THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2025
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(A charity and a company limited by guarantee)
TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS
For the year ended 31 December 2025
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2025
| CONTENTS | |
|---|---|
| Page | |
| Chair's introduction | 3 |
| Report of the Trustees including the Strategic Report | 4 |
| Report of the independent auditor | 21 |
| Statement of financial activities | 26 |
| Balance sheet | 27 |
| Cash flow statement | 28 |
| Notes forming part of the financial statements | 29 |
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
CHAIR’S INTRODUCTION
It has again been a challenging year for students, and for the higher education sector. This challenge has been reflected in sustained demand for our service and against that backdrop, the OIA has continued to fulfil its role effectively, providing a valuable, independent route to redress and learning. We continued to focus on a service that students can access easily and experience as fair, responsive, and timely.
We also continued to share learning from complaints and to engage positively with students, their representative bodies, and higher education providers. Our influencing and outreach work grew in reach and sophistication, including a strong programme of online engagement. Accessibility remained central to our approach, and we further strengthened our equality, diversity and inclusion work, recognising the importance of understanding different student experiences, and ensuring our processes and communications are inclusive by design.
Within the wider regulatory and policy environment, we used our unique position as an independent ombuds service to keep students’ concerns in view, and to respond to emerging and developing issues across the sector, including ongoing developments in Wales. We also invested in the capabilities that underpin a high-quality service, including improvements to our reporting infrastructure and an ongoing review of how our casework systems support colleagues and service users.
Likewise, our financial position remained sound. We managed our resources effectively to support organisational priorities. During the year we also successfully delivered an office move, agreeing a ten-year lease and relocating in Spring 2025 to secure a high-quality working environment and long-term security without increasing costs.
These achievements are made possible by the commitment and skill of colleagues across the organisation and on the Board. We continued to build on staff feedback and to strengthen channels for employee voice. We are also fortunate to have an excellent staff team, jointly led by Ben Elger, Chief Executive, and Helen Megarry, Independent Adjudicator, and an effective Board.
I thank them all for their work and support throughout the year.
Sim Scavazza
Chair of the Board of Trustees and Directors
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
The Trustees, being also Directors of the charitable company, present their annual report together with the financial statements for the year ended 31 December 2025.
The report complies with the Charities Act 2011, and the Directors’ report as required by section 415 of the Companies Act 2006. The financial statements comply with the requirements of the Companies Act 2006, the charitable company’s Articles of Association and the Charities Statement of Recommended Practice (SORP FRS 102 effective 1 January 2019).
Objectives and activities
The OIA is the designated operator of the student complaints scheme in England and Wales established under the Higher Education Act 2004, and a charity registered in England and Wales.
Charitable purpose
The OIA’s charitable purpose is to advance education for public benefit through the independent review of student complaints in England and Wales and by using learning from complaints to help improve policies and practices.
Public benefit
The Trustees confirm that they have complied with their duty in the Charities Act 2011 to have due regard to the guidance issued by the Charity Commission on public benefit.
The OIA brings benefit to students, higher education providers, the higher education sector and the wider public as an independent Scheme funded by higher education providers (rather than directly by taxpayers) that can be accessed free of charge by virtually all higher education students.
Activities
The principal activity is the impartial review of student complaints and sharing learning from complaints to help improve policies and practices.
The OIA’s strategic priorities to fulfil our charitable purpose and work towards our vision that students are always treated fairly are set out in our strategy. Work undertaken during 2025 has led to the further development of our strategy that came into effect on 1 January 2025.
Detailed planning of the activities through which we advance our strategic priorities is undertaken each year and set out in an annual Operating Plan. Progress against the
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
annual Plan is then reported in an annual Operating Report. Both documents are published on our website. A summary of key areas is provided under Achievements and performance below. Further information about our activities each year is included in our main Annual Report.
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
STRATEGIC REPORT
Our Strategy
Our strategic purpose
To improve students’ experiences by resolving complaints fairly and independently and using the learning we gain to influence change.
Our objectives
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To be trusted (to deliver fair decisions, to treat everyone equitably, to improve students’ experiences, to listen and act independently and, to be reasonable); and to be valued (for our: expertise, integrity, and efficiency).
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To have impact so that the Sector is better at: handling complaints, and using learning from complaints and wider experience to bring improvements.
Our priorities
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Casework: To fundamentally review our casework process to ensure it has service users at its heart, is as efficient as possible and is focused on effective resolution and remedy.
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Stakeholder engagement: To increase the effectiveness of our influencing in support of our objectives.
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Strengthening our evidence base: To improve the quality of our evidence, both data and insight, to improve our organisational performance and effectiveness of influencing.
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Organisation and cultural development: To increase the effectiveness of the organisation, to build on and strengthen our one organisation approach, ensuring we can respond to the demands of the other priorities, and create an environment in which all our people can thrive.
Our values
Our values inform everything we do. We recruit people who share our values and are committed to our strategic purpose, and we reflect our values in our work. Our values are: integrity and independence, service ethos, quality, engagement, openness and accessibility, and equality and diversity.
