UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
TUESDAY, 11 DECEMBER 2018
THE FOLLOWING PAPERS HAVE BEEN WITHHELD ON THE GROUNDS OF CONFIDENTIALITY:
Item 5.1 Borrowing and Medium Term Financial Strategy
Item 5.2 Science Teaching Hub Item 6 Student Recruitment
Item 9 Update on REF
Item 11.5 Going Concern Report
Item 12.1 Korea Campus Update
Item 12.2 Proposed TNE Project in Sri Lanka - Update
Item 12.3 Qatar Campus Update
Item 15.4 Strategic Investment for Academic Growth
Item 15.8 Development Trust Activity
Item 15.9 Health, Wellbeing and Safety Report
Item 15.10 Financial Management Report
THE FOLLOWING PAPERS HAVE BEEN REDACTED ON THE GROUNDS OF CONFIDENTIALITY:
Item 11.3 Audit Committee Annual Report
There will be a meeting of the UNIVERSITY COURT on Tuesday 11 December 2018 at 9am to 3pm in the Linklater Rooms, Elphinstone Hall.
BUSINESS
DECLARATION OF INTEREST: Any member or individual in attendance (including officers) who has a clear interest in a matter on the agenda must declare that interest at the meeting.
BUSINESS FOR DISCUSSION
1 9am DECLARATION OF INTEREST AND CONSIDERATION OF FORMAL BUSINESS
2 9am MINUTES Note: An Action Log is enclosed with the minutes.
3 9.05am REPORT FROM THE PRINCIPAL
4 9.15am INSTITUTIONAL STRATEGY: NEXT STEPS Presentation from the Principal
5 9.45am CAPITAL INVESTMENT AND FINANCIAL STRATEGY (Strictly Confidential) 5.1 Borrowing and Medium Term Financial Strategy 5.2 Science Teaching Hub
6 10.30am STUDENT RECRUITMENT 2018/19 (Strictly Confidential)
11.00am Coffee
7 11.15am PROCESS FOR THE APPOINTMENT OF THE SENIOR GOVERNOR (Strictly Confidential)
8 12.00pm ORAL REPORT FROM EXTRAORDINARY MEETING OF REMUNERATION COMMITTEE
9 12.15pm UPDATE ON REF (Strictly Confidential)
10 12.30pm KEY PERFORMANCE INDICATORS AND RISK REGISTER
10.1 Key Performance Indicators Report for 2017/18 10.2 Risk Management Update (Strictly Confidential)
1.00pm Lunch
11 1.30pm FINANCE AND ANNUAL REPORTS
11.1 Annual Report and Accounts for Year End 31 July 2018 11.2 External Auditors’ Report & Representation Letter 11.3 Audit Committee Annual Report 11.4 Internal Auditors’ Annual Report 11.5 Going Concern Report (Strictly Confidential) 11.6 Update on USS
12 2.15pm INTERNATIONALISATION (Strictly Confidential)
12.1 Korea Campus Update 12.2 Proposed TNE Project in Sri Lanka – Update 12.3 Qatar Campus Update
BUSINESS NOT PROPOSED FOR DISCUSSION
MEMBERS ARE REMINDED THAT THEY CAN RAISE THESE ITEMS FOR DISCUSSION AND TO DO SO BY ADVISING THE CLERK ONE CLEAR WORKING DAY IN ADVANCE OF THE MEETING
13 OPERATING BOARD REPORT
14 REPORTS FROM COURT COMMITTEES AND JOINT COMMITTEES OF COURT AND SENATE
15 ROUTINE BUSINESS NOT PROPOSED FOR DISCUSSION
16 DATE OF NEXT MEETING: Tuesday 26 March 2018 UNIVERSITY COURT
11 December 2018
DECLARATION OF INTEREST AND CONSIDERATION OF FORMAL BUSINESS
DECLARATION OF INTEREST:
Any member or individual in attendance (including officers) who has a clear interest in a matter on the agenda must declare that interest at the meeting.
BUSINESS FOR DISCUSSION:
Items 2-12 are items of business proposed for discussion.
BUSINESS NOT PROPOSED FOR DISCUSSION:
Items 13 onward are to be considered as routine business for approval or for information without discussion. Members are reminded that they can raise these items for discussion and to do so by advising the clerk one clear working day in advance of the meeting.
SUPPLEMENTARY INFORMATION:
Supplementary information is available at the foot of today’s agenda in Meeting Squared.
Page 1 of 1 Item 1 Declaration of Interest.docx - Page 1 of 1 Overall Page 6 of 323 November 2018 UNIVERSITY COURT: LOG OF FOLLOW UP ACTIONS FROM COURT MEETINGS
Court Date Minute Action Arising Action By:- Status Ref June 2018 243 Student Occupation University Secretary The Court agreed that the working group report should be strictly confidential but to endorse and minute its recommendations on lessons learned, being:
- A review of all current policies which relate to incidents on campus (i.e. those outwith existing statutory legislation, Complete: review included in the codes of practice and/or locally agreed policies and Internal Audit Plan for 2018/19. procedures) should be included as an urgent priority in the ongoing programme of internal Audits which are conducted by PricewaterhouseCoopers as the University’s internal auditors;
- All members of the University’s management team Complete: a training session has been undertake mandatory Conflict Resolution & Management provided by an external specialist training to support them in effectively managing future (September 2018). situations of a similar nature. In discussion, it was noted that this recommendation did not arise from a criticism of how senior management had handled a challenging situation but to recognise that all members of senior management might be called upon to respond to similar future situations should they arise and, therefore, should be trained to do so.
- A review of existing security arrangements be undertaken with a view to ensuring that appropriately resourced and Complete: procurement process concluded for provision of additional trained staff are available to ensure the security and security support when required on a ‘call safety of the University community. It was suggested that off contract’ basis. Conflict Management the training for these staff should include reference to Training provided by an external examples of professionalism, good interpersonal skills specialist to over 100 staff engaged in and positive behaviours already exhibited by current student facing areas. members of University staff. In discussion, it was emphasised that this was not intended to suggest any criticism of the performance of security staff but to recognise, as a matter of good practice, the importance of such training being undertaken on an ongoing basis.
Item 2a Action Log.docx - Page 1 of 3 Page 1 of 3 Overall Page 15 of 323 The importance of such training being appropriately funded was emphasised. In addition, the Court noted that there were currently vacancies for security staff and was assured that these would be addressed to ensure appropriate cover for normal operations was in place.
- Discussions take place with the Sabbatical Officers and Complete Chief Executive of the Aberdeen University Students’ Association to explore how relations between it and the University could be enhanced with regard to ensuring the safety and security of staff and students on campus;
Complete: The Working Group is - Cognisance should be taken of the work of the Values & engaging with the new Senior Cultures Working Group to raise awareness of the Management Team and is continuing to standards of reasonable behaviours of staff and students engage the University community more and the potential consequences should these not be widely with its work. It is anticipated that observed (which may involve formal staffing and/or a report will be presented to the Senate student conduct policies being invoked). in January 2019.
June 2018 244 Research Excellence Framework Vice-Principal for Recurring: Report Scheduled for each Research Court The Court agreed:
1) that achievement of an enhanced performance in REF 2021 was a key strategic priority and as such, it should be included as a standing item on the Court’s agenda going forward; and
Oct 2018 5 Minutes and Action Log: ‘AGM’ Proposal University Complete: The date of 26 January was Secretary confirmed by circulation to Court The Court noted that two potential dates for a new University ‘AGM’, to members in October. be held in partnership with the General Council, were under consideration. Members would be advised of the confirmed date as soon as practicable.
Oct 2018 13 Report on League Tables Senior-Vice Complete: The information requested is Principal available at the foot of today’s agenda The Court requested further information on the ranking of Business in meeting squared. Schools in Scotland. Oct 2018 15 Update on REF Vice-Principal Complete: An update on this point is Item 2a Action Log.docx - Page 2 of 3 Page 2 of 3 Overall Page 16 of 323 Research included in the paper on today’s The Court was assured that Heads of Schools had been asked to agenda. ensure that staff were aware of where they were in terms of the assessed quality of their REF papers, however, Heads of Schools would be reminded of the importance of this
Oct 2018 17 Governance and Nominations Committee: Amendments to Convener of Complete: The input of members has Standing Orders G&N/University been received and considered by the Secretary Governance & Nominations Committee It was agreed that queries from two members regarding proposals at an extraordinary meeting held on 12 for the amendment of Standing Orders would be considered by the November and is reported on as part of Convener of the Committee in consultation with the relevant its report to today’s meeting. members out-with the meeting. If, following those discussions, amendments to the proposals were required these would, if practical, be considered by the Governance and Nominations Committee by circulation before being presented to Court.
Oct 2018 19 Report on Decisions taken under Vacation Powers University In progress: The matter will be Secretary considered by the Governance & It was agreed that the Governance and Nominations Committee Nominations Committee as part of its should review whether the procedure for taking such decisions next formal scheduled meeting on 1 should be expanded to involve a wider representation of Court February 2019. members.
Oct 2018 41 Senior Governor University Complete: A report is included in the Secretary papers for today’s agenda and the The Court agreed that the Governance and Nominations Committee has recommended to Court Committee, with appropriate adjustments to ensure gender adjustments to gender balance its balance, should oversee the process and provide an initial report to membership. Court in December.
List of completed items available on Court Intranet or on request from the Clerk.
Item 2a Action Log.docx - Page 3 of 3 Page 3 of 3 Overall Page 17 of 323 11 December 2018 Strictly Confidential
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
REPORT ON THE PROCESS FOR APPOINTMENT OF THE SENIOR GOVERNOR
1. PURPOSE OF THE PAPER
1.1 As requested by Court in October, the Governance and Nominations Committee, with appropriate adjustments for gender balance, has met to consider the process for appointment of the Senior Governor. This paper presents the Committee’s report and includes:
• The role, eligibility and relevant criteria which applicants must meet in order to stand in the election required by law; Appendix 1. The draft advertisement is also enclosed. • A set of rules to govern the application and election process; Appendix 2 • The timeline for the process and holding of the election; • The remit, composition and membership of the Appointment Committee within the process. This also includes the Committee’s consideration of a motion from Senate on its composition, a copy of which is enclosed. Appendix 3
1.2 In developing the above proposals, the Committee has taken into account both the requirements of the Higher Education Governance (Scotland) Act (HEGSA) and the relevant parts of the Scottish Code of Good HE Governance 2017.
1.3 Subject to approval to proceed by Court, the recruitment and advertising process will be taken forward by the Appointment Committee. The Committee has agreed that the University should engage recruitment consultants to support the process where appropriate and external election management professionals to provide the online voting platform and issue the ballot to electors.
2. RECOMMENDED ACTION
2.1 The Court is invited to:
(i) Approve the role, eligibility and relevant criteria; (ii) Approve the application and election rules; (iii) Note the outline timeline for the process; (iv) Approve the remit of the Appointment Committee and its final composition, noting the recommendations of the Committee with regard to the Senate motion; (v) Note that subject to approval to proceed, the Appointment Committee will finalise the advertisement, application form and supporting recruitment materials; (vi) Note that recommendations on the level of remuneration to be offered, as required by HEGSA, will be developed by the Remuneration Committee for approval by Court.
3. ROLE DESCRIPTION AND RELEVANT CRITERIA 3.1 The Committee recommends the enclosed draft role description for the position of Senior Governor and, the draft eligibility and relevant criteria which, under the process specified by HEGSA, applicants would be required to meet in order to stand for election (by students, staff and members of Court). 3.2 The Committee noted the requirements of the Higher Education Governance (Scotland) Act (HEGSA) prevented members of staff or students of the University from appointment and that, on the basis of this and that a key requirement for the role was independence, that this be extended to exclude former students and staff of the University from standing for a period of four years from the date they ceased to be a student or member of staff.
Page 1 of 3
3.1 The Committee has further agreed it would be appropriate for an application form to be used in the process and for it to receive and agree this by circulation.
4. ELECTION RULES 4.1 The Committee recommends for approval the enclosed rules of the election and appointment of the Senior Governor. Period of Office 4.2 The Committee confirmed that the period of office for appointment should be three years which would be extendable for a further and final period of three years by agreement of the Court on the recommendation of the Governance and Nominations Committee. The rules also specify certain conditions that should inform any decision on reappointment. The legislation permits reappointment without recourse to a further election. 4.3 The Committee agreed that the rules should specify that members of the Appointment Committee were not permitted to endorse or advocate candidates in the election. The Committee also considered, whether the rule on no endorsement of candidates should be extended to all members of Court, but this was not considered appropriate. The Committee noted, however, that it had been confirmed under legal advice that it would be appropriate for individuals to nominate potential candidates subject to these then applying through the agreed formal process. Additional Rules on Campaigning 4.4 The Committee also considered the extent to which campaigning should feature in the election process and potential additional rules on campaigning. The Committee agreed that in addition to the provision of electoral statements to the electorate from candidates, open meetings for students and staff/Court members should be organised to provide an opportunity for engagement with the candidates. It was agreed, however, that poster campaigning was not appropriate for this type of election. The Committee agreed that it would be important to raise awareness of the role and encourage participation in the election across the University community.
5. TIMELINE 5.1 The Committee has agreed the following outline timeline for the process, culminating with an election during the week of 25 March 2019. It was agreed that it would not be appropriate to hold the election out-with recognised term times or during examination periods. The Committee also agreed that the election should not coincide with AUSA elections. The Committee noted this timeline was challenging and while achievable, any delay in the process could result in the election having to be deferred to academic year 2019/20. 12 December onwards Advertisement goes live 25 January Closing Date for Applications W/c 4 February Assessment by Committee of Candidates who meet the criteria W/c 11 February Interview of Candidates W/c 25th March Elections (over 3 or 4 day period)
6. REMIT, COMPOSITION AND MEMBERSHIP OF THE APPOINTMENT COMMITTEE 6.1 The Committee considered the motion from Senate and also noted that the Court had previously agreed that the Governance and Nominations Committee, with appropriate adjustments to ensure gender balance, should oversee the process and serve as the Appointment Committee. 6.2 The Committee notes that the process for appointing the Senior Governor is distinct and substantively different from that of the appointment of a Principal. The role of Senior Governor is a Court position and the process involved, by law, is not one of selection but of election by staff and students. The composition of the Committee as agreed by Court meets the requirements of the Act with regard to staff and student membership and is consistent with the nature of the process. The Committee is also cognisant of the need to ensure the Appointment Committee is of a size that enables it to operate effectively, particularly given the very challenging timeline for the process. The Committee was of the view that that the composition proposed in the Senate
Page 2 of 3
motion was not consistent with the process and was at, sixteen members, too large to operate effectively. 6.3 The Committee, agreed, however that it should recommend to Court that it extend the composition to include two further Senate members (increasing from 9 to 11 members). These should be gender balanced and at least one should be drawn from the Foresterhill campus. The Committee discussed whether the positions should be elected by Senate but it was agreed that this could delay the process. The Committee, therefore, agreed that it may be appropriate for the proposer of the motion and the Senate Assessor on Court from Foresterhill to fill these additional positions. The Convener was instructed to write to Senate members to advise them of the Committee’s recommendation to Court and invite them to consider the proposed appointments. The Court will receive an oral update on the response of Senate members. It was noted that this change would result in there not being a majority of independent members on the Committee. It was confirmed, however, that the Convener would have a casting vote in the event of a tie. 6.4 The Committee confirmed that, notwithstanding any decision by Court to amend the composition as proposed, the decisions made by the Committee to date and Court in December would be taken forward.
7. FURTHER INFORMATION
7.1 Further information is available from Mrs Caroline Inglis, University Secretary, email: [email protected], telephone: 01224 272094.
27 November 2018 FOI Status: Closed until approved by Court
Page 3 of 3
In Strictest Confidence Appendix 1
SENIOR GOVERNOR
Role, Eligibility & Criteria
THE ROLE
Overview
The Senior Governor is responsible for the leadership of Court, for its effectiveness, for its conduct and for ensuring the University is well connected with its internal and external stakeholders, including its students and staff.
Primary Responsibilities
The Senior Governor plays a central role in setting and maintaining excellent standards of corporate governance and ensuring the Court discharges its responsibilities. Specifically, s/he will:
Governance Responsibilities
• Lead the University Court and ensure that its necessary business is carried on efficiently, effectively and in a manner appropriate for the proper conduct of public business; • Ensure that Court acts in accordance with the instruments of governance of the University and with the University’s internal rules and regulations; • Ensure the Court exercises efficient and effective use of the resources of the University for : o Furthering its charitable purposes; o Maintaining its long-term financial sustainability; and o Safeguarding its assets • Ensure the Court sets the strategic direction of the University, through an effective planning and risk management process, and that the performance of the University is adequately assessed against the objectives approved by Court; • Ensure that proper mechanisms exist to (i) ensure financial control and to prevent fraud; and (ii) monitor the performance of Court and the University using appropriate performance indicators and other data in a constructively critical manner, being mindful of the boundary between governance and management; • Act fairly and impartially at all times in the interests of the University as a whole, using independent judgement and maintaining confidentiality, and in the interests of the University as a registered charity in line with the expectations set out by the Office of the Scottish Charity Regulator; • In common with the other Scottish Ancient universities, in the absence of the Rector or with her/his agreement, chair the meetings of Court.* (further information on the respective roles of Rector and Senior Governor is available online: https://www.abdn.ac.uk/staffnet/documents/policy-zone-committee- minutes/University%20of%20Aberdeen2018v1.pdf ).
*For the Scottish Ancient Universities, the right to preside at meetings of Court and exercise a casting vote is reserved in the first instance to the Rector under statute. The Universities (Scotland) Act 1889 (as amended by the Higher Education Governance Act 2016) states that “the Rector and in his absence, the senior lay member (Senior Governor), shall preside at meetings of the University Court and in the absence of both of them a chairman for the time shall be elected by the meeting. The person presiding at any meeting of the University Court shall have a deliberative vote and also a casting vote in case of equality.”
Leadership Responsibilities
• Establish a constructive and supportive, but challenging, relationship with the Principal & Vice- Chancellor while recognising the proper separation between governance and executive management, and avoiding involvement in the day-to-day operational and executive management of the University ; • Command the respect of Court and facilitate the conditions for all members to work together effectively, encouraging them to contribute their skills and expertise as appropriate, and seeking to build consensus; • Ensure that the Court conducts itself in accordance with accepted standards of behaviours in public life, embracing the principles of duty, selflessness, integrity, objectivity, accountability and stewardship, openness, honesty, leadership and respect; • Be responsible for appraisal of the performance of the Principal; • Oversee the processes to recruit, select and induct the Principal and an effective group of governors as vacancies arise, in line with legislative requirements and recognised best practice guidelines; • Ensure that there is effective evaluation and feedback on the performance of Court, its Committees and individual governors.
Ambassadorial Responsibilities
• Play a proactive role in representing the University at a national level to influence policy and decision-making that will affect the HE sector in general and the University of Aberdeen in particular e.g. Scottish Committee of University Chairs, the Committee of University Chairs and the Scottish Funding Council; • Represent the University internally and externally with key stakeholders, including attendance at meetings, events and other occasions; • Use personal networks and influence to advance the cause of higher education generally, and the University of Aberdeen in particular; • Be involved in the promotion of philanthropic giving.
ELIGIBILITY & CRITERIA FOR APPOINTMENT ELIGIBILITY
As a member of Court, the Senior Governor is a trustee of the University in its capacity as a charity and each candidate will, therefore, be required to confirm that s/he is not disqualified from serving as a trustee under the Charities and Trustee Investments Act (Scotland) 2005.
The Senior Governor must not have any unspent or pending criminal convictions of direct relevance to her/his ability to fulfil the requirements of the post. It should be noted that disclosure of a conviction will only result in an application being rejected if the University considers that it cannot manage the risks associated with the conviction effectively. Furthermore, the Senior Governor must declare any current or previous involvement in activities, organisations and/or financial affairs (including personal/professional bankruptcy proceedings) which may have had, or be deemed to have the potential to have, an adverse impact upon the University’s reputation.
It is an essential requirement that the Senior Governor has the demonstrable capacity to act, and be perceived as acting, independently and in the best interests of the institution as a whole. Therefore, to ensure this level of independence, independent members of the University Court are eligible to be
Page 2 of 4
appointed as Senior Governor but the role may not be held simultaneously with another role on Court. Similarly, students, members of staff, the Rector and the Principal are not eligible to be Senior Governor. In addition, no former student or member of staff of the University shall be eligible to be appointed until a period of 4 years have elapsed from the date they ceased to be a student or member of staff.
The Senior Governor may hold membership of a political party or organisation, but s/he may not hold an elected political office during the term of appointment e.g. Councillor, MP, MSP. Furthermore, the Senior Governor may not hold a position on the governing body of any other University during the term of appointment.
The role of Senior Governor requires a significant time commitment (circa 50 days per annum). Applicants will be required to demonstrate that they have the capacity to fulfil this commitment. In addition, applicants must disclose significant other commitments (including non-executive positions and/or personal business interests), with an indication of the time involved in each.
The majority of the time commitment expected of the Senior Governor comprises attendance at meetings at the University of Aberdeen which will normally be held at either the King’s College or Foresterhill campuses. In particular, the Senior Governor will be expected to attend meetings of the University Court (minimum of four meetings per year) and the Governance & Nominations Committee (minimum of three meetings per year). Meetings of the Court are currently scheduled in Session 2019/20 to take place as follows:
Tuesday, 1 October 2019 9.00 am – 3.00 pm
Tuesday, 10 December 2019 9.00 am – 3.00 pm
Tuesday, 24 March 2020 9.00 am – 3.00 pm
Tuesday, 30 June 2020 9.00 am – 3.00 pm
In addition, the Senior Governor may from time to time, in fulfilment of wider Higher Education sector responsibilities, be required to attend meetings across Scotland, in London and elsewhere as necessary. In particular, the Senior Governor will be expected to attend meetings of the Committee of University Chairs and the Committee of Scottish Chairs, which are currently scheduled to take place as follows :
Wednesday 13th March 2019, (Time tbc) University of St Andrews
Wednesday 9th October 2019, (Time tbc) University of Strathclyde
CRITERIA
Eligible candidates are required to demonstrate that they meet the following criteria to enable them to effectively fulfil the role and responsibilities required of the Senior Governor:
Leadership Skills
• A distinguished record of successful leadership at a senior and strategic level within a complex public, private or third sector organisation and extensive experience of the legal, financial business and risk management issues associated with such organisations;
• Proven track record of leadership and/or effective monitoring of the delivery of large-scale organisational change, capital or IT projects;
Page 3 of 4
• Demonstrable integrity and ability to command the respect and trust of others from a wide variety of backgrounds, including the establishment of a fair, open, honest and transparent leadership style;
• A network of contacts in the business and political communities of Scotland and beyond and an understanding of the environment in which the University operates.
Experience
• A proven track record of chairing, and/or being an active participant in, board meetings within a large and complex organisation effectively and ensuring the smooth conduct of business;
• Professional experience of strategic planning, financial and budgetary decision-making;
• Proven track record of an ability to exercise independent judgement;
• Professional experience of successfully leading, motivating and managing senior members of staff in a cross-section of professional disciplines;
• Experience in the higher education or charitable sectors is desirable, but not essential.
Knowledge
• Extensive knowledge and demonstrable understanding of corporate governance issues and a commitment to upholding the highest standards in public life;
• Demonstrable ability to identify, understand and focus on key strategic and financial issues;
• Knowledge of fundraising and development is desirable, but not essential;
• Knowledge of the European and international environment, particularly in relation to higher education.
Personal Attributes
• Demonstrable ability to command the trust and respect of members of the University Court, Senate, students and staff;
• Demonstrable commitment to furthering the values of higher education in general and the University’s vision, mission, values and strategic ambitions in particular;
• Demonstrable ability to establish a challenging but constructive and effective working relationship with the Principal, all members of Court and the University’s senior management team;
• Proven track record of being able to act independently and impartially, irrespective of personal and/or professional interests and background, in both character and judgement;
• Demonstrable commitment to the principles of equality, diversity and inclusion;
• Demonstrable ability to influence, persuade and establish good relationships with a diverse range of internal and external stakeholders;
• Excellent interpersonal and communication skills, with a demonstrable ability to encourage the open discussion of divergent points of views and the building of consensus amongst a range of constituent groups;
• An excellent facilitator, who exercises diplomacy, sensitivity and has the ability to influence outcomes and resolve conflict.
Page 4 of 4
In Strictest Confidence
Appointment of Senior Governor of the University Court
The University of Aberdeen is one of the UK’s oldest and most distinguished universities. Named as the Scottish University of the Year in the Times and Sunday Times Good University Guide 2019 and awarded the Queen’s Anniversary Prize in recognition of our world-leading medical research in 2018, we are committed to building further on our history and international reputation for teaching and research excellence.
We are seeking to appoint an exceptional individual to lead the University Court - our governing body – and to play a central role in setting and maintaining excellent standards of corporate governance and ensuring effective institutional leadership. The Court plays a crucial role in the development of the University’s vision and strategic direction and this opportunity arises at an exciting time as we seek to build upon our recent successes and develop our new Strategic Plan for implementation in 2020.
The Senior Governor must ensure that the Court is effectively led in reaching collective decisions and be able to demonstrate good governance. The Senior Governor does not have executive powers, but s/he will support the Principal and Senior Management team in delivering our key strategic objectives.
We are seeking an individual with a distinguished record of successful leadership at a senior and strategic level within a large complex organisation who is keen to support an internationally competitive research-based university. The Senior Governor will have significant fiduciary and risk management responsibilities, so professional experience and/or knowledge of strategic planning, financial and budgetary decision-making are essential. Similarly, a demonstrable capacity to act, and be perceived as acting, independently and in the best interests of the institution as a whole are key to success in this role. The ideal candidate will have the ability to evaluate and monitor the performance of the University in a constructively critical manner, and will be a highly skilled communicator who can represent the University internally and externally, promoting its interests with key stakeholders regionally, nationally and internationally.
The time commitment is circa 50 days per year and applicants will be required to demonstrate that they have the capacity to fulfil this commitment. The position is remunerated and appropriate expenses are paid.
Our current Senior Governor, Martin Gilbert, has announced his intention to demit office and will not seek to stand for election as Senior Governor. In accordance with the Higher Education Governance (Scotland) Act 2016, candidates who are deemed eligible for appointment following a formal interview will be entitled to stand for election by students, staff and members of Court.
For further information, including how to express an interest in the position, please contact Saxton Bampfylde, at www.saxbam.com/jobs using reference XX, or email XXX Alternatively, you may request an information pack by telephone on XX (during office hours). Applications should be received by XXX
For further information on the University visit: http://www.abdn.ac.uk
DRAFT AS AT 27 Nov 2018 – Strictly Confidential Appendix 2
University of Aberdeen Regulations for the Election and Appointment of the Senior Governor of Court 1 The following process and rules for the election of the Senior Governor have been prepared in accordance with the requirements of the Higher Education Governance (Scotland) Act 2016 (HEGSA). HEGSA refers to the position of ‘Senior Lay Member of the Governing Body’ which at the University of Aberdeen is the position referred to here as the ‘Senior Governor’. The appointment of the Senior Governor is conducted through three stages: (i) Advertisement, application and interview; (ii) Election; and (iii) Appointment. 2 The following regulations will be the basis for the drafting of further information and communications regarding the process for appointment of the Senior Governor to students, staff, applicants and candidates. Eligibility for Appointment
3 Independent members of Court are eligible to be appointed as Senior Governor but the role may not be held simultaneously with another role on Court. In keeping with the key requirement for the Senior Governor to be independent and to be perceived to be so, students of the University, the Rector, the Principal and members of staff of the University are not eligible to be Senior Governor. In addition, no former member of staff or student of the University shall be eligible to be appointed until a period of four years have elapsed from the date they ceased to be a student or member of staff.
Period of Office
4 Appointment to the position is for a period of three years, and may be extended for a further and final period of three years by agreement of the Court on the recommendation of the Governance and Nominations Committee, without recourse to a further election.
5 During consideration of any reappointment the Senior Governor, if a member of the Governance and Nominations Committee, will withdraw from any participation in the decision.
6 Any recommendation to re-appoint the Senior Governor will be informed by the following considerations: • The length of time the Senior Governor has served on the Court in total, taking into account the relevant higher education governance guidance on periods of office applicable at the time; • The extent to which the Senior Governor continues to meet the criteria for appointment as Senior Governor; and • The extent to which the Senior Governor continues, on the whole, to command the trust and respect of the Court and Senate and the students and members of staff of the University.
Page 1 of 6
Appointment Committee and Relevant Criteria
7 Where a vacancy for the position of Senior Governor arises, the Court will establish an Appointment Committee. The Appointment Committee will have responsibility for—
(a) devising the relevant criteria for appointment to the role of Senior Governor. These should include: the availability, skills, knowledge and experience considered by the Appointment Committee to be necessary or desirable, to discharge the role and to command the trust of the Court, Senate, and the wider staff and students of the University.
(b) ensuring the efficiency and fairness of the process for filling the position;
(c) promotion and advertisement of the vacancy, in a manner suitable for bringing the vacancy to the attention of a broad range of persons; and
(d) the publication of anonymised data on the number of applicants, and, so far as consent to disclosure has been received from the applicants, the characteristics listed in S149(7) of the Equality Act 2010 in relation to applicants, those invited to attend interview, and the candidates considered entitled to stand in the election thereafter.
8 As required by HEGSA, any advert for the position must include:
• the functions exercisable by the Senior Governor, • a summary of the relevant criteria with respect to the position and states how more information about the relevant criteria can be obtained, and • an explanation of-
(i) the process for filling the position;
(ii) how the application form in relation to the position can be obtained;
(iii) that reimbursement is offered of expenses incurred in connection with attending an interview and campaigning in an election for the position;
(iv) that remuneration and allowances are available in connection with the holding of the position.
(d) Where an application appears to the Appointment Committee to show that the applicant meets the relevant criteria with respect to the position, then in accordance with HEGSA the applicant will be invited to an interview conducted by the Appointment Committee or a sub-committee thereof. If the applicant satisfies the committee at such an interview that the applicant meets the relevant criteria, the applicant is entitled to stand as a candidate in an election for the position.
9 The Appointment Committee may decide to engage an external recruitment consultancy to assist it in discharging its responsibilities. The Appointment Committee must, however,
Page 2 of 6
take all decisions on whether an application received meets the relevant criteria and ensure any consultants engaged in the process operate within a clear remit.
10 As required by HEGSA, the membership of the Appointment Committee will include at least one student and one member of staff of the University. The Court will determine the further membership of the Appointment Committee as appropriate subject to it being convened by an independent member of Court. Members of the Appointment Committee shall normally be members of the Court. The incumbent Senior Governor will not be a member of the Appointment Committee or participate in the appointment process. No individual who applies for the position may be a member of the Appointment Committee. Members of the Committee may not endorse candidates in the election. Subject to the foregoing requirements, the Appointment Committee will, as far as possible, have an appropriate balance of members in terms of its gender diversity and other protected characteristics.
Election Rules
11 Where more than one applicant is deemed by the Appointment Committee (or a sub- committee thereof) to meet the criteria to stand for election and has confirmed their intention to stand as a candidate an election will be arranged. If only one candidate meets the criteria for election or the number of candidates in the election, either prior or during the process, subsequently falls to below two then in accordance with HEGSA the election will be postponed until the election can be held with more than one candidate standing (and the vacancy will be re-advertised). The remaining candidate will continue to be entitled to stand as a candidate in the subsequent rearranged election without further interview.
12 The Secretary to the Court shall be the Returning Officer for the election. If for any reason the Secretary is unavailable, the Court will appoint a Returning Officer. The Returning Officer will be responsible for managing the electoral process, including the arranging of the announcement of candidates and their election statements, arrangements for voting and the electoral roll, the application of the election rules herein, including with regard to the content of election statements, considering complaints raised in relation to the conduct of campaigning and the election itself, imposing sanctions as appropriate.
13 The University will make available on its website to all electors the names of the candidates, and should candidates wish, their photograph and an election statement which will be limited to 1000 words. Statements will be approved by the Returning Officer prior to publication. Open meetings for candidates to address students and staff/members of Court will be organised by the University. Any other campaigning activity and reimbursable expenses will be regulated through rules agreed by the Appointment Committee (Enclosed at Annex A).
14 In accordance with HEGSA, the following persons are entitled to vote in an election:
(a) the members of the Court,
Page 3 of 6
(b) the students of the University, defined as students fully matriculated on the date at which the electoral roll is closed. Students given temporary registration will not be eligible to vote.
(c) the staff of the University, defined as any individual who has a salaried contract of employment with the University at the date the electoral roll is closed. Any individuals engaged on temporary services, zero hours and honorary contracts are not entitled to vote.
15 No individual is entitled to cast more than one vote in the election. Each vote cast in the election carries equal weight.
16 The election will be conducted through electronic voting via a secure online voting system administered by election management professionals appointed by the University. Each member of the relevant constituency shall be issued by e-mail with a notice of the ballot, a link to the election statements of the candidates and instructions on how to cast their vote. Names on the ballot will include only their first/given name (or name known by) and surname/family name. Where a member of the electorate is unable to vote electronically, the University will, if requested, be required to make reasonable arrangements for the elector to have access to facilities to cast their vote, in a manner and timeframe approved by the Returning Officer. 17 The Appointment Committee will determine the dates of the election period but which will be during recognised term times and outwith examination periods. Where a change of circumstances occurs which in the opinion of the Returning Officer renders the voting period insufficient to enable a representative vote to be obtained under the special conditions ruling at the time, the Appointment Committee may agree to extend the said voting periods as they consider necessary.
18 The candidate who secures a simple majority of the total number of votes cast shall be declared the winner. Where there is a tie, the winner shall be determined by lot under the supervision of the Returning Officer. Candidates will be invited to attend the declaration of the result or, in their absence, to send a person as their representative. 19 The validity of any election shall not be affected by any defect in the procedure in carrying out such an election or infringement of these Election Rules unless:-, (i) on the application of a candidate or an individual designated as a candidate’s representative made to the Returning Officer, or (ii) at the instigation of the Returning Officer where she/he becomes aware of such a potential defect in the procedure or any potential infringement of these Election Rules, and after due enquiry, considers that a defect or infringement has had or may have an adverse impact on a fair and free election. In those circumstances the Returning Officer will make such arrangements and/or apply such sanctions as the Returning Officer considers reasonable and proportionate to remedy and/or to provide redress for the harm caused by the procedural defect or infringement of these Election Rules. Such arrangements and sanctions may include but are not limited to, permitting all or some candidates to provide additional materials to the electorate, pausing or suspending the election, extending the election period,
Page 4 of 6
rescheduling the election, rejecting campaign expense claims, disqualifying candidates and/or declaring the election to be invalid. 20 Any appeals against the decision of the Returning Officer will be considered in the first instance by the Convener of the Appointment Committee appointed by the Court to oversee the election process who may rule on the appeal or choose to refer the matter for decision by the Appointing Committee. Such appeals must be submitted in writing to the Clerk to the Appointment Committee within 48 hours of the decision having been made. Appeals will only be considered on the grounds of procedure or prejudice. The decision of the Appointment Committee will be final and there is no further route of appeal. Arrangements in the Event of a Delay in the Process
21 If for any reason there is a substantive delay in an election taking place due to there being only one candidate or due to an election having to be re-run, and where this results in the period of office of the incumbent Senior Governor ceasing before a successor is appointed, the Senior Independent Member of Court (or if he or she is a candidate in the election another independent member appointed by Court) will undertake the role of Senior Governor until a successor is appointed. This will also apply even if the incumbent Senior Governor is a candidate in the election.
Remuneration and Terms of Appointment
22 In accordance with HEGSA, the person appointed may request remuneration and allowances in respect of their service as Senior Governor. It is the responsibility of the Remuneration Committee to consider and recommend to Court the level of remuneration to be provided.
23 The person elected shall be subject to the Court’s terms and conditions of appointment, and regulate his or her conduct in accordance with the highest standards of governance, as set out in the University Court’s Code of Conduct, adherence to which is part of the terms of the appointment of all members of Court. In addition, the person elected is subject to the Charities and Trustee Investment (Scotland) Act 2005 which provides for circumstances under which an individual is disqualified from serving as a charity trustee and the person elected will be required to confirm that they are not so disqualified as part of their terms and conditions of appointment. In accordance with the Higher Education Governance (Scotland) Act 2016 (and the Scottish Code of Good HE Governance) a Policy and Procedure for the Removal of Members Court (including the Senior Governor) is in place to address circumstances where a member has materially breached their conditions of appointment. Ends Approved by Court on ………..
Page 5 of 6
ANNEX A Guidance and Rules on the Conduct of Candidates in Senior Governor Elections 1) Campaigning may only be undertaken during the period specified by the Returning Officer. No campaigning should be undertaken by candidates until they have been notified of that period permitted by the Returning Officer.
2) Each candidate shall be entitled to provide a photograph and election communication of not more than 1000 words which will be made available to the electorate by the University.
3) Candidates in an election will be invited to attend an ‘Open Meeting’ before an audience of students, at which candidates will have the opportunity to address the audience and take questions.
4) Candidates in an election will be invited to attend an ‘Open Meeting’ before an audience of staff/Court members, at which candidates will have the opportunity to address the audience and take questions.
5) Candidates may have only one website presence for the purpose of any campaign. Candidates may not use pre-existing websites for the promotion of their campaign. Candidates may utilise personal Social Media platforms for the promotion of their campaign but University social media channels may not be used.
6) The distribution of any other campaign materials beyond that set out above, whether in electronic or hard-copy format (including poster campaigning), is not permitted.
7) Travel expenses incurred by each candidate for attendance at interview or to attend the ‘Open Meetings’ will be reimbursed subject to being consistent with the University’s policy on expenses and will normally be limited to £500 per candidate.
8) Use of pre-existing e-mail, phone or mailing group/ lists by candidates for the purpose of promoting their campaign is not permitted. Harvesting of data from any such lists for campaign purposes is also not permitted.
9) Candidates may canvass individuals known to them. Unsolicited canvassing of other voters by e-mail, mail or phone using University directories or resources is not permitted. As noted at section (2), the University will ensure that the candidate’s statement is made available to voters.
10) A breach of these rules may result in the disqualification of a candidate by the Returning Officer. All complaints should be directed to the Returning Officer.
Ends
Page 6 of 6
DRAFT AS AT 23/11/18 Appendix 3
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
REMIT AND COMPOSITION OF THE APPOINTMENT COMMITTEE FOR THE SENIOR GOVERNOR
1. REMIT
1.1 Consistent with the Higher Education Governance (Scotland) Act 2016 (HEGSA), the Committee will have delegated responsibility from the Court for: (a) Devising the relevant criteria with respect to the position of Senior Governor; (b) Ensuring the efficiency and fairness of the process for filling the position.
1.2 In order to discharge those responsibilities under HEGSA and the Scottish Code of Good HE Governance (2017), the Committee will be responsible for: • Setting the timetable for the appointment process; • Agreeing the relevant criteria for appointment to the role of Senior Governor including: the availability, skills, knowledge and experience considered to be necessary or desirable to undertake the role and to command the trust of the Court, Senate, and the wider staff and students of the University; • The promotion and advertisement of the vacancy, in a manner suitable for bringing the vacancy to the attention of a broad range of persons and in accordance with the requirements specified in section 4 of HEGSA; • To consider and approve the scope and use of external advisers to facilitate the search for applicants for the position of Senior Governor; • Agreeing the form for applications and any supporting documentation that applicants are required to submit; • To assess all applications against the relevant criteria and to interview all applicants for the position of Senior Governor who:- (i) in response to the advertisement have applied in the correct form specified by the Committee; and (ii) appear to the Committee to meet the relevant criteria with respect to that position.
• To agree the format and arrangements for the interview of candidates and which members of the committee are to undertake the interviews; • Following interview, to agree which applicants meet the relevant criteria for the position and may stand as a candidate in an election and advising those applicants who have been unsuccessful; • To publish at regular intervals reports on the process including, at the appropriate point, the anonymised data of the diversity of applicants, those interviewed, and the candidates considered entitled to stand in the election; • To recommend to Court the rules governing the election process; • To make recommendations to Court on matters relating to the term of office for the position of Senior Governor; • To liaise with the Remuneration Committee as required with regard to the remuneration of the Senior Governor, noting that the decision on remuneration is a matter for the Remuneration Committee and Court.
2. COMPOSITION AND MEMBERSHIP
2.1 The Act requires that the Committee include at least one person who is a member of staff and one person who is a student of the University. The composition and membership of the Committee is:
Page 1 of 3
Convener (Independent member of Court)1 David Steyn
Four independent members of Court2 Lorna Jack Iain Mackay Jenny Shirreffs Kathryn McPhail
Principal (or in his absence the Senior Vice- George Boyne/ Phil Hannaford Principal) A staff member of Court (who is not a Senate Jenny Fernandes Assessor and who may be another elected staff member of Court or trade union nominated member of Court)
A Senate Assessor Joachim Schaper
Two members of the Senate (Gender Balanced) TBC A Student’s Association nominated member of Lawson Ogubie Court
Total and Gender Balance: 11 members, 5 male, 4 female, with 2 members tbc
3 QUORUM
3.1 For the purposes of ensuring the efficiency of the process, particularly with regard to interviews, it is proposed that the quorum necessary for the transaction of business at a Committee meeting be 5 members. This would enable the Committee, if required due to a large number of applicants, to operate two interview panels.
4 Voting
4.1 Each member of the Committee shall have one vote which may be cast on matters considered at the meeting. Votes can only be cast by members attending a meeting of the Committee (whether in person or by audio or video conference). The Convener will have a casting vote in the event of a tie.
4.2 If a matter that is considered by the Committee is one where a member of the Committee, either directly or indirectly has a personal interest, that member shall not be permitted to vote at the meeting.
Ends
1 In keeping with the composition of the Governance and Nominations Committee, the Court shall appoint the Convener, who shall be an independent member of Court. In the absence of the Convener and/or an appointed deputy, the remaining members present shall elect one of the remaining independent members to chair the meeting.
2 The incumbent Senior Governor will not be a member of the committee or participate in the appointment process. No individual who applies for the position may be a member of the committee. Subject to the foregoing requirements, the Committee will, as far as possible, have an appropriate balance of members in terms of its gender and diversity.
Page 2 of 3
Appendix 3a
Emergency Motion Regarding the Appointment of the Next Senior Governor of the University of Aberdeen from the Senatus Academicus to the University Court
Proposer: Scott Styles Seconders: Helen Martin, Murillo da Silva Baptista
1. Senate notes the public announcement on 9 October by the University that Martin Gilbert has indicated that he will stand down as Senior Governor & Senior Lay Member of Court once a successor to that position is elected. 2. Senate notes that Martin Gilbert conveyed this decision to the meeting of Court on 3 October. Senate thanks Martin Gilbert for the great service he has rendered the University during his term as Senior Governor. 3. Senate notes that the process of appointing the next Senior Governor (known in the legislation as the “senior lay member”) is laid down in the Higher Education Governance (S) Act 2016 ss. 3 to 8. Under ss.3-5 of the 2016 Act Court must establish an Eligibility for Election Committee (EECom) to decide on the relevant criteria that a Senior Governor and Senior Lay Member should have to be eligible for appointment to advertise the position and then interview applicants for the office and decide if they are suitable for appointment and to allow their name to go onto the ballot sheet for the election. Under s.6 an election must be held between those candidates deemed appointable by the EECom and under s.7 the electorate for this election will consist of all University staff, students and Court members. 4. Given the great importance of the role of Senior Governor and Senior Lay Member to the governance of the University and so to the future of the University Senate believes that it is very important that staff and students are fully represented on the Eligibility for Election Committee (EECom) as well as Court itself. 5. Senate therefore respectfully asks the Governance & Nominations Committee of Court to establish an Eligibility for Election Committee (EECom) which properly represents the whole university community, as was done with the 2018 selection committee which appointed Professor George Boyne to be our new Principal. 6. Senate recommends that the membership of the Eligibility for Election Committee (EECom) consist of: (i) four lay members of Court chosen by Court on a gender equality basis (ii) the two Court Members that are directly elected by academic and support staff respectively, (iii) the two Court members nominated by the campus trade unions and , (iv) the four Senate Assessors on Court (iv) the Student Association President and one person chosen by the Student Council and (v) the Principal and the Convenor of the Governance and Nominations Committee of Court. The Eligibility for Election Committee (EECom) to be chaired the Convenor of the Governance and Nominations Committee of Court.
Page 3 of 3
11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
KEY PERFORMANCE INDICATORS REPORT FOR 2017/18
1. PURPOSE OF THE PAPER
1.1 This paper provides Court with its bi-annual update on institutional performance under the strategic planning process to the end of the 2017/18 cycle, against each of the KPIs that underpin the University’s Strategic Plan (2015-2020). It should be noted that the data presented here is up to and including AY 2017/18, i.e. it does not include performance in AY 2018/19.
2. RECOMMENDED ACTION
2.1 This paper is for consideration and discussion where appropriate; it does not include any recommendations.
3. UPDATE ON RECENT ACTIVITY – SCHOOL REVIEW SESSIONS: NOVEMBER 2018
3.1 The University has just concluded its cycle of annual review sessions with each individual School, to both evaluate performance against the KPIs that underpin the institutional Strategic Plan (2015-2020), and to consider draft School plans developed for academic year 2019/20. Each session was held by a small panel led by the Principal, and a paper on key issues to emerge across Schools is now under development, to be considered first at a debrief meeting with the panel and all Heads of School, arranged for late November.
4. INSTITUTIONAL PERFORMANCE AGAINST KPIS 2017/18
4.1 Institutional performance under most KPIs was generally positive in AY 2017/18 relative to targets set. This is shown under Table 1, Appendix 1, which RAG rates institutional performance for each KPI and associated metrics to year-end (September 2018). It should be noted, that for the student population metrics, more stringent RAG rating criteria has been applied for the first time, to ensure performance ratings fully reflect and align with impacts on budget targets (see table footnotes for more information). The following sections of this paper provide a short narrative summary of performance by KPI, with key points to note.
4.2 Institutional Profile and Student Recruitment KPI
4.2.1. League Table Position (Times Higher Education and QS World University Rankings)
The University’s league table position in both the Times Higher (THE) and QS World University Rankings has been RAG rated red against in-year targets set institutionally at the outset of the planning period in 2015, following annual updates to each; September for the former, and June for the latter. However, while performance has fallen short of target for both, there has been a significant improvement in the THE; a rise of 27 places from 185 to 158, the University’s highest position since 2012, placing it third in Scotland and 22 in the UK. This was down to strong performance under research citations where it ranked 67 globally, and international outlook where it ranked 29. For QS, the drop was largely down to a decline in relative student staff ratios, along with a relative decline in both the academic and employer reputation metrics, despite significant efforts made to improve reputational scores. Performance across all league tables, both nationally and internationally, is managed via the University’s League Table Working Group, which oversees efforts to improve the University’s different league table positions by driving actions to affect the criteria which determine ranking placings.
Note: while not formally tracked under current strategic planning arrangements, institutional performance under the national rankings Complete University Guide, and Times and Sunday Times, has been excellent over the past year.
Page 1 of 4
Item 10.1 KPI Report.docx - Page 1 of 4 Overall Page 58 of 323 4.2.2. Student Recruitment (all Student Population metrics)
As shown in Table 1, Student recruitment results against metric targets were mixed in 2017/18, though the application of RAG rating criteria as a measure of performance is now more stringent for these metrics, as noted above. It is promising that there was growth at all levels in the international population, most notably for PGT, though in sum, international numbers fell 10FTE short of target. The area of most concern was RUK, with numbers falling here for both UG and PGT populations. Collectively across all measures, failure to achieve student number targets resulted in a budgetary shortfall for tuition fee income of approximately £1.5million at institutional level.
Note: while not covered in this paper, the University has achieved significant growth year-on- year in its student intake for 2018/19 (based on Snapshot 1 data, October 2018), and though a budgetary shortfall of £1.089million is predicted by year-end, that is against a backdrop of impressive growth versus more challenging targets; in particular, the PGT international population has increased by 41% relative to the same point last year. A paper providing more detail on this was taken to UMG and Operating Board in November 2018.
Going forward, Schools are working hard to increase student numbers, with a particular focus on growth in the international student population, a key strategy to mitigate threats linked to Brexit, and to underpin financial sustainability longer term. This strategy has been reflected in School planning for the next few years; a number of Schools have and will continue with the development and roll out of a range of new programmes (largely PGT level, online, blended or on-campus) informed by quality market research. There will also be increased focus on cross- disciplinary collaborations, and on growing international partnerships where possible.
4.3. Teaching, Learning and the Student Experience KPI (Non-Continuation, Student Satisfaction, Positive Destinations)
4.3.2 For Non-Continuation institutional rates dropped to from 9.1% in 16/17 to an impressive 7.7% in 17/18, with improvements attributable to roll-out of a range of initiatives including: the efforts of retention working groups across Schools; analysis of retention data at School level to enable student profiling, to facilitate better understanding of reasons for non-continuation; more comprehensive welcome and induction programmes for students, to enable early engagement with fellow students, academic staff and support services; and, enhanced monitoring of student attendance and performance to facilitate early intervention where problems are evident.
4.3.3 For Student Satisfaction, which is key to influencing league table position, there was strong performance in both metrics – even with a slight dip in the Teaching metric, performance was still above the comparable sector average. This has been underpinned by a range of initiatives, including; more forensic analysis of previous results to address areas of weakness; raising awareness with students on the importance of response rates; timing release of surveys strategically; engaging students to encourage improved response rates.
4.3.4 For Positive Destinations, the number of graduates moving into employment or further study within six months of course completion, increased from 76.7% to 80.4% in 2018, meaning target was achieved. Schools continue to work closely with both the Careers Service and industry to ensure that programmes and course content facilitate development of transferable skills, and that they align with industry and economic needs where possible.
4.4. Research Performance KPI (Grant Income per FTE, PGR per FTE, REF Period Outputs)
4.4.1 Performance against each metric under this KPI was at or above target in 17/18, signifying welcome progress, even if there are issues to note. First, for Grant Income per FTE performance was well ahead of target, and well ahead of the average in 2015 at the start of the planning period. While performance was therefore positive, and reflects well on efforts made by existing staff, there will be challenges going forward. Aside from threats posed by Brexit, research grant holdings in general are concentrated on too few staff in some areas, and over recent years, the University’s total research grant holding has declined. It dropped from £59.8M in 2016/17 to £56M in 2017/18, though there is optimism this will rise back to £58M by the end
Page 2 of 4
Item 10.1 KPI Report.docx - Page 2 of 4 Overall Page 59 of 323 of 18/19, based on current projections. Notwithstanding that, the wider pattern of decline witnessed is attributed to a decline in staff numbers; the current REF eligible population has reduced by over 20% since 2014, meaning the ability to achieve sustained growth in collective research grant income has been significantly impaired.
4.4.2 For PGR per FTE, the improved ratio between the number of PGR students and staff reflects work undertaken by Schools to improve performance. The University achieved marginal growth in the overarching PGR population in 17/18 (and indeed further growth in 18/19 based on Snapshot 1), driven by a focus on incentivising PGR recruitment through specific initiatives, such as better financial support packages, increased teaching opportunities and enhanced scholarship schemes. However, it should be noted that in other areas, positive ratios are attributable to a loss of staff rather than student growth.
4.4.3 For the REF period publications, which tracks the number of REF2021 period publications rated 3* or 4* in Pure for eligible academic staff, performance was RAG rated green, with the number of outputs judged REF standard now well in excess of target at this stage. However, there is caution that this metric includes outputs which have been rated by authors through self- certification, meaning an increased risk of unconscious bias and thus over-inflation of grading. Consequently, such outputs remain subject to peer review (internal and/or external) as part of the selection process, which in turn will enhance confidence in quality projections made. Further, there are also concerns that failure to replace high quality academic staff who have left since 2014 will impact adversely on performance in different areas. By mitigation, it is hoped the 50 strategic appointments pending will help redress, at least to some extent, deficits in quality and scale.
5. Financial Sustainability KPI (Institutional Underlying Surplus/Deficit)
5.1 Targets for the Institutional Underlying Surplus/Deficit metric were met in 2017/18; in short, Schools and Professional Services collectively exceeded their budget targets for the year by approximately £6m, to deliver a year-end deficit position of around -£3.9m, relative to a target of -£9.9m. These figures are extremely positive, and have been achieved largely through an increase in tuition fee income (even if short of target), an under-spend in staffing costs relative to budget, and less-than-budgeted operational costs. These trends signify positive progress towards the target break-even position by 2020, even if challenges going forward are acknowledged, notably increased cost pressures linked to public funding, and predicted costs linked to pensions and pay which are expected to rise over the short to medium term. In order to achieve targets, the primary mechanism will be growth in specified areas, with a particular focus on increasing the international student population, as above, growth in distance learning and online teaching delivery, TNE initiatives, and an enhanced focus on increasing research income. These priorities are reflected in School Plans drafted for the next academic year.
6. Equality and Diversity (Athena Swan)
6.1 The University’s commitment to Equality and Diversity remains a key strategic priority within the People theme, a commitment reflected across Schools. For Athena Swan, the University successfully renewed its Bronze award in November 2016, and is now working to ready a submission for the Silver Award when the Bronze Award expires in the summer of 2020, on the basis that one School or institute achieves Silver first, a pre-requisite to an institutional application. Currently, all but two of the University’s 16 Schools and Institutes have now achieved Bronze, with the remaining two submitting in late 2018. The School of Psychology is preparing a Silver application for April 2019. Across Schools, nominated leads and working groups are in place to provide oversight and operational management for the Athena Swan process; a key part of respective remits is to ensure implementation of School action plans against agreed timelines, as required. On the whole, the outlook under this metric is positive.
7. FURTHER INFORMATION
7.1. Further information is available from Professor George Boyne, Principal ([email protected]), Dr Hulda Sveinsdottir, Director of Planning ([email protected]) or Mr Iain Grant, Head of Strategic Planning ([email protected]). FOI Status: Open
Page 3 of 4
Item 10.1 KPI Report.docx - Page 3 of 4 Overall Page 60 of 323 Appendix 1
TABLE 1: INSTITUTIONAL PERFORMANCE BY KPI FOR 2017/18 2017-18 KPI Metrics 2015 Position 2016-171 2017-181 2020 Target Target League tables: QS 137 (2015) 158 172 120 100 League tables: THE 172 (2015) 185 158 120 100 Student population2: UG, Home/EU 7840 8071 8285 8088 8289 Institutional Student population2: UG, RUK 1120 1135 1069 1141 963 Profile and Student population2: UG, Overseas 514 588 610 640 716 Student Student population2: PGT, Home/EU 956 1002 1023 1027 1122 Recruitment Student population2: PGT, RUK 97 95 92 96 115 Student population2: PGT, Overseas 619 642 749 751 1264 Student population2: PGR, Home/EU/RUK 477 544 508 551 562 Student population2: PGR, Overseas 368 463 505 458 525 Teaching, Non-continuation 12.1% 9.1% 7.7% 9.4% 6.5% Learning and the Student satisfaction: teaching 84.8% 87.6% 85.4% 89.4% 92.4% Student Student satisfaction: assessment & feedback 63.4% 68.0% 71.2% 71.1% 76.4% Experience Positive destinations 75.1% 76.7% 80.4% 78.8% 82.0% Grant income per FTE3 ~£57,000 £62,035 £94,317 £61,246 £69,556 Research 3 0.62 0.9 1.7 1.0 1.1 Performance PGR students per FTE REF period publications4 NA 918 1385 807 1582
Financial Surplus Institutional underlying surplus/deficit (year-end, £M)5 0.32 -£1.89m -£3.88m -£9.9m £0.25m Equality and Bronze held but Bronze Early prep for Early prep for Ready to apply Athena SWAN Status Diversity due for renewal renewed Silver app. Silver app. for Silver Note: all Student Population metrics are RAG rated as follows: Green = 100% of target or above; Amber = 95% to 100%; Red = <95%. This is more stringent than the previous criteria (still in use for all other metrics where: Green = 95% or above; Amber = 75% - 95%; Red = less than 75%). The change has been designed to ensure that performance more approprately reflects the impact on budget targets. 1These are year-end figures, to the end of September each year. 2Student population targets are set by FTE, and fully align with School budget targets set annually. The 2017/18 targets do not include Qatar student numbers. 3The denominator for grant income per FTE and PGR per FTE is now 'Research & Teaching staff'. 4'REF period publications' currently measures the number of internally or externally reviewed publications within Pure recorded to be of 3* or 4* quality, against the target number based on existing eligible staff. Meaningful monitoring towards REF submission started in 2016-17. 5The 2014/15 position prior to the start of the Strategic Plan was calculated using an historic finanicial reporting mechanism so is not directly comparable.
