QUEENS, COLLEGE, CAMBRIDGE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th JUNE 2024 QUEENS, COLLEGE, CAMBRIDGE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th JUNE 2024 Colltents Page Reference and Administrative D¢tails Structure, Governance and Management 7-10 Aims and Objectives of the College 10- 11 Public Benefit 12-13 Review of Opcrdtions 14-20 Financial R¢view 21-31 Responsibilities of the Governing Body 32 Lndependent Auditors Report 33-36 Statement of Principal Accounting Policies 37-43 Consolidated Statement of Comprehensive Income & Expenditure 44 Statement of Changes in Reserves 45 Consolidated Balance Sheet 46 Consolidated Cash Flow Statement 47 Notes to the Financial Statements 48-67 otTEENS' COLLEGE. CATrtBRIDGE REFERENCE AND ADMINISTRATIVE DETAILS FOR T￿￿ YEAR EI¥DED 30" JUISE 2024 The full llame of the College is -The Queen s College of St marg￿et and St Bernar& coJnmonlv called Queens. College in the Univetsity of Cambridge" The CollEtre is a eA)rporate body consisting of the PresidenL Fellows 2rLd Scholars. The Governing Body.. which consists of the President and the Fellows. with four student observers. holds at least six meetings eaLh year. The Governing Body met ten times in the year to which this report relates. The PresÉdent, Profess￿la1 Fellows and Official Fellows are the voting members of the Governing Body and, sitLre the Governing Body exercises general control and n￿￿gement of the College. its Voting members are the tru8tee5 of the charity. *President Prof. J C Multh'ew Dr D tndae Dr Lkl A El-Erian Prof. J W P Campbell DTHRNJones Prof. M J DIXO￿ FACSS Dr A C Thompson Prof. J R Gog, OBE Prof. A A Seshia Prof. E M Terentsev Prof. I Sitartdou DT A Zur¢heT Dr A M Rossi Mr J Spence. DL Dr G J Mcshane Prof. M Ethnonds Prof. H J Stone DT J J Maguire DT G M F￿$¢r Dr L S Tiley DT T S Butlin Prof. S J Price Dr E Moyroud Dr D J Butterfield, DT A Paterson DrMEB Tait Dr F I Paddeu MTRMCKitt Kevd T C Harling Dr S Haggarty Prof. C J Bickerton Dr C BrerLdon DT D J Parker Prof. G Denyer Willis Dr E McPhergon Dr C w￿ll]ck Prof. A Beresford Dr G Atktns Prof. A Marsham Dr J Blundell Dr T Denmead Dr P Mcmurray Mi A D Bainbridge Dr T J Eggington Dr J Ga￿180￿ Dr C Pefiasco Paton Dr E Webster Dr S Hdincs Revd A H Jon<8 DT R K Bhagae Dr J Cobbe, Drm Kilkenny DT C Clatk, e-Fellows Prof. A D ChaElinor Prof. R R Weber Prof. G H Tr¢ere Prof. A C Rice Dr R M Faragher Dr J R Bellis DrCHill Dr A C BoT)ner I)r P Bambrougb Dr C Clark Dr L Davies DrJ J8hié Dr C Mishra Dr E Weir Mr N Morris IA. K Hendry Mr M Boase Mr J Perkins Di J Mitchell . D Orctwd Mr C Edsau Dr M Fuchs Dr L MuLlen Dr I Kattr Dr L EsGudero S¥nche£ Dr M Loy, Rtsearch Fell Dr H Symington DrE O'Keeffe I)r K l]ko' Dr J Tsay, ETJJ¢ritus Fellow5 DrAMWGI&ss Prof. J Ru￿ell R'of. A M Gamble DIJWKelly Dr T Forsfrr Life Fellows Prof. A C Spearillcr Dr B A Cailingham Prof. J Diggle, FBA Prof. J E Carroll Revd Dt B L Hebbletknwaite Dr J T Gr¢en Dr W A Phillips Dr R D H Walker DrADCosh PrDf. R R WebeP Pro£ A. N. Hayhurst Prof J Jackson, CBE FRS Dr C J Pountain Prof. R G Fentiman QC Hon Cku5a Prof. Lord Oxburgh. KBB FRS FREllg Revd Dr J M Holmes Dr H J Field Prof. R L Jones Prof. A N L￿ellbY Prof. K F Priest] Dr C N Pit¢iis Prof R L Jones Prof. E A H HalL CBE Dr E G Kahrs Pro£ D R Ward Pro£ J L Scott Prof. LA)rd Eatwell Dr M J Milgate Dr l K Pattersoll Prof. D K Menon CBE *Professorial Fellows Prof. D K Menon. CBE: Prof. R W Pr2ger. FREng Prof. N D L&wrence Prof. L Reisch Prof. J D Brenton ¥Official Fellow8 Prof. R G Fentiman QC Holl Causa, Prof. P H Hayncs, FRS Prof. D Cebon. FREng Prof. A H Gce PTof. J W F Allison of. B J Glov Prof. R A W Rex Prof. C E Bryant, FBPhS. FLSW Pmf. M P V Crowley l To 31 July 2023 To 30 Seplember 2023 - From l October 202J Obit 7 O¢tobcT 202) 5 To J l October 202? From l November 202J 7T0 i l December 2023 ' From i January 2024 * Chattty Trn5t2C5 li QUEENS, COLLEGE, CAMBRIDGE REFERENCE AND ADMINISTII4TIVE DETAJLS FOR THE YEAR ENDED 30" JUNE 2024 Senior Officers President Vice-President Senior Bursar Senior Tutor Dr h4 A El-Erian Professor J R Gog Mr J Spence Dr A C Thompson PRtNCIPAL COIVIMrrTEES Bursarial Committee Education Committee Dr M A E1-Eria￿ President Professor J R Gog. Vice-President Mr J Spence, Senior Bursar Mr A D Bainbridge, Domestic Bursar Dr A C Thornpson, Senior Tutor Mr R M C KitL Development Director Dr G Atkins Professor G Denyer Willis Dr E McPherson Dr E Moyroud Dr F I Paddeu Professor R A W Rex Professor A C Rice Professor I Sitsidou Dr M A El-Eriall President Dr A C Thompso￿ Senior Tutor Dr T Eggington. Librarian Dr S Haines, Admissions Tutor Mr J Spence, Senior Bursar Professor C J Bickerton DrHRNJones Dr M Kilkenny Professor N Lawrence Dr J J MaguiTe Dr M Tait Dr A E Zurcher Representatives of the JCR and MCR Investments Committee Dr M A El-Erian, President Professor J R Go& VictrPresident Mr J Spence. Senior Bursar Professor M J Dixon Professor D Cebon Dr J R Garrison Professor A H Qee Professor R R Weber Mrs A KO￿ling (Queens. Alumna) QUEENS, COLLEGE, CAMBRIDGE REFERENCE AND Al)IlItNISTRATIVE INFOR]￿TIoN FOR THE YEAR ENDED 30tIE JUNK 2024 GOVERNING BODY ATTENDANCE LIST 2023-2024 ON LEAYE 2022-2023: PTof Beverley Glover Prof Alastair Beresford Dr Peter McMutTay Prof Denyer Willis ON LEAVE 2023-2024: Piof Peter Haynes Prof Beverley Glover Prof James Campbell Prof Marie Edmonds Dr Cristina Pefiasco Paton Dr P¢t¢r Mcmurray (Michaelmas 2023) Dr Gillian Fraser (Lent 2024) Prof Martin Crowley (Lent and Easter 2024) Prof Ashwin Sesbia (Lent and Easter 2024) Dr Sarah Haggty (Lent and Easter 2024) Ten Governing Body Meetings took place between l July 202i - 30 June 2024. Fellows, attendance was recorded a5 follows.. Dr M A El-Erian PTof. R G Fentirnan Prof. P H Haynes Prof. D Cebon Prof. R W Prag¢r Prof. A H Gee Prof. J W F Allison Prof. R A W Rex Prof. C E Bryant Prof. M P V Crowley Prof C Muldr¢w Prof. J W P Campbell DrHRNJones Prof. M J Dixon Prof. D K NQenon Dr A C Thompson Prof. J R Gog Prof. A A S&sl]ia Prof. E M Terentiev Prof. I SI￿ldOU Dr A Zurcher Dr A M Rossi Mr J Spence iolio Iii Iii 4110 4110 io/io 8110 9110 10110 314 4110 1/1 9110 7110 0/1 ioiio 8110 314 7110 6110 9110 6110 iolio L)r G J M¢Shane PIof. M Edmonds Prof. H J Stone Dr J J MaguiTe Dr L S Tiley Dr T Butlin Prof. S J Price Dr E Moyroud Dr D J Butterfield Dr A Paterson DrMEB Tait Dr F I Paddeu MrRMCKitt Revd T C Harling Dr S Haggaty Prof. C J Bickerton )r C Brendon t)r D J Parker Prof G Denyer Willis Dr E McPherson Dr C Warnick Prof. A Beresford Dr G Atkins 8110 212 ilio io/io 9110 9110 9110 5110 214 7110 8110 8110 iolio 9110 214 5/10 5110 1/10 519 8110 9/10 719 iolio Prof. A Nlatsham Dr J Blundell Dr T Denmead Dr P Mcmurray Mr A D Bainbridge Dr T J Eggington Dr J Garrison Prof. N D Lawrence Dr C Pefiasco Paton Prof. L Reisch Dr G Fras¢r Dr E Webster Dr S Haines Revd A H Joneg Prof. J D Brenton Dr R K Bhagat Dr J Cobbe Dr M Kilkenny Dr C J Clark Dr D Indar ioiio 5110 7110 9110 Ioiio ioiio 5110 0/1 ioiio 417 2/2 ioiio ioiio 6110 518 818 818 618 616 otrEENS' COLLEGE, CAMBRIDGE REFERENCE AND ADIVIINISTIL4TIVE INFORThL4TION FOR THE YEAR ENDED 30th WNE 2024 PROFESSIONAL ADVISORS Auditors Actuaries Peters Elworthy & Moore Salisbury House Station Road Carnbridge CBI 2LA Cartwright Group Ltd Suite 7, 2 Floor, The Hub, IQ F8rnborough Famborough Hampshire GU14 7JP ankers NationaI WestiTJinster Bank plc 21 Petty Cury Cambridge CB2 JNE Illvostment Fund Mana ers Rathbones Group Pl 8 Finsbury Circus London EC2M 7AZ Sarasin & Partners LLP Juxon House 100 St Paul's Churchyard London EC4M SBU Pro Advisors Bidwells LLP Trumpington Road Cambridge CB2 9LD Carter Jonas LLP 6- 8 Hills Road Catnbridge CB2 INH Solieitors MilEs & Reeve LLP Francis House 112 Hills Road Cambridge CB2 IPH CHARITY INFORMATION Charity RegistratioD 1137495 Registered Address Silver Street, Cambridge CBJ 9ET Website www.queens.cam.ac.uk QUEENS, COLLEGE, CAMBRIDGE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR TItE YEAR ENDED 30" JUNE 2024 STRUCTURE. GOVERNANCE AND MANAGEMENT Organisation Queens. College, Cambridge is a self-governing acadetnic community and body corporate, comprising the PresidenL Fellows and schola￿ and is one of the thirty-one Colleges in the UniveTsity of Cambridge. The provisions which regulate the purposes and administration of the College are to be found in its Royal Charter, dated 30th March 1448. and its Statutes, as made in 1955 and vaTiousIy amended from time to time. tnost recently in 2017. The Governing Body The Chatity Trustees of the Colleg¢ aTe the voting members of the Governing Body, being its President, Professorial Fellows and Official Fellows, appointed by the Governing Body iu accordance with the Statutes of the College. The membership of the Governing Body is tsiven on pages 3 to i. The Governing Body is responsible for maintaining a sound Syste￿ of internal contTol that supports the achievement of policy) aims and objectives while S￿eguarding 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 Qoverning Body has the discretion to forni committees to consider and to make recomEnendations to the Governing Body in accordance with the College's Statutes. The Governing Bi)dy also has the discretion to delegate powers to committees. The Governing Body has fonned a nwnber of coJnmittees, the PTincipal ones being:_ Bursarial Committee - to oversee the financial management of the College in accordance with the Colleg¢ Statute5, under the overall direction of the Governing Body. In accordance with the Colle(Te Statutes, the Senior Bursar, advised by the BursatiaE Committee, is responsible for the financkal management of the College, subject to the overall direction of the Governing Body. The Bursarial Committee, without the BuTsars, acts as an Audit Cottllnittee" Edu¢atioD CoD)mittee- to oversee the Educational and Tutorial function of the Colle(Te in accordance with the College Statutes, under the overall direction of the Governing Body, and to advise the Senior Tutor on matters pertaining to the a(hnissiorA, education and wellbeing of our students" Investments Committee - to keep under continual review the investments of the College, against agreed benchmarks, to Tecollllnend and implement the investment policy approved by the Governing Body. to maintain consultation WAth the Colle¢Je's financial advisors. oIrEKNS' COLLEGE, CAIVIBRIDGE ANNUAL REPORT AND FINANCIAL STATEIVIENTS FOR TItE YEAR EIWED 30th JUNE 2024 These Comxrjittees a key component of the College, s systetn 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 CoLumittees undertake detailed scrutiny of the issues wbich the Governing Body has placed within their respective remits and this work inforn]s the recommendations each Committee makes to the Governing Body. This process was in place for the year ended 30 June 2024 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 rtLBke regular reports to the Governing Body through the medium of detailed mlnutes. &8 well &% dedicated reports. During the year. all Governing Body meelillgs were held in a hybrid forniat. The Governing Body's review of the effectiveness of the system of internal control is infornied 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 frameworL 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:_ A copy of the College Stattites. and A copy of the most rec¢nt Annual Report and Accoijnts" and A copy of Procedures and policies relating to the College" and An up-to-date list of College Officers, Committees and their meJnbership- and A copy of the Charity Commission's guide to the respollsibilities of a Charity Trustee (both the full and summary versions). and A copy of Being a Trustee (the Charity Commission's easy read guidall¢e, which explains the main things that a Tnjstee needs to know)" and Copies of rninutes of previous meetings of the Governing Body and its principal committees. alld A declaration of qualifications to be a Trustee (to be signed and held by the College). and A list of all diary dates relevant to membership of the Governing Body. and Information about the management of confiicts of interest; and The latest circulars from the Charity Commission" and A copy of the latest Corporate Risk Register. Each new mernber has an induction meeting with the Senior Bursar and the Senior Tutor, prior to attending a meeting of the Governing Body. All mcmbers of th¢ Governing Body receive the circulars of the Charity Commission as they are issued. Attendance of Trustees at meeting of the Governing Body during the year is given on page 5. Key Management As detailed in note 8 to the accounts, the key management personnel are the Presiden¢ Senior Burs and Senior Tutor. These Officers have the authority and responsibility for plaT]nins directing and controlling the activities of the College. These Officers, together with the Vice-President, the Senior Fellow, Admis%ions Tutor, Deputy Senior Tutor, Domestic Bursar, Deon of College, Deputy Dean of College, Dean of Chapel, who is also the Head of Welfare, the Chaplain. the Financial Tutor, the Development Director, the DEI lead, and the Secretary of the SCR meet on a regular b￿15 to consider developing operational issues as they arise to assist in foTmulating the College's response. During the year this group has met usually three times during each Tenn. QUEENS, COLLEGE, CAT￿BRIDGE ANNUAL REPORT APID FINANCIAL STATEMENTS FOR THE YEAR ENDED 30" JUNE 2024 Risk Management The Governing Body is committed to an ongoing policy of identifyin& monitoring and man2ging the risks that might adversely affect the operation5. reputation and general well-being of the College. The Bursarial Committee, chaired by the President usually reviews at least twice each Ye￿ the operational. financial, regulatory and legal risks fa¢ing the College, (including reviewing the Coryorate 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 d mitigate the risks faced by the College. The principaj areas of risk faced by the College, and the me&8ures taken to manage them, have been identified by the Governing Body as follows and are covered in detail in the CoTporate Risk Register mentioned above: Financial PerfoTmance: Risks to income. expenditure andlor investment perfornjance as a result of external factors, e.