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2022-07-31-accounts

(A company Limited by Guarantee)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

Charity Number: 1114873 Company Number: 5731255

LONDON HIGHER

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

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 2022

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
Woburn House
20-24 Tavistock Square
London
WC1H 9HQ
Company Registration Number 5731255
Charity Registration Number 1114873
Company Secretary Emmanuela Forte

LONDON HIGHER SENIOR MANAGEMENT TEAM

Diana Beech Chief Executive Officer Jenny Wetherill Chief Operating Officer Richard Boffey Head of AccessHE Chloe Bukata Head of Communications and External Affairs Emmanuela Forte Head of Finance

Page 2 of 33

LONDON HIGHER REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 31 JULY 2022

BOARD OF TRUSTEES

Middlesex University

University of Westminster

University of East London

Ravensbourne University London (joined 01 August 2021)

Goldsmiths, University of London

London Metropolitan University

Birkbeck, University of London

CO-OPTED TRUSTEES

Trinity Laban Conservatoire of Music and Dance

St George’s, University of London

University of London

OBSERVERS

Page 3 of 33

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2022

The Trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 July 2022.

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 three co-opted Trustees. In addition, London Higher Trustees invite observers from a limited number of key stakeholder organisations. London Higher has one observer 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 Charity Commission and all relevant Governance documents relating to the company. New Trustees are given a briefing on London Higher.

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 Higher’s performance against budget; advising, supporting and 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 is 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 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 three business divisions. These are listed below together with their primary functions. Each division : a) is a separate cost centre; b) is 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, Chief Operating Officer and Heads of Division meet as a SMT every quarter.

7. Business Divisions of London Higher :

Page 4 of 33

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2022

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 and alternative 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. 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 are tailored to the London region and the unique nature of the London group of HEIs. Additionally, the Mayor of London and the Greater London Authority (GLA) 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.

12. 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 the Board Agenda each year and examined 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.

Page 5 of 33

LONDON HIGHER TRUSTEES REPORT

FOR THE YEAR ENDED 31 JULY 2022

The principal risks and uncertainties identified by the charity are as follows:

No. Risk Consequence Mitigation Probability/
impact
Financial Risks
1 Members
leave or do
not make
contributions		 -
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
engagement with all members to inform
them of benefits, update them on activity
and to receive feedback.
-
Engage members via an account
management approach so LH is not relying on
one team member to keep relationships with
members.
-
Hold regular network and all member
engagement meetings.
-
All members offered the opportunity to
feedback and approve the LH Business
Strategy and Operational Plan.
-
Two pronged approach to members who give
notice, this includes a 12-month notification
clause in Mem & Arts to reengage them and
recruiting board members / mutual contacts
to persuade otherwise.
-
Aim to streamline processes so all members
for all divisions pay subscriptions in August
and ensure that are notices periods on all
contracts.
-
Demonstrate value for money and highlight
past achievements and outputs.
-
When required produce a conservative
budget to reflect decrease in membership
income.		 Probability:
2/5
Impact:
4/5
2 Reliance or
dependence
on grant
funding (Uni
Connect)		 -
Staff are
made
redundant/
leave to job
security
-
Impact on
business
forward
planning.
-
Loss of
contribution
towards
overheads/
contribution
to core staff
roles		 -
Look for alternative, longer-term, sources for
funding where possible.
-
Reduce overall reliance on project funds for
payroll for those staff members not directly
working on the project.
-
Careful contract management. Maintain good
working relationship with funders including
fostering a culture of early disclosure
concerning problems.
-
Prepare early for loss of project funding.
Including communicating to staff and
preparing options for redirecting resources.
-
Manage supplier contracts to achieve
flexibility.
-
Keep a close eye on unrestricted reserves.
-
Prepare a conservative budget.		 Probability:
4/5
Impact:
3/5

