Hertford College Annual Report and Financial Statements Year ended 31st July 2022
Hertford College Annual Report and Financial Slatements for the ended 31st July 2022 CONTENTS Governing Body. Officers aThJ Advisers Report of the Governing PAXJY Audib)r s RetK Statement of Aco)unting Polic4es Consolidated Ststsment ol Financk?l Actiwties Consolidated and colle Balance Sheets Ccrftsolidated Statement of Cash Fkjws Notes to the Financial Statements 14 17 23 27
Hertford College Governlng Body, Officers and Advlsers Year ended 31st July 2022 MEMBERS OFTHE GOVERNING BODY The Members of the Goveming B(xly are the Col'S chaiity twstees under charity law. The members of the Governing Body served in office as trustees during the year are detsiled below. Governing Body Fellow Colleg& Iyllce {1) 121 {31 (4) 15) Professor E B81dwin Professor H Bayley Professor R N E Barton Professor C D Brewer Pn)fessor E Chalzis Mr J K Clark Bursar Prof8ssor Z F Cui Professor F Duarte Tutor for Equality & Diversity Dr D Dwan Mr T Fletcher Principal TutOT for GlUate$ Professor B M Fr&lleswg A Galanis Dr K Gr8asley Professor D Greaves Professor D M Hopknn Dr J Kaer Dean of Dree5 Professor D TrQelak Professor A G Lauder Professor P LKJoxygakl$ LkJ Lrner Dr K Lunn-R(K*lrffe Prevent Lead Professor l McBride Professor M Maiden Dr L Malafouris ProfessorA Mikes Professor P J R Millican DrA Nair DrSJNew Dr O J Noble W¢J)Y Dean and SCR Stevrard Professor S Parameswaran Professor P F Roche Invesbnent Bursar
Hertford Collego Goveming Body, Officers and Advlsers Y•ar ended 31stJuly 2022 Governlng Body Fellow Colkge Office 11) (21 {3) 141 (5) Dr F Romei Dr L Slater Ctrc Sloan Porter Felb Professor E Smrth Fell(M Litnrian Dr L Sp8ight Professor G Stsmberg Professor D Thomas Professor C VallarK Seni(x Tutor Dr C Veliz Inderendent pvent n[lor Dr Vyazovskry Professor T Wilson Dean of Degrees SenK)r Felknw Professor M Wooldridge Profe5sorA C S Woollard Ms F Wheare Director of I)evelopr1 Professor R G Zubek During the year the activities of the Goveming were rried out through various committees and offi{rS. Membership of the main committees is shown above for each Fellow. 111 Academic Committee {2) Treasury Committee (3) Development Committee {4) General Purposes Committee (5) Domus Committee COLLEGE SENIOR STAFF The senior staff of the College lo whom swific asperts of day to day management were delegated during the course of the year, and who are regarded as Key Man4ement Personnel. was as follows. College AUntrnt Judi Banks Domestic Bursar Mr jalls Hill Registrar aml Director of Admi&sions Ms Lynn Feathetstone
Hertlord College Govemlng Body, Officer5 and Advlser5 Year ended 31st July 2022 COLLEGEADVISERS Imiestment managers Rathbones Investment ManageTt*nt Ltd 8 Finsbury Circus London EC2M 7AZ Oxford University Endowment Man8gem8nl 27 Park End Street Oxford OX1 1HU Audltor Crowe U.K. LLP 55 Ludgale Hill London EC4M 7JW Bankers Bardays Bank PLC Oxford City Brdnch PO Box 333 Oxford OX13HS Solicltors Knights 1759 Midland H(xJ5e West Way Botley Oxford OX2 OPH United Kingdom Coll8ge address Herttord College. Catte streec Oxfonl OX13BW WebsTrie www.hertford.ox.ac.uk
HERTFORD COLLEGE Report of the Governing Body Year ended 31 Ju 2022 REPORT OF THE GOVERNING BODY The Members of the Goveming B(ly present theirAnnual Report for the year eThJed 31st July 2022 under the Charities Act 2011, together wilh the audited financial 5taternents for the year. REFERENCE AND ADMINISTRATIVE INFORMATION The Principal Fellows and Scholars of Hertford Cc4lege in the University of Oxfor(l. which is known as HertforKI College I'the College"}, is an eleefflosary chartered charitable corporation aggregate. The College was founded by an Act of Parliament in 1874 that InC)0rated Magdalen Hall as Hertford College. An Act of Parfiament of 1816 had gran Magdalen Hall the site and residual wssessions of an eartier. by tren defunct, Hertford College. This had reckived a Royal Charter in 1740. bèing the successor to Hart Hall which daimed IFS origins in a hall of residen establrshed by Elias de Hertford c. 1282. The College registered the Charities Commisyon on 17th August 2010 (registered number 11375271. The names of all Members of the Goveming Body * the date of this report arwj of those in offiGe durfng th& year, together wth details of advisers of tt)e CrAkge. are gtven on pages 2 to 4. STRUCTURE, GOVERNANCE AND MANAGEMENT Govemlng documents The College is gov8rned by its Statutes made under the provision of the Oxford and Cambridge act 1923 and aFproved by Order in Council on 12th October 2011. Goveming Body The Goveming Body is constituted and reguLal in accordantrE wth the College Statutes. the terms of which are enforble ulbmately by the Visitor, who is the Chancellor of The University of OxFord. New members of the Governing Bcmty are elected by the votes of not les8 than tsvo thirds of the total number of Fellows and with the consent ofthe Prinupat. The Governing BLMly determines the (-9}IrJ Strateg direction of the College aThl regulates its administration and the management of its finan and assets. 11 meets regularfy under the chaimianship of the Prinapal and is adwsed by committees. Recruitment and training of Members of the Governing Body Naw Members of the GovemiTrJ Bcmty are inducted into the wthings of Ihe College, incjuding Governing BcKly policy and prcte(lures, by the Principa a1 Bursar. Members of the Governing Body can atteThl tstee infcThatK)n Rxiefing$ to keep them informed of their duties as trustees and about regulatory requirennts. Remuneration of Members of the Governing Body and Sonior College Staff Members of the Goveming Bojy receive refftuneratn or benefits from their trusteeship of the College. Those members Ihat are also employees of the College receNe remuwation for their work as employees of the College. which is 1 in aourdarK With the a(fvice of the College's Remuneration Committee. Where t)ssible and relevant. reMuneon set in line with that awarded to the University's academic staff. All staff are all remunerated at a level which uaL% or exceeds the National LNing Wage. Tre reffluneration of senior college staff is set by the Treasury Committee in line with guidelines sel by the Remuneration Committee by referer lo the annual {anonymised) survey of Cdlege OfficErs and Fellows, Benefits condu¢led by the Unwersity and Conference of Colleges. Oryanisational management The members of the Governing B¢yJy meet at knt six tis a year. The main wort( of developing their policies and monitoring 1r implementalion is (3rried out by vari(ius MMIttee5.
