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2024-07-31-accounts

Financial Statements 2023/24

Reports and Financial Statements 2023/24

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Financial Statements 2023/24

Contents

Contents
Introduction from Chair of Court
and Interim Principal and Vice-Chancellor 4
The Universit's crisis 6
Our strategy 8
Financial Review 10
Corporate Governance 18
Independent Auditor’s Report to the Universit Court
of the Universit of Dundee		 32
Financial Statements 37
Consolidated and Institution Statement
of Comprehensive Income		 38
Consolidated and Institution Statement of Changes in Reserves 39
Consolidated and Institution Statement of Financial Position 40
Consolidated Statement of Cash Flows 42
Statement of Principal Accounting Policies 43
Notes to the Financial Statements 51

3

University of Dundee

Introduction from Chair of Court and Interim Principal and Vice-Chancellor

The publication of these financial statements is long overdue, a result of the institutional crisis within the University which publicly emerged late in 2024.

This has been the greatest crisis the University has ever seen. It has had a significant impact on our staff, students and all who have an interest in the University.

We recognise and regret the mistakes of leadership, financial management and governance, outlined in the Gillies Report commissioned by the Scottish Government, which led the University of Dundee to this point. One result of that has been wholesale changes in leadership, with an entirely new University Executive Group, a new Chair of Court and a significant number of new Court members. We have very substantially strengthened our leadership, our governance and our processes, and we are now, in 2026, engaged in the recruitment process for a new substantive Principal and Vice-Chancellor to lead the organisation.

We are grateful for the support of the Scottish Funding Council and the Scottish Government over the last eighteen months, which has been vital in helping us stabilise the institution and work towards a sustainable future. And we acknowledge and thank Professor Pamela Gillies who so thoroughly investigated the issues that led us to crisis point in November 2024.

Since the financial aspect of the crisis was first announced, we have reduced our expenditure, on staffing, operational and capital costs. We have implemented two Voluntary Severance schemes which have removed recurrent staffing costs. This action is supporting our move towards financial sustainability, to enable the University of Dundee not just to survive but to thrive. However, we acknowledge that significant further action is needed and the University’s entire cost base is being considered for reduction to bring us to a position of financial sustainability. Much of this further saving is to be derived from staff cost reductions, a process underway at the point of signing these Financial Statements. Going forward, the University’s operations will be transformed; we will be leaner and more efficient in our activities, but still committed to good work across our teaching and research. We will provide the best possible

experience for our students, managing our finances with prudence, while examining all opportunities to attract additional income and investment. We are committed to achieving an EBITDA in the range of 8-10% by 2027/28, which will provide us the opportunity to reinvest in our organisation and rebuild towards a stable and sustainable future state.

There remain significant financial challenges, across the Higher Education sector as a whole as well as those financial issues and issues of non-compliance and leadership failure which were specific to our University. Overcoming those macro and micro challenges, and becoming a University fit to last into the future will require substantial change to our model of operation, which we know will be demanding for all those involved. Following the approval by Court of the short term Strategy to Recovery and submission to the Scottish Funding Council, on 16 June 2026 the University announced it had entered into formal Collective Consultation for a minimum period of 45 days as we move forward with identifying further savings across its entire cost base.

Delivery of both this short term Strategy to Recovery and a subsequent new five-year Strategy will be demanding. We are here to meet that challenge, for the benefit of our students, our staff and the wider community of Dundee, to secure the future of this venerable institution as we approach our 60th anniversary in 2027.

Esther Roberton

Chair of Court

Professor Nigel Seaton

Interim Principal and Vice-Chancellor

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Financial Statements 2023/24

Esther Roberton Chair of Court

Professor Nigel Seaton Interim Principal and Vice-Chancellor

5

University of Dundee

The University's crisis

The University of Dundee's crisis, which arose as a result of failures in governance and leadership, straddles the financial year reported in these financial statements and subsequent years. The matters described here are of significance to understanding the University’s governance, financial sustainability and risk profile and are therefore relevant to the University’s assessment of going concern.

Updated forecasts and financial recovery plans materially impact on the University's going concern status described in the “Basis of Preparation” in the Statement of Accounting Policies. At the time of signing these Financial statements, action has been taken which has had a significant impact, however it should be noted that material further cost reduction measures are still required to address uncertainty around going concern.

The University of Dundee’s crisis became publicly apparent in late 2024. Failure of action by University Executive and Court during 2024, following a breakdown of leadership and governance in 2023 culminated in the revelation of the financial aspect of the crisis in November 2024. A shortfall in student recruitment against over ambitious budget assumptions for 2024/25 and a lack of progress in the delivery of material savings targets and cost mitigation measures included in the approved 2024/25 budget led to a significant revision of forecasts and a potential operating deficit of circa £30m for financial year 2024/25. Delivery of these targets was essential to protect low cash balances and maintain sufficient cash for University operations. However, institutional failure at Executive and Court level to manage these factors, in-year (2024/25) and across the previous year (2023/24), as highlighted and detailed in the Gillies report, exacerbated the crisis.

The revised forecasts were presented to the University Executive Group on 12 November 2024, and Court was informed the same day by the Principal and Vice-Chancellor, Prof Iain Gillespie, the University's going concern position would be reassessed and the going concern assessment revised accordingly, and therefore Court was not in a position to consider the draft 2023/24 Financial Statements.

On 13 November 2024, University staff and the Scottish Funding Council were notified of the deterioration in the University’s financial position, in terms of forecast operating position, cash position and liquidity, with significant deficits forecast for 2024/25 and beyond. In addition, the University breached covenants associated with its £40m Revolving Credit Facility, thereby removing access to this facility.

The University immediately put in place measures to reduce costs including:

From December 2024 to the date of approval of these Financial Statements, a number of events and actions have impacted on the ongoing financial position and the timeline for cost reduction actions. These events include a material adverse change to the financial position of the University, changes in key leadership and governance roles and enhancements to governance and financial oversight.

With University governance and financial management called into question, the Principal and Vice Chancellor, Professor Iain Gillespie resigned from his post on 5 December 2024. The Chair of Court, Amanda Millar resigned on 17 February 2025. The Deputy Vice Chancellor, Professor Shane O’Neill was appointed Interim Principal and Vice-Chancellor on 11 December 2024 and worked with members of the University Executive Group and Court to address the immediacy of the challenge.

The University Executive Group began work on further cost control and budget projections for the years ahead. In February 2025 the University requested additional financial support from the Scottish Funding Council while it developed a financial recovery plan; a grant of £10m was awarded by the Scottish Funding Council in May 2025.

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Financial Statements 2023/24

In May 2025 Professor O’Neill wrote to the Scottish Funding Council to request further financial support of £20m per annum for the next two financial years, 2025/26 and 2026/27. This request was based on updated financial forecasts prepared by the University with external support from professional advisers

Following an appearance in March 2025 at the Education, Children and Young People Committee of the Scottish Parliament, by Acting Chair of Court Tricia Bey, Interim Principal Prof Shane O’Neill, Interim Finance Director Helen Simpson and Vice Principal, Professor Blair Grubb, the Scottish Government commissioned Professor Pamela Gillies to undertake a review into the University’s financial position governance and leadership. The Scottish Funding Council published Professor Gillies’ report on 19 June 2025 (“the Gillies Report”). The report highlighted clear failings in financial monitoring, management and governance at the University, which had not been identified because both the Executive and Court were operating suboptimally.

Following publication of the Gillies Report, Professor Shane O’Neill stepped down as Interim Principal and Vice-Chancellor on 19 June 2025, along with Tricia Bey, Acting Chair of Court, and Carla Rossini, Convener of the Finance and Policy Committee, who were both due to step down from Court in the summer of 2025. Dr Ian Mair, Deputy Chair of Court was appointed Acting Chair of Court and Professor Nigel Seaton was appointed Interim Principal and Vice-Chancellor.

In August 2025, the University published a formal response to the Gillies Report, acknowledging the failures of governance, financial management and leadership which had led to the crisis. The response documented actions to be taken in the short, medium and long term, designed to ensure the University had a sustainable future built upon strong governance, financial competence, transparency and accountability. Since August 2025, the University has reported monthly to the Scottish Funding Council on its progress against the actions outlined in the Gillies Report response.

The University had already launched a Voluntary Severance Scheme to deliver significant financial savings and remove recurrent core costs on 6 June 2025. This scheme closed on 25 July 2025 and resulted in a reduction of 240 staff FTE, with staff exiting in the first quarter of financial year 2025/26.

The Scottish Government continued to play a key role in the University’s long-term viability and sustainability. On 24 June 2025 the Cabinet Secretary for Education, Jenny Gilruth, confirmed an additional £40m funding in principle for the Scottish Funding Council to support the University of Dundee’s recovery. This funding, directed under Section 25 of the Further and Higher Education (Scotland) Act 2005, was to be subject to appropriate conditions, due diligence, and at the time of writing the initial tranche has only just been released by the Scottish Government to the Scottish Funding Council and to the University of Dundee now the appropriate due diligence has been concluded. Further additional funding of £12m in a loan has been offered by the Scottish Funding Council to support the University

as it takes action to return to a position of financial health. This loan has now been accepted and received by the University.

Following the appointment of Professor Nigel Seaton as Interim Principal and Vice-Chancellor, a recovery plan was developed detailing key financial recovery actions to address the financial sustainability of the University. On 11 August 2025 this plan, the University Recovery Plan (“URP”) was shared with the Scottish Funding Council following approval by Court. This URP was not supported by the Scottish Funding Council, and dialogue with the SFC continued.

In November 2025 the University received draft Conditions of Grant from the Scottish Funding Council, subsequently confirmed as final in the formal Section 25 funding letter received in March 2026. These Conditions of Grant required a number of actions from the University, all of which have been completed by the deadlines stated in the draft Conditions of Funding where required up to the date of approval at the time of approval of these Financial Statements. Ongoing monitoring of compliance with the Conditions of Grant is in place until 6 months after the end of the Section 25 funding period (31 July 2027).

In January 2026 the University prepared revised financial forecasts covering the period to July 2030, which have been evaluated by external advisors appointed by the Scottish Government as part of the Section 25 Accountable Officer process. These forecasts form the basis of the Going Concern Assessment referred to in the Statement of Accounting Policies and form the financial basis of the Strategy To Recovery which has been developed in consultation with Court, staff, students and other key stakeholders. Following approval by the University Court on 9 June 2026, the Strategy to Recovery was submitted to the Scottish Funding Council. On 12 June 2026 the SFC Board confirmed in writing that it had considered the Strategy to Recovery and had determined that it was compliant with the Conditions of Grant.

A second Voluntary Severance scheme was launched in February 2026, closed in March 2026 and resulted in a further reduction of 111 staff FTE.

On 16 June 2026 the University announced it had entered into formal Collective Consultation for a minimum period of 45 days as it moves forward with identifying further savings across its entire cost base.

Following the process outlined in the Higher Education Governance (Scotland) Act 2016, Esther Roberton was elected as Chair of Court on 27 November 2025, setting a new course for a refreshed Court membership and a pathway to recovery.

The election of a new Chair of Court, aligned to the appointment of a new University Executive Group sets the course for a pathway to a sustainable and secure future for the University, unencumbered by any senior leadership who could be held accountable for the previous failure of governance, financial oversight and institutional management.

7

University of Dundee

Our strategy

Our institutional strategy was put under threat due to fundamental failures in governance and leadership that became apparent in November 2024 and threw the University into a financial crisis. The immediacy of the scale of the financial challenge put paid to the ongoing delivery of the 2022-27 Strategy and thus this report outlines the position in 2023-24, and the effect that the revelation of the crisis had on the University’s capacity to achieve its aims. As the University slowly recovers from the crisis, in order to address financial sustainability, the University Executive Group and Court are creating a short-term Strategy to Recovery covering the period 31 July 2029. This is aligned to improvements in governance and leadership, will be approved by Court, and will drive future actions.

However, as the University works towards recovery, the institution’s mission, which defines our core purpose, remains unchanged. Building on our history and the worldchanging heritage of our city, our mission continues to be to ‘transform lives through the creation, sharing and application of knowledge’.

Our vision for the University guides our thinking on our future state – where we aspire to be. A secure and successful future for the University of Dundee will be built on our renowned and demonstrable excellence and impact in teaching, research and knowledge exchange. Delivery of these core strengths will lie at the heart of our journey to sustainability, and through our actions, we will both rebuild our competence and engender the trust of our community.

We deliver impact through our students and graduates, our research and scholarship, and the contribution we make to health, the environment, society, and the economy both across the globe and here in Scotland.

The coming years will be challenging. Difficult decisions will be required, and we recognise that, but we remain passionate about our role in our city, the region and the country’s future.

By effectively and efficiently making use of our skills and resources, we will foster a sustainable organisation and an environment that encourages engagement, supports wellbeing, promotes innovation, and enhances the overall experience for students, staff, and the wider Dundee community across all our campuses and digital platforms.

Strategy 2022-27

The emergence of the crisis in November 2024 clarified that continuing to adhere to the 2022-27 Strategy was both financially and logistically unsustainable; over the intervening period, institutional disruption has therefore had significant impact on achieving the strategic goals identified in the 2022-27 strategy. In 2023/24, many of the KPIs and targets for the year were not met, and the University was unable to address these targets in 2024/25. As part of the Strategy to Recovery and in preparation for a new institutional Strategy, 2027/31, these targets and KPIs are under review.

In 2023/24, we had aimed to deliver on our aspiration for tripleintensity across teaching, research and engagement to achieve our vision and goals.

We made progress towards our overarching aims by focusing on our enabling strategies: research with impact, education and student experience, engagement and enterprise, people and talent and digital.

We created an Education Academy to support excellence in learning and teaching. Our reinvigorated Student Partnership agreement facilitated measurable and tangible improvements in student support and experience.

We focused on disciplines where we excelled, or could reasonably hope to excel, in research, education and engagement, ensuring sustainability, outstanding research and impact and strong student attraction.

We made significant progress in achieving student positivity, moving up a quartile in the National Student Survey. However our Research Grants and Contracts Income decreased by £7.7m, setting us back on a goal to achieve £83m by 2027. We maintained our position within the top quintile of the Times Higher Education Impact Rankings, achieving the KPI. The University dropped 4 places in the estimated current turnover of all active spin-outs and start-ups, ten places away from the target of top 5 by 2027.

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Financial Statements 2023/24

Financial constraints saw the follow-up staff survey in 2024/25 cancelled and we are unable to address the Digital Enablement KPI as the supplier contract has been cancelled because of budget constraints.

The University crisis had major impact on capacity to deliver the Net Zero Strategy, with reductions in both human and financial resource detracting attention from this critical area.

Finally, the University’s EBITDA target of 7% in 2027 was significantly affected by the financial aspects of the institutional crisis.

As the University slowly recovers from the crisis, in order to address financial sustainability the University Executive Group and Court are creating a short-term Strategy to Recovery. This is aligned to the sustainability of the institution, will be approved by Court, will drive future actions and following submission to the Scottish Funding Council in June 2026, will be the basis on which we report progress on our recovery to the Scottish Funding Council. Following approval by the University Court on 9 June 2026, the Strategy to Recovery was submitted to the Scottish Funding Council. On 12 June 2026 the SFC Board confirmed in writing that it had considered the Strategy to Recovery and had determined that it was compliant with the Conditions of Grant.

In 2023/24, we worked towards the following Key Performance Indicators (KPIs) and targets to assess the progress towards the outcomes of the 2022-27 strategy in place at the time. KPIs and targets detailed in the table below were applicable as at 31 July 2024 and should be considered in the context of the crisis that emerged thereafter and the impact of that crisis on these measures. These targets were not met in 2024/25 and are currently under review as the University’s future strategy is developed.

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Strategic focus KPI name Base year [1] 23/24 results Target (by year 5)
(see notes [2] )
Education & Student Student positivity with teaching, 89th (Q2) 57th (Q3) Top Quartile (Q4)
Experience [3] assessment and feedback (NSS) in the UK
Research with Impact Research Grant Income £71.8M £71.2M £83M per annum
Engagement Times Higher Education Impact 201-300 (Q5) 201-300 (Q5) Ranked in the World’s
Rankings Top Quintile (Q5)
Enterprise Estimated current turnover of all 11th 15th Top 5 in the UK
active spin-outs and start-ups
People & Talent [4] Staff Engagement Index 5.9 Second survey Staff Engagement
due 2024/25 Index of 7.0
Digital Enablement 5 Digital Business Maturity 2.46 Not available Score 3.50 out of 5.00
Assessment (Gartner)
Climate Action & Net Zero Greenhouse Gas net Emissions 45% reduction 38% reduction Target of 75% reduction
compared to baseline
by 2030
Financial Sustainability [6] Cash generation (EBITDA) 4% (0.9)% EBITDA as a percentage
of income of at least 7%
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Notes:

  1. The baseline year is 2021/22, except for People & Talent which is 2022/23. The Strategy was launched at the end of the 2021/22 academic year.

  2. The latest figure is for 2023/24 except for Enterprise and Climate Action & Net Zero which are for 2022/23.

  3. The Education & Student Experience KPI and target have been updated in response to methodological changes to the National Student Survey.

  4. The People & Talent KPI baseline was established in 2022/23 following the introduction of the biennial HIVE Staff Engagement

  5. Survey and a target was subsequently established. The first indication of progress will be available in 2024/25.

  6. The Digital Business Maturity Assessment KPI was based on Garter tool which the University no longer has access to therefore this measure cannot be reported.

  7. The Financial Sustainability KPI target of 7% was not met in 2024/25 and is under review as the University embarks on the delivery of its Strategy to Recovery.

9

University of Dundee

Financial Review

Context

This Financial Review primarily describes the financial position for financial year 2023/24 and should be considered in the context of the crisis that emerged thereafter and the impact of that crisis on the University’s finances. This impact increased in severity in the 2024/25 financial year as a result of issues in leadership, governance and financial oversight and monitoring.

The impact on the University’s finances beyond 2023/24 is considered in more detail in the Future outlook section of this review.

Financial performance

In 2023/24 the Group reported an FRS 102 Financial Statements surplus before other gains of £71.7m, including the Universities Superannuation Scheme pensions accounting adjustment (2023: surplus £4.8m). The reported FRS 102 surplus for the year is £73.3m (2023: £5.1m surplus).

Total comprehensive income for the year is £81.2m (2023: £11.7m) and includes a £2.5m gain on investments and a £7.8m reduction in the University of Dundee Superannuation Scheme (UODS) liability.

These results include a number of non-recurrent items which do not reflect the underlying operating position for the University. The results for the year reflect the accounting adjustments in place for the 2023 actuarial valuation of the Universities Superannuation Scheme (USS). The impact on expenditure in the year was a £80.3m expenditure reduction as a result of the elimination of the USS provision in full (2023: £9.3m credit). The 2024 result also includes £5.1m of capital grants funding assets completed as part of the Tay Cities Deal.

Adjusting for non-recurrent items, the underlying operating position for 2023/24 is a deficit of £12.8m compared with a £2.4m surplus in 2022/23 as shown below:

2023/24 2022/23
£000 £000
FRS 102 surplus before other gains and losses 71,655 4,788
Adjustments
USS pension adjustment (net impact on staff costs and interest) (80,316) (9,265)
Exceptional impairment of fixed assets due to RAAC and 891 5,885
cessation of capital works
Restructuring costs - 955
Tay Cities income - capital grants recognised (5,050) -
Underlying (deficit)/surplus (12,820) 2,363

More information on the accounting implications of the USS and UODS pension schemes is provided in the Pensions section of this review and in Note 32 to the Financial Statements.

The University has identified EBITDA as its primary measure of financial performance as described in the Strategy KPI table on page 9. The EBITDA calculation follows the EBITDA for Higher Education methodology published by the British Universities Finance Directors Group. Further details are provided in the Measures of Financial Performance section below. EBITDA reduced in 2023/24 to (£0.9)m. This is a significant reduction compared with the 2022/23 EBITDA of £11.8m. As a percentage of total income, 2023/24 EBITDA represents (0.3)% of total income (adjusted for Tay Cities income) (2023: 3.6%).

The Group reports net assets of £272.4m at 31 July 2024, an increase of £81.2m in the year. This increase is mainly due to the USS accounting adjustments which are not related to financial operating performance. The cash balance has reduced to £32.4m (2023: £74.4m). Net cash from operating activities was an outflow of £17.1m and this is described in more detail in the Cashflow and Treasury section of this review. No new loans were drawn down in the year. The significant drop in EBITDA performance and the cash outflow are clear indications of a material deterioration in financial performance during the financial year.

