Cambridge University Reporter


Recommended Cambridge College Accounts (RCCA): Amendment to Schedule

5 June 2006

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.

SCHEDULE

C. Auditors' Report to the Governing Body of Cambridge College

By removing the first sentence in italics.

D. Statement of Principal Accounting Policies

Pension schemes

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).

E. [Consolidated] Income and Expenditure Account

By placing the last line in brackets and renumbering the note reference 13 as 14.

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

By amending the entry for 'Retained surplus/deficit for the year' so as to read:

Retained surplus/deficit for the year--xxxx

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 JunePrevious year to 30 June
 Restricted fundsUnrestricted funds 
 NoteCollegiate purposesNon-collegiate purposesDesignated fundsUndesignated fundsTotalTotal
  ££££££
Deferred capital funds released in year (x)(x)(x)(x)(x)(x)
Transfers xxxxxx
Actual return less expected return on pension scheme assets19xxxxxx
Changes in assumptions underlying the present value of the scheme liabilities19xxxxxx
Experience gains and losses arising on scheme liabilities19xxxxxx

G. [Consolidated] Balance Sheet

CURRENT ASSETS

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:

 NoteAs at 30 JuneAs at 30 June
previous year
  ££
Net assets excluding pension liability/asset xx
Pension liability/asset xx

NET ASSETS

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.

H. [Consolidated] Cash Flow Statement

By renumbering note references 9-13 in this section as 10-14.

I. Notes to the Accounts

(1) ACADEMIC FEES AND CHARGES

COLLEGE FEES

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.

(4) EDUCATION EXPENDITURE

By inserting the following note:

N.B. The figures shown in this Note should agree to those in the College's Education Memorandum.

(6) CONTRIBUTION UNDER STATUTE G, II

By renumbering the note references 21a and 21b as 22a and 22b.

(7a) ANALYSIS OF CURRENT YEAR'S EXPENDITURE BY ACTIVITY

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.

(7b) ANALYSIS OF PREVIOUS YEAR'S EXPENDITURE BY ACTIVITY

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.

(8) FIXED ASSETS

TANGIBLE FIXED ASSETS

COST/VALUATION

By deleting in line 5 of this entry the words 'Cost/valuation'.

DEPRECIATION

By replacing this entry so as to read:

 Year to 30 JunePrevious Year
 Freehold land
and buildings
Furniture, fittings,
and equipment
Rare books,
works of art etc.
TotalTotal
 £££££

ACCUMULATED DEPRECIATION

As at 1 July previous yearxxxxx
Charge for the yearxxxxx
Eliminated on disposalxxxxx
Written back on revaluationxxxxx
As at 30 June current yearxxxxx
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.

DEBTORS

 Year to 30 JunePrevious year
 ££
Members of the Collegexx
Othersxx
 £x£x

(11) (previously 10) CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

By replacing the entry under this heading so as to read:

 Year to 30 JunePrevious year
Example ££
Members of the Collegexx
Othersxx
 £x£x

(17a) (previously 16a) CAPITAL COMMITMENTS

By replacing the entry under this heading with the following:

 Year to 30 JunePrevious year
 ££
Capital commitments at 30 June are as follows:
Authorized and contractedxx
Authorized but not yet contracted forxx
Commitments under finance leases entered into but not yet provided for in the financial statements£x£x

(17b) (previously 16b) FINANCIAL COMMITMENTS

By removing the brackets from the entry.

(18) (previously 17) STAFF

By replacing the last three entries in the table with the following:
 Year to 30 June yearPrevious
year
 College fellowsOther academicNon-academicTotalTotal
Average staff nos
Academic ([numbers in Governing Body] [numbers of stipendiary staff])xxxxx
Non-academic (full-time equiv.)xxxxx
 xxxxx

[The Governing Body comprises xx Fellows, of which the x declared above are stipendiary.] [Of the x Fellows declared above, y are stipendiary.]

(19) (previously 18) PENSION SCHEMES

Universities Superannuation Scheme

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.

[Cambridge Colleges Federated Pension Scheme] [Other scheme]

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 JunePrevious year(s)
Rate of increase in salariesx.xx%x.xx%
Rate of increase in pensions in defermentx.xx%x.xx%
- Guaranteed minimum pension (GMP)x.xx%x.xx%
- Excess pension over GMP and pension accrued after 5 April 1997x.xx%x.xx%
Rate of increase in pensions in paymentx.xx%x.xx%
- GMP accrued up to 5 April 1988x.xx%x.xx%
- GMP accrued between 6 April 1988 and 5 April 1997x.xx%x.xx%
- Excess pension over GMP and pension accrued after 5 April 1997x.xx%x.xx%
Discount ratex.xx%x.xx%
Inflation assumptionx.xx%x.xx%

The assets in the scheme and the expected rate of return were:

 Year to 30 JunePrevious year(s)
 Long term rate of return expectedValue
£
Long term rate of returnValue
£
Equitiesx.xx%xxxx.xx%xxx
Bonds (including cash)x.xx%xxxx.xx%xxx
Propertyx.xx%xxxx.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 JunePrevious year(s)
 £000£000
Current service costxxxxxx
Life assurance premiumxxxx
Total operating chargexxxxxx

Analysis of amount credited to other finance income

Expected return on pension scheme assetsxxxx
Interest on pension scheme liabilities(xx)(xx)
Net returnxxxx

Analysis of the amount recognized in Statement of Total Recognized Gains and Losses (STRGL)

Actual return less expected return on pension scheme assetsxxxxxx
Experience gains and losses arising on scheme liabilitiesxxxxxx
Change in assumptions underlying the present value of the scheme liabilitiesxxxxxx
Actuarial gain/(loss) recognized in STRGLxxxxxx

Movement in surplus during year

Surplus/(deficit) in scheme at beginning of yearxxxxxx
Movement in year:
Current service costs including life assurance(xxx)(xxx)
 
Past service costs(xx)(xx)
Contributionsxxxxxx
Other finance incomexxxx
Actuarial gain/(loss)(xx)(xx)
Surplus/(deficit) in scheme at end of yearxxxxxx
 
The main reason for the change in the financial position of the scheme is ...

History of experience gains and losses

 Year to 30 JunePrevious year(s)
Amount (£000)xxxx
Percentage of scheme assetsxx%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)xxxx
Percentage of the present value of the scheme liabilitiesxx%xx%

(22e) (previously 21e) INSURANCE FUND

By amending this entry so as to read:

 Year to 30 JuneYear to 30 JunePrevious year
 £££
Balance at beginning of year x 
Transfer from External Revenue (Terrorism insurance)x  
Other transfer (specified)x  
Less:
Expenditure (specified)xx 
Balance at end of year xx

(22f) (previously 21f) PENSION FUND

By amending this entry so as to read:

 Year to 30 JuneYear to 30 June Previous year
 £££
Balance at beginning of year  x
Income (specified)x  
Less:
Expenditure (specified)xx 
Balance at end of year xx