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2023-07-31-accounts

Annual report and consolidated financial statements

Year ended 31 July 2023

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTSRegistered Charity in England and Wales No: 10011271 Registered Charity in Scotland No: SC052497 Registered Company No: 2517018

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ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

Contents

Contents
Trustees’ report 3
Independent auditor’s report to the 22
members of Universities UK
Consolidated statement of 25
fnancial activities
Charity statement of fnancial activities 26
Balance sheets 27
Consolidated cash fow statement 28
Notes to the fnancial statements 29
Legal and administrative 55

Trustees’ report

The trustees present their report and the financial statements for Universities UK for the year ended 31 July 2023.

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 142 members. Membership is voluntary and members are represented both at the UK level and in the devolved nations through Universities Scotland and Universities Wales.

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

Mission and main activities

At Universities UK, we harness the power of the UK’s universities and create the conditions for them to thrive. We are the collective voice of 142 universities, bringing them together to pursue a common cause: Thriving universities, serving society.

This mission forms the core of our strategic plan which runs to 2030 and sets out our ambitions for the sector. We will use our unique role to ensure our universities can transform the lives of more individuals, drive greater growth and create flourishing places through the knowledge and skills they generate, and be globally competitive centres of research making ground-breaking discoveries. We will help them achieve more by securing sustainable funding, and building pride in our universities.

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.

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.

Trustees

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 2023 were as follows:

Professor Sir Steven West CBE President 2021–2023 Professor Colin Bailey CBE *** Professor Dame Janet Beer DBE * Professor Paul Boyle CBE Professor Nishan Canagarajah Professor Karen Cox Professor Paul Croney OBE Professor Jenny Higham Professor Debra Humphris CBE Professor Sir Chris Husbands *** Professor Dame Sally Mapstone DBE FRSE Convener, Universities Scotland & Vice-President Scotland, President elect 2023–2025 Mr Stephen Marston *** Treasurer

Mr Stephen Marston *** Treasurer Professor Sir Gerry McCormac ** Professor Quintin McKellar CBE Vice-President England and Northern Ireland Professor Malcolm Press CBE Professor Lisa Roberts Professor Rama Thirunamachandran OBE Dr Paul Thompson *** Professor Wendy Thomson CBE *** Professor Adam Tickell Professor Elizabeth Treasure Chair, Universities Wales & Vice-President Wales Professor Shearer West CBE

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

Professor Nic Beech Appointed 1 August 2023, Treasurer 2023–2025 Professor Iain Gillespie Appointed 1 August 2023, VP Scotland 2023–2025 Professor Jane Harrington Appointed 1 August 2023 Professor Karen Holford CBE Appointed 1 August 2023 Rt Hon James Purnell Appointed 1 August 2023

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

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 (England and Wales) and SC052497 (Scotland). Its principal offices are in Bloomsbury, London.

Universities Scotland

In Scotland (where it operates from its Edinburgh office under the name Universities Scotland), Universities Scotland is a national council of the charity Universities UK.

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.

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.

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.

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.

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.

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 and OSCR 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 elected 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 UUK 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, Universities UK International, Communications, Operations, Member Services, 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 142 members, with most of the Board elected by and from its membership.

Principle 1 – organisational purpose

2022–23 was the final year of the strategic plan for 2018–23: World Leading Impact. The Board has spent time in the year thinking through organisation purpose and future strategic direction, with a new strategy published in September 2023. 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. 2022–23 was the second and final year of the current President’s term. Elections took place in the year for President, Treasurer and other vacant Board posts terms came to an end. The President has oversight of CEO performance.

Principle 3 – integrity

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

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 December 2022, on retiring, Professor Dame Janet Beer DBE (President and Chair of the Board from 2017–19) had served 13.5 years in a number of different elected roles including President and International Policy Lead. All remaining Directors are within best practice of nine-year terms.

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 from a restricted pool. 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, task and finish groups and a bi-annual member survey. The members have been involved in the year with discussions on organisation purpose and future strategic direction. 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

2022–23 represented the final year of Universities UK’s five-year-strategic plan: 2018–23, World Leading Impact. The strategic objectives in that plan are:

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

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 strategic report sets out how we have worked for the sector this year. For example, we have convened a national conversation on the future funding of university teaching and research while building the evidence base which will illustrate the need for action. We have reviewed our approach to communications. We have shaped policy on international student visas, seeing off proposed restrictions to the Graduate Route. We have pushed forward proposals for the improvement of regulation in England, building the case for change and securing modest but meaningful progress. We have influenced key pieces of legislation such as the Freedom of Speech Bill, to reduce the potential adverse consequences. Our work to represent USS employers has seen us pick a careful path towards the current valuation, working towards securing agreement with the unions on a route map to longer term stability in the scheme. And at the political level, we have built upon our reputation as a constructive partner of Government while simultaneously broadening and deepening our political relationships with the Labour front bench.

None of this would be possible without the active engagement of our member institutions. Member engagement remains high with regular monthly VC calls, our annual conference at The University of Leicester in September and our quarterly members’ meetings. We continued our engagement with new and mid-term vice-chancellors through peer-topeer learning opportunities, and our Specialist Institutions’ Forum (SIF) brought focus and profile to the issues of our small and specialist institutions.

Universities UK has secured a significant amount of parliamentary engagement in the year with 34 written and oral questions in parliament on issues of interest to Universities UK members and 71 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 94 universities, 48 MPs and 44 peers.

Using print, broadcast and social media, we disseminated information to members and the wider public. There were 1,500,000 unique visitors to the Universities UK website and our social media presence continues to grow with 2.2million Twitter impressions and 1.4million LinkedIn impressions.

Our new “Comms Hub” was launched in the year which will be a resource for communications and political affairs messaging and sharing case studies of work across the sector.

The #WeAreInternational campaign was relaunched that celebrated the social, cultural and civic contributions international students make to the UK. Over 70 universities joined the campaign on the relaunch day, reaching over 7million people.

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. There were 37 higher education themed events, attracting 7,750 delegates, over 50 sponsors and nearly 700 speakers. Topics covered included Political Affairs, Employability and Skills, Enhancing the Student Experience, Global Wales and the successful annual International Higher Education Forum.

Key outcomes in 2022–23

As a result of the activities in the year Universities UK achieved the following in the pursuit to secure a sustainable future for our universities, support student success and deliver high quality education.

Launch of the national conversation on the future of university funding. Working with governments, political parties, consumer groups, employers, staff, students and the wider public the conversation is aiming to identify possible long-term approaches to the funding that universities receive for their teaching and research.

Universities UK continues to be closely involved in the policy development of the Lifelong Loan Entitlement in England. The consultation response saw the government commit to the removal of all remaining ELQ restrictions, and to introduce maintenance support for in-person modular study.

