¶¶ÒõÊÓƵ

Strategic and financial Statements 2017: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 2017, trade creditors represented 35 days of relevant expenditure (2016: 33 days). Interest paid under the Late Payment of Commercial Debts (Interest) Act 1998 was £nil (2015/16: £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 ongoing discussions to agree a waiver of a bank loan covenant, and has taken the view that these discussions will result in an agreement being reached which will allow the University to continue its operations.

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.

±·²¹³¾±ðÌý Date Appointed Attendance Record ¸é´Ç±ô±ðÌý

Dr Frances Dow CBE (Chair)

Appointed 17 March 2016

5/5

Former Vice Principal, University of Edinburgh

The Honourable Mark Laing (Vice-Chair)

Appointed 1 October 2009 Retired 30 September 2016

0/0

Chairman, Nairn’s Oatcakes Limited

Linda McPherson (Vice-Chair)

Appointed 1 October 2014

4/5

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

Elaine Acaster

Appointed 28 June 2017

1/1

FormerVice Principal,RoyalVeterinary College,University of London

David Banks

Appointed 1 December 2016

4/4

Elected member,Appointed by Senate

Carolyn Bell

Appointed 1 October 2016

5/5 Solicitor

James Bradshaw

Appointed 1 May 2010

4/5

Former Deputy Vice-Chancellor (Resources & Business Development), University of Sunderland

Dr Richard Butt

Appointed 1 September 2016

5/5

Deputy Principal

Ex Officio

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

Ian Calder

Appointed 1 March 2011 Retired 28 February 2017

3/3

Former Director, Grant Thornton LLP

Craig Cathcart

Appointed 8 February 2011 ÌýRetired 12 October 2016

0/1

Staff Member,Appointed by Senate

Colin Duffus

Appointed 1 June 2016

4/5

Elected Professional Services Staff Member

Professor Robert Cormack, FRSE

Appointed 1 September 2010 Retired 31 August 2016

0/0

Former Principal, UHI Millennium Institute

Professor Alan Gilloran

Appointed 1January 2010 Retired 31 August 2016

0/0

Deputy Principal

Ex Officio

Cynthia Guthrie

Appointed 1 December 2015

5/5

Joint Managing Director, Guthrie Group Limited

Dr Lindesay Irvine

Appointed 1 December 2013 Retired 30 November 2016

1/1

Elected Academic Staff member

Francis Lennon, OBE

Appointed 1 October 2016

5/5

Former Head Teacher

Jacqueline Macdonald

Appointed 1 October 2013 5/5 Partner, Small Green Spaces

Ken McGarrity

Appointed 1 October 2016

4/5

Former Finance Director, Nairn’s Oatcakes

Miller McLean

Appointed 1 January 2011

2/5

Chairman,Adam & Co Group plc, Retired Group Secretary, Royal Bank of Scotland

¶¶ÒõÊÓƵt O’Connor

Appointed 1 October 2014

3/5

Chief Executive,Art in Healthcare

Sarah Phillips

Appointed 28 June 2017 1/1 Solicitor

Robert Rae

Appointed 1 March 2011 Retired 28 February 2017

2/3

Former Chairman, Midlothian & East Lothian Chamber of Commerce

Megan Richardson

Appointed 10 June 2016

5/5

Student Vice-President

Stewart Sands

Appointed 10 June 2017

1/1

Student President

Eurig Scandrett

Appointed 1 December 2016 4/4 Elected Academic Staff Member

Andrew Scott

Appointed 28 June 2017

1/1

Director of Population Health, Scottish Government

Judith Sischy, OBE

Appointed 1 September 2010 Retired 31 August 2016

0/0

Former Chief Executive, Scottish Council of Independent Schools

Heidi Vistisen

Appointed 10 June 2015 4/4 Retired 9 June 2017

4/4

Student President

Laura Young MBE

Appointed 1 October 2016

5/5

Founder of the Teapot Trust

Professor Petra Wend

Appointed 1 September 2009

5/5

Principal & Vice-Chancellor

Ex Officio

Membership of University Court Committees during the year to 31 July 2017

Audit and Risk Committee

Name

Role

Attendance record

Miller McLean

Convener

4/4

Carolyn Bell

Appointed 8 February 2017

1/1

Dr Anthony Falconer

Ìý

3/4

Robert Rae

Retired 28 February 2017

3/3

Judith Sischy

Retired 31 August 2016

0/0

Finance & Estates Committee

±·²¹³¾±ðÌý Date Appointed/Retired Attendance record

James Bradshaw

Convener

4/5

Dr Richard Butt

Appointed 1 September 2016 4/5

Ian Calder

Retired 28 February 2017

2/2
Professor Alan Gilloran Retired 31 August 2016 0/0

Cynthia Guthrie

Ìý 4/5
Ken McGarrity Appointed 8 Feb 2017 2/3

Linda McPherson

Ìý 5/5

Professor Petra Wend

Ìý 3/5

ÌýNominations Committee

±·²¹³¾±ðÌý Date Appointed/Retired Attendance record

Dr Frances Dow

Convener

2/2

Professor Robert Cormack

Retired 31 August 2016 0/0

Colin Duffus

Ìý

1/2
Doctor Anthony Falconer Ìý 1/2

Jacqueline McPherson

Ìý 2/2

Linda McPherson

Ìý 5/5

Heidi Vistisen

Retired 9 June 2017 1/1

Professor Petra Wend

Ìý 2/2

Stewart Sands

Appointed 10 June 2017

1/1

Ìý

±·²¹³¾±ðÌý Date Appointed/Retired

Attendance record

Linda McPherson

Convener – Appointed 1 October 2016

0/0

Mark Laing

Convener – Retired 30 September 2016 1/1

Dr Frances Dow

Ìý 1/1

Jacqueline Macdonald

Ìý 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; and 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

Dr Frances Dow, CBE Chair
6 December 2017