Page 6 of 33

LONDON HIGHER TRUSTEES REPORT

FOR THE YEAR ENDED 31 JULY 2022

3 LH division
becomes
untenable
financially.		 -
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.		 Probability:
3/5
Impact:
3/5
4 Financial
obligations
out last
membership
terms.		 -
Reduced
services to
members and
/or reduced
staff level or
closure of the
organisation		 -
Secured an affordable smaller office with
shorter lease terms than previously held.
-
Streamline contracts (IT, cleaning, HR, etc.)
with short or no contract lengths.
-
Robust financial procedures so no financial
commitments are made without review and
sign off from the SMT and when required LH
Board.
-
Ensure company reserves remain at sufficient
level to wind down the company if required.
-
12-month notification clause in Mem & Arts.		 Probability:
1/5
Impact:
4/5
Reputational/ Other
5 London
Higher IT
systems are
compromised
or become
inaccessible		 -
Damage to
the
reputation of
the
organisation
to be trusted
with data
-
Loss of
organisational
knowledge &
membership
contacts/
information		 -
Use Office 365 (cloud), which can be accessed
anywhere and has multiple back-up sites.
-
Test backup and retrieval systems
periodically.
-
SAGE finance software is backed up to the
cloud.
-
Implement and maintain two anti-virus
software programmes on all computers as
advised by our IT consultants.
-
Have IT and data protection policies which
staff are reminded of periodically.
-
All staff complete GDPR training periodically.		 Probability:
1/5
Impact:
3/5
6 London
Higher is
perceived as
not being
politically
impartial		 -
Members/
stakeholders
lose trust in
the
organisation		 -
CEO to seek approval from the LH Board on
contentious issues.
-
Well rounded representation at events and
networks.
-
Executive leadership to monitor minor
actions to ensure they are broadly non-
partisan.
-
Comms teams check the quality of materials
published on-line		 Probability:
1/5
Impact:
4/5
7 Retention of
staff		 -
Loss of
information
and contacts		 -
Culture and articulation of the benefits and
leave – emphasise our values.
-
Review salary banding regularly
-
Remove our dependency on any one team
member and continue to build the pipeline of
LH staff to ensure work can be covered when
staff leave.		 Probability:
4/5
Impact:
2/5

Page 7 of 33

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2022

13. 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 increases 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

14. Our core mission is to help enable our members, their staff and their students to thrive.

15. 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: 

  - **a)** A convenor: Hosting powerful and highly influential networks and events and providing opportunities for collaborative initiatives.

  - **b)** A communicator: Providing a collective influential voice for our members and promoting London as the destination of choice for students and staff.

  - **c)** A campaigner: Expertly responding to policy concerns through advocacy campaigns, raising awareness for members and creating new opportunities for partnership.

  - **d)** A champion: Promoting London’s contribution to local, national and global economies, and endorsing London as a pre-eminent world city for all students, staff, research and enterprise.

  - **e)** A collaborator: Working across member institutions, though our wide-ranging networks, to take key issues and solutions to the heart of local and national government.

  - **f)** A co-creator:  Working with members to create policies and positions that reflect the “London voice” and have as their aim a strong and healthy London higher education sector.

16. Annual Reports and Plans. 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.

17. Our Priorities include the following:

Page 8 of 33

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2022

Alongside our networks, we will hold a number of cross-network discussions and projects on issues important to our members. diversifying London’s postgraduate student community, making clear their contribution.

18. 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, we maintain our connections to our members’ senior teams and policy executives, through regular meetings and through our 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 and are developing internal KPIs to demonstrate impact and progress.

19. 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. 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.

20. 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.

Page 9 of 33

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2022

ACHIEVEMENTS AND PERFORMANCE

21. 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 meet our goals, and our goals are appropriate and have impact. During our existence we have earned a deserved reputation for advocating and promoting London’s HEIs and supporting our members in their responses to the challenges and opportunities that have emerged.

22. Outputs. Our outputs are diverse including a wide range of networks, cross-network discussions and projects 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.

Page 10 of 33

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2022

this year’s five key sector consultations; OfS (Student Outcomes, TEF & Constructing Indicators) and DfE (HE Reform and LLE), alongside ad hoc responses to APPG London as a global city and OFS consultation on support for international students.

Page 11 of 33

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2022

More details of these activities are presented in our Annual Report to members which can be downloaded from our website: https://londonhigher.ac.uk/resources/annual-review-business-plans/

FINANCIAL REVIEW

23. Our financial goal is to expand and enhance member services by offering an effective and streamlined financial administration. In 21-22 London Higher Core has released the London Higher Civic Map, mapping almost 200 examples of civic activities across London. The map was launched at an event with the deputy Mayor of London and gained extensive coverage across Higher Education press. We also began to develop our #LondonisLocal campaign, highlighting examples of transformative activity within our member institutions. A brand-new website was also at the centre of the 21-22 financial activities. Total Income (£1,042,888) decreased by £290,140, 21.7%, compared to 2021-22 (£1,333,028). The main factors were as follows:

Total expenditure decreased (£1,028,640) by £310,900, 23%, compared to 2020-21 (£1,339,540). The main contributor was the cut in OfS funds. Direct Costs decreased by £315,349 or 26% and Support Costs decreased by £4,763 or 4%.

