## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Governing Body Year ended 30 June 2022** 

Visitor:  Chancellor of the High Court, Sir Julian Flaux 

## **MEMBERS OF THE GOVERNING BODY** 

President:  Professor Alan Short* 

Fellows under Titles A, B, C and D (in order of Election) 

|Professor Charles Smith<br>|1993|Dr Ems Lord*|2018|
|---|---|---|---|
|Professor Maria Spillantini<br>|1994|Dr Li Su|2018|
|Dr Robert Carlyon<br>|1996|Professor George van Kooten|2018|
|Professor Andrew Blake|2000|Professor Hugh Markus<br>|2018|
|Professor Alan Short*<br>|2002|Dr Bipasha Chakraborty<br>|2019|
|Dr Anthony Street<br>|2002|Dr Christopher Jenkins<br>|2019|
|Dr Ian Farnan*|2002|Dr Adrian Mihai|2019|
|Dr Lori Passmore<br>|2005|Dr Juan Rodriguez-Molina<br>|2019|
|Dr Elizabeth Rowe<br>|2009|Dr Boyang Shen|2019|
|Professor Sohini Kar-Narayan*|2009|Dr Gianluca Amadei|2020|
|Dr Wai Yi Feng|2010|Dr Hannah Gaffney|2020|
|Professor Hasok Chang<br>|2011|Dr Qiaojinj Lin|2020|
|Professor Richard McMahon|2013|Dr Brynja Thorgeirsdottir|2020|
|Dr Karen Ersche|2013|Dr Tianren Yang|2020|
|Ms Helen Pennant*<br>|2013|Dr Holly Hedgeland*|2021|
|Dr Annamaria Motrescu-Mayes|2013|Professor Stuart Dalziel*|2021|
|Dr Lucia Tantardini<br>|2013|Dr Madeline Lancaster|2021|
|Dr Khaled Soufani|2016|Dr Jingyi Zhao|2021|
|Sir Mene Pangalos<br>|2016|Dr Anthony Harris|2021|
|Professor Emilio Artacho|2017|Dr Gustav Zamore*|2021|
|Dr Tobias Baldauf|2017|Dr Jun Sung Park<br>|2021|
|Dr Nicole Cuunjieng|2017|Dr Kelly Fagan Robinson|2021|
|Dr Pietro Lio*<br>|2017|Dr Mike Nelson|2021|
|Mr Ian Strachan*<br>|2017|Dr Rachel Sippy|2021|
|Professor Stephen Toope|2017|Dr Ryan Nehring|2021|
|Professor Manohar Bance|2018|Dr William McMahon|2021|



President of GSB* Vice-President of GSB* 

*Members who are also members of Council 

**Senior Officers of Clare Hall as at 30 June 2022** 

President Professor Alan Short Vice- President Helen Pennant Senior Tutor Dr Holly Hedgeland Bursar Mr Ian Strachan 

1 



**Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Professional Advisers** 

## **Auditors** 

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

## **Bankers** 

Barclays Bank plc St Andrews Street Cambridge CB2 3AA 

## **Investment Fund Managers** 

The Charities Property Fund Savills Investment Management LLP 33 Margaret Street London W1G 0JD Cambridge University Endowment Fund University of Cambridge Investment Office The Old Schools Trinity Lane Cambridge CB2 1TN 

## **Solicitors** 

Ashton KCJ Chequers House 77 – 81 Newmarket Road Cambridge CB5 8EU 

Page 2 



**Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Report of the Governing Body, Year ended 30 June 2022** 

The Members of the Governing Body present the audited financial statements for the year ended 30 June 2022. 

Founded in 1966 as a centre for advanced study, Clare Hall is a graduate college of the University of Cambridge.  It was incorporated by Royal Charter on 22 October 1984 and is an autonomous, selfgoverning community of scholars.  In accordance with its Statutes, the control of the College as a place of education, learning and research is vested in the Governing Body, which is responsible for administering the College’s estates and property. The Council members are nominated by the Governing Body and manage all operational matters.  The Finance Committee consists of the President, the Vice President, the Bursar and four other members of the Governing Body, elected by the Governing Body. The Finance Committee exercises the authority delegated to it by the Governing Body to manage, in accordance with general policies laid down from time to time by the Governing Body, the land, property and investments of the College and its financial affairs in general and to direct the Bursar in the performance of their financial duties. 

## **Scope of the financial statements** 

The financial statements cover the activities of the College during the year ended 30 June 2022 and the net assets as at that date.  The College has no subsidiaries. 

As a registered charity, the College is regulated by the Charity Commission, CC No. 1137491. 

These accounts are presented in the format of the Recommended Cambridge College Accounts (RCCA), which comply with the Further and Higher Education SORP (Statement of Recommended Practice: Accounting for Further and Higher Education, adopted for accounting periods beginning after 1 January 2015). 

## **Objects** 

The objects of the College are set out in its Royal Charter, effective from 1 January 1984. The College aims: 

- To remain an independent graduate college within the University of Cambridge, dedicated to advanced study; 

- To bring together research scholars of different nationalities and academic disciplines and to promote academic research of the highest quality by Fellows and postgraduate students; 

- To integrate fully into the fabric of academic life senior visitors who come to Cambridge on study leave together with their spouses and partners; 

- To encourage interdisciplinary links between scholars from all over the world; 

- To achieve excellence in education at postgraduate level; and 

- To maintain and enhance the endowments and benefactions, buildings and grounds of the College for the benefit of future generations. 

Page 3 



**Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Report of the Governing Body, Year ended 30 June 2022** 

## **Public Benefit** 

In carrying out the governance of the College, the Governing Body has paid due regard to the published guidance from the Charity Commission on public benefit and requirements under the Charities Act 2011. 

The College provides, in conjunction with the University of Cambridge, an education which is recognised internationally as being of the highest standard for some 200 fee paying graduate students. 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 the financial year under consideration, the College members graduating achieved 20 PhDs and 52 Masters-level degrees (2020-21: 19 and 30 respectively), which included a number of students who had completed their courses, but had deferred graduating because of Covid restrictions. 

In particular, the College provides: 

- teaching facilities and pastoral, administrative and academic support for all students through its tutorial and mentoring systems; and 

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

The College advances research through: 

- providing 26 Research Fellowships to outstanding young academics in the early stages of their careers, which enables them to develop and focus on their research in this formative period before they undertake the full teaching and administrative duties of an academic post; 

- supporting the research work of its other Fellows by promoting interaction across disciplines and providing facilities for seminars; and 

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

The resident members of the College, both students and Fellows, are the primary beneficiaries and are directly engaged in education, learning or research. More widely, beneficiaries also include: students and academic staff from other colleges in Cambridge and the University of Cambridge, visiting academics from other higher education institutions and visiting alumni of the College who have an opportunity to attend educational events at the College and to use its academic facilities. The College maintains a Library, which provides a valuable resource for students and Fellows of the College. The general public is also able to attend various educational activities in the College such as lectures, seminars, concerts and art exhibitions. 

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

- there are no geographical restrictions in the College’s objects and students and academic staff of the College are drawn from across the UK and internationally; 

- there are no age restrictions in the College’s objects but students of the College are predominantly aged 21 years and above; and 

- there are no religious restrictions in the College’s objects and members of the College have a wide variety of faith traditions or none. 

Page 4 



## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Report of the Governing Body, Year ended 30 June 2022** 

The focus of the College is strongly academic and students are required to satisfy high academic entry requirements.To support the costs of graduate students, the College provides various scholarships and bursaries, to help fund fees and living costs. The total awarded in 2021-22 was £105,161 (2020-21 £153,262). The College also supports students through a grant scheme to assist with attendance at conferences and travel grants. The total awarded in 2021-22 was £10,400 (2020-21 £5,900).  In addition to other programmes, the College operates schemes for students in financial hardship, for relief from mental health and a single parent fund. The total awarded in 2021-22 was £34,462 (2020-21 £32,403).  To raise educational aspiration and attract outstanding applicants who might not otherwise have considered applying to Clare Hall, the College provides guidance and information for prospective applicants on the College website and through staff in its Tutorial Office. 

In order to fulfil its charitable purposes of advancing education, learning and research, the College employs a number of Fellows as Tutors and senior administrative officers. All serve as members of the College Governing Body. The employment of the President and Fellows is undertaken with the intention of furthering the College’s aims and their employment directly contributes to the fulfilment of those aims. The private benefit accruing to the President and Fellows through salaries, stipends and employmentrelated benefits is objectively reasonable, measured against academic stipends generally; moreover annual pay increases normally follow national settlements applying to the university sector. Without the employment of Fellows, the College could not fulfil its charitable aims as a college in the University of Cambridge. 

## **Funding** 

The College funds its activities through academic fees, by charging for student and Visiting Fellows’ accommodation and catering services, from investment income, and through individual and corporate donations and bequests. The College does not use an external fundraiser. 

## **Achievements and Performance** 

The College’s goal is to promote an international community of Cambridge academics, post-graduate students and visiting scholars to make Clare Hall an outstanding College for Advanced Study at the University of Cambridge. 

