QOAA The Quality Assurance Agency for Higher Education Annual Report and Financial Statements 2024-2025 •AEH8ZWI3" 1N1212025 COMPANIES HOUSE A07 #230 Contents Foreword fr￿ Christian Brodie. CharofQAA Board................................... ...... . Slrnt•gi¢ R•port............-...... Purpose of QAA..................... What we do..................-...............-..........-.........--........... Standards..........................................................-............... Assurance and enhancement............................................ .. Inlernalional. Leadership............................................................................................................................ Looking ahead................................ .. Financial rnvi•w ..............-......-............. Resuts................................................................................. Income................................................................................................................................ 12 Expenditure......................................................................................................................... 12 Balance sheel............................ ........................................................................................ 12 Reserves policy................................................................................................................... 13 Treasury management........................................................................................................ 13 11 Dlre¢tors' Report.................................... .. ... ... ...... ...... .. .14 Strudure. governance and managwnent............................................................................ 14 Goveman¢e........................................................................................................................ 15 OrganisatKinal slTUCture... .20 Relerence and administrative details.................................................................................. 22 Independent Auditorf$ Report to the Membws and the Trustees of The Quality As$urnn¢e Agency for Highor Education..........................................................-............ 25 ststemenl of financial %ti¥it*s for the year ended 31 Juty 2025 ...... . .. ..... .............. .29 Balance sheel as at 31 July 2025 .... ....... . .................. .... ... Statement of ca$h fl¢)ws for the year ended 31 Juty 2025................................................... 31 Notes to the ffinancial statements for the year ended 31 July 2025.........-.........-......... 32 Glossary........................................-...-......-...-............................-.................................. 54 Foreword from Christian Brodie. Chair of QAA Board 11 has been my pleasure this year lo retum to the terts'ary education sector as QM'5 new Chair, taking over from Simon Gaskell after his six years of very distinguished service lo the Agency. Th￿e things atove all struck me al)OLrt tcyjay's QAA as l joined its Board. First, It is radically drfferent Agency from that of, say. a decade ago.. il is leaner, far more dynamic. and resolutely fonNard-fa¢ing. Second. the scope and variety of its work is remarkable. with distinct r￿lts in each of the nations of the UK and wrth a Ca￿fU1ty obseNed dividing line betsveen its wulatory and quasi-regulatory fun¢t￿n$ on the one hand and ils advisory and commercial wor1( on the other. Third. on the global stage. QAA 1$ an essential, and often the most visible. part of the UK higher edUcat￿n se¢tor as seen frw overseas- not onty by governments and qualty t)o¢Jies but also. wcialty. by universilies and stu¢Jents. QA4 has c￿leted an intemal restructure wrth the seThWS purp￿ of ensuring that the Agency is ready to Teswd lo the se¢torfs needs not just now but in the decade ahead. This is no small undertaking given the conb"nuing financkal pressure across the UK tertiary sector. and given the scale of challenges and opportunit￿S presented by rapidly devekjping Al technology.. we are al a fascinating P￿nI where fundamental quest￿n5 are repeatedty p05ed about the proper purpose, conlent and delivery mechanisms of educat￿1 at all levels in a future economy and society thal will Icok very drferenl from today's. These are stimulating limes, bul not easy ones, when the Sect￿ needs the experts.se of an ￿lePendent and impa￿al quality body more than ever. VKki's foreword surveys the spread of QA4's work in more detail., for my part, l am already pleased lo be ￿aCquaIntIng myself wth ￿lleagUeS across the sector and h)ok forwar(I very much lo playing my part in helping to steer QM in the years ahead. Foreword from Vicki StotL QAA Chief Executive It is with inmense pride that l introduce the QualTty AssurarKe Agency for Higher Education's Annual Report for 2024-25. This year has been one of transfom)*ion. resilience and impad. In a landscape where financol pressures c¢)ntinue lo challenge the lerbary education sector across the UK, QM has remained steadfast in its mission to safeguard and enhance qualty, both al home and abroad. Our Vltyk has not onty responded to the needs of our members but has also shaped the future of terbary edUC*￿n through Inr￿va￿"On. collaboration arKI nfluen￿. This has been the first year of our (klivery of the NutsiNJ and Miifvthery Council INMC contract, a very signrfKant undertsking fc* the Agery. The team has risen to the scale and complexrty of the work. delivering hwJh-quality assurance outputs that have enabled regulatory decision-making and begun the process of delNering real improvements to the learning experience of nursir¥J and mi￿rfery students UK-wide. We are working collaborats.vety wrth the NMC to deliver further enhancements over the c(xning years of the contrad, ub"lising our expertise to support the NMC in addressing their strategic challenges. This academr year also marked ffirsl steps of the new Tertiary Quality Enhanwment Review ITQERI method in S￿￿8nd. a cornefslone of the Scottish Funding Council's vision for a unrfied tertiary sector. At the time of writing, the first univerw and college have undergone their reviews. and have offered us positive feedback about their expersenee. The launch of Scotland's Tertiary Enhancement Programme {STEPI supporkn.ng Diverse Learner Joumeys has fostered collaboration across the tertiary sedor. with strong engagement frc colleges arKI universities alike. This year also we ￿nducted an oiganisational restructure- 1)ne QAA- to invest in the futur of the Agency and our capability to deliver for the sector and its stLtdenls. Deswned to resource and enhance our resFyJnsNeness to sector needs, the restructure has integrated our domestic and intemational delivery. bolstered our regulatory team capacity, and enhanced our marketing and engagement funct*)ns. l am excited to see QAA teams maximise the opportunity that this new structure and renewed focus give5 them to deliver high impact and valued work for our stskeholders in the UK and across the globe and l am, as ever. profoundly grateful lo my ¢olleagues for their commthient and reSi1￿nCe through the change process. We Iwk fo￿ard to being mcve re$ponsNe and agile in meeting the needs of the sectors we seFve, as they address the conswjeiable chalbenges they are facing. Internalionalty, aA4's Influen￿ continues to grow. We renewed mernorandums of understanding wrth key agencies in Thailand, Ma￿YS￿8. Kazakhstsn, Mauriti'us and Ukraine, slrengthening our gbbal partnerships and expanding our reach. Our part￿1patiOn in major inlemalional forums- from the Intemational Network for Quality Assurance Agencies in H￿her Education IINQAAHEI confwence in Tokyo to the Edu¢atK)n Wodd Forum in London has built fvTther on QA4'5 POSTlion as a thoughl leader in tranSnat￿na[ education ITNEI and quality assurance. Our inlemational acC￿lIatiOn work continues to thrive, with 26 instslutions engaged in the Internat￿nal Qualty Review process- up from 16 lasl year. The UAE and wider Middle East remans a region of great importance to QA4 and to UK higher educabon. and we are swng growing interest from West Africa, Southeast A%"a and Central Asia. The delivery of seven projects commissioned by the Departrnent for Business and Trade, examining barriers and opportunities for TNE across mumiple Tegions. has consolidated our profile as a trusted aifviser to govemment. Wh￿ will be increaslngly imwrtant as the new International EduCat￿n Strategy is published. QM'S policy influenee has been particulady impacttul this year at a time when the new Weslminster Government have embarked on their higher education refomi agenda. Our expertise has been recc¥Jnised by the Department for Education {DfEI, with QAA conlribuling to policy development on franchising, lrfelong leaming and hKJher educatw)n feform more widely. Our Work on eredrt transfer has been refieded in recent DIE announcernenls on the lrfelong ￿rning entrtlemenl. and our se¢t¢y roundtables on partnership provision have POSTboned QA4 as a leading voice in this spa¢e. In the devdved nations, we have deepened our engagement Tmih govemments and stakeholders. In Vvales, our collatK)ratK)n with Estyn and Medr has advanced the development of a cohesNe quality framework In Northem Ireland, we have supported the seelor through wcKk5hops, conferences and the inpleMentat￿n of the new UK Quality Code. Our representation on Bdogna Process working groups, facilitated through both the Scottish and UK governments, ensures that the UK'S wyce Continues to be heard in international pdicy forums. inC￿ding in relation 1¢ r•naining aligned wrth European stsndard$. Throughout this year. we have remained I￿tsed ￿ delNering value to our members. Despite financial constraints in the sector. our membership numbers have hekl strong, and engagement with our networks and evenls has often been exceptional. From the PVC Strategy Surnmil to the Student Engagement Festival, QA4 has prowded plallomis for dialogue. leaming and innovation. As we look ahead. we do so wrth confidence and aMtrxtK￿. The foundations laid this year- through strategic partnerships. policy influenc8 and organisalional transformation- posrtion QAA lo continue leading the UK sector in quality assurance and enhan￿Ment, and to continue to advocate for and support UK higher edUCat￿n on the global stage, as a workl- leading qualrty agency. l am deeply proud of what we have achieved together and grateful lo colleagues. members and partners th￿r survort in everything we do. Strategic report QAA works across the whole of Ihe UK Each country has a dtstinct and separate set of quality arrangements. so QM works wrfh regulators, funding agen￿es, higher education institutions, students and other stakeholders auoss the UK to delNer tailored approaches. Purpose of QAA QAA is a worfd-leading quality agency with unmatched experience of providing impartial regulatory and collaboratNe qualty assurance and enhancement. Our purpose is to ensure that students and ￿arnerS experience the highest possible quality of education. To achieve this, we support universitses and cdleges in Wor￿"ng wrth students and learners, governments. funders and regulatory tod￿$ to ewdence and enhance the excelknnt quality and high standards of the educatson they prowde. We work towards a greater publi¢ understsnding - domestically and intemationalfy - of how excellent quality is demonstrated in UK hNJher edUCat￿n, and how autonomous providers both