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2021-07-31-accounts

Annual report and consolidated financial statements

Year ended 31 July 2021

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTSCharity Number: 1001127 1 Company Number: 2517018

Contents

Contents
Trustees’ report 3
Independent auditor’s report to the
members of Universities UK 22
Consolidated statement of fnancial activities 25
Balance sheets 26
Consolidated cash fow statement 27
Notes to the fnancial statements 28
Legal and administrative information 53

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TRUSTEES’ REPORT

Trustees’ report

The trustees present their report and the financial statements for Universities UK for the year ended 31 July 2021.

Name and membership

The name of the charity and company is Universities UK. Universities UK is the representative organisation for the UK’s universities. Its members are the executive heads of UK university institutions who have met the criteria for membership agreed by the Board of the company. It currently has 140 members. Membership is voluntary and members are represented both at the UK level and through Universities Scotland and Universities Wales.

The objectives of Universities UK as set out in its Articles of Association are:

Mission and main activities

The mission of Universities UK is to create the conditions for UK universities to be the best in the world, maximising their positive impact locally, nationally and globally. Services and activities include research and policy development, lobbying of government and influential stakeholders, dissemination of information to members and the wider public using all forms of media, conferences and events, and national and international networking activity.

Public benefit

All of Universities UK’s activities are ultimately carried out for the wider public benefit of creating and maintaining a world-class higher education sector that benefits students, the UK economy, the UK’s educational and research standing in the world and the wider social good. Collectively, the institutions led by the members of Universities UK demonstrate their wide social and economic contribution through the delivery of research, teaching, expertise and training. Higher education is available to all with the ability to benefit, regardless of their economic circumstances. The benefits of this activity to the UK are considerable. UK Universities played a significant role in the research, medical and civic response to the Covid-19 pandemic.

The trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit. In delivery of its services and activities, Universities UK has fully supported its members, and assisted them to achieve their public benefit goals.

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TRUSTEES’ REPORT

Trustees

Following the Governance Review the Board is reducing to 21 members through retirement of the 7 elected policy network replaced by 4 policy leads. For the year 2020–21 the Board comprised 22 Directors and for the next year the reduction will be complete with a Board of 21 Directors. The Board are directors of the company and trustees of the charity, elected or appointed from among its members. Those appointed for the year to 31 July 2021 were as follows:

Professor Julia Buckingham CBE President 2019–2021, further term 2021–2022 as appointed member Professor Colin Bailey CBE Professor Liz Barnes CBE Professor Dame Janet Beer DBE Professor Paul Boyle CBE Professor Chris Day Professor Graham Galbraith * Professor Jenny Higham Professor Debra Humphris Professor Sir Chris Husbands Professor Paul Layzell DL Treasurer Professor Julie Lydon OBE * Chair, Universities Wales & Vice-President Wales Professor Sally Mapstone Professor Sir Gerry McCormac Convener, Universities Scotland & Vice-President Scotland Professor Quintin McKellar CBE Vice-President England and Northern Ireland Professor Edward Peck CBE Professor David Phoenix OBE * Professor Rama Thirunamachandran Dr Paul Thompson Professor Wendy Thomson CBE Professor Adam Tickell Professor Shearer West CBE * Term of office ended 31 July 2021

The following were also members of the UK Board on the date this report was approved:

Professor Steven West CBE Appointed 1 August 2021 President 2021-2023 Professor Elizabeth Treasure Appointed 1 August 2021 Chair, Universities Wales & Vice-President Wales

No member of the UK Board had a beneficial interest in any contract with the company. Board members are elected by the vice-chancellors of the member universities or nominated by the Governance and Nominations Committee.

Chief Executive

Alistair Jarvis

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Structure, governance and management

Organisational structure of the company

Universities UK

Universities UK is a company limited by guarantee with the registered number 2517018, governed by its Articles of Association adopted in December 2020. It is a charity with the registered number 1001127. Its principal offices are in Bloomsbury, London.

Universities Scotland

In Scotland (where it operates from its Edinburgh office under the name Universities Scotland), Universities UK is registered as a charity with the registered number SC029163.

Universities Wales

In Wales (where it operates from its Cardiff office under the name Universities Wales), Universities UK is part of the charity with the registered number 1001127.

Structure of subsidiary companies

Woburn House Conference Centre Ltd

Universities UK owns 100% of the share capital of Woburn House Conference Centre Limited (company number 3031467) whose business is the operation of the conference facilities at Woburn House. Income generated from the activity of the centre is covenanted to Universities UK.

Medical Schools Council

Universities UK is the holding member of the Medical Schools Council, a company limited by guarantee (company number 8817383) and registered with the Charity Commission (number 1155370). The objects of the Medical Schools Council are to promote, encourage and develop medical schools in the UK and thereby advance education for the public benefit, in particular medical education, research and training. Its Board of Directors is elected from its own members.

MSC Assessment

The Medical Schools Council is the holding member of MSC Assessment, a company limited by guarantee (company number 8578576) and registered with the Charity Commission (number 1153045). The objects of MSC Assessment are to advance medical education for the benefit of the public including by the preparation, validation, accreditation, conduct and administration of any tests, examinations or other systems of assessing, evaluating and recording any aspect of medical education and training. Its Board of Directors is elected from members of the Medical Schools Council.

The results and financial position of Woburn House Conference Centre Limited, the Medical Schools Council and MSC Assessment are consolidated with those of Universities UK in preparing its consolidated financial statements. Separate results are shown in note 22 to the financial statements.

CVCP Properties plc

CVCP Properties plc is not a subsidiary of Universities UK but is considered to be a related party. Universities UK owns all 550,000 preference shares in CVCP Properties plc and 50,000 (1%) of its ordinary shares. Universities UK is a major tenant of CVCP Properties plc in Woburn House.

Restricted funds

The restricted funds managed by Universities UK include the Council of Deans of Health (to 1 August 2021) and parts of Universities UK International funds (operating units of Universities UK). Medical Schools Council and its various funds (a subsidiary) and MSC Assessment (a sub-subsidiary) are also restricted funds in Universities UK’s consolidated financial statements. Further details on the objectives, activities and financial performance of all restricted funds are given in notes 20 and 22 to the financial statements.

Relationship with higher education sector agencies

Universities UK is the original subscribing member of various UK higher education sector agencies including Advance HE, Higher Education Careers Service Unit, Higher Education Statistics Agency, Office of the Independent Adjudicator, Quality Assurance Agency, UCAS, Universities and Colleges Employers Association and Jisc.

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Governance and decision-making

Non-executive directors/trustees

The Board of Trustees comprises up to 21 members and meets five times a year as a minimum. The President, elected by the members, serves a two-year term. The Chairs of Universities Scotland and Universities Wales are members of the Universities UK Board, serving as Vice-Presidents alongside an elected Vice-President for England and Northern Ireland.

Induction and training of trustees

New trustees receive information supporting their induction, which includes relevant Charity Commission documents on the role of a trustee, a copy of the Universities UK Articles of Association and the Strategic Plan. It is the aim of the organisation to update trustees and members on any new legislation that may affect the governance of the charity and to offer on-going support through additional training when required.

Board sub-committees

Universities UK has six standing committees: Board Advisory, Resources, Audit and Risk, Governance and Nominations, Membership and Remuneration. Four policy lead roles on the Board lead on key policy issues of the UK higher education agenda in line with the organisation’s strategic priorities. Membership of committees is made up of a combination of Universities UK Board members and Universities UK members. The Resources, Audit and Risk and Remuneration also have an independent member appointed through a competitive recruitment process.

Arrangements for setting pay and remuneration

Member input and support to the work of Universities UK is on a non-remunerated basis.

The pay and remuneration of executive management is set by a Remuneration Committee, which comprises Universities UK members chaired by the Treasurer and includes an independent member. The pay and remuneration levels for all other staff grades is negotiated with the recognised union, Prospect, as part of the recognition agreement.

Executive management

The Chief Executive leads a Senior Leadership Team comprising the Directors of Policy, Member Services, Universities UK International, Communications and External Affairs, Operations, Universities Scotland and Universities Wales.

Members of Universities UK contribute to governance oversight of these bodies through Board membership and other involvement, alongside interaction between Universities UK staff and staff of the bodies concerned. Transactions between Universities UK and these sector agencies are disclosed in note 26 to the financial statements.

Charity Governance Code

Universities UK governance has been reviewed against the Charity Governance Code. Universities UK is committed to applying good practice where possible and explaining where it is not aligned, and the reasons for this or changes that are being planned. The Code is applied in the context of Universities UK being a relatively small membership organisation of 140 members, with most of the Board elected by and from its membership. This prompts challenges in achieving the full recommendations of principle 6 (diversity) and the composition recommendations in principle 5 (Board effectiveness).

Principle 1 – organisational purpose

2020–21 was the third year of the strategic plan for 2018–23: World Leading Impact. The review of Governance Effectiveness concluded that Universities UK’s objects as set out in its Articles of Association are fit for purpose and are consistent with the mission, vision and strategy. Board has oversight of the management of resources ensuring that the allocation is linked to operational plans in pursuit of strategic objectives and therefore overall organisational purpose.