The report ‘Our universities: generating growth and opportunity’ explores ways in which universities can contribute to economic growth. The report highlights the success of UEZ projects in Nottingham, Liverpool, Hertfordshire, Bradford and Bristol. It demonstrates how well-placed and crucial universities are to supporting economic growth a priority for the UK government.

Engaged closely with the Labour party to influence developing thinking on innovation policy, including submission to their review of startups, and hosted a roundtable with the Shadow Chief Secretary to the Treasury.

Raised awareness of the risks to University research and innovation projects currently supported by European structural funds, resulting in recognition of the issue by the Secretary of States for DSIT and DLUHC.

Regulation

Universities UK presented data and information on the impact of the cost of living crisis for the student population and welcomed the government’s decision to increase hardship funding for the higher education sector to shore up the support provided by member institutions to their students.

Research and Innovation

Universities UK and the sector were delighted with the announcement that a deal had been reached on the UK’s association with Horizon Europe. This has been the basis of a significant amount of policy work, lobbying, campaigning and influencing to secure this important agreement to allow our scientists to work together, irrespective of borders. This enables to do everything possible to ensure the UK rapidly bounces back towards previous levels of participation and is able to secure genuine value, delivering the wealth of research and opportunities available.

Continued to influence the development of the Higher Education (Freedom of Speech) Bill, ensuring that the tort remains a backstop, rather than a first port of call. Alongside this, we have been proactive and visible by co-ordinating a cross-sector statement to highlight commitment to the pursuit of truth and free exchange of ideas.

In the work on admissions, UCAS data showed conditional unconditional offers have almost completely disappeared, driven largely by the Universities UK code of practice.

Quality

Universities UK has influenced changes to the National Student Survey. Largely this has involved communicating concerns of increased divergence across the nations. This was set out in the consultation response published earlier in the year.

Tackling harassment

Student mental health

International students

Universities UK has responded robustly throughout the year to the speculation that the UK government may look to cut international student numbers. Universities UK have been clear throughout all conversations with government that protecting the Graduate route and the government’s commitment to international student recruitment must be a priority – work with Public First shows the public are not in favour of cutting the number of international students.

Ahead of the government announcements, on Tuesday 16 May, UUKi, with partners HEPI, Kaplan International Pathways, and London Economics, published a report exploring the impact of international students to the UK economy. The costs and benefits of international higher education students to the UK report is a follow up to a similar report published in 2021.

The report demonstrated that:

It includes a detailed breakdown of economic value by constituency, and received significant and sustained media coverage across local, national and sector press. It has also been shared extensively across government and funders, including the devolved administrations.

The students that choose the UK contribute greatly to our campuses and communities, and each has their own ambitions and aspirations – these stories need to be recognised and celebrated. This is why Universities UK began working with partners at UKISCA, BUILA, and London Higher, and others to relaunch the #WeAreInternational campaign. On 23 May – coincidentally, and poignantly, on the day of the government announcements – #WeAreInternational began once again, with universities across the UK celebrating the social, cultural and civic contributions internationals students make, telling their individual stories.

The aim of this campaign is to raise awareness of these individual stories and to further enhance the positive understanding of and sentiment towards international students in the eyes of public, political and media opinion. Over 70 universities joined in the campaign on the relaunch day, reaching over 7 million people.

In support for universities recruitment of international students, in partnership with BUILA Universities UK developed new agent good practice guide and a student facing guide to using agents. Alongside this, Universities UK has also helped prevent the implementation of a regressive Home Office policy on ‘remote delivery’, working with officials to develop a more proportionate and workable policy.

Security

Publications

In 2022–23 Universities UK produced 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:

Throughout the year the responses to Office for Student consultations were published:

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. Universities Scotland achieved outcomes for members across a range of fronts in 2022–23.

Funding

Universities Scotland campaigned throughout the year on funding issues, based on our overall statement of the sector’s contribution and needs Time to Choose: The need to invest strategically in ’ Scotland s universities.

On core university funding, Universities Scotland achieved a £20m cash increase in resource funding for higher education in the Scottish Budget published in December 2022, at a time when many other sectors in receipt of public funding were seeing cash cuts. Unfortunately Scottish Government later decided to reverse the published increases for colleges and universities. We turned that at least in part to the sector’s advantage, by using this reversal as a campaigning tool to generate increased crossparty political recognition of the financial strains on the sector, including Parliamentary briefings and high-profile media appearances.

Also on funding, we secured a £3.5m increase in funding from DSIT, formerly BEIS, for research, avoiding the potential for Scottish Government to reallocate this to other priorities outside the sector.

Policy influence

Universities Scotland achieved a wider range of policy influence objectives including in the following areas.

Innovation Policy

We Influenced Scottish Government’s Innovation Strategy so that it places universities at the centre of generating innovation-led economic growth. This formed part of a wider campaign to build a closer relationship with the Economy DirectorateGeneral of Scottish Government which has led to them prioritising universities as a driver of economic growth.

Skills policy

We offered intensive input to the Withers Review of skills policy so that it supports the breadth of universities’ contribution to developing people with the skills and attributes for the future, changing a Scottish Government narrative that had previously been quite narrow about universities’ contribution and unlocking new policy potential with regard to Graduate Apprenticeships and lifelong learning.

Purpose & Principles of post-school education We made detailed and frequent inputs to the Scottish Government’s extensive exercise on the purpose and principles of post-school education and research so that the published outcomes recognise the full range of universities’ contributions to society, forming a basis for further policy-making. This mitigated a high risk that this exercise would have narrowed SG’s aspirations for higher education.

Widening access to higher education

We drove further progress on widening access policy, including detailed contributions to a working group to secure Scottish Government recognition of the need to include a wider set of metrics of disadvantage rather than just measure this by postcode, and building a close relationship with the new Commissioner for Fair Access that has made him an advocate for the sector’s achievements.

Interface between school and university

We participated in the Hayward Review of school-level qualifications so that it reflects universities’ perspectives on reform, moving towards a modernised curriculum and assessment arrangements at school to better support learners progression to positive destinations. We also contributed university sector perspectives to the Scottish Government’s National Conversation on Education.

Quality enhancement

We substantially influenced the Scottish Funding Council’s development of a ‘tertiary quality framework’ so that this will protect Scottish universities’ distinctive enhancement-led approach.

Political relations

Universities Scotland managed an intensive programme of political relations, including a highlysuccessful Scottish Parliament event to promote universities’ contribution to inclusive economic growth, which attracted nearly 40 MSPs. Our briefings were regularly quoted in the Scottish Parliament by members from across the political spectrum, and our intensive programme of meetings with politicians culminated in Principals’ dinner with the First Minister in July 2023, with the promise of further structured engagement with the members of the Scottish Cabinet over the course of the next 12 months.

