2021-06-30-accounts

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ST JOHN’S COLLEGE CAMBRIDGE

Annual Report and Financial Statements

for the year ended 30 June 2021

Registered Charity number 1137428

	Page
Trustees’ Report	1
Reference and administrative information	1
Governance	3
Objects and aims	4
Activities, performance and future plans	5
Financial review	8
Principal risks and uncertainties	13
Responsibilities of the College Council	13
Statement of internal control	14
Outlook	15
Independent Auditor’s Report to the Governing Body of St John’s College	16
Statement of Principal Accounting Policies	19
Consolidated Statement of Comprehensive Income and Expenditure	30
Summary Consolidated Statement of Comprehensive Income and Expenditure	31
Consolidated and College Statement of Changes in Reserves	32
Consolidated Balance Sheet	33
College Balance Sheet	34
Consolidated Cash Flow Statement	35
Notes to the Financial Statements	36

Trustees’ Report

REFERENCE AND ADMINISTRATIVE INFORMATION

Status

St John’s College, Cambridge was founded in 1511 by Lady Margaret Beaufort, the mother of Henry VII, and is one of the largest of the 31 colleges within the University of Cambridge, each of which is an independent, self‐governing, body with its own property and income. Formerly an exempt charity, the College became a registered charity on 1 August 2010 with registration number 1137428 and is subject to regulation by the Charity Commission for England and Wales. The formal title of the College is the ‘College of St John the Evangelist in the University of Cambridge’. The short title is ‘St John’s College, Cambridge’.

Address and website

St John’s Street Cambridge CB2 1TP www.joh.cam.ac.uk

Charity trustees

The charity trustees of the College, who are the members of the College Council, during the year were:

The Vice‐Master, Professor Tim Whitmarsh (Chair) (to 30 September 2020) The Master, Mrs Heather Hancock (Chair) (from 1 October 2020) Mr Chris Ewbank Dr Helen Watson Professor Graham Burton (to 30 September 2020) Professor Ben Simons Professor Jason Robinson (to 30 September 2020) Mr Stephen Teal Professor Christine Gray Professor John Rink Professor Steve Edgley Dr Paul Wood Professor Chris Jiggins Professor Ulinka Rublack Dr Joana Meier (from 1 October 2020) Canon Mark Oakley (from 1 October 2020)

Senior Officers

Master (or Head of House) Mrs Heather Hancock President Professor Steve Edgley Senior Tutor Mr Richard Partington Senior Bursar Mr Chris Ewbank

Trustees’ Report

Membership of the Governing Body

The members of the Governing Body of the College as at 1 October 2021 are set out below:

Master: Mrs Heather Hancock

Dr Ben Garling Dr George Reid Professor Patrick Boyde Dr John Leake Dr Alan Macfarlane Professor David McMullen Dr Keith Matthews Mr Ray Jobling The Rev. Dr Andrew Macintosh Professor Jim Staunton Professor Malcolm Clarke Professor John Iliffe Professor Malcolm Schofield Professor Tim Bayliss‐Smith Professor Steve Gull Dr Howard Hughes Dr Peter Goddard Professor Peter T Johnstone Professor Ian Hutchings Professor Richard Beadle Dr John Hutchison Dr Derek Wight Professor Sir Richard Friend Dr Robin Glasscock Professor Robert Tombs Dr Dick McConnel Professor David Midgley Professor Peter Matthews Dr Martin Richards Professor John Kerrigan Professor Graham Burton Professor Geoff Horrocks Professor Sir Partha Dasgupta Professor Hugh Matthews Professor Jane Heal Dr Tom Hynes Professor Nick McCave Dr Andrew C (Ricky) Metaxas Colonel Richard Robinson Professor Simon Conway Morris Professor Ernest Laue Professor Robert Evans

Dr Sue Colwell Dr Helen Watson

Dr Joe McDermott Professor Christel Lane Dr Christopher Robinson Professor Yuri Suhov Professor Simon Szreter Professor Deborah Howard Professor Manucha Lisboa Professor Ulinka Rublack

President: Professor Steve Edgley Other Fellows (in order of election): Professor Ben Simons Professor Máire Ní Mhaonaigh Professor Duncan McFarlane Professor Christine Gray Dr Ian Winter Professor Nick Manton Dr Neil Arnold Dr Stefano Castelvecchi Professor Ann Louise Kinmonth Professor Janet Lees Professor Andrew Wyllie Professor Stefan Reif Professor David Stuart Dr Mark Nicholls Dr Matthias Dörrzapf Professor Pierpaolo Antonello Dr Preston Miracle Professor Andy Woods Commodore John Harris Professor Serena Best Dr Petra Geraats Dr Paul Wood Professor Emily Gowers Professor Usha Goswami Professor Richard Samworth Professor Graeme Barker Dr David Williams Miss Sylvana Tomaselli Mr Chris Ewbank Dr Frank Salmon Dr Chris Warnes Professor Chris Jiggins Mr Stephen Teal Mr Andrew Nethsingha Dr Tomas Larsson Professor Robert Mullins Professor Tuomas Knowles Professor Jason Robinson Dr Georgina Evans Professor Mete Atatüre Professor Zoubin Ghahramani Professor John Rink Professor Erwin Reisner Professor Ole Paulsen Professor Kristian Franze Professor Austen Lamacraft Professor Uta Paszkowski Professor Nathan MacDonald Professor John Taylor Professor Andrew Arsan Professor Meredith Crowley Professor Michael De Volder

Dr Hannah Joyce Dr Orietta Da Rold Professor Albertina Albors‐Llorens Professor Tim Whitmarsh Dr Edward Tipper Mr Tim Watts Professor Adam Chau Professor Graham Ladds Professor Richard Gilbertson Dr Fleur Kilburn‐Toppin Professor Eske Willerslev Dr Andy Wheeler Dr Gabriella Santangelo Dr Laura Torrente Murciano Dr Jodi Gardner Dr Ruth Abbott Ms Helen Murley Canon Mark Oakley Professor Eric Miska Professor Jean Abraham Dr John Weisweiler Dr Giuliana Fusco Dr Ester Salgarella Professor Helen McCarthy Dr Joana Meier Dr Stephanie Mawson Dr Dhruv Ranganathan Dr Jack Smith Dr Rebecca Shercliff Dr Kadi Saar Dr Talitha Kearey Dr Morag Morrison‐Helme Dr Matt Lampitt Ms Anna Plumridge Dr Isabelle Roland Dr Victoria Harvey Dr Amanda Sferruzzi‐Perri Professor Alexander Bird Dr Alexander Wong Dr Christiana Scheib Dr Jules O’Dwyer Professor Buzz Baum Dr Nick Friedman Dr Lucy McDonald Mr Virgil Andrei Mr Richard Partington Dr Benedek Kruchió Dr Marie Chabbert Mr Aaron Zhao Dr Rosalba García Millán Dr Anna Florin

Trustees’ Report (continued)

Principal Advisers

Actuaries Cartwright Group Ltd, 250 Fowler Avenue, Farnborough Business Park, Farnborough, Hants, GU14 7JP Auditor Crowe U.K. LLP, 55 Ludgate Hill, London, EC4M 7JW Bankers Barclays Bank PLC, PO Box 885, Mortlock House, Histon, Cambridge, CB24 9DE Investment Consultant Lane Clark & Peacock LLP, 95 Wigmore Street, London, W1U 1DQ Property Advisers Savills (L&P) Ltd, Unex House, 132‐134 Hills Road, Cambridge, CB2 2PA Savills (L&P) Ltd, Wytham Court, 11 West Way, Oxford, OX2 0QL Carter Jonas LLP, One Station Square, Cambridge, CB2 1GA Solicitors Mills & Reeve LLP, Botanic House, 100 Hills Road, Cambridge, CB2 1PH

GOVERNANCE

The Governing documents of the College are its letters patent of 7 August 1509, its deed of foundation of 9 April 1511 and its Statutes of 1926 as variously amended from time to time (the Statutes). The Statutes describe, among other things, the membership and responsibilities of the Governing Body and Council; the election and duties of the Master and President; the election, admission, tenure and removal of Fellows; and the appointment and duties of College officers. The Statutes are supplemented by orders for the regulation of the College’s affairs, made by the Council in accordance with the Statutes.

The members of the College Council, which is responsible for the day‐to‐day administration of the affairs of the College, are the charity trustees and are responsible for ensuring compliance with charity law. The members of the Council are the Master and twelve Fellows elected by the College’s Governing Body for rotating four year terms. The members of the Council during the year ended 30 June 2021 are set out in ‘Reference and administrative information’ on page 1.

The Governing Body of the College consists of the Master and all Fellows, and is the ultimate authority in the government of the College. It meets termly or more frequently as necessary.

All members of the Council are given, on appointment, an induction pack containing key Charity Commission guidance on public benefit and the good governance of charities, and the policy of the College for the management of conflicts of interest. Members of the Council are also required to complete a Register of Interests and declarations of interest are made systematically at meetings.

Elected representatives of the junior members of the College attend College Council meetings for the discussion of matters directly affecting the interests of undergraduates and post‐graduates.

The Master of the College is elected to office by the Fellows for a fixed term or until earlier resignation. They are responsible for general oversight of the affairs of the College. The Master chairs the Governing Body and the Council. In the event of incapacity of the Master or a vacancy in the Mastership, a Vice Master is appointed to act in the Master’s place.

The other College officers most involved in the governance of the College are as follows: the President, who is elected by the Fellows for a period of up to four years and, among other duties, acts as the Master’s deputy in their absence; the Senior Tutor, who has overall responsibility for the admission, education and welfare of students; the Deans, who are responsible for overseeing the Chapel and the conduct of junior members of the College; the Senior Bursar, who

Trustees’ Report (continued)

is responsible for managing the College’s finances; and the Domestic Bursar, who manages the domestic affairs of the College.

It is the duty of the Council to keep under review the effectiveness of the College’s internal systems of financial and other controls. The Council appoints the Audit Committee of the Council whose duty it is to advise the Council on the appointment of external auditors; to consider reports submitted by the auditors; to monitor the implementation of recommendations made by the auditors; and to monitor risk management and control arrangements. The Audit Committee of the Council makes an annual report to the Council. Membership of the Audit Committee of the Council comprises three members of the Council who are not College Officers. The Council also appoints a separate Audit Committee (Board of Scrutiny) which acts as a Board of Scrutiny and reports to the Governing Body.

Until 9 September 2021, St John’s College School was legally part of the College and had its own Governors, who were appointed by Governors. As at 30 June 2021, two of the eight Governors of the School were Fellows of the College. The School Governors were responsible for the appointment of the Head, for the educational policy and administration of the School and for the management of its finances. On 10 September 2021, the operation of the School was transferred into a company limited by guarantee, St John’s College School, Cambridge which is a separately registered charity. The College is the sole member of the company and the School Governors are the directors and the charity trustees.

The Visitor of the College is the Bishop of Ely.

OBJECTS AND AIMS

Objects

The charitable objects of the College are, for the public benefit, to advance education, religion, learning and research, particularly but not exclusively through the provision of a College within the University of Cambridge and through the provision of facilities for, and the conduct of, divine service within the College.

Aims

The College has developed a series of aims that summarise its approach to achieving its charitable objects, which are:

To admit students on the basis of academic ability and potential alone irrespective of financial circumstances and social, religious or ethnic background, to preserve the College’s ability to select the best students and to provide financial support to students;
To maintain a balanced mix of undergraduate, taught post‐graduate and research post‐graduate students, and to preserve a broad range of academic activity whilst remaining small enough to retain a sense of community and individuality;
To deliver an outstanding education for undergraduates and post‐graduate students, and to sustain the supervision and tutorial welfare systems that are pivotal to the University’s tradition of excellence;
To encourage and support research of international importance by Fellows and post‐graduate students, and to introduce undergraduates to the nature and excitement of original research;
To carry forward the tradition, maintained continuously since its foundation, of being a place of reflection on matters of religious faith;
To provide outstanding social, cultural, musical and sporting opportunities that are a key part of the experience offered by the College and which contribute to the personal development of its members;
To conserve and enhance the College’s historic buildings and grounds, an important part of the world’s architectural heritage, whilst at the same time providing first‐class facilities and infrastructure for the activities that take place within them;
To preserve the College’s independence and self‐determination, which with that of other Colleges is a fundamental ingredient in the diversity and success of the collegiate University;
To take a lead in sustaining and enhancing the ability of the University to continue as one of the world's very top academic institutions, in the face of increasing international competition;

Trustees’ Report (continued)

To recognise and value all our alumni as life‐long members of the College community, appreciated for their continuing involvement in, and support of, the College; and
To operate on a sustainable basis, deploying our resources in a way that preserves intergenerational equity, and living within our means.

The aims of St John’s College School are:

To educate and accommodate as boarders the Choristers of St John’s College Choir who are admitted on the basis of vocal and musical ability;
Otherwise, to continue a largely non‐selective admissions policy;
To offer an outstanding education that fosters the aptitudes and nurtures the growth of each pupil at the School;
To match its commitment to academic excellence with outstanding non‐academic tuition and activities to provide a rich and fulfilling curriculum;
To give the highest priority to pastoral care and to provide excellent boarding provision;
To foster a genuine sense of community among pupils, parents and staff as well as past pupils and parents; and
To offer significant financial support through fee remission and bursaries.

ACTIVITIES, PERFORMANCE AND FUTURE PLANS

Introduction

In setting objectives and planning activities, the College Council has given careful consideration to the Charity Commission’s general guidance on public benefit and, in particular, to its supplementary public benefit guidance on advancing education, advancing religion and on fee‐charging.

The principal objectives of the College for the year were: to continue to strengthen the College’s access and outreach programme; to enhance the very substantial financial support provided to its students; to strengthen the teaching capabilities of the College; to continue to improve academic performance in Tripos exams; to continue to contribute to the research capabilities of the University through the College’s Research Fellowship and other schemes; to continue to provide opportunities for University post‐doctoral researchers to become associated with the College; and to continue the College’s successful fundraising programme.

