2023-06-30-accounts

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ST JOHN’S COLLEGE CAMBRIDGE

Annual Report and Financial Statements

for the year ended 30 June 2023

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	6
Principal risks and uncertainties	12
Responsibilities of the College Council	12
Statement of internal control	13
Outlook	14
Independent Auditor’s Report to the Governing Body of St John’s College	15
Statement of Principal Accounting Policies	18
Consolidated Statement of Comprehensive Income and Expenditure	29
Summary Consolidated Statement of Comprehensive Income and Expenditure	30
Consolidated and College Statement of Changes in Reserves	31
Consolidated Balance Sheet	32
College Balance Sheet	33
Consolidated Cash Flow Statement	34
Notes to the Financial Statements	35

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, selfgoverning, 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 Master, Mrs Heather Hancock (Chair) Dr Helen Watson (to 30 September 2022) Professor Ben Simons Professor Christine Gray Professor John Rink Professor Steve Edgley Dr Paul Wood Professor Chris Jiggins Dr Mark Oakley Dr Victoria Harvey Professor Máire Ní Mhaonaigh Dr Sylvana Tomaselli Professor Usha Goswami (from 1 July 2022) Dr Jack Smith (from 1 October 2022)

Senior Officers

Master (or Head of House) President Senior Tutor Senior Bursar

Mrs Heather Hancock Professor Steve Edgley Mr Richard Partington Mr Chris Ewbank

Trustees’ Report (continued)

Membership of the Governing Body

The members of the Governing Body of the College as at 1 October 2023 are set out below: Master: Mrs Heather Hancock

President: Professor Steve Edgley Other Fellows (in order of election)

Dr Ben Garling Dr George Reid Professor Patrick Boyde Dr John Leake Dr Alan Macfarlane Professor David McMullen Dr Keith Matthews Mr Ray Jobling Dr Andrew Macintosh Professor Malcolm Clarke Professor John Iliffe Professor Malcolm Schofield Professor Tim Bayliss-Smith Professor Steve Gull Professor 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 Dr Martin Richards Professor John Kerrigan Professor Graham Burton Professor Geoff Horrocks Professor Sir Partha Dasgupta Professor Hugh Matthews Professor Jane Heal Professor 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 Professor Christel Lane Dr Christopher Robinson Professor Yuri Suhov Professor Simon Szreter Professor Deborah Howard Professor Manucha Lisboa Professor Ulinka Rublack Professor Ben Simons Professor Maire Ní Mhaonaigh Professor Duncan McFarlane

Professor Christine Gray Dr Ian Winter Professor Nick Manton Professor Neil Arnold Dr Stefano Castelvecchi Professor Ann Louise Kinmonth Professor Janet Lees Professor Stefan Reif Professor David Stuart Dr Mark Nicholls Dr Matthias Dörrzapf Professor Pierpaolo Antonello 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 Dr Sylvana Tomaselli Mr Chris Ewbank Dr Frank Salmon Dr Chris Warnes Professor Chris Jiggins Mr Stephen Teal 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 Professor Hannah Joyce Professor Orietta Da Rold Professor Albertina Albors-Llorens Professor Edward Tipper Mr Tim Watts Professor Adam Chau

Professor Graham Ladds

Professor Richard Gilbertson Dr Fleur Kilburn-Toppin Professor Eske Willerslev Professor Andy Wheeler Dr Gabriella Santangelo Professor Laura Torrente Murciano Dr Ruth Abbott Dr Mark Oakley Professor Eric Miska Professor Jean Abraham Professor Helen McCarthy Professor Dhruv Ranganathan Dr Jack Smith Dr Becky Shercliff Dr Kadi Saar Dr Morag Morrison-Helme Dr Victoria Harvey Professor Amanda Sferruzzi-Perri Professor Alexander Bird Dr Christiana Scheib Dr Jules O'Dwyer Dr Nick Friedman Dr Virgil Andrei Mr Richard Partington Dr Benedek Kruchió Dr Marie Chabbert Dr Rosalba García Millán Dr Darshil Shah Professor Laura Diaz Anadon Ms Ella Sbaraini Professor Nic Lane Dr Matteo Seita Dr Jessie Munton Mr Chris Gray Dr Ritwick Sawarkar Mrs Alison Cox Dr Vasileios Kotsidis Dr Sofia Singler Dr Jef Laga Dr Amy Orben Professor Sarah Hall Ms Brigid Ehrmantraut Mr Rakesh Arul Professor Po-Ling Loh Dr Michael Boemo Dr Leah Downey Dr John Colley

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, Abacus House, Castle Park, Castle Hill, Cambridge, CB3 OAN 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 2023 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

Trustees’ Report (continued)

are responsible for overseeing the Chapel and the conduct of junior members of the College; the Senior Bursar, who 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 and Risk Assurance Committee 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 and Risk Assurance Committee makes an annual report to the Council. Membership of the Audit and Risk Assurance Committee comprises three members of the Council who are not College Officers, one other Fellow and one external member (to be appointed). The Council also appoints a separate Board of Scrutiny which acts as a Board of Scrutiny and reports to the Governing Body.

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;
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.

Trustees’ Report (continued)

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 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, with a specific focus on raising Endowment funds to provide secure future funding for the Free Places scheme.

Activities and Performance

St John’s received a similar number of Undergraduate admissions applications in 2022-23 compared with the previous cycle, with 1,188 applications received and 784 candidates interviewed. Interviews were conducted remotely, as has been the case since the 2020-21 admissions cycle. A sizeable programme of outreach and recruitment activities has been undertaken. This included open days, school visits, subject taster sessions and admissions clinics. There has been continued engagement with Link Areas and other targeted schools through in-person visits and online outreach sessions alongside collaborative outreach programmes targeting particular cohorts of prospective applicants.

