Annual Report and Financial Statements for the year ended 31 March 2017
Schoolhill, Aberdeen, Scotland AB10 1FE Tel 01224 646346 www.rgc.aberdeen.sch.uk Robert Gordonâ€™s College is a charity registered in Scotland, No. SC000123
Introduction Constitution & Legal Status Governors and Senior Management Team a) Governors b) Senior Management Team c) Charitable Status
Financial Review a) Annual Results b) Investments c) Reserves or Funds of the College d) Going Concern e) Risk Management
Objectives & Aims of the College a) Objective b) Aims c) Priorities for the Year 2016-2017 d) Priorities for the Year 2017-2020 e) 5 Year Strategy for 2014-2019
Review of Achievements & Performance for the Year a) School Roll and Admissions b) Public Benefit – Fee Assistance c) Public Benefit – Widening Access d) Fundraising e) Examination Results f) Education Scotland g) Curriculum h) Sporting Participation and Achivement i) Expressive Arts j) Staff development k) Community Involvement
Governance a) Governors’ Responsibilities b) Recruitment and Training of Governors c) Board of Governors Composition d) Remuneration of Key Management Personnel e) Principal Address f) Advisors
Statement of Disclosure to Auditor
Independent Auditor’s Report
Statement of Financial Activities
Income and Expenditure Account
Cash Flow Statement
Notes to the Financial Statements
Governors and Senior Management Team Introduction The Governors present their annual report for the year ended 31 March 2017 together with the audited accounts for the year, and confirm that the latter comply with the Charities and Trustee Investment (Scotland) Act 2005, Charities Accounts (Scotland) Regulations 2006, the City of Aberdeen Educational Endowments Schemes 1985 (as amended by 1988 and 1991 amendment schemes), the Trust Deed and the Charities SORP 2015 (FRS 102).
Constitution and Legal Status Founded in 1732, Robert Gordon's College is an independent co-educational day school providing all-round education for children from 3 to 18 years of age. The College was initially governed under the terms of the Deed of Mortification of the founder, Robert Gordon; the constitution of the College is now governed by the City of Aberdeen Educational Endowments Scheme 1985 (as amended by 1988 and 1991 amendment schemes). The College is answerable to the Scottish Government Education Department in relation to general matters pertaining to all schools in Scotland and in satisfying the official criteria for registration as an independent school. The College is a registered charity, registration number SC000123.
a. The Governors who held office during the year were: Nominated Governors
Prof James Hutchison, MBChB PhD FRCSEd FRCSEng FRCSGlas FFSTEd (Chairman) Mr David Rennie, LLB
University of Aberdeen
Councillor Ian Yuill, BA DipM FRSA MCIM MCIPR FCMI Councillor William Cormie Councillor Jean Morrison Councillor Ross Thomson (resigned August 2016) Councillor Alan Donnelly (from November 2016)
Aberdeen City Council Aberdeen City Council Aberdeen City Council Aberdeen City Council Aberdeen City Council
Mr Victor Beamish (resigned September 2016) Mr Alfred Cordiner
Aberdeen Endowments Trust Aberdeen Endowments Trust
Mr Graeme Nicol (appointed September 2016) Mr Robin Whyte
Gordonian Association Gordonian Association
Rev B Stephen C Taylor, BA BBS MA MDiv Rev Marian Cowie
Presbytery of Aberdeen Presbytery of Aberdeen
Chamber of Commerce
Dr George S Stevenson, MBE, DHC, FRICS Seven Incorporated Trades of (resigned December 2016) Aberdeen Mr David Parkinson (appointed January 2017) Seven Incorporated Trades of Aberdeen Mrs Elizabeth Clark, BEd, Med
University of Aberdeen
Co-opted Governors Mr Paul de Leeuw, MEng, MBA Dr Tracey Menzies, LLB, LLM, DHC Mr Bill Rattray, MA, CA Mr Christopher Shepherd, BSc Mr Alistair Hector, MA Mr Kevin Reynard, BCom, CA Mr Paul Stevenson, BLE (Hons), MRICS Implementation of the Boardâ€™s strategy and policies, and day to day running of the College, is delegated to the Head of College, supported by the Senior Management Team.
Extracts from the Collegeâ€™s 2017 Annual Report and Financial Statements 1
b. Senior Management Team Mr Simon J Mills, MA (Hons) Mr Michael S Elder, MA Mr Stefan Horsman, MA (Hons) Mrs Anne Watson, MA Mrs Claire Cowie MA (Hons) MLitt Mr Peter Robin Fish MA (Oxon) Mrs Sarah Webb, BEd Mrs Sally-Ann Johnson, MEd, BEd Mrs Varie MacLeod, BEd, SQIE Mr Andrew W Lowden, MA, CA
Head of College Head of Senior School Deputy Head Senior School Deputy Head Senior School Deputy Head Senior School Deputy Head Senior School Head of Junior School Deputy Head Junior School Deputy Head Junior School Director of Finance
c. Charitable Status In April 2013 the Office of the Scottish Charities Regulator confirmed the Charitable Status of Robert Gordon’s College, citing that the College’s purposes were charitable, that its activities provide public benefit in furtherance of those purposes and that the conditions on accessing the benefit are not unduly restrictive. OSCR referred to “a notable level of benefit for which it makes little or no charge” and the fact that “the school spent a relatively high sum in 201112 on means-tested bursary provision.” The “focus on full fee remission awards” and “the importance the school attaches to financial need” were mentioned. Provision of financial support to enable pupils to attend the College who would otherwise be unable to do so remains fundamental to the aims of the College, and the level of awards have continued to increase.
Extracts from the College’s 2017 Annual Report and Financial Statements
Provision of financial support to enable pupils to attend the College who would otherwise be unable to do so remains fundamental to the aims of the College, and the level of awards have continued to increase.
Financial Review a. Annual Results
The annual operating budgets and the College long term business plan reflect the challenging operating environment, as the local economy continues to be impacted by the downturn in the oil and gas industry, the associated impact across all sectors and the challenges faced by some other sectors. In this context, the overall financial performance in the year was reassuring. Setting aside donations and legacies which are reinvested, the small operating surplus and the cash generated were both above budget. Total income and endowments increased mainly due to the unrestricted legacy donation referred to in Note 5 to the financial statements, along with the annual increase in tuition fees. Tuition fees increased from £17.8 million to £18.0 million and the average fee per pupil increased by 4.2% from £10,573 to £11,021. Whilst the annual tuition fee increase effective from August 2016 was restricted to 1.9% the higher average fee increase was due to an increase in the proportion of senior school pupils to the roll as a whole. The pupil roll at the year-end was 1,622 taking a half day nursery place as one place in the roll (2016 - 1,668) The reported gross and net income includes a significant legacy donation which will be bequeathed to the College on an unrestricted basis. It is the intention of the Governors for these funds to provide long term benefits by designating the monies to potential capital projects and/or provide income in perpetuity to support the College bursary programme. The College continues to receive and be grateful for the bursary support provided by the Aberdeen Endowments Trust and other philanthropic contributors. Estates repairs and maintenance expenditure was reduced following significant investment in the prior year. This expenditure varies each year as budgets are set to provide the required level of maintenance for our historic, impressive and demanding campus. Staff costs increased by 1% mainly due to the application of the national teachers’ pay agreement, which was partly offset by the ongoing control of staff headcount. The average number of staff employed by the College fell by seven to 282 (2016 – 289). This trend is not expected to continue as headcount is considered to be at the level required for the College’s ongoing activities. Pension costs as a percentage of salaries was 16% (2016 - 16%). As expected, finance costs (interest paid on loans and overdraft) were lower than the prior year due to continued low interest rates, low utilisation of overdraft facilities from focussed cash management, and the reduction in long term borrowing from the final tranche from land sale proceeds being used to repay bank debt. The Governors expect the cost of borrowing and the amount of interest payable to continue around these levels in the coming year. Fixed asset additions in the year, as detailed in Note 10, were £280,000 and depreciation of £1.6 million was charged. The additions represent further investment in new teaching equipment.
