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 Governance Committee, Vice President of the Royal Society 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		3/4
Carolyn Bell		4/4
Dr Anthony Falconer		3/4

Finance & Estates Committee

Name	Appointed	Attendance Record
Ken McGarrity	Convener	4/4
Dr Richard Butt		4/4
Cynthia Guthrie		2/4
Linda McPherson		3/4
Robert Pattullo		4/4
Andrew Scott		3/4
Professor Petra Wend		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		4/4
Jacqueline Macdonald		3/4
Linda McPherson		4/4
Chiara Menozzi	Appointed 10 June 2019	0/0
Stewart Sands	Retired 9 June 2019	3/4
Professor Petra Wend		3/4

Senior Management Remuneration Committee

Name	Members	Attendance Record
Linda McPherson	Convener	1/1
Dr Frances Dow		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