2022-06-30-accounts

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Introduction and Summary Financial Results	3
Professional Advisers	4
Charity Trustees	5
Objects and Public Benefit	6
Operating and Financial Review	8
Corporate Governance and Statement of Internal Control	19
Responsibilities of the College Council and the Governing Body	20
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Statement of Principal Accounting Policies	24
Consolidated Statement of Comprehensive Income and Expenditure	32
Consolidated Statement of Changes in Reserves	33
Consolidated Balance Sheet	34
Consolidated Cash Flow Statement	35
Notes to the Accounts	36

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Newnham College is one of the 31 colleges in the University of Cambridge. It was founded in 1871, and received its Royal Charter in 1917. �� only women can be admitted as junior members (students) or elected as senior members (Fellows). The College celebrated its 150[th] Anniversary in 2021-22.

The College admits full-��degree courses; and postgraduates (predominantly full-time, but some part-time) studying for Masters, PhD and other postgraduate degrees, diplomas and certificates. The total number of full-time students as at 1 December 2021 was 651 (2020: 679), comprising 429 undergraduates and 222 postgraduates (2020: 429 and 222)��had 66 Fellows as at 1 October 2022 (2021: 67), most of whom who are active in teaching and research within the University.

The College occupies a 17-acre site close to the centre of Cambridge, consisting of buildings built between 1875 and 2019, offering residential accommodation to more than 500 students, set in landscaped gardens. The buildings also house a library, teaching rooms, offices, shared eating spaces (dining hall, buttery, café), meeting rooms, common rooms and a gym.

The College is a Registered Charity, regulated by the Charity Commission; and is registered with the Fundraising Regulator.

These accounts are presented in the format of the Recommended Cambridge College Accounts (RCCA), which complies with the Further and Higher Education SORP (Statement of Recommended Practice: Accounting for Further and Higher Education).

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The financial statements consolidate the activitie�� Newnham College Management Ltd, Newnham College Library Company Ltd, and Newnham College Ltd. The latter two companies are inactive.

For a third successive financial year, the �� affected by the Covid-19 pandemic, with reduced operational income, in particular in relation to lost conference business in the first three months of the financial year, July to September 2021.

Total operational income for the year was £9.33m (2020-21: £7.15m), which included £3.57m (202021: £3.55m) in academic fees; and £4.09m (2020-21: £2.16m) from accommodation, catering and conferences. In addition, £4.58m (2020-21: £2.34m) in donations and legacies was received; and £3.46m (2021-22: £6.59m) of endowment return, �� return rule. (The 2020-21 figure of £6.59m included an exceptional distribution of £3.50m to mitigate against the lost income over two financial years, so the true comparative figure for 2020-21 would be £3.09m.) Whereas in 2020-21 the College reported a gain on investments of £28.60m, in 2021-22 the equivalent figure is a loss of £17.86m.

Total operational expenditure for the year before pension provisions and loan interest payments was £12.73m (2020-21: £11.52m) including depreciation, or £11.05m (2020-21: £9.86m) excluding depreciation of £1.68m (2020-21: £1.66m). Of this £11.05m, more than half (52%; £5.71m) was on staff costs (2020-21: 56%; £5.58m). The Statement of Comprehensive Income and Expenditure (SOCIE) shows total Expenditure of £15.62m (2020-21: £12.35m), including £1.82m (2020-21: - £202k) in movement to pension provisions, and £1.01m (2020-21: £1.02m) in loan interest payments. In addition, a further £0.99m (2020-21: £1.50m) of capital expenditure is included in the balance sheet.

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��112.68m as at 30 June 2022 (30 June 2021: £133.62m); and the balance sheet and the cash flow statement show £5.04m of cash as at the same date (30 June 2021: £2.29m).

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Price Bailey LLP Tennyson House Cambridge Business Park Cambridge CB4 0WZ

�� NatWest Bank �� Branch 2� �� Cambridge CB2 3��

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Stanhope Consulting (part of Stanhope Capital) 35 Portman Square London W1H 6LR

�� Carter Jonas LLP One Station Square Cambridge CB1 2GA

Newnham College Sidgwick Avenue Cambridge CB3 9DF

01223 335700 www.newn.cam.ac.uk

Charity registration no. 1137512

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The members of the College Council act as the Trustees of the charity. The College Council meets at least nine times in a year (three times per term). In the financial year 2021-22 the following were members of the College Council:

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Miss Alison Rose Principal; Chair of the Council Dr Barbara Blacklaws Vice-Principal Professor Liba Taub Senior Tutor Mr Christopher Lawrence Bursar; Secretary of the Council

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As at 1 July 2021: Dr Christina Angelopoulos Dr Helen Bao Dr Kate Fleet Dr Laurie Friday Dr Jenny Mander Dr Emma Mawdsley Dr Delphine Mordey Dr Rachael Padman

As at 30 June 2022: Dr Carol Atack Professor Helen Bao Dr Kate Fleet Dr Laurie Friday Dr Jenny Mander Professor Emma Mawdsley Dr Delphine Mordey Dr Sheila Watts

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As at 1 July 2021: Fania Christodoulides (MCR) Lottie Mills (JCR) Alice Tort (JCR)

As at 30 June 2022: Hanna Doherty (JCR) Sangeet Jain (MCR) Alice Wood (JCR)

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The Governing Body, comprising all Fellows of the College in Categories A to E, is required by the College Statutes to be responsible for the approval of the annual audited accounts. The Governing Body, which meets at least five times in a year, is chaired by the Principal and a Fellow is the Secretary. There were 66 Governing Body Fellows as at 1 October 2022.

A full list of the Governing Body Fellows can be found on the College website at: www.newn.cam.ac.uk/people

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(a) To further public benefit by providing a liberal education and promoting learning and research through the provision of a college for women within the University of Cambridge.
(b) To do all such other things as are incidental or conducive to advancing education and learning among women in Cambridge and elsewhere.
(c) For the purposes above to receive and apply donations from persons desiring to promote the objects of the College.
(d) To invest the moneys of the College not immediately required in any securities or investments which may from time to time be authorised for the purpose by the Council.

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The Trustees on appointment are provided with a link to the Charity Commission document �Charities and Public Benefit: Summary Guidance for Charity Trustees�, and are reminded at least annually of its recommendations and requirements. The College provided in 2021-22 an education for 651 (2020-21: 679) full-time undergraduate and postgraduate women students, in conjunction with the University of Cambridge, which is recognised internationally as being of the highest standard. This education develops students academically and advances their leadership qualities and interpersonal skills, and so prepares them to play full and effective roles in society. In particular, the College provides:

teaching facilities and individual or small-group academic supervision for undergraduates;
pastoral, administrative and academic support for all students through its tutorial and mentor systems; and
social, cultural, musical, recreational and sporting facilities to enable each of its students to realise as much as possible of their academic and personal potential whilst studying at the College.

The College advances research mainly by:

providing Research Fellowships to outstanding academics at the early stages of their careers, which enables them to develop and focus on their research in this formative period before they undertake the full teaching and administrative duties of a permanent academic post;
supporting research work pursued by its other Fellows through promoting interaction across disciplines, providing facilities and providing grants for national and international conferences, research trips and research materials;
encouraging visits from outstanding academics both from other UK institutions and from abroad; and
encouraging the dissemination of research undertaken by members of the College through the publication of papers in academic journals or other suitable means.

The College maintains an extensive Library (including special collections), thus providing a valuable resource for students and senior members of the College, members of other Colleges and the University of Cambridge more widely, and external scholars and researchers.

The Trustees are satisfied that the College remains compliant with its duty in regard to public benefit. The primary beneficiaries are the resident members of the College, both students and academic staff, all of whom are directly engaged in education, learning or research. Other beneficiaries include: students and academic staff from other colleges in Cambridge and the

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University of Cambridge more widely, visiting academics from other higher education institutions, and visiting schoolchildren and alumnae of the College who have an opportunity to attend educational events at the College or use its academic facilities. Members of the general public are also able to attend various educational activities in the College (such as public lectures).

As a College in the University of Cambridge the primary beneficiaries are academics and students of the University, all of whom need to meet high academic standards to be appointed or admitted and that requirement stands at the core of its nature. The College admits as students those who have the highest potential for benefiting from the education provided by the College and the University and recruits as academic staff those who are able to contribute most to the academic excellence of the College, regardless of their financial, social, religious or ethnic background.

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1. Covid-19	9
2. Student numbers	9
3. SOCIE: Income	10
4. SOCIE: Operating expenditure	13
5. SOCIE: Other expenditure	14
6. SOCIE: Gain/(loss) on investments	16
7. Capital expenditure	16
8. Balance sheet and Reserves	16
9. Cash flow	17
10. Reserves policy	17
11. Principal risks and uncertainties	17
12. Future plans	18

References in the text below to ‘Notes’ are to the ‘Notes to the Accounts’ on pages 36 to 5�.

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For a third successive financial year, the �� affected by the Covid-19 pandemic, with 2018-19 being the last financial year unaffected by Covid-19. However, the impact was much more limited than in the previous financial year, with the conference business in the first three months of the financial year (July to September 2021) being the main casualty of the continuing effects of the pandemic.

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The biggest potential variable from one year to the next which affects both income and expenditure is the size of the student body. The College admits both undergraduate and postgraduate students, and has a target of 650 full-time fee-paying students, made up of 420 undergraduates and 230 postgraduates. The total number of full-time fee-paying students as at 1 December 2021 was 651, which represented a decrease from the previous year (679 in 2020) but almost exactly on target. This total comprised 429 undergraduates (430 in 2020), of whom 122 were new entrants (123 in 2020); and 222 full-time postgraduates (249 in 2020). The 222 postgraduates comprised 143 Doctoral students (132 in 2020), of whom 48 were new entrants (41 in 2020); and 79 non-Doctoral (predominantly Masters) students (117 in 2020). In addition there were 72 postgraduate students either writing up/under examination or part-time (76 in 2020).

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700 ��
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96
77
600 �� 96
72 67
500 153 Continuing
156 126
postgraduates
101
108
New
400 postgraduates
Continuing
undergraduates
300
New
307 307
296
272 284 undergraduates
200
100
115 118 120 123 122
0
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----- End of picture text -----

All figures as at 1 December of each year.

The breakdown by fee status for 2020 and 2021 was as follows:

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Undergraduate - Home - New	101(23%)	101(24%)
Undergraduate - Home - Continuing	256(60%)	252(59%)
Undergraduate - International - New	22(5%)	21(5%)
Undergraduate - International - Continuing	51(12%)	55(13%)
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Postgraduate - Home - New	81(33%)	55(25%)
Postgraduate - Home - Continuing	59(24%)	60(27%)
Postgraduate - International - New	72(29%)	71(32%)
Postgraduate - International - Continuing	37(15%)	36(16%)
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Until 2020-��As of the 2021-22 academic year new EU students are charged the (higher) International rate, whereas continuing EU students who started in 2020-21 or earlier are still charged the Home rate. The effect of this change in fee status for EU students can most clearly be seen in the reduction in New Postgraduates paying the Home fee, a decrease from 81 in 2020 to 55 in 2021.

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The first of the four financial statements is the Statement of Comprehensive Income and Expenditure (SOCIE). All income appears in this statement. Total income before donations and endowments was £9.33m (2020-21: £7.15m), and total income including donations and endowments was £13.92m (2020-21: £9.49m). The treatment of investment income and endowment return should be noted as explained in 3.3 below.

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Of the total of £3.57m (2020-21: £3.55m) under this heading, £3.19m (2020-21: £3.21m) was derived from student fees. These are set out in Note 1 to the accounts.

