2021-12-31-accounts

ch￿ Numbor. SCfJ29163 UNIVERSITIES SCOTLAND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 July 2021

Contents Page Rèwt of Ihe Membars Report of Ihe independent auditors to the K•*mber5 Ststement of fina￿181 a¢ti¥ities 12 Balance sheet 13 Nol8s to the lIn￿l81 ststements 14 Universiti8s SI￿￿nd. statsments for the year ended 31 Juty 2021

Roport of the members for the year ended 31 July 2021 The members present thelr report and th& financial ststements for Universlttes ScoUarKI for th8 year ended 31 July 2021. unive￿118$ ScoUaThJ is a registered Chwity Ino SC0291631 based in Edinburgh. The chgrity represents the colledNe interests of all Scotbsh higher educa￿1n inst1￿￿onS to the Scottish Govemment. the Scottlsh Padiament. the Scotbsh Furthw and Higher Ed{Kat￿ FurKling CourKil (also knovm as the Scottish Funding Counc¥l or SFCI 8nd a wider netswyk of stakeholders. While acting autoncmousty in matters relating to devolvBd pdicy. Univwsilies Scotland also foms part of Ihe UK-wide reweserrtolive bc#Jy Unlvgrslties UK Iragistered tharity number 1001127 and registered company number 2517018). The Members of Universities ScotlaThJ (Inthes of the chority> appoinled for y￿r from l August 2020 10 31 Juty 2021 ￿re as follows.. ?rinop4. UnNersty of Aberdeen .'rinup4. UnNerslty of Abertay thjndee .,rin￿Pa1. UnNerslty of thJndee nup4. UnNwBity of Chjndee 1rfn￿p￿. UnNetslty of Edinburgh 'rindpd. Edlnburgh Napier Universty

rincip4. un￿sIty of Gloso )rindpd. H8rlot-Watt Unlvorsity inc4pd. Glasgcw Caledonwn Unfverrity JITeCtcY. Gla89￿ Sclw)ol ofArt Jli￿1p#l. Queen Margarèt Universny Edinbur¥) )rbrtlpal. The Robwl Gordon Unfvernity .>rtrKlpal. The Robwl Unfversity Jrtnclpal. The Royal Conservatoire of Scotland . rinclpal. Untvwsty of St Andrnw5 ' rmcipal and Chief Executi¥e, ISRUC) Scotlarrfl's Rural Colhge '.?rlnclpal. Unrue￿ty of Stirflng r)rfr￿￿pa1, University of Stratrdyde pry￿Apab. UnNersity of the West of s￿tland l)rwKipal, UniVe￿ty of the HvJhlands and Islands l>rirKipal, univer￿ of the Hvdhlands and1s18nds I)ir￿tor. The Open Universty in Scotland No Member of Un￿erS[tI9S Scouand had a lY￿fi￿al interesl in any conlvact with the charity. Members 8re the Ifice£hartdlrys, DlreGtCY5 or Pri￿PaI5 of the member inslitt￿. UnNersiUes Scol18TrJ.. Financ¥al slatemwts f(Y Ihe year ended 31 J￿Y 2021

Report of th• m•nkn ftK th• y•ar •ndqd 31 Juty 2021 . ¢onllnu•d Convener [￿M 01 Ayst 2020 Vlce Convenèr frcrfn 01 Awst 2020 Dirèetor Prlnclpol offlc• Hotyrood Park 106 Holyrood Road Edinburgh EH8 8AS 8•nk•rn National We8trninstsr 8ank PO Box 83 Tavl$lo¢k Ho￿• T￿Stock Squar? Lmdon WC1 H 9XA Sollcltorn Anderson Strathwn 1 Rulland Court EdinbLryh EH3 8EY Audltorn HaysrnacSnMg LLP 10 Queen Street Pla London EC4R 1AG 2 Untversibes So)￿8￿1. Financial slalements year KlJ 31 July 2021

STRUCTURE. GOVERNANCE AND IAANAGEMEP Universities Scotland L8 a membership body made up of the Pn"nupals and VIGe4hanc8llors of Scottish unlversities ONJ the F¥￿Ipal5 or Llrectors of sm811 speoalist hther education instrbjlions in Scotsand. Membership is volunlwy, but 811 18 Scollish hNJher ethKation ir￿llUtiOns, Ihe Open Unlverslty in Scoland. are current mernb￿. work of Universitses S&)tsnd is gukled by meetings of Members. vthich are held five Ilmes eath year. MpAnbers delegate resportsilwlity to a number of slanthng eommlttees. In 20￿￿21 these woro.. L6aming and Teaching Committee Research arKI Knowledge Exthange Commiitee Secretaries, Group Furnjing Pdlcy GTQUP rtém8tK)nal Commttlee AdM&￿OnS Group group Vovrks to 8 deffimd 8gonda Vlithin Its temis of refeTerK and rwrts ￿ progress lo meelngs of MemberyJ. Other sll) groups and Athlng pfjrties 8et up 8s requred. M••tlng$ of M•mb•v• of unlv•rsft1￿ Scotland The meetkng of Members is the dedslonamakiThJ bo(ty. Th• èxecJJtlYe h88ds ol all 19 educotlon in81Stulons In recolpt of main grant Ihe Scottish Funding Cc1￿￿1 we thg Mèmbers. The Chief Exe¢ulive ot Unlvgrsitkrys UK and the ConNww d the Scotland Socrot•rns' Group may al80 attend meetings of Members. The Convenef and conV￿r are erected by 8rkJ from the Members Sn o b811ol to serve for a tsmi of vo academlc yoars and are eligible for for ono fwther temi of ¢)ffi¢e at tha and of that period. Thè Convener, Vice Convener and the ThrectLY of Unfvorsltles Sg)ttand fom the Ex8CUtfve Commlttee for th8 tharlty. The Executive Committo8 develop for the fvll MeM￿rShIP 8nd cory out executtve acbon on behalf of the memb8Tship bets￿n mgetlng¥. At exh m•etkng a report Is prewby of tha acbvltles of the Ex¢cutNe group to the Members￿P. M•mb•r4hlp lub￿rtPOtsnl All Mernbers renew their subsui)tion8 annually for the year from 1 August. Unfversitss S¢ollorKI Commrttee decides annualty whelh¢r to vary the ¥ubsGriptlon rate ￿1c￿ bs by a fixod porc￿1898 awlied to each member. N•w m•mb•r Inductlon UnNèrsrties Scolland is in regularconleclwilh al membern 8ThJ gl¥s F4rlulw g11enu￿ to the integretlon of new members and to providing these members vlth appropriate advTce and guldance on specffic re¥ponsibilities. In most Cases n8w member5 of unNerSiti￿ Scoyand are 8180 naw members of UnNersities UK. and benofrt frryn the Ind￿tion arrangements of Unr¥ersrbe5 UK. Manag•mont •nd Stallh The employees of Universltl83 ScotlarKI we b88ed kn Edinburgh, in leased prgmises at Fk)tyrood Pavk House. The Oirector ha5 respon%bility for Flaming 8TrJ ¢Y&N￿or￿ Ihe ser￿S and strategies ft>r Universities Scotsnd within clear Fdioes ond wotrths set by the 8owd. He enswes that the team of 15 staff members provldes the skills arKI exp1ise ngcessary to run o su￿esSIUI rofess￿n81 membership organisation. Staff are involved in a wide range ofactiviiw lo Proff￿8 rrmbern' inlefesls In¢￿dIng policy r8s&qrch 8nd development, k)bbwng of pc4icym8kers. medkg V•Y)rk, faciliMk)n of dialogue and sharing of best wadce within ts sector Fnmotion of Scottish insuttths lespeckqlty for Sn Intemalion81 audience) 88 8ttr8ckn pla￿$ io St￿ aThJ to do rn8earth. Universii*s ScolwKI: Fmrwl slatfjm￿ts fDr the year ended 31 Juty 2021 3