St John’s contributed to the University-wide Cambridge Bursary Scheme as well as the enhanced scheme (CBS2). In total, 194 means-tested bursaries were provided in the year, of which 112 were at the maximum bursary level (£3,500 for the full academic year; £5,600 for independent students). 28 students who had been on Free School Meals received the Education Premium, an additional grant of £1,000. At a College level, we awarded 98 St John’s College Studentships to students from low-income backgrounds (family income up to £25,000) totalling £719k. We also awarded 36 Studentships to students from middle-income backgrounds (family income between £25,000 and £42,620) totalling £173k.

51 students received College funding for their summer projects and activities in Long Vacation 2022, and 131 students were awarded Travel Grants. The total amount awarded in 2022-23 to fund research projects, summer activities and travel was £90k. 4 Pre-Admissions prizes were awarded to Home students from state schools who started their undergraduate studies at St John’s in October 2022. There have also been 2 full scholarships, 22 partial scholarships, and 7 top-up funding bursaries for international and EU students. Between July 2022 and June 2023, 488 students received Learning & Research Fund support totalling £198k. During the same period, £50k has been awarded in hardship grants, approximately £29k for undergraduate students and £21k for postgraduates.

A Title C Fellow and five Title B Fellows were elected. Four new Research Fellows were elected in Computer Science, History, Human Social and Political Sciences and Pure Mathematics. Five new College Research Associates were appointed offering College affiliation to post-doctoral researchers in the University.

Future Plans

The College Council has approved a series of clear priorities for taking the College forward over the next few years. These break down into four areas: students; the Fellowship; stewardship; and cross cutting and enabling themes.

With respect to students, a series of actions have been identified to create a distinctive collegiate experience for the College’s students, focused on areas that can make the greatest difference to their academic progress as well as investing in their intellectual, cultural and social capital and supporting their wellbeing.

Priorities concerning the Fellowship revolve around reviewing the size, shape and experience of the Fellowship so that it continues to be structured and operate in ways that support scholarship and research excellence, provide excellent

Trustees’ Report (continued)

teaching and learning for our students and foster collegiality, intellectual exchange, academic freedom and support the stewardship obligations of the College.

With respect to stewardship, the College aims to exercise stewardship in the interests of future generations of the College, for the wider public good and for the wellbeing of the planet. This work straddles operating in a financially sustainable way, enhancing the Chapel’s impact on our purpose as a place of religion, the wider life of the College and the public good, taking forward our climate change action plan and maintaining and caring for our buildings and grounds.

The key cross cutting and enabling themes include: further developing and implementing the College’s estate masterplan and landscape strategy; exploring how our libraries, archives and records can add further value to educational and research life and public outreach; improving the resilience in critical College infrastructure and processes; increasing awareness of the College through a strategic and integrated approach to communications; and creating a collaborative, supportive and continuous improvement workplace culture to attract and retain high performing and dedicated staff who enjoy their jobs.

FINANCIAL REVIEW

Scope of the Financial Statements

The consolidated financial statements include the College and the College’s wholly-owned 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
St John’s College School, Cambridge and its subsidiary 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

Trustees’ Report (continued)

Overall, income before donations and endowments increased from £41.6m in 2022 to £47.1m in 2023. The most significant factors were an increase in investment income, particularly income from securities, and the resumption of commercial catering and conferencing after a period of constrained activity following the pandemic.

Income before donations and endowments represented 83.2% of income in 2023, a slight reduction from 84.7% in 2022, due to the increase in Endowment donations in 2023.

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; co-curricular activities including sport, music and the arts; general purposes, and an annual fund.

Income from donations and new endowments represented 16.8% of total income (15.3% in the previous year).

Total donations increased from £7.5m in 2022 to £9.5m in 2023, driven by an increase in Endowment donations, particularly for the Christopher Dobson Free Places scheme. Current Use donations and grants for capital assets were broadly in line with the previous year.

St John’s College is committed to best practice in relation to all fundraising activities, which are carried out by an inhouse Development team who are subject to the scrutiny of the Development Committee and College Council. During this financial year, a Commercial Participator made a donation to the College in relation to the sale of an artwork in October. The College did not engage with any other third parties to carry out fundraising activities on its behalf during the year and in-house fundraisers employed directly by St John’s College have carried out all fundraising. During the year, the College has carried out face-to-face fundraising meetings and a variety of digital and postal direct marketing appeals.

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. 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. For instance the College will not knowingly accept

Trustees’ Report (continued)

a donation if we know, or have good reason to believe, that a person lacks capacity to make a decision to donate, or is in vulnerable circumstances which mean they may not be able to make an informed decision. Training is provided to all new staff and our guidelines are continually reviewed and kept in line with the guidance set out by the Fundraising Regulator. Our complaints procedure is available to view on our website. The College received no formal complaints in the financial year 1 July 2022 to 30 June 2023.

Expenditure

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

Residences, catering and conferences costs rose by £1.4m due to a combination of increased activity and significant rises in food and energy costs compared to the previous year. Within Investment costs, there was an increase in property management costs, following a reduction in 2022 compared to the previous year. Other expenditure included a one-off charge of £0.5m for loss on disposal of fixed assets.

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:

Trustees’ Report (continued)

The increase in Other Operating Expenses was driven by high inflation, particularly in utilities and food costs, and an increase in expenditure on maintenance of the College estate. Staff Costs and Depreciation both showed a small increase on the prior year, and interest increased as a result of a higher rate of interest on the College’s floating-rate borrowing.