HERTFORD COLLEGE Rgport of the Governing Body Year onded 31 Juty 2022 Acad@mic Committee.. adwses and re[K to Goveming Boty on all matters relating to academic policy and has oversight of the academic reputstion of the College in all its aspects. Treasury Committee: has oversight of Ihe Cdlege's finances and investments and rnports to Goveming Body the 8ffe(veness and prcprtety ofthe Cdlege's ffinanoal manwJement. Development Committee: leads on the developrnent of the strategy for the College's development aetivilies, id8nttfies funding priorities within the framework of the College's strategic plan and liaises with the Treasury Commitkee to oversee the performance and financial rnanagement of the Development Offi(x. General Purposes Commitiee: receives reports from and prowdes suptmyt to the Principal on College business in his role as its presentatiVe within the University and the wider world. The Committee reiVeS rminatiOnS for College Offices and the TTEmbetship of committees. Domus Committee.. has oversht ofthe domestic Ma[went of the College. Remuneration Committee: (x)nsists of four persons not in receipt of remuneration from the Cdlege of which three are not members of Goveming Bcrfly. with Ihe Principal and the Bursar in attendani?. The Committee rnakes recommendations lo the Goveming Bcty on Fellows. allowances and College Officers, stipends. The day-to-day running of the College is delegated to the Bursar. sup[ed by the Domestic Bursar. The Bursar attends all meetings of the Goveming Body's Committ88s, eXp1 Academic Committee. Group structure and relalionship5 The College administers a number of special tnJst& as detailgj in Notes 17 arKI 18 to Ihe financial statements. The College has two wh{Alyvrned non-d)arilae subsidrarEs. Hertford Cole Programmes started trading on 1s1 August 2010. and tts activities primarity comprise (y)nferences and English Language programrrw use the College's facilities when not in use by the Cdlege. Annual profits are donated Éo the College under the GIftA Scheme. Herttord College Design arKJ Bund started trling on 13th March 2020. and its activities comprise designing, (¥Jmmissioning and constructing new estates facilities for the College. Annual profits are donaled to the College under the GiftAd Scheme. The College is part of the llegIate Univetsity of Oxford. Material interdependencies between the Univergty and th8 College arise as a consequence of Ihis relatK)nship. OBJECTIVES AND AcnvmES Charftable Objects and Alms The College's Ck)jects are to advance wljic leaming by the provision of 8 cOle in the University of Oxford. The Governing Body has considered the Charity Commission's guKJaft on wblic benefft and, in keeping wtlh its obJ"ects. the College's airrts foT the public benefit are to.. Promote exllenCe in urMleTgraduale education. induding pastoTrl and academic sUppt. Make that ex(*llence accessible to all who (2n benefit from it gardleSS of their social or economic background. Provide pastoral and ademiC SUPFth to graduate sbjdents, and Promote excdlènce in researth on the part of its Fellows arKI Siipendiary LecbJrers. The aims of the College's subsidiaries are to hdp to fvnd, otheThYi5e supporL the achievement of the College's aims as a0Ve.
HERTFORD COLLEGE Report of the Governing Body Year end8d 31 July 2022 The College remains committed to the aim of providing public benefit in 8CCY)fKlanc£ wrth its knjnding principles. The College's Public Benefit State[rt is published on the College website. The College advances publi¢ leamirrfJ by providing higher education to undergraduate and postgraduate students within Oxford Universrty and by SUPFrf)itng the pursuit of publidy disseminated rEsearch. Chjring the year, the College had apFKoximatdy 452 umlergraduates, 347 postgraduates, and 38 fellows who hav6 contractual obligations to teach as well as research. The College provides publ benefit by offering higher education to ils undergraduates. much of it via the tutorial system which provides the opportunity tri meet with a tutor on a weekjy basis during term time. In addition, the College prowdes classes, seminars and other forms of teaching as appropriate. in conjun(on with the UniversiS departments. To SUPFK)rt student learning. the College also provides the use of the College's library and accommodation and actwely prorwtes the wider (Jjltural aThJ soaal educats.c of its students through the provision of t))mputer. sports. careers advi and olher knlities. Graduates at the College fomi an imFortanl part of the academ community. While they are taught at their University F&ulty. every graduate student is assigned a Couege Graduate AdSer who provides pastoral supporL The College also adv8fts research in a range of dis(xplin8s by employing academics who have a contractual obligation lo undertake pu1lShl research, and promding them a supportive academic atmosphere, inciuding the ProwOn of research grants. library and computer facilities, office accommodation and meals. Research is disseminated through published papers, books. websites and lectures. The College SUPFxKts the research of academics who, at the beginning ol their careers. have already sfrKAvn outstanding promise in their thos8n field of research by providing a fully fvnded Junior Research or Career Development Fellowship a Fwiod of up to three year5 to enable holders to ontrate on their topic of researth. The College offers undergraduate pla3 on Ihe bass of academ meriL The College alms lo attract th8 students who are most atde lo benefft from an Oxford educatson regardless of sex. gender. income. ethnic origin, religion, pwous gJucatf(N)al optthinty, or disability. and athely works lo recruit students from non-traditional backgrounds by encouragiThJ applicatrons from under-repre5enled group8. Finanaal support is awaille to urKiergraduates from the UK (and the EU in some cir¢umstatwI to assist them wilh the costs of luitson fees and living costs whilst at the College. In addib'on to the student loans provided by the Student Loans Company that are available to undergraduates from within the EU. oth8r firtancial support from the UnIV1ty and the CcAlege is available to undergraduates who are from households where ino)me is tdow a rtain level. A range of financial support is a0 available to Graduate students. In 2021122 a totsl of £815k was alkn(2ted to student support. an increase of 200/D on the preVKJs year. Oxford Bursartes are available to UK uler9aduates fmm househotds assessed as having a sufficiently low income. Ill the 2021122 year. 80 of the College's un(krgraduales received 8n Oxford Bursary funded joinly by Ihe University and the Coiiege. with a total value of £336k. In 2011112 the College intrcrfJu(Ed a means-tesled Hertford Undergraduate Bursary of £1.000. for UK undergraduatss. This bursary was extended to EU students in 2012113. In 2021r22. 132 Hertrd students were awarded the Hertford Undergrlu81e Bursary. Graduate fundlng is aso provtded in the form of scholarships armj grants. Tr Cailege awarded a total of £259k in 2021122 for this purp)se. The College also offers Student Support in the forni of grants to both undergraduate and graduate Students who experience unexpected finarrial hardship. academ related travel, or as rent subsidies. In 2021122 the Coliege distributed £183k to supwrt students in this way.