The six key performance objectives set by the Governing Body are as follows: 

- _(i) To raise funds for the endowment, for future major projects and for student support;_ 

- _(ii) To attract Official and Professorial Fellows of the highest quality appointed to university posts;_ 

- _(iii) To attract Visiting Fellows of international standing;_ 

- _(iv) To ensure that students enjoy the Clare Hall experience;_ 

- _(v) To ensure that the College operates efficiently and effectively; and, (vi) To progress with the refurbishment of communal spaces._ 

During the previous year, ended 30 June 2021, the impact of the Covid-19 pandemic severely restricted the ability of the College to make progress on the above objectives. However the College emerged from the lockdowns having been comparatively financially resilient, with less exposure to loss of income from accommodation, or from conferences and events, and with two significant elements of our income – student fees and endowment / investment income – relatively fixed. 

Page 5 



**Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Report of the Governing Body, Year ended 30 June 2022** 

- Our focus for the year under review was to increase our income from three areas: 

- to maximise occupancy of our accommodation; 

- to increase donations and benefactions, with new personnel in place in Alumni and Communication; 

- to rebuild our small hospitality and events offering. 

## _Income_ 

It is very pleasing to report that occupancy of student accommodation was consistently above 90%, which, together with high levels of occupancy of our Visiting Fellow and guest rooms, resulted in an increase in rental income of 78% from the prior year. Catering operations continued to deliver exceptional quality meals, returning to full service in the Dining Hall. Overall, income from accommodation and catering recovered from £923,089 in 2020-21 to £1,780,199, an increase of over £857,000. Income from academic fees, and from investments, both showed increases on the prior year.  The College records with gratitude the receipt of a grant from the Colleges Fund during the year totalling £59,000 (2020-21 £65,000), which, by exception, has been allowed to be applied to Unrestricted Funds. Total income has therefore increased from £3,131,491 in  2020-21 to £4,579,127 in 2021-22, an increase of 46%. 

## _Expenditure_ 

Clare Hall aims to be a lean, efficient operation, with limited scope for significant reductions in fixed costs. Following a period of necessarily tight control of discretionary expenditure, the recovery in income enabled an increase in spending to support the operations, particularly maintenance works on the estate. This increase in the level of operations contributed to an increase in total operating expenditure from £3,737,217 in 2020-21 to £4,354,932 in 2021-22, an increase of 17%. 

The College has continued to provide the highest level of services and support to the students, Fellows, Visiting Fellows and College Members. This has included additional resources in the Tutorial team to support students’ wellbeing. The College is continuing to maintain the quality of its IT infrastructure and capacity, and to improve cleaning, safety and security across the College site. The health and safety of all College members continues to be a priority. 

## _Alumni relations, Communications and Marketing_ 

The Alumni team has continued to build strong relations with the alumni base, and a new focus on communications and marketing has improved the profile of Clare Hall. The College has recently launched an exciting new website which, together with a focussed social media presence, will further enhance the profile of the College and its engagement with Life Members and supporters. Together, this has contributed to the generation of £778,425 in total donations and grants (2020-21 £219,586). In accordance with good practice for charities, the College is registered with the Fundraising Regulator. 

## _Visiting Fellows_ 

Throughout the year the College has continued to attract applications from top quality Visiting Fellows. These senior academics with established reputations are one of the most important constituents of the College. As anticipated, a number of Visiting Fellows who had deferred their visits during the pandemic joined this year. They, together with the current year’s cohort, made a significant contribution, not just financially, but also through their engagement with College life. 

In conclusion, the year was one of successful recovery from the loss of income of the Covid years, with increased operating activity, occupancy, catering and events. 

Page 6 



## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Report of the Governing Body, Year ended 30 June 2022** 

## **Financial Review** 

## **Changes to the Financial Statements** 

The financial statements are presented in accordance with the Recommended Cambridge Colleges Accounts (RCCA). The statements comply with the FE/HE SORP and FRS102. 

## **Statement of Comprehensive Income and Expenditure** 

The single Statement of Comprehensive Income and Expenditure (‘the SOCIE’) features three columns: Unrestricted, Restricted and Endowment Income, so that the various income and expenditure flows can be shown separately. All donations and investment gains are included as income in the SOCIE. 

Unrestricted Income and Expenditure shows a net deficit of £183,509, compared to the 2020-21 net gain of £745,785. This significant reduction is the result, principally, of the unrestricted, unrealised gain on investments of in 2020-21 of £1,219,869. In 2021-22 there was a small unrealised investment loss of £159,124, which partially offet an improved operating performance. The unrestricted deficit in 2021-22 before the investment loss was £366,776, compared to a deficit of £724,540 in 2020-21. 

Restricted Income includes all restricted transactions, including donations, grants towards research, and funding for Visiting Fellowship programmes, which are deemed to be restricted. There have been specific donations and grants during the year amounting to £469,606 (2020-21 £64,914), an increase of £404,692. This includes amounts received in respect of the Basque, Spalding and Osk. Huttunen Visiting Fellowships, and a grant from the John Templeton Foundation towards a research project. 

Endowment Income of £1,128,231 (2020-21 £1,102,397) represents income from all invested endowment funds. Transferred to unrestricted funds is £626,362 (2020-21 £624,838) and transferred to restricted funds is £501,869 (2020-21 £477,559). 

Maintenance of buildings  A planned rolling maintenance programme seeks to ensure that the estate is maintained to the highest standard.  Expenditure on routine repairs, maintenance,  plumbing, electrical, and painting works carried out during the year amounted to £349,000 (2020-21 £209,000). 

## **Statement of Changes in Reserves** 

The Statement of Changes in Reserves shows total funds of £39.0m held by the College at 30 June 2022 comprising £11.2m in unrestricted funds, of which £2.4m (2021 £2.3m) is free reserves; £6.4m is attributable to restricted funds and £21.4 to the endowment.  No material amounts have been designated or otherwise committed at the year end. There have been no material additions to the unrestricted endowment since 2007. The strategic objectives of the College include raising further unrestricted funds to strengthen reserves and to cover eventualities, such as future capital acquisitions, exceptional items, emergencies and general contingencies. 

## **Balance Sheet** 

The operational fixed assets continue to be carried at historical cost or existing depreciated replacement cost values. Heritage assets are included using a reasonably ascertained (partial) valuation and the Balance Sheet includes the College’s estimated shares of the Universities Superannuation Scheme pension deficit and of the Cambridge Colleges’ Federated Pension Scheme pension deficit. No accrual has been made for holiday pay as this is deemed immaterial. Creditors include a payment of £60,244 (2020-21 £54,660) due to the University for Composition Fees and which has since been paid. 

Page 7 



## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Report of the Governing Body, Year ended 30 June 2022** 

The Balance Sheet liabilities include provisions for pension scheme liabilities as follows: 

- The deficit for the Cambridge Colleges’ Federated Pension Scheme [CCFPS] of £373,515 has decreased from £693,512 last year. 

- The deficit for the Universities Superannuation Scheme of £142,375 compares with a deficit of £102,582 last year. 

Total net assets have, therefore, reduced by £189,428 over the previous year, arising from the surplus on the College’s operating activities of £214,195, the actuarial gains on pension scheme liabilities of £349,949, offset by the loss on investments of £763,572. 

## **Cash flow and Treasury Management** 

At the end of the financial year the College held a cash balance of £1,451,071 (2021 £1,188,843).  This included an amount of £60,244 (2021 £54,660) due to the University in respect of the balance of fees for 2021-22. 

At 30 June 2022, the College had outstanding loans of £3.4m from Barclays Bank plc. £1.9m of this was borrowed in 2018 on a five-year medium term facility to fund the acquisition of No. 4 Herschel Road, £1m was taken out in 2001 to help fund the acquisition and refurbishment of other properties in Herschel Road and the balance of £0.5m was borrowed in January 2009.  The availability of short-term overdraft facilities has been negotiated with Barclays Bank for use if required. 

## **The Endowment and Investment Performance** 

Since June 2010 the major part of the College’s endowment has been invested in the Cambridge University Endowment Fund (CUEF). 

The CUEF is effectively a unit trust, in which the College has purchased units, and from which it receives a monthly dividend.  The total number of units held with CUEF at 30 June 2022 was 448,568 at £67.45 each, with a value of £30.3m (30 June 2021: 448,568 at £69.96 each, with a value of £31.4m). The distribution rate for the University's financial year to 31 July 2022 was 234.61 pence per unit. In order to meet its long term objective of increasing asset values, after paying distributions, by 1% more than inflation, the fund has an objective of achieving total returns of CPI plus 5% per annum. The fund has been reporting against this objective with effect from 1 July 2019. The proportion of the College's endowment funds invested in the CUEF represents 92.9% of the total endowment funds (2021 94.1%). The remaining 7.1% (2021 5.9%) continues to be held with the Charities Property Fund to add diversification to the asset allocation of investments. 

The unaudited asset allocation of the CUEF as at 30 June 2022 is shown below. 

|**Asset Class**|**Allocation 2022 %**|**Allocation 2021 %**|
|---|---|---|
|Public equities|42|43|
|Real assets (including property)|10|10|
|Absolute return (includinghedge funds)|17|11|
|Credit strategies|3|3|
|Fixed interest (includingcash)|4|13|
|Private equity|24|20|



Page 8 



## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Report of the Governing Body, Year ended 30 June 2022** 

The day-to-day management of non-property assets is delegated to the Cambridge University Endowment Fund (CUEF). Performance is monitored against a customised benchmark made up of 50% FTSE All-Share Index, 25% MSCI AC World Index and 25% FTA UK Government All Stocks Index. The WM unconstrained ex property Charity Universe is used as an additional benchmark in order to compare the investment managers’ performance with that of their peers. 

