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2022-06-30-accounts

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

Charity Registration Number: 1137476

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

INDEX TO THE ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

Contents Page
Reference and Administrative Details 2
Operating and Financial Review 3 - 11
Responsibilities of the College Council 12
Independent Auditors' Report 13 - 15
Statement of Principal Accounting Policies 16 - 22
Consolidated Statement of Comprehensive Income and Expenditure 23
College Statement of Comprehensive Income and Expenditure 24
Consolidated Statement of Changes in Reserves 25
College Statement of Changes in Reserves 26
Consolidated Balance Sheet 27
Consolidated Cash Flow Statement 28
Notes to Financial Statements 29 - 50

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 30 JUNE 2022

Legal Name Address Charity Registration Number VAT Registration Number

Churchill College in the University of Cambridge Churchill College, Storey's Way, Cambridge, CB3 0DS 1137476 GB 732 155 751

Trustees

The Trustees of the College are the members of the College Council. The Trustees during 2021/22 were:

Master Prof Dame Athene Donald (Chair) Vice-Master Prof A Webber (to 31/08/22) Dr A Barbrook (from 01/09/22) Senior Tutor Mr R Partington (to 01/08/21), Dr R Monson (from 01/08/21) Bursar Mrs T M James Senior Postgraduate Tutor Dr E DeMarrais (to 31/08/22) Dr M Kilkenny (from 01/10/22) MCR President Mr S Turner (to 31/12/21), Ms M Taylor-Williams (from 01/01/22) MCR Council Member Ms R Heath (to 31/12/21), Dr E Benyei (from 01/01/22) JCR President Miss A Rees (to 30/07/22) Mr S Pearce (from 04/10/22) JCR Member Miss T Kilburn (to 30/07/22) Mr A Syposz (from 04/10/22) Staff Members Ms E Davis, Mrs R Cresswell Fellows Dr C Hicks (from 01/01/22) Dr J Padley (from 01/01/22) Prof M Holmes Mr B Phipps (to 31/12/21) Dr L Jardine-Wright (to 31/12/21) Dr B Reddy (from 01/01/2022) Prof M Kramer Prof A Reid Dr M Linterman Prof S Savory (to 31/12/21) Dr C McEniery (from 01/01/22) Dr J Toner (to 31/12/2021)

Senior Officers

Master Vice-Master Senior Tutor Bursar Senior Postgraduate Tutor

Prof Dame Athene Donald Prof A Webber (to 31/08/22) Dr A Barbrook (from 01/09/22) Mr R Partington (to 01/08/21), Dr R Monson (from 01/08/21) Mrs T M James Dr E DeMarrais (to 31/08/22) Dr M Kilkenny (from 01/10/22)

Principal Advisers

Auditors

Price Bailey LLP Tennyson House Cambridge Business Park Cambridge, CB3 0WZ

Bankers

Lloyds Bank 3 Sidney Street Cambridge CB2 3HG

Investment Fund and Property Managers

Charles Stanley Pan Asset Comgest GEM Plus Fund Evenlode Global Equity

Fundsmith LLP Heronbridge Investment LGT Capital Partners

Lindsell Train Global Funds

Legal Advisers

Mills & Reeve LLP Botanic House 98-100 Hills Road Cambridge, CB2 1PH

Hewitsons LLP Shakespeare House 42 Newmarket Road Cambridge, CB5 8EP

Greenwoods GRM LLP Compass House, Vision Park Impington, Histon Cambridge, CB24 9AD

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW

FOR THE YEAR ENDED 30 JUNE 2022

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Background

Churchill College received its Royal Charter in 1960 and is the national and Commonwealth memorial to Sir Winston Churchill. The College is an autonomous, self-governing body of scholars and is one of the thirty one Colleges within the University of Cambridge. Under the College Statutes, “the students of the College shall comprise Undergraduate and Advanced Students, of whom approximately one-third shall be Advanced Students”. The Statutes also state that approximately 70% of all Undergraduates should be studying subjects in the fields of science or technology. These two statutes are fundamental to the distinct, unique nature of College. This diversity is integral to the College’s mission of reaching out to the wider world in academia, education, technology, business, the arts and politics. Churchill continues to be distinguished by its high numbers of students from “widening participation” or international backgrounds, and of older students with families as well as its relaxed, informal and friendly atmosphere.

The College is a registered Charity and its registered charity number is 1137476.

Aims and Objectives of the College

The charitable objectives of the College are:

Public Benefit

The College provides, in conjunction with the University of Cambridge, an education for some 887 (879 in 2020/21) undergraduate and graduate 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:

In addition, through the Møller Institute, the College provides courses to develop management knowledge and skills and leadership training for the private, public and professional service sectors from around the world.

The College advances research through:

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

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The College also extends the use of its facilities to the local community and community organisations and participates generously in hosting programmes to bring talented young people from poorer backgrounds to Cambridge.

Funding

The College has several sources of income including fees, catering and accommodation income from students, donations, investment income and income from conference activities. As the College’s income from students is not sufficient to fund the educational costs of the College, the College is reliant on its conference business as well as donations to meet its regular financial needs. The College has issued bonds totalling £24m which are due for repayment between 2042 and 2057.

Widening Participation

Churchill College aims to receive applications from the best Undergraduate students, irrespective of the background they come from. The Schools Liaison team works closely with schools and colleges to reach out to such applicants and ensure they get the best possible information about what Churchill College can offer and the admissions process.

Churchill’s schools and colleges liaison work is particularly concentrated in South Wales, Surrey, Sussex, and the London boroughs of Croydon, Merton, and Sutton, which are the UK areas for which Churchill College has outreach responsibility under the provision of Cambridge's Area Links Scheme.

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

Achievements and Performance

Tripos results were excellent with six candidates finishing top of their Tripos and a further four finishing ranked second. Given the disruption faced by this cohort due to the pandemic, this is a tremendous achievement. As a cohort they were extremely resilient and coped with three different exam formats across their time here.

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

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The College again attracted high numbers of undergraduate applications, with its recruitment efforts focussed on the state sector. The acceptance level from state education students continued to remain high:

2022 2021 2020 2019 2018
Applications 83.8 83.2% 85.1% 81.6% 83.3%
Offers 80.7 76.5% 76.5% 71.4% 76.6%
Accepted 79.8 75.4% 76.2% 62.2% 76.5%

Archives Centre

The year 2021-22 saw the renewal of the Centre’s accredited status with the National Archives. The team responded to the pandemic by moving to agile working and by offering a free copying and research service, making over 44,400 images. This has proved so successful that it will be maintained post covid. The number of in-person visits to the Archives Centre was inevitably impacted by the pandemic, but the Centre still accommodated 294 unique research visits, including some 237 new readers, and issued 7993 files. In addition, there were 60 new accessions to the collections, including Anthony Hewish’s Nobel Prize medal and A.V. Hill’s Nobel citation. The Churchill Acquired Papers, the archive of Sir James and Agnes HeadlamMorley and some additional Michael Young diaries were all catalogued.

The Centre hosted 32 on-line or in-person events, including a three day conference on Keeping and Making Diaries and the Stephen Roskill Memorial Lecture, which was delivered by Professor Njabulo Ndebele. The year also saw the arrival of a large bequest from the estate of the late Anthony Laver.

Scope of the Financial Statements

In addition to the educational activities of the College, the consolidated accounts include the commercial activity of the College and, through its subsidiaries, the Møller Institute Ltd and Churchill Conferences Ltd. The surpluses from these operations are donated to the College under a Deed of Covenant and appear as donations in the College’s income and expenditure statement. The figures below refer to the College accounts rather than the consolidated accounts.

Financial Review

a) Deficit for the Year

The College Statement of Comprehensive Income and Expenditure (SOCIE) shows a deficit of £10.6m for the year, compared with a surplus of £19.2m in 2020/21. The SOCIE shows all movements in net assets from one year to the next and therefore includes donation income which has been received for the long-term benefit of the College, losses and gains on investments as well as other adjustments.

The College’s management accounts show a deficit of £1.1m for 2020/21, compared with a deficit of £1.3m in 2020/21. The following table shows how the management accounts reconcile to the SOCIE.

