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2023-07-31-accounts

PEMBROKE COLLEGE Annual Report and Financial Statements

Pembroke College Annual Report and Financial Statements 31[st] July 2023

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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
Independent 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 25-44

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PEMBROKE COLLEGE Governing Body, Officers and Advisers Year ended 31 July 2023

MEMBERS OF THE GOVERNING BODY

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

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:

(1) (2) (3) (4) (5) (6) (7) (8)
Dr Brian A'Hearn •
Professor Andrew Baldwin
Professor Guido Bonsaver
Ms Nancy Braithwaite Academic Director • • • • • • •
Professor Min Chen •
Ms Jane Chesters Advisory Fellow (from
Trinity Term 2023)		 •
Mr John Church Advisory Fellow •
Professor Peter Claus Access Fellow • •
Dr Nicholas Cole • •
Professor Owen Darbishire • • •
Dr Ushashi Dasgupta
Professor Ben Davis
Professor Ariel Ezrachi • •
Dr Tim Farrant • •
Professor Linda Flores Proctoral leave 22-23
Professor Sandra Fredman •
Professor Andre Furger Development Fellow • •
Professor Adrian Gregory Sabbatical 22-23
Professor Henrietta Harrison •
Professor Raphael Hauser Vicegerent • • • •
Professor Nick Hawes •
Professor Justin Jones Welfare Fellow •
Professor Guy Kahane
Mr Matthew Kirkby Advisory Fellow (from
Trinity Term 2023)
Professor Pramila Krishnan •
Professor Christopher Melchert

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Governing Body, Officers and Advisers Year ended 31 July 2023

(1) (2) (3) (4) (5) (6) (7) (8)
Dr Eamonn Molloy • •
Professor Lynda Mugglestone • •
Professor Ana Namburete
Professor Andy Orchard Sabbatical 22-23 • •
Professor James Read Sabbatical 22-23 • •
Professor Jonathan Rees
Professor Damian Rossler Dean •
Sir Ernest Ryder Master • • • • • •
Professor Roberto Salguero-
Gomez		 •
Ms Julie Saunders Bursar • • • • •
Mr Julian Schild Advisory Fellow
Professor Nicolai Sinai •
Professor Clive Siviour
Professor Hannah Smithson
Professor Kevin Talbot
Revd Andrew Teal Chaplain •
Professor Stephen Tuck Staff Welfare Fellow •
Professor Theo Van Lint Sabbatical 22-23
Professor Stephen Whitefield • •
Professor Rebecca Williams • •
Professor Tim Woollings •

During the year, the Governing Body was supported by eight committees:

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PEMBROKE COLLEGE Governing Body, Officers and Advisers Year ended 31 July 2023

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

Undergraduate and graduate students attended the Open sessions of meetings of the Governing Body and of the Finance and Planning, Academic, and Welfare and Equality Committees.

Ms V. Gouws (Operations Bursar) attends Governing Body, Governance Committee, Finance and Planning Committee, Staff Committee, Development Committee, and Welfare and Equalities Committee.

Mr P. Robson and Mr I. West served as external members of the Finance and Planning Committee.

In addition to Dr Molloy, Professor I. Posner (non-Governing Body, Fellow by Special Election) and Professor V. Nanda (non-Governing Body, Associate Professor) served on the Investment Committee. Ms L. Patel, Mrs B. Hollond, Mr O. Meyohas, Mr W. Hooton and Mr N. Millar served as external members of the Investment Committee.

Ms S. Forbes, Mr P. Alsop and Mrs S. McKinlay served as members of the Fellows’ Remuneration Committee.

Mrs S. McKinlay and Ms J. Chesters served as external members of the Staff Committee.

COLLEGE OFFICERS

The Officers of the College carrying out the day-to-day management of the College during the year were as follows:

Sir Ernest Ryder Master
Professor Raphael Hauser Vicegerent
Ms Nancy Braithwaite Academic Director
Ms Julie Saunders Bursar
Ms Vanessa Gouws Operations Bursar
Professor Damian Rössler Dean

COLLEGE ADVISERS

Investment Managers

Oxford University Endowment Management Ltd Hamilton Lane (UK) Ltd Vanguard Asset Management Ltd BlackRock Investment Management Brown Advisory Ltd

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PEMBROKE COLLEGE

Governing Body, Officers and Advisers Year ended 31 July 2023

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 2023

The Members of the Governing Body present their Annual Report for the year ended 31 July 2023 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 trustee training and information courses to keep them informed on current issues in the sector and on regulatory requirements is provided.

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 the Master and individual Fellows is determined by factors relevant to the nature of their appointment, including University pay scales.

The remuneration of all college staff who are not also members of the Governing body is set by the Governing Body taking into account recommendations of the Staff and Finance and Planning Committees.

Organisational management

The Governing Body is responsible for all the affairs of the College. It is supported by eight Committees which report regularly to the Governing Body:

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Report of the Governing Body Year ended 31 July 2023

PEMBROKE COLLEGE

The College Officers, listed on Page 5, are responsible for the day-to-day running of the College. All major issues which arise are referred 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 Governing Body has identified and reviewed the risks to which the College is exposed and is satisfied that there are systems and procedures in place to manage those risks. The Governance Committee oversees the College’s risk management process with individual risks delegated to relevant Committees. Where appropriate, the College seeks external advice to support its risk management processes. These include external health and safety audits, compliance checks and the annual financial audit.

The Governing Body has identified a number of critical risk areas and defined for each of these risk areas a risk control process which sets out the level of risk, what the controls are, who is responsible, how frequently the risk should be monitored, and any further actions required. Risks are grouped into six areas outlined below, with each risk reviewed in depth at least once a year by the Governing Body or one of its committees. Risks are grouped into six areas.

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Report of the Governing Body Year ended 31 July 2023

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 2022/23, the College had 476 undergraduates and visiting students, and 368 graduates. 34 Tutorial and 23 Junior and Senior Research Fellows held contractual obligations to undertake teaching and 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 and careers advice.

The College 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 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. It 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.

During the 2022/23 academic year, financial support was available to undergraduates from the UK to assist them with the costs of tuition fees and living costs whilst at the College. In addition to student loans, which are available to undergraduates from within the UK, Oxford Bursaries and Crankstart Scholarships are available to undergraduates from lower income households.

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 2022/23, 43 scholarships and exhibitions were awarded to undergraduates and 25 graduates held College scholarships. 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.

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PEMBROKE COLLEGE Report of the Governing Body Year ended 31 July 2023

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 2023. 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 2023, 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

During 2022/23, outstanding results were achieved by the College’s students in their final exams and our research centres and community of independent researchers continued to flourish. In the Trinity Term exams, 35 undergraduates achieved a First-Class degree and 62 an Upper Second Class degree; the rolling average of First-Class degrees over a 3-year period was 35%. Combined with a number of prestigious University prizes across a wide range of subjects, this represents another excellent year for the College. At the same time, Pembroke students have taken full advantage of the range of opportunities available to them, both within and external to the College, nationally and internationally to broaden their experiences and development alongside their studies. 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. 16 offers were to candidates identified as coming from educationally or socially disadvantaged backgrounds. Furthermore, 12 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 developed a new masterplan and renewed its 20-year planned preventative maintenance schedule, both with environmental sustainability embedded within them.

