2022-07-31-accounts

Charity Registration No: 1137471

HUGHES HALL

RECOMMENDED CAMBRIDGE COLLEGE ACCOUNTS

FOR THE YEAR ENDED

31 JULY 2022

HUGHES HALL

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2022

Contents

	Page
Reference and Administration Details	2
Members of the Governing Body	3
Report of the Trustees	4 – 16
Report of the Auditors	17 – 20
Statement of Principal Accounting Policies	21 – 27
Consolidated Statement of Comprehensive Income and Expenditure	28
Consolidated and College Statement of Changes in Reserves	29
Consolidated and College Balance Sheet	30
Cash Flow Statement	31
Notes to the Accounts	32 – 49

1

HUGHES HALL

REFERENCE AND ADMINISTRATION DETAILS FOR THE YEAR ENDED 31 JULY 2022

Name of College:

The President and Fellows of Hughes Hall in the University of Cambridge

Address: Hughes Hall Cambridge CB1 2EW

Charity Commission Registered No: 1137471

Advisors: Auditors Peters Elworthy & Moore Salisbury House Station Road Cambridge CB1 2LA Solicitors Ashton Legal Chequers House 77-81 Newmarket Road Cambridge CB5 8EU Mills & Reeve Francis House 112 Hills Road Cambridge CB2 1PH Bankers Lloyds Bank 3 Sidney Street Cambridge CB2 3HQ Fund Managers Cazenove Capital 1 London Wall Place London EC2Y 5AU Senior officers: Head of House Dr Anthony Freeling Bursar Mr Jonathan Newby Senior Tutor Dr Tori McKee

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HUGHES HALL

MEMBERS OF THE GOVERNING BODY FOR THE YEAR ENDED 31 JULY 2022

Charity Trustees (Members of the Governing Body)

The trustees of the College during the period 1 August 2021 to 31 July 2022 were:

Head of House Dr A Freeling (President) *

Fellows:

Dr Farah Ahmed (appointed 22 June 2022) Mrs Heidi Allen (resigned 25 November 2021) Mr Mark Anderson Dr Stephen Axford Prof Michael Barrett Dr Jimmy Chan Mr William Charnley Dr Othman Cole Dr Bart de Nijs Dr Paula De Oliveira-Banca Prof Gishan Dissanaike Dr Claire Donnelly (resigned 31 August 2021)

Prof John Doorbar * Prof Ming-Qing Du (resigned 30 September 2021) Dr Pete Dudley Dr Fatmah Mish Ebrahim (appointed 22 June 2022) Ms Emily Farnworth (appointed 22 June 2022) Prof Tamsin Ford Dr Markus Gehring Prof Emanuele Giovannetti Prof Sara Hennessy Dr Sarah Hoare Dr Riikka Hofmann Dr Sonia Ilie * Prof Bill Irish * Dr Agnieszka Iwasiewicz-Wabnig Dr Philip Johnston * (resigned 31 August 2021) Dr Tobias Kohn * (resigned 31 March 2022) Dr Yury Korolev * Dr Alastair Lockhart Dr Andrew Mackintosh Ms Mahnaz Malik (appointed 1 September 2021)

Dr David McCay (appointed 22 June 2022) Dr Tori McKee * (appointed 1 September 2021) Mr Jonathan Newby * (appointed 8 November 2021) Dr Timea Nochta (resigned 30 September 2021) Prof William Nuttall Prof Ajith Parlikad Prof Jonathan Powell *

Mrs Laurel Powers-Freeling Dr Perla Pucci (appointed 22 June 2022) Dr Aisling Redmond (resigned 30 September 2021) Dr Corinne Roughley * Dr Ricardo Sabates-Aysa * Dr Carole Sargent * Prof Kishore Sengupta Prof Eugene Shwageraus Prof Nidhi Singal * Dr Jeffrey Skopek Prof Jacob Stegenga Dr Martin Steinfeld Prof Andreas Stylianides Dr Livia Tomova Prof Paul Tracey Dr Caroline Trotter Prof Suzanne Turner Dr Lars Vinx * Prof Rupert Wegerif Dr Clive Wells Dr Claire West (appointed 22 June 2022) Dr Jessica White Dr Nigel Yandell

Those members of the Governing Body marked * (together with the student President and Secretary of the Middle Common Room) served as members of the College Council within the period.

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HUGHES HALL

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JULY 2022

OPERATING AND FINANCIAL REVIEW

Introduction

Hughes Hall (the “College”) is pleased to present its operating and financial review, together with the financial statements for the year ended 31 July 2022.

For the College, 2021/2022 was a year of recovery, reflection and reinvigoration.

In the autumn, with Covid-19 national restrictions now lifted, College life returned to a more recognisable pattern. We welcomed a new Senior Tutor and a new Bursar in Michaelmas Term, and planned for the recruitment of a new President, as Dr Anthony Freeling’s presidential term ends on 30 September 2022.

This post-Covid recovery stage meant a long-awaited return to College for employees who had been based at home for the majority of the preceding year, for Fellows keen to re-establish their connection with the College and for students who, although in residence, had not been able to participate in the full range of experience of life at Hughes.

The College entered a period of reflection in May 2022, following the sad news of the death of one of our students. Our community united to support each other through this time; our thoughts remain with their friends and family.

As the academic year ended, the College looked ahead to 2022-2023, when our reinvigorated community could reunite with fresh purpose in its educational mission. Our goal of establishing Hughes Hall as a pioneering college with unique connections between the academic, professional and commercial worlds will only be achieved by working alongside the outstanding, innovative and inspiring community that is Hughes. Our thanks, as always, goes to them.

The College

The College owes its origins to the Cambridge Training College for Women, founded in 1885, which was subsequently incorporated under the Companies Act. The College petitioned for the grant of a Charter of Incorporation which was given under the title of ‘The President and Fellows of Hughes Hall in the University of Cambridge’ in July 2006. Today, the College is known as ‘Hughes Hall’ and is one of 31 self-governing colleges within the University of Cambridge.

The College is the oldest and largest graduate college in Cambridge yet wears its history lightly. We have a record of being innovative: our Victorian benefactors were unique in admitting women graduates and offering provision for graduate students specifically. Once Cambridge finally admitted women undergraduates, the College became an integral part of the University’s drive to develop post-graduate education from the 1960s onwards. During this period the College grew to nearly 400 students and developed its estate, extending the original building, renamed the Margaret Wileman building, and erecting Chancellors’ Court, the Centenary building and the Fenner’s building.

By the time it received its Royal Charter in 2006 the College was already developing its distinctive intellectual strengths and reputation as a ‘bridge’ between academia and the wider world, a nexus of open, transformative practice and research. Growing to a college of over 850 students, in the last ten years the College has raised more than £3m for scholarships, expanded its library and study facilities, increased its student accommodation by over 100 rooms and increased its staff to enhance both academic and pastoral support.

The Bridge at Hughes Hall leverages the College’s multi-disciplinary perspective, international nature and external focus to bring the research and expertise of its academic community to solve real world problems. It drives the translation of research and knowledge, turning brilliant ideas into lasting change, and equips our researchers to progress successfully in their future careers, whether in academia or the wider world. It does this through a mix of well-defined programmes (Bridge Centres) and smaller projects and shared interest groups. The major initiatives are summarised below.

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REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 JULY 2022

The Centre for Climate Engagement (CCE) was established to increase awareness of climate change mitigation and adaptation on the boards of private companies and the need for urgent action. Climate change has not been given the priority it deserves on many boards, despite the potential for businesses to contribute in an important way through emissions reduction and by taking advantage of the opportunities presented by the transition to a net-zero and climate resilient future.

Cambridge Digital Innovation (CDI) stimulates interaction between industry professionals, policy-makers, academics, students and enthusiasts on the most exciting and impactful phenomena driving the digital revolution. A key focus of CDI as a Knowledge Hub is help develop and translate knowledge from academia into practice and policy.

The Digital Education Futures Initiative (DEFI) aims to create a more inclusive global education system by building a community that offers a space for open dialogue, research, reflection and thought leadership on digital education’s role in shaping a sustainable future. A key DEFI programme – Camtree – is creating a research exchange platform that will enable educators to share and publish their research and to learn with, from and on behalf of like-minded colleagues around the world. This offers a growing knowledge base of early-stage pedagogic innovations that can inform policy, practice and improve learning outcomes for all – especially the most vulnerable and disadvantaged.

Oracy Cambridge aims to raise awareness of the importance of effective spoken communication, and ways that it can be taught and learned, amongst policy makers and practitioners, within the UK and internationally.

The Impact Leadership Programme provides transferable skills and experiences to complement academic research training. It is open to postdoctoral researchers and PhD students at Hughes and is relevant to those from all backgrounds interested in a variety of professional paths.

Hughes Hall is proud of its unique Bridge Fellows scheme, which appoints individuals from non-academic walks of life to foster the College’s links to the global business and policy community and to enhance the professional range of the College’s senior membership. Across both our senior membership and Fellowship, we are actively working to increase its diversity and inclusiveness, particularly in terms of gender and ethnicity.

As a group, the formal “Fellows” of the College form the Governing Body, the highest authority in the College, and the College’s charity trustees. The College is committed to the election of a more diverse Fellowship and its broader senior membership is made up of over 200 Honorary, Life, By and Quondam Fellows, as well as Associates and Research Associates. This incorporates a wide range of scholars and professionals into the intellectual and communal life of the College and these individuals represent the core academic, cultural and institutional leadership of the College community.

An important feature of collegiate life at Hughes Hall is that students and the senior membership mix freely, with no separate provision at regular meals or in the use of the College’s recreational facilities. In a distinctive way, fostered by the egalitarian and mature atmosphere of the College, all members, whether student, Fellow or other senior member, have opportunities to share interests and learn from one another in the relaxed interdisciplinary environment of the College.

Scope of the financial statements

The consolidated financial statements cover the activities of Hughes Hall, Hughes Hall Ltd, Hughes Hall (Hong Kong) Ltd, Hughes Hall Conference Company Ltd and Chapter Zero Ltd.

Hughes Hall Ltd is a wholly owned subsidiary of Hughes Hall and its principal activity is to design and build new residential accommodation at Hughes Hall. The Directors are all trustees of Hughes Hall.

