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2021-06-30-accounts

TRINITY HALL CAMBRIDGE AccouNfs FOR THE YEAR ENDED 30 June 2021

TRINITY HALL Index to the accounts For the Year Ended 30 June 2021

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33-46		 Contents
Governing Body and Advisers
Operating and Financial Review
Corporate Governance and Public Benefit Statement
Responsibilities of the Governing Body and Statement of Internal Control
Report of the Auditors
Statement of Principal Accounting Policies
Consolidated Statement of Comprehensive Income and Expenditure
Consolidated Statement of Changes in Reserves
Consolidated Balance Sheet
College Balance Sheet
Consolidated Cash Flow Statement
Notes to the Accounts

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TRINITY HALL Governing Body and Advisers For the Year Ended 30 June 2021

Governing Body

Master: The Revd Canon Dr Jeremy Morris Bursar: Mr Tim Harvey-Samuel Senior Tutor: Dr Clare Jackson

Registered charity number

1137458

Dr Daniel Tyler Professor Simon Guest Professor Mike Hobson Professor John Clarkson Professor James Montgomery Professor Florian Hollfelder Professor Brian Cheffins Professor Simon Moore Professor Vasant Kumar Dr Nick Bampos Professor John Bradley Professor Jan Schramm Dr Louise Haywood Professor Graham Pullan Professor Ian B Wilkinson Dr Cristiano Ristuccia Dr Jerome Jarrett Professor Edmund R S Kunji Dr William O’Reilly

Dr Isabelle McNeill Mr Glen Sharp Dr Jane Partner Dr Lorand Bartels Dr Andrew Murray Mr Andrew Arthur Dr Robert Asher Dr Alexandra Turchyn Revd Dr Stephen Plant Dr Alexander Marr Dr Stephen Watterson Professor Ramji Venkataramanan Dr Tamsin O’Connell Dr David Erdos Dr Pedro Ramos Pinto Dr Adam Branch Dr Heather Inwood Dr Andrew Sanchez Dr Koen Jochmans

Dr Ron Reid-Edwards Dr Nicola Kozicharow Dr Gonçalo Bernardes Dr Hatice Gunes Dr Rona Smith Dr Rachel Clement Tolley Dr Heidi Howard Dr Max Leventhal Mr Franco Basso Dr Leila Mukhida Mr Jai Chitnavis Dr Adam Lebovitz Ms Ingrid Schroder Dr Marcus Tomalin Mr Lee De-Wit Dr Simon Corkery Dr Anton Enright Dr Emma Kast Dr Anya Burgon

Auditors

Peters Elworthy & Moore Salisbury House Station Road Cambridge CB1 2LA

Bankers

Lloyds Bank plc 3 Sidney Street Cambridge CB2 3HQ

Solicitors

Birketts LLP 22 Station Road Cambridge CB1 2JD

Mills & Reeve LLP

Botanic House 98-100 Hills Road Cambridge CB2 1PH

Farrer & Co LLP

66 Lincoln’s Inn Fields London WC2A 3LH

Principal Property Agents Savills

Unex House 132-134 Hills Road Cambridge CB2 8PA

Bidwells

Bidwell House Trumpington Street Cambridge CB2 9LD

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TRINITY HALL Operating and Financial Review For the Year Ended 30 June 2021

Status

Trinity Hall, or The Master, Fellows and Scholars of the College or Hall of the Holy Trinity in the University of Cambridge, was founded by Bishop Bateman of Norwich in 1350. The College is an autonomous, self-governing community of scholars, and one of 31 Colleges within the University of Cambridge. The College is a registered charity and its registered charity number is 1137458.

Aims and objectives

The College is an institution of higher education. Its purposes are the advancement of education, religion, learning and research. The College admits (as junior members) undergraduate and postgraduate students matriculated in the University of Cambridge. It provides financial and other support to those of its members who require it in order to achieve its purposes and it supports teaching and research in the University. In furtherance of its objectives, the College maintains and manages an endowment of assets, including properties. Besides financial and tutorial support, it provides accommodation, catering and other services to its members and others. Governance arrangements for the College are set out on page 12.

Overview of the Year

The year under review has been even more challenging than the year which preceded it. The impact of COVID–19 and its attendant repeated lockdowns and necessary restrictions has been far more pronounced on College finances in 2020-21 even than it was in 2019–20. The restrictions and demands of the pandemic have also placed an enormous burden on all members of our community as the College has adapted rapidly to fulfil our core educational mission under conditions of great duress and rapid evolution. While Michaelmas and Easter terms saw almost full residence in College and a blend of face-to-face and remote teaching, the prolonged lockdown which began in January 2021 meant that Lent term saw a very significant fall in residential numbers and consequent material rental loss. Our conference and events business produced no significant revenue throughout the year. This was especially frustrating because the business has made huge progress in recent years and established itself as amongst the leading venues in a competitive Cambridge marketplace. We are seeing tentative signs of recovery in this area and the team were quick to gain accreditation for providing COVID-secure facilities but nonetheless we anticipate a gradual recovery over the next two years. The commissioning of the independent inquiry by Gemma White QC together with associated advice relating to implementation of the inquiry’s findings, also caused a rise in professional fees. The College is determined to complete its work on this matter fully and fairly, to act upon all recommendations in the Inquiry Report and to publish a “Report for Publication” when it has completed its processes. Further information is available through announcements on the College website. The College’s endowment weathered the year extremely well (generating particularly strong gains in the equities portfolio which returned 28.27%), and stood at a record £335.2m at 30 June 2021.

The financial results for the year therefore reflect this pattern. The income statement suffers from loss of revenue and growth of expense. However the balance sheet is unprecedentedly strong. As a perpetual institution the strength of our balance sheet is the clearest barometer of our long-term resilience. Our strategic investments are beginning to show some significant uplift which are likely to be reported on in more detail next year. At the Unrestricted “operating” level the net deficit is £3.33m (2020 - £0.39m) and the total deficit (including restricted and endowment activity in the income and expenditure account) is £4.01m (£1.34m). Looking at the balance sheet, investments are up 15.6% to £335.2m from £289.9m, cash holdings are broadly stable and overall there is a 14.4% growth in net assets to £357.9m (£313.0m). As with last year I am covering the impact and actions taken in relation to COVID-19 in a special section below given their broad impact across both finances and operations.

Covid–19 pandemic response

The College functioned to almost full residential capacity during Michaelmas term 2020, students were grouped in households and the College participated in the University-wide weekly PCR testing

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TRINITY HALL Operating and Financial Review For the Year Ended 30 June 2021

regime which was crucial in identifying cases accurately and promptly. Thus, while catering restrictions meant we operated a takeaway cafeteria only, there was considerable collegiate life on site. Unfortunately Government guidelines meant that the College again had to close much of its nonacademic provision in Lent term 2021, although the College continued to maintain residential accommodation for those students who could not return home or had no good alternative place to study. Easter term 2021 functioned much as Michaelmas 2020 although a resurgence of COVID-19 at the end of term impeded the full realisation of some of the events planned to celebrate graduation. Once again the College benefited from very significant intercollegiate and University co-operation in managing the closing down and opening up of services on a COVID-secure basis (the latter being far more complex). During the entire period under review regulations changed frequently, each time requiring COVID planning to be revised. Use was made of the Coronavirus Job Retention Scheme and those staff not on furlough continued to work from home or in College.

The principal effects and challenges deriving from the pandemic up to year end were as follows:

Subsequent to June 30 the challenges have mainly related to planning for the academic year just commenced, principally:

It is a testament to the ingenuity, dedication and resilience of the College’s operational management and staff that the College reopened so successfully in October 2021.

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TRINITY HALL Operating and Financial Review For the Year Ended 30 June 2021

Achievements and Performance

The College reviews its achievements and performance in pursuit of its charitable purposes in the following respects:

Students

During the year, the College educated 417 (391) undergraduate students and 251 (247) postgraduate students. This includes all students up to the time they receive their degree, regardless of the time spent at the College or whether they are still paying fees.

The College charges the following fees:

Admissions

The College admits as students those who have the highest potential for benefitting from the education provided by the College and the University and recruits as academic staff those who are able to contribute most to the academic excellence of the College, regardless of their financial, social, religious or ethnic background.

In the 2021 admissions round a total of 120 Undergraduate offers were made to students ( cf. 150 in 2020). The total number of offers was deliberately lower than last year in anticipation of a higher offer conversation rate due to the change in A Level assessments with the majority of grades being awarded on the basis of teacher assessments. The table below summarises the offers made by subject type and gender, along with figures for the number of candidates who were ultimately confirmed in August 2021 for direct or deferred entry:

Arts Sciences Total Male Female Total
Offers 62(77) 58 (69) 120 (146) 63 (70) 57(76) 120 (146)
Intake 59 (72) 46 (56) 105 (128) 53 (63) 52(65) 105 (128)

Including applicants who were UK resident and at UK schools, 68% of offers were made to applicants from Maintained Schools (cf. 73% in 2020). This includes offers for deferred entry; in addition, four offers were made to applicants on bursaries at independent schools. The percentage of UK resident offer holders from Maintained Schools for entry in 2021, including deferrals from last year’s admissions round, is 70%. Overall 80% ( cf. 80%) of offers were to students categorised as Home students for fee purposes, 3% ( cf. 5 %) to EU students and 17% ( cf. 15%) to Oversees students.