The market value of investments at 31 March 2017 increased to £7.4 million (from £5.9 million in 2016) due to more favourable equity market conditions along with endowments and designated funds being invested. Donations received by the Development Office during the year reduced from £1.1 million to £400,000 as the successful Phase II fund raising campaign drew to a close during the previous year. The Phase II campaign was to raise funds to support the renovation project to deliver the Wood Foundation for Science and Technology alongside the Craig Centre for Performing Arts. The Deferred Consideration cleared during the year following receipt of the final scheduled land sale proceeds as detailed in Note 12. Also in Note 12, the other debtors increased to reflect the significant legacy due to be received post year end as explained above. As required by financial reporting standards, the balance sheet recognises a liability in respect of a defined benefit pension scheme, the North East Scotland Pension Fund, in which some of the College’s current and retired support staff participate (see Note 24). The recorded liability has increased from £2.3 million to £4.0 million mainly due to the scheme’s appointed actuaries reducing the discount rate used to calculate the pension liabilities. The key assumption for establishing the discount rate is set by using the value of high quality corporate bond yields in the calculations. This method is carried out by the scheme actuary using the standard assumptions and prescribed approach set by the International Accounting Standards Board and the Financial Reporting Council. The pension contributions paid by the College are determined by the triennial valuation now being prepared as of 31st March 2017. This valuation compiled by the Scheme actuary will be carried out using real returns as a basis to determine the discount rate instead of the bond yields as required to be used in the accounting standards. The results of the triennial valuation will establish the funding level of the whole fund and for each participating employer. The funding level for the College will determine the contribution rate to be paid for three years until the next triennial valuation and the College does not anticipate a material change in the contribution rate payable. The pension scheme administrators have reported that the above Fund has performed extremely well during the year to 31 March 2017 with an increase of 19.8% in the asset value over this time. The Governors closed the scheme to new entrants in 2016 to mitigate future liabilities and now provide a lower cost, defined contribution pension option appropriately structured to recruit and retain new support staff. As described in Accounting Policies Note 1, the financial statements are prepared in compliance with the Statement of Recommended Practice (SORP 2015) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).
In this context, the overall financial performance in the year was reassuring. Setting aside donations and legacies which are reinvested, the small operating surplus and the cash generated were both above budget.
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b. Investments The Governors’ policy is to maintain income as a priority, whilst also seeking to preserve wherever possible the value of endowment investments. The College’s investments have continued to be managed by its investment advisors, on behalf of the Governors, in accordance with this policy. The Governors actively and regularly review market trends and investment strategy with these advisors. Investment income for the year was £302,000. Income was generally in line with budget and the Governors were satisfied with performance despite uncertain market conditions.
c. Reserves or Funds of the College
The Governors’ overall aim is to continue to build an appropriate level of resources to ensure that the College’s long term financial strength and independence are sustained.
Note 17 to the financial statements shows the assets and liabilities attributable to the various funds by type, describe the funds and summarise the year’s movements on each fund. The Governors’ overall aim is to continue to build an appropriate level of resources to ensure that the College’s long term financial strength and independence are sustained. The policies applied to each fund are: Unrestricted funds amounted to £15 million. Given the extent of investment in fixed assets, it is the College’s policy to monitor the level of unrestricted funds whilst focussing on liquidity, key to that being maintaining sufficient liquidity to meet ongoing working capital requirements. To support this policy, the College utilises bank overdraft and long term borrowing facilties, structured to enable debt servicing to be achieved and any covenants met with sufficient headroom. The Governors keep these facilities under regular review and measure against policy. Restricted Endowment Funds amounted to £7 million. These donated funds are required by donors to be held as capital. As described in 4 (b) it is policy to invest the funds to preserve the capital and there are fundraising strategies in place to grow these funds. The income generated is applied in line with donor requirements. Restricted Appeal Funds amount to £290,000. These funds represent accumulated income from restricted endowment funds which is yet to be applied due mainly to the original donor’s terms limiting the College’s ability to allocate the funds. It is policy to protect and preserve this income and, over time, to explore ways to allocate the funds in line with good governance. Restricted Appeal Funds amounted to £4.9 million. These funds represent donations received arising from appeals run by the Development Office, as detailed in Note 19. The majority of the funds have been invested in fixed asset land and buildings and there are fundraising strategies in place to grow these funds.
Extracts from the College’s 2017 Annual Report and Financial Statements
d. Going Concern
As detailed in Note 1 to the Financial Statements, the Governors have reviewed the College’s ability to service future financial obligations and therefore have a reasonable expectation that the College has adequate resources to continue in operational existence for the foreseeable future.
e. Risk management The Board of Governors is responsible for the management of the risks faced by the College. Detailed considerations of risk are delegated to various Committees, detailed in 6(c). Risks are identified, assessed and controls refined and established throughout the year. A formal review of the College’s risk management processes is undertaken on an annual basis. The principal risks and uncertainties currently facing the College include: • • • • •
Welfare of pupils and staff Reputation within parental, local and national communities Legislative and regulatory compliance, particularly charitable status Economic - macro-economic uncertainty and volatility as well as local economic and market conditions Business Continuity - the ability to continue teaching following a serious incident
There are also political risks and uncertainties related to the independent school sector in Scotland which are outwith the College’s immediate control. The Scottish Council of Independent Schools represents its member schools and communicates and negotiates with the Scottish Parliament, the Government, public and private bodies on behalf of the sector. The key controls adopted by the College include: • Formal agenda for all Committee and Board activity • Terms of reference for all Committees • Comprehensive strategic planning, budgeting and management accounting • Established organisational structure and lines of reporting • Formal written policies • Clear authorisation and approval levels • Professional advice is sought whenever appropriate Through the risk management processes established for the College, the College Board of Governors are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but no absolute assurance that major risks have been adequately managed.
Objectives & Aims of the College a. Objective The objective, as set out in the Deed of Mortification dated 1729, and updated by The City of Aberdeen Enducational Endowments Scheme 1985, ( as amended by 1988 and 1991 amendment schemes) is to provide a high quality all-round education for boys and girls, appropriate to their needs, in an environment and atmosphere conducive to learning. All of the College’s assets are held for this purpose and these assets include endowment and income funds held for special purposes in connection with the development of the school’s facilities as well as for bursaries, scholarships, prizes and other educational purposes. These assets are sufficient to meet the obligations of the College on a fund by fund basis.
b. Aims The aims of the College are: • Provide an education which enables all pupils to discover and develop their individual capacities and character, to prepare them for employment and life • Encourage pupils to work hard to meet high expectations of excellence within and beyond the classroom • Maintain a happy, caring and safe learning environment and foster a sense of identity within an inclusive and diverse school community • Offer the widest possible range of academic, personal and social opportunities • Foster the professional development of all staff in an innovative learning community
c. Priorities for the Year 2016 - 2017
d. Priorities for the Years 2017 - 2020 The key priorities for development as agreed by the Governors and Senior Management Team are: • Excellence in teaching and learning • High quality self-evaluation at College, Department and year group level. • Development of the whole person • Transition process to enable the best educational progression for all pupils • Quality of assessment, monitoring and tracking and reporting. Each of these objectives, together with other ongoing objectives, has been included in the College Improvement Plan which includes particulars of the detailed plans and resources required to achieve each objective within the appropriate timescale.
e. Five Year Strategy 2014 - 2019 The College’s strategic objectives are focused on the following important areas, which are regularly reviewed and amended as part of the College’s ongoing planning process. • Aims and core beliefs • Learning community • Curricular experience • Wider educational experience • Use of technology • Professional organisation
The aims of the College are to provide an education which enables all pupils to discover and develop their individual capacities and character, to prepare them for employment and life
• Caring community • World class school • Wider community • Business • Environment
The Governors and Senior Management Team agreed the following key priorities for the past session: • Continued development of the school curriculum • Ensure optimum pastoral care for all pupils and enhance the wider personal development of all pupils • Continue to develop the effective use of digital technologies. • Continue the professional development of all staff at Gordon’s.
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Review of Achievements and Performance for the year a. School roll and admissions 20 of the new entrants to Senior 1 will be joining the school on full bursaries, i.e. paying no fees at all.
As at 31st March 2017 the College comprises a Nursery Unit (3 half day and 33 full day places equating to 34.5 children), a Junior School (510 pupils aged 5-11), and a Senior School (1,076 pupils aged 12-18). As at August 2017 the roll is 1,641, reflecting minor increase and perhaps a sign of stabilisation in the local economy which has recently been impacted by the downturn in the oil sector. Applications for admission to Senior 1 to commence in August 2016/17 were received from 162 external applicants (2015/16: 192). Of this total, 77 external candidates (2015/16: 91) accepted places offered to them having achieved the academic criteria for admission. A further 89 places were awarded to pupils from the current Primary 7 (2015/16: 91). Bursaries were awarded to 26 of the total intake of 167 pupils (2015/1: 26). Approximately 58% of the 2016/17 new entrants to Senior 1 are boys and 42% girls. The ratio of boys to girls remains relatively stable compared to the previous three years. In the school as a whole the proportion of girls now stands at 45%. 20 of the new entrants to Senior 1 will be joining the school on full bursaries, i.e. paying no fees at all (2015/16: 19).