Report ol th• m•mb•rs for th• y•w •nd•d 31 July 2021- contlw•d Member inwt and support lo the of Unwsities Sa￿and 15 ￿ a ￿1￿$Mur￿910d basis. The pay and r9Mw￿0ti￿ (rf key mwment (the Dlrector} Is s81 ty thg Unlverslties UK Rgmuneralion Commltte8, t>)mwses univer￿110$ UK members th8tred by the Tfe8surer and includ8s an independent memt•r. The pay remunwation levels for all ottrw staff grades ts ￿gO￿at￿j wlth ihe recognised union. PTospec( as of thè recognition agr8om8nL Rl•k managgmwrt Tho Exg¢utiv8 Committ89 of UniNwsibes SLYJtland (Convw. Vt4£mner Threck) rnwews the organisats'on's exposure to business. OpTrt￿al and ffinanC￿ risks. Key processes oiclude the planning and budgetin9 Systems, whlch Invc4ve thaft strategic and operational plan5 and draft budgets being consldered InI1181ty by th6 Executivè Committee to Iheir being submitted for approval to a meeting of Members. Thesè t¢)dies alxj perfmance ag81nsl the plan arKI bLet. A business c(￿ti￿ty plan has been formulal8d dealiryj vlth an em8rg8ncy. FinarKaal ¢4)ntrd is se￿red through the adminiitration of Univ8rsiti88 Scolbnd's finances by Unp4¢r6itig$ UK. Further details are gNen below in the Flnandal Review under P￿r￿[pOl rlsks and uncethnties. The M8mbgrs are salisfd that risks to tha organis8lion have been adeq￿ty reviemwd a￿1 addro$88d. R•8trlct•d fund• Inlemallonal actrwb•$ The Scotlsh Fundlng Council conlinues to pmvide rlry-f0nG￿ fuTrJing to UnwsitS9s Scolland for tho purF)se of supwtlng the s¢Gtor in its inlemational 8mbi¢iw to a compeljlve and attractive 8tu(ty dest6n8tion In Ihe gkJbo1 hMJlr e(knation market. Scottish Govemment h88 0XtoThj￿ Its grantfundkng lora furthar crte•r, swports the Conn•thd So)U8nd partnership and those prol8cts and events ddivered as p8rt of il fow3ed on Creallng fvrther rwortunlO08 thor•th oddirvJ v8lug lo the Intem￿lon￿ AspTrb'on5 of Ihe S￿#th8h sth. PubllG b•n•fit Tha Mombors. confiffn that Ihey haw ￿n￿ed wilh th• Chaithes and Trujtee Invo8ts))ent IScodarKI) Act 2005 and provKl• public benefft throu9h the charity'8 actMti88. Unfversltles Scctland's woth In of the hyher ¢d￿alK)n 8ethr li fnt and forttn￿l dad1¢4t￿ to the charitabl8 purpose of the advar￿men1 of educ8b"on. Through the $LPPOrt and 8dvooow we provide lo the Scottish UrnVe￿Il¢S also Gonlrfbule to ih*rfiJffilment ol Iheirwider charitoblg pwposes Includlng th8 advancement of health; the advartemenl of arts. h8ri¢age, cutture or science., the promollon of equality and diversity.. and advancement of 8nvlrwmentsl protectK)n or improvement. Univ¢rsilieg Scotland's work is onlyety cormiitted lo ￿ ddNery of public benefrt Ihmugh its Support for tho hKJher educgtion sectorfs contrit>ut1￿ to welthry. Memtw¥ derive M indthdual prfvalè benèfit from u￿Ver￿lIeS So)Iland. 4 un￿rsit￿ ScolaThJ: FinarKo1 statements fix the year 31 Juty 2¢r21

