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2022-07-31-accounts

Annual report and consolidated financial statements Year ended 31 July 2022

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTSCharity Number: 10011271 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 52

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 2

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

Trustees’ report

The trustees present their report and the financial statements for Universities UK for the year ended 31 July 2022.

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

Following the Governance Review the Board has now reduced to 21 members through retirement of the 7 elected policy network replaced by 4 policy leads. 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 2022 were as follows:

Professor Steven West CBE President 2021–2023 Professor Colin Bailey CBE Professor Liz Barnes CBE * Professor Dame Janet Beer DBE Professor Paul Boyle CBE Professor Julia Buckingham CBE * Professor Chris Day *** Professor Jenny Higham Professor Debra Humphris Professor Sir Chris Husbands Professor Paul Layzell CBE *** Treasurer Professor Dame 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 Malcolm Press CBE ** Professor Rama Thirunamachandran Dr Paul Thompson Professor Wendy Thomson CBE Professor Adam Tickell Professor Elizabeth Treasure Chair, Universities Wales & Vice-President Wales Professor Shearer West CBE

* Term of office ended 31 December 2021

** Term of office started 1 January 2022

*** Term of office ended 31 July 2022

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

Professor Nishan Canagarajah Appointed 1 August 2022 Professor Karen Cox Appointed 1 August 2022 Professor Paul Croney OBE Appointed 1 August 2022 Mr Stephen Marston Appointed 1 August 2022, Treasurer 2022–2024 Professor Lisa Roberts Appointed 1 August 2022

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

Vivienne Stern MBE

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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 March 2022. 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 Wales is a national council of the charity Universities UK 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 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.

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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.

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.

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 twoyear 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. The membership also elect a Board member to serve as Treasurer.

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 Board members and 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, Operations, Universities Scotland and Universities Wales.

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, 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.

Principle 1 – organisational purpose

2021–22 was the penultimate 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. The 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.

Principle 2 – leadership

The Board is led by the President, supported by a Board Advisory Committee. Across the Board and the Advisory Committee there are robust debates leading to an agreed direction for the officers and staff to follow. 2021–22 was the first year of the current President’s two-year term, and elections took place in the year for Treasurer and other vacant Board posts terms come to an end. The President has oversight of CEO performance.

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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.

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.

Principle 5 – Board effectiveness

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

By 31 July 2022, Professor Dame Janet Beer DBE (President and Chair of the Board from 2017–19) had served 13 years in a number of different elected roles and was elected by the membership for a further term starting 1 August 2020 as Policy Lead for International.

Principle 6 – equality, diversity, and inclusion

15 board posts are elected from and by the membership, there are challenges with the 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 Board believes that as far as it can within the constraints of an elected Board, reasonable steps are taken to ensure that diversity in its widest sense is prioritised and implemented.

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 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 hosts group Teams calls each featuring 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.

Strategic report

Strategic aims

2021–22 represented the penultimate year of Universities UK’s five-year-strategic plan: 2018–23, World Leading Impact. The long-term, strategic objectives are:

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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.

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

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

The past 12 months have continued to be challenging and full of uncertainty as we have navigated the ongoing pandemic, significant and frequent policy developments, and the crisis in Ukraine. Across our membership, we have seen positive engagement and continued support for our activities.

Covid-19 dominated the political narrative and impacted university activities particularly in the first half of the year. Universities UK dedicated significant resource to supporting universities to manage these challenges. Approaches across the four nations differed with England emerging from restrictions in advance of Wales, Scotland, and Northern Ireland.

More recently, we have seen the Westminster government finally publish its long-awaited post-18 education and funding response with confirmation of a tuition fees freeze in England until 2024–25 and the launch of significant consultations on HE reforms and the Lifelong Loan Entitlement. In the latter half of the year, we have undertaken substantial member engagement, analysis and evidence gathering to formulate our consultation responses alongside extensive communications and political affairs activity to make our position clear. With the change in the Conversative Party leadership and Ministers, we are waiting for further political developments before this work can progress.

Climate change is an ever-growing global challenge and with COP-26 taking place in late 2021 we published a report outlining how the UK’s universities are confronting the climate emergency. We also took steps to increase public understanding of how universities are tackling climate change via a major new strand of our #MadeAtUni campaign.

In the year in which the UK hit its international student recruitment target more than eight years early, we progressed a range of actions to secure the UK’s status as a front runner in international education. We mobilised rapidly in response to the humanitarian crises in Afghanistan and Ukraine, identifying and facilitating how universities could support students and staff in both countries. We also continued our efforts to secure the UK’s status as an associated country in Horizon Europe (or ensure suitable alternative options) and took steps to maximise the success of the Turing scheme.

We continued to expand our political influencing, adapting to a new Westminster Education Secretary part-way through the year and major Cabinet changes in July 2022 and strengthening our links with Westminster and across the devolved parliaments. The All-Party Parliamentary University Group which we provide the secretariat for continues to go from strength to strength.

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 Universities UK members and 81 positive references to our work from parliamentarians and government. Regular meetings with ministers, advisors and peers have happened throughout the year. 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.

