FELLOWSHIP OF A COLLEGE

Amended by Grace 1 of 27 November 2013

In any Statute or Ordinance unless otherwise specified, the term ‘Fellowship of a College’ shall mean any Fellowship of a College other than an Honorary Fellowship, and the term ‘Fellow of a College’ shall mean the holder of such a Fellowship.

COLLEGE ACCOUNTS

1. 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 G III 6 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.

2. The form of the Recommended Cambridge College Accounts shall be determined from time to time by the University on the recommendation of the Finance Committee, made after considering the advice of the Inter-Collegiate Committee on College Accounts.

3. The index referred to in the Schedule to Statute G II in relation to College contributions under Statute G II 16 shall be the Higher Education Pay and Prices Index (all).

SCHEDULE

RECOMMENDED CAMBRIDGE COLLEGE ACCOUNTS (RCCA)

This document is intended to be read in conjunction with the HE/FE SORP available from the Universities UK website: http://www.universitiesuk.ac.uk/highereducation/Documents/2007/SORP.pdf.

 

Reference and Administrative Details

 

Name of College

 

Address

 

 

 

Charity Registration number

 

 

Charity Trustees1 (Members of the Governing Body or Council)

 

 

 

 

 

Senior officers

Head of House:

Senior Tutor:

Senior Bursar:

Other:

 

Principal advisers

Auditors:

Bankers:

Property Managers:

Investment Managers:

Legal Advisers:

Operating and Financial Review

The format and content of the Operating and Financial Review (which may also be called the Trustees’ Report or Report of the Governing Body) is not prescribed by the SORP. However, this review must provide an overview of the College’s finances and operations and follow best practice. Specifically, the OFR should provide a comprehensive and balanced analysis, consistent with the size and complexity of the College, covering:

1. (a)the development, performance, and operation of the business and operation of the College during the financial year;
2. (b)the position of the College at the end of the year;
3. (c)the main trends and factors underlying the development, performance and position of the College and its academic performance during the financial year; and
4. (d)the main trends and factors which are likely to affect the College’s future development, performance and position.

The following headings may provide a useful guide:

 

Introduction

 

 

Scope of the financial statements

 

 

Aims and objectives of the College

 

 

Public benefit

 

 

Funding

 

 

Achievements and performance

 

 

Financial review

 

 Maintenance of buildings

 

 Capital expenditure

 

 Endowment and investment performance

 

 Staff costs and pensions

 

 Reserves policy

 

 

Principal risks and uncertainties

 

 

Plans for the future

Corporate Governance

Paragraph 24(b) of the SORP requires the inclusion of a statement of corporate governance. The following is shown for guidance only.

Statement of Internal Control

Paragraph 24(b) of the SORP also requires the inclusion of a statement of internal control.

The following statement is by way of example only.

Alternatively, the statement may be included in the Operating and Financial Review (OFR) or the Statement of Corporate Governance.

Responsibilities of the Trustees [Governing Body]

The Trustees are [Governing Body/Council is] responsible for preparing the Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The College’s Statutes and the Statutes and Ordinances of the University of Cambridge require the Governing Body to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the College and of the surplus or deficit of the College for that period. In preparing these financial statements, the Trustees are [Governing Body/Council is] required to:

1. •select suitable accounting policies and then apply them consistently;
2. •make judgements and estimates that are reasonable and prudent;
3. •state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
4. •prepare the financial statements on the going concern basis unless it is inappropriate to presume that the College will continue in operation2.

The Trustees are [Governing Body/Council is] responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the College and enable them to ensure that the financial statements comply with the Statutes of the University of Cambridge. They are also responsible for safeguarding the assets of the College and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

[The Trustees are [Governing Body/Council is] responsible for the maintenance and integrity of the corporate and financial information included on the College’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions3.]

Alternatively, this statement may be included in the Operating and Financial Review (OFR) or the Statement of Corporate Governance.

Independent Auditors’ Report to the Trustees [Governing Body/Council] of Cambridge College

We have audited the financial statements of [name of College] for the year ended ………… which comprise the [consolidated*] income and expenditure account, the [consolidated*] statement of total recognised gains and losses, the [consolidated and College*] balance sheet[s*], the [consolidated*] cash flow statement and related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the College’s Trustees [Governing Body/Council], as a body, in accordance with the College’s Statutes, and the Statutes of the University of Cambridge. Our audit work has been undertaken so that we might state to the College’s Trustees [Governing Body/Council] those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the College and the College’s Trustees [Governing Body/Council] as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of the trustees [Governing Body/Council] and auditors

As explained more fully in the Trustees’ [Governing Body’s/Council’s] Responsibilities Statement [set out [on page …]], the Trustees are [Governing Body/Council is] responsible for the preparation of financial statements which give a true and fair view.

