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2023-06-30-accounts

QUEENS’ COLLEGE, CAMBRIDGE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30[th] JUNE 2023

QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

Contents Page
Reference and Administrative Details 3 - 6
Structure, Governance and Management 7 - 10
Aims and Objectives of the College
10 - 11
Public Benefit 12 - 13
Review of Operations 14 - 19
Financial Review 20 - 29
Responsibilities of the Governing Body 30
Independent Auditors Report 31 - 34
Statement of Principal Accounting Policies 35 - 41
Consolidated Statement of Comprehensive Income & 42
Expenditure
Statement of Changes in Reserves 43
Consolidated Balance Sheet 44
Consolidated Cash Flow Statement 45
Notes to the Financial Statements 46 - 64

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QUEENS’ COLLEGE, CAMBRIDGE

REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 30[th] JUNE 2023

The full name of the College is “The Queen’s College of St Margaret and St Bernard, commonly called Queens’ College in the University of Cambridge”. The College is a corporate body consisting of the President, Fellows and Scholars.

The Governing Body, which consists of the President and the Fellows, with four student observers, holds at least six meetings each year. The Governing Body met ten times in the year to which this report relates. The President, Professorial Fellows and Official Fellows are the voting members of the Governing Body and, since the Governing Body exercises general control and management of the College, its voting members are the trustees of the charity.

*President President Dr M A El-Erian

President President Prof. J C Muldrew Bye-Fellows Dr M A El-Erian Prof. J W P Campbell Prof. A D Challinor Dr H R N Jones Prof. R R Weber[6 ] Life Fellows Prof. M J Dixon, FAcSS Prof. E A H Hall, CBE[6 ] Prof. A C Spearing Dr A C Thompson Prof. G H Treece Dr B A Callingham Prof. J R Gog, OBE Prof. A C Rice Prof. J Diggle, FBA Prof. A A Seshia Dr R M Faragher Prof. J E Carroll Prof. E M Terentjev Dr T Forster[5 ] Revd Dr B L Hebblethwaite Prof. I Sitaridou Dr J R Bellis Dr J T Green Dr A Zurcher Dr C Hill Dr W A Phillips Dr A M Rossi Dr A C Bonner Dr R D H Walker Mr J Spence, DL Dr P Bambrough Dr A D Cosh Dr G J McShane Dr C Clark Prof. A. N. Hayhurst Prof. M Edmonds Dr L Davies Prof J Jackson, CBE FRS[6] Prof. H J Stone Dr J Jahić Dr C J Pountain Dr J J Maguire Dr C Mishra Prof. Lord Oxburgh, KBE FRS FREng Dr G M Fraser Dr E Weir[6 ] Revd Dr J M Holmes Dr L S Tiley Mr N Morris[3] Dr H J Field Dr T S Butlin Dr K Hendry[6] Prof. R L Jones[6] Prof. R Nickl[5 ] Mr M Boase[6] Prof. A N Lasenby Prof. S J Price Mr J Perkins[6] Prof. K F Priestley Dr E Moyroud Dr J Mitchell[6] Dr C N Pitelis Dr D J Butterfield Dr D Orchard[6] Dr E G Kahrs Dr A Paterson Mr C Edsall[6 ] Prof. D R Ward Dr M E B Tait Dr M Fuchs[6 ] Prof. J L Scott Dr F I Paddeu Dr L Mullen[6 ] Prof. Lord Eatwell Mr R M C Kitt Dr I Kater[6 ] Dr M J Milgate Revd T C Harling Dr I K Patterson Research Fellows Dr S Haggarty Professorial Fellows Prof. C J Bickerton Dr R Van Rosenberg[[7 ]] Dr E Noterman[[2 ]] Prof. D K Menon Dr C Brendon Dr H Symington[[6 ]] Prof. R W Prager, FREng Dr D J Parker Dr E O’Keeffe[[6 ]] Prof. E A H Hall, CBE[5] Prof. G Denyer Willis Prof. N D Lawrence Dr E McPherson Emeritus Fellows Prof. M Guillén[9 ] Dr C Warnick Dr A M W Glass Prof. L Reisch Prof. A Beresford Prof. J Russell Prof. J D Brenton[6 ] Dr G Atkins Prof. A M Gamble *Official Fellows Prof. A Marsham Dr J W Kelly Dr J Blundell Dr T Forster[[6 ]] Prof. R R Weber[5 ] Prof. J A Jackson, CBE FRS[5 ] Dr T Denmead 1 From 18 July 2022 From 18 July 2022 Dr P McMurray 2 To 31 August 2022 Prof. R G Fentiman QC Hon Causa To 31 August 2022 Mr A D Bainbridge 3 From 1 September 2022 Prof. P H Haynes, FRS From 1 September 2022 Dr T J Eggington 4 From 12 September 2022 Prof. D Cebon, FREng From 12 September 2022 Dr J Garrison 5 To 30 September 2022 Prof. R L Jones[5 ] To 30 September 2022 Revd M Bayliss[2 ] 6 From 1 October 2022 From 1 October 2022 Prof. A H Gee Dr C Peñasco Patón 7 To 31 December 2022 To 31 December 2022 Prof. J W F Allison Prof. B J Glover Dr S WilliamsDr E Webster[8 ] 8 9 To 31 January 2023 To 30 June 2023 9 To 31 January 2023 To 30 June 2023 To 31 January 2023 To 30 June 2023 To 30 June 2023 Prof. R A W Rex Dr S Haines[1 ] Prof. C E Bryant, FBPhS, FLSW Revd A H Jones[4 ] Prof. M P V Crowley

Research Fellows Dr R Van Rosenberg[[7 ]] Dr E Noterman[[2 ]] Dr H Symington[[6 ]] Dr E O’Keeffe[[6 ]] Emeritus Fellows Dr A M W Glass Prof. J Russell Prof. A M Gamble Dr J W Kelly Dr T Forster[[6 ]] 1 From 18 July 2022 From 18 July 2022 2 To 31 August 2022 3 From 1 September 2022 4 From 12 September 2022 5 To 30 September 2022 6 From 1 October 2022 From 1 October 2022 7 To 31 December 2022 To 31 December 2022 8 9 To 31 January 2023 To 30 June 2023 9 To 31 January 2023 To 30 June 2023 To 31 January 2023 To 30 June 2023 To 30 June 2023 * Charity Trustees

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QUEENS’ COLLEGE, CAMBRIDGE

REFERENCE AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 30[th] JUNE 2023

Senior Officers

President Dr M A El-Erian Vice-President Professor M Edmonds Senior Bursar Mr J Spence Senior Tutor Dr A C Thompson

PRINCIPAL COMMITTEES

Bursarial Committee

Dr M A El-Erian, President Professor M Edmonds, Vice-President Mr J Spence, Senior Bursar Mr A D Bainbridge, Domestic Bursar Dr A C Thompson, Senior Tutor Mr R M C Kitt, Development Director Professor A D Marsham Dr E McPherson Dr E Moyroud Dr F I Paddeu Professor R A W Rex Professor A C Rice Professor I Sitaridou Professor R R Weber

Fellowships Committee

Dr M A El-Erian, President Dr A C Thompson, Senior Tutor Mr J Spence, Senior Bursar Professor P Haynes Professor R W Prager (until 1 March 2023) Professor E Terentjev Professor M P V Crowley Professor L Reisch Dr G Fraser Dr C Penasco Dr M E B Tait Dr A Zurcher

Investments Committee

Dr M A El-Erian, President Professor M Edmonds, Vice-President Mr J Spence, Senior Bursar Professor M J Dixon, Dean of College Professor D Cebon Dr J R Garrison Professor A H Gee Professor R R Weber Mrs A Koerling (Queens’ Alumnus) Mr A Pomfret (Queens’ Alumnus)

Teaching and Learning Committee

Dr A C Thompson, Senior Tutor Dr S Haines, Admissions Tutor All Directors of Studies of the College Tutors charged with Admissions Admissions Co-ordinator Graduate Administrator JCR President MCR President

Tutorial Committee

Dr M A El-Erian, President Dr A C Thompson, Senior Tutor Professor M J Dixon, Dean of College All Tutors of the College Revd T Harling, Dean of Chapel Revd A H Jones, Chaplain Mr A D Bainbridge, Domestic Bursar Ms J Schiller (Health and Wellbeing) Ms K Fadero (Health and Wellbeing) Ms E Farrar (Health and Wellbeing)

Graduate Committee

Professor A D Marsham Deputy Senior Tutor/Senior Tutor All Graduate Tutors of the College Mr A D Bainbridge, Domestic Bursar Student Support Team Representative Representative for Part-Time Courses MCR President MCR Secretary/Vice-President Post-Doctoral Research Associates Convenor MPhil Representative Graduate Administrator

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QUEENS’ COLLEGE, CAMBRIDGE

REFERENCE AND ADMINISTRATIVE INFORMATION

FOR THE YEAR ENDED 30[th] JUNE 2023

GOVERNING BODY ATTENDANCE LIST 2022-2023

ON LEAVE 2021-2022:

Prof. Roderic Jones Dr Graham McShane Dr Tore Butlin Dr Charles Brendon Dr Ella McPherson Dr Tyler Denmead Prof. Beverley Glover Prof. Graham Denyer Willis Dr Peter McMurray Prof. Richard Nickl (Easter 2022)

ON LEAVE 2022-2023:

Prof. Beverley Glover Prof. Alastair Beresford Dr Peter McMurray Prof. Graham Denyer Willis Dr Andrew Zurcher (Michaelmas 2022) Dr David Butterfield (Lent 2023) Prof. Richard Rex (Michaelmas 2022 and Lent 2023)

Ten Governing Body Meetings took place between 1 July 2022 – 30 June 2023. Fellows’ attendance was recorded as follows:

Dr M A El-Erian
 8/10 Mr J Spence 9/10 Dr T J Eggington 10/10
Prof. R R Weber 1/1 Prof. H J Stone 4/10 Dr J Garrison 9/10
Prof. J A Jackson 0/1 Prof. M Edmonds 7/10 Revd M Bayliss 1/1
Prof. R G Fentiman 6/10 Dr J J Maguire 10/10 Dr C Peñasco Patón 6/10
Prof. P H Haynes
 9/10 Prof. S J Price 6/10 Prof. N D Lawrence 2/10
Prof. D Cebon
 4/10 Dr E Moyroud 7/10 Prof. L Reisch 10/10
Prof. E A H Hall 1/1 Dr D J Butterfield 5/7 Prof. M Guillén 7/10
Prof. R W Prager
 5/10 Dr A Paterson 8/10 Dr S Williams 3/3
Prof. A H Gee
 10/10 Dr M E B Tait 7/10 Dr G Fraser 3/10
Prof. J W F Allison
 8/10 Dr F I Paddeu 9/10 Dr E Webster 5/10
Prof. R A W Rex
 4/6 Mr R M C Kitt 9/10 Dr S Haines 9/10
Prof. C E Bryant
 6/10 Revd T C Harling 9/10 Revd A H Jones 9/9
Prof. M P V Crowley
 5/10 Dr S Haggarty 8/10 Prof. J D Brenton 4/9
Prof. J W P Campbell
 8/10 Prof. C J Bickerton 4/10 Prof. L Tiley
9/10
Dr H R N Jones
 7/10 Dr D J Parker 7/10 Dr Tore Butlin 6/10
Prof. M J Dixon
 7/10 Dr E MacPherson 6/9 Prof. R L Jones 0/1
Prof. D K Menon
 7/10 Dr C Warnick 10/10 Prof. J C Muldrew 7/10
Dr A C Thompson
 10/10 Prof. A Beresford 1/1 Prof. J R Gog 9/10
Prof. A A Seshia
 9/10 Dr G Atkins 9/10 Prof. R Nickl 0/1
Prof. E M Terentjev
 8/10 Prof. A Marsham 10/10 Dr C Brendon 7/9
Prof. I Sitaridou
 9/10 Dr J Blundell 2/10
Dr A Zurcher
 7/7 Dr T Denmead 8/9
Dr A M Rossi
 8/10 Mr A D Bainbridge 10/10