The Impact of COVID‐19 on College Activities

The College’s priority during the year was to enable College life to continue as fully, and as safely, as possible for its members, within the constraints created by COVID‐19. The challenges of varying levels of lockdown and other restrictions have been met with a pragmatic, risk‐based approach, making as much use of the College’s outside space as possible, and finding alternative ways of working and socialising. The Gold and Silver groups continued to meet as necessary to ensure the College was operating safely and following the latest guidance from the government, Public Health England, and the University. Many hours were spent writing, reviewing and updating risk assessments for activities and events. The College demonstrated flexibility and resilience in adjusting to announcements at short notice, including the lock down and reversion to remote teaching for the Lent term. Almost all students were in residence during the Michaelmas and Easter terms, and almost half of students resident in College accommodation remained in Cambridge through all or part of the lockdown between January and April 2021. The end of the academic year was marked by a series of celebrations for current students, followed by a special ceremony in early July for the graduands of 2020, who had missed out on a formal graduation ceremony.

The financial impact of the pandemic on the College was more pronounced in the current year than the previous year, when only the final four months were affected. The College remained closed to external visitors, which reduced annual income of around £1.5m from Catering and Conferences and Tourism almost to zero. A further £1m of student accommodation and catering income was lost as a result of the lockdown during Lent term. The loss of income was partially offset by reductions of £0.5m across Residences, Catering and Conference costs compared to the previous

Trustees’ Report (continued)

year, but the College’s cost‐base offers limited opportunity to make significant savings on a temporary basis. Other costs increased in response to COVID‐19, notably a £0.3m increase in needs‐based bursaries and grants to students. The College claimed £0.9m (2020: £0.6m) from the Coronavirus Jobs Retention Scheme towards the cost of staff who were furloughed or flexibly furloughed during the year. The College has considered various recovery scenarios for 2021‐22 and beyond, to assess the impact on College activities and finances over the short, medium and longer term, and adapt plans accordingly.

Activities and Performance

St John’s experienced another annual increase of Undergraduate admissions applications in 2020‐21, with 1,282 applications received and more than 900 candidates interviewed. The COVID‐19 pandemic required the quick adoption of remote interviews and digital admissions systems, which presented substantial logistical and administrative challenges. A sizeable programme of outreach and recruitment activities has been undertaken, nearly all of which was virtual due to the COVID‐19 pandemic. This included open days, subject taster days, admissions clinics, information and guidance sessions and mentoring. There has been continued engagement with Link Areas through online outreach sessions alongside new collaborative outreach programmes targeting particular cohorts of prospective applicants such as the ClickCambridge and the West Midlands Webinars programmes. 2020‐21 also saw the beginning of our partnership with Generating Genius, which involves a multi‐intervention outreach programme targeting high‐achieving Black students from London state schools in STEM subjects. There was continued contribution to the Cambridge Bursary Scheme with 172 means‐tested bursaries being provided in the year, of which 119 were at the maximum bursary level of £3,500. We awarded 109 full St John’s College Studentships to students from a low‐ income background, which in combination with the Cambridge Bursary covered their maintenance expenses in full. We awarded 45 sliding scale Studentships to students from middle‐income backgrounds. The total expenditure on Studentships (full and partial) was just below £1m. Due to the pandemic, the number of summer research projects and activities of students was significantly lower in summer 2020; nonetheless, the College still supported 15 projects with a total amount of approximately £12k. With the Pre‐Admissions Prizes scheme winding down and funding being redirected to Studentships, there were 6 Pre‐Admissions Prizes awarded to Home students from state schools this year. Also, there were 5 full undergraduate scholarships; 22 partial scholarships; and 12 top‐up funding bursaries for international and EU students. A new Senior Tutor was appointed, also a Title B Fellow in History, starting in August 2021. Five outstanding new Research Fellows were elected in Archaeology, Classics, Computer Science, Modern & Mediaeval Languages and Physics and Astrophysics, and six new College Research Associates, offering a College affiliation to a significant number of talented post‐doctoral researchers in the University.

The principal objectives of the School are to foster the aptitudes and nurture the growth of each child whilst instilling a love of learning through a broad curriculum.

The 2020‐2021 academic year was dominated by guidance and restrictions placed on all schools by the Government in response to the global Covid‐19 pandemic. Whilst children were in school during the Michaelmas Term 2020 and Summer Term 2021, with certain restrictions in place, the majority of the Lent Term 2021 was subject to a national lockdown. The School was able to learn lessons from the lockdown which started in March 2020 and worked hard to enhance yet further its online offering whilst putting in place supervision for the children of key workers in School.

Throughout the year, the School’s focus continued to be on the mental and physical well‐being of its children and staff. Communication with children and their families as well as ensuring staff were safe and well were key priorities during the national lockdown. Its aim was also to ensure children did not fall behind in their learning and the teacher‐ led, timetabled online lessons during the lockdown were very well received by parents and helped children make progress. This progress was confirmed by staff when children returned to school.

The School worked to create as normal an atmosphere and routine when children were present. Although staggered timetables were devised to allow each year group to function as its own ‘bubble’, where it was possible to plan events the School endeavoured to deliver. Concerts were live‐streamed to parents’ homes and the annual Christmas Service was presented as a video with the use of a Green Screen which enabled the children to be placed virtually in St John’s College Chapel. Sports’ fixtures were not allowed until later in the summer term but a wide variety of outdoor activities were arranged and internal competitive games within year groups. The outward bound summer trips to venues such as the Brecon Beacons and Norfolk for children in Years 5, 6, 7 and 8 went ahead, although in slightly different formats, giving children the opportunity for learning experiences which had been all too rare in the previous 15 months.

Trustees’ Report (continued)

Year 8 children were well prepared for their future schools and were successful in gaining places to their chosen destination schools. This was in spite of assessment requirements being changed, sometimes at short notice. The cohort of 47 children gained 16 scholarships in Art, Music, Drama and Sport and 3 Academic awards.

Sadly, the School’s growing partnership and outreach projects were curtailed during this year, although it continued with these when restrictions were eased. The School is committed to starting these projects again when restrictions allow.

Future Plans

The College’s interim Strategic Plan sets out the College’s ambitions to, among other things: enhance its widening participation activities; provide greater financial support for students; enhance student wellbeing; progress projects under the College’s Estate Masterplan; and reach the £100 million target of the ‘Free Thinking’ fundraising campaign.

In relation to the COVID‐19 pandemic, the College continues to adapt in line with new developments and guidance, to integrate lessons learned into future planning, and to prioritise the safety and wellbeing of all College members and staff.

The School will continue to put the well‐being of each child at the centre of its aims and objectives. It passionately believes that a school culture which puts well‐being at its centre with the provision of a broad education enables children to be their best selves and that this is the foundation for academic success.

As it begins the next phase of its history as a separate charity and company limited by guarantee, it is committed to remaining progressive in its delivery of a curriculum fit for the modern world, including a focus on equality, diversity and inclusion, increase its partnership and outreach programme and increase accessibility through a fundraising campaign for bursaries.

Through the four areas of its development plan (Pastoral Care; Teaching and Learning; Sustainability, Outreach and Partnerships; and Premises), the School continues not only to aim to give the very best education to its children, giving them the best opportunity to be their best selves, but to be outward looking and socially responsible in a fast changing world and in extraordinary times.

Trustees’ Report (continued)

FINANCIAL REVIEW

Scope of the Financial Statements

The consolidated financial statements include the College itself, St John’s College School and the College’s wholly‐ owned trading subsidiaries which are:

St John’s Enterprises Limited, which undertakes principally conference and tourism activities;
Aquila Investments Limited, which undertakes principally property development and farming;
St John’s Innovation Centre Limited, which manages St John’s Innovation Centre on behalf of the College, and provides advice and guidance to early‐stage knowledge‐based businesses in the Cambridge sub‐region;
Lomas Developments Limited, which undertakes principally property development; and
SJCS International Limited, which licences intellectual property in relation to St John’s College School.

The accounts of dormant companies are also consolidated.

The financial statements are produced by the College having regard to the Recommended Cambridge College Account (RCCA) format introduced through revisions to Statute G,III of the University which replaced the previous format introduced in 1926 by the University of Cambridge Commissioners.

Results overview

Income before donations and endowments

----- Start of picture text -----
Investment income £22,275
£21,815
School income £7,085
£6,583
2021
£000 Accommodation, catering £4,136
2020 and conferences £5,499
£000
Academic fees £4,614
and charges £4,583
£810
Other income
£934
----- End of picture text -----

Overall, income before donations and endowments reduced from £39.4m in 2020 to £38.9m in 2021. The most significant factors in the reduction were the loss of external catering and conference business, and the reduction in student accommodation fees due to the lockdown in Lent term 2021. School income increased, as a fee reduction had been offered to parents for the Summer term 2020, but full fees were charged throughout 2020‐21.

Income before donations and endowments in 2021 included £0.9m (2020: £0.6m) claimed from the government’s Coronavirus Jobs Retention Scheme by the College and subsidiaries.

Income before donations and endowments represented 79.3% of income in 2021, a significant reduction from 91.8% in 2020, due to the high level of Endowment donations in 2021.

Trustees’ Report (continued)

Development and Fundraising

College fundraising is focused on the support of a number of activities across the College: teaching and research; student support, including bursaries and scholarships and outreach and access; the maintenance and development of the fabric of the estate; extracurricular activities including sport, music and the arts; general purposes, and an annual fund.

Income from donations and new endowments represented 20.7% of total income (8.2% in the previous year).

----- Start of picture text -----
£1,151
Donations
£1,520
2021
£8,807
£000 New endowments
£1,837
2020
£000
Other capital £209
grants for assets £175
£0 £1,000 £2,000 £3,000 £4,000 £5,000 £6,000 £7,000 £8,000 £9,000 £10,000
----- End of picture text -----

Total donations increased from £3.5m in 2020 to £10.2m in 2021, nearly three times the prior year. This was due to some very significant Endowment donations, including £3.66m for the College’s Free Places scheme which was announced in April 2021 and aims to fully fund the tuition fees and maintenance costs of undergraduate students from low‐income backgrounds with an overall fundraising target of £25m, £2.5m to support Field Sports, £0.9m for a Research Fellowship, and £0.5m donations to the Professor Sir Christopher Dobson PhD Scholarship fund. Current Use donations reduced for the second year in a row, from £1.5m in 2020 to £1.2m in 2021. The largest reduction was in donations for the Studentships scheme, as this will be replaced by the Free Places scheme and donations are now being directed into the Endowment to provide funding on a long‐term basis.

St John’s College is committed to best practice in relation to all fundraising activities, which are carried out by an in‐ house Development team who are subject to the scrutiny of the Development Committee and College Council. The College did not engage any third parties to carry out fundraising activities on its behalf during the year. The College is registered with the Fundraising Regulator and has set up internal protocols and procedures to adhere to the Code of Fundraising Practice as a set of guiding principles to ensure fundraising is legal, open, honest and respectful. This national code of practice includes rules governing consent, data sharing, data protection and privacy relating to all electronic and print communications. Within this framework the College is fully compliant with GDPR and PECR regulations. Face to face meetings with donors and potential donors are conducted only with the prior consent of the individual. The College received no formal complaints in the financial year 1 July 2020 to 30 June 2021. A series of guidelines, in line with the recommendations as set out in the Fundraising Regulator’s Code of Fundraising Practice, has been adopted to protect vulnerable people and to guard against intrusion on a person’s privacy. Unreasonably persistent behaviour by fundraisers or undue pressure on a person to give money or other property is neither tolerated nor encouraged by operating guidelines.

Trustees’ Report (continued)

Expenditure

The main areas of expenditure for the College and a description of key changes are set out below:

----- Start of picture text -----
Education £14,358
£14,308
Residences, catering £13,288
and conferences £13,799
2021 Investment costs £7,819
£000 £7,636
2020
£7,064
£000 School expenditure £7,005
£1,882
Other expenditure
£2,092
Contribution under £955
Statute G,II £914
----- End of picture text -----

Most costs showed a small increase compared to the prior year, with the exception of Residences, Catering and Conferences costs which reduced by £0.5m, as a result of significantly reduced activities due to the COVID‐19 pandemic. The reduction in Other Expenditure mainly related to the College Choir, as it was not possible to tour due to travel restrictions.

The Contribution under Statute G,II is an intercollegiate taxation charge which is contributed to the Colleges Fund, which makes grants to colleges with inadequate endowments.

The expenditure for each of the activities described above is made up of staff costs, other operating expenses, depreciation, and interest and other finance costs, as follows:

----- Start of picture text -----
Other operating £18,374
expenses £18,960
2021 Staff costs £19,621
£000 £19,199
2020
£6,004
£000 Depreciation £5,922
Interest and other £1,367
finance costs £1,673
----- End of picture text -----

The reduction in Other Operating Expenses was mainly due to the impact of COVID‐19. The increase in staff costs related to increases in emoluments for Fellows and other academic staff (£0.1m) and College non‐academic staff (£0.1m), and pension costs for College non‐academic staff increased by £0.2m due to an increase in the current service accrual adjustment in the CCFPS pension scheme.

Results on the distribution basis

The College manages all its long‐term investments on a total return basis and determines, through a spending rule, a prudent distribution each year. However, whilst accounting standards permit permanent endowment funds to be

Trustees’ Report (continued)

accounted for on a total return basis, they do not allow expendable funds to be accounted for on that basis. Since the College invests its funds classified as expendable endowments and reserves, as well as its permanent endowment funds, on a total return basis, the Consolidated Statement of Comprehensive Income and Expenditure of the College does not therefore reflect all of the distribution determined under the College’s spending rule, from expendable endowments and general reserves.

The College has therefore adopted the approach of providing additional information following the Consolidated Statement of Comprehensive Income and Expenditure to show what the income and deficit of the Group would have been had income in the Consolidated Statement of Comprehensive Income & Expenditure instead been based on this “distribution basis” i.e. reflecting the full distribution from expendable endowments and general reserves. The summary results set out below are on the distribution basis, as the College considers that this more appropriately reflects its financial performance.

The College’s Consolidated Statement of Comprehensive Income and Expenditure on the distribution basis for the years ended 30 June 2021 and 2020 are summarised below:

2021 2020 £’000 £’000 41,206 41,431 10,167 3,532	Change £’000 (225) 6,635	% change (0.5%) 187.9%

51,373 44,963 39,362 39,832	6,410 (470)	14.3% (1.2%)
12,011 5,131 6,004 5,922	6,880 82	134.1% 1.4%
6,007 (791) (3,009) (2,803)	6,798 (206)	(859.1%) 7.4%

A reconciliation of total income on the distribution basis to total income recorded in the Consolidated Statement of Comprehensive Income and Expenditure is included at note 3g.

