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2021-03-31-accounts

REGISTERED COMPANY NUMBER: 03465914 REGISTERED CHARITY NUMBER: 1066956

Report of the Trustees and Audited financial statements for the year ended 31 March 2021 for

The Council for Industry and Higher Education

THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

CONTENTS Page
Report of the Trustees 1-13
Independent Auditor's Report 14-17
Statement of Financial Activities 18
Balance Sheet 19
Statement of Cash flows 20
Notes to the Accounts 21-33

THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

The Trustees, who are also directors of the Charity for the purposes of the Companies Act 2006, present their report with the financial statements of the Charity for the year ended 31 March 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' (Charities SORP (FRS 102)).

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

03465914 (United Kingdom)

Registered Charity number

1066956 (England and Wales)

Registered office

DC. 115 The Clarence Centre 6 St George’s Circus London SE1 6FE

Trading name

The Charity is trading as National Centre for Universities and Business (NCUB). Website: www.ncub.co.uk

Trustees

David Brown Professor Jean-Noël Ezingeard David Meads (appointed 11 February 2021) William Samuel Hugh Laidlaw Chairman) Professor Julie Lydon Professor David Phoenix Robert Rabone Professor Roy Sandbach OBE

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REFERENCE AND ADMINISTRATIVE DETAILS (continued)

Company Secretary & Chief Executive Officer

Dr Joe Marshall

Auditor

Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House, 108-114 Golden Lane, London EC1Y 0TL

Bankers

Barclays Bank PLC Bedford Square Branch 27 Soho Square London W1A 4WA

CAF Bank Limited 25 Kings Hill Avenue West Malling Kent ME19 4JQ

Metro Bank 120 Cheapside London EC2V 7JB

STRUCTURE, GOVERNANCE AND MANAGEMENT

1. Structure and governance

The Charity is controlled by its governing documents, a memorandum and articles of association and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The Charity is trading as the National Centre for Universities and Business (NCUB).

The Trustees of the charitable company (The Charity) are its Trustees for the purposes of charitable law and throughout this report are collectively referred to as the Trustees. For the purposes of Company Law, Trustees are the Directors of the Charity. The Trustees serving during the year and since the year end are given on page 1.

A Chief Executive is appointed by the Board to manage the day-to-day operation of the Charity.

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1.1 Trustee selection, appointment and competence

Trustees are selected for appointment from the “members of the Council” who are the nominated representative of each organisation that supports NCUB and serve on a wider Leadership Council. Trustee appointments are made by the general agreement of the Board of Trustees. Trustees are inducted into the Charity by the Chair and members of the Executive Team including an overview of the Charitable Articles, principle activities and governance responsibilities.

The Board does not conduct a formal annual review of board members although discussions are held on the approaching retirement of current members. New Trustees are provided with an introduction and induction through meetings with the Chair of Trustees, the Chief Executive and senior members of staff.

1.2 Investment Powers

Under the Memorandum and Articles of Association, the Charity has the power to make any investments which the Trustees see fit. As a practical matter such investments have been confined to those that clearly meet the Charity’s aims and objectives .

1.3 Charitable Objects

NCUB exists for the advancement of education, training, research and all kinds of learning by the fostering and promotion of mutual understanding, co-operation and support both in the UK and overseas between educational institutions and industry and commerce.

2. Aims and Objectives

NCUB is an independent and not-for-profit membership organisation that promotes, develops and supports university-business collaboration across the UK. NCUB is the only organisation bringing together universities and businesses to influence government and solve the country’s challenges.

NCUB is a strategic, cross-sector network linking universities, business and Government that provides the platform for members to engage on areas of opportunity. NCUB is a trusted expert on areas of policy important to university-business collaboration and has its own digital portfolio and analytics expertise.

Areas of research and policy focus:

Working with the national drivers behind the devolution agenda, looking at the different ways localities are choosing to inhabit it, and how that agenda is shaped moving forwards.

Reviewing evolving trends in collaboration, monitoring progress and showcasing achievements

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Our values:

3. Significant Activities

Much of the work focused on engaging NCUB members, public funders and key stakeholders around issues affecting university-business collaboration and in enhancing the UK knowledge economy.

3.1 Analysis, policy and engagement

a. State of the Relationship report

The State of the Relationship report is NCUB’s flagship report, which aims to summarise universitybusiness collaboration across the UK and provide an authoritative source on the spread and quality of collaboration activity taking place in the sector. A State of the Relationship report is published each year featuring a range of expert views and case studies.