During the year, construction work continued on the £14m Geoffrey Arthur Building (GAB) re-development project to create 77 new rooms for graduates and four flats for young academics. The project is largely funded from part of a £40m long-term loan taken out in 2019 with the balance coming from a combination of the College’s own resources and fund-raising activity.

Meanwhile, during the year, the College refurbished five of the older staircases in the retained part of the GAB building, and Staircase 18 in the North Quad. Significant work was also carried out on the ground floor of the Master’s Lodgings creating flexible, high-quality office and meeting spaces for use by the College. The College also completed a fire-risk assessment across the whole of the estate.

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.

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PEMBROKE COLLEGE Report of the Governing Body Year ended 31 July 2023

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.

Overall, net income/(expenditure) before investment and other gains/losses was £39,555k in 2022/23 compared to £(228)k in 2021/22. This outturn was materially influenced by a significant legacy from the estate of a generous American alumnus, the majority of which ($43.5m USD) was received during the year.

After investment losses of £(3,749)k (2022: £1,882k gains), net income amounted to £35,806k (2022: £1,654k). As a result, the total funds of the College and its subsidiaries increased in the year to £144,761k on 31 July 2023 from £108,955k on 31 July 2022.

Total income, including the legacy, amounted to £55,535k. Discounting the legacy, total income was £19,117k compared to £16,495k in the previous year. Teaching, research and residential income increased from £8,788k in 2021/22 to £10,412k in 2022/23 due to several factors including the funds received from the College Contribution Committee, an uplift in charitable conference business and students’ accommodation income increasing year on year due to some of the new GAB rooms becoming available. Conference business through the subsidiary also increased to £1.2m in 2022/23. Investment income rose in the year to £4,853k (2022: £3,644k) largely due to the College receiving interest on the legacy.

Total expenditure during the year decreased by £906k from 2021/22 to £13,949k (2022: £14,855k); these lower expenditure figures reflect the decrease in the pension provision of £1,220k. Inflationary cost pressures across the College but specifically in both utilities and food costs added further to the expenditure in the year.

The College’s liability in respect of both Oxford Staff Pension Scheme (OSPS) and the Universities Superannuation Scheme (USS) amounts to £2,176k (2022: £3,396k) in total. As reported in Note 24 to the financial statements, the valuation for OSPS no longer reported a deficit after September 2023. The College monitors discussions regarding contributions carefully, particularly with regard to USS, and budgets conservatively with respect to the likely outcomes of these discussions.

The total declared value for insurance purposes of the College’s real estate amounts to £195,000k.

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 2025, a consideration of key risks that could impact the College and the latest available management information.

During the year to 31 July 2023, the College’s net income before investment losses was £39,555k. With the addition of the legacy, the College’s financial viability has improved considerably. During 2023/24 and 2024/25, frozen undergraduate fees, cost inflation, uncertainty about investment returns in the current economic climate, and notwithstanding the contribution from a significant legacy, mean that the College expects to record operational losses to 2024/25 and thereafter, with the full benefit from the legacy, operational surpluses. The Governing Body is therefore satisfied that it continues to have sufficient cash resources to fund its operations throughout this period, and beyond.

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 aims to hold at least the equivalent of one term’s operating expenditure as free reserves so as to enable it to meet its short-term financial obligations in the event of an unexpected revenue shortfall or increased costs. In 2022/23, one term’s operating expenditure amounted to approximately £4,800k.

Total funds of the College and its subsidiaries, including long-term investments, at the year-end amounted to £144,761k (2021: £108,955k). Endowment funds equated to £73,003k (2022: £75,466k), of which £53,167k

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Report of the Governing Body Year ended 31 July 2023

(2022: £55,021k) is permanent endowment and £19,836k (2021: £20,445k) is expendable endowment. In addition, total restricted funds amount to £11,342k (2021: £10,358k).

The College’s unrestricted funds at the year-end amounted to £62,592k (2022: £26,527k). After deducting an amount of £21,308k (2022: £17,842k) for the book value of fixed assets less associated funding arrangements and the pension reserve of £2,176k (2022: £3,396k), the free reserves amount to a £39,108k (2022: £5,289k). The Governing Body is satisfied that the College has sufficient liquidity at the year end, amounting in total to £55,850k (2022: £33,004k).

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 £133,919k (2022: £100,279k). The annualised total investment return was 0.11% on the weighted average investment portfolio available over the year, compared to the College’s strategic benchmark return of 12.53% (RPI + 3.5%). The faltering performance, for a second year, is primarily attributable to market uncertainty.

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 Development Fellow co-ordinates fundraising activities, and reports to the Development Committee. 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

With the new masterplan for the estate in place and the associated strategy nearing completion, the College is preparing for its 400[th] anniversary in 2024, with an exciting range of events and activities planned.

Academically, the College will continue to support its tutorial system and its research-led teaching as well as to invest in our flourishing research centres and community of independent researchers.

Widening participation will remain centre stage via OxNet, a networked approach to access and outreach work, delivering academically intensive programmes to Sixth Form students which aim to inspire and challenge those who take part, particularly those from disadvantaged and non-traditional university application backgrounds.

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Report of the Governing Body Year ended 31 July 2023

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

Date: 29[th] November 2023

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PEMBROKE COLLEGE

Auditor’s Report Year ended 31 July 2023

Independent Auditor’s Report to the Trustees of Pembroke College

Opinion

We have audited the financial statements of Pembroke College for the year ended 31 July 2023 which comprise the Consolidated Statement of Financial Activities, Consolidated and College Balance Sheets, Consolidated Statement of Cash Flows and notes to the financial statements, including 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

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

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

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

Other information

The trustees are responsible for the other information contained within the annual report. 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, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 this gives rise to a material misstatement in the financial statements themselves. 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.

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PEMBROKE COLLEGE Auditor’s Report Year ended 31 July 2023

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 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, 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 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 of the Charities Act 2011, and report in accordance with the Acts 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.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the parent charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were taxation legislation, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the parent charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the parent charity and the group for fraud. The other laws and regulations we considered in this

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PEMBROKE COLLEGE Auditor’s Report Year ended 31 July 2023

context for the group were General Data Protection Regulations and Health and Safety regulations.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the recognition of income, and the override of controls by management. Our audit procedures to respond to risk of income recognition included selecting a sample of income during the year, agreeing back to the relevant documentation and ensuring it has been recognised correctly. Our audit procedures to respond to the risk of management override included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

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

Date:

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.