UK (and previously EU) undergraduates who are eligible for fee loans from the government-owned Student Loans Company (SLC) pay a regulated fee, which is currently £9,250 per annum for students admitted since September 2017. 50% of these fees are transferred to the University, and the College retains the other 50% (£4,625 per student). The total income to the College from this source was £1.56m (2020-21: £1.57m).

Non-UK undergraduates � and UK (and previously EU) undergraduates who are not eligible for SLC loans (generally as a result of having a first degree already) � pay an unregulated College fee, set by the College, in addition to their University fee. For first-year undergraduates in 2021-22, this fee was £9,975 per annum, which remains unchanged for the duration of their course. The equivalent fees for undergraduates starting in prior years are: £9,500 (2020-21 starters) £8,700 (2019-20 starters), £8,100 (2018-19 starters) and £7,901 (2017-18 starters). The total income to the College from such students was £670k (2020-21: £652k).

Postgraduate students pay a variety of University fees, depending on fee status and on course choice. The 31 colleges collectively receive a share of the total postgraduate fees to the University (25%, up to a cap), which is redistributed on a per capita basis. This resulted in a fee of £4,475 per postgraduate student in 2021-22 (2020-21: £4,069), amounting to a total to the College of £961k (2020-21: £986k).

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As well as student fees as set out above, the College received £107k (2020-21: £96k) from other colleges in return for Newnham academics supervising undergraduates from those colleges and for shared academic appointments. £268k (2020-21: £241k) was received as the external contribution to total awards of £392k (2020-21: £358k) paid through the Cambridge Bursary Scheme and the associated Top-Up Bursary Scheme.

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The total of this source of income was £4.09m, an increase �� Covid-affected income of £2.16m, as set out in Note 2 to the accounts. Despite this recovery, this still included a significant shortfall in commercial income as a result of the first three months of the financial year (July to September 2021) continuing to be affected by Covid-19, the period when the College normally hosts summer schools, weddings and conferences. The total for conference income of £280k in 2021-22 compares with £795k two years previously in 2019-20, a year only partially affected by Covid-19. So this represents a loss of income in the region of at least £500k.

The line in Note 2 �Accommodation � College members� shows the income from student rents. This shows a healthy increase from £1.87m in 2020-21 to £3.10m in 2021-22, representing a return to normal levels of occupancy after the reduced capacity and lock-down restrictions in place in the previous year. Undergraduate rents were £158 per week and postgraduate rents ranged from £135 to £165 per week.

In line with the return to normal room occupancy levels, the take-up ��offer (Buttery, Café, Formal Halls) by our students also returned to normal, as seen in the line in Note 2 �Catering � College members�. This shows income of £708k in 2021-22, compared with £276k in 2020-21.

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The SOCIE has two lines for these sources of income, �� sets out further detail. This is an area of the accounts which requires some explanation.

��1.21m (2020-21: £641k). Note 3a shows that £1.11m came from distributions from the Cambridge University Endowment Fund (CUEF). The remaining £102k (2020-21: £135k) is from commercial rental income and bank interest.

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The total ��ain/(loss) on investments� in the year is shown lower down the SOCIE and shows a reduction in value of -£17.86m (compared with an exceptional gain in 2020-21 of +£28.60m). The College operates a total return policy which smooths the distribution across a five-year period to acknowledge that there will be peaks and troughs of investment performance, as illustrated across these two years.

The total return policy makes available for spending an amount based on the average value of the units in the investment portfolio (excluding directly held investment properties) over the preceding five years, which allows for a smoothed approach to drawing down income. At 1 July 2021 there were 5,603,754 units held in the investment portfolio, with a unit value of £23.35 and a total value of £130.85m.

The average value of the units over the five years preceding 1 July 2021 was £17.62, so when the drawdown rate of 3.5% as stipulated in the policy was applied to this unit value (£17.62) and the

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number of units held (5,603,754), the result was a return of £3.46m. (In 2020-21 the equivalent return was £3.09m; and a further £3.50m was taken as an exceptional distribution to mitigate against the lost income over two Covid-affected financial years.)

�� split between £1.51m Unrestricted and £1.94m Restricted. However, following an accounting requirement this £3.46�� including a negative matching figure of £3.46�� line is netted off to zero in the Income section of the SOCIE.

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Other income of £462k (2020-21: £806k) is set out in detail in Note 4. For the third financial year in a �� (2020-21: £281k), which explains much of the decrease in this income line..

Another l��(previously the Department for International Development, now the Foreign, Commonwealth & Development Office) showing income of £189k (2020-21: 363k). This project, which was run out of the Margaret Anstee Centre for Global Studies based in the College, came to completion at the end of the 2021-22 financial year.

There was £78k of income relating to Roll & Development events (2020-21: £16k), as a result of increased activity after the previous Covid-affected year. In addition, £52k (2020-21: £55k) of VAT was recovered, and there was £142k (2020-21: £91k) of other income.

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Total donations and new endowments of £4.58m were received, as set out in Note 4. This was a increase on 2020-21 (£2.34m) as shown in this chart (which excludes an annual release from deferred capital grants of £51k):

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8,000
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Legacies
6,000
Donations
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4,905
4,000 ��
1,969
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2,810
2,000 690
884
2,563
2,259
1,598
1,075 853
0
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This chart shows the unpredictability of donation and legacy income while also highlighting the importance of this source of income. The College has been very fortunate to benefit in this way from the generosity of alumnae, and remains very grateful for this support. Such philanthropic income �� and research.

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The SOCIE shows operational expenditure, but excludes capital expenditure (see section 7 below). The categories of expenditure are prescribed by the RCCA format. Each line of expenditure includes a mix of Staff costs (direct and indirect) and Non-staff costs (direct and indirect). A series of breakdowns within Notes 6 to 19 sets out much of the detail.

Total operating expenditure for the year was £12.73m (2020-21: £11.52m), or £11.05m (2020-21: £9.86m) excluding depreciation of £1.68m (2020-21: £1.66m). The charge for depreciation (a noncash item) increased significantly in 2020-21 as a result of a change in the depreciation policy, whereby buildings are now depreciated over 65 years rather than 100 years.

The total of £12.73m breaks down as £6.01m on Education (2020-21: £5.29m); £5.98m on Accommodation, catering and conferences (2020-21: £5.32m); and £746k on Other (2020-21: £900k). Notes 6a and 6b set out the detail.

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Notes 7 to 9 give detailed breakdowns of the £6.01m of expenditure on education. A significant part of t�� relate to the teaching of undergraduates, in particular undergraduate supervisions, the small-group teaching that is a feature of Cambridge (whereas the costs of providing lectures fall to the University), and Note 7a shows a total cost for Teaching of £2.09m (2020-21: £1.92m). The next biggest element of education expenditure was on Scholarships and awards (for both undergraduates and postgraduates), which came to £1.68m (2020-21: £1.36m). The College is fortunate to be in a financial position to make such awards, which are largely funded by philanthropy. Note 9 gives a useful breakdown of such awards.

All students, both undergraduate and postgraduate, have a personal Tutor who is responsible for providing non-�� total cost of the Tutorial and Admissions activities as shown in Note 7a came to £1.48m (2020-21: £1.34m). Research costs come under the heading of Education, and such costs came to £520k (202021: £448k), which includes the employment costs of stipendiary Junior Research Fellows.

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Note 6a shows how the total costs of £5.98m (2020-21: £5.32m) are split between staff costs and non-staff costs, and between direct costs and indirect costs. Direct staff costs are split between Catering and Conferences in Note 10, and direct non-staff costs are split between Catering and Conferences in Note 11. Accommodation-related costs such as Housekeeping staff are included within the indirect staff costs, because these costs are split across more than one activity. The increase in costs relates mainly to a return to more normal levels of provision following the Covidaffected previous year.

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Note 6a shows how total costs of £746k (2020-21: £900k) are split between staff costs and non-staff costs, and between direct costs and indirect costs. Note 12 gives a breakdown of the direct staff

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costs, which mainly relate to the Margaret Anstee Centre, including the research project for the Foreign, Commonwealth & Development Office (FDCO), the income relating to which was referred to in section 3.4 above. Note 13 shows the direct non-staff costs, most of which also relate to the FDCO project.

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Staff costs include salaries, National Insurance, and pension costs.

The three expenditure areas (i) Education, (ii) Accommodation, catering and conferences, and (iii) Other expenditure, all include both direct staff costs and indirect staff costs. Staff costs are analysed in various ways in the Notes. Notes 6a and 17a show how total staff costs of £5.71m (2020-21: £5.58m) are allocated across the three expenditure areas, and some detail is given in Notes 7a and 8 (Education), Note 10 (Accommodation, catering and conferences) and Note 12 (Other) on the direct staff costs in each of those expenditure areas. It is to Note 18 that the reader must turn to understand all the other elements of staff costs which are allocated across the three expenditure areas. Note 18 shows the cost o�� Gardens, Bursary, Development and Communications.

Further analysis is given in Note 20, which shows pensions costs of £781k (2020-21: £780k) and National Insurance costs of £338k (2020-21: £328k), on top of salary costs of £4.32m (2020-21: £4.21m). Headcount figures (both FTE and non-FTE) are shown. These include casual staff as well as permanent staff: a reduction in casual staff had been seen in 2020-21, with an increase back to more normal levels in 2021-22.

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The three lines (i) Education, (ii) Accommodation, catering and conferences, and (iii) Other expenditure, all include both direct non-staff costs and indirect non-staff costs. Non-staff costs are analysed in various ways in the Notes. Note 6a shows how total non-staff costs of £7.02m (including depreciation of £1.68m) (2020-21: £5.94m, including depreciation of £1.66m) are allocated across the three expenditure areas, and some detail is given in Notes 7a and 9 (Education), Note 11 (Accommodation, catering and conferences) and Note 13 (Other) on the direct non-staff costs in each of those expenditure areas. Note 19 sets out the totals for the indirect non-staff costs.

Among the indirect non-staff costs of £2.48m (2020-21: £2.01m), the largest area of expenditure was maintenance, at £555k (2020-21: £688k). This excludes capital expenditure, which does not appear in the SOCIE but is shown in Note 24 to the Balance Sheet.

The next largest cost was utilities (electricity, gas, water) at £517k (2020-21: £369k). The College buys its gas and electricity through a consortium of colleges, with price fixes and hedges in place to counter fluctuations in prices. Even with such purchasing strategies in place, and despite the large (40%) increase from 2020-21 to 2021-22 already, energy costs are expected to increase significantly in 2022-23.

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As well as £12.73m (2020-21: £11.52m) of operating expenditure, the total expenditure of £15.62m (2020-21: £12.35m) includes three other lines as described below.

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The College participates in two defined benefit pension schemes, the Cambridge Colleges Federated Pension Scheme (CCFPS), and the Universities Superannuation Scheme (USS). As at 30 June 2022 there were 3 active members in CCFPS and 136 active members in USS (30 June 2021: 4 in CCFPS, 156 in USS). The funding position of these two schemes are set out in detail in notes 42a (CCFPS) and 42b (USS). Pensions represent a significant cost to the College: employer contributions of £781k were made in the year (see Note 21) (2020-21: £780k).

The total figure for the movement to pension provisions included under Expenditure in the SOCIE is +£1.82m (2020-21: -£202k). This comprises £31k for the CCFPS scheme and £1.79m for the USS scheme (2020-21: £45k for CCFPS, -£248k for USS).

In relation to CCFPS, the actuarial consultants Cartwright Group Ltd are engaged to report on the financial position of the scheme at the year end. They have calculated a total liability of £772k as at 30 June 2022 (30 June 2021: £1.18m). Of this increase of £405k, -£31k is recognised as expenditure (within the £1.82k as above) and £436��

�� the 31 March 2020 actuarial valuation (which was the last formal completed actuarial valuation as at 30 June 2022) as the basis to use to model the liability as at the year end. This resulted in a provision of £3.17m (2020-21: £1.38m), an increase of £1.79m, which is recognised as expenditure.