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 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 2023 and 2022 are summarised below:

2023 2022 £’000 £’000 49,107 43,955 9,492 7,500	Change £’000 5,152 1,992	% change 11.7% 26.6%

58,599 51,455 45,745 42,302	7,144 3,443	13.9% 8.1%
12,854 9,153 6,358 6,148	3,701 210	40.4% 3.4%
6,496 3,005 (2,192) (3,628)	3,491 1,436	116.1% (39.6%)

Trustees’ Report (continued)

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 £9.9m, compared to a prior year figure of £7.4m. Expenditure in 2022-23 included £3.2m to complete the major refurbishment of catering facilities which opened in February 2023, £2.5m on work to convert buildings on the West side of the College site into a new Porters’ Lodge and administration building, £0.7m on refurbishments of existing student accommodation, £1.2m on planning and design for a new post-graduate accommodation campus to be constructed close to the College ready for occupation in 2025, and further investment in IT infrastructure.

Balance sheet

Consolidated net assets stood at £986.2m at 30 June 2023, up £12.5m (1.3%) on the prior year. The increase was caused by the £10.2m surplus for the year and a £2.1m actuarial reduction in pension deficit liabilities.

Reserves

At 30 June 2023, the unrestricted income and expenditure reserve stood at £258.1m, up £1.9m (0.7%) 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 increased by £0.1m to £8.9m following the revaluation of an operational property which was transferred to investments during the year.

Restricted and endowment reserves increased by £10.5m (1.5%) compared to the prior year; within restricted reserves the balance of funds held for current use reduced by £0.6m to £1.5m, donations for capital grants increased by £0.6m to £1.3m, and expendable restricted endowments increased from £41.9m to £43.7m. The endowment reserve increased by £8.6m (1.3%) to £672.7m, of which £145.9m (2022: £136.1m) is held in permanent endowment funds with restricted purposes, and £526.8m (2022: £527.9m) in permanent unrestricted endowment funds. The reduction in the balance of permanent unrestricted endowment funds is due to the fall in property valuations during the year.

Total funds as at 30 June 2023 were £986.2m, up £12.5m (1.3%) 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 £768.3m at 30 June 2023, up £11.2m (1.5%) from its value at 30 June 2022. The increase was due to endowment donations received and gains on investments in securities, offset by a drop in valuation of investment properties.

Trustees’ Report (continued)

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	2023 2022 £’000 £’000 691,505 694,834 36 44 185 96 9,309 12,526 74,929 59,291	Change £’000 (3,329) (8) 89 (3,217) 15,638	% change (0.5%) (18.2%) 92.7% (25.7%) 26.4%
	775,964 766,791 (7,694) (9,713) - -	9,173 2,019 -	1.2% (20.8%) -
	768,270 757,078	11,192	1.5%

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 2023 or June 2022.

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.

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 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;
The impact of high inflation, particularly in light of the fact that regulated fees for home undergraduate students are currently fixed in nominal terms: The College monitors its expenditure and adjusts its activities where possible to mitigate the effects of high inflation, and has launched a project to review its procurement practices, in part to assist in achieving efficiency improvements and costs savings;
The impact of higher interest rates: the College borrows through a combination of long-term fixed-rate debt, the cost of which is unaffected by rising interest rates, and a floating rate revolving credit facility, the interest rate on which increases with rising market rates. The interest cost of floating rate debt is mitigated by efficient treasury management to ensure the revolving credit facility is only drawn when needed;
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

Trustees’ Report (continued)

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;
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 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 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.

The College has prepared a detailed budget covering the period to 30 June 2026. The Trustees have concluded that the Endowment distribution under the spending rule (explained on page 21), together with £50m undrawn headroom (at 30 June 2023) on the revolving credit facility which is in place to May 2028, 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.

Trustees’ Report (continued)

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 2023 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.

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 conducts a formal risk-management process through maintenance and review of a risk register. The relevant individuals in the College are charged with responsibility for evaluating the risks 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 seeks 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 College continues to focus on our core priorities, which include the need to raise endowment funds to underpin 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, and to take meaningful action to address the climate crisis.

Trustees’ Report (continued)

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

16 November 2023

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 2023 which comprise the Consolidated Statement of Comprehensive Income and Expenditure, the Statement of Changes in Reserves, the Consolidated and College 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 2023 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.

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. The College has prepared a detailed budget covering the period to 30 June 2026. The Trustees have concluded that the Endowment distribution under the spending rule (explained on page 21), together with £50m undrawn headroom (at 30 June 2023) on the revolving credit facility which is in place to May 2028, 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.

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

Statement of Principal Accounting Policies

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 2023. 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 2020 actuarial valuation, which defines the deficit payment required as a percentage of future salaries until 2038. 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 2022-23, 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 £248k is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows:

Other Academic Income £349k Expenditure £597k

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% subject to a minimum payout of 2.5% and a maximum payout of 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:

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

Defined-Contribution Pension Schemes

The College and its subsidiaries also contribute to a number of defined-contribution pension schemes. For definedcontribution 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.

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

Statement of Principal Accounting Policies

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

Consolidated Statement of Comprehensive Income and Expenditure

Unrestricted £000 5,103 7,375 8,367 383 14,419 123	Restricted £000 - - - 286 2,656 -	Unrestricted £000 4,902 5,974 7,851 56 12,956 306	Restricted £000 - - - 15 2,267 -	2022 Endowment Total £000 £000 - 4,902 - 5,974 - 7,851 22,499 22,570 (15,223) - - 306
35,770	2,942	32,045	2,282	7,276 41,603
189 - -	615 1,004 809	234 - -	633 63 723	- 867 5,847 5,910 - 723
189	2,428	234	1,419	5,847 7,500
35,959	5,370	32,279	3,701	13,123 49,103
11,102 15,657 8,153 2,616 209 859	4,453 99 57 155 174 214	11,278 14,290 7,840 1,805 197 690	4,238 87 185 141 163 238	- 15,516 - 14,377 - 8,025 - 1,946 7,298 7,658 - 928
38,596	5,152	36,100	5,052	7,298 48,450
(2,637) (2,637) 2,219	218 (1,595) 1,798	(3,821) (3,821) 3,670	(1,351) (2,137) 2,731	5,825 653 (22) (5,980) 52,136 58,537
(418) 137 2,110	2,016 - -	(151) - 9,561	1,380 - -	57,961 59,190 - - - 9,561
1,829	2,016	9,410	1,380	57,961 68,751