16

PEMBROKE COLLEGE Statement of Accounting Policies Year ended 31 July 2023

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 2025, a consideration of key risks, 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 2023

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.

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.

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.

18

PEMBROKE COLLEGE Statement of Accounting Policies Year ended 31 July 2023

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 £5,000 together with expenditure on equipment costing more than £5,000 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.

9. Heritage Assets

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

19

PEMBROKE COLLEGE Statement of Accounting Policies Year ended 31 July 2023

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 out with 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.

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

20

PEMBROKE COLLEGE Statement of Accounting Policies Year ended 31 July 2023

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 the Universities Superannuation Scheme (USS) and the University of Oxford Staff Pension Scheme (OSPS). These schemes are hybrid pension schemes, providing defined benefits as well as benefits based on defined contributions. The assets of each scheme are held in a separate trusteeadministered fund. Because of the mutual nature of the schemes, the assets are not attributed to individual employers and scheme-wide contribution rates are set. The College is therefore exposed to actuarial risks associated with other employers’ employees and is unable to identify its share of the underlying assets and liabilities of the schemes on a consistent and reasonable basis.

As required by Section 28 of FRS 102 “Employee benefits”, the College therefore accounts for the schemes as if they were wholly defined contribution schemes. As a result, the amount charged to the profit and loss account represents the contributions payable to each scheme. Since the College has entered into agreements (the Recovery Plans) that determine how each employer within the schemes will fund the overall deficit, the College recognises a liability for the contributions payable that arise from the agreements (to the extent that they relate to the deficit) with related expenses being recognised through the profit and loss account.

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

Key sources of estimation uncertainty (if the deficit recovery scheme deficits or charges are material to the company a note should be made). The pension deficits recorded are dependent on estimates of future employment patterns and interest rates. The effects of changes to these assumptions are shown in note 24.

21

Pembroke College

Consolidated Statement of Financial Activities For the year ended 31 July 2023

----- Start of picture text -----
Unrestricted Restricted Endowed 2023 2022
Funds Funds Funds Total Total
Notes £'000 £'000 £'000 £'000 £'000
INCOME AND ENDOWMENTS FROM:
Charitable activities:
Teaching, research and residential 1 8,646 1,766 - 10,412 8,788
Other Trading Income 3 1,220 - - 1,220 1,137
Donations and legacies 2 36,754 1,963 213 38,930 2,925
Investments
Investment income 4 1,811 316 2,726 4,853 3,644
Total return allocated to income 15 1,080 1,651 (2,731) - -
Other income 5 - 120 - 120 1
Total income 49,511 5,816 208 55,535 16,495
EXPENDITURE ON:
Charitable activities:
Teaching, research and residential 9,311 4,638 - 13,949 14,855
Generating funds:
Fundraising 443 57 - 500 561
Trading expenditure 829 - - 829 874
Investment management costs 109 62 531 702 433
Total Expenditure 6 10,692 4,757 531 15,980 16,723
Net Income/(Expenditure) before gains 38,819 1,059 (323) 39,555 (228)
Net gains/(losses) on investments 12, 13 (1,643) - (2,106) (3,749) 1,882
-
Net Income/(Expenditure) 37,176 1,059 (2,429) 35,806 1,654
Transfers between funds 20 109 (75) (34) - -
Net movement in funds for the year 37,285 984 (2,463) 35,806 1,654
Fund balances brought forward 20 23,131 10,358 75,466 108,955 107,301
Funds carried forward 20 60,416 11,342 73,003 144,761 108,955
----- 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 2023

----- Start of picture text -----
2023 2022 2023 2022
Group Group College College
Notes £'000 £'000 £'000 £'000
FIXED ASSETS
Tangible assets 10 46,299 41,564 46,473 41,738
Property investments 12 7,425 3,430 7,425 3,430
Other Investments 13 126,494 96,849 126,494 96,849
Total Fixed Assets 180,218 141,843 180,392 142,017
CURRENT ASSETS
Stocks 226 219 226 219
Debtors 16 1,592 1,636 1,664 1,623
Investments 5,509 5,819 5,509 5,819
Cash at bank and in hand 2,722 6,587 2,132 6,044
Total Current Assets 10,049 14,261 9,531 13,705
LIABILITIES
Creditors: Amounts falling due within one year 17 3,265 3,708 2,746 3,156
NET CURRENT ASSETS 6,784 10,553 6,785 10,549
TOTAL ASSETS LESS CURRENT LIABILITIES 187,002 152,396 187,177 152,566
CREDITORS: falling due after more than one year 18 40,065 40,045 40,065 40,045
NET ASSETS BEFORE PENSION ASSET OR LIABILITY 146,937 112,351 147,112 112,521
Defined benefit pension scheme liability 24 2,176 3,396 2,176 3,396
TOTAL NET ASSETS 144,761 108,955 144,936 109,125
FUNDS OF THE COLLEGE
Endowment funds 73,003 75,466 73,003 75,466
Restricted funds 11,342 10,358 11,342 10,358
Unrestricted funds
Designated funds 52,621 16,740 52,621 16,740
General funds 9,971 9,787 10,146 9,957
Pension reserve 24 (2,176) (3,396) (2,176) (3,396)
144,761 108,955 144,936 109,125
----- End of picture text -----

The financial statements were approved and authorised for issue by the Governing Body of Pembroke College on 29th November 2023

Master: Sir E. Ryder

Bursar: J Saunders

23

Pembroke College

Consolidated Statement of Cash Flows For the year ended 31 July 2023

----- Start of picture text -----
2023 2022
Notes £'000 £'000
Net cash provided/ (used in) operating activities 27 35,005 1,337
Cash flows from investing activities
Dividends, interest and rents from investments 4,853 3,644
Finance costs paid (837) (983)
Purchase of investment property (3,495) -
Purchase of property, plant and equipment (6,021) (7,410)
Proceeds from sale of investments 2,903 173
Purchase of investments (36,796) (1,600)
Net reduction to current asset investments 310 3,455
Net cash used in investing activities (39,083) (2,721)
Cash flows from financing activities
Receipt of endowment 213 185
Net cash provided used in financing activities 213 185
Change in cash and cash equivalents in the reporting period (3,865) (1,199)
Cash and cash equivalents at the beginning of the
reporting period 6,587 7,786
Cash and cash equivalents at the end of the reporting
period 2,722 6,587
----- End of picture text -----

24

Pembroke College Notes to the financial statements For the year ended 31 July 2023

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		 2023
£'000
1,790
1,372
637
144
555
4,148
8,646
1,766
1,766
10,412
10,412		 2022
£'000
1,758
1,289
491
90
189
3,238
7,055
1,733
1,733
8,788
8,788

The above analysis includes £3,306k received from Oxford University from publicly accountable funds under the CFF Scheme (2022: £3,134k).