*Note: this table provides data at institutional level only; data on School level performance is available on request from the Directorate of Planning.
Page 4 of 4
Item 10.1 KPI Report.docx - Page 4 of 4 Overall Page 61 of 323 11 December 2018 STRICTLY CONFIDENTIAL
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
RISK MANAGEMENT UPDATE
1. PURPOSE OF THE PAPER
1.1 This paper provides Court with an update on institutional risk management, with a particular focus on the Strategic Risk Register, which has been updated following a comprehensive bi-annual review by Owners and Managers. Five risks sit above their tolerance threshold. These are: Financial Sustainability; Internationalisation; Research Performance; Staff Recruitment and Retention; and Student Recruitment. The paper summarises issues impacting each risk area, and highlights key actions taken in mitigation.
2. RECOMMENDED ACTION
2.1 Court is invited to:
i. Note that the University’s Risk Management Framework has been reviewed, with no changes recommended (available on request from Planning: [email protected]); ii. Consider and approve the net risk scores applied to each risk area within the Strategic Risk Register, as shown in Table 1, taking account of the rationale for each, and key mitigations (Risk Register included at foot of agenda; please cross-refer).
3. RISK MANAGEMENT UPDATE – KEY POINTS
The University held a Risk Management Workshop on 17 October 2018, attended by strategic Risk Owners and Managers for each of the 10 risk areas that make up the Strategic Risk Register. This is a bi-annual event, designed to facilitate effective review of current risk management arrangements in place at institutional level, and to enable monitoring and control of all risks listed within the Strategic Risk Register. The workshop was used to review the institutional Risk Management Framework, and to review each of the 10 strategic risks, with a particular focus on the key threats which have the potential to affect the University’s ability to achieve its objectives in each area, mitigating actions, and risk scores. Each risk was discussed in depth. Further detail on each is given below.
3.1. Risk Management Framework - Review
3.1.1 As noted, the University’s Risk Management Framework (RMF) has been reviewed to ensure ongoing alignment with best practice and internationally recognised standards, as part of a continuous improvement cycle. The RMF provides a comprehensive overview of the arrangements in place for the management of risk within the University, including at institutional level, within Schools and on capital projects. With significant changes made following the last reporting round, most notably to tailor and align the tolerance threshold for each risk to individual risk appetite ratings, and to ensure alignment with the institutional Project Management Methodology, no further changes are recommended at this time. Any queries on the RMF should be made to the Directorate of Planning in the first instance: [email protected].
3.2 The Strategic Risk Register – Scoring and Amendments - Update
3.2.1 The Strategic Risk Register has also been reviewed and updated. The ten strategic risks are listed below under Table 1 (in alphabetical order) with the current net risk score shown for each, set against net scores agreed at previous reporting intervals. The table highlights which risks have breached their tolerance thresholds, noting all risks have now been given a unique threshold, tailored to reflect individual risk appetite ratings (referred to above, see the RMF for
Page 1 of 5
more detail). In total, five risks are now in breach of their threshold, and therefore additional information is given here on the management of each. Note: to review the mitigations in place against all risks, please refer to the appended risk register. The five in breach of threshold are: (2) Financial Sustainability, (6) Internationalisation, (7) Research Performance, (8) Staff Recruitment and Retention, and (10) Student Recruitment. It is notable that across these risks, Brexit is a common issue posing significant threats in each case.
3.2.2 Of the five, (2) Financial Sustainability, (6) Internationalisation, and (10) Student Recruitment have been in breach of threshold for some time, though within this reporting round, the Internationalisation and Student Recruitment net scores have been reduced to 20 and 24 respectively. It is notable that while there are varying factors affecting each risk, the overarching rationale for retaining scores above tolerance thresholds is grounded in concerns over the University’s ability to meet challenging financial targets. In that regard, all three risks are closely linked, with each either based on or directly affected by student recruitment performance, against which resultant tuition fee income has a direct impact on financial performance. The net scores for these risks are therefore closely aligned.
3.2.3 For Internationalisation and Student Recruitment, the reduction in scores has not been significant enough to pull them beneath their respective tolerance thresholds. However, the scores reflect significant short-term growth in FTEs across almost all categories within the student population for 2018/19 based on October 2018 registrations relative to 2017, particularly at international PGT level, where there was year on year growth of 41%. The reduction also reflects increased confidence following the appointment of a new Vice Principal for Student Recruitment. Ultimately, however, the net risk scores have been held above threshold because despite the growth referenced, collective performance this year is still projected to fall short, both in terms of FTE and budget targets, meaning an adverse financial impact is likely. In addition, longer term concerns linked to the student population and subsequent financial impacts remain in place, notably the potential impacts of Brexit which persist as a significant risk, along with the University’s ability to achieve increasingly challenging growth targets going forward, outwith those that may arise following the UK’s expected exit from the EU. As such, given the complexity and uncertainty around these areas, it was considered prudent to retain net scores above tolerance thresholds.
3.2.4 For (7) Research Performance and (8) Staff Recruitment and Retention, the net scores have been escalated beyond threshold for the first time since the current methodology was implemented. For (7) Research Performance, the score has increased from 16 to 25 due to a combination of issues; in particular, there has been a significant drop of over 20% institutionally in REF eligible staff relative to REF2014, meaning a smaller submission in REF2021 now seems certain, meaning a smaller financial return is likely even if quality levels are retained, which is not guaranteed. A slow decline in REF eligible staff has persisted in recent months, and has coincided with a significant decline in research income; the value of research grant awards made at institutional level fell from just under £62M in 16/17 to just over £45M in 17/18, and for research income, it dropped from almost £61M in 16/17 to just over £56M in 17/18. While key mitigation strategies are acknowledged, including the strategic drive to appoint 50 new high-quality academic staff, the success of such mitigations is not assured, and positive impacts may not be realised for some time; this will be monitored. Going forward, this context is set against the backdrop of Brexit, which will possibly result in further loss of research income should UK universities be denied access to EU funding sources, along with increased pressure on the University’s ability to attract and retain high quality staff from the EU and indeed other countries. Brexit may also affect current partnerships and collaborative relationships the University has with EU partners.
3.2.5 For Staff Recruitment and Retention, there is overlap and direct impact on Research Performance, again, with a particular focus on loss of research staff within this REF period, and the potential for further loss of staff in advance of the REF, as a consequence of REF-driven offers from other institutions. There are also potential impacts of Brexit to consider, linked to the University’s ability to attract and retain high quality staff from the EU and further afield, who would otherwise add significant value to a REF submission and the University’s research portfolio more generally. Locally, an upturn in the oil and gas sector will also create an increasingly competitive environment for the recruitment and retention of local talent, notably within professional services.
Page 2 of 5
Table 1: Previous and Current Net Risk Scores
Net Risk Scores Significant Score Increase / Strategic Risk Area Threshold Breach Oct-16 May-17 Oct-17 May-18 Oct-18 (1) Equality and Diversity 12 12 12 12 12 No Yes (stable but over tolerance (2) Financial Sustainability 18 24 24 24 24 threshold) (3) Governance and Core 9 9 9 12 12 No Business Risks (4) Health and Safety 10 10 10 10 10 No
(5) Infrastructure Sustainability 16 16 16 16 16 No Yes (reduced net score to (6) Internationalisation 25 25 25 25 20 impact 4 and likelihood 5, but above tolerance threshold) Yes (increase in net score (7) Research Performance & 16 16 16 16 25 impact and likelihood raised to Impact 5 and 5) Yes (increase in net score (8) Staff Recruitment and 12 12 12 12 20 impact and likelihood raised to Retention 5 and 4) (9) Student Experience 12 12 12 16 16 No Yes (reduced to 5 and 5 but (10) Student Recruitment 25 25 25 30 25 over tolerance threshold)
Table 2 below provides additional information for the five risks areas which have exceeded their tolerance threshold.
Table 2: Management of High-Scoring Risks Risk Area Reason for High or Increased Mitigating actions Score Financial The retained net score of 24 is due to: • Continue to appraise the potential impacts of Sustainability Brexit and to develop mitigating actions as part • Failure to achieve budget targets for of Brexit Working Group; student numbers, despite significant • Work with Schools to set and support delivery growth; of targets within School Plans (such as those • Ongoing uncertainty due to Brexit; linked to student recruitment); and the impact on EU student • Proliferation of online and blended learning numbers; programmes, designed to attract high student • Ongoing risks linked to USS pension numbers; dispute, and potential financial • Review of all PGT programmes to ensure they impacts if pension costs increase; are attractive and financially viable; • Likelihood of higher than previously • Ensure all new projects or programmes are expected pay award; underpinned by a sound Return on Investment. • Continued risk of SFC funding cuts; • Close management of all major projects, to • Risk of not accurately identifying ensure costs, budgets and funding availability level of income growth or savings remain in alignment; required to break even over the • Continued programme of identifying planning period. operational efficiencies and business improvement savings, linked to possible re- It is acknowledged that there has been structuring. significant growth in tuition fee income; however, longer term risks to the student population due to Brexit, and risks linked to USS and the annual pay award mean it is prudent to retain score at the current time. Internationalisation The retained net score of 25 is • Work to develop new institutional recruitment attributed to: strategy; • Brand awareness: ensure that marketing • Continued concern over institutional potential of recent league table success and ability to achieve challenging “University of the Year” award is fully international student recruitment optimised; targets going forward in an
Page 3 of 5
increasingly competitive market, • Continue to explore and support work in new albeit, impressive growth in 2018/19 markets, informed by Schools, based on is acknowledged; market research and previous returns. • Failure to establish and maintain • Take forward the first phase of a new Customer international partnerships in target Relationship Management system to allow us markets; to better communicate with potential students • Concern over international staff – this is ongoing. recruitment and subsequent impacts • Management of international student on other areas, including (for recruitment targets via each School Plan, as example), research funding; part of the ongoing planning process. • Uncertainty over ability to deliver • Ongoing roll-out of new online PGT TNE projects successfully and to programmes, designed in-part to attract achieve linked targets. In particular, increased international student numbers. liabilities and reputational risks • Stronger conversion and communications linked to Korea are taken into activity centrally coordinated. account. • Increased SE Asia presence: tender for a Malaysia based post now out. • Proactive monitoring of academic international visits to support staff mobility and growth of research networks using international partnership synergies.
Research Net score increased from 16 to 25: • Prospective launch of major new recruitment Performance drive to attract high quality academic staff to • Significant loss of REF eligible staff enhance REF2021 submission; likely to impact adversely on • Robust peer review of research outputs to REF2021 submission, at least in optimise quality of REF2021 submission, as scale and in financial terms, and part of comprehensive REF preparations; potentially in terms of quality; • Enhanced support for impact case study • Ongoing decline in total research development, for REF2021; grant income, across years, largely • Develop strategies to mitigate effects of Brexit due to staff losses; as part of Brexit Working Group, including • The potential impacts of Brexit on diversification of research grant income how it might affect research staff sources, to include increase in partnerships numbers (both EU and non-EU); and collaborations with institutions abroad; • The impact of Brexit on access to • Enhanced research mentoring and peer review EU funding – the University currently programmes at School level, to improve output holds approximately £5million of EU quality and research grant applications; grant funding; • Encourage greater engagement by Schools of • The potential impact of Brexit on the Research Grant Academy, led by R&I; current research collaborations with • Enhance training in different areas of research EU partners. for staff.
Staff Recruitment Net score increased from 12 to 20: • Prospective launch of major new recruitment and Retention drive to attract high quality academic staff to • The potential impact of Brexit on enhance REF2021 submission. recruitment and retention of EU staff • Offering loans/advances of salary for staff • The prevailing social and political seeking Indefinite Leave to Remain (ILR) as climate, and likely changes in well as EU staff seeking settled status. legislation, with the possible • Provision of ongoing support for staff from legal introduction of VISA requirements, experts as and when more information is may make the recruitment of EU available concerning immigration legislation staff more difficult. post Brexit. • In parallel, there have also been • Review of our Reward Strategy to ensure that significant drops in REF eligible our arrangements for reward and recognition staff, which as documented, is likely are modernised and attractive. to adversely affect the REF return and research income performance. • Locally, forecasts have improved for the oil and gas sector, meaning an expected upturn in staff recruitment which may make it more difficult for the University to attract and retain high quality talent, notably within the professional services function.
Page 4 of 5 Student The net score retained at 30: • Appointment of a new Vice-Principal for Recruitment Student Recruitment; • Projected failure to achieve • Continue to appraise potential impacts of challenging targets for 18/19, Brexit and to develop and implement mitigating collectively and across a number of strategies, as part of Brexit Working Group; categories, despite significant • Carry out appraisal of all PGT programmes, growth. identifying those which are viable and those • Ongoing concerns over potential which have poor uptake. impacts of Brexit and how it might • Continue to develop and roll out strategies and affect EU student numbers, and plans for recruitment of SIMD20 students change the position for Scottish including continuation of the free year’s recruitment. accommodation initiative. Application • Significant challenges in achieving submitted for funding from DT to support travel RUK targets which continue to bursaries for potential widening access / decline; articulating candidates to visit campus; • Uncertainty over performance of • Articulation with FE Colleges: development of new online distance learning new pathways and improved admissions offerings, and the ability to meet processes to ensure that as many student as targets in untested markets, though possible articulate with full credit acknowledging an increase in CPD, • Local schools engagement: new activity online and flexible learning options; championed by Principal: activities and visits • Longer terms concerns over the taking place Autumn 2018 and possible University’s ability to meet SFC Principal's award launched in local schools targets in areas like SIMD20. • Continue development of new online • Continued increase in targets programmes, supported by development of across almost all student categories shop-front and back-end system. going forward.
4. SCHOOL RISK REGISTERS
4.1 All Schools have in place risk registers which have been designed to support delivery of key objectives at that level, in line with the agreed key performance indicators that underpin both the institutional Strategic Plan and also annual School Plans. Schools are using risk management as a standard management tool, with regular reviews of their risk registers undertaken via School Executive Committees. School risk registers are reviewed centrally twice per year via the School planning process.
5. FURTHER INFORMATION
5.1 Further information can be obtained from Dr Hulda Sveinsdottir, Director of Planning ([email protected]) or Iain Grant, Head of Strategic Planning ([email protected]@abdn.ac.uk).
IG/Planning [19 October 2018] [1] [Open]
Page 5 of 5 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
COMMENTARY ON 2017/18 ACCOUNTS
1. PURPOSE OF THE PAPER
1.1 This paper discusses the University of Aberdeen 2017/18 Accounts.
2. RECOMMENDED ACTION
2.1 Court is invited to approve the Accounts for the year ended 31 July 2018 and their submission to the Scottish Funding Council.
3. DISCUSSION
3.1. ANNUAL REPORT & ACCOUNTS 2018
3.1.1 The University of Aberdeen consolidated group financial statements have been prepared under Financial Reporting Standard (FRS102) and the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education. KPMG, the University’s external auditors, have completed the audit of the University group accounts and have provided a clean audit certificate.
3.1.2 The Annual Report and Accounts 2018 document has been reviewed by the Audit Committee. A number of presentational changes were requested and the Report has been updated accordingly.
3.2. RESULTS
3.2.1. The University group reported a surplus of £9.7m for the year ended 31 July 2018. The operating deficit before movements of the value of investments, property and pension liabilities was £7.5m. Included in this are exceptional items such as the impairment of Crombie and Johnstone halls and the movement in various provisions, once adjusting for such items the underlying deficit was £3.9m.
£m
Deficit before other gains and losses (7.5)
Release of unused voluntary severance provision 0.5 Provisions (onerous contracts and pre-establishment costs) 1.1 Changes in tuition fee assumptions (1.0) Impairments 2.2 Pension provision adjustments 0.8
Underlying deficit on operating activities (3.9)
3.2.2. Further details are available in the Financial Review section of the Annual Report on pages 60 to 65.
4. FURTHER INFORMATION
4.1 Further information is available from David Beattie, Director of Finance ([email protected]) or Craig Sherrit, Assistant Director, Financial Accounting ([email protected]).
28 November 2018 FOI Status: Open
Item 11.1 Accounts Commentary 2017-18.docx - Page 1 of 1 Overall Page 67 of 323 2018 Annual Report & Accounts
Julie Mortimer celebrates her success Distance learning student in the PGDE DLITE
Item 11.a Annual Report 2018.pdf - Page 1 of 102 Overall Page 68 of 323
S * 7 N D* + Y Overall Page 69 of 323 TE UD enrolled at 00 0 CA Qatar campus as NATIONALITIES THER ST 130 STUDENTS OF 14 STUDENTS IN THE WORL TIONALITIES R FUR ,5 fied * one of the DING si 6 D/O NA % as
12 TUDENTS S 14 S WORK AN ch cl named T BEAUTIFUL LD LEA UA F GRAD ear Item 11.a Annual Report 2018.pdf - Page 2 of 102 R es get Based on sample available to work - DHLE survey, HESA 201 Based on sample available to WITHIN 6 MONTHS GO ON TO ound MOS O ** CEO World magazine 201 SIR DUN RY RICE LIBRA S 95.8% ts W of r 75 uden st in line with the 2014 Research Excellence Framework (REF) results
ed with the city at VE Our ry RSES Associ tu ON CAMPU and all ar FREE WIFI
E FI NOBEL PRIZE OU th cen hing 0 18 ac st Te e
mo DEGRE IC C
ag 0 es Al d C
OGRAMMES EL s Vill
since the ARD 95 37 FIRST PR S CLUBS unde
Over
Sport nd societi Fo GA YMPI
a
deen
AND 14 OL SPORT Aber ST 15 BE
UoA 3
4 5 6 7 38 43 47 56 60 66 68 73 98 Overall Page 70 of 323
Item 11.a Annual Report 2018.pdf - Page 3 of 102 welcome Senior Governor’s introduction Principal’s 6Vision a glance at Strategy plan our strategic against Progress and governance of corporate Statement control internal of the Court primary responsibilities of Statement 2017-2018 Committees and key of Court Membership Risk management review Financial of the the Court to report Independent auditor’s of Aberdeen University statements Financial policies and accounting principal of Statement techniques estimation advisors Principal 99 Glossary Contents Overall Page 71 of 323
Martin Gilbert Senior Governor involved in the recruitment of George, a process a process of George, recruitment in the involved across contributions from from which benefited We community. and the University our Court his for Sir Ian Diamond, to tribute pay must also the to and contribution commitment remarkable 2010. Being named as Scottish since University the Queen’s and receiving of the Year University two are Higher Education Prize for Anniversary his conclude on which to successes well-deserved tenure. a to comes as Senior Governor term current My the transition overseen Having year. next close the and with of the University in leadership legislation of the HE governance requirements seek to not decided I have force, into coming have to proud I am incredibly reappointment. of this wonderful as Senior Governor served I will graduate, institution, and as an Aberdeen the University’s promote to continue certainly the world. around and its many successes story about our more learning enjoy I hope you follow. that in the pages achievements University’s Item 11.a Annual Report 2018.pdf - Page 4 of 102
In an organisation and community as complex, as complex, and community In an organisation of as the University and numerous diverse every convey to it is impossible Aberdeen, has shaped another that and event development I institution. However, of this great in the life year of a flavour you Reporthope this Annual will give the achievements and exciting wide-ranging how alumni of this ancient students and of the staff, remarkable It includes some are. university and innovative how talented, of how examples is. the University place inspiring a how up and its in its make that It is a community of heart its historic out from reaches impact, doing, In so the globe. it across Aberdeen Old of an example oldest Aberdeen’s is probably to strengths those has used that organisation ensuring the City of stage, on a global succeed one as home to internationally is known Aberdeen of learning. seats great of the world’s of success The great without challenges. It is not institution global in being a truly this University difficult a potentially represent may Brexit means The funding ahead. us in the years for issue to competition and the is limited environment In is intense. students and the best staff attract the that vital the more it is all environment, that its – in its research, in its future invests University and its students. its staff, its facilities, teaching, and thoughtful leadership strong requires That of the strengths the many and diverse harness to with the many partners community academic in the region, has the University and supporters With the the world. and around in Scotland Principal, of our new appointment this year we have confidence every I have Boyne, George that who will provide an individual secured continues the University and ensure leadership be me to for a privilege It was and thrive. grow to Welcome
WELCOME UoA 5 WELCOME Overall Page 72 of 323 Professor George Boyne George Professor Principal The University continues to innovate when innovate to continues The University doctors the teachers, providing to it comes helping shape professionals and many other so see to heartening It is also our society. making which are underway many initiatives and helping as open as possible the University their full potential. students reach talented centuries five over back stretching A pedigree shape has helped to the University means also the north-east of only not landscape the cultural It is clear the UK and beyond. but of Scotland, life of University tenet a key this remains see to the extensive enjoying to forward and I look to the and students make our staff contribution sense. possible Arts in its broadest the across challenges are there Of course, as other as well spectrum of higher education, and such as Brexit, must navigate, we issues and flexible remain need to we mean these we that however, I am confident, responsive. – and I thank foundations on our firm will build for Sir Ian Diamond Professor my predecessor base this strong establishing to his commitment so and progress forward move to continue – to when it comes a leader remains Aberdeen that and research learning, in teaching, excellence to impact. community Item 11.a Annual Report 2018.pdf - Page 5 of 102 It is a great honour to have returned asIt is a great honour which to a city and University Principal memories.holds so many wonderful at of this institution I know graduate As a double the experience student a positive what first-hand of seat This is a world-class provides. University its pioneering research by underpinned learning has been the University that delighted are and we of the University as the 2019 Scottish recognised Guide. the Good University by Year is pedigree with a 500 year an institution Leading taken have to pleased particularly I am a privilege. excellence a time when the University’s at up post with the has been recognised in research Higher and Further Prize for Anniversary Queen’s years two every just once – awarded Education and achievement. excellence world-class for of the examples contains report This annual the University at underway work tremendous is a no means but by the disciplines across on has gone that of everything record complete period – our highlights are during the reporting hope this we However, numerous. too simply work our of of the importance a flavour provides here. as today as strong remain principles Our founding did in 1495. they found “to ambition was Bishop Elphinstone’s and all be open to which would a university, of truth in the service the pursuit to dedicated his guiding that see to and it is clear of others” our as it did at as true today remains principle foundation. an had the University beginnings, our very From see to delighted and I was outlook international campus. students joining our Qatar the first of changing the lives research healthcare From the obesity epidemic, countering to patients, and tackling challenges food meeting global when the forefront is at Aberdeen change, climate issues. big world to it comes Overall Page 73 of 323 Our Values Innovation and relevance in our education, in our education, and relevance Innovation and engagement research of thought and responsibility Independence and action our with all partnerships Sustainable of inclusion a culture drive to stakeholders and accessibility the within and beyond both all, Respect for University and ambitious University An empowered an have all where community of Aberdeen thrive opportunity to • • • • • Item 11.a Annual Report 2018.pdf - Page 6 of 102 Our To be a progressive university where staff where university be a progressive To of within a culture and students thrive them to enable to and diversity equality their aspirations achieve To be one of the world’s top research- top be one of the world’s To with partners working universities, intensive rigorous, undertake to and stakeholders research impactful and excellent relevant, and economic cultural social, that ensure To do we of everything the heart is at impact and collaborative an integrated, build To infrastructure and digital physical sustainable ambition underpin the University’s to To enrich people’s lives through research, research, through lives enrich people’s To and sharing of knowledge learning teaching, success push boundaries and deliver to of seats top be one of the world’s To a standout providing and learning, teaching of the student experience personalised context in an international highest quality Mission AT A GLANCE AT • • • • • • VISION: with greater the world Transforming learning and knowledge
VISION UoA 7 STRATEGIC PLAN Change Overall Page 74 of 323 Status The University is now more than midway through through than midway more is now The University with 2015-2020 for period planning the strategic the high achieving towards made progress good the period. A for set aims and objectives level with indicators performance number of key period the planning for set were metrics associated in meeting our ambitions progress monitor to the and evaluate areas strategic in our key Performance Plan. of the Strategic implementation and regularly metrics is monitored key against table The following Court. University to reported listed, KPI each for status the University’s shows strategic the institutional via set the targets against Progress of 2017/18. the end to process planning Green: coded: has been colour the plan against Amber: significant achieved; milestone target Red: target target; approaching made, progress The required. further progress achieved, not has whether performance show indicator change the same during declined or remained improved, period. the planning Item 11.a Annual Report 2018.pdf - Page 7 of 102 Research Learning Teaching and Teaching Increase the number of overseas students at UG level students at the number of overseas Increase level PGT students at the number of overseas Increase in the NSS with teaching student satisfaction Increase and with assessment student satisfaction Increase in the NSS feedback graduate into who go the number of graduates Increase or further study employment number of PhD students per the average Increase (FTE) member of staff academic required publications the number of high quality Achieve REF 2021 to submission a high quality enable to member of per academic income grant average Increase (FTE)staff operating reduce sustainability and financial Achieve by 2020 to zero deficit Schools to all award, bronze of institutional Renewal silver achieve one School to least and at bronze achieve 2021. by in THE performance the University’s Enhance in QS performance the University’s Enhance Target
People
Student numbers Student numbers Student satisfaction Student satisfaction destinations Positive PGR students per FTE per FTE Publications per FTE income Grant surplus Institutional Athena Swan ranking table League ranking table League KPI
Our plan for the period 2015-2020 the period 2015-2020 for Our plan People, areas: key on three focuses and Learning Teaching Research, Plan Strategic against our Progress Progress Overall Page 75 of 323 85% at institutional level as at level institutional at 85% To provide an outstanding provide To environment educational of an the quality reflecting fostering institution, international supporting of community a sense their achieving students in all ambitions. in partnership, to Working flexible exceptional, an offer educational and individualised is demand driven that experience a at students in Aberdeen, for and full or part-time. distance, student has every ensure To their realise the opportunity to excellent providing by potential assessment teaching, research-led and feedback. our students with equip To which will skills and experience their maximise them to allow opportunities as responsible graduation. citizens upon global Goal 1 Goal Goal 3 Goal Goal 2 Goal Goal 4 Goal TEACHING All staff are required to undertake training in training undertake to required All are staff with the workplace in and diversity equality around uptake to continues University and the end of 2017/18, supportto and Equality frameworks staff develop of employment, including in respect Diversity, staff. of disabled development and career training in place, has a Gender Action Plan The University aim overarching the deliver which is designed to in the student imbalances gender of reducing on focus with initial subject level, at population our student amongst balance gender improving Computing Physics, in Education, populations and Psychology. Science, through and diversity equality encourage also We aimed activities our many widening participation and supporting university to access opening at as such groups, under-represented entry from students with responsibilities, students with caring of multiple areas disabilities, from and students in Scotland. deprivation Item 11.a Annual Report 2018.pdf - Page 8 of 102 People are at the heart of our Strategic Plan. We are are We Plan. of our Strategic the heart at are People the and retain attract to continuing to committed andworld the around and students from best staff promoting culture and diverse a caring fostering to and diversity. equality for a strategy has in place The University which Charter with the Athena SWAN engagement gender to commitment and recognises promotes to enhance efforts of our tenet as a key equality with engagement Staff and diversity. quality All academic has been exemplary. Athena SWAN the Scheme, and with submitted to units have and two the end of 2017/18 at awards 11 bronze hopes the University underway, applications Silver in 2020. award silver an institutional for apply to KPI: People Athena Swan: least at have to aims the University 2020 By can it that so award one School with a silver in April award silver an institutional for apply bronze units held 11 of 16 academic 2020. Schools other all the end of 2017/18, at awards silver and two submitted applications, had progress. in were applications To continue to foster a positive University University a positive foster to continue To and engaged fully are all that in order culture be champions and to our future to committed and Diversity. of Equality To enhance further our caring culture of of culture further our caring enhance To in the community and collegiality belonging on focusing alumni, and students of staff, full potential. realising excellence to a students and staff and retain attract To institution international significant globally in and excellence, capacity strengthening location. University or another Aberdeen Goal 1 Goal Goal 3 Goal Goal 2 Goal
STRATEGIC PLAN UoA STRATEGIC PLAN 9 Overall Page 76 of 323 KPI: Teaching and Learning KPI: Teaching rates: Non-continuation of our students 93.5% least at want we 2020 By non- (a 2 of their studies year to progress to At the than 6.5%). of no more rate continuation and met our milestone had we end of 2017/18 institutionally. 7.7% at stand currently our to strand is a key of students The retention to continue and we strategy and learning teaching of students into progression on increasing focus needs meet the varying To of study. year second teaching enhancing our are of our students, we transformation a digital implementing facilities, online learning a new introducing and strategy, courses, short part-time study, offering strategy, to courses, and Access online programmes, CPD, greater the world students around more allow study flexibly and the opportunity to access learning, including both modes of different via of our As a result learning. and distance blended have we teaching, enhance to initiatives various in progression improvement a continued seen confident remain the institution and we across for set meet the ambitious targets can we that 2020 KPI: Teaching and Learning KPI: Teaching Employability: will either be of our graduates 82% 2020, By or further study employment in graduate of Leavers the Destination by as measured The (DLHE) survey. in Higher Education in has improved performance University’s with the met our targets, and we 2017/18 being 80.4%. currently rate employability of some have graduates of Aberdeen University in the UK and the prospects the best employment rates boasts employability consistently University We averages. and UK-wide the Scottish above continuously partners, with industry close work meet the needs of our curriculum to reviewing and students, and proactively employers both our students help to support skills development are they that so and socially academically grow to The upon graduation. join the workforce to ready in recent sector the oil and gas facing challenges of prospects the employment has affected years see to pleased are of our students but we some performance in strengthened signs of recovery the number which surveys in the DLHE survey or employment of students in the UK securing embarking on further study. Item 11.a Annual Report 2018.pdf - Page 9 of 102 It is important to the University that our students that the University It is important to studying at while experience a positive have with the skills leave they and that Aberdeen their maximise to needed and experience component A key opportunities upon graduation. and the enhancement is digital of this strategy and personalised of an exceptional delivery amongst Student satisfaction student experience. since students has increased our undergraduate period; planning the beginning of the strategic and continue targets met our milestone have we sectoral the UK and Scottish above perform to averages. KPI: Teaching and Learning KPI: Teaching Student satisfaction: a achieved have to aims The University and teaching) (for of 92.4% score satisfaction 2020, by and feedback) assessment (for 76.4% Survey Student in the National as measured is on an upwards Our performance (NSS). for met our milestones have and we trajectory (85.4%) in 2017/18 with teaching satisfaction (71.2%). and feedback and assessment Our internationalisation strategy aims to attract attract aims to strategy Our internationalisation world, the across and students from the best staff their horizons expand students to and encourages The abroad. study and travel language through as one of the ranks consistently University and in the world universities international most population student and staff our diverse through our students a truly offer to able are we environment. educational international excellent grow to continued has recruitment International our opened period and in 2017 we in the planning with in partnership in Qatar campus overseas first and Academic Educational for Group the Al-Faleh offer to support our goal (AFG), to Services all our students wherever to education flexible be in the world. may they KPI: Teaching and Learning KPI: Teaching recruitment: student International an have aims to the University 2020 By 2500 around of population international support growth institutional students to further our international and strengthen at met milestones have We reach. to and recruitment level undergraduate is growing. programmes postgraduate 2018 158 172 2017 185 158 Overall Page 77 of 323 2016 188 141 2015 172 137 2014 178 137 To enhance our research capabilities and ensure and ensure capabilities our research enhance To the cutting of research edge at remain we increase aims to the University developments, students research the number of postgraduate of ratio enhanced an through as measured staff. academic students to research postgraduate with a steady met in 2017/18 were targets Milestone students in the of research in the ratio growth the and across institutionally period, both planning majority of Schools. KPI: Research Academics Eligible for Publications REF Period milestone monitors closely The University publications the number of research for targets close are We with REF standards. compliant to place in with plans targets milestone to 2021. by of publications the number increase exercise Framework Excellence Research The next are preparations Institutional in 2021. will be held ensure the REF to to submission for advanced well monitoring with close results, excellent deliver we of the and recording publications of research has. our research that impact societal KPI: Research Number of PhD students per staff FTE: the number increased have aim to we 2020 By Our member. students per staff of research the throughout been growing numbers have for on target are period and we planning students research of 1.7 average with an 2017/18 (FTE). staff (FTE) per member of academic Item 11.a Annual Report 2018.pdf - Page 10 of 102 2013 188 148 THE QS
To be in the top 100 universities in 100 universities be in the top To tables league major international 2020 by While performance in league tables is an imprecise measure of excellence, the University monitors monitors the University of excellence, measure is an imprecise tables in league performance While on the Times focus with particular rankings and international national in key performance institutional The University’s Rankings. University World and the QS Rankings University (THE) World Higher Education voted also was It world. to 158 in the rising 27 places year, in the THE this significantly improved position Guide published in University Times Good in the Times and Sunday of the Year University Scottish a is pursuing and the University Rankings World in the QS lower ranked we 2018. However, September 2020. by our position improving markedly to this, with a view address to of initiatives range Reputation As a research intensive institution we continuously continuously institution we intensive As a research part As excellence. our research enhance to strive research annual increase aim to we of this strategy consultancy research, through generated income £63m to income, exchange knowledge and other per contribution grant increase and to 2020 by research (FTE). staff Our member of academic on the world, impact measurable have to continues and national disciplines across collaborate we with relationships built strong boundaries, and have level, institutional At and society. business industry, the across trajectory a positive indicates progress we that confident remain period, and we planning 2020. for targets will meet overall To strengthen our position as a world class, class, world as a our position strengthen To on areas focusing university, intensive research of excellence. of our impact the non-academic increase To an enhanced through on the world research with activities exchange of knowledge portfolio and society. business industry, KPI: Research per staff income FTE: Grant income grant increased have aim to we 2020 By staff theFTE.year-end, per academic At approximately at target, above was University 94K per FTE. Goal 1 Goal Goal 2 Goal
STRATEGIC PLAN UoA STRATEGIC PLAN 11 Overall Page 78 of 323 Item 11.a Annual Report 2018.pdf - Page 11 of 102 Overall Page 79 of 323 NEW PROJECT TO TO NEW PROJECT MAJOR CAUSE TACKLE OF BLINDNESS up with has teamed The University a condition tackle to NHS Grampian common most which is the fourth was project The of blindness. cause the Chief £200,000 from awarded for Sight and Fight Scientist Office of cells the use explore charity to immune system own the body’s from uveitis. autoimmune suppress to UNDERSTANDING HOW HOW UNDERSTANDING IS CREATED THE HEART HELP HEAL IT IN COULD LIFE LATER secured researchers University than £1 million of funding more Foundation the British Heart from is the heart how investigate to It is thought built in the womb. of the understanding better that drugs develop help to could process it should repair to and techniques life. in adult occur damage Item 11.a Annual Report 2018.pdf - Page 12 of 102 A new ground-breaking fungal ground-breaking A new the by unit run research infection and University of Aberdeen University two its first appointed of Cape Town 2018. The AFGrica in July scientists the burden address to Unit is seeking infections fungal invasive of serious income and middle low borne by where in Africa, particularly countries, diagnosed 50% of people around die as infections fungal with invasive two The first of the infection. a result been appointed have to scientists Dr Liliane Unit are the AFGrica to Hoving. Claire and Dr J. Mukaremera TACKLING FUNGAL TACKLING STAFF FIRST INFECTIONS: CAPE APPOINTED TO UNIT AFGRICA TOWN New getting research underway A £10.5 million prostate cancer project project cancer A £10.5 million prostate James Professor the University’s by led answer to big data will use N’Dow cancer. questions about prostate critical common is the most cancer Prostate representing of men in Europe, cancer The deaths. cancer male 1 in 10 of all in the plug the gaps aims to project and of the management knowledge in order of the disease treatment for better outcomes provide to which The PIONEER project, patients. institutions and 32 incorporates aims to nine countries, from companies platform data innovative a single create from big data existing integrating by cancer from sources data many quality of stages many different across patients the disease. ABERDEEN RESEARCHER ABERDEEN RESEARCHER LEADS £10.5M PROSTATE TO PROJECT CANCER ANSWER ‘CRITICAL’ QUESTIONS
DEDICATED TO THE PURSUIT OF TRUTH UoA 13 DEDICATED TO THE PURSUIT OF TRUTH Overall Page 80 of 323 FIRST-EVER PATIENTS PATIENTS FIRST-EVER NEW BY SCANNED MRI GENERATION SCANNER A team at the University scanned scanned the University at A team using a of patients group the first Cycling’ Field ‘Fast ground-breaking 2017. in November MRI scanner suffered all who had The patients, in the first be the to agreed strokes, the new by be scanned to world milestone marking another machine, association long in the University’s Research with MRI machines. Lurie, David Professor leader, group which the FFC scanners, described field, their magnetic switch can MRI 100 different having as ‘like “This He added: in one’. scanners the dimension to an extra gives patient, each from collected data the diagnostic expanding greatly the first and conducting potential towards a major step marked scans by being adopted our technology which is benefit patients, to hospitals of our research.” goal the ultimate Item 11.a Annual Report 2018.pdf - Page 13 of 102 UNIVERSITY RECEIVES UNIVERSITY RECEIVES FUND £1 MILLION TO GREEN RESEARCH ten one of only was The University receive the UK to across universities Doctoral Leverhulme a prestigious than of more Award Scholarship funding to million in project £1.1 a new will train that a centre establish develop to of researchers generation organic convert that technologies Their materials. sustainable into waste on the conversion will focus research into waste organic of unavoidable and materials chemicals essential pharmaceuticals, fuels, fertilisers, (e.g. anaerobic via materials) construction separation by followed digestion of the conversion and chemical Judith Masthoff, Professor products. funding bid, the successful who led said: “Thisachievement is a fabulous on and builds the University for outstanding for our reputation training.” research postgraduate UNIVERSITY PARTNER UNIVERSITY PARTNER MILLION AI IN £1.1 ACCOUNTABILITY PROJECT in partnership will work The University and of Oxford with the universities million project on a £1.1 Cambridge akin to systems auditing develop to for artificial recorders flight box’ ‘black by Funded (AI) systems. intelligence Sciences the Engineering and Physical the project (EPSRC), Council Research solutions prototype develop aims to secure, provide to developers allow to of intelligent records tamper-proof and behaviours. characteristics systems’ who leads Edwards, Pete Professor said: “AI team, the multi-disciplinary in being utilised are technologies including scenarios and more more smart home vehicles, autonomous and retail services, public appliances, happens But what manufacturing. as in the fail, when such systems accidents high-profile of recent case How vehicles? autonomous involving to and developers systems hold we can be making to found are if they account are decisions? These or unfair biased that given challenges, and timely real all many aspects affect AIs will increasingly life.” of everyday Overall Page 81 of 323 Item 11.a Annual Report 2018.pdf - Page 14 of 102
HERU and HSRU – flagship units with a pedigree pedigree units with a HERU and HSRU – flagship the way - lead decades four back stretching economic which combine with their approaches which medical assess to research and clinical for the effective most policies are and treatments NHS. among a of HSRU and HERU were The directors their met and discussed that delegation University of and the Duchess of Wales with the Prince work of the Prize at presentation a special at Cornwall Buckingham Palace. is Award Anniversary the Queen’s “Receiving of the University for honour a tremendous of the acknowledgement and a superb Aberdeen
across the world across is informing that PIONEERING RESEARCH healthcare and transforming policy government of the University has earned the globe across to honour awarded prestigious the most Aberdeen institution. a UK academic Health the University’s at expertise Leading Unit (HSRU) and the Health Research Services Unit (HERU) has been Research Economics Prize for Anniversary with the Queen’s recognised just once – awarded Education Higher and Further and excellence world-class for years two every achievement. the as a whole, the University on Bestowed health for given Prize was Anniversary Queen’s in improvements to leading research service of and delivery practice and clinical academic care. health for research that is changing healthcare healthcare is changing that research for
FEATURE UoA FEATURE 15 Overall Page 82 of 323 Item 11.a Annual Report 2018.pdf - Page 15 of 102 devised new methods of gathering public of gathering methods new devised patient- helped develop which have preferences care. centred surgical the benefits of new test to ways new found when views and included patient’s procedures This has been medicines and treatments. evaluating policy and international national by adopted widely makers. research into local variations in the competitiveness in the competitiveness variations local into research in the changes to led pay of public sector the UK funding across distribution of healthcare in prescribing antibiotic nationwide transformed a 7% reduction and produced practice dental general usual to compared prescribing antibiotic in annual practice. recommendation to the led that findings produced embryos multiple receive not should women that several Previously IVF treatment. when undergoing the chances maximise to transferred were embryos births and serious multiple to But this led of success. that showed Research and children. mother risks to when only reduced not were of success the chances accepted This is now transferred. was one embryo worldwide. practice the across countries five from patients recruited provided that trial treatment glaucoma to globe of 20 million the lives transform could that evidence worldwide. patients that Group Incontinence the Cochrane established for base evidence the international has transformed of incontinence the management research and economic modelling which and economic research on smoking in public places underpinned the ban with correct, proved Their predictions in Scotland. declines in substantial studies showing subsequent and complications asthma, pregnancy childhood problems. heart support the introduction to used which was research in Scotland. of minimum unit pricing of alcohol of robotic the introduction for evidence provided the balance Previously, cancer. prostate for surgery Theirwas unknown. benefits harms and of potential beneficial was surgery robotic that showed research the across robots of surgical in the purchase resulting UK. Screening the UK National to evidence gave a introduce to the decision not for Committee programme. screening lung cancer national • • • • • • • • • • • The medical care of millions of people all over the world the world over all of millions of people care The medical of the research because ways in improved is conducted helpedalso work has and HERU. Their of HSRU findings of their examples Key policies and legislation. guide key include: work outstanding research excellence from HERU and from excellence research outstanding and Principal Boyne, George said Professor HSRU,” of Aberdeen. University of the Vice-Chancellor who pride in our researchers great must take “We than 1,000 studies, involving more conducted have worldwide. 1,500 places 46,000 participants from practice, clinical changed have The results and academic and legislation, policy government achievements.” remarkable are studies. These in role key a played who Russell, Elizabeth Professor Research Services of the Health the establishment Unit, added: Research Economics Unit and Health and on the outcomes “The of focusing idea the late from came treatments of medical value the at Senior Vice-Principal - a former Weir Roy of the vice-chairman of Aberdeen, University Chief and Scottish Board Health then Grampian and a visionary who an innovator Scientist. He was patients happened to about what concerned was they Were finished. had treatments acute after long run?better off in the was 60s, there the same time, in the late “At and a growing treatments in new an explosion be enough money wouldn’t there that awareness an It was the result. do them all. The Units were to the first were and we come, time had whose idea in the field. an made have “The and individually, Units, together and the understanding to enormous contribution should patients how in choosing of evidence use be as can service the health that so best be treated possible.” efficient as Overall Page 83 of 323 BONE STUDY SHEDS SHEDS BONE STUDY NEW LIGHT ON THE OF BRITAIN’S HISTORY WEANING HABITS the University from Archaeologists study on new a significant led weaning of Britain’s the history the that habits and discovered is of breastfeeding cessation early as era, in the Victorian rooted not as but as early perceived, commonly Working the 16th and 17th centuries. with archaeological in partnership of the University from scientists a method used researchers Reading, of analysis isotope stable called the reconstruct to bone, in order of individuals weaning at age typical St Nicholas Aberdeen’s buried at 18th centuries. Kirk, in the 12th to archaeologists has enabled This work insights than ever greater gain to feeding infant how into before in the centuries over habits evolved city. a single Item 11.a Annual Report 2018.pdf - Page 16 of 102 Howell said: “Drone technology is technology said: “Drone Howell have could we that fast so moving up and running in a fully a system a low send to Being able years. few any unit to drone portable cost could the world around volcano monitor we how revolutionise really for and be a game-changer volcanos in their and work who live the people this technology Ultimately shadow. a much better help us build could and in behave volcanoes of how idea lives.” save could the future understanding Advancing our Scientists from the University created created the University Scientists from of image 3D thermal first the world’s alongside Working volcano. an active of the University from geologists to technology drone used they Oslo detect can that a technique develop of in the behaviour changes subtle accurate more providing the volcano, of an on the likelihood information ultimate team’s The research eruption. automated a fully develop aim is to is that system monitoring drone and cheaper safer accurate, more methods, which are than current countries in developing unaffordable active many of the world’s where John Professor located. are volcanoes SCIENTISTS CREATE WORLD’S FIRST 3D THERMAL FIRST WORLD’S CREATE SCIENTISTS OF VOLCANO IMAGE
DEDICATED TO THE PURSUIT OF TRUTH UoA 17 DEDICATED TO THE PURSUIT OF TRUTH Overall Page 84 of 323 ‘CLUB FOOT’ GENE FOOT’ ‘CLUB IDENTIFIED in a role play which could A gene of cases severe the most causing scientistsby identified was club foot The condition the University. at and lengthy requires currently even after but treatment difficult bend can foot the this treatment invasive a more meaning back, The identification is required. surgery model using a mouse of the gene for identify those help to could likely is least whom the treatment Martin Professor be successful. to could said: we “In theory if Collinson genes these for children screen starts, then they treatment before of unnecessary years avoid could interventions.” Item 11.a Annual Report 2018.pdf - Page 17 of 102 ‘VIKING AGE ‘VIKING AGE FOUND DESTRUCTION’ PRESERVED HAVE TO OF KEY PARTS LARGEST SCOTLAND’S FORT PICTISH excavations continued Archaeologists largest – Scotland’s Burghead at that – and discovered Pictish Fort razing,often which is fire 10th century has actually Vikings, to attributed parts of the structure large preserved rotted have normally would that Dr Gordon by led The team, away. timber a huge uncovered Noble, stood have which would wall laced have high. They than six metres more which dating carbon for samples now the insights into new provide should built, its was period when the fort destruction. and final construction NEW RESEARCH REVEALS NEW RESEARCH BURIED BRITISH ISLES FROM UNDER ICE SHEETS 2.5 MILLION YEARS AGO Breakthrough research led by the by led research Breakthrough and of Aberdeen Universities British Isles the revealed Manchester under an submerged repeatedly were of the the centre to sheet extending ice earlier a million years over North Sea thought. analysing By than previously from data and seismic cores sediment they the North Sea, deep beneath sheets ice extensive that discovered much of the UK covered repeatedly ago. 2.5 million years from and Ireland published were their findings Before the Scientific Advances, in the journal been that had consensus scientific occurred first on this scale glaciation million years about 1.1 in the North Sea the project, who led Rea, Brice Dr ago. change completely findings said: “Our back far of how our understanding the sheets covered ice in time large from with ice and merged British Isles Scandinavia.” Overall Page 85 of 323 University scientists collaborated collaborated scientists University of Institute with the Waterford of and the University Technology show to Amherst Massachusetts help in can pine martens that that - squirrels of red the conservation of invasive the spread reversing by The study, populations. squirrel grey Dr Emma Sheehy by led which was Lambin from Xavier and Professor Sciences, the School of Biological of the and state DNA forensics used the hypothesis test to art analyses relationship the that and confirmed in the squirrels and grey red between of in the presence altered UK is clearly predator. a native PINE MARTENS PINE MARTENS AS KEY CONFIRMED GREY REVERSING TO INVASION SQUIRREL Item 11.a Annual Report 2018.pdf - Page 18 of 102 Scientists from the University University the Scientists from with the in partnership worked on of Sciences Academy Chinese examining date study to the largest of diet - fat, components what - caused or protein carbohydrates John Professor weight. gain to mice said the study, who led Speakman, – the unequivocal were the results get the mice made thing that only in their diets. fat more eating was fat on based was Though the work it enabled than humans, rather mice of pinpoint the roles to scientists and the clearly more element these in physiology similarities that say team the research mean and metabolism the what clue to good ‘a provides to are likely diets of different effects be in humans’. NEW STUDY FINDS THAT THAT FINDS NEW STUDY IS CONSUMPTION FAT OF CAUSE THE ONLY WEIGHT GAIN SCIENTISTS REVEAL SCIENTISTS NEW INSIGHT INTO OBESITY TACKLING have Institute the Rowett Scientists at cells of brain a tiny group discovered tackle to be harnessed could that published in Their work, obesity. sophisticated used Metabolism, Cell which turn on the cells, to techniques of the solitary in the nucleus found are intake food integrate to and work tract reduce the gut, to from information Professor scientist, Lead intake. food approximately said: “Today, Heisler, Lora overweight in the UK are 60% of people Because obese. clinically and 1 in 4 are medical serious to obesity is linked cancer disease, such as heart illnesses need to urgently we and diabetes, obesity tackle to strategies new discover of in the group health improve to alone diet and exercise where people Our discovery been effective. not have that medications new opens the door to appetite control to be developed could health.” and improve
DEDICATED TO THE PURSUIT OF TRUTH UoA 19 DEDICATED TO THE PURSUIT OF TRUTH Overall Page 86 of 323 ANTARCTIC LANDSCAPE LANDSCAPE ANTARCTIC KEEP ICE LOSS INSIGHTS ON THE FORECASTS RADAR University the Scientists from of the the publication to contributed survey detailed of the most results beneath of the landscape to-date researchers that ice thick Antarctic in resource will be a valuable say into draining ice how understanding global to contributes the ocean of the surveys Radar rise. level sea Glacier, Pine Island beneath land revealed snowmobile, by obtained mountainous diverse, a surprisingly The under the ice. landscape published findings, collaborative are Communications, in Nature is the Glacier as Pine Island significant in Antarctica melting glacier fastest 10 up to for accounts and currently rise. level sea of global per cent Item 11.a Annual Report 2018.pdf - Page 19 of 102 CONTROVERSIAL CONTROVERSIAL DRUG PREGNANCY TEST DEFORMITIES SHOWS IN ZEBRAFISH EMBRYOS WITHIN HOURS OF EXPOSURE of a controversial The components birth to linked drug, allegedly caused in the 1960s and ‘70s, defects just fish embryos to deformations new a dose, received they after hours the University at researchers studies by a hormone was Primodos revealed. thousands by used test pregnancy 1958 in the UK between of women who led Dr Neil Vargesson, and 1978. the study published in the Scientific experimentsReports said: journal, “Our shows embryos with the zebrafish the Primodos the effects clearly quite mean This does not have. components do the same in humans of it would saying from way a long are we course, out more carry need to but we that components these into research today still in drugs are they because in much higher cases and in some in Primodos.” found than those doses COMMONLY PRESCRIBED PRESCRIBED COMMONLY LINKED TO MEDICATION STROKE Researchers from the University found found the University from Researchers prescribed routinely medication that including complaints common for and Parkinson’s disease heart allergies, risk of an increased to has been linked published in The Their study, stroke. of Epidemiology, Journal International patients time that the first for showed with anticholinergic’ with drugs treated risk a 60% increased have side effects Senior author of the study, of stroke. said: “This Myint, is the first Professor is a study of its kind, and as stroke we condition, preventable potentially of a new identification the possible feel a have would factor risk modifiable burden on the global impact significant our findings In addition, of stroke. clinicians to relevant particularly are in involved providers and healthcare patients’ and managing prescribing medications.” Overall Page 87 of 323 NEW INSIGHT INTO NEW INSIGHT INTO TO RESPONSE BODY’S KILLER FUNGUS made the University Scientists at help in could that discovery a new kills fungus that a against the fight year every 200,000 people around diseases lung and allergic and causes Their study, in millions of others. identified a published in Nature, mechanism which responds novel part an ‘unexpected’ of the to - one fumigatus fungus Aspergillus complications feared of the most treatments undergoing patients for lead as it can such as transplantation – which infection an invasive to the immune system. then triggers said: Brown Gordon Professor immune our how “Understanding is this invader to responds system ability our to improving to crucial in infected identify its presence to therapies develop and to people this disease.” help us treat Item 11.a Annual Report 2018.pdf - Page 20 of 102 CHEMOTHERAPY PAIN PAIN CHEMOTHERAPY BE EASED BY COULD DRUG, STUDY JETLAG SUGGESTS Painful side effects from cancer cancer from side effects Painful a with be tackled medicines could of jetlag, the effects eases drug that The drug suggests. research University to – appeared as melatonin – known chemotherapy by pain caused prevent the to according nerves to damage with partnership out in study carried The team of Edinburgh. the University condition on a common focused as chemotherapy-induced known pain (CINP), which causes neuropathic touch to tingling and pain sensation be can that temperatures and cold to patients cause enough to severe treatment. limit their chemotherapy published in the Journal Their study, melatonin showed Research, of Pineal pain when CINP had alleviate did not that suggesting developed, already be ascould benefits its potential Professor than cure. rather prevention the study, who co-led Galley, Helen promising, are said: “These results is treatment as melatonin especially conditions. in other safe be to known be will need to work more However, if melatonin know we done before pain in cancer will help prevent chemotherapy.” undergoing patients SILK COULD BE USED SILK COULD DAMAGED REPAIR TO SPINAL CORDS with Oxford in collaboration Working researchers University Ltd, Biomaterials modified silk from that discovered be used could silkworms wild Asian spinal damaged repair to in a strategy published in the Their work, cords. Scientific Reports, journal Nature silk from sterilised cleaned, that found pernyi (AP) silk spinner the Antheraea spinal to suited well properties had act would The modified silk repair. the spinal bridges that as a ‘scaffold’ growth supportingnerve injury cavity, and minimising region a damaged across demonstration Their new inflammation. of a portfolio possesses AP silk that and biochemical material matched repair spinal for suited characteristics towards important step is a potentially of medicine, the repair grail’ the ‘holy Dr system. nervous of the central Huang, still said: “These are Wenlong but they studies bench-based early AP silk has that show to seem certainly suitable especially properties fantastic to forward look and we repair spinal for this further.” researching
DEDICATED TO THE PURSUIT OF TRUTH UoA 21 FOR THE BENEFIT OF OTHERS Overall Page 88 of 323 MEDICAL STUDENTS STUDENTS MEDICAL FORRAISE THOUSANDS CHARITY CHILDREN’S students have medical Aberdeen a North-East thousands for raised a sports hosting charity by children’s and Scotland all for tournament schools. medical Northern Ireland than 1200 students from More Edinburgh, Dundee, St Andrews, Belfast and Queen’s Glasgow schools medical universities’ and Scottish in the annual competed Schools sportsNorthern Irish Medical (SNIMS) in November. tournament football, in The students competed volleyball, basketball, netball, rugby, with and squash badminton hockey, Medical University the Aberdeen and winning overall Society team charity children’s £3400 for raising in the process. Charlie House UNIVERSITY TEAM TAKE TEAMUNIVERSITY TAKE ABERDEEN ON GREAT OF A RUN IN MEMORY FORMER COLLEAGUE took of runners team A 20-strong in memory on a charity challenge and raised colleague of a beloved tumour brain for than £11,100 more part in the took The team research. to run in tribute Aberdeen Great of Director former Sue Richardson, 2018 in May away who passed Finance, with short battle a relatively after running and Sue loved cancer. brain part in the take to been planning had Run until she became Aberdeen Great either the 10K ran Colleagues unwell. and said the latter marathon, or half poignant as the route particularly was campus. in the University took Item 11.a Annual Report 2018.pdf - Page 21 of 102 a major fundraising initiative to raise raise to initiative a major fundraising of the development £4.5 million for research cancer class world a new a develop to the University at team which research cancer for programme lives. countless and improve will save in a range edge the leading at Already the specialisms, cancer of different vital will accelerate team research new is cancer how improve to research and prevented. treated diagnosed, Catholic composers, whose pieces are are pieces whose composers, Catholic Musica series, in the scholarly featured funds raise of the disc Sales Britannica. syndrome, Takotsubo into research for heart ‘broken to referred commonly a person’s where a condition syndrome, similar symptoms physical suffers heart of intense as a result attack a heart to the at Researchers trauma. emotional studies pioneering new are University and possible effects the causes, into fatal the potentially for treatments condition. others For the benefit of UNIVERSITY MUSIC LABEL RAISES FUNDS FORUNIVERSITY MUSIC LABEL FUNDS RAISES SYNDROME’ HEART ‘BROKEN CANCER RESEARCH CYCLE RAISES MORE THAN £25K RAISES CYCLE RESEARCH CANCER The University of Aberdeen’s record record of Aberdeen’s The University CD a new Regis, launched Vox label, vital funds for which will help raise Music Exiled: the University. at research and Dering is a celebration Philips by English exiled two of music by A team of cyclists from the University the University from of cyclists A team 500, raising the North Coast completed support cancer to than £28,000 more The team, in the process. research NHS staff, of University consisting were other partners and staff Grampian round-the- breaking record joined by on the trip Mark Beaumont cyclist world northern coastline. Scotland’s around the trip in eight days completed They cancer hold to stopped and even along evenings and information research to contributed Their efforts the route. Overall Page 89 of 323
Item 11.a Annual Report 2018.pdf - Page 22 of 102
PURSUIT OF TRUTH PURSUIT the future of aquaculture
FEATURE UoA 23 FEATURE Overall Page 90 of 323 “At Aberdeen, we have taken major steps forward forward major steps taken have we Aberdeen, “At method vaccination immersion a new in creating solution which a swim in would the fish whereby inject the need to eliminating the vaccine, contains thousands of immunise to farmers and allowing at a time.” fish the by on the discovery is based The vaccination the fish and enter can that protein of a key team promotes subsequently which an antigen deliver could in the fish and antibody response a natural against them with protection provide therefore and viruses. bacteria that know now “We continues: West van Professor the through a vaccine administer to it is possible defences the natural this promotes and that water whether the yet know we do not of the fish but themprotect to sufficient are antibodies produced completely. in the fully this more will be testing “We could the findings months. If successful, coming the world.” across aquaculture revolutionise of on a range working also are The researchers better predict to farmers which enable tools strike, to is likely of Saprolegnia when an outbreak late. it is too before action take them to allowing Item 11.a Annual Report 2018.pdf - Page 23 of 102 is home to one of the world’s world’s one of the THE UNIVERSITY is home to a group investigating laboratories research largest pathogens - oomycete moulds water of so-called in thousands of diseases destructive - which cause and fish.important species of plants infestans, Phytophthora oomycete, One particular plant destructive as the most has a reputation potato as it blighted in human history pathogen and in Ireland famine widespread to leading crops mould, water the UK in the mid-1840s. Another of millions of fish is a major killer Saprolegnia called in farmed particularly annually, the world, around help bring could research salmon, but University an end. this to van Pieter Professor by led team, The Aberdeen the creation towards major steps has taken West, transform could which vaccine of a fish-friendly the world. around aquaculture be “Fish need to explains: West van Professor and viruses of bacteria range a against protected Currently farms. entire devastate quickly which can fish inject each do this is to to the best way about millions and talking are – and we individually year”. each millions of fish and not is this time consuming only “Not act of the fish, the for pleasant particularly them very makes injecting them with a needle Indeed, a considerable Saprolegnia. to susceptible vaccination of this amount of fish die because approach”. The University of Aberdeen is leading the leading the is of Aberdeen University The fight against which ‘natural born killers’ food supplies potential to devastate have the globe. across the Overall Page 91 of 323 Item 11.a Annual Report 2018.pdf - Page 24 of 102 Over the next decade, around 100 platforms and 100 platforms around decade, the next Over of pipeline on the UK Continental kilometres 7,500 costs with decommissioning, for forecast Shelf are 2050. The industry billion to be £59 to estimated by set target a 35%, by this figure reduce aims to the Oil & Gas Authority. THE UNIVERSITY OF ABERDEEN AND THE OIL a new CENTRE will create & GAS TECHNOLOGY of Centre multi-million-pound Decommissioning challenges and future current tackle to Excellence in and development research with world-class partnership with industry. Decommissioning Centre for Centre Decommissioning Announced Excellence ACHIEVEMENT