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Operating Plan Staff objectives
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
Achievements and performance
The OIA advances education for the public benefit by providing an independent, impartial and expert review of student complaints in England and Wales, and by using what we learn to support fairer policies and practices across higher education. Our work benefits students directly through complaint review and remedy, and benefits providers, the higher education sector and the wider public by promoting learning, consistency, and improvement.
Our Scheme is independent and can be accessed by virtually all higher education students. As the Scheme is free to students, there is no financial barrier to bringing a complaint to the OIA, and it is designed so that legal representation is not needed. Students must normally complete their provider’s internal complaints or appeals procedures before bringing their case to the OIA.
When we uphold a complaint, we usually make recommendations for the provider to put things right for the student(s) through practical remedies and/or financial compensation, and we may also make good practice recommendations to support wider improvement.
In 2025, demand for our service reached a new high, continuing a sustained upward trend, reflecting both ongoing pressures across the sector and the increasingly important role of independent redress. We handled over 5,000 enquiries from students as well as resolving 3,950 complaints Our decisions continued to deliver meaningful outcomes for students: 20% of our decisions resulted in a favourable outcome for the student, with 50% recorded as not justified.
We remained focused on delivering a service that is timely, accessible and fair, and we continued to strengthen our proactive caseload management and process efficiency so that we could respond to rising volumes without compromising the quality or independence of our decisions.
Alongside this, we continued to refine our casework processes and the way we support students to use our service. We strengthened our approach to equality, diversity and inclusion, including reviewing accessibility and inclusion within our work, listening to staff and student experiences, and continuing to build the cultural competence that helps ensure students are communicated with and supported appropriately.
We also maintained a strong focus on learning and continuous improvement through proportionate quality assurance and by updating guidance and resources for casehandlers.
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
We invested further in our systems and evidence capability to support effective and efficient delivery. Two years after implementing Microsoft Dynamics as our case-handling system, we reviewed how well it supports our operational needs and the day-to-day experience of colleagues, using staff feedback to inform future improvements.
Our influencing and good practice work continued to grow in reach and impact. We translated learning from complaints into clearer insights, thematic analysis and practical tools, helping providers strengthen policies and processes and, where possible, prevent complaints arising.
During the year we delivered a substantial outreach programme, including webinars, discussion groups, and visits with providers and student representative bodies, as well as targeted engagement with both high-volume and lower-engagement members to better understand drivers of complaints and support improvement. We also published and consulted on new and developing areas of good practice, including work focused on harassment and sexual misconduct, and continued to contribute evidence-based perspectives across the regulatory and policy landscape in England and Wales.
We continued to work closely with partners and stakeholders across the sector, including government, regulators and sector bodies, reflecting our distinctive role as both an independent ombuds service and part of the wider higher education regulatory framework. We maintained a particular focus on Wales, engaging with Medr and the Welsh Government as the tertiary landscape evolves and preparations continue for potential changes to our remit and the complaints environment in further (as well as higher) Welsh education.
We also continued to develop as an organisation. We strengthened organisational effectiveness through work on leadership and management development, refreshed and made more consistent internal communication, continued development of employee voice, as well as further embedding our new governance arrangements, including recruitment to strengthen Board capability and perspectives.
Financially, our position remained sound. We managed resources effectively to support our strategic priorities. We maintained our unit cost per complaint below £1,700 while continuing to invest in the systems, people and ways of working that underpin a highquality, timely service.
In 2025 we also completed a planned office move, securing a long-term lease and moving into new premises in Spring 2025 without increasing costs, supporting an effective working environment for colleagues.
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
Our Operating Report for 2025 reports progress against our Operating Plan and sets out what we have done during the year to advance each strategic priority, covering both ongoing programmes of work and initiatives introduced in response to emerging challenges and opportunities.
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
Financial review
Principal funding sources
The OIA is funded by compulsory subscriptions payable by higher education providers. It does not undertake any additional fundraising activities.
Results for the year and financial position
The results for the year show total income of £9,134,724 (2024: £8,443,978) and a surplus on general reserves of £1,072,407 (2024: £880,949).
Income rose in 2025, with both the core and case elements of subscriptions being above budget, reflecting once again the continued growth in membership of the Scheme and the on-going and accelerating rise in the volume of complaints. Expenditure also rose, largely reflecting our increased caseload but mitigated by an ongoing focus on efficiency reflected in our strategic planning and demonstrated in the reduction in unit cost.
Subscriptions planning remained under close review with a move in the thresholds to control the rise in the case element and a freeze in core subscriptions for 2025 followed by a 1% increase for 2026.
Investment policy and performance
Funds surplus to short-term working capital requirements are placed in short-term deposits with appropriate UK financial institutions. The rate of interest received is regularly reviewed.
Principal risks and uncertainties
The Trustees have a risk management strategy which includes:
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An established Risk & Audit Committee which oversees the organisational approach to risk and the Risk Register
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Regular review of policies and developments relating to risk, including potential new risks, culminating in a designated meeting of the Risk & Audit Committee to fully review changes to the Register and a report on key developments to the Board.
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Designated responsibility for managing and monitoring key risks on the Register.
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An approach based on mitigating both the likelihood of risks occurring and the impact should they occur.