International

We worked with UUKi to influence overall UK policy international mobility and the international promotion of higher education, and to inform the development of Scottish Government’s International Education Strategy.

We intensified our relationships with key international partners, including hosting a successful mission by the U-15 group of research-intensive German universities.

We continued to work with Connected Scotland partners to develop and deploy campaigns to promote Scottish Higher education overseas, under the ‘Scotland is Now’ brand.

Organisational review

We also commissioned an organisational review to inform the further development of Universities Scotland as a highly-effective organisation. This reported in April 2023, and implementation work is now being taken forward in close co-creation with staff and with the US Corporate Governance group of members.

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.

CTER

Wales is currently in the first stage of implementing the wide-ranging regulatory and funding reforms of the Tertiary Education and Research (Wales) Act 2022, which received Royal Assent in September 2022. The new Commission for Tertiary Education and Research (CTER) was formally established on 15 December 2022 and is due to replace HEFCW by April 2024. The first Board appointments were made including the Chair, Deputy Chair and CEO and are due to start from September 2023. Notably, this included the appointment of the former Chair of Universities Wales as Chair of the CTER.

Global Wales

In 2022–23, Universities Wales delivered the first year of the four-year Global Wales III programme, funded by the Welsh Government through Taith (Wales’ international exchange programme). The programme aims to increase education export earnings, raise the profile of Wales internationally and increase student recruitment and mobilities.

The programme delivered activities across all four target markets – Europe, North America, India and Vietnam – as well as Study in Wales brand and marketing activity. This included marketing campaigns across all priority markets, inward and outward delegations, scholarships for international students to study in Wales, guidance counsellor tours of Wales, funding for Welsh institutions to engage in partnership development, attendance at

key international conferences and the development of memoranda of understanding with key partners including Universities Canada.

In addition to Global Wales III activity, the team was also able to utilise other funding sources to deliver benefits for members. Most notably, this includes a second round of grant funding to support partnership building between universities in Wales and Ukraine.

WIN

In 2022–23 Universities Wales continued to deliver the Wales Innovation Network (WIN), which is funded by HEFCW and member subscriptions. The programme aims to promote and facilitate collaboration between Welsh universities, drawing on the diverse research and innovation (R&I) strengths across the sector to build competitive funding bids.

The programme seeks to build R&I networks, communicate Wales’ R&I strengths, and to facilitate collaboration and enrich the R&I environment in Wales. In 2022–23 WIN built networks in key thematic areas and worked with Global Wales to award seed-funding to build collaborations, both domestically and internationally. WIN has launched an all-Wales technicians’ network, modelled on those elsewhere in the UK and has become a supporter of the Technicians’ Commitment.

WIN worked with Welsh Government’s innovation team to ensure that collaborative strengths identified by WIN were included in Wales’ new innovation strategy, which was launched in February 2023.

Research funding

Universities Wales undertook a range of work to highlight the impact of the loss of EU structural funds on R&I activity at Welsh universities, including holding an event in Westminster for an audience of cross-party MPs. Our work in this area has secured national media coverage and has been referenced in the Senedd. Universities Wales continues to work with UUK colleagues on lobbying for bridging funding to support university research projects that were ESIF funded.

Skills

Universities Wales supported and fed into Welsh Government’s independent review of Vocational Qualifications in Wales, ensuring the role of universities in delivering skills for the future, particularly in relation to vertical alignment from Level 4 to Level 6, was understood by the steering group. The Senedd’s Cross-Party Group for Universities, coordinated by Universities Wales, held a joint meeting with the Cross-Party Group on Further Education and Skills to discuss a Welsh Government-commissioned report on transitions into employment, and the role of universities and colleges in delivering skills education.

Degree apprenticeships Universities Wales has continued to engage with Welsh Government and HEFCW on expansion of the Degree Apprenticeship programme in Wales through the Welsh Government’s Degree Apprenticeship Framework Advisory Group.

Civic Mission

The Universities Wales Civic Mission Network held a showcase event at the Senedd to highlight the work Welsh universities are doing to help alleviate poverty in communities across Wales. Sponsored by Hefin David MS, the showcase was attended by Senedd Members and included a speech by Jeremy Miles MS, Minister for Education and Welsh Language.

Mental health and wellbeing

Universities Wales responded to the Senedd’s Children, Young People and Education Committee’s inquiry into student mental health via written and oral evidence. Key recommendations including improved information sharing, join-up with the NHS and increased support for transitions were all taken forward by the Committee and accepted by Welsh Government in response to the Committee’s report.

Universities Wales was invited to sit on the Deputy Minister for Mental Health and Wellbeing’s Advisory Group on mental health, and will be feeding into Welsh Government’s revised mental health strategy.

Activities for members – Health

Medical Schools Council (MSC)

The academic year 2022–23 was marked by political turmoil in the Government, the cost of living crisis and the on-going war in Ukraine together with a slow return to face to face meetings and office working post-pandemic. MSC was widely praised for the leadership it provided to the sector during the pandemic and the extremely effective guidance it provided to protect patients, students and staff.

The year was also marked by extensive work with the GMC around the Medical Licensing Assessment. The medical schools will collectively set and administer a common test of applied knowledge to be regulated by the GMC. Piloting the process continued in 2022–23 and will go live in June 2024 for schools taking finals in the penultimate year. The MSC has 10 aims in it works representing the medical schools:

Aim 1: To be the authoritative voice of UK medical schools

The first meeting of the Health Education England /MSC Strategic Liaison Group was held in October 2022; MSC also plays a central role in the interdepartmental liaison group HENSE – the Health Education National Strategic Exchange. In the year MSC gave evidence to the House of Lords Science

and Technology Committee’s Inquiry into clinical academics in the NHS and invited to 10 Downing St for a meeting of 12 senior leaders in the healthcare sector with the Prime Minister and Secretary of State for Health.

Aim 2: To ensure the world-class quality of UK medical education

The MSC initiative to create the UK Medical Education Database (UKMED) with the GMC and other stakeholders has created the ability to undertake high quality research into, for example workforce planning and different educational initiatives – such as widening access. The MSC works with the General Medical Council on the Medical Licensing Assessment. They have also engaged with the GMC on matters relating to registration and student fitness to practise.

Aim 3: To be a global leader in medical assessment

The most significant change in medical education for decades was the decision by UK medical schools to set and administer a national exam – the Medical School Applied Knowledge Test (AKT), regulated by the GMC. Three additional staff members have been employed to work on the development of the AKT.