The University and Colleges have set the following admissions targets collectively in their latest Access and Participation Plan 2021-21 to 2024-25:

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TRINITY HALL Operating and Financial Review For the Year Ended 30 June 2021

To admit UK resident students from:

The proportion of offers made by the College to UK resident students from POLAR4 Q1 was 5.1% ( cf. 3.3%) and 16.3% ( cf. 6.7%) from POLAR4 Q2.

The proportion of offers made by the College to UK resident students from quintiles 1 and 2 of regional IMD was 21.4% ( cf. 19.2%).

Broadening Access

To raise educational aspiration and attract outstanding applicants who might not otherwise have considered applying to Trinity Hall, the College continues to develop its activities and initiatives in a wide-ranging outreach programme overseen by the College’s Director of Admissions. A new Widening Participation Plan has been put in place; this includes provision to ensure potential applicants are supported from Year 8 and continuing through the application process, and to favour sustained or/and multi school provision over ad hoc events for individual schools. Due to the continued effects of Covid-19, outreach efforts have been facilitated through online formats where possible via the College website and through social media. This has enabled more events to be hosted than ever and for the Admissions team to reach a greater number of students and schools than are usually accessible through in-person provision alone. Events included webinars for Year 10 Consider University Days, a South West Collaboration event for students and schools from the South West of England, Subject Open Days and Year 8 and 9 Taster Days.

Student Support

In order to assist undergraduates entitled to Student Support, the College provides assistance to those of limited financial means through the Cambridge Bursary Scheme, a scheme operated in common with the University. (For the academic year 2020-21, the number of awards made was 77 (74), out of a Home/EU undergraduate population of 331 (311), equal to 23% (24%); 55 (47) of the awards were at the maximum value of £3,500; and the average value of the awards was £3,074 (£2,751)). The Scheme is widely advertised on the University website, on college websites and in the Admissions Prospectus. In addition to the Cambridge Bursary Scheme the College also participated in a top-up bursary scheme. The scheme aims to increase levels of support available to first and second year UK (home) and EU undergraduate students from low and middle income families (last year the scheme was only available to first year home/EU undergraduate students). A total of 62 (26) awards were made out of a first and second-year home/EU undergraduate population of 211 (101) equal to 29% (26%) of the population and the average value of the awards was £584 (£823). In addition, the College provides further assistance to students through hardship grants and travel and long vacation residence awards.

To support the costs of postgraduate students, the College provides substantial financial assistance. This includes scholarships to fund fees and living costs and ‘top-up’ funding to fill funding shortfalls in students’ funding packages. For the academic year 2020-21, £556,000 (£432,000) was spent on specific studentships for postgraduate students representing 94% (76%) of postgraduate fee income (£590,000 cf. £569,000 in 2019-20).

In addition to these specific awards the College supports its entire student body, both undergraduate and postgraduate, by subsidising their teaching and living arrangements with operational support from its endowment. This is taken annually from the total return of investment assets. For the accounting year 2020-21 the deficit on the Education Account was £4.4 million (£4 million); thus support for each student of all classes averaged just over £7,400 (£7,000).

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TRINITY HALL Operating and Financial Review For the Year Ended 30 June 2021

The College also supports all students through a grant scheme to assist with the purchase of books and equipment, attendances at conferences, childcare and travel. In addition to its other programmes, the College operates a hardship scheme for all students in financial hardship.

Academic performance

Due to Covid-19 the conventional Tripos examinations in 2021 were replaced by online assessments. During the main examination season, only final-year undergraduates and postgraduate students studying taught Master’s degrees took classed assessments; all other undergraduates sat modified assessments that were not formally classed. The results were very strong overall and included some outstanding results. A good number of Trinity Hall postgraduates continue to proceed to research fellowships and to other positions of academic distinction.

Research

For those wanting to pursue a career in academia, an important transitional step from PhD to a lectureship is the appointment of leading young academics to a Research Fellowship. The College is fortunate to have funding for five named research fellowships and there are usually six Research Fellows in College at any one time. Appointments to Research Fellowships are keenly contested, attracting many exceptional candidates from across the globe who take part in an open competition for the two posts awarded each year. Successful candidates in the 2021 competition came from the fields of Music and Chemistry. Research Fellows play an active role in College life and on leaving Trinity Hall have usually secured an excellent posting within the academic world.

Employees

In order to fulfil its charitable purposes of advancing education, religion, learning and research, the College employs as Fellows, College Lecturers, Supervisors, Director s of Studies, Tutors, a Dean of Chapel and senior administrative officers, who with the Master ex officio, serve as charity trustees through being members of the Governing Body. The employment of the Master and Fellows is undertaken with the intention of furthering the College’s aims and their employment directly contributes to the fulfilment of those aims.

The private benefit accruing to the Master and Fellows through salaries, stipends and employment related benefits is objectively reasonable, measured against academic stipends generally and are reviewed by the Stipends Committee which includes five external members. Annual pay increases normally follow national settlements applying to the university sector.

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College. The aggregated emoluments paid to key management personnel were £684,000 (£588,000). Without the employment of Fellows, the College could not fulfil its charitable aims as a College in the University of Cambridge. The Trustees received no emoluments in their capacity as Trustees of the Charity. The College also employs other full or part time members of staff (FTE 128.55 cf. FTE 133.56 in 2020) to provide the professional and service support necessary to run the College. Total costs for academic and non-academic staff for the year were £6.6 million (£6.5 million).

Internal Beneficiaries

The Master and Fellows of the College also receive benefits as beneficiaries. These comprise research grants, book grants, etc. These benefits are provided with the intention of furthering the College’s aims, primarily that of advancing research. The amounts of the benefits provided are objectively reasonable, measured against the academic benefits made available to other beneficiaries of the College.

Financial Performance

Consolidated Income and Expenditure Account

The College recorded an Unrestricted deficit of £3.33m (£0.39m), and a Restricted surplus of £1.14m (£0.69m). The overall deficit was £4.01m (£1.34m). The principle reasons were loss of income from

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TRINITY HALL Operating and Financial Review For the Year Ended 30 June 2021

conferencing activity and rent and higher expenditure on professional fees as outlined in “Overview” above.

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Total Income
2021 v 2020 & 2019
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Fees ACC Inv Inc Gifts Other
2021 2020 2019
Total Expenditure
2021 v 2020 & 2019
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Education ACC Other CU Contrib
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While academic fees grew by 7.3% to £2.69m (£2.50m), residence, catering and conferencing income fell by £1.66m from £3.66m to £2m (-45.3%). Most of this decline is attributable to loss of rental in Lent term and conference and event income for the entire year. To set this problem in a broader context this represents a decline in income from this area of £2.8m or 58.3% from the £4.8m recorded in 2018-19, our last year unaffected by COVID. We hope to remain much closer to full term-time occupancy during the current financial year and are encouraged by an upward trend in bookings and a slightly more pronounced acceleration of enquiries for future conferencing and event activity.

Income deriving from dividends and rent within the endowment declined from £6.2m to £5.7m largely due to dividend cuts from our stock holdings as the wave of COVID-induced cashflow preservation passed through the corporate world. This is now showing signs of recovery and we have also completed some excellent renewals and new lettings within the property portfolio which gives us considerable confidence for an uptick in rental and dividend income over the coming year. The amount passed across to the College to support its activities is determined by our spending rule (set at 3% of a seven year average of the net endowment amount). This rose to £7.4m from £7.1m and the difference between this and the “natural” income on the portfolio explains about 40% of the deficit at the aggregated level. Aggregate expenditure grew by 7.9% in the year. Our contribution to the University intercollegiate taxation system was slightly down by £7,000 to £213,000.

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TRINITY HALL Operating and Financial Review For the Year Ended 30 June 2021

Donations reached £3.5m vs £3.1m in the prior year. The pandemic related fund that was raised to enable the College to support students through such an interrupted period of their study and their lives has provided invaluable support. We also received a most generous benefaction of over £1m from the Larman bequest to support the study of History and Medicine. We are exceptionally grateful to our donors for their support at this most important and difficult time.

Balance sheet and Endowment performance

Net assets grew 14.4% from £313.0m to £357.9m. This was entirely driven by growth in our investment portfolio which performed very creditably. Total investment return for the year on the entire portfolio was 17.94%. The College also implemented the new investment policy ratified by Governing Body in 2020. This involved inter alia clearer definitions around asset allocation strategy and a set of specific sectoral exclusions (including directly held fossil fuel investments) as well as a timeline for meeting them. The full policy is available on the College website (https://www.trinhall.cam.ac.uk/wpcontent/uploads/2020/11/Investment-Policy-October-2020.pdf ). During the review in 2020 we considered the College’s overweight position in UK equities and, while intending to moderate that over the medium term, we concluded that UK assets were too cheap to make such a change immediately. This judgement was vindicated by an exceptional performance over the year from our UK managers who comfortably outperformed a strongly rising market. Further progress has been made since year end. We also diversified our Asian holdings by appointing a second manager in that area. While the property portfolio was quiet overall during the period under review there are some significant areas of value creation which are emerging and on which we hope to report more next year. We also completed a number of successful lettings at very attractive levels in the latter months of this year which will benefit income generation in the years ahead. Our diversifying investments did their job with unspectacular competence and we made a (modest) investment in the venture fund established to capitalise on intellectual property businesses spinning out of the University.