The State of the Relationship 2020 marked the next step in the evolution of the report with a greater focus on forward looking, horizon scanning pieces. NCUB’s Collaboration Progress Monitor was updated. This provides a basket of hard metrics that will, over time, determine what is successful and where challenges remain. The flagship publication carried the voice of the NCUB public funders and members on the partnership between universities and business, supported by robust evidence gathered from multiple corporate and academics contributors across the UK.

b. Understanding Business Motivations to Invest in R&D

The Government has set a clear target for research spending to reach 2.4% of GDP by 2027. This will require a significant uplift of an estimated £17.4bn each year in business investment in R&D. But understanding the drivers, motivations and justifications for businesses to invest in R&D are limited.

NCUB has been asked by Research England, and for the benefit of UKRI more generally, to build a long-term source of evidence for both research impact and knowledge exchange developments. NCUB has worked with the Centre for Business Research at The University of Cambridge to develop and deliver a major survey of businesses, which has received over 3,000 responses. A report on the findings from this survey will be published in 2021.

c. R&D Taskforce

In July 2020, the Government published an R&D Roadmap setting out its ambitions for the UK to become a more R&D intensive, innovation-led economy and society. In response, NCUB formed a Taskforce of university and industry leaders to advise UKRI on how the

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ambitions of the Roadmap could be met through greater partnerships and collaboration. NCUB engaged extensively with its membership and wider stakeholders to produce an evidence-based report, four calls to action and ten recommendations. The report and recommendations were strongly welcomed by NCUB’s members and NCUB is developing its proposals further to feed into UKRI, BEIS and the Government’s planned Innovation Strategy.

d. Enhancing University Knowledge Exchange

NCUB is supporting the development and delivery of a new Knowledge Exchange Concordat (KEC). The KEC is designed to encourage universities to consider their performance in the wide range of aspects of knowledge exchanges and make a commitment to improvement in those areas that are consistent with their priorities and expertise. NCUB is a member of the Operations and Steering Groups leading the KEC, developing the KEC Portal and supporting the management and evaluation of the KEC’s development year.

NCUB also contributed to the shaping of the new Knowledge Exchange Framework (KEF), which was launched by Research England in Spring 2021 to increase efficiency and effectiveness in the use of public funding for knowledge exchange (KE) and to further a culture of continuous improvement in universities. Combined, NCUB’s work on the KEC and KEF helps to bring to the fore the business voice in both of these initiatives and encourage further enhancement of universities’ knowledge exchange activities.

e. NCUB analytics

NCUB is exploring how novel approaches to technology, including those developed through konfer (NCUB’s brokerage tool which facilitates university-business collaboration), can be used to develop new data analytics in areas of particular interest to NCUB members, stakeholders and Government. So far, NCUB has developed proof of concept demonstrators of three projects, which are being considered for further protype development. This includes (1) analytics that can identify and visualise mapping of capabilities across universities, experts and businesses in the UK in relation to industrial challenges and/or in specific localities, (2) analytics that provide insights into the downstream value attributable to grant funding of businesses by Innovate UK, and (3) a new dataset on researcher careers that can provide insight into mobility between academic and industry careers.

f. Understanding the impact of Covid-19 on Innovation

NCUB, in partnership with the University Commercialisation and Innovation Policy Evidence Unit at the University of Cambridge, has investigated the impact of the Covid-19 pandemic on (1) universities’ ability to contribute to innovation and (2) business’ R&D and innovation activities. Two surveys were developed and delivered, resulting in two evidence reports that provide important insights to UKRI, BEIS and Government.

g. Youth Unemployment following Covid-19

Since the start of the Covid-19 pandemic, NCUB has been tracking ONS data to understand the specific impact of the pandemic on young people’s employment opportunities. In response to

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rapidly rising unemployment, particularly amongst those in younger age groups, NCUB published a series of recommendations with urgent actions for the Government take.

h. Future Skills

The UK labour market was already changing significantly prior to the pandemic. In response, NCUB has been engaging with its members to understand how the future skills challenge can be met through greater collaboration between educational providers and employers. Specifically, NCUB held a series of 25 interviews with universities to understand how they are currently collaborating on longer term skills needs. These interviews are being developed into a report that will form the first of a series of investigations into collaboration on Future Skills.

