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2020-07-31-accounts

PEMBROKE COLLEGE Annual Report and Financial Statements

Pembroke College Annual Report and Financial Statements 31[st] July 2020

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Annual Report and Financial Statements

PEMBROKE COLLEGE

Governing Body, Officers and Advisers 3-6
Report of the Governing Body 7-13
Auditor’s Report 14-16
Statement of Accounting Policies 17-21
Consolidated Statement of Financial Activities 22
Consolidated and College Balance Sheets 23
Consolidated Statement of Cash Flows 24
Notes to the Financial Statements 25-43

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PEMBROKE COLLEGE Governing Body, Officers and Advisers Year ended 31 July 2020

MEMBERS OF THE GOVERNING BODY

The Members of the Governing Body are the College’s charity trustees under charity law.

During the year, the activities of the Governing Body were principally carried out through five committees:

In addition, the Fellows’ Remuneration Committee (6) considers matters relating to the remuneration of the members of Governing Body in their capacity as employees of the College.

The members of the Governing Body and those who served in office as Trustees during the year, and the membership of the above committees are shown below:

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(1) (2) (3) (4) (5) (6)
Master
Dame Lynne Brindley • • •
(retired 30 June 2020)
Master
Sir Ernest Ryder • • •
(appointed 1 July 2020)
Professor Lynda Mugglestone
Dr Tim Farrant •
Professor Jeremy Taylor
Professor Stephen Whitefield
Professor Owen Darbishire Vicegerent • •
Professor Adrian Gregory •
Professor Christopher
Melchert
Professor Raphael Hauser
Professor Ben Davis
Professor Stephen Tuck
Professor Theo van Lint
Mr John Church Advisory Fellow •
Professor Ariel Ezrachi •
Professor Andre Furger •
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PEMBROKE COLLEGE

Governing Body, Officers and Advisers Year ended 31 July 2020

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(1) (2) (3) (4) (5) (6)
Professor Guido Bonsaver
Professor Jonathan Rees •
Professor Rebecca Williams
Professor Linda Flores •
Professor Irene Tracey Resigned 30 Sep 2019
Revd Dr Andrew Teal Chaplain •
Dr Brian A’Hearn •
Dr Eamonn Molloy Dean • • •
Professor Clive Siviour
Mr Roger Boning Resigned 30 June 2020 •
Professor Nick Kruger
Professor Nicolai Sinai
Professor Hannah Smithson •
Professor Min Chen
Professor Ingmar Posner •
Mr Mike Wagstaff Advisory Fellow •
Professor Sandra Fredman
Professor Alfons Weber
Mr Mike Naworynsky Home Bursar • • •
Professor Tim Woollings
Professor Andy Orchard •
Professor Andy Baldwin
Dr Peter Claus • •
Professor Justin Jones
Professor Guy Kahane
Professor Henrietta Harrison •
Professor Damian Rössler •
Professor Anandi Mani
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PEMBROKE COLLEGE

Governing Body, Officers and Advisers Year ended 31 July 2020

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(1) (2) (3) (4) (5) (6)
Ms Nancy Braithwaite Academic Director • • • •
Professor Pramila Krishnan •
Professor Nick Hawes •
Mr Stephen Gosztony Advisory Fellow
Bursar
Mr Jeremy Bennett • • •
(resigned 31 July 2020)
Mrs Alice Gosling Strategic Development • •
Director
Professor Roberto Salguero- •
Gomez
Dr James Read •
Prof/Dr Ushashi Dasgupta Joined 1 Sep 2019
Prof Kevin Talbot Appointed 1 Jan 2020
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Undergraduate and graduate students were represented in the Open sessions of meetings of the Governing Body and of the Finance and Planning, Academic, Development and Welfare and Equality Committees.

Mr Peter Zakierski served as an external member of the Finance and Planning Committee until Easter 2020, and Mr Peter Robson and Mr Iain West from Easter 2020 onwards. Ms Lisha Patel, Mrs Beatrice Hollond, Mr Olivier Meyohas, Mr William Hooton and Mr Nick Millar (from 17 February 2020) served as external members of the Investment Committee.

COLLEGE OFFICERS

The Officers of the College to whom day-to-day management was delegated during the year were as follows:

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Dame Lynne Brindley (retired 30 June 2020) Master
Sir Ernest Ryder (appointed 1 July 2020) Master
Professor Owen Darbishire Vicegerent
Ms Nancy Braithwaite Academic Director
Mr Jeremy Bennett (resigned 31 July 2020) Bursar
Mr Mike Naworynsky Home Bursar
Dr Eamonn Molloy Dean
Mrs Alice Gosling Strategic Development Director
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PEMBROKE COLLEGE Governing Body, Officers and Advisers Year ended 31 July 2020

COLLEGE ADVISERS

Investment Managers

Oxford University Endowment Management Ltd Blackstone Alternative Asset Management L.P. Hamilton Lane (UK) Ltd Vanguard Asset Management Ltd

Auditor

Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW

Bankers

The Royal Bank of Scotland plc Santander UK plc

Solicitors

Blake Morgan LLP Freeths LLP Penningtons Manches LLP

College Address

Pembroke College, Oxford OX1 1DW

Website

www.pmb.ox.ac.uk

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PEMBROKE COLLEGE Report of the Governing Body Year ended 31 July 2020

The Members of the Governing Body present their Annual Report for the year ended 31 July 2020 under the Charities Act 2011 together with the audited financial statements for the year.

REFERENCE AND ADMINISTRATIVE INFORMATION

The Master, Fellows and Scholars of Pembroke College in the University of Oxford, known as Pembroke College, is an independent self-governing charitable institution. It was founded on the initiative of Dr Thomas Clayton, Principal of Broadgates Hall, who secured the necessary endowment left in legacies by Thomas Tesdale and Richard Wightwick to amalgamate several smaller halls sited along the City Wall with the fifteenth-century Broadgates Hall, to form a new College. The original statutes were drawn up by Royal Commission in 1624. The corporation comprises the Master, Fellows and Scholars. The College became a registered charity (no. 1137498) in August 2010.

The names of all Members of the Governing Body in office during the year, together with details of the College Officers and advisers of the College, are given on pages 3 to 6 of this report.

GOVERNANCE, STRUCTURE AND MANAGEMENT

Governance

The Governing Body of the College comprises the Master and Fellows. This body is constituted and regulated in accordance with the College Statutes, the terms of which are enforceable ultimately by the Visitor, the Chancellor of the University of Oxford. The College Statutes are as made from time to time by order of Her Majesty in Council in accordance with the Royal Charter of 1624, and the Universities of Oxford and Cambridge Act 1923. The Governing Body is responsible for the strategic direction of the College. It meets nine times a year under the chairmanship of the Master and is advised by a range of committees including the Finance and Planning Committee, the Investment Committee, the Academic Committee, the Development Committee and the Welfare and Equality Committee.

Governing Body

The Governing Body determines the strategic direction of the College and regulates its administration and the management of its finances and assets.

Recruitment and training of Members of the Governing Body

Members of the Governing Body have been informed about their responsibilities as trustees and are able to attend trustee training and information courses to keep them informed on current issues in the sector and on regulatory requirements.

Remuneration of Members of the Governing Body and College Staff

The remuneration of members of the Governing Body is based on the advice of the Fellows’ Remuneration Committee, none of the members of which is in receipt of remuneration from the College. Remuneration for individual Fellows is determined by factors relevant to the nature of their appointment, including University pay scales.

The remuneration of all college staff is set by the Staff Remuneration Committee.

Organisational management

The Governing Body is responsible for all the affairs of the College. It delegates the development of policies, oversight of their implementation and monitoring of key activities to five Committees which report regularly to the Governing Body :

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PEMBROKE COLLEGE Report of the Governing Body Year ended 31 July 2020

The day-to-day running of the College is delegated to the College Officers, listed on page 5. The College Officers refer all major issues to the relevant College committee or directly to the Governing Body.

Group structure and relationships

The College administers many special trusts and funds, as detailed in Notes 20 and 21 to the financial statements. The College has two wholly owned non-charitable subsidiaries: Pembroke College Enterprises Limited, which undertakes the College’s major building works, and Pembroke College Conferences and Events Limited, a company limited by guarantee, which lets College facilities when not required for its own educational purposes. The profits of both subsidiaries are donated to the College under the Gift Aid Scheme. The subsidiaries’ aims, objectives and achievements are covered in the relevant sections of this report.

The College is part of the collegiate University of Oxford. Material interdependencies between the University and the College arise as a consequence of this relationship.

Risk Management

The College is engaged in risk assessment on an ongoing basis. When it is not able to address risk issues using internal resources, the College takes advice from experts external to the College with specialist knowledge. Policies and procedures within the College are reviewed by the relevant College Committees. Financial risks are assessed by the Finance and Planning Committee and investment risks are monitored by the Investment Committee. In addition, the Home Bursar and heads of department meet regularly to review health and safety and other related issues. Training courses and other forms of career development are provided to members of staff to enhance their skills in risk-related areas.

The following are the most important risks for the College:

Covid-19

The College has continued to operate efficiently and effectively throughout the Covid-19 pandemic primarily as a result of its employment of key members of staff with sufficient management experience and expertise to be able to respond to the changing demands associated with the national response to the pandemic. The response has been similar, but not identical to that required in the event of a major catastrophe. Given this, as indicated above, the College has revised its risk register to include specifically exposure to a pandemic

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PEMBROKE COLLEGE Report of the Governing Body Year ended 31 July 2020

event. On the basis of its experience during the year, the College is satisfied that this specific risk can be managed by means of delegated authority from the Governing Body to College Officers, in turn, to oversee activity managed by the Home Bursar with support from Heads of Department across the College.

The Governing Body, which has ultimate responsibility for managing risks faced by the College, has concluded that adequate systems are in place to manage these risks. It recognises that systems can only provide reasonable and not absolute assurance that major risks have been managed.

OBJECTIVES AND ACTIVITIES

Charitable Objects and Aims

The College’s objects are to advance education, scholarship and research through the provision of a college in the University of Oxford.

The Governing Body has considered the Charity Commission’s guidance on public benefit and in keeping with its objects, the College’s aims for public benefit are:

The aims set for the College’s subsidiaries are to help finance the achievement of the College’s aims as above.

Activities and objectives of the College

The College’s activities are focused on furthering its stated objects and aims for the public benefit.

Public Benefit

The College advances public learning by providing higher education for undergraduate and postgraduate students within Oxford University, and by supporting the pursuit of publicly disseminated research. In 2019/20 the College had 404 undergraduates (including 30 visiting students), 208 graduates, and 61 Tutorial and Research Fellows who had contractual obligations to teaching and to research.