Risks associated with ensuring continuing efficiency and quality in decision making and maintaining the confidence of stakeholders remain strongly identified on the Risk Register.
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
In 2025 we proactively and successfully managed risks around the continuing increase in the number of complaints coming to us. We also continued to focus on working with other organisations with a role in the higher education regulatory landscape. Income has remained reliable despite the financial challenges in the higher education sector. Given strong organisational performance our strategic risk profile remained stable at the end of 2025.
Reserves policy
In 2025 we undertook a full review of our reserves planning using a zero- based method identifying the financial impact of key risks in addition to a smaller working capital element. This work was led by the Finance Committee and reported to the Board. Using this methodology our current reserves target is around £3,000,000. After the 2025 financial year are reserves are at £4,403,225 and this position was factored into the 2026 subscriptions and budgeting process and will continue to be taken into account in future years, with a view to bring reserves in line with the policy over the medium term.
Pensions
The charitable company participates in the Universities Superannuation Scheme (USS) pension scheme. 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 pension reserve was reduced to nil in the year ended 31 December 2022 as a result of the reduced employer contributions coming out of the 2020 actuarial valuation. Although this does not constitute a current financial risk given the nature of the USS pension scheme and the way the overall deficit is managed, we recognise that there is a significant degree of uncertainty over the medium- to long-term cost of membership of the pension scheme, both in cash terms and accounting non-cash terms. Given the uncertainty of current and future economic conditions, even following changes to the scheme over a number of years there remains a level of risk of larger fluctuations and changing contribution rates in the future. We continue to carefully monitor the situation mindful of the need to be able to meet any increased contribution costs out of operational cash flows.
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
Plan for future periods
In 2025 we launched our new strategy, centred on two long-term organisational objectives and four strategic priorities. Our Operating Plan for 2026 sets out what we will do this year to take forward each area of that strategy, and what we intend to have achieved by the time we reach 2027. It includes both ongoing areas of work and new initiatives within the strategic priorities, with a particular focus in 2026 on moving from review into delivery and making a visible difference to the way we work.
The substantial and evolving challenges facing students and providers will remain a key context for our work in 2026, including financial pressures, rising costs of living, increasing complexity in student need, and continuing uncertainty across the sector.
The Plan reflects this context and the further developments we expect across all aspects of our work, including continued modernisation of our casework processes and our approach to early resolution. It also reflects our continued engagement with the developing tertiary landscape in Wales, as we work with the Welsh Government and Medr and begin the process of expanding our service in the Welsh context.
Alongside responding to sustained growth in the volume and complexity of complaints, we will continue to progress our good practice and outreach work and contribute to the wider regulatory framework towards our vision that students are always treated fairly.
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
Structure, governance and management
The OIA is a charitable company limited by guarantee. It was established under a Memorandum of Association and is governed under its Articles of Association.
The Board
Throughout 2025, we continued the implementation of our new governance arrangements. The principles that underpin the revised governance structure were carefully considered and we preserved the valued involvement of sector and student-led organisations whilst continuing to safeguard our independence and ensuring our arrangements have the confidence of all our stakeholders. Our governance reflects our current context and is flexible enough to adapt to the future evolution of the sector.
We kept in mind the codified expectation for effectiveness of the governance of charities, including in relation to Board size, and expectations of us as an ombuds scheme. Under the revised arrangements, all new Trustees have been appointed through an open recruitment process within a framework that sets out the skills, experience and perspectives required to achieve a balanced, independent, and effective Board.
The Board comprises 13 members, all of whom are non-executive Directors and Trustees. There are not less than three Directors with student perspective, not less than two Directors with English sector perspective and two Directors with Welsh sector perspective and not less than four Directors with lay perspective.
The Board is responsible for the strategic direction of the OIA, its funding, and development and the oversight of its performance. It meets at least four times each year. It has established four standing committees, Finance, Risk & Audit, Nominations & Governance, and People & Remuneration. All standing committees are formally constituted with terms of reference and include Trustees.
The Board delegates aspects of some of its functions and decision-making to its committees and to the executive. It has a scheme of delegation which identifies areas of responsibility, and the key committees and roles involved. Responsibilities are set out in more detail in documents such as committee terms of reference and senior executive job descriptions.
New Trustees are provided with a Handbook giving guidance on their role and expectations of them as Trustees and are signposted to Charity Commission guidance for Trustees. Induction covers the role and responsibilities of Trustees, strategic considerations, complaints handling processes, and other key aspects of OIA work.
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
Additionally, there are ongoing opportunities for development, for example through focused conversations with fellow Board members, invited speakers, and opportunities to attend committee meetings as an observer.
Key management remuneration
The pay of the Senior Leadership Team is set and reviewed by the People & Remuneration Committee of the Board of Directors. In 2025, the Board adopted a Very Senior Manager Framework for agreeing remuneration of its Senior Leaders, taking account of performance and market conditions. Benchmarking exercises are undertaken regularly, sometimes with external support, and have previously included analysis from the higher education, ombuds and charitable sectors.
