2021-06-30-accounts

ANNUAL REPORT AND ACCOUNTS

for the year ended 30 June 2021

JESUS COLLEGE, CAMBRIDGE

ANNUAL REPORT AND ACCOUNTS

for the year ended

30 June 2021

Contents

	Page Number
Fellows, Emeritus Fellows, Honorary Fellows, St Radegund Fellows	3
and Fellow Commoners
Corporate Governance	6
Officers, Council and Principal Professional Advisers	7
Financial and Operating Review	9
Statement of Internal Control	16
Responsibilities of the College Council	16
Independent Auditors’ Report	17
Statement of Principal Accounting Policies	21
Consolidated Statement of Comprehensive Income and Expenditure	28
Consolidated and College Balance Sheet	29
Statement of Changes in Reserves	30
Consolidated Cash Flow Statement	31
Notes to the Accounts	32

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JESUS COLLEGE CAMBRIDGE CB5 8BL

Visitor: The Bishop of Ely

Master: Ms S. Alleyne, O.B.E., F.R.A., F.R.S.A. President: Professor J.P.T. Clackson

The Fellows of the College (in order of election):

Professor P.H. Nolan, C.B.E. Professor I. Paterson, F.R.S. Professor M.L.S. Sørensen Dr G.T. Parks Dr R. Mengham Professor R. Cipolla, F.R.Eng. Dr S. Fennell Professor D.I. Wilson, C.Eng., Sc.D. Dr J.W. Ajioka Professor J.P.T. Clackson Professor M.R. Laven Dr T.S. Aidt Professor T.D. Wilkinson Dr V. Mottier Dr F. Green Professor I.H. White Professor J.A. Dowdeswell, Sc.D. Professor N.G. Berloff Professor S.M. Clarke Dr W. Federle Dr B. Walton Professor O.A. Scherman Dr R.E. Flemming Professor C.E. Chambers Professor J.J. Baumberg, F.R.S. Professor G.N. Wells Professor D.J. Kelly Dr C.M. Burlinson Professor B.M.B. Post Professor A.H. Brand, F.R.S. Dr M.J. Edwards Professor K.S. Lilley Professor C. Mascolo Professor C-B. Schoenlieb Dr R. Morieux Mrs A. Künzl-Snodgrass Dr R. Reich Dr F.G.F. Stark Dr S. Schnall Dr M. Condé Dr D.A. Cooper Dr T. Savin Professor S. Colvin Professor A. Vignoles, C.B.E., F.B.A. (Until 31 January 2021)

Dr S.V. Stinchcombe Professor V.P.M. Carvalho Professor K.A. Steemers Dr Y. Peleg Dr M. Harper Dr U. Schneider Dr C. Fenton-Glynn Dr D. Nally Dr S.R.L. Stacpoole Dr H. Williams Dr H. Taylor Professor E. Benvenisti, C.B.E. Professor P.J. Williamson Dr S. Dutton Dr J. Green Dr M. Elliott Dr J.L. Huppert Mr R. Pinel Dr R.F. Anthony Dr L. Tagliapietra (until 3 February 2021) Dr A.J. Grant Dr J.A. Linebaugh Dr J.L. Berenbeim Dr E.D. Robson Ms E. Williams Dr J. Bellingham Mr J. Grower Professor J. Danesh Dr R. Evans Dr E. Osorio Whewell Dr C. Eigen Mrs M. de Vincent-Humphreys Rev’d J. Crockford Dr J. Hirst Dr R. Barr Dr N. Guyatt Dr C. Cole (from 1 October 2020) Dr H. McCarthy (from 1 October 2020) Dr S. Marino (from 1 October 2020) Ms A. Goymour (from 1 October 2020) Dr M. Wilkinson (from 1 October 2020) Dr A.R Bowden (from 1 October 2020) Mr S. Websdale (from 15 February 2021)

Emeritus Fellows:

Dr C.J. Adkins, F.Inst.P. (until 17 July 2020) Dr J.A. Hudson Dr J.E. Roseblade

Dr W.C. Saslaw Mr P.R. Glazebrook, M.A. Professor J.T. Killen, F.B.A.

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Professor S.C. Heath, Litt.D. Professor P.D.A. Garnsey, F.B.A. Dr S.B. Hladky Dr D.E. Hanke Dr M.R. Minden Mr N.J. Ray, M.A., A.R.I.B.A. Professor J.B.Thompson Professor J.R. Howlett Dr G.C. Harcourt, A.O., A.C., Litt.D., F.A.S.S.A., F.Ac.S.S. Professor W.J. Stronge Dr R.D. Bowers Professor Lord Renfrew of Kaimsthorn, Sc.D., Hon.D.Lit., F.B.A. (Honorary Fellow) Professor R. Freeman, Sc.D., F.R.S. Dr M.P.C. Oldham Professor J.M. Soskice

Professor D.A.S. Compston, C.B.E., F.R.C.P., F.R.S. Revd Dr T.D. Jenkins Professor M.M. Arnot, F.R.S.A., F.Ac.S.S. Professor J.R. Crawford, S.C., F.B.A., A.C. (Honorary Fellow) (until 31 May 2021) Professor Sir Bruce Ponder, F.R.C.P., F.R.S. Dr A.J. Bowen Professor J.C.W. Mitchell, F.B.A. Professor S.A.T. Redfern Professor J.M. Bacon, Hon.D.Univ Mr S.J. Barton, M.A. Professor Lord Mair, C.B.E., F.R.Eng., F.R.S. (Honorary Fellow) Professor H. le B. Skaer Mr R.J.P. Dennis, M.A.

Honorary Fellows:

Sir Samuel Brittan, M.A., Hon.D.Litt. (until 12 October 2020) Hon. A.R. Gubbay, M.A., LL.M., Hon.LL.D. Lord Renwick of Clifton, M.A., Hon.LL.D., Hon.D.Litt., F.R.S.A. Lord Rees of Ludlow, O.M., M.A., Hon.Sc.D., F.R.S. Professor R.F. Tuck, M.A., F.B.A. Professor Dame Sandra Dawson, D.B.E., M.A., Hon.D.Sc., F.I.P.H., F.C.G.I., C.I.M. Sir David Hare, M.A., Hon.Litt.D., F.R.S.L. Mr A.M.D. Gormley, O.B.E., M.A., Hon.Litt.D. Reverend Professor Sir Bernard Silverman, M.A., Sc.D., F.R.S. Lord Watson of Richmond, C.B.E., M.A., F.R.T.S. Professor Lord Renfrew of Kaimsthorn, Sc.D., Hon.D.Lit., F.B.A. (Emeritus Fellow) Mr M. Perahia, F.R.C.M. Professor K. E. Wrightson, M.A., F.R.Hist.S., F.B.A. Professor E.S. Maskin, Hon.Sc.D., F.B.A. The Rt Hon Sir Rupert Jackson, P.C., M.A., LL.B. Professor T.F. Eagleton, M.A., F.B.A. Mr J.A. O’Donnell, M.A., K.C.S.G., F.R.C.O., F.R.S.C.M., F.G.C.M., F.R.C.M.

The Rt Hon Sir Colman Treacy, P.C., M.A. Sir David Wootton, M.A. Sir Richard Long, C.B.E., R.A. Professor J.R. Crawford, S.C., F.B.A., A.C. (Emeritus Fellow) (until 31 May 2021) Professor R.J.W. Evans, Hon.Litt.D., F.B.A., F.L.S.W. Sir Jonathan Ive, C.B.E., Hon.Sc.D. The Rt Hon Sir Stephen Irwin, P.C., M.A. Sir Alan Fersht, Ph.D., F.R.S. Professor Lord Mair, C.B.E., F.R.Eng., F.R.S. (Emeritus Fellow) Dr B.J. Wilkes, F.R.A.S. Ms A. Wilding, R.A. Professor R.L. Gilchrist, M.C.If.A, F.S.A., F.B.A. Professor M.M. McCabe F.B.A. (from 2 October 2020) Professor A. Bashford F.A.H.A. F.B.A. (from 2 October 2020) Mr D. Murray (from 2 October 2020) Professor V. Shepherd (from 2 October 2020) Ms F. Morris MA (from 26 October 2020) Professor S. Rutherford (from 26 October 2020)

St Radegund Fellows:

Mr J.W. Hudleston Mr R. P-L. Kwok, M.A. Mr P.J.S. Yates, M.A. Mrs S.J. Yates, M.A. Mr B.N. Buckley Ms J. Sainsbury, M.A.

Professor P. Frankopan, M.A. Dr L. Rausing Professor P. Baldwin Mr G.F Hart Mr R.F. Davies, M.A

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Fellow Commoners:

Mr J. Cornwell, M.A. Professor B.A.K. Rider, O.B.E., Hon.LLD. Dr S.S. Saxena

Dr P. Taneja (until 30 September 2020) Rev’d Dr J. Leach Dr J. Filling

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Corporate Governance

1. The following statement is provided by the Trustees (Council) to enable readers of the financial statements to obtain a better understanding of the arrangements in the College for the management of its resources and for audit.

2. The College is a registered charity (registered number 1137462) and subject to regulation by the Charity Commission for England and Wales. The members of Council are the charity trustees and are responsible for ensuring compliance with charity law.

3. The Trustees are the Council which is advised in carrying out its duties by a number of Committees. These include the Bursarial Committee, Investment Committees (Financial and Property), Education Board, Development Committee, Buildings Committee and Staff Committee.