Member engagement remains high with regular monthly VC calls, our annual conference at Northumbria University in September which signalled a return to in-person activities and our quarterly members’ meetings. We continued our engagement with new and mid-term vicechancellors through peer-to-peer learning opportunities, and our Specialist Institutions’ Forum (SIF) brought focus and profile to the issues of our small/specialist institutions.

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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 and a PR Week Global Award in May 2022. 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.

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.

This year saw the departure of Universities UK’s Chief Executive Alistair Jarvis CBE after five years in the role and over eight years with the organisation. Alistair steered Universities UK through several seismic developments including the UK leaving the European Union and the lengthy pandemic. Under his leadership, Universities UK has become a stronger organisation with greater impact, higher member engagement and a more focused campaigning approach. We wish Alistair every success in his new role at the University of London.

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 Forum.

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Key outcomes in 2021–22

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

Support for Ukraine

We led the sector’s response to the crisis in Ukraine including establishing a twinning mechanism to support Ukrainian universities, influencing visa and research policy, and informing the roll-out of the Homes for Ukraine programme. The twinning mechanism has led to over 70 formal partnerships between UK and Ukrainian universities.

Student wellbeing

Building on our Stepchange framework and the Student Minds Charter, we published guidance on information sharing to support universities in understanding their options to inform family and friends when students are at risk of suicide or serious self-harm. We have also launched work to tackle the harms associated with student drug use and are engaging closely on the issue of spiking and its impact on students.

Admissions

We published our Fair admissions code of practice to demonstrate the sector’s commitment to maintaining fair and transparent admissions processes. Over 130 universities have now publicly signed up to the code.

Support for concordats

As the secretariat for the Concordat to Support the Career Development of Researchers, we implemented and fostered a new governance structure and strategy. We also launched a new dedicated website to host news, resources and encourage researchers to share their stories.

Universities UK and GuildHE jointly led the development of the Knowledge Exchange Concordat securing considerable commitment from the sector to knowledge exchange.

Protecting degree standards

We published an explainer of how universities are protecting degree standards and tackling grade inflation, showing how universities are delivering on their promise to take significant steps to address concerns about grade inflation. We also published a commitment in England to reversing pandemicrelated grade inflation.

Security

We progressed further work to help universities manage security-related risks including a joint statement with international counterparts committing to support safe, secure, and sustainable internationalisation and supporting universities to understand their legal obligations under the new National Security and Investment Act.

Harassment and hate crime

We continued our efforts to tackle all forms of harassment and hate crime within universities including guidance on tackling staff-to-student sexual misconduct, tackling Islamophobia and anti-Muslim hatred and antisemitism, our #CombatMisconduct Toolkit for Vice-Chancellors and new guidance for universities on sharing the outcomes of harassment complaints.

Supporting international activities

In January 2022, the UK met the recruitment target of 600,000 international students, more than eight years earlier than planned.

Ensuring post-Brexit success

We launched a high-profile campaign, ‘Stick to Science’ urging EU leaders and the UK and Swiss governments to place science collaboration between politics and to agree the UK’s and Switzerland’s association to Horizon Europe.

Value of a degree

We published a report Busting Graduate Jobs Myths showing that employer demand for graduates remains strong and is set to grow further as technology advances and the economy recovers from the pandemic.

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Promoting the impact of universities

We continued a range of public campaigning including our #GettingResults campaign and two strands of our #MadeAtUni campaign focusing on Creative Sparks and Climate Action. Our earlier #WeAreTogether campaign received national recognition when it won a PR Week Global Award. In April, as part of our Climate Action campaign, Universities UK International published a new report on how the climate crisis affects internationalisation.

We partnered with the Committee of University Chairs to commission Britain Thinks to assess public and political perceptions of UK universities. The interim findings show that while perceptions remain broadly positive, there is a risk that anxiety over the cost of living could convince some applicants – those from disadvantaged backgrounds – that studying at university isn’t a priority in difficult economic times. The research also shows that the public and stakeholders primarily see the role of universities as educating students and awarding degrees. Universities UK will be working with the university sector to develop campaigns to increase public and political awareness of the impact of universities and to promote their value to students, graduates, employers, and wider society.

Quality and standards

Universities UK took on the role of UK Standing Committee for Quality Assessment secretariat appointing new chair and deputy, bringing together academics and students as well as partners from across the sector and providing oversight of higher education quality assessment arrangements.

The Framework for Programme Reviews launched to assess the value of university courses to students and wider society

Climate emergency

We highlighted how universities are confronting the climate emergency, via a new report, our #MadeAtUni climate action campaign and through analysis on how the climate crisis affects internationalisation

Promoting academic freedom and freedom of speech

We worked with UK government on the development of the Higher Education (Freedom of Speech) Bill with a view to reducing burden on the sector. Our work was heavily informed by member engagement to identify where further support could help balance academic freedom and freedom of speech with other duties.

Skills

To support Universities UK’s approach to the Lifelong Loan Entitlement launched an advisory group which has had positive engagement with DfE officials and developed principles to support the LLE.

Levelling up

We responded strongly to the Levelling up White Paper by urging government to bridge the funding gap while it sets up the UK Shared Prosperity Fund, publishing a new report on the value of graduates to future economic success and developing a positive vision for universities and levelling up (to be published soon).