(r , a health emergen¢y, change to fee regime, economic dommturn, poor investment markets, persistently high infiation, a war with global dtsruption to supply chains. 3ke College has impJemenled a robuytprocess ofbudgeting andforecagting to keep costs associated with the College's core activilies undeT COPlYtaxt review in the light of any changes in fv7ding or other income sozwces. ThE College's Jnvestmenls Committee benefits from the expertise of an externol member and aims to maintoin a diversifiedporrfolio of investment assets lo ty to minimise the incidence ofcorreJation between asset clagses. Academic Staff: Failure to attract and retain high quality academic staff to deliver the College's teaching and other academic needs. 3ke College has a strong FelloTrvship an eihos ofsupporltve inter-personal relationships within the Fellowship, service from weZfL7re and other support staff a77d pastoral support orrangements allowing Directors of Study/Supervisors to retain focw on intellectual engagement. The Collgge rggularly rgviews its stipend struclures and benckmarks appropriately Trvithin the Collegiate Unrversity and rs conttnually moniloring tern￿ aFFd benefifs. There is a regular review of teo¢hing neeas and engagement in the University Teaching Officer ("UTO") Scheme, wherepossible. Student dmissi ns.. Adverse adrnissions outcomes in teLTllS of potential. commitmenL width of participation andlor compliance failures. The College has a trap7sparenfpro¢ess with academic criteria unifornily applied across alJfields ond UitEversity-trained interviewers. The College no2s an &rlensive outreach programme ￿Med at attractiP2g the strongesl candidates regardless ofsocio-ecoFwmic background. Student Develo tnent- Failure to enable students to flourish academically. Acadepnic Teviews GOTducled by the sthdenls, Direclors of Siudies, alongside analysis of students, feedback by rhe Senior Trltor. Academic and pedagogical best practice encour(Jggd by regular review, at the EducatiOP2 CoTpynittee. Benchmarking ogainst oiher CoZIÉges via the Senior Tutor's Committee and direct liaison with both the JCR and MCR Commiltees, Cambridge University Stude77t Dnion where necessory. Engagement with the Officefor Studgnts of PREVEhryTegt4latOT. QUKENS, COLLEGE, CAMBRIDGE ANNUAL REPORT AI¥4D FINANCIAL STATEMENTS th FOR THE YEAR ENDED 30 JUNE 2024 Student Welf8re and well-bei .. Rtsk of failures of student welfare andlor pastOTal support leading to mental health, safeguarding or monetary issues for students. The College has exlensive in-kouge paslorat and welfLffÉ provision together with access to additional external expertise. Buildin tructure. Facilities and SecuTity: Rtsk of compromised security (including ¢yber- attack through physical or digital means), poor-quality accommodation and facilities due to lack of timely inv￿lment, unanticipated failures in infrastructure, persistently unset needs, or un¢xpected high building maintenance expenditure. The condit3on of tke eslale is regularty monitored by the Mointeptance Depan)nent though a prograrnme ofplanpzedpreventative maintenance, along with the asses3TneF71 ofmaintepzance rgq84ests complaip7ts, ensurip7g a proactive approack io £staÈes management. In addilion fo this, there is ongoing pnaintenance capitalprogram in place aLldressing the refvrbishment and decarbonisotion of the buildings. IT and otker I￿aStructure, both physicul and digital. tLF2dergo reguzar review É2nd are supported by a continuokg im?estment Progr￿ emphasising the importance of bwiness conlinuity, Staff training (Thd aworeness ipz relation to ryber security. Bolh the Domw Committee and the Bursariaz Con2mittee oversee and monitor th￿8 aclivitles. Scope of Flnancial Statements The financial statements are a consolidation of the results of Queens, College and its subsid1￿les, QC Enterprises Limited, Q College Property LiJnited a￿d Q C TradÉng Limited which 8Te wholly owned by the College. Q College Property Limited has continued to be non-trading during the year. Q C Trading Limited relates to the Visitors, Shop. QC Enterprises is the coryorate vehicle through which the College undertakes Its commercial conference and catering activities, while the College undertakes directly all other accommodation and catering activities. Any fin8ncial surplus made by QC Enterprises is donated to the College. AlllJS AM) OBJECTIVES OF THE COLIEG The College is an institittion of higher education. its purposes are the promotion of study and prayer. The College h&8 the following aims and objectives: to maintsin the College's emph&sis on the individual in acadeinic and p&storaJ PTovision' to deliver an excellent Undergraduate education by safeguarding the provision of small-group teaching through the College-based supervision system" and to achieve and maintain the highest standards in education at both Undergraduate and Postgryaduate levels while maintaining welfare support through the dedicated student SUPPOrt team. to support a conllnunity of Fellows, students and staff, allowing the benefIts of a large, internationally renowned University to be realised in a small aud close-knit community; to promote academic ￿search of the highest quality by Fellows and students. and to maintain and enhance the endowments and benefactions, historic buildings and grounds of the College for the benefit of future generations. Remaining an independent foundation, while foming an integral part of a Collegiate university, is fundamental to the College's long-tem] 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 firture development. The College will continue to play an active role in University bodies and in contributing to the fonnulation of University policy. 10 QUEENS, COLLEGE, CAMBRIDGE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 301h JUNE 2024 In pursuit of its aims and objectives, as well as its charitable objects, the College adinits jLinior mernbers) Undergraduate and Postgraduate students ITJatriculated in the Uiiiversity of Cainbridge. It provides financial and other support to those of its Ineinbers who require it in order to achieve its aims and objects and it supports teaching and research iii tlie University. In furtherance of its objects, tlie College Inaintains and manages an endoivment of propeity and financial assets. Besides financial and tutorial support. the College also supplies accominodatioii. catei'ing and other services to ils Inembers and others. The Governing Body has considered how best to support delivery of the College's ainis and objectives and has adopted a strategic approach represented by the diaoram below. Construct: Five "Pillars" and a Unifying "Roof, Seeking to enhancè Nlrtuous self-reSnforc5ng dynamics Fost8rlro the lrtellect￿l SoGioty StrwgthoTr ing financ5al res111￿¢8 and lorg- twm ￿atsI11ty R•mo%ing ¢b#acles to ev￿ broader ¥¢co88 and partlclpation EnsurtTWJ 8 coherwrt. enabllr¥J ar•J sustalrnbl• irrfrastructurè Iplryslcal and technoFoglGall EnPAndng effid•rt, r•prny•rt. tatlw arml accourtabla gi>v•manco Last year the College adopted the reviemi of its strategy and strategic imperatives under the 'Five Pillars" approach which was previously outlined in tlie ?O?11?2 Report and Accounts. Tliis is to build on and significantly enhance tlie College s cui-rent positioii in all aspects of its activities. The College has continued to impleiTJent the strategy during the course of the year under review in line with tlie agreed five to teii year tiine horizoii approved by tlie Governing Body. To restate the positioii. the Five Pillars to which approaclies were developed ivith the diverse participation of Fellows are; l ) Fosteriiig the intellectual society- 2) Strengtlieiiing financial i'esilieiice and long-terrn viability- 3} Reinoving obstacles to even broader access and participatioii; 4) Ensuring a cohereiit, enabling, and sustainable iiifrastructure (both physical and technological); 5) Enhancing efficient, representative and accountable governance. Tlie Five Pillars approach reflects tlie interdependencies within the College's activity and need to enslire they are aligiied, colierent and consistent to streiigthen the College for the future. Tliey also allow for exploiting synergies a])d efficiencies. QUEENS, cOLL￿GE, CAIVIBRIDGE ANIWAL REPORT AM) FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th JUNE 2024 PIJBLIC BENEFIT STATEMENT In accordance with its Royal Charter of 1448, the College's charitable objects are the promotion of sthdy and prayer through the provision of a College in the University of Cambridge. J]]e Governing Body h&8 complied with its duty regarding public benefiL showing Tegard to the Clwity Commissions, guidance. The College provides, in conjunction with the University of Cambridge, an education for some 508 Undergraduate, 442 full-time and 123 part-time Postgraduate students (2022/23.. 519, 451 and IJ8 respectively). which is reco￿11$ed internationally &% being of the highest standard. Thks education develops sttdents academically and advances their leadership qualities and inte￿￿onal skills, and so prepares them to play fijll and effective roles in society- In particular, the College provides: teaching facilities and individual or small-group supervision, as well as pastoral, adrninistrative 8J]d academic support through its kntorial and graduate mentoring systems. and social, cultural. musical, Tecrealional, and sporting facilities to enable each of its students to realise as much as possible of their academic and personal potential whilst studying at th¢ College. The College additionally advances study through". providing Research Fellowships to outstsnding academics at the early s￿￿e$ of their careers, which enables then to develop and focus on their research in this formative peTiod before they ulldert￿e the full teaching and adminisÉrative duties of an academic post. supporting research work pwsued by its other Fellows through promoting interaction across disciplines, providing facilities and grants for national and intemational conferences, research trips and research materials. encouraging visits from outstanding academics from outside the University of Cambridge. and enhancing the dissemination of research undertaken by membeTs of the College through the publication of papers in academic journals OT other suitable mean5. 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 canies fonvard the tradition, continuous since its foundatio￿ of being a place of prayer. In particular, the College: . htaintains and supports the Chapel as a place of prayer 8nd holds a variety of religous services on weekdays and at weekends dwing tenn, wkn.ch are open to the general public and visitors" and . Supports, through the College Chaplaincy team, the emotional, mental and SPiTitEEal well-being of all members of the College comLnunity whatever their faith tradition, or none and provides a Faith Centre in the Cripps Building to facilitate interactions within and between the different faiths within the College collununity. 12 QUEENS, COLLEGE, CAMBRIDGE ANNUAL REPORT AND FINANCIAL STATE]KENrs FOR THE YEAR ENDED 30th JUNE 2024 The resident members of the College, both students and academic staff, are the primary beneficiaries and are direcdy engaged in study. However, beneficiaries also include students and academic staff from i)ther Colleges in C8rnbridge and the University of Cambridge more widely, ViSLting 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. QUEENS, COLLEGE, cl11￿BRJl)GE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR TItE YEAR KNDED 30th JUNE 2024 REVIEW OF OPERATIONS Queens. adrnits students who have the greatest potential to benefit from the educational environment provided by the College and the University and it recruits academi¢ staff who are ablc to contribute most to the academic excellence of the College, regardless of their financial. social. Teliuious or ethnic background. Undergraduate student applications are in the tsble below, showing the level of diversity of students attending Queens,. About one fifth of Undergraduats students are from overseas (including EU) backgrounds: ApplicaJ)ts in Michaelmas Terni 202J Nunber of applicants 900 Male 53 %, female 45D/o, undisclosed 20/0 Home 67/0" over5e&$ 330/0 Office for Fair Access (OFFA ***) applicants 33.90/(k maintained sector 66.10/0. independent sector Offers in 2024 Number of offers 194 (21.5.0/o of applicants) State educated 70.6010, independent educated 29.40/0 (of home offers) Male 470/0, f¢rnale 50010, undisclosed 3 % 19 offers made through the pool and )4 of our applicants recexved offers through the pool *** OFFA appjicants are defEned broadly a5 applicants nornally Tesident within the UK. The above outcomes are entiiely consistent with the College's objectives Én respect of admissions. The College charges the following fees: Home Undergraduates aTr Charged a combined University and College fee of £9,250, (2022-2023.. £9,250), of whtch the College share is £4,625 (2022-2023.. £4,625). Undergraduates from overseas are charged a College fee of £1 0,467 (2022-202i £10,152)" PoSt￿luateS are Charged a combined University and College fee which varies according to the course. The total fee income is then allocated across Colleges at an equal average rate per student wbich for 202?-2024 is £5,12J (2022-202).. £4,762). and Accon]modation and meals are charged at reasonable rates. 