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QUEENS’ COLLEGE, CAMBRIDGE

REFERENCE AND ADMINISTRATIVE INFORMATION

FOR THE YEAR ENDED 30[th] JUNE 2023

PROFESSIONAL ADVISORS

Auditors Actuaries Peters Elworthy & Moore Cartwright Group Ltd Salisbury House Suite 7, 2[nd] Floor, The Hub, IQ Farnborough Station Road Farnborough Cambridge Hampshire CB1 2LA GU14 7JP

Bankers

National Westminster Bank plc 23 Market Street Cambridge CB2 3PA

Investment Fund Managers

Rathbones Group Plc Sarasin & Partners LLP 8 Finsbury Circus Juxon House London 100 St Paul’s Churchyard EC2M 7AZ London EC4M 8BU

Property Advisors

Bidwells LLP Carter Jonas LLP Trumpington Road 6 – 8 Hills Road Cambridge Cambridge CB2 9LD CB2 1NH

Solicitors

Mills & Reeve LLP Francis House 112 Hills Road Cambridge CB2 1PH

CHARITY INFORMATION

Charity Registration 1137495 Registered Address Silver Street, Cambridge CB3 9ET Website www.queens.cam.ac.uk

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Organisation

Queens’ College, Cambridge is a self-governing academic community and body corporate, comprising the President, Fellows and Scholars and is one of the thirty-one Colleges in the University of Cambridge. The provisions which regulate the purposes and administration of the College are to be found in its Royal Charter, dated 30[th] March 1448, and its Statutes, as made in 1955 and variously amended from time to time, most recently in 2017.

The Governing Body

The Charity Trustees of the College are the voting members of the Governing Body, being its President, Professorial Fellows and Official Fellows, appointed by the Governing Body in accordance with the Statutes of the College. The membership of the Governing Body is given on page 3 to 5.

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

Under the College Statutes, the Governing Body has the discretion to form committees to consider and to make recommendations to the Governing Body in accordance with the College’s Statutes. The Governing Body also has the discretion to delegate powers to committees. The Governing Body has formed a number of committees, the principal ones being:-

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

These Committees are a key component of the College’s system of internal control, which is designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the extent and nature of those risks and to manage them efficiently, effectively and economically. These Committees undertake detailed scrutiny of the issues which the Governing Body has placed within their respective remits and this work informs the recommendations each Committee makes to the Governing Body. This process was in place for the year ended 30[th] June 2023 and up to the date of approval of the financial statements. The Governing Body is responsible for ensuring the effectiveness of the systems of internal control: all the above Committees make regular reports to the Governing Body through the medium of detailed minutes, as well as dedicated reports. During the year, all Governing Body meetings were held in a hybrid format.

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

Induction and Training of Members of the Governing Body

Upon admission to the Fellowship, new members of the Governing Body receive, inter alia:-

Each new member has an induction meeting with the Senior Bursar and the Senior Tutor, prior to attending a meeting of the Governing Body.

Attendance of Trustees at meeting of the Governing Body during the year is given on page 5.

Key Management

As detailed in note 7 to the accounts, the key management personnel are the President, Senior Bursar and Senior Tutor. These Officers have the authority and responsibility for planning, directing and controlling the activities of the College. These Officers, together with the Vice-President, the Senior Fellow, Admissions Tutor, Deputy Senior Tutor, Domestic Bursar, Dean of College, Dean of Chapel, who is also the Head of Welfare, the Financial Tutor, the Development Director and the Chair of the Graduate Committee meet regularly to consider developing operational issues as they arise to assist in formulating the College’s response. During the year this group has met approximately fortnightly during Term.

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

Risk Management

The Governing Body is committed to an ongoing policy of identifying, monitoring and managing the risks that might adversely affect the operations, reputation and general well-being of the College. The Bursarial Committee, chaired by the President, usually reviews at least twice each year the operational, financial, regulatory and legal risks facing the College, (including reviewing the Corporate Risk Register) and reports accordingly to the Governing Body. The Governing Body keeps under review the structures to deal with risk and is satisfied that appropriate structures are in place to identify, manage and mitigate the risks faced by the College.

The principal areas of risk faced by the College, and the measures taken to manage them, have been identified by the Governing Body as follows and are covered in detail in the Corporate Risk Register mentioned above:

The College has implemented a robust process of budgeting and forecasting to keep costs associated with the College’s core activities under constant review in the light of any changes in funding or other income sources. The College’s Investments Committee benefits from the expertise of two external members and aims to maintain a diversified portfolio of investment assets to try to minimise the incidence of correlation between asset classes.

The College has a strong Fellowship and an ethos of supportive inter-personal relationships within the Fellowship, service from welfare and other support staff and pastoral support arrangements allowing Directors of Study/Supervisors to retain focus on intellectual engagement. The College regularly reviews its stipend structures and benchmarks appropriately within the Collegiate University and is continually monitoring terms and benefits. There is a regular review of teaching needs and engagement in the University Teaching Officer (“UTO”) Scheme, where possible.

The College has a transparent process with academic criteria uniformly applied across all fields and University-trained interviewers. The College runs an extensive outreach programme aimed at attracting the strongest candidates regardless of socio-economic background.

Academic reviews conducted by the students’ Directors of Studies, alongside analysis of students’ feedback by the Senior Tutor. Academic and pedagogical best practice encouraged by regular review, at the Teaching and Learning Committee. Benchmarking against other Colleges via the Senior Tutor’s Committee and direct liaison with both the JCR and MCR Committees, Cambridge University Student Union where necessary. Engagement with the Office for Students as PREVENT regulator.

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

The College has extensive in-house pastoral and welfare provision together with access to additional external expertise.

The condition of the estate is regularly monitored by the Maintenance Department though a programme of planned preventative maintenance, along with the assessment of maintenance requests and complaints, ensuring a proactive approach to estates management. In addition to this, there is an ongoing maintenance capital program in place addressing the refurbishment and decarbonisation of the buildings. IT and other infrastructure, both physical and digital, undergo regular review and are supported by a continuous investment program, emphasising the importance of business continuity, staff training and awareness in relation to cyber security. Both the Domus Committee and the Bursarial Committee oversee and monitor these activities.

Scope of Financial Statements

The financial statements are a consolidation of the results of Queens’ College and its subsidiaries, QC Enterprises Limited and Q College Property Limited, which are both wholly owned by the College. Q College Property Limited has continued to be non-trading during the year. QC Enterprises is the corporate vehicle through which the College undertakes its commercial conference and catering activities, while the College undertakes directly all other accommodation and catering activities. Any financial surplus made by QC Enterprises is donated to the College.

AIMS AND OBJECTIVES OF THE COLLEGE

The College is an institution of higher education. Its purposes are the promotion of study and prayer.

The College has the following aims and objectives:

Remaining an independent foundation, while forming an integral part of a collegiate university, is fundamental to the College’s long-term strategy and well-being. The College endorses the University’s mission and core values and agrees that the partnership between the University and the Colleges is central to Cambridge’s future development. The College will continue to play an active role in University bodies and in contributing to the formulation of University policy.

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

In pursuit of its aims and objectives, as well as its charitable objects, the College admits (as junior members) Undergraduate and graduate students matriculated in the University of Cambridge. It provides financial and other support to those of its members who require it in order to achieve its aims and objects and it supports teaching and research in the University. In furtherance of its objects, the College maintains and manages an endowment of property and financial assets. Besides financial and tutorial support, the College also supplies accommodation, catering and other services to its members and others.

The Governing Body has considered how best to support delivery of the College’s aims and objectives and has adopted a strategic approach represented by the diagram below.

During the year the College adopted the review of its strategy and strategic imperatives under the “Five Pillars” approach as outlined in last year’s Report and Accounts. This is to build on and significantly enhance the College’s current position in all aspects of its activities.

The Five Pillars to which approaches have been developed with the diverse participation of Fellows are; 1) Fostering the intellectual society; 2) Strengthening financial resilience and long-term viability; 3) Removing obstacles to even broader access and participation; 4) Ensuring a coherent, enabling, and sustainable infrastructure (both physical and technological); 5) Enhancing efficient, representative and accountable governance. Working parties, comprising members of the Governing Body, were established to undertake detailed work on each of the pillars and consideration was given to the various options available to the College to take matters forward. Each working party held an open meeting via Zoom to discuss the possible options and approached and to which all members of the Governing Body were invited. After consideration at the Governing Body, detailed approaches to each are now in train with a five to ten year time horizon.

The Five Pillars approach reflects the interdependencies within the College’s activity and need to ensure they are aligned, coherent and consistent to strengthen the College for the future. They also allow for exploiting synergies and efficiencies.

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

PUBLIC BENEFIT STATEMENT

In accordance with its Royal Charter of 1448, the College’s charitable objects are the promotion of study and prayer through the provision of a College in the University of Cambridge.

The Governing Body has complied with its duty regarding public benefit, showing regard to the Charity Commissions’ guidance.

The College provides, in conjunction with the University of Cambridge, an education for some 519 Undergraduate, 451 full-time and 138 part-time Postgraduate students (2021/22: 503, 427 and 133 respectively), which is recognised internationally as being of the highest standard. This education develops students academically and advances their leadership qualities and interpersonal skills, and so prepares them to play full and effective roles in society. In particular, the College provides:

The College additionally advances study through:

The College maintains an extensive Library (including important special collections), so providing a valuable resource for students and Fellows of the College, members of other Colleges and the University of Cambridge more widely, as well as external scholars and researchers.

The College carries forward the tradition, continuous since its foundation, of being a place of prayer. In particular, the College:

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

The resident members of the College, both students and academic staff, are the primary beneficiaries and are directly engaged in study.

However, beneficiaries also include students and academic staff from other Colleges in Cambridge and the University of Cambridge more widely, visiting academics from other higher education institutions and visiting schoolchildren and alumni of the College who have an opportunity to attend educational events at the College or use its academic facilities. The services in the College Chapel are open to the public and are attended by local residents and visitors to Cambridge.

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

REVIEW OF OPERATIONS

Queens’ admits students who have the greatest potential to benefit from the educational environment provided by the College and the University and it recruits academic staff who are able to contribute most to the academic excellence of the College, regardless of their financial, social, religious or ethnic background.