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Principle 2 – leadership

The Board is led by the President, supported by a Board Advisory Committee. Across the Board and Committee there are robust debates leading to an agreed direction for the officers and staff to follow. 2020–21 was the second year of the President’s twoyear term, and elections took place in the year for President and other vacant Board posts as members come to the end of their terms. The President has oversight of CEO performance.

Principle 3 - integrity

Board and Board Advisory Committee members declare all conflicts of interest at every meeting and will absent themselves from discussions as required. Through its sub-committee structures the Board has oversight of issues such as finances, HR practices, procurement, data security and integrity, safeguarding and remuneration to make sure that the charity operates responsibly in line with its own ethics and values.

By 31 July 2021, Professor Dame Janet Beer DBE (President and chair of the Board from 2017-19) had served 12 years in a number of different elected roles and is now elected by the membership for a further 3-year term starting 1 August 2020 as Policy Lead for International. The average length of service among Board members is 3.5 years.

Principle 6 – equality, diversity and inclusion

Much of the Board (15 members) are elected from and by the membership, therefore there is a limit to the number and diversity of potential candidates. The remaining positions are ‘nominated members’ identified by the Governance and Nominations Committee and approved by the Board. The nominated positions are selected using a matrix of skills, experience, knowledge, background and institution. The Governance Effectiveness review found that “… as far as it can within the constraints of an elected Board, Universities UK takes reasonable steps to ensure that diversity in its widest sense is prioritised and implemented”.

Principle 4 – decision making, risk

and control

The Board have oversight of finance, performance and risk through its sub-committee structure and Board meeting agendas. The Audit and Risk Committees considers risk at each meeting. The Board are presented with the strategic risk registers at every meeting and have a full discussion on risk once a year, or more often if significant changes occur. All sub-committees have Terms of Reference established which are approved by the Board. As a result of the Covid-19 crisis, the Board has met more frequently through the year as required and established several subgroups to work on specific issues.

Principle 7 – openness and accountability

The Board and Executive team make every effort to engage with the full membership and give all members opportunities to participate in the setting the direction of work for the charity through regular member meetings, roundtable events, VC dinners with the senior team and task and finish groups. The Chief Executive host monthly Teams calls for groups of 15-20 members, to which all members are invited, to discuss current issues. Members of the senior team also regularly speak one-to-one with members and visit universities, meeting with members of their senior teams.

Principle 5 – Board effectiveness

15 out of 21 Board members are elected from the membership by the membership. There are agreed lengths of time for Board members to serve, and they are subject to re-election when those terms expire. It is unusual for terms to exceed nine years, but possible if members are elected to different roles on the Board or they have specific expertise or responsibilities relevant to the Board’s deliberations and the organisation’s strategic priorities.

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TRUSTEES’ REPORT

Strategic report

Strategic aims

2020–21 represented the third year of Universities UK’s five-year-strategic plan: 2018–23, World Leading Impact. The long-term, strategic objectives are:

These aims are achieved through the delivery of activities to members in England, Northern Ireland, Scotland and Wales to support their domestic and international activities, and institutions providing higher education in medical and health. Our work is organised through annual programme plans, detailing our short-term objectives.

During 2020–21 the Covid-19 crisis has been a dominant theme with the unpredictable trajectory or the pandemic continuing to cause significant challenges for Universities UK members, their students, and staff. Over the year, Universities UK has progressed multiple Covid-19 related workstreams.

Despite Covid-19, Universities UK has made significant progress across a wide range of other policy areas including issues relating to admissions reform, quality, research, regulation, funding, tackling harassment and international students. We have supported the sector through a seismic change – the UK’s exit from the European Union – helping universities plan for a range of scenarios and securing continued participation in Horizon Europe as an associated country.

We have continued to engage more regularly than ever with members via multiple channels and our latest member survey found high levels of satisfaction and positive sentiment on Universities UK’s value for money (with 100% of members expressing positive sentiment about the organisation’s value for money). The survey will be critical in informing our priorities, activities and actions for 2021–22 as the sector looks to maximise its role in the nation’s post-pandemic recovery.

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Activities for members – England, Northern Ireland, UK wide and International

Our activities include policy research, analysis and development, relationship building, lobbying and advocacy, communications with the media, public and stakeholders and development and delivery of services to our members.

Members are at the heart of our work and keeping members informed, connected with their peers and stakeholders and campaigning and lobbying on their behalf are priorities. Engagement with members stepped up significantly as we supported them with the implications of Covid-19. This included briefing emails from the CEO to members, emails to senior institutional teams with a roundup of developments, over 60 group calls (via Microsoft Teams) led by the CEO with Vice-Chancellors (typically in groups of c20) to update and seek feedback on developing issues and more than 100 electronic updates. On an individual basis we matched Vice-Chancellors in mentoring relationships and supported mid-term and new Vice-Chancellors coming into role during the year through peer-to-peer learning and support.

Following a comprehensive Governance Review in 2018, we have now completed the implementation of all its recommendations. The changes to the Articles were agreed at the December 2020 AGM, a new subcommittee structure (including a new governance and nominations committee) and other governance effectiveness enhancements are in place and the Board has now been reduced from 24 to 21 members. Throughout the Covid-19 crisis the Board and Board Advisory Committee has met more frequently to respond effectively to the volatile situation.

Universities UK has secured a significant amount of parliamentary engagement in the year with 174 written and oral questions in parliament on issues of interest to our members and 81 positive references to Universities UK’s work from parliamentarians and government. There have been very regular meetings with ministers, advisors and peers throughout the year, across a number of relevant departments. The All-Party Parliamentary Universities Group, which Universities UK provides the secretariat for, has thrived with a membership of 90 universities, 41 MPs and 12 peers.

Using print, broadcast and social media, we disseminated information to members and the wider public. There were 764,000 unique visitors to the

Universities UK website and 25,000 unique visitors to the USS employer’s website. Three significant campaigns ran in the year, ‘We Are Together’ to promote universities’ work to support the national effort, ‘Getting Results’ to highlight the work of universities in the economic and social recovery from Covid-19 and ‘2020 Made Us’ which aimed to boost the confidence of university students.

The #WeAreTogether international recruitment campaign achieved significant success, reassuring 67% of prospective international students to continue with plans to study in the UK ahead of the 2020-21 academic year, winning the ‘Marketing Campaign of the Year’ category at the PIEoneer Awards 2021. The trustees were delighted that Vivienne Stern, Universities UK International’s Director won the ‘Outstanding Contribution to the Industry’ PIEoneer Award. Universities UK’s International Higher Education Forum (IHEF), which took place in April, has also been shortlisted for ‘Best Leadership Event’ and ‘Best International Event’ at the International Corporate Event (ICE) Awards.

Events and conferences remain an important channel for sharing information and good practice across the sector and providing opportunities for higher education staff and partners to network. After continued restrictions on in-person events our conferences moved online with considerable success attracting a broad range of speakers, paying delegates and sponsorship. There were 46 online events delivered with 8,870 delegates in the year. Topics covered included Political Affairs, Employability and Skills, Enhancing the Student Experience, Global Wales and the successful annual International Higher Education Conference.

Universities UK International worked to secure support for international students post-Brexit and to minimise the negative impacts of Covid-19 on the sector’s international activities. Universities UK International continues to source and administer international opportunities for students and researchers via the UKIERI Mobility Programme: Study in India, the Mitacs-UK Globalink Research Internship Programme and the Newton Fund. The post study work route for international graduates from UK degree programmes was launched giving them the opportunity to stay in the UK to develop their future career and skills.

A full report on our international activities can be found in the Universities UK International Annual Report 2020/21.

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Key outcomes in 2020–21

As a result of the activities in the year Universities UK achieved the following:

Post-18 reforms

Developed a comprehensive political, evidencegathering, impact modelling and influencing strategy in advance of government consultations on funding reforms (expected in autumn 2021). Secured positive commitments on the introduction of a lifelong loan entitlement in the Skills and Post-16 Education Bill.

Brexit priorities

Supported universities to plan for various Brexit scenarios including a potential no deal. Secured association to Horizon Europe as part of the EU UK Trade and Cooperation Agreement and additional funding to support this participation.

Internationalism post-Brexit

Shaped the UK Government’s revised International Education Strategy and influenced the details of the newly established Turing Scheme. The Department for Education announced that over 120 universities, as well as over 200 schools and colleges, have been successful in their bids for funding under the new Turing scheme. This will allow more than 40,000 students to study across the globe, and 48% of places will go to those from disadvantaged backgrounds.