Capital Expenditure

The Group incurred capital expenditure on tangible fixed assets during the year amounting to £4.9m (including a transfer of investment property to operational use for £0.7m), compared to a prior year figure of £2.8m. Expenditure in 2020‐21 included the purchase of two new properties, finalising designs and enabling works for the major refurbishment of catering facilities ready for construction to start in July 2021, and further investment in IT infrastructure.

Balance sheet

Consolidated net assets stood at £904.9m at 30 June 2021, up £77.5m (9.4%) on the prior year. The increase was caused by the £75.1m surplus for the year and a £2.4m actuarial reduction in pension deficit liabilities.

Reserves

At 30 June 2021, the unrestricted income and expenditure reserve stood at £246.5m, up £7.5m (3.1%) on the prior year. There were no movements in the year other than the surplus for the year, and actuarial gain on the College’s defined benefit pension schemes shown within Other Comprehensive Income. The revaluation reserve remained at £8.7m as no operational properties were revalued during the year.

Trustees’ Report (continued)

Restricted and endowment reserves increased by £69.9m (12.1%) compared to the prior year; within restricted reserves the balance of funds held for current use reduced by £0.6m to £3.0m, and expendable restricted endowments increased from £34.7m to £40.4m. The endowment reserve increased by £64.8m (12.0%) to £606.1m, of which £124.7m (2020: £98.9m) is held in permanent endowment funds with restricted purposes, and £481.3m (2020: £442.4m) in permanent unrestricted endowment funds.

Total funds as at 30 June 2021 were £904.9m, up £77.5m (9.4%) on the prior year.

Endowment and Investment Performance

The College has a pool of capital invested for the long‐term to support the charitable activities of the College by providing a reliable source of funding for the College’s operations in perpetuity. This is known as the College’s ‘Endowment’ though it includes assets other than the investments as set out in note 9, and does not include those investments held principally for operational purposes.

The investment objective of the Endowment is to produce the highest total return consistent with the preservation of long‐term capital value in real terms (such that the College itself can fulfil its charitable objectives in perpetuity and be even handed between the interests of present and future beneficiaries), an acceptable degree of risk and the maintenance of appropriate liquidity.

The total value of the Endowment was £695.4m at 30 June 2021, up £77.2m (12.5%) from its value at 30 June 2020. The increase was due to gains on investments across both investment property and securities.

The assets and liabilities of the Endowment fall under a number of headings in the accounts, with the following breakdown:

Investments Tangible fixed assets Stock Trade and other receivables Cash and cash equivalents Sub‐total assets Creditors falling due within one year Creditors falling due after more than one year Total	2021 2020 Change £’000 £’000 £’000 664,863 563,733 101,130 52 60 (8) 58 133 (75) 11,019 13,603 (2,584) 40,487 59,968 (19,481)	% change 17.9% (13.3%) (56.4%) (19.0%) (32.5%)
	716,479 637,497 78,982 (9,052) (7,283) (1,769) (12,000) (12,000) ‐	12.4% 24.3% ‐
	695,427 618,214 77,213	12.5%

The College is exposed to foreign exchange risk on the investments it holds in foreign currencies. The College’s policy is not normally to enter into forward foreign exchange contracts to offset exposure to foreign exchange movements in respect of these investments, and none was outstanding at June 2021 or June 2020.

The College operates a policy concerning Environmental, Social and Governance factors relating to Endowment Investments. Under the terms of that policy and having regard to the requirements of charity law to maximise returns, the College seeks to ensure that investments are not made in companies whose practices are in conflict with the charitable purposes of the College or are likely to alienate the members or benefactors of the College. The College also monitors and engages with investment managers on their ESG policies and practices.

Trustees’ Report (continued)

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks the College must address are the long‐term ability to maintain and develop its educational and research activities, to attract the best staff and students, and to maintain and renew its physical facilities.

The key financial uncertainties and risks, and the measures taken to manage them, are:

The financial implications of the COVID‐19 pandemic: The College has prepared scenario forecasts around the possible impacts of COVID‐19, including on operating income (tuition fees, student rents and catering & conference activities), investment income, and investment valuations, and is reviewing these on an ongoing basis to adapt to the constantly changing circumstances and government restrictions and advice;
The long‐term impact of the changed student financing and fee model on College fee income: The College monitors the real value of fees for each type of student, and the diversification of the student body between different types of students reduces the possible impact of a significant adverse change in one area of fees or funding;
The costs of future student financial support: The College has developed a long‐term funding strategy for student financial support, and is actively fundraising to support this, including through the establishment of permanent endowment funds to guarantee the availability of funding in the future;
Movements in investment markets reducing the real value of the Endowment: The College’s Investments Committee, with advice from an Investment Consultant, regularly reviews actual and projected returns and monitors the asset allocation within the Endowment to ensure adequate diversification of investments. The target spending rate is set at a prudent level to preserve the purchasing power of the Endowment in real terms, and the spending rule is designed to protect the College from a sudden fall in income should there be a material fall in the markets by the application of a cap and floor on the annual distribution;
Unexpected building maintenance expenditure: The condition of the estate is monitored through condition surveys, the incidence of complaints or accidents, and the level of interest in booking facilities, and a maintenance and refurbishment programme is in place with the appropriate resources to maintain the College’s estate;
Those arising from the effects on the UK economy of the departure of the UK from the European Union and the end of the transition period: The breadth and extent of these effects remain unclear, but the College is considering possible implications as part of its overall planning, including in the areas of procurement, human resources, student recruitment and funding, investment management, and financial planning;
The climate crisis: The College has announced its target to reduce greenhouse gas emissions to net zero before 2050 and to achieve a steep reduction by 2030, and is developing an ambitious programme of work to achieve this across both operational and investment properties, and has committed to divest from all meaningful indirect investments in fossil fuel companies by 2030. These developments will have significant financial implications for the College; and
The long‐term cost of defined benefit pension provision: The College participates in several defined benefit pension schemes, and estimates future cost of contributions through review of the scheme actuarial valuations and Pension Trustee communications. The College has taken steps to reduce exposure to rising employer contributions in the largest scheme, through closing the scheme to new entrants and adjusting contributions to ensure a more equitable split between employer and employee contributions, and is making deficit reduction payments into each of the schemes. The School exited the Teachers’ Pension Scheme in April 2021 and joined a defined contribution scheme.

The College monitors and manages risks more widely through the internal control processes outlined in the Statement of Internal Control below.

RESPONSIBILITIES OF THE COLLEGE COUNCIL

In accordance with the College’s Statutes, the Council is responsible for the administration of the Group’s and College’s affairs.

The Council is responsible for preparing the Annual Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including

Trustees’ Report (continued)

FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and the Statement of Recommended Practice: Accounting for Further and Higher Education.

The College’s Statutes and the Statutes and Ordinances of the University of Cambridge require the Council to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and the College and of the surplus or deficit of the Group for that period. In preparing these financial statements the Council is required to:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on a going concern basis unless it is inappropriate to presume that the Group and College will continue in operation.

At the time of approval of the Annual Report, the COVID‐19 pandemic continues to evolve and any long‐term impact on the College is unknown. The impact on the College and current actions taken by trustees and management in response to the pandemic are explained on page 5. The trustees have reviewed the position carefully with a view to ensuring that activities continue and staff, students and other stakeholders remain safe. Scenario analysis has considered sensitivities around financial projections for the period to June 2023, for both operational income and expenditure, and Endowment investments and income. The Trustees have concluded that the Endowment distribution under the spending rule (explained on page 22), together with £10m undrawn headroom on the revolving credit facility which is in place to May 2023, provide sufficient assurance that the College will be able to continue to meet its commitments. Accordingly, the trustees believe the College’s financial resources are sufficient to ensure there are no material uncertainties around its ability to continue as a going concern for the foreseeable future, being at least 12 months from the date of approval of the financial statements and have therefore prepared the financial statements on the going concern basis.

The Council is responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the Group and the College and enable them to ensure that the financial statements comply with the Statutes of the University of Cambridge. They are also responsible for safeguarding the assets of the Group and the College and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Council is responsible for the maintenance and integrity of the corporate and financial information included on the College’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

STATEMENT OF INTERNAL CONTROL

The Council is responsible for maintaining a sound system of internal control that supports the achievement of policy, aims and objectives while safeguarding the public and other funds and assets for which the Council is responsible, in accordance with the College’s Statutes. The system of internal control is designed to manage rather than eliminate the risk of failure to achieve policies, aims and objectives; it therefore provides reasonable but not absolute assurance of effectiveness.

The system of internal control is designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. This process was in place for the year ended 30 June 2021 and up to the date of approval of the financial statements.

The Council is responsible for reviewing the effectiveness of the system of internal control. The following processes have been established:

The Council has nineteen regular meetings each year and gives consideration to the major risks to which the College and its subsidiary undertakings are exposed and satisfies itself that systems or procedures are established in order to manage those risks.

Trustees’ Report (continued)

Key controls used by the College include:

Formal agendas for all Committee and Council activity;
Clear terms of reference for all committees;
Strategic planning, budgeting, management accounting and cash flow forecasting;
Established organisational structure and lines of reporting;
Formal written policies in key areas such as health and safety and child protection; and
Authorisation and approval levels.

The College is seeking to enhance these controls through a formal risk‐management process involving the further development of a risk register. The relevant individuals in the College will be charged with responsibility for evaluating the risks coming within their areas of responsibility and advising on the nature of the risk, the probability of occurrence and severity of impact, as well as steps taken to mitigate the risk. Through the risk register, the College will seek to identify and manage risks. However, the nature of the College’s activities is such that the College is faced with a large number of risks, not all of which can be mitigated.

The Council’s review of the effectiveness of the system of internal control is informed by the work of the various Committees, the Bursars and College Officers who have responsibility for the development and maintenance of the internal control framework, and by comments made by the external auditors in their management letter and other reports.

OUTLOOK

Whilst the College is fortunate in being a relatively well‐endowed college, its commitments and role in the University are commensurately significant and the College has experienced, and will continue to face, a number of significant financial challenges many of which are common to the University and other Cambridge colleges. The COVID‐19 pandemic has presented an immediate and dominating challenge, but the College continues to work on our core priorities. Chief among these are the need to increase student support, to cope with increased cost of pension provision, to manage the cost of maintaining and refurbishing the College buildings, to steward the Endowment through potentially difficult financial markets, to take meaningful action to address the climate crisis, and to navigate the departure of the UK from the European Union.

The College seeks to respond to these financial challenges by focusing on efficient financial management and endeavouring to manage its resources to best effect. However, if it is to be able to sustain and develop the activities that are critical to its mission and achieve its full potential, it is clear that the College will need to continue to raise additional funds over the coming years.

On behalf of the College Council

Heather Hancock Master

Chris Ewbank Senior Bursar

18 November 2021

INDEPENDENT AUDITORS’ REPORT TO THE GOVERNING BODY OF ST JOHN’S COLLEGE

We have audited the financial statements of the St John’s College (‘the charity’) and its subsidiaries (‘the group’) for the year ended 30 June 2021 which comprise the Statements of Financial Activities, the Group and charity balance sheets, the Consolidated cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group’s and the charity’s affairs as at 30 June 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
have been prepared in accordance with the requirements of the Charities Act 2011; and
the contribution due from the College to the University has been correctly computed as advised in the provisional assessment by the University of Cambridge and in accordance with the provisions of Statute G,II, of the University of Cambridge.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
sufficient and proper accounting records have not been kept by the parent charity; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non‐compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non‐compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act together with the Statement of Recommended Practice for Further and Higher Education (SORP) 2019, Recommended Cambridge College Accounts (RCCA) disclosures, taxation legislation and general data protection legislation. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s and group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud.

Auditing standards limit the required audit procedures to identify non‐compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing surrounding recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non‐compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non‐detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non‐compliance and cannot be expected to detect non‐compliance with all laws and regulations.

Use of our report

This report is made solely to the charity’s members, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicola May Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London

Date 25 November 2021

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Statement of Principal Accounting Policies

BASIS OF PREPARATION

The Financial Statements have been prepared in accordance with the provisions of the Statutes of the College and of the University of Cambridge, with regard to the Recommended Cambridge College Accounts (RCCA) format; and applicable United Kingdom Accounting Standards, including Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education issued in 2019.

The Statement of Comprehensive Income and Expenditure includes activity analysis in order to demonstrate that all fee income is spent for educational purposes. The analysis required by the SORP is set out in note 6.

The College is a public benefit entity and therefore has applied the relevant public benefit requirement of the applicable UK laws and accounting standards.

The College’s activities and financial position, together with the factors likely to affect its future development, performance and position, are set out in the Trustees’ Report which forms part of this Annual Report. At the time of approval of the Annual Report, the COVID‐19 pandemic continues to evolve and any long‐term impact on the College is unknown. The impact on the College and current actions taken by trustees and management in response to the pandemic are explained on page 5. The trustees have reviewed the position carefully with a view to ensuring that activities continue and staff, students and other stakeholders remain safe. Scenario analysis has considered sensitivities around financial projections for the period to June 2023, for both operational income and expenditure, and Endowment investments and income. The Trustees have concluded that the Endowment distribution under the spending rule (explained on page 22), together with £10m undrawn headroom on the revolving credit facility which is in place to May 2023, provide sufficient assurance that the College will be able to continue to meet its commitments. Accordingly, the trustees’ believe the College’s financial resources are sufficient to ensure there are no material uncertainties around its ability to continue as a going concern for the foreseeable future, being at least 12 months from the date of approval of the financial statements and have therefore prepared the financial statements on the going concern basis.

BASIS OF ACCOUNTING

The Financial Statements have been prepared under the historical cost convention, modified in respect of the treatment of investments and certain operational properties which are included at valuation.

BASIS OF CONSOLIDATION

The consolidated Financial Statements include the College and its subsidiary undertakings. Details of the subsidiary undertakings included are set out in note 28. Intra‐group balances are eliminated on consolidation. The consolidated Financial Statements do not include the activities of student societies as these are separate bodies in which the College has no financial interest and because these are viewed as autonomous activities.

Associated companies and joint ventures are accounted for using the equity method.

JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. These judgements, estimates and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results.

Management consider the areas set out below to be those where critical accounting judgements have been applied and the resulting estimates and assumptions may lead to adjustments to the future carrying amounts of assets and liabilities.

Statement of Principal Accounting Policies

Pension Benefits

FRS 102 makes the distinction between a Group Plan and a multi‐employer scheme. The College has reviewed all the pension schemes in which it participates, and is satisfied that only the schemes provided by Universities Superannuation Scheme and Church of England meet the definition of a multi‐employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the funding plans in existence at the date of approving the accounts.

