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2021-07-31-accounts

Nuffield College UNIVERSITY OF OXFORD ANNUAL REPORT AND FINANCIAL STATEMENTS Year ended 31 July 2021 Registered Charity Number l 137506

Nuffield College

Annual Report and Financial Statements

Contents

INDEX PAGE
Governing Body, Officers and Advisers 2 - 4
Report of the Governing Body 5 - 15
Auditor’s Report 16 - 19
Statement of Accounting Policies 20 - 24
Consolidated Statement of Financial Activities 25
Consolidated and College Balance Sheets 26
Consolidated Statement of Cash Flows 27
Notes to the Financial Statements 28 - 48

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Nuffield College Governing Body, Officers and Advisers

Year ended 31 July 2021

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 who served in office as Trustees during the year or subsequently are listed below.

Elected/Resigned/Retired (1) (2) (3) (4) (5)
Warden
Sir A W Dilnot ● ● ● ● ●
Official Fellows
N D de Graaf
R Duch Resigned 31/10/2020
G Evans ● ●
I Jewitt
J O Jonsson
M A Meyer
Professorial Fellows
T Abou-Chadi Elected 01/09/2021
K Adam Resigned 31/08/2021
B Ansell ●
R Breen ●
S Broadberry ●
E Bukodi
L Cluver
I Crawford
P Culpepper
J Dill
A Eggers Resigned 31/07/2021 ●
M Ellison ●
R M Fitzpatrick Retired 30/09/2021 ● ●
E Gonzalez Ocantos
J Green ●
R Kashyap ●

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Nuffield College

Governing Body, Officers and Advisers Year ended 31 July 2021

Elected/Resigned/Retired (1) (2) (3) (4) (5)
D S King ●
D Kirk
P Klemperer
C Laborde
H Low
C Mills
M Mills ●
C W S Monden
B Nielsen ●
B Petrongolo Elected 01/09/2020
K W S Roberts Retired 30/09/2020
D Rueda
D J Snidal Retired 30/09/2021
A Thompson
M Weidner Elected 01/01/2021
F Windmeijer ●
Supernumerary Fellows
E Kechagia-Ovseiko ● ● ●
T Moore ● ● ● ●
Research Fellows
S Bond ●

During the year the main activities of the Governing Body were carried out through five committees. The current membership of these committees is shown above for each Fellow.

Two additional committees, chaired by external non-trustees, advise the Governing Body. These are the Audit Committee and the Fellows’ Remuneration Review Committee.

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Nuffield College

Governing Body, Officers and Advisers Year ended 31 July 2021

COLLEGE SENIOR STAFF

The senior staff of the College to whom day to day management is delegated are as follows.

Andrew Dilnot Warden
Eleni Kechagia-Ovseiko Senior Tutor
David Walker Head of the Endowment Office
Tom Moore Bursar
Yanislava Moyse Head of Finance

COLLEGE ADVISERS

Investment managers

Oxford University Endowment Management Limited, King Charles House, Park End Street, Oxford, OX1 1JD

Investment property managers

Savills plc, 33 Margaret Street, London W1G 0JD meterhoch2! Hausverwaltungen GmbH, Schwarzbacher Str. 3, 10711 Berlin, Germany

Auditor

Critchleys Audit LLP, Beaver House, 23-38 Hythe Bridge Street, Oxford OX1 2EP

Bankers

Royal Bank of Scotland Group plc, 36 St Andrew Square, Edinburgh EH2 2YB J P Morgan, 1 Knightsbridge, London SW1X 7LX.

Solicitors

Knights plc, Midland House, West Way, Botley, Oxford OX2 0PH Old Square Chambers, 10-11 Bedford Row, London WC1R 4BU Pennington Manches Cooper LLP, 9400 Garsington Road, Oxford Business Park, Oxford OX4 2HN Roever Broenner Susat Mazars GmbH & Co. KG, Alt-Moabit 2, 10557 Berlin, Germany Withers LLP, 2 Old Bailey, London EC4M 7AN

Surveyors

Savills plc, 33 Margaret Street, London W1G 0JD Adkin, Orpwood House, School Road, Ardington, Wantage, Oxfordshire, OX12 8PQ

College address

New Road Oxford OX1 1NF

Registered Charity Number

1137506

Website

www.nuffield.ox.ac.uk

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Nuffield College Report of the Governing Body

Year ended 31 July 2021

The Members of the Governing Body present their Annual Report for the year ended 31 July 2021 under the Charities Act 2011, together with the audited financial statements for the year.

REFERENCE AND ADMINISTRATIVE INFORMATION

The Warden and Fellows of Nuffield College in the University of Oxford, which is known as Nuffield College (“the College”), is an eleemosynary chartered charitable corporation aggregate. It was founded by Viscount Nuffield under a Deed of Covenant and Trust dated 16 November 1937 and was granted a Royal Charter from Queen Elizabeth the Second on 18 April 1958. The corporation comprises the Warden and Fellows.

The names of all Members of the Governing Body at the date of this report and of those in office during the year, together with details of the senior staff and advisers of the College, are given on pages 2 to 4.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing documents

The College is governed by its Charter and Statutes dated 18 April 1958.

Governing Body

The Governing Body is constituted and regulated in accordance with the College Statutes, the terms of which are enforceable ultimately by the Visitor, who is the Master of the Rolls. The Governing Body is self-appointing, by election.

New members of the Governing Body are elected on the basis of academic distinction, or their ability to serve the College in other ways.

The Governing Body determines the ongoing strategic direction of the College and regulates its administration and the management of its finances and assets. It meets regularly under the chairmanship of the Warden.

Recruitment and training of Members of the Governing Body

New Members of the Governing Body are recruited by election and inducted into the workings of the College, including Governing Body policy and procedures.

Members of the Governing Body are made aware of Charity Commission guidance to trustees and may attend external trustee training and information courses to keep them informed on current issues in the sector and on regulatory requirements. Trustee training (delivered by Penningtons Manches) is organised by the Conference of Colleges on an annual basis and is open to all new Governing Body fellows.

Remuneration of Members of the Governing Body and Senior College Staff

Members of the Governing Body, who are primarily Fellows engaged in teaching and research, receive no remuneration or benefits from their trusteeship of the College. Those trustees who are also employees of the College receive remuneration for their work as employees of the College which is set in accordance with the advice of the College’s Fellows’ Remuneration Review Committee (FRRC). Where possible, remuneration is set in line with that awarded to the University’s academic staff. FRRC consists of a Chair plus three members, normally including at least two current Visiting Fellows; none of the Committee’s members are trustees and none are in receipt of remuneration from the College. The Committee provides independent scrutiny of proposals concerning any changes to pay or conditions that would benefit Fellows, by testing them against three key principles: legitimacy, affordability, and reasonableness.

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Nuffield College

Report of the Governing Body

Year ended 31 July 2021

Organisational management

The members of the Governing Body meet six times a year. The work of developing policies and monitoring their implementation is carried out by five principal committees:

The day-to-day running of the College is delegated to the senior staff listed on page 4 ( viz ., the Warden, Senior Tutor, Head of the Endowment Office, Bursar, and Head of Finance), and is supported by heads of the College’s administrative departments. The Governing Body is chaired by the Warden, who also chairs the College’s Investment Committee, Strategy and Resources Committee, Library Committee and Personnel and Domestic Committee. The Information Systems Committee is chaired by an IT Fellow (drawn from amongst the College’s Governing Body), who also has some responsibility for overseeing the relevant areas of the College’s IT activities.

In addition, there are two committees that assist the College to control risks related to governance and conflicts of interest: a Fellows’ Remuneration Review Committee (as described above) and an Audit Committee, which has an external (not a trustee or employee) chair and two further external members, and which advises Governing Body on the effectiveness of the financial and other internal control systems of the College.

Group structure and relationships

The College had one wholly owned non-charitable subsidiary: Nuffield Properties Ltd, which was dormant throughout the relevant period and also the previous period. Nuffield Properties Ltd was dissolved after the year end.

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.

OBJECTIVES AND ACTIVITIES

Charitable Objects and Aims

The College’s Objects as set out in its Statutes are to advance postgraduate education and research in the social sciences.

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

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Nuffield College

Report of the Governing Body

Year ended 31 July 2021

Activities and objectives of the College

The College’s activities are focused on furthering its stated objects and aims for the public benefit as set out above. In doing so, the College aims to achieve sustained levels of excellence, not just in respect of its academic activities, but also in respect of the operations which support and enable those activities to happen.

To achieve its objects and aims, the College places special emphasis on:

The College will assess the success of these strategies with reference amongst other things to:

Policy on and provision of bursary support

The College admits only graduate students. It awards scholarships to cover or partially cover fees and maintenance costs. In 2020/21, College funds provided £1,010k towards such costs, which was 11% higher than the previous year (2020: £906k).

Statement on fundraising activities

Through its Development Office, the College builds relationships with alumni and other friends of the institution in order to foster a culture of giving. Potential donors are invited to give through a variety of fundraising tools, including dedicated alumni events and communications, face-to-face major gift solicitation, as well as an annual fund programme (direct mail appeals and telethons). Telethons are conducted in conjunction with Buffalo Fundraising Consultants. The College follows and has complied in full with the Fundraising Regulator’s “Code of Practice in Fundraising” and has committed to the Regulator’s “Fundraising Promise”. No complaints have been received about fundraising activities undertaken by the College or any of its commercial participants.

ACHIEVEMENTS AND PERFORMANCE

Although the period under review was heavily disrupted by COVID-19, the College’s operations were for the most part able to continue successfully, albeit with additional safety measures in place (in line with Government and University guidance).

