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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

Index

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