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 before other gains and losses Deficit before other gains and losses excluding new endowments & capital grants Gain on investments 3e Surplus for the year Other comprehensive income Unrealised surplus on revaluation of fixed assets Actuarial gain in in respect of pension schemes 15 Total comprehensive income for the year	2023 Total £000 5,103 7,375 8,367 26,149 123 47,117 804 7,879 809 9,492 56,609 15,555 15,756 8,210 2,771 8,738 1,073 52,103 4,506 (4,182) 5,737 10,243 137 2,110 12,490	2022 Total £000 4,902 5,974 7,851 22,570 306
		41,603
		867 5,910 723
		7,500
		49,103
		15,516 14,377 8,025 1,946 7,658 928
		48,450
		653 (5,980) 58,537
		59,190 - 9,561
		68,751

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:

		2023	2022
		£000	£000
Total income on a distribution basis (as defined on Page 10 of the Trustees’ Report)	3g	58,599	51,455
Deficit before other gains and losses excluding new endowments & capital grants on a distribution basis		(2,192)	(3,628)

Statement of Changes in Reserves

Consolidated

Note

Income and Unrestricted £000 256,207 (418) 2,110 190	Income and	expenditure	reserve Endowment £000 664,041 8,645 -	Revaluation reserve Total £000 £000 8,724 973,663 - 10,243 137 2,247 - -	Revaluation reserve Total £000 £000 8,724 973,663 - 10,243 137 2,247 - -
		Restricted £000 44,691 2,016 (190)

	258,089	46,517	672,686		8,861 986,153
Income and Unrestricted £000 246,528 (151) 9,561 269	Income and	expenditure	reserve Endowment £000 606,080 57,961 - -	Revaluation reserve Total £000 £000 8,724 904,912 - 59,190 - 9,561 - -
		Restricted £000 43,580 1,380 - (269)

	256,207	44,691	664,041		8,724 973,663
Income and Unrestricted £000 250,736 (643) 2,110 190	Income and	expenditure	reserve Endowment £000 663,318 8,626 - -	Revaluation reserve Total £000 £000 8,724 967,011 - 10,035 137 2,247 - -
		Restricted £000 44,233 2,052 - (190)

	252,393	46,095	671,944		8,861 979,293
Income and Unrestricted £000 246,494 (1,702) (3,886)	Income and	expenditure	reserve Endowment £000 605,758 58,476 (916)	Revaluation reserve Total £000 £000 8,724 904,556 - 58,310 - (5,416)
		Restricted £000 43,580 1,536 (614)
(5,588)		922	57,560		- 52,894
9,561 269		- (269)	- -		- 9,561 - -
250,736		44,233	663,318		8,724 967,011

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	2023 £’000 247,400 559 696,207 944,166 718 9,593 70,146 80,457 (13,706) 66,751 1,010,917 (14,329) 996,588 (10,435) 986,153 672,686 46,517 719,203 258,089 8,861 266,950 986,153	2022 £’000 246,158 559 699,549
		946,266 631 13,609 62,292
		76,532 (21,120)
		55,412
		1,001,678 (15,172)
		986,506 (12,843)

		973,663
		664,041 44,691
		708,732 256,207 8,724
		264,931
		973,663

These Financial Statements were approved by the College Council and authorised for issue on 16[th] November 2023 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	2023 £’000 240,209 559 701,419 942,187 533 9,322 66,762 76,617 (14,747) 61,870 1,004,057 (14,329) 989,728 (10,435) 979,293 671,944 46,095 718,039 252,393 8,861 261,254 979,293	2022 £’000 238,645 559 704,761
		943,965 535 15,188 57,684
		73,407 (22,346)
		51,061
		995,026 (15,172)
		979,854 (12,843)
		967,011
		663,318 44,233
		707,551 250,736 8,724
		259,460
		967,011

The College recorded a surplus for the financial year of £10,034k (2022: £52,894k) and other comprehensive gains of £2,247k (2022: £9,561k).

These Financial Statements were approved by the College Council and authorised for issue on 16[th] November 2023 and signed on their behalf by:

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 Increase 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	2023 £’000 (4,865) 19,529 (6,810) 7,854 62,292 70,146	2022 £’000 (5,976) 36,896 (16,307)
		14,613 47,679
		62,292

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

Notes to the financial statements

Notes to the Financial Statements

	2023 £’000 2,534 763 1,326	2022 £’000 2,582 756 1,070
	4,623 480	4,408 494
	5,103	4,902
	2023 £’000 5,664 202 1,071 438	2022 £’000 5,113 - 712 149
	7,375	5,974
2023 £’000 2022 £’000 15,915 14,018 2,485 40 50 17 1,772 1,566 564 501 23 1
20,809 16,143
20,049 16,069 91 3 669 71
20,809 16,143
2023 £’000 2022 £’000 (4,989) 42,358 18,447 18,419
13,458 60,777 (2,381) 4,187
11,077 64,964

