The £12m pension pot deficit in Scotland’s Rural College accounts was expected following the Brexit referendum, according to a letter from the SRUC CEO Wayne Powell to the Parliament’s Environment committee. MSPs on the committee raised concerns about the large deficit when the SRUC presented its finances to them in December 2017.
The SRUC has submitted further details to clarify the reason for the actuarial loss, it states that Brexit has “had an impact on bond yields”. An updated pension position will be known following the next triennial valuations, expected in early 2018.
Compliance with new accounting rules (FRS102) to the year ending 31 March 2017 meant that all buildings had to be reviewed in detail.
The £3,087 loss on disposal of fixed assets in the accounts do not therefore put a drain on the resources of SRUC and the net effect is a surplus on disposal of £900,000, the letter reads.
Since the presentation to the committee the SRUC has also appointed a finance director.
Currently working for the Digital and Health Care Institute in Strathclyde, Hugh Anderson will join SRUC in March 2018.