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Nuffield College

Report of the Governing Body

Year ended 31 July 2021

Some highlights of the College’s activities in 2020/21 (which include examples of awards, public engagement and outreach activities, research, and equality and diversity initiatives) are set out below.

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Nuffield College

Report of the Governing Body

Year ended 31 July 2021

its implications for leading City interests and firms. Freshfields subsequently took the decision to sponsor independent postdoctoral research into how slavery actually functioned, where the profits from slavery accrued, and the ways in which slavery was experienced – financially, politically and culturally – within the City of London and Dr Hunter Harris, from the University of Michigan, has since been elected as a Research Fellow at Nuffield to lead this project. Andrew was also awarded a Commander of the British Empire (CBE) for services to research in the Queen’s New Year’s Honours list for 2021.

A full record of the College’s academic activities for the year can be found in the relevant version of its Annual Report.

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Report of the Governing Body

Nuffield College

Year ended 31 July 2021

FINANCIAL REVIEW

Income

Following the trend from the previous financial year, which continues to be in line with the prevailing economic environment, the College’s total income for the year decreased by 1% to £12,245k in 2020/21 (2020: £12,348k).

Investment income, which is the largest source of income to the College, increased by 4% to £10,450k (2020: £10,092k). This is mainly due to the reported increase in equity dividends and a smaller increase in rent received from property assets.

Income from charitable activities of £1,387k was 23% lower than the previous year (2020: £1,810k), and consisted of student fee income of £218k (an increase of 7%), other OfS support of £204k, other academic and mainly research grant income of £614k (a decrease of 39%), and College residential income of £351k (a decrease of 19%).

As a whole, the level of charitable activities remained below previous years. In particular, due to the pandemic related restrictions, the College experienced a reduction in residential income and in income associated with both research grants and research centre activities.

The College received a government grant under the Coronavirus Job Retention Scheme of £51k (2020: £176k).

Income from donations amounted to £357k (2020: £270k) and was composed mainly of endowment donations (£354k) to the Graduate Scholarship funds.

Expenditure

The College’s total expenditure increased by 5% to £12,809k (2020: £12,155k) and expenditure on charitable activities of £9,264k was 2% higher than the previous year (£9,104k). The increase in charitable operating costs was mainly attributable to additional IT related expenditure on audio-visual equipment and a WiFi replacement project.

Included in the charitable expenditure is the movement in the pension provision, which resulted in a net reduction of the total costs of £134k in the current year compared to the corresponding net decrease of £323k reported in the previous financial year. Details of the pension provision for the current and the previous year are included in note 23 to the financial statements.

The cost of generating funds rose by 16% to £3,545k (2020: £3,051k), of which investment management costs increased by 17% to £3,309k (2020: £2,832k) and fundraising costs of £236k were 8% higher than the previous year (2020: £219k). The investment management costs include additional costs related to College’s investment development activities, in particular expenditure related to the master-planning for the College’s West End Sites.

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Nuffield College

Report of the Governing Body

Year ended 31 July 2021

Result for the year

The College’s total consolidated funds increased by £42,350k in the year to £305,367k as at 31 July 2021 (2020: £263,017k), which represents an increase of 16%. The increase is mostly attributable to the reported increase in investment asset values and the corresponding investment gains of £44,302k (2020: loss of £4,492k). The balances of the three main funds are shown below as at 31 July 2021 (including comparatives).

Investments

The total group investments, which comprise securities, property investments and an investment in a Joint Venture, increased by 15% and amounted to £314,533k (2020: £274,675k) at the year end.

The total net investment return increased significantly to 18% (2020: 0.7%), which was partly due to the recovery of the global equity markets from the sharp decline in the previous year and some increases in property valuations as at 31 July 2021.

The value of the bank loan, measured at amortised cost, was £31,920k and the interest payable for the year was 1.12% (LIBOR plus 1%). After taking into account the bank loan and the net investment current assets of £4,977k, the total consolidated net investment assets stood at £287,590k as at 31 July 2021 (2020: £246,922k).

Reserves policy

The College’s reserves policy is to maintain sufficient free reserves to meet short-term financial obligations in the event of an unexpected revenue shortfall.

The College’s general unrestricted funds at the year end amounted to £5,476k (2020: £3,739k), excluding the net book value of fixed assets of £11,286k (2020: £11,264k).

In accordance with FRS 102, a pension reserve of £1,465k (2020: £1,599k) is included within unrestricted funds representing the defined benefit pension scheme liability.

Designated reserves at the year end amounted to £2,480k (2020: £2,691k), which included funds of £55k (2020: £55k) for specific research projects to be spent within ten years of the initial award and an academic fund of £2,425k (2020: £2,637k), set up in March 2014, for the purpose of advancing postgraduate education and research.

The total return allocated to income from the College’s endowment funds provides, on average, about 80% of the total funds required to support the College’s charitable activities.

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Nuffield College Report of the Governing Body

Year ended 31 July 2021

In the event of a significant decline in operating income, the current level of general unrestricted reserves would be sufficient to cover 20% of the expected charitable expenditure for two years.

Liquidity

The College maintains a level of liquidity (in highly liquid assets), that ensures there is sufficient cash available to meet expected future capital commitments, cover the next two years’ transfer from endowment funds to unrestricted funds under the approved endowment expenditure rule and cope with unexpected cash requirements.

Investment policy, objectives and performance

The College’s endowment makes a major contribution to funding its activities. The Governing Body intends that this should continue for the foreseeable future.

The College seeks to generate a return in excess of inflation that enables it to maintain the value of the endowment in real terms and to make a sustainable contribution to funding expenditure. As a long-term investor, the College recognises the significance of compounding of returns and of inflation, the consequences of permanent or longlasting loss of capital value, and the general risk-and-return characteristics of different asset classes. The College tolerates managed volatility. It aims to maintain sufficient liquidity to meet its liabilities, to protect against permanent loss of capital value, and to enable it to benefit from investment opportunities. The College requires there to be sound arrangements for custody of its investment assets and for dealing with credit, counterparty, and currency risks. The College holds a diversified portfolio of assets, and the balance among classes may vary from time to time. The College may seek to benefit from investing in risk assets globally, and it may pursue a range of approaches to generating returns. Mindful of fiduciary duties, the Governing Body maintains that consideration of environmental, social, and governance (ESG) factors should be fully integrated into the College’s investment activities. This encompasses conservation of the College’s reputation, attention to relevant moral considerations, and awareness of focus on ESG factors in the investment world and in society generally.

The total net investment return for the year was 18% (2020: 0.7%). The College’s Statutes allow it to invest permanent endowments to maximise total return and to make available for expenditure each year an appropriate proportion of the unapplied total return. The total return accounting basis uses a long-term spending rate combined with a smoothing rule, which adjusts spending gradually in accordance with changes in the endowment’s market value after costs. The amount released is calculated as a weighted sum of the prior year contribution adjusted for inflation (80% weight) and the amount that would have been contributed using 4.3% of the previous year’s brought forward fund values (20% weight). The equivalent of 3.91% of the opening balances of the relevant funds, plus costs, was extracted as income in the year (2020: 3.57%).

Risk management

Policies and procedures within the College are reviewed by the relevant College Committee, and each key Committee maintains its own Risk Register. Financial risks are assessed by the Strategy and Resources and Audit Committees, and investment risks are monitored by the Investment Committee. In addition, the Bursar and heads of the College departments meet regularly to review health and safety issues. When it is not able to address risk issues using internal resources, the College takes advice from experts external to the College with specialist knowledge. Training courses and other forms of career development are promoted to members of staff to enhance their skills in risk-related areas.

Governance & Compliance

Governance & Compliance
Key areas of risk Managing strategies
Lack of strategy / skills Strategy and Resources Committee; budget-setting and
quarterly forecasting; recruitment and induction
processes; appointment of external consultants with
relevant expertise as appropriate.
Conflict of interest / non-charitable activities Fellows Remuneration Review Committee; Conflict of
Interest policy; recruitment and induction processes.

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Nuffield College

Report of the Governing Body

Year ended 31 July 2021

Regulatory reporting requirements Allocate roles and responsibilities; training and induction;
regular departmental reviews.

Academic

Academic
Key areas of risk Managing strategies
Failure to recruit and retain world class academic staff Strategic planning; competitive salaries and benefits;
appointment procedures; collaboration with University.
Failure to attract and admit top quality graduate students Admissions planning and processes; scholarships;
quality of student experience; collaboration with
University; low overall intake.

Financial

Financial
Key areas of risk Managing strategies
Fraud; budgetary control Audit Committee; internal controls; segregation of duties;
regular reporting.
Investment policy Investment Committee (inc. external members and
expert advisors); regular reporting; diversification of
holdings; external fund managers.

Operational

Key areas of risk Managing strategies
Disruption associated with COVID-19 Residual safety measures; business continuity plans;
additional risk management procedures for specific
events; regular reviews and consultation with College
members.
Loss of key staff Systems, policies, and processes; succession planning;
regular departmental reviews; contingency planning.
Recruitment of support staff Review terms and conditions; collaboration with
University and other colleges; casual appointments.
Information security; data loss Information Systems Committee; back-up arrangements;
regular reviews; collaboration with University; business
continuity planning.
Health and safety; employment issues Recruitment, induction, and training; management
processes; monitoring and reporting; external controls.

Going concern

In assessing the College’s ability to continue to operate as a going concern, the Trustees have considered the following three key areas:

Bank loan covenant compliance . A breach of the current bank loan covenants would occur in the event that the College’s net tangible assets fell by 58% of the values reported as at 31 July 2021, the likelihood of which was assessed as low.