24. Reserves Policy . Total funds as 31 July 2022 are £733,555 (2021: £739,558). Of the total funds, £27,176 (2021: £48,404) were represented by restricted funds and £706,379 (2021: £691,154) by unrestricted funds. Free Reserves (i.e. unrestricted funds excluding fixed assets and amounts designated) stood at £697,489 (2021: £670,402) at 31 July 2022.

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

Page 12 of 33

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2022

expenditure. This applies to all divisions. The current level of unrestricted reserves of £706,379 meets the criteria.

Within designated funds, a brought forward amount of £17,500 is designated for IT capital expenditure. In October 2021, London Higher upgraded the entire IT system and the balance has been transferred to Unrestricted funds. £8,890 within the designated fund represents the net book value of assets. Also, within designated funds we had the EAIE funds of £926 which related to a project which started in Sept 2019. Because of the pandemic, London Higher was unable to continue the programme for another year. The Trustees agreed to transfer the balance to unrestricted reserves

PLANS FOR 2022-23

25. Financial Plan. For the 2022-23 financial year we are forecasting income of just above £1,002,000. In July 2022 we circulated a costed Operational Plan for 2022-23 to all members which indicates how this money will be disbursed. In January/February 2023 we will revise the Plan to reflect the post-audit position.

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

Page 13 of 33

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2022

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

27. 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.)

28. 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:

29. 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.

30. 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.

31. Resolution . Approved by the London Higher Board of Trustees on 24 January 2023 and signed on its behalf by:

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Professor Amanda Broderick Chair, London Higher

Page 14 of 33

LONDON HIGHER

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF LONDON HIGHER

FOR THE YEAR ENDED 31 JULY 2022

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 2022 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.

Page 15 of 33

LONDON HIGHER

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF LONDON HIGHER FOR THE YEAR ENDED 31 JULY 2022

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

Page 16 of 33

LONDON HIGHER

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF LONDON HIGHER

FOR THE YEAR ENDED 31 JULY 2022

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 manual journal postings, recognition of membership income and grant income. Audit procedures performed by the engagement team included:

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

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

Use of our report

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

……………………………………………………….

Vikram Sandhu For and on behalf of Haysmacintyre LLP, Statutory Auditors

10 Queen Street Place London EC4R 1AG

Date: 30 January 2023

Page 17 of 33

LONDON HIGHER

STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating and Income and Expenditure Account)

FOR THE YEAR ENDED 31 JULY 2022 Company number 5731255 Company number 5731255
Unrestricted Restricted Total Total
Funds Funds 2022 2021
Notes £ £ £ £
Income from:
Charitable activities
Membership income 3 676,146 - 676,146 637,275
Grants 3 - 326,285 326,285 501,005
Other 3 17,562 1,000 18,562 134,586
Investment income 3 1,644 - 1,644 2,059
------------------- ------------------- ------------------- -------------------
Total income 695,352 327,285 1,022,637 1,274,925
------------------- ------------------- ------------------- -------------------
Expenditure on:
Charitable activities 4 680,000 348,640 1,028,640 1,339,540
------------------- ------------------- ------------------- -------------------
Total expenditure 680,000 348,640 1,028,640 1,339,540
------------------- ------------------- ------------------- -------------------
Net income/(expenditure) 2 15,352 (21,355) (6,003) (64,615)
------------------- ------------------- ------------------- -------------------
Net movement in funds 15,352 (21,355) (6,003) (64,615)
------------------- ------------------- ------------------- -------------------
Reconciliation of funds
Total funds brought forward 691,154 48,404 739,558 804,173
------------------- ------------------- ------------------- -------------------
Transfer between funds (127) 127 - -
Total Funds carried forward 706,379 27,176 733,555 739,558
======== ======== ======== ========

All amounts derive from continuing activities. There are no other gains or losses other than those shown above. The comparative Statement of Financial Activities is in note 15.

