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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)

SCHEDULE E (FORMS OF AUDITORS' CERTIFICATES)

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

SCHEDULE

RECOMMENDED CAMBRIDGE COLLEGE ACCOUNTS(RCCA)

A. [Consolidated] Income and Expenditure Account

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

C. [Consolidated] Balance Sheet

* as defined by University Statute G, II

D. [Consolidated] Cash Flow Statement

Notes to the Accounts

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