Hertford College Annual Report and Financial Statements Year ended 31st July 2021
Hertford College Annual Report and Financial Statements for the year ended 31st Juty 2021 CONTENTS Goveming Body. offirS and Advisers Rewrt of the Goveming Body Auditor's ReFM)rt Statement ofAccounting Pdicies ConsolKlated Statement of Financial Activtbes 14 17 23 ConsolK1ated and College Balan(* Sheets ConsolK1ated Statement of Cash Flows 25 Notes to the Financial Statements 27
Hertford Colleg8 Governing 8ody• oificers and Adviser5 Year ended 31st July 2021 MEMBERS OF THE GOVERNING BODY The Members of the Goveming Body are the College's chaty tnjstees under charity law. The mefflbers of the (k)verning Body who seNed in offi as Govemor5 during the year are delailed below. Governing Body Fellow Professor L F Alday Professor E Baldwn College Officers {2) {3) {4) (5) Tutor for Equaltty & Diversity Professor H Bayley Professor R N E Barton Professor C D Brewer Professor E Chalzis Mr J K Clark Bursar Professor Z F Cui Professor F Duarte Dr D Dwan Mr T Flètcher Pri[pa1 Professor B M Frelleswg Dr A Galanis Tutor ICK Graduates Dr K Greasley Professor D Greaves Professor D M Hopkin Dr J Kiaer Senv)r Tutor Professor D Kielak Professor A G Lauder Professor P Ligoxygakis Dr J Lorirner Dr K LUnn-R0cke Professor l MGBride Professor M Maiden Dr L Malafourts Professor A Mikes Professor P J R Millican Dr A Nair DrSJNew student Conduct Offir Dro J Noble Wood Dean and SCR Steward Professor S Paratneswaran
Hertford College Governing Body, Officers and Advisers Year ended 31st July 2021 Governing Body Fellow Professor P F Roche College offirS Investment Bursar (i) (2) (3) (4) (5) Dr F Romei Dr L Slater Dr C Sloan Profassor E Smith Fellow Librarian Professor G Sternberg Professor D Thomas Professor C Tyerman Professor C Vallan Fellow Archivist Dr C Veliz Dr Vyazovskiy Professor T Wilson Professor M Wooldridge Professor A C S Woollard Ms F Wheare Director of Development Professor G Wright Professor R G Zubek After the year end date, Prof Tyerman. and Prof WnghL have ceased lo be members of &)veming Body. ProfAlday ceased to be 8 member of GovemirKJ B(MJy in November 2020. During the year the activities of Ihe Goveming Body were (2rried out Ihrough various committees. Membership of the main committees is shown above for each Fdlow. {1) Acajetnic Commrttee {21 Treasury Comttee {3) Devek)ptnenl Committee 14) General Purposes Committee (5) Domus Committee COLLEGE SENIOR STAFF The senior staff of the College to whom specific aspects of day to day management were delegated during the course of the year. and wtrK) are tEgard&J as Key Management Personnel. was as follows. Deputy Bursar and College Aco)untant Mr Gall1 May (to Aug 21) Dornestic Bursar Mr Gareth Tebbutt (to Jul 21) MrJames Hill (fmm Jul 21) Ms Lynn Feathe Registrar arKJ 01ctor of AdmissK)r Th8 Deputy Bursar role has been discontinued. aTrJ Ms Judi Banks has subsequenty (post ffinanaal year 8ndl been appoint&Y to the role of Colwe Acctant
Hertford College Govemlng Body, Officers and Advisers Year ended 31st Juty 2021 COLLEGE ADVISERS Investment managers Rathbones Investment ManeMent Ltd 8 Finsbury Circus London EC2M 7AZ Oxford Universty Endowment Mana9errwt 27 Parf( End Street Oxford OX1 1HU Auditor Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Banker5 Barclays Bank PLC Oxford Cty Branth PO Box 333 Oxft)rd OX1 3HS Sollcitors Knights 1759 Midland Htyjse West Way Bodey Oxford OX2 OPH United Klngdom College address Hertford College. Catte street, Oxford OX13BW Website vw.hertford.ox.8G.uk
HERTFORD COLLEGE Report ofthe Governing Body Yearended 31 July 2021 REPORT OF THE GOVERNING BODY The Members of the Governing Body preswt theirAnnual Report for the year ended 31st July 2021 under the Charities Act 2011. together with the audrted financial statements for the year. REFERENCE AND ADMINISTRATIVE INFORMATION The Principal Fellows and Scholars of Hertford College in the UnNer5ity of Oxford, which is knDwri as Hertford College {"Ihe College"). is an eensynary chartered charitable cortK)ration aggregate. The College was founded by an Act of PariiarrEnt ir) 1874 that incorFK)rdted Magdalen Hall as HertforKI College. An Act of Parfiamenl of 1816 had grdnted Magdalen Hall the site and resKJual possessions of an eadier. by then defvnct, Herttord College. This had received a Royal Charter in 1740. being the SU$50r lo Hart Hall which daimed its origins in a hall of resvjence established by Elia5 de Hertford c. 1282. The College registered wth the Charities CommissKFn on 17th Augusl 2010 (registered number 1137527). The names of all Members of the Govetniry B(Kly at the date of this report arKJ of Ihose in office during the year. together wth details ot advisers of the College, ate given on pages 2 to 4. STRUCTURE. GOVERNANCE AND MANAGEMEpir Goveming documents The College goVer[d by wis Stabjles Mle uThJer the pn)visKJn of the Oxtord and Carnbe act 1923 and approved by Order in Council on 121h October 2011. Goveming Body The GoverniT¥J Body is consb"tuted and ulated in accordan wilh Ihe College Statutes. the teThns of which are enforceable ultimately by the witor. who is the chan110r of The University of Oxford. New members of the Goveming B(KJy are elected by the votes of not less than Nvo thirds of the tolal number of Felows and wlh the consent of the Prinapal. The Governing Body delemiines the on-going strategic directK)n of the College and regulate5 its administration and the management of its finances and assets. It meets regularty under the chairmanship of the Principal and is adwsed by ccmnmittees. Rgcruitmant and trainlng of Members of the Governing Body New Members of the Govetning 8Y are inducled into the workings of the Ccllege. including CveMing Body policy and protEdures. by the Principal arKI Bursar. Members of the Governing Body (zn atter¥J trustee inf0Mn briefings to keep them infomed of their dueS as trustees and alxiut regulatory requiretnerts. Remuneration of Membars of Ihe Goveming Body and Senior College Staff Members of the GDverning Bcmty re1Ve remurwation or beneffts from their trusteeship of the College. Those membew5 that are also ewnployee5 of the College r1ve remuneration for their as employees of the College. which is Set in a([dan wth the advi of the College's Rernuneration Committee. Where p)ssible and relevant, remuneratson is set in line with that awarded to the University's academic staff. Al staff are all remunerated at a level which equals or ex(& the Nat"or1 Living Wage. The remuneration of senior college staff is set by the Treasury Committee in line with guidelines set by the Remuneration Committee by raference to the annual (anonymised) survey of Cdlege Officers and Fellows, Benefits conducted by the University and Conference of CcAleges. Organisational management The members ofthe Goveming Bcxty meet at least six b.mes a year. The main work of developing their policies and monitoring their imFdementalion is carried t by Varic committees..
HERTFORD COLLEGE Report of the Governing Body Yearered 31 Juty 2021 Academic Committee.. athses and reFths to Goveming Bity on all mallers relating to academic Fdicy and has oVersht of the academic reputation of the College in all its aspects. Treasury Committ. has oversight of the College's finan and investments and reports to (kneming BCKJY on the effectiveness and propriety of the Coljege's finanuaf management. Development Committee.. leads on the devel¢Jpmenl of slrategy the College's developrnenl adivities, Klentifies funding priorities within the trarrork of Jhe College's strategic plan and liaises with the Treasury Committee to oversee the perf0Mn and finanaal rnanagement of the Development Office. General Purposes Committee.. reiVeS reFK)rts from arml provides SUPFKxi to Ihe Prinap81 on College business in his role as its represenlative within the University and the wderworld. The Committee r1ve8 nomirlI0nS kn Cdkge OffiS and the mbershIp of commtitees. Domus Committee: has oversight of the domestic tronagement of the Cdlege. Remuneration Commtttee: (x)nsisls of four persons tK)t in r1p1 of MUnerab.0n from the Cdlege of which three are not members of Goveming B(MJy. with the Principal and the Bursar in altendance. The Committee makes reo)mmendations to the Goveming B(xJy on Fellows, allowances and College orricers. slipends. The day-to-day running ofthe College is degal io the Bursar, supported by the Domestic Bursar. The Bursar attends all meetings ofthe Governing Botys ComMitts. exceptAcademic Cotnmittee. Group structure and relationships The College administers a number of special trusts. as detailed in Notes 17 aThJ 18 to the financial statements. The College has tsvo wholly-owned nOn-tharitae sUbSlanes. Hertford College Programmes started trading on 1 sl August 2010. and its ath"vities primarity comprise nferen and English Language programmes which use the College's facilities when not in use by Ihe College. Annual profits are donated lo the College under the Grft Aid Stheme. Herttord Cdlege Design and Build s12rted trading on 13th March 2020. and its aclFMties Ix)mprise designing. mmIssIOn1ng aThJ constnjcting new estsles facilities for the College. Hertford College Design and Build be preparing its first set of accounts for the period to 31Y, July 2021. Annual profrts are donated to the CcAlege Und the Gift Scheme_ The College is part of the collegiate Univet5ty of Oxford. Material interdep8ndencies beeen the University and the College arise as a crjnsequence of this relatK)nship. OWECTIVES AND ACTIVITIES Charitable Objects and Aims The College's Objects are to advan Publ leaming by the provisi)n of a ccAlege in the University of Oxford. The Goveming B(KJy has considwed the Charity Commissi¢Jn's guidan C public benefit and, in keeping with its objects. the College's aims for the public benefit are to: Promote excellen in undergraduate educalion. including pastoral arKI academic supwrt. Make that extsllence assIble to all can benefrt from it regardless oftheir 18[ or economic backgrourKI. Provide pastoral arml academic 5UPFM)rt to graduate students. aThJ Promote excellence in research on the part of its Fellows and stipelIary Lethrers. The aims of the College's subsidiaries are to help Its fvnd. otheThvise suptx)rt, the achievement of the College's aims as above.
