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2024-07-31-accounts

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

London Higher

Trustees Annual Report and Financial Statements

For the year ended 31 July 2024

Charity number: 1114873 Company Number: 5731255

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

CONTENTS Page
Reference and administra�ve details 3 - 4
Trustees’ Report 4 - 16
Independent auditor’s’ report 17 - 20
Statement of fnancial ac�vi�es 21
Balance Sheet 22
Statement of Cash fows 23
Notes to the fnancial statements 24 - 41

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London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

Reference and Administra�ve details

London Higher

Charity number: 1114873 Company Number: 5731255

Woburn House 20-24 Tavistock Square London WC1H 9HQ

Board of Trustees

Elected Trustees

Professor Amanda Broderick, Vice Chancellor, University of East London (Elected Chair) Professor Peter Bonfield OBE, Vice Chancellor, University of Westminster (Elected Vice Chair) Professor Jenny Higham, Vice Chancellor, St George’s, University of London (to 31 July 2024) Andy Cook, Vice Chancellor, Ravensbourne University London Professor Frances Comer OBE, Warden, Goldsmiths, University of London Professor Dave Phoenix OBE, Vice Chancellor, London South Bank University Professor Jean-Noël Ezingeard, Vice Chancellor, University of Roehampton Professor Andrew Jones, Vice Chancellor, Brunel University of London

Co-opted Trustees

Professor Anthony Bowne, Principal, Trinity Laban Conservatoire of Music and Dance Professor Wendy Thomson CBE, Vice Chancellor, University of London

Observer

Mark Hilton, Policy Delivery Director, BusinessLDN

London Higher Senior Management Team

Diana Beech Jenny Wetherill Chief Opera�ng Officer (resigned August 2024) Gemma Adlington Head of Opera�ons (appointed September 2024) Richard Boffey Head of Access HE Mark Corbe� Head of Policy and Networks Jolanta Edwards Director of Strategy Anna Zvagule Head of Communica�ons

Auditors: Peters Elsworthy and Moore Salisbury House Sta�on Road Cambridge CB1 2LA

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London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

Bankers:

Royal Bank of Scotland Group (Educa�on Sector) Commercial Banking 3[rd] Floor, Cavell House 21 Charing Cross Road London WC2H 0NN

Company Secretary Gemma Adlington

Objec�ves and Ac�vi�es

Our vision: At London Higher, we seek to represent the full diversity of higher educa�on in London. We support our members by advoca�ng for and on behalf of London’s universi�es and higher educa�on colleges. It is our aim to become a well-respected ‘go to’ representa�ve body for higher educa�on in London to ensure the success of all our members.

Our mission: We help our members to address the opportuni�es and challenges that arise from our shared loca�on in London. We assist and support our members to achieve their goals, whilst being a collec�ve voice for their interests, locally and na�onally. We influence and work with a wide range of stakeholders and networks as a trusted, non-par�san and professional partner.

At London Higher, we support our members by advoca�ng for and on behalf of London’s higher educa�on sector. We act:

Annual reports and plans: Business Strategy and an Opera�onal plan detailing how we aim to achieve them that year. These documents are voted on at our AGM and uploaded to our website.

Our principles will determine our priori�es over this period. These are based on the London HE sector being:

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London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

the Chari�es Commission guidance on public benefit. We engage with more than 70 unique ins�tu�ons across our three divisions. We benefit them in various ways as will be shown below, but in all cases our test is whether an ac�on of ours will result in universi�es 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 educa�on and place, all of whom gain benefit from an effec�ve and full higher educa�on experience.

Achievements and Performance

For 25 years London Higher has been working with universi�es and higher educa�on colleges in London. Our mission is to support universi�es in mee�ng the challenges and opportuni�es of providing diverse higher educa�on in London. We do this by:

    1. assessing the impact, extent or volume of such challenges or opportuni�es on our members and the wider public, through our surveys and analysis of HE data;

  2. designing appropriate measures to address the challenges or opportuni�es though our projects, collabora�ons, advocacy work; and

  3. sharing this (and other) informa�on with our members and the wider policy environment to promote our work, including though our events. This cycle of engagement-ac�on-promo�on 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 reputa�on for advoca�ng and promo�ng London’s HEIs and suppor�ng our members in their responses to the challenges and opportuni�es that have emerged.

Our Powering London report published in June 2023 provided the underlying theme for the year, highligh�ng how London’s higher educa�on ins�tu�ons power London through our four pillars. We held a major networking event for 200 people connec�ng our ins�tu�ons with London businesses, big and small, aiming to kick off be�er collabora�ve working between universi�es and industry.

