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← Glasgow School Of Art

2025-07-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2025 SC002271

INTRODUCTION

INTRODUCTION
Office bearers 2
Advisors 2
STRATEGIC REPORT
Background 4
Overview of 2024/25 5
Our Plan for Our Future: Strategic Plan 2022-2027 8
Transform our distinct models of creative education 9
Impact through creative research, innovation and partnership 11
A sustainable, independent art school 13
Principal Risks and Uncertainties 19
Duty to promote the success of the Company 20
Financial Review 23
DIRECTORS' REPORT
Board Membership 29
Environmental Sustainability 30
Equality and Diversity 32
Employment of Disabled Persons 33
Responsibilities of the Board of Governors for accounting and the financial statements 33
Auditor 34
Post-balance sheet events 34

CORPORATE GOVERNANCE REPORT

CORPORATE GOVERNANCE REPORT
Introduction 36
Governing Body 36
Corporate Strategy 43
Risk Management 43
Internal Control 43
The Scottish Code of Good Higher Education Governance 44
Going Concern 44
Conclusion 44

AUDIT REPORT

Independent Auditor’s report to the Board of Governors of The Glasgow School of Art 46
FINANCIAL STATEMENTS
Group and School Statement of Comprehensive Income and Expenditure 50
Group and School Statement of Changes in Reserves 51
Group and School Balance Sheet 52
Group Statement of Cash Flows 53
Statement of principal accounting policies and estimation techniques 54
Notes to the financial statements 59

INTRODUCTION

The Directors present their Annual Report and the audited Financial Statements for the Year ended 31 July 2025. The financial statements consolidate the results of the Group, comprising The Glasgow School of Art, The Glasgow School of Art Development Trust, and GS of A Singapore Pte Ltd.

The Glasgow School of Art is a Company Limited by Guarantee (Company registration number SC002271) and is a registered charity in Scotland (Registered number SCO12490), having its registered office at 167 Renfrew Street, Glasgow G3 6RQ

Copies of these financial statements can be obtained by contacting the registered office.

Office bearers

Patron HRH King Charles III Hon. President Mr Stewart Grimshaw Hon. Vice President Professor Anthony Jones CBE Chair Ms Ann Priest MBA, FRSA, CText FTI Vice Chair Ms Kristen Bennie BA Vice Chair Professor Anne Trefethen FREng (from 29/05/2025) Director and Principal Professor Penny Macbeth BA (Hons), MA FHEA Company Secretary Ms Emma Williams BA (Hons), MBA

Advisors

Solicitors Thorntons Law LLP Whitehall House, 33 Yeaman Shore, Dundee DD1 4BJ External Auditor AAB Audit & Accountancy Limited 81 George St, Edinburgh, EH2 3ES Internal Auditor BDO 2 Atlantic Square, 31 York Street, Glasgow, G2 8NJ Bankers Bank of Scotland plc 54-62 Sauchiehall Street, Glasgow, G2 3AH

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STRATEGIC REPORT

STRATEGIC REPORT

STRATEGIC REPORT

STRATEGIC REPORT

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STRATEGIC REPORT

Strategic report

Strategic report

Background

Past, present and future

The Glasgow School of Art (GSA) was founded in 1845 as one of the first Government Schools of Design and a centre of creativity dedicated to promoting good design for the manufacturing industries, becoming The Glasgow School of Art in 1853. The GSA’s role has continually evolved to reflect the needs of the communities we serve.

Today, the GSA is internationally recognised as one of the leading independent university-level institutions for the visual creative disciplines and is consistently ranked as one of the top art and design institutions in the world. Our international standing is rooted in the quality of our education and research, and underlined by our international partnerships with the world’s leading art and design institutions, alongside academic partners in science, engineering, technology, industry, and the third sector. With a campus in Glasgow, and a pioneering research centre at our Highland and Islands campus in Forres, our ability to work across rural and urban spaces offers considerable opportunities for education and research, and helps to define our contribution and impact.

As a small specialist institution, the GSA is a vibrant international community of over 3,500 students and staff, studying and working across our academic schools of Architecture, Design, Fine Art, and Innovation and Technology, and further supported by our interdisciplinary research centre, Rural Lab. In addition, our thriving Open Studio programme delivers a range of non-degree provision to over 1,500 students annually, working with partners across education and the wider community.

Our students and staff form a vital part of Glasgow’s cultural and creative ecosystem. Each year, more than 60% of GSA graduates choose to remain in Glasgow after completing their studies, sustaining and growing one of the UK’s largest concentrations of creative and cultural professionals.

Glasgow is also home to some of Scotland’s most important cultural and creative organisations. As the largest economy in Scotland, Glasgow's creative industries make a significant contribution to the city’s economic growth and employment. With recognised strengths across digital media, design, the visual arts, curation and innovation, the creative sector makes a significant contribution, both to the economic growth of Glasgow and to the wider region.

Over 38% of GSA students are from outside the United Kingdom, adding unique global perspectives and enriching the studio and learning environment. We understand the value and importance to our Scottish and RUK students of studying within an international creative community and the long-term opportunities this provides them of becoming part of a global creative network of more than 22,000 alumni working, practicing and making in the cultural and creative sectors and across the broader economy.

Our international reputation was further affirmed by our position in the QS World University Rankings 2025, where the GSA was ranked 12th globally for Art & Design education and research, demonstrating our continued leadership in creative education worldwide.

Institutional structure and portfolio

During 2024/25, The Glasgow School of Art’s teaching and research was structured around four academic schools:

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Overview of 2024/25

Over the past year we have seen sustained financial pressures across higher education, resulting from an increasingly competitive international student recruitment market, increased operating costs, declining levels of funding for Scottish and Rest of UK (RUK) undergraduate students, and regulatory and political change. As a small specialist institution, these external pressures present both a risk and an opportunity, requiring us to be adaptive and responsive to change, and to capitalise on our strengths of deep specialism and research excellence alongside interdisciplinary practice, making, collaboration and partnership.

Against this complex and challenging operating environment for higher education, both globally and domestically, The Glasgow School of Art continues to create impact and actively demonstrate the importance of creative education and research, creative people, and creative and cultural institutions.

Planned growth in our student population for 2024/25 fell marginally short of our target by 4%, primarily due to new undergraduate international enrolments, which was partly addressed by a significant 38% year-on-year increase in undergraduate enrolments from the rest of the UK. International postgraduate enrolments increased by 38%, reflecting the GSA’s ranking as one of the world’s leading art and design institutions, and reinforcing our position as one of the UK’s largest postgraduate art and design communities.

Growth in new student enrolment was achieved against a highly competitive and dynamic student recruitment environment. Although tracking slightly below our ambitious growth targets, as set out in our Strategic Plan 2022-2027, we have continued to achieve year-on-year growth, and, through mitigation, achieved a financial surplus. Growth is being achieved because The Glasgow School of Art continues to be an institution of choice for students at both undergraduate and postgraduate level, evidenced in the consistently high levels of applications.

Applications for entry in 2024/25 tracked ahead of the general trend across the UK higher education sector, which saw a decline in international applications and enrolments. The GSA’s application levels were maintained, and, while enrolments increased, they did not meet our planned growth targets. China, where the GSA has traditionally attracted a significant number of highly qualified applicants based on our global reputation and extensive presence in the region, is a competitive and challenging market. The GSA is working to strategically manage high application levels and therefore small declines in application numbers from this market are anticipated. Looking forward, China will continue to be an important market for the GSA, however we will also direct our resources and focus on other markets where growth potential exists, and where the GSA has been active over a number of years, thereby providing us with a more balanced and resilient recruitment profile.

The GSA achieves sector-leading demand from Scottish-domiciled applicants at undergraduate level. However, with only 11% of Scottish applicants securing a place to study at the GSA due to the limited number of funded places available, we continue to engage with the Scottish Funding Council regarding the potential for additional funded places in order to meet that high demand, and enable us to develop new undergraduate programmes (with sufficient numbers of Scottish students) which are aligned to the key economic priorities and skills for Scotland.

Our commitment to meeting the Scottish Government’s ambitions for access and articulation remains a key priority. That commitment has led us to consistently meet the 2030 target, set by the Commission for Widening Access, with 20% of new GSA students coming from the 20% most deprived areas of Scotland. Over the past 10 years, we have consistently drawn between 9% and 14% of our home students from SIMD10 (The Scottish Index of Multiple Deprivation, level 10), the most disadvantaged section of the Scottish population. Equally important is that retention rates for our widening participation and articulation students have consistently mirrored those of other student cohorts.

This year also saw the launch of the GSA Rural Lab, marking a significant new chapter in our longstanding commitment to sustainable futures and the rural economy. A key ambition within our Strategic Plan, Rural Lab builds on our pioneering presence in the Highlands and Islands, and positions the GSA as a global leader in research, education, innovation and enterprise in rural contexts. Rural Lab exemplifies a unique strength of the GSA, namely our capacity to lead major research and innovation programmes on a global scale, while forging impactful partnerships across business and academia.

In 2025, the Rural Lab secured major funding through an AHRC Doctoral Focal Award. A Golden Thread: Crafting the Creative Economy from Scotland’s Highlands, Lowlands & Islands aims to strengthen Scotland’s craft sector and generate wider economic and social impacts through supporting interdisciplinary study at the intersection of craft and future-focused industries, such as space, biomaterials and regenerative design. This funding will enable the GSA, in collaboration with the Open University and Scotland’s Rural College (SRUC), to create a distributed training college of twenty doctoral researchers recruited from across Scotland’s rural and island communities.

The Glasgow School of Art’s Creative Network - a global community of over 22,000 graduates spread across 95 countries - contributes to the life of the GSA through teaching, advice, opportunities and partnerships. It also connects the GSA’s ever-growing creative community, both locally and globally, as well as our graduates, who can be found working in all areas of the creative industries and wider economy. We are always delighted to celebrate the success of our students, graduates, and staff, including:

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Mackintosh School of Architecture:

School of Innovation and Technology:

School of Design:

School of Fine Art:

The 2024 Turner Prize was awarded to GSA Silversmithing and Jewellery graduate, Jasleen Kaur. Jasleen joined a long list of GSA alumni who have featured in the Turner Prize over the past 40 years, including six previous winners and a further twelve nominees. Nominated for her solo exhibition, Alter Altar , at the Tramway in Glasgow, the award reinforced the importance of Glasgow as a centre for contemporary art practice and curation, and the GSA’s role both as an educator and as a vital part of the city’s creative ecosystem, which it continues to enhance through its cultural engagement and exhibitions programme.

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In addition to our annual degree shows, the GSA exhibitions programme 2024/25 included:

A rich partnership approach to education, research and innovation is a core value of the GSA. Over the past year, we have developed partnerships with:

We aim to empower change and create impact in all that we do. We were honoured that our collective contribution and significant influence on world art and design was recognised by the Ladislav Sutnar Faculty of Design and Art of the University of West Bohemia in Pilsen, who awarded the School the Ladislav Sutnar Prize 2024. On receiving this award, the GSA joined a distinguished list of former recipients, including The University of Applied Arts Vienna and The Swedish National Centre for Architecture and Design.

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Our Plan for Our Future: Strategic Plan 2022-2027

Our Plan for Our Future: Strategic Plan 2022-2027 articulates the collective ambition for the future direction of The Glasgow School of Art, alongside a set of Lead Indicators which track our progress and performance. Our Strategic Plan was developed, and is being delivered, collaboratively, through core strategies of Education and Research, and a number of enabling strategies which encompass People, Estates, Digital, Development, Recruitment and International, as we work to achieve our ambitions for The Glasgow School of Art and our Strategic Focus to 2027.

Our ambition

Through our people, education and research, we empower change and create impact that is both transformative and collaborative.

Our values

Our strategic focus to 2027

Each one of these has clearly articulated aims, core and enabling strategies, and a number of lead indicators, which are set out on the following pages.

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Transform our distinct models of creative education

Valuing our disciplinary strengths and traditions, we will deliver new inclusive ways of learning and teaching that provide greater opportunities for collaboration and flexibility, giving students more agency over how they learn and ways to make a positive impact through their practice.

In Academic Year 2024/25 we implemented Year 2 of our Education Strategy, a core strategy within the GSA Strategic Plan 20222027. Our strategic objectives - to deliver an extraordinary student experience, transform our models of creative education, support our students to achieve their potential and make positive contributions, work in partnership with our students, and strengthen and enhance practice - have been progressed through a series of projects and workstreams which were developed, implemented and monitored by our Educational Enhancement Planning Group.

Over the past year we have:

Year 3 of our Education Strategy will be implemented in 2025/26, and will focus on a number of key projects and workstreams, including:

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The implementation of the transformation of our distinct models of creative education is monitored through a series of Lead Indicators:

l NSS - Overall Satisfaction

The percentage of students who agree with the question in the National Student Survey of final year undergraduate: “Overall I am satisfied with the quality of my course”.

Our ambition is to grow NSS overall satisfaction to 80% by 2027. We have recovered some lost ground compared to our result in 2023/24 (58%) by achieving 67% in 2024/25, but remain slightly behind the target trajectory of achieving 80% by the end of the plan period.

l Postgraduate Taught - Overall Satisfaction

The percentage of students who agree with the question in GSA’s Internal Postgraduate Student Experience Survey: “Overall I am satisfied with the quality of my course”.

Our ambition is to grow overall PGT satisfaction to 85%. 2025 saw us recover to 2023 levels following a slight reduction in 2024, and we remain above our target for the year and only 1% short of the Strategic Plan target.

l Continuation Rate

The percentage of students continuing following the year of entry.

Our target is for very modest growth of our very high baseline continuation rate from 96.8% to 98%. 2022/23 entrants continuing into 2023/24 improved marginally year-on-year to 96.2%, less than 1% short of the target expected for this year.

l Graduate Outcomes

The percentage of students who enter graduate-level occupations or go on to further study at a professional, HE level.

Our target is to reach 75%. Following two fairly stable years, we saw a decline in this metric in 2024 to just under 66%. This is almost 8% short of the target for the year. Although there was a disappointing decline in % positive destinations for 2022/23 graduates, the GSA demonstrated a strong performance relative to comparator specialist art and design institutions against which we benchmark ourselves. A short-life working group was convened to improve Graduate Outcomes (GO) survey completion rates, and plans will be implemented in 2025/26.

l Total Student Population

Full-Time Equivalent students (FTE).

Our ambition is to grow overall student numbers from a baseline of 2,270 FTE to 2,870 FTE. Student FTEs in 2024 surpassed the target for the year by 15, demonstrating excellent progress towards the plan target of 2,870.

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Impact through creative research, innovation and partnership

We contribute new knowledge and innovation in society and the wider economy through research which is groundbreaking, dynamic and experimental. We work in partnership with organisations and individuals that share our values and ambitions, and develop new forms of creative collaboration.

Our focus to 2027 and beyond is to create the environment in which our researchers can thrive and collaborate to deliver excellence and impact. We continue to establish new research labs as place-based centres for the concentration of our research, innovation and knowledge exchange activities. Our labs will provide richer ways to collaborate, facilitate research intensity and growth, develop our research culture, support internal collaboration, and create the conditions to attract new and more diverse research partnerships, grow income, and achieve impact.

Over the past year we achieved our objectives, most notably through the ongoing implementation of our Research Strategy, by defining our REF 2029 workstream objectives and timetable, and through finalising and implementing research strategies for each of our individual schools. Alongside this, we continued to develop our expertise in practice-based research, including the piloting of a new template for the presentation of creative practice research to REF 2029. We also generated a new Knowledge Exchange and Innovation Strategy, which was approved by the School’s Senior Leadership Group and Board of Governors. We will deliver against this five-year strategy, which has received SFC approval.

Reflecting on the objectives we set ourselves for 2024/25, we have:

In the year ahead, we will formally launch Civic Lab with key projects, appointments and a strategy. We will also work with our partners to develop a collaborative AHRC Creative Clusters proposal to support Glasgow’s creative economy through innovative research and knowledge exchange. We will continue to participate in the Glasgow Life/Glasgow City Council pilot project ‘The Sauchiehall Street: Culture and Heritage District’ and the development of their 10-year strategy, ensuring that the GSA is an active partner, thereby maximising education, research and civic opportunities.

We will commence the delivery of our new AHRC Doctoral Focal Award programme in 2025/26, seeking to secure additional funding for an expanded programme of training, knowledge exchange, wellbeing initiatives, and place-based initiatives across Scotland’s doctoral and small-specialist communities, supported by a network of ‘micro labs’.

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The implementation of Impact through creative research, innovation and partnership is monitored through a series of Lead Indicators:

l Research Excellence Framework - Impact The percentage of REF Impacts rated 4 and 3, combined. Although it is only possible to measure this Lead Indicator at each REF census date, we have set a target of continuing the trend of growth in the combined total of 4 and 3 impact case studies seen between REF 2014 (80%) and REF 2021 (87.5%), by setting a target of 95% for REF 2029. l Research Excellence Framework – Output The percentage of REF Outputs rated 4 and 3, combined. The REF output lead indicator can only be refreshed at the REF census date, with the next update expected in the 2028/29 report. The target of 85% of research outputs being 4 or 3 by the 2029 REF is ambitious but achievable given excellent progress (on target) at the last census date. l Postgraduate Research Student Population Headcount. Our ambition is to grow our overall Postgraduate Research population (headcount PhD and MRes) numbers from a baseline headcount of 60 students to 82 students. Since the baseline was established, we saw an initial decline in 2022, followed by growth annually exceeding the target in 2024. This indicates that the Strategic Plan target should be achievable and taking cognisance of the successful AHRC Doctoral Focal Awards which will support funded PhDs over the next few years.

l Total Research Grant and Contract Income From the audited Annual Report and Financial Statements.

Annual research income is comprised of core research funding in the form of the Research Excellence Grant (REG), and earned research income. Previous Annual Report and Financial Statements have not shown the REG element; for completeness these have been added to previous years to allow comparison. The data demonstrates that, overall, the School’s research income has reduced year-on-year, with the exception of 2022/23. While earned research income has fluctuated and is impacted by bid velocity and success, the underlying position of the REG funded by Scottish Funding Council is real-terms decline.

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A sustainable, independent art school

Our Strategic Plan commits us to being a sustainable, independent art school, with our professional services delivered efficiently and effectively, and focused on our shared commitment to the highest levels of student and staff experience. This means that we need to consider improvements in the way we work, and the vital role that all of our staff play in contributing towards the GSA achieving its strategic ambitions. Our enabling strategies will help us to achieve this. Developed and delivered collaboratively, they set the change necessary for us to deliver a world-class experience, and an environment in which to study and work and be financially sustainable.

Reflecting on the objectives we set ourselves for AY 2024/25, we:

People

Ethical Leadership, Voice and Engagement :

Opportunity and Workforce Development:

· We progressed the development of our Career Framework, with the benchmarking of academic roles now complete, and that of professional services and technical roles underway.