Means tested bursaries as a % of fee income
b. Public Benefit - Fee assistance A number of benefactors have provided funds to be used for the provision of scholarships, bursaries, grants, prizes and other awards to pupils of the College. Some of these funds are administered by the Aberdeen Endowments Trust, which has supported pupils who would not otherwise have benefited from the education provided by the College. Other funds are are administered directly by the Governors and include awards from other trusts to candidates proposed by the school. The Governors’ policy, in line with that of other independent schools, is to make awards from these funds on the basis of an individual’s financial need (means testing) and educational potential, subject to any conditions imposed by the original donor where the award is made from restricted funds. The awards can be by way of a partial or 100% means tested bursary. The Governors believe that the College’s fee assistance policy provides significant public benefit by allowing access to an independent education for many pupils whose parents would otherwise be unable to meet the tuition fees Guidance from the Office of the Scottish Charity Regulator (OSCR), indicates certain key measures related to means tested bursaries are used by OSCR as part of the assessment of independent schools charitable status. These are carefully monitored by the Governors and taking school roll to be the average roll over the three terms within the financial year, the key measures are:
Means tested bursaries as % of school roll
100% means tested bursaries as % of school roll
The Governors aim to increase the breadth of access to the school still further in coming years and have tasked the College’s development office with attracting the additional funding that this will require. The College also offers a small number of Burnett Scholarships providing up to half fee (25% and 50%) discounts to pupils of outstanding talent in academic subjects, in music, or in sport. Burnett Scholarships are available to pupils currently in Fourth Year at other schools who are expected to achieve excellent results in their Higher exams.
Extracts from the College’s 2017 Annual Report and Financial Statements
c. Public Benefit - Widening Access It is a basic principle of Robert Gordon’s College that the education provided should be available to as many pupils as possible regardless of parental background or income. To this end, a number of long-standing initiatives have been further enhanced in recent years. 1. Advertisements inviting applications for bursaries now refer to “free places” to ensure that the assistance we offer is widely understood. Advertisements emphasise the open access available to the school and include regional and local press and other publications. 2. The Aberdeen Endowments Trust is proactive in writing to the Head Teachers and School Boards of local primary schools to encourage applications from pupils of all backgrounds. 3. An Open Morning is held each October to which visitors from the entire community are welcome along wih a number of Open Days which allows prospective parents and pupils to tour the school during term time. 4. The application process is kept as uncomplicated as possible and the deposit for applications is waived where bursaries are applied for. The format of the application has been reviewed, in conjunction with the Aberdeen Endowments Trust, to ensure that it is easy to complete, thorough and equitable. 5. All bursaries are means-tested and awards are made on an equal weighting for academic success in the entrance exam and for financial need. 6. Our website is structured to emphasise the availability of free places. It also enables visits, queries and applications to be dealt with online. A series of FAQs supports those interested in reduced fees. 7. The College’s Scholarship Sub-Commitee actively monitor the proportion of bursaries awarded to pupils and families residing in the more deprived areas of the City as verified by Aberdeen City Council’s report. 8. The school’s community involvement (paragraph k) and the activities of its staff (paragraph j) both contribute substantially to the College’s public benefit.
The College employs a development team of 9 full time staff. Governors, the Head of College and Senior Management are actively involved in fundraising activities, including those for bursaries. The number of bursaries has been increased as a consequence of these efforts. We believe that the support of the Gordon’s community will help us achieve these aims and strengthen the reputation of the College even further.
e. Examination results
The 2017 SQA examinations recorded a very strong year for S5 pupils with the percentage of A-C passes achieved at Higher level (pre-appeal) was 96.8% (2016– 94.9%). The percentage of A passes at Higher was 60.0% (2016 – 61.2%), and the percentage of A/B passes was 86.5% (2016 - 85.4%). The number of pupils achieving As in all 5 of their Highers at one sitting was 48 (2016 – 62). A further 36 pupils achieved 4As and one B (2016 - 21). The percentage of candidates achieving Advanced Highers A-C passes was 85.8% (2016– 90.7%). In addition, 55 pupils in Secondary 4 achieved eight As in their exams (2016 – 67) with 97.0% of pupils gaining A-C grade passes at National 5. The numbers of pupils studying Business, Law, Engineering, Science and Medicine at University remain a distinctive feature of the College. In 2016, 32 went to study Business /Finance related degrees, 28 went on to study Engineering degrees and a further 28 to study Science or Medical /Dental degrees. There are very many different university degree pathways followed with a broad range of Arts, Languages and wider disciplines studied, in addition to a small number to direct employment. Pupils at RGC are encouraged to pursue courses which reflect their skills and attributes and destinations are varied.
Governors, the Head of College and Senior Management are actively involved in fundraising activities, including those for bursaries. The number of bursaries has been increased as a consequence of these efforts.
d. Fundraising There is a permanent fundraising structure to assist with the College’s long term aim of meeting the educational priorities with three areas of focus: Gordon’s Today (for current educational projects and resources), Gordon’s Tomorrow (for development of the physical infrastructure of the College), Gordon’s Forever (for means-tested bursaries).
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f. Education Scotland
The number of subjects on offer remains a defining feature of the College’s curriculum. In the Junior School, the provision of specialist teaching in Art, Drama, French, Music, Physical Education and Science, is distinctive.
Robert Gordon’s College is reviewed and inspected by Education Scotland. In April 2016 the College received a Quality Improvement and Professional Engagement (QUIPE) visit where a team of Education Scotland Inspectors reviewed the school’s capacity for continued improvement. The inspecting team particularly highlighted the curriculum and approaches to digital learning in the Junior and Senior Schools. At the end of this process they were able to give a very positive report as summarised below: “Overall, Robert Gordon’s College provides high quality experiences for learners of all ages. Children and young people are happy and proud of their school. During the visit we observed examples of outstanding learning and teaching and high expectations of learners’ achievements. The well-planned curriculum leads to high levels of attainment for children and young people across the nursery, junior school and senior school. All parents responding to our questionnaire said their children enjoy learning and almost all parents are happy overall with the school. The excellent facilities in the new science and technology block, the expressive arts facilities and the junior school provide an environment which is very conducive to supporting children and young people’s learning. The school’s vision for every child to “be the best they can be” is evident and leadership for learning across the school is strong” (QUIPE summary letter to parents - June 2016) The QUIPE inspection visit also identified two areas of innovative practice which will be further explored to share with other schools in Scotland. The areas identified as sector leading were Junior School Learning and Teaching and Performing Arts throughout the whole school. The school continues to use a wide range of self-evaluation processes to feed into the development of education for all children at the College and to inform the School Improvement Plan.
Extracts from the College’s 2017 Annual Report and Financial Statements
g. Curriculum The number of subjects on offer remains a defining feature of the College’s curriculum. In the Junior School, the Curriculum for Excellence is embedded. The provision of specialist teaching in Art, Drama, French, Music, Physical Education and Science, is distinctive. The quality of learning and teaching is constantly reviewed, as the core purpose of the school. and the recent QUIPE review found that the standard of teaching and learning were of a very high level with examples of outstanding practice. Several distinctive features include posts of Principal Teacher (Learning) support developments in the Junior School; the school has specific responsibility posts for International Co-ordination, e-Learning and Outdoor Education; self-evaluation is well embedded in the school’s system; staff benefit from annual Professional Review and Development and there is a generous provision of Professional Development. At Senior 3 the pupils can choose between 21 subjects at National 5. The school continues to allow pupils to sit eight subjects in Third and Fourth Years and lets the pupils choose them without constraint. This “2+2” structure maintains breadth of choice while allowing a depth of learning as they progress through S3-S4. At Senior 5 there is a choice of 25 Highers. In Senior 6 there is a choice of 22 Advanced Highers and 33 Highers as well as a range of curriculum enhancement courses. The timetable is created from a free choice of combinations of subjects, all of which are usually fulfilled. A number of pupils join the school for Fifth and Sixth Year and this is partly due to the continuing availability of a full range of subjects at Higher and Advanced level with a fully
allocated teaching time. The school community Sixth Year pupils are offered a wide range of opportunities to contribute to the School Community, for instance as Subject Assistants, Gordonian Association Representatives, Form Buddies, Pupil Mentors, Prefects, Prefect Leaders and paired readers for Junior School pupils. Senior School pupils lead the activities of a highly organised House system, which involves all Senior and many Junior School pupils, including the House Captains and Form Representatives. Active Pupil Councils allow pupils to respond to and influence issues in the life of the school. Achievement Assemblies recognise individual and group achievements by pupils across both academic and extra-curricular areas. College publications include ‘From the Quadrangle’, which celebrates the daily life of the school, the ‘Gordonian’, which summarises the College year, and the ‘Pelican’, which enables former pupils to remain in contact with each other and with the current school. More regular news stories are added to the College website on a weekly basis. Through the Development Office, over 8,000 alumni are kept abreast of the school story, invited to reunions and enabled to contact each other. Co-curricular activities The co-curricular activities are exceptionally varied with over 30 different Clubs and Societies in Junior and over 60 Clubs and Societies in the Senior School. Pupils in the Senior School can win Colours and Merit Awards for participation in these Clubs and other forms of service within the school community. New clubs are added annually with Mandarin, STEM Club and VEX Robotics Club being added recently. Many senior pupils are involved with the Combined Cadet Force (CCF) in both Army and RAF sections. Senior pupils are involved in national and international inter-school conferences and activities, such as the S5 pupils who attend the Global Alliance for Innovative Learning (GAIL) Student Convention annually. Our Model United Nations teams engage in national competition with excellent success, as well as in public speaking and debating competitions. A wide range of academic competitions have teams entered such as the ROV competition for engineering, the STEM in the Pipeline technology challenge, Maths and Chemistry Olympiads and the Focus photographic competition. These are a small selection but give a representative sample. As with sport, our pupils both travel to compete against other young people all over Scotland and the UK and arrange activities on our own facilities to welcome them. Our pupils’ achievements are publicised through the website and the magazine ‘From the Quadrangle’.
