MIDDLESEX UNIVERSITY – NOTES TO THE ACCOUNTS (continued)
Year ended 31 July 2021
D Income Recognition
Income from the sale of goods or services is credited to the consolidated statement of comprehensive income when the goods or services are supplied to the external customers or the terms of the contract have been satisfied.
Tuition Fee income chargeable to students or their sponsors is stated gross of any expenditure which is not a discount and credited to the consolidated statement of comprehensive income over the period in which the students are studying. Where the amount of the tuition fee is reduced, by a discount for prompt payment, income receivable is shown net of the discount. Bursaries, scholarships or fees waived by the University are accounted for gross as expenditure and not deducted from income.
Investment income is credited to the consolidated statement of comprehensive income on a receivable basis.
Grant funding including funding body block grant and research grants from government sources and from non-government sources are recognised as income when the University is entitled to the income and performance related conditions have been met. Income received in advance of performance related conditions being met is recognised as deferred income within creditors on the statement of financial position and released to income as the conditions are met.
Capital grants
Government and all other source capital grants are recognised in income when the University is entitled to the funds subject to any performance related conditions being met.
E Accounting for Charitable Donations and Endowments
Non exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised in income when the University is entitled to the funds. Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer.
Donations with no restrictions are recognised in income when the University is entitled to the funds.
Investment income and appreciation of endowments is recorded in income in the year in which it arises
and as either restricted or unrestricted income according to the terms of the restriction applied to the individual endowment fund.
There are four main types of donations and endowments identified within reserves:
1. Restricted donations – the donor has specified that the donation must be used for a particular objective.
2. Unrestricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream for the general benefit of the University.
3. Restricted expendable endowments – the donor has specified a particular objective other than the purchase or construction of tangible fixed assets, and the University has the power to use the capital.
4. Restricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream to be applied to a particular objective.
F Agency arrangements
Funds the University receives and disburses as paying agent on behalf of a funding body (or other body) are excluded from the consolidated statement of comprehensive income of the University where the University is exposed to minimal risk or enjoys minimal economic benefit related to the transaction. The balances and movement of these funds are disclosed in notes 32 to 34.
G Accounting for Retirement Benefits
The University contributes to two principal staff pension Schemes for the University’s staff, the Teachers’ Pension Scheme (TPS), independently administered by the Department for Education (DfE) and the Local Government Pension Scheme (LGPS), independently administered by the London Borough of Barnet.
The Schemes are defined benefit schemes which are externally funded and for the period up to 5 April 2016 were contracted out of the State Second Pension (S2P) when contracting-out ceased on the introduction of the government’s new state pension on 6 April 2016.
The TPS is usually subject to a full valuation every four years and the LGPS every three years by professionally qualified independent actuaries.
Both Schemes provide defined benefits to members (retirement lump sums and pensions), earned as employees worked for the University. However,
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