## **ST EDMUND’S COLLEGE**
**ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2022**
**St Edmund’s College**
## **Index**
## **Page No**
- 1-2 College Details
- 3-12 Financial Report to the Council and Governing Body
- 13 Corporate Governance
- 14 Statement of Internal Control
- 15 Statement of the Responsibilities of the College’s Charity Trustees
- 16-18 Independent Auditors’ Report to the Council and Governing body of St Edmund’s College
- 19-23 Statement of Principal Accounting Policies
- 24 Statement of Comprehensive Income and Expenditure Account
- 25 Statement of Changes in Reserves
- 26 Balance Sheet
- 27 Cash Flow Statement
- 28-40 Notes to the Accounts
**St Edmund’s College**
## **College Details**
## **Year ended 30 June 2022**
The College’s full legal name is The Master, Fellows and Scholars of St Edmund’s College in the University of Cambridge, a body incorporated under Royal Charter. It is a registered charity (registration number 1137454), with its registered office at Mount Pleasant, Cambridge CB3 0BN.
The names of the members of the Council during the year were as follows:
Master Vice-Master Senior Tutor Bursar Secretary of the Governing Body Dean
Ms Catherine Arnold Dr Diana Wood (to 30.9.22) Dr Gemma Burgess (from 1.10.22) Dr Judith Collis (Bunbury) Mr Graham Watson Dr Kate Brett Fr Ed Hone
Dr Rafia Al-Lamki Dr Sandra Brunnegger (to 30.9.22) Mr Gordon Chesterman (to 30.9.21) Professor Stephen Jenkins (to 30.9.21) Dr Gemma Burgess Professor Eugene Murphy Dr Tina Barsby (from 1.10.21) Dr Gitajali Yadav (from 1.10.21) Dr Vittorio Montemaggi (from 1.10.22)
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**St Edmund’s College**
## **College Details**
## **Year ended 30 June 2022**
Principal advisers:
Auditors: Peters Elworthy & Moore Station Road Cambridge CB1 2LA Investment Managers: Cambridge University Investment Office (managing the Endowment Fund) 30 Station Road Cambridge CB1 2RE Legal Advisers: Taylor Vinters Merlin Place Milton Road Cambridge CB4 0DP Bankers: Barclays 9-11 St Andrew’s Street Cambridge CB2 3AA
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**St Edmund’s College**
## **Financial Report of the Trustees**
## **Year ended 30 June 2022**
St Edmund’s College was founded in 1896 and was granted its Royal Charter in 1998. Today St Edmund’s is an autonomous, self-governing community of scholars, and one of the 31 colleges within the University of Cambridge.
The origins of the College lie in the creation of a dedicated House for Roman Catholics, after the repeal of the final Test Acts in the 1870s (which had excluded Roman Catholics, Jews and Non-Conformists from various aspects of public life, including full participation in the University of Cambridge). St Edmund’s is the only full College in Cambridge or Oxford with a Roman Catholic Dean and Chapel.
This drive for inclusion, and a commitment to provide a space where postgraduates and mature undergraduates, and affiliated students from any and all backgrounds can feel welcomed within collegiate-Cambridge, remains central to the College’s ethos and mission today. In 1969 the College accepted its first female student, becoming the first of the 31 Colleges in Cambridge today to accept both men and women as students. Today the College is one of the most international within Cambridge, with over 70 nationalities represented within the student body.
Diversity of intellectual pursuit, and belief in the benefits of fostering cross-disciplinary discussion and debate are central to the College’s purpose. The College is one of only 12 Colleges in collegiate-Cambridge, and the only mature college, to offer undergraduate degrees in all subjects offered for Tripos examination, as well as accepting graduate students on all courses provided by the University.
The Governing Body, comprised of 65 Fellows, is deliberately drawn from across a wide range of disciplines and contains non-academic members, reflecting the equal importance for the College of our students and members who are focussed primarily on research and those who are in Cambridge for a period, before returning to non-academic positions around the world. To support the mission of the College has 140 non-Governing Body senior members. These are composed of Honorary, Life, Emeritus and Bye Fellows, as well as Senior Research Associates, Research Associates, Post-Doctoral Research Associates, Fellows Commoner, Senior Members and Visitors to the Senior Combination Room. Bringing outstanding individuals from a range of academic and professional backgrounds into the intellectual and communal life of the College is of benefit to the College community and supports delivery of our charitable objects.
St Edmund’s is proud to provide a welcoming space, in a spirit of active and mutual respect, for people of all faiths and none. This remains a defining feature of the College and responds, in a contemporary setting, to our founders’ focus on ensuring a space within the University of Cambridge for a previously excluded religious minority. The Von Hügel Institute, an international research hub inspired by Catholic thought and culture, and focussed on interdisciplinary dialogue on contemporary global realities, is a formal part of the College. The Woolf and Faraday Institutes, both focussed on interdisciplinary encounters with a focus on religion(s), are affiliated to the College. The College also has a number of scholarships to foster this diversity, including Randeree and Aziz scholarships for British Muslims.
The College has seen a period of significant growth this century. The student body in this financial year, stood at 641, (representing 585 full-time equivalents), up from 290 in 2000. Over the last twenty years the College’s estate has significantly expanded. Following the opening of Mount Pleasant Halls in September 2019 the College now has 491 units of accommodation, of mixed size, on a leafy 9-acre site some of which are sub-let to other Cambridge Colleges.
An important feature of collegiate life at St Edmund’s is the lack of divisions between students and senior members, whether when dining or in the use of the College’s recreational facilities. Senior members and students are encouraged to form joint societies and find opportunities for shared intellectual and recreational endeavour. In recognition of the mature status of the College, families are welcomed in College, including access to informal dining and a range of family-friendly accommodation on site.
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**St Edmund’s College**
## **Financial Report of the Trustees**
## **Year ended 30 June 2022**
## **Scope of the financial statements**
## **Objectives**
The College’s charitable objectives are:
- 1) To advance education, religion, learning and research in the University of Cambridge
- 2) To provide for that purpose a college for men and women who shall be members of the University wherein they may work for degrees of the University or may carry out graduate or other special studies at Cambridge
## **Public Benefit**
The College provides, in conjunction with the University of Cambridge, an education for mature undergraduate (those aged 21 and above) and postgraduate students, which is recognised internationally as being of the highest standard.
This education develops students academically and advances their leadership qualities and interpersonal skills, and so prepares them to play full and effective roles in society.
To further its objectives the College provides the following:
## _Education & learning_
- Teaching facilities and individual or small-group supervision for undergraduates, as well as pastoral, administrative and academic support for all students through its tutorial and teaching systems
- Social, cultural, religious, musical, recreational, and sporting facilities which enable each of its students to realise their academic and personal potential to the full, while studying at the College
- Supporting the education, learning and research of its students and Fellows by promoting interaction across disciplines, providing opportunities and facilities for seminars, conversation, and research collaboration, and developing a community of researchers.
## _Research_
- Providing stipendiary and non-stipendiary Research Fellowships to outstanding academics in the early stages of their careers, which enables them to develop and focus on their research in this formative period before they undertake the full teaching and administrative duties of an academic post
- Fostering early career researchers through an active cohort of Post-Doctoral Research Associates, with a dedicated cohort convenor
- Developing academic networking by encouraging visits from outstanding academics as Visiting Fellows (including a Shackle Visiting Fellow, to be appointed every 2-3 years and focused on the history of Economics, as part of the Shackle bequest), Visiting Scholars, Senior Research Associates and Research Associates.
## _Religion_
- Supports the Chapel as a place of religious worship and personal reflexion, and holds a variety of religious services, which are open to the public, as well as members of the College
- Nurtures, through the Dean, who is a Roman Catholic priest, the emotional, mental and spiritual well-being of all members of the College community, whatever their faith tradition, or none
- Maintains its historical connection with the Roman Catholic Church, including through the work of the Von Hügel Institute – an international and interdisciplinary research hub inspired by Catholic thought and culture, focussed on contemporary global realities, and dedicated to encounter, dialogue, and transformation
- Welcomes members of all faiths and none and supports interdisciplinary encounters from the perspective of religion(s) through the affiliation of the Woolf and Faraday Institutes.
The College admits as students those who have the highest potential for benefiting from the education provided by the College and the University, regardless of their financial, social, religious or ethnic background.
To fulfil its charitable purposes, the College has a number of student-focussed academic and community roles. In 2021/22 these included: tutors (14); directors of studies (37); supervisors (~60); and college teaching officers (1/3). Fifteen members of our Governing Body are University Teaching Officers.
The College also appoints tutors to a number of specific roles each year, in 2021/22 these were: Senior Tutor; Admissions Tutor; Deputy Admissions Tutor; Careers Tutor; Prizes Tutor; Families Tutor; Rooms Tutor; Special Cases Tutor; Finance Tutor; Disabilities Tutor.
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**St Edmund’s College**
## **Financial Report of the Trustees**
## **Year ended 30 June 2022**
The College maintains a modern Library and other study and IT facilities, providing a valuable academic resource for all members of the College. External facilities including wooden gazebos to improve outdoor social and study space and an outdoor gym were added to reduce Covid-19 risk.
To raise educational aspiration and attract outstanding applicants who might not otherwise have considered applying to St Edmund’s or to the University of Cambridge, the College holds open days and provides guidance and information for prospective applicants. This is via the College’s website and through the admissions staff.
