Recommendation 24

Just as there are large disparities in the importance of different incomes streams to Scottish universities, the same disparities exist—and have existed for a long time—in the financial health of institutions. Audit Scotland noted pre-pandemic that: While the sector overall is in good financial health, this masks significant variation across universities, and many sector-level indicators are disproportionately affected by the financial results of three of the four ancient universities. At an aggregate sector level, the operating position has remained broadly stable [between 2014 and 2018], but six universities reported deficits every year. Between 2014–15 and 2017–18, the underlying position for the sector improved, but the position was worse for six universities [of 18].44 41 Q4 42 Audit Scotland, Finances of Scottish universities, September 2019, page 9 43 Audit Scotland, Finances of Scottish universities, September 2019, p 13 ‘Exhibit 2’ 44 Audit Scotland, Finances of Scottish universities, September 2019, page 9 14 Universities and Scotland