HERTFORD COLLEGE Report of thè Governing Body Year ended 31 Juty 2022 ACADEMIC REVIEW Whilst no new tutorial fellows joined Ihe college in 2021-22. we wethrned a Depathiental Lecknrer, who is providing c(Alege teaching and pastoral cover as replaceffnl for one of our hjtorial fellows, who was gtxnted a prestigious research grant spanning a four-year perTrod. As highlighted in previous reviews. a signffj(3nt amount of teaching within the College is supplied by skn- pendiary lecturers. who do not hold a felh)wship or a joint appointment wrth the University. We welcomed eighteen rW lecturers arKJ teaehing assistanis to the college in 2021-22. We continued our efforts to in- tegrat8 and suptyNt this cohort of new members of teaching staff.. we ran our comprehensive induction prograrnme for new fellows and lectrjrers over two days in September and October. and the lertnly tutors, meetings covered a broad range of topics indudirg in-pwsor) teaching aTrangements as we moved out of pandetniG arrangements. preparation f(K Onli undergrdduate admissKJns interwews. cx)Ilege welfare prowsion and suppoit and the college's academic ac(x)unlalxlty process. Following the UCAS Confirmation cycSe in August 2021. we welcomed a slighty smaller (in comparison to the largest ever cohort in 2020) undeTgrdduate fresher cohort of 123, in October 2021. 92Yo of the group are UK students, 0fwhh 790h are from state sch(S and 51 % from disadvantaged backgrounds (as d8temiined by soatRconomic ar)dlor educalional infornalion>. ITh the 2021-22 a(xdefflic year. we saw a reintr(xJuction of pre-pandemic teaching aangern8nts. with most teaching taking pl in person. but some hytxid (K Onli arrangements remaining. or being put, i pla where required. We cfjntinued to offer measures that were implerwiled duriftg the pandemK, in- cluding the provision of tablets to undergraduate freshers required. The College's Porter Fellow in ac- ademic skills. Dr Catherine Sloan. resumed face to face provision of the well4slablished prcgramm8 of workshops and one-to-one meetings, whilst continuing to p)Vle online res(wrces and materials. The College's librarn Ajice Roques also continued to offer a wealth of support to the und¥graduate stu- dents. including assisting in locating online resources. and provKling click and o)IlecL andlor postal ser- Exams and assessments were undertaken in a combination of online and in•person formats. Whilst the Norringlon Table, which cK>mpares undergrdduate Finals results by (x)llege. has not yet been published, within college, 56 students retained their a(emic schcAarship and 51 sbjdents were promoted to a schdarship over the course of the year fOll(wTrJ first class Ferbrmance in unrversity examinations or college collections. Prizes were awarded to 41 students deliveriry outstanding perfornian in final ex- ams. Seven students won prizes frum the University's faujlties and departments against stn7 competition from oth8r colleges. We have nb"nUed to njn an extensive OLtrath prDJramme. engaging primarily wlth s(ools and stu- dents in our link regions of Canvjen. E55ex {indudirNJ Southend-on-sea and Thurrockl. Medway and Pe- terl)orough. Outreach 8ctivities have largely retumed to Inr fomiats this year. with onllr)e activities complementing the in-Frs0n provision. Now in its fourth yaar. our Unsung HercEs of Soence Mdeo competilion continLS to attract great inter- est. This year we retEived a record 74 entries and shorlisted 22, which were watched on YouTube morE than 12.000 times. The cy)mpetition prizes were again provkyed by the Royal Institution. whh we hope to work with on the competition again in the fvture. Once again, we ran our Swrftstream programme XIb.formerS fr(yn Me(hYay. The programme sisted of a series of webinars and interactive online workshops. and this year culminated in a residenli81 programme. For the second year running. we delivered the Next Steps Essex pr(KJramme. a series of information. advi, and guan webinars organised iointy with Etnmanuel College, Cambridge. Our STEM Outreach Officer also instigated C(Kle Club. a pilot programrne of weekly workshops aimed at giving students from some of Oxford's most disadvantaged areas the skills they need to enter digital - reers. We continued our p8rtiopabon in Teacher Forums organised wtth our Oxtord for East England consortium partners, and also in Springix)ard. another consortium activity which engaged graduate stu- dents to create an online repository of stretching super-eurricul8r videos. The University open days reverted to tsking FAace in person in the 2021-22 deMiC year. With the sup- port of our 23 undergraduate ambassadors. the (allege welcomed over 1.5(Kl visilor5 across the tsvo
HERTFORD COLLEGE Report of the Governing Body Year ended 31 July 2022 days in JunelJuly. The online material and content devebped in 2020 and 2021 also remained available on our website. for those unable to conE to Oxford. Four Tanner Prizes were awanjed to the most active undergraduate student ambassadors in recognilion of their hard work and djICation thrK)ughout the year. The NK)St powerful demonstratTr of our access w(xk is admissi)ns. The College received 965 applitx- lions, of which 876 were direct apKli(xtions to Hertford in 0[ober 2021. While this is a 2.7% decrease on 2020. Hertford remained in the top 10 most FK)pular llegeS for apF4i(2nts. We once again parbopaled in the University's 'Op[UnIty Oxfollj, scheme for sludenL8 from disadvan- tAged backgrounds. making four offers under the scherne. We continued to provide offer-holder supporL including enhanc£d communications. dectronic reading lists, and llege tours at key rrK)ments during the pericJ between offer-making in January 2022 and the students, arrtval in Oclobei 2022. Unfortu- nalely. the planned Fresher Wel(xKne Day had to be canled due to the unantiapated rail strikes. FINANCIAL REVIEW The Financial Ststements for 2021122 folknw the requirements of FRS102. Income during the year was improved thrcwh the retum of reslen"al In0) to pre-pandemic levels {+ 56°kl, and higher investrnent income {+ 68%). Th8re was a retum of some trading irme, allhough at only £385k this represents onty around 13% of Pre-pandeM highs. ExcludiThJ the wopty revaluation benefit from 20121. tot income wa$ som 37% hdher. Broader ecx)nomic factors started to drive substantial increases in non-staff operating expenses. particularfy in some categories. Utility costs for example. were more 1han tsvice the level in the proding year. a rise of some £300k. The single largest factor is the non-cash transaton representing movements in perKsion liabilities. and record in the PerEh)n Reserve. At an increase of provisions cir(x £1.036m, this wds an adverse swiry of£1.67m year on year. and ac(L)unts for approximately 213 of the expenditure increase for charitsbie activities. Traling expenditure increased. with the retum of operations in that area, arKI investment managefflent costs reflect the full year costs of servicing the new bond tsken OLrt during the previous finanrial year. Exduding the Fen5 related adjustment. core operating expendibjre increased by arrKI 11 %. Excluding the mvemnt in provisions. and adjustiThJ for the Total Return income FX)licy applicable to Endowment funds, the operatng deficit for the year was £791k, reflected the continued absence of the College's usual Conferen income. Pre-pandemi¢. the latter generated a net surplus of around £1.5m annually. Net operating cash llow was