A more R&D intensive economy will require changes in the R&D workforce, including a fundamental rethink of researcher careers and wider R&D related (and supporting) roles. NCUB’s R&D Taskforce highlighted that a more R&D intensive economy will not just need more people working in R&D related roles, but will also require greater mobility between industry and academia. NCUB is feeding into the Government’s emerging R&D People and Culture Strategy, and is developing a report, based on its analytics, of researcher mobility between academic and industry careers.

Additionally to developing policy evidence and recommendations, NCUB also showcases examples and case studies of university-business collaboration. As part of this, NCUB publishes a quarterly, thematic showcasing booklet with examples of innovative collaborations in particular areas of national priority. NCUB also shares collaboration success stories through its newsletter and website to promote and celebrate the benefits of collaboration.

3.2 Digital Platforms

a. Innovation Brokerage: konfer

In 2016, the Charity with partners at HEFCE, Research Councils and Innovate UK launched konfer – an intelligent brokerage tool – which was created to improve the ease with which universitybusiness collaboration can be enabled and maintained.

More specifically the tool:

Driving the creation and further development of konfer has been a commitment by the Government to help open-up collaborative opportunities within our world-leading universities to even more businesses especially to small and medium sized enterprises (SMEs).

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Accessing collaborative opportunities has traditionally been the preserve of large corporates with the capacity to search out and connect with different universities, smaller companies are underrepresented in interactions with the university research base. Konfer helps smaller businesses use one website to access opportunities across all UK universities.

The tool continues to be supported by Research England on behalf of UK Research and Innovation (UKRI). Following a launch of a beta version of the platform in November 2017, there was a new release in May 2019.

This was a major milestone for konfer providing a more stable and scalable platform to build future developments from. Through 2019/20 we released a number of key features including a sophisticated funding matching tool and a new major Business Directory that digitally profiles 46,137 companies across the UK to be able to match them to university opportunities.

In the reporting period, konfer met and exceeded its primary outcome target for 2020/21, achieving an almost five-fold increase in posted collaboration opportunities. The team engaged with a range of organisations and institutions to develop a healthy pipeline of opportunities for businesses and universities in the konfer directory.

In addition to use of the platform, training and support for Knowledge Exchange is now an ongoing activity for universities across the UK and there are good indications that konfer can be successfully embedded in university KE processes and systems.

Latest technical developments

The key element of the latest development period is an enhanced and more efficient smart matching capability to ensure maximum operation scalability. For example:

Proof of concept pilots

Two major pathfinder projects were completed in this period that exploit konfer mapping as well as IP data mining capabilities. There is now work in progress with appropriate stakeholders to develop these into technical solutions for innovation agency and support.

b. Work Experience: Placer

In 2017 NCUB established a formal Joint Venture vehicle with Unite Students and Jisc to develop a digital service for students and universities which showcased curated work experience opportunities from a variety of businesses, large and small, across all sectors. The platform was delivered in the form of a mobile app targeted to students, with Tinder-style functionality (swipe left/swipe right). After initial success, the app became obsolete. Placer is being wound down in 2021-22.

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4. Achievements and Performance

NCUB’s expertise and research output continues to be at the forefront of guiding Government policy on business-HE relationships. Our reports have been widely welcomed by our business and university members as well as Government and its agencies. Leading policy makers continue to seek our views, be involved in our groups and invite our participation in a range of strategy and discussion groups.

4.1 NCUB Publications

We continue to influence Government policies and actions and have produced a range of key reports including:

Our annual review of the latest patterns, trends and data on university-business collaboration, including early thought leadership on the immediate and longer-term impact of the Covid-19 pandemic on collaborations.

Our first joint report with UCI at the University of Cambridge, focussed on the results of a survey of university Knowledge Exchange Directors.

A joint report with UCI reporting findings from a survey of 500 businesses on the impact of Covid19 on their R&D and innovation activities.

4.2 Convening and engagement

We also held a number of high-profile events during the year including:

Networking and launches:

A major focus for 2020/21 has been proactive engagement with members. Due to the Covid19 pandemic, all engagement was virtual.

