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2023-07-31-accounts

(A company Limited by Guarantee)

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Charity Number: 1114873 Company Number: 5731255

LONDON HIGHER

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

CONTENTS Page
Reference and administrative details 2 - 3
Trustees’ Report 4 - 12
Independent auditors’ report 13 - 15
Statement of financial activities 16
Balance sheet 17
Statement of Cash flows 18
Notes to the financial statements 19 - 31

Page 1 of 31

LONDON HIGHER REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 31 JULY 2023

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 Jenny Wetherill

LONDON HIGHER SENIOR MANAGEMENT TEAM

Diana Beech Chief Executive Officer Jenny Wetherill Chief Operating Officer Richard Boffey Head of AccessHE Mark Corbett Head of Policy (appointed January 2023 Jolanta Edwards Director of Strategy (appointed June 2023) Emmanuela Forte Head of Finance (resigned March 2023)

Page 2 of 31

LONDON HIGHER REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 31 JULY 2023

BOARD OF TRUSTEES

Middlesex University

University of Westminster

University of East London

Ravensbourne University London

Goldsmiths, University of London

London South Bank 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 31

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2023

The Trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 July 2023.

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 Charities Commission and all relevant Governance documents relating to the company. New Trustees are given a briefing on London Higher.

5. Sub committees. London Higher Board of Trustees has three sub committees:

6. Structure of the Executive . The Executive is divided into three 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, Chief Operating Officer and Heads of Division meet as a SMT every week.

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LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2023

7. Business Divisions of London Higher :

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). HEIs in London are our company members. Members are required to submit an application to be considered for membership. This application is reviewed against members criteria by the Membership Committee who advise the Board of Trustees on whether to accept or reject the application. In the Members’ Agreement members 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. Centres membership . London Higher also recognises an additional partnership category (distinct from members) which includes higher education providers based outside London who have opened centres in London.

11. Related parties . The policy landscape for higher education is currently set by the Department for Education and the Department for Science, Innovation and Technology (with some input from the Department for Health and Department of Business, Energy & Industrial Strategy when relevant) and is implemented by the Office for Students (OfS), the independent regulator of HE in England. London Higher seeks to influence policy at local and national 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. 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.

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 31

LONDON HIGHER TRUSTEES REPORT

FOR THE YEAR ENDED 31 JULY 2023

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

No. Risk Probability
(1-5)		 Impact
(1-5)
1 Changes ingovernment and/or togovernmentpolicies 5 4
2 Economic downturn effectingHEIs 3 4
3 Member dissatisfaction: 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'		 2 4
4 London Higher is perceived as not being politically impartial or receives
negative media coverage resulting in members/ stakeholders losing trust
in the organisation		 1 3
5 One or more of LH pillars membership (AHE, LMED, LHEG) are financially
untenable and unable to contribute towards overheads of business.		 2 4
6 Removal of grant funding (Uni Connect): Staff are made redundant/
leave for job security. Impact on business forward planning.
Loss of contribution towards overheads/ contribution to core staff roles		 4 3
7 Financial obligations outlast membership terms resulting in reduced
services to members and /or reduced staff level or closure of the
organisation		 1 5
8 Board conflicts or biased influencing. Board members act in the interests
of their own institutions rather than in the best interests of the business		 3 3
9 Key leadership roles leave causing reputational damage and key
knowledge lost		 2 4
10 Declining membership participation/Heads of Institutions leave and their
replacements do not renew the LH subscription		 3 2
11 Ineffective communications strategy 2 3
12 Growing membership resulting in too much work for current LH team to
manage/ or risk of diluting the essence and mission of LH
London Higher IT systems are compromised or become inaccessible		 2 2
13 1 4
14 Failure to comply with H&S regulations 1 3
15 Breaches/ safeguarding issues when working with children/ children's
data (under 16 - AHE division only)		 4 2
16 Non-compliance with data protection laws 1 3
17 Retention of staff: loss of institutional knowledge, contacts and business
continuitywith fast turnover of staff.		 4 2

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 change historically had to be authorised by the Remuneration Committee and reported to the Board of Trustees. Since 19-20 COL increases are

Page 6 of 31

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2023

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

1. Our vision: At London Higher, we seek to represent the full diversity of higher education in London, and we support our members by advocating for and on behalf of London’s universities and higher education colleges. 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.

2. Our mission: We help our members to address the 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 for their interests, locally and nationally. We influence and work with a wide range of stakeholders and networks as a trusted, non-partisan and professional partner.

At London Higher, we support our members by advocating for and on behalf of London’s higher education sector. We act:

3. 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.