Undergraduate student applications are in the table below, showing the level of diversity of students attending Queens’. About one fifth of Undergraduate students are from overseas (including EU) backgrounds:

Applicants in Michaelmas Term 2022

Offers in 2021

*** OFFA applicants are defined broadly as applicants normally resident within the UK.

The above outcomes are entirely consistent with the College’s objectives in respect of admissions. The College charges the following fees:

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

Widening Participation

The College’s extensive widening participation programmes help young people from backgrounds which are traditionally under-represented at Cambridge to have the confidence and information to apply to top universities, including Cambridge. We work hard to provide age-relevant information and guidance about higher education and, in particular, to demythologise the application process at Cambridge. Interactions with those in years 12 and 13 target the application process and supports super-curricular discovery. Key stage 4 students receive advice on A level selection and early preparation, while younger pupils are encouraged to think about the benefits of higher education more generally and to broaden their horizons.

We work with teachers and careers advisors to guide them in how our application process works and to identify the qualities that we look for in our students. Our programme includes events for schools and those, such as Open Days, with a focus on individual applicants.

Our Admissions team make visits to schools and colleges across the UK, and host groups in Cambridge. We have particularly deep links with Bradford, Kent and the borough of Havering. We update our events programme regularly and are always looking for ways to enhance our offering and to work effectively with external partners. Our programme typically includes visit days, open days, personal statement and interview workshops and residential events.

We welcome school groups back to Cambridge and our programme of in-person visits to schools has regained pace, as a new team settles in. Among the several ways in which we measure the impact of our outreach work, the growth in applications, and therefore admissions, from schools with which we work closely stands out. Within total admissions and access costs of £0.798 million shown on page 47, £0.256 million was spent on Access and Widening Participation activity in the year. The College continues to regard Widening Participation as an essential activity and will continue to support and enhance it further.

Student Support

The Cambridge colleges collectively provide a bursary scheme for those of limited financial means. In 2022-23, 111 Undergraduates (out of our 449 Home Undergraduates) (2021-2: 115 and 471 respectively) received such bursaries with a total value of £310,315 (2021-2: £338,093). The scheme is approved by the Office for Students and provides benefits at a substantially higher level than the minimum OFS requirement. It is widely advertised on the University website, on the College websites and in the Admissions Prospectus. The College spent £254,307 on additional bursaries, including for post graduate students, in 2022-23 (2021-22: £146,215).

The College also supports all students through a grant scheme open to all to assist with attendance at conferences, and travel grants. In 2022-23 the College spent £125,378 on this scheme (2021-22: £118,039).

In addition to its other programmes, the College operates a hardship scheme for all students in financial hardship. In 2022-23 the College made hardship grants totalling £27,236 (2021-22: £35,233).

Provision of Welfare Support

The Health and Well-being team and Tutors provide specialist and professional care for students of the College. This consists of (although is not restricted to) general pastoral provision, Professional counselling, Cognitive Behavioural Therapy, mental and physical health support, bereavement counselling, eating disorder interventions and a series of programmes to help the move from school to university which brings with it increased independence.

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

More mental health issues are reported in today’s culture. This may be due to the problem increasing, including due to the aftermath of the Covid pandemic, the reduced stigma in articulating problems, feelings and medical conditions, and a raised expectation that institutions have a responsibility to act and support its members with the conditions they have. Welfare provision that individual Colleges provide are widely compared by students and applicants and is seen as a key indicator of the “student experience”.

Students from disadvantaged backgrounds may have additional concerns or issues that require support. Welfare, in this way, is part of the Colleges commitment to increase access for all.

The Health and Well-being team works alongside the Tutors of the College in providing pastoral support to students. Overall responsibility for this activity rests with the Senior Tutor, however the day-to-day management is devolved to the Head of Welfare (operationally) and the Head of Academic and Tutorial Services (administratively).

The Head of Health and Well-being also acts as the College Safeguarding Officer, one of the Harassment and Assault Officers, Police Liaison Officer and Deputy Head of Prevent and Dean of Chapel.

At present (in addition to the above roles) the College employs a part time Clinical Lead (also one of the Harassment and Assault Officers), a part time Mental Health Nurse/Welfare Officer/CBT Counsellor, a part time Counsellor/Coach, and a Chaplain (part of whose job involves providing pastoral support to the wider College community). There is also a third Harassment and Assault Officer who can be used in complex cases.

Where more specialist treatment is needed this is organised with professionals on a contracted basis by the Health and Well-being team. This, in the past, has included Psychiatric Services, Psychological practitioners, Scientific Coaching, Essay writing guidance, physical trainers, legal advice and physiotherapists.

Academic Staff

To fulfil its charitable purposes, the College employs College Lecturers, Tutors, Clergy and senior academic and administrative officers. These posts are qualifying offices under the College Statutes. The appointment of Fellows is a result of their employment in a qualifying office which office 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 occurs solely through their employment in a relevant qualifying office by means of salaries, stipends and employment related benefits and is objectively reasonable, measured against academic stipends generally; moreover, annual pay increases normally follow national settlements applying to the university sector, as implemented by the University of Cambridge. Without the employment through qualifying offices of Fellows, the College could not fulfil its charitable aims as a College in the University of Cambridge.

The President and Fellows of the College also receive benefits as beneficiaries. These comprise research grants, conference grants, book grants etc. These benefits are provided with the intention of furthering the College’s aims. The amounts of the benefits provided are objectively reasonable, measured against the academic benefits made available to other beneficiaries of the College.

Academic Performance

While all of our students took examinations and assessments of various sorts through the past academic year, the impact of the University and College Union Marking and Assessment boycott means that it is

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

impossible to assess how our students performed either in relative or absolute terms with any confidence at the time of writing

Capital Expenditure, Maintenance and Environmental Management

The ever-challenging economic backdrop left by the pandemic and high levels of inflation have challenged both external revenue streams and procurement. The College has continued to work within sensible financial constraints, focusing maintenance and project activity on safety related and business critical repairs, whilst continuing to progress plans capital projects to decarbonise the estate.

The wonderful donation of £1.25m from one of our Alumni towards works specifically related to Cripps Court, has meant the Cripps Hall Lantern, the beautiful vaulted-ceiling and external light source to the Hall, has been carefully refurbished. The works included installing an ambitious scaffold from Cripps Court, up and over the Armitage Room, and onto the Cripps Hall roof. The scaffold was also suspended within the Hall, to allow the Hall to remain operational. New glazing with remote window shutters were installed alongside new energy reducing LED lights. A final external access ladder will be installed during November 2023.

In the President’s Lodge, the cloakroom area has been refurbished and expanded, and the final dormer windows on the rear of the Lodge have been repaired and insulated.

The Housekeeping and Maintenance Departments have continued their ambitious refurbishment project of the external properties on Panton Street and in Newnham, replacing kitchens, bathrooms, fitted furniture and fixings, bringing the accommodation up to modern standards. The final stage will be Norwich Street and Maids Causeway planned for the summer of 2023.

To transition towards Net Zero Carbon by 2045 a masterplan has been developed from the site wide energy assessment and estate decarbonisation study completed in 2022. The financial planning is still in the early stages, but the initial studies indicate the decarbonisation and refurbishment demands over the next 20-30 years will require considerable investment of up to £150m.

Several major projects have been identified, including the complete refurbishment of the Erasmus building. Throughout the last year, a detail design has been developed and we are currently awaiting feedback on the planning application. The Erasmus roof will be utilised to discretely house air source heat pumps, and it is estimated, that this area of heat generation will be sufficient to feed Erasmus, Friars and Dokett buildings. Funding this work will be challenging (circa £8.6m) and the College is seeking low carbon government grants. It is hoped this project can start in 2024/25.

Sadly, the Owlstone Croft masterplan was refused planning permission in January 2023. This followed a protracted planning review process which gained the full support of the City Council Planning Officers, but despite being put forward as recommend for approval, the local Councillors refused the application.

The fundamental objective for this project, is to create a community and homes for our Postgraduate students at Owlstone Croft. The homes would be supported by inspirational study and community space and enhance the existing Owlstone Croft site meeting our educational needs and accommodation objectives. The plans also included degassing the existing buildings and enhancing the biodiversity of the site by over 50%, with new trees and native hedgerow and a wetland meadow.

Following the refusal, the College has launched an appeal, and sought a public inquiry over the summer of 2023. The public inquiry is due to commence on 26[th] September 2023.

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

On a more positive note, the College was successful in securing a new property on Grange Road. The house and grounds were previously owned by the Margaret Beaufort Institute of Theology and provide over 30 bedspaces, study and work rooms. This is a strategically important addition to the College estate.

This purchase will enable the College to better manage future refurbishment and sustainability projects elsewhere, including at Owlstone Croft and Erasmus, both of which will result in disruptions to student accommodation over the next 10-15 years. With Grange Road, this means that the College will no longer need to seek alternative external accommodation solutions for students, when tackling large scale developments and refurbishments.

Donations and Fundraising

The College’s fundraising efforts are primarily directed at raising money from our alumni. Our fundraising approach ensures that we understand and respect individual preferences for contact in relation to approaches seeking support, as well as more generally. Key objectives for the College include teaching, particularly endowing Fellowships, research, student support, widening participation as well as enhancing the endowment. The College is very grateful to those of its alumni and others who continue to support it so generously and enhanced their support as the College responded to the impact of the Covid-19 pandemic. In 2022/2023 the College received unrestricted donations totalling £2,406,000, new expendable restricted funds £2,186,000, and new endowments totalling £1,072,000, giving a total of £5,664,000 (£5.84 million 2021/2022) in support of its objectives.

The cost of the Alumni and Development Office (ADO), a College department, for the year was £720,261 compared to £579,491 in 2021/2022. The ADO costs include both fundraising and alumni relations activity, such as reunions and other events and publications. This year there have been some ‘in person’ events held and costs have been stable. As the amount received can vary significantly from year to year, the chart below details the three and five-year rolling average of donations received, as well as the annual cost of the ADO.

All fundraising is carried out by the ADO, which reports detailed quarterly results to the Bursarial Committee and a summary report to the Governing Body. The College is registered with the Fundraising Regulator and was not the subject of any complaints to that body in 2022/2023, nor did the College receive

18

QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

complaints about its fundraising activities from any other source. The College does not seek support from the public and takes active steps to respect the needs of any potential supporter who may be in a vulnerable circumstance or require additional care and support to make an informed decision.

Data handling

The College continues to monitor its data handling, reporting and Data Protection Statement in accordance with the UK GDPR requirements.

Equal Opportunities

The College is committed to the principle and practice of equal opportunities and strives to be an equal opportunities employer.

Residual Impact of the Covid-19 Pandemic on the College’s Operations

The Covid-19 pandemic had a profound impact on the College’s operations, both academic and nonacademic, and this impact has continued to an extent during the current year, especially in respect of external revenues.

In this year the academic side of the College’s activities were restored to a normal level of activity similar to that which prevailed prior to the Covid pandemic. All academic expenditure was restored, some areas such as travel grants for students enhanced, and in all respects the students received the normal experience of the academic and social life Cambridge has to offer.