Notes to the financial statements

	2023 £’000 2022 £’000 6,771 58,209 289 354 4,017 6,401	2023 £’000 2022 £’000 6,771 58,209 289 354 4,017 6,401
11,077 64,964
	2023 £’000 4,887 1,803 144 23 181 1,541 159	2022 £’000 4,001 1,631 266 12 188 1,428 132
	8,738	7,658
	8,318 37 383	7,276 22 360
	8,738	7,658
2023 £’000 2022 £’000 20,049 16,069 (8,318) (7,276)
11,731 8,793
17,071 15,220 (11,731) (8,793)
5,340 6,427 20,809 16,143
26,149 22,570
2023 £’000 2022 £’000 11,077 64,964 (5,340) (6,427)
5,737 58,537

Notes to the financial statements

2023 £’000 2022 £’000 20,049 16,069 6,771 58,209 (8,318) (7,276)	2023 £’000 2022 £’000 20,049 16,069 6,771 58,209 (8,318) (7,276)	2023 £’000 2022 £’000 20,049 16,069 6,771 58,209 (8,318) (7,276)
18,502 67,002 (17,071) (15,220)
	1,431 51,782
2023 £’000 2022 £’000 56,609 49,103 1,990 2,352
58,599 51,455
	2023 £’000 5,655 2,427 909 1,956 4,057 551	2022 £’000 5,515 2,190 825 2,083 4,374 529
15,555 15,516
2023 £’000 2022 £’000 11,513 10,930 119 - 3,804 3,298 320 149
15,756 14,377

Notes to the financial statements

6. ANALYSIS OF EXPENDITURE BY ACTIVITY

Staff Costs (note 7) £’000 6,745 5,734 5,227 1,048 1,339 -	Other Operating Expenses £’000 7,238 4,370 2,404 1,723 7,344 1,073	Depreciation (note 8) £’000 1,296 4,658 396 - 8 -	Interest and other finance costs £’000 2023 Total £’000 276 15,555 994 15,756 183 8,210 - 2,771 47 8,738 - 1,073



20,093	24,152	6,358	1,500 52,103

6a 2023 Expenditure

Expenditure includes fundraising costs of £717k.

Staff Costs (note 7) £’000 6,944 5,841 5,033 867 1,209 -	Other Operating Expenses £’000 7,159 3,457 2,413 1,079 6,364 928	Depreciation (note 8) £’000 1,250 4,494 396 - 8 -	Interest and other finance costs £’000 2022 Total £’000 163 15,516 585 14,377 183 8,025 - 1,946 77 7,658 - 928



19,894	21,400	6,148	1,008 48,450

Expenditure includes fundraising costs of £631k.

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		2023 £’000 69 48 14	2022 £’000 60 41 23
		131	124

Amounts stated above include unrecoverable VAT

Notes to the financial statements

7. STAFF COSTS

STAFF COSTS
Staff Costs Salaries National insurance Pension costs Total	College Fellows £’000 2,449 284 298		Other Academic £’000 481 31 40		Non- Academic £’000 2023 Total £’000 2022 Total £’000 13,233 16,163 15,387 1,307 1,622 1,464 1,970 2,308 3,043

		3,031		552	16,510 20,093 19,894

In addition to the costs shown above, the College paid £299k (2022: £231k) 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		College Fellows 105 -	Other Academic - 12	Non- Academic - 363	2023 Total 105 375	2022 Total 97 361
		105	12	363	480	458
	Fello	ws, at 30 June was			2023 Number 152	2022 Number 157

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

Average staff numbers (full-time equivalents) include 121 (2022: 114) School staff and 22 (2022: 22) 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 Between £200,001 and £210,000	2023 number 1 - 2 1 2 3 - - - - 1	2022 number
		2 2 2 1 3 1 - - - - 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 £’000 324,121 9,639 80 (483) (2,000)	Furniture and equipment £’000 3,842 38 - - -	Computer equipment £’000 2023 Total £’000 2022 Total £’000 3,288 331,251 325,023 269 9,946 7,364 - 80 - (376) (859) (1,161) - (2,000) 25

331,357	3,880	3,181 338,418 331,251
79,608 5,685 (57) -	3,357 147 - -	2,128 85,093 80,076 526 6,358 6,148 - (57) - (376) (376) (1,131)
85,236	3,504	2,278 91,018 85,093
246,121	376	903 247,400 246,158
244,513	485	1,160 246,158 244,947

Included in the cost of freehold land and buildings, are assets under the course of construction to the value of £5,401k (2022: £8,373k).

Freehold land and buildings £’000 315,010 9,631 80 (483) - (2,000)	Furniture and equipment £’000 3,232 18 - - - -	Computer equipment £’000 2023 Total £’000 2022 Total £’000 2,674 320,916 325,223 225 9,874 7,147 - 80 - (376) (859) (1,162) - - (10,317) - (2,000) 25

322,238	3,250	2,523 328,011 320,916
77,503 5,481 (57) - -	2,952 88 - - -	1,816 82,271 80,026 395 5,964 5,815 - (57) - (376) (376) (1,128) - - (2,442)
82,927	3,040	1,835 87,802 82,271
239,311	210	688 240,209 238,645
237,507	280	858 238,645 245,197

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 £5,401 (2022: £8,373k).

Included in transfers in 2022 are fixed assets transferred from the College to St John’s College School, Cambridge, with cost of £10,317k and accumulated depreciation of £2,442k.

The insured value of freehold buildings as at 30 June 2023 was £380,247k (2022: £335,879k).

Notes to the financial statements

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.

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.

Heritage assets are books gifted to or purchased by the College. The value of heritage assets acquired by donation during the year was £nil (2022: £nil). Donations of heritage assets valued at £60k were received in the year ended 30 June 2013. During the year, the College purchased Heritage Assets at a cost of £nil (2022: £29k).