Strengthened member engagement

Enhanced our member engagement across a range of channels and activities securing high levels of member satisfaction in the Universities UK members’ survey. Through Members Meetings, secured access to influential speakers and contributors including Professor Chris Whitty, Sir Patrick Valance, Michelle Donelan MP, Gavin Williamson MP

Addressing wider societal issues

Continued our high-profile work to tackle all forms of harassment and hate crime including sharing good practice and publishing new recommendations on tackling racial harassment and a briefing to tackle antisemitism heavily informed by the Union of Jewish Students and the Community Security Trust. The guidance forms part of our ongoing programme of work to support the sector in addressing harassment in all forms, building upon the ‘Changing the culture’ framework.

Admissions

Supported universities through a challenging A-level results period in summer 2020. Spent the year working on the challenges for the 2021 results, influencing UCAS’ decision on 2021 exams and timetabling of results in England so they were informed by universities’ views.

Published recommendations from the Universities UK Fair Admissions Review and set out the sector’s views in response to the Government’s consultation on Post-Qualification Admissions. In England, UCAS has agreed a long-term commitment with the DfE to access individual-level free school meals data for English 18- and 19-year-old applicants this summer (2021 applicants) and for future admissions cycles. This is a positive step for widening access and contextual admissions that we called for in our Fair Admissions Review.

Managing the risks associated with international partnerships

Published new guidance intended to support universities, enabling them to protect themselves, their staff and students, and manage risks associated with internationalisation, amidst intensified international strategic competition and political polarisation and backlash against globalisation.

Political influence

Tackling the climate emergency

Established a task and finish group to maximise sector action in responding to the climate emergency in advance of COP26. Over two-thirds of members have participated in roundtables leading to the production of Universities UK wide policy positions to strengthen the collective voice of our members on how the higher education sector is responding to the climate emergency and what further action will be taken beyond COP26.

Expanded our political influence with regular ministerial meetings, the highest levels of membership of the All-Party Parliamentary University Group, regular parliamentary mentions and a 91% increase in the number of parliamentary questions secured on key issues for our members.

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TRUSTEES’ REPORT

Free speech and academic freedom

Free speech and academic freedom continue to feature on the political agenda. Universities UK has convened an Advisory Group to help shape our response to the Free Speech (Higher Education) Bill.

Placing universities at the heart of recovery, skills, knowledge and opportunity

Universities have played a key role in helping the nations, economy and communities respond to the immediate challenges of Covid-19, building upon and deepening local partnerships. The publication of an ambitious and compelling vision for UK higher education places universities at the heart of efforts to create a more equal, healthier, and sustainable future. In September 2020 Universities UK published a report commissioned by the Industrial Strategy Council illustrating the contribution of further and higher education to the UK’s prosperity.

Research and innovation

Secured extensive sector support for the Knowledge Exchange Concordat. Shaped the development of the government’s Innovation Strategy and championed the role of universities in driving innovation. Taken on the secretariat role for the Researcher Development Concordat and supported the Research Integrity Concordat annual forum.

Governance and membership

In the year Universities UK welcomed three new member institutions. Following the 2018 Governance Review, revised Articles of Associations were adopted at the AGM and the changes to the Board completed finalising the recommendations from the review. Extra Board meetings convened to discuss the significant issues for the sector in the year, the pandemic and USS.

Value

Publication of a progress review on behalf of the UK Standing Committee for Quality Assessment on universities’ efforts to protect the value of their qualifications. Formation of a Universities UK advisory group to develop a charter to demonstrate the sector’s commitment to consistency and transparency in processes to tackle low value courses.

Supporting creative arts

The work supporting the small and specialist institutions continues with the Specialist Institutions Forum (SIF) and Conservatoires UK continuing to meet and tailoring policy responses and the Covid-19 response to their specific needs.

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Responding to Covid-19

Throughout the pandemic, we have organised and prioritised work focusing on gathering evidence and arguments from members and stakeholders, liaising with UK government departments, and coordinating efforts to secure support for institutions and students. Key outcomes include:

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TRUSTEES’ REPORT

Publications

In 2020–21 our work included production of evidence-based outputs on the most significant issues facing the higher education sector, to influence policy making, support universities to enhance positive impact, share effective approaches to common challenges and to help our members to achieve their overall missions and objectives. These outputs included:

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TRUSTEES’ REPORT

Activities for members - Universities Scotland

Universities Scotland represents the Principals and Directors of Scotland’s 19 higher education institutions, developing higher education policy and campaigning on issues where members have a shared interest. 2020–21 was another extraordinary year for Universities Scotland, dominated by continued management of the Covid emergency and positioning universities as a force that will drive postpandemic recovery.

Key achievements over the year include:

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Activities for members - Universities Wales

As well as supporting Welsh universities throughout the pandemic and working collaboratively with Welsh Government in tackling the challenges posed by Covid-19, Universities Wales also delivered across a range of priorities including the 2021 election, international activity, research collaboration and civic mission.

for the state. We are also seeing an increase in university-to-university partnerships in Vietnam as well as some very significant gains in applications from the US. Global Wales recently adopted the European Union as its fourth priority market.

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Activities for members - Health

The Council of Deans of Health

As in 2019–20, the sector’s response to Covid heavily influenced the Council’s policy work, with key achievements in the following areas:

On the 1 August 2021, Council of Deans of Health successfully completed the transition to be an independent organisation. The trustees of Universities UK wish the Council every success as an independent organisation.

Medical Schools Council (MSC)

The academic year 2020–21 was marked by the continued societal upheaval caused by the Covid-19 pandemic. MSC has been widely praised for the leadership it provided to the sector and the extremely effective guidance it provided to protect patients, students and staff. Last year’s annual report documented the range and effectiveness of the activities undertaken by the MSC team at the height of the crisis. Such work continued into this academic year through repeated lockdowns and issues created by the disruption to the admissions’ system.

The year was also marked by extensive work with the GMC around the Medical Licensing Assessment. The proposal submitted by the MSC on behalf of all the UK medical schools was accepted by the GMC Council in June 2021. The medical schools will collectively set and administer a common test of applied knowledge to be regulated by the GMC. Plans are in hand to pilot the process over the next three years with a commitment to go live for those graduating in the academic year 2024–25.

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USS pensions reform

Universities UK has a legal responsibility to represent employers within the USS pensions scheme. This year saw work to progress the 2020 valuation process. This included sector-wider formal consultation with USS Employers on a range of issues and reform options.

Universities UK as an employer

As an employer of c145 staff, we prioritised the support for staff to work at home in the year and wellbeing, making offices available to access when possible in line with local restrictions. Financially this has been a challenging year with the loss of the covenant from Woburn House Conference Centre, so there were vacancy freezes in place and cuts to non-pay budget lines. The staff group have proved themselves resilient and flexible despite the challenges and the rapidly changing work priorities and the trustees and wider membership are grateful for their hard work and commitment. In July 2021 there was a staff survey, among the highlights include a 98% positive response to the question ‘this organisation cares about its employees’ and 92% of respondents recommending Universities UK as a good place to work.

Looking forward – our priorities for 2021–22

2021–22 will be the penultimate year of Universities UK’s Strategic Plan 2018-23: World Leading Impact. The long term, strategic objectives for the next five years are as outlined on in the strategic report. Support for the sector around Covid-19 recovery will continue, other priorities for the year ahead are:

Student focus

The strategic role of universities in sustainability and climate change

International strategy

Quality of universities

Spending review outcomes

Creating the conditions to be a research and innovation superpower.

Promote what universities do for the economy and recovery:

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Financial review

Review of position at the end of the year

The statement of financial activities for the year is set out on page 25 and the balance sheet on page 26 of the financial statements.

Consolidated income and expenditure for the year and position at the end of the year are summarised in the table below.

Income
Expenditure
Surplus
Transfers
Net movement in funds
Funds brought forward
Funds carried forward		 Unrestricted
activities
£’000
Restricted
activities
£’000
Total
2021
£’000
Total
2020
£’000
8,337
5,363
13,700
14,063
(8,062)
(5,244)
(13,306)
(13,707)
275
119
394
356
2
(2)
-
-
277
117
394
356
2,788
3,391
6,179
5,823
3,065
3,508
6,573
6,179

A consolidated surplus of £394,000 is reported for the financial year ended 31 July 2021 of which £277,000 is unrestricted. £112,000 of this unrestricted surplus related to a credit movement on the pension deficit recovery plan provision and £28,000 to credit movements on the annual leave accrual (FRS 102 adjustments). Excluding these items, the unrestricted surplus for the year ended 31 July 2021 stood at £137,000.

Unrestricted income in 2021 was down £712,000 year-on-year at £8,337,000 (2020: £9,049,000).

Restricted income of £5,363,000 was higher than the 2020 level of £5,014,000.

The organisation’s net assets were £6,573,000 at 31 July 2021 (2020: £6,179,000). A high proportion of these are represented by cash.

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Principal funding sources

Membership subscriptions provides 74% of the unrestricted income, and the balance comes from covenant income (12%), conference receipts (7%), grants and contracts (4%) and investment and other income (3%). This income is used principally to support charitable activities, but also the cost of charged-for goods and services. Universities UK does not fundraise from the public and is therefore not registered with the Fundraising Regulator.