Our highlights for the year have included:

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London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

In addi�on, we undertook a ra� of work focusing on the priority areas from our opera�onal plan, based on London HE being:

A local asset

Overall impact: helping local communi�es in London with the social mobility of their most disadvantaged pupils, and increasing the HE progression rates within boroughs.

A global magnet

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London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

Overall impact: using all the above ac�vity, in conjunc�on with other mee�ngs with senior policymakers to influence the reten�on of the Graduate Route visa in May/June of this year.

A source of skills and jobs

Overall impact: the #StudyNursingLondon campaign reached over 2 million people across digital channels, enabling informa�on about nursing and other allied health professional courses to be delivered to prospec�ve students, as a result, encouraging more people to consider these professions and hopefully in the longer term, enabling numbers on these courses in London to rise again.

An engine for innova�on and enterprise

Overall impact: London Higher’s “Powering London” event series brought together universi�es and business in a way that hasn’t been done before, allowing be�er collabora�ons to be fostered between the two sectors, and

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London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

leading to be�er alignment on a range of issues related to higher educa�on, from interna�onal to business and enterprise.

organisa�on, both within the higher educa�on sector and in London, such as:

Structure, Governance and Management

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

Governing document: The company was established under Memorandum and Ar�cles of Associa�on dated 6 March 2006 which establish the objects and powers of the charitable company. In addi�on, it operates under a Members’ Agreement with each member that sets out the nature of the rela�onship between the company and each member.

Trustees: At date of accounts London Higher has two co-opted Trustees. In addi�on, London Higher Trustees invite observers from a limited number of key stakeholder organisa�ons. London Higher has one observer at this �me.

Trustee induc�on & training: Member Trustees are familiar with the prac�cal elements of the company as higher educa�on ins�tu�ons (HEIs) have charitable status as providers of educa�on. Each new Trustee is directed to guidance by the Chari�es Commission and all relevant Governance documents rela�ng to the company. New Trustees are given a briefing on London Higher.

Sub commi�ees: London Higher’s Board of Trustees has three sub commi�ees:

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London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

Structure of the Execu�ve: The Execu�ve is divided into three business divisions. These are listed below together with their primary func�ons. Each division is a separate cost centre and has its own Head of Division/ member of Senior Management Team (SMT) with strategic oversight who reports directly to the Chief Execu�ve. In addi�on, the Chief Execu�ve and Heads of Division meet as an SMT every week.

Business Divisions of London Higher:

Decision making protocols : The overall strategic direc�on of London Higher is set out in a Business Plan that is drawn up by the Execu�ve, approved by the Board of Trustees and agreed by the company members. Each year an Opera�onal Plan is drawn up with the same approvals. The annual opera�onal plan sets out the specific ini�a�ves for the year together with expected costs. Heads of Division are responsible for delivering these ini�a�ves on a day-to-day basis. The SMT monitors progress, and each quarter Trustees are given a wri�en progress report. In addi�on, any expenditure or income over £50,000, whether agreed in the opera�onal plan or not, must be approved by the Board, and London Higher will seek support from the Finance Commi�ee for any expenditure or income over £10,000.

Higher educa�on ins�tu�ons (HEIs): HEIs in London are our company members. Members are required to submit an applica�on to be considered for membership. This applica�on is reviewed against members criteria by the Membership Commi�ee who advise the Board of Trustees on whether to accept or reject the applica�on. In the Members’ Agreement members devolve to the London Higher Board of Trustees the power to make decisions on their behalf in the collec�ve interests of the group, or parts thereof. This authority is safeguarded by advisory groups which comprise senior representa�ves from the membership group. Following the departure of our board representa�ve for the healthcare and medical sphere, we plan to review the advisory structure for our healthcare and medical groups

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London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

Centres membership: London Higher also recognises an addi�onal partnership category (dis�nct from members) which includes higher educa�on providers based outside London who have opened centres in London.

Related par�es: The policy landscape for higher educa�on is currently set by the Department for Educa�on and the Department for Science, Innova�on and Technology (with some input from the Home Office, the Department for Health and Social Care, the Department for Culture, Media and Sport and the Department for Business and Trade 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 na�onal Government level and to develop and run HE collabora�ons that reflect na�onal policy and that which are tailored to the London region and the unique nature of the London group of HEIs. Addi�onally, the Mayor of London and the Greater London Authority (GLA) have interests in higher educa�on as it pertains to the capital. London Higher maintains links with each.