9. INVESTMENTS Balance at beginning of year Additions Disposals Gain Transfers to College Operations Balance at end of year Represented by: Property Securities Investments in subsidiary undertakings	Group College 2023 £’000 2022 £’000 2023 £’000 2022 £’000 699,549 669,097 704,761 673,808 48,385 11,475 48,385 11,475 (67,185) (41,775) (67,185) (36,775) 13,458 60,777 13,458 56,278 2,000 (25) 2,000 (25)
	696,207 699,549 701,419 704,761
	363,520 366,900 363,515 366,895 332,687 332,649 332,687 332,649 - - 5,217 5,217
	696,207 699,549 701,419 704,761

10. STOCKS Goods for resale Other stocks Total stocks		Group 2023 £’000 711 7	2022 £’000 624 7	College 2023 £’000 533 -	2022 £’000 535 -
		718	631	533	535

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 2023 £’000 3,195 1,154 236 - 1,141 103 836 2,928	2022 £’000 2,894 2,592 758 - 2,680 92 1,064 3,529	College 2023 £’000 - 1,154 236 4,089 856 75 378 2,534	2022 £’000 - 2,592 758 5,561 2,415 77 592 3,193
		9,593 13,609		9,322 15,188

Notes to the financial statements

12. CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS
Short-term money market deposits Current accounts Total	Group College 2023 £’000 2022 £’000 2023 £’000 2022 £’000 5,466 5,302 5,466 5,302 64,680 56,990 61,296 52,382
	70,146 62,292 66,762 57,684

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 2023 £’000 1,866 83 - 1,073 842 3,922 793 5,127	2022 £’000 2,298 80 - 928 5,800 4,446 3,299 4,269	College 2023 £’000 1,673 83 2,334 1,073 842 3,959 537 4,246	2022 £’000 2,132 80 2,317 928 5,800 4,379 3,089 3,621
	13,706 21,120 14,747 22,346

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 2023 £’000 2022 £’000 14,329 15,172
	Group and College 2023 £’000 2022 £’000 3,837 3,645 10,492 11,527
	14,329 15,172

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 £5m was drawn down at 30 June 2022, this was shown in bank loans due within one year in 2022 and was repaid in 2023. In 2023 a new unsecured revolving credit facility was entered into for up to £50 million, of which £nil was drawn at 30 June 2023. 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 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 2023 £’000 2022 £’000 12,843 21,991 1,261 2,187 - - (2,037) (2,162) 478 388 (2,110) (9,561)
	10,435 12,843
	8,450 10,165 1,985 2,676 - 2
	10,435 12,843

16. ENDOWMENTS Group Balance at beginning of year: Capital Unapplied Total Return New endowments received Investment Income Expenditure 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 £’000 164,826 363,107	Unrestricted Permanent £’000 164,826 363,107	Restricted Permanent £’000 2023 Total £’000 2022 Total £’000 56,694 221,520 215,462 79,414 442,521 390,618

			527,933 585 19,193 (22,213) 1,304	136,108 664,041 606,080 6,290 6,875 5,847 947 20,140 16,072 (3,217) (25,430) (22,521) 5,756 7,060 58,563
			526,802	145,884 672,686 664,041
			165,418 361,384	63,316 228,734 221,520 82,568 443,952 442,521
			526,802	145,884 672,686 664,041
			- - - - - - - - - 526,802	1,920 1,920 1,873 11,782 11,782 11,537 12,728 12,728 10,236 2,268 2,268 2,140 1,662 1,662 1,626 21,557 21,557 20,937 83,274 83,274 77,382 992 992 949 9,701 9,701 9,428 - 526,802 527,933
			526,802	145,884 672,686 664,041

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 Other General Endowments Total		Unrestricted Permanent £’000 164,826 363,333	Unrestricted Permanent £’000 164,826 363,333	Restricted Permanent £’000 2023 Total £’000 2022 Total £’000 56,285 221,111 215,462 78,874 442,207 390,296

			528,159 585 16,884 (19,881) - 1,304	135,159 663,318 605,758 6,291 6,876 5,847 941 17,825 14,054 (3,211) (23,092) (15,453) - - (916) 5,713 7,017 54,028
			527,051	144,893 671,944 663,318
			165,418 361,633	62,907 228,325 221,111 81,986 443,619 442,207
			527,051	144,893 671,944 663,318
			- - - - - - - - 527,051	1,920 1,920 1,873 11,782 11,782 11,537 12,728 12,728 10,236 2,268 2,268 2,140 1,662 1,662 1,626 21,557 21,557 20,937 83,275 83,275 77,382 9,701 9,701 9,428 - 527,051 528,159
			527,051	144,893 671,944 663,318

Notes to the financial statements

17. RESTRICTED RESERVES

Group 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 £’000 703 809 - - - (190) - - - -	Capital Grants £’000 703 809 - - - (190) - - - -	Other Restricted Funds £’000 2023 Total £’000 2022 Total £’000 43,988 44,691 43,580 - 809 723 615 615 633 1,004 1,004 63 2,942 2,942 2,282 - (190) (269) (5,152) (5,152) (5,052) 1,798 1,798 2,731 - - - - - -

			1,322	45,195 46,517 44,691
			- - - - - - - 1,322 -	4,336 4,336 3,271 3,884 3,884 3,803 1,730 1,730 1,695 1,233 1,233 1,207 253 253 246 32,439 32,439 32,556 422 422 458 - 1,322 703 898 898 752
			1,322	45,195 46,517 44,691

Notes to the financial statements

17. RESTRICTED RESERVES (continued)

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 Capital expenditure Other Total		Capital Grants £’000 703 809 - - - (190) - - - -	Capital Grants £’000 703 809 - - - (190) - - - -	Other Restricted Funds £’000 2023 Total £’000 2022 Total £’000 43,530 44,233 43,580 - 809 723 615 615 633 1,004 1,004 63 2,939 2,939 2,282 - (190) (269) (5,093) (5,093) (4,872) 1,778 1,778 2,707 - - (614) - - -