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

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(Loss) per Management accounts
FRS102 Accruals/Provisions (sabbaticals, unpaid
holiday, fixed-term contracts)
USS Pension scheme deficit recovery adjustment
Actuarial adjustment re CCFPS pension scheme
Long term donations/investment income
Investment (losses)/gains
Investment in I&E drawn from investment gains
Surplus/(Loss) per SOCIE		 2021/22
2020/21
£’000
£’000
(1,102)
(1,250)
189
90
(1,444)
91
1
1,283
3,920
1,681
(9,249)
20,281
(2,880)
(2,931)
(10,565)
19,245

The most significant variation between 2020/21 and 2021/22 is the valuation of the College’s investments. The value increased by over £20m in 2020/21 compared with a loss of over £9m in 2021/22.

Another significant change concerns the provision required in respect of the USS deficit recovery plan. This was a “refund” of £0.9m in 2020/21 compared with a charge of £1.4m in 2021/22.

The College’s management accounts continue to show a large deficit which reflects the lack of commercial activity during the year including no donation from the Møller Institute. In addition, there were a significant number of vacant posts in 2020/21 due to a higher than usual number of staff departures and a recruitment freeze. Recruitment and retention of staff continued to be challenging in 2021/22 though staff numbers increased overall by the end of the year.

b) Academic Fees and Charges

These are primarily the tuition fees paid by or on behalf of students and they increased in total by 2.2% compared with 2020/21. Student numbers remained at the expected level, with a small increase compared with 2020/21. Charges include income to support Research Fellows and College Teaching Officers as well as income used to support the Cambridge Bursary Scheme and the Winston Churchill Studentships.

c) Donations, New Endowments and Capital Grants

The total income from donations was £3.9m compared with £1.8m in 2020/21. There were no gift aided donations paid to the College from its wholly owned subsidiaries in 2021/22 or 2020/21.

Rent and service charges received from the Møller Institute are included in the figures for income from accommodation, catering and conferences but these were £Nil for 2021/22 and 2020/21.

d) Endowment and Investment Performance

The College’s Amalgamated Investment Fund (AIF), which makes up over 90% of the College’s investments, delivered a negative total return of 5.84% compared with a positive return of 20.8% the previous year. This reflects the turmoil in the World economy with recession fears following Covid 19 and the effect of the war in Ukraine, supply issues and the surge in price of utilities. The return is slightly below the College’s benchmark return for the year of -2.72%. New funds of £1.7m were invested in the Amalgamated Investment Fund during the year, made up of new donations and unspent income held in restricted funds. £0.3m funds were withdrawn during the year.

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

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The College drew down a total of £4.5m in accordance with the agreed formula for smoothing total return from year to year compared with the drawdown of £4.2m the previous year. The drawdown per unit was 4.07% of the value at 30 June 2022 compared with 3.49% per unit as at 30 June 2021. The value of a unit in the AIF decreased from £20.91 at 30 June 2021 to £18.90 as at 30 June 2022.

e) Conferences and Catering income

The use of the facilities and amenities of the College is maximised, particularly out of term time, by extending them to commercial clients, including learned societies, other academic institutions and community education, to provide revenue to cover the fixed costs of the College and to support academic endeavours.

Commercial activity re-commenced during the year after no activity in 2020/21. It is anticipated that commercial turnover will recover to pre-pandemic levels in 2023/24.

f) Maintenance of Buildings

The College spent more than £3million on capital projects during 2021/22.

Major projects undertaken in 2021/22 included:

Much of the building work was carried out by the College’s in-house maintenance team.

g) Staff Costs and Pensions

Personnel costs as a whole (including related costs such as training, health and safety management, meals, recruitment) increased by 6.3. Staff received a 1.5% cost of living increase. Increments of c3% were also awarded to those who were eligible. However, the scheme which allows the awarding of discretionary increments remained suspended.

The College continued to make use of the Government’s coronavirus job retention scheme which ran throughout the year, until 30 September 2021. Many hospitality staff were furloughed for part of the year.

The College continues to pay into the Combined Colleges Federated Pension Scheme which is now closed to Churchill staff for future service and to new members. The College operates an auto-enrolment pension scheme with NOW Pensions. Non-academic staff appointed since 2007 have been offered a defined contribution pension, with generous contributions from the College. It retains an independent consultant to advise staff on their options. The College also offers pre-retirement courses and spent £18k on staff training during the year, including access to a wide range of on-line training available for all staff to use.

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

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Employer’s contributions in the USS pension increased to 21.4 % on 1 October 2021 and then increased marginally to 21.6% on 1 April 2022. These increases are lower than had been expected whilst consultations are being held to decide on the future level of benefits and contributions. The College is required to show its estimated share of the pension fund deficit recovery plan in its accounts and this was calculated to be charge of £1.4m in 2021/22 compared with a refund in 2020/21 of £91k.

Reserves Policy

The College intends to continue to pursue its objectives in perpetuity and has set a reserves policy which requires reserves to be maintained at a level which ensures that the core activity could be continued during a period of extreme financial difficulty.

The College’s reserve policy is based on a risk identification approach. This requires an understanding of the income streams and their risk profile, the degree of commitment to expenditure and the overall risk environment in which the College operates.

The Colleges reserves are made up of restricted funds, unrestricted funds and those unrestricted funds which the College has designated for a particular purpose. Some of the restricted reserves are permanent i.e. they cannot be spent. The College’s reserves are primarily held in the form of operational assets and investments. The value of the College’s unrestricted reserves is in excess of £129m though about £87m is in the form of operational assets.

The College does not need to increase its unrestricted reserves or set a particular target of unrestricted funds to ensure that it can continue to operate through a particularly difficult financial period. However, the College does need to ensure that sufficient reserves can be converted to cash to finance its way through a period of extreme financial adversity and should identify the level of cash that could be required.

In order to identify an appropriate level of reserves, a risk based review of all income streams and areas of expenditure was carried out in 2018/19. This suggests that a reserve of between £5m and £7m is required to enable the College to continue with its core functions for at least 12 months during a period of particularly adverse financial circumstances.

The College is confident that it could achieve cash sums of between £5m and £7m, if required, through the sale of investment assets or residential properties.

The above policy takes into account the requirement to pay interest on the bonds issued by the College but not the capital repayments as these are not due for repayment until 2043 at the earliest.

The reserve policy will be revised in 2028 to include the bond repayments i.e. 15 years prior to the date the first repayment is due.

The Archives Centre has limited reserves but is largely supported by a number of grant-making trusts, most established for that purpose.

Equal Opportunities

The College is committed to the principle and practice of equal opportunities and aims to be an equal opportunities employer. The College’s employment policy seeks to ensure that no job applicant or employee receives less favourable treatment on the grounds of sex, marital status, ethnic origin, disability, age, class, colour, HIV/AIDS status, personal circumstances, sexual orientation or any other grounds that are unjustified in terms of equality of opportunities for all.

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

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Employee Relations

The College consults regularly with its non-academic employees through various methods, both formally through the forum of its Staff Consultative Group and informally. Those holding academic positions are regularly consulted through Governing Body, a variety of College committees and, in particular, through membership of the College Council which meets regularly during term.

Principal risks and uncertainties

The College has a system in place to identify new risks regularly and to review and update the risk register. This will ensure that action can be taken to minimise the effects of those risks and uncertainties on the College. The risk register separately identifies strategic risks and operational risks, with clear identification of the responsible officer for each of the risks.

The risk register was significantly updated in 2020, to account for the Covid 19 pandemic, and continues to be reviewed and revised regularly. Great care has been taken to provide a safe environment for students, fellows and staff who live and work in College. The pandemic has prevented the hosting of commercial activities and there is a risk that this very important income stream does not return to previous levels. However, the College is able to offer hybrid events and bookings and the pipeline for events in 2022/23 is looking very positive.

Other risks and uncertainties that are currently being experienced include disruption and shortages of supplies of certain foods and fuel and to staffing pressures, particularly in hospitality. The price of gas has soared over the year end, though the College has had relatively low exposure to this during the year as the majority of its supply was on a fixed price basis.

Plans for the Future

The primary objective is to continue to offer excellent teaching and research opportunities whilst maintaining the wellbeing of students, Fellows and staff.

The main focus for 2022/23 is on rebuilding community. This includes retaining staff following significant recruitment as part of our re-structure and returning to full activity levels in College with students resident and receiving face-to-face teaching.

We have several significant events to mark during the year which will provide ample opportunities to join together in celebration as well as working together to select an architectural practice to re-design the College master-plan for the north side of the site, incorporating the rebuilding of the Churchill Road as well as reimagining the ancillary areas to provide the infrastructure and facilities we might need for the next 60 years.

