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2024-07-31-accounts

Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

Commercial in confidence

Jisc Trustees’ Report and Financial Statements

Year ended 31 July 2024

Charity registration number: 1149740

Company registration number: 05747339

Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

Contents

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||| |---|---| |Report from the chair|...................................................................................................................... 2| |Strategic report|............................................................................................................................... 4| |Our vision and purpose|................................................................................................................ 4| |Our strategy|................................................................................................................................ 5| |Key achievements 2023/24|......................................................................................................... 6| |Financial performance and strategy|............................................................................................ 8| |Principal risks and uncertainties|................................................................................................ 15| |Stakeholder engagement and Companies Act section 172 statement|....................................... 16| |Charitable purpose and public benefit|....................................................................................... 17| |Trustees’ report|............................................................................................................................ 18| |Legal and administrative information|........................................................................................ 18| |Membership|.............................................................................................................................. 19| |Group structure|......................................................................................................................... 20| |Governance and management|.................................................................................................. 22| |Streamlined energy and carbon reporting|.................................................................................. 30| |Financial policies and risks|....................................................................................................... 33| |Internal organisation|................................................................................................................. 34| |Responsibilities of the board in relation to the Trustees’ report|................................................. 38| |Independent auditor’s report to the members and trustees of Jisc|............................................... 40| |Consolidated Statement of Financial Activities|............................................................................. 45| |Consolidated and Charity Balance Sheets as at 31 July 2024|........................................................ 46| |Consolidated Cash Flow Statement for the year ended 31 July 2024|............................................ 47| |Notes to the financial statements|................................................................................................. 48|

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Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

Report from the chair

I am delighted to present our trustees’ report and financial statements for the year ended 31 July 2024.

It is a year in which the sector has experienced considerable flux, not least with the lead-up to a general election and a change of government. While the new government’s education and research policies are mostly to come, three of the five missions set out by Labour – kickstarting economic growth, making Britain a clean energy superpower and breaking down opportunities for all – touch directly on the crucial work that takes place in colleges, universities and research centres all around the UK. In addition, the swift establishment of Skills England signals a fresh focus on the nation’s skills gaps.

However, financial concerns are weighing ever more heavily on the sector. We know that our HE members face significant financial pressures due to frozen tuition fees, escalating costs, inflation, reduced revenues and the growing disparity between income and expenditure. The current funding model is seen as unsustainable. In FE, the availability of funds to invest in new technologies, staff training and infrastructure is a crucial factor and enabler. As a result, we have been developing more services at pace to help our members meet their challenges and achieve value for money. For example, we have delivered licensing and software deals , from Springer, Elsevier and Wiley as well as Microsoft and Oracle. These build on the savings of £580m achieved last year through further cost avoidance and efficiency.

The increasing frequency and severity of the cyber attacks experienced by the sector is a further source of concern. Indeed, it is the most commonly cited concern for both HE and FE in this year’s Jisc leadership survey. With cyber security increasingly a national issue with potentially far-reaching impacts on UK PLC, we are supporting the sector with our services and thought leadership. We have secured certification to the highest level of the National Cyber Security Centre (NCSC) Cyber Incident Response (Level 2), which underlines our capability to effectively manage cyber security incidents and our commitment to maintaining the highest standards of cyber security resilience and incident response for our customers. Furthermore, our robust Security Operations Centre (SOC) for the education and research sector is now fully into proof of concept stage, with five HE and FE institutions actively participating in testing a range of critical security services. We expect to launch the full service in March 2025.

We also know that artificial intelligence (AI) closely follows cyber security as the challenge expected to have the greatest impact on our members over the next three years, as both a disruptor and an enabler. AI is seen as a transformative force in the sector, with the potential to automate standard tasks and transform teaching, learning and research. However, there are concerns about its integration, ethics, the risk to academic integrity and the need for safe, secure and effective use. We are supporting the sector to meet these challenges by leading the way on the AI conversation with our experts, informing sector bodies and policymakers, and producing practical toolkits.

Our members depend on the resilience of the Janet Network and we are pleased that an overwhelming number (96%) say that our connectivity responds well to the needs of their organisation. This year we have built even further on those firm foundations of world-leading resilience and accessibility with the launch of our Janet Resilient Access product (offering 1Gbit/s fibre and cellular failover). We have also extended eduroam wifi into new places across the UK via low-cost, easy-to-use devices using 4G and 5G cellular connectivity. Our SD-WAN (software-defined wide area network) proof of concept, which provides a secure connection to Janet without a direct Janet line, freeing up IT resource costs due to simplified network infrastructure, is another exciting development.

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Building on our previous engagement with the government’s Reducing Research Bureaucracy review, we were named in the government response to the review as a key contributor to deliver a number of important recommendations to help remove bureaucracy across the research system which has become a barrier to effective working and efficiency.

Following the publication of our first annual sustainability report last year, we have continued our focus on this critical area, especially in light of increasing awareness of the energy-hungry demands of AI. Our survey of Jisc members showed that digital sustainability is already high on the agenda for many and we are supporting cross-sector collaboration and good practice through a digital sustainability roadmap. Mapping the energy use and emissions associated with the Janet Network is a key factor in our efforts to reach net zero across our operational emissions by 2040.

Last year we became a producer of official statistics about higher education in the UK, following our merger with HESA (the Higher Education Statistics Agency), and an immediate focus since then has been the Data Futures project. We understand that there were challenges with this implementation and have listened to the concerns of colleagues across the HE sector. A clear message was received about the stability of the HESA data platform and the need to minimise data changes. These have been our focus areas for this year. We were able to publish the 2022/23 student data bulletin on 8 August 2024, which was later than planned so as to include further amendments to the data from providers, enable enhanced quality assessment to be conducted and align with regulatory and funding requirements of statutory customers. We also conducted an internal audit on our processes and systems that has resulted in improvements to user testing and development as well as additional training, support and documentation. In addition, we have collaborated on the independent review led by the Office for Students (OfS) this summer. We will work collaboratively with the sector and OfS to further improve processes.

Our focus on data relating to employability saw us receive the Office for Statistics Regulation kitemark of Accredited Official Statistics for our Graduate Outcomes survey data, with our Graduate Outcomes survey generating 350,000 responses from the 2021/22 cohort. We also shared the results of the Early careers survey 2024 which highlighted some of the key challenges faced by students and graduates.

Our ongoing focus on the customer experience means that we are improving our processes and systems to provide a smoother experience for customers. This focus on our customers continues to be reflected in high customer satisfaction scores, with 89% of leaders across FE and HE reporting that we are a trusted partner.

As ever, I wish to offer the thanks of everyone on the board to Jisc colleagues who have continued to work so hard throughout the year. I am confident that this high level of support will continue and we will remain a reliable and trusted partner for digital, data and technology.

Professor Paul Boyle

Jisc chair

November 2024

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Strategic report

The trustees present our strategic report for the year ended 31 July 2024.

Our vision and purpose

Jisc is the UK digital, data and technology agency focused on tertiary education, research and innovation.

Vision : for the UK to be a world leader in technology for education, research and innovation

Our purpose : to improve lives through the digital transformation of education and research

We are a not-for-profit organisation and believe education and research improves lives and that technology improves education and research.

We provide managed and brokered products and services, enhanced with expertise and intelligence, to provide sector leadership and enable digital transformation.

We are a member organisation, working in support of further education, higher education and research and innovation in the UK. We also provide services to local government, public sector, non-profits and industry customers.

Our overarching aim is to be the vital partner for the sectors. Here’s how we help:

Cloud – consultancy, support and reseller of cloud services

Libraries, learning resources and research – shared services, infrastructure and advice

Connectivity – network connection services and infrastructure

Student experience – tools to enrich learning and employability

Cyber security – protecting the Trust and identity – manage access to network and member organisations systems efficiently and effectively Zo Data collection and analytics – Advice and guidance – guides, training collecting essential sector data and and consultancy helping address strategic challenges through data

Procurement frameworks and dynamic purchasing systems – approved agreements to save time and money

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Our strategy

We are the vital sector partner, holding a prominent leadership position, using sector knowledge and expertise to exert a strong level of influence over the advancement of the tertiary education and research sectors in data, digital and technology.

We will achieve this by continuing to direct our efforts on three things:

i. Delivering the right solutions

Enabling digital transformation by providing solutions to our customers through our portfolio of products and services. Striking the right balance between in-house delivery and working with partners to respond in the best way to our customers' needs.

ii. Empowering communities

Our strength comes from our customers, sectors and communities. As a sector leader we bring insight and inspiration, and work with these communities to innovate and imagine new solutions.

iii. Be a force for good

As a driver for change, we are focused on our commercial and financial sustainability but are always aware of our place in, and impact on, the world.

Below we share information about some of the key activities and achievements from 2023/24 that have contributed to the delivery of our strategy. In 2024/25, we’ll be continuing our work in these areas, prioritising delivering the right solutions, focusing on empowering communities and maintaining our emphasis as being a force for good.

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Key achievements 2023/24

We maintained Janet We worked in We welcomed 10,000 Network availability of response to 12 delegates to a range 99.9% (12 month business impacting of training average) through incidents, 37 notable opportunities 2023/24 incidents and mitigated 442 DDoS attacks against 76 members We generated income 89% of HE and FE We continued to drive and managed our institutions combined savings in the HE costs to ensure we agree that we are a sector on licensing could invest in the trusted partner agreements building products that our on £580m from last members need year We trained 1,230 of Our Graduate We welcomed 2.1 our staff on customer Outcomes survey million unique visitors experience to ensure generated 350,000 to Prospects.ac.uk a consistent customer responses from the per month centric approach 2021/22 cohort

We welcomed 2.1 million unique visitors to Prospects.ac.uk per month

Some of our other key activities through the year to deliver our 2022-2025 strategy are below.

How we have delivered the right solutions How we have delivered the right solutions How we have delivered the right solutions
We launched a newconsultancy
servicedesigned to guide
universities towards digital
transformation.		 We brokered an agreement for
theFeedbackFruitsdigital tool
that supports transformative
assessment and feedback
practices.		 We launched a BETA pilot of the
redeveloped Learning Analytics
servicewhich is now faster,
more efficient and easier to use.
We launched our cyber security
posture survey to benchmark
the current position of
institutions and inform strategic
and tactical action to improve		 We launched ourExtending
eduroamandCyber security
threat monitoringservices to
our members		 We received funding from UK
Research and Innovation (UKRI)
to extend our work onOctopus,
a new publishing platform for
scholarlyresearch

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How we have empowered communities

How we have empowered communities How we have empowered communities How we have empowered communities
We convened a sector working
group to inform a guide to
digital transformation and
generated atoolkitto enable
members to assess their digital
maturity and generate a
roadmap. 27 pilots are
underway to baseline maturity
and share the results.		 We delivered a report,
commissioned by UKRI on
extending and identifying new
collaborativedigital research
infrastructurefor a resilient,
sustainable and inclusive
research sector.		 We delivered an updated
apprenticeship toolkitto
support FE members in the use
of digital technologies to
support apprentices.
We conducted our firstFE
Systems surveyto support
future benchmarking and
licensing negotiations.		 We provided significant advice
and support to the Department
for Education (DfE) on digital
standards for schools and
colleges		 We facilitated strategic
discussions at our flagship
events – Digifest, Security
conference and Networkshop -
with an average customer
satisfaction scores of 88%.

How we have been a force for good

How we have been a force for good How we have been a force for good How we have been a force for good
We launched our firstannual
sustainability reportmapped
against the United Nations
Sustainable Development Goals
(UN SDGs).		 We published the results of a
survey on digital sustainability
in tertiary education with
recommendations for reducing
carbon impact across estates.		 We shared the results of the
Early careers survey 2024
which highlighted some of the
key challenges faced by
students and graduates.
We are on our journey to
understand the energy
consumption and emissions
associated with the Janet
Network so we can plan our
approach to reducing impact.		 We are continuing our work to
understandinternational
students’ digital experienceand
looking to the next phase to
inform service and curricula
developments for international
students		 We were awarded the status of
producer of official statistics
and received the Office for
Statistics Regulation kitemark
of Accredited Official Statistics
for our Graduate Outcomes
surveydata

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Financial performance and strategy

This report and the accompanying financial statements have been prepared in accordance with Financial Reporting Standard 102 (FRS 102) and the Charities SORP.

Unrestricted
funds
2024		 Restricted
funds
2024		 Total
funds
2024		 Total
funds
2023
Restated
£’000 £’000 £’000 £’000
Donations and grants 58,230 13,440 71,670 71,670
73,579
Income from charitable activities 25,712 - 25,712 25,712
23,993
Income from trading with members 21,141 426 21,567 21,567
18,458
Income from other trading activities 28,966 - 28,966 28,966
27,028
Investment income 743 - 743 743
717
Income 134,792 13,866 148,658 658
143,775
Expenditure from charitable activities 77,944 15,669 93,613 103,382
Expenditure from trading with members 45,133 (15) 45,118 30,265
Other trading activities 22,683 1,332 24,015 17,172
Grants 137 - 137 (7)
Other gains - - - (757)
Expenditure 145,897 16,986 162,883 150,055
Net expenditure before movement
in pension provision		 (11,105) (3,120) (14,225) (6,280)
Release of pension provision 29,684 - 29,684 1,700
Net (expenditure)/income 18,579 (3,120) 15,459 (4,580)
Other unrealised gains 11,636 - 11,636 931
Gift of reserves from HESA - - - 2,149
Net movement in funds for the year 30,215 (3,120) 27,095 (1,500)
2024 2023
Restated
£’000 £’000
Fixed assets 149,469 104,908
Current assets 48,451 102,132
Creditors falling due in less than one year (57,127) (63,040)
Provisions for liabilities (1,356) (3,322)
Net current (liabilities)/assets (10,032) 35,770
Provisions for liabilities falling due in more than one year - (28,336)
Total net assets 139,437 112,342
Restricted reserves 5,615 8,735
Unrestricted designated reserves 60,559 16,759
Unrestricted free reserves 73,263 86,848
139,437 112,342
Cash and cash equivalents 12,137 64,802

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In 2020/21 we agreed to invest in enhancing our services and developing new products using our reserves to fund this. This would offer additional value to members, without increasing the subscription, and drive further contribution from our commercial products which would support our charitable objectives. This investment also included modernising data collection and publication following the merger with HESA.

This investment, over five years, means that we budgeted to deliver a deficit before any gains from investments or changes in the pension scheme, and in two of those years we have not increased member subscriptions, recognising the financial constraints of both higher and further education sectors, despite inflationary pressures on our cost base.

Recognising this investment, we have taken the decision to ring-fence a portion of the unrestricted reserves going forward - £36.4m for network refresh and additional cyber protection and £7.4m for data collection and publication modernisation.

The results for this year include the release of the USS (Universities Superannuation Scheme) pension scheme liability, adding £29.7m back into reserves (although this is a non-cash adjustment), and an increases in our investment portfolio of £11.6m which continues to grow and will be used in future to support our strategy.

Consolidated income and expenditure

The net movement in funds in the year is a surplus of £27.1m compared to a deficit of £1.5m in 2022/23 and total funds carried forward are £139.4m.

Excluding movements on the USS pensions scheme liability, the results for the year would have been a deficit of £2.6m compared to £3.2m last year.

Income

Total income has increased by 2%, from £143.8m in 2022/23 to £148.7m in 2023/24, with a fall in restricted income being offset by a £11.5m increase in unrestricted income (9%).

Donations and grant income consist of restricted and unrestricted funding from the higher and further education funding bodies across the UK. Core funding remained the same in total as in the previous year with £5m of funding from Research England moving from restricted to unrestricted. With the completion of the Janet Access Programme in Scotland and the data futures project being funded by Jisc reserves rather than by the OfS, restricted income has reduced from £20.2m to £13.4m.

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Other unrestricted income reflects the services we now offer, including the main member and HESA subscriptions, and non-charitable income has been split between members and non-members. Overall, other unrestricted income has increased by £6.6m (10%). This year also includes a full year of HESA activity, compared to 10 months in 2022/23.