Significant events affecting financial performance and position

Covid-19 had a significant impact on income in the year. Continued restrictions on trading with the Health Protection (Coronavirus, Business Closure) (England) Regulations 2020 meant that Woburn House Conference Centre did not trade for most of the year, with limited activity after restrictions on indoor gatherings were relaxed in May 2021. There was considerable focus on costs in the year, with vacancy and pay freeze, cuts to non-pay lines and the benefit of savings from continued closure of offices, no business travel and using the Coronavirus Job Retention Scheme.

Impact of material pension liability

The deficit recovery plan for the USS pension scheme first agreed in 2017 and updated following the 2018 valuation has, as a result of Financial Reporting Standard (FRS) 102, required a provision for the extra employer pension contributions required over the life of the plan. This in turn has reduced reserves, though without any immediate impact on the cash position or on financial risk. The impact is dealt with in more detail in relation to the effect on performance against the reserves policy.

Fixed assets

The changes to intangible and tangible fixed assets during the year are shown in notes 12 and 13 to the financial statements.

Other interests

The long leasehold interest in Woburn House is owned by CVCP Properties plc, a business set up by the membership in 1995 for the purpose of acquiring the building. CVCP Properties plc also owns a central London residential flat which is let out at commercial rates with the revenue contributing to the annual covenant to Universities UK.

Investment policy

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

The Board of Trustees does not consider that it is necessary to accumulate and invest income for the longer term. Its investment policy is therefore to retain surplus funds as cash and place them on bank deposit and treasury reserve at the best rate consistent with a prudent treasury management policy. As a result, it is not appropriate for the organisation to adopt an ethical investment policy.

Principal risks and uncertainties

The UK Board, supported by the Audit and Risk Committee which carries responsibility for risk management, keeps under review the strategic and operational risks facing the organisation and its subsidiaries together with the programmes and activities that help manage those risks effectively.

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

Specifically, potential policy divisions within the membership and Universities UK’s response to those are monitored via the Board, members’ meetings and the Policy Networks. Operational risks include IT systems and the infrastructure of Woburn House, and strategies are in place to identify and mitigate those risks. Our statutory role as the employers’ representative in the USS pension scheme brings with it risks to our reputation and resources. In the coming year there will be financial risk as we rebuild our commercial income streams following closures due to Coronavirus restrictions on trading.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 19

TRUSTEES’ REPORT

Reserves policy

The trustees have reviewed the requirements for free reserves (unrestricted reserves less any amounts designated or otherwise committed) in the light of the principal strategic and operating risks to the organisation, as outlined above. Despite uncertainty as a result of Covid-19, the nature and likely timing and financial impact of these risks are not considered to be either sufficiently immediate or material to warrant carrying higher reserves. Accordingly, the current target of four to six months of unrestricted expenditure is deemed appropriate as this would ensure sufficient funds are available to meet current commitments if income streams were erratic or exceptional expenditure was incurred.

Universities UK reports its results under the Charity SORP, based on revised UK Generally Accepted Accounting Practice (GAAP): FRS 102. This has a significant impact on free reserves as Universities UK has to provide for the present value of employer contributions to past service deficits in multi-employer defined benefit pension schemes previously accounted for solely as defined contribution schemes, and the cost of untaken staff leave. The trustees have considered the impact of

this and agreed to focus on cash liquidity of assets and risk, so levels of reserves would be stated before and after the provisions required under FRS 102 but using levels before for any provisions for operational and decisions making purposes.

The impact of the reporting regime has been to reduce reported unrestricted reserves by £2m (2020: £2.2m) and to cause Universities UK’s group free reserves to be less than the target range of months of unrestricted expenditure. The trustees do not believe the impact of FRS 102 to be significant as most of the provision is for extra pension payments that will be made over a number of years up to 2028. These will be budgeted for and accommodated as extra expenditure in each individual year. The remaining provision is for the cost of unused leave, higher this year due to delays in taking annual leave as a result of lockdown but we are confident that these balances will be used in the next six months.

The trustees have identified 2021–22 income as a risk and approved a budget based on assumptions which will end the year within the reserves policy. The trustees will monitor performance through the year and take appropriate measures to avoid a significant drop in reserves.

Total unrestricted reserves
Under SORP (12 X A / C)
Less: committed to fxed assets
Under Universities UK policy (12 X B / D)
Months (target)
Free reserves under SORP (A)
Add back: pension and annual leave liabilities
Reserves for Universities UK policy purposes (B)
Total unrestricted expenditure (C)
Exclude: pension and annual leave costs
Unrestricted expenditure for Universities UK policy purposes (D)
Months of expenditure expressed in reserves:
Performance against reserves policy		 2021
£’000
2020
£’000
3,066
2,742
(1,000)
(955)
2,066
1,787
2,063
2,203
4,129
3,990
8,062
8,138
140
1,096
8,202
9,234
3.0
2.6
6.0
4.0 – 6.0
5.2
4.0 – 6.0

Political and charitable donations

The company made no political donations in the year (2020: nil). During the year, charitable donations made in lieu of buying and sending hard copy Christmas cards were £261 (2020: £320).

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

20

TRUSTEES’ REPORT

Statement of Trustees’ responsibilities

The trustees (who are also directors of Universities UK for the purposes of company law) are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company and group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Audit information

So far as each of the trustees at the time the Trustees’ report is approved is aware:

Auditor

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

The Trustees’ report is approved by the trustees of the charity. The Strategic report, which forms part of the Trustees’ report, is approved by the trustees in their capacity as directors in company law of the Charity.

Alistair Jarvis Chief Executive

Professor Paul Layzell Treasurer

5 November 2021

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 21

INDEPENDENT AUDITOR’S REPORT

Independent auditor’s report to the members of Universities UK

Opinion

We have audited the financial statements of Universities UK for the year ended 31 July 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

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

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 22

INDEPENDENT AUDITOR’S REPORT

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 21, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

23

INDEPENDENT AUDITOR’S REPORT

Based on our understanding of the group and the environment in which it operates we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as include the Companies Act 2006 and the Charities Act 2011, and consider other factors such as income tax, payroll tax and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to income and management bias in accounting estimates and judgements. Audit procedures performed by the engagement team included:

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an Auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

Thomas Wilson, Senior Statutory Auditor For and on behalf of Haysmacintyre LLP, Statutory Auditor

10 Queen Street Place London EC4R 1AG

Date: 18 November 2021

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

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 24

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

Consolidated statement of financial activities for the year ended 31 July 2021

Income and expenditure
Income from:
Expenditure on:
Donations
Raising funds
Charitable activities
Charitable activities
Other trading activities
Investments
Other income
Total
Total
Net income
Transfers between funds
Net movements in funds
Total funds at 1 August 2020
Total funds at 31 July 2021		 Notes Total Funds
2021
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total Funds
2020
£’000
2
3
4
7
20
20		 973
12,443
236
31
17
973
7,119
197
31
17
-
5,324
39
-
-
982
12,055
945
65
16
8,337
5,363
13,700
14,063
403
12,903
366
7,696
37
5,207
591
13,116
8,062
5,244
13,306
13,707
275
2
119
(2)
394
-
356
-
277
2,788
117
3,391
394
6,179
356
5,823
3,065
3,508
6,573
6,179

All activities are continuing. There are no gains or losses other than those disclosed in the consolidated statement of financial activities.

The notes on pages 28 to 52 form part of these financial statements.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

25

BALANCE SHEETS

Balance sheets – 31 July 2021

Fixed assets
Intangible fxed assets
Tangible fxed assets
Investments
Funds and reserves
Restricted funds
Unrestricted funds
Non-charitable trading funds
Total funds
Current assets
Debtors
- due within one year
- due after more than one year
Investments – short term deposits
Cash at bank and in hand
Liabilities
Creditors: amounts falling
due within one year
Net current assets
Total assets less current liabilities
Creditors: amounts falling due
after one year
Total net assets		 The Group
Universities UK
Notes 2021
£’000
2021
£’000
2020
£’000
2020
£’000
12
13
14
20
15
16
18		 111
126
289
327
600
600
26
394
600
9
346
600
1,020
1,000
1,053
955
1,661
1,758
900
750
1,868
750
2,618
5,152
2,332
2,561
3,987
943
2,508
5,587
2,199
2,086
750
2,836
3,552
897
10,102
7,491
10,294
7,285
(2,716)
(3,136)
(3,038)
(2,672)
7,064
8,084
(1,905)
4,775
5,775
(1,638)
7,158
8,211
(1,638)
4,613
5,568
(1,905)
6,179
4,137
6,573
3,663
1,071
3,508
3,066
3,066
-
(1)
3,391
2,742
46
921
2,742
-
6,179
4,137
6,573
3,663

Gross income for the parent charity was £11,742,000 and gross expenditure was £11,268,000, resulting in a surplus of £474,000 (2020: surplus of £795,000).

Approved by the Board of Directors and authorised for issue on 5 November 2021.