Liquidity risk. The College’s investment policy is to maintain a sufficient level of liquidity (in highly liquid assets) to meet planned future capital commitments and cover the next two years’ transfer from the endowment to unrestricted funds under the approved endowment expenditure rule. On this basis, the likelihood of the College not being able to meet its obligations as they fall due was assessed as low.

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Nuffield College

Report of the Governing Body

Year ended 31 July 2021

Loss of income . The total return allocated to income from the College’s endowment provides approximately 80% of the total funds required to support the College’s charitable activities. The College has adopted a total return approach to its investments and has sufficient levels of accumulated unapplied total return (note 14). Therefore, although short-term adverse market conditions would be reflected in the accumulation of investment return and endowment fund balances, the amount of total return allocated to income would not be subject to the investment markets’ volatility and is within the control of the Governing Body. Any significant decline in the College’s operating income, which covers approximately 20% of the College’s operating expenditure, could be funded from the general unrestricted reserves.

Based on the reported financial performance and the assessment of the principal risks, the Trustees have a reasonable expectation that the College has adequate resources to continue in operation and meet its liabilities as they fall due for at least 12 months from the approval of the financial statements. The Trustees, therefore, continue to adopt the going concern basis of accounting in preparing the annual financial statements.

FUTURE PLANS

During the financial year 2021/22, the College plans to:

More generally, the College’s future plans are:

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Nuffield College

Report of the Governing Body

Year ended 31 July 2021

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 income or expenditure 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 1 December 2021 and signed on its behalf by:

Sir Andrew Dilnot

Warden

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Nuffield College

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GOVERNING BODY OF NUFFIELD COLLEGE

Opinion

We have audited the financial statements of Nuffield College (the “Charity”) for the year ended 31 July 2021 which comprise the Statement of Accounting Policies, the Consolidated Statement of Financial Activities, the Consolidated and College Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements. 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 Charity 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 Members of the Governing Body’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’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other information

The Members of the Governing Body are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our 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.

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

We have nothing to report in this regard.

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Nuffield College

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GOVERNING BODY OF NUFFIELD COLLEGE

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 Act 2011 requires us to report to you if, in our opinion:

Responsibilities of the Members of the Governing Body

As explained more fully in the Statement of Accounting and Reporting Responsibilities [set out on page 14], the Members of the Governing Body are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they 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 Members of the Governing Body are responsible for assessing the 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 Members of the Governing Body 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 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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Nuffield College

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GOVERNING BODY OF NUFFIELD COLLEGE

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

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

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

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

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

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

This description forms part of our auditor’s report.

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Nuffield College

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GOVERNING BODY OF NUFFIELD COLLEGE

Use of our report

This report is made solely to the College’s Governing Body, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Members of the Governing Body 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 College’s Governing Body as a body, for our audit work, for this report, or for the opinions we have formed.

Critchleys Audit LLP

Statutory Auditor Oxford

Date: 2 December 2021

Critchleys Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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Nuffield College Statement of Accounting Policies Year ended 31 July 2021

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 Statement of Cash Flows for the College and its interest in the OxWED joint venture, under the equity method of accounting. No separate SOFA has been presented for the College alone as currently permitted by the Charity Commission on a concessionary basis for the filing of consolidated financial statements.

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 financial statements have been prepared on a going concern basis and 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 College is a member of the Universities Superannuation Scheme (USS) and University of Oxford Staff Pension Scheme (OSPS). These are multi-employer pension schemes both of which are in deficit. The College has recognised a provision for its commitments under the agreed deficit reduction plans for each scheme. In calculating these provisions the College has made a number of assumptions which are disclosed in note 23.

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.

With respect to the next financial year, the most significant areas of uncertainty that affect the carrying value of assets held by the College are the level of investment return and the performance of investment markets.

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.

20

Nuffield College Statement of Accounting Policies Year ended 31 July 2021

a. Income from fees, Office for Students support and other charges for services

Fees receivable, less any scholarships, bursaries or other allowances granted from the College unrestricted funds, 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. In case of donations, entitlement usually arises immediately on its receipt. 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.

Research grants income is usually conditional on delivery of specified research and incurring pre-determined expenditure, therefore performance condition is delivery of particular level of service, measured by proportion of costs incurred.

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 when the right to receive payment 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.

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 costs 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.

21

Nuffield College Statement of Accounting Policies Year ended 31 July 2021

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 £25,000 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 is charged to the SOFA as incurred.

8. Depreciation

Depreciation is provided to write off the cost of all relevant 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
Leasehold properties 50 years or period of lease if shorter
Building improvements 25 years
Equipment 3 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.

22

Nuffield College Statement of Accounting Policies Year ended 31 July 2021

9. 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.

Other unquoted investments are valued using primary valuation techniques such as earnings multiples, recent transactions and net assets where reliable estimates can be made – otherwise at cost less any impairment.

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.

10. Other financial instruments

a. Derivatives

Derivative financial instruments are initially measured at fair value on the date the contract is entered into and are subsequently measured at fair value. Changes in fair value are credited or charged to the income or expenditure section of the SOFA. Hedge accounting is not currently applied to derivatives.

b. 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.

c. Debtors and creditors

Debtors and creditors receivable or payable within one year of the reporting date are carried at their transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest.

11. 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.

12. 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.

23

Nuffield College Statement of Accounting Policies Year ended 31 July 2021

13. 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 be retained for investment or released to income at the discretion of the Governing Body.

14. Fund accounting

The total funds of the College 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 donors have specified that the funds are to be used for particular purposes of the College. They consist of either gifts where the donor has specified that both the capital and any income arising must be used for the purposes given or the income on gifts where the donor has required or permitted the capital to be maintained and with the intention that the income will be used for specific purposes within the College’s objects.

Permanent endowment funds arise where donors specify that the funds are to 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.

15. Pension costs

The costs of retirement benefits provided to employees of the College through two multi-employer defined pension schemes are accounted for as if these were defined contribution schemes as information is not available to use defined benefit accounting in accordance with the requirements of FRS 102. The College's contributions to these schemes are recognised as a liability and an expense in the period in which the salaries to which the contributions relate are payable.

In addition, a liability is recognised at the balance sheet date for the discounted value of the expected future contribution payments under the agreements with these multi-employer schemes to fund the past service deficits.

24

Nuffield College Consolidated Statement of Financial Activities For the year ended 31 July 2021

Unrestricted
Funds
Notes
£'000
INCOME AND ENDOWMENTS FROM:
Charitable activities:
1
Teaching, research and residential
1,387
Other Trading Income
3
0
Donations and legacies
2
0
Investments
Investment income
4
71
Total return allocated to income
14
8,568
Other income (CJRS)
51
Total income
10,077
EXPENDITURE ON:
5
Charitable activities:
Teaching, research and residential
8,159
Generating funds:
Fundraising
236
Trading expenditure
0
Investment management costs (incl. Loan interest)
0
Total Expenditure
8,395
Net Income/(Expenditure) before gains
1,682
Net gains/(losses) on investments
10, 11
0
Net Income/(Expenditure)
1,682
Group share of joint venture's profit/(loss)
12
0
Transfers between funds
19
0
Other recognised gains/losses
Gains/(losses) on revaluation of fixed assets
0
Actuarial gains/(losses) on defined benefit pension schemes
0
Net movement in funds for the year
1,682
Fund balances brought forward
19
16,095
Funds carried forward at 31 July
17,777		 Unrestricted
Funds
Notes
£'000
INCOME AND ENDOWMENTS FROM:
Charitable activities:
1
Teaching, research and residential
1,387
Other Trading Income
3
0
Donations and legacies
2
0
Investments
Investment income
4
71
Total return allocated to income
14
8,568
Other income (CJRS)
51
Total income
10,077
EXPENDITURE ON:
5
Charitable activities:
Teaching, research and residential
8,159
Generating funds:
Fundraising
236
Trading expenditure
0
Investment management costs (incl. Loan interest)
0
Total Expenditure
8,395
Net Income/(Expenditure) before gains
1,682
Net gains/(losses) on investments
10, 11
0
Net Income/(Expenditure)
1,682
Group share of joint venture's profit/(loss)
12
0
Transfers between funds
19
0
Other recognised gains/losses
Gains/(losses) on revaluation of fixed assets
0
Actuarial gains/(losses) on defined benefit pension schemes
0
Net movement in funds for the year
1,682
Fund balances brought forward
19
16,095
Funds carried forward at 31 July
17,777		 Restricted
Funds
£'000
0
0
3
278
431
0		 Endowed
Funds
£'000
0
0
354
10,101
(8,999)
0		 2021
Total
£'000
1,387
0
357
10,450
0
51		 2020
Total
£'000
1,810
0
270
10,092
0
176
10,077
8,159
236
0
0		 712
1,105
0
0
134		 1,456
0
0
0
3,175		 12,245
9,264
236
0
3,309		 12,348
9,104
219
0
2,832
8,395 1,239 3,175 12,809 12,155
1,682 (527) (1,719) (564) 193
1,431 42,871 44,302 (4,492)
1,682 904 41,152 43,738 (4,299)
0
0
0
0		 0
504
0
0		 (1,388)
(504)
0
0		 (1,388)
0
0
0		 (762)
0
0
0
1,682
16,095		 1,408
7,763		 39,260
239,159		 42,350
263,017		 (5,061)
268,078
17,777 9,171 278,419 305,367 263,017