HERTFORD COLLEGE Report of the Govemlng Body Year ended 31 July 2021 The College remains committed to the aim of provKJing pUtlC tRneffit in acrdance with its founding principles. The CoSlege's Public Benefit Statetnent is puiAished the Cdlege website. The C(Alege advances Pl11¢ leaming by FKDviding higher edLKXtion to underUate and tK)stgr&Juate Students within Oxford University and by supporb.ng the pursuit of putAidy disseminated research. The College cUendY has approxirnateSy 416 UTKlergraduates. 336 postgraduates. and 36 fellows who have contractual obligations lo teach as well as research. The College provides public benefit by offering higher education to its Uergrdduates. rnuch of it via the hjtorial system which provides the OPFN)rtunity to meet with a tutor on a weekty basis during tem time. In addition. the College provides dasses, seminars and other forms of teaching as appwt)priale. in conjunction with the UniveTrity's depaTtsnents. To support shjdent leaTning, the College also provhkn the use of the College's library aThY aGGommodation ar activdy promotes the wider culiural and 9xial edLbcalion of its Sdents through the pvIsion of computer. sports, reer$ a(fvi(e and other facilities. Graduates at the College form an imwJrtant part of the aCleM1¢ comrTyJnity. While they are taught at their University Faculty, every graduate student is assigned a Cdlege Graduate Adviser who provides pastoral support. The College also advances researth in a range of disoplines by employing academics who have a Contractual obloation to undertake published research, and providiry them with a SUPFK)rtive academic atmosphere, including the provision of researth grants. library and computer facilities. office acrnm0dation and meals. Research is disseminated through wblished paFtrs. books, websites and lectures. The College SUPPOTts the research of a(xdernit% W), at the beginning of their careers. have already shown outstanding prornise in their chosen rid of research by provwjing a fijlly fvjnded Junior Research or Career Devekipment Fellowship for a perKNJ of up to three yea[5 to enable the holders to ncentrate solety on their topic of Sear1. The College offefs undergraduate plaS on basis of a¢ademic merit. The College aims to attract the sttKlents who are most able to benefit from an Oxford education regardle&s of sex. gender. income. ethnic origin, religion. prewous educational opw)rtunity. or disability. and actwety Wo<S to recruit students from non-traditional backgrouThJs by en(x)uraging ap[1[0nS from urnlerrfepresenled groups. Financial support is available to UTKlergraduates from the UK or the EU to assist them with the costs of tuition fees and living costs whilst at the College. In addilson to the student loans promded by the student Loans Company that are available to undergraduates from wilhin the EU, other financial support from the University and the COle is available to undergraduates who are from households where inGome is below a rtain level. A range of financial support is also available to Graduate students. Oxford Bursaries are avadable to UK undergraduates from households aesSed as having a sufficienlty low income. In the 2020121 year. 82 of the College's undergraduales received an Oxford Opportunity Bursary fun(kd joindy by Ihe University and the Cdw. wilh a total value of £245k. In 2011112 the College introduced a means-iested Hertford Undergraduate Bursary of£1.ocKJ, for undergraduates. This bursary was extended to EU skn(knts in 2012113. In 2020121, 115 Hertft)wd students were awarded HertFord Undergraduate Butsary. Graduate funding is also F0ded in the fom of scholaT5hips and gnts. The College awarded a total of £308k in 2020r21 for this purwse. The College also offers Student sUprt in the form of grdnts lo both undergraduate and graduate students who eXperier unexpected financial hardship. for a¢•Jemic related travel. or as rent subsidies. In 2020121 the College dislribuled £153k to supw)rt students in this way.
HERTFORD COLLEGE Report of the Goveming Body Year ended 31 July 2021 ACADEMIC REVIEW We welcomed five new fellows to the tx)Ilege in 2020-21.. Ihree of these were replacements (Maths, Economics, Mediunel, however the seoMd Philosophy fellow and the Se(d Arthae0l(Y fellow are additions to strengthen our provision, in line with the current acadern strategy. This means IhaL in the last four years. sixteen new joint apEKHntments have been added lo the Cdlege's Goveming Body. Of those sen. len are women. which has nde a signifi(2nt alterati( to the profile of the College. Havi more fell(Y•VS provides greater strength in depth not only to meet our leaching commwtments but also to oversee and administer all the other activities of Ihe College. Given the challenges of the palldern. this greater resilien has been welcom&J. As highlighted in previous reviews. a Signifi1 amount of teaching within the Cole is supplied by stipendiary lecturers, who do not tKAd either a fellowship or a joint appK)intmenl with the University. We welcomed Iwelve new lethrers and teaching assistants to the cOle in 2020-21. We conkn'nued our efforts lo integrate and support this cohort more fulty this last year we rdn our comprehensive induGtio prografflme lor fellows and lecturers over Iwo days in September. and the temily tutors, meetings for teaching staff focussed on sharing Xpenen of remote teaching ar)d preparations for online exams. In such an unusual year, we made space for looknng to the future: we ran extensive consultation amorosl academic staff for the Hertford 2030 strategy. a key aspiration of which is to explore ways of SuppOng academic (3reers, in pathcular in relation to research. Following the UCAS Confirmation cyde in Aust 2020. we welrxjmd the largest ever undergraduate fresher cohort. of 133, in October 2020. 85% oflhe gn)up are UK students, of which 81 Ye from state schoo15 and 60% from disadvantaged backgrounds (as deterrnined by swio-e(x)nomic andlor educational infomabonl. The pandemic conb.nued to affect aN aspects oflhe Cdlege's a(xdemic provision. At the start of the year, we quictdy recognised the relian which continued remote study plad on IT provision, and the College purchased supplementary tablet dèmces lo loan to students aThJ academic slaff for effectwe remote leaching, espeaaNy for subjects involving a reader or sixeen sharing. The cole'S Porter Fellow in ac2demic skills, Dr Catherine Sloan, ¢onth"nued lo devew materwls for remote study and leaching. She also supported students through the now well-established programme ofworkshops and one-to-one meeliThJs. The College's librarian Alice Roques remaird ath.ve firKJing online reS[ceS and helping students in other ways to find the material required lor their sludie5. Our students demonstrated hard work and tenacity in relan to examinations and assessments. Whilst the Norrington Tabla. which compares undergraduate Finals resulls by Tr1ege. has yet been published. within co]leg&, 57 students retained their academ scholarship and 52 students were promoted to a sCarship over the course of the year following first da55 perf0mlan in university examinations or Colle ¢xAlections. Prizes were awarded to 46 students delivering outstanding perf0rrnall in final exams. Fifteen students won PEizes from the UnIVety,$ faculties and departments against strff compelttion from other colleges. We have continued to run an extensive outreach prcoramme, engaging primarily with schools and students in our link regions of Camden. Essex (induding Swlhend-on-sea and Thurrockl. Medway and Peterborough. The vast majority of outreach actiwties have been conducted online this year. with new programmes supplementing existing iniliatives in light of the pandemic. NDW in its third year. our Unsung Hero8s of Science wdeo competitK)n conunues to attract great interest. especially from female students and those from BAME bad(grounds. This year we reiVed a record 70 entries and shortlisted 30. which were watched on YouTube rrK)re than 24,000 times. The Ix)mpetition prizes were provided by the Royal Institution. which we lo work with on the compets.tion again in the futute. Once again, we ran Swrflstream progrdmme ol sustained webinars for Students in Medway and hope to develop this in fvture with an in-petson wdential element New online initiatives included Next Steps Essex, a s8ries of informatK)n. advice and gUKlan webinars organised joinuy with Emmanuel College Cambridge., sustained Geography an(J Physits dubs which brought together prospective applicants witFI current students lo develop their subject-specific sknlls and interests.. Teacher Forums organi5ed with our