The combined CCFPS and USS pension provision as shown on the balance sheet and in Notes 21 & 31 was £3.94m as at 30 June 2022, an increase of £1.38m on the equivalent figure of £2.56m at 30 June 2021.

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The College needs to repay loan interest in the order of £1m every year for a number of years (see Notes 22 and 30). The figure of £1.01m for 2021-22 (2020-21: £1.02m) comprises £182k for the Buttery/Kitchen loan (2020-21: £197k) and £824k for the two private placement bonds (2020-21: £824k) as described below.

The College took out a 25-year bank loan in 2007 to fund the Buttery/Kitchen project, repayable in 2032. In addition to the interest costs of £182k (2020-21: £197k), capital repayments of £250k were made (2020-21: £236k). The remaining balance on the loan at the end of the year was £3.34m (30 June 2021: £3.59m).

The College issued two private placement bonds, one for £11.58m in 2013 and one for £7.00m in 2014, with three repayment dates in 2043, 2044 and 2053, and the combined coupon (interest) payments come to £824k per year. These are set out in Note 30.

The proceeds of these private placements were used to part-fund the new Dorothy Garrod Building and its associated fixtures and fittings, which cost a combined total of £34.87m. The coupon payments on these two private placements will therefore remain £824k per year until 2043 (when the first £6.43m of capital has to be repaid). Reduced coupon payments will continue until 2053 (when the final £5.15m of capital has to be repaid).

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The Colleges Fund is a scheme whereby the wealth of all 31 colleges is assessed each year. The better-endowed colleges pay into a central fund, which is then disbursed to the less-well-endowed

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colleges. Note 23 shows that ��contribution to this fund was £63k, which was an �� contributions in the one financial year (£27k for 2020-21 and £36k for 2021-22).

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The total ��ain/(loss) on investments� in the year shows a reduction in value of -£17.86m (compared with an exceptional gain in 2020-21 of +£28.60m), as shown in Note 3. The College�� total return policy smooths the distribution across a five-year period to acknowledge that there will be peaks and troughs of investment performance, as illustrated across these two years. The College is a perpetual investor, taking a very long-term view of its investment portfolio, and such shorter-term increases and decreases in value are to be expected.

This investments line masks the deficit of -£1.70m incurred in the year �� (2020-21: -£2.86m)�� showing £9.33m (2020-21: £7.15m) �� showing £12.73m (2020-21: £11.52m), then one starts to understand even more clearly that there is �� economic model relies on investment gains and philanthropy to bridge that gap. The total return �� and it is this regular, annual drawdown that allows the College to carry an operational deficit each year. Hence the bottom line of the SOCIE � �� needs to be ��

Investments are considered in more detail in 8.2 below.

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The Statement of Comprehensive Income and Expenditure (SOCIE) is not in fact comprehensive in terms of expenditure, since capital expenditure is excluded. It is to the first line of the Balance Sheet, and its related Note 24 (Fixed Assets), that one turns to see the capital expenditure in the year. This shows Additions of £985k (2020-21: £1.50m) including £766k on building refurbishment projects (Peile Hall and the postgraduate house at 6 Wordsworth Grove); £183k on IT network infrastructure; and £20k on books.

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After the SOCIE, the next two statements in the accounts are the Statement of Changes in Reserves and the Balance Sheet. Starting with the Balance Sheet:

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Note 24 sets out the movements in this asset class. The capital expenditure in the Additions line has been explained in section 7 above. The Disposals figure of £22k (2020-21: £204k) was for the writingoff of an old IT system and books.

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Note 25 shows investments of £112.68m (2020-21: £133.62m), with £100.64m (89%) held in quoted equities (2020-21: £118.04m). The unit value in the investment portfolio (see 3.3 above) at 30 June 2022 was £19.74, a decrease of 15.5% on the opening unit value of £23.35.

The total investment portfolio (including directly-owned property) was made up follows:

��

	��	��
	��	��
Equities	69.3%	74.5%
Bonds	2.1%	7.1%
Property	11.7%	8.2%
Private equity	10.7%	7.5%
Absolute return	6.2%	2.7%
��	��	��

As at 30 June 2022, 30% of the portfolio was passively managed, and 70% was actively managed. The passive part of the portfolio was held in three funds (two equity funds and one bond fund, although the latter was sold in March 2022) managed by State Street Global Advisors; and the active part of the portfolio was managed by the following: Baillie Gifford (Stewardship Select Fund), Cambridge University Endowment Fund (CUEF), Partners Capital, Cambridge Associates (Cambridge University Feeder Fund) and Savills (Charity Property Fund).

The total return on the investment portfolio (excluding directly-owned property) was -12.8%, following an exceptional 24.0% the previous year.

��

The Balance Sheet and the Statement of Changes in Reserves show total reserves decreasing from £254.44m (at 30 June 2021) to £235.26m (at 30 June 2022). This decrease is mainly attributed to the decrease in value of the investments portfolio.

��

The fourth and final statement in the accounts is the Cash Flow Statement. This shows an increase of £2.74m in cash over the year from £2.29m to £5.04m. The cash flow is explained in detail in Notes 34 to 36.

��

�� end amounted to £152.96m (2021: £161.11m) and are �� which are used for academic and residential purposes � and by part of the investment portfolio. Restricted reserves at the year end amounted to £82.30m (2021: £93.32m) and are represented in the balance sheet by endowment funds for a number of educational purposes, as set out in Notes 32 and 33. The College Council believes that reserves on this scale are necessary for the College to meet its charitable objectives and that they provide the stability for the institution to operate in perpetuity. The College Council is mindful to maintain an equitable balance between the interests of current members of the College and future generations ��.

��

As this report is written in the Michaelmas term 2022, a fresh intake of undergraduate and postgraduate students has arrived and the College feels like it is returning to normal after the pandemic. A few individuals still choose to wear face coverings, and another round of Covid vaccinations is on offer, but all induction meetings and social events are in person and the College as a community is in evidence. However, Covid-19 is still present in the wider community as winter approaches, and nothing is being taken for granted. It is very much hoped that �� and its normal routines will not be affected

��

Uncertainty over energy costs (largely arising from the Russian invasion of Ukraine) is affecting everyone including organisations such as Newnham College, and although the College is part of an intercollegiate buying consortium which negotiates a mixture of fixed-price contracts and traded contracts, all this achieves is short-term certainty rather than any long-term immunity from significant price increases. The ��plans to degasify the estate become even more pressing in such a situation. In the meantime, a priority is to reduce the use of both gas and electricity wherever possible, and the whole College community has a role to play in achieving this aim.

At the time of writing, inflation is at 10.1% (CPI to September 2022), partly (but not wholly) fuelled by the impact of the Ukraine war. High inflation affects every member of the College community (and their families), and every aspect of ��There are limits to the pay increases the College can offer as an employer, and there are limits to the increases in charges that the College can pass on to its consumers, in particular its students. For example, rents for student bedrooms increased from 2021-22 to 2022-23 by 4.4%, accompanied by a 25% increase (from £20 to £25 per week) in the automatic rent bursary given to over a third of our undergraduates who are in receipt of bursary support.

The regulated fee paid by most of our undergraduates has remained at £9,250 per year since 2012, having been £9,000 since 2010. This means that the value has eroded in real terms each year, against a background of rising costs for the university sector. This remains a key risk to the whole sector.

The increasing costs of the main defined benefit pension scheme in which the College participates (USS) also continue to be a concern, and there remains unrest among the Unions which could lead to further industrial action.

The impact of Brexit continues to be felt acutely in terms of staffing in departments such as Housekeeping and Catering, where lots of EU staff have left, and vacancies have been very hard to fill. The College also continues to experience supply chain and delivery issues. All of this is creating ��, as well as on pricing and costs. Fewer EU students are applying to study at British universities, and Cambridge is not immune, as can be seen in the reduction in new �� fee rate.

��

Celebrations of ��[th] anniversary in 2021-22 have come to a close, and the College now turns towards a major fundraising campaign during the �� Principalship. The three themes of the campaign are: (i) supporting academic learning and research; (ii) supporting our students; and (iii) achieving carbon net zero.

The ��continues, with a focus on energy conservation and energy supply. Two postgraduate houses have now been degasified by switching to air-source heat pumps, and this represents the first step in a long-term programme of energyefficiency projects, which will be supported by funds raised under theme (iii) of the campaign as above. Such refurbishment projects are not solely about energy, however, and are equally about improving the College as an environment in which to live, work and study.

Mr Christopher Lawrence Bursar

17 November 2022

��

The following statement is provided by the Trustees to enable readers of the financial statements to obtain a better understanding of the arrangements in the College for the management of its resources and for audit.

The College is a registered charity (registered number 1137512) and subject to regulation by the Charity Commission for England and Wales. The members of the Council are the charity trustees and are responsible for ensuring compliance with charity law.

The Trustees are advised in carrying out their duties by a number of Committees, including: Academic Planning, Buildings Estate, Development, Environmental & Sustainability, Finance, Grants & Awards, IT, Library, Safety, and Stipends & Benefits.

The principal College officers are the Principal, Vice-Principal, Senior Tutor and Bursar.

�� internal systems of financial and other controls; to advise the Trustees on the appointment of the external Auditor; to consider reports submitted by the Auditor; to monitor the implementation of recommendations made by the Auditor; to monitor risk management and control arrangements; and to make regular reports to the Trustees by way of minutes of its meetings. Membership of the Finance Committee includes all the principal College officers, the Domestic Bursar, and other members of the Governing Body.

There is a Register of Interests of Trustees. Declarations of interest are made systematically at all Governing Body, �� June 2022 are set out on page 5.

��

The Trustees are responsible for maintaining a sound system of internal control that supports the achievement of policy, aims and objectives while safeguarding the public and other funds and assets for which the Governing Body is responsible, in accordance ��

The system of internal control is designed to manage rather than eliminate the risk of failure to achieve policies, aims and objectives; it therefore provides reasonable but not absolute assurance against material misstatement or loss.

The system of internal control is designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. This process was in place for the year ended 30 June 2021 and up to the date of approval of the financial statements.

The Trustees are responsible for reviewing the effectiveness of the system of internal control.

��s of the system of internal control is informed by the work of the various Committees, the Bursar, and the College officers, who have responsibility for the development and maintenance of the internal control framework, and by comments made by the external Auditor in their management letter and other reports.

��

The College Council is responsible for preparing the financial statements each year in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted �� The Colle�� Council to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the College and of the surplus or deficit of the College for that period.

In accordance with the College's Statutes , the College Council is responsible for the administration and management of the College's affairs. It is responsible for ensuring that there is an effective system of internal control and that accounting records are properly kept which disclose with reasonable accuracy at any time the financial position of the College.

��Governing Body�� responsibilities in relation to the accounts, including the appointment of the auditors. Clause 5 of ��

In causing the financial statements to be prepared, the College Council has ensured that:

�suitable accounting policies are selected and applied consistently;
�judgements and estimates are made that are reasonable and prudent;
�applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.

The College Council is satisfied that the College has adequate resources to continue in operation for the foreseeable future. The financial statements are accordingly prepared on a going concern basis.

The College Council has taken reasonable steps to ensure that there are appropriate financial and management controls in place to safeguard the assets of the College and prevent and detect fraud and other irregularities. Any system of internal financial control, however, can only provide reasonable, not absolute, assurance against material misstatement or loss.