Security and Reward:

Fulfilment and Employee Experience:

Respect, Inclusion and Fair Work:

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Estates and infrastructure:

· Completed further works on the Reid Building, including Phase 1 of the clear glass window replacement, and the replacement fire alarm system.

· Progressed the Addendum to the Strategic Outline Business Case for the Mackintosh Building, focusing on architectural stages and cost profile.

Digital Strategy ‘Enablement Phase’:

Finance and funding:

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Engagement:

Over the next financial year , The Glasgow School of Art will review and implement its enabling strategies to reflect the changing operating environment, ensuring that it continues to support the delivery of a sustainable international art school with the highest levels of student experience.

People

Estates and infrastructure:

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Finance:

Engagement:

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Our journey towards a sustainable, independent art school is monitored through a series of Lead Indicators:

Estates & infrastructure

l Operational Carbon Footprint

From the audited Annual Report and Financial Statements.

Following two years of post-pandemic increases, operational carbon emissions have begun to decline, reaching 1,706 tCO₂e in 2024. We are in the process of resetting the lead indicator by adopting the Greenhouse Gas (GHG) Protocol methodology to ensure consistency and accuracy in future reporting. Measures to further improve performance include the continued rollout of the Building Management System (BMS), LED lighting upgrades, and exploration of opportunities for on-site renewable energy generation. While achieving the target of 1,159 tCO₂e per annum remains challenging, the current downward trend and planned initiatives demonstrate our commitment to sustained carbon reduction.

l Quality of the Estate

Non-residential buildings condition assessment category A and B, combined.

Our target is for 75% of our buildings to reach either Condition A (‘as new’) or Condition B (‘sound, operationally safe and exhibiting only minor deterioration’). A sizeable impact has been made in 2024 following a fairly static or declining picture. This has seen us get close to our planned target for the year and renders the plan target of 75% more achievable and realistic.

People

l Staff Engagement

Measured by the response rate to our periodic Staff Survey, transitioning to engagement levels reported through the staff survey.

Averaging the response rates of our 2016 and 2019 staff surveys, we set a baseline of a 62.5% response rate. In 2024 we delivered a new online staff survey across the GSA: 52% of staff participated, with “engagement” at 64%. Employee engagement can be defined as the emotional commitment our colleagues have to their work, the institution and its goals. It is how we ‘feel’ about the GSA. Engagement is a measure of 5 statements relating to a sense of Pride, Care, Advocacy, Discretionary effort, and Commitment. We will continue to progress actions identified in the survey and undertake a pulse survey to track progress in increasing levels of engagement at the GSA in early 2026.

l Staff Turnover

Measured by the annually published University and Colleges Employers Association (UCEA) Employee Turnover Benchmarking dashboard.

Our target is to record turnover with 2% (+/-) of the Scottish median. With turnover of 4.2% in 2021/22, unusually low for GSA and compared to many of our peers, we sat 2.9 percentage-points away from that year’s Scottish median of 7.1%. In 2024/25 our staff turnover has increased to 9.0% - maintaining our target to be no more than 2% tolerance from the Scottish mean.

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Finance

l Operating Surplus

Operating Surplus as a % of total income (excluding exceptional items).

Our target is to achieve an operating surplus equal to 4% excluding any exceptional items (notably those relating to continuing insurance issues). Despite significant budget pressures and a shortfall in Tuition Fee income versus budget, management action mitigated impacts to the extent that an Operating Surplus was achieved. The outcome is significantly closer to the annual target and reverses a long trend of operating deficits through targeted cost control.

l Liquidity

Days ratio of net liquidity to annual expenditure (excluding exceptional items).

Our target is to hold a cash balance equal to 105 days (~3½ months) of operating expenditure at the balance sheet date. The diminishing position seen in previous years is linked closely to the timing mismatches associated with insurance-related spend and associated recovery. The position at the end of 2024 reflects a position above the target by 11 days.

l Gearing

Operating Surplus as a % of total income (excluding exceptional income).

Our target is to maintain a level of borrowing below 45% of total income (excluding exceptional income). With repayment of borrowing, and the natural dilution in gearing as income has continued to grow, we currently live comfortably within that ceiling; and without any current plans for new borrowing, this is expected to remain the case.

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Principal risks and uncertainties

Student Experience

The GSA is committed to the highest levels of student experience, recognising that not achieving sustained improvement in measured student satisfaction will impact on student growth, retention, league table position, and financial sustainability.

Student Numbers

Meeting student enrolment targets within the appropriate fee categories is needed to ensure that the GSA meets its projected levels of income and so protect its financial sustainability. The risks associated with student recruitment are diverse, including competition, demography, geopolitical issues, immigration policies, and both the UK and wider international economies.

The GSA benefits from the high number of applications it currently receives, while remaining cognisant of the risk associated with an overreliance on international student recruitment from across a relatively small number of markets. The GSA will look to strategically manage this risk through market diversification, the introduction of new programmes and modes of study, further enhancements across the applicant journey, and ongoing engagement with the Scottish Funding Council with respect to securing more Scottish-funded places.

Physical and Digital Infrastructure

The GSA’s physical and digital Infrastructure plays an important role in our ability to grow, maintain high levels of student experience, support efforts to improve environmental sustainability, and manage costs. We continue to seek opportunities to rationalise and enhance our infrastructure. In addition, our capital plans are aligned with the highest priorities in terms of regulatory compliance and enhancement, and minimising the risks associated with building, equipment or plant failure.

The reinstatement of the Mackintosh Building is a very complex project that introduces a wide range of funding, logistical, operational, resourcing and other risks that are under continuous review to ensure that they can be adequately mitigated. Our mitigation of that risk focuses on both the careful consideration of the management and phasing of the reinstatement project, and the systematic management of associated financial and cash-flow issues, including the complex insurance claim, application of restricted funds held or pledged to support the project, and progressing, if and when appropriate, the potential for philanthropic support.

Cyber Security

The GSA is aware of the potential financial loss, operational disruption, and reputational damage due to failures or breaches in its digital systems. This is an omnipresent risk facing the institution and we continue to work to ensure that appropriate aspects of IT security are applied at all levels of our network infrastructure, systems and applications, data security, and user access rights, to protect the GSA's digital assets.

Higher Education Funding

All of the above risks, separately and combined, represent a threat to our financial sustainability.

The Scottish Funding Council has been receptive to the sector’s aspiration to see some improvement in the unit of resource for Scottish students, and have signalled their willingness to work with the sector to seek to optimise the distribution of funded numbers among institutions, albeit the overall numbers will remain constrained.

Higher Education Structural Change

The higher education sector is undergoing a period of structural change, including consolidation, contraction, and collaboration, alongside an increased regulatory environment. As a small specialist institution, the GSA needs to augment its academic excellence, size and global position in order to maximise opportunities presented by structural change to ensure its sustainability and independence.

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Duty to promote the success of the Company

The directors have given careful consideration to the requirements of Section 172 of the Companies Act 2006 to act in good faith to promote the success of the Company for the benefit of its members as a whole, and, in doing so, to have regard, amongst other matters, for :

The likely consequences of any decision in the long term

In 2022, the GSA published ‘Our Plan for Our Future: Strategic Plan 2022-2027’, which articulates the collective ambition for the future direction of The Glasgow School of Art. The Strategic Plan was created through extensive and structured conversations with people who care passionately about the School, alongside a considered evaluation of the economic context in which we will deliver our creative education, research and innovation.

With academic endeavour at their core, our plans set out our ambition to empower change and create impact that is both transformative and collaborative through our people, education, and research. Those plans are founded on enabling strategies which will promote the talents of our staff, the sustainability of our finances, and the effectiveness of our estates and infrastructure.

The interests of the company's employees

Through our People Strategy - an enabler of the GSA Strategic Plan - we remain committed to the delivery of fair work as defined by the Fair Work Convention. Key achievements in 2024/25 included:

The need to foster the company's business relationships with suppliers, customers and others

In 2022, the School developed its first ever Student Partnership Agreement (SPA) with The Glasgow School of Art Students’ Association (GSASA). The SPA underlined our ambition to create a true and meaningful culture of partnership with students that permeates everything we do. This ambition has been taken forward via a range of workstreams embedded through our Education Strategy, and by establishing a range of roles, structures and funds to support partnership at local level. These have included:

The Student Partnership Agreement (SPA) is overseen by our Student Partnership Steering Group, the latter providing a collaborative space for the GSA and the GSA Students’ Association to meet and discuss matters of strategic and mutual priority related to the student voice and partnership. In 2024/25 we completed an evaluation of the SPA, which informed the development of the new Student Partnership Agreement 2025/26 to 2027/28: the latter is designed to enhance our support for student representatives, align our policies and practices to meet sector expectations, and build a culture of partnership-working at all levels.

The GSA Creative Network operates in partnership with departments across the GSA to support graduates and foster artistic collaboration in Glasgow, the UK, and across the world. By helping to facilitate increased engagement between the GSA’s academic schools and targeted alumni cohorts, the Creative Network provides GSA graduates with a structured programme of support, particularly with respect to student experience, employability, and post-graduation opportunities.

Through increased visibility, engagement, and the promotion of graduate activity, we showcase the important contribution that both creativity and creative people play in wider society. Through the delivery of Glasgow’s largest creative industry networking event,

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‘Working Space Live’, the Creative Network connects the GSA’s growing creative community, both locally and globally, providing a valuable resource to our students, graduates, industry partners, and wider networks.

The Glasgow School of Art recognises the part it has to play in delivering the Scottish Government’s objectives for education, research and innovation. The GSA also contributes to the outcomes detailed in the Scottish Government’s National Performance Framework, which describes the kind of Scotland it seeks to create. While the GSA aims to make a broad contribution to a range of those outcomes, our engagement is strongest in the areas of Education, Culture and International.

Many of our courses include ‘live’ industry briefs for our students. We also work with a variety of clients on projects which provide academic benefits and learning opportunities for our students. These projects are directed by a relevant academic, while clients are involved in the briefing and review sessions, giving students the chance to receive direct feedback. As well as providing a range of inspirational and unexpected approaches to a live challenge, the projects often lead to the implementation or further development of ideas in collaboration with the client. In academic year 2024/25, we developed a new Employer Engagement and Partnership Framework, which is designed to structure the GSA’s engagement with employers, industry and third sector partners in a more strategic way. The Framework will support our curriculum, enhance the experience of all students, and prove mutually beneficial to students, the GSA, and our external partners.

The GSA maintains good relationships with its suppliers, and endorses the Confederation of British Industry (CBI) Prompt Payment Code. The GSA’s policy is that payments to suppliers are made in accordance with those terms and conditions agreed between the School and its suppliers, provided that all trading terms and conditions have been complied with.

The impact of the company's operations on the community and the environment

The Glasgow School of Art seeks to be part of Glasgow’s social, cultural and economic life, and to contribute to the life and vibrancy of the city and its reputation as a creative and cultural capital. We maintain regular contact with Glasgow City Council and Glasgow Life, as well as Glasgow’s cultural and creative sector, and a range of local and national agencies involved in the promotion of local economic growth across the city. We are also actively engaged with local authority partners in the Highlands with respect to our Altyre campus.

We deliver a year-round formal programme of exhibitions and events across our galleries and exhibition spaces, and also work in partnership with a range of city-wide venues, contributing significantly to Glasgow’s exhibitions and events ecosystem. Our Archives and Collections, based at the Whisky Bond and Window on Heritage in the Reid Building, continue to have accreditation from Museums and Galleries Scotland. The School’s heritage brings local, national and international engagement, both in the work of Charles Rennie Mackintosh and his peers, as well as through our extensive non-Mackintosh collections and archives, which articulate art, design and architecture education since 1845, and which comprise important and significant collections in their own right.

Our community and civic engagement are rooted in the relationship we have established with our closest neighbours, the city we are inextricably part of, and the wider West of Scotland region. Through our widening participation work, we engaged 369 pupils from the most disadvantaged communities in creative courses, supporting their entry to higher education. 144 schools were engaged, including a number in remote rural and island communities where online delivery supported their access to the GSA’s pre-entry activity and creative curriculum.

We maintained our commitment to achieving our SIMD20 targets, extending our activities to meet wider institutional underrepresentation, specifically in relation to ethnicity. The GSA continued to be one of the highest performing HEIs in Scotland for widening access, exceeding the Scottish Government’s Commission on Widening Access 2030 target, and we continue to develop and extend our relationships with college partners through our Associate Student routes with Glasgow Clyde and Forth Valley colleges, supporting formal articulation routes to study at the GSA.

The Glasgow School of Art has a dedicated Community Engagement Officer who works with a wide range of local stakeholders and community groups in the surrounding neighbourhood of Garnethill through partnerships and creative projects. The continued partnership with Castlehead High School in Paisley as a School of Creativity was highlighted throughout the year as good practice, with an extensive profile in the Future Paisley Final Report, and also in the broader discussions on Creativity in the Curriculum through Education Scotland. Over the past year, we have been closely involved with Glasgow City Council’s emergent National Lottery Heritage-funded project, Sauchiehall Street: Culture and Heritage District , which included an exhibition in the GSA’s Garnethill Gallery, ‘ Migrant Garnethill’ ; undertaken in partnership with students and ESOL (English for Speakers of Other Languages) volunteers from St Aloysius Church as part of the wider Glasgow Life initiative ‘ Uncovering Sauchiehall Street’ . Through archive visits and workshops, the group traced the histories of migrant communities who have settled in Garnethill over the past century.

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Strategic report

The desirability of the company maintaining a reputation for high standards of business conduct

After student tuition fees, the Scottish Funding Council (SFC) is the largest source of income for The Glasgow School of Art. SFC funding comprises the main teaching grant, research and innovation funding (including Knowledge Exchange and Innovation Funding), capital funding, and specific funding related to strategic priorities, including widening participation, articulation, and museums, galleries and collections grant funding. Across all SFC funding, the GSA is required to report annually alongside the Outcomes Framework and Assurance Model. The Outcomes Framework sets out the SFC’s expectations of colleges and universities in return for the funding they receive, but does not specify targets or bespoke expectations for each institution. Outcomes are instead expressed more generally across a broad range of areas that matter to students, employers, the Scottish Government, and other key stakeholders.

Demonstrating our commitment to high-quality learning, teaching and support, the GSA’s new Education Strategy was approved in 2023. Over the past two years, a series of key actions were approved and monitored, while an Action Plan and associated projects are now in place for 2025/26. We are proud to see several Education Strategy projects become ‘business as usual’ for the GSA, and the collaborative approach taken in developing and successfully delivering on the Strategy, with contributions from colleagues across the School.

We have progressed our Common Academic Framework (CAF), successfully approving 17 programmes, with the remainder due to be completed in 2025/26. We have also approved a new Supporting Student Continuation, Progression and Retention Policy. In addition, a Portfolio Review was undertaken, and we continue to develop and deliver new programmes which challenge our existing modes of delivery and focus on attracting new learners to the GSA. In 2023/24, the Quality Assurance Agency for Higher Education (QAA) expressed confidence with The Glasgow School of Art’s progress in continuing to monitor, review and enhance its higher education provision to enable effective arrangements to be in place for managing academic standards and the quality of the student learning experience. In 2024/25 we began to scope and plan for our Tertiary Quality Enhancement Review, which is scheduled for 2027/28.

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Strategic report

Financial review

Financial objectives

The importance of financial sustainability ranks alongside academic sustainability and is a stated objective within the Strategic Plan (2022-2027). The Glasgow School of Art aims to achieve a maintainable annual core operating surplus through a combination of student number targets across all academic schools, along with growth and diversification of research income. In tandem, the GSA will seek to achieve cost efficiencies through harmonisation of the academic programme and associated structures, along with more efficient and effective use of the estate, and enhanced digital infrastructure and resilience. Such measures will be further enhanced through improved environmental sustainability, procurement, and supported by the highest levels of governance.

Financial strategy

The GSA’s forward financial plans have been developed to be reflective of the ambitions set out in our Strategic Plan:

Financial performance

This year, the Group reported a surplus of £7.9m (2024: £0.2m) and total comprehensive income of £9.1m (2024: deficit £18.2m).

These results include items of an exceptional and non-recurring nature, including, in particular, insurance income in relation to claims for expenditure around the 2018 Mackintosh fire; and the financial impacts of the pension valuation, without which the underlying surplus and the total comprehensive income would have been a surplus of £1.0m (2024: deficit £0.8m).

The following table shows the underlying performance for the year by adjusting for the impacts of those exceptional and nonrecurring items:

recurring items:
Surplus
for year
Total
comprehensive
income
£000
£000
As reported in the financial statements
Pension related
FRS 102 pension cost adjustment – to staff costs
FRS 102 pension cost adjustment – to finance costs
Actuarial impact of asset ceiling
Insurance related
Insurance income
Other comprehensive income
Change in value of Heritage assets
Underlying Surplus		 7,924
9,141
1,104
1,104
27
27
(1,131)
(8,086)
(8,086)
(86)
969
969

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Strategic report

Income

In 2024/25, the Group saw total income grow by £ 12.6 m to £6 0 .4m (2024: £47.8m). Excluding the £8.0m exceptional insurance income recognised in the current year and the net return on pension assets, underlying income grew £ 5.5 m (1 2 %) to £52.4m (2024: £46.9m), driven primarily by continued growth in international student numbers and an associated expansion of our student residence provision.

The trend of steady growth in tuition fees continued in 2024/25 with an increase of £5.9m (25%) to £29.6m (2024: £23.6m); in common with previous years, however, the total fell short of the ambitious targets that we had set ourselves, which has contributed to a reduced operating surplus.

Continuing the trend of the previous year, 2024/25 saw growth in the fees from home students of £1.0m (41.1%) year-on-year, reflecting the Scottish Funding Council’s cap on recruitment of undergraduates, despite significant unsatisfied demand among qualified applicants to the GSA. In keeping with previous years, an increase of £0.6m (17.0%) in fee income from students attending from England, Wales and Northern Ireland was achieved. For the same period, there was, again, a significant increase in international fee income this year of £4.9m (30.5%), continuing to reflect buoyant demand for places from international students.

Against the generally flat-cash distribution of teaching and research grants across the sector, at £16m, the GSA’s Funding Council Grants reduced £0.2m year-on-year. An increase related to the GSA’s receipt of additional recurrent funding from SFC to maintain and enhance the reputation of Scotland’s ‘world-class’ small specialist institutions amounted to £0.9m (25.6%), however this was offset by a reduction of £1.0m (11.1%) to the main teaching grant. This is a result of an overall rebalancing exercise by the Scottish Funding Council.

This year saw a marginal fall in income from research grants £0.1m (4.9%). The GSA’s research grant income typically comprises a core portfolio of ‘standard’ research projects along with a very small number of disproportionally large innovation projects, whose award can be irregular, meaning that their initiation and completion can lead, as has been seen in recent years, to volatility in the annually reported research income.