## **Reserves policy** 

The College’s reserves policy is to maintain sufficient free reserves to enable it to meet its short-term financial obligations. In the long-term, the College aims to continue to meet its charitable objectives in perpetuity and to seek to build up its reserves so as to support this aim. 

The Governing Body has set a target for free reserves of six month’s expenditure on charitable activities, currently approximately £2.2m. However, should the College experience cash-flow difficulties, the Governing Body would, initially, review and defer discretionary capital and maintenance expenditure currently included within the Estate Action Plan. Should significant benefactions not be received, then further cash shortfalls will have to be met by realisations from the endowment. 

At 30 June 2022 the College had total funds of £39.0 (2021 £39.2m), comprising £11.2m in unrestricted funds, of which £2.4m is free reserves, after deduction of tangible fixed assets and heritage assets. Unrestricted funds have reduced slightly in the current year as a result of, principally, the deficit on operating activities and the reduction in the valuation of investments. 

Free reserves’ at the year-end have increased to £2.380m (2020-21 £2.286m) i.e. unrestricted reserves, less the value of fixed and heritage assets (£11.185m less £8.805m). The small increase in free reserves in the year is as a result of the reduction in the value of depreciated tangible fixed assets in excess of the deficit on unrestricted reserves. 

The Trustees are satisfied that the College has sufficient reserves to meet its current and future financial obligations and its charitable objectives in the long term. 

## **Principal Risks and Uncertainties** 

The major risks to which the College is exposed, as identified by the Governing Body, have been reviewed and control systems have been established to mitigate those risks.  A Risk Register has been prepared for approval and continuing review by the Governing Body with the main strategic risks grouped under four headings: Governance, Academic, Financial Health and Operations. College committees monitor these risks on an ongoing basis and conduct an annual review of the main strategic risks for which each committee is responsible. 

During the year the College has carried out its annual Health and Safety Review and a Fire Risk Assessment.  Regular testing includes fixed wiring, portable appliances, fire alarms, emergency lighting and fire extinguishers. 

Health and Safety continues to be a key risk, with the College developing specific policies and procedures in response to the evolving Covid pandemic. 

Planned Preventative Maintenance continues to provide considerable mitigation of key property risks, and there is improved maintenance and management of the swimming pool and gym. 

Page 9 



Clare Hall, Cambridge
Annual Report and Financlal Statements for the year endlng 30 June 2022
Report of the Goveming Body) Year ended 30 June 2022
Enetgy Conservation
The G)llege ain￿ to reduce its enewconsumption each year through use of enetyefficient boilets and
lighting, impN)ved insulation and ￿UCed waste. The G)Uege is patt of the Cambridge Colleges
purchasing Consortiu￿ which TAryll help to mitigate cunEnt increases in enew costs. A8 well as setting
up clear processes for improving environmental Ferfornwice in areas such as enew use, ￿c)rIlng and
sustainable travel, the College abo cornsidered wider environmental issues such as biodivet5iry,
procuremenc, sustainable food and erLsuiing thai all bujlding wotks and ￿fU￿lShrnenrs a￿ undenaken
at the highest standards of insu]4tion and energy efficiency.
Future Plans
The budgei for 2022-23 is for a ￿ar of operniing deficiL with a coniinuing focus on maintaining the
increase in income from accommodation, donations, and conferences and events. It is pleasing to
that confirn￿d student numbets for the 2022-23 academic lear be shghdy higher than budgeieLI
which is encouragtng for fee Incon￿ and for rental inconr fff)m student accommodation. It is currendy
anticipated that all of our avaijabk swdeni roon￿ TAill again E* occupie
These additional revenues, and the resultanr cash infiows. will allow the P￿gramMe of phnned and
preventaiive mainienance to be accekrnted, to ensu￿ that the hEh quality of the buildings is rnaintained.
The Buildings and Estates Committee is giving iniiial considerdiion io th￿e major capiLII projects, repai
to the roof of the Erskine buildings, deg￿01carlQn, and development of the site of No. 4 He￿chel Road.
The College has estabtished an Access and Equaliry Worlong Group, which has ahrady rna& a number
ol recommendations, and Thill continue to address these imw)nani issues.
The Finance Commillee TAryll be coniinuing io considerthe CL)llege's inves[n￿nI in the Endowmeni Fund,
in the context of the Divestment Resolutions Fossed bythe Governing Body in 2019.
And an ongoing revrw of governance has i&ntified a number of improvements to be consi&red.
With a number of new membets of staff now established in key n)les, the arrival of a new Bursar in
Iktober 2022. and Thiih Ihe College in rejaiivelygood financial he31ih after the challenges of receni
aare Fhll is well positioned to meet the operational and strategic chalknges of the lears ahead.
Approved by the Governing Body on 19 CknoEtr 2022
and signed on their behalf by.
Professor C Alan Short
l)rrsid¢nl
Ian Stt
rjtsr
Page 10

**Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Report of the Governing Body, Year ended 30 June 2022** 

## **Corporate Governance** 

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

2. The College is a registered charity (registered number 1137491) and subject to regulation by the Charity Commission for England and Wales. Overall management and control are delegated to the members of the Council by the Governing Body, and they are responsible for ensuring compliance with charity law, other statutory duties and operational matters. It is the duty of the Council to keep under review the effectiveness of the operating processes, performance, systems and controls. 

3. The Governing Body is assisted by a number of Committees. Council Finance Committee Official Fellowship Committee Fellowship Committee 

4. It is the duty of the Finance Committee to keep under review the effectiveness of the College’s internal systems of financial and other controls; to advise the Governing Body on the appointment of external auditors; to consider reports submitted by the auditors; to monitor the implementation of recommendations made by the auditors; and to make an annual report to the Governing Body.  Membership of the Finance Committee includes the President, Vice President and Bursar ex officio, plus 4 other members of the Governing Body, to include the Senior Tutor, or a Tutor, with the Graduate Student Body President in attendance. 

5. The principal officers of the College during the year were: President Professor Alan Short Vice President Helen Pennant Senior Tutor Dr Holly Hedgeland Bursar Ian Strachan 

6. There are Registers of Interests of Members of the Governing Body, the Finance Committee and of the senior administrative officers.  Declarations of interest are made systematically at meetings. 

7. The Members of the Governing Body during the year ended 30 June 2022 are set out on page 1. Members of Council are identified with an asterisk. 

Page 11 



Clare Hall, Cambridge
Annual Report and Financial Statements for the year ending 30 June 2022
Repon of the Governing Body? Year ended 30 June 2022
Siatemeni of Intemal Control
The Goveming Body is resp)nsible for maintalning a sound s￿teM of internal control that
suppolls the achieverr£ni of Folicy, ain￿ and objeaives while Safegua￿1ng the public and other
funds 2nd assets for which the Goveming Body is Rsw)nsible, in accordance with the College's
Scatutes.
The $￿tern of intemal conirol is designed to manage rather than elimina￿ the risk of failure 10
achieve Fx)licies, aints and objectives; it theTrfore pff)vides ￿asonable but noi absolute assurance
of effectiveness.
The 5￿tern of internal control is &signed to i&ntify the piincipal risk8 to the achievement of
K)licies. aims and objeciives. io evaluate Ihe natu￿ and exteni of those iisks and to manage ihem
efficiently, effectively and economically. This process in p]ace for the ￿ar ended 30 June
2022 and up to the date of approval of these financial staiell*nts.
The Goveming Body is resw)nsibk for reviewing the overall effectiveness of the s￿tern of
intemal control. As part of ILS supervision of the College's aciiviiies, Council identrfies and
Conside￿ the major risk to which the Q)llege is exp)sd and establishes $y5ten￿ and p￿)CedureS
to manage those risks which have been categorised under four headings, as follows: Govemance,
Academic, Financial Health and OFrations.
The Goveming Bodls ￿VIeW of the effecuveness of the 5￿teM of internal control is infom*d
by the woA< of the vaftious Committees, by the Bu￿ar, and by the College office￿, who have
responsibi]ity for the develOpn￿llt and maintenance of the internal conirol frameworK and by
comments made by the enemal audito￿ in their Audit matte￿ and other ￿￿rts.
Approved bythe Goveming Body on 19 (ktober 2022
and signed on their beha]f by.
Professor C Alan Short
chan
ar
Page 12

## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Statement of Responsibilities of the Governing Body** 

The Finance Committee is responsible for ensuring that there is an effective system of internal control and that accounting records are properly kept.  It is the duty of the Bursar to present audited financial statements for each financial year, prepared in accordance with the Statutes of the University, to the Governing Body. 

In causing the financial statements to be prepared, the Governing Body has ensured that: 

- Suitable accounting policies are selected and applied consistently; 

- Judgements and estimates are made that are reasonable and prudent; and 

- Applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements. 

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

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

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

Page 13 



## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Independent Auditors’ Report to the Governing Body of Clare Hall** 

## **Opinion** 

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

In our opinion, the financial statements: 

- give a true and fair view of the state of the College’s affairs as at 30 June 2022 and of its incoming resources and application of resources for the year then ended; 

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

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

## **Basis for opinion** 

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

## **Conclusions relating to going concern** 

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

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

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

## **Other information** 

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

Page 14 



## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

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

We have nothing to report in this regard. 