As reported in last year’s accounts, the College faced a secular change in its operating environment with there being no demand during the pandemic for conferences and catering events. This forced us to restructure the operational departments, with teams cross-working and a complete change to how we work and a review of our processes. We continue to review the way in which the College operational teams operate to ensure we continue to learn lessons and seek further improvements. The staff have responded well to the challenges the College continues to face. The operational teams have performed well and cohesively throughout 2022/23, strengthened our effectiveness and ensuring we have strong foundation for further recovery in 2023/24.

There was some recovery in the number of conference and external catering events during the current year, but with an activity and revenue level far below that achieved prior to the onset of the pandemic. It will take time, effort, and a willingness throughout the College community to see further improvements in the revenues generated. The financial impact of this is covered in the financial review below.

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

FINANCIAL REVIEW

In common with other organisations, the financial year to 30 June 2023 has been a particularly challenging one in highly uncertain economic circumstances. The continuing after effects of the Covid-19 pandemic, together with the war in Ukraine, and high inflation have greatly affected the College. The College has continued to pursue its principal goals of providing a first class educational and research environment to Undergraduates, Postgraduates, and Fellows alike, whilst striving to live within its means and manage the challenges and uncertainties presented by the pandemic.

Financial Results

Consolidated Income and Expenditure Account

The College recorded an Unrestricted Deficit of £1,627,000 (2021/2022: -£944,000), after unrestricted donations of £2,406,000 (2021/22: £3,145,000), a Restricted Surplus of £2,022,000, (2021/22: £1,316,000) after restricted donations which mainly relate to supporting our education activities of £2,186,000 (2021/22: £1,316,000). The overall surplus, before other gains and losses, is £573,000 (2021/22: £1,754,000).

Year ended 30th June
Unrestricted Income
Unrestricted Expenditure
(Deficit) Surplus
Restricted Surplus (Deficit)
Endowments Surplus
(Deficit)
Total Surplus (Deficit)
before Other Gains and
Losses		 2023
£m
15.60
17.23
(1.63)
2.02
0.18		 2022
£m
14.00
14.94
(0.94)
1.31
1.38		 2021
£m
11.69
13.21
(1.52)
8.51
4.44		 2020
£m
11.93
13.81
(1.88)
3.36
2.46		 2019
£m
13.95
14.66
(0.71)
2.49
7.90
0.57 1.74 11.43 3.94 9.68

The lower level of surplus for the “Endowment” column (£178,000) largely reflects a combination of the Endowment expenditure on education and the difference between the investment income received in the year and the drawdown under the College’s total return methodology. This is covered further below.

The Unrestricted Deficit of £1,627,000 is realised after charging depreciation of £2,772,000 (2021/2022: £2,434,000). Adding back the depreciation charge and other non-cash items in the Income and Expenditure account, such as pension deficit provisions and any underspend on Restricted Funds, is a reasonable proxy for the cash the College has generated.

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

This year the College shows as part of its Comprehensive Income and Expenditure account other gains and losses relating to investments assets: there is a gain of £2,977,000 (2021/2022: £932,000 loss) and a decrease in pension liabilities of £466,000 (2021/2022: £6,107,000 liability decrease), and an unrealised gain on revaluation of fixed assets of £446,000 (2021/22: nil). The total surplus is £4,461,000 (2021/2022: £6,930,000 surplus).

There are several matters to draw to your attention:

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

Funding of the College

Queens’ College is funded from several sources as follows:

Year ended 30thJune 2023 2022 2021 2020 2019
Academic Fees 24.9% 26.3% 19.8% 24.5% 21.5%
College 20.3% 21.3% 11.0% 15.5% 20.6%
Accommodation
College Catering 5.8% 4.5% 0.8% 4.4% 5.7%
Conference Activities 6.6% 2.4% 0.0% 8.1% 9.3%
(including Catering)
Investment Income 17.1% 18.6% 13.7% 21.9% 11.7%
Donations 24.5% 26.0% 52.8% 22.5% 29.9%
Other 0.8% 0.9% 2.9% 3.1% 1.3%

The above table excludes new endowments from the calculations. Future income from the new endowments will appear as Investment Income. This year Restricted Donations have been included in the table. All prior years have been re-calculated accordingly.

Continuing Impact of Covid-19 on Financial Results

There has been a continuing effect of the Covid pandemic on the College’s results for this financial year is principally on the income side and particularly in respect of accommodation, catering, and conference revenues. The recovery has continued from the historic lows of 2021, with total revenues from these activities of £6,141,000 (2021/22: £4,852,000). Revenues are close to, but still below, those achieved in 2019.

This year all the academic activities of the College were fully restored and there was a greater level of activity for conferences and catering events. The disruption to labour markets and supply chains with a high inflation rate is affecting the College. A persistent high inflation environment will be particularly challenging for all organisations, such as the College, with a relatively fixed cost base and limited opportunities to increase revenues. This may continue for some time.

Balance Sheet

The net tangible assets of the College stood at £154.44 million compared to £149.98 million in 2022. The increase is caused by the rise in investment assets’ capital values and a 15.9% fall in the pension liability under FRS 102.

There was no increase in the level of debt issued by the College. The gearing ratio is 14.9% compared to 15.3% last year. The change in gearing ratio is solely a function of the change in net tangible assets.

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

Main Endowment and Investment Assets

The College, as a long-term investor, has a medium risk appetite for the management of its investments. Risk parameters are agreed with the College’s Fund Managers and the Managers are required to have due regard to a company’s environmental, social and governance record when investing. The College does not hold any fossil fuel investments in direct holdings or funds in which it controls the investment. The College, is a beneficiary of a trust where the holdings are managed by the University as trustee and so the College does not control that investment or the policy applied to it.

The market value of the main Endowment and Investment Assets at 30[th] June 2023 stood at £129.50 million (2021/2022: £136.27 million). This figure includes £7.31 million of cash donations and other monies for operational property investment and other restricted expendable donations of £2.52 million; when this is excluded the investment assets stand at £119.67 million (2021/22: £115.31 million). The College has now deployed fully the proceeds from its £15 million private placement in new operational assets (2021/22: £8.98 million unutilised).

Year ended 30th June
Closing position previous years
Endowment & Investment Assets
New Endowments & unspent
Endowment Income from previous
year invested
Opening Position
Closing Position Endowment &
Investment Assets
Investment Income Received
Gains (Losses)
Total Return		 2023
£mn
2022
£mn
2021
£mn
2020
£mn
2019
£mn
115.31
112.01
93.32
91.23
89.46
1.38
4.51
4.11
11.59
1.62
116.69
116.52
97.43
102.82
91.08
119.67
115.31
112.01
93.23
91.23
3.21
3.20
2.92
3.68
2.04
2.98
(0.93)
14.42
(9.50)
0.15
6.19
2.27
17.34
(5.82)
2.19

The portfolio was invested in Global Equities, including Carbon Free holdings, (35%), residential property and agricultural estates (27%), cash (2%), UK gilts (6%), Multi-Asset Funds which have a significant exposure to quoted equities, including holdings in the Cambridge University Endowment Fund, (16%) and the balance in the recognised alternative asset class of private equity. It should be noted that the private equity investments are shown at managers’ estimated value on a “marked to market” basis.

During the year the College has continued to increase its holding in ESG funds and has invested in key themes for the future, including clean energy, healthcare, automation, and digital intelligence. It will continue to rebalance the portfolio in future years away from purely geographic allocations to “thematics” with a long-term horizon. It should be noted that with the College’s stance on fossil fuel, the returns the College receives at times when there is a significant market shock leading to higher oil and gas prices will be lower than those achieved by other investors with such holdings. The College is aware of this but as a long-term investor it accepts these short-term impacts will occur without invalidating the College approach.

The College now undertakes an ESG analysis of its quoted holdings representing 50% of its total portfolio, relying on data provided by Morningstar and Sustainalytics, as a means of tracking the effectiveness of its investment policies regarding ESG. At the year end, this part of the portfolio had a sustainability rating of

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

4.3 out of a possible 5.0 (2021/22: 3.8 out of a possible 5.0). This type of analysis is still evolving, and the College will continue to address this issue over time and seek improvements. In due course, it will apply this analysis to all its non-property holdings.

The College’s direct investment property assets have been re-valued during the year.

The total recorded return on the investment assets in the year was 5.3% (2021/2022: 1.95%). The Total Return policy of the College has been described above.

The College takes a long-term view of the investment portfolio and attempts to protect its value in real terms and, as a result, to strike an equitable balance between the interests of the present members of the College and future generations. Any new donations or bequests received during the year are added to Unrestricted Funds, unless the donor has made it clear that the funds are to be spent on a particular project.

Future Capital Projects

In 2023/2024 the College will continue with capital expenditure which is deemed to be critical for the maintenance of the estate and investment for the future.

Long Term Debt Issue

The significant projects in 2014 and 2015 were funded, as previously reported, using the proceeds of an unsecured long-term debt issue in which the College participated with 18 other Colleges. The College’s share of the issue was £8 million, with an average life of 34 years, at an effective rate of 4.42% per annum fixed for the duration of the loan. Although issued through a funding vehicle, the College has no responsibility for the obligations of any other of the issuing Colleges. This issue was a good example of the Cambridge Colleges working well together for a common purpose.

In January 2018, the College raised a further £15 million through a private placement. This is unsecured, at a fixed rate of interest of 2.62% per annum with repayment in one amount after 40 years. This fixed rate funding will be used to invest in further operational assets for the College to house more of its Postgraduate students and to eradicate some historic anomalies in the provision of Undergraduate accommodation. Originally raised to finance a joint venture with the University, from which the University withdrew, the College has utilised the remaining undeployed balance of the issue (£9,840,000) to acquire revenue generating operational properties within the City of Cambridge.

The issued debt has a gearing covenant (maximum 50% of net tangible assets) and a negative pledge. The College is comfortably within its covenants. This debt appears as a long-term liability on the balance sheet.

The College, as a perpetual institution, must plan effectively for repayment of the three issues of long-term debt. To this end the College had a plan to purchase almost matching gilt issues for the various maturity dates of the different tranches. These gilts are to be held to maturity in the investment portfolio and will be used to affect the repayment. The disruption to the Gilts market in September and October 2022, where the price of the relevant gilts fell significantly, provided an opportunity to purchase gilts at sensible prices in furtherance of this strategy. The total nominal value of the gilts held by the College represents 45% of the debt issued as at 30[th] June 2023.

Post the year-end further purchases of the longest dated gilt (1.75% 2057) were made as there was a fall in the price of the relevant gilt and the nominal of gilts held for this purpose now stands at 64% of the total issued debt.

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

Pension Funds

The College participates in two pension schemes detailed below.

The College’s academic staff are members of the Universities Superannuation Scheme and the issues and challenges facing this Scheme, and the College’s staff who are members of it, have been well publicised. The effect of the FRS102 adjustment in respect of this Scheme, following completion of the latest valuations, in the Income and Expenditure Account this year is a debit of £10,000 (2021/2022: £631,000 debit).

The Cambridge Colleges Federated Pension Scheme (CCFPS), a pension scheme exclusively for nonacademic staff, has its full liability recorded in the balance sheet under FRS102. The deficit shown this year has declined by £466,000 (2021/2022: £6,107,000 reduction). The decrease in the deficit is driven principally by a higher discount rate used to calculate the present value of the scheme’s liabilities. There is also a positive impact in the staff costs shown in the Income and Expenditure account of £299,000 (2020/2021: -£374,000) arising from FRS102. The College is currently reducing its pension liability under the scheme with additional contributions over an eleven-year period.