FEATURE UoA FEATURE 25 Overall Page 92 of 323 the oil and gas industry, but for decommissioning decommissioning for but industry, gas the oil and the “Over sector. wider energy in the challenges must capitalise sector and gas our oil decade, next to is forecast that market on a decommissioning our world that must ensure £17 billion and we reach develop to chain continues supply Scottish class a recognised become capabilities, its competitive and excellence, champion of decommissioning be can that expertise leading world develop to exported. up investing through “The Government, Scottish City Region Deal, £250 millionin the Aberdeen to to is committed Government, the UK alongside and dynamic this innovative alongside working of Centre a Decommissioning establish to sector chain here supporting the supply to and Excellence in Scotland.” sector GBE, Chairman of private Sir Ian Wood body development and funded economic led Opportunity North East, said: will help in decommissioning “Innovation opportunity and gas for the oil maximise to the Economic to central which is the region, Centre Decommissioning The Strategy. Renaissance a transformational have aims to of Excellence safety, and effectiveness cost on efficiency, impact our and establishing driving industry innovation of decommissioning as a major centre region This will help anchor a worldwide. knowledge in jobs chain with high value supply active globally term.” the long for the region Council of Aberdeenshire leader Cllr Jim Gifford, Joint Committee and chair of the City Region Deal the to is fundamental said: “Decommissioning the see to and I am pleased of our region, future supporting essential another City Region Deal generation which will anchor a new of work strand here. of talent “The research on an established model will build of the sort help deliver which, if it can base of on the cost required savings projected impact. It will a huge will have decommissioning, look to the world for reason another yet provide and excellence for and Aberdeenshire Aberdeen to that a principle is built on “Theexpertise. Centre leveraging of our City the heart Region Deal, sits at as partnering across as well as well knowledge the Centre watching to forward look We sectors. and develop.” grow Item 11.a Annual Report 2018.pdf - Page 25 of 102 is a significant technical technical is a significant DECOMMISSIONING DECOMMISSIONING a valuable and also challenge, and operational and chain companies supply opportunity for the and across in Scotland, developers technology meet domestic to the capability UK, develop to demand.and global of the Centre with companies, In partnership technology and deploy will develop Excellence at the decommissioning effective cost delivers that gas production oil and and during life, end of field decommissioning piece’ including ‘small operations, techniques. and research on the established It will build of the University at capability development decommissioning of in the areas Aberdeen modelling, predictive technologies, of and the economics assessment environmental decommissioning. will be Centre 2018, the open in late to Scheduled located facility, Oceanlab the University’s at based from which stretches corridor, in the Energetica Recruitment will begin Peterhead. to Aberdeen 15 of around months, with a team in the coming expected. initially people said: Minister UK Energy Perry, Claire is of Excellence Centre “This Decommissioning new City the £250m Aberdeen of how example a great support the oil and gas is helping to Region Deal of the Oil & work on the impressive building sector, recently. I visited that Centre Gas Technology and challenge is a global “Decommissioning chain which industry the UK supply opportunity for £23 billion over up to be worth could estimates between collaboration The years. five the next is technology on innovative industry and academia and Strategy Industrial the government’s to central and developed in decommissioning advancements export new to will lead the Centre by supported create helping to UK businesses opportunities for of the future.” jobs high-skilled the high value, said: Minister, Energy Scottish Wheelhouse, Paul be one of the to continues “Decommissioning facing challenges and operational technical biggest of an industry led The creation the North Sea. where of Excellence, Centre Decommissioning to with academia in partnership industry works will help challenges, and future the current tackle for only not advantage the competitive create Overall Page 93 of 323 UNIVERSITY LAUNCHES IN COURSE PRE-MEDICAL SRI LANKA its first launched The University qualification pre-medical ‘in-country’ will students be in Sri Lanka, where award a pre-medical obtain to able city, largest studying in the nation’s Students who complete Colombo. will be Programme the Pre-Medical the University to apply to eligible degree Medical of Aberdeen by which is accredited programme Council Medical the UK General it years two (GMC). Within the next is hoped Sri Lankan students will also study medicine to apply to be able to returning before in Aberdeen their clinical complete Sri Lanka to with whilst graduating training of the University from a degree said: Heys Steve Professor Aberdeen. that the years over found have “We even have never who may people in medicine can a career considered of the very some make on to go need students. All they best medical support guidance, is the appropriate this and this is what and learning, will aim to course pre-med new provide.” Item 11.a Annual Report 2018.pdf - Page 26 of 102 The University won funding for 30 for funding won The University students on the medical additional practices. teaching of innovative back the support from The additional will promote Government Scottish and enable GPs of more the training to professionals healthcare existing will medicine. The initiative enter of GPs involvement include more and and assessment in teaching in deprived GP placements enhanced Steve Professor settings. and rural for said: “This news Heys is fantastic the North East and North of Scotland. a number of spearheaded have We encourage to initiatives innovative a pursue students to medical more graduate as a GP when they career develop to hard worked have and we who may those assist to programmes in a career considered have never apply. to be able to medicine before the fantastic that delighted are We doing with our medical are we work and students has been recognised rewarded. ABERDEEN AWARDED ABERDEEN AWARDED EXTRA STUDENT PLACES MEDICAL Open to all 35 students graduated from a University a University from 35 students graduated help people which aims to initiative of becoming their aspirations achieve while learning flexible via teachers full-time – bringing the total working 130. to the scheme through qualify to The spirit of the PGDE DLITE course Julie mum of two embodied by was in June who graduated Mortimer, the at the course completed having her disabled for same time as caring round- who requires Naomi, daughter as a family and working care, the clock her studies. throughout support worker shone through teach to passion Julie’s nightslate the difficulties and despite She said: “When her workload. balancing such positive I had out on placement, encouraging and very experiences alike. and children staff from feedback and teaching, class being in the I loved child’s each see to rewarding it is truly it and the difference journey learning their life.” to makes BACK TO THE TO BACK FOR CLASSROOM GRADUATE TEACHING JULIE
OPEN TO ALL UoA OPEN TO ALL 27 Overall Page 94 of 323 INSPIRATIONAL YOUNG YOUNG INSPIRATIONAL PEOPLE SHINE AT UNIVERSITY CHILDREN’S GRADUATION More than 70 young people young than 70 More Children’s Aberdeen’s from graduated parents, in 2018. Proud University and academics University teachers, of the Children’s representatives and Aberdeenshire University graduates joined the young Council their achievements help celebrate to Children’s in June. The Aberdeen January up in set was University aged people young enable 2015 to widen their skills and to 14 to seven and a new providing while interests, further and towards route innovative The programme higher education. particularly children, encourages disadvantaged from those to be inspired to backgrounds, and challenges part in new take required are Youngsters activities. of 30 credits least at complete to This their graduation. before learning eight from were graduates year’s Academy, Fraserburgh schools: local Mintlaw Academy, Peterhead Clerkhill Academy, Mackie Academy, South Primary, Rosehearty Primary, Primary. and St Fergus Primary, Park Item 11.a Annual Report 2018.pdf - Page 27 of 102 STUDENTS FROM LESS LESS FROM STUDENTS AND ADVANTAGED RURAL BACKGROUNDS GIVEN MEDICAL OPPORTUNITY SCHOOL (G2M) is The Gateway2Medicine the gives that a pioneering course pupils secondary promising most advantaged and less areas rural from a unique opportunity to backgrounds Aberdeen. at study a medicine degree the by The G2M is a joint initiative and North of Aberdeen University (NESCOL) College East Scotland for barriers down break which aims to advantaged less from people young in Scotland, areas remote or more of subject availability such as a lack opportunities. experience or work on the All 21 students who enrolled studying medicine at now are course with a further 20 following Aberdeen on the 2018 intake. in their footsteps of the Head Heys, Steve Professor School of Aberdeen’s University & Sciences of Medicine, Medical widening believe Nutrition said: “We in medicine is key, participation those for inequality address to both and geographically social from create and to situations disadvantaged all benefits that environment a diverse in practice our students and medical Scotland.” The University welcomed the first the first welcomed The University Qatar in Doha, its campus students to of 130 students A total in September. study to enrolled of 14 nationalities – 60% of them degrees business UK is the first The University women. campus a dedicated have to University mainstream offering in the Gulf State is campus and the Qatar degrees educational more provide to intended and men who women opportunities for to the chance have otherwise not may in higher education. participate as the launch at described It was of the in the history milestone ‘a The campus of Aberdeen’. University commitment is part of the University’s learning a transformational provide to citizens in countries to experience be opportunities these cannot where as many allowing granted, for taken benefit from to as possible people educational Aberdeen the world-class experience. UNIVERSITY FIRST WELCOMES TO STUDENTS CAMPUS QATAR Overall Page 95 of 323 As Scotland looks to address challenges challenges address to looks As Scotland initiative new a recruitment, in teacher to teachers is helping would-be well- a barrier preventing overcome entering from candidates qualified has The University the profession. Online Access a pioneering introduced to who want those allow to course in qualifications pre-requisite gain teach course, English. The flexible and Maths and start or end dates which has no set or slowly as quickly be completed can those as the student wishes, allows in careers successful enjoyed who have or the literacy gain industries to other access gain skills needed to numeracy in Diploma Graduate a Professional to The School of (PGDE) course. Education helping experienced is also Education and Education Further from teachers recognised gain to countries other while qualifications teaching Scottish in partner through schools working in Educational PG Certificate a new Studies. INNOVATIVE ONLINE INNOVATIVE BREAKING COURSES FOR BARRIERS DOWN FUTURE SCOTLAND’S TEACHERS Item 11.a Annual Report 2018.pdf - Page 28 of 102 here from college I was delighted to delighted I was college from here the that the fact and be accepted, the summer school has held University why it has been the right me has shown the much over so learned decision. I’ve though it has and even weeks past two and ready prepared I feel been intense running.” hit the ground to HE Progression Middleton, Dr Sally of the University at Manager Routes the summer helped deliver Aberdeen, colleagues alongside programme school Engineering. the School of She from said: great “The has made University we in the number of routes advances to students who wish college to offer with articulation level, degree study to with colleges in partnership routes between The transition Scotland. across be daunting, can and university college the summer held is why we and that their students for prepare to school in life studies and university academic in general.” The University hosted its first its first hosted The University Summer School Engineering Transitional life for graduates college prepare to The of Aberdeen. the University at on focused summer school two-week computer - mathematics, areas key four and science materials programming, life. university into integrating one of the Drummond, was Matthew 19 students on the summer school, at he studied Engineering Systems transitioning and was College Moray and of an Electrical year the third into Engineering MEng degree. Mechanical was the summer school He said that lies what him for in preparing invaluable come to applied “When I first ahead: WIDENING ACCESS WIDENING ACCESS SEAL GETS INITIATIVE FROM OF APPROVAL GRADUATES COLLEGE
OPEN TO ALL UoA 29
OPEN TO ALL
R Overall Page 96 of 323
E
T
R A
H
C E R C E U G E N D Three more University departments University more Three Sciences, of Medical - the Institute and the the School of Geosciences received School of Engineering have Award. Bronze the Athena SWAN Charter Athena SWAN HE’s Advance the to commitment recognises in equality of gender advancement and support professional academic, departments and and recognise roles, identify to action institutions taking career to barriers and overcome all. The University for progression in improvement significant has made of its staff, conditions the working Athena SWAN the original and since in 2012 it has enhanced application various launching by conditions these and including; making equality initiatives staff; all for mandatory training diversity (parents, networks several introducing menopause, disability, women, senior LGBT); students and postgraduate staff an promotions ensure and striving to a balanced have committees selection representation. gender UNIVERSITY SECURES THREE NEW ATHENA AWARDS SWAN Item 11.a Annual Report 2018.pdf - Page 29 of 102 The University became one of only of only one became The University institutions higher education three support the it for award win a top to caring students who have to provides the Carers receiving responsibilities, Student Going Higher for Trust’s In 2017 Award. Recognition Carers its Student introduced the University which and Action Plan, Policy Carers with in consultation developed was range a and offers Trust the Carer’s the during both carers of support to and throughout process application their studies. Students from some of Scotland’s of Scotland’s some Students from benefitted from areas deprived most halls in the University’s place a free In year. their first for of residence up the offer students took 33 2017-18, Feedback accommodation. of free and positive very was the scheme for benefited one student said: “I greatly burden the financial as it reduced year my first for of accommodation one of the pressures away and took home and to from away of moving University.” FREE ACCOMMODATION UNIVERSITY WITH RECOGNISED AWARD CARERS The University is part of a ground- The University public engagement breaking to Science, Block Cell programme, to learning science informal deliver of the Public Members prisoners. and team with Research Engagement have staff a number of academic HMP Grampian visits to regular made with sessions host to in Peterhead including of topics on a range prisoners and health smoking and vaping, of exercise nutrition, the importance conditions, chronic and managing medicines and archaeology. building and male both of 64 prisoners, A total which part the scheme in took female, and is funded year next will continue staff University Trust. the Wellcome by help to event a family organised also in of prisoners the children engage learning. science CELLBLOCK SCIENCE CELLBLOCK Overall Page 97 of 323 Item 11.a Annual Report 2018.pdf - Page 30 of 102 archaeological haul archaeological Returning Alaska’s
FEATURE UoA 31 FEATURE Overall Page 98 of 323 “The long-term goal, however, has always been to has always “The however, goal, long-term has and that belong they where them to return with the opening of the new possible become Center.” and Archaeology Culture Nunalleq is also school former in a converted The centre the artefacts will allow that a laboratory home to on. now from locally be preserved to “ThisDr Knecht added: is one of the largest Alaska, site a single from recovered ever collections and is of region Arctic the whole even and perhaps than for more accounts as it now significance huge about pre- know we of everything 90 per cent groups one of the major indigenous Yup’ik, contact in North America. with the be working to delighted are “We vital these that ensure to community Quinhagak the in be shared can their lives to related artefacts belong.” they place on the project worked also Hillerdal Dr Charotta share moment to a wonderful it was and said that people. with local in the opening of the Center of this size now of artefacts a collection have “To which from of the community in the ownership fantastic and it was unusual is very originate they the at their place and taking them returning see to center. culture of the new centre of digging but finished this phase now have “We with The Qanirtuuq closely work to will continue develop and to Corporation Village Native help to be used which can materials educational local to accessible work our archaeological make children.” who worked resident a Quinhagak Carter, Crystal said: “The the summer, over the team alongside our people’s digging and discovering archaeologists a bridge helped us creating definitely have history of life, customs of life, our way to link back to and stories discovery, With each of life. and rules generations. to generations from unfold answers of on many values passed have Our ancestors us and how before had they’ve what through life available was that of everything use made they the lands to respect had us they them. Tells to shall We skies; life. creatures, waters, plants, animals, our from inherited we’ve what for unify and stand ancestors.” Item 11.a Annual Report 2018.pdf - Page 31 of 102
ARCHAEOLOGISTS FROM THE UNIVERSITY FROM ARCHAEOLOGISTS painstakingly than eight years spent more have objects that everyday and preserving recovering and to survive to used people Yup’ik indigenous before the clock against – in a race life celebrate storms winter raging and melting permafrost site. archaeological the Nunalleq reclaim their finds centuries, four than more back Dating needles, tattoo ivory masks, ritual include wooden in preserved all teeth, a belt of caribou and even new The 2018 dig offered condition’. ‘extraordinary with architecture pre-contact Yup’ik insights into building unknown previously identifying the team inside the homes such as from and items structures of grass. made holders lamp early from staff and museum This summer archaeologists with The Qanirtuuq worked also the University put the finishing to Corporation Village Native culture at a new exhibition the first to touches – the largest the artefacts which will enable centre be - to Alaska from recovered ever collection origin. of in their place displayed of Aberdeen, the University Dr Rick Knecht, from “The explains: unique the project who is leading artefacts mean region in this arctic conditions have old centuries than four more which are of detail. level an unbelievable retained made and mats baskets grass uncovered have “We but when we the earth walked when Shakespeare weaving the grass them out of the ground take have and we colour of its green a trace still retains of the and intricacy the variety been amazed by patterns.” woven the however, the earth, from removed Once it and quickly deteriorate begin to artefacts Dr Knecht and his team that this reason is for the to than 60,000 items more transported professional where of Aberdeen, University on treatments preservation oversaw conservators the items. to impossible it was the project, began “When we and the items on site work conservation conduct in still covered some transported, were recovered Aberdeen. to earth, A huge collection of artefacts ‘frozen in time’ which offer a offer A hugewhich in time’ ‘frozen of artefacts collection into the indigenousunique insight of Alaska have people of Aberdeen. University to the region by the been returned Overall Page 99 of 323 and 15th overall in the Institution of and 15th overall (IMechE) Engineering’s Mechanical Silverstone at event Student Formula track. race during the KTP resulted in the launch ofthe launch in during the KTP resulted Lifting System the Aubin Underwater Decommissioning the National (ULS) at – a partnership of Excellence Centre and the Oil University the between - (OGTC) Centre and Gas Technology from Neilson, Richard year. this earlier of School of Aberdeen’s the University Engineering, on the development. led He said: “The of Aberdeen University of its the strength for is renowned leading which are industry partnerships, of technologies the development to gas benefit the oil and directly that with Aubin Our collaboration industry. of how is just one example Group drive with industry to working are we in the sector.” innovation forward University of Aberdeen Pro-Chancellor, Pro-Chancellor, of Aberdeen University Iain Professor Reverend the Very with a honoured was Torrance, Honours Year’s Knighthood in the New the honour for given list. He was and Higher Education to services Theology. Item 11.a Annual Report 2018.pdf - Page 32 of 102 The Rowett Institute’s Professor Lora Heisler was named was Heisler Lora Professor Institute’s The Rowett Scientificthe 2018 Outstanding of as the recipient Diabetes the American from (OSAA) Award Achievement a in identifying of her research in recognition Association 2 diabetes. type improve to type of medication new UNIVERSITY PRO-CHANCELLOR HONOURED HONOURED UNIVERSITY PRO-CHANCELLOR WITH KNIGHTHOOD ABERDEEN ACADEMIC RECEIVES PRESTIGIOUS PRESTIGIOUS RECEIVES ABERDEEN ACADEMIC ASSOCIATION DIABETES AMERICAN FROM AWARD A collaboration between the University University the between A collaboration and Aberdeenshire- of Aberdeen Group firm Aubin oil and gas based Innovate by as ‘outstanding’ rated was Agency. Innovation UK, the UK’s Partnership Transfer The Knowledge an on developing (KTP) focused as a solution lifting system underwater and costly challenging technically to commissioning maintenance, subsea The operations. and decommissioning out carried and development research TOP TEN FINISH FOR TAU FINISH FOR TAU TEN TOP SILVERSTONE AT RACING team Racing TAU The University’s its strength show to continued ten of a majortop finishing in the UK for competition racing motor global than More in a row. year the second the world around from 100 teams part competition, in the annual took design, students to which challenges seat a single and race manufacture were team and the TAU car, racing ninth in the UK,2nd in Scotland INDUSTRY RESEARCH COLLABORATION RATED RATED COLLABORATION RESEARCH INDUSTRY UK INNOVATE BY ‘OUTSTANDING’ Awards and Awards achievements The Rowett Institute’s Dr Wendy Russell Dr Wendy Institute’s The Rowett and Drink Scientist named Food was and Drink the Food by of the Year (FDF). Federation HEART MURMUR MURMUR HEART MEDICAL WEBSITE BAGS AWARD STUDENT ABERDEEN ACADEMIC ABERDEEN ACADEMIC NAMED FOOD AND DRINK OF THE YEAR SCIENTIST Aberdeen medical student Duncan Ritchie student Duncan medical Aberdeen Medical Prize for Linton the Sidney won the Royal from in Cardiology Education an innovative Society of Medicine for murmurs. up about heart he set website Duncan by developed initially was The site tool as a training year of his first the end at students and covers medical other for of aspects heart about a wide range they of what including audio files murmurs and quiz questions. Professor like sound to said: Denison “Congratulations Alan are We award. on this fantastic Duncan innovative implement to keen always methods and this is a great teaching of one of our students using his example a subject of and experience initiative own help many can that a resource create to come.” to years for
AWARDS AND ACHIEVEMENTS UoA 33 AWARDS AND ACHIEVEMENTS Overall Page 100 of 323 University student Kim Beattie won student Kim Beattie University mini in the double medal a silver Trampoline the FIG at (DMT) trampoline in Championships World Gymnastics The engineering student and Bulgaria. as part competing was sports bursar, at GB team DMT of the four-strong Her performance in Sofia. the event Student Trampoline in the Scottish where in February, Open (SSTO) as part of Aberdeen she competed saw Club, also Trampoline University pro-elite ladies in the first her come the highest and record category of the competition. score trampoline student in the School of Geosciences, the support through who is receiving develop Zone to ABVenture University’s was RAB-Microfluidics the business. the champion at overall crowned also Cup 2017, Startup World University other 70 beating in Copenhagen, held prize in the the top take to entrants category. High-Tech competition’s the Polish Foreign Ministry’s inaugural inaugural Ministry’s Foreign the Polish the best book for competition history of Polish knowledge promoting in 2015 language published in a foreign History -2016. His book - The Oxford 1, The volume of Poland-Lithuania Union, Making of the Polish-Lithuanian received previously - had 1385-1569 prize by Polonorum Historia the Pro a top Association, Historical the Polish prize. literary Item 11.a Annual Report 2018.pdf - Page 33 of 102 Dr Caroline Barelle was named the winner of the ‘Rising named was Barelle Dr Caroline Life Scotland’s at category Talent’ Extraordinary Stars: Elasmogen founded Dr Barelle Awards. Annual Sciences as a the company established and has rapidly in 2016 Ltd late-stage, and profile with an international biotech global a “sight-saving” make to positioned products pre-clinical in ophthalmology. difference KIM’S ON A HIGH AFTER KIM’S TRAMPOLINE WORLD CHAMPIONSHIP SUCCESS ABERDEEN ACADEMIC RECEIVES PRESTIGIOUS PRESTIGIOUS RECEIVES ACADEMIC ABERDEEN AWARDS SCIENCES LIFE SCOTLAND’S PRIZE AT The moment Kim Beattie (far left) and left) (far The moment Kim Beattie out they found GB teammates her team silver. won had The Polish Government presented a presented Government The Polish the University from historian leading honouring his work with an award Professor history. on the country’s prize in first received Robert Frost An award-winning University startup was University An award-winning help fund £100,000 to nearly awarded product. of its new the development £95,771received RAB-Microfluidics Innovation UK, the UK’s Innovate from ‘lab-on-a-chip’ help develop to Agency, dramatically aims to that technology for costs and repair maintenance reduce was equipment. RAB-Microfluidics heavy PhD a former Alabi, Rotimi by formed HISTORIAN RECEIVES NEW HONOUR FOR WORK WORK NEW HONOUR FOR RECEIVES HISTORIAN ON POLISH HISTORY FUNDING AWARD FOR FUNDING AWARD UNIVERSITY STARTUP Two leading academics from the from academics leading Two inducted were of Aberdeen University Society of Edinburgh. the Royal into Sutton Roland Murray, Alison Professor the University’s at Chair of Radiology Sciences School of Medicine, Medical Joerg and Nutrition, and Professor the in Chemistry at Chair Feldmann, and Computing School of Natural among 66 distinguished were Sciences, RSE become to elected individuals in February. Fellows UNIVERSITY ACADEMICS UNIVERSITY ACADEMICS ROYAL INTO INDUCTED OF EDINBURGH SOCIETY Professor John Speakman was recognised recognised was John Speakman Professor expert in animal leading as ‘the world’s elected when he was expenditure’ energy one of the He was Society. The Royal to across from eminent scientists 50 most recognised the UK and Commonwealth with the honour in 2018. PROFESSOR JOHN PROFESSOR SPEAKMAN BECOMES OF THE ROYAL FELLOW SOCIETY Overall Page 101 of 323 She also launched the University’s new Centre for for Centre new University’s the launched She also in which will be based Research, Health Women’s Hospital Family million Baird £167 the forthcoming health the Foresterhill within and Anchor Centre campus. major fundraising is one of two The centre further strengthen to the University by initiatives and health women’s both in expertise Aberdeen’s of centres world-class create to research cancer excellence. has championed the transformation The University building decades, for care health of women’s of Midwifery, of Regius Professor upon the legacy pioneering vision whose Baird, Sir Dugald Professor and social health and integrated of interdisciplinary in services health reproductive transformed care the Aberdeen He established the city in the 1930s. (AMND) which Databank and Neonatal Maternity the world. studies around still supports research inspiration is taking on, the University Eighty years programmes’ and innovative his ‘far-sighted from Women’s for Centre the Aberdeen for with plans Research. Health of the will support the work Centre The Research which will be located Hospital Family Baird new maternity, and offer campus, within the Foresterhill surgery, and breast screening breast gynaecology, The medicine services. and reproductive neonatal, birthing innovative house will also hospital new of the art with state along suite units and theatre facilities. and teaching research Item 11.a Annual Report 2018.pdf - Page 34 of 102
educational educational CREATING TO A COMMITMENT of the the heart lies at women opportunities for campus international first of Aberdeen’s University Dr Her Excellency by underlined a fact in Qatar, when Al-Thani bin Nasser Sheikha Aisha bint Faleh the University’s at speak to Aberdeen she visited Conference Day Women’s International annual this year. earlier of the AlFaleh and founder As Chairperson partner in the the University’s Group, Educational to Shiekha Aisha is behind an initiative project, opportunities for higher education more provide nationals. Qatari 120 students have year, its opening last Following the campus at degrees study business to enrolled female. in Doha, the majority of whom are such opportunities of providing The importance visit ever Shiekha Aisha on her first outlined by was under the theme she spoke where Aberdeen, to for ‘Press Day, Women’s International of this year’s Progress’.
on health and education on health Making a Making
FEATURE UoA 35 FEATURE Overall Page 102 of 323 The centre will build on, and take to the next to on, and take will build The centre underway already research the oncology stage, cancer, including breast in areas the University at and aims to cancer and cervical cancer urological such as lung, areas key in other activity increase cancers. and colorectal prostate further as develop to Aberdeen enable It will also further enhance and to trials clinical vital a hub for diet and by played of the role understanding factors and environmental nutrition and early-life the disease. of in the development of the School of Head Heys, Steve Professor and Nutrition at Sciences Medicine, Medical is surgeon cancer and a breast the University research the oncology for plans spearheading “The has internationally He says: University team. of cancer in many areas expertise renowned a new it to take us to but this will enable research be to drugs new opportunities for and create level time. the first for here used as a centre “The Aberdeen establish vision is to of capable research, oncology world-class for and best academic the very and retaining attracting excellent to only not lead which will staff, clinical pioneering research but to in the area care patient trials in clinical of participation and high levels impact.” a global which will have Item 11.a Annual Report 2018.pdf - Page 35 of 102 Professor Maggie Cruickshank, who is leading the Cruickshank,is leading who Maggie Professor a ‘unique offers of the Centre creation says project, clinical pioneering today’s embed opportunity to care.’ medical alongside research strong the University’s established Baird “Dugald epidemiology and obstetric in reputation strength to strength from has gone Aberdeen family fertility, into important research leading and breast cervical health, planning, maternal and health postmenopausal screening, cancer osteoporosis a vital plays health women’s that recognised “Baird with of their children health in the future role factors lifestyle nutrition and other poor maternal come. to on generations impacting develop will be to “The of the Centre mission and to disease of understanding ways innovative women and for caring of ways identify effective Scotland north-east across only their babies not the globe.” but across Women’s for Centre the Aberdeen to In addition launched has also the University Research, Health a establish to campaign a £4.5 million fundraising research. cancer for centre world-class has an established which already The University, forms of the many against in the fight record track brightest the world’s attract to is seeking disease, work. pioneering research lead minds to the support of Scottish attracted It has already charity Friends of ANCHOR, which has committed the project. £1 million for raise to Overall Page 103 of 323 TAPPING INTO - AND INTO TAPPING - THE PAST SWIPING THE BENNACHIE AT COLONY of a group into research University their homes on who made crofters on Bennachie slopes the inhospitable underpinned in the 19th century guide app to a new of the creation the north-east around visitors 150,000 around landmark. While each made are Bennachie visits to of of the stories aware are few year, – the families Colony the Bennachie in lived the ground, who worked were cases, and, in some the houses were rents land as off the forced laird. the local on them by imposed app Trail Colony Bennachie The Digital and were their houses where shows a living from made the crofters how hillsides. a mix It includes the sparse history and archival of archaeology music, poems, a with stories, along also can Users recipes. quiz and even the inside of one of the croft explore reconstructions digital and see houses The app landscape. of the crofting work the on the significant builds in recent has undertaken University of the archaeology uncover to years and archival its oral record the Colony, and engage volunteers train history, and the public.schools Those with an appetite for Aberdeen’s Aberdeen’s for with an appetite Those the diet how explore now past can over has changed of its inhabitants of with the launch the centuries on based Trail the Hungry Histories The trail research. University innovative of a successful the culmination was based programme public engagement who are of archaeologists on the work material bones and other investigating the Neolithic period to back dating offer can insights they what see to and even diet in health, changes into last the over in Aberdeen immigration thousand years. Item 11.a Annual Report 2018.pdf - Page 36 of 102 especially in Scotland, in the 1930s. The in the 1930s. in Scotland, especially than 3,000 more contains collection plays, and 300 folk songs traditional folk customs, tunes, as fiddle as well tales and traditional games children’s been added It has now and games. Memorial Williams the Vaughan to archive, digital comprehensive Library’s it can where resource folk an essential the families, by accessed be freely so where and places communities much of it originated. Enriching A renowned folk collection featuring featuring collection folk A renowned been curated had that Doric ballads was 90 years over for in America an online to home’ ‘back brought by led a project thanks to audience, the from Academics the University. Institute Elphinstone University’s of the collection and edited catalogued a Harvard- Carpenter, James Madison a wealth who collected scholar trained and folk ballads songs, of traditional in Britain, performers from plays CLASSIC FOLK COLLECTION RETURNS ‘BACK HOME’ RETURNS ‘BACK CLASSIC FOLK COLLECTION A NEW AUDIENCE TO FEEDING THE CITY’S APPETITE FOR THE PAST FEEDING THE CITY’S cultural life
ENRICHING CULTURAL LIFE UoA 37 ENRICHING CULTURAL LIFE Overall Page 104 of 323 The University’s May Festival Festival May The University’s with its a sunny weekend enjoyed music, science mix of literature, visits. 8,900 and sport attracting The University of Aberdeen’s of Aberdeen’s The University in the performed Chamber Choir – the music festival largest world’s - as part of the BBC BBC Proms Choir in July. Youth Proms The University’s Paul Mealor teamed Mealor Paul The University’s Sir and broadcaster up with writer a joint create to Robinson Tony The Three entitled composition which a Christmas story Ships, of the a unique interpretation offers performed It was nativity. traditional of Celebration studded a star at in London which also event Carols actor Game of Thrones featured andsongwriter and singer, Iain Glen OBE. “It all Fiona Kennedy broadcaster conversation,” out of just one came away blown “I was explained. Sir Tony of In the interpretation Paul’s by the 2016 concert, at Midwinter Bleak chatting were we and afterwards that pieces few are there about how in the drama engage us to challenge could I thought if we of the nativity. gap – fills that that something create but issues day modern addresses that sing the us the opportunity to gives by and be dazzled love, all we carols - musicians of great the performance really be something would then that that a piece was The result special.” of the nativity’s some together draws often which are ideas, underlying of the miraculous in favour overlooked Contemporary of the story. nature such as division, the plight ofissues are news spin and fake media refugees, Ships as part of The Three explored all THE THREE SHIPS THE THREE SHIPS REINTERPRETS TRADITIONAL NATIVITY Item 11.a Annual Report 2018.pdf - Page 37 of 102 One of the world’s leading leading One of the world’s The music festivals, traditional Convention, Fiddle North Atlantic the by created which was in 2001 will Institute Elphinstone in delight audiences to returned successful following Aberdeen and Ireland stints in Canada, Northern Ireland. the work and their findings were were and their findings the work Magazine published in The Burlington on fine arts. journal Mr – the leading be thought to often Gash said: “It was is, by that – school the Canaletto from someone pupils or one of Canaletto’s I and however his style, imitating a it was suspected long have others been have we and now Canaletto real from this. It is clear confirm to able as in the and the style, the technique and composition, of forms language an and is in fact a Canaletto this is that of the highest quality. work autograph put the to under way now are Plans on items related painting and other public display. Castle by Irish President Michael D. D. Michael Irish President by Castle Dr The University’s Higgins in May. Michael Barr and Professor Colin among 100 leading were Brown the world around from historians The Cambridge to who contributed the which presents of Ireland History 600 to – from – or stories Irish story comprehensive Its four the present. the latest bring together volumes within setting Irish history scholarship, imperial European, Atlantic, broader who Dr Barr, contexts. and global concerning a chapter to contributed of Catholicism, ‘The re-energising said: “I hope this will make 1830-1880’ the to an important contribution as a and act of Ireland history ongoing investigation.” future to springboard One of the world’s best known best known One of the world’s music, Handel’s of classical pieces in Doric for heard was ‘Messiah’, the first time - a unique musical Professor between collaboration and Aberdeenshire Mealor Paul Hay. Gordon author and translator CONTRIBUTION OF ABERDEEN HISTORIANS TO A TO OF ABERDEEN HISTORIANS CONTRIBUTION IRISH BY WORK’NEW ‘LANDMARK RECOGNISED PRESIDENT University academics played a key a key played academics University four of a new in the creation role as the most described work volume and authoritative comprehensive attempted. yet of Ireland history Thomas Bartlett, Professor by Edited the of History, Emeritus Professor Dublin at launched was survey landmark A painting gifted to the University of the University to A painting gifted identified as a £2 million was Aberdeen artist Italian a prominent by work it after than 150 years - more Canaletto in History Senior lecturer donated. was of Aberdeen, the University of Art at Canaletto John Gash, and leading identified Beddington Charles expert CANALETTO YOU BELIEVE IT? PAINTING CONFIRMED CONFIRMED IT? PAINTING BELIEVE YOU CANALETTO ARTIST FAMOUS TREASUREAS HIDDEN BY Overall Page 105 of 323 Item 11.a Annual Report 2018.pdf - Page 38 of 102 STATEMENT
STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL UoA STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL 39 Overall Page 106 of 323 administrative arrangements, financial health, well- health, financial arrangements, administrative with and students and, in association being of staff high maintaining and establishing for the Senate, and probity. conduct of academic standards Acts define the powers (Scotland) The Universities the and the Senate Court, of the University functions clear of which has each Council, General and within the governance and responsibilities The business. of the University’s management with the administration is charged Court University of and property of the revenue and management any review to has the power and the University, It is responsible on appeal. decision of the Senate and control of internal system the University’s for which The Senate, effectiveness. its reviewing for staff academic elected officio and of ex consists and the regulation for and students, is responsible and student discipline of teaching superintendence Council The General research. promoting and for (Scotland) the Universities by established was consideration into take Act to 1858 with the right well-being and prosperity the questions affecting of the University Graduates of the University. are staff of University categories and certain Council. of the General members automatically virtue of charity by is an exempt The University (Scotland) Investment the Charities and Trustee of the with the Office Act 2005, and is registered under number SC013683. Charity Regulator Scottish the by principally is regulated The University under a Financial Council Funding Scottish with complies University The Memorandum. funding out in the set of the grant conditions has Council Funding The Scottish arrangements. with each Agreements Outcome developed working institutions are that ensure to university priorities. Government’s in support of the Scottish on its regularly report to is required The University ensure to outcomes, agreed against performance of grant. meet conditions to it continues that Body Governing of the with the provisions In accordance Acts and the Higher (Scotland) Universities Act, the (Scotland) Governance Education Ordinance. out by is set of Court composition and has a majority of 25 members consists Court by as recommended of independent members The of Good HE Governance. Code the Scottish on is listed during 2017/18 of the Court membership 52. page of Primary a Statement has adopted Court a undertakes Responsibilities and routinely against of its effectiveness review wide-ranging the by is elected The Rector guidance. sector of president student body and is the ordinary Item 11.a Annual Report 2018.pdf - Page 39 of 102 Principle 7 ‘The Chair’: The statutory position 7 ‘ThePrinciple The statutory Chair’: cannot Court mean of the Rector and powers of the with the description consistent be fully of the Chair in the Code. role Operating 5: Court’s Principle Guidelines to Committee) the Finance to (equivalent Board This is majority. an independent have does not of the 2017 Code. a requirement however, not, as the same reasons For Roles’: 6 ‘Key Principle 7. Principle to with regard above noted to required are 44: Revisions Requirement include provision to of Court orders standing businessdecisions and declaring rescinding for by place be in to This is expected reserved. 2018. December has Senate 19: The University Requirement a limit on the number introduce to been asked Assessor Senate that of periods of office This is expected serve. may of Court members 2018. December by be in place to The University of Aberdeen is committed to the to is committed of Aberdeen The University relevant governance of corporate highest standards This summary sector. education the higher to has the manner in which the University describes Code in the Scottish out set applied the principles (published Governance of Good Higher Education of Good Higher Code Scottish A revised 2013). July published in October was Governance Education Academic the 2013 Code. 2017 which replaced for year a transitional is considered 2017-18 year 2017 Code. with the compliance complied the University In the opinion of Court, of the and provisions the principles with all of Good Higher Education Code 2013 Scottish of with the exception the year through Governance the following: 1. 2. and with the principles complied The University of Good Code of the 2017 Scottish provisions the end of July by Governance Higher Education of: 2018 with the exception 1. 2. 3. and Regulation Governance Constitution, on Charter Royal by formed was The University Scottish 1495 and is one of the four 10 February of the University Court Ancients. The University with perpetual is a body corporate of Aberdeen The University seal. and a common succession of and framework powers its status, derives Acts (Scotland) the Universities from governance under made the Ordinances, 1858 - 1966 and by In addition, of Court. Acts, and Resolutions these of the Higher the requirements is subject to Court is Act 2016. Court (Scotland) Governance Education and body of the University governing the executive direction, and strategic its mission for is responsible Overall Page 107 of 323 All of these Committees are formally constituted constituted formally are Committees All of these on the University available of reference with terms Committees key of these The membership website. Where 52. on page is listed during 2017/18 delegated have Committees these appropriate, decisions on certain take to Court authority from reported formally and major decisions are matters to power delegates Court when Similarly, Court. to member senior one other least with at the Principal such meetings, decisions between take to of Court Court. to reported formally decisions are and development of its strategic In respect recommendations receives Court responsibilities, The Board. the Operating from and advice includes four composition Board’s Operating Court by appointed independent members, Board The Operating its members. amongst from the University’s Court to recommends alia inter and monitors budgets and capital revenue annual budgets. the approved to in relation performance Committee and Nominations The Governance of on matters Court advise to role has a standing reviews on its behalf, conduct and to governance The Committee governance. of the University’s annually of effectiveness a review undertakes of Code the Scottish against benchmarking through and through Governance Good Higher Education The of governors. questionnaire appraisal an annual considering for has responsibility also Committee membership in Court vacancies for nominations sub- of Court membership in the and vacancies has a majority of The Committee committees. the by chaired but is not independent members independent another but by Senior Governor remit and the which reflects member of Court, of a that beyond extending of the Committee role of governance matters into committee nominations of the the Convener enables and which also of independent the role undertake to Committee of Code in the Scottish described intermediary Item 11.a Annual Report 2018.pdf - Page 40 of 102 Court. The current Rector has opted to exercise the exercise to has opted Rector The current Court. the statutory that recognises Court preside. right to is president as the ordinary Rector of the position of the of the role with the description consistent not of Good Higher Code in the Scottish Chair contained appoints a Court However, Governance. Education the wider performs who currently Senior Governor, the University represents of Chairman and who role and Chairs of Scottish of the Committee meetings at of in matters Governor as the leading act to internally of the Senior The role management. and governance the Scottish by is recognised in this regard Governor a Rector’s has adopted and Court Council, Funding and of Rector roles respective define the to Protocol an externally undertook The Court Senior Governor. in 2016/17 and of its effectiveness review facilitated in 2017/18. procedures to revisions has implemented of Interests a Register maintains The University of senior and of members of Court of members on the University’s is available which management, routinely are individuals In addition, website. a Court to in relation any interest declare to asked and any significant item agenda and Committee of the Senior commitments the external to change and the Governance to be reported would Governor Committee. Nominations and encouraged invited are of Court Members in governor participate to intervals regular at internally both organised events development such as the Leadership organisations and through Higher Education. for Foundation Strategy Corporate the University’s approving for is responsible Court on the delivery progress and monitoring Plan Strategic The Financial objectives. strategic of the Plan’s on the University’s 65 reports 60 to on pages Review against and progress during 2017/18, performance 7. on page is provided targets strategic of the Court Committees Key but much year, times each four least meets at Court by instance in the first is addressed of its work the Board, the Operating in particular, Committees, and the and Nominations, Audit, the Governance Committees. Remuneration
STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL UoA STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL 41 Overall Page 108 of 323 Court sets and approves annually the University’s the University’s annually and approves sets Court Corporate the reviews and routinely risk appetite, Risks. of Strategic Register reports detailed considers The Audit Committee together auditors, and external the internal from of improvement the for with recommendations and risk control of internal systems the University’s management’s University alongside management, The Audit plans. and implementation responses of the review is one of high level role Committee’s risk management control, internal for arrangements investigate It has authority to money. for and value It also of reference. terms within its any matters the Scottish from reports and considers receives the University’s affect as they Council Funding the regulatory to adherence and monitors business attend executives senior While requirements. as necessary, of the Audit Committee, meetings The Committee. of the members not are they on a presentations receives regularly Committee in or developments business of University area key legislation. or relevant policy higher education for process has an ongoing The University the and managing identifying, evaluating of to the date up risks significant University’s and accounts. reports of the annual approval with the align has been designed to This process in the UK directors for guidance control internal rather manage It is designed to Code. Corporate business achieve to the risk of failure than eliminate and not reasonable provide only and can objectives misstatement material against assurance absolute reviewed regularly is This process loss. or financial with the body and accords the governing by the to as applicable guidance control internal sector. higher education of the the provisions endorses fully The University Memorandum. Financial Council’s Funding Scottish firm of Internal an external retains The University years five every least at appointed Auditors The process. tendering a competitive through process such a tendering undertook last University it appointed of which during 2013/14 as a result from with effect Auditors firm of Internal a new on receives, Court 1 August 2014. The University audit activity, on internal basis, a report an annual of the including an independent assessment of the University’s and effectiveness adequacy including risk control, of internal systems to year For the control. and financial management that concluded audit report 2018, the internal 31 July satisfactory generally were systems the University’s required. improvements with some its Policy through recognises The University Disclosure on Public Interest and Procedure of legitimate the raising that (Whistleblowing) Court or of students, members staff, by concerns Item 11.a Annual Report 2018.pdf - Page 41 of 102 Good HE Governance. The Committee is cognisant is cognisant The Committee Good HE Governance. in its membership have to Court for of the need and mix of skills, experience an appropriate of a Statement has adopted Court diversity. which within its membership, Diversity on Intent and maintaining of achieving includes a goal of a minimum of 25%, representation female the longer 50% over achieve to with aspirations female were of members 44% 2017/18, In term. independent the appointed while male, and 56% balanced. gender was membership the determines Committee The Remuneration of the of service and conditions remuneration including the Principal. The staff, senior most has a majority of independent Committee non- executive includes two but also members of the Court and the President of members staff the appropriate, Where Association. Students’ It further obtains independent advice. Committee Court to and reports annually twice least meets at a year. once least at by the agreed is staff senior for policy The pay and subsequently Committee Remuneration the approval, Following Court. at approved staff senior all to issued are of the policy details a salary for application for including the process pay agreed the nationally uplift. to In addition of £0.1m a budget set the Committee award, 2018 for policy The pay awards. 2018 pay for exceptional for of awards included consideration and notified matters pay and gender performance based to apply of the opportunity staff senior all of Schools and Directorates Heads on the criteria. in remuneration review to asked also were All recommendations. make and to their areas considered are and recommendations applications a maximum of to approval for the Committee by the Remuneration budget. In addition, the £0.1m for the salaries and approve review Committee Team, of the Senior Management members new benchmark national consideration into taking UCEA the and also by provided information of in the application/CV demonstrated experience candidate. the successful Control and Internal Audit, Risk Management which has a predominantly The Audit Committee, with directly includes members membership, lay an by and is chaired experience, relevant times It meets five independent member of Court. and external internal with the University’s a year, meetings. all at in attendance auditors and reports oversees The Audit Committee of the of the effectiveness its view Court to the arrangements, risk management University’s the University by of which is overseen operation but with Risk being a regular Group Management agenda. on the Audit Committee item - 1,979 0.05% 0.00% £52,000 £114,976,000
Overall Page 109 of 323 Table 3: Total pay bill and facility time costs from from time costs bill and facility pay 3: Total Table 2018 March April 2017 to bill: pay Total time: of facility cost Total Percentage of pay bill spent of pay Percentage time: on facility union activities trade 4: Paid Table time: spent on paid facility Hours union activities: spent on paid trade Hours time paid facility of total Percentage on paid TU activities: spent hours Senior Officers officio ex who is a member of Court The Principal, decisions the implementing for has responsibility and consultation discussion initiating for of Court, and for development future on the University’s presented are proposals appropriate ensuring that body and as the Designated the governing to terms of the under the of the University Officer the University between Memorandum Financial ensuring for Council, Funding and the Scottish of the of the terms cognisance takes Court that its decision making. in all Memorandum Financial Court and of officer is the principal The Secretary within acts Court ensuring that for is responsible The procedures. proper and follows its powers Court to independent advice provides Secretary and collective about their individual members be discharged. should they how and responsibilities Going Concern to likely and the factors activities The University’s and performance development, its future affect Its cash Review. out in the Financial set are position in the detail set out in more and liquidity are flows Statements. the Financial to Notes the University that considers Court The University in operational continue to resources has adequate future. the foreseeable for existence Conclusion it has in place that view is of the Court Overall, and arrangements of governance set a robust responsibilities. fulfil its to procedures Mr Martin Gilbert Court of the University Senior Governor 2018 11 December Item 11.a Annual Report 2018.pdf - Page 42 of 102 32.0 29.9 0 representatives representatives 32 0 representatives 0 representatives
the general public and which are in the interests in the interests are public and which the general or of the or students, its staff of the University, be which should public, is a practice general encouraged. the Time Reporting for Union Facility Trade 2018 March period April 2017 to unions: the following recognises The University Unite (UCU), Unison, Union College and University and Prospect. right to a statutory have Union representatives for and union duties for trade time off reasonable rights allow Whilst these union activities. trade for trade of paid time off level a reasonable for paid time to extend union duties, this does not has a activities. The University union for trade off Agreement and Recognition Working Partnership of the framework out the formal which sets the arrangements and details approach partnership time time. Facility and facility consultation for of paid or unpaid time off from is the provision Trade undertake to role normal an employee’s Union as a Trade Union duties and activities representative. Union Act 2016 introduced Section 13 of the Trade on facility publish data to requirement a new including employers’ time in ‘public sector Time Publication Union (Facility HEIs. The Trade force into 2017 came Regulations Requirements) the requirements. on the 1st April 2017 and details and collate to have now employers Relevant on of data basis, a range publish, on an annual time within their of facility the amount and cost is to regulations of these The purpose organisation. public scrutiny for and allow transparency promote to required now are time. Employers of facility 2 in Schedule (outlined tables in four publish data below: detailed of the Regulations) and full-time union representatives 1: Trade Table equivalents union who were Number of employees during the period representatives union representatives: Trade representatives: union FTE trade of union representatives 2: Percentage Table time hours spent on facility working hours: 0% of working hours: 50% of working 1 to hours: of working 99% to 51 hours: 100% of working
STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL UoA
STATEMENT OF PRIMARY RESPONSIBILITIES OF THE COURT 43
Overall Page 110 of 323
Item 11.a Annual Report 2018.pdf - Page 43 of 102 STATEMENT Overall Page 111 of 323 To ensure that the University’s constitution, constitution, the University’s that ensure To and in the Acts, Ordinances as enacted 1858-1990 the University Affecting Resolutions and is followed legislation, and subsequent enable to is available advice appropriate that happen. this to in staff all authority for be the employing To the University. behaves the University that ensure To the for and with respect responsibly ethically, large. at society and for environment and business financial be the principal To that ensure to authority of the University, approve to kept, are books of account proper to statements, and financial budget the annual the funding requirements to adherence ensure Council, Funding by the Scottish specified the for responsibility overall have and to and and estate property assets, University’s their use. and monitoring the establishment ensure To and accountability, of control of systems controls and operational including financial as to so and management, and risk assessment and of the University the solvency maintain its assets. safeguard to in place are processes that ensure To the performance and evaluate monitor against of the University and effectiveness performance and key plans approved be benchmarked which should indicators, institutions, comparable other against possible. wherever
8. 9. and Effectiveness Accountability Controls, 10. 11. 12. 7. Item 11.a Annual Report 2018.pdf - Page 44 of 102 To approve the mission and strategic vision and strategic the mission approve To andincluding institutional of the University, and plans, and business academic longer-term ensure and to indicators, performance key of stakeholders, the interests meet they that and local alumni, including students, staff, and funding bodies. communities national of the and values name the good safeguard To University. as chief the Principal, to delegate To the academic, authority for executive, and human estate financial, corporate, and of the University, management resource such management and monitor establish to and under by functions be undertaken as shall the authority of the Principal. provision of educational the quality ensure To of decisions of the Senate the review through regulate to powers under its statutory made of and discipline the teaching and superintend research. promote and to the University authority and, as legal be the University’s To for in place are systems that ensure such, to obligations, legal meeting the University’s and contracts arising from including those in the made commitments legal other name. University’s legacy, any property, for as trustee act To bequest or gift in support ofendowment, which of the University, and welfare the work of of the University within the control is not Trust. Development Aberdeen Strategic Direction Direction Strategic 1. 2. Obligations Supervisory 3. 4. Responsibilities Corporate 5. 6. Court adopted a Statement of Primary Responsibilities which was which Responsibilities of Primary a Statement Court adopted are: responsibilities primary Court’s 2017/18. during in operation
STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL UoA STATEMENT OF CORPORATE GOVERNANCE AND INTERNAL CONTROL 45 Overall Page 112 of 323 ensure suitable accounting policies are policies are accounting suitable ensure and applied consistently; selected are that judgments and estimates make and prudent; reasonable standards accounting whether applicable state any material subject to been followed, have in the and explained disclosed departures and statements; financial ability University’s and parent the Group assess as disclosing, concern, as a going continue to concern; going to related matters applicable, and basis of accounting concern using the going the liquidate to either intend they unless cease or to University, or the parent Group but alternative no realistic or have operations, do so. to Funding the Scottish funds from that ensure for the purposes for only used are Council and in accordance been given have which they with the Memorandum with the Financial and any other Council Funding Scottish Council Funding which the Scottish conditions time prescribe; time to from may whatever funds, from any other that ensure the or the Group by administered source, been have specific purposes, for University in purposes those applied to properly and any legislation with relevant accordance them; to attached and conditions terms other and financial appropriate are there that ensure safeguard to in place controls management sources; other public funds and funds from and of the University the assets safeguard and prevent to steps reasonable take hence and fraud; detect effective efficient and the economical, secure and resources of the University’s management expenditure. give a true and fair view of the state of affairs of of affairs of the state view a true and fair give total the surplus or deficit, and of the University and cash and expenditure income comprehensive year. for that flows University and parent the Group When preparing to: required Court is statements, financial • • • • • as it control such internal for is responsible Court the preparation enable to is necessary determines material from free are that statements of financial or error. fraud whether due to misstatement, to: steps reasonable has taken Court • • • • • Item 11.a Annual Report 2018.pdf - Page 45 of 102 To ensure that arrangements are in place to place in are arrangements that ensure To the of management the proper promote staff of students, and security safety health, by the University. affected and others in leadership institutional provide To there ensure and to diversity and equality policies and procedures appropriate are and staff in which all support a culture to and the University across thrive students can and regulatory legislative which meet relevant requirements. with the in consultation provision, make To of students. welfare the general for Senate, for in place are procedures that ensure To of conflicts grievances, with internal dealing disclosure. and public interest interest and evaluate monitor to processes establish To of the and effectiveness the performance and its sub-committees and Court University in as is conducted business that ensure to with in accordance open a manner as possible, corporate in higher education best practice of public and with the principles governance on Standards the Committee up by drawn life in Public Life. the appointment of through ensure, To of skills and a balance persons, lay co-opted Court of the membership amongst experience meet its primary responsibilities. to as chief executive, appoint the Principal To for arrangements suitable put in place and to his/her performance. monitoring and to Court to appoint the Secretary To separation is an appropriate there that ensure between in the lines of accountability and managerial Court to responsibilities within the University. responsibilities 13. 14. 15. 16. 17. 18. of Senior Executives Monitoring 19. 20. matters financial Responsibility for accounting proper keeping for is responsible Court accuracy, with reasonable which disclose, records, at any of the University position the financial the financial that ensure it to time and enable with the in accordance prepared are statements of Recommended the 2015 Statement Statutes, and Further for Accounting (SORP): Practice accounting relevant and other Higher Education Reporting the Financial including FRS 102 standards, in the UK and Republic of applicable Standard and conditions within the terms In addition, Ireland. between agreed Memorandum of a Financial of and the Court Council Funding the Scottish its through Court, of Aberdeen, the University prepare to required is holder, office designated year which financial each for statements financial Overall Page 113 of 323 Item 11.a Annual Report 2018.pdf - Page 46 of 102 46 MEMBERSHIP OFMEMBERSHIP
MEMBERSHIP OF COURT AND KEY COMMITTEES UoA MEMBERSHIP OF COURT AND KEY COMMITTEES 47 Overall Page 114 of 323 Maggie Chapman Maggie Rector January 2015 Member since of the is co-convener Maggie and Chief Party Green Scottish - the Umbrella of SCOVI Executive Vision Impairment in Body for Edinburgh at She taught Scotland. eight and a for Napier University Edinburgh and is a former years half Councillor. up in Zimbabwe, Born and brought study to Scotland to she moved University. Edinburgh Zoology at a for worked She has previously charity and in women’s Scottish across management environmental Scotland. Item 11.a Annual Report 2018.pdf - Page 47 of 102 Martin Gilbert and Chancellor’s Senior Governor Assessor January 2017 Member since of Martin Gilbert is Chief Executive the Investments, Standard Aberdeen arm of Standard management asset Life Standard plc. Aberdeen Life global the leading plc, Aberdeen formed was company, investment between of the merger as a result PLC Management Asset Aberdeen in August plc Life and Standard Martin and co-chief by led 2017, have Both Skeoch. Keith executive £610 overseeing for responsibility management under billion of assets and administration. and Chief Martin is a co-founder Asset of Aberdeen Executive Martin was PLC. Management of the Prudential Chairman appointed Practitioner Authority’s Regulation 2013. He sits on in December Panel of the Institute of directors the board and is a Finance of International Advisory member of the International Authority of the Monetary Panel and the International of Singapore of British American Board Advisory Deputy Martin is also Business. Chairman of Sky PLC. the honorary awarded he was In 2009, the by of Laws of Doctor degree services for of Aberdeen University and entrepreneurship. business to PLC named Scotland In 2011, he was the Business at CEO of the Year Awards. PLC Scotland Insider/PwC of Martin is Adjunct Professor Business College Imperial at Finance born in Malaysia, School. Martin was and has an MA in Aberdeen educated and an LLB. in Accountancy Professor George Boyne Boyne George Professor officio) (ex Principal August 2018 Member since became Boyne George Professor of the and Vice-Chancellor Principal on 1 August of Aberdeen University 2018. has spent the Boyne Professor in career majority of his academic Vice-Chancellor, Pro was He Wales. of Arts, of the College Head and Sciences Humanities and Social Executive a member of University since University Cardiff at Board 2012. of Cardiff Dean previously He was School, and Business University’s on the expert is a world-leading public sector of performance has Boyne Professor organisations. of of the Academy been a Fellow 2010. since Sciences Social Overall Page 115 of 323 Item 11.a Annual Report 2018.pdf - Page 48 of 102 Lorna Jack Independent Member 2017 November Member since Society in joining the Law Since Lorna January 2009 as Chief Executive, in delivering team the staff has led That of modernisation. a program with a bolder, continues program strategy year ambitious five more drive is to role Lorna’s 2015-2020. for of this strategy the implementation in excellence legal lead which aims to enabling the Law and beyond Scotland professional be a world-class Society to accountant Lorna is a chartered body. of and a graduate profession, by University. Aberdeen and the Chair of Highlands Lorna is also on a temporary Airports Limited Islands and Treasurer basis and is a Trustee International of the McConnell Foundation. Colin Duncan Duncan Colin Independent Member 2012 May Member since Aberdeen from graduating After joined Marks & Colin in 1969, University in 30 years spending the next Spencer, becoming After management. senior with mentor business a high growth his own he ran Enterprise, Scottish As a former consultancy. business member of NHS non-executive and as a member of & Arran, Ayrshire Scotland for Commission the Accounts in experience considerable he gained remuneration, chairing governance, audit, HR, committees. and appeals Business Joining the University in Council of the General Committee from Convener elected was 2006, Colin with an Hons 2010 – 2014. He graduated the Studies from BSc in International Open University. James Hall Independent Member 2010 September Member since of than thirty years James has more management, in general experience and change business scale large and public in the private consulting a private He has chaired sectors. of the Chief Executive was company, and a Service Identity and Passport Board, member of the Home Office with Accenture, and spent thirty years running their UK including six years a member of James was business. and on Public Policy the Commission (1996-1997)British Business and was Affairs a member of the Economic of the CBI (1990-2002). Committee Professor Mirela Delibegovic Delibegovic Mirela Professor Assessor Senate 2016 October Member since Chair at a Personal holds Mirela the School of Medicine, Medical and Nutrition. She has been Sciences 2007, since a member of Senate of Biological the School representing and the School of Medicine, Sciences has focused Her research respectively. and of obesity and ageing, on the role and of diabetes on the development She sits on the disease. cardiovascular UK main funding panel and Diabetes She assessor. is the Carnegie Trust (Diabetes) the Director is currently and Cardiovascular of Aberdeen and the Systems Centre Diabetes the at co-lead Programme Physiology Sciences. of Medical Institute Jenny Fernandes Member Staff Non-Academic Elected 2017 September Member since of the University Jenny is an alumna as Head and has worked of Aberdeen for the past Office of its International at she worked that Prior to 14 years. and Queen of Glasgow the University She studied in University. Margaret as a and worked States the United 2006 and in Japan. Between teacher Chair and as Vice 2010 she acted Chair of the Scottish subsequently Group, International Universities and in 2018 joined the Executive of BUILA (British Universities Board Association). Liaison International Professor Nuala Booth Nuala Professor Independent Member 2014 October Member since member of staff is a former Nuala and Sciences of Life in the College a personal she held Medicine, where prior Thrombosis chair in Molecular in 2010. She made her retirement to research to contributions significant of 35 during her career and teaching She continues the University. at years on degradation in research her interest which is relevant clots, of blood She of thrombosis. the diseases to of the the work to contributes and the Society of Edinburgh Royal Society on Thrombosis International and Haemostasis.