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

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

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

## **Matters on which we are required to report by exception** 

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

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

- sufficient accounting records have not been kept; or 

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

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

## **Responsibilities of the Governing Body** 

As explained more fully in the responsibilities of the Governing Body statement set out on page 13, the Governing Body are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governing Body determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 

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

Page 15 



## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Auditors’ responsibilities for the audit of the financial statements** 

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

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

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

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

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

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

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

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

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

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

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

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

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

Page 16 



Clare Hall, Cambridge
Annual Report and Financial Statements for the year endlng 30 June 2022
To addres5 the risk of fyAud through mAnAgemeni bias and oi"¢rndc of conirols. we.
cc$rcd journal enirics to idcnufi. unusual rrAnsAciions'
1sse55cd iyhether judgements and asSUfflPllQns mad¢ in deicrmining the accounting cstimkres set
our in rhe accouniing polici. Ivere indicgtti-e of wiential biAs- and
ini-estigated the rationale behind signiticant or unusual trnAs2cuons.
In response to the risk of irreylariiics and non-comph2nce irriih 12ivs and regulauons. Ive designed
procedures ivluch included, but ivere not hmiicd 10:
agrccing financiil I statcrncni disclosure5 to underlling supporting docuffleniauon.
[￿"le1VIng rninutC5 OE [nectin￿ of rhose chA￿d ivith goi-ernance.
en4Liiring olmani1gemeni as to actual Jnd potenllal b"rigauon 2nd claims. aiid
r￿.1￿lIng correspondence ivith relei'ant regulAtors and thc colle￿,5 legal adi'isors.
"I'hcre are inhcreni limiiltions in our audLr procedures descnbcd al)oi'e. ltse more rctnoTr"cd Ihat laivs ?nd
reguliuons are from finAncial tniisaciions, the less likeli- it is tknt ive ivould bccome al￿re of non-
compliance. Èluditing siandard5 also h.mit ihc iudit proccdurcs required to idenufi. non-cotnpiiancL Iviih
11Iis And regLIIAiioIis 10 L"iiquin- of rhe ditcciors and other m%Aagctnenr And lh¢ inspection OE regularon.
nd lewhl correspondcnce, if ini-.
laterial mis¥tatcmcnts thar arise due to fraud can be harder to detect than Ih05c th%[ arisc from error as
thei- mai- ini-oli-e dchbcratc conccaltncnt or colli￿10￿.
-.l further dcscripoon ol our responsibditics for Ihe audit of the financial starcments is locited on the
l-inxncial Reporring Councd's ivebsite Ar. IV[￿[.frc.0tg-i1kIa￿dlIotSrtSpon￿IbII￿es. I'hss dcscripuon forms
Plt rr OF our audiiors. wrr.
Use of our report
I'liis rcport is made solcli. ro the College's Got"erning Bod!. As a bod!.. in accordxnce iiryrh College's
staiuies, Ihe Si2rutcs ot" the Urlli-ersin. of Cambndgc and rhe Cl)arities ..Ict 2011. Our ii.ork has been
undcrt£2ken so rhir might srAte to the Goi-erning Bod!- fhosc mariers ii'c are required to siire to them
in £luditors' Report ind for no orhcr puTrosc. To thc fullest eiieni pertniiicd b!-12£ U.. I￿¢ do noi accepr
or ab5umc responsibthry. to an!T>nc othrr Ihan tli¢ Colle8c and ihe College's Goi'erning Bodi. as % bod!.,
for our audit ii'ork, for rhis report. or for the opinions li'e hxi-e fonned.
PETERS ELWORTHY & MOORE
Chariered Accountants and sta￿t0￿- Auth"iors
Sabsbun. House
Station Road
CArnbridge
CBI ?L..
Pctcrs Elikorihi, & li loore is eligble io act as an audiior in tetms of section l ?1? ol Ihe Companies Act
?(KJ6.
Page 17-

## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Statement of Principal Accounting Policies** 

## **Basis of preparation** 

The financial statements have been prepared in accordance with the provisions of the Statutes of the College and of the University of Cambridge and applicable United Kingdom accounting standards.  In addition, the financial statements comply with the Statement of Recommended Practice: Accounting for Further and Higher Education (the SORP). 

The Statement of Comprehensive Income and Expenditure includes activity analysis in order to demonstrate that the College is satisfying its obligations to the University of Cambridge with regard to the use of public funds.  The analysis required by the SORP is set out in note 7. 

## **Basis of accounting** 

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

## **Consolidation** 

The College has no subsidiaries. The financial statements do not include the activities of student societies. 

## **Recognition of income** 

## **Academic fees** 

Academic fees are recognised in the period to which they relate and include all fees chargeable to students or their sponsors. 

## **Donations and benefactions** 

Charitable donations are recognised on receipt or where there is probability of future receipt and the value can be measured reliably.  The accounting treatment of a donation depends on the nature and extent of restrictions specified by the donor. 

Non exchange transactions without performance related conditions are donations and endowments. Donations and endowments with donor imposed restrictions are recognised within the Statement of Comprehensive Income and Expenditure when the College is entitled to the income. 

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. 

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 Statement of Comprehensive Income and Expenditure when the College is entitled to the income. 

Page 18 



## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Statement of Principal Accounting Policies** 

## **Investment income and change in value of investment assets** 

Investment income and changes in value of investment assets are recorded in income in the year in which they arise and as either restricted or unrestricted income according to the terms or other restrictions applied to the individual endowment fund. 

## **Capital grants and donations** 

Grants and donations of, or for the acquisition of, freehold land or heritage assets, which are nondepreciable assets, are credited to the income and expenditure account in the year of acquisition. 

## **Other income** 

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

## **Endowment and investment income** 

All investment income is credited to the income and expenditure account in the period in which it is earned.  Income from restricted endowments not expended in accordance with the restrictions of the endowment is transferred from the income and expenditure account to restricted endowments. 

## **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 contracts, at contract rates.  The resulting exchange differences are dealt with in the determination of the income and expenditure for the financial year. 

## **Tangible fixed assets** 

## **Land and buildings** 

Operational land and buildings are stated at historic cost, or at depreciated replacement cost. Freehold buildings are depreciated on a straight line basis over their expected useful economic life of 50 years. Freehold land is not depreciated. 

Where land and buildings are acquired with the aid of specific bequests or donations they are capitalised and depreciated as above. The related benefactions are credited to permanent capital. 

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

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

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

The cost of additions to operational property shown in the balance sheet includes the cost of land. 

## **Maintenance of premises** 

The College has a five year rolling maintenance plan which is reviewed on an annual basis. The cost of routine maintenance is charged to the Statement of Comprehensive Income and Expenditure account as it is incurred. 

## **Furniture, fittings and equipment** 

Furniture, fittings and equipment costing less than £5,000 per individual item or group of related items are written off in the year of acquisition. All other assets are capitalised and depreciated over their expected useful life as follows: 

Plant and machinery 4% per annum Furniture and fittings 15% per annum Motor vehicles and general equipment 20% per annum Computer equipment 25% per annum 

Page 19 



## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Statement of Principal Accounting Policies** 

## **Leased assets** 

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

## **Heritage assets** 

The College holds and conserves a number of collections, exhibits, artefacts and other assets of historical artistic or scientific importance.  Heritage assets acquired before 1 July 1999 have not been capitalised since reliable estimates of cost or value are not available on a cost-benefit basis.  Acquisitions since 1 July 1999 have been capitalised at cost or, in the case of donated assets, at expert valuation on receipt. Heritage assets are not depreciated since their long economic life and high residual value mean that any depreciation would not be material. 

## **Investments** 

Fixed asset investment and endowment assets are included in the balance sheet at market value. 

## **Stocks** 

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

## **Provisions** 

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

## **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. 

Page 20 



## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Statement of Principal Accounting Policies** 

## **Financial Instruments (continued)** 

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 and Expenditure. 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 and bank 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. 

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

## **Taxation** 

The College is a registered charity (number 1137491) 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. 

Page 21 



## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Statement of Principal Accounting Policies** 

## **Pension costs** 

The institution 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 institution is therefore exposed to actuarial risks associated with other institutions employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 "Employee benefits", the institution therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme. Since the institution has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the institution recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and therefore an expense is recognised. 

The College also participates in the Cambridge Colleges Federated Pension Scheme, a defined benefit scheme, the assets of which are held in a separate, trustee-administered fund. Pension costs are assessed on the latest actuarial valuation of the scheme. The contribution rates current as at 30 June 2022 were 28.98% employer and 8% employee. CCFPS closed to new members from 1 April 2017. 

A new defined contribution scheme (from Aviva) is now offered to staff not eligible for USS, with a minimum of 3% employee contributions, matched by two to one employer contributions, up to a maximum of 10% from the employer. 