Hughes Hall (Hong Kong) Ltd is a wholly owned subsidiary of Hughes Hall, incorporated and domiciled in Hong Kong. Its principal activity is the promotion of learning and education at Hughes Hall, University of Cambridge. It was set up to facilitate the processing of donations from Hong Kong based benefactors. It is audited separately in Hong Kong by local accountants to satisfy Hong Kong regulations and the Hughes Hall consolidated accounts include the draft Financial Statements for Hughes Hall (Hong Kong) Ltd for the year ended 31 July 2022.

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HUGHES HALL

REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 JULY 2022

Hughes Hall Conference Company Ltd is a wholly owned subsidiary of Hughes Hall and its principal activity is delivery of conferences and events. The Directors are all trustees of Hughes Hall.

Chapter Zero Ltd is a company limited by guarantee of which Hughes Hall is the sole member and exercises control over the company. Chapter Zero is therefore a subsidiary of Hughes Hall and its principal activity is engaging industry with the challenges companies face in dealing with climate change. Up to two trustees of Hughes Hall sit on the board of Chapter Zero.

Objectives of the College

The objectives of the College, as set out in our Royal Charter, are to:

• endow, maintain and carry on a college in Cambridge for graduates and for mature-age students qualified to be matriculated in the University of Cambridge; and

• promote education, learning and research in the University of Cambridge and elsewhere.

Public benefit

The College, in conjunction with the University of Cambridge, provides an education for mature undergraduate (aged 21 and above) and postgraduate students, which is recognised internationally as being of the highest standard.

This education develops students academically and advances their leadership qualities and interpersonal skills, and so prepares them to play full and effective roles in society. In particular, the College provides:

• teaching facilities and individual or small-group supervision for undergraduates, as well as pastoral, administrative and academic support for all students through its tutorial and mentoring systems; and

• social, cultural, intellectual, musical, recreational and sporting facilities which enable each of its students to realise their academic and personal potential to the full while studying at the College.

Teaching

The College admits students who have the highest potential for benefiting from the education provided by the College and the University, regardless of their gender or their financial, social, religious or ethnic background.

In 2021/22 Hughes Hall had 15 tutors, each with responsibility for a student group, 9 of the tutors (Governing Body Fellows) typically had a full allocation of students and 6 were Associate Tutors (normally not Governing Body Fellows) with a reduced allocation of students. Tutors are an important source of support, both for regular matters like grant applications, and for occasional difficulties, whether personal, financial, or academic. In addition, tutors read termly supervision reports for their students. Tutors then follow up any issues raised. The tutors meet regularly in term-time, and discuss general issues relating to the student body and any individual issues where their collective wisdom can be of benefit. The tutorial team acts in strict confidence, as is appropriate.

During the 2021-2022 academic year, in-person events resumed. A major part of the College’s strategy over the past year has been to engage widely, to reconnect with each other and to rebuild the academic community - this ties in with meeting our charitable objectives of providing the highest standard of education. Major lectures and/or dinners for students, senior members and invited guests made a welcome return in the following subject areas: Law (Charnley Dinner), Medicine (Zimmern Lecture and Dinner) and Humanities (Berg Rust Lecture). In addition, a senior members symposium and dinner took place with the broad theme ‘Hughes Hall during COVID-19: research, resilience, response’.

Other events in the usual annual cycle resumed, including Postdoc research showcases, the annual 3 Minute Thesis competition, as well as talks to mark important dates such as Holocaust Memorial Day, Black History Month and International Women’s Day.

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REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 JULY 2022

The College’s annual programme of music returned, and all College members, as well as local neighbours, enjoyed the chance to participate in informal musical evenings with repertoires across a wide range of styles. Three popular music cafes were held, at which students and seniors enjoyed sharing their musical talents within a supportive environment. A mindfulness music session was also held for students during Welfare Week.

Research

The College advances research through:

• providing Research Fellowships to outstanding academics in the early stages of their careers, which enables them to develop and focus on their research in this formative period before they undertake the full teaching and administrative duties of an academic post;

• connecting our academic talent with leaders in policy, practice and commerce, and enable lasting solutions to pressing problems through our translational initiative - the Bridge;

• funding and supporting post-doctoral, early career academics in support of our Bridge centres;

• supporting the research work of its students and Fellows by promoting interaction across disciplines, providing facilities for seminars and developing a community of researchers; and

• fostering academic networking by encouraging visits from outstanding academics as Visiting Fellows and Visiting Scholars.

The College maintains a Library (the Edwin Leong Library) which provides a valuable resource for students and Fellows of the College.

Funding

The College funds its activities from academic fees, charges for student accommodation and catering, income from its conferencing business and income from investments and donations. The two most significant ordinary income streams are income from student accommodation of £2.74m (£2.24m in 2020/21) and fees for graduate students of £2.23m (£2.24m in 2020/21). The College received £2.74m (£1.93m in 2020/21) in donations including £0.15m legacy donations (£0.07m in 2020/21).

Structure, Governance and Management

The Governing Body, comprising the President and Fellows, is responsible for the governance of the College; it meets formally twice per term and on other occasions if necessary. The President and Officers are accountable to the Governing Body. The Governing Body is constituted and regulated in accordance with the College statutes and is the body responsible for the strategic direction of the College, and its members are the Charity’s trustees.

The College Council is delegated responsibility by the Governing Body for all matters relating to the administration of the College. The College Council comprises the President, Vice President, Senior Tutor, Bursar, Director of Institutional Advancement (non-voting member), Director of Strategy and the Bridge, seven other members of the Governing Body (the latter each elected by the Governing Body for periods of three years) and the President and Secretary of the Middle Common Room (MCR). The Officers of the MCR participate for Unreserved Business.

Declarations of interest are made systematically at every meeting of Governing Body and Council and at all College Committee meetings.

The College has a number of sub-committees of Governing Body and of Council which are listed in the Governance section of this report. These include Audit Committee and Finance Committee. The responsibilities of Finance Committee include setting the strategy and processes for financial regulation within the College and the Audit Committee is responsible for ensuring that those processes are followed.

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REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 JULY 2022

The College appoints an Academic Convenor who is responsible for establishing a programme of events to enliven the academic life of the College and to build academic links between junior and senior members.

In 2021/22 Hughes Hall had 788 fee-paying students (782 in 2020/21), plus 82 (99 in 2020/21) students no longer paying fees but yet to complete their course by, for example, writing up dissertations. They cover the full range of courses: Bachelors, Masters (and other 1-year postgraduate) and Doctoral courses. Most students were full-time, but 159 (134 in 2020/21) were part-time (MEd, MSt, Executive MBA, part-time MPhil and PhD). For fees purposes the number of students on a full-time equivalent basis was 714 (714 in 2020/21).

Financial and other support

Hughes Hall has several funds to assist students with financial support including funds for Scholarships, Prizes, Hardship and Travel.

Scholarships are administered by the Admissions Committee, and are awards made on academic grounds to applicants to the College. In 2021/22 Hughes Hall allocated awards to nine students to the value of £102,404 (£101,710 in 2020/21) and administered awards to the value of £208,874 (£175,062 in 2020/21) from external benefactors.

In 2021/22 the College awarded prizes for outstanding academic achievement to the value of £5,300 (£8,350 in 2020/21) as follows:

14 x E.M. Burnett Prizes for Distinction in MASt or First Class in LLM/MCL

7 x E.M. Burnett Prizes for First Class final year BA

22 x E.M. Burnett Prizes for First Class in non-final year BA

• 1 x Lowman Prize for Education

10 x Johnston Prizes for Distinction in Masters courses (excluding MAST or LLM/MCL) or for a departmental or national / international prize

Other Funds

Other Funds
Fund	Description	Total £ 2021/22	Total £ 2020/21
Hardship Bursaries	For unforeseen hardship in maintenance and/or accommodation	£11,814	£32,474
Conference Travel	For all postgraduates, and for undergraduates when a course requirement. Generously supported by a benefactor.	£17,022	£4,047
Varsity Sport	For athletes participating in University sports teams	£4,307	£1,249
Language Course Support	For students who study a language other than English alongside their course, normally through the Language Centre’s programme (CULP)	£1,425	£2,010
Innominate Fund	For various financial needs up to £250, e.g. PhD Thesis binding, small hardship.	£2,496	£2,691

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HUGHES HALL

REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 JULY 2022

Fundraising and Alumni Relations

Academic fundraising is mostly about matching ideas with people interested in supporting ideas. At Hughes Hall this means money for people, research and the buildings in which they operate. Graduate environments are unique in the context of Oxbridge colleges in that relationships with alumni are much more tenuous than in traditional undergraduate colleges. The College’s outsize strengths in law and education, along with the growing profile of the Bridge centres, have provided excellent fundraising opportunities as well as a way for alumni to engage with their old college. For the past three years, including two years of pandemic-inspired innovations, the development and alumni relations office has made a difference. We have collectively raised the College’s fundraising performance from the bottom of the college fundraising league tables to the top ten, for three consecutive years.

The College’s Development Office works in partnership with the University of Cambridge on Alumni and Development related activities and with the Cambridge in American team in New York. The annual Alumni Festival became a hybrid event for the 2021 Festival Weekend, which appears to be the way forward during this post-Covid phase. The office normally holds several alumni gatherings throughout the year and around the world including Hong Kong, Singapore and the United States. In 2021/2022 these global get-togethers were conducted virtually, linked in to farewell events upon the retirement of the President. Communications activity continued to engage audiences and followers through updated content on all platforms. We finally had a breakthrough from two very difficult years with a delayed Christmas party held after Easter for a sold-out crowd, the resumption of some of our signature dinners, and welcoming back to College alumni wanting to participate in Formal Halls and to take advantage of overnight accommodation. International events made a welcome return during the summer of 2022, with successful and very well received alumni gatherings taking places in New York, Washington DC, and Paris.

The College has limited developed relationships, both alumni and non-alumni, of a scale that can make a difference to the College’s finances. The priority of the development team therefore remains to grow the College’s major gifts and to work on improving organisational systems and processes, growing the regular giving programme, enhancing donor stewardship and seeking engagement with donor prospects interested in research and subject areas that are academic and research priorities of the College.

The funds raised during the 2021-22 academic year focused on funding for Scholarships and Bursaries, as well as unrestricted support for general College needs. The College received an endowment from The Tai Hung Fai Charitable Foundation of £1 million for the Edwin Leong Scholarship in Life Sciences. The Centre for Climate Engagement received a major grant from the Children’s Investment Fund Foundation (CIFF) of £2.27 million, and the number of alumni donors continues to grow. The first post-pandemic fundraising road show took place in June 2022 meeting a number of potential supporters for DEFI in the USA.