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
Reference and administrative details
The Office of the Independent Adjudicator for Higher Education is a charitable company limited by guarantee, incorporated (England & Wales) on 7 July 2003 and registered as a charity on 11 April 2011.
COMPANY NUMBER: CHARITY NUMBER: 1141289 REGISTERED OFFICE Block D AND ADDRESS: Apex Plaza Reading, RG1 9QU
04823842 (England and Wales)
TRUSTEES / DIRECTORS:
The Trustees of the charity and Directors of the charitable company, who served throughout 2025 unless otherwise stated and were members of the Board on 31 December 2025:
Lay Trustees/Directors
S M T Scavazza (Chair) M S Kirke (Deputy Chair) A F Chandler N R Flint J N Rees
Trustees/Directors with a sector perspective
Professor A D Fitt (until 31 December 2024) English sector Dr W V Finlay English sector Professor Shân Wareing (from 1 May 2025) English sector Professor Osama Khan (from 1 May 2025) English sector Dr Gwawr Taylor (from 1 May 2025) Welsh sector Professor Rachael Langford (from 1 May 2025) Welsh sector
Trustees/Directors with a student perspective
A Adebisi A Stanley S J Williams
Trustees/Directors are appointed by the Board of Trustees. They are normally appointed for a term of three years and serve up to two terms. The Board may decide to extend a
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
Trustee’s period of service up to a maximum of nine consecutive years.
SENIOR LEADERSHIP TEAM: B P Elger - Chief Executive H M Megarry - Independent Adjudicator
PROFESSIONAL ADVISERS
BANKERS:
AUDITORS:
HSBC UHY Ross Brooke 26 Broad Street Suite I Reading RG1 2BU Windrush Court Abingdon Business Park OX14 1SY
SOLICITORS: ACCOUNTANTS: Field Seymour Parkes BDO LLP 1 London Street R+, 2 Blagrave Street Reading RG1 4QW Reading RG1 1AZ
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
Charity Governance Code
The OIA is committed to the seven principles identified in the Code and follows or is working towards recommended practice in almost all areas.
1. Organisational purpose
The OIA has a strong organisational purpose. It is clearly expressed in our strategic documents and is kept under review as part of ongoing strategic planning to make sure that it remains relevant in the evolving higher education sector landscape. The public benefit is clearly defined as set out above.
2. Leadership
The Board works with the Senior Leadership Team to set a clear strategic direction for the organisation and to ensure that the OIA’s values are reflected in our work.
3. Integrity
Integrity is one of the OIA’s core values. Trustees are expected to follow the Seven Principles of Public Life drawn up by the Committee on Standards in Public Life and to preserve the independence of the OIA Scheme. The OIA’s values underpin all our work and inform how we develop what we do.
4. Decision making, risk and control
The Board maintains strong oversight of the organisation, delegated where appropriate to committees with defined terms of reference or to the executive. Key policies and procedures and organisational performance are regularly reviewed. The Board has developed a sophisticated approach to risk management as outlined above, and appropriate audit arrangements are in place.
5. Board effectiveness
Recruitment to the Board ensures an appropriate balance of skills and knowledge, considering the OIA’s evolving membership. Trustees receive a full induction. The Board and its committees meet regularly to receive information and reports and to have full and frank discussions of important issues. The Board reviews its own effectiveness annually. The Board has completed a review of the OIA’s governance arrangements and implemented new arrangements as outlined above. At the Board’s December meeting, it commenced an internally-led effectiveness review that will conclude in early 2026.
6. Equality, diversity, and inclusion
The Board values diversity in all its forms. It is committed to reaching out to underrepresented groups when recruiting Trustees, and to removing barriers to participation.
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
Diversity on the Board is monitored. The Board has a strong focus on promoting equality, diversity, and inclusion within the organisation and through the OIA’s work, led by a Diversity Steering Group comprising Trustees with expertise in this area and relevant senior managers.
7. Openness and accountability
Openness and building trust to maintain the confidence of stakeholders is a key part of how the OIA operates. Information about our work is available on our website and published in an Annual Report and other publications. A Register of Directors’ Interests and summary minutes of Board meetings are also published on the website.
We continue to engage with developments to the Charity Governance Code and recommended practice, including the most recent changes in November 2025. The Board reviews annually the effectiveness of the OIA’s governance practice in relation to the Code and other relevant developments, with external input as appropriate.
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
Trustees' responsibilities
Company law requires the Trustees to prepare financial statements for each financial year that give a true and fair view of the charitable company’s situation and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the Trustees are required to:
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Select suitable accounting policies and apply them consistently.
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Make judgements and estimates that are reasonable and prudent.
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State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue to operate.