25

Nuffield College Consolidated and College Balance Sheets As at 31 July 2021

Notes
FIXED ASSETS
Tangible assets
9
Heritage assets
Property investments
10
Other Investments
11
Investment in joint venture
12
Total Fixed Assets
CURRENT ASSETS
Stocks
Debtors
15
Investments
27
Cash at bank and in hand
Total Current Assets
LIABILITIES
Creditors: Amounts falling due within one year
16
NET CURRENT ASSETS/(LIABILITIES)
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: falling due after more than one year
17
Provisions for liabilities and charges
18
Defined benefit pension scheme liability
23
TOTAL NET ASSETS/(LIABILITIES)
FUNDS OF THE COLLEGE
19
Endowment funds
Restricted funds
Unrestricted funds
Designated funds
General funds
Revaluation reserve
Pension reserve
23
NET ASSETS/(LIABILITIES) BEFORE PENSION ASSET
OR LIABILITY		 2021
Group
£'000
11,286
0
125,918
181,173
7,442
325,819
65
5,684
3,031
6,435
15,215
2,282
12,933
338,752
31,920
0
306,832
1,465
305,367
278,419
9,171
13,766
5,476
0
(1,465)
305,367		 2020
Group
£'000
11,264
0
111,524
154,821
8,330
285,939
67
4,743
6,024
1,085
11,919
1,342
10,577
296,516
31,900
0
264,616
1,599
263,017
239,159
7,763
13,955
3,739
0
(1,599)
263,017		 2021
College
£'000
11,286
0
125,918
192,433
329,637
65
5,684
3,031
6,435
15,215
2,282
12,933
342,570
31,920
0
310,650
1,465
309,185
282,237
9,171
13,766
5,476
0
(1,465)
309,185		 2020
College
£'000
11,264
0
111,524
165,581
288,369
67
4,743
6,024
1,085
11,919
1,342
10,577
298,946
31,900
0
267,046
1,599
265,447
241,589
7,763
13,955
3,739
0
(1,599)
265,447

The financial statements were approved and authorised for issue by the Governing Body of Nuffield College on 1 December 2021

Warden: Sir A W Dilnot

Bursar: Mr T Moore

26

Nuffield College Consolidated Statement of Cash Flows For the year ended 31 July 2021

Notes
Net cash provided by (used in) operating activities
26
Cash flows from investing activities
Dividends, interest and rents from investments
Proceeds from the sale of property, plant and equipment
Purchase of property, plant and equipment
Proceeds from sale of investments
Purchase of investments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Interest paid
Receipt of endowment
Net cash provided by (used in) financing activities
Change in cash and cash equivalents in the reporting period
27
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the
reporting period
Change in cash and cash equivalents due to
exchange rate movements		 2021
£'000
(9,723)		 2020
£'000
(11,644)
9,355
1,224
(1,521)
3,916
(1,394)		 9,607
601
(1,505)
60,592
(84,754)
11,580 (15,459)
(359)
351		 (576)
270
(8) (306)
1,849 (27,409)
8,270
(88)		 35,973
(294)
10,031 8,270

27

Nuffield College Notes to the financial statements For the year ended 31 July 2021

1 INCOME FROM CHARITABLE ACTIVITIES

Teaching, Research and Residential
Unrestricted funds
Tuition fees - UK and EU students
Tuition fees - Overseas students
Other fees
Other OfS support
Other academic income
College residential income
Total Teaching, Research and Residential
Total income from charitable activities		 2021
£'000
114
104
0
204
614
351
1,387
1,387
1,387		 2020
£'000
100
92
11
171
1,000
436
1,810
1,810
1,810

The above analysis includes £204k received from Oxford University from publicly accountable funds under the CFF Scheme (2020: £171k).

2 DONATIONS AND LEGACIES

Donations and Legacies
Unrestricted funds
Restricted funds
Endowed funds
INCOME FROM OTHER TRADING ACTIVITIES
Subsidiary company trading income
Other trading income
INVESTMENT INCOME
Unrestricted funds
Interest on fixed term deposits and cash
Other investment income
Bank interest
Restricted funds
Commercial rent
Other property income
Equity dividends
Interest on fixed term deposits and cash
Other interest
Endowed funds
Agricultural rent
Commercial rent
Other property income
Equity dividends
Interest on fixed term deposits and cash
Other investment income
Total Investment income		 2021
£'000
0
3
354
357
2021
£'000
0
0
~~0~~
2021
£'000
7
64
0
71
215
0
63
0
0
278
48
4,912
31
4,248
862
0
10,101
10,450		 2020
£'000
0
2
268
270
2020
£'000
0
0
~~0~~
2020
£'000
24
65
0
89
214
0
62
0
0
276
48
4,798
91
3,888
902
0
9,727
10,092

3 INCOME FROM OTHER TRADING ACTIVITIES

28

Nuffield College Notes to the financial statements For the year ended 31 July 2021

5 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
Investment management costs
Other direct costs allocated to:
Fundraising
Investment management costs
Support and governance costs allocated to:
Fundraising
Investment management costs
Total expenditure on raising funds
Total expenditure		 2021
£'000
4,513
3,334
1,417
9,264
179
124
48
3,185
9
0
3,545
12,809		 2020
£'000
4,302
3,739
1,063
9,104
167
115
44
2,717
8
0
3,051
12,155

The comparative year's (2020) resources expended of £12,155k represented £8,166k from unrestricted funds, £1,266k from restricted funds and £2,723k 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.

The teaching and research costs include College Contribution payable of £235k (2020: £204k).

6 ANALYSIS OF SUPPORT AND GOVERNANCE COSTS

Financial administration
Domestic administration
Human resources
IT
Depreciation
Loss/(profit) on fixed assets
Other finance charges
Governance costs
Financial administration
Domestic administration
Human resources
IT
Depreciation
Loss/(profit) on fixed assets
Other finance charges
Governance costs		 Generating
Funds
£'000
3
1
1
4
0
0
0
0
9
Generating
Funds
£'000
3
2
1
2
0
0
0
0
8		 Teaching
and
Research
£'000
312
185
138
473
371
(96)
15
19		 Public
Worship
£'000
0
0
0
0
0
0
0
0
0
Public
Worship
£'000
0
0
0
0
0
0
0
0
0		 Heritage
£'000
0
0
0
0
0
0
0
0
0
Heritage
£'000
0
0
0
0
0
0
0
0
0		 2021
Total
£'000
315
186
139
477
371
(96)
15
19
1,417 1,426
Teaching
and
Research
£'000
305
196
100
301
354
(278)
66
19		 2020
Total
£'000
308
198
101
303
354
(278)
66
19
1,063 1,071

29

Nuffield College Notes to the financial statements For the year ended 31 July 2021

The following costs are attributed on a per capita basis: Finance and administration and human resources costs Depreciation costs IT costs

Governance costs comprise:
Auditor's remuneration - audit services
Other governance costs		 2021
£'000
16
3
19		 2020
£'000
16
3
19

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.

7 GRANTS AND AWARDS

During the year the College funded research grants and bursaries to students from its restricted and unrestricted funds as follows:

Unrestricted funds
Grants to individuals:
Scholarships, prizes and grants
Bursaries and hardship awards
Grants to other institutions
Total unrestricted
Restricted funds
Grants to individuals:
Scholarships, prizes and grants
Total restricted
Total grants and awards		 2021
£'000
894
22
0
916
94
94
1,010		 2020
£'000
872
2
0
874
32
32
906

The above costs are included within the charitable expenditure on Teaching, research and residential. Grants to other institutions comprise donations to other charitable organisations.

8 STAFF COSTS

The aggregate staff costs for the year were as follows.
Salaries and wages
Social security costs
Pension costs:
Pension contributions
Staff costs related to pension liability		 2021
£'000
4,577
424
737
(145)
5,593		 2020
£'000
4,597
429
680
(380)
5,326

Key management remuneration

The total remuneration paid to key management was £591k (2020: £582k).

Key management are considered to be the Warden, Senior Tutor, Head of Endowment Office, Bursar and Head of Finance.

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 employed College Trustees during the year was as follows:
University Lecturers
Other teaching and research
Other
Total		 2021
37
38
4
14
93
7
31
3
41		 2020
37
39
4
14
94
8
29
3
40

30

Nuffield College Notes to the financial statements For the year ended 31 July 2021

The College also engages temporary staff and agency workers who are not on the College payroll.

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 are 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) fell within the following bands was:


pension contributions) fell within the following bands was:
£60,001-£70,000
£70,001-£80,000
£80,001-£90,000
£90,001-£100,001
The number of the above employees with retirement benefits accruing was as follows:
In defined benefits schemes		 2021
1
1
0
2
4		 2020
0
1
1
0
2

Redundancy and termination payments are accounted for in the period in which the payments were made. During the current financial year, redundancy and termination payments amounted to £nil (2020: £nil). These costs were charged to unrestricted funds.

TANGIBLE FIXED ASSETS
Group and College
Cost
At start of year
Additions
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		 Leasehold
land and
buildings
£'000
2,987
0
(160)
2,827
821
37
0
0
858
1,969
2,166		 Freehold
land and
buildings
£'000
13,228
1,521
(968)		 Plant and
machinery
£'000
0
0
0
0
0
0
0
0
0
0
0		 Fixtures,
fittings and
equipment
£'000
231
0
0
231
213
18
0
0
231
0
18		 Total
£'000
16,446
1,521
(1,128)
13,781 16,839
4,148
316
0
0		 5,182
371
0
0
4,464 5,553
9,317 11,286
9,080 11,264

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.