assure ts delNery and address weaknesses. Our woth safeguards the v￿ve of qualffications for students and learners. and protecls and promote$ the reputab'on of highef educalion. It fall$ into four ¢alegorig$". standards, a￿uranCe and enhan¢emenL Internat￿nal. and kadership. What we do Standards Standards are a core pilkr of QAA'S vKJrk. QA4 develops. and is the custodian of, a suite of UK-wide sector reference points that act as standards for quality across tertiary educatK)n. Follwing the pub1ut￿n in 2024 of the new UK Quality Ctsje, Ihis year has seen the launch of the first three pie¢es ol Qualty Ccxle Athce and GU￿anCe for Seclor-Agreed Prin￿pIeS 1, 2 and 8.. Takin9 a strategic approach to managing quality and standards.. Engaging students as partners.. and Operating partnerships with other organisations respectivety. The Advice and Guidance is structured under the Se¢tOT-Agreed Principles of the UK Quality Code and is designed to support new and exisliThJ providers in meeting its mandatory requirements. It has been developed in partnership wrth the hjgher education sector. with colleagues from across prOv￿e[S, mission groups. funderlregulators and sector bodies and netsvorks all contributing to the Advice and GU￿larIce. makirtg it a truly sector-Nned endeavour that will ensure ils currency, applbcabilty and longevty. -Beffng tinv¢Sved in devekping the adv#x and guRlan￿ has béen a great opportunty to fvrthermy Unde￿I￿nding and engagement wrth the new Qualty Code. To tpally think about how il can be used lo support our assuran￿ and enhancement work locally and how our approach rn￿h1 evolve and develop over time. It has also been a fantastic opportunity to connect bwlh colleagues across the UK. to heardrfferentperspectives. and learn about different approaches andpractKes. to stretch my own thinking and support my development." (ma￿ Charte￿. Head of L&wning and Teaching. Glasgow School of Art) Advice and Guidance on the remaining nine Seclor-Agreed Prin¢ipk$ wll be published during 2025-26. We also published a further eight ref￿shed sutr4.ect Benchmark Statements to support academic communrties wrth course design and ￿¥1*&¥. Subj'ect Benchmark Statements are sector-owned and developed by acajemics, coordinated by QA4. During 2025-26, we will reviw a furth&r six Subject Benchrnark Ststernenls. Ac¢ess to HE Diploma QAA has published the new iteration ofthe Recognition Stheme for the Access to Hwjher Education {AHEI Diploma. We have been responsible for the reguLat*)n of this qual￿￿a￿On since 1997. and the Recognition Scheme Under￿n$ the terms of this regulatory activity. The new version ol the scheme inlroduees signrficant changes to the way in which QAA regulates the quahfication freAn Septemter 202S. The Access to HE Dipl¢)ma Is a Level 3 post-16 qvalificatDn frKused on providing adult learners who wish to enter h￿￿er eduCat￿ft the c$4)ortunity to gain the necessary qualifications in the subject areas they wsh to follow. The publication of the new edrtion of the Recognrtion Scheme follcN45 an extengve Per￿ of public consuttalion, which took place last year. QAA I￿enSeS Access Valhlating Agencies {AVAsl to deveh)p, validate and award the AHE qualification, and to Wofk with providets that deliver AHE Diploma courses. W places regulatory req￿IreMentS on AVAS through its L￿enSIng C0ndrt￿nS and reLated monitoring arrangements. It also sets out partKulaT requirements through the Diploma s￿￿1¢allOn and the assctiated Grading Scheme. For s￿Me subject areas. it sets requirements for the content of diplomas through Subject Descriptors. These are the regulatory elements that constslute the Recognrt￿n Scheme. Changes lo the Recognilion Scheme have been designed to ensure the AHE Dipk)ma's ongoing relevance and lo support its Contsnuing development as a key instrument for the promolton of widening partiupation in h￿her educab'on. 'This new principles-based framework offers a balanced and proportionate approach to regulalion, which is intended to foster OppOrtun￿e$ for innovation. enhancement and growlh in this valuable a￿a., says aaire Sw*s. Access lo HE Diplc*na off￿r at QAA International Access to HE Diploma In June 2025, we op8ned a consuAation on the Fwsed regulation and licensing of a potenlial new inlernational version of the dipkjma fOlk￿.￿g a ublic consultation on the broad principles of an 1nternats.onal Access to Higher Education Diploma IIAHED) in 2024. This second consultation invited further feedback frcffl all stakeholders, in particular those with Operat￿nal insight. to shape the specrtic details of the proposed IAHED and rts regulation- the Access ValKlaliNJ Agenues IAVAS) that award the diplorna, Ac￿sS lo HE providers. and policymakers and piaclitioners with an inlernalional remit. for instance. The proposed IAHED woukl be delNered outgde ofthe UK. It would provide students internationally with the opportunrty lo enter higher ed[￿alK)n irrespective of whether the student aimed to enter UK hvjher educab'on {delivered overseas through a transnational arrangement. or in the UK) or higher edUcat￿n in another country. The consultstion outlines proposed requirements of AVAS in order for them lo receive a license lo validate the inlernational dipl￿a. ProFosals also covered the required English language Pfoficiency level and permitted delNery modes of the dipbma. The consultation proposed that AVAS would inibally be sut4.ect to a h¥￿Year pikjl penod during which licences will be issued on a counlry-by-eountry bashs. Thereafter. an AVA could beoyne eligible for a fiv&year lull international licen￿. Assurance and enhancement QAA'S assurance and enhancement represent integral parts of the Agenw's operat￿nS. Across all nations of the UK and intemationalty. oijr programme of work has been tsilored to deliver significant impact and ensure we continue to deliver exCel￿nCe, independence and trust in qualrty asswance arKI enhancement. Scotland This year has seen scthe svJnrfKant ¢han9es within our aFproach to assurance and enhancement. In Scodand, we opefaled the fitsl ￿￿ewS under the new Tertia Enhancement Review method in line v4rth the Scottish Funding Cs)uncil'$ new Tertia Enhancement Framework. This was a sMJnrficant milestone as It meant for the first time QAA was OFerating a consistent review method across an entire tertiary sector. including all of Scotland's Col￿geS and universrt*s. Quali Additionally, wofking with partners irKluding the Col* OevelL4)menl Network and Sparqs (student partnerships in qualty Scotlandl. we undertook an exciting series of Discovery Days where Pfovider representatives from across Scotland were encouraged to come together lo co4evelop project proposals for Scotland's Tertia Enhancement Pro ramme ISTEPI. STEP is the national enhancement programme for the Scottish tertiary sector. 11 is designed to enable Scotland's college5 an¢J universties lo work Ir>aelher to imlxove and enhance learning. teaching, the sludenl experience. and staff development arJoss tertiary provision. The Discovery Day proied proFos81s were developed into fuu fuAL*"ng requests. many of which will be taken forward in the next year. Wales In Wales, we have engaged with the new regulator, Medr. in their first year of operation. We have engaged posits.vdy wrth Medrfs Qualty C¢mmrttee, and have been working ckjsety with Estyn. the educatK>n and training inspectorate in Wales. We have ccffnmenced a joint project with Estyn (funded by PAedrl looking al instrtutK)n processes for selfevaIuat￿n. wrth a view to producing some common exFe¢1*￿)nS and guidance across the tertiary landscape. Addilionalty, we have Supp￿ted a range of other quality enhancement and ¢ontinuou$ improvemenl xlivities in Wales on topics such as mIcrc￿￿edent1aIs. academic integrity and degree apprent￿shlpS. We intend to engage further with Medr during the devel¢Jpment of the Quality Framework (part of their overafching wuktory arr8ngtsnent5} lo determine how we can best support them. and the sector in Wales. going forward as the new arrangements bed in. From an assurance persFective in Wale5, we delivered tr*0 su¢cessfvl rewews under the Quali Enhancement Review method folknwing consultalion and engage￿￿nI wlh the sector in the wevious year. Northem Ireland In Northem IreLand, we continue to cc¥nmunicate effectively vrith offic4.als in the Department for the Economy over potential fvture arrangements for qualty assurance and enhancement. In April 2025, we held our annual enhancement corbferen¢e in Bewast for Northern Irish providers. We brought together ￿preSentatIveS from across the UK nations for this eonference lo share wacb.ce and eX[•￿nCe. something we a￿ unqLrely placed to do as Ihe UICS independent qualtty body. England In England, we also completed the first Elective ual Review. This new review method. designed for pro¥￿erS regislered with the Office for Students (Ofs), assesses providers against the European Standards and Guidelines and results in a published report that can be useful for inlemal and extemal $￿ehObjers to understand how effectively a provider is managing the quality of ts provision and lo demonstrate its ccmnmitment to the value of extemal qualty assuran￿. Nurslng and Midwifery Council {NMC) Across the UK we delivered qualty assurance wews for nursing and rn￿￿rfery educath)n on behalf of the Nursing and mK￿rfery Council {NMCI in our contracted role as the new Quality Assurance ServKe Provider. We have W0￿e￿ closely the NMC and instttutions over the first year of this contract to Introdu￿ the new approach and have ￿ndUCted a significant number of revwis, exceeding initial expectslions ￿ the volume of activity required, in order to enable the NMC lo make robust and timety wulalory d￿l￿On$ on Complian￿ with theiT Standards for Nursin9 and Mittsrfery Education. As we enter the second year of the contract, we are worting wrth the NMC on developing the approach in light of exper￿nCe and expanding the work into other types of quality assurance aclivty. UK and International membership of QAA Our membership programme. wh￿h operates across all nalions of the UK and for inlefnational member institutions. conts.nued to develop this year. We fvnded 18 projects under our Collaborative Enhancement Projects prc•Jramme. particul8rty fccusing on projecls which deliver tangible outputs that are useful acros5 the h￿her educalK)n sector. The pr￿ramme was once again swnfficanlty ¢)versubscriL*d, and therefore we have Started to look at how we mighl amend our approach in the next year lo ensure that the projects are as wide-ranging and impacfful as possible. INe have continued lo offer online and ifyperson ¢￿fe￿nceS and a series of Ihemed nets¥ork events to bring together Practitioners. as well as continuing to add 14)ical materials, publications and tc¥Js to our Membership Resources websrte. VIÈ have also reflected carefulty on member feedback over the past year and have begun lo pul in place signilieant changes that will see a revamped membership programme from 2025-26. We have invesle(I in our Membership DelNery team, bringing in experts with experience of working in multiple higher and further educatbjn settings across the nat￿ns. QA4 Membership remains highly responsive to the challenges facing the sector, and we strongly bdieve that participatin9 with membership activrties and resources delivers Val￿ for money for wovidefs in helping buikl good practice and effictncy into their ILKal o)ntexL Educatlonal Oversight Review Across the UK we launched our new