Classification of property

The College determines whether a property is classified as investment property.

Investment property comprises land and buildings that are not occupied substantially for use by or in the operations of the College, nor for sale in the ordinary course of business, but are held primarily to earn rental income and capital appreciation. These buildings are substantially rented to tenants.

ESTIMATES AND ASSUMPTIONS

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.

The College based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the College. Such changes are reflected in the assumptions when they occur.

Revaluation of Investment Properties

The College carries its investment property at fair value, with changes in fair value being recognised in profit or loss. The College engaged independent valuation specialists to determine fair value at 30 June 2021. The valuers determined the open market value using the desktop valuation method. The determined fair value of the investment property is most sensitive to the estimated yield as well as the long term vacancy rate.

Valuation of non‐quoted investments

The College carries its non‐quoted investments at fair value based on the most recent valuations provided by independent fund managers, with changes in fair value being recognised in profit or loss.

Pension liabilities

The cost of defined benefit pension plans are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long term nature of these plans, such estimates are subject to significant uncertainty. Further details are given in note 26.

As the College is contractually bound to make deficit recovery payments to USS, this is recognised as a liability on the balance sheet. The provision is currently based on the USS deficit recovery plan agreed after the 2018 actuarial valuation, which defines the deficit payment required as a percentage of future salaries until 2028. These contributions will be reassessed within each triennial valuation of the scheme. The provision is based on management’s estimate of expected future salary inflation, changes in staff numbers and the prevailing rate of discount. Further details are set out in note 26.

Statement of Principal Accounting Policies

RECOGNITION OF INCOME

Academic Fees

Academic fees for the College and the School are recognised in the period to which they relate and include all fees chargeable to students or their sponsors. The cost of any fees waived or written off by the College and the School is included as expenditure.

Cambridge Bursary Scheme

In 2020‐21, payment of the Cambridge Bursaries to eligible students was made directly by the Student Loans Company (SLC). As a consequence, the College reimbursed the SLC for the full amount paid to their eligible students and the College subsequently received a contribution from the University of Cambridge towards this payment.

The net payment of £234k is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows:

Other Academic Income £279k Expenditure £513k

Rental Income

Rental income is recognised on an accruals basis according to the terms of the lease.

Donations and Benefactions

Charitable donations are recognised on receipt or when the College is entitled to the income and the value can be measured reliably. The accounting treatment of a donation depends on the nature and extent of restrictions specified by the donor. In the absence of specific instructions from the donor the Council considers the donor’s correspondence and association with the College together with the size of the sum involved when determining the accounting treatment. Donations are recognised as income in the Consolidated Statement of Comprehensive Income and Expenditure. Donations which are to be retained for the future benefit of the College, and other donations with substantially restricted purposes, are retained within endowments or restricted reserves until such time that they are utilised in line with such restrictions.

Legacies are recognised when the College is entitled to the funds, when receipt is probable and when amounts can be measured reliably which is the earlier of probate being granted or final estate accounts being received when it becomes probable that a distribution will be made to the College. Where entitlement is demonstrated, the College only recognises income to the extent that future distributions can be measured reliably. For residual legacies this means that the value of future distributions is estimated based on available evidence in the year. These estimates are regularly reviewed and updated as required.

Donations and endowments with restrictions are classified as restricted reserves with additional disclosure within the notes to the accounts.

There are four main types of donations and endowments with restrictions:

Restricted donations – the donor has specified that the donation must be used for a particular objective, and it is not to be invested for the longer term;
Restricted expendable endowments – the donor has specified a particular objective and the College can convert the donated sum into income;
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; and
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 College.

Statement of Principal Accounting Policies

Donations with no restrictions are recorded within the Consolidated Statement of Comprehensive Income and Expenditure when the College is entitled to the income.

Endowment and Investment Income

All investment income and change in value of investment assets is recorded in the Consolidated Statement of Comprehensive Income and Expenditure in the period in which it arises and as either restricted or unrestricted income according to the terms of the individual endowment fund.

For endowment income from permanent endowments, the College applies either a total return or a standard method of accounting for fund investment returns, depending on the nature of the fund, as set out below:

For permanent funds where the level of distributable reserves has not yet reached at least 20% of original capital, the standard method accounting policy is applied and the investment income shown in the Consolidated Statement of Comprehensive Income and Expenditure is the actual income earned in the year. Any excess of income over qualifying expenditure is retained within the endowment reserve until such time that they are utilised in line with any applicable restrictions, at which point the income is released through the transfer of endowment return shown within income in the Consolidated Statement of Comprehensive Income and Expenditure.

For permanent funds where the level of distributable reserves has reached at least 20% of original capital, a total return accounting policy is applied. A proportion of the related earnings and capital appreciation is shown as a transfer within the Consolidated Statement of Comprehensive Income and Expenditure in accordance with the total return concept, with any excess remaining in the endowment fund. For permanent endowment funds with restricted purposes, the sum transferred in the Statement of Comprehensive Income and Expenditure is limited to the qualifying expenditure incurred in the year. The surplus or deficiency of total return, after deducting the annual Endowment transfer, is carried forward as unapplied total return.

Under the total return method, the Endowment transfer is determined by a spending rule which is designed to provide stable annual spending levels and to preserve the real value of the endowment portfolio over time. The spending rule adopted by the College is a ‘Constant Growth with Cap and Floor’ rule under which the transfer from the Endowment for a particular year is the previous year’s transfer increased by CPI+1.0% (2020: RPI‐0.5%), subject to a minimum payout of 2.5% (2020: 2.5%) and a maximum payout of 3.5% (2020: 3.5%) of a trailing 3 year average Endowment value. The target spending rate is 3.0%, which reflects long‐run expected real returns given the College’s asset allocation and long‐run expected College inflation. However, the actual spending rate in any year will depend on the results of the spending rule and will therefore vary from the 3.0% target rate. The spending rule provides for the transfer to be adjusted to reflect additions to the Endowment through donations. The College first adopted the Total Return approach to accounting for permanent funds in the year ended 30 June 2008. The breakdown of endowment funds between original capital and unapplied total return is shown in note 16.

Accommodation, catering and conferences income

Income received in relation to the supply of accommodation and catering and conferences income is recognised in the period in which the related goods or services are delivered.

Other Income

Income is received from a range of activities including choir engagements and alumni events and other services rendered. Income is recognised in the period in which the related goods or services are delivered.

Grant income

Grant income is recognised within the Consolidated Statement of Comprehensive Income and Expenditure when the College is entitled to the income and performance related conditions have been met.

Statement of Principal Accounting Policies

INVESTMENT COSTS

Investment costs, associated predominantly with the management of the College’s property and securities portfolios and its investment subsidiaries, are included in the Consolidated Statement of Comprehensive Income and Expenditure in the year to which they relate.

FOREIGN CURRENCY TRANSLATION

Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at year‐end rates or, where there are related forward foreign‐exchange contracts, at contract rates. The resulting exchange differences are dealt with in the determination of comprehensive income and expenditure for the financial year.

TANGIBLE FIXED ASSETS

Land and Buildings

Land and buildings are stated at valuation on the basis of depreciated replacement cost. The valuation as at 30 June 2004 was carried out by Carter Jonas LLP, Chartered Surveyors. This valuation will not be updated and will be carried forward as the gross value to be depreciated over its expected useful economic life. It is not possible to quantify the difference between depreciation based on historic cost and depreciation based on this valuation because records of the historic cost of land and buildings were not required to be kept under the accounting regime applicable to Colleges within the University of Cambridge prior to 2004.

Where parts of a fixed asset have different useful lives, they are accounted for as separate items of fixed assets.

Costs incurred in relation to land and buildings after initial purchase or construction, and prior to valuations, are capitalised to the extent that they increase the expected future benefits to the College, and depreciated over the period of such expected future benefits.

Freehold land is not shown separately. Freehold buildings are depreciated on a straight‐line basis over their expected useful economic lives of 50 years. Freehold land is not depreciated as it is considered to have an indefinite useful life.

Buildings under construction are valued at cost, based on the value of architects’ certificates and other direct costs incurred. They are not depreciated until they are brought into use.

Land held specifically for development, investment and subsequent sale is included in investment assets at fair value.

Finance costs which are directly attributable to the construction of buildings are not capitalised as part of the cost of those assets.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable.

The cost of additions to operational property shown in the balance sheet includes the cost of land, where applicable.

Maintenance of Premises

The College has a five‐year rolling maintenance plan which is reviewed on an annual basis. The cost of routine maintenance is charged to expense within the Consolidated Statement of Comprehensive Income and Expenditure as it is incurred. The cost of major refurbishment and maintenance which restores value is capitalised when the project valuation is above the capitalisation threshold of £20,000. Expenditure capitalised is depreciated on a straight‐line basis over the expected useful economic life.

Statement of Principal Accounting Policies

Equipment

Furniture, fittings and equipment costing less than £20,000 per individual item or group of related items are written off in the year of acquisition. All other assets are capitalised at cost and depreciated on a straight‐line basis over their expected useful life as follows:

pected useful life as follows:
Furniture and equipment:	Plant and machinery	(long life)	10‐20 years
	Plant and machinery	(short life)	5 years
	Motor vehicles		5 years
	Furniture and soft furnishings		5 years
Computer equipment:	Computer network and	equipment	5 years

Depreciation methods, useful lives and residual values are reviewed at the date of preparation of each Balance Sheet.

Leased Assets

Leases in which the College assumes substantially all the risks and rewards of ownership of the leased assets are classified as finance leases. Leased assets acquired by way of finance leases are stated at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation and less impairment losses. Lease payments are accounted for as described below.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Costs in respect of operating leases are charged on a straight‐line basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term.

Heritage Assets

The College holds and conserves a number of collections, exhibits, artefacts and other assets of historical, artistic or scientific importance. Heritage assets acquired before 1 July 2007 have not been capitalised since reliable estimates of cost or value are not available on a cost benefit basis, and the volume of items and valuation issues (e.g. age, origin, veracity) mean that it is neither practical nor beneficial to identify and value them. Acquisitions since 1 July 2007 and valued at over £20k are capitalised and recognised in the Balance Sheet at cost or, in the case of donated assets, at valuation on receipt where such a cost or valuation is reasonably obtainable. Heritage assets are not depreciated since their long economic life and high residual value mean that any depreciation would not be material.

Operational assets are those that the College uses in the course of meeting its charitable purposes of education, religion, learning, and research. Once an asset has been classified as an operational asset it is not reclassified as a heritage asset.

INVESTMENTS

Investments are included in the Consolidated Balance Sheet at fair value, except for investments in subsidiary undertakings which are stated in the College’s Balance Sheet at cost and eliminated on consolidation. Investments for which no fair value is readily obtainable are carried at historical cost less any provision for impairment in their value.

Realised and unrealised capital gains and losses are recognised as increases or decreases of fair value of investment assets as appropriate within the Consolidated Statement of Income and Expenditure.

Statement of Principal Accounting Policies

INVESTMENT PROPERTY

Investment property is land and buildings held for rental income or capital appreciation rather than for use in delivering services.

The investment property portfolio is measured initially at cost and subsequently at fair value with movements recognised in the Surplus or Deficit. Investment properties are not depreciated but are revalued or reviewed annually at open market value (using the desktop valuation method) by the College's principal property advisers, Savills (L&P) Limited, with the exception of certain residential long leasehold properties which are valued by Carter Jonas LLP.

Due to the length of ownership of many of the investment properties, realised capital gains cannot be recognised with reference to historic cost.

STOCKS

Stocks are stated at the lower of cost and net realisable value after making provision for slow moving and obsolete items.

PROVISIONS

Provisions are recognised when the College has a present legal or constructive obligation as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is determined by discounting the expected future cash flows at a pre‐tax rate that reflects risks specific to the liability.

FINANCIAL INSTRUMENTS

The College has elected to adopt Sections 11 and 12 of FRS 102 in respect of the recognition, measurement and disclosure of financial instruments. Financial assets and liabilities are recognised when the College becomes party to the contractual provision of the instrument and they are classified according to the substance of the contractual arrangements entered into.

A financial asset and a financial liability are offset only when there is a legally enforceable right to set off the recognised amounts and an intention either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets

Basic financial assets include trade and other receivables, cash and cash equivalents and investments in commercial paper (i.e. deposits and bonds). These assets are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest rate method. Financial assets are assessed for indicators of impairment at each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets carried at amortised cost the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows, discounted at the asset’s original effective interest rate.

Other financial assets, including investments in equity instruments, which are not subsidiaries or joint ventures, are initially measured at fair value which is typically the transaction price. These assets are subsequently carried at fair value and changes in fair value at the reporting date are recognised in the Statement of Comprehensive Income. Where the investment in equity instruments is not publicly traded and where the fair value cannot be reliably measured, the assets are measured at cost less impairment. Investments in property or other physical assets do not constitute a financial instrument and are not included.

Statement of Principal Accounting Policies

Financial assets are de‐recognised when the contractual rights to the cash flows from the asset expire or are settled or substantially all of the risks and rewards of ownership are transferred to another party.

Financial Liabilities

Basic financial liabilities include trade and other payables, bank loans and intergroup loans. These liabilities are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost using the effective interest rate method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non‐current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest rate method.

Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequently re‐measured at their fair value at the reporting date. Changes in the fair value of derivatives are recognised in the Statement of Comprehensive Income in finance costs or finance income as appropriate, unless they are included in a hedging arrangement.

To the extent that the College enters into forward foreign exchange contracts which remain unsettled at the reporting date the fair value of the contracts is reviewed at that date. The initial fair value is measured as the transaction price on the date of inception of the contracts. Subsequent valuations are considered on the basis of the forward rates for those unsettled contracts at the reporting date. The College does not apply any hedge accounting in respect of forward foreign exchange contracts held to manage cash flow exposures of forecast transactions denominated in foreign currencies.

Financial liabilities are de‐recognised when the liability is discharged, cancelled, or expires.

TAXATION

The College is a registered charity (number 1137428). It is therefore a charity within the meaning of Section 467 of the Corporation Tax Act 2010. Accordingly, the College is exempt from taxation in respect of income or capital gains received within categories covered by section 478‐488 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

The College receives no similar exemption in respect of Value Added Tax.

