2021-06-30-accounts

Charity Registration Number 1137497 HOMERTON COLLEGE ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

Reports Page Reference and administralwe informalion Trustees, resx)rl (incorporating Ihe operating arKI financial review) Corporate governan¢e slalemenl 20 Slalemenl of internal contr 21 Slalemenl ol CoLtncil's responsibililies 22 Independent auditor's report 23 Financial slatements Consolidaled Slalement of Comwehensive Income and Expenditure 25 Consolidated slalemenl of changes in reserves Balance sheets 27 Consolidated slalemenl of cash flows 28 Principal accounting policies 29 Notes lo the financial slalemenls 36 Homerlon College 1

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 30 JUNE 2021 Registered address Hills Road Cambridge C82 8PH Charlty registration number- 1137497 Members of Council (Trustees) Ex oflicio Mgmbers Principal Prol Geoffreyward (ret￿ed 30 Seplember 2021) Lofd Woolley of Woodford from 1 Oc10￿r 2021 Dr Louise Joy Dr Penelope Barton Ms Deborah Gritfin Vice Principal Senior Tutor Bursar Elected Follows (for 3-year terms to 30 Septernber) Dr Joel Challen120201 Dr Simone Hochgreb {20201 Mr Mallhew Moss120211 Dr Frarkcesca Moore {2021 } Dr Juliana Cavalcanli120221 Ms Liz Osman120221 Dr David Clrfford120221 Dr Julia Kenyon120231 Dr Timos Kipouros12023-second term) Dr Paul WanNick12023- second term) Dr Paul Ellioll12024 - second lerml Co-opted Fellows (not Trustees) Or Georgie Horrell Dr Melanie Keene Student Members Inot Trustees) JCR President MCR President Joseph Saxby Belhan Morris Zelna Weich Sensor Offlcers Head of House Prof Geoffrey Ward Irelired 30 September 2021 } Lord Woolley of WocKlford from l October 2021. Dr Louise Joy Df Penelope Barton Ms Deborah Griffin Di Paul Ellioll Di Georgie Horrell Graduale Tutor Dr Melanie Keene Secretary lo the Governing Body and Council Dr Simon Wadsley Vlce Principal Senior Tutor Bursar Admissions Tutors Homerlon College 2

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 30 JUNE 2021 Auditors Price Bailey LLP Tennyson House Cambridge Business Park Cambridge C84 OWZ Banker$ Lloyds Bank plc Endeavour House Chivers Way Hislon Cambridge CB24 gZR Solicitors Taylor vin1￿$ LLP Merlin Place Milton Road Cambridge CB4 ODP Property advisers Carler Jonas 6-8 Hills Road Cambridge CB21NH Bidwells Bidwell House Trumpinglon Road Cambridge CB2 9LD Investment managèrs Rothschild & Co New Court Sl Swilhin's Lane London EC4N 8AL Homerlon College 3

Ti'iistees, report {incoipoTating thè operating and financial review) Year lo 30 Junp. 2021 SCOPE OF THE FINANCIAL STATEMENTS The truslee5 of Homeilon College I'lhe College'l present Iheir retx)rl incorporating Ilie operating and financial review. together vmlh the audited financial slaleinenls for the year ended 30 June 2021. These cover Ihe consolidated operalions of Homerion College and ils subsidiaries. The financial slalemenls liave been prepared in accordance wilh the accountin9 policies sel out on pages 29 10 35 and comply with applicable laws, the requiiemenls of Ihe Recommended Cambridge College Accounts IRCCAI, the Sialemenl ol Recommended PraCt￿e.. Accounting for Further and Hoher Edu¢alion120151, and FRS 102 'The Financi31 Re￿ling Standard appliable in the UK and Republic of Ireland,. GOVERNANCE AND ORGANISATIONAL STRUCTURE Homerlon College is an Independent College of the University of Cambridge. The College is governed by ils Royal Charler and ils Slalules and Ordinances. which may be found on the College website. The Fellows of the College comprise the Goveming Body which has the "ullimale aulhorily in the government of the College as a place of education. religion, leaming and research., and ils powers are sel out in the ChaTleT and Sialules. The College CIKJncil is established by Ihe Governing Body lo exercise on Fis behaw such powers as are sel out in the Slalules and Ordinances, other than those reserved for exercise by the Governing Body itself. The membeis of the CouncFJ are deemed lo be the Irustees of Ihe College for the purpose of charity law, and ils composition is sel out on page 2. A number of commillees have been established lo advise the Council in carrying out ils dtslies, and Ihe5e ale sel oul in the Corporate Governance Statement on pages 19 and 20. number of subsidiaries and other signrficanl inveslmenls have been established lo urKiertake trading operations for the benefil ol the Cdlege (see also note 12>.. Colophon Limiled undertakes commercial conferences and also operates the College • HBC 1 Limited and Colokale LLP were incortM)raled during 2013-14 in order lo facililale Ihe development of the residential efemenl of Homerton Gardens which is adjacenl lo Ihe main College sile. This development is now compleled and during the year lo 30 June 2020 HBC1 was dissolved. • Ward Grrfin LLP is a partnership belween Hometlon College and Sl Mary's School. Cambridge. established in Awil 2020 for Ihe development and management of the spotls lields owned by Sl Mary's Schod and leased lo Ihe partnership for 66 years. AIMS AND OBJECTIVES OF THE COLLEGE The objects of the College. as sel oul in ils Royal Charter. are- for the putAic benefit lo advance education. religK)n, learning and lesearch wilhin the University of Cambridge., b. for the putlic benefit to provide for persons. who shall be members of the Universily. a College wherein Ihey may work for degrees of Ihe Universily of Cambridge. Homerton College 4

Trustees, report {incorporating the operating and financial w8viewl Year lo 30 ,lune 2021 PUBLIC BENEFIT In sellin9 the obje¢lives and planning Ihe &livilies of the College, the COU￿11 has given. careful consideralion lo the Charity Commtssion's general gU￿a￿e on public benefit. College Plan The College is in Ihe Ihird year. of five years, of its College Plan. which was approved by the Govertbing Body in November 2018. The Han is underpinned by Ihe aims of the College lo.. • Excel by the slatbdards of Collegiate Cambridge,. • Ulilise our position as the ￿e$l C￿lege so as lo be seen lo serve and reflect society s current and future needs- Vi8w and use our appeal lo students from a wde variety of backgrounds as dislinclive slrenglh.. Support the PGCE. and training for the professions. From OclobeT 2020. ￿￿th Ihe Intrc￿U¢t10n of Architecture. the College offers all the Triposes f¢N undergiaduales There 15 a need lo expand the Fellowship particularly through lh6 engagement of University Teaching oificers 'UTOs" in all major subject areas. The Fellowship compT15ing the Governing Body now numbers 63 of whcrtn 46 have been appointed sIr￿e 2013. The C(Alege has also created an Associale Fellowship, for dislingui5hed irKlividuals whose corilinuing association with the College has demonslrable berbelil and welcomes Ihose of post-d￿tOr￿1 status as Research AssDCFales lo participate in the community as members of the College. Durin9 2019 Homerlon Changemakws was launthed lo offer an exlra-¢urrKular support programme lo Homerlon students Ihroughoul their degrees. Whilst Ihis has by necessity been mostly on-lifie for the past 18 months. the programme has proved an invaluable support lor mariy of our students. In July 2020, the College appoinled a Website and InlerTral Communicalions Manager and launched a new website in September 2021. This involved revisiting and re-evaluating our vision and values of the College. Educatlon Sludenl membership of the Cdlege was as [￿lOw$.. Academic year ended 30 June 2019 2020 2021 Undergraduates 577 586 615 Poslgraduale Certificale in Education {PGCE) Higher Degree students 202 165 181 Full time Parl lime 162 243 188 249 183 213 Total 1.184 1,188 1,192 Homerton College 5

Trustees, report {incorporaling the opwatlng and financlal revlew) Year lo 30 June 2021 PUBLIC BENEFIT (Continu￿1) Achlevement$ The mulliple achievements ol the College members are listed exlensively in the College's Annual Review. Nthich is awdilable al hllps.. htt '.Ilwuu.cornlhom&loThld￿￿I20.4.2O21 . I￿rn Academ￿ years 2019-20 and 2020-21 have been exlraordinary due lo the COVID-19 pafidem￿. Whilst the 2020 final-year undergraduale degree results were the besl in the College's history. wilh a Ihird of Finalisls gaining a Firsl-class degree. and no sludenl gradualiTrJ wlh a result lower than a 2..1 Ihis rdecled a near nomial period of study until the final term and the move lo on4ine assessment and away from traditional exam papers in lecture halls. somelhirKJ ihal may have benefrtled many sludenls. The academ￿ ￿ar 2021>21 was far more disnJpled wlh many periods ol isolation during Michaelmas. and Ihe Mai￿llY of sludenls sludwng at home in variable circumstances during Lent term. Whilsl most relurned for the Easler term. studwng and exams look place mostly in their bedrooms. The results of finalists in 2021 reftecled a highw proportion of firsts than previous years {excepl 2020) wth the percentage of firsl and 2.'1s as in previous years (bar 2020 vthen il was much higher)- Student support The College commi15 to offering pla￿ lo apFAicants from 8 broad range of backgrounds who may have received very variable preparatlon al school. The College provides an exlended induction for incomiThJ firsl years and a number of sludenls are offered pre- sessionals in malhemalics lor non-fflalhs courses. To ensure all sltjdenls can fully participate in all the University and Cdlege has lo offer the College participales in and has insligaled a number of schemes. Through a scheme operaled in common ￿￿th the University and olher Cambridge colleges, the College provides bursary support lo urKlergraduale students of limited financial means. The Cambridge Bursary Scheme is approved by the OffKe of Fair Access IOFFAI and provides benefits al subslanlially higher level than the minimum OFFA requifemenl. During the year. 15012020.. 144} Homerton students benefited from the scheme, lo Ihe value of £484,28312020.' £409,288). College off￿er$ have also supprxled the various slrands of the Universitys Sludenl Support Initiative and the College continued parlicipation in the Pilot Top- Up Bursw Scheme thich benefited 161 Homerton students in 2021 to the value of £108,910 {2020'. 108 students to the value of £81.4701. This was in parl funded by Trinily College. From October 2021, this will be replaced by an enhanced Cambridge Bursaryscheme for fir51 years although College has commrtled to paying the lop-up lo Ihe remaining years. The College also operates ils ovm Hardship Fund and awards a number of other granls, as well as prizes for academic achievement. The lolal cost of such financial support was £185,247 {2020.. £249.726}. The Cdlege's Finance Tulor seeks lo support sludenls in need not only from College resources but also a range of UniversFty and olher Funds. Researth Granls. for poslgTaduales. were used. lo fund an expanded criteria of expenses. rec¢yJnising Ihal fees and Ifavel lor conferences was limited by Ihe pandemic. Eligible PhD students were supported in applying for UKRI Covid-10 exlensKin funding and the University's owr¢ poslgraduale CAS stheffle for self4unded students. Homerton College 6

Tiu$tees' report (incorporating th8 oporating and linanci81 review) YeaT 10 30 June 2021 Student support (conlinued) All under9radL*ales have a Director of Studies who meet with and monitor students, Academic development. One-lo-one support is available lor any sludenl who requires assistance wlh writing skills, malhs support or lime management and personal organisalion. Dlte lo the pandemi¢ Ihere was a limited number of subject dinners held during the year. These bring logelher utKlergraduales. poslgraduales. Fellows and staff. and in some cases alumni, for further discussion of the respective subjects. All students have a Tutor for pasloral support. During the year, Ihe roles and reswnsibililies of both undergraduate and poslgraduale luloTS was reviewed. FOT the Academic Year 21-22 this resulted in an increased number of undergraduale Tutors and a reslrucluring of postgraduate supporl with m(Ke luloTS covering all sludenls whereas previously a PGCE Tutor and two Graduate Tutors for parl-time graduate sludenls h&1 suptK)rted the Graduate Tutor. There is also an increased dtrversily of luiors which was an aim of the restructuring. The College runs a Personal Development Programme open lo all undergraduate and graduate sludenls. Homerlon Changemakers was launched durirvJ 2019. The costs amounted lo £83,270 12020.. £133,494). This is a three year, inlegraled, co-curricular programme, designed lo help Homerlon students thrive both during and after graduation. 11 is based on the pillars of responsibility. efficacy, aclton and leaijership. Changemakers continued lo delThier an innovative progiamme Ihroughovl the year. albeit mostly online. The College also employs a Nurse arvj Counselkx lo wovide onsite care for sludenls. Outreach and access The College is concerned lo ensure Ihal the benefiis of the education PTovided by Ihe College are, and are underslood lo be, open lo talented applicants from every background, raise educational a5piralion, and allract oulslanding applicants who might not have olhewse considered applying lo CambrKlge ar)d Homerton College. The College employs a full-lime Schools Liaison Officer. The Schoofs L￿tS0￿ offi￿r, in consullalion with the Admissions Tutors. operates an extensive outreach programme of visits lo schools, visits by schools lo the College, summer schools and open days. The pandemic meant that many of Ihese 8clivilies were curtailed or moved online. In agreement wlh other College5. Homerlon focuses ils outreach on three geographical area.. Rthmond and Hounslow, Doncaster and Rolherham, and Scotland. Webinar links were provided for our ￿h0O1$ in these areas. During the year, over 400 polenlial applicants visited lh8 College {2020= 1,3011 and subject based open days catered a further c.600 sludenls In 2019, the College invested in Ihird-p&ty soflware io allow prospective students lo talk lo current sludenls usually in their subjecl area via chal and this was invaluable during the pandemic. Cognisanl of the d￿￿KUll study and exam corbdilM)ns that many of our prospective sludenls had endured, Ihe College provided on-line arLess and preparaliorb courses for around 1,500 pre- applicants. Homerton College 7