Measuring our success: We measure our success via four key objec�ves: member value, crea�on of the ‘London Voice’, opera�onal effec�veness, and member engagement. Specifically, these objec�ves are mapped via the following metrics:

Member value Crea�on of the ‘London
Voice’		 Opera�onal efec�veness Member engagement
Member numbers Number and reach of
publica�ons and
campaigns		 Staf costs Numbers a�ending
networks
Number of blogs, social
media men�ons and
quotes		 External men�ons of
London Higher		 Number of opera�ng days
covered by reserves		 Event a�endance
Number of third party
sources men�oning
London Higher		 Number of external
organisa�ons engaging
with LH ac�vi�es		 Surplus over budget Number of members
par�cipa�ng in LH
consulta�ons and reports

Plans for 2024-5

The need to support, promote and advocate for London higher educa�on has never been clearer. Taking each of our priori�es in turn:

A local asset

We con�nue to believe in the importance of social mobility for the individual, the economy and society. Whilst London’s record of widening par�cipa�on to higher educa�on is one to be proud of, the capital is nonetheless home to some of the most socio-economically deprived areas in the country and educa�onal inequali�es persist. This makes the work of our AccessHE division, which supports the professionalisa�on of widening par�cipa�on prac�ce in London HE, and collabora�on with schools, local authori�es and underrepresented student groups, all the more important.

The regulatory framework for equality of opportunity in English higher educa�on now centres around an Equality of Opportunity Risk Register (EORR), to which providers must give regard in their widening par�cipa�on ac�vi�es. To support our members in working with the EORR, we are planning some changes to our membership offer this year. We will streamline our prac��oner networks (our Ac�on Forums), so we are able to concentrate in detail on relevant EORR topics and groups. Underpinning this will be the student voice, which will be heard via a Young

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London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

Londoners Forum that we are in the process of se�ng up. This will enable consulta�on with students aged 18-24 and facilitate meaningful co-crea�on of widening par�cipa�on ac�vity.

We will con�nue to deliver on our Uni Connect responsibili�es, but this will undergo change. In February 2024 the Government published an independent review of the Uni Connect programme, which restated the valuable nature of the work and need for longer-term funding of it. In the immediate term, however, the programme funding faces considerable pressures, as the Government recently announced a one-third funding cut for Uni Connect in 202425. The funding alloca�on that London Higher receives to deliver our Uni Connect ac�vi�es in London will reduce accordingly. In response, we are seeking greater join-up with the other partners in the London Uni Connect consor�um to achieve efficiencies in how we deliver our collabora�ve outreach and a�ainment raising projects. We will scale back the collabora�ve infrastructure we currently provide across 19 local authori�es to focus on priority local areas where need is greatest and where our members are best placed to offer support.

Last year we held a conference in November for members of our AccessHE division on Collabora�on Ma�ers. Given the success of the conference we want to make this a regular event and are planning another conference in 2024-25.

We will con�nue to champion and support London’s HEIs as civic ins�tu�ons. The Civic Network will con�nue to play an ac�ve part in coordina�ng civic engagement and impact across the London higher educa�on sector. We shall also con�nue to update our ‘living’ London Higher Civic Map with new projects and ini�a�ves as they emerge from our members.

A global magnet

It has been disheartening this year to see some mixed messages around London and changes to the interna�onal student visa posi�on and the related health surcharge, on which we have advocated �relessly and seen as a result, no change being currently made to the Graduate Route.

The successes of London’s higher educa�on sector are widely recognised and it is important that London con�nues to be seen as an a�rac�ve des�na�on for educa�on and investment. We have been engaging with government departments and London stakeholders to set out the case and importance of interna�onal students and the value they bring to the capital and country.

We will con�nue to highlight how interna�onal students are good news for the economy and bring immense value, both economically and socially. We want London’s HEIs to be valued overseas and to showcase them proudly na�onally and interna�onally.

To demonstrate how welcoming London is, and to counteract some of the nega�ve rhetoric that has been developing around interna�onal students of late, we have relaunched the “Study London” campaign. This showcases the a�rac�veness of London as an interna�onal study des�na�on and aims to shore up interest from poten�al applicants. Work will con�nue on this campaign over the course of the next year.

An engine for innova�on and enterprise

Our ‘Powering London’ report, developed in discussion with the KPMG London Leaders’ Circle, celebrated the enormous contribu�on that London’s universi�es and businesses make to the London region and the country. It highlights the world-class teaching and learning opportuni�es that ensure a diverse and talented workforce, recognises the value of research and innova�on, and sets out why London is an a�rac�ve des�na�on for people and investment. We will build on this.