The College Council is responsible for the maintenance and integrity of the corporate and financial �� preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

��

��OR’S��

��

�� (the 'group') for the year ended 30 June 2022 which comprise the Consolidated Statement of Comprehensive Income and Expenditure, the Consolidated Statement of Changes in Reserves, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

�� the group's incoming resources and application of resources, including its income and expenditure, for the year then ended;
�have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
�have been prepared in accordance with the requirements of the Charities Act 2011 and the Statutes of the University of Cambridge; and
�the contribution due from the College to the University has been correctly computed as advised in the provisional assessment by the University of Cambridge and in accordance with the provisions of Statute G,II, of the University of Cambridge.

��

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and �� responsibilities for the audit of the financial statements section of our report. We are independent of the group and College in accordance with the ethical requirements that are relevant to our audit �� 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.

��

In auditing the financial statements, we have concluded that the trustees' 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, individuall�� financial statements are authorised for issue.

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

��

The other information comprises the information included in the report of the College Council and Governing Body, other �� The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other

��

��OR’S��

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

We have nothing to report in this regard.

��

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

�the information given in the financial statements is inconsistent in any material respect with the report of the College Council and Governing Body; or
�sufficient accounting records have not been kept; or
�the financial statements are not in agreement with the accounting records and returns; or
�we have not received all the information and explanations we require for our audit.

��

As explained mo��on page 20, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a �� 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:

We gained an understanding of the legal and regulatory framework applicable to the College and how it operates and considered the risk of the College not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements.

��

INDEPENDENT AUDITOR’S REPORT TO THE COLLEGE COUNCIL AND GOVERNING BODY (continued)

The risks were discussed with the audit team and we remained alert to any indications of noncompliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following:

We reviewed systems and procedures to identify potential areas of management override risk. In particular, we carried out testing of journal entries and other adjustments for appropriateness.
We reviewed key authorisation procedures and decision-making processes for any unusual or one-off transactions.
We reviewed minutes of Finance, College Council and Governing Body meetings and agreed the financial statement disclosures to underlying supporting documentation.
We have made enquiries of management and officers of the College regarding laws and regulations applicable to the organisation.
We reviewed the risk management processes and procedures in place including a review of the risk register and reporting to the College Council.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

�� at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-ofauditors-responsibilities-for-audit.aspx��

��

This report is made solely to the College Council and Governing Body, in accordance with �� statutes, the Statutes of the University of Cambridge and part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the College trustees those matters we are required to state t�� other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the College Council and Governing Body as a body, for our audit work, for this report, or for the opinions we have formed.

PRICE BAILEY LLP Chartered Accountants and Statutory Auditors

Tennyson House Cambridge Business Park Cambridge CB4 0WZ

Date: 14 December 2022

��

These financial statements have been prepared in accordance with the provisions of the Statutes of the College and of the University of Cambridge, using the Recommended Cambridge College Accounts (RCCA) format; and applicable United Kingdom Accounting Standards, including Financial Reporting Standard 102 (FRS102) and the Statement of Recommended Practice (SORP): Accounting for Further and Higher Education issued in 2019.

The Consolidated Statement of Comprehensive Income and Expenditure includes activity analysis in order to demonstrate that all fee income is spent for educational purposes. The analysis required by the SORP is set out in Note 7.

The College is a public benefit entity and therefore has applied the relevant public benefit requirement of the applicable UK laws and accounting standards.

��

The financial statements have been prepared under the historical cost convention, modified in respect of the treatment of investments and certain operational properties which are included at valuation.

��

The consolidated financial statements include the College and its subsidiary undertakings. Details of the subsidiary undertakings are set out in Note 38. Intra-group balances are eliminated on consolidation. The activities of student societies have not been consolidated.

A separate balance sheet and related notes for the College are not included in the accounts because the subsidiary companies donate their profits to the College each year. The balance sheet for the College alone would not be materially different from the one included in the accounts.

��

Academic fees

Academic fees are recognised in the period to which they relate and include all fees chargeable to students or their sponsors.

Grant income

Grants received from non-government sources (including research grants from non-government sources) are recognised within the Consolidated Statement of Comprehensive Income and Expenditure when the College is entitled to the income and performance-related conditions have been met.

Income received in advance of performance-related conditions is deferred on the balance sheet and released to the Consolidated Statement of Comprehensive Income and Expenditure in line with such conditions being met.

Donations and Endowments

Non-exchange transactions without performance-related conditions are donations and endowments. Donations and endowments with donor-imposed restrictions are recognised within the Consolidated Statement of Comprehensive Income and Expenditure when the College is entitled to the income. Income is retained within restricted reserves until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer.

��

Donations and endowments with restrictions are classified as restricted reserves with additional disclosure provided within the notes to the accounts.

There are four main types of donations and endowments with restrictions:

Restricted donations � the donor has specified that the donation must be used for a particular objective.
Unrestricted permanent endowments � the donor has specified that the fund is to be permanently invested to generate an income stream for the general benefit of the College.
Restricted expendable endowments � the donor has specified a particular objective and the College can convert the donated sum into income.
Restricted permanent endowments � the donor has specified that the fund is to be permanently invested to generate an income stream to be applied to a particular objective.

Donations with no restrictions are recorded within the Consolidated Statement of Comprehensive Income and Expenditure when the College is entitled to the income.

Legacy Income

For legacies, entitlement is taken on a case by case basis as the earlier of the date on which the College is aware that probate has been granted and either: the estate has been finalised, final estate accounts have been received and notification has been made by the executors to the College that a distribution will be made; or when a notification has been made by the executors to the College of an intention to make a distribution prior to the end of the financial year and subsequently that distribution is received from the estate after the year end. Where legacies have been notified to the College, or the College is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Investment income and change in value of investment assets

Investment income and change in value of investment assets is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms or other restrictions applied to the individual endowment fund.

Total return

�� with the investment portfolio, and the units are revalued each quarter taking account of investment performance. Under this total return policy, the average of the unit values at the end of each quarter for the preceding five years is calculated. 3.5% of this average unit value is applied to the number of units held at 1 July, and this is the amount of endowment return transferred shown as income in the Statement of Comprehensive Income and Expenditure. The whole total return is shown in the same statement as the gain/(loss) on investments.

Other income

Other income is received from a range of activities including accommodation, catering, conferences and other services rendered.

Cambridge Bursary Scheme and CBS Top-up Bursary Scheme

In 2021-22, payment of the Cambridge Bursaries to eligible students was made directly by the Student Loans Company (SLC). As a consequence the College reimbursed the SLC for the full amount paid to their eligible students and the College subsequently received contributions from the University of Cambridge and from Trinity College towards this payment. There is also a Top-up Bursary Scheme, also supported by Trinity College.

��

The net payment by the College of £124k is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows:

Income (Note 1) £268k Expenditure (Note 9) £392k

��

Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at year end rates or, where there are forward foreign exchange contract, at contract rates. The resulting exchange differences are dealt with in the determination of the comprehensive income and expenditure for the financial year.

��

Land and buildings

�� the basis of their depreciated replacement cost. A valuation on 30 June 2019 was carried out by Gerald Eve LLP. Freehold buildings are depreciated on a straight line basis over their expected useful economic life of 65 years (previously this was 100 years). On revaluation, the expected life of a building is re-set to 65 years. Freehold land is not depreciated and the value of the land comprising ��

Where land and buildings are acquired with the aid of specific bequests or donations they are capitalised and depreciated as above. The related benefactions are credited to a deferred capital account and are released to the Income and Expenditure Account over the expected useful economic life of the related asset on a basis consistent with the depreciation policy.

Finance costs which are directly attributable to the construction of buildings are capitalised as part of the cost of those assets.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying amount of the fixed asset may not be recoverable.

�� other direct costs incurred to the balance sheet date. They are not depreciated until they are brought into use.

Maintenance of properties

The cost of routine maintenance is charged to the Consolidated Statement of Comprehensive Income and Expenditure as it is incurred.

Furniture and equipment

Furniture and equipment costing less than £10,000 per individual item or group of related items is written off in the year of acquisition. All other assets are capitalised and depreciated over their expected useful life as follows:

Books, equipment, furniture and fittings 5%, 10% and 25% per annum Catering heating and ventilation equipment 5% per annum Major computer software 10% per annum Computer equipment 25% per annum

��

Heritage Assets

The College holds and conserves a number of collections, artefacts and other assets of historical, artistic or scientific interest. Heritage assets acquired before 1 July 1999 have not been capitalised since reliable estimates of cost or value are not available on a cost-benefit basis. Acquisitions since 1 July 1999 have been capitalised at cost or, in the case of donated assets, at expert valuation on receipt, to the extent to which they are material. Heritage assets have not been depreciated since their long economic life and high residual value mean that any depreciation would not be material.

��

Fixed asset investments are included in the balance sheet at fair value, except for investments in ��balance sheet at cost and eliminated on consolidation.

��

Stocks are stated at the lower of cost and net realisable value after making provision for slowmoving and obsolete items.

��

Provisions are recognised when the College has a present legal or constructive obligation as a result of a past event; it is probable that a transfer of economic benefit will be required to settle the obligation; and a reliable estimate can be made of the amount of the obligation.

��

A contingent liability arises from a past event that gives the College a possible obligation whose existence will only be confirmed by the occurrence or otherwise of uncertain future events, not wholly within the control of the College. Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is not probable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.

A contingent asset arises where an event has taken place that gives the College a possible asset whose existence will only be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of the College.

Contingent assets and liabilities are not recognised in the balance sheet but are disclosed in the notes.

��

The College has elected to adopt Sections 11 and 12 of FRS 102 in respect of the recognition, measurement and disclosure of financial instruments. Financial assets and liabilities are recognised when the College becomes party to the contractual provision of the instrument and they are classified according to the substance of the contractual arrangements entered into.

A financial asset and a financial liability are offset only when there is a legally enforceable right to set off the recognised amounts and an intention either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

��

Basic financial assets include trade and other receivables, cash and cash equivalents and investments in commercial paper (i.e. deposits and bonds). These assets are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest rate method. Financial assets are

��

assessed for indicators of impairment at each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.

For financial assets carried at amortised cost the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows, discounted at ��

Other financial assets, including investments in equity instruments, which are not subsidiaries or joint ventures, are initially measured at fair value which is typically the transaction price. These assets are subsequently carried at fair value and changes in fair value at the reporting date are recognised in the Statement of Comprehensive Income. Where the investment in equity instruments is not publicly traded and where the fair value cannot be reliably measured, the assets are measured at cost less impairment. Investments in property or other physical assets do not constitute a financial instrument and are not included.

Financial assets are de-recognised when the contractual rights to the cash flows from the asset expire, or are settled, or substantially all of the risks and rewards of ownership are transferred to another party.

��

Basic financial liabilities include trade and other payables, bank loans and intergroup loans. These liabilities are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost using the effective interest rate method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest rate method.

Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date the derivative contract is entered into and are subsequently re-measured at their fair value at the reporting date. Changes in the fair value of derivatives are recognised in the Consolidated Statement of Comprehensive Income and Expenditure in finance costs or finance income as appropriate, unless they are included in a hedging arrangement.

To the extent that the College enters into forward foreign exchange contracts which remain unsettled at the reporting date the fair value of the contracts is reviewed at that date. The initial fair value is measured as the transaction price on the date of inception of the contracts. Subsequent valuations are considered on the basis of the forward rates for those unsettled contracts at the reporting date. The College does not apply any hedge accounting in respect of forward foreign exchange contracts held to manage cash flow exposures of forecast transactions denominated in foreign currencies.

Financial liabilities are de-recognised when the liability is discharged, cancelled, or expires.

��

The College is a registered charity (number 1135712) and also a charity within the meaning of Section 467 of the Corporation Tax Act 2010. Accordingly, the College is exempt from taxation in respect of income or capital gains received within the categories covered by Sections 478 to 488 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes.

The College receives no similar exemption in respect of Value Added Tax.