Degree awarding caps

Following our 2019 Closing the Gap report, we published Closing the Gap: three years on to assess the sector’s progress in tackling ethnicity degree awarding gaps.

Political influence

Universities UK has continued to be the go-to organisation for government and opposition teams when it comes to influencing higher education policy and being the leading sector voice. leading 24 meetings with Westminster Cabinet members and ministers, alongside eight meetings with Labour shadow ministers. We continued our coverage in parliament through 24 positive public mentions of Universities UK from parliamentarians and government and secured 61 oral and written questions in parliament.

All-Party Parliamentary University Group

We secured the renewal of our contract with the All-Party Parliamentary University Group for another three years (until December 2024). University membership of the group reached a record high of 95 in 2021–22. The group published research on perceptions of fees and student finance while our meetings attracted high profile speakers including Research Minister George Freeman MP and OfS Director for Fair Access, John Blake.

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Coronavirus response

As with 2020–21, much of this year has been heavily affected by the Coronavirus pandemic. The early part of the year started with cautious optimism as students returned to in-person teaching and learning. However, the emergence of the Omicron variant resulted in further restrictions and uncertainty stretching across the winter months. We prioritised influencing official guidance, advocating for a proportionate response, and ensuring members remained informed of developments. Key outcomes included:

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Publications

In 2021–22 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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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. 2021–22 was a year of a high level of activity in a very challenging policy and funding environment. Our work to influence the policy and legislative environment included:

Some key achievements over the course of the year included:

Looking ahead, some key priorities for 2022–23 are expected to be:

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Activities for members - Universities Wales

Universities Wales also delivered across a range of priorities including securing key commitments in the Welsh Government’s regulation and funding reforms and securing further support for programmes including Global Wales and the Wales Innovation Network.

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Activities for members – Health

Medical Schools Council (MSC)

The academic year 2021–22 was marked by the continued societal upheaval caused by the Covid-19 pandemic and the war in Ukraine from 24 February 2022. 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.

USS pensions reform

Our responsibilities for representing employers in the USS pensions scheme continue to be a significant workstream. The year saw the completion of the 2020 valuation and work priorities on USS include developing plans for reforms to secure the sustainability for the scheme in the longer term. Universities UK will work with the USS Trustee and UCU to (1) consider low-cost and flexible member options for members for consultation with employers and members, (2) explore alternative scheme designs including the development of a model for Conditional Indexation and to hear the views of employers and members on these options, and (3) to undertake a substantive governance review of USS. Work will also start on the next valuation due for 31 March 2023. The work to review Universities UK’s role as employer representative in USS has progressed this year with positive discussions between Universities UK and UCEA and it is possible this work can be concluded by the end of 2022–23 period.

Developing organisation capabilities

The Universities UK website was relaunched at the beginning of the year with extensive training for staff on search engine optimisation and tone of voice writing. The website performance has improved as a result of this work, from a score of 62.6 in August 2021 to 82.7 and SEO improved from 79.4 in August 2021 to 86.1. Website visits have increased since launch and external usability testing found that users understood us better after visiting the site and were motivated to return to find out more about us.

As an employer of 150 staff, we moved from home working to re-opening the offices in line with local restrictions. Staff were given the choice to work from home or the office appropriate to the work they were doing. This has meant lower take up of office space than pre-lockdown and so we have looked at alternative uses for our leased space, including a sub-let to another HE organisation who moved into Woburn House on February 2022. We have continued to be responsive and flexible in our approach to hybrid working particularly when Covid infections increased with new variants, prioritising the safety, health and wellbeing of our people.

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Turnover and recruitment increased significantly in the second half of the year. Increased turnover was expected among our early career colleagues once restrictions were lifted. There has been a focus on how we can help our new colleagues develop professional relationships and get established in their new roles with the new hybrid working model. This year we ran three ‘community days’, to bring all London colleagues together in the same physical space with opportunities to work, network and socialise and these have been well received by attendees.

There was an ongoing project to upgrade the IT infrastructure. On premise servers have been migrated to the Azure cloud environment, back up processes refreshed, improvements made to monitoring and helpdesk functions and software implemented for mobile device management. We successfully retained Cyber Essentials Certification.

Financially, challenges continue with rebuilding the events and conference programme and Woburn House Conference Centre priorities to rebuild commercial income streams. Recovery was going well at the start of the year and slowed again with further restrictions introduced in December / January. As we came to the end of the year, the industrial action on the train and underground networks further impacted Woburn House Conference Centre. The financial situation was helped by the final settlement of a business interruption claim for the conference centre closure as a result of the March 2020 lockdown.

At the AGM the members approved some changes to the Articles, to better reflect the relationship with Universities Scotland as a national council of Universities UK. The final stage of this work is to update the registration with OSCR to reflect this which should be completed by the end of 2022.