4. It is the duty of the Bursarial Committee to keep under review the effectiveness of the College’s internal systems of financial and other controls; to advise the Trustees (Council) on the appointment of external auditors; to consider reports submitted by the auditors, both external and internal; to monitor the implementation of recommendations made by the auditors; to make an annual report to the Trustees (Council).

5. There is a Register of Interests of Trustees (Members of the Council). Declarations of interest are made systematically at meetings.

6. The College’s Trustees (Members of the Council) during the year ended 30 June 2021 are set out on page 7.

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Officers, Council and Principal Professional Advisers

Master: Ms S Alleyne OBE FRA FRSA President: Professor J.P.T. Clackson Senior Tutor: Dr G.T. Parks Bursar: Dr R.F. Anthony Domestic Bursar: Mr S. Websdale

Council

Ms S Alleyne, Master Professor J.P.T. Clackson, President Dr G.T. Parks, Senior Tutor Dr R.F. Anthony, Bursar Professor I. Wilson Professor K. Steemers Dr D. Nally Dr S. Fennell Dr Y. Peleg Professor B.M.B. Post Professor C. Schoenlieb Professor H. Skaer Professor P. Nolan Dr J.L. Huppert Ms E. Williams Mrs A. Künzl-Snodgrass Professor T.D. Wilkinson Professor P.J. Williamson Dr J. Green Dr F. Green Mr A. Petrucci, J.C.S.U President Mr. J Powell, J.C.S.U President Ms M. Olver, J.C.S.U. Mr Z. Coleman, J.C.S.U. Mr J. Shaugnessy, MCR President Mr L. Ramirez-Garcia, MCR President Mr J. Perlo, MCR. Mr C. Magnus von Behr, MCR.

(from 1 October 2020) (from 1 October 2020) (from 1 October 2020) (from 1 October 2020)

(until 30 September 2020) (until 30 September 2020) (until 30 September 2020) (until 30 September 2020) (until Michaelmas 2020) (from Lent 2021) (until Michaelmas 2020) (from Lent 2021) (until 30 September 2020) (from Michaelmas 2020) (until 22 November 2020) (from 23 November 2020)

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Auditors:

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

Financial Advisers: Cazenove Capital 1 London Wall Place London EC2Y 5AU

Pension Scheme Actuaries: Mercer (a wholly owned subsidiary of Marsh & McLennan Companies) (for Phoenix Life Ltd) 1[st] Floor, Rosemoor Court Pynes Hill Exeter EX2 5TU

Bankers:

Lloyds Bank, Wholesale Banking & Markets East Anglia & South Midlands Endeavour House, Chivers Way Histon, Cambridge CB24 9ZR

Financial Advisers: Cambridge University Endowment Fund Bateman House 1[st ] Floor, 82-88 Hills Road Cambridge CB2 1LQ

Insurance Brokers: Aon UK Ltd The Aon Centre The Leadenhall Building 122 Leadenhall Street London EC3V 4AN

Property Managers (Agricultural & Commercial): Bidwells LLP Trumpington Road Cambridge CB2 2LD

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Financial and Operating Review

Introduction

Jesus College was founded in 1496 when it was granted its Royal Charter. The College is an autonomous, self-governing community of scholars, one of the 31 colleges within the University of Cambridge. Jesus College admits students to study for all degrees at the University. In 2020-21 there were 538 undergraduate and 416 postgraduate students at the College. For the purposes of the Oxford and Cambridge Act 1923 the governing body is the Society, consisting of the Master and 86 Fellows, who are mostly academics holding teaching and research posts at the University and the College. The College Council has control and management of the affairs of the College and its members are the Charity Trustees.

Aims and objectives of the College

The College’s charitable objectives are to establish a college within the University of Cambridge for the advancement of education, learning, research and religion.

Public Benefit

The College provides, in conjunction with the University of Cambridge, an education for undergraduate and postgraduate students, which is recognised internationally as being of the highest standard. This education develops students academically and advances their leadership qualities and interpersonal skills, and so prepares them to play full and effective roles in society. The College maintains teaching, library and study facilities in support of these activities.

The College admits as students those who have the highest potential for benefiting 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. The College provides financial support to its students through scholarships, awards and prizes to fund fees, maintenance, research, and travel costs. It contributes, together with the University and the other Cambridge Colleges, to the Cambridge Bursary scheme, which is the primary mechanism of financial support for undergraduates to study at Cambridge, and to the Vice Chancellor’s Awards and the Cambridge UK Masters Scholarships to support postgraduates. The College also funds a number of undergraduate and postgraduate scholarships, details of which can be found on the College’s website.

In terms of broader educational opportunities, the College, with the assistance of the JCSU and MCR and with the support of the Jesus College Boat Club Trust, funds and provides for a wide range of activities, including sports, music, theatre and other cultural activities.

The College advances research through:

• Providing stipendiary Research Fellowships in the humanities and sciences to outstanding academics at the early stages of their careers, which enable them to develop and focus on their research.

• Supporting research work pursued by its Fellows financially and through promoting interaction across disciplines.

• Encouraging visits from outstanding academics from across the world in all disciplines.

The work of the Intellectual Forum and the Jesus College Perspectives is aimed at bringing together academic research with experts from industry, governments and not-for-profit organisations to address key contemporary issues. The Global Issues Dialogue Centre (GIDC), the China Centre and the Cambridge Central Asia Forum are interdisciplinary centres which examine issues that impact on overseas national and regional areas, particularly in relation

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to China, and Central Asia and the Caucasus, organising a range of events and initiatives, and in the case of the GIDC, undertaking research.

The College provides support to a range of musical activities, in particular through the College and Chapel Choirs. The College employs a full-time Director of Music, and each year awards a number of Choral and Organ scholarships. In addition, it offers places in the Chapel Choir for younger choristers from the Cambridge area.

The College advances religion primarily through its Chapel, which has been in continuous use since before the College’s foundation. Regular services are held, which are open to the public. The College employs the Dean of Chapel, who is an Anglican priest, and who provides for wider spiritual and pastoral care for the students, staff and Fellows.

The College provides accommodation and catering services to many of its members, and which it regards as an essential part of developing and maintaining a collegiate community.

Funding

The College levies fees and charges for the following:

• To undergraduates at externally regulated rates for those Home/EU students who are eligible for public support, and to other undergraduates to contribute towards the cost of their education.

• To postgraduate students to contribute towards the cost of their education

• For accommodation and meals at subsidised rates

The fees and charges made to students are significantly below the full economic cost of providing the education, accommodation, meals and other services. These subsidies are funded through:

• The provision of the College’s accommodation, catering and other facilities for external conferencing activities, which are charged at commercial rates.

• The return from the College’s endowment assets.

• Donations from the College’s alumni and supporters.

Achievements

The most significant achievement has been the College’s ability to maintain educational, accommodation and catering services during the pandemic. The move of teaching and admissions online, the support available to students who continued to be resident in college and who often had to self-isolate, and the continued provision of catering, including during the lockdown periods, are just a few examples of this. The financial strength of the College, particularly through its endowment and the support of its donors, are key factors in enabling the College to do so during such a difficult time.

Despite the impact of the pandemic, the College made good progress on its major Kitchen project. The first stage of which is the redevelopment of the Forum buildings (formerly part of Marshalls garage) into high-quality catering and conferencing buildings, and was completed in September 2020 in time for the start of the academic year. The College’s catering services transferred to the Forum, which is an excellent example of repurposing an older building, and the College reduced its carbon footprint by switching to an all-electric kitchen. The College’s historic dining hall and kitchen have been closed where works have started on the main part of the project, which has included extensive archaeological investigations in the old kitchen and Pump Court.

In June 2020, the College launched its Responsible Investment Policy, which states clear targets for the transitioning the College’s endowment to a net zero-carbon economy. Alongside this was the adoption of a Sustainability Strategy, which sets out how the College will reduce its carbon footprint and improve its environmental performance in relations to its operations over the next decade. As a result, the College is a leader amongst its peers in

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environmental initiatives and recognises the example that it can provide in responding to the climate crisis.

The College remains a highly popular college for applicants, especially undergraduate. The College continues to see a rising number of undergraduate applicants, offers and entrants from state-educated and disadvantaged backgrounds.

The multiple achievements of the College members are listed extensively in the College’s - Annual Report, which is available at https://www.jesus.cam.ac.uk/alumni/college publications.

Financial Review

Income and Expenditure

Income from the College’s unrestricted activities fell by 19%, while expenditure decreased by 4%. As a result, the operating shortfall increased significantly to £5.6m. Endowment and donations income was 9% lower. As a consequence the surplus fell:

Unrestricted Income & Expenditure		2020-21 £’000	2020-21 £’000		2019-20 £’000	2019-20 £’000
Total Operating Income Total Expenditure Operating shortfall Endowment income and donations		8,670 (14,294) (5,624) 6,165			10,757 (14,839) (4,082) 5,644
Surplus			541			1,562

The surplus would have been £0.3m higher if the impact of a pension accounting charge is excluded. This is a non-cash item that does not reflect the operational activities of the College or an actuarial valuation of USS. The College also benefitted from £0.8m in grants from the Coronavirus Job Retention Scheme. If the impact of these two items is excluded, then the underlying surplus would be zero.