��

The College is liable to be assessed for Contribution under the provisions of Statute G,II of the University of Cambridge. Contribution is used to fund grants to colleges from the Colleges Fund. The liability for the year is advised to the College by the University based on an assessable amount ��

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The College participates in the Universities Superannuation Scheme (USS) and the Cambridge Colleges Federated Pension Scheme (CCFPS). The schemes are both defined benefit schemes which are externally funded and contracted out of the State Second Pension (S2P). Each fund is valued every three years by professionally qualified independent actuaries.

The assets and liabilities of the CCFPS are held separately. Pension costs are assessed in accordance with the advice of the actuary, based on the latest actuarial valuation of the scheme, and are accounted for on the basis of charging the cost of providing pensions over the period during which the institution benefits from the employees' services.

The assets of the USS are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The College is therefore exposed to actuarial risks associated with other �� the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 �Employee benefits�, the College therefore accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme. Since the institution has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the College recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) with related expenses being recognised through the income and expenditure account.

��

Short-term employment benefits such as salaries and compensated absences are recognised as an expense in the year in which the employees render service to the College. Any unused benefits are accrued and measured as the additional amount the College expects to pay as a result of the unused entitlement.

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Reserves are allocated between restricted and unrestricted reserves. Endowment reserves include balances which, in respect of endowment to the College, are held as permanent funds, which the College must hold to perpetuity.

Restricted reserves include balances in respect of which the donor has designated a specific purpose and therefore the College is restricted in the use of these funds.

��

�� assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. These judgements, estimates and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results.

Management consider the areas set out below to be those where critical accounting judgements have been applied and the resulting estimates and assumptions may lead to adjustments to the future carrying amounts of assets and liabilities.

Income recognition � Judgement is applied in determining the value and timing of certain income items to be recognised in the accounts. This includes determining when performance-related conditions have been met and determining the appropriate recognition timing for donations, bequests and legacies.

Useful lives of property, plant and equipment � Property, plant and equipment represent a s�� are determined at the time the asset is acquired and reviewed regularly for appropriateness. The lives are based on historical experiences with similar assets, professional advice and anticipation of future events. Details of the carrying values of property, plant and equipment are shown in Note 9.

Retirement benefit obligations � The cost of defined benefit pension plans are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long term nature of these plans, such estimates are subject to significant uncertainty. Further details are given in Notes 42a and 42b.

Management are satisfied that the Universities Superannuation Scheme meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the funding plan in existence at the date of approving the accounts.

As the College is contractually bound to make deficit recovery payments to USS, this is recognised as a liability on the balance sheet. The provision is currently based on the USS deficit recovery plan agreed after the 2020 actuarial valuation, which defines the deficit payment required as a percentage of future salaries until 2028. These contributions will be reassessed within each triennial �� salary inflation, changes in staff numbers and the prevailing rate of discount. Further details are set out in Note 42b.

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

��

��Finance Committee and Council have reviewed the budget for 2022-23 and also a fiveyear projection through to 2027-28. At the start of the 2022-23 academic year, student numbers are on target, and therefore both fee income and accommodation income are on target. Conference business is picking up once again, and the expectation is that it will be back to pre-Covid levels from the start of the 2022-23 financial year.

As a result of its assessment of the ��, the College Council has �� concern assumption within these financial statements. The College Council confirms the College's ability to continue as a going concern.

��

Consolidated Statement of Comprehensive Income and Expenditure

onsolidated Statement of Comprehensive Income and Expenditure
ar Ended 30 June 2022 �� � � � � � � � �� �� �� �� �� �� � �� Income �� �� �� �� �� Total income before donations and endowments �� �� Total income Expenditure �� �� �� Total operating expenditure �� �� �� Total expenditure ��eficit) before other gains and losses �� ��(�eficit) �� Other comprehensive income �� Total comprehensive income for the year	Unrestricted Restricted Endowment Total £000 £000 £000 £000 �� �� � �� �� � � �� �� � � �� �� �� �� � �� � � �� 2021-22	Unrestricted Restricted Endowment Total £000 £000 £000 £000 �� �� � �� �� � � �� �� � � �� �� �� �� � �� �� � �� 2020-21
	10,578 2,210 (3,456) 9,332 �� �� � �� � � �� ��	11,400 2,338 (6,585) 7,153 �� �� � �� � � �� ��
	14,003 2,463 (2,551) 13,915	12,874 2,738 (6,122) 9,490
	�� �� � �� �� � � �� �� � � ��	�� �� � �� �� � � �� �� �� � ��
	1�,�� �� - 12,730 �� � � �� �� � � �� �� � � ��	9,293 2,222 - 11,515 �� � � �� �� � � �� �� � � ��
	1�,�50 ��67 - 15,617	10,128 2,222 - 12,350
	�� (2,551) (1,702) �� �96 �� �� ��	2,746 516 (6,122) (2,860) �� �� �� ��
	(�,�39) (�,�43) (8,580) (19,562)	11,147 3,548 11,047 25,742
	�� � � ��	�� � � ��
	(8,�02) (��43) (8,580) (19,125)	11,631 3,548 11,047 26,226

Year Ended 30 June 2022

��

Consolidated Statement of Changes in Reserves

Year Ended 30 June 2022

At 1 July 2021 (Deficit) from income and expenditure statement Other comprehensive income/(expenditure) Release of deferred capital grants Depreciation on buildings charged to revaluation reserve At 30 June 2022 At 1 July 2020 Surplus/(deficit) from income and expenditure statementOther comprehensive income/(expenditure) Release of deferred capital grants Depreciation on buildings charged to revaluation reserve Movement between Funds At 30 June 2021	Revaluation Total Unrestricted Restricted Endowment reserve £000 £000 £000 £000 £000 72,939 17,720 75,603 88,173 254,435 (��39) (��) (8,580) - (19,562) 436 - - - 436 (51) - - - (51) 875 - - (875) - Income and expenditure reserve
	65,661 15,277 67,023 87,298 235,258
	60,413 14,290 64,477 89,080 228,260 11,147 3,548 11,047 - 25,742 484 - - - 484 (51) - - - (51) 907 - - (907) - 39 (118) 79 - -
	72,939 17,720 75,603 88,173 254,435

��

Consolidated Balance Sheet

At 30 June 2022

Note Non-current assets Fixed assets 24 Investments 25 Total non-current assets Current assets Stocks 26 Trade and other receivables 27 Cash and cash equivalents 28 Total current assets Creditors: amounts falling due within one year 29 Net current assets Total assets less current liabilities Creditors: amounts falling due in more than one year 30 Provisions Pension provisions 31 Total net assets Restricted reserves Income and expenditure reserve - endowment reserve 32 Income and expenditure reserve - restricted reserve 33 Unrestricted reserves Income and expenditure reserve - unrestricted Revaluation reserve Total reserves	2022 £000 142,807 112,679 255,486 80 1,794 5,038 6,912 (1,543) 5,369 260,855 (21,654) (3,942) 235,259 67,023 15,277 82,300 65,661 87,298 152,959 235,259	2021 £000 143,499 133,617
		277,116 93 860 2,294
		3,247 (1,446)
		1,801
		278,917 (21,921) (2,561)
		254,435
		75,603 17,720
		93,323
		72,939 88,173
		161,112

		254,435

These financial statements were approved by Newnham College Governing Body on 17 November 2022 and signed on its behalf by:

Miss Alison Rose (Principal)

Mr Christopher Lawrence (Bursar)

The notes on pages 3� to 5� form part of these accounts. ��

��

Consolidated Cash Flow Statement

Year Ended 30 June 2022

Note Net cash inflow/(outflow) from operating activities 34 Cash flows from investing activities 35 Cash flows from financing activities 36 Increase/(Decrease) in cash and cash equivalents in the year Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year	2021-22 2020-21 £000 £000 669 (1,326) 3,332 572 (1,257) (1,257)
	2,744 (2,011)
	2,294 4,305 5,038 2,294

The notes on pages 3� to 5� form part of these accounts.

��

Notes to the Accounts

1. ACADEMIC FEES AND CHARGES

CADEMIC FEES AND CHARGES College fees: Fee income received at the Regulated Undergraduate rate (a) Fee income received at the Unregulated Undergraduate rate (b) Fee income received at the Postgraduate rate (c) Recoveries from other Colleges - teaching Recoveries - shared appointments Contribution towards Cambridge Bursary & Top-up Schemes (a) fee per student: £4,625 for undergraduates starting since 2017-18	2021-22 £000 3,568 61 268 46 1,562 670 961 3,193	2020-21 £000 1,572 652 986
		52 241 44 3,210
		3,547

(a) fee per student: £9,975 for undergraduates starting in 2021-22 (2020-21: £9,500) (2019-20: £8,700) (2018-19: £8,100) (c) fee per student: £4,475 (2020-21: £4,069)

2. INCOME FROM ACCOMMODATION, CATERING AND CONFERENCES Accommodation College members Conferences Catering College members Conferences 3. INVESTMENT RETURN AND INVESTMENT INCOME 3a. Analysis Total return contribution (see note 3b) Quoted securities CUEF distributions Freehold land and buildings Interest Less: Excess of total return over investment income received 3b. Summary of total return Income from: Freehold land and buildings Quoted and other securities and cash Gains on investment assets Quoted and other securities (see note 25) Revaluation of USD bank account Investment management costs - quoted securities (see note 3c) Total return for the year Total return transferred to income and expenditure reserve (see note 3a) Total return for year included within Statement of Comprehensive Income and Expenditure	2021-22 £000 2021-22 £000 (16,648) (3,456) (20,104) (17,832) (29) (17,859) 2 100 1,112 1,212 2 (3,456) 1,212 3,456 1,110 100 - 708 139 4,090 3,102 141	2020-21 £000 276 11 1,872 -
		2,159
		2020-21 £000 5 (6,585) 6,585 506 130 -
		641
		130 511
		641
		28,639 (37) -
		28,602
		29,243
		(6,585)
		22,658

��

Notes to the Accounts

3. INVESTMENT RETURN AND INVESTMENT INCOME (continued) 3c. Investment management costs Quoted securities Freehold land and buildings 4. OTHER INCOME Roll & Development events Contribution towards salary costs VAT recoverable Research grant from DfID/FCDO Coronavirus Job Retention Scheme grant Other 5. DONATIONS, LEGACIES AND NEW ENDOWMENTS Unrestricted donations Release from deferred capital grants Restricted donations New endowments Legacies Donations Release from deferred capital grants 6a. OPERATING EXPENDITURE - 2021-22 Staff - direct Staff - indirect (see note 18) Total staff Non-staff - direct Non-staff - indirect (see note 19) Depreciation Total non-staff Total	2021-22 £000 2021-22 £000 2021-22 £000 £000 £000 £000 4,583 51 253 905 61 462 3,374 189 - 83 19 77 52 29 1,969 2,563 Other (see notes 12 & 13) Accomm, Catering and conferences (see notes 10,11 & 14) 266 894 Education (see note 7a) 1,512 51 4,583 1,746 137 1,153	2020-21 £000 2020-21 £000 40 363 281 51 18 16 55 37
		806
		2020-21 £000 51 401 464 1,423
		2,339
		690 1,598 51
		2,339
		£000 Total 2,672 3,036
	2,050 1,525 84 1,216 42 872 419 2,640 403 597 217 2,665	2,481 1,677 5,708 2,864
	3,338 343 3,341	7,022
	6,006 5,978 746	12,730