The College provides public benefit by offering higher education to its undergraduates, mostly through the tutorial system which provides the opportunity to meet with a tutor on a weekly basis during term time. In addition, the College provides classes, seminars and other forms of teaching, as appropriate, in conjunction with the University's departments. To support student learning, the College also provides the use of the College's library, meeting rooms, auditorium and accommodation. The College actively promotes the wider cultural and social education of its students through music, drama, sports, careers advice and in other ways.

The College also advances research in a range of disciplines by employing academics who have a contractual obligation to undertake published research and providing them with a supportive academic atmosphere, including the provision of research grants, library and computer facilities, office accommodation and meals. The research activities of the majority of College fellows have been audited by the National Research Assessment Exercise; that research is disseminated through published papers, books, websites and lectures. The College supports the research of academics who, at the beginning of their careers, have already shown outstanding promise in their chosen field of research by supporting six Junior Research Fellowships. Research is also supported through lectures and the provision of facilities to research centres and programmes.

The College offers undergraduate places on the basis of academic merit. The College aims to attract students who are able to benefit the most from an Oxford education regardless of sex, gender, income, ethnic origin, religion, previous education opportunity or disability, and actively works to recruit students from non-traditional backgrounds.

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PEMBROKE COLLEGE Report of the Governing Body Year ended 31 July 2020

During the academic year 2019/20, financial support was available to undergraduates from the UK/EU to assist them with the costs of tuition fees and living costs whilst at the College. In addition to student loans provided by the Student Loans Company, which are available to undergraduates from within the UK/EU, Oxford Bursaries and Crankstart Scholarships are available to undergraduates from lower income households at the College.

Graduates at the College form an important part of the academic community. Every graduate student is assigned a College Graduate Adviser who provides academic and pastoral support. Funding is available for some graduate studies and for exceptional graduates there are a number of scholarship funds available, administered by the University, the College or other sources.

The College awards a number of scholarships and exhibitions each year to undergraduates on course, based on their academic performance. In 2019/20, 60 scholarships and 41 exhibitions were awarded to undergraduates and 39 scholarships to graduates. In addition, a number of additional academic prizes are available to undergraduates and graduates at the College that are awarded on the basis of academic excellence. These scholarships, exhibitions and prizes serve further to encourage academic endeavour at the College. The College also provides travel grants to meet costs involved in undertaking research.

The Governing Body has considered the processes in place during the financial year ended 31 July 2020. It is satisfied that, with regard to public and publicly accountable funds received from the University of Oxford (out of grants from UK Research and Innovation, other agencies and student fees) for the year ended 31 July 2020, the arrangements for achieving economy, efficiency, effectiveness and value for money were appropriate. In making this confirmation, members of the Governing Body are cognisant of their obligations as charity trustees to ensure that funds are correctly applied in line with the objects of the College.

ACHIEVEMENTS AND PERFORMANCE

It is pleasing to report that in 2019/20 that outstanding results were achieved by the College’s students in their final exams. The rolling average of First Class degrees over a 3-year period is 39%. On the same metric, 96% of undergraduates achieved First Class or Upper Second Class degrees. Combined with a number of prestigious University prizes across a wide range of subjects, this represents another outstanding year for the College. At the same time, Pembroke students have been working to broaden their experiences and development alongside their studies, taking full advantage of the range of opportunities available to them, both within and external to the College, nationally and internationally. Thanks to the generosity of its donors, the College was also able to award a number of extraordinary internship and travel opportunities to its students.

Recognising that every effort must be made to attract the very best talent to the College, Pembroke continues to focus on its Outreach and Access activities. Through its Access Fellow, Pembroke is now widely acknowledged as a significant contributor to the OxNet Academic Access Programme, the results of which are now becoming encouraging. 42 of the State school offers made were to candidates identified as coming from educationally or socially disadvantaged backgrounds. Furthermore, 9 state school offers to UK nationals were to pupils from the North West, where the College access programme is most active.

On the non-academic side, the College continued its programme of planned maintenance, refurbishment and development. During the course of the year, the College replaced the ring main on the main site and refurbished four staircases, funding these necessary works from its own resources. In addition, in May 2020, it obtained planning permission for the redevelopment of part of the GAB Building to create an additional 77 student rooms and four flats for young academics. This major project will be funded primarily from part of the £40million loan taken out in 2019. The former, which was initially invested alongside the College’s other funds, were liquidated during the year and, at the year end, was held in a money market fund. The balance of the cost will be funded from a combination of the College’s own resources and fund-raising activity.

Further information about the College’s achievements and performance over the past year can be obtained from the Pembroke Record, which is available directly from the College.

The Governing Body acknowledges with gratitude the professionalism and commitment of the academic and nonacademic staff in responding to the consequences of the Covid pandemic.

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PEMBROKE COLLEGE Report of the Governing Body Year ended 31 July 2020

FINANCIAL REVIEW

These financial statements present the accounts of Pembroke College and its subsidiaries and include all operational income and expenditure, donations and investment income and all the assets and liabilities of the College.

The review of the year needs to be considered by reference to the period prior to the national lockdown due to the Covid-19 pandemic in March and the period thereafter. Up until the lockdown, the College performed better than budgeted but this situation reversed thereafter, primarily as a result of the loss of residential income in Trinity term and conference income after the end of that term. Notwithstanding higher investment income attributable to the investment of the private placement funds raised in 2019 and the College participation in the UK government’s Covid Job Retention Scheme, these losses resulted in total income for the year falling by £619,000.

Donations income during the year amounted to £2,978,000 (2019: £2,755,000). The College continues to be grateful to alumni and others without whose support it would not be possible to achieve the College’s objectives. Total expenditure during the year fell by £4,220,000. The primary cause of this decline was due to exceptional items in both years. The items in 2018/19 included the costs of the arrangement of the private placement bond and the break costs of the existing loan and the increase in pension liability. In 2019/20, the pension liability fell by £715,000. Stripping out these exceptional items, the expenditure for the year increased by 1.5% from £13,236,000 to £13,432,000, increases in some costs being partially offset by savings in costs due to the lower activity levels after the lockdown.

The Consolidated Statement of Financial Activities shows net income before investment gains/losses of £1,450,000 (2019 net expenditure of £2,151,000). After investment losses of £4,809,000 during the year, overall net expenditure amounted to £3,359,000. As a result, the total Funds of the College and its subsidiaries fell in the year to £87,094,000 from £90,453,000 in 2019.

The College’s liability in respect of both Oxford Staff Pension Scheme (OSPS) and the Universities Superannuation Scheme (USS) amounts to £2,268,000 (2019: £2,983,000) in total. As reported in Note 24 to the financial statements, the last valuations for both schemes disclosed deficits. The College monitors discussions regarding contributions carefully, particularly with regard to USS, and budgets conservatively with respect to the likely outcomes of these discussions.

Following a valuation undertaken during the year, the total declared value for insurance purposes of the College’s real estate amounts to £195,000,000.

Going Concern

The Governing Body has assessed the College’s ability to continue as a going concern. It has considered several factors in forming its conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements, including a review of updated forecasts and cash flows to 31[st] July 2022, a consideration of key risks – including Covid-19 – that could impact the College and the latest available management information.

The financial consequences of the Covid pandemic, and primarily the loss of income during the last five months of the financial year, disrupted the improvement over recent years in the College’s financial resilience. Having said this, the combination of a strong management team, diversification of income sources, tight expenditure control, good treasury management and the support of the entire College community have all contributed to the College’s ability to continue fulfilling its charitable objectives. As the pandemic continues, the College regularly reviews forecasts and cash flows and is satisfied that it continues to have sufficient cash resources to fund its operations.

Having regard to the above, the Governing Body is satisfied that there are no material uncertainties around the decision to adopt the going concern basis of accounting in preparing these financial statements.

Reserves policy

The College’s reserves policy is to maintain sufficient free reserves to enable it to meet its short term financial obligations in the event of an unexpected revenue shortfall or increased cost.

Total funds of the College and its subsidiaries, including long-term investments, at the year-end amounted to £87,094,000 (2019: £90,453,000). Endowment funds equated to £58,870,000, of which £41,493,000 is permanent endowment and £17,377,000 is expendable endowment. In addition, total restricted funds amount to £7,275,000.

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PEMBROKE COLLEGE Report of the Governing Body Year ended 31 July 2020

The College’s unrestricted funds at the year-end amounted to £23,217,000. After deducting an amount of £19,461,000 for the book value of fixed assets less associated funding arrangements and the pension reserve of £2,268,000, the free reserves amount to £1,488,000. The Governing Body is satisfied that, including taking into account the ongoing pandemic, the College has sufficient liquidity at the year end, amounting in total to £32,026,000.

Investment policy, objectives and performance

The College’s investment objectives are to balance current and future needs by:

To meet these objectives, the College’s investments are managed on a total return basis, maintaining diversification across a range of asset classes in order to produce an appropriate balance between risk and return. In line with this approach, the College statutes allow the College to invest with the objective of maximising the total return and to make available for expenditure each year an appropriate proportion of the unapplied total return (see below).

The investment strategy, policy and performance are monitored by the Investment Committee which reports directly to the Governing Body. At the year end, the College’s long term investments, combining the securities and property investments, totalled £79,093,000. After outperforming the benchmarks return in the last five financial years, the annualised total investment return was -2.38% on the weighted average investment portfolio available over the year, compared to the College’s strategic benchmark return of 5.12% (RPI + 3.5%). The underperformance is primarily attributable to the drop in markets following the lockdown due to the Covid 19 pandemic.

The carrying value of the preserved permanent capital and the amount of any unapplied total return available for expenditure was taken as the open market values of these funds as at 31 July 2002 together with the original gift value of all subsequent endowment received.

Under the total return accounting basis, it is the Governing Body’s policy to draw down as income 3.5% (plus costs) of the value of the relevant investments. However, to smooth and moderate the amounts withdrawn this is calculated on the average of the year end values in each of the last three years.

In line with this policy, the equivalent of 3.5% of the average three-year end opening value of the property, securities and other investments, was drawn down as income on the total return basis in the year. The Governing Body will keep the level drawn down under review to balance the current and future needs and interests of the College.

Fund-raising

Pembroke College is committed to best practice in relation to all fundraising activities. The Strategic Development Director co-ordinates fundraising activities, and is subject to the scrutiny of the Development Committee and the Governing Body. Pembroke College is registered with the Fundraising Regulator. The College has protocols and procedures to ensure that all College fundraising is open, honest and respectful, and that it adheres to legal and fundraising guidelines, including in dealing with vulnerable individuals. The College does not engage any professional third parties to carry out fundraising activities on its behalf.