The AKT is currently in the pilot stage with almost all schools participating in 2022–23 going live in the 2024–25 academic year and at this point all students will only be permitted to graduate if they have passed the AKT and CPSA.

Aim 4: To focus on Equality, Diversity and Inclusivity and to enhance clinical leadership and develop leaders within medical schools

In 2022–23 the MSC Equality, Diversity and Inclusion Alliance has further developed its strategic focus and the group is now starting to produce tangible outputs.

Aim 5: To maintain and build on the close relationship between universities and the NHS

The MSC secretariat also supports the University Hospital Association and so staff are ideally placed to maximise the usefulness of their understanding of different issues from the perspectives of both the NHS and Higher Education.

Aim 6: To explore the public’s needs of doctors, the number required and the changing role of the doctor in the future of healthcare

MSC intends to be at the centre of the process of the implementation of the Government’s long awaited Workforce Plan published in July 2023.

Aim 7: To promote clinical academic careers and the conduct of high-quality research in medical schools

There has been a welcome focus on clinical academic careers in the past 12 months with the helpful recommendations from the House of Lords Science and Technology Committee, to whom MSC gave evidence.

Aim 8: To facilitate the transition between undergraduate and postgraduate environments MSC and the UK Foundation Programme Office (UKFPO) continue to work together to facilitate the transition between undergraduate and postgraduate education and training.

Aim 9: To support all aspects of medical schools’ work and add real value for members

When MSC was created in the last century it was essentially a support network for the Heads of the medical schools. With time it has metamorphosed into an organisation seeking to support all aspects of medical schools’ missions.

Aim 10: To provide a supportive network for medical school deans and their colleagues The Heads of Schools confirmed to an external review that if MSC did not exist it would have to be invented. It provides an invaluable mechanism for the resolution of issues and for supporting all members of the community for the greater good of students, staff, patients and the UK economy.

Developing our organisation

A significant piece of work in the year has been the development of the new Strategic Plan 2024-2030: A Common Cause: Thriving universities, service society. This was a year of engaging our members, staff and stakeholders and developing an ambitious plan to tackle the significant issues impacting our member institutions and the wider HE sector.

We continued to focus on services to and engagement with our members. As the incoming CEO in September 2022, Vivienne Stern has prioritised meeting our members to understand their views, with 63 institution visits in the year. We ran the popular new and mid term VC sessions, and continued to facilitate mentoring and peer to peer networking among the Vice-Chancellor community. In August 2023, after 35 years’ service to Universities UK, our Director of Member Services left the organisation. The Trustees would like to thank Dr Antoinette Titchener-Hooker for her outstanding service and part she played in developing the well regarded services for members.

Our operational support services functions (IT, HR, Facilities and Finance) continued to create the work environment, processes, systems and structures to support our colleagues to focus on their work. We reviewed and developed the security infrastructure for IT services, developed and launched a ‘comms hub’ for institutions to share good practice and redeveloped our members areas of the website.

USS pensions reform

Our responsibilities for representing employers in the USS pensions scheme continue to be a significant workstream. This year the team have worked with the USS Trustee and JNC to progress an ambitious timetable for the 2023 valuation with a view to implement any benefit reform on 1 April 2024. Alongside this work they have continued to work on low-cost options and exploring conditional indexation.

We have progressed the discussions with UCEA with a view to them taking on the role of the USS employer representative and have engaged with all USS employers in the year to present our joint proposal for this change. We expect this transfer will happen in Spring 2024.

Looking forward – our priorities for 2023–24

At Universities UK, we harness the power of the UK’s universities and create the conditions for them to thrive. We are the collective voice of 142 universities, bringing them together to pursue a common cause: thriving universities, serving society. This mission forms the core of our strategic plan which runs to 2030 and sets out our ambitions for the sector. Our influence, convening power, and insight will enable our universities to:

To help them achieve this we will:

At Universities UK, we know that we need to develop our organisation to be:

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 27 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 / (defcit)
Transfers
Net movement in funds
Funds brought forward
Funds carried forward		 Unrestricted
activities
£’000
Restricted
activities
£’000
Total
2023
£’000
Total
2022
£’000
9,892
7,190
17,082
17,918
(9,213)
(7,525)
(16,738)
(19,739)
679
(335)
344
(1,821)
12
(12)
-
-
691
(347)
344
(1,821)
1,093
3,659
4,752
6,573
1,784
3,312
5,096
4,752

A consolidated surplus of £344,000 is reported for the financial year ended 31 July 2023. This comprised an unrestricted surplus of £691,000 and a restricted deficit of £347,000. £346,000 of the unrestricted surplus related to a credit movement on the pension deficit recovery plan provision and £41,000 to a debit movement on the annual leave accrual (FRS 102 adjustments). Excluding these items, the unrestricted surplus for the year ended 31 July 2023 stood at £386,000.

Unrestricted income in 2023 increased on last year to £9,892,000 (2022: £9,412,000).

Restricted income of £7,190,000 was lower than the 2022 level of £8,506,000. This decrease related to WIN (Welsh Innovation Network) and Global Wales activities.

The organisation’s net assets were £5,096,000 at 31 July 2023 (2022: £4,752,000). The increase in assets is due to the decrease in the USS pension deficit recovery plan provision. The decreased liability was due to an increase in the discount rate.

Principal funding sources

Membership subscriptions provides 66% of the unrestricted income, and the balance comes from sales of goods and services (14%), conference receipts (8%), covenant income (7%), and investment and other income (5%). 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

The sharp increase in inflation has seen our cost base increase, and our income from property operations drop with the impact of increasing utility costs. Continuing rail industrial action has had an impact on the Conference Centre bookings impacting the income received from Woburn House 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, it is not appropriate for the organisation to adopt an ethical investment policy.

Principal risks and uncertainties

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

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

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 £4.1m (2022: £4.4m) and to cause Universities UK’s group free reserves to be less than the target range of months of unrestricted expenditure. The trustees do not believe the impact of FRS 102 to be significant as most of the provision is for extra pension payments that will be made over a number of years up to 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.

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 inflationary pressures on our costs, 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.

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		 2023
£’000
2022
£’000
1,730
1,068
(912)
(954)
(802)
(675)
16
(561)
4,112
4,417
4,128
3,856
7,664
9,782
305
(2,354)
7,969
7,428
0
0
6.2
4.0 – 6.0
6.2
4.0 – 6.0

Political and charitable donations

The company made no political donations in the year (2022: nil). During the year, charitable donations made in lieu of buying and sending hard copy Christmas cards were £510 (2022: £250).

21 ©

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:

Audit information

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

Auditor

A scheduled review of audit provision will take place in the coming year.

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

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.