��

Notes to the Accounts

6b. OPERATING EXPENDITURE - 2020-21 Staff - direct Staff - indirect (see note 18) Total staff Non-staff - direct Non-staff - indirect (see note 19) Depreciation Total non-staff Total 7a. EDUCATION EXPENDITURE - 2021-22 Teaching Tutorial Admissions Research Scholarships and awards Other educational facilities Total 7b. EDUCATION EXPENDITURE - 2020-21 Teaching Tutorial Admissions Research Scholarships and awards Other educational facilities Total	£000 Staff direct (see note 8) 940 106 197 262 - 7	£000 £000 £000 £000 Education (see note 7b) Accomm, Catering and conferences (see notes 10,11 & 14) Other (see notes 12 & 13) Total 1,432 796 357 2,585 1,120 1,744 126 2,990
		2,552 2,540 483 5,575 1,640 321 309 2,270 687 1,261 66 2,014 414 1,201 41 1,656
		2,741 2,782 417 5,940
		5,293 5,322 900 11,515
		£000 £000 £000 £000 £000 Total Dep'n Non-staff indirect Non-staff direct (see note 9) Staff indirect 2,087 210 366 115 456 319 72 223 126 846 164 93 127 50 631 109 58 74 17 520 - 1,671 - - 1,671 105 41 82 16 251
	1,512	1,153 2,050 872 419 6,006
	£000 Staff direct (see note 8) 896 117 174 237 - 8	£000 £000 £000 £000 £000 Staff indirect Non-staff direct (see note 9) Non-staff indirect Dep'n Total 444 88 286 206 1,920 316 66 173 124 796 156 62 99 50 541 104 29 61 17 448 - 1,359 - - 1,359 100 36 68 17 229
	1,432	1,120 1,640 687 414 5,293

��

Notes to the Accounts

8. EDUCATION EXPENDITURE - STAFF-DIRECT Directors of Studies, College Lecturers, Supervisors Library staff Research Fellows Senior Tutor, Admissions Tutors, Tutors Tutorial & Admisssions Office staff Other Total 9. EDUCATION EXPENDITURE - NON-STAFF-DIRECT Awards Cambridge Bursary & Top-up Schemes (funded by the College) Cambridge Bursary & Top-up Schemes (funded by the Collegiate University) Bursaries (mainly for undergraduates) Studentships (mainly for postgraduates) Travel, Book and other grants Prizes Total awards Other Admissions Tutorial Research Library Contribution towards UTO Counselling Grants to clubs and societies Miscellaneous Total 10. ACCOMMODATION, CATERING AND CONFERENCES EXPENDITURE - STAFF-DIRECT Catering Conferences Total	2021-22 £000 2021-22 £000 2021-22 £000 625 190 71 1,512 134 255 237 1,670 152 124 268 297 801 28 894 2,050 380 809 85 93 30 58 21 83 53 39 3	2020-21 £000 623 215 43 124 229 198
		1,432
		2020-21 £000 51 117 241 250 688 12
		1,359 61 5 29 17 69 63 36 1
		281
		1,640
		2020-21 £000 725 71
		796

��

Notes to the Accounts

11. ACCOMMODATION, CATERING AND CONFERENCES EXPENDITURE - NON-STAFF-DIRECT Catering Conferences Total 12. OTHER EXPENDITURE - STAFF-DIRECT The Skilliter Centre for Ottoman Studies The Margaret Anstee Centre for Global Studies Research grant from DfID/FCDO Academic support Total 13. OTHER EXPENDITURE - NON-STAFF-DIRECT The Skilliter Centre for Ottoman Studies The Margaret Anstee Centre for Global Studies Research grant from DfID/FCDO Investment management and advice Other Total 14. ACCOMMODATION, CATERING, AND CONFERENCES EXPENDITURE Accommodation College members Conferences Catering College members Conferences Total 15a. ANALYSIS OF 2021-22 EXPENDITURE BY ACTIVITY £000 £000 Education (see note 6a) Accommodation, catering and conferences (see note 6a) Other Movement to pension provisions Loan interest payable Contribution to Colleges Fund under Statute G,II - 63 5,708 8,232 403 301 - 1,818 - 1,006 Staff costs Other operating expenses 2,665 2,922 2,640 2,122	2021-22 £000 2021-22 £000 2021-22 £000 2021-22 £000 £000 - 42 - - Dep'n 419 1,216 558 29 217 39 597 40 50 266 43 133 4 1,495 105 5,978 138 38 4,333 45 8	2020-21 £000 295 26
		321
		2020-21 £000 122 49 41 145
		357
		2020-21 £000 42 - 202 58 7
		309
		2020-21 £000 1,330 93 3,859 40
		5,322
		£000 63 746 1,818 1,006 Total 6,006 5,978
5,708 8,232	1,677	15,617

��

Notes to the Accounts

15b. ANALYSIS OF 2020-21 EXPENDITURE BY ACTIVITY Education (see note 6b) Accommodation, catering and conferences (see note 6b) Other Movement to pension provisions Loan interest payable Contribution to Colleges Fund under Statute G,II 16. ANALYSIS OF EXPENDITURE Operating expenses include: Audit fee payable to the College's external auditors Cost of fundraising Investment management costs - commercial property Investment management costs - securities and cash 17a. STAFF COSTS 2021-22 Education Accommodation, catering and conferences Other 17b. STAFF COSTS 2020-21 Education Accommodation, catering and conferences Other	£000 £000 £000 £000 - (202) - (202) - 1,021 - 1,021 - 16 - 16 2,552 2,327 414 5,293 2,540 1,581 1,201 5,322 483 376 41 900 Staff costs Other operating expenses Dep'n Total	£000 £000 £000 £000 - (202) - (202) - 1,021 - 1,021 - 16 - 16 2,552 2,327 414 5,293 2,540 1,581 1,201 5,322 483 376 41 900 Staff costs Other operating expenses Dep'n Total
	5,575	5,119 1,656 12,350
		2021-22 2020-21 £000 £000 £000 £000 £000 266 137 403 Staff direct Staff indirect Total 1,512 1,153 2,665 894 1,746 2,640 23 18 370 373 19 19 30 37
		2,672 3,036 5,708
		£000 £000 £000 1,432 1,120 2,552 796 1,744 2,540 357 126 483 Staff direct Staff indirect Total
		2,585 2,990 5,575

��

Notes to the Accounts

18. ANALYSIS OF STAFF INDIRECT EXPENDITURE Housekeeping Gardens Maintenance Porters' Lodge Principal, Vice-Principal, Bursars Bursary, HR, Principal's Secretary IT Development, Communications Archive, Collections CCFPS deficit recovery payment Holiday accrual Total 19. ANALYSIS OF NON-STAFF INDIRECT EXPENDITURE Housekeeping Gardens Maintenance Porters' Lodge Electricity Gas Water Rates Insurance Administration, Regulatory Expenditure Office of Intercollegiate Services Levies IT Development, Communications Archive, Collections Other Total	2021-22 £000 2021-22 £000 60 349 3 1 2,481 49 86 168 175 170 421 358 458 (32) 3,036 122 410 61 - 303 97 555 8 270 187 646 201 391	2020-21 £000 361 352 424 45 99 369 40 30 703 178 389
		2,990
		2020-21 £000 118 48 201 2 - 30 71 125 154 146 180 43 688 5 203
		2,014

��

Notes to the Accounts

tes to the Accounts
STAFF COSTS	Academic	Non-	Total
		Academic
	£000	£000	£000
2021-22
Staff Costs
Salaries	838	3,484	4,322
National Insurance	60	278	338
Pension costs	169	612	781
External teaching costs	267	-	267
	1,334	4,374	5,708
2020-21
Staff Costs
Salaries	763	3,442	4,205
National Insurance	60	268	328
Pension costs	149	631	780
External teaching costs	262	-	262
	1,234	4,341	5,575
	Academic	Non-	Total
		Academic
Average staff numbers (non-FTE) - 2021-22	54	161	215
Average staff numbers (non-FTE) - 2020-21	57	144	201
The figures above show the average number of people paid through the College payroll,	irrespective of the	hours worked.
Average non-academic staff numbers (FTE) - 2021-22	n/a	124	124
Average non-academic staff numbers (FTE) - 2020-21	n/a	125	125
The figures above show the average number of FTE persons paid through the payroll.
Average number of Fellows - 2021-22	57	10	67
Average number of Fellows - 2020-21	57	10	67
Number of Fellows as at 1 October 2022	56	10	66
Number of Fellows as at 1 October 2021	57	10	67
Number of Fellows as at 1 October 2020	58	10	68

20. STAFF COSTS

Non-academic staff who are Fellows (i.e. Domestic Bursar, Development Director, Librarian) are included in the Fellows' figures. The Principal is not included in the Fellows' figures.

During the financial year 2021-22, 57 Fellows received remuneration (2020-21: 62).

The number of officers or employees of the College, including the Principal, who received remuneration in the following ranges was:

		2021-22	2020-21
£120,000	- £130,000	1	1
£130,000	- £140,000	1	1

Remuneration includes salary, employer's national insurance contributions, employer's pension contributions plus any taxable benefits whether paid, payable or provided, gross of any salary sacrifice arrangements.

��

Notes to the Accounts

20. STAFF COSTS (continued)

Key management personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College. The key management personnel of the College are the Principal, Vice-Principal, Senior Tutor and Bursar. The aggregated remuneration paid to key management personnel consists of salary, employer's national insurance contributions, employer's pension contributions, plus any taxable benefits paid, payable or provided, gross of any salary sacrifice arrangements.

Aggregated remuneration The total remuneration for persons who served as Trustees (members of the College Council) in 2021-22 wa (2020-21: £416k). 21. PENSION COSTS OF CCFPS & USS 2021-22 Brought Forward Contributions Charge to Income and Expenditure Net charge to Income and Expenditure Charge to Other comprehensive income Carried Forward 2020-21 Brought Forward Contributions Charge to Income and Expenditure Net charge to Income and Expenditure Charge to Other comprehensive income Carried Forward 22. LOAN INTEREST PAYABLE Bank loan Private placement 1 Private placement 2 Total (484) 1,177 45 1,616 102 (57) 1,177 94 (436) 772 31 (63) CCFPS £000	Aggregated remuneration The total remuneration for persons who served as Trustees (members of the College Council) in 2021-22 wa (2020-21: £416k). 21. PENSION COSTS OF CCFPS & USS 2021-22 Brought Forward Contributions Charge to Income and Expenditure Net charge to Income and Expenditure Charge to Other comprehensive income Carried Forward 2020-21 Brought Forward Contributions Charge to Income and Expenditure Net charge to Income and Expenditure Charge to Other comprehensive income Carried Forward 22. LOAN INTEREST PAYABLE Bank loan Private placement 1 Private placement 2 Total (484) 1,177 45 1,616 102 (57) 1,177 94 (436) 772 31 (63) CCFPS £000	2021-22 2020-21 s £490k 1,384 2,561 2,536 2,630 (749) (812) £000 317 337 £000 £000 USS Total £000
	(436) 31	- (436) 1,786 1,817
	772	3,170 3,942
	1,616 102 (57)	1,632 3,248 473 575 (721) (778)
	(484) 45	- (484) (248) (203)
	1,177	1,384 2,561
		2021-22 2020-21 £000 £000 1,006 1,021 182 197 511 511 313 313

Further information on the bank loan and private placements can be found in note 29.

��

Notes to the Accounts

23. CONTRIBUTION TO COLLEGES FUND UNDER STATUTE G,II

Contribution

2021-22	2020-21
£000	£000
63	16

Every College in the University is required to make an annual contribution based on the value of its assessable assets.

