College

Cambridge Regional College





Members’ report and financial statements

For the year ended 31 July 2009

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Members’ report and financial statements



Contents



Operating and Financial Review 3

Statement of corporate governance and internal control 11

Statement of the responsibilities of the members of the Corporation 17

Independent auditors’ report to the Corporation of Cambridge Regional College 18

Independent auditors' report on regularity to the Corporation of Cambridge Regional College and

the Learning and Skills Council 20

Income and expenditure account 21

Statement of total recognised gains and losses 22

Statement of historical cost surpluses and deficits 22

Balance sheet 23

Cash flow statement 24

Reconciliation of net cash flow to movement in net funds/debt 24

Notes 25

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Operating and Financial Review



NATURE, OBJECTIVES AND STRATEGIES:



The members present their report and the audited financial statements for the year ended 31 July 2009.



Legal status



The Corporation was established under the Further and Higher Education Act 1992 for the purpose of conducting

Cambridge Regional College. The College is an exempt charity for the purposes of the Charities Act 1993 as

amended by the Charities Act 2006.



Vision



The College’s vision is to be acknowledged as one of the UK’s leading colleges providing high quality further

education and training that excels regionally and is nationally and internationally renowned.



Mission



CRC aims to be the first choice provider of learning and skills for employability in, and economic prosperity of, the

Cambridge region. We use “First for Training and Skills” to communicate this.



From our comprehensive range of provision we aim to provide a very wide range of opportunities for young people

and adults to follow programmes leading to qualifications and progression in most vocational and occupational

areas. We provide access and opportunity from entry to advanced level courses. We have a sound base for

development and our key role in learning and skills is well understood in the Cambridge Sub-Region.



We aim to become outstanding as a large general FE College by:

 Providing open and (where possible) flexible access to a wide range of programmes at the appropriate

level for students to succeed and progress

 “Adding value” to students’ skills and capabilities

 Promoting and delivering high progression rates to high level courses, employment and higher

education

 Delivering good or outstanding provision across all the College’s programmes.



Implementation of strategic plan



In 2009, the College prepared a strategic and development plan for the period 2009 to 2012. This strategic plan

links to the College’s accommodation strategy and financial forecasts. The Corporation monitors the performance

of the College against these plans. The plans are reviewed and updated each year, and in this review have been

significantly updated. The College’s strategic aims/themes within this plan are:



 Aim 1 – To be responsive to our learners, employers and partners

 Aim 2 – To achieve learner success and stakeholder satisfaction

 Theme 1 – To value our staff and optimise our resources

 Theme 2 – To manage and develop the College



This last theme introduces a clear focus on organisational development, with key areas being:

 Identifying and responding to opportunities for whole-organisation development

 Responding proactively to Government and sectoral policy

 Managing the College ethically and sustainably, and

 Becoming an outstanding College.









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Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Operating and Financial Review (continued)



Performance indicators



Although the LSC continues to measure FE performance in terms of contribution to national targets, individual

colleges are now required to submit three-year development plans which are reviewed each year. These development

plans focus on four headline targets:

 Learner number growth and achievement of LSC funding targets

 Learner success rates

 Teacher qualifications

 Employer engagement.



In 2008/09 the College maintained its learner numbers in the 16 –18 FTE area. There was a continuing movement

away from 19+ general provision as the LSC increasingly prioritises its funding to employer responsive.



The LSC is also moving towards a new system of performance measures for colleges, the “Framework for

Excellence” replacing the old “ABC” framework for all providers in 2008/09. The Framework has three dimensions:

 Responsiveness

 Effectiveness

 Finance.

Each dimension has two or three Key Performance Areas. These Areas are further broken down into Performance

Indicators supported by Performance Measures which are absolute measures of performance such as the outcome

from a learner survey or a qualification success rate. In deriving the overall performance rating, the Framework gives

equal weighting to each of the three dimensions.



The College is committed to observing the importance of the measures and indicators within the draft Framework

and is monitoring these through the completion of the annual Finance Record for the LSC. The current rating of

Satisfactory is considered an acceptable outcome, but the college plans to retain its Good rating during Financial

Year 2009/10.



FINANCIAL POSITION



Financial results



The Provider Financial Assurance (PFA) Audit, undertaken at the same time as the Ofsted Inspection in March 2008,

graded Financial Assurance as Outstanding, and key strengths were:

 The College’s Success Rates have continued to improve and are above national benchmarks

 The College has long established links with schools and the County Council, and this has enhanced

collaboration on and development of the curriculum

 The College is embarking on a major capital project, financed by reinvestment of sales proceeds, and with

minimal funding being required from the LSC

 The Governors demonstrated strong commitment to the College and have been appropriately involved in

reviewing and approving the College’s high-level plans. They work on a clear schedule based on an annual

cycle, providing effective oversight of college business

 The College produces comprehensive monthly management accounts, which include a report on

performance against the College’s performance indicators and enrolments and student data. These accounts

incorporate a traffic light warning system to assist the Governors to identify potential problem areas

 There is a robust control environment in the College, as evidenced over the previous 2 years by clean

opinions from internal audit, regularity audit and financial statements audit.

 The College has achieved the LSC funding targets over the previous 3 years, within the tolerances of plan-

led funding

 The College has displayed openness – the College website has an area dedicated to governance









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Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Operating and Financial Review (continued)

 The College has taken a pro-active approach to managing its non-pay cost with the appointment of a

procurement officer and the very recent governor approval of a Purchasing and Supply strategy

 Significantly improved financial performance, including return to surplus, net current assets and LSC

Financial Health Category A and FfE Financial Health score of Good.



The College is referring to its operating performance prior to the impact of FRS17, because this has not been factored

into performance in previous years, and is excluded during LSC calculations of Financial Health Category.



The primary effect of this can be seen in the table below and also in Note 23 (the FRS17 Retirement benefit charge),

and this has been excluded from the comparisons below.

2008/09 2007/08



(Deficit)/Surplus for the year (662) 431

Actuarial estimate of (over)/underpayment of pension contributions (111) 258

Pension finance cost/(income) 190 (205)

Enhanced pensions – interest/return on assets 67 64

Operating Position excluding FRS17 adjustment (516) 548







The College generated an operating deficit, excluding FRS17 adjustments, in 2008/09 of £516k. The deficit for

2008/09 included the release of a £146k over accrual relating to WBL in 2007/08 and a claw back of £125k for

2007/08 improving choices. Taking these into account the true operating position of the College is shown in the table

below:



2008/09 2007/08



Opening (Deficit)/Surplus (516) 548

Release of WBL over accrual 146 (146)

Claw back from Improving Choices 125 (125)



True Operating Position (245) 277



The College has accumulated reserves of £23,131k and a cash balance of £1,546k. The College wishes to continue to

accumulate reserves and cash balances in order to create a contingency fund.



Tangible fixed asset additions during the year amounted to £17m, £16m of which related to the new buildings on the

Kings Hedges site which were included as assets under construction as at 31 July 2009



The College has significant reliance on the LSC for its principal funding source, largely from recurrent grants. In

2008/09 the LSC provided 83% of the College’s total income.





Treasury policies and objectives



Treasury management is the management of the College’s cash flows, its banking, money market and capital market

transactions; the effective control of the risks associated with those activities; and the pursuit of optimum

performance consistent with those risks.

The College has a separate treasury management policy in place.



Cash flows



At £9.286m (2007/08 £10.000m inflow), operating cash out flow was unusually high. The net cash out flow

resulted from the capital building project.





5

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Operating and Financial Review (continued)

Liquidity



During the year the College took out 2 unsecured loans totalling £5.28m in order to help finance the new building on

its main site. The balance of the £23m capital cost was met by the use of the disposal proceeds from the sale of the

College’s Newmarket Road site for just over £18m.

The size of the College’s borrowings and its approach to the interest rates has been calculated to ensure a reasonable

cushion between the total cost of servicing the debt and the operating cashflow.



CURRENT AND FUTURE DEVELOPMENT AND PERFORMANCE



Student numbers



Student numbers and income for curriculum delivery continued to increase in 2008/9 in the priority full-time 16–18

category as follows, but there was a continuing movement away from 19+ general provision as the LSC increasingly

prioritises its funding to employer responsive:



2007/08 FT PT FTE

16–18 2,835 1,516 2,993

19+ 651 3,897 1,558

TOTAL 3,486 5,413 4,551



2008/9 FT PT SLN

16–18 2,785 1,643 4,681

19+ 588 2,747 1,560

TOTAL 3,373 4,390 6,241



Note 2008/09 numbers subject to minor change as final funding claims are audited and submitted.



Participation was extended, in particular by increased enrolment on entry and level 1 programmes targeted to

students with educational and often social/ financial disadvantage.



Student achievements



In 2008/9 student achievement at level 1/Entry Level is estimated at 79% (against previous year’s total of 77%).