Signed on their behalf:

Alistair Jarvis Paul Layzell Chief Executive Treasurer Company Number: 2517018

The notes on pages 28 to 52 form part of these financial statements.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

26

CONSOLIDATED CASH FLOW STATEMENT

Consolidated cash flow statement – year ended 31 July 2021

Net income for the year
Cash fows from operating activities
Interest income
Depreciation and amortisation charges
Cash fows for investing activities
Decrease in debtors
Decrease in creditors
Interest income
Purchase of fxed assets
Net cash used in operating activities
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 August
Cash and cash equivalents at 31 July
Cash and cash equivalents at 31 July is made up of:
Investments – short term deposits
Cash at bank and in hand
Total cash and cash equivalents
a Reconciliation of net expenditure to net cash fow from
operating activities
b Statement of cash fows		 2021
£’000
2020
£’000
(31)
394
145
110
(169)
(65)
356
135
796
(1,394)
449
(172)
449
31
(178)
(172)
65
(94)
(147)
(29)
302
(201)
7,484
7,685
7,786
7,484
5,587
2,199
5,152
2,332
7,786
7,484
Cash
Analysis of changes in net funds:
Cash equivalents
Total net funds		 At 31 July
2021
£’000
Cash
fows
£’000
At 1
August 2020
£’000
2,199
5,587
(133)
2,332
435
5,152
7,786
302
7,484

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

27

NOTES TO THE FINANCIAL STATEMENTS

Notes to the financial statements – year ended 31 July 2021

1. Principal accounting policies

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Universities UK meets the definition of a public benefit entity under FRS 102. It is a company limited by guarantee and is incorporated in the UK. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The consolidated financial statements incorporate the results of Universities UK and its subsidiaries, Woburn House Conference Centre Limited, Medical Schools Council and MSC Assessment. No separate Universities UK statement of financial activities has been prepared, as permitted by Section 408 of the Companies Act 2006.

The liability in respect of the pension deficit recovery plan has been calculated using key assumptions concerning future payroll growth and the discount rate (see note 24).

b. Preparation of the accounts on a going concern basis

c. Income

Income from donations and grants (including government grants) is recognised when there is evidence of entitlement, receipt is probable and its amount can be measured reliably.

Subscriptions are recognised over the period to which they relate.

Conference fee and other trading income is recognised on an accruals basis.

Investment income is credited in the period in which it is earned.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 28

NOTES TO THE FINANCIAL STATEMENTS

d. Expenditure

Direct costs, including directly attributable salaries, are allocated on the basis of time to the key strategic areas of activity.

Overheads and other salaries are allocated between activities on the bases of usage, ie the same basis as expenditure incurred directly in undertaking the activity.

Governance costs are those incurred in connection with the management of Universities UK’s assets, the organisation’s administration and compliance with constitutional and statutory requirements.

Unconditional grants payable are charged to the statement of financial activities in the year in which they are communicated to the recipient as at that time a valid expectation has been created that the grants will be paid. Conditional grants are charged on a similar basis when conditions fall outside the control of the charity. Any unpaid amounts are shown as liabilities at the balance sheet date.

Leasehold improvements assets are stated at cost less depreciation. A full year’s depreciation is charged in the year the asset is brought into use and none in the year of disposal.

Depreciation has been calculated at the following annual rates, in order to write off each asset over its estimated useful life.

Furniture and equipment - over four years Office technology (including website development) - over three years Leasehold improvements - over the life of the lease

Universities UK capitalisation policy is to capitalise individual assets costing over £2,500.

f. Investments

Investments held as fixed assets are stated at cost, as permitted by FRS 102.

Surplus cash funds are held on deposit for up to a year in order to achieve a better rate of interest.

h. Financial instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Liabilities are recognised on an accruals basis. Loans receivable are measured initially at fair value and are measured subsequently at amortised cost using the effective interest method.

i. Creditors and provisions

j. Debtors

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

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 29

NOTES TO THE FINANCIAL STATEMENTS

k. Operating leases

l. Employee benefits

Short term benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Employee termination benefits

Termination benefits are accounted for on an accruals basis and in line with FRS 102.

m. Pensions

Universities UK participates in the Universities Superannuation Scheme (USS) and Superannuation Arrangements of the University of London (SAUL).

Both these pension schemes are defined benefit, multi-employer schemes (contracted out of the State Second Pension [S2P] up until 31 March 2016), with the assets held in separate trustee-administered funds. The funds are valued every three years by a professionally qualified independent actuary using the projected unit method, the rates of contribution payable being determined by the trustees on the advice of the actuary. In the intervening years the actuary reviews the progress of the scheme.

Because of the mutual nature of the schemes, the schemes’ assets are not hypothecated to individual institutions and scheme-wide contribution rates are set. Universities UK is therefore exposed to actuarial risks associated with members employed at other participating employers in the schemes and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as required by Section 28 of FRS 102 “Employee benefits”, accounts for the schemes as if they were defined contribution schemes.

As a result, the amount charged to income and expenditure through the Statement of Financial Activities represents the contributions payable to the schemes in respect of the accounting period.

Given the mutual nature of the schemes, participating employers are not expected to be liable for any other current participating employer’s obligations, but in the event of an insolvency of any participating employer within each scheme, an amount of any pension shortfall which cannot otherwise be recovered in respect of that employer, may be spread across the remaining participating employers and reflected in the next actuarial valuation.

Since Universities UK has entered into an agreement to participate in a deficit recovery plan for USS, it now also recognises a liability under FRS 102 for the future contributions payable that arise from this agreement to the extent that they relate to the deficit and the resulting expense in the statement of financial activities.

As SAUL had a Technical Provisions surplus at 30 April 2021 there is no defined benefit liability to be recognised by Universities UK.

n. Universities Scotland and Universities Wales

The funds of these National Councils are included within the designated unrestricted funds of Universities UK. Universities Scotland is a recognised body in Scotland and separate accounts for it are prepared and filed with the Office of the Scottish Charity Regulator.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 30

NOTES TO THE FINANCIAL STATEMENTS

2. Donations

CVCP Properties plc is a company owned by 100 higher education institutions, whose executive heads are members of Universities UK. The company owns two leasehold properties and the net profits from its activities are covenanted annually to Universities UK.

Covenanted income receivable during the year from CVCP Properties plc was £973,399 (2020: £981,888). Other transactions with CVCP Properties plc are included in note 26.

3. Income from charitable activities

Subscriptions from membership
Grants and contracts
Conference income		 Total
2020
£’000
Restricted
Funds
£’000
Unrestricted
Funds
£’000
Total
2021
£’000
Restricted
Funds
£’000
Unrestricted
Funds
£’000
8,398
2,250
6,148
8,714
2,514
6,200
2,966
2,584
382
3,104
2,761
343
691
141
550
625
49
576
12,055
4,975
7,080
12,443
5,324
7,119

See notes 5 and 6 for further analysis.

4. Other trading activities

Trading activities relate principally to Woburn House Conference Centre Ltd, a subsidiary. They are stated net of intra-group trading.

5. Subscriptions from membership

Universities UK
Universities Scotland
Universities Wales
Medical Schools Council
MSC Assessment
Council of Deans of Health		 Total
2020
£’000
Restricted
Funds
£’000
Unrestricted
Funds
£’000
Total
2021
£’000
Restricted
Funds
£’000
Unrestricted
Funds
£’000
5,465
402
5,063
5,526
411
5,115
631
-
631
691
60
631
454
-
454
607
153
454
762
393
693
762
393
693
-
-
-
720
433
737
720
433
737
-
-
-
8,398
2,250
6,148
8,714
2,514
6,200

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 31

NOTES TO THE FINANCIAL STATEMENTS

6. Grants and contracts

Higher Education Funding
Council for Wales
Health Education England
Research England
British Council
Scottish Funding Council
HMRC
Ofce for Students
Department of Health &
Social Care
Burdett
All Party Parliamentary
University Group
Conservatoires UK
Scottish Government
UK Research and Innovation
NCUK
European Commission
UPP Foundation
Other organisations
Department for Business,
Energy & Industrial Strategy *		 Total
2020
£’000
Restricted
Funds
£’000
Unrestricted
Funds
£’000
Total
2021
£’000
Restricted
Funds
£’000
Unrestricted
Funds
£’000
1,046
441
370
298
123
38
71
49
62
48
35
42
-
25
21
24
44
229
1,046
441
370
100
123
-
71
49
62
6
23
42
-
25
21
24
15
166
-
-
-
198
-
38
-
-
-
42
12
-
-
-
-
-
29
63
1,174
508
440
188
107
86
75
70
62
46
43
41
30
15
16
-
109
94
1,174
508
440
8
107
-
75
70
62
4
29
41
30
15
16
-
88
94
-
-
-
180
-
86
-
-
-
42
14
-
-
-
-
-
21
-
2,966
2,584
382
3,104
2,761
343