14 li QUEENS, COLLEGE, CAIKBRIDGE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th 2024 Widening Participation The College's extensive wideJJing participation programmes help young people from backgrounds which are trnditionally under-represented at Cambridge to have the confidence and inforn]ation to apply to top universities, including Cambridge. We work hard to provide age-relevant infoTJllation and guidance about higher education an(L in particular, to demystify the application process at Can)bridge. Interactions with those in ye￿S 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 adviso￿ 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 Cambridoe. We have particularly deep links with Bradford, Kent and the borough of Havering. We update our events programrne regularly and are always looking for ways to enhance our offering and to work effectively with external p8ffte￿. Our prograM￿e 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 groThth in applications. and therefore admissions, from schools with which we work closely st8n(18 Out. Within totsl admissions and access costs of £0.856 million shown on page 49, £0.288 million was spent on Access and Widening Partlcipation activity in the year. The College continues to reg￿d 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 2023-24, 119 Undergraduates (out of our 4J2 Home Und¢igraduates) (2022-3: 11 l and 449 respectively) received such bursaries with a total value of £)78,266 (2022-2) £310,315). The scheme Is approved by the Office for Students and provides benefits at a substantially l]igher level than the minimum OFS requirement. It is wKdely advertised on the University website, on the College websites and in the Admissions Prospect￿$. The Coll¢ge spent £312,029 on additiona] bursaries, including for Po¥cgraduate students, in 2023-24 (2022-23: £254,307). The College also supports all sÉudents through a grant scheme open to all to assist with attendthce at conferences, and travel grants. In 202i-24 the College spent £94.696 on this scheme (2022-23: £125.378). In addition to its other programmes, the College opeTates a hardship scheEne for all students in financial hardslllp. In 202J-24 the College made hardship grants totalling £50.700 (2022-2) £27.2J6). Provision of WeIfare Support The Health and Well-being teatn and Tthors provide specialist and professional care for students of the College. This consists of (although is not restricted to) generaI pastoral provisio￿ professional counsellin Cognitive Behavioural Therapy, and physRcal health suppo¢ bereavement Counsellin￿ eating disorder interventions and a series of piogTatllmes to help the move from school to university which brij with it increased independence. 15 QUEENS, COLLEGE, CAJ￿BRIDGE ANNUAL REPORT AND FINANCML STATEMENTS FOR THE YEAR ENDED 30tb JUNE 2024 Mental health issues are more widely rep)rted discussed today. This may be due to incre&sed incidence, and the effects of the Covid pandemic are important here. &$ well as th¢ reduced stigma in articulating problems., Expectations about insti￿tional provision are now higher Individual college welfare provision is WAdely compared by Students and applicants aT￿ is seen as a key indicator of the "student experience" The university h&s also reviewed and deepened its own provision in recent year. Stt￿ents from disadvantaged backgrounds may have addÈtional concerns or issues that require supporL Welfare. in this way, is part of the College's commitEnent to increase access for all. Students from disadvantsged back￿oundS may have additional concerns or issues that require support. Welfare, in this way. is part of the College's commitment to increase access for aEI. The Health and Well-being team works alongsid¢ the Tutors of the College in providing pastoral support to students. Overall responsibility for this activity rests with the Senior Tutor, however the day-tcFday management is devolved to the Head of Welfare (operationally) and the Head of Academic and Tutorial servI￿s (administratively). The Head of Health and Well-being a150 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 MeELtal Health Nurse/Welfare OfficerlCB T Counsellor, a part time Counsellor/Coach, and a Chaplain (part of whose job involves providing pastornl support to the wider College conllnunity). There are also two further Har&sstnent 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 Psychi8tric Services. Psychological practitioners, ScientifIc Coaching Essay writing guidance, physical trainers, legal advice and PhysiotheTapists. Academic Staff To fulfil its charitable puwoses, the College employs College Lecturers, Tutors, Clergy and senior academic and administrative offAceTS. Th¢se posts are qualifying offices under the College Statutes. The appoinknent of Fellows is a result of their employment in a qualifyÉng ofEce which offlce is undertaken with the intention of furthering the College's aims and their employnlent directly Contribut￿ to the fulfilrllent of those aims. The private benefit accruing to the President and Fellows occurs solely tbrough 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 nornially follow national settlements applying to the university sector, as implefflented by the University of CaTllbridge. Without the employment through qualifying offices of Fellows. the College could not fulfil its charitsble aims as a College in the University of Cambridge. The President and Fellows of the College also receive b¢nefits as beneficiaries. These comprise research grants, conference gw]ts, book grants etc. These benefits are provided with the intention of furthering the Colle(Fe's aiins. The amounts of the benefits provided 8re objectively reasonable, Llleasured against the academic benefits made available to other beneficiaries of the College. 16 QUEENS, COLLEGE, CAl￿RIDGE ANNUAL REPORT AND FINANCIAL STATEl%tENrs FOR THE YEAR EI¥DED 30th 2024 Academie Performance During this AcademÈc Year 481 Un(kr￿adUateS ti)ok Tripos Examinations and 870/0 of those achieved a ade of 2.1 or better. Capital Expendithre, Maintenance and Environmental IWIanagement The College is navigating economic challenges posed by the high inflation of the last few years, whioh impact both external revenue and procurement. In Tesponse, the College is PriOTitising prudent financiat management, focusing on essential safety and b￿lneSs-critiCal repairs while progressing with major capital projects. The wider estates rnasterpla￿ aimed at sI￿1fiCant developments and refurbisbments over the next 20-30 years, requires approximately £150 million in aggregate, at today's prices. Tllls plan includes necessary updates for accessibility and decarbonisation. While the College has secured pl8]ming pennissions during 202J124 for key projetts like Owlstone Croft and the Erasm￿$ Buildin& there is a notable funding shortfall. Due to its modest size relative to the student population and past issues with repayment. the endowment is not a viable ￿lld]ng source for these projects. The challenges include balancing capital expenditure with the high costs of decaTbonisation and effective estate maintenance. A focused fundr￿sIng effort is critical, and while the Development Office is engaging with potential donors, secwing substantial commitments Temaills a challenge. The Buildings Working Paty, having last met in May 2024, is evaluating the Masterplan considering evolving needs and con5tr2ints. Achieving the Masterplan's goals requires a balanced approach to funding, project prioritisation, and fInancial management to ensure that other critical areas not compromised. A review and potential adjusirnent of the Masterplan are planned for Summer 2024. This will involve reassessing priortties, possibly delaying PTojects, and exploring alternative strategies suth as improved space utilization and enhanced revenue opportunities such as conferencing facilities. In terms of project delivery, the Erasmus Building refurbishment project has been a significant fo¢us this year, with the goal of modernising the facility and enabling it to be heated using heat pumps rather than the existing gas-fired boilers. This is an important step in the decarbonisation of the College's Silver Street site. The refurbishment of the Er&8mus Building cost £8.6 million. A single atumnus donation of £5 million, and £1.25 million in Gift AL￿ Iw enabled this projecL After receiving plamiing pern]ission in Au.¢yu5t 2023, the College successfully secured a government Salix Grant to support our decarbonisation objectives. The shorfall of approximately £l.5 million, accounting for ts been addressed through an additional fimdraising campaign. The project collunenced in July 2024 and is scheduled to be completed by Sune 2025. The aijn is to complete all thsruptive work by the end of the Easter vacation in 2025, ensuring minimal disruptAon during the examination and revision periods next y￿. One of the biggest challenges Df this project is aCcom￿OdatiOll displacement. During the refi￿bIShIllent, Undergraduates will be displaced to Owlstone Crof¢ with most 2nd-year undergraduat￿ accommodated in Blocks A and B (approximately 100 students). 17 QUEENS, COLLEGE, cAl￿BRIDGE ANNUAL REPORT AND FINANCIAL STATEl￿E￿rs FOR THE YEAR El￿ED 30th JUNE 2024 The purchase of 12-14 Grange Road in January 202i has piovided 32 additional rooms. This property is vital in managing our student accommodation during major refiirbishment works, TeduciDg our dependence on exteTnal accommodatio￿ and rninimising disTUPtion to Postgraduate accommodation levels. Overall, significant progress has been made this year in advancing plans to decarbonislllg the estate. The Er&%mus BuildiJ]g refurbisl)ment now being well-positioned for completion in 2025. Following the purchase of 12-14 Grange Road, a feasibility study for converting the Chapel at the site was concluded in November 2023, tbis identified a viable plan for a long-term ￿ChIVe. However, significant funding is required of c£1 million. Temporarily, the non-sensitive archive material will be relocated to the Chapel from Owlstone Croft and Silver Street stores, here it will be sorted and catslogued. Further fi￿dS will be needed for a new home for the Special Collection. t was reported last year the Owlstone Croft project was refused planning perniission in January 202J. This followed a protracted planning review proces5, which at the time of submission, gained the full support of the City Council PlaT￿Ing Officers, bui despite being put forward as recommended for approval, the local Councillors refused the application, After successfijlly presenting the scheme at Plannlrtg Appeal in September 2023, the College was granted full planning pennission in NoveTnber 2023 by the Secretary of State. This includes refurbishing end decarbonising A and B blocks and constructing four new PoSt￿aduate housing blocks (13 homes for 60 students). A Salix Application has also been Secure￿ funding the decaTbonisation objectives of the re￿rbIShment elements. The project progresses onto detailed design, needed for the new-build elements to meet planning obligations. ParalLel to thks, work on the next stage towards tendering continued, with tl)Tee major contractors expressing strong intcrest. Plans will soon be submitted to the City Council, aiming to discharge planning conditions within statutory timescaEes. aimin£ to start cons￿CtIon in the SUmEner of 2025. The Nursery relocation project to 26 Barton Road, a joint venture with Pembroke College, and an enabling project for the Owlstone Croft Mastery)15￿ commenced construction in May 2024. with completion expected by January 2025. The total budget is £2.7 mlllion with a government Salix Grant fl￿ding of £68,000. In May 2024, the refurbishment of the Fisher Building has been confmed as the next major capitsl project after Owlstone Croft, with approval to proceed with ttoject Briefing (RIBA Workstage l) and a budget of £60,000 for this worL The 4)pointed team will prepare a project execution pla￿ with RIBA stsge I to be presented in December 2024. The construction start date is proposed for July 2027. Additionally, infrastnjctute and heat source proposals for the "light-side" of College are being developed as part of the Fisher Building briefing exercise. Work progresses on the sundiaL with the new stonework installed duTing Lent 2024. This will now Test for a year, while the face of the dial is mapped, and sun tracked. The newly painted face is due for decoration in 2025. The Ciipps Kitchen undenvent a major PToject to replace the originaI walk-in fridge 8nd freezer, expanding capacity and addressing issues with the layouts. Works began in September 2023 and were concluded in 18 QUEENS, COLLEGE, CAMBRIDGE ANNUAL REPORT AND FINANCIAL STATEMENTS th FOR THE YEAR ENDED 30 JUNE 2024 Easter 2024, including the replaceinent roof over tlie Western section of the kitchen. overlooking the Loading Bay. Followiiig the need to underpin one section of wall at Maids Causeway. the buildtng undenvent a coinplete refurbisliment as pa]1 of the ?0?" summer maintenance prograinme, tliis included new bathrooms, kitchen and improveineiits to tlie bedrooms. Donations and Fundraising The College s fuiidraising efforts are priniarily dii-ected at raising nioney froni our alumni. Olir fundraising approacli ensures that we understand and respect individual prefei'ences for contact in relation to approaclie5 seeking support, as well as more generally. Key objectives for the College include teaching, particularly endowiiig Fellowsliips. research, studeiit support, wideniiig participation as well as eiiliaiicing tlie endowinent. The College is very grateful to tliose of its alumni and others who continue to support it so generously. In 202i12024 the College received Linresti'icted doiiations totallin￿ £1,795,000, new expendable restricted funds £8,061,000, and Iiew endowmeiils totalliiig £282,000, giving a total of £ l 0,138,000 (£5.66 million 20221?0?J") in support of its objectives. The cost of tlie Alumni and Developinent Office (ADO), a College departinent, for the year was £686,966 compared to £7?0,261 iii 20?21202J. Tlie ADO costs include botli fundraisiiig and alumiii relations activity, 5Lich as reunions aiid other eveiits and publications. Tl)is yeai- there have been soine ' in person, eveiits held and Costs liave beeii stable. As the amount received cali vary sigiiificantly from year to year, the chart below details the three and five-year rolling average of donatioiis received, as well as the annual cost of (he ADO. Donations £14DO).O)O £￿￿L¥l.{￿l0 £8,(KSO,O £5,[￿,0C £4.O)0.000 £2,(th,0th) £0 2016117 2017118 2018119 2019120 2020121 2021122 2022123 2023124 Rolllng three year average funds ialsed •Rolllng five year average Offlce costs All fLindraising is carried out by tlie ADO. which reports detailed quarterly results to the Bursarial Committee and a surnillary report to the Goveriiing Body. The College is re(FiStered with the Fuiidraisiii(y Reglilator and was Iiot the subject of any coinplaints to tliat body in 202)12024, nor did tlie Col lege receive complaints about its fundraisiiig 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 infomied decision. Ib QUEENS, COLLEGK, CAMBRIDGE AJNUAL REPORT AND FINANCIAL STATETrtENTS FOR THE YEAR ENDED 301b JUNE 2024 Data handlfing The College continues to monitor its data handling, reporti￿ and Data Protection Statement in accordance with the UK GDPR requirements. Eqllal Opportunities The College is C0￿mitted to the ￿incIple and practice of equal opportunities and strives to be an equal opportunities employer. 