35
City of Glasgow College Annual Report & Accounts 2020-21
Financial Responsibilities and Control
The Board must keep accounting records that disclose
the financial position of the College and ensure the
financial statements are prepared in accordance with the
Statement of Recommended Practice (2019).
In addition, the Board, through its designated office
holder, and within the terms and conditions of the
Financial Memorandum agreed with the Scottish Funding
Council (SFC), must prepare financial statements for each
financial year that give a true and fair view of the College's
state of affairs and of the surplus or deficit and cash flows
for that year. In causing the financial statements to be
prepared, the Board has ensured:
• Suitable accounting policies are selected and applied
consistently.
• Reasonable and prudent estimates and judgements
have been made.
• Applicable accounting standards have been followed,
subject to any material departures explained in the
financial statements.
• Ensure SFC funds are used only for the given
purposes and in accordance with the memorandum
with the SFC and any other conditions the SFC may
prescribe.
• Financial statements are prepared on the going
concern basis unless it is inappropriate to presume the
College will continue in operation.
• The Board is satisfied that it has adequate resources
to continue in operation for the foreseeable future.
Therefore, the going concern basis continues to be
adopted in the preparation of the financial statements.
The Board has taken reasonable steps to:
• Ensure there are appropriate financial and
management controls in place to safeguard public
funds and funds from other sources.
• Safeguard the assets of the College and prevent and
detect fraud.
• Secure the economical and effective management of
the College's resources and expenditure.
• The key elements of the College's system of internal
financial control, which is designed to discharge the
responsibilities set out above, include:
• Clear definitions of the responsibilities of, and the
authority delegated to senior managers
• A comprehensive medium and short-term planning
process, supplemented by detailed annual income,
expenditure, capital and cash-flow budgets
• Regular reviews of key performance indicators and
business risks and quarterly reviews of financial results
involving variance reporting and updates of forecast
outturns;
• Clearly defined and formalised requirements for
approval and control of expenditure, with investment
decisions involving capital or revenue expenditure
being subject to formal detailed appraisal and review
within approval levels set by the Board.
• 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.