## **The Impact of COVID-19 on College Activities**
During the year, as the pandemic move through its different phases, the College maintained close monitoring of the COVID situation, with regular meetings of key staff to review current COVID cases, along with reviewing the latest Government and University guidance and recommendations. Clear and regular communications were provided. Major College events were carefully risk assessed and social distancing measures put in place (when required) for events including Matriculations in the Chapel and formal dinners.
The College continued supporting students affected by COVID through their College tutors as well as practical measures. The household groupings and other interventions from the previous 2020/21 academic year were maintained. Students had access to the University’s symptomatic testing facilities, and students participated in weekly asymptomatic testing on a voluntary basis for part of the year.
The pandemic impacted on the matriculation and graduation of student ceremonies. The College adapted its format so that while not ideal the process of matriculation and graduation continued.
The College being closed to visitors for part of the year impacted upon the income the College was able to generate by hiring out its facilities.
Some lectures, supervisions and tutor meetings remained online although many departments looked towards moving back to face-to-face interactions as far as possible with students (albeit with additional provisions in place such as lecture recordings and online examinations for some subjects).
## **Examination results**
The overall percentage of undergraduate students obtaining a Good Honours degree (Class I and Class II Division I combined) in 2021/22 was c75%. This is close to the University as whole where the average percentage of students obtaining a Good Honours classification across all colleges this year was 80%. It is the University-wide figure has fallen from 92.5% last year and the College’s from 80% last year, however the mode of examinations during Covid-19 pandemic means that a direct comparison is difficult.
Our Masters students showed a good academic performance with 97% passing and 15% achieving a distinction, while in Undergraduate Law, one of our largest cohorts, 44% achieved a first and 50% a 2.i.
During the academic year, 39 St Edmund’s students successfully completed their PhD degrees.
## **Scholarships**
Scholarships and awards of £666k (£480k 20/21) were awarded during the year.
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**St Edmund’s College**
## **Financial Report of the Trustees**
## **Year ended 30 June 2022**
## **Prizes & Other Funds**
In 2021/22 the College awarded prizes, including those from donors, for outstanding academic or community achievement to the value of £7,100 (£6,950 in 2020/21), these included:
- 42 College prizes (outstanding academic achievement)
- 4 Martlet awards (for students who have overcome personal difficulties)
- 1 Tutorial awards (for outstanding community achievement)
|**Fund**|**Description**|**Total £**
**2021/22**|**Total £**
**2020/21**|
|---|---|---|---|
|Financial
Support
for
students
in
residence,
including
the
Santander
Universities
award
for
hardship.|Assistance including for unforeseen
hardship and disability support e.g.,
dyslexia testing or computer software|63,300 (123
awards)|44,290 (59 awards)|
|Academic Travel|For research,academic conferences etc.|1,100(2 awards)|4,352(8 awards)|
|Language & Amenities|Activities and equipment etc. not
connected directly to academic work,
including language courses.|2,500 (11 awards)|1,570 (7 awards)|
|10thTerm Funding|For PhD students who overrun their nine
term funding and require support while
submittingtheir thesis|5,500 (3 awards)|5,500 (3 awards)|
|SantanderUniversities|Travelawards|-|-|
|Bell, Abbott and Barnes|Assistance for unforeseen hardship and
disability support|6,400(10 awards)|4,000 (9 awards)|
## **Bursaries**
To assist non-ELQ undergraduates of limited financial means, the College provides bursary support through the Cambridge Bursary Scheme, a scheme operated in common with the University and other colleges. For the academic year 2021/22, awards totalling £270k were made (£226k in 2020/21). The net cost to the College for participation in this scheme was £39k after contributions by the University and other colleges of £270k. The scheme is widely advertised on the University website, on the College website, and via our admissions materials.
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**St Edmund’s College**
## **Financial Report of the Trustees**
## **Year ended 30 June 2022**
## **Operating and Financial Review**
## **1. Student Numbers**
The College admits full-time and part-time postgraduate students studying for PhDs and Master courses, and full-time mature undergraduate students aged 21 and over. Total student numbers in 2021/22 (including part-time postgraduates and postgraduates writing up or under examination) of 676 represented an increase of over 5% on the previous year (641). This is the largest number of students the College has had. The following chart shows the figures for full-time students over the past ten years as of 1 January each year:
The
College has a commitment to managed growth, in line with the University of Cambridge’s ambitions. There is significant benefit to the College community to ensure sufficient mature first-degree undergraduate and PhD students attend. These students typically complete a minimum of three-years and provide academic and community continuity within the student body and the College community.
St Edmund’s remains one of Cambridge’s most international Colleges; 63% of the 2021/22 entrants (60% in 2020/21) being non-UK students.
## **2. Accommodation & Conferencing**
Overall, the College had 491 units of accommodation, mainly for single occupation, but with 81 units available for multiple occupancy, including 6 family flats. The College has two accommodation sub-contracts, one with Howard Osborne and the other with Darwin College representing 116 units within Mount Pleasant Halls. The contracts commenced in 2019 with Howard Osborne for 20 years and Darwin College for 5 years.
Conferencing income, normally received in the beginning of the financial year, was continued to be impacted by the pandemic. We received £40k income from conferencing compared to zero in the previous financial year.
## **3. Income and Expenditure**
The Statement of Income and Expenditure (SOCIE) shows total comprehensive surplus for the year of £374k.
Academic income, at £3,289k, was £704k higher than the previous year (£2,585k). Of this total, £2,268k is made up of fees paid by or on behalf of students, as set out in detail in note 1. Within academic income are included the contributions
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**St Edmund’s College**
## **Financial Report of the Trustees**
## **Year ended 30 June 2022**
from the University and other colleges for Cambridge Bursaries. £270k appears as income from this source, with a corresponding figure in expenditure of £309k creating a net cost to the College of £39k.
Residential and catering income, at £4,178k, was £525k higher than the previous year (£3,652k).
There was a further increase in endowment and investment income (from £306k to £344k), mainly as a result of increased investment in the Cambridge University Endowment Fund made during 2019/20 and the performance of the Fund. An unrealised loss on investments of £95k is shown.
Donations are classified as unrestricted or restricted donations for spending in the current year; new permanent endowments, for spending over the longer term; or donations to support building or refurbishment projects. Total donation, endowment and grant income as shown in the SOCIE was £283k, compared with the previous year’s figure of £204k.
The College is very grateful for the contribution to its income from the Colleges Grant Fund of £1,203k disbursed to the College in FY 2021/22 to mitigate against losses caused by the Covid pandemic. This donation has been given without restriction. (2020/21 £1,088k unrestricted donation.)
Total expenditure within the SOCIE was £9,145k, including depreciation of £1,099k (which represents 12% of expenditure). Mount Pleasant Halls has added significantly to the depreciation expenditure. Pension costs exclude a decrease in the CCFPS liability of £270k, as this is shown as an actuarial gain below the Surplus for the Year.
## **4. Investments**
Since March 2018 the College’s endowment has been invested in Cambridge University Endowment Fund (CUEF).
CUEF’s long-term investment objective of CPI+5%, net of fees, to fund distributions to investors of around 4% of the net asset value per year. For the year to 30[th] June 2022 CUEF delivered a net return of -0.3%, compared to a passive composite benchmark return of -6.9%.
The College’s investments in CUEF were as follows:
||30 June 2022|30 June 2021|
|---|---|---|
|Unit Value|£66.98|£67.68|
|Total number of units|135,760|135,760|
||||
|Value ofunits (unrestricted)|7,135,512|7,210,084|
|Value of units (restricted)|1,957,693|1,978,153|
|Total value ofunits|9,093,205|9,188,237|
The College received distributions totalling £316k, giving a distribution yield of 3.5% on the average capital value.
The asset allocation of CUEF was as follows:
||30 June2022|30 June2021|
|---|---|---|
|Public equity|42%|43%|
|Private equity|24%|20%|
|Absolute return and credit|20%|14%|
|Real assets|11%|10%|
|Fixedinterest/cash|3%|13%|
## **5. Reserves**
The College does not hold free reserves but instead relies on the continued success and reputation of the University of Cambridge to attract students, therefore providing it with income in the form of tuition fees and other maintenance charges. The long-term aim is to provide unrestricted reserves to the value of three months of usual operating expenditure. To this end, it continues to seek funding from a wider pool of potential donors.
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**St Edmund’s College**
## **Financial Report of the Trustees**
## **Year ended 30 June 2022**
## **6. Fundraising and Alumni Relations**
Fundraising is a major part of the role of the Development & Alumni Relations Office, which was established in 2011. The College is registered with the Fundraising Regulator.
Fundraising is primarily focussed on student bursaries, scholarships and awards; projects supporting the student experience; the endowment, for spending over the longer term; or capital grants, to support building or refurbishment projects.
Due to the College’s rapid growth over the last 40 years, the College has a limited pool of meaningful philanthropic relationships, both with alumni and non-alumni, of a scale that can make a difference to the College’s finances. The priority of the development team therefore remains to grow the College’s major gift programme with support from alumni and nonalumni donors, cementing a regular giving programme, enhancing donor stewardship, working on improving organisational systems and processes, and seeking engagement with donor prospects interested in the mission and purpose of the College, its future and its heritage.
Fundraising received in the year focused on funding for scholarships and bursaries, hardship and travel grants, improvements to the College estate and improving the student experience provision.