Operating Income

The College’s operating income consists primarily of its academic fees, student rents and catering and conferencing receipts. The decrease was caused by coronavirus, which resulted in significant reductions in accommodation, catering and conferencing income:

• Fee income increased by 3%, as a result of increased student numbers;

• Student rent income increased by 3%, due to many students staying in College during the lockdowns. However, restrictions in services caused by the pandemic resulted in College catering income falling by 38%;

• Conferencing income declined massively by 89%;

• Other income increased from £0.7m to £0.9m, and was nearly all made up of furlough grants.

Operating expenditure

Operating expenditure fell by 5%, principally due to the impact of reduced activity in conferencing and catering.

Education

The College ran a deficit of £2.9m on its educational account as fee income is significantly below the costs of admitting, teaching and supporting students. This also includes the cost of supporting research, which accounts for £0.9m of costs. The deficit is only sustainable through funding from donations and endowment income.

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Accommodation, Conferencing and Catering

Income fell significantly from £6.2m to £3.6m demonstrating the very substantial impact of coronavirus. Costs only fell slightly as these are relatively fixed, notably staff and buildings. Having come close to eliminating the deficit on these activities in 2018-19, it has increased further from £1.8m to £3.6m. The College did furlough a large number of staff in these areas, with the benefit being disclosed as Other Income (see above).

Payroll costs, which are the largest element of the College’s expenditure, increased to 45% of total expenditure.

Operating Shortfall

The Operating Shortfall measures the excess of College costs over Operating Income. The financial pressure on the College in terms of its core educational, accommodation and catering activities means that the College is reliant on the support of donations, its conferencing business and its endowment income to enable it to generate a surplus. The income from endowment ensures that the College is able to keep pace with the growing demands placed upon it. However, during this year, the coronavirus pandemic significantly impacted the contribution from conferencing.

Investment Performance

The College’s investment portfolio produced a total return of 15.4% (2019-20: 2.2%) during the year. The capital value increased from £182m to £211m, comprising the College’s financial assets (£109.2m) and property (£101.4m). The overall performance was significantly above that of the long-run target return of CPI+5% (7.6%). The financial portfolio saw a substantial uplift across the year, reflecting the rise in most global public markets. The return for the year was 20.1%. The College’s financial investments are managed by the Cambridge University Endowment Fund and Cazenove Capital. Whilst coronavirus affected the rental receipts from some property sectors such as retail, leisure and education, the College saw substantial rises in the value of its residential and commercial ground lease properties. The College also sold an industrial property in Leeds and a parcel of land in Cambridge at prices significantly above their historic valuations. As a result the capital value increased 7.7%, which, with an income return of 3.4%, resulted in an overall return of 11.1%.

The College is advised on its investments by two committees, the Financial Investment Committee and the Property Investment Committee, with the majority of the membership consisting of external experts.

Investment Costs

The costs of managing the College’s endowment are charged directly to the endowment and do not form part of the Operating Income and Expenditure calculations.

Investment costs for the financial portfolio were £0.2m ( 2019-20, £0.2m ).

Investment costs for the property portfolio (Land and building) are a mixture of agency fees, buildings repair costs, and additions/disposals costs. The total was £0.9m ( 2019-20: £0.8m ), and includes a bad debt provision of £0.1m in relation to rents. Costs associated with property development activities are included under ‘Other investments’, which increased from £0.5m to £0.8m, reflecting work in relation to submissions to the Greater Cambridge Local Plan Review.

Capital Expenditure

The total capital expenditure on fixed assets in the year was £5.1m (2019-20: £4.7m). The majority of which comprised the costs for the major Kitchen redevelopment project, together

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with the redevelopment of the Forum buildings into catering and conferencing facilities (completed in September 2020).

Balance Sheet and Reserves

Net College assets increased from £345m to £373m, driven by the very significant growth in investment assets.

Long-term creditors represent unsecured bank loans and bonds. In October 2018 the College undertook a private placement transaction consisting of two tranches of bonds, £20m each, repayable in 2058 and 2068 and with fixed interest rates of 2.63% and 2.65% respectively, with the drawdown of the 2068 tranche occurring in October 2020. The College also has a £20m bank loan repayable in 2039 with an interest rate fixed, for the most part, at 4.6%.

Restricted reserves increased by £27m to £236m, whilst Unrestricted reserves increased by £1m to £137m. The College’s reserves movements are primarily driven by changes to the value of its investment assets. The Restricted reserves are primarily made up of the College’s permanent endowment and are therefore significantly affected by the movement in the investment values. The Unrestricted reserves benefitted from the surplus on the income and expenditure account, enhanced by an actuarial gain on the College’s defined benefit pension scheme. The College is committed to a steady long-term increase in its financial resources to ensure that it can continue to meets the needs of its members in the future, and it has adopted a policy of maintaining the value of its reserves in real terms over the long term. This is consistent with a charity with the history and position of the College that has met the needs of its members over many centuries.

Staff and Pensions

Academic and non-academic staff numbers fell, the latter due to the pandemic. Payroll costs during the year were broadly the same, but were affected by an increase in pension provisions, without which there would have been a decrease in staff costs. The College’s defined benefit pension scheme for non-academic staff, the Jesus College Cambridge Pension Scheme (JCCPS), which is closed to new members, incurred a net charge of £0.2m, and the position also slightly worsened for USS, which is for its fellows and academic staff, where the liability increased by £0.1m. It should be noted that the basis on which these numbers are calculated is very different for the two schemes, with all the movement in the provision for USS being included in payroll costs. As a result, £0.3m charge was accounted for through the payroll costs for both the JCCPS and USS, reducing the income and expenditure surplus for the year. A separate £0.3m actuarial gain was included as income in Other Comprehensive Income solely in relation to the JCCPS. All of these movements are non-cash adjustments.

The positive net asset position of the JCCPS of £2m arises from a long-term with-profit contract with a life assurance company, and explains why the scheme has remained consistently in surplus. With regard to USS, the provision is not calculated on an actuarial basis, but represents the discounted cost of future deficit recovery payments. The current year charge is specifically a result of movements in the discounted value of the deficit recovery contribution rate in the 2018 valuation, which is the valuation that applied at the year end. This calculation bears no relation to the overall liabilities of USS, where the College has an unspecified contingent liability, due to the multi-employer, ‘last-man standing’ nature of the scheme.

Fundraising

Participation in the Jesus College Annual Fund is 14% (1,311 alumni). Donations were significantly up at £4.1m ( 2019-20: £1.1m ). Fundraising costs during the year amounted to £0.2m.

The College’s fundraising is focused on its alumni and supporters, who have established connections with the College. The College does not use external fundraisers. Fundraising and

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alumni relations are the responsibility of the College’s Director of Development & Alumni Relations, who is a Fellow and who reports to the Development Committee and the College Council. The College is registered with the Fundraising Regulator and complies with the Code of Fundraising Practice.

Coronavirus

From March 2020 onwards, the coronavirus pandemic has had a substantial impact on the operations and finances of the College, which has continued throughout 2020-21:

• Most students returned in the Michaelmas Term, with a significant number returning during the Lent Term, and most back in the Easter Term.

• The various stages of restrictions and multiple lockdowns severely disrupted the College’s catering services.

• The conferencing business, which had been growing in recent years following the opening of West Court, had ceased by the summer of 2020. There was some business in the second half of the year, but it was limited to accommodation.

• The College furloughed a significant number of staff during the lockdowns, benefitting from the support available from the Coronavirus Job Retention Scheme.

• The College’s directly-held property portfolio has some exposure to retail, leisure and education tenants in Cambridge, where rental collection was deferred, and in some cases, write-offs were agreed on a case-by-case basis.

The College, through the Bursarial Committee, did taken action to reduce its costs. However, there were significant additional coronavirus-related costs in relation to supporting and accommodating students and making changes to the way the College operates. Whilst there is some uncertainty as regards the timing and nature of the recovery of the conferencing business, the Bursarial Committee has reviewed the College’s longer-term financial position under a number of scenarios and is confident that the College will be able to maintain its core charitable activities in the future.

Principal risks and uncertainties

The major risks to which the College is exposed are assessed by the responsible College departments and Committees reporting to the Council, using a College Risk Register, which is reviewed each Lent Term.

The most significant short term risk facing the College relates to the ongoing impact of coronavirus, particularly on the College’s conferencing business. Students have returned to the College for Michaelmas Term 2021, and while most activities are operating normally, there remains uncertainty concerning the future impact of the pandemic. In addition, there remains the uncertainty associated with Brexit, where there is evidence of some disruption to higher education and to supply chains. There is also considerable uncertainty relating to the future of pensions provided by the USS, where the scheme trustees are in the process of completing a valuation, the proposals from which result in a reduction in member benefits and the requirement for additional commitment and support from employers.

Although the College’s investments have performed exceptional and unexpectedly well during the year, concerns remain about the volatility of the global economy as a result of coronavirus, and in relation to the impact of Brexit on the UK economy. The diversified nature of the College’s endowment helps to mitigate risks associated with the return from its investments, which are managed on a long-term total return basis. The College’s property portfolio is heavily focused on the Cambridge region, which has substantial development potential and has been of financial benefit given the sustained long-term growth of the Cambridge economy. The College’s debt exposure is managed through long-term loans and bonds at fixed interest rates.

The long-term performance of the College is very closely linked to that of the University and the other Cambridge colleges.