The Trustees are responsible for maintaining proper accounting records which 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. The Trustees are also responsible for safeguarding the assets of the charitable company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees confirm that so far as they are aware, there is no relevant audit information of which the charitable company's auditors are unaware. They have taken all the steps that they ought to have taken as Trustees to make themselves aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE TRUSTEES INCLUDING THE STRATEGIC REPORT For the year ended 31 December 2025
Auditors
In September 2024, the Board acting on delegated authority from the Annual General meeting appointed UHY Ross Brooke as the OIA’s auditors for an initial period of three years (to cover the audits of 2024, 2025 and 2026)
The Report of the Trustees (incorporating the Strategic Report) was approved by the Board of Trustees on 26 March 2026 and signed on their behalf by:
……………………………………………
S Scavazza – Trustee
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES For the year ended 31 December 2025
Opinion
We have audited the financial statements of The Office of the Independent Adjudicator for Higher Education (the charitable company) for the year ended 31 December 2025 which comprise the Statement of Financial Activities, the Balance Sheet, Statement of Cash Flows 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 31 December 2025 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustee's 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.
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES For the year ended 31 December 2025
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained over 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 matter prescribed by the Companies Act 2006
In our opinion based on the work undertaken in the course of our audit
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the information given in the trustees' annual report, which includes the strategic report and the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements: and
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The strategic report and the directors’ report included within the trustees' annual report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In 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 strategic report or the directors’ report included within the trustees' annual report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES For the year ended 31 December 2025
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of the Trustees
As explained more fully in the Trustees' Responsibilities Statement set out on page 14, the trustees (who are also the directors of The Office of the Independent Adjudicator for Higher Education for the purposes of company law) are responsible for the preparation of a trustees' annual report and 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below.
We have considered:
- the nature of the charity and sector, control environment and operating performance;
23
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES For the year ended 31 December 2025
-
the charity's own assessment, including assessments made by key management, of the risks that irregularities may occur either as a result of fraud or error;
-
any matters we identified having reviewed the charity's policies and procedures relating to:
-
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
-
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
-
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
-
the matters discussed amongst the audit engagement team.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the areas in which management is required to exercise significant judgement, such as the recognition of income and provisions. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context were the Companies Act, Charities Act and tax legislation.
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: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
24
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
REPORT OF THE INDEPENDENT AUDITOR TO THE TRUSTEES For the year ended 31 December 2025
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.
Grace Pay
Senior Statutory Auditor For and on behalf of
UHY Ross Brooke
Statutory Auditor
Suite I Windrush Court Abingdon Business Park OX14 1SY
Date: 04/04/2026
25
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
STATEMENT OF FINANCIAL ACTIVITIES (incorporating an Income & Expenditure Account) For the year ended 31 December 2025
| Notes 3 Total income 4 Total resources expended Net income Net movement in funds for the year Total funds at 1 January 2025 Total funds at 31 December 2025 15, 16 Income Income from investments Income from charitable activities Subscriptions Other income Expenditure Charitable activities |
8,893,388 46 241,290 9,134,724 8,062,317 8,062,317 1,072,407 1,072,407 3,330,818 4,403,225 Total Unrestricted funds 2025 £ |
8,255,722 328 187,928 Total Unrestricted funds 2024 £ |
|---|---|---|
| 8,443,978 | ||
| 7,563,029 | ||
| 7,563,029 | ||
| 880,949 | ||
| 880,949 2,449,869 |
||
| 3,330,818 |
The amounts derive from continuing activities. All gains and losses recognised in the year are included in the statement of financial activities.
The notes on pages 29 to 39 form part of these financial statements.
26
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
BALANCE SHEET AT 31 DECEMBER 2025
| Notes FIXED ASSETS Tangible assets 8 Intangible assets 9 CURRENT ASSETS Debtors 10 Cash at bank and in hand LIABILITIES: Amounts falling due within one year 11 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS EXCLUDING PENSION PROVISION TOTAL NET ASSETS Provisions for liabilities 13 FUNDS Unrestricted Funds General Reserves 15 |
38,962 89,713 128,675 201,636 9,774,756 9,976,392 (5,501,842) 4,474,550 4,603,225 4,603,225 (200,000) 4,403,225 4,403,225 4,403,225 2025 £ £ |
33,301 172,524 205,825 233,109 8,541,084 2024 £ £ 8,774,193 (5,449,200) 3,324,993 3,530,818 3,530,818 (200,000) 3,330,818 3,330,818 3,330,818 |
33,301 172,524 205,825 233,109 8,541,084 2024 £ £ 8,774,193 (5,449,200) 3,324,993 3,530,818 3,530,818 (200,000) 3,330,818 3,330,818 3,330,818 |
33,301 172,524 £ |
|---|---|---|---|---|
| 9,976,392 (5,501,842) |
||||
| 3,530,818 | ||||
| 3,530,818 (200,000) |
||||
| 3,330,818 | ||||
| 3,330,818 | ||||
| 3,330,818 |
The financial statements were approved and authorised for issue by the Board of Trustees on Thursday 26 March 2026 and are signed on their behalf by:-
S Scavazza - Trustee
The notes on pages 29 to 39 form part of these financial statements.