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London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

ins�tu�ons, businesses, and investors. Theme-specific mee�ngs have also taken place around the crea�ve industries, ar�ficial intelligence, London’s public sector workforce and interna�onal student recruitment. We will con�nue this work, with further roundtables in the pipeline including on health.

A source of skills and jobs

We will con�nue to develop the Crea�veLDN website and resources for students at pre-university, university and post-university level who are looking to get into the crea�ve industries

With the publica�on of the NHS Long Term Workforce Plan, our healthcare sector has been discussing shor�alls in student numbers to fulfil the ambi�ous targets set out in the document. Our #StudyNursingLondon campaign will con�nue into 2024-25 with London universi�es developing their own content focusing on the benefits of healthcare degrees and highligh�ng financial assistance and career pathways.

The campaign is also pilo�ng an outreach component in a London school, to see what pupils need to know about to help them decide what subjects and careers may be suitable for them if they wish to enter into the healthcare service. Both elements of the campaign should provide us with valuable insights on what might be impac�ul should we wish to extend the campaign further.

We will work with members to think about skills, business need and how to bridge gaps and misconcep�ons.

We will con�nue to ensure we are visible and vocal and seek ways to understand our impact. For this coming year par�cularly, we believe we need to maintain ac�ve engagement in the poli�cal scene, locally and na�onally, formally and informally. We know that our responses to consulta�ons and engagement with government, the GLA, the Office for Students and others has been successful in se�ng out issues and influencing the agenda, and we will wish to con�nue this over the coming year, including suppor�ng any changes from local or na�onal elec�on.

To support this work, and as men�oned in our three-year plan, we will con�nue to consider how to create greater financial sustainability for London Higher as an organisa�on. We will also run a survey which will help us understand how members see us and our impact and influence.

budgeted deficit of £70,423 or 6% of income. The budget was presented to the Finance Commi�ee of the Board in June 2024 and approved by the Board in July 2024.

In the coming year we plan to:

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London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

Financial Review

administra�on.

Total income 2023-2024 was £1,351,945, an increase of £266,578, 24%, compared to 2022-2023 (£1,085,367).

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London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

Reserves Policy: Total funds at 31 July 2024 were £815,740 (2022-23: £756,844). Of the total funds, £18,605 (2022-23: £25,675) were represented by restricted funds and £797,135 (2022-223: £731,169) by unrestricted funds. Free Reserves (i.e. unrestricted funds excluding fixed assets and amounts designated) stood at £790,636 (2022-23: £726,291) at 31 July 2024.

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 administra�on and project expenditure. This applies to all divisions. This amounts to a total of £259,861-£482,621, and so the current level of Free Reserves of £790,636 exceeds this criteria. Given financial instabili�es within the sector, trustees are comfortable with retaining a higher level of reserves in the short-term, though thought will be given in Spring 2025 to projects that can be implemented in order to reduce the reserves over the course of the next year.

The Net Book Value of Fixed assets was £6,499 and London Higher has no other Designated Reserves as of 31 July 2024.

Risk management: London Higher maintains a risk register which ranks the key risks to which the organisa�on 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 mee�ngs. The Trustees are sa�sfied that systems have been developed and are in place to mi�gate iden�fied risks to an acceptable level.

The highest rated risks to the organisa�on are noted to be:

Risk Management Control
Removal of grant funding
Look for alterna�ve, longer-term, sources for
funding where possible.

Reduce overall reliance on project funds for
payroll for those staf members not directly
working on the project.

Careful contract management. Maintain good
working rela�onship with funders including
fostering a culture of early disclosure
concerning problems.

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London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024


Prepare early for loss of project funding.
Including communica�ng to staf and
preparing op�ons for redirec�ng resources.

Manage supplier contracts to achieve
fexibility.

Keep a close eye on unrestricted reserves.

Prepare a conserva�ve budget.
Changes in government policy
Con�nuing ac�vity in campaigning and
infuencing sphere to represent the views of
our members

Remunera�on: adjustment. The educa�on sector average COL and financial situa�on of the organisa�on are considered when making this decision. COL increases are proposed in the budget which the Board approves, therefore the increases are considered managerial decisions and are not reported to the Remunera�on Commi�ee. The Remunera�on Commi�ee sets the remunera�on 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 �me to �me, 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.

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 par�es and as a result the organisa�on is not registered with the fundraising regulator and received no fundraising complaints in the year.