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The Future

The College has coped well with the unprecedented challenge of coronavirus, which has had a major impact on the provision of higher education and on the College’s conferencing business. The longer term impact of coronavirus on the wider economy and society and on the College’s members remains unclear. The College has responded to the challenge of climate change, and will continue to play a lead in the collegiate University. The position of USS, which the College is exposed to with its small membership, but relatively large asset base, is of ongoing concern, although there are positive moves towards a medium-term reform of the scheme. With a continuing deficit on its core educational activities, and an increased deficit on its accommodation, catering and conferencing account, it is important that the College strengthens its financial position to meet these challenges, which it can do so by increasing donations, recovering its conferencing business, and protecting and growing its endowment.

The College remains in robust financial health, and it is important that careful financial management is continued in order to maintain this position.

On behalf of the College Council:

Ms S. Alleyne Dr R.F. Anthony

Sonita Alleyne OBE Master

Dr Richard Anthony Bursar

8 November 2021

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Statement of Internal Control

1. The Council is responsible for maintaining a sound system of internal control that supports the achievement of policy, aims, and objectives while safeguarding the public and other funds and assets for which the Governing Body is responsible, in accordance with the College’s Statutes.

2. The system of internal control is designed to manage rather than eliminate the risk of failure to achieve policies, aims, and objectives; it therefore provides reasonable but not absolute assurance of effectiveness.

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

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

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

Responsibilities of the College Council

The Council is responsible for preparing the Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the College will continue in operation.

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

The Council is responsible for the maintenance and integrity of the corporate and financial information included on the College’s website.

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Independent auditors’ report to the Governing Body of Jesus College, Cambridge

Opinion

We have audited the financial statements of Jesus College (the ‘College) for the year ended 30 June 2021 which comprise the Statement of Comprehensive Income and Expenditure, the Statement of Changes in Reserves, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the College’s affairs as at 30 June 2021 and of its incoming resources and application of resources for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011 and the Statutes of the University of Cambridge.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The Trustees 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

17

misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Statutes of the University of Cambridge

In our opinion based on the work undertaken in the course of the audit:

• The contribution due from the College to the University has been computed as advised in the provisional assessment by the University of Cambridge and in accordance with the provisions of Statute G,II, of the University of Cambridge.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the College and its environment obtained in the course of the audit, we have not identified material misstatements in the Financial and Operating 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:

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of the College Council

As explained more fully in the responsibilities of the College Council statement set out on page 15, the College Council are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the College Council determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors’ responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the College through discussions with Trustees and other management, and from our knowledge and experience of the education sector;

• we obtained an understanding of the legal and regulatory framework applicable to the College and how the College is complying with that framework;

• we identified which laws and regulations were significant in the context of the College. The Laws and regulations we considered in this context were Charities Act 2011, the Statutes of the University of Cambridge and taxation legislation. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items;

• in addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the College’s and the Group’s ability to operate or to avoid material penalty; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policy were indicative of potential bias; and

• • investigated the rationale behind significant or unusual transactions.

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

• agreeing financial statement disclosures to underlying supporting documentation;

• reviewing minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims; and

• • reviewing correspondence with relevant regulators and the College’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify 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.

Use of our report

This report is made solely to the College’s Council as a body, in accordance with College’s statutes, the Statutes of the University of Cambridge and the Charities Act 2011. Our work has been

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undertaken 50 that we might state to the Council those wnatters we are required to state to them in an Auditors, Report and for no other purpose. To the fullest extent pemiitted by law, we do not accept or assume responsibility to anyone other than the College and the College's Council as a L￿. for our audit work. for thi5 report, or for the opinion5 we have formed. Petsrs tL(sxr¥ . fvlocre PETERS ELWORTHY & MOORE Chartered Accountants and Statutory Auditor5 Salisbury House Station Road Cambridge CBI 2LA Date: q 2911 Peters Elworthy & Moore Is ellglble to act as an audltor In tenys of sectlon 1212 of the Companles Act 2￿6. 20

Statement of Principal Accounting Policies

Basis of preparation

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

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

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

Going Concern

In light of the global COVID-19 pandemic, the trustees have specifically considered the impact of the pandemic, including the extent to which the College has and will continue to experience disruption in its activities. The College has undertaken additional budgeting, forecasting and cash flow planning which is reviewed and monitored by the Bursarial Committee and Council. As such, the trustees believe the going concern basis remains appropriate.

Basis of accounting

The financial statements have been prepared under the historical cost convention, modified in respect of the treatment of investments which is 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 26. Intra-group balances are eliminated on consolidation.

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

Grant income

Grants received from non-government sources (including research grants from non-government sources) are recognised within the Consolidated Statement of Comprehensive Income and Expenditure when the College is entitled to the income and performance related conditions have been met.

Income received in advance of performance related conditions is deferred on the balance sheet and released to the Consolidated Statement of Comprehensive Income and Expenditure in line with such conditions being met.

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 Consolidated 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.

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

1. Restricted donations – the donor has specified that the donation must be used for a particular objective.

2. Unrestricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream for the general benefit of the College.

3. Restricted expendable endowments – the donor has specified a particular objective and the College can convert the donated sum into income.

4. Restricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream to be applied to a particular objective.

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

Investment income and change in value of investment assets

Investment income and change in value of investment assets is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms or other restrictions applied to the individual endowment fund.

Total return

The College invests its endowment investment portfolio and allocates a proportion of the related earnings and capital appreciation to the statement of comprehensive income and expenditure in accordance with the total return concept. The allocation to income is determined by a spending rule which is designed to stabilise annual spending levels and to preserve the real value of the endowment portfolio over time. The income transferred to the income and expenditure account on this total return basis is calculated at 4% of the weighted average value of the College’s investment portfolio over a five year period up to the commencement of the current accounting 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 has been 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 £173,352 (£171,502) is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows:

2020-21 2019-20 Income £187,352 £157,763 Expenditure £360,704 £329,265

Foreign currency translation

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

Fixed assets

Land and buildings

Fixed assets are stated at deemed cost less accumulated depreciation and accumulated impairment losses. Certain items of fixed assets that had been revalued to fair value on or prior to the date of

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transition to SORP, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.

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

Costs incurred in relation to land and buildings after initial purchase or construction, and prior to valuation, are capitalised to the extent that they increase the expected future benefits to the College.

Freehold land is not depreciated as it is considered to have an indefinite useful life. Freehold buildings are depreciated on a straight line basis over their expected useful lives as follows:

External Structures 200 years Internal Structures 50 years

Those freehold buildings that are houses off the main site are not depreciated and are subject to an annual impairment review. Transfers of properties from investment property to fixed assets are recorded at their current market value.

Leasehold land is depreciated over the life of the lease up to a maximum of 50 years.

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

Land held specifically for development, investment and subsequent sale is included in current assets at the lower of cost and net realisable value.

The cost of additions to operational property shown in the balance sheet includes the cost of land. Furniture, fittings and equipment costing less than £10,000 per individual item or group of related items is written off in the year of acquisition. All other assets are capitalised and depreciated over their expected useful life as follows:

Furniture and fittings 10% per annum Motor vehicles and general equipment 20% per annum Computer equipment 33% per annum.

Leased assets

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

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

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

Heritage assets

The College holds and conserves a number of collections, exhibits, artefacts and other assets of historical, artistic or scientific importance. Heritage assets acquired before 1999 have not been capitalised since reliable estimates of cost or value are not available on a cost-benefit basis. Acquisitions since 1999 have been capitalised at cost or, in the case of donated assets, at expert

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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.

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.

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.

Contingent liabilities and assets

A contingent liability arises from a past event that gives the College a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events, not wholly within the control of the College. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.

A contingent asset arises where an event has taken place that gives the College a possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the College.

Contingent assets and liabilities are not recognised in the balance sheet but are disclosed in the notes.

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.

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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.

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

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

Taxation

The College is a registered charity (number 1137462) 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 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.

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Pension costs

Pensions are detailed in note 31 to the accounts.

Employment benefits

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

Reserves

Reserves are allocated between restricted and unrestricted reserves. Endowment reserves include balances which, in respect of endowment to the College, are held as permanent funds, which the College must hold to perpetuity.

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

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 8.

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 were revalued to their fair value at the reporting date by 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 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 31.

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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 2028. These contributions will be reassessed within each triennial valuation of the scheme. The provision is based on management’s estimate of expected future salary inflation, changes in staff numbers and the prevailing rate of discount. Further details are set out in note 31.