HERTFORD COLLEGE Report of the Goveming Body Year ènded 31 July 2021 Oxford for East England (nSortIU partners" and springtard. anoiher (x)nsorknum activty which engaged graduate students to create an online reFN)sitory of stretching super-(XJtrTrcular vid)S. Our Iwo outreath officers also Papated in the cwdination of Universtty-wide remote interview workshops al the planning, delivery aTMI evatuakn phases. We organised three virtual open days. creating recorded cwtent, hosting live-streamed events. and utilising student ambassadors in Q&A sessions and text4)ased chats. In 2020-21 we had 114 trained student ambassadors, representing around a quarter of the College's undergraduates. Six Tanner Pfizes were awarded to the most active ambassadors in recognition of their hard work and dedication. The most powerhjl derrK)nstration of our access work is admissKJrts. The College receiveAJ 968 appIltiOnS in October 2020. ofwhich 900 were direct appltionS, a 38.2 per cent increase on 2019, and making Hertford Ihe 8th tnost popular campus selection based on number of direct applicants. The latest University statistical release shows that we c(fftts"nue to be at Ihe forefront of in many respeGts- especially state sdKKI intake (74.8 per t Ihree-year rolling average)- Folli)wing Ihe decision to move admissi{)S intervEws online for all shortlisted candidates in December 2020, we ran a series of briefing sessions our admith.ng tut(Ks. discussiry practical atrangements and highlighting the [d to take due consyderation of the differenlial impact of the pandemic on students. leaming and attainrnent. We participated in the Un[versiS,OppOrtUnlty Oxford. scheme for students from disadvantaged backgrounds. making four offer5 under the scheme and a further 19 standard offers to stellts with the relevant eligibility. In restK)n5e io the educalional disnjption and associated challenges of the pandemic, we Or again put in pl£ a programme of offer-hokler support, including enhanced comrmjnications. webinat5, sIMdy skills sessions. electronic reading lists, and college tours at key moments during the perK#Y betw offer-making in January 2021 and the Stents, atrival in October 2D21. FINANCIAL REVIEW The Finanaal Statements for 2020r21 fdh)w Ihe requ1rerrnts of FRS102. The impact of the COVID 19 Pandemic £tinld to be a significant factor. Redu(xJ Visiting Student nurnbers, and another fvll of tion-residence for rrK)St undergraduates a(xounted for the majority of the drop of some £727k in teaching. research and residential incorne. There was no conferen(E business income during the year (versus £2.2m YE Juty 2020). Investment incoff* was down almost 150 although at £2.46m was better than predicted. DonatnS and Legacies al £1.38ffl were at a sitllilar level lo the previous year, and again better than antiupaled. The Colege continued to make use of the Coronavinjs Job Retenlion Scheme al various points of the year. which provided a £655k positive contn"bution. Overall. InMe (before gains on disposal of £7m) was down a fvrther £3.2m on the prevmjus year. This was expected. as the fijll year impatx of rK) cA)nference in(x)me took fvll effect. Expenditure was also significandy lower. with no direcl costs for Conferen activtty. TehIng Costs were up, partly through an alloo3Uon of residual overheads not defrayed by Ix)nference trading. but mainly owing lo the higher staff costs associated with the realisation of the planned Academic Strategy. Overall the nel reduction in expeTrJiture at £1.37m was some way short of the inu)me loss, resulting in an overall net loss on core operations of approximatdy £1.8m. The net (negative) impaGt of COVID for the year is estimated to be around £2.9m. By contrast. the year saw a gn]ffiCant recovery in the value of invesknents. wth nel gains ofjust over £13m, providing the majority of the net posilive movement in fi]nds for the year of some £11.7m. The College continued to fund key caFMtal investrnent projects. taking advantage of the redUd use of the estates to progress work5 ahead of schedule. The net cash demand of core operations and this capital investrnent amounted to arourn1 £6m. which was fijnded thrryjgh available liquid investments. The College issued a fvtrther private nd in the amount of £20m. to SUPFK)rt fulure capital projects, with a term of 30 yea. al a fixed coupon of 2.31% per annurn. The ndS retEived have been invested in OUEM fvnds pending drawdown for developments. al a current distn"bution rate of 4.25'/ty per annum. On the final balance sheet date the College revalued and transferred approximately £7m of residential properties lo investment holdings, resulting in an equivalent irKxease in unrestricted funds.
HERTFORO COLLEGE Report of the Governing Body Year ended 31 July 2021 Reserves policy The College's reseNes policy is to mairtsin a minimum of three months. free reserves to enable it to meet its short4erm finawial obligations in the event of an xpected revenue sh¢Jrtfall, to allow the College to be managed effioenly and to provide a Ixjffer that would ensure uninterTupled senrices. The College's free reserves at the year-erKI arrKfyunted £8.113m. representing retained unrestricted income reserves, exduding an amount of£14.3m f(K the b(y)k value of fiXj assets, the reserve against future Pension Deffiats required by the implementatTrM of FRS1021£1.8m), and £500k reserves for the Undergraduate Bursary Fund {whii guarantee5 a minimum of five years, futKling for the scheme). The goveming bimty have reviewed the free reseNes and are satisffied that the level offree reserves, the current cash flow projections. and the availability of external finanung facilities would provide an adequate safety net in the event of adverse operating ¢ditiOns. Total funds of the Cdlege and its wbsidiary at the yearond amounted to £97.6m (2020.. £79.2m}. This indudes endowment capital of £70.7m, and unspent restricbj income fijnds tolalling £5.8m. The Fellows have assessed the CAJllege's #I"ty to contire as a going concem. The Fellows have considered sev8ra factows when foming lhr rLTrnc¥Jsion as to whether the use of the going o)ncem basis is apwopriate when preparing these finanaal slalements. including a review of utKlated forecasts. and a consideration of key risks- indudiTrJ the impact of Covvj 19- that o)uld impact the College. and the latest available management infottnation. Cowd 19 has had a Signifint impad on the College. Both the budget and fDrerAst include additional costs and savirys arising from our response to the pandemlc and we have me prudent assumpkn.ons 5urrr)urKliry our in(x)me slreams. The College has a large endowment, and finanual perfomiance cOntinl to be monitored regularly. The Fellows have scrutinised the key 2ssumpbons within the finanual budget and fore(xst. and are satisfied that the current level of free reserves. avallable investment and cash balances are aduate to meet the College's obligats.ons as they f211 due. Having regards to the atN)ve. the Fellows are satisfied that there are no material uniErtainlies around the deiision to adopt the going (nM basis of a(xounting in preparing these financial statements. Risk management The College has on-going prtte&ses which operated throUgtr financsal year for identifying. evaluating and marbaging the priniipal risks arKJ un(trtainties faced by the College and its subsidiary in undertak1.g their ackn"vities. The College Idente5 atKI regularly revpws the risks il fas, the potential impact of each risk, the likelihood of recurrence. the severity of impact, and the Steps taken to mitigate each particular risk. Principal nsks are assessed by the Treasury Commtttee. and nK)re detsiled risks by other committees (e.y. Health and Safety Committee). lege Offic3 and Heads of Department. Training courses and other forms of career development are tnade available to Trustees and members of staff to enhance their skills in risk-related areas. The Goveming Body, wFK> have ultimate reSpOnbilty for managing any risks faced by the C(Alege, have reviewed the pro55e5 in place for managing risk and the principal identified risks to which the Co11Je and its subsidiary are exposed and have corKluded that robusl systems are in pla to rnanage these risks. The principal risks and uncertainties faced by the College and its subsidiary indude.. Governance risks- e.g. inappropnate Organisatior structure, dJffiLwlties re(xutting twstees wth relevant skills. conllict of interesl- Operational risks- e.g. see qualty and developnnt. contract priang. employment issues. health and safety issues" fraud and misappropriation; Finanaal risks- e.g. accuracy aTKI timeliness of financial infomation, adequacy of reserves and cash flow, diversity of income sour(xs, investment management. External risks- e.g. public percepbon and atherse publirity. demographic changes. govemment wlicy. and Compliance with law and regulation- e.g. breach of trust law. employment law. and regulatwe 10