Other income saw marginal overall growth of 0.5% to £4.8m (2024: £4.8m): Residence Income grew by £0.2m (5.5%) compared to 2023/24, primarily reflecting an expansion of provision to accommodate growing demand, while commercial and other income fell by £0.2m (9.2%) to £1.5m (2024: £1.6m).

Importantly, a receipt of £8.1m was received in 2024/25 in

relation to Insurance proceeds related to the consequential actions to maintain and preserve the Mackintosh Building following the 2018 fire. This income is considered exceptional as it does not form part of the core operations of the School. The timing of this receipt does materially impact the income for the year, as well as the bank balances being brought forward to 2025/26, accounting for a significant movement in the School’s current assets.

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Strategic report

Expenditure

In 2024/25, the Group saw total expenditure grow by £ 4.5 m (9%) to £52.6m. Excluding the exceptional movements associated with pension service costs, there was an underlying increase of £3.2m (7%).

Despite a concerted effort to contain staff costs to mitigate both a shortfall in targeted tuition fee income and to preserve cash balances in lieu of insurance receipts, total staff costs grew by £2.1m (7.5%) to £31.5m (2024: £29.3m). That growth combined the effects of the 2024/25 national pay increase and routine salary scale progression. A part-year impact was also felt due to changes in National Insurance contributions resulting from both reductions to thresholds and increases to rates from April 2025. The full-year impact of falling employer contribution rates associated with the Strathclyde Pension Fund (to 6.5%) also fed into this outcome.

Efforts were made in-year to contain operating costs in response to in-year income pressures, however other operating expenses grew by £2.1m (13.1%) to £18.2m (2024: £16.1m). The increase was principally seen in premises costs, with an annual rise of £1.6m (38.3%), in part attributable to dilapidations which fell due on vacation of rented space at

Pacific Quay (as alternative space was leased at West Regent Street). In addition, investment to accommodate student growth in the Haldane Building was made.

A net return on the Strathclyde Pension Fund precipitated a net credit on Interest and other finance costs of £0.9 m (2024: £0.9 m ). At £20k (2024: £22k), interest on borrowing was broadly flat. A £936k net return on the pension scheme, compared to last year’s net return of £887k, saw a non-cash movement of £49k.

Depreciation for the year of £2.9m (2024: £2.7m) grew by a modest £0.2m.

Other comprehensive income and expenditure for the year included the fifth successive and more substantial actuarial gain of £9.3m (2024: £0.8m), arising from the GSA’s participation in the Strathclyde Pension Fund, which, however, was masked and the historic effects reversed by the actuarial instruction to implement a ceiling on the Pension Asset’s disclosure, precipitating a reported actuarial loss of £19.1m (see note 20). In addition, there was a modest increase of £86k (2024: £35k reduction) in the value of our heritage assets as a result of new acquisitions, the most prominent being Alastair Gray / John Byrne donations and work from Hock Aun Teh.

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Strategic report

Financial position

At the end of the year, the Group had net assets of £70.0m (2024: £61.1m), representing an increase of £8.9m on the previous year. This increase is principally attributable to the receipt of insurance income (£8.1m) towards the year-end, increasing bank balances back to target levels of liquidity. The £3.7m increase in fixed assets to £105.5m (2024: £101.7m) reflects capital expenditure during the current year, offset by depreciation. The net £0.1m growth in investment assets to £6.2m (2024: £6.1m) reflects the performance of financial markets over the period.

Significant movements in the valuation of the Strathclyde Pension Scheme following the actuarial review at 31 July 2025 do not have an impact on the School’s financial position – this is due to the application of an asset ceiling. The review showed a £9.1m growth in the net pension asset from £19.3m to £28.4m, attributed to a £5.4m growth in the Scheme’s assets, to £74.0m complemented by a £3.8m reduction in the scheme’s liabilities, to £45.6m. In keeping with the approach among Local Government Pension Scheme practitioners and consistent with our basis last year, the asset ceiling calculated by the actuary reduces the GSA’s pension surplus to £nil at this year-end.

Over the period, net current assets rose by £3.5m to a net current asset of £3.0m (2024: £0.5m liability):

Movement on reserves

During the year, the Group’s reserves increased by £9.0m to £70.0m (2024: £61.1m). Analysing that movement:

Treasury management, cashflow and liquidity

The financing, liquidity and exposure to financial risk is overseen by the Board through the Audit and Risk Committee and the Finance and Resources Committee. Each year, forecasts are prepared which consider the cash position, given the assumed operational movements and planned investment in fixed assets and working capital. This enables the Finance and Resources Committee to consider any future borrowing requirements in a timely manner.

Non-endowment cash balances are held in interest-bearing deposits with financial institutions. These balances can be invested in major clearing banks. At 31 July 2025, our cash and deposit balances were £15.5m, an increase of £6.5m on the previous year-end (2023: £8.9m), largely reflective of this year’s capital expenditure, offset by the receipt of Insurance payments. Our deposits are currently held as short-term deposits, so show on the Balance Sheet as entirely within cash and cash equivalents.

The return on Endowment Asset Investments, comprising dividend and bank interest, was 2.49% compared with 2.33% in 2023/24. The market value of the total endowment assets held remained at £6.1m, reflecting overall performance of financial markets over the period. The Finance and Resources Committee oversees execution of investment strategies and monitors performance.

Financial risk management

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Strategic report

Singapore. The only foreign currency risk exposure had related to dividend payments from Singapore to GSA and the intergroup balance. This risk has now been removed.

Credit Risk - The Glasgow School of Art is exposed to credit-related losses in the event of non-performance by transaction counterparties but mitigates such risk by reviewing suppliers’ financial accounts and credit scores as part of our tender processes.

Liquidity Risk - Operations are financed by SFC grants, student fees, research and consultancy contracts, and bank balances. In addition, the School has an overdraft facility which it has not utilised. The objective is to ensure a mix of funding methods offering flexibility and cost-effectiveness to match our needs.

Cash Flow Risk - The GSA currently holds £15.5m of cash; there are no restrictions on the use of those funds. With interest rates rising during the period, but with an expectation of earlier expenditure, the cash was held primarily in medium-term bank deposits, being drawn as required to maintain adequate levels of working capital.

Creditor payment policy

The Glasgow School of Art’s policy is that payments to suppliers are made in accordance with those terms and conditions agreed between the School and its suppliers, provided that all trading terms and conditions have been complied with. The School endorses the CBI Prompt Payment Code. At 31 July 2025, the School had an average of 10 days’ purchases outstanding in trade creditors (2024: 13 days). With regard to the late payment of Commercial Debts (Interest) Act 1998, there are no matters to disclose.

Ann Priest, Chair of the Board of Governors 11 December 2025

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DIRECTORS' REPORT

Directors’ report

Board membership

The following persons served as Board members during the year to 31 July 2025, and up to the date of approval of these financial statements:

Appointed by the Board of Governors

Ms Kristen Bennie BA. Independent Governor Professor Graham Caie CBE, PhD, FRSE, FEA, FRSA. Independent Governor Dr Catriona Campbell MBE. Independent Governor (from 17 April 2025) Professor Stephen Hodder MBE, PPRIBA. Independent Governor Dr Kate Lampitt Adey BA (Hons), MLitt, PhD. Independent Governor Ms Sarah Lavers BA (Hons) PG Dip Fine Art, CPFA. Independent Governor (from 3 February 2025) Dr Simon Learoyd BA (Hons), PG Cert, MSc, PhD. Independent Governor Ms Jane Morrison-Ross Independent Governor (from 5 February 2025) Ms Ann Priest MBA, FRSA, CText FTI. Independent Governor Mr Harry Rich LLB (Hons), FRSA, CCMI. Independent Governor Mr James Sanderson BA (Hons), Dip Arch, RIBA, RIAS. Independent Governor Professor Adrienne Scullion MA, PhD, FRSA, FRSE. Independent Governor Dr Graham Sharp BSc (Hons), LLB, MSc, DPhil, CA. Independent Governor Professor Andrea Siodmok OBE, Hon DCL, BA (Hons), EMPP, PhD, FRSA. Independent Governor Mr Andrew Sutherland BAcc, CA, MCICM. Independent Governor Professor Anne Trefethen FREng. Independent Governor Ms Marion Venman LLB (Hons), DipLP, NP, D.Univ. Independent Governor (from 14 March 2025) Mr Tsz Wu BA (Hons), MDes. Independent Governor

Governor Ex Officio

Professor Penny Macbeth BA (Hons), MA, FHEA.

Director and Principal of the School

Elected Staff Governors

Mr David Nutter BA (Hons), PG Cert, M.Ed., SFHEA. Elected by the Academic Staff Ms Jacqueline Coyle Dow Elected by the Professional Support Staff

Student Governors

Ms Alicia Bickerstaff Mx Rachel Dennis Mr Rufus Horton Miss Charli Runcie

President of the Students’ Association (until 31 July 2025) Vice-President of the Students’ Association (until 31 July 2025) President of the Students’ Association (from 1 August 2025) Vice-President of the Students’ Association (from 1 August 2025)

Trade Union Governors

Mr Thomas Greenough BA (Hons). Mr Craig Laurie

Trade Union Governor (Academic Staff) Trade Union Governor (Professional Support Staff)

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Directors’ report

Environmental sustainability

The Glasgow School of Art remains committed to sustainable values and to achieving net zero carbon emissions by 2037. The GSA’s strategy and actions are based on the aim of reducing the School’s environmental, social and ethical impacts, with specific objectives related to the efficient management of our estate, and full awareness of sustainability values and issues across the curriculum. The GSA community is encouraged to reduce energy, water and resource use, and support Scotland’s future artists, designers and architects to react to, work with, and communicate climate change in a positive and creative way.

During the initial refurbishment of the Stow Building, the GSA employed Salix loan funding to make significant environmental improvements to the fabric and running costs of a building that had altered little since the 1930s. Recent improvements to that building seek to maintain a trend of enhanced environmental performance, specifically through a material reduction in the building’s heat demand, and, more generally, through more efficient mechanical, electrical, public health and ICT installations, thereby serving as a blueprint for future estates development.

Consistent with our Estates Strategy, we have continued to develop our approach to realising a net zero strategy. On the road to net zero, one of the principal means by which an organisation’s greenhouse gas emissions are measured and assessed is by looking at them within three different ‘scopes’, thereby seeking to understand and measure the source of emissions. The three scopes are a means of categorising the different kinds of emission that an organisation creates, both in terms of its own operations and in its wider ‘value chain’ (its suppliers and customers).

The Glasgow School of Art has fully reported on its Scope 1 and 2 emissions, and extended, year-on-year, the range of Scope 3 emissions on which it reports to include transport, travel, and its supply chain.

UK Energy use and greenhouse gas emissions (interim figures, subject to change):

Source Units Scope Consumption Consumption Emissions(tCO2e) Emissions(tCO2e)
2024/25 2023/24 2024/25 2023/24
Gas
Propane
Bioenergy
Electricity consumption
Electricity transmission
Refrigerants
Waste
Water
Transport - public
Transport - van/HGV
Transport - car
UK Hotel stay
Overseas Hotel stay
Material use
Homeworking
Supplychain		 kWh
litres
tonnes
kWh
kWh
kg
tonnes
m3
passenger km
miles
km
Room per night
Room per night
tonnes
FTE working hour		 Scope 1
Scope 1
Scope 1
Scope 2
Scope 3
Scope 3
Scope 3
Scope 3
Scope 3
Scope 3
Scope 3
Scope 3
Scope 3
Scope 3
Scope 3
Scope 3		 5,243,382
10,962
3,215,562
3,215,562
0
140
18,610
343
111
156,609		 5,158,828
193
3,462,184
3,462,184
100
99
47,833
17,686,929
18,540
1,131,329
328
45
-
169,975
-		 959
17
569
60
0
2
2
4
3
52
6,462		 950
8
717
63
193
1
7
4,024
5
182
4
1
-
57
6,083
Total associatedgreenhousegas emissions 8,130 12,294

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Directors’ report

Space-related emissions tCO2 1,609 1,932
Gross Internal Area m2 64,575 65,678
Intensity ratio tCO2/m2 0.04 0.03
People-related emissions tCO2 6,521 10,362
Staff numbers average FTE 352
Intensity ratio tCO2/FTE 29.44

Data Source: PBCCD Report 2023/24 and draft figures for 2024/2025.

Bioenergy and IT recycling data requested: pending response. Supply chain emissions: based on APUC Scope 3 Report 2024/25.

Staff commuting survey: not conducted for 2024/25; therefore, travel emissions are not included. Last date of PBCCD Submission: 30[th] November 2024 for 2023/24 figures.

2024/2025 figures will be submitted on 30 November 2025.

Energy Efficiency and Sustainability Actions 2024/25:

Future Planning and Targets (2025/26):

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Directors’ report

Equality and diversity

Through formal reporting, the Board of Governors ensures that The Glasgow School of Art complies with the Equality Act 2010, the Public Sector Equality Duty, and the Scottish Specific Duties. The Director and Principal provides leadership to ensure that these duties are integrated into the GSA’s strategic aims and operations. The Secretary and Registrar supports the Director and Principal by facilitating reporting and communication to the Board of Governors. Members of the Senior Leadership Group are responsible for implementing equality policies and actions effectively within their respective areas of responsibility.

In January 2023, following a 2020 Memorandum of Understanding to enhance compliance with the Public Sector Equality Duty, the Scottish Funding Council and the Equality and Human Rights Commission published National Equality Outcomes (NEOs) to address persistent inequalities in the tertiary education sector. Developed through wide consultation with equality practitioners and individuals with lived experience, the NEOs align with existing SFC research and data. The Glasgow School of Art has committed to adopting all NEOs and integrating their delivery within its own equality action planning and reporting processes. Those National Equality Outcomes are:

Age:

Disability:

Gender Reassignment:

Race:

Sex:

Sexual Orientation:

The Glasgow School of Art (GSA) has made significant progress in mainstreaming equality, diversity and inclusion. Progress against the National Equality Outcomes (NEOs) includes improved data collection, policy development, increased disability disclosure among staff and students, and higher satisfaction with reasonable adjustments. Work continues to address underrepresentation, support mental health, and improve racial diversity across governance, staff and student populations. Further details can be found in the GSA Mainstreaming-Equality-Reports-2025.docx

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Directors’ report

Employment of disabled persons

The Glasgow School of Art is committed to being an inclusive and supportive employer, ensuring that people with disabilities are valued, respected, and enabled to thrive. We promote equality of opportunity at every stage of employment and continue to strengthen our approach to accessibility and wellbeing.

In 2024/25, we introduced a Supporting Inclusive Wellbeing Toolkit to help managers and employees work together to identify and remove barriers, provide appropriate workplace adjustments, and foster a culture of understanding and inclusion.

The GSA ensures that:

The GSA aims to ensure that the recruitment, training, development, and promotion of people with disabilities are fair, equitable, and fully inclusive.

Responsibilities of the Board of Governors for accounting and the financial statements

In accordance with The Glasgow School of Art’s formal governance arrangements, the Board is responsible for the administration and management of the affairs of the GSA and is required to present audited accounts for each financial year.

The Board considers that the Group and the School has adequate resources to continue its operations for the foreseeable future. For this reason, it continues to adopt the going concern basis in preparing the financial statements.

The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the GSA and to enable it to ensure that the financial statements are prepared in accordance with 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 addition, within the terms and conditions of the Financial Memorandum agreed between the Scottish Funding Council and the Board of Governors, the Board, through its designated office holder, is required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and the School, and of the surplus or deficit and cash flows for that year.

In preparing the financial statements, the Board has ensured that:

The Board has taken all reasonable steps to:

To the knowledge and belief of each of the persons who are directors at the time the report is approved:

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Directors’ report

Auditor

The Board approved the appointment of AAB Audit & Accountancy Limited as Auditor on 10 December 2024.

AAB Audit & Accountancy Limited will be proposed for re-appointment in accordance with Section 485 of the Companies Act 2006.

Post-balance sheet events

There have been no significant events affecting the Group or the School since the year end.

By order of the Board

Ann Priest , Chair of the Board of Governors 11 December 2025

Professor Penny Macbeth , Director and Principal 11 December 2025

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CORPORATE GOVERNANCE

Introduction

The School’s governance arrangements are defined through an Order of Council derived from the Further and Higher Education (Scotland) Act 1992. The School is also a Company Limited by Guarantee. The School’s Statement of Corporate Governance - reviewed and approved by the Board of Governors on an annual basis - complies with the high-level principles contained within The Scottish Code of Good Higher Education Governance.

In March 2023, a revised version of The Scottish Code of Good Higher Education Governance was published. In line with the expectations of the Scottish Funding Council, The Glasgow School of Art adopted the 2023 version of the Code in session 2023/24, and continued to develop the Corporate Governance function in line with the new Code throughout session 2024/25. [See section: ‘The Scottish Code of Good Higher Education Governance’.]

The undernoted sets out the manner in which the School has applied the principles set out in the Code, and follows the format set out by the Scottish Funding Council’s Accounts Direction for Scotland’s Universities 2024/25 (issued on 7 August 2025), and the SFC Financial Memorandum. Its purpose is to enable the reader of the financial statements to understand how these principles have been applied.

Governing Body

The Board of Governors (the Board) is the governing body of the School and holds to itself the responsibilities for the ongoing strategic direction of the institution, as well as full consideration and approval of major developments and receipt of regular reports from executive officers on the day-to-day operations of its business.

The Board met four times in session in 2024/25 (October, December, March and June) and held an annual away-day in February 2025 which focused on strategic matters and the future direction of the School. From session 2025/26 onwards, the first Board meeting of the session will take place alongside the annual away-day in the autumn. At each of the standard Board meetings in the year reported, the Board received an executive update from the Director and Principal which set out matters related to the work and progress of the School. The Board also received reports from the President of the Students’ Association, the Secretary and Registrar, the Director of Finance (and, subsequently, the Interim Director of Finance), and the Director of Estates and Infrastructure. As a matter of course, the Board also received the minutes from Academic Council and from each of the Board committees that had met in the preceding period.

The Academic Council is the principal academic body of the School. The remit of the Academic Council is specified in the School’s Articles of Association and represent delegated functions from the Board, namely:

The roles of Chair and Vice-Chairs of the Board are separated from the role of the School’s Chief Executive, the Director and Principal. Pursuant to the Articles of Association, the Director and Principal discharges those functions of the Board of Governors related to the organisation and management of the School, and, with the advice of the Academic Council, the overall planning, development and supervision of the academic work of the School. The Chair’s responsibilities include leading the Board, promoting its effective operation, and ensuring that its members work together effectively and have confidence in the procedures laid down for the conduct of business. Ultimately, the Chair is responsible for the conduct and effectiveness of the business of the Board of Governors. Further details regarding the role of the Chair are set out in the Statement of Corporate Governance, a link to which is published on the School’s website.

