEW

Review of position at the end of the year The statement of financial activities for the year is set out on page 13 and the balance sheet on page 14 of the financial statements.

Income and expenditure for the year and position at the end of the year are summarised below.

Unrestricted Restricted Total Total Activities Activities 2020 2019 £’000 £’000 £’000 £’000

Income 1,037 117 1,154 1,153 Expenditure (1,003) (120) (1,123) (1,091) Net movement in funds 34 (3) 31 62 Funds brought forward 288 108 396 334 Funds carried forward 322 105 427 396

Universities Scotland performed in line with expectations and reports a surplus on unrestricted activities in line with budget at £34,000.

Principal funding source Membership subscriptions and a grant from Universities UK out of its subscriptions provides most (92%) of the unrestricted income. The balance comes mainly from licence fees for occupying spare desk space and other minor reimbursed expenditure. Income is used principally to support charitable activities. Universities Scotland does not fundraise from the public and is therefore not registered with the Fundraising Regulator.

Significant events affecting financial performance and position There were no significant events affecting performance or position in the year.

Fixed assets The changes to tangible fixed assets during the year are shown in note 7 to the financial statements.

Investment policy Universities Scotland plans strategically over a three-year time horizon and budgets annually to expend substantially all anticipated unrestricted income, subject to retaining a prudent amount in reserves. It has no permanent endowment and provides for capital expenditure from unrestricted reserves.

Universities Scotland has no investments. Its funds are administered on its behalf by Universities UK.

6 Universities Scotland: Financial statements for the year ended 31 July 2020

Principal risks and uncertainties The Members keep under review the strategic and operational risks facing the organisation together with the programmes and activities which help manage those risks effectively.

As a membership organisation, Universities Scotland’s principal risk is failing to respond adequately to developments in higher education policy and funding or to its members’ needs, which would risk damage to its reputation and influence and a possible loss of members and subscription revenue. Horizon scanning and member feedback mechanisms are in place to minimise and mitigate this risk and other external financial and operational risks and uncertainties.

A risk register is maintained of all significant risks, including general operational and financial risks as well as the principal risk identified above. These are regularly reviewed and updated. Suitable risk mitigation strategies are in place and are adapted according to changing needs.

Reserves policy The trustees have reviewed the requirements for free reserves (unrestricted reserves less any amounts designated or otherwise committed) in the light of the principal strategic and operating risks to the organisation, as outlined above. The policy to maintain a modest reserve sufficient to cover expenditure and to ensure organisational resilience is still considered appropriate. Since most of the organisation’s income is derived, directly or indirectly, from membership subscriptions, the Members do not consider it appropriate to carry reserves beyond a level regarded as a prudent minimum.

Performance against Universities UK’s group reserves policy

2020 2019 £ £

Total unrestricted reserves 322,140 288,167 Committed to fixed assets (48,597) (65,785) Free reserves 273,543 222,382 Total unrestricted expenditure 1,003,273 976,788 Months of unrestricted expenditure in free reserves 3.3 2.7 Months (target) 4.0 – 6.0 4.0 – 6.0

During the financial year Universities Scotland increased unrestricted reserves by 0.6 months.

PLANS FOR THE FUTURE

Strategic Plan and Operational Plan

2020–21 is the final year of the current strategic planning period. We continue to work within strategic priorities of:

 Ambition  The common good  Trust  New ways of working.

2020–21 is also the year in which we will develop our new Strategic Plan. This gives us an opportunity for fresh thinking about how US can make the best possible contribution to the sector’s success in a potentially radically-changed environment, as we look beyond the next Scottish Parliament elections.

Universities Scotland: Financial statements for the year ended 31 July 2020 7

Report of the members for the year ended 31 July 2020 - continued

Overall priorities

At the time of writing, there is a particular focus on defining the sector’s contribution to economic, social and cultural recovery from the coronavirus pandemic, and getting government support for that.

This includes action to:

 Develop the sector’s proposals for ways in which it can support recovery, and how government and its agencies can enable that  Develop the sector’s proposals for changes in how it is configured to meet changed circumstances, at institutions’ own initiative and to inform the SFC’s review of coherent and sustainable provision  Develop the sector’s proposals for an improved funding and accountability regime, to inform the SFC’s review of coherent and sustainable provision  Develop US as a forum in which these discussions can happen  Earn political, governmental and stakeholder support for the sector’s positions across these issues.