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

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Corporate Governance

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

  2. The College is a registered charity (registered number 1137476) and subject to regulation by the Charity Commission for England and Wales. The members of the College Council are the charity trustees and are responsible for ensuring compliance with charity law.

  3. The College Council is advised in carrying out its duties by a number of committees including a Finance Committee, an Education Committee, a Tutorial Committee, an Estates Committee, a Health, Safety and Security Committee, an Audit and Risk Committee and an Investment Committee.

  4. The principal officers of the College are the Master, Vice-Master, Bursar, Senior Tutor, and Senior Postgraduate Tutor.

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

Membership of the Finance Committee in 2021/22 included the Master, Vice-Master, Bursar, Senior Tutor, Senior Postgraduate Tutor, Finance Manager, Professor D Coyle, Professor T Minshall, Professor A Onatskiy, Dr A Reid, Professor A Webb, Mr N Canetty-Clarke (external member), Mr T Ingram (external member) and representatives of the JCR and MCR.

  1. Mr N Canetty-Clarke (external member) is the Chairman of the Audit and Risk committee. The elected members of the Governing Body are Professor P Harris and Dr D Green. Mr D Woods is an external member of the Committee.

    1. There is a Register of Interests of Trustees and of the senior administrative officers. On arrival, new Fellows of the College are required to register their interests and are encouraged to update the College when these change, as well as declaring in meetings at the appropriate agenda item. For all Committees of Council and Governing Body, declarations of interest are made systematically at meetings.

  3. The College’s Trustees (members of the College Council) during the year ended 30 June 2022 are set out on page 2.

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

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Statement of Internal Control

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

  1. 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.

  2. The system of internal control is designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. This process was in place for the year ended 30 June 2022 and up to the date of approval of the financial statements.

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

  4. An approval matrix for purchasing and authorisation of actual expenditure;

  5. Guidelines for limits on personal expenses;

  6. Countersigning of claims by Heads of Departments and checking by accounts staff before payment;

  7. Double signatures on all transactions over £20,000 by whichever means of payment;

  8. Stock checks on vulnerable items on a regular basis;

  9. On site security and limited access to vulnerable items.

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

Mrs T M James Bursar

Date: 29 November 2022

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

RESPONSIBILITIES OF THE COLLEGE COUNCIL

FOR THE YEAR ENDED 30 JUNE 2022

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Statement of Responsibilities of the College Council

The College Council is responsible for preparing the Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom, Generally Accepted Accounting Practice) including FRS102 “The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland” and “Statement of Recommended Practice: Accounting for Further and Higher Education”.

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

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

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

Mrs T M James Bursar

Date: 29 November 2022

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

INDEPENDENT AUDITORS’ REPORT TO THE COLLEGE COUNCIL OF CHURCHILL COLLEGE

FOR THE YEAR ENDED 30 JUNE 2022

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Opinion

We have audited the financial statements of Churchill College (the ‘College’) and its subsidiaries (the 'group') for the year ended 30 June 2022 which comprise the Consolidated Statement of Comprehensive Income and Expenditure, the Consolidated Statement of Changes in Reserves, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s 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 other information comprises the information included in the report of the College Council, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 this gives

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

INDEPENDENT AUDITORS’ REPORT TO THE COLLEGE COUNCIL OF CHURCHILL COLLEGE

FOR THE YEAR ENDED 30 JUNE 2022

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

We have nothing to report in this regard

Matters on which we are required to report by exception

Responsibilities of the College Council

As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees (College Council) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group'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 the College or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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

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:

We gained an understanding of the legal and regulatory framework applicable to the College and how it operates and considered the risk of the College not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements.

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

INDEPENDENT AUDITORS’ REPORT TO THE COLLEGE COUNCIL OF CHURCHILL COLLEGE

FOR THE YEAR ENDED 30 JUNE 2022

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The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the College Council and Governing Body, in accordance with College’s statutes, the Statutes of the University of Cambridge and part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the College trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the College Council and Governing Body as a body, for our audit work, for this report, or for the opinions we have formed.

Price Bailey LLP Chartered Accountants and Statutory Auditors

Tennyson House Cambridge Business Park Cambridge CB4 0WZ

Date: 16 December 2022

15

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES

FOR THE YEAR ENDED 30 JUNE 2022

______________

Basis of Preparation

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

The Statement of Comprehensive Income and Expenditure includes activity analysis in order to demonstrate that all fee income is spent for educational purposes. The analysis required by the SORP is set out in note 7.

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 £000.

.

Going concern

As a result of the COVID-19 pandemic the College Council have considered various future scenarios and the impact of possible continued and new reductions to income, particularly conferences, accommodation and investment income. These future budgets and forecasts indicate how the College is able to respond to possible income reductions in a timely manner so that there is no interruption to its services to students. The College Council also reviewed the implications of further lockdowns.

As a result of their assessment of the implications of the pandemic and various strategies and options to deal with these the College Council has confirmed the College’s ability to continue in operation and on that basis they have adopted the going concern assumption within these financial statements. The College Council confirm the College's ability to continue as a going concern.

Basis of Accounting

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

Basis of Consolidation

The consolidated financial statements include the College and its wholly owned subsidiary undertakings:

Intra-group balances are eliminated on consolidation. The consolidated financial statements do not include the activities of student societies (as these are separate bodies in which the College has no financial interest and over whose policy decisions it has no control).

Recognition of income

a. 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.

16

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

______________

b. 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.

c. Donations and Endowments

Non exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised within the Consolidated Statement of Comprehensive Income and Expenditure when the College is entitled to the income. Income is retained within restricted reserves until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer. Donations and endowments with restrictions are classified as restricted reserves with additional disclosure provided within the notes to the accounts.

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.

d. Legacy Accounting

For legacies, entitlement is taken on a case by case basis as the earlier of the date on which the College is aware that probate has been granted and either: the estate has been finalised, final estate accounts have been received and notification has been made by the executor(s) to the College that a distribution will be made, or when a notification has been made by the executors(s) to the College of an intention to make a distribution prior to the end of the financial year and subsequently that distribution is received from the estate after the year end. 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.

e. 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.

f. Total Return

The Endowment is invested on a Total Return basis. The total actual income and gains/losses in the year are taken to a reserve, from which the planned Endowment drawdown is released to the Income and Expenditure account. The remaining balance of the Total Return, after deducting the drawdown, is accumulated within reserves as set out in Note 19.

g. Other Income

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

17

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

______________

h. Cambridge Bursary Scheme

In 2021/22, payment of the Cambridge Bursaries to eligible students was made directly by the Student Loans Company (SLC). As a consequence, the College reimbursed the SLC for the full amount paid to their eligible students and the College subsequently received a contribution from the University of Cambridge towards this payment.

The net payment of £236k is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows:

Income £160k Expenditure £396k

Foreign Currency Translation

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

Tangible fixed assets

a. Land and buildings

Fixed assets are stated at deemed cost less accumulated depreciation and accumulated impairment losses.

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 buildings are depreciated on a straight line basis over their expected useful economic life of 60 years. Freehold land is not depreciated as it is considered to have an indefinite useful life.

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

b. Furniture, fittings and equipment

Furniture, fittings and equipment costing less than £10,000 per individual item or group of related items is written off in the year of acquisition. All other assets are capitalised and depreciated over their expected useful life as follows:

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

c. Leased assets

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

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

18

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

______________

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.

d. 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, and also the volume of items and valuation issues mean that it is neither practical nor beneficial to identify and value them. Acquisitions since 1 August 2014 and valued at over £500k are capitalised and recognised in the Balance Sheet at the cost or, where the assets are donated, at valuation on receipt of these assets where such a cost or valuation is reasonably obtainable.

Heritage assets are not depreciated since their long economic life and high residual value mean that any depreciation would not be material. Expenditure which is required to preserve or prevent further deterioration of individual items within the heritage assets is recognised in the Income and Expenditure Account when it is incurred. Operational assets are those that the College uses in the course of meeting its charitable purposes of education, religion, learning, and research. Once an asset has been classified as an operational asset it is not reclassified as a heritage asset.

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.

Financial Instruments

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

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

Financial assets

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

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

19

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

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 .