## **Employment benefits** 

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

## **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. 

Page 22 



## **Clare Hall, Cambridge Annual Report and Financial Statements for the year ending 30 June 2022** 

## **Statement of Principal Accounting Policies** 

## **Critical Accounting Estimates and Judgements (continued)** 

Useful lives of property, plant and equipment – Property, plant and equipment represent a significant proportion of the College’s total assets. Therefore the estimated useful lives can have a significant impact on the depreciation charged and the College’s reported performance. Useful lives are determined at the time the asset is acquired and reviewed regularly for appropriateness. The lives are based on historical experiences with similar assets, professional advice and anticipation of future events. Details of the carrying values of property, plant and equipment are shown in note 8. 

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

Retirement benefit obligations – The cost of defined benefit pension plans are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long term nature of these plans, such estimates are subject to significant uncertainty. Further details are given in note 20. 

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

As the College is contractually bound to make deficit recovery payments to USS, this is recognised as a liability on the balance sheet. The provision is currently based on the USS deficit recovery plan agreed after the 2021 actuarial valuation, which defines the deficit payment required as a percentage of future salaries. 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 20. 

## **Reserves** 

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

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

Page 23 



## **STATEMENT OF COMPREHENSIVE INCOME & EXPENDITURE YEAR ENDED 30 JUNE 2022** 

|**_The notes on pages 28 to 39 form part of these accounts_**<br> <br> **Unrestricted Restricted Endowment**<br>**INCOME**<br>Note<br>Academic fees and charges<br>1<br>833,272<br>-<br>-<br>Accommodation and catering<br>2<br>1,780,199<br>-<br>-<br>Investment and other income<br>3<br>-<br>-<br>1,128,231<br>Endowment return transferred<br>626,362<br>501,869<br>(1,128,231)<br>**Total income before donations and**<br>**endowments**<br>3,239,833        501,869<br>-<br>Donations and grants<br>286,319<br>469,606<br>-<br>New endowments<br>22,500<br>Capital grant from Colleges Fund<br>59,000<br>-<br>-<br>**Total Income**<br>3,585,152<br>971,475<br>22,500<br>**EXPENDITURE**<br>Education<br>4<br>942,690         395,446<br>-<br>Accommodation, catering and conferences<br>5<br>2,743,202<br>-<br>-<br>Other expenditure<br>6<br>273,594<br>-<br>-<br> <br>**Total expenditure**<br>7<br>3,959,486<br>395,446<br>-<br> <br>**(Deficit)/surplus before other gains and**<br>**losses**<br>(374,334)<br>576,029<br>22,500<br>(Loss)/Gain on investments<br>10<br>(159,124)<br>(103,899)<br>(500,549)<br> <br>**(Deficit)/surplus for the year**<br>(533,458)<br>472,130<br>(478,049)<br> <br>**Other Comprehensive income**<br> <br>Actuarial gain in respect of pension<br>schemes<br>20<br>349,949<br>-<br>-<br> <br>**Total comprehensive income for the year**<br>(183,509)<br>472,130<br>(478,049)|**Unrestricted Restricted Endowment**<br>833,272<br>-<br>-<br>1,780,199<br>-<br>-<br>-<br>-<br>1,128,231<br>626,362<br>501,869<br>(1,128,231)|**2022**<br>**£**<br>**Total**<br>833,272<br>1,780,199<br>1,128,231<br>-<br>3,741,702<br>755,925<br>22,500<br>59,000<br>4,579,127<br>1,338,136<br>2,743,202<br>273,594<br>4,354,932<br>224,195<br>(763,572)<br> <br>(539,377)<br>349,949<br>(189,428)|**2021**<br>**Unrestricted Restricted Endowment**<br>**£**<br>**Total**<br>732,852<br>-<br>-<br>732,852<br>923,089<br>-<br>-<br>923,089<br>88,567<br>-<br>1,102,397 1,190,964<br>624,838<br>477,559<br>(1,102,397)<br>-|
|---|---|---|---|
||3,239,833        501,869<br>-<br>286,319<br>469,606<br>-<br>22,500<br>59,000<br>-<br>-||2,369,346        477,559<br>- 2,846,905<br>154,672<br>64,914<br>-<br>219,586<br>65,000<br>-<br>-<br>65,000|
||3,585,152<br>971,475<br>22,500||2,589,018<br>542,473<br>-3,131,491|
||942,690         395,446<br>-<br>2,743,202<br>-<br>-<br>273,594<br>-<br>-<br>||776,587<br>423,659<br>- 1,200,246<br>2,291,260<br>-<br>- 2,291,260<br>245,711<br>-<br>-<br>245,711|
||3,959,486<br>395,446<br>-||3,313,558<br>423,659<br>-3,737,217|
||<br>(374,334)<br>576,029<br>22,500<br>(159,124)<br>(103,899)<br>(500,549)<br>||(724,540)      118,814<br>-  (605,726)<br>1,219,869<br>709,107<br>3,416,149<br>5,345,125|
||(533,458)<br>472,130<br>(478,049)<br> <br> <br>349,949<br>-<br>-<br>||495,329<br>827,921<br>3,416,149<br>4,739,399<br>250,456<br>-<br>-<br>250,456|
||(183,509)<br>472,130<br>(478,049)||745,785<br>827,921<br>3,416,1494,989,855|
|||||





## _**Clare Hall**_ **Statement of Changes in Reserves Year ended 30 June 2022** 

## **Income and expenditure reserve** 

||**Unrestricted**|**Restricted**|**Endowment**|<br>**Total**|
|---|---|---|---|---|
||£|£|£|£|
|**Balance at 1 July 2021**|11,394,719|5,985,360|21,850,528|39,230,607|
|Surplus/(deficit) from income and expenditure<br>statement|(533,458)|472,130|(478,049)|(539,377)|
|Other Comprehensive income|349,949|-|-|349,949|
|Release of restricted capital funds spent in the|||||
|year|7,558|(7,558)|-|-|
|Reserve transfer||(21,576)|21,576|-|
|**Balance at 30 June 2022**|11,218,768|6,428,356|21,394,055|39,041,179|
||**Income and expenditure reserve**||||
||**Unrestricted**|**Restricted**|**Endowment**|**Total**|
||£|£|£|£|
|**Balance at 1 July 2020**|10,648,934|5,157,439|18,434,379|34,240,752|
|Surplus/(deficit) from income and expenditure<br>statement|495,329|827,921|3,416,149|4,739,399|
|Other comprehensive income|250,456|-|-|250,456|
|**Balance at 30 June 2021**|11,394,719|5,985,360|21,850,528|39,230,607|



## _**The notes on pages 28 to 39 form part of these accounts**_ 

25 



Clare Hall
Balance Sheet as at 30 June 2022
Note
2022
2021
NON£URRENT ASSETS
Fixed assets
Heritage assets
Investments
8.655.206
8.959.209
150,000
150,000
32 568 893 33 332 465
10
41 374 099 42 441674
CURRENT ASSETS
Stocks
Trade and other receivables
Cash and cash equwalents
28,631
603,178
1451,071
2,082.880
24.490
363,038
1 188.843
1,576.371
11
12
Creditors.. amounts falling due wrthin one year
13
2.399.910
591.344
Net current assets
317030
985.027
Total assets Igss Current liabiliti•¥
Creditors,. amounts falling due after more than one
year
41.057,069 43,428,701
14
3.400 000
Net assets excludlng pènslon d•flclts
Pension deficit ICCFPSI
Pansion deficit (USSI
39,5S7,069 40,026,701
1373,5151 {693,5121
142 375
102 582
15
16
Not assetj Sncluding p•nslon d•flcStJ
39.041 179 39.230 607
CAPITAL AND RESERVES
2022
2021
Rgstrlcted reservos
Income and expenditure reserve- endowment
Income and exFenditure reseNe- restricted
17
21,394,055 21,8SO,528
6 428 356
5 985 360
27,822,411 27,835,888
18
Unrestrlcted reservès
Income and expenditure reserve- unreslrKled
11,218,768 11394,719
TOTAL
39 041 179 39,230,607
The notes on pages 28 to 39 fomi part ol these accounts
Approved by Ihe Governing B(xly on 19 October 2022
and swn8d on Iheirbghamby..
Professor C A Short
President
I C Strac
26

## _**Clare Hall**_ 

## **Cash Flow Statement Year ended 30 June 2022** 

|Note<br>**CASH FLOWS FROM OPERATING ACTIVITIES**<br>Surplus/(deficit) for the year<br>**Adjustment for non-cash items**<br>Depreciation<br>(Gain)/loss on investments<br>(Increase)/decrease in stocks<br>(Increase)/decrease in debtors<br>Increase/(decrease) in creditors<br>CCFPS pension costs less contributions payable<br>USS pension provision<br>**Adjustment for investing or financing activities**<br>Investment income<br>Interest payable<br>Net cash outflow from operating activities<br>**CASH FLOWS FROM INVESTING ACTIVITIES**<br>Investment income<br>Endowment funds drawdown<br>Payments to acquire tangible fixed assets<br>Total cash flows from investing activities<br>**CASH FLOW FROM FINANCING ACTIVITIES**<br>Interest paid<br>Total cash flows financing activities<br>**Increase/(Decrease) in cash and cash equivalents in the year**<br>Cash and cash equivalents at the beginning of the year<br>Cash and cash equivalents at the end of the year<br>12|**2022**<br>**2021**<br>**£**<br>**£**<br>(539,377)<br>4,739,399<br>375,015<br>379,066<br>763,572<br>(5,345,125)<br>(4,141)<br>3,056<br>(240,140)<br>(145,577)<br>(91,434)<br>217,284<br>29,952<br>68,184<br>39,793<br>(17,517)<br>(1,128,231)<br>(1,102,397)<br>100,552<br>95,250|
|---|---|
||(694,439)<br>(1,108,377)|
||1,128,231<br>1,102,397<br>-<br>1,000,038<br>(71,012)<br>(106,965)|
||1,057,219<br>1,995,470|
||(100,552)        (95,250)|
||(100,552)<br>(95,250)|
||**262,228**<br>**791,842**<br>1,188,843<br>397,001|
||1,451,071<br>1,188,843|