Recognising the financial constraints of the sector, we again held both the Jisc and HESA subscriptions at previous year’s rates.

Connectivity remains the largest income stream, but this is a low margin activity and the majority of the costs of the Janet Network are covered by the grant income from government funders. This income comes from members taking connections in addition to those provided under their subscription and from customers (ie non-members) buying connectivity from us.

Trust and identity services include verification services offered through OpenAthens and VerifID, both of which have strong growth plans and are generally non-member facing, giving us diversification in both our customer base and internationally, with staff employed in Singapore to provide a more local service to our customers in Asia and Australia. Open Athens continues to show good growth with a new product Connect being developed to attract a different sector of the market.

Our cloud business resells web services such as Azure and AWS through procured frameworks as well as offering consultancy to members who are looking to move some of their activity into the cloud. We have seen year on year growth of £2.6m (51%) in this part of our activity.

Our libraries and learning resource income represents our management charges from flowthrough licensing and collections purchases. We have negotiated deals on behalf of our members and put in place frameworks which allow them to procure software and publications at a lower rate than they could obtain as a single institution. Members increasingly value this service and we are looking to expand it in the future. This flowthrough income is accounted for on an agency basis with the gross income being £170.9m (2023: £163.1m).

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Our members also buy additional cyber products including penetration testing and consultancy. We are developing new services such as cyber threat management and a SOC to help protect the sector against the increasing risk of cyber-attacks. The SOC will be launched at the security conference in November, with beta customers coming on line from March 2025.

Advertising income includes the HEDD service (UK’s official degree verification service) and the advertising of graduate recruitment schemes and university courses through the Graduate Prospects website. Data analytics income includes the sale of HEIDI Plus (the higher education sector’s leading data visualisation and analytics tool), tailored datasets and online survey tools for education and research. This year the income stream has suffered due to the late publication of student data and is more than 10% lower than in 2022/23.

Expenditure

Overall, expenditure has increased by £12.1m (8%). As with income, we have 12 months of HESA expenditure compared with 10 months last year. Expenditure on charitable and trading activities with members is funded by our core grant as well as income from members and surpluses on our commercial activity.

Expenditure has increased on activities where we have growth in income (cost of sales) and where we are investing to provide additional services and protections for our customers as part of the subscription. This is particularly the case with connectivity and cyber, but is also evident in areas where we have seen growth in income as members make more use of the rates we have obtained by negotiating on behalf of the sector (such as cloud).

Support costs include internal IT, finance and HR as well as other central shared resources and we are working to deliver efficiencies and keep these costs to a minimum.

Expenditure has also increased to support new products in data analytics and Group CTO as well as investing in major projects to improve our internal systems including our licence subscriptions manager (LSM), our Salesforce suite (including CRM) and the finance system which will support growth in the business and improve the efficiency of our support functions.

Depreciation and amortisation have remained fairly constant with the new useful economic life review undertaken in 2023 still being suitable for the assets we are holding, most of which relate to the Janet Network. During the year, we moved from Harwell to Milton Park and to new office space in Cheltenham.

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Both offices are smaller than previously, reflecting lower usage of our offices since the pandemic and reducing our ongoing costs.

Staff salary costs (ie excluding pension and social security costs) have increased from £53.7m to £57.5m (7%) as the average number of staff has increased from 1,152 to 1,272, with the majority of the new staff in technical roles.

The 2023 USS valuation was completed with the fund showing a surplus position of £7.4bn. This means that the balance sheet provision representing our share of the prior year deficit (£29.1m) was eliminated at 31 July 2024 as we are no longer required to make deficit recovery contributions. The employers’ contribution rate was also decreased from 21.6% to 14.5% from 1 January 2024.

During the year we transferred investments from Legal and General’s Future World Climate fund and Royal London Asset Management (RLAM) into Mercer Funds with the aim of improving performance and reducing costs, while maintaining diversification with Ruffer Global Funds and Savills Charity Property Fund. Overall, the portfolio increased by £11.6m. Strong cash balances, along with improved cash management, have given rise to investment income of £0.7m.

After the unrealised gain on the portfolio and the release of the pensions’ provision there was a surplus on unrestricted activity of £30.2m (2023: £0.6m) and a restricted deficit of £3.1m (2023: £2.1m deficit).

Balance sheet

Intangible assets include customer contracts (acquired as part of the HECSU (Higher Education Careers Services Unit) merger in 2020), digital content assets and software licences. With in-year additions to software licences of £0.7m and amortisation for the year of £3.2m, the net book value reduced from £12.1m to £9.6m. Digital content and customer contracts are written off over ten years with software licenses being written off in line with the contractual terms. Further detail can be found in note 14.

Tangible fixed assets have increased by £4.8m, with additions of £10.8m being offset by disposals with a net book value of £0.02m and a depreciation charge of £6.0m. The majority of additions relate to network equipment with £0.4m relating to fitout costs for the new office accommodation.

The majority of the investments are held within publicly traded funds. £31.0m of money market deposits were previously shown as cash/cash equivalents but are now disclosed as investments due to the underlying nature of the funds now held with Mercer (previously with RLAM). These funds are still available at two days’ notice should they be required and are used for operational cashflow purposes as if they were current rather than fixed assets.

This change, alongside the unrealised gain on the investment portfolio, has given an increase from £73.0m to £115.3m. The group also holds equity in a small portfolio of edtech start-up companies as well as investing in the Emerge Education fund –1.2% of the total invested is in edtech.

Total debtors have decreased by £1.0m, with trade debtors down by £0.1m. The taxation and social security debtors relate mainly to the VAT repayment (see note 31). Creditors (less than one year) have moved from £63.0m to £57.1m with trade creditors having decreased by £3.6m and accruals by £5.3m. This is due to improved payment processes meaning there are fewer unpaid invoices at year-end. The net agency creditor accounting at year-end has increased from £24.9m to £29.3m.

The net current liability position of £10.0m would have been a net current asset of £21.0m had the money market deposits had remained as cash and not been reclassified as investments.

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We have total funds of £139.4m (2023: £112.3m) including investments of £115.3m (2023: £73.0m) and cash balances of £12.1m at 31 July 2024 (2023: £64.8m). As noted above, £31.0m of money market funds transferred from RLAM to Mercer are now categorised as investments rather than cash.

The funds of £139.4m comprise £5.6m of restricted reserves (2023: £8.7m) and £133.8m of unrestricted reserves (2023: £103.7m).

Restricted reserves

Restricted reserves, which are subject to special terms specified by the grantors, can only be used for the purpose to which they are given and the trustees fully intend to utilise these funds over the next two years as part of the long term financial plan approved by the board. They do not form part of our reserves available for day-to-day use. We set aside cash to cover these funds. A full breakdown is provided in note 21.

Unrestricted reserves

The starting point for assessing the adequacy of reserves held by any charity, including Jisc, is normally the amount of “free” unrestricted funds it holds. Our policy for the designation for unrestricted funds is that they are comprised as follows.

Tangible assets : the Charities SORP specifically allows funds held against grant-funded tangible fixed assets for charity use to be excluded from general unrestricted reserves. This recognises that certain assets will be used operationally, and their disposal may adversely impact on a charity's ability to deliver its aims. At 31 July 2024 these amounted to £16.2m (2023: £16.2m).

Other designated funds : where unrestricted funds are designated for essential future spending, for example, to fund a project that could not be met from future income alone, they can be excluded from general unrestricted reserves. In 2023/24, we agreed to create two new designated reserves - £36.4m for investment in the network and cyber and £7.4m for data collection and publication modernisation, alongside an existing designated reserve of £0.6m (2023: £0.6m) in respect of restructuring funds.

To cover short-term self-funding if normal funding receipts were delayed, our policy is to have four months cover of our normal operating costs. At 31 July 2024, the balance of our general unrestricted reserves was £73.3m (2023: £86.8m) which equates to 6.2 months (2023: 6.2 months) of our normal operating costs.

The last major upgrade of the Janet Network was in 2012/13 and it is expected that the next major tranche of work will be due in 2028. Given the speed at which technology is moving in telecommunications and networking, and the cyber protection needed against threat actors, the chief technology officer (CTO) and Group CTO are reviewing the architecture of the network and will be delivering a plan on how best to deliver this next upgrade.

The current economic environment, with inflation and interest rates coming down more slowly than expected, places additional risk on the cost base. Pressure on salaries across many sectors, but particularly in technology where we compete for talent, give a need for additional flexibility and support to meet any short-term changes to funding which might come about due to pressure on either funders or members.

Given these plans, and the current economic situation and inflationary cost pressures the sector is facing, the trustees consider the level of reserves to be satisfactory.

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Cash

Our Group’s cash position for 31 July 2024 was £12.1m (2023: £64.8m). As noted above, £31.0m of money market deposits are classified as investments rather than as cash and can be realised at short notice if required.

2024/25 budget and financial forecast

We have approved an annual budget and three-year financial plan.

Our budget for 2024/25 takes account of the current economic climate, including increasing inflation and energy costs as well as significant investment into additional services for members, increased protection of the Janet Network and revenue generating activities which will diversify our income streams and provide stability for the future. Grant funding was the same as previous years and we have applied an inflationary increase on member subscriptions.

Our three-year plan has built-in efficiencies and savings which will be needed to deliver future surpluses. We have budgeted for an operating deficit position for 2024/25 with the significant investment in projects, as mentioned above, in place to utilise the VAT refund received from HMRC.

As noted in previous years, we have agreed a plan with management to spend the restricted reserves on the network and deliver value to the sector by upgrading services and products .

Going concern

As noted above, the budget for 2024/25 takes account of changes and challenges in the current economic climate and delivers investment in products and services from the VAT refund and Jisc’s reserves. Our financial position remains strong, with funding and other income streams being constant and free unrestricted reserves covering six months of operating expenditure, despite significant investment in the business.

Management have undertaken a review of the business, for the period up to 31 July 2026, including future plans, looking at a number of scenarios, including a significant reduction in income (from both members and funders), higher than inflationary increases in costs and expected savings not being delivered, to assess our ability to continue as a going concern.

Given our strong balance sheet and healthy reserves position, management consider that there is no material uncertainty that casts doubt on our financial sustainability over the next 12 months.

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Principal risks and uncertainties

A framework is in place that maps risk areas against our strategy and identifies early warning indicators as well as success indicators. This year we have undertaken an exercise to consolidate and reduce the number of risks we hold at a strategic level. Risk areas have been accepted or moved to operational risk registers.

The key risks to the successful delivery of our strategy are summarised as follows:

Risk area Mitigation
Our internal infrastructure and Janet Internal: recommendations of a review of internal security are
fails due to a cyber attack being implemented; an ISO27001 audit to take place in autumn
2024; CrowdStrike deployment across all devices; a focus on
vulnerability management
Janet: Distributed Denial of Service (DDoS) upgrades
completed, further enhancement planned, development of the
SOC to support customers to improve their security posture;
upgrades to Domain Name System (DNS) and Janet Network
Resolver Service (JNRS)
Failure to innovate / meet customer Key products at launch or beta stage; product roadmap shared
needs with sector; internal focus on processes to improve product
pipeline, pace of development and customer experience; focus
on understanding and responding to sector needs
Our income is reduced (from Demonstrating value for money for our members and funders;
members and funders) focus on services to save money for our members; generating
income to support core services; reviewing cost base and
controlling our costs
Critical product failure (non-cyber) Supplier mapping, major incident planning and exercises; focus
impacting on our ability to deliver to on business continuity across services and the organisation
our customers
Significant issues in the delivery of Improvements in HESA data platform based on feedback from
the student data collection and users; focus on stability of the platform; enhanced engagement
unable to deliver on the data strategy unable to deliver on the data strategy
with the sector
Failure to leverage the opportunities Continued support for members and stakeholders through
and mitigate threats around AI advice, guidance and training, community engagement, pilots
and leadership; issue of a member-facing strategy and an
internal AI strategy; collaboration with cyber to ensure AI-driven
threats are addressed

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Stakeholder engagement and Companies Act section 172 statement

As the UK digital, data and technology agency focused on tertiary education, research and innovation, our stakeholders include the UK research, higher and further education sectors, our core funders and wider customer base. As the Designated Data Body (DDB) and a producer of official statistics, our stakeholder base includes all those users of the data we gather and publish. As an organisation working for the benefit of others, we know that our staff are a key asset and are core to what we deliver.

Our strategy for 2022-2025 brings a very clear focus on meeting the needs of our stakeholders. Our three priorities reflect the ways in which our strategy supports our stakeholders. In delivering the right solutions we will meet the needs of our members and customers, their staff and students. Our aim to empower communities reflects the consistent feedback that we enable and add value by being proactive in key areas of importance to our members. Our focus on being a force for good reflects how we are working towards being a sustainable organisation, for the benefit of our stakeholders and the global community.

Sector engagement is a fundamental part of what we do. Our annual flagship event, Digifest, provides a forum for stakeholders to hear about the latest innovations in learning, teaching and assessment, leadership and culture, and research. Our focused events such as Networkshop, our Security conference and Connect More bring additional opportunities to engage across key stakeholder groups. Our annual stakeholder strategic updates, held across the nations, provide a unique opportunity for our members to reflect on our achievements in the previous year, hear about and feed into future plans and, crucially, share the challenges they are facing where we can help. The customer satisfaction score that we receive across our flagship events continues to be strong, at 88%.

Our annual leadership surveys of HE and FE highlight the key issues that institutions are facing. This year, cyber security and AI were both high on the list of issues where we can provide support, by providing services, advice and guidance and facilitating discussions through our communities.

Our community forums are focused around mature as well as new areas of interest, inspiring our members, facilitating collaboration and sharing good practice. We also actively engage with our sectors via working groups and advisory boards on key activities such as publisher negotiations. Facilitating these discussions means that we have a close and productive relationship with colleagues in key roles within our member organisations.

Along with our increased focus on the customer experience through our organisation-wide learning programme, our focus on meeting our members’ needs is stronger than ever. This is reflected in the leadership surveys conducted each year which show 89% satisfaction across HE and FE.

We have worked with and in support of our funders in a number of ways. For example, we responded to the challenge posed by the RAAC concrete issue to supply emergency connectivity to temporary school buildings on behalf of DfE England. UKRI granted additional funding to continue our work to change the way that academic publishing is viewed through our Octopus project. We supported the successful delivery of the first Scotland Digital 2030 vision and strategy workshop for tertiary education; and provided significant advice and support to DfE England on Digital Standards for Schools and Colleges. We’ve also led and participated in discussions regarding data support for international HE with a range of stakeholders including funders and key sector organisations. Building on our previous engagement

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with the government’s Reducing Research Bureaucracy review, we were named in the government response to the review as a key contributor to delivery against a number of key recommendations.

Our staff are recognised as a key asset as well as a stakeholder. Our HR strategy has a focus on employee experience and development. Trustees attend the all-staff conference, allowing an opportunity to engage with staff and respond to their questions and comments. There are mechanisms in place for staff to raise issues with leaders, for example, through our Employee Voice Forum. Our annual staff engagement survey continues to provide insight into the issues that are important to our staff: action plans are developed at organisation and team levels to address challenges where they exist. In our latest staff survey, 79% of employees recommend Jisc as a great place to work.

Charitable purpose and public benefit

As a charity, our purposes must be exclusively charitable.[1] Our charitable objectives are the advancement of education, lifelong learning and research for the public benefit through the provision of services to those within higher education, further education, research communities and charitable and not-for-profit organisations. How we do this is explained through this report. In everything we do, our trustees are aware of the public benefit requirements of our charitable status.

1 A charitable purpose is a purpose which comes within the descriptions listed in the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and which is for the public benefit.

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Trustees’ report

We present our report and audited consolidated financial statements for the year ended 31 July 2024.