The Board Intermediary is a point of contact for members of the Board in the event that they wish to raise an issue regarding the conduct of the Board or the Chair. The Board Intermediary is also responsible for leading the Board in conducting the annual appraisal of the Chair. This role is currently held by one of our independent governors.

The Secretary and Registrar maintained regular contact with the Chair throughout the period to ensure that the conduct of the Board’s business was carried out in accordance with the Statement of Corporate Governance, The Scottish Code of Good Higher Education Governance, and the School’s legal instruments. Previous Board agendas and minutes are made accessible via the School’s website, with Board papers available on request. Agendas and minutes are normally published following approval of the minutes at the subsequent meeting of the Board of Governors.

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Governance Arrangements

The Secretary and Registrar, in consultation with the Chair of the Board, ensured that the GSA’s governance arrangements remained robust and appropriate, and that governance-level decision-making continued to operate through the established formal Board committee structure.

With regard to Board committees, these meetings were held via videoconferencing in session 2024/25, unless otherwise preferred by the convenor of the relevant committee. During this year, Board meetings were held in person (with the option for members to join via videoconference). These arrangements for the Board and its committees have become the established mode of operation.

Statement of Primary Responsibilities and Schedule of Delegation

In accordance with the Code, the Board has a Statement of Primary Responsibilities and a Schedule of Delegation, which state those matters which are reserved for the consideration of the Board, and those which have been formally delegated. These are set out in full in the 2024/25 Statement of Corporate Governance.

The current Statement of Primary Responsibilities provides detail regarding the following responsibilities of the Board:

  1. To ensure the effective management of the School and to play a key role in the development, approval and review of the mission and strategic vision of the School.

  2. To be the principal financial and business authority of the School.

  3. To safeguard the reputation and values of the School.

  4. To ensure the quality of institutional educational provision is upheld and to ensure the defence of academic freedom.

  5. To make such provision as appropriate for the general welfare of students, in consultation with the Academic Council.

  6. To ensure that systems and policies are in place for meeting all of the School’s legal and regulatory obligations.

  7. To oversee and monitor the development and implementation of the School’s Strategic Plan.

  8. To appoint a Chair of the Board of Governors, one or more Vice Chairs, and independent governors.

  9. To appoint the Director and Principal of the School, and the Secretary to the Board.

  10. To advise on the appointment of the Deputy Directors of the School, and the Director of Finance.

  11. To ensure the establishment and monitoring of systems of control and accountability, including financial and operating controls and the Risk Management Framework.

  12. To ensure that processes are in place to monitor and evaluate the performance and effectiveness of the School.

  13. To establish processes to monitor and evaluate the performance and effectiveness of the Board of Governors.

  14. To conduct its business in accordance with best practice in higher education corporate governance and with accepted standards of ethics and behaviour in public life.

  15. To determine and review the remuneration of those senior staff members whose salaries are not included within national pay scales.

  16. To form, and receive regular reports from, committees to consider major areas of activity.

  17. To support and enable the effective functioning of the Students’ Association.

  18. To satisfy itself that the School operates with high levels of social responsibility.

  19. To take all final decisions on matters of major concern to the School.

The Schedule of Delegation records the delegated authority for decisions taken in the name of, or on behalf of, the Board. As part of the Statement of Corporate Governance, the Schedule is reviewed and formally approved by the Board on an annual basis. The general principles of the Schedule of Delegation are set out below:

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The Board has ultimate responsibility for the effective operation of the School, and, following common practice, delegates much of the detailed review to Board committees. The extent of that delegation is detailed within the Board Committee Remits and Memberships document, which is reviewed and approved by the Board on an annual basis, and made accessible via the School’s website. [See: ‘Board Committees’ for a brief overview of each committee remit.]

The Board committees underwent a restructuring exercise in advance of session 2024/25 to address a number of recommendations in the external Governance Effectiveness Review. The Board agreed to adopt a leaner Board committee structure in order to:

The new structure has maximised the efficacy of the Board via the implementation of a rationalised Board committee structure that avoids duplication, fosters assurance and reassurance, and enables the Board to focus on strategic rather than operational matters, while also maintaining sight of all key governance and fiduciary issues central to its function.

The timing of the transition to the new Board committee structure necessitated that the first meetings of session 2024/25 functioned under the previous committee remits, memberships and titles, whereas the remaining meetings of the session progressed under the revised remits, memberships and titles. The Health and Safety Committee and the Museum and Archive Committee were both disbanded as part of the restructuring exercise, with their responsibilities redistributed appropriately to other governance and management committees. As such, the Board had the following committees in 2024/25:

All of these committees are formally constituted and are convened by independent governors.

Composition of the Board

The Board comprises independent and academic persons appointed in accordance with the School’s governing instruments, which were last revised in December 2020. The majority of governors are non-executive and independent, serving alongside ex-officio and elected staff, student and trade union governors.

Since 1 December 2020, and in line with its new Order of Council and Articles of Association, the School’s Board of Governors comprises:

During the reporting period:

During the year, the Secretary and Registrar, Ms Emma Williams, continued to act as Company Secretary.

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Staff governors and trade union governors hold office for an initial term not exceeding three years, and may be reappointed for up to two further periods of up to three years. Student governors hold office for an initial term not exceeding one year, and may be reappointed for one further period of up to one year.

Independent governors are appointed for a term of office not exceeding three years, at the conclusion of which they may be reappointed for up to two further terms of three years, subject to review and approval by the Governance and Nominations Committee. The balance of skills and experience among independent governors is monitored closely to ensure that this is sufficient to enable the Board to meet its primary responsibilities and to ensure stakeholder confidence. A register showing the balance of skills, attributes and experience required across the Board’s membership, including attributes and goals (having due regard to applicable law relating to equality and diversity), is published on the GSA’s website.

When an independent governor demits office, or the School seeks to appoint a new governor, the Governance and Nominations Committee, or a subgroup thereof, reviews the balance of skills in the membership of the Board against the Register of the Balance of Skills, Attributes and Experience . This informs the appointment process and supports the School in maintaining a coherent and effectively functioning governing body. The Board also recognises its responsibility to demonstrate leadership in promoting and facilitating equality and diversity, and ensures that, where changes occur in the Board’s composition, due and proper account is taken of aiming for a balance across all protected characteristics, recognised under the Equality Act 2010, as part of the Governance and Nominations Committee’s appointment process.

Following a Board recruitment exercise in winter 2024, four new independent governors were appointed between February and April 2025. In preparation for this exercise, a full review of the Register of Balance of Skills, Attributes and Experience was carried out to help determine the skills required for the Board. New appointees were sought with skills and expertise in the following areas: arts and creative cultures; legal knowledge and understanding; accounting and finance; strategy, innovation, and commercial awareness; and digital futures.

As at 31 July 2025, the School’s Board consists of a total membership of twenty-five members, eighteen of whom are independent governors (including the Chair of the Board): with the gender balance amongst the latter being 53% female: 47% male, achieving the gender representation objective of 50% female non-executive members.

During the period, one independent governor, Dr Graham Sharp, was granted Leave of Absence from their position as member of the Board of Governors, with effect from 1 January 2025 to 31 December 2025.

In accordance with GSA’s governing instruments, the Board may appoint up to two Vice Chairs of the Board of Governors from among the independent governors. Ms Kristen Bennie has held the Vice Chair position since 2022. Following an expression of interest, the Governance and Nominations Committee recommended the appointment of Professor Anne Trefethen as the second Vice Chair to the Board of Governors. Professor Trefethen’s appointment commenced on 29 May 2025.

Induction and Governor Development

All new governors receive a full induction upon joining the Board, with continued support available throughout their time in office. The induction process and information provided is reviewed on an ongoing basis to ensure that it remains current and takes all relevant developments into account. Governors attend a welcome meeting with the Chair of the Board of Governors, followed by a governance briefing session with the Secretary and Registrar, the latter including information on the responsibilities of the Board, an overview of developments in the higher education sector, the School’s Strategic Plan, and the overall governance and financial situation; they are also afforded the opportunity to meet with the Director and Principal, and members of the Senior Leadership Group. In addition, all governors are invited to participate in an annual governance briefing to refresh their knowledge, with this being mandatory for staff and trade union governors.

Throughout the academic session, governors are invited to participate in briefings, presentations and tours to keep members upto-date with developments within the School. These also serve to increase members’ knowledge and sense of connection with staff and students. The School remains committed to governor development, and Board members are kept informed of upcoming seminars and conferences relevant to higher education governance, for example those delivered by Advance HE through its Governor Development Programme. New governors (including student governors) are strongly encouraged to participate in the annual Scotland-specific training session.

The Chair undertakes a review of members’ individual contributions at least every two years, which represents a further occasion for members to identify and seek personal development opportunities. Following completion of the reviews, the Chair: identifies any points to be followed up with individual governors, including any training requirements; any points for wider consideration by either the Governance and Nominations Committee or the Board; and any points to be factored into the wider review of board effectiveness.

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Board Committees

All Board committees continued to meet via video conference in session 2024/25, unless otherwise preferred by the convenor.

As outlined above, the transition to the new committee structure necessitated that the first meetings of the session functioned under previous remits, memberships and titles, whereas the remaining meetings of the session progressed under the revised remits, memberships and, where appropriate, titles. These are detailed below.

The Audit and Risk Committee met four times in session 2024/25: the Internal Auditor was present at all meetings, with the External Auditor present at three out of four. The Institutional Risk Register continues to be scrutinised in detail by the Audit and Risk Committee, with the most significant risks shared with the Board via a Board Assurance Framework. The Audit and Risk Committee is responsible for reviewing the effectiveness of the School’s financial systems, internal control environment, and risk arrangements, providing appropriate assurance to the Board on these areas.

The Business and Estates Committee met once in session 2024/25. The Finance and Resources Committee superseded the Business and Estates Committee in November 2024, extending the remit of the latter by covering the School’s digital and physical estate, and matters related to sustainability. The Finance and Resources Committee met three times in session 2024/25. The Committee is responsible for providing oversight and assurance on the short and long-term financial sustainability and financial resilience of the institution, monitoring income and expenditure, and risks to operating cash and financial sustainability. The Committee has delegated authority from the Board of Governors to monitor performance in the areas of Finance, Estates, and Resources and Assets in their widest sense.

A joint meeting of the Audit and Risk Committee/Finance and Resources Committee took place in session 2024/25 to consider the draft Annual Report and Financial Statements to 31 July 2024, prior to Board approval and submission to the Scottish Funding Council.

The Human Resources Committee met once in session 2024/25 and was responsible for the review and approval, subject to Board amendment, of policies relating to the employment of staff and the monitoring of the effective management of these affairs, along with matters relating to equality. The People and Culture Committee superseded the Human Resources Committee in November 2024, and met three times in session 2024/25. The Committee is responsible for strategic oversight and seeking assurance, on behalf of the Board of Governors, that the Senior Leadership Group, through the School’s People Strategy, policies and procedures, is effectively fostering and managing a positive culture for the School’s staff and students.

The Nominations Committee met once in session 2024/25 and oversaw and recommended to the Board the appointment and renewal of independent governors, and the appointment of Board office-holders. The Governance and Nominations Committee superseded the Nominations Committee in November 2024, expanding the remit of the latter by assuming responsibility for oversight of governance arrangements at the School (this previously sat within the remit of the Audit and Risk Committee), the conduct and effectiveness of the Board, governor development, and the implementation of good governance practice. The Governance and Nominations Committee met three times in session 2024/25.

The Remuneration Committee met three times in session 2024/25. The Remuneration Committee is responsible for agreeing the remuneration of those senior staff not covered through national pay scales, and for considering the terms and conditions and severance payments for such staff (subject to Scottish Funding Council guidance). The work of the Remuneration Committee is governed by the Remuneration Committee Framework. The Framework provides clarity on the circumstances under which remuneration for senior roles should be considered and what the process is, the information that should be used as a basis for decision-making, and the parameters and process for approval.

While not a Board committee, the Steering Group (Mackintosh) is convened by an independent governor. In addition to independent governors, it also includes external members. The Steering Group provides constructive challenge to the Project Development Board (Mackintosh) and offers insights to the Finance and Resources Committee as appropriate. The Board of Governors has overall and final authority for all works on the Mackintosh Building in alignment with the primary responsibilities set out in the GSA’s Statement of Corporate Governance: that is, as the principal financial and business authority of the School, taking all final decisions on matters of major concern to the School. On all matters pertaining to the works of the Mackintosh Building, the Board continue to be informed by the views and recommendations of the Finance and Resources Committee.

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Board Committee Membership

The following persons served on the committees of the Board during the financial year reported in these accounts and into academic session 2024/25:

Audit and Risk Committee:

Mr Andrew Sutherland, Professor Adrienne Scullion, Professor Anne Trefethen (from November 2024), Ms Jacquie Coyle Dow (from November 2024), Professor Penny Macbeth, Ms Sarah Lavers (from February 2025).

Finance and Resources Committee ( formerly Business and Estates Committee ):

Dr Simon Learoyd, Ms Ann Priest, Professor Stephen Hodder, Mr Harry Rich, Mr James Sanderson, Dr Graham Sharp (until 31 December 2024), Professor Andrea Siodmok, Professor Penny Macbeth, Mr Digger Nutter (from September 2024), Ms Alicia Bickerstaff, Ms Jane Morrison-Ross (from February 2025).

People and Culture Committee ( formerly Human Resources Committee ):

Ms Kristen Bennie, Professor Graham Caie, Mr Tsz Wu, Dr Kate Lampitt Adey (from November 2024), Professor Penny Macbeth, Dr Catriona Campbell (from April 2025), Ms Jacquie Coyle Dow, Mr Thomas Greenough, Mx Rachel Dennis (from November 2024).

Governance and Nominations Committee ( formerly Nominations Committee ):

Ms Ann Priest, Ms Kristen Bennie, Professor Graham Caie, Dr Simon Learoyd, Mr Andrew Sutherland, Professor Penny Macbeth, Mr Craig Laurie (from November 2024), Ms Alicia Bickerstaff, Ms Marion Venman (from March 2025).

Remuneration Committee :

Professor Graham Caie, Ms Ann Priest, Ms Kristen Bennie, Professor Anne Trefethen, Mr Digger Nutter, Ms Alicia Bickerstaff.

Board Effectiveness

Following an independent governance effectiveness review of The Glasgow School of Art, undertaken between late August 2023 and early January 2024, a Governance Effectiveness Working Group was established. Led by the Secretary and Registrar, the primary purpose of the Group was to oversee the creation and implementation of a GSA Action Plan to address the recommendations contained within the Governance Effectiveness Report. The Working Group was also tasked with developing a Board Assurance Framework as a strategic means for shaping and informing the work of the Board of Governors, ensuring its alignment to the School’s strategy and key risks, and as a tool for determining the work of, and assurance from, the Board committees.

Throughout 2024/25 the following took place:

Restructuring of the Board Committees

In early August 2024 the Governance Effectiveness Working Group was consulted on proposed changes to the Board committees in line with the proposed committee restructuring. The Group’s subsequent comments helped to inform and shape the revised committee remits and memberships, which were approved by the Board of Governors at an extraordinary meeting held on 21 August 2024.

360-Degree Exercise

A 360-degree review was undertaken between June and July 2024 in order to identify the collective and independent development needs for all members of the Board of Governors and the School’s Senior Leadership Group. The key themes arising from the review will contribute to the design of a Collective Development Plan for the Board, which will be complemented by tailored ‘Contribution Plans’ for Board members aimed at supporting their individual development via a range of elective sessions covering key governance areas.

Oversight of the Governance Effectiveness Programme

In May 2025, oversight of the Governance Effectiveness Programme and accompanying Action Plan moved to the Governance and Nominations Committee.

Effective Report-Writing Workshop

Further to the recommendation contained in the external Governance Effectiveness Report, the GSA partnered with Board Intelligence in October 2024 to deliver a workshop on effective report-writing for members of the Senior Leadership Group, designed to enhance management reporting at Board level in support of governance decision-making and the delivery of the GSA’s strategic objectives. The Corporate Governance Office received positive feedback from attendees, who have implemented techniques covered during the session in their reporting to the Board and its committees.

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Risk Management Framework

The Governance Effectiveness Working Group convened in late 2024 to discuss proposed changes to the School’s Risk Management Framework and Institutional Risk Register (IRR). Both documents continue to provide the mechanisms through which the GSA monitors, manages and mitigates risk, and its appetite for risk, while assurance to the Board is now provided through a Board Assurance Framework, the latter bringing clearer focus to the most significant strategic risks in order to inform the work of the Board. Following feedback from the School’s two fiduciary committees, the format of the Institutional Risk Register was enhanced as the GSA moved to align with the Board Assurance Framework. Under the refreshed Risk Management Framework, the Audit and Risk Committee now monitors and reviews all risks via the Institutional Risk Register, with each Board committee responsible, through the Board Assurance Framework, for highlighting the most significant risks related to their respective remit.

Attendance at meetings between 1 August 2024 and 31 July 2025

The attendance of the individual Governors at Board and principal committee meetings between 1 August 2024 and 31 July 2025 was as follows:

Governor Attendance Board of
Governors		 Audit and
Risk		 Finance &
Resources
(formerly
Business
**& Estates) **		 People &
Culture
(formerly
**HR) **		 Governance &
Nominations
(formerly
**Nominations) **		 Remuneration Joint
ARC
/ FRC
(formerly
Joint ARC
/ BEC)
5* 4 4 4 4 3 1
Ms Kristen Bennie 4 of 5 3 of 4 2 of 4 1 of 3
Ms Alicia Bickerstaff 5 of 5 4 of 4 1 of 1
*		 3 of 4 1 of 3 0 of 1
Mx Rachel Dennis 5 of 5 2 of 3
***		 1 of 1 * 1 of 1 *
Professor Graham Caie 5 of 5 4 of 4 4 of 4 3 of 3
Dr Catriona Campbell 2 of 2
**		 1 of 1
**
Ms Jacquie Coyle Dow 4 of 5 3 of 3
***		 4 of 4 1 of 1
Mr Thomas Greenough 4 of 5 4 of 4
Professor Stephen Hodder 5 of 5 3 of 4 0 of 1
Mr Craig Laurie 5 of 5 3 of 3
***
Dr Kate Lampitt Adey 5 of 5 2 of 3
***
Ms Sarah Lavers 3 of 3
**		 1 of 1
**
Dr Simon Learoyd 5 of 5 4 of 4 4 of 4 1 of 1
Professor Penny Macbeth 5 of 5 4 of 4 4 of 4 4 of 4 3 of 4 3 of 3 1 of 1
Ms Jane Morrison Ross 3 of 3** 1 of 1**
Mr Digger Nutter 4 of 5 4 of 4 1 of 1
***		 3 of 3 1 of 1
Ms Ann Priest 5 of 5 4 of 4 4 of 4 3 of 3 1 of 1
Mr Harry Rich 5 of 5 3 of 4 1 of 1
Mr James Sanderson 5 of 5 4 of 4 0 of 1
Professor Adrienne Scullion 3 of 5 4 of 4 1 of 1
Dr Graham Sharp 2 of 2
****		 1 of 2
****		 1 of 1
Professor Andrea Siodmok 4 of 5 3 of 4 0 of 1
Mr Andrew Sutherland 5 of 5 4 of 4 4 of 4 1 of 1
Professor Anne Trefethen 3 of 5 1 of 3
***		 2 of 3 1 of 1
Mr Tsz Wu 4 of 5 3 of 4
Ms Marion Venman 3 of 3** 1 of 1**
Secretary and
Registrar**		 5 of 5 4 of 4 3 of 4 4 of 4 4 of 4 3 of 3 1 of 1

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** New independent governors were appointed between February and April 2025 with their first formal engagements in the latter half of the session.