HERTFORD COLLEGE Report of the Governing Body Year gnded 31 July 2021 requirements of parb"cular actiwtses yJch as fun(Kraising arKI infomiats.on Security. Strategies for managing the risks identified by the Cdlege as deS(bed above include.. Operating strtKtured and fonyjalised pro[eS for the Identifican. assessment, and nnagement of the reSnSe to risk. Establishing the appropriate committees to wBure oversight of dl key acbv(ties. with responsibility for formulating m)dans to GOverrn9 B(ty: Providing appropriate training to air members of staff. and at the induction of new Felh)ws; Ensuring lntabilIty of Co]lege offir$ to the approwate wmmittee, and for the committees in tum to be accountable to the Governing Body: Developing and irylementing key FM)Iic4es &ross the main ams of actiwty of the Ccllege. induding, for example. admissions licY. health & safety policy, and infomiation security policy" Ensuring the apprDpriale Insuran F1105 are in place. and reviewed regularfy. In light of the COVID pandemic. the College has deveknped and operates a COVID Resse Framewo. based on detailed risk assessment of all OperanS and acttvities in the context of COVID transmission and mitigation. This framew is admiw7iStered by a dedi(ated COVID group. appointed by Goveming Body. Fundraising In the 2020-21 financial year. Hertford College exceeded its £1m target for sh receiveil. for the fourth year. In total. £1.406m was reved. Vth a further £977k pl&lged over the nexl fve years. Our donor numbers increasèd by this year to 906 (from 805 in 2019-201. and the Trumber of donors cJ)tnmitti to a regular monthly gift conbnued to arise. The rise in doror numtErs is attributable to having held a Id- elhon during this financial year. as well as a small email ffijndraising campatgn that attracted almost ex- clusively new donors. 2020-21 was the m05t successfijl year to dat& for legaaes. with £784k r1ved. The ma}7ty of this total came from two alumni for whom Hertford was the sole benefi(iary of their estates. Beyond this, donors conkn.nued to SUPFM)rt a raroe of projects. illduding pital proiects, teaching and research. sclKJlarships. bursaries, and outreath a1v[tIeS. Our unrestrirted fund ntinUeS to receive Ihe ffiost donations duting the year. The ongoing COVID-19 pandemic meant that all alumni relatlons events took pla Ole. We held net- worktng events organised by subjed and geographic locath)n. as well as strategy briefing sessions. We also organised several events aimed at sludents in whith alumni were able to share their experiences and offer practical advitE for Ihe future. We have maintained the level of engagement on scxial media through targeted campaigns. and our e- bulletins continue to have an open rate ofaround 45%. This year. we took the decision to rrnve The Bridge, which fealures news. experien and searCh by Felk)ws and alumni. lo an online fom7at by d fault, and Irom eady 2022 this will now be available as a year-round blog. Our Magazine and Donor R port will rernain printed publicatK)ns. In May 2021 the college announced Hertf(Kd 2030, our aspiralions for the next ten years. Worfd-dass facilities are at the ntre of our Hertft)rd 2030 pL4ns. and consequenuy priority for 2021-22 will be on securing support for capital proieGts. with a sfiC focus on Ihe renovation and extension of the main college library. Hertford 2030 atso renews our commitment to elimirtaling finance as a barrier, delivering excellent teaching and research, and provKlirg an unrrvalled siudent experience. These areas will con- tinue to be priorities for our fundraisiro. 11
HERTFORD COLLEGE Report of the Goveming Body Year ended 31 July 2021 Hertford College is committed to best practi in reL3tron to all fundraising acts"vities. The in-lse Devel- opment team c&ordinate ndraising acbvities. and are subject to the scrutiny of the Development Com- mittee and college Governing B(xly. Hertford Cdlege is registered with the Fundr8isiro Regulator. The college has protocols and procedures to ensure that all (DIge fundraising is ¢Jpen, honest and rèspect- ful, and that it adheres to legal and fundraIng guidelines. Hertford does not eThJage any PrOfeOnal third parties to 13ry out fvThYraising activities on ils tEhalf. Investment policy. objectiv85 and perforniance The College's Statement of Investment Prinapks sets out the folbwTrJ aims.. Generate inGome lo support the Cdlege's charitable educ3tional aims. Improve the educats'Orl experien(E of current and future generations of students and to PUf5ue eXcellere in scholarship by means of teaching and researth and the provision of thè cultural and sCla1 context which wpports this. and Produce the optimal 5usL91nab reknm given the (xAlege's low risk tolerance and to preSe the value of investments against the Ihreat of inffation over the long temi. The investment strategy and performance is monitored by the InvestsnentAdvisory Committee which in turn reports to the College's Treasury Committee. At the year end, the value of the College's investfflents was £115.7m {2020 £86.5m}. of which £68.6m represents erKlowed or restiicted funds. The lolal investmenl income was c. 2.5°A gross (average value). The College's investment objectives are to balan ujrrent and fuEure benefioary needs by". maintaining (at least) the value of the investments in real temis., producing a consistent and sustainable amount to support experKliture" and delivering these ok¥"ectives within acceptable levels of risk. To meet these objectives the CdlesE's investrnents of its permarn1 endowed funds are managed on 8 total retum basis, maintaining diversificalion a(xoss a range of asset classes in order to produ an appropriate balan between risk and retum. In line with this approach. the College statytes allow the College lo invest permanent erKlOynents to MMISe the related totsl relurn and to make available for expenditure eath year an appropnate prowrtK)n of the unapplied total retum. The vaue date for establishing the initial vall& of the Inveslrner)t Fund and the Unapplied Total Return was 31" Juty 2009. The investment strategy, policy and perf0rnan is mnrtored by the Investnt Committee. Al the year end, the College's long term investments Ipern*nent endoWnI only). combinitwJ securit1 and property investments. totall1 £70.6m. Direct InC¥M earned on these investsnents a)Unted lo £1.79m. and nel valve gains were £11.5m. Under the total return accounting basis. it is the Goveming B(xtys rdicy to extsact as income 4.250/0 of the value of the relevant investments. However. to smooth and moderate. the amounts withdrawn are calculated on the average of the year end values in each of the last five years. Due to fluctuating investment values over the previous five years. Ihe effective amounts withdrawn are rAleY may vary from the nominal rate. For the year ending Juty 31st 2021, an amount of £3_2m was withdrawn as income. The lege also operates a KM)licy of aPp"llg an amount of the UTR to the Invesknent Fund to preserve ils real value. This is set based on Ihe most re(xnt RPI at the balall sheet date. For the year ending July 31 St 2021. £1.7m was transferred. represenb.ng 3.811A of Ihe Investment Fund value. The Governing Body wll keep the level of income withdrawn under review to balan the needs and interests of cuent and future benefiarleS ofthe Cdlege's thities. The Govérning is satisFied that the overall perforn)an of investment acttvities for the year has met the objecltves set. 12
HERTFORD COLLEGE Report of the Governing Body Year ended 31 Juty 2021 FUTURE PLANS The College has agreed a 10 year plan to develop ib buildings and facililies (Ihe Estates strategKI. This wll e[oMpasS Signifint refutbishment works (e.g. uradIng student accomm(Klationl. the expansion of existing faulities (e.g. a new Library), and provision of new facilities (e.g. additional graduate accommThJation). The anticipated expenditure over that hoTtzon is around £75m, to be found from a c(xnbination of reserves, fundraising. bond capital. and other fina arrangements. Several of the projects under this strategy are now undetway. The immediate impact of COVID (on finaal resources and restrictK)ns on activities) has been a suspension of most new Estates work for the time ing. Essential vmrks. and those in prcvJress, have continued. STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBIUTIES The Goveming Body is resportsible for preparing the Report of the Goveming Body arKI the financial statements in accorda[ with aliCable law and reguiatlons. Charity law requires the Goveming Body to prepare finanryal statements for each financial year. Under that law the Goveming Body have prepared the finaat statetnents in accordance with United Kingdom Generally Apted Accounting Practice (United lfjngth)m AcuxJntiTrJ Standards and applicable law). induding Financial Reporting Standard 102: The Financial Reporb"ng Standard Applicable in the UK and Republic of Ireland (FRS 102). UTer charity law the Goveming Body must not apwove the financial slatements Unl they are 5ali5fied that they give a true and fair view of Ihe state of affairs of the College and of its net incc>me or expenditure for that period. In preparing these finarKaal statements, the Goveming Body is required to: seleGt the most suitable acrxbunts.ng rM)licses arKI thw apply thern conSistenY' make judgments arKJ acc(MJnting estimates that are reasonable and pnKlent $tsle whether applicaiAe accounting stsndarts. indudiro FRS 102. have been followed, subject to any material departures disclosed atKI explained in the financial statements,. state whether a Sktement of Rewmmended Practi {SORP) applies and has been followed, subject to any material departures which are explained in Ihe financial s12tements" prepare the fina181 statements on the going (x)tKem basis unless it is inappropriate to presume Ihat the College will continue lo operate. The Governing Body is resTK)nsibie for keeFNng proper a(Lounting records that are sufficlent to show and explain the College's transacb.ons and disdose with reasonable accuracy at any tiTne the financial position of the College and enable them to ensure that the ffinancial statements comply Mth the Charities Act 2011. They are also responsible foi safeguarding the assets of the College and ensuring their proper application under charity law and hence for tsking reasonatle sleps for the prevention and dete¢Éion of fraud and other irregularities. Approved by the Governing Body on 24th November 2021 and spaned on [15 behalf by.. Mr J Clark Bursar 13