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Financial Statements 2023/24

Income

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|||||||| |---|---|---|---|---|---|---| |Total income decreased by £0.6m (0.2%) to £325.1m (2023: £325.7m).| |5| |2024|2023| |4|1| |1|SFC grants|£86.3m|26.6%|£86.7m|26.6%| |2|Tuition fees|£115.5m|35.5%|£117.6m|36.1%| |3|Research grants and contracts|£71.2m|21.9%|£78.9m|24.2%|3| |4|Donations|£8.5m|2.6%|£3.5m|1.1%| |5|Other|£43.6m|13.4%|£39.0m|12.0%| |Total|£325.1m|£325.7m|2| |Total income 2024 — Source: Consolidated and Institution Statement of Income and Expenditure|

----- End of picture text -----

Total grant income from the Scottish Funding Council reduced by 0.5% to £86.3m, with teaching income flat and income for research and innovation reducing by £1.0m.

Tuition Fee income reduced by 1.8% in the year and totalled £115.5m. Income from international students, one of the essential foundations of the University’s future financial sustainability, demonstrated minimal growth, increasing by only £0.4m from the previous year as a result of a challenging environment for international student recruitment.

Research income has decreased by £7.7m or 9.8% to £71.2m. Diversification in the sources of research income and an increase in commercial funding leads to a more volatile level of research income recognition due to the nature of the contractual performance conditions. The University continues to have a high level of research intensity with 21.9% of income from external research grants and contracts.

Expenditure

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||||||||| |---|---|---|---|---|---|---|---| |Total expenditure (excluding the impact of the USS adjustment on staff costs and|3|4| |interest) increased by 1.1%, an increase of £3.6m to £333.8m (2023: £330.2m).| |2024|2023| |1|Staff Costs|£183.0m|54.8%|£174.5m|52.9%| |2|Operating expenses|£128.3m|38.5%|£130.8m|39.6%|2|1| |3|Depreciation and amortisation|£20.4m|6.1%|£23.0m|7.0%| |4|Interest|£2.1m|0.6%|£1.9m|0.5%| |Total adjusted for USS|£333.8m|£330.2m|

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Total expenditure 2024 — Source: Consolidated and Institution Statement of Income and Expenditure with Staff Costs and Interest adjusted for the impact of the USS pension accounting adjustment

Staff costs have increased by 4.9%, increasing by £8.6m to £183.0m, with staff numbers increasing by 6.8%. Staff costs in 2023/24 benefitted from reduced employer pension costs compared with 2022/23. Staff costs as a percentage of total income has increased to 56.3% (2023: 53.6%) reflecting the increase in staff costs while overall income has reduced. The increase in staff costs to 56.3% would have been even higher had it not been for the reduction in employer pension costs.

Other operating expenses reduced by 1.9% to £128.3m as a result of a reduction in costs relating to international student scholarships and agent fees.

Depreciation and amortisation reduced by £2.6m to £20.4m (2023: £23.0m) including an impairment of £0.9m in intangible assets relating to software implementation and £0.9m fixed asset impairment due to the cessation of capital works due to the University’s challenging financial position. Prior year depreciation included a £5.9m impairment relating to the presence of Reinforced Autoclaved Aerated Concrete (RAAC) in three University buildings, the Fulton building, Crawford building and the Dundee University Students Association building. The impairment reflected the impact of closure of parts of these buildings on the value of the assets to the University.

11

University of Dundee

Measures of financial performance

The University has identified EBITDA as a key measure of financial performance. The calculation of EBITDA in accordance with the Higher Education methodology published by the British Universities Finance Directors Group. This measure is calculated as follows:

Surplus/Deficit before other gains and losses

– new permanent endowments.

At the reporting date of 31 July 2024 the University Court had approved a target of 7% EBITDA as a percentage of income as a strategic KPI.

EBITDA for 2023/24 is (£0.9)m. This is a reduction of £12.7m compared with the 2022/23 EBITDA of £11.8m. As a percentage of total income, 2023/24 EBITDA is (0.3)% of total income (2023: 3.6%). This is a significant deterioration of 3.9 percentage points compared with the prior financial year.

Staff costs as a percentage of income (adjusted for movements on USS provision) is a further key measure, with the university targeting a reduction over time to more closely align with sector norms. Achieving this reduction in percentage terms becomes more challenging as income growth is constrained by the challenging international student recruitment market.

Staff costs in 2023/24 represent 56.3% of income, an increase from the 2022/23 proportion of 53.6% and a part reversal of the positive reduction seen in recent years. The percentage increase would have been even higher had it not been for the reduction in employer pension contribution costs.

Other gains and losses

The Group made a small loss of £17k on the write-off of investments in spin-out companies (2023: £215k gain). A net non-cash gain of £2.5m is reported on investments (2023: £0.1m loss). Endowment investments increased by £3.1m in the year (2023: £0.5m increase). Endowment investments are held at market value and are managed on the University’s behalf by external fund managers. The Group made a loss of £0.6m on other investments.

Actuarial gain in respect of pension schemes

This figure relates to the University of Dundee Superannuation Scheme (UODS). In addition to employer contribution rates, during 2023/24 the University made additional cash payments totalling £3.6m (2023: £3.5m).

The FRS 102 valuation at 31 July 2024 shows an overall £13.2m improvement, including actuarial gains of £6.6m, resulting in a closing provision of £27.8m for the UODS scheme (2023: £40.9m).

Net assets

At 31 July 2024 the University net assets were £272.4m, a £81.2m increase on the prior year as a result of the accounting surplus. The main reason for the increase is the release of the USS provision plus the gain on investments and the accounting impacts of the UODS pension scheme.

Capital expenditure of £43.8m included the construction of the Tay Cities Deal capital projects, space refurbishments and continued investment in IT systems, digital infrastructure and research and teaching equipment.

Net current liabilities at 31 July 2024 amounted to £30.4m, a reduction of £39.5m against the £9.1m net current assets reported at 31 July 2023. The primary driver of this reduction is the £42.0m reduction in cash and cash equivalents in the year, described further below.

The pension scheme provisions as at 31 July 2024 primarily relate to the UODS pension arrangements and with the USS provision released in full reduce overall this year from £124.9m to £31.2m based on latest valuation and actuarial advice.

Cashflow and treasury

Cash and cash equivalents reduced by £42.0m over the year, closing at £32.4m, which is a very low level of cash for a University with a turnover of over £325m. The closing cash balance at 31 July 2024 was only £2.4m above the minimum cash balance threshold of £30m set by the University. This was exacerbated by the removal of access to the Revolving Credit Facility due to breach of covenant. Previous consideration of the University's cash position was based on the assumption of the continued availability of this facility. The significant deterioration in the University's cash balance and in EBITDA clearly highlighted the severity of the University's financial position and that urgent financial recovery measures were required. Actions to reduce cost commenced significantly later with the public acknowledgement of the University's financial challenges in November 2024.

Net cash outflow from operating activities was £17.1m.

Working capital movements include a £4.9m decrease in debtors, including a £4.3m increase in accrued income on research projects and a £4.4m reduction in trade receivables reflecting lower student debt as a result of a reduced January 2024 intake.

Since the end of the reporting period the University has agreed a minimum expected cash balance of £30m.

At 31 July 2024 the University had in place a three-year £40m Revolving Credit Facility with options to extend via one year extensions at the end of years one and two although this facility was not accessible at 31 July 2024. This facility was

12

Financial Statements 2023/24

undrawn. As a result of the deterioration in the University's financial performance a breach of covenants occurred and this had not been flagged in advance to the lender. The University was therefore unable to access this facility. In August 2025, and following approval by Court, the University cancelled the Revolving Credit Facility.

No additional loan finance from other sources has been drawn down during the year. Of the £15.9m low-interest loan finance from the Scottish Funding Council drawn down in previous financial years, £1.1m was repaid in the year.

Endowment assets of £33.4m (2023: £30.0m) continue to be managed by independent fund managers whose performance is monitored by the University’s Finance and Policy Committee.

Supplier payments

The University supports the Prompt Payment Code in its relationship with suppliers. It is the University’s policy that payments to suppliers are made in accordance with the terms and conditions agreed between the University and its suppliers, providing that all trading terms and conditions have been complied with. At 31 July 2024 the University had an average of 21 days purchases outstanding in trade creditors (2023: 28 days).

Interest paid under the Late Payment of Commercial Debts (interest) Act 1998 was £97 (2023: £59).

Pensions

The University contributed to three main pension schemes for its employees during the year, the Universities Superannuation Scheme (USS), the University of Dundee Superannuation Scheme (UODS) and University of Dundee Royal London Pension Scheme (RLPS). A detailed analysis of these schemes is given at Note 32 of the financial statements.

The revaluation of USS at 2023 is the basis of the provision release calculation at 31 July 2024. The 2023 valuation was the seventh valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions (the statutory funding objective). At the valuation date, the value of the assets of the scheme was £73.1 billion and the value of the scheme’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%.

Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The institution is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee Benefits", the institution therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged in the Consolidated Statement of Comprehensive Income in financial year 2023/24 represents the contributions payable to the scheme of £16.5m together with the £80.3m provision release.

A formal actuarial valuation for the University of Dundee Superannuation Scheme was carried out as at 31 July 2023 and consultation of resulting changes concluded in September 2024. As of September 2024, the University pays 13.26% of salary in respect of future accrual, and additional monthly lump sum contributions. The University of Dundee Superannuation and Life Assurance Scheme (UODS) closed to new entrants on 31 December 2022. The Defined Benefit scheme remains open for existing active members on this date.

Financial outlook

The five-year plan approved by Court in June 2024 included a material reduction in forecast international student recruitment as a result of the very challenging sector-wide student recruitment market. To partly offset this reduction, ambitious savings targets were set over all five years of the plan, requiring significant savings in staff costs and other operating expenses and growth in other income streams.

Establishing an effective process to implement these savings was not taken forward by the Executive and no pathway to achieving the savings was presented to Court for their scrutiny.

Following the end of the 2023/24 financial year, updated student recruitment data and revised financial forecasts for the 2024/25 financial year were prepared. These updates identified a material shortfall in student recruitment against budget assumptions and lack of progress in the delivery of material saving targets and cost mitigation measures included in the approved 2024/25 budget and plan. Delivery of these targets was essential to protect low cash balances and maintain sufficient cash for University operations.

These revised forecasts, highlighting a material deterioration in the University’s financial position, were presented to the University Executive Group on 12 November 2024, with updated forecasts indicating a potential operating deficit of circa £30m for financial year 2024/25.

Since that time, in response to the crisis in leadership and governance described in “The University Crisis” on page 6, a new University Executive Group is in place. No members in post in 2024 remain in post in April 2026. Membership of the University Court is materially changed, and with a new Chair of Court in place. There is a renewed focus on driving good governance and leadership across the entire University and on addressing the institutional failings so clearly highlighted in the Gillies Report. Cost reductions included a Voluntary Severance scheme in 2025 resulting in a reduction of 240 FTE. A further Voluntary Severance scheme closed in March 2026 and resulted in a reduction of 111 FTE.

Throughout the period from November 2024 when the University’s financial position was made public to the date of signing these financial statements a number of financial plans have been prepared and shared with stakeholders. In spring of 2026 the University prepared a Strategy to Recovery with engagement with a range of stakeholders including staff and students. This Strategy to Recovery was approved by Court and submitted to the Scottish Funding Council in June 2026 and aims to bring the University back to a sustainable position so that it can survive the current severe financial challenges and then thrive once again in the future.

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University of Dundee

Two Voluntary Severance schemes have taken place to reduce core recurrent staffing costs, reflecting the University’s commitment to ensuring past failings are not repeated by taking significant action to start putting the University on a path to financial sustainability.

In January 2026 the University prepared an updated forecast for financial years 2025/26 to 2029/30 with revised income projections together with cost reductions to put the University on a path to financial sustainability. This forecast forms the basis of the going concern assessment as described in the Basis of Preparation section of the Principal Accounting Policies section of these Annual Reports and Financial Statements.

This updated forecast targets an EBITDA of 8% to 10% by 2027/28.

It is important to note that further significant cost reductions, over and above those savings derived from the second VS scheme, in the region of £20m-£25m will be required to achieve an EBITDA in this range. The entirety of the University’s cost base must be considered for reduction, however as staff costs constitute the majority of operational spend the bulk of further savings will, regrettably, need to come from staff costs.

The going concern forecast assumes that action to implement these further cost savings is taken in the second quarter of the 2026 calendar year, subject to approval by Court and working within the parameters of the Scottish Funding Council Conditions of Grant for the Section 25 funding. Taking action to achieve these savings is a key assumption in the University’s financial forecasts and a key determinant of the appropriateness of preparing these financial statements on a going concern basis. Delivering the scale of savings required will require significant change and transformation in the University’s operations. On this basis, the University Court has concluded that a material uncertainty exists in relation to the University's ability to continue as a going concern.

On 16 June 2026 the University announced it had entered into formal Collective Consultation for a minimum period of 45 days as it moves forward with identifying further savings across its entire cost base.

Please refer to the Statement of Principal Accounting Policies, Going concern section for further detail.

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Financial Statements 2023/24

Equality, diversity, and inclusion

The University recognises and profoundly regrets the significant impact of the crisis on staff and acknowledges that the period since the crisis emerged has been deeply challenging. With new leadership in place, and an acknowledgement of previous issues, all actions taken continue to be in line with University policies.

In August 2025, the University undertook a listening exercise with staff to gauge the impact the crisis had and deployed a programme of mitigations to address the issues that emerged from this exercise.

Irrespective of the University’s crisis and the matters impacting the leadership and governance of the University, the position around and commitment to equality, diversity and inclusion (EDI) remained strong in 2023/24.

We are a University of Sanctuary, and have been able to offer refuge and support to those displaced by humanitarian crises, merging our humanitarian initiatives with our educational objectives. Financial constraints since the crisis emerged have curtailed activity in this area.

During 2023/24, we re-energised our support for EDI by investing in this area. The first outcome of this investment was the development of an EDI Strategy 2024-2027 based on four foundational interlocking themes, these are:

1. Inclusive campus communities - where everyone feels valued, respected, empowered, safe, and able to achieve their full potential.

2. Workforce diversity - that harnesses the power of representative backgrounds, experiences, and perspectives, encouraging creativity, and dynamic research and teaching outcomes.

3. A vibrant research culture and environment - that actively promotes an inclusive atmosphere, enhancing collaboration and innovation, fostering societal impact via transformative discoveries.

4. Equity in educational achievement and experience - ensuring a proactive, accountable educational approach empowering every student to excel and thrive.

This strategy is an important step towards developing our Public Sector Equality Duty response for 2025 as referenced below.

The Public Sector Equality Duty (PSED) reporting cycle for 2023 include:

Since the reporting date of 31 July 2024, the University has reported on the 2025 PSED cycle; these reports include an Annual Staff Diversity Report 2025, a Mainstreaming Report 2025, and Equal Pay Report 2025 and an Equality Outcomes Report for 2025.

As part of our systemic approaches to EDI, the University continues to implement the action plans we devised for our Athena Swan and Race Equality Charters. These action plans are fundamental to improving working and learning practices for students and staff.

In 2023/24, the University conducted a significant review of the Dignity at Work and Study Policy, with the aim of streamlining the policy and emphasising support for informal resolution. The rollout of the revised policy included a toolkit to support students, staff and those responding to reports of harassing or bullying behaviour.

The University runs a biennial staff engagement survey which we analyse by characteristic groups and use to direct the future work of the EDI team. This was last completed in 2023 and has been paused due to financial restrictions. In addition, we have very active staff networks for ethnic minority, LGBT+ and Disabled staff. These groups act as a supportive mechanism for colleagues, but also help the University prioritise and shape policy and process.

We continue to support Disabled staff (5.8%) through recruitment and the employee journey. As part of this the EDI Team has reviewed of the reasonable adjustment support process for Disabled staff as a key priority, and this is embedded as part of the EDI strategy. The outcome of this is to ensure Disabled colleagues have appropriate support through the application and recruitment process, are supported with reasonable adjustment should their disability status change within their employment, and have full access to all career development opportunities supporting progression and promotion.

With regards to Fair Work Practices, the University complies with all aspects of the recommendations, as detailed below.

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University of Dundee

16

University of Dundee

Corporate Governance

This report covers the period from 1 August 2023 to 31 July 2024 and developments up to the date of approval.

The Gillies Report into financial oversight and decision making at the University of Dundee was published on 19 June 2025. In addition to inadequate financial management and reporting, the report identified serious governance failures relating to financial accountability by the Court and its committees.

The University welcomed Professor Gillies’ report following the robust and rigorous investigation into the circumstances which led to the University’s current financial position. It was evident from the report that there had been serious failings in financial monitoring, management and governance. These failings are described in the Foreword of the Gillies Report. While there were significant external factors, which had affected the higher education sector across the UK to varying degrees, the University’s response to these, and responsible management of our finances, had fallen well short of the standards required by the Scottish Code of Good HE Governance and the standards that everyone should have expected.

The University has taken robust action to address the serious failings in maintaining good stewardship of the University in the period up to November 2024. A detailed action plan was put in place in August 2025 which sets out actions to be taken in the areas of:

The underpinning action plan created 64 individual actions under the four themes, and mapped out these actions within three time periods – January 2026, July 2026 and January 2027. There was also a section listing commitments undertaken by the University in relation to the Gillies Response, including the commitment to provide SFC with a monthly update on progress. This has happened consistently since the publication of the Action Plan in August 2025.

The tranche of actions for the first period closed at the end of January 2026. During this first period, the University successfully moved 33 actions to complete. As part of the review of this first period, UEG discussed and agreed to add an additional six actions to the plan, which will all be completed within the July 2026 timeframe. During this period, it was also agreed to rebadge the plan as the University Action Plan (UAP) to reflect the development and expansion of the actions and the University’s ownership of its progress in these areas.

Our Action Plan is designed to rectify the causal factors identified in the Gillies Report to ensure a sustainable future for the University, built upon strong governance, financial competence, transparency, and accountability. Our response to the Gillies Report, including the full action plan, can be viewed here: dundee.ac.uk/strategy-recovery/gillies-report/actionsgillies-report

Our institutional integrity depends on the implementation of immediate, robust, and impactful action to instigate significant structural, operational, and cultural change. As changes are implemented, we are directly addressing identified weaknesses, improving governance and strengthening controls. These changes will, as appropriate, feed into updates to the Standing Orders of the University.

At the time of approval of these Financial Statements all current actions are progressing in line with the projected timeline and all prior actions due have been completed.

Compliance with the Scottish Code of Good Higher Education Governance

In the opinion of the Court (the University’s Governing Body), material non-compliance with the principles and provisions of the 2023 Scottish Code of Good Higher Education Governance occurred in 2023/24 as outlined in the Gillies Report, including non-compliance with:

The University acknowledges the seriousness of this noncompliance with the Scottish Code and the Financial Memorandum which was a contributing factor to the financial aspects of the crisis that first emerged in November 2024. As part of our response to the Gillies Report, the institution is taking action to address these weaknesses by engaging fully with the Scottish Funding Council. The University is aware of further Procurement related breaches of regulations or policies in financial year 2023/24 and other years and is taking appropriate reporting action.

The University has taken steps to identify and address all areas of non-compliance but cannot state with certainty, due to the current management and individuals charged with governance not being in post during the financial year in question, that all non-compliance from 2023/24 has been identified and reported.

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Financial Statements 2023/24

All required actions to ensure compliance are included within this response and the University continues to work towards full compliance with the Scottish Code, with a further update to be provided in the next Financial Statements. The University continues to report to SFC in between financial reporting, including highlighting any forecast or actual material changes.

Constitution and Regulation

The University is an independent corporation and a registered Scottish charity (SC015096). Its legal status derives from a Royal Charter originally granted in 1967 and its objects, powers and framework of governance are set out in the Charter and its supporting Statutes, as amended from time to time with the approval of the Privy Council. The core mission of the University continues to be ‘to transform lives through the creation, sharing and application of knowledge’. The mission and vision build on the formal original objects of the University, as laid out in the Charter, which are to ‘advance and diffuse knowledge, wisdom and understanding by teaching and research and by the example and influence of its corporate life’.