FUTURE PLANS

Whilst the Covid pandemic has impacted on day-to-day operations, the College has continued to operate in accordance with the framework set by its strategy for the period from 2017 and 2027 and made good progress on a number of fronts, both academically and otherwise, as is reflected elsewhere in this report. An interim review of the strategy is being undertaken during 2020/21 to assess the continuing relevance of the various objectives and, if appropriate, to update elements of the strategy.

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PEMBROKE COLLEGE Report of the Governing Body Year ended 31 July 2020

STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES

The Governing Body is responsible for preparing the Report of the Governing Body and the financial statements in accordance with applicable law and regulations.

Charity law requires the Governing Body to prepare financial statements for each financial year. Under that law the Governing Body have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law, including Financial Reporting Standard 102: The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102).

Under charity law the Governing Body must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the College and of its net incoming or outgoing resources for that period. In preparing these financial statements, the Governing Body is required to:

The Governing Body is responsible for keeping proper accounting records that are sufficient to show and explain the College’s transactions and disclose with reasonable accuracy at any time the financial position of the College and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the College and ensuring their proper application under charity law and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Governing Body on and signed on its behalf by:

Sir Ernest Ryder Master

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PEMBROKE COLLEGE Auditor’s Report Year ended 31 July 2020

Independent Auditor’s Report to the Members of the Governing Body of Pembroke College

Opinion

We have audited the financial statements of Pembroke College for the year ended 31 July 2020 which comprise the Group Statement of Financial Activities, the Group and Charity Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

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PEMBROKE COLLEGE

Auditor’s Report Year ended 31 July 2020

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 12 and 13, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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

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Auditor’s Report Year ended 31 July 2020

PEMBROKE COLLEGE

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP

Statutory Auditor

London

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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PEMBROKE COLLEGE Statement of Accounting Policies Year ended 31 July 2020

1. Scope of the financial statements

The financial statements present the Consolidated Statement of Financial Activities (SOFA), the Consolidated and College Balance Sheets and the Consolidated Cash Flow Statement of Cash Flows comprising the consolidation of the College and with its wholly owned subsidiaries Pembroke College Enterprises Limited. The subsidiaries have been consolidated from the date of their formation being the date from which the College has exercised control through voting rights in the subsidiaries and Pembroke College Conferences and Events. No separate SOFA has been presented for the College alone as permitted by the Charity Commission on a concessionary basis for the filing of consolidated financial statements. A summary of the results and financial position of the charity and each of its material subsidiaries for the reporting year are in note 14.

2. Basis of accounting

The College’s individual and consolidated financial statements have been prepared in accordance with United Kingdom Accounting Standards, in particular ‘FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (FRS 102).

The College is a public benefit entity for the purposes of FRS 102 and a registered charity. The College has therefore also prepared its individual and consolidated financial statements in accordance with ‘The Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with FRS 102’ (The Charities SORP (FRS 102)).

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the previous Statement of Recommended Practice: Accounting and Reporting by Charities which was effective from 1 April 2005 but which has since been withdrawn.

The Governing Body has assessed the College’s ability to continue as a going concern. The Governing Body has considered several factors when forming its conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements, including a review of updated forecasts and cash flows to 31[st] July 2022, a consideration of key risks – including Covid-19 – that could impact on the College and the latest available management information. Having regard to the above, the Governing Body is satisfied that there are no material uncertainties around the decision to adopt the going concern basis of accounting in preparing these financial statements.

The financial statements are prepared on the historical cost basis, except for the measurement of investments and certain financial assets and liabilities at fair value with movements in value reported within the Statement of Financial Activities (SOFA). The principal accounting policies adopted are set out below and have been applied consistently throughout the year.

3. Accounting judgements and estimation uncertainty

In preparing financial statements, it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the Governing Body to have most significant effect on amounts recognised in the financial statements.

The Governing Body, in applying the accounting policies, have included an estimate for the College’s share of the USS and OSPS pension scheme liabilities in relation to funding past service deficits – this involves a number of estimates as disclosed in note 24.

The College includes an estimate of the useful economic life of its buildings. This is re-assessed annually. Leases on equipment are classified as either operating or finance leases which require an evaluation of the terms and conditions of each lease to determine whether the College retains or acquires the significant risks and rewards of ownership of the leased assets and as a result recognises an asset and a liability for future payments relating to the capital element of the lease in the balance sheet.

17

PEMBROKE COLLEGE Statement of Accounting Policies Year ended 31 July 2020

The College carries investment property at fair value in the balance sheet, with changes in fair value being recognised in the income and expenditure section of the SOFA. Independent valuations are obtained to determine fair value at the balance sheet date – this involves a number of estimates.

4. Income recognition

All income is recognised once the College has entitlement to the income, the economic benefit is probable and the amount can be reliably measured.

a. Income from fees, the Office for Students (formerly known as HEFCE) support and other charges for services

Fees receivable, less any scholarships, bursaries or other allowances granted from the College unrestricted funds, the Office for Students support and charges for services and use of the premises are recognised in the period in which the related service is provided.

b. Income from donations, grants and legacies

Donations and grants that do not impose specific future performance-related or other specific conditions are recognised on the date on which the charity has entitlement to the resource, the amount can be reliably measured and the economic benefit to the College of the donation or grant is probable. Donations and grants subject to performance-related conditions are recognised as and when those conditions are met. Donations and grants subject to other specific conditions are recognised as those conditions are met or their fulfilment is wholly within the control of the College and it is probable that the specified conditions will be met.

Legacies are recognised following grant of probate and once the College has received sufficient information from the executor(s) of the deceased’s estate to be satisfied that the gift can be reliably measured and that the economic benefit to the College is probable.

Donations, grants and legacies accruing for the general purposes of the College are credited to unrestricted funds.

Donations, grants and legacies which are subject to conditions as to their use imposed by the donor or set by the terms of an appeal are credited to the relevant restricted fund or, where the donation, grant or legacy is required to be held as capital, to the endowment funds. Where donations are received in kind (as distinct from cash or other monetary assets), they are measured at the fair value of those assets at the date of the gift.

c. Investment income

Interest on bank balances is accounted for on an accrual basis with interest recognised in the period to which the interest relates.

Income from fixed interest debt securities is recognised using the effective interest rate method.

Dividend income and similar distributions are recognised on the date the share interest becomes exdividend or when the right to the dividend can be established.

Income from investment properties is recognised in the period to which the rental income relates.

d. Furlough Income

Government grants are recognised on the accruals basis, when there is reasonable assurance that the College will comply with the conditions attaching to the grant and the grant will be received. The grant in connection to the Job Retention Scheme, has been recognised in the period to which the underlying furloughed staff costs relate.

5. Expenditure

Expenditure is accounted for on an accruals basis. A liability and related expenditure is recognised when a legal or constructive obligation commits the College to expenditure that will probably require settlement, the amount of which can be reliably measured or estimated.

18

PEMBROKE COLLEGE Statement of Accounting Policies Year ended 31 July 2020

Grants awarded that are not performance-related are charged as an expense as soon as a legal or constructive obligation for their payment arises. Grants subject to performance-related conditions are expensed as the specified conditions of the grant are met.

All expenditure including support costs and governance costs are allocated or apportioned to the applicable expenditure categories in the Statement of Financial Activities (the SOFA).

Support costs which includes governance costs (costs of complying with constitutional and statutory requirements) and other indirect expenditure are apportioned to expenditure categories in the SOFA based on the estimated amount attributable to that activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate. Irrecoverable VAT is included with the item of expenditure to which it relates.

Grants awarded are expensed as soon as they become legal or operational commitments.

Intra-group sales and charges between the College and its subsidiaries are excluded from trading income and expenditure in the consolidated financial statements.

6. Leases

Leases of assets that transfer substantially all the risks and rewards of ownership are classified as finance leases. The costs of the assets held under finance leases are included within fixed assets and depreciation is charged over the shorter of the lease term and the assets’ useful lives. Assets are assessed for impairment at each reporting date. The corresponding capital obligations under these leases are shown as liabilities and recognised at the lower of the fair value of the leased assets and the present value of the minimum lease payments. Lease payments are apportioned between capital repayment and finance charges in the SOFA so as to achieve a constant rate of interest on the remaining balance of the liability.

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Rentals payable under operating leases are charged in the SOFA on a straight line basis over the relevant lease terms. Any lease incentives are recognised over the lease term on a straight line basis.

7. Tangible fixed assets

Land is stated at cost. Buildings and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.

Expenditure on the acquisition or enhancement of land and on the acquisition, construction and enhancement of buildings which is directly attributable to bringing the asset to its working condition for its intended use and amounting to more than £30,000 together with expenditure on equipment costing more than £30,000 is capitalised.

Where a part of a building or equipment is replaced and the costs capitalised, the carrying value of those parts replaced is derecognised and expensed in the SOFA.

Other expenditure on equipment incurred in the normal day-to-day running of the College and its subsidiaries is charged to the SOFA as incurred.

8. Depreciation

Depreciation is provided to write off the cost of all tangible fixed assets, less their estimated residual value, in equal annual instalments over their expected useful economic lives as follows:

Freehold properties, including major extensions 50 years Building improvements 10 - 30 years Plant and machinery 15 years Equipment 5 - 15 years

Freehold land is not depreciated. The cost of maintenance is charged in the SOFA in the period in which it is incurred.

At the end of each reporting period, the residual values and useful lives of assets are reviewed and adjusted if necessary. In addition, if events or change in circumstances indicate that the carrying value may not be recoverable then the carrying values of tangible fixed assets are reviewed for impairment.

19

PEMBROKE COLLEGE Statement of Accounting Policies Year ended 31 July 2020

9. Heritage Assets

The College has no assets which it considers should be classified as Heritage Assets.

10. Investments

Investment properties are initially recognised at their cost and subsequently measured at their fair value (market value) at each reporting date. Purchases and sales of investment properties are recognised on exchange of contracts.

Listed investments are initially measured at their cost and subsequently measured at their fair value at each reporting date. Fair value is based on their quoted price at the balance sheet date without deduction of the estimated future selling costs.

Investments such as hedge funds and private equity funds which have no readily identifiable market value are initially measured at their costs and subsequently measured at their fair value at each reporting date without deduction of the estimated future selling costs. Fair value is based on the most recent valuations available from their respective fund managers.

Changes in fair value and gains and losses arising on the disposal of investments are credited or charged to the income or expenditure section of the SOFA as ‘gains or losses on investments’ and are allocated to the fund holding or disposing of the relevant investment.

11. Other financial instruments

a. Cash and cash equivalents

Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less.

b. Debtors and creditors

Debtors and creditors receivable or payable within one year and Fellows’ Loans payable outwith one year of the reporting date are carried at their transaction price.

12. Stocks

Stocks are valued at the lower of cost and net realisable value, cost being the purchase price on a first in, first out basis.