Estimated achievement at level 2 is 82% (against previous year’s total of 82%). Achievement in terms of level 3 is

estimated at 82% (against a previous year’s total of 81%), and achievement at level H is estimated at 72% (against

previous year’s total of 71%). These are interim results based on figures for which the audit has yet to be completed.

In some cases, confirmation of achievement has not yet been received from Awarding Bodies. Subject to this the

trend of improved student success rates for the College continues year upon year, and this has been validated in the

full Ofsted Inspection the College had in March 2008.



Curriculum developments

The College had a very successful full Ofsted Inspection in March 2008, which characterised the College as a good

College with some outstanding features. Key strengths identified in this Inspection where:

 High success rates across Further Education, Work Based Learning (WBL) and Train To Gain (T2G)

 Good teaching, learning and assessment

 High levels of learner enjoyment

 Good provision of WBL and T2G

 Outstanding range of provision which is highly responsive to employer and community needs (this equates

to a Grade 1 for Key Question 3)

 Excellent support for learners with learning difficulties and disabilities

 Strong and highly effective leadership resulting in significant growth and improvement.







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Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Operating and Financial Review (continued)

In terms of Key Question 1, do Learners Achieve, the key feedback was:

 Success Rates on long courses for 19+ learners are improving and are significantly higher than National

Averages (>5% ahead at all 3 levels)

 Success Rates on long courses for 16-18 learners are improving and are higher than National Averages at

levels 1 and 2, and significantly ahead at level 2

 Improving retention rates at all levels, but still significantly below National Average at 16-18 Long

programme Level 3

 Improving Key Skills success rates, but still below National Averages

 High and improving success rates for WBL, 6% above National Averages for AMA and 12% above for

FMA, although some areas of under-performance

 High and improving success rates on Train to gain and Entry To Employment (E2E)

 Introduced successful measures to raise attendance, which has improved to the National Average of 83% in

this year

 Punctuality much improved, and appropriately challenged, with only some minor punctuality issues

 Very good monitoring of progress and very good progression between levels

 Good development of personal and occupational skills

 Learners enjoy their lessons, treat each other with respect and often work well in teams.





Staff and student involvement



The College considers good communication with its staff to be very important and to this end encourages student

representation on many of its formal committees, holds student and staff forums on key issues and undertakes

regular staff and student questionnaires. A weekly staff newsletter and full intranet also support good

communication. The College has an established Staff Forum to be the focal point for staff involvement in bringing

issues back to the Senior Management Team.





PRINCIPAL RISKS AND UNCERTAINTIES:



The College has undertaken further work during the year to develop and embed the system of internal control,

including financial, operational and risk management which is designed to protect the College’s assets and

reputation.



Based on the strategic plan, the Risk Management Group undertakes a comprehensive review of the risks to which

the College is exposed. They identify systems and procedures, including specific preventable actions which should

mitigate any potential impact on the College. In addition to the annual review, the Risk Management Group will also

consider any risks which may arise as a result of a new area of work being undertaken by the College.



A risk register is maintained at the College level which is reviewed at least annually by the Audit Committee and

more frequently where necessary. The risk register identifies the key risks, the likelihood of those risks occurring,

their potential impact on the College and the actions being taken to reduce and mitigate the risks. Risks are

prioritised using a consistent scoring system.



Outlined below is a description of the principal risk factors that may affect the College. Not all the factors are

within the College’s control. Other factors besides those listed below may also adversely affect the College.



1. Government funding



The College has considerable reliance on continued government funding through the LSC and HEFCE. In 2008/09,

83% of the College’s revenue was ultimately public funded and this level of requirement is expected to continue.

There are can be no assurance that government policy or practice will remain the same or that public funding will

continue at the same levels or on the same terms.



The College is aware of several issues which may impact on future funding:





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Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Operating and Financial Review (continued)

- The demand led funding system applied to FE colleges and other providers in respect of adult provision

from August 2008. The funding methodology applies a series of factors such as guided learning hours and

success rates to calculate an amount of funding to be received for each learner. Such funding cannot be

guaranteed though.

- The government is reviewing its priorities for the adult skills sector following the Leitch report into the

skills needed for the UK to compete in the global economy.

- The “Machinery of Government” changes expected to come into force from April 2010 which will see the

LSC dissolved and replaced with successor agencies such as the Young Persons Learning Agency (part of

the DCSF) and the Skills Funding Agency (part of the DIUS).



This risk is mitigated in a number of ways:

 Funding is derived through a number of direct and indirect contractual arrangements

 By ensuring the College is rigorous in delivering high quality education and training

 Considerable focus and investment is placed on maintaining and managing key relationships with the

various funding bodies

 Ensuring the College is focused on those priority sectors which will continue to benefit from public funding

 Regular dialogue with the regional LSC and with the successor agencies in due course.



2. Tuition fee policy



The LSC intend to raise individual contributions. Ministers have confirmed that the fee assumption will increase

from 42.5% in 2008/09, to 47.5% in 2009/10 and 50% in 2010/11. In line with the majority of other colleges,

Cambridge Regional College will seek to increase tuition fees in accordance with the rising fee assumptions. The

price elasticity of adult learning is not yet fully understood. The risk for the College is that demand falls off as fees

increased. This will impact on the growth strategy of the College.



This risk is mitigated in a number of ways:

 By ensuring the College is rigorous in delivering high quality education and training, thus ensuring value

for money for students

 Close monitoring of the demand for courses as prices change.



3. Maintain adequate funding of pension liabilities



The financial statements report the share of the pension scheme deficit on the College’s balance sheet in line with

the requirements of FRS 17.



STAKEHOLDER RELATIONSHIPS



In line with other colleges and with universities, Cambridge Regional College has many stakeholders. These

include:



 Students

 Funding Councils

 Staff

 Local employers (with specific links)

 Local Authorities

 Government Offices/ Regional Development Agencies

 The local community

 Other FE institutions

 Trade unions

 Professional bodies.



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Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Operating and Financial Review (continued)



The College recognises the importance of these relationships and engages in regular communication with them

through the College Internet site and by meetings.



Equal opportunities and employment of disabled persons



Cambridge Regional College is firmly committed to equalising opportunities for all who form the College

community and to ensuring an equal chance for all with whom we work. We believe all have a right to be valued

equally and to have equality of opportunity. This belief underpins everything that we do at the College. The

College’s Equal Opportunities Policy: Code of Practice is published on its intranet site. The College considers all

applications for employment from disabled persons, bearing in mind the aptitudes of the individuals concerned.

Where an existing employee becomes disabled, every effort is made to ensure that employment with the College

continues. The College’s policy is to provide training, career development and opportunities for promotion which

are, as far as possible, identical to those for other employees.



Disability statement



The College seeks to achieve the objectives set down in the Disability Discrimination Act 1995 as amended by the

Special Education Needs and Disability Act 2001 and 2005.



a As part of the redevelopment of the buildings it is installing lifts and ramps, etc, so that eventually most of the

facilities will allow access to people with a disability

b There is a list of specialist equipment, lighting for audio facilities, etc. which the College can make available for

use by students

c The admissions policy for all students is described in the College Charter. Appeals against a decision not to

offer a place are dealt with under the complaints policy

d The College has made a significant investment in the appointment of specialist lecturers to support students with

learning difficulties and/or disabilities. There are a number of student support assistants who can provide a

variety of support for learning. There is a continuing programme of staff development to ensure the provision of

a high level of appropriate support for students who have learning difficulties and/or disabilities

e Specialists programmes are described in programme information guides, and achievements and destinations are

recorded and published in the standard College format

f Counselling and welfare services are described in the College Charter

g The College’s formal disability statement document lists all the services and facilities available to students with a

disability. The documentation is available in various formats including Braille and audio.



Disclosure of information to auditors



The members who held office at the date of approval of this report confirm that, so far as they are each aware, there

is no relevant audit information of which the College’s auditors are unaware; and each member has taken all the

steps that he or she ought to have taken to be aware of any relevant audit information and to establish that the

College’s auditors are aware of that information.







Approved by order of the members of the Corporation on 03 December 2009 and signed on its behalf by:





……………………………………..

Christopher Spokes

Chairman









9

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Operating and Financial Review (continued)



Professional advisers



Financial statements and regularity auditors: Tenon Audit Limited

The Poynt

45 Wollaton Street

Nottingham, NG1 5FW



Internal auditors: PricewaterhouseCoopers LLP

Abacus House

Castle Park, Cambridge, CB3 0AN



Funding assurance auditors: KPMG LLP

2 Cornwall Street

Birmingham, B3 2DL



Bankers: Lloyds TSB Bank plc

25 Gresham Street

London, EC2V 7HN



Solicitors: Eversheds LLP

Senator House

85 Queen Victoria Street

London, EC4V 4J









10

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Statement of Corporate Governance and Internal Control

The College is committed to exhibiting best practice in all aspects of corporate governance. This summary describes

the manner in which the College has applied the principles set out in the revised Combined Code on Corporate

Governance issued by the London Stock Exchange in July 2006. Its purpose is to help the reader of the accounts

understand how the principles have been applied.