31

Nuffield College Notes to the financial statements For the year ended 31 July 2021

10 PROPERTY INVESTMENTS

PROPERTY INVESTMENTS
Group and College
Valuation at start of year
Additions and improvements at cost
Disposals
Revaluation gains/(losses) in the year
Valuation at end of year		 Agricultural Commercial
£'000
£'000
7,020
104,504
0
499
0
(3,286)
13,825
3,356
20,845
105,073		 Other
£'000
0
0
0
0
0		 2021
Total
£'000
111,524
499
(3,286)
17,181
125,918		 2020
Total
£'000
107,485
3,468
0
571
105,073 111,524

The College directly invests in a substantial portfolio of commercial property and one agricultural holding. All the property is held in the United Kingdom except for three assets in Berlin, Germany.

A formal valuation of the agricultural property in Liverpool was prepared by Simon P Alden MRICS FAAV of Adkin as at 31 July 2021.

Formal valuations for the majority of the commercial properties were prepared as at 31 July 2021 by their respective managing agents: by Nicholas F Rees MRICS of Savills for UK property, Volker Zwing of Meterhoch2! for Berlin and Simon P Alden MRICS FAAV of Adkin for Nuffield Estate.

Prior year comparatives of the analysis between Agricultural and Commercial properties are shown in note 33 (b).

11 OTHER INVESTMENTS

All investments are held at fair value.

Group investments
Valuation at start of year
New money invested
Amounts withdrawn
(Decrease)/increase in value of investments
Group investments at end of year
Loan to Joint Venture (note 12)
College investments at end of year
Group investments comprise:
Equity investments
Global multi-asset funds
Property funds
Fixed interest stocks
Alternative and other investments
Fixed term deposits and cash
Total group investments		 Held outside
Held in
the UK
the UK
£'000
£'000
0
0
139,206
16,023
13
0
18,569
301
5,135
1,361
565
0
163,488
17,685		 2021
Total
£'000
0
155,229
13
18,870
6,496
565		 Held outside
the UK
£'000
0
111,053
54
18,319
5,377
782
135,585		 2021
£'000
154,821
369
(1,138)
27,121
181,173
11,260
192,433
Held in
the UK
£'000
0
17,195
0
301
1,361
379
19,236		 2020
£'000
166,157
81,315
(87,588)
(5,063)
154,821
10,760
165,581
2020
Total
£'000
0
128,248
54
18,620
6,738
1,161
181,173 154,821

32

Nuffield College Notes to the financial statements For the year ended 31 July 2021

12 INVESTMENT IN JOINT VENTURE

Oxford West End Development Limited (OxWED) was incorporated in January 2016 as a joint venture between Nuffield College and Oxford City Council. Nuffield College holds a 50% share of the company. The objectives of the Joint Venture are aligned with Nuffield College’s broader aim of promoting regeneration in the West End.

Nuffield College provided a loan to the joint venture of £6,600k for land purchase and working capital in 2015/16, plus an additional loan for land purchase of £4,160k in 2018/19, and a further loan of £500k in 2020/21. Interest is charged at 6.5%. Interest income of £3,437k was outstanding at 31 July 2021, in 2019/20 the comparative figure was £2,575k (note 15).

Nuffield’s interest in the joint venture is measured using the equity method of accounting in the consolidated financial statements.

Nuffield’s share of the net assets of OxWED is included in the consolidated balance sheet and the net share of profit/(loss) is shown in the consolidated SoFA, and calculated as follows:

Members' interest
Capital classified as liability
Other reserves classified as equity
Members' interest as at 31 July 2021		 OxWED
Total
£000
£000
£000
22,520
11,260
11,260
(7,636)
(3,818)
(3,818)
14,884
7,442
7,442
Nuffield
College
share 50%
As at 31 July 2021
Oxford
City
Council
share 50%		 OxWED
Total
£000
£000
£000
22,520
11,260
11,260
(7,636)
(3,818)
(3,818)
14,884
7,442
7,442
Nuffield
College
share 50%
As at 31 July 2021
Oxford
City
Council
share 50%
7,442
Capital classified as liability
Other reserves classified as equity
Members' interest as at 31 July 2020		 OxWED
Total
£000
£000
£000
21,520
10,760
10,760
(4,860)
(2,430)
(2,430)
16,660
8,330
8,330
Nuffield
College
share 50%
Oxford
City
Council
share 50%
As at 31 July 2020		 OxWED
Total
£000
£000
£000
21,520
10,760
10,760
(4,860)
(2,430)
(2,430)
16,660
8,330
8,330
Nuffield
College
share 50%
Oxford
City
Council
share 50%
As at 31 July 2020
8,330

33

Nuffield College Notes to the financial statements For the year ended 31 July 2021

12 INVESTMENT IN JOINT VENTURE - continued

OxWED

OxWED OxWED
Profit and Loss account for the year ended 31 July 2021
2021 2020
£000 £'000
Income 390 789
Expenditure (1,494) (714)
Operating Surplus/(Loss) (1,104) 75
Interest charge (1,671) (1,600)
Loss from Continuing operations (2,775) (1,525)
Total Comprehensive Income & Expenditure Loss (2,775) (1,525)
Balance Sheet 2021 2020
£000 £'000
Fixed assets 0 0
Stocks 21,342 21,342
Debtors 196 22
Cash at bank and in hand 475 592
Current Liabilities (7,129) (5,296)
Net assets attributable to members 14,884 16,660

34

Nuffield College Notes to the financial statements For the year ended 31 July 2021

13 PARENT AND SUBSIDIARY UNDERTAKINGS

The College holds 100% of the issued share capital in Nuffield Properties Limited, which was dormant in the current and previous reporting periods.

14 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 31 July 2013. The investment return to be applied as income is calculated as a weighted average of the prior year contribution adjusted for inflation (80% weight) and the amount which would have been contributed using 4.30% of the previous year's brought forward fund values (20% weight). The application of the above rule equates to a drawdown rate of 3.91% (2020: 3.57%) of the opening balances of the relevant funds. The preserved (frozen) value of the invested endowment capital represents its open market value in 2003 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
Less: Loan interest payable
Other transfers
Net profit/(loss) in relation to joint venture
Total
Unapplied total return allocated to income in the reporting period
Expendable endowments transferred to income
Net movements in reporting period
At end of the reporting period:
Gift component of the permanent endowment
Unapplied total return
Expendable endowment
Total Endowments		 Unapplied
Trust for
Total
Investment
Return
Total
£'000
£'000
£'000
Permanent Endowment		 Unapplied
Trust for
Total
Investment
Return
Total
£'000
£'000
£'000
Permanent Endowment		 Unapplied
Trust for
Total
Investment
Return
Total
£'000
£'000
£'000
Permanent Endowment		 Expendable
Total
Endowment Endowments
£'000
£'000		 Expendable
Total
Endowment Endowments
£'000
£'000
71,940
0
0
71,940
354
0
0
0
0
0
0
354
0
0
0
354
72,294
0
0		 0
100,945
0		 71,940
100,945
0
172,885
354
6,681
29,771
(1,612)
(257)
(504)
0
34,433
(3,484)
0
(3,484)
30,949
72,294
131,540
0		 0
0
66,274
66,274
0
3,420
13,100
(1,204)
(102)
0
(1,388)
13,826
0
(5,515)
(5,515)
8,311
0
0
74,585		 71,940
100,945
66,274
100,945
0
6,681
29,771
(1,612)
(257)
(504)
0		 239,159
354
10,101
42,871
(2,816)
(359)
(504)
(1,388)
34,079
(3,484)
0		 48,259
(3,484)
(5,515)
(3,484) (8,999)
30,595
0
131,540
0		 39,260
72,294
131,540
74,585
72,294 131,540 203,834 74,585 278,419

The prior year comparatives of the Statement of Total Return are shown in note 33 (c).

35

Nuffield College Notes to the financial statements For the year ended 31 July 2021

15 DEBTORS

Amounts falling due within one year:
Trade debtors
Amounts owed by College members
Amounts owed by joint venture
Loans repayable within one year
Prepayments and accrued income
Other debtors
Amounts falling due after more than one year:
Loans
CREDITORS: falling due within one year
Trade creditors
Amounts owed to College Members
Holiday pay accrual
Taxation and social security
College contribution
Accruals and deferred income
Other creditors		 2021
Group
£'000
1,926
3
3,437
4
218
96
0		 2020
Group
£'000
1,656
9
2,575
2
429
72
0
4,743
2020
Group
£'000
396
1
71
126
0
444
304
1,342		 2021
College
£'000
1,926
3
3,437
4
218
96
0
5,684
2021
College
£'000
487
1
76
849
0
526
343
2,282		 2020
College
£'000
1,656
9
2,575
2
429
72
0
5,684 4,743
2021
Group
£'000
487
1
76
849
0
526
343		 2020
College
£'000
396
1
71
126
0
444
304
2,282 1,342

16 CREDITORS: falling due within one year

17 CREDITORS: falling due after more than one year

CREDITORS: falling due after more than one year
Bank loans 2021
Group
£'000
31,920		 2020
Group
£'000
31,900
31,900		 2021
College
£'000
31,920
31,920		 2020
College
£'000
31,900
31,920 31,900

A loan of £32 million was arranged in 2014/15 with Royal Bank of Scotland to (i) fund the acquisition of Investment Properties in Oxford and (ii) refinance the existing bank loans. The loan is repayable at the end of 10 years (2025) and may be repaid earlier. The interest rate is 1% above LIBOR.

The loan is measured at amortised cost using the effective interest method.

The loan arrangement fee of £193k has been treated as a deduction from the amount of the principal advanced and the effective interest rate on the loan has been calculated to reflect the arrangement fee being amortised over the loan period.

