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REPORTS

Report of the Council on amendments to Statute G, III and G, VI

The COUNCIL beg leave to report to the University as follows:

1. The Council have received, via the Finance Committee, a submission from the Colleges' Committee for the amendment of the form of College accounts currently set out in Schedule D to the University's Statutes.

2. The current statutory accounts have been virtually unchanged since they were imposed by the University of Cambridge Commissioners in 1926. In 1997 the Bursars' Committee set up a College Accounts Working Party to review the form of the accounts with a view to proposing to the Council that they be replaced by a form of accounts that meets modern accounting standards.

3. At their meeting of 8 February 2003, the Colleges' Committee endorsed a set of pro-forma accounts (the Recommended Cambridge College Accounts (RCCA)) which had been drafted by the Working Party following extensive consultation with all the Colleges and which had been accepted in principle by the Bursars' Committee. RCCA comply with current UK generally accepted accounting principles and accounting standards.

4. The majority of Colleges have indicated that they wish to implement RCCA at the earliest opportunity, to which end most are running both forms of accounts (RCCA and statutory accounts) in parallel in the current year.

5. The Council, on the advice of the Finance Committee, have agreed to recommend that the University accept the format of RCCA in place of the accounts set out in Schedule D to the Statutes and to propose a revision of Statute G, III, which governs the accounts of the Colleges, and Statute G, VI, which governs the kitchen management of the Colleges, at the same time.

6. Statute G, III currently reads as follows:

ACCOUNTS

1. Every College shall close its accounts in each year on a day not earlier than 30 June and not later than 30 September, and shall have them audited by at least one qualified accountant or actuary not being a member of the Governing Body.

2. Every College shall send to the Treasurer on or before 31 December next after the closing of its accounts

(i) a statement of its accounts as nearly as practicable in the form contained in Schedule D, or in such modified form as the University may from time to time direct on the recommendation of the Finance Committee of the Council,
(ii) a certificate in one or other of the two forms contained in Schedule E signed by the Auditor or Auditors.

If any Auditor refuses to sign such a certificate, he or she shall state in writing the reasons for so refusing, and the College shall send the statement to the Treasurer.

7. Under the revised Statute G, III, an Inter-Collegiate Committee on College Accounts would be established, which would have representation from each College. This Committee would keep under review the format of RCCA and make recommendations for any amendments which are required to take account of developments in accounting practice. In addition, the Committee will replace the Inter-Collegiate Committee on Kitchen Management established under Statute G, VI. The separate requirement under Statute G, VI to submit detailed audited kitchen accounts will no longer be necessary if the RCCA is approved and the Council therefore propose that Statute G, VI should be repealed.

8. The Council consider that RCCA (comprising the Income and Expenditure Account, the Statement of Total Recognized Gains and Losses, the Balance Sheet, and the Cash Flow Statement) should be published in Ordinances as a schedule to regulations to govern the presentation of College accounts rather than as a schedule to the revised Statute as is the present case. Section 4(i) of the revised Statute sets out the requirements for the Auditors' reports. The Council consider that it is no longer necessary to prescribe the exact form of the Auditors' Certificates as currently set out in Schedule E. The Council therefore propose that both Schedules D and E should be repealed.

9. Two Colleges have indicated that they intend to continue for the time being to use the current statutory accounts. The remainder have indicated that they would wish to implement RCCA at the earliest opportunity, although in some cases it may not be possible for them to meet all the requirements of RCCA in 2003-04, the desired implementation year. The College Accounts Working Party are, however, confident that the great majority of Colleges will have no difficulty in working to a true and fair audit standard in 2003-04. A Temporary Statute has been drafted to enable Colleges either to defer the change to RCCA by one year or to continue to use the current form of accounts.

10. The Council recommend

I. That, subject to the approval of Her Majesty in Council, the Statutes of the University be amended as set out below, and that these amendments be submitted under the Common Seal of the University to Her Majesty in Council for approval.