The Charter and Statutes require the University to have two separate bodies to oversee and manage its activities, as follows:

Court is the governing body, responsible for the finance, property, investments, employment of staff and general business of the University, and for setting the general strategic direction of the institution. The statement of Primary Responsibilities was adopted by the Court on 24 April 2018 and can be found at: dundee.ac.uk/corporate-information/statement-primaryresponsibilities-court

Court has a total membership of 24, with a majority of lay members from outside the University. Members also include representatives of the student body and the staff of the University, including two members nominated by the recognised trade unions.

The Chair of Court for the 2023/24 academic year, Amanda Millar, was elected in April 2022 and appointed from 1 August 2022; she resigned on 17 February 2025. Tricia Bey served as Acting Chair of Court between 18 February and 19 June 2025. Between 19 June and 27 November 2025 Dr Ian Mair served as Acting Chair of Court.

Esther Roberton was elected Chair of Court on 27 November 2025.

The Deputy Chair of Court, is appointed by the Court on the recommendation of the Governance and Nominations Committee and deputises for the Chair as necessary. In 2023/24 and for the majority of 2024/25, the Deputy Chair of Court was Tricia Bey. Dr Ian Mair, the current Deputy Chair of Court was appointed to the post on 16 June 2025.

The lay members are all considered to be independent. The Governance and Nominations Committee appoints ten such members following an external advertisement and interview. This process takes into account the skills and diversity of existing

Court members as well as future requirements and issues of succession, for example, to convenerships of Court Committees. The Court uses a skills matrix; the most recent version for the 2024/25 financial year is available at: dundee.ac.uk/corporateinformation/university-court-skills-matrix. The matrix was developed to inform lay appointments to the Court and has agreed a statement setting out its goals in relation to the balance of its membership in terms of equality and diversity, and this is also reflected in objectives for the Court within the University’s Race Equality Charter Submission.

With the exception of the Chair of Court, none of the lay members receive any payment other than eligibility for the reimbursement of expenses for the work they undertake for the University. The Chair of Court is entitled to be remunerated at a gross per diem rate equivalent to the Tier 1 minimum for chairs set out by the Scottish Government in the Daily Fee Framework of its technical guide to the Public Sector Pay Policy for 2023 to 2024. For the financial year 2023/24 this was equivalent to a gross daily rate of £344. In financial year 2023/24 the Chair of Court, Amanda Millar, was remunerated for 567.5 hours totalling £24,118.75.

The powers reserved to Court and those it has delegated to its Committees, to Senate and to the Principal and other senior officers, are set out in a Schedule of Delegation and Decisionmaking Powers.

Subject to the general control and approval of Court, Senate is the academic authority of the University and draws its membership entirely from the staff (mainly academic staff) and the students of the institution. The membership conforms to the requirements of the Act: more than half of its membership comprises elected staff and students, and students comprise more than 10% of the total membership. Its role is to direct and regulate the teaching, learning and research work of the University. Senate is supported in this respect by a number of committees including the Learning and Teaching Committee (renamed Education and Student Experience Committee in 2025), Research and Knowledge Exchange Committee (renamed Research and Innovation Committee in 2026), Quality Assurance and Enhancement Committee, and Internationalisation Committee (renamed Global Engagement and Future Students Committee in 2025). Senate is chaired by the Principal and ViceChancellor. The Court receives regular reports from the Senate and the Chair of the Senate, highlighting matters of decision, interest and noting.

The University Charter also requires the University to have a Staff Council. The Staff Council is a forum for all staff and its functions are set out in Statutes and Ordinances. All staff of the University are members of the Council which is chaired by the Principal.

The University is regulated by the Scottish Funding Council under a Financial Memorandum and is required to comply with the conditions of grant set out in the funding arrangements. The Scottish Funding Council introduced a new Outcomes Framework and Assurance Model (OFAM) in June 2024 which requires the University to report regularly on its performance against agreed outcomes to demonstrate that it meets conditions of grant.

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University of Dundee

Statement of Responsibilities

Court has adopted a Statement of Primary Responsibilities which sets out its duties, including overseeing the delivery of the University’s mission and strategy, and overseeing the management of all revenue and property.

The University maintains a register of interests of members of Court and senior officers, which may be consulted by arrangement with the University Secretary. The interests of individual members are also published on the University’s web pages.

Court is responsible for keeping proper accounting records setting out the financial position of the University and which enable it to ensure that the financial statements are prepared in accordance with the Charter and Statutes, the Statement of Recommended Practice (Accounting for Further and Higher Education Institutions) and other relevant accounting standards. In addition, within the terms and conditions of the Financial Memorandum agreed with the Scottish Funding Council (SFC), Court is required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the University and of the surplus or deficit and cash flows for that year.

When management is preparing the financial statements, Court has to ensure that:

Court also has a responsibility to:

The University’s system of internal financial control includes the following key elements:

In 2023/24 and subsequent years, the University Executive Group, Court and the Audit & Risk Committee have formally reviewed the institutional risk register regularly, with biannual reporting to Audit & Risk Committee and annual reporting to Court.

The University fully accepts the findings of the Gillies Report which found that there were clear failings in financial monitoring, management and governance at the University during the reporting period 2023/24.

Remedial action taken by the University following the crisis serves to demonstrate the University’s commitment to supporting and complying with the Financial Memorandum with the Scottish Funding Council, and to reaffirm the University’s commitment to openness, integrity and accountability, having regard to the Nine Principles in Public Life. These failings impacted on Court's ability to meet its governance responsibilities.

Any enquiries about the constitution and governance of the University should be addressed to the University Secretary.

Committees

The Gillies Report referenced areas of weakness in the overall governance of the University, alongside failures in financial governance. As part of our response to the Gillies Report we have committed to a number of actions that will seek to address the deficiencies around setting and monitoring strategic direction, overseeing effective fiscal management and risk, and ensuring legal, ethical, and regulatory compliance through our committee structure. As part of the University Action Plan, a full external review of the University’s committees is being carried out in 2026. An overview of actions can be viewed here: dundee.ac.uk/ strategy-recovery/gillies-report/actions-gillies-report

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Financial Statements 2023/24

Although Court meets at least five times each academic year, including an annual strategic retreat, much of its detailed work is handled by committees: Finance and Policy Committee, People and Organisational Development Committee, Governance and Nominations Committee, Remuneration Committee and Audit and Risk Committee. These committees have written remits, which are reviewed annually, and their decisions and recommendations are formally reported to Court. They each have a specified membership, including lay members and a lay convener, which is approved on an annual basis.

The composition of Court and its committees, along with the attendance of members at meetings during the session 2023/24, is set out in the table below. In summary the committees operate as follows:

The Governance and Nominations Committee has general oversight of the governance framework of the institution, considers changes to the governing instruments and makes recommendations to Court on Court and committee membership. It considers the contributions and commitment of members to the work of the Court and its Committees and more generally to the life of the University. The Committee plays a role in overseeing the effectiveness of the Court and its committees in providing support and challenge to the University Executive Group.

The Governance and Nominations Committee met four times in 2023/24.

The Remuneration Committee determines the remuneration of the members of the University Executive Group, including the Principal, and oversees the University Executive Group’s decision-making in relation to the remuneration of other grade 10 staff across the University. The Remuneration Committee is expected to represent the public interest and avoid any inappropriate use of public funds. In preparation for this role, and to ensure transparency over decisions on remuneration, the Committee is guided by the Court on the policy it wishes the Committee to adopt in reaching its decisions with regard to senior executive pay. The Committee comprises four lay members of Court, a student and a staff member. The Chairperson of Court is included within this membership but is not the Convener of the Committee.

Whilst the Principal is invited by the Committee to attend in order to advise on the remuneration of members of the University Executive Group, the Principal is not present at any meeting of the Committee that considers their own remuneration. The Committee submits an annual report to the Court which provides further detail on the operation of the Committee and policy and approach to the review of senior pay. The Committee has reviewed its Remit, Terms of Reference and Severance Policy in light of sectoral reports and works closely with the People and Organisational Development Committee to ensure the robustness of practice.

The Remuneration Committee met three times in 2023/24. Note during 2024/25 the Committee met regularly, including meeting to consider and approve the exit arrangements for the Interim Principal and Vice-Chancellor, Professor Shane O'Neill.

The Audit and Risk Committee, which can include up to two additionally co-opted non-Court members, is chaired by a lay member of Court and meets four times a year, with the University’s internal and external auditors in attendance. The Committee considers detailed reports from the internal and external auditors, together with recommendations for the improvement of the University’s systems of internal control and management’s responses and implementation plans.

The Audit and Risk Committee’s role is one of high-level review of the arrangements for internal control, risk management and value for money. It also makes recommendations to the Court on the appointment of both internal and external auditors. It has authority to investigate any matters within its terms of reference. Whilst senior university officers attend meetings of the Committee, as necessary, they are not members of the Committee. In order to safeguard the independence of the University’s external auditors, provision by them of any nonaudit services is subject to the approval of the Audit and Risk Committee.

The Audit and Risk Committee also has a general responsibility for monitoring the operation and effectiveness of the University’s Public Interest Disclosure and Anti-Bribery policies and arrangements.

The Audit and Risk Committee met four times in 2023/24.

The Finance and Policy Committee advises Court on all matters pertaining to the financial health and sustainability of the University and makes recommendations to Court on the adoption of financial forecasts, annual budgets and the financial statements (this last with the Audit and Risk Committee). The Committee also reviews and monitors the Estates Strategy, including providing scrutiny of major capital developments.

The Finance and Policy Committee met four times in 2023/24. To note, over the period between June 2025 and January 2026, the Finance and Policy Committee did not meet as scheduled due to the lack of a Committee Convener. All relevant Finance and Policy matters were considered at full Court. To note, Court was inquorate at the meeting in July 2025 and, as a result, formal decision making was affected. This included consideration of the University's 2025/26 budget which was presented to this meeting of Court for approval. A 2025/26 budget has subsequently been updated and approved by Court.

The People and Organisational Development Committee oversees all policies, strategies and procedures relating to the staff of the University other than those for which the Remuneration Committee is responsible. This includes performance; organisational development; reward and recognition; leadership and management; equality and diversity; health, safety and wellbeing; and retention and recruitment.

In 2023/24 the People and Organisational Development Committee met three times.

Full remits for all committees of Court are available from the University’s website at: dundee.ac.uk/governance/university/court

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University of Dundee

Effectiveness

In response to the findings of the Gillies Report, action is being taken to strengthen the induction, training and development offerings for Court. Members of the Court are encouraged to participate in training and development sessions offered by Advance HE as part of its Governor Development Programme. In addition, training sessions are organised from time to time on issues of relevance, and briefing presentations are held as appropriate prior to meetings of the Court to provide members with training and contextual information of relevance to items on the agenda. Information webinars have been introduced, and these will be rolled out more widely in future. Members of the Audit and Risk Committee are also encouraged to attend external training sessions provided by the audit sector.

The Court reflects annually on the effectiveness of both the Chair and the Court itself, and each committee also reflects annually on its own effectiveness and general operation, with outputs from these committee reviews being considered by the Court.

In addition, the effectiveness of Court and its Committees is evaluated formally using external facilitation at least every five years in accordance with the Scottish Code of Good Higher Education Governance and the SFC’s Expectations of Good Governance, published in September 2025. The most recent review occurred in the summer of 2024 with a report considered by Court at its meeting in November 2024. This report highlighted a number of areas for improvement, which the Governance and Nominations Committee was tasked with taking forward. The actions were subsequently incorporated into the University Action Plan developed following the Gillies findings.

The Audit and Risk Committee carries out formal self-assessments every four years, and the most recent was carried out in spring 2021, with a number of recommendations for enhancement introduced. A self-assessment was not carried out in 2025 because of the crisis and has been rolled over to 2026. The Chairperson of Court and Deputy Chairperson of Court meet with Court members on an individual and informal basis at least annually to discuss their contribution and development needs and to provide guidance and support if needed.

To promote transparency and accountability, the Court holds an annual public meeting, open to all with the Chair of Court and the Principal and Vice-Chancellor present to take questions with regard to the performance of the University and the operation of the Court over the previous 12-month period. The most recent public meeting of Court was held in January 2024. No public meeting was held in 2025 owing to the challenges facing the University, but regular scheduling of open meetings is due to recommence in 2026/27.

Executive

The Principal and Vice-Chancellor is the chief academic and administrative officer of the University, who has a general responsibility to Court and for maintaining and promoting the efficiency and good order of the University. As de facto Chief Executive, the Principal exercises considerable influence upon the development of institutional strategy, the identification and planning of new developments, and shaping of the institutional ethos. Under the terms of the formal Financial Memorandum between the University and the Scottish Funding Council, the Principal is also the accountable officer of the University.

The Principal and Vice-Chancellor chairs the University Executive Group (UEG) and presents a written report on its work to each meeting of Court. In 2023/24 the UEG comprised the Principal, the Deputy Vice-Chancellor and Provost, the Vice-Principals, the University Secretary and Chief Operating Officer, the Director of People, the Director of Finance and the Director of the University Executive and Strategy Office.

As a result of the crisis, there have been changes in senior leadership. Professor Iain Gillespie was University Principal in the 2023/24 reporting period but he demitted office in December 2024. Professor Shane O’Neill was Interim Principal between December 2024 and June 2025, when Professor Nigel Seaton was appointed Interim Principal and Vice Chancellor. The University is due to appoint a permanent Principal in 2026.

Dr Jim McGeorge was Chief Operating Officer (COO) and University Secretary during 2023/24 but he demitted office in May 2025. In line with the recommendations of the Gillies Report, the responsibilities of the COO and the Secretary were separated in June 2025. Dr Veena O’Halloran was appointed Interim University Secretary in July 2025 for a fixed term of three months. She was succeeded by Jon Price in October 2025. Jon Price stepped down in December 2025 when Philip Henry became Interim Secretary. Dr Hulda Sveinsdottir took up post as permanent University Secretary in March 2026.

Since the announcement of the crisis in November 2024, the University Executive Group membership has changed fundamentally. All those serving in 2023/24 have left the organisation. A new structure for the UEG has been put in place, with the following membership: Principal and Vice-Chancellor; Vice Principal Global Engagement and Future Students; Vice Principal Education and Student Experience; Vice Principal Research and Innovation; four Faculty Vice Principals (Arts and Social Sciences; Health; Life Sciences; Science, Engineering and Business); Chief Operating Officer; University Secretary; Chief People Officer; and Chief Finance Officer.

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Financial Statements 2023/24

Strategic Planning and Monitoring

During 2021/22, the University developed a new strategic plan for the period 2022-27, which was approved by the University Court in February 2022. The University Strategy 2022-27 was further developed to respond to three “strategic pillars”, progress against each of which was monitored by implementation plans. These implementation plans, and a set of Institutional Key Performance Indicators, were approved by Court in April 2022 and revised in November 2023.

As the University’s crisis emerged in November 2024, work towards the 2022-27 Strategy was put on pause and many of the identified KPIs were therefore not met. The University has prepared a new Strategy to Recovery which was approved by Court in June 2026 and will support the move towards long-term financial sustainability. The Strategy to Recovery will serve to guide the University over the short term as strategic planning and consultation begins for a Strategy 2027-32. This work will be fully realised following the appointment of a substantive Principal and Vice-Chancellor.

Equality, Diversity and Inclusion

In accordance with Section 8 of the Gender Representation on Public Boards (Scotland) Act 2018, the University reviewed its position in relation to the Gender Representation Objective (GRO), compiling a report approved by Court in February 2024. In it the University demonstrated it had achieved the GRO (50% of the non-excluded membership of a governing body are women) but continued to review its position when considering membership and succession planning. The Court made a commitment in its ‘Statement on Equality, Diversity and Inclusion on the University Court’ to achieving diversity amongst its membership which reflects the diversity within the University community.

Among other commitments made by the Court within the University’s Race Equality Charter (REC) Submission, the Court set itself the objective of increasing BAME representation on Court to at least reflect the current ethnic make-up (10%) of the University Community within a period of three years. In the year 2023/24, the percentage of BAME individuals amongst the lay members of Court was 30%. The Court and its People and Organisational Development Committee maintain an active interest in the achievement of the REC action plan. During 2023/24, the University developed a new Equality, Diversity and Inclusion Strategy, which was adopted by the Court at its meeting on 10 June 2024. The EDI Strategy was launched in October 2024, and the actions were embedded in the Public Sector Equality Duty as the University Equality Outcomes in April 2025.

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University of Dundee

Court and Committee Attendance 2023/24

Membership of Court and its committees is set out in the Tables below. In 2023/24 Court held five meetings. The following persons served as members of Court during the year from 1 August 2023 to 31 July 2024.

----- Start of picture text -----
Court F&PC G&NC PODCo A&RC RC
Name Notes (of 5) (of 5) (of 4) (of 3) (of 4) (of 3)
Amanda Millar, Chair To 17/02/2025 5 4 4 - - 3
Janice Aitken To 31/07/2024 5 - - 2 - -
Glenn Allison 4 3 - - - -
Alan Bainbridge 5 2 - - - -
Tricia Bey Acting Chair from 5 4 4 - 4 -
18/02/2025
Ian Buerger To 31/07/2024 5 - 4 - - -
Gregory Colgan 3 - - - - -
Claire Cunningham To 11/12/2024 5 - - 3 - -
Mike Ferguson 4 4 - - - -
Iain Gillespie To 05/12/2024 5 4 3 - - 2
- - - - - -
Keith Harris, Rector [2]
Andrew Lothian 3 - - - 3 -
Linda Martindale 5 4 - - - -
Ron Mobed 2 3 - - - 3
Nyasha Mutembwa To 31/07/2024 4 4 - - - 2
Anna Notaro 5 - 3 - - -
Carla Rossini 3 3 - - 1 -
Amina Shah 3 - 2 (of 3) 1 (of 1) - -
Karthik Subramanya 3 - - 3 - -
Jay Surti 5 - - 3 - 3
Sharon Sweeney 3 - 4 - - 3
Garry Taylor 5 4 - - - -
Karen Thompson To 31/07/2024 5 - - 2 - 3
Susan Walker To 30/09/2024 4 - - - 3 -
Irene Wilson [1] - - - - 3 -
Keith Winter To 31/07/2024 4 3 - - 4 -
----- End of picture text -----

*Lay Members

24

Financial Statements 2023/24

Court and Committee Attendance 2024/25

----- Start of picture text -----
Court F&PC G&NC PODCo A&RC RC
Name Notes (of 18) (of 5) (of 4) (of 5) (of 8) (of 3)
Amanda Millar, Chair To 17/02/2025 4 (of 4) 2 (of 2) 2 (of 2) - - 2 (of 2)
Glenn Allison To31/03/2025 3 (of 8) 3 - - 2 (of 2) -
Alan Bainbridge 17 5 - - - 3
Tricia Bey Acting Chair 15 (of 15) 5 4 - 2 (of 2) -
from 18/02/2025
to 19/06/2025
Manaswi Budhathoki From 01/08/2024 16 4 - - - 1
Carolina Castro From 01/08/2024 14 - - - 5 (of 6) -
to 13/07/2025
Gregory Colgan 17 - - - 5 (of 5) -
Claire Cunningham To 11/12/2024 3 (of 3) - - 1 (of 1) - -
Kim Dale From 01/08/2024 4 (of 4) - 2 (of 2) - - -
Mike Ferguson To 31/07/2025 18 5 - - - -
Marcus Flucker From 01/08/2024 15 - 4 - - -
Iain Gillespie To 05/12/2024 2 (of 3) 1 (of 1) 1 (of 1) - - 0 (of 0)
Keith Harris, Rector [2] N/A - - - - - -
Andrew Lothian To 31/07/2025 9 - - - 1 -
Ian Mair From 01/08/2024 16 - 3 4 - -
Claire Martin From 12/11/2024 16 (of 17) - - 3 (of 3) - 1 (of 1)
Linda Martindale To 10/08/2025 17 - - - - -
Ron Mobed 17 3 - - - 2
Andy Mohan From 11/04/2025 6 (of 8) - - - - -
Anna Notaro To 31/07/2025 15 - 3 - - -
Shane O’Neill From 05/12/2024 11 (of 13) 4 (of 4) 3 (of 3) - - 2 (of 2)
to 19/06/2025
Carla Rossini To 19/06/2025 9 (of 15) 5 - - 1 -
Amina Shah 15 - 4 - 2 (of 3) -
Karthik Subramanya To 31/07/2025 13 - - 5 - -
Jay Surti 18 - - 5 - 3
Sharon Sweeney To 31/07/2025 101 - 3 - - 2
Garry Taylor To 19/06/2025 14 (of 15) 4 - - - 3
Susan Walker To 30/09/2024 1 (of 1) - - - 0 (of 1) -
----- End of picture text -----

*Lay Members

25

University of Dundee

Court and Committee Membership 2025/26

Since the emergence of the University’s crisis, membership of Court has changed significantly with the majority of the members listed above now having stood down. The following table lists members of Court in 2025/26.

