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2023-06-30-accounts

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

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 2023

Contents Page
Reference and Administrative Details 2
Operating and Financial Review 3 - 11
Responsibilities of the College Council 11
Independent Auditors' Report 12 - 14
Statement of Principal Accounting Policies 15 - 21
Consolidated Statement of Comprehensive Income and Expenditure 22
College Statement of Comprehensive Income and Expenditure 23
Consolidated Statement of Changes in Reserves 24
College Statement of Changes in Reserves 25
Consolidated Balance Sheet 26
Consolidated Cash Flow Statement 27
Notes to Financial Statements 28 - 49

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 30 JUNE 2023

Legal Name Churchill College in the University of Cambridge Address Churchill College, Storey's Way, Cambridge, CB3 0DS Charity Registration Number 1137476 VAT Registration Number GB 732 155 751

Trustees

The Trustees of the College are the members of the College Council. The Trustees who served from 1 July 2022 until the signing of these accounts are:

Master Prof Dame Athene Donald (Chair)
Vice-Master Prof A Webber to 01/09/22 Dr A Barbrook from 04/10/22
Senior Tutor Dr R Monson
Bursar Mrs T M James
Postgraduate Senior Tutor Dr E DeMarrais to 30/08/22 Dr M Kilkenny 04/10/22 to 30/09/23
Dr A Lockhart from 01/10/23
MCR President Ms M Taylor-Williams to 17/03/23 Mr R McCoy from 18/03/23
MCR Council Member Dr E Benyei to 04/12/22 Ms S Tichaud-Dominguez 08/03/23 to 30/07/23
Mr K Heal from 01/10/23
JCR President Ms A Rees to 30/07/22 Ms S Pearce to 01/10/22 to 30/07/23
Ms S Hughes from 01/10/23
JCR Member Mr T Kilburn to 30/07/22 Ms S Syposz from 01/10/22 to 30/07/23
Ms S McRae from 01/10/23
Staff Members Ms E Davis, Mrs R Cresswell
Fellows Dr C Hicks Dr M Holmes to 31/12/22
Dr D Liang Prof M Kramer to 30/09/23
Prof B Loewe Dr M Linterman to 31/12/22
Dr C McEniery Mr A Reid to 30/09/23
Dr J Padley Professor Ross Anderson from 01/10/23
Dr B Reddy Prof Sir John Aston from 01/10/23
Senior Officers
Master Prof Dame Athene Donald
Vice-Master Prof A Webber to 01/09/22 Dr A Barbrook from 04/10/22
Senior Tutor Dr R Monson
Bursar Mrs T M James
Postgraduate Senior Tutor Dr E DeMarrais to 30/08/22 Dr M Kilkenny 04/10/22 to 30/09/23
Dr A Lockhart from 01/10/23
Principal Advisers
Auditors Bankers
Price Bailey LLP Lloyds Bank
Tennyson House 3 Sidney Street
Cambridge Business Park Cambridge
Cambridge, CB3 0WZ CB2 3HG
Investment Fund and Property Managers
Comgest GEM Plus Fund Heronbridge Investment
Evenlode Global Equity LGT Capital Partners
Fundsmith LLP Lindsell Train Global Funds
Legal Advisers
Mills & Reeve LLP Hewitsons LLP Greenwoods GRM LLP
Botanic House Shakespeare House Compass House, Vision Park
98-100 Hills Road 42 Newmarket Road Impington, Histon
Cambridge, CB2 1PH Cambridge, CB5 8EP Cambridge, CB24 9AD

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW

FOR THE YEAR ENDED 30 JUNE 2023

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 900 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 2023

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 2043 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.

Achievements and Performance

Students of the College continue to excel in their studies and work tremendously hard. Final results for more than half of students sitting exams were not available at the start of the new academic year due to industrial action within the Higher Education sector. Despite these challenges, our students continue to push themselves and cope admirably. It is anticipated that final results will be available by the end of November 2023.

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

2023 2022 2021 2020 2019 2018
Applications 83.3% 83.8% 83.2% 85.1% 81.6% 83.3%
Offers 77.8% 80.7% 76.5% 76.5% 71.4% 76.6%
Accepted 76.5% 79.8% 75.4% 76.2% 62.2% 76.5%

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

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Archives Centre

The year saw the Centre begin the celebration of its 50[th] anniversary, with an open day for all members of the College community, an online exhibition project with Anglia Ruskin University students, and a major social media campaign.

New accessions included further papers of the Esher family and historian Correlli Barnett, the archives of Sir John Tusa and material relating to the Bletchley Park codebreakers. Collections processed during the year included the papers of Sir Hersch Lauterpacht and Baroness Trumpington.

The Centre invested in a new digital preservation management system and hosted two researchers from the University of Fort Hare in South Africa. 404 researchers registered with the Centre and 8415 files were issued in the reading rooms. Over 90,000 images were captured and supplied for researchers (most as part of the remote access service). Fuller details are available in the Archives Centre’s own annual report.

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) Surplus for the Year

The College Statement of Comprehensive Income and Expenditure (SOCIE) shows a surplus of £10.8m for the year, compared with a deficit of £10.6m in 2021/22. 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 surplus of £0.9m for 2022/23 compared with a deficit of £1.1m in 2021/22. The following table shows how the management accounts reconcile to the SOCIE:

----- Start of picture text -----
2022/23 2021/22
£’000 £’000
Surplus/(Deficit) per Management accounts 947 -1,102
FRS102 Accruals/Provisions (sabbaticals, unpaid 173 189
holiday, fixed-term contracts)
USS Pension scheme deficit recovery adjustment 269 -1,444
Actuarial adjustment re CCFPS pension scheme -409 1
Long term donations/investment income 3,182 3,920
Investment gains/(losses) 9,526 -9,249
Investment in I&E drawn from investment gains -2,846 -2,880
Surplus/(Loss) per SOCIE 10,842 -10,565
----- End of picture text -----

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

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The most significant variation between the results for 2022/23 and 2021/22 is the valuation of the College’s investments. The value increased by over £9.5m in 2022/23 compared with a fall in value of over £9.2m in 2021/22.