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5. Public Benefit

We fully complied with the requirements for a public benefit statement – this was approved at our Trustees’ meeting in 2008 and is listed below for compliance purposes. There are demonstrable benefits to the public from our work. Our mission advances the public good by:

  1. Facilitating a dialogue between businesses, universities and colleges so that individual learners of all ages can be better informed on the benefits of higher level learning including enhanced employability and personal good, cultural understanding and their development as global citizens as well as how such learning and understanding can advance the wider social cohesion of the UK;

  2. Advancing research and knowledge and our understanding of how knowledge can address global issues and enhance the UK’s productivity and competitiveness;

  3. Influencing the Government and its agencies so that policies can better achieve these aims, be more efficient and effective;

  4. Seeking to ensure that the UK has an internationally competitive system of higher education without which enhanced national prosperity and social cohesion will not be achieved.

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

Our work benefits all sections of the society in the UK and potentially outside the UK; we do not focus on any social group or geographical area. We try to be reflective of the whole spectrum of British businesses and universities. We continue to distribute all of our publications free of charge initially to as many organisations as possible who we think could benefit even when published only electronically. One of our key aims is to enhance awareness of the wider benefits of higher level of learning so that all can aspire and all who are capable participate. We seek to be international and open in our dialogue and consider that this helps our work to be balanced, informed and evidence-based.

6. Objectives and Activities

6.1 Fundraising activities

Factors outside the control of the Charity do have a bearing on our financial position at any one point in time. We endeavour to minimise the risk through securing a rolling (not time-bound) funding commitments from our members. The Trustees have actively helped us attract new members who also care about the UK having a world-class system of higher education that meets the needs of businesses and students.

6.2 Fundraising Policy

The Charity does not engage in public fundraising and does not use professional fundraisers or commercial participators. During the year there was no non-compliance of fundraising regulations and codes and the Charity received no complaints relating to its fundraising practice.

6.3 Financial Review and Results

The financial performance and position of the Charity is summarised in the Statement of Financial Activities and Balance Sheet set out on page 18 and 19. Total income for the year amounted to £2,586,383 (2020 - £2,565,312) less total expenditure of £2,789,214 (2020 - £2,207,250) giving an overall net decrease in funds of £202,831 (2020: increase in funds of £358,062).

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The reduction in income is due to a decrease in membership income related to the effects of the pandemic. Project income was received from Research England. As much of this funding relates to specific project work, it has largely been treated as restricted.

6.4 Investment policy

Our policy is to invest the majority of our funds primarily with the CAF Bank which provides both security and flexibility of access.

6.5 Funding Sources

A major element of our funding comes from the annual donations that our supporting companies, universities and other organisations make to NCUB as a registered Charity. Another major element of our funding comes from Research England which is now largely treated as restricted income. This enables us to recover some of our overheads and costs on the projects we undertake. We earn interest on the funds we have on deposits at the banks. We continue to increase wherever possible the amount of our project income and resulting contribution to overheads in absolute terms and as a proportion of total income.

6.6 Going Concern

The Trustees have acknowledged the latest guidance on going concern. The NCUB has sufficient financial resources to sustain their level of activity and has no external debt. The NCUB will endeavour to secure sufficient funding to meet commitments and enforce stricter controls on costs. The Trustees believe that NCUB is well placed to manage its risks successfully and have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. There are no material uncertainties about the Charity’s ability to continue as a going concern.

6.7 Remuneration Policy

The NCUB pay rate is reviewed annually by the board to take account of cost of living increases with any changes to the pay rates become effective from 1st April of each year.

The Charity sets the pay of its staff and key management personnel using industry benchmarks, performance reviews and appraisals. The Board approves any annual increases and any changes to the Chief Executive’s salary.

6.8 Reserves Policy

The reserves policy is reviewed annually and was last updated at the March 2021 NCUB Board meeting. The Trustees have set a reserves policy which requires:

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

Over the last few years NCUB has built up reserves from non-restricted income sources. It has ensured that there are formal reserve levels of at least £550,000 in place. As the balance in funding sources changes between Research England funding and membership subscriptions we will continue to review this reserves levels.

For the current financial year, with an unrestricted expenditure of £467,659, three months of core activities as per the budgets for 2021-22 would equate to £116,915.

At the 31st March 2021 the free reserves of the Charity, defined as unrestricted funds less fixed assets used with the Charity’s business, were £782,077 (2020: £984,596) which is in excess of the target policy. This level of funding is prudent given the non-linear nature of funding provides for operational finance for future years.