----- Start of picture text -----
Effective Start Court F&PC G&NC PODCo A&RC R
Name Position
Date
Alan Bainbridge Lay Member 01/08/2018 X X X
Amina Shah Lay Member 01/08/2023 X X X
Andrea Mohan Elected by Senate 11/04/2025 X X
Andrew Swift Lay Member 01/08/2025 X X X
Annie Ingram Lay Member 01/08/2025 X X X X
Carlo Morelli Elected by Trade Union 01/08/2025 X X
Claire Martin Elected by Staff Council 01/08/2024 X X X
Emma Preston Elected by Trade Union 01/08/2025 X X
Esther Roberton Chair 01/12/2025 X X X
Greg Colgan Nominated by Dundee City 01/08/2022 X
Council Executive
Ian Mair Lay Member 01/08/2024 X X X
Irene Wilson Lay Member 01/08/2025 X X
Jay Surti Lay Member 01/08/2018 X X X
Maggie Chapman Rector 01/08/2025 X X X
Marcus Flucker Independent 01/08/2024 X X X
Student Member
Margo Williamson Lay Member 01/08/2025 X X
Martine van Ittersum Elected by Senate 01/08/2025 X X
Nicholas Buckworth Lay Member 01/08/2025 X X
Nigel Seaton Interim Principal 20/06/2025 X X
Noel Lawlor Lay Member 01/08/2025 X X
Ron Mobed Lay Member 01/08/2020 X X X
Nicola Gray Elected by Senate 01/02/2026 X
to 30/04/2026
Susan Kinnear Elected by Senate 01/08/2025 X X
Tánaiste Custance President, Students' 01/08/2025 X X
Association
----- End of picture text -----

Going Concern

The University’s cash flows and liquidity in the period are set out in the Financial Statements and factors affecting future performance are set out in the Financial Review. As noted throughout this report, there were significant and pervasive internal control weaknesses at the University of Dundee in 2023/24 and these are highlighted in the Gillies Report. In response, the University has developed a detailed University Action Plan which sets out actions and timelines for improvement to governance.

dundee.ac.uk/strategy-recovery/gillies-report/actions-gillies-report

Overall, Court is of the view that robust governance arrangements have been put in place as a result of the Action Plan and that the University has adequate resources to continue operation until 31 July 2027, the going concern period. This is considered in detail in Accounting Policies, including the material uncertainty that will continue until further cost reduction actions are implemented.

26

Financial Statements 2023/24

Prior to the publication of the Gillies Report the Convener of the Finance & Policy Committee was invited to attend meetings of the Audit & Risk Committee and a reciprocal arrangement was in place for the Convener of the Audit & Risk Committee to attend meetings of the Finance & Policy Committee. This practice was discontinued in 2025.

1 The Audit and Risk Committee had one additional co-opted member in 2023/24 and 2024/25, who was not a member of Court: Irene Wilson.

2 In 2023/24 the Rector did not attend Court, with a Rector's Assessor attending in his place, in line with Statutes.

The Deputy Chair of Court is also invited to attend meetings of the Finance & Policy Committee.

Notes:

In addition to the major committees reported above, attendance of members of Court is also recorded for meetings of the Welfare and Ethical Use of Animals Committee, Endowments Sub-Committee and the Pensions Sub- Group.

F&PC = Finance & Policy Committee

G&NC = Governance & Nominations Committee

A&RC = Audit & Risk Committee RC = Remuneration Committee

PODCo = People & Organisational Development Committee

27

University of Dundee

Net Zero Strategies

The University is committed to delivering on Scotland’s climate change and sustainability agenda and had been working on our Net Zero Strategy to 2045. Since the University’s crisis emerged, and in the current context of ongoing uncertainty around strategy and financial sustainability, expenditure limitations have hampered the scale of direct action that can be taken by the University to address progress towards a Net Zero Strategy to 2045. This is an area which will be reprioritised as the University returns to stability, and as a new institutional Strategy to 2032 is developed.

In 2023/24 we had a Carbon Management Steering Group that had clear goals and was establishing a process to better understand and manage the data to ensure our actions were measurable. We had established a network of Sustainability Champions across the University, who met regularly to discuss new ideas and approaches at a grass roots level to reduce

our carbon footprint; and our Estates & Campus Services were active in work to reduce our energy need, working within the local partnership to create change for the region. This group has not met since the crisis emerged.

In 2023, we had been recent signatories to the Concordat for the Environmental Sustainability of Research and Innovation Practice and we continue to take active steps with colleagues in the School of Life Sciences to ensure our research activity conforms to best practice in this area through the Laboratory Assessment Efficiency Framework (LEAF).

Our endowment portfolio continues to be invested with a focus on sustainability. We have divested from fossil fuels, but in addition to that we only make investments where there is a clear alignment to the United Nations Sustainable Development Goals (UNSDG).

28

Financial Statements 2023/24

Appointment of a new Chancellor

The Rt Hon. Lord Robertson of Port Ellen KT was formally installed as the Chancellor of the University at our Graduation ceremonies in November 2023.

The role of Chancellor is the most senior in the University and involves acting as its ceremonial head, presiding over Academic Ceremonies and acting as President of the Graduates’ Association.

Lord (George) Robertson is an alumnus of the University, graduating in 1968 with an MA(Hons) Economics degree. He is also an Honorary Fellow of the Royal Society of Edinburgh (honFRSE).

He was Member of Parliament for Hamilton and then Hamilton South from 1978 -99 and joined the House of Lords in 1999. He became a member of Her Majesty's Privy Council in 1997.

He was the 10th Secretary General of NATO and Chairman of the North Atlantic Council from 1999 to 2003 and UK Secretary of State for Defence from 1997-1999. He was Shadow Secretary of State for Scotland in the Shadow Cabinet from 1992-1997 and Principal Opposition Spokesman on Europe from 1983-92. He was named Joint Parliamentarian of the Year in 1992.

The Role of University Chancellor

The Chancellor is the nominal head of the University, with ceremonial responsibilities including presiding at Graduations. The Chancellor helps to promote the University’s profile, and participates in staff, student, alumni and other events.

The Chancellor, Lord Robertson, appointed in November 2023, has been invaluable in supporting the University through the challenging period of crisis and has both supported and advocated for the sustainable future of the University as the University’s leadership has navigated though challenging times.

He is one of the sixteen Knights of the Thistle (KT), a Knight Grand Cross of the Order of St Michael and St George (GCMG), and among several high international honours received, he was awarded the highest American civilian honour, the Presidential Medal of Freedom in 2003.

Lord Robertson succeeded Dame Jocelyn Bell Burnell, who had served as Chancellor since 2018. Other previous Chancellors are HM The Queen Mother (1967-77), Lord Dalhousie (1977-92), Sir James Black (1992-2006), and Lord Patel (2006-2017).

29

Risks

How risks are managed

The Scottish Funding Council (SFC) requires all institutions to confirm they have an effective system of internal control. This includes an ongoing process for identifying, evaluating and managing significant risks. In 2023/24 the University had a Risk Management Policy in place which aimed to:

The Gillies Report identified significant shortcomings in the University’s risk management, in particular non-compliance with section 1:4 of the Scottish Code which places a responsibility on governing bodies to be attentive to risks which could threaten the sustainability of the institution and ensure procedures are in place to identify and manage risk.

As part of the University Action Plan, action was taken in 2025 to strengthen risk management across the University to address these weaknesses. In 2023/24 ownership of risks in the Institutional Risk Register was distributed amongst UEG members and Professional Services Directorates. In 2025/26 all IRR risks are now owned by a UEG member. They are supported by the Risk and Resilience manager to assess risks and establish effective controls. Schools (now Faculties) and Professional Services have their own local risk registers in place to ensure risks are identified, managed and escalated to the Institutional Risk Register as needed. The new Risk Assurance Group is responsible for ensuring the effectiveness of operational risk management in Schools and Directorates, replacing the Risk Management Oversight Group that was in operation in 2023/24.

An interim update to the Risk Management Policy was approved by the University Court in May 2025, with more fundamental development undertaken subsequently. This has involved:

30

Financial Statements 2023/24

Identified key risks 2023/24

We acknowledge the issues raised in the Gillies Report around governance and management of risk, and recognise there were limitations in the identification and scrutiny of risk by UEG and Court during the financial year 2023/24.

The Gillies Report highlighted significant optimism bias in student recruitment targets, a failure to recognise that material cost savings were not deliverable, the collapse in revenue at the beginning of the 2024/25 financial year, which resulted from the international student recruitment crisis, the impact of Brexit and other external factors. In tandem, there was a complete breakdown in cash management and expenditure control at the senior level of the organisation. Staff costs spiralled, the student-to-staff ratio fell, and operating costs grew by 43%, the Exscientia funds intended for future strategic investment were spent in full and banking covenants breached. The University’s risk framework at the time did not sufficiently highlight these issues until they had crystallised.

The situation was exacerbated by a lack of independent challenge around strategic financial decisions. Furthermore, members of the University Executive Group (UEG) were focused on their own portfolios, with limited cross-functional financial accountability.

The table below lists key risks identified in 2023/24 with an update on mitigations in place at the time of writing (in 2026). It should be noted that a new Risk Register has been developed which is awaiting final approval in spring 2026.

----- Start of picture text -----
Risk area Risk description (2023/24) Risk management and current mitigation of 2023/24 risks
Financial Failure to achieve financial → A recovery plan is now being implemented
Sustainability sustainability → Consideration and implementation of cost saving measures
→ Budgetary control is exercised by Court through the Finance & Policy
Committee, and by the University Executive Group
Cybersecurity Failure in controls and recovery → Cybersecurity team in place to address potential vulnerabilities and plan
plans in the event of a cyber- for threats
related incident
→ Training in place for all staff
Student A decline in the quality of the → There is student representation on all the major University committees
experience student experience could and a formal Student Experience Oversight Group monitors all aspects
adversely affect the University’s of student experience
reputation with a consequent
→
There is a formal partnership agreement between the University and
reduction in student recruitment
Dundee University Students’ Association
→ Portfolio plans are in place to ensure an attractive offering
Staff Inability to attract, retain or → The People & Organisational Development Committee focuses
experience develop staff could result in a loss on staff issues
in performance in key areas
→
Investment in Athena Swan and other equality and diversity and inclusion
measures
→ People & Talent Strategy
→ Local Joint Committee in place and regular meetings with the campus
trade unions to discuss key issues
Research A reduction in the quality of → Research Review measures research quality and provides data for strategic
excellence research could adversely affect management of research activity
the University’s reputation and → Recruitment focuses on research excellence
could lead to a loss of staff and
students
----- End of picture text -----

31

University of Dundee

Independent Auditor’s Report to the University Court of the University of Dundee

Opinion

We have audited the financial statements of the University of Dundee (‘the University'/ 'the Institution’) and its subsidiaries (‘Consolidated'/'the Group’) for the year ended 31 July 2024 which comprise Consolidated and Institution Statement of Comprehensive Income, Consolidated and Institution Statement of Changes in Reserves, Consolidated and Institution Statement of Financial Position, Consolidated Statement of Cash Flows 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting standard applicable in the UK and Republic of Ireland”.

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 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.

Material uncertainty relating to going concern

We draw attention to the Statement of Principal Accounting Policies (1. Basis of preparation, going concern) in the financial statements, which describes the current status of the University’s Recovery Plan, and its reliance upon exceptional Section 25 funding from the Scottish Funding Council (SFC).

As stated in the Statement of Principal Accounting Policies, these events or conditions, along with the other matters as set forth in the Statement of Principal Accounting Policies, indicate that a material uncertainty exists that may cast significant doubt on the Institution and Group’s ability to continue as a going concern.

The financial scenario planning and stress testing undertaken by the University highlights that significant cost reductions, beyond those achieved to date, are required to be delivered within the going concern period to 31 July 2027. The delivery of these measures remains subject to both approval and execution risk.

The University Court’s assessment of going concern is also dependent on the SFC and Scottish Government’s assessment of the University’s continued compliance with the conditions attached to the Section 25 funding, including implementation of the agreed Strategy to Recovery. Should the University be determined to not meet these conditions, any resultant changes to the agreed profile of Section 25 funding payments may adversely impact the University’s liquidity.

In auditing the financial statements, we have concluded that the University Court’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our opinion is not modified in respect of this matter.

Our responsibilities and the responsibilities of the University Court with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Group’s ability to continue as a going concern.

Other information

The other information comprises the information included in the Reports and Financial Statements other than the financial statements and our auditor’s report thereon. The University Court is responsible for the other information contained in the Financial Statements.

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.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine

32

Financial Statements 2023/24

whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Scottish Funding Council’s (SFC) Financial Memorandum

In accordance with the SFC’s Financial Memorandum (effective 1 December 2014), we will also report to the University Court whether, in all material respects

Qualified opinion on compliance with the SFC’s Financial Memorandum

The SFC’s Financial Memorandum requires the governing body to comply with the principles of good governance set out in the 2023 Scottish Code of Good HE Governance (“the Scottish Code”). The Financial Memorandum also requires the governing body to ensure that the Institution has regular, timely, accurate and adequate information to monitor performance and account for the use of public funds.

Disclosures made by interim and permanent management in post since November 2024, subsequent independent reviews commissioned by the University and our audit work identified instances of procurement irregularities, where the process for awarding contracts did not comply with the Public Contracts (Scotland) Regulations 2015 or the Procurement (Scotland) Regulations 2016.

In addition, as set out in the Governance Statement on page 18, the University has stated they cannot provide confirmation that all areas of non-compliance with the requirements of the SFC Financial Memorandum, including procurement irregularities, outlined above have been identified and disclosed in the Governance Statement, as those individuals were not in post during the 2023/24 financial year.

Consequently, as we are unable to satisfy ourselves on the completeness of disclosures in relation to non-compliance with the SFC’s Financial Memorandum, there is also the potential for relevant disclosures around these matters to be incomplete.

Therefore, we were unable to determine whether, in all material respects, the University has complied with the requirements

of the SFC Financial Memorandum with Higher Education Institutions.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of the University Court

As explained more fully in the Statement of Responsibilities set out on page 20, the University Court is responsible for the preparation of the financial statements and for being satisfied that give a true and fair view, and for such internal control as the University Court determines 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 University Court is responsible for assessing the Group’s and the Institution’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 management either intends to liquidate the Group or the Institution or to cease operations, or has 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 report in accordance with the Act 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

33

University of Dundee

Independent Auditor’s Report to the University Court of the University of Dundee

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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, subject to the qualification on application of funds provided by the SFC, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. Given the matters raised above, there is a greater risk of irregularities and instances of non-compliance with laws and regulations.

was susceptibility to fraud. We also considered performance targets and their influence on efforts made by management to manage financial performance. Where this risk was considered higher, we performed audit procedures to address the risk of fraud and management override. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

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

Use of our report

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

Ernst & Young LLP, Statutory Auditor

London

30 June 2026

34

Financial Statements 2023124

University of Dundee

36

Financial Statements 2023/24

Year ended 31 July 2024

37

University of Dundee

Consolidated and Institution Statement of Comprehensive Income

Year ended 31 July 2024

Year ended 31 July 2024 Year ended 31 July 2023
Notes Consolidated Institution Consolidated Institution
£000 £000 £000 £000
Income
Scottish funding council grants 1 86,326 86,326 86,731 86,731
Tuition fees and education contracts 2 115,525 115,525 117,589 117,589
Research grants and contracts 3 71,201 71,201 78,916 78,916
Other income 4 41,891 41,557 37,324 36,872
Investment income 5 1,708 1,810 1,682 1,771
Donations and endowments 6 8,468 8,468 3,468 3,468
Total income 325,119 324,887 325,710 325,347
Expenditure
Staff costs excluding movement on USS pension provision 7 183,000 182,526 174,432 173,963
Staff costs - movement on USS pension provision 7 (82,163) (82,163) (12,230) (12,230)
Other operating expenses 8 128,265 129,041 130,803 131,301
Depreciation and amortisation 12, 13 20,438 20,282 23,049 22,892
Interest and other finance costs 9 3,924 3,924 4,868 4,868
Total expenditure 253,464 253,610 320,922 320,794
Surplus before other gains and losses 71,655 71,277 4,788 4,553
Gain on disposal of tangible assets - - 7 7
(Loss)/gain on disposal of investments (17) (17) 215 215
Gain/(loss) on investments 2,454 2,454 (52) (52)
Share of (loss)/profit in associate 21 (766) - 161 -
Surplus before tax 73,326 73,714 5,119 4,723
Taxation 10 - - - -
Surplus for the year 73,326 73,714 5,119 4,723
Remeasurement ofpension scheme liabilit 32 7,845 7,845 6,624 6,624
Total comprehensive income for theyear 81,171 81,559 11,743 11,347
Represented by:
Endowment comprehensive income for the year 2,784 2,784 498 498
Restricted comprehensive income for the year 223 224 308 309
Unrestricted comprehensive income for theyear 78,930 78,551 10,776 10,540
Attributable to the Institution 81,937 81,559 11,582 11,347
Attributable to the Associate (766) - 161 -
81,171 81,559 11,743 11,347
Surplus/(deficit) for the year attributable to:
Associate (766) - 161 -
Institution 74,092 73,714 4,958 4,723

All items of income and expenditure relate to continuing activities. The accompanying notes and policies on pages 43 to 85 form part of these financial statements.