The Development Office has continued to build relationships with the wider membership of St Edmund’s and maintains contact details for over 5,200 alumni, of whom more than 50% live outside the UK in over 129 different countries. An e- newsletter is emailed to these members three times per year and a Donor Report/Alumni magazine is sent annually to over 400 donors and friends. A reunion weekend for alumni is held each September.
The College also ran a telephone campaign in March 2022– focussed on alumni living across the world. This was focussed on increasing regular giving from alumni and recruiting new donors. It was a success, drawing on student-callers who welcomed the opportunity to tell alumni about their positive experience of St Edmund’s support for them and their families, while they lived and studied in College during the UK’s national lock-down.
In addition to seeking financial and other support for the College, the Development Office is also responsible for broader alumni relations, events and both internal and external communications, social media, and the College website. There have been no formal complaints made about fundraising (0 prior year).
## **7. Remuneration Policy**
No trustee receives any remuneration, or any other benefit, for acting as a trustee of the College. Trustees only receive out-of-pocket expenses, incurred in the course of carrying out their duties as trustees. Outside their role as a Trustee of College, the Master and any Fellow of College may receive such remuneration and any other benefits in respect of any employment, or College Office or College Post, or other post or appointment, as the College’s Statutes and Ordinances authorise.
The College has a Remuneration Committee made up of four members of the Governing Body and one non-College member. Among other duties, the Remuneration Committee is charged with the scrutiny and management of College policies on remuneration and benefits payable to the Master and Fellows of the College. These can include: remuneration and benefits; salary and stipends; honoraria, including bonuses; terms & conditions of employment; and any scheme of allowances or benefits, including pensions.
Details of remuneration for key management personnel are outlined on page 31. Details of related party transactions with Trustees are outlined on page 39.
## **8. Principal Risks and Uncertainties**
The College Council is ultimately responsible for identifying and managing the major risks facing the College. The management of risk is delegated in the first instance to certain named personnel including the Bursar, the Domestic Bursar, the Head of Facilities and the Governance, Risk and Compliance Manager, and more broadly through specific risk management processes (including risk assessment) and awareness to all key College stakeholders.
The College seeks to consider risk management in all aspects of its functions, aiming to achieve the appropriate balance between taking the necessary steps to mitigate risk insofar as is possible, whilst maintaining the required focus on the delivery of the College’s objectives, a failure to comply with those charitable objectives being in and of itself, a risk concern.
The Council maintains a risk register, together with relevant risk assessment documentation for specific individual purposes. Following significant work on the identification and assessment of the College’s most significant risk areas, the risk register has been subject to a full review and refresh in the last financial year, and the impact of contributory factors and mitigating actions on overall risk ratings will be consistently monitored so that the register is continually updated.
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**St Edmund’s College**
## **Financial Report of the Trustees**
## **Year ended 30 June 2022**
The principal risks – and those with the highest current risk ratings as reflected in the Risk Register – are around the need consistently to ensure that policies and processes are fit for purpose, and financial sustainability. Of particular concern is the impact of student numbers – which are informed by University policy and thus over which the College does not have control – on the College’s overall financial position.
Beyond the above, the principal risks and uncertainties facing the College are:
**External political and economic threats** : It is anticipated that two particular current external factors may provide uncertainty and risk to the College’s position. The first of these is that the decision to leave the European Union may continue to have an ongoing adverse effect. The second of these is the war in Ukraine. These factors may both impact upon the College because of uncertainty in international student recruitment; employment of EU workers; increases in costs e.g. food and fuel/energy due to the effect on supply lines (in particular given the situation in Ukraine). Given that the College is highly international, there is a continuing risk that international student numbers could fall as a consequence of the UK’s global standing post-Brexit or in response to the UK’s foreign and domestic policy toward specific nations (including, potentially, its general of support for the Ukraine). Although the College has concentrations of students from specific countries, with the UK representing around a third of our student population, no other country represents more than 13% of our intake. The student body is drawn form a wide range of different countries and subject area. The College is also part of a globally renowned centre of academic excellence.
**Economic factors which might affect the College’s source of income** : flowing from the principal risk around student admissions numbers is a risk of reduction in student fee and room rent income. Together these represent the greatest source of income to the College. Accordingly, achieving our student number targets and maximising our room rental income are both critical to our financial model. There are a number of external factors that could impact upon the College’s income as has been recently seen by the Covid-19 pandemic. The demand for accommodation routinely outstrips supply. Fee income is more sensitive to shifts in student numbers and any downward changes in fee structures would have an impact.
## **General economic trends and cost of living**
The precarious wider economic position, high rate of inflation and general cost of living increases are likely to impact the College’s financial position. In addition to the effect of inflationary increases on general College running costs – and in particular energy prices, the significantly higher cost to students of a Cambridge degree over non-collegiate universities is likely again to affect student numbers.
**Staff pension costs** : shifts in pension liabilities can have a significant impact on the College’s accounts in a particular year and the College has a number of staff in two defined benefit schemes, USS and CCFPS, both of which are in deficit (see Note 18). As at 30 June 2022 there were 9 staff members in USS (whose salaries represented 14% of the June 2022 payroll) and 1 members of CCFPS. The College is making deficit reduction contributions to both schemes. The employer contributions to CCFPS increased in 2021 to 28.44% of salary and the employer contributions to USS increased in 2021 to 21.4% (October 2021 to March 2022) and 21.6% from April 2022. Consultation is underway with organisations that are members of the USS to agree the way in which the deficit of the fund is recovered. There is a significant risk that contributions to this fund will increase and that there will be a change to benefits.
The CCFPS has been closed to new entrants since the introduction of a defined contribution scheme for non-academic staff in 2014, which helps to manage the risk of the College’s liabilities increasing.
The risk of on-going industrial action by academics against the broader University and/or colleges as a result of suggested changes to pension benefits could create unrest in the student body.
**Cost of providing support services, buildings and facilities which are of a suitable level to meet the needs of students, staff and members** : the cost of providing mental health, welfare and student experience provision is increasing each year across collegiate-Cambridge and St Edmund’s needs to ensure it maintains acceptable levels of support to students in comparison with other Colleges. Mount Pleasant Halls has provided extremely attractive, modern accommodation for students, but future refurbishment to an equivalent standard and upgrading of facilities across the remainder of the site, including additional shared space will require new fundraising or other income generation.
**Reputational risk.** The College’s income is intrinsically related to its overall reputation as a centre of academic excellence – both in its own right, and through its status as a constituent college of the University of Cambridge. In addition, the College is reliant upon its reputation in a broader sense as a friendly, welcoming, properly-run, safe and enjoyable institution to be a part of. Should the College’s reputation suffer in any respect – whether as the result of a discrete event or issue, or as part of any wider concern in relation to the experience it offers or to its academic prowess – this is highly likely to affect future student application numbers and, accordingly, income.
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**St Edmund’s College**
## **Financial Report of the Trustees**
## **Year ended 30 June 2022**
## **9. Going concern**
The College has undertaken financial modelling work to demonstrate that it is a going concern. This work considered various scenarios in which the main drivers for income have been assessed based on different outcomes for tuition fees, rents, conference and external events and donations alongside inflation. This has been extended for 10 year financial plan including cashflow modelling.
## **10. Progress made during the year and future plans**
As the UK began to recover from the Pandemic so College life returned to normal. By the end of the academic year the rhythm of College life had returned including in person lectures and supervision in some subjects. Students were supported as the University returned to in-person examinations as some of them had not experienced the University inperson examination process. The students held their first May Ball since 2018. Graduations returned to being in person with limited numbers and extra graduations were planned to celebrate those who had graduated and address the backlog of graduations, that, at the end of the academic year persisted.
The anticipated student growth caused the College to prepare itself for increase in student numbers, it did this in several ways. The first was to increase the College’s staff capacity required to ensure the College continued to provide the students with the services they needed. In particular staffing in the Tutorial Office which includes student welfare and wellbeing was increased from 6.0 fte to 9.0 fte in the last 3 years required to manage the 92% growth in student numbers over the last 10 years.
During the year the College submitted planning application for a new Porters’ Lodge and refurbishment of the ground floor of the Norfolk building to increase the capacity for student and senior membership gatherings. The decision on the application was not known when this report was written.
Internal audits were undertaken in the key functions of finance, health and safety and IT. These audits provided focused activity to ensure the College was ready for the planned increase in student numbers by improving its systems and procedures.
Looking forward the College is creating a number of strategies needed to delivery against its agreed vision. It will also continue to embed its new values of inclusive, open-minded and integrity.
In September 2021 the College began the process of updating its mission and vision. All members of College were given the opportunity to participate in a variety of workshops held during the year. The process started by exploring what the possibilities for the vision were and then moved into evaluating the ideas generated in the first workshops moving to agreeing which of the ideas were carried forward.
## _**Empowering global talent to shape the future.**_
_**We form global thinkers and leaders who bridge disciplines and cultures to solve humanity’s challenges St Edmund’s builds a better future by developing, supporting and connecting a community of global talent, within the University of Cambridge, inspired to learn from difference and united in a commitment to improve the future for individuals, societies and the world.**_
The above mission was agreed at the June 2022 meeting of the Governing Body.