Statute G

OBLIGATIONS OF COLLEGES

Chapter III

ACCOUNTS

By replacing sections 1 and 2 by the following:

1. Every College shall close its accounts in each year on a day not earlier than 30 June and not later than 30 September, and shall have them audited by a qualified Auditor not being a member of the Governing Body.

2. There shall be an inter-Collegiate Committee on College Accounts composed of representatives of the several Colleges, to which each College shall be entitled to appoint one member.

It shall be the duty of the Committee

(i) to meet at least once a year;
(ii) to consider the form of the Recommended Cambridge College Accounts, having regard to developments in accounting practice generally;
and
(iii) to make recommendations to the Finance Committee of the Council as it deems necessary for the amendment of the Recommended Cambridge College Accounts.

3. Except as provided by Statute T, 54, every College shall when preparing its accounts:

(i) have regard to the Recommended Cambridge College Accounts as determined from time to time by the University on the recommendation of the Finance Committee of the Council, made after considering the advice of the Inter-Collegiate Committee on College Accounts;
(ii) give a true and fair view of the state of affairs of the College at the end of the financial year and of the income and expenditure of the College for the financial year;
(iii) show the calculation of the payment due under Statute G, II, itemizing each deductible item by reference to the relevant paragraph in that Statute.

4. Every College shall ensure:

(i) that the report of its Auditor includes an opinion that the accounts comply with section 3 of this Statute and that the payment due under Statute G, II has been calculated in accordance with the provisions therein;
and
(ii) that its accounts are submitted, together with the report of its Auditor, to the University Treasurer not later than 31 December next after their closing.

If an Auditor is unable to report that the accounts comply with section 3 of this Statute and that the payment due under Statute G, II has been calculated in accordance with the provisions therein, he or she shall state in writing the reasons for that, and the College shall send the statement to the Treasurer.

Chapter VI

KITCHEN MANAGEMENT

By repealing this Chapter.

Statute T

TEMPORARY PROVISIONS

By adding the following as section 54:

54. The amendments of Statute G, III and the repeal of Schedules D and E made by Grace 00 of ……………....1 shall have effect in respect of the accounts of each College for such year as the College shall specify by notice addressed to the Treasurer and for each year thereafter; provided that

(a) it shall be permissible, in substitution for the requirement of Statute G, III, 3(ii), for a College which has given such notice to prepare its accounts for the year 2003-04, but not for any later year, in such a way that they present a true and fair statement of the transactions of the College for that year and of the resultant balances in the books of the College, Statute G, III, 4(i) to be interpreted accordingly:
(b) a College which has not given such notice shall prepare its accounts in the form that was required by Statute G, III on 1 October 2002.

1 Here will be inserted the number and date of the Grace for the approval of the present recommendations.

SCHEDULE D (FORMS OF COLLEGE ACCOUNTS)

and

SCHEDULE E (FORMS OF AUDITORS' CERTIFICATES)

By repealing these Schedules.

II. That, subject to the approval of Recommendation I, regulations to govern the presentation of College accounts be approved, with effect from the date on which the amendments to the Statutes are approved, as follows:

COLLEGE ACCOUNTS

The accounts prepared annually by each College and the report of its Auditors submitted under the provision of Statute G, III shall conform to the Recommended Cambridge College Accounts set out in the Schedule below, provided that a College which has not given notice under Statute T, 54 that it will use the Recommended Cambridge College Accounts shall prepare its accounts in the form that was required by Statute G, III on 1 October 2002.

