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2022-07-31-accounts

Sarah Lawrence at Oxford

(A company limited by guarantee) Company Number: 05679963 Charity Number: 1114590

Unaudited Financial Statements

for the year ended

31st July 2022

Wenn Townsend

Chartered Accountants

Oxford

Sarah Lawrence at Oxford

Reference and Administrative Details

Trustees: C Collins Judd
B Parker
P Samuel
K Singh
Program Director: G Southcombe
Registered Office: Wadham College
Parks Road
Oxford
OX1 3PN
Company Number: 05679963
Charity Number: 1114590
Bankers: Lloyds TSB plc
Witney
Oxfordshire
Auditors: Wenn Townsend
30 St Giles’
Oxford

Sarah Lawrence at Oxford

Report of the Trustees for the year ended 31st July 2022

Foreword

The Trustees of Sarah Lawrence at Oxford, who are also the directors of the charity for the purposes of the Companies Act, present their annual report together with the financial statements for the charity for the year ended 31st July 2022.

The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

Structure, Governance and Management

Governing Document

Sarah Lawrence at Oxford is a company limited by guarantee governed by its Memorandum and Articles of Association. It is registered as a charity with the Charity Commission.

Trustees

The names of the Trustees during the year ended 31st July 2022, together with changes subsequent to that date are as follows:-

C Collins Judd B Parker P Samuel K Singh

Trustee Induction and Training

Trustees are briefed on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the charity.

Organisation

The Trustees have delegated the day to day running of the Programme to the Programme Director.

Related Parties

The funding for the Sarah Lawrence at Oxford Programme comes from Sarah Lawrence College, in Bronxville, New York, US.

Once it has been decided to admit a student to Sarah Lawrence College, the policy is to offer financial aid to any student who demonstrates financial need and to try to fund those students as fully as possible toward enabling them to study at Sarah Lawrence College.

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Sarah Lawrence at Oxford

Report of the Trustees (continued) for the year ended 31st July 2022

Objectives and Activities for the Public Benefit

The Object of the Charity as per the governing document is:-

The charity aims to support a number of students from Sarah Lawrence College, New York, and other institutions of higher education, as fully recognised Visiting Students of the University of Oxford, via its affiliation with Wadham College. This is achieved by providing programme participants with:-

The Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties.

Achievements and Performance

17 students from Sarah Lawrence College, 2 from Pitzer College, 1 from Colby College and 2 from Zhejiang University in China studied at Oxford University and Wadham College, as fully recognised Visiting Students. Both students from China studied remotely, 1 for a single term. All other students studied in-person for an entire year. The students achieved considerable academic success.

Financial Review

The results for the year are shown in the income and expenditure account on page 4. Unrestricted free reserves at the year end were in deficit by £50,342 (2021: in surplus by £2,684), due to the provision required for the pension scheme noted below. The trustees feel that the charity does not need to hold a targeted level of reserves, as funding for each year is provided by Sarah Lawrence College in the U.S.

Due to updated guidance in 2016 from the USS pension scheme about its pension deficit, and in accordance with the FRS 102 SORP, the charity continues to record a liability based on estimates of future personnel wages and other future conditions. This liability is subject to change with each actuarial valuation and is payable over the next 16 years as a percentage of wages. Full details are in note 13.

Plans for Future Periods

The charity aims to continue with its existing operations as required by Sarah Lawrence College. 25 students plan to start studying at Oxford in the Autumn.

This report has been prepared having taken advantage of the small companies’ exemption in the Companies Act 2006.

Signed on behalf of the Trustees

P Samuel Trustee Sarah Lawrence at Oxford

12th September 2022

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Independent Examiner's Report to the Trustees of Sarah Lawrence at Oxford

I report to the charity trustees on my examination of the accounts of the company for the year ended 31st July 2022 which are set out on page 4 to 13.