MEMBERSHIP OF COURT AND KEY COMMITTEES UoA MEMBERSHIP OF COURT AND KEY COMMITTEES 49 Overall Page 116 of 323 Kathryn McPhail Kathryn Independent Member 2010 August Member since of McPhail is CEO Kathryn which convenes EnergyCC climate for industry networks Kathryn solutions. change roles executive in senior worked and Bank Group in the World FTSE and mining in oil & gas 100 on the She serves companies. Natural Group, Advisory Technical Institute, Governance Resources Sustainable Nations and the United Solutions Network. Development a member of the is also Kathryn of Directors Institute Singapore of University and the National Medicine International Singapore Council. Dr Martin Mills Member Staff Academic Elected 2017 September Member since in Martin is Senior Lecturer the University at Anthropology and the academic of Aberdeen, Court. Heto representative staff member of the an elected is also of fourteen Senate University the in both experience years’ and Science Schools of Social and Philosophy. History Divinity, on specialist active He is a research and political and Chinese Tibetan worked Martin has affairs. religious since University Aberdeen at at worked previously 2000, having St of Edinburgh, the Universities and Sussex. Andrews Item 11.a Annual Report 2018.pdf - Page 49 of 102 Anne Minto OBE Anne Minto Independent Member August 2015 Member since in a and has worked Anne is a lawyer in the roles senior number of global engineering, industries, oil and gas on the Centrica served and latterly as the Committee Executive plc Director Human Resources Group until 2011. 2002 from a non-executive She is currently and of Tate on the boards director Holdings and EXL plc Services Lyle on the she served Inc. Previously and Northumbrian plc of Shire boards is Chair of Anne plc. Group Water Board Operating the University’s of Aberdeen the University and also awarded She was Trust. Development the to services an OBE in 2000 for engineering industry. Iain Mackay Independent Member 2017 October Member since April 2019 Iain will be the Chief From SmithKline Glaxo for Officer Financial of 2018 Iain (GSK). At the end plc plc. HSBC Holdings from will retire Finance he has been the Group where which 2010, prior to since Director Officer as Chief Financial he served Holdings of HSBC North America Officer Inc. and Chief Financial plc. of HSBC Holdings (Asia-Pacific) of of the University An alumnus Studies and (MA in Business Aberdeen Chairman Iain is currently Accounting), of of the Audit and Risk committee and a Foundation the British Heart of of Trustees member of the Board Foundation. the British Heart Lyndsay Menzies Lyndsay Independent Member 2017 October Member since is CEO of Eight Million Stories, Lyndsay and digital winning content an award founding Prior to agency. marketing CEO of bigmouthmedia, 8MS she was be acquired with LBi to which merged in 2012. Credited Publicis Groupe by the at excellence with the operational an integral she was 13 years, for agency Winner part growth. of its phenomenal has Lyndsay awards, of numerous digital global of the largest some led such as IKEA, brands for campaigns and British Airways. Corporation Hilton David MacFarlane MacFarlane David Independent Member 2012 August Member since accountant chartered is a retired David in experience than 35 years’ with more and as a director management financial recently, Most sector. in the oil and gas of Dana director finance he was the takeover to Subsequent Petroleum. a career of Dana in 2010, he developed working director as a non-executive both of companies, with a portfolio and private. listed Overall Page 117 of 323 Item 11.a Annual Report 2018.pdf - Page 50 of 102 Dr Rachel Shanks Dr Rachel Assessor Senate 2017 October Member since in the School is a Senior Lecturer Rachel professional She researches of Education. and learning community learning, She law. and education development of the Open Learning is Co-Convenor Educational of the European network and is on the Board Association Research Research Educational of the Scottish of She is a Senior Fellow Association. and a Academy the Higher Education Community member of the Scottish Standards and Development Learning a varied had previously Rachel Council. education and in research career as a freelance including positions employment lecturer; law researcher; learning and as a lifelong rights adviser; organiser. Iain Percival Independent Member 2016 October Member since of the University from Iain graduated with a BSc (Hons) in Geology. Aberdeen Shell Petroleum Dutch He joined Royal for working and spent 34 years in 1973 in a number of positions the company as the ending his career the world, across During Engineer. Chief Petroleum global Heriot from graduated this time he also in with a Masters University - Watt Brunel University Engineering and from with a MBA. a in creating role a key Iain played programme ambassador campus and Shell, the University between petroleum a new and in establishing degree. engineering undergraduate named an honorary In 2012 he was in the Schools of Geoscience professor and Engineering. Professor Joachim Schaper Joachim Professor Assessor Senate 2017 October Member since Philosophy studied Theology, Joachim the University at and Assyriology the and Theology at of Tübingen He was of Cambridge. University College, Clare at Fellow a Research and taught of Cambridge University Testament in Old as a Privatdozent from of Tübingen the University at 2005. In 2005 he joined1999 to in Old as a Reader the University a to appointed was Testament, Chair in 2006, and translated Personal and Semitic the Chair of Hebrew to in 2012. Languages Dr Nir Oren Assessor Senate 2015 January Member since in the School of Nir is a Reader Sciences. and Computing Natural of lies in the area His research onfocuses and Intelligence, Artificial decision supporting automating and His environments. making in complex domains has been applied to work food as transportation, as varied response. and emergency packaging, 150 peer- Nir has published over in the area. papers research reviewed Brian Paterson Brian Member Union Nominated Trade Staff) (Non-Academic August 2011 Member since has been a member of theBrian in the Department staff technical performing 1992 of Chemistry since support duties, and research teaching a secondment as completing as well a for Improvement with Business has also Brian years. period of three union representative been a trade as a served 1999 and previously since the University to Trustee nominated and Life Superannuation of Aberdeen Scheme (UASLAS). Assurance Lawson Ogubie Lawson 2018/2019 Student President 2017 July Member since student the whole represents Lawson and Chair body as Student President He sits Board. of the AUSA Trustee Committee, on the AUSA Executive as a number as well Student Council committees, appointed of University and Senate, including Court of students to the views representing the University. of University graduate is a law Lawson his He obtained of Benin, Nigeria. in 2013. Thereafter LLB (Hons) Degree Law the Nigerian he attended as a Legal he qualified School where the as his election Before Practitioner. a pursuing he was Student President, Law and Environmental LLM in Energy of Aberdeen. the University at
MEMBERSHIP OF COURT AND KEY COMMITTEES UoA MEMBERSHIP OF COURT AND KEY COMMITTEES 51 Overall Page 118 of 323 Donna Connelly Member Student AUSA Nominated June 2018 Member since Science Donna is a Computing the University, from graduate Banff studied at previously having and Aberdeen and Buchan College the Donna is currently College. for Aberdeen Officer Education Association Students’ University in the role. year (AUSA), her second Item 11.a Annual Report 2018.pdf - Page 51 of 102 David Steyn Steyn David Independent Member August 2011 Member since Partners Cervino is a partner at David of Good and a director Limited His involvement Limited. Growth when he started with the University of the University joined the board USA Development of Aberdeen with York in New whilst based Trust he was where AllianceBernstein, David is a Officer. Chief Operating Portrait of the National patron life Gallery. Jenny Shirreffs MBE Jenny Shirreffs Independent Member 2012 October Member since and volunteer Jenny is a prominent in sector the charitable to contributor to service voluntary Jenny’s Aberdeen. with recognised was the community of She is a Burgess the MBE in 2009. a Commander the City of Aberdeen, of St John, a Deputy of the Order of the City of Aberdeen, Lieutenant Club of the Rotary President and Past a Founder St Machar, of Aberdeen Arts, Performing of Aberdeen Director in many other as being involved as well organisations. arts and charitable Dr David Watts Watts Dr David Member Union Nominated Trade Staff) (Academic August 2017 Member since in 2007 joined the University David in the Rowett based and is currently research He is conducting Institute. and among food networking into: consumption food drink enterprises; and insecurity; food practices; Officer He is Pensions cooperation. the for Treasurer and Honorary of the University branch Aberdeen Union and has recently and College the Senatus to been elected worked previously David Academicus. and of Bristol the Universities at Rural Scotland’s and at Coventry, College. ± Overall Page 119 of 323 As alternate to Dr Mills Professor P Hannaford (from 15.06.18) (from P Hannaford Professor C Inglis Mrs 25.08.17) J Kilburn (to Professor 31.12.17) (to Mr D MacFarlane 29.01.18) Ms L Menzies (from Mr L Ogubie 29.01.18)º (from Mr B Paterson 29.01.18) Dr R Shanks (from 29.01.18) (from Dr D Watts MEMBERSHIP: COMMITTEE REMUNERATION (Convener) Mr D Steyn Mr C Duncan Mr M Gilbert K McPhail Mrs Mr L Ogubie 29.01.18) (from Mr B Paterson 29.01.18) (from Mr I Percival 29.01.18) Dr R Shanks (from COMMITTEE NOMINATIONS GOVERNANCE MEMBERSHIP: (Convener) Mr J Hall 01.08.18) (from G Boyne Professor 31.07.18) (to Sir I Diamond Professor 29.01.18) (from J Fernandes Mrs º As alternate to Dr Watts * As alternate to the Principal when not available ± Mr M Gilbert 15.06.18) to 01.09.17 (from M Greaves* Professor 15.06.18) (from P Hannaford* Professor 29.01.18) (from Ms L Jack 29.01.18) (from Mr I Mackay only) of 11.09.17 meeting (for K McPhail Mrs 29.01.18) Dr M Mills (from Mr L Ogubie 08.11.17) J Schaper (from Professor J Shirreffs Mrs MEMBERSHIP: AUDIT COMMITTEE 31.10.17) to (Convener Mr K Murray 01.11.17) from (Convener Mr D MacFarlane Ms L Macfarlan M McNeill Mrs 31.10.17) (to Mr A McNiven Mr P Milne to Member Staff (Co-opted Sir L Ritchie Professor 30.09.17) Item 11.a Annual Report 2018.pdf - Page 52 of 102 UNIVERSITY COURT MEMBERSHIP: COURT UNIVERSITY Rector 01.04.18) and from 31.12.17 Ms M Chapman (to Principal 31.07.18) (to Sir I Diamond Professor 01.08.18) (from G Boyne Professor & Senior Governor Assessor Chancellor’s Mr M Gilbert Senatus Assessors: 1.10.17) (from M Delibegovic Professor 1.10.17) (from Dr N Oren 1.10.2017) J Schaper (from Professor 1.10.2017) Dr R Shanks (from Member Staff Academic Elected 15.09.17) Dr M Mills (from Member Staff Non-Academic Elected 15.09.17) (from J Fernandes Mrs Nominee Union Trade Academic 01.08.17) (from Dr D Watts Union Nominee Trade Non-Academic 01.08.17) (from Mr B Paterson Association Students’ President, Mr L Ogubie Nominee Association Students’ Second 15.05.18) Ms K A Smith (to 27.06.18) (from Connelly D Mrs Independent Members N Booth Professor Mr C Duncan Mr J Hall 01.11.17) (from Ms L Jack Mr D MacFarlane 04.10.17) (from Mr I Mackay K McPhail Mrs 04.10.17) Ms L Menzies (from Ms A Minto 31.10.17) (to Mr K Murray Mr I Percival J Shirreffs Mrs Mr D Steyn MEMBERSHIP: BOARD OPERATING and Chair from Co-Chair (Interim Ms A Minto 27.06.18) 26.06.18) to Co-Chair (Interim Mr J Hall N Booth Professor 01.08.18) (from G Boyne Professor 17.10.17) (from M Delibegovic Professor 31.07.18) (to Sir I Diamond Professor 15.06.18) to 01.09.17 (from M Greaves Professor
MEMBERSHIP OF COURT AND KEY COMMITTEES UoA MEMBERSHIP OF COURT AND KEY COMMITTEES 53 Overall Page 120 of 323 Item 11.a Annual Report 2018.pdf - Page 53 of 102 Overall Page 121 of 323 and 1 of 1 1 of 1 1 of 2 1 of 2 2 of 3 3 of 5 3 of 5 5 of 5 5 of 5 4 of 5 2 of 4 (5year) in Committee Governance Governance Nominations Item 11.a Annual Report 2018.pdf - Page 54 of 102 1 of 2 1 of 2 1 of 2 1 of 2 1 of 2 2 of 2 2 of 2 2 of 2 2 of 2 (2 in year) Committee Remuneration 3 of 3 3 of 3 7 of 7 7 of 7 5 of 7 2 of 2 7 of 7 2 of 4 6 of 7 4 of 4 Board (7 in year) Operating Operating 1 of 1 1 of 1 1 of 1 Audit 5 of 5 5 of 5 4 of 5 4 of 5 (5year) in Committee 1 of 1 0 of 1 3 of 5 3 of 5 5 of 5 3 of 5 5 of 5 5 of 5 5 of 5 5 of 5 5 of 5 5 of 5 5 of 5 5 of 5 5 of 5 5 of 5 5 of 5 5 of 5 4 of 5 4 of 5 4 of 5 4 of 5 4 of 5 4 of 5 4 of 4 4 of 4 4 of 4 Court (5year) in University Member Ms L Macfarlan M McNeill Mrs Mr A McNiven Mr P Milne Ritchie Sir Lewis Professor Mr D Steyn Ms L Menzies A Minto Mrs Mr K Murray Mr I Percival J Shirreffs Mrs Ms K McPhail Mr I Mackay Ms L Jack Mr D MacFarlane Mr C Duncan Mr J Hall Ms K A Smith D Connelly Mrs N Booth Professor Mr L Ogubie Dr D Watts Mr B Paterson Mrs J Fernandes Mrs Dr M Mills Professor M Delibegovic Professor Dr N Oren Dr R Shanks Professor J Schaper Professor Mr Martin Gilbert Ms M Chapman Ian Diamond Sir Professor ATTENDANCE OF COURT AND AUDIT COMMITTEE MEMBERS AT UNIVERSITY COURT UNIVERSITY COURT AT MEMBERS AND AUDIT COMMITTEE OF COURT ATTENDANCE 2018 JULY 31 FOR THE YEAR MEETINGS AND COMMITTEE TO
MEMBERSHIP OF COURT AND KEY COMMITTEES UoA MEMBERSHIP OF COURT AND KEY COMMITTEES 55 Overall Page 122 of 323 Item 11.a Annual Report 2018.pdf - Page 55 of 102 Risk Processes Management Overall Page 123 of 323 Risk Item 11.a Annual Report 2018.pdf - Page 56 of 102 Structures Management Risk Aberdeen Management at RISK
RISK MANAGEMENT UoA RISK MANAGEMENT 57 Overall Page 124 of 323 Risk Management Structures Risk Management Risk Register, Strategic has a The University of strategic underpin areas designed to of linked delivery facilitate and to importance, on the based level, institutional at objectives (2015-20). The risks are Plan Strategic University’s accountability with overarching centrally, managed The risk Court. the University to assigned and down cascades also process management Schools, Professional to the institution, across it is a where projects, capital and to Services Project as part of the University’s used tool key Methodology. Management Risks Strategic is comprised Register Risk Strategic The University’s of strategic identified as areas risk areas, of 10 key the institution and its ability to to importance ambitions. Each strategic its high-level achieve themes strategic one of three to one is linked Strategic the basis of the institutional which form and Teaching Research, People, 2015-2020: Plan risk & Learning.the 10 key of A short description with a summary of the management along areas, in the one, is given each for in place arrangements overleaf: table Item 11.a Annual Report 2018.pdf - Page 57 of 102 Why Risk Management? aims and objectives, strategic its key In pursuing and research, in education excellence achieve to activities undertake will inevitably the University in which of risk. The way which incur a level an effective through managed, risks are these our function, to is fundamental risk management will both risk management Effective success. and realised, risks are that the likelihood reduce are. they that in the event their impact Aberdeen at Risk Management of the University risk at of The management as part of the institution’s is undertaken Aberdeen which is based Framework Risk Management in risk standards recognised on internationally best practice. accepted and widely management is part of the Framework The Risk Management structure governance corporate wider institutional risk management and includes an institutional on risk appetite, statement a University policy, which process risk management and a detailed risk identification, methods for prescribes for and arrangements and control, monitoring assurance. RISK
Appetite and Risk Strategic Risks Overall Page 125 of 323 Item 11.a Annual Report 2018.pdf - Page 58 of 102 RISK MANAGEMENT Risks linked to E&D fall under the remit of the Senior Vice- under the remit E&D fall to Risks linked units within the dedicated via managed and are Principal, Human which includes of People, Directorate University’s functions. Student Support Student Experience and Resources, Financial control is exercised via the University Court, informed by by informed Court, the University via is exercised control Financial and Audit Committee. Group Management Board, its Operating within the wider strategic component a key is also Planning Financial function. planning The University engages regularly and constructively with the and constructively regularly engages The University the and UK. engages It also Scotland Universities via sector and and UK Governments, Scottish Council, Funding Scottish abreast kept is it to ensure the Home Office bodies like affiliated and regulation in policy, changes to and responds understands of, legislation. The health and safety of staff and students is at the forefront of forefront at the and students is of staff and safety The health business- simple from undertakes, the University initiative every It is an abroad. major activities to day, each activities as-usual theme. wider People within the University’s component inherent The quality of the University’s physical and digital environments environments and digital physical of the University’s The quality Management Programme its Capital via managed is proactively report which both Committee, Strategy and its Digital Committee Capital has a 10-Year The University Board. Operating via Court to and and digital, estate which spans both Programme Investment funding streams. dedicated via maintenance term long manages The University is working to develop a new institutional recruitment recruitment institutional a new develop to is working The University and recruitment on international focus with a particular strategy, and support work explore to It continues partnerships. international and research on market Schools, based by informed markets, in new recruitment increased on both focuses Growth returns. previous an ongoing by supported campuses and overseas the Aberdeen to programmes. online PGT of new development Academic recruitment strategies aim to support research excellence excellence support research aim to strategies recruitment Academic risks and the associated performance Research eg in REF 2021. and in turn, via Research, for the Vice-Principal via managed are has institutional This committee Committee. Policy the Research oversight and providing strategy, shaping research for responsibility preparations. REF2021 for The University promotes itself as an attractive destination for for destination as an attractive itself promotes The University processes It has excellent home and internationally. at both scholars, programmes development career strong induction and offers for professional and staff academic including all areas, across staff for services. An excellent student experience is fundamental to institutional to is fundamental student experience An excellent Student Experience a dedicated by and is overseen success, in Investment Education. for the Vice-Principal by led Committee, is an ongoing and digital, physical both infrastructure, student-facing of students through retention to enhance efforts as are priority, the University. across support structures comprehensive The University seeks to grow student numbers through diverse diverse through student numbers grow to seeks The University on student recruitment of Brexit impact The potential activities. been have strategies and mitigating closely is being monitored learning online distance of new The development put in place. with along apace continues markets global for programmes colleges. from and articulation widening access for strategies RISK DESCRIPTION RISK DESCRIPTION Equality and diversity is fundamental is fundamental and diversity Equality people. to approach the University’s to significant carry Activities in this area to key benefits and are reputational ensuring compliance. Failure to achieve targets linked to to linked targets achieve to Failure sustainability will impair the financial in its ability strategic meet its University areas. all across objectives Compliance with different legislative and and legislative with different Compliance bodies underpins a number regulatory including financial areas, business of core sustainability, infrastructure sustainability, research internationalisation, student recruitment. and performance Failure to foster a culture which places which places a culture foster to Failure of our the core at and safety health and will undermine the staff activities have and may student experience, impacts. reputational adverse The quality of the physical estate and estate physical of the The quality the to is key IT infrastructure the linked and staff to and image, brand University’s of the quality and to student recruitment, offering. experience and student our staff This risk spans international market market This risk spans international student recruitment, position, collaborations research partnerships, achieve to Failure and TNE projects. will areas these across objectives on financial impact potentially ability sustainability and the University’s term. long compete to Poor performance in areas like research research like in areas performance Poor and the Research generation income will have (REF2021) Framework Excellence impact, reputational and financial adverse and student staff both affect and may and retention. recruitment The ability to attract and retain excellent excellent and retain attract The ability to high achieving to is imperative staff like areas key across performance quality and the learning, and teaching research, student experience. Failure to deliver a high quality student a high quality deliver to Failure the University’s will affect experience successfully and its ability to reputation students. and retain attract Failure to attract and retain students and retain attract to Failure all across targets growth and achieve and financial a significant have may areas impact. reputational STRATEGIC RISK STRATEGIC AREA Equality andEquality Diversity Financial Sustainability Governance and Governance Risks Business Core Health and Safety Health Infrastructure Infrastructure Sustainability Internationalisation Research Research and Performance Impact Staff RecruitmentStaff and Retention Student Experience Student Recruitment STRATEGIC STRATEGIC THEME People; Research; T&L; People; Research; T&L; People; Research; T&L; People; People; Research; T&L; People; Research; T&L; Research; People; Research; T&L People; T&L T&L
RISKS LINKED TO THE THEMES UoA RISK MANAGEMENT 59 HIGH Overall Page 126 of 323 OPEN MODERATE Based on these appetite ratings, the University the University ratings, appetite on these Based poses that any activity avoid to seek will generally financial to: organisational threat a significant and wellbeing safety sustainability; the health, allto meet and students; or its ability of its staff required requirements, and legislative regulatory the University the SFC. However, bodies like by of higher levels accepting open to will be more areas opportunities under key are there risk where student example: for importance, of strategic and the wider performance research recruitment, of these account Taking student experience. the collective, across ratings risk appetite varying for defines its appetite therefore the University open, while to as moderate terms risk in general to according will change appetite that accepting context. Risk Appetite risk accepting for appetite The University’s under on the risk area depending will change involved. and the specific objectives consideration applied to are ratings appetite risk Consequently varying the University’s reflect to risk area each as below. contexts, different risk across to attitude Item 11.a Annual Report 2018.pdf - Page 59 of 102 AVERSE AVOID Risk Appetite Matrix Risk Appetite These risks are not exhaustive; the University the University exhaustive; not are risks These major risks arising from of account takes also which transcend sector the across developments at the current In particular, risk areas. different the to inherent time, this includes threats the from emerge to likely are which University as a with the EU changing relationship UK’s security cyber risks to of Brexit, consequence the funding environment, to relating and threats affect adversely to the potential which have The performance. and research education both opportunities where embrace will also University to outweigh considered benefits are the strategic different pursuing in risks; the example, relative for (TNE) initiatives. overseas STRATEGIC RISK AREA STRATEGIC Equality and Diversity Equality Sustainability Financial Business and Core Governance and Safety Health Sustainability Infrastructure Internationalisation and Impact Performance Research and Retention Recruitment Staff Student Experience Student Recruitment Overall Page 127 of 323 Item 11.a Annual Report 2018.pdf - Page 60 of 102 Year ended 31 July 2018 ended Year FINANCIAL
FINANCIAL REVIEW UoA FINANCIAL REVIEW 61 25% 25% Overall Page 128 of 323 34% 15% 2015 2016 2017 2018 Underlying Surplus/Deficit Underlying 26% Tuition fees - £55.8m (2017: £53.2m) - £55.8m (2017: fees Tuition £74.3m) (2017: - £74.8m grants council Funding £61.0m) (2017: - £56.1m & contracts grants Research £34.0m) (2017: - £32.8m Other income 1 0 (1) £2 (3) (2) (4) £m Income for the year has decreased by £3.0m to £3.0m to by has decreased the year for Income £219.5m. £55.8m with 5.0% to by increased have fees Tuition £19.3m, to £2.1m by increasing & EU fees Scottish decreased Rest of UK fees 2016/17. from or 12.1% by increased and Non-EU fees £9.0m £0.3m to by 2018. 31 July to in the year £25.9m to £1.2m or 4.9% Our underlying deficit is representative of the representative deficit is Our underlying increased with face, currently we that challenges such as pension costs and additional competition our manage must actively We contributions. remain in a sustainable we that to ensure finances minimum to as a committed, are We position. underlying break-even an operating to returning This will end 2019/20. year financial by position to meet sufficient are reserves cash that ensure whilst programme, investment the University’s activities. for operating sufficient funds maintaining Income 2017/18 Income £219.5m Item 11.a Annual Report 2018.pdf - Page 61 of 102 - 1,413 2017 (593) (517) 2017 (1,174) £000 (249) 2,687 2,500 £000 18,422 (6,788) (1,955) 10,868 (6,788) 222,462 229,250 - - 847 509 1,130 2018 2,166 £000 (1,052) (7,478) 2018 3,953 £000 9,730 (3,878) 13,255 219,471 (7,478) 226,949 Underlying (deficit) Underlying Pension provision movements (Note 21a) (Note movements provision Pension Changes in tuition fee assumptions in tuition fee Changes Impairments Research and development and development Research credit expenditure Provisions for onerous contracts and contracts onerous for Provisions costs pre-establishment Taxation Actuarial gain in respect of pension in respect gain Actuarial schemes the year for income Comprehensive Other gains/(losses) (Deficit) before other gains and other (Deficit) before losses Expenditure Income Voluntary severance and early and early severance Voluntary schemes retirement (Deficit) before other gains and losses gains and other (Deficit) before The Group’s reported results for the year are: the year for results reported The Group’s Scope of the Financial Statements of the Financial Scope been have which Statements, The Financial on a prepared been have the Court, by approved the consolidated basis and represent consolidated the and its subsidiary, of the University results The statements Ltd. Institute Research Rowett (FRS) Reporting Standard with Financial comply (SORP) Practice of Account and the Statement 102 2015. and Higher Education Further for Accounting Performance Financial Our financial management emphasis is on the management Our financial non-controllable exclude that results underlying such as items significant individually and other and of investments of the value the movement for the deficit pension deficits. The underlying with £2.0m compared 2018 is £3.9m 31 July to year as follows: the prior year for finance costs finance Depreciation & Depreciation Overall Page 129 of 323 Operating costs Operating 2015 2016 2017 2018 Staff costs Staff Expenditure Trends Expenditure 0 40 80 £m 120 160 Other Gains and Losses sold was our Bucksburn site at Surplus land our non- in a £3.0m surplus. In addition resulting by appreciated portfolios investment current the continued due to mainly during the year, £2.4m and of our endowment performance strong of the (£2.5m) whilst the value pension portfolios slightly. fell in our spin-out companies holdings housing in the Aberdeen downturn The continued (2017: in a further £0.9m has resulted market of our investment in the value £3.5m) reduction properties. Schemes Gain in Respect of Pension Actuarial the to is attributed The majority of the £13.3m gain and Life Superannuation of Aberdeen University of £11.5m Scheme with an improvement Assurance the Strathclyde for and a £1.8m improvement Fund. Pension Total expenditure decreased by £2.4m or 1.0% to or £2.4m by decreased expenditure Total £226.9m. by £1.5m increased of £136.0m have costs Staff award, pay a 1.7% against When considered (1.1%). scales within our salary movements incremental contributions in employer increase and a 6.7% through mid-way scheme pension our local to control tight reflect to this continues the year, excluding costs, Staff expenditure. on staffing 60% of represent now movements pension liability by fell Other expenditure 59%). (2017: expenditure £68.6m, partially to the year £3.6m or 5.0% during party student third for the £2.5mdue to provision in the prior charged provision accommodation the for of £0.7m include a provision Costs year. in costs of pre-establishment repayment potential in respect £0.4m campus, of an overseas respect contracts party student accommodation of third our to in relation and £2.2m of impairments mainly of Residence. Halls and Johnston Crombie Item 11.a Annual Report 2018.pdf - Page 62 of 102 Other income 60% grants & grants Research Research contracts 10% Funding Funding council grants council 2015 2016 2017 2018 30% Tuition fees Tuition Staff costs - £136.0m (2017: £134.5m) - £136.0m (2017: costs Staff £72.2m) - £68.6m (2017: costs Operating £22.6m) - £22.3mcosts (2017: & finance Depreciation Income Trends Income 0 20 40 60 80 £m Funding Body grants have increased by £0.5m to £0.5m to by increased have Body grants Funding of teaching in funding for an increase with £74.8m, of 2.4% funding in research (£0.6m) and a fall 1.3% have funding streams (£0.5m). Other strategic from the release and (4.2%) £0.1m by increased £0.3m by improved has grants capital deferred (10.2%). of £56.1m income and contracts grants Research in the £61.0m (8.0%) from £4.9m by decreased attributable is mainly The decrease year. previous a £1.5m income, Council Research in a £1.5m fall to income grant research in UK government reduction and Development of the Research and the removal which amounted recovery, tax Credit Expenditure in the prior year. £1.4m to £32.8m. to £1.1m by has reduced Other income by has reduced income Student residences increased due to in voids with an increase £2.4m market. within the Aberdeen competition £0.3m as by has increased income Investment improved and balances of higher cash a result returns. portfolio endowment Expenditure 2017/18 Expenditure £226.9m
FINANCIAL REVIEW UoA FINANCIAL REVIEW 63 Overall Page 130 of 323 In order to fund new capital projects the projects capital fund new to In order of way funds by raising is considering University has been work bond. Initial placement a private of such a bond with on the feasibility undertaken and to proceed to whether decision as the final be confirmed to the quantum of any borrowing of of the review with the outcome in conjunction projects. infrastructure future finance into has entered the University In addition repayable with £2.1m of residence, halls for leases 2018 and a further in October of a lease on expiry expiring an agreement for of £26.2m commitment in 2037. of Creditors Payment payment for policy has no single The University arrangements abide by to but agrees of creditors was No interest with is suppliers. negotiated of Payments under the Late paid in the year Act. Debts (Interest) Commercial 2018 31 July Sheet as at Balance Assets Non-Current to £9.4m by reduced have assets Non-current in With the University during the year. £605.1m of capital round next the for phase a planning been of £10.2m have additions investment, of £18.6m and the charges by depreciation offset of properties of investment in value reduction increased have investments Non-current £0.9m. market strong the continued due to £2.7m by performance. Liabilities Net Current net current had 2018, the Group 31 July As at on of £1.1m of £12.3m,liabilities an improvement intensive As with many research the prior year. of grants research for income prepaid institutes, the to £18.0m) is a main contributor £18.5m (2017: creditors In addition position. liabilities net current grants include capital one year due within falling in respect and an accrual of £3.7m be released to a of £4.8m. Additionally, leave annual of untaken in of land of the sale in respect of £3.1m debtor of the (£2.1m) repayment 2018 and the final July 2018 are in October expired that lease finance liabilities. included within net current Item 11.a Annual Report 2018.pdf - Page 63 of 102 £m (25) (20) (15) (10) (5) 0 2018 Net current liabilities Net current 2017 Net current liabilities Net current 2016 Cash 2015 Cash & Liquidity 5 5 0 15 10 3 25 30 20 £m Cash Operating activities generated a cash inflow of inflow a cash generated activities Operating of capital account taking After £16.1m). (2017: £17.3m and borrowing income investment expenditure, was £4.3m, inflow cash group the overall costs, to 31 year for the a £5.8m inflow with compared comfortably of £4.3m inflow The net cash 2017. July bank to interest flow our net cash exceeds covenant. Projects Capital our for phase in the planning in currently are We capital and as a result programme capital next concentrated was during the year investment is Work estate. of our existing on the upgrade and a number of new for on plans progressing whether to The decision as to facilities. updated of and their order projects with these progress Court once priority will better understood be The University objectives. our strategic agrees our enhance fund to capital has a recurrent also £3.5m in this and invested technology information during the year. area Management Treasury Borrowing facility £40.0m loan an agreed have currently We drawn which has been fully Bank plc, with Barclays our capital fund to and has been used down a over has been utilised The facility investment. in April down draw period of time with the initial in utilised of £10.4m instalment and the final 2007 payments due in four are April 2015. Repayments and 2036 2031 2026, 2021, of £10.0m, in September respectively. Cash Flow Overall Page 131 of 323 Creditors: Amounts Falling Due After More Than More After Due Falling Amounts Creditors: One Year £4.3m to by reduced have creditors Long term of comprise The creditors £160.3m the year. during obligations lease and finance (£40.0m) borrowing income as £95.2m of deferred (£25.0m) as well government from grants of capital in respect organisations. Schemes and Pension Provisions £12.4m by decreased have provisions Pension cover The provisions during the year. £41.7m to of the contractual value fair the discounted the for £27.5m) (2017: of £27.5m contributions and Scheme (USS), Superannuation Universities of the respect in £22.7m) a further £10.8m (2017: Life and Superannuation of Aberdeen University Scheme (UASLAS). The Strathclyde Assurance surplus a small to returned (SPF) has Fund Pension the in been recognised but this has not of £0.7m, (2017: sheet. A further £3.4m balance University’s the payment against has been provided £3.9m) a number of former pensions to of enhanced employees Northern College and UASLAS undertook the USS Both schemes The UASLAS during the year. valuations triennial resulted that a deficit of £9.0m reported scheme 17.5% from increasing contributions in employer during held was member consultation A 24.2%. to will the scheme the summer of 2018 and as a result pension benefits on a defined offer to continue Employer rate. accrual lower benefit basis with a to the Scheme will will reduce to contributions 1 January 2019. from 18.3% in which the scheme is a multi-employer The USS The 2017 employer. is a participating University has been undertaken of USS valuation actuarial and the total completed been formally but has not to is estimated pension liability multi-employer hasTrustee USS The £7.5bn. to significantly increase the maintain to in order that concluded therefore combined the of benefits level current Scheme’s needs rate contribution and employee employer (JEP) a Joint Expert Panel In parallel, increase. to and the valuation assess to has been established 2018. in September its report this panel delivered lower a significantly suggests findings The JEP’s Trustee to the lead which may deficit position benefits and/or to changes alternative proposing levels. contribution Item 11.a Annual Report 2018.pdf - Page 64 of 102
FINANCIAL REVIEW UoA FINANCIAL REVIEW 65 Overall Page 132 of 323 The actuarial valuation and notification of revised revised of notification and valuation The actuarial finalisedto be expected contributions is deficit the 2019 and 31 July ending year in the financial be to is expected as required, provision, revised for that statements financial in the recognised year. Outlook HE intuitions as with many other Aberdeen, and an uncertain a challenging face to continues we With this in mind, environment. financial generation, on income focus to will continue efficiencies and achieving productivity increasing We sustainability. financial term long ensure to of initiatives, portfolio an exciting developed have and online our overseas to including enhancement in support of our strategic tuition programmes, which include plans has approved Court goals. as a strategic as well targets ambitious income academic in fifty new invest fund to investment appointments, which will support academic the next over growth and revenue performance fund will investment The strategic years. three deliver to support the potential to be used Excellence in the Research performance enhanced and income in research and increases Framework income. net tuition fee new into enter us to will allow changes These Returning streams. income and diversify markets by position operating a break-even least, at to, us and allow generation cash will improve 2019/20 our future. towards invest to Item 11.a Annual Report 2018.pdf - Page 65 of 102 An indicative 1% increase to the employer the employer to 1% increase An indicative in results in an increase rate recovery deficit million. of £13.1 the provision deficit, has on the £7.5bn based Trustee, USS rate in the recovery an increase indicated of value in a provision which results of 3.9% of £45.8m on the current an increase £73.3m, provision. • • In the judgment of the University, as the 2017 USS of the University, In the judgment it therefore completed formally is not valuation continue to 2018 31 July at appropriate remains using obligation the past deficit for account to contribution recovery deficit of 2.1% the existing the 31 risk that is a significant there However, rate. will not as calculated provision 2018 year-end July outcome the final following this position reflect significant a very by potentially of negotiations, regards as agreed is what amount depending upon The duration. contributions and their deficit future in this clarity greater have to expects University year. financial during the next respect outlines analysis sensitivity indicative The following 2018 31 July on the University’s impact the potential of £27.5m: liability provision To meet this deficit and the ongoing cost ofcost meet this deficit and the ongoing To employer’s the University forward, pensions going in the A 1% increase rise. to is likely contribution £800,000 circa will cost contribution employer’s to the cost the deficit, on the £7.5bn and based be an additional would increase of a 3.9% University with the current million per annum compared £5.1 2018. 31 July to in the year of £15.1m cost total Overall Page 133 of 323
have been prepared in accordance with the with accordance in been prepared have (Scotland) Investment Trustee Charities and of the Charities 14 Act regulation 2005 and 2006 (as Regulations (Scotland) Accounts amended). based solely on that work, we have identified have we work, on that solely based in the other misstatements material or information; in the given in our opinion, the information in any material Report is inconsistent Strategic statements. with the financial respect • • • Basis for opinion Basis for under section as auditor been appointed have We Investment of the Charities and Trustee 44 (1)(c) in you to Act 2005 and report (Scotland) under made with the regulations accordance Act.that with audit in accordance our conducted We (UK) (“ISAs on Auditing Standards International are Our responsibilities law. (UK)”) and applicable our ethical fulfilled have We below. described independent of the are and under, responsibilities requirements with, UK ethical in accordance group that believe We Standard. Ethical including the FRC is a sufficient obtained have we the audit evidence our opinion. basis for and appropriate Going concern have if we you to report to required are We concern going of the the use that concluded is an or there is inappropriate basis of accounting cast may that uncertainty material undisclosed for a basis of that the use over doubt significant the date months from twelve least period of at We have statements. of the financial of approval respects. in these report to nothing Other information of the University for Court The University information, the other for is responsible Aberdeen in the information of the all which comprises statements ReportAnnual than the financial other and our audit opinion. Our opinion on the financial information the other cover does not statements an audit express do not we and, accordingly, any below, stated as explicitly except opinion or, thereon. conclusion of assurance form information the other read is to Our responsibility on our based whether, consider and, in doing so, work, the information audit statements financial with or inconsistent misstated is materially therein audit knowledge. or our statements the financial if: you to report to required are We We have nothing to report in these respects. respects. in these report to nothing have We Item 11.a Annual Report 2018.pdf - Page 66 of 102
give a true and fair view of the state of the of the state view a true and fair give at 31 July as affairs and the University’s Group’s and the University’s 2018 and of the Group’s and and losses gains and expenditure, income cash and of the Group’s in reserves changes then ended; year for the flows in accordance prepared been properly have including standards, with UK accounting Reporting Standard The Financial FRS 102 in the UK and Republic of applicable of and with the 2015 Statement Ireland, for – Accounting Practice Recommended and and Higher Education; Further • • Report of the auditor on the financial on the financial Report of the auditor statements Opinion of statements the financial audited have We University”) (“the of Aberdeen the University comprise 2018 which ended 31 July the year for of Statements and University the Consolidated the and Expenditure, Income Comprehensive of Change Statements and University Consolidated and University the Consolidated in Reserves, Cash Flow Sheets, the Consolidated Balance including the notes, and the related Statement policies. accounting statements: In our opinion the financial
Aberdeen the University of the University to the Court ofto the auditor’s reportauditor’s Independent
INDEPENDENT AUDITOR’S REPORT UoA INDEPENDENT AUDITOR’S REPORT 67 Overall Page 134 of 323 funds from whatever source administered administered source whatever funds from specific for the University or the Group by applied to been properly have purposes in managed and, if relevant, purposes those and any legislation with relevant accordance them; to attached and conditions terms other Funding the Scottish by funds provided been applied in accordance have Council with Higher Memorandum with the Financial Institutions. Education of section 1212 of the Companies Act 2006. KPMG LLP is eligible to act as an auditor in terms Report on other legal and regulatory matters and regulatory Report legal on other our of under the terms required are We matters. on the following report to engagement respects: material In our opinion, in all • • The purpose of our audit work and to whom we we whom and to of our audit work The purpose our responsibilities owe Court the University to solely is made This report with in accordance of Aberdeen the University for Act (Scotland) 12 of the Universities paragraph as charity role Court’s 1966 and, in the University of the with section 44(1)(c) in accordance trustees, Act (Scotland) Investment Charity and Trustee 10 of the Charities Accounts 2005 and regulation amended). Our 2006 (as Regulations (Scotland) might we that so been undertaken has audit work the University for Court the University to state to required are we matters those of Aberdeen no and for report them in an auditor’s to state permitted by extent the fullest To purpose. other responsibility or assume accept do not we law, and the than the University other anyone to of Aberdeen the University for Court University the or for this report, for our audit work, for formed. have opinions we Derbyshire David Auditor Statutory of KPMG LLP, and on behalf for Accountants Chartered AB10 1JB Aberdeen Place Albyn 37 2018 11 December Item 11.a Annual Report 2018.pdf - Page 67 of 102
the University has not kept proper accounting accounting proper kept has not the University or records; agreement in not are statements the financial or records; with the accounting and the information all received not have we our audit. for require we explanations • • • Matters on which we are required to report by by report to required are on which we Matters exception (Scotland) Charities Accounts Under the to required are amended) we 2006 (as Regulations in our opinion: if, you to report We have nothing to report in these respects. in these report to nothing have We of Aberdeen’s the University for Court University responsibilities set in their statement fully more As explained the for Court the University 43-45, out on pages the for: is responsible of Aberdeen University for and statements of the financial preparation fair view; a true and give they that being satisfied is necessary as it determines control such internal statements of financial the preparation enable to whether misstatement, material from free are that and the group assessing or error; fraud due to as a going continue ability to University’s parent related matters as applicable, disclosing, concern, concern and using the going concern; going to to it either intends unless basis of accounting or to University or the parent the group liquidate but alternative or has no realistic operations, cease do so. to responsibilities Auditor’s assurance reasonable obtain to are Our objectives as a whole statements about whether the financial whether due misstatement, material from free are our opinion in an issue and to or error, fraud to is a high assurance Reasonable report. auditor’s that guarantee but does not of assurance, level with ISAs (UK) in accordance an audit conducted when it misstatement a material detect will always or error fraud from arise can Misstatements exists. or in individually if, material considered and are to be expected reasonably could they aggregate, on taken decisions of users the economic influence statements. the basis of the financial is of our responsibilities description A fuller at: website on the FRC’s provided www.frc.org.uk/auditorsresponsibilities Overall Page 135 of 323 Item 11.a Annual Report 2018.pdf - Page 68 of 102 68 FINANCIAL
FINANCIAL STATEMENTS UoA STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE - YEAR ENDED 31 JULY 2018 6969 - - 195 926 2017 7,581 (249) 3,061 3,955 £000 4,484 18,422 53,210 71,944 18,566 (2,643) 32,854 74,300 60,974 12,065 12,065 (6,108) (6,357) 134,520 (6,526) 222,459 228,985 University - Overall Page 136 of 323 195 929 2017 (834) (249) 3,797 3,955 £000 4,484 6,384 18,422 53,210 18,566 32,854 72,209 74,300 60,974 (3,480) 10,868 10,868 (7,305) (7,554) 134,520 (6,788) 229,250 222,462 Consolidated Year ended 31 July 31 July 2016 31 July ended 31 July Year - - (3) 261 2018 1,842 1,249 3,819 2,755 3,655 £000 6,574 6,574 13,255 (1,237) 18,635 31,286 74,752 55,842 56,079 136,013 68,449 (7,283) (6,681) (6,681) 219,469 226,752 University - Item 11.a Annual Report 2018.pdf - Page 69 of 102 261 1,251 (519) 2,361 (936) 2018 2,755 6,975 3,655 3,047 £000 9,730 9,730 13,255 18,635 31,286 74,752 55,842 56,079 136,013 68,646 (7,478) (3,525) (3,525) 219,471 226,949 Year ended 31 July 31 2017 ended 31 July Year Consolidated 21a 14 15 12 13 10 11 7 8 9 3 4 5 6 Note 1 2 Unrestricted comprehensive income for the year for income comprehensive Unrestricted the year for income comprehensive Total Total comprehensive income for the year for income comprehensive Total the year for income comprehensive Endowment Actuarial gain in respect of pension schemes in respect gain Actuarial the year for income comprehensive Total (Deficit) for the year for the (Deficit) Taxation (Deficit) before tax (Deficit) before Gain on non-current investments Gain on non-current Share of operational deficit in joint venture deficit in joint of operational Share Gain/(loss) on disposal of fixed assets of fixed on disposal Gain/(loss) Unrealised (loss) on revaluation of investment properties of investment on revaluation (loss) Unrealised (Deficit) before other gains/(losses) and share of operating of operating and share gains/(losses) other (Deficit) before venture of joint surplus/(deficit) Total expenditure Total Interest and other finance costs finance and other Interest Depreciation Expenditure costs Staff expenses Other operating Total income Total Endowments and donations and Endowments Research grants and contracts grants Research Other income income investment and Endowment Income contracts and educational fees Tuition body grants Funding Statement of Comprehensive Income and Expenditure Expenditure and Income of Comprehensive Statement 2018 31 July ended Year - - - - 9,730 6,574 £000 Total 13,255 13,255 18,422 18,422 12,065 (6,681) (3,525) (7,554) 10,868 (6,357) 361,291 379,930 373,356 389,676 379,946 369,078 ------Overall Page 137 of 323 £000 (5,382) (5,382) (5,382) (5,382) (5,079) (5,079) (5,079) (5,079) 185,913 180,531 193,533 183,072 reserve 190,992 188,454 Revaluation Revaluation 9,201 5,382 5,382 £000 11,463 5,079 5,079 12,357 13,255 13,255 18,422 18,422 12,660 (9,436) (6,280) (10,841) 134,231 (12,038) 158,051 141,645 128,985 145,694 150,846 Unrestricted ------Item 11.a Annual Report 2018.pdf - Page 70 of 102 2,755 2,755 2,755 2,755 £000 4,484 4,484 4,484 4,484 41,314 41,314 48,553 48,553 45,798 45,798 Endowment Income and expenditure account and expenditure Income Balance at 1 August 2016 at Balance Consolidated statement expenditure and the income from Surplus/(deficit) year for the income/(deficit) comprehensive Total statement expenditure and the income from Surplus/(deficit) income Other comprehensive Other comprehensive income Other comprehensive reserves and expenditure and income revaluation between Transfers 1 August 2017 at Balance Transfers between income and expenditure reserves expenditure and income between Transfers year for the income/(deficit) comprehensive Total statement expenditure and the income from Surplus/(deficit) year for the income/(deficit) comprehensive Total Balance at 1 August 2016 at Balance Balance at 31 July 2018 31 July at Balance University income Other comprehensive reserves and expenditure and income revaluation between Transfers Balance at 1 August 2017 at Balance statement expenditure and the income from Surplus /(deficit) income Other comprehensive Transfers between revaluation and income and expenditure reserves and expenditure and income revaluation between Transfers year for the income/(deficit) comprehensive Total 2018 31 July at Balance Consolidated and University Statement of Changes in Reserves in Reserves of Changes Statement and University Consolidated 2018 31 July ended Year
CONSOLIDATED AND UNIVERSITY STATEMENT OF CHANGES IN RESERVES - YEAR ENDED 31 JULY 2018 UoAUoA 71 BALANCE SHEETS AS AT 31 JULY 2018 71 - 277 256 2017 1,385 £000 4,662 19,261 2,560 61,208 47,261 33,268 26,359 45,798 66,924 54,082 185,913 141,645 56,642 503,422 164,608 373,356 373,356 (13,947) 608,553 594,606 University 277 256 Overall Page 138 of 323 2017 1,385 18,331 £000 4,662 2,560 27,021 61,226 19,208 48,593 45,798 54,082 47,870 38,099 56,642 145,694 188,454 601,196 164,608 614,552 (13,356) 379,946 379,946 504,590 Consolidated - - 141 277 1,190 2018 69,113 £000 3,897 18,138 30,911 41,674 32,052 48,553 49,190 493,511 64,977 180,531 42,864 160,269 150,846 379,930 379,930 (15,787) 583,063 598,850 University David Beattie MA, CPFA Beattie David of Finance Director - 141 277 1,190 2018 21,213 £000 3,897 17,812 51,301 37,184 41,674 31,350 48,553 158,051 52,704 65,000 183,072 42,864 160,269 Item 11.a Annual Report 2018.pdf - Page 71 of 102 494,634 605,105 389,676 389,676 (12,296) 592,809 Consolidated 21a 21b 22 19 20 23 16 17 18 14 15 13 13 13 13 Note Martin Gilbert FRSE Court of the University Senior Governor Total funds Total Unrestricted reserves Unrestricted reserve and expenditure Income reserve Revaluation Total net assets Total Provisions provisions Pension Other provisions reserves Restricted reserve – endowment reserve and expenditure Income Less: Creditors: amounts falling due within one year amounts falling Creditors: Less: than one year more due after amounts falling Creditors: Less: Cash and cash equivalents Cash and cash liabilities Net current liabilities current less assets Total Current assets Current Stock Trade and other receivables (including debtors over one year: one year: over (including debtors receivables and other Trade £1,000,000, 2017:nil) Investments Non-current investments Non-current in joint venture Investment Investment properties Investment Intangible assets Intangible Non-current assets Non-current assets Tangible assets Heritage The Accounts set out on pages 69 to 72 were approved by the University Court on 11 December 2018 and signed on its behalf by: 2018 and signed on its behalf 11 December on Court the University by approved were 72 to 69 out on pages set The Accounts Balance Sheets as at 31 July 2018 31 July as at Sheets Balance MA, MLitt, PhD, AcSS MA, MLitt, Boyne PhD, George Professor and Vice-Chancellor Principal - - 17 84 (17) 834 929 (84) 1,413 (100) 2017 5,149 (929) 5,813 5,813 £000 2,487 3,480 2,468 (1,169) 2,508 5,086 (1,742) 27,021 (1,339) (3,471) 16,124 21,208 18,566 (7,554) (3,797) (2,495) (2,005) (12,506) (4,266) (6,045) Overall Page 139 of 323 62 45 115 519 (62) 936 847 (96) 1,251 1,385 2018 2,166 1,070 4,327 11,343 2,526 £000 2,970 (1,251) (1,187) 4,329 4,329 27,021 (1,339) (1,795) 31,350 (2,361) 18,635 17,269 (3,525) (3,626) (3,047) (11,690) (4,355) (8,585) (13,889) 5 5 13 13 12 15 14 14 14 10 10 10 23 23 Note 9 & 13 6 & 22 6 & 22 Item 11.a Annual Report 2018.pdf - Page 72 of 102 Capital element of finance lease and service concession payments concession service and lease of finance element Capital Endowment cash received cash Endowment of amounts borrowed Repayments in the year equivalents and cash in cash Increase equivalents and cash in cash Movement Payments made to acquire fixed assets fixed acquire to made Payments investments asset non-current New activities financing from Cash flows paid Interest payments concession service and lease of finance element Interest beginning of the year at equivalents Cash and cash Decrease in stock Decrease in debtors Decrease income Endowment during the year received/released grants Capital assets of fixed on sale Profit activities operating from inflow Net cash activities investing from Cash flows assets of fixed sales from Proceeds receipts grant Capital investments of non-current Disposal of deposits Withdrawal income Investment end of the year at equivalents Cash and cash Cash flow from operating activities operating from Cash flow year for the Deficit (Gain) on investments provisions and other in creditors Increase/(decrease) activities or financing investing Adjustments for income Investment payable Interest Adjustments for non-cash items non-cash Adjustments for Depreciation assets Impairment of fixed or loss) gain actuarial (excluding in pension provisions Increase venture deficit in joint of operating Share Unrealised deficit on revaluation of investment properties of investment revaluation deficit on Unrealised Consolidated Cash Flow Statement Statement Cash Flow Consolidated 2018 31 July ended Year
CONSOLIDATED CASH FLOW STATEMENT - YEAR ENDED 31 JULY 2018 UoAUoA
73
STATEMENT OF PRINCIPAL ACCOUNTING POLICIES AND ESTIMATION TECHNIQUES Overall Page 140 of 323
Item 11.a Annual Report 2018.pdf - Page 73 of 102 STATEMENT Overall Page 141 of 323 Item 11.a Annual Report 2018.pdf - Page 74 of 102 Restricted donations - the donor has specified that the - the donor has specified that donations Restricted objective. a particular for must be used donation - the donor has permanent endowments Unrestricted invested to be permanently the fund is specified that benefit of the general for stream an income generate to the University. c. Basis of consolidation c. Basis include the University statements financial The consolidated The results 2018. 31 July to the year for and its subsidiary the period of during or disposed acquired of subsidiaries expenditure and income in the consolidated included are of the date or up to acquisition of the date from account on fully eliminated are and profits sales Intra-group disposal. in undertakings is included A list of subsidiary consolidation. 29. note include the do not statements financial The consolidated Students’ University of Aberdeen and expenditure income Development of Aberdeen or the University Association or dominant control exert does not as the University Trust decisions. policy over influence for accounted are and joint ventures companies Associated using the equity method. recognition Income funding a. Grant Funding Scottish including grants revenue Government in recognised are grants and research grants block Council recognises the periods in which the University over income to is intended which the grant for costs the related is deferred grant part of a government Where compensate. and within creditors income as deferred it is recognised due and due within one year creditors between allocated as appropriate. than one year more after non-government from grants) (including research Grants is when the University in income recognised are sources conditions related and performance the income to entitled of performance in advance received been met. Income have as deferred being met is recognised conditions related to sheet and released on the balance within creditors income met. are as the conditions income and endowments b. Donations restrictions with donor imposed and endowments Donations to is entitled University when the in income recognised are reserve within the restricted is retained the funds. Income in line with such restrictions it is utilised until such time that reserves general to is released which point the income at transfer. a reserve through in income recognised are with no restrictions Donations the funds. Investment to is entitled when the University in recorded are of endowments and appreciation income either and are arise which they for the year for income the terms to according income or unrestricted restricted fund. endowment the individual applied to and endowments of donations main types four are There reserves: identified within 1. 2. In the preparation of the consolidated financial statements, statements, financial of the consolidated In the preparation that and assumptions estimates has made management as and liabilities for assets reported the amounts affect for and the amounts reported sheet date the balance at could Actual results during the year. and expenses income principally used are Estimates estimates. these from differ and mortality valuation economic when determining liabilities scheme pension defined benefit for assumptions fixed of tangible value the carrying for and in accounting and impairment, and of depreciation way by assets, by properties, of investment value the fair for accounting required is also Estimate 13). (note revaluation of annual way 21b. in note disclosed provisions, of other in respect Critical accounting judgments include the evaluation of the of the the evaluation judgments include accounting Critical as a multi-employer (USS) Scheme Superannuation Universities meets the the USS that has judged The University scheme. set reasons for the scheme definition of a multi-employer below. pension schemes for policy out in the accounting of the in calculation that determined has also The University schedule 2018, the current 31 July at end provision year USS that reflects This judgment used. be should of contributions Further completed. been formally has not the 2017 valuation the 21a and 27 to has been included in notes disclosure respect of this judgment. in statements financial b. Critical accounting judgments and estimates accounting b. Critical management requires statements of financial The preparation the affect that estimates judgments and adopt make to reporting period. during the statements financial a. Basis of preparation a. Basis of accordance in prepared been have statements The financial (SORP): Practice of Recommended with the Statement in (2015) and Higher Education and Further for Accounting The (FRS) 102. Reporting Standard with Financial accordance has applied public benefit entity is a and therefore University Charities of FRS102. requirement public benefit the relevant Scottish Charity Regulator of the with the Office registered and of the Charities remit within the statutory fall (“OSCR”) of Act 2005 and, in respect (Scotland) Investment Trustee Charities Accounts the preparation, statements financial 14 of amended). Regulation 2006 (as Regulations (Scotland) their prepare to universities allows the 2006 Regulations SORP. with the accordance in statements financial with the accordance in prepared are statements The financial of revaluation by the (modified convention cost historical and equity investments endowment properties, investment investments). and all is sterling of the group The functional currency thousand the nearest to presented been amounts have pounds. of its including details of the University, position The financial and their borrowings term and its long liabilities net current on pages Review the Financial set out in is covenant, financial on to be prepared continue statements 65. The financial to 61 that considers Court basis as the University concern a going continue in to resources financial has adequate the University future. the foreseeable for existence operational of preparation Basis
LIFE-CHANGING ACHIEVEMENT UoAUoA 75 LIFE-CHANGING ACHIEVEMENT 75 Overall Page 142 of 323 Item 11.a Annual Report 2018.pdf - Page 75 of 102 an amount equal to the lower of their fair value and the and the value their fair of the lower to equal an amount the start of at payments lease of the minimum value present the lease. the apportioned between are payments Minimum lease reduction liability. of the outstanding and the charge finance during the period each to allocated is charge The finance of periodic rate a constant produce as to so term lease liability. of the balance on the remaining interest costs Borrowing period in the as expenditure recognised are costs Borrowing incurred. are in which they arrangements concession Service are arrangements concession service under held assets Fixed of the value the present Sheet at the Balance on recognised into brought are when the assets payments minimum lease liability. financial with a corresponding use are arrangement concession under the service Payments and charges finance costs, service between allocated liability the financial reduce to repayments liability financial of the arrangement. the life nil over to assets Fixed depreciation accumulated less cost at stated are assets Fixed of fixed items Certain impairment losses. and accumulated replacement depreciated to been revalued had that assets are the SORP to of transition the date on or prior to cost being the revalued on the basis of deemed cost, measured reserve A revaluation of transition. the date amount at of unrestricted component as a separate disclosed remains reserves. and depreciation cost historic between The difference is transferred deemed cost on revalued based depreciation and expenditure the income to reserve the revaluation from period. reporting in each reserve a. Land and buildings for or deemed cost cost at stated are Land and buildings Subsequent the SORP. to transition prior to acquired those cost. at is recorded expenditure capital rental for held and buildings is land property Investment in use than for rather appreciation or capital income measured are properties Investment services. delivering with value fair at and subsequently cost at initially in the surplus or deficit in the recognised movements not are Properties Income. of Comprehensive Statement market to according annually revalued but are depreciated year. each 31 July at conditions of assets reviews impairment performs The University that indicate in circumstances or changes events whenever An impairment be recoverable. not amount may the carrying amount of an asset, when the recoverable is recognised loss and its value net realisable which is the higher of the asset’s amount. than its carrying is less in use, value its after asset fixed a tangible to in relation incurred Costs the extent to capitalised are or construction purchase initial to the benefits future the expected increase they that Restricted expendable endowments - the donor has the donor - endowments expendable Restricted than the purchase other objective a particular specified and the assets, fixed of tangible or construction the capital. use to has the power University the donor has - permanent endowments Restricted to invested to be permanently is the fund that specified particular a be applied to to stream an income generate objective. Finance leases Finance the risks all assumes substantially the University where Leases classified are asset of the leased of ownership and rewards in the balance recognised with the asset leases as finance and leases of finance way by acquired assets sheet. Leased at recognised initially are liabilities lease the corresponding e. Capital grants e. Capital over in income recognised are grants capital Government grants Other capital of the asset. life useful the expected is entitled when the University within income recognised are conditions related any performance the funds subject to to being met. benefits Employment and benefits such as salaries employment Short term in the as an expense recognised are absences compensated the University. to service render in which the employees year accrued are leave, annual example for benefits, Any unused amount the University as the additional and measured entitlement. of the unused as a result pay to expects leases Operating on a charged are leases of operating in respect Costs Any lease term. the lease basis over straight-line the minimum lease over spread are or incentives premiums term. d. Other income to is credited or services of goods sale the from Income and Income of Comprehensive Statement the Consolidated the supplied to are or services goods when the Expenditure been have of the contract terms or the customers external satisfied. the Consolidated to is credited income Investment on a and Expenditure Income of Comprehensive Statement basis. receivable agent as paying and disburses receives University the Funds the income from excluded of a funding body are on behalf is the University where of the University and expenditure benefit economic minimal risk or enjoys minimal to exposed the transaction. to related 4. income fee c. Tuition a is not which of any expenditure gross is stated income Fee the Consolidated to and is credited waiver or a fee discount period in the over and Expenditure of Income Statement amount of the the studying. Where which students are payment prompt for a discount by is reduced, tuition fee net of the is shown receivable income waiver, a fee or by gross for accounted are and scholarships Bursaries discount. income. from deducted and not as expenditure 3. Overall Page 143 of 323 Item 11.a Annual Report 2018.pdf - Page 76 of 102 Investments that spin out companies including investments, Listed assets as fixed in, held has an interest the University with value market at shown are assets or endowment or Deficit. in the Surplus Investments recognised movements investments and cost at shown are undertakings in subsidiary balance in the consolidated shown are in joint ventures The University’s assets. of net share sheet as the attributable is Ventures respect of Joint of any surplus or deficit in share account. and expenditure income in the recognised Stock of the lower at is valued in progress, including work Stock, is provision necessary, Where value. and net realisable cost stock. and defective slow-moving obsolete, for made and development Research the University by incurred costs and development Research incurred year written off in the are behalf on its own is that software of any equipment or with the exception policy. accounting in line with the University’s capitalised Taxation of charity within the meaning is an exempt The University Act 2005 and, (Scotland) Investment Charities and Trustee of Section 506(1)as such, is a charity within the meaning of Act 1988. The University Taxes and Corporation the Income and & Customs HM Revenue as a charity by is recognised of the the Office of charities by on the index is recorded a charity within the It is therefore Charity Regulator. Scottish Act 2010 the Finance 6 to 1 of Schedule of Paragraph meaning from exempt is potentially the University and accordingly, within received gains or capital of income in respect taxation the Corporation of sections 478-488 by covered categories of Chargeable Act 2010 or Section 256 of the Taxation Tax or gains such income that the extent to Gains Act 1992, Subsidiary purposes. charitable to applied exclusively are tax. corporation to liable are companies of in respect exemption no similar receives The University on inputs is included in VAT Irrecoverable Added Tax. Value of in respect VAT Any irrecoverable of such inputs. the costs cost. in their is included assets fixed tangible equivalents Cash and cash on demand repayable in hand, deposits Cash includes cash are on demand if they repayable are Deposits and overdrafts. without penalty. hours within 24 available in practice liquid investments highly short term, are Cash equivalents with amounts of cash known to convertible readily are that value. in risk of change insignificant currency Foreign of the rate at recorded are transactions currency Foreign assets Monetary of the transaction. the dates at exchange sterling into translated are currencies in foreign and liabilities differences exchange Foreign rates. end year financial at of in the Statement recognised are arising on translation and Expenditure. Income Comprehensive f. Intangible assets Intangible f. over amortised are software) (i.e. computer assets Intangible 15 years. exceeding not life, economic useful their remaining e. Repairs and maintenance maintains asset fixed a tangible that ensure to Expenditure is of performance standard recognised its previously Income of Comprehensive in the Statement recognised has a The University in the period in which it is incurred. on an which is reviewed programme, maintenance planned basis. annual d. Heritage assets d. Heritage exhibits, a number of collections, holds The University artistic or scientific of historical, assets and other artefacts, have 2011 31 July before acquired assets Heritage importance. or of cost estimates reliable since been capitalised, not benefit basis. Acquisitions on a cost- available not are value of in the case or, cost at capitalised 1 August 2011 are from of obtaining the cost where will be valued assets, donated of the to the user than the benefit greater is not value in policy accounting In line with the statements. financial heritage capitalising for threshold of equipment, the respect irreplaceable are that assets is £20,000. Heritage assets be attributed, can value which no reliable and for originals depreciated not are assets Heritage be capitalised. will not mean value and high residual life economic their long since be material. not would any depreciation that c. Depreciation are buildings Freehold depreciated. is not land Freehold life economic useful the expected over depreciated years. 30 and 75 between normally the University, to useful anticipated asset’s a depreciable material, Where and future and the accumulated annually is reviewed life adjusted. are charges depreciation of course in the assets fixed on tangible Depreciation first are when the assets provided is only construction equipment is acquired Where use. operational into brought the over it is depreciated specific grants with funding from for is provided No depreciation grants. of the research life properties. on investment of equipment, on the value is provided Depreciation line basis, normally including IT equipment on a straight years. 2 – 10 between b. Equipment costing and furniture including computers Equipment, of related group or item individual than £20,000 per less other items All of purchase. year written off in the is items, are leases under finance acquired Assets capitalised. are of the element capital and the assets included in fixed as a liability. is shown commitments leasing University. The cost of any such enhancement is added is added enhancement any such of cost The University. asset fixed the tangible amount of carrying the gross to concerned.