20 QUEENS, COLLEGE, CAMBRIDGE ANNUAL REPORT AND FDIANCIAL STATEMENTS th FOR THE YEAR ENDED 30 JUNE 2024 FtNANCL4L REVIEW In common with otheT organisations, the financial year to 30 June 2024 has been a particularly challenging one in higbly uncertsin economic circUmsta￿ces. 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 putsue its principal goals of providing a fiT5t class educational and research environment to Undergraduates, POSt￿luates, and Fellows alike. whilst Striving to live within its means and manage the challenges and uncertainties presented by the pandemic. Financial Results Consolidated Income alld Expendithre Account The College recorded an Unrestricted Deficit of £ I,J27.000, (20221202J £1,627,000), after unrestricted donations of £1,795,000 (202212) £2,406,000), a Restricted Surplus of £8,061,000, (202212) £2,022,000) after restricted donations which mainly relate to supporting refurbislllnent of a major building on the Silver Street site of £8,061,000 (202212J £2,186,000). The overall surplus. before other gains and losses. is £5,746,QOO (2022123: £573,000). Year ended 30th June 2024 2023 2022 2021 2020 Unrestricted Income 16.66 15.60 14.00 11.69 u￿eStriCted Expenditure 17.99 17.23 14.94 13.21 (Deficit) Surplus RestrKcted SurpEus (Deficit) Endowments Surplus (DcficÉt) (1.63) 2.02 (0.94) (1.52) 8.51 (1.88) 8.06 (0.99) 0.18 1.38 2.46 Total Surplus (Deficit) before Other Gains and Losses 5.74 0.57 1.74 3.94 The level of deficit for the "Bndov4menV' column -£988,000 (20221202) surplus £178.000) largely refiects a cornbination of the Endowment expenditure on education and the difference between the investment incoEne Teceived in the year and the drawdown under the College's totsl return methodology. This is covered further below. The Unrestricted Deficit of £l,)27,000 is realised after charging depreciation of £2,795,000 (2022]2023: £2,772,000). Adding back the depreciation charge and other non-cash items in the Income and Expenditure account, such pension deficit provisions and any underspend on Restrtcted Funds, is a reasonable proxy for the cash the College has generated. 21 QUEENS? COLLEGE, CAMBRtDGE AIYLWAL REPORT AND FINANCIAL STATE1￿￿ENTs FOR THE Y£AR ENDED 30th JifNE 2024 This year the College shows &8 part of its Comprehensive Income and Expenditure account other g￿nS and losseg relating to investrnents assets: there is & gain of £6,951.000 (202212023: £2,977,000 gain) and a decrease in pension liabilities of £)64,000 (20221202J £466,000 liability decrease).This year there were no unrealised gain on revaluation of fIxed assets (2022123: £446,000 gain). The total surplus is £13,061,000 (202212023: £4,461,000 5UTplus). There are several matters to draw to your attention: The colltinuing> challenging operating environment is covered under the Scenario Planning section Last year the College adopted a Total Retutn Approach to Investment income which, in line with the experience of many others. acts as a smoothing mechanism and reduces the volatility of investtnent incorne from which the College has historically suffered. As described above, the drawdown is calculated by reference to a weighted average of the investmeirt &%sets over a five-year period, with a one year time lag for the amount of drawdown. The weighted investment agsets used in this year's Accounts is for the five-year period to Joth June 2022. The drawdown is set at a rate This year there is a change in the Accounting Standard and the change in Trspect of the USS Pension scheme deficit recovery contrib￿lOn$ Ks separately identifIed, rather than being included within the Education Expenditure, all of this item relates only to Academic staff. This year there is a credit of £1208,000. The Gross Unrestricted Deficit on the Education Account was £3.951,000, with the net deficit after the USS CTedit being £2,7J4.000 (20221202?.. £2,758,000 deficit). Academic fees in respect of Home under￿Uate students have not changed since 2018 so have declined by 310/0 in real terms. It is unlikely that such fees will rise in the foreseeable future and so we might reasonably expect the Education defLClt to continue to rise. The Gross Unrestiicted Deficit on the Education Account, is £1.037,000 greater than the unrestricted investment income. and is 1360/0 of wvestiicted investment income, (20221202i- This effectively means over recent years all the investment income h&$ been devoted to the education of current srndents. The College's accomjnodation, conference and catering activities showed a deficit of £2.i19.000 (202212023.. £2,22J,000 deficit). This area was the most affected by the pandemic &8 discussed The external revenue from conference and catering during the year continues to recover slowly from the disruption caused by the pandemic but Tetnains below the level of income enjoyed before the pandemic's onse( and this has continued to affect the College adversely. The College has few levers available to it when cost inflation is high but the Tevenue streams which the College has the ability to incre￿e in a similar way are very limited, 8nd this is evident in the results. 22 QUEENS, COLLEGE, CAMBRIDGE ANNUAL REPORT AND FtNANCIAL STATEMENTS FOR THE YEAR ENDED 30th JUNE 2024 Funding of the College Queens" College is funded from several sources as follows: Year ended 30 June 2024 2023 2022 2021 2020 Academic Fees 18.0/0 24.99/0 24.50/0 College Accommodation 17.5% I I.OO/o College Catering 4.5/0 0.8010 4.4% Conference Activities (including Catering) 6.6% Investment Income 14.60/0 17.10/0 18.60/0 21.90/0 Donations 52.8/ Other 0.80/0 2.90/0 3.1% The above table excludes new endowments frotn the calculations. FutUTe income from the new endowrtLents will appeaT &s Investtnent Income. Again, Restricted Donations have been included in the table. The College has been particularly fortunate to Teceive significanL restricted donations to enable the refurbislmient of the Erasmus Building to proceed, which results in the percentsge of income from donations being higher than in the last two years. Residual Impact of Covid-19 on Financial Results There ￿ been a continuing effect of the Covtd pandemic on the College's results for this financial year, principally on the income side, and p8rticularly in respect of accommodation, catering, and conference revenues. The recovery has continued from the bistoric lows of 2021, with totsl revenues frojn these activities of £7,063,000 (2022123- £6,141,000). Overall revenues are llow higher than those achieved in 2019, but the external conference and catering revenues are still 200/0 lower in nominaj ternis than those achxeved in 2Ql9. A persAStent bigheT inaation environment is 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 sorne time. B21ance Sheet The net tangible assets of the College stood at £167.50 LnillÉon compared to £1 i4.44 million in 202J. increase is caused by the rise in investtnent assets, capital vaIues and a 57.40/0 fall in the pension liability Lmder FRS 102 (202212023: 15.90/0 reduction). The College issued a fillther £7 million of fIxed-rate, long dated debt durillg th¢ year. The gearing ratio is 17.90/0 compared to 14.9 0/0 last year. The change in gearing ratio is a fimction of the new debt issue and the change in net tangible assets. 23 QUEENS, COLLEGE, CAlblBRIDGE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR EI¥DED 30th JUNE 2024 Lllain Endoivment and Investment Assets The College, &s a long-tsnn investor, a mediuul risk appetite for the management of its investments. Risk parameters are agreed with the College's Fund MweTS 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 diTect holdings or funds in which it controls the investmenL The College, is a beneficiary of a trust where the holdings are managed by the University &s trustee and so the College does not control that investment or the policy applied to it. The market value of the rnain Endowment and Investment Assets at 30 June 2024 stood at £145.95 million (202212023: £129.50 million). This figure includes £16.06 million of cash donations and other monies for operational propety inves1ment and other restricted expendable donations of £2.20 rnillion. when this is excluded the investment assets stand at £127.69 million (202212J £119.67 million)- The College has yet to deploy the new debt issue but had deployed the proceeds from its £15 million private placement in 2018 in new operational assets last year (2022123: nil unutilised). Year ended 30 June 2024 £mn 119.67 2023 £mn 115.31 2022 2021 £mn 93.32 2020 £m Closing position previous years Endoiwment & Investment Assets New EndoNvmcnts & unspent Endowment Income from previous year inv¢sted Opening Position Closing Position Endowment & Investlllent Assets nvesttllent Income Received 112.01 1.07 4.51 4.11 11.59 120.74 116.69 116.52 102.82 l27.69 119.67 115.31 112.01 3.71 3.21 3.20 2.92 3.68 Gains (Losses) Totsl Return 6.95 2.98 14.42 (9.50) (5.82) 10.66 6.19 2.27 17.34 The portfolio was invested in Global Equities, including Carbon Free holdings, (370/0), residential propety and agricultural estates (240/0). cash (2%), UK gilts (8%), Multi-Asset Funds which have a significant exposure to quoted equities, including holdings in the Cambridge University Endowment Funl (160/0) a￿d the balance in the recogDised alternative asset class of private equity. It should be noted that the private equity investments are shown at manager5, estimated value on a'marked to market" basi5. During the year the College has continued to increase its holding in ESG f￿d$ and has invested in key themes for the future, including clean energy, healthcaTr, automatio￿ and digitaI intelligence. It WIEI continue to reb￿ancE the portfolio in future years away from purely geographic allocations to "thematics" with a long-tern] horizon. It should be noted that with the College's stance on fossil fuel, the rebjrns the College receives at times when there is a significant M￿et shock leading to higher oil and gas prices will be lower than those a¢hAev¢d by other investors with such holdings. The College is aware of this but as a long-terni investor it accepts these short-terni tmpacts will occur without invalidating the College approach. The College now undertakes an ESG analysis of its quoted holdings representing 50% of its total portfolio, Telying on data provided by Morningstar and Sustainalytics, as a means of tracking the effectiveness of Rts investment policies regarding ESG. At the year end, this part of the portfolio had a sustainability rating of 24 QUEENS? COLLEGK, CAMBRIDGE ANNUAL REPORT AfrfD FtNANCL4L STATEMENTS FOR THE YEAR ENDED 30th JUNE 2024 4.1 out of a possible 5.0 {2021123.. 4." J 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 hav¢ been re-valued during the year. The total recorded return on the investment assets in the year was 8.80/0 (20221202) 5.)/o). The Total RetUTn policy of the College h&s been described above. The College takes a long-t¢rni view of the investtnent portfolio and attempts to protect its value in real tenns 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 fijnds are to be spent on a particular project. Future Capital Projects In 202312024 the College will continue with capital expenditure which is deemed to be critical for the naintenance of the estate and investment for the future. Libllg Term Debt Issue The Si￿lfiCant projects in 2014 and 2015 were funded, as previously reported, using the proceeds of an unsecured long-tem debt issue in which the College participated with 18 other Colleges. The College's sh￿e of the issue was £8 million, with an average life of 34 years, at an effective rate of 4.420/0 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 otheT of the issuing College5. This Issue was a good example of the Cambridge Colleges working well together for a cornrnon purpose. In January 2018, the College raised a fijrther £15 million tbrough 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 has been used to invest in further operational assets for the College to hollse more of its Postgraduate students and to eradicate some historic anomalies in the provision of Under¥aduate accommodation. In April 2024, the College issued a further £7 million through an additional private placement. This is again unsecuTed, at a fIxed rat¢ of interest of 5.59% per aT￿uM and is repayable in one amount in 2058, matching the repayment profiEe of the eaTlier issue of £15 million. The issued debt has a gearing covenant (maximum s￿/0 of net tangible 85sets) and a negative pledge. The College is comfortably within its covenants. Tllls debt appears as a long-tenTA liability on the balance sheet. The College, ￿ a peTpetual institution, must plarA cffectively for repayment of the four issues of its long- teTTr debt. To this end the College had a plan to purchase almost matching gilt issues for the various matwity dates of the differcnt trnnches. 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 puichase gilts at sensible prices in firtherance of this Strategy. Further purchases have been made duriJ]g the course of this year. The total nominal vatue of the gilts held by the College represents 55 % of the debt issued as at )0 June 2024. 