UNIVERSITIES SCOTLAND ACHIEVEME1￿ 2￿21 202LL21 Vds another extra¢)rdinary yearfor Un￿er51t1￿ Scolland. ck)minaled by C£￿tinUed management ofthe Covid emergency posilKir4ng ur￿Ver5￿3 as a forre that Mll drive p0sl-pgnd9m￿ recovery. Key a¢hievemen18 over the year ineludè.. E￿￿ring that univeNties could operata a$ far as was cowstent with the SCo￿h Govemmenf¥ very ￿ul10￿$ apwoath to managefnenl of CoM"d risks.. this required o)nthnued intenslve engagement to infom su￿￿Ve ikrations of Scoth"sh Govemment guldarKe to inslltut￿n$. Intensfve medio relation8 work to Tepre¥ent tho so¢￿$ intarests during controv8r8y aboLrt the Impact of the pand￿1¢ on studBnt vKllare. A Swttish Bl￿et oulcome representing 8 £123.2m111.4%) i￿1888• In Scothsh Govemment funding IDr hpjher education. Influence on mar￿feSt0$ beftye Ihe Scotli8h parN8ment etM)ns. leadirvJ to olectlon of a Scottlsh Govemment 8 spectft monrfesto ccnmilmwl lo sustahable funding for hvJher edLKation. Post-elect￿)n building of rd8thNps wilh new Ministets and opp)sitK)n hvjhgr elknalion spokespw)plo. Further prc3ress In V4idening ￿cesS to higher ¢du￿1]Qn. through putAication of a joint rep￿ wlth Coleges Scolland on to devekp leamers. Pathw￿ from colege to unNer8ity. and creallon ol a joint unfversityl colbge grtyJp to drNe thls foTrv8rd. A new cnpa*an, 'Skills+'. lo promotè the ways In wlich unlversilies dev•knp gr8thJates l￿de rarrfJe of skn'lls and attrbbules fN $l￿cess in the future 8¢Crf￿rnY. A strong Scottish front in the UUK'Gotting Rwth, onpavw. P￿thnIng ScotLgnd'8 unl¥¢rnit as kty drlvers of poStyndeM￿ recovery. Profound inllu8nce on th8 S￿rt￿h Fundlng Councll's rfjv￿ of hyher education, l•ading to publication of a report that Str￿ty affwrff6 unl￿￿{19•, o)nffibulknn to th& recovery and challenges g(Nemment to SUPF4Yt th8L FIMANCIAL REVIEW R•vl•w of posltSon at th• •nd of th• yo•r Th& $1otemenl of flnanci81 adiwties for the year IB sat (Art on page 12 and th• bal&nc8 8heet on page 13 of the financial ststoménts. Inc￿8 8fKI expeTh11ture for Ihg year and FY)SitiM al thg yow summ￿Sed below. Unrnslrfcknj Restricted Total 2021 É'ooo Total 2020 Inc￿¢ Exp8ndilurB Net movement in fur Funds brought fcTha Funds carriod forward 1,025 1.174 1, 154 167 (181 105 87 (44} (62} 427 365 31 278 427 Unlversltw Scotland reF<Jrts a delklt on ￿restricted a(alvlUes of£44,(KIO. Tr¥$ is ￿f￿lty because of provlsbn made for estimated dilapidath￿8 Gosts ass¢￿ated with the end of US'5 lease on its ¢urr&nl premi888 In July 2022. This is a planrnd draw ￿ re¥wves, the ddapiOgtiM$ provi￿￿ wll be split over 202(￿21 and 2021-22. Prlnclpl fundlng source Membership subscriptions aThJ a ￿1 frL¥n UrM4wsiiies UK out of Its T￿b$criptionS pmwd•s mosl193%} of the unrestri¢18d irthme. The balance comes mainty from I￿￿nce fe9$ for occupying spare desk space 8niJ other minor rwmbursed expenditure. Income is used ryinc4P81ty lo support tharil8tAe activities. Univefsities Scotland does not fundr8¢se frwn thé and is therefore noi registered with the Fundraising Regulator. Univgrsitw ScoUarKI: FiiwKig5 statam8nts the year ended 31 Juty 2021

R•port of th• m•mb•rn for th• y•w •nd•d 31 Juty 2021- contlnu•d Slgnlflcanl •v•nts affedlng fln•ncl•l p•rformance and pwltlon Thore were Tr) signifKant events aff￿ting Fwformance or Frf)Stb￿ in the yew. Flx•d M8•ts The changes lo tangille ftxod assets dufhvJ ts year are i) Th)te 7 to the finan(x81 ststern￿ts. Inv￿¢M•Tr¢ pollcy Universities Scoll8nd tAan8 slrat&3icalty over a three-yeer time hyizon and bu&Jets annually to expend substsntlalty all anticip8ted unrestrl￿ed income. SW lo relalnlry a txudent amount In r868rves. 11 has pern￿nant erKI0￿n￿l provkJes for capltol expendolure frcffi unresthctéd r8serv8s. Unbversities Sc¥Aland has no InVest￿ts. Its funds are Jministered on its behaN by Unimirsitios UK. Prln¢lpal rl•k• and unc•rtalntl•• Th& Mom￿r5 keep under re￿eW the stral8gt ar#Y t)p•rnth)nal risk8 facing the oryaM8tion tQ9ethor wllh the programme5 and vA)ith help manage those risks A¥ a membw5h LYganSsalkn, Unlbrsllfie8 ScoUvJ'• winc1￿ nsk is I￿li￿j to rospond adequaldy to dovelopm8nt8 in hvJher oducatK)n p￿¢Y and funding or to its m8mtsr8' needs. which would risk damage to ils reputation 8nd influence and a possiblo loss of members and subscripbon revenu8. Horizon SC8nning and m8mber feedback m8chani$ms are in K4ace to mininise mib"98te this risk and other extemal flnanclal and opernlonal rlsks uncwtainti89. A risk rgs¥stsr 18 maintslned of all signjficant riyJ($. i￿luding 9gnwal ¢)Fwalwl and finandal rlsks as well as the principal rtsk idenliffied above. Thgse ore regulorfy re￿8¥￿1 ￿ updalod. Sultable ￿sk m61igo1&)n slr8tegies are in place and are adaptad acC￿ding lo chwwing needs. R•••rv•s pollcy The Iruslees have revitiYd Ihe requirements for free reserves lunrèstricteA1 la8s any 8mounts degnated or Othe￿1¥e commtttedl in the light of the princap81 $tr8tegic and oper8t¥ig risk8 to the organls8tlon. a5 OUtlln8d above. The policy to makntsin 4 mod0$1 re¥erve ¥uffici?nl to cover oxpendlture and to en$uffj orgonwts'onal resI1￿nce is still COr￿lder8d &pproprl8t8. Since ¢rf th8 org8nisatlon' income is derived. direcuy or indirecuy. from M￿nbershIP sUts¢rpti￿$. the Membws do not consider It aFpropriote lo c8ry reseryes teyond a level regard￿j os a prudgnt minimum. P•rfornMnc• ag•ln•t Unlv•rnhlw UK'S group rn•èm• polky 2021 2020 T¢Jt81 unrostricled reserves Committed to fLxed assets Free rese￿$ Totsl unreslri¢ted expen¢Jiture Months of unrestricted expendtture in free reseNes Morrth8 (tsrgetl 277,891 125.9041 251.987 1,069,300 2A 4.0-&0 322, 140 (48,597J 273,543 I.￿3,273 3.3 4.0-&0 ring the finatKial ye¥ Uriv&¥bos ScoUand'$ wr9strkte(i T￿pIeS feR Inclus*)n of 8 dil8pid8tions provi8ion. 6 UiwversitM Scolland.. FinwKial ststements tho year end￿1 31 July 21r21