The effect of the above changes in respect of both Schemes is a positive balance sheet movement of £0.76 million (2021/2022: £5.10 million positive).

Reserves Policy

The Governing Body, in approving these accounts, has adopted the reserves policy and target reserves as detailed below.

The reserves policy ensures that the College has sufficient financial resources to continue, but also constrains the extent to which reserves are built up from operating surpluses to help maintain intergenerational equity and balance the needs of current and future students.

Free reserves represent the unrestricted general funds of the College. The calculation involves analysis of the composition of the total reserves shown in the Balance Sheet, after adding back any provisions for pension liabilities. The following categories are excluded: Special Trust Funds, permanent restricted endowment, restricted funds and fixed and heritage assets. Net free reserves are after deducting the provision for pension liabilities.

Total Reserves
Total Reserves
(including Pension Provision)
Less: Restricted Reserves
Less: Fixed & Heritage Assets
Free Reserves
Less: Pension Provision
Net Free Reserves		 2023
£mn
2022
£mn
2021
£mn
2020
£mn
2019
£mn
158.5
154.7
152.9
127.2
132.7
97.4
93.2
91.2
69.8
69.3
50.3
40.9
39.5
38.0
38.3
10.8
20.6
22.2
19.4
25.1
4.0
4.8
9.9
11.3
9.2
6.8
15.8
12.3
8.1
15.9

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QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

The College’s target reserves are as follows:

Reserve Target Reserve Rationale
Contingency
Income & Expenditure		 £8.99 million Contingency to cover extreme/unexpected shortfall in
income or additional extreme/unexpected expenditure –
equivalent to 18 months accommodation conference and
catering income being the average of the last three non-
pandemic years
Emergency Building
Repair Contingency		 £2.52 million To fund unexpected urgent repairs to buildings in the estate
e.g. roof failures, etc. equivalent to 5% of buildings as fixed
assets
Total £11.51 million

As of 30[th] June 2023, the College’s free reserves were £6.8 million (2021/22 £15.8 million) compared with a target reserve of £11.51 million (2021/22: £10.75 million). The movement is almost entirely due to the acquisition of the significant additional operational property in Cambridge increasing the value of operational properties in the balance sheet, together with the increase in restricted reserves while unrestricted reserves were stable.

The significant factor which will affect future reserves is the continuing aftermath of the pandemic, the war in Ukraine, the disruptions caused to supply chains, rising interest rates, and the prevailing high inflationary environment, particularly in respect of its operations and the financial and other markets in which the College has invested. This level of reserves, while below the target, enables the College to consider carefully and react appropriately in the event of further, unforeseen extreme circumstances or a significant prolongation of the economic volatility.

The College is focusing on maximising unrestricted income and unrestricted donations, managing costs, effective use of restrictive income from Special Trust Funds, permanent restricted endowment and other restricted funds, and investing in the endowment and investment assets in order to recover from the impact of the last three years and rebuild and enhance its free reserves.

The College needs to maintain and enhance its unrestricted reserves as it is one of the measures of its relative financial strength in terms of its pension obligations as well as for its external funders. The Governing Body will keep the reserves policy under review and consider the need for further specific reserves from time to time as circumstances change.

Scenario Planning

With the advent of the Covid 19 pandemic, the college introduced a four-year scenario planning exercise. This continues to be used and is now an integral part of the College’s approach to managing its financial and other risks.

The Governing Body has considered carefully the possible continuing impact of the aftermath of the Covid19, the high inflation environment and the possible disruptions to supply from the war in Ukraine and other

26

QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

factors, both international and domestic, on the College’s finances in the new financial year and beyond. At meetings in June 2023, it considered a base case scenario of normal academic activities and a continuing, gradual recovery in external revenue from conference and catering activity with inflation of 8% for this year and then returning to c3% over the period. The College being able to adjust its charges only partially in the early years to meet the change in inflation together with a reduced initial level in donations with a steady improvement thereafter. Investment income rising slowly from the distribution under Total Return policy.

The base case scenario was over a four-year time horizon and showed the College being able to maintain cash generation and return to a surplus over the period. The Governing Body also considered two downside sensitivity analyses, with the severe case assuming significantly higher inflation for longer with limited ability to maintain charges in real terms and a decline in both investment and donation income. The Governing Body also considered the College’s holdings of cash and other liquid assets.

The budget for the new financial year was adopted based on the base case scenario.

Going Concern and Viability

The Governing Body has assessed the viability of the College and its subsidiaries over the duration of the four-year scenario planning exercise. The Governing Body considered and approved the detailed budget for the forthcoming year, and the actions required by it, as part of the review and have concluded there is a reasonable expectation that there are adequate resources, including the strength to operate and meet the liabilities of the College as they fall due, over the period of the assessment and for the foreseeable future.

Principal Risks and Uncertainties

The principal risks and uncertainties that the College faces in the forthcoming year may be briefly summarised:

Although the College has a long-term programme of building renewal and improvement, it is always possible with buildings of the age of the College’s estate that there will be unexpected issues that may arise.

27

QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

The College keeps under review the conditions of the fabric to identify further issues and enable them to be addressed on a timely basis. The College has also

Future Plans

As part of the “Five Pillars” review, the College will also continue to develop plans for raising funds, including to enhance significantly the College’s endowment to enable it to continue achieving its objectives. Currently, the College focuses principally on raising permanent capital funds for fellowships and teaching and funds to augment further support for students the core activity of the College, and unrestricted funds, so the College may continue to invest in the future and strengthen its financial position.

The College is looking to enhance both the resilience and agility of its operating practices, including by being able to deploy staff resources where there is greatest need and maximising the flexibility of our response as circumstances change.

Conclusion

The College’s financial position remains challenging and by no means comfortable; there is a great deal to be done to secure properly the long-term future of the College especially for the continued provision of teaching and research excellence, providing for Postgraduate students and refurbishing and enhancing the historic and other operational buildings.

The College will endeavour to work as efficiently as possible and maintain its resilience within the context of being an academic community. The College will regularly review its position as circumstances unfold, against its projections and its scenario planning model, to ensure it responds appropriately, proportionately and on a timely basis to the situation in which it may find itself. Our Base Case Scenario over the next few years is a return to generating cash and achieving an operating surplus.

In the medium term, the College would hope to increase its endowment from all sources by at least £100 million to £150 million from its current position. The College will also continue to control costs and manage resources to best effect to support its principal objective of providing a first-class education. It is not at all certain that academic fees will be increased adequately to meet the full costs of educating our Undergraduates and, indeed, there is a possibility they may be reduced. The College needs to plan and act accordingly.

28

QUEENS, COLLEGE, CAMBRIDGE ANNUAL REPORT AND FINANCIAL STATEMENTS th FOR THE YEAR ENDED 30 JUNE 2023 There is no doubt that the very challenging environment in which th¢ College has operated in the last year will continue for the foreseeable future as the uncertainties it faces evolve and develop. The College will strive to use ils resources wisely and efficiently in ihese difficult circumstsnces. On beha]f of the Governing Body JL£_ Dr M A El-Erian President Mr J Spence Senior Bursar

QUEENS’ COLLEGE, CAMBRIDGE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

The Governing Body is responsible for preparing the Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards.

The Bursarial Committee has day to day responsibility, under the overall direction of the Governing Body, for ensuring that there is an effective system of internal control and that accounting records are properly kept in accordance with the College’s Statutes. It is required to present audited financial statements for each financial year, prepared in accordance with the Statutes of the University, for approval by the Governing Body which give a true and fair view of the state of affairs of the College and of the surplus or deficit of the College for that period.

In preparing these financial statements, the Governing Body is required to:

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 achieve policy, aims and objectives and to safeguard the assets of the College and prevent and detect fraud and other irregularities.

Any system of internal control, however, is designed to manage rather than eliminate risk and can only provide reasonable, not absolute, assurance against failure to achieve policy aims and objectives and material misstatement or loss.

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

30

QUEENS’ COLLEGE, CAMBRIDGE

INDEPENDENT AUDITORS’ REPORT TO THE GOVERNING BODY

FOR THE YEAR ENDED 30[th] JUNE 2023

Opinion

We have audited the financial statements of Queens’ College (the ‘College) and its subsidiaries (the ‘Group’) for the year ended 30 June 2022 which comprise the Consolidated Statement of Comprehensive Income and Expenditure, the Consolidated Statement of Changes in Reserves, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement and notes to the financial statements, including 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:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The 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.

31

QUEENS’ COLLEGE, CAMBRIDGE

INDEPENDENT AUDITORS’ REPORT TO THE GOVERNING BODY

FOR THE YEAR ENDED 30[th] JUNE 2023

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:

Matters on which we are required to report by exception

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

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

Responsibilities of the Governing Body

As explained more fully in the responsibilities of the Governing Body statement set out on page 28, the Governing Body are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governing Body determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can

32

QUEENS’ COLLEGE, CAMBRIDGE

INDEPENDENT AUDITORS’ REPORT TO THE GOVERNING BODY

FOR THE YEAR ENDED 30[th] JUNE 2023

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:

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

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

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

33

QUEENS’ COLLEGE, CAMBRIDGE

INDEPENDENT AUDITORS’ REPORT TO THE GOVERNING BODY

FOR THE YEAR ENDED 30[th] JUNE 2023

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilties. This description forms part of our auditors’ report.

Use of our report

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

PETERS ELWORTHY & MOORE

Chartered Accountants and Statutory Auditors

Salisbury House Station Road Cambridge CB1 2LA Date: 6 October 2023

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

34

QUEENS’ COLLEGE, CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES

FOR THE YEAR ENDED 30[th] JUNE 2023

Basis of preparation

The financial statements have been prepared in accordance with the provisions of the Statutes of the College and of the University of Cambridge 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 all fee income is spent for educational purposes. The analysis required by the SORP is set out in note 6.

Basis of accounting

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

Basis of consolidation

The consolidated financial statements include the College and its subsidiary undertakings. Details of the subsidiary undertakings included are set out in note 16. Intra-group balances are eliminated on consolidation.

A separate balance sheet and related notes for the College are not included in the accounts because the College's subsidiary company is a conference and banqueting trading company which donates its profits to the College each year. The balance sheet for the College alone would not be materially different to the one included in the accounts.

Recognition of income

Academic fees

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

Grant income

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

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

Donations and endowments

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

Donations and endowments with restrictions are classified as restricted reserves with additional disclosure provided within the notes to the accounts.

35

QUEENS’ COLLEGE, CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES

FOR THE YEAR ENDED 30[th] JUNE 2023

Donations and endowments (continued)

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

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

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

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

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

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

Investment income and change in value of investment assets

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

Other income

Income is received from a range of activities including accommodation, catering conferences, job retention scheme grant income and other services rendered.

Cambridge Bursary Scheme

In 2022-2023, payment of the Cambridge Bursaries to eligible students was made directly by the Student Loans Company (SLC). As a consequence, Cambridge University reimbursed the SLC for the full amount and each College paid their portion (based on their own eligible students) to the University.