However, concentration post-COVID issues should not displace other high priorities for 2020–21 to:

 Influence political manifestos for the 2021 Scottish Parliament elections  Influence policy development by UK Government and its agencies that impacts on Scottish higher education  Influence the international promotion of Scottish higher education  Position higher education as a force for good in addressing the climate emergency  Demonstrate that higher education leadership is committed to further progress on equalities and welfare issues.

Many of these priorities are inseparable from each other: the action we take in response to the pandemic will have a wider impact on our other priorities; and in turn these wider priorities are an important part of making the case for higher education’s relevance in a changed environment.

 Support and promoting the sector’s response to equalities and student welfare issues  Influence manifestos for the 2021 Scottish Parliament elections, so that they include policies to promote the success of Scottish higher education in accordance with members’ visions  Support UK-wide higher education frameworks and ensure they are aligned with devolved interests  Influence the Post-16 Review in England and its implementation, so that it supports members’ success  Influence the Scottish regulatory environment so that it supports members’ success.

Within these continuing priorities, fresh challenges will include dealing with whatever UK-wide Brexit outcome we face and working to build wider political support for a higher education contribution that goes beyond its narrow economic value.

8 Universities Scotland: Financial statements for the year ended 31 July 2020

MEMBERS’ RESPONSIBILITIES IN RELATION TO THE ACCOUNTS

The Members are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Law applicable to Charities in Scotland requires the Members to prepare accounts for each financial period which give a true and fair view of the state of affairs of the organisation and of the excess of expenditure over income for the period. In preparing those accounts, generally accepted accounting practice requires that the Members:

 select suitable accounting policies and then apply them consistently;  observe the methods and principles in the Charities SORP;  make judgements and estimates that are reasonable and prudent;  state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the organisation will continue its activities.

The Members are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the organisation and which enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the organisation and hence for taking reasonable steps for the prevention and detection fraud and other irregularities.

Auditor Haysmacintyre LLP has indicated its willingness to continue as auditor, subject to re-appointment at the next Universities UK annual general meeting.

Approved by the Members and signed on behalf of the Members on 28 October 2020.

Member and Convener Director

Universities Scotland: Financial statements for the year ended 31 July 2020 9

Independent auditor’s report on the financial statements for the year ended 31 July 2020

Opinion We have audited the financial statements of Universities Scotland for the year ended 31 July 2020, which comprise the Statement of Financial Activities, the Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the charitable company’s affairs as at 31 July 2020 and of the charitable company’s net movement in funds, including the income and expenditure, for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of trustees for the financial statements As explained more fully in the trustees’ responsibilities statement set out on page 9, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

10 Universities Scotland: Financial statements for the year ended 31 July 2020

Independent auditor’s report to the Members of Universities Scotland

Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

• the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or • the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit:

 the information given in the Trustees’ Annual Report (which incorporates the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and  the Trustees’ Annual Report (which incorporates the directors’ report) has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charity Accounts (Scotland) Regulations (as amended) require us to report to you if, in our opinion:

• adequate accounting records have not been kept by the charitable company or; • the charitable company financial statements are not in agreement with the accounting records and returns; or • certain disclosures of trustees’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit

Universities Scotland: Financial statements for the year ended 31 July 2020 11

Independent auditor’s report on the financial statements for the year ended 31 July 2020

Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

, Senior Statutory Auditor 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditor London EC4R 1AG Date: 3 November 2020

Haysmacintyre LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

12 Universities Scotland: Financial statements for the year ended 31 July 2020

Statement of financial activities for the year ended 31 July 2020

Unrestricted Restricted Total Total Funds Funds 2020 2019 £ £ £ £ Income and expenditure Notes

Income from: Income from charitable activities . Subscriptions from institutions 2 630,817 — 630,817 624,571 . Grant income 3 319,455 116,667 436,122 449,149

Raising funds 4 86,974 — 86,974 79,289 Total 1,037,246 116,667 1,153,913 1,153,009

Expenditure on: Charitable activities . Activities for members 944,215 120,136 1,064,351 1,034,785

Raising funds 59,058 — 59,058 55,798 Total 5 1,003,273 120,136 1,123,409 1,090,583

Net movement in funds 33,973 (3,469) 30,504 62,426

Total funds brought forward at 1 August 288,167 108,152 396,319 333,893 Total funds carried forward at 31 10 July 322,140 104,683 426,823 396,319

All items shown above relate to continuing activities.