PLANS FOR THE FUTURE Str•t•glG Plan 2021.24 At the tlme of vnibng, Univérsitss Scou￿d is flnalisirKJ a new Stratsgic Plan. an itensive thalcgue wrfh members and stsff. Thi5 expected to refrgsh Univer5bties ScotlarKI's eommitments to campalgning for Fmghquality hh3h8r educatiorb. p￿tiOn1)g higher educalon as a key (triver of recov8ry and transformabon. 8rnJ a kader for knvand. It is 8Iso exp8clèd to Identify 8reas fcf thanged pract￿ in how stsff and mwnbors and ￿ rolat1￿Mp bet1￿7 the kadershlp rokn ol members and staff. Within 202142. q)eration81 will fc#X8 on Campa1￿ th8t $￿pOrt unlvwsStlg5 to make thelr frjl soclal, economic 8n¢J cJKural contrfjbution lo posI*￿arn￿ rKovery. Unrversitiès Scotland is dso wrnnty ￿3￿1n9 foran acc4JmmTrJoticn MO￿ ty Juty 2022. to support ngw ways of vh)rkiffj 8nd reloa8e re8oLYCW rrinveslmenl Sn stralry￿ wl¢yill¢8. Universibes ScottwKI.. Finer￿￿ Statern￿ the year 8ThJed 31 Juty 2021 7

R•port of the memb•rs forth• yow •nd•d 31 July 2021 * Contlnu MEM8ER8' RESPONSIBILMES IN RELATION TO THE Accoupifs The Membors are resp￿￿ble for pyeparino tsAnnual Reixxl andthe finanry81 5￿t￿nents In aLxordanc8 ith applicabla law regulations. Law applkbl8 to Chafilies in Scouand wilres the Members k• prepare &tJ)urts for each fmndal perlod whth give a tru8 ofKI faif view of the stste of affalrs of thè ￿ganiSation and of the excts5 of expertitur6 over income for the p￿. In Ihose aG¢ounts. gonwally accapt&l accountlng praCt￿e requires that the Membets.. • seFect $vllBble acco￿l￿g aThJ Ihen 8ppPy them (ynistenty. • observg the meth(wJs and tKinciples in the Chor￿e3 SORP.. ake judgements 8nd estimates that are re050noble and p￿denl stale vknether ￿lCable aGcwnting Stsr¥ja￿S have been follch%d. 8ubJ"e£tto ￿ M91er￿ dep8rtur88 disch)sed and explained in Ihe finoncl81 statements,. and epare the finandal StsteM￿ on lh8 golng ¢>)n¢am b4$1$ ￿lesS it 18 inpprcprf8te to presum8 that the oryanisation will conb'nue its ￿tI¥ll18$. Thg Member8 are r¢Spon￿tIe for kwig wopw al￿1n￿ records. vA)k dBclose with reasonable accuracy 8t any lime the fina￿la1 p)slllon of the Or9￿158￿0n and enablg them lo ensure that thè financial slalemgnts compty with the ch￿1186 and Trustee Invè5tmanl IScoUand} Act 2CO5 and tha Charities Attounts Iscollandl Regulab'ons 2006. Tlw are also resp¢)nsible for safeguardiw the assèts of the 0rganls8l1￿ aThJ hence for tskirKJ rgasonablo slops ts the prevwtion and deteciion fraud and oth¢r irregu18ri11es. Audft¢r Haysm8cintyre LLP hos Sndlcal&J Ils ￿ningle$S to conlnue As •udlior. %)Ject to re-8PP)Inknenl at the next UnlveT51118s UK annual general meetirB. AprKo4d by the Mgmbors aThJ s￿ne0 on beh81101 the Mombws ￿ 28 (ktob9r 2021. mber 8ThJ C¢)nvener Oir8Gtor 8 Universilies Scollarwj: Fnancial ststements fcf the year ended 31 July 2021

Independent auditorfs report to the Members of Unlversities Scotland Oplnion We have audited the fin8nu81 stalements of lh8 UnNersllles se￿nd f¢Y the year ￿ed 31 2021 comprise Ststement of Financial A&i¥ibes. the Balanee Sheet, Ststement of Cash Flows and notss to the financi81 stslements. indudiNJ a summay ofslgnfftanl accounting pol￿185. The finewal reporting fr8m8work that has been appl￿d in their preparnti￿ is 8pplicable law 9nd Unf(ed ￿ngdoM Accwnung Stsnd8rds. inclL#Jing Financial ReFKJrting Stand8rd 102 The Finon¢lal Reportir& Standwd aw4Kal)18 in the UK8TrI Republic oflrnland Iunlbj lQnkJom Gerwally Accwiling PFactsek In our opirion, the financlal ststements: give 8 and falr of stste of the chwlt8b￿ ccryany's affairs a8 al 31 July 2021 and of the charrtable company's Ml movement in (unds fcf Ihtr year then ended: have been pmpoty prep¥ed in atcoftlaui Uniled lQngdom Gener8lty Accepted AcLx)unti Practice,. and have been prepared in ac1￿ month8 from vthen the fingnGi81 statements are authorised for issue. Our rgswnslbilttles and ts responslbllllos of Ihè trust888 4th respgct kn gcirwj cortem are d88crfjbèd In the rebvanl secoons of this rew)rt. Oth•r Inforniatlon The trustees arè responsble for ihg olher infom￿l)n. The ollKr infom)elion compdges the Infomatlon included in Iho Trustees, Rowt. Our ownion on the ffinandal siatements d$ not cover the other infom)8tion aThJ. exeepl to extent olfthvise eXpI￿ldY stated in our report. ￿ do not 8xrKes$ any fomi of assurance C￿l￿10n thereon. Uni¥¢￿tIeS Scoland: Finanoal siatements fi)r the year 31 July 2021 9