We have been appointed as auditors under section 43 of the Charities Act 1993 and report in accordance with regulations made under section 44 of that Act. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s [APB’s] Ethical Standards for Auditors.

Scope of the audit of financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the College’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees [Governing Body/Council]; and the overall presentation of the financial statements. In addition, we read all the financial information in the [describe the annual report] to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion:

1. •the financial statements give a true and fair view of the state of the [group’s and the*] College’s affairs as at ……………. and of [its*] [the group’s*] income and expenditure for the year then ended;
2. •the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
3. •the financial statements have been prepared in accordance with the requirements of the Charities Act 1993, the College’s Statutes, and the Statutes of the University of Cambridge;
4. •the contribution due from the College to the University has been correctly computed as advised in the provisional assessment by the University of Cambridge and in accordance with the provisions of Statute G II, of the University of Cambridge.

* Delete if not applicable.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 1993 requires us to report to you if, in our opinion:

1. •the information given in the Trustees’ [Governing Body’s/Council’s] Annual Report is inconsistent in any material respect with the financial statements; or
2. •sufficient accounting records have not been kept; or
3. •the financial statements are not in agreement with the accounting records and returns; or
4. •we have not received all the information and explanations we require for our audit.
5.  
6.  
7.  

Name and address of firm

 

 

Chartered Accountants and Statutory Auditors

 

 

Date:

 

[Name of firm] is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Statement of Principal Accounting Policies

Basis of preparation

The financial statements have been prepared in accordance with the provisions of the Statutes of the College and of the University of Cambridge and applicable United Kingdom accounting standards. In addition, the financial statements comply with the Statement of Recommended Practice: Accounting for Further and Higher Education (the SORP).

The income and expenditure account includes activity analysis in order to demonstrate that the College is satisfying its obligations to the University of Cambridge with regard to the use of public funds. The analysis required by the SORP is set out in note 7.

Basis of accounting

The financial statements have been prepared under the historical cost convention, modified in respect of the treatment of investments [and certain operational properties] which are included at valuation.

Basis of consolidation

The consolidated financial statements include the College and its subsidiary undertakings. Details of the subsidiary undertakings included are set out in note xx. Intra-group balances are eliminated on consolidation.

The consolidated financial statements do not include the activities of student societies [as these are separate bodies in which the College has no financial interest and over whose policy decisions it has no control].

Recognition of income

Academic fees

Academic fees are recognised in the period to which they relate and include all fees chargeable to students or their sponsors. [The costs of any fees waived or written off by the College are included as expenditure.]

Restricted grant income

Grants received for restricted purposes are recognised as income to the extent that relevant expenditure has been incurred.

Income from research grants

[Income from research grants, contracts and other services rendered is included to the extent of the completion of the contract or service concerned.]

Donations and benefactions

Charitable donations are recognised on receipt or where there is certainty of future receipt and the value can be measured reliably. The accounting treatment of a donation depends on the nature and extent of restrictions specified by the donor. Donations with no substantial restrictions are recognised as income in the income and expenditure account. Donations which are to be retained for the future benefit of the College, and other donations with substantially restricted purposes, other than for the acquisition or construction of tangible fixed assets, are recognised in the statement of total recognised gains and losses as new endowments.

Capital grants and donations

Grants and donations are received for the purposes of funding the acquisition and construction of tangible fixed assets. In the case of depreciable assets these are credited to deferred capital grants when the related capital expenditure is incurred and released to income over the estimated useful life of the respective assets in line with the depreciation policy. Grants and donations of, or for the acquisition of, freehold land or heritage assets, which are non-depreciable assets, are credited to the income and expenditure account in the year of acquisition.

Other income

Income is received from a range of activities including residences, catering conferences, and other services rendered.

Endowment and investment income

All investment income is credited to the Income and Expenditure Account in the period in which it is earned. Income from restricted endowments not expended in accordance with the restrictions of the endowment is transferred from the Income and Expenditure Account to restricted endowments.

[Total return

Where the Total Return basis of accounting for investment returns has been adopted, Colleges should include an explanation of the basis of the calculation.]

Foreign currency translation

Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at year end rates or, where there are forward foreign exchange contracts, at contract rates. The resulting exchange differences are dealt with in the determination of the income and expenditure for the financial year.

