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Strategic and financial Statements 2019:Director's Report

DIRECTORS’ REPORT

Directors’ and officers’ liability insurance

During the year the University maintained a Directors’ and Officers’ liability insurance policy to provide cover against any civil liability attaching to Court Members or Officers of the University in connection with their University activities.

Members’ liability

The liability of each member of the University upon winding up of the Company is limited to 50p. Distributions to members are not permitted by the Articles of Association of the Company.

Employee involvement

The University recognises the benefits of keeping employees informed of its financial and academic performance. Information on matters of interest to employees is given through a staff newsletter, through staff briefing sessions and through regular communication from the Principal. The University operates a performance enhancement review scheme which is open to all staff.

Employment of disabled persons

The University’s policy remains to afford equal opportunity to all, including disabled people whether registered or not, to apply for employment and, during employment, to receive the support and development they require to enable them to make a full contribution to the University.

Creditors’ payment policy

Unless special terms are agreed, it is the University’s policy to pay invoices 30 days from the date of the invoice (in accordance with the CBI prompt payment code). In agreements negotiated with suppliers, the University endeavours to include and abide by specific payment terms. At 31 July 2019, trade creditors represented 31 days of relevant expenditure (2018: 35 days). Interest paid under the Late Payment of Commercial Debts (Interest) Act 1998 was £nil (2017/18: £nil).

Going Concern

The University’s activities, together with the factors likely to affect its future development, performance and position, are set out in the Strategic Report, which also includes information on cash flows and borrowing facilities. Demand from students for the University’s courses remains strong. Consequently, the University Court believes that the University is well placed to manage its business risks successfully despite the ongoing, uncertain economic outlook. As noted above in the strategic report in the section on management of principal risks and uncertainties, the Court has assessed a particular risk around an anticipated breach of the terms of one of the bank loan covenants when measured against the 2018/19 financial statements, and has taken into account the receipt of a letter of variation from Barclays, received prior to the year end, confirming that it will not test this covenant at 31 July 2019 and that the measurement of this covenant will be varied in the subsequent three financial years, such that compliance with the covenant will be achieved so long as the University meets its financial forecasts.

The Court has taken assurance from the provision of this letter in reaching its conclusion that the accounts should be prepared on a going concern basis.

In accordance with the recommendations from the Higher Education Financial Sustainability Strategy Group (FSSG), the University Court undertakes a formal annual assessment of the University’s financial sustainability. The University Court has also undertaken an assessment of going concern and liquidity risk, taking into account the principles and recommendations set out in the Sharman report into going concern and liquidity risks. As a result of this exercise, the University Court has a reasonable expectation that the University has adequate resources to enable it to continue in operational existence for the foreseeable future, and that it is appropriate to adopt the going concern basis of accounting in preparing the annual financial statements.

MEMBERSHIP OF THE UNIVERSITY COURT

Name Appointed Attendance Record Role

Dr Frances Dow CBE

(Chair)

Appointed 17 March 2016

5/5

Former Vice Principal, University of Edinburgh

Linda McPherson

(Acting Chair)

Appointed 1 October 2014

5/5

Former Senior Director - Food and Drink, Tourism & Textile, Scottish Enterprise

Elaine Acaster, OBE Appointed 28 June 2017 5/5 Former Vice Principal, Royal Veterinary College,

Carolyn Bell

Appointed 1 October 2016

5/5

Solicitor

Professor Richard Butt

Appointed 1 September 2016 5/5 Deputy Principal

Professor Graham Caie, CBE

Appointed 1 December 2014

4/5

Former Chair, National Library of Scotland

Ìý

Governance Committee, Vice President of the RoyalÌýSociety of Edinburgh

Colin Cox

Appointed 1 October 2019 0/0 Nominated Trade Union Member – Support Staff

Karen Cullen

Appointed 1 June 2019 1/1 Elected Support Staff Member

Colin Duffus

Appointed 1 June 2016
Retired 31 May 2019
4/4 Elected Support Staff Member

Dr Anthony Falconer, OBE

Appointed 1 October 2013

Retired 30 September 2019

5/5

Retired Consultant Obstetrician and Gynaecologist.

Former President Royal College of Obstetricians and Gynaecologists.