As part of the proposed settlement with USS in relation to the most recent scheme valuation, employers have agreed to annual debt monitoring against certain pre-agreed metrics in order to protect the overall financial strength of employers and afford the Trustee and the Pensions Regulator comfort as to their ability to support the scheme. As a scheme employer the College will be a participant in this arrangement which we broadly welcome as a brake on the risk of excessive leverage in the sector. The CCFPS revaluation was completed with a relative lack of drama, although contributions inevitably increased.

Cambridge & Counties Bank enjoyed a very strong year indeed. Having withstood the full force of COVID induced reduction in business activity at its client base in the second quarter of 2020, the quality of its portfolio was evident in the speed and completeness of the bounce back in payment levels. In the context of the unprecedented conditions of 2020 the year-end profit recorded was very satisfactory. Performance in 2021 across both new business written and portfolio credit quality has been exceptional. The new Chief Executive, Donald Kerr, is developing the opportunity created under his predecessor with ambition, discipline and focus. We are delighted with the operating performance and supportive of the strategic direction. The College’s investment was valued at £65.7m as at 30 June 2021 (£61.5m at prior year end).

Our capital programme was modest in the year, unsurprising given the numerous restrictions. The WongAvery music gallery was completed and has transformed Avery Court. It is a very special performance and rehearsal space which will greatly enhance musical life in the College. We will continue our rolling programme of staircase refurbishments this year, mindful that cost inflation across supply chains and labour markets necessitates tight budgeting. Our newly formed Buildings Committee will also commission a Master Plan to inform strategic estate planning for the next decade.

Outlook

This has been a year of extraordinary external and internal challenge for the College. We have faced a difficult combination of the unavoidable loss of rental and conference income combined with higher expenses. These have resulted in an unsatisfactory deficit for the year. However the return to normalised activity in Michaelmas 2021, the excellent returns in our diversified investment portfolio, combined with some interesting investment initiatives currently coming to fruition, offer considerable

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TRINITY HALL Operating and Financial Review For the Year Ended 30 June 2021

promise for the future. A balance sheet which has never been stronger displays the capacity to be resilient and to take opportunities. In our operations we are contending with a degree of labour shortage and supply chain weakness which is contributing to marked cost inflation. Views differ as to whether this is transitory or more durable but it seems most unlikely to evaporate in less than a year to eighteen months.

The community has faced all these challenges with what I now realise is characteristic strength and togetherness. It has also maintained an outward looking orientation which has resulted in continued exceptional contributions to research and learning, to the local community and the Collegiate University. Academic results have also been extremely strong and we have introduced an induction week this year to assist the current generation of students who have endured so much disruption in their transition to University life. We start the Michaelmas term with 12 new Fellows to welcome who will bring further energy to our community. We will continue to endeavour to generate good levels of growth in resources and to offer sound stewardship in their allocation.

On behalf of the Governing Body Timothy Harvey-Samuel 19 November 2021

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TRINITY HALL Corporate Governance and Public Benefit Statement For the Year Ended 30 June 2021

Governance

The Master and Fellows constitute the Governing Body of the College and Junior Member representatives are invited to meetings (for unrestricted business). The Governing Body is constituted and regulated in accordance with the College Statutes. The body is responsible for the strategic direction of the College, for its on-going administration, and for the management of its finances and assets. Meetings are held eight times a year under the chairmanship of the Master. Supporting the Governing Body is a range of committees and advisory groups including: Finance, Fellowship, Development, Education Policy, Statutes & Ordinances, PREVENT, Buildings and Estate Operations. Responsibilities of the Governing Body are more fully described on page 17.

The Governing Body are also the Trustees of the charity and are listed on page 3, along with the principal officers. On appointment, all Trustees are made aware of the Charity Commission’s guidance on public benefit and that their duty as a Trustee is to ensure the Charity is carrying out its purposes for the public benefit. There is a Register of Interests of Trustees and declarations of interest are made systematically at all meetings.

Investment policy

Trinity Hall’s endowment funds are managed day-to-day on a discretionary basis by selected leading financial services and property investment management companies. The College’s investment policy (including ESG principles), which was approved in Michaelmas 2020, is available on the College website (https://www.trinhall.cam.ac.uk/wp-content/uploads/2020/11/Investment-Policy-October2020.pdf).

The College monitors the performance of its chosen managers through regular meetings of its Finance (Investments) and Finance (Property) Committees, which bodies also decide asset allocation issues (with periodic review by Governing Body). Membership of these committees is composed of those Fellows of the College who are members of the Finance Committee, augmented by the presence of the managers of individual investment portfolios and external professional advisers in an advisory capacity.

Asset classes that can be held include, but are not limited to: UK and international large, medium and small cap equities, and unit trusts and investment trusts comprising these, property (held both directly and indirectly), fixed income instruments, hedge funds and other diversifying assets, private equity and venture capital funds, soft and hard commodities funds, all forms of derivatives and financial futures, and cash.

Trinity Hall adheres to Charity Commission guidelines and principles of general fiduciary law governing the requirement to invest to maximise returns consistent with the College’s aims, interests and purposes.

Reserves policy

Trinity Hall regards itself as a perpetual institution and thus manages its investments for the longterm. The investment strategy aims to increase the College's wealth and therefore its free reserves over time at least in line with, and preferably in excess of, inflation in order that it will always be able to fulfil its obligations and responsibilities to current and future generations of beneficiaries. The College’s charitable mission is centred on the support of education and research and it aims to be able to grow its provision in real terms over time in fulfilment of this mission.

The College employs a Total Return Policy to determine the level of draw down from the endowment each year necessary to support its operational spending requirements (the Spending Rule). This Spending Rule is calculated using a seven-year rolling average for the value of the College’s investments (net of loans) and is currently set at 3.0%. The College periodically reviews the Spending Rule and may make adjustments according to prevailing interest rate, inflation and return expectations. The sum drawn down each year is transferred to income where it is used to support the operations of the College. Substantial new donations or bequests received during the year are added to unrestricted funds, unless the donor has specified a restricted purpose.

At 30 June 2021 Trinity Hall had £99.5 million (£80.6m) in restricted reserves and unrestricted reserves of £258.4 million (£232.3 m) of which £96.0 million (£96.0m) is represented by fixed assets.

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TRINITY HALL Corporate Governance and Public Benefit Statement For the Year Ended 30 June 2021

The £162.4 million (£136.3 m) of unrestricted reserves that are not accounted for within fixed assets are invested and the Total Return Policy is applied.

The purpose of a Reserves Policy is to operate as a protective buffer so as to ensure that a charity has sufficient funds in the event of significant operational and/or financial difficulty. In the College’s case, in addition to usual operational expenses, the cost of liabilities were the worst to happen, is deemed to include the scale of the deficits on the USS and CCFPS pension schemes, any unexpected large-scale capital expenditure on the College estate and increasing levels of support for academic activities. The College aims to maintain sufficient free reserves to cover three to five years’ expenditure. Within these reserves sufficient liquid assets are to be kept on hand such that one year’s expenditure could be raised within fourteen days and three years’ expenditure within three months. This seems appropriate in the light of our intention to manage risk and volatility within acceptable parameters while being able to fulfil our charitable mission in perpetuity.

Fundraising

The approach taken by the College to fundraising activities is to support key priorities, identified by the Governing Body in accordance with the College’s charitable mission and strategic direction.

Fundraising techniques include telephone fundraising using live calls only, direct mail and e-mail, crowd-funding, the promotion of legacy giving and face-to-face fundraising by private meeting with potential major donors. The College may partner with professional fundraisers in line with the guidance laid out by the Fundraising Regulator.

The College has been registered with the Fundraising Regulator since 2017. There has been no failure to comply with its code and no complaints received since we have registered.

To protect vulnerable people and other members of the public the College acts in the following way:

Principal risks and uncertainties

As part of its supervision of the College's activities, the Finance Committee (Audit) identifies and considers the major risks to which the College is exposed, and establishes procedures to manage those risks.

There are four main types of economic risk, relating to:

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TRINITY HALL Corporate Governance and Public Benefit Statement For the Year Ended 30 June 2021

There are, as always, uncertainties regarding the future external environment within which the College will operate, most notably regarding higher education policy and funding. The Finance Committee considers however that the College will be able to respond effectively to changes in that environment.

The principal risks and uncertainties that the College faces may be briefly summarised:

Safeguarding and vulnerable adults policy

Trinity Hall recognises that Fellows, staff and students of the College may sometimes work with children and other vulnerable individuals in the course of their duties. In this context, the College is committed to respecting the rights, wishes and well-being of individuals with whom it is working; taking all reasonable steps to protect them from physical, sexual and emotional abuse; promoting the welfare of children and vulnerable individuals, and ensuring their protection within a relationship of trust.

The College’s Safeguarding Policy has been established to support these commitments and to ensure that the College fulfils its obligations under the Safeguarding Vulnerable Groups Act 2006 and subsequent legislation.

Environmental policy

In achieving excellence in teaching and research, Trinity Hall manages its activities, buildings and estates to promote environmental sustainability, conserves and enhances natural resources and

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TRINITY HALL Corporate Governance and Public Benefit Statement For the Year Ended 30 June 2021

prevents environmental pollution to bring about a continual improvement in its environmental performance.