LIFE-CHANGING ACHIEVEMENT UoAUoA 77 LIFE-CHANGING ACHIEVEMENT 77 Overall Page 144 of 323
Item 11.a Annual Report 2018.pdf - Page 77 of 102 plan contribution a. Defined benefit is a post-employment contribution plan A defined contributions fixed pays the University under which plan or constructive no legal entity and will have a separate into for further amounts. Obligations pay to obligation are plans contribution pension defined to contributions in the statement the income in as an expense recognised employees. by rendered are services periods during which plan b. Defined benefit plans benefit post-employment are plans Defined benefit Under defined plans. contribution than defined other the to provide is obligation the University’s benefit plans, and former employees, and to current benefits agreed than less or more cost benefits will risk (that actuarial set on assets returns risk (that and investment expected) expectations) from fund the benefits will differ aside to The Group the University. by borne, in substance, are under defined its obligations for a liability recognise should This net defined benefit assets. net of plan benefit plans, of benefit amount as the estimated is measured liability in their service for in return earned have employees that its determine to periods, discounted and prior the current assets. of plan bid price) (at value the fair less value, present sheet the balance at is the yield rate discount The liability the currency bonds which match rated on AA credit date of the pension liabilities. the duration to and approximate actuary using a qualified by is performed The calculation the calculation method. Where unit credit the projected to is limited asset of the recognition in a net asset, results the recover to is able which the University to the extent in the future contributions reduced surplus either through refunds. or through scheme c. Multi-employer USS is a multi-employer sectionThe defined benefit of the individual to attributed not are The assets scheme. is set. The rate contribution and a scheme-wide employers risks associated actuarial to exposed is therefore University identify its share to and is unable employers with other on a of the scheme and liabilities assets of the underlying section 28 by basis. As required and reasonable consistent therefore the University benefits”, “Employee of FRS 102, were scheme as if it defined benefit the USS for accounts result, the amount scheme. As a contribution a defined represents expenditure and the income to charged The University the scheme. to payable contributions for liability and provision expense an immediate recognises that payable which are of contributions value the present deficit funding obligations. from arise Reserves or unrestricted. restricted as classified are Reserves which, include balances reserves endowment Restricted as a held are the University, to endowment through must hold fund which the University restricted permanently include balances reserves Other restricted in perpetuity. and a specific purpose the donor has designated where of these in the use is restricted the University therefore funds. schemes Pension the are staff the University’s for schemes The principal and the Scheme (USS) Superannuation Universities’ Assurance & Life Superannuation of Aberdeen University the to contributes also Scheme (UASLAS). The University is or includes scheme (SPF). Each Fund Pension Strathclyde years every three valued plan which is a defined benefit actuaries. A small independent qualified professionally by schemes. other pension remain in number of staff Other financial instruments Other financial meeting the definition of instruments not Other financial fair at initially recognised Instruments are Basic Financial financial other recognition initial to Subsequent value. with changes value fair at measured instruments are hedging except in the Surplus or Deficit recognised hedging relationship. instruments in a designated Basic financial instruments Basic financial at initially recognised are debtors and other Trade Trade costs. transaction attributable less price transaction transaction at initially recognised are creditors and other initial to Subsequent costs. transaction plus attributable price using the amortised cost at measured are they recognition in the losses any impairment less method, interest effective normal beyond is deferred If payment debtors. of trade case of value the present at then it is measured terms, business of instrument rate a market at discounted payments future debt instrument. a similar for and call balances cash comprise equivalents Cash and cash and on demand repayable are that Bank overdrafts deposits. management cash part of the University’s an integral form equivalents and cash of cash included as a component are statement. flow of the cash only the purpose for Provisions, contingent liabilities and contingent assets and contingent liabilities contingent Provisions, when statements in the financial recognised are Provisions or constructive) (legal obligation has a present the University of a transfer that it is probable of a past event, as a result the obligation settle to required benefits will be economic of of the amount be made can estimate and a reliable is a provision as recognised The amount the obligations. of money the time value where value present to discounted market current reflects used rate The discount is material. any and reflects of money of the time value assessments liability. to the risks specific of a note, way by disclosed are liabilities Contingent met and includes is not the definition of a provision where obligation; than a present rather possible scenarios: three of economic outflow than a probable rather a possible the possible measure reliably to benefits; an inability outflow. economic where of a note, way by disclosed are assets Contingent a arising from asset than present rather is a possible, there past event. 575 638 565 682 320 283 590 959 7,139 2017 1,785 1,354 4,417 7,014 5,184 3,474 9,275 £000 9,962 £000 2,294 3,087 4,046 19,733 23,175 12,795 13,294 53,210 45,424 24,655 74,300 60,974 Overall Page 145 of 323 168 330 366 877 1,335 3,401 2018 11,831 9,018 3,424 4,477 9,655 £000 2,358 4,996 6,859 14,823 22,617 18,269 46,010 74,752 25,859 55,842 56,079 Item 11.a Annual Report 2018.pdf - Page 78 of 102 Alzheimer’s Research project Research Alzheimer’s Grant HSRU Core Firth the Moray for Programme Monitoring Marine Mammal Strategic Reviews Assessment Technology RESAS Main Programme RESAS as specified activities out various carry To Grant HERU Core Project title Project
Research grants and contracts grants Research Funding body grants Funding Tuition fees and educational contracts educational and fees Tuition
Consolidated and University Consolidated fees Scottish EU fees RUK fees Non-EU fees Non-credit bearing course fees course bearing Non-credit Other contracts University and Consolidated - teaching funding SFC general funding - research SFC general grant development research Strategic Capital grants released from deferred income deferred from released grants Capital Other SFC grants Consolidated and University Consolidated councils Research charities UK based UK central and local government, health and hospital authorities and hospital health government, and local UK central bodies EU government EU other UK industry, commerce and public corporations commerce UK industry, Other overseas Other sources Wista Laboratories Ltd Laboratories Wista Office Chief Scientist’s Government Scottish Research Health for Institute National RESAS 4D Pharma Research Office Chief Scientist’s
Research grants and contracts income includes the following significant grants: significant includes the following income and contracts grants Research body Funding 3.
2. 1.
NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 JULY 2018 UoAUoA NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 7979 - - - 4 111 50 84 130 910 195 327 327 277 692 796 926 2017 2017 5,473 17,513 7,385 1,207 £000 £000 £000 13,691 10,316 5,609 105,781 32,854 134,520 University - - 4 111 30 84 133 312 (111) 195 601 282 692 796 289 929 2017 2017 2018 1,196 18,101 5,473 7,385 £000 £000 13,691 5,609 Overall Page 146 of 323 10,665 32,854 107,358 136,013 Number Consolidated 4 62 139 139 192 199 261 502 5,217 1,057 2018 5,581 £000 1,249 £000 11,483 8,499 31,286 University 1 1 4 62 194 199 261 502 1,251 5,217 2018 1,057 2018 5,581 £000 11,483 8,499 31,286 Number Item 11.a Annual Report 2018.pdf - Page 79 of 102 Consolidated
Other income Other
Donations and endowments Donations Investment income Investment Staff costs Staff Compensation arrangements for members of staff earning in excess of £100,000 excess earning in of staff members for arrangements Compensation Number of payments in excess of £100,000 during the year in excess Number of payments Compensation for loss of office payable to senior post holders: senior to payable of office loss for Compensation Total the to Secretary Principals, Vice Principal, of the Senior Vice comprising Team, Senior Management the University’s are personnel management Key of Finance. and Director University Staff costs for key management personnel excluding employer’s pension contribution pension employer’s excluding personnel management key for costs Staff Sub-total expenses and related payment notice Contractual was £312,000 year in the financial Sir Ian Diamond, Professor Principal, of the former and pension contributions) of salary (comprising The remuneration the contractual Including £38,891). (2017: £39,551 which was of the workforce remuneration times) the median 8.4 times (2017: 7.9 This was £327,000). (2017: is 15.0 times the median. the calculation below, described payment notice Due of appointing a successor. begin the process to the University allow to retire to his intention intimated Sir Ian Diamond Professor In August 2017, until his successor in office remain would Diamond Professor that agreed it was process, the recruitment complete to time required the considerable to of a in respect of £282,000 a payment to entitled 2018, he was in July retire to his notice gave formally Diamond and in post. Professor appointed was expenses. of related in respect was of £7,000 period. A further payment 12 month notice contractual Consolidated and University Consolidated Salaries costs security Social 21a) (note on pension provisions Movement Other pension costs USS to contributions Pension Emoluments of the Principal and Vice-Chancellor: Professor Sir Ian Diamond Professor and Vice-Chancellor: Emoluments of the Principal Salary Donations with restrictions Donations New endowments (note 22) (note endowments New Other investment income Other investment Investment income from endowments (note 22) (note endowments from income Investment Capital grants received/released grants Capital Other grants VAT recovery VAT Health authorities Health Consultancy Residences, catering and conferences catering Residences,
7. 4.
6. 5. 1 1 1 2 5 5 5 19 18 114 133 194 910 364 249 1,101 466 2017 2017 5,914 2,621 4,043 £000 6,863 63,811 16,539 10,864 25,576 134,520 Number - - 3 7 2 2 5 18 Overall Page 147 of 323 23 117 197 (111) 109 373 437 256 2018 2018 1,086 3,653 11,632 £000 6,947 6,359 2,575 17,363 25,307 64,863 136,013 Number Item 11.a Annual Report 2018.pdf - Page 80 of 102
Staff costs - continued - costs Staff £170,000 - £179,999 £170,000 £180,000 - £189,999 £160,000 - £169,999 £130,000 - £139,999 £140,000 - £149,999 £150,000 - £159,999 £120,000 - £129,999 £110,000 - £119,999 Remuneration of other higher paid staff higher paid of other Remuneration £100,000 - £109,999 Staff costs by activity – Consolidated and University Consolidated activity – by costs Staff departments Academic services Academic Administration and central services and central Administration Premises adjustments cost Pension Residences, catering and conferences catering Residences, and contracts grants Research Other expenses Other expenses Academic services Academic Premises and conferences catering Residences, and contracts grants Research Administration and central services and central Administration
Average staff numbers by activity - full time equivalent basis activity - full time equivalent by numbers staff Average departments Academic 7. Remuneration of other higher paid staff (which excludes the Principal) is stated excluding salary sacrifice and employer’s pension contributions pension and employer’s sacrifice salary excluding is stated the Principal) excludes (which staff higher paid other of Remuneration
NOTES TO THE FINANCIAL STATEMENTS - YEAR ENDED 31 JULY 2018 UoAUoA NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 81 - 51 25 103 105 184 922 1,169 8,114 1,339 9,213 2017 1,447 7,012 8,313 8,140 2,637 3,545 £000 3,059 3,955 6,489 19,528 13,249 71,944 18,566 University - 53 25 Overall Page 148 of 323 103 105 184 922 1,169 8,114 1,339 9,213 2017 1,447 8,313 8,140 7,277 2,637 3,545 £000 3,955 3,059 6,489 19,528 13,249 18,566 72,209 Consolidated - 13 51 94 163 104 488 1,129 1,187 1,339 7,241 2018 9,347 9,766 £000 6,234 3,038 3,656 2,389 5,604 3,655 8,807 17,209 13,048 18,635 68,449 University - 13 53 94 163 104 Item 11.a Annual Report 2018.pdf - Page 81 of 102 488 1,129 1,187 1,339 2018 7,438 9,347 9,766 £000 6,234 3,038 3,656 2,389 5,604 3,655 8,807 17,209 13,048 18,635 68,646 Consolidated
Interest and other finance costs finance and other Interest
Depreciation by activity by Depreciation Other operating expenses expenses operating Other
Premises Administration and central services and central Administration Academic departments Academic services Academic Research grants and contracts grants Research Other expenses Residences, catering and conferences catering Residences, include: (including VAT) expenses Other operating of audit services in respect remuneration auditors External Internal auditors remuneration in respect of non-audit services in respect remuneration auditors Internal External auditors remuneration in respect of non-audit services in respect remuneration auditors External of audit services in respect remuneration auditors Internal Interest on pension scheme liabilities (note 21a) (note liabilities on pension scheme Interest Finance leases Finance Loan interest Premises and conferences catering Residences, and contracts grants Research Other expenses Administration and central services and central Administration Academic departments Academic
Non-audit services paid to the external auditors in the current year are for other assurance services. Prior year external non-audit fees (including fees non-audit external Prior year services. assurance other for are year in the current auditors the external paid to Non-audit services services. assurance and £15,000 of other services advisory £10,000 of tax comprise VAT) services Academic 9. by activity by
8. 10. - 910 (936) 2,166 2017 £000 10,174 Total £000 (4,831) 18,635 83,619 20,412 (4,758) 15,506 16,897 79,697 25,857 99,662 631,247 23,680 46,026 547,628 535,992 635,654 228,985 University - 106 383 488 (488) (488) 7,465 3,186 £000 2,803 4,662 7,083 3,897 - Overall Page 149 of 323 Assets 910 2017 £000 15,771 Intangible Intangible 20,412 16,897 79,697 25,857 23,680 46,026 229,250 - - Consolidated 4,843 11,575 £000 4,862 11,528 41,904 53,479 (4,270) (4,298) 54,024 42,496 Fixtures, Fixtures, Fitting and Equipment (3) (111) 2018 14,101 £000 15,479 26.271 43,004 20,904 26.804 80,300 ------226,752 277 277 277 277 University £000 Assets Heritage Heritage Item 11.a Annual Report 2018.pdf - Page 82 of 102 (111) ------21 2018 14,101 £000 3,047 15,676 26,271 43,004 20,904 26,804 80,300 (936) £000 226,949 37,184 37,184 38,099 38,099 Properties Consolidated Investment Investment ------548 548 1,621 1,621 1,073 £000 Assets in Assets Course of Course Construction - - (45) 4,131 1,678 £000 38,912 13,390 531,379 53,980 492,467 481,485 535,465 and Buildings Freehold Land Freehold
Disposal of fixed assets of fixed Disposal Fixed assets - Non-current assets - Consolidated assets - Non-current assets Fixed Analysis of total of total Analysis
Additions Revaluation Disposals 2018 At 31 July Cost or Valuation Cost At 1 August 2017 Depreciation At 1 August 2017 Charge for the year for Charge Impairment Net book value 2018 At 31 July Eliminated on disposals Eliminated 2017 At 31 July At 31 July 2018 At 31 July Academic departments Academic Academic services Academic Administration and central services and central Administration Premises Residences, catering and conferences catering Residences, Research grants and contracts grants Research Other expenses Pension cost adjustments cost Pension Gain on disposal of fixed assets of fixed Gain on disposal
The gain is respect of the disposal of surplus land by the Rowett Research Institution Ltd. Institution Research the Rowett by of surplus land of the disposal is respect The gain 12.
13. 11. expenditure by activity by expenditure
NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 UoAUoA NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 83 277 2017 2,166 £000 10,174 £000 4,662 Total (1,237) 18,635 83,561 (4,758) 33,268 (4,786) 99,604 541,629 625,190 529,737 629,341 503,422 541,629 University - 106 383 277 488 Overall Page 150 of 323 2017 (488) (488) 3,186 7,465 £000 4,662 2,803 £000 7,083 4,662 3,897 38,099 Assets 547,628 504,590 Intangible Intangible Consolidated - - 277 11,575 4,843 £000 4,862 2018 11,528 £000 41,904 3,897 53,479 (4,270) (4,298) 54,024 42,496 32,052 493,511 529,737 Fixtures, Fixtures, Fitting and Equipment University ------277 277 277 277 £000 277 Assets 2018 £000 3,897 37,184 Heritage Heritage 494,634 535,992 Item 11.a Annual Report 2018.pdf - Page 83 of 102 ------21 Consolidated £000 (1,237) 33,268 33,268 32,052 32,052 Properties Investment Investment ------548 548 1,621 1,621 1,073 £000 of Construction Assets in Course in Course Assets - - - 4,131 1,678 £000 13,390 53,922 38,854 530,153 491,299 534,284 480,362 and Buildings Freehold Land Freehold
Fixed assets - Non-current assets - University assets Non-current - assets Fixed
Investment properties Investment Tangible assets Tangible assets Heritage assets Intangible The net book value of fixed assets is analysed between: is analysed assets of fixed The net book value At 31 July 2017 At 31 July Net book value 2018 At 31 July At 31 July 2018 At 31 July Eliminated on disposals Eliminated Impairment Charge for the year for Charge Depreciation At 1 August 2017 At 31 July 2018 At 31 July Disposals Revaluation Additions Cost or Valuation Cost At 1 August 2017
As part of the transition to FRS102, the University chose to no longer revalue land and buildings and to use the 31 July 2014 valuation figures as the deemed figures 2014 valuation the 31 July use and to and buildings land revalue no longer to chose the University FRS102, to As parttransition of the is The basis of valuation of Aberdeen. University of Estates, BLE, Mr A Donaldson MRICS, Director by performed was The 2014 valuation of assets. cost The 31 Notes. and Guidance Practice Valuation of Asset Statement Surveyor’s of Chartered Institute out in the Royal as set cost replacement depreciated Surveyors. Chartered J & E Shepherd, by reviewed externally was 2014 valuation July and College part of Marischal Foresterhill, at Aberdeen, in Old located which are buildings and recreational related academic academic, owns The University under held of assets value the net book lease, under a finance is held complex of residence Halls of the Hillhead Part complexes. of Residence Halls various £26.8m). is £25.5m (2017: by the University leases finance respect of in £33.3m) (2017: and £32.1m £38.1m) (2017: £37.2m include respectively 2018 at 31 July value net book assets fixed and University Consolidated BLE, Mr A Donaldson by performed 2018 and was out on 31 July carried basis. This was on an annual be revalued to required are that properties investment of Aberdeen. University of Estates, MRICS, Director with the Memorandum terms of the Financial under the be liable, may the University sold, funds be exchequer by financed and buildings any land Should the proceeds. repay to Council, Funding Scottish 13. 43 514 (519) (916) 2,361 2,361 2017 (834) £000 £000 17,812 Total 3,287 £000 11,690 11,690 69,113 51,301 19,247 18,331 24,165 (4,918) (11,343) (11,343) 48,593 66,924 18,369 20,878 University - - - - - 43 211 514 Overall Page 151 of 323 557 557 346 346 (519) £000 £000 18,542 Other 18,369 (519) (847) 3,345 £000 (4,711) 17,812 18,659 23,370 20,025 Consolidated - 134 134 675 675 2018 (674) (674) £000 2,902 2,902 3,037 3,037 Pensions - - - - - 1,241 1,241 1,133 1,133 (108) (108) £000 Item 11.a Annual Report 2018.pdf - Page 84 of 102 Spin-Outs - 2,335 2,335 £000 10,669 10,669 44,239 44,239 46,574 46,574 (10,669) (10,669) Endowments
Investment in joint venture Investment Non-current investments Non-current
Less: Creditors - amounts due with one year Creditors Less: Consolidated account and expenditure Income tax Deficit before sheet Balance assets Fixed SportScotland funding from Restricted Less: assets of gross Share of net assets Share Current assets Current Epidarex Capital Epidarex CVCP Properties Other non-current investments consist of: consist investments Other non-current (Joint Ltd Sports Village Venture) Aberdeen At 31 July 2018 At 31 July Appreciation Disposals Impairment Additions At 31 July 2018 At 31 July University At 1 August 2017 Additions Disposals Appreciation Consolidated At 1 August 2017 The University holds a 50% share of Aberdeen Sports Village Limited, a company limited by guarantee and registered as a charity. The company provides provides The company a charity. as and registered guarantee by limited a company Limited, Sports Village of Aberdeen a 50% share holds The University pool. This is a joint swimming standard with an Olympic Centre including the Aquatics our students and the wider community, to sporting facilities premier using the for and is accounted as a joint venture is treated The arrangement City Council. and Aberdeen the University by equally owned company venture and sheet of the University balance the consolidated into incorporated are and liabilities assets gross 50% of the company’s equity method, such that gross Income. Comprehensive of Statement consolidated in the University’s is reported 50% of its net income The Group’s subsidiary undertakings are listed in note 29. in note listed undertakings are subsidiary The Group’s the entities and over control is no board there however cost), rights (at 20% of voting out entities which exceed in spin interests has participating The Group withinconsistent are that policies to implement free are investees the a result, As policies. and financial the operating over exerted not is influence significant in sale to a trade with a view investment asset of a fixed is that investee and the investor between of the relationship The substance strategy. the investor’s for as equity. accounted not and are investments asset as fixed disclosed are investments these Therefore, the medium term. £48.4m) (2017: sheet is £50.7m balance in the consolidated value fair at carried assets and pension non-current spin outs of endowments, value The total The movement in the share of net assets from the prior year reflects the University’s share of the loss for the year. for the loss of the share the University’s reflects the prior year from of net assets in the share The movement
15. 14.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 UoAUoA NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 8585 53 256 1,831 2017 1,385 £000 4,945 5,469 3,699 13,739 17,964 19,261 12,679 61,208 20,090 University Overall Page 152 of 323 - 256 1,831 2017 1,385 4,945 3,699 £000 5,469 17,964 13,739 12,679 20,108 61,226 19,208 Consolidated - - 141 5,617 2018 5,218 3,344 £000 2,966 12,253 12,920 18,138 18,528 22,269 64,977 University Item 11.a Annual Report 2018.pdf - Page 85 of 102 - - 141 5,617 2018 3,344 8,293 £000 2,966 12,253 21,213 12,920 18,528 22,292 65,000 Consolidated
Creditors: amounts falling due within one year amounts falling Creditors: Investments Stock Trade and other receivables and other Trade
Short term deposits Short term Stock of finished goods of finished Stock Loans and leases Trade debtors Trade Other grants received on account received Other grants Research grants received on account received grants Research Prepayments and accrued income and accrued Prepayments Trade creditors Trade Amounts due from subsidiary companies subsidiary Amounts due from Social security and other taxation payable taxation and other security Social Accruals and deferred income and deferred Accruals The consolidated debtor figure includes £1.0m that falls due in over one year (2017: nil). (2017: year one over due in falls £1.0m that includes figure debtor The consolidated amortised cost. at carried are receivables and other included within trade instruments Financial Financial instruments included within creditors are carried at amortised cost. at carried are instruments included within creditors Financial
19. 18.
17. 16. - % 96 1,735 2017 3.195 3,319 5.415 Rate 8,518 3,438 3,403 3.072 3,778 £000 21,201 3.000 30,117 10,000 28,382 96,226 84,389 30,000 40,000 99,664 40,096 164,608 University Overall Page 153 of 323 - 96 2031 1,735 2017 3,319 2036 2036 2036 Year 8,518 3,438 3,403 3,778 £000 Term 21,201 30,117 10,000 28,382 96,226 84,389 30,000 40,000 99,664 40,096 164,608 Consolidated - - 3,717 1,247 2018 3,180 3,816 3,344 £000 £000 9,045 19,916 4,600 10,400 15,000 10,000 10,000 24,979 83,065 28,323 95,290 30,000 40,000 99,007 40,000 160,269 Amount University Item 11.a Annual Report 2018.pdf - Page 86 of 102 - - 3,717 1,247 2018 3,180 3,816 3,344 £000 9,045 19,916 10,000 24,979 83,065 28,323 95,290 30,000 40,000 99,007 40,000 160,269 Consolidated
Creditors: amounts falling due after more than a year than more due after falling amounts Creditors:
Loans obligations lease Finance Deferred income Deferred b. Finance lease net obligations committed: net obligations lease b. Finance than one year Less years one and two Between years one and two Between a. Loans are repayable: a. Loans are than one year Less years two one and Between years and five two Between or more years In five years and five two Between or more years In five income c. Deferred than one year Less years and five two Between Bank Plc Barclays Included in loans are the following: are Included in loans Lender In five years or more years In five bodies. government from received grants capital to relates income Deferred Bank Plc Barclays Bank Plc Barclays Bank Plc Barclays 20. Repayments are due in four payments of £10.0m, in September 2021, 2026, 2031 and 2036 respectively. respectively. and 2036 2031 2026, 2021, of £10.0m, in September payments due in four are Repayments
NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 UoAUoA NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 87 - 330 1,130 1,129 1,190 1,309 £000 (500) 2,560 Total 4,376 £000 (2,500) (5,797) 41,674 54,082 (13,255) Provisions Total Pension Pension Total Overall Page 154 of 323 ------60 60 (500) £000 3,900 3,400 £000 Waste Pensions Enhanced Enhanced Disposal - - 330 620 - 4,376 £000 10,750 22,687 (4,008) (13,255) Benefit 440 440 Defined £000 2,500 (2,500) Obligations Student Item 11.a Annual Report 2018.pdf - Page 87 of 102 Accommodation - - - - 509 1,309 - - - £000 (1,789) 27,495 27,524 690 690 £000 USS Deficit USS Obligations Campus International
Provisions for liabilities for Provisions Creditors: amounts falling due after more than a year - continued a year than more due after falling amounts Creditors:
At 31 July 2018 At 31 July Released in year Released Charged in year Charged in year Utilised Consolidated and University Consolidated At 1 August 2017 b. Other provisions a. Pension provisions a. Pension Consolidated and University Consolidated At 1 August 2017 costs staff to Charged in year Movements expenses Administrative contributions in expected Changes 2018 At 31 July Employer contributions paid contributions Employer gain Actuarial
Interest payable Interest 21. Further information regarding the USS pension scheme and defined benefit obligation schemes is available in note 27. note in available schemes is and defined benefit obligation pension scheme the USS regarding information Further is This liability pension has been provided. whom an enhanced and for retired who have employees of former in respect has an obligation The University period. the retirement throughout 27) note and continues (see valuation independent actuarial by assessed The University is in discussion with our South Korean partners regarding the ongoing viability of opening the campus in South Korea. As a result As a result South Korea. in of opening the campus viability the ongoing regarding partners with our South Korean is in discussion The University costs of the pre-establishment Repayment our partners. to costs of pre-establishment the repayment for £0.7m for has provided the University further require would settlement any alternative the partners, between agreement but is subject to outcome likely be the most to is considered at this time. be quantified and cannot discussion contracts. student accommodation external to in relation £0.4m for provided has also The University Sources” of “High Activity Sealed removal the for provide to regulations Agency Protection Environment under Scottish has an obligation The University 10-15 years. within the next will be removed sources these that Building. It is expected Sciences of Medical within the Institute held within one year. or reversed be used to expected are provisions other above, Other than disclosed
Leases is £2.1m a period of 25 years. over of residence halls of two in respect Ltd, with British Linen Leasing arrangement a leasing into has entered The University 2018. in October which expired agreement under this than one year in less payable Court of Halls Carnegie respect of the New in Ltd, with Prudential arrangement leasing finance a 25 year into entered 2012 the University In December in 2037. expires which under this agreement payable £26.2m is Residence. 20. 131 84 796 1,572 2017 5,192 1,857 11,415 (665) 4,552 3,630 £000 £000 5,407 6,526 41,314 4,269 4,489 36,122 30,911 Total 40,391 16,309 26,359 45,798 45,798 45,798 University Overall Page 155 of 323 62 358 2018 1,057 12,191 1,684 (699) 2,335 5,493 17,129 4,787 4,329 £000 £000 5,407 3,904 Total 6,849 2,009 27,021 40,391 31,350 45,798 43,060 48,553 48,553 48,553 Consolidated - 9 16 151 99 316 165 180 (53) (62) 279 279 £000 Restricted Expendable Item 11.a Annual Report 2018.pdf - Page 88 of 102 62 411 662 (251) 1,499 £000 5,394 5,256 29,173 25,751 31,145 23,917 31,145 Restricted Restricted Permanent - - - - 386 820 (386) 17,129 £000 17,129 17,129 16,309 16,309 Permanent Unrestricted Unrestricted
Endowment reserves Endowment Cash and cash equivalents Cash and cash
Consolidated and University Consolidated Balance at 1 August 2017 1 at Balance Capital Accumulated income Accumulated New endowments New Investment income Investment Expenditure Net expenditure Increase in market value of investments value in market Increase At 31 July 2018 At 31 July Represented by: Represented Capital Accumulated income Accumulated At 31 July 2018 At 31 July Scholarships foundations Teaching Cash flows Analysis by purpose by Analysis Bursaries Prizes purposes Other restricted At 1 August 2017 Unrestricted gains unrealised Unallocated
22. 23.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 UoAUoA NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 8989 - - - - 5 2 2 - - 12 7 19 31 6 57 69 (2) 89 24 (6) 491 925 1,181 238 619 1,535 2017 (612) £000 2017 2017 £000 2,335 £000 2,494 Total 4,829 Payments Overall Page 156 of 323 1 1 - 7 (7) - - - - - 2 5 4 4 5 4 597 18 70 85 2018 2018 (9) 85 (597) 89 2,601 172 7,785 471 £000 Total 10,386 2018 3,748 £000 £000 Receipts - - - - 89 (43) (46) Funds Postgraduate Postgraduate Item 11.a Annual Report 2018.pdf - Page 89 of 102 1 1 7 63 (7) Nature of Nature Transaction Operations Operations/Grants Operations/Grants Operations/Grants Operations Operations/Grants Operations/Grants Operations/Grants Operations Operations Operations/Grants Operations Operations Operations/Grants 356 (419) Funds Undergraduate Undergraduate - - - - 152 (20) Relationship Charity Joint venture Charity Customer Government Body Government Charity Charity Charity Customer Supplier Customer/Supplier Charity Supplier Charity (132) Childcare Funds Childcare
Amounts disbursed as agent Amounts disbursed Disclosure of related party transactions of related Disclosure Capital committments Capital
Consolidated and University Consolidated for contracted Commitments for contracted but not Authorised and University Consolidated At 1 August 2017 Repaid as claw back Repaid as claw Allocation received in year received Allocation Interest earned Interest Expenditure Transfer At 31 July 2018 At 31 July Organisation Aberdeen Arts Centre Aberdeen Aberdeen Sports Village Limited Sports Village Aberdeen Aberdeen University Students Association University Aberdeen British Academy British Council British Heart Foundation British Heart Carnegie Trust Cruickshank Botanical Gardens Trust Gardens Cruickshank Botanical Aberdeen Sports Village Limited Sports Village Aberdeen Aberdeen University Students Association University Aberdeen Foundation British Heart Outstanding balances owed from/(to) the above related parties at 31 July 2018 were as follows: 2018 were 31 July parties at related the above from/(to) owed balances Outstanding Cruickshank Botanical Gardens Trust Gardens Cruickshank Botanical Nursery Rocking Horse Trust Development of Aberdeen University HSBC plc Law Society of Scotland Services Limited Services Society of Scotland Law Rocking Horse Nursery Rocking Horse Scottish Education Research Association Research Education Scottish UCAS
University of Aberdeen Development Trust Development of Aberdeen University 25. Due to the nature of the Group and University’s operations and the composition of the University Court being drawn from local public and private public and private local from being drawn Court of the University and the composition operations and University’s of the Group the nature Due to All interest. an have may Court in which a member of University with organisations place will take transactions that it is inevitable organisations, sector and in accordance length arm’s at conducted are an interest have may Court in which a member of the University organisations involving transactions procedures. procurement and normal regulations financial with the University’s for the disclosure: identified were transactions The following
26. 24. 72 65 160 25.5 25.8 2017 2,184 £000 15,107 17,588 female Mortality Rate Future pensioners Future Overall Page 157 of 323 45 191 103 2018 £000 2,608 15,093 23.4 22.6 18,040 male Mortality Rate 5 17 Future pensioners Future 26 642 1,893 Active 23.7 23.7 Members Current Current Mortality Rate Item 11.a Annual Report 2018.pdf - Page 90 of 102 8.0% pensioners female 7.05% Variable Variable Variable Employee Employee 21.2 21.4 Current Current Contribution Rate Contribution Mortality Rate pensioners male 1 2 As at 31 July 2018 31 July As at 17.2% 35.1% 14.3% 24.2% 18.0% 3.4% 2.4% 2.4% Rate CARE CARE Employer Pension Pension Increase Final Final Salary Contribution Rate Contribution 3.4% 3.6% Salary Salary Increase Rate Increase 2.7% 2.9% Rate Discount Discount
Pension schemes Pension
Scheme participation and pension costs Scheme participation Pension Scheme Pension UASLAS STSS SPF NHSSS USS The USS employer contribution rate includes a 2.1% contribution in respect of the deficit recovery plan. recovery of the deficit in respect contribution includes a 2.1% rate contribution employer The USS UASLAS SPF Key actuarial assumptions, if appropriate assumptions, actuarial Key Pension Scheme The UASLAS employer contribution rate includes a 5.8% contribution towards the elimination of the funding shortfall. The employer contribution rate rate contribution The employer of the funding shortfall. the elimination towards contribution includes a 5.8% rate contribution The UASLAS employer 2 1 27. increased from 17.5% to 24.2% following the conclusion of the 2016 valuation exercise. A member consultation exercise was undertaken in the summer undertaken was exercise A member consultation exercise. of the 2016 valuation the conclusion following 24.2% to 17.5% from increased 1 January 2019. 8%) from employee 18.3%, (employer rates contribution revised in benefits and in a reduction of 2018 and has a resulted In calculating USS pension provision at 31 July 2018, the University used the discount rate (2.14%) provided by the British Universities Finance Directors Directors Finance the British Universities by provided (2.14%) rate the discount used 2018, the University 31 July at pension provision USS In calculating 4% thereafter. and years five for 5% of rate increase salaries (BUFDG) and a future Group Minimum Pension Guaranteed schemes. The defined benefit pension Banking Group’s the Lloyds a judgment involving handed down in England 2018, the High Court On 26 October accrued from amounts women arising for men and in pension benefits differences equalise be amended to should such schemes judgment concluded defined benefit many other to in relation the judgment arise by determined The issues 1990 and 1997. between Minimum Pension under the Guaranteed which the judgment to the extent understand of the UASLAS to with the trustees and SPF schemes work to has started The University pension schemes. not schemes is liabilities in these the to which the judgment will increase extent liabilities. The defined benefit pension additional to rise give may included provision USS, the the including principally scheme, defined benefit other the University’s For of this report. the date at estimate to possible the future to the judgment increase in benefits due changes extent to the in the future, be impacted also 21 may in note statements within the financial contributions. deficit of employer level The principal schemes for the University’s staff are the Universities’ Superannuation Scheme (USS) and the University of Aberdeen Superannuation & Life & Life Superannuation of Aberdeen and the University (USS) Scheme Superannuation the Universities’ are staff University’s the for schemes The principal benefit defined The UASLAS (SPF). are and SPF schemes Fund Pension the Strathclyde to contributes also Scheme (UASLAS). The University Assurance Each funded. externally are schemes three elements. All contribution and defined of defined benefit has a combination scheme whilst the USS schemes, schemes. other pension remain in actuaries. number of staff A small independent qualified professionally by years three every fund is valued
NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 UoAUoA NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 91 24.4 26.5 29.0 26.6 77% 2017 2017 2017 2.41% 2.57% £17.5bn £77.5bn £60.0bn Overall Page 158 of 323 27.8 24.5 26.5 26.0 88% 2018 2018 2018 2.02% 2.64% £8.4bn £72.0bn £63.6bn 98% of SAPS S1NA “light” YOB unadjusted for for unadjusted S1NA “light” YOB of SAPS 98% males. with a -1 year S1NA “light” YOB of SAPS 99% females. for adjustment p.a. of 1.5% rate term CMI_2014 with a long 2.41% 2017 Item 11.a Annual Report 2018.pdf - Page 91 of 102 CMI_2016 with a smoothing parameter of 8.5 and a parameter CMI_2016 with a smoothing and males p.a. for of 1.8% rate improvement term long females p.a. for 1.6% Pre-retirement: and 112% of males 0) for 71% of AMC00 (duration females 0) for AFC00 (duration retirement: Post of and 101.3% males S1NMA “light” for of SAPS 96.5% females RFV00 for 2018
Pension schemes - continued schemes Pension
Future improvements to mortality to improvements Future Mortality base table Mortality base Males currently aged 65 (years) aged currently Males 65 (years) aged currently Females 45 (years) aged currently Males 45 (years) aged currently Females Scheme assets The current life expectancies on retirement at age 65 are: age at on retirement expectancies life The current Total scheme liabilities scheme Total Total scheme deficit scheme Total funding level Total Discount Rate Discount Pensions increases (CPI) increases Pensions The Universities Superannuation Scheme (USS) Superannuation The Universities all (for defined benefits providing scheme, is a hybrid pension The scheme Scheme. Superannuation in the Universities participates The University of the mutual fund. Because trustee-administered separate in a are held scheme of the assets The contribution benefits. as defined as well members), is set. The institution is therefore rate contribution and a scheme-wide institutions individual to attributed not are the assets of the scheme, nature of and liabilities assets of the underlying identify its share to and is unable employees institutions’ with other risks associated actuarial to exposed for the accounts the institution therefore benefits”, “Employee Section 28 of FRS 102 by basis. As required and reasonable on a consistent the scheme contributions the represents account loss and to the profit amount charged result, the As a scheme. contribution defined a wholly if it were as scheme scheme within the employer each how determines that Plan) (the Recovery agreement an into the institution has entered Since the scheme. to payable they that extent the (to agreement the from arise that payable contributions for the a liability recognises deficit, the institution will the overall fund recognised. is expense an the deficit) and therefore to relate of entities under common of a collection consists plan A group scheme. and a multi-employer plan a group the distinction between makes FRS 102 (typically) represents and control under common entities not for is a scheme scheme A multi-employer employer. a sponsoring with typically control has entered the employer where scheme a multi-employer for The accounting Scheme. Superannuation such as Universities an industry-wide scheme contributions for the of a liability recognition results in the will fund a deficit employer the how determines that with the scheme an agreement into with accordance in loss or in profit expense resulting the deficit) and the to relate they that the extent (to the agreement from arise that payable multi-employer Scheme meets the definition of a Superannuation Universities by the scheme provided the that is satisfied Court section 28 of FRS 102. of the date at in existence under the funding plan contributions of the contractual value fair the discounted recognised has therefore and scheme statements. the financial approving which date), 2014 (the valuation 31 March section of the Scheme is at Builder Income of the Retirement valuation actuarial complete available The latest completed. yet but not 2017 is underway 31 March as at unit method. The valuation out using the projected carried was reflect disclosures the following and liabilities, Section of the Scheme assets Builder Income of Retirement identify its share the institution cannot Since as a whole. section the for relevant those requires Pensions Act 2004, which by the regime introduced funding under the scheme-specific USS for valuation the third was The 2014 valuation valuation At the provisions. technical their cover to assets sufficient and appropriate have which is to objective, funding a statutory adopt to schemes of a shortfall billion indicating £46.9 was provisions technical of the Scheme’s £41.6 billion and the value of the Scheme was of the assets the value date, complete. is Valuation the 2017 Scheme once revised will be figures £5.3 billion. These 2017 and 2018. at 31 March as assumptions following using the produced been have purposes accounting for for the Scheme liability numbers Defined benefit
The main demographic assumption used relates to the mortality assumptions. These assumptions have been updated for the 31 March 2018 accounting 2018 accounting the 31 March for been updated have assumptions These the mortality assumptions. to relates used assumption The main demographic in used The mortality assumptions valuation. out as part actuarial of the 2017 carried experience Scheme’s of the analysis on updated based position, follows: as are figures these 27. Overall Page 159 of 323 Item 11.a Annual Report 2018.pdf - Page 92 of 102
Pension schemes - continued schemes Pension The impact of a 1% increase to the employer deficit recovery rate to 3.1% results in a provision value of £39.9m (this would require a provision a provision require would (this of £39.9m value results in a provision to 3.1% rate recovery deficit the employer to of a 1% increase The impact of £12.4m). statement and expenditure the income to and charge increase a provision require would (this of £73.3m value results in a provision to 6.0% rate recovery deficit the employer to increase of a 3.9% The impact of £45.8m). statement and expenditure the income to and charge increase 27. The Universities Superannuation Scheme (USS) Superannuation The Universities within fund past deficits arising to obligation its for a provision recognises currently the University the SORP, of with the requirements In accordance of salaries 2.1% contribute to employers requires valuation in the 2014 actuarial plan The recovery (USS). Scheme Superannuation the Universities as of 2.14% rate at a which has been discounted of this provision, remain. Details years of which 14 years, a period of 17 over deficit the repairing towards statements. the financial to 21a included in note 2018, are 31 July at but undertaken has been of USS valuation The 2017 actuarial employer. is a participating the University in which scheme is a multi-employer The USS significantly increase to 2017 is estimated 31 March at scheme multi-employer the whole for pension liability The total completed. been formally has not combined employer of benefits the level current the Scheme’s maintain to in order that concluded has therefore Trustee and the USS £7.5bn to in its report and delivered (JEP) A Joint Expert the valuation Panel assess to has been established increase. needs to rate contribution and employee levels. contribution to benefits and/or changes propose to is likely Trustee the to due diligence, and subject findings, on the JEP’s 2018. Based September the key around of consultation stages various remains and there completed, formally is not as the 2017 valuation In the judgment of the University, plan and recovery the period of the required, contributions of deficit level the past deficit, including the to the funding of relating specifically factors accordance in the past deficit obligation for account to continue 2018 to 31 July at appropriate the period, it remains over performance of asset the level the 31 July that risk is a significant there However, of 2.1%. rate a deficit funding applying valuation, the 2014 actuarial after agreed with the funding plan amount very significant by a potentially of negotiations, outcome the final following the position reflect will not as calculated provision 2018 year-end respect in this clarity greater to have expects The University contributions and their duration. deficit future as regards is agreed depending upon what year. financial during the next million, which is of £27.5 liability 2018 provision 31 July on the University’s impact the potential outlines analysis sensitivity indicative The following of 2.14%: rate discount an unchanged sensitivity assumes The of 2.1%. rate using the 2014 deficit funding calculated • Scheme (UASLAS) Assurance and Life Superannuation of Aberdeen The University scheme in the benefit pension Scheme is a funded defined set up on UK. The Scheme is Assurance Life and Superannuation of Aberdeen The University the ensuring that for responsible are The Trustees Trustees. by and is supervised trust independent of the University basis as a separate relieved a tax invested. appropriately are Scheme assets funded and that the Scheme is appropriately paid, that benefits are correct as of the cost the balance pays and the University salary of pensionable of 7.05% the rate at contributions of the Scheme pay members Active of the Scheme for and costs the liabilities value to prudent assumptions use to required are The Trustees valuations. actuarial regular by determined salaries pensionable members’ of active 5.8% contributes The University must be best estimates. assumptions the accounting whereas funding purposes expenses. administration benefits and service of future paid in respect contributions to This is in addition the funding shortfall. eliminate to 1 January 2018. A from 24.2% to 6.7% by increasing contributions in employer 2016 and resulted 31 July out as at carried was valuation actuarial A formal (employer rates contribution to in benefits and changes in a reduction has resulted summer 2018 that throughout undertaken was member consultation 1 January 2019. from 8%) employee 18.3%, University an independent chairman and three including Trustees appoints four Court Court. in the University is vested appoint Trustees to The power for The arrangements of the scheme. and pensioner members the active by elected are members, who represent Trustees, A further two employees. Act 2004. of the Pensions requirements Trustee Nominated with the Membership comply representatives appointing membership the Decisions require be taken. decisions to valid for must be present which a minimum of two at meetings Trustee attend • and outcome as a possible the USS from communications in to 6.0% has been indicated 2.1% from of 3.9%, increase rate recovery deficit An employer to be expected contributions is deficit revised of and notification valuation The actuarial above. calculation is included in the sensitivity therefore for this statements in the financial recognised to be expected is required, as provision, revised 2019 and the ending 31 July year in the financial finalised year.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 UoAUoA NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 93 120 690 4,131 1,170 3,331 2017 2017 2,417 1,899 £000 £000 12,560 36,533 12,256 91,660 17,262 149,505 Fund Value Fund Fund Value Fund Overall Page 160 of 323 556 4,151 2018 1,056 11,168 2018 2,041 £000 13,814 £000 11,874 4,082 16,947 18,553 68,043 40,958 156,137 Fund Value Fund Fund Value Fund Item 11.a Annual Report 2018.pdf - Page 93 of 102
Pension schemes - continued schemes Pension
Equities Cash Equities Property bonds linked Index pensions Secure Bonds Property Scheme Assets Government bonds Government bonds Corporate Cash Scheme Assets The Scottish Teachers Superannuation Scheme (STSS) Superannuation Teachers The Scottish governed Exchequer under arrangements to the credited are basis Contributions on a “pay-as-you-go” scheme. is an unfunded defined benefit The STSS rates. contribution of determining the purposes for scheme the to is ascribed value assets A notional Act 1972. the Superannuation by of the to identify its share is unable of Aberdeen scheme. The University pension is a multi-employer STSS the set out in FRS102, Under the definitions its for and has accounted in FRS102 of the exemption advantage has taken the University Accordingly, of the scheme. and liabilities assets underlying years. five every Actuary by the Government report to a scheme is subject scheme. The contribution a defined as if it were contribution (NHSSS) Scheme Superannuation Service Health The National cost for the only responsible it is on the basis that scheme has operated the scheme. Historically defined benefit pension is a multi-employer NHSSS 1 April from However, by the Exchequer. being met of pension increases cost and their dependents, with the to members of the basic benefits payable a as if it were for accounted is also This scheme rate. contribution in the employers’ an increase has been met by of pension increases 2004, the cost scheme. contribution defined At 31 July 2018, the defined benefit surplus of the scheme were £0.7m (2017: deficit of £1.9m). The University has not recognised the surplus in its balance balance the surplus in its recognised not has £1.9m). The University deficit of (2017: £0.7m were scheme 2018, the defined benefit surplus of the At 31 July sheet. At 31 July 2018, the defined benefit deficit of the scheme was £10.8m (2017: £20.8m). was £10.8m (2017: scheme deficit of the 2018, the defined benefit At 31 July to properties various investment over security provided University a deficit of £9m on the Scheme the reported that 2016 valuation the 31 July Following which is unaffordable by 6.7% contributions increased employer addition, future period. In year a 10 over it repay to agreed the deficit and underwrite the the consultation, during the summer of 2018. Following join the Scheme to eligible and those with members held was consultation a and as a result contributions will and employee to 18.3% reduce contributions will from 1 January 2019 employer however scheme, a defined benefit Scheme remains rate. accrual lower at a earned pension benefits with future 8% to increase
The Strathclyde Pension Fund (SPF) Fund Pension The Strathclyde other some and government local of for employees salary pensionable on a final benefits based (SPF) provides Fund Pension The Strathclyde the to contributions and hence of the scheme and liabilities assets underlying of the share institution’s identify each to institutions. It is possible scheme. a defined benefit were as if they for accounted are scheme is 35.1%. salaries pensionable on members’ payable rate contribution The employer’s 2017. 31 March at was undertaken valuation triennial The last In of valuation. method a prescribed to according calculated or liability a net pension asset produce is designed to FRS102 standard The accounting the alia, inter to determine, valuations actuarial in normal used that from differs liabilities pension scheme applied to rate the discount particular, of an advice with the determined are The pension costs liabilities. scheme for a higher value produce and generally funding rate, required scheme’s method. unit using the projected valuation actuary triennial on the basis of independent qualified 27. 12 35 110 153 310 2017 2017 2.7% 2.4% 2017 £000 £000 3,900 Overall Page 161 of 323 2.4% 2.9% 2018 9 35 138 106 288 2018 2018 £000 £000 3,400
Item 11.a Annual Report 2018.pdf - Page 94 of 102 Support staff Academic staff Academic staff Academic Support staff
Pension schemes - continued schemes Pension
Pension increases are in line with statutory increases (currently CPI inflation); (currently increases in line with statutory are increases Pension of death; date pensions at 50% of members’ pensions are Spouses’ 5 April 1988 after pensions commenced whose of females in respect payable pensions are Widowers’ Pension Increases Pension Discount Rate Discount Liability on this basis at 31 July on this basis at Liability Results Total
Old Scheme Old Scheme New 27. In order to maintain consistency with the approach adopted for previous years, all other assumptions, including demographic assumptions adopted are are adopted assumptions including demographic assumptions, other all years, previous for adopted with the approach consistency maintain to In order Scheme (UASLAS). Assurance and Life Superannuation of Aberdeen the University for used those follows: as are of a pension on 31 July in receipt of education of the Northern College employees former for statistics Membership Additional Pension Payments Pension Additional a number of former to pensions of enhanced payment the for is responsible in 2001 the University Northern with College merger the Following 1 December as at out carried was of the liability valuation An actuarial retirement. early granted been of whom have most of the College, employees into incorporated was which of £4,596,000, liability a revealed valuation This and Northern College. the University between of the merger 2001, the date merger. at of the University the accounts as follows: 2018 31 July at undertaken has been valuation An actuarial Benefits to be valued to be Benefits terms: following the subject to of Education of the Northern College employees former paid to The pensions are • • •
NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 UoAUoA NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 95 93 951 330 (951) 4,123 4,123 2017 (330) 3,414 £000 2,642 4,530 (4,123) 5,404 18,422 15,780 (6,516) (39,119) 18,422 (2,642) 189,867 166,768 189,455 (189,455) (22,687) (22,687) Overall Page 162 of 323 94 330 620 (330) 2018 (620) 7,647 4,376 4,376 £000 5,077 5,326 5,608 4,008 13,255 13,255 (4,376) (7,647) (5,906) 189,455 174,699 (22,687) (10,750) (10,750) 185,449 (185,449) Item 11.a Annual Report 2018.pdf - Page 95 of 102
Pension schemes - continued schemes Pension
Analysis of amounts recognised in surplus/(deficit) for the year for the in surplus/(deficit) of amounts recognised Analysis cost service Employer costs Administrative cost Net interest Analysis of other comprehensive income comprehensive of other Analysis gains Actuarial amounts in net interest excluding Return on assets sheet: in the balance of amount shown Analysis liabilities of scheme value Actuarial Fair value of assets value Fair year at end of liability Defined benefit sheet: the balance to Reconciliation year previous at end of liability Defined benefit Current service cost service Current charge Net interest costs Administrative contributions Employer Actuarial gain Actuarial year at end of liability Defined benefit liabilities: of scheme value in actuarial Change end prior year at Scheme liabilities cost service Employer cost Interest Scheme participants contributions (gain) Actuarial
Benefits paid from scheme assets Benefits paid from end year current at Scheme liabilities 27. – Defined Benefit Schemes disclosures Combined statements. the financial in been recognised of UASLAS and SPF and have respect in measured were amounts The following 93 342 505 900 2017 2017 (330) 3,414 2014 1,242 3,579 £000 £000 £000 15,780 (6,516) 150,748 124,469 (151,674) 166,768 (27,205) Overall Page 163 of 323 94 301 546 486 847 2015 (330) 2018 2018 4,457 £000 £000 £000 5,608 4,008 135,291 (5,906) 166,768 174,699 (165,124) (29,833) 2016 £000 150,748 (39,119) (189,867) Item 11.a Annual Report 2018.pdf - Page 96 of 102 2017 £000 166,768 (189,455) (22,687) Principal Activity Principal company research Charitable Dormant Dormant Dormant 2018 £000 174,699 (10,750) (185,449)
Subsidiary undertakings Subsidiary Lease obligations Lease Pension schemes - continued schemes Pension