To begin to fulfil this vision the following actions will guide the College’s activity:
- Become the most international college in Cambridge (routinely rather than regularly) and a first-choice college for globally-minded students over 21
- Become a leader in widening access and participation for post-graduates
- Become a college of choice for visiting fellowships from global leaders in their field
A community framework was also known as THRIVE has been developed to guide the College as its strategies and plans are delivered.
**T** rust: we welcome all members as equals and in turn expect members to contribute to the community and take responsibility for their actions. Our members build trust through openness, integrity, and consideration for others.
**H** igher purpose: we recognise the importance of cultivating mind, body and spirit. Our members are encouraged in a desire to serve beyond the self and to grow in understanding and wisdom.
**R** esilience: we encourage responsibility towards the self and others and provide support that acknowledges the individual and reflects the needs of a diverse, global community. Our members are helped to develop the mind-set and skill-set to thrive in a rapidly changing world.
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**St Edmund’s College**
## **Financial Report of the Trustees**
## **Year ended 30 June 2022**
**I** magination: we are open to new ways of thinking and explore the world both as it is and as it ought to be. Our members are encouraged to move beyond academic specialism or personal identities to imagine new possibilities and innovate for the future.
**V** oice: we foster productive, vigorous and inclusive discourse, learning to engage and influence across cultures and disciplines. Our members exchange ideas and views, developing the skills and confidence to listen and communicate with impact and respect, including through challenging conversations
**E** njoyment: we want our members to enjoy their time with us; there is space at St Edmund’s for enthusiasm and exploration as well as excellence.
Page: 12
**St Edmund’s College**
## **Corporate Governance**
## **Year ended 30 June 2022**
1. The following statement is provided by the Trustees to enable readers of the financial statements to obtain a better understanding of the arrangements in the College for the management of its resources and for audit.
2. The College is a registered charity (registered number 1137454) and subject to regulation by the Charity Commission for England and Wales. The members of the Council are the charity trustees and are responsible for ensuring compliance with charity law.
3. The Trustees are advised in carrying out their duties by a number of Committees, being:
- Academic Agreements
- Accommodation
- Board of Discipline
- Careers and Enterprise
- Dean’s Committee
- Development and Alumni Relations
- Estates
- Ethics
- Faraday Institute
- Finance and General Purposes
- Investment
- Library
- Nominations
- Remuneration
- Shackle
- Staff Re-grading
- Statutes and Ordinances
- - Stewards - Tutorial - Von Hugel Institute
- Wellbeing and Safety
- - Wine
- Woolf Institute
- - Works of Art
4. The principal College Officers are the Master, Vice-Master, Bursar, Senior Tutor, Dean and Development Director.
5. It is the duty of the Finance & General Purposes Committee to keep under review the effectiveness of the College’s internal systems of financial and other controls; to advise the Trustees on the appointment of the external Auditor; to consider reports submitted by the Auditor; to monitor the implementation of recommendations made by the Auditor; to monitor risk management and control arrangements; and to make regular reports to the Trustees by way of minutes of its meetings. Membership of the Finance Committee includes all the principal College Officers, the Second Bursar, other appropriate members of the Governing Body, and two officers of the Combination Room.
6. There is a Register of Interests of Trustees and Governing Body members. Declarations of interest are made routinely at all Governing Body, Council and committee meetings.
7. The College’s Trustees during the year ended 30 June 2022 are set out on page 1.
Page: 13
**St Edmund’s College**
## **Statement of Internal Control**
## **Year ended 30 June 2022**
1. The Trustees are 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 and Governing Body are responsible, in accordance with the College’s Statutes.
2. 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.
3. The systems of internal control are designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. This process was in place for the year ended 30 June 2021 and up to the date of approval of the financial statements.
4. The Trustees’ review of the effectiveness of the system of internal control is informed by the work of the various Committees, Bursar, 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.
## **Mr Graham Watson Bursar**
## **5 December 2022**
Page: 14
**St Edmund’s College**
## **Statement of Responsibilities of the College’s Charity Trustees**
## **Year Ended 30 June 2022**
The Council in conjunction with the Governing Body is responsible for preparing the Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards.
The College’s Statutes and the Statutes and Ordinances of the University of Cambridge require the Governing Body to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the College and of the surplus or deficit of the College for that period. In preparing those financial statements the Council in conjunction with the Governing Body is required to:
- Select suitable accounting policies and 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 the going concern basis unless it is inappropriate to presume that the College will continue in operation.
The Council in conjunction with the Governing body is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the College and to 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 College and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Mr Graham Watson Bursar**
## **5 December 2022**
Page: 15
**St Edmund’s College**
## **Independent Auditors’ Report to the Council and Governing Body of St Edmunds College**
## **Year Ended 30 June 2022**
## **Opinion**
We have audited the financial statements of St Edmund’s College (the ‘College’) for the year ended 30 June 2022 which comprise the Statement of Comprehensive Income and Expenditure, the Statement of Changes in Reserves, the College Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of 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 College’s affairs as at 30 June 2022 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- • have been prepared in accordance with the requirements of the Charities Act 2011 and the Statutes 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 Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the College in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’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 College'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 Council are responsible for the other information. The other information comprises the information included in the Annual Report other than the financial statements and our auditors’ 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.
In connection with our audit of the financial statements, 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 course of 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Page: 16
**St Edmund’s College**
## **Independent Auditors’ Report to the Council and Governing Body of St Edmunds College**
## **Year Ended 30 June 2022**
## **Opinion on other matters prescribed by the Statutes of the University of Cambridge**
In our opinion based on the work undertaken in the course of the audit:
- The contribution due from the College to the University has been 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.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the College and its environment obtained in the course of the audit, we have not identified material misstatements in the Financial Report to the Council and Governing Body.
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of the Council**
As explained more fully in the responsibilities of the Statement of the Responsibilities of the College’s Charity Trustees set out on page 14, the Council 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 Council 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 Council are responsible for assessing the College’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 College or to cease operations, or have no realistic alternative but to do so.
## **Auditors’ responsibilities for the audit of the financial statements**
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 Auditors’ 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the College through discussions with Trustees and other management, and from our knowledge and experience of the education sector;
- we obtained an understanding of the legal and regulatory framework applicable to the College and how the College is complying with that framework;
- we obtained an understanding of the College’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance;
- we identified which laws and regulations were significant in the context of the College. The Laws and regulations we considered in this context were Charities Act 2011, the Statutes of the University of Cambridge and taxation 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 College’s ability to operate or to avoid material penalty; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
Page: 17
**St Edmund’s College**
## **Independent Auditors’ Report to the Council and Governing Body of St Edmunds College**
## **Year Ended 30 June 2022**
We assessed the susceptibility of the College’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policy were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reviewing minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with relevant regulators and the College’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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/auditorsresponsibilties. This description forms part of our auditors’ report.
## **Use of our report**
This report is made solely to the College’s Council as a body, in accordance with College’s statutes, the Statutes of the University of Cambridge and the Charities Act 2011. Our work has been undertaken so that we might state to the Council those matters we are required to state to them in an Auditors’ 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 College and the College’s Council as a body, for our audit work, for this report, or for the opinions we have formed.
## **PETERS ELWORTHY & MOORE**
Chartered Accountants and Statutory Auditors
Salisbury House Station Road Cambridge CB1 2LA Date:
Peters Elworthy & Moore is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
Page: 18
**St Edmund’s College**
## **Statement of Principal Accounting Policies**
## **Year Ended 30 June 2022**
## **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, using 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.
## **Basis of accounting**
The financial statements have been prepared under the historical cost convention, modified in respect of the treatment of investments which are included at valuation.
## **Going Concern**
The financial statements have been prepared on a going concern basis. The College has prepared forecasts beyond the 30 June 2022 year-end up to financial year end 2024. The College has also set a detailed budget plan for the financial year 2023/24. In addition, a 10 year scenario forecasting model and cash flow plan has been prepared. These financial plans demonstrate that the College has sufficient resources to meet liabilities as they fall due. The Trustees considers preparation of these financial statements using a going concern basis to be appropriate.
## **Recognition of income**
## **a) Academic fees**
Academic fees are recognised in the period to which they relate and include all fees chargeable to students or their sponsors.
## **b) Donations and endowments**
Non exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised with the Statement of Income and Expenditure when the College is entitled to the income. Income is retained within restricted reserves until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer.
Donations and endowments with restrictions are classified as restricted reserves with additional disclosure provided within the notes to the accounts.
There are four main types of donations and endowments with restrictions:
1. Restricted donations – the donor has specified that the donation must be used for a particular objective.
2. 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.
3. Restricted expendable endowments – the donor has specified a particular objective and the College can convert the donated sum into income.
4. 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.
Donations with no restrictions are recorded within the Statement of Comprehensive Income and Expenditure when the College is entitled to the income.
## c) **Investment income and change in value of investment assets**
Investment income and change in value of investment assets is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms or other restrictions applied to the individual endowment fund.
## **d) Research Grant income**
Income from research grants, contracts and other services rendered is included to the extent of the completion of the contract or service concerned.
Page: 19
**St Edmund’s College**
**Statement of Principal Accounting Policies**
## **Year Ended 30 June 2022**
## **e) Other income**
Income is received from a range of activities including accommodation, catering conferences and other services rendered.
## **f) Cambridge Bursary Scheme**
In 2019/20, 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 £38,658 is shown within the Statement of Comprehensive Income and Expenditure as follows: Income (see note 1) £269,910 Expenditure £308,568
## **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 forward foreign exchange contract, at contract rates. The resulting exchange differences are dealt with in the determination of the comprehensive income and expenditure for the financial year.