The net payment of £203,457 is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows:

Income (see note 1) £106,858 Expenditure £310,315

Foreign currency translation

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

36

QUEENS’ COLLEGE, CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 30[th] JUNE 2023

Fixed assets

Land and buildings

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

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

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

Freehold land is not depreciated as it is considered to have an indefinite useful life. Freehold buildings are depreciated on a straight line basis over their expected useful economic lives of 25-50 years.

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

The cost of additions to operational property shown in the balance sheet includes the cost of land. All other assets are capitalised and depreciated over their expected useful life as follows:

Furniture and fittings 10% per annum Motor vehicles and general equipment 20% per annum Computer equipment 33.33% per annum

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[st] 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 investments are included in the balance sheet at fair value, except for investments in subsidiary undertakings which are stated in the College’s balance sheet at cost and eliminated on consolidation.

Stocks

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

Provisions

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

37

QUEENS’ COLLEGE, CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 30[th] JUNE 2023

Contingent liabilities and assets

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

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

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

Financial instruments

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

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

Financial assets

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

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

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

Statement of Principal Accounting Policies

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.

38

QUEENS’ COLLEGE, CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 30[th] JUNE 2023

Statement of Principal Accounting Policies

Financial Instruments (continued)

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

Financial Liabilities

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

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

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

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

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

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

Taxation

The College is a registered charity (number 1137495) 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 GII of the University of Cambridge. Contribution is used to fund grants to colleges from the Colleges Fund. The liability for the year

39

QUEENS’ COLLEGE, CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 30[th] JUNE 2023

as advised to the College by the University is based on an assessable amount derived from the value of the College’s assets as at the end of the previous financial year.

Pension costs

The College participates in two funded defined benefit pension schemes, Cambridge Colleges Federated Pension Scheme (CCFPS) and the Universities Superannuation Scheme (USS)

Pension costs are accounted for on the basis of charging the cost of providing pensions over the period during which the College benefits from the Fellows’ or employees’ services.

Universities Superannuation Scheme (USS)

Throughout the current and preceding periods, the Universities Superannuation Scheme was a defined benefit only pension scheme until 31[st] March 2016 which was contracted out of the State Second Pension (S2P). The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the scheme’s assets are not hypothecated 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 and therefore, as required by Section 28 of FRS102 “Employee benefits”, accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period. 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 College also recognises a liability for the contributions payable that arise from the agreement to the extent that they relate to the deficit and the resulting expense in the income and expenditure account.

Cambridge Colleges Federated Pension Scheme (CCFPS)

The College participates in the Cambridge Colleges Federated Pension Scheme (CCFPS), a defined benefit scheme which is externally funded and until 31[st] March 2016 was contracted out of the State Second Pension (S2P). As CCFPS is a federated scheme and the College is able to identify its share of the underlying assets and liabilities, the College values the fund as required by Section 28 Employee Benefits of FRS102 ‘Retirement Benefits’. As a result, the amount charged to the Statement of Comprehensive Income and Expenditure represents the amount calculated under FRS102 guidelines.

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.

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.

40

QUEENS’ COLLEGE, CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 30[th] JUNE 2023

Critical Accounting Estimates and Judgements

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

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

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

Useful lives of property, plant, and equipment – Property, plant and equipment represent a significant proportion of the College’s total assets. Therefore, the estimated useful lives can have a significant impact on the depreciation charged and the College’s reported performance. Useful lives are determined at the time the asset is acquired and reviewed regularly for appropriateness. The lives are based on historical experiences with similar assets, Professional advice and anticipation of future events. Details of the carrying values of property, plant and equipment are shown in page 50.

Investment property – Properties are revalued to their fair value at the reporting date by Carter Jonas and Bidwells. The valuation is based on the assumptions and judgements which are impacted by a variety of factors including market and other economic conditions.

Retirement benefit obligations – The cost of defined benefit pension plans are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long-term nature of these plans, such estimates are subject to significant uncertainty. Further details are given in pages 59-64.

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

As the College is contractually bound to make deficit recovery payments to USS, this is recognised as a liability on the balance sheet. The provision is currently based on the USS deficit recovery plan agreed after the 2018 actuarial valuation, which defines the deficit payment required as a percentage of future salaries until 2021. 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 pages 59 - 64.

41

QUEENS' COLLEGE, CAMBRIDGE

Consolidated Statement of Comprehensive Income and Expenditure

FOR THE YEAR TO 30 JUNE 2023

Note
INCOME
Academic fees & charges
1
Accommodation, catering and conferences
2
Endowment and investment income
3
Endowment return transferred to I&E account
3a
Other income
Total income before donations and endowments
Donations
Deferred Capital write back
New endowments
Capital grants from colleges fund
Other capital grants for assets
Total income
EXPENDITURE
Education
4
Accommodation, catering and conferences
5
Other expenditure
Contribution under Statute G, II
Total expenditure
6
Surplus (deficit) before other gains and losses
Gains(loss) on disposal of fixed assets
8
Gains(loss) on investments
9
Surplus (deficit) for the year
Other comprehensive income
Unrealised surplus on revaluation of fixed assets
Actuarial gain(loss) in respect of pension schemes
15
Total comprehensive income for the year		 Unrestricted
Restricted
Endowment
Total
Unrestricted
Restricted
Endowment
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000

4,678
4,678
4,530
4,530
6,141
6,141
4,852
4,852
408
277
2,528
3,213
1,350
1,249
602
3,201
1,821
999
(2,820)
0
148
148
128
128
2021-22
2022-23
13,195
1,276
(292)
14,180
10,860
1,249
602
12,711
2,406
2,186
4,592
3,145
1,316
4,462
0
0
0
1,072
1,072
0
1,383
1,383
0
0
0
0
0
0
15,601
3,462
780
19,843
14,005
2,565
1,985
18,555
7,436
1,247
602
9,285
7,044
1,249
602
8,895
8,364
8,364
6,922
6,922
1,389
193
1,582
948
948
39
39
36
36
17,228
1,440
602
19,270
14,949
1,249
602
16,801
(1,627)
2,022
178
573
(944)
1,316
1,383
1,754
446
446
0
0
899
202
1,875
2,977
(178)
(73)
(681)
(932)
(282)
2,224
2,053
3,995
(1,122)
1,243
702
823
0
0
0
0
466
466
6,107
6,107
184
2,224
2,053
4,461
4,985
1,243
702
6,930

The notes on pages 46 to 64 form part of these accounts

42

QUEENS' COLLEGE, CAMBRIDGE

Statement of Changes in Reserves Year Ended 30th June 2023

Balance at 1 July 2022
Opening balance
Change of Fund Classification
Surplus/(Deficit) from income and expenditure statement
Other comprehensive income
Release of restricted capital funds spent in year
Balance at 30th June 2023
Balance at 1 July 2021
Opening balance
Change of Fund Classification
Surplus/(Deficit) from income and expenditure statement
Other comprehensive income
Release of restricted capital funds spent in year
Balance at 30th June 2022		 Unrestricted
Restricted
Endowment
£'000
£'000
£'000
56,820
23,084
70,075
0
0
0
(282)
2,224
2,053
466
0
0
0
0
0
57,004
25,308
72,128
Unrestricted
Restricted
Endowment
£'000
£'000
£'000
51,835
21,841
69,373
0
0
0
(1,122)
1,243
702
6,107
0
0
0
0
0
56,820
23,084
70,075
Income and expenditure reserve
Income and expenditure reserve		 Total
£'000
149,979
0
3,995
466
0
154,440
Total
£'000
143,050
0
823
6,107
0
149,979

The notes on pages 46 to 64 form part of these accounts

43

QUEENS, COLLEGE. CAMBRIDGE CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2023 Note 2023 Croup 2022 Croup NON CIIRRENT ASSffS Fix¢d ass¢Ls H¢riiage Assets Investsn¢nts 50.345 103 1?9,504 40.902 103 136,267 Total norl-eurrètti ss¢ts Ci1RRENT ASSETS 10 396 2.152 475 433 ,702 455 Trade otherreceivab1¢5 Cash and ¢asb ¢quivalent5 Totsl ¢urrtDt avatts 3.023 2.590 CrtdltDri: ¥mouNts lalling due wlthli ott¢ year 13 1.522 Total kntts less turrtml li#bilitie5 181.452 177.747 Crtditors.. fxllillg dut afttr rnort thn ollt year 14 123.0001 123.0001 ProvisioDS Pension provjsjoThs Oth¢rprosisioll5 14.7671 Toial Mrt A$5tts 154.mo 149.979 Rt5tri¢ied regervts lrtcome and ¢xpenditure Teserve<ndoknmeni Tesenr 72.128 70.075 23.084 lllco]lle and w¢nditUTe ieserve-res¢ri¢trd reserve IITrTt¥triettd Reserve5 Inc4)me and ¢Kpenditute reserv¢.Utsre5tsicted 57.004 56.820 TOTAL KESERTrES 154.440 149.979 Thè note5 on pages 48 to 64 fomi part of thè58 accounts These accounts were appTov¢d by th¢ Goven]iDg Body on Friday 29th.8ept¢mber, 2023 and signed on their beknlt'by Dr M A F.l-Ena President _IL< Jonathan Sr£n¢¢ Senior Bursar

QUEENS' COLLEGE, CAMBRIDGE

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 JUNE 2023

2023 2022
Note £'000 £'000
Net cash inflow from operating activities 20 (416) 3,568
Cash flows from investing activities 21 1,184 (2,573)
Cash flows from financing activities 22 (747) (747)
Increase/(decrease) in cash equivalents in the year 20 248
Cash and cash equivalents at beginning of the year 455 207
Cash and cash equivalents at end of the year 12 475 455

The notes on pages 46 to 64 form part of these accounts

45

QUEENS' COLLEGE, CAMBRIDGE NOTES TO FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

1 Academic fees and charges
Fee income received at the Graduate rate
Other Income
2
Accommodation:
College members
Conferences and banquets
Catering:
College members
Conferences and banquets
Total
3
3a
Actual Income from:
Land and buildings
Quoted securities
Fixed interest securities
Other interest receivable
Total
3b Analysis of investment gains
Land and buildings
(Losses)/Gains on other assets
Total
3c Summary of Total Return
Actual Income from:
Land and buildings
Quoted securities
Fixed interest securities
Other interest receivable
Total
(Losses)/Gains on endowment assets (see note 3b)
Total return for year
Total return transferred to income & expenditure reserve
Unapplied total return for the year included within
Statement of Comprehensive Income and
Expenditure (note 19)
Fee income received at the Regulated undergraduate rate
Income from accommodation, catering and conferences
Income from short-term investments
Analysis
Endowment and investment income
Income from short-term investments
(Losses)/Gains on endowment assets
Quoted and other securities and cash
Investment management costs
Fee income received at the Unregulated undergraduate rate
Quoted and other securities and cash		 2023
£000
2,629
199
1,743
107









2023
£000
667
1,910
0
129
508		 2022
£000
2,582
206
1,595
146
4,678 4,530
3,813
515
1,096
718		 3,651
167
780
254
6,141 4,852
2022
£000

494

2,072

16

46

573
3,213
3,201
2023
£000
363
2,632		 2022
£000

1,115

(1,795)
2,995
(680)
(18)
(252)
2,977
(932)
667
1,356
0
129
377
2,528
2,977
(274)
5,231
(2,820)
2,411

46

3b Investment management costs
Land and buildings
Quoted securities - equities
Fixed interest securities
Other investments
Cash
Total
4
Teaching
Tutorial
Admissions
Research
Total
5
Accommodation:
Catering:
Total
Conferences and banquets
Accommodation, catering and conferences expenditure
College members
Conferences and banquets
Other educational facilities
College members
Education expenditure
Scholarships and awards		 2023
2022
£000
£000
(195)
(169)
(79)
(88)
0
0
0
0
0
0
(274)
(257)
2023
2022
£000
£000
4,213
4,397
1,962
1,810
798
576
284
401
1,165
930
864
781
9,285
8,895
2023
2022
£000
£000
5,635
5,111
740
232
1,394
1,241
595
338
8,364
6,922

47

QUEENS' COLLEGE, CAMBRIDGE NOTES TO FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

6a Analysis of 2022/2023 expenditure by activity

Education
Accommodation, catering and conferences
Other		 Staff costs
Other
Depreciation
Total
(note 7)
operating
expenses
£000
£000
£000
£000
4,850
3,687
941
9,478
3,377
3,157
1,831
8,364
495
933
0
1,428
8,722
7,777
2,772
19,270

Expenditure includes fundraising costs of £452,993 and £267,268 on alumni relations.