Looking forward – our priorities for 2022–23

2022–23 will be the final year of Universities UK’s Strategic Plan 2018–23: World Leading Impact. With a new CEO coming into post in September, a priority for the year ahead will be understanding member and stakeholders needs in preparation for the development of a new Strategic Plan. Operational priorities for the year ahead are:

Promote what universities do to address economic and social disparities

Student focus

The strategic role of universities in sustainability and climate change International strategy

Quality of universities

Financial sustainability

Creating the conditions to be a research and innovation superpower.

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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
2022
£’000
Total
2021
£’000
9,412
8,506
17,918
13,700
(11,395)
(8,344)
(19,739)
(13,306)
(1,983)
162
(1,821)
394
11
(11)
-
-
(1,972)
151
(1,821)
394
3,065
3,508
6,573
6,179
1,093
3,659
4,752
6,573

A consolidated deficit of £1,821,000 is reported for the financial year ended 31 July 2022 of which £1,972,000 is unrestricted. £2,408,000 of this unrestricted deficit related to a debit movement on the pension deficit recovery plan provision and £54,000 to credit movements on the annual leave accrual (FRS 102 adjustments). Excluding these items, the unrestricted surplus for the year ended 31 July 2022 stood at £382,000.

Unrestricted income in 2022 increased on last year to £9,412,000 (2021: £8,337,000).

Restricted income of £8,506,000 was higher than the 2021 level of £5,363,000. This increase related to WIN (Welsh Innovation Network) and Global Wales activities.

The organisation’s net assets were £4,752,000 at 31 July 2022 (2021: £6,573,000). The decrease in net assets is due to the increase in the USS pension deficit recovery plan provision. The increased liability was due to the extension of the term of the USS deficit recovery repayment plan from 2028 to 2038, along with an increase in the discount rate and salary inflation rates used in the calculation.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

Principal funding sources

Membership subscriptions provides 68% of the unrestricted income, and the balance comes from covenant income (10%), conference receipts (7%), grants and contracts (3%) and investment and other income (12%). 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 continued to have an impact on commercial income streams in the year, the operation of Woburn House Conference Centre and the events and conference program in the year with the emergence of the Omicron variant and further restrictions impacting income generation activities in December 2021 and January 2022. The industrial action on the rail networks in June and July 2022 also impacted the income of the conference centre.

Impact of material pension liability

The deficit recovery plan for the USS pension scheme first agreed in 2017 and updated following the 2020 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, the organisation does not have 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.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

Reserves policy

The trustees have reviewed the requirements for free reserves (unrestricted reserves less any amounts designated or otherwise committed) in the light of the principal strategic and operating risks to the organisation, as outlined above. The 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 £4.4m (2021: £2.1m) and to cause Universities UK’s group free reserves to be negative and therefore 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 2038. These will be budgeted for and accommodated as extra expenditure for management purposes in each individual year. The remaining provision is for the cost of unused leave, lower this year as staff have used leave accumulated during the Covid-19 pandemic.

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)
Less: designated funds
Add back: pension and annual leave liabilities
Reserves for Universities UK policy purposes (B)
Total unrestricted expenditure (non-designated) (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		 2022
£’000
2021
£’000
1,068
3,066
(954)
(1,000)
(675)
(584)
(561)
1,482
4,417
2,063
3,856
3,545
9,782
6,454
(2,354)
140
7,428
6,594
0
2.8
6.2
4.0 – 6.0
6.5
4.0 – 6.0

Political and charitable donations

The company made no political donations in the year (2021: nil). During the year, charitable donations made in lieu of buying and sending hard copy Christmas cards were £250 (2021: £261)

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

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.

Vivienne Stern MBE Chief Executive

Stephen Marston Treasurer

11 November 2022

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

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 2022 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

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.

ANNUAL REPORT AND CONSOLIDATED 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:

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:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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: 24 November 2022

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

Consolidated statement of financial activities – year ended 31 July 2022

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 2021
Total funds at 31 July 2022		 Notes Total Funds
2022
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total Funds
2021
£’000
2
3
4
7
20
20		 941
15,810
1,094
55
18
941
7,351
1,054
49
17
-
8,459
40
6
1
973
12,443
236
31
17
9,412
8,506
17,918
13,700
520
19,219
481
10,914
39
8,305
403
12,903
11,395
8,344
19,739
13,306
(1,983)
11
162
(11)
(1,821)
-
394
-
(1,972)
3,065
151
3,508
(1,821)
6,573
394
6,179
1,093
3,659
4,752
6,573

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 51 form part of these financial statements.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

Balance sheets – 31 July 2022

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 2022
£’000
2022
£’000
2021
£’000
2021
£’000
12
13
14
20
15
16
18		 99
110
255
283
600
600
130
323
600
115
285
600
1,053
954
993
1,000
3,427
2,968
900
750
1,758
750
2,508
5,587
2,199
4,327
3,994
1,397
3,718
5,594
3,519
1,661
900
2,561
3,987
943
10,294
9,718
12,831
7,491
(4,548)
(5,054)
(3,136)
(2,716)
7,158
8,211
(1,638)
5,170
6,124
(4,018)
7,777
8,770
(4,018)
4,775
5,775
(1,638)
6,573
2,106
4,752
4,137
1,038
3,659
1,068
1,068
-
25
3,508
3,066
(1)
1,071
3,066
-
6,573
2,106
4,752
4,137

Gross income for the parent charity was £15,478,000 and gross expenditure was £17,509,000, resulting in a deficit of £2,031,000 (2021: surplus of £474,000).