h. Sporting Participation and Achievement The College continues to build on its proud tradition of sporting participation and achievement this past year. The committed staff continually work to achieve the twin goals of maximising participation alongside the pursuit and support of excellence. In Rugby, our numbers are still strong putting out 14 teams every Saturday. Many boys were selected for District representation and 3 for the Scotland U16 Squad. Both Girls and Boys Hockey had successful seasons with 27 girls and 24 boys playing for the North District squads. Two boys are in the Scottish U16 Squad, and 3 girls are in their respective Scottish squads. The Senior Girls won the North District League and reached the Scottish Plate Final. The Senior Netball and Hockey Tour to Sri Lanka last year was a great success and this has led to a very strong year in Netball. The Senior Girls won the Aberdeen Schools League and Aberdeen Schools Cup. The 1st VII were outstanding this year losing narrowly in the Scottish Cup Gold Final in a very high-quality match. 3 girls have gone on to National selection and one to the U21 Squad for the European and World Championships. Six individual medals were won at the Scottish Schools Athletics held at Grangemouth with the P7 Relay Boys team winning Silver in the 4 x 100m. Members of the Golf team won the Paul Lawrie Aberdeenshire Team Championships and individual prizes at the Aberdeen stroke play Championships for Boys and Girls. The Ski team retained the Scottish Ski / Board Trophy at the Indoor Championships. The Swimming Team picked up a wide range of individual medals at the National Championships, including Gold in the S2 100m Breaststroke. Altogether the College had 31 pupils in Scottish national teams in 17 different sports, ranging from Basketball to Sailing, Tennis, Water Polo and Tae Kwon Do. These sporting successes are a great credit to both the pupils themselves and to the teaching and coaching staff. However, it is important to recognise that such success is founded on much wider and deeper participation and it is pleasing to note that so many of the Senior and
There are approximately 200 pupils taking part every day after school and around 500 pupils playing on most Saturdays. The numbers of pupils participating in extra-curricular sport again increased over the year.
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Junior school pupils regularly engage in team or individual sports outwith school hours. There are approximately 200 pupils taking part every day after school and around 500 pupils playing on most Saturdays. The numbers of pupils participating in extra-curricular sport again increased over the year. The challenges to get and keep children active are ever increasing as the digital age develops. Our exceptional facilities at Countesswells are the home for much of what we do and are used by a wide variety of community and youth groups.
i. Expressive Arts Local charities and groups attend musical events in the school and our musicians play in public at various locations.
The high number of musical groups and instrumental instructors allows large numbers of pupils to participate in bands, orchestras, choirs and ensembles. The quality of the music created by these groups has also continued to develop both in the school’s own concerts and in public performances. Local charities and groups attend musical events in the school and our musicians play in public at various locations. Music is extremely dynamic and active with regular concerts and music tours. Junior and Senior pupils are involved in the College Orchestras, Choirs, Wind, Brass and String groups, Big Band and the Ceilidh Band. The two Pipe Bands have pupils from P3-S6 involved and attend national competitions. There is expertise in dance with the RGC Dance Show being an annual feature. Drama is a curricular subject from Primary 1 to Secondary 6 and all year groups are engaged in public performances; in 2016-17
10 Extracts from the College’s 2017 Annual Report and Financial Statements
Primary 7 staged the musical ‘We Will Rock You’ and the Senior School presented a stage version of ‘Les Miserables’. A series of Art Exhibitions by each year group is a showcase for the school’s talent annually. The state of the art Craig Centre for Performing Arts has enlarged drama and music opportunities with a retractable 200 seat theatre, a digital recording studio, 4 music tuition rooms, an art gallery and Green Rooms plus changing rooms..
j. Staff development
The College both appoints teaching staff from, and sends staff to, promoted and un-promoted posts in maintained schools. Staff are encouraged to take part in a well-funded programme of professional development including participation in courses across Scotland. A well-established programme of Professional Review and Development allows all teaching staff to reflect on their professional work and plan further improvement. A considerable quantity and variety of selfevaluation of learning and teaching is regularly undertaken on a departmental and whole school basis to inform best practice and form the basis for further improvement. We encourage continual development for our valued support staff and have further embedded the tailored Continuing Professional Development programme that supports the Professional Review and Development scheme. Staff contribute extensively to national education organisations. A number of staff are involved at a high level in the development of the new National Qualification
and a large number of teaching staff work for the Scottish Qualifications Authority as Examiners, Setters and Markers. The College accepts around 5 students per year to undertake school placements as part of their University course and has a well-developed probationary programme for new teaching staff. There is also ongoing education of a new Classics teacher and a new PE teacher within the College. These groups are given a programme of mentoring and experiences to enable them to meet the GTCS Standard for Registration.
k. Community Involvement
Robert Robert Gordon’s College is heavily involved in the community of Aberdeen and North-East Scotland in the following ways: Charities: • The School’s Charity Committee annually raises large sums of money for many different local, national and international charities through events in the school community. • Most of the performances by pupils in Expressive Arts raise money for specific charities; PE staff also organise school-wide charity events, for instance for Sport Relief. • Fourth Year pupils in the College are involved with the Youth Philanthropy Initiative, through the Wood Family Trust, in an annual enterprise programme which involves working with local charities on presentations which are
judged, with the winning charity receiving £3,000. • The College currently enters more pupils for Duke of Edinburgh’s Award than any other school in Scotland. All of these pupils undertake community service and Gordon’s pupils can be seen working with almost all local charities or branches of national charities during the year. This amounts to over 4,500 hours a year of volunteering. • College facilities are also made available to local charities, for example for art auctions. Community organisations and institutions • Gordon’s Music and Drama groups engage in public performances during the year, for instance in local churches, and both departments, ensembles and individual pupils support many community Music and Drama groups. • The Music Department supports local competitions, for instance the Burns Federation, the Aberdeen Music Festival, the Aberdeenshire Music Festival and the Aberdeen Jazz Festival. • The College invites local organisations such as Rotary and local Primary Schools to attend performances. The College makes facilities available for visiting performers and invites local schools to share these performances. • Various departments work closely with local institutions such as churches, cinemas, theatres, companies, the Sheriff Court, and the Universities. • The College hosts national and local debating competitions. Support for Education • In addition to the means tested bursaries recorded above, the College provides scholarships in Fifth or Sixth Year for pupils with a particular specialist academic, musical or sporting talent. • Our academic facilities are made available occasionally and, in particular, to pupils applying to high tariff university courses from maintained schools who join with Gordon’s pupils in the College’s programme of preparation. Seminars on applying to European universities were open to local schools as well as specialist lectures and presentations (e.g. Computing and Physics lectures). • The College provides facilities and administration for external candidates for BMAT, STEP and LNAT examinations, and for SQA exams in several subjects including Mandarin Chinese, Dutch, Maths, Latin and Italian. • Members of staff have helped teachers in maintained schools with specific developments, for instance a robotics competition, and host professional development meetings for staff from local schools. • Teacher CPD is provided on a regional and national basis (e.g. training from the Perimeter Institute to national Physics teacher trainers).
The School’s Charity Committee annually raises large sums of money for many different local, national and international charities through events in the school community.
Extracts from the College’s 2017 Annual Report and Financial Statements 11
Governance a. Governors’ Responsibilities The Governors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in Scotland requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the College and of the incoming resources and application of resources of the College for that period. In preparing these financial statements, the Governors require to:
Governors are invited to attend all main School events and take an active interest in the College community. Governors are expected to support and enhance the public reputation of the College in the community.