Legal and administrative information

Registered and principal office address

4 Portwall Lane Bristol BS1 6NB

Company registration number: 05747339 Charity registration number: 1149740 Registered in England and Wales Company secretary: Alice Colban

Independent auditors

Grant Thornton UK LLP 30 Finsbury Square London EC2A 1AG

Bankers

HSBC 186 Broadway Didcot OX11 8RP

Solicitors

Pinsent Masons Veale Wasbrough Vizards LLP 30 Crown Place Narrow Quay House Earl Street Narrow Quay London Bristol EC2A 4ES BS1 4QA

Jisc is a company limited by guarantee and a charity registered in England and Wales. In August 2024, our application to be registered as a charity in Scotland was approved; as of 2024/25, we will also fall under the regulatory authority of the Scottish Charity Regulator (OSCR).

We operate under bespoke Articles of Association .

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Executive leadership team

The following members of the executive leadership team are responsible for managing the day-to-day activities of the charity:

activities of the charity:
Name Role
Heidi Fraser-Krauss Chief executive officer
Nicola Arnold Chief financial officer
Alice Colban Deputy chief executive and chief operating officer (company secretary)
Jayne Davies Managing director, customer and sector enablement
Liam Earney Managing director, higher education and research
Robin Ghurbhurun Managing director, further education and skills
Steve Masters
(until 31 January 2024)		 Chief technology officer
Joy Palmer
(from 1 February 2024)		 Interim chief technology officer
Rob Philpotts Chief data officer
Andrew Wood Chief of staff

Membership

Our Articles of Association allow for two classes of membership: representative and institutional.

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VAT- exempt Cost Sharing Group (CSG)

With Jisc institutional membership comes automatic membership of the VAT-exempt Cost Sharing Group (CSG). Following a ruling by the Court of Justice of the European Union and subsequent technical discussions with HMRC, the CSG will be closed. No charges have been made through the Group for a year or more. During 2024/25, we will make the required changes to Jisc’s ownership structure to remove institutional members as a category of member and return the ownership structure to its original form, leaving the Association of Colleges (AoC), GuildHE and Universities UK (UUK) as members (“owners”) of Jisc, each holding a third of the voting rights.

Role of members

Until the changes are applied to our membership structure, institutional members continue to be represented by the most appropriate representative member (AoC, GuildHE or UUK) to act on their behalf in governance matters of Jisc. Our representative members therefore also act in the interests of their nominating members.

The liability of each member (both institutional and representative) is limited to a maximum of £1. This liability will apply for the duration of membership of the charity and for one year beyond the end of membership.

Our members have the rights afforded to them by the Companies Act 2006. Each representative member is the same class of member, each having one vote on resolutions proposed to

members. Representative members also have one vote on behalf of all the institutional members they represent. Further information on the types of decision that can be proposed to members and the thresholds to pass resolutions is included in our Articles of Association.

Group structure

Jisc is the parent company of the Jisc Group. Jisc Services Limited (JSL) is an active wholly owned subsidiary company in the group, along with Jisc International Apac Pte Ltd (a company limited by shares registered in Singapore) which provides technical support services within the Asia and Pacific region for the Jisc Group.

A number of other subsidiary companies, which joined the group as a result of mergers, or have reached the end of their useful life, have been closed or are in the process of being closed.[2] All UK Jisc Group companies are registered in England and Wales and operate under bespoke Articles of Association. Each company prepares its own Annual Report and Financial Statements. We also hold equity shares in other companies. Further information can be found in Note 16 to the financial statements.

2 These are HESA, Jisc Commercial Limited, and Jisc Liberate Managed Services Limited.

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Funding model

We receive core funding from the funding bodies responsible for HE and FE across the UK. These are:

A subscription fee is also paid by HE institutions across the UK and by FE colleges in England. The chart below shows the different elements of our core funding and subscription income across Jisc and HESA in 2023/24:

----- Start of picture text -----
Core funding and subscription income 2023/24
£'000
Research England 27,621
OfS 15,200
DfE England 15,021
SFC 8,123
DfE Northern Ireland 2,268
HEFCW 2,041
DfES Wales 1,299
HESA subscriptions 12,841
HE subscriptions 8,783
FE subscriptions 4,088
----- End of picture text -----

This income is analysed further in notes 4 and 5.

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Governance and management

Trustees

The trustees of the charity who were in office during the year and up to the date of signing the financial statements were:

Trustee name
Role
~~DSSS~~
~~ee~~		 Trustee name
Role
~~DSSS~~
~~ee~~		 Trustee name
Role
~~DSSS~~
~~ee~~		 Trustee name
Role
~~DSSS~~
~~ee~~
Professor Paul Boyle
(Chair)		 Vice-chancellor, Swansea University Appointed by AoC,
GuildHE and UUK
Dr David Ashton Interim pro vice-chancellor (strategy) Kingston
University London		 Nominated by our
core funders
Simon Bolton Trustee
Joanna Campbell Principal and chief executive, Dumfries and
Galloway College
David Chalmers Trustee
Professor Andy Collop Vice chancellor, principal and chief executive,
Hartpury University and Hartpury College		 Nominated by
GuildHE
Heidi Fraser-Krauss Chief executive, Jisc
Debra Gray (Deputy chair) Principal and chief executive,Hull College Nominated by AoC
Professor Sir Chris Husbands Vice-chancellor, Sheffield Hallam University
(until 31 December 2023)
Robert McWilliam
(until 29 February 2024)		 Trustee
Professor Raheel Nawaz Pro vice-chancellor (digital transformation),
(from 1 January 2024) Staffordshire University
Professor Helen O’Sullivan Provost and deputy vice-chancellor, University
(from 1 January 2024) of Chester
Dr David Pilsbury Chief development officer, Oxford international
Education Group
Professor Lisa Roberts Vice-chancellor and chief executive, University
of Exeter		 Nominated by UUK
Fiona Salzen
(from 29 February 2024)		 Trustee
Ashley Wheaton (Deputy chair) Principal, University College of Estate Nominated by
(until 31 December 2023) Management GuildHE

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Charity Governance Code

This report explains our approach to governance in line with the principles and recommended practice in the Charity Governance Code (“Code”).

Organisational purpose

We have a three-year strategy which is reviewed annually and strategic targets for each year are set.

A statement on the section 172 responsibilities of trustees of a charitable company (in accordance with the requirements of the Companies Act 2006) can be found in the Stakeholder engagement section of this report. All decisions we make are in the context of meeting the needs of our members. We track member satisfaction in a number of ways, including surveys of leaders in HE and FE, which are conducted annually.

One of our key risks is reduction of income from funders and members. Our strategy supports this through ongoing efficiencies and by prioritising investment and the development of products and services based on the needs of our members, their staff and students.

We recognise our broader responsibilities towards communities, stakeholders, society and the environment. One of our strategic priorities is to strive to make a positive global impact with sustainability noted as a key priority. In 2023 the board agreed that we should move towards a broader sustainability approach, mapped against the UNSDGs. Our first annual sustainability report was published in November 2023. Further information about our environmental activities can be found in the Streamlined Energy and Carbon Reporting section of this report.

Leadership

Our board and individual trustees take collective responsibility for decisions. Our chair provides leadership and ensures that our strategy and priorities are clear. We have agreed guiding principles as key drivers of how the organisation should operate.

The roles of the board, chair and deputy chair are clearly defined. Proper arrangements are in place for appointments, including a planned and delivered induction process with follow-up sessions as required. The board also participates in the appointment process for executive leadership team (ELT) appointments where required. Proper arrangements are in place in the organisation for the management of senior leaders. Performance reviews of the chief executive and ELT including any resulting pay awards are overseen by the Remuneration committee.

We have two subsidiary companies. The relationship with our UK subsidiary is governed by a Management and Supervision Agreement (which includes a list of matters reserved for the Jisc board) and an Intra-Group Operating Agreement (which describes the services that we provide to the subsidiary and vice-versa). An annual business plan and budget for the subsidiary company is prepared and agreed by us and we receive regular progress reports. Each of our committees (Audit and risk management, Finance and treasury, Nominations and governance, Remuneration) operate across all companies in the Jisc Group.

We recognise and respect differing views among trustees and constructive challenge is welcomed by senior leaders. A supportive relationship exists between the board and senior leaders based on openness and trust, with appropriate challenge where necessary. This is evident from the results of an external board effectiveness review conducted in Autumn 2023 which reflects our positive views about the relationship.

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The time commitment expected of us is detailed during the recruitment process and in the appointment documentation. Additional time commitments because of involvement in committees or other activities are outlined when these roles are appointed. Attendance of trustees and committee members at meetings is recorded and the statistics reported to the Nominations and governance committee for review annually.

Five board meetings were held in the reporting year 1 August 2023 to 31 July 2024. Attendance of trustees at board meetings was as follows:

Trustee name Eligibility to attend
(based on term of
office)		 Actual
attendance
Professor Paul Boyle 5 4
Dr David Ashton 5 5
Simon Bolton 5 4
Joanna Campbell 5 2
David Chalmers 5 3
Professor Andy Collop 3 1
Heidi Fraser-Krauss 5 5
Debra Gray 5 5
Professor Sir Chris Husbands 5 4
Robert McWilliam 3 2
Professor Raheel Nawaz 3 1
Professor Helen O'Sullivan 3 3
Dr David Pilsbury 5 5
Professor Lisa Roberts 5 3
Fiona Salzen 2 2
Ashley Wheaton 2 1

Integrity

We act with honesty, trustworthiness and care, and support Jisc’s guiding principles. We abide by the Nolan Principles of public life – selflessness, integrity, objectivity, accountability, openness, honesty and leadership. Collectively, we are independent in our decision-making to support our purpose and no one person or group has undue power or influence.

A register of interests is maintained for trustees and updated when new trustees are appointed and as changes are reported. A full review is undertaken annually. The declaration of interests is a standing item at the beginning of each board meeting.

Along with our guiding principles, a number of policies exist that provide guidance to staff about expected values and behaviours, including Conflict of Interest, Gifts and Hospitality, Anti-Bribery and

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Corruption, Anti-Fraud and Whistleblowing. All staff must complete Anti-Bribery and Corruption, Fraud awareness, Whistleblowing and Modern Slavery awareness training through our online training platform. We have a defined process for our response to actual or suspected fraud and a detailed approach to responding to a whistleblowing report, including how to address and respond to anonymous reports.

The nature of our business, and our relationship with UK HE and FE through institutional membership and the delivery of services, means that we have a relationship with the employing organisations of several trustees. However, this is reflective of the membership structure of the organisation and the purposeful approach to ensuring our activities are guided by the customers we exist to serve and does not affect the independence of trustees. In discharging our responsibilities, we act solely in the interests of the charitable company - we are not the delegates or representatives of any organisation or nominating body. We, with the exception of our chief executive, are all considered to be independent non-executive directors.

Our Safeguarding policy reflects the steps that we take as an organisation to ensure a safe working environment for staff and sharing clear guidance on how to raise any concerns.

We have evolved our Corporate Social Responsibility (CSR) strategy into a broader sustainability programme, focusing on the UN SDGs (discussed further under Organisational purpose in the Governance and Management section and in our annual sustainability report ).

Decision-making, risk and control

We are ultimately responsible for the charitable company’s system of internal control and for reviewing its effectiveness. Our internal control system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance of effectiveness. Internal control processes include:

Our role as the board can be found on our website. We have four standing committees which operate across the Jisc Group. Our Articles of Association define areas of responsibility that we cannot delegate to a committee. Each committee operates under terms of reference that we have agreed and which are reviewed annually.

The terms of reference and committee memberships can be found on the Jisc website. Each committee is chaired by a trustee with at least one further trustee as a member of each committee. The

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appointment of committee chairs and members falls under the auspices of the Nominations and governance committee. Each committee reports to the board regularly.

We review key documents such as the risk appetite, financial Scheme of Delegation, Reserves policy and Treasury policy regularly following detailed discussion by the appropriate committee. A Governance Scheme of delegation is in place and reviewed annually to ensure clarity of decision-making across the governance structure.

We receive reports at each meeting on progress against our strategic targets, our financial performance and key product areas. We have responsibility for overseeing risk management within the organisation with the Audit and risk management committee having more detailed oversight.

Our high-level strategic and operational risk registers are underpinned by risk registers in key areas of the business. These are reviewed regularly to check progress of mitigating actions and position of early warning indicators. Details of the key risks to the successful delivery of our strategy can be found in the Principal risks and uncertainties section.

Risk management training and supporting documentation is available to all staff. A risk management system is in use across the organisation, which is also used for tracking progress against organisational targets as well as actions arising from internal audits.

We consider the risk appetite annually. A well-managed risk appetite is encouraged, tailored to each area of our activity, which supports the development and delivery of new services to meet the needs of our customers through our research and development work, while ensuring that we maintain oversight for parts of the business with less tolerance for risk. The risk appetite was reviewed and updated in June 2024.

Each year, the Audit and risk management committee receives an assurance map for a series of planned audits, approve the annual internal audit plan and receive reports of all internal audits undertaken by the Internal audit team.

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Audit and Risk Management opinion 2023/24

Based on the work of the Audit and risk management committee, internal audits conducted during the reporting year and in the context of materiality:

Audit and risk management committee opinion 2023/24

Having taken account of:

It is the opinion of the Audit and Risk Management committee that:

Board effectiveness

We usually meet five times a year as a board including a strategy-focused awayday. Our meetings throughout the year, including strategy sessions, have been held in person at our offices with the option to join online for those unable to travel. We have a clear agenda at every meeting and a forward look agenda plan. Additional items can be added to future agendas at the request of trustees.

Our trustees include senior leaders working in UK further and higher education and individuals with the business skills and expertise that help shape Jisc for the future. Individuals are drawn from across the UK to provide an appropriate balance of experience from the respective countries and from the sectors we serve, and in accordance with our defined skills set for trustees.

Trustees are permitted to access independent professional advice should they feel it is necessary to support the discharge of their duties as a trustee. There have been no requests for such advice in the reporting year.

Our chair is appointed by our representative members (AoC, GuildHE and UUK). The role of chair is separate to that of chief executive. A deputy chair is also appointed by the board on the recommendation of the Nominations and governance committee.

As at 31 July 2024, the composition of the board was as follows:

~~(a~~ Chair – appointed by AoC, GuildHE and UUK ~~LL~~ One trustee nominated by AoC One trustee nominated by GuildHE One trustee nominated by UUK One trustee nominated by our funders ~~CL OCOCOCOCOCOddE OO—O—OSCSC“CSCSC‘“‘#SC Ld~~ Up to eight trustees appointed by the board Jisc chief executive*

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The skills matrix for trustees is reviewed when a vacancy arises to identify the skills and experience that we wish to see in new trustee appointments. Trustees are appointed based on merit for a maximum term of six years – a three-year initial term and an extension of up to a further three years subject to a positive performance review and subject to the agreement of appointing organisations where this applies. In exceptional circumstances, an extension of a further year is permitted. Four new trustees were appointed in early 2024. Details of all trustees appointed can be found in the Governance and management section.

Trustees receive an induction when taking up a role with Jisc. This includes the provision of background and supporting documents relating to the Jisc Group and resources from the Charity Commission. Since our registration as a charity in Scotland in August 2024, resources from OSCR (the Scottish charity regulator) are also shared with trustees. Induction meetings are held with the chief executive and members of the executive leadership team to give a detailed overview of our activities. Inductions are also held when a trustee is appointed to any of our board committees.

A board and committee effectiveness review is conducted each year, which also includes a survey and discussions with trustees and committee members about their contributions to the role of the board or committee. This allows an opportunity for trustees and committee members to reflect on the board or committee environment and how this can develop further to facilitate effective and constructive challenge during discussions. The recommendations arising from the reviews are considered and agreed by the Nominations and governance committee and the relevant board or committee. A progress report is provided to the Nominations and governance committee part-way through the year to ensure the executive team is held accountable for the delivery of agreed recommendations. An external review was undertaken in autumn 2023, which concluded that the board was operating effectively and recommendations made were to help us to thrive. Those recommendations have been implemented.

Equality, diversity and inclusion

We are committed to increasing diversity within the governance structure, both at board and executive level. Our board and committee diversity policy outlines our intention of improving diversity on the board, recognising that a mix of skills, knowledge and experience with different perspectives and insights builds a strong foundation for well-informed decision-making and as a consequence, better performance in support of our stakeholders. The policy was reviewed by the Nominations and governance committee in June 2024 and found to remain appropriate.