25 li QUEENS, COLLEGE. CAIVIBRIDGE ANNUAL REPORT AND FINANCIAL STATEIVIENTS FOR THE YEAR ENDED 30th JUNE 2024 Pension Funds The College participates in two pension schemes detailed below. The College's academic staff are members of the UniveTsities Superanrjuation Scheme and the issues and challenges facing this Scheme. alld the College's staff who ￿e members of IL have been well publicised. The ¢ffect of the FRS102 adjustsnent in respect of this Scheme. following completion of the latest valuations, in the Income and Expenditure Account this year is a credit of £1.208,000 (20221202J £10,000 debit). The Cambridge Colleges Federated Pension Scheme (CCFPS), a pensioJJ scheme exclusively for non- academic staff, has its filll liability recorded in the balance sheet under FRS102. The deficit shown this year has declined by £364,000 (20221202) £466,000 reduction). The decrease An the deficit is driven principally by a higher discount rate used to cdculate the present value of the scheme's liabilities. There is also a positive impact in the stsff costs shown in the Income and Expenditure account of £7i2,000 {2022J2023: +£299,000) arising from FRS102. The College is currendy reducing its pension liability under the scheme with additional contributions oveT an eleven-year period. The effect of the above ch8Jiges in respect of both Schemes is a positive balance sheet movement of £2.30 million (202212023: £0.76 millkon positive). Reserves PoIicy 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 inteTgeneTational equity and balance the nee(L8 of current and future students. FTe¢ r¢serves 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 Tn]st Funds, permanent restricted end0V￿LettE restricted funds and fixed and heritage assets. Net free reserves are after deducting the provision for pension liabilÉties. Total Reserves 2024 £mn 169.2 2023 £mn 158.5 2022 £mn 154.7 2021 £mn 152.9 2020 £mn 127.2 Total Reserves (excluding Pension Provision) Less: Restricted Reserves 108.2 97.4 93.2 91.2 69.8 Less: Fixed & Heritage Assets Free Reserves 52.0 40.9 39.5 10.8 20.6 22.2 19.4 Less: Pension Provision Net FTee ReseTves 15.8 26 QUEENS, COLLEGE, CAMBRtDGE i) ANNUAL REPORT AND FINANCIAL STATETrtENTS FOR THE YEAR ENDED 30° 2024 The College's target reserves are as follows: Reserve Target Reserve Ratiollale Contingency Income & Expenditure £6.48 million Contintrency to cover extrernelun¢xpected shortfall in income or additional extreme/unexpe¢ted expenditure equivalent to 12 months accotnrnodation conference and cafrring income being the average of the last three non- pandemic years, viz 2019, 2023 & 2024, (previously 18 months) Emergency Building Repair Contingency £2.52 million To fiLnd unexpected urgent repairs to buildings in the estate e.g. roof failures, etc. equivalent to 50/0 of buildings (including assets undeT construction) as fixed assets Total £9.00 million As of 30 June 2024, the College's free resenres were £7.) million (202212i £6.8 millÉon) coMp￿ed with a tsrget reserve of £9.00 million (2022123: £11.51 million). The movement is almost entirely due to the receipt of si￿11fiCant restricted donations incre&sing restricted reserves, together Wkth a small increase in the value of operational properties in the balance shee( while unrestricted reserves were stsble and pension liabilities reduced. The College has reduced the peTiod used for the Income & Expenditute contingency frorn ¢ighteen to tt¥elve months as the need for so large a contingency, based on the experience of the pandemic years, is too restrictive: the aggregate loss of reverAue in the College's conference and catering activities over the four financial years from 2020 (2020 to 2023 inclusive) is equal to ten months revenue of the average of the revenues in the three years detsiled above. The worst year of the four thows a loss of revenue equal to seven motrths of this revenue stream. The College will continue to keep the appropriateness and level of this contin(rency under review. The significant factors which will affect future reserves is any impact of the disruptions arising from the wars in Ukraine and Gaz4 including disruptions caused to supply chains, any further increases in inteTest rates, a higher level of infiation than being experienced now. particularly in respect of its operations and the financial and other markets in wl]ich the College has invested. This level of reserves, while below the targeL enables the College to consider Care￿IlY and react appropTiately in the event of further, unforeseen &xtr¢rne circumstances OT a SI￿lficant prolongation of the economic volatility. The College is focusing on ￿￿]￿lSing unrestricted income and unrestricted donations, managing costs, effective use of restrictive income from Special Trust Funds, pernhanent restricted endowment aTkd other restiicted funds, and investing in the endowment and investment assets in order to recover from the impact of the last three years and rebuild and enbance Its free reserves. The College needs to maintain eknce its unrestricted reserves as it is oue of the measures of its relative financial strength in tenlls of its pension obligations as well as for its external funders. The Governing Body will keep the reserves policy under review and consxder the need for further specific Teserves from time to time a5 circumstances change. QUEENS) COLLEGE, CAMBRIDGE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE EP4DED 30th JUNE 2024 Seenario 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 Colleg¢'s approach to identifying and maDAging its fInancial and other risks. The Governing Body h&$ considered carefully the afterniath of the higher inflation environment and the possible disruptions to supply from the wars in t)kraine and the Middle East and other factors, both international and domestic, on the College's ftnances in the new fLnanci8] year and beyond. At meefjiJ]gs in May 2024, it ¢onsÉdered a base case scenaJio of normal academic activities and a continuing, gradual recovery in external revenue from conference and catering activity with inflation of 30/0 for this year and then retlln)ing to ¢2Q/o over the period. The College being able to adjust its charges only Parti￿lY in the early years to meet the change in infiation together with a reduced ijjitial level in donations with a steady improvement thereafter. Invesknent income risxDg slowly from the distribution undeT Total Return policy. It also allowed for the reduction in room revenues from students from the total refijrbishment of the Erasmus Building which necessitates its closure for one year. The base c￿e scenario w&8 over a four-year time horizon and showed the College being able to maintain cash gcneration and return to a surplus over the period. The Governing Body also considered two downside sensitivity analyses, with the severe cas¢ assuming significantly bigher infiation for longer wÉth lirnited ability to maintain charges in real ternis and a decline in both investment and donation income. The Goveming 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 c&se scenario. Going Coneern 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 detsiled budget for the fortbcoming year, and the actions required by IL as part of the review and have concluded there is a re￿ollable expectation that there are adequate resources, including the Strength to operate and meet the liabilities of the College &s they fall due, over the period of the assessment and for the foreseeable future. Principal Risk8 and UneertaiDtie$ The principal risks and uncertainties that the College faces in the forthcolning year may be briefly summarised.. Sustained higher infiation with the College having limited room for manoeuvre in respect of addressing its impact in mitigating a widening deficit. Such an enviionment may atso adversely affect botEL inveslment markets and possibly pension obligations" The ongoÉng aftermath of world events, including the recent pandemic and the Ukraine/Rwsia and Ham&sllsrael wars, voEatile interest rates, and consequential global economic and financial uncertainties, may have a SI￿lfICant effect on the College's revenue streams and on the markets in which the College invests. It is possible that capital values will be highly volatile and investtllent income may be adversely affected. Invesiment capital Rosses would affect adversely the College's level of free ieserves" A similar "off model" event to the pandemic, leading to the suspension of the College's usuaE a¢tivitie5. The College has a specific reseTve for thi5 eventuality" 28 QUEENS, COLLEGE, CAMBRIDGE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th 2024 Unforeseen events disrupt the College's education and other activities such as to prevent the College from operating. Although the College has a long-terEn programme of building renewal and improvemenL it is always possible with buildings of the age of the College's estate that there will be unexpected issues that rnay arise. 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 h&$ also maintained a detailed remedial programme of works on the buFldings in the estate. There is a specific reserve for this matter" The volatility in inves1ment markeis could be one of the factors that may give rise to a deterioration in the pension liabiLity and a consequential adverse impact on the College's free reserves" The continuing failure of academic fees to keep up with the rise in academic costs &8 well as the inevitable uncertainties with a potential si￿]1fteant change to the funding of Universities in EnglaniL rnean that the funding and costs associated with the College's core activity will need to be kept under constant review. Flltllre 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 pern]anent capitaI funds for fellowships and teaching and fvnds to augnent fL￿her support for students the core activity of the College, 8nd unrestricted funds, so the College may continue to invest in the future and strengthen its financial position. The College is looking to enhantt 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 resPo￿e as circumstances change. The Governxng Body has cotnrnenced the pmcess to elect a new President in succession to Dr El-Eria whose tern] of office ends on 30 September 2025. A report of Dr El-Erian's address to the Governing Body appears below tbis Financial Review which gives further inforn]ation on the matter. Conclusion While less acute than in the last few years, the College's financiaj position remains challenging and by no means comfortable. there is a great deal to be done to secure properly the long-term fllmre 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 commurrity- The College will regularly review its position as circumstances unfold, against its PTojections and its scenario plarining model, to ensure it responds appropriately, proportionately and on a timely basis to the situation in which it may find itself. OUT Base Case Scenario over the next few years is a retL]m to generating cash and ac]Meving an operating surplus. 29 QUEENS, COLLEGE, CAMBRIDGE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 301h JUNE 2024 In the medium term, the College would Iiope to increase its eiidowilleiit froin all sources by at least £1 00 million to £150 IMillion from its current position. The College will also continue to control costs ai)d manage resources to best effect to support it5 principal objective of providing a first-class edLication. It is nol at all certaiii that academic fees will be increased adequately to meet the full costs of educatiiig our Undergraduates and. indeed, there is a possibility tliey may be reduced. The College iieeds to plan and act accordiiigly. There is no doubt that the very challenging environment in which the College has operated in the last year will continue for tl)e foreseeable fuliire as the uncertainties it faces evolve and develop. The College will strive to use its resources wisely and efficiently in tliese dit"ficult circumstances. On behalf of the Governing Body AQI Dr M A El-Erian President Mr J Speiice Senior Bursar 30 Ib QUEENS, COLLEGE, CAMBRIDGE ANNUAL REPORT AND FINANCIAL STATEl￿ENTs FOR THE YEAR ENDED 30th JUNE 2024 Report oll The President's Address to the Governing Body. At the end of the 20 July GoverniDg Body meeting. and consistent with the College's Statutes, the President noted that he had been asked whether he would like Official Fellows to consider him servujg for another telin. He inforn]ed the Governing Body of his intention to step down when his 5-year tenure ends in September 2025. The President noted that he did not make this tough decision lighdy, and for good reasons. Queens, is his "happy place,," and the Presidency of the College is 'the best job" he has held. He h&8 felt at home in this community since he first arrived as a student in 1977, loved his time &s a student, and cherished every moment serving as President. Noting the progress made under the five slTategic initiatÉves - enhanced acadexnic excellence, improved infry&structure, wider participatio￿ sounder financial sustainability, and ￿￿re streamlined governance - the R'esident noted that Queens, had built on the progress made unda. Lord Eatwell, the Previous PresidenL to put the College in an even stronger position to deliver greater opportunities thd an ever-better experience for our community. This superb team effort has taken place against the backdrop in recent years of a pandemic, an inflation shocL and spillovers from tragic conllicts that have seen so ttLany lose their lives, their families, and their livelihoods. The President noted that his stepping down is not about another professional opportunity, or a newfound desire to learn a new hobby. RatheT. it was about family and the desire to be closer to his daughters in the U.S. Indeed, Spendi￿<¥ so much quality time with the Queens, family had brought holne to his wife and him the importance of spending more time with their daughters from whom they have been Separated by too vpst en oceen and too big a time difference. He concluded by conveying the depth of his gratitude, which he will expand on over the next year. It will not only be a time to look back and reminisce but also to look forward to all that this extraordinary community, to which he owes so muclL wijl still achieve. 