Educational Oversi ht Revie•¥ (EORI. This replaced four previous methods for higher education providers that require assessment to re￿1ve licence to recnjit internat￿nal students. yet fall outsh* of their respectNe country'5 quality assurance regimes. It was imperatsve to introduce a more streamlined and simplified review rnechanism for these institulb)ns for 202*25. as the review cyde meant many providers were due th￿r full review in this year. The upxlated methc*l was able to assess against the 2024 edition of the UK Qualty Code. hdping ensure it remains o)ntemForary for many years to come. International reviews Inlemationally. we continue lo conduct extemal quality assurarKe reviews against nternats'onally recognised standards through our Intematsonal auali Reviewv IIQRI and Intemalional Pro ramme Acueditation (IPA) reviews. These independent peer reviews to accreditation by QAA and many higher educath)n institution5 and programmes in countries across Europe, Asia and the Middle East have benefitted from Ihern in the last year. In additKtrn. we have conducted reviews of several institutsons in West Africa undef our IQR and IPA {ACE Impact) rev*w methods. These forn part of the Africa Higher Education Centers of Excellence (ACE) Worfd Bank woiecL whith 15 aimed al capacty building in higher educatton institutions in the region and enables institutions to receNe formal accreditation from QAA. Capacity building Finally, we continued to develop and deliver servKes to support instrtutions in England and internatsonally th* seek our expert aokn and guhdance in capacity building and developing internal quality assurance and enhancement mechanisms. This in¢lu¢Jes support for institutions in England planning to apply for Ofs wislration or degree-awarding powers. The range of training ac1iwt￿S and analytul report5 pfovKled to providers through this seryice has broadened over the year to reflect the emergrng needs of provKlers in England and those of providers in other countries. This &tivty also includes work with international organisalions, quality assurance agencies and govemmenls. predominandy in Asia and the MKldle East, lo provide advte and gufvJan¢e on iTrwunty regulatory systems and quality assurance frameworks. partic.ularty wrlh regards to the development of transnational education and training. We witinue to receive highty positive feedback from those using these services on the value and benefits to their specrfK cont￿. International Quallty Evaluatton and Enhancement of Transnational Education IQE-TNE Scheme The QE-TNE Scheme. commwioned by Universths UK and GuildHE. completed the fourth year of ils five-year cycle with county-specthc activty in Malaysia, India and Oman. Engagement in Ihis acts'vty grew over the ￿st year with all unNersitses in Scotland becoming members of the scheme. Resources generated through th15 prqect continue to be shared wf(h this ex¢lu$ive nehvork to inform the growth, susl8inability, qualtty and enhancement of UK transnational educatKJn. Work has begun on desoning a new successor scheme to commence after Ihe exisling scheme c(Anes to an end in ju￿ 2026. Internatlonal accredltation seNices a￿'S globa &credital*)n seNtis ao a key olwnent of our posit*)ning as a world4eadirvJ quality agency, supporting higher educab.on w0v￿er$ across global markets lo delNer a positive student experience. ThIrty-th￿ provideis from around the globe have now achieved 12M global accreditab.on wrth an addrt￿na1 14 providers at drfferent stages of the International Oualty Review IIQR) prcKess. Four providers have been successfully reaccredited after the oroinal frve-year accreditstion expired. The t¢)p market for successful IQR accredrtalion is the UAE and the Arabian Gulf in general, although there are accredrted institutions in the Asia Pacifi¢, CentrJ Asia. Europe, Afn"ca and wider MKldle East region5. At the programmè level. in 202￿25. QA4 accredited its fir* MBA programme for the Univers Cdlege of 8ahrain in ad(lition to three English programmes at the Gulf UnNerW for Science and Technology in Kuwait. Intemational research. training and advisory services The ￿pUtatIOn of the UK higher educab.on sectr* is vital to rts success. QAA'5 inlemalional work, and the positive relatN)nships we have with a huge range of intemational stakeholders. supports and promotes this repuL*ion. Thi5 in tum 8lknYs UK huher education providers lo build meaningful and equitable partnerships auoss the globe. and ensures that the UK continues lo be vithved as a partner of ¢hO￿e. We work as a trusted adviser to govemments, fvnders and regulatw bxlies arouNJ the world, providing expertise on qualty assurance and internationalisation strategies. In 2024- 25. we delNered seven projects for the Department Business and Trade focused on Ihe removal of market access barriers to increase UK Internat￿al educati￿ exports across Kazakhstan. Uzbekistan, Qalar. Saudi Arabia. China and Hong Kong, Velnam. and India. We have secured market access fvnding for 2025-26 to continue the work in Kazakhstan and Uzbekistsn, and for a new priiect focused on South ￿"a (Nepal. Bangladesh and Sri Lankal. The India project will also continue into 2025-26 due lo geopolitul challenges. We wiif also conkn'nue delivery of system4¥ide nats.onal prqects fvnded by the British Council in Vietnam and Uzbekistan and new prqects in Sri Lanka and Kazakhstan. Many of these projecls reflect a need for assuring the quality of transnab.onal education and international partnerships as well as intemal quality assurance systems. We expect all these projects lo contnue into 2025-26. This work directy benefits the UK higher education sector by creating enabling regulatory and policy environments for TNE and building capa¢ty in quality assurance. These inilialives strengthen the UK'S positTr?n as a gknbal leader in education, and ensure that UK inslrtutions are better posrtHMed to establish and grvw hity4ualty intemats.onal partnerships. We deliVe￿d another successfvl Intematicinal Quakty Aswrance Programme {iaAP) in L¢ndon this summer. with 41 attendees from 20 international higher education sectLMS. Delegates had the opportunity to vtsil Richmond American Univetsty and the University of London to talk with senior quality teams as part of the week-long actiVrt￿$. IQAP provided an opportunity to discuss future collaboration at a nat￿)￿al or institutional level with delegates Ind￿ating interest in internat*)nal a¢credit*ion. membership and advisory Services. We are looking forward lo hOSt￿g another iaAP in 2026. Leadership Domestic engagemont QAA'S public affairs engagement has continued to p)sition QAA expertise at the heart of government policymakiryj across the UK. In England. our ￿adershiP wod( has centred around delivering insight lo government on sector approaches lo partnership provision and credit transfer for lrfelong learning policy develoynent Our arta￿￿S and inswht5 provide valuable evidence base for policymakers. As part of the higher education refom) process in Eng￿nd, QAA delivered a workshop to the Deparhment for Educat￿n on the topic of'raising leaching standards,. This workshop was impactful a$ it directty infomied the forthcoming white paper. ensuring that our expertise contributes lo the develcpment of hIgh￿Uality eduCat￿n standards. In Scotland, we have Strengt￿ed our stakehohjer relath)nshps auoss the tertiary landscape to support the implementation of the new le￿.ary framework. Our representslion of the Scottish Government on Var￿￿S 8ologna Fdl(r•V-Up Group wod(ing structures ensures that the Scottish landswe is renected in European prcNJress on qualty assurance. In Wales, QA4 has been working closety wrth Me(tr and the Welsh G¢wemm&nt as the new regulatory framework for quality has been deVekn￿d and consulted on. Thts collaboration 1$ essent￿1 for ensuring that the new framework meets the needs of the Welsh educatKJn sector and maintains high stsndards of qu￿rtY. Engagement with the Department for the Econry in Northem I￿larKI has supported ongoing conversations regarding the future qualty system in the Northern Irish sector. Artificial intelligence remains a Pr￿rity t¢)pic for QAA'S leadership work Covering t￿1¢$ such as AJ integration in learning and teaching. QAA'S support for the $ector on Al, and utilising Al tools in extefnal quality assurance, QAA has spoken at events in Belfast. Estonia. London, arKI the Netherlands thring the ￿K￿)￿"n9 peric*Y. International engagement In 2024-25. we signed of ￿neWed partnership agreements with a total cé etght quality assurance bodies in Thailand, Ukraine. Malay%a. Amienia. I￿land, Kazakhstan, and tNdO bodies in Mauritius. These partnerships are crucral as they enhance our gk)bal ne￿￿Ork. tyJild the foundali¢)n for future collaboralion globalty. and support ¢)ur intemational projects. In Oecernber, we hosted an International Partner Forum focused on the quality assurance of online learning, attended by over 40 repre5entalNe5 of overseas quality agencies from across Afrio, Asia, Europe and the MKJdle East. This forurn wa5 impactful In fostering collalxjralion and sharing best practices. ulb"matdy improving the quality of online education globally. We have formally contributed to the UK Govemmenvs new International Education Strategy. due to be published in the autumn, and continue to work dosely with the Departmont for Business and Trade IDBTI on projects desi9ned to resofve regulatory barriers to UK ethjcalion. Our involvement in thv&e initiatives is driven by our commitment lo making UK education accessib￿ and competrtive on the internat￿nal stage. Our attendan￿ at and contributions to key conference5- induth.ng the Council for Higher Education Accredilalion (CHEA} conference, European Asso¢kglion for Quality Assuranee in Higher Edueats"on IENQAI Members. Forum, INQAAHE o)nference. Educabon lthrld Forum. UK-Nepal Busiftess Forum, a D8T-led misS￿n lo Saudi Arabia, a British Expertise Internalional-led miss￿n lo Kazakhstan, a 8ri115h Embassy-led conference in Indonesia. Going Global in NKJeria. Briiish Council Deep Dialogues. UK-Tunisia Commission for Higher Education and Scienlrfr Research. and Universrtres UK IntematKJnal {UUKil TNE conference. Europe net￿￿th, and PVC Forum - have been instrumental in positioning us as leaders in the field. These engagements alkm u$ to Influen￿ global edL￿allOn polries and practices. enswng that our voice is ￿rd and our expertise is utilised. We have been awarded Erasmus+ fijnding to deliver a prciect on the 'Robust Quality Assurance of Transnatsonal Educatson,. led by ENQA, and continue lo work closely wrth the British Council to devekjp a global framework for transnatK>nal education. supporting QAA'S work to ensure TNE meels high standards arKI benefrts students worl¢Jwide. Looking ahead We expect the financhgl pressures thal are evident in the sector in all four nations of Ihe UK lo continue," in that challenging domestic context. we are keener than ever to listen to the needs of our members and the wider sec*or, and to ensure that our services address their challenges In ways that prowde the maximum value. Many prov*Jers will no doubt continue lo reduce theif Cost base, ￿￿uding through painfvl headcount redu¢tKJns,' we do antsupale some moves towards institutKsnal consolidation- al the extreme end there may even be instilulional closure5. Bul for every promder. new technobJ*s present an opportunty lo innovate In leaching and leaming. QAA is embraung new technotogy t￿, and