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London Higher Trustees Annual Report and Financial Statements For the year ended 31 July 2024

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

resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the Trustees are required to:

comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and

In so far as the Trustees are aware:

The Trustees have prepared this report in accordance with the Special Provisions of Part 15 of the Companies Act

Approved by the London Higher Board of Trustees on 4 February 2025 and signed on its behalf by:

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

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LONDON HIGHER (A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONDON HIGHER

OPINION

We have audited the financial statements of London Higher (the 'charitable charity') for the year ended 31 July 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

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LONDON HIGHER (A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONDON HIGHER (CONTINUED)

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

OPINION 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 our 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' Report.

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

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LONDON HIGHER

(A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONDON HIGHER (CONTINUED)

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustees' Responsibilities Statement, 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:

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LONDON HIGHER

(A Company Limited by Guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LONDON HIGHER (CONTINUED)

regulations.

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities, including fraud and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Nikki Loan (Senior Statutory Auditor) for and on behalf of Peters Elworthy & Moore Chartered Accountants Statutory Auditor Salisbury House Station Road Cambridge CB1 2LA

Date: 05 February 2025

20

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 JULY 2024

Note
INCOME FROM:
Donations and legacies
4
Charitable activities
5
Investments
6
TOTAL INCOME
EXPENDITURE ON:
Charitable activities
7
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD		 Restricted
funds
2024
£
-
363,778
-
363,778
370,848
370,848
(7,070)
25,675
(7,070)
18,605		 Unrestricted
funds
2024
£
2,728
964,211
21,228
988,167
922,201
922,201
65,966
731,169
65,966
797,135		 Total
funds
2024
£
2,728
1,327,989
21,228
1,351,945
1,293,049
1,293,049
58,896
756,844
58,896
815,740		 Total
funds
2023
£
-
1,079,415
5,952
1,085,367
1,062,078
1,062,078
23,289
733,555
23,289
756,844

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 8 to 25 form part of these financial statements.

21

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER (A Company Limited by Guarantee) REGISTERED NUMBER: 5731255

BALANCE SHEET AS AT 31 JULY 2024

2024 2023
Note £ £
FIXED ASSETS
Tangible assets 13 6,499 4,877
CURRENT ASSETS
Debtors 14 32,942 41,849
Investments 15 536,378 210,029
Cash at bank and in hand 296,244 556,026
865,564 807,904
Creditors: amounts falling due within one
year 16 (56,323) (55,937)
NET CURRENT ASSETS 809,241 751,967
TOTAL NET ASSETS 815,740 756,844
CHARITY FUNDS
Restricted funds 17 18,605 25,675
Unrestricted funds 17 797,135 731,169
TOTAL FUNDS 815,740 756,844

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Professor Amanda Broderick Trustee

Date: 4 February 2025

The notes on pages 8 to 25 form part of these financial statements.

22

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2024

Note
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities
19
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Current investments
NET CASH USED IN INVESTING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
20		 2024
£
57,210
15,239
(5,882)
(326,349)
(316,992)
(259,782)
556,026
296,244		 2023
£
(85,535)
5,952
(835)
(210,029)
(204,912)
(290,447)
846,473
556,026

The notes on pages 8 to 25 form part of these financial statements

23

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

1. GENERAL INFORMATION

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). Its registered office is disclosed on page 1.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

London Higher 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.

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

2.2 GOING CONCERN

During 2023-2024, the Charity engaged with an increasing number of members as well as boosting its membership presence in LH Centers (University based outside London but with London campus). However, the pressure on universities' budgets means that the strategy of London Higher is to look to boost non-membership income. During 2023-2024, London Higher saw increased project income and sponsorship to deliver an increase in non-membership income. These have further raised London Higher's profile within the sector. This should help protect the membership income as members of London Higher see the benefit of retaining their membership.

To take a conservative approach to the new year, the 2024-2025 budget has included a net loss of members. Alongside a strategic review of the non-membership income streams, including a review of the VAT status of London Higher and a tight control of costs means that London Higher can continue to operate as a going concern.

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 Charity assets, the reserves levels and future plans gives Trustees confidence the Charity remains a going concern for the foreseeable future.

24

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

2. ACCOUNTING POLICIES (CONTINUED)

2.3 INCOME

All income is recognised once the charitable charity has entitlement to the income, it is probable that the 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. Where a grant agreement includes conditions, the income is only recognised when the condition is fulfilled.

Membership income is recognised over the period it relates.

Investment income relates to interest on bank balances and current asset investments, 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.

2.4 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:

Membership and charitable activity costs that are 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 directly 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 based of the proportion of time spent by staff on those activities.