SCHEDULE

RECOMMENDED CAMBRIDGE COLLEGE ACCOUNTS(RCCA)

A. [Consolidated] Income and Expenditure Account

INCOME Year to 30 June
£
Total
Previous Year to 30 June
£
Total
Academic fees and chargesxx
Residences, catering, and conferencesxx
Endowment incomexx
[Income Grant from Colleges Fundxx]
[Other incomexx]
 
Total incomexx
 
EXPENDITURE  
Education xx
Residences, catering, and conferences xx
[Other expenditure xx]
 
Total expenditure xx
 
Operating surplus/(deficit) xx
[Contribution under Statute G, II (Note 1) xx]
 
Net surplus/(deficit) £x £x
 
Transfers to/(from) designated funds£x£x
 

B. [Consolidated] Statement of Total Recognized Gains and Losses

  Year to 30 June Previous
year to
30 June
  Restricted funds Unrestricted funds    
  Collegiate purposes
£
Non-Collegiate purposes
£
Designated funds
£
Undesignated funds
£
Total
£
Total
£
Balance brought forwardxxxxxx
 
Unrealised surplus on revaluation of fixed assets xxxxxx
Appreciation/depreciation of investment assetsxxxxxx
Retained surplus/(deficit) for the year xxxxxx
Unspent trust or other restricted fund income retained by fundsxx - -xx
Benefactions and donations xxxxxx
[Capital Grants received from Colleges Fundxxxxx x]
 
Total recognized gains/(losses) for the yearxxxxxx
 
Balance carried forward £x£x£x£x£x£x
 

C. [Consolidated] Balance Sheet

N.B. Items in square brackets may be shown in the notes to the financial statements instead of on the face of the primary statement as presented here. Where subsidiary undertakings are consolidated, the financial information included in the primary statements and notes should be presented both for the College and the Group.
  As at 30 June
£
As at 30 June
previous year
£
FIXED ASSETS
Tangible assets
[Freehold land and buildings xx
Long leasehold land and buildings xx
Equipment x x]
 
Investmentsxx
 
[Freehold land and buildings xx
Long leasehold land and buildings xx
Fixed interest stocks xx
Equities xx
Cash xx]
 
 xx
 
 xx
 
CURRENT ASSETS  
Stocks xx
Debtors xx
Cash xx
 
 xx
Creditors: amounts falling due within one year xx
  
Net current assets/(liabilities) xx
 
Total assets less current liabilities xx
Creditors: amounts falling due after more than one year xx
Provisions for liabilities and charges xx
 
NET ASSETS £x£x
 
Capital and reserves

  Income/
expendable capital funds
Permanent capital funds £ £
Restricted funds held for collegiate purposes *xxxx
Restricted funds held for non-collegiate purposes * xxxx
Unrestricted fundsxxxx
 
TOTAL£x £x £x £x
 

* as defined by University Statute G, II

D. [Consolidated] Cash Flow Statement

N.B. Items in square brackets may be shown in the notes to the financial statements instead of on the face of the primary statement as presented here.
 Year to 30 June
£
Previous year to 30 June
£
A. OPERATING ACTIVITIES 
[Operating surplus/(deficit) x x
Depreciationxx
Profit on sale of investment assetsxx
Interest payablexx
(Increase)/decrease in stocksxx
(Increase)/decrease in debtorsxx
Increase/(decrease) in creditors x x]
Net cash inflow/(outflow) from operating activitiesxx
 
B. RETURNS ON INVESTMENTS AND SERVICING OF FINANCE 
[Retained endowment income x x
Interest receivedxx
Interest paidxx
 
Net cash inflow/(outflow) from returns on investment and servicing of finance x x]
 
[C. CONTRIBUTION TO COLLEGES FUND (Note 1) x x]
 
D. CAPITAL TRANSACTIONS  
[Receipts from sales of investment assetsxx
Donations and benefactions xx
[Capital Grant received from Colleges Fund x x]
 
Total capital receiptsxx
 
Payments to acquire tangible fixed assetsxx
Payments to acquire investment assetsxx
Capital funds expenditurexx
 
Total capital expenditure x x]
 
 
Net cash inflow/(outflow) from capital transactionsxx
 
 
Net cash inflow/(outflow) before financingxx
 
E. FINANCING 
[Long-term loans received x x
Long-term loans repaid x x
 
Net movement in long-term loans x x
 
Advances made to staff and members of Collegexx
Advances repaid by staff and members of Collegexx
Net movement in advances made to staff and members of College x x]
 