• select suitable accounting policies and then apply them consistently; • observe the methods and principles in the Charities SORP 2015 (FRS 102); • make judgements and estimates that are reasonable and prudent; • state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the College will continue in operation. The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the College and enable them to ensure that the financial statements comply with the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the College’s constitution. They are also responsible for safeguarding the assets of the College and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. As part of the Governors’ oversight of the College’s governance, a review was commissioned from the Association of Governing Bodies of Independent Schools (AGBIS). The report of this review, which covered all aspects of governance, was considered by the Board of Governors and the main recommendations implemented from September 2009. The governance structure created has since only required refinement and is considered robust and fit for purpose
12 Extracts from the College’s 2017 Annual Report and Financial Statements
b. Recruitment and Training of Governors In considering nominations for appointment to the Board of Governors, the Nominations Committee provides guidelines detailing the particular skills and expertise which are felt to be desirable and helpful and include areas such as education, finance, child welfare, legal matters, communications and marketing, human resources, and property and construction. Efforts are made to achieve a composition and balance of these and other skills within the Board. On appointment, Governors are invited to participate in an induction process involving meetings with the Chairman, the Head of College and the Director of Finance and Clerk to the Governors in order to gain an appreciation of the objectives of the School and its operation. In addition, the responsibilities of the Board and its Governors to the pupils, staff, parents and the wider community are explained. This also includes the legal responsibilities and obligations of operating an independent school within the Scottish education system and the relationship with the Scottish Executive and Her Majesty’s Inspectors of Education and other government bodies. Governors are encouraged to visit the College at any time and also participate in staff INSET days. Governors are also invited to attend all main School events and take an active interest in the College community. Governors are expected to support and enhance the public reputation of the College in the community. Through the Scottish Council for Independent Schools, which represents the vast majority of independent schools in Scotland, special seminars are provided for school governors and the Governors of Robert Gordon’s College are encouraged to attend such events. Governors are provided with copies of relevant material received by the College relating to the educational provision and changes in legislation and the Head of College and the Director of Finance provide regular updates at Board and Committee meetings. Members of the Board receive no remuneration for the services they provide to the College in their capacity as Governor. However, members of the Board give a great many hours of their time to the College attending meetings of the Board, committees, sub-committees and working groups, as well as College events, providing advice and guidance, and supporting the members of the Executive. The value of such time is significant and is greatly valued by the Chairman and Senior Management Team.
c. Board of Governors Composition The composition of the Board of Governors is determined by the statutory instrument City of Aberdeen Educational Endowments Scheme 1985. Governors are elected by various bodies and serve on the Board for a term of 3 years. The Board also includes a number of Governors who are co-opted by the College Governors. Retiring Governors may be re-elected and new Governors are inducted into the policies and procedures of the College at an introductory meeting with the Head of College and Director of Finance. A Trustee training workshop for Governors is also made available through the Scottish Council for Independent Schools. The Governors, as trustees of the College, are responsible for overall management and control. The Board of Governors meets at least four times a year to review financial and operational performance and strategy and is supported by a number of committees, each of which operates in accordance with written terms of reference approved by the Board: the Finance & Property Committee, the Education Committee, the Development Committee, the Health & Safety Committee, the Scholarship Sub-Committee and the Staff Affairs Sub-Committee each meet regularly throughout the year, and the Nomination Committee, the Remuneration Sub-Committee and the Audit SubCommittee meet annually.
d. Remuneration of Key Management Personnel The College addresses the remuneration of key management personnel via the Remuneration Sub-Committee and by following the teachers national pay scales and established uplifts approved by the Governors for promoted teaching staff. For those staff not remunerated by reference to national pay scales, the Governors serving on the Remuneration Sub-Committee set remuneration annually by reference to sector salary survey information and local market and sector conditions.
e. Principal Address Address: Schoolhill Aberdeen AB10 1FE Website: www.rgc.aberdeen.sch.uk
The Board of Governors meets at least four times a year to review financial and operational performance and strategy and is supported by a number of committees.
f. Advisors Auditors: Johnston Carmichael LLP Bishop’s Court 29 Albyn Place ABERDEEN AB10 1YL
Extracts from the College’s 2017 Annual Report and Financial Statements 13
Statement of Disclosure to Auditor The Governors confirm that:
a) So far as they are aware, there is no relevant audit information of which the College’s auditors are unaware, and
b) They have taken all steps that they ought to have taken as Governors in order to make themselves aware of any relevant audit information and to establish that the College’s auditors are aware of that information.
By order of the Board of Governors
PROFESSOR JAMES D. HUTCHISON MBChB, PhD, FRCSEd, FRCSEng, FRCSGlas, FFSTEd Chairman October 2017
Prof J Hutchison MBChB Phd FRCSEd FRCSEng FRCSGlas FFSTEd
Chairman of Governors
W J Rattray MA CA
14 Extracts from the College’s 2017 Annual Report and Financial Statements
Independent Auditors Report to the Governors of Robert Gordon College We have audited the financial statements of Robert Gordon’s College for the year ended 31 March 2017 which comprise the Statement of Financial Activities, Balance Sheet, Income and Expenditure Account, Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 ‘‘The Financial Reporting Standard applicable in the UK and Republic of Ireland”. This report is made solely to the College’s Governors, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the City of Aberdeen Educational Endowments Schemes 1985 (as amended by 1988 and 1991 amendment schemes). Our audit work has been undertaken so that we might state to the College’s Governors those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the College and its Governors, as a body, for our audit work, for this report, or for the opinions we have formed.
Respective Responsibilities of Governors and Auditors As explained more fully in the Governors’ Responsibilities Statement (set out on page 12), the Governors are responsible for the preparation of financial statements which give a true and fair view. We have been appointed as auditor under section 44(1) (c) of the Charities and Trustee Investment (Scotland) Act 2005 and the City of Aberdeen Educational Endowment Schemes 1985 and report in accordance with regulations made under these Acts. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.
Scope of the Audit of the Financial Statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the College’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Governors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Governors’ Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on Financial Statements In our opinion the financial statements: • give a true and fair view of the state of the College’s affairs as at 31 March 2017 and of its incoming resources and application of resources, for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the City of Aberdeen Educational Endowments Schemes 1985 (as amended by 1988 and 1991 amendment schemes).
Matters on which we are Required to Report by Exception We have nothing to report in respect of the following matters where the Charity Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: The information given in the Governors’ Annual Report is inconsistent in any material respect with the financial statements; or proper accounting records have not been kept; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit.
Bishop’s Court 29 Albyn Place Aberdeen AB10 1YL Johnston Carmicheal LLP Statutory Auditor
Johnston Carmichael LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
Extracts from the College’s 2017 Annual Report and Financial Statements 15
Statement Of Financial Activities For The Year Ended 31 March 2017
INCOME AND ENDOWMENTS FROM: Charitable Activities: Tuition fees Other income
Raising Funds: Investment income Donations and legacies
Special Funds Restricted Endowment Income £’000 £1000
Unrestricted funds £'000
Restricted Appeal funds £’000
Total Income and endowments EXPENDITURE ON: Charitable Activities: 6 Teaching costs Property costs Teaching facilities General running costs Management and administration Governance costs Pupil oncosts Fund awards 7 Interest paid on loans and overdraft Interest on defined benefit pension 22
2017 Total £’000
2016 Total £'000
(8,792) (1,474) (297) (4,202) (1,813) (46) (528) (265)
(127) (71) (25)
(8,792) (1,601) (297) (4,202) (1,813) (46) (599) (594)
(8,753) (2,335) (265) (4,129) (1,699) (42) (579) (493)
Total charitable expenditure
Raising Funds: Fundraising and publicity costs
Net gains/(losses) on Investments
16 Extracts from the College’s 2017 Annual Report and Financial Statements
Statement Of Financial Activities For The Year Ended 31 March 2017 Note Note
Unrestricted funds £'000
Restricted Appeal funds £'000
Special Funds Restricted Income Endowment Endowment
2016 Total £'000
2016 2017 Total Total £'000 £'000
Net movement in funds
Reconciliation of funds Fund balances at 31 March 2016 2015
Fund balances at 31 March 2017 2016
Transfers between funds Acturial gains/(losses) gaines/(losses)on on defined benefit pension defined benefit pension plans plans 22 24
All items dealt with in arriving at the net income/(expenditure) for the year relate to continuing activities.
Extracts from the College’s 2017 Annual Report and Financial Statements 17
Income and Expenditure Account For The Year Ended 31 March 2017 2017 £’000
Charitable income Donations and legacies Realised gain on investments Investment income
18,144 1,700 17 302
18,049 895 11 279
Expenditure Charitable expenditure Raising Funds Interest payable
(17,944) (186) (308)
(18,295) (237) (403)
1,725 179 839
299 214 (658)
NET INCOME Reconciliation to Statement of Financial Activities: Net Income per above Special funds - Endowment income Unrealised gain/(loss) on investments Net (expenditure)/Income
All items dealt with in arriving at the operating surplus for the year relate to continuing activities.