38

Financial Statements 2023/24

Consolidated and Institution Statement of Changes in Reserves

Year ended 31 July 2024

Consolidated Income and expenditure reserve expenditure reserve
Endowment Restricted Unrestricted Total excluding Associate Total
Associate
£000 £000 £000 £000 £000 £000
Balance at 1 August 2022 33,937
439		 151,149 185,525 (6,053) 179,472
Surplus from the income
and expenditure statement		 1,485
1,655		 1,818 4,958 161 5,119
Other comprehensive income -
-		 6,624 6,624 - 6,624
Other reserve movements -
-		 - - 45 45
Release of restricted funds spent inyear (987) (1,347) 2,334 - - -
Total comprehensive income for theyear 498
308		 10,776 11,582 206 11,788
Balance at 1 August 2023 34,435
747		 161,925 197,107 (5,847) 191,260
Surplus/(deficit) from the income
and expenditure statement		 4,253 6,287 63,552 74,092 (766) 73,326
Other comprehensive income -
-		 7,845 7,845 - 7,845
Other reserve movements -
-		 - - (8) (8)
Release of restricted funds spent inyear (1,469) (6,064) 7,533 - - -
Total comprehensive income for theyear 2,784 223 78,930 81,937 (774) 81,163
Balance at 31 July 2024 37,219 970 240,855 279,044 (6,621) 272,423
Institution Income and expenditure reserve
Endowment Restricted Unrestricted Total excluding Associate Total
Associate
£000 £000 £000 £000 £000 £000
Balance at 1 August 2022 33,937
435		 150,856 185,228 - 185,228
Surplus/(deficit) from the income
and expenditure statement		 1,485
1,656		 1,582 4,723 - 4,723
Other comprehensive income -
-		 6,624 6,624 - 6,624
Other reserve movements -
-		 - - - -
Release of restricted funds spent inyear (987) (1,347) 2,334 - - -
Total comprehensive income for theyear 498
309		 10,540 11,347 - 11,347
Balance at 1 August 2023 34,435
744		 161,396 196,575 - 196,575
Surplus from the income
and expenditure statement		 4,253 6,288 63,173 73,714 - 73,714
Other comprehensive income -
-		 7,845 7,845 - 7,845
Other reserve movements -
-		 - - - -
Release of restricted funds spent in year (1,469) (6,064) 7,533 - - -
Total comprehensive income for the year 2,784
224		 78,551 81,559 - 81,559
Balance at 31 July 2024 37,219
968		 239,947 278,134 - 278,134

39

University of Dundee

Consolidated and Institution Statement of Financial Position

Year ended 31 July 2024

As at 31 July 2024 As at 31 July 2023 As at 31 July 2023
Notes Consolidated Institution Consolidated Institution
£000 £000 £000 £000
Non-current assets
Intangible assets 12 5,183 5,183 6,971 6,971
Tangible assets 13 312,228 309,858 287,090 284,565
Investments 15 34,886 34,767 32,079 32,079
352,297 349,808 326,140 323,615
Current assets
Stock 313 313 310 310
Trade and other receivables 16 50,745 51,997 55,605 57,083
Cash and cash equivalents 17 32,391 32,331 74,432 74,354
83,449 84,641 130,347 131,747
Less: Creditors: amounts falling due within one year 19 (113,876) (113,482) (121,264) (120,672)
Net current (liabilities)/assets (30,427) (28,841) 9,083 11,075
Total assets less current assets/(liabilities) 321,870 320,967 335,223 334,690
Creditors: amounts falling due after more than one year 20 (11,315) (11,315) (12,670) (12,670)
Provisions
Pension provisions 21 (31,204) (31,204) (124,900) (124,900)
Other provisions including share of net liabilities in associate 21 (6,928) (314) (6,393) (545)
Total net assets 272,423 278,134 191,260 196,575
Restricted Reserves
Income and expenditure reserve – endowment reserve 22 37,219 37,219 34,435 34,435
Income and expenditure reserve – restricted reserve 23 970 968 747 744
Unrestricted Reserves
Income and expenditure reserve – unrestricted 240,855 239,947 161,925 161,396
Attributable to the Institution 279,044 278,134 197,107 196,575
Attributable to the Associate (6,621) - (5,847) -
Total Reserves 272,423 278,134 191,260 196,575

40

Financial Statements 2023/24

Consolidated and Institution Statement of Financial Position

Year ended 31 July 2024

The financial statements, including the accompanying notes and policies on pages 43 to 85, were approved by the Court on 9 June 2026 and were signed on its behalf on 26 June 2026 by:

Esther Roberton Chair of Court

Professor Nigel Seaton Interim Principal and Vice-Chancellor

Lee Hamill Chief Finance Officer

41

University of Dundee

Consolidated Statement of Cash Flows

Year ended 31 July 2024

Year ended 31 July 2024
Year ended 31 July 2024 Year ended 31 July 2023
Consolidated Consolidated
Notes £000 £000
Cash flow from operating activities
Surplus for the year 73,326 5,119
Adjustment for non-cash items
Depreciation 18,233 21,769
Amortisation of intangible assets 2,205 1,280
(Gain)/loss on endowments and investments (2,454) 52
(Increase) in stock (3) (100)
Decrease/(increase) in debtors 4,860 (14,673)
(Decrease)/increase in creditors (7,627) 6,943
(Decrease)/increase in other provisions (231) 14
(Decrease) in pension provisions (221) (144)
Pension cost less contributions payable (89,361) (18,076)
Share of operating loss/(gain) in associate 766 (161)
Adjustment for investing or financing activities
Investment income (1,708) (1,682)
Interest payable 3,924 4,868
Endowment income (610) (671)
Gain on sale of fixed assets - (7)
Loss/(gain) on sale of investments 17 (215)
Capital Grant Income (18,231) (3,901)
Net cash flows from operating activities (17,115) 415
Cash flows from investing activities
Proceeds from sale of fixed assets - 52
Proceeds from sales of investments 88 215
Capital grants receipts 6 18,231 3,901
Disposal of non-current asset investments 33,100 7,438
Investment income 5 1,708 1,682
Endowment funds invested 6 (610) (671)
Withdrawal of deposits 610 671
Payments made to acquire fixed assets 13 (43,371) (30,380)
Payments made to acquire intangible assets 12 (417) (942)
New non-current asset investments 15 (33,558) (7,070)
Total cash flows from investing activities (24,219) (25,104)
Cash flows from financing activities
Interest paid 9 (193) (196)
Interest element of finance lease 9 - -
New endowments 610 671
New unsecured loans 20 - -
Repayments of amounts borrowed 20 (1,124) (1,227)
Capital element of finance lease - -
Total cash flows from financing activities (707) (752)
(Decrease) in cash and cash equivalents in theyear (42,041) (25,441)
Cash and cash equivalents at beginning of the year 17 74,432 99,873
Cash and cash equivalents at end of the year 17 32,391 74,432

42

Financial Statements 2023/24

Statement of Principal Accounting Policies

Year ended 31 July 2024

1. Basis of preparation

The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education 2019 and in accordance with applicable Financial Reporting Standards in the United Kingdom.

The Institution is a public benefit entity and therefore has applied the relevant public benefit requirement of FRS 102. The financial statements have also been prepared in accordance with the Accounts Direction issued by the Scottish Funding Council.

The financial statements are prepared in accordance with the historical cost convention (modified by the revaluation of fixed assets and derivative financial instruments).

The forecast includes a base case scenario with assumptions reflecting:

Going concern

These financial statements have been prepared on a going concern basis for the University and Group. The Going Concern Assessment considers the period to 31 July 2027.

Although the University is reporting a surplus before other gains and share of operating loss in associate of £71.7m in 2023/24, the underlying operating position presents a different picture. The 2023/24 reported surplus includes a number of non-recurrent items which are excluded when considering the underlying financial operating position, including Tay Cities capital grants of £5.1m, asset impairment of £0.9m and a £80.3m credit due to the release of the provision for the USS pension scheme. Adjusting for non-recurrent items, the University is reporting an operating deficit of £12.8m in 2023/24.

In November 2024 the University publicly announced it was in an extremely challenging financial position, both in terms of its forecast operating position and also its cash and liquidity position, with significant deficits forecast for 2024/25 and subsequent years. The University breached covenants associated with its £40m Revolving Credit Facility, thereby removing access to this facility.

From December 2024 to the date of approval of these Financial Statements a number of events and actions have impacted on the ongoing financial position and the timeline for cost reduction actions, as detailed in Note 27 Events after the Reporting Period and the University’s crisis section on page 6.

In January 2026 the University prepared an updated forecast for financial years 2025/26 to 2029/30 with revised income projections together with cost reductions to put the University on a path to financial sustainability. The forecasts include a number of scenarios which form the basis of the University Court’s assessment of going concern. The Going Concern Assessment has been reviewed and updated up to the date of the approval of these financial statements and is based on the period of this forecast to 31 July 2027.

A key judgement underpinning the going concern assessment is that further significant cost reductions, over and above those savings derived from the second VS scheme, in the region of £20m-£25m will be required to achieve an EBITDA in the range of 8% to 10% by 2027/28. In the going concern period to 31 July 2027 these further savings drive a net cash improvement of £6.8m (net of cost of change).

The entirety of the University’s cost base must be considered for reduction and as staff costs constitute the majority of operational spend the bulk of further savings will need to come from staff costs. The going concern forecast assumes that action to implement these further cost savings will begin in the second quarter of the 2026 calendar year, subject to approval by Court and working within the parameters of the Scottish Funding

43

University of Dundee

Statement of Principal Accounting Policies

Year ended 31 July 2024

Council conditions of grant for the Section 25 funding. Achieving these savings will require significant change and transformation in the University’s operations.

While the University Court will also look to improve revenue growth it should be noted that in order to achieve an equivalent net cash improvement of the same level, i.e £20m-£25m, income growth of £50m-£60m, or 15%-20%, by 2027/28 would be required, based on average margins. This level of income growth is considered to be well beyond what is feasible for the University in the current market and, therefore, well beyond what could be considered appropriate for a going concern assessment.

A key assumption in this financial forecast is that the financial support package publicly announced by the Scottish Government for the University is received in full. This includes:

Full ongoing compliance with the published Conditions of Grant for the £40m Section 25 funding will be required for the future funding to be received. At the time of approving these Financial Statements all Conditions had been met, including submission to the Scottish Funding Council of a Strategy to Recovery by the end of June 2026. On 12 June 2026 the Scottish Funding Council confirmed in writing to the University’s Chair of Court that the SFC Board had considered the Strategy to Recovery and determined that it was compliant with the Conditions of Grant, but noted that it will continue to closely monitor the implementation of the strategy and will require the University to provide it with the Key Performance Indicators detailed in those conditions. The Conditions remain in place for the duration of the funding period to 31 July 2027, and the subsequent 6 months after this date, and therefore the key assumption that the full Scottish Government financial support package will be received is subject to the Scottish Funding Council’s and Scottish Government’s ongoing monitoring and assessment of compliance with the conditions.

The forecasts indicate that, with this financial support package in place and no further commercial or government financing, the University will have sufficient liquidity to continue to operate and

meet its financial obligations over the going concern period to 31 July 2027.

However, a material uncertainty exists which casts significant doubt in relation to the University’s ability to continue as a going concern in the period after 31 July 2027 arising from the requirement to deliver further cost reductions of £20m–£25m, which remain subject to approval and execution risk and if not delivered will result in significant liquidity challenges.

In addition, while the SFC confirmed compliance with the Strategy to Recovery on 12 June 2026, there is a need to maintain compliance with the conditions attached to the Section 25 funding from the date of approval of these financial statements until conditions end 6 months after the end of the Section 25 funding period (31 July 2027). Until the Scottish Funding Council has confirmed that the conditions are completely discharged 6 months after the end of the Section 25 funding period there is a material uncertainty which casts significant doubt in relation to the University’s ability to continue as a going concern if the conditions are not met.

The forecast operating deficit in 2026/27 is £(1.0)m with cash at 31 July 2027 forecast at £37.7m, with a minimum cash balance of £25.6m across the 2026/27 financial year. The University has set a minimum cash balance target of £30m. Although forecast cash would fall below this during 2026/27 this represents a short-term pressure which management believes can be managed through standard treasury management actions.

The University Court has considered a number of risks and the potential impacts of these risks in producing its financial plans and forecasts. The University is closely monitoring compliance with the Conditions associated with the Section 25 funding.

In addition to the base scenario, a downside scenario has been prepared. The downside scenario reflects severe but plausible adverse movements and tests the resilience of the University’s financial position before mitigating actions and considers the impact of:

44

Financial Statements 2023/24

Forecast cash balances for this downside scenario, although challenging with a minimum cash balance of £20.5m in 2026/27, before mitigations, indicate that the University would have sufficient resources to continue to operate and meet its essential financial obligations over the period to 31 July 2027. Although forecast cash during 2026/27 would fall below the £30m minimum cash target set by the University this represents a short-term pressure which management expects can be managed through standard treasury management actions and delaying commitments to material items of expenditure.

If a severe downside scenario does occur, management has identified a range of further mitigating actions depending on the severity of the situation. These include:

Forecasts will be closely monitored and reported to management and Court committees through monthly management accounts.

The University is experiencing a period of considerable change with significant restructuring activity and realigning the cost base with the expected future income streams and available funding linked to the requirements and guidelines established by the Scottish Funding Council. The forecast is dependent on the successful delivery of further cost reductions of £20m–£25m, which have not yet been fully implemented and remain subject to approval and execution risk. In addition, the forecast assumes ongoing compliance with the conditions attached to the Section 25 funding, including implementation of the agreed Strategy to Recovery. The ability to deliver the planned Strategy to Recovery and meet the conditions of Section 25 funding therefore represent a material uncertainty that may cast significant doubt over the ability of the University to continue as a going concern.

Whilst the University Court recognises these uncertainties, it has reviewed these forecasts and is satisfied that the University will

have sufficient funds, the University plans are achievable and appropriate mitigations are in place to meet its liabilities as they fall due over the period to 31 July 2027. Accordingly, the financial statements have been prepared on a going concern basis.

2. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Institution and its subsidiary undertakings for the financial year to 31 July 2024. The results of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the date of acquisition or up to the date of disposal. Intra-group transactions are eliminated on consolidation.

Entities, other than subsidiaries, in which the Group has a participating interest and over who’s operating and financial policies the Group exercises a significant influence are treated as associates. In the consolidated Financial Statements, associated companies and joint ventures are accounted for using the equity method, including the appropriate share of the results and reserves of each associate. The Consolidated Statement of Comprehensive Income and Expenditure includes the Group’s share of the profit or loss of Dundee Student Villages (DSV), an associated undertaking, and the consolidated balance sheet similarly includes the Group’s share of the net assets or liabilities of DSV.

3. Income recognition

Grant funding including Scottish Funding Council grants, research grants from government sources and grants (including research grants) from non-government sources are recognised as income when the Institution is entitled to income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the balance sheet and released to income as the conditions are met.

Fee income is stated gross of any expenditure which is not a discount and credited to the Consolidated Statement of Comprehensive Income and Expenditure over the period in which the students are studying. Where the amount of the tuition fee is reduced by a discount for prompt payment, income receivable is shown net of the discount. Bursaries and scholarships are not deducted from income.

Funds the Institution receives and disburses as paying agent on behalf of a funding body are excluded from the income and expenditure of the Institution where the Institution is exposed to minimal risk or enjoys minimal economic benefit related to the transaction.

Income from the sale of goods or services is credited to the Consolidated Statement of Comprehensive Income when the goods or services are supplied to the external customers against the order received or the terms of the contract have been satisfied.

45

University of Dundee

Statement of Principal Accounting Policies

Year ended 31 July 2024

Investment income is credited to the Consolidated Statement of Comprehensive Income on a receivable basis.

Donations and Endowments

Non exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised in income when the Institution is entitled to the funds. Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer.

Donations with no restrictions are recognised in income when the Institution is entitled to the funds.

Investment income and appreciation of endowments is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms or other restriction applied to the individual endowment fund.

The Institution participates in a number of other defined benefit pension schemes. Where the scheme is a multi-employer scheme and it is not possible to identify the University’s share of the underlying assets and liabilities, it is accounted for on a defined contribution basis and contributions are included in expenditure in the period in which they are payable.

The institution participates in Universities Superannuation Scheme. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The institution is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, the institution therefore accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the Statement of Comprehensive Income represents the contributions payable to the scheme.

There are four main types of donations and endowments identified within reserves:

1. Restricted donations – the donor has specified that the donation must be used for a particular objective.

2. Unrestricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income.

Defined Contribution Plan

A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the income statement in the periods during which services are rendered by employees.

3. Restricted expendable endowments – the donor has specified a particular objective other than the purchase or construction of tangible fixed assets, and the Institution has the power to use the capital.

4. Restricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream.

Capital grants

Capital grants are recognised in income when the Institution is entitled to the funds subject to any performance related conditions being met.

4. Accounting for retirement benefits

The principal pension schemes for the Institution’s staff are the Universities Superannuation Scheme (USS), the University of Dundee Superannuation and Life Assurance Scheme (UODS) (closed to new members from 31 December 2023) and University of Dundee Royal London Pension Scheme (RLPS). USS and UODS are or include defined benefit schemes and are valued every three years by professionally qualified independent actuaries. RLPS is a defined contribution scheme.

Defined Benefit Plan

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. Under defined benefit plans, the Institution’s obligation is to provide the agreed benefits to current and former employees, and actuarial risk (that benefits will cost more or less than expected) and investment risk (that returns on assets set aside to fund the benefits will differ from expectations) are borne, in substance, by the Institution. The Institution recognises a liability for its obligations under defined benefit plans net of plan assets. This net defined benefit liability is measured as the estimated amount of benefit that employees have earned in return for their service in the current and prior periods, discounted to determine its present value, less the fair value (at bid price) of plan assets. The calculation is performed by a qualified actuary using the projected unit credit method. Where the calculation results in a net asset, recognition of the asset is limited to the extent to which the Institution is able to recover the surplus either through reduced contributions in the future or through refunds from the plan.

46

Financial Statements 2023/24

Multi-employer Scheme

The institution participates in Universities Superannuation Scheme. The defined benefits section of USS is a multi-employer scheme. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The institution is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, the institution therefore accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the Statement of Comprehensive Income represents the contributions payable to the scheme.

Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the University. Any unused benefits are accrued and measured as the additional amount the University expects to pay as a result of the unused entitlement.

The University has a liability for the enhancement of pensions payable to some former members of staff who have taken early retirement. These liabilities are unfunded but are assessed on the same basis as the liabilities within each defined benefit pension scheme.

5. Finance leases

Leases in which the institution assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. Leased assets acquired by way of finance leases and the corresponding lease liabilities are initially recognised at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Expenditure on fixed assets acquired under finance leases and the related lease obligations is capitalised in so far as the costs exceed the Institution's capitalisation threshold.

7. Operating leases

Rental costs under operating leases are charged to expenditure in equal annual amounts over the periods of the leases

8. Foreign currency

Transactions denominated in foreign currencies are recorded at the rates of exchange ruling at the dates of the transactions, or at the rate ruling at the month end prior to the transaction taking place. Monetary assets and liabilities denominated in foreign currencies are translated into sterling either at month or year end rates or, where there are related forward foreign exchange contracts, at contract rates. The resulting exchange differences are dealt with in the determination of income and expenditure for the financial year.

9. Property, plant, and equipment

Land and buildings

Land and buildings are stated at deemed cost less accumulated depreciation. Donated land and buildings are stated at fair value at the date of receipt.

Costs incurred in relation to land and buildings after initial purchase or construction are capitalised to the extent that they increase the expected future benefits to the Institution from the existing tangible fixed asset beyond its previously assessed standard of performance; the costs of any such enhancements are added to the gross carrying amount of the tangible fixed asset concerned.

Depreciation

Land is not depreciated as it is considered to have an indefinite useful life.

The component items of buildings, and alterations and additions to buildings, are depreciated over their estimated useful lives on a straight line basis as follows:

Structure
Mechanical and electrical		 50 years
25 years
Fit-out 15 years

Assets in the course of construction are not depreciated until they are brought into use.

6. Service concession arrangements

Fixed assets held under service concession arrangements are recognised on the Balance Sheet at the present value of the minimum lease payments when the assets are brought into use with a corresponding financial liability.

Repairs and maintenance

Expenditure to ensure that a tangible fixed asset maintains its previously recognised standard of performance is recognised in the income and expenditure account in the period it is incurred. The Institution has a planned maintenance programme, which is reviewed on an annual basis.

47

University of Dundee

Statement of Principal Accounting Policies

Year ended 31 July 2024

Assets used by the Institution

The Institution occupies various premises owned by the NHS. The main locations are subject to service charges which are reflected in the income and expenditure account but are not subject to formal rentals. It is not possible to attribute value to these arrangements and hence these assets are not included in the financial statements.

11. Investments

Non-current asset investments are included in the balance sheet at fair value for investments in publicly traded shares or where the fair value can be measured reliably, with movements recognised in the surplus or deficit. Investments in unlisted spin-outs where no fair value can be established are listed at cost.

Assets held for resale

Assets for resale are land and buildings which are no longer in use by the Institution and which the Institution is committed to sell and not replace. These assets are valued at the lower of net book value and net realisable value and included in current assets.

Equipment

Equipment, including computers and software, costing less than £25,000 per individual item or group of related items is recognised as expenditure in the year of acquisition. All other items of equipment are capitalised and depreciated on a straight line basis over their expected useful lives as follows:

Plant 20 years Computer equipment 4 – 12 years Research equipment Shorter of 4 years or project life Other equipment 4 years

Investments in subsidiaries are carried at cost less impairment in the University’s balance sheet.

Investments in associates are shown in the consolidated balance sheet at attributable share of net assets.

Current asset investments are held at fair value with movements recognised in the Consolidated Statement of Comprehensive Income and Expenditure.

Interests in land and/or buildings held for their investment potential are included in the balance sheet at their market value without charging depreciation.

12. Stocks

Stocks comprise mainly building maintenance, catering and laboratory supplies, and are brought into the financial statements at the lower of cost and net realisable value. Where necessary, provision is made for obsolete, slow-moving and defective stocks.

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.

Borrowing costs

Borrowing costs which are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised.

13. Cash and cash equivalents

Cash includes cash in hand, sterling and foreign currency bank balances, deposits repayable on demand and overdrafts.

Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of change in value. Typically, they will have a maturity of less than three months.

Short-term deposits include deposits with recognised banks and building societies and government securities held as part of the University’s treasury management activities.

10. Intangible Assets

All intangible assets are considered to have finite lives which will be determined by the assessed useful economic life and the period of any contractual or legal rights (including any renewal periods where the cost of renewal is not significant). Costs are amortised over their useful economic life. Intangible assets in the course of development are not amortised until they are brought into use.

Subsequent to initial recognition, intangible assets are stated at cost less accumulated amortisation and accumulated impairment.