Equal opportunities

The College is committed to the principle and practice of equal opportunities and aims to be an equal opportunities employer. The College’s employment policy seeks to ensure that no job applicant or employee receives less favourable treatment on any grounds that are unjustified in terms of equality of opportunities for all.

Public benefit statement

Public benefit is the way that a charity makes a positive difference to the public. Not everything that is of benefit to the public will be charitable. Public benefit in a charitable sense is only provided by activities which are undertaken to advance an organisation’s charitable purposes.

In accordance with its Founding Charter and Statutes, the College’s charitable purpose is to advance education, religion, learning and research for the public benefit by the provision, support and maintenance of a College in the University of Cambridge. A full statement of the public benefit it provides has been lodged with the Charity Commission. It is summarised as follows:

Education:

Research:

The College carries forward the tradition, continuous since its foundation, of being a place of spiritual and ethical reflection on the Christian faith and its implications for the individual and society. In particular the College:

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TRINITY HALL Corporate Governance and Public Benefit Statement For the Year Ended 30 June 2021

The College maintains an extensive Library (including important special collections), so providing a valuable resource for students and Fellows of the College, members of other colleges and the University of Cambridge more widely, external scholars and researchers, as well as local children from maintained and other schools through educational visits and the public through regular exhibitions.

The resident members of the College, both students and academic staff, are the primary beneficiaries and are directly engaged in education, religion , learning or research. However, beneficiaries also include: students and academic staff from other colleges in Cambridge and the University of Cambridge more widely, visiting academics from other higher education institutions and visiting school children and alumni of the College who have an opportunity to attend educational events at the College or use its academic facilities. The general public are also able to attend various educational activities in the College such as exhibitions in the library and public rooms. Concerts open to the public are also held in College and external venues.

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TRINITY HALL Responsibilities of the Governing Body and Statement of Internal Control For the Year Ended 30 June 2021

The Governing Body is responsible for the administration and management of the College’s affairs.

The Governing Body presents audited financial statements for each financial year. These are prepared in accordance with the provisions of the Statutes of the College and of the University of Cambridge and applicable United Kingdom Accounting Standards, including the Statement of Recommended Practice ‘Accounting for Further and Higher Education Institutions’, as interpreted by the University of Cambridge in their Recommended Cambridge College Accounts.

With reference to the above provisions, the Governing Body is responsible for ensuring that there is an effective system of internal control and that accounting records are properly kept. It is required to present audited financial statements for each financial year, prepared in accordance with the Statues of the University.

In causing the financial statements to be prepared, the Governing Body are required to ensure that they:

The Governing Body is satisfied that the College has adequate resources to continue in operation for the foreseeable future. The financial statements are accordingly prepared on a going concern basis.

The Governing Body has taken reasonable steps to ensure that there are appropriate financial and management controls in place to safeguard the assets of the College and prevent and detect fraud.

Any system of internal financial control, however, can only provide reasonable, not absolute, assurance against material misstatement or loss.

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

Page | 17

TRINITY HALL Independent Auditors’ Report to the Governing Body of Trinity Hall For the Year Ended 30 June 2021

Opinion

We have audited the financial statements of Trinity Hall (the ‘College) for the year ended 30 June 2021 which comprise the Consolidated Statement of Comprehensive Income and Expenditure, the Consolidated Statement of Changes in Reserves, the Consolidated and College Balance Sheets, the Consolidated 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:

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 Governing Body 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

Page | 18

TRINITY HALL Independent Auditors’ Report to the Governing Body of Trinity Hall For the Year Ended 30 June 2021

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.

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:

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 Operating and Financial Review.

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:

Responsibilities of the Governing Body

As explained more fully in the responsibilities of the Governing Body statement set out on page 17, the Governing Body 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 Governing Body 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 Governing Body 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:

Page | 19

TRINITY HALL Independent Auditors’ Report to the Governing Body of Trinity Hall For the Year Ended 30 June 2021

We assessed the susceptibility of the College’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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 noncompliance 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.

Page | 20

TRINITY HALL Independent Auditors’ Report to the Governing Body of Trinity Hall For the Year Ended 30 June 2021

Use of our report

This report is made solely to the College’s Governing Body 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 Governing Body 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 Governing Body 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 | 21

TRINITY HALL Accounting Policies

Basis of preparation

The financial statements have been prepared in accordance with the provisions of the Statutes of the College and of the University of Cambridge, 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 8.

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.

Basis of consolidation

The consolidated financial statements include the College and its subsidiary undertakings. Details of the subsidiary undertakings included are set out in note 27. Intra-group balances are eliminated on consolidation. The consolidated financial statements do not include the activities of student societies as these are separate bodies in which the College has no financial interest and over whose policy decisions it has no control.

Recognition of income

Academic fees

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

Donations and endowments

Non exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised within the Statement of Comprehensive 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:

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

Page | 22

TRINITY HALL Accounting Policies

Total Return

Investment fund and long dated borrowing fund income is credited to the income and expenditure account on a total return basis. Non investment fund income is credited in the period in which it is earned. Income from restricted endowments not expended in accordance with the restrictions of the endowment is transferred from the income and expenditure account to restricted endowments. Investment fund income taken to the income and expenditure account under the recognition of income on a total return basis is calculated at 3.0% (2020:3.0%) of an average of the market value of the investment assets. The long dated borrowing fund total return is calculated to ensure fund income matches the fund expenditure.

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 income and expenditure for the financial year.

Other income

Income is received from a range of activities including accommodation, catering conferences and other services rendered.

Cambridge Bursary Scheme

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

The net payment of £119,855 is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows:

Income (note 1) £130,605 Expenditure £250,460

Endowment and investment income

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.

Fixed assets

Land and buildings

Land and buildings are valued at depreciated replacement cost. Freehold buildings are depreciated on a straight line basis over their expected useful economic life of 50 years. Freehold land is not depreciated. The Central Site land has not been included.

Where land and buildings are acquired with the aid of specific bequests or donations they are capitalised and depreciated as above. The related benefactions are credited to a deferred capital account and are released to the Income and Expenditure Account over the expected useful economic life of the related asset on a basis consistent with the depreciation policy.

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

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

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

Page | 23

TRINITY HALL Accounting Policies

Maintenance of premises

The College has a rolling maintenance plan which is reviewed on an annual basis. The cost of routine maintenance is charged to the income and expenditure account as it is incurred or capitalised and depreciated over the useful economic life of the asset concerned.

Equipment and motor vehicles

Furniture, fittings and equipment (excluding motor vehicles and art ) costing less than £10,000 is written off in the year of acquisition. The organ which is included within plant and equipment is depreciated at 2% per annum, based on its expected useful life. Other assets are capitalised and depreciated on a straight line basis over their expected useful life as follows:

Furniture and fittings 10% per annum Motor vehicles 20% per annum Plant and equipment 5%-20% per annum Computer equipment 33% per annum

For assets which have a useful economic life of greater than 100 years an annual impairment review is undertaken to ensure the carrying value is still appropriate.

Where equipment is acquired with the aid of specific bequests or donations it is capitalised and depreciated as above. The related benefactions are credited to a deferred capital account and are released to the income and expenditure account over the expected useful economic life of the related asset on a basis consistent with the depreciation policy.

Leased assets

Fixed assets held under finance leases and the related lease obligations are recorded in the balance sheet at the fair value of the leased assets at the inception of the lease. The excesses of lease payments over recorded lease obligations are treated as finance charges which are amortised over each lease term to give a constant rate of charge on the remaining balance of the obligations. Rental costs under operating leases are charged to expenditure in equal amounts over the periods of the leases.

Heritage assets

The College holds and conserves a number of collections, exhibits, artefacts and other assets of historical, artistic or scientific importance. Acquisitions of heritage assets have been capitalised at cost or, in the case of donated assets, at expert valuation on receipt. Heritage assets are not depreciated since their long economic life and high residual value mean that any depreciation would not be material. The College does not consider that it holds any assets that should be classified as heritage assets.

Shared Equity Scheme Debtors

Debtors due from Fellows on "shared equity schemes" occur where the college has provided a portion of the finance of a house purchase and are included within debtors due after one year. Under the scheme rules these amounts are due for repayment on the earliest of: The date on which there is a future sale of the property or within two years of a Fellow ceasing to be an eligible Fellow whether by resignation, retirement death or otherwise, or a Fellow acquires the colleges' share of the value of the property.

Investments

Fixed asset investments are included in the balance sheet at fair value, except for investments in subsidiary undertakings which are stated in the College’s balance sheet at cost and eliminated on consolidation. Investments that are not listed on a recognised stock exchange are carried at historical cost less any provision for impairment in their value/market value.

Stocks

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

Page | 24

TRINITY HALL Accounting Policies

Financial Instruments

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

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

Financial assets

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

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

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

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

Financial Liabilities

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

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

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

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

Page | 25

TRINITY HALL Accounting Policies

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

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

Provisions

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

Taxation

The College is a registered charity (number 1137458) and also a charity within the meaning of Section 467 of the Corporation Tax Act 2010. Accordingly the College is exempt from taxation in respect of income or capital gains received within the categories covered by Sections 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 Schemes

The institution participates in the Universities Superannuation Scheme. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The institution 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 institution therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the Statement of Comprehensive Income and Expenditure represents the contributions payable to the scheme. Since the institution has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the institution recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and therefore an expense is recognised.