Trusteos, report lincorporating the operating and financial review) Year lo 30 June 2021 Admlsslons Undergraduate admIss￿n$ for the 2020-21 A¢adern￿ year exceeded planned numbers due lo the absence of exams for sixlli form sludents. This is crealing pressure on acconiinodalion as this cohort moves through the years. Our admissK)ns wocess will Lonlinue lo be diclaled by discussions belween inletviewefs, 01￿CloTS of Studies and Admissioiis Tulors on Ihe Quality of each applicant wlh an approwiale consideralion of individual applicants. conlexlual information. Neveriheless. we are proud Ihal we exceed Metr￿ sel for POLAR. OAC and IMD parlicipalK)n in Ihe agreemenl with the Off￿e f¢y Studefits for 2024. Extra-curKi¢ular aGtivities Homerlon students are encouraged lo Part￿lp¥[e in a wtde range of activities bolh College- based and in Ihe vrider University. A total of 34 (2020 - 39} represenlalion awards of £200 recognised the contribution of our students across aclivtiies in sport, Mus￿, dance, drama and socielies in the V￿er University. The College also made donalions, lolaling £8.5k, lo local charilies and sludenl societw usually wth a Homeilon sludenl or staff involvement. The College PfOVMJes SUPFM)rl to a range of musical ac1wil￿5. in parlicular Ihrou9h Ihe Chailer Cthr. The College em￿oyS a Director of Music, and each year awards a number of Choral and Organ scholarships. Two new large and airy music practice rooms were completed in summer 2020. Research Fellows of the College are supported in their research adivilies wilh generous computer and research allowances. There were 8 Junior Research Fellows during the year and a number moved onto F)restigK)us leclureships around the world_ The College also supported ils communily 0120 Research Associates who provide a valuable resource for leaching and seminars. Masters and PhD students also receive research allowances for allendance 81 nlerences 01 workshops and fieldwork exFenses. Research Suppers conlinued online throughout the academ￿ year w i I h talks from members of the College on Iheii work unlorlunalely ￿1 with the customary research supper afterwards. The annual joint research event wilh our sister Cdlege in Oxford. Harris Manchester wa5 planned, ha(1 lo be can￿lled due to Covid-19. The Director of Research has helped to coordinate Ihe College's data lor the uF￿0m1ng REF submission and the Re5eaTch Committee has ￿ntinUed lo look al how fellows Can apply for external lunding granls Ihe criteria for ¢laimiTrJ research allowances and graduate grants arKI awards. Responding to Covid-19 The College was unable lo accept any evenl cw summer school business duriro the summer of 2020, however there Wds hope that the academic year would be a new beginning. The Universily and Colleges commissio￿￿ weekly asymplomalic lesling and students wefe organized inlo households ol between 5 and 12 (average 9) around their kilchen or gyp room." There were no large gatherings in line with government regulalions and sludenl aclivily fc*used on Ihe househokls. Some 150 International students were supported lo quaranline on arrival prior lo Ihe slart ol term. Unfortunately. in mid-oclober, with cases rising Public Health England advised the lockdown ol our largest sludeiil residence, Wesl House, housing mostly freshers. Homerton College

Trusteeg, report {incorporaling the operating and financial r&viewl Year lu 30 June 2021 PUBLIC BENEFIT Iconlinuedl Respondlng to Covid-19 (conèmpued) Sludenls wete atde to order meals online and an army of caterin9 staff ijelivered focKJ lo each room. Directors of studies, lulors and supeivisors Provided support lo students wherever they were located. The Poiters Lodge were supplemented with staff lo lake deliveTies, snacks and °gifls° lo each room lo ITY and lili spirits. The Homerlon Union ol Siudenls IHUSI provided online support wlh games and chat. 11 was a very difficult lime and as the fifst of the Colleges lo °go down- were very ffluch a guinea pig for PHE and the other Colleges. The remainder of the year followed a similar paltern. Although there were no more outbreaks. there were always students in quarantine or isolalion that needed support. After the Christmas vacation resident sludenl numbers gradually grew as students increasingly found il difficult lo study al home or could not relurn home. The Colle9e Offi￿r$ and management continued lo work with the University arKI other Colleges wlh joint planning lo interpret and implement each thange in legislation and risk assessed good KY&tice. The academtc year finished with most students in residence and undertaking many exams from their rooms. Graduat￿nS look rAace although wlh few guests and the ceremonies Ihemselves streamed lo family and friends. A large onerous iask that look place over the summer of 2020 land again this summer) was the packing up ar¢d return of the belongirKJs of almost 650 students who had lell Ihe residence in March 2020 with the expectation of returning in April. The pandemic has had a stgnrf￿anI financial impaci on the College. The principal mallers up lo 30 June 2021 included the Ioss of sludenl rental income and catering throug houl the year and loss of all conference, events and Homerton International programme revenues. Homerton College 9

Trustees, report liii¢orporating the operating and finan¢ial review} Year lo 30 Jurie 2021 FINANCIAL REVIEW Review of the results for the year Overview The College Income ar￿5 Expenditure Account for the year ended 30 June 2021 reflects the impact of CovKI-19 with the absence of any conference and evenls income from March 10 30 June and the loss of one-lerm's sludenl residenltal and catering i￿ome, allhough Ihe reduction in costs partly offsel this. There was a loss before olher gains and losses of £1,775k 12020.. loss before olhei gains and losses 01 £668kl. This was after a contribution of £38k 12020.. £37kl lo the Colleges, Fund under Universily of Cambridge Slalule G,11. EducatiTOll AcGount The per capila rale applicable lo the undergraduate college fee for Home and EU students was £4,625 (Years 1- 4) and £4,500 (Year 5}. The graduate and PGCE fee lo Ihe Colleges Was increased by 4% 10 £4.069 {2020.. £3.911). Of Ihe lolal graduate fee income, this included 8 sum of £61,178 which vras directly taken lo Ihe Vice chan￿lIOr'S Graduale Fund. Total income from cdlege fees. granls elc amounted lo £5.4m 12020-. £5.17ml. Education expermlilure vrds £6.29m {2020'. £6.34ml a decrease of £56k leaving a def￿11 of £0.89m12020'. £1.17m). Residence and caterlng accounts The College is very mindful of sludenl finances and strives lo keep increases in accommodalion rents and catering prices as low as possible whilst endeavoring lo cover C051s and maintaining a high standard i)f {moslly en-suile) accommodation through regular refurbishment. This year room rents incseased by 13.0% for undergraduates {21)20.. 2.gvol and 4.6Vo for giaduales {2020.. 3%) an(J Hall food prices reduced by an average 40°/. 12020". 0%). The Minimum Meal Charge IMMCI was ended in 2020. The college is pleased that our sludenl room rents conlinue lo be amongst Ihe lowest in Cambridge and the lower food prices came al a lime when many students in isobalion or quarantine had no choice. The residence ￿coUnt Ir￿ome was £2.37m12020." £2.37ml. Costs for the year were £3.33m 12020.. £3.09ml Tesulling in a loss of £954k12020= loss of £717kl. In the previous year, almost a term ol residence income was lost {Easler lemil, whereas for this financial year Ihe loss was incuffed throughout the ￿dern￿ year. Term-lime students, staff arKI college fU￿tIon catering produced a lurnover of £0.35m 12020-. £0.79ml reflecting bolh the TeduclK)n in pricing and less College futKlions and residents.. After allowing for pay expenditure of £958k 12020: £765kl and noTF.pay and overheads of £566k {2020= £738k). Ihe account was in delicil by £1.17m12020: delicil £710kl. Costs which would normally have been charged lo Ihe conference and events business were charged lo the student resIder￿e and catering accounts. Homerton College 10

Trustees, report {incorporating the operating and financial review) Yeai. lo 30 June 2021 FINANCIAL REVIEW Iconlinuedl Review of the results for the year Iconlinued} Conference and Events business Income from conferences forms a vital part of the col￿ge'S funding and Ihe10s5 of business for the whole of the year IS Tefiected in the increased deli¢il in the ￿Counts. A significant portion of business has postponed evenls until 2022 although this in many cases wll be instead of events that would have occurred in any case. CoFlege is aware of the need lo rebuild this business post CovKI-19 and is investing in ils meeting rooms. The North Wing audilorium and guest bediooms comFleled in summer 2020 will also provide a Stgnif￿anI additional income in future years. Conference and Even15 income from the provision of catering and accommodation services lo residen1131 and day conferences (including Colophon Limited} was £2k12020.' £1,135kl. Direct conference expenditure amounted lo £11k {2020= £525kl. giving a nel loss of £9k12020-. £609k conlribulionl. Maintenance of bulldings and capltal expendilure The College aims lo preserve the quality of ils building. residences, public spaces and infraslruclure lo provide sludenls vAlh a quality experie[￿ now and for fuluie 9eneralions. During the summeF of 2020. Ihe top flo￿ of ABC residertes 127 rooms and gyp rcKJmsl underwent a complele refijrbishmenl. The fiTst phase of Ihe new sp￿1$ r￿Id$ commenced in O¢lober 2019 which has three ailrficial flood-lit pitches lor h(￿key, tennis and netball and football and rugby. The pitches were completed in September 2020 and the construction of the Pavilion began shortly afterwards. Covid. and shortage of supplies. has delayed completion, which is now scheduled for October 2021. Cosl expended in the year was £1.879m. The new Dining Hall wlh servery. kilchens and Bullery. commenced construction in February 2020 and is on schedule lo be completed by March 2022. Work over the summer 2020 on the Dining Hall It￿lUded, a new electricity substalM)n and the inslallalN)n of a large Ground Source Heal Pump IGSHPI array under the lawns, lo provide heating and cooling lo the Some of the other capilal works and prctyecls th811(M)k place over summer 2020 are listed below. Refurbished 188 Hills Road ￿al A new grease managemenl syslem installed in main kitchen the Great Hall, Fellows, Dining Room and Principal's corridor flooring ha5 been completely sanded down and refinished. Increased pigeon nelling ovei Harrison Drive building areas Homerton College 11

Truslees, report (incorporating th8 operating and financial review) Yeai lo 30 Jijnp 2021 FINANCIAL REVIEW Iconlinued) Review of the results for the year {conlinued} Investment policy and performance Investmentportfollo The College maintains a long-lemi approach to inveslmefil, relainin9 a diversified porttolio of high Quality assets. lo prolecl the real value of Ihe capital base and provide protection against inflation risk. The College's primary investment objeclives are.. • lo seek lo maintain the value of Ihe porllolK) in real leTms i.e. 1% above inflation,. and • lo maintain a predicted annual standard deviation of relurns less than 12. The actual lolal relurn target is RPI +4% per ar)num. nel of all inveslmenl fees and costs, over 5-7 years in order lo suslain a spending rale 013% ovei a trailing 3 year average. Rothschild & Co ate reiained lo manage Ihe investment porffolio. UBS retained a sm811 porffolio ol private equily assets which have been invested in since 2008. These laller investments were realized post year erKJ. Overall, the College's Investment porttolio has increased in value Irom £82.Om to £91.6m al Ihe year end {nole 13) after £14m was wlhdrawn to pay down the Rolling Credil Facility IRCFI th Lloyds Bank and fund capital wojecls. The relurn since the appointment of Rothschild & Co IO¢lober 20151 comfortably exceeds the total largel relurn on an annualised basis. The Investment Commillee advises the Trustees on the elhical policy with regard lo 115 investments and follows and discusses the debale on issues of an environmenlal, social and governance nature. Through ils investment managers, the College is seeking to invest long-lerm in assets which demonslrale a sustainable investment performance, and therefore, il is rkalural Ihal considerations of an ESG nature will be taken. when acquiring. managing and Irading in holdings. The Investment Committee also erthurage their equity managers lo dischwge their responsibilities in accordan￿ with Iheif own corporale governance policies. taking into accounl. Ihe UK Corporate Governance code, UN Principles ol Responsible Inveslmenl and Ihe UK Stewardship Code. The Investment Commillee also monilors, Ihiough its investment managers, ils holdings ol $0 called "sin stocks" and inveslmenls in industries exlracling fossil fuels. The College does not hold any direct shareholdings in f05siI fuel companies land has not for at leasl 5 years) and ils holdings through funds are considered de minimis. Homerton Gardens The cc¥nmefcial development was compleled in Spring 2016 al a cost of £18m. The main lenanl is Alpha Plus Group operating Abbey College. a sixlh form school. Rent. on the 25 year lease, coMMer￿Ed in September 2016. The commeicial buildings were valued as al 30 June 2021 al £45.5m130 June 2020.. £42.75m). A discount on rent was given lor Ihe firsl half of the year recognizing the (Jifftculties Ihal the school was exper￿nCIl*j from Ihe pandemic. The value of the residential developmenl is sialed as other inveslmenls al £O.Sm {30 June 2020.. £0.5ml and rellecls the value ol the leaseholds. Homerton College 12