Investments

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

Stocks

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

Provisions

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

20

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

Taxation

The College is a registered charity (number 1137476) and also a charity within the meaning of Section 467 of the Corporation Tax Act 2010. Accordingly, the College is exempt from taxation in respect of income or capital gains received within the categories covered by Sections 478 to 488 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes.

The College receives no similar exemption in respect of Value Added Tax.

Contribution under Statute G,II

The College is liable to be assessed for Contribution under the provisions of Statute G,II of the University of Cambridge. Contribution is used to fund grants to colleges from the Colleges Fund. The College may from time to time be eligible for such grants. The liability for the year is as advised to the College by the University based on an assessable amount derived from the value of the College’s assets as at the end of the previous financial year.

Pension schemes

a) Universities Superannuation Scheme

The College participates in Universities Superannuation Scheme. The scheme is a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The College is therefore exposed to actuarial risks associated with other Colleges’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, the College therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme. Since the College has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the College recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and therefore an expense is recognised.

b) CCFPS

The College is also a member of the multi-employer defined benefits scheme, the Cambridge Colleges’ Federated Pension scheme. The Churchill College section closed for accrual on 31 March 2007 when all active members were made deferred. The fund is valued every three years by a professionally qualified independent actuary. In the intervening years, the actuary reviews the progress of the scheme.

Reserves

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

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

Critical Accounting Estimates and Judgements

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

21

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

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 9.

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.

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

As the College is contractually bound to make deficit recovery payments to USS, this is recognised as a liability on the balance sheet. The provision is currently based on the USS deficit recovery plan agreed after the 2020 actuarial valuation which defines the deficit payment required as a percentage of future salaries until 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 28.

All other accounting judgements and estimates are detailed under the appropriate accounting policy.

22

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE

FOR THE YEAR ENDED 30 JUNE 2022

----- Start of picture text -----
2022 2021
CONSOLIDATED Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
INCOME Note
Academic Fees and Charges 1 4,063 296 - 4,359 4,073 154 - 4,227
Residence, Catering and Conferences 2 9,337 - - 9,337 5,186 - - 5,186
Endowment Return Transferred 3 3,215 1,249 (4,464) - 3,038 1,160 (4,198) -
Other Investment Income 3 7 - 1,583 1,590 2 - 1,268 1,270
Total Income before Donations and Endowments 16,622 1,545 (2,881) 15,286 12,299 1,314 (2,930) 10,683
Donations 403 1,019 - 1,422 1,122 817 - 1,939
New Endowments - 1,839 6 1,845 - 556 4 560
Other Capital Donations for Assets - 702 - 702 - - - -
Total Income 17,025 5,105 (2,875) 19,255 13,421 2,687 (2,926) 13,182
EXPENDITURE
Education 4 6,453 733 - 7,186 4,826 707 - 5,533
Residence, Catering and Conferences 5 11,733 6 - 11,739 10,095 - - 10,095
Investment Management Costs 3 - - - - 9 - - 9
Other Expenditure 6 632 863 - 1,495 821 675 - 1,496
Contribution Under Statute G,II 35 - - 35 27 - - 27
- -
Total Expenditure 18,853 1,602 20,455 15,778 1,382 17,160
Surplus/(Deficit) before other Gains and Losses (1,828) 3,503 (2,875) (1,200) (2,357) 1,305 (2,926) (3,978)
Gain on Investments (6,935) (1,414) (900) (9,249) 9,792 1,902 8,587 20,281
Surplus for the Year (8,763) 2,089 (3,775) (10,449) 7,435 3,207 5,661 16,303
Other Comprehensive Income
Actuarial Gain in Respect of Pension Schemes 16 1 - - 1 1,282 - - 1,282
Total Comprehensive Income for the Year (8,762) 2,089 (3,775) (10,448) 8,717 3,207 5,661 17,585
----- End of picture text -----

23

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

COLLEGE STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE

FOR THE YEAR ENDED 30 JUNE 2022

----- Start of picture text -----
2022 2021
COLLEGE Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
INCOME Note
Academic Fees and Charges 1 4,063 296 - 4,359 4,073 154 - 4,227
Residence, Catering and Conferences 2 5,773 - - 5,773 4,301 - - 4,301
Endowment Return Transferred 3 3,215 1,249 (4,464) - 3,038 1,160 (4,198) -
Other Investment Income 3 7 - 1,583 1,590 2 - 1,268 1,270
Total Income before Donations and Endowments 13,058 1,545 (2,881) 11,722 11,414 1,314 (2,930) 9,798
Donations 344 1,019 - 1,363 409 817 - 1,226
New Endowments - 1,839 6 1,845 - 556 4 560
Other Capital Donations for Assets - 702 - 702 - - - -
Total Income 13,402 5,105 (2,875) 15,632 11,823 2,687 (2,926) 11,584
EXPENDITURE
Education 4 6,453 733 - 7,186 4,826 707 - 5,533
Residence, Catering and Conferences 5 8,226 6 - 8,232 6,837 - - 6,837
Investment Management Costs 3 - - - - 9 - - 9
Other Expenditure 6 632 863 - 1,495 820 675 - 1,495
Contribution Under Statute G,II 35 - - 35 27 - - 27
- -
Total Expenditure 15,346 1,602 16,948 12,519 1,382 13,901
Surplus/(Deficit) before other Gains and Losses (1,944) 3,503 (2,875) (1,316) (696) 1,305 (2,926) (2,317)
(Losses)/Gains on Investments (6,935) (1,414) (900) (9,249) 9,792 1,902 8,587 20,281
Surplus for the Year (8,879) 2,089 (3,775) (10,565) 9,096 3,207 5,661 17,964
Other Comprehensive Income
Actuarial Gain in Respect of Pension Schemes 16 1 - - 1 1,282 - - 1,282
Total Comprehensive Income for the Year (8,878) 2,089 (3,775) (10,564) 10,378 3,207 5,661 19,246
----- End of picture text -----

24

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

CONSOLIDATED STATEMENT OF CHANGES IN RESERVES

FOR THE YEAR ENDED 30 JUNE 2022

----- Start of picture text -----
CONSOLIDATED Income and Expenditure Reserve
Unrestricted Restricted Endowment Total
£'000 £'000 £'000 £'000
Balance at 1 July 2021 138,098 18,450 39,507 196,055
Surplus from statement of compehensive
(8,763) 2,089 (3,775) (10,449)
income and expenditure
Other Comprehensive Income 1 1
Balance at 30 June 2022 129,335 20,539 35,732 185,606
CONSOLIDATED Income and Expenditure Reserve
Unrestricted Restricted Endowment Total
£'000 £'000 £'000 £'000
Balance at 1 July 2020 129,381 15,243 33,846 178,470
Surplus from statement of compehensive
7,435 3,207 5,661 16,303
income and expenditure
Other Comprehensive Income 1,282 1,282
Balance at 30 June 2021 138,098 18,450 39,507 196,055
----- End of picture text -----

25

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

COLLEGE STATEMENT OF CHANGES IN RESERVES

FOR THE YEAR ENDED 30 JUNE 2022

----- Start of picture text -----
COLLEGE Income and Expenditure Reserve
Unrestricted Restricted Endowment Total
£'000 £'000 £'000 £'000
Balance at 1 July 2021 137,422 18,450 39,507 195,379
Surplus from statement of compehensive
(8,879) 2,089 (3,775) (10,565)
income and expenditure
Other Comprehensive Income 1 1
Balance at 30 June 2022 128,544 20,539 35,732 184,815
COLLEGE Income and Expenditure Reserve
Unrestricted Restricted Endowment Total
£'000 £'000 £'000 £'000
Balance at 1 July 2020 127,044 15,243 33,846 176,133
Surplus from statement of compehensive
9,096 3,207 5,661 17,964
income and expenditure
Other Comprehensive Income 1,282 1,282
Balance at 30 June 2021 137,422 18,450 39,507 195,379
----- End of picture text -----

26

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2022

----- Start of picture text -----
Consolidated College Consolidated College
2022 2022 2021 2021
Note £'000 £'000 £'000 £'000
Non-Current Assets
Fixed Assets Assets 9 95,408 87,320 94,891 86,467
Investments 10 112,654 119,654 123,220 130,220
208,062 206,974 218,111 216,687
CURRENT ASSETS
Stock 11 655 632 642 604
Trade and Other Receiveables 12 2,213 2,114 1,882 2,079
Cash and cash equivalents 13 6,019 4,564 5,349 4,164
8,887 7,310 7,873 6,847
Creditors: Amounts Falling Due Within
One Year 14 (4,944) (3,070) (4,843) (3,069)
NET CURRENT ASSETS 3,943 4,240 3,030 3,778
Creditors: Amounts Falling Due After
One Year 15 (24,137) (24,137) (24,268) (24,268)
NET ASSETS EXCLUDING PENSION
PROVISION 187,868 187,077 196,873 196,197
Pension Provision 16 (2,262) (2,262) (818) (818)
NET ASSETS INCLUDING PENSION
PROVISION 185,606 184,815 196,055 195,379
RESTRICTED RESERVES
Income and Expenditure Reserves
Endowment Reserve 17 35,732 35,732 39,507 39,507
Restricted Reserve 18 20,539 20,539 18,450 18,450
56,271 56,271 57,957 57,957
UNRESTRICTED RESERVES
Income and Expenditure Reserve
Unrestricted 129,335 128,544 138,098 137,422
185,606 184,815 196,055 195,379
----- End of picture text -----

The financial statements were approved by College Council on 29 November 2022 and signed on its behalf by:

Dame Athene Donald Master

Mrs T M James Bursar

The notes on pages 29 to 50 form part of these accounts.