The College also contributes to the Cambridge Colleges Federated Pension Scheme, which is a similar defined benefit pension scheme. Unlike the Universities Superannuation Scheme, this scheme has surpluses and deficits directly attributable to individual Colleges. Pension costs are accounted for over the period during which the College benefits from the employees' services.

Since 2010 The College contributes to a third scheme, The Cambridge Colleges Group Personal Pension Scheme (CCGPPS), a defined contribution scheme, for new employees. The scheme is administered by Aviva.

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.

Page | 26

TRINITY HALL Accounting Policies

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.

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.

Income recognition – 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. In general, the later are recognised when at the probate stage.

Useful lives of property, plant and equipment – 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

Recoverability of debtors – 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. Investment property – Properties are revalued to their fair value at the reporting date by our Property Agents, Savills and Bidwells. The valuation is based on the assumptions and judgements which are impacted by a variety of factors including market and other economic conditions.

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

Management are satisfied that Universities Superannuation Scheme meets the definition of a multiemployer scheme and has therefore recognised the discounted fair value of the contractual contributions under the funding plan in existence at the date of approving the 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 2018 actuarial valuation, which defines the deficit payment required as a percentage of future salaries until 2020. These contributions will be reassessed within each triennial valuation of the scheme. The provision is based on management’s estimate of expected future salary inflation, changes in staff numbers and the prevailing rate of discount. Further details are set out in note 26.

Page | 27

TRINITY HALL

Consolidated Statement of Comprehensive Income and Expenditure Account For the Year Ended 30 June 2021

INCOME
Note
Academic fees and charges
1
Accommodation, catering and conferences
2
Endowment return transferred
3
Other investment income
3
Other income
5
Total income before donations and endowments
Donations
4
New endowments
Other capital grants for assets
4
Total Income
EXPENDITURE
Education
6
Accommodation, catering and conferences
7
Other expenditure
8
Contribution under statute G.II
Total expenditure
Surplus (deficit) before other gains and losses
Gains/(loss on disposal of fixed assets
Gains/(loss) on investments
Gains/(loss) on investments – non-controlling interest (NCI)
Gains/(loss) other
Surplus (deficit) for the year
Other comprehensive income
Actuarial gain/(loss) in respect of pension schemes
Total comprehensive income for the year
Total comprehensive income for the year – Parent
Total comprehensive income for the year - NCI		 Unrestricted
Year Ended
30 June 21
£000
2,684
2,001
5,370
(18)
726		 Restricted
Endowment
Total
Year Ended
30 June 21
Year Ended
30 June 21
Year Ended
30 June 21
£000
£000
£000
131
2,815
2,001
2,022
(7,392)
-
67
5,681
5,730
726		 Unrestricted
Year Ended
30 June 20
£000
2,503
3,655
5,180
(147)
610		 Restricted
Endowment
Total
Year Ended
30 June 20
Year Ended
30 June 20
Year Ended
30 June 20
£000
£000
£000
105
-
2,608
-
-
3,655
1,873
(7,053)
-
89
6,226
6,168
-
-
610
10,763
832
250		 2,220
(1,711)
11,272
476
1,308
1,573
1,573
404
654		 11,801
1,264
-
-		 2,067
(827)
13,041
510
-
1,771
-
78
78
1,214
-
1,214
11,845 3,100
(138)
14,807		 13,065 3,791
(749)
16,106
5,335
4,727
4,978
131		 1,843
7,178
4,727
35
1,686
6,699
82
213		 3,577
5,409
4,332
135		 2,988
-
6,566
-
-
5,409
26
890
5,248
85
-
220
15,171 1,960
1,686
18,817		 13,454 3,099
890
17,443
(3,326) 1,140
(1,824)
(4,010)		 (389) 692
(1,639)
(1,337)
-
-
27,279
2,416
18,250
47,945
(4)
(4)
(102)
(102)		 -
-
-
-
(5,126)
(371)
(745)
(6,242)
-
(53)
-
( 53)
23,851
3,552
16,426
43,829
1,138
1,138		 (5,515)
267
(2,384)
(7,632)
(1,011)
-
-
(1,011)
24,989
3,552
16,426
44,967		 (6,526)
267
(2,384)
(8,643)
24,989
3,523
16,426
44,938		 (6,526)
257
(2,384)
(8,653)
-
29
-
29		 -
10
-
10

Page | 28

TRINITY HALL Consolidated Statement of Changes in Reserves For the Year Ended 30 June 2021

INCOME AND EXPENDITURE RESERVE INCOME AND EXPENDITURE RESERVE INCOME AND EXPENDITURE RESERVE
STATEMENT OF CHANGE IN RESERVES Unrestricted Restricted Endowment TOTAL
£000 £000 £000 £000
BALANCE AT 01 JULY 2020 232,335 12,645 67,994 312,974
Surplus/(Deficit) from income and expenditure statement 23,851 3,552 16,426 43,829
Other comprehensive income 1,138 - - 1,138
Release of restricted capital funds spent in the year 1,405 (1,405) - -
Transfers between revaluation and income and expenditure reserve (364) 357 7 0
Non-controlling interests acquired APP - 120 - 120
Distributions to non-controlling interests APP - (192) - (192)
BALANCE AT 30 JUNE 2021 258,365 15,077 84,427 357,869
INCOME AND EXPENDITURE RESERVE
STATEMENT OF CHANGE IN RESERVES Unrestricted Restricted Endowment TOTAL
£000 £000 £000 £000
BALANCE AT 01 JULY 2019 237,655 13,346 70,378 321,379
Surplus/(Deficit) from income and expenditure statement (5,515) 267 (2,384) (7,632)
Other comprehensive income (1,011) - - (1,011)
Transfers between revaluation and income and expenditure reserve - - - -
Non-controlling interests acquired APP - 267 - 267
Distributions to non-controlling interests APP - (29) - (29)
Release of restricted capital funds spent in the year 1,206 (1,206) - -
BALANCE AT 30 JUNE 2020 232,335 12,645 67,994 312,974

Page | 29

TRINITY HALL Consolidated Balance Sheet As at 30 June 2021

Note
Non-Current Assets
Fixed assets
Investments
10
11
Total non-current assets
Current Assets
Stock
Debtors
Cash
12
13
Creditors: amounts falling due within one year
14
Net current assets
Creditors: amounts falling due after more than one year
15
Net assets excluding pension liability
Pension Liability
16
Net assets including pension asset/(liability)
Represented by:
Restricted Reserves
Income and expenditure reserve-endowment reserve (Restricted)
Income and expenditure reserve-restricted reserve
17
18
Unrestricted Reserves
Income and expenditure reserve-unrestricted
TOTAL RESERVES		 30 Jun 21
£000

95,968
335,266
431,234
397
3,049
9,140
12,586
(3,550)
9,036
(75,000)
365,270
(7,401)
357,869
Total
30 Jun 21
£
84,427
15,077
99,504
258,365
357,869		 30 Jun 20
£000
96,008
289,877
385,885
381
4,218
9,372
13,971
(3,414)
10,557
(75,000)
321,442
(8,468)
312,974
Total
30 Jun 20
£
67,994
12,645
80,639
232,335
312,974

The financial statements were approved by the Governing Body on 02 November 2021 and signed on its behalf by:

…………………………………………………………………………. Tim Harvey-Samuel Bursar Date: 19 November 2021

Page | 30

TRINITY HALL College Balance Sheet As at 30 June 2021

Note
Non-Current Assets
Fixed assets
Investments
10
11
Total non-current assets
Current Assets
Stock
Debtors
Cash
12
13
Creditors: amounts falling due within one year
14
Net current assets
Creditors: amounts falling due after more than one year
15
Net assets excluding pension liability
Pension Liability
16
Net assets including pension asset/(liability)
Represented by:
Restricted Reserves
Income and expenditure reserve-endowment reserve (Restricted)
Income and expenditure reserve-restricted reserve
17
18
Unrestricted Reserves
Income and expenditure reserve-unrestricted
TOTAL RESERVES		 30 Jun 21
£000
96,496
332,470
428,966

395
6,567
6,862
13,824
(3,233)
10,591
(75,000)
364,557
(7,401)
357,156
Total
30 Jun 21
£
84,427
13,943
98,370
258,786
357,156		 30 Jun 20
£000
96,535
286,737
383,272
381
7,471
7,870
15,722
(3,426)
12,296
(75,000)
320,568
(8,468)
312,100
Total
30 Jun 20
£
67,994
11,468
79,462
232,638
312,100

The financial statements were approved by the Governing Body on 02 November 2021 and signed on its behalf by:

…………………………………………………………………………. Tim Harvey-Samuel Bursar

Date: 19 November 2021

Page | 31

TRINITY HALL Consolidated Cash Flow Statement For the Year Ended at 30 June 2021

Note
Net Cash (Outflow)/Inflow from Operating Activities
20
Cash flow from investing activities
21
Contribution to colleges fund
Cash flows from financing activities
21
(Decrease)/Increase in cash and cash equivalents in year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
22		 30 Jun 21
£000

