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2021-07-31-accounts

LONDON HIGHER (A company Limited by Guarantee)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

Charity Number: 1114873 Company Number: 5731255

LONDON HIGHER

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2021

CONTENTS Page
Reference and administrative details 2 - 3
Trustees’ Report 4 - 14
Independent auditors’ report 15 - 17
Statement of financial activities 18
Balance sheet 19
Statement of Cash flows 20
Notes to the financial statements 21 - 33

Page 1 of 33

LONDON HIGHER REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 31 JULY 2021

Auditors Haysmacintyre LLP
10 Queen Street Place
London
EC4R 1AG
Bankers Royal Bank of Scotland Group (Education Sector)
Commercial Banking
3rdFloor, Cavell House
21 Charing Cross Road
London
WC2H ONN
Registered office London Higher
Tavistock House
Tavistock Square
London
WC1H 9JJ
Company Registration Number 5731255
Charity Registration Number 1114873
Company Secretary Emmanuela Forte
LONDON HIGHER SENIOR MANAGEMENT TEAM
Diana Beech Chief Executive Officer
Graeme Atherton Head of AccessHE and NEON (until March 2021)
Richard Boffey Deputy Head of AccessHE / Head of AccessHE
Chloe Bukata Head of Communications and External Affairs
Emmanuela Forte Head of Finance
Alec Webb Head of Policy and Member Engagement (until June 2021)
Jenny Wetherill Head of Operations

LONDON HIGHER SENIOR MANAGEMENT TEAM

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LONDON HIGHER REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 31 JULY 2021

BOARD OF TRUSTEES

Middlesex University

University of Westminster

University of East London

Goldsmiths, University of London

London Metropolitan University

Birkbeck, University of London

Royal Holloway, University of London

CO-OPTED TRUSTEES

Trinity Laban Conservatoire of Music and Dance

City, University of London

St George’s, University of London (from May 2021)

University of West London

University of London

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LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021

The Trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 July 2021.

STRUCTURE, GOVERNANCE AND MANAGEMENT

1. Corporate Status . London Higher is a company limited by guarantee with charitable status. It began as an unincorporated member association in 1999. It was incorporated on 6 March 2006 and registered as a charity in England and Wales on 26 June 2006. The charitable activities of the company were transferred from the University of London on 1 April 2009.

2. Governing Document . The company was established under Memorandum and Articles of Association dated 6 March 2006 which establish the objects and powers of the charitable company. In addition it operates under a Members’ Agreement with each member that sets out the nature of the relationship between the company and each member.

3. Trustees . Trustees are elected by the members, save a number that are co-opted with regard to specific interests. At date of accounts London Higher has four co-opted Trustees. In addition London Higher Trustees invite observers from a limited number of key stakeholder organisations. London Higher has no observers at this time.

4. Trustee Induction & Training . Member Trustees are familiar with the practical elements of the company as higher education institutions (HEIs) have charitable status as providers of education. Each new Trustee is directed to guidance by the Charities Commission and all relevant Governance documents relating to the company. New Trustees are given a briefing on London Higher. Trustees attend an annual Strategy Meeting that includes governance questions.

5. Sub committees. London Higher has a Finance Committee and a Remuneration Committee. The Finance Committee reviews the financial activity of the organisation by: monitoring London Highers’ performance against budget; advising, supporting and by being a resource for the Head of Finance in overseeing the company’s finances; ensuring that the financial elements of the organisation are in accordance with its vision, mission, and strategic plan; advising the board on the financial condition of the organisation; and reviewing the company’s Financial Regulations. The function of the Remuneration Committee are to: determine and agree with the London Higher Board the broad policy for the remuneration of London Higher staff; have delegated authority to set individual remuneration arrangements for the most senior London Higher staff including the CEO; and recommend, monitor and note the level and structure of remuneration for London Higher staff.

6. Structure of the Executive . The Executive is divided into four business divisions. These are listed below together with their primary functions. Each division is: a) a separate cost centre; b) overseen by an Advisory Group of members; and c) has its own Head of Division/ member of Senior Management Team (SMT) with strategic oversight who reports directly to the Chief Executive. In addition the Chief Executive and Heads of Division meet as a SMT every quarter.

7. Business Divisions of London Higher :

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LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021

8. Decision Making Protocols . The overall strategic direction of London Higher is set out in a Business Plan that is drawn up by the Executive, approved by the Board of Trustees and agreed by the company members. Each year an Operational Plan is drawn up with the same approvals. The annual Operational Plan sets out the specific initiatives for the year together with expected costs. Heads of Division are responsible for delivering these initiatives on a day to day basis. The SMT monitors progress and each quarter Trustees are given a written Progress Report. In addition any expenditure or income over £50,000, whether agreed in the Operational Plan or not, must be approved by the Board, and London Higher will seek support from the Finance Committee for any expenditure or income over £10,000.

9. Higher Education Institutions (HEIs). Publicly funded HEIs in London are our company members. In the Members’ Agreement they devolve to the London Higher Board of Trustees the power to make decisions on their behalf in the collective interests of the group, or parts thereof. This authority is safeguarded by Advisory Groups for each of our operational divisions which comprise senior representatives from the membership group.