Another significant change concerns the provision required in respect of the USS deficit recovery plan. This was a “refund” of £0.3m in 2022/23 compared with a charge of £1.4m in 2021/22.

The College’s management accounts have returned to a surplus, following a large deficit in the previous financial year. This reflects the return of the College’s commercial activity as well a return to profit by the Moller Institute. The Moller Institute will make a donation of £716k based on its 2022/23 results, in addition to paying rent to College for 6 months of the year.

Although recruitment and retention of staff continued to be challenging in 2022/23, the College was able to fill vacancies and meet the staffing needs of its commercial activities.

b) Academic Fees and Charges

These are primarily the tuition fees paid by or on behalf of students and they increased in total by 3.3% compared with 2021/22. There was a small reduction in fee-paying student numbers compared with 2021/22, particularly postgraduate students. 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 £4.7m compared with £3.9m in 2021/22, though this includes legacy income of £1.5m received after the year end. The College will receive gift aid payments, under Deeds of Covenant, from the Moller Institute of £714k and £143k from Churchill Conferences Ltd in respect of 2022/23.There were no gift aided donations in 2021/22.

Rent and service charges received from the Møller Institute of £275k are included in the figures for income from accommodation, catering and conferences compared with £Nil for 2021/22.

The total contribution to College from the Møller Institute is this expected to be £989k for 2022/23.

d) Endowment and Investment Performance

The College’s Amalgamated Investment Fund (AIF), which makes up over 90% of the College’s investments, delivered a positive return of 9.24% compared with a negative total return of 5.95% the previous year. The return is slightly above the College’s benchmark return for the year of 9.04%. New funds of £800k were invested in the Amalgamated Investment Fund just before the year end and no funds were withdrawn during the year.

The College drew down a total of £5.0m in accordance with the agreed formula for smoothing total return from year to year compared with the drawdown of £4.5m the previous year. The drawdown per unit was 4.3% of the value at 30 June 2023 compared with 4.07% per unit as at 30 June 2022. The value of a unit in the AIF increased from £18.90 at 30 June 2022 to £19.79 at 30 June 2023.

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 returned to pre-pandemic levels.

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

f) Maintenance of Buildings

The College spent more than £3.3 million on capital projects during the year.

Major projects undertaken in 2022/23 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 16.2%. This reflected the filling of vacancies and increased staffing to support the commercial activities of the College. Non-academic staff received a cost of living increase in July 2022 which ranged from 2% to 4%, with the lower grades receiving the highest increase. A further increase of 3% was awarded in October 2022. This was in response to the high rate of inflation and cost of living pressures which were present during the year. Increments of circa 3% were also awarded to those who were eligible. In addition, the scheme which allows the awarding of discretionary increments to reflect excellent performance, was reinstated during 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 online training available for all staff to use.

Employer’s contributions to the USS pension increased to 21.6% on 1 April 2022 and remained unchanged during the year. 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 a refund in 2022/23 of £269k compared with a charge of £1.4m in 2021/22.

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 £134m though about £89m of this is in the form of operational assets.

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

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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.

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 is 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 College’s commercial activities have returned to their pre-pandemic levels and hence a very important income stream has been reinstated. The College continues to offer hybrid events and bookings, using the equipment and expertise acquired during the pandemic. The pipeline for events in 2023/24 is very positive.

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

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 College has started to see the impact of higher gas prices, having had relatively low exposure to this last 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 College continues to improve and maintain its buildings. Major projects planned for 2023/24 include:

The Archives Centre will be holding a series of events to celebrate its 50[th] Anniversary and developing plans for the future expansion of the Centre.

The appointment of the eighth Master of the College will be announced during the year, with the new Master taking up their role in Michaelmas Term 2024.

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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 Audit and Risk 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 report any concerns to the Trustees.

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

  1. It is the duty of the Finance Committee to keep under review the financial affairs of the College and to advise the Council on all aspects of College financial policy including ensuring that changes of policy are made in the light of the Audit and Risk Committee’s comments on the annual accounts.

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

OPERATING AND FINANCIAL REVIEW (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

Membership of the Finance Committee in 2022/23 included the Master, Vice-Master, Bursar, Senior Tutor, Senior Postgraduate Tutor, Professor D Coyle, Professor T Minshall, Dr A Reid, Dr Toner, Professor A Webb, Mr N Canetty-Clarke (external member), Mr A Proctor (external member), Mr S Sattar (external member) and representatives of the JCR and MCR.

  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

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  1. The College’s Trustees (members of the College Council) during the year ended 30 June 2023 are set out on page 2.

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 2023 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:

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CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

RESPONSIBILITIES OF THE COLLEGE COUNCIL

FOR THE YEAR ENDED 30 JUNE 2023

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:������������������

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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 2023

Opinion

We have audited the financial statements of Churchill College (the ‘College’) and its subsidiaries (the 'group') for the year ended 30 June 2023 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:

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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 2023

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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

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of the College Council

As explained more fully in the trustees’ responsibilities statement set out on page 11, 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 2023

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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 non-compliance. 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-and-guidance-forauditors/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: 8 December 2023

14

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES

FOR THE YEAR ENDED 30 JUNE 2023

__________________

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

Both the academic and commercial activities of the College returned to their normal levels during 2022/23, as the impact of the Covid-19 pandemic diminished. The College therefore expects to continue as a going concern for the foreseeable future.