our restructure in 2024-25 will be followed next year and beyond by fvrther work to transform the Agency's underrrfnning processes and techrM)logy. In Scotland, we look forward to building on this yearfs successfvl start to Scotland's Tertkgry Enhsncemenl Programme and the first of the Ter1iary Qualty Enhancement Reviews. an¢J we are keen lo use the insights from Scotland's leading ro￿ in bringing the tertiary sector together lo benefit polymakers and across the UK In Wale5, we will continue to advise Medr as it deveknps its approach to quality fvrther. and will continue lo work in partnership wi(h Estyn_ In Northem Ireland. we continue to hoFe for a relum to active qualty assurance through a rw review method. Our inlemational work continues lo sup￿1 the UK seclor. and next yearwe kqan to laU￿h the next iteration of our enhancement scheme for UK transnalional education. Financial review The financial statements have been prepared in xcordan¢e with the requ1￿MentS ol the Charities SORP. Resources eypended on tharilable ath'vrt*s are shown split tsehveen the aims of our 202￿27 strategy. The ana￿51$ of expenditure. note Inole 61 Wits these categories dty¥n furlher and indudes an alocats.on of SUPF*Nt O)5ts acros5 the aims. Results QA4's 2024-25 activities were funded primarily through mwnbership from htgher education providers. conlr¥ts with the higher educalb)n funding t#)dies. witra¢tS WTth regul*ory bodies. intemational revw a¢tiw"ty and tharges for oversight and review of attemalive providers of hvJher education. Add￿"Onal inc¢yne was generated through invesknent income. QA4's net expenditure for the year erKled 31 Juty 2025. before recognising inveslment gains, was £574,74812024-. nel income £2.934.172}. After recognising gains on investments of £348,32712024." gains of £372.4661. the nel movement in funds for the year was deGrease of £226,421 {2024". In¢￿ase £3.￿.638). The accumulated funds at 31 July 2025 a￿ £6,169,00512024_ £6.395.4261. Income Total income as shown in the Statemeni of Finanoal A£tivit*s (SOFA) increased by £1,293.373114.8%1 to £10,CE1,872 belween 2023-24 and 2024-2S. Income from charrtable aetivilies slv)ws an increase of £1,318.902 {15.5%). The increase in income betr*veen 2024 and 2025 was mainty a$ a resutt of a new three-year contract with the Nursing and MK*wrfery Council {£1.764,531) and an increase in Educational Oversight income. This was offset by a decrease in international income of £189,030 and decreases in UK membership income of £189.201 and UK sales of £90,988 where a m challenging economic environment exists. Income from investsments has dewased by £24.401 18.7%) to £255,70912024." £280,111). The investment income is interest Irom cash deposits. together wrth divhdends and interest frc¥n fixed asset inveslments. Investment returns are discussed in the Treasury management section below. Expenditure Total Charitable expenditu￿, after restruclure costs of £739.596 in 202&25 and the pension provision release in 202>24 of £2.680.761. increased by £4.802.293182.3%1 to £10.636,620 as shv*m in the SOFA beiween 202>24 and 2024-25. Expenditure on charitable ath"vits"es, before reStrl￿tUre costs and pen*on provision movements. increased by £1.374.476 {16.2%1 to £9,876,880 (2024." £8.502.4041. The incTea5e in expenditure rellected the movements in income. The new Nutsing and Midwrfery Council contract and Educatwal OVers￿ht costs increased expenditure by £1.502.433. This increase was partialty offset by membership. Intemat￿al and UK sales actsvity decreases of £522.137. There was an increase cl £394.180 in leadership and busines5 $UPPQrt function5. A breakdown ol charitable expenditure behveen the strategK aims 15 shrAvn in note 5 on page 38. An anatysis of ¢haritable expenditure be￿een direct costs WKI support costs is provK4ed in the'tolal charitsble expendtiure. nole {note 6, page 39). Balance sheet Totsl funds on QAA'S balance sheel are £6.169,CWJ5 {2024'. £6.395.4261. The net book value of tangible and intangible fixed assets hehl by the charity decreased by £38,164. as dep￿CiatIon exceeded caprtal expendrture. The nel twk value offixed asset in¥eslments has increased by £530.494 to £7.118.251. Nel current asset$ have decreased by £726.287 mainly a5 a resuft of the restructuring costs reducing the level of cash held. The increase in debtors reflects the accrued income frorn Nursing and Miowrfery Counol Ihat was invoKed post-year end. This increase has been offset by an increase in deferred incorne as membership renv4val was launched a month eartier_ Reserves policy QA4's ReseNes policy establishes a target rary of free reserves, tsking into account. the financial impact ol risK" the volatilrty of current and future in¢ome SI￿am$., the acl¥on required in the event of income reductK)n" and the impact of fvlure commitments. The resultant target range of free reseives. following the annual review. is set al £1.2-£2.3 million. The level of avaiL4ble free ￿seNe$ of £5.7 mil>￿ is above thts range. The Board is considerin9 plans tr) reduce the level of f￿e reserves. A$ part of the trustees. reSponsib￿rtIeS regarding the apprcpriateness of adopting the going concem ba￿$ in preparing the financial statements. a range of scenarios has ￿en considered. The assumpts.ons mrjlelled are based on the estimated potential impact of kn¢)wn changes in the sector and regLtlatsons, along with our prowsed responses over thg course of the next 18 months. On the basis of this revivw. these fnancial slatements have been prepared on a going concern basis. whith the trustees consider to be appropriate based on the results for the year ending 31 July 2025. and forecasts and eash Ilow projections prepared for the period lo 31 July 2027. The Cash fiow projections indicate that the chartty will be ab￿ to meet ils liabilib'es as they fall due and will be ab￿ to operate wrthin the farilibes Currently available. The Iruslees consider that there are no rnaterial Uncertainl￿S over the charitable company's financial viabilty. QAA holds reserves for three main reasons." to secure rts lon*temi positi to delwer the medium4erm obJ'et#ives in the ¢X4 strategy, by ensuring that reserve levels pffjwde a cushiort against medium4eJTn business risks and take full account of the costs of medium-tem) Obl￿11¥e$ to ensure that it can carry out the programme of work detsbled in the next yearfs annual plan - example. thr¢￿9h meeting approved shortfalls in short-term aciwrties that are not fijlty funded. A designated Innovation and Development Fund is set askle'for innovatton in products and services for the long-term benefrt of UK higher education.. The opening balance on the fund was £198,821. ￿Th11St the restnKture took pla￿, nil was expended during the year. The Business Transfom)ation Fund had further transfers in of £500,0￿ and £200,000 during the year (agreed by Board at their meeting5 in Odober 2025 and December 20251. At 31 July 202S, QA4's free reseryes as defined ty the Charities SORP were £5,743,549 12024.. £S,892.0291. Treasury management The main principles underpinning QA4's treasury management policy are lo ensu￿ that.. aAA has adequate ¢a$h and working capital lo enabfe it, al all times, to have Sufficient funds av•lable lo achieve rts business objectives QAA invesknents are secure- this is achieved by ensuring that its authorised investments refied a risk-averse and prudent attitude towards the organisations with whKh funds may be deposited, and limtts its investment actM"t￿S to those approved QAA ￿h￿VeS the maximum retum on ts investments, taking into account the other key principles QAA minimises the risk of fraud or error in its Ireasury management a¢b"vrtes- this is achieved by designing suitable systems. procedures and contingency management arrwements in ord8r to minirnise the risk of fraud or error. During 2024-25, the inveslmenl appro&h agreed by the tnjslees continued to be lollowed. with avaiTrable funds being nolion81ty split into three tran¢hes and managed as follchVS.- 8hort4•rn1 worklng ¢apilal- he￿j by QAA'S bankers. HSBC Bank plc, and managed intemalty m¢dium4•rn1 cash funds- invested with HS8C Bank plc and Lloyd$ Bank plc and managed inlemally in ac(Y)rdance with our cash flow plan lo meet short-term workng capital requirements longer4erni reserves - over £7 millw has twn plawl with Rathbones Investment Management Liniled IRathbonesl for discretionary investment in listed shares and gill Funds placed with Ratht(Jnes a￿ invested in a Chanty-Sr￿ffj￿ fund whith is subject to ethical investment constraint5. During the year. these constraints were exiended to exclude investments in fossil fuels. Investment income in the year is attributable to intere51 receivable of £53.397 from short- lern working ￿pital balance$, together with interest and dmdends of £202,312 ￿ceiVed f￿el￿a$se1 investments. The market value of the investments is £7.1 mdlb)n (2024." £8.$ millKJn). The nel unreali8ed gain in the market value of funds held at 31 July 2025 was £345.32712024'. loss £12,129). The surplus of interest and dividend ￿ceipts after paying management charges. together wth nel gains or k)sses real￿￿. continues to be reinvested. This appfoach ts being closely m￿ltored and managed to ensure that the prirKiples of the treasury management are being meL Directors. report Structure, governance and management QA4 is a private company linited by guarantee. and a reg￿tered chanty in England. Wales and Scotland. Our four ¢ompany members were, as of 31 Juty 2025.. GuildHE Limrted Universities S¢olland Universitie5 UK univers￿e$ Wales. In the event of wnding up, the liabilty of our company members is linited to an amount not ex￿edIng £1 per mernber. We were established urbjer a Memorandum ofAssociatson * are govemed under our Articles of Asswalion, which set out our constitutw)n and objects. Our objects are". Ihe promotion and maintenance of qualty and standards in tertiary education in the UK and elsewhere.. the enhancernent of teathing and learning, and the idenlrfication and promots.on of innovation and good practi￿ in teaching and beaming. Ihe proVis￿n of Informats"on and the publulion of reports on quality and Standards in teftiary educathjn in the UK and elsewhere., the proVis￿n of adV￿e to 9overnments, as requested. on access course recagnrt￿n and in relation to all or any of the above objects. Governance As part of QAA'S onwing commitment to uTh>yJ 9￿ernance and ￿dershIp, the Board members c￿mPleted a Board skills aud￿ One4cTrone annual conversations continued lo be held bets¥een the Chair and irKIMdual Board members. During the year. the Board has also reviewed and. where approprrate. approved.. QAA'S risk appelile and lolefance leve Annual Plan Annual 8udget Access to HE Recognth'￿ Scheme Variou5 polirAe5 and prccedures. irduding". Consolidated Appeals Pr￿l￿re Process for cons4derati￿ of observalw)ns for NMC reports and cLYnplaints Safeguarding Pol QAA Scheme of Delegated Authority Treasury Manayement Policy Recruitment and appoinlment to the Board Our Board direct¢)ts are also our ITUStees for the purwses of charity I￿. The Articles of Asswalion were amended to alk)w the Board to cw)t up lo thfee fvrther members lo ensure it has the full complement of skills and experienee neeessary lo refflect the complex and dNer5e nature of tertiary educab.on in the UK and intemat￿nalty. The Articles now allow for up to 20 trustees to be appointed to the Board as folbws. Serving a three-year term. then dKJibl8 a second tlyee-year