10. Higher Education Partners . In response to Government policies aimed at reducing the distinction between publicly funded and other forms of higher education, in 2011 London Higher began to work with other, quality assured providers of higher education in London. We now recognise two additional partnership categories (as distinct from members): publicly funded higher education providers based outside London who have opened centres in London; and independent providers (including private providers and not-for-profit providers).

11. Related Parties . The policy landscape for higher education is currently set by the Department for Education and the Department of Business, Energy & Industrial Strategy (with some input from the Department for Health when relevant), and is now being implemented by the Office for Students (OfS), the independent regulator of HE in England, having previously been overseen by the Higher Education Funding Council for England (HEFCE). London Higher seeks to influence policy at the local and Government level and to develop and run HE collaborations that reflect national policy and that which are tailored to the London region and the unique nature of the London group of HEIs. London Higher has engaged with with OfS on our CUREate project targeted at recruiting arts students into healthcare programmes.

12. Additionally, the Mayor of London, the Greater London Authority (GLA) and the London Economic Action Partnership (LEAP) have interests in higher education as it pertains to the capital. London Higher maintains links with each. Additionally, the Mayor of London, the Greater London Authority (GLA) and the London Economic Action Partnership (LEAP) have interests in higher education as it pertains to the capital. London Higher maintains links with each. Following the pandemic, and the move towards local and national recovery, we have worked closely with the Mayor of London’s London Recovery Board, with the CEO appointed to represent Higher Education across the Capital in The President of UUK’s absence.

13. Risk Management . London Higher maintains a Risk Register which ranks the key risks to which the organisation is exposed, their likely impact and our proposed responses to them. The Risk Register is a standing item on all Board Agendas and at each meeting one risk is examined in detail by the Board. The Risk register is also a standing item at all SMT meetings. The Trustees are satisfied that systems have been developed and are in place to mitigate identified risks to an acceptable level.

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LONDON HIGHER TRUSTEES REPORT

FOR THE YEAR ENDED 31 JULY 2021

The principal risks and uncertainties identified by the charity are as follows: It is important to note that the risks and mitigating actions for events that arise from the coronavirus pandemic are covered by risk 1-3, and the London Higher team continue to assess these in light of changing circumstances.

Risk Theme Impact Mitigation
1 Members leave
or do not make
contributions/
pay reduced
rate.		 Financial and
reputational.		 Reduced services
to members and
/or reduced staff
level
- Reporting a loss
at year end
- No longer able to
represent the
‘London cluster'.		 CEO/Chair/ LH Team have regular 1:1 meetings with all
members to inform them of benefits, update them on activity
and to receive feedback.
- Hold regular network and all-member engagement meetings.
- All members offered the opportunity to feedback and
approve the LH Business Strategy and Operational Plan.
- 12-month notification clause in Mem & Arts.
- Use peer group / mutual contacts to persuade otherwise.
- Produce a conservative budget to reflect decrease in
membership income.
- Negotiate partial access to LH services to mitigate
representational losses.
2 Reliance or
dependence on
grant funding.		 Financial. Loss of
contribution
towards overheads
- Staff are made
redundant.		 - Careful contract management:
- Regular financial reporting by Head of Finance.
- Maintain good working relationship with funders.
- Foster culture of early disclosure concerning problems.
- Manage supplier contracts to achieve flexibility.
- Keep a close eye on unrestricted reserves.
- Prepare a conservative budget.
3 London Higher IT
systems are
compromised or
become
inaccessible.		 Reputational -Damage to the
reputation of the
organisation to be
trusted with data
- Loss of
organisational
knowledge &
membership
contacts/
information		 - We use Office 365 (cloud), which can be accessed anywhere
and has multiple back-up sites. We test our backup and
retrieval systems periodically.
- SAGE finance software is backed up to the cloud.
- We implement and maintain anti-virus software on all
computers as advised by our IT consultants.
- We have an IT and data protection policies which staff are
reminded of periodically.
- All staff complete GDPR training annually
4 LH division
becomes
untenable
financially		 Financial and
reputational.		 - The overheads
would be shared
out amongst fewer
divisions
- Loss of prestige		 - Regular financial reporting by Head of Finance and monthly
management accounts reports.
- Regular project updates by head of relevant department &
Executive.
- More collaborative cross divisional working established and
encouraged.
- Provide excellent quality internal services to hosted divisions
at fair cost.
5 London Higher is
perceived as not
being politically
impartial.		 Reputational. - Members/
stakeholders lose
trust in the
organisation		 - CEO to seek approval from the LH Board on contentious
issues.
- Executive leadership to monitor minor actions to ensure they
are broadly non-partisan.
- Foster relationships with key stakeholders across the political
spectrum in London and UK Government, and with those in
non-political roles.
6 An employee
takes London
Higher to an
employment
tribunal		 Financial. - Damages /
reparations could
impact on financial
stability		 - Member of the executive with CIPD level 5 employment law
qualifications.
- Reactive and robust HR procedures which are guided and
implemented with support from a paid-for HR specialist
service.
- Foster culture of early disclosure concerning problems
amongst staff.