2
DONATIONS AND LEGACIES
Donations and Legacies
Unrestricted funds
Restricted funds
Endowed funds		 2023
2022
£'000
£'000
36,754
777
1,963
1,963
213
185
38,930
2,925
3
INCOME FROM OTHER TRADING ACTIVITIES
Subsidiary company trading income
Other trading income
The College use a legacy pipeline to record those legacies that are known to the College but do
the legacy pipeline was £2,246k (2022: £Nil).		 2023
2022
£'000
£'000
1,190
1,036
30
101
not yet fulfil the criteria for income recognition. At 31 July 2023, the value of
1,220
1,137
4
INVESTMENT INCOME
Unrestricted funds
Commercial rent
Equity dividends
Bank interest
Other interest		 2023
2022
£'000
£'000
67
77
554
540
1,189
40
1
1
1,811
658
Restricted funds
Equity dividends
Bank interest		 316
270
-
-
316
270
Endowed funds
Commercial rent
Equity dividends
Bank interest		 292
277
2,434
2,439
-
-
2,726
2,716
Total Investment income 4,853
3,644
5
OTHER INCOME
Government Funding (Low Carbon Skills Fund)		 2023
2022
£'000
£'000
120
1
120
1

25

Pembroke College Notes to the financial statements For the year ended 31 July 2023

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
Investment management costs
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		 2023
£'000
6,373
5,613
1,963
13,949
270
285
-
169
187
-
61
357
702
2,031
15,980		 2022
£'000
5,571
4,190
5,094
14,855
412
314
-
81
144
5
68
416
428
1,868
16,723

The 2023 resources expended of £15,980k represented £10,692k (2022: £12,490k) from unrestricted funds, £4,757k (2022: £3,904k) from restricted funds and £531k (2022: £329k) from endowed funds.

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 (2022 - £0k)

26

Pembroke College Notes to the financial statements For the year ended 31 July 2023

7 ANALYSIS OF SUPPORT AND GOVERNANCE COSTS

Financial administration
Domestic administration
Human resources
IT
Depreciation
Write off of fixed assets
Bank interest payable
Other finance charges (including pension provision movement)
Investment management costs
Governance costs		 Generating
Funds
£'000
206
58
-
21
132
-
-
-
701
2
1,120		 Teaching
and
Research
£'000
549
165
129
293
1,153
-
837
(1,193)
-
30
1,963		 2023
Total
£'000
755
223
129
314
1,285
-
837
(1,193)
701
32
3,083
In addition to the above interest paid, interest payable on the Private Placement of £327k (2022: £181k) was capitalised in fixed as
Generating
Funds
£'000
Financial administration
190
Domestic administration
98
Human resources
-
IT
23
Depreciation
172
Write off of fixed assets
-
Bank interest payable
-
Other finance charges (including pension provision movement)
-
Investment management costs
427
Governance costs
2
912		 sets in the year.
Teaching
and
Research
£'000
419
201
50
285
1,060
529
983
1,539
-
28
5,094		 2022
Total
£'000
609
299
50
308
1,232
529
983
1,539
427
30
6,006

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		 2023
£'000
27
5
32		 2022
£'000
25
5
30

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.

8
GRANTS AND AWARDS
Unrestricted funds
Grants to individuals:
Scholarships, prizes and grants
Bursaries and hardship awards
Total unrestricted
Restricted funds
Grants to individuals:
Scholarships, prizes and grants
Bursaries and hardship awards
Total restricted
Total grants and awards
During the year the College funded research awards and bursaries to students from its restricted and unrestricted fund as follows:		 2023
£'000
157
84
241
378
20
398
639		 2022
£'000
36
73
109
500
12
512
621

The figure included above represents the cost to the College of the Oxford Bursary scheme. Students of this college received £299k (2022: £209k).Some of those students also received fee waivers amounting to £25k (2022: £23k).

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 2023

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		 2023
£'000
6,104
542
(113)
181
6,714
53
71
5
23
152
89
79
5
28
201
25
5
2
6
38		 2022
£'000
5,376
519
2,700
176
8,771
44
69
5
22
140
73
75
5
24
177
24
5
2
8
39

Redundancy payments are accounted for in the period in which the employee was informed of the decision. There was no redundancy payments made in the year (None in 2022).

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:

£60,001-£70,000
Total
The number of the above employees with retirement benefits accruing was as follows:
In defined benefits schemes		 3
3
3		 1
1
1

28

Pembroke College Notes to the financial statements For the year ended 31 July 2023

10 TANGIBLE FIXED ASSETS

Group
Cost
At start of year
Additions
Transfers
Disposals
At end of year
Depreciation and impairment
At start of year
Depreciation charge for the year
Depreciation on disposals
Impairment
At end of year
Net book value
At end of year
At start of year
College
Cost
At start of year
Additions
Transfers
Disposals
At end of year
Depreciation and impairment
At start of year
Charge for the year
At end of year
Net book value
At end of year
At start of year		 Assets
Under
Construction
£'000
11,014
4,983
(246)
-
15,751
-
-
-
-
-
15,751
11,014
Assets
Under
Construction
£'000
11,014
4,983
(246)
-
15,751
-
-
-
15,751
11,014		 Freehold
land and
buildings
£'000
42,231
625
246
43,102
13,381
961
-
-
14,342
28,760
28,850
Freehold
land and
buildings
£'000
42,393
625
246
43,264
13,381
961
14,342
28,922
29,012		 Plant and
machinery
£'000
2,666
14
-
2,680
1,687
179
-
-
1,866
814
979
Plant and
machinery
£'000
2,666
14
-
2,680
1,687
179
1,866
814
979		 Fixtures,
fittings and
equipment
£'000
2,715
399
-
3,114
1,994
146
-
-
2,140
974
721
Fixtures,
fittings and
equipment
£'000
2,727
399
-
3,126
1,994
146
2,140
986
733		 Total
£'000
58,626
6,021
-
-
64,647
17,062
1,286
-
-
18,348
46,299
41,564
Total
£'000
58,800
6,021
-
-
64,821
17,062
1,286
18,348
46,473
41,738

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 2023 (2022 - Nil)

29

Pembroke College Notes to the financial statements For the year ended 31 July 2023

12 PROPERTY INVESTMENTS

Group
Valuation at start of year
Additions and improvements at cost
Revaluation gains/(losses) in the year
Valuation at end of year
College
Valuation at start of year
Additions and improvements at cost
Revaluation gains/(losses) in the year
Valuation at end of year		 Commercial
£'000
3,430
3,495
500
7,425
Commercial
£'000
3,430
3,495
500
7,425		 2023
Total
£'000
3,430
3,495
500
7,425
2023
Total
£'000
3,430
3,495
500
7,425		 2022
Total
£'000
3,360
-
70
3,430
2022
Total
£'000
3,360
-
70
3,430

A formal valuation of the commercial and other properties was prepared by Cluttons as at 31 July 2023 this has resulted in a valuation increase of £500k. One investment property was purchased in the year at a cost of £3,495k.