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

32

NOTES TO THE FINANCIAL STATEMENTS

7. Total resources expended

Cost of raising funds
Charitable activities
Activities for members
Split of core activities
Core (see split below)
England, NI and UK-wide
Conferences
International
Medical & health
Universities Wales
Exam delivery
Universities Scotland
Total activities for members
Total resources expended
Total resources expended		 Total
2020
£’000
Support
costs
£’000
Direct
costs
£’000
Total
2021
£’000
Support
costs
£’000
Direct
costs
£’000
591
9,646
559
1,817
1,094
24
2,437
93
250
136
567
7,209
466
1,567
958
403
9,945
367
2,106
485
43
2,397
95
263
68
360
7,548
272
1,843
417
13,116
2,916
10,200
12,903
2,823
10,080
13,707
2,940
10,767
13,306
2,866
10,440
5,356
2,719
627
944
1,954
124
100
259
3,402
2,595
527
685
5,573
2,743
614
1,015
1,860
139
88
310
3,713
2,604
526
705
9,646
2,437
7,209
9,945
2,397
7,548

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

33

NOTES TO THE FINANCIAL STATEMENTS

8. Support costs allocations

Trading activities: costs of
goods sold and other costs
Charitable activities
Core
Conferences
Medical and health
Exam delivery
Total resources		 Finance,
HR, IT
£’000
Deprecia-
tion
£’000
Govern-
ance
£’000
Premises
£’000		 Total
2021
£’000
Other
£’000
13
767
31
106
21
2
101
4
16
-
3
148
6
32
5
20
1,015
40
100
25		 43
2,397
95
263
68
5
366
14
9
17
938
123
194
1,200		 2,866
411
Trading activities: costs of
goods sold and other costs
Charitable activities
Core
Conferences
Medical and health
Exam delivery
Total resources		 Finance,
HR, IT
£’000
Deprecia-
tion
£’000
Govern-
ance
£’000
Premises
£’000		 Total
2020
£’000
Other
£’000
7
748
29
85
30
1
80
3
16
-
2
159
6
31
5
11
1,021
39
80
33		 24
2,437
93
250
136
3
429
16
38
68
899
100
203
1,184		 2,940
554
Governance costs are made up of
Staf costs
External audit
Other professional fees
Meeting costs and expenses		 the following: Total
2020
£’000
Total
2021
£’000
149
23
29
2
151
24
19
-
203
194

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

34

NOTES TO THE FINANCIAL STATEMENTS

Auditor’s remuneration:
Other direct costs include:
For audit services
For other services
Prior year fees: other services
Operating lease rentals:
Land and buildings
Ofce and equipment		 Total
2020
£’000
Total
2021
£’000
26
6
-
1,033
10
27
8
-
977
8

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

35

NOTES TO THE FINANCIAL STATEMENTS

9. Analysis of staff costs

Total staf costs including full and part-time employees were:
Wages and salaries
Social security costs
Other pension costs		 Total
2020
£’000
Total
2021
£’000
6,246
669
332
6,138
672
1,627
7,247
8,437

‘Other pension costs’ includes a £126,000 credit relating to the movement on the USS pension deficit funding liability (2020: credit of £1,264,000).

The average number of employees throughout the year was:
Charitable activities
Support staf
Trading activities – Woburn House Conference Centre Limited		 Total
2020
£’000
Total
2021
£’000
121
20
4
122
22
4
145
148

The number of employees whose emoluments exceeded £60,000 (excluding employer’s pension contributions) was 28 (2020: 28).

£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£120,001 - £130,000
£150,001 - £160,000
£160,001 - £170,000		 2020
no.
2021
no.
9
10
3
4
1
-
1
6
12
1
7
1
1
-

The total employer pension contributions for these staff were £462,288 (2020: £453,998).

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

36

NOTES TO THE FINANCIAL STATEMENTS

10. Trustees’ emoluments and emoluments of other key management personnel

No trustees received any remuneration for their services.

During the year no travel and accommodation expenses were reimbursed to trustees (2020: one trustee - £120).

The total employee benefits of the Senior Leadership Team who are considered to be key management personnel (in addition to trustees) was:

Wages and salaries
Social security costs
Other pension costs		 2020
£’000
2021
£’000
750
85
155
764
87
161
990
1,012

The Senior Leadership comprises the Chief Executive and Directors of Policy, Member Services, Universities UK International, Communications and External Affairs, Operations, Universities Scotland and Universities Wales.

11. Taxation

The charity is exempt from corporation tax under Sections 466-497 of the Corporation Taxes Act 2010 as all its income is applied to charitable purposes.

12. Intangible fixed assets

Cost
Depreciation
Net book value
At 1 August 2020
At 1 August 2020
At 31 July 2021
Additions
Charge for year
At 31 July 2020
At 31 July 2021
At 31 July 2021
Website development and software		 Universities UK
£’000
Group
£’000
249
133
376
147
382
523
240
31
350
47
271
397
111
126
9
26

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

37

NOTES TO THE FINANCIAL STATEMENTS

13. Tangible fixed assets

Cost
Depreciation
Group
At 1 August 2020
At 1 August 2020
Additions
Charge for year
Net book value
Written of
Written of
At 31 July 2021
At 31 July 2021
At 31 July 2021
At 31 July 2020		 Total
£’000
Ofce
Technology
£’000
Furniture
& Equipment
£’000
Leasehold
Improvements
£’000
1,390
31
(24)
105
24
(24)
598
7
-
687
-
-
1,397
105
605
687
996
98
(24)
94
29
(24)
540
5
-
362
64
-
1,070
99
545
426
327
6
60
261
394
11
58
325
Cost
Depreciation
Universities UK
At 1 August 2020
At 1 August 2020
Additions
Charge for year
Net book value
Written of
Written of
At 31 July 2021
At 31 July 2021
At 31 July 2021
At 31 July 2020		 Total
£’000
Ofce
Technology
£’000
Furniture
& Equipment
£’000
Leasehold
Improvements
£’000
1,168
19
(20)
87
12
(20)
394
7
-
687
-
-
1,167
79
401
687
822
76
(20)
76
7
(20)
384
5
-
362
64
-
878
63
389
426
289
16
12
261
346
11
10
325

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

38

NOTES TO THE FINANCIAL STATEMENTS

14. Investments held as fixed assets

CVCP Properties plc ordinary shares of £1 each
CVCP Properties plc preference shares of £1 each
Total
Group and Universities UK		 Total
2020
£’000
Total
2021
£’000
50
550
50
550
600
600

CVCP Properties plc is an unquoted company and the shares are stated at cost.

15. Debtors

Trade debtors
Amounts due from subsidiary undertakings
Other debtors
Prepayments and accrued income
Loan		 Universities UK
Group
2020
£’000
2021
£’000
2020
£’000
2021
£’000
213
441
1,002
430
750
160
305
994
352
750
380
-
1,002
486
750
378
-
994
386
750
2,836
2,561
2,618
2,508

The £750,000 loan is due for repayment after more than five years, but no later than 25 November 2026. The loan is secured by way of a fixed charge over the Woburn House building. Interest is payable on the loan at 3% above National Westminster Bank plc base rate.

16. Creditors: amounts falling due within one year

Trade debtors
Amounts due to subsidiary undertakings
Taxation and social security
Other creditors
Accruals
Deferred income		 Universities UK
Group
2020
£’000
2021
£’000
2020
£’000
2021
£’000
468
-
235
153
656
1,160
281
3
265
148
851
1,168
583
-
235
153
893
1,174
480
-
265
148
954
1,289
2,672
2,716
3,038
3,136

At the year end outstanding pension contributions amounted to £147,956 (2020: £149,948).

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 39

NOTES TO THE FINANCIAL STATEMENTS

17. Deferred income

Brought forward
Released in the year
Deferred in the year
Carried forward		 Universities UK
Group
2020
£’000
2021
£’000
2020
£’000
2021
£’000
1,449
(1,442)
1,153
1,160
(1,095)
1,103
1,510
(1,503)
1,167
1,174
(1,109)
1,224
1,160
1,168
1,174
1,289

18. Creditors: amounts falling due after more than one year

Pension defcit funding payments in relation to USS
Group and Universities UK
See note 24 for further details regarding these liabilities.		 Total
2020
£’000
Total
2021
£’000
1,905
1,638

19. Operating lease commitments

The group and company have the following future minimum lease payments under non-cancellable operating leases for each of the following periods:

Land and buildings:
Within one year
Between one and fve years
After fve years
Ofce equipment:
Within one year
Between one and fve years
Group and Universities UK		 Total
2020
£’000
Total
2021
£’000
1,056
475
27
7
13
413
78
6
6
8
1,578
511