			1,322	44,773 46,095 44,233
			- - - - - - 1,322 -	4,336 4,336 3,271 3,884 3,884 3,803 1,730 1,730 1,695 1,233 1,233 1,207 253 253 246 32,439 32,439 32,556 - 1,322 703 898 898 752
			1,322	44,773 46,095 44,233

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 funds transferred to St John’s College School 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	2023 £’000 2022 £’000 442,521 390,618 - - - 121 1,431 51,782
	443,952 442,521
	2023 £’000 2022 £’000 442,207 390,296 - (507) - 121 1,412 52,297
	443,619 442,207

Notes to the financial statements

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

Surplus for the year Adjustment for non-cash items Depreciation Endowment drawdown from unapplied total return Gain on investments Decrease in operational stocks Increase in operational trade and other receivables Increase/(decrease) 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 disinvested /(invested) Increase in investment working capital Gains/(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	2023 £’000 2022 £’000 10,243 59,190 6,358 6,148 (5,340) (6,427) (5,737) (58,537) 2 24 527 (104) (36) 1,229 (777) 25 (12,071) (8,485) 1,483 931 483 30
	(4,865) (5,976)
	2023 £’000 2022 £’000 2,000 (25) 12,071 8,485 16,800 30,325 986 1,317 (2,382) 4,187 (9,946) (7,393) 19,529 36,896 2023 £’000 2022 £’000 (1,010) (547) (5,800) (15,760) (6,810) (16,307)

Surplus for the year
Adjustment for non-cash items
Depreciation
Endowment drawdown from unapplied total return
Gain on investments
Decrease in operational stocks
Increase in operational trade and other receivables
Increase/(decrease) 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 disinvested /(invested)
Increase in investment working capital
Gains/(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

2023
£’000
2022
£’000
10,243
59,190
6,358
6,148
(5,340)
(6,427)
(5,737)
(58,537)
2
24
527
(104)
(36)
1,229
(777)
25
(12,071)
(8,485)
1,483
931
483
30

(4,865)
(5,976)

2023
£’000
2022
£’000
2,000
(25)
12,071
8,485
16,800
30,325
986
1,317
(2,382)
4,187
(9,946)
(7,393)
19,529
36,896
2023
£’000
2022
£’000
(1,010)
(547)
(5,800)
(15,760)
(6,810)
(16,307)

Notes to the financial statements

22. CONSOLIDATED RECONCILIATION AND ANALYSIS OF NET DEBT

At 1 July 2022 £000 Cash flows £000 62,292 10,235 (800) - (15,172) 801 (5,000) 5,000	Other non- cash movements £’000 - (42) 42 -	Changes in market value and exchange rates £000 At 30 June 2023 £’000 (2,381) 70,146 - (842) - (14,329) - -

(20,172) 5,801	-	- (14,329)
41,320 16,036	-	(2,381) 54,975

23. FINANCIAL INSTRUMENTS

24.

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 CAPITAL COMMITMENTS Capital commitments at 30 June were as follows: Authorised and contracted	Group 2023 £’000 2022 £’000 332,687 332,649 70,146 62,292 8,654 12,453 - -	College 2023 £’000 2022 £’000 332,687 332,649 66,762 57,684 8,869 14,519 5,217 5,217
	78,800 74,745 (15,171) (20,972) (1,866) (2,298) (7,766) (8,256)	80,848 77,420 (15,171) (20,972) (1,673) (2,132) (9,674) (10,146)
	(24,803) (31,526) (26,518) (33,250) 2023 £’000 2022 £’000 25,804 34,914

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 2023 £’000 - 6 -	2022 £’000 21 9 -	College 2023 £’000 - - -	2022 £’000 21 - -
		6	30	-	21

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 2023, 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, 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.)	2023 % p.a. 5.20 3.30 3.40 2.80 3.30 2.05*	2022 % p.a. 3.80 3.25 3.45 2.75 3.30 2.05

*For 1 year only, we have assumed that RPI will be 9% and CPI will be 7% (2022: 11% and 9% respectively). The caps under the Rules are applied to assumed pension increases.

The underlying mortality assumption is based upon the standard table known as S3PA on a year of birth usage with CMI_2022 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 (2022: S3PA with CMI_2021 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 21.4 years (previously 21.9 years).
Female age 65 now has a life expectancy of 23.9 years (previously 24.3 years).
Male age 45 now and retiring in 20 years has a life expectancy of 22.6 years (previously 23.2 years).
Female age 45 now and retiring in 20 years has a life expectancy of 25.3 years (previously 25.7 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:

2023 £’000 2022 £’000 (40,147) (46,739) 31,697 36,574	2023 £’000 2022 £’000 (40,147) (46,739) 31,697 36,574	2023 £’000 2022 £’000 (40,147) (46,739) 31,697 36,574
(8,450) (10,165)
	2023 £’000 791 67 390 -	2022 £’000 1,607 67 379 -
	1,248	2,053
2023 £’000 2022 £’000 46,739 63,094 791 1,607 275 307 (1,714) (1,261) 1,763 1,140 (7,708) (18,148) - -
40,146 46,739
2023 £’000 2022 £’000 36,574 42,144 1,475 1,593 275 307 (1,714) (1,261) (130) (116) 1,373 762 (6,156) (6,855)
31,697 36,574

(4,783) (6,093)
2023 2022 49% 52% 38% 34% 13% 14%
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	2023 £’000 2022 £’000 (6,156) (6,855) (63) (49) (3,537) (3,367) 11,244 21,516
	1,488 11,245

Movements in net defined benefit liability during the year ended 30 June are as follows:

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	2023 £’000 2022 £’000 (10,165) (20,950) (1,248) (2,053) 1,475 1,593 1,488 11,245
	(8,450) (10,165)

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 £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, due 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.