The College is registered with the Fundraising Regulator. The College does not use external professional fundraisers or commercial participators and carries out fundraising activities, primarily through its Development Office, in collaboration with Cambridge University Development and Alumni Relations office as appropriate. The College pursues a traditional approach to fund-raising, seeking alumni participation through regular giving schemes and approaches to donor prospects for supporting research-led initiatives in the College. In addition to seeking financial and other support for the College, the Development Office is also responsible for broader alumni relations.

Techniques used include face to face fundraising by private meeting, the promotion of legacy giving, telephone campaigns to members of the College’s community and opportunities for online giving via the website. Training is given to all individuals who undertake fundraising activities to ensure that they know how to handle an obviously vulnerable person and to protect vulnerable people and the wider public from unreasonably intrusive, persistent methods or undue pressure. There have been no formal complaints made about fundraising.

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HUGHES HALL

REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 JULY 2022

Income and Expenditure

For the financial year from 1 August 2021 to 31 July 2022 the Group recorded a surplus of £2.42m (£3.98m in 2020/21). Total income was £7.94m (£6.49m in 2020/21) before donations and legacies of £2.74m (£1.93m in 2020/21) and Colleges Grant of £1.20m (£1.09m in 2020/21). A new endowment of £1.05m received from 2 donors towards scholarships.

Within the £7.94m, income from academic fees and charges increased to £4.02m as at 31 July 2022 (£3.68m as at 31 July 2021) predominately due to the unprecedented 10% increase in the graduate fee per capita as well as a slight increase in student numbers. Income from accommodation and catering for College Members increased to £3.11m (£2.35m in 2020/21) as a result of Covid restrictions relaxing allowing accommodation bookings to recommence. Income from accommodation and catering for Conference guests increased to £0.32m (£0.01m in 2020/21) mainly from summer schools taking place in July 2022. There was £0.50m in investment and other income (£0.46m in 2020/21).

Ordinary expenditure during the year was £8.45m (£6.18m in 2020/21) which included a £0.48m (£0.48m in 2020/21) charge for depreciation. Capital funding costs of £0.73m (£0.83m in 2020/21) were all interest costs. Within the £8.45m (£6.18m in 2020/21) expenditure there were staff costs of £3.86m at 31 July 2022 (£2.85m at 31 July 2021).

	2022 Total		2021 Total
	£		£
Ordinary Income	7,938,792		6,487,588
Ordinary Expenditure	(8,454,007)		(6,181,945)
Surplus on ordinary income	(515,215)		305,643
Donations received including legacy	2,739,020		1,931,898
New endowment	1,047,763		0
Capital Grant from Colleges Fund	1,203,000		1,088,000
Funding costs	(726,431)		(826,169)
Chapter Zero	(374,953)		(258,688)
Effect of other gains, losses and charges	(951,901)		1,734,567
Total comprehensive income for the year	2,421,283		3,975,251

Endowment and investment performance

The College’s Investment Policy aims to protect the values of the portfolios in real terms by striking a balance between the interests of the present members of the College and future generations, whilst supporting the strategic vision of the College for its growth and expansion.

The investment portfolio is monitored and reviewed by the College’s Investments Committee, which includes in its membership Fellows and others with significant investment management expertise.

As at July 2022, the College held investments in two financial investment portfolios, the Long Term Fund and Estates Development Fund, which are managed by its investment managers, Cazenove Capital, part of the Schroders Group.

The Estates Development Fund is to be invested in assets with a high degree of capital preservation, of minimum risk and highly liquid as they are expected to be required by the College within the next five years to finance a major strategic development. The Long-Term Fund comprises the other College investment funds to be invested on a longterm basis with the aim of growing its value in real terms over the medium term with risk reduced through diversification within agreed range parameters.

The College held £39.13m (£34.86m in 2020/21) of investments, including an investment property purchased in July 2021, and £1.32m (£2.11m in 2020/21) in cash and cash equivalents.

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HUGHES HALL

REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 JULY 2022

The Long-Term Fund was valued at £9.20m on 31 July 2022 and is invested as permanent capital. The investment managers have been set a target of Total Return of CPI +3.5%, over a rolling five-year period. The return on investment for the year was -3.5%, against the target of 13.6% (CPI +3.5%), with volatile equity markets the key reason for the performance (£8.49m in 2020/21).

The Estates Development Fund was valued at £19.16m (£15.62m in 2020/21) on the 31 July 2022. The managers measure the fund’s performance against cash rates, with the key performance metric of beating inflation.

Total funds held by Cazenove at 31 July 2022 were £38.46m (£34.19m in 2020/21), including £10m (£10m in 2020/21) in Blackrock Sterling Fund from monies raised through a private placement in 2019.

Cazenove maintains a Socially Responsible Investment policy, conducting research into the social, environmental, ethical and corporate governance stance of the companies selected for investment and rating individual firms.

Capital Expenditure

The College is actively seeking to improve its provision for accommodating students, with regular capital expenditure projects improving the quality of accommodation and social spaces provided.

In the summer of 2022, the College carried out renovations of its Centenary Building. Bathrooms were updated to modernise facilities whilst internal decoration and flooring updates continued the College’s improvement of the student environment.

During the financial year, the College had 363 rooms available for students to rent, 276 (including 12 flats/studios) were in buildings on the central College site surrounding the cricket field, 87 (including 1 family house) were in houses or developments owned or managed by the College, located in residential streets in the local area.

Reserves Policy

As the College intends to continue to pursue its objectives in perpetuity, it views its investments strategically over the long term. The principal aim is to protect and maintain the real value of its endowment capital, and to continue to increase its unrestricted funds and reserves as much as possible over that extended period, whilst seeking an equitable funding balance between the interests and aspirations of present members and those yet to come, and the retention of an ability to cope with sudden unforeseen financial upheavals and opportunities. This aim has proven very valuable during the recent pandemic, during which the College has continued to monitor and manage its reserves closely.

The College has a policy of holding sufficient free reserves which are readily available in case of a revenue shortfall or other need for liquidity, and which therefore are invested in liquid assets within the College’s overall investment portfolio. The policy target for free reserves is to be an amount broadly equivalent to six month’s operational spend, currently £2.55m.

The College’s level of liquid reserves has satisfied this target at all times during the previous three years. The value of the College’s free reserves at 31 July 2022 was £7.16m after deducting endowment and restricted funds, and reserves committed to operating and fixed assets (£5.6m in 2020/21).

Remuneration Policy

No Trustee receives any remuneration, or any other benefit, for acting as a trustee of the College. Trustees only receive out-of-pocket expenses, incurred in the course of carrying out their duties as trustees. Outside of their role as a Trustee of the College, the President and any Fellow of the College may receive such remuneration and any other benefits in respect of any employment, or College Office or College Post, or other post or appointment, as the College’s Ordinances authorise.

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REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 JULY 2022

The College has a Remuneration Committee comprised of five non-conflicted trustees, which acts as an independent advisory body to the Governing Body. The Remuneration Committee is charged with the scrutiny and management of College policies on remuneration and benefits payable to the President and Fellows of the College. The Remuneration Committee makes recommendations to the Governing Body in respect of:

• (a) remuneration and benefit policies;

• (b) salary and stipend scales;

• (c) honoraria, including bonuses;

• (d) terms and conditions of employment; and

• (e) any scheme of allowances and benefits.

Details of remuneration for key management personnel are outlined in Note 9. Details of related party transactions with Trustees are outlined in Note 29.

Principal risks and uncertainties

The Governing Body as charity trustees has a responsibility to monitor, disclose and where feasible manage the major risks and uncertainties facing the College. The College monitors these risks by maintaining a Risk Register, which identifies the College’s key risks, documents the controls used to mitigate their impact and/or likelihood, and at each review, records the additional mitigating actions which have taken place. The risks are reviewed at least termly and the Risk Register heat map, a visual representation of risk status and direction of travel, is updated to show any significant change in risk, whether rising or falling. The Risk Register is reviewed at each meeting of the Audit Committee, who report to the Governing Body and at each meeting of the Finance Committee, who report to Council.

The most significant risks at present relate to recovery post-Covid and economic pressures linked to the war in Ukraine:

• student welfare issues, stemming from the impact of Covid and the uncertain global outlook, causing a decline in mental wellbeing;

• increases in costs (logistics, food and raw materials costs) resulting from the global impact of Covid-19, the UK’s departure from the European Union and the war in Ukraine;

• steep rises in energy costs increasing the College’s operational running costs;

• increases in inflation and cost-of-living affecting student numbers and reducing the College’s growth;

• movements in investment markets reducing the value of the investment assets;

• conferencing and catering operations negatively affected by food costs, alongside potential longer-term changes to the College’s conferencing business model post-Covid;

• an uncertain economic and financial environment putting pressure on the College’s ability to raise development funds; and

• health and safety risks within the College community due to the prevalence of Covid coupled with the impact of a severe winter flu strain; re-emergence of a vaccine-resistant strain of the Covid virus.

The following areas of institutional risk are being actively monitored by the College’s Committees, and any identified rising risks reported at Council and Governing Body meetings.

• People – Inadequate student welfare provision impacting the wellbeing of the student body and negatively affecting the College’s reputation;

• Education – changes to the balance of membership (graduate/undergraduate) impacting both fee income and resource expenditure;

• Estate – reduction in income impacting Estates maintenance reserves with health and safety and capital cost implications;

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REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 JULY 2022

• Financial Sustainability – current economic climate with continued levels of inflation increasing the College’s costs base, presenting challenges to existing College operations and future development plans; operational income and expenditure imbalances affecting covenant thresholds;

• Environmental - insufficient progress in carbon reduction initiatives resulting in projected failure to meet the zero carbon 2038 target, impacting energy expenditure and student trust and engagement; and

• IT infrastructure– increased risks associated with cyber security, threatening College operation.

Progress made against plans during the year

During the year the College continued to develop its distinctive academic profile by expanding the Bridge initiative, which leverages the College’s multi-disciplinary perspective, international nature and external focus to bring the research and expertise of its academic community to solve real world problems. The strength of this unique approach was acknowledged in two major grants, from IKEA Foundation and Children’s Investment Fund Foundation (CIFF), awarded to the Centre for Climate Engagement.