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Jesus College

Consolidated Statement of Comprehensive Income and Expenditure

Year Ended 30 June 2021

Unrestricted Restricted 2021 2021 £ £ Income Note Academic fees and charges 1 3,939,104 - Accommodation, catering and conferences 2 3,856,874 - Investment Income 3 119,119 - Endowment Return Transferred 3 5,301,868 1,471,268 Other income 873,702 - Total Income before Donations and Endowments 14,090,667 1,471,268 Donations 744,683 581,080 New Endowments - - Other Capital Grants for Assets - 69,968 Total Donations and Endowments 744,683 651,048 Total Income 14,835,350 2,122,316 Expenditure Education 4 6,069,015 753,346 Accommodation, catering & conferences 5 7,442,805 - Other expenditure 694,228 345,686 Contribution under Statute G II 88,000 - Total expenditure 6 14,294,048 1,099,032 Surplus before other gains and losses 541,302 1,023,284 Gain on Investments 3b - - Surplus for the year 541,302 1,023,284 Other Comprehensive Income Actuarial Gain in respect of Pension Schemes 15 248,000 - Total Comprehensive Income for the year 789,302 1,023,284 All items dealt with in arriving at the surplus for 2021 and 2020 relate to continuing operations.	Endowment 2021 £ - - 6,467,136 (6,773,136) - (306,000) - 2,698,547 - 2,698,547 2,392,547 - - - - - 2,392,547 23,917,251 26,309,798 - 26,309,798	Total 2021 £ 3,939,104 3,856,874 6,586,255 - 873,702 15,255,935 1,325,763 2,698,547 69,968 4,094,278 19,350,213 6,822,361 7,442,805 1,039,914 88,000 15,393,080 3,957,133 23,917,251 27,874,384 248,000 28,122,384	As Restated Unrestricted 2020 £ 3,840,748 6,176,215 107,353 5,037,040 740,104 15,901,460 499,208 - - 499,208 16,400,668 6,319,804 8,196,343 235,429 87,000 14,838,576 1,562,092 - 1,562,092 906,000 2,468,092	Restricted 2020 £ - - - 1,337,080 - 1,337,080 - - 98,609 98,609 1,435,689 805,191 - 380,415 - 1,185,606 250,083 - 250,083 - 250,083	Endowment 2020 £ - - 6,676,725 (6,374,120) - 302,605 - 495,575 - 495,575 798,180 - - - - - 798,180 (3,897,659) (3,099,479) - (3,099,479)	As Restated Total 2020 £ 3,840,748 6,176,215 6,784,078 - 740,104
						17,541,145
						499,208 495,575 98,609 1,093,392 18,634,537
						7,124,995 8,196,343 615,844 87,000
						16,024,182
						2,610,355
						(3,897,659)
						(1,287,304)
						906,000
						(381,304)

The notes on pages 32 to 50 form part of these accounts.

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Jesus College

Consolidated and College Balance Sheet as at 30 June 2021

Note Non-current assets Tangible assets 8 Heritage assets 8 Investments 9 Total Non-Current Assets Current assets Stocks 10 Trade and other Receivables 11 Cash and Cash Equivalents 12 Total current assets Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 14 Provisions Pension Provisions 15 Total Net Assets Restricted Reserves Income and Expenditure Reserve - Endowment Reserve Income and Expenditure Reserve - Restricted Reserve Total Restricted Reserves Unrestricted Reserves Income and Expenditure Reserve - Unrestricted Total Unrestricted Reserves Total Reserves 16 17	Consolidated 2021 £ 196,937,332 526,135 210,585,494 408,048,961 1,349,939 1,621,320 23,992,486 26,963,745 (3,231,882) 23,731,863 431,780,824 (60,000,000) 1,458,581 373,239,405 235,519,839 137,719,566 373,239,405 137,719,566 1,552,465 233,967,374	College 2021 £ 196,929,833 526,135 210,585,494 408,041,462 264,296 2,984,745 23,596,267 26,845,308 (3,105,946) 23,739,362 431,780,824 (60,000,000) 1,458,581 373,239,405 235,519,839 137,719,566 373,239,405 137,719,566 1,552,465 233,967,374	Consolidated 2020 £ 195,101,132 526,135 181,761,176 377,388,443 1,345,547 994,665 7,258,553 9,598,765 (3,337,567) 6,261,198 383,649,641 (40,000,000) 1,467,381 345,117,021 208,152,328 136,964,693 345,117,021 136,964,693 207,657,576 494,752	College 2020 £ 195,093,633 526,135 181,761,176
				377,380,944 292,373 2,127,559 7,079,835 9,499,767 (3,231,071)
				6,268,696
				383,649,640
				(40,000,000) 1,467,381
				345,117,021
				494,752 207,657,576
				208,152,328 136,964,693
				136,964,693
				345,117,021

The notes on pages 32 to 50 form part of these accounts.

The financial Statements were approved by Council on 8 November 2021 and signed on its behalf by:

Ms S. Alleyne

Dr R.F. Anthony

Ms Sonita Alleyne OBE Dr Richard Anthony Master Bursar

29

Jesus College

Statement of Changes in Reserves

Year Ended 30 June 2021

Balance at 1 July 2020 Surplus/(Deficit) from Income and Expenditure Statement Other Comprehensive Income Release of Restricted Capital Funds Spent in the Year Transfers Balance at 30 June 2021 Balance at 1 July 2019(As previously stated) Adjustment to Pension Reserve Balance at 1 July 2019 as restated Surplus/(Deficit) from Income and Expenditure Statement Other Comprehensive Income Release of Restricted Capital Funds Spent in the Year Balance at 30 June 2020 The notes on pages 32 to 50 form part of these accounts.	Unrestricted Restricted Endowment £ £ £ 136,964,693 494,752 207,657,576 541,302 1,023,284 26,309,798 248,000 - - 69,968 (69,968) - (104,397) 104,397 - 137,719,566 1,552,465 233,967,374 Unrestricted Restricted Endowment £ £ £ 133,712,992 343,278 210,757,055 685,000 - - 134,397,992 343,278 210,757,055 1,562,092 250,083 (3,099,479) 906,000 - - 98,609 (98,609) - 136,964,693 494,752 207,657,576 Income and Expenditure Reserve Income and Expenditure Reserve	Total £ 345,117,021 27,874,384 248,000 - -
		373,239,405
		Total £ 344,813,325 - 345,498,325 (1,287,304) 906,000 -
		345,117,021

30

Jesus College

Consolidated Cash Flow Statement

Year Ended 30 June 2021

Note Net cash inflow from operating activities 19 Cash Flows from Investing Activities 20 Cash Flows from Financing Activities 21 Increase/(decrease) in cash and cash equivalents in the year Cash and Cash Equivalents at Beginning of the Year Cash and Cash Equivalents at end of the Year The notes on pages 32 to 50 form part of these accounts	2021 £ 21,094,773 897,231 (1,891,927) 20,100,077 9,366,855 29,466,932	2020 £ (2,831,883) (1,452,400) (1,543,391)
		(5,827,674)
		15,194,529
		9,366,855

31

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

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 Graduate rate Cambridge Bursaries Other Income Total INCOME FROM ACCOMMODATION, CATERING AND CONFERENCES Accommodation: College members Conferences Catering: College members Conferences Total	2021 £ 2,101,313 260,185 1,392,249 187,352 (1,995) 3,939,104 2021 £ 3,180,192 208,004 346,200 122,478 3,856,874	2020 £ 1,995,313 326,580 1,347,789 157,762 13,304
		3,840,748
		2020 £ As Restated 3,121,831 1,474,688 676,108 903,588
		6,176,215

2 INCOME FROM ACCOMMODATION, CATERING AND CONFERENCES

3a ENDOWMENT RETURN AND INVESTMENT RETURN

Total return contribution (note 3b) Other interest Receivable Total	2021 £ 6,773,136 119,119 6,892,255	2020 £ 6,374,120 107,353
		6,481,473

The total return contribution is calculated as set out in the accounting policy on recognition of income and endowment return.

3b SUMMARY OF TOTAL RETURN

SUMMARY OF TOTAL RETURN
Income from: Land and buildings Quoted and other securities and cash Gains/(losses) on endowment assets: Land and buildings Quoted and other securities and cash Investment management costs (note 3c) Total Return for the year Total return transferred to income and expenditure account (note 3a) Unapplied total return for the year	2021 £ 3,928,817 2,538,319 6,467,136 9,710,122 16,058,675 25,768,797 (1,851,546) 30,384,387 (6,773,136) 23,611,251	2020 £ 4,352,458 2,324,267
		6,676,725 (3,150,200) 670,232
		(2,479,968) (1,417,691)
		2,779,066
		(6,374,120)
		(3,595,054)

32

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

3c INVESTMENT MANAGEMENT COSTS

INVESTMENT MANAGEMENT COSTS
Land and buildings Financial Investments Other investments Total	2021 £ 890,783 155,740 805,023 1,851,546	2020 £ 789,502 145,711 482,478
		1,417,691

4 EDUCATION EXPENDITURE

EDUCATION EXPENDITURE
Teaching Tutorial Admissions Research Scholarships and awards Other educational facilities Total	2021 £ 2,117,190 1,743,573 528,498 845,374 796,126 791,600 6,822,361	2020 £ As Restated 2,177,806 1,850,399 563,689 1,035,143 705,283 792,675
		7,124,995

• 5 ACCOMMODATION, CATERING AND CONFERENCES EXPENDITURE

Accommodation College members Conferences Catering College members Conferences Total	2021 £ 3,328,889 1,119,210 1,616,208 1,378,498 7,442,805	2020 £ As Restated 3,374,769 1,190,878 1,923,688 1,707,008
		8,196,343

33

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

6 ANALYSIS OF EXPENDITURE BY ACTIVITY

6a ANALYSIS OF 2020/21 EXPENDITURE BY ACTIVITY

Education Accomodation, catering and conferences Other Total	Staff Costs (note 7) Other operating expenses £ £ 3,418,881 2,717,083 3,197,305 2,763,157 363,127 621,628 6,979,313 6,101,868	Depreciation Total £ £ 686,397 6,822,361 1,482,343 7,442,805 143,159 1,127,914 2,311,899 15,393,080

*Other expenditure includes £191k (2020: £213k) as the costs of fundraising. This expenditure does not include the costs of alumni relations.