Approved by the Board of Directors and authorised for issue on 11 November 2022.

Signed on their behalf:

Vivienne Stern MBE Chief Executive

Stephen Marston Treasurer

Company Number: 2517018

The notes on pages 28 to 51 form part of these financial statements.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

Consolidated cash flow statement – year ended 31 July 2022

Net income for the year
Cash fows from operating activities
Interest income
Depreciation and amortisation charges
Cash fows for investing activities
(Increase) / decrease in debtors
Increase / (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		 2022
£’000
2021
£’000
(55)
(1,821)
141
(1,210)
4,298
(31)
394
145
110
(169)
1,353
449
1,353
55
(81)
449
31
(178)
(26)
(147)
1,327
302
7,786
7,484
9,113
7,786
5,594
3,519
5,587
2,199
9,113
7,786
Cash
Analysis of changes in net funds:
Cash equivalents
Total net funds		 At 31 July
2022
£’000
Cash
fows
£’000
At 1
August 2021
£’000
3,519
5,594
1,320
2,199
7
5,587
9,113
1,327
7,786

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

Notes to the financial statements – year ended 31 July 2022

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 2019) – 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.

a. Critical accounting judgements and estimates

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

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

The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. The trustees reviewed financial position, reserves levels and future plans and this has given the trustees confidence that the charity remains a going concern into the future.

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

d. Expenditure

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

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.

e. Intangible and tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. A full year’s depreciation is charged in the year of acquisition and none in the year of disposal.

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.

The rates of depreciation used per asset class were reviewed in the year, based on the company’s experience of the useful life of its assets. This resulted in a change in useful lives, as shown below.

Before:

Before:
Furniture and equipment - over four years
Ofce technology (including website development) - over three years
Leasehold improvements - over the life of the lease
After:
Furniture and equipment - before four and ten years
Computer equipment - over three years
Website development and IT systems - over four 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.

g. Cash and cash equivalents

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.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

i. Creditors and provisions

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

j. Debtors

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

k. Operating leases

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

l. Employee benefits

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. In line with the group reserves policy, the year end fund balances are expected to be utilised within four to six months.

ANNUAL REPORT AND CONSOLIDATED 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 £940,940 (2021: £973,399). 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
2021
£’000
Restricted
Funds
£’000
Unrestricted
Funds
£’000
Total
2022
£’000
Restricted
Funds
£’000
Unrestricted
Funds
£’000
8,714
2,514
6,200
10,602
4,208
6,394
3,104
2,761
343
4,541
4,251
290
625
49
576
667
-
667
12,443
5,324
7,119
15,810
8,459
7,351

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
2021
£’000
Restricted
Funds
£’000
Unrestricted
Funds
£’000
Total
2022
£’000
Restricted
Funds
£’000
Unrestricted
Funds
£’000
5,526
411
5,115
5,667
411
5,256
691
60
631
756
109
647
607
153
454
2,951
2,460
491
720
433
737
720
433
737
-
-
-
799
429
-
799
429
-
-
-
-
8,714
2,514
6,200
10,602
4,208
6,394

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

6. Grants and contracts

Unrestricted Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds 2022 Funds Funds 2021
£’000 £’000 £’000 £’000 £’000 £’000
Higher Education Funding - 2,427 2,427 - 1,174 1,174
Council for Wales *
Health Education England * - 588 588 - 508 508
Research England * - 566 566 - 440 440
British Council * 124 85 209 180 8 188
Scottish Government * - 86 86 - 41 41
Scottish Funding Council * - 69 69 - 107 107
All Party Parliamentary 43 26 69 42 4 46
University Group
Department of Health & - 65 65 - 70 70
Social Care *
FCDO * - 63 63 - - -
The Wellcome Trust - 50 50 - 4 4
Conservatoires UK 14 30 44 14 29 43
Department for Business, - 41 41 - 94 94
Energy & Industrial Strategy *
Royal College of Nursing Scotland 39 - 39 - - -
Insight Direct UK Ltd - 30 30 - - -
UK Research and Innovation * - 25 25 - 30 30
London Higher 24 - 24 - - -
Ofce for Students * - 23 23 - 75 75
Department for Education * - 16 16 - - -
University of the West of England 14 - 14 - - -
HMRC * 9 - 9 86 - 86
Burdett - - - - 62 62
NCUK - - - - 15 15
European Commission - 4 4 - 16 16
Other organisations 23 57 80 21 84 105
290 4,251 4,541 343 2,761 3,104

ANNUAL REPORT AND CONSOLIDATED 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
2021
£’000
Support
costs
£’000
Direct
costs
£’000
Total
2022
£’000
Support
costs
£’000
Direct
costs
£’000
403
9,945
367
2,106
485
43
2,397
95
263
68
360
7,548
272
1,843
417
520
16,419
443
1,830
527
29
2,726
86
124
52
491
13,693
357
1,706
475
12,903
2,823
10,080
19,219
2,988
16,231
13,306
2,866
10,440
19,739
3,017
16,722
5,573
2,743
614
1,015
1,860
139
88
310
3,713
2,604
526
705
8,799
3,893
2,754
973
2,201
155
142
228
6,598
3,738
2,612
745
9,945
2,397
7,548
16,419
2,726
13,693