Independent auditorfs report on the financial ststements for the year ended 31 July 2021 In (x)nnection with cyjr audlt of the financial statements. ow responsfblllty is to read the other nfomiatk)n 8nd. in dolng so. ￿nSider whether tt19 infOrMa￿n 1$ mal8ri81ty In￿nSistenI ￿th the finonckql ststements or cur knovlen. 11. b8sed on the work we have ptrforned, con¢kn that Ihere is a material mlsstatement of this other informalion. ￿ are reqtllred to rekyt that faGL We have nothing to rewi in th15 regard. M•ttorn on Twhlch ar• r•qulr•d to r•port by •xc•Mlon We have nothing to re￿t in reSp￿t ofthe fdloving rnatte￿ in relaoon to vthlch th8 CharlU8s (Accounts and Reports) Regulations 2008 and the Charities Accwnts {SCoU￿d) Regulations 2006 require us to rerort to yw rf. in ¢xx opin1￿. loquate aCc￿ntIng rec(￿d8 h•N¢ not been kept by th• p8rent dlwlty. or retumB adffjuate lor r audrt have not been receive(l frcrfn branthes not Visited ty us: suffluent and Fyoper 8co)unling Tecrwds have not W kept or the p8renl carlty fin8ndal ststthnents 8rn not in Sgrethn￿l wlth the o¢counting rgwrds and rotsJms', or wè have not recelved all ￿ wrfornia￿n WKI eWan8b'rrfK% requtre for our 8uthI. R••poMlbllltl•• of try•l•w for th• fln•n¢l•l •tknn•nts A8 explained moro fully in ￿ I￿￿te83. mpon•ibilitiN •tat￿n￿nI set oul on p8g8 8. the tru$tee¥ are reSpon￿ble forthe prep8r81￿ of the financial ststements and for being Sgb'sfied that they gwe 8 true and falr vithv, and for such Internal control 89 Ihe trustees delerThlne Is necessary to enabsg the preparauon of flngnclol slatgmenls thel are free trcffi mater181 mls8t8lement, du8 lo fraud or error. In weparing tho finardal statements, the trustees are resp￿9￿￿ for assegshlg the group's and the parent charlty'8 abSlKy lo corrtinue •s 4 goin9 eoncem, d19cb￿nQ. JB 8ppli￿bI?, mgttgrj rei8ted to going concem 8rKI using the going concem basis of srcountirvJ u￿sS the trustees eitsr inlend lo liquldats thg group or th¢ p•rgnl tharity or to cease operotions. ￿ hove no realistic ollemalive but to do so. Audltof r•spoMlbllltl•s for th• audlt of th• IlnwKl•l •t•t•m l)Jr c4'ectives are lo obtain reason8trAe assurarKe wth6ther the fin8nci81 statements as o WW? are free from Materi￿ mi5Statement. whether due to fraud or error. to is¥u? an guditorfs report that Includes our oplnlon. Reasonabl8 assurarts is a high 18vel of assuranc8, bul is a guaranloe that an 8udlt Cel￿UC18d In 8tLord8n¢e with ISAS (UK) will detect 8 mgterial misstslemenl ¥then it exists. Misslalemenls con arise from fr8u(l or error and are consdered material if, individuany or In th8 aggregate, W coukl reasonably be expecled to infil￿￿ the e(xx)omk deci8k)ns of u88r8 tsken on the basis of these finonciai $tstem￿ts. Irregularities, including fraud. are instances of rK￿-CIjnpl￿ance with laws and regulatlons. We deslgn ocedures in hne with our respon&bilities. ¢Jullinéd st￿￿. to delecl materAI misstsl8mants in respect of irregularities. including fraud. The extwrt tr> which our procedures arg ￿pable of delecting irregularilies, induthng fraud is dets￿e￿ b8knY. Bosed on undwslan¢Jing of the d￿rItable ￿)MpanY and the en￿rOnment in it operates, we identified thal the wnapal ri5k5 of rKJn-c4xnpliance WTth1th5 and wulalion5 rplated to H￿Jher Education Govemance {Scotl8ndl Act 2016 and Cc￿ld￿ed the extent to vkdch non-complLqnL* mlght h8ve materi81 effect on Ihe finarKial statements. We also cons¥Jer8d those LM and regulatKJns that have 8 dkecl impact cfi the preparation of the finanaal statements sl￿ as the Charrtres SORP 2015 and the Charities Acg)unts IScollaTrJ} Regulatic￿ 2006. ar¥J consKler other fadors suth 05 5al8s tax. 10 Univwsilw s￿tjOnd'. Fin￿￿la1 sts1eM￿ts for the year 31 Juty 2021