13. Foreign currencies

The functional and presentation currency of the College and its subsidiaries is the pound sterling.

Transactions denominated in foreign currencies during the year are translated into pounds sterling using the spot exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into pounds sterling at the rates applying at the reporting date.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the exchange rates at the reporting date are recognised in the income and expenditure section of the SOFA.

14. Total return investment accounting

The College statutes authorise the College to adopt a ‘total return’ basis for the investment of its permanent endowment. The College can invest its permanent endowments without regard to the capital/income distinctions of standard trust law and with discretion to apply any part of the accumulated total return on the investment as income for spending each year. Until this power is exercised, the total return is accumulated as a component of the endowment known as the unapplied total return that can be either retained for investment or released to income at the discretion of the Governing Body.

15. Fund accounting

The total funds of the College and its subsidiaries are allocated to unrestricted, restricted or endowment funds based on the terms set by the donors or set by the terms of an appeal. Endowment funds are further sub-divided into permanent and expendable.

20

PEMBROKE COLLEGE Statement of Accounting Policies Year ended 31 July 2020

Unrestricted funds can be used in furtherance of the objects of the College at the discretion of the Governing Body. The Governing Body may decide that part of the unrestricted funds shall be used in future for a specific purpose and this will be accounted for by transfers to appropriate designated funds.

Restricted funds comprise gifts, legacies and grants where the donor has specified that the funds are to be used for particular purposes of the College. They consist of either gifts where the donor has specified that both the capital and any income arising must be used for the purposes given or the income on gifts where the donor has required that the capital be maintained and the income used for specific purposes.

Permanent endowment funds arise where donors specify that the funds should be retained as capital for the permanent benefit of the College. Any part of the total return arising from the capital that is allocated to income will be accounted for as unrestricted funds unless the donor has placed restrictions on the use of that income, in which case it will be accounted for as a restricted fund.

Expendable endowment funds are similar to permanent endowment in that they have been given, or the College has determined based on the circumstances that they have been given, for the long term benefit of the College. However, the Governing Body may at their discretion determine to spend all or part of the capital.

16. Pension costs

The College participates in Universities Superannuation Scheme and the University of Oxford Staff Pension Scheme. These schemes are hybrid pension schemes, providing defined benefits based on salaries as well as benefits based on contributions.

The assets of the schemes are each held in a separate trustee-administered fund. Because of the mutual nature of the schemes, the assets applicable to the defined benefit membership are not attributed to individual Colleges and scheme-wide contribution rates are set. The College is therefore exposed to actuarial risks associated with other Universities’ and Colleges’ employees and is unable to identify its share of the underlying assets and liabilities of the defined benefit scheme on a consistent and reasonable basis.

As required by Section 28 of FRS 102 “Employee benefits”, the College accounts for the schemes as if they were wholly defined contribution schemes and contributions to these schemes are recognised as a liability and an expense in the period in which the salaries to which the contributions relate are payable.

The College has entered into agreements for both schemes (the Recovery Plans) that determine how each employer within the schemes will fund the overall scheme deficits. A liability is recognised at each balance sheet date for the discounted value of the expected future contribution payments under these past service deficit funding agreements, with changes to these liabilities being recognised as an expense in the periods in which the changes occur.

21

Pembroke College

Consolidated Statement of Financial Activities For the year ended 31 July 2020

----- Start of picture text -----
Unrestricted Restricted Endowed 2020 2019
Funds Funds Funds Total Total
Notes £'000 £'000 £'000 £'000 £'000
INCOME AND ENDOWMENTS FROM:
Charitable activities:
Teaching, research and residential 1 5,695 1,129 - 6,824 7,509
Other Trading Income 3 971 - - 971 2,169
Donations and legacies 2 441 2,195 342 2,978 2,755
Investments
Investment income 4 602 157 2,290 3,049 2,353
Total return allocated to income 15 949 1,356 (2,305) - -
Other income 5 345 - - 345 -
Total income 9,003 4,837 327 14,167 14,786
EXPENDITURE ON:
Charitable activities:
Teaching, research and residential 7,993 2,830 - 10,823 14,672
Generating funds:
Fundraising 537 - - 537 588
Trading expenditure 831 - - 831 1,301
Investment management costs 102 27 397 526 376
Total Expenditure 6 9,463 2,857 397 12,717 16,937
Net Income/(Expenditure) before gains (460) 1,980 (70) 1,450 (2,151)
Net gains/(losses) on investments 12, 13 (674) - (4,135) (4,809) 6,473
Net Income/(Expenditure) (1,134) 1,980 (4,205) (3,359) 4,322
Transfers between funds 20 23 110 (133) - -
Net movement in funds for the year (1,111) 2,090 (4,338) (3,359) 4,322
Fund balances brought forward 20 22,060 5,185 63,208 90,453 86,131
Funds carried forward 20 20,949 7,275 58,870 87,094 90,453
----- End of picture text -----

Prior year comparative SOFA Is shown in note 34

22

Pembroke College Consolidated and College Balance Sheets As at 31 July 2020

----- Start of picture text -----
2020 2019 2020 2019
Group Group College College
Notes £'000 £'000 £'000 £'000
FIXED ASSETS
Tangible assets 10 33,679 32,957 33,855 33,133
Property investments 12 3,508 3,596 3,508 3,596
Other Investments 13 75,585 92,969 75,585 92,969
Total Fixed Assets 112,772 129,522 112,948 129,698
CURRENT ASSETS
Stocks 224 222 223 222
Debtors 16 2,096 1,734 2,234 2,958
Investments 12,000 - 12,000 -
Cash at bank and in hand 4,480 3,745 3,888 2,137
Total Current Assets 18,800 5,701 18,345 5,317
LIABILITIES
Creditors: Amounts falling due within one year 17 2,163 1,680 1,710 1,298
NET CURRENT ASSETS 16,637 4,021 16,635 4,019
TOTAL ASSETS LESS CURRENT LIABILITIES 129,409 133,543 129,583 133,717
CREDITORS: falling due after more than one year 18 40,047 40,107 40,047 40,107
NET ASSETS BEFORE PENSION ASSET OR LIABILITY 89,362 93,436 89,536 93,610
Defined benefit pension scheme liability 24 2,268 2,983 2,268 2,983
TOTAL NET ASSETS 87,094 90,453 87,268 90,627
FUNDS OF THE COLLEGE
Endowment funds 58,870 63,208 58,870 63,208
Restricted funds 7,275 5,185 7,275 5,185
Unrestricted funds
Designated funds 1,504 1,463 1,504 1,463
General funds 21,713 23,580 21,887 23,754
Pension reserve 24 (2,268) (2,983) (2,268) (2,983)
87,094 90,453 87,268 90,627
----- End of picture text -----

The financial statements were approved and authorised for issue by the Governing Body of Pembroke College on 2 December 2020.

Master: Sir E. Ryder

Trustee: Professor O. Darbishire

23

Pembroke College Consolidated Statement of Cash Flows For the year ended 31 July 2020

----- Start of picture text -----
2020 2019
Notes £'000 £'000
Net cash provided used in operating activities 27 (1,416) (3,066)
Cash flows from investing activities
Dividends, interest and rents from investments 3,049 2,353
Purchase of property, plant and equipment (1,903) (2,619)
Proceeds from sale of investments 13,000 478
Purchase of investments (337) (25,749)
Net (additions to) current asset investments (12,000) 1,502
Net cash used in investing activities 1,809 (24,035)
Cash flows from financing activities
Repayments of borrowing - (12,991)
Cash inflows from new borrowing - 40,000
Receipt of endowment 342 1,002
Net cash provided used in financing activities 342 28,011
Change in cash and cash equivalents in the reporting period 735 910
Cash and cash equivalents at the beginning of the
reporting period 3,745 2,835
Cash and cash equivalents at the end of the reporting
period 28 4,480 3,745
----- End of picture text -----

24

Pembroke College Notes to the financial statements For the year ended 31 July 2020

1
INCOME FROM CHARITABLE ACTIVITIES
Teaching, Research and Residential
Unrestricted funds
Tuition fees - UK and EU students
Tuition fees - Overseas students
Other fees
Other Office for Students support
Other academic income
College residential income
Restricted funds
Other academic income
Total Teaching, Research and Residential
Total income from charitable activities		 2020
£'000
1,559
1,042
609
90
303
2,092
5,695
1,129
1,129
6,824
6,824		 2019
£'000
1,676
958
546
83
273
2,889
6,425
1,084
1,084
7,509
7,509

The above analysis includes £2672k received from Oxford University from publicly accountable funds under the CFF Scheme (2019: £2,683k).

Under the terms of the undergraduate student support package offered by Oxford University to students from lower income households, the college share of the fees waived amounted to £nil (2019: £1k). These are not included in the fee income reported above.

2
DONATIONS AND LEGACIES
Donations and Legacies
Unrestricted funds
Restricted funds
Endowed funds
3
INCOME FROM OTHER TRADING ACTIVITIES
Subsidiary company trading income
Other trading income
4
INVESTMENT INCOME
Unrestricted funds
Commercial rent
Equity dividends
Bank interest
Other interest
Restricted funds
Equity dividends
Endowed funds
Commercial rent
Other property income
Equity dividends
Total Investment income
5
OTHER INCOME
Coronavirus Job Retention Scheme grant income		 2020
£'000
441
2,195
342
2,978
2020
£'000
961
10
971
2020
£'000
93
488
20
1
602
157
157
243
-
2,047
2,290
3,049
2020
£'000
345
345		 2019
£'000
479
1,274
1,002
2,755
2019
£'000
2,166
3
2,169
2019
£'000
43
676
36
-
755
94
94
246
0
1,258
1,504
2,353
2019
£'000
0
-

25

Pembroke College Notes to the financial statements For the year ended 31 July 2020

6
ANALYSIS OF EXPENDITURE
Charitable expenditure
Direct staff costs allocated to:
Teaching, research and residential
Other direct costs allocated to:
Teaching, research and residential
Support and governance costs allocated to:
Teaching, research and residential
Total charitable expenditure
Expenditure on raising funds
Direct staff costs allocated to:
Fundraising
Trading expenditure
Other direct costs allocated to:
Fundraising
Trading expenditure
Investment management costs
Support and governance costs allocated to:
Fundraising
Trading expenditure
Investment management costs
Total expenditure on raising funds
Total expenditure		 2020
£'000
5,199
3,212
2,412
10,823
355
242
122
189
4
60
400
522
1,894
12,717		 2019
£'000
4,783
3,741
6,148
14,672
332
373
199
348
3
57
580
373
2,265
16,937

The College is liable to be assessed for Contribution under the provisions of Statute XV of the University of Oxford. The Contribution Fund is used to make grants and loans to colleges on the basis of need. Contributions are calculated annually in accordance with regulations made by the Council of the University of Oxford. No College contribution was payable in the financial year (2019 - £7k)

26

Pembroke College Notes to the financial statements For the year ended 31 July 2020

7 ANALYSIS OF SUPPORT AND GOVERNANCE COSTS

Financial administration
Domestic administration
Human resources
IT
Depreciation
Bank interest payable
Other finance charges
Investment management costs
Governance costs
Financial administration
Domestic administration
Human resources
IT
Depreciation
Bank interest payable
Other finance charges
Investment management costs
Governance costs		 Generating
Funds
£'000
234
70
-
19
135
-
12
510
2
982
Generating
Funds
£'000
326
97
-
25
188
-
(24)
396
2
1,010		 Teaching
and
Research
£'000
408
185
34
259
1,046
1,164
(715)
-
31
2,412
Teaching
and
Research
£'000
345
142
39
240
872
863
3,618
-
29
6,148		 2020
Total
£'000
642
255
34
278
1,181
1,164
(703)
510
33
3,394
2019
Total
£'000
671
239
39
265
1,060
863
3,594
396
31
7,158

Financial and domestic administration, IT, human resources and governance costs are attributed according to the estimated staff time spent on each activity. Depreciation costs and profit or loss on disposal of fixed assets are attributed according to the use made of the underlying assets. Interest and other finance charges are attributed according to the purpose of the related financing.