_**The notes on pages 28 to 39 form part of these accounts**_ 

27 



## **Clare Hall** 

## **Notes to the Accounts for the year ended 30 June 2022:** 

|**1 ACADEMIC FEES AND CHARGES**<br>COLLEGE FEES<br>Graduate fee income<br>Total<br>**2 INCOME FROM ACCOMMODATION**<br>**AND CATERING**<br>Accommodation<br>Catering<br>Total<br>**3 INVESTMENT AND OTHER INCOME**<br>Income from:<br>Cambridge University Endowment Fund<br>Charity Property Fund<br>Other income<br>Total investment and other income<br>**4 EDUCATION EXPENDITURE**<br>Teaching<br>Tutorial<br>Admissions<br>Research<br>Scholarships and awards<br>Other educational facilities<br>Total<br>**5 ACCOMMODATION , CATERING AND**<br>**CONFERENCES EXPENDITURE**<br>Accommodation<br>Catering<br>Conferences<br>Total|**2022**<br>£<br>833,272<br>833,272<br>**2022**<br>£<br>1,560,067<br>220,132<br>1,780,199<br>**2022**<br>**£**<br>1,048,132<br>80,099<br>1,128,231<br>-<br>1,128,231<br>**2022**<br>**£**<br>47,095<br>251,855<br>92,776<br>590,352<br>12,490<br>343,568<br>1,338,136<br>**2022**<br>**£**<br>2,108,370<br>634,832<br>-<br>2,743,202|**2021**<br>£<br>732,852|
|---|---|---|
|||732,852|
|||**2021**<br>£<br>874,206<br>48,883|
|||923,089|
|||**2021**<br>**£**<br>1,023,985<br>78,412|
|||1,102,397<br>88,567|
|||1,190,964|
|||**2021**<br>**£**<br>44,745<br>203,241<br>67,220<br>362,800<br>309,165<br>213,075|
|||1,200,246|
|||**2021**<br>**£**<br>1,856,162<br>411,330<br>23,768|
|||2,291,260|



28 



**Clare Hall** 

## **Notes to the Accounts for the year ended 30 June 2022:** 

|**6 OTHER EXPENDITURE**<br>Fellows Commons<br>Student meals subsidy<br>Debt provision<br>Alumni Office salaries<br>Alumni account<br>Art Committee<br>Music<br>CCFPS - Net finance cost (note 20)<br>USS – Pension provision (note 16)<br>Miscellaneous expenses (net)<br>Total<br>**7a  ANALYSIS OF 2021/22**<br>**EXPENDITURE BY ACTIVITY**<br>Education (note 4)<br>Accommodation and catering (note 5)<br>Other (note 6)<br>**7b  ANALYSIS OF 2020/201**<br>**EXPENDITURE BY ACTIVITY**<br>Education (note 4)<br>Accommodation and catering (note<br>5)<br>Other (note 6)|**6 OTHER EXPENDITURE**<br>Fellows Commons<br>Student meals subsidy<br>Debt provision<br>Alumni Office salaries<br>Alumni account<br>Art Committee<br>Music<br>CCFPS - Net finance cost (note 20)<br>USS – Pension provision (note 16)<br>Miscellaneous expenses (net)<br>Total<br>**7a  ANALYSIS OF 2021/22**<br>**EXPENDITURE BY ACTIVITY**<br>Education (note 4)<br>Accommodation and catering (note 5)<br>Other (note 6)<br>**7b  ANALYSIS OF 2020/201**<br>**EXPENDITURE BY ACTIVITY**<br>Education (note 4)<br>Accommodation and catering (note<br>5)<br>Other (note 6)|**Staff**<br>**costs**<br>**(note 19)**<br>**Other**<br>**operating**<br>**expenses**<br>**£**<br>**£**<br>614,542<br>682,492<br>872,120<br>1,436,617<br>100,183<br>173,411|**2022**<br>**2021**<br>**£**<br>**£**<br>20,208<br>4,921<br>57,734<br>37,278<br>14,463<br>-<br>60,390<br>141,400<br>32,461<br>59,195<br>4,331<br>292<br>31,440<br>10,209<br>12,634<br>12,853<br>39,793 (17,517)<br>140   (2,920)<br>273,594<br>245,711<br>**Depreciation**<br>**Interest**<br>**Total**<br>**£**<br>**£**<br>**£**<br>41,102<br>-<br>1,388,136<br>333,913<br>100,552<br>2,743,202<br>-<br>-<br>273,594|
|---|---|---|---|
|||1,586,845<br>2,292,520|375,015<br>100,552<br>4,354,932|
|||**Staff costs**<br>**(note 19)**<br>**Other**<br>**operating**<br>**expenses**<br>**Depreciation**<br>**Interest**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>**£**<br>430,044<br>728,656<br>41,546<br>-<br>1,200,246<br>764,733<br>1,093,757<br>337,520<br>95,250<br>2,291,260<br>141,400<br>104,311<br>-<br>-<br>245,711||
|||1,336,177<br>1,926,724<br>379,066<br>95,250<br>3,737,217||



Expenditure includes £92,851 as the costs of fund raising (2021: £200,595). This expenditure includes the costs of alumni relations. 

## **7c  AUDITORS’ REMUNERATION** 

|**7  AUDITORS’ REMUNERATION**||
|---|---|
|**c**<br>Other operating expenses include:<br>Audit fees payable to the College’s external auditors<br>Other fees payable to the College’s external auditors|**2022**<br>**2021**<br>**£**<br>**£**<br>15,115<br>12,500<br>4,205<br>2,496|
||19,320<br>14,996|



The amounts above are stated inclusive of VAT. 

29 



## **Clare Hall** 

## **Notes to the Accounts for the year ended 30 June 2022:** 

|**8** **TANGIBLE FIXED ASSETS**<br>COST<br>As at 1 July 2021<br>Additions at cost<br>Disposals at cost<br>As at 30 June 2022<br>DEPRECIATION<br>As at 1 July 2021<br>Charge for the year<br>Eliminated on disposals<br>Provision for depreciation as at 30 June 2022<br>Net book value as at 30 June 2022<br>Net book value as at 30 June 2021|**Freehold**<br>**land and**<br>**buildings**<br> <br>**£**<br>12,664,486<br>-<br> -<br>12,664,486<br>4,821,947<br>195,291<br>-<br>5,017,238<br>7,647,248<br>7,842,559|**Infrastructure**<br>**and**<br>**equipment**<br>**£**<br>2,557,792<br>71,012<br>(16,145)<br>2,612,659<br>1,441,122<br>179,724<br>(16,145)<br>1,604,701<br>1,007,958<br> <br>1,116,670|**2022**<br>**£**<br>15,222,278<br>71,012<br>(16,145)|
|---|---|---|---|
||||15,277,145|
||||6,263,069<br>375,015<br>(16,145)|
||||6,621,939|
|||||
||||8,655,206|
||||8,959,209|



The College’s operational buildings are insured for a rebuilding cost of £39,649,420 (2021: £37,230,910). 

## **9 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 the majority of assets held in the College's collections were acquired prior to this date.  As reliable estimates of cost or valuation are not available for these on a cost-benefit basis, they have not been capitalised.  As a result the total included in the balance sheet is partial and the £150,000 relates to assets acquired in 2007. 

There have been no additions to heritage assets during the last five years. 

|**10 INVESTMENT ASSETS**<br>Balance at 1 July 2021<br>(Disposals)<br>(Depreciation)/appreciation on revaluation<br>Balance at 30 June 2022<br>Represented by:<br>Charities Property Fund<br>Cambridge University Endowment Fund<br>Total<br>**11 TRADE AND OTHER RECEIVABLES**<br>Members of College<br>Sundry debtors|**2022**<br>**£**<br>33,332,465<br>-<br>(763,572) <br>32,568,893<br>2,311,032<br>30,257,861<br>32,568,893<br>**2022**<br>**£**<br>156,876<br>446,302<br>603,178|**2021**<br>**£**<br>28,987,379<br>(1,000,039)<br> 5,345,125|
|---|---|---|
|||33,332,465|
|||1,950,648<br>31,381,817|
|||33,332,465|
|||**2021**<br>**£**<br>40,594<br>322,444|
|||363,038|