31 otrEENS' COLLEGE. CAMBRIDGE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ELXIDED 30tb JUNE 2024 The Governin(r Body is responsible for preparing the Annual Report and fmancial statements in accordance with applicable law and United Kingdom Accounting Standards. The B ￿arIal Committee has day to day Tesponsibility, 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 accordaJ)ce with the College's Statutes. It is required to present auditsd fm8ncial statements for each f￿ancial ycaT, prepared in accordance with the Statutes of the University, for approval by the Governing Body which give a true a￿d 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: select suitable accounting policies and then apply these consistently. make judgements and estimates that are reasonable and prudent" state whether applicable accounting standards have been followed, subject to any materi3J departures disclosed and explained in the financÈal statements. The Governing Body is satisfied that the College has adequate resources to continue in operation for the foreseeable future. The financial statements are accordingly prepared on a going concern basis. Ihe Governing Body has tsJ(en reasonable steps to ensure that there are appropriate financial and management conlTols in place to achieve policy, aims and objectives and to safeguard the assets of the College and prevent 8nd detect fraud and otheI iLTegulaTities. Any system of internal control, however. is designed to manage rather than eliminate risk and can only provide re￿onable, not absolute, assurance against failuTe to achieve policy aims and objectives and material misstatement or loss. The Goveming Body is responsible for the maintenance and integrity of the corporate and financial infonnation included on the College's website. Legislation in the United KingdoEn governing the preparation and dissemination of fAnan¢ial statements may differ frotll legislation in other jurisdictions. 32 QUEENS, COLLEGE, CAMBRIDGE INDEPENDENT AUDITORS, REPORT TO THE GOVERNING BODY FOR THE YEAR ENDED 30fh JUNE 2024 Opinion We have audited the financial statements of Queens, College (the 'College) and its subsidiaries (the 'Group') for the year ended 30 June 2024 which comprise the Consolidated Statement of Comprehensive Income and Expenditure, the Consolidated Statement of Changes in Reserves, the Consolidated Balance Sheet, the Consolidated C￿h Flow Statement and notes to the financial statements, including a summary of SI￿71f1Cant accountin(Y policies. The fllwicial reporting framework that has been applied in their preparation is applicable law and United Kingdorn Accounting Standards, including Financial Reporting Stand￿d 102 The Financial Reporling Standard applicable in the UK and Republic of Ireland (UnAted K￿gdo￿ Geller￿ly Accepted Accounting ￿aCtice). In our Opinio￿ the financial statements." give a true and fair view of the state of the Group's and College's affairs as at JO June 2024 and of its incoming resources and application of resources for the year then cnded. have been properly prepared in ￿cOrdanCe with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accoTdance with the requirements of the Clwities Act 2011 and the Statutes of the University of Cambridge. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are fi￿her descrkbed in the Auditors, responsibilÈties foT 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 ¥tatements in the United Kingdom. including the FiJ]anci81 Reporting Council's Ethical Standard, and we have fulfilled OUT other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suificient and appropriate to provide a basis for our opinion. Conclusions re12ting to going concern In auditing the financial statements, we have concEuded that the Trustees, use of the going concern b&8is of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfornied, we have not identified any materi8J urAcertainties relating to events or conditions tha¢ individually or colle¢tiv¢ly, may cast significant doubt on the Group's OT 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 goiJ)g concern are described in th¢ relevant sections of this report. Other information The Governing Body are Tesponsible for the otlier inforniation. The other inforniation 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 repor¢ we do not express any form of assurance conclusion thereo QUEENS, COLLEGE, CAMBRIDGE tNDEPENDENT AUDITORS, REPORT TO THE GoVER1￿￿c BODY FOR THE YEAR ENDED 30th J[￿E 2024 In connection with our audit of the financial statements, OUT responsibility is to read the other inforniation 8n(L In doing so. consider whether the other infonnation is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audiL or otherwise appears to be materially isstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a mateiial mi5Statement in the fInan¢ial statements or a material misstatement of the other inforniation. If, b&sed on the work we have perfornied. we conclude that there is a material misstatement of this other inforn]atioo we are requir￿ to report that fact. We have nothing to report in this regard. Opinion on other matters prescribed by the Statutes of the University of Cambridge In our opinion based on the work Undertaken in the course of the audit: The contribution due from the College to the University has been computed as advised in the provisional assessment by the University of CaEnbridge and in accord8nce with the provisions of Statute G.II. of the University of Cambridge. Matter8 on which we are required to report by exception In the light of the knowledge and understanding of the GTOUP and College and its environment obtsined in the wurse of tkn audiL 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 Charlties (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: sufficient accounting records have not been kept. or the financial statements are not in a￿eernent with the accounting records. or we have not rcceived all the infonnation and explanations we require for our audit. Responsibilitles of the Governing Body As explakned more fully in the responsibilities of the Governing Body statement set out on page 28, the Governing Body are responsible for the PTeparation of the financial statetnent5 and for being satisfied that they give a true and fair ￿ew, and for such internal control the Governing Body deterniine is necesgary to enable the prepar8lion of fmancial statements that are free from material mis>tatement, whether due to fraud or ¢m)r. In preparing the financia] statements, the Governing Body ￿e responsible for assessing the Group's and College's ablkity to continue as a going Conce￿ disclosing, &8 applicable. matters related to going concern and using the going concern basis of accounting ullless tELe Trustees either intend to liquidate the Group or the College or to ceasc operations, or have no realistic alternative but to do so. Auditors, responsÉbilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frottl mateTial misstatemeThL whether due to fraud or error, and to issue an Auditors, report that includes our opirrion 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 QUEENS, COLLEGE, cAl￿BRIDGE INDEPENDENT AUDITORS, REPORT TO THE GOVERNING BODY FOR THE YEAR ENDED 30th JItNE 2024 arise from fraud or error and are considered material if. individually or in the aggregate, they could re&8onably be expected to infiuence the economic decisions of users taken on the basis of these fLnancial ststements. Irregularities, including fraud. are instsJ]ces of non-compliance with laws and re.(yulations. We design procedures in line with our responsibilities. outlined above, to detect material misstatements in respect of irregularitxes, including fraud. The exrtent to which our procedures are capable of detecting inegulariti¢s, 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 Eaws and regulations, was as follows: the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. we identified the laws and regulations applicable to the Group ttyough dtscussions with Trustees and other management, and from our knowledge and experience of the education sector. we obtained an understanding of the leg3[ and regulatory framework applicable to the Group and how the Group is complying with that fraTneworL' we obtained an understanding of the Group's policies and ￿OCedureS on compliance with laws and regulations, including documentation of any instances of non-compliance" we identified which laws and regulations were significant in the context of the Group. The Laws and TegLLlatiODs we considered in this context were Clwities Act 201 I, the Statutes of the University of Cambridge and taxation legislation. We assessed the required compliance with thesc laws and regulations as part of our audit procedures on the related fuwicial statement iterns. in addition, we considered provisio1￿ of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fimdaEnental to the Group's and College's ability to operate or to avoid material penalty. and identified laws 8nd regulations were communicated within the audit team regularly and the t¢am remained alert to instances of non-compliance throughout the audit We assessed the S￿ceptibilIty of the Group's fiTLancial statements to material Allisstatement, including obtaining UTLderstanding of how fraud mÉght occur. by: making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud" and considering the internal controls kn place to mxtigate risks of fraud and rAon-compliance with laws and regulations. To address the rÈsk of fraud through management bÈas and override of controls, we" tested journal entrtes to identify unusual transactions" assessed whether judgernents 8nd assumptions made in detetmining the accounting estimates set out in the accounting policy were indicative of potential bias. and investigated the rationale b¢hAnd significant or unusual transactions. In response to the risk of irregularitRes and non-compliance with laws and regulations, we designed procedures which included, but were not limited to.. agreeing fin8Jkcial staterJ)ent disclosures to underlying supporting documentation" reviewino minutes of meetings of those charged with goverDance' 35 QUEENS, COLLEGE, CAMBRLDGE INDEPENDENT AUDITORS, REPORT TO TIIE GOVERNING BODY FOR THE YEAR ENDED 30th JUNE 2024 enquiring of management as to actual and potential litigation and claÉTllS" and reviewing Correspondence with relevant regulators and the College's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and reglllations are from financial transactions, the less likely it is that we would become awexe of non- compliance. Auditing standards also limit the audit procedures required to identify non-compliance laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. fvIaterial misststements 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 fin2noial statements is located on the Financial Reporting Council's website at: www.frc.org.uklauditorsresponsibilties. This description foms part of our auditors, reporL Use of our report This report is made solely to the College's Governing Body as a body, in accoTd8nce WAth College's statutes, the Stathtes 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 requiTed to state to them in an Auditors, Report and for no other purpose. To the fullest extent pennitted by law, we do not a¢¢ept or assume responsibility to anyone other tban the College and the College's Goveming 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 CBI 2LA Date: LkO(aGW Peters Elworthy ¢E Moore is eligible to act as an auditor in tems of section 1212 of the Companies Act 2006. QUEENS? COLLEGE, CAMBRIDGE STATEIVIEwf OF PRINCIPAL ACCOUNTING POLICIES FOR TItE YEAR ENDED 30th JUNE 2024 Basis of preparation The financiat gcatements 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 stsndards. In additio￿ the fin8nciai statements comply with the Statetnent of Recomrnended Practice: Accountinir for Further and Higher Education (the SORP). The Staternent of Comprehensive Income and Expenditure includes activity analysis in order to demonstrate that all fee income is spent for educational pU￿oSe5. The aT￿lYSIS required by the SORP is set out in note 6. Basis of accounting The fJDAncial statements have been prepared under the historical cost convention, modified in respect of the treatment of Énvestments which are included at valuation. Basfis of consolidation The consolidated financial stat¢rnents include the College and its subsidiary undertakings. Details of the subsidiary undertakings included are set out in note 16. Intra-group balances are elirninated on consolidation. A separate balance sheet and related notes for the College are not included in the accounts because the College's subsidiary companies are a conference and banqueting trading company, and a visitor and branded merchandise trading company which donate their profits to the College each year. The baIanc¢ sheet for the College alone would not be materially different to the one included in the accounts. Recognition of income Academicfees Academic fees are recO￿lsed in the period to which they Telate and include all fees chargeable to students or their sponsors. Granl income Grants received from non-government sources (including research grants from non-government sources) are reCo￿lsed within the Consolidated Statement of Comprehensive Income aT￿ Expenditure when the College is entitled to the income and perfomiance related conditioT)s have been met. Income received in advance of perforniance related conditions is defekTed on the balance sheet and released to the Consolidated Statement of Comprehensive Income and Expenditure in line with such conditions being et. D6pzL2tiopzs and endow7ncnts Non-exchange transactions without perfomiance related conditions are donations and endowments. Donations and endowments with donor-imposed restrictions aTe Te¢ognised within the Consolidated Statement of Comprehe[￿1Ve Income and Expendithre when the College is entitIed to the income. Income is retained within restricted reserves until such time that it is utilised in line with such restri¢tAons at which point the income is released to general reserves through a reseTve transfer. Donations and endowments with restrictions are classified as restricted reserves additional disclosure provided within the notes to the accounts. 37 otfEENS' COLLEGE. CAIVIBRIDGE STATEIVIENT OF PRtNCIPAL AccoifNTING POLICIES FOR TItE YEAR ENDED 30th Th 2024 Donations endowments (continued) There are four main types of donations and endowments with reslTictions: l. Restricted donations objectiv¢. the donor has specified that the donation must be used for a particular 2. Unrestricted permanent endowEllents - the donor specified that the fLmd is to be pern]anently invested to generate an income stream for the general benefit of the College. 