RushesToo
Member
- Location
- Fingringhoe
I wonder who owns the cash....
Probably not the University of Reading
Cash cows
In Saturday's Guardian, sector finance expert Andrew McGettigan broke the news that the University of Reading has referred itself to the Charity Commission and the OfS over questions surrounding the handling of cash in a trust. The National Institute for Research in Dairying had closed in 1985 and moved its assets into a trust to develop research into agriculture or food, with the university becoming the sole beneficiary and trustee. Trust land was then sold in 2014/15, but ever since, the cash that raised has shown up in the University of Reading's accounts as owed back to the trust and due within a year, with the figure rising from £40.9m in 14/15 to £121m in the year just gone.
The story inevitably raised questions about the university's financial position, which it was quick to respond to. But it also raises questions about governance and charity law. Most universities are also charities that are exempt from registration with the charity commission because OfS acts as their principal regulator. If the University of Reading's actions turn out to be a problem, questions will be asked about the scrutiny role of auditors, its council, and the OfS itself – its registration process imposed no formal financial or governance conditions when the University of Reading was approved last year. There will certainly be a desire to resolve the issue quickly – another case involving a legacy trust, the University of London and the the Warburg Institute, ended up having to be resolved in the High Court.
Probably not the University of Reading
Cash cows
In Saturday's Guardian, sector finance expert Andrew McGettigan broke the news that the University of Reading has referred itself to the Charity Commission and the OfS over questions surrounding the handling of cash in a trust. The National Institute for Research in Dairying had closed in 1985 and moved its assets into a trust to develop research into agriculture or food, with the university becoming the sole beneficiary and trustee. Trust land was then sold in 2014/15, but ever since, the cash that raised has shown up in the University of Reading's accounts as owed back to the trust and due within a year, with the figure rising from £40.9m in 14/15 to £121m in the year just gone.
The story inevitably raised questions about the university's financial position, which it was quick to respond to. But it also raises questions about governance and charity law. Most universities are also charities that are exempt from registration with the charity commission because OfS acts as their principal regulator. If the University of Reading's actions turn out to be a problem, questions will be asked about the scrutiny role of auditors, its council, and the OfS itself – its registration process imposed no formal financial or governance conditions when the University of Reading was approved last year. There will certainly be a desire to resolve the issue quickly – another case involving a legacy trust, the University of London and the the Warburg Institute, ended up having to be resolved in the High Court.