Net cash inflow/(outflow) from financing x x
F. INCREASE/(DECREASE) IN CASH £x £x
 
Reconciliation of net cash flow to movement in net liquid assets
Increase in cash in the periodxx
Cash inflow from new loans x x
Cash inflow from liquid resourcesxx
Change in net debt resulting from cash flows x x
 
Movement in net funds in the periodx x
Net funds brought forward x x
 
Net funds carried forward£x£x
 

Notes to the Accounts

(1) CONTRIBUTION UNDER STATUTE G, II
 Year to 30 June
£
Previous year
£
Endowment income as per Income and Expenditure Accountxx
Fund income not brought into Income and Expenditure Accountxx
 
 xx
 
Less: items not assessable to Contribution:  
Donations and bequests      x    
Income of funds held for non-Collegiate purposes      x    
  
 xx
 
Assessable income (Note 2)xx
Less: Deductible items (Note 3)xx
 
 xx
Deductible items brought forward from previous year[s]xx
Net assessable income £x £x
 
Assessment:  
£250,000 @ 3% (4%)xx
£250,000 @ 9% (10%)xx
£xx,xxx @ 18% (19%)xx
 
Contribution payable £x £x
 
Excess of deductible items carried forward £x £x
 
(2) ASSESSABLE INCOME £ Current year
£
£ Previous year
£
 
i.External Revenue:   
 College Estates let at Rack Rentx 
 College Estates let on Building Leasesx 
 Net income from Furnished Lettingsx 
 One-third net proceeds from Timberx 
 Other income from Real Propertyx 
 Dividends and Interest Grossxx 
  
 
Less: 
 Ratesx 
 Insurance of College Buildingsx 
 Agency, Management chargesx 
 Transfer to Estates Repairs and x 
  Improvements Fund 
 Interest paymentsx 
 Sinking Fund payments under Statute G, II, 4(iv)x 
 Other deductions from External Revenuexxxx 
  
 
ii.Trust and Other Funds Subject to Contribution 
 [Specified Funds: listed ]x 
  xx 
  
 
 Summary of Trust and Other Funds  x 
 Income from Bequests pending permanent use  x 
 Amalgamated Trust Reserve Fund 
 or Undistributed Amalgamated Trust   xx x
 Reserve Income 
 ASSESSABLE INCOME  x x
iii.Trust and Other Funds Not Subject to Contribution 
 [Specified Funds: listed]x 
  xx 
  Summary of Trust and Other Funds  xx x
(3) DEDUCTIBLE ITEMS 
 Half sums paid to Scholars, Exhibitioners, and Research Students x 
 Prizes  x 
 Half maintenance of Chapel expenditure  x 
 Net expenditure on College Library  x 
 College Teaching Officers  x 
 College Research Fellows  x 
 College Building Fund (under Statute G, II, 4(vii)) x 
 Donations for University Purposes: 
 Subscription to Appointments Boardx 
 Childcare for studentsx 
 University Counselling Servicex 
 Sports Injury Clinicx 
 Friends of Fitzwilliam Museumx 
 Kettle's Yard Appealx 
 Friends of the University Libraryxx 
  
 
 Other sums approved under Statute G, II, 4(xxiii) xx x

 

9 June 2003ALEC N. BROERS, Vice-ChancellorS. LEATON GRAYJAMES MATHESON
 R. J. ANDERSONIAN LESLIEMARTIN REES
 RICHARD BARNESPAUL LEWISG. A. REID
 JOHN BOYDA. M. LONSDALEM. SCHOFIELD
 PETER GODDARDD. LOWTHERLIBA TAUB
 D. A. GOODD. W. MACDONALDJOAN M. WHITEHEAD

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Cambridge University Reporter, 11 June 2003
Copyright © 2011 The Chancellor, Masters and Scholars of the University of Cambridge.