33
City of Glasgow College Annual Report & Accounts 2019-20
• Comprehensive Financial Regulations, detailing financial
controls and procedures, approved by the Audit
Committee and Finance Committee.
The Board of Management (via the Audit Committee) has
appointed a professional Internal Audit team, whose annual
programme is approved by the Audit Committee. The
head of the Internal Audit team provides the Board with a
report on internal audit activity within the College and an
opinion on the adequacy and effectiveness of the College's
system of internal control, including internal financial control.
Any system of internal financial control can only provide
reasonable but not absolute assurance against material
misstatement or loss.
Financial Performance
For the financial year 2019-20 the College made an
underlying deficit of £0.4m - (2018-19 £1.2m surplus).The
deficit results from the impact of Covid-19 on the College's
activities. The College was forecasting a surplus before
Covid-19 hit, and took action to reduce the loss as much
as practically possible. The College continues to operate in
a challenging financial climate with the continuing impact of
Covid-19.
The College had net current liabilities of £1.6m at the year
end, mainly due to the inclusion of Non-Profit Distributing
contract liability; however, the College continues to operate
with a healthy cash balance of £9.0m at the year end.
Underlying operating position:
2019-20
£'000
2018-19
£'000
(Deficit) before other gains &
losses
(4,720) (6,576)
Add back:
Depreciation (net of deferred
capital grant release) on both
government funded and privately
funded assets including NPD
assets
6,379 5,924
Exceptional non-restructuring
costs (e.g. impairment)
0 9,350
Non-cash pension adjustment -
Net service cost
2,259 2,725
Non-cash pension adjustment -
Net interest cost
174 (1)
Non-cash pension adjustment -
Early retirement provision
248 198
Donation to Arms-Length
Foundation (ALF)
0 0
Deduct:
Non-Government capital grants
(e.g. ALF capital grant)
0 (263)
Exceptional income (if disclosed
as exceptional in accounts)
0 (5,790)
CBP allocated to loan
repayments and other capital
items
0 0
NPD income applied to reduce
NPD balance sheet debt
(4,700) (4,366)
Adjusted operating (Deficit)/
Surplus
(360) 1,201