Responsibilities and basis of report

As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the ICAEW, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Benjamin Hayes FCA For and on behalf of Wenn Townsend Chartered Accountants Oxford

12th September 2022

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Sarah Lawrence at Oxford

Statement of Financial Activities (including income and expenditure account) for the year ended 31st July 2022

Note
Income from:
Charitable activities
2
Total income
Expenditure on:
Charitable activities
3
Pension deficit contribution liability movement
13
Total expenditure
Net expenditure
Fund balances brought forward
at 1st August 2021

Fund balances carried forward
at 31st July 2022
£
Total Unrestricted Funds
2022
2021
790,000
750,000
_
_
790,000
750,000
_
_
789,026
755,561
54,000
(2,000)
_
_
843,026
753,561
_
_
(53,026)
(3,561)
2,684
6,245
_
_
(50,342)
£ 2,684
═════
═════

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised during the year.

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Sarah Lawrence at Oxford

Balance Sheet 31st July 2022

Note 2022 2021
Current Assets
Debtors 9 328 -
Cash at bank and in hand 47,900 54,677
───── ─────
48,228 54,677
Creditors: Amounts falling due
within one year 10 (10,570) (17,993)
───── ─────
Net Current Assets 37,658 36,684
───── ─────
Net Assets excluding Pension Liability 37,658 36,684
Defined Benefit Pension Liability 13 (88,000) (34,000)
───── ─────
Net Liabilities £ (50,342) £ 2,684
═════ ═════
Funds
Unrestricted funds 37,658 36,684
Pension reserve (88,000) (34,000)
───── ─────
Total Funds £ (50,342) £ 2,684
═════ ═════

For the year ending 31st July 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors’ responsibilities:

The accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

Approved by the Board of Trustees on 12th September 2022 and signed on its behalf by :

────────────────────

P Samuel

Director / Trustee

Company number: 05679963

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Sarah Lawrence at Oxford

Statement of Cash Flows for the year ended 31st July 2022

Reconciliation of net movement in funds to net cash flow from operating activities

2022 2021
Net expenditure for the period (53,026) (3,561)
Adjustments for:
Increase in debtors (328) -
(Decrease)/increase in creditors (7,423) 5,894
Increase/(decrease) in pension liability 54,000 (2,000)
_ _
Net cash provided by operating activities (6,777) 333
_ _
Change in cash and cash equivalents in the reporting period (6,777) 54,344
Cash and cash equivalents at the beginning of the reporting period 54,677 333
_ _
Cash and cash equivalents at the end of the reporting period £ 47,900 £ 54,677
═════ ═════

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Sarah Lawrence at Oxford

Notes to the Accounts for the year ended 31st July 2022

1 Summary of significant accounting policies

General information and basis of preparation

Sarah Lawrence at Oxford is a charitable company limited by guarantee in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the charity information in these financial statements. The nature of the charity’s operations and principal activities are detailed in the Trustees’ Report.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and have not been designated for other purposes.

Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Resources expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes costs that can be allocated directly to such activities, and those costs of an indirect nature necessary to support them.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

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Sarah Lawrence at Oxford

Notes to the Accounts (continued) for the year ended 31st July 2022

1 Summary of significant accounting policies (continued)

Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management. The analysis of these costs is included in note 4.

Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The charity participates in the Universities Superannuation Scheme (the scheme). The scheme is a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the scheme’s assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The charity is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, the charity therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period. Since the charity has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the charity recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense is recognised in the income and expenditure account.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. There is no indication that the support and funding from Sarah Lawrence College will be withdrawn, and therefore the budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Critical accounting judgements

FRS 102 makes the distinction between a Group Plan and a multi-employer scheme. A Group Plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as that provided by USS. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense is recognised in profit or loss in accordance with section 28 of FRS 102. The trustees are satisfied that the scheme provided by USS meets the definition of a multiemployer scheme and has therefore recognised the discounted fair value of the contractual contributions under the funding plan in existence at the date of approving the financial statements.

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Sarah Lawrence at Oxford

Notes to the Accounts (continued) for the year ended 31st July 2022

1 Summary of significant accounting policies (continued)

Key sources of estimation uncertainty

Pension scheme liability

The trustees are required to make assumptions on future staffing levels when calculating the USS pension scheme liability. These are included as best estimates at the date of calculation, but present a significant risk in potentially causing a material adjustment to the balance sheet.

2 Incoming resources

The income of the charity comprises funds transferred from the Sarah Lawrence College at Bronxville, New York, to finance the operations of the Oxford programme.