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LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021

14. Remuneration . Pay of all staff is reviewed annually and is normally increased to reflect cost of living (COL) adjustment. The education sector average COL and financial situation of the organisation are considered when making this decision. This changes historically had to be authorised by the Remuneration Committee and reported to the Board of Trustees. Since 19-20 COL increases are proposed in the budget which the Board approves, therefore the increase are considered managerial decisions and are not reported to the Remuneration Committee. The Remuneration Committee sets the remuneration package for the CEO and, in doing so, takes account of sector benchmarks and the CEO’s annual performance review undertaken by the Chair of the Board. From time to time we ask our HR consultants to perform a pay review to ensure that there are no biases in our pay in regard to age, gender and ethnicity and that the job families are remunerated in reference to the broader market for these roles.

OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

15. Following the appointment of Dr Diana Beech as CEO in October 2020, London Higher undertook a review of the organisation, speaking to all members and reorienting our approach to representation. We produced a strategic plan, approved by the board, in line with our operational plan which was approved by the members, and we are working to throughout this year. The document defines our mission, aim and priorities.

16. Our mission is to help enable our members, their staff and students to thrive. We help our members to address opportunities and challenges that arise from our shared location in London. We assist and support our members to achieve their goals whilst being a collective voice, garnered though our networks and taking this message to our key stakeholders. We influence and work with stakeholders and networks as a trusted, non-partisan and professional partner.

17. Our Vision: We support our members by advocating for and on behalf of London HE. It is our aim to become a well-respected “go to” representative body for higher education in London to ensure the success of all our members. We therefore act in ways that reflect our six core purposes as:

Every year we will provide an annual review which reflects on the goals outlined in the Business Strategy and an Operational plan detailing how we aim to achieve them that year. These documents are voted on at our AGM and uploaded to our website.

18. Our Priorities include the following:

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LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021

across Whitehall and beyond. Developing strong working relationships with relevant local and national officials. And convening our members on major issues such as the ‘levelling up’ agenda and the student experience, whilst responding to emerging policy changes, from Covid-19 to Brexit.

19. Measuring our success. We will measure our impact by consulting with members through a newly developed member survey, as well as in discussion with our stakeholders. Additionally, following the appointment of Dr Diana Beech, we have become better connected to our members’ senior teams and policy executives, through regular meetings and through our reformed network offering. We understand the importance of demonstrating value to our members and determining our success. We have introduced a RAG rating system for our strategic priorities that will be discussed at Board meetings, Details on how we aim to deliver and manage our success can be found in our business strategy.

20. Public Benefit . Our work is informed by the need to act for the benefit of the public. In doing this we reference the Charities Commission guidance on public benefit. We engage with over forty HEIs. In London universities employ 223,000 people, with nearly 380,000 students attending higher education providers in the city. We benefit them in various ways as will be shown below, but in all cases our test is whether an action of ours will result in universities providing a richer experience for their staff and/or students in London . A ‘secondary public’ comprises a wider group of stakeholders with whom HE students and staff interact throughout their lives, from employers, parents and children, to policy makers and sectoral stakeholders in both higher education and place, all of whom gain benefit from an effective and full higher education experience.

21. Fundraising. London Higher has not carried out any fundraising from the general public during the year. There has been no outsourced fundraising via professional fundraisers or other third parties and as a result the organisation is not registered with the fundraising regulator and received no fundraising complaints in the year.

ACHIEVEMENTS AND PERFORMANCE

22. For more than twenty years London Higher has been working with universities and higher education colleges in London. Our mission is to support universities in meeting the challenges and opportunities of providing diverse higher education in London. We do this by: 1) identifying what the challenges and opportunities are through our wide network offering; 2) assessing the impact, extent or volume of such challenges or opportunities on our members and the wider public, through our surveys and analysis of HE data; 3) designing, appropriate measures to address the challenges or opportunities though our projects, collaborations, advocacy work; and 4) sharing this (and other) information with our members and the wider policy environment to promote our work though our events. This cycle of engagementaction-promotion is how we ensure that our outputs met our goals, and our goals are appropriate and have impact. During our existence we have earned a deserved reputation for advocating and promoting

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LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021

London’s HEIs and supporting our members in their responses to the challenges and opportunities that have emerged.

23. Outputs. Our outputs are diverse including a wide range of networks, advisory groups and publications, as well as campaigns and data analysis, promotional material, meetings and workshops, lobbying and receptions. In this section we give summaries of some of the main activities each of our divisions has undertaken during the past year.

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LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021

those on the frontline, the challenges that they faced, the sacrifices that they made, and the immense impact that their efforts had. 

  - Completion of the Office for Students Strategic Interventions in Health Education Disciplines (SIHED) Challenge Fund, in line with the revised project plan compiled following the onset of the coronavirus pandemic. Our project, CUREate, has elevated awareness of postgraduate entry routes into health, tailored to the needs and interests of London’s sizable creative student community. This was completed in March 2021.

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LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021

In December 2020, following the departure of one member of staff the decision was made that London Higher would help facilitate the temporary transfer across UWL as it establishes itself as an independent organisation. It was agreed with UWL that Neon last day at London Higher would be the 28th of May. Assets and Liabilities accrued from 1st of June onwards were wholly transferred to UWL promptly on the 18 June 2021. At year end 31 July 2021 Neon presented a profit of just over £4,000 in London Higher books.

Profits made by the division in the past (total of £73,247 as 31 July 2021) are classified as Unrestricted funds (part of free reserves) and are shown on the Statements of Funds as a transfer from the NEON division to London Higher for the purpose of presenting the disposal.