Given the increased uncertainty around membership income arising from the Covid-19 pandemic crisis, we propose to retain these funds as a contingency for at least the next few months.

6.9 Risk Management

The major risks facing the Charity are:

Going forward this aspect of our work will become increasingly important, with the organisation evolving to take greater strategic advantage of our unique membership.

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We expect this matter to negatively impact our operating results and financial position in 2021/22 and subsequent years

7. Plans for future periods

Through 2020/21 – the new Senior Leadership Team has been established to support the day-to-day running of NCUB with the Chief Executive. The Strategic Business Plan approved in March 2019 that covers the period from 2019 to 2022 continues to guide the work of the organisation and has been further refined throughout the year. A key priority is the further integration of the different functions across the Charity so that they work together more closely and in collaboration with external partners. A new 3 year strategic business plan is being developed for 2022.

8. Statement of Trustee responsibilities

The Trustees (who are also Directors of the Council for Industry and Higher Education for the purposes of company law) are responsible for preparing the Trustees’ annual report and financial statement in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021

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

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company’s auditor during the year and has expressed its willingness to continue in that capacity.

The report of the Trustees has been approved by the Trustees on 21 September 2021 and signed on their behalf by:

Name

………………………………………………………………

Title

………………………………………………………………

Date ………………………………………………………………

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION FOR THE YEAR ENDED 31 MARCH 2021

Opinion

We have audited the financial statements of The Council for Industry and Higher Education (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the trustees’ annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION FOR THE YEAR ENDED 31 MARCH 2021

gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

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

Auditor’s responsibilities for the audit of the financial statements

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

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION FOR THE YEAR ENDED 31 MARCH 2021

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

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

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

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

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION FOR THE YEAR ENDED 31 MARCH 2021

Use of our report

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

Noelia Serrano (Senior statutory auditor) 5 November 2021

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

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STATEMENT OF FINANCIAL ACTIVITIES (Incorporating the Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
Notes
£
Income from:
Donations and Legacies
2
372,000
Investments
3
73
Total income
372,073
Expenditure on:
Raising funds
144,140
Charitable activities
423,903
Total expenditure
4
568,043
Net (expenditure)/income
6
(195,970)
Net movement in funds
(195,970)
Total funds brought forward
993,571
Total funds carried forward
13
797,601		 Restricted
£
2,214,310
-
2,214,310
-
2,221,171
2,221,171
(6,861)
(6,861)
7,825
964		 Total
2021
£
2,586,310
73
2,586,383
144,140
2,645,074
2,789,214
(202,831)
(202,831)
1,001,396
798,565		 Total
2020
£
2,565,040
272
2,565,312
125,928
2,081,322
2,207,250
358,062
358,062
643,334
1,001,396

The accounts have been prepared on the basis that all operations are continuing.

The statement of financial activities contains all recognised gains and losses for the year.

Movements in funds can be found in note 13.

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BALANCE SHEET AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
9
Investments
10
Total fixed assets
Current assets
Debtors
11
Cash at bank and in hand
Total current assets
Liabilities
Creditors: Amounts falling due
within one year
12
Net current assets
Net assets
14
The funds of the charity:
Restricted income funds
13
Unrestricted funds
13
Total funds		 Total
2021
£
15,490
35
15,525
97,048
770,413
867,461
(84,421)
783,040
798,565
964
797,601
798,565		 Total
2020
£
8,940
35
8,975
276,360
890,357
1,166,717
(174,296)
992,421
1,001,396
7,825
993,571
1,001,396

Approved by the Trustees on 21 September 2021 and signed on their behalf by:

………………………………………….

Mr William Samuel Hugh Laidlaw Trustee

Company number: 03465914 (England and Wales)

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THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities:
Net cash (used in)/provided by operating activities
15
Cash flows from investing activities:
Purchase of fixed assets
Net cash (used in) investing activities
Change in cash & cash equivalents in the reporting period
Cash & cash equivalents at the beginning of the reporting period
Cash & cash equivalents at the end of the reporting period
The only cash and cash equivalents are amounts held as bank balances.		 2021
£
(109,317)
(10,627)
(10,627)
(119,944)
890,357
770,413		 2020
£
402,505
(9,129)
(9,129)
393,376
496,981
890,357

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THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. Accounting policies

1.1 Statutory information

The Council for Industry and Higher Education is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address and principal place of business is Dc. 115 The Clarence Centre, 6 St. Georges Circus, London, England, SE1 6FE.