HERTFORD COLLEGE Report of the Auditors Year ended 31 July 2021 Independent Auditorfs Report to the TteeS of Hertford College Opinion We have audited the financial statements ol Hertford Cdlege for the year ended 31 Juty 2021 which m- prise the Con&lidated Statemetrt of Financial Activities. Consolidated and College Balan Sheets. Con- solidated Statement of Cash Flows and notes lo the financkil slatements. indudiT)g signrfi(2nt accounting policies. The finanaal reporting frawnework that has apFAied in their prEparation is aFplTrcable law and United Kingdom ACCnng Standards, induding Financial Rew)rtiry Standard 102 The Financial Report- ing Standard applitxble in the UK Republic of Ireland (Unrted Kingth)m GenerallyA(trpted Accounting PractiGe). In our opinion the financial statements- give a true and fair view of the stale of the gmup's and the parent charity's affairs 85 at 31 July 2021 and ofthe group's income arKJ receipts of endowments and expen(lire. for the year then have been properfy prepared in athanCe with Unite(l Kingdom GealIyAceePted AcuntIng Pracb"(E,' and have been prepared in ac(x)rdance with the requirewnents of the Charities Act 2011. Basis for opinion We [Ucted our audit in ac(udance wtth IntematK)nal StaThlards Auditing (UK) (ISAS {UK)) and applicable law. (Ajr responsibilities under those standards are further described in the Auditor's responsi- bililies for the audit of the financial statements seclion of wr repott We are Indendent of the group in aGG0rdan wth the ethic31 requirements that are rdevant to our audit of the financial statemen15 in the UK. including the FRC'S Ethical Slandard. and we have fulfilled our other ethi1 responsibilities in accord- an with these requirements. We believe that Ihe audit eviden we have obtained is suffiixent and ap- propriate to provide a basis for our opinion. Concluslons relating to golng ¢oncern In auditing the finan(ial statements, we have (x)nduded that the tnjstee's Ltse of the going cOnM basis ol accounting in the preparatK)n of the finanoal statements is appropriate. Based on the work we have perf(xmed, we have not identified any material uncertainties relaling lo events or conditions thaL Ir1ViduallY or cdlecbvely. may cast significant doubton the chartty or the group's ability lo conlinue as a going concem for a Kx1 of at least twefve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilibes of Ihe ttustees with respect to going are described in the relevant sections of this report. Other Information The trustees are responsible for the other inforrnation o)ntained wtlhin the annual reFM)rt. The other infor- mation comprises the infomiation included in the annual report. other than the financ4al statements and our auditor's report thereon. Our opinion on the financial ststements does not (xiver Ihe other informatK)n and. eXpl to the extent othepwise expli(itly slated in our rep[t. we do not express any fomi of assurar condusion thereon. Our responsibility is to read the other informati)n aThY. in doing so. consider whether the other information is materially iTrcorbSiStent with the financial slalements or our kTrCAvdge rtjtained in the audit or otherwise appears lo be materially misstated. If we identify rnaterial inconsistenues or apparent material mis- statewnents, we are required to detemiine whetherlhi8 gNes rise to a material misststemenl in the fitwcial ststements themselves. If. based on the work we have perf0Ml. we Conclu that there is a material misstatement of this other information, we are required to rep(xi that facL We have nothing to report in this regard. 14
HERTFORD COLLEGE Report of the Auditors Year ended 31 July 2021 Matters on which we are required to report by exceptlon We have nothing to report in respect of the followng matteTS in lation to whth the Chartties IAcGounts and Reports) Regulations 2008 requires LL8 to rep(xito you if. in our opinion: the information gwen in the firAncial statements is In(X)S1Stent in any material respect with the trustees. report" or sufficient and propor accountirwJ records have not been kept by the parent chattty" or the financial statements are not in agreement with the aixxyJnting records and returns.. or we have not received all the information and explanabons we rul[E f(K our audit Responslbilities of trustses As explained more fully in the trustees, resp)nsibilities statemen( the tnjstees are reswnsib]e for the preparation of the financial statements and for being satisfied that they grve a true and fair view, and for such intemal control as the trustees detemiine is necessary lo enable the preparation of financial state- ments thal are free from material misstatemen( whether due to frdud or error. In preparing the finanryal statements. the trustees are responsitAe for assessing the group and the parent Charity's ability to continue as a going concem. disclosing. as applicable. matters related to going cnCern and uwng the going COnM basis of acccxmling unless Ihe tsustees either intend to liquidate the charity or to Gease operations, or have no realistic alternatNe but to so. Auditorfs responslbllities for thg audit of the finanelal statements We have been app(ynted as auditor under sectKbn of the CharitiesAct 2011. and retmyt in accordance with the Ads and relevant regulab"cffts made or hawng effect thereunder. Our ot4'eGtnie5 are lo obtain reasonable asSUrare about whether the financial statements as a whole are free from material misslatement. whether due to fraLwJ oy error, and to issue an auditor's reportthat inde5 our opinion. Reasonable assurance is a high level of assurance. but is not a guarantee that an audit con- ducted in accordan wth ISAS {UK) will ahvays delect a material misslatemenl when it exists. Misslat ments can arise from fraud or error arKI are Ix)nsidered malerk41 rf. individually or in the aggregate, they Ix)uld reasonably te exped lo Influen Ihe e(xJnomic deiisK)ns of user5 taken on the basis of these financial statements. Detsils of the extent to which the audit was considered capaNe of detecting irregulartties. induding fraud and norFcompliance with laws and regulations are sat out below. A further description of our responsibilities for the audit of the financial staternents is IoL3tj on the Finan- cial Rewrting Council's website aL' www.frc. .uklaudrtorsres sibilities. This description forms part of our auditor's reFOrt. Extgnt to which the audft was Considered ¢apable of detecting Irregularftles. Includlng fraud Irregvlaribes. indudirwJ fraud, are inStanS of non-complian wtth laws aThl regulations. We identified and assessed the risks of material misststement of the financia] stalements from irregularities, whether due tofraud or error, and discussed these behveen our audit team. We Ihen designed and perfomied audit proureS reswfynsive to those risks. induding tainIng audit ewdence sufficient and appropriate lo prc vide a basis for our opin[c. We obtained an understanding of the legal a1 regulatory frameworks within which the parent charity and group operates. focusing on those laws and regulations that have a direct effect on the deterniination of material amounts and disclosures in the finanaal statements. Th laws and regulations we considered in this context were taxation legislation, the Charities Act 2011 together the Charities SORP (FRS 1021. We assessed the required Complian with these laws and regulations as part of our audit prOdureS on the related firbancial statement items. In addition. we considered provisi0r of other laws and regulations that do not have a direct effect on the financial statements but compliance wlh which Mh1 be bjndamental to the parent charlS and the group's ability to operate or to avoid a material penalty. We also consdered the opportuniti&s and incen- lives that may exist within the parent charity and the group for fraud. The other laws and regulations we 15