27

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 JUNE 2022

----- Start of picture text -----
CONSOLIDATED 2022 2021
Note £'000 £'000
Net Cash Inflow from Operating Activities 20 1,798 (2,605)
Cash Flows from Investing Activities 21 (325) 1,603
Cash Flows from Financing Activities 22 (803) (803)
Increase/(Decrease) in Cash and Cash Equivalents in Year 670 (1,805)
Cash and Cash Equivalents at Beginning of Year 5,349 7,154
Cash and Cash Equivalents at End of Year 6,019 5,349
----- End of picture text -----

28

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

1
ACADEMIC FEES AND CHARGES
College Fees:
Other Income
Fee income received at the Publicly-funded Undergraduate rate
Fee income received at the Privately-funded Undergraduate rate
Fee income received at the Graduate rate		 2022
£'000
2,007
688
1,075
3,770
589
4,359		 2021
£'000
2,010
731
946
3,687
540
4,227

2 INCOME FROM ACCOMMODATION, CATERING AND CONFERENCES

Consolidated
2022
£'000
Accommodation
College Members
4,517
Conferences
1,342
International Programmes
1,265
Catering
College Members
701
Conferences
1,476
International Programmes
36
9,337		 College Consolidated
2022
2021
£'000
£'000
4,517
3,779
304
1,027
-
-
701
224
250
156
-
-
5,772
5,186		 College
2021
£'000
4,077
-
224
-
4,301

3 ENDOWMENT RETURN AND INVESTMENT INCOME

3a Analysis
Total Return Contribution (see note 3b)
Interest
Less: Excess of Total Return over Investment Income Received
COLLEGE
Interest
CONSOLIDATED		 2022
£'000
4,464
7
(2,880)
1,591
-
1,591		 2021
£'000
4,198
2
(2,931)
1,269
-
1,269

29

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

3b Summary of Total Return
Income From:
Land and Buildings
Quoted and Other Securities and Cash
(Losses)/Gains on Endowment Assets
Quoted and Other Securities
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 19)
3c Investment Management Costs
Quoted Securities
4
EDUCATION EXPENDITURE
Teaching
Tutorial
Admissions (Incl Access Grants)
Research
Scholarships and Awards
Other Educational Facilities		 2022
£'000
-
1,583
1,583
(9,249)
(9,249)
-
(7,666)
(4,464)
(12,130)
-
-
College
2022
£'000
2,888
1,249
1,263
585
672
529
7,186		 2021
£'000
226
1,042
1,268
20,281
20,281
(9)
21,540
(4,198)
17,342
9
9
College
2021
£'000
2,218
766
1,084
453
563
449
5,533

5 ACCOMMODATION, CATERING, AND CONFERENCES EXPENDITURE

Consolidated
2022
£'000
Accommodation
College Members
6,203
Conferences
1,172
International Programmes
1,063
Catering
College Members
1,681
Conferences
1,590
International Programmes
30
11,739		 College Consolidated
2022
2021
£'000
£'000
6,203
5,527
165
1,969
-
-
1,681
1,310
183
1,289
-
-
8,232
10,095		 College
2021
£'000
5,527
-
-
1,310
-
-
6,837

30

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

6
OTHER EXPENDITURE
Archives Centre
Bond & Loan Interest/Charges
Other
COLLEGE AND CONSOLIDATED		 2022
£'000
493
803
199
1,495		 2021
£'000
502
803
190
1,495

7a ANALYSIS OF 2021/22 EXPENDITURE BY ACTIVITY

CONSOLIDATED
Education (Note 4)
Accommodation, Catering and Conferences (Note 5)
Other (Note 6)
COLLEGE
Education (Note 4)
Accommodation, Catering and Conferences (Note 5)
Other (Note 6)		 Staff
Costs
(Note 8)
£'000
4,384
5,583
501
10,468
4,384
3,501
501
8,386		 Other
Operating
Expenses
£'000
2,320
3,929
994
7,243
2,320
2,884
994
6,198		 Depreciation
£'000
482
2,233
-
2,715
482
1,847
-
2,329		 Total
£'000
7,186
11,739
1,495
20,420
7,186
8,232
1,495
16,913		 Total

Expenditure includes fundraising costs of £417k. This expenditure includes the cost of the alumni office.

7b ANALYSIS OF 2020/21 EXPENDITURE BY ACTIVITY

CONSOLIDATED
Education (Note 4)
Accommodation, Catering and Conferences (Note 5)
Other (Note 6)
COLLEGE*
Education (Note 4)
Accommodation, Catering and Conferences (Note 5)
Other (Note 6) *		 Staff
Costs
(Note 8)
£'000
3,095
5,157
541
8,793
3,094
3,096
541
6,731		 Other
Operating
Expenses
£'000
1,982
2,754
954
5,690
1,982
1,985
954
4,921		 Depreciation
£'000
456
2,184
-
2,640
456
1,756
-
2,212		 Total
£'000
5,533
10,095
1,495
17,123
5,532
6,837
1,495
13,864		 Total

31

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

7c Auditors Remuneration
Other Operating Costs include:
Audit Fees payable to College's External Auditors
Audit Fees payable to Subsidiaries' External Auditors
Other Fees payable to Subsidiaries' and College's External Auditors		 2022
£'000
16
13
-
29		 2021
£'000
16
9
5
30
8
STAFF COSTS
CONSOLIDATED 2021/22
Staff Costs:
Salaries
External Staff Costs
Change in USS Pension Provision
National Insurance
Pension Costs
CONSOLIDATED 2020/21
Staff Costs:
Salaries
External Staff Costs
Change in USS Pension Provision
National Insurance
Pension Costs		 Non -
Academic
Academic
2022
2022
£'000
£'000
2,078
5,226
251
102
1,444
-
175
464
300
428
4,248
6,220
Non -
Academic
Academic
2021
2021
£'000
£'000
2,232
5,080
223
-
(91)
-
166
444
316
423
2,846
5,947		 Total
2022
£'000
7,304
353
1,444
639
728
10,468
Total
2021
£'000
7,312
223
(91)
610
739
8,793

The 2020/21 consolidated staff costs include redundancy payments made to 13 employees totalling £31k.