30 



**Clare Hall** 

## **Notes to the Accounts for the year ended 30 June 2022:** 

|**Clare Hall**<br>**Notes to the Accounts for the year ended 30 June 2022:**|||
|---|---|---|
|**13 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>**2022**<br>**2021**<br> <br>**£**<br>**£**<br>Members of College<br>170,458<br>218,733<br>Trade creditors<br>240,206<br>293,025<br>Tax and pension funds<br>29,002<br>24,926<br>University composition fees<br>60,244<br>54,660<br>Bank loans<br>1,900,000<br>-<br>2,399,910<br>591,344<br>Of the bank loans, £1,900,000, which was borrowed during 2017-18, is repayable in January 2023, with<br>interest chargeable at a floating rate of 1.10% over the Bank of England Base Rate, and £1,500,000 is<br>repayable in June 2048, with interest chargeable at a fixed rate of 4.58%. Both loans are unsecured, and the<br>College has no other borrowings.<br>**15**<br>**PENSION DEFICIT (CCFPS)**<br>**2022**<br>**2021**<br>**Total**<br>**Total**<br>£<br>£<br>Balance at beginning of year<br>693,512<br>875,784<br>Movement in year:<br>Current service cost including life assurance<br>116,178<br>157,973<br>Contributions<br>(98,860)<br>(102,642)<br>Other finance cost<br>12,634<br>12,853<br>Actuarial (gain)/loss recognised in Statement of Comprehensive<br>Income and Expenditure<br>(349,949)<br> (250,456)<br>373,515<br>693,512<br>**16**<br>**PENSION DEFICIT (USS)**<br>**2022**<br>**2021**<br>£<br>£<br>Balance at beginning of year<br>102,582<br>120,099<br>(Credit)/Charge to comprehensive income<br>39,793<br>(17,517)<br>142,375<br>102,582<br>**12**<br>**CASH**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>Bank current accounts<br>1,450,386<br>1,187,435<br>Cash in hand<br>685<br>1,408<br>1,451,071<br>1,188,843<br>**14**<br>**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN**<br>**ONE YEAR**<br>**2022**<br>**2021**<br>**£**<br>**£**<br>Bank loans<br>1,500,000<br>3,400,000<br>1,500,000<br>3,400,000|**2021**<br>**£**<br>1,187,435<br>1,408||
||1,188,843||
||**2021**<br>**£**<br>218,733<br>293,025<br>24,926<br>54,660<br>-||
||591,344||
||**2021**<br>**£**<br>3,400,000||
||3,400,000||
|||693,512|
|||**2021**<br>£<br>120,099<br>(17,517)|
|||102,582|



31 



**Clare Hall** 

## **Notes to the Accounts for the year ended 30 June 2022:** 

|**17**|**ENDOWMENT FUNDS**|||||
|---|---|---|---|---|---|
|||**Restricted**|**Unrestricted**|**Total**|**Total**|
|||**Permanent**|**Permanent**|**2022**|**2021**|
|||**£**|**£**|**£**|**£**|
||**Balance at beginning of year:**|||||
||Capital|10,291,515|11,559,013|21,850,528|18,434,379|
||New donations and endowments|22,500||22,500||
||Reserve transfer|21,576|-|21,576|-|
||(Decrease)/increase in market value of|||||
||investments|(235,756)|(264,793)|(500,549)|3,416,149|
||**Balance at end of year**|10,099,835|11,294,220|21,394,055|21,850,528|
||**Analysis by type of purpose:**|||||
||Fellowship Funds|7,419,035|-|7,419,035|7,592,973|
||Scholarship Funds|2,409,949|-|2,409,949|2,466,450|
||Bursary Funds|73,363|428,073|501,436|491,111|
||Other Funds|197,488|-|197,488|179,091|
||General Endowments|-|10,866,147|10,866,147|11,120,903|
||**Total**|10,099,835|11,294,220|21,394,055|21,850,528|
||**Analysis by asset:**|||||
||Investments|10,055,759|11,189,233|21,244,992|21,745,541|
||Cash|44,076|104,987|149,063|104,987|
||**Total**|10,099,835|11,294,220|21,394,055|21,850,528|



32 



## **Clare Hall** 

## **Notes to the Accounts for the year ended 30 June 2022:** 

|**18** **RESTRICTED RESERVES**<br>**Balance at beginning of year**<br>Capital<br>Accumulated income<br>New donations<br>Reserve transfer<br>Investment Income<br>Capital grants utilised<br>Expenditure<br>(Decrease)/increase in market value of investments<br>**Balance at end of year**<br>Capital<br>Accumulated Income<br>**Analysis of other restricted funds/donations**<br>**By type of purpose:**<br>Fellowship Funds<br>Scholarship Funds<br>Bursary Funds<br>Other Funds|**Capital**<br>**grants**<br>**unspent**<br>**Permanent**<br>**unspent**<br>**and other**<br>**restricted**<br>**income**<br>**Restricted**<br>**expendable**<br>**2022**<br>**Total**<br>**2021**<br>**Total**<br>**£**<br>**£**<br>**£**<br>**£**<br>-<br>-<br>4,373,849<br>4,373,849<br>3,826,521<br>-<br>946,698<br>664,813<br>1,611,511<br>1,330,918|
|---|---|
||-<br>946,698<br>5,038,662<br>5,985,360<br>5,157,439|
||29,693<br>-<br>439,913<br>469,606<br>64,914<br>-<br>(21,576)<br>-<br>(21,576)<br>-<br>-<br>353,824<br>148,045<br>501,869<br>477,559<br>(7,558)<br>-<br>-<br>(7,558)<br>-<br>-<br>(159,543)<br>(235,903)<br>(395,446)<br>(423,659)<br>-<br>(3,705)<br>(100,194)<br>(103,899)<br>709,107|
||22,135<br>1,115,698<br>5,290,523<br>6,428,356<br>5,985,360|
||22,135<br>-<br>4,277,393<br>4,299,528<br>4,535,629<br>-<br>1,115,698<br>1,013,130<br>2,128,828<br>1,449,731|
||22,135<br>1,115,698<br>5,290,523<br>6,428,356<br>5,985,360|
||-<br>841,791<br>2,395,045<br>3,236,836<br>2,937,692<br>-<br>245,340<br>2,778,259<br>3,023,599<br>2,869,288<br>-<br>7,670<br>20,720<br>28,390<br>42,026<br>22,135<br>20,897<br>96,499<br>139,531<br>136,354|
||22,135<br>1,115,698<br>5,290,523<br>6,428,356<br>5,985,360|



33 



_**Clare Hall**_ 

## **Notes to the Accounts for the year ended 30 June 2022:** 

## **19 STAFF** 

|**Staff costs:**<br>Emoluments<br>Social security costs<br>USS pension costs<br>CCFPS pension costs<br>AVIVA Pension Costs<br> **Average staff numbers:**<br>Academic<br>Non-academic (full-time equiv.)|**College**<br>**Fellows**<br>**£**<br>217,999<br>17,372<br>65,916<br>-<br>-<br>301,287<br>50<br>2<br>2|**Other**<br>**academic**<br>**£**<br>71,204<br>9,344<br>-<br>-<br>2,441<br>82,989<br>1<br>-<br>1|**Non-**<br>**academic**<br>**£**<br>986,896<br>82,804<br>25,354<br>62,433<br>45,082<br>1,202,569<br>-<br>32<br>32|**Total**<br>**2022**<br>**£**<br>1,276,099<br>109,520<br>91,270<br>62,433<br>47,523<br>1,586,845<br>51<br>34<br>85|**Total**<br>**2021**<br>**£**<br>1,105,392<br>92,256<br>35,558<br>40,977<br>44,477|
|---|---|---|---|---|---|
||||||1,336,177|
||||||48<br>37|
||||||85|



Of the 52 fellows declared above 15 are stipendiary. 

No officer or employee of the College, including the Head of House, received emoluments of over £100,000. 

## **Key management personnel** 

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College; these are the President, Vice President, Bursar, Senior Tutor, Tutors, Fellowship Committee Chair, Praelector and a Research Fellow. 

|Key management personnel- aggregated emoluments|**2022**<br>**£**<br>**2021**<br>**£**<br>272,548<br>224,458|
|---|---|



The trustees receive no remuneration in their role as trustees of the charity. 

## **20 PENSION SCHEMES** 

The College’s employees belong to three principal pension schemes, the Universities Superannuation Scheme (USS), the Cambridge Colleges Federated Pension Scheme (CCFPS) and the Aviva Cambridge Colleges GPP. The total pension cost for the period was £161,433 (2021: £138,529). 

## _**Universities Superannuation Scheme**_ 

The total cost charged to the Statement of Comprehensive Income and Expenditure in the year is £91,270 (2021: £35,558) as shown in note 19. 

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

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

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

34 



_**Clare Hall**_ 

## **Notes to the Accounts for the year ended 30 June 2022:** 

## **20 PENSION SCHEMES continued** 

## _**Universities Superannuation Scheme cont'd**_ 

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

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

## **2020 valuation** 

Mortality base table 101% of S2PMA “light” for males and 95% of S3PFA for females Future improvements to CMI 2019 with a smoothing parameter of 7.5, an initial addition of 0.5% p.a. and mortality 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: 

||**2022**|**2021**|
|---|---|---|
|Males currently aged 65 (years)|23.9|24.7|
|Females currently aged 65 (years)|25.5|26.1|
|Males currently aged 45 (years)|25.9|26.7|
|Females currently aged 45 (years)|27.3|27.9|



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

||**2022**|**2021**|
|---|---|---|
|Discount rate|3.31%|0.87%|
|Pensionable salary growth|n/a|n/a|
|Pension increases (CPI)|4.00%|2.00%|



35 



_**Clare Hall**_ 

## **Notes to the Accounts for the year ended 30 June 2021:** 

## **20 PENSION SCHEMES continued** 

## _**Cambridge Colleges Federated Pension Scheme**_ 

The College is a member of a multi-employer defined benefit scheme, the Cambridge Colleges Federated Pension Scheme, in the United Kingdom. The Scheme is a defined benefit final salary pension scheme that was originally set up, under an interim Trust Deed, on 19 July 1977 as a defined benefit scheme. 