13 OTHER INVESTMENTS

All investments are held at fair value.

Group investments
Valuation at start of year
New money invested
Amounts withdrawn
Reinvested income
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
-
9,834
-
9,834		 Held in
the UK
£'000
458
87,444
28,758
116,660		 2023
Total
£'000
458
97,278
28,758
126,494		 Held outside
the UK
£'000
-
11,312
-
11,312		 2023
£'000
96,849
36,796
(5,387)
2,485
(4,249)
126,494
-
126,494
Held in
the UK
£'000
426
82,154
2,957
85,537		 2022
£'000
94,053
1,600
(1,859)
1,686
1,369
96,849
-
96,849
2022
Total
£'000
426
93,466
2,957
96,849

30

Pembroke College Notes to the financial statements For the year ended 31 July 2023

14 PARENT AND SUBSIDIARY UNDERTAKINGS

The College wholly owns both, Pembroke College Conference and Events (PCCE), a company limited by guarantee which provides 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
51,786
(15,980)
-
35,806
189,923
(44,987)
144,936
Parent College		 £'000
3,124
(3,095)
(29)
-
519
(519)
-
Pembroke
College
Enterprises
Limited		 £'000
1,190
(844)
(346)
-
522
(522)
-
Pembroke
College
Conferences
and Events

During the year an amount of £829k (2022: £863k) 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 £291k (2022: £425k) was owed by PCCE to Pembroke College. At the year end, a balance of £232k was owed by PCEL to the College (2022: £919k was owed by the College) and the income received by PCEL is derived almost entirely from 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% (2022: 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
26,303
-
-
26,303
103
-
-
-
-
103
-
-
103
26,406
-
-
26,406
Pe		 Unapplied
Total
Return
£'000
-
28,718
-
28,718
-
1,988
(1,535)
(387)
(31)
35
(1,991)
(1,991)
(1,957)
-
26,761
-
26,761
rmanent Endowmen		 Total
£'000
26,303
28,718
-
55,021
103
1,988
(1,535)
(387)
(31)
138
(1,991)
(1,991)
(1,854)
26,406
26,761
-
53,167
t		 Expendable
Endowment
£'000
-
-
20,445
20,445
110
738
(571)
(144)
(3)
130
(740)
(740)
(610)
-
-
19,836
19,836		 Total
Endowments
£'000
26,303
28,718
20,445
75,466
213
2,726
(2,106)
(531)
(34)
268
(2,731)
(2,731)
(2,464)
26,406
26,761
19,836
73,003

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 2023

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
Amounts owed to Group undertakings
Taxation and social security
Accruals and deferred income
Other creditors
18
CREDITORS: falling due after more than one year
Bank loans
Other creditors		 2023
Group
£'000
310
216
-
18
743
305
1,592
2023
Group
£'000
291
-
184
2,593
197
3,265
2023
Group
£'000
40,000
65
40,065		 2022
Group
£'000
166
175
-
13
977
305
1,636
2022
Group
£'000
133
-
154
3,242
179
3,708
2022
Group
£'000
40,000
45
40,045		 2023
College
£'000
204
216
523
18
398
305
1,664
2023
College
£'000
291
-
184
2,076
195
2,746
2023
College
£'000
40,000
65
40,065		 2022
College
£'000
129
175
425
12
577
305
1,623
2022
College
£'000
133
919
154
1,772
178
3,156
2022
College
£'000
40,000
45
40,045

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 of 2.91%.

19 PROVISIONS FOR LIABILITIES AND CHARGES

The College has no provisions at 31 July 2023 (2022 - None)

32

Notes to the financial statements For the year ended 31 July 2023

Pembroke College

20
ANALYSIS OF MOVEMENTS ON FUNDS
At 31st July 2023
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
Chris Rokos Fund in Computer Science
Shimizu Trust
Nuffield Fund
Aisbitt Fund
BTP Fund
Tanaka Fund in Biochemistry
Oxford Stanion Fund
Bandar Trust Fund
Saleh Trust Fund
Rokos Physics
Theology Fellowship
Rokos Economics
Blackstone-Heuston Trust
Leung Trust
Mike and Hilary Wagstaff Fund
Burt 1923 Scholarship Fund
Rhodes Pelczynski Fund
Eekelaar Law Fellowship Fund
Abraham Trust
Jose Gregorio Hernandez Award
Chris Rokos Fund for Black STEM Grad. Scholarships
Abraham O'Brien Trust
Italian Fellowship
Lewin Trust
Damon Wells Music and Chapel Fund
Sue Cormack Trust
Pension Fund
Other funds < £500k relating to:
Buildings
Bursaries
Fellowships
General purposes
Lecture
Chapel and Library
Scholarships, prizes & grants
Endowment Funds - Expendable
Expendable Capital Fund
Total Endowment Funds - College
Endowment funds held by subsidiaries
Total Endowment Funds - Group		 At 1 August
2022
£'000
11,918
2,975
1,887
1,711
1,653
1,636
1,447
1,424
1,273
1,246
1,197
1,143
1,139
1,048
1,025
1,020
995
916
912
911
857
854
839
829
827
738
689
611
600
575
569
551
543
520
385
809
1,839
2,736
266
61
1,847
20,445
75,466
-
75,466		 Incoming
resources
£'000
430
107
68
62
60
60
51
52
47
45
42
41
41
37
37
36
36
33
32
32
31
31
30
30
32
27
25
22
22
21
21
19
20
20
15
31
67
98
9
2
167
849
2,939
-
2,939		 Resources
expended
£'000
(84)
(21)
(13)
(12)
(12)
(12)
(10)
(10)
(9)
(9)
(8)
(8)
(8)
(7)
(7)
(7)
(7)
(6)
(6)
(6)
(6)
(6)
(6)
(6)
(6)
(5)
(5)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(3)
(6)
(13)
(19)
(2)
-
(13)
(144)
(531)
-
(531)		 Transfers
£'000
(431)
(108)
(68)
(62)
(60)
(59)
(52)
(52)
(46)
(45)
(43)
(41)
(41)
(38)
(37)
(37)
(36)
(33)
(33)
(33)
(31)
(31)
(30)
(30)
(30)
(27)
(25)
(22)
(22)
(21)
(21)
(20)
(20)
(19)
(46)
(29)
(67)
(99)
(10)
(2)
(67)
(743)
(2,765)
-
(2,765)*		 Gains/
(losses)
£'000
(333)
(83)
(53)
(48)
(46)
(46)
(40)
(40)
(36)
(35)
(33)
(32)
(32)
(29)
(29)
(28)
(28)
(26)
(25)
(25)
(24)
(24)
(23)
(23)
(23)
(21)
(19)
(17)
(17)
(16)
(16)
(15)
(15)
(15)
(11)
(23)
(51)
(76)
(7)
(2)
(52)
(571)
(2,106)
-
(2,106)		 At 31 July
2023
£'000
11,500
2,870
1,821
1,651
1,595
1,579
1,396
1,374
1,229
1,202
1,155
1,103
1,099
1,011
989
984
960
884
880
879
827
824
810
800
800
712
665
590
579
555
549
531
524
502
340
782
1,775
2,640
256
59
1,882
19,836
73,003
-
73,003