3. Ilestricted expendable endowments - the donor has specified a particular objective and the College onvert the donated surn into income. 4. Restricted pernianent endowments - the donor h&$ specified that the fund is to be pernianently invested to generate an income stream to be applied to a particular objertive. Donations with no re¥(ri¢tions are recorded within the Consolidated Statement of Comprehensive Inconle and Expenditure when the College is entitled to the income. Inveslment inconze and Cla￿ge in value of inveslm&nt assets Invesljnent income and change in value of investment assets is Tecorded in income in the year in which it arises and as either restricted or unrestricted income according to the ternts or other restrictions applied to the individual endoThinent fimd. Olher income Income is received from a n8nge of activities including accommodatiOT4 catering conferen¢esi job retention scheme ￿ant income and other services rendered. CL27FtbTidge Burs[￿ Sckeme In 2023-2024, payment of the Cambridge BursaTies to eligible students was made directly by the Sthdent Loans Company (SLC). As a consequence, Cambridge University reimbursed the SLC for the ￿11 amount and each College paid their portion (b&8ed on their own eligible students) to the University. The net payment of £201,441 is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows: Income (see note l) Expendittwe £176,825 £378,266 Foreign currency translation Transactions denominated in foreign currencies ate recorded at the rate of exchange ruling at the date of the transactions. Monetary assets 8nd Eiabilities denominated in foreign currencies are translaled into sterling at year end rates or, where there are forward forei￿] exchange contracL at contract rales. The resulting exchange differences are dealt with in the detennination of the cO￿prehensive income and expenditu￿ for the financÈal year. 38 QUEENS, COLLEGE, cAMBR￿GE STATEMENT OF PRINCIPAL ACCOUNTING POLICtES (coiYfINUED) FOR THE YEAR ENDED 30th JUNE 2024 Fixed assets Land L¥nd b24ildings Fixed assets are stated at cost less accurnulated depreciation and accumulated impairment losse5. Where p8rts of a fixed &8set 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 Constructio￿ and piior to valuatio are capitslised 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 indefll]ite usefijl life. Freehold buildings depreciated on a stratght Eine basis over their expected usefvl economic lives of 25-iO years. Buildings under construction are valued at cosL 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 propety shown in the baIance sheet includes the cost of land. All other assets are capitalised and depreciated over their expected useful life as follows: Furniture and fittings I 00/0 per annu Motor vehicles and general equipment 20 % per annum Computer equipment 33.)3 /0 per annum Heritag£ assets The College holts and Gonserves a nurnber of collections, exhibits, artefacts and other assets of historical, artistic or scientific importance. Heritsge assets acquired before l SE July 1999 have not been capitalised since rejiable estimates of cost or Value are not avaxlable on a cost-benefit basis. Acquisitions since l July 1999 have been capitalised at cost or, in the case of donated assets, at expert valuation on receipt. Heritage &8sets are not depreciated since their long economic life and high residual value mean t1￿ any depreciation would not be material. Illvestments Fixed asset investments ￿e 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 8nd eliminated on consolidation. Stocks Stocks are stated at the loweT of cost and net realisable value after making PTovision for slow moving and obsolete items. Provisions Provisions are recognised wh¢n 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 w.ill be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. 39 QUEENS, COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUI4ITING POLICIES (CONTINUED) FOR THE YEAR ENDED 30th JUNE 2024 Contingent liabi]ities and assets A contingent liability arises from a past event that gives the Coll¢ge a possible obligation whose existence will only be confirrned by the occurrence OT otherwise of lln￿rtaIn future events, not wholly within the control of the College. Contingent liabilities 8Jso arise in circumstances where a provision would otherwise be made but either it is not probable that an outtlow of resources will be require(L or the amount of the obligation caTllWt be measured reliably. A contingent asset arises where an event has taken place that gives the College a possible asstrc whose exi>(ence will only be confimied by the OcKU￿ence OT otherwis¢ of uncertain future events not wholly within the control of the College. Contlngent assets 8nd liabilities are not recognised in the balance sheet but are disclosed in the notes. Financial instruments The College has elected to adopt Sections I l and 12 of FRS 102 in respect of the recognitioT4 measurement, and disclosure of financial instruments. Financial assets and liabilities are reCO￿lISed when the College becomes party to the contractual provision of the instnllnent, and they are Classified according to the subgcance 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 eitheT to settle on a net basis, or to realis¢ the asset and settle the liability simultaneo￿ly. Financial assets Basic financial ￿Sets include trade and other receivables, cash and cash equivalents and inveslments in commercial paper {i.e. deposits and bonds). These assets are initially recognised at transaction price unless the arrangement constitutes a financing transaction, Mthere the transaction is measured at the present value of tbe future receipts discounted at a m￿ket rate of interest. Such assets are subsequently canied at amortised cost using the effective interest rate method. Financial assets are assessed for indicators of impairnient at each reporting date. If there is objective evidence of impairmenL impairnient Ioss is Teeognised in the Statement of Comprehensive Income. For financial assets carried at amortised cost the impairnient loss is the difference between the carrying arllount of the &8set aTLd the present value of the estimated future c&%h flows, discounted at the asset's original effective interest rate. Other fmancial &fjsets, including investments in equity instruments, which are not subsidiarie5 or joint ventures, are initially Me￿ured at fair value which is typically the transartion price. These assets are subsequently ca￿Led at fair value and ¢bantres in fair value at the reporting date are recognised in the Statement of cO￿prehenSive Income. WheTe the inveslment in equity InstrU￿entS Is not publicly traded and where the fair value catmot be reliably measured, the assets are measured at cost less irnpairnient. Investments in propety or other physical assets do not constitute a financial instntment and are not included. statement of Princi aI Accoulltill Policies FinanciaK assets are de-recognised when the contracttjal rights to the cash flows from the &sset expire or are settled or substantially all of the risks and rewards of OWTJership transferred to another party. QUEENS, COLLEGE, CAMBRIDGE STATEMENf OF PIIINCIPAL ACCOUNTING POLICtES (CONTINUED) FOR THE YEAR ENDED 30" JUNE 2024 Statement of Princi al Accountin Policies Financial Instruments (continued) Fin8J]cial ￿Sets are d¢-recognised when the contractual rights to the cash flows from the &8set expire or are settled or substantially all of the risks and rewards of ownership are transferred to another paty. Financial LiabitRties Basic financi￿ liabilities include trade aT￿ 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 pakd on the establishment of loan facilities are reCO￿]sed as trallsaction costs of the loan to the extent that it Is probable that s(Trme or all of the facility will be drawn down. Trade payables are obligations to pay for good5 or services that have been acquifftd in the ordinary course of b￿SinesS from suppliers. Accounts payable are cl&ssRfied as current liabilities if payment is du¢ within one Ye￿ 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 fonvard foreign exchange contracts. are not basic financi￿ instruments. Derivatives are initially recognised at fair value on the date the derivative conlrnct is entered into and are subsequently re-meesured at their fair value at the reporting date. Changes in the falr value of derivatives are recog]ised in the Statement of Comprehensive Income in finance costs or finance income as appropriate, ll￿eSs they are included in a hedgin£ amngement. To the extent that the College enters into foTwaTd 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 transactRon price on the date of inception of the contracts. Subsequent valuations are considered on the basis of the forward rates for &ose unsettled contracts at the reporting date. The College does not apply any hedge accounting in respect of forward Forei￿ exchange contracts held to manage cash flow exposures of forecast transactions denominated in foreign currencies. Financi￿ liabilities aTc de-Tccognised when the liability is discharged, Cancelle￿ or expires. Taxation The College is a registered charity (number I lJ7495) and also a charity ￿thin the meaning of Section 467 of the Coryoration Tax Act 2010. A¢¢ordingly, the College is exempt from tsxation in respect of income or capitsl gains received within the categories covered by Sections 478 to 488 of the Corporation Tax Aot 2010 or Section 256 of the Taxation of ChargeabEe Gains Act 1992 to the extent that such income or gal￿ are applied to exclusively charitable purposes. The College receives no similar exemption in Tespect 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 41 QUEENS, COLLEGE, CAMBRTDG sTATEl￿ENT OF PRINCIPAL ACCOUNTING POLICIES (CONTIfwED) FOR THE YEAR ENDED 30tb JUNE 2024 as advised to the College by the University is based on an assessable amount derived from the value of the College's assets &8 at the end of the previous financial year. Pension costs The College participates in two funded defLned benefit pension schemes, Cambridge Colleges Federated Pension Scheme (CCFPS) and the Universlties superannu￿ion Scheme (USS) Pension costs are accounted for on the basis of charging the cost of providing pensions over the period duTing which the College benefits from the Fellows, or employees, services. Universities Swa}￿￿0t10n Scheme (USS) Througbott the current and preceding periods, the Universities Superannuation Scheme was a defined benefit only pension scheme until J l$t March 2016 which was contracted out of the State Second Pension (S2P). The assets of the scheme are held in a separate trustee-administered f￿d. 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 &ssociated with other institutions. employees and is unable to identify its share of the underlying &8sets and liabilities of the scheme on a consistent and reasonable basis and therefor< as required by Section 28 of FRS102 "Employee benefits" accounts for the scheme as if it were a defined contribution scheme. As a resulL the amount charged to the income alld expenditure account represents the contributioDs payable to the scheme in respect of the accounting period. Since the institution ha5 enter￿ into an agreement (the Recovery Plan that detern]ines how each employer withiJ] the scheme will fund the overall deficit), the College also recognises a liability for the contributions payable that arise from the agreement to the eMent that they relate to the deficit and the resulting exp¢nsc in ihe income and expenditure account. Cambridge Colleges FederatedPension Scheme (CCFPS) The College participates in the C8rnbridge Colleges Federated Pension Scheme (CCFPS). a defined benefit scheme which is externalEy funded and until 315t March 2016 was contracted out of the State Second Pension (S2P). As CCFPS is a federated scheLlle and the College is able to identify its share of the underlying assets and liabilities, the College values the ￿nd as required by Section 28 Employee Benefits of FRS102 'Retirement Benefits,. As a resulL the amount Charoed to the Staternent of Comprehensive Income 8nd Expenditure represents the amount calculated under FRS102 guidelines. Employment benefits Short term employment benefits such as salaries and compensated absences are Tecognised as an expense in the year in which the employees rendeT service to the College. Any material unused benefits are accrued and rn￿ured as the addItiOT￿l atllount the College expects to pay as a resujt of the unused entitlement. Reserves Reserves are allocated between restricted and unrestricted reserves. Endowment reserves include balances wl)ich, iJJ respect of endowment to the College, are held as pemianent funds, which the College must hold to perpetuity. Restricted ieserves include balances in respect of which the donor has desi￿ated a specific purpose and therefore the Colle(Te is restricted in the use of these funds. 