The College’s subsidiaries are liable to Corporation Tax in the same way as any other commercial organisation. Due to the structure of the group, all taxable profits made by its subsidiaries are donated to the College on an annual basis under the terms of members’ resolutions.

CONTRIBUTION UNDER STATUTE G,II

The College is liable to be assessed for Contribution under the provisions of Statute G,II of the University of Cambridge. The Contribution is used to fund grants to Colleges from the Colleges Fund. The liability for the year is as advised to the College by the University based on an assessable amount derived from the value of the College’s assets as at the end of the previous financial year.

Statement of Principal Accounting Policies

PENSION COSTS

The College and its subsidiary undertakings participate in a number of pension schemes of both defined‐benefit and defined‐contribution types.

Cambridge Colleges Federated Pension Scheme

The College contributes to the Cambridge Colleges Federated Pension Scheme (“CCFPS”), which is a defined‐benefit pension scheme. Unlike the other defined‐benefit schemes (as noted below), the scheme is a federated scheme, and the College is able to identify its share of the underlying assets and liabilities.

Amounts charged to operating expenditure are the current service costs and gains and losses on settlements and curtailments. They are included as part of staff costs. Past‐service costs are recognised immediately in the Consolidated Statement of Comprehensive Income and Expenditure if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period until vesting occurs. The interest cost and the expected return on assets are shown as a net amount of other finance costs or credits to interest. Remeasurement comprising actuarial gains and losses and the return on scheme assets (excluding amounts in net interest on the net defined benefit liability) are recognised immediately within Other Comprehensive Income in the Consolidated Statement of Comprehensive Income and Expenditure.

The scheme is funded, with the assets of the scheme held separately from those of the College, in separate trustee administered unitised funds. The scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The resulting defined‐benefit liability forms part of the net pension liability presented after other net assets on the face of the Balance Sheet.

Universities Superannuation Scheme

The College participates in Universities Superannuation 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 assets are not attributed to individual institutions and a scheme‐wide contribution rate is set. The College 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 College therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme. Since the institution has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the institution recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) with related expenses being recognised through the profit and loss account.

Church of England Funded Pension Scheme

The College participates in the Church of England Funded Pensions Scheme for stipendiary clergy. This scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Employer and the other participating employers.

Each participating employer in the scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi‐employer scheme as described in section 28 of FRS 102. This means it is not possible to attribute the Scheme’s assets and liabilities to specific employers and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pension costs charged to the Consolidated Statement of Comprehensive Income and Expenditure in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficit contributions. The College recognises a liability for the present value of agreed deficit contributions payable.

Statement of Principal Accounting Policies

Teachers’ Pension Scheme

The College participated in the Teachers’ Pension Scheme (“TPS”) which is a statutory, contributory, final‐salary scheme. The TPS is an unfunded scheme; therefore, the scheme is accounted for as if it were a defined‐contribution pension scheme. Contributions are charged to the Consolidated Statement of Comprehensive Income and Expenditure as they are incurred. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the Balance Sheet. The College exited the Teachers’ Pension Scheme in April 2021.

Defined‐Contribution Pension Schemes

The College and its subsidiaries also contribute to a number of defined‐contribution pension schemes. For defined‐ contribution schemes the amount charged to the Consolidated Statement of Comprehensive Income and Expenditure in respect of pension costs and other post‐retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the Consolidated Balance Sheet.

EMPLOYMENT BENEFITS

Short term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the College. Any unused benefits are accrued and measured as the additional amount the College expects to pay as a result of the unused entitlement.

FUNDS AND RESERVES

The RCCA format requires the College to distinguish between Endowments, Restricted Reserves and Unrestricted Reserves.

Endowments

Where the College receives donations that are to be held in perpetuity, these are credited to endowment funds. Endowment funds are subdivided into:

Restricted endowments: where the College can spend the income from the fund on expenditure that meets the fund's objectives.

Unrestricted endowments: where the College can spend the income from the fund on any activity of the College.

Restricted Reserves

Restricted reserves include balances in respect of which the donor has designated a specific purpose and therefore the College is restricted in the use of these funds.

Unrestricted Reserves

Funds that are neither Endowments nor Restricted Reserves are classed as unrestricted reserves. The College's unrestricted reserves are identified under the following two headings:

Revaluation Reserve, relating to the unrealised gains on the revaluation of tangible fixed assets; and

Unrestricted Income and Expenditure Reserve, relating to all other reserves not included above.

Statement of Principal Accounting Policies

Corporate Capital

The College’s unrestricted funds include the College’s Corporate Capital, which has certain features of a permanent unrestricted endowment (in that the majority is invested in perpetuity to provide an income to support the College’s charitable activities) and certain features of a permanent reserve (in that it is established practice that Cambridge Colleges can borrow against their Corporate Capital to invest in operational property). Corporate Capital is predominantly invested in the College’s Endowment, but a portion is invested in operational assets. The exact split between these two components varies over time. The portion of the College’s Corporate Capital that is invested in the Endowment is included in permanent unrestricted endowments, while the portion that is invested in operational assets is included in the unrestricted income and expenditure reserve, and any movement during the year is represented by a reserves transfer.

ST JOHN'S COLLEGE SCHOOL

The School is viewed as a separate activity of the College. Control of its reserves has been delegated to its Board of Governors. Its reserves, including those representing its tangible fixed assets, are included in general reserves (except for its prize and trust funds which, being restricted rather than designated funds, are treated on an individual basis). On 10 September 2021, the activities of the School were transferred into a company limited by guarantee, St John’s College School, Cambridge which is a separately registered charity. The College is the sole member of the company and the School Governors are the directors and the charity trustees.

Consolidated Statement of Comprehensive Income and Expenditure

Unrestricted £000 4,614 4,136 7,085 49 12,661 810	Restricted £000 ‐ ‐ ‐ (2) 2,107 ‐	Unrestricted £000 4,583 5,499 6,583 106 12,295 934	Restricted £000 ‐ ‐ ‐ 69 1,935 ‐	2020 Endowment Total £000 £000 ‐ 4,583 ‐ 5,499 ‐ 6,583 21,640 21,815 (14,230) ‐ ‐ 934
29,355	2,105	30,000	2,004	7,410 39,414
250 ‐ ‐	901 32 209	293 89 ‐	1,227 78 175	‐ 1,520 1,670 1,837 ‐ 175
250	1,142	382	1,480	1,670 3,532
29,605	3,247	30,382	3,484	9,080 42,946
10,407 13,114 6,838 1,726 174 765	3,951 174 226 156 145 190	10,508 13,716 6,859 1,958 107 722	3,800 83 146 134 89 192	‐ 14,308 ‐ 13,799 ‐ 7,005 ‐ 2,092 7,440 7,636 ‐ 914
33,024	4,842	33,870	4,444	7,440 45,754
(3,419) (3,419) 8,497	(1,595) (1,836) 6,859	(3,488) (3,577) 1,040	(960) (1,213) 819	1,640 (2,808) (30) (4,820) (2,782) (923)
5,078 ‐ 2,364	5,264 ‐ ‐	(2,448) ‐ (3,536)	(141) ‐ ‐	(1,142) (3,731) ‐ ‐ ‐ (3,536)
7,442	5,264	(5,984)	(141)	(1,142) (7,267)

Summary Consolidated Statement of Comprehensive Income and Expenditure

Year ended 30 June Note Income Academic fees and charges 1 Residences, catering and conferences 2 School Income Investment income 3d Other income Total income before donations and endowments Donations New endowments Other capital grants for assets Total income from donations and new endowments Total income Expenditure Education 4 Residences, catering and conferences 5 School expenditure Other expenditure Investment costs 3c Contribution under Statute G,II Total expenditure 6a/b Surplus/Deficit before other gains and losses Deficit before other gains and losses excluding new endowments & capital grants Gain/(loss) on investments 3e Surplus/(deficit) for the year Other comprehensive income Unrealised surplus on revaluation of fixed assets Actuarial gain/(loss) in in respect of pension schemes 15 Total comprehensive income for the year	2021 Total £000 4,614 4,136 7,085 22,275 810 38,920 1,151 8,807 209 10,167 49,087 14,358 13,288 7,064 1,882 7,819 955 45,366 3,721 (5,295) 71,397 75,118 ‐ 2,364 77,482	2020 Total £000 4,583 5,499 6,583 21,815 934
		39,414
		1,520 1,837 175
		3,532
		42,946
		14,308 13,799 7,005 2,092 7,636 914
		45,754
		(2,808) (4,820) (923)
		(3,731) ‐ (3,536)
		(7,267)

Additional information:

Total income and deficit before other gains and losses excluding new endowments & capital grants as stated above do not include the element of endowment fund distributions funded out of long‐term capital growth for funds that are classified as expendable endowments or general reserves. The corresponding figures including this element are:

		2021	2020
		£000	£000
Total income on a distribution basis (as defined on Page 11 of the Trustees’ Report)	3g	51,373	44,963
Deficit before other gains and losses excluding new endowments & capital grants on a distribution basis		(3,009)	(2,803)

Statement of Changes in Reserves

Consolidated

Consolidated
Balance at 1 July 2020 Change in classification of funds Surplus for the year Other comprehensive income Transfers between reserves Balance at 30 June 2021 Balance at 1 July 2019 Change in classification of funds Deficit for the year Other comprehensive income Transfers between reserves Balance at 30 June 2020 College Balance at 1 July 2020 Change in classification of funds Surplus for the year Other comprehensive income Transfers between reserves Balance at 30 June 2021 Balance at 1 July 2019 Change in classification of funds Deficit for the year Other comprehensive income Transfers between reserves Balance at 30 June 2020	Income and expenditure Unrestricted Restricted £000 £000 238,961 38,441 ‐ ‐ 5,078 5,264 2,364 125 (125)	Income and expenditure		reserve Endowment £000 541,304 ‐ 64,776 ‐	Revaluation reserve Total £000 £000 8,724 827,430 ‐ ‐ ‐ 75,118 ‐ 2,364 ‐ ‐
			Restricted £000 38,441 ‐ 5,264 (125)

		246,528	43,580	606,080		8,724 904,912
	Income and expenditure Unrestricted Restricted £000 £000 244,935 38,592 (2,448) (141) (3,536) 10 (10)	Income and expenditure		reserve Endowment £000 542,446 (1,142) ‐	Revaluation reserve Total £000 £000 8,724 834,697 ‐ (3,731) ‐ (3,536) ‐ ‐
			Restricted £000 38,592 (141) (10)

		238,961	38,441	541,304		8,724 827,430
	Income and expenditure Unrestricted Restricted £000 £000 238,860 38,441 ‐ ‐ 5,145 5,264 2,364 ‐ 125 (125) ‐ ‐	Income and expenditure		reserve Endowment £000 541,278 ‐ 64,480 ‐ ‐ ‐	Revaluation reserve Total £000 £000 8,724 827,303 ‐ ‐ ‐ 74,889 ‐ 2,364 ‐ ‐ ‐ ‐
			Restricted £000 38,441 ‐ 5,264 ‐ (125) ‐

		246,494	43,580	605,758		8,724 904,556
	Income and expenditure Unrestricted Restricted £000 £000 244,873 38,592 ‐ (2,487) (141) (3,536) ‐ 10 (10)	Income and expenditure		reserve Endowment £000 542,655 (1,377) ‐ ‐	Revaluation reserve Total £000 £000 8,724 834,844 ‐ ‐ ‐ (4,005) ‐ (3,536) ‐ ‐
			Restricted £000 38,592 (141) ‐ (10)
	238,860		38,441	541,278		8,724 827,303

The notes numbered 1 to 28 form part of these Financial Statements

Consolidated Balance Sheet

As at 30 June Note Non‐current Assets Tangible fixed assets 8 Heritage assets Investments 9 Total non‐current assets Current Assets Stock 10 Trade and other receivables 11 Cash and cash equivalents 12 Total current assets Current Liabilities Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 14 Net assets excluding pension liability Net pension liability 15 Net assets including pension liability Restricted reserves Income and expenditure reserve – endowment reserve 16 Income and expenditure reserve – restricted reserve 17 Unrestricted Reserves Income and expenditure reserve – unrestricted Revaluation reserve Total Reserves	2021 £’000 244,947 530 669,097 914,574 617 12,095 47,679 60,391 (12,090) 48,301 962,875 (35,972) 926,903 (21,991) 904,912 606,080 43,580 649,660 246,528 8,724 255,252 904,912	2020 £’000 246,140 530 567,558
		814,228 730 14,058 69,731
		84,519 (11,021)
		73,498
		887,726 (36,732)
		850,994 (23,564)

		827,430
		541,304 38,441
		579,745 238,961 8,724
		247,685
		827,430

These Financial Statements were approved by the College Council and authorised for issue on 18[th] November 2021 and signed on their behalf by:

Heather Hancock Chris Ewbank Master Senior Bursar

The notes numbered 1 to 28 form part of these Financial Statements

College Balance Sheet

As at 30 June Note Non‐current Assets Tangible fixed assets 8 Heritage assets Investments 9 Total non‐current assets Current Assets Stock 10 Trade and other receivables 11 Cash and cash equivalents 12 Total current assets Current Liabilities Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 14 Net assets excluding pension liability Net pension liability 15 Net assets including pension liability Restricted reserves Income and expenditure reserve – endowment reserve 16 Income and expenditure reserve – restricted reserve 17 Unrestricted Reserves Income and expenditure reserve – unrestricted Revaluation reserve Total Reserves	2021 £’000 245,197 530 673,808 919,535 559 9,492 45,439 55,490 (12,506) 42,984 962,519 (35,972) 926,547 (21,991) 904,556 605,758 43,580 649,338 246,494 8,724 255,218 904,556	2020 £’000 246,390 530 572,604
		819,524 586 12,838 66,128
		79,552 (11,477)
		68,075
		887,599 (36,732)
		850,867 (23,564)
		827,303
		541,278 38,441
		579,719 238,860 8,724
		247,584
		827,303

The College recorded a surplus for the financial year of £74,888k (2020: £4,005k deficit) and other comprehensive gains of £2,364 (2020: £3,536k losses).