Dr Maria Giatsi-Clausen

Appointed 1 October 2019

0/0

Nominated Trade Union Member – Academic Staff

Sir Paul Grice

Appointed 1 October 2019

0/0

Principal & Vice-Chancellor

Ex Officio

Cynthia Guthrie Appointed 1 December 2015 3/5

Joint Managing Director, Guthrie Group Limited

Dr Arturo Langa

Appointed 1 October 2019

0/0

Consultant Psychiatrist, NHS Lanarkshire

Francis Lennon, OBE

Appointed 1 October 2016

4/5

Former Head Teacher

Jacqueline Macdonald

Appointed 1 October 2013

Retired 30 September 2019

4/5

Partner, Small Green Spaces

Ruth Magowan

Appointed 11 December 2017

Retired 31 October 2020

5/5

Staff member, Appointed by Senate

Ken McGarrity

Appointed 1 October 2016

3/5

Former Finance Director, Nairn’s Oatcakes

Chiara Menozzi

Appointed 10 June 2019

3/5

Student President

Melanie Moreland

Appointed 1 January 2018

5/5

Senior Manager/Delivery Manager, Royal Bank of Scotland

Margaret O’Connor

Appointed 1 October 2014
Retired 3 April 2019

2/3

Chief Executive, Art in Healthcare

Robert Pattullo

Appointed 23 May 2018

5/5

Start-up Company Mentor. Former Vice-Chair Citizens’ Advice Edinburgh.

Sarah Phillips

Appointed 28 June 2017

4/5

Solicitor

Elizabeth Porter

Appointed 1 October 2019

0/0

Chartered Management Accountant

Stewart Sands

Appointed 10 June 2017
Retired 9 June 2019

4/4

Student President

Dr Eurig Scandrett

Appointed 1 December 2016

5/5

Elected Academic Staff Member

Dr Andrew Scott

Appointed 28 June 2017

5/5

Director of Population Health, Scottish Government

Professor Petra Wend

Appointed 1 September 2009
Retired 31 July 2019

5/5

Principal & Vice-Chancellor
Ex Officio

Dr Laura Young, MBE

Appointed 1 October 2016

3/5

Founder of the Teapot Trust

Andrew White

Appointed 10 June 2019

0/1

Student Vice-President

Rebecca Wilson

Appointed 10 June 2018
Retired 9 June 2019

4/4

Student Vice-President

Membership of University Court Committees during the year to 31 July 2019

Audit and Risk Committee

Name Appointed Attendance Record

Professor Graham Caie

Convener,

4/4

Elaine Acaster

Ìý 3/4

Carolyn Bell

Ìý 4/4

Dr Anthony Falconer

Ìý 3/4

Finance & Estates Committee

Name Appointed Attendance Record

Ken McGarrity

Convener

4/4

Dr Richard Butt

Ìý

4/4

Cynthia Guthrie

Ìý

2/4

Linda McPherson

Ìý

3/4

Robert Pattullo

Ìý

4/4

Andrew Scott

Ìý

3/4

Professor Petra Wend Ìý

4/4

Nominations Committee

Name Appointed Attendance Record

Dr Frances Dow

Convener

4/4

Karen Cullen

Appointed 1 June 2019

0/0

Colin Duffus

Retired 31 May 2019

4/4

Dr Anthony Falconer

Ìý

4/4

Jacqueline Macdonald

Ìý

3/4

Linda McPherson

Ìý

4/4

Chiara Menozzi

Appointed 10 June 2019

0/0

Stewart Sands

Retired 9 June 2019

3/4

Professor Petra Wend

Ìý

3/4

Senior Management Remuneration Committee

NameÌý Members Attendance Record
Linda McPherson

Convener

1/1

Dr Frances Dow

Ìý

1/1

Jacqueline Macdonald

Retired 30 September 2019

1/1

Disclosure of information to auditors

The members of the University Court who held office at the date of approval of these financial statements confirm that, so far as they are each aware, there is no relevant audit information of which the University’s auditors are unaware. Each member of the University Court has taken all the steps that he/she ought reasonably to have taken as a Member of Court to make himself/herself aware of any relevant audit information and to establish that the University’s auditors are aware of that information.

On behalf of the University Court

Linda McPherson

Acting Chair

26 February 2021