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:

Details of the subsidiary undertakings are set out in note 30.

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.

15

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

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.

16

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

h. Cambridge Bursary Scheme

In 2022/23, 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 £179k is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows:

Income £132k Expenditure £311k

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% - 20% per annum Motor vehicles and general equipment 10% - 20% per annum Computer equipment 10% - 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.

17

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

__________________

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.

18

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

For financial assets carried at amortised cost the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows, discounted at the asset’s original effective interest rate. Other financial assets, including investments in equity instruments, which are not subsidiaries or joint ventures, are initially measured at fair value which is typically the transaction price. These assets are subsequently carried at fair value and changes in fair value at the reporting date are recognised in the Statement of Comprehensive Income. Where the investment in equity instruments is not publicly traded and where the fair value cannot be reliably measured, the assets are measured at cost less impairment. Investments in property or other physical assets do not constitute a financial instrument and are not included.

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

Financial Liabilities

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

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

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

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

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

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

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.

19

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

Provisions

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

Taxation

The College is a registered charity (number 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.

20

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

Critical Accounting Estimates and Judgements

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

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

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

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

21

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE

FOR THE YEAR ENDED 30 JUNE 2023

----- Start of picture text -----
2023 2022
CONSOLIDATED Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
INCOME Note
Academic Fees and Charges 1 4,146 338 - 4,485 4,063 296 - 4,359
Residence, Catering and Conferences 2 13,312 1 - 13,313 9,338 - - 9,338
Endowment Return Transferred 3 3,549 1,413 (4,962) - 3,215 1,249 (4,464) -
Other Investment Income 3 116 - 2,116 2,232 7 - 1,583 1,590
Total Income before Donations and Endowments 21,123 1,752 (2,846) 20,029 16,622 1,545 (2,880) 15,287
Donations 577 511 - 1,089 404 1,018 - 1,422
New Endowments - 2,242 5 2,247 - 1,840 6 1,845
Other Capital Donations for Assets - 461 - 461 - 702 - 702
Total Income 21,700 4,966 (2,841) 23,825 17,025 5,105 (2,874) 19,256
EXPENDITURE
Education 4 5,620 1,071 - 6,691 6,453 733 - 7,186
Residence, Catering and Conferences 5 13,657 3 - 13,660 11,733 6 - 11,740
Other Expenditure 6 1,037 953 - 1,990 632 863 - 1,495
Contribution Under Statute G,II 32 - - 32 35 - - 35
- -
Total Expenditure 20,345 2,027 22,372 18,853 1,603 20,456
Surplus/(Deficit) before other Gains and Losses 1,355 2,940 (2,841) 1,453 (1,828) 3,503 (2,874) (1,200)
Gains/(Losses) on Investments 4,363 642 4,521 9,526 (6,934) (1,414) (900) (9,249)
Surplus/(Deficit) for the Year 5,717 3,582 1,680 10,979 (8,762) 2,089 (3,775) (10,448)
Other Comprehensive Income
Actuarial (Loss)/Gain in Respect of Pension Schemes 16 (409) - - (409) 1 - - 1
Total Comprehensive Income/(Expenditure) for the Year 5,308 3,582 1,680 10,570 (8,762) 2,089 (3,775) (10,448)
----- End of picture text -----

22

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

COLLEGE STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE

FOR THE YEAR ENDED 30 JUNE 2023

----- Start of picture text -----
2023 2022
COLLEGE Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
INCOME Note
Academic Fees and Charges 1 4,146 338 - 4,485 4,063 296 - 4,359
Residence, Catering and Conferences 2 8,083 1 - 8,084 5,773 - - 5,773
Endowment Return Transferred 3 3,549 1,413 (4,962) - 3,215 1,249 (4,464) -
Other Investment Income 3 96 - 2,116 2,212 7 - 1,583 1,590
Total Income before Donations and Endowments 15,874 1,752 (2,846) 14,781 13,057 1,545 (2,880) 11,722
Donations 1,440 511 - 1,951 345 1,018 - 1,363
New Endowments - 2,242 5 2,247 - 1,840 6 1,845
Other Capital Donations for Assets - 461 - 461 - 702 - 702
Total Income 17,314 4,966 (2,841) 19,439 13,402 5,105 (2,874) 15,632
EXPENDITURE
Education 4 5,620 1,071 - 6,691 6,453 733 - 7,186
Residence, Catering and Conferences 5 8,999 3 - 9,002 8,226 6 - 8,232
Other Expenditure 6 1,037 953 - 1,990 632 863 - 1,495
Contribution Under Statute G,II 32 - - 32 35 - - 35
- -
Total Expenditure 15,688 2,027 17,714 15,346 1,603 16,949
Surplus/(Deficit) before other Gains and Losses 1,626 2,940 (2,841) 1,725 (1,945) 3,503 (2,874) (1,316)
Gains/(Losses on Investments 4,363 642 4,521 9,526 (6,934) (1,414) (900) (9,249)
Surplus/(Deficit) for the Year 5,989 3,582 1,680 11,251 (8,879) 2,089 (3,775) (10,565)
Other Comprehensive Income
Actuarial (Loss)/Gain in Respect of Pension Schemes 16 (409) - - (409) 1 - - 1
Total Comprehensive Income/(Expenditure) for the Year 5,580 3,582 1,680 10,842 (8,879) 2,089 (3,775) (10,565)
----- End of picture text -----