term.. three mwnber5 fKxninated jointfy by three funding bodies for UK higher education (Department for Education (Northern Irelandl, The CommisS￿n for Tertiary Educats"on and Research {Medrl. and the Scottish Funding c￿n¢11). and appointed by the Board; lour members nominated jointty by the UK higher edueation representative bodies IGuildHE. Universitse$ Scotland. Universities UK and Universities V4alesl. and appointed by the Bort. one member nominated by the representathve for eolleges in the UK. and app)Inled by the Board: six independent members appointed by the Board: one irKlependent member appointed by the Board who, at the time of appointmen( 1$ engaged wholty or mainty in the govemance or management of an alternative provider of hwher education.. up to three further members cwjted by the Boarf who can provide knowledge and understanding of S￿h other areas as the Bo¥d may consider desirab￿. Serving a one-year temi. Ihen ehgible for a second one-year temi.. one independent member appointed by the Board who, al the time of apwntment. is a registered undergraduate or postgraduate sludenl, an elected student offKer of a student Un￿n, or an e￿cted student officer of a student representath b&ty.' one mernber nominated by the N*K)nal Un￿n of Students and appointed by the Board. Our Board membership represents the dNersty of UK higher education. including students. with a rich mix of skilb and eXper￿n￿. Our six independent Board mernbers have. in line with the requirements of our Artides, experience in industn"al, commercial OT financial matters. or professional wxlice. We advertise publidy to recwrt our independent members, following an assessment of the skills we need on our Board. Our Nominab"on and Remuneration Committee advises the Boafd lo ensure our se19cbon and recrurtment prcKess is transparent and fair_ All 8oard members are non*xeculi¥e directors. They gNe their time voluntsrily and do not receive any remuneration or benefits from the charty. Expenses daimed by Board members during 2024-25 are covered in note 10 of our finanual slalemenls. Board responsibiltlies Our Boards principal responsI￿lIbe$ inctude". appro¥irwJ our missKJn and strategic vigon. strategic plans. annual plans and budgets, and key perfonnance Ind￿10T$ ensuring the establishment and monilrAw@ of systems of corttrol and a¢countabilty ensuring prC￿Se5 are in pla￿ to monitor and evaluate our performance and effectNeness appointing the Chief Executive and putting in plxe sUrIab￿ arrangements for monrtoring their perfolmance acting as our principal financi￿ and business authority ensuring we keep proper books of accounts appTovirvJ our annual rewjrt and financial ststements overall responsibility for our assets. propety and estate. The Board has delegal&J resp)nsibilty for the daY-l￿daY management of the eharty to our Chief Executive, in ac£ordance with a scheme of delegation. In discharging these responsibilities. the Chief Executive is advised and supported by the Executive team and wwjer Senior L&*rship le￿n. Board member induction Ne￿ appointed Board fflembers are provided the folbMng thxum8nl$. and s￿n a deClarat￿n to confirm that thèy have reviewed aThl undefstood them.. Charity Ccrfnmission pu￿iCatI¢￿S.' The Essential Tmstee and the Charity Govemance Crxle Office of the S¢ottrsh Charity Regulator publication.. GuKl8nce and Goc¥l Pra¢tA¢8 for Chorify T￿sleeS QAA publication.. QAA Code of Gcoy PRcbce in Govemance (including guidance on ethi￿1 c￿duc[ sLitutory dubes and iesponsits'lilies. and g¢4)d gov&mance). AJI new Board members have an indNKlual induction programme of meetings with the Chair and senior staff. This introduces them to our governan￿. operath?ns and strategic plans. Our Dire¢toi of Corporate Affairs {Company Secretary) and Assistant Company Seerelary are available to supwrt Board Tr￿mbers bn diSCh￿l￿g their statutory duties. providing advice and guidance as required. Board member aclivities A typical year for one of our Board members is likety to indude.. lendance at four Board meetings (one day w rneeting) a strategi¢ away4day attendance at the OAA annual conference attendance at committee meelings and working groups convened for speafic purposes las required). At least tsvo Board me8ling$ per year are usualty hebj in person: others may be held online. Committee meetings are usualty held onk'ne. In addition. our Board members may be invited to become invow in a part￿ular area of the Agency's work. by providing advice and support lo QAA stsff, which, in turn, enhan Board understanding and scrutiny. During the year 2024-25. the average Board meeting attendance was 8¥h19Q% in 202> 24). Indbvidual Board mernber attendance was as folkxs.. am• Attendance for 2024-25 {out of four meetin outof4 outof4 O (out of 01 3(outof3 1 {outof 1} outof4 oulof4 ohn Sav**ins Beech livef Turnbull imon Gaskell ueRi Rachid Hourizi Karl Le decker Chair enia Levanlis Peter Vermeulen Fazal Dad ex Fraser Phil Oeans dette Hutchinson Richard Khaldi Dani Sa hafi Caroline Carter ex Stanle Luc Jones am Plantsn Moira Fischbacher-smilh Nichola Callow Christian Brodie imena Ajamo O loutof 1) out of 4) 41outof4 outof4 outof4 outof4 3 (OLrt of 4) outof4 outof4 outof4 outof3 OLrtof4 outofo outof3 outof1 outof3 Chair Speufied qUQTum, as detailed in our AJtKles of ASs￿lat￿n. was reached at all meetiThJs. Board committees Ther& wwe seven Board wnmrtiees in operth.on during 2024-25. plus the Consultative Board. which bfin9S together Senior stskehoklers ffom the tertiary sector. Al Commiitees have individual terms of reference and Board attendance al committees is reported al Nominal*)n and Rernuneration Committee_ Corporat¢ rnatters: Audit and Risk Committee N¢Jminalion and Remuneiabon Commiltee Advisory: QAA Wales strateg￿ Advisory Commrttee QAA Su)tland Slrategic Athisory Committee Student Strategic Advisory Committee Consultslive Board NEW in 202>26.. Nursing and Mwthvrfery Council Contract Advisory Cunmittee Op•ra¢lon$: Access Regulatffi and Lwising C(wnmitlee Advisory Comrnrttee on Degree Awardir¥J Powers QAA Board of Dlreclo From 1 August 2024 to 31 Juty 2025. the fdlowng seNed as directors and trustee$ on the QAA Board.. Ind•pend•nt ffl￿nbe Simon Gaskdl Fomer President and Pmcipal. Queen Mary University of {Chairl Christian Brodie {Chairl Rachid Hourizi London lappoinled March 2019, ser¥ed to March 20251 Chair of United Learning, former Chair of Student Loans Company and other bod*s lappoinled March 20251 Director, Inslitijte of Coding, UnNersty of Bath (appointed March 2022) Peter Vermeulen (Honorary Treasurer) Ch￿f Financi￿ Officèr. University of Bristol (appointed March 2023) Ladan Saghafi As50a"ate Professor of Practice. 8runel Unrversity London lappoinled December 20231 C￿b.ne Carter Non-practising SO1￿ltOr. Director and Tw$tee (aFpointed December 20231 Richard Khal Charnbers ￿"reCtOr. Martland Chambers lappoinled January 20241 Independent m•mber: altemative"provider Alex Fraser Ch￿1 Éxecutive, The London Instrtule of Banking & Finan appointed June 20231 Independent member: studenttr, Sophia Xenk4 Levantis PhD StudenL Universty of Bristol {appoint8d October 2022, $eNed to October 2024) Jimerba Alamo SU President, University of Bath {appointed October 2024 Nom5nated joinlJy,by GuildHE L.imited.'Universities Scotland-. UnIVe￿itieS UK.- and Universities Walesr Karl Leydecker Senior ￿￿PrinCipal. University of Aberdeen lappKsinted June 2022) Sue Rigby Vi￿-Chan￿l10r. Bath Spa University (appointed October 2019, served to October 2024) V￿e-Chance11or. $alf￿￿ Unr¥ersity lapp)inled September 20211 Pio VIC￿Chan￿l￿r (EdU￿t￿n and Student Experience), Bangor Universty {appointed October 20241 Vice-Principal A¢ademi¢ Development. Anglo Ruskin UnNersity (appointed October 20241 Nic 88￿h Nichola Call Lucy Jones ominated jointfy.by the Department for Education.{Northern Ireland)..the kn- Y s. Commission f(>rJTerttary Education and ReSea￿h and the Scottish Funding Council*.' John Sawkins Oeputy Principal (Education and Student Lifel, Professor ol ECOnom￿s, Heriol-watt University (appointed October 2019, served to June 20251 V￿PrinCipal for Learning and Teaching. Universty of Glasgow {aPF￿Inted June 20251 Pro VKe£hancellor (Teaching and Leamingl. Professor of NeuropsydK)logy, 8angor Unrversity lappoinled September 2019. served to September 2024) Pro VKeihancellor. ULster UnNer$ity (appointed June 2023) Pro VKe-Chancellor, UnNersity of Wales Trinity Saint DavTrd (appointed September 20241 Nomlnated by the Association of Colleges.. . Moira Fischbacher-smilh Oliver Tumbull Odette Hutchinson Miry￿1 Plantinga Fazal D&J Prinupal & Chief ExecutNe. 81ackburn Col (appointed Marth 2023) Nomlnat¢d by the Natlonal Unlon of Students exander Stanley VKe•Preshlent {HNJheT Education). NUS18ppointed Juty 20241 CothOPt•d rn•M￿r , Phil Deans UnNersty President, Richmond, The American Inlemational Univerwty in London {appointed March 20231 Organisational structure Our Exe¢utive team in 2024-25 wa5.. Vicki Stott, Chief ExecutNe Caroline Biackburn, Chief Operating and Finance Offi￿r Alastair Delaney. Executive Director of Operations (until September 20241 Tom Yates. Execulwe Direclor of Cwrate Affairs Ni¢k Bayley. Executive Oirector of Business Devebpment and Engagement (from February 20251 Rob Slroud, Executs"ve ￿leCtOr of Qualty Assurance and Enhancement Ilrom October 2024) The Executive team was supported by the wvjer Senw)r Leadership team. Pay and remvneration Our Nominath)n 8nd Remuneration Committee afvises the Board on the performance ofthe Chief Executive and Ex￿ul￿e team. appropriate remuneration, and severance payments. In advising on settityj the pay of the Ch￿f Executive and ExecLrtive team. the Committee takes into account the skills and exper￿n￿ requi￿ for each of the roles, and the remuneration in sectors from which surtable candidates fof such ptrsls woukd be found. Remuneration for different jobs is validated objectively, using the public sector as a comparator. This iAcludes Icoking at salary survey data for wmparat4e roles from a number of sectors, induding eharilies, higher education and organisations within the kJ¢al area. Salary increases for all colleagues are negotiated between Executive. HLrnan Resources. and the Public and Commercial Services Union IPCS). Corporate Social responslbility and sustainability QA4 is committed to working in an ethrcalty and socialty responsibbe manner aeross all areas of our business. Our work safeguards standards and improves the quality of UK higher education, wherever Il 1$ ddivered around the workl. Our business approach considers the impact of our work on the environment. our staff. suppliers, b)cal communities, the higher education sector. and wider soe*ty. In 2024. we commiiled lo a 2040 Net Zero largel. Consequenuy, in May 2025, we rneasured our carbjn eMi$s￿n$ to ueate a baseline me¥suremenl and quantsfy the size of the required reductb)ns to achieve this. Our most recent CSR policy (running from 2023) sets out our aims and the xtmties in whth we engage lo supwt them and how 12AA surports the United Nations SUsta￿able Develowient G¢)ab'. To uphold an ethical. transparent business culture and approach to our work To reduce our negalTrve impact on the enwronment To conth.bute to the development of our communities To respect our colleagues and encourage ￿tr development. Our performance and impact is m¢)nitored ty our Sustainability and Corporate Social Responsitmlity Committee. which reports to the SenK)r Leadership team and the Boartf