Trustees, report lincorporating the operating and financial review) Year lo 30 June 2021 FINANCIAL REVIEW (continued) Investment policy and ￿rfOrMance (continued} Investmentportftilio (Gonlinu8dJ Investment Land Bidwell's perfwmed a valualion of Ihe invesimenl larKI. as at 30 June 2021. The land has been valued al £6.6m (30 June 2020.. £6.Oml. Leases The Northern Sile is the subject of a 99 year lease, from g January 2005, to the Universily of Cambridge, for which a wemium has been received and accounled for as defeired renial income. This is released in equal annual instalmenls over the lease term. The Mary Allan Building is sul¥'e¢l lo a 60 year lease, lo (he Universily of Cambridge, of ils offices and shared leaching arKI audit￿luffl space from 2001. The lease of the ScierKe EdUcal￿n Cenire to the Universily of Cambridge is for 25 ye8r8 from August 2001 and has been exlended for a further 15 years. College Land and Buildings The College reviewed ils accounting policie5 in the light of the new accounting standard FRS102 in the year ended 30 June 2016 and decided that the College's operational assets should no longer be revalued, and thal any new operational assets should be added al cost. The College's land and buildings are therefore slated al Iheir value al 31 July 2013, as updated by the Governing Body lo 1 July 2014 10 £79.7m. Transactions since 1 July 2014 have been reflected in the balance of £1￿.6M al 30 June 2021. Assets under conslruclion al 30 June 2021 represented costs expended lo dale on the Dining Hall, Bullery and kitchens. Expenditure of a capital nature over the past 5 years has been furKled through College operational cash flow and the proceeds of Ihe bond issue in August 2015 INole 181. Cash flow forecasts are regularty presenled to the Inveslmenl Committee and College CoLJncil showing the requirement lo use funds invested to complete the Eslales Slfategy 2014-2024 over the period 2021 10 2024. The loss of cash flow from operalions over the pasl Iwo financial years has increased the need lo furKI ongoir)g projects from the investment porffolio. Rather than use invested funds. a £10m Revolving Credil Facilily IRCFI was agreed with the College's bankers, Lloyds Bank in June 2019. This was drawn on for the first lime in FebruaTy 2020 £4m lo fund the ongoing capital works. The remaining £6m was érawn down in July 2020. The loan was repaid in May 2021 from the investment portfolK). Homerton College 13

Trustees. report lincorporaling the operating and financial review) Year lo 30 JiJnp. 2021 FINANCIAL REVIEW l¢onlI￿ed) Fundraising Fundraising is utKlertaken Ihrou9h the College staff employed in the Development office. and is focused on the Alumni of the Colle9e, and partnerships with Sanlander and olhe¥s. Fundraising is largely Ihough the atbnu31 telephone campaign, emails and requests, lo Alumni, afKi the College part￿ipate$ in the CambTrdge in America scheme. All donalions raised in Ihis way are used lo support our sludenls. The amount raised lo 30 June 2021 was £1.402k12020 £248kl of which. £1.047m was from a legacy. We did rx)l use the services of any profession81 Of commercial fundraisers. We are registered th the Fundraising Regulalor and abide by its voluntary scheme for regulating fundraising. We did not feceive any complaints about our aclivilies foT Ihe purposes of fundraising. Before commencing the annual telephone campaign. all identified participants (who are all Alumni) are contacted by mail and given the opportunity to not be coniacled. All our callers, who are Current sludenls. are trained and monilNed lo avoid unreasonable intrusion on a persotk's privacy. Staff costs and penslons Total payroll costs, including employer's pension aims naltonal insurance conlribulions. were £7.5m12020: £7 Om) (see nole 10}. Each yeaf, staff are appraised and an application can be fflade lo the Staff or Fellows Remuneral(on comwnillees f(w consideralion of a regrade for Ihal pos11ion. Salaries are beKhmarked againsl other c￿lege$ and, where appropriale. local companie5. Salaries are increased each year in line wlh the UCEA negolialed pay increase. Homerton College is one of the few col￿ge$ slill offertng a benefit as opposed lo a contrib￿lI0n pensions scheme lo all permanent staff and therefore average support 51aff cosls are amongsl the higliesl in Cambridge College5. All staff feceive a meal whilst on duly. College polry is lo pay the Living Wage lo all permanenl and temporaiy employees. The funded pension scheme operated for non-leaching staff is Ihe Cambridgeshire County Council Local Government Pension Scheme {LGPSI. The College also supports membership of the Universilies Superannuation Scheme IUSSI. mainly for ils Academi¢ staff. LGPS The LGPS share of ¢Jeficil, cakulaled lo meet the requirements of FRS 102. allribulable lo exisling and former staff was £3.5m 12020.. delicil of £3.89m}. The Employer's conlribulion rate changed in April 2021 to 18.0% (April 2020: 18.1%1- uss Due lo the nature of this sd)eme, Ihe College is unable lo *enlrfy ils shaTe of Ihe underlying assets and liabililTes of Ihe scheme on a con51slenl and reasonable basi5, and therefore a￿Ount$ for the scheme as if il were a defined contribution scheme. A5 reported in Note 21 Ihe trustee eslifflales that Ihe funding ratio as al 31 March 2021 had increased lo 84% {from 79% as 2131 March 20201 reducing the deficit 10 £15.2bn 12020.. £20.2bnl. Homerton College 14

Trustees, rèport {incorporating the operating and financial review) Year lo 30 June 2021 FINANCIAL REVIEW Iconlinuedl Staff costs and pensions (Continued} USS (conlinued) The College has entered into a Recovery Plan wilh ihe Univefsilies, Superannualion Scheme lo fund the deficil within the Scheme. Consequently, the College has recognised a liability for Ihe conlribulions payable that ari8e from the agreement lo Ihe exlenl that they relate lo the deficil and the resulting expense in the stalemenl ol comprehenstve irtome 2nd expenditure. Al 30 June 2021, this t￿bIlItY was £0.57m12020.' £0.58ml. The recovery ￿an will currently inCTease Employer conlribulions furthei in Oclober 2021 10 21.4%. Since Ihe year end. following the completion of the 2020 actuarial valuation. a new def￿11 recovery plan has been agreed in respect of the USS pension scheme. As detailed in Note 29 this results in an increase of £1.037m in the proviston for the obligalion lo fund the deficit on the USS pension which would instead be £1.611 m. 11 the Joint Negolialing Committee (JNCI recommended deed on benefil changes has not been execuled by 28 February 2022 then there would be an increase of £1.999m in the provision for the obligalion lo fund Ihe deficit on the USS pension woukl instead be £2.573m. Rgseryes policy The College's inveslment poiffolio. ils COnferer￿ t￿lsinesS and Tenlal income from leases have the fLJnclion of suslaining Ihe &livilies of the Coltege. Expenditure is guided by an assessment ol f￿e¢as1 performance and liabililies wilh Ihe objective of identifying sustainable affordable expendiliire achieving inler-generalional equily. This is discussed in more detail above in respect ot the inveslmenl pOI￿y. The lolal unrestricted lurKls of the group tolalled £227.Om al 30 June 2021 {30 June 2020.. £200.7ml. Of Ihis, the general reserve, excluding the pens￿ reserve, amounted lo £120.6m 130 June 2020: £111.7m}. The free reserves of the Cdlege are largely represented by the College Inveslmenl portfolio, u￿ler managemenl with Rothschild & Co. and cash held, lolalling £91.6m 8130 June 2021 130 June 2020.. £82.Om). Each year. the Investment committee considers the cash flow projection5 for the College lor the nexl 5 years and the appropriateness of the level of inveslmenls aiKI advises Ihe TTuslees. The Inveslmenl Committee consider.- The capital expenditure planned under the Eslales Slralegy lo 2024,. The re-payment of the borKls issued in 2013 and 2015 due from 2040,. • The age and condrtion of the existing Iwiklings used for leaching, catering, offKes and accommodation". The operating i￿ome arKJ cash flows. Unlil Ihis year. the College had had rKs reason lo withdraw funds from Ihe investment portfolio managed by Rothschild since ils inceplion in 2015. Covid-19 has inueased the need lo access funds from the investment portfolio from 2021 onwards as a result of Ihe loss of income and cash flow from sludenl and conference residential income and catering and events. However. the wjrtfdio has achieved exceptional returns lo June 30 2021 whi¢h allowed the wlhdrawal of £14m ol funds lo repay the RCF of £10m in May 2021, and conlribule lo funding capital wojects. Homerton College 15

TfUStees' reporl lincorporating the opeiating and financial review) Year lo 30 Jiine 2021 FINANCIAL REVIEW Iconlinued) Reserves policy Iconlinuedl The Inveslmenl Committee is comfortable Ihal the level of investments which represenls the free reserves of the College is 8ppropriale lo the needs and size of the College and will be available lo fund the remaining PToje¢ts of the Eslales Slralegy the shortfa115 in operaling cash Ilow as a resull of the CovKI-19 parmlemic over the next 3 10 5 years. PLANS FOR FUTURE PERIODS AND POST BALANCE SHEET EVENTS Short-term future plans and activitles Estates The Dining Hall wlh new servery. bullery and kitchen is scheduled for completion in March 2022. New furniture for the Hall has been commissioned. and new artwork by Shezad Dawood has been commissioned, in¢ludirvJ a large tiled mosaic in the entfance loyer, a film, and lapeslry for the H811. The Pavillion of the new Sporls ground and outside areas was compteled al the end ol October 2021 and an openin9 ceremony held on Oclolxr 251h Negolialions lo eng8gè a managemenl company to provKle for Community Use under the S106 agreement are ongoing. During 2020-21, an afchileclure competilM)n was held for a new Porters Lodge, additional study spaces and exhibition space, and a Children's, Literature Resour￿ Cenlre. Alison Brooks were appointed in July 2021. an(J significant planniThJ is being undertaken by the design team and College team, with the intention of submilling planning in January 2022 8nd commencing conslruclion. if ￿annIng is received. in the summer of 2022. Once plannin9 IS submilled. we can continue planning for the Great Hall and ils environs. During Ihe summer of 2021. 8 second tranche of the bedrooms and en-suite shower rooms, of 27 of the 81 bedr(xJms in ABC. were complelely refurbished. and one of the Hills Road residences has been relurbished. Also, starling in July 2021. is a complele refurbishmenl of the meelings room5 In Ihe Ibberson Ixjilding, lo improve the interior design, install state-ol Ihe-arl audio visual equipmènt. especially lo host hybrid meetings and, the starting point of the prq'ecl. to improve the fwe safely of this Grade 2 lisled trwilding by providing additional lire escapes and thereby restoring the capacities of these r(￿s. The sustainability of this building is also being invesligaled. With Ihe reliremenl of the Pri￿paI. Professor Geoffrey Ward. Ihe Principal's Lodge on Luard Road is ￿Ing ￿deCOrated and furnished for the incoming Principal, Lord Woolley. Environment Having established existing Scope 1 and Scope 2 carbon emission5 for the sile which c8n then be tracked each year. we have commissioned Skelly & Couch lo report on: Energy evaluation by building and option5 for improving energy use A feasibility (or the eliinina(ion of gas as an etiergy source Generatyon from exisiing rA)otovoltaics (Pvs) Eleciric Vehicle Charging provision Homerton College 16

Trustees, report (incorporating the opwaling and financial review) Year lo 30 June 2021 PLANS FOR FUTURE PERIODS AND POST BALANCE SHEET EVENTS Icontlnued) Short-term future plans and activities (continued) Environment (conlinued) This is a long-lerm project. bul we are confidenl of eliminating gas from the campus wtlhin 20 years. Cambridge Colleges currenlly purchase electricity from a company Ihal generate5 through 100% reneWat￿es. The new Dining Hall and Bullery are powered by eleclricily, and healing and cooliThJ provided by Ground Source Heal pumps IGSHPI. College also funded sludenls of the Environmenlal Sociely lo undertake a bScKJiverslly study of College campus and in particular the conservalN)n area during summer 2021. Fundlng £6m was drawn down in July 2021 from Ihe Investment porlfolio lo fund the construction of the capital projects (see Note 28). Admissions over the summer Having been challenged by the admillance of ils largest ever first year undergraduate cohort {201 sludenls} in 2020. the offer ratio was Tedl￿ed a￿1 the College admllled 178 undergraduales in 2021. PRINCIPAL RISKS AND UNCERTAINTIES The Cdlege's Governin9 Body and the direclors of the College's subsidiaries ¢onlinued with their policy of f￿Mal risk assessmenl. Al College Commillees review and u￿ale the risk assessment appropriate lo Iheir purpose al ￿ast annually. These are consolidated and reviewed by the Audil Committee. Cdlege cour￿11 and Governing Bo(ly. Previously considered stgnrficanl risks such as Brexit, which has created subslanlial uncerlainlEs for lellows, staff and students are slill in the background and are manrfesling themselves in drfficullies in recruiling staff and supply shortages. The UK Governments report on Initial Teacher Training puls al risk the PGCE course in Cambridge University and Ihe loss of fee income for the College and Ihe impact on its tenant the Faculty of Education. The impact ol the pandemic still dominates the risk 8S5essmenl. There are uncertainlies as lo the recovery from the pandemic and the likelihood of further such evenls in the fuluie. The impacl of the pandemic in many ways. is a consolidation of prevKNJsly idenlified risks, And still presents a risk, financially. academically and for personnel. Also increasing in terms of likelihood and severily is the possible delerior3lion on the mental health and academic achievement ol students primarily as a result of their experience over the past 18 months as lirsl years and sixth form students. The College is providing additional support lo our slvdenls. and have I￿reased academic and support programmes, through Changemakers. and re-structured the pastoral supporl. Ihrough the Tulor system. for all 51udenl5. The major change from last year's healmap is Ihe increase in likelihood and severity of Ihe failure lo recruil m￿e UnFversrty Teaching orrws. This is within the A¢ademi¢ strategy as an area of f￿A￿S. Homerton College 17

Trustees, report {Incorporatlng the operatlng and financlal révlew) Year lo 30 June 2021 AUDITOR In so lar a5 the trustees are abwe". • Ihere is no relevant audit infoTmalion of which the College and group's auditor is unaware.. and • the Iruslees have taken all steps Ihal they IMJ9hl lo have taken lo make themselves aware of any relevanl audil inlomialion arKI to e51ablish Ihal the audilor is aware of that in1c￿mation. Approved by ordw of Ihe Governing Bc*Jy on .] and signed on ils behalf by.. Bursaf and Fdlow Hornerton College 18