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

40

NOTES TO THE FINANCIAL STATEMENTS

20. Movement in funds

Medical Schools Council
University Hospital Association
Dental Schools Council
Pharmacy Schools Council
Association of Dental Hospitals
Summer School
MSC Assessment
Council of Deans of Health
Universities UK International
SIEM
Short-term mobility
BEIS ODA
Global Wales II
Universities Wales International
WIN
US International
Scotland is Now
Pensions reform
Civic Mission
Algorithms
KE Concordat
Research development Concordat
Student MH partnerships
OFS – Analytics
Other
Non-charitable trading funds
Group – total funds
Restricted funds
Unrestricted funds
Investment fund
Universities Scotland / Universities Wales
General funds		 At 31
July 2021
£’000
Transfers
£’000
Resources
expended
£’000
Incoming
resources
£’000
At 1 Aug
2020
£’000
600
584
1,882
-
431
(429)
-
(1,608)
(6,247)
-
1,182
6,995
600
579
1,563
1,257
206
159
91
18
82
623
565
-
-
-
11
144
120
130
87
-
-
-
-
-
-
-
-
15
(5)
(1)
-
-
-
-
(5)
(6)
-
-
-
-
-
15
-
-
-
-
-
-
-
-
-
-
-
(606)
(123)
(52)
(69)
(25)
(489)
(466)
(771)
(515)
(15)
(60)
(90)
(1,135)
-
(23)
(107)
(60)
(396)
(36)
(13)
(70)
(30)
(32)
(7)
(54)
641
63
88
76
21
407
513
915
515
15
7
94
1,123
20
153
89
60
396
14
-
29
30
32
7
55
1,227
267
123
3,066
2
(7,855)
8,177
2,742
84
22
164
581
427
-
-
53
7
156
85
-
105
-
-
22
13
41
-
-
-
14
3,508
(1)
(2)
-
(5,244)
(207)
5,363
160
3,391
46
6,573
-
(13,306)
13,700
6,179

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

41

NOTES TO THE FINANCIAL STATEMENTS

Restricted funds
Medical Schools Council
University Hospital Association
Dental Schools Council
Pharmacy Schools Council
Association of Dental Hospitals
Summer School
MSC Assessment
Council of Deans of Health
Universities UK International
Outward mobility
SIEM
Short-term mobility
BEIS ODA
Global Wales II
Universities Wales International
Vietnam Partnership
South Africa
US International
Pensions reform
Business Readiness Fund
Welsh Governance
Civic Mission
Algorithms
KE Concordat
Student MH partnerships
OFS-Analytics
Other
Non-charitable trading funds
Group – total funds
Unrestricted funds
Investment fund
Universities Scotland / Universities Wales
General funds		 At 31
July 2020
£’000
Transfers
£’000
Resources
expended
£’000
Incoming
resources
£’000
At 1 Aug
2019
£’000
600
579
1,563
-
438
(431)
-
(1,580)
(6,107)
-
1,178
7,385
600
543
716
1,227
267
123
84
22
164
581
427
-
-
-
53
7
156
85
3
-
105
-
-
-
22
13
41
-
-
11
(4)
(1)
-
-
-
-
(11)
(6)
-
-
-
-
-
-
15
-
-
-
-
-
-
-
-
-
-
-
-
(510)
(123)
(82)
(83)
(18)
(207)
(1,105)
(891)
(395)
(80)
(21)
(12)
(96)
(1,020)
-
(62)
(24)
(120)
(385)
(110)
(59)
(21)
(20)
(29)
(28)
(16)
(52)
549
123
80
102
21
360
433
912
395
24
21
65
85
909
-
60
(32)
116
385
110
59
43
33
70
28
16
47
1,192
268
125
65
19
11
1,264
412
-
56
-
-
18
267
70
5
56
109
-
-
-
-
-
-
-
-
16
2,742
7
(7,687)
8,563
1,859
3,391
46
(7)
-
(5,569)
(451)
5,014
486
3,953
11
6,179
-
(13,707)
14,063
5,823

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

42

NOTES TO THE FINANCIAL STATEMENTS

Transfers during the year between funds relate to contributions made from unrestricted monies to restricted funds for specific projects, where there are insufficient restricted funds available to meet expenditure or where the charity is committed to contributing towards projects from its own resources.

Background information on each of the restricted funds is set out below:

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 43

NOTES TO THE FINANCIAL STATEMENTS

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 44

NOTES TO THE FINANCIAL STATEMENTS

21. Allocation of net assets between funds

The net assets held for various funds are as follows:

Fixed assets
Investments
Current assets
Current liabilities
Net assets
Long-term liabilities
Group total		 2021
Total
£’000
Non-charitable
trading funds
£’000
Unrestricted
funds
£’000
Restricted
funds
£’000
453
600
39
-
400
600
14
-
1,053
10,294
(3,136)
39
172
(62)
1,000
6,528
(2,974)
14
3,594
(100)
8,211
(1,638)
(149)
(150)
4,554
(1,488)
3,508
-
6,573
(1)
3,066
3,508
Fixed assets
Investments
Current assets
Current liabilities
Net assets
Long-term liabilities
Group total		 2020
Total
£’000
Non-charitable
trading funds
£’000
Unrestricted
funds
£’000
Restricted
funds
£’000
420
600
49
-
355
600
16
-
1,020
10,102
(3,038)
49
351
(354)
955
5,977
(2,285)
16
3,774
(399)
8,084
(1,905)
46
-
4,647
(1,905)
3,391
-
6,179
46
2,742
3,391

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

45

NOTES TO THE FINANCIAL STATEMENTS

22. Subsidiaries

Woburn House Conference Centre Limited

The charity owns 100% of the share capital of Woburn House Conference Centre Limited, a company limited by shares (company number 03031467). The company is incorporated in the UK and registered at Woburn House, 20 Tavistock Square, London, WC1H 9HQ.

The £2 cost of the investment has been written down to zero in the accounts of the parent company. The trading activity of Woburn House Conference Centre Limited is the management of the conference centre and meeting rooms at Woburn House. The results and financial position of Woburn House Conference Centre Limited are consolidated with those of Universities UK in preparing the consolidated accounts.

A summary of the trading results for the year ended 31 July 2021 and 2020, and the aggregate amount of the assets, liabilities, share capital and reserves as at 31 July of each year are shown. Audited accounts have been filed with the Registrar of Companies.

Turnover
Cost of sales
Gross proft
Administration costs
Staf costs
Operating (loss) / proft
Interest receivable
(Loss) / proft on ordinary activities before taxation
Taxation
(Loss) / proft on ordinary activities after taxation
Gift aid payment to Universities UK
Retained losses carried forward
Proft and loss account:		 Total 2020
£
Total 2021
£
995,894
(422,103)
91,315
(85,515)
573,791
(53,804)
(186,588)
5,800
(49,772)
(91,975)
333,399
1,331
(135,947)
22
334,730
-
(135,925)
-
334,730
(299,419)
(135,925)
88,556
(35,311)
(47,369)
Fixed assets
Current assets
Creditors: amounts falling due within one year
Net current assets / (liabilities)
Creditors: amounts falling due after one year
Total net (liabilities) / assets
Represented by:
Share capital
Proft and loss account
Balance sheet:		 Total 2020
£
Total 2021
£
48,896
350,970
(353,643)
38,926
171,922
(61,992)
(2,673)
109,930
-
46,223
(150,000)
(1,144)
2
46,221
2
(1,148)
46,223
(1,146)

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

46

NOTES TO THE FINANCIAL STATEMENTS

Medical Schools Council

Universities UK is also the holding member of the Medical Schools Council, a company limited by guarantee (company number 8817383) and registered with the Charity Commission (number 1155370). The company is incorporated in the UK and registered at Woburn House, 20 Tavistock Square, London, WC1H 9HD.

The objects of the Medical Schools Council are to promote, encourage and develop medical schools in the UK and thereby advance education for the public benefit, in particular (but without limitation) medical education, research and training.

A summary of income and expenditure for the year to 31 July 2021 and 2020, and the aggregate amount of the assets, liabilities, share capital and reserves as at 31 July of each year are shown below. Audited accounts have been filed with the Registrar of Companies.

Unrestricted funds and free reserves at 31 July 2021 were £1.3m (2020 free reserves: £1.2m) which is equal to 25 months of unrestricted expenditure (2020: 29 months). This is in line with the organisation’s reserves policy.

Income
Expenditure
Defcit
Income and expenditure account:		 Total 2020
£
Total 2021
£
1,235,290
(1,434,529)
1,296,282
(1,369,999)
(199,239)
(73,717)
Assets
Liabilities
Net assets
Balance sheet:		 Total 2020
£
Total 2021
£
2,183,121
(295,229)
2,216,667
(402,492)
1,887,892
1,814,175

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

47

NOTES TO THE FINANCIAL STATEMENTS

MSC Assessment

The Medical Schools Council is the parent of MSC Assessment, a company limited by guarantee (company number 8578576) and registered with the Charity Commission (number 1153045). The company is incorporated in the UK and registered at Woburn House, 20 Tavistock Square, London, WC1H 9HD.

The objects of MSC Assessment are to advance medical education for the benefit of the public including, without limitation, by the preparation, validation, accreditation, conduct and administration of any tests, examinations or other systems of assessing, evaluating and recording any aspect of medical education and training.

A summary of the income and expenditure for the year to 31 July 2021 and 2020, and the aggregate amount of the assets, liabilities, share capital and reserves as at 31 July of each year is shown below. Audited accounts have been filed with the Registrar of Companies.

