1. SORP Training Holiday Pay Accrual

2. What is required? Accrued holiday pay must be accounted for as a creditor. Occurs when the holiday year is not coterminous with the financial year (and if material). Restated opening balance 31 July 2014 required - total accrual of £7.8m. Annual year-end adjustment going forward (if material). Accrual calculated by the Central Management Accounts Team, based on information provided by TRAC team (academic pay) and annual leave data from EPS and ITS (PSS pay). Accrual will sit centrally under Corporate Activities.

3. Approach and Methodology Assumptions and methodology agreed with the auditors. A calculated % will be applied to pay costs - represents the percentage of holidays staff have accrued as at 31 July. 2 methodologies - Academic pay costs and PSS pay costs. Accrual will be posted to new shadow FSR codes - detail is required for FSR purposes, but accrual and costs will sit centrally. New balance sheet IE code to easily identify the holiday pay accrual from other accruals.