COLLEGE 2021/22
Staff Costs:
Emoluments
External Staff Costs
Change in USS Pension Provision
Social Security Costs
Other Pension Costs		 Academic
2022
£'000
2,078
251
1,444
175
300
4,248		 Non -
Academic
2022
£'000
3,375
102
-
307
354
4,138		 Total
2022
£'000
5,453
353
1,444
482
654
8,386

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

32

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

----- Start of picture text -----
8 STAFF COSTS (CONT)
Non -
Academic Academic Total
2021 2021 2021
COLLEGE 2020/21 £'000 £'000 £'000
Staff Costs:
Emoluments 2,232 3,244 5,476
External Staff Costs 223 - 223
-
Change in USS Pension Provision (91) (91)
Social Security Costs 166 290 456
Other Pension Costs 316 352 668
2,846 3,886 6,732
Average Staff Numbers 2021/22 2022 2022 2022 2022 2022
Consolidated College College College College
Staff Full-
Average Average Fellows Full- Average
Time
Number of Number of Time Number of
Equivalen
Staff Fellows Equivalent Staff
t
Academic 108 108 25 - -
Non-Academic 231 7 6 169 145
339 115 31 169 145
Average Staff Numbers 2020/21 2021 2021 2021 2021 2021
Consolidated College College College College
Staff Full-
Average Fellows Full- Average
Average Time
Number of Time Number of
Number of Equivalen
Fellows Equivalent Staff
Staff t
Academic 123 123 25 - -
Non-Academic - College 236 8 7 161 138
359 131 32 161 138
----- End of picture text -----

33

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

8 STAFF COSTS (CONT)

The number of officers and employees who received emoluments in the following ranges was:

----- Start of picture text -----
|||||| |---|---|---|---|---| |Consolidated|College|Consolidated|College| |2022|2022|2021|2021| |£100,000 - £109,999|-|1|1|1| |£110,000 - £119,999|-|-|-|1| |£130,000 - £139,999|2|1|-|0|

----- End of picture text -----

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

During the year remuneration paid to Trustees in their capacity as Key Management Personnel of the College was:

----- Start of picture text -----
|||| |---|---|---| |Total|Total| |2022|2021| |£'000|£'000| |Aggregate Remuneration|331|368|

----- End of picture text -----

The key management personnel are the Master, the Vice-Master, Bursar, the Senior Tutor and the Tutor for Advanced Students. They have authority and responsibility for planning, directing and controlling the activities of the College. The aggregated remuneration paid to key management personnel consists of salary, employer’s national insurance contributions, employer’s pension contributions, plus any taxable benefits either paid, payable or provided, gross of any salary sacrifice arrangements.

34

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

9 FIXED ASSETS

a Tangible Assets - Consolidated

College Site
Flats &
Buildings
£'000
COST/VALUATION
At 1 July 2021
89,876
Additions
1,260
Disposals
-
Transfers
Cost at 30 June 2022
91,136
DEPRECIATION
At 1 July 2021
21,413
Provided for the year
1,551
Eliminated on Disposal
-
Depreciation at 30 June 2020
22,964
NET BOOK VALUE
At 30 June 2022
68,172
At 30 June 2021
68,463		 College
Land
£'000
2,823
-
-
-
2,823
-
-
-
-
2,823
2,823		 College
Hostels &
Houses
£'000
8,395
974
-
-
9,369
2,226
169
-
2,395
6,974
6,169		 Fixtures
Fittings
Equipment
£'000
6,780
998
(220)
-
7,558
4,593
810
(220)
5,183
2,375
2,187		 Møller
Centre
£'000
21,623
-
-
-
21,623
6,374
185
-
6,559
15,064
15,249		 Total
£'000
129,497
3,232
(220)
-
132,509
34,606
2,715
(220)
37,101
95,408
94,891

The insured value of freehold land and buildings as at 30 June 2022 was £126m (2021: £122m ).

The consolidated cost of freehold buildings consists of the costs incurred by the College less the surplus recorded in the accounts of Churchill Residences II Limited, a subsidiary undertaking, and eliminated on consolidation.

35

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

9a Tangible Assets - College
College Site
Flats &
Buildings
£'000
COST/VALUATION
At 1 July 2021
90,216
Additions
1,260
Disposals
-
Cost at 30 June 2022
91,476
DEPRECIATION
At 1 July 2021
21,474
Provided for the year
1,557
Eliminated on Disposal
-
Depreciation at 30 June 2022
23,031
NET BOOK VALUE
At 30 June 2022
68,445
At 30 June 2021
68,742		 College
Land
£'000
2,823
-
-
2,823
-
-
-
-
2,823
2,823		 College
Hostels &
Houses
£'000
8,395
974
-
9,369
2,226
169
-
2,395
6,974
6,169		 Fixtures
Fittings
Equipment
£'000
3,181
948
(220)
3,909
2,037
418
(220)
2,235
1,674
1,144		 Møller
Centre
£'000
11,105
-
-
11,105
3,516
185
-
3,701
7,404
7,589		 Total
£'000
115,720
3,182
(220)
118,682
29,253
2,329
(220)
31,362
87,320
86,467

9b Heritage Assets

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

As stated in the statement of principal accounting policies, heritage assets acquired since 1 July 1999 have been capitalised. However, as none have been acquired since this date the value of capitalised heritage assets is £Nil.

10 INVESTMENT ASSETS
Consolidated
2022
£'000
Balance at 1 July 2021
123,220
Additions
14,564
Disposals
(17,364)
(Loss)/Gain on Investment Valuation
(9,249)
Increase in Cash Balances at Fund Managers
1,482
Balance as at 30 June 2022
112,654
Historic Cost
77,830		 College Consolidated
2022
2021
£'000
£'000
130,220
104,962
14,564
20,881
(17,364)
(20,360)
(9,249)
20,281
1,482
(2,544)
119,654
123,220
84,830
71,884		 College
2021
£'000
111,962
20,881
(20,360)
20,281
(2,544)
130,220
78,884

36

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

10 INVESTMENT ASSETS (CONT)
Consolidated
2022
Represented by:
£'000
Quoted Securities - Equities
111,780
Investment in Subsidiary Undertakings
-
Cash Held for Reinvestment
874
112,654
11 STOCKS
Consolidated
2022
£'000
Fellows Wine Cellar
591
Other Stocks
64
655
Consolidated
12 TRADE AND OTHER RECEIVABLES
2022
£'000
Trade Debtors
1,087
Members of the College
306
Amounts due from Subsidiary Undertakings
-
Prepayments and Accrued Income
121
Other
699
2,213		 College Consolidated
2022
2021
£'000
£'000
111,780
123,220
7,000
-
874
-
119,654
123,220
College Consolidated
2022
2021
£'000
£'000
591
586
41
56
632
642
College Consolidated
2022
2021
£'000
£'000
243
361
306
817
807
-
59
104
699
600
2,114
1,882		 College
2021
£'000
123,220
7,000
-
130,220
College
2021
£'000
586
18
604
College
2021
£'000
62
817
557
43
600
2,079
13 CASH AND CASH EQUIVALENTS
Consolidated
2022
£'000
Bank Deposits
3,116
Current Accounts and in Hand
2,903
6,019		 College Consolidated
2022
2021
£'000
£'000
3,116
3,525
1,448
1,824
4,564
5,349		 College
2021
£'000
3,525
639
4,164

37

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

14 CREDITORS: AMOUNTS FALLING DUE
Consolidated
WITHIN ONE YEAR
2022
£'000
Trade Creditors
974
Members of the College
639
University Fees
131
Contribution to Colleges Fund
35
Social Security and other Taxation payable
515
Other
2,650
4,944
15 CREDITORS: AMOUNTS FALLING DUE
Consolidated
AFTER ONE YEAR
2022
£'000
Other Creditors
137
College Bonds
24,000
24,137		 College Consolidated
2022
2021
£'000
£'000
711
399
639
1,077
131
102
35
27
361
354
1,193
2,884
3,070
4,843
College Consolidated
2022
2021
£'000
£'000
137
268
24,000
24,000
24,137
24,268		 College
2021
£'000
298
1,077
102
27
278
1,287
3,069
College
2021
£'000
268
24,000
24,268

During 2013/14 the College issued a long term bond of £11m. Tranche 1 is for £6,360k and interest is charged at 4.40%. Tranche 2 is for £4,640k and interest is charged at 4.45%. £3,533k is due for repayment in October 2043, £4,640k is due for repayment in January 2044 and the remaining £2,827k is to be repaid in October 2053.

The College issued a second bond in 2017/18 for £13m. Interest is charged at 2.42% and the bond is due to be repaid in October 2057.