## **Tangible fixed assets**
## **a) Land and Buildings**
Buildings are stated at deemed replacement cost less accumulated depreciation and are depreciated over the remaining useful life.
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 valuation, are capitalised to the extent that they increase the expected future benefits to the College.
Freehold land is not depreciated as it is considered to have an indefinite useful life. Freehold buildings are depreciated on a straight line basis over their expected useful lives as follows:
Leasehold land is depreciated over the remaining life of the lease (91 years at 30.6.14). Additions to buildings are depreciated on a straight line basis over their expected useful lives as follows: Structure 100 years Internal finishes 35 years Mechanical and electrical 35 years
The cost of additions to operational property shown in the balance sheet includes the cost of land. Furniture, fittings and equipment costing less than £500 per individual item or group of related items is written off in the year of acquisition. All other assets are capitalised and depreciated over their expected useful life as follows:
Furniture and fittings 10% per annum Motor vehicles and general equipment 10% per annum Computer equipment 33% per annum.
## _Leased assets_
Leases in which the College assumes substantially all the risks and rewards of ownership of the leased asset 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 accumulated impairment losses. Lease payments are accounted for as described below.
Minimum lease payments are apportioned between the finance charge and the change in 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.
Page: 20
**St Edmund’s College**
**Statement of Principal Accounting Policies**
## **Year Ended 30 June 2022**
## **b) Maintenance of premises**
The cost of major refurbishment and maintenance over £500 which restores value is capitalised and depreciated over the expected useful economic life of the asset concerned.
## **d) Heritage assets**
The College does not hold any assets that should be classed as heritage assets.
## **e) Works of Art**
Works of art are included at fair value. They are not depreciated since their useful life cannot be determined.
## **Investments**
Investments are included in the balance sheet at their fair value.
## **Stocks**
Stocks are valued 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, and it is probable that a transfer of economic benefit will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
## **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 and cash and cash equivalents. 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.
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.
Page: 21
**St Edmund’s College**
## **Statement of Principal Accounting Policies**
## **Year Ended 30 June 2022**
## **Financial Liabilities**
Basic financial liabilities include trade and other payables and bank 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.
Financial liabilities are de-recognised when the liability is discharged, cancelled, or expires.
## **Taxation**
The College is a registered charity (number 1137454) and also a charity within the meaning of Section 467 of the Corporation Act 2010. Accordingly, the College is exempt from taxation in respect of income or capital gains received within the categories covered by Section 478 to 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 to exclusively charitable purposes.
The College receives no similar exemption in respect of Value Added Tax.
## **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. Contribution is used to fund grants to colleges from the Colleges Fund. The College may from time to time be eligible for such grants. 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.
## **Pension Costs**
Employer pension contributions into a defined contribution scheme with Aviva are recognised as an expense in the year salary has been paid.
The College participates in two defined pension scheme the University Superannuation Scheme (USS) and the Cambridge Colleges Federated Pension Scheme (CCFPS). The USS is a multi-employer scheme and given the mutual natures of the scheme, the College is unable to identify individual employers’ shares of assets and liabilities. The College therefore accounts for cost as a defined benefit scheme. However because the scheme is in deficit and a funding plan has been agreed the College recognises a liability for the contributions payable that arise from the agreement to fund the scheme and the resulting expenses in the Statement of Comprehensive Income and Expenditure. The College uses a deficit modeller produced by USS to calculate this amount.
For the CCFPS, the College accounts for the increase in liabilities as an actuarial loss in the Statement of Comprehensive Income and Expenditure. The College uses a valuation provided by Cartwright Ltd, prepared for the CCFPS management committee using assumptions stated in note 25.
## **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.
## **Reserves**
Reserves are allocated between restricted and unrestricted reserves. Endowment reserves include balances which, in respect of endowment to the College, are held as permanent funds, which the College must hold to perpetuity.
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.
Page: 22
**St Edmund’s College**
## **Statement of Principal Accounting Policies**
## **Year Ended 30 June 2022**
## **Critical Accounting Estimates and Judgements**
The preparation of the College’s accounts requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. 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.
Judgement is applied in determining the value and timing of certain income items to be recognised in the accounts. This includes determining when performance related conditions have been met and determining the appropriate recognition timing for donations, bequests and legacies.
Property, plant and equipment represent a significant proportion of the College’s total assets. Therefore the estimated useful lives can have a significant impact on the depreciation charged and the College’s reported performance. Useful lives are determined at the time the asset is acquired and reviewed regularly for appropriateness. The lives are based on historical experiences with similar assets, professional advice and anticipation of future events. Details of the carrying values of property, plant and equipment are shown in note 10.
The finance lease liability and corresponding assets held under the 47-year lease for Mount Pleasant Halls are included in these accounts at the present value of the minimum lease payments. The future lease payments are subject to an inflationary increase. Under UK accounting standards, the RPI increase is deemed to be a conditional rental payment and conditional rental payments do not form part of the minimum lease payments. Therefore, future RPI increases have not been included in the finance lease liability recognised in the financial statements. Management have assumed that inflation will be 1.5% on average throughout the life of the lease.
The provision for doubtful debts is based on the College’s estimate of the expected recoverability of those debts. Assumptions are made based on the level of debtors which have defaulted historically, coupled with current economic knowledge. The provision is based on the current situation of the customer, the age profile of the debt and the nature of the amount due.
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 25.
Management are satisfied that Universities Superannuation Scheme meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the funding plan in existence at the date of approving the accounts.
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 25.
Page: 23
## **St Edmund’s College**
**Statement of Comprehensive Income and Expenditure**
## **Year Ended 30 June 2022**
|**note**
Income
Academic fees and charges
1
Accommodation, Catering and
conferences
2
Other investment income
3
Other Income
4
**Total income before donations and**
**endowments**
Donations
5
Colleges grant fund
New endowments
**Total Income**
Expenditure
Education
6
Accommodation, catering and
conferences
7
Other expenditure
**Total Expenditure**
**8**
**Surplus before other gains and**
**losses**
Gains/(loss) on investments
**Surplus/(deficit) for the year**
Other comprehensive income
Actuarial gain/(loss) in respect of
pension schemes
**Total comprehensive income for**
**the year**|**2021/22**
**Unrestricted**
**Restricted**
**Endowment**
**Total**
**£000**
**£000**
**£000**
**£000**
3,289
3,289
4,178
4,178
276
68
344
26
20
46
**7,769**
**88**
**7,857**
103
180
283
1,203
1,203
**9,075**
**268**
**9,343**
3,127
227
3,354
5,638
5,638
142
11
153
**8,907**
**238**
**9,145**
**168**
**30**
**198**
(94)
(94)
**168**
**30**
**(94)**
**104**
270
270
**438**
**30**
**(94)**
**374**|**2020/21**
**Unrestricted**
**Restricted**
**Endowment**
**Total**
**£000**
**£000**
**£000**
**£000**
2,579
6
2,585
3,652
3,652
241
65
306
66
27
93|
|---|---|---|
|||**6,538**
**98**
**6,636**
101
103
204
1,088
1,088|
|||**7,727**
**201**
**7,928**
2,632
119
2,751
4,924
4,924
112
28
140|
|||**7,668**
**147**
**7,815**
**59**
**54**
**113**
1,390
1,390|
|||**59**
**54**
**1,390**
**1,503**
76
76|
|||**135**
**54**
**1,390**
**1,579**|
Page: 24
**St Edmund’s College**
## **Statement of Changes in Reserves**
## **Year Ended 30 June 2022**
|**Balance at 1 July 2021**
Surplus/(deficit) from income and
