Financial Statements to 31 July 2008 - Perth College - UHI ...

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Perth College intends to continue to seek external sources of funding to support this development and is beginning with the building of student residences due to be operational in June 2010. Ongoing developments in research and research capacity building also need to attract funds and develop financially self sustaining strategies. New research activity in the areas of mental health, rural childhood and entrepreneurship are all planned for 2009 and 2010. The College will continue to implement an ongoing programme of improvement and maintenance of the physical estate and investment in ICT provision. Resources Tangible resources include the main College site consisting of three major buildings, two outreach centres and the nursery. Financial The College has £18.8 million of net assets (after incorporating the £2.1 million pension liability) and no long term debt. People The College employs 345 people (expressed as full time equivalents), of whom 136 are teaching staff. Reputation The College has a good reputation locally, nationally and internationally. Maintaining a quality brand is essential for the College's success in attracting students and developing and maintaining external relationships. Principal Risks and Uncertainties The College's Board of Management is ultimately responsible for the College's system of internal control and for reviewing its effectiveness. Such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss. The senior management team monitors key performance and risk indicators and considers possible control issues brought to their attention by early warning mechanisms which are embedded within the operational units and reinforced by risk awareness in operational planning. The senior management team and the Audit Committee also receive regular reports from internal audit and health, safety and environmental monitoring functions which include recommendations for improvement. The internal audit service concentrates on areas of key activities determined by a risk analysis and in accordance with the annual internal audit plan approved and amended by the Audit Committee. The internal auditors have direct access to the Chair of the Audit Committee and issue an annual report with an opinion of the adequacy, reliability and effectiveness of the College's internal control system. The Audit Committee consider risk at each Committee Meeting and receive action log updates from management in relation to all significant risks. 6
Perth College The Board of Management receive reports thereon from the Audit Committee, the emphasis being on obtaining the relevant degree of assurance and not merely reporting by exception. The Board of Management is of a view that there is an ongoing process for identifying, evaluating and managing the College's significant risks that has been in place throughout the year ended 31 July 2008 and up to the date of approval of the annual report and accounts. This process is regularly reviewed by the Board of Management and accords with the Turnbull guidance on internal control, as applicable to the further education sector. Outlined below is a description of the principal risk factors that may affect the College. Not all 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 SFC and UHI. In 2007-08, 55% of the College's revenue was ultimately public funded and this level of requirement is expected to continue. There 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. 2 Maintain Adequate Funding for Pension Liabilities The financial statements report the share of the Tayside Superannuation Scheme for support staff on the Colleges balance sheet in line with the requirements of FRS 17. In addition, the financial statements report the provision made for pension costs arising from past early retirements in line with the valuation carried out by an independent firm of actuaries. 3 Overseas Students Our overseas student population is looked after by our experienced and dedicated international centre. The strategic and operational risks associated with overseas students are actively monitored by the international team. The College has built up a network of overseas agents which is being supplemented by a growing number of partnerships of well established educational establishments abroad. The Colleges subsidiary company, Air Service Training (Engineering) Limited, which celebrates its 75th anniversary in 2008-09, is acknowledged worldwide as a leading provider of aeronautical engineering. Stakeholder Relationship In line with other colleges and universities, Perth College has many stakeholders. These include: • Students and alumni. 7
Page 1: Financial Statements for the Year E
Page 4 and 5: Perth College
Page 6 and 7: Perth College The Board monitors th
Page 8 and 9: Perth College accumulate reserves a
Page 12 and 13: Perth College • Funding Council.
Page 14 and 15: Perth College Professional Advisers
Page 16 and 17: Perth College Ritchie Rennie Nathan
Page 18 and 19: Perth College The Audit Committee a
Page 20 and 21: Perth College Review of Effectivene
Page 22 and 23: Perth College Approved by order of
Page 24 and 25: Perth College • funds from whatev
Page 26 and 27: Perth College Consolidated Income a
Page 28 and 29: Perth College Balance Sheets as at
Page 30 and 31: Perth College Notes to the Accounts

Financial Statements to 31 July 2008 - Perth College - UHI ...

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