Governance costs comprise:
Auditor's remuneration - audit services
Auditor's remuneration - tax advisory services
Auditor's remuneration - other services		 2020
£'000
21
12
-
33		 2019
£'000
21
10
-
31

No amount has been included in governance costs for the direct employment costs or reimbursed expenses of the College Fellows on the basis that these payments relate to the Fellows involvement in the College's charitable activities. Details of the remuneration of the Fellows and their reimbursed expenses are included as a separate note within these financial statements.

GRANTS AND AWARDS
2020
£'000
Unrestricted funds
Grants to individuals:
Scholarships, prizes and grants
94
Bursaries and hardship awards
86
Total unrestricted
180
Restricted funds
Grants to individuals:
Scholarships, prizes and grants
429
Bursaries and hardship awards
1
Total restricted
430
Total grants and awards
610
During the year the College funded research awards and bursaries to students from its restricted and unrestricted fund as follows:		 2019
£'000
200
87
287
416
1
417
704

The figure included above represents the cost to the College of the Oxford Bursary scheme. Students of this college received £179k (2019: £145k).Some of those students also received fee waivers amounting to £36k (2019: £48k).

The above costs are included within the charitable expenditure on Teaching and Research. No grants to other institutions were paid.

27

Pembroke College Notes to the financial statements For the year ended 31 July 2020

9
STAFF COSTS
The aggregate staff costs for the year were as follows.
Salaries and wages
Social security costs
Pension costs:
Defined benefit schemes
Other benefits
The average number of employees of the College, excluding Trustees,
on a full time equivalent basis was as follows.
Tuition and research
College residential
Fundraising
Support
Total
The average number of employees of the College, excluding Trustees,
on an actual basis was as follows.
Tuition and research
College residential
Fundraising
Support
Total
The average number of employed College Trustees during the year was as follows.
University Lecturers
CUF Lecturers
Other teaching and research
Other
Total		 2020
£'000
5,116
459
170
139
5,884
37
67
6
21
131
62
75
7
22
166
25
5
4
7
41		 2019
£'000
4,950
434
1,814
150
7,348
38
66
6
20
130
62
76
7
22
167
25
4
4
7
40

Redundancy payments are accounted for in the period in which the employee was informed of the decision. There was one redundancy payment in year of £1.6k (None in 2019).

The following information relates to the employees of the College excluding the College Trustees. Details of the remuneration and reimbursed expenses of the College Trustees is included as a separate note in these financial statements.

The number of employees (excluding the College Trustees) during the year whose gross pay and benefits (excluding employer NI and pension contributions) greater than £60K was nil.

28

Pembroke College Notes to the financial statements For the year ended 31 July 2020

10 TANGIBLE FIXED ASSETS

Group
Assets
Under
Construction
£'000
Cost
At start of year
969
Additions
893
Transfers
(40)
At end of year
1,822
Depreciation and impairment
At start of year
-
Depreciation charge for the year
-
At end of year
-
Net book value
At end of year
1,822
At start of year
969
College
Assets
Under
Construction
£'000
Cost
At start of year
969
Additions
893
Transfers
(40)
At end of year
1,822
Depreciation and impairment
At start of year
-
Charge for the year
-
At end of year
-
Net book value
At end of year
1,822
At start of year
969		 Freehold
land and
buildings
£'000
41,019
977
40
42,036
10,552
929
11,481
30,555
30,467
Freehold
land and
buildings
£'000
41,182
977
40
42,199
10,552
929
11,481
30,718
30,630		 Plant and
machinery
£'000
2,282
-
-
2,282
1,067
171
1,238
1,044
1,215
Plant and
machinery
£'000
2,282
-
-
2,282
1,067
171
1,238
1,044
1,215		 Fixtures,
fittings and
equipment
£'000
2,139
33
-
2,172
1,833
81
1,914
258
306
Fixtures,
fittings and
equipment
£'000
2,151
33
-
2,184
1,832
81
1,913
271
319		 Total
£'000
46,409
1,903
0
48,312
13,452
1,181
14,633
33,679
32,957
Total
£'000
46,584
1,903
0
48,487
13,451
1,181
14,632
33,855
33,133

The College has substantial long-held historic assets all of which are used in the course of the College’s teaching and research activities. These comprise listed buildings on the College site, together with their contents comprising works of art, ancient books and manuscripts and other treasured artefacts. Because of their age and, in many cases, unique nature, reliable historical cost information is not available for these assets and could not be obtained except at disproportionate expense. However, in the opinion of the Trustees the depreciated historical cost of these assets is now immaterial.

11 HERITAGE ASSETS

College and Group

The College does not hold any heritage assets at 31 July 2020 (2019 - Nil)

29

Pembroke College Notes to the financial statements For the year ended 31 July 2020

12 PROPERTY INVESTMENTS

Group
Valuation at start of year
Disposals
Revaluation gains/(losses) in the year
Valuation at end of year
College
Valuation at start of year
Disposals
Revaluation gains/(losses) in the year
Valuation at end of year		 Commercial
£'000
3,595
-
(87)
3,508
Commercial
£'000
3,595
-
(87)
3,508		 2020
Total
£'000
3,595
-
(87)
3,508
2020
Total
£'000
3,595
-
(87)
3,508		 2019
Total
£'000
4,519
(1,107)
184
3,596
2019
Total
£'000
4,519
(1,107)
184
3,596

A formal valuation of the commercial and other properties was prepared by Craig Middleton MRICS of Cluttons as at 28 January 2020.

13 OTHER INVESTMENTS

All investments are held at fair value.

Group investments
Valuation at start of year
New money invested
Amounts withdrawn
Reinvested income
Investment management fees
Increase/ (decrease) in value of investments
Group investments at end of year
Investment in subsidiaries
College investments at end of year
Group investments comprise:
Equity investments
Global multi-asset funds
Fixed term deposits and cash
Total group investments		 Held outside
the UK
£'000
-
8,463
-
8,463		 Held in
the UK
£'000
423
63,342
3,357
67,122		 2020
Total
£'000
423
71,805
3,357
75,585		 Held outside
the UK
£'000
-
17,582
-
17,582		 2020
£'000
92,969
337
(13,266)
266
-
(4,722)
75,585
-
75,585
Held in
the UK
£'000
463
70,077
4,847
75,387		 2019
£'000
60,302
25,749
(661)
1,290
-
6,289
92,969
-
92,969
2019
Total
£'000
463
87,659
4,847
92,969

30

Pembroke College Notes to the financial statements For the year ended 31 July 2020

14 PARENT AND SUBSIDIARY UNDERTAKINGS

The College holds 100% of the issued share capital in Pembroke College Conference and Events (PCCE), a company providing conference and other event services on the College premises, and 100% of the issued share capital in Pembroke College Enterprises Limited (PCEL), a company providing design and build construction services to the College. PCCE and PCEL both have their registered office at New Kings Court, Tollgate, Chandler's Ford, Eastleigh, Hampshire SO53 3LG. Their company registration numbers are PCCE - 7665202 and PCEL - 5174033.

The results and their assets and liabilities of the parent and subsidiaries at the year end were as follows.

Income
Expenditure
Donation to College under gift aid
Result for the year
Total assets
Total liabilities
Net funds at the end of year		 £'000
9,358
(12,717)
-
(3,359)
131,293
(44,025)
87,268
Parent
College		 £'000
836
(826)
(10)
-
229
(229)
-
Pembroke
College
Enterprises
Limited		 £'000
947
(831)
(116)
-
517
(517)
-
Pembroke
College
Conferences
and Events

During the year an amount of £831k (2019: £1,306k) was paid by the College to PCCE in respect of costs incurred by the College on behalf of the subsidiary including staff costs, catering costs and a share of other running costs and overheads. At the year end, a balance of £86k (2019: £1,921k) was owed by PCCE to Pembroke College. At the year end, a balance of £205k (2019: £34k) was owed by PCEL to the College.

Prior year comparative of this note is shown in note 34.

15 STATEMENT OF INVESTMENT TOTAL RETURN

The Trustees have adopted a duly authorised policy of total return accounting for the College investment returns with effect from 1 August 2010. The investment return to be applied as income is calculated as 3.5% (2019: 3.5%) of the average of the year-end values of the relevant investments in each of the last 3 years. The preserved (frozen) value of the invested endowment capital represents its open market value at 31 July 2002 together with all subsequent endowments valued at date of gift.

At the beginning of the year:
Gift component of the permanent endowment
Unapplied total return
Expendable endowment
Total Endowments
Movements in the reporting period:
Gift of endowment funds
Investment return: total investment income
Investment return: realised and unrealised gains and losses
Less: Investment management costs
Other transfers
Total
Expendable endowments transferred to income
Net movements in reporting period
At end of the reporting period:
Gift component of the permanent endowment
Unapplied total return
Expendable endowment
Total Endowments		 Trust for
Investment
£'000
23,489
-
-
23,489
92
-
-
-
-
92
-
-
92
23,581
-
-
23,581
P		 Unapplied
Total
Return
£'000
-
21,121
-
21,121
-
1,616
(2,918)
(280)
(1)
(1,583)
(1,626)
(1,626)
(3,209)
-
17,912
-
17,912
ermanent Endowm		 Total
£'000
23,489
21,121
-
44,610
92
1,616
(2,918)
(280)
(1)
(1,491)
(1,626)
(1,626)
(3,117)
23,581
17,912
-
41,493
ent		 Expendable
Endowment
£'000
-
-
18,598
18,598
250
674
(1,217)
(117)
(133)
(543)
(678)
(678)
(1,221)
-
-
17,377
17,377		 Total
Endowments
£'000
23,489
21,121
18,598
63,208
342
2,290
(4,135)
(397)
(134)
(2,034)
(2,305)
(2,305)
(4,338)
23,581
17,912
17,377
58,870

Prior year comparative of this note is shown in note 34.