1.2 Accounting convention

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The Charity constitutes a public benefit entity as defined by FRS102.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

1.3 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4 Income

Income from investments and donations have been accounted for when receivable. Contractual income is recorded when receivable.

Grants and donations are recognised once entitlement and value have been confirmed in writing.

Grants and donations that are subject to donor imposed conditions that specify the time period in which the expenditure of resources can take place are accounted for as deferred income and recognised as a liability until the relevant accounting period in which to expend the resource. Grants and donations without such pre-conditions are not deferred, even if the resources are received in advance of the expenditure on the activity funded by the grant or donation.

Membership income is recognised in full when receivable as it is not linked to the giving of future benefits.

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THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1.5 Expenditure and irrecoverable VAT

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Grants payable are payments made to third parties in furtherance of the charitable objectives of the Charity. Grants payable are accounted for when either the recipient has a reasonable expectation that they will receive the grant and the Trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and the condition attaching to the grant is outside the control of the Trustees.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

1.5.1 Cost of raising funds

The costs of raising funds are those costs attributable to generating income for the Charity and include salary and salary related items.

1.5.2 Charitable activities

Support costs are those functions that assist the work of the Charity but do not directly undertake charitable activities. Support costs include costs of administration, IT support, repairs and maintenance costs, etc which supports the Charity's activities. All support costs are deemed to relate to the charitable activities of the Charity.

1.5.3 Governance

This represents all costs involving public accountability of the Charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and constitutional requirements together with attributable support costs. They are included as a subset of support costs and allocated to other activities in the same manner.

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THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1.6 Tangible fixed assets

The cost of tangible fixed assets is their purchase cost together with any incidental costs of acquisition. The amount at which assets are capitalised has been set at £1,000 by the Charity. Depreciation is calculated to write down the cost less estimated residual value of all tangible fixed assets by equal annual instalments over their expected useful lives. The depreciation rates applied are:

2021 2020
Fixtures, fittings and equipment: - 25% 25%

Investments in jointly controlled entities are accounted for in accordance with the cost model and are recorded at cost less impairment.

1.8 Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial assets are recognised in the Charity’s statement of financial position when the Charity becomes party to the contractual provisions of the instrument.

Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.

1.8.1 Basic financial instruments

Basic financial instruments, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Other financial assets classified as fair value through the statement of financial activities are measured at fair value.

1.8.2 Other financial instruments

The Charity currently has no non-basic financial assets

1.9 Pension costs

Pension costs relate to employer’s contributions towards the personal pension fund of employees of the Charity. These contributions are charged to the income and expenditure account as they become payable.

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THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1.10 Funds

1.10.1 General funds

General funds are donations and other incoming resources receivable or generated for the objects of the Charity without specified purpose.

1.10.2 Restricted funds

Restricted funds are specifically donated to the Charity where the donor has specified they be used for the benefit of a specific project or for a particular administrative cost.

1.11 Operating leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight-line basis over the term of the relevant lease except where other more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

2.
a) Donations and legacies (current year)
Unrestricted
funds
£
Donations and legacies
372,000
Grants
-
372,000
2.
b) Donations and legacies (prior year)
Unrestricted
funds
£
Donations and legacies
614,000
Grants
10,000
624,000		 Restricted
funds
£
-
2,214,310
2,214,310
Restricted
funds
£
-
1,941,040
1,941,040		 2021
2020
Total
Total
£
£
372,000
614,000
2,214,310
1,951,040
2,586,310
2,565,040
2020
Total
£
614,000
1,951,040
2,565,040		 2020
Total
£
614,000
1,951,040
2,565,040

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THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3.
Investment income
Restricted
Unrestricted
2021
funds
funds
Total
£
£
£
Bank interest
-
73
73
4.
a) Expenditure (current year)
Direct Support costs
Total
Staff costs
costs
(note 5)
2021
£
£
£
£
Raising funds
Fundraising costs
98,443
-
45,697
144,140
Charitable activities
Research and
dissemination
526,420
1,654,248
188,498
2,369,166
Member services
224,500
-
51,408
275,908
849,363
1,654,248
285,603
2,789,214
4.
b) Expenditure (prior year)
Direct Support costs
Total
Staff costs
costs
(note 5)
2020
£
£
£
£
Raising funds
Fundraising costs
86,861
-
39,067
125,928
Charitable activities
Research and
dissemination
370,745
1,171,422
174,299
1,716,466
Member services
177,351
100,356
87,149
364,856
634,957
1,271,778
300,515
2,207,250		 2020
Total
£
272
Total
2020
£
125,928
1,716,466
364,856
2,207,250