Later than one year and not later than five years than five later and not than one year Later Deficit in the schemes: Deficit in the liabilities of scheme value Actuarial of assets value Fair scheme Deficit in the during the year Payable due: payments minimum lease Future than one year later Not Total rentals payable under operating leases: under operating payable rentals Total Fair value on assets at current year end year current at on assets value Fair and liabilities: assets of history Five-year Scheme participants contributions assets scheme Benefits paid from Change in scheme assets: in scheme Change end prior year at of assets value Fair expenses Administrative income Interest on assets gain Actuarial contributions Employer Company
Rowett Research Institute Limited Institute Research Rowett Limited Services & Innovation Research University Aberdeen Limited Centre Conference College King’s Limited Press University Aberdeen 29. The subsidiary companies, all of which are registered in Scotland, and are wholly owned by the University are as follows; are the University by owned wholly and are in Scotland, registered of which are all companies, The subsidiary
28. 27.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 UoAUoA NOTES TO THE FINANCIAL STATEMENTS CONTINUED - YEAR ENDED 31 JULY 2018 97 2017 1,385 £000 30,117 19,261 59,377 48,382 40,096 University Overall Page 164 of 323 2017 1,385 £000 30,117 19,208 59,395 48,382 40,096 Consolidated - 2018 £000 18,138 61,633 28,323 50,744 40,000 University - 2018 £000 21,213 61,656 28,323 50,744 40,000 Item 11.a Annual Report 2018.pdf - Page 97 of 102 Consolidated
Financial instruments Financial
Assets measured at fair value through income or expenditure income through value fair at measured Assets 14) (note assets - Amounts included in non-current - Current asset investments (note 18) (note investments asset - Current obligations lease - Finance Assets measured at cost less impairment (note 17) impairment (note less cost at measured Assets 19) (note cost amortised at measured loans) (excluding Liabilities Loan commitments measured at amortised cost (note 20) (note amortised cost at measured Loan commitments - Loans The fair value of financial assets at fair value through income or expenditure, is determined by reference to their quoted bid price at the balance sheet date. at the balance bid price to their quoted reference by is determined expenditure, or income through value fair at assets of financial value The fair risk Credit credit The University’s to the University. loss in a financial resulting obligations on its contractual will default a counterparty the risk that to risk refers Credit of risk is a prime objective of credit Management customers. as organisations and commercial student debtors investments, bank balances, from risk arises sheet. in the balance asset financial of each value the carrying by is represented 2018, the maximum exposure At 31 July Policy. Management the Treasury by assigned ratings grade banks with investment are counterparties the because instruments is limited risk of liquid funds and financial The credit is exposure The credit regularly. monitored are of its counterparties ratings and the credit exposure The University’s agencies. credit-rating international Policy. Management the Treasury within set ratings party credit party limits and minimum counter counter by limited is deemed If a debtor uncertain. becomes if recovery is made debt provision basis and a bad on an on-going reviewed are debtors Student and commercial customer commercial student and both across customers number of diverse large to a due of risk is limited concentration The off. it is written irrecoverable populations. Liquidity risk of liquidity risk is an monitoring due. Regular fall as they obligations meet its financial to be able will not the University the risk that to Liquidity risk refers during the financial revised and are process planning form part of the University forecasts Cash flow activities. management of treasury feature essential and operating payroll core one month’s to equivalent balance cash an average maintain is to policy The University as required. made with re-forecasts year limits. Policy Management the Treasury whilst observing the return maximise to invested funds are Excess costs. risk. as accommodation respect of student in leases and finance facility loan Bank by the Barclays secured has been financing of the University The long-term 20. in note detailed risk currency Foreign re-investment principal The University’s to the University. loss financial cause may rates in exchange movement unfavourable the risk that to risk refers currency Foreign liabilities any forecast for accounting basis and after on a monthly is reviewed holding of euros level The operating the euro. is to exposure currency foreign rates. spot at limited sterling into converted are this level above any surplus euros risk rate Interest have or changes risk) (i.e. price sheet items of balance value of the in fluctuations will result rates in interest changes that the likelihood to risk refers rate Interest rate interest low to the term. Due the over is fixed facility the loan to attached rate The interest risk). (i.e. re-investments or expenses income in interest Such liquidity. return whilst offering of rates competitive a offer as these on-call 2018 are the 31st July at deposits cash of the University most environment deposits values instruments – fair Financial sheet. in the balance value carrying the same as their instruments are financial of the University’s category of each values The fair
Risk management currency and foreign interest liquidity, the credit, managing for function which is responsible management treasury a centralised operates The University policy management treasury The policy. management treasury approved by the specified within the parameters managed risks are risk. financial These of Public Institute the Chartered by as issued in Public Service Management on Treasury of Practice of the Code recommendations key the adopts annually. and approved updated and is reviewed, (CIPFA) and Accountancy Finance to instruments is financial of these objective core The leases. and finance loans cash, investments, instruments are financial principal The University’s liabilities and assets other financial has the University Additionally, investment. capital and operations of the University’s meet the financing needs and creditors. debtors i.e. trade its operations from arising directly 30. Overall Page 165 of 323 Item 11.a Annual Report 2018.pdf - Page 98 of 102 37 Albyn Place Albyn KPMG LLP 1JB Street 37 Aberdeen AB10 Bothwell PricewaterhouseCoopers LLP 7EQ 141 Glasgow G2 39 Albyn Place Albyn Bank of Scotland 1YN 39 Aberdeen House AB10 LLP and Wedderburn Shepherd 1XE Street Commercial Aberdeen Terrace 2 Rubislaw AB10 George LLP Ernst & Young 2DZ 10 Edinburgh EH2
– Internal Auditor Bankers – External Auditor
Advisors Legal Advisors Taxation PRINCIPAL PRINCIPAL
UoA GLOSSARY 99 Overall Page 166 of 323 Item 11.a Annual Report 2018.pdf - Page 99 of 102 The AFGrica Unit in South Africa, in conjunction with the in conjunction Unit in South Africa, The AFGrica international first is the world’s (UCT), of Cape Town University infections fungal tackling for centre research Sports Village Aberdeen advancing to commitment and recognise encourage to Charter engineering, technology, in science, of women the careers in higher education employment and medicine (STEMM) maths and research on the advice provides that of Court A committee for audit, financial procedures of the University’s effectiveness and provides and risk management, governance control, the to report annual its through areas key in these assurances Court by which is approved Council, Funding Scottish Council Research Sciences and Biological Biotechnology – The CMI provides Mortality Investigation Continuous rate and independent mortality and sickness authoritative and pension funds insurers UK life for tables (CPD) is the intentional development professional Continuing and skills of the knowledge and development maintenance mean This could context. in a professional perform needed to a new them to developing mean skills, it could honing current an will allow ones that new learning mean or it could level, potential them for or prepare expand to job role employee’s promotion (DLHE) Higher Education from of Leavers The Destinations discovering aimed at graduates recent of survey is an annual six months after do approximately on to gone have they what graduating of Scotland in the northeast spoken language Scots Council Research Sciences Engineering and Physical Council Research and Social Economic of accounting set – single Reporting Standard Financial (FRC) Reporting Council the Financial by developed standards UK GAAP has replaced that has been designed programme (G2M) Our Gateway2Medicine school and ambitions of secondary the aspirations transform to and in Scotland, background a widening access pupils from is school medical to application that considered have who may In our unique and out of their reach. ambitious, unrealistic too our (NESCOL), College with North East Scotland partnership and supportive accessible a novel, will provide G2M course them to will allow that applicants, these medicine for into route doctors and become their full potential reach Gateway2Medicine FRS102 ESRC EPSRC Doric DLHE Survey Continuing Professional Development (CPD) Development Professional Continuing CMI Pension Mortality projections CMI Pension BBSRC Audit Committee Athena SWAN Athena SWAN ASV AFGrica Unit AFGrica Overall Page 167 of 323 Item 11.a Annual Report 2018.pdf - Page 100 of 102 Established by the Universities (Scotland) Act 1858 and consists of Act 1858 and consists (Scotland) the Universities by Established staff academic and certain graduates and of governance on matters advise to of Court A committee its behalf on governance of the University’s reviews conduct research economics Unit – a health Research Economics Health inform to work and methodological applied delivers that centre policy public health research to remit Unit – with a national Research Sciences Health in health capacity build and to care health provide to the best ways within Scotland research services demonstrates that value – a measurable Indicators Performance Key objectives key achieving is an organisation effectively how 150 to 13,000 people over welcomed that event organised University events Council Research Medical mainly opinions, from gathers (NSS) Student Survey The National time in higher education. about their undergraduates, final-year higher about of public information sources It is an influential help to voice collective students a powerful and gives education and current and their institution for their course of shape the future students prospective Council Research Environment Natural Scheme (UK) Superannuation Service Health National the north around route scenic 500 is a 516-mile The North Coast The route Castle. Inverness starting and ending at of Scotland, coast in 2015, linking many launched as the NC500 and was known is also touring in one iconic of Scotland in the north Highlands features route estate financial, academic, integrate to of Court A committee making, Court and policy advising planning and human resources the oversee and to objectives; strategic on long-term and Senate of the University performance operational regulator – independent Scottish Charity Regulator of the Office charities of Scottish and registrar pension USS for used of Birth mortality tables Year Standard pensioners Health on Normal based are Tables scheme. Initial Learning - Distance in Education Diploma Graduate Post Programme Education Teacher Quacquarelli by rankings of university publication An annual Symonds incentive – a UK tax Credit Expenditure and Development Research and in research invest to organisations large encourage designed to development RDEC QS World University Rankings University World QS PGDE DLITE Pension Mortality Tables - S1NA [“light”] YoB - Mortality Tables Pension OSCR Operating Board Operating North Coast 500 North Coast NHSSS NERC National Student Survey National MRC May Festival May KPIs HSRU HERU Governance and Nominations Committee and Nominations Governance General Council General
GLOSSARY UoA GLOSSARY 101 Overall Page 168 of 323 Item 11.a Annual Report 2018.pdf - Page 101 of 102 A committee of Court to advise on matters relating to the pay and the pay to relating on matters advise to of Court A committee staff of senior conditions education in UK higher of research the quality assessing for System institutions and Sciences and Environmental Rural Government’s Scottish Division Services Analytical in risk management standards recognised globally to Conforms best practice accepted and widely the SFC between relationship accountability Sets out the formal with which institutions are and institutions, and the requirements SFC by of grant of payment in return comply to expected of which includes a goal within its membership, Court by Adopted of a minimum of representation female and maintaining achieving term the longer 50% over achieve to with aspirations 25%, of teaching and superintendence the regulation for Responsible of research the promotion and for (SIMD) identifies small Deprivation of Multiple Index The Scottish of Scotland all across deprivation of multiple concentrations area of policies and targeting effective It allows way. in a consistent account or take tackle or partly wholly aim is to the funding where to refers SIMD20 deprivation. of multiple concentrations of area in Scotland. zones data deprived the 20% most Fund Pension Strathclyde period year the five priorities for Outlines the University’s Scheme Superannuation Teachers’ Scottish Times Higher by rankings of university publication An annual (THE) magazine Education Scheme Assurance & Life Superannuation of Aberdeen University (UCEA) Administration Educational for Council The University to institutions committed of higher education is a consortium for leaders of educational and practice the preparation advancing schools and children. the benefit of Principles Accounting Accepted UK Generally is charged that of the University body governing The executive and of the revenue and management with the administration of the University property Scheme Superannuation Universities’ Initial Learning Distance in Education, Diploma Graduate Post Education Teacher PGDE DLITE USS University Court University UK GAAP UCEA UASLAS THE World Rankings THE World STSS Strategic Plan 2015-20 Plan Strategic SPF SIMD20 Senate Statement of Intent on Diversity of Intent Statement Scottish Funding Council (SFC)’s Financial Memorandum Financial (SFC)’s Council Funding Scottish Risk Management Framework Risk Management RESAS Research Excellence Framework Excellence Research Remuneration Committee Remuneration 2018 Annual Report & Accounts www.abdn.ac.uk
Scottish Charity Number SC013683
Item 11.a Annual Report 2018.pdf - Page 102 of 102 Overall Page 169 of 323 11 December 2018 University of Aberdeen
Audit findings for the year ending 31 July 2018
For discussion at the Audit Committee on 1 November 2018
25 October 2018
© 2018 KPMG LLP, a UK limited liability partnership, and a member firm of the KPMG network of independentItem 11.2 member External firms affili Auditorsated with KPMGReport.pdf International - Page 1 of 29 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 170 of 323 Introduction
To the Audit Committee How we have delivered audit quality
We are pleased to have the opportunity to meet with you on Audit quality is at the core of everything we do at KPMG and we believe that it is not just about reaching the right opinion, 1 November 2018 to discuss the results of our audit of the but how we reach that opinion. Some of the ways in which consolidated financial statements of the University of we drive audit quality are demonstrated throughout our Aberdeen (the “University”) (and its subsidiaries (the report and include: “Group”), as at and for the year ended 31 July 2018. We are providing this report in advance of our meeting to enable you to consider our findings and hence enhance the quality of our discussions. This report should be read in Understanding Quality Robust conjunction with our audit plan and strategy report, dated 10 the entity reviews challenge April 2018 and our update report of 18 September 2018. Our audit is substantially complete. There have been no significant changes to our audit plan and strategy. Contents Subject to the Audit Committee’s approval, we expect to be in a position to sign our audit opinion on the financial Important notice 3 statements in December 2018, provided that the outstanding Audit findings 4-5 matters noted on page 3 of this report are satisfactorily resolved. Financial position 6-7 We expect to issue an unmodified Auditor’s Report. Significant risks and focus areas 8-22 We draw your attention to the important notice on page 3 of Governance 24 this report, which explains: the purpose of this report; Internal control 25 limitations on work performed; and restrictions on distribution of this report. Data analytics 26 Yours sincerely, KPMG fees 27 David Derbyshire Audit quality 28 25 October 2018
Item 11.2 External Auditors Report.pdf - Page 2 of 29 © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International 2 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 171 of 323 Important notice
Purpose of this report This report is presented This Report has been prepared in connection with our audit of the consolidated financial under the terms of our statements of the University of Aberdeen (the “University”) (and its subsidiaries (the “Group”), audit engagement letter. prepared in accordance with FRS 102 and the 2015 Statement of Recommended Practice – Accounting for Further and Higher Education, as at and for the year ended 31 July 2018. • Circulation of this report This Report has been prepared for the University’s Audit Committee, in order to communicate is restricted. matters of interest as required by ISAs (UK and Ireland), and other matters coming to our • The content of this attention during our audit work that we consider might be of interest, and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to report is based solely on anyone (beyond that which we may have as auditors) for this Report, or for the opinions we the procedures have formed in respect of this Report. necessary for our audit. This report summarizes the key issues identified during our audit but does not repeat matters we have previously communicated to you.
Limitations on work performed This Report is separate from our audit report and does not provide an additional opinion on the Group’s financial statements, nor does it add to or extend or alter our duties and responsibilities as auditors reporting to the Company’s members in accordance with the Companies Act. We have not designed or performed procedures outside those required of us as auditors for the purpose of identifying or communicating any of the matters covered by this Report. The matters reported are based on the knowledge gained as a result of being your auditors. We have not verified the accuracy or completeness of any such information other than in connection with and to the extent required for the purposes of our audit. Status of our audit Our audit fieldwork is complete, subject to discussion at the Audit Committee on 1 November 2018. We are completing our final checks on the financial statements narrative and disclosures and our review of management’s going concern paper.
Restrictions on distribution The report is provided on the basis that it is only for the information of the Audit Committee of the University, that it will not be quoted or referred to, in whole or in part, without our prior written consent; and that we accept no responsibility to any third party in relation to it.
Item 11.2 External Auditors Report.pdf - Page 3 of 29 © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International 3 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 172 of 323 Audit findings
The University’s strategic objectives remained based on its 2015-2020 Strategic Plan during the financial year, focusing on People, Research and teaching and learning. ─ Maintaining and growing research income and international tuition fees remain key objectives. Strategic ─ The University continues to focus on developing overseas partnerships and arrangements to extend context its international reach. In a joint project with a local partner, a campus in Qatar opened in April 2017. Share of fee income for the first 130 students in the 2017/18 financial year was £0.2m. The campus in South Korea will not open and the University remains in discussion with its partners in respect of the financial and commercial terms of the contract termination. ─ New, future international opportunities continue to be evaluated, including in Mexico and Sri Lanka.
The University reported a total comprehensive income of £9.7m for the year to 31 July 2018 (2017: £10.9m). This includes actuarial pension scheme credits of £13.3m and £18.4m in 2018 and 2017 respectively. Other items which are individually significant in the current year comprise provisions for onerous contracts of £1.1m (principally Korea), impairment charges of £2.2m and a gain on disposal of land of £3.0m. Financial There has been no significant change in the estimation of the USS pension deficit provision in the position year and no significant USS gains or losses. A significant increase in the required deficit provision is highly likely for 2018/19, on finalisation of the USS’s 2016 triennial valuation. The possible financial impact for 2019 is fully disclosed in the 2018 financial statements. An increase in cash is reported for the year of £4.3m. There were no major capital expenditure projects. A £1.1m improvement is net current liabilities to £12.3m reflects the benefit of a land disposal, which is partly offset by end of finance lease liabilities payable within one year.
We received full and complete financial statements at the start of our audit fieldwork. These were prepared to a high quality and were supported by working papers. Management responded promptly Year end to our requests for additional information. process Areas of our audit testing, such as pensions and tuition fee testing, have increased in detail this year and we have debriefed with management about how we can better anticipate and incorporate these new requirements into the audit fieldwork process.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 4 (“KPMG International”), a Swiss entity. All rights reserved. Item 11.2 External Auditors Report.pdf - Page 4 of 29 Overall Page 173 of 323 Document Classification: KPMG Confidential Audit findings (continued)
Our audit has reflected the financial statement level risks and focus areas set out in our April 2018 audit Financial plan. Our testing has been concluded satisfactorily. We anticipate issuing an unqualified audit opinion statements on the 2017/18 financial statements, following their approval by the Court. and There have been no significant changes to the requirements of FRS 102 to apply for the 2018 year end. accounting We have considered the University’s accounting policies applied in the 2018 financial statements and policies agree that they remain appropriate and have been applied consistently with the prior year.
Consistent with prior years, the University is required to apply the Scottish Code for Good Higher Education Governance (published in July 2013) (‘the Code’). 2017/18 is also a transitional year for compliance with the new 2017 code. The University has considered and set out in the Annual Report the extent to which its governance Governance arrangements meet with the requirements of both the 2013 and 2017 Code and explained specific departures (whether temporary or ongoing) and alternative arrangements 2017 Code changes include guidance on evidence to be evaluated by remuneration committees and the requirement for an annual public meeting at which the Principal and members of the governing body should give an account of the institution’s performance and be available to answer questions.
Internal We have tested the design and operation of controls over the University’s core financial processes and procedures. We have not identified any significant exceptions in addition to the specific IT controls finding reported in our June 2018 report, which was actioned before year end.
Mandatory We have no significant matters to report in respect of; (i) audit adjustments; (ii) auditor independence matters and non-audit fees; and (iii) management representation letter content.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 5 (“KPMG International”), a Swiss entity. All rights reserved. Item 11.2 External Auditors Report.pdf - Page 5 of 29 Overall Page 174 of 323 Document Classification: KPMG Confidential Financial position – result for the year
During both 2017/18 and 2016/17 there were a number of individually significant items that impacted on the reported result for the year. A reconciliation to management’s determination of the underlying deficit for the year is below, highlighting a number of key items:
Year ended Year ended £m Page 31 July 2018 31 July 2017
Deficit before tax and joint venture loss (3.0) (6.5) Add back - Gain on sale of land to Bancon 17 (3.0) Unrealised gain on investments (2.4) (3.8) Impairment of residential investment property and student halls 17 3.1 4.9 Provision for onerous contracts (Korea / student accommodation) 18 1.1 2.5 Adjustment to account for pensions on a cash basis* 0.9 2.7 Tuition fee provision adjustment** (1.1) - Severance costs charge/(provision release) 0.5 (0.6) RDEC income (2017 only) - (1.2) Deficit before individually significant items (3.9) (2.0)
Source: draft consolidated financial statements * The pension adjustment is to adjust from an accounting to cash basis for USS and defined benefit schemes ** The tuition fee provision adjustment relates to credits for fees income which is not directly allocated to schools (exchange student income, fees retained from drop outs). It is separately disclosed only in 2018 due to its larger size.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 6 (“KPMG International”), a Swiss entity. All rights reserved. Item 11.2 External Auditors Report.pdf - Page 6 of 29 Overall Page 175 of 323 Document Classification: KPMG Confidential Financial position – balance sheet movements
The increase in net assets principally reflects a reduction in UASLAS defined benefit pension liabilities, offset by fixed asset depreciation in excess of additions. 2018 movements are consistent with 2017.
£m Page 2017/18 2016/17 Net assets at 1 August 379.9 369.1
Reduction in defined benefit pension liabilities (principally UASLAS) 11 12.4 14.7
Reduction in fixed assets (depreciation or impairment in excess of additions) 17 (9.5) (9.0)
Gain on disposal of land (debtor) 17 3.0 -
Increase in short term finance liabilities (1.5) -
Reduction in long term liabilities (reduction in capital grants and finance leases) 4.4 0.6
Other working capital movements 1.0 2.3
Net assets at 31 July 389.7 379.9
Source: draft consolidated financial statements
In 2018, the £1m reduction in net current liabilities includes a receivable for the gain of £3m on the sale of Rowett land, offset by higher short term finance lease liabilities (above). Long term liabilities have reduced as a result of finance lease repayments as well as due to the unwind of deferred capital grants.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 7 (“KPMG International”), a Swiss entity. All rights reserved. Item 11.2 External Auditors Report.pdf - Page 7 of 29 Overall Page 176 of 323 Document Classification: KPMG Confidential Significant risks and focus areas Understanding
Relevant factors affecting our risk assessment Inherent External susceptibility Significant risks Size Complexity scrutiny to fraud/error This is the financial H M M H statement risk 1 Tuition fee income assessment in our April 2018 2 Research income H M M H audit plan. It has not Defined benefit pensions H H H H required 3 revision during Management override our subsequent 4 H M H H audit work. of controls
Other areas of audit focus Audit risk 5 Funding and going concern M M M M H Higher 6 Carrying value of fixed assets H M L M
M Moderate 7 Provisions and accruals L M M M
8 Development Trust L M M M L Lower 9 International activities M H M M
10 Disclosures - M H M
11 Use of funds H L H L
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independentItem 11.2member External firms affilia Auditorsted with KPMG Report.pdf International - Page 8 of8 29 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 177 of 323 Significant risks (continued) Scepticism Challenge Specialists
Revenue recognition Fraud risk related to misstatement of revenue for tuition fee 13 2 income and research income
Significant audit risk Procedures Findings
Professional standards require us to — We tested the reconciliation We undertook our procedures without make a rebuttable presumption that control between the student exception. the fraud risk from revenue records systems and income recognition is a significant risk. We recorded. We inspected the University’s updated documentation for revenue have rebutted the presumption of — We tested controls over the recognition and we concur with the fraud risk for revenue streams other recording of cash receipts. than tuition fee income and research approach adopted for the different — income. We vouched a statistical sample courses identified, including the basis of income transactions to for deferring income between Tuition fee income underlying student records (as accounting periods. Tuition fee and education contract evidence of income earned and International campus fee income, income represents approximately one in which period) and also to whilst forecast to grow, was limited in quarter of total income. Whilst we bank receipts. value in the year. The University’s have rebutted the risk of fraud for fees — We evaluated the materiality of share of fees from Qatar was £0.2m from courses that have completed income from flexible provision for the year. during the financial year, we have of courses and and international retained a fraud risk for income campus fee income. We concur with the accounting recognition for less routine flexible adopted. — provision (for example online courses) We recalculated income and courses that span the year end recognised for a sample of (and which have a higher risk of courses spanning the year end. recognition cut off). We will also Our sample size was calculated continue to monitor the materiality of to reflect the presumed risk of international campus fees. fraud for revenue recognition.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independentItem 11.2member External firms affilia Auditorsted with KPMG Report.pdf International - Page 9 of 29 9 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 178 of 323 Significant risks (continued) Scepticism Challenge Specialists
Revenue recognition Fraud risk related to misstatement of revenue for tuition fee 13 2 income and research income
Significant audit risk Procedures Findings
Research income — We evaluated and tested the We are satisfied that income has been Research income is a significant control framework over research fairly recognised for research grants income stream to the University and projects from pre-award to post- and contracts in the year to 31 July may require judgement in respect of award and completion. We 2018 and that research debtors the recognition and recoverability of tested controls over cost recognised are recoverable. income relating to grants and projects allocation to research projects. which may span a number of financial — We substantively analysed We concur with the accounting reporting periods. research activity by funder and adopted. Consequently, we have not rebutted specifically considered any the revenue recognition fraud risk for grants with non-standard terms research income. and conditions to ensure that the activities meet the definition of research for financial reporting purposes. — For research income we performed specific item testing over material balances, including testing the recoverability of related research debtors.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independentItem 11.2member External firms affilia Auditorsted with KPMG Report.pdf International - Page 10 of 29 10 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 179 of 323 Significant risks (continued) Scepticism Challenge Specialists
Pension liabilities Risk of error relating to assumptions and estimates used to 3 to value defined benefit pension obligation
Significant audit risk Procedures Findings
The University is principally a member For UASLAS: The UASLAS / SPF discount rate for of the UASLAS, Strathclyde and USS — KPMG specialists reviewed pension liabilities has risen year on defined benefit pension schemes. the economic and year from 2.7% to 2.9%. This, along UASLAS and Strathclyde scheme demographic assumptions with increased asset values, has underlying actuarial decreased the University’s defined The valuation of the UASLAS and benefit pension obligation. Strathclyde defined benefit schemes calculations and compared relies on actuarial assumptions and these to our central The 2.9% UASLAS discount rate used data in respect of scheme participants benchmarks; is marginally outside of our acceptable and their benefits. It is therefore — We tested the level of range. This is because Mercers have critical that the assumptions and data contributions used by the (as in 2017) used both “A” as well as used to value liabilities reflect the actuary to those actually paid “AA” corporate bonds in its definition profile of the University’s employees during the year; of “high quality corporate bonds” used to establish the discount rate. and the scheme terms. — We evaluated the There are also critical financial membership data used by the Whilst we do not agree with this assumptions (including the discount actuary, methodology, we consider other rate) and demographic assumptions — We agreed actuarial reports to individual valuation assumptions, and used to calculate the University’s financial statement the effect of all valuation assumptions liability. disclosures; and combined, to be “balanced”. Our conclusion is illustrated over-page. Assets are fair valued at the balance — Independently, we obtained sheet date based on derived market asset statements and valued Overall, we concur with the prices. price data used for asset accounting adopted. valuations.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independentItem 11.2member External firms affilia Auditorsted with KPMG Report.pdf International - Page 11 of 29 11 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 180 of 323 Significant risks (continued) Scepticism Challenge Specialists
Pension liabilities Risk of error relating to assumptions and estimates used to 3 to value defined benefit pension obligation
The overall economic and demographic Consistent Assessment v Assumption Overall assumptions adopted by the University methodology to acceptability? KPMG central prior year? benchmark for UASLAS, when combined, are considered to be “balanced” relative to our central rates and within our normally Discount rate acceptable range overall. RPI inflation (including inflation The discount rate assumption was risk premium) individually outside of our normally CPI inflation acceptable range, albeit the impact is offset by other assumptions such that overall the basis is within our normally Pension increases acceptable range.
Salary increases Mortality Other demographics Overall assessment
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independentItem 11.2member External firms affilia Auditorsted with KPMG Report.pdf International - Page 12 of 29 12 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 181 of 323 Significant risks (continued) Scepticism Challenge Specialists
Pension liabilities Risk of error relating to assumptions and estimates used to 3 to value defined benefit pension obligation
Significant audit risk Procedures Findings
The University is principally a member of — For the USS pension provision The University continues to the UASLAS, Strathclyde and USS we confirmed the deficit recognise a provision for its share defined benefit pension schemes. payments notified to the of USS deficit funding obligations. University. USS This amounts to £27.5m at 31 July As a multi-employer scheme, the USS is — We reviewed the salary 2018 (31 July 2017: £27.5m). increase and corporate bond accounted for as a defined contribution The year end USS provision has rate assumptions as at 31 July scheme. Provision is made to reflect the been appropriately calculated 2018 against industry University’s contractual obligation to using a discount rate, based on a benchmarks and our own fund the scheme deficit, as at the balance high quality corporate bond (with evaluation. sheet date. the same duration as the USS The 2017 triennial valuation of the USS — We recalculated the pension liability) of 2.14% (2017: 1.85%) defined benefit obligation (which may provision recognised in the and a future salary increase impact future deficit funding) is in the financial statements using this forecast for the University of 5.0% process of being finalised. data. (which is considered a conservative but relatively — We increased our audit insensitive assumption). procedures in respect of disclosure, to evaluate the As set out on the next page, sufficiency of disclosures in we consider USS financial 2018 relating to the potential statement disclosures, higher deficit payments which relating to possible 2019 may arise in 2019, following the changes, to be fairly stated. 2016 triennial valuation.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independentItem 11.2member External firms affilia Auditorsted with KPMG Report.pdf International - Page 13 of 29 13 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 182 of 323 Significant risks (continued) Scepticism Challenge Specialists
Pension liabilities Risk of error relating to assumptions and estimates used to 3 to value defined benefit pension obligation
“…The 2017 actuarial valuation of USS has been undertaken but has not been formally completed. The Detailed disclosure in total pension liability for the whole multi-employer scheme at 31 March 2017 is estimated to increase respect of possible significantly to £7.5bn and the USS Trustee has therefore concluded that in order to maintain the higher USS Scheme’s current level of benefits the combined employer and employee contribution rate needs to provisions from 2019 increase. …“ (and the potential magnitude of the In the judgment of the University, as the 2017 valuation is not formally completed….it remains income and appropriate at 31 July 2018 to continue to account for the past deficit obligation in accordance with the funding plan agreed after the 2014 actuarial valuation, applying a deficit funding rate of 2.1%. expenditure charge in the year ending 31 However, there is a significant risk that the 31 July 2018 year-end provision as calculated will not reflect July 2019) is included the position following the final outcome of negotiations, potentially by a very significant amount the financial depending upon what is agreed as regards future deficit contributions and their duration. The University statements, in the expects to have greater clarity in this respect during the next financial year. financial review and in note 27. The following indicative sensitivity analysis outlines the potential impact on the University’s 31 July 2018 provision liability of £27.5 million, which is calculated using the 2014 deficit funding rate of 2.1%.... We concur with the — The impact of a 1% increase to the employer deficit recovery rate to 3.1% results in a provision value quantification of the of £39.9m (this would require a provision increase and charge to the income and expenditure sensitivities disclosed statement of £12.4m). which we have — The impact of a 3.9% increase to the employer deficit recovery rate to 6.0% results in a provision value independently of £73.3m (this would require a provision increase and charge to the income and expenditure recalculated. statement of £45.8m).
An employer deficit recovery rate increase of 3.9…has been indicated in communications from the USS as a possible outcome and therefore is included in the sensitivity calculation above. The actuarial valuation and notification of revised deficit contributions is expected to be finalised in the financial year ending 31 July 2019 and the revised provision, as required, is expected to be recognised in the financial statements for this year.”
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independentItem 11.2member External firms affilia Auditorsted with KPMG Report.pdf International - Page 14 of 29 14 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 183 of 323 Significant risks (continued) Scepticism D&A Challenge
Fraud risk related to unpredictable way 4 Management override of controls* management override of controls may occur
Significant audit risk Procedures Findings
Professional standards require us to To address this risk, we performed Our work did not identify any communicate the fraud risk from testing of journal entries during matters that require adjustment management override of controls as the year and at the year end. We in the financial statements or significant. also: which are required to be brought to your attention. Management is in a unique position to — Undertook a review of unusual perpetrate fraud because of their ability transactions in the year No exceptions were noted. to manipulate accounting records and — Made enquiries with employees Our assessment of prepare fraudulent financial statements outside the finance department management’s estimates for by overriding controls that otherwise specific significant risks, — Undertook audit tests of an appear to be operating effectively. such as pensions, are set out unpredictable nature We have not identified any specific separately in this paper. additional risks of management — Identified and evaluated higher Overall, our conclusion is override relating to this audit from our risk journals. that management’s planning or prior year experience. estimates are balanced. — Reviewed management’s accounting estimates for bias.
*Significant risk that professional standards require us to assess in all cases
Item 11.2 External Auditors Report.pdf - Page 15 of 29 © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International 15 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 184 of 323 Other areas of focus Scepticism Challenge
5 Funding and going concern
Other areas of focus Procedures Findings
Court is required to consider We have received We note the following: annually, under the Scottish and are reviewing — Net current liabilities have decreased year on year from Code of Good HE Governance, management’s £13.4m to £12.2m. The financial statements include an whether it continues to be paper on going analysis of the significant non-cash elements of this appropriate to use the going concern in balance, such as holiday pay and capital grants. concern basis to prepare the advance of its — There are no significant capital commitments University’s financial presentation to the outstanding at year end, though increased pension statements. November Audit costs are forecast in the short term. Committee. Whilst we have not identified — We concur with management that a significant any specific risk factors relating reduction in EU student fee income and research grant to going concern, it is a income as a result of leaving the EU could have an pervasive audit judgment. adverse impact. We also agree that the likely timing and phasing of such reductions (if arising) would enable mitigating steps to be taken. The risk should continue to be monitored. — In the medium term, the University is required to repay £10m of its Barclays bank loan in 2021. Options for refinancing the Barclays facility are underway. The ability of the University to increase its long term debt is considered to be an option (if required). Having considered the financial position and the forecast results and cash flows for at least the next 12 months, we are satisfied that it is appropriate to adopt the going concern assumption.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independentItem 11.2member External firms affilia Auditorsted with KPMG Report.pdf International - Page 16 of 29 16 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 185 of 323 Other areas of focus (continued) Scepticism Challenge
6 Carrying value of tangible fixed assets
Other areas of audit focus Procedures Findings
The net book value of fixed assets — We assessed the — Investment property valuations have at 31 July 2018 is £536m in the depreciation charge in the been reduced by a net £0.9m (2017: draft financial statements. year by recalculating the £3.2m). The Group investment property There were no significant new depreciation charge in line balance carried forward is £37.2m relating construction projects in progress with useful lives. No to 141 residential and commercial in the 2017/18 financial year. changes in estimated lives properties. The overall reduction in the have been made. University’s Aberdeen residential The University undertakes an properties over the past three years is — We sampled capital annual exercise to evaluate 18%, which on average is consistent with additions in the year by indicators of impairment and 2018 third party assessments of market agreeing individual items changes to useful economic lives. movements since 2015. to supporting Investment properties, principally documentation to confirm residential properties in Aberdeen, — In the year the University has recorded a the capital nature of the are required to be revalued £2.2m impairment charge mainly for the expenditure. annually. Crombie and Johnston Halls of Residences which are no longer used. The Group continues to hold land — We met with Angus for potential future disposal at the Donald, Head of Estates to inspect the valuation of — Land was sold on 31 July 2018, as part of former Rowett Institute site in the ongoing divestment of property at Bucksburn. investment properties and the impairment review Bucksburn, resulting in a £3.0m gain. process for other assets, — Our independent recalculation of the together with planned depreciation charge noted no matters. capital expenditure and potential asset disposals. We concur with the accounting adopted.
Item 11.2 External Auditors Report.pdf - Page 17 of 29 © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International 17 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 186 of 323 Other areas of focus (continued) Scepticism Challenge
7 Provisions and accruals
Other areas of audit focus Procedures Findings
The University is likely to have to — We have inspected In respect of Korea, the University’s negotiations estimate certain liabilities at the calculations for with the government and educational funders of the balance sheet date. provisions provided campus are continuing. The funders initially have for in the year. claimed $6m as contribution for their campus Prior year onerous lease provisions for development costs. This has been rejected formally third party student accommodation — We have inspected by the University, which has made a counter-offer have been used in the year. At 31 July third party to partially repay the pre-establishment funding (the 2018, management have provided a correspondence full amount of which is provided). further £0.4m based on projected and legal advice in utilisation of the reduced third party respect of the If agreement is not able to be reached, under the leases held. potential costs of contract, the matter will be referred to arbitration in the Korean campus. The University has recorded a Singapore. provision of £0.7m at 31 July 2018 in — We have evaluated relation to a commercial exit from the the sufficiency of We concur with the accounting and Korean campus. The amount is a best the financial disclosure (below) adopted. However, we will estimate the potential liability relating statement continue to monitor any significant changes to Korea and represents the total value disclosure relating prior to signature of the financial statements, of pre-establishment funding received to provisions and which may impact the provision or by the University which may require contingent disclosures. repayment. liabilities
Disclosure in the draft financial statements (note 21b): The University is in discussion with our South Korean partners regarding the ongoing viability of opening the campus in South Korea. As a result the University has provided for £0.7m for the repayment of pre establishment costs to our partners. Repayment of the pre-establishment costs is considered to be the most likely outcome but is subject to agreement between the partners. Any alternative settlement would require further discussion and cannot be quantified at this time.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independentItem 11.2member External firms affilia Auditorsted with KPMG Report.pdf International - Page 18 of 29 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 187 of 323 Other areas of focus (continued) Scepticism Challenge
8 Development Trust accounting
Other areas of audit focus Procedures Findings
In 2017, after consideration of the — We have reviewed the Trustee There is no change to the non- organisational and governance and Board minutes of the Trust consolidation of the Development arrangements in place (and and University. Trust at the 2017 year end. attendance at a Development Trust — We have enquired as to any We have not identified during our board meeting), we reported that we substantive changes to the audit any substantive changes in continued to be content with organisation and role of the 2017/18 which would require a management’s judgement that the Trust which may impact change to the existing accounting Trust was not under the control of determination of its control. judgment of non-consolidation. the University and hence should not be consolidated within the University As in prior periods, we highlight the financial statements. need to consider, on an ongoing We update our assessment annually. basis, the potential accounting implications of any future organisational or structural changes to the Development Trust. We concur with the accounting adopted.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independentItem 11.2member External firms affilia Auditorsted with KPMG Report.pdf International - Page 19 of 29 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 188 of 323 Other areas of focus (continued) Scepticism Challenge
9 Tax and commercial risks arising from international activities
Other areas of audit focus Findings Findings
The University continues to explore, — We have held regular The University has made provision for develop and operate overseas meetings with its best estimate of expected costs partnerships and arrangements to management to relating to exit from the Korea campus extend its international student reach. evaluate project (above). New ventures may raise accounting developments with considerations for: regard to ongoing Whilst critical for the University’s strategic plan, other international — Income recognition international activities. activities have not had a significant — Taxation impact on the 2018 financial statements. — Where transactions — Disclosure of financial commitments have a financial We concur with the accounting or leases impact in the year to adopted in the year. We will — Counterparty risk 31 July 2018, we have continue to discuss how potential tax risks (particularly from the Taxation risks include compliance with requested supporting movement of people) are being local regulations and more generally documentation (such monitored and controlled. understanding and monitoring the UK as contracts and and overseas payroll liabilities that may agreements). arise from academics working abroad.
Item 11.2 External Auditors Report.pdf - Page 20 of 29 © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International 20 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 189 of 323 Other areas of focus (continued) Scepticism Challenge
10 Disclosures
Other areas of audit focus Our year end assessment
The annual report and financial In our evaluation of the draft 2017/18 financial statements, we have paid statements should present a fair particular attention to the following areas of disclosure which are material and balanced presentation of the by nature: results for the period and the — Staff costs and remuneration of higher paid staff, including the ex financial position at the year end. officio Principal Disclosures should be in — Pensions, including USS and pension security (see above) accordance with FRS 102, the — Related party transactions Accounts Direction of the — Funding and going concern Scottish Funding Council, and — Financial commitments the Scottish Code of Good HE Governance. Management have discussed with us at an early stage all new disclosures which has allowed us to consider and suggest any amendments on a timely basis. We consider disclosures to be appropriately prepared, in line with FRS 102, the HE SORP and the SFC Accounts Directive.
Remuneration disclosures (note 7 of the financial statements) For remuneration of the ex officio Principal, we have inspected the original employment contract and compromise agreement and confirmed our understanding of the terms with the Director of Human Resources. In our view, the contractual notice payment meets the definition of a termination payment and therefore is correctly recognised (in full) and disclosed the 2017/18 financial year as a non-salary item. The new 2018 SFC “median pay ratio disclosures” (between the Principal and workforce) are fairly stated, both excluding and including the contractual notice payment.
21 © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independentItem 11.2member External firms affilia Auditorsted with KPMG Report.pdf International - Page 21 of 29 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 190 of 323 Other areas of focus (continued) Scepticism Challenge
11 Use of funds
Other areas of audit focus Our year end assessment
As in previous years, our opinion includes an Our audit of regularity was conducted in accordance assessment as to whether: with Practice Note 10 (revised): Audit of financial statements of public sector entities in the United — Funds from whatever source administered by the Kingdom, issued by the Auditing Practices Board. Group or the University for specific purposes have been properly applied to those purposes and, if Our approach to completing the regularity audit was to relevant, managed in accordance with relevant obtain a sufficient understanding of the framework legislation and any other terms and conditions under which the University operates, and to test attached to them; compliance. In particular, this meant gaining assurance that income and expenditure transactions are in — Funds provided by the Scottish Funding Council have accordance with appropriate authorities and that the been applied in accordance with the Financial accounting presentation and disclosure conforms to Memorandum with Higher Education Institutions. applicable statutory and other requirements.
We used a regularity work programme to ensure compliance with these requirements.
We have no findings to report. Our audit opinion will be unqualified in respect of this matter.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independentItem 11.2member External firms affilia Auditorsted with KPMG Report.pdf International - Page 22 of 29 22 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 191 of 323 Governance and financial control
Item 11.2 External Auditors Report.pdf - Page 23 of 29 Overall Page 192 of 323 Governance arrangements Scepticism Challenge
Corporate governance Procedures Findings
The University includes a corporate — We have inspected the We have updated our understanding of governance statement within the University’s evaluation the University’s governance framework annual report. The following of its adoption of the and documented this as part of our elements have been included. new 2017 code and overall audit assessment of the reviewed the Annual University’s risk and control Report disclosures in environment. respect of the Description of We have observed aspects of the University's Statement of compliance statement governance process through attendance governance compliance with made. at Audit Committee throughout the year the Code framework — We have independently and by reviewing minutes of other evaluated the meetings. Overall control Review of risk University’s compliance Whilst we express no specific audit arrangements management with other governance opinion on this matter, from the and internal related disclosures, control procedures we have undertaken, including under the SFC we consider the University’s Accounts Direction governance framework to be fairly 2017/18. presented in the Annual Report (including the disclosures relating The financial year 2017/18 is a to transition to the 2017 Code). transitional year for adoption of the new 2017 Scottish Code of Good HE Governance.
Item 11.2 External Auditors Report.pdf - Page 24 of 29 © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International 24 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 193 of 323 Internal control
We have no additional internal control findings in addition to those raised and discussed in our audit committee papers in June and September. Internal control Our 2017/18 findings related to timeliness of removal of leavers by IT (a Grade 1 matter which was addressed in the year) and the documentation of approval processes for lower value research grants findings (Grade 3).
There are no open matters relating to prior years.
We evaluated the procedures and controls related to fraud as being designed and implemented effectively. The University has a fraud policy and a whistle-blowing policy which include reference to a number of internal procedures designed to prevent fraud and ensure employees can report Fraud and suspicions in a confidential and appropriate manner. irregularity We have obtained representations from management that all known or suspected instances of fraud were disclosed to us during the audit. There were no material instances of fraud reported during 2017-18.