approximately neutral {£12k surplus). The College's investment holdings Saw a dedine in value of around £3.2m, rnpared to the gain of £13.2m in the pw year. Values have been recx)vering Sin the year end. Rèserves policy The CcAlege's reserves policy is to maintain a minimum of three ftN)nths' free reserves to enable il to meet its short-term ff nancial oblMJations in the event of an unexpected revenue 5h(xttall. to allow the College to be managed efficienuy and to provide a lffer that would ensure uninterrupted seNices. The College s free reserves at the year-eTrJ amounted to £10.460m. representing retained UnStCted income reserves. exduding an amount of £13.599m for bwk value ot frAed assets the reserve against tuture Penwon Deficits required by the implementatron of FRS102 {£2.837m}. The governiThJ boty have reviewed the tree reserves and ate satisfied that the level of free reseNes. the current cash llow projections. and the availability of extem81 finalg facalibes would provide an adequate safety net in the event of adverse operating coThYitions. Total funds of the College and its Sulary at the year-ond amounted lo £92.978m12021.. £97.6ml. This includes endowment capital of £68.3m. desunated funds of£1.124m and unspent restricted income funds totslling £3.439m. The Fellows have asse&%ed the College's abilwiy to continue as a sY)ing concern. The Feltows have
HERTFORD COLLEGE Report of the Govèrnlng Body Yearended 31 Juty 2022 nsidered several factors when foming their wndusion as to whether the use of the going conrn basis is appropriate when preparing these financial stateTrEnts, induding a review of updated forecasts. ar)d a ¢XTrnsiderab'on of key risks, indLyJing any continuirvJ impacts of COVKJ 19. The latter are now mosuy felt in relation lo depres1 trading income. whth has been sk)w to ¢Over. The College has a large endowment. and financial performance COntinS to be rnitored regulady. The Fellows have scrutinised the key assumptions thin the finano?al budget and forecast. and are satisfied that the current level of free reserves, available investrnent and cash balan are adequate to meet the College's obligations as they fall due. Having regards to the above, the Fellows are satisfied that there are no material unrtaIntieS around the decision to adopt the g)ing concem basis of acntIng in preparing these financial statements. Risk managémont The Cdlege has on-wing processes which OFerated throughout the finan81 year for identifying, evaluating arKI managirvJ the principal risks and uncertainties faced by the College and its subsidiary in undertaking their activities. The College idenlifies and regulaTly vIewS the risks il faces, the wtential impact of each risk, the likelihtXKJ of recurrencE. Ihe severity of impacL arKJ the steps taken to mitigate each particular risk. Principal risks are assessed by the Treasury Committee. and more detaned risks by other MMittee$ {e.g. Health and Safety Committee), Cdlege OffK*rs and Heads of DepartmenL Training courses and other forms of career devdopment are mwle available to Trustees and MerntS of staff to enhance their skills in risk-related areas. The Goveming Body. w1 have ulb'mate responsiblify for managing any risks faced by the College, have reviewed the processes in FAace for managing risk and the principal identifEd risks to which the College and its subsidiary are exposed and have crluded that robust systems are in place to manage these risks. The principal risks and UnrtaIntieS faced by the College and its subsidiaries include: Govemance risks- e.g. inappropriate organk%ah'oDal stnjcture. drfficulties recruitirwJ tsustees with relevant skills, conflict of interest Operational risks- e.g. servits quality and developmenL wntract priurwJ. empSoyment issues. health and safety issues" fraud and rnisappropriation. Financia risks- e.g. accuracy and timelirw of financial InfOrtion. adequacy of reserves and Ixsh flow. diversity of income sources. investment management; External risks- e.g. per(wtion and adverse wblrity. demographic changes. governm8nt policy., and Cornplian wth law arKI regulation - e.g. breth of trust law. employment law. and regulative requirements of particular activities such as fvnd-ratsing and inforrnation setxjrity. Strategies for managir& the risks identified by the College as described above indLMIe". Operating structured and fornalised prc¢etsts for lJ)e identification, assessmenL and manag8ment of the reSFonse to risk. Establishing the appropriate (x)mmtttees lo ensure over5wJht of all key actmties. with responsibility for fomiulating recomTnendations to Governing Body: Prowding appropriale training to all members of staff. and at the induction of new Fellows., Ensuring accountability of College Officers to the appropriate committee. arKI for the commtttees in tum to be accountable to the (knirMJ B(Mty. DevelOng and implemenlyng key Folicies across the main areas of activity ofthe College. 10
HERTFORD COLLEGE Report of the Governing Body Year ended 31 Jujy 2022 induding, for example, admissions wlicy. heatth & safety policy. and infr)rmation security poltcy" Ensuring the appropriate inSurare policies are in place. and revtew&J regularfy. Fundralslng 2021-22 saw a decrease in Herttord's philant11c income. £797.186 in received donab'ons. Looknng ahead. we have c.£25.222.CKJO in pged support trom major grfts, mainly c£)mprising a rngle pledge of £25m. to be fulfilled over the rxt three to five years. Addlnally. we expect to rec8ive c.£250k per annurn in lower-level regular gifts over a similar timescale. Over 1,000 dormys (1,012} male a gift to Hertftird this year for the first tsme. This increase is largely due to holding tx)th a telethon and a GiviNJ Day in a single year, both of which targeted fit time donors. This year saw our Iow8St *acy income forfive years. vth just under £75,OIXI received in legacies from four alumni. Donations conb'nued lo be directed to a range of pr(iects, with the Library redevelopment. student support and the unrestricted fund attractirvJ the most th>nations. For the most part, we were able to relum tr) a full prcgramme of invperson events. Hundreds of alumni reknmed lo Hertford for gaudies and other evenls. and our donor Stewardship events were also well attended. The Director of Devdopmenl travell8d to Ihe East and West Coasts of the US. ac(L)mpanied by the Fellow Librarian and Pro Principal. This was an opportunity to reostablish Iwtscl with alumni in the region after a perwjd of limited or no intemational travel. Our tundraising rnpaign for the extetKled and ref15hed library, which has a minimum target of £8m, was publicly announced at the annual John Donne Lecture and Dinner in April 2022. Su[ting in several donations. This cafflpaign will be the main focu5 of our fundraBiTrJ in the rA)ming months and years, alttrKwgh not at the expense of existing actsmty. We held our first Giwng Day in June this year. 36 hours of Conntrated fvndraising activity. primarily through digital means. Seven targeted emails were sent to alumni during the period. erragIng donations to student suptK)rt. college life and the library campaign. At the same lime. we held sever community events in wllege aimed al students, staff. and Fellows. Social media engagement remained strong. and our existiro publications (the MagaarE and Donor Retx)rt) were supplemenl8d by the Hertford BwksEff [St, vthich featured interviews belween Professor Emma Smith and stx alumni aut. The Bndge BkyJ proved to be a popular way for alumni to share their news and achievements. HertfMI College is committed to best pracb.ce in relatK)n to all fundraisiw activltles. The in-house Development team CCK)rdinate fundraising actrvities and are subie¢t to the scrutiny of the Development Committee and college (vernIng Body. on which the Development Director sits. Hertford is registered with the Fundraising regulator and has protcths and procedLwes in pla1 to ensure that fvndraising is open. honest and respectftjl, and adheres to al and industy-spe(ific guidelines. Hertrord does not engage any profession81 third parties to carry out fijndraising acl]vities on its behalf. Investment policy, objèctives and perf0mnCe The College's Statement of Investment Principles sets out the followrvJ aims: Generate income lo support the &ege.