ANNUAL REPORT AND CONSOLIDATED 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
2022
£’000
Other
£’000
5
962
30
18
17
11
123
4
3
-
4
158
5
16
11
7
1,050
33
52
21		 29
2,726
86
124
52
2
433
14
35
3
1,032
141
194
1,163		 3,017
487
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
Governance costs are made up of
Staf costs
External audit
Other professional fees
Meeting costs and expenses
Auditor’s remuneration:
Other direct costs include:
For audit services
For other services
Operating lease rentals:
Land and buildings
Ofce and equipment		 the following: Total
2021
£’000
Total
2022
£’000
151
24
19
-
147
28
14
5
194
194
27
8
977
8
28
4
943
10

ANNUAL REPORT AND CONSOLIDATED 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
Termination payments		 Total
2021
£’000
Total
2022
£’000
6,256
672
1,501
8
6,269
696
4,022
55
8,437
11,042

‘Other pension costs’ includes a £2,392,000 debit relating to the movement on the USS pension deficit funding liability (2021: credit of £126,000). The increase in liability is due to the extension of the term of the deficit recovery repayment plan from 2028 to 2038, along with an increase in the discount rate and salary inflation rates.

The average number of employees throughout the year was:
Charitable activities
Support staf
Trading activities – Woburn House Conference Centre Limited		 2021
no.
2022
no.
122
22
4
116
20
5
148
141

The number of employees whose emoluments exceeded £60,000 (excluding employer’s pension contributions) was 32 (2021: 28).

£60,001–£70,000
£70,001–£80,000
£80,001–£90,000
£90,001–£100,000
£100,001–£110,000
£120,001–£130,000
£130,001–£140,000
£150,001–£160,000		 2021
no.
2022
no.
6
12
1
7
-
1
-
1
11
12
-
6
1
-
2
-

The total employer pension contributions for these staff were £511,742 (2021: £462,288).

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

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

No trustees received any remuneration for their services.

During the year £2,556 in travel and accommodation expenses were reimbursed to the institution of one trustee. (2021: nil).

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		 2021
£’000
2022
£’000
764
87
161
782
93
165
1,012
1,040

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
At 1 August 2021
Additions
Assets written of
Depreciation
At 1 August 2021
Charge for year
Assets written of
At 31 July 2022
Net book value
At 31 July 2022
At 31 July 2021
At 31 July 2022
Website development and software		 Universities UK
£’000
Group
£’000
389
23
(215)
530
23
(215)
197
338
274
39
(215)
400
43
(215)
98
228
99
110
115
130

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

13. Tangible fixed assets

Cost
Depreciation
Group
At 1 August 2021
At 1 August 2021
Additions
Charge for year
Net book value
Written of
Written of
At 31 July 2022
At 31 July 2022
At 31 July 2022
At 31 July 2021		 Total
£’000
Ofce
Technology
£’000
Furniture
& Equipment
£’000
Leasehold
Improvements
£’000
1,397
58
(294)
108
40
(76)
602
18
(58)
687
-
(160)
1,161
72
562
527
1,074
98
(294)
88
25
(76)
560
9
(58)
426
64
(160)
878
37
511
330
283
35
51
197
323
20
42
261
Cost
Depreciation
Universities UK
At 1 August 2021
At 1 August 2021
Additions
Charge for year
Net book value
Written of
Written of
At 31 July 2022
At 31 July 2022
At 31 July 2022
At 31 July 2021		 Total
£’000
Ofce
Technology
£’000
Furniture
& Equipment
£’000
Leasehold
Improvements
£’000
1,167
59
(266)
79
41
(63)
401
18
(43)
687
-
(160)
960
57
376
527
882
89
(266)
67
21
(63)
389
4
(43)
426
64
(160)
705
25
350
330
255
32
26
197
285
12
12
261

ANNUAL REPORT AND CONSOLIDATED 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
2021
£’000
Total
2022
£’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
2021
£’000
2022
£’000
2021
£’000
2022
£’000
160
305
994
352
750
1,406
858
968
345
750
378
-
994
386
750
1,627
-
968
373
750
2,561
4,327
2,508
3,718

The £750,000 loan is due for repayment within five years, and 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 creditors
Amounts due to subsidiary undertakings
Taxation and social security
Other creditors
Accruals
Deferred income		 Universities UK
Group
2021
£’000
2022
£’000
2021
£’000
2022
£’000
281
3
265
148
851
1,168
2,349
8
316
154
734
987
480
-
265
148
954
1,289
2,563
-
316
154
948
1,073
2,716
4,548
3,136
5,054

At the year end outstanding pension contributions amounted to £153,771 (2021: £147,956).

