ANNUAL REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2017 Annual Reports and Financial Statements 2017 Warden’s foreword 1 Council and committee membership 2 Strategic report 4 Public benefit statement 32 Corporate Governance and Internal Control 36 Independent auditor’s report 40 Accounting policies 42 Statement of Comprehensive Income and Expenditure 48 CONTENTS Statement of changes in reserves 49 Balance sheet 50 Cash flow statement 51 Notes to the Financial Statements 52-74 1 76 This time last year I wrote that we The reason for this is that amid are living in a time of seemingly all this change, Goldsmiths is constant change. Some 12 months truly a beacon institution to on, it could be argued the pace which scholars are drawn. of transition is only increasing. Research by our academics sets Ongoing uncertainty over Brexit agendas across the globe, our and shifting political sands both students are recognised for their at home and abroad are the dynamism and our alumni are foundations for this sense of flux. known and honoured for being leading thinkers and doers. But the academic year 2016-17 also saw notable shifts in the Higher Our world-leading status was Education landscape, with new recognised in the QS World University legislation, metrics and increasing Rankings, which for the first time scrutiny ensuring that the sector has saw us placed in the top 400 been in both the headlines and at universities globally. The QS subject the centre of much public debate. tables have ranked our Department of Media and Communications When the Higher Education and the 8th best in the world. Research Act entered law just before the dissolution of Parliament, We continue to provide former universities minister Lord academic innovation, with new Willetts called it the ‘most important’ undergraduate programmes in legislation for Higher Education Mathematics beginning in the in a quarter of a century. next academic year, and the development of Law ongoing. A key part of the legislation was the introduction of the In addition to all of this, we are Teaching Excellence Framework proud to be part of our community. (TEF), a scheme to assess the quality In August, the College joined with WARDEN’S FOREWORD WARDEN’S of teaching in our universities. Lewisham Council to mark the 40th anniversary of the Battle of We ranked Bronze, a result Lewisham, by unveiling a plaque shared by many of our sister in New Cross dedicated to the organisations in London. The moment in 1977 when thousands outcome was disappointing but is gathered on our doorstop to unite not something we will hide from against racism and fascism. – and colleagues across campus are working hard to bring about Next year brings us opportunity our own change for the good. to share our campus with even more people, with the Goldsmiths In addition to this, there are Centre for Contemporary Art to be fresh questions over how we can completed in 2017-18 in preparation establish a truly sustainable and for its opening in Autumn of 2018. fair system to fund universities – a debate which will continue over We recognise that this is a time of the coming months and years. both opportunity and challenge, and that to successfully rise to But while the year contained both we must evolve and grow as some challenges it also saw true an institution. I am confident that successes. Against probably the we have the knowledge, ambition toughest recruitment conditions for and passion to do just that. years we have performed incredibly well – and we travel with optimism Patrick Loughrey for the 2017-18 academic year. Warden 2 76 Annual Reports and Financial Statements 2017 Council Audit and Risk Committee Baroness Morris of Yardley (Chair) Ms Sue Reece Mr Nick Barron (Chair from 1 September 2017) Mr Ian Borman Mr Philip Wright (Chair to 31 August 2017) Ms Althea Efunshile Dr Barry Quirk Ms Helen MacNamara (from 1 September 2017) Ms Jackie Morgan Ms Jackie Morgan Ms Althea Efunshile Ms Lynn Pearcy Mr Steve Stanbury (from 1 September 2017) Mr Chris Miller Dr Barry Quirk Mr Aaron Porter Sir David Reddaway (from 1 September 2017) Ms Sue Reece Ms Carol Rue Key Management Personnel (from 1 September 2017) Mr Patrick Loughrey (Warden) Mr David Richards Professor Jane Powell (to 31 December 2016) (Deputy Warden to COUNCIL AND Ms Vanessa Sharp 31 December 2016) Ms Jessica Wanamaker Professor Elisabeth Hill (to 31 August 2017) (Deputy Warden from 1 January 2017) Mr Tom Wilson Professor Mark d’Inverno (Pro-Warden) Mr Philip Wright (to 31 August 2017) Professor David Oswell Ms Theodora Zemek (Pro-Warden from 1 January 2017) Dr Kate Devlin Mrs Helen Watson Dr Marl’ene Edwin (Registrar and Secretary Ms Grace See Wen-Ying from February 2017) (to 31 August 2017) Ms Clare MacLean Mr Joseph Williams (Interim Registrar and Secretary (from 1 September 2017) to February 2017) Mr Daniel Nasr (to 31 August 2017) Mr Ian Pleace Ms Eva Crossan-Jory (Director of