*** New committee membership as of November 2024 committee cycle.

**** Dr Graham Sharp commenced a leave of absence on 1 January 2025 (until 31 December 2025).

* Student Governor President and Vice President deputised for one another by way of exception and as agreed with the respective convenors.

** The Secretary and Registrar may attend any meeting of the Board.

Corporate strategy

The Board’s responsibilities include providing input into approving and monitoring the School’s long-term strategic plans. The Director and Principal is responsible for providing governors with advice on the strategic direction of the School. Throughout the course of session 2024/25, the Board received regular reports from the Director and Principal on progress against the GSA’s strategic objectives. The Board also dedicated time during its annual away-day in February 2025 to a detailed review of progress against the strategic lead indicators at the mid-point of the current Strategic Plan, taking account of the rapidly changing operating environment and opportunities for the future.

Risk management

The Risk Management Framework establishes the processes that the GSA follows in order to monitor, manage and mitigate risk and the institution’s appetite for risk across its portfolio of work. This is the overarching approach the School has in place to identify, manage, mitigate and monitor all risks in relation to achieving its strategic objectives and operational performance. The most recent iteration of the Risk Management Framework was reviewed in 2024 as described above. The Institutional Risk Register and associated Board Assurance Framework is comprehensively reviewed annually in line with the development of Annual Implementation Plans, and thereafter reviewed on a quarterly basis. The Framework will also be reviewed in line with the mid-point review of the Strategic Plan.

The School’s Risk Appetite is designed to provide guidance to staff to ensure that they have confidence in being innovative and ambitious or conservative and compliant, and to know the parameters; for example, where it is necessary to refer to the Senior Leadership Group, which will in turn engage with the Board (including Board committees) as appropriate. Overall responsibility for ensuring that the School undertakes activities in line with its appetite for risk lies with the Director and Principal, with the support of members of the GSA’s Senior Leadership Group.

The Senior Leadership Group reviews the Institutional Risk Register on a quarterly basis to consider risks, update mitigations, and amend the risk profile. A senior staff member from the outsourced Internal Audit service attends the Senior Leadership Group on a quarterly basis (prior to the submission of the Institutional Risk Register to the Audit and Risk Committee) in order to review the Institutional Risk Register and to provide external guidance and advice on the scope of assurance for managing risk provided by the GSA’s internal audit programme. In line with the Risk Management Framework, responsibility for reviewing and approving the Institutional Risk Register continues to reside with the Audit and Risk Committee.

The School has in place a Business Continuity Planning Team, the membership of which encompasses the Senior Leadership Group with the addition of co-opted members. Members of the Continuity Planning Team have been selected for their collective understanding of business processes at the GSA, and for their ability to engage others in the detailed planning as well as all phases of managing a major incident. This is updated at least annually and presented to the Audit and Risk Committee. In April 2024 the School’s Business Continuity and Major Incident Response Plan was revised with the addition of a Cyber Incident Response Plan, and in May 2025 the results of a mock cyber training exercise were reported along with the work on Business Impact Assessments for each school and department. The Plan provides the GSA with a framework for managing its response to events that pose a major threat to people, property, reputation or service delivery, and which require special measures beyond the day-to-day to restore operations. The aim of the Plan is to mitigate the impact of major incidents on the School’s core business, and to facilitate community recovery and the restoration of normal services.

Internal control

The Purpose of the System of Internal Control

The Board is responsible for the School’s system of internal control and for reviewing its effectiveness. Such a system is designed to manage, rather than eliminate, the risk of failure to achieve business objectives, and therefore can only provide reasonable, and not absolute, assurance against material misstatement or loss. The process for reviewing the effectiveness of the system of internal control is through management reports, as well as reports from the Internal Auditor to the various committees, and, in particular, the Audit and Risk Committee. The Board of Governors and the Audit and Risk Committee review the Institutional Risk Register. Internal Audit reviews provide a mechanism for the GSA’s approach to risk and business continuity, and these reports are provided to the Audit and Risk Committee in line with the annual Internal Audit Plan.

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Review of effectiveness of the internal control system

The School’s Internal Audit service is outsourced to a professional firm of auditors, which operates in accordance with the requirements of the Scottish Funding Council’s Financial Memorandum. The work of the internal audit service is informed by an analysis of the risks to which the School is exposed, and annual audit plans are based on this analysis. The analysis of risks and the internal audit plans are endorsed by the Board on the recommendation of the Audit and Risk Committee. The Internal Auditor provides the governing body with an annual report on internal audit activity in the School. The report includes the Internal Auditor’s independent opinion on the adequacy and effectiveness of the School’s system of risk management, controls and governance processes.

In November 2025, the Internal Auditor conveyed their Annual Statement of Assurance, confirming that no limitations had been placed on the scope of internal audit and reporting that, in their view, based on the reviews undertaken during the period, and in the context of materiality:

The External Auditor also reports to the Chief Finance Officer and the Audit and Risk Committee on any internal control issues that they identify during their normal audit activities.

The Scottish Code of Good Higher Education Governance

In line with the expectations of the Scottish Funding Council, the GSA adopted the revised Scottish Code of Good Higher Education Governance (published in March 2023) during session 2023/24. In the opinion of the Governing Body, the institution complied with all the principles and provisions of the revised Code through the year. Amendments to existing governance documentation, which were required to reflect updates in the 2023 Code, were approved via Board committees in session 2024/25, and were reviewed in 2025/26 to ensure ongoing compliance.

Going concern

The Group’s and the School’s activities, and the factors likely to affect its future development, performance and position, are set out in the Strategic Report. Its financial performance for the year to 31 July 2025, income and expenditure, assets, liquidity and cash flows, are set out in more detail in the Notes to the Financial Statements. 2020/21 saw the final cohort of students graduate from the academic programmes that we ran in Singapore. The company ceased operations on 31 July 2021. To effect its dissolution, the company entered a Members Voluntary Liquidation on 1 September 2023. GSofA Singapore pte Ltd was dissolved on 3 January 2025 and all remaining balances were transferred to the School. The Group and the School have adequate financial resources, and its current forecasts and projections show it able to manage its activities, having taken account of risks and uncertainties highlighted in the Annual Report and Financial Statements. The Board of Governors considers that the Group and the School has adequate resources to continue in operation for the foreseeable future and, for this reason, the going concern basis continues to be adopted when preparing the Financial Statements.

Conclusion

In conclusion, the Board is satisfied with the corporate governance and internal control arrangements in place.

Ann Priest, Chair of the Board of Governors 11 December 2025

Professor Penny Macbeth , Director and Principal 11 December 2025

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INDEPENDENT AUDITOR’ S REPORT

Audit Report

Independent auditor’s report to the Board of Governors of The Glasgow School of Art

Opinion

We have audited the financial statements of The Glasgow School of Art (‘the institution’ or ‘the School’) and its subsidiaries (the ‘Group’) for the year ended 31 July 2025, which comprise the Statement of Comprehensive Income and Expenditure, Balance Sheet, Cash Flow Statement, Statement of Changes in Reserves, and the related notes 1 to 33, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report below. We are independent of the Group and the School in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Board of Governors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group or School’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 Board of Governors is responsible for the other information. The other information comprises the information included in the annual report set out on pages 1-44, other than the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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Audit Report

Independent auditor’s report to the Board of Governors of The Glasgow School of Art (continued)

Opinion on other matters prescribed by the Scottish Funding Council’s Financial Memorandum with Higher Education Institutions

In our opinion, based on the work undertaken in the course of the audit, in all material respects:

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 Charity Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

Responsibilities of the Board of Governors

As explained more fully in the Responsibilities of the Board of Governors for accounting and the financial statements set out on page 33, the Board (who are Trustees for the purpose of charity law and Directors for the purpose of company law) is 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 Board of Governors 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 Board of Governors is responsible for assessing the Group’s and School’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 Board of Governors either intend to liquidate the institution or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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 the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the Group and School operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements.

The laws and regulations we considered in this context were the Charities and Trustee Investment (Scotland) Act 2005, the Companies Act 2006 and regulation 14 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:

THE GLASGOW SCHOOL OF ART

47

Audit Report

Independent auditor’s report to the Board of Governors of The Glasgow School of Art (continued)

Our approach was as follows:

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

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

Use of our Report

This report is made solely to the Board of Governors, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Our audit work has been undertaken so that we might state to the Board of Governors, as a body, 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 Glasgow School of Art and the Board of Governors as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Shaw for and on behalf of AAB Audit & Accountancy Limited Statutory Auditor 81 George Street Edinburgh EH2 3ES

Date: December 2025

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48

FINANCIAL STATEMENTS

Statement of changes in reserves

Group and School Statement of Comprehensive Income Year ended 31 July 2025

Note
Income
Tuition fees and education contracts
1
Funding body grants
2
Research grants and contracts
3
Other income
4
Insurance income
4
Development Trust income
4
Investment income
5
6
Expenditure
Staff costs
7
Other operating expenses
8
Mackintosh Building debris clearance and stabilisation work
8
Depreciation
12
Interest and other finance costs
9
Surplus/(deficit) before other gains losses and share of operating
surplus of joint ventures and associates
Accumulated income retained within specific endowments
14
(Loss)/Gain on investments - appreciation of endowment assets
14
Surplus before tax
Taxation
11
Surplus for the year
Other comprehensive income
Actuarial gain in respect of pension schemes
28
Revaluation of heritage assets
13
Reserve exchange rate adjustment
Total comprehensive income for the year
Represented by:
Endowment comprehensive income for the year
Restricted comprehensive income for the year
Unrestricted comprehensive income for the year
Revaluation reserve comprehensive income for the year		 Year ended 31 July 2025
Consolidated
School
£000
£000
29,575
29,575
15,780
15,780
1,341
1,341
4,783
4,783
8,086
8,086
-
-
881
881
60,446
60,446
31,472
31,472
18,164
18,164
-
-
2,918
2,918
47
47
52,601
52,601
7,845
7,845
64
64
15
15
7,924
7,924
-
-
7,924
7,924
1,131
1,131
86
86
-
-
9,141
9,141
80
80
-
-
8,975
8,975
86
86
9,141
9,141		 Year ended 31 July 2024
Consolidated
School
£000
£000
23,639
23,639
15,998
15,998
1,410
1,410
4,762
4,762
15
15
4
-
1,952
1,952
47,780
47,776
29,338
29,338
16,057
16,053
-
-
2,701
2,701
22
22
48,118
48,114
(338)
(338)
64
64
499
499
225
225
-
-
225
225
(18,401)
(18,401)
(35)
(35)
-
-
(18,211)
(18,211)
563
563
-
-
(18,739)
(18,739)
(35)
(35)
(18,211)
(18,211)

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Statement of changes in reserves

Group and School Statement of Changes in Reserves

Year ended 31 July 2025

Year ended 31 July 2025
Income and
expenditure
Revaluation
Endowment Restricted reserve reserve Total
£000
£000
£000
£000
£000
CONSOLIDATED
Balance at 1 August 2023 5,535
8,367
49,943
15,419
79,264
Total comprehensive income 563
-
(18,739)
(35)
(18,211)
Transfers between revaluation and income and expenditure reserve -
-
94
(94)
-
Balance at 1 August 2024 6,098
8,367
31,298
15,290
61,053
Total comprehensive income 80
-
8,975
86		 9,141
Exchange rate difference on transfer (27) (27)
Transfers between revaluation and income and expenditure reserve -
-
94
(94)		 -
Balance at 31 July 2025 6,179
8,367
40,340
15,282
70,167
SCHOOL
Balance at 1 August 2023 5,535
7,910
48,731
15,341
77,517
Total comprehensive income 563
-
(18,739)
(35)
(18,211)
Transfers between GSA Development Trust and School restricted reserves 132 132
Transfers between revaluation and income and expenditure reserve -
-
94
(94)
-
Balance at 1 August 2024 6,098
8,042
30,086
15,212
59,438
Total comprehensive income 80
-
8,975
86
9,141
Transfers between revaluation and income and expenditure reserve 1
2
95
(95)		 3
Transfer in on dissolution of GSoA Singapore -
-
1,183
-
1,183
Balance at 31 July 2025 6,179
8,044
40,340
15,203
69,766

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Balance sheets

Group and School Balance Sheet

As at 31 July 2025

Group and School Balance Sheet
As at 31 July 2025
Year ended 31 Jul Year ended 31 Jul Year ended 31 July 2025 Year ended 31 July2024
Consolidated School Consolidated School
Note £000 £000 £000
£000		 £000
Non-current assets
Fixed assets 12 105,505 105,505 105,505
101,741		 101,741
Heritage assets 13 13,974 13,831 13,831
13,888		 13,745
Investments 14 6,179 6,179 179
6,098		 6,098
125,658 125,515 125,515
121,727		 121,584
Pension asset 20 - - -
-		 -
Current assets
Stock 16 196 196 196
185		 185
Debtors greater than one year 17 252 - -
252		 -
Trade and other receivables 17 1,983 1,973 1,973
2,612		 3,396
Cash and cash equivalents 23 15,479 15,479 479
8,942		 6,918
17,910 17,648 648
11,991		 10,499
Less Creditors:amounts falling due within one year 18 (14,906) (14,902) (12,502) (12,482)
Net current assets 3,004 2,746 746
(511)		 (1,983)
Total assets less current liabilities 128,662 128,261 128,261
121,216		 119,600
Creditors:amounts falling due after more than one year 19 (58,059) (58,059) (58,059)
(59,660)		 (59,660)
Provisions
Pension provisions 20 (436) (436) (503) (503)
Total net assets 70,167 69,766 766
61,053		 59,438
Restricted Reserves
Endowment reserve 21 6,179 6,179 6,179
6,098		 6,098
Restricted reserve 22a 8,367 8,044 8,044
8,367		 8,042
Unrestricted Reserves
Income and expenditure reserve 22b 40,340 40,340 40,340
31,298		 30,086
Revaluation reserve 22c 15,281 15,203 203
15,290		 15,212
Total Reserves 70,167 69,766 766
61,053		 59,438

The financial statements were approved by the Board of Governors on 11 December 2025 and were signed on its behalf on that date by:

Professor Penny Macbeth, Director and Principal

Ann Priest, Chair of the Board of Governors

Company no: SC002271

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Statement of cash flows

Group Statement of Cash Flows

Year ended 31 July 2025

Note
Cash flow from operating activities
Surplus/(deficit) for the year
Adjustment for non-cash items
Depreciation
12
(Increase) in stock
16
(Increase)/decrease in debtors
17
(Decrease)/increase in creditors
18
(Decrease) in pension provision
20
Tax paid
11
Staff costs - FRS102 pension adjustment
7
Adjustment for investing or financing activities
Release of deferred capital grants
19
Loss/(gain) on investments
14
Accumulated income of endowment investments
21
Investment income
5
Interest payable
9
Net cash inflow from operating activities
Cash flows from investing activities
Investment income
5
Payments made to acquire fixed assets
12
Cash flows from financing activities
Interest paid
9
New unsecured loans
18,19
Repayments of loan amounts borrowed
18,19
Increase in cash and cash equivalents in the year
Cash and cash equivalents at beginning of the year
23
Cash and cash equivalents at end of the year
23
Increase in cash and cash equivalents in the year		 2025
2024
£000
£000
7,924
225
2,918
2,701
(11)
(15)
629
4,930
2,493
1,698
(66)
(67)
-
-
1,104
(165)
(1,090)
(1,191)
(15)
(499)
(65)
(64)
(881)
(1,952)
47
22
12,987
5,623
881
1,065
(6,683)
(15,658)
(5,802)
(14,593)
(20)
(22)
-
-
(628)
(628)
(648)
(650)
6,537
(9,621)
8,942
18,563
15,479
8,942
6,537
(9,621)

The reconciliation of net debt appears in Note 24.

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53

Accounting policies

Statement of principal accounting policies and estimation techniques Year ended 31 July 2025

1. General information

The Glasgow School Art is a registered company, and its registered number is SC002271. It is also a registered charity in Scotland and its registered number is SC012490. The registered address is 167 Renfrew Street, Glasgow, G3 6RQ. The Glasgow School of Art is registered under The Further and Higher Education (Scotland) Act 1992.

2. Basis of preparation

The financial statements have been prepared in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice), the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), the Accounts Direction issued by the Scottish Funding Council, and the Statement of Recommended Practice: Accounting for Further and Higher Education (2019 edition).

The Glasgow School of Art is a public benefit entity and therefore has applied the relevant public benefit requirement of the applicable accounting standards.

The financial statements have been prepared under the historical cost convention, subject to the revaluation of certain fixed assets.

The effect of events relating to the year ended 31 July 2025, which occurred before the date of approval of the financial statements by the Board of Governors, have been included in the financial statements to the extent required to show a true and fair view of the state of affairs as at 31 July 2025 and of the results for the year ended on that date.

The presentation currency is pounds sterling, and the financial statements are rounded to the nearest £000.

3. Going concern

The Group’s activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic Report. Within that report is a review of the Institution’s financial performance, its cash flows, liquidity position and borrowing facilities.

The Board of Governors has reviewed financial forecasts, including plans for future student recruitment, and after reviewing the assumptions utilised in the forecast scenarios, it is satisfied that the GSA is expected to be able to meet its commitments and obligations for at least the next twelve months from the date of the signing of this report.

The GSA has prepared a 3-year financial plan that forecasts that the Group will generate income and manage its expenditure such that it will generate and maintain sufficient working capital to deliver its activities and projects, and anticipates that the Group will continue to do so over the period of those future financial plans. In addition, the Group continues to carry cash balances to support liquidity in the event of an adverse financial event.

Having taken account of risk and uncertainty, the Board

considers that the School and Group have adequate resources to continue in operation for the foreseeable future, and, for this reason, it continues to adopt the going concern basis of accounting in preparing the annual financial statements.