In the knowledge that the College’s President, Dr Anthony Freeling, was to finish his term of office in September 2022, the Governing Body embarked upon a recruitment exercise to find a successor and is pleased to report that following a rigorous search process, Sir Laurie Bristow was duly elected and subsequently appointed as the next President of the College, from 1 October 2022 for an eight year term.

The College invested in improvements to the student experience, enhancing welfare and wellbeing support, including the introduction of a College Counsellor in April 2022, and reducing tutorial load to enable each student to receive more pastoral support. The College continued to engage with University initiatives, notably the Access and Participation plan for widening access, the Strategic Review of Admissions and Outreach, the Review of Mental Health Provision and the Size and Shape review.

The College made significant progress on its masterplan for infrastructure developments over the next decade. The Governing Body completed an architectural competition in February 2022 and appointed an architect for the masterplan. This appointment, alongside private placement funding secured in 2018/19 and the College’s liquid funds, will ensure the College can expedite decisions and maximise opportunities to develop a physical infrastructure to match its aspirations for the future. Sustainability continues to be at the forefront of decision-making within large capital projects and the masterplan further supports this commitment by embedding sustainability in not only the operation but also the design and construction of any new buildings.

The importance of engaging all members and staff of the College in rebuilding our community was key to operational decisions made during the year. Staff were supported through hybrid working arrangements and investment was made to increase IT support. The Governing Body had previously decided to match, for its permanently employed staff, pay rates set by the Living Wage Foundation, excluding other benefits provided to employees of the College and this arrangement has continued. The College will continue to keep its pay policy under regular review, taking account of local and national recruitment conditions and requirements.

Responding to COVID-19

This academic year, students were fully in residence and College operations unaffected by national lockdowns for the first time since 2019-2020. The College’s plans to deal with a virus re-emergence, including processes to safeguard our students and a flexible working week to support our staff, meant a renewed sense of hope for a full return to ‘normality’.

However, the pandemic continued to impact our community. The increase in staff over the last two years impacted office space as staff returned to working in College. The Tutorial team’s weekly Welfare and Student Finance meetings, providing access to hardship funds to aid those in difficulties, saw a sharp increase in the number and size of requests. Our expanding team of Tutors and Associate Tutors worked closely with relevant health professionals and the University Counselling Service to ensure our students could access support for their mental wellbeing, whilst increased staff in the Tutorial Office enhanced administration across our undergraduate and postgraduate cohorts.

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REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 JULY 2022

There was also ongoing financial impact from the pandemic. The principal detriments up to 31 July 2022 were the reduction of bed and breakfast income during August 2021 and July 2022. The significant proportion of funds being held as cash reduced the potential impact on endowment assets during market turbulence.

The key concerns going forward are rises in inflation and cost of living affecting student applications and College operations, sustained economic pressure linked to the war in Ukraine and the possibility of a recession in the UK.

Plans for the future

Hughes Hall’s purpose is to improve society worldwide through excellent teaching and research, bridging the academic and external worlds, and foster an interdisciplinary environment that is global in outlook, egalitarian in ethos and cosmopolitan in character.

To achieve this, we shall continue to:

1. Foster an interdisciplinary, inspirational and inclusive environment for our members;

2. Support mature undergraduate and postgraduate students in achieving their potential through personalised teaching, mentoring, welfare and funding; and

3. Connect our academic talent with leaders in policy, practice and commerce, and enable lasting solutions to pressing problems through our translational initiative - the Bridge.

The College plans to ensure that its physical infrastructure matches and facilitates its aspirations. This will require acquiring additional land and constructing new buildings that will provide more student accommodation, more spaces for teaching and supervisions, public spaces and further provision of study rooms for Fellows. We shall be looking to finance these new initiatives through a combination of long-term borrowing, continued control of our costs and by launching a new fund-raising campaign.

In the short term, the College will provide the best possible student education and experience under variable approaches to social distancing, while operating within our means, being prepared to open up more and faster if there are no serious recurrences of Covid-19 disruption. The agenda for the year will focus on four cross-departmental initiatives:

1. Managing risks arising from the Covid-19 pandemic;

2. Accelerating the programme of action to enhance equality and diversity across the College;

3. Implementing the College’s Carbon Reduction Policy; and

4. Continuing with Estate Development plans, pushing for early land purchase.

These will be supported by the departmental agenda priorities:

• Academic Develop a distinctive academic profile for the College as it continues to grow, based on translation of research into practice in our focus areas, building on previous initiatives to attract, develop and support all members of the academic community;

• Bursarial Deliver operational resilience, executional capability, financial strength as well as strategic adaptability and versatility. We will achieve this by building on recent changes to instil a culture of excellence, cost effectiveness and continuous improvement in all aspects of our operations;

• Development Raise £200,000 in unrestricted funds annually and at least £1m during the year for our fundraising priorities and launching a specific new buildings fundraising appeal;

• Communications The College continues to be less well-known and its strengths less recognised than the reality it deserves. The primary objective is to continue our efforts to correct this imbalance. We want to make Hughes Hall the most sought-after graduate college in Cambridge;

• The Bridge Continue to develop the Bridge’s reach and impact, while consolidating its governance.

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HUGHES HALL

REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 JULY 2022

Corporate Governance

1. The following statement is provided by the Governing Body 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 1137471) and subject to regulation by the Charity Commission for England and Wales. The members of the Governing Body are the charity trustees and are responsible for ensuring compliance with charity law.

3. The Governing Body members are advised in carrying out their duties by a number of Committees, all of which meet at least twice per academic year:

Admissions Committee Audit Committee Bridge Committee CCE Oversight Committee DEFI Oversight Committee Development Strategy Group Estates Committee Fellowships Committee Finance Committee Governance Committee House Committee Investments Committee Presidential Search Committee ( temporary committee, ending February 2022 ) Prevent Committee Remuneration Committee Staff Strategy Committee

1. The principal officers of the College for the period are the President, the Bursar and the Senior Tutor.

2. It is the duty of the Audit Committee to keep under review the effectiveness of the College’s internal systems of financial and other controls; to advise the Governing Body on the appointment of external and internal 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 Governing Body. Membership of the Audit Committee consists of Mr N Brown, Dr M Bellamy, Dr P Dudley, Prof W Irish, Dr K Sengupta, Mr W Charnley, Mrs L Powers-Freeling and Dr J Chan.

3. There are Registers of Interests of Trustees, the Finance Committee and of the Audit Committee and other key personnel. Declarations of interest are made systematically at each of the meetings listed above.

4. The College’s Trustees during the year ended 31 July 2022 are set out on page 3.

Statement of Internal Control

1. Governing Body 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 systems of internal control are designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. This process was in place for the year ended 31 July 2022 and up to the date of approval of the financial statements.

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REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENDED 31 JULY 2022

1. Governing Body is responsible for reviewing the effectiveness of the system of internal control.

2. Governing Body’s review of the effectiveness of the system of internal control is informed by the work of the various Committees, the Bursar, and other 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.

3. The College’s system of internal financial control is based on a framework of regular management information and administrative procedures including the segregation of duties and a system of delegation and accountability. In particular, it includes:

4. comprehensive budgeting and monitoring systems with an annual budget and periodic financial reports which are reviewed by the Finance Committee on behalf of Council;

5. regular reviews by the Council of reports which indicate financial performance against the forecasts and of major purchase plans, capital works and expenditure programmes;

6. setting targets to measure financial and other performance;

7. clearly defined purchasing (asset purchase or capital investment) guidelines;

8. delegation of authority and segregation of duties; and

9. identification and management of risks.

Responsibilities of the Governing Body

Governing Body 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 members of Governing Body are 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.

Governing Body 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.

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

Mr Jonathan Newby Bursar Member of College Council and Governing Body Date: 30 November 2022

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HUGHES HALL

REPORT OF THE INDEPENDENT AUDITORS TO THE GOVERNING BODY OF HUGHES HALL FOR THE YEAR ENDED 31 JULY 2022

Opinion

We have audited the financial statements of Hughes Hall (the ‘College) and its subsidiaries (the Group) for the year ended 31 July 2022 which comprise the Consolidated Statement of Comprehensive Income and Expenditure, the Consolidated Statement of Changes in Reserves, the Consolidated and College Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the Group’s and College’s affairs as at 31 July 2022 and of its incoming

• resources

• and application of resources for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 Group or College's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant

sections of this report.

Other information

The Governing Body is responsible for the other information. The other information comprises the information included in the Annual Report of the Trustees other than the financial statements and our auditors’ report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

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REPORT OF THE INDEPENDENT AUDITORS TO THE GOVERNING BODY OF HUGHES HALL (continued) FOR THE YEAR ENDED 31 JULY 2022

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and College and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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 Governing Body

As explained more fully in the responsibilities of the Governing Body statement set out on page 16, the Governing Body are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governing Body determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Governing Body are responsible for assessing the Group’s and 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 Group or College or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

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

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

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

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

• we identified the laws and regulations applicable to the Group 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 Group and how the Group is complying with that framework;

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HUGHES HALL

REPORT OF THE INDEPENDENT AUDITORS TO THE GOVERNING BODY OF HUGHES HALL (continued) FOR THE YEAR ENDED 31 JULY 2022

• we obtained an understanding of the Group’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance;

• we identified which laws and regulations were significant in the context of the Group; 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 Group and the College’s ability to operate or to avoid material penalty; and

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

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

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

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

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

• tested journal entries to identify unusual transactions;

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

• investigated the rationale behind significant or unusual transactions.

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

• agreeing financial statement disclosures to underlying supporting documentation;

• reviewing minutes of meetings of those charged with governance;

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

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees 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: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-theaudit-of-the-fi/description-of-the-auditor’s-responsibilities-for. This description forms part of our auditors’ report.

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HUGHES HALL

REPORT OF THE INDEPENDENT AUDITORS TO THE GOVERNING BODY OF HUGHES HALL (continued) FOR THE YEAR ENDED 31 JULY 2022

Use of our report

This report is made solely to the College’s Governing Body as a body, in accordance with College’s statutes, the Statutes of the University of Cambridge and the Charities Act 2011. Our work has been undertaken so that we might state to the Governing Body those matters we are required to state to them in an Auditors’ Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the College and the College’s Governing Body as a body, for our audit work, for this report, or for the opinions we have formed.