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

Page 18 of 33

LONDON HIGHER BALANCE SHEET AT 31 JULY 2022

Company number 5731255

2022 2021
Note £ £
FIXED ASSETS 7 8,890 2,326
--------------- ---------------
CURRENT ASSETS
Debtors 8 37,817 64,870
Cash at bank and in hand 846,473 788,626
--------------- ---------------
884,290 853,496
CREDITORS: amounts falling due
within one year 9 (159,625) (116,264)
--------------- ---------------
NET CURRENT ASSETS 724,665 737,232
--------------- ---------------
NET ASSETS 733,555 739,558
======== ========
FUNDS
Unrestricted funds
General funds 10 697,489 672,222
Designated funds 10 8,890 18,932
Restricted funds 10 27,176 48,404
---------------- ----------------
733,555 739,558
======== ========

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 24 January 2023 and were signed on their behalf by:

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

Page 19 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

Company number 5731255

2022 2021
Cash flows from operating activities: £ £
Net income for the reporting period
(per the statement of financial activities) (6,003) (64,615)
Adjustments for:
Depreciation charges 3,307 1,126
Interest received (1,644) (2,059)
Decrease/(increase) in debtors 27,053 (23,798)
Increase/(decrease) in creditors 43,360 (138,472)
-------------- --------------
Net cash provided by/(used in) operating activities 66,073 (227,818)
======= =======
Cash flows from investing activities
Investment income 1,644 2,059
-------------- --------------
Net cash provided by investing activities 1,644 2,059
-------------- --------------
Cash flows from capital expenditure and financial investment
Payments to acquire tangible fixed assets (9,870) -
-------------- --------------
Net cash used in financing activities (9,870) -
-------------- --------------
Change in cash and cash equivalents in the reporting period 57,847 (225,759)
Cash and cash equivalents at the beginning of the reporting 788,626 1,014,385
period
-------------- --------------
Cash and cash equivalents at the end of the reporting period 846,473 788,626
======= =======
Reconciliation of net debt 2021 2022
At the start Cashflow At the end
of the year of the year
£ £ £
Cash in hand 788,626 57,847 846,473
-------------- --------------
Total cash and cash equivalents 788,626 57,847 846,473
======= ======= =======

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 2022

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

During 21-22 London Higher re -engaged with 5 extra members strengthening the membership income position. More members have also joined during the first part of 22-23. Nonetheless the cost-of-living crisis is a strong reality and the company is taking the issue very seriously. Our work remains 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. Costs are kept under constant review to check they are value for money. The Ofs grant is coming to an end in July 2023 and Ofs’s decision to continue will only be taken in late March 2023. Having taken all these elements into consideration and reviewing 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 give 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 2022

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 multi-employer 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) with the resulting expense recognised in the profit and loss account. The directors are satisfied that the scheme provided by USS meets the definition of a multi-employer scheme.

The USS pension scheme is in a deficit position and a proportion of the contributions London Higher is paying to the scheme is in 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 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 AccessHE UniConnect

Membership and charitable activity costs include expenditure which is directly attributable to more than one activity. These costs 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 2022

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 office running costs, finance function, 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. 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 2022

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 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 2022

Company number 5731255

2. NET INCOME/(EXPENDITURE) 2022 2021
£ £
This is stated after charging:
Auditors’ remuneration (excl VAT) 11,000 10,000
Depreciation 3,307 1,126
Operating lease rentals 54,629 53,363
========= =========
3. INCOME
2022 2021
£ £
Membership Contributions
London Higher Members 429,821 363,300
London Medicine 84,250 72,330
London Partners 39,992 40,493
AccessHE 122,083 125,542
NEON - 35,610
---------------- ----------------
676,146 637,275
Grants
Ofs 346,536 559,108
Underspend (20,251) (58,103)
---------------- ----------------
326,285 501,005
Other
Project & event income 18,562 134,586
---------------- ----------------
18,562 134,586
---------------- ----------------
Total charitable income 1,020,993 1,272,866
---------------- ----------------
Investment Income 1,644 2,059
---------------- ----------------
1,644 2,059
---------------- ----------------
Total income 1,022,637 1,274,925
======== ========

