ANNUAL REPORT& Accounts 2017 for graduate TOP earnings Key facts in the after a year’s 10UK employment (Longitudinal Education Outcomes (LEO) data from the Department for Education 2017) TOP 10 for ‘spell-binding Ranked in university libraries the world’s in the world’ top 200 The Independent universities 120 nationalities, with 14,500 students 76% of research is ‘world leading’ or internationally excellent Research Excellence Framework 2014 RATED TOP IN THE UK SPORT st in REF14 for in the environmental and SCIENCE soil science research UK Guardian University 1 Rankings 2018 Olympic-standard Aberdeen Sports DENTISTRY th Village and in the Aquatic Centre UK Guardian University 4 Rankings 2018 Our engineering and PHYSIOLOGY rd technology graduates in the earn the highest salaries in the UK after 5 years Guardian University UK (Longitudinal Education Outcomes (LEO) data Rankings 2018 3 from the Department for Education 2017) One of the of graduates enter directly into work, LARGEST 96 further study or training wireless campuses % within six months in Europe (Higher Education Statistics Agency, 2016) University of Aberdeen 2 Contents Senior Governor’s welcome ...............................................................................................................................................4 Principal’s introduction ..........................................................................................................................................................6 Strategy at a glance .................................................................................................................................................................8 Progress against our Strategic Plan .................................................................................................................................10 Feature: Official opening of the Rowett Institute ..................................................................................................16 Our global reach .......................................................................................................................................................................18 Feature: An international outlook ...................................................................................................................................20 Feature: Harvesting ivory sustainably ............................................................................................................................22 Behaviour changing research .............................................................................................................................................24 Feature: Working with industry .......................................................................................................................................28 The University in the community ...................................................................................................................................30 Students in society .................................................................................................................................................................32 May Festival .................................................................................................................................................................................34 Feature: Digital technology .................................................................................................................................................36 Celebrating success .................................................................................................................................................................40 Honorary Graduates & RSE Fellows ...............................................................................................................................42 Sporting successes...................................................................................................................................................................44 Spin-out companies ...............................................................................................................................................................48 Statement of corporate governance and internal control ................................................................................50 Statement of primary responsibilities of the court ..............................................................................................55 Membership of Court and key committees .............................................................................................................60 Risk management .....................................................................................................................................................................69 Financial review .........................................................................................................................................................................73 Independent auditor’s report to the Court of the University of Aberdeen............................................78 Financial statements ...............................................................................................................................................................80 Statement of comprehensive income .................................................................................................................81 Consolidated and university statement of changes to reserves ...........................................................82 Balance sheets ...................................................................................................................................................................83 Consolidated cash flow statements .....................................................................................................................84 Statement of principal accounting policies and estimation techniques ...................................................85 Notes to financial statements ...........................................................................................................................................90 Principal advisors ......................................................................................................................................................................110 Glossary .........................................................................................................................................................................................111 3 Annual Report & Accounts 2017 Senior Governor’s Welcome In this my first year as Senior Governor, it is a very great Political uncertainties will always exist, as will the fixed pleasure and honour to welcome you to the University’s public funding envelope. The challenge for the University Annual Report and Accounts. Court which I lead, and the senior management team, is to ensure the University can shape and define its own As an Aberdeen graduate, and having grown up in the city, future in a way that allows it to navigate those uncertain I thought I knew the University fairly well, however it has waters and achieve the strategic objectives we have set for become clear to me, since my appointment in January 2017, success. that the work going on here is more exciting, innovative and truly important than I had realised. This Annual Report Underpinning everything else is financial sustainability provides a flavour of that work and of the many ways that and the means to invest in our staff and students. The the University is living up to its vision of transforming the University must continue to grow and diversify its world with greater knowledge and learning. sources of income while also ensuring it has a financial and academic structure which is sustainable and with the It’s an important vision on many levels. Not least because capability to respond to whatever events may lie ahead. it is key to the academic values a university like Aberdeen What is striking in this report, however, is that despite this holds dear. It is important also because it is global in its difficult external environment, the University can point aspiration and recognises that knowledge and learning to many success stories. This report includes numerous transcend national borders. That speaks of a University that examples of the achievements of University staff and defines itself not only in regional and national terms but of the excellent education that is benefitting so many which is global in its ambition. In today’s world of higher students from home and abroad. education, that global reach and reputation is increasingly key to being successful within the limits of the current It is a very great honour for me to have been appointed as national funding environment. Senior Governor and I am committed to doing whatever I can to help the University respond to the challenges and The success of the University matters not just for our staff, opportunities of global higher education. I know that my our students and our alumni, but because it has a key role colleagues on Court share that commitment. We approach to play in the future of the city and region of Aberdeen 2017/18 with a new Court, the membership of which and the North-East of Scotland to which it belongs. Their has changed to meet the requirements of the Higher success in turn is key to the future success of Scotland and Education