Candidates from diverse backgrounds are sought and encouraged whenever a vacancy for a trustee or committee member arises, including when an appointment is the result of the nomination by our funders or representative members.

We are committed to removing, reducing or preventing obstacles to people becoming trustees. One of our guiding principles is ‘Always inclusive’ which focuses on working collaboratively, celebrating a culture of diverse minds and being actively inclusive and open. We receive regular updates on our equality, diversity and inclusion activities within the organisation.

As of 31 July 2024, our board comprised 14 trustees with 36% identifying as a woman (2023: 26%), 57% identifying as a man (2023: 67%) and with 7% preferring not to say. The ethnicity of trustees was 72% White British, 7% White English, 7% White Scottish, 7% Asian or Asian British-Pakistani and 7% preferring not to say.[3] We do not have any disabilities declared by trustees.

3 Our diversity data collection form was updated in 2023 to reflect broader lists of possible answers.

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Our ELT comprises the chief executive officer and executive directors. The gender distribution is 56% identifying as a woman and 44% identifying as a man. The average age among the executive leadership team is 54 years. The gender distribution of senior leaders (SLT - those reporting to executive leadership team members) is 42% identifying as a woman, 50% identifying as a man, 6% have not disclosed and 2% have indicated that they prefer not to say. The average age is 48 years.

100% of the executive leadership team and 85% of senior leaders have provided ethnicity data. Of those providing information, 11% of the executive leadership team have indicated a non-white ethnicity and 4% of senior leaders have indicated mixed heritage ethnicity. 13% of senior leaders have declared a disability.

Further information on our internal Diversity and inclusion strategy can be found in the Internal organisation section.

Openness and accountability

Further information about engagement with our members can be found in the stakeholder engagement section of the strategic report. Communicating effectively with our key stakeholders is central to our business and drives our approach to delivering the right solutions and empowering communities in accordance with our strategy.

Regular reporting is provided to each of our core funders to describe our activities and how we have supported the priorities of our funders. Meetings of our Funders and owners group are held three times annually, which consists of representatives from each of our funders and representative members. The meetings are chaired by the Jisc chair and attended by senior Jisc leaders.

We receive reports based on feedback from member organisations or other stakeholders. We discuss lessons learned as appropriate in the context of our strategic role.

In the year to 31 July 2024, remuneration has been paid to the chief executive and the chair. This remuneration is paid for these additional roles undertaken on behalf of Jisc and not in their capacity as trustees. The details of the remuneration are shown in note 12 of the Financial Statements. The level of remuneration has been approved by the Remuneration committee and Jisc’s Articles of Association give authority for this payment. No other trustees are remunerated.

The remuneration of the executive leadership team is set within a framework agreed by the Remuneration committee. Details of this remuneration can be found in note 12 of the Financial Statements.

A travel and subsistence policy is available for trustees and committee members. Travel and subsistence costs are refunded to trustees and committee members on submission of a claim with supporting receipts and payment is subject to compliance with the policy. These costs relating to trustees’ expenses are included in note 12 of the Financial Statements.

Trustee indemnity insurance provides insurance cover for trustees against claims which may arise from their legitimate actions as trustees. Insurance is in place for all trustees through the course of their appointment. There have been no claims against this insurance in the reporting year.

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Streamlined energy and carbon reporting (SECR)

In accordance with The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, we present our greenhouse gas emissions and energy use report covering the 2023/24 financial year. Autumn 2020 was the first year that we produced a SECR for the year ending 31 July 2020. In this report, 2022/23 has been used as comparison year. Direct comparison cannot be made on refrigerants or upstream leased assets as additional data has been collected this year, increasing the accuracy of our carbon reporting.

We have continued to expand our data collection to develop a more complete and accurate picture of our GHG emissions. 2023/24 will be used as a new baseline due to the increase in data collected across scope 1 and scope 3 leased assets. We are verifying our data in line with the ISO 14064 standard.

Our full carbon footprint report can be found in our annual sustainability report.

Greenhouse gas emissions
and energy use data for
period 1 August 2023 to 31
July 2024		 Current reporting year
2023/24		 Comparison reporting
year
2022/23
UK and offshore
Energy consumption used to
calculate emissions (kWh)
(all facilities and data
centres)		 2,446,598.97 1,364,797.1
Scope 1 emissions
Naturalgas(tCO2e)
~~eG~~		 7.20
~~eG~~		 8.60
~~eG~~
Refrigerants(tCO2e)
~~a~~		 0
 Data not available
Scope 2 emissions
Purchased electricity
(location based) (tCO2e)
~~ee~~		 13.41
~~ee~~		 15.32
~~ee~~
Scope 3 emissions
~~ee~~
Business travel in employee
owned vehicles
~~ee~~		 74.45
~~ee~~
~~e~~		 80.89
~~ee~~
~~ee~~
~~ee~~
Other business travel (air, rail
and hotel stays)
~~e~~		 557.71
~~e~~~~e~~
~~e~~		 427.98
~~ee~~
~~e~~
~~ee~~
Employee commuting
~~a~~		 69.98
~~e~~
~~a~~		 68.96
~~ee~~
~~a~~
Homeworking
~~a~~		 517.78
~~a~~		 475.48
~~a~~
Wastegeneration
~~a~~
~~ee ee~~		 0.17
~~a~~
~~ee~~		 0.33
~~a~~
~~ee~~
Transmission and
distribution losses
~~ee ee~~
~~a~~		 44.77
~~ee~~
~~G~~		 24.46 (partial)
~~ee~~
Upstream leased assets
~~ee ee~~
~~a~~		 487.04
~~ee~~
~~G~~		 267.29(partial)
~~ee~~
Downstream transportation
~~a~~
~~OCS~~		 7.01
~~G~~
~~OCS~~		 4.05
~~OCS~~
Total gross emissions tCO2e
~~a~~		 1779.52
~~a~~		 1373.36
~~a~~

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Intensity ratio: tCO2e per £m
of income		 1779.52 tCO2e / £149m =
11.94 tCO2e per £m of
income		 1373.36 tCO2e / £146m =
9.41 tCO2e per £m of
income

Changes in methodology and emissions

To align our carbon reporting and remain transparent in our emissions, we include additional data not required in the SECR; this includes hotel stays (under other business travel), homeworking, waste generation, transmission and distribution losses, upstream leased assets and downstream transportation.

This year we have continued to expand our data collection to report emissions from all the data centres in which we lease space, meaning emissions from upstream leased assets have increased. As an organisation driving digital transformation we acknowledge that our use of data centres may continue to increase our carbon emissions. We use Renewable Energy Guarantees of Origin (REGO) for one of our largest data centres in which we lease space and will explore options for further renewable energy use in future. We have also measured emissions from refrigerant gases this year.

We have seen an increase in travel via train and air in 2023/24. There is an increase in emissions from homeworking due to an 8% increase in staff numbers; this is an estimated figure based on averages that we cannot control.

Energy efficiency action

We have made the commitment to be net zero by 2040. This includes emissions in scope, including gas, electricity, business travel and staff commuting. We will be net zero across our remaining scope 3 emissions, including our supply chain, transport and distribution, waste and electrical use of our leased assets by 2050. We plan to put interim targets in place to ensure sufficient progress is made and will work towards aligning with the Science Based Target Initiative in future. We have a published net zero roadmap which outlines our approach to reducing emissions and sets out our plans for future projects. This year we have undertaken the discovery phase of our sustainability impact and monitoring programme, and aim to publish our new sustainability strategy in the coming months.

Environmental considerations and energy efficiency are a priority for all refurbished offices, including reusing and recycling furniture. Our office at Portwall Lane, Bristol includes features such as repurposed furniture from our previous office and motion-controlled lighting to save unnecessary electricity. We produce our own green energy from onsite solar power, this year generating 14,481kWh from August 2023 to July 2024. Our building management system tracks real time data on energy and water consumption across different areas and systems within Portwall Lane. Automatically controlled lighting, heating and cooling means we can increase efficiencies and optimise usage where areas of the building may be used or not used. Furthermore, in June we commissioned an energy audit of the office to identify further energy efficiency and decarbonisation measures to help achieve our net zero target. We will schedule this work as part of our sustainability programme.

Our electronic waste from offices is collected and resold or reused, resulting in zero electronic waste to landfill. In 2023/24 we recycled 1,315 electronic items and sent 1,255 old pieces back into circulation for a new life.

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Our hybrid approach to work means we have reduced the emissions we produce from commuting by using video conferencing instead of meeting face to face. We encourage staff to use public transport wherever possible. We operate a cycle to work scheme and provide cycle racks and shower facilities to encourage and support cyclists. We also have an electric car scheme as part of our benefits package. In 2023/24, 83% of business travel journeys were done by rail and 59% of commuting was undertaken by public transport or active travel methods.

Further information on how we are working towards the UN SDGs and climate action, including working with our members and the FE and HE sectors, can be found in our annual sustainability report.

Methodology

Emissions
category		 Data sources and assumptions
Scope 1
Natural gas •
Location-based method
•
kWh from invoices obtained by facilities
•
UK Government conversion factor for UK natural gas used
•
Average from previous months used on one month where there was
inaccurate billing
Refrigerants •
Location-based method
•
F-gas report obtained from maintenance company, which confirms that
no gas was topped up in the reporting year
•
UK Government conversion factor for specificgas used
Scope 2
Purchased
electricity		 •
Location-based method
•
KWh from invoices and BMS’ obtained by facilities
•
UK Government conversion factor for UK electricity
Scope 3
Transmission and
distribution losses		 •
Average data method
•
Total kWh from invoices obtained by facilities
•
UK Government conversion factor for UK electricityT&D used
Waste •
Waste type-specific method and average data method
•
Mass of waste for each waste treatment method obtained by facilities
from waste collection companies
•
Waste data for Cheltenham, London and Oxford offices were not available
•
Mass of WEEE waste from invoices obtained from WEEE recycling partner
•
UK Government conversion factor for each waste type used
Business travel •
Distance-based method
•
Number of miles travelled via personal vehicle use, rail and air obtained
from expenses system and our travel provider
•
Hotel bookings obtained from our travel provider
•
UK Government conversion factors for each mode of transport, haul
length and booking class used. Conversion factors included indirect
effects of flights
•
Where country-specific hotel conversion factors were unavailable, nearest
locationgeographicallyused

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Emissions
category		 Data sources and assumptions
Employee
commuting		 •
Distance-based method
•
Number of miles travelled by staff per transport type per month obtained
from staff commuting survey
•
UK Government conversion factors for each mode of transport used
•
Emissions multiplied by 12 to establish emissions for the year. 44%
surveyresponse rate. Extrapolated for number of staff as of 31 July2024
Homeworking •
Annual working hours based on 35-hour week and 39 days off annually
•
UK Government conversion factors for homeworking (office equipment
and heating) used
•
Workingfrom home estimated at 75%
Upstream leased
assets		 •
Asset-specific method and average data method
•
KWh from invoices obtained by facilities and data centre managers
•
Data for Lumen House was not available so usage was estimated using
2021/22 data
•
UK Government conversion factor for UK electricity used
•
Average fromprevious months used where data not available
Downstream
transportation		 •
Spend-based method
•
Spend on courier and freight services obtained from procurement
•
Conversion factor for UKpostal and courier services used via Climatiq

Financial policies and risks

Financial policies

A number of financial policies are in place for the Group:

Both policies were reviewed by the Finance and treasury committee in 2024 and approved by the board.

Credit risk

The Group’s activities are primarily with state-funded education and research bodies and, as such, have minimum credit risk.

Liquidity risk

In its cash management, we ensure that there are sufficient cash balances to meet the day-to-day needs of the organisation. Our reserves policy states that we should hold four months of operating costs in undesignated reserves (see financial performance and strategy section).

Grant-making policies

We provide grants to organisations to provide services on our behalf or to participate in projects. Grants are managed through specific agreements, which set out the conditions of the grant, including reporting requirements and when and how disclosure will happen. The agreement also outlines our responsibilities.

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Grants are usually disbursed in instalments to ensure that agreed timings and results are being met and managed. Our staff monitor and evaluate progress throughout the period of the grants. The nature of these activities will depend on the size and complexity of the grant and the perceived level of risk.

Payment practices

In accordance with regulations in the Small Business, Enterprise and Employment Act 2015, we have prepared and submitted payment practices reports for each six-month period for Jisc and its subsidiary Jisc Services Limited.

Internal organisation

HR strategy

The first year of our current HR strategy (2023 to 2026) is complete and has seen significant progress in a number of areas. The strategy comprises six themes to ensure we find and keep great people with the right skills both now, and in the future, to ensure strategic success and customer service excellence. We continue to develop a culture and employee experience our employees recommend, one where people choose to remain at Jisc. This year we have agreed our employee value proposition – we want Jisc to be a place where you can:

Our latest employee survey data shows we are making good progress: 79% of employees recommend Jisc as a great place to work. Our wellbeing, inclusion and flexibility questions have all increased this year and now average over 80% agreement. Our learning and development and career development scores have remained the same, demonstrating the need to build on our existing offer. Following a trial in 2022/23, we have now made our ‘internal first’ recruitment approach permanent. This means almost all roles are advertised internally first, and in 2023/24 36% of our vacancies were filled internally, demonstrating how our employees can develop their careers in Jisc.

Having great managers is crucial to our people success. This year we completed our leadership programme and were delighted that our programme was shortlisted for an award with the Institute of Leadership and Management. Our new programme ‘Lead at Jisc’ supports new leaders to learn alongside peers and internal leaders while taking advantage of world-class online resources. We are seeing results – this year the scores on all our manager questions increased on our employee survey. Our managers now average at least 83% agreement on all our different areas of management. Our masterclass and manager briefing series, and our thriving manager community, plus an increasing number of toolkits, allow our managers to stay connected and focus on their skills and knowledge development.

In 2023/24 we have particularly focused on recruitment and onboarding activity. HR have successfully implemented a new recruitment system and reviewed several processes with managers to ensure we are delivering a great, inclusive candidate experience as efficiently as possible.

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Our diversity and inclusion and anti-racism strategy is delivering on its aims to ensure our workforce becomes more diverse and our culture more inclusive. 71% of employees have disclosed their data, enabling us to further understand the diversity of our workforce and any gaps. Key achievements in 2023/24 include:

In line with our commitment to an inclusive and diverse workforce, disabled employees have equality of access to training, development and progression. Support is also given to encourage return to work and retention of newly disabled employees, providing where required a period of rehabilitation, support and training, working with expert partners and our Occupational Health service when required. 14% of employees have disclosed a disability.

As well as access to a well-resourced learning and development offer, employees have access to a wide range of benefits. Particular emphasis is placed on benefits linked to financial and mental wellbeing, to ensure wellbeing is prioritised. This includes discounts and salary sacrifice schemes (including electric cars), enhanced sick pay, mortgage services, a healthcare cash plan (a very popular scheme to allow employees to claim back the costs of everyday healthcare), total mental health support (giving access to excellent mental health services), enhanced annual leave and volunteering days, and the opportunity to buy additional annual leave. Total reward statements are published twice a year showing employees how we invest in them and the value of all their benefits.

In 2024/25 we will be focusing on reviewing our culture and guiding principles, ensuring we are planning for the workforce of the future and exploring opportunities with AI, particularly with regard to efficient and effective processes.

Workforce data

Our overall headcount has increased from 1,247 to 1,322 at 31 July 2024. Turnover has dropped significantly over the last 12 months, from 14% to 6%. 4% of employees are on fixed term contracts, compared to 7% in 2023.