HERTFORD COLLEGE Roport of the Auditors Year ended 31 July 2021 considered in this context for the group were era] Data ProtedJ"on Regulations and Health and Safety regulations. Auditng standards limit the required audit pr(Kedures to idwttify non-complian wlh these laws and reg- ulations to enquiry of the Trustees a1 oth8T management and inspeclion of regulatory and legal (x)rre- spondence. if any. We identified the greatest risk of material impact on the financid statements from irregularities, induding fraud, to be within the recognition of in(x)me, and the overriL of controls by management. Our audit pro- cedures to respond to risk of income recognitKJn iluded selectiThJ a sample of income during the year, agreeing back lo the relevant d0MentalK)n and ensuring it has been rerA)gnised coThectty. Our audit procedures to resF)OTKJ to the risk of management override I1led enquiries of management about e1r own idenlificatii)n and assessment of the risks of irregulattti"es. sample testing on the tM)sting of joumals, reviewing accounting eslimales for biases. reviewing regulatory ureSnden with the Charity Comnws- sion and reling minutes of meetirws of those djarged wtlh govemance. Owing lo the inherent limitations of an aLvJit. there is an unavoidable risk that we may not have detected some material misstaiemenls in the financial slatements, even though we have propedy planned and per- formed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulakn.ons (irregularities) is from the events and trdnsactions llected in the financial slate- ents, the less likely the inherently limited [(xEdureS required by auditing standards would identify it. I addition. as wilh any audit there remained a higher risk of non-detection of irregularities, as these may involve cdlusion, forgery. intentional omissions, misrepresentatmms. or the override of intemal controls. We are not respon&ble for preventing non-(x)mplFance and nn0t be expected to detect non-compliance with all laws and regulations. Use ofour report This report is made solely to the (lari$ trustees. as a body, in accordance Part 4 of the Charities (accounts and Reports) Regulations 2008. Our audit work has been urKJertaken so that we might stale to the Ghartty's trustees those matters we are required to state lo them in an audttor's retKKt and for no other purpose. To the fullest extent pemiitted by law. we (b not a(xept or assurne responsibility to anyone other than the charity and Ihe d)arity's trustees as a bcKly. for (Mjr audit work. for this report. or for the opinK)ns we have formed. Crowe U.K. LLP Statutory Audit London Date.. 1st December 2021 Crowe U.K. LLP is eli91te for appointment as auditor of the tharity by virtue of ils eluibility forappointment as auditor of a company under sectton 1212 of the Companies Act 20. 16
HERTFORD COLLEGE statement of Accounting Policies Year ended 31 Juty 2021 Statement of Accounting Policies 1. Scope of the financial statements The financial statements present the conlida1 Statement of Financial Activtbes (SOFAI. the Con501idated and College Balance Shts and the Consolidated Cash Flow Staternent of Cash Flows for the College and its wTrKAly owned subsidiaries Hertford Programmes Limtted and Hertford College Design and Build Limited. The subsidraries have been consoiKlaled from the date of their fomiakn"on, being the dale from which the CtAlege has exercised control thri)ugh voting rights in the subsidiaries. No separate SOFA has been presented for the College alone as (xjrrenuy permitted by the Charity Commission a Con(Onary basis for the filing of consolKlated financial statements. Basis of accounting The College's individual and consolidated finanoal statements have bn prepared accordance with United KingdomActx)unl"ng Standards. in parls(JJlar'FRS 102.. The Financ1 Rerx)rting Standard applicable in the UK and Republi¢ of Ireland. (FRS 102). The College is a public benefit entity for the purwses of FRS 102 and a registered tharity. The College has Iherpfore also prepared its indidual aThJ consolidated financial s&tements in a(xordance wth 'The Ststement of RecomrrEnded Praclice appliiable to charities preparing their financial slatements in aCrdan with FRS 102, (The Charities SORP IFRS 102)). Having reviewed the funding facilities available lo the Cdlege together with the expected ongoing demand for places aThJ the College's fjjture proierted (ash flows, the Goveming Body have a reasonable expectation that the Coll&Je has adequate resources to conts.nue its activities for the foreseeable fvre and o)nsider that there were no material un(Ertainties over the College's financial viability. AccordirvJly, they also continue to adopt the goiffj cOntM basi5 in prepariThJ the finan(ial statements a5 ouuined in the Statement of Acnting and ReKKJrbng Responsibilities on page 12 and to adopt the histori1 (x)st basis, expt for the measurement of investments and rtain financial assets and liabilities al fair value v7 Trnvements in value reported within the Statement of Financial Activities (SOFA). The prirripal actx)unling Fdicies adopied are set out below and have been applied consislenuy througFtht the year. The accounts {financial slatements) have been prepared to give a 'true and fairf view and have departed from the Charities (Accounts arvj Reports) Regulations 2(K)8 only to the extent required to provide a 'true and fair view.. This departure has involved folhjwing the Statement of Recommended Practice applicable to charities preparing their ac£ounts in accordance with the Financial Reporting Standard applicable in the UK and Republ of Ireland (FRS 102) issued on 16 July 2014 rather than the previous Statetnent of Recommended Prac11.. Accounting arKJ Reporbng by Charities whith was effective from 1 April 2005 which has sIre withdrawn. 2. Accounting judgements and estimation uncertainty In preparing financial statements it is rE(Essary to make certain judgements. estimates and assumptions that affect the aTrUnts rec(NJnised in the financial staternents. The following judgements and estimates are o)nsKlered by the Governing Bcty to have Most signthcant effect on affK)unts recogntsed in the financial ststements. The Goveming Body. in applying the cnting policies. have induded an estimate for the College's share of Ihe USS and OSPS pension Sche liatM"lities. arKI an estiwnate of the useful economic Ie of its lIldIngS. Othenvise no judgernerts were required th* have a signifi¢2nl effect on the amounts recognised in the financial statements. The College c21culales its liability for USS pension deffieit based the cutrent agreed schedule of defiat contri1tiOnS wth reference to the latest scheme valuation. 3. Income recognltlon All income is rec4)gnised once Ihe College has entitlement to the in(x)me. Ihe economic tenefit is probable. and the anThJJnl can be rdiaw measured. 17
HERTFORD COLLEGE Statement of Accountlng Poll¢ies Y8arended 31 July 2021 Income from fees, Office for Stud•TrtS 5UPPOrt and other charges for services Fees reiEivable, less any scholarships. bursaiies or other allowances granted from the College unrestricted funds. Office for Students sup1K and tharges for Servi and use of the premises are reu)gnised in the period in which Ihe related Servi is provided. Income from donations, grants and legacies t)onations aThJ grants that do not impose specific fvrture pwFotManre1ated other specific conditions are recognised on the date on whith the charity has entiuement to the resource. the amount can be rdiably measured arKI the ecoTKxnic benefit to the College of the donation or grant is probable. Donations and grants subject to performantE•related corKlitions are recognised as and when those conditions are rnet. Donations and granls subjeci to other specik wnditions are recognised as those conditions are rnet or Iheir fulfilment is wholly within the contrd of the College and it is probable that the specrfied corKlttions wll be met. Legacies are reGoKJnised followirwJ grant of probate and once the College has reiVed suffiuent information from the executor(s} of the dased'S estate to be satisfied that the gift can reliably measured and that the euinomic benefft to the Cdlege is probable. Donations. grants arKI legacies accnjiry for the general purposes of the CrAty are credited to unrestricted funds. Donations. grants arKJ legaixes whth are subj1 to ndItsOn$ as to their use imposed by the donor or set by the terrns of an appeal are (x&dited to the relevant restrictd fund or. where the donation, grant or legacy is required to be held as capital. to the endowment funds. Where donations a reed in kind {as dIStit from cash or other nK)netary assets). they are measured at the fair value of those assets at the date of the gifL- Investmont income Interest on bank balarS is accounted lor on an accTual basis interest re(X)gni1 in the p8riod to which the interest retales. Iru>me from fix&J interest debt securities is recoJni%ed using the effective interest rate thOd. Dividend InMe and similar distributions are recA)gnised the dale the share interest becomes ex- dwidend or when the right to the dividend (an be eslablished. Irwme from investment properties És recognised in the peri¢ to whith Ihe rental income relates. Total Relum accounting PrilpleS have been adopted in lation to investments held as part of the permarbent endowment. The (xryiTrJ value of the tnJ$t for Investnnt (Ihe preserved pemianent (*pital) has been tsken as the maTket value of the relevarrt investrnents as at 31Si July 2009, together wth the ojiginal gtFt value of all subsequent end0Wrrnts received and transfe[5 from the unapplied total return approved by the Goveming BIKIY to in(xease the value of the trust for investment in line with the RPI index. The balance of the invesbnent unapplied total returns are ac(xJmulaled as a wmponent of the relevant endowment funds wth amunts from this beirvJ released to ino)me each year al the discretion of the Governing Body. 4. Expenditure Expenditure is accounted for on an a(xxuals basis. A liability and related expenditure 15 recognised when a legal or (x)nSttuctive obligation comrr&ls the College to expendiknre that probably require serfemenL the amount of which (Xn be reliably measured or estimated. Grants awarded that are not perfoMrIce4eLgted are charged as an expense as soon as a legal or construcb.ve obligation their payment arises. Grants subject to FErfonna[e-rel3led conditions are expensed as Ihg speufied conditions of the grant are meL All expenditure induding support Costs and g)vemaTh2 )sts are allotxted or apporti)ned to the applicable expenditure CategleS in the Statement of Financial ACtivitS Ilhe SOFA). 18