expenditure account
Other comprehensive income
Transfers
**Balance at 30 June 2022**
**Balance at 1 July 2020**
Surplus/(deficit) from income and
expenditure account
Other comprehensive income
Transfers
**Balance at 30 June 2021**|**Endowment**
**Restricted**
**Unrestricted**
**£000**
**£000**
**£000**
**19,385**
**762**
**22,360**
(94)
30
168
270
123
(123)|**Total**
**£000**
**42,507**
104
270|
|---|---|---|
||**19,291**
**915**
**22,674**|**42,880**|
||**17,995**
**708**
**22,225**
1,390
54
59
76|**40,928**
1,503
76|
||**19,385**
**762**
**22,360**|**42,507**|
Page: 25
**St Edmund’s College**
## **Balance Sheet**
## **As at 30 June 2022**
|Note
**Non-current assets**
Tangible assets
10
Investments
11
Total non-current assets
**Current assets**
Stocks
12
Debtors
13
Cash
14
Total current assets
**Creditors: amounts falling due within**
**one year**
15
**Net current assets/(liabilities)**
**Total assets less current liabilities**
**excluding pension liability**
**Creditors: amounts falling due in**
**more than one year**
16
**Pension liability**
18
**Total net assets**
**Represented by:**
**Restricted reserves**
Endowment
19
Restricted expendable endowment
20
**Unrestricted reserves**
General reserves
**Total Funds**|**2022**
**£000**
79,863
9,093
88,956
22
374
4,836
5,232
(2,981)
2,251
91,207
(47,882)
(445)
42,880
**2022**
**Total**
**£000**
19,291
915
22,674
42,880|**2021**
**£000**
80,769
9,188|
|---|---|---|
|||89,957
23
324
3,338|
|||3,685
(2,292)|
|||1,393
91,350
(48,234)
(609)|
|||42,507|
|||**2021**
**Total**
**£000**
19,385
762
22,360|
|||42,507|
The financial statements were approved by the Council and Governing Body 21 November 2022 and are signed on their behalf by:
**Mr Graham Watson Bursar**
Page: 26
**St Edmund’s College**
## **Cash Flow Statement**
## **For the Year Ended 30 June 2022**
|Note
**Net cash inflow from operating activities**
21
**Cash flows from investing activities**
22
**Cash flows from financing activities**
23
**Cash inflow before management of liquid resources**
**Cash and cash equivalents at beginning of the year**
**Cash and cash equivalents at end of the year**|**2022**
**£000**
3,875
152
(2,529)
1,498
3,338
4,836|**2021**
**£000**
2,649
53
(2,540)|
|---|---|---|
|||162
3,176
3,338|
The notes on pages 28 to 40 form part of these accounts
Page: 27
**St Edmund’s College**
## **Notes to the Accounts**
## **For the Year Ended 30 June 2022**
|**1.**
**Academic Fees and Charges**
College Fees:
Fee Income paid on behalf of Undergraduates at the Publicly-funded
Undergraduate rate (per capita rate £4,625)
Privately-funded Undergraduate Fee Income (per capita fee £7,000 to £9,300)
Fee income on behalf of G
Postgraduates as an agreed share of University fees (per capita rate £4,475)
Cambridge Bursary
Vice-Chancellors award
Other income
Total
**2.**
**Income from Accommodation, Catering and Conferences**
Accommodation
College members
External Rents
Conferences
Catering
College members
Conferences
Total
**3.**
**Endowment and Investment Income**
**Analysis**
Quoted securities
Fixed interest securities
Other interest receivable
Total
**4.**
**Other Income**
Research grants received
Other
Furlough claims
Total
**5.**
**Donations**
Unrestricted donations
Restricted donations
Total|**2022**
**£000**
574
658
1,736
2,968
270
51
3,289
**2022**
**£000**
2,829
939
22
370
18
4,178
**2022**
**£000**
316
28
344
**2022**
**£000**
20
25
1
46
**2022**
**£000**
103
180
283|**2021**
**£000**
372
465
1,457|
|---|---|---|
|||2,294
191
52
48|
|||2,585|
|||**2021**
**£000**
1,601
1,865
186|
|||3,652|
|||**2021**
**£000**
303
3|
|||306|
|||**2021**
**£000**
41
52|
|||93|
|||**2021**
**£000**
101
103|
|||204|
Page: 28
**St Edmund’s College**
## **Notes to the Accounts**
## **For the Year Ended 30 June 2022**
|**6.**
**Education Expenditure**
Teaching
Tutorial
Admissions
Research
Scholarships and awards
Other educational facilities
Total|**2022**
**£000**
895
660
234
206
666
693
3,354|**2021**
**£000**
766
579
242
167
480
517
2,751|
|---|---|---|
Included within Scholarships and Awards are payments under the Cambridge Bursary Scheme amounting to £269,910 (2021: £226,412).
|**7.**
**Accommodation, Catering and Conferences Expenditure**
Accommodation
College members
Conferences
Catering
College members
Conferences
Total|**2022**
**£000**
4,605
3
923
107
5,638|**2021**
**£000**
4,294
3
572
55
4,924|
|---|---|---|
## **8a. Analysis of 2021/22 Expenditure by Activity**
|**Analysis of 2021/22 Expenditure by Activity**|||||
|---|---|---|---|---|
|Education
Accommodation, catering and conferences
Other
Total|**Staff costs**
**(note 9)**
**£000**
1,321
948
64
2,333|**Other**
**operating**
**expenses**
**£000**
1,769
3,863
81
5,713|**Dep’n**
**£000**
264
827
8
1,099|**Total**
**£000**
3,354
5,638
153|
|||||9,145|
Expenditure includes fundraising costs of £99,412 (2021: £92,996). This expenditure does not include the costs of alumni relations.)
## **8b. Analysis of 2020/21 Expenditure by Activity**
|**Analysis of 2020/21 Expenditure by Activity**|||||
|---|---|---|---|---|
|Education
Accommodation, catering and conferences
Other
Total|**Staff costs**
**(note 9)**
**£000**
1,217
855
78
2,150|**Other**
**operating**
**expenses**
**£000**
1,348
3,221
60
4,629|**Dep’n**
**£000**
186
848
2
1,036|**Total**
**£000**
2,751
4,924
140|
|||||7,815|
## **8c. Auditors' remuneration**
||||
|---|---|---|
|**Auditors' remuneration**|**2022**|**2021**|
||**£000**|**£000**|
|Other operating expense include:|||
|Audit fees payable to the College's external auditors|25|21|
|Other fees payable to the College's external auditors|||
Page: 29
**St Edmund’s College**
## **Notes to the Accounts**
## **For the Year Ended 30 June 2022**
|**9.**
**Staff**
**Staff costs:**
Emoluments
Social security costs
Other pension costs (note
25)
**Average staff numbers**
Academic
Non-academic|**College**
**Fellows**
**£000**
550
48
47
645|**Other**
**Academic**
**£000**
198
10
14
222
**Number of**
**Fellows**
61
4
65|**Non**
**Academic**
**£000**
1,136
112
218
1,466
**Full-time**
**equivalents**
**2022**
14
53
67|**Total**
**2022**
**£000**
1,883
170
280
2,333
**Number**
**of**
**Fellows**
65
4
69||**Total**
**2021**
**£000**
1,910
142
98
2,150
**2021**
**No.**
17
43|
|---|---|---|---|---|---|---|
||||||||
||||||||
|||||||60|
The Council comprises the Master and 12 Fellows, of whom 9 are stipendiary. The trustees receive no emoluments in their role as trustees of the Charity.
The number of officers and employees of the College who received remuneration in the following range £100,001 - £110,000: 0 (2021:0)
## **Key management personnel**
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College. A subset of Council members fulfil these functions for The College. Aggregated emoluments paid to key management personnel:
|**Key management personnel**
**10.**
**Tangible Assets**
**Land &**
**Group and College**
**Buildings**
£000
**Cost**
At beginning of year
42,781
Additions at cost
172
Disposals
________
At end of year
42,953
**Depreciation**
At beginning of year
4,418
Charge for the year
656
Eliminated on
disposal
________
At end of year
5,074
**Net book value**
At end of year
37,879
At beginning of year
38,362|**MPH**
**Land &**
**Buildings**
**£000**
42,762
42,762
575
386
961
41,801
42,187|**2022**
**2021**
**£000**
**£000**
253
323
**Works**
**of Art**
**Equipment**
**£000**
**£000**
33
1,284
21
33
1,305
1,098
57
1,155
33
150
33
186|
**2022**
**Total**
**£000**
86,861
192
87,053
6,092
1,099
7,190
79,863
80,769|**2021**
**Total**
**£000**
86,576
285|
|---|---|---|---|---|
|||||86,861
5,057
1,036|
|||||6,092
80,769|
|||||81,519|
Page: 30
**St Edmund’s College**
## **Notes to the Accounts**
## **For the Year Ended 30 June 2022**
The insured value of Freehold Land and Buildings as at 30 June 2022 was £41,670,825 (2021: £41,670,825). The net book value of fixed assets includes an amount of £42,187,000 (2021: £42,187,000) in respect of assets held under finance leases. The depreciation charge on these assets for the year was £320,340 (2021: £320,340).
|**11.**
**Fixed Asset Investments**
Balance at beginning of year
Additions
Disposal
Net gains/(losses)
Increase in cash balances held at fund managers
Balance at end of year
Represented by:
Quoted Securities
**12.**
**Stocks**
Other stocks
**13.**
**Debtors**
Members of the College
Other debtors
Prepayments and accrued income
**14.**
**Cash**
Bank deposits
Current accounts
**15.**
**Creditors: Amounts Failing Due within**
**one year**
Bank Loan
Trade Creditors
Members of the College
Other creditors
Accruals & deferred income||**2022**
**£000**
9,188
(95)
9,093
9,093
9,093
**2022**
**£000**
22
**2022**
**£000**
219
155
374
**2022**
**£000**
4,836
4,836
**2022**
**£000**
529
393
732
776
551
2,981|**2021**
**£000**
7,831
(33)
1,390|
|---|---|---|---|
||||9,188|
||||9,188|
||||9,188|
||||**2021**
**£000**
23|
||||**2021**
**£000**
193
131|
||||324|
||||**2021**
**£000**
3,338|
||||3,338|
||||**2021**
**£000**
529
127
530
446
660|
||||2,292|
Page: 31
**St Edmund’s College**
## **Notes to the Accounts**
## **Year Ended 30 June 2022**
|**16.**
**Creditors: Amounts Falling Due after**
**more than one year**
Bank loans
Lease liability MPH
Lease Premium|**2022**
**£000**
3,846
42,959
1,077
47,882|**2021**
**£000**
4,375
42,758
1,101|
|---|---|---|
|||48,234|
The bank loan is being repaid in quarterly instalments; the final repayment is due in 2031. The loan is secured over Benet House and other College property. Interest is payable at an average of 6.01%.