More details of these activities are presented in our Annual Report to members which can be downloaded from our website: https://www.londonhigher.ac.uk/wp-content/uploads/2021/07/Annual-review-202021.pdf

FINANCIAL REVIEW

24. Our financial goal is to maintain and expand member services by offering an effective and transparent financial regime. In 20-21 the company concentrated on the need to reassure prospective international students, and the need to respond to the threat to remove the London Weighting element of the teaching grant. The Board members agreed to fund these out of reserves.

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LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021

LHEurope down 100% as the division was discontinued last year, NEON down by 45% as the division ceased trading under LH in June 2021). 2) Projects and Event Income decreased by £145,281 or 52% mainly due to Neon departure but also because AHE was unable to raise any project income (as it did in the past) due to the restrictions in place due to the COVID 19 pandemic imposed in 20-21. Grant Income was also reduced from last year although only by £25,000 the equivalent of 4%. LH Centre Groups, LMHC and AHE all had an increase in membership income however, the combined increase was not sufficient to offset the income decrease generated by the above.

Total expenditure decreased (£1,339,540) by £225,926, 14%, compared to 2019-20 (£1,565,466). Direct Costs decreased by £183,595 or 15%, (LH Core down by 19%, LH Europe down by 100% as the division was discontinued last year, NEON down by 36% as the division ceased trading under LH in June 2021, Curate also seen almost no spending as the project concluded the previous year) and Support Costs decreased by £42,332 or 24%. HR Costs contributed to most of the savings, although comparison with previous year is a little imbalanced as last year was really a one-off year for HR costs as we had the departure and recruitment for the CEO post.

25. Reserves Policy . Total funds as 31 July 2021 are £739,558 (2020: £804,173). Of the total funds, £48,404 (2020: £125,131) were represented by restricted funds and £691,154 (2020: £679,042) by unrestricted funds. Free Reserves (i.e. unrestricted funds excluding fixed assets and amounts designated) stood at £670,402 (2020: £657,164) at 31 July 2021.

The London Higher reserves policy is to hold unrestricted funds to cover between three to six months expenditure, to cover staff costs, overheads and a scaled down level of administration and project expenditure. This applies to all divisions. The current level of unrestricted reserves of £691,154 meet the criteria.

Within designated funds, £17,500 are designated for IT capital expenditure. This is to replace current IT hardware when it becomes necessary to do so. The IT fund would be used to replace ageing IT. Back in 2017 we extended the life of our current PC’s by installing Solid State Drives but by 2021 many of them will be in excess of seven years old and will need replacement. London Higher has started the replacement process in October 2021.The £17,500 would include software and installation for all purchases. £2,326 within the designated fund represents the net book value of assets. Also, within Designated Funds we have the EAIE funds of £926 which relates to a project which started in Sept 2019. Because of the pandemic, London Higher was unable to continue the programme for another year. The

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LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021

carried forward amount will be used towards the direct delivery costs of some similar activity or returned to the participating members.

PLANS FOR 2021-22

26. Financial Plan. For the 2020-21 financial year we are forecasting income of just around £959,000. In June 2021 we circulated a costed Operational Plan for 2021-22 to all members which indicates how this money will be disbursed. In January/February 2022 we revise the Plan to reflect the post-audit position.

27. Strategies for the year. Our initiatives this year include:

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

28. The Trustees (who are also Directors of London Higher for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)

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

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LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2021

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

31. In so far as the Trustees are aware:

APPROVAL

Declaration. Trustees have prepared this report in accordance with the Special Provisions of Part 15 of the Companies Act 2006. In preparing this report, the Trustees have taken advantage of the small companies exemptions provided by Section 415A, the Companies Act 2006.

32. Resolution . Approved by the London Higher Board of Trustees on 18 January 2022 and signed on its behalf by:

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Professor Amanda Broderick Chair, London Higher

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LONDON HIGHER

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF LONDON HIGHER

FOR THE YEAR ENDED 31 JULY 2021

Independent auditor’s report to the members of London Higher

Opinion

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

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ 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.

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

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LONDON HIGHER

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF LONDON HIGHER FOR THE YEAR ENDED 31 JULY 2021

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 (which incorporates the strategic report and the directors’ report).

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement on page 14 , 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.

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

Based on our understanding of the and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to Charity Law, GDPR and employment law and we considered the extent to which non-compliance might have a material effect on the financial statements. We

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LONDON HIGHER

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF LONDON HIGHER

FOR THE YEAR ENDED 31 JULY 2021

also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006, Charities Act 2011 and the Charities SORP.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to the NEON transfer, manual journal postings, recognition of membership income and grant income. Audit procedures performed by the engagement team included:

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

Use of our report

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

……………………………………………………….