4,772
(2,184)
(213)
(2,607)
(232)
9,372
9,140		 30 Jun 20
£000
(7,108)
(2,580)
(220)
(2,606)
(12,514)
21,886
9,372

Page | 32

TRINITY HALL NOTES TO THE ACCOUNTS

1. ACADEMIC FEES AND CHARGES

College fees:
Fee income received at the regulated Undergraduate rate
Fee income received at the unregulated Undergraduate rate
Fee income received at the Postgraduate rate
Other income
Cambridge Bursaries Income
CCOMODATION, CATERING AND CONFERENCES INCOME
Accommodation
College Members
Conferences
Catering
College Members
Conferences
NDOWMENT AND INVESTMENT INCOME
3a. Analysis
Income from:
Non-Investment fund
Investment fund total return
Other investment income
3b. Summary of total return
Endowment income from:
Assets included in the Investment fund
Assets not included in the Investment fund
Gains/(losses) on Endowment Assets:
Land and buildings
Quoted and other securities and cash
Total return for the year
Total return transferred to the income and expenditure account (see note 3a)
Total return transferred to the Balance Sheet (Boat Club & St Edwards)
Investment managers costs (see note 3c)
Unapplied Total Return for the year included within the
Statement of Total Recognised Gains and Losses (see note 19)
3c. Investment management costs
Investment management costs		 30 Jun 21
£000
1,590
484
590
20
2,684
131
2,815
30 Jun 21
£000
1,736
30
231
4		 30 Jun 20
£000
1,448
462
569
24
2,503
105
2,608
30 Jun 20
£000
1,678
662
615
700
3,655
Total
30 Jun 20
£000
(147)
7,053
89
2,001
Total
30 Jun 21
£000
(18)
7,569
67
7,618
30 Jun 21
£000
5,681
(18)
1,634
46,382
53,679
(7,393)
(176)
(1,686)

44,424
30 Jun 21
£000
1,686
1,686
6,995
30 Jun 20
£000
6,226
(147)
1,360
(7,602)



(163)
(7,053)
(84)
(890)
(8,190)
30 Jun 20
£000
890
890

2. ACCOMODATION, CATERING AND CONFERENCES INCOME

3. ENDOWMENT AND INVESTMENT INCOME

Page | 33

TRINITY HALL NOTES TO THE ACCOUNTS

4. DONATIONS

Unrestricted donations
Restricted donations
5.
OTHER INCOME
Other income
6.
EDUCATION EXPENDITURE
Teaching
Tutorial
Admissions and Access
Research
Scholarships and Awards
Other Educational Facilities
7.
ACCOMODATION, CATERING AND CONFERENCES EXPENDITURE
Accommodation
Catering
College Members
Conferences (incl. marketing costs)
College Members
Conferences		 30 Jun 21
£000
1,082
880
1,962
30 Jun 21
£000
726
726
30 Jun 21
£000
2,817
1,019
553
768
1,036
984
7,177
30 Jun 21
£000
4,150
24
553
-
4,727		 30 Jun 20
£000
1,264
1,724
2,988
30 Jun 20
£000
610
610
30 Jun 20
£000
2,647
688
537
689
917
1,088
6,566
30 Jun 20
£000
2,588
926
949
946
5,409

6. EDUCATION EXPENDITURE

7. ACCOMODATION, CATERING AND CONFERENCES EXPENDITURE

8. ANALYSIS OF EXPENDITURE

8a. ACTIVITY 2021
Note
Education
Accommodation, Catering and
conferences
Other
6
7
8c
8b. ACTIVITY 2020
Education
Accommodation, Catering and
Conferences
Other
6
7
8c		 Staff & Fellows
Payroll Costs
(Note 9)
£000
2,881
3,086
655
6,622
2,811
3,086
649
6,546		 Depreciation
(Note 10)
£000
355
1,319
-
1,674
448
1,132
-
1,580		 Other
Operating
Expenses
£000
3,942
322
6,257
10,521
3,307
1,191
4,819
9,317		 Total
£000
7,178
4,727
6,912
18,817
6,566
5,409
5,468
17,443

Page | 34

TRINITY HALL NOTES TO THE ACCOUNTS

8c. OTHER EXPENDITURE

8c. OTHER EXPENDITURE
Investment and property management
Third party costs
Internal costs
Long dated borrowing interest and set-up charges
Fundraising
Alumni
Miscellaneous
Other
Contribution under Statutes G.II
8d. AUDITORS REMUNERATION
Other operating expenses include:
Audit fees payable to the College’s external auditors		 30 Jun 21
£000
2,087
214
2,301
2,607
782
168
128
713
213
6,912
30 Jun 21
£000
26
26		 30 Jun 20
£000
1,428
195
1,623
2,605
715
157
122
26
220
5,468
30 Jun 20
£000
25
25

9. STAFF COSTS

Staff Costs*
Emoluments
Social Security Costs
Other Pension Costs
Average Staff Numbers
Academic
Non-Academic		 Academic
30 Jun 21
£000
1,547
103
132
1,782
70
-
70		 Non-
Academics
30 Jun 21
£000
3,880
355
605
4,840
-
129
129		 Total
30 Jun 21
£000
5,427
458
737
6,622
70
129
199		 Total
30 Jun 20
£000
5,595
450
501
6,546
70
134
204

At the Balance Sheet date there were 70 members of the Governing Body. During the year the average number receiving remuneration was 63.The number of officers and employees of the College, including Head of House, who received emoluments in the following ranges was:

30 Jun 21 30 Jun 20
£000 £000
£100,000 - £110,000 1 2
£110,001 - £120,000 2 1
£120,001 - £130,000 2 1
£130,001 - £140,000 0 0

Remuneration includes salary, employer’s national insurance contributions, employer’s pension contributions plus any taxable benefits either paid, payable or provided, gross of any salary sacrifice arrangements.

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College. The aggregated remuneration paid to key management personnel consists of salary, employer’s national insurance contributions, employer’s pension contributions, plus any taxable benefits either paid, payable or provided gross of any salary sacrifice arrangements.

Page | 35

TRINITY HALL NOTES TO THE ACCOUNTS

Key management personnel
The Trustees received no emoluments in their capacity as Trustees
10. FIXED ASSETS
Fixed Assets Group
Tangible Assets
Buildings
£000
Land
£000
Cost or valuation
At the beginning of the year
74,507
20,004
Additions
Disposals at Cost/Valuation
1,531
-
-
At the end of the year
76,038
20,004
Depreciation
At the beginning of the year
9,906
-
Provided for the year
Eliminated on Disposal
1,534
-
-
At the end of the year
11,440
-
Net book value
At the end of the year
64,598
20,004
At the beginning of the year
64,601
20,004
Fixed Assets College
Tangible Assets
Land
£000
Buildings
£000
Cost or valuation
At the beginning of the year
75,034
20,004
Additions
Disposals at Cost/Valuation
1,531
-
-
-
At the end of the year
76,565
20,004
Depreciation
At the beginning of the year
9,906
-
Provided for the year
Eliminated on Disposal
1,534
-
-
-
At the end of the year
11,440
-
Net book value
At the end of the year
65,125
20,004
At the beginning of the year
65,128
20,004		 of the Charity.
Equipment
£000
13,469
103
-
13,572
2,066
140
2,206
11,366
11,403
Equipment
£000
13,469
103
-
13,572
2,065
140
-
2,205
11,367
11,404		 30 Jun 21
£000
684
30 Jun 21
Total
£000
107,980
1,634
-
109,614
11,972
1,674
13,646
95,968
96,008
30 Jun 21
Total
£000
108,507
1,634
-
110,141
11,971
1,674
-
13,645
96,496
96,536		 30 Jun 20
£000
588
30 Jun 20
Total
£000
105,747
2,233
-
107,979
10,391
1,580
-
11,971
96,008
95,355
30 Jun 20
Total
£000
106,275
2,232
-
108,507
10,391
1,580
-
11,971
96,536
95,883

The insured value of freehold land and buildings as at 30 June 2021 was £134,825,537 Land and buildings are valued at depreciated replacement cost.

The valuation on 30 June 2012 was carried out by Gerald Eve, Chartered Surveyors.