18 Extracts from the College’s 2017 Annual Report and Financial Statements
Balance Sheet For The Year Ended 31 March 2017
Fixed Assets Tangible assets Investments Current Assets Debtors: amounts falling due within one year Bank and cash Current Liabilities Creditors: amounts falling due within one year Net Current Assets/(Liabilities)
Total Assets Less Current Liabilities Creditors: amounts falling due after more than one year
Net Assets Excluding Pension Liability 22
Defined Benefit Pension Liability Net Assets FUNDS OF THE COLLEGE: Unrestricted funds Special funds: Restricted endowment Restricted income Appeal funds - restricted TOTAL FUNDS
The financial statements were approved by the Board of Governors on 20th November 2017 and signed on their behalf by: Prof J Hutchison MBChB Phd FRCSEd FRCSEng FRCSGlas FFSTEd Chairman of Governors W J Rattray MA CA
Extracts from the College’s 2017 Annual Report and Financial Statements 19
Cash Flow Statement For The Year Ended 31 March 2017 Notes Net cash provided by operating activities Investing activities Dividends and interest received Purchase of tangible fixed assets Purchase of investments Investment of donations earmarked for bursaries Receipts from sale of tangible fixed assets Net cash provied by/(used in) investing activities Financing activities Interest paid on bank loan and overdraft Repayment of bank loan New bank loan drawn Appeal fund donations earmarked for bursaries Net cash (used in) provided by financing activities Net Increasein cash and cash equivalents Cash and cash equivalents at start of reporting period Cash and cash equivalents at end of reporting period
2016 £'000 1,493
2,545 279 (2,053) (401) 1,545
302 (280) (527) (195) 2,946 2,246
863 (318) (1,904) 1,314 214
(232) (13,357) 10,500 179
1,881 140 2,021
169 (29) 140
Notes To The Financial Statements For The Year Ended 31 March 2017 1 Accounting Policies Charity Information
Robert Gordon’s College is a registered charity, registered in Scotland. The registered office is noted in Section 6 of the Governors report. The nature of the College’s operations and principal activities are set out within the Governors report in Section 1. General Information and Basis of Preparation These accounts have been prepared in accordance with FRS 102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland” (FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102 (“SORP 2015 (FRS 102)”) and UK Generally Accepted Accounting Practice effective from 1 January 2015. The financial statements have also been prepared in accordance with the Charities Accounts (Scotland) Regulations 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the City of Aberdeen Educational Endowments Schemes 1985 (as amended by 1988 and 1991 amendment schemes). The company is a Public Benefit Entity as defined by FRS 102. The accounts are prepared in sterling, which is the functional currency of the College. Monetary amounts in these financial statements are rounded to the nearest £000.
20 Extracts from the College’s 2017 Annual Report and Financial Statements
The accounts have been prepared on a going concern basis under the historical cost convention, modified by the carrying of investments at fair value. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated. Going Concern At the time of approving the financial statements, the Governors have a reasonable expectation that the College has adequae resources to continue in operational existence for the foreseeable future Thus the Governors continue to adopt the going concern of accounting in preparing the accounts. Fees Tuition and other fees consist of charges for the financial year and include scholarships, bursaries and other contributions. All fees are recognised as income in the period in which the related tuition and other services are provided. Fees invoiced in advance are included in deferred income and fees invoiced in arrears are included in accrued income. The cost of scholarships and bursaries funded
by the College’s Unrestricted, Special and Appeal Funds is allocated to the relevant fund and is included within expenditure on charitable activities. Donations and Legacies Donations are recognised when the College’s entitlement to the income is probable. Donations subject to specific wishes of the donors are allocated to the relevant restricted funds, or to endowment funds where the amount is required to be held as permanent capital. Where the receipt of donations can be attributed to appeals run by the Development Office, these donations are treated as being restricted to the purposes for which the appeal was raising funds. Donations receivable for the general purposes of the College are credited to unrestricted funds, but may be subsequently designated for specific projects or purposes by the Governors. For legacies, income is recognised when the College has entitlement and the amount can be reliably measured. This is generally the earlier of the charity being notified of an impending distribution or the legacy being received. Where the College has been notified of a legancy within an accounting period but amounts are yet to be received, all information available is used to determine the amount expected to be received; however, on occasion, there is insufficient information available for a reliable measurement. On these occasions, the legacy is recognised when the amount becomes reliably measurable. Investment Income Investment income is earned through holding investment portfolios and includes both dividends and interest. Income is recognised in the period to which it relates.
over their estimated useful economic lives as follows: Buildings over 10-40 years Plant and equipment over 10 years Teaching equipment over 4 years Fixtures and fittings over 4 years Freehold land is not depreciated. Impairment of Fixed Assets At each reporting date, the College reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that those assets may have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any) by comparing this to the asset’s carrying value. The recoverable amount of the asset is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of future cash flows before interest and tax, obtained as a result of the asset’s continued use. Cash and Cash Equivalents Cash and cash equivalents include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. Financial Instruments The College has elected to apply the provisions of Section 11 “Basic Financial Instruments” and Section 12 “Other Financial Instruments” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the College’s balance sheet when the College becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Expenditure Expenditure is accounted for on an accruals basis and is allocated to expense headings on a direct cost basis. The irrecoverable element of VAT is included with the item of expense to which it relates. Governance costs comprise the costs of running the charity, including strategic planning for its future Basic Financial Assets development, external audit fees, legal advice and all costs Basic financial assets, which include trade and other of complying with constitutional and statutory requirements, receivables and cash and bank balances, are initially such as the costs of preparing statutory accounts and measured at transaction price including transaction costs satisfying public accountability. and are subsequently carried at amortised cost using the effective interest method unless the arrangement Fixed Assets constitutes a financing transaction, where the transaction Tangible fixed assets are stated at cost less accumulated is measured at the present value of the future receipts depreciation. discounted at a market rate of interest. Expenditure on tangible fixed assets is capitalised Trade debtors, loans and other receivables that have fixed on intital recognition. Subsequent expenditure is only or determinable payments that are not quoted in an active capitalised when it is probable that there will be future market are classified as “loans and receivables”. Loans economic benefits attributable to the item. and receivables are measured at amortised cost using the Depreciation effective interest rate method, less any impairment. Depreciation is provided to write off the cost less the estimated value of tangible fixed assets, by equal instalments
Extracts from the College’s 2017 Annual Report and Financial Statements 21
Other Financial Assets Other financial assets, including investments in equity instruments which are not subsidiaries, associates, or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in income and expenditure. Impairment of Financial Assets Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in income and expenditure. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previoiusly been recognised. The impairment reversal is recognised in income and expenditure. Basic Financial Liabilities Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognition of Financial Liabilities Financial liabilities are derecognised when the College’s contractual obligations expire or are discharged or cancelled. Pension Schemes The College contributes to the Scottish Teachers’ Superannuation Scheme (STSS) and to the North East Scotland Pension Fund (NESPF) at rates set by the Schemes’ Actuaries and advised to the College by the Schemes’ Administrators. The schemes are multi-employer pension schemes.
22 Extracts from the College’s 2017 Annual Report and Financial Statements
The NESPF scheme is funded, with the assets of the scheme held separately from those of the College in a separate trustee-administered fund. Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained triennially and are updated at each balance sheet date. The difference between the market value of the assets of the scheme and the present value of accrued pension liabilities is shown as an asset or liability on the balance sheet. Any difference between the expected return on assets and that actually achieved, is recognised as a gain or loss in the statement of financial activities, along with differences which arise from experience of assumption changes. The cost of providing benefits under the scheme is determined using the projected unit credit method, and is based on actuarial advice. The change in the net defined benefit pension deficit arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised in income and expenditure in the period in which they arise. The net interest element is determined by multiplying the net defined benefit pension deficit by the discount rate, taking into account any changes in the net defined benefit pension deficit during the period as a result of contribution and benefit payments. The net interest is recognised in income and expenditure. Remeasurement changes comprise actuarial gains and losses and the return on the net defined benefit pension deficit excluding amounts included in net interest. These are recognised immediately in other recognised gains and losses within the statement of financial activities in the period to which they relate and are not reclassified to income and expenditure in subsequent periods. The SSTS scheme is unfunded and it is not possible to identify the assets and liabilities of the scheme which are attributable to the College. In accordance with FRS 102 therefore, the scheme is accounted for as a defined contribution scheme and pension costs charged in the accounts represent the contributions payable by the College in the year in accordance with the rules of the scheme. Employee Benefits The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the College is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Taxation The College has been granted charitable status by HMRC and is not therefore liable for corporation tax on charitable income and gains.