This year both our median and mean gender pay gaps have reduced by 1% each to 15.6% and 13.2% respectively. This year we have worked with Close the Gap to better understand what’s driving our gender pay gap and what action we can take. Gendered pay inequalities continue to exist within Jisc, although our workforce is progressively becoming more balanced, and the pay gap is narrowing. Despite having a woman CEO and a nearly gender balanced executive leadership team, the overrepresentation of women in

4 Employee networks include Accessibility matters, Anti-racism and racial equality, Faith and ethical beliefs, Internationals at Jisc, LGBTQIA+, Men’s health and wellbeing, Menopause, Neurodiversity, Parents and carers, Women, and Youth

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lower pay roles across the organisation and within job families persists. The tendency of women to be found in the lower deciles of the organisation, and the overrepresentation of men in the highest, combined with the wide salary range within the highest deciles, is likely to be a key driver of our gender pay gap. By getting a deeper understanding of what is driving our gender pay gaps we know that our long term strategy of growing our own talent into senior technical roles is beginning to show signs of progress. For example our internal first approach to recruitment is helping women to progress their careers in Jisc.

Equalities information is held on our HR system in accordance with GDPR principles. 71% of employees have disclosed their diversity data.

Diversity data disclosure has continued to increase overall as we have progressed with our Diversity and Inclusion strategy and anti-racism initiatives. The largest disclosure increase has been ethnicity data; during February 2022 it was 41%, whereas it now stands at 71%, seeing a substantial 30% increase. Building trust has been critical to this strong, upwards disclosure trend and we will seek to continue it with authentic and relevant initiatives.

Ethnicity

Diversity varies across teams. Further details of ethnic diversity are shown in the table below. Of those who provided a response, the number of staff recording themselves as White is nearly 62% across Jisc.

Asian or Black or Mixed Not provided Other Not known or Not known or
White
Asian British Black British heritage prefer not to
say
6.43% 4.24% 2.59% 21.88% 1.25% 1.65% 61.96%

Religion

Across the organisation, 46% of staff report that they hold a religion or belief, spreading across 17 religions or beliefs. 25% indicate that they are of no religion, 25% did not disclose and 4% prefer not to say.

Age and gender

We continue to employ people across a broad age group, with the age of new starters over the past year ranging between 19 and 67, with the average age for a new starter being 37 years old.

Compared to last year, the proportion of women in post has increased, from 41.3% at the end of July 2023 to 43.5% at the end of July 2024.

Employees disclosing gender identity has remained at 86%, this employee data contributes to giving Jisc a clearer picture of its workforce.

Sexual orientation

69.4% of staff have disclosed their sexual orientation and 5.4% preferred not to say. The majority of staff (62.3%) indicate that they are heterosexual; 6.27% identify as lesbian, gay or bisexual.

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Bisexual Gay Heterosexual Lesbian Not Other Prefer not to Prefer not to
Unknown
provided say
3.69% 1.65% 62.35% 0.94% 24.86% 0.78% 5.41% 0.32%

Pay governance

The Remuneration committee considers the annual pay review proposals for all staff across the organisation and the resulting overall level of increase in the salary bill. It does this in the context of business performance and the need to ensure good pay governance to ensure money from funding is spent and focused in the right way. The Remuneration committee reports to the board, providing sufficient detail to enable the board to assure themselves that rigorous, fair and defensible processes have been undertaken in all reward decisions as overall responsibility remains with the board.

We have an annual performance management cycle, with managers having conversations with their teams about their performance throughout the year, with quarterly reviews to drive better and more frequent conversations.

We have a set of guiding reward principles that include a new single pay framework which covers all staff except the executive leadership team. The salaries of the executive leadership team are determined by the Remuneration committee.

A variable bonus scheme is in place for members of the executive leadership team, and there are fully governed commission schemes for account managers and other sales employees. These schemes are reviewed annually to ensure alignment to business priorities and fully linked to performance. A companywide performance bonus is dependent on strategic targets being achieved as is approved by the Remuneration committee.

Engagement and communication

Ensuring effective two-way communication and good internal communication is in place is key to our success. Our employee voice routes are:

In addition, a number of internal communications channels and initiatives ensure employees are able to stay up to date with company performance and operational arrangements. These include a fortnightly employee briefing, a monthly ‘all hands’ meeting, updates from executive team members, our intranet, our annual staff conference and targeted emails, briefings and consultation processes.

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Responsibilities of the board in relation to the Trustees’ report

The trustees (who are also directors of Jisc for the purposes of company law) are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the Group and of the incoming resources and application of resources, including the income and expenditure, of the charitable Group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's and group’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the trust deed. The trustees are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees confirm that:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Appointment of independent auditors

Grant Thornton UK LLP are deemed reappointed as our external auditor pursuant to section 487 of the Companies Act 2006.

The strategic report and trustees’ report have been approved, authorised for issue and signed on behalf of the board by:

Professor Paul Boyle, Jisc chair

29 November 2024

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Independent auditor's report to the members and trustees of Jisc

Opinion

We have audited the financial statements of Jisc (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 July 2024, which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102; The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts. 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 group and parent 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

We are responsible for concluding on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s and the parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern.

In our evaluation of the trustees’ conclusions, we considered the inherent risks associated with the group’s and parent charitable company’s business model including effects arising from macro-economic uncertainties such as the cost of living crises, we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the group’s and parent charitable company’s financial resources or ability to continue operations over the going concern period.

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.

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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 group’s and parent charity’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 directors 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’ Report and Financial Statements, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ Report and Financial Statements. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements 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:

Matter on which we are required to report under the Companies Act 2006

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report included in the Trustees' Report.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

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Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement set out on page 38, 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 group and the parent 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 group or parent 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

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Our audit procedures included:

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

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Use of our report

This report is made solely to the charitable company's members and trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006, Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and 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 and trustees 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 and trustees as a body, for our audit work, for this report, or for the opinions we have formed.

James Bird BSc FCA

Senior Statutory Auditor

for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants

London

29 November 2024

Grant Thornton UK LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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Consolidated Statement of Financial Activities (including income and expenditure account) for the year ended 31 July 2024

Note Unrestricted Restricted Total Unrestricted Restricted Restricted
Total
funds funds funds funds funds funds
funds
2024 2024 2024 2023 2023 2023
2023
£’000 £’000 £’000 £’000 £’000 £’000
£’000
INCOME
Donations and grants 4 58,230 13,440 71,670 13,440 71,670 53,358 20,221 73,579
Income from charitable activities Income from charitable activities
5		 25,712 - 25,712 - 25,712 23,746 247 23,993
Income from trading with
members		 5 21,141 426 21,567 426 21,567 18,413 45 18,458
Income from other trading
activities		 5 28,966 - 28,966 - 28,966 27,028 - 27,028
Investment income 6 743 - 743 717 - 717
Other income - - - - 2,149 2,149
TOTAL INCOME 134,792 13,866 148,658 13,866 148,658 123,262 22,662 145,924 22,662 145,924
EXPENDITURE
Expenditure from charitable
activities before USS 77,944 15,669 93,613 94,532 8,850 103,382 8,850 103,382
pension change
USS pension provision change 29 (29,684) - (29,684) - (29,684) (1,700) - (1,700)
Total charitable activities 7 48,260 15,669 63,929 92,832 8,850 101,682 8,850 101,682
Expenditure from trading with
members		 7 45,133 (15) 45,118 19,573 10,692 30,265
Other trading activities 7 22,683 1,332 24,015 17,172 - 17,172
Grants paid 10 137 - 137 (48) 41 (7)
Other gains / (losses) - - - (757) - (757)
TOTAL EXPENDITURE 116,213 16,986 133,199 16,986 133,199 128,772 19,583 148,355 19,583 148,355
Net (expenditure) / income 11/25 18,579 (3,120) 15,459 (5,510) 3,079 (2,431) 3,079 (2,431)
Transfers between funds 21 - - - 5,163 (5,163) -
Other unrealised gains 16 11,636 - 11,636 931 - 931
Net movement in funds for the
year		 30,215 (3,120) 27,095 584 (2,084) (1,500) (2,084) (1,500)
Reconciliation of funds
Total funds brought forward 103,607 8,735 112,342 8,735 112,342 103,023 10,819 113,842 10,819 113,842
Total funds carried forward 133,822 5,615 139,437 5,615 139,437 103,607 8,735 112,342 8,735 112,342

The accompanying notes are an integral part of these financial statements. All results in the year to 31 July 2024 and in the prior year derive from continuing operations. The consolidated SoFA includes all gains and losses for the year and the income and expenditure of the Group.

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Consolidated and Charity Balance Sheets as at 31 July 2024

Group Group Charity Charity
2024 2023 2024 2023
Restated* Restated*
2021 2020 2021 2020
Note £’000 £’000 £’000 £’000
Fixed assets
Intangible assets 14 9,599 12,115 1,255 1,233
Tangible assets 15 24,586 19,827 7,786 7,671
Investments 16 115,284 72,966 140,423 104,855
Total fixed assets 149,469 104,908 149,464 113,759
Current assets
Debtors 17 36,314 37,330 19,157 27,684
Cash and cash equivalents 25 12,137 64,802 3,423 38,936
Total current assets 48,451 102,132 22,580 66,620
Liabilities
Creditors: amounts falling due within one year 18 57,127 63,040 16,264 25,804
Provisions for liabilities 20 1,356 3,322 1,356 3,318
Total liabilities 58,483 66,362 58,483 66,362 17,620 29,122
Net current (liabilities) / assets (10,032) 35,770 4,960 37,498
Total assets less current liabilities 139,437 140,678 154,424 151,257
Provisions for liabilities: amounts falling due
after one year		 20 - 28,336 - 28,167
Net assets 139,437 112,342 154,424 123,090
The funds of the Group / Charity:
Restricted income funds 21 5,615 8,735 5,615 8,735
Unrestricted income funds 22 133,822 103,607 148,809 114,355
Total Group / Charity funds 139,437 112,342 154,424 123,090

The Charity only net surplus for the year was £20,003k (2023 Deficit: £6,202k) – refer to note 27. In the year, charity restricted reserves have been restated to align with those of the group. The accompanying notes are an integral part of these financial statements. The financial statements on pages 45 to 81 were approved and authorised for issue by the board and signed on its behalf by:

Heidi Fraser-Krauss Chief executive officer 29 November 2024 Registered number: 05747339

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Consolidated Cash Flow Statement for the year ended 31 July 2024

2024 2023
Note £’000 £’000
Cash flows from operating activities:
Net cash (used) / provided by operating activities 25 (10,690) 18,957
Cash flows from investing activities:
Interest received 6 743 717
Proceeds from the sale of property, plant and equipment 15 - -
Purchase of property, plant and equipment 15 (10,785) (2,985)
Purchase of intangible assets 14 (691) (2,407)
Sale of investments 16 54,433 -
Purchase of investments 16 (85,675) (192)
Net cash used in investing activities (41,975) (4,867)
Net cash provided by financing activities - -
Net cash acquired - -
Change in cash and cash equivalents in the reporting year (52,665) 14,090
Cash and cash equivalents at the beginning of the reporting year 64,802 50,712
Cash and cash equivalents at the end of the reporting year 12,137 64,802

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Notes to the financial statements

1. Statement of compliance

The Group and individual financial statements of Jisc have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (“Charities SORP”) applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”) (effective 1 January 2019) and the Companies Act 2006.

2. Principal accounting policies

The principal accounting policies applied in the preparation of these consolidated and separate financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

a) Basis of preparation

These consolidated and separate financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). After reviewing the Group's forecasts and projections, the trustees have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its consolidated financial statements.

b) Gift aid

Various Group subsidiaries will make a gift aid donation to Jisc as their parent company. Gift aid donations are recognised when a legal obligation to make the payment exists and are classified as a distribution in the statement of changes in equity. In considering the level of gift aid donation to make, the paying company will consider whether there are sufficiently distributable reserves available and whether the paying company will be able to meet its liabilities as they fall due.

c) Group financial statements

The consolidated financial statements and the consolidated cash flow statement include the financial activities of the charity, and its wholly owned trading subsidiaries Jisc Services Limited and Jisc International Apac Pte. Ltd. Intra-Group transactions and balances are eliminated fully on consolidation.

A separate Statement of Financial Activities (“SoFA”), including the Income and Expenditure Account, for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. Jisc as a standalone company as permitted by FRS102 as a qualifying entity has taken advantage of the available exemption to not prepare a statement of cash flows (section 7 of FRS102 and para 3.17 (d)).

d) Fund structure

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor, such as where funding is for specific projects or is capital in nature. Unrestricted funds comprise those funds which the charity is free to use for any purpose in furtherance of the charitable objects.

Unrestricted funds include designated funds where the trustees, at their discretion, have created a fund for a specific purpose.

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e) Income

Income is recognised in the SoFA when a transaction or other event results in an increase in the Group’s assets or a reduction in its liabilities. Income is recognised when all of the following criteria are met:

Government grants

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the Group has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Performance- related grants that are conditional upon the delivery of a specific level of service are deferred where the conditions have not yet been met.

Income for services

Income for services, including higher education subscriptions, is recognised over the period when the relevant service is provided, or in line with the work being performed, whichever is most appropriate.

Where income is received for a specific activity which is to be delivered in a subsequent financial year, that income is deferred.

Principal versus agent

When the Group acts as the principal in a transaction of goods and/or services, the income is recognised gross and the related expense is recognised within expenditure. Where the Group acts as the agent in a transaction of goods and/or services, the related income and cost are netted off against each other such that the margin is ultimately recognised within income. For licences sold on an agency basis the income is recognised in full as an agency fee at the start of the licensing agreement period in line with the contract structure.

The indications that the Group is an agent in the transaction are usually:

The Chest and Collections licences sold by the Group are considered to be sold on an agency basis and income reported on a net basis. Further detail is shown in Note 5.

Interest income

Interest is recognised as earned.

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f) Expenditure and irrecoverable VAT

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. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to that category of activity within the Group. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged against the expenditure category of resources expended for which it was incurred.

g) Allocation of overhead and support costs

Support costs are those functions that assist the work of the Group but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support Jisc’s projects and activities. These costs have been allocated between commercial trading operations and expenditure on charitable activities.

h) Operating leases

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the SoFA on a straight-line basis over the period of the lease.

i) Lease incentives

Incentives received to enter into an operating lease are credited to the SoFA, to reduce the lease expense, on a straight-line basis over the period of the lease.

The Group has taken advantage of the exemption in respect of lease incentives on leases in existence on the date of transition to FRS 102 (1 August 2014) and continues to credit such lease incentives to the SoFA over the period to the first review date on which the rent is adjusted to market rates.

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j) Intangible assets and amortisation

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is calculated, using the straight-line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful lives, as follows:

Amortisation is charged to the SoFA.

Where factors, such as technological advancement or changes in market price, indicate that residual value or useful life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances.

The assets are reviewed for on an annual basis if the above factors indicate that the carrying amount may be impaired.

Costs associated with maintaining computer software are recognised as an expense as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the Group are recognised as intangible assets when the following criteria are met:

Other development expenditures that do not meet these criteria are recognised as an expense as incurred.

k) Tangible fixed assets and depreciation

All assets are capitalised and recorded at historic cost including any incidental costs of acquisition. Where appropriate, provision has been made for impairment in the value of tangible fixed assets.

Depreciation is charged on a straight-line basis to write off the cost of the tangible fixed assets over their estimated useful life. Items with a total cost of less than £25,000 are expensed in the period in which they occur.

Repairs, maintenance and minor inspection costs are expensed as incurred.

Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the SoFA.

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l) Investments

Investments in subsidiaries and associates are stated at cost, less provision for impairment.

An investment in a jointly controlled entity exists when there is a contractually agreed sharing of control over an economic activity of a separate legal entity, between Jisc and third party(s). A jointly controlled entity is initially recognised at the transaction price and subsequently adjusted for the investors’ share of the profit or loss.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the assets are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

m) Pensions

The organisation participates in Universities Superannuation Scheme (USS). The scheme is 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 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 organisation 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 organisation therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme.