33

Pembroke College

Notes to the financial statements For the year ended 31 July 2023

Restricted Funds
Library
Research Centre - Quill
Research Centre - CCW
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
Unrestricted Funds
Designated funds:
Financial Resilience Fund
Private Placement Fund
Theology Fellowship
Physics Fellowship
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**		 At 1 August
2022
£'000
1,478
576
741
888
2,796
1,188
338
2,353
10,358
-
10,358
-
14,361
547
545
531
756
16,740
9,962
-
(3,396)
23,306
(175)
23,131
108,955		 Incoming
resources
£'000
53
915
1,382
182
269
566
587
211
4,165
-
4,165
-
442
20
20
19
27
528
47,904
-
-
48,431
-
48,431
55,535		 Resources
expended
£'000
(10)
(714)
(1,456)
(99)
(1,150)
(373)
(611)
(343)
(4,757)
-
(4,757)
-
(86)
(4)
(4)
(6)
(5)
(105)
(11,807)
-
1,220
(10,692)
-
(10,692)
(15,980)		 Transfers
£'000
-
-
-
8
1,011
226
-
331
1,576
-
1,576
35,776
(259)
-
-
(15)
(19)
35,483
(34,294)
-
-
1,189
1,189
-*		 Gains/
(losses)
£'000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(11)
(14)
(25)
(1,618)
-
-
(1,643)
-
(1,643)
(3,749)		 At 31 July
2023
£'000
1,521
777
667
979
2,926
1,607
313
2,552
11,342
-
11,342
35,776
14,458
563
561
518
745
52,621
10,146
-
(2,176)
60,591
(175)
60,416
144,761

*Transfers included £1,080k and £1,651k released to unrestricted and restricted funds respectively in accordance with the College's total return policy.

** The Financial Resilience Fund was designated by the College's Trustees in this financial year. Prior year comparative of this note is shown in note 34

34

Pembroke College Notes to the financial statements For the year ended 31 July 2023

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
Chris Rokos Fund in Computer Science Supports a Fellowship in Computer Science
Nuffield Fund Supports general expenditure
Aisbitt Fund Supports a Fellowship in English Literature
BTP Fund Supports a Fellowship 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
Mike and Hilary Wagstaff Fund Supports student activities and programmes
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
Chris Rokos Fund for Black STEM Scholarships Supports graduate scholarships for black students
Abraham O'Brien Trust Supports a Fellowship in Medicine
Italian Fellowship Supports a Fellowship in Italian
Lewin Trust Supports a Fellowship in Philosophy
Sue Cormack Trust Supports a Fellowship in Management
Sue Cormack Trust Supports Music and Chapel
Pension Fund Supports payment of Pensions
Endowment Funds - Expendable:
General College Capital General Expendable Endowment
Designated Funds
Financial Resilience Fund Supports resilience for the long term by generating a return, from the
long term investment pool, to support the charitable objects and aims.

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.

35

Pembroke College Notes to the financial statements For the year ended 31 July 2023

22 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Property investments
Other investments
Net current assets and other long term liabilities
Long term loan finance		 Unrestricted
Funds
£'000
46,299
-
57,479
(3,363)
(40,000)
60,416		 Restricted
Funds
£'000
-
-
3,436
7,906
-
11,342		 Endowment
Funds
£'000
-
7,425
65,578
-
-
73,003		 2023
Total
£'000
46,299
7,425
126,494
4,543
(40,000)
144,761

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.

36

Pembroke College Notes to the financial statements For the year ended 31 July 2023

Remuneration paid to trustees

Range
£2,001-£3,000
£10,001-£11,000
£11,001-£12,000
£12,001-£13,000
£14,001-£15,000
£15,001-£16,000
£19,001-£20,000
£21,001-£22,000
£22,001-£23,000
£24,001-£25,000
£25,001-£26,000
£26,001-£27,000
£27,001-£28,000
£28,001-£29,000
£29,001-£30,000
£30,001-£31,000
£31,001-£32,000
£32,001-£33,000
£50,001-£51,000
£51,001-£52,000
£52,001-£53,000
£53,001-£54,000
£54,001-£55,000
£59,001-£60,000
£61,001-£62,000
£63,001-£64,000
£64,001-£65,000
£66,001-£67,000
£91,001-£92,000
£94,001-£95,000
£112,001-£113,000
£119,001-£120,000
£122,001-£123,000
£129,001-£130,000
£137,001-£168,000
Total		 1
1
1
1
7
4
5
1
1
2
1
1
3
1
1
1
1
3
1
1
38
Number of
Trustees/Fellows		 £
£
2,359
1
10,718
1
11,367
12,234
1
14,852
15,361
1
19,625
1
21,690
22,236
8
196,850
178,337
2
51,726
107,058
12
317,813
135,906
28,315
1
28,523
29,117
60,553
31,669
32,004
1
50,843
1
51,363
160,838
1
54,425
1
59,783
61,842
3
184,512
63,890
64,361
66,215
3
274,217
284,422
1
112,149
119,027
1
121,548
129,537
129,343
1
168,000
1,605,281
41
1,879,347
2022
Gross remuneration, taxable benefits and
pension contributions
Number of
Trustees/Fellows
Gross remuneration, taxable benefits and
pension contributions
2023

10 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 receive reimbursement of personal expenses necessarily incurred in connection with their services to the College as Trustees. During the year a total of £110 (2022 - £0) was reimbursed to one (2022 - 0) of the Trustees .

See also note 31 Related Party Transactions.

Key management remuneration

The total remuneration paid to key management was £460k (2022: £666k).

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

37

Pembroke College Notes to the financial statements For the year ended 31 July 2023

24 PENSION SCHEMES

The College participates in two principal pension schemes for its staff – the Universities Superannuation Scheme (USS) and the University of Oxford Staff Pension Scheme (OSPS). The assets of each scheme are held in separate trustee-administered funds. USS and OSPS are contributory mixed benefit schemes (i.e. they provide benefits on a defined benefit basis – based on length of service and pensionable salary – and on a defined contribution basis – based on contributions into the scheme). Both are multi-employer schemes and the College is unable to identify its share of the underlying assets and liabilities relating to defined benefits of each scheme on a consistent and reasonable basis. Therefore, in accordance with the accounting standard FRS 102 paragraph 28.11, the College accounts for the schemes as if they were defined contribution schemes. As a result, the amount charged to the Income and Expenditure Account represents the contributions payable to the schemes in respect of the accounting period. 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. The College has also made available the National Employment Savings Trust for employees who are eligible under automatic enrolment regulations to pension benefits but not eligible for either USS or OSPS.