6b ANALYSIS OF 2019/20 EXPENDITURE BY ACTIVITY

Education Accommodation, catering and conferences Other Total	Staff Costs (note 7) £ 3,382,865 3,163,623 359,302 6,905,790	Other operating Expenses £ As Restated 3,068,632 3,575,736 203,221 6,847,589	Depreciation £ As Restated 673,498 1,456,978 140,321 2,270,797	Total £ As Restated 7,124,995 8,196,337 702,844
				16,024,176

*The cost allocation method has been fully reviewed in 2020-21 and to ensure that the comparative figures are shown on a consistent basis, the allocations in notes 2, 4, 5 and 6b have been restated for 2019-20.

6c AUDITORS REMUNERATION

Other operating expenses include: Audit fees payable to the College’s external auditors Other fees payable to the College’s external auditors	2021 £ 37,481 2,586 40,067	2020 £ 33,967 11,607
		45,574

34

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

7 STAFF COSTS

STAFF COSTS
Consolidated	College Fellows Academic	College Fellows Non- Academic	Staff Non- Academics	Total	Total
	2021	2021	2021	2021	2020
	£	£	£	£	£
Staff costs
Emoluments	926,815	306,332	4,550,931	5,784,078	6,264,612
Social security costs	71,537	29,105	345,618	446,260	482,706
Other pension costs	251,656	55,797	441,522	748,975	158,472
Total	1,250,008	391,234	5,338,071	6,979,313	6,905,790
Average staff numbers (full time equivalents)
Academic	82	-	-	82	90
Non-academic	-	5	187	192	202
	82	5	187	274	292

The Governing Body comprises the Master and 87 Fellows, together with 34 Emeritus Fellows of whom the 87 are declared above as stipendiary.

The number of officers and employees of the College, including Head of House, who received remuneration in the following ranges was:

		2021	2020
£100,001	- £110,000	-	-
£110,001	- £120,000	1	2
£120,001	- £130,000	2	-

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

Members of Council received remuneration for their academic and administrative duties but were not remunerated for the role as Trustees of the Charity.

Key management personnel

Key Management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College. This includes the Master, Vice-Master, Bursar, Senior Tutor and the Trustees.

Key Management Personnel - Aggregated emoluments

Total	Total
2021	2020
£	£
657,749	606,517

35

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

8 FIXED ASSETS

College Cost or valuation At beginning of year Additions Transfers Disposals At end of year Depreciation At beginning of year Charge for the year Eliminated on disposals Written back on revaluation At end of year Net Book Value At beginning of year At end of year Consolidated Cost or valuation At beginning of year Additions Transfers Disposals At end of year Depreciation At beginning of year Charge for the year Eliminated on disposals Written back on revaluation At end of year Net Book Value At beginning of year At end of year	Land and Buildings 2021 £ 216,489,206 568,799 (924,780) - 216,133,225 26,463,776 1,822,701 - - 28,286,477 190,025,430 187,846,748 Land and Buildings 2021 £ 216,496,705 568,799 (924,780) - 216,140,724 26,463,776 1,822,701 - - 28,286,477 190,032,929 187,854,247	Assets in Construction 2021 £ 2,945,078 4,050,803 - - 6,995,881 - - - - - 2,945,078 6,995,881 Assets in Construction 2021 £ 2,945,078 4,050,803 - - 6,995,881 - - - - - 2,945,078 6,995,881	Heritage Assets 2021 £ 526,135 - - - 526,135 - - - - - 526,135 526,135 Heritage Assets 2021 £ 526,135 - - - 526,135 - - - - - 526,135 526,135	Equipment 2021 £ 4,559,726 453,278 - - 5,013,004 2,436,602 489,198 - - 2,925,800 2,123,124 2,087,204 Equipment 2021 £ 4,559,726 453,278 - - 5,013,004 2,436,602 489,198 - - 2,925,800 2,123,124 2,087,204	Total 2021 £ 224,520,145 5,072,880 (924,780) - 228,668,245 28,900,378 2,311,899 - - 31,212,277 195,619,767 197,455,968 Total 2021 £ 224,527,644 5,072,880 (924,780) - 228,675,744 28,900,378 2,311,899 - - 31,212,277 195,627,266 197,463,467	Total 2020 £ 219,344,177 4,570,968 605,000 -
						224,520,145
						26,629,578 2,270,799 - -
						28,900,377
						192,714,599
						195,619,768
						Total 2020 £ 219,351,676 4,570,968 605,000 -
						224,527,644
						26,629,578 2,270,799 - -
						28,900,377
						192,722,098
						195,627,267

The insured value of freehold land and buildings as at 30 June 2021 was £261 million (2020: £257 million). The College is unable to split land and buildings.

Heritage Assets

The College holds and conserves certain collections, artefacts and other assets of historical, artistic or scientific importance.

As stated in the statement of principal accounting policies, heritage assets acquired since 2011 have been capitalised. However, the majority of assets held in the College’s collections were acquired prior to this date. As reliable estimates of cost or valuation are not available for these on a cost-benefit basis, they have not been capitalised. As a result the total included in the balance sheet is partial.

Amounts for the current and previous years were as follows:

Value of acquisitions By Donation Value of acquisitions By Purchases Total acquisitions capitalised	2021 £ - - -	2020 £ - 2,500 2,500	2019 £ - 21,000 21,000	2018 £ - - -	2017 £ 101,800 -
					101,800

36

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

9 INVESTMENTS

Consolidated 2021 £ Balance at beginning of year 181,761,176 Transfer from (to) operational assets 924,780 Additions 23,920,061 Disposals (24,306,626) Gain/(Loss) on Disposals 439,918 Gain/(Loss) 24,480,041 Increase/ (decrease) in cash balances held at fund manager 3,366,144 Balance at the end of the year 210,585,494 Represented by: Property 101,356,200 Quoted securities - equities 43,936,329 Fixed interest securities - Investments in subsidiary undertakings - Cash in hand and at investment managers 5,474,446 Cambridge University Endowment Fund 43,869,155 Other investments 15,949,364 Total 210,585,494 10 STOCKS Consolidated 2021 £ Land for resale 1,085,643 Goods 264,296 Total 1,349,939	College 2021 £ 181,761,176 924,780 23,920,061 (24,306,626) 439,918 24,480,041 3,366,144 210,585,494 89,493,200 43,936,329 - 11,863,000 5,474,446 43,869,155 15,949,364 210,585,494 College 2021 £ - 264,296 264,296	Consolidated 2020 £ 184,190,865 (605,000) 18,120,624 (15,883,154) (1,323,397) (1,146,223) (1,592,539) 181,761,176 93,421,700 36,924,788 - - 2,108,302 36,015,579 13,290,807 181,761,176 Consolidated 2020 £ 1,053,174 292,372 1,345,546	College 2020 £ 184,190,865 (605,000) 18,120,624 (15,883,154) (1,323,397) (1,146,223) (1,592,539)
			181,761,176
			85,451,700 36,924,788 - 7,970,000 2,108,302 36,015,579 13,290,807
			181,761,176
			College 2020 £ - 292,372
			292,372

11 DEBTORS

DEBTORS
Members of the College Amounts due from subsidiary undertakings Other Prepayments and accrued income Total	Consolidated 2021 £ 148,420 - 1,418,925 53,975 1,621,320	College 2021 £ 148,420 1,416,974 1,365,376 53,975 2,984,745	Consolidated 2020 £ 148,725 - 807,127 38,813 994,665	College 2020 £ 148,725 1,194,810 745,211 38,813
				2,127,559

12 CASH AND CASH EQUIVALENTS

Current accounts Cash in hand Short-term Money Market Investments Total	Consolidated College 2021 2021 £ £ 5,913,241 5,517,022 911 911 18,078,334 18,078,334 23,992,486 23,596,267	Consolidated 2020 £ 4,044,130 2,423 3,212,000 7,258,553	College 2020 £ 3,865,412 2,423 3,212,000
			7,079,835

37

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

13 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade Creditors Members of the College Amounts due to Subsidiary Undertakings University Fees Contribution to Colleges Fund Other creditors (e.g. VAT) Accruals and Deferred Income Total	Consolidated 2021 £ 398,087 758,439 - 45,013 88,000 1,066,699 875,644 3,231,882	College 2021 £ 398,087 758,439 - 45,013 88,000 949,565 866,842 3,105,946	Consolidated 2020 £ 400,782 678,936 - 598,006 87,000 1,010,757 562,086 3,337,567	College 2020 £ 400,782 678,936 2,206 598,006 87,000 907,854 556,286
				3,231,070

14 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Total loans Total	Consolidated 2021 £ 60,000,000 60,000,000	College 2021 £ 60,000,000 60,000,000	Consolidated 2020 £ 40,000,000 40,000,000	College 2020 £ 40,000,000
				40,000,000

In October 2018 the College entered into an agreement to borrow £40m through two private placement bonds. Each bond was for £20m:

'A' - drawdown in October 2018 and repayable in 2058.

'B' - drawdown in October 2020 and repayable in 2068.

The College also has an unsecured fixed rate bank loan of £20m repayable in 2039.