2.5 TANGIBLE FIXED ASSETS AND DEPRECIATION

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:

25

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

(A Company Limited by Guarantee)

LONDON HIGHER

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

2. ACCOUNTING POLICIES (CONTINUED)

2.5 TANGIBLE FIXED ASSETS AND DEPRECIATION (CONTINUED)

The Charity’s capitalisation policy is for any items over £500.

2.6 CURRENT ASSET INVESTMENTS

Current asset investments are those which are held for resale or pending their sale and cash on deposit with a maturity date of less than one year held for short-term investment purposes rather than cashflow. Current asset investments are valued at fair value unless they qualify as basic financial assets.

2.7 OPERATING LEASES

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight-line basis over the lease term.

2.8 PENSIONS

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.

2.9 FINANCIAL INSTRUMENTS

The charitable charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.10 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.

26

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

2. ACCOUNTING POLICIES (CONTINUED)

2.11 DEBTORS

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

2.12 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.13 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charitable charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.14 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charitable charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charitable charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT

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 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:

USS Pension

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-

27

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

3. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT (CONTINUED)

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 multi employer scheme.

No deficit recovery plan was required from the 2023 valuation because the scheme was in surplus. Changes to contribution rates were implemented from 1 January 2024 and from that date the Charity was no longer required to make deficit recovery contributions. Due to the Charity not being able to reliably measure the deficit contributions in previous years, no liability was recognised in 2023 and therefore no provision is required to be released.

4. INCOME FROM DONATIONS AND LEGACIES

Unrestricted Total Total
funds funds funds
2024 2024 2023
£ £ £
Donations 2,728 2,728 -

The donation above relates to an in kind benefit for venue hire. An equivalent cost has also been recognised.

5. INCOME FROM CHARITABLE ACTIVITIES

Membership Contributions: London Higher
Membership Contributions: London Medicine
& Healthcare
Membership Contributions: London Centres
Membership Contributions: AccessHE
Grants
Project & event Income
TOTAL 2023		 Restricted
funds
2024
Unrestricted
funds
2024
£
£
-
548,419
-
106,600
-
90,125
-
130,244
353,038
-
10,740
88,823
363,778
964,211
258,498
820,917		 Total
funds
2024
£
548,419
106,600
90,125
130,244
353,038
99,563
1,327,989
1,079,415		 Total
funds
2023
£
487,768
96,500
51,929
121,102
258,498
63,618
1,079,415

28

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

6. INVESTMENT INCOME

Unrestricted
funds
2024
£
Bank interest
21,228
TOTAL 2023
5,952		 Total
funds
2024
£
21,228
5,952		 Total
funds
2023
£
5,952

7. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Summary by fund type

London Higher
London Medicine & Healthcare
AccessHE
Uni Connect
Mental Health
Creative Arts
TOTAL 2023		 Restricted
funds
2024
Unrestricted
funds
2024
£
£
-
689,492
-
90,826
-
141,883
252,463
-
11,208
-
107,177
-
370,848
922,201
259,999
802,079		 Total
2024
£
689,492
90,826
141,883
252,463
11,208
107,177
1,293,049
1,062,078		 Total
2023
£
558,455
93,197
150,427
244,162
15,837
-
1,062,078

29

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

8. ANALYSIS OF EXPENDITURE BY ACTIVITIES

London Higher
London Medicine & Healthcare
AccessHE
Uni Connect
Mental Health
Creative Arts
TOTAL 2023
ANALYSIS OF SUPPORT COSTS
Occupancy Cost
Administration Cost
Human Resource Cost
Depreciation
Governance (Note 9)
Strategy Development
Banking Charges		 Activities
undertaken
directly
2024
£
576,325
80,830
130,883
237,463
11,208
100,177
1,136,886
954,346		 Support
costs
2024
£
113,167
9,996
11,000
15,000
-
7,000
156,163
107,732		 Total
funds
2024
£
689,492
90,826
141,883
252,463
11,208
107,177
1,293,049
1,062,078
Total
funds
2024
£
57,546
27,423
40,466
4,260
23,889
1,075
1,504
156,163		 Total
funds
2023
£
558,455
93,197
150,427
244,162
15,837
-
1,062,078
Total
funds
2023
£
54,072
14,092
12,330
4,847
20,151
1,140
1,100
107,732

30

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

9. GOVERNANCE COSTS

Audit fee (including VAT)
Accountancy fee
Trustees' meetings
Companies House filing
10.
AUDITOR'S REMUNERATION
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts (including VAT)
Fees payable to the charitable charity's auditor in respect of:
Preparation of the financial statements
11.
STAFF COSTS
Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2024
£
20,320
3,000
556
13
23,889
2024
£
20,320
3,000
2024
£
660,331
61,741
103,367
825,439		 2023
£
14,600
5,400
138
13
20,151
2023
£
14,600
5,400
2023
£
620,054
53,671
102,348
776,073

During the year, no redundancy or termination payments were made (2023: £3,997).

