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 |
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 |
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 |
5/5 |
Principal & Vice-Chancellor |
|
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 |
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