Page | 36

TRINITY HALL NOTES TO THE ACCOUNTS

11. FIXED ASSETS INVESTMENTS AND ENDOWMENT ASSETS

Total Investment Assets
Balance as at 1 July 2020
Additions
Disposals
Appreciation on revaluation
Decrease in Cash Balances
Balance as at 30 June 2021
Represented by:
Freehold Land and Buildings
Quoted Securities – Equities
Quoted Securities – Indirect Property (restated)
Alternative Investments
Unquoted Securities – Equities (restated)
Investment In Subsidiary Undertakings
Cash held at Brokers		 30 Jun 21
Group
£000
289,877
44,334
(42,676)
40,845
2,886
335,266
66,116
184,025
1,073
6,536
71,586
-
5,930
335,266		 30 Jun 20
Group
£000
286,665
56,244
(49,905)
(2,472)
(655)
289,877
64,645
148,436
1,177
6,108
66,469
-
3,044
289,877		 30 Jun 21
College
£000
286,737
44,335
(42,676)
41,188
2,886
332,470
61,774
184,025
1,073
6,536
71,330
1,802
5,930
332,470		 30 Jun 20
College
£000
282,452
56,244
(49,905)
(1,399)
(655)
286,737
59,701
148,436
1,177
6,108
66,469
1,802
3,044
286,737

Page | 37

TRINITY HALL NOTES TO THE ACCOUNTS

12. DEBTORS
30 Jun 21
Group
£000
30 Jun 20
Group
£000
Members of the College
13
80
Amounts due from Subsidiary Undertaking
-
-
Other Debtors
Prepayments and accrued income
2,358
678
3,545
593
3,049
4,218
13. CASH
Bank Deposits
3
3
Current Accounts
Cash in hand
9,136
1
9,368
1
9,140
9,372
14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
523
314
Members of the College
Amounts due to Subsidiary Undertaking
224
-
249
-
Contribution to Colleges Fund
223
226
Accruals and deferred income
Other
1,827
753
1, 951
674
3,550
3,414
15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Barclays, PRICOA and PIC loans
(Investment borrowing)
65,000
65,000
Cambridge Colleges Bond Issue
(Operational borrowing)
10,000
10,000
Deferred income
-
-
75,000
75,000		 30 Jun 21
College
£000
13
3,753
2,174
627
6,567
3
6,858
1
6,862
434
224
222
223
1,613
517
3,233
65,000
10,000
-
75,000		 30 Jun 20
College
£000
80
3,690
3,108
593
7,471
3
7,866
1
7,870
314
249
194
226
1,951
492
3,426
65,000
10,000
-
75,000

The Barclays bank loan is repayable in 2047 and bears interest at a blended rate of 4.86%.

During 2014 the College borrowed from institutional investors, collectively with other colleges, the College’s share being £10 million. The loans are unsecured and repayable during the period 2043-2053 and are at fixed rates of approximately 4.4%. Although issued through a funding vehicle, the College has no responsibility for the obligations of any other of the issuing colleges.

During 2016 the College borrowed £15 million from the Pricoa Capital Group on private placement, coupon 1.98%, maturity 31 July 2056.

During 2018 the College borrowed £25 million from the Pension Insurance Corporation on private placement, coupon 2.59%, maturity 5 October 2068.

16. PENSION LIABILITIES

GROUP AND COLLEGE
Balance at the beginning of the year
CCFPS/USS
Recognised in income and expenditure
Contributions paid by the College
Actuarial gain/(loss) recognised in OCI
Balance at the end of the year CCFPS/USS		 CCFPS
2021
8,010
414
(309)
(1,138)
6,977		 USS
2021
459
176
(211)
-
424		 Total
2021
8,468
591
(520)
(1,138)
7,401		 Total
2020
7,595
382
(520)
1,011
8,468

Page | 38

TRINITY HALL NOTES TO THE ACCOUNTS

17.
ENDOWMENT FUNDS
Balance at the beginning of the year:
New endowments received
Transfers
Increase in the market value of investments
Balance at the end of the year
Representing:
Fellowship funds
Scholarship funds
Prize funds
Hardship funds
Travel grant funds
Other funds		 Restricted
Permanent
Endowments
£000
67,994
1,573
7
14,853
84,427
26,502
20,230
1,796
8,668
3,482
23,749
84,427		 30 Jun 21
Total
£000
67,994
1,573
7
14,853
84,427
26,502
20,230
1,796
8,668
3,482
23,749
84,427		 30 Jun 20
Total
£000
70,377
78
-
(2,461)
67,994
21,718
16,539
1,466
5,957
2,858
19,456
67,994

18. RESTRICTED RESERVES

Group and College
Capital
grants
unspent
£000
Balance at the beginning of the
year:
858
Income receivable from
endowment asset investments
31
Academic fees
-
New donations
404
Release of restricted capital
funds
(1,405)
Expenditure
-
Transfers
-
Increase in the market value of
investments
257
Balance at the end of the year:
145
Representing:
Fellowship funds
-
Scholarship funds
-
Prize funds
-
Hardship funds
-
Travel grant funds
-
Other funds
145
College balance
145
NCI GROUP B/Fwd.:
Non-controlling interest share of comprehensive income
Non-controlling interests acquired APP
Distributions to non-controlling interests APP
Group balance		 Permanent
Unspent and
other
Restricted
Income
£000
7,209
1,867
-
165
-
(1,200)
707
1,447
10,195
3,725
1,790
254
578
358
3,490
10,195
for the year		 Restricted
expendable
endowment
£000
3,401
125
131
311
-
(726)
(351)
712
3,603
198
1,478
54
227
34
1,612
3,603		 30 Jun 21
Total
£000
11,468
2,023
131
880
(1,405)
(1,926)
356
2,416
13,943
3,923
3,268
308
805
392
5,247
13,943
1,177
29
120
(192)
15,077		 30 Jun 20
Total
£000
12,416
1,873
105
1,724
(1,206)
(3,073)
-
(371)
11,468
3,331
2,755
246
643
390
4,103
11,468
929
10
267
(29)
12,645

Group balance

Page | 39

TRINITY HALL NOTES TO THE ACCOUNTS

19. MEMORANDUM OF UNAPPLIED TOTAL RETURN

Included within reserves the following amounts represent the Unapplied Total Return of the College:

Unapplied Total Return at the beginning of the year
Unapplied Total Return for the year (see note 3b)
Unapplied Total Return at the end of the year		 30 Jun 21
Total
£000
169,237
44,424
213,661		 30 Jun 20
Total
£000
177,427
(8,190)
169,237

20. RECONCILIATION OF CONSOLIDATED SURPLUS TO NET CASH FLOWS FROM OPERATING ACTIVITIES

Note
Surplus for the year
Adjustment for non-cash items
Depreciation of tangible fixed assets
10
(Gain)/loss on endowments, donations and investment property
Pension costs less contributions payable
(Increase)/Decrease in stocks
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
Contribution to College Fund
Loss on disposal of fixed assets
Adjustment for investing or financing activities
Investment income
Interest payable
Interest receivable
Investment costs
Net Cash Flow from Operating Activities
21. CASH FLOWS
CASH FLOWS FROM INVESTMENT ACTIVITIES
Non-current investment disposal
Inflation swap disposal
Investment income
Investment costs
Endowment funds invested
Payments made to acquire non-current assets
Net Cash Flow from Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES
Bank loans acquired:
Barclays loan interest paid (as restated)
Cambridge Colleges bond Issue interest paid
Pricoa loan interest paid
PIC loan interest paid
Net Cash Flow from Financing Activities		 30 Jun 21
Total
£000
44,967
1,674
(40,917)
(1,067)
(15)
1,169
136
213
-
(5,681)
2,607
-
1,686
4,772
39,790
-
5,681
(1,686)
(44,335)
(1,634)
(2,184)
(1,219)
(444)
(297)
(647)
(2,607)		 30 Jun 20
Total
£000
(8,643)
1,580
2,710
872
(12)
(1,050)
(54)
220
-
(6,226)
2,605
-
890
(7,108)
50,559
-
6,226
(890)
(56,244)
(2,233)
(2,580)
(1,217)
(444)
(297)
(648)
(2,606)

Page | 40

TRINITY HALL NOTES TO THE ACCOUNTS

22. ANALYSIS OF CASH AND BANK BALANCES

At the
beginning of
the year
£000
Bank overdrafts
-
Cash at bank and in hand
9,372
Net funds
9,372
FINANCIAL INSTRUMENTS
Financial assets
Financial assets at a fair value through Statement of Comprehensive income
Listed equity investments
Financial assets that are equity instruments measured at cost less impairment
Other equity investments
Financial assets that are debt instruments measured at amortised cost
Cash and cash equivalents
Other debtors
Financial liabilities
Financial liabilities measured at amortised cost
Loans
Trade creditors
CAPITAL COMMITMENTS
Capital commitments at 30 June 2021 are as follows:
Authorised and contracted
Authorised but not yet contracted		 Cash Flows
£000
-
(232)
(232)
Year Ended
30 Jun 21
£000
185,098
84,052
9,140
2,174
280,464
75,000
434
75,434
30 Jun 21
£000
403
2,100		 At the end
of the year
£000
-
9,140
9,140
Year Ended
30 Jun 20
£000
149,613
75,621
9,372
3,109
237,715
75,000
314
75,314
30 Jun 20
£000
-
-

23. FINANCIAL INSTRUMENTS

24. CAPITAL COMMITMENTS

25. LEASE OBLIGATIONS

As at 30 June 2021 the College had no commitments under non-cancellable operating leases.

26. PENSION SCHEMES

The College participates in two defined benefit pension schemes, the Universities Superannuation Scheme (USS) and the Cambridge Colleges Federated Pension Scheme (CCFPS) and two defined contribution schemes, the Cambridge Colleges Group Personal Pension Scheme (CCGPPS) and NEST. The total pension cost for the period was £737,000 (2020: £501,000).

Universities Superannuation Scheme

The total cost charged to the profit and loss account is £211,000 (2020: £203,000). This excludes any deficit recovery contributions. Deficit recovery contributions due within one year are a recovery of £35,000 (2020: recovery £245,000). At the financial year end the latest available complete actuarial valuation of the Retirement Income Builder section of the Scheme was at 31 March 2018 ("the valuation date"). This was carried out using the projected unit method. A valuation as at 31 March 2020 is underway but not yet complete.