There are no differences between the amounts shown above and the historic cost equivalents.

The notes on pages 15 to 23 form part of these financial statements.

Universities Scotland: Financial statements for the year ended 31 July 2020 13

Balance sheet at 31 July 2020

Notes 2020 2019 £ £

FIXED ASSETS Intangible fixed assets 3,830 7,660 Tangible fixed assets 44,767 58,125 7 48,597 65,785

CURRENT ASSETS Debtors 8 413,097 362,387

CURRENT LIABILITIES Creditors: amounts falling due within one year 9 (34,871) (31,853)

NET CURRENT ASSETS 378,226 330,534

TOTAL NET ASSETS 426,823 396,319

FUNDS Restricted funds 104,683 108,152 Unrestricted funds 322,140 288,167 10 426,823 396,319

The notes on pages 15 to 23 form part of these financial statements.

The financial statements on pages 13 to 23 were approved by the Members and authorised for issue on 28 October 2020.

Signed on their behalf by:

Member Director

14 Universities Scotland: Financial statements for the year ended 31 July 2020

Notes to the financial statements 31 July 2020

1. Statement of accounting policies Basis of preparation Under the terms of the Agreement establishing the organisation (formally subscribed by member institutions in 1994/95) financial statements must be prepared in accordance with the Charities Accounts (Scotland) Regulations 2006 and the Charities SORP 2015. The charity is unincorporated and meets the definition of a public benefit entity under FRS 102.

The following accounting policies have been applied consistently in dealing with items which are considered material to the financial statements.

a. Critical accounting judgements and estimates In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the charities’ accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historic experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

b. Preparation of the accounts on a going concern basis The Members consider that there are no material uncertainties about the charity’s ability to continue as a going concern. The Members have considered the impact of the Covid-19 pandemic, reviewed financial position, reserves levels and future plans and this has given the Members confidence that the charity remains a going concern into the future.

c. Income  Income from grants and contracts (including government grants) is recognised when there is evidence of entitlement, receipt is probable and its amount can be measured reliably.  Subscriptions are recognised over the period to which they relate.  Other income is recognised on an accruals basis.

d. Expenditure All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to that category. Where costs cannot be directly attributed to a particular heading, they have been allocated to activities on a basis consistent with the use of the resource.

e. Value Added Tax Irrecoverable Value Added Tax is charged to the statement of financial activities as it is incurred.

f. Fixed assets Individual assets with a cost in excess of £2,500 are capitalised. Depreciation is applied to write- off tangible fixed assets on a straight-line basis as follows:

Furniture and equipment Over 4 years Office technology (including website development) Over 3 years Leasehold improvements Over the life of the lease

g. Financial instruments The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Liabilities are recognised on an accruals basis.

h. Cash flow statement Universities Scotland is not required to prepare a cash flow statement as is does not hold cash or have a bank account.

Universities Scotland: Financial statements for the year ended 31 July 2020 15

Notes to the financial statements (continued)

i. Creditors and provisions Creditors and provisions are recognised where the charity had a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

j. Debtors Short term debtors are measured at transaction price, less any impairment.

k. Operating leases Rental costs under operating leases are charged to the statement of financial activities in equal amounts over the period of the lease

l. Employee benefits Staff are employed by Universities UK and costs recharged to Universities Scotland. Detail of pension schemes and employee benefits are available in the financial statements of Universities UK.

2. Subscriptions from institutions Subscriptions are for the year from 1 August to 31 July, renewed annually, and are levied on institutions to contribute to the running costs of Universities Scotland using a formula prescribed in the Agreement. Universities Scotland Main Committee decides annually whether to vary the subscription rate which is varied by a fixed percentage applied to each member.

3. Grant income

Unrestricted Restricted Total Unrestricted Restricted Total Funds Funds 2020 Funds Funds 2019 £ £ £ £ £ £

Universities UK 319,455 — 319,455 319,455 — 319,455 Scottish Funding Council* — 75,000 75,000 — 75,000 75,000 Scottish Government* — 41,667 41,667 — 53,430 53,430 British Council* — — — — 1,264 1,264

319,455 116,667 436,122 319,455 129,694 449,149

* funds received from government or government agencies.