27
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2025
| Notes Underlying cash provided by operating activities (Decrease) / increase in subscriptions received in advance Purchase of tangible fixed assets Cash from investing activities Increase in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Total cash and cash equivalents at the end of the year Cash provided by operating activities 19 Cash flows from investing activities Interest income |
1,123,521 947,893 (94,227) 975,731 1,029,294 1,923,624 241,290 187,928 (36,912) - 204,378 187,928 1,233,672 2,111,552 8,541,084 6,429,532 9,774,756 8,541,084 2025 £ 2024 £ |
|---|---|
28
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 31 December 2025
1 STATEMENT OF ACCOUNTING POLICIES
Basis of preparation
The Office of the Independent Adjudicator for Higher Education is a registered charity, number 1141289, and a charitable company limited by guarantee, number 04823842, incorporated in England and Wales. The address of its registered office is Apex Plaza, Block D 1st Floor Forbury Road, Reading, England, RG1 1AX.
The financial statements of the charitable company have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) - Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements are prepared in pound sterling (£) and the figures are rounded to the nearest £.
The charitable company 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).
Going Concern Basis
The company made a surplus on the general reserves of £1,072,407 (2024: £880,949) in the year and has net current assets of £4,474,550 (2024: £3,324,993). Cash at bank, excluding subscriptions received in advance, was £4,915,427 (2024: £3,587,528) and net assets of £4,403,225 (2024: £3,330,818).
The Charity continually evaluates its operating environment including this year the impact of continuing cost of living pressures on the organisation itself, its Scheme members and wider stakeholders. An assessment of the current financial position, cash flow and future income has been made to demonstrate the ongoing viability of the organisation and its ability to carry out its work in this context. The Charity remains confident that financial resources are sufficient to ensure the ability to continue as a going concern for the foreseeable future, being at least twelve months from the date of approval of these financial statements and therefore have prepared the financial statements on a going concern basis.
Fund accounting
General funds are unrestricted funds that are available for use at the discretion of the Trustees in furtherance of the general objectives of the charitable company and have not been designated for other purposes.
Income
All income is included in the statement of financial activities when the charitable company is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Subscriptions
Subscription income is receivable from higher education providers in England and Wales.
Expenditure
Expenditure is accounted for on an accruals basis. The irrecoverable element of VAT is included with the item of expense to which it relates. Support costs include office functions including finance, human resources and general management. Governance costs include costs such as Board and committee meetings, and the costs of preparing statutory accounts and satisfying public accountability.
The calculations of support and governance costs include, where practical, an estimated split of employees' time but no allocation of general overheads such as premises costs.
29
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2025
Tangible fixed assets and depreciation
Depreciation is provided on all tangible assets in order to write off their cost less residual value over their estimated useful lives at the following annual rates:-
Leasehold improvements Straight line over the term of the lease Furniture, fixtures and equipment 25% straight line Computer equipment 25% straight line Infrastructure costs Straight line over the term of the lease
Individual assets under £1,000 are not capitalised.
Intangible fixed assets and amortisation
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful life is as follows:
Software
25% straight line
Financial instruments
Basic financial instruments include debtors and creditors and the pension liability. Debtors and creditors are initially recognised at transaction value and subsequently measured at amortised cost. The pension liability is measured at fair value. Note 15 provides more information on financial instruments where future cash flows are anticipated, with financial assets referring to debtor balances excluding prepayments and deferred expenditure, and financial liabilities referring to all creditor balances excluding deferred income and other taxes and social security.
Pension schemes
The charitable company participates in the Universities Superannuation Scheme (the scheme). 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 schemewide contribution rate is set. The charitable company 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.
Provision for liabilities
Provisions are recognised when the charitable company has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be require to settle the obligation and a reliable estimate can be made of the amount of the obligation.
Operating leases - as the lessee
Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the lease term.
30
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2025
2 JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the charity's accounting policies, which are described in note 1, Trustees are required to make judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. 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 the current and future.
The calculation of dilapidations provision involved a significant level of estimation .The amount recognised in the financial statements is the best estimate, based on all relevant information available at the year end. 2025 2024
| available at the year end. 3 BANK AND OTHER INTEREST Bank interest receivable 4 TOTAL RESOURCES EXPENDED General Reserves Charitable activities Direct charitable activities Support costs Governance costs 5 EXPENDITURE Direct charitable activities include: Operating lease charges Depreciation Amortisation Trustee / Director costs Pension costs Governance costs include: Auditors' remuneration |
Total 2025 £ 7,213,044 703,963 145,310 2025 £ 307,295 30,927 82,811 54,404 696,046 8,062,317 19,050 2025 £ 241,290 |
2024 £ 187,928 |
|---|---|---|
| Total 2024 £ 6,720,399 733,435 109,195 |
||
| 7,563,029 | ||
| 2024 £ 221,972 49,799 82,811 44,633 638,642 19,752 |
31
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2025
6 TAXATION
The company is a registered charity. It has no liability to corporation tax on bank interest received or its charitable activities. The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
7 STAFF COSTS
| STAFF COSTS | ||
|---|---|---|
| 2025 | 2024 | |
| £ | £ | |
| Wages and salaries | 5,138,732 | 4,765,396 |
| Social security costs | 616,790 | 497,005 |
| Pension contributions paid | 696,046 | 638,642 |
| 6,451,568 | 5,901,043 | |
| The average number of employees during the year was: | ||
| No. | No. | |
| 106 | 101 | |
| The numbers of employees whose emoluments (being all remuneration, | benefits and payments made | |
| £60,000 - £70,000 | 9 | 6 |
| £70,000 - £80,000 | 7 | 4 |
| £80,000 - £90,000 | 2 | 2 |
| £90,000 - £100,000 | 2 | - |
| £150,000 - £160,000 | - | 2 |
| £160,000 - £170,000 | 2 | - |
| The number of those higher paid employees who accrued benefits | 22 | 14 |
| Pension contributions for above employees | 169,215 | 168,664 |
The Senior Leadership Team comprises two posts and are paid equally. The total of employee benefits (including employer's pension contributions and employer's national insurance contributions) paid to the Senior Leadership Team in the year totalled £414,073 (2024: £391,841).
