2.10 Cash Flows
2.10.1 The cash flows project a net cash position in 2009 and 2010 of £10,391k and £11,353k
respectively.
2.10.2 The significant points to note are as follows:
a) We have been advised by College management that current cash resources as at 31
December 2009 are in the region of £11,600k.
2.11 Taxation
2.11.1 There are no significant points to note.
2.12 Pension and Pension Accounting
2.12.1 GMC accounts for the SPF scheme as a defined benefit scheme under FRS17 and the
liability of £3,586k is included in the balance sheet at 31 July 2009.
2.13 Risk Management
2.13.1 GMC, GCNS and CC will have to review the potential risk areas post merger.
2.13.2 We recommend that the areas highlighted in Section 13 of this report are considered
during the merger process.
2.14 Post Merger Financial & Operational Planning
2.14.1 The terms of reference included at Appendix 1 indicate that the following areas were to be
subject to review:
a) The financial plan for the period ending 31 July 2013 incorporating the proposed bid to
SFC for merger related funding;
b) The ICT integration plan;
c) The Risk Matrix post merger.
2.14.2 At the time of finalising this report the information in the above areas was not available.
2.14.3 We recommend that these areas are looked at in the course of the merger process. Wylie &
Bisset LLP would be happy to report on these areas as a separate exercise outwith the
original report.
Appendix 5: Due Diligence Executive Summaries
76