PETERS ELWORTHY & MOORE

Chartered Accountants and Statutory Auditors

Salisbury House Station Road Cambridge CB1 2LA

Date: 16 December 2022

Peters Elworthy & Moore is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006..

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HUGHES HALL

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES FOR THE YEAR ENDED 31 JULY 2022

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 (FRS102) and the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education issued in 2019.

The Statement of Comprehensive Income and Expenditure includes activity analysis in order to demonstrate that all fee income is spent for educational purposes. The analysis required by the SORP is set out in note 8.

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

The functional and presentational currency of the College is GBP. The level of rounding applied is to the nearest £.

Going concern

Students have returned to the College at the start of the new academic year and the majority of College activities have resumed with conference activity rising to pre-Covid levels.

The Trustees have prepared a budget for the duration of 2022/23 and cashflow forecasts for the period beyond the end of the financial year which have been stress tested based on a number of assumptions. They have considered the impact upon the College and its cash resources and unrestricted reserves. The College also has significant investments which could be realised if required.

Based upon their review the Trustees believe that the Group will have sufficient resources to meet its liabilities as they fall due for the foreseeable future and therefore have continued to adopt the going concern basis in preparing the financial statements

Basis of accounting

The financial statements have been prepared under the historical cost convention, modified in respect of the treatment of investments which are included at valuation.

Basis of consolidation

The consolidated financial statements include the College and its subsidiary undertakings. Details of the subsidiary undertakings included are set out in note 27. Intra-group balances are eliminated on consolidation.

The Group assets show a lower level of reserves compared to the College as the latter includes administrative charges payable by its subsidiary Hughes Hall Ltd.

Recognition of income

Income is recognised in the statement of financial activities (SoFA) when a transaction or other event results in an increase in the charity’s assets or a reduction in its liabilities. Income must only be recognised in the accounts of a charity when all of the following criteria are met:

• Entitlement – control over the rights or other access to the economic benefit has passed to the charity;

• Probable – it is more likely than not that the economic benefits associated with the transaction or gift will flow to the charity;

• Measurement – the monetary value or amount of the income can be measured reliably and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

Academic fees

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

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HUGHES HALL

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) FOR THE YEAR ENDED 31 JULY 2022

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. Charitable donations are recognised on receipt or when the College is entitled to the income and the value can be measured reliably. 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.

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; and

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

In 2021/22, Hughes Hall operates a Total Return investment accounting policy for the Long Term Fund. The College allocated a proportion of the investment earnings, net of expenses, and capital appreciation, to the income and expenditure account each year. The allocation of income is determined by a spending rule set by the College, calculated as 3% of the average Total Market Value of the Long Term fund over the previous 5 financial years.

Other income

Income is received from a range of activities including accommodation, catering conferences and other services rendered and is recognised in the period in which the goods or services are delivered.

Legacy accounting policy

For legacies, entitlement is taken as the earlier of the date of which either: the College is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the College has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the College, or the College is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

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STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) FOR THE YEAR ENDED 31 JULY 2022

Cambridge Bursary Scheme

In 2021-22, payment of the Cambridge Bursaries to eligible students was made directly by the Student Loans Company (SLC). The College reimbursed the SLC for the full amount and the University of Cambridge and other Colleges paid their shares to the College.

Each College shows the gross payment made to eligible students within education expenditure and the contribution from the University and other Colleges as income within academic fees and charges.

The net payment of £47,259 is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows:

Income (see note 1) £295,763 Expenditure £343,022

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 1 August 2014, the date of 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 of 70 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.

The cost of additions to operational property shown in the balance sheet includes the cost of land. Furniture, fittings and equipment costing less than £2,000 per individual item or group of related items is written off in the year of acquisition. All other assets are capitalised and depreciated (on a straight line basis) over their expected useful life as follows:

Furniture and fittings 20.0% per annum Kitchen equipment 12.5% per annum Computer equipment 20.0% per annum

Leased assets

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

Heritage assets

The College holds and conserves a number of collections, exhibits, artefacts and other assets of historical, artistic or scientific importance. Heritage assets acquired before 1 August 2014 have not been capitalised since reliable estimates of cost or value are not available on a cost-benefit basis. There have been no assets acquired or gifted since this date.

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STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) FOR THE YEAR ENDED 31 JULY 2022

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.

Debtors

Short term debtors are measured at transaction price, less impairment.

Cash and Cash Equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors

Short term creditors are measured at the transaction price.

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.

24

HUGHES HALL

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) FOR THE YEAR ENDED 31 JULY 2022

Financial assets

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

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

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

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

Financial Liabilities

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

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

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

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

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.

25

HUGHES HALL

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) FOR THE YEAR ENDED 31 JULY 2022

Taxation

The College is a registered charity (number 1137471) 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.

Under the current rules of the scheme, Hughes Hall has always been a net recipient and not contributor.

Pension costs

Universities Superannuation Scheme (USS)

Significant accounting policies : The institution 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.

Critical accounting judgements : 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 industrywide 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) with the resulting expense charged through the profit or loss account in accordance with section 28 of FRS 102. The directors 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 recovery plan in existence at the date of approving these financial statements.

Cambridge Colleges Federated Pension Scheme (CCFPS)

The College participates in the Cambridge Colleges Federated Pension Scheme, a defined benefit scheme. There are no current members of staff in the scheme. Pension costs are assessed in accordance with the advice of the actuary, based on the latest actuarial valuation of the Scheme and are accounted for on the basis of providing pensions over the period during which the College benefits from the employees’ services.

26

HUGHES HALL

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) FOR THE YEAR ENDED 31 JULY 2022

Other pension schemes

The College also operates a defined contribution pension scheme for 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.

Critical accounting estimates and areas of judgement

The preparation of the College’s accounts requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. These judgements, estimates and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results.

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

Income recognition – Judgement is applied in determining the value and timing of certain income items to be recognised in the accounts. This includes determining when performance related conditions have been met and determining the appropriate recognition timing for donations, bequests and legacies. In general, the later are recognised when at the probate stage.

Useful lives of property, plant and equipment – Property, plant and equipment represent a significant proportion of the College’s total assets. Therefore, the estimated useful lives can have a significant impact on the depreciation charged and the College’s reported performance. Useful lives are determined at the time the asset is acquired and reviewed regularly for appropriateness. The lives are based on historical experiences with similar assets, professional advice and anticipation of future events. Details of the carrying values of property, plant and equipment are shown in note 10.

Recoverability of debtors – The provision for doubtful debts is based on the College’s estimate of the expected recoverability of those debts. Assumptions are made based on the level of debtors which have defaulted historically, coupled with current economic knowledge. The provision is based on the current situation of the customer, the age profile of the debt and the nature of the amount due.

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

Management are satisfied that Universities Superannuation Scheme meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the funding plan in existence at the date of approving the accounts.

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

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.

27

HUGHES HALL

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE FOR THE YEAR ENDED 31 JULY 2022

FOR THE YEAR ENDED 31 JULY 2022
Note Income Academic fees and charges 1 Accommodation, catering and conferences 2 Investment income Endowment return transferred 3 3 Other income 4 Total income before donations and endowments Donations Legacy Donations New Endowments Capital grant from Colleges Fund Total income Expenditure Education 5 Accommodation, catering and conferences 6 Other expenditure 7 Total expenditure 8 Surplus/(deficit) before other gains and losses Gain on investments 11 Surplus for the year Other comprehensive income Actuarial (loss) / gain in respect of pension schemes 17 Total comprehensive income for the year	2022 Unrestricted Restricted Endowment Total £ £ £ £ 3,699,741 317,873 - 4,017,614 3,424,323 - - 3,424,323 247,452 175,972 2,160 54,493 91,810 (230,465) 341,422 - 151,608 3,825 - 155,433 7,699,096 378,351 (138,655) 7,938,792 249,164 2,336,629 - 2,585,793 153,227 - - - - 1,047,763 153,227 1,047,763 1,203,000 - - 1,203,000 9,304,487 2,714,980 909,108 12,928,575 4,100,055 1,141,424 2,500 5,243,979 3,006,682 - - 3,006,682 369,573 898,967 36,190 1,304,730 7,476,310 2,040,391 38,690 9,555,391 1,828,177 674,589 870,418 3,373,184 (625,683) (12,089) (306,446) (944,218) 1,202,494 662,500 563,972 2,428,966 (7,683) - - (7,683) 1,194,811 662,500 563,972 2,421,283	2021
		Unrestricted £ 3,400,589 2,353,073 183,951 164,561 179,751	Restricted Endowment Total £ £ £ 275,359 - 3,675,948 - - 2,353,073 2,269 53,133 81,438 (217,694) 267,658 - 11,158 - 190,909
		6,281,925 171,827 74,547 1,088,000	341,919 (136,256) 6,487,588 1,685,524 - 1,857,351 - - 74,547 - - 1,088,000
		7,616,299	2,027,443 (136,256) 9,507,486
		3,184,361 2,315,636 435,115	681,948 - 3,866,309 - - 2,315,636 617,090 32,652 1,084,857
		5,935,112	1,299,038 32,652 7,266,802
		1,681,187	728,405 (168,908) 2,240,684
		320,790 18,640 1,340,042 1,679,472
		2,001,977 747,045 1,171,134 3,920,156
		55,095 - - 55,095
		2,057,072 747,045 1,171,134 **3,975,251 **

The notes on pages 31 to 48 form part of these accounts.

28

HUGHES HALL

STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 JULY 2022

Group Balance at 1 August 2021 Surplus from income and expenditure statement Other comprehensive income Balance at 31 July 2022 College Balance at 1 August 2021 Surplus from income and expenditure statement Other comprehensive income Balance at 31 July 2022 Group Balance at 1 August 2020 Surplus from income and expenditure statement Other comprehensive income Balance at 31 July 2021 College Balance at 1 August 2020 Surplus from income and expenditure statement Other comprehensive income Balance at 31 July 2021	Income and expenditure reserve Unrestricted Restricted Endowment Total £ £ £ £ 41,994,706 1,885,600 7,897,998 51,778,304 1,202,494 662,500 563,972 2,428,966 (7,683) - - (7,683)
	43,189,517 2,548,100 8,461,970 54,199,587
	Income and expenditure reserve Unrestricted Restricted Endowment Total £ £ £ £ 42,320,685 1,620,262 7,897,998 51,838,945 1,481,174 918,371 563,972 2,963,517 (7,683) - - (7,683)
	43,794,176 2,538,633 8,461,970 54,794,779
	Income and expenditure reserve Unrestricted Restricted Endowment Total £ £ £ £ 39,937,634 1,138,555 6,726,864 47,803,053 2,001,977 747,045 1,171,134 3,920,156 55,095 - - 55,095 41,994,706 1,885,600 7,897,998 51,778,304 Income and expenditure reserve Unrestricted Restricted Endowment Total £ £ £ £ 40,381,781 986,202 6,726,864 48,094,847 1,883,809 634,060 1,171,134 3,689,003 55,095 - - 55,095 42,320,685 1,620,262 7,897,998 51,838,945

The notes on pages 31 to 48 form part of these accounts.