6b Analysis of 2021/2022 expenditure by activity

Education
Accommodation, catering and conferences
Other		 Staff costs
Other
Depreciation
Total
(note 7)
operating
expenses
£000
£000
£000
£000
5,002
3,095
799
8,895
3,107
2,179
1,636
6,922
417
567
0
984
8,525
5,841
2,434
16,801

Expenditure includes fundraising costs of £368,193 and £211,298 on alumni relations.

6c Auditors' remuneration
Auditors' remuneration 2023 2022
£000 £000
Other operating expenses include:
Audit fees payable to the College's external auditors 43 38
Other fees payable to the College's external auditors 0 0

48

QUEENS' COLLEGE, CAMBRIDGE NOTES TO FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

7 Staff costs

EENS' COLLEGE, CAMBRIDGE
TES TO FINANCIAL STATEMENTS
AR ENDED 30 JUNE 2023
Staff costs
Consolidated
Staff Costs:
Emoluments
Social security
Pension
Academic
Non-academic		 Academic
Non- academic
Total
Total
2023
2022
£000
£000
£000
£000
2,256
5,424
7,680
5,900
190
311
502
492
350
190
540
2,133
2,796
5,926
8,722
8,525
Number of
Fellows
Full-time
equivalents
Number of
Fellows
Full-time
equivalents
55
60
147.75
111
Average staff numbers 2023
Average staff numbers 2022

At the Balance Sheet date there were 63 members of the Governing Body. During the year the average number receiving remuneration was the 55 shown above.

The number of officers and employees of the College, including Head of House, who received remuneration in the The number of officers and employees of the College, including Head of House, who received remuneration in the
following ranges was 2023 2022
£100,001 - £110,000 1 1
£110,001 - £120,000 1 2
£120,001 - £130,000 0 2
£130,001 - £140,000 2 1
£140,001 - £150,000 3 0

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

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College.

The aggregated remuneration paid to key management personnel consists of salary, employer's national insurance contributions, employer's pension contributions, plus any taxable benefits either paid, payable or provided, gross of any salary sacrifice arrangements. The President, Senior Bursar, and Senior Tutor are the College's key management personnel.

Key management personnel aggregated remuneration

Total Total
2023 2022
£'000 £'000
434 389

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

49

QUEENS' COLLEGE, CAMBRIDGE NOTES TO FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

8 Fixed assets

EENS' COLLEGE, CAMBRIDGE
TES TO FINANCIAL STATEMENTS
AR ENDED 30 JUNE 2023
Fixed assets
Cost or valuation
At beginning of year
Additions at cost
Revaluation of assets
Transfer between classes
Disposals
At end of year
Depreciation
At beginning of year
Charge for the year
Eliminated on Disposal
Eliminated on Transfer
Written back on revaluation
At end of year
NET BOOK VALUE
At end of year
At beginning of year		 2023
2022
Land and
buildings
Assets in
construction
Equipment
Heritage
Assets
Total
Total
£000
£000
£000
£000
£000
£000
60,590
1,162
2,454
103
64,308
62,518
12,367
1,434
794
0
14,594
3,848
0
0
0
0
0
0
1,060
(1,060)
0
0
0
0
(2,626)
0
(835)
0
(3,461)
(2,058)
71,390
1,535
2,413
103
75,441
64,308
21,978
0
1,327
0
23,304
22,927
2,252
0
520
0
2,772
2,434
0
0
(835)
0
(835)
(2,058)
(247)
0
0
0
(247)
0
0
0
0
0
0
0
23,983
0
1,012
0
24,994
23,304
`
47,407
1,535
1,402
103
50,447
41,004
38,612
1,162
1,128
103
41,004
39,591

The insured value of freehold land and buildings as at 30 June 2023 was £203m (2022: £182m).

50

QUEENS' COLLEGE, CAMBRIDGE NOTES TO FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

8 Tangible fixed assets (continued)

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 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 the cost or valuation are not available for these on a cost-benefit basis, they have not been capitalised. As a result the total included in the balance sheet is partial.

Amounts for the current and previous years were as follows:

Acquisitions purchased with specific
donations
Acquisitions purchased with College funds
Total cost of acquisitions purchased
Value of acquisitions by donation
Total acquisitions capitalised		 2023
2022
2021
2020
2019
£000
£000
£000
£000
£000
0
0
0
0
0
0
0
0
0
88
0
0
0
0
88
0
0
0
0
0
0
0
0
0
88

9 Fixed asset investments

Balance at beginning of year
Additions
Tranfered from fixed assets
Disposals
Less: impairment on unquoted securities
Gain/(loss)
Balance at end of year
Represented by:
Property
Quoted securities – equities
Fixed interest securities
Other investments
Cash in hand & at investment managers
Total		 2023
2022
Total
Total
£000
£000
136,267
73,791
2,825
(86,355)
0
2,977
135,271
56,183
0
(54,256)
0
(932)
129,504
136,267
31,807
26,077
52,085
58,799
7,569
1,523
22,515
21,203
15,528
28,665
129,504
136,267

51

QUEENS' COLLEGE, CAMBRIDGE NOTES TO FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

10 Stocks and work in progress

Goods for resale
Work in progress
Other Stocks
11 Trade and other receivables
Members of the College
Other receivables
Prepayments and accrued income
12
Bank deposits
Current accounts
Cash in hand
13 Creditors: amounts falling due within one
year
Trade creditors
Members of the College
Receipts in advance
University Fees
Contribution to Colleges Fund
Accruals and deferred income
Other creditors
Amounts due from subsidiary undertakings
Cash and cash equivalents
Short-term money market investments
Amounts due to subsidiary undertakings		 2023
2022
£000
£000
396
433
0
0
0
0
396
433
2023
2022
£000
£000
15
32
0
0
1,969
1,502
168
168
2,152
1,702
2023
2022
£000
£000
526
448
(51)
7
475
455
2023
2022
£000
£000
820
1,240
326
324
0
0
266
444
71
71
39
36
1,522
2,114

14 Long term loans

During 2013-14, the College borrowed from instutional investors, collectively with other Colleges, the College's share being £8 million. The Loans are unsecured and repayable during the period 2043-2053, and are at fixed interest rates of approximately 4.42%. The College has agreed a financial covenant of the ratio of Borrowings to Net Assets, and has been in compliance with the covenant at all times since incurring the debt.

During the course of 2017-2018, the College rasied a further £15 million of unsecured debt from institutional investors at a fixed rate of interest of 2.62% per annum. Repayment is due in one amount a the end of 40 years. There is an agreed covenant in respect of the borrowings which the College has been in compliance with.

52

QUEENS' COLLEGE, CAMBRIDGE NOTES TO FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

15 Pension provisions
CCFPS
Balance at beginning of year
Movement in year:
Current service costs including life assurance
Contributions
Other finance cost
Balance at end of year
USS
Balance at beginning of year
Current service costs including life assurance
Contributions
Other finance cost
Balance at end of year
Actuarial loss/(gain) recognised in Statement of
Comprehensive Income and Expenditure		 2023
2022
£000
£000
3,568
9,301
935
1,478
(1,234)
(1,104)
0
0
(466)
(6,107)
2,803
3,568
1,199
568
65
654
(96)
(29)
40
5
1,208
1,199

16 Principal subsidiary undertakings

The College owns 100% of the ordinary share capital of QC Enterprises Limited, a company incorporated in England. The principal activity of the company is the provision of conference and banqueting services at the College.

17 Endowment funds

Restricted net assets relating to endowments are as follows:

Balance at beginning of year
Capital
New Donations and endowments
Increase/(decrease) in market value of
investments
Balance at end of year
Analysis by type of purpose
Fellowship funds
Scholarship funds
Prize Funds
Hardship funds
Bursary funds
Travel grant funds
Other funds
General
Analysis by asset
Property
Investments
Cash		 2023
2022
Total
Total
£000
£000
£000
£000
40,260
29,815
70,075
69,373
1,051
21
1,072
1,383
1,046
(65)
981
(681)
Restricted
permanent
endowments
Unrestricted
permanent
endowments
42,358
29,770
72,128
70,075
30,038
0
30,038
28,315
4,746
0
4,746
4,610
0
0
0
0
133
0
133
129
5,115
0
5,115
4,956
453
0
453
438
149
0
149
144
1,723
29,770
31,493
31,481
42,358
29,770
72,128
70,075
6,751
4,745
11,497
11,169
33,194
23,330
56,524
54,915
2,412
1,695
4,108
3,991

53

QUEENS' COLLEGE, CAMBRIDGE NOTES TO FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

18 Restricted Reserves

Reserves with restrictions are as follows:

Permanent Permanent
unspent and Restricted
Capital grants other restricted expendable 2023 2022
unspent income endowment Total Total
£000 £000 £000 £000 £000
Balance at beginning of year 0 2,328 20,756 23,084 21,841
Capital 0 0 20,314 20,314 19,157
Accumulated income 0 2,328 441 2,770 2,684
Change of Fund Classification 0 0 0 0 0
New grants 0 0 0 0 0
New donations 0 0 2,186 2,186 1,316
Endowment return transferred 0 838 162 999 906
Other investment income 0 277 0 277 343
Increase/(decrease) in market value of
investments 0 0 202 202 (73)
Expenditure 0 (837) (603) (1,440) (1,249)
Capital grants utilised 0 0 0 0 0
Balance at end of year 0 2,606 22,702 25,308 23,084
capital 0 0 22,215 22,215 20,314
Accumulated income 0 2,606 487 3,093 2,770
Analysis of other restricted
funds/donations by type of purpose
Fellowship funds 0 2,044 1,068 3,113 2,851
Scholarship funds 0 151 601 752 713
Prize Funds 0 0 0 0 0
Hardship funds 0 (7) 1,582 1,575 1,497
Bursary funds 0 330 669 1,000 943
Travel grant funds 0 41 36 76 72
Other funds 0 41 18,462 18,503 16,735
General 0 6 283 289 274

