The Recommended Cambridge College Accounts were introduced in 2003-04. On the recommendation of the Finance Committee, who have been advised by the Inter-Collegiate Committee on College Accounts, the Council have agreed to propose revisions to the wording in certain sections and tables of the Accounts for clarity, to reflect recent legislative changes, and to provide more detail in the section on pensions.
The Council are therefore submitting a Grace (Grace 2, p. 707) to the Regent House for the approval of the amendment to certain sections of the Schedule to the regulations for College Accounts (Statutes and Ordinances, p. 920) as set out below.
By removing the first sentence in italics.
By replacing the first sentence of this section so as to read:
The College participates in the Universities Superannuation Scheme (USS), a defined benefit scheme which is externally funded and contracted out of the State Second Pension (S2P).
By placing the last line in brackets and renumbering the note reference 13 as 14.
By amending the entry for 'Retained surplus/deficit for the year' so as to read:
Retained surplus/deficit for the year | - | - | x | x | x | x |
by renumbering the note reference 13 against 'Benefactions and donations' as 14; by adding a note reference 14 to 'Balance carried forward'; and by inserting the following new text above the entry for 'Total recognized gains/losses for the year':
Year to 30 June | Previous year to 30 June | ||||||
Restricted funds | Unrestricted funds | ||||||
Note | Collegiate purposes | Non-collegiate purposes | Designated funds | Undesignated funds | Total | Total | |
£ | £ | £ | £ | £ | £ | ||
Deferred capital funds released in year | (x) | (x) | (x) | (x) | (x) | (x) | |
Transfers | x | x | x | x | x | x | |
Actual return less expected return on pension scheme assets | 19 | x | x | x | x | x | x |
Changes in assumptions underlying the present value of the scheme liabilities | 19 | x | x | x | x | x | x |
Experience gains and losses arising on scheme liabilities | 19 | x | x | x | x | x | x |
By adding a note reference 9 against 'Debtors' and renumbering the subsequent note references 9-12 as 10-13 and by inserting at the end of this table the following two lines:
Note | As at 30 June | As at 30 June previous year | |
£ | £ | ||
Net assets excluding pension liability/asset | x | x | |
Pension liability/asset | x | x |
By inserting the following in the heading: 'including pension liability/asset' and by renumbering the note reference 13 in the entry for 'Capital and reserves' as 14.
By renumbering note references 9-13 in this section as 10-14.
(1) ACADEMIC FEES AND CHARGES
By adding a new sub-total entry under 'Graduate fee income' and by inserting the following note:
N.B. The figures shown in this Note should agree to those in the College's Education Memorandum.
By inserting the following note:
N.B. The figures shown in this Note should agree to those in the College's Education Memorandum.
By renumbering the note references 21a and 21b as 22a and 22b.
By renumbering the note reference 17 in the second column heading as 18 and by inserting the following note:
Other expenditure includes fundraising costs £x. This expenditure [includes] [does not include] the costs of alumni relations.
By renumbering the note reference 17 in the second column heading as 18 and by inserting the following note:
Other expenditure includes fundraising costs £x. This expenditure [includes] [does not include] the costs of alumni relations.
By deleting in line 5 of this entry the words 'Cost/valuation'.
By replacing this entry so as to read:
Year to 30 June | Previous Year | ||||
Freehold land and buildings | Furniture, fittings, and equipment | Rare books, works of art etc. | Total | Total | |
£ | £ | £ | £ | £ | |
ACCUMULATED DEPRECIATION | |||||
As at 1 July previous year | x | x | x | x | x |
Charge for the year | x | x | x | x | x |
Eliminated on disposal | x | x | x | x | x |
Written back on revaluation | x | x | x | x | x |
As at 30 June current year | x | x | x | x | x |
Net book value as at 30 June current year | £x | £x | £x | £x | £x |
(9) By inserting the following as new note 9 and renumbering notes 10-23 accordingly.
Year to 30 June | Previous year | |
£ | £ | |
Members of the College | x | x |
Others | x | x |
£x | £x |
By replacing the entry under this heading so as to read:
Year to 30 June | Previous year | |
Example | £ | £ |
Members of the College | x | x |
Others | x | x |
£x | £x |
By replacing the entry under this heading with the following:
Year to 30 June | Previous year | |
£ | £ | |
Capital commitments at 30 June are as follows: | ||
Authorized and contracted | x | x |
Authorized but not yet contracted for | x | x |
Commitments under finance leases entered into but not yet provided for in the financial statements | £x | £x |
By removing the brackets from the entry.
Year to 30 June year | Previous year | ||||
College fellows | Other academic | Non-academic | Total | Total | |
Average staff nos | |||||
Academic ([numbers in Governing Body] [numbers of stipendiary staff]) | x | x | x | x | x |
Non-academic (full-time equiv.) | x | x | x | x | x |
x | x | x | x | x |
[The Governing Body comprises xx Fellows, of which the x declared above are stipendiary.] [Of the x Fellows declared above, y are stipendiary.]
By amending the first three paragraphs of this section so as to read:
The College participates in the Universities Superannuation Scheme, a defined benefit scheme which is externally funded and contracted out of the State Second Pension (S2P). The assets of the scheme are held in a separate trustee-administered fund.
It is not possible to identify each institution's share of the underlying assets and liabilities of the scheme and hence contributions to the scheme are accounted for as if it were a defined contribution scheme, the cost recognized within the surplus/deficit for the year in the income and expenditure account being equal to the contributions payable to the scheme for the year.