If the organisation enters into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund any overall deficit, the organisation will recognise a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and therefore an expense would be recognised.

n) Contingent liabilities

In accordance with the Charities SORP (FRS102) contingent liabilities are disclosed for those grants, which do not represent liabilities, but where there is a possible obligation, which arises from past events, which will only be confirmed by one or more future events, not wholly within the trustees’ control.

o) Foreign currency

Transactions denominated in foreign currencies are translated at the rate of exchange at the date of the transaction. Foreign currency balances are re-translated at the rate of exchange prevailing at the balance sheet date. Any gain or loss arising is charged to the SoFA.

The majority of foreign currency income transactions have a corresponding cost of sales transaction in the same currency, where a surplus is generated this is used to settle ad-hoc purchases in currency throughout the year.

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p) Debtors

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

q) Cash and cash equivalents

Cash at bank and cash 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.

r) Creditors and provisions

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

s) Financial instruments

Jisc only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their amortised cost. All financial assets and financial liabilities are carried at amortised cost.

t) Taxation

Jisc is a registered charity and is entitled to certain exemptions from corporation tax on profits from investments and any trading activities carried on in furtherance of the charity’s primary objectives. The subsidiary companies make qualifying donations of all taxable profits to Jisc.

The Group is able to reclaim a proportion of its input VAT incurred using the partial exemption method.

3. Critical accounting judgements and estimation uncertainty

(i) Multi-employer defined benefit pension scheme

FRS 102 makes the distinction between a Group plan and a multi-employer scheme. A Group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as USS. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense in profit or loss in accordance with section 28 of FRS 102. The trustees are satisfied that USS meets the definition of a multi-employer scheme but no contractual contributions are recognised in the financial year, as there is no deficit recovery plan in place at the date of approving the financial statements (note 30).

(ii) Timing of grant revenue recognition

Revenue from restricted grants (note 4) can vary in its terms and conditions, specified years to which it relates and cash payment profile. Judgement about the most appropriate financial year in which to recognise revenue can be required together with the amount of revenue to be recognised in that year, with reference to the specifications of a grant letter.

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b) Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(i) Useful economic life of tangible and intangible assets

The annual depreciation charge for tangible and intangible assets (notes 15 and 14 respectively) is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See notes 14 and 15 for the carrying amount of the intangible and fixed assets respectively, and note 2k for the useful economic lives for each class of assets.

(ii) Impairment of debtors

The company makes an estimate of the recoverable value of trade, intercompany and other debtors (note 17). When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

(iii) Multi-employer defined benefit pension scheme

The scheme actuary reviews the funding of the USS every year and undertakes a formal actuarial valuation every three years (note 30).

(iv) Impairment of fixed asset investments

In assessing whether the carrying value of fixed asset investments has suffered a permanent impairment, the company considers a number of indicators which include the comparing the market value of the underlying net assets to the cost of the investment, the trading history of the entity and the forecast cash flows of that entity.

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4. Donations and grants

During the year to 31 July 2024 £71,670k (2023: £73,579k) of funding was received from the United Kingdom funding bodies for higher and further education.

2024 2024 2023
Unrestricted Restricted Unrestricted Restricted Total TotalUnrestricted Restricted Unrestricted Restricted Total
Funding body: £’000 £’000 £’000 £’000 £’000 £’000
Office for Students 10,200 10,200
5,000		 15,200 15,200
10,200		 6,503 16,703 6,503 16,703
Research England 20,380 20,380
7,242		 27,622 27,622
15,520		 11,832 27,352 11,832 27,352
DfE - England 15,021 15,021
-		 15,021 15,021
15,021		 - 15,021 - 15,021
Scottish Funding Council 8,073 50 8,123 8,123
8,073		 961 9,034
HEFCW 2,001 2,001
40		 2,041 2,041
2,001		 - 2,001
DfE Northern Ireland 1,410 858 2,268 2,268
1,410		 675 2,085
Welsh Government 1,049 1,049
250		 1,299 1,299
1,046		 250 1,296
Government grant under
Apprenticeship Training 96 96
-		 96 96
87		 - 87
Scheme
58,230 13,440 71,670 670
53,358		 20,221 73 221 73,579

5. Income

Income is classified to reflect the activities of Jisc as: charitable, trading with members and other trading activities and services. The analysis below is presented to provide additional clarity to readers.

These activities are fully costed and funded independently of one another. Funding received in relation to any charitable activity is not used to cross-subsidise or provide any undue benefit to any other activity.

Income Income from Income
from
charitable		 trading with
Jisc		 from other
trading		 2024
activities members activities Total
£’000 £’000 £’000 £’000
Connectivity - -
8,353		 7,707 16,060
Data collections and statistics 12,841 12,841
161		 204 13,206
Trust and identity - -
1,243		 11,697 12,940
Jisc membership subscription 12,871 12,871
-		 - 12,871
Cloud - -
3,078		 4,753 7,831
Libraries, learning resources and - -
3,302		 963 4,265
research
Advertising income - -
837		 1,877 2,714
Data analytics - -
1,734		 658 2,392
Cyber - -
1,994		 320 2,314
Other (including rent) - -
865		 787 1,652
25,712 712
21,567		 28,966 76,245

Connectivity income comes from members and non-members taking connections in addition to those provided under their subscription and trust and identity services include verification services offered through OpenAthens and VerifID. Our cloud business resells web services through procured frameworks as well offering consultancy to members who are looking to move some of

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their activity into the cloud.

Our libraries and learning resource income represents management charges which Jisc takes on flowthrough licensing and collections purchases and Prospects.ac.uk income includes the HEDD service and the advertising through the Graduate Prospects website. Data analytics income includes the sale of HEIDI Plus, tailored data sets and online survey tools for education and research. Cyber products including penetration testing and consultancy.

Included within libraries, learning resources and research is net income of £2,838k (2023: £1,547k) from the resell of licence subscriptions through Chest and Collections. These licences are sold on an agency basis and income reported accordingly on a net basis. Gross income from licences sold on an agency basis in 2024 was £170,928k (2023: £163,116k).

Income from research organisations is classified under income from other trading activities, in prior years it was classified as income from other charitable activities. The 2023 note has not been restated, however would result in a reclassification of £808k. This excludes Subscription income which is all classified as income from charitable activities.

Income Income
from
charitable		 Income from
trading with		 from other
trading		 2023
activities Jisc members activities Total
£’000 £’000 £’000 £’000
Connectivity - -
7,246		 8,865 16,111
Jisc membership subscription 12,947 12,947
-		 - 12,947
Trust and identity 308 1,694 9,999 12,001
Data collections and statistics 10,238 - - 10,238
Cloud 103 103
1,947		 3,151 5,201
Libraries, learning resources and 14 14
2,253		 613 2,880
research
Advertising income - -
605		 2,015 2,620
Data analytics 28 28
1,881		 841 2,750
Cyber 39 39
1,890		 324 2,253
Other (including rent) 316 316
942		 1,220 2,478
23,993 23,993
18,458		 27,028 69,479

The Group is domiciled in the UK.

Income for the year to 31 July 2024 from external customers that are non-UK based was £8,988k (2023: £7,055k) with the remainder generated in the UK.

Of the above, £75,819k was unrestricted (2023: £69,187k) and £426k restricted (2023: £292k).

6. Investment income

All of the Group’s investment income of £743k (2023: £717k) arises from money held in interest bearing deposit accounts and distributions from investments.

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7. Expenditure

Expenditure
Charitable
activity		 from trading
with Jisc		 Expenditure
from other		 2024
expenditure member trading Total
£’000 £’000 £’000 £’000
Data collections and statistics 12,776 - - 12,776
Libraries, learning resources and research 11,038 1,313 - 12,351
Connectivity 34,935 13,029 8,778 56,742
Trust and identity - 725 6,827 7,552
Cloud - 3,114 4,809 7,923
Cyber - 12,732 2,043 14,775
Data analytics - 3,970 1,507 5,477
Advice and guidance 5,144 3,887 - 9,031
Student experience - 7,833 - 7,833
Events 1,659 - - 1,659
Governance costs (note 8) 2,879 85 27 2,991
Support costs (note 9) (3,562) (2,057) 24 (5,595)
Other (940) 487 - (453)
63,929 45,118 24,015 133 015 133,062
Charitable
activity		 Expenditure
from trading
with Jisc		 Expenditure
from other		 Restated
2023
expenditure member trading Total
£’000 £’000 £’000 £’000
Data collections and statistics 9,740 - - 9,740
Libraries, learning resources and 8,064 1,470 - 9,534
research
Connectivity 31,175 11,627 7,833 50,635
Trust and identity - 365 3,439 3,804
Cloud - 2,071 3,198 5,269
Cyber 1,350 9,794 - 11,144 - 11,144
Data analytics 2,619 2,754 - -
5,373
Advice and guidance 9,265 288 - 9,553
Student experience 6,448 720 1,898 9,066
Events 1,367 - - 1,367
Governance costs (note 8) 2,513 87 16 16
2,616
Support costs (note 9) 26,209 (1,675) 632 25,166 632 25,166
Other 2,932 2,764 156 156
5,852
101,682 30,265 17,172 149 17,172 149,119

Of the above total, £116,076k was unrestricted expenditure (2023: £129,577k) and £16,896k was restricted expenditure (2023: £19,542k).

The comparative amounts have been restated to better reflect the spilt of costs between categories within Connectivity, Trust & Identity and Cloud services.

All expenditure includes irrecoverable VAT, where it has been incurred.

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8. Governance costs

2024 2023
£’000 £’000
External audit 180 252
Senior management salaries (note 12) 1,676 1,612
Trustee expenses (note 12) 15 5
Governance support costs 1,120 747
2,991 2,616

The costs relating to the governance function are equally apportioned between the four key charitable activities undertaken in the year.

Governance support costs include staff salary and related costs, recruitment, insurance and professional charges.

9. Support costs

Support costs
Expenditure Expenditure from Expenditure
charitable trading with Jisc from other
activities members trading 2024
£’000 £’000 £’000 £’000
Finance and procurement 2,068 - - 2,068
Group costs (27,682) (2,325) 24 (29,983)
Strategy and corporate services 11,712 253 - 11,965
Internal IT costs 10,340 15 - 10,355
(3,562) (2,057) 24 (5,595)
Expenditure Expenditure from Expenditure
charitable trading with Jisc from other
activities members trading 2023
£’000 £’000 £’000 £’000
Finance and procurement 4,336 - - 4,336
Group costs (1,490) (2,836) 632 (3,694)
Strategy and corporate services 11,993 21 - 12,014
Internal IT costs 11,370 1,140 - 12,510
26,209 (1,675) 632 25,166

Support costs of Jisc are allocated where possible directly to the charitable activity and where this direct allocation is not possible costs are allocated in line with the number of direct staff working in each charitable activity type. Wages and pension costs include a liability for paid annual leave accrued but not taken of £1,004k (2023: £1,126k).

Group costs include credit balances for irrecoverable VAT and the release of the USS pension provision on completion of the 2023 revaluation of £29,684k (2023: £1,700k). This is explained more fully in note 30.

Internal IT costs include the costs of the software development group who work on products and services for members and customers as well as the costs of maintaining Jisc’s own IT services and systems.

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10. Grants paid

Employability
and Careers		 Content and
Discovery		 Open Source
Research Project Software Software
2024 Total		 2024 Total
2023 Total
£’000 £’000 £’000 £’000 £’000
£’000
The Open University - - - - -
41
Shibboleth Consortium - - 62 62 62
62
Grant accrual release - - - - -
(160)
Other grants (< £30k) 53 22 - 75 75
50
53 22 62 137 137
(7)

In 2024 no grants were awarded to individuals (2023: £nil), all grants were to institutions. Of the total grants paid to third parties during 2024, all were unrestricted (2023: £112k) and none were restricted (2023: £41k).

11. Net expenditure / (income)

Net expenditure / (income) is stated after charging:

2024 2023
£’000 £’000
Amortisation of intangible assets 3,207 2,685
Depreciation of tangible assets 6,002 5,079
Loss on sale of tangible fixed assets 20 30
Exchange differences 185 242
Operating lease rentals: property 1,743 2,074

During the year the Group obtained the following services from the Group’s auditors and its associates:

2024 2023
£’000 £’000
Audit of all entities and consolidated financial statements
Fees payable for the audit of the annual accounts 175 252
Fees payable for other services: grant audit - 7
Total 175 259

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12. Transactions with trustees and the cost of key management personnel

Remuneration and benefits

Remuneration and benefits
Recipient 2024
£		 2023
£
Chief executive officer 245,852 235,649
Jisc chair 15,000 15,000
260,852 250,649

The remuneration of the CEO is for their role as CEO rather than as a trustee.

The level of remuneration has been approved by the Remuneration committee, and the Articles of Association of Jisc give express authority for their employment.

The charity trustees were not paid nor received any other benefits from employment with Jisc or its subsidiaries in the year (2023: £nil), neither were they paid for professional or other services supplied to the charity (2023: £nil).

Reimbursement of expenses

Expenses were paid to trustees during the year as shown below and a breakdown by expenditure type:

type:
2024 2023
£’000 £’000
Travel and subsistence 15 5

Key management personnel

The key management personnel of the Group comprise the trustees, the chief executive officer, and 9 (2023:9) members of executive leadership team (ELT). The total remuneration and employee benefits of the key management personnel of the Group were £1,676,094 (2023: £1,612,182). Remuneration and pension contributions paid to members of the ELT during the year by role performed are shown below:

performed are shown below:
Employer 2024
Remuneration Pension Total
Role £ £ £
Chief executive officer 211,536 34,316 245,852
Chief technology officer (until 31.01.2024) 224,652 - 224,652
Interim chief technology officer (from 01.02.2024) 62,250 9,027 71,277
Managing director, customer and sector enablement 166,067 26,704 192,771
Chief financial officer 163,154 26,704 189,858
Deputy chief executive and chief operating officer 141,986 39,391 181,377
Managing director, higher education and research 146,900 23,831 170,731
Managing director, further education and skills 133,150 21,600 154,750
Chief data officer 145,600 23,831 169,431
Chief of staff 126,355 20,318 146,673
1,521,650 225,721 1,747,371

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

Employer 2023
Remuneration Pension Total
Role £ £ £
Chief executive officer 195,680 39,969 235,649
Chief technology officer 199,429 21,166 220,595
Managing director, customer and sector enablement 155,618 31,465 187,083
Chief financial officer 155,618 31,465 187,083
Deputy chief executive and chief operating officer 134,248 38,072 172,320
Managing director, higher education and research 138,890 28,080 166,970
Managing director, further education and skills 125,903 25,452 151,355
Chief data officer 125,348 23,400 148,748
Chief of staff 118,438 23,941 142,379
1,349,172 263,010 1,612,182

The remuneration policy for the ELT is the same as the rest of the Jisc Group, ie subject to the same performance review cycle, ratings and approach to pay.

The annual increase in total ELT remuneration was 8% (2023: decrease 2%). In the year to 31 July 2024, the remuneration of the chief executive officer equates 4.9 times the mean gross pay of Jisc Group employees (2023: 4.6 times) due to growth in staff numbers and the consequent change to average staff pay over the year.

13. Staff and wages

Staff and wages
Group Charity
2024 2023 2024 2023
£’000 £’000 £’000 £’000
Wages and salaries 57,458 53,717 42,158 40,103
Social security costs 5,950 5,290 4,339 3,896
Other pension costs (21,537) 5,020 (23,438) 2,828
Redundancy and termination payments 102 118 102 118
41,973 64,145 23,161 46,945

In addition, temporary staff costs of £nil (2023: £397k) for the Group were incurred during the year. By activity, the average monthly number of persons employed by the Group and charity during the year is:

year is:
Group Charity
2024 2023 2024 2023
Management 50 45 45 40
Technical 1,082 971 781 698
Administrative 140 136 140 136
1,272 1,152 966 874

Staff numbers have been reported on the basis of full-time equivalent hours.