The lease liability is for Mount Pleasant Hall, being a 47 year lease calculated using an incremental borrower’s rate of 4.5%. The initial lease liability has been calculated using the present value of future minimum lease payments assuming an annual RPI increase of 1.5%. The lease is subject to an annual review of RPI and lease payments will increase by changes to RPI. The RPI element of the lease charge is a conditional rental payment and therefore does not form part of the minimum lease payments. Increases in the RPI element in excess of 1.5% are therefore not included in the lease liability recognised on the balance sheet.
The lease liability has been calculated on a base lease charge of £1,673,300 per annum assuming an RPI increase of 1.5%. On this basis, the assumed lease charge for financial year 2021/22 is £1,926,398. The actual lease charge for the year is £1,951,761. The additional charge not recognised on the balance sheet of £25,363 will be incurred for the remainder of the lease and will be subject to future RPI increase. The value of this in real terms is £1,079,528.
## **17. Financial Instruments**
|**Financial assets**
Financial assets that are equity instruments measured at cost less
impairment
Other equity investments:
**Financial liabilities**
Financial liabilities measured at amortised cost
Finance Lease
**18.**
**Pension Liability**
**Group and College**
CCFPS
Balance at beginning of year
Movement in year:
Current service cost
Contributions
Finance Cost
Actuarial loss/(gain)
Balance at end of year
USS
Balance at beginning of year
Movement in year:
Contributions
Change in the expected contribution
Finance Cost
Balance at end of year
Pension liabilities at beginning of year
Pension liabilities at end of year|**2022**
**£000**
9,093
42,959
**2022**
**£000**
450
13
(18)
8
(270)
183
159
(5)
107
1
262
609
445|**2021**
**£000**
9,188
42,758
**2021**
**£000**
519
21
(22)
8
(76)|
|---|---|---|
|||450|
|||251
(9)
(85)
2|
|||159|
||||
|||770|
||||
|||609|
Page: 32
**St Edmund’s College**
## **Notes to the Accounts**
## **Year Ended 30 June 2022**
|**19.**
**Endowments**
**College**
**Unrestricted**
**Permanent**
**£000**
**Balance at beginning of year:**
17,371
New endowments received
Net transfers
Increase in market value of investments
(74)
**Balance at end of year**
17,297
**Representing**
Fellowship Funds
Scholarship Funds
Prize Funds
Hardship Funds
Bursary Funds
Other Funds
General endowments
Group Total
**20.**
**Restricted Reserves**
**Permanent**
Reserves with restrictions
**unspent**
**and other**
**restricted**
**income**
**£000**
Balance at beginning of year
Capital
Accumulated income
401
New grants VHI
New grants other
New donations VHI
New donations other
Investment income VHI
7
Investment income other
60
Other income
27
94
Expenditure VHI
Expenditure other
(45)
(45)
Transfers
(1)
Balance at end of year
Capital
-
Accumulated income
449|**19.**
**Endowments**
**College**
**Unrestricted**
**Permanent**
**£000**
**Balance at beginning of year:**
17,371
New endowments received
Net transfers
Increase in market value of investments
(74)
**Balance at end of year**
17,297
**Representing**
Fellowship Funds
Scholarship Funds
Prize Funds
Hardship Funds
Bursary Funds
Other Funds
General endowments
Group Total
**20.**
**Restricted Reserves**
**Permanent**
Reserves with restrictions
**unspent**
**and other**
**restricted**
**income**
**£000**
Balance at beginning of year
Capital
Accumulated income
401
New grants VHI
New grants other
New donations VHI
New donations other
Investment income VHI
7
Investment income other
60
Other income
27
94
Expenditure VHI
Expenditure other
(45)
(45)
Transfers
(1)
Balance at end of year
Capital
-
Accumulated income
449|**19.**
**Endowments**
**College**
**Unrestricted**
**Permanent**
**£000**
**Balance at beginning of year:**
17,371
New endowments received
Net transfers
Increase in market value of investments
(74)
**Balance at end of year**
17,297
**Representing**
Fellowship Funds
Scholarship Funds
Prize Funds
Hardship Funds
Bursary Funds
Other Funds
General endowments
Group Total
**20.**
**Restricted Reserves**
**Permanent**
Reserves with restrictions
**unspent**
**and other**
**restricted**
**income**
**£000**
Balance at beginning of year
Capital
Accumulated income
401
New grants VHI
New grants other
New donations VHI
New donations other
Investment income VHI
7
Investment income other
60
Other income
27
94
Expenditure VHI
Expenditure other
(45)
(45)
Transfers
(1)
Balance at end of year
Capital
-
Accumulated income
449|**19.**
**Endowments**
**College**
**Unrestricted**
**Permanent**
**£000**
**Balance at beginning of year:**
17,371
New endowments received
Net transfers
Increase in market value of investments
(74)
**Balance at end of year**
17,297
**Representing**
Fellowship Funds
Scholarship Funds
Prize Funds
Hardship Funds
Bursary Funds
Other Funds
General endowments
Group Total
**20.**
**Restricted Reserves**
**Permanent**
Reserves with restrictions
**unspent**
**and other**
**restricted**
**income**
**£000**
Balance at beginning of year
Capital
Accumulated income
401
New grants VHI
New grants other
New donations VHI
New donations other
Investment income VHI
7
Investment income other
60
Other income
27
94
Expenditure VHI
Expenditure other
(45)
(45)
Transfers
(1)
Balance at end of year
Capital
-
Accumulated income
449|**Restricted**
**Permanent**
**£000**
2,014
(20)
1,994
**Restricted**
**expendable**
**endowment**
**£000**
361
13
19
3
141
1
177
(62)
(133)
(195)
122
465||**2022**
**Total**
**£000**
19,385
(94)
19,291
1,242
123
39
263
42
289
17,293
19,291
**2022**
**Total**
**£000**
361
401
13
19
3
141
7
61
27|**2021**
**Total**
**£000**
17,995|
|---|---|---|---|---|---|---|---|
||||||||1,390|
||||||||19,385|
||||||||1,248
124
40
264
42
291
17,376|
||||||||19,385|
||||||||**2021**
**Total**
**£000**
371
337
27
2
99
7
58
7|
||||94
(45)|||271
(62)
(178)|
200
(25)
(121)|
||||(45)
(1)|||(240)
122
-|
(147)
-|
||||-
449|||465
450|
361
401|
Page: 33
**St Edmund’s College**
## **Notes to the Accounts**
## **Year Ended 30 June 2022**
|**Representing**
Fellowship Funds
Scholarship Funds
Prize Funds
Hardship Funds
Bursary Funds
Other Funds
Group Total
**21.**
**Reconciliation of operating surplus to net cash inflow from operating**
**activities**
Surplus/(deficit) on continuing operation
**Adjustment for non-cash items**
Depreciation of tangible fixed assets
Investment Asset (appreciation)/loss
Decrease/(increase) in Stocks
Decrease/(increase) in Debtors
Increase/(decrease) in Creditors
Pension costs less contributions payable
**Adjustment for investing or financing activities**
Investment Income
Interest payable
**Net cash inflow from operating activities**
**22.**
**Cash flows from investing activities**
**Returns on investments and servicing of finance**
Investment income
Payments made to acquire non-current assets
**23.**
**Capital expenditure and financial investment**
Interest Paid
Interest element of finance lease rental payments
Repayment of amounts borrowed
Capital element of finance lease rental payments
**Total cash flows from financing activities**||276
59
17
120
1
442
915
**2022**
**£000**
373
1,099
95
2
(51)
663
(165)
(344)
2,203
3,875
**2022**
**£000**
344
(192)
152
**2022**
**£000**
(276)
(1,926)
(529)
202
**(2,529)**||251
53
15
112
331
762
**2021**
**£000**
1,579
1,036
(1,390)
10
158
(504)
(161)
(306)
2,228|
|---|---|---|---|---|
||||||
||||||
|||||2,649|
|||||**2021**
**£000**
306
(253)|
|||||53|
|||||**2021**
**£000**
(312)
(1,916)
(529)
217|
|||||**(2,540)**|
Page: 34
**St Edmund’s College**
## **Notes to the Accounts**
## **Year Ended 30 June 2022**
## **24. Reconciliation and analysis of net debt**
|Cash and cash equivalents
Borrowings:
Amounts falling due within one
year
Secured loans
Obligations under finance leases
Borrowings:
Amounts falling due after more
than one year
Secured loans
Obligations under finance lease
**Total**|At 1 July
2021
Cash flows
Other non-
cash
changes
At 30 June
2022
£000
£000
£000
£000
3,338
1,498
4,836
(529)
528
(528)
(529)|
|---|---|
||2,809
2,026
(528)
4,307
(4,375)
529
(3,846)
(42,758)
2,127
(1,926)
(42,557)|
||(47,133)
2,127
(1,397)
(46,403)|
||**(44,324)**
**4,153**
**(1,925)**
**(42,096)**|
## **25. Pension Schemes**
The College’s employees belong to two principal pension schemes, the Universities Superannuation Scheme (USS) and the Cambridge Colleges Federation Pension Scheme (CCFPS). The total pension cost for the period was £279,658 (2021: £97,558).
## **University Superannuation Scheme**
The College participates in the Universities Superannuation Scheme (the scheme). The scheme is a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the scheme’s assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The 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 income and expenditure account represents the contributions payable to the scheme in respect of the accounting period. Since the College has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit), the College recognises a liability for the contributions payable that arise from the agreement to the extent that they relate to the deficit and therefore an expenses is recognised.