s Audit and Risk Committee. Data prot￿tIOn There were no reportable in¢tdent$ invol¥ing personal data during 2024-25. Fundraising activities The charity had no fundraising activit￿$ requiring disck)SU￿ under S162A of Ihe Charities Act2011. Equity, diversity and inclusion statement We are ccfflmitted to promoting equty. diversrty and inclusion IEDI) in all aspects of our work. We recognise the value that dNerse perspectives bring and the importance of incluswe pra¢ti¢e in delivering hwJh4Juality oUtC(￿eS across UK higher educatKJn. Equity is a core principle in our approach to quality assurance and enhancement. We bel*ve it is fundamental to a high-quality educational experience and ￿traI to the expectslions that students should rightty have of UK hNJher educalKJn providers. EDI is a shared responsibilrty across the Agency. with strategic oversight from our Executive team, supported by Human Resources and OrganisatK)nal Develotxnent. We regulaty remew our intemal policies and wactw lo ensure they reflect our values and foster an inclusive culture. To support wntinuous improvemenL we cary a triannual Agency-wffle EDI suryey open to all ￿lleagUeS and revEwers. The data helps us better understand the dwersity of our workforce and identfy areas where further action is needed. We remain committed to making meaningful progress on EDI and embedding it in how we work. lead and deliver our respon$ibilibe5. Delivering public benefrt We have a duty, under the char￿eS h£t 2011. to rep￿1 on the publK benefit that we deliver. Our trustees have regard to the Charrty Commissh?n's guidance on public benefit- a summary of whth is iSSLFed to our Board members on appointment- and are satisfied thaL through our work lo supp)rt the UK lerbary educatson sector. including hglping to provide access lo higher educatw for many students and w0￿"n9 more generalty in the interests of students. our public benefit requirements have been met. Welsh Language Compliance Noti¢e QA4 continues lo Str￿then its c¢rnitinent to the Welsh language. as sel out in the compliance notice with which QAA has a duty lo c￿nPty. QA4 continues to produce annual reports for Ihe Welsh Language CMirnis5i)ner that note how we comply. as well as steps lo tske lo further compliance. The report is considered by OAA'S cross-organisational Welsh Language Working Group and approved by the Audrt and Commrttee. European Standards and Guidelines Compliance ￿th the ESG is fundamentsl for QAA, not onty to enable all of QA4's work in Scotfand, Wales, Northern Ireland and intemationalty. bvt also to the philosophy of eollaborative. peer4ed qualty as5urnnce that Unde￿inS OAA'S core purpose. The European ASsocial￿n for Qualty Assurance in HvJher Educalion IENQA) review in March 2023 found QAA lo be compliant with the ESG. QAA is impbementing its action plan in respect of recommendations and suggestion5 for further improvement arising from the rewew sutrmitted rts folIc￿-UP repjrt on aclions tsken to ENQA in June 2025. Relationships wlth related parties QAA'S subsidiary- QAA Enterprises Limited. a prirfate cfynpany b'mited by share$- is governed by its own ArtKles of Association, wh￿h sel OLrt its constitutKJn. The subsKliary has been dissolved after this reporting year. I QAA Board members com￿eted a declaration of interest on appointment and any conflicts specific to a Board meeting are recorded and minuted in th8 meetsng. Principal rlsks and uncertainties Our Board is uhimaldy reswnsible for our approach to risk management. which is sel out in our risk management policy. ￿ record strategic risks in our Strateg￿ risk register, and operabonal risks ale managed through operational risk registers. which may include registers dedicated to Specffj￿ prqects or aclivities. The strategic risk register is reweweA by our Audil and Risk Cs)nmtttee at each of ils meetings. and by the Board at each of ils meetiThJs. The risk5 considered signfficant at the inherent lpre-mil￿￿Ortj stage during 2024-25 included risks to the Agency's revenue a$ a consequence of ongoing financial pressures in the secior and risks involved in navigats.ng the varied and evolving Stakeholder landscape in the various nations of the UK Mitigations for these risks included the organisalional restructure that t¢)ok place in 2024-25 to give the Agency a more resp)nstve operating model with Stronger business (leveloFffjenl and engagement Capabilities. Cyber-security remained signfficant operational risk even at the residual Ipost-mityalionl stage. despite comprehensive mitKJations induding annual IS027001 audrt, peric*lic penetration testing and the continued use of muhi-factOT authenb"catK)n leGhnolr)3y acr(tss the Agency. The Board is Satisf￿ that risks and uncertainties are being appropriatety monitored and managed. Reference and administrative details Regist•r•d nam• Other namos us•d by the company Ctjmpany r•gistration numb•r The Quality Assurance Agency for Higher Education QAA QAA SeotlarKI. QA4 Cymru 03344784 {England and Wales) Charlty rnglstration number¥ 1￿2746 (England afKI Waks) SC037786 (Scotlandl Scrtjlhgale House. Southgate Street. Gloucester GL1 1UB s￿hgate House. Southgate Street, Gloucester GL1 1UB Roglstored and principal office Op•rntlonal addr•ss•s Ct)mpany Secretary S•nior management Iwlth del￿al¥d a￿hOrIty) Bank•rs Tom Yates. Oirector of Corporate Affairs Stott, Chief Executive HSBC Bank pk. The Cross, Gloucester GL12AP and Uoyds Bank plc. 10 Gresham Street. Lmdon EC2V 7AE InYHtment managers Rathbones Invesknent Management Limited, 1 Curzon Street. London W1J 5FB Bardays Private Bank {Bardays Bank PLCI. 4042 Queen Square, 8ristol BS1 4QP shakespea￿ Ma￿neaU. No 1 Colmore Square, Bimiingham 84 6A4 Crowe U.K. LLP, 4th Floor. Sl James House. Sl James Square. Cheltenham GL50 3PR Solicito Indop•ndont auditor Responslbllltles of the tnjstees and dlrectors The Iwstees (who are also directors of The Quality Assufance Agency for Higher Education for the purposes of ccffnpany law) are responsible for preparing the Trustees, Annual ReporL including the Strategic Report and Directors. ReF¢)rt, and the financol ststements in accordance with appluble law and United Kingdcrfn Generalty Ac¢epled Accounting Practice (United ￿"ngdorn Aecounling Stsndardsl. Company law requires the trustees lo prepare financial ststements for each financial year. Under company Lwi. the trustee5 must not approve the financial statements unks$ they are satisfied that they gwe a true and fair view of the stale of affairs of the charity, and of the incoming resources and application of resources, including the income and expenditure, for th* peri¢)d. In preparing these fr￿ncIal state￿nts. the trust&s are required lo." sel8Ct suitable a￿nting pol￿ES and then apply them constslendy observe the methods and prinCip￿S in the CharrtEs SORP makejudgements and esb"males that are Teasonable and prudent stste whether ap￿￿le UK accounting Standard5 have been followed. Subject lo any material departures disdosed and explained in the ￿ar￿la1 ststements prepare the finanual statements on the going COn￿M basi4 unless rt ts inappropriate to presume that the ch*itable ccthpany will contsnue in kyJsine5S. The trustees are resFQns￿1e for keeping a¢*uale accounting records that are sufficient to show and explain the charitsble company's Iransacts"ons. disdose wrth reasonable accuracy at any time the fina￿la1 posttion of the charitable ccmpany. The trustees should be assured that the financial ststements cc#mpty wilh" the Companies Act 2006". the Charities and Trustee Investment IScolland} Act 2005". the Chariiies Accounts {Scollandl Regulations 2006 las amended)." and the provis¢on$ of the charity's eonstrtution. They are also responsible for safeguarding the assets of the charity and hence f¢y taking rea$C￿able steps for the prevenb.on and deteclion of fraud and other irregularities. Information to audltor In the case ol each of the persons are dKectors ofthe company ai the dale when this rgport was approved.. in 50 far as each of the directOf5 of the company al the date of approval of this report is aware, there is no relevant audit iAfomatTron linformabon needed by the company'$ auditor in conne¢tion wrth preparing the audit ￿port) of which the companvs audilor is unaware each director has taken all the steps thal tlw should have taken as a director in order lo rnake themsefves aware of any relevant audrl information an¢J lo establish that the company's auditor is aware of that information. Auditor A resolution to reapwinl Crtrwe U.K LLP as audrtor to the company was 4reed at our Annual General meets.ng in December 2025. The Strategc Report, Oirectors. RepNt arKI financial statements were approved by the Board on 10 December 2025 and were suned on its behalf by". Christian Brodle Chair of the Board of Director6 om Yates ompany Secretsry fv,k_ (UL Independent Auditor's Report to the Members and the Trustees of The Quality Assurance Agency for Higher Education Opinion We have audited the finanual statements of The Qualrty Assuran￿ Agency for Huher Education Ilhe charitable company,) for the year ended 31 Juty 2025. which comprtse the Statement of Financial Acbvities. the Ba￿nCe Sheet, the Statement of Cash Fl¢)ws. and notes to the finan￿al sL*ements, including significant accountin9 policEs. The financial reporting fr￿eWork that has been applied in their preparatKJn 15 applicable law and United ￿ngdorn Accounting Standards, induding Finan¢ial Reporting Standard 102 The Financial Reporting St8ndanl appI￿a￿le in the UK and Republ￿ of Ireland {Unrted lfjngdorn Generally AC￿pIed Accounting Practice). In our opinion, the financial stslements.. give a true and fair VEW of the stste of the charitable company's 4lairs as at 31 Juty 2025 and of its incorne and eypendilu￿. for the year then ended: have been property prepared in accordance wth United Kingdom Generalty Accepted A¢¢ounling Prnct￿'. and have been prepared in aceordanee with the ￿ullements of the c￿pan￿ Ad 2006 and the Charities and Trustee Investment Iscdandl Act 2005 and Regulations 6 and 8 of the Charities Accounts (ScotlarKI) ReguLgtr"ons 20C6 (amended). Basis for opinion We conducted our audtl in acccrfdance with Intemational Standards on Auditing {UK) IISAS IUlQl and applicable law. Our wponsibiliks under those standards are further described in the 'Audilor's responsibilities for the audtt of the financial statements. secthM of our report. We are independent of the charitsble company. in accordance with the ethThl requirements that are relevant to our audit of the finanual statements in the UK induding the FRC'S Ethical Standard, and we have fv￿Illed our other ethical responSi￿.11t1eS in accordanee with these requirements. We believe that the audit evhlence we have obtained is sufftient and appfopriale lo provide a basis for our opinion. Conclusions relating to going concern In audib'ng the financial slalemenls. we have concluded that the truslee5' use of the going concern basis of accounting in the preparation of the finanoal statements s appropriate. Based on the work we have performed. we have not idenlffied any material uncertaint￿$ relating to events or condrtions that. indtvidually or collectNely, may cast Stgnifie8nt doubl on the charitable Company's abilty to continue as a going concern for a period of at least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilrties and the resp)nsibilitses of the trustees with respect lo going concem are described in the relevant sections of this reporL