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

21 July 2003

The Council have considered the remarks made at the Discussion of their Report on 8 July 2003 (Reporter, p. 1174). They have requested the Finance Committee to advise on whether more information should be included in the Schedule to the regulations for the Recommended Cambridge College Accounts (RCCA). The Committee have proposed that the additional material attached as an Annex to this Notice be included for clarity.

This additional material includes a declaration of the remuneration of higher paid staff as was suggested by Dr A. L. R. Findlay in his remarks. There are no important matters, included in either the HEFCE SORP or the Charities SORP, which are omitted from the RCCA. The Council are of the opinion that the proposed RCCA will provide a true and fair view of the financial affairs of the Colleges.

Dr Findlay expressed concern that two Colleges have indicated that they intend to continue for the time being to use the current statutory accounts and suggested that the University should direct the Colleges to comply with the RCCA. The current Statute G, III, 2(i) states that the form of the College accounts submitted should be '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'. The Council, on the advice of the Finance Committee, had taken the decision at an early stage that 'direction' to submit a revised statement of accounts would not be as effective as negotiation. Under the proposed new Statute, any change to the form of the RCCA will still be determined by the University on the recommendation of the Finance Committee, made after considering the advice of the Inter-Collegiate Committee on College Accounts. Negotiations can still continue with these two Colleges within that framework.

In response to Dr O. Rackham's comments, the Council acknowledge that any change involves a degree of dislocation, but they note that many Colleges are planning to prepare their accounts for 2002/03 in both the existing statutory form and in RCCA form. Under the planned amendment of Statute G, III, RCCA will become the statutory form of accounts for 2003/04. It is common practice that where a change of format is introduced the bridge from old to new format is made within a single year, and the arrangements agreed by the Colleges are regarded by the Council as being entirely appropriate. With regard to Dr Rackham's second point about the difficulty of establishing an agreed value for King's College Chapel, the Council understands that King's College will not necessarily be required to include the Chapel in its balance sheet, since RCCA has due regard to the provisions of FRS 15 relating to 'inalienable and historic buildings'. Should King's College determine to include it, however, it is clearly desirable that the valuation should be established through accepted valuation methods approved by accounting standards, as authorized by RCCA.

The Council have agreed that Recommendation II of their Report (Reporter, p. 1019) be amended as set out in the Annex to this Notice so that it includes provision for the expanded Schedule of the RCCA to be amended by Grace. They are submitting a Grace to the Regent House for the approval of the recommendations in the Report, amended as set out below (Grace 1, p. 1309).

21 July 2003ALEC N. BROERS, Vice-ChancellorB. J. BRINDEDJAMES MATHESON
 S. H. ADELMAN PETER GODDARD MARTIN REES
 SARAH AIREY D. A. GOOD G. A. REID
 R. J. ANDERSON DAVID S. INGRAM M. SCHOFIELD
 RICHARD BARNES IAN LESLIE LIBA TAUB
 JOHN BOYD  

Annex - available as a separate file [88Kb PDF]


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Cambridge University Reporter, 6 August 2003
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