$ charitable edu(2tional aims. Improve the educxtional experien of cYjent and firture generations of students and to pursue ex(Eller in scholarship by means of teaching and search and the promsion of Ihe (xjltural and sc181 context whith sUp[w this. and Produce the optimJ sustainable retum given the LX)Ilege's Icfyv risk tolen and to preserve the value of investments against the threat of inflati)n over the k)ng term. The investment strategy and perfOnn is monitored by the InvestrnentAthisory Committee which in tum rewrts to the College's Treasury Committee. At the year end. the value of the College's investments was £111.4m (2021 £115.7m). of whth £62.465m represents endowed or restncted )lJnds. Tr lot81 11
HERTFORD COLLEGE Report of the Governing Body Yearended 31 July2022 invesknent income was c. 3.7Q/ty gross (average value). The College's investment objectives are to balance current and fiJtuTe beneficiary r}eI5 by.. maintaining (at least) the value of the investments in real terrrts- producing a consistent and sustainable arrInt to suptth expenditure: and delivering these objectives within acceptatAe levels of risk. To meet these objectives the Cdlege's investrwts of its penanent enth)wed funds a managed Dn a total rEtum basis. maintaining diversification across a range of asset dasses in order to produce a apPp[late balance between risk and rettjm. In line with this approach. the College statutes allow the College to invest pernianent endthvments to maximise the lated totsl return and to make available for expenditure eath year an appropnate pro[M)n of the unapplied total retum. The value date for establishing the initial values of the Investment Fund and the Unapplied Total Return was 31st July 2009. The investment strategy. lGY and Performan is monit by the Investment Committee. At the year end. the College's long temi investments {perrrwnent en(knvment onty), (Yjmbining securities and propety investments. totalled £68.3m. Direct ino)nE eamed on investments amounted to £2.39m, and net value losses were £1.rn. Under the total retum ac(x)unting basis, it is the Goveming B(Mtys policy lo extract as income 4.25¥0 of the value of the relevant inveslrnents. However, to smooth aThJ mclerale. the amounts withdrawn aro ¢al¢ulaled on the average of the year end values in each of the last five years. Due to fluctuab.ng Invester1t values over the previous five years, the efftIVe amounts withdrawn are (TrendY may vary from the nominal rdte. For the year ending July 31S1 2022, an amcFunt of £2.8m was withdrawn as income. The College also operates a pcAicy of apFAyiw an arTKXJllt of the UTR to the Investment Fund to preserve its real value. This is set based on the fTK)5t recent RPI al the balance sheet date. For the year ending Juty 31st 2022, £6.3rn was transferred. represenkn.ng 12.3% of the Investrnent Fund value. The Governing Body will keep the level of inco wtthdrawn under review io balance Ihe needs and interests of current and future benefi(aaries of the Cdw's aviks. The Goveming Ix)dy is satisfied that Ihe overall terbrmance of investment activities for the year has mel the objectives sel. 12
HERTFORD COLLEGE Report of the Govemlng Body Year ended 31 July 2022 FUTURE PLANS The College has agreed a 10 year plan to devek)p its buildings and facilities {°the Estates Slrategy.). This wll enc4)mpa&8 signiff(ant refurbishment works {e.g. upgrading stLJdent accommodation), the expansion of esting facililies (e.g. a new Library and improved study space). and provision of new facilities (e.g. addilional graduate aoxjmmodatn). The anticipated eXpeIlture over that horizon is around £75m, to be found from a combination of reserves, fundraising. bond capital. and cther finan affdngernents. A number of the projects under this strategy have LEen completed. and more are undenvay. The Library project has secured planning approval, and is due to start build woF in the summer of 2023. An application in resFeCt of new graduate ac(x)mrFKxlation is due to be submitted in the Autumn of 2022. With the expedation of major capital expenditure in Ihe next 5 years. during a period of challenging economic pressures. it 11 be more important than ever to ensure that operational expenditure is optimised. The college op8rations bLKlget all0¢anS will be revIevA to ensure that costs are under ntrol and that the projects are affordable. STATEMENT OF AccouMllNG AND REPORTING RESPONSIBILMES The Governing BCMYY ts responsib for weparing fhe ReFJt of the Goveming Body and the financial stalements in accordan with 2pplifxble arKI regulations. Charity law requires the Goveming Body to prepare financ4al statemeNts for each financ4al year. Under that law the Governing Bcdy have prepared the firwIc[ statements in accordance United Kingdom GenerallyAccepled Acunting Practice (United KirKJdom Accounting Standawds and applicable law), induding Financial Reporting Standard 102: The Financial RerMxb"r¥J Standard Applicable in the UK and Republic of Ireland (FRS 102). Under charity law the Governing Body must not approve the finarrial Statents unless they are satisfied Ihat they give a true and fair Vie•V of the state of affairs of the Colege and of its net income or oxpendilure for that perK)d. In preparing these financial statements. the Governing Body is required to: select th8 most Suitab aCCnting 1cleS and then apply them consistenUy', make Judgnnts and aLxxJunkn"ng 8stsmates that are wsOnae and prudent., state whether applicatAe accounting stsndards. indudirg FRS 102, have been followed, subject to any matenal departsJres disclosed and explained in the financial statements. state whether a Statement of Recommended Prac (SORP} apFlies and has been followed, 5ubj.ect to any material depareS which are explained in the financ1 statements" prepare the financial statements on the Ing o)tKxn basis unless it is inappropriate to presume that the College YAII cofttinue to OFErate. The (>)verning Body is responSie for keeping proper aCcnting rrdS that a sufficient to show and explain the College's transactions aTrJ disclose viith reasonable accuracy al any titne the finanryal position of the College and enable them to ensure that the financial statements compfy with the Charities Act 2011. They are also responsible for safeguarding the assets of the College and ensuring their proper application under charity law aml hen fortsknng reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Governir#J Boty on the 2W of November 2022 aThJ signed on its behalf by. Clark Bursar 13