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 2020 valuation was the sixth valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £66.5 billion and the value of the scheme’s technical provisions was £80.6 billion indicating a shortfall of £14.1 billion and a funding ratio of 83%.

Notes to the financial statements

26. PENSIONS SCHEMES (continued)

The key financial assumptions used in the 2020 valuation are described below. More detail is set out in the Statement of Funding Principles.

CPI assumption

Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves less:

1.1% p.a. to 2030, reducing linearly by 0.1% p.a. to a long-term difference of 0.1% p.a. from 2040

Pension increases (subject to a CIP assumption plus 0.05% floor of 0%)

Discount rate (forward rates) Fixed interest gilt yield curve plus:

Pre-retirement: 2.75% p.a. Post-retirement: 1.00% p.a.

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 2020 actuarial valuation. The mortality assumptions used in these figures are as follows:

2020 Valuation

Mortality base table

Future improvements to mortality

101% of S2PMA “light” for males and 95% of S3PFA for females

CMI_2019 with a smoothing parameter of 7.5, an initial addition of 0.5% p.a. 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:
Males currently aged 65 Females currently aged 65 Males currently aged 45 Females currently aged 45	2023 years 24.0 25.6 26.0 27.4	2022 years
		23.9 25.5 25.9 27.3

A new deficit recovery plan was put in place as part of the 2020 valuation, which requires payment of 6.2% of salaries over the period 1 April 2022 until 31 March 2024, at which point the rate will increase to 6.3%, payable until 30 April 2038. The 2022 deficit recovery liability reflects this plan. The provision figures have been produced using the following assumptions:

Discount rate Pensionable salary growth	2023 % p.a. 5.50 2.52	2022 % p.a. 3.31 2.92

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*		2023 £’000 2,676 (159) 89 (621)	2022 £’000 1,037 (54) 9 1,684
		1,985	2,676

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

The total credit (2022: charge) to the profit and loss account is £136k (2022: £2,198k). Deficit recovery contributions due within one year for the College are £170k (2022: £171k).

Church of England Funded Pensions Scheme (CEFPS)

The College participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Responsible Bodies.

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 each specific Responsible Body, and this means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the Statement of Comprehensive Income in the year are contributions payable towards benefits and expenses accrued in that year (2023: £8k, 2022: £8k), plus the figures highlighted in the table below as being recognised in the Statement of Comprehensive Income, giving a total charge of £6k for 2023 (2022: £8k).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out as at 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on assets of £2,720m and a funding target of £2,160m, assessed using the following assumptions:

An average discount rate of 2.7% p.a.;
RPI inflation of 3.6% p.a. (and pension increases consistent with this);
CPIH inflation in line with RPI les 0.8% pre 2030 moving to RPU with no adjustment from 2030 onwards;
Increase in pensionable stipends in line with CPIH.;
Mortality in accordance with 90% of the S3NA tables, with allowance for improvements in mortality rates in line with the CMI2020 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7, an initial addition to mortality improvements of 0.5% p.a. and an allowance for 2020 date of 0% (i.e. w2020 = 0%)

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. An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from 1 April 2022. Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the Scheme was in surplus.

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

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. However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 30 June 2023 is nil. 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*		2023 £’000 2 - (1) (1)	2022 £’000 4 (2) - -
		-	2

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. No assumptions are needed for December 2022 as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2021 since pensionable stipends for the remainder of the recovery plan were already known.

inder of the recovery plan were already known.
Discount rate Price inflation Increase to total pensionable payroll	December 2022 % p.a. n/a n/a n/a	December 2021 % p.a. 0.0 n/a -1.5	December 2020 % p.a.	December
			0.2 3.1 1.3

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.

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.

Notes to the financial statements

27. RELATED PARTY TRANSACTIONS (continued)

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 Total		2023 Number 4 3 1 1 1 - - 1 1 - - 1 - 1	2022 Number 5 1 2 2 1 1 1 1 - 1 - 1 - -
		14	16

Disclosures in 2022 have been updated to exclude other benefits received in addition to salary to be consistent with presentation in the current year and requirements of the RCCA.

The total Trustee salaries in the year were £576,370 (2022: £595,477).

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		2023 Total £’000 576 12 72 67	2022 Total £’000 595 11 95 70
		727	771

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 2023, Aquila Investments Ltd had outstanding unsecured loans of £3,195k (2022: £2,894k) due from Waterbeach Development Company LLP, a joint venture in which it holds a 17.5% share. These comprise a £2,810k (2022: £2,509k) 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 £385k (2022: £385k) 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.

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. The net assets of the School, including restricted and endowment funds with restricted purposes for the School, were also transferred to the School on 10 September 2021. The fair value of the assets transferred was £5,416k and this was recorded as expenditure in the College Statement of Comprehensive Income. Consideration received from the School was £nil.

Notes to the financial statements

28. SUBSIDIARY UNDERTAKINGS AND JOINT VENTURES

Subsidiaries

The College’s principal direct and indirect subsidiary and dormant subsidiary undertakings at 30 June 2023 and 30 June 2022 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		limited by guarantee

Joint Ventures

The College’s principal direct and indirect trading joint venture undertakings at 30 June 2023 and 30 June 2022 are set out below.

Joint venture	Activity	Country of Incorporation	% Holding
Waterbeach Development	Property development	United Kingdom	17.5%
Company LLP
Parlington LLP	Investment Property Management	United Kingdom	50%
(incorporated 24 April 2023)

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

Professor Graham Ladds

Principal Advisers

GOVERNANCE

OBJECTS AND AIMS

Objects

Aims

ACTIVITIES, PERFORMANCE AND FUTURE PLANS

Introduction

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