4. Our principles. Through the work on our Business Strategy 2023-26 we have identified four key principles that will determine our priorities over the next three years. These are based on the London HE sector being:

A local asset

A global magnet

An engine for innovation and enterprise

Page 7 of 31

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2023

A source of skills and jobs

5. 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 more than 50 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.

6. 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

1. For over 20 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 and other channels; 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, including though our events. This cycle of engagement-action-promotion is how we ensure that our outputs meet our goals, and our goals are appropriate and have impact. We have earned, and in the past few years strengthened, our deserved reputation for advocating and promoting London’s HEIs and supporting our members in their responses to the challenges and opportunities that have emerged.

2. Outputs. Our outputs are diverse, including a wide range of projects and publications, as well as campaigns and data analysis, promotional material, and more. In this section we give summaries of some of the main activities each of our divisions has undertaken during the past year, including our network activity, meetings, lobbying work and events in addition to our outputs:

Page 8 of 31

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2023

Page 9 of 31

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2023

FINANCIAL REVIEW

7. Our financial goal is to expand and enhance member services by offering an effective and streamlined financial administration. Total income 2022-23 was £1,085,367, an increase of £62,730, 6.1%, compared to 2021-22 (£1,022,637). The main factors were as follows:

Total expenditure 2022-23 (£1,062,078) increased by £33,438, 3%, compared to 2021-22 (£1,028,640). The main contributors the growth were higher project and direct delivery costs (including specific project costs where specific grants/sponsorship was received) offset by lower support costs and lower spending on the Uni Connect programme to match the lower level of OfS grant. Direct Costs increased by £60,997 or 7% and Support Costs decreased by £27,559 or 20%.

8. Reserves Policy . Total funds as 31 July 2023 are £756,844 (2021-22: £733,555). Of the total funds, £25,675 (2021-22: £27,176) were represented by restricted funds and £731,169 (2021-22: £706,379) by unrestricted funds. Free Reserves (i.e. unrestricted funds excluding fixed assets and amounts designated) stood at £726,291 (2021-22: £697,489) at 31 July 2023.

Page 10 of 31

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2023

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 Free Reserves of £726.291 meets the criteria.

The Net Book Value of Fixed assets was £4,877 and London Higher has no other Designated Reserves as of 31 July 2023.

PLANS FOR 2023-24

9. Financial Plan. For the 2023-24 financial year we are forecasting income of £1,178,780 and expenses of £1,165,234 producing a budgeted surplus of £13,546 or 1% of income. The budget was presented to the Finance Committee of the Board in June 2023 and approved by the Board in July 2023.

10. Strategies for the year.

Page 11 of 31

LONDON HIGHER TRUSTEES REPORT FOR THE YEAR ENDED 31 JULY 2023

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

1. 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.)

2. 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:

3. 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.

4. 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.

5. Resolution . Approved by the London Higher Board of Trustees on 24 January 2024 and signed on its behalf by:

………………………………………………

Professor Amanda Broderick Chair, London Higher

Page 12 of 31

LONDON HIGHER

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF LONDON HIGHER

FOR THE YEAR ENDED 31 JULY 2023

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 2023 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 13 of 31

LONDON HIGHER

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF LONDON HIGHER

FOR THE YEAR ENDED 31 JULY 2023

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 12 , 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 14 of 31

LONDON HIGHER

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF LONDON HIGHER

FOR THE YEAR ENDED 31 JULY 2023

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: 19th February 2024

Page 15 of 31

LONDON HIGHER

STATEMENT OF FINANCIAL ACTIVITIES

(Incorporating and Income and Expenditure Account)

FOR THE YEAR ENDED 31 JULY 2023 Company number 5731255 Company number 5731255
Unrestricted Restricted Total Total
Funds Funds 2023 2022
Notes £ £ £ £
Income from:
Charitable activities
Membership income 3 757,299 - 757,299 676,146
Grants 3 - 258,498 258,498 326,285
Other 3 63,618 - 63,618 18,562
Investment income 3 5,952 - 5,952 1,644
------------------- ------------------- ------------------- -------------------
Total income 826,869 258,498 1,085,367 1,022,637
------------------- ------------------- ------------------- -------------------
Expenditure on:
Charitable activities 4 802,079 259,999 1,062,078 1,028,640
------------------- ------------------- ------------------- -------------------
Total expenditure 802,079 259,999 1,062,078 1,028,640
------------------- ------------------- ------------------- -------------------
Net income/(expenditure) 2 24,790 (1,501) 23,289 (6,003)
------------------- ------------------- ------------------- -------------------
Net movement in funds 24,790 (1,501) 23,289 (6,003)
------------------- ------------------- ------------------- -------------------
Reconciliation of funds
Total funds brought forward 706,379 27,176 733,555 739,558
------------------- ------------------- ------------------- -------------------
Transfer between funds - - - -
Total Funds carried forward 731,169 25,675 756,844 733,555
======== ======== ======== ========

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 on note 15.