These Financial Statements were approved by the College Council and authorised for issue on 18[th] November 2021 and signed on their behalf by:

Heather Hancock Chris Ewbank Master Senior Bursar

The notes numbered 1 to 28 form part of these Financial Statements

Consolidated Cash Flow Statement

Consolidated Cash Flow Statement
Year to 30 June Note Net cash outflow from operating activities 19 Cash flows from investing activities 20 Cash flows from financing activities 21 Decrease in cash and cash equivalents in the year Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year 12	2021 £’000 (4,062) (16,317) (1,673) (22,052) 69,731 47,679	2020 £’000 (15,216) 8,858 (1,820)
		(8,178) 77,909
		69,731

The notes numbered 1 to 28 form part of these Financial Statements

Notes to the financial statements

Notes to the Financial Statements

Notes to the Financial Statements
1. ACADEMIC FEES AND CHARGES College Fees Fee income paid on behalf of undergraduates at the regulated undergraduate fee rate (per capita fee £4,625/£4,500 (2020: £4,625/£4,500)) Unregulated undergraduate fee income (per capita fee £9,300 (2020: £8,700)) Fee income received at the Graduate fee rate (per capita fee £4,069 (2020: £3,911)) Other Educational income Total 2. ACCOMMODATION, CATERING AND CONFERENCES INCOME Accommodation: College Members Conferences Catering: College Members Conferences Total 3. ENDOWMENT RETURN AND INVESTMENT INCOME 3a ANALYSIS OF INCOME Income from: Property Securities Cash St John’s Innovation Centre Limited Aquila Investments Limited Lomas Developments Limited Total Income allocated to: Permanent funds accounted for on a Total Return basis 3d Permanent funds accounted for on a Standard Income basis Expendable funds Total 3b ANALYSIS OF GAINS ON INVESTMENTS Capital gains from: Property Securities 9 Gains on cash and cash equivalents	2021 £’000 2020 £’000 2,608 2,570 671 680 911 966
	4,190 4,216 424 367
	4,614 4,583
	2021 £’000 2020 £’000 3,861 3,769 ‐ 485 272 498 3 747
	4,136 5,499
	2021 £’000 2020 £’000 12,871 15,296 1 409 ‐ 25 1,266 1,246 594 349 ‐ 4
	14,732 17,329
	14,678 17,140 7 14 47 175
	14,732 17,329
	2021 £’000 2020 £’000 19,892 (3,423) 63,048 5,205
	82,625 1,782 (4,000) 1,781
	78,940 3,563

Notes to the financial statements

3. ENDOWMENT RETURN AND INVESTMENT INCOME (continued) Capital gains allocated to: Permanent funds accounted for on a Total Return basis 3f Permanent funds accounted for on a Standard Income basis Expendable funds 3c ANALYSIS OF INVESTMENT COSTS Investment property portfolio costs Trading costs of St John's Innovation Centre Limited Trading costs of Aquila Investments Limited Trading costs of Lomas Development Limited Investment consultant, custodian/reporting and cash management fees Securities portfolio management fees Other securities portfolio operating costs Total Costs allocated to: Permanent funds accounted for on a Total Return basis 3d Permanent funds accounted for on a Standard Income basis Expendable funds Total 3d RECONCILIATION OF INVESTMENT INCOME INCLUDED IN THE STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE Investment costs allocated to permanent funds accounted for on a total return basis 3c Total return on permanent funds accounted for on a total return basis transferred to income and expenditure Less: investment income allocated to permanent funds accounted for on a total return basis 3a Endowment drawdown from Unapplied Total Return added to Investment Income Plus: Investment Income 3a Total Investment Income included in the Consolidated Statement of Comprehensive Income and Expenditure 3e RECONCILIATION OF GAINS ON INVESTMENTS INCLUDED IN THE STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE Total capital gains on investments 3b Less: Endowment drawdown from Unapplied Total Return added to Investment Income 3d Gains on investments for year included within Statement of Comprehensive Income and Expenditure	2021 £’000 2020 £’000 61,893 1,397 1,691 307 15,356 1,859
	78,940 3,563
	2021 £’000 2020 £’000 4,688 4,933 1,479 1,519 271 172 10 9 ‐ 121 1,249 756 122 126
	7,819 7,636
	7,465 7,412 35 28 319 196
	7,819 7,636
	2021 £’000 2020 £’000 7,465 7,412 14,756 14,214 (14,678) (17,140)
	7,543 4,486 14,732 17,329
	22,275 21,815
	2021 £’000 2020 £’000 78,940 3,563 (7,543) (4,486)
	71,397 (923)

Notes to the financial statements

3. ENDOWMENT RETURN AND INVESTMENT INCOME (continued) 3f SUMMARY OF TOTAL RETURN OF PERMANENT FUNDS ACCOUNTED FOR ON A TOTAL RETURN BASIS

3f SUMMARY OF TOTAL RETURN OF PERMANENT FUNDS ACCOUNTED FOR ON A TOTAL RETURN BASIS Allocated investment income 3a Apportioned gains on investments 3b Allocated investment costs 3c Total return for year Total return transferred to income and expenditure reserve Unapplied total return for year included within Statement of Comprehensive Income and Expenditure 18 3g RECONCILIATION OF INCOME ON THE DISTRIBUTION BASIS TO INCOME INCLUDED IN THE STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE Total Income included in the Consolidated Statement of Comprehensive Income and Expenditure on a Total Return basis Transfer to income of total return from expendable endowments and general reserves Total Income on the distribution basis 4. EDUCATION EXPENDITURE Teaching Tutorial Admissions Research Scholarships and awards Other educational facilities Total 5. ACCOMMODATION, CATERING AND CONFERENCES EXPENDITURE Accommodation: College Members Conferences Catering: College Members Conferences Total	2021 £’000 2020 £’000 14,678 17,140 61,893 1,397 (7,465) (7,412)
	69,106 11,125 (14,756) (14,214)
	54,350 (3,089)
	2021 £’000 2020 £’000 49,087 42,946 2,286 2,017
	51,373 44,963
	2021 £’000 2020 £’000 5,084 5,110 2,039 1,942 784 810 1,798 1,913 4,158 4,074 495 459
	14,358 14,308
	2021 £’000 2020 £’000 10,340 10,021 6 410 2,901 2,971 41 397
	13,288 13,799

Notes to the financial statements

6. ANALYSIS OF EXPENDITURE BY ACTIVITY

Staff Costs (note 7) £’000 6,852 5,897 4,869 885 1,118 ‐	Other Operating Expenses £’000 6,049 2,148 1,618 997 6,607 955	Depreciation (note 8) £’000 1,220 4,390 385 ‐ 9 ‐	Interest and other finance costs £’000 2021 Total £’000 237 14,358 853 13,288 192 7,064 ‐ 1,882 85 7,819 ‐ 955


19,621	18,374	6,004	1,367 45,366

6a 2021 Expenditure

Expenditure includes fundraising costs of £631k.

Staff Costs (note 7) £’000 6,512 5,948 4,875 848 1,016 ‐	Other Operating Expenses £’000 6,306 2,493 1,555 1,244 6,448 914	Depreciation (note 8) £’000 1,203 4,328 376 ‐ 15 ‐	Interest and other finance costs £’000 2020 Total £’000 287 14,308 1,030 13,799 199 7,005 ‐ 2,092 157 7,636 ‐ 914


19,199	18,960	5,922	1,673 45,754

6b 2020 Expenditure

Expenditure includes fundraising costs of £645k.

6c Auditors’ remuneration Other operating expenses include: Audit fees payable to the College’s external auditor For the audit of the College For the audit of subsidiary companies Other advisory fees payable to the College’s external auditor Total fees payable to the College’s external auditor	2021 £’000 2020 £’000 66 64 19 19 2 4
	87 87

Amounts stated above include unrecoverable VAT

Notes to the financial statements

7. STAFF COSTS Staff Costs Salaries National insurance Pension costs Total		College Fellows £’000 2,725 259 429	Other Academic £’000 308 16 30	Non‐ Academic £’000 11,985 1,115 2,754	2021 Total £’000 2020 Total £’000 15,018 14,766 1,390 1,395 3,213 3,038
		3,413	354	15,854	19,621 19,199

In addition to the costs shown above, the College paid £220k (2020: £195k) in the year for staff medical cover.

Staff Numbers Stipendiary Fellows Average staff numbers (full‐time equivalents) Total The Governing Body of the College, comprising all Fello		College Fellows 102 ‐	Other Academic ‐ 11	Non‐ Academic 348		2021 Total 102 359	2020 Total 98 365
		102	11	348		461	463
		ws, at 30 June was				2021 number 154	2020 Number 155

The Governing Body of the College, comprising all Fellows, at 30 June was

Average staff numbers (full‐time equivalents) include 114 (2020: 107) School staff and 22 (2020: 24) staff employed by the St John’s Innovation Centre.

The number of employees of the College and its subsidiary undertakings who received remuneration in excess of £100,000 were as follows:

Between £100,000 and £110,000 Between £110,001 and £120,000 Between £120,001 and £130,000 Between £130,001 and £140,000 Between £140,001 and £150,000 Between £150,001 and £160,000 Between £160,001 and £170,000 Between £170,001 and £180,000 Between £180,001 and £190,000 Between £190,001 and £200,000	2021 number 4 3 1 1 1 1 1 ‐ ‐ 1	2020 number
		4 1 3 ‐ 3 ‐ ‐ ‐ ‐ 1

Remuneration includes salary and employer’s pension contributions for current service, plus any taxable benefits either paid, payable or provided, gross of any salary sacrifice arrangements. Remuneration does not include employer’s pension deficit reduction contributions, which are paid to reduce the deficit in a pension scheme as a whole and do not relate to individual employees, or employer’s National Insurance contributions.

This is a departure from the RCCA, which includes employer’s National Insurance contributions in remuneration. The Trustees believe that the disclosure above more accurately represents the remuneration employees receive in exchange for their services than the disclosure required by the RCCA, which reflects the cost of employment but not remuneration.

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College and comprise the College Council. The Trustees of the College are its key management personnel. The remuneration of Trustees is disclosed in note 27.

Notes to the financial statements

8. TANGIBLE FIXED ASSETS

Freehold land and buildings £’000 313,230 3,775 ‐ (45) 660	Furniture and equipment £’000 4,055 79 ‐ ‐ ‐	Computer equipment £’000 2,930 340 ‐ (1) ‐	2021 Total £’000 2020 Total £’000 320,215 317,644 4,194 2,811 ‐ ‐ (46) (240) 660 ‐
317,620	4,134	3,269	325,023 320,215
68,677 5,459 ‐ ‐	3,564 130 ‐ (3)	1,834 415 ‐ ‐	74,075 68,388 6,004 5,922 ‐ ‐ (3) (235)
74,136	3,691	2,249	80,076 74,075
243,484	443	1,020	244,947 246,140
244,553	491	1,096	246,140 249,256

Included in the cost of freehold land and buildings, are assets under the course of construction to the value of £2,211k (2020: £1,924k).

Freehold land and buildings £’000 313,630 3,775 ‐ (45) 660	Furniture and equipment £’000 3,884 79 ‐ ‐ ‐	Computer equipment £’000 2021 Total £’000 2020 Total £’000 2,901 320,415 317,844 340 4,194 2,811 ‐ ‐ ‐ (1) (46) (240) ‐ 660 ‐
318,020	3,963	3,240 325,223 320,415
68,767 5,467 ‐ ‐	3,459 123 ‐ (3)	1,799 74,025 68,345 414 6,004 5,915 ‐ ‐ ‐ ‐ (3) (235)
74,234	3,579	2,213 80,026 74,025
243,786	384	1,027 245,197 246,390
244,863	425	1,102 246,390 249,499

Freehold land and buildings comprise the operational buildings and site of the College. Included in the cost of freehold land and buildings, are assets under the course of construction to the value of £2,211k (2020: £1,924k).

The insured value of freehold buildings as at 30 June 2021 was £318,507k (2020: £337,128k).

The cost to the College of freehold buildings includes the surplus of £400k on past sales of buildings to the College recorded in the accounts of Aquila Investments Limited, a subsidiary undertaking, which is eliminated from the cost to the group on consolidation.

Notes to the financial statements

Heritage Assets

The College holds and conserves certain collections, artefacts and other assets of historical, artistic or scientific importance. As stated in the statement of principal accounting policies, heritage assets acquired since 1 July 2007 have been capitalised. However, the majority of assets held in the College’s collections were acquired prior to this date. As reliable estimates of cost or valuation are not available for these on a cost‐benefit basis, they have not been capitalised. As a result, the total included in the balance sheet is partial.

The value of heritage assets acquired by donation during the year and the preceding eight years was £60k, received in the year ended 30 June 2013. All the above recognised Heritage Assets were donated to the College rather than purchased by the College. Heritage assets are books gifted to the College.

9. INVESTMENTS

9. INVESTMENTS
Balance at beginning of year Additions Disposals Gain Transfers from/(to) College Operations Balance at end of year Represented by: Property Securities Investments in subsidiary undertakings 10. STOCKS Goods for resale Other stocks Total stocks		Group College 2021 £’000 2020 £’000 2021 £’000 2020 £’000 567,558 573,186 572,604 578,457 42,351 60,100 42,220 60,007 (23,092) (67,510) (21,964) (67,511) 82,940 1,782 81,608 1,651 (660) ‐ (660) ‐
		669,097 567,558 673,808 572,604
		344,835 329,224 340,230 324,618 324,262 238,334 324,262 238,334 ‐ ‐ 9,316 9,652
		669,097 567,558 673,808 572,604
		Group College 2021 £’000 2020 £’000 2021 £’000 2020 £’000 613 697 559 558 4 33 ‐ 28
		617 730 559 586

The Council considers that there is no material difference between the book value of stocks and their replacement cost.