Statement of Principal Accounting Policies (continued)

Tangible fixed assets

Land and buildings

Land and buildings are stated at [cost] [or] [valuation]. Where buildings have been revalued, they are valued on the basis of their depreciated replacement cost. [The valuation on [date] was carried out by [name of firm, Chartered Surveyors.] Freehold buildings are depreciated on a straight line basis over their expected useful economic life of x years. Freehold land is not depreciated. [Leasehold land and buildings are amortised over 50 years, or, if shorter, the period of the lease.]

Where land and buildings are acquired with the aid of specific bequests or donations they are capitalised and depreciated as above. [The related benefactions are credited to a deferred capital account and are released to the Income and Expenditure Account over the expected useful economic life of the related asset on a basis consistent with the depreciation policy.] [The related benefactions are credited to permanent capital.]

Finance costs which are directly attributable to the construction of buildings are [not] capitalised as part of the cost of those assets.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable.

Buildings under construction are valued at cost, based on the value of architects’ certificates and other direct costs incurred. They are not depreciated until they are brought into use.

[Land held specifically for development, investment, and subsequent sale is included in current assets at the lower of cost and net realisable value.]

[The cost of additions to operational property shown in the balance sheet includes the cost of land.]

Maintenance of premises

[The College has a [five year] [other period] rolling maintenance plan which is reviewed on an annual basis.] The cost of routine maintenance is [charged to the Income and Expenditure Account as it is incurred] [capitalised and depreciated over the expected useful economic life of the asset concerned]. [The College also sets aside sums on a regular basis to meet major maintenance costs which occur on an irregular basis. These are disclosed as designated funds.]

Equipment

Furniture, fittings, and equipment [is written off in the year of acquisition] [costing less than [£x] per individual item or group of related items is written off in the year of acquisition. All other assets are capitalised and depreciated over their expected useful life as follows:

[Where equipment is acquired with the aid of specific bequests or donations it is capitalised and depreciated as above. [The related benefactions are credited to a deferred capital account and are released to the Income and Expenditure Account over the expected useful economic life of the related asset on a basis consistent with the depreciation policy.] [The related benefactions are credited to permanent capital.]]

Leased assets

Fixed assets held under finance leases and the related lease obligations are recorded in the Balance Sheet at the fair value of the leased assets at the inception of the lease. The excesses of lease payments over recorded lease obligations are treated as finance charges which are amortised over each lease term to give a constant rate of charge on the remaining balance of the obligations. Rental costs under operating leases are charged to expenditure in equal amounts over the periods of the leases.

Heritage assets

The College holds and conserves a number of collections, exhibits, artefacts and other assets of historical, artistic or scientific importance. In accordance with FRS 15 and FRS 30 (Heritage assets) heritage assets acquired before 1 July 1999 have not been capitalised since reliable estimates of cost or value are not available on a cost-benefit basis. Acquisitions since 1 July 1999 have been capitalised at cost or, in the case of donated assets, at expert valuation on receipt. Heritage assets are not depreciated since their long economic life and high residual value mean that any depreciation would not be material.

Investments

Fixed asset investment and endowment assets are included in the balance sheet at market value, except for investments in subsidiary undertakings which are stated in the College’s balance sheet at cost and eliminated on consolidation. Investments that are not listed on a recognised stock exchange are carried at historical cost less any provision for impairment in their value.

Stocks

Stocks are stated at the lower of cost and net realisable value after making provision for slow moving and obsolete items.

Provisions

Provisions are recognised when the College has a present legal or constructive obligation as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

Statement of Principal Accounting Policies (continued)

Taxation

The College is a registered charity (number 1234567) and also a charity within the meaning of Section 506 (1) of the Taxes Act 1988. Accordingly, the College is exempt from taxation in respect of income or capital gains received within the categories covered by Section 505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes.

The College receives no similar exemption in respect of Value Added Tax.

Contribution under Statute G II

The College is liable to be assessed for Contribution under the provisions of Statute G II of the University of Cambridge. Contribution is used to fund grants to Colleges from the Colleges Fund. The College may from time to time be eligible for such grants. The liability for the year is as advised to the College by the University based on an assessable amount derived from the value of the College’s assets as at the end of the previous financial year.

Pension costs

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). The assets of the scheme are held in a separate trustee administered fund. Because of the mutual nature of the scheme, the College is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as required by FRS 17 ‘Retirement Benefits’, accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the Income and Expenditure Account represents the contributions payable to the scheme in respect of the accounting period.