Corporate goveman¢e statement 30 Jur 2021 Governance The following slalemenl is provided by the Council lo enable readers of Ihe financial statements lo obtain a beller understanding of Ihe arrangemenis in the College the management of ils resources and for audrt. The College is a registered charily {regislered number 11374971 and subject to regulation by the Charity Commission for EtwJtand and Wales. The members of the Council are the charity Iruslees and are fespon5itAe for ensuring complia￿e wlh charity law. The GovernirKJ BI￿lY and Council are advised In wing oul their duties by a numbei of Cownmittees as explained below. G0￿rn1Thg Body Audit Committee Eqvaltyand tkn Committee Council Health and Safety Committee Statutes and OrdiTrantes Estates Cc¥nmitiee to the Dean EdI￿a￿nI1 Polry Committee Felowshp Committee Stu￿( Harikhi) co￿￿ni[[ee Benefits Commwe Donation5 Con¥nittee Committee brary Commtee CaEerng and Bar Corkwnittee FeAows Rvwnerat Committee Staff Remunerati Commitoe External Relatk)ns Commityee On occasion wort(irwJ grtyJps are sel up lo provKle lime l¥niled dir￿tIon such as the Music Strategy workirKJ grwp. TIE principal off￿S of the c￿lege are.. • The Princlp81 • The Senior Tutor • The Vice-Principal The Admissions Tulors • The Bursar • The Posl-Graduale Tutor Homerton College 19

Corporate governanco statement 30 June 2021 Governance {conlinuedl 11 is the duty of Ihe Audit Commillee lo keep un(JeT review the effectiveness of the CAolleye's internal system5 of financial and olher conlrols., lo advise the Goveming Body on the appoinlmenl ol exlernal auditors,. lo consider reports submilled by Ihe auditor,. lo monitor 11)e implemenlalion ol recommendations made by the auditor", lo make ali aniiual reporl lo the Council and C)overi)ing Body. Membership of Ihe Audit Commillee includes Iwo independenl ¢harlered accountants and Iwo fellows who are not members of the Council. De¢laralions of Interests 8re completed by all Members of the Council and the senior adminislralive officers. Declaralrons of interest aTe made syslemali¢ally al meetings. The College's Members of the C(MI￿lI during the year ended 30 June 2021 are sel out on page 2. Statement of Intefnal Control The Governing Body is Tesponsible f(Y maintaining a sourKI syslem of internal control that supports the achievement of pdicy. aims and objeclives while safeguarding the public and other funds aiKI assels which Ihe Governing Body is responsible, In accordan￿ with the College's Slalules. The system of internal control is designed lo manage Tglher than eliminate the risk of fail(Ire lo aCh￿ve policies. aims and obJ'eclives-. il theref￿e provides reasonable bul nol absolule assurance of effectiveness. The system ol ir)lernal control is designed lo idenlrfy the principal risks lo Ihe achievement of policies. aims and objective5, to evaluale the nature and exlenl of those risks and lo manage them effI￿entlY. effectively and eGonomi¢ally. This process was in place for the year ended 30 June 2021 and up lo the dale ol approval of the financial slalemenls. The Goveming Body is responsible for revievmng the effectiveness ol the system ol internal conlrd. The following processes have been established.. • The Audit Commiltee reviews a risk assessment rerKJrt which il submlls lo Ihe Governing Body in the Easter Term.. The Audit Commillee presents an annual report, including the adequacy of Ihe internal controls and the prep8r8lion of the fina￿la1 slalemenls in Ihe Michaelmas Teim. The Governing Brmly's review of the effecliveness of the system of inlernal control is informed by the work of the various Commillees. the Bursar, and College oflicers. who have responsibilily for the development and maintenance of Ihe inlernal conlrol framework. aFid by Comments made by Ihe external audilor in their management leller and other reports. Homerton College 20

Statement of the College Council's responsibililies 30 June 2021 Statement of Internal Control Iconlinuedl The Council is responsible for preparirvJ Ihe annual report and financial slalemenls in a(Lordan¢e with 3pplicalAe law and United Kingdom Accounting Standards (United Kingdom Getberally Accepled Accounling Practice) arxl presenting il lo the Govefning Body lor approval. The College's Sialules arKI the Slalules and ordinar￿￿$ of the Universily of Cambridge require the Council lo prepare financial slalemenls for each financial yea¥ which give a true and fair view ol the slate ol affairs ol the Group and the College and of Ihe surplus or deficit of the Group lor that year. In preparing these financial slalements. Ihe Council is required lo.. select suitable accounting txAicies arKJ then ap￿Y them corisislently,. make judgements arKI eslimales Ihal are reasonabte arKI prudent.. slate whether appI￿able UK Accounting Slar￿ards have been followed, subject lo any material departures disclosed and extAained in the finanaal slalemenls,. and prepa￿ the financial slalemenls on the going concern basis unless il is inappropriate lo presume U)al Ihe Grwp and the College will continue in operation. The Council is responsible for keeping woper tLcounling records which disclose Mlh reasonable accuracy al any lime Ihe financ￿1 position ol Ihe Group and the College and enable them lo ensure that the financial stalemenls ￿mplY with the Slalules of the University of Cambridge. They are a150 responsible for safeguarding the assels of the Group and the College and hence for laking reasonable steps for the prevenlK)n and detection of fraud and other irregularities. The Council is resKM)nsible for the mainlenarKe and ￿tegrilY of the COTporale and financial informalM)n irYJuded on the Cdlege's website. Legislation in the United Kingdom governing the preparation and dissemination of finartial slalemenls may drffer from legislation in other jurisdictions. Homerton College 21

Independent auditor's report 30 June 2021 Oplnlon We have audited Ihe financial slaleinenls ol Homerton College Ilhe 'College'l and ils subsidiafies Ilhe 'group'l lor the year ended 30 Jiine 2021 which comprise Ihe Consolidated Slalemenl of Comprehensive Income and Expenditure, Ihe Consolidated Slalemenl of Changes in Reserves, the Consolidated and the College Balance Sheet, Ihe ConsolKlaled Cash Flow Slalemenl and notes lo the financial slalemenls, including signrficanl accounling policies. The financial repor(ing framework that has been applied in Iheir preparation is applicable law and United Kingdom A¢counling Standards, including Financial Reporting Standard 102 The Ftinancial Reporliiig Slandardapplicable in the UK and RepublAC of Ireland (Uniled Kingdom Generally Accepled Accounting Practi￿). In our opinion the financial slalemenl5'. give a true and fair wew of the slate of the group's and College's affaifs as al 30 June 2021, and of the group's incoming resources and applicalion of resources. including ils income and expenditure. for the year Ihen ended- have been properly wepared in acc(Kdan¢e with United Kingdom Generally Accepted Accounting Practice". have been prepared in accordance with the requifemenls of the Charities Act 2011 and the Sialules ol Ihe University ol Cambridge., and Ihe contribution due fTom Ihe College lo Ihe University has been COTreclly computed as advised in the provisional assessmenl by the University of Cambridge and in accordance with Ihe ovisions ol Slalule G.11. of the University of Cambridge. Basls for opinion We conducted our audit in accordance wilh International Standards on Auditing (UK) IISAS IUK}} and applicable law. Our Tesponsibililies under those standards are further described in the Auditor's responsibilities for Ilie audit of the linancial slalemenls seclion of our report. We are independent of Ihe group and College in aCcordar￿ wilh the elhical requirements that 21e relevant lo our audit of the financial slalemen15 in Ihe UK. including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements_ We believe that the audit evidence we have oblained is sufticienl and appropriale lo provide a basis for our opinion. Conclusions relating to going concern In auditing Ihe financial slalemenls, we have concluded Ihal Ihe Co1￿9& Council and Governing Body's use of the going concern basis of accounting in the preparation of the finanaal slalemenls is appropriate. Based on the Work we have performed. we have not identif￿d any malerial uncerlainlies relaling 10 events or conditions that, individually OT colleclively, may casl significant doubl on the group's or College's abilily lo conlinue as a going concern for a period of al least Iwelve months Irom when the financial statements are aulhorised for issue. Our responsibilities and Ihe iesponsibililies of the Iruslees with respecl lo going concern are described in Ihe relevant sections of this report. Other information The other information comprises the informalion included in the repofl of the College Council and Governing Body. other than the financial slalemenls and our auditor's report Ihereon. The Iruslees are responsible for the othe¥ information con18ined wilhin the annual report. Our opinion on the financial slalemenls does not cover the other informalion and, except lo the exlenl otherwise explicitly slated in our report. we do nol express any form of assurance co1￿usion Ihereon. Our iesponsibilily is lo read the other information and, in doing so. consider whether the olheT informaliorb is malerially inconsislenl with the financial slatemenls or our knowledge obtained in the course of the audil or olherwise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misslalemenls, we are required lo determine whether this gives rise lo a malerial misslalemenl in the financial slalemenls themselves. If, based on Ihe work we have performed. we conclude thal there is a malerial misslalemenl of this other infomiation, we are required lo report that facl. We have nothing lo report in Ihis [￿ar(l. Homertoii College 22

Independerlt auditor's report 30 June 2021 Matters on which wo are required to report by exeeption We have nolhiiig lo reporl in respect of Ihe followiig mallers in relalion lo vvhich the Charities (Accounts and Repoilsl Regulations 2008 require us lo reporl lo you if. in our opinion". the information given in Ihe Iinancial slalemenls is irtonsislenl in any material respect with the rèporl of Ihe College Council and Governing Body.. or sufficient accounting records have nol been kept., or the financial slalemenls ale not in agreement with Ihe accounting records and returns.. or we have r￿1 received all Ihe information and explartalions we require for our audit. Responsibilities of College Council and Governing Body As explaine(J more fully in the College Council and Governing Body. responsibilities slalemenl sel out on pages 21 and 22, the College Council and Governing Body are responsible for the preparation of the financial slalemenls and foi being sa1151ied Ihal they give a true and lair view. and foi such inlernal cor>lrol as Ihe College Council and GoveTning Body determine is necessa¥y lo enable the preparation of financial slalemenls that are free fiom material misslalemenl. whether due lo fraud or error. In preparing the financial slalemenls. the College Council and Governing Body are responsible for assessing the group's and College's ability lo continue as a going concern. disclosing, as applicable. mallers related lo going Concern and using the going concern basis of accounling unless the College Council and Governing Body eilher intend lo liquidate the group OT the College or lo cease operations, or have no realistic allernalive I￿1 to do 50. Auditor's responsibilities for the audlt of the linancial statgmenls We have been appointed as auditor unde¥ section 151 of the Charities Act 2011 and rep(wl in accordan￿ with regulations made urKler seclion 154 of that Act. Our objectives are lo obtain reasonable assurance aboul whether the finartial stalemenls as a whole are free from material misstalemenl, whelher due lo fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is rx)l a guafanlee that an audit conducted in accordance with ISAS {UK} will always delecl a malerial misslalemenl when il exists. Misslalements can arise from Iraud or erroT atKI are considered material if, individually or in the aggregate. they could reasonably be expected lo infiuence the economic decistons of users taken on the basis of these financial slalemenls. Irregularities, induding fraud, are inslances of non-compliance wlh laws and regulations. We design procedures in line with OUT responsibilities, outlined above, to delecl material misslalemenls in respect of irregularities, including fraud. The exlenl lo ￿r FKocedures are capable of delecling irregularities, including frau¢J is detailed below= We gairbed an understanding of the legal and regulatory framework applicable lo the College and how il operates and considered the risk of Ihe College r￿1 complying wlh the applicable laws and regulalions including fraud in particular those that could have a material impact on the linancial slalemenls. This included those regulations directly related lo the financial stalemenls. In relalion lo the College this included data protection. heallh and safely, employment law and financial reporting. The risks were discussed with Ihe audit team and we remained alert lo any indications of non- compliance throughout the audit. We carried oul specific procedures to address Ihe risks Identif￿1. These included the Idlowing.. We reviewed systems and procedures lo idenlrfy FX)lenlial areas of management override risk. In parlicular, we carried out lesling of journal entries and other adjuslmenls for appropriateness, and evaluating the business rationale of significant transactions lo idenlify18rge or unusual Iransaclions. We reviewed key aulhorisalion pr(tedures and decision making processes for any unusual or one-off Iransaclions. We reviewed minutes of College Council and Governing Body meetings and agreed the financial slalemenl disclosures lo undertwng suppoiling documentation. We have made enqulries of management and officeis of the College Tegarding laws and regulations appI￿able lo the organisation. We reviewed the risk management processes and procedures in pla￿ including a review of the risk register and reporting lo the College Council and Governing Body. Homerton College 23

Indepèndont audltoes report 30 June 2021 Because of the inherent limilalions of an audil. there is a fisk that we will not delecl all ifregularilies, including Ihose leading lo a mater￿1 missialemenl in the financial statements or non-compliance with regulation. This risk increases Ihe more Ihal compliance with a law (K regulation is removed from the evenls and transactions reflecled in Ihe linancial stalemenls. as we will be less likely lo become aware of inslances of non-compliance. The risk is also greater regarding brregularilies occurring due lo fraud falher than error. as fraud involves intentional concealment. forgery. collusion, omlssion OT misrepresenlalion. A further descriplion of our responsi￿.111￿$ is aVaila￿e on the Financial Reporting Council's website at-. hll s.Il¥¥ww.Irc or .uklOur-WorklAudiVAudil-and-assurancelSlandards-and uidancelSlandards-and- uidarKe-lor-audilorslAudilors-res nsibilities-foT-audiVDescri Iion-ol-audilofS4es nsibilities-f￿- au(Jil.as . This desuiplion forms part ol our audilor's report. Use of our report This report is made solely lo Ihe College's College Council and Governing Body. as 2 body. in accordance with College'5 slalules, Ihe Slatules of the University of Cambridge and part 4 of the Charities IAccounts and Reports} Regulalions 2008. Our audil work has been undeilaken so Ihal we might stale lo the College's College Council and Governing Body those mallers we are required lo slate lo them in an audilot's report and lor no olher purpose. To the fullest exlenl permitted by law. we do not accept or assume responsibility lo anyone olher Ihan Ihe charity and the charily's College Council and Governing Bcrtjy as a body, for our audit work. fof this report, or for the opinions we have formed. Price Bailey LLP Chartered Accountants and s￿lutOry AudttOTS Tennyson Hcmjse Cambridge Business Park Cambridge CB4 OWZ Date.. 29 April 2022 Homerton College 24