Kathryn Burton (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory Auditors London EC4R 1AG

Date: ………………………………………… 20 January 2022

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LONDON HIGHER

STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating and Income and Expenditure Account)

FOR THE YEAR ENDED 31 JULY 2021

Company number 5731255

Unrestricted Restricted Total Total
Funds Funds 2021 2020
Notes £ £ £ £
Income from:
Charitable activities
Membership income 3 637,275 - 637,275 712,529
Grants 3 - 559,108 559,108 584,108
Other 3 134,586 - 134,586 279,867
Investment income 3 2,059 - 2,059 3,347
------------------- ------------------- ------------------- -------------------
Total income 773,920 559,108 1,333,028 1,579,851
------------------- ------------------- ------------------- -------------------
Expenditure on:
Charitable activities 4 761,808 577,732 1,339,540 1,565,466
------------------- ------------------- ------------------- -------------------
Total expenditure 761,808 577,732 1,339,540 1,565,466
------------------- ------------------- ------------------- -------------------
Net income/(expenditure) 2 12,112 (18,624) (6,512) 14,385
Brought forward refunded - (58,103) (58,103) -
------------------- ------------------- ------------------- -------------------
Net movement in funds 12,112 (76,727) (64,615) 14,385
------------------- ------------------- ------------------- -------------------
Reconciliation of funds
Total funds brought forward 679,042 125,131 804,173 789,788
------------------- ------------------- ------------------- -------------------
Total Funds carried forward 691,154 48,404 739,558 804,173
======== ======== ======== ========

All amounts derive from continuing activities except for the Neon project. The income and expenditure relating to this project in the year were £150,874 and £146,393 respectively. (Net Income of £4,479). Further details of the Neon transfer can be found of page 10 and 12. There are no other gains or losses other than those shown above. The comparative Statement of Financial Activities is on note 16.

The notes on pages 21 to 33 form part of the accounts.

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LONDON HIGHER BALANCE SHEET AT 31 JULY 2021

Company number 5731255

2021 2020
Note £ £
FIXED ASSETS 7 2,326 3,452
--------------- ---------------
CURRENT ASSETS
Debtors 8 64,870 56,973
Cash at bank and in hand 788,626 1,014,385
--------------- ---------------
853,496 1,071,358
CREDITORS: amounts falling due
within one year 9 (116,264) (270,637)
--------------- ---------------
NET CURRENT ASSETS 737,232 800,721
--------------- ---------------
NET ASSETS 739,558 804,173
======== ========
FUNDS
Unrestricted funds
General funds 11 672,222 657,164
Designated funds 11 18,932 21,878
Restricted funds 11 48,404 125,131
---------------- ----------------
739,558 804,173
======== ========

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved and authorised for issue by the Board of Trustees on 18 January 2022 and were signed on their behalf by:

……………………………………………… Professor Amanda Broderick Chair, London Higher

Page 19 of 33

LONDON HIGHER STATEMENT OF CASH FLOWS

Company number 5731255

FOR THE YEAR ENDED 31 JULY 2021

2021 2020
Cash flows from operating activities: £ £
Net income for the reporting period
(as per the statement of financial activities) (64,615) 14,385
Adjustments for:
Depreciation charges 1,126 1,295
Interest received (2,059) (3,347)
Decrease/(increase) in debtors (23,798) 95,684
Increase/(decrease) in creditors (138,472) 129,695
-------------- --------------
Net cash provided by/(used in) operating activities (227,818) 237,712
======= =======
Cash flows from investing activities
Investment income 2,059 3,347
-------------- --------------
Net cash provided by investing activities 2,059 3,347
-------------- --------------
Cash flows from capital expenditure and financial investment
Payments to acquire tangible fixed assets - (2,058)
-------------- --------------
Net cash used in financing activities - (2,058)
-------------- --------------
Change in cash and cash equivalents in the reporting period (225,759) 239,001
Cash and cash equivalents at the beginning of the reporting 1,014,385 775,384
period
-------------- --------------
Cash and cash equivalents at the end of the reporting period 788,626 1,014,385
======= =======
Reconciliation of net debt 2020 2021
At the start Cashflow At the end
of the year of the year
£ £ £
Cash in hand 1,014,385 (225,759)
788,626
-------------- --------------
Total cash and cash equivalents 1,014,385 (225,759) 788,626
======= ======= =======

The notes on pages 21 to 33 form part of the accounts.

Page 20 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

Company number 5731255

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of preparation

The financial statements have been prepared under the historic cost convention and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102), the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - effective 1 January 2019.

The organisation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Legal status

The Charity is a company limited by guarantee, incorporated in England and Wales (company number: 5731255) and a charity registered in England and Wales (charity number: 1105500). The charity meets the definition of a public benefit entity under FRS 102.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

The functional currency of the charitable company is considered to be GBP because that is the currency of the primary economic environment in which it operates.

Preparation of accounts on a going concern basis

We continued to be effected by the pandemic during 20-21 but the London Higher scope of work remained focused and in line with the members’ objectives, as well as the sector as a whole. All the members are engaging together to address the future of London’s students. This robust collaboration and the positive feedback have given London Higher more confidence about the future. After so many years in the collaboration with Kingston Uni, London Higher plans to re applied for restricted funding from OfS. A decision on whether we have been successful will be made in March 2021. Having taken all these elements into consideration and carry out a cash flow forecast for the next 18 months which highlights different scenarios, the Trustees consider there are no material uncertainties about the Charity’s ability to continue as a going concern. The ability to manage the company assets, the reserves levels and future plans gives Trustees confidence the charity remains a going concern for the foreseeable future.

Critical accounting judgements and key sources of estimation uncertainty

In the application of these accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources.

