Financial Statements 2019/2020
MIDDLESEX UNIVERSITY NOTES TO THE ACCOUNTS (continued)
Year Ended 31 July 2020
22. PROVISIONS FOR LIABILITIES (continued) Pension enhancements on termination
A pension provision in respect of pension enhancements payable to staff who left the University during the 1990’s as part of an early retirement scheme. Currently there are 163 people (2019: 169 people) in the scheme. This provision will be utilised over the period of retirement. The provision is based upon the full actuarial valuation at 31 July 2018 by a qualified independent actuary and updated to 31 July 2020.
The assumptions used by the actuary that comply with FRS102 for calculating the provision for pension enhancements on termination at 31 July 2020 are as follows:
Financial assumptions: Discount rate for liabilities
Consumer price inflation (CPI increases) – Pension increase rate
Longevity assumptions:
Life expectancy is based on VitaCurves with improvements in line with the CMI 2018 model, an allowance for smoothing of recent mortality experience and long term rates of 1.25% per annum for males and females.
Restructuring provision The restructuring provision is an estimated liability from the agreement to offer staff voluntary redundancy or be subject to redundancy where activities have been re-organised or discontinued as a result of restructuring.
The amounts provided include the final settlement of unfunded pension costs of former staff specified in the University’s voluntary redundancy scheme and the estimated future costs of lump sum redundancy payments and unfunded pensions payable to staff who have agreed terms at 31 July 2020.
It is estimated that the provision will be fully utilised or released in the statement of comprehensive income and expenditure in 2020/21 dependent upon the agreed departure date of the relevant employees.
Onerous contract provision
The cost of an onerous contract relating to parts of the former New Southgate campus, where the cost of meeting the existing lease obligations exceed the economic benefits expected to be received under the lease. The provision represents the lease period up to 7 June 2020 when it was surrendered.
Leasehold dilapidation
The current estimated cost of dilapidations relating to Building 2 of the former New Southgate Campus in returning the property to the lessor when the lease was surrendered on 7 June 2020. It is estimated that the provision will be fully utilised or released in the statement of comprehensive income and expenditure in 2020/21 dependent upon the building works completion.
Consolidated 1.4%
2.2%
Middlesex University
117
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134