3 Total resources expended

Total resources expended
Basis of
Allocation
Charitable expenditure
Programme costs:
University and college fees
Direct
Academic activities
Direct
Hardship fund awards
Direct
Salaries
Time
Support costs
Usage
£
Housing costs:
Rent
Direct
Maintenance
Direct
Salaries
Time
Support costs
Usage
£
Governance costs:
Salaries
Time
Examination fees
Direct
Support costs
Usage

Total resources expended
£
Staff
Other Support
Total
Total
Costs
Costs
Costs
2022
2021
-
373,690
-
373,690 358,910
-
18,987
-
18,987
7,882
-
9,414
-
9,414
6,650
176,558
-
-
176,558 179,110
-
-
21,990
21,990
21,119
176,558
402,091
21,990
600,639 573,671
- 167,409
-
167,409 159,362
-
1,284
-
1,284
936
8,753
-
-
8,753
8,884
-
-
2,587
2,587
2,481
8,753 168,693
2,587
180,033 171,663
4,600
-
-
4,600
6,691
-
2,460
-
2,460
2,300
-
-
1,294
1,294
1,236
4,600
2,460
1,294
8,354
10,227
189,911 573,244
25,871
789,026 755,561

Total resources expended

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Sarah Lawrence at Oxford

Notes to the Accounts (continued) for the period ended 31st July 2022

4 Allocation of support costs

Charitable - Charitable - Charitable - Governance Total Total
Programme Housing Costs 2022 2021
85% 10% 5%
Rent of office 8,538 1,004 503 10,045 9,405
Postage, stationery and telephone 314 37 18 369 366
Equipment 101 12 6 119 919
Travel and subsistence 907 107 53 1,067 283
Sundry items 346 41 20 407 501
Payroll management costs 5,361 631 315 6,307 6,170
Bookkeeping fees 6,423 755 379 7,557 7,192
£ 21,990 2,587 1,294 25,871 24,836

5 Staff costs and numbers

Staff costs and numbers
2022 2021
Gross 139,213 144,685
Employer’s NI 5,241 5,853
Employer’s pension contributions 18,220 17,685
Recharge 27,237 26,462
───── ─────
£ 189,911 £ 194,685
═════ ═════
Number of full time employees: 2 2
══ ══
Number of part-time tutors per term: 41 39
══ ══

One employee received total employee benefits (excluding employer pension costs) of over £60,000 during the current year (2021: one).

6 Trustees’ and key management personnel remuneration and expenses

The Trustees neither received nor waived any remuneration during the year (2021: £Nil).

The total amount of employee benefits (including employer pension costs) received by key management personnel is £92,008 (2021: £89,960). The Trust considers its key management personnel comprise the Trustees and the Programme Director.

The Trustees did not have any expenses reimbursed during the year (2021: £Nil).

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Sarah Lawrence at Oxford

Notes to the Accounts (continued) for the year ended 31st July 2022

7 Net resources expended

Net resources expended
2022 2021
Net resources expended are stated after charging:
Examiner’s remuneration - examination work £ 2,460 £
2,300
- other work £ 13,864 £ 13,362
═════ ═════

8 Taxation

As an Educational Charity the Company is exempt from United Kingdom income tax and corporation tax, as it falls within the various exemptions available to registered charities.

9 Debtors: amounts falling due within one year

2022 2021
Trade debtors £ 328 £ -
═════ ═════
10 Creditors:amounts falling due within one year
2022 2021
Trade creditors - 11,248
Accruals and deferred income 8,744 4,895
Taxation and social security 1,826 1,850
───── ─────
£ 10,570 £ 17,993
═════ ═════

11 Leases

At 31st July 2022 total future minimum lease payments under non-cancellable operating leases were as follows:

follows:
Land and buildings
2022 2021
Due within one year £ 256,136 £ 194,195
═════ ═════

12 Related party transactions

Aside from the funding received from Sarah Lawrence College detailed in note 2, there were no other related party transactions during the year (2021: £Nil).