Independent auditorfs r•port to the Members of Universitles Scotland We evalued man4amenY$ incentr￿ opwtunitw for fraKlulent Manpu￿￿n of the financhil stst8ments linduding the risk ofov8rride of controls). and determ￿ed thatthe risks there related to posting inp￿0priats ioumal entries to inojne and managemerrt Iy0s in accounting 89￿MateS and judaements. Audit wctedures perfofmed by the LYvJwent tsam h￿Uded. IrtspedThJ correspond8nce 7Afjlh regulatots 8r•J tax auihovllles., tliscussvJns wilh man898menl Indu(l￿g ¢￿Sid￿aliC￿ of krthvn ¢x SuSp￿d instances of non- ¢￿p110nce th L8vts and regulallcffl and fraud.. Evaluating managThrf8 ¢ontrol& deswJn&J to wf4ent detect irregularitM.' Id8ntlfylllg and testing joumols. in parti￿lar IM)al entries posted ¥%ilh ￿￿8U81 account binations. posllngs by urnJsuo1 users or wth unusual d8SCript￿)ns,. a￿1 Chall8ngirKJ assumptii)ns and lthlgements made by mawmént In thetr critKd 8a￿untIng esllmatés A fvJrlh8r de8crtptlon of our rospowbllbbg8 tor ts au(It of th• finandal statements Is I¢￿￿ted on the FwIc￿l Reporting C[￿nG11, web•it• •t'. . This d8scnptity) fomB part of our rwrL of our r•port Thbs report is mwJe solgty to the charftsble ccYnp8nls rn￿bers, 88 8 boty. In Chapter 3 of Part 16 of Ihe Comp9nies *£12006. secllon 4411 X¢) ol the Charities 8nd Truslg8 Investment IScotl8nd) Acl 2005 and regula1ion 10 of the Chantles Acc4JJnl$ (Scouandl Regulalions 2006. Our audit vrk has been undertaken so thal w8 might stat6 lo the ch8ritable ccffnpanys members those m8tters we Ore required lo stste lo them in on Audilorfs report and for no other purpose. To the fullest extent pemitted by law, we do not accept or assiffm reswslbAIty lo anyone other than the thorlt8b16 company and the ch8ritsbb company's members 85 a Imxly. for our audlt work. for thls report. or for the oF4'n￿)fi5 * have formed. Haysmoc4ntyre LLP Statutory Auditor Dale". 18 Noveth 2021 10 Queen StrMt Hace EC4R 1AG Haysma(antyre LLP is eligib￿ io act 88 wditcr in tsmis of Sedion 1212 ofthe thmp8ni8s knt 2006. Universltles scotla￿1. Financlal stateM￿ts for th8 yaar arKled 31 July 2021 11

Statement of Financial Activities for the year ended 31 July 2021 Totsj 2021 Tol81 2020 Funds Funds Incom• and ￿P•ndItUr• Incomo from: Incom• from charllabl• actlvltl•• . Subscriptions ir￿lItU110 . Grant incomo 6X),817 318.831 59,800 88,975 690.617 407,806 630.817 441.873 Ral•lng funds Tol 75,403 1,025.OS1 75.403 1,173,826 81,223 1. 153,913 148.775 Exp•ndlMr• on: Charlthbl• actlvltl . Actlvrtles for m&nbors 1.014.554 1e6,840 1,181,394 1.064.351 R•l•lng fw Totsl 54.746 1.069.300 ¥746 166.840 1236,140 59,058 1. 123,409 N•t moYAm•nt In fund• {44249) 118.065) 3Q.504 Total lurvjs ￿ght fop•vard at 1 August Total funds carrbed foThwd ot 31 Juty 10 426 823 l items ShCh￿ above relata tr> ¢onlinuing acllvitses. Th•ro are rbQ betrA*en the amounts shtr•m abM and ts hlst¢yic cost eqU￿1￿nts. The Mte$ ¢)n poggs 14 10 21 fomi part of th08e fingnc¥al statements. 12 UniveNbes Scolland: Pinanual statements f￿ th8 year grKknJ 31 J￿Y 2021

Balance sheet as at 31 July 2021 2020 FIXED ASSErs Intsngible fixed Issets T8ngble fixed assets 3.830 44,767 48,597 25,904 25,904 CURRENT ASSETS Debtors 488.106 413.097 CURRENT LIABIUTIES Creditors: amounts fallirKJ wthln on8 y (34.871) NEf CURREpif A3SErs 338.OOS 378.226 TOTAL NET ASSErs 426.823 FVMDS Restrctsd furbd5 Unrestrbcled fund8 88,618 277091 364,509 104,683 322, 140 428.823 10 Th8 notes fan p8g68 1410 21 Icrfm pwt of these fin8n(aal Statem￿ts. The flnanclal stalemgnts on pages 12 to 21 were apFrfo%*d by the mernb8￿ aryl authori$8d for issue on 28 O¢tobw 2021. Spaned on thelr behalf by.. Unpmsibes ScoUar¥J: Finandd slatements forthe year ended 31 Juty 2021 13

Notes to tha financial statements 31 July 2021 Sl•t•m•llt of ac¢ounllNJ polldes Basis of pr•pararfon Und8r the temis of the Agreement estab&shing the organisation Iformany subscribed by memb8r institutions In 19941951 financial statements must be Fryared in accordanco with ihe Chariti8s A(xounts (ScoU8ndl Regulations 2006 aTrJ the Chariti￿ SORP 2015. Th& charity is w1nw￿led and me the definltlon of a publie benefft entity urKler FRS 102. The folluwlw accounting polloes hav6 ten aw11￿ ¢ons• in deofing with items vthith ara considered matsrial to the fInar￿4a1 statevngnts. Crftle•l accountlngludg•m•nts and •sllm•tes In preporirvj these financkql statements, manag8m8nl h83 mad6 Ilbjgém￿t8. Oslwngles and assumptions that affect Ihe applutN)n of the ch8rttth' &etyJrting poI￿leS and Ihg rgPQrted assets, abilitiés, income and o￿nditUre and the disdosures m in Ihe ffin￿al statements. Estimates aNI judgements are ¢))ntinug1ty evaluated and are based historic eXpWien￿ and other f8Ctors. udlng exp¢Gtslicrnoflutwe evenls ttwl we bdleved to be reg8onable underthe drcum8tarms. Pr•p•r•don ol th• a¢￿￿nts on • qolng conc•m ba1$ The Members con8pJerlhat Ihere are no materlal uncertaints aboutthe eh8rity'$ abiltyto Continue as a golng concem. The Memtws have considered the imp8d ofthe Covtd-19 pandemic. reV￿d financi81 FM)si1Son, reserves levels and fulure plgns and has gfven the Membgrs confidence that the charity remains a 90ing concem Into Ihe fubJre. Irthme from grants contr8Ct8 (Ind￿￿￿9 go%wnm•nl grants) 1$ r¢¢Ogni￿1 ¥tsn there 18 evldence of entltlement. f￿1p1 18 yobèble and its amount can te megsured reliably. Subscriptlons #re recowd over the to relato. Oihef IrKome is rwnised ¢)n an accruals basi5. Exp•ndltur• All expendllure 1$ 8¢¢ount•d ts on 8n basls and has been da8slfied under headlngs that aggregate 811 ¢o$ts rdgling to th81 catggyy. Whoro costs connot bg dlrectly attrlbuled to particuL4r headlng. they have been alloc8ted lo activrfies cm a basis consislenl wlh tho of the Vdu• Add•d Tax Irrecovernbfe Valuè Athj￿ Tax is chorged to the slatement of financLql athrtlgs as K18 kncurred. Flxed •wls Individual assets with a co81 in exc•s• of 92,5￿ are c8pitaled. L8 appllad lo ￿te- off tangible fixed assets on a str8ight-Ilne th8SiS as fdlows: Fumliure 8nd equipment Offic& technoh)gy linckKllng W￿1 dèvokpmtht) Leasehdd improvéménts Cfver 4 yoors Over 3 yews Over the lrfe of the lea88 The tharlty onty has ffinandal assets and liatslilies of 8 ￿nd that qualfy as basic finonTh81 inslwmenls. Basc finarKial instnjments are initk?Ily rewgrmsed al transxtlon value and subsequentty measured at their seluement valu8. tiabilities arg rwnised on an accruals basis. C•sh Ilow $t•t•m•n¢ Universities Scouand 1$ not Teqwed to weparn a cash I1￿¥ slatsment as Lknes not hold cash or h8ve a bank 8CCOWIt. Un￿￿81t188 Scotland: F#la￿l81 ststements fc* ts year ended 31 J￿Y 2021 14