In the opinion of the Governors, the College complies with all the provisions of the Combined Code in so far as they

apply to the further education sector, and it has complied throughout the year ended 31 July 2009.





The Corporation



The composition of the Corporation is set out in Table 1. The current size and composition of the Corporation was

reviewed in 2008/09 and Corporation approved a reduction in the Board to 16 Members. The quorum of the

Corporation is seven members or 40% on the basis of a total Corporation membership of 16. Governors are required

to confirm their commitment to the principles of good governance as detailed in the Governors’ Handbook, and to

regularly assess their performance as a governing body. Governors agree an overall work plan, set targets and

establish work plans for the committees at the beginning of each academic year, which are reviewed as part of the

assessment of governor effectiveness. The Search Committee undertakes an audit of Governors’ attendance,

training and skills to ensure that the Corporation is meeting the requirements of good governance, and makes

recommendations to the Corporation.



It is the Corporation’s responsibility to bring independent judgement to bear on issues of strategy, performance,

resources and standards of conduct.



The Corporation is provided with regular and timely information on the overall financial performance of the

College, together with other information such as performance against funding targets, proposed capital expenditure,

quality matters, and personnel-related matters such as health and safety and environmental issues. The Corporation

meets on a termly basis.



The Corporation conducts its business through a number of committees. Each committee has its terms of reference,

which have been approved by the Corporation. These committees are Finance and Resources, Learning and

Achievement, Remuneration, Search & Governor Development, and Audit.



All Governors are able to take independent professional advice in furtherance of their duties at the College’s

expense and have access to the Clerk to the Corporation, who is responsible to the Corporation for ensuring that all

applicable procedures and regulations are complied with. The appointment, evaluation and removal of the Clerk are

matters for the Corporation as a whole.



Formal agendas, papers and reports are supplied to Governors in a timely manner, prior to Corporation meetings.

Briefings are also provided on an ad-hoc basis.



The Corporation has a strong and independent non-executive element and no individual or group dominates its

decision making process. The Corporation considers that each of its non-executive members is independent of

management and free from any business or other relationship which could materially interfere with the exercise of

their independent judgement.



There is a clear division of responsibility in that the roles of the Chairman and Principal are separate.









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Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Statement of Corporate Governance and Internal Control (continued)

Members



The members who served the Corporation during the year 2008/09 were as follows:

Name Date of appointment Term of Date of Status of Committees served

office resignation appointment



Christopher Spokes Reappointed July 2007 3 years - External Rem (Chair)

(Chair) F&R



Barry Popplewell (Vice Reappointed March 2007 4 years - External F&R (Chair),

Chair) L&A, Rem



David Adamson Reappointed July 2008 1 year - External L&A



Reza Assadi Reappointed April 2009 4 years - Staff L&A



Aaron Cook May 2008 1 year 16 January 2009 Student L&A

(deceased)

Tony Cooper July 2005 4 years External L&A (Chair)



Richard Dearing October 2001 n/a - Ex officio S&GD

F&R, L&A



Andrew Herbert December 2008 4 years - External F&R



Mina Jesa March 2007 4 years 15 October 2008 External L&A



Anne Kent Reappointed October 4 years - External L&A

2005



Vernice Key December 2005 4 years - External F&R, Rem



Amanda Last Reappointed March 2008 16 31 July 2009 External A

months



Vicky Parrett December 2007 4 years - Staff L&A



Alex Plant December 2007 4 years - External F&R

S&GD (Chair)



Jill Preston March 2007 4 years - External L&A



Paul Smith October 2008 4 years - External F&R



Raymond Tait Reappointed July 2008 1 year 31 July 2009 External A (Chair)

S&GD



Benito Walsh October 2008 1 31 July 2009 Student









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Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Statement of Corporate Governance and Internal Control (continued)

Committee Members

The Committee Members, other than Governors, who served the Corporation during the year and up to the date of

signature of this report were as follows:



Name Date of appointment Term of Date of Status of Committees served

office resignation appointment



James Allen September 2008 2 years - Committee Rem

Member



Ros Francis Reappointed September - Committee F&R

2004 Member



Key to Committees

F&R Finance and Resources

L&A Learning and Achievement

Rem Remuneration

A Audit

S&GD Search and Governor Development



Julia Kennedy was Clerk to the Corporation for the 2008/09 year.





Appointments to the Corporation



Any new appointments to the Corporation are a matter for the consideration of the Corporation as a whole. The

Corporation has a Search and Governor Development Committee, comprised of the Principal and two other

members of the Corporation, which is responsible for the selection and nomination of any new member for the

Corporation’s consideration. The Corporation is responsible for ensuring that appropriate training is provided as

required.



Members of the Corporation are appointed for a term of office of normally four years and re-appointed for further

terms by approval of the Corporation.



Transparency arrangements



The Corporation conducts its business through a number of committees. Each committee has terms of reference

which have been approved by the full Corporation.



These committees are: Audit, Finance and Resources, Remuneration, Search and Governor Development, and

Learning and Achievement. There is also a Special Committee, which is convened as required. The Finance and

Resources Committee, Audit Committee, and Learning and Achievement Committee and the full Corporation meet

at least termly. The Remuneration and the Search and Governor Development Committees normally meet less

frequently. The Special Committee was not convened in 2008/09.



Full minutes of all meetings, except those deemed to be confidential by the Corporation, are posted on the College

website and printed copies are available from the Clerk to the Corporation at:



Cambridge Regional College

Science Park Campus

Kings Hedges Road

Cambridge

CB4 2QT









13

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Statement of Corporate Governance and Internal Control (continued)

The Clerk to the Corporation maintains a register of financial and personal interests of the Governors. The register

is available for inspection at the above address.



Remuneration Committee



Throughout the year ending 31 July 2009, the College’s Remuneration Committee comprised three members of the

Corporation. The Committee’s responsibilities are to make recommendations to the Corporation on the

remuneration and benefits of the Principal and other senior postholders.



Details of remuneration for the year ended 31 July 2009 are set out in note 8 to the financial statements.



Audit Committee



The Audit Committee comprises three members of the Corporation (excluding the Principal and Chair) and an

independent external co-opted member. The Committee operates in accordance with written terms of reference

approved by the Corporation. Its purpose is to advise the Corporation on the adequacy and effectiveness of the

College’s systems of internal control and its arrangements for risk management, control and governance processes.



The Audit Committee meets on a termly basis and provides a forum for reporting by the College’s internal and

financial statement auditors, who have access to the Committee for independent discussion, without the presence of

College management.



The College’s internal auditors monitor the systems of internal control, risk management controls and governance

processes in accordance with an agreed plan of input and report their findings to management, the Finance and

Resources Committee and the Audit Committee.



Management are responsible for the implementation of agreed recommendations and internal audit undertake

periodic follow-up reviews to ensure such recommendations have been implemented.



The Audit Committee also advises the Corporation on the appointment of internal and financial statements auditors

and their remuneration for both audit and non-audit work.



Internal Control



Scope of responsibility



The Corporation is ultimately responsible for the College’s system of internal control and for reviewing its

effectiveness. However, such a system is designed to manage rather than eliminate the risk of failure to achieve

business objectives, and can provide only reasonable and not absolute assurance against material misstatement or

loss.



The Corporation has delegated the day-to-day responsibility to the Principal, as Accounting Officer, for maintaining

a sound system of internal control that supports the achievement of the College’s policies, aims and objectives,

whilst safeguarding the public funds and assets for which he is personally responsible, in accordance with the

responsibilities assigned to him in the Financial Memorandum between the College and the Learning and Skills

Council (LSC). He is also responsible for reporting to the Corporation any material weaknesses or breakdowns in

internal control.









14

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Statement of Corporate Governance and Internal Control (continued)



The purpose of the system of internal control



The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of

failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance

of effectiveness. The system of internal control is based on an ongoing process designed to identify and prioritise the

risks to the achievement of college policies, aims and objectives, to evaluate the likelihood of those risks being

realised and the impact should they be realised, and to manage them efficiently, effectively and economically. The

system of internal control has been in place in Cambridge Regional College for the year ended 31 July 2009 and up

to the date of approval of the annual report and accounts.



Capacity to handle risk



The Corporation has reviewed the key risks to which the College is exposed, together with the operating, financial

and compliance controls that have been implemented to mitigate those risks. The Corporation is of the view that

there is a formal ongoing process for identifying, evaluating and managing the College's significant risks that has

been in place for the period ending 31 July 2009 and up to the date of approval of the annual report and accounts.

This process is regularly reviewed by the Corporation, and where concerns have been expressed by the internal

auditors about the embedding of risk management, the Corporation is clear that these are being addressed.