Internal Audit carry out an annual programme of testing. Whilst we do not directly or indirectly rely on Internal this work, we have had regard to Internal Audit’s findings when evaluating our own audit risk audit assessment and when determining the nature, extent and timing of our audit procedures.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative 25 (“KPMG International”), a Swiss entity. All rights reserved. Item 11.2 External Auditors Report.pdf - Page 25 of 29 Overall Page 194 of 323 Document Classification: KPMG Confidential Data & Analytics – other updates D&A
Data & Analytics - Substantive testing
We used Data & Analytics in the year to check completeness of the journals population and to Journals focus our testing over higher risk manual journals, including specifically testing journals impacting research or tuition fee revenue recognition at year end, which may be more susceptible to creating a misstatement in the financial statements, due to fraud or error. We have no specific findings to report.
We used our Data & Analytic tools to assist our recalculation and reconciliation of research Research income, costs and receivables. This included testing to ensure that the projects ledger is well income maintained with expiring projects being closed down on a timely basis and identification of any outliers in the population. We have no specific findings to report (our findings for the significant risk relating to research income is addressed above, in this paper).
Purchase to In 2016 and 2017 we reported to the Audit Committee that purchase orders below £3,000 had been able to be raised, approved and receipted by the same person. This matter was pay (update addressed by management in 2017 and last year we highlighted that by 31 July 2017, the from prior volume of such transactions had substantially reduced. In 2018, we have not identified any year) transactions which have been raised, approved and receipted by the same person, nor raised and approved by the same person. We have no specific findings to report.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independentItem 11.2member External firms affilia Auditorsted with KPMG Report.pdf International - Page 26 26 of 29 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 195 of 323 Audit and non-audit fees for 2017/18
KPMG services provided to the University and its group for:
2017-18 2016-17 2015-16 (excl VAT) (excl VAT) (excl VAT) Audit of the University financial statements: 41,750 38,000 38,000 Audit of the subsidiary company financial statements: 2,000 2,000 2,000 Total audit fees 43,750 40,000 40,000
Other non-audit services:
—Grant and bursary audits 5,000 4,500 4,000 —VAT advice - - 11,000 —Tax compliance - - 5,000 —Other tax advice - 8,000 - —FRS 102 - - 4,000 —Corporate intelligence in relation to overseas agents 1,750 3,400 - —Data security audit (Grampian Data Safe Haven) 3,948 9,000 - Total non-audit services 10,698 24,900 24,000 Total fees 54,448 64,900 64,000 Non-audit fees as a % of audit fees 20% 38% 38%
Final disclosures will be reconciled to the 2018 financial statements. The financial statements disclosures differ because they are inclusive of VAT at 20%, which is not a fee income to KPMG but is a cost to the University. During 2017/18 we reported non-audit fees for Grampian Data Safe Haven of £10,000. By 31 July 2018, only £3,948 of the three year fee had been earned and the disclosure has been adjusted to this actual basis.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independentItem 11.2member External firms affilia Auditorsted with KPMG Report.pdf International - Page 27 27 of 29 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 196 of 323 How we delivered audit quality
CONTINUOUS TECHNICAL IMPROVEMENT RECRUITMENT & DEVELOPMENT OF QUALIFIED TEAMS EXCELLENCE AND QUALITY SERVICE DELIVERY
Ongoing Years’ Continuity Involvement dialogue Training experience of team of specialists Industry knowledge
ASSOCIATION WITH THE RIGHT CLIENTS Quality reviews Xm X% Consultation ! processes Understanding the entity Materiality Coverage Risk-based
Root cause Timely analysis CLEAR STANDARDS AND EFFECTIVE & EFFICIENT reporting ROBUST AUDIT TOOLS
Cautious Optimistic Data and Independent Scepticism and Robust Emerging Action analytics view judgement challenge challenges
Item 11.2 External Auditors Report.pdf - Page 28 of 29 © 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International 28 Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Overall Page 197 of 323 The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
© 2018 KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Item 11.2 External Auditors Report.pdf - Page 29 of 29 Overall Page 198 of 323 Document Classification: KPMG Confidential
Finance and Procurement University Office, Kings College Old Aberdeen AB24 3 FX Scotland UK
11 December 2018
KPMG LLP 37 Albyn Place Aberdeen Scotland AB10 1JB
Dear Sirs
The University of Aberdeen
This representation letter is provided in connection with your audit of the Group and University financial statements of the University of Aberdeen (“the University”), for the year ended 31 July 2018, for the purpose of expressing an opinion:
(i) as to whether the financial statements give a true and fair view of the state of the Group’s and University’s affairs as at 31 July 2018 and of the Group’s and University’s income and expenditure, gains and losses, changes in reserves and cash flows for the year then ended;
(ii) whether the financial statements have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, and with the 2015 Statement of Recommended Practice – Accounting for Further and Higher Education (FEHE SORP);
(iii) whether the financial statements have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 14 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
These financial statements comprise the Group and University’s balance sheets as at 31 July 2018, the Group and University’s Statements of Comprehensive Income, the Group and University’s Statements of Changes in Reserves, and the Group Statement of cash flows, and notes, comprising a summary of significant accounting policies and other explanatory notes.
Registered Scottish Charity No SC013683 Item 11.2a Representation Letter 2017-18.pdf - Page 1 of 7 Overall Page 199 of 323
The University Court confirms that the representations it makes in this letter are in accordance with the definitions set out in the Appendix to this letter.
The University Court confirms, to the best of its knowledge and belief, having made such inquiries as it considered necessary for the purpose of appropriately informing itself:
Financial statements
1. The University Court has fulfilled its responsibilities, as set out in the terms of the audit engagement dated 25 February 2015 (extended 21 December 2017), for the preparation of financial statements that:
• give a true and fair view of the state of the Group’s and the University’s affairs as at the end of its financial year and of the Group and University’s income and expenditure, gains and losses, changes in reserves and cash flows for the year then ended; and • have been properly prepared in accordance with UK Generally Accepted Accounting Practice and the FEHSORP; • have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 14 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
The financial statements have been prepared on a going concern basis.
2. Measurement methods and significant assumptions used by the University Court in making accounting estimates, including those measured at fair value, are reasonable.
3. All events subsequent to the date of the financial statements and for which Section 32 of FRS 102 (Events after the End of the Reporting Period) requires adjustment or disclosure have been adjusted or disclosed.
4. There are no uncorrected audit misstatements.
Information provided
5. The University Court has provided you with:
• access to all information of which it is aware, that is relevant to the preparation of the financial statements, such as records, documentation and other matters; • additional information that you have requested from the University Court for the purpose of the audit; and • unrestricted access to persons within the Group and the University from whom you determined it necessary to obtain audit evidence.
6. All transactions have been recorded in the accounting records and are reflected in the financial statements.
Item 11.2a Representation Letter 2017-18.pdf - Page 2 of 7 Overall Page 200 of 323
7. The University Court confirms the following:
(i) The University Court has disclosed to you the results of its assessment of the risk that the financial statements may be materially misstated as a result of fraud.
Included in the Appendix to this letter are the definitions of fraud, including misstatements arising from fraudulent financial reporting and from misappropriation of assets.
(ii) The University Court has disclosed to you all information in relation to:
a) Fraud or suspected fraud that it is aware of and that affects the Group and the University and involves: • management; • employees who have significant roles in internal control; or • others where the fraud could have a material effect on the financial statements; and b) Allegations of fraud, or suspected fraud, affecting the Group and the University’s financial statements communicated by employees, former employees, analysts, regulators or others.
In respect of the above, the University Court acknowledges its responsibility for such internal control as it determines necessary for the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In particular, the University Court acknowledges its responsibility for the design, implementation and maintenance of internal control to prevent and detect fraud and error.
8. The University Court has disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements.
9. The University Court has disclosed to you and has appropriately accounted for and disclosed in the financial statements, in accordance with FRS 102 Section 21, Provisions and Contingencies, all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements.
10. The University Court has disclosed to you the identity of the Group and the University’s related parties and all the related party relationships and transactions of which it is aware. All related party relationships and transactions have been appropriately accounted for and disclosed in accordance with FRS 102 Section 33, Related Party Disclosures.
Included in the Appendix to this letter are the definitions of both a related party and a related party transaction as we understand them and as defined in FRS 102.
Item 11.2a Representation Letter 2017-18.pdf - Page 3 of 7 Overall Page 201 of 323
11. The University Court confirms that:
a) The financial statements disclose all of the key risk factors, assumptions made and uncertainties surrounding the University’s and Group’s ability to continue as a going concern as required to provide a true and fair view.
b) Any uncertainties disclosed are not considered to be material and therefore do not cast significant doubt on the ability of the University and the Group to continue as a going concern.
12. On the basis of the process established by the University Court and having made appropriate enquiries, the University Court is satisfied that the actuarial assumptions underlying the valuation of pension scheme liabilities are consistent with its knowledge of the business and in accordance with the requirements of section 28 of FRS 102.
13. The University Court further confirms that:
a) all significant retirement benefits, including any arrangements that are: • statutory, contractual or implicit in the employer's actions; • arise in the UK and the Republic of Ireland or overseas; • funded or unfunded; and • approved or unapproved, • have been identified and properly accounted for; and
b) all plan amendments, settlements and curtailments have been identified and properly accounted for.
14. In particular the University Court confirms that:
• to the best of our knowledge and belief the University has complied with the requirements of the Charities Act 2011. In particular, the University has disclosed all payments made in relation to trustees expenses and all “connected institutions and bodies” have been disclosed appropriately. Furthermore, all serious incidents, as defined under the Act, have been captured and recorded appropriately; • to the best of our knowledge and belief the University has complied with the terms and conditions of any capital grant funding received during the year and in respect of other capital grant funding received in prior years. In all instances, the University is satisfied that the agreed outputs against which each project will be assessed will be delivered; • to the best of our knowledge and belief the University has complied with the terms and conditions of any revenue grant funding (for example research funding) received in recent years and where agreed outputs are to be delivered as part of the grant agreement, the University has or anticipates delivering these; • In all material respects funds from whatever source administered by the Group and the University for specific purposes have been applied to those purposes during the year ended 31 July 2018 and, if relevant, managed in accordance with relevant legislation, and any other terms and conditions attached to them; and funds provided by the Scottish Funding Council have been applied in accordance with the financial memorandum;
Item 11.2a Representation Letter 2017-18.pdf - Page 4 of 7 Overall Page 202 of 323 • there are no material matters that have arisen that would require a restatement of the corresponding figures; • the carrying value of the tangible fixed assets is fairly stated in line with the requirements of FRS 102 tangible fixed assets; • Information which comprises the operating and financial review is consistent with the financial statements.
This letter was tabled and agreed at the meeting of the University Court on 11 December 2018 Yours faithfully
On behalf of the University Court
Item 11.2a Representation Letter 2017-18.pdf - Page 5 of 7 Overall Page 203 of 323 Appendix A to the Representation Letter of the University of Aberdeen: Definitions
Financial Statements A complete set of financial statements comprises:
• Group and University balance sheets as at the end of the period; • Group and University Statement of Comprehensive Income for the period; • Group and University Statement of Changes in Reserves for the period; • Group Cash Flow Statement for the period; and • notes, comprising a summary of significant accounting policies and other explanatory information.
Material Matters Certain representations in this letter are described as being limited to matters that are material.
FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland states that: Omissions or misstatements of items are material if they could, individually or collectively, influence the economic decisions of users taken on the basis of the financial statements. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. The size or nature of the item, or combination of both, could be the determining factor.
Fraud Fraudulent financial reporting involves intentional misstatements including omissions of amounts or disclosures in financial statements to deceive financial statement users.
Misappropriation of assets involves the theft of an entity’s assets. It is often accompanied by false or misleading records or documents in order to conceal the fact that the assets are missing or have been pledged without proper authorisation.
Error An error is an unintentional misstatement in financial statements, including the omission of an amount or a disclosure.
Prior period errors are omissions from, and misstatements in, the entity’s financial statements for one or more prior periods arising from a failure to use, or misuse of, reliable information that:
a) was available when financial statements for those periods were authorised for issue; and b) could reasonably be expected to have been obtained and taken into account in the preparation and presentation of those financial statements.
Such errors include the effects of mathematical mistakes, mistakes in applying accounting policies, oversights or misinterpretations of facts, and fraud.
Management For the purposes of this letter, references to “management” should be read as “management and, where appropriate, those charged with governance”.
Item 11.2a Representation Letter 2017-18.pdf - Page 6 of 7 Overall Page 204 of 323
Related Party and Related Party Transaction
Related party: A related party is a person or entity that is related to the entity that is preparing its financial statements (referred to in FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland as the “reporting entity”). a) A person or a close member of that person’s family is related to a reporting entity if that person:
(i) has control or joint control over the reporting entity; (ii) has significant influence over the reporting entity; or (iii) is a member of the key management personnel of the reporting entity or of a parent of the reporting entity. b) An entity is related to a reporting entity if any of the following conditions apply:
(i) The entity and the reporting entity are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others). (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member). (iii) Both entities are joint ventures of the same third party. (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity. (v) The entity is a post-employment benefit plan for the benefit of employees of either the reporting entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the sponsoring employers are also related to the reporting entity. (vi) The entity is controlled, or jointly controlled by a person identified in (a). (vii) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). (viii) The entity, or any member of a group of which it is a part, provides key management personnel services to the reporting entity or to the parent of the reporting entity.
Related party transaction A transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.
Item 11.2a Representation Letter 2017-18.pdf - Page 7 of 7 Overall Page 205 of 323 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
AUDIT COMMITTEE ANNUAL REPORT TO THE UNIVERSITY COURT For the year ended 31 July 2018
1. PURPOSE OF THE PAPER
1.1 This is the Twenty Ninth Annual Audit Committee Report to the University Court, covering 1 August 2017 to 31 July 2018, to align with the University’s financial year and Annual Accounts reporting period. This document accompanies the University’s Annual Accounts and reports from the Internal and External Auditors as part of the package of reports to the Scottish Funding Council in December 2018.
1.2 Court is invited to approve the Report in which the Audit Committee confirms to the Court that it is satisfied with the work of the Internal and External Auditors.
1.3 It is the duty of the Audit Committee to report to the University Court any matters that have required particular attention. This includes any Critical risk internal audit recommendations, and any reports of fraud or whistleblowing. These are detailed at 4.3 of the report, Appendix 1.
1.4 Having carefully considered the assessments presented to it by the Internal and External Auditors to the University, the Audit Committee considers that the University’s internal controls and its financial and management systems are adequate and effective.
2. RECOMMENDED ACTION
2.1 Court is invited to approve the Audit Committee Annual Report, prior to its submission to Scottish Funding Council.
3. BACKGROUND
3.1 It is within the Terms of Reference of the Audit Committee to advise the Court on its compliance with corporate governance requirements, good practice guidance and the Scottish Funding Council (SFC) Accounts Direction, and to review the University’s Statement of Corporate Governance in advance of Court approving the audited financial statements.
3.2 The Committee is required to prepare an annual report to the SFC, covering the institution’s financial year and any significant issues up to the date of preparing the report. The report will be addressed to Court, summarising the activity for the year, and providing an opinion on the adequacy and effectiveness of the institution’s risk management, control and governance arrangements, and arrangements for promoting economy, efficiency and effectiveness (VFM) as required by the SFC and Scottish Code of Good Higher Education Governance (2017).
3.3 The Committee will ensure that the Annual Report presents a true and fair assessment of the University’s position and prospects.
3.4 Further information is available from: Ruth MacLure, Policy Adviser and Clerk to the Audit Committee, email: [email protected] telephone: (01224) 273239.
1 November 2018 [V1] FOI Status: Part closed: section 4.3 of Appendix 1.
ItemPage 11.3 1 of Audit 1 Committee_Annual Report_2018.docx - Page 1 of 1 Overall Page 206 of 323 Appendix 1
UNIVERSITY OF ABERDEEN
AUDIT COMMITTEE ANNUAL REPORT TO THE UNIVERSITY COURT For the year ended 31 July 2018
1. TWENTY NINTH ANNUAL REPORT OF THE AUDIT COMMITTEE TO COURT
4.1 The Audit Committee in 2017-18
4.1.1 During the 2017-18 audit cycle, the Audit Committee met on five occasions: 28 September 2017, 2 November 2017, 18 January 2018, 19 April 2018 and 29 May 2018.
4.1.2 The membership of the Committee comprised:
Mr David MacFarlane Retired Accountant and Finance Director (Convener from 1/11/17) Mr Ken Murray Retired Accountant, Finance Director (Convener to 31/10/17)
Mrs Lynne Macfarlan Finance Director Ms Morag McNeill Solicitor Mr Alan McNiven Retired Solicitor (to 31/10/17) Mr Peter Milne Retired Accountant and Finance Director Professor Sir Lewis Ritchie University of Aberdeen academic staff representative (to 30/09/17)
4.1.3 To ensure independence and objectivity none of the Committee’s external members has held executive authority in the University, nor has the staff representative held any managerial position within the University during the reporting period.
4.1.4 The Audit Committee has continued its programme of presentations on major developments and new legislation affecting the University. During 2017-18, presentations were provided as follows: September 2017 Communications and Ms Eleanor Bradford, Head of Reach Communications
November 2017 Accounting for Mr David Beattie, Director of Finance Transnational Initiatives
January 2018 General Data Protection Mr Thomas Pulling from Regulation PricewaterhouseCoopers (PwC)
April 2018 People Strategy Professor Margaret Ross, Vice Principal, People Strategy
May 2018 Qatar Campus Project Professor Richard Wells, Vice Principal, International Partnerships
4.1.5 At the first meeting of 20178-19, the Committee received the following presentation: September 2018 Outcome Agreement with Dr Hulda Sveinsdottir, Director of Planning the Scottish Funding Council
4.2 Internal Audit
4.2.1 Internal audit services in 2017-18 were provided to the University by PricewaterhouseCoopers (PwC). Following a tendering exercise in June 2014, the Audit Committee recommended to the University Court that PwC be appointed for a three-year period from 1 August 2014, with the option to extend the contract for a further two years, subject to satisfactory performance. This was approved at the Court meeting of 1 July 2014. At its meeting in April 2017, the Committee agreed to recommend to Court that its contract with PwC be extended for a two-
Page 1 of 7 Item 11.3a AC_Annual Report_2018.docx - Page 1 of 7 Overall Page 207 of 323 year period with effect from 1 August 2017. This was approved at the Court meeting of 27 June 2017.
4.2.2 Fees for 2017-18 were paid to PwC for a contracted annual fee of £80,000 plus VAT, plus expenses (not to exceed £6,700 per annum), based on a 160-day audit programme. The total fees paid by the University to PwC for internal audit services in the financial year 2017-18 were £104k, including VAT, which included additional audits requested by the University.
4.2.3 At its meeting of 28 September 2017, the Committee approved the draft Internal Audit Risk Assessment and Strategic Plan 2017/18. This was prepared by PwC in accordance with SFC guidance and set out the main areas for review.
4.2.4 Summary Table of Reports Received by the Committee
Committee Meeting Report title Audit Plan Year Report Rating September 2017 Cyber Security 2016-17 High September 2017 Student Support 2016-17 Low Arrangements September 2017 Estates Supplier 2016-17 Low Contract Management November 2017 n/a n/a n/a January 2018 Utilities Management 2017-18 Low January 2018 UKVI 2017-18 Low January 2018 Widening Access 2017-18 Low January 2018 OneSource HR Additional to Plan Post-project review, Payroll ungraded April 2018 Research Project 2017-18 Low Management and Management Information May 2018 Bursaries and 2017-18 Medium Scholarships May 2018 Use of Agents 2017-18 Low May 2018 DRAFT Follow-Up of 2017-18 High Cyber Security September 2018 FINAL Follow-Up of 2017-18 High Cyber Security September 2018 GDPR 2017-18 Medium September 2018 Staff Expenses Additional to Plan High November 2018 Research Data 2017-18 Management
4.2.5 Reports from the 2016-17 programme
At its meeting of 28 September 2017, the Committee received three Internal Audit Reports from the 2016-17 schedule from PwC.
One report, on Cyber Security, was rated High Risk and contained two High Risk findings, one Medium and one Low. This level of rating was reported to be common across the sector, in view of the consequences of a breach of cyber security. The Committee noted that a great deal of progress had been made since the Cyber Maturity Assessment of 2015 and areas of good practice had been identified. The High Risk findings concerned: Vulnerability Management and the need to remove unsupported Operating Systems from the environment, or mitigate the risks incurred; and External Supplier Management, including which third parties were holding data and why. The Medium Risk finding concerned User Education and Awareness: mandatory security training was not tracked or repeated on an annual basis.
Page 2 of 7 Item 11.3a AC_Annual Report_2018.docx - Page 2 of 7 Overall Page 208 of 323 4.2.6 Follow Up Reports
At its meeting of 18 January 2018 the Committee received a Follow Up Report from University management on the implementation status of previous internal audit recommendations. The Committee noted progress and approved proposed revisions to implementation dates for outstanding actions.
In May 2018, the Committee received a further update from the University. It was agreed to sign off the remaining items from 2015-16, which were reported to be largely complete, with the exception of the following two matters:
It was agreed to pick up an outstanding issue in respect of Key Performance Indicators within the 2018 audit of School Planning Processes.
It was agreed to receive an update on the International Centre as a Matter Arising at the first meeting of the 2018-19 session.
The Committee approved the proposed revised implementation dates for items in the 2016-17 schedule and noted that all items due from the 2017-18 schedule were complete.
During 2017-18, PwC carried out one Follow-Up report, on the High Risk Cyber Security review (4.2.5 refers). The Follow Up report was presented to the first Committee meeting in the 2018- 19 session, as detailed at 4.2.8 below.
4.2.7 Reports from the 2017-18 programme
Within the academic year 2017-18, the Audit Committee received eight Internal Reviews from PwC from the 2017-18 schedule, including a draft of the Cyber Security Follow Up report detailed above and one of two previously-approved additions to the 2017/18 Internal Audit Plan, detailed below.
At the end of the academic year 2017-18, nine out of 11 reviews in the 2017-18 plan had been completed. In addition, two other reviews were undertaken on Staff Expenses and a OneSource – Agresso Payroll/HR - Post Project Review. Three of these reports were received at the first meeting of 2018-19. The final review from the 2016-17 Annual Plan, on Trust Governance and Management: Development Trust had been deferred to 2017-18 and was carried forward to 2018-19 at the University’s request. The final review from the 2017-18 schedule, on Research Data Management, was received at the second meeting of 2018-19.
4.2.8 Reports Received at the First Two Meetings of 2018-19
On 29 September 2018, the Committee received two reports from the 2017-18 schedule and an additional review of Staff Expenses, carried out at the request of the University.
The first of these was the final version of a Follow Up Report on Cyber Security. A draft version of this report on the review from 2016-17 (4.2.5 above refers) had been presented to the May 2017 meeting. The Follow Up report was rated High Risk and contained one High, two Medium and one Low Risk recommendations, with one Advisory item. The Audit Partner invited the Committee to note that this was a positive outcome, notwithstanding the High Risk rating. She reported that the University was keeping pace with, or was slightly ahead of the rest of the sector, due to its institution-wide approach to Cyber Security. The Director of Digital and Information Services reported the University’s openness to improvement, as demonstrated by its participation in the Scottish Government’s cyber catalyst scheme, committing to become an exemplar for cyber resilience, helping identify common issues and solutions, and sharing knowledge with the wider public sector.
The additional review of Staff Expenses was also a High Risk report. It contained two High Risk, two Medium Risk and one Low Risk findings. Through the University’s standard monitoring arrangements, a number of unprocessed credit card expenses dating back to 2014 had been identified, all relating to one individual. The University had initiated an investigation and concluded that appropriate procedures were not followed for the use and processing of corporate credit card expenses. The report highlighted the potential risk of control breakdown
Page 3 of 7 Item 11.3a AC_Annual Report_2018.docx - Page 3 of 7 Overall Page 209 of 323 across the institution. An investigation was ongoing as a disciplinary matter relating to the individual concerned. Controls around cash advances had been tightened up, and improvements were being made to policies, procedures, training and awareness, particularly for those responsible for checking expense claims. It was agreed to review the criteria for issue of a corporate credit card, with a view to reducing the number in use.
The Committee received the final report from the 2017-18 schedule, on Research Data Management, at its meeting of 1 November 2018.
4.2.9 Levels of Assurance PwC applies the following levels of assurance when considering the conclusions relating to Internal Audit Reports:
Finding rating Assessment rationale
Critical A finding that could have a: Critical impact on operational performance; or Critical monetary or financial statement impact ;or Critical breach in laws and regulations that could result in material fines or consequences; or Critical impact on the reputation or brand of the organisation which could threaten its future viability.
High A finding that could have a: Significant impact on operational performance; or Significant monetary or financial statement impact; or Significant breach in laws and regulations resulting in significant fines and consequences; or Significant impact on the reputation or brand of the organisation.
Medium A finding that could have a: Moderate impact on operational performance; or Moderate monetary or financial statement impact; or Moderate breach in laws and regulations resulting in fines and consequences ; or Moderate impact on the reputation or brand of the organisation.
Low A finding that could have a: Minor impact on the organisation’s operational performance; or Minor monetary or financial statement impact; or Minor breach in laws and regulations with limited consequences; or Minor impact on the reputation of the organisation.
Advisory A finding that does not have a risk impact but has been raised to highlight areas of inefficiencies or good practice.
The report classification is determined by allocating points to each of the findings included in the report.
Findings rating Points
Critical 40 points per finding
Page 4 of 7 Item 11.3a AC_Annual Report_2018.docx - Page 4 of 7 Overall Page 210 of 323 High 10 points per finding
Medium 3 points per finding
Low 1 point per finding 4.2.10 Report Ratings in 2017-18 Of the ten final reports received from PwC by the Committee within the 2017-18 academic year, one report was rated High risk (4.2.5 refers), as was its Follow-Up, (4.2.8 refers). One report received a Medium risk assurance rating and seven received a Low risk assurance rating. The final report received in the year, additional to the Internal Audit Plan, was a post-project review of the OneSource HR Payroll Project which included observations from the review and not individual findings and recommendations, and was therefore not graded in the usual way.
4.2.11 Acceptance of Recommendations
All internal audit recommendations raised in 2017-18 were accepted by University management and progress towards implementation has been reported in all areas.
4.2.12 Annual Assurance Statements
The Internal Auditors have produced an Annual Report for 2017-18, which has been considered by the Audit Committee, summarising activity against the plan for the year. The report incorporates the Head of Internal Audit's opinion, which ascribes an overall rating for the University as "Generally satisfactory with some improvements required", based on the work undertaken, and taking into account their knowledge of the organisation.
In the opinion of the Audit Committee, the Internal Auditors’ Annual Report is satisfactory.
The Committee, having reviewed the performance of PwC and having scrutinised the scope and effectiveness of its work, can assure the University Court that the work of the Internal Auditors has been satisfactory.
4.3 Fraud and Whistleblowing
4.3.1 Report of Fraud
4.3.2 Reports of Whistleblowing
Page 5 of 7 Item 11.3a AC_Annual Report_2018.docx - Page 5 of 7 Overall Page 211 of 323
4.4 External Audit
4.4.1 The University Court approved the appointment of KPMG as the University’s External Auditor for a period of 3 years, with a possible extension for a further 2 years, subject to satisfactory performance, with effect from 1 January 2010. In May 2012, the Audit Committee recommended to the University Court that it grant KPMG a one-year extension to its contract. This was agreed at the Court meeting of 26 June 2012. In January 2013, the Audit Committee recommended to the University Court that it grant KPMG a further one-year extension to its contract, to 31 December 2014. This was agreed at the Court meeting of 26 March 2013.
4.4.2 Following a tendering exercise under the APUC framework in October 2014, the Committee recommended to the University Court that KPMG be appointed as External Auditors from 1 January 2015, for a period of three years with the option for extension for two further one year periods. This was approved at the Court meeting of 9 December 2014. In December 2017, Court approved the extension of KPMG’s appointment for one year, to 31 December 2018.
4.4.3 Annual Report and Accounts for 2016-17
At the second meeting of 2017-18, on 2 November 2017, the Audit Committee met with the External Auditors to consider the draft Annual Report and Accounts for the University to 31 July 2017 and the Statement of Corporate Governance included therein. The Accounts and Annual Report were approved and reported to Court and the Scottish Funding Council in December 2017.
4.4.4 Annual Report and Accounts for 2017-18
At the second meeting of 2018-19, on 1 November 2018, the Audit Committee met with the External Auditors to consider the draft Annual Report and Accounts for the University to 31 July 2018 and the Statement of Corporate Governance included therein. The Auditor’s Report to the Audit Committee, detailing the main findings and recommendations, was received and due consideration was given to the matters raised.
4.4.5 The Committee noted that all significant audit issues encountered had been resolved prior to the completion of the accounts and that although there were a few outstanding minor matters, none of these was expected to affect the financial statements to any material extent. The Auditors anticipated issuing an unqualified audit opinion in respect of the consolidated accounts.
4.4.6 The Committee also noted that the financial position with regard to subsidiary companies and endowments of the University was reflected in the University’s annual accounts. The cost of external audit services in 2017-18 inclusive of VAT was approximately:
University Group £53k Subsidiaries £2k University Entity £51k
The University also incurred fees of £13k for other assurance services.
4.4.7 Annual Assurance Statement
The Court is assured that the work of the External Auditors was satisfactory.
4.5 Other Sources of Assurance
Page 6 of 7 Item 11.3a AC_Annual Report_2018.docx - Page 6 of 7 Overall Page 212 of 323 The Audit Committee did not receive any additional Assurance reports from external bodies within the present reporting period.
4.6 The Year Ahead
4.6.1 Internal Audit Services
In May 2018, the Audit Committee received an Annual Risk Assessment and indicative Internal Audit Plan for 2018-19 from PwC. The Committee noted that the Plan was based on the three year Audit Needs Assessment received in 2014, but had been updated to reflect the auditor’s growing knowledge of the University and changes in the Higher Education sector overall. In response to feedback from the Committee and University management, the Audit Plan was to be subject to further refinement but was approved in principle. An updated version of the Plan was received and approved at the first meeting of 2018.
4.6.2 External Audit Services
As noted at 4.3.2 above, KPMG was appointed External Auditor with effect from 1 January 2015 for a period of three years, with the option for extension for two further one year periods. A one-year extension was granted by Court in December 2017.
4.6.3 Private Meeting with the Internal and External Auditors
The Audit Committee met privately with the Internal and External Auditors on 1 November 2018, without the presence of University management, as required within the terms of its remit.
4.7 Opinion of the Audit Committee
4.7.1 It is the opinion of the Audit Committee, having carefully considered the assessments presented to it by the Internal and External Auditors to the University, that the University’s internal controls and its financial and management systems are adequate and effective.
4.7.2 The Committee is also satisfied that there has been compliance with SFC guidance, as set out in the Accounts Direction. The Council’s Accounts Direction brings together the provisions of the Financial Memorandum with other formal disclosures that the SFC requires colleges and universities to make in their financial statements or in the associated notes. It is also a condition of the Financial Memorandum that governing bodies comply with the principles of good governance set out in the Scottish Code of Good HE Governance and the Governance and Nominations Committee has reviewed and confirmed adherence to the principles of the Code, with one exception being explained in the Annual Report’s Corporate Governance Statement, this being related to the statutory position of the Rector as Chair.
Page 7 of 7 Item 11.3a AC_Annual Report_2018.docx - Page 7 of 7 Overall Page 213 of 323 11 December 2018
www.pwc.co.uk
University of Aberdeen
Internal audit annual report 2017/2018 October 2018
Item 11.4 Internal Auditors Report.pdf - Page 1 of 14 Overall Page 214 of 323 Back
Contents
Executive summary Summary of findings 1 2
Internal audit work Follow up work conducted conducted 3 4
Appendices 1. Limitations and responsibilities 2. Opinion types 3. Basis of our classifications
Distribution list For action: Audit Committee For information: Senior Management Team, University Management Group
Internal audit annual report 2017/2018 October 2018 PwC Item 11.4 Internal Auditors Report.pdf - Page 2 of 142 Overall Page 215 of 323 Back
Executive summary Summary of findings Internal Audit work Follow up work conducted Appendices conducted
Executive summary
Introduction This report outlines the internal audit work we have carried out for the year ended 31 July 2018. The Financial Memorandum between the Scottish Funding Council and Higher Education Institutions requires that the Head of Internal Audit provides an annual opinion, based upon and limited to the work performed, on the overall adequacy and effectiveness of the University’s framework of governance, risk management and control (i.e. the University’s system of internal control). The report must be presented to the institution’s Audit Committee and a copy sent to the Scottish Funding Council. As such, the purpose of this report is to present our view on the adequacy and effectiveness of: • Governance, risk management and control; and • Economy, efficiency and effectiveness (value for money) arrangements. This is achieved through a risk-based plan of work, agreed with management and approved by the Audit Committee, which should provide a reasonable level of assurance, subject to the inherent limitations described below and set out in Appendix 1. The opinion does not imply that Internal Audit has reviewed all risks relating to the University. The Audit Committee agreed to a level of internal audit input of 160 days, however 163 days were delivered (see page 7 for details). Whilst this report is a key element of the framework designed to inform the statement of corporate governance and internal control, there may be other important sources to which the Audit Committee should look to gain assurance. This report does not override the Audit Committees responsibility for forming their own view on governance, risk management, control and value for money arrangements. Head of internal audit opinion We are satisfied that sufficient internal audit work has been undertaken to allow an opinion to be given as to the adequacy and effectiveness of governance, risk management and control, and economy, efficiency and effectiveness arrangements (value for money). In giving this opinion, it should be noted that assurance can never be absolute. The most that the internal audit service can provide is reasonable assurance that there are no major weaknesses in the system of internal control. Opinion Our opinion is as follows:
Generally satisfactory with some improvements required
Governance, risk management and control, and value for money arrangements in relation to business critical areas is generally satisfactory. However, there are some areas of weakness and non-compliance in the framework of governance, risk management and control and value for money arrangements which potentially put the achievement of objectives at risk. Improvements are required in those areas to enhance the adequacy and effectiveness of the framework of governance, risk management and control and value for money arrangements. Please see our Summary of Findings in Section 2. An explanation of the types of opinion that may be given can be found in Appendix 2.
Internal audit annual report 2017/2018 October 2018 PwC Item 11.4 Internal Auditors Report.pdf - Page 3 of 143 Overall Page 216 of 323 Back
Executive summary Summary of findings Internal Audit work Follow up work conducted Appendices conducted
Executive summary
Basis of opinion Our opinion is based on: • All audits undertaken during the year. • Any follow up action taken in respect of audits from previous periods. The commentary below provides the context for our opinion and together with the opinion should be read in its entirety. Commentary The key factors that contributed to our opinion are summarised as follows: • No reports pertaining to the University’s governance, risk management, control and value for money arrangements have received an overall rating of critical. • No individual findings identified through the internal audit work completed in 2017/18 have been rated as critical. • A high rated finding has been raised in the cyber security follow up review and 2 further high risk findings were raised in the review on staff expenses. The review on employee expenses was completed to address specific concerns raised by the University’s management team and do not represent a pervasive risk across the University. • In the year we have raised 2 high risk, 2 medium risk and 6 low risk reports. • 16 medium rated findings have been raised across 9 of the internal audit reviews completed in the 2017/18 year. Acknowledgement We would like to take this opportunity to thank Ruth MacLure and all the University staff, for their co-operation and assistance provided during the year.
Internal audit annual report 2017/2018 October 2018 PwC Item 11.4 Internal Auditors Report.pdf - Page 4 of 144 Overall Page 217 of 323 Back
Executive summary Summary of findings Internal Audit work Follow up work conducted Appendices conducted
Summary of findings Our annual internal audit report is timed to inform your statement of corporate governance and internal control. A summary of key findings from our programme of internal audit work for the year work is recorded in the table below:
Description Detail Overview • Our work on the 10 internal audit reviews resulted in the identification of 3 high, We completed 10 internal audit reviews and a post project review of the OneSource 16 medium and 12 low risk findings to improve weaknesses in the design of Payroll/HR implementation project. controls and/or operating effectiveness. • No critical rated reports were issued and no critical rated findings raised in the 2017/18 year. Internal control issues • A high risk finding was raised in the cyber security follow up review relating to During the course of our work we did not identify any critical control weaknesses. external supplier management and the need for the University to ensure that every However, we identified a high risk findings relating to cyber that management may third party they engage with has proportionate cyber security controls. wish to consider referring to in the statement of corporate governance and • We also raised 2 high risk findings in the Employee Expenses review which internal control. addressed specific concerns raised by the University’s management team. In the context of the review the overall rating of the report was high as there were specific discrepancies in the expenses claimed but they were not material to the University and do not represent a pervasive risk across the University. Other weaknesses • Our work identified 16 medium and 12 low rated findings in addition to the 3 high Other weaknesses were identified within the organisation’s governance, risk risk findings. These findings were specific to the areas under review and were not management and control. indicative of University-wide issues. Follow up • The 2017/18 Internal Audit Plan included a follow-up review on Cyber Security During the year we have undertaken follow up work on previously agreed actions. (see page 8 for further details). Good practice • 6 of the 10 reviews completed in the year were low risk rated (Utilities We also identified a number of areas where few weaknesses were identified Management, Widening Access, UKVI Compliance, Research Project Management and/or areas of good practice. and MI, Research Data Management and the Use of Agents (Student Recruitment)).
Internal audit annual report 2017/2018 October 2018 PwC Item 11.4 Internal Auditors Report.pdf - Page 5 of 145 Overall Page 218 of 323 Back
Executive summary Summary of findings Internal Audit work Follow up work conducted Appendices conducted
Internal audit work conducted
Introduction The table below sets out the results of our internal audit work for 2017/2018. The following page shows a comparison of planned and actual internal audit activity. Results of individual assignments
Number of findings Review Report classification Critical High Medium Low Utilities Management Low risk - - 1 1 Widening Access Low risk - - 1 1 UKVI compliance Low risk - - 1 3 Research Project Management and MI Low risk - - - 1 Research Data Management Low risk - - 1 1 GDPR Programme Medium risk - - 3 - Development Trust Governance Review has been carried forward by Management and included in the Internal Audit plan for 2018/2019 Bursaries and Scholarships Medium risk - - 4 - Cyber Security – follow up High risk - 1 2 1 Use of Agents (Student Recruitment) Low risk - - 1 3 OneSource – Agresso Payroll/HR - Post Project Review * Final report included observations from the review and not individual findings and recommendations Staff Expenses * High risk - 2 2 1 Total - 3 16 12
* The table highlights one addition (Staff Expenses) and one change (OneSource – Agresso Payroll/HR – Post Project Review) to the 2017/2018 Internal Audit Plan approved by the Audit Committee. The Payroll OneSource review included in the Internal Audit plan was adapted to be a post project review following Management’s decision to cease the implementation of the Agresso Payroll system. The Development Trust Governance review has also been rolled forward and included in the Internal Audit Plan for 2018/19. The changes to the Internal Audit Plan were agreed with members of the Senior Management Team and approved by the Audit Committee.
Internal audit annual report 2017/2018 October 2018 PwC Item 11.4 Internal Auditors Report.pdf - Page 6 of 146 Overall Page 219 of 323 Back
Executive summary Summary of findings Internal Audit work Follow up work conducted Appendices conducted
Internal audit work conducted
Direction of control travel Comparison of planned and actual activity
Finding Trend between Number of findings Audit unit Budgeted days Actual days rating current and prior year 2017/18 2016/17 2015/16 Utilities Management 12 12 Widening Access 12 12 Critical - - - UKVI compliance 13 13 High 3 7 4 Research Project Management and MI 15 14
Medium 16 8 23 Research Data Management 15 18
GDPR Programme 15 17 Low 12 16 16 Development Trust Governance 12 - Total 31 31 43 Bursaries and Scholarships 15 15
Number of IA reviews completed 10 10 12 Cyber Security – follow up 10 12
The overall number of findings raised in 2017/18 is in line with 2016/17 and lower than Use of Agents (Student Recruitment) 12 12 in 2015/16 although 2 less reviews were completed in 2017/18 and 2016/17 compared OneSource – Agresso Payroll/HR - Post with 2015/16. There were no critical rated findings raised in the year and the number 15 15 Project Review high rated findings has fallen from 7 in 2016/17 to 3 in 2017/18. The high risk findings related to the reviews on cyber security and staff expenses which were areas of known Staff Expenses - 9 risk to the Senior Management team. Sub total 146 149
Other IA activity (planning, coordination , 14 14 Audit Committee, contingency)
Total 160 163
Internal audit annual report 2017/2018 October 2018 PwC Item 11.4 Internal Auditors Report.pdf - Page 7 of 147 Overall Page 220 of 323 Back
Executive summary Summary of findings Internal Audit work Follow up work conducted Appendices conducted
Follow up work conducted
Introduction In order for the organisation to derive maximum benefit from internal audit, agreed actions should be implemented. Management actively tracks progress against the open management actions arising from our Internal Audit work. It has been agreed with the Audit Committee and Management that Internal Audit will perform follow-up on all critical and high rated findings. The 2017/18 Internal Audit Plan included a follow-up review on Cyber Security and there were 7 high risk findings raised in the 2016/17 year as follows: • Procurement Strategy and Tendering (1 high risk finding) • Key Financial Processes: Payroll in OneSource (1 high risk finding) • Cyber Security (2 high risk findings) • Staff Expenses (3 high risk findings)
Results of follow up work • Procurement Strategy and Tendering - The high rated finding in this report related to the procurement policy which was out of date and required to be updated. The updated policy was approved in June 2018 and a review of the implementation of the new policy has been included in the Internal Audit Plan for 2018/19. • Key Financial Processes: Payroll in OneSource – A high risk finding was raised as there was no reconciliation to understand the large number of differences that were identified between the General Ledger (GL) posting from Agresso and the GL posting from Northgate. As the Agresso Payroll implementation was ceased no follow up of this finding has been undertaken. • Cyber Security – a full follow up review of the cyber security arrangements has been completed as part of the 2017/18 Internal Audit Plan. The final report was presented to the Audit Committee in September 2018 and included 1 high, 2 medium and 1 low risk findings. • Staff Expenses –The 2016/17 Employee Expenses review completed in March 2017 addressed specific concerns raised by the University’s management team. In the context of the review the overall rating of the report was high as there were specific findings identifying discrepancies in the expenses claimed but they were not material to the University and did not represent a pervasive risk across the University’s expenses system. The individual findings and recommendations raised in the report were closed out through internal investigation completed by the University and hence were not followed up by internal audit.
Internal audit annual report 2017/2018 October 2018 PwC Item 11.4 Internal Auditors Report.pdf - Page 8 of 148 Overall Page 221 of 323 Appendix 1: Limitations Appendix 2: Opinion types Appendix 3: Basis of our and responsibilities classifications Appendices
Internal audit annual report 2017/2018 October 2018 PwC Item 11.4 Internal Auditors Report.pdf - Page 9 of 149 Overall Page 222 of 323 Back
Appendix 1: Limitations Appendix 2: Opinion types Appendix 3: Basis of our and responsibilities classifications
Appendix 1: Limitations and responsibilities
Limitations inherent to the internal auditor’s work Responsibilities of management and internal auditors Our work has been performed subject to the limitations outlined below. It is management’s responsibility to develop and maintain sound systems of risk management, internal control and governance and for the prevention and detection of Opinion irregularities and fraud. Internal audit work should not be seen as a substitute for The opinion is based solely on the work undertaken as part of the agreed internal audit management’s responsibilities for the design and operation of these systems. plan. There might be weaknesses in the system of internal control that we are not We endeavour to plan our work so that we have a reasonable expectation of detecting aware of because they did not form part of our programme of work, were excluded from significant control weaknesses and, if detected, we shall carry out additional work the scope of individual internal audit assignments or were not brought to our attention. directed towards identification of consequent fraud or other irregularities. However, As a consequence management and the Audit Committee should be aware that our internal audit procedures alone, even when carried out with due professional care, do opinion may have differed if our programme of work or scope for individual reviews not guarantee that fraud will be detected, and our examinations as internal auditors was extended or other relevant matters were brought to our attention. should not be relied upon to disclose all fraud, defalcations or other irregularities Internal control which may exist. Internal control systems, no matter how well designed and operated, are affected by inherent limitations. These include the possibility of poor judgment in decision-making, human error, control processes being deliberately circumvented by employees and others, management overriding controls and the occurrence of unforeseeable circumstances. Future periods Our assessment of controls relating to the University of Aberdeen is for the period 1 August 2017 to 31 July 2018. Historic evaluation of effectiveness may not be relevant to future periods due to the risk that: • The design of controls may become inadequate because of changes in operating environment, law, regulation or other; or • The degree of compliance with policies and procedures may deteriorate. The specific time period for each individual internal audit is recorded within section 3 of this report.
Internal audit annual report 2017/2018 October 2018 PwC Item 11.4 Internal Auditors Report.pdf - Page 10 of 1014 Overall Page 223 of 323 Back
Appendix 1: Limitations Appendix 2: Opinion types Appendix 3: Basis of our and responsibilities classifications
Appendix 2: Opinion types
The table below sets out the four types of opinion that we use, along with an indication of the types of findings that may determine the opinion given. The Head of Internal Audit will apply her judgement when determining the appropriate opinion so the guide given below is indicative rather than definitive.
Type of opinion Indication of when this type of opinion may be given Satisfactory • A limited number of medium risk rated weaknesses may have been identified, but generally only low risk rated weaknesses have been found in individual assignments; and • None of the individual assignment reports have an overall report classification of either high or critical risk. Generally • Medium risk rated weaknesses identified in individual assignments that are not significant in aggregate to the system of satisfactory with internal control; and/or some improvements • High risk rated weaknesses identified in individual assignments that are isolated to specific systems or processes; and required • None of the individual assignment reports have an overall classification of critical risk. Major improvement • Medium risk rated weaknesses identified in individual assignments that are significant in aggregate but discrete parts of the system of required internal control remain unaffected; and/or • High risk rated weaknesses identified in individual assignments that are significant in aggregate but discrete parts of the system of internal control remain unaffected; and/or • Critical risk rated weaknesses identified in individual assignments that are not pervasive to the system of internal control; and • A minority of the individual assignment reports may have an overall report classification of either high or critical risk. Unsatisfactory • High risk rated weaknesses identified in individual assignments that in aggregate are pervasive to the system of internal control; and/or • Critical risk rated weaknesses identified in individual assignments that are pervasive to the system of internal control; and/or • More than a minority of the individual assignment reports have an overall report classification of either high or critical risk. Disclaimer opinion • An opinion cannot be issued because insufficient internal audit work has been completed. This may be due to either: - Restrictions in the audit programme agreed with the Audit Committee, which meant that our planned work would not allow us to gather sufficient evidence to conclude on the adequacy and effectiveness of governance, risk management and control; or - We were unable to complete enough reviews and gather sufficient information to conclude on the adequacy and effectiveness of arrangements for governance, risk management and control.
Internal audit annual report 2017/2018 October 2018 PwC Item 11.4 Internal Auditors Report.pdf - Page 11 of 1114 Overall Page 224 of 323 Back
Appendix 1: Limitations Appendix 2: Opinion types Appendix 3: Basis of our and responsibilities classifications
Appendix 3: Basis of our classifications
Report classifications The report classification is determined by allocating points to each of the findings included in the report.
Findings rating Points
Critical 40 points per finding
High 10 points per finding
Medium 3 points per finding
Low 1 point per finding
Report classification Points
Critical risk 40 points and over
High risk 16–39 points
Medium risk 7–15 points
Low risk 6 points or less
Internal audit annual report 2017/2018 October 2018 PwC Item 11.4 Internal Auditors Report.pdf - Page 12 of 1214 Overall Page 225 of 323 Back
Appendix 1: Limitations Appendix 2: Opinion types Appendix 3: Basis of our and responsibilities classifications
Appendix 3: Basis of our classifications
Individual finding ratings Engagement teams should tailor the ‘assessment rationale’ section below based previous discussions with management and the relevant committee e.g. Audit Committee.
Finding rating Assessment rationale
Critical A finding that could have a: Critical impact on operational performance; or Critical monetary or financial statement impact; or Critical breach in laws and regulations that could result in material fines or consequences; or Critical impact on the reputation or brand of the organisation which could threaten its future viability.
High A finding that could have a: Significant impact on operational performance; or Significant monetary or financial statement impact; or Significant breach in laws and regulations resulting in significant fines and consequences; or Significant impact on the reputation or brand of the organisation.
Medium A finding that could have a: Moderate impact on operational performance; or Moderate monetary or financial statement impact; or Moderate breach in laws and regulations resulting in fines and consequences; or Moderate impact on the reputation or brand of the organisation.
Low A finding that could have a: Minor impact on the organisation’s operational performance; or Minor monetary or financial statement impact; or Minor breach in laws and regulations with limited consequences; or Minor impact on the reputation of the organisation.
Advisory A finding that does not have a risk impact but has been raised to highlight areas of inefficiencies or good practice.
Internal audit annual report 2017/2018 October 2018 PwC Item 11.4 Internal Auditors Report.pdf - Page 13 of 1314 Overall Page 226 of 323 This document has been prepared only for The University of Aberdeen and solely for the purpose and on the terms agreed with The University of Aberdeen in our agreement dated 14 September 2014. We accept no liability (including for negligence) to anyone else in connection with this document, and it may not be provided to anyone else. Internal audit work was performed in accordance with PwC's Internal Audit methodology which is aligned to Institute of Internal Auditors International Standards for the Professional Practice of Internal Auditing. As a result, our work and deliverables are not designed or intended to comply with the International Auditing and Assurance Standards Board (IAASB), International Framework for Assurance Engagements (IFAE) and International Standard on Assurance Engagements (ISAE) 3000. If you receive a request under freedom of information legislation to disclose any information we provided to you, you will consult with us promptly before any disclosure. © 2018 PricewaterhouseCoopers LLP. All rights reserved. In this document, "PwC" refers to PricewaterhouseCoopers LLP (a limited liability partnership in the United Kingdom), which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. Please see www.pwc.com/structure for further details. 160421-143458-JS-OS Item 11.4 Internal Auditors Report.pdf - Page 14 of 14 Overall Page 227 of 323 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
UPDATE ON UNIVERSITIES SUPERANNUATION SCHEME (USS)
1. PURPOSE OF THE PAPER
1.1 The USS scheme is a national, multi-employer hybrid pension scheme providing defined benefit and defined contribution benefits to our academic and academic related staff.
1.2 This paper provides an update on the 31 March 2017 valuation, the position following the report of the Joint Expert Panel (JEP) and the intention of USS to carry out a further valuation exercise.
2. RECOMMENDED ACTION
2.1 This paper is provided for information.
3. DISCUSSION
3.1. USS PENSION SCHEME VALUATION AND PROPOSALS
3.1.1. The USS pension scheme is a national, multi-employer scheme for our academic and academic related staff. With effect from October 2016, the scheme changed from a defined benefit only pension scheme to a hybrid scheme, providing career average defined benefits to all members, up to a salary cap of £57,216.50 and defined contribution benefits for earnings in excess of this level.
3.1.2. The 31 March 2017 valuation deficit has increased from £5.3bn to £7.5bn, and as a result maintaining pension benefits at current levels would require a significant increase in both employer and employee contributions.
3.1.3. Assuming that no changes can be agreed by April 2019, USS entered into a consultation period with members regarding the implementation of cost sharing to increase the contributions and other proposed changes as follows:
Current 1 April 2019 1 October 2019 1 April 2020 Employer 18% 19.5% 22.5% 24.9% Employee 8% 8.8% 10.4% 11.7%
Current defined benefits to remain the same, but contributions required to fund them to increase 8% of member contributions from salary above the defined benefit threshold (2018/19: £57,216.50) to continue to be saved in the USS Investment Builder, with the excess of these member contributions supporting defined benefits in the USS Retirement Income Builder Employers’ contributions to the USS Investment Builder on salary above the threshold to remain at 12% The 1% employer match into the USS Investment Builder to be discontinued from 1 April 2019.
3.1.4. The move to the employer contribution rate of 24.9% would cost the University approximately £5m p.a. The phased increase would result in the following increased costs for the period 2018/19 to 2020/21.
Page 1 of 3 Item 11.6 USS Update.docx - Page 1 of 3 Overall Page 237 of 323 Financial Year £m 2018/19 0.3 2019/20 3.5 2020/21 5.1
3.1.5. Although the University has provided a level of contingency within budgets, using a significant part of this to fund pension increases would inhibit the ability to develop new opportunities or to meet any other financial challenges during this period.
3.1.6. Agreement was also reached that a Joint Expert Panel (JEP) would be formed to consider the 2017 valuation, and the UCU’s planned strike and further industrial action was suspended. The Panel’s task is to agree key principles to underpin the future joint approach of UUK and UCU to the USS valuation.
3.1.7. The Panel’s first report was issued in September 2018 and considered the valuation process, assumptions, methodology and associated tests. It considered questions raised by some USS members and employers about the 2017 valuation process proposal for USS benefit reform (which was put forward by the Joint Negotiating Committee (JNC) with an expected implementation date of 1 April 2019).
3.1.8. The JEP has produced a number of recommendations which are detailed in Appendix 1. Should all of these be incorporated into the valuation, the total (employer and employee) contribution levels, using the JEP’s calculations, would reduce from 36.1% (currently 26%) to 29.2%. As a result, the indicative employer contribution would be 20.1% (currently 18%) of salary, with member contributions at 9.1% of salary. The calculations will require confirmation by the scheme actuary and the USS Trustee.
3.1.9. The University broadly welcomes the recommendations of the JEP, however an increase in employer contributions of 2.1% would cost approximately £1.6m p.a. The University wishes to reiterate its position from previous consultations: that the current 18% contribution is the maximum that can be afforded.
3.1.10. A consultation on the JEP recommendations has been held by UUK and USS’s participating employers. The result on this consultation is enclosed at Appendix 2 and the vast majority of employers that responded to the consultation are supportive of the JEP’s recommendations and therefore wish to see a change in valuation assumptions in line with that put forward. There are however conditions attached to this support, in particular the recognition that it is subject to acceptance by the USS trustee (and the Pensions Regulator, as appropriate) and the need for further information on what (if any) requirements there may be from the USS trustee to back any additional risk which is associated with the JEP’s recommendations.
3.1.11. However, in an unexpected move, USS has resolved to conduct an unscheduled valuation of the scheme as of 31 March 2018. The proposed April 2019 contributions increase will still go ahead, but it is hoped that the October 2019 increase - planned to be much greater - will be avoided.
4. FURTHER INFORMATION
4.1 Further information is available from David Beattie, Director of Finance ([email protected]).
[02/11/18] [version 1] [Open]
Page 2 of 3 Item 11.6 USS Update.docx - Page 2 of 3 Overall Page 238 of 323 APPENDIX 1 – SUMMARY OF JEP RECOMMENDATIONS
JEP Recommendation Summarised UUK Comments A revaluation of the of the employer’s attitude In September 2017 UUK expressed to the USS Trustee the to risk. view that the level of risk was at the upper limit of acceptability for employers, recognising that a significant minority also took the view that a lower level of risk would be preferred. The USS Trustee based on UUK’s feedback and considering the views of their advisors and of the Pensions Regulator, took a more prudent approach.
For the USS Trustee to revisit its response to this consultation, it may require firmer or more tangible support from employers and further formal consultation.
Adopting a greater consistency of approach UUK has consistently made clear to the USS Trustee that it between the 2014 and 2017 valuations, which does not believe the case has been made for an increase affects the scale and timing of deficit recovery in deficit recovery contributions, and a formal contributions. (Retain the deficit recovery consultation on this has not been undertaken. UUK contribution at 2.1% at present) remains supportive of maintaining deficit recovery payments as per the JEP’s recommendations. Employers are asked to restate their support for this position.