Consolidated statement of comprehensiv• income and expenditure Yeai lo 30 June 2021 2021 £'ooo 2020 £,￿0 Nole Income Academic fees and charges Residences, calering arKI conferen Inveslmenl income Othei incon 5,401 2.745 3,288 893 5,169 4,345 3,820 1,263 14,597 Total Income before donations 12.327 DOnatI￿S 1,402 13,729 248 Total income 14,845 Expenditure Education Resid&nces. Catering conleren Inveslmenl managemenl cosls Other expe￿IlUre ConlribulK)n under Stalule G. 11 Total expendlture {6.2871 16,3431 14,8951 15,6571 14291 (4171 13.8551 13.0591 1381 1371 15.504) 115.5131 {Deflclll bèfor8 Other galns and bosses 11,7751 16681 College's share ol loss on venture R8akns8d gains on inveslmenls Unreaeised gains th M)vès1rn8fbt 13 13 13 8.156 18.169 3.369 2.834 Surplus for the >par 24,S45 5,534 Othei comprehensive income Acluartal gainlllossl in respe¢l ol Pens￿ schemes Changes in assumplKJns arisityJ on leach8ts' penson oblvJations 21 19 1,379 17BI 12,8631 12331 Total comprehenslvo Income for the ￿ar 25.846 2,438 All items dealt with in arriving al the SUr￿￿S Ihe a￿Ve two &counling years relale lo continuing operations. Homerton College 25

Consolidated statement ol changg.s in re$er¥es Year to 30 June 2021 Pr￿me and expenditure reseNe RevalualM)n reseNe Un- resliicled Opwalional i)rop8rty Fixpd 8ssel invesltNenl Reslri¢Èed £'ooo Tolal £'ooo £'O(M) Balance at 1 July 2020 Suipluslldeftcill Iiom income and expendilute Olhei c(xnpreheiisive Inc(Mxe l expendiluie Transf81$ b8hM8en revaluation and inc(me and expenditure r8serve 8alance a130 June 2021 107.181 57,016 36.545 200,742 11.7801 26.325 24,545 1.301 1,301 9.138 115.840 19831 56.033 18.1551 54,715 226,588 In(X¥￿ andgxpènthlttr& Revalvalion re8en (Weralionèl Fixed assel prq>erty imrsfmenl £'o reslricled Re$l￿18d Tolal £'ooo Bala1￿e al l July 2019 Surplus/(delicit) from income and expe￿ilUre ollw¢(w￿h￿nSiwe expendilur8 Translers belween revalualn)n aml expendilure reserye Balance al 30June 2020 10&551 33,753 1gIR,304 (668) 6,302 5,534 (3,096) (3.096) 4,394 107, 181 (984) 57,016 (3,410) 36,545 2(K3,742 The transfer belweer) Ihe operational property revalualion reserve and the income an expendilufe ieserve is made lo compensale Ihe income ar￿ expenditure reserve for the additional depreciation chaTged on the Cdlege's operational piopeTly as a resull of ils previous revaluations. The Iransler between the lixed assel inveslmenl revaluation reserve and the income and expenditure reserve represents the realised inveslmenl gains dufing the year on a historical cost basis. The notes on page 36 10 55 form part of these financial slalemenis. Homerton College 26

Balance sheots Year lo 30 June 2021 College 2021 £'ooo 2020 £x 2021 £'ooo 2020 £'ooo Flxed 4$5et5 InlaThJlt￿e asseis Tangiblè ass8t$ Inveslments 442 111,369 148,490 260.301 453 107.282 133,014 240,749 453 107,262 133,014 240,769 12 13 111,357 148,530 260,329 Curr•nt 4s$•ts Stocks Trade and other receivables Cash 81 iwnk a￿1 in h 14 15 16 30 1,846 4,363 6.239 27 2.351 2.174 21 2.147 4,276 6,444 17 2,643 2,099 4,759 Current liabilities Creditors.. amounts thje within one year 17 12.9321 13.153) 12.9011 13,1541 Not current assots 3.307 3,543 1,W5 Total a5s•ts less current lialxllties 263.808 242.148 263,872 242,374 Creditors.. amounts fallThJ due after mor8 Ih8rTr one year 18 132.4441 {36.469} (32,444) (36,4691 Provislons for li*)ililw and charges Pension scheme (liability 19 21 14981 (4,078) 14601 14,477) 14981 14.0781 14601 4.4771 Total assets 226,588 2(K).742 226.852 200.96B Thè funds of thè grouplcoll89e: Unrestrlcted reserves Geneial ieserves exdLKlin9 reserve 119,918 {4.078} 111,658 {4.4771 120,152 {4,0781 111.854 14,477 PensTh¥ reserve Operational pro￿ty revatuati seNe $6.033 1.016 56,033 57.016 Fixed assel inve51rnent TwalualK 54,715 36.545 S4.745 36,575 Total funds 22fj.588 21x1.742 226.8S2 200.968 The finartial statements were approved by Governing Body on signed on their behair ty. and were BursaT Homerton College 27

Consolidated statement of ¢a$h Ilows Year lo 30 June 2021 2021 £'ooo 202n £'ooo Noles N¢t cash provlded by operating actlvitles 23 12601 11,4331 Cash flows from invesllng acliwlies 24 8,149 16,7511 Cash flow6 from financlng act1￿lIeS 25 15.1271 2.873 Incretse l {Decreasel In cash and eash equlvalents in the year 2,762 15,3111 Cash and cash equlvalents at 1 July 21120 4,157 9,468 Ca6h and cash equivalents al 30 June 2021 26 6,919 4.157 Homerton Colle9e 28

Principal accounting policies 30 June 2021 The prI[￿lp21 accounling pollcies adopted. judgements and key sources of eslimalion Un￿rtainlY in Ihe prepaTalton of the linatKial slatemenls are laid out below. Basi$ of preparation The financial slatemerils have been prepared on a g(Mng concern basis under the historical cost convenliorb. mOdif￿d in fespecl of the treatment of investments and land and buildings which are included al Valuat￿n_ The fina￿la1 slalemen15 have been syepared in accordance wilh the provisions of the Slalules of the College arKI of the UnNefsily ol C2mbTKSge and applicable United Kingdom accounting standards. In addition. the financial slalemenls comply with the Slalemenl of Recommended PractKe". Accounlirkg for Furlher and Higher Education {Ihe SORP). The Sialemenl of Comprehensive Income arwj Expenditure includes aclivily analysis in order lo demon51rale that all fee income is spent for educalional purposes. The analysis requiied by the SORP is sel out in note 9. The College conslttutes 8 benefil enlily as defined by FRS 102. The financial slalements are presented in sterling and are rounded lo the nearest thousand pounds. Going concern The Group has nel current assets of £3.933.0(M) {2020'. nel current assets £1.399,(X)O). The College aims lo break even al operalM)nal level ￿1¢h means that the cash flow is usually positive by a similar level lo the amount of deprecialK)n charged lo the &counls. This has historically futkded ong(Hng capilal projects. To fund larger projecls such as new graduate accommodalw)n ar￿ Ihe new Dining hall. the College has participated in a private placement or made use of an RCF. Cash flow plans shared with the Investment Committee and College Council forecast a need lo draw down fiom the investment portfolio during Ihe 2021 10 2024 period as projects under Ihe E51ales Strategy are completed. The Covid-19 pan{lem￿ will impact the cash ftow from operations over two financial years or more. This will increase the need lo draw down from the Investment portfolio. The Members of Council (Trustees) have assessed thelher the use of the going concern assumplion is appropriate in preparing these financial stalemenls. The Trustees have made this assessment in respect of a period ol one year from the date of approval of these financial slalemenls. The Trustees of the charily have concluded that there are no material uncerlainlies relaled lo events or conditions that may ¢asl signrficanl doubl on Ihe ability of the charity lo conlinue as a goin9 COr￿T￿. Furthemiore. the Trustees are of the opinion that the College is able lo meet ils 1ka￿litieS as Ihey fall due and Ihal there are sufftcienl free reseryes held Homerton College 29

Pri17cipal accounting pollcles 30 June 2021 in readily accessible lunds lo both meet liabilities and allow the ¢omplelion of ongoing capital projecls Critical ac¢ountSng 8Stimates and areas of judgement Preparalion of the linancial slalemenls requires the Meml)ers ol CourKil lo make signif￿an1 judgements atKI esliwnales. The ilems in the financial slalemenls where Ihese judgements and eslimales have been made include.. valuation of inveslmenl land and LMJildings.' eslimaling the useful econom￿ of lang1t￿e and intangible fixed as5els.' and • pensK)n scheme valualions, int4uding deficit reduction payments due under the Universities Superannuation Scheffle. In addition lo the above. the full impacl fdlowing the recenl eMerge￿e of the global coronavirus pandemic is slill unknown. 11 is I￿refOre rx)I currently possible lo evaluate all the polenlial impli¢alions for Ihe group and charily's aclivilies, beneficiaries and Ihe wder economy. Eslimales used in the linancial stalemenls. parlicularlywilh respect lo investment properly valUat￿nS (see note 131. and the value of listed inveslmenls are subject lo a 9realer degree of uncertainty arxl volalilily. Basis of consolldation The consolidated finarrial slalemenls consolKl8le the College and ils subsidiaries Isee note 13} for the year ewmled 30 June 2021. Inlra-9roup balances are eliminaled on consolidation. Joint venture The College's investment in Colokale LLP was ac¢xxJnled for as a joinl venture under the equity method of accounling unlil January 2018 when Colokale LLP became a wholly owned subsidiary of Ihe College. The College's inveslmenl in Warfi Grrftin LLP was accounted (or as a joinl venture under Ihe equity method of accounting. Recognition of income Academlc fees Academic fees are recognised in the year to wh￿h they relate and include all fees chargeable to sludenls or their spons(xs. Grant income Grants receNed from nonwvernmenl s(xJTces (includir)g research gfanls from non- government sources} are recogntsed wlhin the Consolidated Slalemenl of Compfehensive Income anij Expendiliire when the College is enliued lo Ihe income and performance related conditions have been met. Homerton College 30

Principal a¢¢ounting pollcles 30 June 2021 Income received in adVa[￿e of pe[lo[ma￿ related ¢orKlilions is deferred on the balance sheel and feleased lo the Consdrdale(I Statement of Comprehensive Income and Expenditure in line with such condilioTrs being mel. Donalions and benefaclions Non- exchange Iransaclions wilhoul perf(*mance related corKlilions are donations and benefaclions. Donalions and endowments with resIr￿tionS are classif￿1 as reslricled reserves with addilional disclosure provided within the notes lo the acci)unls. Reslricled donations are recognised when the donor has SpeC￿￿d Ihal the donation musl be used for a parlicular objective. Donations with no restr￿lOnS are recorded wlhin the consolidaled slalemenl ol comprehensive income ar￿ expenditure when the College 15 enliued lo the income. Other Income Income is received from a range of actmties includir@ residences. catering, conferences and olher services rendered. Investment Income Inveslmenl i￿ome and charvJe in value of investment assels is recorded in Ir￿ome in the year in which il arises and as either resIr￿ted or unreslricled ir)come according lo the terms or other reslriclK)n5 aptAied lo the indNidual fund. Foreign currency translatlon Transactions denominated in lorewn currencies are recorded al the rale of exchange ruling al the dale of the transactions. Monetary assels and liabilrties denominated in fore￿￿ currencies are translated into slerling al year end rates or, where there are forward foreign exchange contracts. at contract rates. The resulting exchange differences are dealt wilh in the delerminalion of t1￿ comprehensive income and expenditure for the financial year. Penslon schemes uss The College pailicipales in the Universilies Superannuation Scheme IUSS}. a defined benefit scheme which is contracted out of the Slate Second Pension IS2P), The assets of the scheme are held in a separate Iluslee-administered fund. Because of the mutual nature of the scheme. It￿ scheme's assets are not hypolhecaled lo individual inslilulions and a scheme-wide contribution rale is sel. The College is therefore exposed lo actuarial risks associated with other inslilvlK>ns' employees and unable lo i(lenlrfy ils share ol the underlying assets and liabililies of the scheme on a consislenl and reasonab￿ basis an Iherefore, as required by Section 28 01 FRS 102 "Employee Benefits" accounls for the scheme as rf il were a defined conlriixjlion scheme. As a result, the amounl charged lo the income ar￿ expenditure account reFrfesenls the contributions payable to the scheme in respect of the accounling ￿rI￿. Homerton College 31

Principal accounting pollcies 30 Jur)0 2021 LGPS The College also parltcipales in the Cambridge County Council Pension Fund ICCCPFI which is a Local Governmenl Pension Scheme ILGPSI. The assets of the scheme are held and managed separalely from Ihose of the College. As the College is able lo identify ils share of the underlytng assels and liabilities ol Ihe scheme on a consislenl and reasonable basis, in ￿cOrdanCe wilh the requirements of Section 28 of FRS 102 "Employee Benefils.. the pension scheme asset or liability is recognised in full on the balance sheet. The assets ol the LGPS are measured using closing market values. LGPS liabilities are measured using the KKojecled unil melhod and discounled al the currenl rale of relurrk on a high quality corporate borKI of equivalenl lem) and currency lo the liability. The increase in the wesenl value of the liabililies of the scheme expecled lo arise from employee service in the period is charged lo the operating surplus. The expe¢led return on the scheme's assets and the increase during Ihe period in the present value of the scheme's liabililEs, arising from Ihe passage of lime. are ir￿lUded in pensDn and fin8nce costs. Actuarial gains and losses are recognised in 'olher comwehensive i￿Ome. in the slalemenl of comprehensive income and expendilure. Employment benefits Short term employ)nenl benefits such as salaries and compensated absence5 are recogtbised as an expense in the year in which the employees Tender service lo the College. Any material unused benelils are accrued and measured as the additional amount the College expects lo pay as a result of the unused enlitlemenl. Intanglble flxed assets Inlangible asse15 comprise IT soflware and a purchased liCe￿e to occupy premises capilalised al cost and amortised through the slalemenl of (inar￿la1 aCt￿lI1e$ over their expected useful lrfe as follows= Licence lo occupy IT software Over the length of the license Over 8 period of 7 years Tanglble fixed assets Land and bulldlngs Fixed 2ssels are stated 81 cost less accumulated depreciation and accumulaled impairmenl losse5. Homerton College 32