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management’s best knowledge of the amount, events or actions, actual results may ultimately differ from those estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that

Page 21 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

Company number 5731255

1. ACCOUNTING POLICIES (continued)

period, or in the period of the revision and future periods if the revision affects current and future periods. The Trustees consider the following items to be areas subject to estimation and judgement: Pensions:

FRS 102 makes the distinction between a Group Plan and a multi-employer scheme. A Group Plan consists of a collection of entities under common control typically with a sponsoring employer. A multiemployer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as that provided by USS. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit, results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense is recognised in profit or loss. The Trustees are satisfied that the scheme provided by USS meets the definition of a multiemployer scheme.

The USS pension scheme is in a deficit position and a proportion of the contributions London Higher is paying to the scheme is relation to funding the deficit. FRS 102 requires that you must recognise a liability for the fair value of any contributions payable that arise from an agreed deficit repayment plan between employer and a pension scheme. Whilst the scheme documentation does provide a stated % figure of the ongoing contributions which can be attributed to deficit repayment, the payment amount is based on future salaries rather than a specified fixed repayment plan. On this basis, the deficit contributions are not reliably measurable and as such no liability has been recognised.

Income

All income is recognised once the charity has entitlement to income, it is probable that income will be received and the amount of income receivable can be measured reliably.

Grants are recognised in full in the statement of financial activities in the year in which the charity has entitlement to the income, the amount of income receivable can be measured reliably and there is probability of receipt.

Investment income relates to interest on from bank balances and is accounted for on an accruals basis.

Deferred income represents amounts receivable for future years where conditions are attached which must be fulfilled before unconditional entitlement, or grants which can only be spent in future years. The deferred income is released when entitlement to the income is confirmed.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

London Higher London Medicine & Healthcare Access HE NEON NCOP

Membership and charitable activity costs include expenditure which is directly attributable to more than one activity, are apportioned across cost categories on the basis of an estimate of the proportion of time spent by staff on those activities.

Page 22 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

Company number 5731255

1. ACCOUNTING POLICIES (continued)

Support costs are those functions that assist the work of the charity but do not undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity’s activities.

Governance costs are costs incurred in connection with the strategic management of the charity and in compliance with constitutional and statutory requirements. These costs have been allocated to charitable activities. The basis on which support costs have been allocated across the categories on the basis of the proportion of time spent by staff on those activities.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on all tangible fixed assets on a straight line basis to write off the cost, less estimated residual value, over their expected useful lives as follows:

IT equipment 3 years Fixtures and fittings 3 years Furniture 3 years The charity’s capitalisation policy is for any items over £500.

Operating leases

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.

Pension scheme

The Charity participates in the Universities Superannuation Scheme (the scheme). Throughout the current and preceding periods, the scheme was a defined benefit only pension scheme until 31 March 2016 which was contracted out of the State Second Pension (S2P). The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the scheme’s assets are not hypothecated to individual institutions and a scheme-wide contribution rate is set. The institution is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as required by Section 28 of FRS 102 “Employee benefits”, accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period.

Employee benefits

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

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

Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, trade and fee debtors, staff loans, other debtors, prepayments and accrued income. A specific provision is made for debts for which recoverability is in doubt. Cash and cash equivalents are defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost, fees in advance, trade creditors and other creditors and amounts owed to group undertakings.

Page 23 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

Company number 5731255

1. ACCOUNTING POLICIES (continued)

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and cash in hand includes cash held on site and within bank accounts.

Creditors and provisions

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

Funds

Funds held by the charity are either:

Page 24 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

Company number 5731255

2. NET INCOME 2021 2020
£ £
This is stated after charging:
Auditors remuneration (excluding VAT)
- current year 10,000 10,000
Depreciation 1,126 1,295
Operating lease rentals 53,363 52,500
========= =========
3. INCOME
2021 2020
£ £
Membership Contributions
London Higher Members 363,300 424,200
London Higher Europe - 16,333
London Medicine 72,330 61,331
London Partners 40,493 27,500
Access HE 125,542 118,959
NEON 35,610 64,206
---------------- ----------------
637,275 712,529
Grants
Ofs 559,108 584,108
---------------- ----------------
559,108 584,108
Other
Project & event income 134,586 279,867
---------------- ----------------
134,586 279,867
---------------- ----------------
Total charitable income 1,330,969 1,576,504
---------------- ----------------
Investment Income 2,059 3,347
---------------- ----------------
2,059 3,347
---------------- ----------------
Total income 1,333,028 1,579,851
======== ========

Page 25 of 33

LONDON HIGHER

NOTES TO THE FINANCIAL STATEMENTS

Company number 5731255

FOR THE YEAR ENDED 31 JULY 2021

4. ANALYSIS OF CHARITABLE ANALYSIS OF CHARITABLE Direct Support Support Total Direct Support Support Total
EXPENDITURE Costs Costs 2021 Costs Costs 2020
£ £ £ £ £ £
London Higher 394,552 38,637 433,189 487,998 90,110 578,108
London Higher Europe - - - 22,574 - 22,574
London
Medicine		 &
44,210		 10,850 55,060 45,668 7,000 52,668
Healthcare
Access HE 87,164 40,000 127,164 85,479 37,500 122,979
NEON 126,396 20,000 146,396 196,344 17,000 213,344
NCOP 518,856 20,000 538,856 506,323 20,000 526,323
Curate 997 - 997 31,631 - 31,631
Mental Health 36,837 1,041 37,878 16,590 1,250 17,840
---------------- ------------------ ------------------ ---------------- ------------------ ------------------
1,209,012 130,528 1,339,540 1,392,607 172,860 1,565,467
========= ======== ======== ========= ======== ========
2021 2020
£ £
Support costs
Occupancy Cost 89,443 84,834
Administration Cost 14,142 20,505
Human Resource Cost 9,107 36,950
Depreciation 1,126 1,295
Communication Cost 204 4,472
Governance (Note 5) 12,583 13,176
Strategy Development 2,020 9,742
Banking Costs 1,903 1,886
------------------ ------------------
130,528 172,860
======== ========