Page | 41

TRINITY HALL NOTES TO THE ACCOUNTS

26. PENSION SCHEME (Continued)

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

The 2018 valuation was the fifth valuation for 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 £63.7 billion and the value of the scheme's technical provisions was £67.3 billion indicating a shortfall of £3.6 billion and a funding ratio of 95%.

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

Pension increases (CPI)

Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves, less 1.3% p.a.

Discount rate (forward rates) Years 1-10: CPI+0.14% reducing linearly to CPI-0.73% Years 11-20: CPI+2.52% reducing linearly to CPI +1.55% by year 21 Years 21+: CPI+1.55%

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

Mortality base table

2018 valuation Pre- retirement: 71% of AMC00 (duration 0) for males and 112% of AFC00 (duration 0) for females Post retirement: 97.6% of SAPS S1NMA "light" for males and 102.7% of RFV00 for females

Future improvements to mortality CMI_2017 with a smoothing parameter of 8.5 and a long term improvement rate of 1.8% pa for males and 1.6% pa for females

The current life expectancies on retirement at age 65 are:

2021 2020
valuation valuation
Males currently aged 65 24.6 24.4
Females currently aged 65 26.1 25.9
Males currently aged 45 26.6 26.3
Females currently aged 45 27.9 27.7

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

2021 2020
Discount rate 0.87% 1.45%
Pensionable salary growth 2.0% 4.20%

Cambridge Colleges Federated Pension Scheme

The College is a member of a multi-employer defined benefit scheme, the Cambridge Colleges Federated Pension Scheme, in the United Kingdom. The Scheme is a defined benefit final salary scheme that was originally set up, under an interim Trust Deed, on 19 July 1977 as a defined benefit scheme. The Scheme is deemed to be a registered pension scheme under the terms of Schedule 36 of the Finance Act 2004. The College's employees covered by the Scheme are contracted-out of the State Second Pension (S2P).

The College elected to change benefits for service from 1 April 2004 for all members by:

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TRINITY HALL NOTES TO THE ACCOUNTS

The major actuarial assumptions at the balance sheet date were:

26. PENSION SCHEME (Continued)

SION SCHEME (Continued)
30 Jun 2021 30 Jun 2020
Discount rate 1.80% 1.45%
Increase in salaries 3.10% 2.70%
RPI assumption 3.40% 3.10%
CPI assumption 2.60% 2.20%
Pension increases in payment (RPI Max 5% pa) 3.30% 3.00%
Pension increases in payment (CPI Max 2.5% pa) 1.95% 1.80%

The underlying mortality assumption is based upon the standard table known as S3PA on a year of birth usage with CMI_2019 future improvement factors and a long term rate of future improvement of 1.25% p.a, a standard smoothing factor (7.0) and no allowance for additional improvements (2019: S3PA with CMI_2018 future improvement factors and a long term future improvement rate of 1.25% p.a.). This results in the following life expectancies:

Employee Benefit Obligations

The amounts recognised in the balance sheet are as follows:

Present value of Scheme liabilities
Market value of Scheme assets
Net defined benefit asset/(liability)
The amounts recognised in profit or loss are as follows:
Current service cost
Administrative expenses
Interest on net defined benefit (asset)/liability
(Gain)/loss on plan changes
Total
Changes in the present value of the plan liabilities are as follows:
Present value of plan liabilities at beginning of period
Current service cost (including employee’s contributions)
Interest on plan liabilities
Actuarial losses/(gains)
Benefits paid
(Gain)/loss on plan changes
Present value of plan liabilities at end of period
Changes in the fair value of the plan are as follows:
Market value of plan assets at beginning of period
Interest on plan assets
Return on assets, less interest included in profit and loss
Contributions by College
Employee contributions
Benefits paid
Market value of plan at end of period		 30 Jun 21
£000
(20,601)
13,624
(6,977)
277
21
117
-
414
20,870
361
301
(345)
(586)
-
20,602
12,860
184
811
309
84
(625)
13,624		 30 Jun 20
£000
(20,870)
12,860
(8,010)
247
21
156
-
424
18,817
335
423
1,696
(401)
-
20,870
11,924
267
702
317
88
(439)
12,860

The major categories of plan assets as a percentage of total Scheme assets were:

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TRINITY HALL NOTES TO THE ACCOUNTS

26. PENSION SCHEME (Continued)

Equities and Hedge Funds
Bonds & Cash
Property
Total		 30 Jun 21
48%
42%
10%
100%		 30 Jun 20
49%
41%
10%
100%		 30 Jun 19
57%
34%
9%
100%		 30 Jun 18
64%
30%
6%
100%

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

Analysis of the re-measurement of the net defined liability recognised in Other Comprehensive Income (OCI) for the year ending 30 June 2021 (with comparative figures for the year ending 30 June 2020) are as follows:

Actual return less expected return on plan assets
Experience gains and losses arising on plan liabilities
Changes in assumptions underlying present value of plan liabilities
Actuarial gain/(loss) recognised in OCI		 30 Jun 21
811
125
202
1,138		 30 Jun 20
702
219
(1,931)
(1,011)

Movement in surplus/(deficit) during the year ending 30 June 2021 (with comparative figures for the year ending 30 June 2020):

Surplus/(deficit) in plan at beginning of year
Recognised in profit and loss
Contributions paid by the College
Actuarial gain/(loss) recognised in OCI
Surplus/(deficit) in plan at the end of the year		 30 Jun 21
(8,010)
(414)
309
1,138
(6,977)		 30 Jun 20
(6,892)
(424)
317
(1,011)
(8,010)

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 at 31 March 2017. This showed that the plan's assets were insufficient to cover the liabilities on the funding basis.

These deficit reduction contributions are incorporated into the plan's Schedule of Contributions dated 3 June 2018 and are as follows:

These payments are subject to review following the next funding valuation, due as at 31 March 2020

The total pension cost, after personal health insurance contributions, for the year ended 30 June 2021 (see note 9) was as follows:

USS: charged to I&E
CCFPS: charged to I&E
CCGPPS: Contributions
NEST: Contributions		 30 Jun 21
£000
176
414
125
22
737		 30 Jun 20
£000
(43)
424
96
24
501

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TRINITY HALL NOTES TO THE ACCOUNTS

27. PRINCIPAL SUBSIDIARY AND ASSOCIATED UNDERTAKINGS AND OTHER SIGNIFICANT INVESTMENTS The

College's investment in subsidiary undertakings represents 100% of the share capital of Aula Limited, Trinity Hall Residences (1) Limited, Aula Hospitality Limited, Aula America and Aula (2) Ltd all of which are incorporated in England except Aula America incorporated in Delaware.

The College's subsidiary company in Hong Kong, Trinity Hall (Hong Kong) Limited, a company limited by guarantee has not been consolidated. Trinity Hall (Hong Kong) Limited has been dissolved by deregistration effective 23 April 2021.

28. RELATED PARY TRANSACTIONS

Owing to the nature of the College’s operations and the composition of its Governing Body it is inevitable that transactions will take place with organisations in which a member of the Governing Body may have an interest. All transactions involving organisations in which a member of the Governing Body 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 Governing Body members and where any member of the College Governing Body 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. At the Balance Sheet date there were 70 members of the Governing Body. During the year the average number receiving remuneration was 64.

The salaries paid to Trustees in the year are summarised in the table below:

he salaries paid to Trustees in the year are summarised in the table below:
From To 2021 Number 2020 Number
£0 £10,000 39 36
£10,001 £20,000 10 9
£20,001 £30,000 2 5
£30,001 £40,000 1 1
£40,001 £50,000 1 2
£50,001 £60,000 4 3
£60,001 £70,000 2 3
£70,001 £80,000 0 1
£80,001 £90,000 2 1
£90,001 £100,000 2 2
£100,001 £110,000 1 0
£110,001 £120,000 0 0
£120,001 £130,000 0 0
£130,001 £140,000 0 0
Total 64 63

The total Trustee salaries were £1,262,674 for the year (2020: £1,286,423).

The trustees were also paid other taxable benefits (including employer National Insurance contributions and employer contributions to pensions) which totalled £270,147 for the year (2020: £349,595)

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.

In addition, the college has provided loans to its fellows as part of a Shared Equity Scheme. These amounts are included in debtors, £362,621 (2020: £423,774)

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TRINITY HALL NOTES TO THE ACCOUNTS

29. CONTINGENT LIABILITIES AND ASSETS

USS

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 college's expenditure is similarly not recognised.

30. POST BALANCE SHEET EVENT

USS Pension Scheme

Since the year end, following the completion of the 2020 actuarial valuation, a new deficit recovery plan has been agreed in respect of the USS pension scheme. A new Schedule of Contributions based on the 2020 actuarial valuation has been agreed, and become effective, post year end. This results in an increase of £785,678 in the provision for the obligation to fund the deficit on the USS pension which would instead be £1,209,326. As the Schedule of Contributions was not in place at the financial year end this adjustment will be reflected in the Financial Statements for the year ended 30 June 2022. If the Joint Negotiating Committee (JNC) recommended deed on benefit changes has not been executed by 28 February 2022 then a different schedule of contributions would become applicable. If this were to happen then there would be an increase of £1,497,274 in the provision for the obligation to fund the deficit on the USS pension which would instead be £1,920,922.

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