Professor Nic Beech Treasurer

17 November 2023

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 2023 which comprise the Consolidated Statement of Financial Activities, the Charity 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.

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.

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.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

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.

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 and the Charity Accounts (Scotland) Regulations (as amended) require us to report to you if, in our opinion:

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

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, section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 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: 21 November 2023

Consolidated statement of financial activities – year ended 31 July 2023

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 2022
Total funds at 31 July 2023		 Notes Total Funds
2023
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total Funds
2022
£’000
2
3
4
7
20
20		 724
941
14,558
15,810
1,486
1,094
297
55
17
18
724
7,494
1,425
232
17
-
7,064
61
65
-
9,892
7,190
17,082
17,918
750
520
15,988
19,219
690
8,523
60
7,465
9,213
7,525
16,738
19,739
679
12
(335)
(12)
344
(1,821)
-
-
691
1,093
(347)
3,659
344
(1,821)
4,752
6,573
1,784
3,312
5,096
4,752

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 29 to 54 form part of these financial statements.

Charity statement of financial activities for the year ended 31 July 2023

Income and expenditure
Income from:
Expenditure on:
Donations
Raising funds
Charitable activities
Charitable activities
Other trading activities
Investments
Other income
Total
Total
Net income
Net movements in funds
Total funds at 1 August 2022
Total funds at 31 July 2023		 Notes Total Funds
2023
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Total Funds
2022
£’000
2
3
4
7
20		 1,411
1,453
12,219
13,850
106
121
224
49
17
17
1,411
7,494
106
224
17
-
4,725
-
-
-
9,252
4,725
13,977
15,490
67
74
13,739
17,447
67
8,523
-
5,216
8,590
5,216
13,806
17,521
662
(491)
171
(2,031)
662
1,068
(491)
1,038
171
(2,031)
2,106
4,137
1,730
547
2,277
2,106

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 29 to 54 form part of these financial statements.

27 ©

Balance sheets – 31 July 2023

Group Group Charity Charity Charity
Notes 2023 2022 2023 2022
£’000 £’000 £’000 £’000
Fixed assets
Intangible fixed assets 12 113 110 105 99
Tangible fixed assets 13 261 283 207 255
Investments 14 600 600 600 600
974 993 912 954
Current assets
Debtors
- due within one year
- due after more than one year		 2,037
2,968
750
750
jE]		 2,476
3,427
750
900
EE
15 2,787 3,718 3,226 4,327
Investments – short term deposits 5,414 5,594 3,564 3,994
Cash at bank and in hand 2,561 3,519 809 1,397
10,762 12,831 7,599 9,718
Liabilities
Creditors: amounts falling 16 (2,999) (5,054) (2,593) (4,548)
due within one year
Net current assets 7,763 7,777 5,006 5,170
Total assets less current liabilities 8,737 8,770 5,918 6,124
Creditors: amounts falling due 18 (3,641) (4,018) (3,641) (4,018)
after one year
Total net assets 5,096 4,752 2,277 2,106
Funds and reserves
Restricted funds 3,312 3,659 547 1,038
Unrestricted funds 1,730 1,068 1,730 1,068
Non-charitable trading funds 54 25 - -
Total funds 20 5,096 4,752 2,277 2,106

Approved by the Board of Directors and authorised for issue on 17 November 2023. Signed on their behalf:

Vivienne Stern MBE Chief Executive

Professor Nic Beech Treasurer

Company Number: 2517018

The notes on pages 29 to 54 form part of these financial statements.

Consolidated cash flow statement for the year ended 31 July 2023

Net income for the year
Cash fows from operating activities
Interest income
Depreciation and amortisation charges
Cash fows for investing activities
Decrease / (increase) in debtors
(Decrease) / increase 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		 Net income for the year
Cash fows from operating activities
Interest income
Depreciation and amortisation charges
Cash fows for investing activities
Decrease / (increase) in debtors
(Decrease) / increase 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		 2023
£’000
2022
£’000
(297)
(55)
344
(1,821)
129
141
931
(1,210)
(2,432)
4,298
(1,325)
1,353
(1,325)
1,353
297
55
(110)
(81)
187
(26)
(1,138)
1,327
9,113
7,786
7,975
9,113
5,414
5,594
2,561
3,519
7,975
9,113
Cash
Analysis of changes in net funds:
Cash equivalents
Total net funds		 At 1
August 2022
£’000		 At 31 July
2023
£’000
Cash
fows
£’000
3,519
5,594		 2,561
5,414
(958)
(180)
9,113 7,975
(1,138)

Notes to the financial statements – year ended 31 July 2023

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 have 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.

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 are as follows: 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.

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.

Although there was a Technical Provision deficit at 31 March 2020, allowing for the post valuation experience to 30 April 2021, SAUL had a Technical Provisions surplus. Therefore, no deficit contributions were required following the 2020 valuation and there is no defined benefit liability.

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.

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 £724,363 (2022: £940,940). Other transactions with CVCP Properties plc are included in note 26.

Covenanted income receivable during the year from Woburn House Conference Centre was £687,033 (2022: £512,001).

3. Income from charitable activities

Subscriptions from membership
Subscriptions from membership
Group
Charity
Grants and contracts
Grants and contracts
Conference income
Conference income		 Total
2023
£’000
Total
2022
£’000
Restricted
Funds
£’000
Restricted
Funds
£’000
Unrestricted
Funds
£’000
Unrestricted
Funds
£’000
9,057
10,602
2,512
4,208
6,545
6,394
4,697
4,541
4,552
4,251
145
290
804
667
-
-
804
667
14,558
15,810
7,064
8,459
7,494
7,351
7,267
9,374
722
2,980
6,545
6,394
4,148
3,809
4,003
3,519
145
290
804
667
-
-
804
667
12,219
13,850
4,725
6,499
7,494
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
Charity
MSC Assessment
Group		 Total
2023
£’000
Total
2022
£’000
Restricted
Funds
£’000
Restricted
Funds
£’000
Unrestricted
Funds
£’000
Unrestricted
Funds
£’000
5,802
5,667
409
411
5,393
5,256
744
756
97
109
647
647
721
2,951
216
2,460
505
491
1,569
7,267
799
9,374
221
429
1,569
722
799
2,980
221
429
-
6,545
-
6,394
-
-
9,057
10,602
2,512
4,208
6,545
6,394