18 PROVISIONS FOR LIABILITIES AND CHARGES

PROVISIONS FOR LIABILITIES AND CHARGES
At start of year
Charged in the Statement of Financial Activities
Settled in the year
At end of year		 2021
Group
£'000
0
0
0		 2020
Group
£'000
0
0
0
0		 2021
College
£'000
0
0
0
0		 2020
College
£'000
0
0
0
0 0

36

Nuffield College Notes to the financial statements For the year ended 31 July 2021

19 ANALYSIS OF MOVEMENTS ON FUNDS

Endowment Funds - Permanent
General
Nuffield College Trust
Guardian Fellowship Fund
GS Pollard Memorial Bursary
Ford Foundation Endowment
Gwilym Gibbon Bequest
Arthur Goodhart Fund
Andrew Mellon
PM Williams Memorial Appeal
Jemolo Research Fellowship
Oxford Graduate Scholarship Funds
Subtotal (Permanent endowment)
Endowment Funds - Expendable
General
Endowment funds invested in joint venture
Oxford Graduate Scholarship Funds
Subtotal (Expendable endowment)
Total Endowment Funds - College		 At 1 August
Incoming
2020
resources
£'000
£'000
78,996
2,943
67,968
2,799
2,146
77
198
7
11,576
417
5,723
206
477
17
1,599
58
120
4
1,155
42
2,927
465
172,885
7,035
56,324
3,362
10,760
0		 Resources
expended
£'000
(1,417)
0
(37)
(3)
(201)
(99)
(8)
(28)
(2)
(20)
(54)
(1,869)
(1,278)
0		 Transfers
£'000
(3,085)
0
(77)
(7)
(417)
(224)
(17)
(57)
(4)
(42)
(58)
(3,988)
(5,984)
500		 Gains/
(losses)
£'000
15,062
9,888
396
37
2,139
1,058
88
296
22
213
572
29,771
12,801
0
299
13,100
42,871		 At 31 July
2021
£'000
92,499
80,655
2,505
232
13,514
6,664
557
1,868
140
1,348
3,852
203,834
65,225
11,260
1,918
78,403
1,620
58		 (28) (31)
68,704
3,420
241,589
10,455
(2,430)
0
239,159
10,455
622
22
272
10
3,007
108
1,186
43
1,371
49
299
11
115
4
776
28
20
3
95
3
7,763
281		 (1,306) (5,515)
(9,503)
0
(9,503)
77
7
417
224
17
57
4
42
0
90
935
(3,175) 282,237
0
Movement of endowment funds invested in JV (1,388) (3,818)
Total Endowment Funds - Group
Restricted Funds
Guardian Fellowship Fund
GS Pollard Memorial Bursary
Ford Foundation Endowment
Gwilym Gibbon Bequest
Arthur Goodhart Fund
Andrew Mellon
PM Williams Memorial Appeal
Jemolo Research Fellowship
Studentship Appeal and Studentship Support
Oxford Graduate Scholarship Funds
Total Restricted Funds - College
Restricted funds held by subsidiaries
Total Restricted Funds - Group
Unrestricted Funds
General funds
Fixed asset designated fund
Other designated funds
Pension reserve
Total Unrestricted Funds - College
Unrestricted funds held by subsidiaries
Total Unrestricted Funds - Group
Total Funds		 41,483
115
50
556
219
254
55
21
143
0
18
1,431
(3,175) 278,419
(11)
(5)
(231)
(812)
(24)
(45)
(2)
(13)
0
(96)		 825
334
3,857
860
1,667
377
142
976
23
110
(1,239) 9,171
0
0		 0 0 0 0
7,763
281
3,739
1,508
11,264
0
2,691
1
(1,599)
0
16,095
1,509
0
0
16,095
1,509
263,017
12,245		 (1,239) 935
8,041
393
0
134
8,568
0
8,568
0		 1,431
0
0
0
0
0
0
0
42,914		 9,171
(7,812)
(371)
(212)
0		 5,476
11,286
2,480
(1,465)
(8,395) 17,777
0 0
(8,395) 17,777
(12,809) 305,367

The prior year comparatives of the Analysis of Movement of Funds are shown in note 33 (d).

37

Nuffield College Notes to the financial statements For the year ended 31 July 2021

20 FUNDS OF THE COLLEGE DETAILS

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

Endowment Funds - Permanent:

General endowment
Nuffield College Trust
Guardian Research Fellowship
GS Pollard Memorial Bursary
Ford Foundation Endowment
Gwilym Gibbon Bequest
Arthur Goodhart Fund
Andrew Mellon Fund
PM Williams Memorial Appeal
Jemolo Research Fellowship
Oxford Graduate Scholarship Funds		 Sources/Origins
Purposes
The Scott Trust
The Ford Foundation
Sir I. Gwilym Gibbon
Professor Goodhart,
(organised by the
Association of American
Rhodes Scholars)
Provides for travel grants to and from North America.
The Andrew W. Mellon
Foundation
To provide for studentship or research funding into
modern developments in public finance.
Nuffield Foundation
To provide a College for postgraduate work especially in
the study of social (including economic and political)
problems.
CIPFA
J.Hausman, Swire
Educational Trust and
others
Five Trust Funds, the purpose of which is to pay some
or all of the University and College fees together with a
maintenance grant. The original capital cannot be spent.
A visiting Fellowship by persons whose field of research
is Italy.
Supports Fellows of the College in the field of politics,
with particular reference to European politics.
For the study of the problems of Government.
A bare Trust established for the purpose of investing in
the Oxford Funds, administered by OUem. The capital
and income are treated in the same way and subject to
the same restrictions as the general endowment.
Supports scholarly activities in conjunction with the
Andrew Mellon Professorship, and the field of American
Government.
Appeal issued in 1984,
administered by Nuffield
College
Student support, and Library expenditure.
The Bank of Italy, the
Banca Commerciale
Italiana, the Banco di
Santo Spirito, The
Instituto S. Paolo di
Torino and the
Assicurazioni Generali
Research by persons with experience in the print and
broadcast media.
Lord Nuffield's Benefaction

Endowment Funds - Expendable: General

Lord Nuffield's Bequest To provide additional funds to support the College for postgraduate work especially in Sir Norman Chester's Bequest the study of social (including economic and political) problems. P.M. Williams' Bequest Endowment funds invested in joint venture Note 12 Oxford Graduate Scholarship Funds College matched studentship funding allocation

Restricted Funds:

The following funds represent unspent income from the respective endowment fund: Guardian Research Fellowship GS Pollard Memorial Bursary Ford Foundation Endowment Gwilym Gibbon Bequest Arthur Goodhart Fund Andrew Mellon Fund PM Williams Memorial Appeal Jemolo Research Fellowship Oxford Graduate Scholarship Funds Studentship Appeal and Studentship Support Annual appeal organised For student financial support by Nuffield College Designated Funds Fixed asset designated fund Unrestricted Funds which are represented by the fixed assets of the College and therefore not available for expenditure on the College's general purposes Other designated funds Unrestricted Funds allocated by the Fellows for future costs of specific research projects. Pension reserve Unrestricted Funds, in accordance with FRS 102, representing the defined benefit pension scheme liability

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.

38

Nuffield College Notes to the financial statements For the year ended 31 July 2021

21 ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS
Unrestricted
Funds
£'000
Tangible fixed assets
11,286
Property investments
0
Other investments
0
Investment in joint venture
0
Net current assets
7,956
Long term liabilities
0
Pension scheme liability
(1,465)
17,777
Unrestricted
Funds
£'000
Tangible fixed assets
11,264
Property investments
0
Other investments
0
Investment in joint venture
0
Net current assets
6,430
Long term liabilities
0
Pension scheme liability
(1,599)
16,095		 Restricted
Funds
£'000		 Endowment
Funds
£'000		 2021
Total
£'000
11,286
0
0
0
7,956
0
(1,465)		 0
4,321
4,621
0
229
0
0
9,171		 0
121,597
176,552
7,442
4,748
(31,920)
0
278,419		 11,286
125,918
181,173
7,442
12,933
(31,920)
(1,465)
17,777 305,367
Restricted
Funds
£'000
0
3,622
3,952
0
189
0
0		 Endowment
Funds
£'000
0
107,902
150,869
8,330
3,958
(31,900)
0		 2020
Total
£'000
11,264
111,524
154,821
8,330
10,577
(31,900)
(1,599)
16,095 7,763 239,159 263,017

39

Nuffield College Notes to the financial statements For the year ended 31 July 2021

22 TRUSTEES' REMUNERATION

The trustees of the College comprise the permanent Governing Body Fellows who sit on governing body by virtue of their employment.

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 the College or the University and the College for the academic or management services they provide.

Changes in remuneration are scrutinised by the Fellows' Remuneration Review Committee.

Trustees of the College fall into the following categories:

Professorial Fellow Official Fellow Research Fellow There are also three trustees, the Warden, the Bursar and the Senior Tutor, who work full time on management.

Trustees are eligible for participation in the College housing scheme and 18 trustees live in houses owned jointly by the College as at 31 July 2021.

One trustee, the Warden, lives in property wholly owned by the College.

Some trustees receive additional allowances for additional work carried out as part time College officers, e.g. Dean. These amounts are included within the remuneration figures below.