11. TRADE AND OTHER RECEIVABLES

Amounts due after one year: Loans to Waterbeach Development Company LLP Other trade debtors Amounts due within one year: Net sums due from members of the College Amounts due from subsidiary undertakings Other trade debtors Other taxes Prepayments Accrued income	Group College 2021 £’000 2020 £’000 2021 £’000 2020 £’000 2,581 2,210 ‐ ‐ 4,024 5,455 4,024 5,455 162 103 162 103 ‐ ‐ 782 1,575 2,326 4,085 2,045 3,899 72 42 41 31 1,328 621 1,032 338 1,602 1,542 1,406 1,437
	12,095 14,058 9,492 12,838

Notes to the financial statements

12. CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS
Short‐term money market deposits Current accounts Total	Group College 2021 £’000 2020 £’000 2021 £’000 2020 £’000 8,318 7,365 8,318 7,365 39,361 62,366 37,121 58,763
	47,679 69,731 45,439 66,128

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors Members of the College Amounts due to subsidiary undertakings Contribution under Statute G,II Bank loans due within one year Other creditors Other taxation and social security Accruals and deferred income Total	Group College 2021 £’000 2020 £’000 2021 £’000 2020 £’000 1,377 806 1,047 712 109 24 109 24 ‐ ‐ 899 896 955 914 955 914 760 722 760 722 4,365 3,268 4,365 3,265 735 705 707 673 3,789 4,582 3,664 4,271
	12,090 11,021 12,506 11,477

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Bank loans Bank loans repayable Between two and five years After five years Total borrowings	Group and College 2021 £’000 2020 £’000 35,972 36,732
	Group and College 2021 £’000 2020 £’000 23,462 23,290 12,510 13,442
	35,972 36,732

In 2006, the College entered into an unsecured bank loan for £20 million, repayments on this started in the 2016‐17 year and the loan has an interest rate fixed at 5.16% until June 2036. In 2018, the College entered into an unsecured revolving credit facility for up to £30 million, of which £20m was drawn down at 30 June 2021 (2020: £20m); this facility has a five year term and a floating interest rate.

Notes to the financial statements

15. PENSION LIABILITIES (NOTE 26)

Balance at beginning of year Movement in year: Current service cost including life assurance Changes in plan assumptions Contributions Other finance cost Actuarial (gain)/loss recognised in the Statement of Consolidated Income and Expenditure Balance at end of year Balance attributable to: Cambridge Colleges’ Federated Pension Scheme Universities Superannuation Scheme Church of England Funded Pensions Scheme Balance at end of year	Group and College 2021 £’000 2020 £’000 23,564 19,359 2,266 2,071 ‐ ‐ (1,818) (1,830) 343 428 (2,364) 3,536
	21,991 23,564
	20,950 22,436 1,037 1,120 4 8
	21,991 23,564

16. ENDOWMENTS Group Balance at beginning of year: Capital Unapplied Total Return New endowments received Investment Income Expenditure Reclassification of funds Increase in market value of investments Balance at end of year Comprising: Capital Unapplied Total Return Analysed by Primary Purpose: Chapel/Choir Education Field Sports Library LMBC Research Scholarship/Awards School Other General Endowments Total		Unrestricted Permanent £’000 164,716 277,690	Unrestricted Permanent £’000 164,716 277,690	Restricted Permanent £’000 2021 Total £’000 2020 Total £’000 42,905 207,621 205,674 55,993 333,683 336,772

			442,406 392 14,673 (19,712) ‐ 43,578	98,898 541,304 542,446 8,383 8,775 1,670 12 14,685 17,154 (2,556) (22,268) (21,670) ‐ ‐ ‐ 20,006 63,584 1,704
			481,337	124,743 606,080 541,304
			164,710 316,627	50,752 215,462 207,621 73,991 390,618 333,683
			481,337	124,743 606,080 541,304
			‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 481,337	1,792 1,792 1,497 11,046 11,046 9,408 7,412 7,412 4,105 2,030 2,030 1,739 1,552 1,552 1,305 19,938 19,938 15,882 71,085 71,085 56,531 896 896 751 8,992 8,992 7,680 ‐ 481,337 442,406
			481,337	124,743 606,080 541,304

Notes to the financial statements

16. ENDOWMENTS (continued)

College Balance at beginning of year: Capital Unapplied Total Return New endowments received Investment Income Expenditure Reclassification of funds Increase in market value of investments Balance at end of year Comprising: Capital Unapplied Total Return Analysed by Primary Purpose: Chapel/Choir Education Field Sports Library LMBC Research Scholarship/Awards School Other General Endowments Total		Unrestricted Permanent £’000 164,716 277,664	Unrestricted Permanent £’000 164,716 277,664	Restricted Permanent £’000 2021 Total £’000 2020 Total £’000 42,905 207,621 205,674 55,993 333,657 336,981

			442,380 392 12,863 (16,884) ‐ 42,264	98,898 541,278 542,655 8,383 8,775 1,670 12 12,875 15,604 (2,556) (19,440) (20,225) ‐ ‐ ‐ 20,006 62,270 1,574
			481,015	124,743 605,758 541,278
			164,710 361,305	50,752 215,462 207,621 73,991 390,296 333,657
			481,015	124,743 605,758 541,278
			‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 481,015	1,792 1,792 1,497 11,046 11,046 9,408 7,412 7,412 4,105 2,030 2,030 1,739 1,552 1,552 1,305 19,938 19,938 15,882 71,085 71,085 56,531 896 896 751 8,992 8,992 7,680 ‐ 481,015 442,380
			481,015	124,743 605,758 541,278

Notes to the financial statements

17. RESTRICTED RESERVES

Group and College Balance at beginning of year New grants New donations New endowments Investment income Capital grants utilised Expenditure funded from restricted funds Gains on investments Reclassification of funds Transfer of Unspent Income to Endowment Balance at end of year Analysed by Primary Purpose: Chapel/Choir Education Library Maintenance Research Scholarship/Awards School Capital expenditure Other Total		Capital Grants £’000 165 209 ‐ ‐ ‐ (125) ‐ ‐ ‐ ‐	Other Restricted Funds £’000 2021 Total £’000 2020 Total £’000 38,276 38,441 38,592 ‐ 209 175 901 901 1,227 32 32 78 2,105 2,105 2,004 ‐ (125) (10) (4,842) (4,842) (4,444) 6,859 6,859 819 ‐ ‐ ‐ ‐ ‐ ‐
		249	43,331 43,580 38,441
		‐ ‐ ‐ ‐ ‐ ‐ ‐ 249 ‐	3,135 3,135 2,679 3,653 3,653 3,130 1,629 1,629 1,398 1,159 1,159 993 234 234 198 32,225 32,225 28,500 601 601 694 ‐ 249 165 695 695 684
		249	43,331 43,580 38,441

18. MEMORANDUM OF UNAPPLIED TOTAL RETURN

Included within endowments, the following amounts represent the Unapplied Total Return of the College’s Permanent funds managed on a total return basis:

Group Note Unapplied Total Return at beginning of year 16 Unapplied total return on reclassification of funds Opening Unapplied Total Return of funds adopting total return for the first time in the year Unapplied Total Return for the year 3f Unapplied Total Return at end of year 16 College Note Unapplied Total Return at beginning of year 16 Unapplied total return on reclassification of funds Opening Unapplied Total Return of funds adopting total return for the first time in the year Unapplied Total Return for the year Unapplied Total Return at end of year 16	2021 £’000 2020 £’000 333,683 336,772 ‐ ‐ 2,585 ‐ 54,350 (3,089)
	390,618 333,683
	2021 £’000 2020 £’000 333,657 336,981 ‐ ‐ 2,585 ‐ 54,054 (3,324)
	390,296 333,657

Notes to the financial statements

19. RECONCILIATION OF CONSOLIDATED SURPLUS TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES

(Deficit)/surplus for the year Adjustment for non‐cash items Depreciation Endowment drawdown from unapplied total return Gain on investments Decrease/(increase) in operational stocks (Increase)/decrease in operational trade and other receivables (Decrease)/increase in operational creditors Pension costs less contributions payable Adjustment for investing or financing activities Net investment income Interest and other finance costs payable Loss on disposal of non‐current assets Net cash outflow from operating activities 20. CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales of non‐current fixed assets Net investment income Endowment funds (invested)/disinvested (Decrease)/increase in investment working capital (Losses) on cash and cash equivalents Payments made to acquire non‐current assets Total cash flows from investing activities 21. CASH FLOWS FROM FINANCING ACTIVITIES Interest paid Repayments of amounts borrowed Total cash flows from financing activities		2021 £’000 2020 £’000 75,118 (3,731) 6,004 5,922 (7,543) (4,486) (71,397) 923 38 ‐ (712) (5,011) (430) (902) 448 241 (6,913) (9,693) 1,282 1,516 43 5
		(4,062) (15,216)
		2021 £’000 2020 £’000 (660) ‐ 6,913 9,693 (18,599) 7,410 4,222 (7,215) (3,999) 1,781 (4,194) (2,811)
		(16,317) 8,858
		2021 £’000 2020 £’000 (951) (1,098) (722) (722)
		(1,673) (1,820)

Notes to the financial statements

22. CONSOLIDATED RECONCILIATION AND ANALYSIS OF NET DEBT

At 1 July 2020 £000 Cash flows £000 69,731 (18,053) (722) ‐ (16,732) 722 (20,000) ‐	Other non‐ cash movements £’000 ‐ (38) 38 ‐	Changes in market value and exchange rates £000 At 30 June 2021 £’000 (3,999) 47,679 ‐ (760) ‐ (15,972) ‐ (20,000)
(36,732) 722	38	‐ (35,972)
32,277 (17,331)	‐	(3,999) 10,947

23. FINANCIAL INSTRUMENTS
Financial assets Financial assets at fair value through Statement of Comprehensive income Equity investments Financial assets that are debt instruments measured at amortised cost Cash and cash equivalents Other debtors Investments in subsidiary undertakings Financial liabilities Financial liabilities measured at amortised cost Loans Trade creditors Other creditors 24. CAPITAL COMMITMENTS Capital commitments at 30 June were as follows: Authorised and contracted	Group College 2021 £’000 2020 £’000 2021 £’000 2020 £’000 324,262 238,334 324,262 238,334 47,679 69,731 45,439 66,128 10,695 13,395 8,419 12,469 ‐ ‐ 9,316 9,652
	58,374 83,126 63,174 88,249 (36,732) (37,454) (36,732) (37,454) (1,377) (806) (1,047) (712) (8,151) (7,365) (8,998) (8,035)
	(46,260) (45,625) (46,777) (46,201) 2021 £’000 2020 £’000 878 284

Notes to the financial statements

25. LEASE COMMITMENTS

Operating Lease Commitments Total future minimum lease payments under non‐cancellable operating leases at 30 June were as follows: Expiring within one year Expiring between two and five years Expiring after five years	Group College 2021 £’000 2020 £’000 2021 £’000 2020 £’000 ‐ ‐ ‐ ‐ 54 63 42 63 ‐ 16 ‐ ‐
	54 79 42 63

26. PENSION SCHEMES

The College and its subsidiary undertakings participate in four defined benefit schemes, as well as a number of defined contribution schemes.

Cambridge Colleges’ Federated Pension Scheme

The College operates a defined benefit pension plan for the College's employees who are members of the Cambridge Colleges' Federated Pension Scheme.

The liabilities of the plan have been calculated, at 30 June 2020, for the purposes of FRS 102 using a valuation system designed for the Management Committee, acting as Trustee of the Cambridge Colleges' Federated Pension Scheme, at 31 March 2020 but allowing for the different assumptions required under FRS 102 and taking fully into consideration changes in the plan benefit structure and membership since that date.

The principal actuarial assumptions at the balance sheet date were as follows:

Discount rate Increase in salaries RPI assumption CPI assumption Pension increases in payment (RPI Max 5% p.a.) Pension increases in payment (CPI Max 2.5% p.a.)	2021 % p.a. 1.80 3.10 3.40 2.60 3.40 1.95	2020 % p.a.
		1.45 2.70 3.10 2.20 3.00 1.80

The underlying mortality assumption is based upon the standard table known as S3PA on a year of birth usage with CMI_2020 future improvement factors and a long‐term rate of future improvement of 1.25% p.a., a standard smoothing factor (7.0) and no allowance for additional improvements (2020: S3PA with CMI_2019 future improvement factors and a long‐term future improvement rate of 1.25% p.a., a standard smoothing factor (7.0) and no allowance for additional improvements). This results in the following life expectancies:

Male age 65 now has a life expectancy of 21.9 years (previously 21.9 years).
Female age 65 now has a life expectancy of 24.3 years (previously 24.2 years).
Male age 45 now and retiring in 20 years has a life expectancy of 23.2 years (previously 23.2 years).
Female age 45 now and retiring in 20 years has a life expectancy of 25.7 years (previously 25.6 years).

Members are assumed to retire at their normal retirement age (65) apart from in the following indicated cases:

Members are assumed to retire at their normal retirement age (65) apart	from in the following indicated cases:
	Male	Female
Active Members – Option 1 Benefits	64	64
Deferred Members – Option 1 Benefits	63	62

Allowance has been made at retirement for non‐retired members to commute part of their pension for a lump sum on the basis of the current commutation factors in these calculations.

Notes to the financial statements

26. PENSION SCHEMES (continued)

Employee Benefit Obligations

The amounts recognised in the Balance Sheet as at 30 June are as follows:

Present value of plan liabilities Market value of plan assets Net defined benefit liability The amounts to be recognised in Profit and Loss for the year ended 30 June are as follows: Current service cost Administrative cost Interest on net defined benefit liability Loss on plan changes Total Changes in the present value of the plan liabilities for the year ended 30 June are as follows: Present value of plan liabilities at beginning of period Current service cost (including Employee contributions) Employee contributions Benefits paid Interest on plan liabilities Actuarial losses Loss on plan changes Present value of plan liabilities at end of period Changes in fair value of the plan assets for the year ended 30 June are as follows: Market value of plan assets at beginning of period Contributions paid by the College Employee contributions Benefits paid Administrative expenses paid Interest on plan assets Return on assets, less interest included in the statement of comprehensive income Market value of plan assets at end of period Actual return on plan assets The major categories of plan assets as at 30 June are as follows: Equities Bonds and cash Property Total	2021 £’000 2020 £’000 (63,095) (61,276) 42,145 38,840
	(20,950) (22,436)
	2021 £’000 2020 £’000 1,721 1,521 58 58 327 395 ‐ ‐
	2,106 1,974
	2021 £’000 2020 £’000 61,276 53,163 1,721 1,521 347 349 (1,256) (1,355) 894 1,201 112 6,397 ‐ ‐
	63,094 61,276
	2021 £’000 2020 £’000 38,840 35,716 1,278 1,297 347 349 (1,256) (1,355) (111) (106) 567 806 2,479 2,133
	42,144 38,840

	3,046 2,939
	2021 2020 48% 49% 42% 41% 10% 10%
	100% 100%

The plan has no investments in property occupied by, assets used by or financial instruments issued by the College.