Finance) (from 1 September 2017) Mr Andy Lamb Mr Patrick Loughrey (Director of Human Resources from May 2017) COMMITTEE MEMBERSHIP Professor David Oswell (from 1 January 2017) Ms Kath Clarke (Director of Human Resources Professor Jane Powell to May 2017) (to 31 December 2016) Ms Lynne Tucker Professor Mark d’Inverno (Interim Chief Information Professor Elisabeth Hill Oficer from March 2017) Professor Richard Noble Mr David Swayne (to 31 August 2017) (Chief Information Oficer Professor Sean Cubitt to March 2017) (to 31 August 2017) Mr Gerald Lidstone Professor Andy Bremner (from 1 September 2017) Mr Conrad Heynes (from 1 September 2017) 4 76 Annual Reports and Financial Statements 2017 A NOTE ON DEFINITIONS The Higher Education sector has a tendency to lapse into acronyms and to use terms that are not necessarily familiar off-campus. With that in mind, here is a list of definitions of a number of key terms used throughout this document: Council Goldsmiths’ overall governing body. DELHE Destinations of Leavers from Higher Education, a survey which collects information on what all leavers from Higher Education programmes are doing six months after qualifying from those programmes. FRS 102 Financial Reporting Standard 102 is the UK accounting standard that Goldsmiths is obliged to follow, along with the Higher Education SORP (see below). HEFCE The Higher Education Funding Council for England. In the past, HEFCE was both our major source of funding as well as our regulator. Following the introduction of £9,000 tuition fees for Home and EU undergraduate students, HEFCE’s role became more focused on regulation, although some forms of HEFCE block grant funding remain. NSS The National Student Survey, an annual exercise whereby final-year students contribute feedback STRATEGIC REPORT STRATEGIC on their Higher Education experience. OFS Office for Students, the sector’s forthcoming new regulator. QR funding The HEFCE block grant funding for research activity, used to sustain a research base at Goldsmiths alongside grant income won through bids/applications to Research Councils and other funders. REF Research Excellence Framework, an exercise conducted in 2014 to assess the quality and impact of research activity across the Higher Education sector. The results of the REF were used to inform the allocation of QR funding (see above). SMT The Senior Management Team, which provides overall operational leadership to Goldsmiths. SORP Statement of Recommended Practice, which gives guidance on how to apply FRS 102 to the Higher Education sector. STEM A collective term used to describe Science, Technology, Engineering and Maths. Recognising the role that creativity plays in scientific advance, we are committed to the idea of STEAM subjects, where the ‘A’ stands for Arts. TEF Teaching Excellence Framework, a new government exercise that aims to recognise and reward excellent learning and teaching, and help inform student choice. UKRI UK Research and Innovation, a new body that will bring together the UK’s existing research councils. 5 76 INTRODUCTION THE GOLDSMITHS JOURNEY The Strategic Report covers pages 5 to 30 inclusive. The Goldsmiths story starts in 1891 when the Worshipful Company of Goldsmiths (‘the Goldsmiths Company’), This Strategic Report has been prepared under one of the principal City Livery Companies, opened the narrative disclosure requirements of the a Technical and Recreative Institute at New Cross, Higher Education Statement of Recommended on the site of the former Royal Naval College. The Practice (SORP). The financial results and position present day Goldsmiths College remains on the discussed within the Strategic Report have been same New Cross site in south east London. presented in line with the accounting requirements of Financial Reporting Standard 102 (FRS 102). The original objective of the Institute was “the promotion of the individual skill, general knowledge, health and The report gives an overview of how our unique and wellbeing of young men and women belonging to the distinctive institution works. It explains the historical industrial, working and poorer classes” with its focus journey we have been on and how that rich history on the communities of south east London. By 1896 the informs the Goldsmiths of today. We explain our total number of enrolled students had topped 7,000. strategic objectives and look at progress in achieving those objectives and where there is more work to be New legislation passed in 1902 gave the then London done. The report describes our operating structure County Council significant power over the control of and the key financial drivers that impact Goldsmiths education in London. Unwilling to compete against (the so-called ‘business model’ of the College) new institutions that would be funded by the ratepayer, and we address our financial performance in the Goldsmiths Company decided, in 1904, to gift the light of those drivers.