Schemes accounted for under FRS 102 as defined contribution schemes

Actuarial valuations

Qualified actuaries periodically value USS and OSPS defined benefits using the ‘projected unit method’, embracing a market value approach. The resulting levels of contribution take account of actuarial surpluses or deficits in each scheme. The financial assumptions were derived from market conditions prevailing at the valuation date. The results of the latest actuarial valuations and the assumptions which have the most significant effect on the results were:

a. The discount rate (forward rates) for the USS valuation was:

Fixed interest gilt yield curve plus: Pre-retirement 2.75%, post-retirement 1.00%

b. The discount rate for the OSPS valuation was:

Pre-retirement:Equal to the UK nominal gilt curve at the valuation date plus 2.25% p.a. for calculations with effective dates up to and including 30 March 2023; and 1.75% p.a. for calculations with effective dates on or after 31 March 2023.

Post-retirement: Equal to the UK nominal gilt curve at the valuation date plus 0.5% p.a. at each term.

c. Pensions increases (CPI) for the USS valuation were:

Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves, less 1.1% p.a. to 2030, reducing linearly by 0.1% p.a. to a long term difference of 0.1% p.a. from 2040.

d. Increases to pensions in payment for the OSPS valuation were:

RPI inflation is derived from the geometric difference between the UK nominal gilt curve and the UK index-linked curve at the valuation date, less 0.3% p.a. at each term. CPI inflation is derived from the RPI inflation assumption, less the Scheme Actuary’s best estimate of the long-term difference between RPI and CPI inflation as applies from time to time (1.0% p.a. up to February 2030 and 0.1% p.a. thereafter as at 31 March 2022).

For pension increases linked to inflation, a pension increase curve is constructed based on either the RPI, CPI or the average of the RPI and CPI inflation curves described above, adjusted to allow for the different maximum and minimum annual increases that apply, and the Scheme Actuary’s best estimate of inflation volatility as applies from time to time.

e. The USS and OSPS employer contribution rates include provisions for the cost of future accrual of defined benefits, deficit contributions, administrative expenses and defined contributions.

Sensitivity of actuarial valuation assumptions

Surpluses or deficits which arise at future valuations may impact on the company’s future contribution commitment. The sensitivities regarding the principal assumptions used to measure the scheme liabilities are set out below:

38

Pembroke College Notes to the financial statements For the year ended 31 July 2023

Deficit Recovery Plans

In line with FRS 102 paragraph 28.11A, the College has recognised a liability for the contributions payable for the agreed deficit funding plan. A provision of £2,176k has been made at 31 July 2023 (2022: £3,396k) for the present value of the estimated future deficit funding element of the contributions payable under these agreements, using the assumptions shown. The provision reduces as the deficit is paid off according to the pension recovery scheme.

The pension charge recorded by the College during the accounting period (excluding pension finance costs) was equal to the contributions payable after allowance for the deficit recovery plan as follows:

These amounts include £1.2m (2022: £1m) contributions payable to defined contribution schemes at rates specified in the rules of those plans.

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 holds basic financial instruments,as described in the acounting policy. No financial instruments are considered complex in nature.

27 RECONCILIATION OF NET INCOMING RESOURCES TO

RECONCILIATION OF NET INCOMING RESOURCES TO
NET CASH FLOW FROM OPERATIONS 2023 2022
Group Group
£'000 £'000
Net income 35,806 1,654
Elimination of non-operating cash flows:
Investment income (4,853) (3,644)
Losses/(Gains) in investments 3,749 (1,439)
Endowment donations (213) (185)
Depreciation 1,286 1,232
Financing costs 837 983
(Increase) in stock (7) (15)
(Increase)/Decrease in debtors 44 (34)
Increase/(Decrease) in creditors (424) 1,271
(Decrease)/Increase in provisions - -
(Decrease)/Increase in pension scheme liability (1,220) 1,514
Net cash provided by (used in) operating activities 35,005 1,337

Net cash provided by (used in) operating activities

39

Pembroke College Notes to the financial statements For the year ended 31 July 2023

28 ANALYSIS OF NET DEBT

Cash at bank and in hand
Current asset investments
Investment cash held
Loans falling due after more than one year
Total net debt		 2023
£'000
2,722
5,509
28,758
(40,000)
(3,011)		 2022
£'000
6,587
5,819
2,957
(40,000)
(24,637)

29 FINANCIAL COMMITMENTS

Outstanding costs in relation to an ongoing building project were estimated to be £1.2m at the year end. These costs will be paid in the financial year ending 31st July 2024.

30 CAPITAL COMMITMENTS

The College had contracted commitments at 31 July 2023 for future capital projects totalling £1.5m (2022 - £3.3m).

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 College Accountant 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		 2023
No.
3
1
4		 2022
No.
3
1
4

The Academic Director was a trustee of both the College and Pembroke College Oxford JCR Art Collection Fund. The College was reimbursed for invigilation payments of £1.8k made to students in year. There was nothing outstanding at year end.

Over the end of the financial year, the College hosted a Summer School for International Colour Vision Society where a College trustee also sits on the Board of Directors. The College has accrued income of £7k in relation to this service at year end.

32 CONTINGENT LIABILITIES

The College does not have any contingent liabilities at 31 July 23 (2022 - Nil)

33 POST BALANCE SHEET EVENTS

None

40

Pembroke College Notes to the financial statements For the year ended 31 July 2023

34 PRIOR YEAR COMPARATIVES

Consolidated Statement of Financial Activities
For the year ended 31 July 2022
INCOME AND ENDOWMENTS FROM:
Charitable activities:
Teaching, research and residential
Other Trading Income
Donations and legacies
Investments
Investment income
Total return allocated to income
Other 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
Other gains
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
7,055
1,137
777
658
1,031
1
10,659
10,990
555
874
71
12,490
(1,831)
189
156
(1,486)
17
(1,469)
24,600
23,131		 Restricted
Funds
£'000
1,733
-
1,963
270
1,550
-
5,516
3,865
6
-
33
3,904
1,612
-
46
1,658
5
1,663
8,695
10,358		 Endowed
Funds
£'000
-
-
185
2,716
(2,581)
-
320
-
-
-
329
329
(9)
1,250
241
1,482
(22)
1,460
74,006
75,466		 2022
Total
£'000
8,788
1,137
2,925
3,644
-
1
16,495
14,855
561
874
433
16,723
(228)
1,439
443
1,654
-
1,654
107,301
108,955

PARENT AND SUBSIDIARY UNDERTAKINGS 2022 (Note 14)

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
18,377
(16,723)
-
1,654
155,722
(46,597)
109,125
Parent College		 £'000
7,194
(7,093)
(101)
-
1,251
(1,251)
-
College
Enterprises
Limited		 £'000
1,036
(874)
(162)
-
646
(646)
-
College
Conferences
and Events

During the year an amount of £863k (2021: £196k) 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 £425k (2021: £230k) was owed by PCCE to Pembroke College. At the year end, a balance of £919k was owed by the College to PCEL (2021: £224k was owed by the College).