4. Exemptions under FRS 102

The Group has taken the exemption under section 3.3 of the SORP (1.12(b) of FRS 102) to not produce a cash flow statement for the School, a Consolidated cash flow is, however, provided.

5. Basis of consolidation

These financial statements comprise the results of the School and of its Group. The group financial statements include the School and its subsidiary, GS of A Singapore Pte Ltd. The GS of A Singapore Pte Ltd was dissolved on 3[rd] January 2025 and will therefore no longer be consolidated from 2025/26. The group financial statements also include The Glasgow School of Art Development Trust which has been deemed as being controlled by GSA. Intra-group transactions and balances are eliminated fully on consolidation.

The activities of the GSA Students’ Association have not been consolidated because The Glasgow School of Art does not exert control or dominant influence over the Association’s policy decisions.

6. Recognition of Income

Government revenue grants, including the Scottish Funding Council’s block grant and research grants, are recognised in income over the periods which the GSA recognises the related costs for which the grant is intended to compensate in line with the accruals model. Where part of a government grant is deferred, it is recognised as deferred income within creditors and allocated between creditors due within one year and due after more than one year as appropriate.

Non-recurring grants from the SFC or other Government bodies received in respect of the acquisition of fixed assets are treated as deferred Government capital grants and amortised in line with depreciation over the life of the assets.

Income from contracts and other services rendered is included to the extent of the completion of the contract or service concerned.

Non-government revenue and capital grants are recognised as income once any performance conditions have been met. Income from tuition fees is recognised in the financial period it relates to and includes all fees payable by students or their sponsors. Income from short-term deposits is credited to the Statement of Comprehensive Income in the period in which it is earned. Income from specific endowments, not expended in accordance with the restrictions of the endowment, is transferred from the Statement of Comprehensive Income to specific endowments.

In The Glasgow School of Art Development Trust's financial statements, the pledges and funding from the UK Government and matched funding from the Scottish Government are shown as incoming resources.

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54

Accounting policies

At group level, the funding from the UK and Scottish Governments are in substance deferred Government capital grants and have been treated as such within the Group figures.

Funds received and disbursed as a paying agent on behalf of a funding body or other body, where the GSA is exposed to minimal risk or enjoys minimal economic benefit related to the receipt and subsequent disbursement of the funds, are excluded from the Statement of Comprehensive Income.

Insurance income receipts are recognised in full in year of receipt.

7. Interest receivable

Interest receivable is recognised in the Statement of Comprehensive Income when receivable.

8. Interest payable

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

9. Pension Schemes

The Glasgow School of Art participates in two pension schemes providing benefits based on final pensionable pay, the Scottish Teachers Superannuation Scheme (STSS) and the Strathclyde Pension Fund (SPF). All schemes are available to staff of more than one employer, and the assets of the schemes are held separately from those of School. The Funds are valued by actuaries, the rates of contributions being determined by the trustees on the advice of the actuaries.

Strathclyde Pension Fund

The scheme is a defined benefit scheme and is accounted as a defined benefit scheme under Financial Reporting Standard 102.

Pension scheme assets are measured using market values. For quoted securities, the current bid price is taken as market value.

Pension scheme liabilities are measured using a projected unit method and discounted at the current rate of return on a high-quality corporate bond of equivalent term and currency to the liability.

The pension scheme surplus (up to the value of any actuarially defined asset ceiling) or deficit is recognised in full. The movement in the scheme surplus/deficit is recognised in the Statement of Comprehensive Income.

Scottish Teachers’ Superannuation Scheme

Members of the academic staff are members of the Scottish Teachers’ Superannuation Scheme, to which the GSA contributes. It is not possible to identify each participating institution’s share of the underlying assets and liabilities on a consistent and reasonable basis. Accordingly, the GSA has utilised the provisions of FRS 102, whereby the contributions to the scheme are recognised as if it were a defined contribution scheme. The cost recognised within the Statement of Comprehensive Income will be equal to the contribution payable to the scheme for the year. Under statute, accounts for this scheme are prepared by the relevant body.

A small number of staff are in other defined contribution pension schemes, but the GSA would only contribute if the employee was ineligible to join one of the two main public sector schemes.

10. Employment benefits

Short-term employment benefits, such as salaries and compensated absences, are recognised as an expense in the year in which the employees render service. Any unused benefits, such as holiday entitlements earned but not taken at the balance sheet date, are accrued and measured as the additional amount expected to be paid as a result of the unused entitlement.

11. Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange at the Balance Sheet date. The resulting exchange differences are taken to the Statement of Comprehensive Income in the year.

12. Leased assets

Operating leases and the total payments made under them are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term, in compliance with FRS102 Section 20.

Lease agreements which transfer substantially all the benefits and risks of ownership of an asset are treated as if the asset had been purchased outright. The assets are included in fixed assets and the capital element of the leasing commitments are shown as obligations under finance leases. The lease rentals are treated as consisting of capital and interest elements. The capital element is applied in order to reduce outstanding obligations and the interest element is charged to the Statement of Comprehensive Income on a straight-line basis over the term of the lease. Assets held under finance leases are depreciated over the shorter of the lease term or the useful economic lives of equivalent owned assets.

13. Property, plant and equipment

Land and Buildings

Land is stated at cost or valuation and is not depreciated while buildings are stated at cost or valuation, less a provision for depreciation. The basis of the valuation is depreciated replacement cost. The last valuation was carried out on 31 July 1995 by Grimleys, Chartered Surveyors. All additions since that date have been included at historical cost and their value is deemed to be at least equal to the cost incurred. Buildings are depreciated over their expected useful lives of up to 50 years, with subsequent improvements to buildings depreciated over their useful lives of 15 years.

Costs incurred in increasing the value of a building are capitalised if the cost of the improvement is over £5,000. If the cost incurred is over £5,000, but not considered to increase the value of the building, it will be written off in the year it is incurred. Where the property improvement cost that is to be capitalised has been incurred with the aid of a specific Government grant, it is depreciated as above.

THE GLASGOW SCHOOL OF ART

55

Accounting policies

The related Government grant is treated as a deferred capital grant and released to the Statement of Comprehensive income over the period stated above.

Assets under construction are accounted for at cost, based on the value of architects’ certificates and other direct costs, incurred to 31 July 2025. They are not depreciated until they are brought into use.

Maintenance of Premises

The cost of routine maintenance is charged to the Statement of Comprehensive Income as incurred.

Equipment

All equipment and minor building improvements costing less than £5,000 for an individual item, or group of related items, is written off to the Statement of Comprehensive Income in the year of acquisition. All other equipment is capitalised at cost.

Capitalised equipment is depreciated over its useful economic life as follows:

Where the equipment that is to be capitalised has been acquired with the aid of a specific Government grant, it is depreciated as above. The related grant is treated as a deferred capital grant and released to the Statement of Comprehensive Income over the period stated above. A review for impairment is carried out if events or changes in circumstances indicate that the carrying amount of any fixed assets may not be recoverable. Depreciation is charged from the date of acquisition.

Non-government grants received to fund a capital asset are recognised as income when any performance conditions have been met.

Impairment

A review for impairment of property, plant and equipment is carried out if events or changes in circumstances indicate that the carrying amount of the property, plant and equipment may not be recoverable.

14. Assets held for the Nation: Heritage Assets

The Glasgow School of Art holds and conserves heritage assets for future generations. As a general policy, all heritage assets are recognised in the Balance Sheet. The costs or values have been obtained by a range of independent valuers or, where information on cost or value is not available and the cost of obtaining the information outweighs the benefits to the users of the financial statements, an estimated value is assigned to the asset based on previous valuations and the research, experience and knowledge of staff.

The carrying value of heritage assets is based on the insurance value as at 31 July 2025 and is updated on a quarterly basis to reflect ongoing acquisitions. The carrying value is reviewed where there is evidence of impairment, e.g. where an item has suffered physical deterioration, damage or breakage. Any disposal of heritage assets will be noted in the Balance Sheet and will follow the procedures as set out in section 16 of the Collections Development Policy.

15. Investments

Investments in subsidiary undertakings are stated at cost less provision for impairment in the Balance Sheet.

Endowment Asset Investments are included in the Balance Sheet at market value as at the year-end.

Current asset investments are liquid resources held as a readily disposable store of value. They include term deposits >3 months, government securities and loan stock held as part of treasury management activities. They exclude any such asset ~~s h~~ eld as endowment asset investments.

16. Stocks

Stocks are stated at the lower of cost or net realisable value.

17. Cash and cash equivalents

Cash flows comprise increases or decreases in cash. Cash includes cash in hand, deposits repayable on demand and overdrafts.

Deposits are repayable on demand if they are in practice available within 24 hours without penalty. No investments, however liquid, are included as cash. Cash equivalents include deposits held for a maturity of less than 3 months.

18. Debtors

Short-term debtors are measured at the transaction price, less any impairment.

19. Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

20. Salix loan

Salix is a non-departmental public body, owned wholly by Government, and provides Government funding to the public sector to improve energy efficiency, reduce carbon emissions, and lower energy bills. In line with FRS 102, the School has made an accounting policy choice to recognise this loan as a public benefit concessionary loan, meaning that the loan is recognised at its principal value on initial recognition.

21. SFC University Financial transactions

The SFC University Financial transaction programme for financial year 2020/21 offered access to low-interest loans to support carbon reduction activity, estates development, and the student experience. The GSA was successful in securing access to such a loan for works at the Stow Building. In line with FRS 102, the School has made an accounting policy choice to recognise this loan as a public benefit concessionary loan, meaning that the loan is recognised at its principal value on initial recognition.

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56

Accounting policies

22. Government capital grants

Government Capital Grants, at amounts approved by The UK Government, The Scottish Government, Glasgow City Council, or any other government agency, are treated as a deferred capital grant and are released to income in accordance with the accrual model over the useful life of the asset it relates. The accrual model requires recognition of income on a systematic basis over the period in which the related costs for which the grant is intended to compensate are recognised.

23. Government revenue grants

Government revenue grants are recognised using the accrual model, which means the School recognises the grant in income on a systematic basis over the period in which the School recognises the related costs for which the grant is intended to compensate.

24. Non-government grants

Non-government capital and revenue grants are recognised using the performance model. If there are no performance conditions attached, the grants are recognised as revenue when the grants are received or receivable.

A grant that imposes specific future performance-related conditions on the recipient is recognised as revenue only - when the performance related conditions are met.

A grant received before the revenue recognition criteria are satisfied is recognised as a liability.

25. Provisions

Provisions are recognised when the School or Group has a present legal or constructive obligation as a result of a past event, and if it is probable that a transfer of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the obligation.

26. Financial instruments

The School and Group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at the present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.

However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan at market rate, the financial asset or liability is measured, initially at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument, and subsequently at amortised cost.

Financial assets are derecognised when contractual rights to the cash flows from the assets expire, or when the School or

Group has transferred substantially all the risks and rewards of ownership.

Financial liabilities are derecognised only once the liability has been extinguished through discharge, cancellation or expiry.

27. Contingent assets and liabilities

A contingent asset arises where an event has taken place that gives the School or Group a possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the School or Group.

A contingent liability arises from a past event that gives the School or Group a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the School or Group. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required, or the amount of the obligation cannot be measured reliably. Contingent assets and liabilities are not recognised in the Balance Sheet but are disclosed in the notes.

28. Taxation Status

The Glasgow School of Art is a charity within the meaning of the Charities and Trustee Investment (Scotland) Act 2005 and as such is a charity within the meaning of Para 1 of Schedule 6 to the Finance Act 2010 and is recorded on the index of charities maintained by the Office of Scottish Charity Regulator (Charity No. SC012490). Accordingly, the GSA is potentially exempt from taxation in respect of income capital gains received within categories covered by sections 478-488 of the Corporation Tax Act 2010 (CTA 2010) (formerly enacted Section 505 of the Income and Corporation Taxes Act 1988 (ICTA)) or Section 256 of the Taxation of Chargeable Gains Act 1992 the extent that such income or gains are applied to exclusively charitable purposes. The GSA receives no similar exemption in respect of Value Added Tax. Irrecoverable VAT on inputs is included in the costs of such inputs. Any irrecoverable VAT on allocated tangible fixed assets is included in their cost.

The subsidiary commercial company, GS of A Singapore Pte, is subject to the tax laws of Singapore.

Revaluation gains relate to charitable activities and as such no deferred tax is recognised in respect of these unrealised gains.

29. Endowment funds

Where charitable donations are to be retained for the benefit of the institution as specified by the donors, these are accounted for endowments. There are three main types:

Restricted permanent endowment – the donor has specified that the fund is to be permanently invested to generate an income stream to be applied to a particular objective.

Unrestricted permanent endowment – the donor has specified that the fund is to be permanently invested to generate income stream for the general benefit of the GSA. Restricted expendable endowment – the donor has specified a particular objective allowing conversion of the endowed capital into income.

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57

Accounting policies

30. Critical accounting estimates and judgements

In preparing the financial statements, management is required to make estimates and assumptions which affect the application of accounting policies and reported income, expenses, assets, and liabilities. These estimates and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgement is often required in respect of items where the choice of specific policy, accounting estimate or assumption to be followed could materially affect the reported results or net asset position of the School.

The Governors are satisfied that the accounting policies are appropriate and applied consistently.

KEY SOURCES OF ESTIMATION UNCERTAINTY

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 described below.

Useful lives of property, plant and equipment

Property, plant and equipment represent a significant proportion of the School’s total assets. Therefore, the estimated useful lives can have a significant impact on the depreciation charged and the School’s reported performance.

Where assets are funded by a capital grant which is deferred, the grant is amortised over the useful life of the asset. Like depreciation, therefore, the estimated useful lives can have a significant impact on the deferred capital grant released to income and the School’s reported performance.

Useful lives are determined at the time the asset is acquired and reviewed regularly for appropriateness. The lives are based on historical experience with similar assets as well as anticipation of future events.

The carrying value of tangible assets and the annual depreciation charge for the year are set out in note 12, and deferred capital grant balances and releases are set out in note 19.

Recoverability of debtors

The provision for doubtful debts is based on our estimate of the expected recoverability of those debts. Assumptions are made based on the level of debtors which have defaulted historically, coupled with current economic knowledge. The provision is based on the current situation of the customers, the age profile of the debt and the nature of the amount due.

Obligations under the Strathclyde Pension Scheme and pension enhancements on early retirement

The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and

future pension increases. The assumptions of the scheme’s actuary have been reviewed and are considered reasonable and appropriate.

Due to the complexity of the evaluation, the underlying assumptions and the long-term nature of these plans, such estimates are subject to significant uncertainty. Recognising that, the financial impact of that uncertainty is quantified in the sensitivity analysis of the principal assumptions used to measure the scheme liabilities included in note 28.

KEY SOURCES OF JUDGEMENT UNCERTAINTY

The judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are described below.

Scottish Teachers’ Pension Scheme

Management are satisfied that the Scottish Teachers’ Pension Scheme meets the definition of a multi-employer scheme. As the School is unable to identify its share of the underlying assets and liabilities in that multi-employer defined benefit scheme on a reasonable and consistent basis, it accounts as if the scheme were a defined contribution scheme.

Impairment of fixed assets

Management make judgements as to whether any indicators of impairment are present for any of the School’s assets. There was consequential damage to the Reid, Bourdon and Assembly buildings, arising from the 2018 Mackintosh Building fire. In the aftermath of the fire, the value of those buildings has been impaired, equal to the proportion that the damage element represented of the net book value of the whole asset immediately following the fire.

Following the fire in June 2018, the capital value of the works performed to date in restoring the Mackintosh Building from the first fire in 2014 was fully impaired as part of the financial statements for the year ended 31 July 2018.

Mackintosh project expenditure

The costs incurred in 2018/19 to 2020/21, in respect of stabilising the remaining structure and site clearance costs were expensed. 2021/22 marked a transition from work associated with clearance and stabilisation to one where the preliminary efforts related to the building’s reconstruction began, and, since when, costs incurred in relation to that building are capitalised.

Strathclyde Pension Fund - Pension Asset

The quantum of the asset ceiling calculated by the actuary and applied in the assessment of the recognition of the pension surplus is a key area of judgement, materially impacting the balance sheets’ net assets.

Valuation of heritage assets

The balance sheet valuation of the archives is based on their insurance value and that of the collection assets is based on an assessment of their commercial value. Those sums arise out of the valuations carried out by a range of expert valuers.

Leases

Management make judgement in determining whether a lease should be defined as an operating lease or a finance lease by considering the extent that risks and rewards associated with the ownership of the asset have been transferred to the School. The GSA has not identified any of its leases as finance leases.