Principal accounting policies 30 June 2021 New freehdd buildings are deprecialed on a straight-line basis over their expected useful economic life of 50 years. Freehold buildings held al 1 July 2014 were previously held al a valuation. As permilled by FRS 102, wilh effecl from 1 July 2014 the College elecled lo deem the valuation of these properties as cost. The value was been calculaled by a wevious valualioll being updated lo 1 July 2014 by the Governing Body. The remaining useful economic lives of these buildings from the dale the values were deemed lo be cost is 40 years. Consequently, Ihese buildings are now depreciated over a 40 year period. Freehold land is not dewecialed as il Is considered lo have an indefinite useful life. A review for impairmenl is carried out if events or changes in circumstances indicate that the cairying value of the fixed asset may not be recoverable. Buildlngs undei consliuclion are valued al cosl. based on the value of arehile¢ls' cerlificales and olhei direcl cosls incurred lo 30 June. They are not depreciated until they are broughl into use. Furnllure, fittings and equipment Furniture, fillings arml equipment costing more than £5.000 per individual item or if the aggregate valkje of related items exceed £11)O.IX)O are capitalised and deprec¢aled over their expected useful lrfe as follows= Furnilufe an¢J lillings Computers and general equipment 10% ￿ annum 20.kn per annum Investments Fixed asset investments are included in the balarKe sheet at fair value, except for investments in subsidiw undertakings which are slated in the College's balance sheet al histor￿1 cost less any provisron impairmenl. Increases in value arising on the revaluation of fixed asset investments are taken lo a fixed asset investment revaluation reserve via the stalemenl of comwehensive income and expenditure. Surplus ot losses on sale of investments are taken lo the slalemenl of comprehensive income and expenditure. Formal valuations investment propwlies are usually carried oul by a professional valuer and a formal valuation was last carried out by Bidwell's lo provide a valuation for 30 June 2020. Valuation gains and losses are credited {or debiledl lo the statement of linancial aclivilies wilh the bala￿ sheet reflecling the rev81ued amounts. No deprecialion is charged on investment properl￿S. Homerton College 33

Principal a¢¢ountlng policies 30 June 2021 Sto¢k$ Stocks are valued al the lowei of Cosl an(J nel realisable value. after any necessary provision for slow-moving arKI obS(￿ete items. Creditors and provisions Creditors and provisions are recognized. when there is an obligalion al Ihe balance sheel dale as a result of a pasl evenl, il is w)bable Ihal a transfer of economic benefil will be required in selllemenl, and the amoutbl ol Ihe selllemenl Can be estimated reliably. Creditors and provisvJn5 are recognised al Ihe amounl the College anlicipales il will pay lo sellle the debt. Debenluies and bank loans are a form of financial instrument and are included in the balance sheet al cost. A market rale of inleresl is charged on these liabilities, which is laken lo the statement of comprehensive income and expenditure. Deferred rental income is released lo Ihe slalemenl of ci)mwehensive income and expendilufe evenly over the lease period. It is not discounle(I lo the present valL¢e of the ir*ome because il is not a financial inslrument as defined by sections 11 and 12 of FRS 102. Contingent liabilities A conlingenl liabilily aiises from a pasl evenl Ihal gives the Cdlege a possible obligation whose existence will only be confKmed by the occurrence or otherwise of uncerlain future events. not wholly within the control of the Cdlege. Conlingenl liabilities also arise in circumstances where a provision would olheNise be made bul either il is not probable that an outflow of resources will be required or Ihe amount of the obligation cannot be measured reliably. Conlingenl liaim1il￿S are rK)t rec(NJnvzed in Ihe balance sheet bul are disclosed in Ihe noles. Provisions Provisions are recognised when the College has a preser)t legal or conslruclive obligation as a result of a past event. il is probabte Ihal a transfer of economic benefit will be required lo sellle Ihe oblsgalion and a reliable eslimale can be made of the amount of the obligation. Homerton College 34

Principal aG¢ounting policies 30 June 2021 Taxation The College is a registered charily {numbe¥ 11374971 and is a charily wilhin the meanir ol Seclion 506(1 l of Ihe Taxes Act 1988. Accordingly. Ihe College is exempl from laxalion in respect of income or capilal gains received wlhin Ihe categories covered by Seclton 505 of the Taxes Act 1988 or Section 256 of Ihe Taxation of Chargeable Gains Act 1992 10 the exlerbl Ihal such Ir￿oMe or gains are applted lo exdusively charitable purposes. The College receives no similar exemption in respecl of Value Added Tax. Contribution under Statute G. 11 The College is liable lo be assessed for a Contribution under the provisions of Slalule G, 11 of the University of Cambridge. This contribution is used lo fund grants lo Colleges from the Colleges. Fund. The College may from lime lo lime be eligible for such grants. The liability for the perKJd is as advised lo the College by the University based on an assessable amounl derived Irom the value of the College's assets as al the end of the previous financial year and an estimale of its Conferen￿ income for the current year. Reserves Reserves are allocated belween reslricled and unreslricled reserves. Endowment serves include balances which, in respect of endowment lo the College, are held as permanent funds, which the Cdlege must hold in perpeluily. Reslricled reserves i￿ude balances in respect of whth the donw has desi9naled a spwrfic purpose and therefore the College is reslrtcled in the use of these funds. Homerton College 35

Nole% to the financial statèments Year lo 30 June 2021 Academic fees and charyes incorne 2021 £'ooo 2020 £'ooo College fees Fee income paid on behalf of Undergia(knles at Ihe PuiIvalty-fu￿1￿I Undergraduate rate Per capita lee'.£4,6251£4,500l201￿20." £4.W251£4.SK)} 2,291 2,180 Priv1( tety-funded Undefgraduale fee irK(¥ne Per capita fee.'£9,3901 £9.0251£8,2051£7,37512019-20..£9.(r251£8.20&£7,375. E6.9901 Fee income ieceived al Ihe Graduale lee fale lirKiudry PGCES) Per capita fee.. £4,0691201920'. £3,911) Incorne from Cambiidge BLKsary s￿￿￿￿e 1,021 925 1.789 1,802 300 2fj2 5,401 5,169 Resldences. catering and Confe￿nceS In￿Me 2021 £'ooo 2020 £'ooo Accommodatson College members Confefences Catering College members Conferences Colophm C(￿ferenceS Accommodation Calgring Intemalional Programme College bar 2.374 2,375 267 353 7Y3 169 138 172 389 16 42 2.745 4,345 Investments 2021 £'ooo 2020 £'ooo Arbalysls of Income Land and buildings Quoted securities Cash deposls 1,980 2,215 1,308 1,575 30 3,820 3,288 2021 £'Doo 2020 £'ooo Analysls of expenditure Fees 429 417 429 Homerton College 36

Notes to the flnancial statemènt$ Yeaf lo 30 June 2021 Donations 2021 £'ooo 2020 £'ooo Unr&stri¢led donalions 355 248 Unr8slricled bga¢ies 1,047 1.402 248 Other income 2021 £'ooD 2020 £'ooo Servicing and recharges to the Urtriversrfy ol CamiYKbJe Miscellaneous income Furlough grants Olh8r trading income ICok)kale LLP. C(Wonl Other finance ts(xne'. Inleresl on ￿n￿on scheme ass8ls ItK>te 211 Olher pension schem8 fIna￿e costs Imle 21) 479 147 320 520 424 302 12 33 328 492 393 893 Education expenditure 2021 £'ooo 2020 £'ooo TeachirrfJ Tutori Admissions Research S¢hoJarships and bursari8s awards Othar educational [￿llItieS 2,843 1,141 B41 348 787 327 6.287 2.800 1,125 841 317 744 516 6,343 Resldences, catering and conferen¢e5 expenditure 2021 £'ooo 2020 £'o(x) Accommodalion College members Confer6ncÈs Catering Coll8g8 rn8rrbers Conferences Colophon conferencos Accomrnodalion Calering Irbt9ffl8tional Programme College bar 3,326 11 3.092 229 1,524 1,503 87 235 88 365 34 4,895 5,657 Homerton College 37

Notes to tho financial statements Year lo 30 June 2021 Othgr expenditure 2021 £'ooo 2020 £'(x)o ColÈ8ge admlnlstration Pay expendilure.. Directorate Administr8l¢ve slaff 17 1,462 1,479 16 1,479 1,495 Non-pay expenditure.. B(tilding iepaiis and maintenance Fu81 and Irght Rates Depreciat￿n.. buildirvJs Depreoialion.. fumilure and equipment Oebenlure interest payable olher tradi￿ cos15 ICrth)kate LLP. Ci*)phMI Olher expenses RèclasdfralKJn ol costs io resKJence. calerirvJ aFKI c(M)ferewes 124 100 143 101 25 528 54 1,127 15 403 44 518 55 1,127 18 81 15231 3,059 3,855 A propoflion of olher expenses have been reallocated lo residences for Conferen￿ accommodation ¢har9es. Analysis of expendlture by activity Staff Costs {nole 101 Other (h)eialing expenses £'ooo D&precialion And mortisalion E'OOO Total £'ooo 2021 £Y)(KJ EtkJ¢ation Inole 61 Residences. ca18rirrfJ aThl COnferen￿S Inole 71 Inveslmenl managemenl cosls Other (note 81 contributi￿ under slalut8 Gll 3,799 2.123 365 6,287 2.175 1.182 429 1,53B 4.895 429 1,479 1.794 582 3,855 38 15,504 7.453 2,485 Slafl cosls (nole 10) Olh8r Deprecialion oper8h.ng And expenses 8ffl£¥1isation £'o Tolal £t)00 2020 Educalion (nole 6J Residenc8s, calerin9 and conferencés (nole 7) Inveslm8nl Managen￿￿1 cosls Other (nole 8) Conlril3ulion under slalvte Gll 3.519 2.441 383 6,343 1.949 2.283 1,425 5,66T 417 1,495 989 575 3,05 37 37 6,963 6. 167 2,383 15,513 Homerton College 38

Notes to the financial statements Year lo 30 June 2021 Analysis of expendilurè by activity Icontinuedl 2021 £'ooo 2020 £'ooo Auditor's remuneratio Other operating expenses i1￿lUde.. Audit fees payable lo Ihe col￿ge.$ exlernal a￿1110[ Other fee5 payable lo Ihe College's exi8rnal a￿111(¥ 25 32 27 38 10 Staff costs Colk98 Fellows & other Jemics Non- academtC5 £'o(x) Tothl 2021 £'oDo £'O(M) Emoluments S(tial security costs Olher pension cosls 1.828 3.377 5,205 167 279 446 331 1.471 1,B02 7,453 2021 Total funds 2,326 5,127 C￿tsge Fellows & olher academics academics To181 2020 £tioo EM￿UMentS Social security costs Olhw pension costs 1,687 148 271 3,611 272 974 5,298 420 1,245 2020Totèl funds 2, 106 4,857 6,963 Al Ihe Balance Sheet dale there were 67 mefflbers of the Governing Body. During the year the average nurnber receiving remuneration was the 48 shown below. 2021 staff number 2020 stall number Number of FUll-tI￿ fellows equlvalent Number of fellows Fvll-time equ¥valents Acad8mic 48 48 Non-academ 117 117 119 119 48 Homerton College 39

Notes to the financial statements Year lo 30 June 2021 10 Staff costs Iconlinued} The number of officers and employees ol Ihe ColwJe. inthding Head of House. who received [emUr￿[allon In Ilie lollowiw ranges was.. 2021 £'ooo 2020 £'ooo £100,(X)1- £110.0(K) £110,tx)1- £120,OLKJ £120,(X)1 - £130,000 £130.tx)1 - £140,000 R8muneialion includes salary. emptoyerfs nalional insvwce cOn￿lbUl10n5, ￿[￿￿0ye¢S pension contribulions plus any laxable benefils glher pa￿, payatAe or prowded, uross of any salary sauifice 8rTangements. Key managefflentpersonn81 Key management personnel are I￿se persiwts having authority and responsibility for planning, difecling, and controlling the activities of the College and a￿ deemed lo comprise the senior officers Ilsled on page 2. Aggregaled emoluments (consi51ing of salary and taXa￿e benefits, Ixjl excluding any employer's pension conlribulion} were as fdlows.. 2021 £'OOD 2020 £'(x)o Key management P8Tsonnel 601 601 501 501 11 Intangible fixed assets Boathouse ense £'(K)O Computer software £'ooo Total £'ooo Consolldatgd and College Cost I valuatlon Al beginning of year Additions al cost Ai end ol ye81 176 21 506 21 330 197 527 Amortlsatlon At beg#ining ol year Charge lor the year Al end ol year 53 32 85 28 78 Carrylng amount AI 30 June 2021 AI 30 June 2020 323 327 119 442 453 Homertoi) College 40