14. Provisions, contingent liabilities, and contingent assets

Provisions are recognised when:

48

Financial Statements 2023/24

The amount recognised as a provision is determined by discounting the expected future cash flows at a pre-tax rate that reflects risks specific to the liability.

The attributable share of net liabilities in associates is shown as a provision in the consolidated balance sheet.

A contingent liability arises from a past event that gives the University 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 University. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resource will be required or the amount of the obligation cannot be measured reliably.

A contingent asset arises where an event has taken place that gives the University 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 University.

Contingent assets and liabilities are not recognised in the Balance Sheet but are disclosed in the notes.

15. Taxation

The University is a charity within the meaning of part 1, chapter 2, section 7 of the Charities and Trustee Investment (Scotland) Act 2005, and is considered to pass the tests set out in paragraph 1, schedule 6, Finance Act 2010 and is recorded on the index of charities maintained by the Office of the Scottish Charity Regulator (Charity Number SC015096) and therefore it meets the definition of the charitable company for UK corporation tax purposes.

The University receives no similar exemption in respect of Value Added Tax (VAT). Irrecoverable VAT on inputs is included in the costs of such inputs. Any irrecoverable VAT allocated to tangible fixed assets is included in their cost.

16. Derivatives

Derivatives are held on the balance sheet at fair value with movements in fair value recorded in the Consolidated Statement of Comprehensive Income and Expenditure.

17. Reserves

Reserves are classified as restricted or unrestricted. Restricted endowment reserves include balances which, through endowment to the University, are held as a permanently restricted fund which the University must hold in perpetuity.

Other restricted reserves include balances where the donor has designated a specific purpose and therefore the University is restricted in the use of these funds.

18. Critical accounting estimates and judgements

The preparation of the Institution's financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income, and expenses. These judgements, 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. The resulting accounting estimates will, by definition, seldom equal the related actual results.

Key estimates and judgements are detailed at Note 33.

Due to the time that has elapsed between the end of reporting period and the date of signing these financial statements, a number of estimates have been updated to reflect the confirmed outcome. In addition, estimates have been reviewed and updated to reflect impacts of the University's challenging financial position, including impairment of capital works that are not proceeding.

The University’s subsidiaries, with the exception of the charitable company, University of Dundee Nursery Limited, are liable to Corporation Tax in the same way as any other commercial organisation.

Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements. Deferred tax assets are recognised to the extent that they are regarded as more likely than not that they will be recovered.

Deferred tax assets and liabilities are not discounted. Deferred taxation for subsidiaries is provided on the liability method on all timing differences which are expected to reverse in the future without being replaced, calculated at the rate at which it is estimated that taxation will be payable.

49

University of Dundee

Year ended 31 July 2024 continued

50

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

1.
2.
3.		 Year Ended 31 July 2024
Year Ended 31 July 2023
Consolidated
Institution
Consolidated
Institution
Notes
£000
£000
£000
£000
Scottish funding council grants
General fund – Teaching
61,997
61,997
61,418
61,418
General fund – Research and Innovation
20,526
20,526
21,501
21,501
Strategic Funding
1,317
1,317
511
511
Capital Funding
2,486
2,486
3,301
3,301
86,326
86,326
86,731
86,731
General fund - Teaching income includes ringfenced grants funded by the Scottish Government of £13,587k in 2023/24
(2022/23: £12,984k)
Tuition fees and education contracts
Home/EU domicile fees
21,430
21,430
22,938
22,938
RUK domicile fees
11,125
11,125
12,101
12,101
Non-EU domicile fees
77,972
77,972
77,559
77,559
Non-credit bearing course fees
532
532
651
651
Other contracts
4,466
4,466
4,340
4,340
115,525
115,525
117,589
117,589
Research grants and contracts
Research councils
20,139
20,139
20,108
20,108
UK charities
18,962
18,962
18,897
18,897
European commission
1,368
1,368
3,660
3,660
UK industry
3,396
3,396
3,174
3,174
Other grants and contracts
27,336
27,336
33,077
33,077
71,201
71,201
78,916
78,916

51

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

4.
5.
6.		 Year Ended 31 July 2024
Year Ended 31 July 2023
Consolidated
Institution
Consolidated
Institution
Notes
£000
£000
£000
£000
Other income
Residences, catering and conferences
11,272
11,272
10,786
10,786
Other services rendered
12,305
12,380
11,685
11,760
Health authorities
7,570
7,570
6,924
6,924
Other income
10,744
10,335
7,929
7,402
41,891
41,557
37,324
36,872
Investment income
Investment income on endowments
22
539
539
350
350
Other investment income
1,169
1,271
1,332
1,421
1,708
1,810
1,682
1,771
Donations and endowments
Capital grants
5,050
5,050
600
600
New endowments
22
610
610
671
671
Donations with restrictions
23
648
648
636
636
Other income with restrictions
23
589
589
420
420
Unrestricted donations
1,571
1,571
1,141
1,141
8,468
8,468
3,468
3,468

52

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

7. Year Ended 31 July 2024
Year Ended 31 July 2023
Consolidated
Institution
Consolidated
Institution
Notes
£000
£000
£000
£000
Staff costs
Staff costs:
Wages and salaries
146,392
146,007
134,205
133,836
Social securit costs
14,734
14,709
13,606
13,581
Movement on USS provision
(82,163)
(82,163)
(12,230)
(12,230)
Other pension costs
32
21,874
21,810
25,666
25,591
Sub-total
100,837
100,363
161,247
160,778
Restructuring costs
-
-
955
955
Total
100,837
100,363
162,202
161,733

A further breakdown of pension costs has been included in note 32.

Staff costs by major category:

Staff costs by major category:
Academic departments 100,342 100,342 92,196 92,197
Academic services 15,320 15,320 14,552 14,552
Research grants and contracts 33,459 33,459 33,908 33,908
Administration and central services 25,901 25,427 23,545 23,075
Premises 5,468 5,468 5,096 5,096
Other 1,883 1,883 3,645 3,645
Catering and residences 627 627 535 535
Sub-total before movement on USS Provision 183,000 182,526 173,477 173,008
Movement on USS provision (82,163) (82,163) (12,230) (12,230)
Total before restructuring costs 100,837 100,363 161,247 160,778
Restructuring costs - - 955 955
Total 100,837 100,363 162,202 161,733

Due to the material impact of the release of the USS provision in 2023/24 the movement on the USS provision has been shown separately in the table above.

The staff costs of key management personnel are shown below. Full-time equivalent (FTE) across the year 2023/24 are also shown noting this FTE is reported on the same basis as the overall University staff numbers reported in this note.

Key management personnel are the University’s Executive Group (UEG) and comprise the salary cost of UEG members in post, including any payment in lieu of notice or severance costs, and excluding employer’s pension contributions. In 2023/24 a payment of £67,500 was made to one UEG member including severance costs and payment in lieu of notice.

Staff costs of key management personnel £000 1,783 1,221
FTE 10.3 6.9

53

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

7. Staff costs – continued

Total remuneration of the Principal and Vice-Chancellor/Accountable Officer:

2023/24 2022/23
£000 £000
Professor Iain Gillespie (from 1 January 2021)
Annual salary 298 259
Bonus - -
Taxable benefits in kind 2 1
Non-taxable benefits in kind - -
Pension contributions to USS 51 56
Supplement in lieu of employers' pension contributions - -
Total 351 316

The emoluments of the Principal are shown on the same basis as that for higher paid staff. The Principal's remuneration is approved by the Remuneration Committee.

As noted in the tables above, the emoluments of Professor Iain Gillespie include a taxable benefit in kind. These benefits in kind arise from rental of a residential property. All rentals in relation to this property are charged at an externally verified commercial market rate, however HMRC guidance requires the assessment of the deemed value based on a specified computation, this has resulted in an unintentional taxable benefit of kind.

Professor Iain Gillespie was appointed Principal and Vice-Chancellor on 1 January 2021 and his employment ended by mutual agreement on 5 December 2024. The terms of his departure were approved by the Remuneration Committee, and the payments made on termination were in accordance with the University’s published severance policy.

Professor Gillespie received £152,421.00 gross in respect of his contractual entitlement to six months’ notice (minus invoices recovered in relation to University House bills). The University also contributed £500 plus VAT, where applicable, towards the cost of independent legal advice in connection with the settlement agreement, in line with standard practice. Save for that legal-fee contribution, no ex-gratia or non-contractual severance payment was made.

Professor Shane O’Neill was appointed as Interim Principal and Vice-Chancellor on 10 December 2024. Following discussion with the University’s Deputy Chair of Court, Acting Chair of Court and Director of People on 18 June 2025, the University understood Professor O’Neill to have intimated his intention to resign from his employment with the University. The University treated 18 June 2025 as the commencement of Professor O’Neill’s six-month contractual notice period.

Professor O’Neill’s employment was terminated by the University on 3 December 2025. Professor O’Neill received his normal salary and associated contractual benefits, including pension contributions, from 18 June 2025 to 30 November 2025, amounting to £100,184.56 gross comprising salary payments of £87,497.44 and employer pension contributions of £12,687.12. Professor O’Neill was also paid £11,335.12 gross including employer pension contributions (salary payment of £9,810.92 and employer pension contributions of £1,524.20) as a payment in lieu of notice in respect of the remaining period from 1 December 2025 to 18 December 2025, together with £30,218.13 gross in respect of untaken annual leave accrued up to 3 December 2025. The terms of Professor O’Neill’s departure and associated payments were approved by the Remuneration Committee. No ex-gratia or non-contractual severance payment was made.

For 2023/24 the pay multiple of the Principal, Professor Iain Gillespie, to the median earnings of the whole workforce is 7.2 (2023: 7.2) based on total remuneration including salary, bonus, employer pension contribution, payments in lieu of pension contributions, taxable and non–taxable benefits. The median is based on the annualised, full-time equivalent remuneration of all staff at the reporting date.

54

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

7. Staff costs – continued

The number of staff with a basic salary of over £100,000 per annum has been included below. Payments made on behalf of the NHS in respect of its contractual obligations to Institution staff under separate NHS contracts of employment are not included within remuneration.

included within remuneration.
31/07/2024 31/07/2024 31/07/2023 31/07/2023
Number Number Number Number
Non-clinical Clinical Non-clinical Clinical
£100,000 to £109,999 15 6 14 6
£110,000 to £119,999 15 4 13 2
£120,000 to £129,999 5 6 5 9
£130,000 to £139,999 5 6 5 5
£140,000 to £149,999 2 6 1 8
£150,000 to £159,999 2 9 4 4
£160,000 to £169,999 2 3 1 7
£170,000 to £179,999 2 6 2 3
£180,000 to £189,999 3 6 1 4
£190,000 to £199,999 1 3 1 2
£200,000 to £209,999 - 2 - 1
£210,000 to £219,999 - 1 - -
£220,000 to £229,999 - - - -
£230,000 to £239,999 - - - -
£240,000 to £249,999 - - - -
£250,000 to £259,999 - - - -
£260,000 to £269,999 - - 1 -
£270,000 to £279,999 - - - -
£280,000 to £289,999 - - - -
£290,000 to £299,999 1 - - -
53 58 48 51
2023/24 2022/23
Average staff numbers by major category: Number Number
Academic departments 1,543 1,410
Academic services 300 276
Research grants and contracts 676 640
Administration and central services 495 479
Premises 157 157
Other 72 73
Catering and residences 16 16
3,259 3,051
Compensation for loss of office payable to senior post-holders:
£000 £000
Compensation payable recorded within staff costs - -

Voluntary Severance schemes after the 31 July 2024 reporting date are detailed at Note 27.

The percentage of the total pay bill spend on trade union facility time was 0.06%.

55

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

8. Year Ended 31 July 2024
Year Ended 31 July 2023
Notes Consolidated
Institution
Consolidated
Institution
£000
£000
£000
£000
Other operating expenses
Academic departments
18,418
18,418
19,078
19,078
Academic services
13,516
13,515
12,250
12,250
Research grants and contracts
23,697
23,697
24,517
24,517
Administration and central services
42,233
42,174
46,885
46,803
Premises
13,747
14,583
14,993
15,573
Other
3,584
3,584
3,341
3,341
Catering and residences
13,070
13,070
9,739
9,739
128,265
129,041
130,803
131,301
Other operating expenses include:
External auditors remuneration in respect
of audit services
894
311
External auditors remuneration in respect
of non-audit services
19
18
Internal auditors remuneration
124
124
Operating lease rentals:
Plant and machinery
26
-
-
Office equipment
26
432
265
Agency staffing costs
1,451
974

Interest paid under the Late Payment of Commercial Debts (interest) Act 1998 was £97 (2023: £59).

9. Year Ended 31 July 2024
Year Ended 31 July 2023
Consolidated
Institution
Consolidated
Institution
£000
£000
£000
£000
Interest and other finance costs
Loan interest
193
193
196
196
Finance lease interest
-
-
-
-
Net charge on pension schemes
32
3,731
3,731
4,672
4,672
3,924
3,924
4,868
4,868

56

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

10.
11.
12.		 Year Ended 31 July 2024
Year Ended 31 July 2023
Consolidated
Institution
Consolidated
Institution
£000
£000
£000
£000
Taxation
Recognised in the statement of comprehensive income:
Current tax
UK corporation tax
-
-
-
-
Foreign tax
-
-
-
-
Total tax expense
-
-
-
-
Year Ended
31 July 2024
Year Ended
31 July 2023
Consolidated
Consolidated
£000
£000
Surplus on continuing operations for the year
Universit surplus for the year
73,731
5,229
(Deficit)/surplus generated by associate and subsidiary
undertakings
(388)
396
Surplus on continuing operations for theyear
73,343
5,625
Intangible assets
Assets in Use Assets in the Total
Course of
Construction
£000 £000 £000
Consolidated and Universit
Cost
At 1 August 2023 8,627 11,573 20,200
Additions 417 - 417
Disposals (408) (884) (1,292)
Transfers 789 (789) -
At 31 July 2024 9,425 9,900 19,325
Depreciation and Impairment
At 1 August 2023 3,734 9,495 13,229
Charge for the year 1,292 - 1,292
Impairment loss 16 897 913
Disposals (408) (884) (1,292)
At 31 July 2024 4,634 9,508 14,142
Closing balance 4,791 392 5,183

The additions during the year relate to costs incurred in the development phase of software projects. All assets in the course of construction at 31 July 2024 have subsequently been brought into use with no impairment.

The disposals in the year relate to software assets fully amortised or impaired and not in use.

57

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

13. Property, plant and equipment

Propert, plant and equipment
Fixtures, Assets in the
Land and Plant and Fittings and Course of
Buildings Machinery Equipment Construction Total
£000 £000 £000 £000 £000
Consolidated
Cost or valuation
At 1 August 2023 402,406 3,202 48,831 17,073 471,512
Additions 8,149 - 10,210 25,012 43,371
Transfers 4,857 - 2,594 (7,451) -
Disposals - - (28,556) - (28,556)
At 31 July 2024 415,412 3,202 33,079 34,634 486,327
Depreciation and impairment
At 1 August 2023 144,742 1,054 38,626 - 184,422
Charge for the year 11,493 143 5,706 - 17,342
Impairment loss 891 - - - 891
Disposals - - (28,556) - (28,556)
At 31 July 2024 157,126 1,197 15,776 - 174,099
Net book value
At 31 July 2024 258,286 2,005 17,303 34,634 312,228
At 1 August 2023 257,664 2,148 10,205 17,073 287,090

58

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

13. Property, plant and equipment – continued

Fixtures, Assets in the
Land and Plant and Fittings and Course of
Buildings Machinery Equipment Construction Total
£000 £000 £000 £000 £000
Institution
Cost or valuation
At 1 August 2023 401,847 - 48,771 17,073 467,691
Additions 8,149 - 10,209 25,012 43,370
Transfers 4,857 - 2,594 (7,451) -
Disposals - - (28,556) - (28,556)
At 31 July 2024 414,853 - 33,018 34,634 482,505
Depreciation and impairment
At 1 August 2023 144,554 - 38,572 - 183,126
Charge for the year 11,482 - 5,704 - 17,186
Impairment loss 891 - - - 891
Disposals - - (28,556) - (28,556)
At 31 July 2024 156,927 - 15,720 - 172,647
Net book value
At 31 July 2024 257,926 - 17,298 34,634 309,858
At 1 August 2023 257,293 - 10,199 17,073 284,565

A full valuation of the University's academic, office, ancillary and support buildings was carried out on assets held at 1 August 2014 by Gerald Eve LLP.

At 31 July 2024, freehold land and buildings included £9.2m (2023 - £9.2m) in respect of freehold land and is not depreciated

The impairment loss relates to preliminary works relating to Reinforced Autoclaved Aerated Concrete (RAAC) where the building work is not proceeding.

The University's halls of residence are subject to a service concession arrangement described in Note 14 and are not included in fixed assets. Upon expiry of the Dundee Student Villages Agreement, the Agreement provides the University with contractual options to reacquire title to the properties remaining within the Project. The University is not under any obligation to exercise those options but instead holds a limited, discretionary first contractual right to reacquire the titles at the end of the term. In relation to the West Park Conference Centre, the University has a first option to purchase the Conference Centre if it is placed on the market for sale.

59

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

14. Service Concession Arrangements

On 5 July 2004, the University entered into a 35-year contract with Dundee Student Villages Limited, a company limited by guarantee and with charitable status, whereby certain of the University's halls of residence were sold, or leased, in part or full, to that company.

The agreement provides that the company shall operate and maintain the residences to agreed standards and that the University shall continue to market and allocate rooms to students, and provide them with pastoral care.

The University has no minimum guaranteed payment and therefore no asset and liability to recognise on the Balance Sheet.

Upon expiry of the Dundee Student Villages Limited agreement, the agreement provides the University with contractual options to reacquire title to the properties. Those options are subject to specified conditions. Importantly, the University is not under any obligation to exercise those options but instead holds a limited, discretionary first contractual right to reacquire the titles at the end of the term

In relation to the West Park Conference Centre, the University has a first option to purchase the Conference Centre if it is placed on the market for sale.

15. Non-Current Investments

Other Endowment
Subsidiary fixed asset asset
companies investments investments Total
£000 £000 £000 £000
Consolidated
At 1 August 2023 - 2,082 29,997 32,079
Additions 119 - 33,439 33,558
Disposals - (107) (33,098) (33,205)
Increase/(decrease) in market value of investments - (648) 3,102 2,454
At 31 July 2024 119 1,327 33,440 34,886
Institution
At 1 August 2023 - 2,082 29,997 32,079
Additions - - 33,439 33,439
Disposals - (107) (33,098) (33,205)
Increase/(decrease) in market value of investments - (648) 3,102 2,454
At 31 July 2024 - 1,327 33,440 34,767
Other non-current investments consist of: Consolidated and Universit
£000
Listed investments -
Index linked government stocks and investment trusts 78
Other 1,249
1,327

Listed investments are held at fair value.

60

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

16.
17.		 Year ended 31 July 2024
Year ended 31 July 2023
Consolidated
Institution
Consolidated
Institution
£000
£000
£000
£000
Trade and other receivables
Amounts falling due within one year:
Trade receivables
18,278
18,196
22,684
22,669
Accrued income on research projects
17,811
17,811
13,522
13,522
Prepayments and other accrued income
14,656
14,607
19,399
19,095
Amounts due from subsidiary companies
-
1,383
-
1,797
50,745
51,997
55,605
57,083
Year ended 31 July 2024
Year ended 31 July 2023
Consolidated
Institution
Consolidated
Institution
£000
£000
£000
£000
Cash and cash equivalents
Short term deposits
29,446
29,446
62,438
62,438
Bank
2,927
2,867
11,965
11,887
Cash on hand
18
18
29
29
32,391
32,331
74,432
74,354

Deposits are held with banks and building societies operating in the London market and licensed by the Financial Services Authority as instant access or with less than three months maturity at the balance sheet date.