The risk and control framework



The system of internal control is based on a framework of regular management information, administrative

procedures including the segregation of duties, and a system of delegation and accountability. In particular, it

includes:



 comprehensive budgeting systems with an annual budget, which is reviewed and agreed by the governing

body



 regular reviews by the governing body of periodic and annual financial reports which indicate financial

performance against forecasts



 setting targets to measure financial and other performance



 clearly defined capital investment control guidelines, and



 the adoption of formal project management disciplines, where appropriate.



The College has an internal audit service, which operates in accordance with the requirements of the LSC’s Audit

Code of Practice. The work of the internal audit service is informed by an analysis of the risks to which the College

is exposed, and annual internal audit plans are based on this analysis. The analysis of risks and the internal audit

plans are endorsed by the Corporation on the recommendation of the Audit Committee. At minimum annually, the

Head of Internal Audit (HIA) provides the governing body with a report on internal audit activity in the College.

The report includes the HIA’s independent opinion on the adequacy and effectiveness of the College’s system of

risk management, controls and governance processes.



Review of effectiveness



As Accounting Officer, the Principal has responsibility for reviewing the effectiveness of the system of internal

control. The Principal’s review of the effectiveness of the system of internal control is informed by:

 the work of the internal auditors

 the work of the executive managers within the College who have responsibility for the development and

maintenance of the internal control framework, and

 comments made by the College’s financial statements auditors and the LSC-appointed funding auditors in

their management letters and other reports.





15

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Statement of Corporate Governance and Internal Control (continued)



The Principal has been advised on the implications of the result of his review of the effectiveness of the system of

internal control by the Audit Committee which oversees the work of the internal auditor, and a plan to address

weaknesses and ensure continuous improvement of the system is in place.



The Senior Management Team receives reports setting out key performance and risk indicators and considers

possible control issues brought to their attention by early warning mechanisms, which are embedded within the

departments and reinforced by risk awareness training. The Senior Management Team and the Audit Committee

also receive regular reports from internal audit, which include recommendations for improvement. The Audit

Committee's role in this area is confined to a high-level review of the arrangements for internal control. The

Corporation's agenda includes a regular item for consideration of risk and control and receives reports thereon from

the Senior Management Team and the Audit Committee. The emphasis is on obtaining the relevant degree of

assurance and not merely reporting by exception. At its December 2009 meeting, the Corporation carried out the

annual assessment for the year ended 31 July 2009 by considering documentation from the Senior Management

Team and internal audit, and taking account of events since 31 July 2009.



Going Concern



After making appropriate enquiries, the Corporation considers that the College has adequate resources to continue in

operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in

preparing the financial statements.





Approved by order of the members of the Corporation on 03 December 2009 and signed on its behalf by:









..............……………………. .............…………………….

Christopher Spokes Richard F Dearing

Chairman Principal









16

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Statement of the responsibilities of the members of the Corporation

The members of the Corporation of the College are required to present audited financial statements for each

financial year.



Within the terms and conditions of the Financial Memorandum agreed between the Learning and Skills Council and

the Corporation of the College, the Corporation, through its Principal, is required to prepare financial statements for

each financial year in accordance with the 2007 Statement of Recommended Practice – Accounting for Further and

Higher Education Institutions and with the Accounts Direction issued by the Learning and Skills Council, and which

give a true and fair view of the state of affairs of the College and the result for that year.



In preparing the financial statements, the Corporation is required to:

 select suitable accounting policies and apply them consistently

 make judgements and estimates that are reasonable and prudent

 state whether applicable Accounting Standards have been followed, subject to any material departures

disclosed and explained in the financial statements, and

 prepare financial statements on the going concern basis unless it is inappropriate to assume that the College

will continue in operation.







The Corporation is also required to prepare a Members Report which describes what it is trying to do and how it is

going about it, including the legal and administrative status of the College.



The Corporation is responsible for keeping proper accounting records which disclose with reasonable accuracy at

any time the financial position of the College and to enable it to ensure that the financial statements are prepared in

accordance with the relevant legislation of incorporation and other relevant accounting standards. It is responsible

for taking steps that are reasonably open to it to safeguard assets of the College and to prevent and detect fraud and

other irregularities.



The maintenance and integrity of the College website is the responsibility of the Corporation of the College; the

work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors

accept no responsibility for any changes that may have occurred to the financial statements since they were initially

presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of

financial statements may differ from legislation in other jurisdictions.



Members of the Corporation are responsible for ensuring that expenditure and income are applied for the purposes

intended by Parliament and that the financial transactions conform to the authorities that govern them. In addition

they are responsible for ensuring that funds from the LSC are used only in accordance with the Financial

Memorandum with the LSC and any other conditions that the LSC may prescribe from time to time. Members of the

Corporation must ensure that there are appropriate financial and management controls in place in order to safeguard

public and other funds and to ensure they are used properly. In addition, members of the Corporation are responsible

for securing economical, efficient and effective management of the College’s resources and expenditure, so that the

benefits that should be derived from the application of public funds by the LSC are not put at risk.



Approved by order of the members of the Corporation on 03 December 2009 and signed on its behalf by:









..............…………………….

Christopher Spokes

Chairman







17

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Independent Auditors’ Report to the Corporation of Cambridge Regional College



We have audited the financial statements of Cambridge Regional College for the year ended 31 July 2009, which

comprise the income and expenditure account, the balance sheet, the cash flow statement, the statement of total

recognised gains and losses and the related notes. These financial statements have been prepared under the

historical cost convention as modified by the revaluation of certain fixed assets and the accounting policies set out

therein.



This report is made solely to the Corporation, as a body, in accordance with statutory requirements. Our audit work

has been undertaken so that we might state to the Corporation, as a body, 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 Corporation, as a body, for our audit work, for this report, or for the

opinions we have formed.



Respective Responsibilities of the Members of the Corporation of Cambridge Regional College and Auditors

As described in the Statement of Responsibilities the College’s Corporation is responsible for preparing the

Members Report and financial statements in accordance with the Accounts Direction issued by the Learning and

Skills Council, the 2007 Statement of Recommended Practice – Accounting for Further and Higher Education,

applicable law, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).



Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements

and International Standards on Auditing (UK and Ireland).



We report to you our opinion as to whether the financial statements give a true and fair view and are properly

prepared in accordance with the 2007 Statement of Recommended Practice – Accounting for Further and Higher

Education. We also report to you if, in our opinion, the Members’ Report is not consistent with the financial

statements, if the College has not kept proper accounting records, or if we have not received all the information and

explanations we require for our audit.



We read the Members’ Report and consider the implications for our report if we become aware of any apparent

misstatement within it.



Basis of Audit Opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the

Auditing Practices Board and the Audit Code of Practice issued by the Learning and Skills Council. An audit

includes examination, on a test basis, of evidence relevant to amounts and disclosures in the financial statements. It

also includes an assessment of the significant estimates and judgements made by the College’s Corporation in the

preparation of the financial statements, and of whether the accounting policies are appropriate to the College’s

circumstances, consistently applied and adequately disclosed.



We planned and performed our audit so as to obtain all the information and explanations which we considered

necessary in order to provide us with sufficient evidence to give us reasonable assurance that the financial

statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming

our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.









18

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Independent Auditors’ Report to the Corporation of Cambridge Regional College

(continued)

Opinion

In our opinion;



 the financial statements give a true and fair view, in accordance with UK Generally Accepted Accounting

Practice, of the state of affairs of the College as at 31 July 2009 and of the College’s surplus of income over

expenditure for the year then ended; and



 the financial statements have been properly prepared in accordance with the 2008/09 Accounts Direction

issued by the Learning and Skills Council and the 2007 Statement of Recommended Practice – Accounting

for Further and Higher Education.









Tenon Audit Limited

Registered Auditor



The Poynt

45 Wollaton Street

Nottingham

NG1 5FW



Date:









19

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Independent Auditors’ Report on Regularity to the Corporation of Cambridge Regional

College (‘the Corporation’) and the Learning and Skills Council (‘the LSC’)



In accordance with the terms of our engagement letter dated 20 July 2009 and further to the requirements of the

LSC, we have carried out a review to obtain assurance about whether, in all material respects, the expenditure and

income of Cambridge Regional College (‘the College’) for the year ended 31 July 2009 have been applied to the

purposes identified by Parliament and the financial transactions conform to the authorities which govern them.



This report is made solely to the Corporation and the LSC. Our review work has been undertaken so that we might

state to the Corporation and the LSC those matters we are required to state to it in a 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

Corporation and the LSC, for our review work, for this report, or for the opinion we have formed.



Respective responsibilities of the Members of the Corporation of Cambridge Regional College and Auditors

The College’s Corporation is responsible, under the requirements of the Further & Higher Education Act 1992,

subsequent legislation and related regulations, for ensuring that expenditure and income are applied for the purposes

intended by Parliament and the financial transactions conform to the authorities which govern them.