6. Grants and contracts

Unrestricted Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds 2023 Funds Funds 2022
£’000 £’000 £’000 £’000 £’000 £’000
Taith - 2,256 2,256 - - -
Research England * - 1,110 1,110 - 566 566
FCDO * - 203 203 - 63 63
Scottish Funding Council * - 115 115 - 69 69
All Party Parliamentary 44 15 59 43 26 69
University Group
Scottish Government * - 50 50 - 86 86
DSIT, formerly BEIS * - 58 58 - 41 41
London Higher 50 - 50 24 - 24
Conservatoires UK 15 31 46 14 30 44
Higher Education Funding - 43 43 - 2,427 2,427
Council for Wales *
Welsh Government * - 30 30 - - -
The Wellcome Trust - 25 25 - 50 50
University of Nottingham 25 - 25 - - -
UK Research and Innovation * - 20 20 - 25 25
British Council * - 15 15 124 85 209
Ofce for Students * - 7 7 - 23 23
Royal College of Nursing Scotland - - - 39 - 39
Department for Education * - - - - 16 16
University of the West of England - - - 14 - 14
HMRC * - - - 9 - 9
Other organisations 11 25 36 23 12 35
Charity 145 4,003 4,148 290 3,519 3,809
Health Education England * - 484 484 - 588 588
Department of Health & Social Care * - 11 11 - 65 65
Insight Direct UK Ltd - - - - 30 30
Other organisations - 54 54 - 49 49
Group 145 4,552 4,697 290 4,251 4,541

7. Total resources expended

Cost of raising funds
Cost of raising funds
Group
Charity
Charitable activities
Charitable activities
Activities for members
Activities for members
Core (see split below)
Core (see split below)
Conferences
Conferences
Medical & health
Medical & health
Exam delivery
Total activities for members
Total activities for members
Total resources expended
Total resources expended
Split of core activities
Group and charity
England, NI and UK-wide
International
Universities Wales
Universities Scotland
Total resources expended		 Total
2022
£’000
Support
costs
£’000
Direct
costs
£’000
Total
2023
£’000
Support
costs
£’000
Direct
costs
£’000
520
16,419
443
1,830
527
29
2,726
86
124
52
491
13,693
357
1,706
475
750
13,076
663
1,274
975
31
2,923
127
122
82
719
10,153
536
1,152
893
19,219
2,988
16,231
15,988
3,254
12,734
19,739
3,017
16,722
16,738
3,285
13,453
74
16,419
443
585
16
2,726
86
6
58
13,693
357
579
67
13,076
663
-
13
2,923
127
-
54
10,153
536
-
17,447
2,818
14,629
13,739
3,050
10,689
17,521
2,834
14,687
13,806
3,063
10,743
8,799
3,893
2,754
973
2,201
155
142
228
6,598
3,738
2,612
745
6,282
4,818
1,051
925
2,367
217
150
189
3,915
4,601
901
736
16,419
2,726
13,693
13,076
2,923
10,153

8. Support costs allocations

Trading activities: costs of
goods sold and other costs
Trading activities: costs of
goods sold and other costs
Charity
Group
Charitable activities
Charitable activities
Core
Core
Conferences
Conferences
Medical and health
Exam delivery
Total resources
Total resources		 Total
2023
£’000
Other
£’000
Finance,
HR, IT
£’000
Deprecia-
tion
£’000
Govern-
ance
£’000
Premises
£’000
31
2,923
127
122
82
2
544
23
35
10
5
1,119
49
32
18
15
105
5
4
-
5
166
7
10
17
4
989
43
41
37
3,285
614
1,223
129
205
1,114
13
2,923
127
2
544
23
5
1,119
49
1
105
5
1
166
7
4
989
43
3,063
569
1,173
111
174
1,036
Trading activities: costs of
goods sold and other costs
Trading activities: costs of
goods sold and other costs
Group
Charity
Charitable activities
Charitable activities
Core
Core
Conferences
Conferences
Medical and health
Medical and health
Exam delivery
Total resources
Total resources		 Total
2022
£’000
Other
£’000
Finance,
HR, IT
£’000
Deprecia-
tion
£’000
Govern-
ance
£’000
Premises
£’000
29
2,726
86
124
52
2
433
14
35
3
5
962
30
18
17
11
123
4
3
-
4
158
5
16
11
7
1,050
33
52
21
3,017
487
1,032
141
194
1,163
16
2,726
86
6
2
433
14
-
5
962
30
-
1
123
4
-
1
158
5
-
7
1,050
33
6
2,834
449
997
128
164
1,096

8. Support costs allocations continued

Governance costs are made up of the following:
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		 Total
2022
£’000
Total
2023
£’000
151
147
33
28
13
14
7
5
204
194
33
28
9
4
646
657
3
10

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
2022
£’000
Total
2023
£’000
6,529
6,269
767
696
1,910
4,022
33
55
9,239
11,042

‘Other pension costs’ includes a £447,000 credit relating to the movement on the USS pension deficit funding liability (2022: debit of £2,392,000). The change in liability is due to an increase in the discount rate applied, together with an increase in salary inflation rate assumptions.

The average number of employees throughout the year was:
Charitable activities
Support staf
Trading activities – Woburn House Conference Centre Limited		 2022
no.
2023
no.
116
20
5
130
24
5
141
159

The number of employees whose emoluments exceeded £60,000 (excluding employer’s pension contributions) was 35 (2022: 32).

£60,001–£70,000
£70,001–£80,000
£80,001–£90,000
£90,001–£100,000
£100,001–£110,000
£130,001–£140,000
£140,001–£150,000		 2022
no.
2023
no.
11
12
-
6
1
2
-
16
5
8
3
1
-
2

The total employer pension contributions for these staff were £552,552 (2022: £511,742).

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

No trustees received any remuneration for their services.

During the year £4,793 in travel and accommodation expenses were reimbursed to the institution of one trustee. (2022: £2,556).

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		 2022
£’000
2023
£’000
782
93
165
765
90
165
1,040
1,020

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 2022
Additions
Depreciation
At 1 August 2022
Charge for year
At 31 July 2023
Net book value
At 31 July 2023
At 31 July 2022
At 31 July 2023
Website development and software		 Charity
£’000
Group
£’000
197
47
338
47
244
385
98
41
228
44
139
272
105
113
99
110

13. Tangible fixed assets

Cost
Depreciation
Group
At 1 August 2022
At 1 August 2022
Additions
Charge for year
Net book value
Written of
Written of
At 31 July 2023
At 31 July 2023
At 31 July 2023
At 31 July 2022
Cost
Depreciation
Charity
At 1 August 2022
At 1 August 2022
Additions
Charge for year
Net book value
Written of
Written of
At 31 July 2023
At 31 July 2023
At 31 July 2023
At 31 July 2022		 Total
£’000
Ofce
Technology
£’000
Furniture
& Equipment
£’000
Leasehold
Improvements
£’000
1,161
63
(46)
72
19
(4)
562
44
(42)
527
-
-
1,178
87
564
527
878
85
(46)
37
26
(4)
511
14
(42)
330
45
-
917
59
483
375
261
283
28
35
81
51
152
197
960
22
(46)
57
9
(4)
376
13
(42)
527
-
-
936
62
347
527
705
70
(46)
25
21
(4)
350
4
(42)
330
45
-
729
42
312
375
207
255
20
32
35
26
152
197