Holiday pay accrual The holiday pay accrual is calculated at each balance sheet date using approximations to the pattern of holiday usage, and average staff pay rates.
Operating Leases The annual rentals for operating leases are charged to the income and expenditure account on a straight line basis over the lease term.
Depreciation rates Depreciation is calculated to fully write off the cost of assets over their estimated useful life. Management estimate the useful life of each asset. Details of the depreciation charged in the period are in Note 10.
Funds Endowment funds represent funds on which the donor has stipulated that the capital balance should be permanently maintained. This includes monies raised by Development Office under the “Gordon’s Forever” campaign to build the College’s endowment funds to provide bursaries.. Restricted funds represent funds whose use is restricted either by the donor or by the terms of an appeal for particular projects. Unrestricted funds represent the remaining funds of the College. Donations received are allocated to unrestricted funds unless the donor has specified otherwise. Unrestricted funds are subdivided into general unrestricted funds, which are available for everyday expenditure of the College; and designated funds, which the Governors have designated for specific projects or purposes, such as capital projects and bursaries.
Bad debt provision Management judges the recoverability of debtors and makes a provision where the debt is not expected to be recovered. Legacy Income Management have used all available information to estimate the value of a signficant legacy that was notified to the College prior to the year end but not yet received. Details are contained in Note 12.
Critical Accounting Estimates and Judgements In the application of the College’s accounting policies, the Governors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The following judgements or estimation uncertainties have a significant effect on amounts recognised in the financial statements: Defined benefit pension deficit The NESPF scheme is accounted for as a defined benefit pension scheme using actuarial assumptions. These assumptions involve significant judgements and are agreed on through discussions with the scheme’s actuaries. Details of the assumptions are contained in Note 24.
Extracts from the College’s 2017 Annual Report and Financial Statements 23
265 301 25
212 244 33
142 18 30
163 72 30
Appeal Funds: Gordon’s Tomorrow Gordon’s Today General donations Donations earmarked for bursaries - Gordon’s Forever
91 60 1,549 179
175 720 214
Attributable to funds as follows:
Unrestricted Restricted - Appeal Funds Special Funds - Restricted endowment
1,549 151 179
2 Fee income Fees payable by parents Fees payable from scholarships, bursaries and other contributions Total fee income Total fee income includes scholarships, bursaries and other contributions as follows: Unrestricted Funds of the College Special Funds of the College Appeal Funds of the College External contributors: - Aberdeen Endowments Trust - Other external contributors
All amounts included above were attributable to unrestricted funds.
3 Other Income Out of school care Fee payment charges Other income
All amounts included above were attributable to unrestricted funds.
4 Investment income Income from listed fixed asset investments All amounts included above were attributable to special unrestricted funds - income
5 Donations and legacies
General donations include £1,500,000 in respect of a legacy notified as due to the College before the balance sheet date.
24 Extracts from the College’s 2017 Annual Report and Financial Statements
6 Analysis of total expenditure
Staff costs £'000
Other costs £'000
2017 Total £'000
2016 Total £'000
(8,792) (1,953) (1,495) -
(1,012) (584) -
(589) (297) (1,665) (318) (46) (599) (594)
(8,792) (1,601) (297) (4,202) (1,813) (46) (599) (594)
(8,753) (2,335) (265) (4,129) (1,699) (42) (579) (493)
(4,108) (232) (76)
(17,944) (232) (76)
(18,295) (318) (85)
(17,911) (223) (304)
(18,588) (99) (248)
Charitable Activities: Teaching costs Property costs Teaching facility costs General running costs Management and administration Governance costs Pupil oncosts Fund awards Interest on loans and overdrafts Interest on defined benefit pension Total charitable expenditure Raising funds: Fundraising and publicity costs
All expenses noted above are allocated directly. Attributable to funds as follows: Unrestricted Resticted - Appeal Funds Special Funds - Restricted income
7 Fund Awards Unrestricted Funds £'000
Special Funds Income £'000
Appeal Funds £'000
2017 Total £'000
(265) (25) (304)
(212) (33) (248)
Scholarships Prizes and learning awards
Attributable to funds as follows: Unrestricted Restricted - Special Funds Special Funds - Restricted income
All of the educational awards were made to individuals.
Extracts from the College’s 2017 Annual Report and Financial Statements 25
8 Employee information
The average number of persons employed by the College during the year was:
Full Time equivalent by activity: Academic Non-academic
Total staff numbers by activity: Academic Non-academic
Staff costs: Wages and salaries Social security costs Pension costs Other staff costs
Remuneration of key management personnel
(9,761) (991) (1,577) (69)
(9,871) (765) (1,569) (67)
All five (2016 - five) employees were accruing benefits under defined benefit pension schemes (Note 22). The number of employees who received remuneration during the year in the following ranges was: 2017 2016 £60,000 - £69,999 £80,000 - £89,999 £90,000 - £99,999 £100,000 - £109,999 £150,000 - £159,999
1 2 1 1
2 1 1 1
All five (2016 - five) employees were accruing benefits under defined benefit pension schemes. (note 22).
26 Extracts from the College’s 2017 Annual Report and Financial Statements
9 Expenditure 2017 Charitable Activity £'000 expenditure includes: Depreciation (1,596) Governance expenditure includes: Auditors remuneration for: Audit of financial statements (16) Payroll services (28) Other services (27)
2016 £'000 (1,321)
(16) (12) (4)
The Governors do not receive any remuneration. During the year, two (2016 - three) governors received £736 (2016 - £589) for the reimbursement of travel expenditure incurred on College business.
10 Fixed assets Land and buildings £'000
Plant and equipment £'000
Teaching equipment £'000
Fixtures and fittings £'000
Cost At 1 April 2016 Additions
At 31 March 2017
Depreciation At 1 April 2016 Charge for year
At 31 March 2017
At 31 March 2017
At 31 March 2016
Net Book Value
The Governors are satisfied that the market value of land and buildings is in excess of the net book value stated above. Land and buildings includes land at a cost of £534,000 (2016 - £534,000) which is not depreciated.
Opening market value Additions Disposals Movement on cash deposits Movement in market value Closing market value Listed Cash deposits
Closing historical cost of listed investments
Listed Investments 2017 £'000
Listed Investments 2016 £'000
5,857 1,823 (1,155) 672 839
6,108 667 (323) 63 (658)
Extracts from the College’s 2017 Annual Report and Financial Statements 27
Fees receivable 1,548 Tax refundable on gift aid 34 Other debtors 1,522 Deferred consideration Prepayments and accrued income 332
2,270 157 259 2,946 174
Other debtors includes £1,500,000 recognised in respect of a legacy notified as due to the College before the balance sheet date. £1,287,281 has been received after the balance sheet date.
Bank loans At the year end the College had a bank loan totalling £7,449,000 as shown in notes 14 and 15. This bank loans and the overdraft are secured by a standard security over the land and buildings of the College. The bank loan is repayable in quarterly instalments of £105,000 per quarter until July 2021, wih the balance repayable at the end of the term. The loan is subject to an interest rate of 1.9% per annum over London Interbank Offered Rate (LIBOR).
15 Creditors: amounts falling due after more than one year Bank Loans
13 Bank and cash
General fund Special funds Appeal funds
1,515 370 136
(1) 330 897
Bank overdraft Bank loans (420) Trade creditors (578) Accruals (836) Tax and social security (234) Other creditors (606) Fees paid in advance (1,247)
(1,086) (7,681) (442) (1,203) (229) (622) (1,269)
Loan maturity analysis In more than one year but not more than two years In more than two years but not more than five years
14 Creditors: amounts falling due in less than one year 2017 £'000
28 Extracts from the College’s 2017 Annual Report and Financial Statements
16 Financial instruments Categories of financial assets and financial liabilities The following table sets out the College’s classification and carrying amount for each type of non-derivative financial asset and liability. Amortised cost At 31 March 2017 Fair value through Loans and receivables Non-derivative Total income and expenditure £’000 financial liabiities £’000 £’000 £’000 Assets Investments 7.436 -7,436 Cash and cash equivalents 2,021 2,021 Trade and other debtors 3,070 3,070
Liabilities Loans Trade and other creditors
Amortised cost Loans and receivables Non-derivative £’000 financial liabiities £’000
At 31 March 2016 Fair value through income and expenditure £’000 Assets Investments Cash and cash equivalents Trade and other debtors Liabilities Loans Overdrafts Trade and other creditors
5,857 1,226 5,475
(10,306) (1,086) (2,267)
(10,306) (1,086) (2,267)
Debtors and creditors that are not financial instruments, e.g. tax, prepayments, deferred income, etc. are excluded from the analysis above. Fair value Investments are held at fair value through income and expenditure. Fair value is determined by reference to quoted market prices in active markets and is not subject to any valuation techniques. Financial risk management The College has exposure to the following risks arising from financial instruments measured at fair value through income and expenditure: Credit risk Credit risk is the risk of financial loss to the College if a counterparty to a financial instrument fails to meet its contractual obligations. The College’s exposure to this risk is mainly due to the element of its investment portfolio that is invested in fixed interest instruments. The College’s policy is to diversify its investments in low to medium risk instruments across several funds, which in turn invest in numerous individual bonds. Market risk Market risk is the risk that changes in market prices, such as equity prices, will affect the College’s income or the value of its investment holdings. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. The College’s policy is to ensure that its investment portfolio is diversified and actively managed by professional fund managers. Investment managers report half yearly to the audit and finance committee with policy being reviewed at this time.