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

17. Deferred income

Brought forward
Released in the year
Deferred in the year
Carried forward		 Universities UK
Group
2021
£’000
2022
£’000
2021
£’000
2022
£’000
1,160
(1,095)
1,103
1,168
(1,168)
987
1,174
(1,109)
1,224
1,289
(1,289)
1,073
1,168
987
1,289
1,073

Deferred income comprises membership subscriptions received in advance, grant income deferred when conditions exist which prevent recognition of the income, and income received for future events and conferences.

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
2021
£’000
Total
2022
£’000
1,638
4,018

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
2021
£’000
Total
2022
£’000
413
78
6
6
8
627
2,045
-
3
4
511
2,679

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

20. Movement in funds

Unrestricted funds
Investment fund (see note 14)
Universities Scotland /
Universities Wales (see note 1(n))
General 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
Ukraine Twinning
Restricted funds
SIEM
BEIS ODA
Mitacs
Global Wales II
Global Wales II + 1
Vietnam Partnership
India Scholarship
Universities Wales International
Welsh Innovation Network (WIN)
Welsh Governance
Civic Mission
US International
Scotland is Now
Pensions reform
KE Concordat
The Concordats review
Research development Concordat
Student MH partnerships
OFS – Analytics
Other
Non-charitable trading funds
Group – total funds		 At 31
July 2022
£’000
Transfers
£’000
Resources
expended
£’000
Incoming
resources
£’000
At 1 Aug
2021
£’000
600
675
(207)
-
465
(454)
-
(1,613)
(9,355)
-
1,239
7,720
600
584
1,882
1,068
11
(10,968)
8,959
3,066
1,276
178
195
110
27
165
668
-
-
-
(4)
-
(1)
(1)
-
-
(5)
-
-
-
(680)
(90)
(78)
(68)
(39)
(409)
(448)
(565)
(526)
(63)
703
62
115
88
48
492
498
-
526
63
1,257
206
159
91
18
82
623
565
-
-
-
-
-
-
-
-
(4)
(52)
(16)
4
41
16
-
11
-
83
235
79
10
115
477
-
-
33
-
-
1
-
-
-
(31)
31
-
-
-
-
-
-
-
-
-
-
-
(830)
(1,334)
-
(30)
(5)
(2,113)
(21)
(12)
(93)
(159)
(396)
(68)
(75)
(79)
769
1,600
45
40
-
2,460
21
12
39
159
396
69
75
79
144
-
3
-
120
130
-
-
87
-
-
-
-
-
-
-
7
-
-
-
(18)
(3)
(70)
18
3
65
-
-
12
3,659
25
(11)
-
(8,344)
(427)
8,506
453
3,508
(1)
4,752
-
(19,739)
17,918
6,573

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

20. Movement in funds continued

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
Civic Mission
Restricted funds
Unrestricted funds
Investment fund (see note 14)
Universities Scotland /
Universities Wales (see note 1(n))
General funds
US International
Scotland is Now
Pensions reform
KE Concordat
The Concordats review
Student MH partnerships
OFS – Analytics
Algorithms
Other
Non-charitable trading funds
Group – total 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
-
(5)
(1)
-
-
-
-
(5)
(6)
-
-
-
-
-
15
-
-
(606)
(123)
(52)
(69)
(25)
(489)
(466)
(771)
(515)
(15)
(60)
(90)
(1,135)
-
(23)
(36)
641
63
88
76
21
407
513
915
515
15
7
94
1,123
20
153
14
1,227
267
123
3,066
2
(7,855)
8,177
2,742
84
22
164
581
427
-
-
53
7
156
85
-
22
87
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(107)
(60)
(396)
(70)
(30)
(32)
(7)
(13)
89
60
396
29
30
32
7
-
105
-
-
41
-
-
-
13
15
-
(54)
55
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

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

ANNUAL REPORT AND CONSOLIDATED 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		 2022
Total
£’000
Non-charitable
trading funds
£’000
Unrestricted
funds
£’000
Restricted
funds
£’000
393
600
29
-
354
600
10
-
993
12,831
(5,054)
29
642
(646)
954
5,438
(1,306)
10
6,751
(3,102)
8,770
(4,018)
25
-
5,086
(4,018)
3,659
-
4,752
25
1,068
3,659
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
22
(62)
1,000
6,678
(2,974)
14
3,594
(100)
8,211
(1,638)
(1)
-
4,704
(1,638)
3,508
-
6,573
(1)
3,066
3,508

ANNUAL REPORT AND CONSOLIDATED 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 2022 and 2021, 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 proft /(loss)
Interest receivable
Proft / (loss) on ordinary activities before taxation
Taxation
Proft / (loss) on ordinary activities after taxation
Gift aid payment to Universities UK
Retained proft / (losses) carried forward
Proft and loss account:		 Total 2021
£
Total 2022
£
91,315
(85,515)
1,023,129
(291,712)
5,800
(49,772)
(91,975)
731,417
(48,418)
(144,732)
(135,947)
22
538,267
188
(135,925)
-
538,455
-
(135,925)
88,556
538,455
(512,001)
(47,369)
26,454
Fixed assets
Current assets
Creditors: amounts falling due within one year
Net current assets
Creditors: amounts falling due after one year
Total net assets / (liabilities)
Represented by:
Share capital
Proft and loss account
Balance sheet:		 Total 2021
£
Total 2022
£
38,926
171,922
(61,994)
29,087
792,514
(646,293)
109,928
146,221
(150,000)
(1,146)
(150,000)
25,308
2
(1,148)
2
25,306
(1,146)
25,308

ANNUAL REPORT AND CONSOLIDATED 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 2022 and 2021, 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 2022 were £1.3m (2021 free reserves: £1.3m) which is equal to 22 months of unrestricted expenditure (2021: 25 months). This is in line with the organisation’s reserves policy.