Other information The trustees are responsible for the other inform*ion contained within the annual ieport. The other infom)abon comprises the informatKJn induded in Ihe annual report. other than the financial slalemenls and our auditorfs report thereon. Our Lyinion on the financial statements does not cover the other informats.on and. except to the extent otherwise explthy sialed in our report. we do not express any fomi of assurance condusion Ihereon. Our responsibility is to read the other information and. in doing so. consMJer whether the other infom)alion is materialty inconsistent wth the finanual st*emenls or our knowledge obtained in the audit or Othe￿￿ appears to be mater￿[1¥ mi$stated. If we identtfy such material inconsistencies or apparent material rnisstatemenls. we are required to determine whether this gives rise lo a material misstatement in the fInanCk￿ statements themselves. If, based on the work we have performed. we conclude that there is a Materi￿ misstatement of this other information, we are req￿￿ed to report that facl. We have nothing lo report in this Tegard. Opinions on other mattern prescribed by th• Companies Act 2006 In our opinion based on the work undertaken in the course of our audit.. the infomiation given in the tnjslees. repcvl, which indudes the directors, report and the Strategic reFort prepared for the purpM)ses of company for the financial year for which the financial ststemenls are prepared is consistent with the financol slalemenls." and the strategic report and the dire¢tors' re￿1 induded wiihin the trustees, report have been prepared in accordance with applicable legal requirements. Matters on *thich we are required to report by exception In light of the kn¢*￿edge and understanding of the charitsble company and their environment obtained in the ¢ourse of the audrl. we have not Nlentrfied material misstatements in the strategi¢ report or the directors. report included ￿thIn the trustees, reporL We have nothing lo report in respect of the follow"n9 matters ift rela￿n lo whith the CompanEs Act 2006 and the chanb.es Accounts (Sco1￿) Regulat￿n$ 2006 requires us lo report lo you rf, in our opinion". adequate and proper acccHJnting recc*ts have nol been kept., or the financial statements are rKJI in agreement wth the accounting records and ￿Um$,. or certain disclosures of trustees. rununerat*)n sF￿fied by law we not made.. or we have not received all the inf0m￿tiOn and eXpla￿*￿S we require for our audrt. RKponsibillti¢s of tn*tees As explained more fulty in the tnJstees' responsibilitres ststement set out on page 23 and 24. the trustees Iwho are also the directors of the charrtable company forthe purposes of company law} are responsible for the preparatiLM of the finan¢tral statements and for being salisfied that they give a true and fair wew, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are Iree frcffn material misslalemenl, whether due lo fraud or error. In preparing the financial statements. the trustees are responsh* for assessing the charitable company's abilty to continue as a going ¢oncem. dI￿lOSIng. as applicable. matters reL4ted lo going concem and using the going concem basts of acc£Junting unless the Iruslees either intend to liquidate the charits￿e company or to cease operatM)n$, or have no realistsc alternatNe but to do so. Auditorfs rnsp0nslbl1iti￿ for th• 8udit of the financial statements We have been appointed as audilw under ￿tion 44111{c) of the charib.es and Trustee Investment {Scollandl Act 2005 and under the Cornpan*s Act 20C6 and report in acLordance with the Acts and ￿levant regulations made or having effect the￿under. Our obJ"ectNes are lo obtain reasonable assurance aboul whether the fin￿￿1 statements as a whole are free from material misstatement, whether due to fraLKI or error. and lo issue an auditor's report that indudes our opinKJn. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit condLKted in accordance with ISAS (UK) will a￿ayS delect a material misstalwnent when It exists. ML%ststements Can arise from fravd or error and a considered material rf, indiv￿￿allY or in the aggregate. they could reasonabfy be e￿cted lo infiuence the economrc deusion$ of users tsken on Ihe basis of these financial slalements. Details of the extent lo which the audrt was considered capable of deleth'ng 1tregularrt￿$. including fraud and non-compliance with law$ and regUlat￿nS. are set OLrt below. A further description of our responwbilities for Ihe audrt crf the financial statements is located on the Financial Reporting Council's website at.. WWIV. .uklwJitors nsibilities. This description fom)s part of our auditorfs reporL Extenl to which th• audit was considered rApable of detect•ng irregul*ritie& including frnud Irregularit￿$. including fraud. are inslances of non•compliance vth laws and regulations. We identified and assessed the risks of material misstatement of the financial statements frorn irregularities, whether due to fraud or error. and discussed these ￿e￿een our audit team members. We Ihen desyned and perf¢Jfmed audrt procedures responswe to those risks, including obtaining aLKlit evidence suffiC￿nt and appropnate to provKle a basis for OUT opinion. We obtained an understandirvj of the legal and regulatory frameworks wrthin which the charitable company operates. focusing on those laws and regulat￿$ that have a direct effect on the detemiination of material amounts and di5dosures in the finanual slalements, including financial reporting legislatbon, the Charty SORP IFRS 1021 and tax regulations. We assessed the required compliance with these I￿S and regulations a5 Part of our audit procedures on the related financial statement rtems. In addition. we considered provisions of other laws and regulations that do not have a direct effect on the financial statements bul Com￿l3￿ce wth which might be necessary to the charitable company's ability to cperate or to avoid a materk81 penalty. Auditing standards limit the required audrt procedures to identfy non-compliance wrth these Laws and regulations to enquiry of the trustees and other management and inspection of regulatory and ￿al correspondenee, rf any. The laws and regulations we consthred in this context for the UK operation5 were the General Dats Protecb'on Regulation. and employment legislation. We also considered the opportunities and in¢entives thal may exist wthin the ¢harrtablfy company for fraud. We thntified Ihe greatest risk of material impact on the financial ststements from irwularib'es. induding fraud, to be within the timing of recognition of contract income. and Ihe override of Controls by mana9ement. Our audit pr￿dureS lo respond lo these risk$ in¢luded enquiries of management and the Audit and Risk Committee about their own identification and assessment of the risks of irregulariknes. sample testing on the posting of joumals. designing and performing audit proCedU￿S over the kn.ming of ￿ntract Income, reviewing regul*ory correspondence with the Charrty Commission and Scottish Charity Regulator. reviewing alxounting estimales for biases. and reading minutes of meeting5 of those charyed wf(h governance. Owing lo the inherent 1mnital￿ns ￿ an audit there is an unavoKlable risk that we may not have detected some material misststements in the finanaal statements, even though we have properfy planned and pertomed our audit in accordance with auditing standards. For example, the further removed nonn: Investment management costs Raising funds Charltable actlvrties Totsl expenditur• 20,144 20,144 10.616,476 10.636.620 12.682 12,682 5,821,645 5,834,327 Net gains on investments 348.327 372,466 Not {exp•ndltur•llln¢ome and net movement In funds forthe year {226,421) 3.306.638 Reconclliation of funds Total funds brought foTh¥ard 6.395.426 3.088,788 Total funds ¢arri•d forward 19 6.169.005 6,395.426 The statement of finan¢01 xbvi1￿$ includes all gains and losses recognised in the yoar. All inwme and expenditure derive from continuing ath"vities. The notes on pages 33 to 53 fonn part of these financial slalements. Balance sheet as at 31 July 2025 {Comp•ny number. 033447841 2025 2024 F6x¢d assets: Intangible fixed assels Tangible a55ets Investments Total fixed a￿ets 62.706 47.525 7.118.2S1 7,228.482 97,759 50,636 6.587,758 6,736,153 12 13 Current assets: Deblofs Cash at bank and in hand Total current assets 14 1.724.909 2.684.315 4.409.224 1,203,101 3.711,835 4.914,936 Liabiliti•s: Cieditors- amounts falling due within one year Net current assets 15.316,775) 15,¢)96,2001 (907.SS1) 1181.2641 Total assets less ¢urr•nt liabiliti•s 6.320.931 6,S54,889 Provision for liabilitses Pension prOVi￿On liabil Total net assets 17 18 1151.926) 1159.463) 6.169.005 6.395,426 The funds ¢f the group and charity: Designated funds General funds Total funds as at 31 July 19 19 315.225 5.853.780 354.821 6,040,605 6.169.005 6,395,426 The notes on pages 33 to 53 fcffi) part of these finan¢iaJ Ststements. The financial ststements were approved authorised by the Board on 10 December 2025 and We￿ sisw)ed on its behaw by: Christian Brndio. Chalr of tho Board of Dir•cto Statement of cash flows for the year ended 31 July 2025 2025 2024 Ca$h flows fr¢Jm operating activities: Net cash provided by operating xbvibes 21 11.073.422) 5,636 Cash flows froffl Inv•stlng activiti•8: Investsnent incomg Proceeds from sale of investments Purchase of investments Purchase of intangible fLxed assets Purchase of tangible fixed assets Net ¢ash provided byl {used In) investing activities 255.709 280,111 3,310.387 6.608,939 {3.488.527) (6.137,731} 127,641) 49.928 149.1161 702,203 Change in ¢•sh and Cash wulvalonts In the yeav 11.023.494) 707,839 Cash and cash equwalents at the beginnirKJ of the year Cash and cash equivabents al the end of the year 4.382.010 3,674, 171 23 3.358.516 4.382,010 The notes on pages 33 to 53 fomi part of Ihese finan￿al ststements. Notes to the financial statements for the year ended 31 July 2025 Legal status The Quality Assurance Agency for Higher Educth"on (QAAI is a charitable ¢>)mpany limited by guarantee. QA4 is registered with the Charity C￿lM￿Ssion EngLand and Wales (registered no.. 1062746) and the Scottish Charity Regulator {registered no.. SC037786). The charity was incorporated as a company limrted by guarantee with Companies House England and Wales {registered no.. 033447841. Its registered and principal office is Soulhgale House, Soulhgale Street. Gloucester. GL1 1 U8. Accounting policies Basis of preparation The financ?al statements have been prepared in ￿CordanCe wth the Charil*$ SORP IFRS 102}- Accounting and Reporh"ng by Charits"es." Statement of Recommended Practice appli¢able to charities preparing their accounts in accordance with the Financbal Reporting Standard applicable in the UK and Republc of IreL4nd IFRS 102} {effective 1 January 20191. the Financial Rep)rting Standard applicable in the UK and Repubk'¢ of Ireland IFRS 102} and the Companies Act 2006. QAA meets the definition of a publ￿ benefit entty under FRS 102. Assets and liabrfities are initially re¢ognised at historical cost CK transadb)n value Un￿55 Othemse stated in the relevant a¢counting policy. Consol¢dated financtal statements have not been prepared on the basis that the subsKIBry, Enterprises Limited. is unmaterial to the ffinancial position, perfomiance, and cash fk)ws of the chanty. Accordingty. the financial statements present the results of the parent entsty onty. Preparation of the *¢¢ounts on a golng ¢on¢wn basis As part of the trustees. responsibilities for the appropriateness of adopting the going concern basis in preparing Ihe financial slalements. a range of ￿nario5 has been considered. The assumptions modelled are based on the eslimaled potential impacl of known Changes in the sector and Tegulatsons. aloro with our woposed responses over the course of the next 18 months. Judgements and k8y sour¢•s ol ostsmation unc•rtalnty The preparatM)n of the financial ststements requires Mar￿gernent to make judgements. estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reFK>rte(l revenues and expenses during the year. However, the nature of estsmation means that athial outcomes could ¢Jiffer from those estimates. Judgements and key sources of e*imatKJn u￿ertaInty that have had the most significant effect on amounts recognised in the finan￿al statements are inclLKled with the relevant accounting poly below. Fund accounting Unrestricted funds are incorning resources recewed or generated for expendrtLtre on the general obJ"ectives of QAA Designated funds are unrestrKted fvnd$ of the charty which have been set ashde by the trustees to lund parts"cular fvture actNities of the Charity. 