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72 City of Glasgow College Annual Report & Accounts 2020-21
CITY OF GLASGOW COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
12 months ended 12 months ended
FOR THE 12 MONTHS ENDED 31 JULY 2021 31 July 2021 31 July 2020
£000 £000
16 TANGIBLE FIXED ASSETS
Depreciation based on cost 4,668 8,067
Depreciation based on valuation 578 578
5,246 8,645
New Campus
Gain on sale of Asset
There was no asset sale this year (2020 £0).
The related debt is included in the balance sheet as a creditor and is repaid over a 25 year term.
The College makes monthly unitary charge payments which include the capital element of the
loan together with interest, facilities management and building lifecycle costs which are reported
in the Statement of Comprehensive Income. The Scottish Funding Council provides the College
with grants to fund the unitary charge payments with the exception of the facilities management
costs and 50% of the building lifecycle costs.
Land and buildings with a net book value of £10,004,000 have been funded from local authority
sources. These assets may not be disposed of without the prior approval of the Scottish
Funding Council (SFC) and the College would have to use the sale proceeds with the
instructions of the SFC.
If inherited land and buildings had not been valued they would have been included at £NIL
(2020: £NIL).
Included within land and buildings is £36,000 of leasehold land, the remainder is classed as
freehold land and buildings.
The College procured its new campus buildings (Riverside & City campus) using the Scottish
Futures Trust's Non-Profit Distributing (NPD) model. The buildings were handed over to the
College in August 2015 and August 2016 in time for the start of the academic sessions. The
buildings design combines an inspirational external appearance with a technologically advanced
and functional fit-out to cater for the College's broad FE and HE curricula.
The new NPD assets have been capitalised and are included as fixed assets under land and
buildings. The buildings will be depreciated over their expected useful lives of 50 years on a
straight line basis. As required by FRS102 the NPD assets are stated at fair value; they were
valued by Avison Young, Chartered Surveyors using the UKGN2 Depreciated Replacement Cost
method of valuation as at 31st July 2019.