Page 26 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

Company number 5731255

5. GOVERNANCE COSTS 2021 2020
£ £
Audit and related fees (including VAT) 12,570 12,090
Trustees meetings - 1,073
Company house filing 13 13
--------------- ---------------
12,583 13,176
======= =======
6. ANALYSIS OF STAFF COSTS 2021 2020
£ £
Wages and Salaries 668,794 846,282
Social security costs 61,316 67,989
Pension costs 107,130 120,624
Recruitment expenses 1,455 34,564
---------------- ----------------
838,695 1,069,459
======== ========

Included within Wages and Salaries are redundancy, settlement, termination payments made in the year of £nil (2020: £76,089).

The average number (headcount) of employees was:

2021 2020
Number Number
London Higher 7 8
London Medicine & Healthcare 1 2
Access HE 2 2
Mental Health 1 1
NEON 2 4
NCOP 6 4
----------- -----------
19 21
===== =====

During the year there were two employees (2020: two) who received emoluments exceeding £60,000 and to whom retirement benefits are accruing under a defined benefits scheme.

The remuneration falls into the following brackets:

2021 2020
Number Number
£70,000 - £80,000 - 1
£90,000 - £100,000 1 -
£150,000 - £160,000 - 1
======== ========

Pension contributions payable by the Charity for the higher earners in the year were £23,258 (2020: £34,744).

Page 27 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

Company number 5731255

No trustee received remuneration or reimbursement for expenses during the year (2020: Nil).

The key management personnel are defined as the CEO, Head of Finance and Head of AccessHE and NEON of which the total employee benefits in aggregate for the year were £216,011 (2020: £280,154).

7. TANGIBLE FIXED ASSETS IT Fixtures &
Equipment Fittings Furniture Total
£ £ £ £
Cost
At 31 July 2020 23,160 30,510 16,030 69,700
Additions - - - -
-------------- ---------------- --------------- ---------------
At 31 July 2021 23,160 30,510 16,030 69,700
-------------- ---------------- --------------- ---------------
Depreciation
At 31 July 2020 19,850 30,477 15,921 66,248
Charge for the year 1,093 33 - 1,126
-------------- ---------------- --------------- ---------------
At 31 July 2021 20,943 30,510 15,921 67,374
-------------- ---------------- --------------- ---------------
Net Book Value
At 31 July 2020 3,310 33 109 3,452
======= ======= ======= ========
At 31 July 2021 2,217 - 109 2,326
======= ======= ======= ========
All assets are held for operational
purposes
8. DEBTORS 2021 2020
£ £
Trade debtors 45,502 45,671
Other debtors - -
Prepayments and accrued income 19,368 11,302
----------------- -----------------
64,870 56,973
======== ========
9. CREDITORS: amounts falling due within one year 2021 2020
£ £
Trade creditors 38,129 84,967
Accruals 44,751 93,598
Deferred income (see below) 32,458 75,573
Other creditors 926 16,499
----------------- -----------------
116,264 270,637
======== ========

Page 28 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

Company number 5731255

Deferred income 2021 2020
£ £
Balance at start of the year 75,573 48,948
Amounts released to income (75,573) (48,948)
Amounts deferred in the year 32,458 75,573
----------------- -----------------
Balance at the end of the year 32,458 75,573
======== ========

Deferred income relates to grants & membership income invoiced/received in the year for the next period.

10. STATEMENT OF FUNDS

STATEMENT OF FUNDS
Brought Carried
forward at forward at
01/08/2020 Income Expenditure Transfers 31/07/2021
£ £ £ £ £
Restricted funds
Curate 869 - (998) - (127)
Mental Health 66,160 - (37,878) - 28,282
NCOP - 559,108 (538,857) - 20,251
NCOP refund - -
------------------ -------------- -------------- -------------- ------------------
Total Restricted funds 67,029 559,108 (577,733) - 48,404
------------------- -------------- -------------- -------------- -------------------
Unrestricted funds
General funds
London Higher 369,680 405,852 (433,189) 86,201 428,544
London Higher Europe 7,348 - - (7,348) -
London Medicine & 122,246 72,330 (55,060) - 139,516
Healthcare
Access HE 84,643 144,862 (127,163) - 102,342
NEON 73,247 150,876 (146,396) (77,727) -
Designated funds
Fixed asset fund 3,452 - - (1,126) 2,326
EAIE fund 926 - - - 926
IT fund 17,500 - - - 17,500
------------------- ---------------- -------------- --------------- -------------------
Total Unrestricted funds 679,042 773,920 (761,808) - 691,154
------------------- ---------------- -------------- -------------- -------------------
Total funds 804,173 1,333,028 (1,1339,540) - 739,558
========= ======== ======== ======== =========