A grading structure and job evaluation framework are in place to set the appropriate pay grade for each role. As last year, around three quarters of staff are female, and the proportion in senior roles is similar. The median gender pay gap at 31 December 2025 was 7.9% (2024: 9.7%) in favour of men. This figure is likely to vary over time due to the small size of the organisation. The Board and relevant committees monitor this annually.
32
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2025
7 STAFF COSTS (CONTINUED)
In accordance with the company's Articles of Association and Charity Commission guidance, meeting attendance remuneration of £340 per meeting totalling £36,720 (2024: £27,880) were paid to 8 (2024 8) Trustees during the year (S Scavazza 26, S Williams 10, J Rees 8, A Adebisi 16, M Kirke 15, A Chandler 15, WV Finlay 7 and N Flint 11). In addition the Chair receives an annual remuneration of £7,500 (2024: £7,500). Expenses of £4,855 (2024: £5,834) were reimbursed or paid on their behalf to 10 Trustees (2024: 13) in the year.
33
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2025
8 TANGIBLE ASSETS
| Depreciation At 1 January 2025 Charge for the year Eliminated on disposal 66,417 11,365 (46,434) Amortisation At 1 January 2025 Charge for the year Eliminated on disposal At 31 December 2025 35,274 At 31 December 2025 31,348 15,616 At 31 December 2025 3,926 9 INTANGIBLE ASSETS At 31 December 2025 At 31 December 2025 At 31 December 2025 Fixtures, infrastructure and computer equipment £ Cost At 1 January 2025 Additions Disposals 82,033 - (46,759) Cost At 1 January 2025 Additions Disposals Net Book Value At 31 December 2024 Net Book Value At 31 December 2024 |
466,197 19,562 (483,883) 36,912 1,876 17,685 35,036 Leasehold improvements £ 483,882 36,912 (483,882) |
Total £ 565,915 36,912 (530,641) |
|---|---|---|
| 72,186 | ||
| 532,614 30,927 (530,317) |
||
| 33,224 | ||
| 33,301 | ||
| 38,962 | ||
| Software £ 331,245 - - |
||
| 158,721 82,811 - 331,245 |
||
| 241,532 | ||
| 172,524 | ||
| 89,713 |
34
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2025
10 DEBTORS
| 10 DEBTORS |
||
|---|---|---|
| Trade debtors Other debtors 11 LIABILITIES Amounts falling due within one year Trade creditors Social security and other taxes Other creditors Subscriptions received in advance |
201,636 5,501,842 2025 £ 64,513 137,123 2025 £ 31,876 161,198 449,439 4,859,329 |
2024 £ 18,095 215,014 |
| 233,109 | ||
| 2024 £ 52,158 138,091 305,395 4,953,556 |
||
| 5,449,200 |
Subscriptions received in advance relate to the payment of subscriptions for the calendar year 2026.
35
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2025
13 Provisions for liabilities
| Provision b/fwd Additional provisions recognised Provision c/fwd |
200,000 - 200,000 2025 Dilapidation provision |
- 200,000 2024 Dilapidation provision |
|---|---|---|
| 200,000 |
The obligation to fund the past deficit on the USS arose from the contractual obligation of employers within the scheme, including the OIA, to make additional contributions to reduce the overall deficit arising from past performance.
In December 2023 a revised schedule of contributions was announced which reduces employer contributions from 21.6% to 14.5% and no longer includes any deficit recovery contributions. This replaced the previous plan based on the March 2020 valuation which showed a deficit of £14.1bn and required deficit recovery contributions of 6.3% of salaries. As there is no longer an obligation to pay any deficit recovery contributions the pension provision was reduced to nil in the year ended 31 December 2023.
The dilapidation provision relates to estimated costs of rectification that the charitable company is liable for under the terms of the lease of its previous rented office.
The amount recognised is the best estimate of the cost to return this property back to it's original condition.
Dilapidations provisions are expected to be utilised over the next year.