15 PENSION PROVISIONS

Balance at the beginning of the year Movement in the year: Current service cost including life assurance Contributions Other finance (income)/cost Actuarial gain recognised in Statement of Comprehensive Income and Expenditure Balance at the end of the year The total is comprised of the following: Universities Superannuation Scheme Jesus College Cambridge Pension Scheme	USS 2021 £ (480,619) 56,831 (293,202) 172,571 - (544,419) 2021 (544,419) 2,003,000 1,458,581	JCCPS 2021 £ 1,948,000 (287,000) 65,000 29,000 248,000 2,003,000	USS 2020 £ (944,412) (478,714) (267,514) 1,210,021 - (480,619) 2020 (480,619) 1,948,000 1,467,381	JCCPS 2020 £ 1,193,000 (246,000) 69,000 26,000 906,000
				1,948,000

38

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

16 ENDOWMENT FUNDS

Restricted net assets relating to endowments are as follows:

Consolidated & College Balance at the beginning of the year Capital Unspent Income Increase/(decrease) in market value of investments Total Return Transfer New endowments received Balance at the end of the year Comprising: Capital Balance at the end of the year Representing: Fellowship Funds Student Support Bursary Income for College Prizes Travel & Leisure Other Funds General Endowments Total Analysis by Asset Property Investments Cash RESTRICTED RESERVES Reserves with restrictions are as follows: Consolidated & College Balance at the beginning of the year Capital Unspent Income New donations Income from Endowment Asset Investments Expenditure Capital grants utilised Transfers Balance at the end of the year Comprising: Capital Unspent Income Balance at the end of the year Representing: Fellowship Funds Student Support Bursary Income for College Travel & Leisure Other Funds General Endowments Total	Restricted Permanent 2021 £ 30,801,678 - 30,801,678 6,438,513 (988,452) 1,662,936 37,914,675 37,914,675 37,914,675 6,425,458 9,688,881 6,728,222 11,060,124 404,620 302,789 3,304,581 - 37,914,675 - 37,914,675 - 37,914,675 Capital Grants Unspent 2021 £ - - - 69,968 - - (69,968) - - - - - - - - - - - - -	Unrestricted Permanent 2021 £ 176,855,898 - 176,855,898 19,330,284 (1,169,095) 1,035,612 196,052,699 196,052,699 196,052,699 - - - - - - - 196,052,699 196,052,699 23,381,880 172,670,819 - 196,052,699 Permanent unspent and other restricted income 2021 £ - 494,752 494,752 - 1,546,963 (1,174,728) - 104,397 971,384 - 971,384 971,384 - 599,441 107,584 16,013 1,289 247,057 - 971,384	Restricted expendable endowment 2021 £ - - - 581,081 - - - - 581,081 581,081 - 581,081 - - - - - - 581,081 581,081	Total 2021 £ 207,657,576 - 207,657,576 25,768,797 (2,157,547) 2,698,548 233,967,374 233,967,374 233,967,374 6,425,458 9,688,881 6,728,222 11,060,124 404,620 302,789 3,304,581 196,052,699 233,967,374 23,381,880 210,585,494 - 233,967,374 Total 2021 £ - 494,752 494,752 651,049 1,546,963 (1,174,728) (69,968) 104,397 1,552,465 - 971,384 971,384 - 599,441 107,584 16,013 1,289 247,057 581,081 1,552,465	Total 2020 £ 210,757,055 -
					210,757,055
					(2,479,968) (1,115,086) 495,575
					207,657,576
					207,657,576
					207,657,576
					4,651,229 8,073,728 5,822,618 8,838,202 351,261 262,859 2,801,781 176,855,898
					207,657,576
					25,896,400 181,761,176 -
					207,657,576
					Total 2020 ` - 343,278
					343,278
					98,609 1,183,756 (1,032,282) (98,609) -
					494,752
					- 494,752
					494,752
					2,692 295,075 82,825 1,721 1,185 111,254 -
					494,752

17 RESTRICTED RESERVES

In financial year 2010-11 the Maitland Memorial Fund was established. The capital value of the fund as at 30 June 2021 was £578,753 (2020: £502,951). The Fund's income in 2020-21 was £17,476.

39

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

18 MEMORANDUM OF UNAPPLIED TOTAL RETURN

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

Unapplied Total Return at beginning of year Unapplied Total Return for year (see note 3b) Unapplied Total Return at end of year 19 RECONCILIATION OF CONSOLIDATED OPERATING SURPLUS TO NET CASH INFLOW FROM OPERATING ACTIVTIES Surplus/(deficit) for the year Adjustment for Non-Cash Items: Depreciation Loss/(gain) on endowments, donations and investment property Decrease/(Increase) in stocks Decrease/(increase) in trade and other receivables (Decrease)/increase in creditors excluding bank loans Increase/(Decrease) in provisions Pension costs less contributions payable Adjustment for investing or financing activities Investment income Interest payable Loss/(Profit) on the sale of non-current assets (Decrease)/Increase in short term loans (Decrease)/Increase in long term loans Net cash (outflow)/inflow from operating activities 20 CASH FLOWS FROM INVESTING ACTIVITIES Non-Current Investment Disposal Investment Income Payments made to acquire non-current assets Total Cash Flowed From Investing Activities 21 CASH FLOWS FROM FINANCING ACTIVITIES Interest Paid Total Cash Flowed From Financing Activities	2021 £ 93,549,126 23,611,251 117,160,377 2021 £ 27,874,384 2,311,899 (23,917,251) (4,385) (626,661) (105,685) 63,800 193,000 (6,586,255) 1,891,927 - - 20,000,000 21,094,773 2021 £ 23,303,917 6,586,255 (28,992,941) 897,231 2021 £ (1,891,927) (1,891,927)	2020 £ 97,144,180 (3,595,054)
		93,549,126
		2020 £ (1,287,304) 2,270,799 3,897,659 (665,348) (164,177) (1,330,032) (463,793) 151,000 (6,784,078) 1,543,391 - - -
		(2,831,883)
		2020 £ 14,455,114 6,784,078 (22,691,592)
		(1,452,400)
		2020 £ (1,543,391)
		(1,543,391)

40

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

22 CONSOLIDATED RECONCILIATION AND ANALYSIS OF NET DEBT

22 CONSOLIDATED RECONCILIATION AND ANALYSIS OF NET DEBT	S OF NET DEBT
At 1 July 2020 Cash Flows Acquisition and disposal £ £ £ Cash and cash equivalents 9,366,855 20,100,077 - Borrowings: amounts falling due within one year Secured loans - - - Unsecured loans - - - Bank overdraft - - - Obligations under finance leases - - - - - - Borrowings: Amounts falling due after more than one year Secured loans (40,000,000) (20,000,000) - Unsecured loans - - - Obligations under finance leases - - - (40,000,000) (20,000,000) - Total (30,633,145) 100,077 - 23 FINANCIAL INSTRUMENTS Financial assets Financial assets at fair value through Statement of Comprehensive income Listed equity investments (note 9) Other investments (note 9) Financial assets that are debt instruments measured at amortised cost Cash and cash equivalents (notes 9 and 12) Other debtors (note 11) Financial liabilities Financial liabilities measured at amortised cost Bank overdraft Loans (note 14) Trade creditors (note 13) Other creditors (note 13) 24 CAPITAL COMMITMENTS Capital commitments at 30 June 2021 were as follows: Authorised and contracted Authorised but not yet contracted for 25 LEASE OBLIGATIONS At 30 June the College had commitments under non-cancellable operating leases as follows: Other: Expiring within one year Expiring between two and five years Total	At 1 July 2020 £ 9,366,855 - - - -	Cash Flows £ 20,100,077 - - - -	Acquisition and disposal £ - - - - -	New finance leases £ - - - - -	At 30 June 2021 £ 29,466,932 - - - -
	- (40,000,000) - -	- (20,000,000) - -	- - - -	- - - -	- (60,000,000) - -
	(40,000,000)	(20,000,000)	-	-	(60,000,000)
	(30,633,145)	100,077	-	-	(30,533,068)
				2021 £ 87,805,484 15,949,364 29,466,932 1,567,345 - 60,000,000 398,087 1,958,151 2021 £ 10,588,000 4,375,000 2021 £ - 9,983	2020 £ 72,940,367 13,290,807 9,366,855 955,852 - 60,000,000 400,782 2,374,699 2020 £ 3,580,000 575,000 2020 £ - 25,810
				9,983	25,810

41

Year Ended 30 June 2021

Jesus College

Notes to the Accounts

26 PRINCIPAL SUBSIDIARY AND ASSOCIATED UNDERTAKINGS AND OTHER SIGNIFICANT INVESTMENTS

	Country of	Cost	Class of	Holding
	Incorporation		shares
	and Operation	£
Jesus College Cambridge Conferences Limited	England	100	Ordinary	100%
Jesus College Developments Limited	England	1	Ordinary	100%
Jesus College (Station Road Investments) Limited	England	3,065,002	Ordinary	100%
Jesus College (Harston Barns) Limited	England	1	Ordinary	100%
Jesus College Cambridge Properties Limited	England	2	Ordinary	100%
Alcock Investments Limited	England	2	Ordinary	100%

The principal activities of the above companies are detailed in the directors' report of the individual companies' financial statements and are all included in the consolidated financial statements.

Jesus College Cambridge Conferences Limited activity during the year was that of conference trading. Jesus College Developments Limited activity during the year was building contract management. Jesus College (Station Road Investments) Limited activity during the year was investing in property. Jesus College (Harston Barns) Limited activity during the year was housing development.