31

Pembroke College Notes to the financial statements For the year ended 31 July 2020

16
DEBTORS
Amounts falling due within one year:
Trade debtors
Amounts owed by College members
Amounts owed by Group undertakings
Loans repayable within one year
Prepayments and accrued income
Amounts falling due after more than one year:
Loans
17
CREDITORS: falling due within one year
Trade creditors
Taxation and social security
Accruals and deferred income
Other creditors
18
CREDITORS: falling due after more than one year
Bank loans
Other creditors		 2020
Group
£'000
289
36
(2)
8
1,309
456
2,096
2020
Group
£'000
430
140
1,471
122
2,163
2020
Group
£'000
40,000
47
40,047		 2019
Group
£'000
475
86
-
18
839
316
1,734
2019
Group
£'000
204
160
1,238
78
1,680
2019
Group
£'000
40,000
107
40,107		 2020
College
£'000
321
36
290
8
1,123
456
2,234
2020
College
£'000
427
140
1,021
122
1,710
2020
College
£'000
40,000
47
40,047		 2019
College
£'000
270
86
1,955
18
313
316
2,958
2019
College
£'000
193
160
868
77
1,298
2019
College
£'000
40,000
107
40,107

A placement of a private bond totalling £40m took place in January 2019. The bond has a fixed term of 45 years with a fixed coupon.

19 PROVISIONS FOR LIABILITIES AND CHARGES

The College has no provisions at 31 July 2020 (2019 - None)

32

Pembroke College Notes to the financial statements For the year ended 31 July 2020

20
ANALYSIS OF MOVEMENTS ON FUNDS
At 31st July 2020
Endowment Funds - Permanent
General College Capital
Damon Wells Trust
Stanley Ho Trust
TEPCo Trust
Lee Trust
Tanaka Fund in Numerical Mathematics
Damon Wells Chaplaincy Trust
Shimizu Trust
Nuffield Fund
Aisbitt Fund
BTP Fund
Oxford Stanion Fund
Bandar Trust Fund
Saleh Trust Fund
Rokos Physics
Theology Fellowship
Rokos Economics
Blackstone-Heuston Trust
Tanaka Fund in Biochemistry
Leung Trust
Burt 1923 Scholarship Fund
Rhodes Pelczynski Fund
Eekelaar Law Fellowship Fund
Abraham Trust
Jose Gregorio Hernandez Award
Abraham O'Brien Trust
Other funds < £500k relating to:
Buildings
Bursaries
Fellowships
General purposes
Lecture
Library
Pensions
Scholarships, prizes & grants
Endowment Funds - Expendable
Expendable Capital Fund
Total Endowment Funds - College
Endowment funds held by subsidiaries
Total Endowment Funds - Group
Restricted Funds
Library
Funds < £500k relating to:
Buildings
Fellowships
Scholarships, prizes & grants
Research centres
Other funds
Total Restricted Funds - College
Restricted funds held by subsidiaries
Total Restricted Funds - Group		 At 1 August
2019
£'000
10,317
3,050
1,633
1,481
1,431
1,415
1,254
1,101
1,078
1,036
989
907
886
882
860
793
790
789
767
743
720
713
701
638
596
518
324
698
3,056
2,149
230
13
451
1,601
18,598
63,208
-
63,208
9
581
2,026
821
477
1,271
5,185
-
5,185		 Incoming
resources
£'000
374
111
60
55
52
51
45
40
39
38
36
33
32
32
31
29
29
28
104
27
26
26
31
23
22
19
15
27
111
78
8
1
17
58
924
2,632
-
2,632
1,294
26
554
318
1,057
232
3,481
-
3,481		 Resources
expended
£'000
(65)
(19)
(10)
(9)
(9)
(9)
(8)
(7)
(7)
(7)
(6)
(6)
(6)
(6)
(5)
(5)
(5)
(5)
(5)
(5)
(5)
(4)
(4)
(4)
(4)
(3)
(2)
(4)
(19)
(13)
(1)
(0)
(3)
(10)
(117)
(397)
-
(397)
(1)
(10)
(1,161)
(383)
(1,031)
(271)
(2,857)
-
(2,857)		 Transfers
£'000
(376)
(111)
(60)
(54)
(52)
(52)
(46)
(40)
(39)
(38)
(36)
(33)
(32)
(32)
(31)
(29)
(29)
(29)
(28)
(27)
(26)
(26)
(26)
(23)
(22)
(19)
(12)
(25)
(111)
(79)
(8)
(1)
(17)
(58)
(811)
(2,438)
-
(2,438)
-
44
860
140
-
422
1,466
-
1,466*		 Gains/
(losses)
£'000
(674)
(200)
(107)
(97)
(94)
(92)
(82)
(72)
(70)
(68)
(65)
(59)
(57)
(58)
(56)
(52)
(52)
(51)
(50)
(49)
(46)
(47)
(46)
(42)
(39)
(34)
(21)
(46)
(200)
(141)
(15)
(1)
(30)
(105)
(1,217)
(4,135)
-
(4,135)
-
-
-
-
-
-
-
-
-		 At 31 July
2020
£'000
9,576
2,831
1,516
1,376
1,328
1,313
1,163
1,022
1,001
961
918
842
823
818
799
736
733
732
788
689
669
662
656
592
553
481
304
650
2,837
1,994
214
12
418
1,486
17,377
58,870
-
58,870
1,302
641
2,279
896
503
1,654
7,275
-
7,275

33

Pembroke College Notes to the financial statements

For the year ended 31 July 2020

Unrestricted Funds
Designated funds:
Theology Fellowship
Physics Fellowship
Pensions
Scholarships, prizes & grants
Other
Total designated funds
General funds
Revaluation reserve
Pension reserve
Total Unrestricted Funds - College
Unrestricted funds held by subsidiaries
Total Unrestricted Funds - Group
Total Funds		 496
495
46
126
300
1,463
23,756
-
(2,983)
22,236
(174)
22,060
90,453		 18
18
1
5
11
53
8,001
-
-
8,054
-
8,054
14,167		 (3)
(3)
(0)
(3)
(2)
(11)
(10,167)
-
715
(9,463)
-
(9,463)
(12,717)		 -
-
-
-
-
-
972
-
-
972
-
972
-		 -
-
-
-
-
-
(674)
-
-
(674)
-
(674)
(4,809)		 511
510
47
128
308
1,504
21,887
-
(2,268)
21,123
(174)
20,949
87,094

*Transfers included £949k and £1,356k released to unrestricted and restricted funds respectively in accordance with the College's total return policy.

Prior year comparative of this note is shown in note 34

21 FUNDS OF THE COLLEGE DETAILS

The following is a summary of the origins and purposes of each of the Funds

Endowment Funds - Permanent:
General College Capital General Permanent Endowment
Damon Wells Trust Supports a Fellowship in History
Stanley Ho Trust Supports a Fellowship in Chinese History
TEPCo Trust Supports a Fellowship in Japanese
Lee Trust Supports a Fellowship in Engineering
Tanaka Fund in Numerical Mathematics Supports a Fellowship in Numerical Mathematics
Damon Wells Chaplaincy Trust Supports the Chaplaincy
Shimizu Trust Supports the teaching of science
Nuffield Fund Supports general expenditure
Aisbitt Fund Supports a Fellowship in English Literature
BTP Fund Supports a Fellowships in Chemistry
Oxford Stanion Fund Supports a Graduate Scholarship in Biochemisty
Bandar Trust Fund Supports the maintenance of College buildings
Saleh Trust Fund Supports a Fellowship in Arabic
Rokos Physics Fund Supports a Fellowship in Physics
Theology Fellowship Supports a Fellowship in Theology
Rokos Economics Fund Supports a Fellowship in Economics
Blackstone-Heuston Trust Supports a Fellowship in Law
Tanaka Fund in Biochemistry Supports a Fellowship in Biochemistry
Leung Trust Supports a Fellowship in Law
Burt 1923 Scholarship Fund Supports hardship and general expenditure
Rhodes Pelczynski Fund Supports a Fellowship in Politics
Eekelaar Law Fellowship Fund Supports a Fellowship in Law
Abraham Trust Supports a Fellowship in Zoology
Jose Gregorio Hernandez Award Advance the education of graduates of Venezuelan nationality
Abraham O'Brien Trust Supports a Fellowship in Medicine
Endowment Funds - Expendable:
General College Capital General Expendable Endowment

The General Unrestricted Funds represent accumulated income from the College's activities and other sources that are available for the general purposes of the College.

34

Pembroke College Notes to the financial statements For the year ended 31 July 2020

Tangible fixed assets
Property investments
Other investments
Net current assets and other long term liabilities
Long term loan finance		 Unrestricted
Funds
£'000
33,679
-
12,948
14,323
(40,000)
20,949		 Restricted
Funds
£'000
-
-
7,275
(0)
-
7,275		 Endowment
Funds
£'000
-
3,508
55,362
-
-
58,870		 2020
Total
£'000
33,679
3,508
75,585
14,322
(40,000)
87,094

Prior year comparative of this note is shown in note 34.

23 TRUSTEES' REMUNERATION

The Fellows who are the Trustees of the College for the purposes of charity law receive no remuneration for acting as charity trustees but are paid by either or both of the University and the College for the academic services they provide to the College.

Trustees of the College fall into the following categories: Head of House Professorial Fellow Official Fellow Fellow by Special Election Advisory Fellow

No trustee receives any remuneration for acting as a trustee. However, those trustees who are also employees of the College receive salaries for their work as employees. These salaries are paid on external academic and academic-related scales and often are joint arrangements with the University of Oxford.

All Official Fellows are eligible for a Housing Allowance, which is disclosed within the salary figures below.

The College has a Remuneration Committee which makes recommendations to Governing Body on pay and benefits which are outside of external scales. The composition of the Remuneration Committee is set out in pg 3-6 of the section, Governing Body, Officers and Advisers.