## Critical accounting judgements
FRS102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as that provided by USS. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense is recognised in the income and expenditure account in accordance with section 28 FRS102. The Trustees are satisfied that the scheme provided by USS meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the funding plan in existence at the date of approving the financial statements.
Page: 35
**St Edmund’s College**
**Notes to the Accounts**
## **Year Ended 30 June 2022**
## **25. Pension Schemes cont’d**
## **Pension Costs**
At the financial year end the latest available complete actuarial valuation of the Retirement Income Builder section of the Scheme was at 31 March 2020 (the valuation date).
Since the College cannot identify its share of scheme assets and liabilities, the following disclosures reflect those relevant for the scheme as a whole.
The 2020 valuation was the sixth valuation for USS under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £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 fund ratio of 83%.
The key financial assumptions used in the 2020 valuation are described below. More details are set out in the Statement of Funding Principles.
Pension increases (CPI) Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves, less 1.1% pa to 2030, reducing linearly by 0.1% pa to a long-term difference of 0.1% pa from 2040.
Discount rate(forward rates) Fixed interest gilt yield curve plus: Pre-retirement, 2.75% pa and post-retirement 1.00% pa.
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**
||**2020 valuation**|
|---|---|
|Mortality base table|101% of S2PMA ‘light’ for males and 95% of S3PFA for females|
|Future improvements to|CMI_2019 with a smoothing parameter of 7.5, an initial addition of 0.5%|
|mortality|pa and a long term improvement rate of 1.8%.pa for males and 1.6% for|
||females.|
The current life expectancies on retirement at age 65 are:
||**2022**|**2021**|
|---|---|---|
|Males currently aged 65 (years)|23.9|24.7|
|Females currently aged 65 (years)|25.5|26.1|
|Males currently aged 45 (years)|25.9|26.7|
|Females currently aged 45 (years)|27.3|27.9|
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 to 31 March 2024 at which point the rate will increase to 6.3%. The 2022 deficit recovery liability reflects this plan. The liability figures have been produced using the following assumptions:
||**2022**|**2021**|
|---|---|---|
|Discount rate|3.31%|0.87%|
|Pensionable salary growth|0%|0%|
Page: 36
**St Edmund’s College**
## **Notes to the Accounts**
## **Year Ended 30 June 2022**
## **25. Pension Schemes cont’d**
## **Cambridge Colleges Federated Pension Scheme**
The College operates a defined benefit pension plan for the College’s employees of the Cambridge Colleges’ Federated Pension Scheme (CCPFS).
The liabilities of the plan have been calculated for the purposes of FRS102 using a valuation system designed for the Management Committee acting as Trustee of the CCPFS, at 30 June 2022 but allowing for the different assumptions required under FRS102 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 (expressed as weighted averages) were as follows:
||**June 2022**|**June 2021**|
|---|---|---|
||**% p.a.**|**% p.a.**|
|Discount rate|3.80|1.80|
|Increase in salaries|3.25|3.10|
|RPI assumption|3.45|3.40|
|CPI assumption|2.75|2.60|
|Pension increased in payment (RPI Max 5% p.a.)|3.30|3.30|
|Pension increases in payment (CPI Max 2.5% p.a.)|2.05|1.95|
The underlying mortality assumption is based upon the standard table known as S3PA of a year of birth usage with CMI_2021 future improvements 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 (2021: S3PA with CMU_2020 with future improvement factors and a long-term future improvement rate 1.25% p.a.), a standard smoothing factor (7.0) and no allowance for additional improvements. This results in the following life expectancies:
- Male age 65 now has a life expectancy of 21.9 years (previously 21.9 years)
- Female age 65 now has a life expectancy of 24.3 years (previously 24.3 years)
- Male age 45 now and retiring in 20 years would have a life expectancy the of 23.2 years (previously 23.2 years)
- Female age 45 now and retiring in 20 years would have a life expectancy the of 25.7 years (previously 25.7 years)
## **Employee Benefit Obligations**
The amounts recognised in the balance sheet as at 30 June 2022 (with comparative figures as at 30 June 2021) are as follows:
|Present value of Scheme liabilities
Market value of Scheme assets
**Deficit in the Scheme**|**2022**
**2021**
£000
£000
(952)
(1,350)
769
900|
|---|---|
||**(183)**
**(450)**|
The amounts to be recognised in the profit and loss for the year to 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:
|Current service cost
Interest on Scheme liabilities
Past service cost
Curtailment gain
**Total**|**2022**
**2021**
14
21
8
8
-
-
-
-|
|---|---|
||**22**
**29**|
Page: 37
**St Edmund’s College**
## **Notes to the Accounts**
## **Year Ended 30 June 2022**
## **25. Pension Schemes cont’d**
Changes in the present value of the plan liabilities for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:
|Present value of plan liabilities at beginning of period
Current service cost including Employee contributions
Benefits paid
Interest on plan liabilities
Actuarial losses/(gains)
(Gain)/loss on plan changes
Curtailment (gain)/loss
Present value of Scheme liabilities at end of period|**2022**
**2021**
1,350
1,360
9
19
(21)
(22)
24
20
(410)
(27)
0
0
0
0|
|---|---|
||**952**
**1,350**|
Changes in the fair value of the plan assets for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:
|Market value of Scheme assets at beginning of period
Contributions paid by the College
Employee contributions
Benefits paid
Interest on plan assets
Return on assets, less interest included in Profit & Loss
**Market value of Scheme assets at end of period**
**Actual return on plan assets**|**2022**
**2021**
900
841
18
23
1
3
(27)
(29)
16
12
(139)
50|
|---|---|
||**769**
**900**|
|||
||**(123)**
**62**|
The major categories of plan assets as a percentage of total plan assets for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:
|Equities
Bonds & Cash
Property
**Market value of Scheme assets at end of period**|**2022**
**2021**
52%
48%
34%
42%
14%
10%|
|---|---|
||**100%**
**100%**|
The plan has no investments in property occupied by, assets used by or financial instruments issued by the College.
Analysis of the re-measurement of the net defined benefit liability recognised in Other Comprehensive Income (OCI) for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:
|Actual return less expected return on plan assets
Experience gains and losses arising on Scheme liabilities
Changes in assumptions underlying the present value of plan
liabilities
**Actuarial (loss)/gain recognized in OCI**|**2022**
**2021**
**£000**
**£000**
(139)
50
(50)
8
459
18|
|---|---|
||**270**
**76**|
Movement in surplus/(deficit) during the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:
|Surplus/(deficit) in plan at beginning of year
Recognised in Profit and Loss
Contributions paid by the College
Actuarial gain/(loss) recognised in OCI
**Deficit in plan at the end of the year**|**2022**
**2021**
**£000**
**£000**
(450)
(519)
(21)
(29)
18
22
270
76|
|---|---|
||**(183)**
**(450)**|
Page: 38
**St Edmund’s College**
## **Notes to the Accounts**
## **Year Ended 30 June 2022**
## **25. Pension Schemes cont’d**
Funding Policy
Funding 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 FRS102.
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 that £12,297p.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.
## **26. Related Party Transactions**
Owing to the nature of the College’s operations and the composition of its Council it is inevitable that transactions will take place with organisations in which a member of the Council may have an interest. All transactions involving organisations in which a member of the 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 Council has a material interest in a College matter they are required to declare that fact.
During the year no fees or expenses were paid to Fellows in respect of their duties as Trustees.
Fellows are remunerated for teaching, research and other duties within the College. Fellows are billed for any private catering. The Trustees remuneration is overseen by the Remuneration Committee.
The salaries paid to Trustees in the year are summarised in the table below:
|From|To|2022|2021|
|---|---|---|---|
|||number|number|
|£0|£10,000|8|8|
|£10,001|£20,000||1|
|£20,001|£30,000||1|
|£30,001|£40,000|1||
|£40,001|£50,000|1||
|£50,001|£60,000||2|
|£60,001|£70,000|1||
|£70,001|£80,000||2|
|£80,001|£90,000|1||
The total Council salaries were £242,247 for the year (2021: £306,065). The trustees were also paid other taxable benefits (including associated employer National Insurance contributions and employer contributions to pension) which totalled £58,319 (2021: £61,985).
## **27. Future Capital Commitment**
No capital commitments existed at the year end.
Page: 39
**St Edmund’s College**
## **Notes to the Accounts**
## **Year Ended 30 June 2022**
## **28. Contingent liability**
A contingent liability exists in relation to the pension valuation recovery plan, since The College is an employer of members within the scheme. The contingent liability relates to the amount generated by past service of current members and the associated proportion of the deficit. Given that the scheme is a multi-employer scheme and the College is unable to identify its share of the underlying assets and liabilities, the contingent liability is not recognised as a provision on the balance sheet. The associated receivable from the scheme in respect of the reimbursement of the company’s expenditure is similarly not recognised.
## **29. Subsidiary**
The College owns the whole of the ordinary share capital of ED Developments Limited, a company which is registered in England and Wales. Its principal historic activity was that of general construction. The College has taken advantage of the exemption within section 33 of FRS 102 not to disclose transactions with wholly owned group companies that are related parties. The College has one other dormant subsidiary undertaking, St Edmund’s College Cambridge, which is 100% owned by the College and is registered in England and Wales.
Page: 40