Extracts from the College’s 2017 Annual Report and Financial Statements 29
17 Unrestricted funds Revenue: Funds at 1 April 2016 Net income and expenditure Transfers from Appeal Funds - Gordon’s Today
Total £'000 14,283 248 461
Funds at 31 March 2017 14,992 Unrestricted funds are retained to help finance the ongoing activities of the College. The unrestricted funds balance includes legacies of £1,916,000 which the Governors expect to designate for specific purposes. Transfers are explained in Note 19.
Capital: Funds at 1 April 2016 Gain on sale of investments Unrealised loss on investments Donations for bursaries - Gordon’s Forever Transfers from Appeal Funds - Gordon’s Today Funds at 31 March 2017 Revenue: Funds at 1 April 2016 Dividends and interest on investments
5,959 17 839 179 17 7,011
292 302 594
Awards/payments in year Funds at 31 March 2017
The above funds are held as follows:
Total £'000 Fixed assets Investments Net current assets Long term liabilities Defined benefit pension liability
18 Special funds
24,441 336 1,239 (7,029) (3,995)
The College's special funds consist of a number of individual scholarship, trust and prize funds, set up by individual donors. These include donations received as a result of appeals by the Development Office under the “Gordon’s Forever” banner. The capital is held permanently and the income is used to fund bursaries, scholarships and prizes in perpetuity. Each fund is allocated its proportion of investment income and gains and losses and bears its own expenses. Transfers are explained in Note 19.
The above special funds are held as follows: Capital £'000 Fixed assets Investments 6,975 Net current assets 36 Long term liabilities Defined benefit pension liability Total
30 Extracts from the College’s 2017 Annual Report and Financial Statements
125 165 -
7,100 201 -
19 Appeal funds - restricted
Funds at 1 April 2016 Donations received Resources expended - property costs Resources expended - pupil oncosts Resources expended - fund awards Transferred to Unrestricted Funds Transfers to Special Funds - Capital Transfers to Gordon’s Tomorrow Funds at 31 March 2017
Gordon’s Total £'000
Gordon’s Tomorrow £'000
Total restricted funds £'000
605 60 (71) (25) (461) (17) (13) 78
4,849 91 (127) 13 4,826
5,454 151 (127) (71) (25) (461) (17) 4,904
The Appeal funds represent funds raised under the appeals run by the Development Office: ‘Gordon’s Today, for new initiatives and projects to benefit pupils in an immediate way; and ‘Gordon’s Tomorrow’ for capital projects to develop the campus. The above transfers from ‘Gordon’s today’ include amounts received in previous years, where the donors’ intentions have now been clarified. The above funds held as follows: Gordon’s Total £'000
Gordon’s Tomorrow £'000
Total restricted funds £'000
Fixed Assets Investments Net Current assets Long term liabilities Defined benefit pension liability
4,808 18 -
4,808 96 -
21 Analysis of cash and cash equivalents
20 Reconciliation of net income/(expenditure) to net cash provided by Operating Activities.
Net income /(expenditure) for the reporting period Depreciation of fixed assets Difference between current service cost and cash contributions to defined benefit pension scheme Increase in debtors Decrease in creditors Interest paid on bank loan and overdraft Dividends and interest received (Gain)/Loss on investments Receipt of endowment income Net cash provided by operating activities
151 (576) (264) 232 (302) (856) (179)
201 (231) (125) 318 (279) 647 (214)
Cash and cash equivalents consist of: 2017 '000 Cash in hand and at bank 13 Bank overdraft 14
Extracts from the College’s 2017 Annual Report and Financial Statements 31
22 Pension Obligations The College participates in two multi-employer defined benefit pension schemes: the Scottish Teachers’ Pension Scheme (“STSS”) and the North East Scotland Pension Fund (“NESPF”). Scottish Teachers’ Superannuation Scheme (STSS) The College is unable to identify its share of the underlying assets and liabilities for the STSS on a consistent and reliable basis. This scheme has therefore been treated as defined contribution scheme and contributions are recognised as an expense as they become payable. The last full actuarial valuation was carried out at 31 March 2012 and the results of this valuation were rolled forward to give an estimated liability of £29.4 billion across all employers in the scheme at 31 March 2016 (latest available). No estimate has been made of the College’s share of this liability. As the scheme is unfunded there can be no surplus or shortfall. Pension contribution rates will be set by the scheme actuaries at a level to meet the costs of pensions as they accrue. Financial Assumptions as at 31 March 2016:- Rate of return (discount rate) 3.60% Rate of return in excess of:Earnings increases:- -0.60% Price increases:- 1.37% Contributions payable to STSS for the year were £1,079,000 (2016 - £974,000) and outstanding contributions at the year end were £89,000 (2016 - £92,000). The contribution rate payable by the College during the year was 17.2% of pensionable salaries. North East Scotland Pension Fund (NESPF) The valuation used for the FRS 102 disclosures for the NESPF scheme has been based on the most recent actuarial valuation at 31 March 2014 and updated by an independent qualified actuary to take account of the requirements of FRS 102 in order to assess the liabilities of the scheme at 31 March 2017. Scheme assets are stated at their market value at 31 March 2017. The contribution rate payable by the College during the year was 20.4% of pensionable salaries. The College’s contributions have been set at 20.4% pf pensionable salaries for the year ended 31 March 2018.
1. Amounts recognised in the balance sheet 2016 2017 £’000 £’000 9,162 (13,157)
3. Amounts included within other recognised gains and losses 2017 £’000
Actual return less expected return on pension scheme assets 1,317 Experience gains and losses arising on scheme liabilities (2,851)
Fair value of plan assets Present value of funded obligations Deficit in scheme 2. Amounts recognised in net income/(expenditure) Included within total resources expended Current service cost Administration expenses Net finance costs included within total resources expended Net interest cost
4. Changes in the present value of the defined benefit obligation 2017 £’000 Defined benefit obligation on 1 April 2016 Current service cost Interest cost Contributions by scheme participants Actuarial (gains)/losses Benefits paid Defined benefit obligation at 31 March 2017
9,600 478 344 131 2,851 (247) 13,157
5. Changes in the fair value of plan assets 2017 £’000 Fair value of plan assets on 1 April 2016 Interest on plan assets Actuarial gains/(losses) Administration expenses Contributions by employer Contributions by scheme participants Benefits paid
7,290 268 1,317 (8) 411 131 (247)
Fair value of plan assets at 31 March 2017
32 Extracts from the College’s 2017 Annual Report and Financial Statements
6. Major categories of plan assets as a percentage of total plan assets
Equities Bonds Property Diversified growth funds Private equity Cash/liquidity
2017 68.0% 12.7% 7.0% 5.5% 5.3% 1.5%
2016 77.4% 13.3% 8.5% 0.0% 0.0% 0.8%
7. Principal actuarial assumptions at the balance sheet date
Discount rate Rate of CPI inflation Future salary increases (2.5% for first 5 years) Future pension increases Life expectancy of members: Retiring today: Males Females Retiring in 20 years: Males Females
2017 2.6% 2.3% 3.8% 2.3%
2016 3.6% 2.0% 3.5% 2.0%
The return on plan assets was 21.58% (2016 - 2.27%)
23 Control Robert Gordonâ€™s College is controlled by the Board of Governors, as determined by the statutory instrument City of Aberdeen Educational Endowment Scheme 1985.
Extracts from the Collegeâ€™s 2016 Annual Report and Financial Statements 33
Schoolhill, Aberdeen, Scotland AB10 1FE Tel 01224 646346 www.rgc.aberdeen.sch.uk Robert Gordonâ€™s College is a charity registered in Scotland, No. SC000123
Highlights from the Board of Governors Report can be viewed here. Robert Gordon's College is a charity registered in Scotland, No SC000123.
Published on May 16, 2018
Highlights from the Board of Governors Report can be viewed here. Robert Gordon's College is a charity registered in Scotland, No SC000123.