THE GLASGOW SCHOOL OF ART

58

Notes

Notes to the financial statements

1 Tuition fees and education contracts

Scotland home domicile fees
EU domicile fees
RUK domicile fees
Non-EU domicile fees
Education contracts
Non-credit bearing course fees		 Year ended 31 July 2025
Consolidated
School
£000
£000
3,373
3,373
-
-
4,000
4,000
21,101
21,101
664
664
437
437
29,575
29,575		 Year ended 31 July 2024
Consolidated
School
£000
£000
2,391
2,391
893
893
3,418
3,418
16,167
16,167
361
361
409
409
23,639
23,639

2 Funding body grants

General fund - Teaching
General fund - Research and Knowledge Exchange
Small specialist institution grant
Other SFC grants
Deferred capital grants released in year: Buildings
Equipment		 Year ended 31 July 2025
Consolidated
School
£000
£000
8,061
8,061
1,554
1,554
4,391
4,391
715
715
1,059
1,059
-
-
15,780
15,780		 Year ended 31 July 2024
Consolidated
School
£000
£000
9,070
9,070
1,601
1,601
3,496
3,496
672
672
1,059
1,059
100
100
15,998
15,998

3 Research grants and contracts

Research councils
Research charities
Government (UK and overseas)
Industry and commerce
Other		 Year ended 31 July 2025
Consolidated
School
£000
£000
343
343
14
14
942
942
42
42
-
-
1,341
1,341		 Year ended 31 July 2024
Consolidated
School
£000
£000
440
440
22
22
934
934
-
-
14
14
1,410
1,410

4 Other income

Residences
Release from deferred capital grants (Non-SFC)
Other income generating activities
Other income
Insurance monies (including accrued income)
Development Trust income		 Year ended 31 July 2025
Consolidated
School
£000
£000
3,291
3,291
32
32
206
206
1,254
1,254
4,783
4,783
8,086
8,086
-
-		 Year ended 31 July 2024
Consolidated
School
£000
£000
3,118
3,118
32
32
233
233
1,379
1,379
4,762
4,762
15
15
4
-

THE GLASGOW SCHOOL OF ART

59

Notes

5 Investment income

Investment income on endowments
Other investment income
Net return on pension scheme (note 28)		 Year ended 31 July 2025
Consolidated
School
£000
£000
407
407
474
474
-
-
881
881		 Year ended 31 July 2024
Consolidated
School
£000
£000
385
385
680
680
887
887
1,952
1,952

6 Segmental reporting

The group activities are carried out in Glasgow and Singapore.
Group Turnover for these two markets is split as:
Glasgow
Singapore		 Year ended 31 July 2025
Consolidated
£000
60,447
-
60,447		 Year ended 31 July 2024
Consolidated
£000
47,780
-
47,780

7 Staff costs

Salaries
Social security costs
Pensions
Pension FRS 102 service charge (note 28)
Severance and redundancy costs
Total
Staff costs per activity
Academic
Academic support
Research
Other support
Admin and central services
Premises
Residences
Pension FRS 102 service charge (note 28)
Severance and redundancy costs
The average number of staff employed by the School
expressed as full-time equivalents was:
Academic
Academic support
Research
Other support
Admin and central services
Premises
Residences		 Year ended 31 July 2025
Consolidated
School
£000
£000
24,350
24,350
2,623
2,623
3,321
3,321
1,104
1,104
74
74
31,472
31,472
Year ended 31 July 2025
Consolidated
School
£000
£000
12,876
12,876
4,811
4,811
2,497
2,497
3,032
3,032
4,641
4,641
2,130
2,130
308
308
1,104
1,104
73
73
31,472
31,472
Year ended 31 July 2025
Consolidated
School
Nos
Nos
128
128
93
93
20
20
46
46
52
52
61
61
5
5
405
405		 Year ended 31 July 2024
Consolidated
School
£000
£000
22,949
22,949
2,279
2,279
4,254
4,254
(165)
(165)
21
21
29,338
29,338
Year ended 31 July 2024
Consolidated
School
£000
£000
13,429
13,429
5,037
5,037
1,126
1,126
3,069
3,069
4,519
4,519
1,996
1,996
306
306
(165)
(165)
21
21
29,338
29,338
Year ended 31 July 2024
Consolidated
School
Nos
Nos
131
131
94
94
17
17
48
48
52
52
60
60
5
5
407
407

THE GLASGOW SCHOOL OF ART

60

Notes

Emoluments of Director
Emoluments of Director
Salary
Pension contributions		 Year ended 31 July 2025
Consolidated & School
£000		 Year ended 31 July 2024
Consolidated & School
£000
224
58
282		 206
49
255

The ratio of the remuneration of the Director to the median salary of a permanent staff member is 6.85:1 (2023: 5.42:1)

Compensation for loss of office payable to senior post holders
Payments in excess of £100k during the year		 Year ended 31 July 2025
Consolidated & School
Number
£000
-
-		 Year ended 31 July 2024
Consolidated & School
Number
£000
-
-

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the institution. Staff costs include compensation paid to key management personnel. The GSA defines its key management personnel as being members of its Senior Leadership Group and staff governors. The key management personnel emoluments are made up as follows:

Salaries
Employer’s National Insurance
Pension contributions
Total emoluments
The number of directors receiving benefits under defined benefit schemes:		 Year ended 31 July 2025
Consolidated & School
£000
1,730
225
319
2,274
Number
5		 Year ended 31 July 2024
Consolidated & School
£000
1,715
213
377
2,305
Number
6

The emoluments of the key management personnel, excluding pension contributions, in the following ranges were:

£100,001 to £110,000
£110,001 to £120,000
£120,001 to £130,000
£130,001 to £140,000
£190,001 to £200,000
£200,001 to £220,000
£220,001 to £230,000		 Year ended 31 July 2025
Consolidated & School
Number
-
2
-
3
-
-
1
6		 Year ended 31 July 2024
Consolidated & School
Number
1
1
1
1
-
1
5

THE GLASGOW SCHOOL OF ART

61

Notes

Governors’ emoluments

Only the Chair of the Board of Governors and those GSA staff who serve as governors receive payment for their services. Those emoluments are made up as follows:

Emoluments of Chair
Salaries
Employer’s National Insurance
Pension contributions
Emoluments of Staff Governors
Salaries
Employer’s National Insurance
Pension contributions
Total emoluments of Chair and Staff Governors
Salaries
Employers National Insurance
Pension contributions
Total emoluments		 Year ended 31 July 2025
Consolidated & School
£000
20
4
-
24
438
56
95
589
457
60
95
612		 Year ended 31 July 2024
Consolidated & School
£000
20
2
-
22
416
51
95
562
436
53
95
584

8 Other operating expenses

Academic and related expenditure
Administration and central services
Premises
Residences, catering and conferences
Development Trust expenditure
Research grants and contracts
Other expenses		 Year ended 31 July 2025
Consolidated
School
£000
£000
3,051
3,051
4,172
4,172
5,834
5,834
2,673
2,673
-
-
659
659
1,775
1,775
18,164
18,164		 Year ended 31 July 2024
Consolidated
School
£000
£000
3,129
3,129
3,782
3,782
4,217
4,217
2,954
2,954
4
-
418
418
1,553
1,553
16,057
16,053

9 Interest and other finance costs

Mortgage and loan interest
Net charge on pension scheme (note 28)		 Year ended 31 July 2025
Consolidated
School
£000
£000
20
20
27
27
47
47		 Year ended 31 July 2024
Consolidated
School
£000
£000
22
22
-
-
22
22

THE GLASGOW SCHOOL OF ART

62

Notes

10 (Deficit)/surplus

The deficit is stated after charging for:
External auditor’s remuneration: audit of the financial statements
External auditor’s remuneration: subsidiaries
External auditor’s remuneration: taxation compliance
External auditor’s remuneration: other audit work
Internal auditor’s remuneration in respect of audit services
Depreciation - owned assets
Operating leases - land and buildings		 Year ended 31 July 2025
Consolidated
School
£000
£000
5
54
4
7
7
6
6
39
39
2,918
2,918
1,751
1,751		 Year ended 31 July 2024
Consolidated
School
£000
£000
53
53
4
-
7
7
6
6
35
35
2,701
2,701
2,271
2,271

11 Taxation

Recognised in the statement of comprehensive income
Current tax
School
Tax re GSofA Singapore Pte Ltd
Total tax expense		 Year ended 31 July 2025
Consolidated
School
£000
£000
-
-
-
-
-
-		 Year ended 31 July 2024
Consolidated
School
£000
£000
-
-
-
-
-
-

No corporation tax was due on the activities of the School (2023: nil).

12 Fixed assets

Group and School
Cost/valuation
At 1 August 2024
Additions
Transfers to/(from) assets in the course of construction
Disposals
At 31 July 2025
Consisting of valuation as at:
1 July 1995
Cost
Depreciation
At 1 August 2024
Charge for the year
Disposals
At 31 July 2025
Net book value
At 31 July 2025
At 31 July 2024		 Freehold
Land and
Buildings
Equipment
and Fixtures
& Fittings
Assets in the
Course of
Construction
Total
£000
£000
£000
£000
110,137
13,379
14,879
138,395
2,268
1,203
3,211
6,682
-
-
-
-
(106)
(657)
-
(763)
112,299
13,925
18,090
144,314
15,890
-
-
15,890
96,409
13,925
18,090
128,424
112,299
13,925
18,090
144,314
26,371
10,283
-
36,654
2,070
848
-
2,918
(106)
(657)
-
(763)
28,335
10,474
-
38,809
83,964
3,451
18,090
105,505
83,766
3,096
14,879
101,741

THE GLASGOW SCHOOL OF ART

63

Notes

In May 2014 the School's Mackintosh Building was badly damaged by a major fire. A valuation of the building obtained after the fire valued the building considerably in excess of the depreciated figure used in the accounts. Accordingly, it was deemed that, in this circumstance, it was satisfactory not to impair the Mackintosh Building. In June 2018 the Mackintosh Building suffered a second, more extensive, fire. Given the extent of the damage, the value of the building was fully impaired, leaving only the land value within total fixed assets. The costs incurred in 2018/19, 2019/20, 2020/21 and 2021/22 in respect of stabilising the remaining structure and site clearance costs have been expensed.

The School's policy is that assets are retained at either their 1995 valuation or their historic cost for additions since that date. Land and Buildings were valued in 1995 by a firm of independent chartered surveyors on a depreciated replacement cost basis. All additions since that date have been included at historic cost and their value is deemed to be at least equal to the cost incurred.

Buildings with a net book value of £907,434 (2023: £1, 034,627) have been funded from Treasury sources. Should these particular buildings be sold, the School would have to surrender the proceeds to the Treasury or use them in accordance with the Financial Memorandum with the Scottish Funding Council.

Valuation of Land & Buildings (Including Inherited Land & Buildings)
Land and buildings have been included at valuation with the following amounts:
Increase from valuation of inherited buildings
Increase from valuation of purchased buildings
Aggregate depreciation on revalued amount
Net book value		 As at
31 July 2025
As at
31 July 2024
£000
£000
3,346
3,346
877
877
(2,850)
(2,756)
1,373
1,467

The inherited land and buildings concerned were all inherited prior to the 1995 valuation at nil cost. The net book value is £1,116,971 (2023/24: £1,191,225).

The revalued buildings were purchased prior to the revaluation in 1995.

13 Heritage assets

The heritage assets include the School's institutional archives dating back to 1845, along with archives from artists, societies and alumni associated with the School; and the museum collection includes the Charles Rennie Mackintosh Collection – a Recognised Collection of National Significance, and significant collections of artworks, textiles and silverware. It also includes the library's rare and valuable books collection. The balance sheet valuation of the archives is based on their insurance value, and that of the collection assets is based on an assessment of their commercial value. Additions to the collection are valued at the time of acquisition, and individual collections are reviewed periodically to ensure the accuracy of the valuation. Further information about the School's collections is publicly available on its website.

The heritage assets held by The Glasgow School of Art Development Trust were donated, with the intention being that they will be sold to realise their value.

School
Value of heritage assets acquired by donation, 1 August
Adjustments to valuation or cost
Balances as at 31 July
Glasgow School of Art Development Trust
Value of heritage assets acquired by donation, 1 August
Adjustments to valuation or cost
Balances as at 31 July
Group Total		 2025
2024
2023
2022
2021
£000
£000
£000
£000
£000

13,745
13,780
13,393
13,411
13,205
86
(35)
387
(18)
206
13,831
13,745
13,780
13,393
13,411




143
143
143
96
66
-
-
-
47
30
143
143
143
143
96
13,974
13,888
13,923
13,536
13,507

14 Endowments

14 Endowments
Group and School
At 1 August
Additions
Disposals
New endowments
Increase/(decrease) in cash balances held at fund managers
Appreciation of endowment asset investments in year
At 31 July		 2025
2024
£000
£000
6,098
5,535
2,217
869
(2,940)
(584)
-
-
789
(221)
15
499
6,179
6,098

THE GLASGOW SCHOOL OF ART

64

Notes

15 Non-current investments

The School's investment, at the balance sheet date, in the share capital of subsidiary companies comprises the following:

Class of Percentage
Company Principal activity shares owned
The principal activity of The Glasgow School of Art Development
The Glasgow School of Art Development Trust Trust, an unincorporated body, is to raise funds to support the n/a n/a
strategic priorities of The Glasgow School of Art.

The School’s investment in GS of A Singapore pte Ltd was liquidated in January 2025, hence there are no longer holdings in this entity at 31/07/2025.

16 Stock

General consumables
17 Trade and other receivables		 Year ended 31 July 2025
Consolidated
School
£000
£000
196
196
196
196		 Year ended 31 July 2024
Consolidated
School
£000
£000
185
185
185
185
Amounts falling due within one year:
Trade debtors
Debts due from students
Amounts due from subsidiary companies
Prepayments and accrued income
Amounts falling due in more than one year:
Development funding debtor		 Year ended 31 July 2025
Consolidated
School
£000
£000
355
346
337
337
-
-
1,291
1,291
1,983
1,974
252
-		 Year ended 31 July 2024
Consolidated
School
£000
£000



595
584

347
347

-
795

1,670
1,670

2,612
3,396


252
-

18 Creditors: amounts falling due within one year

Trade creditors
Unsecured loan
Payments in advance
Deferred capital grants
Taxation and social security
Research contracts accrual
Accruals and deferred income		 Year ended 31 July 2025
Consolidated
School
£000
£000
493
493
628
628
8,154
8,154
1,074
1,074
-
-
960
960
3,597
3,593
14,906
14,902		 Year ended 31 July 2024
Consolidated
School
£000
£000
513
513
628
628
6,278
6,278
1,190
1,190
3
3
910
910
2,980
2,960
12,502
12,482

19 Creditors: amounts falling due in more than one year

Unsecured loan
Deferred capital grants
Analysis of secured and unsecured loans:
Due within one year or on demand (note 18)		 Year ended 31 July 2025
Consolidated
School
£000
£000
7,461
7,461
50,598
50,598
58,059
58,059
628
628		 Year ended 31 July 2024
Consolidated
School
£000
£000
8,088
8,088
51,572
51,572
59,660
59,660


628
628

THE GLASGOW SCHOOL OF ART

65

Notes

Due after more than one year
Due between one and two years
Due between two and five years
Due in five years or more
Total secured and unsecured loans
Unsecured loan		 628
628
1,500
1,500
5,332
5,332
7,460
7,460
8,088
8,088
8,088
8,088
8,088
8,088		 628
628
1,628
1,628
5,832
5,832
8,088
8,088
8,716
8,716
8,716
8,716
8,716
8,716

Details of loans

Salix loan: An unsecured loan, repayable by bi-annual instalments until April 2027. This loan is a public benefit concessionary loan and is repayable with no interest charged over the duration of the loan.

SFC Financial Transactions: An unsecured loan, repayable in quarterly instalments. This loan, from the Scottish Funding Council under the Universities Financial Transactions Programme to fund the further development of the Stow Building, is repayable over 20 years with a fixed interest rate of 0.25%.

Deferred Capital Grants

Included within creditors are the following items of income which have been deferred until specific performance related conditions have been met.

Group
As at 1 August 2024
Buildings
Equipment
Released to Income and Expenditure
Buildings
Equipment
As at 31 July 2025
Buildings
Equipment
School
As at 1 August 2024
Buildings
Equipment
Released to Income and Expenditure
Buildings
Equipment
Received in year
Buildings
Equipment
Buildings
Equipment
Expected release of Deferred Capital Grants:
Expected within one year or on demand
Expected between one and two years
Expected between two and five years
Expected in five years or more		 Funding
Council
£000
42,643
-
42,643

(1,058)
-
(1,058)
41,585
-
41,585
42,643
-
42,643
(1,058)
-
(1,058)
-
-
-
41,585
-
41,585
Year ended 31 July 2025
Consolidated
School
£000
£000
1,074
1,074
1,074
1,074
3,220
3,220
46,304
46,304
51,672
51,672		 Funding
Council
£000		 Other grants
&
benefactions
Total
£000
£000
42,643
-		 10,119
52,762
-
-
42,643 10,119
52,762

(1,058)
-		 (32)
(1,090)
-
-
(1,058) (32)
(1,090)
41,585 10,087
51,672
- -
-
41,585 10,087
51,672
42,643
-		 10,119
52,762
-
-
42,643 10,119
52,762
(1,058)
-		 (32)
(1,090)
-
-
(1,058) (32)
(1,090)
-
-		 -
-
-
-
- -
-
41,585 10,087
51,672
- -
-
41,585 10,087
51,672
Year ended 31 July 2024
Consolidated
School
£000
£000
1,090
1,090
1,075
1,075
3,220
3,220
47,377
47,377
52,762
52,762

THE GLASGOW SCHOOL OF ART

66

Notes

20 Pension provisions and assets

Group and School
At 1 August 2024
Income and expenditure movement
Actuarial gain
Asset ceiling restriction
Provision/(asset) at 31 July 2025		 Pension on
termination1
Defined
benefit
obligation2
(note 28)
Total Pension
Provisions
£000
£000
£000
503
503
(66)
(66)
(1,131)
(1,131)
1,131
1,131
437
0
437

2 The actuarial review of GSA’s participation in the Strathclyde Pension Fund at 31 July 2022, for accounting purposes, signalled a change from a net liability to a net asset, a situation that prevailed into the following year. In those prior years, the actuary calculated an asset ceiling in excess of the pension surplus. The consequent lack of any restriction in the surplus precipitated recognition of a Pension asset in those years. Evolution of the approach among Local Government Pension Scheme practitioners over the past year has led to the actuary calculating an asset ceiling which reduces GSA’s pension surplus to £nil at this year-end.

21 Endowment reserves

Group and School
Balances at 1 August
Capital
Accumulated income
Investment income
Expenditure
Increase/(decrease) in market value of investments
Total endowment comprehensive income for the year
At 31 July
Represented by:
Capital
Accumulated income
Analysis by type of purpose:
Prize funds
General
Analysis by asset:
Current and non-current asset investments
Cash & cash equivalents		 Restricted
permanent
endowments
Expendable
endowments
£000
£000		 2025
TOTAL
2024
TOTAL
£000
£000
5,664
371
64
-		 6,035
5,496

64
39
5,728
371
6,099
5,535
439
-
(374)
-
15
-
439
419

(374)
(354)

15
498
80
-		 80
563
6,179
6,098
5,808
371
5,743
371
65
-
6,114
6,034

65
64
5,808
371		 6,179
6,098
5,808
-
-
371
5,808
5,727

371
371
5,808
371		 6,179
6,098
4,527
5,236
1,652
862
6,179
6,098

Restricted permanent endowments are where the donor has specified the fund is to be permanently invested to generate an income stream to be applied to a particular objective. Expendable endowments are where the School is free to convert the capital to income and apply it to an appropriate objective as it sees fit.

THE GLASGOW SCHOOL OF ART

67

Notes

22a Restricted reserves

Reserves with restrictions are as follows:
Campus redevelopment reserve
Balances at 1 August
Income
Expenditure
Total restricted comprehensive income for the year
Transfer from GSA Development Trust to School
At 31 July
Analysis of other restricted funds/donations by type of purpose
Campus redevelopment (including Mackintosh restoration)		 Year ended 31 July 2025
Consolidated
School
£000
£000
8,367
8,044
-
-
-
-
-
-
-
-
8,367
8,044
8,367
8,044		 Year ended 31 July 2024
Consolidated
School
£000
£000
8,367
7,910
4
-
(4)
-
-
-
-
134
8,367
8,044
8,367
8,044

22b Income and expenditure reserve

This reserve includes all current and prior year retained surpluses or deficits.

22c Revaluation reserve

The revaluation reserve consists of unrealised gains in respect of investments and the revaluation of properties.