23

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

CONSOLIDATED STATEMENT OF CHANGES IN RESERVES

FOR THE YEAR ENDED 30 JUNE 2023

CONSOLIDATED
Balance at 1 July 2022
Other Comprehensive Income
Balance at 30 June 2023
Surplus from statement of compehensive income
and expenditure		 Unrestricted
Restricted
Endowment
£'000
£'000
£'000
129,335
20,539
35,732
5,717
3,582
1,680
(409)
-
-
134,643
24,121
37,412
Income and Expenditure Reserve		 Total
£'000
185,606
10,979
(409)
196,176
CONSOLIDATED
Balance at 1 July 2021
Other Comprehensive Income
Balance at 30 June 2022
(Deficit)/Surplus from statement of compehensive
income and expenditure		 Unrestricted
Restricted
Endowment
£'000
£'000
£'000
138,097
18,450
39,507
(8,762)
2,089
(3,775)
1
-
-
129,335
20,539
35,732

Income and Expenditure Reserve		 Total
£'000
196,054
(10,449)
1
185,606

24

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

COLLEGE STATEMENT OF CHANGES IN RESERVES

FOR THE YEAR ENDED 30 JUNE 2023

----- Start of picture text -----
COLLEGE Income and Expenditure Reserve
Unrestricted Restricted Endowment Total
£'000 £'000 £'000 £'000
Balance at 1 July 2022 128,544 20,539 35,732 184,815
Surplus from statement of compehensive income
5,989 3,582 1,680 11,251
and expenditure
- -
Other Comprehensive Income (409) (409)
Balance at 30 June 2023 134,123 24,121 37,412 195,656
COLLEGE Income and Expenditure Reserve
Unrestricted Restricted Endowment Total
£'000 £'000 £'000 £'000
Balance at 1 July 2021 137,423 18,450 39,507 195,380
(Deficit)/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
----- End of picture text -----

25

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2023

----- Start of picture text -----
Consolidated College Consolidated College
2023 2023 2022 2022
Note £'000 £'000 £'000 £'000
Non-Current Assets
Fixed Assets Assets 9 96,032 88,298 95,408 87,320
Investments 10 120,133 127,134 112,654 119,654
216,165 215,432 208,062 206,974
CURRENT ASSETS
Stock 11 689 659 655 632
Trade and Other Receiveables 12 4,217 4,949 2,213 2,114
Cash and cash equivalents 13 7,575 4,839 6,019 4,564
12,481 10,448 8,887 7,310
Creditors: Amounts Falling Due Within
One Year 14 (5,931) (3,685) (4,944) (3,070)
NET CURRENT ASSETS 6,550 6,764 3,943 4,240
Creditors: Amounts Falling Due After
One Year 15 (24,141) (24,141) (24,137) (24,137)
NET ASSETS EXCLUDING PENSION
PROVISION 198,574 198,054 187,868 187,077
Pension Provision 16 (2,398) (2,398) (2,262) (2,262)
NET ASSETS INCLUDING PENSION
PROVISION 196,176 195,656 185,606 184,815
RESTRICTED RESERVES
Income and Expenditure Reserves
Endowment Reserve 17 37,412 37,412 35,732 35,732
Restricted Reserve 18 24,121 24,121 20,539 20,539
61,533 61,533 56,271 56,271
UNRESTRICTED RESERVES
Income and Expenditure Reserve
Unrestricted 134,643 134,123 129,335 128,544
196,176 195,656 185,606 184,815
----- End of picture text -----

The financial statements were approved by College Council ������������������������������������������������

Dame Athene Donald Master

Mrs T M James Bursar

The notes on pages 28 to 49 form part of these accounts.

26

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 JUNE 2023

----- Start of picture text -----
CONSOLIDATED 2023 2022
Note £'000 £'000
Net Cash Inflow from Operating Activities 20 1,414 1,799
Cash Flows from Investing Activities 21 944 (324)
Cash Flows from Financing Activities 22 (803) (803)
Increase/(Decrease) in Cash and Cash Equivalents in Year 1,555 671
Cash and Cash Equivalents at Beginning of Year 6,019 5,348
Cash and Cash Equivalents at End of Year 7,575 6,019
----- End of picture text -----

27

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

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		 2023
£'000
1,888
954
1,053
3,896
589
4,485		 2022
£'000
2,007
688
1,075
3,770
589
4,359

Other income includes bursary and grant payments received on behalf of specific students and fellows.

2 INCOME FROM ACCOMMODATION, CATERING AND CONFERENCES

Accommodation
College Members
Conferences
International Programmes
Catering
College Members
Conferences
International Programmes		 Consolidated
2023
£'000
5,019
4,888
410
852
1,691
452
13,313		 College
2023
£'000
5,246
588
410
852
535
452
8,084		 Consolidated
2022
£'000
4,517
1,344
1,265
701
1,476
36
9,338		 College
2022
£'000
4,517
305
-
701
250
-
5,773

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		 2023
£'000
4,962
96
(2,846)
2,212
20
2,232		 2022
£'000
4,464
7
(2,880)
1,590
-
1,590

28

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

3b Summary of Total Return
Income From:
Quoted and Other Securities and Cash
Gains/(Losses) on Endowment Assets
Quoted and Other Securities
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)
4
EDUCATION EXPENDITURE
Teaching
Tutorial
Admissions (Incl Access Grants)
Research
Scholarships and Awards
Other Educational Facilities		 2023
£'000
2,116
2,116
9,526
9,526
11,642
(4,962)
6,680
College
2023
£'000
2,556
939
1,428
367
845
556
6,691		 2022
£'000
1,583
1,583
(9,249)
(9,249)
(7,665)
(4,464)
(12,129)
College
2022
£'000
2,887
1,249
1,263
585
672
529
7,186