Income
Expenditure
Surplus / (defcit)
Income and expenditure account:		 Total 2020
£
Total 2021
£
840,290
(1,115,300)
512,921
(471,404)
(275,010)
41,517
Assets
Liabilities
Net assets
Balance sheet:		 Total 2020
£
Total 2021
£
758,849
(177,278)
737,423
(114,335)
581,571
623,088
  1. Conduit funding
Funds received in advance b/fwd
Amount received
Amount paid out
Funds received in advance c/fwd		 2020
£
2021
£
3,269
3,269
-
-
50,534
(53,803)
3,269
-

Amounts received and dispersed to universities on behalf of the Argentinian Ministry of Education for the scholarship programme BEC.AR, and on behalf of MITACS for Globalink Research Internships.

Certain trustees are Vice Chancellors of institutions in receipt of grants.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

48

NOTES TO THE FINANCIAL STATEMENTS

24. Pension

Universities Superannuation Scheme

The appointment of directors to the Board of USS is determined by USS’s Articles of Association. Four of the directors are appointed by Universities UK; three are appointed by the University and College Union, of whom at least one must be a USS pensioner member; and a minimum of three and a maximum of five are independent directors appointed by the Board. Under the scheme trust deed and rules, the employer contribution rate is determined by the trustee, acting on actuarial advice.

The latest available complete actuarial valuation of the Retirement Income Builder is at 31 March 2018 (the valuation date), which was carried out using the projected unit method.

The 2018 valuation was the fifth valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £63.7 billion and the value of the scheme’s technical provisions was £67.3 billion indicating a shortfall of £3.6 billion and a funding ratio of 95%.

A new deficit recovery plan was put in place as part of the 2018 valuation, which requires payment of 2% of salaries over the period 1 October 2019 to 30 September 2021 at which point the rate will increase to 6%, until 31 March 2028. The 2021 deficit recovery liability reflects this plan. In the prior year, the deficit payments were 5% of salaries up to 30 June 2034. The USS liability is based on staff salary inflation of 2%, and a discount rate of 0.87% (2020: 2%, 0.73%).

A further full valuation as at 31 March 2020 is currently underway. There is still work to be done agreeing the technical provisions assumptions, the extent of future investment risk, the duration of the deficit period and the level of deficit contributions. Rule changes in respect of strengthening the employer covenant are also in progress including restrictions on employer exits, debt monitoring and pari passu arrangements. The valuation has not met its statutory deadline of 30 June 2021. It is anticipated that there will be an increase in the deficit provision and impact on cashflow as a consequence of the new schedule of contributions.

At 31 March 2021, USS had 203,995 (2020: 204,753) members.

Superannuation Scheme of the University of London (SAUL)

SAUL’s statutory funding objective is to have sufficient and appropriate assets to meet the costs incurred by the Trustee in paying SAUL’s benefits as they fall due (the “Technical Provisions”). The Trustee adopts assumptions which, taken as a whole, are intended to be sufficiently prudent for pensions and benefits already in payment to continue to be paid and for the commitments which arise from Members’ accrued pension rights to be met.

The Technical Provisions assumptions include appropriate margins to allow for the possibility of events turning out worse than expected. However, the funding method and assumptions do not completely remove the risk that the Technical Provisions could be insufficient to provide benefits in the future.

A formal actuarial valuation of SAUL is carried out every three years by a professionally qualified and independent actuary. The last actuarial valuation was carried out with an effective date of 31 March 2020. Informal reviews of SAUL’s position, reflecting changes in market conditions, cash flow information and new accrual of benefits, are carried out between formal valuations.

The funding principles were agreed by the Trustee and employers in June 2021 and will be reviewed again at SAUL’s next formal valuation in 2023.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 49

NOTES TO THE FINANCIAL STATEMENTS

At the 31 March 2020 valuation SAUL was 94% funded on its Technical Provisions basis. However, market movements following the valuation date were positive and the Trustee and the Employers agreed to allow for post-valuation experience to 30 April 2021. As SAUL was in surplus on its Technical Provisions basis at that date, no deficit contributions were required. However, the Trustee and the Employers have agreed that the ongoing Employers’ contributions will increase from a rate of 16%.

At 31 March 2021, SAUL had 68,714 (2020: 65,202) members.

Group contributions for the year to 31 July 2021
Active members at 31 July 2021
Group contributions for the year to 31 July 2020
Active members at 31 July 2020		 SAUL
USS
£318,105
55
£325,581
52
£1,321,947
82
£1,277,942
81

25. Financial instruments

2020
£
2021
£
Financial assets measured at amortised cost:
Trade debtors
Cash
Financial liabilities measured at amortised cost		 380
7,484
378
7,786
7,864
8,164
3,534
3,120

Financial assets measured at amortised cost comprise trade debtors and cash.

Financial liabilities measured at amortised cost are creditors.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

50

NOTES TO THE FINANCIAL STATEMENTS

26. Related party transactions

Related party transactions are disclosed for CVCP Properties plc, Advance HE, Higher Education Statistics Agency, Universities and Colleges Admissions Service and Quality Assurance Agency.

Universities UK owns all 550,000 preference shares in CVCP Properties plc and 50,000 (1%) of its ordinary shares. Universities UK is the original subscribing member of the other organisations and members of Universities UK contribute to governance oversight through Board membership and other involvement.

CVCP Properties plc
Advance HE
Quality Assurance Agency		 As at 31 July 2021
Year ended 31 July 2021
Amounts due
to related
parties
£
Amounts due
from related
parties
£
Income from
related parties
£
Purchases from
/ payments to
related parties
£
-
-
-
1,772,591
-
-
996,489
42,584
6,000
911,644
-
-
-
1,772,591
1,045,073
911,644
CVCP Properties plc
Advance HE
Universities and Colleges
Admissions Service
Quality Assurance Agency		 As at 31 July 2020
Year ended 31 July 2020
Amounts due
to related
parties
£
Amounts due
from related
parties
£
Income from
related parties
£
Purchases
from /
payments to
related parties
£
694
-
-
-
1,773,391
-
-
-
1,008,376
55,529
336
3,549
913,248
12,075
-
5,177
694
1,773,391
1,067,790
930,500

27. Members

The charity is incorporated as a private company limited by guarantee having no share capital and, in accordance with the Memorandum of Association, every member is liable to contribute a sum of £1 in the event of the company being wound up. At 31 July 2021 there were 140 members (2020: 137).

28. Post balance sheet event

On the 1 August 2021, the assets, liabilities and activities of the Council of Deans of Health restricted fund were transferred from Universities UK to the Council of Deans of Health, an independent organisation (company number 12341200 and charity numbers 1186780 and SC049982). The fund balance at 31 July 2021 was £565,000.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 51

NOTES TO THE FINANCIAL STATEMENTS

29. Income and expenditure by fund

Income from:
Income and expenditure
Donations
Charitable activities
Other trading activities
Expenditure on:
Investments
Raising funds
Other income
Charitable activities
Total
Total
Net income/(expenditure)
Transfers between funds
Net movements in funds
Total funds at 1 August
Total funds at 31 July		 Total
Funds
2020
£’000
Total
Funds
2021
£’000
Restricted
Funds
2020
£’000
Restricted
Funds
2021
£’000
Unre-
stricted
Funds
2020
£’000
Unre-
stricted
Funds
2021
£’000
Notes
982
973
-
-
982
973
12,055
12,443
4,975
5,324
7,080
7,119
945
236
30
39
915
197
65
16
31
17
9
-
-
-
56
16
31
17
2
3
4
14,063
13,700
5,014
5,363
9,049
8,337
591
13,116
403
12,903
27
5,542
37
5,207
564
7,574
366
7,696
13,707
13,306
5,569
5,244
8,138
8,062
7
356
-
394
-
(555)
(7)
119
(2)
911
7
275
2
356
5,823
394
6,179
(562)
3,953
117
3,391
918
1,870
277
2,788
6,179
6,573
3,391
3,508
2,788
3,065

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

52

Legal and administrative information

Principal and Registered Office Woburn House 20 Tavistock Square London WC1H 9HQ

Solicitors

Bates Wells & Braithwaite 10 Queen Street Place London EC4R 1AG

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

Auditors

Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

Universities UK also has two regional offices:

Universities Scotland Holyrood Park 106 Holyrood Road Edinburgh EH8 8AS

Universities Wales

2 Caspian Point Caspian Way Cardiff Bay Cardiff CF10 4DQ

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 53

Universities UK is the collective voice of 140 wuniversities in England, Scotland, Wales and Northern Ireland. Our mission is to create the conditions for UK universities to be the best in the world; maximising their positive impact locally, nationally and globally. Universities UK acts on behalf of universities, represented by their heads of institution.

Woburn House 20 Tavistock Square London, WC1H 9HQ

T: +44 (0)20 7419 4111 E: info@universitiesuk.ac.uk W: universitiesuk.ac.uk @UniversitiesUK

October 2021 ISBN 978-1-84036-470-5