HERTFORD COLLEGE Report of thg Auditors Year gndod 31 July 2022 Independent AudltoVs Report to the Tntstees of Hertford College Opinion We have allted the financial statements of Hertford College the year ended 31 July 2022 which com- prise the Consolidated Statement of Financial Activities. Consolidated and College Balan Sheets, CoTh- solidated Statement of Cash Flows and notes to the financial statements. induding significant accounting policie5. The financial reportiro frawn8WCrt that has been applied in t1r preparation 15 applicable law and United lfjngdom Accounting Standards. induding Financial Rewrting Standard 102 The Financial Report- ing Standard applicable in the UK and Republicof Ireland (unit lQngdom GenerallyAccepted A(xounting Practice). In our opinion the ffinancial statements: give a and fair Mew of the state of group's and the parent chartty's affairs as at 31 July 2022 and Df the grwJ'$ income arKI rpts of endowments and experKliture. for the year then ended-, have twn prLiperfy prepared in aance with United King(k)m Generalty Accepted Accwnting Practice; and have teen pparj in acConjan with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit in acTrydan with InterrtiOnal Standards on Audibng (UK) IISAS (UK)) and applicable law. Our responsibilit.es under those standards are ftJrther described in the Auditor's resFX)nsi- bilities for the audit of the ffinancial statements section of our report. We are independent of the group in accor(lance with the ethical requirements that are relevant to our audtt of Ihe financi81 statew)ts in the UK, induding the FRC'S Ethic21 Standard, and we have fulfilled our other ethical restsibIlitieS in accoryl- an with these requirements. We believe that the aL7t eviden we have rtjtained is sufficient and ap- propriate to provide a basis for our opinK)n. Concluslons Tolating to going concern In auditing the financial statements. we have Condjed that Ihe tThJstee's use of the going concm basis of accounting in the preparation of the finanoal statements is appropriate. Based on the work we have perlomied. we have not 1dentrfd any material unrtaIntieS relating iu events or conditions that, individualty or collectivety. may cast signrficanl doubt on the charity or the group's ability to continue as a going crCern for a p1(j of at least iwelve r(nthS from when the financial statemnts are authorised for issue. Our responsibileS and the responsibilities of the truslees Yth respect to going cOrM are described in the relevant sections of this reporL Oth8r information The trustees are responsible the other inf0mtion Wntainl wilhin the annual report. The other infor- mation comprises the infomation induded in the annual reFKKt. other than the finar)cial statements and our auditor's report thereon. Our opinion the finana81 statements does Th)t cover the other infomiation and. except to the extent otheTwse explioty stated in our report we do not express any forni of assurance cOrUsion thereon. Our responsibility is to read the other infomiatK)n aTKI. in doing 50. consider whelher the other irrfcffmation is materially ino)nsistent with the financial staternerts or our knovAedge (A)18ined in the audit or othemise appears to be materially misstated. If we idfjnbfy such material inconsistenc*s or apparent material mis- statements, we are required tr) determine whether1his gwes rise to a material misstatement in the finawial 5talemenls themsefves. If, based on the work we have perfoTrrEd. we c4)nciude that Ihere is a material misstatement of this other information, we are required lo report thatfacL We have nolhiro to report in this regard. 14
HERTFORD COLLEGE Report of the Auditors Year ended 31 Juty 2022 Matters on whlch we are required to report by exception We have rK)thing to report in respect of follong matters in relation to which the Charities (Afxtjunts and Reports) Regulations 2008 r&]uires us to report to you if. in our opinion.. the information given in the finartcial slatements is inconsistent in any material respect the lThstees' report., or sufficient and proper aLrountsrKJ rordS have not treen kept by the parent charity,. or the financia statements are not in agreement with the accounbThJ records and retums.. or we have not received all the infonab.on and eWan"ons we require for our audit Responslbilitte3 of trustses As explained more fully in the trjstees, SpOnsibl]itieS ststemen( the trusloes are responsible for the preparation of the financiai statements and for being satisfied that they grve a true and fair view, and for such internal c#Jnlrol as the trustees determine is nssary to enable the preparation of financial state- ments that are free from material rnisstalernenl %thether due to fraud or errDr. In preparing the financial statements. the trustees are resnsIble for assessing the gr(p and the parent Charity's ability to wntinue as a going nCem, disdosing, a5 aFWicable, matters related lo going concem and using the going cOnM basis of aixx)unting unless the tnjstees eIr intend to liquidate the charity or lo cease operations, or have no realistic altematwe EwJt to do so. Auditorfs responsibilitles for the audit of the financial Statements We have been appointed as auditor under section ofthe chantsAct 2011. and report in accordance with the Acts and relevant regationS made or haviro effect thereunder. Our obJ"ectives are to (4)tain reasonable assur8rte abcmjt whthr the financial statements as a whole are free from material misstatement. whether due tofraLKI orerror. a1 to issue an auditor's report that indudes our opinion. Reasonable asSura[e is a hh level of assurance, Lmrt is not a guarantee that an audit con- ducted In accordance with ISAS (UK) will aNvays detect a material misstatement when it exists. Misstate- ments can arise from fraud or and are conshyered material it, indTvidu8lly in the aggwale, they rA)uld reasonably be expected to in1luen the ecorx)mic decisions of urs taken on the basis of these financial statements. Delails of the extent lo which the audit was cDnsidered capable of detecting irrEgularities. inctuding fraud and non-complian with laws and regulations are set out tlOw. Afijrther description of our responsknilities for the audit of the fjnanoal statements is located on the Finan- al Reporting Council's website at: vhwN.frc. .uklauditorsres our auditor's report. nsibililies. This description forms part of Extent to which the audit was consldered capable of detecling Irregularftl¢s, includlng fraud Irregularities, induding fraud. are instances of rKjn-CDFnlan laws and regulations. We identified and assessed the risks of material misstatement of the finawal statements from irregularities, whether due lo fraud or em)r. and discussed Ihese betsIn our audit team. We then designed and perfomed audtt procedures responswe to those risks. in(*Jding obtaining alIt evi¢knce sufficient and appropriate to pro- de a basis for our opinion. We obtained an understanding of the legal and regulat(Ky framewor wrthin which the parent charity and group oTateS. focusing on those laws and regulations that have a direct effect on the detemiination of material amounts arvj disclosures in the firtanaal ststements. The laws and regulations we considered in this context were taxation legislation, the Charttips Act 2011 together with the Chartbes SORP (FRS 102). We assessed the required compliance %Mth these laws arml regulatrons as part of our audit ProdureS o the related financial statement ttems. In addition. we considered provisions of other laws and regulations that th) not have a direct effect on the financial statements It Complian witt) which might be fundamental to the parent charity's and the group's ability to oFate or to avoid a material penalty. We also nsidered the oPnIb"e$ and Inn- tives that may exist within the parent charity a1 the group for fraud. The other laws and regulations we 15