5 ACCOMMODATION, CATERING, AND CONFERENCES EXPENDITURE

Accommodation
College Members
Conferences
International Programmes
Catering
College Members
Conferences
International Programmes		 Consolidated
2023
£'000
5,664
3,213
345
1,794
2,264
380
13,660		 College
2023
£'000
5,664
545
380
1,794
336
283
9,002		 Consolidated
2022
£'000
6,203
1,173
1,062
1,681
1,590
30
11,740		 College
2022
£'000
6,203
165
-
1,681
183
-
8,232

29

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

6
OTHER EXPENDITURE
Archives Centre
Bond & Loan Interest/Charges
Development/Alumni Relations
Other
COLLEGE AND CONSOLIDATED		 2023
£'000
670
803
304
212
1,990		 2022
£'000
493
803
108
91
1,495

7a ANALYSIS OF 2022/23 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
3,285
6,254
693
10,232
3,285
3,719
693
7,697		 Other
Operating
Expenses
£'000
2,924
5,173
1,296
9,393
2,924
3,440
1,296
7,661		 Depreciation
£'000
481
2,233
-
2,715
481
1,843
-
2,324		 Total
£'000
6,691
13,660
1,990
22,340
6,691
9,002
1,990
17,682

7b 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
5,584
501
10,469
4,384
3,501
501
8,386		 Other
Operating
Expenses
£'000
2,320
3,917
994
7,231
2,320
2,884
994
6,198		 Depreciation
£'000
482
2,239
-
2,721
482
1,847
-
2,329		 Total
£'000
7,186
11,740
1,495
20,421
7,186
8,232
1,495
16,914

30

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

7c Auditors Remuneration
Other Operating Costs include:
Audit Fees payable to College's External Auditors
Audit Fees payable to Subsidiaries' External Auditors		 2023
£'000
23
14
37		 2022
£'000
16
13
29
8
STAFF COSTS
CONSOLIDATED 2022/23
Staff Costs:
Salaries
External Staff Costs
Change in USS Pension Provision
National Insurance
Pension Costs
CONSOLIDATED 2021/22
Staff Costs:
Salaries
External Staff Costs
Change in USS Pension Provision
National Insurance
Pension Costs
COLLEGE 2022/23
Staff Costs:
Emoluments
External Staff Costs
Change in USS Pension Provision
Social Security Costs
Other Pension Costs		 Academic
2023
£'000
2,142
228
(269)
191
336
2,628
Academic
2022
£'000
2,078
251
1,444
175
300
4,249
Academic
2023
£'000
2,142
228
(269)
191
336
2,628		 Non -
Academic
2023
£'000
6,320
232
-
561
491
7,604
Non -
Academic
2022
£'000
5,226
102
-
464
428
6,221
Non -
Academic
2023
£'000
4,070
232
-
374
394
5,069		 Total
2023
£'000
8,462
460
(269)
752
827
10,232
Total
2022
£'000
7,305
352
1,444
639
729
10,469
Total
2023
£'000
6,212
460
(269)
564
730
7,697

31

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

----- Start of picture text -----
8 STAFF COSTS (CONT)
Non -
Academic Academic Total
2022 2022 2022
COLLEGE 2021/22 £'000 £'000 £'000
Staff Costs:
Emoluments 2,078 3,375 5,453
External Staff Costs 251 102 352
-
Change in USS Pension Provision 1,444 1,444
Social Security Costs 175 307 482
Other Pension Costs 300 354 654
4,249 4,138 8,386
Average Staff Numbers 2022/23 2023 2023 2023 2023 2023
Consolidated College College College College
Average Average Fellows Full- Average Staff Full-
Number of Number of Time Number of Time
Staff Fellows Equivalent Staff Equivalent
Academic 104 104 24 - -
Non-Academic 280 7 6 195 157
384 111 30 195 157
Average Staff Numbers 2021/22 2022 2022 2022 2022 2022
Consolidated College College College College
Average Average Fellows Full- Average Staff Full-
Number of Number of Time Number of Time
Staff Fellows Equivalent Staff Equivalent
Academic 108 108 25 - -
Non-Academic - College 231 7 6 169 145
339 115 31 169 145
----- End of picture text -----

32

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

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| |2023|2023|2022|2022| |£100,000 - £109,999|1|1|-|1| |£110,000 - £119,999|1|1|-|-| |£130,000 - £139,999|1|1|2|1| |£140,000 - £149,999|1|-|-|-|

----- 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| |2023|2022| |£'000|£'000| |Aggregate Remuneration|363|331|

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

The key management personnel are the Master, the Vice-Master, Bursar, the Senior Tutor and the Postgraduate Senior Tutor. 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 is shown above.

33

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

9 FIXED ASSETS

a Tangible Assets - Consolidated

COST/VALUATION
At 1 July 2022
Additions
Disposals
Cost at 30 June 2023
DEPRECIATION
At 1 July 2022
Provided for the year
Eliminated on Disposal
Depreciation at 30 June 2023
NET BOOK VALUE
At 30 June 2023
At 30 June 2022		 College Site
Flats &
Buildings
£'000
91,136
2,116
-
93,252
22,964
1,599
-
24,564
68,689
68,172		 College
Land
£'000
2,823
-
-
2,823
-
-
-
-
2,823
2,823		 College
Hostels &
Houses
£'000
9,368
251
-
9,619
2,395
160
-
2,555
7,064
6,974		 Fixtures
Fittings
Equipment
£'000
7,559
966
(570)
7,955
5,183
764
(570)
5,377
2,578
2,375		 Møller
Centre
£'000
21,623
-
-
21,623
6,559
185
-
6,745
14,878
15,064		 Total
£'000
132,509
3,334
(570)
135,273
37,102
2,709
(570)
39,241
96,032
95,408

The insured value of freehold land and buildings as at 30 June 2023 was £138m (2022: £126m ).