[A similar note of accounting policy is required in respect of any other scheme in which the College participates, e.g. CCFPS. ]

Consolidated Income and Expenditure Account

For the year ended 30 June [20..]

All items dealt with in arriving at the surplus/(deficit) for [current year] and [previous year] relate to continuing operations.

 

 

 

Note of Historical Cost Surpluses and Deficits

For the year ended 30 June [20..]

This note will only apply to those Colleges that have adopted a policy of revaluation with regard to tangible fixed assets.

 

 

 

 

The notes on pages xx to xx form part of these accounts.

Consolidated Statement of Total Recognised Gains and Losses

For the year ended 30 June [20..]

 

 

 

 

 

 

 

 

The notes on pages xx to xx form part of these accounts.

Consolidated Balance Sheet as at 30 June [20..]

[Where the Group and College figures are materially different, separate balance sheets for each must be produced.]

The financial statements were approved by the Trustees [Governing Body/Council] on [insert date] and signed on its behalf by:

The notes on pages xx to xx form part of these accounts.

Consolidated Cash Flow Statement

For the year ended 30 June [20..]

The notes on pages xx to xx form part of these accounts.

Notes to the Accounts

For the year ended 30 June [20..]

Notes to the Accounts (continued)

For the year ended 30 June [20..]

Expenditure includes fundraising costs of £xx,xxx. This expenditure [includes] [does not include] the costs of alumni relations.

Notes to the Accounts (continued)

For the year ended 30 June [20..]

Expenditure includes fundraising costs of £xx,xxx. This expenditure [includes] [does not include] the costs of alumni relations.

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

The number of officers and employees of the College, including Head of House, who received emoluments in the following ranges was:

(Continuing in bands of £10,000 until the highest combined stipend and other taxable benefits is reached)*

* (or, if relevant)

No officer or employee of the College, including the Head of House, received emoluments of over £100,000.

Notes to the Accounts (continued)

For the year ended 30 June [20..]

The insured value of freehold land and buildings as at 30 June [current year] was £xx,xxx,xxx ([previous year]: £xx,xxx,xxx).

The net book value of tangible fixed assets includes an amount of £xxx,xxx ([previous year]: £xxx,xxx) in respect of assets held under finance leases. The depreciation charge on these assets for the year was £xx,xxx ([previous year]: £xx,xxx).

The cost to the group of freehold buildings and assets in construction consists of the costs incurred by the College less the surplus recorded in the accounts of XYZ Limited, a subsidiary undertaking, and eliminated on consolidation.

Notes to the Accounts (continued)

For the year ended 30 June [20..]

Heritage assets

The College holds and conserves certain collections, artefacts and other assets of historical, artistic or scientific importance.

As stated in the statement of principal accounting policies, heritage assets acquired since [insert date] have been capitalised. However, the majority of assets held in the College’s collections were acquired prior to this date. As reliable estimates of cost or valuation are not available for these on a cost-benefit basis, they have not been capitalised. As a result the total included in the balance sheet is partial.

Amounts for the current and previous four years were as follows:

Notes to the Accounts (continued)

For the year ended 30 June [20..]

Notes 9 and 10 above may need to be adapted to include Endowment Assets (e.g. where investments are managed as a single pool) in which case the figures in note 11 should be suitably cross-referenced. In either case, Endowment Assets must always be shown separately on the face of the balance sheet.

Notes to the Accounts (continued)

For the year ended 30 June [20..]

Notes to the Accounts (continued)

For the year ended 30 June [20..]

Notes to the Accounts (continued)

For the year ended 30 June [20..]

Notes to the Accounts (continued)

For the year ended 30 June [20..]

Notes to the Accounts (continued)

For the year ended 30 June [20..]

Notes to the Accounts (continued)

For the year ended 30 June [20..]

28 Pension schemes

The College participates in three defined benefit schemes, the Universities Superannuation Scheme (USS), the Cambridge Colleges Federated Pension Scheme (CCFPS) and the Church of England Funded Pensions Scheme, as follows:

Universities Superannuation Scheme

The College participates in the Universities Superannuation Scheme (USS), a defined benefit scheme which is contracted out of the State Second Pension (S2P). The assets of the scheme are held in a separate fund administered by the trustee, Universities Superannuation Scheme Limited.

Insert specimen wording provided by USS.

Cambridge Colleges Federated Pension Scheme

Insert the disclosures required by FRS 17, provided by the scheme actuary.