Creditorn and￿￿￿10￿$ Creditors and provi510ns are recogimsed bthere the charrty had o present oulgallon resulting from past event that ￿11 tKobabty result in the tr8nsfer of fvnds to a third party ￿ the amount due to seltte Ihe obligatKJn can be measured or eslimated reliabty. Crgditors and rrrisions are n¢)nnalty recognlsed at the￿ Set￿eM• amount after alloryng for any trade discounts due. Rental costs under operalrvj leases are cherged to tho $tstam•nt of financial actmtss In equal {￿ts over th¢ pwlod ol tho leas8 Employ•• b•n•frt¥ Staff are employed by Unlversltss UK ￿)Sts rvdwged to Univer8iUes ScollaThJ. l)et811 of nsion pthemes gnd ￿p￿Ye0 tnefits are avall>l8 In Ihe finwKial ststements of Unlver811108 UK Subscrfpdons from In•lltutloM SUbsc￿pt10ns are for the yegr from 1 August lo 31 Juty. renthvJ annvamy, and are on Instiiution$ lo contributè to Iha nJnnlrrfJ costs of Uni￿rE4t10$ ScottarvJ using a formuLq prescribed In the Agreement. Un￿ersIt￿$ Seodand Main Committee docides 8nnuaty wthelhar to vary the subscription rnto %•thlch 18 varfed by a fixgd percentsge 8pplled to exh member. 2020-21 a restricted subscrlpllon was raised l¢yMrds the S¢>)d8nd Is Now intwnatlonal cwnFn. See note 10. ar•rt In¢om• Fwds 2021 Funds Funds 2020 UnlverslO•s UK S¢x4bsh Funding Councir Scotlsh Gmmm•nt' HMRC. 318.380 318,360 47,900 41,075 471 325,206 325,206 74000 41.667 47.WJ) 41.075 75,000 41,687 471 325 206 116 667 441 783 ' furKls TocivthJ from govemment or goverrwnanl agwths. R•llng fund• Cclnpriges income under li¢once agre8ments fLY use of 8urplu6 desk sp￿. and reimbursed costs. Total •xp•rKlltur• t￿¢￿ Supptyt osl$ Tol81 2020 RaI￿n9 fund8 47.748 4746 054 59,058 Charft•bh a￿1vIti Activltles for membe . Scoy8ThJ - trrt¢malM)nal Totol th8ritst4e 704,886 309.86B 1.014554 160,682 6.158 166.840 865, 315.826 1,181.394 666 258.549 944,215 113.867 6,269 120. 136 799.S33 264,818 1.064.351 T¢Aal •xp•ndlturn 913,316 322.824 1236.140 852.587 270,822 1.123.409 UniveTwb8s Scouand: Fknancial statements for tho year wxded 31 Juty 2021 15

Notes to th• fln•nclal •l•l•m•nl• Iconlinu•d) Total •xpwditw• {contlnu•d) SuPp￿t ¢o#t all¢xi( Total 2021 Ral•lng funds 4.581 1,175 Charltabl• acovhl Scoll8nd Internati¢￿al Tot•1 Support costs 200,586 28.695 27.388 S3.019 30#,￿8 Total 202Q R•l8lng fvnds 3,525 I,IT8 Ch•thable •etlvlV•• Sco118nd Inlemafvonal Tot•1 •upport costs 149, 130 30.9 2q495 51,971 258,549 270 822 2021 2020 Extemal ￿it Other professlonal fees Staff and other costs 3,744 12,000 16,055 31.655 16,227 29,331 Total expendrture also iidudes the foLhThing op8rnting ￿e ￿￿1￿1￿. Land arbd ￿lId1￿8 OffirA equlpment 123.340 3.687 131.042 3,831 16 Unfversllies &*lland: FinarKial stateM￿ts fty the Y￿ end8d 31 2021