41

Pembroke College Notes to the financial statements For the year ended 31 July 2023

STATEMENT OF INVESTMENT TOTAL RETURN 2022 (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% (2022: 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
26,163
-
-
26,163
140
-
-
-
-
140
-
-
140
26,303
-
-
26,303
Pe		 Unapplied
Total
Return
£'000
-
27,769
-
27,769
-
1,980
1,152
(305)
3
2,830
(1,881)
(1,881)
949
-
28,718
-
28,718
rmanent Endowmen		 Total
£'000
26,163
27,769
-
53,932
140
1,980
1,152
(305)
3
2,970
(1,881)
(1,881)
1,089
26,303
28,718
-
55,021
t		 Expendable
Endowment
£'000
-
-
20,074
20,074
45
736
339
(24)
(25)
1,071
(700)
(700)
371
-
-
20,445
20,445		 Total
Endowments
£'000
26,163
27,769
20,074
74,006
185
2,716
1,491
(329)
(22)
4,041
(2,581)
(2,581)
1,460
26,303
28,718
20,445
75,466

42

Pembroke College

Notes to the financial statements

For the year ended 31 July 2023

ANALYSIS OF MOVEMENTS ON FUNDS(Note 20)
At 31st July 2022
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
Chris Rokos Fund in Computer Science
Shimizu Trust
Nuffield Fund
Aisbitt Fund
BTP Fund
Tanaka Fund in Biochemistry
Oxford Stanion Fund
Bandar Trust Fund
Saleh Trust Fund
Rokos Physics
Theology Fellowship
Rokos Economics
Blackstone-Heuston Trust
Leung Trust
Mike and Hilary Wagstaff Fund
Burt 1923 Scholarship Fund
Rhodes Pelczynski Fund
Eekelaar Law Fellowship Fund
Abraham Trust
Jose Gregorio Hernandez Award
Chris Rokos Fund for Black STEM Grad. Scholarships
Abraham O'Brien Trust
Italian Fellowship
Lewin Trust
Sue Cormack Trust
Damon Wells Music and Chapel Fund
Pension Fund
Other funds < £500k relating to:
Buildings
Bursaries
Fellowships
General purposes
Lecture
Chapel and Library
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
Research Centre - Quill
Research Centre - CCW
Funds < £500k relating to:
Buildings
Fellowships
Scholarships, prizes & grants
Research Centres
Other funds
Restricted funds held by subsidiaries
Total Restricted Funds - Group		 At 1 August
2021
£'000
11,713
3,464
1,855
1,682
1,625
1,608
1,422
1,400
1,251
1,224
1,176
1,123
1,037
1,030
1,007
1,002
977
900
896
895
842
839
817
815
811
725
677
600
589
565
559
534
-
511
374
795
1,808
2,689
261
16
1,818
20,074
74,006
-
74,006
1,431
547
608
662
2,353
955
180
1,959
8,695
-
8,695		 Incoming
resources
£'000
430
127
68
61
59
59
52
52
46
45
43
41
122
38
37
37
36
33
33
33
31
31
38
30
32
25
25
22
22
21
21
19
-
19
14
30
66
99
10
46
67
781
2,901
-
2,901
53
333
1,433
190
403
479
561
514
3,966
-
3,966		 Resources
expended
£'000
(52)
(15)
(8)
(7)
(7)
(7)
(6)
(6)
(6)
(5)
(5)
(5)
(5)
(5)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(3)
(3)
(3)
(3)
(3)
(2)
(2)
-
(2)
(2)
(4)
(8)
(12)
(1)
(0)
(9)
(89)
(329)
-
(329)
(6)
(304)
(1,300)
(9)
(934)
(508)
(449)
(394)
(3,904)
-
(3,904)		 Transfers
£'000
(408)
(671)
(65)
(59)
(57)
(56)
(50)
(50)
(44)
(43)
(41)
(39)
(36)
(36)
(35)
(35)
(34)
(31)
(31)
(31)
(29)
(29)
(28)
(28)
(28)
(24)
(24)
(21)
(20)
(19)
(20)
(19)
551
(18)
(9)
(28)
(63)
(94)
(9)
(1)
(66)
(725)
(2,603)
-
(2,603)
-
-
0
45
974
262
-
274
1,555
-
1,555		 Gains/
(losses)
£'000
235
70
37
34
33
32
29
28
26
25
24
23
21
21
20
20
20
18
18
18
17
17
16
16
16
15
14
13
12
11
11
11
-
10
8
16
36
54
5
0
37
404
1,491
-
13,518
-
-
-
-
-
-
46
-
46
-
46		 At 31 July
2022
£'000
11,918
2,975
1,887
1,711
1,653
1,636
1,447
1,424
1,273
1,246
1,197
1,143
1,139
1,048
1,025
1,020
995
916
912
911
857
854
839
829
827
738
689
611
600
575
569
543
551
520
385
809
1,839
2,736
266
61
1,847
20,445
75,466
-
75,466
1,478
576
741
888
2,796
1,188
338
2,353
10,358
-
10,358

43

Pembroke College

Notes to the financial statements For the year ended 31 July 2023

Unrestricted Funds
Designated funds:
Private Placement Fund
Theology Fellowship
Physics Fellowship
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
ANALYSIS OF NET ASSETS BETWEEN FUNDS 202
Tangible fixed assets
Property investments
Other investments
Net current assets and other long term liabilities
Long term loan finance		 At 1 August
2021
£'000
14,019
529
527
524
491
16,090
10,562
-
(1,882)
24,770
(170)
24,600
107,301
0(Note 22)		 Incoming
resources
£'000
438
19
19
19
302
797
8,831
-
-
9,628
-
9,628
16,495		 Resources
expended
£'000
(7)
(1)
(1)
(5)
(33)
(47)
(10,929)
-
(1,514)
(12,490)
-
(12,490)
(16,723)
Unrestricted
Funds
£'000
41,564
-
21,314
251
(40,000)
23,129		 Transfers
£'000
(268)
-
-
(14)
(8)
(290)
1,338
-
-
1,048
-
1,048
-
Restricted
Funds
£'000
-
-
3,499
6,859
-
10,358		 Gains/
(losses)
£'000
179
-
-
7
4
190
155
-
-
345
-
345
1,882
Endowment
Funds
£'000
-
3,430
72,036
-
-
75,466		 At 31 July
2022
£'000
14,361
547
545
531
756
16,740
9,957
-
(3,396)
23,301
(170)
23,131
108,955
2022
Total
£'000
41,564
3,430
96,849
7,110
(40,000)
108,953

44