35

Pembroke College Notes to the financial statements For the year ended 31 July 2020

Remuneration paid to trustees

Range
£9,001-£10,000
£10,001-£11,000
£12,001-£13,000
£13,001-£14,000
£15,001-£16,000
£16,001-£17,000
£20,001-£21,000
£21,001-£22,000
£22,001-£23,000
£23,001-£24,000
£24,001-£25,000
£25,001-£26,000
£26,001-£27,000
£27,001-£28,000
£28,001-£29,000
£29,001-£30,000
£40,001-£41,000
£43,001-£44,000
£48,001-£49,000
£50,001-£51,000
£55,001-£56,000
£57,001-£58,000
£58,001-£59,000
£59,001-£60,000
£60,001-£61,000
£62,001-£63,000
£85,001-£86,000
£87,001-£88,000
£89,001-£90,000
£90,001-£91,000
£93,001-£94,000
£94,001-£95,000
£97,001-£98,000
£100,001-£101,000
£101,001-£102,000
£103,001-£104,000
£110,001-£111,000
£117,001-£118,000
Total		 1
-
-
1
-
1
-
-
-
-
8
7
5
3
1
1
-
1
-
2
-
-
1
2
1
-
1
1
1
-
-
1
-
1
1
1
-
42
Number of
Trustees/Fellows		 £
£
9,392
-
-
-
1
10,280
-
1
12,175
13,259
-
-
-
1
15,523
16,258
-
-
-
1
20,131
-
1
21,935
-
9
202,720
-
4
95,087
194,224
8
194,745
179,293
-
-
132,295
1
26,463
82,750
1
27,762
28,008
-
-
29,248
-
-
-
1
40,482
43,642
-
-
-
1
48,046
100,844
-
-
-
1
55,713
-
1
57,493
58,521
1
58,720
1
59,717
121,368
-
-
62,812
-
-
-
2
171,197
87,768
-
-
89,694
-
-
90,944
1
90,369
-
1
93,225
-
1
94,522
97,171
-
-
-
1
100,457
101,418
-
-
103,884
110,180
-
-
-
1
117,906
1,752,973
41
1,614,668
Gross remuneration, taxable benefits
and pension contributions
Number of
Trustees/Fellows
2019
Gross remuneration, taxable benefits
and pension contributions
2020

12 trustees are not employees of the College and do not receive remuneration. All trustees may eat at common table, as can all other employees who are entitled to meals while working.

Other transactions with trustees

Fellows also receive reimbursement of personal expenses necessarily incurred in connection with their services to the College as Trustees. During the year a total of £71 (2019 - £32) was reimbursed to one (2019 - two) of the Trustees. See also note 31 Related Party Transactions.

Key management remuneration

The total remuneration paid to key management was £566k (2019: £552k).

Key management are considered to be the College Officers as set out in the Report of the Governing Body.

36

Pembroke College Notes to the financial statements For the year ended 31 July 2020

24 PENSION SCHEMES

The College participates in the Universities Superannuation Scheme and the University of Oxford Staff Pension Scheme on behalf its fellows and staff.

As explained in the accounting policies, due to insufficient information being available to enable the College to use defined benefit accounting for these schemes, in accordance with the provisions of FRS 102 both schemes are accounted for as if they were defined contribution schemes.

Both schemes have put in place agreements for additional contributions to fund their past service deficits and the College has recognised a liability for the present value of the future contributions that it estimates will be payable as a result of these deficit funding agreements as explained below.

In the event of the withdrawal of any of the participating employers in USS or OSPS, the amount of any pension funding shortfall (which cannot be otherwise recovered) in respect of that employer will be spread across the remaining participating employers and reflected in the next actuarial valuation of the scheme.

Universities Superannuation Scheme

The USS comprises two parts, USS Retirement Income Builder which is a defined benefit arrangement and USS Investment Builder which is a defined contribution arrangement. However, as explained above, both parts are accounted for as if they were defined contribution arrangements.

The pension charge for the year in the Statement of Financial Activities includes £(213)k (2019 - £1,415k) in relation to the USS. This represents normal contributions of £426k (2019 - £365k) payable to the USS together with the change in the deficit funding liability between the opening and closing balance sheet dates of £(639)k (2019 - £1,049k).

Following the triennial actuarial valuation of the USS defined benefit liabilities carried out as at 31 March 2017, an additional valuation was prepared as at 31 March 2018 and published on 16 September 2019. This valuation showed a shortfall of £3.6bn in the USS with the scheme assets at £63.7bn being sufficient to cover 95% of its ‘technical provisions’ liabilities £67.3bn. Based on these valuations the actuary determined that the USS funding rates should increase as follows:

A new deficit recovery plan was also agreed following the 2018 valuation and the contributions above include deficit funding payments of 2% of salaries from 1 October 2019 to 30 September 2021.

A further increase in the contribution rate to 34.7% from 1 October 2021 (employer 23.7%, employee 11%), including deficit funding payments of 6% of salaries, was also agreed although this will be subject to review following the 2020 actuarial valuation which is currently in progress.

The College has used a financial modeller to estimate the expected future deficit funding contributions payable and the present value of this amount is recognised as a liability in the balance sheet. Changes in the estimated amount of this deficit funding liability each year are shown on the Statement of Financial Activities. For the year ended 31 July 2020 the College’s provision for the USS deficit funding liability was £939k (2019 – £1,579k).

An interim actuarial report as at 31 March 2019 commissioned by the USS trustees showed an increased shortfall of £5.4bn in the USS with the scheme assets being sufficient to cover 93% of its ‘technical provisions’ liabilities. However, this report recognises that these figures are not as accurate as those that would arise from a full actuarial valuation and this report has not impacted on the current contribution rates. The next full actuarial valuation for the USS is being prepared as at 31 March 2020 and it is expected that the initial recommendations on overall future contribution rates will be notified to the Joint Negotiating Committee in December 2020.

Further details on the Actuarial Valuations of the USS can be found on the USS website. [https://www.uss.co.uk/actuarial-valuation]

Oxford Staff Pension Scheme

The pension charge for the year includes £432k (2019 - £479k) in relation to the OSPS. This represents contributions of £508k (2019 - £467k) payable to the OSPS as adjusted by the change in the deficit funding liability between the opening and closing balance sheet dates of £(75)k (2019 - £12k).

The latest formal actuarial valuation of OSPS was carried out as at 31 March 2019 and was published in June 2020. This valuation showed the scheme assets as £735.3m, sufficient to cover 87% of its liabilities of £848.1m on a technical provisions basis with an overall shortfall of £112.8m.

Based on this valuation the trustee and University have agreed a recovery plan under which the employers will continue to pay contributions to the OSPS of 19% of pensionable salaries of both defined benefits members and defined contributions members who join on or after 1 October 2017. Part of the contributions for defined contribution members is paid to the defined benefit section to cover the deficit recovery plan, the provision of ill-health and death-in service benefits and the expenses of administering the defined contribution section. In addition, the employers will continue to reimburse the scheme in respect of Pension Protection Fund (PPF) and other levies collected by the Pensions Regulator. These contributions, together with an allowance for the Scheme's assets to return 2.5% per annum above gilt yields, are expected to eliminate the technical provision deficit by 31 January 2028.

A provision of £1,329k has been included in the financial statements as at 31 July 2020 (2019 - £1,404k) for the present value of the estimated future deficit funding element of the contributions payable under this recovery plan agreement. In determining the level of this provision it has been assumed that the College will continue to have a constant level of employee participation in this scheme and that the relevant earnings of these employees will increase in line with the actuary’s projected long-term salary rate increases.

A copy of the full actuarial valuation report and other further details on the scheme are available on the University of Oxford website. [https://finance.admin.ox.ac.uk/osps-documents]

37

Pembroke College Notes to the financial statements For the year ended 31 July 2020

25 TAXATION

The College is able to take advantage of the tax exemptions available to charities from taxation in respect of income and capital gains received to the extent that such income and gains are applied to exclusively charitable purposes. No liability to corporation tax arises in the College's subsidiary companies because the directors of these companies have indicated that they intend to make donations each year to the College equal to the taxable profits of the company under the Gift Aid scheme. Accordingly no provision for taxation has been included in the financial statements.

26 FINANCIAL INSTRUMENTS

The College does not hold any financial instruments as at 31 July 2020 (2019 - None)

27 RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH FLOW FROM OPERATIONS

NET CASH FLOW FROM OPERATIONS
Net income/(expenditure)
Elimination of non-operating cash flows:
Investment income
Losses/(Gains) in investments
Endowment donations
Depreciation
(Increase) in stock
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
(Decrease)/Increase in pension scheme liability
Net cash provided by (used in) operating activities		 2020
Group
£'000
(3,359)
(3,049)
4,809
(342)
1,181
(2)
(362)
423
(715)
(1,416)		 2019
Group
£'000
4,322
(2,353)
(6,473)
(1,002)
1,060
(10)
419
(91)
1,062
(3,066)

28 ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash at bank and in hand
Total cash and cash equivalents		 2020
£'000
4,480
4,480		 2019
£'000
3,745
3,745

29 FINANCIAL COMMITMENTS

The College does not have any annual commitments under non-cancellable operating leases (2019 - Nil)

30 CAPITAL COMMITMENTS

The College had contracted commitments at 31 July 2020 for future capital projects totalling £420k (2019 - £108k).

38

Pembroke College Notes to the financial statements For the year ended 31 July 2020

31 RELATED PARTY TRANSACTIONS

The College is part of the collegiate University of Oxford. Material interdependencies between the University and of the College arise as a consequence of this relationship. For reporting purposes, the University and the other Colleges are not treated as related parties as defined in FRS 102.

Members of the Governing Body, who are the trustees of the College and related parties as defined by FRS 102, receive remuneration and facilities as employees of the College. Details of these payments and reimbursed expenses as trustees are disclosed separately in these financial statements.

Loans to trustees are available under two schemes:

1) Loans up to £200,000 to assist with the purchase of a principal residence or significant extension and are interest free and repayable within 8 years of inception or when the trustee leaves the College, if earlier. These loans are made to assist recruitment and retention. The need for such a loan must be demonstrated to a committee comprising of the Bursar, the Director of Finance and a Fellow who is not remunerated by the College.

2) Loans of up to £10k are available to all Fellows and interest is charged at 5% p.a.. The loans are repayable when the trustee leaves the College.

Scheme 1
Scheme 2		 2020
No.
4
1
5		 2019
No.
3
1
4

Jeremy Bennett, who left on 31st July 2020, was a director of OUEM (Oxford University Endowment Management) in which the College and Collegiate University has significant investments. Oxford University is the sole shareholder of OUEM.

The Academic Director is a trustee of both the College and Pembroke College Oxford JCR Art Collection Fund. The College was reimbursed for invigilation payments of £1.3k made to students in year. There was nothing outstanding at year end.

32 CONTINGENT LIABILITIES

The College does not have any contingent liabilities at 31 July (2019 - Nil)

33 POST BALANCE SHEET EVENTS

Following the end of the year, the College issued a letter of intent to E.W. Beard Limited with a maximum value of £400,000 with regard to the development of new graduate student accommodation, in advance of entering into a formal contract for the works.