29

HUGHES HALL

CONSOLIDATED AND COLLEGE BALANCE SHEET AS AT 31 JULY 2022

Note Non-Current Assets Fixed assets 10 Investments 11 Total non-current assets Current Assets Stocks 12 Trade and other receivables 13 Cash and cash equivalents 14 Total current assets Creditors: amounts falling due within one year 15 Net current assets/(liabilities) Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Provisions Pension provisions 17 Total net assets Restricted reserves Income and expenditure reserve – endowment reserve 18 Income and expenditure reserve – restricted reserve 19 Unrestricted Reserves Income and expenditure reserve – unrestricted Total Reserves	2022 Consolidated £ 36,034,516 39,130,734 75,165,250 21,263 665,028 1,317,925 2,004,216 (2,166,574) (162,358) 75,002,892 (20,309,731) (493,574) 54,199,587 8,461,970 2,548,100 11,010,070 43,189,517 54,199,587	2022 College £ 36,476,526 39,130,734 75,607,260 21,263 919,892 1,143,481 2,084,636 (2,093,812) (9,176) 75,598,084 (20,309,731) (493,574) 54,794,779 8,461,970 2,538,633 11,000,603 43,794,176 54,794,779	2021 Consolidated £ 36,423,245 34,857,424 71,280,669 15,564 756,669 2,111,672 2,883,905 (1,584,712) 1,299,193 72,579,862 (20,489,370) (312,188) 51,778,304 7,897,998 1,885,600 9,783,598 41,994,706 51,778,304	2021 College £ 36,864,711 34,857,424
				71,722,135
				15,564 896,431 1,562,367
				2,474,362
				(1,555,994)
				918,368
				72,640,503 (20,489,370) (312,188)
				51,838,945
				7,897,998 1,620,262
				9,518,260 42,320,685
				51,838,945

The accompanying notes on pages 31 to 48 are an integral part of this balance sheet.

The financial statements were approved by the Governing Body on 30[th] November 2022 and signed on their behalf by:

Mr Jonathan Newby Bursar Member of College Council and Governing Body

30

HUGHES HALL

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2022

Note Net cash inflow from operating activities 21 Cash flows from investing activities 22 Cash flows from financing activities 23 (Decrease)/Increase in cash and cash equivalents in the year Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year 14	2022 2021 £ £ 5,077,439 2,865,866 (4,969,508) (2,062,871) (901,678) (900,840)
	(793,747) (97,845)
	2,111,672 2,209,517
	1,317,925 2,111,672

The notes on pages 31 to 48 form part of these accounts.

31

HUGHES HALL

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

1 Academic fees and charges Colleges fees: Fee income received at the regulated undergraduate rate Fee income received at the unregulated undergraduate rate Fee income received at the graduate rate Other income: Research Fellow Support (funded through donations) Bursaries (Cambridge Bursary Scheme and other donations) Teaching and Other Income Total 2 Income from accommodation, catering and conferences Accommodation College members Conferences Catering College members Conferences Total 3 Endowment return and investment income	2022 £ 524,373 945,437 2,229,931 3,699,741 39,368 248,505 30,000 4,017,614 2022 £ 2,735,385 219,652 373,177 96,109 3,424,323	2021 £ 428,219 723,490 2,246,160
		3,397,869 33,486 241,873 2,720
		3,675,948
		2021 £ 2,236,444 5,408 110,302 919
		2,353,073

The Total Return investment accounting policy only applies to the Long Term Fund

3a Analysis of Endowment income Total return contribution (see note 3b) Land and buildings Quoted securities Income from short-term investments Other investment income Total 3b Summary of total return Income from: Quoted and other securities and cash Gains/(losses) on endowment assets: Quoted and other securities and cash Investment management costs (see note 3c) Total return for the year Total return transferred to income and expenditure reserve (see note 3a) Unapplied total return for year included within Statement of Comprehensive Income and Expenditure (see note 20)	2022 £ 230,465 32,510 186,856 28,086 2,160 480,077 2022 £ 91,810 (344,490) (36,190) (288,870) (230,465) (519,335)	2021 £ 217,694 11,501 169,930 2,520 2,269
		403,914
		2021 £ 81,438 1,402,346 (32,652)
		1,451,132 (217,694)
		1,233,438

32

HUGHES HALL

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

3c Investment management costs Quoted securities – equities including in Total return Quoted securities - equities Total 4 Other Income Project Admin Recovery Miscellaneous Income Job retention scheme grant Chapter Zero Total All job retention scheme grant income has been used for wages and 5 Education expenditure Teaching Tutorial Admissions Research Scholarships and awards Other educational facilities Total		2022 £ 36,190 55,140 91,330 2022 £ 73,722 71,694 6,192 3,825 155,433 salaries. 2022 £ 1,299,270 910,289 962,755 1,206,007 456,388 409,270 5,243,979	2021 £ 32,652 52,158
			84,810
			2021 £ 30,444 17,180 132,126 11,159
			190,909
			2021 £ 1,675,551 432,426 201,686 692,299 700,751 163,596
			3,866,309

33

HUGHES HALL

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

6 Accommodation, catering and conferences expenditure Accommodation College members Conferences Catering College members Conferences Total 7 Other Expenditure Loan Interest Bond Interest Other Expenditure including USS Chapter Zero Total	2022 £ 2,401,769 192,863 327,663 84,387 3,006,682 2022 £ 26,505 191,424 711,848 374,953 1,304,730	2021 £ 1,904,382 746 357,857 52,651
		2,315,636
		2021 £ 93,244 637,209 95,716 258,688
		1,084,857

8a Analysis of 2021/22 expenditure by activity

Education (Note 5) Accommodation, catering and conferences (Note 6) Other (Note 7) Totals	Staff costs (Note 9) £ 2,428,224 1,134,549 297,484 3,860,257	Other operating expenses £ 2,671,382 1,535,264 1,006,390 5,213,036	Depreciation £ 144,373 336,869 856 482,098	Total £ 5,243,979 3,006,682 1,304,730
				9,555,391

Expenditure includes fundraising costs of £237,504 (2021: £212,840). This expenditure does not include £82,520 (2021: £75,529) towards the costs of alumni relations.

8b Analysis of 2020/21 expenditure by activity

Staff costs (Note 9) £ Education (Note 5) 1,552,680 Accommodation, catering and conferences (Note 6) 1,301,309 Other (Note 7) Totals 2,853,989 8c Auditors’ remuneration Other operating expenses include: Audit fees payable to the College’s external auditors Other fees payable to the College’s external auditors	Other operating expenses £ 2,313,629 530,094 1,084,857 3,928,580		Depreciation £ - 484,233 - 484,233 2022 £ 23,100 2,809 25,909	Total £ 3,866,309 2,315,636 1,084,857 7,266,802 2021 £ 19,500 3,750
				23,250

34

HUGHES HALL

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

9 Staff costs

Staff costs
Consolidated Staff costs: Salaries National Insurance Pension costs Academic Non-academic Total	Academic Non- academic £ £ 1,189,949 2,166,820 118,078 170,739 114,051 100,620 1,422,078 2,438,179 Average staff numbers 2022 Number of Fellows Full time Equivalent 22 28 2 52 24 80	2022 Total 2021 Total £ £ 3,356,769 2,461,970 288,817 226,835 214,671 165,184 3,860,257 2,853,989 Average staff numbers 2021 Number of Fellows Full time equivalent 17 19 2 52 19 71	2021 Total £ 2,461,970 226,835 165,184
			2,853,989
			71

Full time equivalent numbers also include fellows.

At the balance sheet date there were 55 (2021: 54) members of the Governing Body. During the year the average number receiving remuneration was 24 (2021: 19) shown above.

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

		2022	2021
£100,001	- £110,000	-	1
£110,001	- £120,000	-	-
£120,001	- £130,000	1	-

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

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College. During the year there were 5 (2021: 5) members of the key management team who are the President, Bursar, Senior Tutor, Director of Strategy and the Bridge and Director of Institutional Advancement. The aggregated remuneration paid which consists of salary, employer’s national insurance contributions, employer’s pensions contributions, plus any taxable benefits either paid, payable or provided, gross of any salary sacrifice arrangements.

	2022	2021
	£	£
Aggregated remuneration	£422,282	403,170

Trustees received no remuneration in their capacity as Trustees of the Charity.

35

HUGHES HALL

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

10 Tangible Fixed Assets Consolidated

Cost As at 1 August 2021 Additions at cost Disposals As at 31 July 2022 Depreciation As at 1 August 2021 Charge for the year Disposal As at 30 June 2022 Net book value As at 31 July 2022 As at 31 July 2021	Freehold land £ 15,584,741 - - 15,584,741 - - - - 15,584,741 15,584,741	Freehold buildings £ 25,408,689 24,000 - 25,432,689 4,752,239 375,070 - 5,127,309 20,305,380 20,656,450	Motor vehicle £ 11,000 - - 11,000 8,800 2,200 - 11,000 - 2,200	Furniture fittings and equipment £ 490,871 62,783 (600) 553,054 331,626 90,034 (120) 421,540 131,514 159,245	Kitchen equipment £ 74,564 7,066 - 81,630 53,955 14,794 - 68,749 12,881 20,609	Total £ 41,569,865 93,849 (600)
						41,663,114
						5,146,620 482,098 (120)
						5,628,598
						36,034,516
						36,423,245

Tangible Fixed Assets College

Cost As at 1 August 2021 Additions at cost Written off As at 31 July 2022 Depreciation As at 1 August 2021 Charge for the year Written off As at 30 July 2022 Net book value As at 31 July 2022 As at 31 July 2021	Freehold land £ 15,584,741 - - 15,584,741 - - - - 15,584,741 15,584,741	Freehold buildings £ 25,852,948 24,000 - 25,876,948 4,752,240 375,070 - 5,127,310 20,749,638 21,100,708	Motor vehicle £ 11,000 - - 11,000 8,800 2,200 - 11,000 - -	Furniture fittings and equipment £ 487,379 61,990 - 549,369 330,927 89,176 - 420,103 129,266 156,452	Kitchen equipment £ 74,565 7,066 - 81,631 53,955 14,795 - 68,750 12,881 20,610	Total £ 42,010,633 93,056 -
						42,103,689
						5,145,922 481,241 -
						5,627,163
						36,476,526
						36,864,711

The insured value of freehold land and buildings as at 31 July 2022 was £38,836,568 (2021: £37,742,048).