14 OPERATING LEASE COMMITMENT
The following total lease payments are committed to be paid under non-cancellable operating leases:
| Within one year Within two to five years Over five year |
2025 £ 341,294 1,683,726 1,124,671 3,149,691 |
2024 £ 129,117 14,405 794 |
|---|---|---|
| 144,316 |
36
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2025
15 ANALYSIS OF NET ASSETS BETWEEN FUNDS
At 31 December 2025
| Unrestricted Funds General Reserves Pension Reserve Unrestricted Funds General Reserves Pension Reserve At 31 December 2024 16 UNRESTRICTED FUNDS At 31 December 2025 General Reserves UNRESTRICTED FUNDS At 31 December 2024 General Reserves |
Fixed Assets £ 128,675 - Fixed Assets £ 205,825 - 128,675 205,825 3,330,818 3,330,818 2,449,869 2,449,869 Balance 1 January 2025 £ Balance 1 January 2024 £ |
Net Current Assets £ 4,474,550 - Net Current Assets £ 3,324,993 - 4,474,550 3,324,993 Income £ 9,134,724 9,134,724 Income £ 8,443,978 8,443,978 |
Long term Liabilities £ (200,000) - Long term Liabilities £ (200,000) - (200,000) (200,000) Expenditure £ (8,062,317) (8,062,317) Expenditure £ (7,563,029) (7,563,029) |
Total £ 4,403,225 - |
|---|---|---|---|---|
| 4,403,225 | ||||
| Total £ 3,330,818 - |
||||
| 3,330,818 | ||||
| 4,403,225 Balance 31 December 2025 £ |
||||
| 4,403,225 | ||||
| 3,330,818 Balance 31 December 2024 £ |
||||
| 3,330,818 |
37
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2025
17 RECONCILIATION IN MOVEMENT IN FUNDS
| RECONCILIATION IN MOVEMENT IN FUNDS | ||
|---|---|---|
| Funds at 31 December 2025 Retained surplus for the year Funds at 1 January 2025 |
4,403,225 2025 £ 1,072,407 3,330,818 |
2024 £ 880,949 2,449,869 |
| 3,330,818 |
18 PENSIONS
The OIA participates in the Universities Superannuation Scheme (USS). In 2016 the scheme changed from a defined benefit only scheme to a hybrid pension scheme, providing defined benefits (for all members) as well as defined contribution benefits. The assets of the scheme are held in a separate fund administered by the trustee, Universities Superannuation Scheme Limited. The charitable company is required to contribute a specified percentage of payroll costs to the pension scheme to fund the benefits payable to the charitable company's employees. In 2025 the percentage was 14.5% (2024: 14.5%). The charitable company is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore accounts for the scheme as if it were a defined contribution scheme.
The total cost charged to the profit and loss account is £696,046 (2024: £638,642) as shown in note 7. There was an accrual at the end of the financial year in respect of these contributions of £97,136 (2024: £82,715) included within other creditors. The disclosure below represents the position from the scheme's financial statements.
As disclosed in note 13 following the announcement in December 2023 of a revised schedule of contributions there is no longer an obligation to fund past deficits through a deficit recovery plan so the pension provision has been reduced to nil as at 31 December 2023.
Since the OIA cannot identify its share of the USS Retirement Income Builder section of the scheme assets and liabilities, the following disclosures reflect those relevant for the section 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).
| Actuarial valuation date | 31 March 2023 | 31 March 2020 | |
|---|---|---|---|
| Valuation method Value of scheme assets Value of technical provisions Netpension surplus/(deficit) |
£73.1bn £65.7bn £7.4bn |
£66.5bn £80.6bn (£14.1bn) |
The key assumptions can be found in the full valuation report on the USS website.
38
THE OFFICE OF THE INDEPENDENT ADJUDICATOR FOR HIGHER EDUCATION
(Registered number: 04823842; Charity number: 1141289)
NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2025
| 19 | RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH INFLOWS FROM OPERATIONS | RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH INFLOWS FROM OPERATIONS | RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH INFLOWS FROM OPERATIONS |
|---|---|---|---|
| 2025 | 2024 | ||
| £ | £ | ||
| Net movement in funds | 1,072,407 | 880,949 | |
| Add back depreciation and amortisation charges | 113,738 | 132,610 | |
| Profit/loss on disposal of fixed assets | 324 | - | |
| Deduct investment income shown in investing activities | (241,290) | (187,928) | |
| Decrease / (increase) in debtors | 31,473 | (19,808) | |
| Increase in creditors | 146,869 | 142,070 | |
| Underlying cash provided by operating activities | 1,123,521 | 947,893 | |
| (Decrease) / increase in subscriptions in advance | (94,227) | 975,731 | |
| Net cash provided by / (used) by operating activities | 1,029,294 | 1,923,624 |
20 ANALYSIS OF MOVEMENT IN NET DEBT
| ANALYSIS OF MOVEMENT IN NET DEBT | |||||
|---|---|---|---|---|---|
| At | 1 January | Cashflow | At | 31 December | |
| 2025 | 2025 | ||||
| £ | £ | £ | |||
| Cash at bank and in hand | 8,541,084 | 1,233,672 | 9,774,756 |
21 RELATED PARTY DISCLOSURES
Payments to Trustees are disclosed in note 7.
Some Trustees also hold senior positions at higher education providers. During the year in accordance with the requirements of the Higher Education Act (2004) these providers paid subscriptions to the charitable company. These fees are calculated on an arms length basis and in accordance with a defined formula.
The Board of Trustees has no involvement in the administration or adjudication of individual cases.
There were no other related party transactions during the current or preceding year.
39