42 QUEENS, COLLEGE, CAIVJBRIDGE STATEMINf OF PRINCIPAL AccoifNTING POLICIES (CONTINUED) FOR TILE YEAR ENDED 30th JUNE 2024 Critical Accountin Estimates and Jud en)ents The preparation of the College's accounts requires man￿(reMellt to make judgements, estimates and &8sumptions that affect the application of accounting policies and ￿e￿rted amounts of &%sets and liabilities, income and expenses. These judgements, estimates and I￿OtIated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be re&sonable under the circumstances. The resulting accounting estimates will, by definitio￿ seldom equal the related act1￿1 results. Management consider the areas set out below to be those where critical accounting judgements have been applied and the resulting estimates and &ssumptions may lead to adjusknents to the future carrying amounts of assets and liabilities. Income recO￿ltiOn- Judgement Is applied in detennining the value and timing of certain income items to be recOgniS￿ in the accounts. This includes detennining the appropriate recognition timing for donations, bequests and legacies. In general, tbe later are recognised when at the probate stage. Useful lives of property, planL and equipment - Propety, plant and equipment represent a Si￿lfICant proportion of the College's total assets. Therefore, the estimated useful lives can have a significant impact on the depreciatÉon charged and the College's reported perforniance. Usefill lives are deterniined at the time the asset is acquired and reviewed regularly for appropriateness. The lives are based on historical experiences with Simil￿ assets, Professional advlce and anticipation of future events. Details of the carrying values of property, plant and equiprtLent are shown in page 50. Investtnent propety - 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 irnp￿ted by a y￿Kety of factors including maTket and other economic conditiODS. Retirement benefit obligations The cost of defAned benefit pension pkans are detemiined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and ￿tllre pension increases. Due to the complexity of the valuation, the underlying assumptions and the long-tern nature of these plans, such esti]nates are subject to SI￿lficallt uncertainty. Further detaits are given in pages 59 - 64. Management is satisfied that Universities Superannuation Scheme meets the definition of a multi-employer scheme and has therefore reCO￿ASed the discounted fair value of the contractual contributions under the nding pl8ll in existence at the date of approving the accounts. The latest USS triennial valuation no longer requires a deficit recovery plan and liability previously recognised on the balance sheet has been reversed. Further detsils set out in pages 61 to 63." Consolldaled Statenieiit of C'oinp?'¢lieiisfve Ititol￿¢ Ei xpeii(litiii'e FOR THL YEAR TO 30 JUNI;, 2024 2023-24 202¥23 Urnrfr5tr1Glod Ro$triGlod É'ooo roo En41owrvont £'ooo Total £'oDo Unmtvlctod RogtrI￿8d roo £'ooo Endowmont Total £'ooo Not A¢￿1¢MI¢ Fee$ A¢¢oniiiiodAtion, C&t¢linu iiidconfEf¢l)CeS 4,599 7,083 1,006 1,906 287 4.699 7.063 3,709 4,678 6,141 4U8 1.621 148 4.678 375 I,Q10 2.327 12,9241 277 2,528 12,8201 3,213 287 148 To1&1 i1￿￿￿¢￿ i5 The toral Trustee sa]aTie5 were £1.746.197 for the year{202J £1.622.652) The ttuste¢$ ￿ts￿ paid oth¢r taxabl¢ b¢n¢fits linduding ass(riated employerNational Jnsuramce cofttnl)utions and cmployer contnbutiorjs to ￿l￿n5) ÉotaUed¢ J 8.416 for th¢year1202J'. £il.260) The Collge h& one tradiJ8 and one dortnant subsidiary undertakin& both of whi¢h gre ¢onsolidated into these acco￿ts. Bi)th subsidi Unde￿Ing5 are lo￿1￿ OWLed bythe colle.￿ and are registered and operattng in Eng]and and W81¢s. The College has takeLJ adv$￿tast of the ttxtnkption withill section 3) of FRS 102 not to disdos¢transartions with wholty oMry]ea group companies that are related panies. QUEENS, COLLEGE, cAl￿BRIDGE STATEMENT OF PRTNCIPAL AccouNfING POLICtES (CONTINUED) FOR THE YEAR ENDED 30th JUNE 2024 irNIVERsIfIES SUPEll￿NUATION SCHEME Significant accounting policies The institution participates in Universities SupeTannuation Scheme. The ￿et$ 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 &8sociated with other institutions, employees and is unable to identify its share of the underlying &ssets aud liabilities of the scheme on a consistent and reasonable basis. As requiied by Section 28 of FRS 102 "Employee benefits", the institution therefore accounts for the scheme as if it were a defined contribution scherne. As a result the amount charged to the profit and loss account represents the ContributioT￿ payable to the scheme and the deficit recovery contrlbutions payable under the scheme's Recovery Plan. Where a scheme valuation deterniines that the scheme is in deficit on a technical provisions b&8is (as was the case following the 2020 valuation), the trustee of the schetlle Tnust agree a Recovery Plan that detennines how each employer ￿thin the scheme will fund an overall deficiL The ]￿titUtIon recognises a liability for the contributions payable that arise from such an agreement (to the extent that they relate to a deficit) with related expenses being recognised through the income statement. Further disclosures relating to the deficit recovery liability can be found In Note 16. Critical accounting judgements FRS 102 makes the distiJJction between a group plan and a multi-employer scheme. A group plan ￿nSistS of a GollectRon of entities under common control typi¢ally with a sponsoring employer. A ttlulti-employer scheme is a scheme for enttties not under common control and represents (typically) an Andusty-wide scheme such as Universities Superannuation Scheme. The accounting for a multi-employer scheme where the employer entered into an agreeTnent with the scheme that detern]ines how the employer will fund a deficit results in the reCo￿lt10n of a liability for th¢ contributions payable that arise from the agTeement (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. PELYSION COSTS The total credit to the profit and loss account is £1.207,892 (202) charge: £9,067). Deficit recovery contributions due within one year for the iDstitution are £50.699 (2023: £95.746). A deficit recovery plan was put in place as part of the 2020 valuatiow which required payment of 6.20/0 of salaries over the period l April 2022 until il March 2024. at which point the rate would InCre￿e to 6.3 %. As set out in Note 16, no deficit re¢ov¢ry plan was r4uired under the 2023 valuation be￿use the scheme was in surylus on a technical provisions basis. The institution was no longer required to make d¢fLcit recovery contributions from l January 2024 and accordingly released the outstanth'ng provision to the profit and 10&8 account The latest available complete actuarial valuation of the Retirement Income Builder is &$ al ? l March 202J (the latest valuation date), which was carried out using the projected unit method. sin￿ the institution cannot identify its share of USS Retirement Income Builder (d¢fmed benefit) assets and liabilitÈes, the following disclosures reflect those relevant for those assets and IKabi]ities as a whole. 61 QUEENS, COLLEGE. cAl￿BRIDGE STATEIKENT OF PRJNCIPAL ACCOUIfflNG POLICIES (coNfINUED) FOR THE YEAR ENDED 30th JUNE 2024 The 202) valuation was the seventh valuation for the scheme under the scheme-specxfic fimding regime introduced by the Pe￿IOnS Act 2004. which requires schemes to have sufficient and appropriate assets to cover their technical provisio￿ (the statutory funding objective. At the valuation date, the value of the assets of the scheme £73.1 billion and the value of the scheme's technical provisions was £6).7 billion indicating a surplus of £7.4 billion and a funding ratio of I I 10/0. The key f￿￿1claI assumptions used in the 2023 valuation are described below. More detsil is set out in the Statement of Funding Principles: (uss.eo.uklabout-us/valuation-and-fundinglstatement-of-funding- principles). CPI &ssutnption Terni dependent rates in line with the diff¢r¢nce between the Fixed Interest and Index Linked yield curves less- I % pa to 2030, reducing linearly by O. l % pa from 20JO Beneflts with no ¢ap- Pension increases (subject to a floor of 00/0 CPI assumption plus 3bps Benefits subject to a'soft cap" of 5% (providino infiationary increases up to 5Q/o, and half of any excess infiation over 50/0 UP to a m&ximum of I OO/o): CPI assumption minus 3bps Fixed interest gilt yield curve plus: Discount rate (forward rates) Pr¢-retiremenÈ: 2.50/0 pa Post retirement: 0.90/0 pa The main demographic ￿sUMPtIonS used relate to the raortality assumptions. These assumptions 8re based on analysis of the scheme's experience carried out as part of the 2023 actuarial valuation. The mortality assumptions used in these figures are &8 follows: 2023 Valuation lortality base table 101 % of S2PMA 'light' for males and 950/0 of S)PFA for females. Future improvements to mortality CM12021 with a smoothing parameter of 7.5, an initial addition of 0.41/1 o pa, l OQ/o W20?Q and w2021 parameters and a long-terni improvement rate of1.8% pa for males and 1.6(/bo for females. 62 QUEENS, COLLEGE. CAMBRIDGE NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30" JUNE 2024 The current life expectstions on retirement at age 65 are: 2024 2023 Males currently aged 65 (years) Females currently aged 65 Cvears) 24.0 25.6 25.6 Males currendy aged 45 (years) Females currently aged 45 fyeaTS) 25.4 27.2 26.0 27.4 QUEKNS, COLLEGE, c111￿BRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (CONTINtFED) FOR THE YEAR ENDED 30th JUNE 2024 CAl￿BR[DcE COLLEGES FEDELiTED PENSION SCHEME The College operates a defined benefits plan for the College's employees of the Cambridge Colleges, Federat¢d Pe￿IOn Scheme. The liabilities of the plan have been calculated at 30 June 2024 for the purposes of FRS102 using a valuation system designed for the Management Committee, acting as Truste¢ of the Cambrid£e Colleges, Federated Pension Scheme, but allowing foT the different assumptions required under FRS102 and tak)￿g fully into consideration changes in the plan benefIt structure and memb¢rship since that date. The principal actLwiai assumptions at the balance sheet date were &5 follows: 30 June 2024 30 Julle 2023 Discount rate Increase in salaries 5.200/0 3.30/0 To 20JO: 2.850/0 Fmm 20Jl: 3.75% 3.350/0 To 20JO.' 2.i5Y From 2031: 3.250/0 RPI assumption CPI assumption J.400/0 2.80%, Pension increased in payment (RPI Max 5 % pa) Pension incre￿eS in payment (CPI Max 2.5(/Tro pa) *For one year only, we have assumed that RPI will be 90/0 and CPI will be 7 /0. The caps under the Rules plied to assumed pension increases. 3.30%. The underlying mortality assumption is based upon the standard table known as S3PA on a year of birth usage with CMI 2023 future improvement factors and a long-terni rate of future improvement of 1.250/0 per annum, a Standard smoothing factor (7.0) and no allowance for additional improvements (2023: S3PA with CMI 2022 future improvement factors and a long-terni ￿tllre improvement rate of 1.250/0 per annum, a standard smoothing factor (7.0) and no allowance for additional itnprovements). This re5lllts in the following life expectancies: Nlale age 65 now has a life expectancy of 21.4 years (previously 21.4 years). Female age 65 now has a life expectancy of 23.9 years (previously 2i.9 years). Male ￿e 45 now and retirin(T in 20 years has a life expectancy of 22.6 years (previously 22.6 years). Female age 45 now and retiring in 20 years has a life expectancy of 25.3 years (previously 25.J years). 64 QUEENS, COLLEGE, CATrIBRIDGE STATLMENT OF PRtNCTPAL ACCOUNTING POLICIES (CONTINUED) FOR THE YEAR ENDED 30th JUNE 2024 PENSION SCHEMES (CONTINUED) The assets in the Scheme and the expected rates of return were: Long-terrn Long-tenn L012g-tern7 rate o rate o rate o relurn return return expected al Value at expected at val￿ expgcled at Vdue at 30/06/2023 30/06/2024 30/06/2023 30/06/2023 30/06/2022 39/06/2022 Equities and Hedge Funds Cash, Bonds & Net Current Assets Propety 9,273,574 8,467,176 8,84J,100 6,857,914 10,257,694 6,706,954 2.419 194 2,346,128 2.761.687 Totsl 20,159,944 18,047,142 19 726,335 The following results were measured in accordance with the requirements of FRS102 2024 2023 2022 Total market value of assets Present value of Scheme liabilities 20,159,944 21867 505 18,047,142 20 850 39J 19,726,3)5 2) 294 743 Sutplus/(deficit) in the Scheme (1,707,561) (2,SOJ,251) (3,568,408) The amounts recogni5ed in income and expenditure are as follows: 30 June 2024 30" June 2023 In staff costs: Current service cost (net of employee contributiorLS) 516,351 706,478 In endowment and investment income: Inter&qt cost Expected return on pension scheme assets 1,090,488 (941.293) 89J,244 754,999 Net return 149,195 lJ8,245 Actual return on pension scheme assets 1,064,J88 (2,487,142) QUEENS, COLLEGE, CAMBRIDGE NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th JUNE 2024 PENSION SCHEMES (CONTITrIUED) Changes in the present value of the plan liabilities are as follows- 30 June 2024 30 Jllne 2023 Present value of plan liabilities at beginning of period Current service cost (including employee's contributions) Lnterest on plan liabxlities Actuarial (gains) losses (Gain)Aoss on plan changes CurtailLnent (gain)Iloss Benefits paid 20,850,J93 516,351 1.090,488 (253,942) 23,294,743 1,021,287 893,244 (3,726,587) (718282) Present value of plan liabilities at end of period 21.867.505 20.850 3 Changes in the fair value of scheme assets are as follows: 30 June 2024 30 June 2023 Market value of plan assets at beginning of year Contributions by the College Additional contributions by members (includRng AVCS) Benefits (and expenses) paid Interest on plan assets Return on assets, less interest included in Prof.it & Loss 18,047,142 1,451,007 382,497 (785,090) 941,293 12J,095 19,726.JJ5 1,2J4,057 i14,809 (740,917) 754,999 J.242.141 larket value of plan &ssets at end of year 20,159,944 18.047.142 Amounts for the CUTrent and previous four periods are &s follows: 30 June 2024 30 June 2023 30 June 2022 30 June 2021 30 June 2020 Present value of plan liabilities (21,867,505) (20,850,393) (2J,294,743) (J I,J97,694) (JO,798,169) Market value of plan assets 20,159,944 18,047,142 19,726,335 22,096,264 20,021,557 Su￿lUSI{deflc]tj (1,707,561) (2,803,251) {3,568,408 9,301,4JO) (10,776,612) Experience adjustments on plan llabilities (192.689) 2241,885 1,108,641 (459,639) {54,536) Change in assumptions underlying present value of plan liabilities (47.869) (5,949.985) (10,597.748) (4L6.040) ().026.582) li QUEENS, COLLEGE, cAl￿BRIDGE NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th JUNE 2024 The plan h8s no investments in property occupied by assets used by or fLnancial instruments issued by the College. Funding poliey Actuatial 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 actuatial assumptions underlying the actuarial valuation are different to those adopted under FRSIO2. Trie last such valuation was at J 1° March 202J. 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 ¢ornmits the College to paying contributions to fund the shortfall. These deficit reduction contrtbutiorjs incorporated into the plan's Schedule of Contributions dated 7 June 2024 and a￿ as follows: AnnuaI contributions of not less than £274247 per annum, payable for the period to Isr July 2024 to 31" January 20JO. These payments are subject to review following the next fimding valuation, due as at 1st March 2026. 67