The consolidated cost of freehold buildings and assets in construction consists of the costs incurred by the College less the surplus recorded in the accounts of Hughes Hall Limited, a subsidiary undertaking, and eliminated on consolidation.

36

HUGHES HALL

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

11 Investments Consolidated and College

As at 1 August 2021 Additions Disposals proceeds Gains Increase in cash balances held at fund managers As at 31 July 2022 Represented by: Property Quoted securities - equities Quoted securities - bonds Quoted securities - Multi-asset fund Quoted securities - Alternatives & Funds Cash in hand	2022 £ 34,857,424 4,078,659 (3,641,162) (944,218) 4,780,031 39,130,734 667,716 5,888,629 8,251,440 1,315,299 2,310,076 20,697,574 39,130,734	2021 £ 30,850,921 3,582,583 (1,933,675) 1,679,472 678,123
		34,857,424
		667,716 6,360,203 9,530,401 1,380,832 1,000,730 15,917,542
		34,857,424

12 Stocks Goods for resale Other stocks 13 Trade and other receivables Members of the College Other receivables Prepayments and accrued income Amounts owed by subsidiary company Other taxes and social security 14 Cash and cash equivalents Short-term money market investments Bank deposits Current accounts Total	12 Stocks Goods for resale Other stocks 13 Trade and other receivables Members of the College Other receivables Prepayments and accrued income Amounts owed by subsidiary company Other taxes and social security 14 Cash and cash equivalents Short-term money market investments Bank deposits Current accounts Total	Group 2022 £ 15,844 5,419 21,263 Group 2022 £ 398,019 35,399 202,177 - 29,433 665,028 Group 2022 £ 317,387 29,286 971,252 1,317,925	College 2022 £ 15,844 5,419 21,263 College 2022 £ 398,019 7,904 176,858 337,111 - 919,892 College 2022 £ 317,387 29,286 796,808 1,143,481	Group 2021 £ 11,887 3,677 15,564 Group 2021 £ 228,669 12,270 515,730 - - 756,669 Group 2021 £ 317,340 29,280 1,765,052 2,111,672	College 2021 £ 11,887 3,677
					15,564
					College 2021 £ 228,669 4,581 511,616 151,565 -
					896,431
					College 2021 £ 317,340 29,280 1,215,747
					1,562,367

37

HUGHES HALL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

15 Creditors: amounts falling due within one year

Bank loan Trade creditors Members of the College University fees Other taxes and social security Accruals and deferred income	Group 2022 £ 179,639 256,926 928,706 45,717 210,548 545,038 2,166,574	College 2022 £ 179,639 215,817 928,706 45,717 203,200 520,733 2,093,812	Group 2021 £ 175,281 228,878 615,869 - 105,753 458,931 1,584,712	College 2021 £ 175,281 213,251 615,869 - 105,753 445,840
				1,555,994

16 Creditors: amounts falling due after more than one year

Long term bank loan Other loans	Group 2022 £ 2,809,731 17,500,000 20,309,731	College 2022 £ 2,809,731 17,500,000 20,309,731	Group 2021 £ 2,989,370 17,500,000 20,489,370	College 2021 £ 2,989,370 17,500,000
				20,489,370

Private Placement Bonds

Private placement money of £4.34 million was borrowed at a fixed interest rate of 4.4% and £3.16 million was borrowed at a fixed interest rate of 4.45%. Of the Bond for £4.34 million, £2.41 million is due for repayment in full on 30 October 2043 and £1.93 million is due for repayment on 30 October 2053. The additional Bond for £3.16 million at 4.45% is repayable in full on 31 January 2044. These Bonds are unsecured.

The College secured a further loan of £10 million at a fixed interest rate of 3.05%. The loan is due for repayment in full on 2 February 2059.

17 Pension provisions Consolidated and College

Balance at beginning of year Movement in year: Current service cost Contributions Change in expected contributions Other finance cost Actuarial loss Balance at end of year	CCFPS £ 163,969 4,030 (9,870) - 2,955 7,683 168,767	USS £ 148,219 - (9,118) 184,417 1,289 - 324,807	2022 £ 312,188 4,030 (18,988) 184,417 4,244 7,683 493,574	2021 £ 363,089 3,811 (16,890) 12,994 4,279 (55,095)
				312,188

38

HUGHES HALL

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

18 Endowment funds

Restricted net assets relating to endowments are as follows:

Group and College Balance at beginning of year New donations and endowments Net transfer from/(to) income and expenditure account Increase/(decrease) in market value of investments Balance at end of year Analysis by type of purpose: Fellowship Fund Student Support Fund Scholarship Other Funds General endowments Analysis by asset Investments Cash	Restricted permanent endowments £ 1,993,383 1,047,764 (2,500) (117,559) 2,921,088 50,727 511,225 2,274,136 85,000 - 2,921,088 2,732,833 188,255 2,921,088	Unrestricted permanent endowments £ 5,904,615 - - (363,733) 5,540,882 - - - - 5,540,882 5,540,882 5,183,789 357,093 5,540,882	2022 Total £ 7,897,998 1,047,764 (2,500) (481,292) 8,461,970 50,727 511,225 2,274,136 85,000 5,540,882 8,461,970 7,916,622 545,348 8,461,970	2021 Total £ 6,726,864 - - 1,171,134
				7,897,998
				54,057 544,785 1,309,541 85,000 5,904,615
				7,897,998
				7,867,178 30,820
				7,897,998

39

HUGHES HALL

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

19 Restricted Reserves Group Permanent Unspent and Other Restricted Income Restricted expendable endowment £ £ Balance at beginning of year 1,714,508 171,092 New donations 2,634,706 101,572 Investment income 54,493 2,160 Increase/(decrease) in market value of investments (5,236) (6,853) Expenditure (2,015,332) (103,010) Balance at end of year 2,383,139 164,961 Analysis of other restricted funds/ donations by type of purpose: Fellowship Funds 34,679 - Scholarship Funds 439,852 - Prize Funds 16,163 5,628 Student Support Funds 223,939 11,875 Other Funds 27,842 147,458 Bridge Centres 1,617,514 - Travel Funds 23,150 - 2,383,139 164,961	2022 Total £ 1,885,600 2,736,278 56,653 (12,089) (2,118,342) 2,548,100 34,679 439,852 21,791 235,814 175,300 1,617,514 23,150 2,548,100	2021 Total £ 1,138,555 1,972,041 55,402 18,640 (1,299,038)
		1,885,600
		31,501 469,626 20,449 211,086 319,461 813,305 20,172 1,885,600

40

HUGHES HALL

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

19 Restricted Reserves (continued) College Permanent Unspent and Other Restricted Income Restricted expendable endowment £ £ Balance at beginning of year 1,449,170 171,092 New donations 2,372,265 101,572 Investment income 54,493 2,160 Increase in market value of investments Expenditure (5,236) (1,497,020) (6,853) (103,010) Balance at end of year 2,373,672 164,961 Analysis of other restricted funds/ donations by type of purpose: Fellowship Funds 34,679 - Scholarship Funds 439,852 - Prize Funds 16,163 5,628 Student Support Funds 223,939 11,875 Other Funds 18,748 147,458 Bridge Centres 1,617,141 - Travel Funds 23,150 - - 2,373,672 164,961 20 Memorandum of Unapplied Total Return Unapplied Total Return at beginning of year Unapplied Total (Loss)/Return for year (see note 3b) Unapplied Total Return at end of year	Restricted expendable endowment £ 171,092 101,572 2,160 (6,853) (103,010)		2022 Total £ 1,620,262 2,473,837 56,653 (12,089) (1,600,030) 2,538,633 34,679 439,852 21,791 235,814 166,206 1,617,141 23,150 2,538,633 2022 £ 7,960,303 (519,335) 7,440,968	2021 Total £ 986,202 1,962,360 55,402 18,640 (1,402,342) 1,620,262 31,501 469,626 20,449 211,086 177,624 689,804 20,172 1,620,262 2021 £ 6,726,864 1,233,438
	164,961
				7,960,302

41

HUGHES HALL

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

21 Reconciliation of consolidated surplus for the year to net cash inflow from operating activities

Surplus for the year Adjustment for non-cash items Depreciation Gain on endowments Decrease/(increase) in stocks Decrease/(increase) in debtors Increase/(decrease) in creditors Increase/(decrease) in provisions Adjustment for investing or financing activities Investment income Loan interest payable Bond interest payable Net cash inflow from operating activities 22 Cash flows from investing activities Proceed from sales of non-current fixed assets Non-current investment disposal Net investment income Endowment funds invested Payments made to acquire non-current assets Total cash flows from investing activities 23 Cash flows from financing activities Loan interest paid Bond interest paid New secured loans Repayment of amounts borrowed Total cash flows from financing activities	2022 £ 2,421,283 482,098 944,218 (5,699) 91,641 577,503 181,386 (341,422) 88,351 638,080 5,077,439 2022 £ 450 3,800,000 123,894 (8,800,000) (93,852) (4,969,508) 2022 £ (88,351) (638,080) - (175,247) (901,678)	2021 £ 3,975,251 484,233 (1,679,472) 516 277,466 (604,022) (50,901) (267,658) 93,244 637,209
		2,865,866
		2021 £ - 5,100,000 96,343 (7,255,722) (3,492)
		(2,062,871)
		2021 £ (93,244) (637,209) - (170,387)
		(900,840)

42

HUGHES HALL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

24 Consolidated reconciliation and analysis of net debt

Cash and cash equivalents Borrowings: Amounts falling due within one year Bank Loan Borrowings: Amounts falling due after more than one year Long term bank loan Other loans	At 1 August 2021 £ 2,111,672 (175,281) (2,989,370) (17,500,000) (18,552,979)	Cash Flows £ (793,747) (4,358) 179,639 - (618,466)	Other non- cash changes £ - - - - -	At 31 July 2022 £ 1,317,925 (179,639) (2,809,731) (17,500,000)
				(19,171,445)

25 Financial Instruments

Financial Instruments
	2022	2021
	£	£
Financial assets
Financial assets at fair value through Statements of Comprehensive
income
Listed equity investments	17,765,444	18,272,166
Financial assets that are debt instruments measured at amortised cost
Cash and cash equivalents	22,015,499	18,029,214
Debtors	433,418	240,939
Financial liabilities
Financial liabilities measured at amortised cost
Loans	20,489,370	20,664,651
Trade creditors	256,926	228,878
Other creditors	1,139,254	721,622

26 Pension Scheme

In addition to the defined contribution scheme the College participates in two defined benefit schemes, the Universities Superannuation Scheme (USS), and the Cambridge Colleges Federation Pension Scheme (CCFPS). The total pension cost for the year ended 31 July was as follows:

USS: Employer Contributions Stakeholder scheme: Employer Contributions	2022 £ 79,079 135,592 214,671	2021 £ 74,064 91,120
		165,184

Please note the 30 June 2022 date used in Note 26a, University Superannuation Scheme (USS) and Note 26b, Cambridge Colleges Federation Pension Scheme (CCFPS) is based on the report sent for disclosure by the two schemes.