61

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

18. Consolidated reconciliation of net cash

Consolidated reconciliation of net cash
£000
Net cash at 1 August 2023 60,637
Movement in cash and cash equivalents (42,041)
New loan finance -
Repayment of unsecured loans 1,124
Movements in finance leases -
Net cash at 31 July 2024 19,720
Change in net cash (40,917)
Analysis of net cash: 31 July 2024 31 July 2023
£000 £000
Cash and cash equivalents 32,391 74,432
Borrowings: amounts falling due within one year
Unsecured loans (1,356) (1,125)
Obligations under finance leases - -
(1,356) (1,125)
Borrowings: amounts falling due after more than one year
Unsecured loans (11,315) (12,670)
Obligations under finance leases - -
(11,315) (12,670)
Net cash at 31 July 2024 19,720 60,637

62

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

19. Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Year ended 31 July 2024 Year ended 31 July 2023
Consolidated Institution Consolidated Institution
£000 £000 £000 £000
Unsecured loans 1,356 1,356 1,125 1,125
Obligations under finance leases - - - -
Trade payables 7,215 7,099 10,075 9,713
Social securit and other taxation payable 3,954 3,954 3,825 3,825
Accruals and deferred income 101,351 101,073 106,239 106,009
113,876 113,482 121,264 120,672

Deferred income

Included with accruals and deferred income are the following items of income which have been deferred until specific performance related conditions have been met.

Year ended 31 July 2024 Year ended 31 July 2023
Consolidated Institution Consolidated Institution
£000 £000 £000 £000
Research grants received on account 29,293 29,293 30,183 30,183
Other income received on account 42,234 42,230 45,602 45,597
71,527 71,523 75,785 75,780

63

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

20. Creditors: amounts falling due after more than one year

Year ended 31 July 2024 Year ended 31 July 2023
Consolidated Institution Consolidated Institution
£000 £000 £000 £000
Deferred income - - - -
Unsecured loans 11,315 11,315 12,670 12,670
Obligations under finance leases - - - -
11,315 11,315 12,670 12,670
Analysis of secured and unsecured loans:
Due within one year or on demand 1,355 1,355 1,125 1,125
Due between one and two years 2,021 2,021 1,355 1,355
Due between two and five years 5,870 5,870 5,934 5,934
Due in five years or more 3,425 3,425 5,381 5,381
12,671 12,671 13,795 13,795
Due within one year or on demand (1,356) (1,356) (1,125) (1,125)
Total secured and unsecured loans due
after more than oneyear		 11,315 11,315 12,670 12,670
Unsecured loans repayable by 2031 12,671 12,671 13,795 13,795
12,671 12,671 13,795 13,795

There is one loan from Salix Limited amounting to £888k (2023: £1,574k) repayable in six-monthly, interest-free instalments until April 2026 to fund energy efficient lighting projects of which £86k (2023: £130k) remains outstanding at 31 July 2024.

There is a loan from the Scottish Funding Council carbon reduction programme amounting to £295k (2023: £295k) repayable in monthly, interest-free instalments until December 2025 to fund energy saving projects of which £63k (2023: £105k) remains outstanding at 31 July 2024.

There are seven Scottish Funding Council Financial Transactions loans amounting to £15,900k. Interest is calculated at 0.25% per annum and the loans are all repayable by March 2031. £12,520k (2023: £13,560k) remains outstanding as at 31 July 2024. One of the loans, which amounts to £5.5m, has the capital repayments deferred until June 2025 and then payable quarterly thereafter is for the specific purpose of Growing the Tay Cities Biomedical Cluster. Each of the remaining six loans has been granted to ensure building refurbishments and energy and efficiency upgrades and are repayable in quarterly instalments until 31 March 2031.

At 31 July 2024 the University had in place a three-year £40m Revolving Credit Facility with options to extend via one year extensions at the end of years one and two. This facility was undrawn. As a result of the deterioration in the University's financial performance a breach of covenants occurred and this had not been flagged in advance to the lender. The University was therefore unable to access this facility. In August 2025, and following approval by Court, the University cancelled the Revolving Credit Facility.

64

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

21. Provisions for liabilities

Provisions for liabilities
Obligation to UODS
fund deficit on Pension scheme Total Total Total
USS Pension enhancement deficit Pensions Other Associated Associated
(note 32) on termination (note 32) Provisions Provisions Company and Other
£000 £000 £000 £000 £000 £000 £000
Consolidated
At 1 August 2023 80,316 3,664 40,920 124,900 545 5,848 6,393
Interest 1,847 - 1,884 3,731 - - -
Utilised in year (2,428) (442) (9,002) (11,872) (95) - (95)
Additions in 2023/24 - 186 3,688 3,874 314 766 1,080
Unused amounts reversed
in 2023/24		 (79,735) 35 (9,729) (89,429) (450) - (450)
At 31 July 2024 - 3,443 27,761 31,204 314 6,614 6,928
Obligation to UODS
fund deficit on Pension scheme Total Total Total
USS Pension enhancement deficit Pensions Other Associated Associated
(note 32) on termination (note 32) Provisions Provisions Company and Other
Institution £000 £000 £000 £000 £000 £000 £000
At 1 August 2023 80,316 3,664 40,920 124,900 545 - 545
Interest 1,847 - 1,884 3,731 - - -
Utilised in year (2,428) (442) (9,002) (11,872) (95) - (95)
Additions in 2023/24 - 186 3,688 3,874 314 - 314
Unused amounts reversed
in 2023/24		 (79,735) 35 (9,729) (89,429) (450) - (450)
At 31 July 2024 - 3,443 27,761 31,204 314 - 314

Note: in the Consolidated Statement of Cash Flows the movement on USS pension provision is accounted for under "Pension cost less contributions payable".

Pension enhancement on termination

This reflects the University's commitment to pay pension benefits to existing and former employees where a separate scheme is not in place. A valuation of the existing pension provision at 31 July 2024 was carried out by the University's appointed independent actuary, Spence & Partners.

The assumptions for calculating the provision for pension enhancements on termination under FRS 102, are as follows:

Consolidated
Discount rate net of CPI inflation 1.95% – 2.51%
Inflation 2.39% – 2.95%

65

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

21. Provisions for liabilities – continued

UODS deficit

The obligation to fund the deficit on the University of Dundee's Superannuation Scheme (UODS) arises from the contractual obligation with the pension scheme for total payments relating to benefits arising from past performance. The deficit within the scheme at 31 July 2024 was assessed by the University's appointed independent actuary, Spence & Partners.

The assumptions for calculating the provision are described in Note 32.

The exact amount and timing of these outflows is uncertain.

Associated Company

The University has a 33.3% holding in Dundee Student Villages (DSV), a company limited by guarantee, which operates and maintains University residences.

Proportion of voting rights held 33.3%
Nature of business Residences
Date of financial information 31 July 2024
Universit
share
of DSV
DSV Limited Limited
£000 £000
Total funds (19,842) (6,614)
(Deficit) Surplus for the year (2,298) (766)
Total income 8,322 2,774
Total fixed assets 22,275 7,425
Total current assets 15,925 5,308
Liabilities less than one year (3,366) (1,122)
Liabilities more than one year (54,676) (18,225)

66

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

22. Endowment Reserves

Restricted
permanent
endowments
Unrestricted
permanent
endowments
Expendable
endowments
2024
Total
2023
Total
Consolidated and Institution
£000
£000
£000
£000
£000
Balances at 1 August
Capital
21,189
8,020
3,793
33,002
32,202
Accumulated income
1,433
-
-
1,433
1,735		 Restricted
permanent
endowments
Unrestricted
permanent
endowments
Expendable
endowments
2024
Total
2023
Total
Consolidated and Institution
£000
£000
£000
£000
£000
Balances at 1 August
Capital
21,189
8,020
3,793
33,002
32,202
Accumulated income
1,433
-
-
1,433
1,735
22,622
8,020
3,793
34,435
33,937
New endowments
44
-
566
610
671
Investment income
340
128
71
539
350
Expenditure
(540)
(129)
(800)
(1,469)
(987)
Increase in market value of
investments
2,253
851
-
3,104
464
Total endowment comprehensive
income for the year
2,097
850
(163)
2,784
498
At 31 July
24,719
8,870
3,630
37,219
34,435
Represented by:
Capital
23,485
8,870
3,630
35,985
33,002
Accumulated income
1,234
-
-
1,234
1,433
24,719
8,870
3,630
37,219
34,435
Analysis by tpe of purpose:
Lectureships
8,174
-
-
8,174
7,399
Scholarships and bursaries
11,141
4,628
418
16,187
14,948
Research support
757
-
2,619
3,376
3,460
Prize funds
3,831
-
74
3,905
3,578
General
816
4,242
519
5,577
5,050
24,719
8,870
3,630
37,219
34,435
Analysis by asset:
Current and non-current asset investments
Cash and cash equivalents		 33,440
29,997
3,779
4,438
37,219
34,435

67

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

23. Restricted Reserves

Reserves with restrictions are as follows:

Unspent
capital grants
Donations
2024
Total
2023
Total
£000
£000
£000
£000
Consolidated
Balances at 1 August
100
647
747
439
New grants
5,050
-
5,050
600
New donations
-
648
648
636
Other income
-
589
589
420
Capital grants utilised
(5,148)
-
(5,148)
-
Expenditure
-
(916)
(916)
(1,348)		 Unspent
capital grants
Donations
2024
Total
2023
Total
£000
£000
£000
£000
Consolidated
Balances at 1 August
100
647
747
439
New grants
5,050
-
5,050
600
New donations
-
648
648
636
Other income
-
589
589
420
Capital grants utilised
(5,148)
-
(5,148)
-
Expenditure
-
(916)
(916)
(1,348)
Total restricted comprehensive income for the year
(98)
321
223
308
At 31 July
2
968
970
747
Analysis of other restricted funds/donations by tpe of purpose:
Lectureships
Scholarships and bursaries
Research support
Prize funds
General		 -
-
7
7
81
8
-
-
880
632
968
647

24. Capital and other commitments

Provision has not been made for the following capital commitments at 31 July 2024:

Year ended 31 July 2024 Year ended 31 July 2023
Consolidated Institution Consolidated Institution
£000 £000 £000 £000
Commitments contracted for 3,945 3,945 27,624 27,624
Authorised but not contracted for 2,556 2,556 8,110 8,110
6,501 6,501 35,734 35,734

Due to the University's financial position, capital projects (excluding those supported through external funding such as the Tay Cities Deal) have been paused or delayed unless essential, for example for health and safety reasons. Excluding Tay Cities projects, expenditure post 31 July 2024 for the project listed above totalled £2.8m.

68

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

25. Contingent liabilities

The University has disclosed all contingent liabilities for the year ended 31 July 2024 below. In undertaking its assessment of contingent liabilities, the University has ensured it has considered all matters set out in these financial statements, including the potential impact of identified non-compliance set out in its governance statement on potential liabilities at 31 July 2024.

The University, jointly with six other universities, has provided a pension guarantee to the Universities Superannuation Scheme (USS) in the event of the cessation of membership of the USS by Advanced Procurement for Universities and Colleges (APUC). The potential financial effect cannot be estimated.

The University has provided a written undertaking of support to the University's subsidiary company, Dundee University Utility Supply Company Limited for the period to 31 July 2027 to assist the company in meeting its liabilities as and when they fall due but only to the extent that funds are not otherwise available to the company to meet such liabilities.

The University has also provided a written undertaking of support to University of Dundee Nursery Limited, a subsidiary company, for the period to 31 August 2026 for the same purpose. As at 31 July 2024, University of Dundee Nursery Limited reported net liabilities of £287k, indicating the level of financial support required.

In June 2023, the UK High Court (Virgin Media Limited v NTL Pension Trustees II Limited) ruled that certain historical amendments to benefits made after 6 April 1997 for contracted-out defined benefit schemes were invalid if they were not accompanied by the correct actuarial confirmation. The judgment was subject to appeal, and the Court of Appeal heard the arguments on 26 and 27 June 2024. The Court ruled that amendments made without the required Section 37 confirmation are not valid, potentially impacting Defined Benefits (DB) schemes that were previously contracted-out on a salary-related basis.

In June 2025 the Department for Work and Pensions advised that it would introduce legislation to allow affected schemes the ability retrospectively to obtain written actuarial confirmation that historic benefit changes met the standards required.

The Trustees of the University of Dundee Superannuation Scheme have taken actuarial advice and have no material concerns in relation to the Section 37 implications for the Scheme. A proportionate approach has been taken regarding the identification of benefit changes in the relevant period and a review of relevant documentation. The Trustees have noted that the Pension Schemes Bill includes provisions which will mean that most schemes will be able to retrospectively obtain the actuarial confirmation which will validate the affected scheme rule amendment. As the guidance has been published ahead of Royal Assent, which is also the effective date of these Pension Schemes Bill provisions, it may change if the Pension Schemes Bill changes. The Trustees have agreed to keep a watching brief on developments in this area.

The University does not consider it necessary to include an allowance for the potential impact of the Virgin Media case in its pension provisions.

26. Lease obligations

Total rentals payable under operating leases:

Lease obligations
Total rentals payable under operating leases:
31 July 2024 31 July 2023
Plant and Office Total Total
Machinery Equipment
£000 £000 £000 £000
Payable during the year - 432 432 265
Future minimum lease payments due:
Not later than 1 year - 432 432 265
Later than 1 year and not later than 5 years - - - -
Later than 5 years - - - -
Total lease payments due - 432 432 265

69

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

27. Events After the Reporting Period

It is a requirement under FRS 102 to disclose events that have occurred after the reporting date and prior to the date of signing and to consider whether these events result in an adjustment to the financial statements. The following significant events occurred between the reporting date of 31 July 2024 and the date of approval of these financial statements, many of which are detailed in the University’s crisis section on page 6.

These events include a material adverse change to the financial position of the University, changes in key leadership and governance roles and enhancements to governance and financial oversight.

Significant Events

Following the year end 31 July 2024, updated student recruitment data and revised financial forecasts for the 2024/25 financial year were prepared. These updates identified:

Resulting in:

These revised forecasts were presented to the University Executive Group on 12 November 2024, with updated forecasts indicating a potential operating deficit of circa £30m for financial year 2024/25 as a result of factors including a forecast of £12m adverse variance on tuition fee income, a £16.1m shortfall in identifying savings built into budgets partly offset by a number of other movements in income and expenditure.

At a meeting of the Court on 12 November 2024 the Principal and Vice-Chancellor, Prof Iain Gillespie, informed Court members and advised that the University’s going concern position was to be revised and therefore Court was not in a position to consider the draft 2023/24 Financial Statements. University staff were notified of the deterioration in the University’s financial position on 13 November 2024.

University staff were notified of the deterioration in the University’s financial position on 13 November 2024.

The Scottish Funding Council was informed on 13 November 2024.

Professor Iain Gillespie’s employment as Principal and Vice-Chancellor was terminated by mutual agreement on 5 December 2024 and Court approved the appointment of Professor Shane O’Neill as Interim Principal and Vice-Chancellor on 10 December 2024. The financial arrangements relating to Professor Gillespie’s termination are detailed at Note 7.

On 14 February 2025 the University submitted a letter to the Scottish Funding Council requesting financial support while it developed a financial recovery plan. The University received a grant of £10m in May 2025 and an offer of a £12m low interest loan. Due to the financial outlook and their responsibilities as Charity Trustees, Court members did not approve acceptance of the loan at that time.

Amanda Millar resigned as Chair of Court on 17 February 2025 with Trica Bey subsequently appointed Acting Chair of Court. On 6 March 2025 the University submitted a document “Towards a Recovery Plan” to the Scottish Funding Council. This Plan detailed proposed financial recovery actions to be taken to address the financial deficits. This Plan was not supported by key stakeholders.

70

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

27. Events After the Reporting Period – continued

In March 2025 the Scottish Funding Council announced it had appointed Professor Pamela Gillies to undertake an independent review into the financial oversight and decision making at the University of Dundee. The purpose of the review was to:

In April 2025 a Scottish public inquiry,The Eljamel Inquiry, was formally launched to investigate the professional practice of Mr Eljamel, a consultant neurosurgeon who worked for NHS Tayside between 1995 and 2014. The University of Dundee is a "Core Participant" in the Inquiry. During the relevant period Mr Eljamel held an honorary contract with the University of Dundee.

In May 2025 the Interim Principal & Vice-Chancellor, Professor Shane O’Neill, wrote to the Scottish Funding Council to request further financial support of £20m per annum for the next two financial years, 2025/26 and 2026/27. This request was based on updated financial forecasts prepared by the University with external support from professional advisers.

On 6 June 2025 the University launched a Voluntary Severance Scheme to deliver significant financial savings. This scheme closed on 25 July 2025 and resulted in a reduction of 240 staff FTE at a transitional cost of £9.4m with staff exiting during financial year 2025/26.

On 19 June 2025 the Scottish Funding Council published the report by Professor Pamela Gillies (“the Gillies Report”). The report highlighted clear failings in financial monitoring, management and governance.

On 19 June 2025 following publication of the Gillies Report, Professor Shane O’Neill stepped down as Interim Principal and Vice-Chancellor. Tricia Bey, Acting Chair of Court, and Carla Rossini, Convener of the Finance & Policy Committee, who were both due to step down from Court in the summer of 2025 left their positions with immediate effect. Ian Mair was appointed Acting Chair of Court and Professor Nigel Seaton was appointed Interim Principal and Vice-Chancellor. The financial arrangements relating to Professor O’Neill are detailed at Note 7.

The University published a formal response to the Gillies Report. The response documented actions to be taken in the short, medium and long term, designed to ensure the University has a sustainable future built upon strong governance, financial competence, transparency and accountability.

On 24 June 2025 Education Secretary Jenny Gilruth confirmed additional £40m funding in principle for the Scottish Funding Council to support the University of Dundee recovery. This funding, directed under Section 25 of the Further and Higher Education (Scotland) Act 2005, will be subject to appropriate conditions, due diligence, and will only be released by Scottish Government once a sustainable, long-term recovery plan is put in place.

Following the appointment of Professor Nigel Seaton as Interim Principal and Vice-Chancellor a recovery plan was developed detailing key financial recovery actions to address the financial sustainability of the University. On 11 August 2025 this plan, the University Recovery Plan (“URP”) was shared with the Scottish Funding Council following approval by Court. This URP was not supported and in September 2025 three main conditions for future funding were confirmed.

In November 2025 the University received draft Conditions of Grant from the Scottish Funding Council, subsequently confirmed as final in the formal Section 25 funding letter received in March 2026. These Conditions of Grant required a number of actions from the University, all of which have been provided by the deadlines stated in the draft Conditions of Grant at the time of approval of these Financial Statements.

On 27 November 2025 Esther Roberton was elected as Chair of Court.

71

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

27. Events After the Reporting Period – continued

A second Voluntary Severance scheme was launched in February 2026 and closed on 13 March 2026. This scheme resulted in a reduction of 111 staff FTE with a transitional cost of £3.9m.

In January 2026 the University prepared revised financial forecasts. These forecasts form the basis of the going concern assessment referred to in the Statement of Accounting Policies and also form the financial basis of the Strategy to Recovery which has been developed in consultation with staff, students and other key stakeholders. The Scottish Government appointed professional advisers to undertake due diligence of the University’s forecasts. This work supported the Scottish Government’s Accountable Officer process and resulted in formal confirmation of the offer of up to £40m of Section 25 grant funding over the 2025/26 and 2026/27 financial years. On 31 March 2026 the University received the first tranche of this funding of £13m. In addition, the University’s Court approved the acceptance of the £12m SFC loan offered in 2025 and received the £12m on 31 March 2026.

Following approval by the University Court on 9 June 2026, the Strategy to Recovery was submitted to the Scottish Funding Council. On 12 June 2026 the SFC Board confirmed in writing that it had considered the Strategy to Recovery and had determined that it was compliant with the Conditions of Grant. The Scottish Funding Council also confirmed it will continue to closely monitor the implementation of the strategy and will require the University to continue to comply with the Conditions of Grant, including providing SFC with the Key Performance Indicators detailed in those conditions.

On 16 June 2026 the University announced it had entered into formal Collective Consultation for a minimum period of 45 days as it moves forward with identifying further savings across its entire cost base.

Current Position at Date of Signing

Engagement with external stakeholders remains ongoing at the date of approval of these financial statements.

In response to the matters identified, the University has implemented or commenced:

These actions are intended to stabilise the University’s financial position and address governance weaknesses identified in the Gillies Report.

All members of the University Executive Group in place in 2024 have now left the University. All positions which are now members of the University Executive Group have either been appointed to on a permanent basis or this is currently in train.

Conclusion

The matters described above primarily relate to:

72

Financial Statements 2023/24

27. Events After the Reporting Period – continued

These events are considered non-adjusting events as they reflect conditions that became evident after the reporting date rather than conditions that existed at 31 July 2024. Accordingly, no adjustments have been made to the amounts recognised in these financial statements for the year ended 31 July 2024.