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.

34

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

9a Tangible Assets - College
COST/VALUATION
At 1 July 2022
Additions
Disposals
Cost at 30 June 2023
DEPRECIATION
At 1 July 2022
Provided for the year
Eliminated on Disposal
Depreciation at 30 June 2023
NET BOOK VALUE
At 30 June 2023
At 30 June 2022		 College Site
Flats &
Buildings
£'000
91,477
2,115
-
93,592
23,031
1,594
-
24,625
68,967
68,446		 College
Land
£'000
2,823
-
-
2,823
-
-
-
-
2,823
2,823		 College
Hostels &
Houses
£'000
9,368
251
-
9,619
2,395
160
-
2,555
7,064
6,974		 Fixtures
Fittings
Equipment
£'000
3,909
936
(457)
4,388
2,235
385
(457)
2,163
2,225
1,674		 Møller
Centre
£'000
11,105
-
-
11,105
3,701
185
-
3,886
7,219
7,404		 Total
£'000
118,682
3,302
(457)
121,527
31,362
2,324
(457)
33,229
88,298
87,320

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
Balance at 1 July 2022
Additions
Disposals
Gain/(Loss) on Investment Valuation
(Decrease)/Increase in Cash Balances at Fund Managers
Balance as at 30 June 2023
Historic Cost		 Consolidated
2023
£'000
112,654
6,005
(7,567)
9,526
(484)
120,133
89,282		 College
2023
£'000
119,654
6,005
(7,567)
9,526
(484)
127,134
96,283		 Consolidated
2022
£'000
123,220
14,564
(17,364)
(9,249)
1,482
112,654
88,349		 College
2022
£'000
130,220
14,564
(17,364)
(9,249)
1,482
119,654
95,349

35

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

10 INVESTMENT ASSETS (CONT)
Represented by:
Quoted Securities - Equities
Investment in Subsidiary Undertakings
Cash Held for Reinvestment
11 STOCKS
Fellows Wine Cellar
Other Stocks
12 TRADE AND OTHER RECEIVABLES
Trade Debtors
Members of the College
Amounts due from Subsidiary Undertakings
Prepayments and Accrued Income
Other		 Consolidated
2023
£'000
119,744
-
389
120,133
Consolidated
2023
£'000
619
70
689
Consolidated
2023
£'000
1,016
343
-
264
2,595
4,217		 College
2023
£'000
119,744
7,000
389
127,134
College
2023
£'000
619
41
659
College
2023
£'000
271
343
1,570
171
2,595
4,949		 Consolidated
2022
£'000
111,780
-
874
112,654
Consolidated
2022
£'000
590
65
655
Consolidated
2022
£'000
1,087
306
-
121
699
2,213		 College
2022
£'000
111,780
7,000
874
119,654
College
2022
£'000
591
41
632
College
2022
£'000
243
306
807
59
699
2,114

Contingent Asset

The College has been notified of several bequests which are likely to be paid to College in the next few years. Whilst these have not met the criteria for income recognition, they are noted here as the sum is likely to be in excess of £3m and is therefore material.

13 CASH AND CASH EQUIVALENTS
Bank Deposits
Current Accounts and in Hand		 Consolidated
2023
£'000
4,126
3,449
7,575		 College
2023
£'000
4,126
714
4,839		 Consolidated
2022
£'000
3,116
2,903
6,019		 College
2022
£'000
3,117
1,448
4,564

36

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

14 CREDITORS: AMOUNTS FALLING DUE
WITHIN ONE YEAR
Trade Creditors
Members of the College
University Fees
Contribution to Colleges Fund
Social Security and other Taxation payable
Other
15 CREDITORS: AMOUNTS FALLING DUE
AFTER ONE YEAR
Other Creditors
College Bonds		 Consolidated
2023
£'000
1,381
620
539
32
531
2,828
5,931
Consolidated
2023
£'000
141
24,000
24,141		 College
2023
£'000
769
620
539
32
425
1,299
3,685
College
2023
£'000
141
24,000
24,141		 Consolidated
2022
£'000
974
639
131
35
515
2,650
4,944
Consolidated
2022
£'000
137
24,000
24,137		 College
2022
£'000
711
639
131
35
361
1,192
3,070
College
2022
£'000
137
24,000
24,137

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 2022/23
Balance at 1 July 2022
Movement in the year:
Recognised in Income and Expenditure
Contributions paid by the College
Finance cost
Balance as at 30 June 2023
Actuarial loss recognised in Statement of Comprehensive
Income and Expenditure		 USS
2023
£'000
2,262
(226)
(118)
75
-
1,993		 CCFPS
2023
£'000
-
-
(21)
17
409
405		 Total
2023
£'000
2,262
(226)
(139)
92
409
2,398

37

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

16 PENSION PROVISIONS (CONT)
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) recognised in Statement of Comprehensive
Income and Expenditure		 USS
2022
£'000
818
1,474
(37)
7
-
2,262		 CCFPS
2022
£'000
1
-
(21)
21
(1)
-		 Total
2022
£'000
818
1,474
(58)
28
(1)
2,262

17 ENDOWMENT RESERVE

Restricted net assets relating to endowments are as follows:

CONSOLIDATED/COLLEGE 2022/23
Balance at 1 July 2022
New Endowments Received
Capital withdrawn
Increase in Market Value of
Investments
Plus: Capital withdrawn to Income
Balance as at 30 June 2023
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
18,078
5
-
5
842
-
842
18,925
Restricted
Permanent
£'000
10,453
450
84
529
2,737
301
6
50
4,202
113
-
18,925
18,925
18,925		 Unrestricted
Permanent
£'000
17,654
-
(2,846)
(2,846)
834
2,846
3,680
18,488
Unrestricted
Permanent
£'000
-
-
-
-
-
-
-
-
-
-
18,488
18,488
18,488
18,488		 Total
2023
£'000
35,732
5
(2,846)
(2,841)
1,675
2,846
4,521
37,412
Total
2023
£'000
10,453
450
84
529
2,737
301
6
50
4,202
113
18,488
37,412
37,412
37,412

38

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

17 ENDOWMENT RESERVE (CONT)

Restricted net assets relating to endowments are as follows:

CONSOLIDATED/COLLEGE 2021/22
Balance as at 1 July 2021
New Endowments Received
Capital withdrawn
Increase in Market Value of
Investments
Plus: Capital withdrawn to Income
Balance as at 30 June 2022		 Restricted
Permanent
£'000
19,971
6
-
6
(1,899)
-
(1,899)
18,078		 Unrestricted
Permanent
£'000
19,536
-
(2,880)
(2,880)
(1,882)
2,880
998
17,654		 Total
2022
£'000
39,507
6
(2,880)
(2,874)
(3,781)
2,880
(900)
35,732

17 Analysis by Asset (CONT)

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
9,983
425
80
505
2,625
288
5
48
4,012
108
-
18,078
18,078
18,078		 Unrestricted
Permanent
£'000
-
-
-
-
-
-
-
-
-
-
17,654
17,654
17,654
17,654		 Total
2022
£'000
9,983
425
80
505
2,625
288
5
48
4,012
108
17,654
35,732
35,732
35,732

39

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

18 RESTRICTED RESERVES

Reserves with restrictions are as follows:
CONSOLIDATED/COLLEGE 2022/23
Balance at 1 July 2022
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 2023
Balance as at 30 June 2023
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
1,363
-
1,363
-
461
(14)
-
-
1,810
1,810
-
1,810
£'000
-
1,810
-
-
-
-
-
-
-
-
-
-
-
1,810
Capital
Grants
Unspent
Capital
Grants
Unspent		 £'000
-
9,956
9,956
-
511
802
(905)
-
436
10,801
-
10,801
10,801
£'000
1,837
32
2,884
182
42
1,473
1,118
80
637
81
57
2,221
157
10,801
Permanent
Unspent &
Other
Restricted
Income
Permanent
Unspent &
Other
Restricted
Income		 £'000
9,219
-
9,219
339
2,242
612
(1,108)
-
206
11,510
11,510
-
11,510
£'000
516
3,543
225
204
1,541
128
9
3,740
131
31
1,412
30
11,510
Restricted
Expendable
Endowment
Restricted
Expendable
Endowment		 Total
2023
£'000
10,582
9,956
20,539
339
3,214
1,413
(2,027)
-
642
24,121
13,319
10,801
24,121
Total
2023
£'000
2,354
1,842
6,427
407
246
3,015
1,246
89
4,377
212
88
3,632
187
24,121

40

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

18 RESTRICTED RESERVES (CONT)

Reserves with restrictions are as follows:
CONSOLIDATED/COLLEGE 2021/22
Balance as 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
(895)
-
(465)
9,219
9,219
-
9,219
£'000
996
8
2,701
215
224
1,430
122
9
1,938
123
30
1,378
45
9,219
Restricted
Expendable
Endowment
Restricted
Expendable
Endowment		 Total
2022
£'000
8,572
9,878
18,450
296
3,560
1,249
(1,603)
-
(1,414)
20,539
10,582
9,956
20,539
Total
2022
£'000
2,251
1,404
5,749
398
261
2,866
1,182
79
2,634
198
84
3,265
168
20,539

41

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

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 2022
Unapplied Total Return for the Year (see note 3b)
Unapplied Total Return at 30 June 2023
20 RECONCILIATION OF CONSOLIDATED SURPLUS FOR THE YEAR
TO NET CASH INFLOW FROM OPERATING ACTIVITIES
Surplus/(Deficit) for the Year
Adjustment for Non-cash Items
Depreciation
Investment Income
(Gain)/Loss on Endowments, Donations and Investment Property
(Decrease) in Stocks
(Increase) in Debtors
Increase/(Decrease) in Creditors
Pension Costs
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		 2023
£'000
61,830
6,680
68,510
2023
£'000
10,979
2,709
(2,232)
(9,526)
(34)
(2,004)
992
(273)
803
1,414
2023
£'000
(3,334)
(6,005)
8,051
2,232
944
2023
£'000
(803)
(803)		 2022
£'000
73,959
(12,129)
61,830
2022
£'000
(10,448)
2,716
(1,590)
9,249
(14)
(330)
(31)
1,444
803
1,799
2022
£'000
(3,232)
(14,564)
15,881
1,590
(324)
2022
£'000
(803)
(803)

42

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

23 ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at Bank and in Hand
Net Funds		 £'000
6,019
6,019
At 1 July 2022		 £'000
1,555
1,555
Cash Flows		 £'000
7,575
7,575
At 30 June
2023

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 2022
£'000
6,019
24,000
(17,981)		 Cash Flows
£'000
1,555
-
1,555
2023
£'000
731		 At 30 June
2023
£'000
7,575
24,000
(16,425)
2022
£'000
431

26 LEASE OBLIGATIONS

At 30 June 2023 the College had commitments under non-cancellable operating leases as follows:

Other
Expiring within one year
Expiring between two and five years		 2023
£'000
10
3		 2022
£'000
10
13

43

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

27 FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS
2023 2022
Financial Assets £'000 £'000
Financial assets at fair value though Statement of Comprehensive Income
Listed Equity Investments (note 10) 119,744 111,780
Financial assets that are debt instruments measured at amortised cost
Cash and Cash Equivalents (notes 10,13) 7,964 6,893
Trade Debtors 1,016 1,087
Other Debtors 3,202 1,127
Financial Liabilities
Financial liabilities measured at amortised cost
College Bond 24,000 24,000
Trade Creditors 1,381 974
Other Creditors 4,692 4,107

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 trusteeadministered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual Colleges and a schemewide 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 multiemployer 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 £410k (2022: £395k).