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

The number of staff and gross salary and emoluments of staff whose remuneration was over £60,000 were in the following ranges:

£60,000 were in the following ranges:
2024 Restated*
2023
£60,001 - £70,000 94 78
£70,001 - £80,000 56 39
£80,001 - £90,000 16 14
£90,001 - £100,000 12 5
£100,001 - £110,000 3 3
£110,001 - £120,000 5 3
£120,001 - £130,000 4 2
£130,001 - £140,000 1 3
£140,001 - £150,000 3 2
£150,001 - £160,000 - 3
£160,001 - £170,000 2 1
£170,001 - £180,000 - -
£180,001 - £190,000 - -
£190,001 - £200,000 - 1
£200,001 - £210,000 - 1
£210,001 - £220,000 1 -
£220,001 - £230,000 1 -
198 155

The number of staff whose remuneration was over £60,000 to whom retirement benefits are accruing under:

Restated
2024 2023
Money purchase schemes 13 6
Defined benefit schemes 178 135
191 141

Of the 178 people (2023: 135 people), 176 (2023: 133) are members of the Universities Superannuation Scheme, a hybrid defined benefit and money purchase scheme.

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

14. Intangible assets

Group Customer
contracts		 Rights to
electronic
content		 Software
licences		 Total
£000 £’000 £’000 £’000
Cost
As at 1 August 2023 6,500 13,665 10,967 31,132
Additions - - 691 691
Disposals - (10,628) (1,364) (11,992)
As at 31 July 2024 6,500 3,037 10,294 19,831
Accumulated amortisation
As at 1 August 2023 1,950 12,241 4,826 19,017
Disposals - (10,628) (1,364) (11,992)
Charge for the year 650 364 2,193 3,207
As at 31 July 2024 2,600 1,977 5,655 10,232
As at 31 July 2023 4,550 1,424 6,141 12,115
As at 31 July 2024 3,900 1,060 4,639 9,599
Assets were assessed in the year for impairment indicators and no impairment indicators have been
noted.
Charity Customer
contracts		 Rights to
electronic
content		 Software
licences		 Total
£’000 £’000 £’000 £’000
Cost
As at 1 August 2023 - 1,700 197 1,897
Additions - - 236 236
Disposals - - (80) (80)
As at 31 July 2024 - 1,700 353 2,053
Accumulated amortisation
As at 1 August 2023 - 510 154 664
Disposals - - (80) (80)
Charge for the year - 170 44 214
As at 31 July 2024 - 680 118 798
As at 31 July 2023 - 1,190 43 1,233
As at 31 July 2024 - 1,020 235 1,255

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

15. Tangible assets

Freehold Network IT Fixtures and Leasehold
Group property equipment Equipment fittings improvements Total
£’000 £’000 £’000 £’000 £’000 £’000
Cost
As at 1 August 2023 7,205 83,357 2,237 1,126 4,208 98,133
Additions - 10,406 - - 379 10,785
Disposals - (1,355) (617) (92) (933) (2,997)
As at 31 July 2024 7,205 92,408 1,620 1,034 3,654 105,921
Accumulated Depreciation
As at 1 August 2023 1,363 71,201 1,982 633 3,127 78,306
Charge for the year 376 5,102 157 91 276 6,002
Eliminated on disposal - (1,354) (617) (70) (932) (2,973)
As at 31 July 2024 1,739 74,949 1,522 654 2,471 81,335
Net book value at 31 July 2023 5,842 12,156 255 493 1,081 19,827
Net book value at 31 July 2024 5,466 17,459 98 380 1,183 24,586

Assets were assessed for impairment indicators in the year. No impairment indicators were noted.

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

Charity Freehold
property		 IT
equipment		 Cyber
equipment		 Fixtures and
fittings		 Leasehold
improvements		 Total
£’000 £’000 £’000 £’000 £’000 £’000
Cost
As at 1 August 2023 7,205 2,237 - 1,126 4,208 14,776
Additions - - 806 - 379 1,185
Disposals - (617) - (92) (933) (1,642)
As at 31 July 2024 7,205 1,620 806 1,034 3,654 14,319
Accumulated Depreciation
As at 1 August 2023 1,363 1,982 - 633 3,127 7,105
Charge for the year 377 157 146 91 276 1,047
Eliminated on disposal - (617) - (70) (932) (1,619)
As at 31 July 2024 1,740 1,522 146 654 2,471 6,533
Net book value as at 31 July 2023 5,842 255 - 493 1,081 7,671
Net book value as at 31 July 2024 5,465 98 660 380 1,183 7,786

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

16. Investments

The Group held investments at 31 July 2024 of £115,284k (2023: £72,966k) made up of investments in funds of £114,059k (2023: £71,828k), other equity investments of £1,025k (2023: £938k) and investment in affiliates of £200k (2023: £200k).

An unrealised gain of £11,636k (2023: gain of £931k) has been reported due to the change in value of investment funds held during the year. The amount disclosed as unrealised gain on investments is grossed up to account for charges.

Group Total
£’000
Investment funds
As at 1 August 2023 71,828
Additions 85,675
Disposals (54,520)
Unrealised gain on investments 11,076
Investment funds as at 31 July 2024 114,059
Other equity investments
As at 1 August 2023 938
Additions 87
Other equity investments as at 31 July 2024 1,025
Investments in affiliates
As at 1 August 2023 200
Investments in affiliates as at 31 July 2024 200
Total investments as at 31 July 2023 72,966
Total investments as at 31 July 2024 115,284
Charity Total
£’000
Investment funds
As at 1 August 2023 71,828
Additions 85,675
Disposals (54,520)
Unrealised gain/(loss) on investments 11,076
Investment funds as at 31 July 2024 114,059
Other equity investments
As at 1 August 2023 938
Additions 87
Other equity investments as at 31 July 2024 1,025
Investments in subsidiaries and affiliates
As at 1 August 2023 32,089
Dissolution of Jisc Commercial Limited (6,750)
Investments in subsidiaries and affiliates as at 31 July 2024 25,339
Total investments as at 31 July 2023 104,855
Total investments as at 31 July 2024 140,423

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

Investment Funds

As at 31 July 2024 Jisc and the Group held the following investments funds which are stated at their market value at the balance sheet date:

their market value at the balance sheet date:
Total
Fund Price5 2024
No of units £ £’000
Mercer LLC 743,844 131.060 97,488
Ruffer Global Funds 5,760,056 1.702 9,805
Savills Investment Management 5,739,140 1.179 6,766
Other equity investments
Emerge Venture Partners I LP Investment 806
Emerge Venture Partners II LP Investment 71
Edtech startups 148
Investments in affiliates by company
Unitu Limited 200
115,284
Holdings as at 31 July 2023 were as follows:
Total
Fund Price 2023
No of units £ £’000
L&G Future World Climate 70,300,128 0.748 52,549
Ruffer Global Funds 5,760,056 1.679 9,671
Savills Investment Management 5,739,140 1.249 7,166
Managed by Rathbone Investment Management Limited: Managed by Rathbone Investment Management Limited:
Government Bonds and Invested Cash 30
Equity Risk Investments 1,799
Diversified Fund Investments 613
Other equity investments
Emerge Venture Partners I LP Investment 790
Angel Investments 148
Investments in affiliates by company
Unitu Limited 200
72,966

Holdings as at 31 July 2023 were as follows:

5 Unit price rounded to 3 decimal places

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

Investment in subsidiaries and affiliates

Jisc holds investments in subsidiaries and affiliates as part of its charitable activities. Investments in subsidiaries and affiliates are accounted for at the lower of cost or underlying net realisable value.

Throughout the year, Jisc held an investment in its trading subsidiary Jisc Services Limited. In prior year, an investment was held in Jisc Commercial Limited which is now dormant.

Jisc has a 100% owned company based in Singapore called Jisc International Apac Pte. Ltd. HESA Services Limited has been dissolved in the year, while Jisc Liberate Managed Services and Higher Education Statistics Agency Limited are both dormant and in the process of being dissolved.

The registered office addresses of all the charity’s investments are:

Name Registered office address
Jisc Services Limited 4 Portwall Lane, Bristol, BS1 6NB
Jisc Commercial Limited 4 Portwall Lane, Bristol BS1 6NB
Jisc International Apac Pte. Ltd 16 Raffles Quay, Hong Leong Building,
Singapore (048581)
Higher Education Statistics Agency Limited 4 Portwall Lane, Bristol, BS1 6NB
Jisc Liberate Managed Services Limited 4 Portwall Lane, Bristol, BS1 6NB
Unitu Limited 2 Viscount House, 8 Lakeside Drive, London, NW10 7GS

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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The charity holds greater than 20% interests in the following companies:

Country of
registration		 Activity % Holding of
Issued Share
Capital or		 Turnover Expenditure
interest &
tax		 Operating
surplus /
(deficit)		 Assets Liabilities Funds
guarantees £’000 £’000 £’000 £’000 £’000 £’000
Development and
maintenance of the Janet
Jisc Services Limited England &
Wales		 Network and connected
services and provision of
digital content for the		 100% 98,185 (91,033) 7,152 54,001 43,822 10,179
education and research
sector
Jisc International Apac
Pte. Ltd		 Singapore Provides technical support
services within the Asia and
Pacific region for Jisc Group		 100% 209 (193) 16 197 (201) (4)
Unitu Limited England &
Wales		 Provides information
technology service activities		 22% 168 (332) (164) 175 (195) 20

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

17.Debtors

17.Debtors Debtors
Group Charity
Restated* Restated*
2024 2023 2024 2023
£’000 £’000 £’000 £’000
Trade debtors 7,954 8,022 1,481 1,497
Amounts owed by Group undertakings - - 257 8,242
Other taxation & social security debtor 13,229 15,445 13,229 15,445
Other debtors 194 20 177 45
Prepayments 12,563 11,995 2,738 2,207
Accrued income 2,374 1,848 1,275 248
36,314 37,330 19,157 27,684

Trade debtors are reviewed for impairment and are shown at their amortised cost. An impairment provision of £268k has been recognised in the year (2023: £64k) and has been charged to charitable activities expenditure of £17k (2023: £42k) and other trading activities of £251k (2023: £22k) in the Statement of Financial Activities. No impairment provisions are recognised against charity debtors (2023: £nil).

*The other taxation & social security debtor relates to the recovery of input VAT from previous years on costs incurred on providing the Janet network (note 31). In 2023 this debtor was shown net of £3.3m of VAT payable to HMRC, however this has been restated for clarity to show the gross amount due. See note 34 for details of the prior year published amounts.

Amounts owed by Group undertakings:

Amounts owed by Group undertakings:
Charity
2024 2023
£’000 £’000
Jisc Commercial Limited - 8,146
Jisc Services Limited 64 -
Jisc International Apac PTE. Ltd 193 96
257 8,242

18. Creditors: amounts falling due within one year

Creditors: amounts falling due within one year Creditors: amounts falling due within one year Creditors: amounts falling due within one year
Group Charity
Restated* Restated*
2024 2023 2024 2023
£’000 £’000 £’000 £’000
Trade creditors 2,864 6,430 1,352 1,214
Amounts owed to Group undertakings - - 2,675 9,522
Other taxation & social security 4,928 6,662 3,606 4995
Other creditors 1,919 2,259 989 1,221
Accruals 7,769 13,111 6,181 7,862
Deferred income (note 19) 10,394 9,710 1,461 990
Net agency creditor 29,253 24,868 - -
57,127 63,040 16,264 25,804

Other creditors no longer includes a balance owed to pension funds (2023: £1,001k).

The other taxation & social security creditor for 2023 has been restated for clarity as explained in note 17. See note 34 for details of the prior year published amounts.

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

Amounts owed to Group undertakings:

Jisc Services Limited

Charity
2024 2023
£’000 £’000
2,675 9,522

Amounts owed to Group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

19. Deferred income

Income has been deferred where services or goods issued to beneficiaries have not been or are partially provided. In addition, performance-related grants that are conditional upon the delivery of a specific level of service have been deferred where the conditions had not yet been met.

Group Charity
2024 2023 2024 2023
£’000 £’000 £’000 £’000
Deferred income brought forward 9,710 11,937 990 2,344
Released in year (9,710) (11,937) (990) (2,344)
Deferred in year 10,394 9,710 1,461 990
10,394 9,710 1,461 990

20. Provision for liabilities

Provision for liabilities
Group Charity
2024 2023 2024 2023
£’000 £’000 £’000 £’000
Pension provision (note 29) - 29,078 - 28,905
Other provisions 1,356 2,580 1,356 2,580
1,356 31,658 1,356 31,485
The above is analysed as follows:
Due within one year 1,356 3,322 1,356 3,318
Due after more than one year - 28,336 - 28,167
1,356 31,658 1,356 31,485

Pension provision

The pension provision represented the Group and charity recognising a liability in relation to its contractual obligation to contribute to covering the USS deficit in the prior year. Following the 2023 valuation, this provision is no longer required

Group Charity
2024 2023 2024 2023
£’000 £’000 £’000 £’000
Due within one year - 742 - 738
Due after more than one year - 28,336 - 28,167
- 29,078 - 28,905

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

Other provisions

Other provisions
Group Charity
2024 2023 2024 2023
£’000 £’000 £’000 £’000
Balance brought forward 1 August 2023 2,580 1,868 2,580 1,868
Net Movement (1,224) 712 (1,224) 712
Balance carried forward 31 July 2024 1,356 2,580 1,356 2,580

Provision has been made for £538k of property lease dilapidations (2023: £2,109k). During the year the provisions made for Harwell and Cheltenham properties were released when the leases were surrendered. The remainder of the provisions amount relates to other provisions.

21. Restricted income funds

Group

Restricted income funds
Group
2024 2023
£’000 £’000
Balance brought forward 1 August 2023 8,735 10,819
Net incoming/(outcoming) resources (3,120) 930
Fixed assets purchased and transferred to unrestricted funds - (5,163)
Receipt of restricted reserve from merger - 2,149
Balance to carry forward 31 July 2024 5,615 8,735
Charity
2024 Restated
2023
£’000 £’000
Balance brought forward 1 August 2023 8,735 10,819
Net outgoing resources (3,120) (4,233)
Receipt of restricted reserve from merger - 2,149
Balance to carry forward 31 July 2024 5,615 8,735

Restricted balances are held in cash. The cash is held within the subsidiary company bank accounts as during the financial year it acted as a central treasury management facility. See note 34 for details of the prior year published amounts.

22. Unrestricted income funds

Group

Designated funds Designated funds
General Grant Network Network
Data
unrestricted funded and cyber and cyber
modernisation		 Restructure
Total Total
fund		 assets reserve reserve
reserve		 reserve
£’000 £’000
£’000		 £’000 £’000 £’000
£’000		 £’000
Balance b/fwd 1 August 2023 103,607 103,607
86,848		 16,187 - -
-		 572
Net incoming resources 30,215 30,215 - - -
-		 -
Transferred from unrestricted - (43,800) - 36,400 400
7,400		 -
Balance c/fwd 31 July 2024 133,822 73,263 16,187 36,400 400
7,400		 572

The designated fund labelled “grant funded assets” reflects the net book value of assets purchased using grants.

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

72

Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

The restructuring fund is designated for future restructuring expenditure across the Group.

During the financial year the Board agreed to the creation of designated reserves for the following future activities of the group, network and cyber protection and data collection and publication modernisation.

Charity

Charity
Designated funds
Restated*
General Grant Network Data
Restated* Restated*
unrestricted		 funded and cyber modernisation Restructure
Total Total
fund		 assets reserve reserve reserve
£’000 £’000 £’000 £’000 £’000 £’000
Balance b/fwd 1 August 2023 114,355 106,200 7,583 - - 572
Net incoming resources 23,123 23,123 - - - -
Gift of reserve from 4,472 4,472 - - - -
Jisc Commercial Ltd
Gift aid payment from 6,859 6,859 - - - -
Jisc Services Ltd
Transfer from unrestricted - (43,800) - 36,400 7,400
Balance c/fwd 31 July 2024 148,809 96,854 7,583 36,400 7,400 572

*The total and general unrestricted opening balances for the charity have been restated to reflect reclassification of balances from restricted funds as of 1 August 22 and 1 August 2023. See note 34 for details of the prior year published amounts.