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THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

5.
Support costs
Computer costs
General office costs
Travel
Employee costs
Rent, rates and utilities
Communications
Accountancy
Consultancy fees
Professional fees
Repairs and renewals
Bank charges
Depreciation
Subscriptions
Governance costs – Auditor’s remuneration
6.
Net income/(expenditure)
Net income/(expenditure) is stated after charging:
Auditor’s remuneration – current year
Depreciation – owned assets
7.
Staff costs
Wages and Salaries
Social security costs
Pension costs
Other staff costs		 2021
£
32,160
29,750
1,659
6,735
122,046
6,100
35,639
4,605
9,527
15,000
940
4,077
8,705
8,660
306 23333
285,603
2021
£
7,550
4,077
2021
£
735,566
78,292
33,189
2,316
849,363		 2020
£
43,377
20,945
12,406
4,448
137,139
6,506
36,658
4,222
12,969
117
751
1,832
10,445
8,700
300,515
2020
£
7,400
1,832
2020
£
564,644
48,335
20,365
1,613
634,957

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THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Staff Costs (continued)

The average monthly number of employees during the year was as follows:

2021 2020
Average head count 15 9

The number of employees whose emoluments exceeded £60,000, excluding employer national insurance and employer pension contributions within the following bands was:

£60,000 - £70,000
£80,000 - £90,000
£120,000 - £130,000		 2021
1
1
1
3
~~1~~		 2020
-
-
1
1
~~3~~

The Trustees consider the key management personnel to be all the Trustees, CEO, Head of Operations and Head of Policy and Engagement. Total remuneration including employer pension contributions and employer national insurance of these people for the year ended 31 March 2021 was £368,128 (2020: £212,350).

8. Transactions with Trustees

In the year to 31 March 2021, no Trustees received remuneration (2021: nil) and there were no expenses reimbursed (2020: £1,109 to 2 Trustees).

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THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. Tangible fixed assets
Fixtures, fittings
and equipment
£
Cost
As at 1 April 2020 27,665
Additions 10,627
As at 31 March 2021 38,292
Depreciation
As at 1 April 2020 18,725
Charge for the year 4,077
As at 31 March 2021 22,802
Net book value
As at 31 March 2021 15,940
As at 31 March 2020 8,940

All of the assets above are used for charitable purposes.

10.
Investments
Cost
As at 1 April 2020
Disposal
As at 31 March 2021
Net book value
As at 31 March 2021
As at 31 March 2020		 £
35
-
-
35
35

In July 2017, The Charity subscribed for a 36.80% holding in a new venture company called Placer Ltd (Company No. 10803538). The Charity holds 3,500 ordinary shares of £0.01 each in Placer Ltd.

Placer Ltd’s principal activity is to develop applications for the collaboration between universities and businesses. In 2021-22 the business of Placer Ltd is being wound down.

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THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

11.
Debtors
Donations receivable
Prepayments and accrued income
12.
Creditors
Trade creditors
Social security and other taxes
Accruals and deferred income		 2021
£
75,000
22,048
97,048
2021
£
24,044
31,072
29,305
84,421		 2020
£
195,000
81,360
276,360
2020
£
140,226
19,070
15,000
174,296

13. a) Statement of funds (current year)

As at
1 April 2020
£
Unrestricted funds
General fund
993,571
Restricted funds
Innovation Brokerage
5,473
Research England
3,608
Business Motivation Survey
-
KE Concordat
(1,256)
7,825
Total funds
1,001,396		 Income
Expenditure
£
£
372,073
(568,043)
995,220
(1,000,515)
993,840
(997,144)
120,000
(120,000)
105,250
(103,512)
2,214,310
(2,221,171)
2,586,383
(2,789,214)		 At 31 March
Transfers
2021
£
£
-
797,601
-
178
-
304
-
-
-
482
-
964
-
798,565		 At 31 March
Transfers
2021
£
£
-
797,601
-
178
-
304
-
-
-
482
-
964
-
798,565
964
798,565

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THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Restricted funds have been set up for the following purposes.