HERTFORD COLLEGE Report of the Audliors Year ended 31 July 2022 considered in this o)rrtext for the group were neral Data Protecbon Regulatiorts arKI Health and Safety regulats'ons. Audibng standards limit the required audit w(Kedures to identify tK$n-compliar with these laws and reg- ulations to enquiry of Ihe Trustees and other managBTnent aTKI inspection of regulatory and legal corre- spondence, if any. We identified the greatest risk of material impact on the financial statements from iffegularities. induding fraud, to be within the recognition of income. and the ovenide of controls by management. Our audit prc cedures to respond to risk of income recognition induded selectiTig a sample of income duriThJ the year. agreeing back to the relevant documentation and ensuring it has Ixen recognised coffecuy. Our audit procedures to respond to the risk of management override included enquiries of manageThnt about their own entifiCAtion and assessment of the risks of iTregularities, sarnple testing on the posting of journals. reviewing a(unting estimates for biases. reviewiThJ regulatory (x)rreswndence with the Charity Commis- sion and reading minutes of meeb.ngs of those tharged with governance. (Ming to the inherent limitations of an audiL there is an unavoidable risk that we may not have detected some material misstatements in thg financial ststem8nts, even though we have propety planned and per- fonned our audit in accordance with audibng stsndards. Forexample. the fumher rernved non-complian with laws and regulations lirregularitie5) is from the events and transactions rellBcted in the financ4al state- ments, the less likely the inherenlty limited proureS required by audibng standards would identfy it. In addition, as with any audiL there remain1 a higher risk of non-detection of iThegu1arit8, as these may involve collusion, forgery. intentional omissK)ns. misrepresentath)ns. or the override of internal (x)ntrols. We are not responsible for preventing non-complkgrKe and cannot be eX[ted to detect nOn-MplIan with all laws and regLationS. Use of our report This report is made solely to the charity's trustees. as a body, in a(XxWdan with Part 4 of the Charfties (a)Unts and Reports) Regulations 2008. Our audit wor1( has bean undertaken so that we might stste to the charity's tnjstees Ihose matters we are required to state to them in an audilcir's rept and for no other purpose. To the fvllest extent pennilted by law. we (b rKJI apt or assume responsibility lo anyone other than the charity and the char[S trustees as a trx)ty. for our audit work, for this rep or for the opinions we have fomied. LL Crowe U.K. LLP Statutory Auditor London Date.. 30th N0vernr 2022 Crowe U.K. LLP is digible for app)intrnent as auditorof the chanty by virbje of lis eligibiffity for aFpointment as auditor of a company under section 1212 of the Companies Act 20Cfj. 16
HERTFORD COLLEGE Statement of Accounting Policles Year ended 31 July 2022 statement of Accounting Policles 1. Scope of the financial statements The financi statements present the Consc4idated Statement of Finanual Activtti8s (SOFA). the Consdidated and College Balan¢e Sheets and the co[dated Cash Flow Statement of Cash Flows for the College and its wholly oW[d subsidiaries Hertford Prwammes Limited and Hertford College Design and Bull d Limited. The subsidiaries have been consolidated from the date of their formation, being the date from which the College has exeSed control through votiro rights in the subsidiaries. No separate SOFA has been presented for the College alone a5 CUrrenY permitted by the Charty Commission on a (XJnIOnary basis for th8 filing of consolidated financial statsments. Basls of accountlng The Cdlege's individual and consolidated finanaal ststements have been prepared in accordan with United Kngdom Ac(thntsng Standards, in particular'FRS 102: The Financial Reptsrting StsrKlard appIlble in the UK and Republic of IrelaThJ' {FRS 102). The College is a public benefit entity the purFose5 of FRS 102 and a registered charity. The CcAlege has therefore also prepared its indNiduat arml (rjnsotidaled financial statement5 in accordan wth 'The Statement of Reuimmendwj Prdctice applicable to charibes prepariThJ thelr financial ststements in accordan wth FRS 102. (rhe charib.es SORP (FRS 102)). Having reviewed the frjnding facililies available to the Cdlege together with the expected ongoing demand lor plaS and the Cdlege's future proprted cash flows, the Gov8ming Body have a reasonable ex¢tal)n that the College has adequate resrxjrces to continue its adiwties for the foreseeable future and c¥xsi(kr that there were no malerial unrtaIne5 over the Q)Ilege's financial viability. Accordingly. they also continue to ath)pt Ihe going wncern basis in preparing the financial statements as oulined in the Statement ofA(toJnting arKI ReportiThJ Resporksibilities on page 12 and to adopt the historical $t basis, eXpt for ts measurement of investments and certain financial assets and liabilibes at lair value with movements in value reported within the Statement of Finanaal ActNities (SOFA). The prinupal accounting policies adopted are set out bek)w and have been applied consistentiy throughout the year. The accounts {fin8n¢ial ststernents) have been prepared to grve a 'true and fair, vrew and have departed from the Chariti65 (A(xJwnts arKI Reports) Regulations 2LK18 only to the extent required lo provide a 'true and fair Mew.. This departure has involved following the Statement of Recommended Practice applI(b to Chariti preparing their a(xounts in a(Lordance wth the Finana81 Retjxting Standard applicable in the UK and Republic of Ireland {FRS 102) issued on 16 July 2014 ralher than the previous Statement of Recommend1 Practice.. ACCting and Reporting by Charities which was effeth.ve from 1 Aw'l 2005 lyjt whh has since been wilhdrawn. 2. Accounting judgements and estimation uncertainty In preparing )Inancial statements it is nec8ssary to make rtain judgements. eskn'males and assumptions that affect the amounts reiwnised in the ffinancLal statements. The following jgeMentS and estimates are considered by the Governing Body to h8ve most signtfjcant effect on amounts recognised in the finarrial statements. The GovemirvJ Body. in applying the accounting wAicies. have irlUded an estimate f(x the Colleg8'S share of the USS and OSPS nSn erne Ikgbilrties. and an estimate of the useful economic life of its buildings. Otherwise rK) judgements were required that have a signffiLznt effect cn the amwnts recognised in the financt81 statements. The College cal{lateS its liability for USS pension defi¢tt based on the Current agrd schedule of deficrt contiibutions wth reference io the latest sctsme valuation. 3. Inc(Hne re¢ognitlon All income is recognised C1 the College has enttllement to the inixjme. the economic benefft is prot)Ae, and the amount can b8 relkgbly measur8d. 17