Notes to the financlal statements Year lo 30 Jtjne 2021 12 Tangibl8 fixed assets Cdlege A&88ls buildings tjnd and sile construdion £YJoo Furnitu￿, rittitTrJs ancl eqvipmenl £'ooo Total £'ooo Consolidated Cost At beginniryJ of Additions at cost Disposals Al end of year 113.3eA) 3.866 6.023 3.250 517 125} 3.742 120,476 6,540 1251 126,991 113,360 9,889 Depreciation Al beg￿nIng ol year Charge for Ihe year Disposals Al end of year 10,675 2.123 2.519 330 13,194 2,453 1251 15,622 1251 2.824 12.798 N•t book value AI 30 June 2021 100.562 9.889 918 111,369 At 1 July 2020 102,685 3,866 731 107,282 College As5els buildings under and sile construc￿{ £'ooo £'(K)O Furniture, rrttings and equtpmenl £'ooo Total £'ooo College Cost At beginniThJ of year Additions at cost Disposal Al end of year 113.360 3,866 6.023 3.142 517 1251 3,634 120.368 6,540 1251 126,883 113,360 9,889 Depreclatlon Al beginning of year Charge for ihe year Disp05als Al end ol yea 10.675 2,123 2,431 322 1251 2,728 13,106 2,445 1251 15,526 12,798 Net book value At 30 June 2021 100,562 9.869 111,357 Al 1 Jul 2020 102,685 3,866 711 107.262 Additions include the costs for AB C third floor refurbishmenl to Furnilure, Fixlures and Equipment. Additions of assets under construction represent fees arKI conslruclion costs on the Dining Hall. Homerton College 41

Notes to the financial statements Year lo 30 June 2021 12 Tanglble fixed as$ets Iconliniied} Land and bulldings As permilled linder FRS 102, Ihe ¢l)arily lias elecled lo deeiii a valuation ol land and buildinyb prior lo the Iransilion dale as deemed cost. Land and buildings owned al 1 July 201 d are included In Ihe financial slalemenls al a valualion made al 31 July 2013. which was updated by the Governing Body lo arrive al a valuation as al 1 July 2014. Willi effect from 1 July 2014 the values assigned lo these properties are now Ileemed Iheii cosl. Land was valued al 1 July 2014 al £14.gm and buildings were ¥al￿ed al £64.8m, giving an overall value of £79.7m. The biiildings are being depreciated from 1 July 2014 over 40 years. The original professional valuation was wepared adopling Ihe lollow¥vJ bases.. College houses - generally used for sludenl and staff accomm(xlalion. weTe valued at open market value for exisling use. College sile- due lo the specialised nature of Ihe College's aclivilies. Ihe principal melhod of valuation of land and buildings was open market capital value for existing use oli a depreciated replacement cost basis. Land and buildings purchased on or afler 1 July 2014 are ir￿lUded in the financial slalenienls al C051, less accumulated deprecialion over 50 years. Olher langible fixed assets are staled al cost. Included wlhin College buildings and sile is freehold land as at 30 June 2021 of £22.9m 12020= £22.9ml. The insured value of freehdd buildings as al 30 June 2021 was £96.2m {2020.. £87.3m} induding limiled cover for irrecoverable VAT and the costs of related Professional fees. The insureis are going lo revalue the whole sile for insurance purposes wiihin the next two years. 13 Investments Oll) invest- ents In￿lmen¢ nd PAtsinÈ5S Cenif6 QLK>led S￿ri11e5 £'(K)O Total 2021 E'OOO Consolklatod £Tr)o £'o Al begiming of year AddilK)ns llisposals Gains ch￿ge in cash balance5 and de1m￿ts hthl ai fund managers Al end of year 6.IK)O 42,7 62.027 26.577 140,504 Z2.975 2.237 2,505 133,014 29.082 140,5041 26,325 2,7￿• 573 91.648 573 148.490 6.￿0 45.5(Kl 4.742 Oll) Invest- fflenls £'orx) Inveslrnenl Business Cenlre Qwled secuiilie5 Total 2021 £'ooo Colltgtr Al beginniNJ of year Additions Disp05als Gains Chan9e In cash balant*s and dep)sits hekj al fund managers 42,750 82.027 26.577 140.504 22.975 2.277 2.505 133.054 29,082 140,5041 26.325 2,750 573 91.648 573 14B.530 Al en(1 of year 45.500 4.782 Homerton College 42

Notes to the financial statements Year lo 30 Jltne 2021 13 Investments Icontlnuedl The m*kel value of investments vras rewesenled by.. Consdldated College 2021 £'ooo 2021 £'ooo 2020 2020 £'ooo Investment land Homerton Gardens Quoled seGurilies- equilies Fixed interest secufilies Cash held for reinvestment Other inveslmenls 6.6(M) 45,5(M) 78.833 10.259 2,556 4,742 148,490 6.￿0 42.750 72.611 7.433 6,600 45,500 78.833 10,259 2,556 4,782 14B,530 6,000 42,750 73,611 7,433 1,983 2,277 133,054 2,237 133,014 The College's quoted securities period erwj maTkel valuations are provKled by the College's investment managers. Rolhschikl Weallh Mana9emenl and UBS AG. The investment land was revalued by Bidwell at £6.6m on 30 June 2021 12020-. £6ml. The v8lualion is underÉaken on the basi5 of open market value takj.ng account of the College's eslales strategy for the lulu¥e use of th￿ land. The increase in Ihe value of H(xnerton Gardens at £45.5m (2020.. £42.75m} reflects the Tevalualion by Bidwell al 30 June 2021. Thr6 has been valued based on the rental yield lo be achieved under the Scheme. Other investments comprise" Investments in subsidiary un(krtakings £'(x)o IrN8Stmenl in jLMnl venlure £x)(x) Other inveslments Total £'o(xJ £'ooo Al beginning of year Investment in Waril Grirrm LLP Al end of year 1.697 2,505 4.192 10 2.277 2,505 4,782 580 10 Inveslmenls in subsidiary arKI joint venture underiakings comwise.. Name Country Cla55 of share5 Activity Colophon Limited England and Wales Ordinary 11XJ Commercial conferencing and olher trading Cdokale LLP Entland and Wales See below See below ProperEy managevnenl Ward Grilfin LLP England and Wales See bekn¥ See betow Propet1y management Homerton College 43

Notes lo tlio financial statenlents Year lo 30 Junp. 2021 13 Investments l¢ontlnuedl Colokale LLP is a liiniled liability parlnership and hence has no share ¢3pilal. Until 25 Mar¢l), 2019, the membeTS of the LLP comprised HBC1 Limiled and Colophon Limited. Each member appointed a represenlalive to the Management Board. From 25 IAarch 2019, the members ol Colokale LLP comwise Homeilon College and Colophon Limited. The income and expenditure for Colokale LLP for Ihe year ended 30 June 2020 induded in the consolidated linancial statements is as lollows.. 2021 £'Doo 2020 £'ooo Turnover Cosls l A(kninislia1i￿ expeb)ses 12 19 14 Ward Griffin LLP is a limited liability partnership and hence has rK) share capital. The members comprise Homerlon Cdlege and Sl. Marl5 School_ Each member appoints two appointed represenlalives lo the Managemenl Board. Certain key decisions require (he consent of both parlners. so the LLP has been accounted foT as a joint venture. The College's share of Ward Griffin LLP included in these financial stalemenis is as follows.. 2021 £'ooo Turnover Costs l Adminislrative 9yperws 2021 £'ooo Assets under C(￿Struc￿.0n Liabililies due within on8 year Hornerton College's share of nel assets 4.192 4,192 14 Stocks onso15dated College 2021 £'ooo 2020 2021 £'ooo 2020 £'ooo Goods for resale 30 27 21 17 30 27 21 17 Homerton College 44

Notes lo Ihtr flnancial statements Year lo 30 June 2021 Trade and other receivables Consolidated Co118ge 2021 É'ooo 2021 £'ooo 2020 £'ooo 2020 £'ooo Trade debtors 704 1,018 654 923 Amounls du8 from subsidiary urtdèrtakK￿s Prepaymenls and accrtred ir￿C￿e 389 1,142 1.846 1.149 2,147 1.331 2,643 2.351 16 Cash on$olSdat8d College 2021 £'ooo 2020 2021 £'ooo 2020 £'O(K) Cash at bank 4.361 2.172 4.275 2,098 Cash In hand 4.363 2.174 4.276 2,0gg 17 Creditors: amounts falling due wlthln year Consolldatgd College 2021 É'ooo 2021 £'ooo 2020 £'ooo 2020 £'ooo Trade creditors 1.115 680 1,116 Amounts due to sUbS￿lary und8rtakin95 Other taxat￿￿ and social security Contribution to Collegeg Fund Islatule G.11) Other creditors and accruals Deferred rental incorne Inote 181 Other delerrad tntx)me 37 114 37 737 114 37 1.793 32 62 3.153 737 38 1NOO 32 1,380 32 34 1,777 32 41 3,154 43 2.932 2,901 Homerton College 45

Notet¥ lo tli¢ linaiicial statemgnts Year lo 30 June 2021 Creditors- amounts falling due after one year 2021 £'ooo 2020 £'ooo Consolldated and College Oebentuies Lloyds revolvtng Ciedil lacility Deferred renlal ￿cOMe 29,862 29.855 4,0(Kl 2.614 36.469 2.582 32,444 During 2013-14 the Cdlege pailicipale(J in a bond issue jointly with a number of other Cambridge colleges whic17 raised £10m (before deduction of fees) of long term unsecured funding. In Augusl 2015 the College participated in ils 0¥￿ borHJ issue whi¢h raised £20m of long-lerm unsecured funding. The debenluies are wh(Aly repayable al the end of their respeclive terms an(i are slruclured as follow5: Int8iesl rale Ifixedl Ainount £'ooo Debenturès Term Tranche 1a- CCF IOctd)er 20131 Tranche 1b- CCF Ioctober 2013) Tranchè 2-. CCF (January 20141 Private Pl8G8ment- HemiitlPrudenlial {A￿juSt 20151 Fees deducted 30 years 40 years 30 years 25 Years 4.40% 4.40% 4.45% 338% 3,211 2,569 4,220 20,000 11381 29,862 On 14 June 2019 the College s￿ned a £10m revdving credit facilily wilh ils bankers, Lloyds plc, lo fund 11)e New Dining Hall developmerbt. The ￿￿11 facilily is for 5 years, anij £4m had been drawn down on 30 June 2020, il was decided. after we had drawn down the remaining £6 million. to repay the £10 million and close the facility. This was repaid on 28 May 2021. Deferred rental income represents the deferral of MOTr￿$ received from the Universily of Cambridge Education Faculty for the grant of 2 99 year lease in 2005 over It￿1r new building that has been constructed on the Ccdlege sile. The receipt is being released lo the sialemenl of comprehensive income and expenditure in equal annual instalmenis over the lease lem). 19 Provisions for Ilabllltles and charges 2021 £'ooo 2020 C'ooo Consolidaled and College At beginning ol yeai Benefits paid Cha￿e lo income and expenditure accounl Changes in acluarial assumptions At end of year 460 1351 {5 78 416 145} 11441 233 498 460 The provision felales lo t1￿ College'5 liabilily lo enhance the pensions of leaching staff who have Tetired early. Homerton College 46

Noles lo the linancial statements Year lo 30 June 2021 20 Contingent liabilities There are £nil conlingenl liabilities as al 30 June 2021 {2020". £nill. 21 College pension schemes 2021 £'ooo 2020 £'ooo Consolidated and College Deficil under Cambitdgeshire County Pen&on Furkd Liabilily lor deficit reduction payment urwjer Univef%ties Superannuation Scheme Daficil al end of year 13.5041 13,8941 {574) 15831 14.0781 14,477) The College part￿paleS in Iwo pension schemes. Universilie5 Superannuation Scheme lUSS} and Cambridgeshire County Council Pension Fund ICCCPFI. The CCCPF is parl of the Local Government Pension Scheme {LGPS). Both schemes are defined benefil schemes Ihal are externally funded and contracted out of the Stale Second Pension. The assets of the schemes are held in separate Iruslee-adminislered funds. The College is unable lo idenlify ils share of the underlying assets and liabilities in respect of the USS scheme on a consislenl and ieason8ble basis an(J therefore, as required by FRS 102. accounts lor the scheme as rf il were a delined conlribLJlion scheme. As a re5uII, the amounl chaTged lo the income and expendilure account represents Ihe conlribulions payable lo the scheme in respecl of the accounting period. CCCPF has been able lo apportion a percentage of its funds, assets and liabilities relating lo the College and therefore the scheme has been Irealed as a delined benefil scheme in the financial slalemenls. The discFosure requKements of FRS 102 in relalk)n lo these schemes afe shown below. The College is required lo contribute a specrfied percentage of payroll costs lo the pension schemes lo fund the benefits payable lo the Ix>mpanys employees. In 2021. the percentage was USS.. 21. 10/. 12020.. 21.1%) and CCCPF= 18.OV• April 2021 (April 2020: 18.1¥01. lolal pension cost for Ihe Cofiege arKI ils subsKlkgries for the year lo 30 June 2021 was.- 2021 £'c￿0 2020 £'ooo Servrce cost of USS Currenl seNce cost of CCCPF ILGPSI Toial pens￿￿ ￿51 295 1,507 1,802 1,256 1.245 The lalesl valuation5 of the schemes assels and liabilit￿$ for which results are available.. uss CCCPF ILGPSI Dale of valuation Market valuation ol ass8ls Pasl servic8 liabilities Def￿11 of asseis 31 March 2018 £63,700rn £67.300m q3.600lm 31 Maich 2019 £3,193m £3,2Q4m £111lm Homerion College 47