4. Raising funds Comprises income under licence agreements for use of surplus desk space, and various reimbursed costs.

5. Total expenditure

Direct Support Total Direct Support Total costs costs 2020 costs costs 2019 £ £ £ £ £ £

Raising funds 53,054 6,004 59,058 50,142 5,656 55,798

Charitable activities Activities for members - Scotland 685,666 258,549 944,215 687,074 243,807 930,881 - International 113,867 6,269 120,136 97,904 6,000 103,904 Total charitable 799,533 264,818 1,064,351 784,878 249,807 1,034,785

Total expenditure 852,587 270,822 1,123,409 835,120 255,463 1,090,583

16 Universities Scotland: Financial statements for the year ended 31 July 2020

5. Total expenditure (continued)

Support cost allocations

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e Total

e

c

s

c

i

n ern 2020

m

v

na

o

i £

Pre £ G £ Depre £ F IT

Raising funds 3,525 702 599 1,178 6,004

Charitable activities Scotland 149,130 30,953 26,495 51,971 258,549 International 6,269 — — — 6,269 Total support costs 158,924 31,655 27,094 53,149 270,822

e

on

c

i

HR

t

n

s

,

a

ia

e Total

e

c

s

c

i

n

ern 2019

m

v

na

o

i £

Pre £ G £ Depre £ F IT

Raising funds 3,267 417 821 1,151 5,656

Charitable activities Scotland 138,294 18,408 36,243 50,862 243,807 International 6,000 — — — 6,000 Total support costs 147,561 18,825 37,064 52,013 255,463

Governance cost analysis 2020 2019 £ £

External audit 3,600 3,300 Other professional fees 12,000 — Staff and other costs 16,055 15,525 31,655 18,825

Total expenditure also includes the following operating lease rentals:

Land and buildings 131,042 120,814 Office equipment 3,631 3,575

Universities Scotland: Financial statements for the year ended 31 July 2020 17

Notes to the financial statements (continued)

6. Trustee and employee information Trustee information No remuneration or expenses were paid to trustees during the year (2019: none).

Employee information Employee costs were as follows: 2020 2019 £ £

Salaries including benefits in kind 559,029 580,783 Social security costs 58,591 55,513 Pension contributions 137,201 109,834 754,821 746,220

Average staff numbers analysed by category were: 2020 2019

Direct charitable activity 13.0 13.0 Support 2.0 2.0 15.0 15.0

The number of employees whose emoluments for the year fell within the following band in excess of £60,000 was:

2020 2019

£60,001 - £70,000 1 1 £90,001 - £100,000 1 1

The total employer pension contributions for the higher paid staff above is £32,577 (2019: £28,362).

The total employee benefits of the Chief Executive who is considered to be key management personnel (in addition to trustees) was:

2020 2019 £ £

Salary including benefits in kind 92,869 90,933 Social security costs 10,390 10,340 Pension contributions 19,323 16,823 122,582 118,096

18 Universities Scotland: Financial statements for the year ended 31 July 2020

7. Fixed assets Intangibles: Tangibles: Websites Lease Equipment Furniture Total £ £ £ £ £ Cost At 1 August 2019 31,448 160,075 34,029 42,575 268,127 Additions — — 9,906 — 9,906 At 31 July 2020 31,448 160,075 43,935 42,575 278,033

Depreciation At 1 August 2019 23,788 102,830 34,029 41,695 202,342 Charge for the year 3,830 19,082 3,302 880 27,094 At 31 July 2020 27,618 121,912 37,331 42,575 229,436

Net book value At 31 July 2020 3,830 38,163 6,604 — 48,597 At 31 July 2019 7,660 57,245 — 880 65,785

8. Debtors 2020 2019 £ £

Receivable from Universities UK* 379,108 346,987 Other debtors — 1,164 Prepayments and accrued income 33,989 14,236 413,097 362,387

*The amount receivable from Universities UK represents the cash held by Universities UK on behalf of Universities Scotland.