The latest actuarial valuation of the scheme was at [date]. The assumptions which have the most significant effect on the result of the valuation are those relating to the rate of return on investments (i.e. the valuation rate of interest) and the rates of increase in salary and pensions. In relation to the past service liabilities, the financial assumptions were derived from market yields prevailing at the valuation date. It was assumed that the valuation rate of interest would be x% per annum, salary increases would be x% per annum, and pensions would increase by x% per annum. In relation to the future service liabilities, it was assumed that the valuation rate of interest would be x% per annum, including an additional investment return assumption of x% per annum, salary increases would be x% per annum, and pensions would increase by x% per annum. The valuation was carried out using the projected unit method.
By amending the text for this section so as to read:
N.B. Colleges will need to appoint an actuary to prepare the FRS 17 calculations required for this note.
The College also participates in the [Cambridge Colleges Federated Pension Scheme. The scheme is a defined benefit final salary pension scheme that was originally set up, under an interim Trust Deed, on 19 July 1977 as a defined benefit scheme. It has been approved by HM Revenue & Customs (previously the Inland Revenue Savings, Pensions, Share Schemes) under Chapter I of Part XIV of the Income and Corporation Taxes Act 1988. The College's employees covered by the Scheme are contracted out of the State Second Pension (S2P)] [other scheme].
The date of the most recent full actuarial valuation, on which the amounts in the financial statements are based, was as at [date]. These FRS 17 valuation results use the same data updated by an Actuary who is not an employee or officer of the College and/or its subsidiaries.
The total pension cost for the College was £xx,xxx (previous year: £xx,xxx). The contribution rate payable by the College was x.xx% of pensionable salaries.
The major assumptions used by the Actuary were:
Year to 30 June | Previous year(s) | |
Rate of increase in salaries | x.xx% | x.xx% |
Rate of increase in pensions in deferment | x.xx% | x.xx% |
- Guaranteed minimum pension (GMP) | x.xx% | x.xx% |
- Excess pension over GMP and pension accrued after 5 April 1997 | x.xx% | x.xx% |
Rate of increase in pensions in payment | x.xx% | x.xx% |
- GMP accrued up to 5 April 1988 | x.xx% | x.xx% |
- GMP accrued between 6 April 1988 and 5 April 1997 | x.xx% | x.xx% |
- Excess pension over GMP and pension accrued after 5 April 1997 | x.xx% | x.xx% |
Discount rate | x.xx% | x.xx% |
Inflation assumption | x.xx% | x.xx% |
The assets in the scheme and the expected rate of return were:
Year to 30 June | Previous year(s) | |||
Long term rate of return expected | Value £ | Long term rate of return | Value £ | |
Equities | x.xx% | xxx | x.xx% | xxx |
Bonds (including cash) | x.xx% | xxx | x.xx% | xxx |
Property | x.xx% | xxx | x.xx% | xxx |
Total market value of assets | x,xxx | x,xxx | ||
Present value of scheme liabilities | (x,xxx) | (x,xxx) | ||
Net pension asset/(liability) | xxx | xxx |
The following amounts have been included within the financial statements:
Analysis of amounts charged to operating profit | ||
Year to 30 June | Previous year(s) | |
£000 | £000 | |
Current service cost | xxx | xxx |
Life assurance premium | xx | xx |
Total operating charge | xxx | xxx |
Analysis of amount credited to other finance income | ||
Expected return on pension scheme assets | xx | xx |
Interest on pension scheme liabilities | (xx) | (xx) |
Net return | xx | xx |
Analysis of the amount recognized in Statement of Total Recognized Gains and Losses (STRGL) | ||
Actual return less expected return on pension scheme assets | xxx | xxx |
Experience gains and losses arising on scheme liabilities | xxx | xxx |
Change in assumptions underlying the present value of the scheme liabilities | xxx | xxx |
Actuarial gain/(loss) recognized in STRGL | xxx | xxx |
Movement in surplus during year | ||
Surplus/(deficit) in scheme at beginning of year | xxx | xxx |
Movement in year: | ||
Current service costs including life assurance | (xxx) | (xxx) |
Past service costs | (xx) | (xx) |
Contributions | xxx | xxx |
Other finance income | xx | xx |
Actuarial gain/(loss) | (xx) | (xx) |
Surplus/(deficit) in scheme at end of year | xxx | xxx |
The main reason for the change in the financial position of the scheme is ... | ||
History of experience gains and losses | ||
Year to 30 June | Previous year(s) | |
Amount (£000) | xx | xx |
Percentage of scheme assets | xx% | xx% |
Experience gains and losses on scheme liabilities: | ||
Amount (£000) | (xx) | (xx) |
Percentage of the present value of the scheme liabilities | (xx)% | (xx)% |
Amount (£000) | xx | xx |
Percentage of the present value of the scheme liabilities | xx% | xx% |
By amending this entry so as to read:
Year to 30 June | Year to 30 June | Previous year | |
£ | £ | £ | |
Balance at beginning of year | x | ||
Transfer from External Revenue (Terrorism insurance) | x | ||
Other transfer (specified) | x | ||
Less: | |||
Expenditure (specified) | x | x | |
Balance at end of year | x | x | |
(22f) (previously 21f) PENSION FUND | |||
By amending this entry so as to read: | |||
Year to 30 June | Year to 30 June | Previous year | |
£ | £ | £ | |
Balance at beginning of year | x | ||
Income (specified) | x | ||
Less: | |||
Expenditure (specified) | x | x | |
Balance at end of year | x | x |