The notes on pages 19 to 31 form part of the accounts.

Page 16 of 31

LONDON HIGHER BALANCE SHEET AT 31 JULY 2023

Company number 5731255

2023 2022
Note £ £
FIXED ASSETS 7 4,877 8,890
--------------- ---------------
CURRENT ASSETS
Debtors 8 41,849 37,817
Cash at bank and in hand 766,055 846,473
--------------- ---------------
807,904 884,290
CREDITORS: amounts falling due
within one year 9 (55,937) (159,625)
--------------- ---------------
NET CURRENT ASSETS 751,967 724,665
--------------- ---------------
NET ASSETS 756,844 733,555
======== ========
FUNDS
Unrestricted funds
General funds 10 726,291 697,489
Designated funds 10 4,878 8,890
Restricted funds 10 25,675 27,176
---------------- ----------------
756,844 733,555
======== ========

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 2024 and were signed on their behalf by:

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

Page 17 of 31

LONDON HIGHER STATEMENT OF CASH FLOWS

Company number 5731255

FOR THE YEAR ENDED 31 JULY 2023

2023 2022
Cash flows from operating activities: £ £
Net income for the reporting period
(per the statement of financial activities) 23,289 (6,003)
Adjustments for:
Depreciation charges 4,846 3,307
Interest received (5,952) (1,644)
Decrease/(increase) in debtors (4,032) 27,053
(Decrease)/increase in creditors (103,687) 43,360
-------------- --------------
Net cash provided by/(used in) operating activities (85,535) 66,073
======= =======
Cash flows from investing activities
Investment income 5,952 1,644
-------------- --------------
Net cash provided by investing activities 5,952 1,644
-------------- --------------
Cash flows from capital expenditure and financial investment
Payments to acquire tangible fixed assets (835) (9,870)
-------------- --------------
Net cash used in financing activities (835) (9,870)
-------------- --------------
Change in cash and cash equivalents in the reporting period (80,418) 57,847
Cash and cash equivalents at the beginning of the reporting 846,473 788,626
period
-------------- --------------
Cash and cash equivalents at the end of the reporting period 766,055 846,473
======= =======
Reconciliation of net debt 2022 2023
At the start Cashflow At the end
of the year of the year
£ £ £
Cash in hand 846,473 (80,418)
766,055
-------------- -------------- --------------
Total cash and cash equivalents 846,473 (80,418) 766,055
======= ======= =======

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

Page 18 of 31

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

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 22-23 London Higher engaged with eight extra members strengthening the membership income position further. In addition, three more members have also joined during the first part of 23-24 and further potential members are in conversation with London Higher. Nonetheless the cost-of-living crisis is a strong reality and the company is taking the issue very seriously. In 2023 we launched a new threeyear business strategy which was developed in consultation with our members and is line with the members’ objectives, as well as the sector as a whole. The company has seen its profile rise and received praise and positive feedback from across the membership and sector. This positive feedback has given London Higher more confidence about the future.

Costs are kept under constant review to check they are value for money. OfS grant is coming to an end in July 2024 and the decision to continue will only be taken in late March 2024. Considering all these factors, and having completed a cash flow analysis for the next 18 months which considers 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.

Page 19 of 31

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Company number 5731255

1. ACCOUNTING POLICIES (continued)

Critical accounting judgements and key sources of estimation uncertainty (continued)

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 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 is recognised in profit or loss. The directors 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 accrual 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:

Page 20 of 31

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Company number 5731255

1. ACCOUNTING POLICIES (continued)

Expenditure London Higher London Medicine & Healthcare AccessHE Uni Connect Mental Health

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.

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. 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.

Page 21 of 31

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Company number 5731255

1. ACCOUNTING POLICIES (continued)

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.