43

HUGHES HALL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

26 Pension Scheme (continued)

a. University Superannuation Scheme (USS)

The total cost charged to the profit and loss account is £9,118 (2021: £7,020).

Deficit recovery contributions due within one year for the institution are £184,417 (2021: £12,995).

The latest available complete actuarial valuation of the Retirement Income Builder is as at 31 March 2020 (the valuation date), and was carried out using the projected unit method.

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

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

The key financial assumptions used in the 2020 valuation are described below. More detail is set out in the Statement of Funding Principles ( uss.co.uk/about-us/valuation-and-funding/statement-of-funding-principles ).

CPI assumption	Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves less: 1.1% p.a. to 2030, reducing linearly by 0.1% p.a. to a long-term difference of 0.1% p.a. from 2040
Pension increases (subject to a floor of 0%)	CPI assumption plus 0.05%
Discount rate (forward rates)	Fixed interest gilt yield curve plus: Pre-retirement: 2.75% p.a. Postretirement: 1.00% p.a.

The main demographic assumptions used relate to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2020 actuarial valuation. The mortality assumptions used in these figures are as follows:

	2020 valuation
Mortality base table	101% of S2PMA “light” for males and 95% of S3PFA for females
Future improvements to mortality	CMI 2019 with a smoothing parameter of 7.5, an initial addition of 0.5% p.a. and a long-term improvement rate of 1.8% pa for males and 1.6% pa for females

The current life expectancies on retirement at age 65 are:

he current life expectancies on retirement at age 65 are:
	2022	2021
Males currently aged 65 (years)	23.9	24.7
Females currently aged 65 (years)	25.5	26.1
Males currently aged 45 (years)	25.9	26.7
Females currently aged 45 (years)	27.3	27.9

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

	2022	2021
Discount rate	3.31%	0.87%
Pensionable salary growth	1.50%	1.50%

45

HUGHES HALL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

26 Pension Scheme (continued)

b. Cambridge Colleges Federation Pension Scheme (CCFPS)

The College operates a defined benefits plan for the College’s employees of the Cambridge Colleges’ Federated Pension Scheme (CCFPS).

The liabilities of the plan have been calculated at 30 June 2022, for the purposes of FRS102 using a valuation system designed for the Management Committee, acting as Trustee of the Cambridge Colleges' Federated Pension Scheme, but allowing for the different assumptions required under FRS102 and taking fully into consideration changes in the plan benefit structure and membership since that date.

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

	2022	2021
	% p.a.	% p.a.
Discount rate	3.80	1.80
Retail Price Index (RPI) assumption	3.45*	3.40
Consumer Price Index (CPI) assumption	2.75*	2.60

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

The underlying mortality assumption is based upon the standard table known as S3PA on a year of birth usage with CMI_2021 future improvement factors and a long-term rate of future improvement of 1.25% per annum, a standard smoothing factor (7.0) and no allowance for additional improvements (2021: S3PA with CMI_2020 future improvement factors and a long-term future improvement rate of 1.25% per annum, a standard smoothing factor (7.0) and no allowance for additional improvements). This results in the following life expectancies:

• Male aged 65 now has a life expectancy of 21.9 years (previously 21.9 years)

• Female age 65 now has a life expectancy of 24.3 years (previously 24.3 years)

• Male age 45 now and retiring in 20 years has a life expectancy of 23.2 years (previously 23.2 years)

• Female age 45 now and retiring in 20 years would have a life expectancy of 25.7 years (previously 25.7 years)

The amounts recognised in the Balance Sheet as at 30 June 2022 (with comparative figures as at 30 June 2021) are as follows:

follows:
Present value of plan liabilities Market value of plan assets Net defined benefit (liability)	2022 £ (710,098) 541,331 (168,767)	2021 £ (828,143) 664,174
		(163,969)

45

HUGHES HALL NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

26 Pension Scheme (continued)

The amounts to be recognised in the income and expenditure account for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

Current service cost Administrative expenses Interest on net defined benefit liability Total charge	2022 £ - 4,030 2,955 6,985	2021 £ - 3,811 3,248
		7,059

Changes in the present value of the plan liabilities for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

Present value of plan liabilities at beginning of period Current service cost Benefits paid Interest on plan liabilities Actuarial losses Present value of Scheme liabilities at end of period	2022 £ 828,143 - (36,837) 14,577 (95,785) 710,098	2021 £ 868,740 - (35,438) 12,341 (17,500)
		828,143

Changes in the fair value of plan assets for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

Market value of plan assets at beginning of period Contributions paid by the College Benefits paid Administration expenses paid Interest on plan assets Return on assets, less interest included in profit and loss Market value of Scheme assets at end of period Actual return on plan assets	2022 £ 664,174 9,870 (36,837) (4,370) 11,622 (103,128) 541,331 (91,506)	2021 £ 646,865 9,870 (35,438) (4,186) 9,093 37,970
		664,174
		47,063

The major categories of plan assets as a percentage of total Scheme assets at 30 June 2022 (with comparative figures at 30 June 2021) are as follows:

Equities Bonds & Cash Properties Total	2022 52% 34% 14% 100%	2021 48% 42% 10%
		100%

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

46

HUGHES HALL

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

26 Pension Scheme (continued)

Analysis of the remeasurement of the net defined benefit liability recognised in Other Comprehensive Income (OCI) for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

Return on assets, less interest included in income and expenditure Expected less actual plan expenses Experience gains and losses arising on plan liabilities Changes in assumptions underlying the present value of plan liabilities Remeasurement of net defined benefit liability recognised in OCI	2022 2021 (103,128) 37,970 (340) (375) (81,679) 10,371 177,464 7,129
	(7,683) 55,095

Movements in net defined benefit asset/(liability) during the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

he year ending 30 June 2021) are as follows:
Net defined benefit asset/(liability) at beginning of year Recognised in Profit and Loss Contributions paid by the College Remeasurement of net defined benefit liability recognised in OCI Net defined benefit asset/(liability) at end of year	2022 £ (163,969) (6,985) 9,870 (7,683) (168,767)	2021 £ (221,875) (7,059) 9,870 55,095
		(163,969)

Funding Policy

Actuarial valuations are carried out every three years on behalf of the Management Committee, acting as the Trustee of the Scheme, by a qualified independent actuary. The actuarial assumptions underlying the actuarial valuation are different to those adopted under FRS102.

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

• Annual contributions of not less than £6,111 per annum payable for the period to 31 August 2029.

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

c. Stakeholder Scheme

The College also operates a defined contribution scheme under the stakeholder rules for employees. The pension charge for the year was £135,592 (2021: £ 91,120).

47

HUGHES HALL

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

27 Principal subsidiary and associated undertakings and other significant investments

Subsidiary Company

At 31 July 2022 Hughes Hall held an investment in the following companies:

Undertaking	Company	Activity	Incorporation	%
	Numbers
Hughes Hall Limited	03238129	Design and build of new residential	United	100%
		accommodation	Kingdom
Hughes Hall (Hong	1661877	Providing advancement and	Hong Kong	100%
Kong) Limited		promotion of learning and education
		at Hughes Hall, University of
		Cambridge
Hughes Hall Conference	00038077	Provision of conference services	United	100%
Company Limited			Kingdom
Chapter Zero Limited	12062028	Membership organisation and climate	United	100%
		change research	Kingdom

28 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.

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 Governing Body member 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 members of the Governing Body and where any member of the Governing Body has a material interest in a College matter they are required to declare that fact. During the year no fees or expenses were paid to Fellows in respect of their duties as Trustees.

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

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

From To £1 £10,000 £10,001 £20,000 £20,001 £30,000 £30,001 £40,000 £40,001 £50,000 £50,001 £60,000 £60,001 £70,000 £70,001 £80,000 £80,001 £90,000 £90,001 £100,001 £100,000 £110,000 Total	2022 Number 13 1 3 1 2 1 2 - - - 1 24	2021 Number 10 - 3 1 3 - 1 - 1 - -
		19

The total Trustee salaries were £577,709 for the year (2021: £436,583). The Trustees were also paid other taxable benefits (including associated employer National Insurance contributions and employer contributions to pensions) which totalled £138,814 for the year 2022 (2021: £114,724).

48

HUGHES HALL

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 JULY 2022

29 Related Party Transactions (continued)

During the year 13 Trustees received grants from the College towards their research totalling £8,731 (2020/2021: £4,219) under a new initiative to support Fellows’ research.

In the 2021/22 financial year, 2 Trustees were also Trustees/Directors of other organisations which had transactions with Hughes Hall. None of the Hughes Hall trustees had significant control of the other organisation. The value in 2021/22 was £9,100,545 (2020/21: £8,772,109) for the two organisations which were the University of Cambridge and the Cambridge Trust.

The College has a number of trading subsidiary undertakings which are consolidated into these accounts. All subsidiary undertakings are 100% owned by the College and are detailed in note 27.

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.

49