16 PENSION PROVISIONS

Pension Provision 2021/22
Balance at 1 July 2021
Movement in the year:
Recognised in Income and Expenditure
Contributions paid by the College
Finance cost
Balance as at 30 June 2022
Actuarial (gain)/loss recognised in Statement of
Comprehensive Income and Expenditure		 USS
2022
£'000
818
1,474
(37)
7
-
2,262		 CCFPS
2022
£'000
-
-
(21)
22
(1)
-		 Total
2022
£'000
818
1,474
(58)
29
(1)
2,262

38

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

----- Start of picture text -----
16 PENSION PROVISIONS (CONT)
USS CCFPS Total
Pension Provision 2020/21 2021 2021 2021
£'000 £'000 £'000
Balance at 1 July 2020 909 1,268 2,177
Movement in the year:
-
Recognised in Income and Expenditure (58) (58)
Contributions paid by the College (40) (21) (61)
Finance cost 7 36 43
Actuarial (gain)/loss recognised in Statement of -
(1,283) (1,283)
Comprehensive Income and Expenditure
Balance as at 30 June 2021 818 - 818
17 ENDOWMENT RESERVE
Restricted net assets relating to endowments are as follows:
CONSOLIDATED/COLLEGE 2021/22 Restricted Unrestricted Total
Permanent Permanent 2022
£'000 £'000 £'000
Balance at 1 July 2021 19,972 19,535 39,507
New Endowments Received 6 - 6
-
Capital withdrawn (2,880) (2,880)
6 (2,880) (2,874)
Increase in Market Value of
Investments (1,899) (1,882) (3,781)
-
Plus: Capital withdrawn to Income 2,880 2,880
(1,899) 998 (901)
Balance as at 30 June 2022 18,079 17,653 35,732
Analysis by Type of Purpose Restricted Unrestricted Total
Permanent Permanent 2022
£'000 £'000 £'000
Archives 9,983 - 9,983
Bursary 425 - 425
Endowment 80 - 80
Fellowship 505 - 505
JRF 2,625 - 2,625
Library 288 - 288
Other 5 - 5
Prize 48 - 48
-
Studentship/Scholarship 4,012 4,012
Travel Funds 108 - 108
-
Corporate Capital 17,653 17,653
18,079 17,653 35,732
Analysis by Asset
Investments 18,079 17,653 35,732
18,079 17,653 35,732
----- End of picture text -----

39

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

17 ENDOWMENT RESERVE (CONT)

Restricted net assets relating to endowments are as follows:

CONSOLIDATED/COLLEGE 2020/21
Balance as at 1 July 2020
New Endowments Received
Capital withdrawn
Increase in Market Value of
Investments
Plus: Capital withdrawn to Income
Balance as at 30 June 2021
Analysis by Type of Purpose
Archives
Bursary
Endowment
Fellowship
JRF
Library
Other
Prize
Studentship/Scholarship
Travel Funds
Corporate Capital
Analysis by Asset
Investments		 Restricted
Permanent
£'000
17,110
4
-
4
2,858
-
2,858
19,972
Restricted
Permanent
£'000
11,047
464
88
559
2,878
318
6
53
4,440
119
-
19,972
19,972
19,972		 Unrestricted
Permanent
£'000
16,736
-
(2,931)
(2,931)
2,799
2,931
5,730
19,535
Unrestricted
Permanent
£'000
-
-
-
-
-
-
-
-
-
-
19,535
19,535
19,535
19,535		 Total
2021
£'000
33,846
4
(2,931)
(2,927)
5,657
2,931
8,588
39,507
Total
2021
£'000
11,047
464
88
559
2,878
318
6
53
4,440
119
19,535
39,507
-
39,507
39,507

40

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

18 RESTRICTED RESERVES

Reserves with restrictions are as follows:
CONSOLIDATED/COLLEGE 2021/22
Balance at 1 July 2021
Capital
Accumulated Income
New Grants
New Donations
Endowment Return Transferred
Expenditure
Capital Grants Utilised
Increase in Market Value of Investments
Balance as at 30 June 2022
Balance as at 30 June 2022
Capital
Accumulated Income
CONSOLIDATED/COLLEGE
Analysis by Type of Purpose
Archives
Building
Bursary
Development Office
Endowment
Fellowship
JRF
Library
Other
Prize
Research Funds
Studentship/Scholarship
Travel Funds		 £'000
667
-
667
-
702
-
(6)
-
-
1,363
1,363
-
1,363
£'000
-
1,363
-
-
-
-
-
-
-
-
-
-
-
1,363
Capital
Grants
Unspent
Capital
Grants
Unspent		 £'000
-
9,878
9,878
-
1,019
710
(702)
-
(949)
9,956
-
9,956
9,956
£'000
1,256
33
3,048
183
37
1,436
1,060
71
695
74
54
1,887
122
9,956
Permanent
Unspent &
Other
Restricted
Income
Permanent
Unspent &
Other
Restricted
Income		 £'000
7,905
-
7,905
296
1,839
539
(894)
-
(465)
9,220
9,220
-
9,220
£'000
996
8
2,702
215
224
1,430
122
9
1,938
123
30
1,378
45
9,220
Restricted
Expendable
Endowment
Restricted
Expendable
Endowment		 Total
2022
£'000
8,572
9,878
18,450
296
3,560
1,249
(1,602)
-
(1,414)
20,539
10,583
9,956
20,539
Total
2022
£'000
2,252
1,404
5,750
398
261
2,866
1,182
80
2,633
197
84
3,265
167
20,539

41

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

18 RESTRICTED RESERVES (CONT)

Reserves with restrictions are as follows:
CONSOLIDATED/COLLEGE 2020/21
Balance as at 1 July 2020
Capital
Accumulated Income
New Grants
New Donations
Endowment Return Transferred
Expenditure
Capital Grants Utilised
Increase in Market Value of Investments
Balance as at 30 June 2021
Balance as at 30 June 2021
Capital
Accumulated Income
CONSOLIDATED/COLLEGE
Analysis by Type of Purpose
Archives
Building
Bursary
Development Office
Endowment
Fellowship
JRF
Library
Other
Prize
Research Funds
Studentship/Scholarship
Travel Funds		 £'000
675
-
675
-
-
(8)
-
-
667
667
-
667
£'000
-
667
-
-
-
-
-
-
-
-
-
-
-
667
Capital
Grants
Unspent
Capital
Grants
Unspent		 £'000
-
7,715
7,715
-
817
697
(650)
-
1,299
9,878
-
9,878
9,878
£'000
1,438
33
3,132
173
37
1,051
1,110
65
618
76
55
1,970
120
9,878
Permanent
Unspent &
Other
Restricted
Income
Permanent
Unspent &
Other
Restricted
Income		 £'000
6,853
-
6,853
556
463
(570)
-
603
7,905
7,905
-
7,905
£'000
464
-
2,542
229
239
1,576
134
8
2,140
132
33
377
31
7,905
Restricted
Expendable
Endowment
Restricted
Expendable
Endowment		 Total
2021
£'000
7,528
7,715
15,243
1,373
1,160
(1,228)
-
1,902
18,450
8,572
9,878
18,450
Total
2021
£'000
1,902
700
5,674
402
276
2,627
1,244
73
2,758
208
88
2,347
151
18,450

42

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

19 MEMORANDUM OF UNAPPLIED TOTAL RETURN

Included within reserves the following amounts represent the unapplied total return of the College:

Unapplied Total Return at 1 July 2021
Unapplied Total Return for the Year (see note 3b)
Unapplied Total Return at 30 June 2022
20 RECONCILIATION OF CONSOLIDATED SURPLUS FOR THE YEAR
TO NET CASH INFLOW FROM OPERATING ACTIVITIES
(Deficit)/Surplus for the Year
Adjustment for Non-cash Items
Depreciation
(Loss)/Gain on Endowments, Donations and Investment Property
(Decrease) in Stocks
Increase in Debtors
(Decrease)/Increase in Creditors
Pension Costs
Adjustment for Investing or Financing Activities
Investment Income
Interest Payable
Net Cash Inflow from Operating Activities
21 CASH FLOWS FROM INVESTING ACTIVITIES
Payments to Acquire Non-current Assets
Purchase of Investment Assets
Sale of Investment Assets
Investment Income
Total Cash Outflow from Investing Activities
22 CASH FLOWS FROM FINANCING ACTIVITIES
Interest Payable and Charges
Total Cash Outflow from Financing Activities		 2022
£'000
73,959
(12,130)
61,829
2022
£'000
(10,449)
2,715
9,249
(13)
(331)
(30)
1,445
(1,591)
803
1,798
2022
£'000
(3,232)
(14,564)
15,880
1,591
(325)
2022
£'000
(803)
(803)		 2021
£'000
56,618
17,341
73,959
2021
£'000
16,303
2,640
(20,281)
41
(362)
(401)
(78)
(1,270)
803
(2,605)
2021
£'000
(1,690)
(20,881)
22,904
1,270
1,603
2021
£'000
(803)
(803)