However, these events are significant to understanding of the University’s governance, financial sustainability, and risk profile and are therefore disclosed.

The matters described above are relevant to the University’s assessment of going concern. The impact of updated forecasts and financial recovery planning are described in the “Basis of Preparation” in the Statement of Accounting Policies.

28. Bursaries and other student support funds disbursed as agent

2023/24 2023/24 2023/24 2023/24 2022/23
Childcare Nursing Discretionary Total Total
£000 £000 £000 £000 £000
Balance brought forward - - 44 44 105
Repaid to funder - - (44) (44) (61)
Allocation received in the year 140 55 431 626 906
Expenditure (126) (55) (449) (630) (890)
Universit contribution to funds - 1 1 2 2
Virements (14) (1) 17 2 (18)
Balance carried forward - - - - 44
Repayable as clawback - - - - 44
Retained by Universit for students - - - -

Student Award Agency Scotland grants are available solely for students: the University acts only as paying agents. The grants and related disbursements are therefore excluded from the statement of comprehensive income.

73

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

29. Disclosure of related party transactions

Members of University Court

The members of University Court are the trustees for charitable law purposes. Due to the nature of the University's operations and the membership of University Court being drawn from the public and private sectors, it is inevitable that transactions will take place with organisations in which a member of University Court or University Executive Group may have an interest. All such transactions, including those identified below, are conducted at arm’s length and in accordance with the University's Financial Regulations and usual procurement procedures. The University has taken advantage of the exemption within FRS 102 Section 33 ‘Related Party Disclosures’ and has not disclosed transactions with other wholly owned group entities.

A review of the register of interests of Court members and University Executive Group was made and the following purchase ledger and sales ledger transactions were identified for disclosure:

Organisation Relationship Nature of Receipts Payments Balance due
Transaction from/(to) at
31/07/2024
£000 £000 £000
Association of Heads of Universit
Administration		 Supplier Operations - 8 -
British Heart Foundation Funder Operation/Grants 50 - 8
British Library Supplier Operations - 1 -
Design Dundee Ltd Supplier Operations - 252 (63)
Dundee Cit Council Supplier/
Customer		 Operation/Grants 17 1,594 (76)
Dundee Rep Theatre Funder Operations - 9 -
Edinburgh Napier Universit Funder Operations 24 21 5
Medicines for Malaria Venture Funder Operations 108 - 65
National Library of Scotland Supplier Operations - 13 -
NatureScot Supplier Operations 6 - -
Phaser Biomedical Ltd Supplier Operations 35 21 26
Robert Gordon Universit Funder Operations 2 8 -
Robertson Construction Tayside Ltd Supplier Operations - 26,162 -
Royal Societ of Biology Funder Operations 1 - -
Royal Societ of Edinburgh Funder Operations 93 3 19
Scottish Enterprise Funder Operation/Grants 8,267 8 11
Scottish Government Funder Operation/Grants 714 507 39
Scottish Library and Information Council Supplier Operations - 1 -
Universit and Colleges Employers
Association		 Supplier Operations - 20 (17)
UK Biobank Ltd Supplier Operations 4 - -
UK Research and Innovation (excludes
individual research councils)		 Supplier Operation/Grants 1 60 (9)
West Park Centre Supplier Operations - 18 -

No expenses were recognised in respect of bad or doubtful debts on amounts due from related parties.

74

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

29. Disclosure of related party transactions continued

Principal Prof Iain Gillespie rented a residential property from the University at a cost of £1,100 per month, based on a comparable commercial market rent for the area. At 31 July 2024 there was no outstanding balance on payments due for this arrangement.

Balances due from related parties not disclosed on the balance sheet at 31 July were as follows:

2024 2023
£000 £000
Due to Dundee Student Villages - -

In accordance with the agreement with Dundee Student Villages, the University transferred £11.6m (2023: £10.0m) of student rental income to Sanctuary Housing Association.

Accommodation amounting to £18k (2023: £35k) was purchased from West Park Centre Limited, a trading subsidiary of Dundee Student Villages.

30. Subsidiary undertakings

The subsidiary companies wholly-owned or effectively controlled by the University and registered in Scotland are as follows:

Company Purpose Number Percentage
of Shares Owned
Dundee Universit Utilit
Supply Company Limited		 To generate heat and power solely for the
Universit.		 2 100%
SC124982
Universit of Dundee
Nursery Limited		 To promote the care and education of children
of staff and students of the Universit.		 Limited by
Guarantee		 100%
SC230105
UOD Enterprises Limited Holding company 1 100%
SC747153

The University of Dundee Nursery will close in September 2026.

75

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

31. Connected charitable institutions

Two charitable institutions are administered by or on behalf of the University and have been established for special purposes. One of the connected institutions is included as a subsidiary undertaking in these consolidated financial statements; the other is not included in the consolidation since the University does not have control over its activities.

The movement in the year to 31 July 2024 on the total funds of the University of Dundee Nursery Limited, as reported in its financial statements, was as follows:


financial statements, was as follows:
At 31 July Income Expenditure Change in At 31 July
2023 market value 2024
£000 £000 £000 £000 £000
Consolidated (see note 30)
Universit of Dundee Nursery Limited
(SC032969) (159) 469 (597) - (287)

The movement in the year to 31 July 2024 on the total funds of the Centenary Trust of Duncan of Jordanstone College of Art, as reported in its financial statements, was as follows:

At 31 July Income Expenditure Change in At 31 July
2023 market value 2024
£000 £000 £000 £000 £000
Not consolidated
Centenary Trust of Duncan of Jordanstone
College of Art
(SC020617) 124 1 - - 125

The Centenary Trust was established in 1991 to award scholarships, grants and other financial support to students, graduates or staff of Duncan of Jordanstone College of Art and Design.

32. Pension Schemes

The principal pension schemes open to new University staff, depending on the category of staff, are:

In addition, contributions are paid in respect of members of the following schemes which are closed to new employees:

The principal pension schemes for the University's staff are the Universities Superannuation Scheme (USS), the University of Dundee Superannuation and Life Assurance Scheme (UODS) and the University of Dundee Royal London Pension Scheme (RLPS).

76

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

32. Pension Schemes – Continued

The University of Dundee Superannuation and Life Assurance Scheme (UODS) closed to new entrants on 31 December 2022. The Defined Benefit scheme remains open for existing active members on this date.

University of Dundee Royal London Pension Scheme is a Defined Contribution pension scheme and is a qualifying scheme as per automatic enrolment legislation. This scheme is open to support staff of the University.

The STSS is unfunded, multi-employer, defined benefits scheme. As there are no underlying assets and liabilities, the University has accounted for its contributions as if it were a defined contribution scheme.

The NHS pension scheme is a multi employer defined benefit scheme. As there are no underlying assets and liabilities the University has accounted for its contributions as if it were a defined contribution scheme.

For reasons of materiality, the University has accounted for its contributions to the two local government schemes, TSF and SPF, and the MRC as if these were defined contribution schemes.

The total pension staff cost for the University and its subsidiaries was:

Year Ended Year Ended
31 July 2024 31 July 2023
Note £000 £000
USS (63,846) 8,463
UODS including FRS 102 adjustments 1,723 3,858
Royal London Pension Scheme 460 79
Other pension schemes 7 1,374 1,036
(60,289) 13,436

1. Universities Superannuation Scheme (USS)

The University participates in the Universities Superannuation Scheme. The assets of the scheme are held in a separate trustee administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The University is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, the University therefore accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the Statement of Comprehensive Income represents the contributions payable to the scheme. Since the University had entered into an agreement (the Recovery Plan) that determined how each employer within the scheme will fund any overall deficit, the University recognised a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) with related expenses being recognised through the Statement of Comprehensive Income.

FRS 102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry- wide scheme such as the Universities Superannuation Scheme. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense in the surplus or deficit in accordance with Section 28 of FRS 102. Court is satisfied that the Universities Superannuation Scheme meets the definition of a multi-employer scheme.

77

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

32. Pension Schemes – Continued

1. Universities Superannuation Scheme (USS)

The total (credit)/cost (released)/charged to the Statement of Comprehensive Income is £80.3m (2023: £9.3m)

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

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

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

The 2023 valuation was the seventh valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions (the statutory funding objective). At the valuation date, the value of the assets of the scheme was £73.1 billion and the value of the scheme’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%.

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

CPI assumption

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

1.0% p.a. to 2030, reducing linearly by 0.1% p.a. from 2030

Pension increases (subject to a floor of 0%)

Benefits with no cap:

CPI assumption plus 3bps

Benefits subject to a “soft cap” of 5% (providing inflationary increases up to 5%,

and half of any excess inflation over 5% up to a maximum of 10%):

CPI assumption minus 3bps

Discount rate (forward rates)

Fixed interest gilt yield curve plus:

Pre-retirement: 2.5% p.a

Post retirement: 0.9% p.a.

78

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

32. Pension Schemes – Continued

1. Universities Superannuation Scheme (USS) – continued

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

2023 valuation

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

The current life expectancies on retirement at age 65 are:

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

2. University of Dundee Superannuation and Life Assurance Scheme (UODS)

The University of Dundee ('the University') sponsors The University of Dundee Superannuation and Life Assurance Scheme ('the Scheme'), a funded defined benefit pension scheme in the UK. The Scheme closed to new members on 31 December 2022.

Under UK pensions legislation, the University is responsible for funding the Scheme benefits and for paying contributions to make up any shortfall between the assets and the liabilities of the Scheme. The Scheme liabilities are assessed at least every three years by the Scheme actuary. It is the University's funding policy to annually contribute an amount agreed between the University and the Trustee of the Scheme in accordance with UK legislative requirements if a funding deficit exists. The amount of contributions required depends on the assumptions used by the actuary and can therefore be volatile between actuarial valuations. This volatility of contribution amounts can be to the detriment of the University's cashflows. The volatility of the Scheme's liabilities against the assets held impacts on the University's balance sheet.

Formal funding calculations as at 31 July 2024 have been used in the completion of these disclosures. The University currently pays deficit reduction contributions of £3,713,000 p.a. (increasing by 3% p.a. each 1 August) as noted in the Schedule of Contributions agreed as part of the actuarial valuation as at 31 July 2020. A new Schedule of Contributions was agreed on 30 January 2023 and as such Active members in the Scheme now pay increased contributions at the rate of 8.75% p.a. of salary. The University pays 24.85% p.a. of salary in respect of future accrual.

79

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

32. Pensions Schemes – continued

2. University of Dundee Superannuation and Life Assurance Scheme (UODS) - continued

(Retirement Benefits) Disclosure for the accounting period ending 31 July 2024

Under the definitions set out in FRS 102(28), UODS is a defined benefit pension scheme. The disclosures for the determination of the net pension liability by the actuary are set out below.

The amounts recognised in the statement of financial position are as follows:

Year Ended Year Ended
31 July 2024 31 July 2023
£000 £000
Fair value of plan assets 106,673 94,581
Present value of benefit obligation (134,434) (135,501)
Surplus/(deficit) in the Scheme (27,761) (40,920)

The amounts recognised in the Statement of Comprehensive Income are:

The current and past service costs, settlements and curtailments, together with the net interest expense for the year are included in profit or loss.

Remeasurements of the net defined benefit liability are included in other comprehensive income.

Year Ended Year Ended
31 July 2024 31 July 2023
Current service cost 1,804 3,968
Net interest on net defined benefit obligation 1,884 1,707
Gains and losses on settlements and curtailments - -
Gains and losses due to surplus limitations - -
Totalpension cost recognised in Statement of Comprehensive Income 3,688 5,675

80

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

32. Pension Schemes – continued

2. University of Dundee Superannuation and Life Assurance Scheme (UODS)

2. Universit of Dundee Superannuation and Life Assurance Scheme (UODS)
Year Ended Year Ended
31 July 2024 31 July 2023
Changes in Defined Benefit Obligation £000 £000
Opening Defined Benefit Obligation 135,501 172,218
Current Service Cost 1,804 3,968
Interest Expense 6,811 6,051
Employee Contributions 1,863 1,967
Actuarial (Gains)/Losses (6,635) (44,102)
Currency Exchange Differences - -
Benefits Paid (4,910) (4,601)
Charges Paid - -
Liabilities Assumed in Business Combinations - -
Losses/(Gains) on Settlements/Curtailments - -
Liabilities Extinguished on Settlements - -
Closing Defined Benefit Obligation 134,434 135,501
Year Ended Year Ended
31 July 2024 31 July 2023
Change in Fair Value of Scheme Assets
Opening Fair Value of Scheme Assets 94,581 120,534
Actual Return on Scheme Assets less Interest Income 1,210 (37,478)
Interest Income 4,927 4,344
Currency Exchange Differences - -
Employer Contributions 9,002 9,815
Employee Contributions 1,863 1,967
Benefits Paid (4,910) (4,601)
Administration Costs - -
Assets Acquired in a Business Combination - -
Settlements - -
Closing Fair Value of Scheme Assets 106,673 94,581
Year Ended Year Ended
31 July 2024 31 July 2023
Other Comprehensive Income
Actual Return on Scheme Assets Less Interest Income on Scheme Assets 1,210 (37,478)
Change in Assets Not Recognised Due to Change in Surplus Limitation - -
Actuarial Gains and (Losses) 6,635 44,102
Remeasurement Gains and (Losses) Recognised in Other Comprehensive Income 7,845 6,624

81

University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

32. Pension Schemes – continued

2. University of Dundee Superannuation and Life Assurance Scheme (UODS)

The principal actuarial assumptions used were:

Year Ended Year Ended
31 July 2024 31 July 2023
£000 £000
Liabilit discount rate 4.96% 5.05%
Inflation assumption - RPI (pre-2030) 3.29% 3.37%
Inflation assumption - RPI (post-2030) 3.09% 3.17%
Inflation assumption - CPI (pre-2030) 2.39% 2.47%
Inflation assumption - CPI (post-2030) 2.99% 3.07%
Rate of increase in salaries (pre-2030) 3.39% 3.47%
Rate of increase in salaries (post-2030) 3.99% 4.07%
Revaluation of deferred pensions:
Benefits accrued prior to 1 August 2009 (pre-2030) 2.39% 2.47%
Benefits accrued prior to 1 August 2009 (post-2030) 2.99% 3.07%
Benefits accrued after 1 August 2011 (pre-2030) 2.39% 2.47%
Benefits accrued after 1 August 2011 (post-2030) 2.50% 2.50%
Increases for pensions in payment:
Benefits accrued prior to 6 April 1997 3.00% 3.00%
Benefits accrued after 6 April 1997 (pre-2030) 3.63% 3.67%
Benefits accrued after 6 April 1997 (post-2030) 3.53% 3.57%
Benefits accrued after 1 August 2009 (pre-2030) 3.23% 3.30%
Benefits accrued after 1 August 2009 (post-2030) 3.05% 3.12%
Benefits accrued after 1 August 2011 (pre-2030) 2.39% 2.47%
Benefits accrued after 1 August 2011 (post-2030) 2.95% 3.03%

82

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

32. Pension Schemes – continued

2. University of Dundee Superannuation and Life Assurance Scheme (UODS) - continued

Year Ended Year Ended
31 July 2024 31 July 2023
Male Mortalit 123% of S3PMA 123% of S3PMA
Female Mortalit 111% of S3PFA 111% of S3PFA
Male mortalit improvements CMI 2023 with CMI 2022 with 1.25% p.a.
1.25% p.a. long-term long-term improvements,
improvements, initial initial addition of 0.2%,
addition of 0.2%, weight on 2020 and 2021
weight on 2020 and data of 10%, weight on
2021 data of 10%, all 2022 data of 25%, all
other core parameters other core parameters
Female Mortalit Improvements CMI 2023 with CMI 2022 with 1.25% p.a.
1.25% p.a. long-term long-term improvements,
improvements, initial initial addition of 0.2%,
addition of 0.2%, weight on 2020 and 2021
weight on 2020 and data of 10%, weight on
2021 data of 10%, all 2022 data of 25%, all
other core parameters other core parameters
Cash Commutation no allowance no allowance
Expenses no allowance no allowance
GMP Equalisation 0.4% of liabilities 0.4% of liabilities
The major categories of scheme assets are as follows:
Year Ended Year Ended
31 July 2024 31 July 2023
LLDI/Cash 43,737 41,615
Leveraged Synthetic Equit 13,014 9,458
Private Credit 11,947 11,350
Diversified Alternatives 11,947 14,755
Diversified Growth Fund 11,947 17,403
UK Corporate Bonds 14,081 -
Total 106,673 94,581
Level 1 3,243 2,861
Level 2 79,533 65,621
Level 3 23,897 26,099
Total market value of assets 106,673 94,581

No assets included in the fair value of plan assets are the entity's own financial instruments or are properties occupied or used by the entity.

Major categories of scheme assets are classified differently for the year ended 31 July 2024 to align with the actuarial report.

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University of Dundee

Notes to the Financial Statements

Year ended 31 July 2024

33. Accounting estimates and judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenue and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

a). Pensions - University of Dundee Superannuation Scheme (UODS)

The liability for the UODS scheme and key assumptions are shown in Note 32. A formal actuarial valuation has been carried out as at 31 July 2023. The disclosures have been calculated based on formal funding calculations as at 31 July 2024 by the actuary, Spence & Partners, using payroll and benefit information provided by the University. The resulting liabilities have then been adjusted to reflect the different assumptions used. The accounting disclosures are therefore heavily dependent on the results of the 31 July 2023 valuation and this approach is not as accurate as if the actuary had used actual census information as at 31 July 2024, but it is appropriate for the purpose of these disclosures and is in accordance with the provisions of FRS 102. Material changes to the membership profile since the 31 July 2023 valuation could result in the approximate approach producing materially inaccurate figures for the purpose of FRS 102.

The results are highly sensitive both to the actuarial assumptions used and to market conditions. The pension cost disclosures under FRS 102 are likely to remain volatile in future years. This is because the liabilities are discounted by reference to corporate bond yields whereas the scheme invests a significant proportion of its assets in equities and other return-seeking investments.

The key actuarial assumptions as at 31 July 2023 are set out in Note 32.

b). Pensions - Universities Superannuation Scheme (USS)

FRS 102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as Universities Superannuation Scheme. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit, results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) with the resulting expense charged through the Statement of Comprehensive Income in accordance with section 28 of FRS 102.

At 31 July 2023, the institution’s balance sheet included a liability of £80.3m for future contributions payable under the deficit recovery agreement which was concluded on 30 September 2021, following the 2020 valuation when the scheme was in deficit. No deficit recovery plan was required from the 2023 valuation, because the scheme was in surplus. Changes to contribution rates were implemented from 1 January 2024 and from that date the institution was no longer required to make deficit recovery contributions. The remaining liability of £79.7m was released to the Statement of Comprehensive Income. Further disclosures relating to the deficit recovery liability and key assumptions can be found in Note 32.

84

Financial Statements 2023/24

Notes to the Financial Statements

Year ended 31 July 2024

33. Accounting estimates and judgements – continued

c). Provisions and contingent liabilities

Management apply judgement to measuring and recognising provisions and the exposures to contingent liabilities related to pending litigation or other outstanding claims. Judgement is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in this evaluation process, actual losses may be different from the originally estimated provision.

Provisions and contingent liabilities are disclosed in Notes 21 and 25 respectively.

In June 2023, the UK High Court (Virgin Media Limited v NTL Pension Trustees II Limited) ruled that certain historical amendments to benefits made after 6 April 1997 for contracted-out defined benefit schemes were invalid if they were not accompanied by the correct actuarial confirmation. The judgement was subject to appeal, and the Court of Appeal heard the arguments on 26 and 27 June 2024. The Court ruled that amendments made without the required Section 37 confirmation are not valid, potentially impacting Defined Benefits (DB) schemes that were previously contracted-out on a salary-related basis. .

The Trustees have not looked into the potential impact of Section 37 related matters for the Scheme. It will be difficult to materially quantify any impact at the present time, and we are not currently aware of any negative impact on liabilities, although this may change in the future.

d). Material expenditure accruals are included in these financial statement relating to a long standing commercial dispute.

Although material, these accruals have been quantified based on a signed settlement agreement in place at the time of approving these financial statements.

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University of Dundee 86

University of Dundee

University of Dundee Nethergate Dundee DD1 4HN

t: +44 (0)1382 383000 w: dundee.ac.uk

The University of Dundee is a registered Scottish Charity, No. SC015096

24823

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