2 Ac¢ountlng policies Iconllnuedl Income QAA'S activities are funded prynarify through contracts with the higher education funding bodies and UK governments. and through subscriptions from higher educatirm institutions", it does not raise income through fundfaising. AJI income has been a"ccounled for when ihe charity has entitlement to the funds.. any perfomance issijes attached to the ilem{s) of income have been met. and it is probabk that the income will be received and the amount can be measured re1￿bfy. Expenditure and the basis of all0&￿10n of ¢08ts AJI expenditure has been accounted for on an awLtrals basis and has been recorded as attributable to one of tsvo categories -'raising funds, (the cost of managing the Charitys inveslmentsl and 'charilable actiVTties' as sh￿￿ in the SOFA Re¢Jundancy and lemiination sts onty owir where necessary and are accounted for on an accxuals basis when the commitment to temiinate a post on the grounds of redundancy or lemiinate an empk)yee's contract has been made. The ¢haritsble actiVit￿S are further drvided into the four strategic aims of the charty. Wthin charitable activities, the expendilure is claSSrf￿ as'direct costs. or'support costs. as shcNm in the 'total charitable expendrture, note. Staff numbers and costs were alcKated". directty to one or more of the three charitith actmiw as'direct costs.. or directly lo goveman¢e as'support costs., or apw)rtioned to the th￿e charitable activities and govemance as'support costs, using the staff numbws already attributed to those ath'vilies. Non-pay Costs were alkcated". direclty to one or more of the three charitable actNTtkes as'direct CQSts', ¢x directty to goveman¢e as'direct costs. or'support costs., or apF {151.9261 315,225 Totsl net awls 31 Juty 2025 5.853.780 315.225 6,169.005 General Oesynated Total 2024 fuThJ funds Tangible fixed assets Intangible fixed assets Fixed asset investments Cash at bank and in hand Other nel current liabilities Provisions 50.636 97.759 6.587.757 3.357.014 13,893,098) 1159.463) SD.636 97.759 6.587.757 3.711.835 (3.893.0981 {159,463 354.821 Total net assets 31 Juty 2024 6.040.605 354.821 6.395.426 20 P¢n$lons (defined benefft schemes) QAA participates in defined benefrt pensIC￿ schemes. The employer wsion contr￿ul￿n5 payable were as foll¢)ws- 2025 2024 Universities Supefannuation Scheme {USSI SuperannUal￿n Arrangejnents fry the UnNer&ty of London (SAUL) 580.404 190.287 620.875 229.313 770.691 850,188 EM￿0ye1 ¢ontriixJtions outstsnding at the b4￿ce sheet date (included above) 103.998 94.6S7 In addition to the Final Salary section wrthin USS for current members. empbyees joining the Scheme after 30 September 2011 wdl join the Cawr Revalued Benefrts section (SU￿.0cl to Some transrtional rules). Fiom 1 April 2016 all USS rnembers were moved lo the Retiiement Income Builder section. Similarly. employees joining SAUL after 30 June 2012 will join the Career Average Revalued Earnings (CARE) sectson of that scheme 1suty.ect to scme transitional rvlesl. On 1 April 2016 all Final Salary members were moved to the CARE sethon. The Contributic￿ rates as a percentage of pensionable salary are as follow5." Employer Employee uss Retirement Irume Bulder tion From 1 January 2024 14.50% 6.10% SAUL Ca￿er Average Revalued Earnings section Frcxn 1 January 2024 21.0 6.00% Unlvorsities Superannuation Scheme The latest available coMp￿te actuarial valuation of the Reb"rement 1r￿rfne Builder is al 31 March 2023 (the valuab'on datel. which was carried out using the Projected unil melhod. Since the instrtutKJn cannot identify its share of USS Reb"rement Income Buikler {defined benefit) assets and liabilities, the followbng disckJsure5 rellect those relevant for those asset5 and liabilities as a who￿. The 2023 valuatKJn was the seventh valuation for the scheme under the scheme•spe¢ific funding regime introduced by the PensK)ns Act 2004. wthich requires schemes to have sufficient and appropriate assets to cover their technul provisions. At the valuation date, the value of the assets of the scheme wa$ £73.1 billion and the value of the scheme's technical provisions was £65.7 billion indi￿ting a Surplus of £7.4 billK)n and a funding ratio of 111%. 20 Pensions (defined benefrt schemes) (contlnuedl The key finanaal assumptions used in the 2023 valualion are described betr￿. More detsil is set out in the Slalemenl of Funding Prinoples. CPI a3swnpb.on 3% p.a. {based on a l¢JYJ tem) average expecl&Y Sevel ofCPI, ly￿J￿ ov￿￿ent¥￿ the terrn mark¢t eXFeCtthsl 8￿efits wth no cap". CPI assumption plLLS 3bps Beneffts subj.ect to a'soft cap. of 5% IFYovith"ng lnftat￿nary irueases up to 5%. aTrJ halr of any exce55 tnlFab'on over 5% up to a maximum of 10%)". CPI assum on minus 3b 1.0% p.a. lo 2030, ￿dUcIng to 0.1% p.a. frorn 2030 Peftsi¢)n inueases Isu4"ect to a floor of 0%) RPVCPI gap Discount rate110ry4ard rates) Frxed interest gill Y￿￿j CLxve plu> pr￿eti￿meTrt 2.5% p. . Post-rets"rement'. 0.9% The main demographic assumption used relates to the mortality assumptions. These assumptions are based on anatysis of the scheme's experience carr￿d out as part of the 2023 aduarial valuation. The mortality assumpbons used in these figures are as follcms.. 2023 valuation Mortality base table 101 % of S2PMA'IKJhV for males and 9S% of S3PFA for females. Future improvements lo mortalty. CMI_2021 wrth a srnwthing parameter of 7.5, an initsal addition of 0.40A p.a., 10% w2020 and w2021 pararnelers. and a kJrKJ term improvement rale of 1.8% p.a. for males and 1.6% p.a. for fema￿$. The current h.fe expectarKies on Tekn"rement at •3e 65 ¥e." 2025 23.8 25_5 25.7 27.2 2024 23.7 ales cur￿n11Y aged 65 (years} Females currently aged 6S lyearsl Males currently aged 45 (years) Females currentty aged 45 lyearsl 25.6 27.2 Supernnnuation Arrnngernents forthe University of London QM participates in the Superannuatim Ar￿g￿ents of the Universty of London (SAULI. which is a cenlrali5ed defined benefrt %heme within the United lQngdcth and was contracted out of the Second State Pension {prior to April 2016). 20 Pensions (defined benefrt schemes) (conlinued) SAUL 1$ an indepen¢Jentty managed pension scheme for the non-¥*J8mic staff of over 50 colleges and inslitutKsns with links to higher education. Pension benefrts acuued within SAUL ￿[rendY build up on a Career Averago Revalued Earnings ICAREI basis. QA4 is not exFected to be liable to SAUL for any other current parts"cipating employ*s obligations under the rules of S4UL, birt in the event of an insofvency of any participating employer within SAUL, an amoLtnt of any pension shortfall (which cannot otherwise be recovered) in respect of that employer may be S￿ad xross the remaining participats'ng employeis and reflected in the next actLbarial valuation. Funding policy SAUL'S slalutory funding objective is to have sufficient and appropri*e assets to meet the costs incurred by the trustee in paying SAUL'S benefits as they fall due (the 'TeChni￿1 Provisions,). The trustee adopts assumptions whth. taken as a whole, are intended to be sufficienuy prudent for pensions and benefrts already in payment lo continue to be paid and for the commitments that arise trom members. accnjed pension rNJhts to be met. The TechnKal ProvIs￿S assumptK)ns indude appropriale margins to for the possibility of events tumin9 ¢Vt worse than expected. However. the funding method and assumptions do not completely remove the risk that the Technul Provisions could be insufficient to prov￿e benefits in the future. A fomal actuarial valualion of SAUL is carried out every three years by a professionally qualffied and independent actuary. The last actuarial valuation was carried out with an effective date of 31 March 2023. Infomial reviews of SAUL'S posth"on, reflecting change5 in market conditions, cash flow infoThnation arKI new accrual of benefft5. ¥e carr￿d out be￿een fomial valuations. The funding principles were agreed in June 2024 and are due lo be revie¥*Ed at SAUL'S next fomial valuation in 2026. At the 31 March 2023 valuath)n, SAUL wa$ 105% funded on its Tethn￿l Provi8*)ns basts. As SAUL wa$ in surplus on its Technical Provisions basis, no def￿rtS contributions were required. The trustee and the employers have agreed that the ongoing Employers. contributions fell from a rate of 21% of CARE Sakries lo 19% of CARE Salaries on 1 Septembef 2024. am participates in one defined contribution pension scheme. The assets of the scheme are held separately from those of the charty in an independentty administered fund. The pension cost charge represents contn"bub"ons payable by the chanty to the fund and were as follows.. 2025 2024 The People's Penwon 14.579 5.171 EmF4oyer contributions ¢)utstanding at th8 balance sheet date 1.878 561 21 Reconclllatlon of net income to net cash flow from operating activities 2025 2024 Not (•xpnditurny income forlhe yoar 1226,421 3.306.PA1 Adjustments for. Depreciation charge Loss on disposal (Gains) on invesbnents Investment income Decrease in debtors (Decrease) in creditors (Decrease) in wovisions Net ¢ash (used in} I provided by op•rating activilles 65.805 90.189 7,855 1348,3271 1372.4661 (255,7091 1280.1111 1521,8081 907.756 220.575 1711.8611 17.5371 {2.942.3671 (1.073.422) 5,636 22 Analysis of cash and cash equtvalents 2025 2024 Cash al bank and in hand- liquhl assets Cash at bank- fixed asset investrnents Cash at bank and in hand at the end of Ihoyoar 2,684,315 674.201 3.358,516 3.711.83S 670,175 4.382,010 23 Reconciliation of net debt At Cashfiows 1 August 2024 At 31 July 2025 Cash Cash equivaknt5 Total 3.711.835 11.027,520) 2.684.315 670,175 4.026 674,201 4.382.010 11.023.494) 3,358.516 Glossary FRS 102 The Financial Reporting Standard a￿liCable in the UK and Republic of Ireland S2P State Second Pension SAUL sUperannUat￿n Arrartgements for the UnNersty of London Challties SORP Accounting and Reportiro by Charits"es.' Statement of Reccfflmended PraCt￿e applicable to ChanI￿S preparing their accounts in accordance Nwth the Financial Reporbng Standard applicable in the UK and Republt of Ireland (FRS 1021 (effective 1 January 2015} SOFA Slalement of Financial Activty uss Universities Superannuation Scheme The Quality Assurance Agency for Higher EducatKJn 2025 Southgale House, Soulhgate Street, GI0￿eSter GL1 1UB Registered charty numbers.. 1062746 and SC037786 Tel.. 01452 $57000 aa.ae.uk