Remuneration paid to trustees

Remuneration paid to trustees
Range
£Nil
£1,000-£4,999
£15,000-£19,999
£20,000-£24,999
£25,000-£29,999
£30,000-£34,999
£35,000-£39,999
£40,000-£44,999
£45,000-£49,999
£55,000-£59,999
£65,000-£69,999
£75,000-£79,999
£85,000-£89,999
£90,000-£94,999
£95,000-£99,999
£100,000-£104,999
£110,000-£114,999
£115,000-£119,999
£120,000-£124,999
£140,000-£144,999
£145,000-£149,999
Total		 2021 2020
1
120,387
1
121,701
1
141,224
1
142,806
0
0
1
148,184
1
103,407
0
0
2
227,414
2
228,741
1
115,272
2
233,655
1
86,741
0
0
1
92,865
0
0
0
0
1
99,794
1
56,657
1
56,532
0
0
1
67,650
0
0
1
79,303
6
217,278
5
183,066
1
40,896
0
0
0
0
1
45,426
3
68,638
6
135,171
15
435,482
12
348,571
3
95,997
3
99,383
0
1
3,525
1
3,308
2
34,305
0
0
£
£
1
0
1
Gross remuneration,
taxable benefits and
pension contributions
Number of
Trustees /
Fellows
Gross remuneration,
taxable benefits and
pension contributions
Number of
Trustees /
Fellows
41
40
1,993,291
1,840,088

The amounts disclosed above include only payments made by the College; some trustees are paid jointly by the College and the University of Oxford.

All trustees may eat at common table, as can all other employees who are entitled to meals while working.

Other transactions with trustees

No trustee claimed expenses for any work performed in discharge of duties as a trustee.

See also note 30 Related Party Transactions.

40

Nuffield College Notes to the financial statements For the year ended 31 July 2021

23 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 the schemes are each held in separate trustee-administered funds. USS and OSPS schemes 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 Statement of Financial Activities 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, 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.

Schemes accounted for under FRS 102 paragraph 28.11 as defined contribution schemes

Actuarial valuations

Qualified actuaries periodically value the USS and OSPS schemes 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 as follows:

USS OSPS
Date of valuation: 31/03/18 31/03/19
Date valuation results published: 16/09/19 19/06/20
Value of liabilities: £67.3bn £848m
Value of assets: £63.7bn £735m
Funding surplus / (deficit): (£3.6bn) (£113m)
Principal assumptions:
CPI - 0.73% Gilts
to CPI +0.5% -
• Discount rate: +2.52%a 2.25%b
• Rate of increase in salaries n/a RPI
Average
• Rate of increase in pensions CPIc RPI/CPI
Assumed life expectancies on retirement at age 65:
• Males currently aged 65 24.6 yrs 21.7 yrs
• Females currently aged 65 26.1 yrs 24.4 yrs
• Males currently aged 45 26.6 yrs 23.0 yrs
• Females currently aged 45 27.9 yrs 25.8 yrs
Funding Ratios:
• Technical provisions basis 95% 87%
• Statutory Pension Protection Fund basis 76% 74%
• 'Buy-out' basis 56% 60%
21.1% 19%
Employer contribution rate (as % of pensionable salaries): increasing to
23.7% on
01/10/21
Effective date of next valuation: 31/03/20 31/03/22

a. The discount rate (forward rates) for the USS valuation was: Years 1-10: CPI + 0.14% reducing linearly to CPI – 0.73% Years 11-20: CPI + 2.52% reducing linearly to CPI + 1.55% by year 21 Years 21 +: CPI + 1.55%

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

41

Nuffield College Notes to the financial statements For the year ended 31 July 2021

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 1.3% p.a.

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. as at 31 March 2019).

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 College’s future contribution commitment. The sensitivities regarding the principal assumptions used to measure the scheme liabilities are set out below:

Assumption USS Change in
assumption		 Impact on USS liabilities
Initial discount rate increase by 0.1% decrease by £1.2bn
Asset values reduce by 10% increase by £6.4bn
RPI - CPI spread increase by 0.1% decrease by £0.7bn
more prudent assumption
Rate of mortality (mortality rated down by a increase by £1.6bn
furtheryear)
Assumption OSPS Change in
assumption		 Impact on OSPS
technical provisions
Valuation rate of interest decrease by 0.25% increase by £45m
RPI increase by 0.25% increase by £40m

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. The principle assumptions used in these calculations are tabled below:

OSPS USS
Finish Date for Deficit Recovery Plan 30/01/28 31/03/28
Average staff number increase 1.00% 1.00%
Average staff salary increase 2.00% 2.00%
Average discount rate over period 0.89% 0.89%
Effect of 0.5% change in discount rate:
+ 0.5% (£6k) (£23k)
- 0.5% £6k £23k
Effect of 1% change in staff growth:
+ 1% £5k £47k
- 1% (£5k) (£45k)

A provision of £1,465k has been made at 31 July 2021 (2020: £1,599k) 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.

Pension charge for the year

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:

Scheme 2021
2020
Universities Superannuation Scheme
University of Oxford Staff Pension Scheme
Other schemes – contributions
Total		 £000's
£000's
574
528
160
152
0
0
734
680

Included in other creditors are pension contributions payable of £nil (2020: £nil).

42

Nuffield College Notes to the financial statements For the year ended 31 July 2021

24 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.

25 FINANCIAL INSTRUMENTS

The carrying values of the College's financial assets and liabilities are summarised by the following categories:

Note 2021 2020
Financial Assets £'000 £'000
Measured at fair value through profit or loss
Short term Investments 27 3,031 6,024
Investments 11 181,173 154,821
Measured at undiscounted amount receivable
Trade and other debtors 15 5,684 4,743
Financial Liabilities
Measured at undiscounted amount payable
Trade and other creditors 16 2,282 1,342
Measured at amortised cost
Bank loan 17 31,920 31,900
26
RECONCILIATION OF NET INCOMING RESOURCES TO
NET CASH FLOW FROM OPERATIONS
Net income/(expenditure)
Elimination of non-operating cash flows:
Investment income
(Gains)/losses in investments
Endowment donations
Depreciation
Financing costs
(Surplus)/loss on sale of fixed assets
Decrease/(Increase) in stock
Decrease/(Increase) in debtors
(Decrease)/Increase in creditors
(Decrease)/Increase in provisions
(Decrease)/Increase in pension scheme liability
Net cash provided by (used in) operating activities		 2021
Group
£'000
43,738
(10,450)
(44,302)
(354)
371
359
(96)
2
194
949
0
(134)
(9,723)		 2020
Group
£'000
(4,299)
(10,092)
4,492
(268)
354
576
(278)
7
(948)
(865)
0
(323)
(11,644)

27 a. ANALYSIS OF CASH AND CASH EQUIVALENTS AND CHANGES IN NET DEBT

Cash at bank and in hand
Investment asset cash
Short term investments
Bank overdrafts
Total cash and cash equivalents		 2021
£'000
6,435
565
3,031
0
10,031		 2020
£'000
1,085
1,161
6,024
0
8,270

b. ANALYSIS OF CHANGES IN NET DEBT

Cash
Cash equivalents
Loans falling due after more than one year
Total		 At start of
year
£'000
1,085
7,185
(31,900)
(23,630)		 Cash
flows
Foreign
exchange
movements
£'000
£'000
5,438
(88)
(3,589)
0
0
0
1,849
(88)		 Other non-
cash
changes
£'000
0
0
(20)
(20)		 At end of
year
£'000
6,435
3,596
(31,920)
(21,889)

43

Nuffield College Notes to the financial statements For the year ended 31 July 2021

28 FINANCIAL COMMITMENTS

At 31 July 2021 the College had no annual commitments under non-cancellable operating leases.

29 CAPITAL COMMITMENTS

The College had contracted commitments at 31 July 2021 for future capital projects totaling £1,705k (2020 - £2,762k).

30 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.

As at 31 July 2021, the College had properties with the following net book values owned jointly with fellows under joint equity ownership agreements between the fellows and the College. Those fellows who were trustees as at 31 July 2021 are marked with an asterisk in the list below.

R Allen
S Bond
R Breen
J Darwin
M Ellison
A Eggers
G Evans
D Gallie
E Gonzalez Ocantos
J Green
R Kashyap
E Kechagia-Ovseiko
C Laborde
K MacDonald
M Mills
C Monden
T Moore
D Rueda
D Snidal
D Kirk
F Windmeijer
Total net book value of properties owned jointly with trustees*		 2021
£'000
156
171
293
281
0
0
611
111
227
218
289
327
141
173
414
210
300
0
313
410
412
5,057		 2020
£'000
156
159
293
281
374
415
608
111
227
218
289
327
141
173
414
210
300
179
313
0
0
5,188

All joint equity properties are subject to sale if the Fellow ceases to be a member of the College (or of an equivalent institution with Oxford University) other than at retirement.

The Fellows pay compensation to the College on the College owned share of the properties, at a rate of 1% of the original College equity, indexed by CPIH.

During the course of the year, three participants of the housing scheme who were also fellows of the College bought out the College’s share of their respective properties. The Fellows and the market values of the College’s share of the properties bought out were as follows:

M Ellison £395k A Eggers £454k

D Rueda £216k

Professional valuations of the properties were obtained from independent Chartered Surveyors in order to establish the market value of the properties and therefore the College's share of them.

31 CONTINGENT LIABILITIES

There were no contingent liabilities which require disclosure.

44

Nuffield College Notes to the financial statements For the year ended 31 July 2021

32 POST BALANCE SHEET EVENTS

a. USS Pension Provision

Since the year end, following the completion of the 2020 actuarial valuation, a new dual rate schedule of contributions has been agreed with an effective date of 1 October 2021. Recalculating the USS provision on the basis of these contributions would result in increasing the obligation to fund the deficit to £3,352k, an increase of £2,188k.

A further change to deficit recovery contributions will become applicable under the 2020 valuation if the Joint Negotiating Committee recommended deed on benefit changes has not been executed by 28 February 2022. In this scenario, higher deficit recovery contributions will commence from 1 October 2022 at 3% and then increase every 6 months until they reach 20% at 1 October 2025. They remain at this level until 31 July 2032. Negotiations continue and an increase to this level is considered remote.