Companies that remained dormant throughout the year were: Jesus College Cambridge Properties Limited

Alcock Investments Limited

27 CONTINGENT LIABILITIES

With effect from 16 March 2007, the Universities Superannuation Scheme (USS) positioned itself as a “last man standing” scheme so that in the event of an insolvency of any of the participating employers in USS, the amount of any pension funding shortfall (which cannot otherwise be recovered) in respect of that employer will be spread across the remaining participant employers.

28 PENSIONS

The total pension cost was as follows: Universities Superannuation Scheme: Contributions JCCPS: Charged to income and expenditure account Defined Contribution Scheme: Contributions Church of England Funded Pensions Scheme: Contributions Total	2021 £ 293,202 (316,000) 133,825 - 111,027	2020 £ 267,514 220,000 132,430 2,451
		622,395

29 RELATED PARTY TRANSACTIONS

Owing to the nature of the College’s operations and the composition of the 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 Council members and where any member of the College Council has a material interest in a College matter they are required to declare that fact.

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

Fellows are remunerated for teaching, research and other duties within the College. Fellows are billed for any private catering. The Trustees remuneration is overseen by the Remuneration Committee.

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

From (£)	To (£)	2021 Number	2020 Number
0	10,000	8	8
10,001	20,000	1	-
20,001	30,000	2	3
30,001	40,000	-	-
40,001	50,000	-	-
50,001	60,000	1	1
60,001	70,000	1	-
70,001	80,000	1	2
80,001	90,000	1	2
90,001	100,000	2	-
	Total	17	16

The total Trustee salaries were £557,076 for the year (2020: £467,344).

The trustees were also paid other taxable benefits (including associated employer National Insurance contributions and employer contributions to pensions) which totalled £100,673 for the year (2020: £139,173).

Approved loans to Trustees during the year totalled £82,953 (2020: £7,877).

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

The College 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.

42

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

30 POST BALANCE SHEET EVENT

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 £846,091 in the provision for the obligation to fund the deficit on the USS pension which would instead be £1,390,510. 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 charges 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 £1,708,605 in the provision for the obligation to fund the deficit on the USS pension which would instead be £2,253,024.

43

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

31 Pension Schemes

Universities Superannuation Scheme

The College participates in 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 defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme. Since the institution has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the institution recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) with related expenses being recognised through the profit and loss account.

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

Pension Costs

The total cost charged to the profit and loss account is £293,202 (2020: £267,514) as shown in note 28.

Deficit recovery contributions due within one year for the institution are £21,566 (2020: £20,129).

As at the 30 June 2021, the latest available complete actuarial valuation of the Retirement Income Builder was at 31 March 2018 (the valuation date), which was carried out using the projected unit method. Since the year end the valuation as at 31 March 2020 was signed and filed with The Pensions Regulator with an effective date of 1 October 2021. As the new valuation was not in place at the financial year end, any adjustment in the deficit provision will be reflected in the financial statements for the year ended 30 June 2022.

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

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

44

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

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:

Pre-Retirement:

Male members’ mortality 71% of AMC00 (duration 0) Female members’ mortality 112% of AFC00 (duration 0) Post retirement: Male members’ mortality 97.6% of SAPS S1NMA “light” Female members’ mortality 102.7% of RFV00

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
Males currently aged 65 (years)	24.6	24.4
Females currently aged 65 (years)	26.1	25.9
Males currently aged 45 (years)	26.6	26.3
Females currently aged 45 (years)	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:

Discount rate*	2021	2020
	0.87%	1.45%
Pensionable salary growth*	1.00%	1.00%

45

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

The Jesus College Cambridge Pension Scheme

The College operates a defined benefit scheme in the UK. This is a separate trustee administered fund holding the pension scheme assets to meet long term pension liabilities. A full actuarial valuation was carried out at 30 June 2018 and updated to 30 June 2021 by a qualified actuary, independent of the scheme's sponsoring employer. The major assumptions used by the actuary are shown below.

The most recent actuarial valuation showed a surplus of £2,251,000. The college has agreed that it will pay 9.3% of pensionable earnings in respect of the cost of accruing benefits and will meet Pension Protection Fund levies, insurance premiums towards death in service benefits and management and administration expenses (excluding those covered by the Phoenix Life Limited contract) as and when they are due. Member contributions are payable in addition at the rate of 6% of pensionable salaries.

Present values of scheme liabilities, fair value of assets and surplus (deficit)

	30 June 2021 £	30 June 2020 £	30 June 2019 £
Fair value of scheme assets Present value of scheme liabilities Surplus (deficit) in scheme Unrecognised surplus Defined benefit asset (liability) to be recognised	14,501,000 12,498,000 2,003,000 - 2,003,000	15,312,000 13,364,000 1,948,000 - 1,948,000	12,889,000 11,696,000 1,193,000 - 1,193,000

Reconciliation of opening and closing balances of the defined benefit obligation

	Year Ending 30 June 2021 £	Year Ending 30 June 2020 £
Scheme liabilities at start of period Current service cost Interest cost Contributions by scheme participants Actuarial losses (gains) Benefits paid and death in service insurance premiums Scheme liabilities at end of period	13,364,000 287,000 212,000 42,000 (807,000) (600,000) 12,498,000	11,696,000 246,000 267,000 45,000 1,530,000 (420,000) 13,364,000

46

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

Reconciliation of opening and closing balances of the fair value of scheme assets

	Year Ending 30 June 2021 £	Year Ending 30 June 2020 £
Fair value of scheme assets at start of period Expected return on scheme assets Actuarial gains (losses) Contributions by the college Contributions by scheme participants Benefits paid and death in service insurance premiums Fair value of scheme assets at end of year	15,312,000 241,000 (559,000) 65,000 42,000 (600,000) 14,501,000	12,889,000 293,000 2,436,000 69,000 45,000 (420,000) 15,312,000

The actuarial return on the scheme assets over the period ending 30 June 2021 was £2,729,000.

Defined Benefit costs recognised in profit or loss

efined Benefit costs recognised in profit or loss
	Year Ending 30 June 2021 £	Year Ending 30 June 2020 £
Current service cost Net Interest cost Total expense recognised in profit and loss account	287,000 (29,000) 258,000	246,000 (26,000) 220,000

47

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

Defined Benefit Costs Recognised in Other Comprehensive Income

efined Benefit Costs Recognised in Other Comprehensive Income
	Year Ending 30 June 2021 £	Year Ending 30 June 2020 £
Difference between expected and actual return on scheme assets - gain (loss) Effects of changes in the demographic and financial assumptions underlying the present value of the assets – gain (loss) Experience gains and losses arising on the scheme liabilities - gain (loss) Effects of changes in the demographic and financial assumptions underlying the present value of the scheme liabilities - gain (loss) Effects of change in the amount of surplus that is not recoverable (excluding amounts included in net interest cost) – gain (loss) Total amount recognised in Consolidated Statement of Comprehensive Income and Expenditure	248,000 (807,000) 335,000 472,000 - 248,000	260,000 2,176,000 389,000 (1,919,000) - 906,000

Assets

ssets
	30 June 2021 £	30 June 2020 £	30 June 2019 £
With Profit Contract Total Assets	14,501,000 14,501,000	15,312,000 15,312,000	12,889,000 12,889,000

None of the fair values of the assets shown above include any direct investments in the College’s own financial instruments or any property occupied by, or other assets used by the College.

48

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

Assumptions

ssumptions
	30 June 2021 % per annum	30 June 2020 % per annum	30 June 2019 % per annum
Discount rate Inflation (RPI) Inflation (CPI) Salary Growth Allowance for revaluation of deferred pensions of CPI or 5% p.a. if less Allowance for revaluation of deferred pensions of CPI or 2.5% p.a. if less Allowance for pension in payment increases of RPI or 5% p.a. if less Allowance for pension in payment increases of CPI or 3% p.a. if less Allowance for pension in payment increases of RPI or 2.5% p.a. if less Allowance for commutation of pension for cash at retirement	1.90 3.30 2.80 4.80 2.80 2.50 3.10 2.20 2.10 None	1.60 3.00 2.50 4.50 2.50 2.50 2.90 2.10 2.00 None	2.30 3.30 2.40 4.80 2.40 2.40 3.10 2.00 2.10 None

The mortality assumptions adopted at 30 June 2021 imply the following future life expectancies at age 65:

Male retiring in 2021	22.1 years
Female retiring in 2021	23.8 years
Male retiring in 2041	23.4 years
Female retiring in 2041	25.4 years

The best estimate of contributions to be paid by the college to the scheme for the period commencing 1 July 2021 is £68,000.

It should be noted that the deferred benefit asset for JCCPS was incorrectly recorded in the 2019 and 2020 accounts as £508,000 instead of £1,193,000 for 2018-19 and £1,404,000 instead of £1,948,000 for 2019-20, as stated on page 46. This resulted in a prior year adjustments figure of £544,000. In the SOCIE for 2020, the figure of £1,047,000 has been restated to the correct value of £906,000.

49

Jesus College

Notes to the Accounts

Year Ended 30 June 2021

Jesus College Defined Contribution Scheme

The College operates a defined contribution pension scheme for certain of its employees. The assets of the scheme are held separately from those of the College. The annual contributions payable are charged to the Income and Expenditure Account.

The pension cost charge represents contributions payable by the College and amounted to £133,825 (2020: £132,430).

50