24. FIXED ASSETS Cost or valuation At 1 July 2021 Additions Disposals Depreciation At 1 July 2021 Charge for the year Eliminated on disposals Net Book value At 30 June 2022 At 1 July 2021	50,342 90,994 1,471 142,807 50,342 91,686 1,471 143,499 - 3,835 1,752 5,587 - 1,459 218 1,677 - - (22) (22) - 2,376 1,556 3,932 50,342 94,829 3,223 148,394 Land Buildings Equipment Total £000 £000 £000 £000 - - (22) (22) 50,342 94,062 3,027 147,431 - 767 218 985 College College Furniture & 2021-22	Total £000 (204) 146,136 1,499 2020-21
		147,431
		1,656 (204) 2,480
		3,932
		143,499
		143,656

A valuation of College properties was carried out by Gerald Eve, Chartered Surveyors, at 30 June 2019 on the basis of market value for existing use, plus current gross replacement costs of improvements, less allowance for physical deterioration and obsolesence.

The freehold College buildings at 30 June 2022 were insured at reinstatement costs of £119.2m.

��

Notes to the Accounts

25. INVESTMENTS

INVESTMENTS At 1 July 2021 Additions Disposals Gain/(loss) At 30 June 2022 Represented by: Estate properties (held directly) Properties (held indirectly via funds) Quoted securities - equities (held indirectly via funds) Quoted securities - fixed interest (held indirectly via funds) Unquoted (held indirectly via funds) Cash held for reinvestment	2021-22 £000 100 112,679 112,679 3,525 100,639 - 2,622 133,617 7,500 (10,605) (17,833) 5,793	2020-21 £000 106,409 24,000 (25,431) 28,639
		133,617
		100 3,525 118,037 3,880 3,288 4,787
		133,617

At 30 June 2019, a valuation of the investment properties was carried out by on an open market value for existing use basis by Gerald Eve, Chartered Surveyors. The Trustees have in place a policy to revalue professionally periodically, but consider each year whether the market value of the properties has materially changed. Any material change in market value will be reflected in a revaluation movement in the year in question. The Trustees have considered the market value at the end of the current financial year and have deemed that the value has not materially moved since the previous professional valuation.

26. STOCKS AND WORK IN PROGRESS Food and drink Wine Cleaning materials and other 27. TRADE AND OTHER RECEIVABLES Taxes due from government departments Grants receivable Other receivables Prepayments and accrued income	2021-22 £000 2021-22 £000 104 1,640 1,794 30 24 80 49 1 26	2020-21 £000 36 22 35
		93
		2020-21 £000 94 700 24 42
		860

��

Notes to the Accounts

28. CASH AND CASH EQUIVALENTS	2021-22	2020-21
	£000	£000
Current accounts	5,037	2,293
Cash in hand	1	1
	5,038	2,294
29. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR	2021-22	2020-21
	£000	£000
Trade creditors	274	210
Loan repayments	264	248
Taxes and social security costs	35	-
Student deposits and accounts	160	250
Accruals and deferred income	810	738
	1,543	1,446
30. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR	2021-22	2020-21
	£000	£000
Bank loan	3,074	3,341
Private placement 1 liability	11,580	11,580
Private placement 2 liability	7,000	7,000
	21,654	21,921

The bank loan is secured on certain College freehold properties and is subject to interest fixed under a swap agreement at 5.24% for 25 years from 2007. Repayments commenced in 2007 and will be made over the 25 years to June 2032. The first private placement bond of £11,580,000 is repayable in two tranches, of £6,433,333 on 30 October 2043 and £5,146,667 on 30 October 2053 and is subject to a fixed rate of interest of 4.40%.

The second private placement bond of £7,000,000 is repayable on 31 January 2044 and is subject to a fixed rate of interest of 4.45%.

31. PENSION PROVISIONS At 1 July 2021 Movement in year: Current service cost including life assurance Contributions Actuarial loss/(gain) recognised in Statement of Comprehensive Income and Expenditure At 30 June 2022	2021-22 2020-21 £000 £000 (436) (484) 3,942 2,561 2,561 3,248 2,629 575 (812) (778)

��

Notes to the Accounts

32. ENDOWMENT FUNDS

Restricted net assets relating to endowments are as follows:

2021-22 At 1 July 2021 New donations and endowments Transfer between funds (Decrease) in market value of investments At 30 June 2022 Analysis by type of purpose: Fellowship Funds Scholarship Funds Prize Funds Hardship Funds Research Funds Book Funds Other Funds General Endowments 2020-21 At 1 July 2020 New donations and endowments Transfer between funds Increase in market value of investments At 30 June 2021 Analysis by type of purpose: Fellowship Funds Scholarship Funds Prize Funds Hardship Funds Research Funds Book Funds Other Funds General Endowments	55,288 20,315 75,603 905 - 905 (8,614) (871) (9,485) permanent permanent Total endowments endowments 2021-22 £000 £000 £000 - - - Restricted Unrestricted
	47,579 19,444 67,023
	923 - 923 935 - 935 - 19,444 19,444 403 - 403 6,039 - 6,039 14,114 - 14,114 17,914 - 17,914 7,251 - 7,251
	47,579 19,444 67,023
	endowments 2020-21 £000 £000 £000 45,129 19,348 64,477 464 - 464 9,616 967 10,583 Restricted Unrestricted permanent permanent Total 79 - 79 endowments
	55,288 20,315 75,603
	- 20,315 20,315 6,944 - 6,944 16,692 - 16,692 1,091 - - 476 1,091 20,497 - 20,497 1,105 - 1,105 8,483 - 8,483 476
	55,288 20,315 75,603

��

Notes to the Accounts

32. ENDOWMENT FUNDS (continued)

At 1 July 2021 Gift of Endowment funds Investment returns: dividends and interest Net movement before application of income Unapplied total return allocated to income in the year Net movement in the year At 30 June 2022 At 1 July 2020 Gift of Endowment funds Investment returns: dividends and interest Net movement before application of income Unapplied total return allocated to income in the year Net movement in the year At 30 June 2021	569 (10,054) 905 - 905 Total Unapplied total return Endowment £000 £000 £000 44,797 - - 30,806 569 (10,054) 75,603
	905 (9,485) (8,580) - - - 905 (9,485) (8,580)
	45,702 21,321 67,023
	44,254 20,223 64,477 543 - 543 - 308 308 - 10,275 10,275
	543 10,583 11,126 543 10,583 11,126 - - -
	44,797 30,806 75,603

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Notes to the Accounts

33. RESTRICTED RESERVES

Reserves with restrictions are as follows: 2021-22 At 30 June 2021 New grants and donations Investment income Expenditure Transfer between funds (Decrease) in market value of investments At 30 June 2022 Analysis by type of purpose: Fellowship Funds Scholarship Funds Prize Funds Hardship Funds Research Funds Book Funds Other Funds 2020-21 At 30 June 2020 New grants and donations Investment income Expenditure Transfer between funds Increase in market value of investments At 30 June 2021 Analysis by type of purpose: Fellowship Funds Scholarship Funds Prize Funds Hardship Funds Research Funds Book Funds Other Funds	(557) (2,182) (2,739) Restricted - 253 253 1,569 373 1,942 unspent endowment 2021-22 £000 £000 £000 (649) (151) (800) (427) (672) (1,099) 3,589 14,131 17,720 Permanent expendable
	3,525 11,752 15,277
	4,078 4,532 517 73 1,785 1,858 137 1,008 1,145 98 139 237 454 120 637 1,237 3,352 4,589 1,009 1,270 2,279
	3,525 11,752 15,277
	(2,222) 6 (125) (119) 545 2,487 3,032 £000 £000 £000 2,522 11,768 14,290 - 1,006 1,006 1,392 341 1,733 (876) (1,346) Restricted Permanent expendable unspent endowment 2020-21
	3,589 14,131 17,720
	1,174 3,913 5,087 487 138 625 75 2,070 2,145 183 1,142 1,325 1,124 1,703 2,827 104 163 267 442 5,002 5,444
	3,589 14,131 17,720

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Notes to the Accounts

33. RESTRICTED RESERVES (continued)

At 1 July 2021 Gift of Endowment funds Investment returns: dividends and interest Net movement before application of income Unapplied total return allocated to income in the year Net movement in the year At 30 June 2022 At 1 July 2020 Gift of Endowment funds Investment returns: dividends and interest Net movement before application of income Unapplied total return allocated to income in the year Net movement in the year At 30 June 2021	Endowment Unapplied total return �� �� �� �� 12,271 5,449 17,720 - 164 164 (846) - (846) - (2,903) (2,903)
	1,142 1,142 (846) (1,597) (2,443) (846) (2,739) (3,585) -
	11,425 3,852 15,277
	- 2,944 2,944 - 88 88 11,384 2,906 14,290 887 - 887
	887 3,032 3,919 - (489) - 887 2,543 3,919
	12,271 5,449 17,720

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Notes to the Accounts

34. RECONCILIATION OF CONSOLIDATED SURPLUS FOR THE YEAR TO NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES Surplus for the year Adjustment for non-cash items Depreciation and movements to Revaluation Reserve (Gain)/Loss on endowments, donations and investment property Decrease in stocks (Increase) in trade and other receivables Increase in creditors Increase/(decrease) in provisions Pension costs less contributions payable Release of deferred capital grants Adjustment for investing or financing activities Investment income receivable Interest payable Net cash inflow/(outflow) from operating activities 35. CASH FLOWS FROM INVESTING ACTIVITIES Non-current investment disposal Investment income received Endowment funds invested Payments made to acquire non-current assets Total cash flows from investing activities 36. CASH FLOWS FROM FINANCING ACTIVITIES Interest paid Repayments of amounts borrowed Total cash flows from financing activities 37. CONSOLIDATED RECONCILIATION AND ANALYSIS OF NET DEBT Cash and cash equivalents Borrowings: amounts falling due within one year Secured loans Borrowings: amounts falling due after more than one year Secured loans £000 2,294 (19,875) (248) (21,921) At 1 July 2021	2021-22 £000 2021-22 £000 2021-22 £000 267 £000 2,744 (16) (251) (1,257) Cash Flows (985) 3,332 (1,006) 10,604 1,212 (7,500) 1,381 436 (51) 669 (1,212) 1,006 81 (19,562) 1,677 17,832 13 (933)	2020-21 £000 (686) 484 (51) (641) 1,021 199 25,742 1,656 (28,639) - (411)
		(1,326)
		2020-21 £000 (1,499) 25,430 641 (24,000)
		572
		2020-21 £000 (236) (1,021)
		(1,257)
		(21,654) £000 5,038 (264) At 30 June 2022
(19,875)	2,995	(16,880)

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Notes to the Accounts

38. RELATED PARTY TRANSACTIONS

Owing to the nature of the College's operations and the composition of the College Council and Governing Body it is inevitable that transactions will take place with organisations in which a member of the College Council or Governing Body may have an interest. All transactions involving organisations in which a member of the College Council or Governing Body may have an interest are conducted at arms length and in accordance with the College's normal procedures.

The College maintains a register of interests for all College Council members and where any member of the College Council or Governing Body has a material interest in a College matter they are required to declare that fact.

During the year Newnham College received £42,819 from the Sir Isaac Newton Trust in relation to fellowship funding and Dr Laurie Friday is a Director of this Trust and a member of the College Council.

During the year no fees or expenses were paid to Fellows in respect of their duties as Trustees.

Fellows are remunerated for teaching, reasearch and other duties within the College. Fellows are billed for any private catering. The Trustees remuneration is overseen by the College Council.

The salaries paid to Trustees (after salary exchange) in the year are summarised in the table below.

From To £0 £10,000 £10,0001 £20,000 £20,0001 £30,000 £30,0001 £40,000 £40,0001 £50,000 £50,0001 £60,000 £60,0001 £70,000 £70,0001 £80,000 £80,0001 £90,000 £90,0001 £100,000 Total	2021-22 2020-21 13 14 5 5 - 1 1 - - - 2 4 6 - 1 - - - - 2 - - Number Number

The total Trustee salaries (after salary exchange) were £369k for the year (2020-21: £315k).