Innovation brokerage: an intelligent brokerage tool that has been created to improve the ease with which university-business collaboration can be enabled and maintained.

Research England : supports the work of the NCUB to promote, showcase and support universitybusiness collaboration.

Business Motivations Survey – NCUB has been funded by Research England to build a new baseline dataset on the drivers and motivations for universities to work with universities. NCUB is working with a research team at the University to gather the data.

KE Concordat – NCUB has been funded by Research England to support the university sector to implement a new concordat for Knowledge Exchange. NCUB has developed a new website portal to raise awareness, share good practice and collate concordat statements.

13. b) Statement of funds (prior year)

1
Unrestricted funds
General fund
Restricted funds
Innovation Brokerage
Research England
Business Motivation Survey
KE Concordat
Total funds		 As at
April 2019
£
643,334
-
-
-
-
-
643,334		 Income
Expenditure
£
£
624,272
(274,035)
992,820
(987,347)
847,470
(843,862)
80,000
(80,000)
20,750
(22,006)
1,941,040
(1,933,215)
2,597,812
(2,207,250)		 At 31 March
Transfers
2020
£
£
-
993,571
-
5,473
-
3,608
-
-
-
(1,256)
-
7,825
-
1,001,396		 At 31 March
Transfers
2020
£
£
-
993,571
-
5,473
-
3,608
-
-
-
(1,256)
-
7,825
-
1,001,396
7,825
1,001,396

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THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. a) Analysis of net assets between funds (current year)

Fixed assets
Current assets
Creditors due within one year		 Restricted
funds
£
-
964
-
964		 Unrestricted
funds
£
15,525
866,497
(84,421)
797,601		 Total
2021
£
15,525
867,461
(84,421)
798,565		 Total
2020
£
8,975
1,166,717
(174,296)
1,001,396

14. b) Analysis of net assets between funds (prior year)

Restricted
funds
£
Tangible assets
-
Current assets
7,825
Creditors due within one year
-
7,825		 Unrestricted
funds
£
8,975
1,158,892
(174,296)
993,571		 Total
2020
£
8,975
1,166,717
(174,296)
1,001,396		 Total
2019
£
1,678
722,179
(80,523)
643,334

15. Reconciliation of net income/expenditure to net cash flows from operating activities

Net movement in funds
Add back depreciation charge
Decrease/(Increase) in debtors
(Decrease)/Increase in creditors
Net cash (used in)/provided by operating activities		 Total
2021
£
(202,831)
4,077
179,312
(89,875)
(109,317)		 Total
2020
£
358,062
1,832
(51,162)
93,773
402,505

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THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Related party transactions

During the year there were no related party transactions.(2020 – nil)

17. Company status

The company is limited by guarantee, not having a share capital. In the event of winding up the company's members have agreed to contribute an amount of £1.

At 31 March 2021 the total of such guarantees was £8 (2020: £9).

18. Contingent lease obligations

The following operating leases are committed to be paid within the 5-year life of the lease.

Land and buildings
Expiring within one year
Expiring between one and five years		 2021
£
-
-
-		 2020
£
96,500
-
96,500

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THE COUNCIL FOR INDUSTRY AND HIGHER EDUCATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

19. Comparative information

Statement of Financial Activities (Incorporating the Income and Expenditure Account)

Unrestricted
funds
Notes
£
Income and endowments from:
Donations and legacies
2
624,000
Investments
3
272
Total income
624,272
Expenditure on:
Raising funds
125,928
Charitable activities
148,107
Total resources expended
4
274,035
Net movement in funds
350,237
Total funds brought forward
643,334
Total funds carried forward
13
993,571		 Restricted
Total funds
funds
2020
£
£
1,941,040
2,565,040
-
272
1,941,040
2,565,312
-
125,928
1,933,215
2,081,322
1,933,215
2,207,250
7,825
358,062
-
643,334
7,825
1,001,396		 Restricted
Total funds
funds
2020
£
£
1,941,040
2,565,040
-
272
1,941,040
2,565,312
-
125,928
1,933,215
2,081,322
1,933,215
2,207,250
7,825
358,062
-
643,334
7,825
1,001,396
2,565,312
125,928
2,081,322
2,207,250
358,062
643,334
1,001,396

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