Ensuring fairness and equality between This is a potential adjustment of the USS Trustee generations of scheme members by smoothing approach recommended by the JEP. Overall it results in future service contributions. lower contributions and could be helpful as a means to help finalise the 2017 valuation.
Ensuring that the valuation uses the most We believe it would be reasonable to regard this as not recently available information by taking exposing employers to additional risk and simply a account of recent market improvements, new refinement for new data. investment considerations and the latest data on mortality.
Under the rules of USS the USS Trustee must make any decisions relating to the valuation assumptions having taken advice from the scheme actuary and having consulted with UUK. The JNC’s role is to decide on ways to apportion the costs and/or make adjustments to benefits. This means that the JEP’s report is advisory.
Page 3 of 3 Item 11.6 USS Update.docx - Page 3 of 3 Overall Page 239 of 323 UNIVERSITIES UK CONSULTATION WITH USS EMPLOYERS ON THE RECOMMENDATIONS OF THE JOINT EXPERT PANEL
ANALYSIS OF RESPONSES
November 2018
www.ussemployers.org.uk
@USSEmployers
Item 11.6a UUK-JEP-consultation-responses-analysis.pdf - Page 1 of 10 Overall Page 240 of 323 Contents
EXECUTIVE SUMMARY 02
BACKGROUND 02
HEADLINE RESPONSE RATE 03
THE QUESTIONS 03
HOW UNIVERSITIES UK HAS ANALYSED THE RESULTS 04
RESPONSES 04
CONCLUSION 08
1 Item 11.6a UUK-JEP-consultation-responses-analysis.pdf - Page 2 of 10 Overall Page 241 of 323 Executive summary
Universities UK’s (UUK) consultation with employers on the recommendations of the Joint Expert Panel (JEP) received 127 responses, representing 94% of the scheme’s active membership. The responses to the consultation are essential for UUK; they are the foundation upon which UUK’s overall mandate is based and which will be taken forward with the scheme’s stakeholders over the coming months.
The responses show that the vast majority of employers which responded are generally supportive of the JEP’s recommendations. However, a large number of employers – accounting for over half the scheme’s active membership – expressed important conditions and caveats to their support. The additional conditions and caveats are explained later in this paper. It should be recognised that the conditions expressed by employers are additional to the caveat which UUK embedded in question 1, which is that any position of employers is subject to the acceptance of the USS Trustee (and The Pensions Regulator as appropriate) and of any implications arising therefrom.
Background
On 24 September UUK launched a consultation with Universities Superannuation Scheme (USS) employers, to invite their views on the recommendations proposed by the JEP. The consultation closed on 30 October.
During the consultation period, UUK endeavoured to ensure that employers had ample opportunities to ask questions on the specifics of the panel’s recommendations, and published Q&A documents to answer these as well as holding webinar events – the slides of which were published on the USS Employers website.
Alongside this, a short guide to the Joint Expert Panel’s recommendations was published and circulated to employers, which set out each of the recommendations and the indicative impact they might have if adopted into the 2017 valuation.
127 employers – accounting for 94% of the active USS membership – responded to the consultation. The responses show that the vast majority of employers which responded are generally supportive of the JEP’s recommendations. However, many employers expressed important additional conditions and caveats to their support.
This briefing sets out a high-level summary of the responses to each question set out in the consultation document, including a statistical breakdown, and gives details of the further analysis considered by UUK.
2 Item 11.6a UUK-JEP-consultation-responses-analysis.pdf - Page 3 of 10 Overall Page 242 of 323 Headline response rate
Overall 127 employers (37% of the total number of USS participating employers), which account for 94% of current active members in the scheme, provided a response to the consultation. Some employers (36) responded to confirm that they would not be providing a response, with a further 183 choosing not to respond. Most of the employers that did not respond have very small numbers of active scheme members.
Number of By share of active employers membership
Employers that provided a response to UUK’s 127 (37%) 94% consultation Employers that indicated they will not be responding 36 (10) <1% Employers that did not respond 183 (53%) 6%
Consultation responses by share of total active scheme membership
Employers that provided a response to UUK’s <1% consultation Employers that indicated they 94% 6% will not be responding
Employers that did not respond
Figure 1: Consultation responses by share of total active scheme membership
The questions
The consultation document set out three questions for employers as follows:
1. Would your institution support the JEP recommendations regarding the 2017 valuation in overall terms, subject to the acceptance of such a position from the USS Trustee (and TPR as appropriate)? 2. What further information would you need to provide a final view for question 1?
3 Item 11.6a UUK-JEP-consultation-responses-analysis.pdf - Page 4 of 10 Overall Page 243 of 323 3. Employers currently pay 18% towards the USS scheme, and the mandate agreed immediately following the Acas discussions was 19.3%. If the recommendations of the JEP were accepted in full by all parties, the outcome would be that existing benefits – minus the employer match of 1% – could be provided at an indicative employer contribution of 20.1% of salary (with a member contribution of 9.1%). a. Would you accept employer contributions at that level? b. If not, what balance of additional risk, higher contributions and/or benefit change would you prefer to see as an outcome?
How Universities UK has analysed the results
Employer responses varied between simple ‘yes’ answers and detailed paragraphs. Responses have been categorised and analysed, as shown in the results below.
The headline analysis considers the number of employers and the share of active membership that gave certain responses to the questions.
Further analysis was also undertaken to look at the following:
• The responses split between large and small employers, and between employers that have greater or less than 20% of their staff in USS.
• The net asset position of the employers that gave particular responses.
• The cashflow position of the employers that gave particular responses.
The further analysis supported the conclusions reached in the headline analysis: employers expressing conditional acceptance hold a larger proportion of the sector’s net assets compared to those expressing clear support. This underlines the importance of the conditions and caveats attached to employers’ acceptance of questions 1 and 3, which are explored below.
Responses
Question 1
Question 1 asked: Would your institution support the JEP recommendations regarding the 2017 valuation, in overall terms, subject to the acceptance of such a position from the USS Trustee (and TPR as appropriate)?
The responses to this question have been categorised as:
• expressed clear support
• expressed conditional support
• not expressed support
• not expressed a view Note that employers expressing support of the position subject to acceptance by the USS Trustee and The Pensions Regulator are categorised as ‘expressed clear support’, since that caveat was included in the question itself. 4 Item 11.6a UUK-JEP-consultation-responses-analysis.pdf - Page 5 of 10 Overall Page 244 of 323 Number of employers By share of (% of total active respondents) membership Responses to Q1 Total employers expressing support for recommendations 118 (93%) 92% Employers expressing clear support 74 (58%) 42% Employers expressing conditional support 44 (35%) 50% Employers which have not expressed support 4 (3%) <1% Employers not expressing a view 5 (4%) 2% Employers that did not respond to consultation 219 6%
Employer responses to question 1 by share of total active scheme membership 60%
50% 50%
42% 40%
30%
20%
10% 6% 2% <1% 0% Employers expressing Employers expressing Employers that did not Employers not expressing Employers that have not conditional support clear support respond to consultation a view expressed support
Figure 2: Employer responses to question 1 by share of total active scheme membership
In response to question 1, 118 employers accounting for 92% of the total active membership in the scheme expressed support for the JEP’s recommendations regarding the 2017 valuation. Of these, 44 employers (representing 50% of the active membership) indicated that their support for the recommendations was conditional on a range of caveats, including:
• the JEP undertaking a second phase to inform further work to ensure long-term stability and sustainability of the scheme
• highlighting concerns regarding any requirements around any additional obligations placed upon employers (eg trigger contributions, guarantees, asset security etc)
• further information being provided (eg implications of more risk being taken in the valuation)
5 Item 11.6a UUK-JEP-consultation-responses-analysis.pdf - Page 6 of 10 Overall Page 245 of 323 Question 2
Question 2 asked: What further information would you need to provide a final view for question 1?
Out of 127 respondents, 68 employers set out a substantive answer to question 2.
While the answers covered a range of topics, including covenant, investment strategy, member reaction, sharing costs with members, Test 1 and UUK’s approach to consultations, there are four consistent themes that emerged:
• employers would like to have a better understanding of risk
• employers want to understand the backing for risk that the USS Trustee may demand
• employers want to know the views of the USS Trustee and The Pensions Regulator
Question 3
Question 3 was asked in two parts, and was prefaced the following information: Employers currently pay 18% towards the USS scheme, and the mandate agreed immediately following the Acas discussions was 19.3%. If the recommendations of the JEP were accepted in full by all parties, the outcome would be that existing benefits – minus the employer match of 1% – could be provided at an indicative employer contribution of 20.1% of salary (with a member contribution of 9.1%)
(a) Would you accept employer contributions at that level?
In response to question 3a, 116 employers – accounting for 90% of total active membership in the scheme – said they would accept indicative employer contribution levels at 20.1%.
However, a significant proportion – 40 employers, accounting for 43% of total active membership in the scheme – indicated that this acceptance was conditional on the increased contributions not being taken as a long-term solution, and on further work being undertaken to find a long-term sustainable solution.
Number of employers By share of (% of total active respondents) membership Responses to Q3a Total employers expressing acceptance 116 (91%) 90% Employers that expressed clear acceptance 76 (60%) 47% Employers that expressed conditional acceptance 40 (31%) 43% Employers which have expressed clear opposition 6 (5%) 3% Employers that were undecided 1 (1%) <1% Employers not expressing a view 4 (3%) 1% Employers that did not respond to consultation 219 6%
6 Item 11.6a UUK-JEP-consultation-responses-analysis.pdf - Page 7 of 10 Overall Page 246 of 323 Employer responses to question 3a by share of total active scheme membership
50% 47%
45% 43%
40%
35%
30%
25%
20%
15%
10% 6% 5% 3% 1% <1% 0% Employers that Employers Employers that did Employers which Employers not Employers that were expressed clear expressing not respond to have expressed clear expressing a view undecided acceptance conditional consultation opposition acceptance
Figure 3: Employer responses to question 3a by share of total active scheme membership
Analysis of responses to question 3a also identified a number of common themes in relation to the overall acceptance of a higher level of contributions. Some employers noted the following points:
• that 20.1% is at the absolute upper limit of affordability for the employer
• that accepting a higher contribution rate of 20.1% would have significant implications for activity (eg staffing, student experience, capital investment etc)
• that acceptance of 20.1% was preferred over even higher contribution rates resulting from rule 76
(b) If not, what balance of additional risk, higher contributions and/or benefit change would you prefer to see as an outcome?
The responses to question 3b covered a range of areas, including:
• risk sharing with members
• reforming the scheme to provide more options for members
• concerns over the impact of higher member contribution rates and the potential for increased opt-outs from the scheme
• risk tolerance of employers
• a need for JEP phase 2 to consider the longer-term balance between contributions, risk and benefits
7 Item 11.6a UUK-JEP-consultation-responses-analysis.pdf - Page 8 of 10 Overall Page 247 of 323 Conclusion
Overall, the analysis reveals a high response rate to the consultation, with responses received from employers accounting for 94% of the active membership. The responses show support from most employers for the recommendations of the Joint Expert Panel.
It should be noted, however, that there are significant conditions attached to this support, and importantly is entirely subject to acceptance of the position put forward by the JEP from the USS Trustee (and The Pensions Regulator as appropriate) and the need for further information on any implications for employers of such acceptance.
The responses also reveal that many employers regard a longer-term review of USS as essential – supported by a second phase of a JEP – and are only prepared to accept the JEP recommendations on this basis.
Universities UK looks forward to taking the views expressed by employers to the consultation into discussions with UCU, and with the USS Trustee, over the coming weeks with the continued aim of achieving a jointly agreed solution.
8 Item 11.6a UUK-JEP-consultation-responses-analysis.pdf - Page 9 of 10 Overall Page 248 of 323 www.ussemployers.org.uk
@USSEmployers
Item 11.6a UUK-JEP-consultation-responses-analysis.pdf - Page 10 of 10 Overall Page 249 of 323 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
OPERATING BOARD REPORT
1. PURPOSE OF THE PAPER
1.1 The Operating Board met on 13 November 2018. The agenda, papers and draft minutes of that meeting are available at the Court Intranet for members of Court. https://365abdn.sharepoint.com/sites/court_intranet/SitePages/Future.aspx
1.2 There are no items considered by the Board requiring Court approval, other than the Risk Management Update which is provided as a separate item on today’s agenda. Court is invited to note that Operating Board agreed that, with effect from January 2019, the number of its meetings would be reduced to four per annum, to align with Court, with the option to convene additional meetings by teleconference as and when required. Court will also receive updates on the Korea Campus and Student Admissions, both of which were key items of business discussed by the Operating Board.
1.3 This paper is provided for information.
2 RECOMMENDED ACTION
2.1 Court is invited to note the report of Operating Board business.
3. FURTHER INFORMATION
3.1 Further information is available from Ruth MacLure, Clerk to the Operating Board, [email protected], 01224 273239
27/11/18 FOI Status: Open
Page 1 of 1 Item 13 Operating Board Report.docx - Page 1 of 1 Overall Page 267 of 323 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
GOVERNANCE AND NOMINATIONS COMMITTEE REPORT
1. PURPOSE OF THE PAPER
1.1 The Governance and Nominations Committee met on 12 November 2018 and on 22 November 2018. The business considered at the meeting of 22 November is reported separately on today’s agenda. This report focuses on matters requiring approval by Court from the meeting of 12 November 2018. These are:
1) The appointment of two alternate independent members to the Governance and Nominations Committee; 2) The approval of re-appointment of two external members of the Audit Committee; 3) Amendments to the Standing Orders of Court (Appendix 1).
1.2 The agenda, papers and draft minutes of the meeting of 12 November are available at the Court Intranet for members of Court: https://365abdn.sharepoint.com/sites/court_intranet/SitePages/Future.aspx:
2 RECOMMENDED ACTION
2.1 The Court is invited to approve the following:
1) The appointment of two independent members to the Governance and Nominations Committee as alternate members; 2) The reappointment of two external members of the Audit Committee with effect from 1 January 2019; 3) Amendments to the Standing Orders of Court in principle, to be formally adopted by Court at its next meeting in line with the requirements for changes to standing orders.
3. MEMBERSHIP AND GENDER BALANCE OF THE COMMITTEE 3.1 The Committee recommends to Court the appointment of Mr Steyn as an alternate member to Mr Gilbert, and of Mrs McPhail as an alternate member to Mr Hall. The Committee also agreed that Mr Steyn be appointed as Interim Convener of the Committee to chair the appointment process of the Senior Governor. This is reported separately to Court as part of the item on the Appointment of Senior Governor. 3.2 The Committee noted that there was gender balance across its independent membership (excluding the position of Convener) and that the membership of the Principal was on an ex officio basis. The non-Senate Staff member of the Committee, Dr Mills, suggested that as the intention had been to share the role with Mrs Fernandes across their respective three year terms of office on Court, Mrs Fernandes could be invited to take on the role earlier to improve the gender balance of the Committee. The overall gender balance is now: six male, three female. The student member, Mr Ogubie and Senate member, Professor Schaper, on the Committee were asked to engage with their respective constituencies with regard to the issue.
4. AUDIT COMMITTEE MEMBERSHIP AND REAPPOINTMENT OF EXTERNAL MEMBERS 4.1 The Committee approved a recommendation to Court to reappoint Mrs Macfarlan and Mr Milne as external members of the Audit Committee, following the conclusion of their first period of office on 31 December 2018. 4.2 The Committee received an update on the vacancies for the position of Convener of Audit Committee and for a further independent member of Court on the Audit Committee, and
Page 1 of 2 Item 14.1 G&NReporttoCourt.docx - Page 1 of 2 Overall Page 268 of 323 confirmed that this skill set should be prioritised in the recruitment of new independent members of Court.
5. AMENDMENTS TO COURT’S STANDING ORDERS 5.1 The Committee noted that, at the Court meeting in October, queries had been received from two members regarding proposed amendments to the Standing Orders of Court and it had been agreed that the Governance & Nominations Committee should consider these further before being re-presented to Court. The Convener reported that he had engaged with the members concerned and sought to clarify the context and intent of the amendments that had given rise to the queries. The members had, however, proposed alternative wordings regarding the amendment of Standing Order II and the proposed introduction of Standing Order XI, which the Committee was invited to consider. 5.2 In discussion, it was suggested that the alternative wording of the amendment of Standing Order XI that had been referred to the Committee was substantively different and not consistent with common corporate governance practice. The Committee also discussed the particular responsibilities of the Secretary to Court to the governing body, as articulated in the Scottish Code of Good HE Governance, which the wording of Standing Order XI, as first proposed, reflected. It was also confirmed that the wording of the changes to Standing Orders previously agreed by the Committee were consistent with those used by other Scottish universities. 5.3 The Committee after consideration, agreed to recommend to Court the amendment of Standing Order II and the introduction of Standing Order XI using the wording it had previously recommended.
5.4 A change to Standing Orders must be notified to Court at one meeting and may not be formally approved and adopted until the subsequent meeting (in this case March 2019). The Court is, however, asked to approve the changes in principle at this time.
6 FURTHER INFORMATION
6.1 Further information is available from Bruce Purdon, Clerk to the Committee (tel: (01224) 273949 or email [email protected]).
23 November 2018 v1 FOI Status: Open
Page 2 of 2 Item 14.1 G&NReporttoCourt.docx - Page 2 of 2 Overall Page 269 of 323 Appendix 1
APPENDIX 1: STANDING ORDERS OF THE UNIVERSITY COURT
I The Court shall meet no fewer than four times each academic year, the schedule of meetings to be determined by the Court, annually, in advance.
In cases of urgency, additional meetings may be called at the instance of the Rector or the Principal, or the Senior Governor, whom failing the longest serving member of Court available.
II Any member of the Court may have an item included in a programme of business provided this is notified to the Secretary to the Court at least 10 working days prior to the date of the meeting, which shall be drawn up by the Secretary to the Court and shall be circulated among the members along with the notice calling the meeting. Items of business not included in the agenda may be considered with the consent of the meeting.
III Seven members of the Court shall be a quorum. (Universities (Scotland) Act, 1889, Section 5(1)).
IV At every ordinary meeting of the Court the first business shall normally be the approval of the minutes of the previous meeting or meetings of the Court. No discussion shall be allowed upon the minutes, except as to their correctness. The approved minutes will be signed by the Chair of the meeting.
V All motions and amendments must be seconded, and except formal motions (such as a motion for adjournment), shall be provided to the Secretary in writing. Motions or amendments made but not seconded shall not be discussed, but a record thereof shall be entered in the minutes, if desired by their proposers.
VI No member of the Court shall be entitled to propose a motion, other than one directly arising from the discussion of a subject before the Court, unless notice of such motion has been given at a previous meeting, except with the consent of a majority of the members present.
VII Any member taking part in a vote may, at the same meeting, enter his/her dissent from the resolution adopted, and may, either at that or at the next meeting, give in writing reasons of dissent to be recorded in minutes; but no member who has not proposed a motion or recorded a vote on the matter under discussion shall be entitled to enter his/her dissent from a resolution of the Court.
VIII After a motion or amendment has been made and seconded it shall not be withdrawn, or altered in substance, except by leave of the meeting.
IX When only one amendment is made upon a motion, the vote shall be taken between the motion and the amendment. When there is more than one amendment, the amendment last proposed shall be put against that immediately preceding, and then the one which is carried shall be put against the next preceding, and so on until there remains only one amendment, between which and the original motion the vote shall be taken. When the vote between these is taken, the motion or amendment carried shall be put as a substantive resolution without further discussion. All amendments must be relevant to the motion, and no member shall move more than one amendment upon any motion.
X A decision of the Court will continue to be operative and binding until the Court agrees to rescind or vary that decision.
XI The business of Court will normally be open for discussion by all members of Court. In some very exceptional circumstances business may require to be designated as ‘reserved’. The Senior Governor, in consultation with the Secretary (or where it is a matter relating to the Secretary in consultation with the Principal), will determine when an item of business requires to be designated as reserved and the members of Court who are permitted to access the related information and participate in its discussion. Items of business that might require to be
Page 1 of 2
Item 14.1a App 1 G&N DraftforCourtStandingOrders.docx - Page 1 of 2 Overall Page 270 of 323 designated as reserved would normally include, but are not exclusive to, matters relating to an individual member of staff’s employment or matters that are commercially sensitive.
XII On the recommendation of the Governance & Nominations Committee, membership of Committees shall be approved, normally at the first meeting of the Court in each academic year, members to hold office for one year from the following 1 October or for such other period as may be determined by Court. A casual vacancy may be filled at any time, the person elected to hold office for the remainder of that period. The Court may delegate to any Standing Committee power to deal on the Court's behalf with any matter within the Committee's terms of reference.
XIII The Court may appoint an ad hoc Committee to consider any matter arising and may delegate to such a Committee powers to deal with the matter on the Court's behalf.
XIV The Principal shall exercise delegated authority to decide routine matters on the recommendation of colleagues in senior management, on the recommendation of Senate, or on the advice of Court and joint Court-Senate Committees. All such decisions shall be reported to the next meeting of Court to ensure that members are fully informed and have an opportunity to raise issues of interest to them.
XV When a report is submitted by a Committee the Convener if present shall have the right to move its adoption.
XVI No member shall speak more than once on the same question, except in reply upon the original motion, or in explanation, or by leave of the meeting.
XVVII The mover of an original motion shall have the right of reply. No new matter shall be introduced by the mover in reply, and, after his/her reply, no other member shall speak on the question.
XVIII A motion for the closure of debate shall be put to the vote without discussion; but such a motion shall not be moved until six members have had the opportunity to speak. If it is carried the mover of the original motion shall have a right of reply as provided in Standing Order XV.
XVIX Notwithstanding the Rector’s statutory right to preside at meetings of Court the Senior Governor appointed byof Court, (also referred to as the Vice-Chairman), will be responsible for the leadership of the Court, its effective governance and all other duties and responsibilities commonly understood as belonging to the Chair of a university governing body. The University’s Rector’s Protocol sets out the roles of the Rector and that of the Senior Governor in regard to cChairingmanship of meetings of Court.
XX All questions of order shall be decided by the Chairman, or, if the Chairman's ruling is challenged, on the motion of any member of the Court, by a vote. Any member may speak upon a matter of order suddenly arising, and should do so as soon as possible, and commence with a statement that he/she rises to raise a point of order. The member who is addressing the Court at the time of a point of order being raised, shall resume his/her seat and no other member shall be entitled to speak to the point of order unless by permission of the Chairman. When the question of order has been decided, the member who was addressing the Court at the time when it was raised, shall be entitled to proceed with the discussion, giving effect to the decision.
XXI On resuming an adjourned debate, the member who moved its adjournment shall be entitled to speak first.
XXII No standing order shall be suspended or dispensed with at any meeting, unless by consent of two-thirds of the members present and voting.
XXIII Notice of any motion to amend these standing orders must lie on the table from one meeting to the next before consideration, and the adoption of any such amendment shall require a majority of two-thirds of the members of the Court present and voting.
Page 2 of 2
Item 14.1a App 1 G&N DraftforCourtStandingOrders.docx - Page 2 of 2 Overall Page 271 of 323 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
AUDIT COMMITTEE REPORT
1. PURPOSE OF THE PAPER
1.1 The Audit Committee met on 1 November 2018. The agenda, papers and draft minutes of that meeting are available at the Court Intranet for members of Court. https://365abdn.sharepoint.com/sites/court_intranet/SitePages/Future.aspx
1.2 There were no items on the agenda which require Court approval, other than the package of reports supporting the Annual Report and Accounts, including the Risk Management Update, all of which are provided elsewhere on today’s agenda.
1.3 This paper is provided for information.
2. RECOMMENDED ACTION
2.1 Court is invited to note the report of Audit Committee business.
3. FURTHER INFORMATION
3.1 Further information is available from Ruth MacLure, Clerk to the Operating Board, [email protected], 01224 273239
27/11/18 FOI Status: Open
Page 1 of 1 Item 14.2 Audit Committee Report.docx - Page 1 of 1 Overall Page 272 of 323 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
STUDENT EXPERIENCE COMMITTEE
1. PURPOSE OF THE PAPER
1.1 The Student Experience Committee met on 27 September 2018. The agenda, papers and draft minutes of that meeting are available at the Court Intranet for members of Court. https://365abdn.sharepoint.com/sites/court_intranet/SitePages/Future.aspx
1.2 There are no items considered by the Committee requiring Court approval.
1.3 This paper is provided for information.
2 RECOMMENDED ACTION
2.1 Court is invited to note the report of Student Experience Committee business.
3. FURTHER INFORMATION
3.1 Further information is available from Karen Scaife, Clerk to the Student Experience Committee, [email protected], 01224 27612
20/09/18 FOI Status: Open
Page 1 of 1 Item 14.3 SEC Report to court.docx - Page 1 of 1 Overall Page 273 of 323 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
RESEARCH POLICY COMMITTEE REPORT
1. PURPOSE OF THE PAPER
1.1 The RPC met on 28th September 2018. The agenda, papers and draft minutes of that meeting are available at the Court Intranet for members of Court. https://365abdn.sharepoint.com/sites/court_intranet/SitePages/Future.aspx
1.2 There are no items considered by the Board requiring Court approval. Court will receive as a separate item a briefing paper on the progress of the institutional preparations for the submission to REF2021.
1.3 This paper is provided for information.
2 RECOMMENDED ACTION
2.1 Court is invited to note the report of Research Policy Committee business.
3. FURTHER INFORMATION
3.1 Further information is available from Marlis Barraclough, Clerk to the Research Policy Committee, [email protected] , 01224 273787
21/11/18 FOI Status: Open
Page 1 of 1 Item 14.4 RPC Report to Court.docx - Page 1 of 1 Overall Page 274 of 323 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
UNIVERSITY COMMITTEE ON TEACHING AND LEARNING
1. PURPOSE OF THE PAPER
1.1 The University Committee on Teaching and Learning (UCTL) met on Wednesday 31 October 2018. The agenda, papers and draft minutes of that meeting are available at the Court Intranet for members of Court https://365abdn.sharepoint.com/sites/court_intranet/SitePages/Future.aspx
1.2 Items considered by the UCTL, which require Senate and Court approval, will be forwarded to the Court by way of the report from the Senate.
1.3 This paper is provided for information.
2 RECOMMENDED ACTION
2.1 Court is invited to note the report of UCTL business.
3. FURTHER INFORMATION
3.1 Further information is available from Emma Hay, Clerk to the UCTL, [email protected] , 01224 273610.
28 November 2018 FOI Status: Open
Page 1 of 1 Item 14.5 UCTL Report to Court.docx - Page 1 of 1 Overall Page 275 of 323 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
STAFF PROMOTIONS: GRADE 7 – 9
1. PURPOSE OF THE PAPER
1.1 This is a paper about the staff promotions procedures (Grade 7 and above). The paper provides a brief summary of the 2017/18 promotions outcomes and details recommendations of changes to be made to the existing procedure for implementation in the 2018/19 exercise. It is intended that the 2018/19 exercise will be launched in December 2018.
1.2 This paper is provided for approval.
2. RECOMMENDED ACTION
2.1 The Court is invited to consider and approve the recommendations for changes to the promotions procedure and associated procedural and guidance documentation for the 2018/19 annual exercise. Appendices 1-4 are available at the foot of agenda in Meeting Squared.
2.2 Pending approval, work will be undertaken to communicate the changes to staff through information sessions at the launch of the exercise.
3. DISCUSSION
3.1 2017/18 Promotions Exercise – Outcomes
3.1.1 Table 1 below highlights the promotion outcomes for the last 2 years.
Table 1 2016/17 2017/18 Total applications 177 136 Successful 90 (50.8%) 71 (52.2%) Unsuccessful 87 (49.2%) 64 (47%) Pending 0 1 (0.8%)*
* awaiting reference
3.1.2 Please note that the data for 2016/17 includes applications for Grade 5 and 6 posts which from 2017/18 have been considered on a rolling basis rather than as part of the annual exercise.
3.1.3 Of the individuals successful for promotion this year it is notable that one individual had previously been in the informal stages of the Capability Procedure in 2013.
3.2 Review of the 2017/18 exercise
3.2.1 A review of the promotion procedures for positions Grade 7 and above takes place on an annual basis based on reviewing feedback received on the previous year’s exercise.
3.2.2 Additionally, the Reward Strategy Working Group (Promotions Sub-Group) has given initial consideration to promotion and possible improvements to policy/procedure. This group will continue to work on formulating recommendations for suggested implementation on a longer term basis. Thus, this paper focuses on feedback and recommendations for immediate implementation in the 2018/19 exercise. These are summarised below.
Membership of the Promotion Sub-Committees and Staff Promotion Committee
3.2.3 It is proposed to update the membership of the Arts and Sciences Promotion Sub-Committees to reflect changes to the VP structure.
Page 1 of 2 Item 15.1 Promotions Annual Exercise Grade 7-9.docx - Page 1 of 2 Overall Page 276 of 323 3.2.4 Furthermore, following feedback received from Court members it is proposed that Court members are not required to sit on the Staff Promotion Committee.
Notification of outcomes and appeals
3.2.5 It is proposed that staff will be advised if they have been unsuccessful earlier than current practice which is to notify after the meeting of the Staff Promotion Committee. Thus, should an application be deemed unsuccessful at the sub-committee stage, staff will be advised after this stage rather than waiting for the outcome of the Staff Promotion Committee.
3.2.6 In terms of appeals, staff notified that their application has been unsuccessful after the sub- committee will be able to appeal at that stage and, where accepted (on procedural grounds) this will be considered by the Staff Promotion Committee. Staff who have been notified their application is unsuccessful after the Staff Promotion Committee will be able to submit their appeal as per the current policy.
3.2.7 An issue has arisen regarding appeals in the 2017 exercise and it has become apparent that an incorrect version of the procedure has been uploaded to StaffNet which indicates appeals may be submitted on grounds of alleged procedural irregularity or if ‘it is deemed that that the decision is evidently unreasonable’. This was not agreed last year and therefore it is proposed the policy reverts to the intended clause regarding appeals only being accepted on the grounds of procedural irregularity.
References
3.2.8 Feedback was received that there should be additional guidance on reference requirements and criteria for heads of school and applicants. Guidance has been created.
Additional changes
3.2.9 The following administrative changes are proposed:
(i) the Head of School statement will be removed from the information shared with role analysts as it was felt that this could influence the role analysis; (ii) Academic related applications will continue to be considered by the Professional Services sub-committee other than where the role is specific to the school. In such cases the application will be considered by the Arts/Science sub-committee with heads of school receiving HERA job evaluation training to enhance their understanding of this; (iii) Grade 5/6 – positive feedback has been received although the number of applications has reduced. It is proposed to continue with the current procedure which includes applications being made throughout the year and to remind managers to encourage applications where appropriate; (iv) Professional Services posts – further clarity has been given in guidance to ensure applicants focus on why their post has changed and the increased responsibility that they have required in the role; (v) Information sessions – it is proposed that additional information sessions and online information is provided for staff including sessions at other times of the year.
3.2.10 The Academic, Academic Related and Technical Grades 7-9 promotion procedure/applicant guidance have been revised to reflect the proposed changes are attached as appendices 1-3. Additionally the new guidance on references is attached as appendix 4. These are available at the foot of agenda in Meeting Squared.
4. FURTHER INFORMATION
4.1 Further information is available from Debbie Dyker, Director of People or Tracey White, Head of HR. [email protected] tel: 01224273115
November 2018 FOI Status: Open
Page 2 of 2 Item 15.1 Promotions Annual Exercise Grade 7-9.docx - Page 2 of 2 Overall Page 277 of 323 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
ANNUAL PROCUREMENT REPORT
1. PURPOSE OF THE PAPER
1.1 This paper seeks approval from University Court of the first published Annual Procurement Report, prior to submission to Scottish Government Ministers.
2. RECOMMENDED ACTION
2.1 This paper is provided for approval.
3. DISCUSSION
3.1 BACKGROUND
3.1.1 The Procurement Reform (Scotland) Act 2014 (PRA) requires any public organisation which has an estimated annual regulated spend of £5 million or more to develop a procurement strategy then review it annually. This requirement took effect from 31 December 2016. Organisations required to develop and publish a procurement strategy were also required to develop and publish an Annual Procurement Report (APR), reflecting on the relevant reporting period of the procurement strategy.
3.1.2 This is the first APR and covers the period from 1 January 2017 to 31 July 2018 (i.e. 19 month period) as required by Scottish Government – all subsequent APRs will cover the previous financial year only.
3.1.3 The APR addresses performance and achievements in delivering the University’s Procurement Strategy (https://www.abdn.ac.uk/staffnet/working-here/legislations-7499.php) which was approved by University Court in December 2016.
3.2 RECOMMENDED ACTION
3.2.1 The University Court is invited to review and approve the Annual Procurement Report prior to submission to Scottish Government and following review and approval by Senior Management Team on 14 November 2018. The Report is available at the foot of today’s agenda in Meeting Squared.
4. FURTHER INFORMATION
4.1 Further information is available from David Beattie, Director of Finance ([email protected]) or Helane Gannicliffe, Head of Procurement ([email protected]).
23 November 2018 FOI Status: Open
Page 1 ofItem 1 15.2 Annual Procurement Report.docx - Page 1 of 1 Overall Page 278 of 323 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
MODERN SLAVERY AND HUMAN TRAFFICKING STATEMENT
1. PURPOSE OF THE PAPER
1.1 This is the Modern Slavery & Human Trafficking Statement which is required as part of the Modern Slavery Act 2015 and the Human Trafficking and Exploitation (Scotland) Act 2015. The Modern Slavery Act requires manufacturers, commercial organisations and retailers doing business in the UK, which supply goods and services and have an annual turnover exceeding £36M, to disclose information regarding their policies to prevent slavery and human trafficking within their organisation and from their supply chain. There is no special exemption for public bodies or charities. The University prepared its second Modern Slavery & Human Trafficking Statement in November 2017 which was approved by the University Court and published on the University web pages in line with requirements by the Scottish Government
1.2 The Statement must be reviewed and updated on an annual basis and this paper is provided for Approval.
2. RECOMMENDED ACTION
2.1 The Slavery & Human Trafficking Statement has been reviewed and is recommended for approval. The reviewed Statement must be published on the University web pages by 31 January 2019 as required by Scottish Government
2.2 The Court is invited to approve the revised Slavery & Human Trafficking Statement enclosed at Appendix 1.
3. Modern Slavery & Human Trafficking Statement
3.1 The Modern Slavery Act 2015 and the Human Trafficking and Exploitation (Scotland) Act 2015 were introduced in 2015 and under section 54 of the Act it states that organisations must produce a Modern Slavery & Human Trafficking Statement and publish it on their web sites and continue to revise and update it annually.
3.2 The statement should detail the steps taken by University to eradicate slavery from its business and its supply chain and what the future plans are. It must have the equivalent of Board-level approval be signed by an appropriate senior member of the organisation and be published on the organisation’s website with a link in a prominent place.
3.3 The University statement has been reviewed and updated to include steps taken by the University during the last financial year. This includes, the University’s Supply Chain Code of Conduct and updated Procurement Policy & Procedures & templates. Also, specific reference has been made this year to the new Formal Quotation procurement process and the training received on Serious Organised Crime.
3.4 The University Court is invited to approve the document for publication on the University web site by 31 January 2019.
4. FURTHER INFORMATION
4.1 Further information is available from David Beattie, Director of Finance ([email protected]) or Helane Gannicliffe, Head of Procurement ([email protected]).
27 November 2018 FOI Status: Open
Page 1 of 2 Item 15.3 Modern Slavery Statement 2019.docx - Page 1 of 1 Overall Page 279 of 323 Slavery & Human Trafficking Statement
Introduction
The University of Aberdeen is Scotland’s third oldest university and the fifth oldest in the UK, founded in 1495. It employs over 3,000 staff and teaches in the region of 14,500 students from various countries around the world.
At the University of Aberdeen, we have a zero tolerance approach to modern slavery and human trafficking in all its forms.
This statement reflects our commitment to acting ethically and with integrity in all our business dealings and relationships (in line with the University’s Sustainability and Social Responsibility Policy) and to implementing and enforcing effective systems and controls to ensure the University is not contributing to modern slavery in any way.
Purpose of the Statement
In accordance with Section 54, Part 6 of the Modern Slavery Act 2015, this statement sets out the steps the University has taken and will take in relation to slavery and human trafficking.
University Employees
The University Human Resources Policies set out our commitment to workplace rights at the University. The risk of modern slavery occurring in the University’s workforce is mitigated by ensuring that staff are recruited following robust recruitment policies. We are rigorous in checking all new recruits on our home campuses have the right to work in the UK.
The University adheres to the Public Interest Disclosure Act 1998 and implements its own Whistleblowing Policy regarding concerns about potential corruption, fraud or other malpractices within the University.
The University is an accredited Living Wage (Scotland) Employer.
Supply Chains
We buy a wide range of goods, services and works, including laboratory supplies (equipment, chemicals, pharmaceuticals etc.), furniture and stationery, electronics (computers, audio visual, etc.), travel services, food and catering supplier, waste and recycling services, books and printing, construction services and supplies, and do so in accordance with public procurement law. We have a published University Procurement Strategy and Action Plan which details our principles and practices and outlines how we take steps to ensure an ethical procurement approach.
The University is a member of Advanced Procurement for Universities and Colleges (APUC), the procurement centre of expertise for Scotland’s universities and colleges. We have contributed to and adopted the APUC Code of Conduct as the University’s Code of Conduct ensuring consistency in approach to the Supply Chain. In asking relevant suppliers to adopt the Supply Chain Code of Conduct we collaborate with others to demonstrate a commitment not to use forced, involuntary or underage labour.
Through the APUC SUSTAIN web-tool and database, suppliers are asked to provide details of measures they take in relation to modern slavery in their supply chain, including any third-party accreditations and assessments to evidence this. Where risks have been identified, we work with APUC or contact suppliers directly to deal with any social responsibility issues.
Item 15.3a Slavery Statement 271118.docx - Page 1 of 2 Overall Page 281 of 323 Also, each regulated procurement process conducted by the University requires tenderers to complete a European Single Procurement Document (ESPD) and disclose whether the bidder or any member of their organisation has been convicted in the last five years of any offence under Part 1 of the Human Trafficking and Exploitation (Scotland) Act 2015, or under any provision referred to in the Schedule to that Act. Tenderers that confirm such a conviction will be excluded from the process unless they can successfully demonstrate that they have self-cleansed.
We have an expanding programme of transnational education projects, which includes setting up campuses in countries that may have different labour standards and practices and different legal recourse for victims of exploitation. We conduct proactive human rights due diligence from the inception of all such projects, and encourage and support our overseas partners to assess and address their own modern slavery risks, sharing their findings and actions with us.
In 2015, The University of Aberdeen became a founding member of Electronics Watch, an organisation that works to ensure good working conditions in factories producing Information and Communication Technology (ICT) goods bought by public sector members across Europe. We provide them with regular reports detailing the factories in which the ICT equipment we buy are produced, according to our suppliers, and Electronics Watch works with civil society organisations in the countries where the factories are located to monitor working conditions.
In 2017, all members of APUC became members of Electronics Watch through the consortium membership, recognising the need to work together to achieve greater impact, and the University remains an active member.
Steps Taken During Last Financial Year
The University’s Procurement Policy & Procedures were updated and published on the University website in July 2018. A new Formal Quotation process has been introduced for expenditure between £10K and £50K (excl VAT) and templates provided. The requirement is that the Invitation to Quote package sent to bidders must include the University of Aberdeen Supply Chain Code of Conduct and companies must confirm they adhere to the Code of Conduct, in order to enforce and promote sound social, ethical, environmental and economic practises.
APUC has undertaken a refresh of the prioritisation exercise on all collaborative framework agreements which they lead on, to identify areas where Modern Slavery may be occurring and to take appropriate action to ensure that these framework agreements exclude the use of modern slavery practices. The Procurement Team continues to promote the use of these framework agreements within the institution and as such we can be confident that our supply chain has been analysed when contracting under these agreements. We will look to increase reliance on these collaborative frameworks which will reinforce the compliance with our policies
The Procurement Team attended a training event on Serious Organised Crime Prevention which dealt largely with Modern Slavery linked to potential criminal behaviour.
Next Steps
Where possible, within our own tenders & contracts, the University will continue to address areas of concern around modern slavery with identified suppliers and their supply chains. The Procurement Team will further increase its understanding of sustainability risk associated with each commodity category.
We will continue to participate in further Sustainable Procurement training and in supplier engagement, including through the SUSTAIN database and face to face events.
This statement has been approved by the University Court and will be reviewed on an annual basis.
Item 15.3a Slavery Statement 271118.docx - Page 2 of 2 Overall Page 282 of 323 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
OUTCOME AGREEMENT WITH THE SCOTTISH FUNDING COUNCIL 2019/20 - UPDATE
1. PURPOSE OF THE PAPER
1.1 This paper is to update Court with a summary of the process for development of the 2019/20 Outcome Agreement, noting the key areas of focus outlined by the Scottish Government via the Scottish Funding Council (SFC), and progress made to date.
1.2 This paper is provided for information.
2. RECOMMENDED ACTION
2.1 Court is invited to note the Outcome Agreement process and progress made to date; the paper does not include any recommendations.
3. BACKGROUND
3.1 Outcome Agreements between universities and the Scottish Funding Council (SFC) were introduced in 2012-13 as part of the Scottish Government’s Spending Review. They set out what an institution plans to deliver in return for their funding from SFC and are developed through a dialogue with our allocated SFC Outcome Agreement Management Team and form part of the conditions of SFC funding.
3.2 The University prepared a three-year Outcome Agreement in 2017, which was the SFC preference. This covered the period 2017/18-2019/20. Last year, the University submitted an annual update, and will do so again this time round, for 2019/20. This follows a submission in September to the SFC of a self-evaluation for 2017/18, as standard. The update will reflect progress achieved in meeting commitments across the three year period to date, and will outline key institutional objectives for 2019/20 and beyond, in line with Scottish Government priorities.
3.3 It should be noted that the SFC expects institutions deliver on outcomes set out in previous Agreements, and will benchmark progress against targets set via the National Table of Measures, which provides a framework to the sector for performance measurement across all priority areas. Where the University has failed to achieve targets, it is possible, albeit unlikely at this time, that the SFC may take action to establish an improvement plan, reduce or recover funding, or apply a penalty.
4. PRIORITY AREAS FOR 2019/20
4.1 For the Outcome Agreement process for 2019/20, the SFC have highlighted the following as areas for prioritisation and enhanced focus, based on the Scottish Government’s own strategic priorities, which include:
Widening Access (includes Commission of Widening Access – CoWA - implementation) STEM (linked to Government STEM Strategy for Education and Training) Developing the Young Workforce and Employer Engagement Early Learning and Childcare Health and Well-being (which includes Equally Safe in H/FE and Student Mental Health and Wellbeing) Tackling Gender Imbalances
Page 1 of 2 Item 15.5 OA with SFC.docx - Page 1 of 2 Overall Page 292 of 323 4.2 In addition to the above, the SFC have also stated that:
They will be undertaking a review of - and consultation on - the Widening Access and Retention Fund (WARF) over the course of 2018/19, to ensure best use of its funds. This was a recommendation made by CoWA. At present, Aberdeen does not receive funding via WARF, noting it is currently aimed at those institutions with a relatively high intake of SIMD20 students.
The SFC will continue to integrate research and knowledge exchange funding into the Outcome Agreement process self-evaluations. In particular, in the AY2019-20 process, they will seek evidence of the value that the £11.6M increase in funding for the Research Excellence Grant and University Innovation Fund in AY2018-19 has brought, or is bringing. This value will include leveraged research and industrial collaboration funding from UKRI, industry and other sources.
5. THE OUTCOME AGREEMENT – PROGRESS AND KEY MILESTONES
5.1 The Directorate of Planning is leading on developing the Outcome Agreement, as in previous years. As part of this, the Self-Evaluation for 2017/18 was drafted and submitted in September 2018, reflecting on performance against targets over the course of that year.
5.2 In developing the new Agreement for 2019-20, key stakeholder groups from across the institution are under consultation for input into different sections where relevant, with a first draft now in progress. An initial “well-developed” draft will be submitted to SFC on 10 December, as required, for early feedback on the document. This version will not be made public. In parallel to this, a more formalised consultation process has also been initiated, targeting staff, trade union representatives, students and the Students’ Association, as in previous years.
5.3 The table below sets out the current timeline for the development of the Outcome Agreement 2019/20. It is based around the key milestones given by the SFC via the formal Outcome Agreement guidance for 2019/20.
Date OA 2019/20 Milestones Early December A well-developed draft of the Outcome Agreement for 2019/20 will be 2018 submitted to SMT for consideration. 10/12/2018 The well-developed draft of the Outcome Agreement for 2019/20 due for submission to SFC, along with the University’s National Table of Measures. 31/01/2019 Comments on draft Agreement received from SFC March 2019 Draft versions of the full Outcome Agreement for 2019/20 submitted to UMG, Directors Group, and SMT for comment and approval. 26/03/2019 Outcome Agreement submitted to University Court for formal approval 30/04/2019 Final Outcome Agreement submitted to SFC. May/June 2019 Outcome Agreement process for 2019/20 concluded and Outcome Agreements published by SFC
5. FURTHER INFORMATION
5.1 Further information is available from Dr Hulda Sveinsdottir, Director of Planning ([email protected], ext. 3792) and Mr Iain Grant, Head of Strategic Planning ([email protected], ext. 2776).
22 November 2018 FOI Status: Open
Page 2 of 2 Item 15.5 OA with SFC.docx - Page 2 of 2 Overall Page 293 of 323 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
ANNUAL REPORT ON REDUNDANCY ACTIVITIES
1. PURPOSE OF THE PAPER
1.1 This paper provides an overview and update on the management of redundancy activities undertaken by Human Resources for the period of 1 December 2017 to 30 November 2018.
1.2 This paper is provided for information.
2. RECOMMENDED ACTION
2.1 University Court is invited to the note the information provided in this paper.
3. DISCUSSION
3.1 BACKGROUND
3.1.1 The University of Aberdeen is committed to seeking to avoid staff redundancies. This paper reports on the work of the committees (Redundancy Dismissal Panel and the Joint Consultative Committee on Redundancy Avoidance, (JCCRA)), which support the process of redundancy avoidance.
3.1.2 Redeployment and redundancy avoidance activities have been enabled by positive working partnerships with line managers and Campus Trade Unions with the joint aim of managing the avoidance of staff redundancies wherever possible.
3.2 RESTRUCTURING EXERCISES
3.2.2 SCHOOL OF BIOLOGICAL SCIENCES- FORESTRY
Following a review of Forestry in 2017, a consultation exercise to withdraw Forestry programmes commenced with three staff being placed at risk of redundancy in October 2017 as a result. Following collective and individual consultation no staff were made redundant.
3.2.3 IT- RESEARCH APPLICATIONS & DATA MANAGEMENT TEAM
In October 2017, IT also sought to restructure the Research Applications & Data Management Team, this concluded in December 2017. Of the staff placed at risk, none were made redundant, instead they were all successfully redeployed or accepted Voluntary Severance.
3.3 OTHER KEY ACTIVITIES
Collective consultation has been ongoing with our recognised Trade Unions. This is carried out in accordance with the Consultation on the Avoidance of Redundancy Policy. A full JCCRA meeting is still held quarterly, with operational meetings in the intervening months. Additional meetings are scheduled as required to support further consultation on proposed restructuring exercises as and when required. Individual consultations are also undertaken to ensure that individuals are fully supported in reviewing options to mitigate redundancy. Individual consultations are undertaken by a mix of Academic Line Managers and Heads of Schools.
Page 1 of 3 Item 15.6 Annual Report Redundancy Activity Court Dec2018- Draft 1.docx - Page 1 of 3 Overall Page 294 of 323 At individual consultation meetings the support available to staff to mitigate redundancies is discussed. This includes self-marketing workshops delivered by an outplacement company, CSP Scotland, access to redeployment vacancies and support available via the careers services.
In addition, a review of the Consultation on the Avoidance of Redundancy Policy is now being undertaken with Trade Unions. The purpose of the review is to ensure that the Policy remains appropriate for University and staff needs.
3.3.1 OUTCOMES OF CONSULTATION
A graphical representation of the outcomes of all cases over the last year is shown in Appendix A, with the graph from the previous year shown for comparison. These figures relate to staff with projected end dates up to 30 November 2018. In comparison to last year the number of staff entering the process has decreased significantly. This is a continuing trend from previous years. This reflects the fact that there have been no single large projects with a projected end date during this period. In addition, Schools/Sections have worked along with HR to secure further funding earlier to prevent staff being placed at risk of redundancy.
There has been an overall increase in the proportion of staff made redundant, rising from 30% in 2016/2017 to 36% in 2017/2018. However, the total number of staff effected has reduced significantly- in 2016/2017 191 staff members were made redundant whilst in 2017/2018 this has reduced to 81.
A breakdown of the numbers of staff at risk of redundancy by staff category is shown below. Consistent with previous years, the majority of ‘at risk’ staff are Researchers. This is due to the nature and funding of the project work on which they are engaged.
Staff Category Number of Individuals placed “At Risk”
1 Dec 2016 - 30 Nov 2017 1 Dec 2017 - 30 Nov 2018 Research 219 157 Teaching 20 10 Administrative 28 20 Academic 18 8 Technical 3 5 Secretarial 9 12 Support 22 11 Total 319 223
3.3.2 OUTCOMES OF CONSULTATION BY GENDER
An analysis of the Outcomes of Redundancy Consultation by Gender can be seen in Appendix B. Of the 223 employees who entered the consultation process 133 were female and 90 were male. The graph shows that the outcomes for males and females at the University are not significantly different, with 34% of female and 40% of male employees who enter the process being confirmed redundant.
3.4 REDUNDANCY DISMISSAL PANEL
The Redundancy Dismissal Panel, convened by the Senior Vice-Principal, meets monthly to consider recommendations in respect of individuals who remain at risk of redundancy upon the conclusion of the collective and individual consultation processes.
If a redundancy situation cannot be avoided, members of staff who have accrued two years continuous service at the date of their dismissal receive a statutory redundancy payment.
During the 2017/18 financial year (August-July) 56 individuals received redundancy payments totalling £202,284. Of this approx. 30% of this was paid to one individual with enhanced contractual redundancy provisions which were preserved under TUPE. In the 2016/2017 financial year, 56 individuals received redundancy payments totalling £135,244 during the same period.
Page 2 of 3 Item 15.6 Annual Report Redundancy Activity Court Dec2018- Draft 1.docx - Page 2 of 3 Overall Page 295 of 323 Payment in lieu of notice (PILON) is paid when an individual’s full notice period is not met at the time of dismissal being confirmed. In the period 2016/2017, six individuals received PILON totalling £62,279. This reduced to £9,357 in 2017/2018 and was paid to nine individuals.
4. FURTHER INFORMATION
4.1 Further information is available from Mrs Debbie Dyker, Director of People Services, Mrs Tracey White, Head of HR, or Miss Fiona MacAskill, HR Partner.
28 November 2018 FOI Status: Open
Page 3 of 3 Item 15.6 Annual Report Redundancy Activity Court Dec2018- Draft 1.docx - Page 3 of 3 Overall Page 296 of 323 APPENDIX A: OUTCOMES OF CONSULTATION PROCESS
Outcome of Redundancy Consultation Process 2017/2018
New Project/Role Continuation of Project/Role Redundant Resigned/TUPE
12% 11% 9% 8% 9% 9% 10% 10% 12% 11% 11% 11%
39% 36% 35% 38% 37% 37% 36% 37% 34% 36% 36% 36%
31% 32% 34% 34% 29% 30% 35% 33% 34% 35% 37% 37%
23% 21% 22% 21% 21% 22% 19% 19% 20% 19% 16% 15%
Jul-18 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Aug-18 Sep-18 Oct-18 Nov-18
Please note that the November 2018 figures are still subject to change, as the redeployment Adviser continues to work with staff to mitigate redundancy until their last day of service.
Outcome of Redundancy Consultation Process 2016/2017
New Project/Role Continuation of Project/Role Redundant Resigned/TUPE
8% 8% 9% 8% 9% 9% 9% 9% 10% 10% 10% 10%
26% 27% 27% 27% 29% 29% 29% 29% 30% 30% 31% 30%
42% 40% 41% 40% 40% 39% 38% 38% 38% 36% 36% 37%
24% 24% 24% 24% 22% 23% 24% 24% 23% 23% 23% 23%
Jul-17 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Aug-17 Sep-17 Oct-17 Nov-17
The figures below show the total number of individuals who were at risk of redundancy during the period 1 December 2017 and 30 November 2018 and are a numeric illustration of the percentages shown above.
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
16/17 379 372 286 322 314 321 326 325 331 328 323 319
17/18 273 271 269 256 252 252 242 227 223 219 227 223
Page 1 of 2 Item 15.6b App A-B Annual Report Redundancy.docx - Page 1 of 2 Overall Page 297 of 323 APPENDIX B- OUTCOMES BY GENDER (1 DECEMBER 2017-30 NOVEMBER 2018)
Outcomes By Gender
250
200 15
150 59 12 16 100 45 43 38 13 18 31 36 50 75 58 16 42 25 0 Female 16/17 Male 16/17 Female 17/18 Male 17/18 Continuation of Project/Role New Project/ Role Redundancy Resigned/Tupe/VS
Page 2 of 2 Item 15.6b App A-B Annual Report Redundancy.docx - Page 2 of 2 Overall Page 298 of 323 11 December 2018
UNIVERSITY OF ABERDEEN
UNIVERSITY COURT
REPORT FROM SENATUS ACADEMICUS
1. PURPOSE OF THE PAPER
1.1 This is a paper about the main items of business considered by the Senate at the meeting held on 10 October 2018.
1.2 This paper is provided for information.
2. RECOMMENDED ACTION
2.1 Court is invited to note items 3.1 to 3.3 of this report.
3. DISCUSSION
3.1 Appointment of the Senior Governor
Senate briefly discussed the announcement that the Senior Governor would be standing down from his role in due course. Senate agreed a motion to be submitted to the Governance & Nominations Committee recommending wide involvement in the process for determining the next Senior Governor. The motion is enclosed as part of the separate item on today’s agenda on the process for appointment of the Senior Governor.
3.2 REF Update
Senate received an update on progress of the institutional REF preparations together with information on the funding councils’ consultation exercise on the REF2021 Draft Guidance and Sub-panel criteria and working methods. In addition, Senate were informed of the requirement for the Institution to create a Code of Practice and submit it to the Scottish Funding Council (SFC). Members of the Senate noted that they would be invited to discuss the draft institutional Code of Practice before its submission to the Court for approval prior to its final submission to the SFC.
3.3 Outcomes of the Annual Senate Survey
Senate received a report on the outcomes of the Annual Senate Survey for 2017/18. Senate noted the key issues arising from the survey as:
(i) Responses indicated that, although there was an improvement on previous years, there was a low number of respondents who believed that Senate used its time efficiently. (ii) Only 46% of respondents felt that meetings and the business of the Senate were effectively conducted. (iii) 38% of respondents felt that there was effective communication between the Senate and the Court.
Following general discussion, Senate agreed that the matters raised would be referred back to the Senate Business Committee for further consideration and suggestions of possible actions.
4. FURTHER INFORMATION
4.1 Further information is available from Professor Phil Hannaford ([email protected] or extension 2017) or Dr Rachael Bernard ([email protected] or extension 3388)
23 November 2018 [version 1] FOI Status: Open
Page 1 of 1 Item 15.7 Senate Report.pdf - Page 1 of 1 Overall Page 299 of 323