NOTES TO THE ACCOUNTS
NOTE 29 – ANALYSIS OF CHANGES IN NET DEBT
Cash in hand and at bank Overdrafts
At 1 August 2010 £’000
Cash Flows £’000
At 31 July 2011 £’000
31,102
(11,397)
19,705
265
–
(11,132)
19,705
(265) 30,837
Debt due within one year Debt due after one year Current asset investments
(8)
(1)
(9)
(92,718)
(9,991)
(102,709)
24,138
2,311
26,449
(37,751)
(18,813)
(56,564)
NOTE 30 – PENSION SCHEMES The two principal schemes for the University’s staff are the national Universities Superannuation Scheme (USS) and the University of Exeter Retirement Benefits Scheme (ERBS), which are externally invested defined benefit (final salary) schemes, contracted out of the State Second Pension. The assets of the schemes are held in separate trustee-administered funds. The University also makes contributions to the National Health Superannuation Scheme (NHSS) in respect of a small number of staff at its Department of Sport and Health Sciences and the Peninsula College of Medicine and Dentistry. The latest finalised actuarial valuation for USS was at 31 March 2008 and for ERBS was 6 April 2009. The pension costs for both schemes are assessed using the projected unit method. The assumptions that have the most significant effect on the result of the valuations are those relating to the rate of return on investments (i.e. the valuation rate of interest) and the rates of increase in salary and pensions. In relation to the past service liabilities the financial assumptions were derived from market yields prevailing at the valuation date. (i) Universities Superannuation Scheme (USS) The University participates in the Universities Superannuation Scheme, a defined benefit scheme which is contracted out of the State Second Pension. The assets of the Scheme are held in a separate fund administered by the trustee, Universities Superannuation Scheme Limited. Because of the mutual nature of the Scheme, the Scheme’s assets are not hypothecated to individual institutions and a scheme-wide contribution rate is set. The University is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the Scheme on a consistent and reasonable basis and therefore, as required by FRS 17 ‘Retirement benefits’, accounts for the Scheme as if it were a defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the Scheme in respect of the accounting period. The latest triennial actuarial valuation of the scheme was at 3 March 2008 and was carried out using the projected unit method. To calculate the technical provisions, it was assumed that the valuation rate of interest would be 6.4% per annum, salary increases would be 4.3% per annum (plus an additional allowance for increases in salaries due to age and promotion reflecting historic Scheme experience, with a further cautionary reserve on top for past service liabilities) and pensions would increase by 3.3% per annum.
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UNIVERSITY OF EXETER:
F I N A N C I A L S TAT E M E N T S F O R T H E Y E A R E N D E D 3 1 J U LY 2 0 1 1