43

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

23 ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at Bank and in Hand
Net Funds		 At Beginning
of Year
£'000
5,349
5,349		 Cash
Flows
£'000
670
670		 At End
of Year
£'000
6,019
6,019

24 CONSOLIDATED RECONCILIATION AND ANALYSIS OF NET DEBT

Cash and Cash Equivalents
Borrowings:
Amounts falling due after one year
College Bonds
Total Net Debt
25 CAPITAL COMMITMENTS
CONSOLIDATED/COLLEGE
Authorised and Contracted		 At 1 July
2021
£'000
5,349
24,000
(18,651)		 Cash Flows
£'000
670
-
670
2022
£'000
431		 At 30
June
2020
£'000
6,019
24,000
(17,981)
2021
£'000
722

26 LEASE OBLIGATIONS

At 30 June 2022 the College had commitments under non-cancellable operating leases as follows:

Other
Expiring within one year
Expiring between two and five years		 2022
£'000
10
13		 2021
£'000
9
30

44

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

27 FINANCIAL INSTRUMENTS

Financial Assets
Financial assets at fair value though Statement of Comprehensive Income
Listed Equity Investments (note 10) 111,780 123,220
Financial assets that are debt instruments measured at amortised cost
Cash and Cash Equivalents (notes 10,13) 6,893 5,349
Trade Debtors 1,087 361
Other Debtors 1,126 1,521
Financial Liabilities
Financial liabilities measured at amortised cost
College Bond 24,000 24,000
Trade Creditors 974 399
Other Creditors 4,107 4,712

28 PENSION SCHEMES

The College's employees belong to two principal pension schemes, the Universities Superannuation Scheme (USS) and the Cambridge Colleges Federated Pension Scheme (CCFPS).

Universities Superannuation Scheme

The College participates in Universities Superannuation Scheme. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual Colleges and a scheme-wide contribution rate is set. The College is therefore exposed to actuarial risks associated with other Colleges’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, the College therefore accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme. Since the College has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the College recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) with related expenses being recognised through the profit and loss account.

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

The total cost charged to the profit and loss account is £395k (2021: £417k).

The latest available complete actuarial valuation of the Retirement Income Builder is at 31 March 2018 (the valuation date), which was carried out using the projected unit method. A valuation as at 31 March 2020 is underway but not yet complete. Since the College 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.

45

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

28 PENSION SCHEMES (CONT)

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

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

CPI assumption

Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves less: 1.1%pa to 2030, reducing linearly by 0.1%pa to a long-term difference of 0.1%pa from 2040.

Pension increases (subject to CPI assumptions plus 0.05% a floor of 0%) Discount rate (forward rates) Fixed interest gilt yield curve plus: Pre-retirement - 2.75%pa Post-retirement - 1.00%pa

The main demographic assumption used relates to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 20208 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, am initial addition of 0.5%pa 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:

The current life expectancies on retirement at age 65 are:
2022 2021
Valuation Valuation
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
Assumptions re Salary Growth Rate 3.18% 3.00%
Discount rate 3.31% 0.89%

46

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

28 PENSION SCHEMES (CONT)

Cambridge Colleges Federated Pension Scheme

The College also operates a defined benefit pension plan for the College's employees of the Cambridge Colleges' Federated Pension Scheme. This College section closed for all accrual on 31 March 2007 when all active members were made deferred.

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 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:

----- Start of picture text -----
|||| |---|---|---| |30/06/22|30/06/21| |% pa|% pa| |Discount rate|3.80%|1.80%| |Retail Price Index (RPI) assumption|3.45%|3.40%| |Consumer Price Index (CPI)|2.75%|2.60%| |Pension Increases (RPI max 5% pa)|3.30%|3.30%|

----- End of picture text -----

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:

Employee Benefit Obligations

----- Start of picture text -----
|||| |---|---|---| |The amounts recognised in the balance sheet as at 30 June 2021 are as follows:|2022|2021| |£'000|£'000| |Present value of scheme liabilities|(7,465)|(9,214)| |Market value of scheme assets|7,577|9,213| |-| |Adjustment for non-recoverable surplus|(112)| |Deficit in the Scheme|-|(1)| |The following amounts have been recognised within the income and expenditure account:|2022|2021| |£'000|£'000| |Administrative expenses|20|17| |Interest on net defined benefit liability|-|19| |20|36|

----- End of picture text -----

47

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

28 PENSION SCHEMES (CONT)

Changes in the present value of the scheme liabilities are as follows:
2022
£'000
Present value of scheme liabilities at beginning of period
9,214
Interest on plan liabilities
163
Actuarial (losses)/gains
(1,548)
Benefits paid
(364)
Present value of scheme liabilities at end of period
7,465
Changes in the fair value scheme assets are as follows:
2022
£'000
Market value of scheme assets at beginning of period
9,213
Return on assets, less interest included in income and expenditure
(1,431)
Administrative expenses
(25)
Contributions by employer
21
Interest on plan assets
163
Benefits and expenses paid
(364)
Market value of plan assets at end of period
7,577
Actual return on plan assets
(1,269)
2022
Equities
52%
Bonds and Cash
34%
Property
14%
100%
The major categories of scheme assets as a percentage of total scheme assets are as follows:		 2021
£'000
10,145
145
(721)
(355)
9,214
2021
£'000
8,877
567
(23)
21
126
(355)
9,213
693
2021
48%
42%
10%
100%

Analysis of the remeasurement of the net defined benefit liability recognised in Other Comprehensive Income (OCI) for the year ended 30 June 2020 is as follows:

Return on assets less interest included in Comprehensive Income & Expenditure
Expected less actual plan expenses
Experience gains and losses arising on plan liabilities
Changes in assumptions underlying the present value of plan liabilities
Change in non-recoverable surplus
Remeasurement of net defined benefit liability recognised in OCI		 2022
£'000
(1,431)
(4)
(653)
2,200
(112)
-		 2021
£'000
567
(6)
507
214
-
1,282

48

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

28 PENSION SCHEMES (CONT)

Movement in surplus/(deficit) during the years are as follows:
Net defined benefit liability at beginning of year
Contributions paid by the College
Recognised in Comprehensive Income & Expenditure
Actuarial gain
Net defined benefit liability at end of year		 2022
£'000
(1)
21
(20)
-
-		 2021
£'000
(1,268)
21
(36)
1,282
(1)

29 RELATED PARTY TRANSACTIONS

Owing to the nature of the College's operations and the composition of the College Council (or equivalent), it is inevitable that transactions will take place with organisations in which a member of the College Council may have an interest. All transactions involving organisations in which a member of the College Countil may have an interest are conducted at arm's length and in accordance with the College's normal procedures.

The College maintains a register of interests for all College Council members and where any member of the College Council has a material interest in a College matter they are required to declare that fact.

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

Fellows are remunerated for teaching, research and other duties within the College. Fellows are billed for any private catering.

The salaries paid to Trustees (see note 8) in the year are summarised in the table below:

£
£
0
10,000
10,001
20,000
20,001
30,000
30,001
40,000
40,001
50,000
50,001
60,000
60,001
70,000
70,001
80,000
80,001
90,000
90,001
100,000
100,001
110,000		 2022
Number
7
5
2
0
1
1
1
1
0
0
1
19		 2021
Number
5
4
4
0
0
1
0
0
1
1
0
16

The total Trustee salaries were £485k (2021: £414k).

49

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2022

29 RELATED PARTY TRANSACTIONS (CONT)

The Trustees were also paid other taxable benefits (including associated employer National Insurance and employer contributions to pensions) which totalled £122k for the year (2021: £107k).

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 registered and operating in England and Wales.

The College has taken advantage of the exemption within section 33 of FRS 102 not to disclose transactions with wholly owned group companies that are related parties.

30 GROUP STRUCTURE

The College has 3 fully owned subsidiaries:

The Møller Institute Ltd - Residential and Day Conferences
Churchill Conferences Ltd - Residential and Day Conferences
Churchill Residences II Ltd - Residential Construction

The activities of the Møller Institute Ltd, Churchill Conferences and Churchill Residences II Ltd have been consolidated with those of the College.

2022 2021
Turnover £'000 £'000
The Møller Institute Ltd 3,527 1,181
Churchill Conferences Ltd 330 2
Churchill Residences II Ltd Nil 112
Net Assets
The Møller Institute Ltd 8,040 7,930
Churchill Conferences Ltd 19 17
Churchill Residences II Ltd - -

50