31

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

11. STAFF COSTS (CONTINUED)

The average number of persons employed by the charitable charity during the year was as follows:

London Higher
Creative Arts
AccessHE
Uni Connect		 2024
No.
11
1
2
3
17		 2023
No.
9
-
2
4
15

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2024 2023
No. No.
In the band £60,001 - £70,000 1 -
In the band £90,001 - £100,000 - 1
In the band £100,001 - £110,000 1 -

Pension contributions payable by the Charity for higher paid employees in the year were £35,789 (2023: £20,141)

The key management personnel are defined as the CEO, COO, Head of AccessHE, Head of Policy, Head of Communications (for 2023-24 only) and Director of Strategy of which the total employee benefits in aggregate for the year were £468,576 (2023 restated to include employers NI and pension costs: £313,656).

12. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2023 - £NIL).

During the year ended 31 July 2024, no Trustee expenses have been incurred (2023 - £NIL).

32

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

13. TANGIBLE FIXED ASSETS

COST
At 1 August 2023
Additions
Disposals
At 31 July 2024
DEPRECIATION
At 1 August 2023
Charge for the year
On disposals
At 31 July 2024
NET BOOK VALUE
At 31 July 2024
At 31 July 2023
14.
DEBTORS
DUE WITHIN ONE YEAR
Trade debtors
Prepayments and accrued income		 2024
£
11,170
21,772
32,942		 Fixtures,
fittings and
equipment
£
21,408
5,882
(5,898)
21,392
16,531
4,260
(5,898)
14,893
6,499
4,877
2023
£
9,040
32,809
41,849

33

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

15. CURRENT ASSET INVESTMENTS

Restated
2024 2023
£ £
Short-term one-year cash bond / 95day access account 536,378 210,029

The one-year bond (£324,590) attracts interest of 4.5% and matures in February 2025. The remainder of the balance relates to a liquidity manager 95 day account. The equivalent amount in this account in thepr ior year has been reclassified from cash.

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Other creditors
Accruals and deferred income
Deferred income at 1 August 2023
Resources deferred during the year
Amounts released from previous periods		 2024
£
18,535
2,559
35,229
56,323
2024
£
6,910
6,609
(6,910)
6,609		 2023
£
28,133
894
26,910
55,937
2023
£
54,857
6,910
(54,857)
6,910

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

34

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

17.
STATEMENT OF FUNDS
STATEMENT OF FUNDS - CURRENT YEAR
Balance at 1
August 2023
£
UNRESTRICTED FUNDS
DESIGNATED FUNDS
Fixed asset fund
4,878
GENERAL FUNDS
General Fund
726,291
TOTAL UNRESTRICTED
FUNDS
731,169
RESTRICTED FUNDS
Mental Health
11,208
Uni Connect
14,467
Creative Arts
-
25,675
TOTAL OF FUNDS
756,844		 Income
£
-
988,167
988,167
-
259,258
104,520
363,778
1,351,945		 Expenditure
£
-
(922,201)
(922,201)
(11,208)
(252,463)
(107,177)
(370,848)
(1,293,049)		 Transfers
in/out
£
Balance at
31 July 2024
£
1,621
6,499
(1,621)
790,636
-
797,135
-
-
-
21,262
-
(2,657)
-
18,605
-
815,740

35

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

17. STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED FUNDS
DESIGNATED FUNDS
Fixed asset fund
GENERAL FUNDS
General Fund
TOTAL UNRESTRICTED
FUNDS
RESTRICTED FUNDS
Mental Health
Uni Connect
TOTAL OF FUNDS		 Balance at
1 August
2022
£
8,890
697,489
706,379
27,045
131
27,176
733,555		 Income
£
-
826,869
826,869
-
258,498
258,498
1,085,367		 Expenditure
£
-
(802,079)
(802,079)
(15,837)
(244,162)
(259,999)
(1,062,078)		 Transfers
in/out
£
(4,012)
4,012
-
-
-
-
-		 Balance at
31 July 2023
£
4,878
726,291
731,169
11,208
14,467
25,675
756,844

36

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

17. STATEMENT OF FUNDS (CONTINUED)

Purpose of funds:

The agreement includes some matched funding to be provided by the Charity or others. The Charity’s matched funding is included in unrestricted expenditure. Any matched funding provided by a third party will be included in the restricted income and expenditure of the fund.