Page 25 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

Company number 5731255

4. ANALYSIS Direct Support Support Total Direct Support Support Total
CHARITABLE
EXPENDITURE Costs Costs 2022 Costs Costs 2021
£ £ £ £ £ £
London Higher 397,102 75,124 472,226 394,552 38,637 433,189
London Medicine &
67,820		 11,000 78,820 44,210 10,850 55,060
Healthcare
AccessHE 99,787 29,167 128,954 87,164 40,000 127,164
NEON - - - 126,396 20,000 146,396
UniConnect 327,403 20,000 347,403 518,856 20,000 538,856
Curate - - - 997 - 997
Mental Health 1,237 - 1,237 36,837 1,041 37,878
---------------- ------------------ ------------------ ---------------- ------------------ ------------------
893,349 135,291 1,028,640 1,209,012 130,528 1,339,540
========= ======== ======== ========= ======== ========
2022 2021
£ £
Support costs
Occupancy Cost 80,072 89,443
Administration Cost 18,463 14,142
Human
Resource		 15,205 9,107
Cost
Depreciation 3,307 1,126
Communication Cost - 204
Governance (Note 5) 13,213 12,583
Strategy 3,450 2,020
Development
Banking Charges 1,581 1,903
------------------ ------------------
135,291 130,528
======== ========

Page 26 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

Company number 5731255

5. GOVERNANCE COSTS 2022 2021
£ £
Audit and related fees (including VAT) 13,200 12,570
Trustees’ meetings - -
Company house filing 13 13
--------------- ---------------
13,213 12,583
======= =======
6. ANALYSIS OF STAFF COSTS 2022 2021
£ £
Wages and Salaries 598,225 668,794
Social security costs 50,018 61,316
Pension costs 98,185 107,130
Recruitment expenses 7,604 1,455
---------------- ----------------
754,032 838,695
======== ========

Included within Wages and Salaries are redundancy, settlement, termination payments made in the year of £18,000 (2021: £nil).

The average number (headcount) of employees was:

2022 2021
Number Number
London Higher 8 7
London Medicine & Healthcare 1 1
AccessHE 2 2
Mental Health - 1
NEON - 2
NCOP 5 6
----------- -----------
16 19
===== =====

During the year there were three employees (2021: 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:

2022 2021
Number Number
£90,000 - £100,000 1 1
£150,000 - £160,000 - -
======== ========

Pension contributions payable by the Charity for the higher earners in the year were £17,776 (2021: £23,258).

Page 27 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

Company number 5731255

No trustee received remuneration or reimbursement for expenses during the year (2021: Nil).

The key management personnel are defined as the CEO, Head of Finance, and Head of AccessHE of which the total employee benefits in aggregate for the year were £239,270 (2021: £216,011).

7. TANGIBLE FIXED ASSETS IT Fixtures &
Equipment Fittings Furniture Total
£ £ £ £
Cost
At 31 July 2021 23,160 30,510 16,030 69,700
Additions 9,870 - - 9,870
-------------- ---------------- --------------- ---------------
At 31 July 2022 33,030 30,510 16,030 79,570
-------------- ---------------- --------------- ---------------
Depreciation
At 31 July 2021 20,943 30,510 15,920 67,373
Charge for the year 3,307 - - 3,307
-------------- ---------------- --------------- ---------------
At 31 July 2022 24,250 30,510 15,920 70,680
-------------- ---------------- --------------- ---------------
Net Book Value
At 31 July 2021 2,217 - 110 2,327
======= ======= ======= ========
At 31 July 2022 8,780 - 110 8,890
======= ======= ======= ========
All assets are held for operational
purposes
8. DEBTORS 2022 2021
£ £
Trade debtors 11,025 45,502
Other debtors - -
Prepayments and accrued income 26,792 19,368
----------------- -----------------
37,817 64,870
======== ========
9. CREDITORS: amounts falling due within one year 2022 2021
£ £
Trade creditors 38,072 38,129
Accruals 65,991 44,751
Deferred income (see below) 54,857 32,458
Other creditors 705 926
----------------- -----------------
159,625 116,264
======== ========

Page 28 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

Company number 5731255

Deferred income 2022 2021
£ £
Balance at start of the year 32,458 75,573
Amounts released to income (32,458) (75,573)
Amounts deferred in the year 54,857 32,458
----------------- -----------------
Balance at the end of the year 54,857 32,458
======== ========

Deferred income relates to grants and membership income, invoiced/received in the year but which relates to the next financial year.