Notes to the financial statements

26. PENSIONS SCHEMES (continued)

Analysis of the re‐measurement of the net defined benefit liability recognised in Other Comprehensive Income (OCI) for the year ended 30 June are as follows:

the year ended 30 June are as follows:
Return on assets, less interest included in Profit and Loss Expected less actual plan expenses Experience gains and losses arising on plan liabilities Changes in assumptions underlying the present value of plan liabilities Remeasurement of net defined benefit liability recognised in Other Comprehensive Income Movements in net defined benefit liability during the year ended 30 June are as follows: Net defined benefit liability at beginning of the year Recognised in Statement of Comprehensive Income Contributions paid by the College Actuarial loss recognised in other comprehensive income Net defined benefit liability at the end of the year	2021 £’000 2020 £’000 2,479 2,133 (53) (48) (709) (489) 597 (5,908)
	2,314 (4,312)
	2021 £’000 2020 £’000 (22,436) (17,447) (2,106) (1,974) 1,278 1,297 2,314 (4,312)
	(20,950) (22,436)

Funding Policy

Actuarial valuations are carried out every three years on behalf of the Management Committee, acting as the Trustee of the Scheme, by a qualified independent actuary. The actuarial assumptions underlying the funding valuation are different to those adopted under FRS 102.

The last such valuation was as at 31 March 2020. This showed that the plan's assets were insufficient to cover the liabilities on the funding basis. A Recovery Plan has been agreed with the College, which commits the College to paying contributions to fund the shortfall. These deficit reduction contributions are incorporated into the plan’s Schedule of Contributions dated 21 May 2021 and are as follows:

Annual contributions of not less than £401,899 p.a. payable for the period to 30 June 2021; and
Annual contributions of not less than £605,600 p.a. payable for the period from 1 July 2021 to 31 March 2030

These payments are subject to review following the next funding valuation, as at 31 March 2023.

Universities Superannuation Scheme

The latest available complete actuarial valuation of the Retirement Income Builder is at 31 March 2020 (the valuation date), which was carried out using the projected unit method. As the 2020 valuation was completed after 30 June 2021, the provision included in the accounts reflects the outcome of the previous actuarial valuation as at 31 March 2018.

Since the institution cannot identify its share of USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.

The 2018 valuation was the fifth valuation for the scheme under the scheme‐specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £63.7 billion and the value of the scheme’s technical provisions was £67.3 billion indicating a shortfall of £3.6 billion and a funding ratio of 95%.

Notes to the financial statements

26. PENSIONS SCHEMES (continued)

The key financial assumptions used in the 2018 valuation are described below. More detail is set out in the Statement of Funding Principles.

Pension increases (CPI) Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves, less 1.3% p.a. Discount rate (forward rates) Years 1‐10: CPI + 0.14% reducing linearly to CPI ‐ 0.73% Years 11‐20: CPI + 2.52% reducing linearly to CPI + 1.55% by year 21 Years 21 +: CPI + 1.55%

The main demographic assumption used relates to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2018 actuarial valuation. The mortality assumptions used in these figures are as follows:

Mortality base table

2018 Valuation Pre‐retirement: 71% of AMC00 (duration 0) for males and 112% of AFC00 (duration 0) for females.

Post retirement:

97.6% of SAPS S1NMA “light” for males and 102.7% of RFV00 for females.

Future improvements to mortality

CMI_2017 with a smoothing parameter of 8.5 and a long term improvement rate of 1.8% p.a. for males and 1.6% p.a. for females.

The current life expectancies on retirement at age 65 are:

The current life expectancies on retirement at age 65 are:
	2021	2020
	years	years
Males currently aged 65	24.6	24.4
Females currently aged 65	26.1	25.9
Males currently aged 45	26.6	26.3
Females currently aged 45	27.9	27.7

A new deficit recovery plan was put in place as part of the 2018 valuation, which requires payment of 2% of salaries over the period 1 October 2019 to 30 September 2021 at which point the rate will increase to 6%, payable until 31 March 2028. The 2021 deficit recovery liability reflects this plan. The provision figures have been produced using the following assumptions:

Discount rate Pensionable salary growth	2021 % p.a. 0.87 2.46	2020 % p.a. 1.45 2.64

Notes to the financial statements

26. PENSION SCHEMES (continued)

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below.

Balance sheet liability at 1 July Deficit contributions paid Interest cost Remaining change to the balance sheet liability Balance sheet liability at 30 June*	2021 £’000 2020 £’000 1,120 1,893 (50) (39) 17 42 (50) (776)
	1,037 1,120

Comprises change in agreed deficit recovery plan and change in discount rate between year ends.

The total charge to the profit and loss account is £447k (2020: credit £246k). Deficit recovery contributions due within one year for the College are £126k (2020: £52k).

Since 30 June 2021 a new schedule of deficit contributions has been issued, which requires payment of 2% of salaries over the period 1 April 2020 to 30 September 2021, and then 6.3% from 1 October 2021 until 28 February 2038. If the provision were to be recalculated on this basis for the year ended 30 June 2021 it would increase to £2,970k.

Church of England Funded Pensions Scheme (CEFPS)

Each participating Responsible Body in the scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi‐employer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme’s assets and liabilities to specific Responsible Bodies, and this means that contributions are accounted for as if the Scheme were a defined contribution scheme. The total charge to the profit and loss account is £3k (2020: credit £7k).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at 31 December 2018. The 2018 valuation revealed a deficit of £50m, based on assets of £1,818m and a funding target of £1,868m, assessed using the following assumptions:

An average discount rate of 3.2% p.a.;
RPI inflation of 3.4% p.a. (and pension increases consistent with this);
Increase in pensionable stipends of 3.4% p.a.;
Mortality in accordance with 95% of the S3NA_VL tables, with allowance for improvements in mortality rates in line with the CMI2018 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7 and an initial addition to mortality improvements of 0.5% p.a.

Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) are as set out in the table below.

% of pensionable stipends	January 2018 to	January 2021 to
	December 2020	December 2022
Deficit repair contributions	11.9%	7.1%

As at 30 June 2020 and 30 June 2021 the deficit recovery contributions under the recovery plan in force were as set out in the above table.

For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme’s rules.

Notes to the financial statements

26. PENSION SCHEMES (continued)

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the balance sheet liability is set out in the table below.

Balance sheet liability at 1 July Deficit contribution paid Interest cost Remaining change to the balance sheet liability Balance sheet liability at 30 June*	2021 £’000 2020 £’000 8 19 (3) (2) ‐ (9) (1) ‐
	4 8

Comprises change in agreed deficit recovery plan and change in discount rate between year ends.

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:

Discount rate Price inflation Increase to total pensionable payroll	December 2020 % p.a. 0.2 3.1 1.3	December 2019 % p.a. 1.1 2.8 1.3	December 2018 % p.a. 2.1 3.1 1.6

The legal structure of the scheme is such that if another Responsible Body fails, the College could become responsible for paying a share of that Responsible Body’s pension liabilities.

Teachers’ Pension Scheme

The College School participated in the Teachers’ Pension Scheme (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £476k (2020: £555k) and at the year‐end £nil (2020 ‐ £nil) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi‐employer defined benefits pension scheme governed by The Teachers’ Pensions Regulations 2010 (as amended) and The Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a “pay as you go” basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.

Following a consultation with employees, the College School completed its exit of the scheme on 30 April 2021. No further contributions are payable to the scheme beyond this date and the College School has provided alternative pension arrangements for those employees affected by this decision through an alternative defined contribution pension scheme.

Notes to the financial statements

27. RELATED PARTY TRANSACTIONS

Owing to the nature of the College’s operations and the composition of its College Council, it is inevitable that transactions will take place with organisations in which a College Council member may have an interest. All transactions involving organisations in which a member of the College Council may have an interest are conducted at arm’s length and in accordance with the College’s normal procedures.

The College maintains a register of interests for all College Council members, and where any member of the College Council has a material interest in a matter of business before the Council they are obliged under the standing orders of the College to declare that fact.

Fellows are remunerated for teaching, research and other duties within the College, Fellows are billed for any private catering. The College also offers Fellows and staff assistance with housing costs on a shared equity basis and has a housing allowance scheme to assist Fellows in the first four years after joining the Fellowship. The remuneration of Fellows is overseen by the Remuneration Committee.

The School provides a discount on school fees to its staff as part of its terms of appointment; where children of Fellows and other staff attend the School, they pay fees on the normal terms.

During the year no fees, salaries or expenses were paid to Fellows in respect of their duties as trustees.

The salaries paid to Trustees in the year, including any salary supplements paid in lieu of employer pension contributions where applicable, are summarised in the table below:

From To £0 £10,000 £10,001 £20,000 £20,001 £30,000 £30,001 £40,000 £40,001 £50,000 £50,001 £60,000 £60,001 £70,000 £70,001 £80,000 £80,001 £90,000 £90,001 £100,000 £100,001 £110,000 £110,001 £120,000 £120,001 £130,000 £130,001 £140,000 £140,001 £150,000 £150,001 £160,000 £160,001 £170,000 £170,001 £180,000 £180,001 £190,000 Total		2021 Number 6 2 2 1 ‐ 2 ‐ ‐ 1 ‐ ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ 1	2020 Number 10 3 ‐ 1 1 ‐ ‐ ‐ ‐ 1 ‐ ‐ 1 ‐ ‐ ‐ ‐ ‐ 1
		16	18

The total Trustee salaries in the year were £634,560 for the year (2020: £561,634).

Notes to the financial statements

27. RELATED PARTY TRANSACTIONS (continued)

The aggregate amounts of other benefits, employer national insurance contributions and employer current service pension contributions paid or payable during the year are as follows:

Salaries Other taxable benefits Employer pension contributions for current service Employer National Insurance Aggregated key management personnel compensation	2021 Total £’000 2020 Total £’000 635 562 16 9 167 86 98 67
	916 724

The College has a number of trading and dormant subsidiary undertakings which are consolidated into these accounts. All subsidiary undertakings are 100% owned by the College and are registered and operating in England and Wales.

The College is taking advantage of the exemption within Section 33 of FRS 102 not to disclose transactions with wholly owned group companies that are related parties.

At 30 June 2020, Aquila Investments Ltd had outstanding unsecured loans of £2,581k (2020: £2,210k) due from Waterbeach Development Company LLP, a joint venture in which it holds a 17.5% share. These comprise a £2,240k (2020: £2,000k) interest‐bearing loan which is repayable in 2029, or earlier if certain conditions are met, and may be converted into an increased partnership share, and a £341k (2020: £210k) interest‐free loan which is part of funding provided by the members in proportion to their partnership shares, and is repayable in 2029 or earlier. The interest‐free loan must be repaid before any repayments of convertible loans or any discretionary distributions to members are made.

Notes to the financial statements

28. SUBSIDIARY UNDERTAKINGS AND JOINT VENTURES

Subsidiaries

The College’s principal trading and dormant subsidiary undertakings at 30 June 2021 and 30 June 2020 are set out below.

Subsidiary	Activity	Holding	%
St John’s Enterprises	The provision of conference facilities and	2 ordinary shares of £1	100%
Limited	tourism administration at St John’s	each
	College, Cambridge.
Aquila Investments	Property development and farming.	74,805,020 ordinary shares	100%
Limited		of 1p each
St John’s Innovation	The management of St John’s Innovation	113,429 ordinary shares of	100%
Centre Limited	Centre on behalf of the College, and the	£1 each
	provision of advice and guidance to early‐
	stage knowledge‐based businesses in the
	Cambridge sub‐region.
Lomas Developments	Property development.	5,000,004 ordinary shares	100%
Limited		of 10p each
St John’s College	Dormant	820,004 ordinary shares of	100%
Development Limited		50p each
Aquivar Management		100 ordinary shares of £1	100%
Services Limited	Dormant	each
SJCS International Limited	Leasing of intellectual property	1 ordinary share of £1 each	100%
St John’s College School,	Primary Education	Sole member of company	100%
Cambridge (incorporated		limited by guarantee
14 May 2021)

On 10 September 2021, the activities of the School were transferred into a company limited by guarantee, St John’s College School, Cambridge which is a separately registered charity. The College is the sole member of the company and the School Governors are the directors and the charity trustees.

Joint Ventures

The College’s principal trading and dormant joint venture undertakings at 30 June 2021 and 30 June 2020 are set out below.

Joint venture	Activity	Country of Incorporation	% Holding
Waterbeach	Property development	United Kingdom	17.5%
Development Company
LLP

ST JOHN’S COLLEGE CAMBRIDGE

Annual Report and Financial Statements

Contents

Trustees’ Report

REFERENCE AND ADMINISTRATIVE INFORMATION

Status

Address and website

Charity trustees

Senior Officers

Membership of the Governing Body

Principal Advisers

GOVERNANCE

OBJECTS AND AIMS

Objects

Aims

ACTIVITIES, PERFORMANCE AND FUTURE PLANS

Introduction

The Impact of COVID‐19 on College Activities

Activities and Performance

Future Plans

FINANCIAL REVIEW

Scope of the Financial Statements

Results overview

Income before donations and endowments

Development and Fundraising

Expenditure

Results on the distribution basis

Capital Expenditure

Balance sheet

Reserves

Endowment and Investment Performance

PRINCIPAL RISKS AND UNCERTAINTIES

RESPONSIBILITIES OF THE COLLEGE COUNCIL

STATEMENT OF INTERNAL CONTROL

OUTLOOK

INDEPENDENT AUDITORS’ REPORT TO THE GOVERNING BODY OF ST JOHN’S COLLEGE

Basis for opinion

Conclusions relating to going concern

Other information

Matters on which we are required to report by exception

Responsibilities of trustees

Auditor’s responsibilities for the audit of the financial statements

Extent to which the audit was considered capable of detecting irregularities, including fraud

Use of our report

Statement of Principal Accounting Policies

BASIS OF PREPARATION

BASIS OF ACCOUNTING

BASIS OF CONSOLIDATION

JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Pension Benefits

Classification of property

ESTIMATES AND ASSUMPTIONS

Revaluation of Investment Properties

Valuation of non‐quoted investments

Pension liabilities

RECOGNITION OF INCOME

Academic Fees

Cambridge Bursary Scheme

Rental Income

Donations and Benefactions

Endowment and Investment Income

Accommodation, catering and conferences income

Other Income

Grant income

INVESTMENT COSTS

FOREIGN CURRENCY TRANSLATION

TANGIBLE FIXED ASSETS

Land and Buildings

Maintenance of Premises

Equipment

Leased Assets

Heritage Assets

INVESTMENTS

INVESTMENT PROPERTY

STOCKS

PROVISIONS

FINANCIAL INSTRUMENTS

Financial assets

Financial Liabilities