14. Investments held as fixed assets

CVCP Properties plc ordinary shares of £1 each
CVCP Properties plc preference shares of £1 each
Group and charity		 Total
2022
£’000
Total
2023
£’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		 Charity
Group
2022
£’000
2023
£’000
2022
£’000
2023
£’000
1,406
858
968
345
750
425
892
776
383
750
1,627
-
968
373
750
799
-
776
462
750
4,327
3,226
3,718
2,787

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		 Charity
Group
2022
£’000
2023
£’000
2022
£’000
2023
£’000
2,349
8
316
154
734
987
461
3
335
175
952
667
2,563
-
316
154
948
1,073
616
-
335
175
1,156
717
4,548
2,593
5,054
2,999

At the year end outstanding pension contributions amounted to £174,546 (2022: £153,771).

17. Deferred income

Brought forward
Released in the year
Deferred in the year
Carried forward		 Charity
Group
2022
£’000
2023
£’000
2022
£’000
2023
£’000
1,168
(1,168)
987
987
(987)
667
1,289
(1,289)
1,073
1,073
(1,073)
717
987
667
1,073
717

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 charity
See note 24 for further details regarding these liabilities.		 Total
2022
£’000
Total
2023
£’000
4,018
3,641

19. Operating lease commitments

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

Land and buildings:
Land and buildings:
Within one year
Within one year
Between one and fve years
Between one and fve years
Ofce equipment:
Within one year
Between one and fve years
Group
Charity		 Total
2022
£’000
Total
2023
£’000
627
2,045
3
4
702
1,457
3
1
2,679
2,163
582
1,896
657
1,352
2,478
2,009

20. Movement in funds

Unrestricted funds
Group and charity
Investment fund (see note 14)
General funds
Universities Scotland /
Universities Wales (see note 1(n))
Restricted funds
Universities UK International
Ukraine Twinning
Ukraine UKRI/RE
Israel research mobility
Research Security
Global Wales II
Global Wales II + 1
Global Wales III
Vietnam Partnership
World Cup
India Scholarship
Universities Wales International
Welsh Innovation Network (WIN)
US International
Scotland is Now
Pensions reform
KE Concordat
The Concordats review
Research development Concordat
Other
Charity		 At 31
July 2023
£’000
Transfers
£’000
Resources
expended
£’000
Incoming
resources
£’000
At 1 Aug
2022
£’000
600
328
802
-
(467)
479
-
(6,333)
(1,549)
-
7,335
1,197
600
(207)
675
1,730
12
(7,882)
8,532
1,068
-
-
39
-
-
-
78
-
39
-
10
63
239
25
1
-
-
-
36
17
547
-
-
-
-
-
(23)
23
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(526)
(190)
(513)
(58)
(13)
(60)
(180)
(2,256)
(40)
(30)
-
(52)
(454)
(128)
(96)
(396)
(41)
(45)
(73)
(65)
(5,216)
526
190
552
58
13
-
-
2,256
-
30
-
-
216
120
97
396
40
45
109
77
4,725
-
-
-
-
-
83
235
-
79
-
10
115
477
33
-
-
1
-
-
5
1,038

20. Movement in funds continued

Medical Schools Council
Medical Licensing Assessment
University Hospital Association
Dental Schools Council
Pharmacy Schools Council
Association of Dental Hospitals
Summer School
MSC Assessment
Other
Group
Non-charitable trading funds
Group – total funds		 At 31
July 2023
£’000
Transfers
£’000
Resources
expended
£’000
Incoming
resources
£’000
At 1 Aug
2022
£’000
2
1,384
102
191
226
122
45
-
695
-
(3)
(3)
-
-
(1)
-
-
(5)
-
(537)
(716)
(110)
(84)
(73)
(30)
(498)
(259)
(2)
648
821
123
115
86
48
333
291
-
1,276
-
178
195
110
27
165
668
3,312
54
(12)
-
(7,525)
(1,331)
7,190
1,360
3,659
25
5,096
-
(16,738)
17,082
4,752

20. Movement in funds continued

Unrestricted funds
Group and charity
Investment fund (see note 14)
General funds
Universities Scotland /
Universities Wales (see note 1(n))
Restricted funds
Council of Deans of Health
Universities UK International
Ukraine Twinning
BEIS ODA
Mitacs
Global Wales II
Global Wales II + 1
Vietnam Partnership
India Scholarship
Universities Wales International
Welsh Innovation Network (WIN)
Welsh Governance
US International
Scotland is Now
Pensions reform
KE Concordat
The Concordats review
Research development Concordat
Other
Charity		 At 31
July 2022
£’000
Transfers
£’000
Resources
expended
£’000
Incoming
resources
£’000
At 1 Aug
2021
£’000
600
(207)
675
-
(454)
465
-
(9,355)
(1,613)
-
7,720
1,239
600
1,882
584
1,068
11
(10,968)
8,959
3,066
-
-
-
-
-
83
235
79
10
115
477
-
33
-
-
1
-
-
5
1,038
-
-
-
-
-
-
(31)
31
-
-
-
-
-
-
-
-
-
-
-
-
(565)
(526)
(63)
(52)
(16)
(830)
(1,334)
-
(30)
(5)
(2,113)
(21)
(93)
(159)
(396)
(68)
(75)
(79)
(107)
(6,532)
-
526
63
41
16
769
1,600
45
40
-
2,460
21
39
159
396
69
75
79
101
6,499
565
-
-
11
-
144
-
3
-
120
130
-
87
-
-
-
-
-
11
1,071

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
Other
Group
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
1,276
178
195
110
27
165
668
2
(4)
-
(1)
(1)
-
-
(5)
-
(680)
(90)
(78)
(68)
(39)
(409)
(448)
-
703
62
115
88
48
492
498
1
1,257
206
159
91
18
82
623
1
3,659
25
(11)
-
(8,344)
(427)
8,506
453
3,508
(1)
4,752
-
(19,739)
17,918
6,573

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:

20. Movement in funds continued

20. Movement in funds continued

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		 2023
Total
£’000
Non-charitable
trading funds
£’000
Unrestricted
funds
£’000
Restricted
funds
£’000
374
600
55
-
312
600
7
-
974
10,762
(2,999)
55
852
(853)
912
5,812
(1,353)
7
4,098
(793)
8,737
(3,641)
54
-
5,371
(3,641)
3,312
-
5,096
54
1,730
3,312
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