23. Analysis of net assets between funds

Group Unrestricted
Funds		 Restricted
Funds		 Total
2024		 Restated*
Unrestricted
Funds		 Restricted
Funds		 Restricted
Funds
Restated*
Total
2023
£’000 £’000 £’000 £’000 £’000 £’000
Fixed assets 149,469 - 149,469 104,908 - 104,908 - 104,908
Current assets 42,836 5,615 48,451 93,397 8,735 102,132 8,735 102,132
Current liabilities (58,483) - (58,483) (66,362) - (66,362) - (66,362)
Non-current liabilities - - - (28,336) - (28,336)
Total 133,822 5,615 139,437 103,607 8,735 112 735 112,342
Charity Unrestricted
Funds		 Restricted
Funds		 Total
2024		 Restated*
Unrestricted
Funds		 Restricted
Funds		 Restricted
Funds
Restated*
Total
2023
£’000 £’000 £’000 £’000 £’000 £’000
£’000
Fixed assets 149,464 - 149,464 113,759 - 113,759 - 113,759
Current assets 16,965 5,615 22,580 57,885 8,735 8,735
66,620
Current liabilities (17,620) - (17,620) (29,122) - (29,122) - (29,122)
Non-current liabilities - - - (28,167) - -(28,167)
Total 148,809 5,615 154,424 114,355 8,735 123 735 123,090

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

73

Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

24. Operating lease commitments

The Group had the following future minimum lease payments under non-cancellable operating leases for each of the following periods:

leases for each of the following periods:
Group Charity
2024 2023 2024 2023
£’000 £’000 £’000 £’000
Land and buildings
Not later than one year 1,044 1,039 1,044 1,039
Later than one year and not later than five years 3,118 5,346 3,118 5,346
Later than five years 121 747 121 747
4,283 7,132 4,283 7,132

25. Reconciliation of net expenditure to net cash inflow from operating activities

2024 2023
£’000 £’000
Net income / (expenditure) for the reporting period
(as per Statement of Financial Activities)		 15,459 (2,431)
Adjustments for:
Interest (743) (717)
Pension deficit contributions paid (880) (2,170)
Loss on disposal of fixed assets 20 (7)
Write off of investments - 58
Depreciation on tangible fixed assets 6,002 5,079
Amortisation of intangible assets 3,207 2,685
Decrease in debtors 1,016 1,977
Decrease / increase in creditors and provisions (35,938) 13,157
Unwinding of discount on pension provision 606 1,016
Other including unrealised gains 561 310
Net cash (used) / provided by operating activities (10,690) 18,957

Analysis of net funds

Analysis of net funds
Group Charity
2024 2023 2024 2023
£’000 £’000 £’000 £’000
Cash at bank and in hand 12,137 33,765 3,423 7,899
Cash equivalents - 31,037 - 31,037
Total cash and cash equivalents 12,137 64,802 3,423 38,936

The amounts held previously as cash equivalents are held in a different financial instrument at 31 July 2024 and are now classified as investments.

26. Members liability

Jisc is a charitable company limited by guarantee (CLG). The constitution allows for two classes of membership. One class comprises representative members, which includes the original members and guarantors - the Association of Colleges, Guild HE and Universities UK. Each of these representative members holds 30% of the voting rights. The other class of membership, in place from 1 August 2014, comprises institutional members, who together hold 10% of the voting rights. The liability of each member (both institutional and representative) is limited to a maximum of £1. This liability will apply for the duration of membership of the charitable company and for one year beyond the end of membership.

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

74

Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

27. Results of the charity

Results of the charity
Unrestricted Restricted Total Total
fund fund 2024 2023
£’000 £’000 £’000 £’000
Total incoming resources 106,460 13,781 120,241 102,602
Net surplus/(deficit) 23,123 (3,120) 20,003 (6,202)

28. Related parties

The institutions, suppliers and customers shown within the note have been declared as interests by the trustees of Jisc, members of executive leadership team and the board of directors of its subsidiaries.

subsidiaries.
Year ended 31 July 2024 I&E Balance sheet
Income Income
Expenditure		 Debtors Creditors
£’000 £’000
£’000		 £’000 £’000
Association for LearningTechnology 3 13 - 1
HartpuryUniversityand HartpuryCollege 57 - 1 -
Hull College 57 - - -
Kingston University 1,510 - 188 -
Office for National Statistics (ONS) 6 - 5 -
Office for National Statistics (ONS)
SHU Education services Limited		 1,776 27 88 9
Staffordshire University 590 28 4 -
Swansea University 1,964 5 122 -
Universities UK 9 26 2 12
UniversityCollege of Estate Management 35 - - -
Universityof Chester 818 10 124 -
University of Derby 788 - 252 -
University of Exeter 2,679 16 123 -
West London College 56 - 9 -
10,348 125 918 22
Year ended 31 July 2023 I&E I&E Balance sheet Balance sheet
Income Income
Expenditure		 Debtors Creditors
£’000 £’000
£’000		 £’000 £’000
Association of Colleges 1 - 7 -
Birkbeck College 359 221 77 -
CoventryUniversityManagement Services 1,198 690 510 -
Dumfries & GallowayCollege 19 14 31 -
GEANT Vereniging 47 104 562 -
Higher Education Funding Council for Wales
(HEFCW)		 2,023 - - 15
(HEFCW)
Hull College		 25 1 23 -
IDP Connect 23 - - -
NARIC/ENIC 1 - - -

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Year ended 31 July 2023 I&E I&E Balance sheet Balance sheet
Income Income
Expenditure		 Debtors Creditors
£’000 £’000
£’000		 £’000 £’000
National Centre for Universities and
Business(NCUB)Taskforce		 - 6 - -
Office for National Statistics(ONS) 52 - 37 -
Royal Holloway, Universityof London 854 6 196 -
Russell Groupof Universities 7 - - -
St Antony's College,Universityof Oxford 4,528 1,186 103 -
Swansea University 1,808 661 202 -
The Tech Partnership 49 - 1 -
Universities UK - - 5 -
Universities Wales 10 13 2 -
UniversityCollege London 6,753 2,037 277 3
Universityof Derby 546 4 247 -
Universityof Essex 2,084 688 365 4
Universityof Exeter 2,269 682 473 -
Universityof Southampton 2,806 14 590 -
Universityof West London 394 173 24 -
University Recruitment & Global Partnerships
at Leeds Beckett University		 University Recruitment & Global Partnerships
935		 486 - 8
West London College 54 20 18 -
York College 64 25 36 -
Yorkshire Universities 2 - - -
26,911 7,031 3,786 30

Footnotes:

HEFCW was listed as a Related party in FY2023. It provides grant funding as it is a Jisc funding body.

29. Pension

Universities Superannuation Scheme

The company participates in the Universities Superannuation Scheme (the scheme). The assets of the scheme are held in a separate trustee-administered fund. The company is required to contribute a specified percentage of payroll costs to the pension scheme to fund the benefits payable to the company’s employees. The company 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 FRS 102, accounts for the scheme as if it were a defined contribution scheme.

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

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

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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surplus on a technical provisions basis. Jisc was no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision of £29,078k to the income and expenditure account.

Contributions for the year were £5,946k (2023: £7,311k). The reduction is due to the employer contribution rate falling to 14.5% from 1 January 2024.

The following table shows the movement in the USS pension provision:

Group Charity Charity
2024 2023 2024 2023
£’000 £’000 £’000 £’000
Brought forward 29,078 30,778 28,905 30,514
Deficit contribution paid (880) (2,170) (875) (2,067)
Unwinding of discount 606 1,016 602 1,011
Change in expected contributions (28,804) (546) (28,632) (553)
Balance carried forward - 29,078 - 28,905

The key financial assumptions used in the 2023 valuation are described below. More detail is set out in the Statement of Funding Principles .

CPI assumption

Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves less:

1.0% p.a. to 2030, reducing to 0.1% p.a. from 2030 Benefits with no cap:

CPI assumption plus 3bps

Pension increases Benefits subject to a “soft cap” of 5% (providing inflationary (subject to a floor of 0%) increases up to 5%, and half of any excess inflation over 5% up to a maximum of 10%): CPI assumption minus 3bps Fixed interest gilt yield curve plus Discount rate (forward rates) Pre-retirement: 2.5% p.a. Post-retirement:0.9% p.a.

The main demographic assumption used relates to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2023 actuarial valuation. The mortality assumptions used in these figures are as follows:

2023 valuation

101% of S2PMA "light" for males and 95% of S£PFA for Mortality base table females.

CMI_2021 with a smoothing parameter of 7.5, an initial Future improvements to mortality addition of 0.4% pa and a long term improvement rate of 1.8% pa for males and 1.6% pa for females.

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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The current life expectancies on retirement at age 65 are:

The current life expectancies on retirement at age 65 are: 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

The employers’ contribution rates are as follows:

Effective date Rate
1 April 2022 to 31 December 2023 21.60%
1 January 2024 to 30 April 2028 14.50%

Civil Service pensions

Pension benefits, for three (2023: three) employees who transferred from HEFCE, are provided through the Civil Service pension arrangements. The statutory arrangements are unfunded with the cost of benefits met by monies voted by parliaments each year. Employee contributions are salaryrelated and range between 4.6% and 7.35% of pensionable earnings. The rate for employers’ contributions is 28.97% and is charged directly to the SoFA.

Group and company contributions to this scheme in 2024 totalled £76k (2023: £76k).

Defined contribution

There is a defined contribution scheme operating within the Group for a small number of employees who transferred from Janet. At the balance sheet date there were two active members. Group contributions were £18k in the year (2023: £17k).

From 1 May 2021 a new additional defined contribution scheme was introduced for new employees and existing employees wishing to transfer. At the balance sheet date there were 609 active members and contributions within the Group were £2,215k (2023: £1,486k).

Contributions on these schemes are charged to the SoFA as incurred. This includes an amount of £296k (2023: £217k), outstanding at the balance sheet date. £nil (2023: £nil) of the contributions for these defined contribution plans were funded through restricted funds.

30. Taxation

As a registered charity, Jisc is entitled to certain tax exemptions on income and profits from investments and surpluses on any trading activities carried out in the furtherance of its primary objectives.

Neither the Group nor charitable company had any deferred tax assets or liabilities (2023: £nil).

31. Contingent assets and liabilities

As Jisc makes both taxable and exempt supplies with respect to VAT, it applies a partial exemption special method to determine the amount of VAT which can be recovered on its inputs. During 202021, Jisc agreed a claim totalling £20,979k, net of professional charges, with HMRC for the recovery of historic input VAT from previous years for costs incurred on providing the Janet network. Based on the advice of their professional advisors, the directors consider that it is not probable that any further contingent asset or liability to VAT will arise.

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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32. Financial commitments

At 31 July, the Group had the following capital commitments:

Financial commitments
At 31 July, the Group had the following capital commitments:
2024 2023
£’000 £’000
Contracts for future capital expenditure not provided in the financial
statements – equipment		 - 2,928

33. Transfer of activities between Jisc group

During the year, a Business Transfer Agreement with an effective date of 1 August 2023 was signed between Jisc Services Limited and Jisc Commercial Limited to transfer the trade and assets of Jisc Commercial Limited to Jisc Services Limited as a going concern. This was undertaken as part of the rationalisation of the Jisc group structure. The assets and liabilities were transferred into Jisc Services Limited at net book value.

The Jisc Commercial Limited board passed a resolution to distribute the entirety of its retained earnings to Jisc as sole shareholder (in accordance with article 93) which totalled £4,472k. Subsequent to this, Jisc Commercial Limited had no assets or liabilities and will be dissolved in due course.

The net asset values transferred from Jisc Commercial Limited to Jisc Services Limited are summarised as follows:

summarised as follows:
Book value
01/08/2023
£’000
Intangible assets 4,550
Cash 1,743
Debtors 21
Creditors (2,480)
Intercompany creditors with group companies (3,834)
-

34. Restated amounts in respect of 2023

Income and expenditure associated with charitable activities, trading with members and other trading income

Income within the groupings of charitable activities, trading with members and other trading has been recategorised in the year to more accurately reflect the split of the Group’s income within connectivity, trust & identity and cloud services. The comparative amounts in the financial statements have been restated to maintain comparability between financial years.

Expenditure in the same groupings has been recategorised to reflect the costs associated with these activities. The comparative amounts in the financial statements have been restated to maintain comparability between financial years.

The final results of the Group and the charity are unchanged as a result of the recategorisations in the prior year.

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Debtors and creditors

The other taxation & social security debtor relates to the recovery of input VAT from previous years on costs incurred on providing the Janet network (note 31). In 2023 this debtor was shown net of £3.3m of VAT payable to HMRC, however this has been restated for clarity to show the gross amount due impacting both debtor and creditor balances.

Debtors

Debtors
Group
As reported Adjustment Restated
2023 2023 2023
£’000 £’000 £’000
Trade debtors 8,022 - 8,022
Amounts owed by Group undertakings - - -
Other taxation & social security debtor 12,145 3,300 15,445
Other debtors 20 - 20
Prepayments 11,995 - 11,995
Accrued income 1,848 - 1,848
34,030 3,300 37,330
Charity
As reported Adjustment Restated
2023 2023 2023
£’000 £’000 £’000
Trade debtors 1,497 - 1,497
Amounts owed by Group undertakings 8,242 - 8,242
Other taxation & social security debtor 12,145 3,300 15,445
Other debtors 45 - 45
Prepayments 2,207 - 2,207
Accrued income 248 - 248
24,384 3,300 27,684

Creditors: amounts falling due within one year

Group
As reported Adjustment Restated
2023 2023 2023
£’000 £’000 £’000
Trade creditors 6,430 - 6,430
Amounts owed to Group undertakings - - -
Other taxation & social security 3,362 3,300 6,662
Other creditors 2,259 - 2,259
Accruals 13,111 - 13,111
Deferred income 9,710 - 9,710
Net agency creditor 24,868 - 24,868
59,740 3,300 63,040

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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Docusign Envelope ID: 9579BFBF-7839-4110-9A80-E0887FF60A85

Charity
As reported Adjustment Restated
2023 2023 2023
£’000 £’000 £’000
Trade creditors 1,214 1,214
Amounts owed to Group undertakings 9,522 9,522
Other taxation & social security 1,695 3,300 4995
Other creditors 1,221 1,221
Accruals 7,862 7,862
Deferred income 990 990
22,504 3,300 25,804

Charity reserves

A review of the Charity reserves identified a historic misclassification between restricted and unrestricted reserves. This has been corrected and the balances restated to reflect the underlying nature of the funds, aligning with those of the Group.

Restricted reserves

Restricted reserves
As reported Adjustment Restated
Charity 2023 2023 2023
£’000 £’000 £’000
Balance brought forward 1 August 2022 64,452 (53,633) 10,819
Net incoming/(outgoing resources) 11,523 (15,756) (4,233)
Receipt of restricted reserve from merger 2,149 - 2,149
Balance to carry forward 31 July 2023 78,124 (69,389) 8,735

Unrestricted reserves

Unrestricted reserves
As reported Adjustment Restated
Charity 2023 2023 2023
£’000 £’000 £’000
Balance brought forward 1 August 2022 61,540 53,633 115,173
Net incoming/(outgoing resources) (19,874) 15,756 (4,118)
Gift aid payment from Jisc Services Ltd 3,300 - 3,300
Balance carried forward 31 July 2023 44,966 69,389 114,355

Net Assets

Net Assets
As reported Restated As reported Restated
Charity Unrestricted
Funds		 Adjustment
2023		 Adjustment
2023
Unrestricted
Funds		 Restricted
Funds		 Adjustment
2023		 Restricted
Funds
2023 2023 2023 2023
£’000 £’000 £’000
£’000		 £’000 £’000 £’000
Fixed assets 113,759 - -
113,759		 - -
Current assets (14,804) 72,689 72,689
57,885		 78,124 (69,389) 8,735
Current liabilities (25,822) (3,300) (3,300)
(29,122)		 - -
Non-current liabilities (28,167) - -
(28,167)		 - -
Total 44,966 69,389 389
114,355		 78,124 (69,389) 8,735

Jisc Trustees’ Report and Financial Statements Year Ended 31 July 2024

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