P4oto8 to the finwKl•l stat•mnts Imnllnued) Flx•d kntanglbles: Ta￿￿bkn.. Wites Lease Ewipmenl FurThluTg Total Al 1 August 2020 Addibons Written off Al 31 JUty2￿1 31.448 1￿.075 43.935 5.280 {20.382) 28,833 42,575 278,033 5,280 {20.382) 262.931 31.448 1￿.075 42.575 D•pr•GlaUon At 1 August 2020 Chwge for the year Written off At 31 July 2￿21 27,818 121,912 19,081 37.331 42.575 229.436 27.973 (20,3821 237.027 120,362) 22,011 31.448 140.993 42,575 N•t book ￿lu• At 31 July 2021 At 31 Juty 2020 19.082 38,163 25,904 48.597 3.830 D•btor• 2021 2020 Receivab￿ from Un￿1¥11188 U Propaym￿ts a￿u&$ IrKom 419,179 88,927 486,11XI 379. 108 33,989 413,097 he arno￿t r8¢eNab￿ from UnNersitles UK roprosents thg cash held by UrawslUe¥ UK on behallof Unfversltl¢s ScoJarAI. Cr•dftor¥: amounts falllThJ du• wlthln on• y••r 2021 2020 Trade credltors Accruals and defeffed in¢¢Mne 22,299 12,572 34,871 109,905 149,501 IIKI￿￿ed ￿thin acmls 8nd defefred ig a £75.1￿ dlapNJatKX)s provlik￿. 18 UnNersilies S(x)liarKf.. Finaroal 5tatsments frK the ￿ ended 31 J￿Y 2021

Twstee and •mploy•e Infonn Trnstee Infomjalion No r¢muner8¢k)n (Y expenses were paid to InJstse8 dwlng tha yw (2020.. none). Employee costs were as f01hy￿. 2021 2020 Sglaries irK4uding beneffts In kjnd Sodal securlty C)sts Pen8lon ¢ontributions 578.4B6 59,922 150,888 789.296 559.029 58,591 137,201 754,821 Avèrsge slaff num￿15 anatysed by categijry V•pre: 2021 2020 Olr8¢t ¢haritsbkn actmty 14.0 2.0 16.0 13.0 15.0 The numbèr ofemploy¢¢s omoluments fty the year fell %%lthln the folhJvlng band In eXC￿S of £60.OIXI was.. 2020 £60,001- £70,000 £90,001- £100,(th) Th8 total emther penskm CL¥thbullons for the hlgher pald Staff above is £32.99412020. £32.5771. The totsl employee benefft¥ oflhe Chlel Execu¥ve wtho18 to be key m8n8gement personnel (In addttbn to Irustses) was.. 2021 2020 s￿ary including benefits in ￿nd s￿al 8ecudty costs Pension conlrt*ulic419 93,563 10.425 19.570 123.SS8 92.869 10.390 19,323 122,582 UrM¥ersties Scy)IFand: FinarKxal 51atern￿ts fLY the year 8nd&J 31 July 2021 17

1. Movement in fvnds At 1 AugL*I rrKoming ResLK 21Y20 Resour￿ Expend￿1 beN¥een Ai 31 July fvnds 2021 Unr•strkt¢d fvnd• General rwer¥e 322.140 1.025.051 (1,069,3iJ)) 277￿91 R••trlcl•d fund• Intemational actimlies Scottlsh Funthng Courdl Scot118h Govemmont Scolland Now 1(Kl.143 47.900 41.076 59,8(M) 148.775 1,173.826 {61.4251 145,815) 1%,8001 {186,840) (1236,140) 86,818 104,683 426.823 86.618 364.509 Totsl fund• Transl8t3 b8twe•n Al 31 July fuTrts 2020 Al 7 Augwt IneonNng 2019 Ras¢xxc8s E¥pendod Unrnstrkt•d fvnds Goneral r8seThe 284187 1.037.248 (1,003,273)
2. 140 Internatffjn81 actlwt Scottlsh Funthng Coundl Scothsh Governmenl 94.585 13,587 108, 152 396.319 r69.422) (50. T14) (120, 136) (1, 123,409) 100, 143 4,540 104,t883 426,823 41.667 116.667
3. 153,913 Total ffunds R••trlctsd fund• Scoth$h Fundlng Coun￿1 FundSng to support thg ¥￿tOr In improving Its posibon in thè global hi91￿r e(knation m8rkel aThJ identfying OPPCrtunrties to improvo s¢￿￿nd's ¢￿tr￿Ul￿ lo arKI rmpact on wrtemational hfv3h8r education more g8nfjralty. Scottish Govgmmenl Funding for a post whth $UFwrts Ihe Cwnected Scolland parthership aThJ those projects delivgred as part ol il I￿se￿ on addirKJ valug lo the intwnatlonal a￿1[3110n5 of the Scoth'sh sector. Scotland Is Now Jolnt sector funding that sUFF￿S ts1￿ ￿ld-for S￿la1 media wnp8ign In o set offows countries to support the recrurtment of Inlemational students, lo Ir￿Se the sectorfs positioniro and awa￿￿eSs. and to extend its fc¢us on beir•J ￿lCoMe and OFen. UnNersiti85 ScoUarKI: Financlal ststements for the yetr ended 31 July 2021 19

Not•8 to th• flnanclal stat•m•nls (¢onUnu•d) 11. All(￿￿10n of net ass•ts bot¥rnw funds 2021 Totsl fvnds Fixed assets Current assets Currenl lialmlilies 25,g¥)4 25.904 107,199 380,9)7 48B,106 (20.5811 (128.920) 1149,501) 86.618 277.891 364,509 2020 Total funds fvnds Flxed 8ssets Cu￿0n1 assets Cuffent lithlits88 48,597 294,467 (20.924J 3r2. 140 44597 413.097 (34.87t) 426.823 118.630 {13,947J 104.6 12. Op•rntlng l•u• ¢offlmlim•nt• Universlties 8¢oY8nd hod ts fotkn•ing future minim￿￿ lèase p8y7n4￿ts mjer non48r￿lIable operafjng leases eath of Iho perKth: Total 2021 2020 Land and bu￿1r￿.. . Wlthln one year . Bets￿en one and fvo years 116.227 126.258 116,227 Officè ewipment.. Wlhin one year . Belvmn one 8nd fve ye8rs 3.039 1,118 3,094 4, 105 120.382 249.734 13. R•tlrnm•nt b•n•fft• Staff are 8mployad by UniveNties UK ar*J ts)sts rechargad lo Universities Scotland. Universities UK participates in fvdo pensw schemes.. the Universities Superannu8tion Scheme IUSS). and lh8 Superannuation Arrangements of the University of Lond(￿ (SAUL}. Furtherdetails of thes8 schemes are avallable In the finar￿al stst￿ents of UIivw81￿ UK. 20 unl￿118S Scotland: FirAnc481 statements the year eThled 31 July 2021

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