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 22 of 31

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS

Company number 5731255

FOR THE YEAR ENDED 31 JULY 2023

2. NET INCOME/(EXPENDITURE) 2023 2022
£ £
This is stated after charging:
Auditors’ remuneration (excluding VAT)
- current year 12,167 11,000
Depreciation 4,846 3,307
Operating lease rentals 50,400 54,629
========= =========
3. INCOME
2023 2022
£ £
Membership Contributions
London Higher Members 487,768 429,821
London Medicine 96,500 84,250
London Partners 51,929 39,992
AccessHE 121,102 122,083
---------------- ----------------
757,299 676,146
Grants
Ofs 258,631 346,536
Underspend (133) (20,251)
---------------- ----------------
258,498 326,285
Other
Project & event income 63,618 18,562
---------------- ----------------
63,618 18,562
---------------- ----------------
Total charitable income 1,079,415 1,020,993
---------------- ----------------
Investment Income 5,952 1,644
---------------- ----------------
5,952 1,644
---------------- ----------------
Total income 1,085,367 1,022,637
======== ========

Page 23 of 31

LONDON HIGHER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Company number 5731255

**4. ** ANALYSIS Direct Support Support Total Direct Support Support Total
CHARITABLE
EXPENDITURE Costs Costs 2023 Costs Costs 2022
£ £ £ £ £ £
London Higher 507,723 50,732 558,455 397,102 75,124 472,226
London Medicine & 82,197 11,000 93,197 67,820 11,000 78,820
Healthcare
AccessHE 119,427 31,000 150,427 99,787 29,167 128,954
Uni Connect 229,162 15,000 244,162 327,403 20,000 347,403
Mental Health 15,837 - 15,837 1,237 - 1,237
---------------- ------------------ ------------------ ---------------- ------------------ ------------------
954,346 107,732 1,062,078 893,349 135,291 1,028,640
========= ======== ======== ========= ======== ========
2023 2022
£ £
Support costs
Occupancy Cost 54,072 80,072
Administration Cost 14,092 18,463
Human Resource 12,330 15,205
Cost
Depreciation 4,847 3,307
Communication Cost - -
Governance (Note 5) 20,151 13,213
Strategy 1,140 3,450
Development
Banking Charges 1,100 1,581
------------------ ------------------
107,732 135,291
======== ========

Page 24 of 31

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Company number 5731255

5. GOVERNANCE COSTS 2023 2022
£ £
Audit fee (including VAT) 14,600 13,200
Accountancy fee 5,400 -
Trustees meetings 138 -
Company house filing 13 13
--------------- ---------------
20,151 13,213
======= =======
6. ANALYSIS OF STAFF COSTS 2023 2022
£ £
Wages and Salaries 620,054 598,225
Social security costs 53,671 50,018
Pension costs 102,348 98,185
Recruitment expenses 1,685 7,604
---------------- ----------------
777,758 754,032
======== ========

Included within Wages and Salaries are redundancy, settlement, termination payments made in the year of £3,997 (2022: £18,000).

The average number (headcount) of employees was:

2023 2022
Number Number
London Higher 9 8
London Medicine & Healthcare - 1
AccessHE 2 2
Mental Health - -
Uni Connect 4 5
----------- -----------
15 16
===== =====

During the year there was one employee (2022: three) 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:

2023 2022
Number Number
£90,000 - £100,000 1 1
======== ========

Pension contributions payable by the Charity for the higher earners in the year were £20,141 (2022: £17,776).

No trustee received remuneration or reimbursement for expenses during the year (2022: Nil).

Page 25 of 31

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS

Company number 5731255

FOR THE YEAR ENDED 31 JULY 2023

The key management personnel are defined as the CEO, COO, Head of AccessHE, Head of Policy and Director of Strategy of which the total employee benefits in aggregate for the year were £280,421 (2022: £239,270).

TANGIBLE FIXED ASSETS IT Fixtures &
Equipment Fittings Furniture Total
£ £ £ £
Cost
At 31 July 2022 33,030 30,510 16,030 79,570
Additions 834 - - 834
Disposals (15,266) (29,735) (13,995) (58,996)
-------------- ---------------- --------------- ---------------
At 31 July 2023 18,598 775 2,035 21,408
-------------- ---------------- --------------- ---------------
Depreciation
At 31 July 2022 24,250 30,510 15,921 70,681
Charge for the year 4,737 - 109 4,846
Elim on disposal (15,266) (29,735) (13,995) (58,996)
-------------- ---------------- --------------- ---------------
At 31 July 2023 13,721 775 2,035 16,531
-------------- ---------------- --------------- ---------------
Net Book Value
At 31 July 2022 8,780 - 110 8,890
======= ======= ======= ========
At 31 July 2023 4,877 - - 4,877
======= ======= ======= ========
DEBTORS 2023 2022
£ £
Trade debtors 9,040 11,025
Other debtors - -
Prepayments and accrued income 32,809 26,792
----------------- -----------------
41,849 37,817
======== ========
CREDITORS: amounts falling due within one year 2023 2022
£ £
Trade creditors 28,134 38,072
Accruals 20,000 65,991
Deferred income (see below) 6,910 54,857
Other creditors 893 705
----------------- -----------------
55,937 159,625
======== ========