In September 2020, the Trustee of the USS Pension Scheme (USS) launched a consultation with Universities UK on key aspects of the scheme's 2020 valuation. The scope of this exercise covers a wide range of potential outcomes - reflecting issues still to be resolved on employer support as well as uncertainties for the higher education sector and financial markets in general - but, based on the proposals put forward, the Trustees have indicated that the fund's deficit at 31 March 2020 could range from between £9.8bn and £17.9bn. The review is ongoing and the valuation is expected to be concluded in June 2021. The impact on the College’s deficit is therefore unknown at the date of approval of these financial statements.

39

Pembroke College Notes to the financial statements For the year ended 31 July 2020

34 PRIOR YEAR COMPARATIVES

Consolidated Statement of Financial Activities For the year ended 31 July 2019

INCOME AND ENDOWMENTS FROM:
Charitable activities:
Teaching, research and residential
Other Trading Income
Donations and legacies
Investments
Investment income
Total return allocated to income
Total income
EXPENDITURE ON:
Charitable activities:
Teaching, research and residential
Generating funds:
Fundraising
Trading expenditure
Investment management costs
Total Expenditure
Net Income/(Expenditure) before gains
Net gains/(losses) on investments
Net Income/(Expenditure)
Transfers between funds
Net movement in funds for the year
Fund balances brought forward
Funds carried forward at 31 July		 Unrestricted
Funds
£'000
6,425
2,169
479
755
877
10,705
11,830
561
1,301
99
13,791
(3,086)
1,773
(1,313)
120
(1,193)
23,253
22,060		 Restricted
Funds
£'000
1,084
-
1,274
94
1,223
3,675
2,842
27
-
16
2,885
790
-
790
(6)
784
4,401
5,185		 Endowed
Funds
£'000
-
-
1,002
1,504
(2,100)
406
-
-
-
261
261
145
4,700
4,845
(114)
4,731
58,477
63,208		 2019
Total
£'000
7,509
2,169
2,755
-
2,353
-
14,786
14,672
588
1,301
376
16,937
(2,151)
6,473
4,322
-
4,322
86,131
90,453

PARENT AND SUBSIDIARY UNDERTAKINGS 2019 (Note 14)

The College holds 100% of the issued share capital in Pembroke College Conference and Events (PCCE), a company providing conference and other event services on the College premises, and 100% of the issued share capital in Pembroke College Enterprises Limited (PCEL), a company providing design and build construction services to the College. PCCE and PCEL both have their registered office at New Kings Court, Tollgate, Chandler's Ford, Eastleigh, Hampshite SO53 3LG. Their company registration numbers are PCCE - 7665202 and PCEL - 5174033.

The results and their assets and liabilities of the parent and subsidiaries at the year end were as follows.

Income
Expenditure
Donation to College under gift aid
Result for the year
Total assets
Total liabilities
Net funds at the end of year		 £'000
21,259
-16,937
-
4,322
135,015
-44,388
90,627
Parent
College		 £'000
392
-389
-3
-
64
-64
-
Pembroke
College
Enterprises		 £'000
2,154
-1,301
-853
-
2,275
-2,275
-
Pembroke
College
Conferences

During the year an amount of £1,306k (2018: £1,212k) was paid by the College to PCCE in respect of costs incurred by the College on behalf of the subsidiary including staff costs, catering costs and a share of other running costs and overheads. At the year end, a balance of £1,921k (2018: £1,063k) was owed by PCCE to Pembroke College. At the year end, a balance of £34k (2018: £-5k) was owed by PCEL to the College.

40

Pembroke College Notes to the financial statements For the year ended 31 July 2020

STATEMENT OF INVESTMENT TOTAL RETURN 2019 (Note 15)

The Trustees have adopted a duly authorised policy of total return accounting for the College investment returns with effect from 1 August 2010. The investment return to be applied as income is calculated as 3.5% (2018: 3.5%) of the average of the year-end values of the relevant investments in each of the last 3 years. The preserved (frozen) value of the invested endowment capital represents its open market value at 31 July 2002 together with all subsequent endowments valued at date of gift.

At the beginning of the year:
Gift component of the permanent endowment
Unapplied total return
Expendable endowment
Total Endowments
Movements in the reporting period:
Gift of endowment funds
Recoupment of trust for investment
Allocation from trust for investment
Investment return: total investment income
Investment return: realised and unrealised gains and losses
Less: Investment management costs
Other transfers
Total
Unapplied total return allocated to income in the reporting period
Expendable endowments transferred to income
Net movements in reporting period
At end of the reporting period:
Gift component of the permanent endowment
Unapplied total return
Expendable endowment
Total Endowments		 Trust for
Investment
£'000
23,386
-
23,386
103
-
-
-
-
-
-
103
-
-
0
103
23,489
-
23,489
P		 Unapplied
Total
Return
£'000
-
18,660
18,660
-
-
-
1,081
3,379
-187
-302
3,971
-
-1,510
-1,510
2,461
-
21,121
21,121
ermanent Endowm		 Total
£'000
23,386
18,660
42,046
103
-
-
1,081
3,379
-187
-302
4,074
-
-1,510
-1,510
2,564
23,489
21,121
44,610
ent		 Expendable
Endowment
£'000
-
-
16,431
16,431
899
-
-
423
1,321
-74
188
2,757
-
-590
-590
2,167
-
-
18,598
18,598		 Total
Endowments
£'000
23,386
18,660
16,431
58,477
1,002
-
-
1,504
4,700
-261
-114
6,831
-
-2,100
-2,100
4,731
23,489
21,121
18,598
63,208

41

Pembroke College

Notes to the financial statements

For the year ended 31 July 2020

ANALYSIS OF MOVEMENTS ON FUNDS(Note 20)
At 31st July 2019
Endowment Funds - Permanent
General College Capital
Damon Wells Trust
Stanley Ho Trust
TEPCo Trust
Lee Trust
Tanaka Fund in Numerical Mathematics
Damon Wells Chaplaincy Trust
Oxford Stanion Fund
Shimizu Trust
Nuffield Fund
Aisbitt Fund
BTP Fund
Bandar Trust Fund
Saleh Trust Fund
Rokos Physics
Theology Fellowship
Rokos Economics
Blackstone-Heuston Trust
Leung Trust
Burt 1923 Scholarship Fund
Rhodes Pelczynski Fund
Eekelaar Law Fellowship Fund
Tanaka Fund in Biochemistry
Abraham Trust
Jose Gregorio Hernandez Award
Abraham O'Brien Trust
Other funds < £500k relating to:
Buildings
Bursaries
Fellowships
General purposes
Lecture
Library
Pensions
Scholarships, prizes & grants
Endowment Funds - Expendable
Expendable Capital Fund
Total Endowment Funds - College
Endowment funds held by subsidiaries
Total Endowment Funds - Group
Restricted Funds
Funds < £500k relating to:
Buildings
Fellowships
Scholarships, prizes & grants
Research centres
Other funds
Total Restricted Funds - College
Restricted funds held by subsidiaries
Total Restricted Funds - Group		 At 1 August
2018
£'000
9,681
2,862
1,532
1,390
1,343
1,328
1,177
1,130
1,033
1,012
972
928
831
828
807
744
741
741
697
676
669
649
642
600
560
485
300
653
2,866
2,016
216
12
424
1,502
16,430
58,477
-
58,477
459
1,595
683
572
1,092
4,401
-
4,401		 Incoming
resources
£'000
249
74
39
36
35
34
30
29
27
26
25
24
21
21
21
19
19
19
18
17
18
20
99
15
14
13
12
29
74
52
6
-
11
39
1,321
2,506
-
2,506
97
663
317
1,041
334
2,452
-
2,452		 Resources
expended
£'000
(43)
(13)
(7)
(6)
(6)
(6)
(5)
(5)
(5)
(5)
(4)
(4)
(4)
(4)
(4)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(1)
(1)
(3)
(13)
(9)
(1)
-
(2)
(7)
(73)
(261)
-
(261)
(6)
(1,019)
(313)
(1,136)
(411)
(2,885)
-
(2,885)		 Transfers
£'000
(347)
(103)
(55)
(50)
(48)
(48)
(42)
(338)
(37)
(36)
(35)
(33)
(30)
(30)
(29)
(27)
(27)
(26)
(25)
(24)
(24)
(17)
(23)
(22)
(20)
(17)
(11)
(34)
(103)
(72)
(8)
-
(15)
(54)
(404)
(2,214)
-
(2,214)
40
787
134
-
256
1,217
-
1,217		 Gains/
(losses)
£'000
777
230
124
111
107
107
94
91
83
81
78
74
68
67
65
60
60
58
56
54
53
52
52
48
45
38
24
53
232
162
17
1
33
121
1,324
4,700
-
4,700
-
-
-
-
-
-
-
-		 At 31 July
2019
£'000
10,317
3,050
1,633
1,481
1,431
1,415
1,254
907
1,101
1,078
1,036
989
886
882
860
793
790
789
743
720
713
701
767
639
596
518
324
698
3,056
2,149
230
13
451
1,601
18,598
63,208
-
63,208
590
2,026
821
477
1,271
5,185
-
5,185

42

Pembroke College

Notes to the financial statements For the year ended 31 July 2020

Unrestricted Funds
Designated funds:
Fellowships (Physics & Theology)
971
Pensions
45
Scholarships, prizes & grants
124
Other
293
Total designated funds
1,432
General funds
23,917
Revaluation reserve
-
Pension reserve
(1,921)
Total Unrestricted Funds - College
23,429
Unrestricted funds held by subsidiaries
(176)
Total Unrestricted Funds - Group
23,253
Total Funds
86,131
ANALYSIS OF NET ASSETS BETWEEN FUNDS 2019(Note 22)
Tangible fixed assets
Property investments
Other investments
Net current assets and other long term liabilities
Long term loan finance		 25
1
3
8
37
9,791
-
-
9,828
-
9,828
14,786		 (5)
(0)
(1)
(1)
-7
(12,722)
-
(1,062)
(13,791)
-
(13,791)
(16,937)
Unrestricted
Funds
£'000
32,957
-
28,172
931
(40,000)
22,060		 -
-
-
-
-
997
-
-
997
-
997
0
Restricted
Funds
£'000
-
-
5,185
-
-
5,185		 -
-
-
-
-
1,773
-
-
1,773
-
1,773
6,473
Endowment
Funds
£'000
-
3,596
59,612
-
-
63,208		 991
46
126
300
1,463
23,756
-
(2,983)
22,236
(176)
22,060
90,453
2019
Total
£'000
32,957
3,596
92,969
931
(40,000)
90,453

43