HERTFORD COLLEGE Statement of Accounting Policies Year ended 31 July 2021 Support costs which includes govemance c¥)sts (costs of complying with constitutional aThJ statutory requirements) and other indirect Costs are apportiwed to expenditure Categor in the SOFA based on the estimated amount attributable to that actEvity in the year. either by reference to staff time or the use made of the underfyirwJ assets. as appropriate. IrTecoverable VAT is induded with the item of expenditure to which it relates. Intra-group sales and charges between Ihe Cdlege and tts sUbdIaTIeS are exduded from tradiTrJ income and expendityjre in the consdidaled finanoal statements. 5. Leases Leases of assets that transfer substantrally all fhe risks and rewards of ownership are dassFfied as finance leases. The costs of the assets hdd under finance leases are induded within fixed assets and depreaation is charged over the Ser of the lease te and the assets, usefvl lives. Assets are assessed for impaimient at each reFKffbThJ date. The CSpOndIng capital obligations under these leases are shown as liabilities and recognised at the tower of the fair value of the leased assets and the present value ofthe nImuM lease payments. Lease payments are apwrtioned betsveen capil repayment and finance charges in the SOFA so as to achieve a (x)nstar)t rate of interest on the remaining balan of the Itability- Leases that do not transfer all the risks and rewards of ownership are dassified as operating leases. Rentals payable under operating leases are charged in the SOFA on a sts3ight line basis over the relevant lease terms. Any lease inntiveS are recogr)ised over the lease temi on a straight line basis. 6. Tangible fixed assets Land is slated al St. BuildiTrJs and equipment are stated at cost less accumulated depreciation and any accumulated impaimEnt losses. Expenditure on the acquisition or enhanment of land and (ffi the acquisith)n, constnjction and enhancement of buildings which is direcly attributable to bnnging the asset lo its working condition for its intended use and amounting lo more Ihan £25,(KJO together wth expeThliture on equipment sting more than £25.000 is capitalised. Where a part of a building or equipment is replaced and the costs capitalised. the canying value of those parts replaced is derecognised arKI exFEnsed in the SOFA. other expendilure on equipment incurred in the rv)rrnal daY-ldaY running of the College and its subsidiaries is charged to the SOFA as intxjrred. 7. Heritage Assets The College ha$ ctren to hold heritsge assets at cost. The college has a number of assets. induding items of art and historic texts Ihat meet Ihe definIn of heritage assets under the SORP. The depreciated historic st of the m40rity of these items is nil. Items purchased are recognised at cost and Items donated to the College are recognised al fair value. college has tsken advantage of the exernption within FRS 102 not to disdose ts2nsacbons before 1 January 2015 as obtaining fair values for these assets would be impracbcabte aThJ the cosl of obtaining such valuations would 0e1gh the benefits to the Use oflhese financial siatements 8. Depreciation Depreciation is provided to write off the o)st of all relevanl tangitle fixed assets. less their estimated residual value, in equal annual instattnents over theirexpE(tsJ useful enols lives as follows. Freehold properbes 30 years Ewipment 5 years Freehold land is not depreciated. The (x)st of freeho]d land assated wtth the main historic stte is not included in the balance sheet trAJt is not material. The ¢xst of Maintenan is charged in the ststernent of Financial Aclivibes in Ihe period in whith it is in]ed. 19
HERTFORD COLLEGE Statement of Accounting Policies Year 8nd8d 31 July 2021 The costs of major renovatron PTujeGts which int7ease the serwce wtential of buildings are capitalised arbd depreciated over applicable perths. 9. Investments Investrnent properties are inilk911y recognised at their ujsl and subsequenty ffasured at their fair value (market value) at each repothng date. PurGhases arKI sales of investment protrties are recognised on exchange of contracts. Listed investmenls are initially measured at their u)st and subsequenty measured at theirfair value al each reporting date. Fair value is based on their qU0j p£ at the balance sheet date without deductior) of the estimaled fulure selling (x)sls Investments Such as hedge fvnds and wvate equty funds which have no readily identifjable market value are initially measured at their (x)sts and subsequently measured at their fair value at each repoitng dale without deduction of the estimated future selling costs. Fair value is based on the most recent valuations available from their respective furKI managers. Changes in fair value aTwJ gains and losses arlsirwj on the disposal of investments are credite(l or charged lo the inrx)me or expenditure sectk)n of the SOFA as 'gains or losses on investments, arKI are allocated to the fund holding or disFIrj of the relevant investment. 10. Olher financial instruments Cash and cash equivalents Cash and (3sh equivalents indude (zsh at banks and in hand and short term detxjstls with a maturity date of three months or less. Debtor5 and cr8dltors Debtors and creditors r1Vable or payatAe within one year of the reporting date are carried at their at Iransaction price. Debtors and cTrdilors that are receNable or payable in more than one year 8fHJ not subj'ect lo a market rate of interest are measL5red at Ihe present value of the expected future rlpt¥ or payment disc(x]nted at a market rate of interest. 11. Stocks Stocks are valued al the lower of cost and net reiSable value. cost Ing the purchase pri on a first in. fiTsI out basis. 12. Foreign currencias The frjnclional and presentation currenw of the College and its subsidiaries ss the pound sterling. Transactions denominated in forebjn currencbes during the year are tranated into FX)unds sterfing using the spot exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in feIgn CuenCieS are tranated into pounds steding at the rates applying at the reIng dale. Foreign exchange gains and losses resulting from the setllement of Iransa¢tK)ns and from the translation of monetary assets and fiabilities denominated in foreign currencies at the exchange rates at the repong date are recognised in the income and expendilure section of the SOFA. 13. Fund accounting The total funds of the College aTrY its subsMliaTies are allocated to Unrestrict1, restricted or endowment funds based on the origins of the fijnds and the terms set by the donors. Endowmenl funds are fvrther sutFdivided into perMarnt and experKlaNe. Unrestiicted funds can be used in lurlherance of the objects ofthe Coltye at the discreb.on of the )veming Bly. The Goveming BY may deo.de that part of the unrestricted furKis shall be used i lure for a specific purpose and this I11 be acc4)unted ts by transfers to appropriate designated ftjnds. 20
HERTFORD COLLEGE Statement of Accounting Policies Year ended 31 July 2021 Restricted fijnds comprise gwfts, legacies and grants where the donors have earmarked funds for speafic purposes. They consist of either gifts where the donor has specified Ihat both the rapital and any i)me arising musl be used for the purposes given or the income on grfts where the donor has required that the capital mainlained and the irKJ)rne used for Sc[fiC purposes. Peimanent endowment fijnds arise where donors specrfy that Ihe funds should be retained as capital for the permanent beneffit of the Cdlege. Any income arisiryJ from the capital will be accounted for as unrestricted funds unless the donor has placed reslrithons on Ihe Ltse of that ir#))me. in which case it will be accounted for as a restricted fund. Expendable endowment funds are similar to peanent eTKlowment in that they have tEen given. or the College has datemiined based on the rcumstanceS that they have been gwen. for the long lemi benefit of the College. However. the Governing Bcmty rnay at their dFscretion determine to spend all or part of the txpital. 14. Pension costs The College participates in UniVereS Superannualion Scheme and the Unwersrty of Oxford Staff Pension Scheme. These schemes ale hybll"d pension schemes. promding defined benefits based on salaries as well as benefits based on contributions. The assets of the scherTES are each held in a separate trustee-administered fund. Because of the mutual nature of the schemes. the assets appIlble to the defined benefit membership are not attributed to indwidual Colleges and scheme-wide contribution rates are set. The College is therefore exwsed to aGtuarial risks associalLYl with olher Universities. arKI Colleges, employees and is unable to idenlify ils share of the underlying assets arKI liabilthes of the defirtd benefit scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102"Empknyee benefits". the College a(£ounts for the sche[rS as if they were wholly defined contribution schemes arKJ contributions to these schemes are recognised as a liability and an expense in the peric*J in which the salaries to which the contiibutions relate are payable. The College has entwed into agreenpnts for th hernes (the Rewvery Plans) that detemiine frK)w each employer within the schemes wll the overall scheme (kficits. A liabilty is recognised at each balance sheet date for the discounted value of the expected fvture contribtrtK)n payments under these past service deficit funding agreements. wtlh changes lo these liabilities being reo)gnised as an expense in the perTrc4ts in whith Ihe changes occur. 21