If the Schedule of Contributions remains unchanged, the College's Financial Statements for the year ended 31 July 2022 will reflect these changes to the provision, subject to any other changes in financial and operational assumptions.

b. Subsidiary Undertakings

Since the year end, Nuffield Properties Limited, in which the College held 100% of the issued share capital and which was dormant in the current and previous reporting periods, has been dissolved and struck off the Companies Register.

45

Nuffield College Consolidated Statement of Financial Activities For the year ended 31 July 2021

33 ADDITIONAL PRIOR YEAR COMPARATIVES

a. CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Prior Year)

Unrestricted
Funds
£'000
INCOME AND ENDOWMENTS FROM:
Charitable activities:
Teaching, research and residential
1,810
Other Trading Income
0
Donations and legacies
0
Investments
Investment income
89
Total return allocated to income
7,883
Other income (CJRS)
176
Total income
9,958
EXPENDITURE ON:
Charitable activities:
Teaching, research and residential
7,947
Generating funds:
Fundraising
219
Trading expenditure
0
Investment management costs (incl. Loan interest)
0
Total Expenditure
8,166
Net Income/(Expenditure) before gains
1,792
Net gains/(losses) on investments
0
Net Income/(Expenditure)
1,792
Group share of joint venture's profit/(loss)
0
Transfers between funds
0
Other recognised gains/losses
Gains/(losses) on revaluation of fixed assets
0
Actuarial gains/(losses) on defined benefit pension schemes
0
Net movement in funds for the year
1,792
Fund balances brought forward
14,303
Funds carried forward at 31 July
16,095		 Unrestricted
Funds
£'000
INCOME AND ENDOWMENTS FROM:
Charitable activities:
Teaching, research and residential
1,810
Other Trading Income
0
Donations and legacies
0
Investments
Investment income
89
Total return allocated to income
7,883
Other income (CJRS)
176
Total income
9,958
EXPENDITURE ON:
Charitable activities:
Teaching, research and residential
7,947
Generating funds:
Fundraising
219
Trading expenditure
0
Investment management costs (incl. Loan interest)
0
Total Expenditure
8,166
Net Income/(Expenditure) before gains
1,792
Net gains/(losses) on investments
0
Net Income/(Expenditure)
1,792
Group share of joint venture's profit/(loss)
0
Transfers between funds
0
Other recognised gains/losses
Gains/(losses) on revaluation of fixed assets
0
Actuarial gains/(losses) on defined benefit pension schemes
0
Net movement in funds for the year
1,792
Fund balances brought forward
14,303
Funds carried forward at 31 July
16,095		 Restricted
Funds
£'000
0
0
2
276
468
0		 Endowed
Funds
£'000
0
0
268
9,727
(8,351)
0		 2020
Total
£'000
1,810
0
270
10,092
0
176
9,958
7,947
219
0
0		 746
1,157
0
0
109		 1,644
0
0
0
2,723		 12,348
9,104
219
0
2,832
8,166 1,266 2,723 12,155
1,792 (520) (1,079) 193
0 (39) (4,453) (4,492)
1,792 (559) (5,532) (4,299)
0
0
0
0		 0
412
0
0		 (762)
(412)
0
0		 (762)
0
0
0
1,792
14,303		 (147)
7,910		 (6,706)
245,865		 (5,061)
268,078
16,095 7,763 239,159 263,017

46

Nuffield College Notes to the financial statements For the year ended 31 July 2021

33 ADDITIONAL PRIOR YEAR COMPARATIVES - continued

PROPERTY INVESTMENTS (Comparatives to Note 10)
Group and College
Valuation at start of year
Additions and improvements at cost
Disposals
Revaluation gains/(losses) in the year
Valuation at end of year		 Agricultural Commercial
£'000
£'000
5,600
101,885
252
3,216
0
0
1,168
(597)
7,020
104,504		 Other
£'000
0
0
0
0
0		 2020
Total
£'000
107,485
3,468
0
571
104,504 111,524

c. STATEMENT OF INVESTMENT TOTAL RETURN (Comparatives to Note 14)

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
Less: Loan interest payable
Other transfers
Net profit/(loss) in relation to joint venture
Total
Unapplied total return allocated to income in the reporting period
Expendable endowments transferred to income
Net movements in reporting period
At end of the reporting period:
Gift component of the permanent endowment
Unapplied total return
Expendable endowment
Total Endowments		 Unapplied
Trust for
Total
Investment
Return
Total
£'000
£'000
£'000
71,672
0
71,672
Permanent Endowment		 Unapplied
Trust for
Total
Investment
Return
Total
£'000
£'000
£'000
71,672
0
71,672
Permanent Endowment		 Unapplied
Trust for
Total
Investment
Return
Total
£'000
£'000
£'000
71,672
0
71,672
Permanent Endowment		 Expendable
Total
Endowment Endowments
£'000
£'000
0
71,672
0
103,776		 Expendable
Total
Endowment Endowments
£'000
£'000
0
71,672
0
103,776
71,672 71,672 71,672
0
0		 103,776 103,776 103,776
0 0 70,417 70,417
71,672 103,776 175,448 70,417 245,865
268 0 268 0 268
0
0
0
0
0
0		 6,363 6,363 3,364 9,727
(3,930) (3,930) (523) (4,453)
(1,098) (1,098) (1,049) (2,147)
(408) (408) (168) (576)
(412) (412) 0 (412)
0 0 (762) (762)
268 515 783 862 1,645
0
0		 (3,346) (3,346) 0 (3,346)
0 0 (5,005) (5,005)
0
268		 (3,346) (3,346)
(2,563)		 (5,005)
(4,143)		 (8,351)
(2,831) (6,706)
71,940 0 71,940 0
0		 71,940
0
0
71,940		 100,945 100,945 100,945
0 0 66,274 66,274
100,945 172,885 66,274 239,159

47

Nuffield College Notes to the financial statements For the year ended 31 July 2021

33 ADDITIONAL PRIOR YEAR COMPARATIVES - continued

d. ANALYSIS OF MOVEMENTS ON FUNDS (Comparatives to Note 19)

Endowment Funds - Permanent
General
Nuffield College Trust
Guardian Fellowship Fund
GS Pollard Memorial Bursary
Ford Foundation Endowment
Gwilym Gibbon Bequest
Arthur Goodhart Fund
Andrew Mellon
PM Williams Memorial Appeal
Jemolo Research Fellowship
Oxford Graduate Scholarship Funds
Subtotal (Permanent endowment)
Endowment Funds - Expendable
General
Endowment funds invested in joint venture
Oxford Graduate Scholarship Funds
Subtotal (Expendable endowment)
Total Endowment Funds - College		 At 1 August
Incoming
2019
resources
£'000
£'000
80,727
2,877
68,610
2,571
2,187
76
202
7
11,798
411
5,837
204
487
17
1,628
57
123
4
1,177
41
2,672
366
175,448
6,631
60,406
3,332
10,760
0
919
32
72,085
3,364
247,533
9,995
(1,668)
245,865
9,995
537
19
261
9
2,833
98
1,752
62
1,333
46
277
10
109
4
724
25
17
3
67
2
7,910
278		 Resources
expended
£'000
(1,143)
0
(30)
(3)
(163)
(81)
(7)
(22)
(2)
(16)
(39)
(1,506)
(1,204)
0
(13)
(1,217)		 Transfers
£'000
(2,878)
0
(76)
(7)
(412)
(208)
(17)
(56)
(4)
(41)
(59)
(3,758)
(5,692)
0
687
(5,005)
(8,763)
(8,763)
76
7
412
208
17
56
4
41
0
59
880		 Gains/
(losses)
£'000
(587)
(3,213)
(11)
(1)
(58)
(29)
(3)
(8)
(1)
(6)
(13)
(3,930)
(518)
0
(5)
(523)
(4,453)		 At 31 July
2020
£'000
78,996
67,968
2,146
198
11,576
5,723
477
1,599
120
1,155
2,927
172,885
56,324
10,760
1,620
68,704
(2,723) 241,589
Movement of endowment funds invested in JV (762) (2,430)
Total Endowment Funds - Group
Restricted Funds
Guardian Fellowship Fund
GS Pollard Memorial Bursary
Ford Foundation Endowment
Gwilym Gibbon Bequest
Arthur Goodhart Fund
Andrew Mellon
PM Williams Memorial Appeal
Jemolo Research Fellowship
Studentship Appeal and Studentship Support
Oxford Graduate Scholarship Funds
Total Restricted Funds - College
Restricted funds held by subsidiaries
Total Restricted Funds - Group
Unrestricted Funds
General funds
Fixed asset designated fund
Other designated funds
Pension reserve
Total Unrestricted Funds - College
Unrestricted funds held by subsidiaries
Total Unrestricted Funds - Group
Total Funds		 (5,215)
(3)
(1)
(14)
(9)
(6)
(1)
(1)
(4)
0
0
(39)
(2,723) 239,159
(7)
(4)
(322)
(827)
(19)
(43)
(1)
(10)
0
(33)		 622
272
3,007
1,186
1,371
299
115
776
20
95
(1,266) 7,763
0
0		 0 0 0 0
7,910
278
3,231
2,070
10,436
0
2,558
5
(1,922)
0
14,303
2,075
0
0
14,303
2,075
268,078
12,348		 (1,266) 880
6,092
1,182
286
323
7,883
0
7,883
0		 (39)
0
0
0
0
0
0
0
(5,254)		 7,763
(7,654)
(354)
(158)
0		 3,739
11,264
2,691
(1,599)
(8,166) 16,095
0 0
(8,166) 16,095
(12,155) 263,017

48

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