Our responsibilities for this review are established in the United Kingdom by our profession’s ethical guidance and

the audit guidance set out in the Audit Code of Practice and the Regularity Audit Framework issued by the LSC.

We report to you whether, in our opinion, in all material respects, the College’s expenditure and income for the year

ended 31 July 2009 have been applied to purposes intended by Parliament and the financial transactions conform to

the authorities which govern them.



Basis of opinion

We conducted our review in accordance with the Audit Code of Practice and the Regularity Audit Framework

issued by the LSC. Our review includes examination, on a test basis, of evidence relevant to the regularity and

propriety of the College’s income and expenditure.



Opinion

In our opinion, in all material respects the expenditure and income for the year ended 31 July 2009 have been

applied to purposes intended by Parliament and the financial transactions conform to the authorities which govern

them.









Tenon Audit Limited

Registered Auditor



The Poynt

45 Wollaton Street

Nottingham

NG1 5FW



Date:









20

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Income and expenditure account

for the year ended 31 July 2009



Restated

2009 2008

Note £’000 £’000

Income

Funding council income 2 30,482 26,579

Tuition fees and education contracts 3 3,996 3,260

Research grants and contracts 4 - 10

Other income 5 1,844 2,307

Investment income 6 188 739





Total income 36,510 32,895





Expenditure

Staff costs 7 23,317 22,098

Other operating expenses 9 11,523 8,315

Depreciation 12 1,932 1,974

Interest and other finance costs 10 400 77





Total expenditure 37,172 32,464









(Deficit)/surplus on continuing operations after depreciation of (662) 431

assets and before tax





Profit on sale of assets

- 15,323









(Deficit)/surplus for the year retained within general reserves (662) 15,754







The income and expenditure account is in respect of continuing activities.



The net deficit is stated after a charge for the year of £146,000 (2008:£117,000) relating to the accounting adjustment

for FRS17 : Retirement Benefits.









21

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Statement of total recognised gains and losses

for the year ended 31 July 2009





Restated

2009 2008

Note £’000 £’000



(Deficit)/surplus on continuing operations after

depreciation of assets at valuation and tax 19 (662) 15,754

Actuarial loss in respect of pension scheme 23 (4,208) (3,972)

Actuarial gain/(loss) in respect of enhanced pensions 23 32 (112)



Total recognised gains and losses for the year (4,838) 11,670

Prior year adjustment 28 (178) -





Total recognised (losses)/gains since last report (5,016) 11,670







Reconciliation



Opening reserves 30,001 18,331

Total recognised gains and losses for the year (4,838) 11,670





Closing reserves 25,163 30,001









Statement of historical cost surpluses and deficits

for the year ended 31 July 2009



Restated

2009 2008

Note £’000 £’000



(Deficit)/surplus on continuing operations after (662) 15,754

depreciation of assets at valuation and tax



Difference between historical cost depreciation and the 19 158 169

actual charge for the year calculated on the revalued amount



Realisation of property valuation gains of previous years 19 - 2,150





Historical cost (deficit)/surplus for the year (504) 18,073









22

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Balance sheet

at 31 July 2009

Restated

2009 2008

Note £’000 £’000

Fixed assets

Tangible assets 12 58,670 43,892



Current assets

Stock 24 28

Debtors 13 2,550 1,328

Cash at bank and in hand 1,546 10,832





Total current assets 4,120 12,188



Creditors: Amounts falling due within one year 14 (4,282) (3,433)





Net current (liabilities)/assets (162) 8,755





Total assets less current liabilities 58,508 52,647



Creditors: Amounts falling due after more than one year 15 (5,280) -





Net assets excluding pension liability 53,228 52,647

Net pension liability 23 (9,421) (5,174)





Net assets including pension liability 43,807 47,473







Deferred capital grants 17 18,644 17,472



Reserves

Income and expenditure account excluding pension reserve 19 23,131 23,564

Pension Reserve 23 (9,421) (5,174)



Income and expenditure account including pension reserve 13,710 18,390

Revaluation reserve 18 11,453 11,611





43,807 47,473





The financial statements on pages 21 to 47 were approved by the Corporation on 03 December 2009 and were

signed on its behalf by:



.................

Chairman



.................

Principal







23

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Cash flow statement

for the year ended 31 July 2009



Restated

2009 2008

Note £’000 £’000



Cash (outflow)/inflow from operating activities 20 (51) 1,435



Returns on investments and servicing of finance 22 45 521



Capital expenditure and financial investment 22 (14,606) 10,405





Cash (outflow)/inflow before use of liquid resources and financing (14,612) 12,361



Financing 22 5,326 (2,361)





(Decrease)/Increase in cash 21 (9,286) 10,000









Reconciliation of net cash flow to movement in net (debt)/funds



£’000 £’000



(Decrease)/increase in cash in the period (9,286) 10,000

Cash inflow from new secured loan (5,326) -

Cash outflow from loan payments - 2,361

Net funds/(debt) at 1 August 10,832 (1,529)





Net (debt)/funds at 31 July 2009 (3,780) 10,832









24

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts

1 Accounting policies



Statement of accounting policies



The following accounting policies have been applied consistently in dealing with items which are considered

material in relation to the financial statements.



Basis of preparation



These financial statements have been prepared in accordance with the Statement of Recommended Practice:

Accounting for Further and Higher Education 2007 (the SORP) and in accordance with applicable Accounting

Standards. They conform to guidance published by the LSC in the Accounts Direction Handbook.



Basis of accounting



The financial statements are prepared in accordance with the historical cost convention modified by the revaluation

of certain fixed assets.



Recognition of income



The recurrent grant from HEFCE represents the funding allocations attributable to the current financial year and is

credited direct to the income and expenditure account.



LSC recurrent grants are recognised in line with best estimates for the period of what is receivable and depend on

the particular income stream involved. Any under or over achievement for the LSC adult learner responsive funding

element is adjusted for and reflected in the level of recurrent grant recognised in the income and expenditure

account. The final grant income is normally determined with the conclusion of the year end reconciliation process

with the LSC at the end of November following the year end. Employer responsive grant income is recognised

based on a year end reconciliation of income claimed and actual delivery with the LSC. 16-18 learner-responsive

funding is not normally subject to a reconciliation and is therefore not subject to contract adjustments.



Non-recurrent grants from the LSC or other bodies received in respect of the acquisition of fixed assets are treated

as deferred capital grants and amortised in line with depreciation over the life of the assets.



Income from tuition fees is recognised in the period for which it is receivable and includes all fees chargeable to

students or their sponsors.



Income from grants, contracts and other services rendered is included to the extent of the completion of the contract

or service concerned. All income from short-term deposits is credited to the income and expenditure account in the

period in which it is earned.



Post retirement benefits



Retirement benefits to employees of the College are provided by the Teachers’ Pension Scheme (TPS) and the Local

Government Pension Scheme (LGPS). These are defined benefit schemes, which are externally funded and

contracted out of the State Earnings-Related Pension Scheme (SERPS).



Contributions to the TPS are calculated so as to spread the cost of pensions over employees’ working lives with the

College in such a way that the pension cost is a substantially level percentage of current and future pensionable

payroll. The contributions are determined by qualified actuaries on the basis of quinquennial valuations using a

prospective benefit method. As stated in Note 20, the TPS is a multi employer scheme and the College is unable to

identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS

is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year.



The assets of the LGPS are measured using closing market values. LGPS liabilities are measured using the projected

unit method and discounted at the current rate of return on a high quality corporate bond of equivalent term and



25

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

1 Accounting policies (continued)



currency to the liability. The increase in the present value of the liabilities of the scheme expected to arise from

employee service in the period is charged to the operating surplus. The expected return on the scheme’s assets and

the increase during the period in the present value of the scheme’s liabilities, arising from the passage of time, are

included in pension finance costs. Actuarial gains and losses are recognised in the statement of total recognised

gains and losses.



Enhanced Pensions



The actual cost of any enhanced ongoing pension to a former member of staff is paid by a college annually. An

estimate of the expected future cost of any enhancement to the ongoing pension of a former member of staff is

charged in full to the College’s income and expenditure account in the year that the member of staff retires. In

subsequent years a charge is made to provisions in the balance sheet using the enhanced pension spreadsheet

provided by the LSC.



Tangible fixed assets



Land and buildings



The College’s buildings are specialised buildings and therefore it is not appropriate to value them on the basis of open

market value. Land and buildings inherited from the Local Education Authority are stated in the balance sheet at

valuation on the basis of depreciated replacement cost or, in the case of buildings constructed, land at valuation plus

construction costs. Land and buildings acquired since Incorporation are included in the balance sheet at cost.

Freehold land is not depreciated. Freehold buildings are depreciated over their expected useful economic life to the

College of 50 years. The College has adopted the transitional provisions of FRS 15 and has determined not to

subsequently revalue its fixed assets from the amounts currently included within the financial statements. The

College has a policy of depreciating major adaptations to buildings over the period of their useful economic life.