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H•rtlord College Consolidated Statement of Financial ktiNryties For the year gnded 31 July 2021 2021 Totsl Fun& Fund5 Tot roc INCOMEAND E14DOWMEI47S FROM: Charmablg xtlYth$: Teaching. r¥&rch res#lenb OtherTradlng Income DonatNJn5 and leleS 4.978 10 499S 5.722 1270 1,371 1.385 Inve8bnwl ino)m8 Total reknn awted 10 incwyd 0thgrincoTh To74 Income 601 123 412 1.731 13.kn 2.461 1872 17 17J102 11.4651 16.445 11697 EXPENDTtURE ON.. CharttableaGtritie5: Teaching. researth r181 nerating fur%d$: FundtaK%in9 Tradiny expethI1rn Invesbnent man2geThwrtLvsls Total Expendibiro %310 9A70 9,101 620 525 1273 728 12.627 677 1094# 133 133 819 11251 Net InGonwllExpend#uRI l%foTe galns Nel 93W@1105se51 invthetbts 12 7*) B27 11.741 t3.298 16.6471 Nat Incom8t(Expendlturel 783 10,143 18A92 6,5771 Transfer5 bothen funds 17 31 Olher reeognlsed gakns11Tr5se5 Gainsllh)ssesl (n rpvaluati(0l assets galnslllossesl on defin1 per) Sd$ Plèt m0ment Inlundsforthe year fj.783 1,597 10,112 18,492 16,5771 balatKes brought fcrward 17 14375 60.SS2 79,183 ,760 Funds ¢arf•d forward At31 JLty 21.158 5.853 97,675 79.183 23
Hertford Collegè Consolidated Ststement of Ftnan¢lal kfivits For the year ended 31 July 2020 25th tthwembpr 2021 2020 fotrd £000 Fuwls ComEANDEowENTs FROM.. eitQYible acllvrties". Teathw. r85earch and r8sthNAI OtherTradlng Inton Dotwtionsand 1480¢1•¥ 5.701 U70 675 19 2.270 1,371 3D Inknet incorne TTrt returtb allorAW Irxixn oth6rincome Tota] Incom EXPE14DITL¢RE ON: 107 1.)6 12.1511 2,872 462 12.697 1.058 11961 TÈachiry. research arJJ resthntial 8018 9.101 Fun(trsil Trd(w expenditwt InveslmeTrt man8gpmentC4%ts TDt41 Expendhure 525 2.273 525 2,2T3 728 12.827 152 154 12.184 289 Nei ln¢ome4Exndl1vrPl L*fore gans 13491 70 gainsll10s$85lon iTh¥pstMts 16301 (3241 15.6931 16,6471 Ngtlnmrnel(Expendttufv} Transfèrs ltheen lur (321 Net movement In lund&forthe year Fund ba1Ces tyoughtfotwdrd (9791 15.354 47T 3.719 16.0751 66,627 16.5771 85.760 Funds carf•dfon¥ard at 31 Juty 14.375 4.256 79,183
Hertford College Consolidated and Colly Balance Sheets As at 31 Juty 2021 20X 2020 Cdlege Eooo Group roou Grtup FIXED ASSETS T8ible Osset5 Prup8rty inveslm8n oth8r Investrnts 10 14.Y6 7.951 11S705 12.807 14.346 7.951 111705 12,640 28 86,515 12 86.515 Total Flxed Assets IfJ).2S) 13&1J02 1,083 CURREpif ASSETS 21 11 1.097 21 1.971 1.213 11 1.&)3 1.057 Debtors Cash at bank in TrRnd 14 Total Currerrt Assets 2.616 1205 2,571 LIABILITies Cr8Jiits' Amount5 fallir¥J (Je wilhw) [ 15 {1395J 11,2531 {lJ881 1,0311 CURRENT ASSETS 1.474 1.817 TOTAL ASSEfs LESS CURRENT UABILrttES 139A76 101.613 139.819 101,623 CREDITORS: faulng duE aft•r moreth• oneyè¥ 16 120,0(M)I 141J,QDO) 120.0001 ASSEfs BEFORE PENSION ASSET OR UABILrrY 99A76 81.613 99.B19 81,623 D8fined benefft ptrnsion 8chem¢ liobility 11W11 I2,) {1.8011 12.4301 TOTAL NE[ ASSErs 97.675 79.183 96.018 ,193 FUNDS OFTHE COLLEGE Endowmtrntlunds 60.552 Resllthd funds 4256 4,256 Unrestrided Designated funds GefEr4 fitnd5 Revaluaticn re88e Pensic reserve 13,307 3.498 11187 8.114 13,317 3,498 114 21 11.8Ql} {2A30) 11.8011 12A301 97.675 79,183 98.018 79,193 Ttustw. Trusts&
Hertford College Consolidated Statement of Cash Flows For the year ended 31 July 2021 2021 to YJ20 fOOO Net pro¥ld8d by lutstd inl opwlng a(aivikn 13,954 Cash flows Investing actMtI8S "nds, interest and rts Ir(xn wwe5tsrHts Prtteeds from the sale of [pty, Want aid Purchase of prwty. rdanl arKI 1p[rt PeedS from sale of iftv8StrY Purchase of ¢nve8knts Nèt cash provtded by lused Inl In8j attl¥ili 2.460 217 12J211 11.169 34,0101 123.08 2.872 12,7451 16,159 115.0641 1.2 Cash Ilows frorn fIna actMtleÈ on Piivate Pad C&sh inflow5 from n4 rroWIng ReceIptofendorEnt Not cash provided by (e inl acts¥i118S I4} 2D.]0 15041 19,496 4741 Change in cash and cash e4uivalerts rewting pprhyl 11441 13.2061 ash and 5h equivJknts at thebegIln of the Tepryi rfod 1.508 4,715 Ch•nge in cash and Gash equivalents in the reporting pwityj 1144} 13,20n Cash and ca8h ul¥B]erts atthe end Df thfy rewting pwknd 24 1,508 26
H•rtford Colo9• Notes tothe financial 5tatefflgnts Farthe yeareTrJed 31 Juty 2021 Tutt(fEe8. UKErl EU5trthts gn 245 12$ CxlEFCE¥u IWJ19 E4S95k}. 1J71 £uto 13 1270 18 214 525 10 74 EqukydknLknts 461 OThERIKWE % varWduriryth8 thrakondthp5thwl. At 112 siafFw £654k thir duluYJ
Forthe parèndÈd 31 Juty2021 JNJ 4,312 IT44 313 75 512 45 Tr*JYoep4Er4b Flrts 1JJ7 371 TeJ&y Fu 147
Hortford Colleg Notes toth• financlal8faments Forthejwr ded 31 July2fy21 GwwlfslDAwADS i5ctEd funda Restrf¢todlund ¢kn1stolrthitiJ." STFPCO8TS OD ro 5,119 &633 erts1
Trlertfv)rd CD51 Notssto the Iln&n¢tal statern•nts Fortho yeai ¢ndèd 31 July 2021 24 Tubl £70,lol ,WI490.001 £90AW)141th).flJ1 I• TIIGiEFtWAS8Ers Tdal £0 Atstsrtul) 321 A15Lirtdygar 12M6 1.143 11,31 11J19) Atdf 1&7FT 52 1316 At5kntd 12.7EE 12P)7
Ilot8s tCthe finla151ArtS Forthe arendd 31 July 2D21 XX7 321 11.192 Atv4ofye zr.114 AfSLartot[ 12. 1ffi7 I2B IT,319) 12.n7 14232 T(al Trl T25 7rn zo rotyj utEndofJ $1&7 {11M 762 1&6171 11&705 15 31
Nr)ls to thefinarKl81 statemw#S Forth• yearendtd 31 j]y22 UK 242to 707 50.616 707 .616 37# 19.933 12.139 1s.4n la139 15,473 45.315 Col eDL•) ron 11611 122WI Dwfo CdkBw forttÈ> 15 133 Tolalla15 14 DEBTORS 13 16 32
Hèrtford Colo Notes to the firkynclAI *taiwnents Forth& èrthd 31 15 CREDfFOP2: tsringdwm1tsknS•lV £000 121 4DJ CREtsrroRS.. ro
Herthrd Collty Ntstes to the fan1?1 $tslemeDts For the year 31 thJty 2021 r& At31 1.487 V1n P.7931 130) .7T4 174 653 K38a9TraYthl 17 I} (31 1,613 136 135 1291 (311 11021 1214 16 114 651 249 41 19) 4¢ 42 214 E M VwJhED.VrfiknTn 187 %} 15 582 2.7&1 B74 913 2.11 715 319 12) 102 T¢rt4 RÈslnthdFwwJ9.Cr4sp 14x4 16n 1795 Fixed uthjWdEe8Ur 14>6 1141 11.375 iOY9 2.793 23.1$9 14.378 14209 21.162
Hortford Colioge Notes fo Ihgfinandal sxtèm•rts Forthe yovndod 31 JY 2021 At1 2D19 At31ty 614 18 14.WZI 1521 E.kI.VawknTn 614 52 r6) Ells-B4Thrd Wl5fyyFe*thP 45 11321 1XS 670 FeWipFur 163} 514 sca Furé 351 ¢2,151 (161 (w) E. M 214 112) 16 l)trwfurA 16 [24) 1148} 1651 1541 2.10 715 78 6.T49 {Il1841 2n1 1.937 3,49È 12.eoT 12.7651 15,354 967 111841 14A75 14354 112.18 163Ql 14.37 TDt41Fw
Forthè yèar ended 31 July IU21 Endowment Funds (cont5ndI 0n1A41tlO2O 55051 TotslkniurnE4ndsaif Feesandtramsl¢Ys {11 i.r231 TtxalleesarIN5(Ets 1.723 8.174 bakmea13101y2o21 51.51 Erdowrt>ent funds Icontinuedl Funds M(rtiw Fellvwsknp Ftsnd E. M.VsugFon.WIknTrust 1rfth8el Barfng Tra Fund T44 154 {49} 276 {181 (3) 124 iy 123 97 2S 105 k- Illllli R(gerVan NtM)rd&l FL¥bJ E0&Barna Hthy Fd)Mhv? FelIDh1P Fund Kh90Stt Prt DratWsSthdat5hyi Fund Flnd SchBr$hiPmats0F 1316 91 {s)I () 312 (751 {1021 578 74D 614 1ST 1S1 Iw} {261 13) 11554 (1NOI 19 31 16.7 135 Fundjtotsl .¥L.
te8 to th&finala1 sitsrngrrts For tt aTended 31 July 2021 Funds Ethr2C1T grAtod F atd* 37
Not•stO tho ffiTr3ncial statements Fortheyea Èndèd 31 Juty2021 Fur Tot 14216 ?51 4T.139 1.474 62.713 1AY4 LuryLErmfAMrtE 1? T¢ 12mT 12WT 15fftZ 6J15 tda1[rfplXthlv£24l.*I12OÉ202}j4l.
Herttord Coll Notss to the firGi statem FoTthe yearqndpd 31 JL 2D21 £2.13.( £3ml.É4 £7,MlQ8,( rd.W149.Q £91.£10, £11.rA11-E110fAI £12.Wl-£13.0 £15,W1-£16,W) £16XU1-£17.0 I17.l-£I8.0 3.461 3240 7.139 I1.7 24.1 15.451 17X 18, £19ml-£UO fI1,QQ1. 1¥.4 Zl.161 44,6941 341040 £23AQ124.OIY) £24,001-£25.CY 318310 £26mlQ27.ofAI £2B.QQi4Z9.OL¥J 2&342 £30.001£31.0 31m2 31. £32.QO133,t £33011.0 £3401$8[ £36.QO1.F.Q £40011.0 £410111 £50.QOI1. £51.QOIQ51N £s2.Q0I.Q £53.QOI454,( £54.Q0I5( £.oIS6. £56.Q0lF.r £57.ll58,(m t5È.Ml459.( 31475 31214 41.145 515S7 51.811 111493 11Sm6 13 £62.l.£&I,O £W.Ih)1 £64,0 71.no £e4.(W)I£e5,fj 7,IM)1498,WO 99.143 £1W,rt14101.0 £I03,l41(.uLryJ £105,(Kl-£106. £110.% £111.0 103.*7 10&458 11q511 1.391.$46 Trust•••Jwn¥
Herttord CoNe9• Notss to th•ffinwKlal statements Forth• y•ar$nd¢d 31 July 21J21 21 PEN SCHEIIÈS £14t9£17.gtr Odttw2Q21 4% aThJ9. 21_#% f.656 2f4% £57(2QZD-£218kl ¢trlb31 JpTrxry2028
Hertrord Coll¥99 Notss to tho ffiJwKlal statèmonts Forthv year4rd 31 July 2021 TAXATr)N 2D 14492 IQ5TTI [2.8721 E.$47 1132*} 1.144 143 (2.3WI Ir0aalO[o0> 142 1fj391 13351 2020 318 1T
Notesto the firwKlo1 sfatsThenls For lh• arened 31 Juty 8 Fr*v 14 167 GIV1j5WtsI 1fj3 42