Income
Expenditure
Surplus / (defcit)
Income and expenditure account:		 Total 2021
£
Total 2022
£
1,296,282
(1,369,999)
1,508,480
(1,370,426)
(73,717)
138,054
Total 2021
£
Total 2022
£
2,216,667
(402,492)
2,459,668
(507,439)
Assets
Liabilities
Net assets
Balance sheet:
1,814,175
1,952,229

ANNUAL REPORT AND CONSOLIDATED 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 2022 and 2021, 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
Income and expenditure account:		 Total 2021
£
Total 2022
£
512,921
(471,404)
41,517
498,399
(453,133)
45,266
Total 2021
£
Total 2022
£
737,423
(114,335)
742,060
(73,706)
Assets
Liabilities
Net assets
Balance sheet:
623,088
668,354

23. Conduit funding

Funds received in advance b/fwd
Amount received
Amount paid out
Funds received in advance c/fwd		 2021
£
2022
£
3,269
-
50,534
(53,803)
113,957
(113,957)
-
-

Amounts received and dispersed to universities 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

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 2020 (the valuation date), which was carried out using the projected unit method.

The 2020 valuation was the sixth 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 £66.5 billion and the value of the scheme’s technical provisions was £80.6 billion indicating a shortfall of £14.1 billion and a funding ratio of 83%.

A new deficit recovery plan was put in place as part of the 2020 valuation, which requires payment of 6.2% of salaries over the period 1 April 2022 to 31 March 2024, at which point the rate will increase to 6.3%. The 2022 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 3.31% (2021: 2%, 0.87%).

At 31 March 2022, USS had 212,306 (2021: 203,995) 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.

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 2022, SAUL had 74,428 (2021: 68,714) members.

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

Group contributions for the year to 31 July 2022
Summary
Active members at 31 July 2022
Group contributions for the year to 31 July 2021
Active members at 31 July 2021		 SAUL
USS
£345,766
57
£318,105
55
£1,296,986
82
£1,321,947
82

25. Financial instruments

2021
£
2022
£
Financial assets measured at amortised cost:
Trade debtors
Cash
Financial liabilities measured at amortised cost		 378
7,786
1,627
9,113
8,164
10,740
628
2,717

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

26. Related party transactions

Related party transactions are disclosed for CVCP Properties plc, Advance HE, QAA, Higher Education Statistics Agency, Universities and Colleges Admissions Service, Jisc, OIA and UCEA.

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. Related party transactions are at arm’s length where those terms can be substantiated.

CVCP Properties plc
Advance HE
Quality Assurance Agency
HESA
UCAS
JISC
OIA
UCEA		 As at 31 July 2022
Year ended 31 July 2022
Amounts due
to related
parties
£
Amounts due
from related
parties
£
Income from
related parties
£
Purchases from
/ payments to
related parties
£
307
-
-
-
974
-
-
-
1,732,666
-
285
285
-
5,000
570
285
959,910
33,319
470
755
-
13,495
1,190
8,506
888,696
-
-
-
4,141
-
-
450
1,281
1,739,091
1,017,645
893,287
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
-
-
694
1,772,591
1,045,073
911,644

There were no other related party transactions.

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 2022 there were 140 members (2021: 140).

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

28. 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 (expenditure) / income
Transfers between funds
Net movements in funds
Total funds at 1 August
Total funds at 31 July		 Total
Funds
2021
£’000
Total
Funds
2022
£’000
Restricted
Funds
2021
£’000
Restricted
Funds
2022
£’000
Unre-
stricted
Funds
2021
£’000
Unre-
stricted
Funds
2022
£’000
Notes
973
941
-
-
973
941
12,443
15,810
5,324
8,459
7,119
7,351
236
1,094
39
40
197
1,054
31
17
55
18
-
-
6
1
31
17
49
17
2
3
4
13,700
17,918
5,363
8,506
8,337
9,412
403
12,903
520
19,219
37
5,207
39
8,305
366
7,696
481
10,914
13,306
19,739
5,244
8,344
8,062
11,395
7
394
-
(1,821)
-
119
(2)
162
(11)
275
2
(1,983)
11
394
6,179
(1,821)
6,573
117
3,391
151
3,508
277
2,788
(1,972)
3,065
6,573
4,752
3,508
3,659
3,065
1,093

52

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

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 20 Potterrow Edinburgh EH8 9BL

Universities Wales Regus House Falcon Drive Cardiff CF10 4RU

Registered Charity in England No. 1001127 Registered Company No. 2517018

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 52

Universities UK is the collective voice of 140 universities 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

November 2022 ISBN 978-1-84036-498-9