23 Cash and cash equivalents

Balance at 1 August
Cash flow, in year
Balance at 31 July		 Year ended 31 July 2025
Consolidated
School
£000
£000
8,942
6,918
6,537
8,561
15,479
15,479		 Year ended 31 July 2024
Consolidated
School
£000
£000
18,563
16,404
(9,621)
(9,486)
8,942
6,918

THE GLASGOW SCHOOL OF ART

68

Notes

24 Consolidated reconciliation of net debt

Net debt 1 August
Decrease in cash and cash equivalents
Repayment of borrowings
Net debt 31 July
Change in net debt
Analysis of net debt
Cash and Cash equivalents
Borrowings: amounts falling due within one year
Unsecured loans
Borrowings: amounts falling due after more than one year
Unsecured loans
Net debt/(positive net cash position)		 2025
£000
(226)
(6,537)
(629)
(7,391)
(7,166)
2025
2024
£000
£000
15,479
8,942
628
628
628
628
7,460
8,088
7,460
8,088
(7,391)
(226)

25 Lease obligations

Total rentals payable under operating leases:
Future minimum lease payments due:
Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years
Total lease payments due		 Year ended 31 July 2025
Consolidated
School
£000
£000
1,672
1,672
4,885
4,885
10,991
10,991
17,548
17,548		 Year ended 31 July 2024
Consolidated
School
£000
£000
2,213
2,213
5,176
5,176
12,212
12,212
19,601
19,601

All lease obligations at the current and prior year ends relate to land and buildings.

26 Subsidiary and Joint Venture undertaking

GSofA Singapore pte Ltd

The school has a wholly owned subsidiary incorporated in Singapore. The School owns 100% of the share capital being 1SGD. Its financial results have been consolidated into the accounts for the year to 31 July 2025.

The were no transactions between the GSA and GSofA Singapore (2024: nil). GS of A was dissolved on 3[rd] January 2025.

The Glasgow School of Art Development Trust

This was established, as an unincorporated body, in 2010 to support the major capital priorities of The Glasgow School of Art. Following the 2014 fire in the Mackintosh Building, the Trust delivered the Mackintosh Campus Appeal to support the School to recover from the consequences of the fire. It is an independent charitable trust governed by a deed of trust and is registered with OSCR.

Its financial results have been consolidated into the accounts for the year to 31 July 2025.

The audit fee £4,266 (2024: £3,465) is paid on behalf of The Glasgow School of Art Development Trust by the GSA.

THE GLASGOW SCHOOL OF ART

69

Notes

27 Related party transactions

Due to the nature of the School's operations and the composition of the Board of Governors (being drawn from local public and private sector organisations) it is inevitable that transactions will take place with organisations in which a governor may have an interest. All transactions involving organisations in which a governor may have an interest are conducted at arm’s length and in accordance with the School's financial regulations and normal procurement procedures.

The Board of Governors consider the relationship that the School has with GSA Students’ Association (GSASA) to have the characteristics of related parties under the Financial Reporting Standard (FRS) 102:

28 Pension schemes

The School's employees belong to two principal pension schemes: the Scottish Teachers' Pension Scheme (STPS), and a Local Government Pension Scheme administered by the Strathclyde Pension Fund (SPF), which are of the defined benefit type. The cash cost of the SPF scheme was £699,000 for the Group and School (2023/24: £1,895,000), and the cost of the STPS was £2,577,000 for the Group and School (2023/24: £2,309,000). Other pension costs totalled £45,000 for the Group and School (2023/24: £50,000).

a. Strathclyde Pension Fund (SPF)

The Strathclyde Pension Fund provides benefits on final pensionable salary for employees of local government and some other institutions. This scheme, a multi-employer defined benefits scheme, covers both past and present employees. An FRS102 valuation of the School's benefit obligations has been estimated by a qualified independent actuary and the assumptions are as at 31 July 2024. That valuation identified that the closing fair value of the scheme’s assets exceeded the closing defined benefit obligations, resulting in a defined benefit plan surplus. Such a surplus can be recognised to the extent that the School can recover the surplus through refunds from the plan or reductions in future contributions. However, applying the assumption that the employer has no unconditional right to a refund from the Fund, and that to receive any refund the employer would need to end its ongoing participation in the fund, the actuary has calculated an asset ceiling which reduces the GSA’s pension surplus to £nil.

The employer contribution rate for the period from 1 August 2023 to 31 March 2024 was 25.9% of pay. Following the publication of the triennial actuarial valuation, the employer contribution fell to 6.5% for the period 1 April 2024 to 31 July 2024. That reduction in the employer contribution is a temporary reduction to 6.5%, for a 24-month period, followed by a staged increase to 17.5% on 1 April 2026, before, subject to the next triennial actuarial valuation, returning to an estimated “normalised” level of 21.2% from 1 April 2026.

The employee contribution rate was variable during 2023/23 depending upon the individual level of remuneration. The range was from 5.5% to 10.4%. There were no outstanding pension contributions at the year end. Principal actuarial assumptions (expressed as weighted averages) at the end of the year were as follows:

Financial assumptions
Pension increase
Salary increase rate
Discount rate
Mortality assumptions
The average future life expectancies at age 65 used to determine benefit obligations are as follows:
Current pensioners
Future pensioners
Fair value of the plan assets and the return on those assets were as follows:
Equities
Bonds
Property
Cash
Analysis of the amount shown in the balance sheet
Fair value of plan assets
Present value of funded benefit obligations
Net pension asset before effect of the asset ceiling
Effect of the asset ceiling
–Net pension asset		 2025
2024
2.75%
2.75%
3.45%
3.45%
5.80%
5.00%
Male
Female
20.7
22.6
21.2
24.2
2025
2024
£000
£000
45,152
42,551
16,284
17,158
6,662
6,177
5,921
2,745
74,019
68,631
2025
2024
£000
£000
74,019
68,631
(45,600)
(49,359)
28,419
19,272
(28,419)
(19,272)
-
-

THE GLASGOW SCHOOL OF ART

70

Notes

Analysis of the amounts charged to Profit & Loss
Service costs
Employer contributions
Net Service Costs
Interest income on plan assets
Interest cost on defined benefit obligation
Interest on the effect of the asset ceiling
Net interest
Net gain on pension liability to SOCI
Return on assets excluding amounts included in net interest
Experience gains and losses arising on the scheme liabilities
Changes in financial and demographic assumptions
Changes in the effect of the asset ceiling
Actuarial gain recognised in Other Comprehensive Income		 2025
2024
£000
£000
1,803
1,675
(699)
(1,840)
1,104
(165)
(3,432)
(3,136)
2,496
2,249
963
-
27
(887)
1,131
(1,052)
1,845
2,559
453
(4,795)
7,017
3,107
(8,184)
(19,272)
1,131
(18,401)
Analysis of movements in present value of the scheme liabilities
Opening defined benefit obligation
Current service cost
Interest cost
Contribution by members
Actuarial gains
Experience gains and losses
Benefits paid
Closing defined benefit obligation
Analysis of movements in fair value of the scheme assets
Opening fair value of employer assets
Expected return on assets
Contributions by members
Contribution by employer
Actuarial (losses)/gains
Benefits paid
Closing fair value of employer assets		 2025
2024
£000
£000
49,359
44,048
1,803
1,675
2,496
2,249
686
613
(7,017)
(3,107)
(453)
5,363
(1,274)
(1,482)
45,600
49,359
2025
2024
£000
£000
68,631
61,493
3,432
3,136
686
613
699
1,840
1,845
3,031
(1,274)
(1,482)
74,019
68,631

The School expects to contribute approximately £1,043k to the Strathclyde Pension Fund in the next year.

Sensitivity analysis

The sensitivities regarding the principal assumptions used to measure the SPF scheme liabilities are set out below:

Change in assumptions at 31 July 2026
0.1% decrease in Real Discount Rate
1 year increase in member life expectancy
0.1% increase in the Salary Increase Rate
0.1% increase in the Pension Increase Rate		 Approximate % increase to
Defined Benefit Obligation
Approximate monetary
amount(£000)
2%
855
4%
1,824
0%
43
2%
836

THE GLASGOW SCHOOL OF ART

71

Notes

b. Scottish Teachers' Pension Scheme

The Glasgow School of Art participates in the Scottish Teachers’ Superannuation Scheme. The scheme is an unfunded statutory public service pension scheme with benefits underwritten by the UK Government. The scheme is financed by payments from employers and from those current employees who are members of the scheme and paying contributions at progressively higher marginal rates based on pensionable pay, as specified in the regulations.

The Glasgow School of Art has no liability for other employers’ obligations to the multi-employer scheme. As the scheme is unfunded, there can be no deficit or surplus to distribute on the wind-up of the scheme or withdrawal from the scheme.

The scheme is an unfunded multi-employer defined benefit scheme. It is accepted that the scheme can be treated for accounting purposes as a defined contribution scheme in circumstances where The Glasgow School of Art is unable to identify its share of the underlying assets and liabilities of the scheme.

The rate of employer contributions is set with reference to a funding valuation undertaken by the scheme actuary:

The Glasgow School of Art’s level of participation in the scheme was 0.3% based on its 2024/25 cost as a proportion of employer contributions.

29 Bursary and Other Student Support Funds

29 Bursary and Other Student Support Funds
Balance brought forward at 1 August
Funds returned
Funds available for distribution
Expenditure in year
Balance carried forward at 31 July		 International
Student
Fund
£000
HE
discretionary
fund
Childcare
fund
2025
Total
2024
Total
£000
£000
£000
£000
-
-
-
-
-
-
-
-
96
12
108
96
(96)
(12)
(108)
(96)
- -
-
-
-

30 Capital commitments

At 31 July 2025 there were no capital commitments (2024: £125,000).

31 Contingent asset

At the time of the fire in June 2018, the Mackintosh Building was covered by an owner-controlled insurance program, designed to coordinate general liability coverage for all eligible parties working on the construction project.

That insurance comprises two elements, covering the contract works and the pre-existing structure. Interim payments made by the insurers in relation to the contract works have been recognised as income in the periods in which they were received. The value and method of receipt of sums relating to the existing structure have still to be agreed, so represent a contingent asset.

32 Events after the reporting period

There are no events to report after the reporting period.

33 US Department of Education - Financial Responsibility Supplemental Schedule

In satisfaction of its obligations to facilitate students’ access to US federal financial aid, the GSA is required, by the US Department of Education, to present, the following Supplemental Schedule in a prescribed format.

The amounts presented within the schedules have been:

The schedules set out how each amount disclosed has been extracted from the financial statements. As set out above, the accounting policies used in determining the amounts disclosed are not intended to and do not comply with the requirements of accounting principles generally accepted in the United States of America.

The aim of the schedules is to support the GSA in meeting the requirements of the US Department of Education’s Federal Loan scheme, and not the requirements of the SORP; the schedule does not form part of the SORP; and the schedules have not been considered nor reviewed by the Financial Reporting Council.

THE GLASGOW SCHOOL OF ART

72

Primary Reserve Ratio:

Primary Reserve Ratio:
£GBP
£GBP
Yr ending 31 July 2025		 £GBP
£GBP
Yr ending 31 July 2024
Expendable Net Assets:
24 Statement of Financial Position - Net assets
without donor restrictions		 Net assets without donor
restrictions		 Note 22b and 22c Page 45 £ 55,620,000 £ 45,406,000
30 Statement of Financial position - Net assets with
donor restrictions		 Net assets with donor restrictions Note 21 and 22a Page 45 £ 14,546,000 £ 14,465,000
4 Statement of Financial Position - Related party
receivable and Relatedpartynote disclosure*		 Secured and Unsecured related
partyreceivable
4 Statement of Financial Position - Related party
receivable and Relatedpartynote disclosure*		 Unsecured related party receivable £
-		 £
-
8 Statement of Financial Position - Property, Plant
and Equipment,Net*
 Property, Plant and Equipment, net
(includes construction inprogress)		 Note 12 Page 56 £ 105,505,000 £ 101,741,000
FS Note line
8A		 Note of the Financial Statements – Statement of
Financial Position - Property, Plant and Equipment,
net –pre-implementation
 Property, Plant and Equipment, net
– pre-implementation		 Note 12 Page 56 £ 60,344,000 £ 62,950,000
FS Note line
8B		 Note of the Financial Statements - Statement of
Financial Position- Property, Plant and Equipment,
net post-implementation with outstanding debt
for original purchase*		 Property, Plant and Equipment,
net – post-implementation less any
construction in progress with
outstanding debt for original
purchase with debt*		 £
-		 £
-
FS Note line
8D		 Note of the Financial Statements - Statement of
Financial Position- Property, Plant and Equipment,
net post-implementation without outstanding
debt for original purchase*		 Property, Plant and Equipment,
net – post-implementation less any
construction in progress with
outstanding debt for original
purchase without debt*		 Note 12 Page 56 £ 26,594,000 £ 23,435,000
FS Note line
8C		 Note of the Financial Statements – Statement of
Financial Position- Property, Plant and Equipment,
Construction inprogress		 Construction in progress Note 12 Page 56 £ 18,567,000 £ 15,356,000
9 Statement of Financial Position – Lease right-of-
use asset*		 Lease right-of-use asset* £
-		 £
-
Excluded 9
Note Leases		 Note of Financial Statements - Statement of
Financial Position – Lease right-of-use asset pre-
implementation		 Lease right-of-use asset pre-
implementation		 £
-		 £
-
M9 Note
Leases		 Note of Financial Statements - Statement of
Financial Position – Lease right-of-use asset post-
implementation		 Lease right-of-use asset post-
implementation		 £
-		 £
-
10 Statement of Financial Position – Goodwill* Intangible Assets £
-		 £
-
17 Statement of Financial Position – Post-
employment andpension liability*		 Post-employment and defined
pensionplan liabilities		 Notes 18,19 & 20 Pages 58
- 60		 £ 437,000 £ 503,000
14,20,22 Statement of Financial Position – Notes payable
and Line of Credit (both current and long-term)
and Line of Credit for Construction inprocess*		 Long term debt- for long-term
purposes		 Long term debt- for long-term
purposes		 Note 19 Page 59 £ 8,089,000 £ 8,089,000 £ 8,716,000 £ 8,716,000
M24,20,22
Note Debt A		 Statement of Financial Position – Notes payable
and Line of Credit (both current and long-term)
and Line of Credit for Construction inprocess*		 Long term debt- for long-term
purposes pre-implementation		 £ -
£ -
M24,20,22
Note Debt B		 Statement of Financial Position – Notes payable
and Line of Credit (both current and long-term) for
purchase of Property,Plant and Equipment		 Long-term debt for long-term
purposes post implementation		 Note 19 Page 59 £ 8,089,000 £ 8,716,000
M24,20,22
Note Debt C		 Statement of Financial Position – Notes payable
and Line of Credit (both current and long-term)
and Line of Credit for Construction inprogress		 Line of Credit for Construction in
process		 £ - £ -
21 Statement of Financial Position- Lease right –of-
use assets liability (both current and long term)*		 Lease right-of-use liability £ - £ -
Excluded Line
21 Note
Leases		 Statement of Financial Position- Lease right –of-
use assets liability pre-implementation		 Pre-implementation right-of-use
leases		 £ - £ -
Line 21 Note
Leases

 Statement of Financial Position- Lease right –of-use
assets liability post-implementation		 Post-implementation right-of-use
leases		 £ - £ -
25
 Statement Of Financial Position - Annuities Annuities with donor restrictions £ -
26

 Statement Of Financial Position - Term
Endowments		 Term endowments with donor
restrictions		 £ -
27
 Statement Of Financial Position - Life Income Funds Life income funds with donor
restrictions		 £ -
29
 Statement Of Financial Position - Perpetual Funds Net assets with donor restrictions:
restricted inperpetuity		 £ -
Total Expenses and Losses Note 7,8,9,12&13 Page 43 £ 51,751,000 £ 48,083,000
43 Statement of Activities - Total Operating Expenses
(Total from Statement of Activities prior to
adjustments)		 Total expenses without donor
restrictions - taken directly form
the Statement of Activities		 Note 7,8,9, & 12 Page 43 £ 51,665,000 £ 48,118,000
(35),
45,46,47,48,49		 Statement
of
Activities
–
Non
Operating
(Investment return appropriated for spending),
Investments, net of annual spending gain (loss),
Other components of net periodic pension costs,
Pension related changes other than net periodic
pension, Change in value of split interest
agreements and other gains (loss) (Total from
Statement of Activitiesprior to adjustments)		 Non Operating and Net Investment
(loss)		 Note 13 Page 43 £ 86,000 -£ 35,000
(35), 45 Statement
of
Activities
–
Non
Operating
(Investment return appropriated for spending),
Investments,net of annual spending gain(loss)		 Net Investment losses £ -
£ -
47 Statement of Activities - Pension related charges
other than periodic pension		 Pension related charges other
than periodic pension		 £ -
£ -
Lines Equity Ratio
Modified Net Assets
24 Statement of Financial Position - Net assets
without donor restriction		 Net assets without donor
restrictions		 Note22b and 22c Page 45 £ 55,620,000 £ 45,406,000
30 Statement of Financial position - Net assets with
donor restrictions		 Net assets with donor restrictions Note21 and 22a Page 45 £ 14,546,000 £ 14,465,000
10 Statement of Financial Position – Goodwill* Intangible Assets £ - £ -
4 Statement of Financial Position - Related party
receivable and Relatedpartynote disclosure*		 Secured and Unsecured related
partyreceivable		 £ - £ -
4 Statement of Financial Position - Related party
receivable and Relatedpartynote disclosure*		 Unsecured related party receivable £ - £ -
Modified Assets:
12 Statement of Financial Position - Total assets Total assets Note
12,13,14,16,17&23		 Page 45 £ 143,568,000 £ 133,718,000
Excluded 9
Note leases		 Note of Financial Statements - Statement of
Financial Position – Lease right-of-use asset pre-
implementation		 Lease right-of-use asset pre-
implementation		 £ - £ -
Excluded Line
21 Note
Leases		 Statement of Financial Position - Lease right-of-use
assets liability pre-implementation		 Pre-implementation right-of-use
leases		 £ -
10 Statement of Financial Position – Goodwill* Intangible Assets £ -
4 Statement of Financial Position - Related party
receivable and Relatedpartynote disclosure*		 Secured and Unsecured related
partyreceivable		 £ -
4 Statement of Financial Position - Related party
receivable and Relatedpartynote disclosure*		 Unsecured related party receivable £ -
Lines Net Income Ratio:
51 Statement of Activities - Change in Net assets
Without Donor Restrictions		 Change in Net Assets Without
Donor Restrictions		 Surplus/(deficit)
plus Note 13&28		 Page 45 £ 9,062,000 £ 18,774,000
38, (35), 50 Statement of Activities - (Net assets released form
restriction), Total Operating Revenue and Other
Additions and Sale of Fixed Assetsgains(losses)		 Total Revenue and Gains Note 6 Page 45 £ 59,510,000 £ 47,780,000