The trustees were also paid other benefits (including associated employer National Insurance contributions and employer contributions to pensions) and other taxable benefits which totalled £121k (2020-21: £101k).

There are 31 Colleges, each of which is an independent corporation with its own property and income. Each College publishes its own financial statements in a form specified by the University of Cambridge. The College pays levies to support the activity of the Office of Intercollegiate Services (OIS). The OIS is responsible primarily for arranging support services to the 31 colleges of the Collegiate University(Cambridge).

The College acts as an agent for the collection of fees for the University of Cambridge; for the year ended 30 June 2022 these fees total £9,017k (2020-21: £9,234k). During the year the College paid the University from these fees sums totalling £6,494k (2021: £6,676k) and kept £2,523k (2020-21: £2,558k) under the terms of agreements between the University and the Colleges to share fee income with the Colleges in a way that recognises the relative contributions of the University and the Colleges. During the year Newnham College made a contribution under Statute Gil of £63k (2020-21: £16k) into the Colleges Fund. The Colleges Fund is administered by the University of Cambridge on behalf of the Colleges, who make all contributions to and receive all allocations from the Fund. Newnham College administers a Cambridge Bursary Scheme to support undergraduates financially; the University of Cambridge contributed £268k to this scheme (2021: £241k). In the course of its charitable activities, Newnham College also pays the University of Cambridge for printing, network and other services. In addition, Newnham College periodically provides conference-related services including accommodation, catering and other services to the organisations and departments belonging to the University of Cambridge on standard third party terms.

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Notes to the Accounts

39. SUBSIDIARY UNDERTAKINGS

The subsidiary companies (all of which are registered in England & Wales), wholly-owned by the College, are as follows:

Company	Company Number	Principal Activity
Newnham College Library Company Ltd	04077568	Inactive
Newnham College Management Ltd	02867403	Provision of maintenance and construction projects
Newnham College Ltd	02788626	Inactive

All subsidiary companies are incorporated in the United Kingdom.

The College has taken advantage of the exemption within Section 33 of FRS 102 not to disclose transactions with wholly owned group companies that are related parties.

Newnham College Libray Limited and Newnhan College Limited had no profit or loss in either 2021-22 or 2020-21 and their balance sheet is £2 (2020-21: £2). Newnham College Management Limited incurred a loss of £1,033 (2020-21: £5,990) and a balance sheet of £19,071 (2020-21: £20,104)

40. FINANCIAL COMMITMENTS

At 30 June 2022 and 30 June 2021 the College had no annual commitments under non-cancellable operating leases. The College has committed to investing in various private equity funds over approximately the next two years as at June 2022. A total of £0m (2020-21: £0.7m) may be called up for investment at any point during that period, but this is not a liability, it would be a reclassification of College investments.

reclassification of College investments.
	2021-22	2020-21
	£000	£000
Capital commitments at 30 June 2022 are as follows:
Authorised and contracted for	1,207,258	670,558

41. CONTINGENT ASSETS

Where legacies have been notified to the College, or the College is aware of the granting of probate, and the criteria for income recognition have not been met at the year end, then the legacy is treated as a contingent asset. At the balance sheet date contingent legacy assets are estimated to be: £135,885 (2021: £676,825).

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Notes to the Accounts

42. PENSION SCHEMES

(a) Cambridge Colleges Federated Pension Scheme

The College participates in a multi-employer defined benefit plan, the Cambridge Colleges' Federated Pension Scheme. At 30 June 2022 Newnham College had 3 active members participating in the plan.

The liabilities of the plan have been calculated, as at 30 June 2022, for the purposes of FRS102 using a valuation system designed for the Management Committee, acting as Trustee of the Cambridge Colleges' Federated Pension Scheme, but allowing for the different assumptions under FRS102 and taking fully into consideration changes in the plan benefit structure and membership since that date.

The principal actuarial assumptions at the balance sheet date were as follows:

	2021-22	2020-21
	% p.a.	% p.a.
Discount rate	3.80	1.80
Increase in salaries	3.25	3.10
RPI assumption	3.45*	3.40
CPI assumption	2.75*	2.60
Pension increases in payment (RPI Max 5% p.a.)	3.30	3.30
Pension increases in payment (CPI Max 2.5% p.a.)	2.05	1.95

For 1 year only, it has been assumed that RPI will be 11% and CPI will be 9%. The caps under the Rules are applied to assumed pension increases.

The underlying mortality assumption is based upon the standard table known as S3PA on a year of birth usage with CMI_2021 future improvement factors and a long-term rate of future improvement of 1.25% per annum, a standard smoothing factor (7.0) and no allowance for additional improvements (2021: S3PA with CMI_2020 future improvement factors and a long-term future improvement rate of 1.25% per annum, a standard smoothing factor (7.0) and no allowance for addtional improvements). This results in the following life expectancies:

Male aged 65 now has life expectancy of 21.9 years (previously 21.9 years)
Female aged 65 now has life expectancy of 24.3 years (previously 24.3 years)
Male aged 45 now and retiring in 20 years has a life expectancy at 65 of 23.2 years (previously 23.2 years)
Female aged 45 now and retiring in 20 years has a life expectancy at 65 of 25.7 years (previously 25.7 years)

Employee Benefit Obligations

The amounts recognised in the Balance Sheet as at 30 June 2022 (with comparative figures as at 30 June 2021) are as follows:

Present value of plan liabilities Market value of plan assets Net defined benefit asset/(liability)	2021-22 2020-21 £000 £000 (772) (1,177) - - (5,416) (6,865) 4,644 5,688

The amounts to be recognised in the Income and Expenditure for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

Current service cost Administrative expenses Interest on net defined benefit (asset)/liability (Gain)/loss on plan changes Curtailment (gain)/loss Total	2021-22 2020-21 £000 £000 60 12 21 - - 102 94 68 11 24 - -

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Notes to the Accounts

42. PENSION SCHEMES

(a) Cambridge Colleges Federated Pension Scheme (continued)

Changes in the present value of the plan liabilities for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

Present value of plan liabilities at the beginning of the year Current service cost Employee contributions Benefits paid Interest on plan liabilities Actuarial (gains)/losses (Gain)/loss on plan changes Curtailment (gain)/loss Present value of plan liabilities at the end of the year	2021-22 2020-21 £000 £000 121 101 (1,319) (147) - - - - 6,865 5,416 6,865 7,074 60 68 - - (311) (232)

Changes in the fair value of the plan assets for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

Market value of plan assets at the beginning of the year
Contributions paid by the College (employer contribution)
Contributions paid by the College (employee contribution - salary exchange)
Contributions paid by the College (funding shortfall)
Contributions paid by the College (administration fee)
Benefits paid
Administrative expenses
Interest on plan assets
Return on assets, less interest included in Income and Expenditure
Market value of plan assets at the end of the year
Actual return on plan assets

2021-22
2020-21
£000
£000
4,644
5,688
(781)
419
-
5,688
5,458
-
(311)
(232)
(14)
(15)
100
78
(881)
341
51
45
12
12
-
-

The major categories of plan assets as a percentage of total plan assets for the year ending 30 June 2021 (with comparative figures for the year ending 30 June 2020) are as follows:

Equities Bonds and cash Property Total	2021-22 2020-21 52% 48% 34% 42% 100% 100% 14% 10%

The plan has no investments in property occupied by, assets used by, or financial instruments issued by the College.

Analysis of the measurement of the net defined benefit liability recognised in Other Comprehensive Income (OCI) for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

Return on assets, less interest included in the Income and Expenditure Expected less actual plan expenses Experience gains and losses arising on plan liabilities Changes in assumptions underlying the present value of plan liabilities Remeasurement of net defined benefit liability recognised in OCI	2021-22 2020-21 £000 £000 (881) 341 (2) (4) (371) 64 1,690 83 436 484

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Notes to the Accounts

42. PENSION SCHEMES

(a) Cambridge Colleges Federated Pension Scheme (continued)

Movement in net defined benefit asset/(liability) during the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

Net defined benefit asset/(liability) at beginning of year Recognised in Income and Expenditure Contributions paid by the College Remeasurement of net defined benefit liability recognised in OCI Net defined benefit asset/(liability) at end of year	2021-22 2020-21 £000 £000 (772) (1,177) (1,177) (1,616) (94) (102) 63 57 436 484

Funding Policy

Actuarial valuations are carried out every three years on behalf of the Management Committee, acting as Trustee of the Scheme, by a qualified independent actuary. The actuarial assumptions underlying the funding valuation are different to those adopted under FRS102.

The last such valuation was as at 31 March 2020. This showed that the plan's assets were insufficient to cover the liabilities on the funding basis. A Recovery Plan has been agreed with the College, which commits the College to paying contributions to fund the shortfall.

These deficit reduction contributions are incorporated into the plan's Schedule of Contributions dated 21 May 2021 and are as follows:

Annual contributions of not less that £9,244 per annum payable for the period from 1 July 2021 to 31 March 2027.

These payments are subject to review following the next funding valuation, due as at 31 March 2023.

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Notes to the Accounts

42. PENSION SCHEMES

(b) Universities Superannuation Scheme

The College participates in the Universities Superannuation Scheme (the scheme). The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The College is therefore exposed to actuarial risks associated with other institutions' employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS102 "Employee benefits", the College therefore accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme. Since the College has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the College recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) with re;ated expenses being recognised throught the income and expenditure account.

Deficit recovery liability

The total cost charged to the income and expenditure account for the College and subsidiaries in 2021-22 is £1,786k (2020-21: - £248k).

Deficit recovery contributions due within one year for the College are £206k (2020-21: £168k).

The latest available complete actuarial valuation of the Retirement Income Builder is at 31 March 2020 (the valuation date), and was carried out using the projected unit method.

Since the College cannot identify its share of USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.

The 2020 valuation was the sixth valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appopriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £66.5 billion and the value of the scheme's technical provisions was £80.6 billion indicating a shortfall of £14.1 billion and a funding ratio of 83%.

The key financial assumptions used in the 2020 valuation are described below.

CPI assumption Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves, less 1.1% p.a. to 2030, reducing linearly by 0.1% p.a. to a long-term difference of 0.1% p.a. from 2040 Pension increases (subject to a floor of CPI assumption plus 0.05% 0%) Discount rate (forward rates) Fixed interest gilt yield curve plus: Pre-retirement: 2.75% p.a. Post-retirement: 1.00% p.a.

The main demographic assumption used relates to the mortality assumptions. These assumptions are based on analysis of the scheme's experience carried out as part of the 2020 actuarial valuation. The mortality assumptions used in these figures are as follows:

ows:
	2020 valuation
Mortality base table	101% of S2PMA "light" for males and 95% of S3FPA for females
Future improvements to mortality	CMI_2019 with a smoothing parameter of 7.5, an initial addition of 0.5% p.a. and a long- term improvement rate of 1.8% p.a. for males and 1.6% p.a. for females

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Notes to the Accounts

42. PENSION SCHEMES

(b) Universities Superannuation Scheme (continued)

The current life expectancies on retirement at age 65 are:

current life expectancies on retirement at age 65 are:
	2021-22	2020-21
Males currently aged 65 (years)	23.9	24.7
Females currently aged 65 (years)	23.5	26.1
Males currently aged 45 (years)	25.9	26.7
Females currently aged 45 (years)	27.3	27.9

A new deficit recovery plan was put in place as part of the 2020 valuation, which requires payment of 6.2% of salaries over the period 1 April 2022 until 31 March 2024, at which point the rate will increase to 6.3%. The 2022 deficit recovery liability reflects this plan. The liability figures have been produced using the following assumptions:

	2021-22	2020-21
Discount rate	3.31%	0.87%
Pensionable salary growth	3.00%	2.70%

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