The latest available complete actuarial valuation of the Retirement Income Builder is at 31 March 2020 (the valuation date), which was carried out using the projected unit method. Since the institution cannot identify its share of USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.

44

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

28 PENSION SCHEMES (CONT)

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

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

CPI assumption Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves less: 1.1%pa to 2030, reducing linearly by 0.1%pa to a long-term difference of 0.1%pa from 2040. Pension increases (subject to a CPI assumptions plus 0.05% 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 2020 actuarial valuation. The mortality assumptions used in these figures are as follows:

2020 Valuation Mortality base table 101% of S2PMA "light" for males and 95% of S3PFA for females

Future improvements to mortality CMI 2019 with a smoothing parameter of 7.5, an initial addition of 0.5%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:
2023 2022
Valuation Valuation
Males currently aged 65 years 24.00 23.90
Females currently aged 65 years 25.60 25.50
Males currently aged 45 years 26.00 25.90
Females currently aged 45 years 27.40 27.30

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 2023 deficit recovery liability reflects this plan. The liability figures have been produced using the following assumptions:

2023 2022
Assumptions re Salary Growth Rate 3.06% 3.18%
Discount rate 5.52% 3.31%

45

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

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 2023, 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 -----
|||| |---|---|---| |30/06/23|30/06/22| |% pa|% pa| |Discount rate|5.20%|3.80%| |Retail Price Index (RPI) assumption|3.4%|3.45%| |Consumer Price Index (CPI)|2.8%|2.75%| |Pension Increases (RPI max 5% pa)|3.3%|3.3%|

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

*For 2 years only, it is assumed the RPI will be 9% and CPI will be 7% (2022: 11% and 9% respectively). The caps under the rules are applied to assumed pension increased.

The underlying mortality assumption is based upon the standard table known as S3PA on a year of birth usage with CMI_2022 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 (2022: S3PA with CMI_2021 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

The amounts recognised in the balance sheet as at 30 June 2023 are as follows:

----- Start of picture text -----
|||| |---|---|---| |The amounts recognised in the balance sheet as at 30 June 2023 are as follows:|2023|2022| |£'000|£'000| |Present value of scheme liabilities|(6,602)|(7,465)| |Market value of scheme assets|6,197|7,577| |-| |Adjustment for non-recoverable surplus|(112)| |Deficit in the Scheme|(405)|-| |The following amounts have been recognised within the income and expenditure account:|2023|2022| |£'000|£'000| |Administrative expenses|21|21| |-| |Interest on net defined benefit (asset)/liability|(4)| |17|21|

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

46

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

28 PENSION SCHEMES (CONT)

Changes in the present value of the scheme liabilities are as follows:
Present value of scheme liabilities at beginning of period
Interest on plan liabilities
Actuarial (losses)/gains
Benefits paid
Present value of scheme liabilities at end of period
Changes in the fair value scheme assets are as follows:
Market value of scheme assets at beginning of period
Return on assets, less interest included in income and expenditure
Administrative expenses
Contributions by College
Interest on plan assets
Benefits and expenses paid
Market value of plan assets at end of period
Actual return on plan assets
Equities
Bonds and Cash
Property
The major categories of scheme assets as a percentage of total scheme assets are as follows:		 2023
£'000
7,465
276
(745)
(394)
6,602
2023
£'000
7,577
(1,263)
(24)
21
280
(394)
6,197
(982)
2023
49%
38%
13%
100%		 2022
£'000
9,214
163
(1,548)
(364)
7,465
2022
£'000
9,213
(1,431)
(25)
21
163
(364)
7,577
(1,269)
2022
52%
34%
14%
100%

Analysis of the remeasurement of the net defined benefit liability recognised in Other Comprehensive Income (OCI) for the year ended 30 June 2023 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		 2023
£'000
(1,263)
(3)
(440)
1,185
112
(409)		 2022
£'000
(1,431)
(4)
(652)
2,200
(112)
1

47

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

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		 2023
£'000
-
21
(17)
(409)
(405)		 2022
£'000
(1)
21
(20)
-
-

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 Council may have an interest are conducted at arm's length and in accordance with the College's normal procedures.

The College maintains a register of interests for all College Council members and where any member of 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		 2023
Number
8
6
1
1
1
1
-
1
1
-
1
21		 2022
Number
7
5
2
-
1
1
1
1
-
-
1
19

The total Trustee salaries were £540k (2022: £485k).

48

CHURCHILL COLLEGE IN THE UNIVERSITY OF CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS (CONT)

FOR THE YEAR ENDED 30 JUNE 2023

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 £119k for the year (2022: £122k).

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 (currently dormant)

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

2023 2022
Turnover £'000 £'000
The Møller Institute Ltd 5,165 3,527
Churchill Conferences Ltd 1,300 330
Churchill Residences II Ltd Nil Nil
Net Assets
The Møller Institute Ltd 7,768 8,040
Churchill Conferences Ltd 14 19
Churchill Residences II Ltd Nil Nil

There are no other related party transactions to note (2022: none)

49