Back to C13031

Version 1.0 Produced 2014-07-30

1. Table 3 is a re-statement of the consolidated balance sheet in the financial statements, with some additional detail.
2. Entries are required for Heads 1 to 4, 7, 8, 10, 12, 13 and 14.
3. The main heads of Table 3 must be identical to the higher education provider's (HEP's) audited/published financial statements.
4. Head 1a Intangible assets should be used to accommodate capitalised Intellectual Property (IP). Tangible assets, Investments, Investment in joint ventures: share of gross assets and Investment in joint ventures: share of gross liabilities are Sub-heads 1b, c and d respectively and should be completed in line with the SORP (2007) and published accounts.
5. Entries under Heads 4 (a, b and c) and 7 (a, b and c) relating to creditors will often require data that are likely to be disclosed in the relevant notes to the financial statements.
6. Short-term deposits that are not convertible to cash within 24 hours should be included as investments under Head 3c. Short-term deposits that are convertible to cash within 24 hours should be included as cash under Head 3d.
7. Head 7a should include the balances payable after more than one year on inherited liabilities and grants reimbursable to the Funding Councils. Head 7b should include the balances payable after more than one year on loans and finance leases.
8. The following text from the SORP explains the types of endowments identified in Head 13 (Endowments):

Expendable endowment funds

Where charitable donations are restricted (specific) to a particular objective specified by the donor, and the governing body, as trustees, has the power of discretion to convert the endowed capital into income, then this type of charitable fund will be an expendable endowment fund.

Permanent endowment funds

These are endowments which the governing body, as trustees, are required to maintain permanently the capital of the endowment fund. Where an endowment is permanent this will be indicated by the wishes of the donor. This type of endowment fund  cannot be spent as though it were income.

However, certain payments must be made out of the endowment fund, such as the payment of investment management fees where these relate to investments held within the endowment fund. Where assets held in a permanent endowment fund are exchanged, their place in the fund must be taken by the assets received in exchange. "Exchange" here may simply mean a change of investment, but it may also mean, for example, the application of the proceeds of sale of freehold land and buildings in the purchase or improvement of freehold property. Operational assets, because they are used over time for the general purposes of the institution, cannot be classified as endowment assets.

9. The previous year's restated figures must be included for comparative purposes. Direct entries are required.

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