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 2023 and 2022, 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
Interest receivable
Proft on ordinary activities before taxation
Taxation
Proft on ordinary activities after taxation
Gift aid payment to Universities UK
Retained proft carried forward
Proft and loss account		 Total 2023
£
Total 2022
£
1,473,950
1,023,129
(497,643)
(291,712)
976,307
731,417
(66,963)
(48,418)
(199,719)
(144,732)
709,625
538,267
6,577
188
716,202
538,455
-
-
716,202
538,455
(687,033)
(512,001)
29,169
26,454
Fixed assets
Current assets
Creditors: amounts falling due within one year
Net current (liabilities) / assets
Creditors: amounts falling due after one year
Total net assets
Represented by:
Share capital
Proft and loss account
Balance sheet		 Total 2023
£
Total 2022
£
55,140
29,087
854,910
792,514
(855,573)
(646,293)
(663)
146,221
-
(150,000)
54,477
25,308
2
2
54,475
25,306
54,477
25,308

22. Subsidiaries continued

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 2023 and 2022, 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 2023 were £1.4m (2022 free reserves: £1.3m) which is equal to 31 months of unrestricted expenditure (2022: 22 months). This is in line with the organisation’s reserves policy.

Income
Expenditure
Surplus
Income and expenditure account		 Total 2023
£
Total 2022
£
2,173,550
1,508,480
(2,055,494)
(1,370,426)
118,056
138,054
Total 2023
£
Total 2022
£
2,540,695
2,459,668
(470,410)
(507,439)
Assets
Liabilities
Net assets
Balance sheet
2,070,285
1,952,229

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 2023 and 2022, 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		 45,266
Total 2023
£
Total 2022
£
291,130
498,399
(264,491)
(453,133)
26,639
Total 2023
£
Total 2022
£
720,222
742,060
(25,229)
(73,706)
Assets
Liabilities
Net assets
Balance sheet
694,993
668,354

23. Conduit funding

Funds received in advance b/fwd
Amount received
Amount paid out
Funds received in advance c/fwd		 2023
£
2022
£
-
-
4,533,396
113,957
(4,513,475)
(113,957)
19,921
-

Amounts received and dispersed to universities on behalf of the UK-Ukraine R&I Twinning Grants Scheme and MITACS for Globalink Research Internships.

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

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 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 5% for two years, followed by 3% for fifteen years, and a discount rate of 5.52% (2022: 2%, 3.31%).

At 31 March 2023, USS had 223,229 (2022: 209,638) 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.

24. Pension continued

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% of CARE salaries to 19% of CARE salaries from 1 April 2022 and 21% of CARE salaries from 1 January 2023.

At 31 March 2023, SAUL had 81,763 (2022: 74,428) members.

Group contributions for the year to 31 July 2023
Summary
Active members at 31 July 2023
Group contributions for the year to 31 July 2022
Active members at 31 July 2022		 SAUL
USS
£465,791
61
£345,766
57
£1,459,670
86
£1,296,986
82

25. Financial instruments

2023
£’000
2022
£’000
Financial assets measured at amortised cost:
Trade debtors
Cash
Financial liabilities measured at amortised cost		 799
1,627
7,975
9,113
8,774
10,740
791
2,717

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

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. In October 2022, the Higher Education Statistics Agency merged with Jisc.

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 2023
Year ended 31 July 2023
Amounts due
to related
parties
£
Amounts due
from related
parties
£
Income from
related parties
£
Purchases from
/ payments to
related parties
£
303
-
-
-
-
-
-
-
1,529,751
1,776
395
-
3,600
-
-
8,673
773,056
2,892
925
175
9,890
15,245
790
44,420
923,180
-
-
-
1,454
-
-
595
303
1,544,195
847,393
925,229
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

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 2023 there were 140 members (2022: 140).

28. Income and expenditure by fund

Income from:
Income and expenditure
Group
Donations
Charitable activities
Other trading activities
Expenditure on:
Investments
Raising funds
Other income
Charitable activities
Total
Total
Net income / (expenditure)
Transfers between funds
Net movements in funds
Total funds at 1 August
Total funds at 31 July		 Notes 2022
£’000
2023
£’000
Unrestricted
Funds		 2022
£’000
2023
£’000
Restricted
Funds		 2022
£’000
2023
£’000
Total
Funds
2
3
4		 941
724
7,351
7,494
1,054
1,425
49
17
232
17		 -
-
8,459
7,064
40
61
6
1
65
-		 941
724
15,810
14,558
1,094
1,486
55
18
297
17
9,412
9,892		 8,506
7,190		 17,918
17,082
481
10,914
690
8,523		 39
8,305
60
7,465		 520
19,219
750
15,988
7 11,395
9,213		 8,344
7,525		 19,739
16,738
(1,983)
11
679
12		 162
(11)
(335)
(12)		 (1,821)
-
344
-
(1,972)
3,065
691
1,093		 151
3,508
(347)
3,659		 (1,821)
6,573
344
4,752
1,093
1,784		 3,659
3,312		 4,752
5,096

28. Income and expenditure by fund continued

Income and expenditu re by fun dcontinued
Income from:
Income and expenditure
Charity
Donations
Charitable activities
Other trading activities
Expenditure on:
Investments
Raising funds
Other income
Charitable activities
Total
Total
Net income / (expenditure)
Net movements in funds
Total funds at 1 August
Total funds at 31 July		 Notes 2022
£’000
2023
£’000
Unrestricted
Funds		 2022
£’000
2023
£’000
Restricted
Funds		 2022
£’000
2023
£’000
Total
Funds
2
3
4		 1,453
1,411
7,351
7,494
121
106
49
17
224
17		 -
-
6,499
4,725
-
-
-
-
-
-		 1,453
1,411
13,850
12,219
121
106
49
17
224
17
8,991
9,252		 6,499
4,725		 15,490
13,977
74
10,915
67
8,523		 -
6,532
-
5,216		 74
17,447
67
13,739
7 10,989
8,590		 6,532
5,216		 17,521
13,806
(1,998)
662		 (33)
(491)		 (2,031)
171
(1,998)
3,066
662
1,068		 (33)
1,071
(491)
1,038		 (2,031)
4,137
171
2,106
1,068
1,730		 1,038
547		 2,106
2,277

55

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 1BE

Bankers National Westminster Bank plc 214 High Holborn 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 Units 6&7, Suite B One Central Square Cardiff CF10 1FS

Registered Charity in England and Wales No. 1001127 Registered Charity in Scotland No. SC052497 Registered Company No. 2517018

Universities UK is the collective voice of 142 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 X OO

November 2023 ISBN 978-1-84036-524-5