Page 29 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

Company number 5731255

10. STATEMENT OF FUNDS (continued)

PRIOR YEAR Brought Carried
forward at forward at
01/08/2019 Income Expenditure Transfers 31/07/2020
£ £ £ £ £
Restricted funds
Curate - 32,500 (31,631) - 869
Mental Health - 84,000 (17,840) - 66,160
NCOP 317 584,108 (526,323) - 58,102
------------------ ------------------ ------------------ ------------------ ------------------
Total Restricted funds 317 700,608 (575,794) - 125,131
------------------- ------------------- -------------- ----------------- -------------------
Unrestricted funds
General funds
London Higher 491,685 455,047 (576,288) (764) 369,680
London Higher Europe 13,589 16,333 (22,574) - 7,348
London Medicine & 113,583 61,331 (52,668) 122,246
Healthcare
Access HE 79,923 127,699 (122,979) - 84,643
NEON 67,758 218,833 (213,344) - 73,247
Designated funds
Fixed asset fund 2,688 - - 764 3,452
EAIE fund 2,745 - (1,819) - 926
IT fund 17,500 - - - 17,500
------------------- ------------------- ------------------- ------------------- -------------------
Total Unrestricted funds 789,471 879,243 (989,672) - 679,042
------------------- ------------------- ------------------- ------------------- -------------------
Total funds 789,788 1,579,851 (1,565,466) - 804,173
========= ========= ========= ========= =========

Page 30 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

Company number 5731255

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2021 2021 2021
Restricted Unrestricted Total
Funds Funds Funds
£ £ £
Fixed assets - 2,326 2,326
Current assets 91,878 761,619 853,497
Current liabilities (43,474) (72,791) (116,265)
----------------- ----------------- -----------------
Total funds 48,404 691,154 739,558
======== ======== ========
PRIOR YEAR 2020 2020 2020
Restricted Unrestricted Total
Funds Funds Funds
£ £ £
Fixed assets - 3,452 3,452
Current assets 154,758 916,573 1,071,358
Current liabilities (29,654) (240,983) (270,637)
----------------- ----------------- -----------------
Total funds 125,131 679,042 804,173
======== ======== ========

12. OPERATING LEASE COMMITMENTS

At 31 July 2021 the charitable company had the total future minimum lease payments under noncancellable operating leases as follows:

cancellable operating leases as follows:
2021 2020
£ £
Amounts due in:
Within one year 23,518 53,363
Between two and five - 30,567
----------------- -----------------
Total operating lease commitments 23,518 83,930
======== ========

The charge made to the Statement of Financial Activities in 2021 was £53,363 (2020: £52,500).

Page 31 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

Company number 5731255

13. PENSION SCHEME

The institution participates in Universities Superannuation Scheme. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The institution is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, the institution therefore accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme. Since the institution has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the institution recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) with related expenses being recognised through the profit and loss account.

The latest available complete actuarial valuation of the Retirement Income Builder is at 31 March 2018 (the valuation date), which was carried out using the projected unit method. A valuation as at 31 March 2020 is underway but not yet complete. Since the institution cannot identify its share of USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole. The 2018 valuation was the fifth valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £63.7 billion and the value of the scheme’s technical provisions was £67.3 billion indicating a shortfall of £3.6 billion and a funding ratio of 95%

The main demographic assumption used relates to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2018 actuarial valuation. The mortality assumptions used in these figures are as follows

2018 Valuation

Mortality base table Pre-retirement

71% of AMC00 (duration 0) for males and 112% of AFC00 (duration 0) for females

Post Retirement

97.6% of SAPS S1NMA “light” for males and 102.7% of RFV00 for females.

Future improvements to CMI_2017 with a smoothing parameter of 8.5 and a long term improvement rate of 1.8% mortality pa for males and 1.6% pa for females.

Page 32 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2021

Company number 5731255

13. PENSION SCHEME (continued)

The current life expectancies on retirement at age 65 are:

2021 2020
Males currently aged 65 (years) 24.6 24.4
Females currently aged 65 (years) 26.1 25.9
Males currently aged 45 (years) 26.6 26.3
Females currently aged 45 (years) 27.9 27.7

14. Related Party

There were no related party transactions (2020: none) during the year.

15. Comparative Statement of Financial Activities

Unrestricted Restricted Total
Funds Funds 2020
Notes £ £ £
Income from
Charitable activities
Membership income 3 712,529 - 712,529
Grants 3 - 584,108 584,108
Other 3 163,363 116,500 279,867
Investment income 3 3,347 - 3,347
------------------- ------------------- -------------------
Total income 879,243 700,608 1,579,851
------------------- ------------------- -------------------
Expenditure on
Charitable activities 4 989,672 575,794 1,565,466
------------------- ------------------- -------------------
Total expenditure 989,672 575,794 1,565,466
------------------- ------------------- -------------------
Net income/Expenditure 2 (110,429) 124,814 14,385
------------------- ------------------- -------------------
Net movement in funds (110,429) 124,814 14,385
------------------- ------------------- -------------------
Reconciliation of funds
Total funds brought forward 789,471 317 789,788
------------------- ------------------- -------------------
Total Funds carried forward 679,042 125,131 804,173
======== ======== ========

All amounts are from continuing activities.

Page 33 of 33