7. TANGIBLE FIXED ASSETS

8. DEBTORS

9. CREDITORS: amounts falling due within one year

Page 26 of 31

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Company number 5731255

Deferred income 2023 2022
£ £
Balance at start of the year 54,857 32,458
Amounts released to income (54,857) (32,458)
Amounts deferred in the year 6,910 54,857
----------------- -----------------
Balance at the end of the year 6,910 54,857
======== ========

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
01/08/2022 Income Expenditure Transfers 31/07/2023
£ £ £ £ £
Restricted funds
Curate - - - - -
Mental Health 27,045 - (15,837) - 11,208
Uni Connect 131 258,498 (244,162) - 14,467
------------------ -------------- -------------- -------------- ------------------
Total Restricted funds 27,176 258,498 (259,999) - 25,675
------------------ -------------- -------------- -------------- ------------------
Unrestricted funds
General funds
London Higher 447,560 581,349 (558,455) 4,012 474,466
London Medicine & 144,946 96,500 (93,197) - 148,249
Healthcare
AccessHE 104,983 149,020 (150,427) - 103,576
Designated funds
Fixed asset fund 8,890 - - (4,012) 4,878
EAIE fund - - - - -
IT fund - - - - -
------------------- ---------------- -------------- --------------- -------------------
Total Unrestricted funds 706,379 826,869 (802,079) - 731,169
------------------- ---------------- -------------- -------------- -------------------
Total funds 733,555 1,085,367 (1,062,078) - 756,844
========= ======== ======== ======== =========

Page 27 of 31

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Company number 5731255

10. STATEMENT OF FUNDS (continued)

PRIOR YEAR 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
Uni Connect 20,249 327,285 (347,403) - 131
------------------ -------------- -------------- -------------- ------------------
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 28 of 31

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Company number 5731255

10. STATEMENT OF FUNDS (continued)

11. ANALYSIS OF NET ASSETS BETWEEN FUNDS

2023 2023 2023
Restricted Unrestricted Total
Funds Funds Funds
£ £ £
Fixed assets - 4,878 4,878
Current assets 39,331 768,571 807,902
Current liabilities (13,656) (42,280) (55,936)
Transfer between funds - - -
----------------- ----------------- -----------------
Total funds 25,675 731,169 756,844
======== ======== ========
PRIOR YEAR 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
======== ======== ========

Page 29 of 31

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Company number 5731255

12. OPERATING LEASE COMMITMENTS

At 31 July 2023 the charitable company had the total future minimum lease payments under operating leases (breaking clause 01 Feb 2024) as follows:

2023 2022
£ £
Amounts due in:
Within one year 50,400 50,400
Between two and five 116,265 166,665
----------------- -----------------
Total operating lease commitments 166,665 217,065
======== ========

The charge made to the Statement of Financial Activities in 2023 was £50,400 (2022: £54,629).

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 to
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.

Page 30 of 31

LONDON HIGHER NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

Company number 5731255

13. PENSION SCHEME (continued)

The current life expectancies on retirement at age 65 are:

2023 2022
Males currently aged 65 (years) 23.9 23.9
Females currently aged 65 (years) 25.5 25.5
Males currently aged 45 (years) 25.9 25.9
Females currently aged 45 (years) 27.3 27.3

14. Related Party

There were no related party transactions (2022: none) during the year.

15. Comparative Statement of Financial Activities

Unrestricted Restricted Total
Funds Funds 2022
Notes £ £ £
Income from
Charitable activities
Membership income 3 676,146 - 676,146
Grants 3 - 326,285 326,285
Other 3 17,562 1,000 18,562
Investment income 3 1,644 - 1,644
------------------- ------------------- -------------------
Total income 695,352 327,285 1,022,637
------------------- ------------------- -------------------
Expenditure on
Charitable activities 4 680,000 348,640 1,028,640
------------------- ------------------- -------------------
Total expenditure 680,000 348,640 1,028,640
------------------- ------------------- -------------------
Net income/Expenditure 2 15,352 (21,355) (6,003)
------------------- ------------------- -------------------
Net movement in funds 15,352 (21,355) (6,003)
------------------- ------------------- -------------------
Reconciliation of funds
Total funds brought forward 691,154 48,404 739,558
------------------- ------------------- -------------------
Transfer between funds (127) 127 -
Total Funds carried forward 706,379 27,176 733,555
======== ======== ========

Page 31 of 31