19 Memorandum of Unapplied Total Return

Within the reserves representing investments held by the College, the following are the cumulative surpluses of total return on the main investment portfolio

Memorandum of Unapplied Total Return
Within the reserves representing investments held by the College, the
following are the cumulative surpluses of total return on the main
investment portfolio
Unapplied Total Return at start of year
Surplus of total return for year (note 3)
Unapplied total return at end of year		 2023
2022
£000
£000
32,679
32,679
2,411
0
35,090
32,679

54

QUEENS' COLLEGE, CAMBRIDGE NOTES TO FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

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

Reconciliation of consolidated surplus for the year to net cash inflow from operating activities
2023 2022
£000 £000
Surplus/(deficit) for the year 3,995 823
Adjustment for non-cash items
Depreciation 8 2,772 2,434
Loss/(gain) on endowments, donations and investment property 17 (2,977) 932
Decrease/(increase) in stocks 10 37 3
Decrease/(increase) in trade and other receivables 11 (450) 459
Increase/(decrease) in creditors 13 (592) 367
Increase/(decrease in provisions 0 0
Pension costs less contributions payable 15 (290) 1,005
Loss/(gain) on sale of property (446) 0
Adjustment for investing or financing activities
Investment income (3,213) (3,201)
Interest payable 747 747
Net cash inflow from operating activities (416) 3,568

55

QUEENS' COLLEGE, CAMBRIDGE NOTES TO FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

21 Cash flows from investing activities

QUEENS' COLLEGE, CAMBRIDGE
NOTES TO FINANCIAL STATEMENTS
YEAR ENDED 30 JUNE 2023
21 Cash flows from investing activities
Proceeds from the sales of non-current fixed assets
Non-current investment disposal
Investment income
Endowment funds invested
Withdrawal of deposits
Payments made to acquire non-current assets
Total cash flows from investing activities
22 Cash flows from financing activities
Interest paid
Interest element of finance rental payment
New unsecured loans
Repayments of amounts borrowed
Capital element of finance lease rental payment
Total cash flows from financing activities
23 Capital commitments
Capital commitments at 30 June 2023 are as follows:
Authorised and contracted
Authorised but not yet contracted for		 2023
2022
£000
£000
0
0
86,355
54,256
3,213
3,201
0
0
0
0
(88,385)
(60,031)
1,184
(2,573)
2023
2022
£000
£000
(747)
(747)
0
0
0
0
0
0
0
0
(747)
(747)
2023
2022
£000
£000
0
1,600
0
2,150

56

QUEENS' COLLEGE, CAMBRIDGE NOTES TO FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

24 Consolidated reconciliation and analysis of net debt

Other
At 1 July Cash non-cash At 30 June
2022 Flows changes 2023
£000 £000 £000 £000
Cash and cash equivalents 455 20 475
Borrowings:
Amounts falling due after more than one
year
Unsecured loans (23,000) (23,000)
Total net debt (22,545) 20 0 (22,525)
**25 ** Financial Instruments 2023 2022
£000 £000
Financial assets
Financial assets at fair value through Statement of Comprehensive income
Listed equity investments 59,654 58,799
Other investments 54,322 38,580
Financial assets that are debt instruments measured at amortised cost
Cash and cash equivalents 16,003 30,188
Other debtors 1,984 1,534
Financial liabilities
Financial liabilities measured at amortised cost
Loans 23,000 23,000
Trade creditors 820 1,357
Other creditors 702 431

57

QUEENS' COLLEGE, CAMBRIDGE NOTES TO FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2023

26 Related Party Transactions

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

The College maintains a Register of Interest for all Fellows and College employees with spending authority. It is updated every six months and during the year to 30th June 2023 it reveals that no material events occurred.

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

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

The College continues it's investment in joint equity properties with 1 College Fellow (1 Fellow in 2023). The total investment by the College amounted to £147,175 (2022 £147,175).

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

From
To
£0
£10,000
£10,001
£20,000
£20,001
£30,000
£30,001
£40,000
£40,001
£50,000
£50,001
£60,000
£60,001
£70,000
£70,001
£80,000
£80,001
£90,000
£90,001
£100,000
£100,001
£110,000
£110,001
£120,000
Total		 2023
2022
20
26
14
16
7
8
2
2
1
0
1
2
2
1
3
1
0
4
1
0
3
1
1
0
55
61

The total Trustee salaries were £1,622,652 for the year (2022: £1,399,918)

The trustees were also paid other taxable benefits (including associated employer National Insurance contributions and employer contributions to pensions) which totalled £51,260 for the year (2022: £52,663)

The College has one trading and one dormant subsidiary undertaking, both of which are consolidated into these accounts. Both subsidiary undertakings are 100% owned by the College and are registered and operating in England and Wales. The College has taken advantage of the exemption within section 33 of FRS 102 not to disclose transactions with wholly owned group companies that are related parties.

58

QUEENS’ COLLEGE, CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 30[th] JUNE 2023

UNIVERSITIES SUPERANNUATION SCHEME

Significant accounting policies

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

Critical accounting judgements

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

PENSION COSTS

The total cost charged to the profit and loss account is £9,067 (2022: £630,803).

Deficit recovery contributions due within one year for the institution are £95,746 (2022: £87,595).

The latest available complete actuarial valuation of the Scheme 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%.

59

QUEENS’ COLLEGE, CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 30[th] JUNE 2023

The key financial assumptions used in the 2020 valuation are described below. More detail is set out in the Statement of Funding Principles:

( uss.co.uk/about-us/valuation-and-funding/statement-of-funding- principles ).

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

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

2020 Valuation

Mortality base table

101% of S2PMA ‘light’ for males and 95% of S3PFA for females.

Future improvements to mortality

CMI 2019 with a smoothing parameter of 7.5, an initial addition of 0.5% pa and a long-term improvement rate of 1.8% pa for males and 1.6% pa for females

The current life expectations on retirement at age 65 are:

The current life expectations on retirement at age 65 are:
2023 2022
Males currently aged 65 (years) 24.0 23.9
Females currently aged 65 (years) 25.6 25.5
Males currently aged 45 (years) 26.0 25.9
Females currently aged 45 (years) 27.4 27.3

A 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:


following assumptions:
2023 2022
Discount rate 5.52% 3.31%
Pensionable salary growth 3.30% 3.33%

60

QUEENS' COLLEGE, CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

CAMBRIDGE COLLEGES FEDERATED PENSION SCHEME

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

The liabilities of the plan have been calculated at 30[th] June 2023 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:

Discount rate
Increase in salaries

RPI assumption
CPI assumption
Pension increased in payment (RPI Max 5% pa)
Pension increases in payment (CPI Max 2.5% pa)		 30th June
2023
5.20%
3.30%
3.40%
2.80%
3.30%
2.05%		 30th June
2022
3.80%
3.25%
3.45%
2.75%
3.30%
2.05%

*For one year only, we have assumed that RPI will be 9% and CPI will be79% (2022: 11% and 9% respectively). 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_2022 future improvement factors and a long-term rate of future improvement of 1.25% per annum, a standard smoothing factor (7.0) and no allowance for additional improvements (2022: S3PA with CMI_2021 future improvement factors and a long-term future improvement rate of 1.25% per annum, a standard smoothing factor (7.0) and no allowance for additional improvements). This results in the following life expectancies:

61

QUEENS’ COLLEGE, CAMBRIDGE

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONTINUED)

FOR THE YEAR ENDED 30[th] JUNE 2023

PENSION SCHEMES (CONTINUED)

The assets in the Scheme and the expected rates of return were:

Long-term
rate of
return
expected at
30/06/2023
Equities and Hedge Funds
Cash, Bonds & Net Current
Assets
Property
Total		 Value at
30/06/2023
Long-term
rate of
return
expected at
30/06/2022
8,843,100
6,857,914
2,346,128
18,047,142		 Value at
30/06/2022
Long-term
rate of
return
expected at
30/06/2021
10,257,694
6,706,954
2,761,687
19,726,335		 Value at
30/06/2021
10,606,207
9,280,431
2,209,626
22,096,264

The following results were measured in accordance with the requirements of FRS102

Total market value of assets
Present value of Scheme liabilities
Surplus/(deficit) in the Scheme		 2023
£
18,047,142
(20,850,393)
(2,803,251)		 2022
£
19,726,335
(23,294,743)
(3,568,408)		 2021
£
22,096,264
(31,397,694)
(9,301,430)

The amounts recognised in income and expenditure are as follows:

In staff costs: Current service cost (net of employee contributions)
In endowment and investment income:
Interest cost
Expected return on pension scheme assets
Net return
Actual return on pension scheme assets		 30th June
2023
£
706,478
893,244
(754,999)
138,245
2,487,142		 30th June
2022
£
1,255,992
572,440
(403,831)
168,609
2,978,166

62

QUEENS' COLLEGE, CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

PENSION SCHEMES (CONTINUED)

Changes in the present value of the plan liabilities are as follows:
Present value of plan liabilities at beginning of period
Current service cost (including employee’s contributions)
Interest on plan liabilities
Actuarial (gains) losses
(Gain)/loss on plan changes
Curtailment (gain)/loss
Benefits paid
Present value of plan liabilities at end of period
Changes in the fair value of scheme assets are as follows:
Market value of plan assets at beginning of year
Contributions by the College
Additional contributions by members (including AVCs)
Benefits (and expenses) paid
Interest on plan assets
Return on assets, less interest included in Prof.it & Loss
Market value of plan assets at end of year		 30th June
2023
30th June
2022
£
£
23,294,743
31,397,694
1,021,287
1,532,171
893,244
572,440
(3,726,587)
(9,498,973)
36,712
0
0
0
(669,006)
(708,589)
20,850,393
23,294,743
30th June
2023
30th June
2022
£
£
19,726,335
22,096,264
1,234,057
1,103,937
314,809
276,179
(740,917)
(771,879)
754,999
403,831
(3,242,141)
(3,381,997)
18,047,142
19,726,335

Amounts for the current and previous four periods are as follows:

Present value of plan
liabilities
Market value of plan assets
Surplus/(deficit)
Experience adjustments on
plan liabilities
Change in assumptions
underlying present value of
plan liabilities		 30th June
2023

£
(20,850,393)
18,047,142
(2,803,251)
2,241,885
(5,949,985)		 30th June
2022
£

(23,294,743)
19,726,335
(3,568,408)
1,108,641
(10,597,748)		 30th June
2021
£
(31,397,694)
22,096,264
(9,301,430)
(459,639)
(416,040)		 30th June
2020
£
(30,798,169)
20,021,557
(10,776,612)
(54,536)
(3,026,582)		 30th June
2019

£
(26,243,731)
17,915,328
(8,328,403)

439,114

(2,878,488)

63

QUEENS' COLLEGE, CAMBRIDGE

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2023

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

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 valuation was at 31[st] March 2020. This showed that the plan’s assets were insufficient to cover the liabilities on the funding basis. A Recovery Plan has been agreed with the College, which commits the College to paying contributions to fund the shortfall.

These deficit reduction contributions are incorporated into the plan’s Schedule of Contributions dated 21[st] May 2021 and are as follows:

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

64