The contribution made by the College, including PHI, in respect of the year ended 30 June 2022 was £62,433 (2021: £40,977). The contribution rate payable by the College was 28.98% of pensionable salaries. 

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

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

||**30-Jun-22  **|**30-Jun-21**|
|---|---|---|
|Discount rate|3.80%|1.80%|
|Increase in salaries|3.25%|3.10%|
|RPI assumption|3.45%|3.40%|
|CPI assumption|2.75%|2.60%|
|Pension increases in payment (RPI Max 5% p.a.)|3.30%|3.30%|
|Pension increases in payment (RPI Max 2.5% p.a.)|2.05%|1.95%|



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

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

This results in the following life expectancies: 

- Male age 65 now has a life expectancy of 21.9 years (previously 21.9 years) 

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

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

- Female age 45 now and retiring in 20 years has a life expectancy of 25.8 years (previously 25.7 years) 

Members are assumed to retire at their normal retirement age (65) apart from in the following indicated cases: 

||Male|Female|
|---|---|---|
|Active Members – Option 1 Benefits|64|64|
|Deferred Members – Option 1 Benefits|63|62|



Allowance has been made at retirement for non-retired members to commute part of their pension for a lump sum on the basis of the current commutation factors in these calculations. 

## **Employee Benefit Obligations** 

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

|Present value of plan liabilities<br>Market value of assets<br>Net defined benefit liability|**30-Jun-22**<br>**£**<br>(2,548,800)<br>2,175,285<br> **(373,515)**|**30-Jun-21**<br>**£**<br>(3,216,735)<br>2,523,223|
|---|---|---|
|||**(693,512)**|



36 



_**Clare Hall**_ 

## **Notes to the Accounts for the year ended 30 June 2022:** 

## **20 PENSION SCHEMES continued** 

## _**Cambridge Colleges Federated Pension Scheme cont’d**_ 

The amounts recognised in the Statement of Comprehensive Income and Expenditure for the year ending 30 June 2022 (with comparative figures for year ending 30 June 2021) are as follows: 

|Current service cost<br>Administrative expenses<br>Interest on net defined benefit liability<br>**Total**|**30-Jun-22**<br> <br>**£**<br>105,328<br>10,850<br>12,634<br>**128,812**|**30-Jun-21**<br>**£**<br>147,949<br>10,024<br>12,853|
|---|---|---|
|||**170,826**|



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

|Present value of plan liabilities at beginning of period<br>Current Service cost<br>Employee contributions*****<br>Benefits paid<br>Interest on plan liabilities<br>Actuarial (gains)<br>**Present value of Scheme liabilities at end of period**|**30-Jun-22**<br>**£**<br>3,216,735<br>105,328<br>2,553<br>(71,970)<br>58,188<br>(762,034)<br>**2,548,800**|**30-Jun-21**<br>**£**<br>3,202,906<br>147,949<br>2,379<br>(73,788)<br>46,727<br>(109,438)|
|---|---|---|
|||**3,216,735**|



***** Note that the College has a salary sacrifice arrangement in place. 

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

|Market value of plan assets at beginning of period<br>Contributions paid by College<br>Employee contributions<br>Benefits paid<br>Administrative expenses<br>Interest on plan assets<br>Return on assets, less interest included in SOCIE<br>**Market value of plan assets at end of period**<br>Actuarial return on plan assets|**30-Jun-22**<br>**£**<br>2,523,223<br>98,860<br>2,553<br>(71,970)<br>(11,889)<br>45,554<br>(411,046)<br>**2,175,285**<br>(365,492)|**30-Jun-21**<br>**£**<br>2,327,122<br>102,642<br>2,379<br>(73,788)<br>(12,219)<br>33,874<br>143,213|
|---|---|---|
|||**2,523,223**|
|||177,087|



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

|Equities and Hedge Funds<br>Bonds & Cash<br>Property<br>**Total**|**30-Jun-22**<br>52%<br>34%<br>14%<br>**100%**|**30-Jun-21**<br>48%<br>42%<br>10%|
|---|---|---|
|||**100%**|



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

37 



## _**Clare Hall**_ 

## **Notes to the Accounts for the year ended 30 June 2022:** 

## **20 PENSION SCHEMES continued** 

## _**Cambridge Colleges Federated Pension Scheme cont’d**_ 

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

|Return on assets, less interest included in SOCIE<br>Expected less actual plan expenses<br>Experience gains and losses arising on plan liabilities<br>Changes in assumptions underlying the present value of<br>plan liabilities<br>**Actuarial  gain recognised in OCI**|**30-Jun-22**<br>**£**<br>(411,046)<br>(1,039)<br>(186,979)<br>949,013<br>**349,949**|**30-Jun-21**<br>**£**<br>143,213<br>(2,195)<br>67,538<br>41,900|
|---|---|---|
|||**250,456**|



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

|Net defined benefit liability at beginning of year<br>Recognised in (deficit)/surplus for the year<br>Contributions paid by the College<br>Re-measurement of net defined benefit liability recognised<br>in OCI<br>**Deficit in Scheme at the end of the year**|**30-Jun-22**<br>**£**<br>(693,512)<br>(128,812)<br>98,860<br>349,949<br>**(373,515)**|**30-Jun-21**<br>**£**<br>(875,784)<br>(170,826)<br>102,642<br>250,456|
|---|---|---|
|||**(693,512)**|



## **Funding Policy** 

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

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

- Annual contributions of not less than £10,411 p.a. payable for the period 1 July 2021 to 31 July 2027. 

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

## _**Aviva Cambridge Colleges GPP**_ 

The College operates a defined contribution pension scheme, mainly for permanent contracted non-academic employees which complies with the requirements of the Pensions Act 2006 and Auto Enrolment. This scheme is provided by Aviva and has been in operation since July 2017 and replaces the CCFPS scheme which is now closed to new members. 

## **21 RELATED PARTY TRANSACTIONS** 

Owing to the nature of the College's operations and the composition of the Governing Body, it is inevitable that transactions will take place with organisations in which a member of the Governing Body has an interest. Any transactions involving organisations in which a member of the Governing Body has an interest are conducted at arm’s length and in accordance with the College's normal procedures. 

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

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

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

38 



_**Clare Hall**_ 

## **Notes to the Accounts for the year ended 30 June 2022:** 

## **21 RELATED PARTY TRANSACTIONS continued** 

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

|**From**<br>**To**<br>£0<br>£20,000<br>£20,001<br>£30,000<br>£30,001<br>£40,000<br>£40,001<br>£50,000<br>£50,001<br>£60,000<br>£60,001<br>£70,000<br>**Total**|**2022**<br>**Number**<br>11<br>2<br>-<br>1<br>-<br>1<br>**15**|**2021**<br>**Number**<br>9<br>3<br>1<br>1<br>-<br>-|
|---|---|---|
|||**14**|



The total Trustee salaries were £217,998 for the year (2021: £186,519). The trustees were also paid other taxable benefits (including associated employer National Insurance contributions and employer contributions to pensions) which totalled £92,074 for the year (2021: £66,135). 

## **22 CONSOLIDATED RECONCILIATION AND ANALYSIS OF NET DEBT** 

|**2 CONSOLIDATED RECONCILIATION AND ANALYSIS OF NET DEBT**||||||
|---|---|---|---|---|---|
|**Cash and cash equivalents**<br>**Borrowings:**<br>**Unsecured loans**<br>Amounts falling due within one year<br>Amounts falling due after more than one year<br>**3 FINANCIAL INSTRUMENTS**<br>**Financial assets**<br>_Financial assets that are equity instruments measured at cost less impairment_<br>Other equity investments<br>_Financial assets that are debt instruments measured at amortised cost_<br>Cash and cash equivalents<br>Other debtors<br>**Financial liabilities**<br>_Financial liabilities measured at amortised cost_<br> Loans<br>Trade creditors<br>Other creditors|**At 1 July**<br>**2021**<br>**£000**<br>1,189<br>-<br>3,400<br>**(2,211)**||**Cash**<br>**Flows**<br>262<br>1,900<br>(1,900)<br>**262**<br>**2022**<br>**£000**<br>32,569<br>1,451<br>603<br>**34,623**<br>3,400<br>240<br>260<br>**3,900**||**At 30 June**<br>**2022**<br>**£000**<br>1,451<br>1,900<br>1,500|
||||||**(1,949)**|
||||||**2021**<br>**£000**<br>32,310<br>1,189<br>363<br>**33,862**<br>3,400<br>293<br>298<br>**3,991**|
|||||||
|||||||
|||||||



## **23 FINANCIAL INSTRUMENTS** 

## **24 Lease Obligations** 

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

|Land and buildings:<br>Expiring between one and five years|**2022**<br>**£000**<br>114|**2021**<br>**£000**<br>100|
|---|---|---|



39