Where land and buildings are acquired with the aid of specific grants, they are capitalised and depreciated as above.

The related grants are credited to a deferred capital grant 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.



Finance costs which are directly attributable to the construction of land and 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 any fixed asset(s) may not be recoverable.



Assets under construction



Assets under construction are accounted for at cost, based on the value of architects’ certificates and other direct

costs, incurred to 31 July. They are not depreciated until they are brought into use.



Subsequent expenditure on existing fixed assets

Where significant expenditure is incurred on tangible fixed assets it is charged to the income and expenditure

account in the period it is incurred, unless it meets one of the following criteria, in which case it is capitalised and

depreciated on the relevant basis:

 Market value of the fixed asset has subsequently improved

 Asset capacity increases

 Substantial improvement in the quality of output or reduction in operating costs

 Significant extension of the asset’s life beyond that conferred by repairs and maintenance.







26

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

1 Accounting policies (continued)



Buildings owned by third parties

Where land and buildings are used, but the legal rights are held by a third party, for example a charitable trust, they

are only capitalised if the College has rights or access to ongoing future economic benefit.

These assets are then depreciated over their expected useful economic life.



Equipment



Equipment costing less than £1,000 per individual item is written off to the income and expenditure account in the

period of acquisition. All other equipment is capitalised at cost. Equipment inherited from the Local Education

Authority is included in the balance sheet at valuation.



Equipment is depreciated over its useful economic life as follows:



College bus - 15 years

Machinery and equipment - 5 years

Furniture and fittings - 5 years

Computer equipment - 3 years



Where equipment is acquired with the aid of specific grants, it is capitalised and depreciated in accordance with the

above policy, with the related grant being credited to a deferred capital grant account and released to the income and

expenditure account over the expected useful economic life of the related equipment.



Leased assets



Costs in respect of operating leases are charged on a straight line basis over the lease term.



Stocks



Stocks are stated at the lower of their cost and net realisable value. Where necessary, provision is made for

obsolete, slow moving and defective stocks.



Maintenance of premises



The cost of routine corrective maintenance is charged to the income and expenditure account in the period it is

incurred.



Foreign currency translation



Transactions denomination in foreign currencies are recorded using the exchange rate at the date of the transactions.

Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the

end of the financial year with all resulting exchange differences being taken to the income and expenditure account

in the period in which they arise.









27

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

1 Accounting policies (continued)



Taxation



The College is an exempt charity within the meaning of schedule 2 of the Charities Act 1993, as amended by the

Charities Act 2006 and as such is a charity within the meaning of section 506(1) of the Income and Corporation

Taxes Act (ICTA) 1988. Accordingly, the College is potentially exempt from taxation in respect of income or

capital gains received within categories covered by section 505 of the ICTA 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. For this reason the College is generally

unable to recover input VAT it suffers on goods and services purchased. Non-pay expenditure is therefore shown

inclusive of VAT with any partial recovery netted off against these figures.





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 benefit will be required to settle the obligation and a reliable estimate can

be made of the amount of the obligation.



Agency arrangements



The College acts as an agent in the collection and payment of Learner Support Funds. Related payments received

from the LSC and subsequent disbursements to students are excluded from the Income and Expenditure account and

are shown separately in Note 27, except for the 5 per cent of the grant received which is available to the College to

cover administration costs relating to the grant. The College employs one member of staff dedicated to the

administration of Learner Support Fund applications and payments.









28

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)



2 Funding council income



2009 2008

£’000 £’000



Recurrent grant - LSC 21,109 20,732

Recurrent grant - HEFCE 178 279

Work based learning 2,252 2,781

Releases of deferred capital grants (note 17) 639 667

Local initiative funds 714 1,114

Centres for Vocational Excellence 30 45

ESF Co-Financing - (101)

Train to Gain* 5,560 1,012

Increasing Flexibility 14-16 year olds - 50







30,482 26,579









*In 2007/08 the College was the lead partner in a consortium to deliver Train To Gain in the Cambridgeshire region.

This consortium was disbanded at the end of 2007/08 when the College accepted its own Train to Gain contract. At

this time there were still consortium learners undertaking qualifications and therefore consortium income has been

claimed during 2008/09. The income shown above represents that earned by the College in its capacity both as a

provider and as the consortium lead. All other income claimed from the LSC and payable to consortium partners has

been excluded from these accounts. Total income claimed in the year under this arrangement and the related

payments to partners was as follows:



2009 2008

£’000 £’000



Train to Gain Income as provider 5,547 -

Train to Gain Income as lead partner 201 2,240

Payments to Non-college partners (56) (793)

Payments to FE College Partners (132) (387)

Creditor carried forward - (48)



Net Income 5,560 1,012









29

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

3 Tuition fees and education contracts

2009 2008

£’000 £’000



Tuition Fees 3,264 2,973

Education Contracts 732 287



3,996 3,260









4 Research grants and contracts

2009 2008

£’000 £’000



Other grants and contracts - 10





- 10









5 Other income

Restated

2009 2008

£’000 £’000



Residences, catering and conferences 34 32

Other income generating activities 53 68

Releases from deferred capital grants (non-LSC) (note 17) 293 323

Other income 1,464 1,884





1,844 2,307









30

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)





6 Investment income



2009 2008

£’000 £’000



Other interest receivable 188 598

Pension finance income (note 23) - 141





188 739







7 Staff numbers and costs



The average number of persons employed by the group (including senior post holders) during the year, expressed as

full-time equivalents, was as follows:



2009 2008

Number Number



Teaching Staff 433 409

Non Teaching Staff 215 186





648 595



Staff costs for the above persons were as follows:



2009 2008

£’000 £’000





Teaching departments 18,470 15,890

Teaching support services 1,527 945

Other support services 134 134

Administration and central services 1,905 3,268

Facilities 566 534

General education services 792 1,018

Staff restructuring 34 51

FRS17 Retirement benefit charge (111) 258





23,317 22,098









31

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

7 Staff numbers and costs (continued)



2009 2008

£’000 £’000



Wages and salaries 18,319 16,453

Social security costs 1,302 1,193

Other pension costs (including FRS 17 adjustments of (£111,000) – 2008 2,134 2,281

£258,000)

Restructuring costs 34 51



Payroll Subtotal 21,789 19,978



Contracted out staffing services 1,528 2,120





23,317 22,098









Restatement of comparative information



The number of staff, including senior post-holders and the Principal, who received emoluments in the following

ranges was:



2009 2009 2008 2008

Number of Number of Number of Number of

senior post- other staff senior post- other staff

holders holders



£60,001 to £70,000 - 7 - 4

£70,001 to £80,000 - 2 - 1

£80,001 to £90,000 - - - -

£90,001 to £100,000 - - - -

£100,000 to £110,000 - - 3 -

£110,000 to £120,000 3 - - -

£120,000 to £130,000 - - - -

£130,000 to £140,000 - - - -

£140,000 to £150,000 - - - -

£150,000 to £160,000 - - 1 -

£160,000 to £170,000 1 - - -



A general pay award of 3.2% (2007/08:3.02% with effect from 1 August 2007) was made with effect from 1 October

2008, and was approved by the Corporation.









32

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

8 Emoluments of senior post holders and members

Senior postholders are defined as members of the senior management team.

2009 2008

Number Number

The number of senior post-holders including the Principal was 4 4





Senior post-holders’ emoluments are made up as follows:



2009 2008

£’000 £’000



Salaries 417 396

Benefits in kind 21 29

Pension contributions 59 56





497 481







The above emoluments include amounts payable to the Principal (who is also the highest paid senior post-holder) of:



2009 2008

£’000 £’000

Salaries 137 130

Benefits in kind 7 9

Pension contributions 19 18





163 157







The pension contributions in respect of the Principal and senior post-holders are in respect of employer’s contributions

to the Teachers’ Pension Scheme or the Local Government Pension Scheme, and are paid at the same rate as for other

employees.



The members of the Corporation other than the Principal and the staff member did not receive any payment from the

College other than the reimbursement of travel and subsistence expenses incurred in the course of their duties.

During the financial year ended 31 July 2009 this amounted to a total of £3,367



As at 1 October 2008 the Principal received an increase of 4.66% to his annual salary (2007/08:salary increase of

10.98%), and the senior post-holders similarly each received an increase of 4.66% (2007/08:salary increase of

11.92%). No bonuses or other salary enhancements were awarded to senior post-holders or other higher paid staff.



All salary increases were approved by the Corporation.