Not05 to the finailcial statements Year lo 30 June 2021 21 College pension schemes {¢ontinued) uss The appoinlmenl ol directors to Ihe board ol Ihe ituslee is delein)iiied by Ihe Irusleè eoinpai)y's Articles ol Asso¢ialion_ Four of Ihe diieclors are appoinled by Universities UK., three are appointed by the University and Colle9e UnK)n. of whom at least one musl be a USS pensioner member,. and a mininium of two aiid a maximum of four ale co-opted directors appointed by the board. Under the scheme Irusl deed and rules, the employer conlribulv)n rale is delermined by the IrLtslee, acting on actuari81 advice. As al Ihe 30 June 2021, the latest available Com￿ele acluaiial valuation of the Retirement In¢oMe Builder was al 31 March 2018 Ilhe valuation dale). which was carried out using the piojecled unil melhod, Since Ihe year end Ihe valuatKJn as al 31 March 2020 was signed and filed with The Pensions Regulalor wilh an effective date of 1 Oclober 2021. As the new valuation was not in place al Ihe financial year end. any adjuslmenl in the deficit provision will be reflected in the financial slalemenls for the year ended 30 June 2022. Since (he inslilulion cannol idenlrfy ils share of USS Reliremenl Income Builder assels and liabilities, the following disclosures reflect those relevanl for Ihose assets and liabilities as a whole. The 2018 valuation was the frflh valualion the scheme under the scheme-specrfic fun¢Jing regime inlrDduced by Ihe Pensions Act 2004, which requires schemes lo adopt a slalulory funding objective, which is lo have Suff￿lent and appropriate assets lo cover their technical provisions. Al (he valuation dale, the value ol the assets of the s¢heme was £63.7 billion and the value of the scheme's technical provisions was £67.3 bill￿n indicaling a shortfall of £3.6 billion and a funding ralio of 95%. Under FRS 102. a liability has been recognised to reflecl the cost of Ihe Recovery Plaii of the Scheme lo the College. Al 30 June 2021. Ihis slood al £574.000 (2020.. £583,000}, FRS 102 liability numbers have t¢en pr(Kluced f(￿ the scheme using the following assumptions.. 2021 2020 Discount wale Pensx)natAe salary growth Pr￿￿ inllalim ICPII 0.87% NIA 2.50• NIA 2.50% The main demographic assumpt￿n used relates lo the mortalily assumptions. These assumptions have been updated for Ihe 31 March 2019 accounting posilton. based on updated analysis of Ihe Scheme's experience carried out as part of the 2018 acluarial valuation. The mortality assumptions used in these figures are as follows-. The ¢urrenl life expectancies on retirement al age 65 are.. 2021 2020 Males currently 8ged 65 (years) Fernales currenlly aged 65 lyearsl Males cuffently aged 45 lyearsl Females currently a￿d 45 lyears 24.6 26.1 24.4 25.9 26.6 26.3 27.7 27.9 Homerton College 48

Notes to the financial $talement$ Year lo 30 June 2021 21 College pgnsion schemes (continued) USS (conlinued) 2021 2020 Exlstlng b•nefil$ Scheme assets FRS 102 liabilities £80.6bn £95.8bn £74.2bn f94.4bn FRS 102 delicil FRS 102 funding level £15.2bn £20.2bn 79% 84% Cambridgeshire County Councll Pension Fund (CCCPF {LGPS)) The CCCPF is a defined benefit scheme based on final pensionable salary. Liabililies are value(Y on an acluarial basis using the projected unil method which assesses the future liabilities discounted lo their presenl value. The movement in the nel surplusl{defKil) in Ihe scheme was as follows= 2021 £'oDo 2020 £x)00 Consolidated and College (Deficil) surplu5 at begtnning olyear Current serwce cost Inleresl assets Conlrtbulions by empkjyer Other finance cost Actuarial Ilossl (Deficitysurplus al end of yoar 13,894) 11.5071 328 583 13931 1,379 13,5041 13281 11,2561 492 569 15081 {2.863) 13.8941 The main assumptions used for the wrposes of FRS 102 are as follows.. 2021 2020 Disco￿1 rale R8le of increase of salaries 1.85% 3.3° 2.8% 2.61(1 2.10 Rale of increase of pen&on in payment Assets are valued al fair value, wincipally market value for inveslmenls, and comprise.. 2021 È'ooo 2020 £'ooo Equilies Bthds Property Olher 18.003 3,858 3,600 257 15,661 2,610 3,045 435 21,751 25.718 Homerton College 49

Notes lo the flnancial statgments Year lo 30 June 2021 21 College penslon schemes (Continued) Cambridgeshire Gounfy Council Pension Fund (CCCPF (LGPS)) (¢ontii?ued) The current mortality assumplions irKlude suff￿lent allowance for future improvements in mthlalily rales. The assumed life expeclalK>ns in years on relyemenl age 65 are.. 30 June 2021 30 June 2020 Cuiienl p8n&onetS Males Females Fuluie pensitsners Males F￿mal&S 22.2 24.4 22.0 24.0 23.2 26.2 22.7 25.5 30 June 2021 £'ooo 30 June 2020 £x)(xJ 30 June 2019 30 June 2018 £'ooo 30 Jun8 2017 £'(x)o 30 June 2016 £'o(x) Present value ol funded otAigalKw)s 129.222} 125.6451 121.625) (18.7521 118,6111 117,4081 Fail value of plan assels 25.71B 21.751 {3,$04} {3.8941 21.297 IY281 20.199 1.447 18,413 16,263 11981 11,1451 Pr8sent value of unlunded oblKJal￿s Net Iliabililiesl assets recorded in the balance sheel 13,5041 {3.8941 {3281 1.447 11981 11,1451 Exp8ri8vKe Ik>ssl gaSn on a&8ets 3,383 11751 337 1,092 1.137 204 Experi$nte loss (gain) ￿ l￿bIkI￿S 2.004 11.1611 {1901 15701 Arnounts chafged to income and expenditure account 2021 £'ooo 2020 £'ooo Current S￿te cosl Interest on obligat￿n Interest on ass8ls 1,507 393 13281 1.572 1,256 508 14921 1,272 Analysis of amounts reeognlsed In other comprehensive income 2021 £'ooo 2020 £'ooo Return on assets excluding arnounls irtluded in nel w)leresi Changes in financial assurTyIM)n Total ￿tUarIal loss rewnized 3,383 12,0041 1,379 11751 12.6881 12.8631 Homerton College SO

Notes to the financial statements Year lo 30 June 2021 21 College pension schemes {continued) Cambridgeshire County Council Penslon Fund (CCCPF (LGPS)I fconlinued) Changes in the present value of the (lefined benefit obligation.. 2021 £'ooo 2020 £'ooo Opening defined b8nefil oblyal Current servt¢e (Thl Intefest cost Contributions by metnbeis Changes in financial assumplion Benefits paid Closing defined benefil ot4igalion 25,645 1,507 393 206 2,004 15331 29,222 21,625 1,256 508 198 2.688 16301 25,fj45 Change$ In the falr value of plan assets: 2021 £'ooo 2020 £'O(KJ Openlng fair value ol pLgn assets Nel inleresl ConlribLrtions by members and other bodtes Conlribulions by employer Relurn on assets excluding amounts indude ￿ net interesl B8nefils paid Closing faiT Wd1￿ of assets 21,751 328 206 583 3.383 15331 2S,718 21,297 492 198 569 11751 {6301 21,751 The College expects lo contribute £577.000 lo ils defined benefit pension scheme in the year ending 30 June 2021 {2020.' £577,000} The management bases required by FRS 102 are likely lo give rise lo significant fluctuations in the reFK)rted aM￿nIS of the defined benelil Pens￿)n scheme assets and liabilities from year lo year, and do not necessarily give rise to a change in the contributions payable into the scheme, which are recommended by independent actuaries based on the expected long lerm rale of return on the scheme assets. 22 Related party transactions Owing lo the naluie of the Cdlege's operations and Ihe COmTM)silion of Ihe Governing Body. il is inevitable that trarksaclions will lake place with organi%alions in which a Governing Body member may have an inleresl. All Iransactions involving oigallisalions in which a member of the GoverniThJ Body may have an inleresl, are conducted at arm's lenglh. and in accordance wilh Ihe College's normal procedures. The College maintains a register of inleresls lor all College Council members and where any member of the College Council has a material interest in a College matter they are required lo declare Ihal fact. Homerton College 51

Notes fto the linancial slalements Yeaf lo 30 June 2021 22 Related party transactions Iconlinuedl During the yeaf no lees or expenses were paid to Fellows in respect of their dulles as T¥uslees. Fellows are remunerated for leaching, researcli 2nd other duties wilhin Ihe College. Fellows are billed lor any privale catering. The Truslees remuneration is overseen by the Fellows Remuneralioii Commillee. The salaries paid lo Trugtees in the year are summari%ed in the lable below.. Salary 2027 Number 2020 NLJmbei £nil £1- £10,000 £10,001- £20.0(y) £20.001- £30,000 £30.001- £40.000 £40.001- £50,0(xI £50,001- £60.0 £fj0.001- £70,0(M) £70,001- £80.0(xI £80,001- £90.000 £90,001 . £100,000 £100,001- £110,000 Tolal 16 16 The total Truslee salaries we £678,024 for the year {2020'. £616,755>. The Iruslee5 were also paKI olher laxable benefits linduding associ21ed employer National Insurance conlribulions and em￿0yeT contribulions to pensions) lolal £218.604 for the year {2020.' £197,409). The College has a num￿1 of trading and dormant subsidiary underlakings which are consolidated into these accounts. All substdiary undertakings are 100% owned by the College and are registered and operating in England and Wales. The College has taken advantage of the exemption wlhin seclion 33 of FRS 102 not lo disclose Iransaclions wlh vtholly owned group companies Ihal afe related partie5. Homerton College 52

Notes to the financial statements Year lo 30 June 2021 23 Reconciliatton of ￿nSol¥dated operating surplus to net cash (outflow) inflow from operating activitios 2021 £'ooo 2020 £'ooo 16681 2,352 31 1,127 13,8201 437 IDefic411 surplus on conlinuing Op￿allOnS Oepreeiation ol langible fixed assels (note 121 ATnortisalion ol inlangiiAe fixeil asseis Inl8resl payable Investment income Pensi[￿ Costs less conliibuliorbs paydb {1,7751 2,4S3 32 1,127 13,2881 E 11 Decrease11ncreasel in stocks Decrease IlrKreasel in debt￿5 (Decrease) increase in uedilors due ￿lhI7 year Decreas8 in Creditors due #i more than ￿)& yea Decrease in provk4ons OpeTaling loss on joinl ￿lUIe Nel cash louillowl inflow fr(xll operaling aclrvibes 505 1221} {251 1401 15) 1260) 1631 16211 1241 11891 1.4331 24 Cash flows from invgsting actlvitles 2021 £'ooo 2020 £'OOD Investment irKome received 8ank interest re￿iVed Purchase of langible fixed assels Purchase of int￿Ible fixed assets Purchase ol investments Pro¢8eds of distxjsal of invesln*nls Tolal cash flows from invests"n9 acltvities 3,288 3.7￿) 16,5401 {211 (20.0821 40.504 8,149 111,2631 11331 121,7011 22.526 16,7511 25 Cash flows from flnanclng activities 2021 £'ooo 2020 £'ooo Inte￿$t p￿d Nel Loan Borrow1￿ I (Repayment) Total cash flows from (￿an￿1r￿j a¢liWies {1,1271 (4,0001 15,127) 11.1271 4.000 2,873 Homerton College 53

Notes to the financial statements Year lo 30 June 2021 26 Consolidated reconciliation and analysis of net debt Oih&r non-ca5h changes E'OtK> AtlJu 2020 Cash AI 30 June 2021 £'ooo Ct)nsolidated Cash and cash equivalents Cash at bank and in hand Cash hekl wlh fund managers Irv)te 131 2,174 2.189 573 4,363 2.556 6,919 4,157 2.762 Borrowlngs- amounts falllny du¢ after More than one year Debentures Inot8 181 Lloyds revolwng ¢redil faclily Irkole 181 129,8551 14.0001 133.8551 129.8661 4.0(K) 4,000 129.8661 129.6981 6.762 122.9471 27 Financial instruments 2021 £'ooo 2020 £'o(xJ Financial assets FAnancial assels al faw value Ilwh Stalemenl Ofconvel￿￿Ve Listed equily inveslmenls Fixe(5 int8resl securilses Finanoal assels thal are eq￿lY ins1run￿Is mea8¢￿ed al cosl 18Ss inwairmenl 78,833 10,259 72,611 7,433 Olh8r equtty inveslmenls Finan￿al assels Ihat are Ibbl ins1rUn￿rfS n￿a$¢￿e￿al ￿m￿lIS8dc0sl . Cash and cash equivalents . Tr￿e d8btors 4.742 2,237 4,363 704 4.157 1,018 Flnancial liabilit185 Financial liabililies measwed al amNtisedcost Dgbenlure$ Revolving credit facility . Trade creditors 129,8621 {29.8551 14.0001 (6821 28 Capital commitments Land aT￿ buildlngs 2021 E'O(KI Land build￿98 2020 £'ooo Aulhorised and conlracled lor Authorised kmjl not yet contracled for 6.857 10,221 13,818 4,161 Homerton College 54

Notes to the financial statements Year lo 30 June 2021 29 Post Balance Sheet Event sin￿ the year end, following the COM￿et10n of the 2020 acluarial valuation. 8 new deficit recovery plan has been agreed in respect of the USS pension scheme. A new Schedule of Contributions based on Ihe 2020 a¢luarial valuation has been a9reed. and become effective, post year end. This results in an increase of £1.037m in the provision for the obligation lo fund Ihe del￿11 on the USS pension which would instead be £1.611 m. As the Schedule ol Contributions was nol in place al the financial year end this adjuslmenl will be reflected in the Financ￿1 Slalemenls for the year efided 30 June 2022. If the Joint Negolialing Committee {JNC} recommended deed on benefil changes has nol beer) exe¢uled by 28 February 2022 then a diffeient schedule of contributions would become applicable. If this were lo happen then there would be an incJease of £1.999m irk the provision lor Ihe obligation lo fund Ihe deficil on the USS pension which would instead be £2.573m. Homerton College 55