The deficit carry forward will be covered by future funding instalments.

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT PERIOD

Tangible fixed assets
Current assets
Creditors due within one year
TOTAL		 Restricted
funds
2024
Unrestricted
funds
2024
£
£
-
6,499
31,057
834,507
(12,452)
(43,871)
18,605
797,135		 Total
funds
2024
£
6,499
865,564
(56,323)
815,740

37

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED)

ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR PERIOD

Tangible fixed assets
Current assets
Creditors due within one year
TOTAL		 Restricted
funds
2023
£
-
39,331
(13,656)
25,675		 Unrestricted
funds
2023
£
4,877
768,573
(42,281)
731,169		 Total
funds
2023
£
4,877
807,904
(55,937)
756,844
19.
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW
ACTIVITIES
Net income for the period (as per Statement of Financial Activities)
ADJUSTMENTS FOR:
Depreciation charges
Dividends, interests and rents from investments
Decrease/(increase) in debtors
Increase/(decrease) in creditors
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES
20.
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand		 FROM OPERATING
2024
2023
£
£
58,896
23,289
4,260
4,846
(21,228)
(5,952)
14,896
(4,031)
386
(103,687)
57,210
(85,535)
2024
2023
£
£
296,244
556,026

38

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

21. ANALYSIS OF CHANGES IN NET DEBT

Cash at bank and in hand
Liquid investments		 At 1 August
2023
£
556,026
210,029
766,055		 Cash flows
£
(259,782)
326,349
66,567		 At 31 July
2024
£
296,244
536,378
832,622

22. PENSION COMMITMENTS

The Charity 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 Charity 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.

A deficit recovery plan was put in place as part of the 2020 valuation, which required payment of 6.2% of salaries over the period 1 April 2022 until 31 March 2024, at which point the rate would increase to 6.3%. No deficit recovery plan was required under the 2023 valuation because the scheme was in surplus on a technical provisions basis. The institution was no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision to the profit and loss account.

The latest available complete actuarial valuation of the Retirement Income Builder is as at 31 March 2023 (the valuation date), which was carried out using the projected unit method.

Since the institution cannot identify its share of USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.

The 2023 valuation was the seventh 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 (the statutory funding objective). At the valuation date, the value of the assets of the scheme was £73.1 billion and the value of the scheme’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%

The key financial assumptions used in the 2023 valuation are described below.

Price inflation - consumer Prices Index (CPI)
RPI/CPI gap		 3.0% p.a (based on a long-term average
expected level of CPI, broadly consistent with
long-term market expectations)
1.0% p.a to 2023, reducing to 0.1%p.a from 2030

39

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

22. PENSION COMMITMENTS (CONTINUED)

Pension increases (subject to a floor of 0%) Benefits with no cap:
CPI assumption plus 3bps
Benefits subject to a “soft cap” of 5% (providing
inflationary increases up to 5%, and half of any
excess inflation over 5% up to a maximum of
10%):
CPI assumption minus 3bps
Discount rate (forward rates) Fixed interest gilt yield curve plus:
Pre-retirement: 2.5% p.a.
Post retirement: 0.9% p.a.

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 2023 actuarial valuation. The mortality assumptions used in these figures are as follows:

2023 valuation
Mortality base table 101% of S2PMA “light” for males and 95% of
S3PFA for females
Future improvements to mortality CMI 2021 with a smoothing parameter of 7.5, an
initial addition of 0.4% p.a., 10% w2020 and
w2021 parameters, and a long-term improvement
rate of 1.8% pa for males and 1.6% pa for
females

The current life expectancies on retirement at age 65 are:

2024 2023
Males currently aged 65 (years) 23.7 24.0
Females currently aged 65 (years) 25.6 25.6
Males currently aged 45 (years) 25.4 26.0
Females currently aged 45 (years) 27.2 27.4

40

Docusign Envelope ID: 9A4FBFC2-3112-451B-A3DC-B5F8E317905E

LONDON HIGHER

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024

23. OPERATING LEASE COMMITMENTS

At 31 July 2024 the charitable charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2024
£
50,400
65,865
116,265		 2023
£
50,400
116,265
166,665

The following lease payments have been recognised as an expense in the Statement of Financial Activities:

2024 2023
£ £
Operating lease rentals 50,400 50,400

24. RELATED PARTY TRANSACTIONS

The charitable charity has not entered into any related party transactions during the year, nor are there any outstanding balances owing between related parties and the charitable charity at 31 July 2024 (2023: no related party transactions or balances).

41