33

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)



9 Other operating expenses

2009 2008

£’000 £’000



Teaching departments 5,720 1,961

Contracted-out lecturing services 266 198

Teaching support services 1,346 1,311

Other support services 90 586

Administration and central services 988 1,195

General education 933 1,098

Premises costs – running costs 865 844

– rents and leases (2) -

Planned maintenance 1,228 844

Franchised provision 89 261

Other expenses - 17





11,523 8,315



Other operating expenses include:

Auditors’ remuneration:

Financial statements audit 19 17

Internal audit 28 28

Other services provided by funding auditors 9 20

Hire of Land and Buildings 83 1

Hire of plant and machinery – operating leases 185 78

Hire of other assets – operating leases 251 167







10 Interest and other finance costs

2009 2008

£’000 £’000



Interest payable on bank loan 143 77

Pension finance costs (note 23) 257 -



400 77







11 Taxation



The members do not believe the College was liable for any Corporation tax arising out of its activities during either

period.









34

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)



12 Tangible fixed assets



Land and Buildings Assets under

Freehold Equipment Construction Total

£’000 £’000 £’000 £’000

Cost or valuation

At 1 August 2008 (restated) 42,456 7,376 7,676 57,508

Additions - 715 15,995 16,710

Transfers 672 242 (914) -

Surplus on revaluation - - - -

Disposals - - - -





At 31 July 2009 43,128 8,333 22,757 74,218





Accumulated depreciation

At 1 August 2008 (restated) 8,748 4,868 - 13,616

Charge for year 769 1,163 - 1,932

Revaluation - - - -

Eliminated in respect of disposals - - - -





At 31 July 2009 9,517 6,031 - 15,548





Net book value

At 31 July 2009 33,611 2,302 22,757 58,670



At 31 July 2008 (restated) 33,708 2,508 7,676 43,892



Inherited 11,453 - - 11,454

Financed by capital grant 15,535 643 2,247 18,425

Other 6,623 1,659 20,510 28,791





At 31 July 2009 33,611 2,302 22,757 58,670









The transitional rules set out in FRS 15 Tangible Fixed Assets have been applied on implementing FRS 15.

Accordingly the book values at implementation have been retained.



Land and buildings were valued for the purpose of the 1994 financial statements as follows:

Newmarket Road: depreciated replacement cost by a firm of independent chartered surveyors

Kings Hedges: costs of construction including VAT plus valuation of land by a firm of independent chartered

surveyors.

Other tangible fixed assets inherited from the local education authority at incorporation have been valued by the

Corporation on a depreciated replacement cost basis with the assistance of independent professional advice.

If inherited land and buildings and equipment had not been valued they would have been included at nil value.







35

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

12 Tangible fixed assets (continued)

Land and buildings with a net book value of £11,454,000 have been funded from local education authority sources.

Should these assets be sold the College would have to use the sale proceeds in accordance with the financial

memorandum with the LSC.





13 Debtors

2009 2008

£’000 £’000

Amounts falling due within one year:

Trade debtors 286 237

Other debtors 25 8

Prepayments and accrued income 1,038 484

Amounts owed by the LSC 1,201 599





2,550 1,328







14 Creditors: Amounts falling due within one year



2009 2008

£’000 £’000



Bank loan and overdraft 46 -

Trade creditors 2,137 1,522

Other taxation and social security 739 547

Payments received in advance 817 719

Accruals 543 559

Amounts owed to the LSC - 86





4,282 3,433









36

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

15 Creditors: Amounts falling due after more than one year



2009 2008

£’000 £’000



Bank loans 5,280 -







Bank loans and overdrafts are repayable as follows:

In one year or less 46 -

Between one and two years 117 -

Between two and five years 387 -

Greater than five years 4,776 -





5,326 -







Bank loans in the amount of £2,826,000 at an interest rate of 5.035% are repayable by instalments falling due

between 30 April 2009 and 30 July 2021. Bank loans in the amount of £2,500,000 at an interest rate of 6.065% are

repayable by instalments falling due between 14 July 2009 and 15 April 2019.





16 Provisions for liabilities and charges





2009 2008

£’000 £’000



At 1 August - -

Prior year adjustment - -

At 1 August restated - -

Increase in provision - -

Release of provision - -

Expenditure in the period - -

Transferred from income and expenditure account - -





At 31 July 2009 - -









37

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)



17 Deferred capital grants





LSC Other grants Total

£’000 £’000 £’000

At 1 August 2008

Land and buildings 16,205 92 16,297

Equipment 476 699 1,175

Cash received:

Land and buildings 2,059 23 2,082

Equipment - 22 22

Released to income and expenditure account:

Land and buildings (440) (2) (442)

Equipment (199) (291) (490)





At 31 July 2009 18,101 543 18,644



At 31 July 2009



Land and buildings 17,824 113 17,937

Equipment 277 430 707





18,101 543 18,644







An analysis of capital grants received from the Learning and Skills Council during 2008/09 is set out below:



2009 2008

£’000 £’000



DDA infrastructure - 100

Support for major works 2,059 229





2,059 329







18 Revaluation reserve

2009 2008

£’000 £’000



At 1 August 2008 11,611 13,930

Transfer from revaluation reserve to income and expenditure account in respect

of:

Disposals - (2,150)

Depreciation on inherited assets (158) (169)





At 31 July 2009 11,453 11,611









38

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

19 Movement on general reserves

Restated

2009 2008

£’000 £’000

Income and Expenditure account reserve

At 1 August as previously stated 18,568 -

Prior year adjustment (note 28) (178) -



At 1 August as restated 18,390 4,401



(Deficit)/surplus on continuing operations after depreciation of assets at (662) 15,754

valuation and tax

Transfer from revaluation reserve to income and expenditure account 158 2,319

Actuarial loss in respect of pension scheme (4,208) (3,972)

Actuarial gain/(loss) in respect of enhanced pensions 32 (112)





At 31 July 13,710 18,390



Balance represented by:

Pension reserve (note 23) (9,421) (5,174)

Income and expenditure reserve excluding pension reserve 23,131 23,564





At 31 July 13,710 18,390







20 Reconciliation of operating surplus to net cash inflow from operating activities

Restated

2009 2008

£’000 £’000

(Deficit)/surplus on continuing operations after depreciation of assets at (662) 15,754

valuation and tax

Depreciation (note 12) 1,932 1,975

Deferred capital grants released to income (notes 2 and 5) (932) (990)

(Profit)/loss on disposal of tangible fixed assets - (15,323)

Interest receivable (note 6) (188) (598)

FRS17 Pension Cost less contributions payable (186) 189

Pension Finance Income 257 (141)

Interest payable (note 10) 143 77

Decrease in stocks 4 1

(Increase)/decrease in debtors (1,222) 186

Increase in creditors 803 305





Net cash (outflow)/inflow from operating activities (51) 1,435









39

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)





21 Analysis of changes in net funds

At At

1 August Other 31 July

2008 Cash flows Changes 2009

£’000 £’000 £’000 £’000

Cash at bank and in hand 10,832 (9,286) - 1,546

Overdrafts - - - -







10,832 (9,286) - 1,546

Debt due within 1 year - (46) - (46)

Debt due after 1 year - (5,280) - (5,280)





Total 10,832 (14,612) - (3,780)









22 Analysis of cash flows for headings netted in the cash flow statement

Restated

2009 2008

£’000 £’000

Returns on investments and servicing of finance

Interest received 188 598

Interest paid (143) (77)







Net cash inflow from returns on investments and servicing of finance 45 521





Capital expenditure and financial investment

Purchase of tangible fixed assets (16,710) (7,953)

Sales of tangible fixed assets - 18,000

Deferred grants received 2,104 358





Net cash (outflow)/inflow for capital expenditure and financial investment (14,606) 10,405







Financing

2009 2008

£’000 £’000



New unsecured loans 5,326 -

Repayments of amounts borrowed - (2,361)







Net cash inflow/(outflow) from financing 5,326 (2,361)









40

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)



23 Pensions and similar obligations



The College's employees belong to two principal pension schemes, the Teachers' Pension Scheme England and

Wales (TPS) for academic and related staff; and the Local Government Pension Scheme (LGPS) for non teaching

staff which is managed by Cambridgeshire County Council. Both are defined-benefit schemes.



Total pension cost for the year 2009 2008

£000 £000



Teachers Pension Scheme: contributions paid 1,158 1,105

Local Government Pension Scheme:

Contributions Paid 1,087 917

FRS 17 Charge (111) 258

Charge to the Income and Expenditure Account (staff costs) 976 1,175

Enhanced Pension charge to Income and Expenditure Account (staff 72 69

costs)

Total Pension Cost for Year 2,206 2,349



The pension costs are assessed in accordance with the advice of independent qualified actuaries. The latest actuarial

valuation of the TPS was 31 March 2004 and of the LGPS 31 March 2007



Contributions amounting to £137,000 (2008: £116,000) were payable to the scheme at 31 st July and are included

within creditors.



Teachers’ Pension Scheme

The Teachers’ Pension Scheme is an unfunded defined benefit scheme. Contributions on a pay as you go basis are

credited to the Exchequer under arrangements governed by the Superannuation Act 1972. A notional asset value is

ascribed to the scheme for the purpose of determining contribution rates.