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Sarah Lawrence at Oxford

Notes to the Accounts (continued) for the year ended 31st July 2022

13 Pension commitments

The charity participates in the Universities Superannuation Scheme (USS). The assets of the scheme are held in separate trustee-administered funds, and it is a contributory mixed benefit scheme (i.e. it provides benefits on a defined benefit basis – based on length of service and pensionable salary – and on a defined contribution basis – based on contributions into the scheme). It is a multi-employer scheme and the charity is unable to identify its share of the underlying assets and liabilities relating to defined benefits of the scheme on a consistent and reasonable basis. Therefore, in accordance with the accounting standard FRS 102 paragraph 28.11, the charity accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the Income and Expenditure Account represents the contributions payable to the scheme in respect of the accounting period. In the event of the withdrawal of any of the participating employers in USS, the amount of any pension funding shortfall (which cannot be otherwise recovered) in respect of that employer will be spread across the remaining participating employers and reflected in the next actuarial valuation of the scheme.

Actuarial valuations

Qualified actuaries periodically value USS defined benefits using the ‘projected unit method’, embracing a market value approach. The resulting levels of contribution take account of actuarial surpluses or deficits in each scheme. The financial assumptions were derived from market conditions prevailing at the valuation date. The results of the latest actuarial valuations and the assumptions which have the most significant effect on the results were:

Valuation Details Valuation Details USS
Date of valuation: 31/03/20
Date valuation results published: 30/09/21
Value of liabilities: £80.6bn
Value of assets: £66.5bn
Funding surplus / (deficit): (£14.1bn)
Principal assumptions: USS
Discount rate
Fixed Interest
Rate of increase in salaries gilt yield curve
Rate of increase in pensions plus 1% -
2.75%
n/a
CPI+0.05%b
Assumed life expectancies on retirement at age 65:
Males currently aged 65 23.9 yrs
Females currently aged 65 25.5 yrs
Males currently aged 45 25.9 yrs
Females currently aged 45 27.3 yrs
Funding Ratios:
Technical provisions basis 83%
Statutory Pension Protection Fund basis 64%
‘Buy-out’ basis 51%
Employer contribution rate (as % of pensionable salaries): 21.1% to 21.4
from 1 Oct 21%
Effective date of next valuation: 31/03/23

a. The discount rate (forward rates) for the USS valuation was:

Fixed interest gilt yield curve plus: Pre-retirement 2.75%, post-retirement 1.00%.

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Sarah Lawrence at Oxford

Notes to the Accounts (continued) for the year ended 31st July 2022

13 Pension commitments (continued)

Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves, less 1.1% p.a. to 2030, reducing linearly by 0.1% p.a. to a long term difference of 0.1% p.a. from 2040.

Sensitivity of actuarial valuation assumptions

Surpluses or deficits which arise at future valuations may impact on the company’s future contribution commitment. The sensitivities regarding the principal assumptions used to measure the scheme liabilities are set out below:

USS
Assumption Change in assumption Impact on USS liabilities
Initial pre-retirement discount rate increase by 0.25% decrease by £1.3bn
Post-retirement discount rate Decrease by 0.25% increase by £2.8bn
CPI decrease by 0.1% decrease by £1.5bn
Life expectancy more prudent assumption (reduce the increase by £1.2bn
adjustment to the base mortality table by 5%)
Rate of mortality more prudent assumption (increase the annual increase by £0.6bn
mortality improvements long-term rates by
0.2%

Deficit recovery plans

In line with FRS 102 paragraph 28.11A, the charity has recognised a liability for the contributions payable for the agreed deficit funding plan. The principle assumptions used in these calculations are tabled below:

USS
Finish Date for Deficit Recovery Plan 31/03/38
Average staff number increase Nil
Average staff salary increase 1.5%
Average discount rate over period 1.0%

A provision of £88,000 has been made at 31st July 2022 (2021: £34,000) for the present value of the estimated future deficit funding element of the contributions payable under these agreements, using the assumptions shown. The provision reduces as the deficit is paid off according to the pension recovery scheme.

The next formal actuarial valuation is due as at 31st March 2023.

Pension charge for the year

The pension charge for the year includes a debit of £54,000 (2021: a credit of £2,000) in relation to the USS. This represents contributions of £18,220 (2021: £17,685) payable in the year, as adjusted by the change in the deficit funding liability of £54,000 (2021: £(2,000)).

A copy of the full actuarial valuation report and other further details on the scheme are available on the USS website.

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