Other pension schemes

Insert the disclosures required by FRS 17, provided by the pension provider or scheme actuary.

The total pension cost, after personal health insurance contributions, for the year to 30 June [20..] (see note x) was as follows:

Notes to the Accounts (continued)

For the year ended 30 June [20..]

29 Principal subsidiary and associated undertakings and other significant investments

Give details where relevant.

30 Contingent Liabilities

Give details where relevant.

31 Related Party Transactions

Owing to the nature of the College’s operations and the composition of the Governing Body it is inevitable that transactions will take place with organisations in which a member of the Governing Body may have an interest. All transactions involving organisations in which a member of the Governing Body may have an interest are conducted at arm’s length and in accordance with the College’s normal procedures.

[Transactions totalling £xx,xxx relating to ………… took place with ……… Limited, a company in which the College has a majority interest. There were no amounts outstanding at the balance sheet date.]

COLLEGES: MATRICULATION AND PRESENTATION OF CANDIDATES FOR CERTAIN DEGREES

Hughes Hall

1. Hughes Hall shall be empowered to present for matriculation, to enter as a candidate for any examination leading to the degree of B.A., Mus.B., B.Ed., and B.Th., and to present as a candidate for the degree, a student who (a) has attained the age of twenty-one years or (b) is entitled to be, or has been, approved as an Affiliated Student.

2. Except as provided in Regulation 1 and except in so far as the Council upon application from Hughes Hall shall have waived, in respect of a particular student, one or more of the following restrictions, Hughes Hall shall not:

1. (a)present for matriculation any student who does not hold the status of Bachelor of Arts or of Master of Arts in the University;
2. (b)enter a student as a candidate for any examination leading to the B.A. Degree or the B.Ed. Degree (otherwise than for a Tripos Examination as a candidate not for honours), or for the Mus.B. Examination, or for an examination leading to the B.Th. Degree;
3. (c)present a candidate for the degree of B.A., Mus.B., B.Ed., or B.Th.

Lucy Cavendish College

1. Lucy Cavendish College shall be empowered to present for matriculation, to enter as a candidate for any examination leading to the degree of B.A., Mus.B., B.Ed., or B.Th., and to present as a candidate for the degree, a student who (a) has attained the age of twenty-one years or (b) is entitled to be, or has been, approved as an Affiliated Student.

2. Except as provided in Regulation 1 and except in so far as the Council upon application from the College shall have waived, in respect of a particular student, one or more of the following restrictions, Lucy Cavendish College shall not:

1. (a)present for matriculation any student who does not hold the status of Bachelor of Arts or of Master of Arts in the University;
2. (b)enter a student as a candidate for any examination leading to the B.A. Degree or the B.Ed. Degree (otherwise than for a Tripos Examination as a candidate not for honours), or for the Mus.B. Examination, or for an examination leading to the B.Th. Degree;
3. (c)present a candidate for the degree of B.A., Mus.B., B.Ed., or B.Th.

St Edmund's College

1. St Edmund's College shall be empowered to present for matriculation, to enter as a candidate for any examination leading to the degree of B.A., Mus.B., or B.Th., and to present as a candidate for the degree, a student who (a) has attained the age of twenty-one years or (b) is entitled to be, or has been, approved as an Affiliated Student.

2. Except as provided in Regulation 1 and except in so far as the Council upon application from the College shall have waived, in respect of a particular student, one or more of the following restrictions, St Edmund's College shall not:

1. (a)present for matriculation any student who does not hold the status of Bachelor of Arts or of Master of Arts in the University;
2. (b)enter a student as a candidate for any examination leading to the B.A. Degree (otherwise than for a Tripos Examination as a candidate not for honours), or for the Mus.B. Examination, or for an examination leading to the B.Th. Degree;
3. (c)present a candidate for the degree of B.A., Mus.B., or B.Th.

Wolfson College

1. Wolfson College shall be empowered to present for matriculation, and to present as a candidate for the degree of B.A., or Mus.B., or B.Ed., a person who (a) has attained the age of twenty-one years or (b) is entitled to be, or has been, approved as an Affiliated Student.

2. Except as provided in Regulation 1 and except in so far as the Council upon application from the College shall have waived, in respect of a particular person, one or more of the following restrictions, Wolfson College shall not:

1. (a)present for matriculation any person who does not hold the status of Bachelor of Arts or of Master of Arts in the University;
2. (b)present a candidate for the degree of B.A., or Mus.B., or B.Ed.