The pensions cost is normally assessed no less than every four years in accordance with the advice of the

Government Actuary. The assumptions and other data that have the most significant effect on the determination of

the contribution levels are as follows:



Latest actuarial valuations 31 March 2004

Actuarial method Project Benefits

Investment returns per annum 6.5%

Salary scale increases per annum 5.0%

Market value of assets at date of last valuation £162,650m



Proportion of members’ accrued benefits covered by the notional value of the assets 98.88%



Following the implementation of Teachers’ Pensions (Employers’ Supplementary Contributions) Regulations 2000,

the government actuary carried out a further review on the level of employers’ contributions. For the period from 1

August 2007 to 31 July 2008 the employer contribution was 14.1% and the employee contribution was 6.4%. An

appropriate provision in respect of unfunded pensioners’ benefits is included in provisions.



FRS 17

Under the definitions set out in Financial Reporting Standard 17 Retirement Benefits, the TPS is a multi-employer

pension scheme. The College is unable to identify its share of the underlying assets and liabilities of the scheme.

Accordingly, the College has taken advantage of the exemption in FRS 17 and has accounted for its contributions to

the scheme as if it were a defined contribution scheme. The College has set out above the information available on

the deficit in the scheme and the implications for the College in terms of the anticipated contribution rates.







41

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

23 Pensions and similar obligations (continued)



Local Government Pension Scheme



The LGPS is a funded defined benefit scheme, with the assets held in separate trustee administered funds. The total

contribution made for the year ended 31 July 2009 was £1,559,000 of which employer’s contributions totalled

£1,074,000, and employees’ contributions totalled £485,000. The employer contribution rate for the period from 1

August 2008 to 31 March 2009 was 14.4%, and this increased to 14.5% for the period from 1 April 2009 to 31 July

2009. The employee rate for the period from 1st August 2008 to 31 July 2009 was a variable rate based on

individual salaries.



FRS 17



Principal Actuarial Assumptions.



31 July 2009 31 July 2008

Price increases 3.7% 3.8%

Rate of increase in salaries 5.2% 5.3%

Rate of increase in pensions 3.7% 3.8%

Discount rate for liabilities 6.0% 6.7%



The current mortality assumptions include sufficient allowance for future improvements in mortality rates.

The assumed life expectations on retirement age of 65 are:



31 July 2009 30 July 2008

Retiring today

Males 19.6 19.6

Females 22.5 22.5

Retiring in 20 years

Males 20.7 20.7

Females 23.6 23.6



The Colleges assets and liabilities in the scheme and the expected rates of return were



2009 2008

Long term rate Value at Long term Value at

of return 31 July 2009 rate of return 31 July 2008

expected at expected at

31 July 2009 £’000 31 July 2007 £’000

Equities 7.3% 9,214 7.8% 8,413

Bonds 5.3% 2,048 5.7% 1,685

Property 5.3% 896 5.7% 1,371

Cash 4.3% 640 4.8% 694



Total market value of assets 12,798 12,163









42

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

23 Pensions and similar obligations (continued)





2009 2008

£’000 £’000



Total market value of assets 12,798 12,163

Present value of scheme liabilities (21,091) (16,184)

Present value of unfunded liabilities (30) (18)



Deficit in the scheme (8,323) (4,039)









Analysis of amount charged to income and expenditure account 2009 2008

£’000 £’000



Employer service cost (net of employee contributions) 976 974

Past Service Cost - 201



Total operating charge 976 1,175





Analysis of pension finance (costs)/income



Expected return on pension scheme assets 935 1,049

Interest on pension liabilities (1,125) (844)



Pension finance (costs)/income of FRS 17 (190) 205



Enhanced pension net costs (67) (64)



Total Pension finance (costs)/income (257) 141







Amount recognised in the statement of total recognised gains and losses



Actual return less expected return on pension scheme assets (1,611) (3,831)

Experience gains and losses arising on the scheme liabilities (2,597) (141)



Actuarial loss recognised in STRGL (4,208) (3,972)









43

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

23 Pensions and similar obligations (continued)



Movement in Deficit during year 2009 2008

£’000 £’000



Deficit in scheme at 1 August (4,039) (14)

Movement in year:

Current employer service charge (976) (1,175)

Employer Contributions 1,087 917

Contributions in respect of unfunded benefits 3 -

Net (interest)/return on assets (190) 205

Actuarial loss (4,208) (3,972)



Deficit in scheme at 31 July (8,323) (4,039)







Asset and Liability Reconciliation



Reconciliation of Liabilities 2009 2008

£’000 £’000



Liabilities at start of period 16,202 13,910

Service cost 976 974

Interest Cost 1,125 844

Employee contributions 484 398

Actuarial gain/loss 2,597 141

Benefits paid (263) (266)

Past Service cost - 201



Liabilities at end of period 21,121 16,202









Reconciliation of Assets 2009 2008

£’000 £’000



Assets at start of period 12,163 13,896

Expected return on assets 935 1,049

Actuarial loss (1,611) (3,831)

Employer contributions 1,087 917

Employee contributions 484 398

Contributions in respect of unfunded benefits 3 -

Benefits paid (263) (266)





Assets at end of period 12,798 12,163



The estimated value of employers contributions for the year ended 31 st July 2010 is £1,163,000









44

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

23 Pensions and similar obligations (continued)



History of experience gains and losses 2009 2008 2007 2006 2005

£’000 £’000 £’000 £’000 £’000

Difference between the expected and actual return on assets:

Amount (1,611) (3,831) 608 552 1,203

% of scheme assets (12.59%) (31.5%) 4.4% 4.8% 12.7%



Experience gains and losses on scheme liabilities

Amount (12) (843) (1) 2 299

% of scheme liabilities (0.05%) (5.2%) 0.0% 0.0% 2.7%



Total amounts recognised in statement of total recognised

gains and losses

Amount (4,208) (3,972) 1,910 (4) 9

% of scheme liabilities (19.92%) (24.5%) 13.7% 0.0% 0.1%





FRS 17 Enhanced Pensions 2009 2008

£’000 £’000



Deficit in scheme at 1 August as restated (1,135) (1,028)

Movement in year:

Employer Contributions 72 69

Net interest (67) (64)

Actuarial gain/(loss) 32 (112)





Deficit in scheme at 31 July (1,098) (1,135)







The enhanced pension provision relates to the cost of staff who have already left the College’s employment and

commitments for reorganisation costs from which the College cannot reasonably withdraw at the balance sheet date.

This provision has been recalculated in accordance with the LSC circular 05/02.



The principal assumptions for this calculation are:



2009 2008



Price inflation 3.02% 3.92%

Discount rate 3.80% 4.87%







Total 2009 2008

£’000 £’000



FRS 17 deficit in LGPS scheme (8,323) (4,039)

FRS 17 deficit in enhanced pension scheme (1,098) (1,135)





Net deficit in scheme at 31 July (9,421) (5,174)







45

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

24 Capital commitments

2009 2008

£’000 £’000



Commitments contracted for at 31 July 194 15,791





25 Financial commitments



At 31 July, the College had annual commitments under non-cancellable operating leases as follows:



2009 2008

Land and Other Land and Other

buildings Buildings

£’000 £’000 £’000 £’000



Expiring within one year - 105 - 5

Expiring between two and five years 83 340 71 292

inclusive

Expiring in over five years - - - -





83 445 71 297







26 Related Party Transactions



Due to the nature of the College’s operations and the composition of the Board of Governors (being drawn from

local public and private sector organisations) it is inevitable that transactions will take place with organisations in

which a member of the Board of Governors may have an interest. All transactions involving organisations in which

a member of the Board of Governors may have an interest are conducted at arms length and in accordance with the

College’s financial regulations and normal procurement procedures. No transactions were identified which should

be disclosed under Financial Reporting Standard 8 ‘Related Party Disclosures’.



27 Amounts disbursed as agent

2009 2008

£’000 £’000

Learning Support Funds

LSC grants – hardship funds 124 109

LSC grants – childcare 69 47

LSC grants – Discretionary ESOL 39 93

Interest earned - 1





232 250



Disbursed to students (228) (231)

Administration charge (12) (12)



Balance over/under spent at 31 July (8) 7









LSC grants are available solely for students; the College acts as paying agent. The grants and related disbursements

have therefore been excluded from the income and expenditure account.



46

Cambridge Regional College

Members’ report and financial statements

For the year ended 31 July 2009









Notes to the accounts (continued)

28 Prior Year Adjustment

In 2007/08 the College disposed of property at the Newmarket Road site and realised a surplus on this disposal of

£15,501,000. During the year the College identified an additional loss on fixed assets as part of this disposal of

£178,000. As the loss on disposal related to the disposal of Newmarket Road in the prior year the loss has been

accounted for as a prior year adjustment, and the comparative (2007/08) figures in the financial statements have

been adjusted.









47