10. STATEMENT OF FUNDS

STATEMENT OF FUNDS
Brought Carried
forward at forward at
01/08/2021 Income Expenditure Transfers 31/07/2022
£ £ £ £ £
Restricted funds
Curate (127) - - 127 -
Mental Health 28,282 - (1,237) - 27,045
UniConnect 20,251 327,285 (347,403) - 133
------------------ -------------- -------------- -------------- ------------------
Total Restricted funds 48,404 327,285 (348,640) 127 27,176
------------------ -------------- -------------- -------------- ------------------
Unrestricted funds
General funds
London Higher 428,544 479,507 (472,226) 11,735 447,560
London Medicine & 139,516 84,250 (78,820) - 144,946
Healthcare
AccessHE 102,342 131,595 (128,954) - 104,983
Designated funds
Fixed asset fund 2,326 - - 6,564 8,890
EAIE fund 926 - - (926) -
IT fund 17,500 - - (17,500) -
------------------- ---------------- -------------- --------------- -------------------
Total Unrestricted funds 691,154 695,352 (680,000) (127) 706,379
------------------- ---------------- -------------- -------------- -------------------
Total funds 739,558 1,022,637 (1,028,640) - 733,555
========= ======== ======== ======== =========

Page 29 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

Company number 5731255

10. STATEMENT OF FUNDS (continued)

PRIOR YEAR 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
UniConnect 58,103 501,005 (538,857) - 20,251
------------------ ------------------ ------------------ ------------------ ------------------
Total Restricted funds 125,132 501,005 (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
AccessHE 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 1,274,925 (1,339,540) - 739,558
========= ========= ========= ========= =========

Page 30 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

Company number 5731255

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2022 2022 2022
Restricted Unrestricted Total
Funds Funds Funds
£ £ £
Fixed assets - 8,890 8,890
Current assets 54,476 829,814 884,290
Current liabilities (27,428) (132,197) (159,625)
Transfer between funds 127 (127)
----------------- ----------------- -----------------
Total funds 27,175 706,380 733,555
======== ======== ========
PRIOR YEAR 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
======== ======== ========

12. OPERATING LEASE COMMITMENTS

At 31 July 2022 the charitable company had the total future minimum lease payments under operating leases (break clause 01 Feb 2024) as follows:

eases (break clause 01 Feb 2024) as follows:
2022 2021
£ £
Amounts due in:
Within one year 50,400 23,518
Between two and five 166,665 -
----------------- -----------------
Total operating lease commitments 217,065 23,518
======== ========

The charge made to the Statement of Financial Activities in 2022 was £54,629 (2021: £53,363).

Page 31 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

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 information provided is based on the last formal completed actuarial valuation of Universities Superannuation Scheme (the scheme) which was as at 31 March 2020 and completed in October 2021. The actuary’s report on the 2020 valuation is published in full on the USS website.

The 2020 valuation was the sixth valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £66.5 billion and the value of the scheme’s technical provisions was £80.6 billion indicating a shortfall of £14.1 billion and a funding ratio of 83%.

The main demographic assumptions used relate to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2020 actuarial valuation. The mortality assumptions used in these figures are as follows:

2020 Valuation

Mortality base
table		 101% of S2PMA“light”for males and 95% of S3PFA for females
Future
improvements
mortality		 CMI 2019 with a smoothing parameter of 7.5, an initial addition of 0.5% p.a. and a long-
term improvement rate of 1.8% pa for males and 1.6% pa for females

13. PENSION SCHEME (continued)

The current life expectancies on retirement at age 65 are:

2022 2021
Males currently aged 65 (years) 23.9 24.7
Females currently aged 65 (years) 25.5 26.1
Males currently aged 45 (years) 25.9 26.7
Females currently aged 45 (years) 27.3 27.9

Page 32 of 33

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS

Company number 5731255

FOR THE YEAR ENDED 31 JULY 2022

14. Related Party

There were no related party transactions (2021: none) during the year.

15. Comparative Statement of Financial Activities

Unrestricted Restricted Total
Funds Funds 2021
Notes £ £ £
Income from
Charitable activities
Membership income 3 637,275 - 637,275
Grants 3 - 501,005 501,005
Other 3 134,586 - 134,586
Investment income 3 2,059 - 2,059
------------------- ------------------- -------------------
Total income 773,920 501,005 1,274,925
------------------- ------------------- -------------------
Expenditure on
Charitable activities 4 761,808 577,732 1,339,540
------------------- ------------------- -------------------
Total expenditure 761,808 577,732 1,339,540
------------------- ------------------- -------------------
Net income/Expenditure 2 12,112 (76,727) (64,615)
------------------- ------------------- -------------------
Net movement in funds 12,112 (76,727) (64,615)
------------------- ------------------- -------------------
Reconciliation of funds
Total funds brought forward 679,042 125,131 804,173
------------------- ------------------- -------------------
Total Funds carried forward 691,154 48,404 739,558
======== ======== ========

Page 33 of 33