9. Creditors: amounts falling due within one year 2020 2019 £ £

Trade creditors 22,299 17,831 Accruals and deferred income 12,572 14,022 34,871 31,853

Universities Scotland: Financial statements for the year ended 31 July 2020 19

Notes to the financial statements (continued)

10. Movement in funds Transfers At 1 August Incoming Resources between At 31 July 2019 Resources Expended funds 2020 £ £ £ £ £

Unrestricted funds General reserve 288,167 1,037,246 (1,003,273) — 322,140

Restricted funds International activities  Scottish Funding Council 94,565 75,000 (69,422) — 100,143  Scottish Government 13,587 41,667 (50,714) 4,540 108,152 116,667 (120,136) — 104,683 Total funds 396,319 1,153,913 (1,123,409) — 426,823

Transfers At 1 August Incoming Resources between At 31 July 2018 Resources Expended funds 2019 £ £ £ £ £

Unrestricted funds General reserve 241,640 1,023,315 (976,788) — 288,167

Restricted funds International activities  Scottish Funding Council 85,791 75,000 (66,226) — 94,565  Scottish Government — 50,000 (36,413) — 13,587  British Council — 1,264 (1,264) — —  Gender based violence 6,462 3,430 (9,892) — — 92,253 129,694 (113,795) — 108,152 Total funds 333,893 1,153,009 (1,090,583) — 396,319

Restricted funds

International activities

Scottish Funding Council Funding to support the sector in improving its position in the global higher education market and identifying opportunities to improve Scotland’s contribution to and impact on international higher education more generally.

Scottish Government Funding for a post which supports the Connected Scotland partnership and those projects delivered as part of it focused on adding value to the international aspirations of the Scottish sector.

British Council Funding towards a Scottish presence at their international Going Global conference in Berlin enabling Scottish HEIs to connect with their alumni base.

20 Universities Scotland: Financial statements for the year ended 31 July 2020

Restricted funds (continued)

Gender based violence Funds raised from Scottish Government to support the development phase (design and testing) of support cards for the issue of gender-based violence in higher (& further education), a project led by Universities Scotland.

11. Allocation of net assets between funds Restricted Unrestricted 2020 funds funds Total £ £ £ Fixed assets — 48,597 48,597 Current assets 118,630 294,467 413,097 Current liabilities (13,947) (20,924) (34,871) 104,683 322,140 426,823

Restricted Unrestricted 2019 funds funds Total £ £ £ Fixed assets — 65,785 65,785 Current assets 109,582 252,805 362,387 Current liabilities (1,430) (30,423) (31,853) 108,152 288,167 396,319

Universities Scotland: Financial statements for the year ended 31 July 2020 21

Notes to the financial statements (continued)

12. Operating lease commitments

Universities Scotland had the following future minimum lease payments under non-cancellable operating leases for each of the following periods:

Total Total 2020 2019 £ £ Land and buildings: . Within one year 126,258 120,836 . Between one and five years 116,227 232,071

Office equipment: . Within one year 3,094 2,222 . Between one and five years 4,155 431

249,734 355,560

13. Retirement benefits Staff are employed by Universities UK and costs recharged to Universities Scotland. Universities UK participates in two pension schemes: the Universities Superannuation Scheme (USS), and the Superannuation Arrangements of the University of London (SAUL). Further details of these schemes are available in the financial statements of Universities UK.

14. Financial instruments

Total Total 2020 2019 £ £

Financial assets measured at amortised cost — 268 Financial liabilities measured at amortised cost 30,187 26,021

Financial assets measured at amortised cost comprise trade debtors.

Financial liabilities measure at amortised cost are creditors.

22 Universities Scotland: Financial statements for the year ended 31 July 2020

15. Income and expenditure by fund

Income and expenditure Unrestricted Unrestricted Restricted Restricted Funds Funds Funds Funds Total Total 2020 2019 2020 2019 2020 2019 Note £ £ £ £ £ £ Income from:

Income from charitable activities Subscriptions from institutions 2 630,817 624,571 — — 630,817 624,571 Grant income 3 319,455 319,455 116,667 129,694 436,122 449,149

Raising funds 4 86,974 79,289 — — 86,974 79,289 Total 1,037,246 1,023,315 116,667 129,694 1,153,913 1,153,009

Expenditure on:

Charitable activities Activities for members 944,215 920,990 120,136 113,795 1,064,351 1,034,785

Raising funds 59,058 55,798 — — 59,058 55,798 Total 5 1,003,273 976,788 120,136 113,795 1,123,409 1,090,583

Net movements in funds 33,973 46,527 (3,469) 15,899 30,504 62,426

Total funds at 1 August 288,167 241,640 108,152 92,253 396,319 333,893

Total funds at 31 July 322,140 288,167 104,683 108,152 426,823 396,319

Universities Scotland: Financial statements for the year ended 31 July 2020 23