HERTFORD COLLEGE Statement of Accounting Policies Ygar ended 31 July 2022 Income from fees. Office for Students support and other charges for servlcos Fees receivable. less any scholarships. bursaries or other a11thvanS granted from the College unrestiicted funds, Office for Students 5UPPOrt and d)anJes for SeNiS and use of the premises are re(xignised in the period in which the related Serv1 is provid8d. Income from donations, grarrts and legacbes Donations and granLs that do not impose Swif tjture perfoanrelated other specific conditions are recL)gnised on the date on whh ihe thaty has entiuement to the resource. the amount be rdiably measured and the ecofm benefft to the College of the donation or grant is probable. Donations and grants subject to tErfom)ance-related conditions are re(xNJnised as and when those CL)nditions are met DonatNJns and grants subject to other specific conditions are recognised as Ihose conditions are met or their fulfilmenl is wholly within the control of the College and it is tKDbable that the speufled conditv)ns wll met. Legacies are 0)gnised followiThJ grant of probate and once the College has received suffiLyent inforrnatK)n fYDm the exeuJtor(sl of the deceased's estate to be satisfied that the gift can be liablY measured and that the economic benefft to the College is probable. Donations, grants and legacies accruiw for Ihe general purposes of the College ar8 cxediled to unrestricted fvjnds. Donations. grants and legacies whid) are sUtr4t tg LX)nditions as to their use imposed by the donor or set by the temis (rf an appeal are (xedited to the relevant restricted furKI or, where the donation, grdnt or legacy is required to be held as cafftl, to Ihe endowment funds. Where (k)nations are received in kiThd (as distinct from cash rx other Motary assets). they are measured at the fair value of those assets at Ihe date of the grf Investment income Iterest on bank balances is a(xounted for on an arxwal basis with interest recognised in the period to which the InteSt relates. Income fM fixed interest debt sewTilies is recognised using the effective interest rate method. DivKlend InMe and milar dislriiyJbons are recogniwj on the date the shave interest becornes ex- dividend or when the right to the dlde on be established. In(x)me from investment properties is recognised in the perwxl lo which the rental incxtrmè relates. Total Retum accounting princaples have been adopted in relation to investments held as part of the permanent endowment. The G8rryiro valu6 of the trust fcy invesknent (the preseed permanent ¢apitsl) has been faken as the market value of the relevant investments as at 31st JU 2009. together with the original gifi value of all subsequent endowments reVed and transfe from the unapplth tolal telurn approved by Ihe Goveming Body to increase the value of the tst investment in line the RPI index. The balance of the investrnent unapplied totsl returns is auMulated as a o)mponent of the r81evant endowment funds with amounts from this rel8ased to income each year 81 the discretion ofthe (knerning Body. 4. Expenditure Expenditure is accounted for on an ac(xuals basis. A liability and rdated expenditure is recognised when a legal or constructive obligation Iximmits the Cdlege lo expenditure that will probably require settlemenL the amounl of whh can be TlablY measured or estimated. Grants awarded Ihat are rt perfOmwrIated are charged as an expense as soon as a legal or constructive otAigation for their payment arises. Grdrrts subject to pHfomiance-related q)rwJitions are expensed a5 the specified conditions of the grant are met. l exwnditure iTKluding support costs ar governance )sts are allocated or apportioned to the applicable experKliture terIeS in the Statement ol FinancHI A£tivilEs (the SOFA). 18
HERTFORD COLLEGE Statemont of Accounting Policles Year gnded 31 Ju 2022 Support costs which indudes governan ojsts {(x)sls of comptying with constitutv)nal and statutory r4uirementsl and other indirect costs are apportioned to expendtture categories in the SOFA based on the estimated amount attributable to that actsvtty in the year. either by referen to stsff time or the use made of the underfying assets. as appropnate. Irr8c))verable VAT is Iude wilh the it8m of expenditure lo which it relates. Intra-group sdes and charges belAYeen the College aTrY IL% subsid1leS are excluded from trading income and expenditure in the consofidated financial statements. 5. Leases Leases of assels that transfer substanliaHy all the risks and revrards of ownership are dassified as finance leases. The costs of the assets hetd urKler finan leas8s are induded within fixed asseL8 and depreaation is charged over the shorter of the kase term and the assets, useful INes. Assets are assessed for impaimienl at each rewrting date. The corresponding capital obligalh)ns under these leases are shwn as liabilities and recognised at the lower of the fair value of the aSed assets and the present value of the minimum lease payments. Lease payments are appmxtioned beeeN Gapttal repayment and finan charges in the SOFA so as to achieve a c£Jnstant rate of interest on the remaining balance of the liabilty- Leases that do not transfer all the risks and rewards ol ownership are dassified as operating leases. Rentals payable under 0rating leases are charged in the SOFA on a straight line basis over the relevant lease lerffls. Any lease in(ntives are recognised over the lease term on a straigm line basis. 6. Tangible Ilxed assets Land is Stated al cost. Buildings and wuipment are stated at cost less acujmulated depreciation arKJ any accumulaled impaimient losses. Expenditure on the acquisib'on or enhancement of land and on the acquisitM)n, consknction and enhancetnent of buildings whith is d1lpcY attritxJlat4e to bringing the asset to tts working condition ft)r ils intended use and amounts.ng to than £25,OW tcgether wth expenditure on equipment costing rrK)re than £25,000 is capitalised. Where a part of a building Dr equipment is replaced and the costs rApitaknsed, the U7rKJ value of those parts replaced is derecTrJnised and expensed in the SOFA. Other expenditure on equipment incUed in the r1 day-t&day njnning of the Cdlege and its subsidiaries is charged to the SOFA as incurred. 7. Heritage Assets The College has ckK)sen to h(4d heritage assets at cx)st. The llege has a number ofassets. irKJLJding items of art and historic texts that meet the definition of heritage assets under the SORP. The depreaated historic o)st ofthe maj(ty ofthese items is nil. Items purchased are wognised at )sl and items donated to the CclIe are recognised at fair value. The college has taken advantage of the exemption within FRS 102 rK)t to disdose transactions before 1 January 2015 as obtaining fair values for these assets would be irnpracticatrAe awKI the c)st of obtaining such valuats.ons Yuld <tiVe1gh the benefits tD the users of tFw fina[181 st*ments 8. Depreciation Depreaation is provided to write off the txist of all relevant taThJible fixed assets. 18ss their estirnaled residual value. in equal annual instalments over their expected useful ecorK)mic lives as follows.. Freehold propertie$ 30 -50 years Equipment 5 years Freehold land is not depreciated. The Ixist of freehcld land asscKiated th8 main histollc site 15 not induded in the balance sheet twjt is not material. The cost of Maintenan is charged in the statement of Financial Activits"es in the pwiod in which it is incurred. 19
HERTFORD COLLEGE Statwnent of Accountlng Pollcles Year ended 31 July 2022 The costs of maTr)r renovation prc4ects which in(xease Ihe service Fotsntial of buildings are capitalised and depreciated over applicable FHK)ds. 9. Investments Investment prKJperbes are initially recognised al their o)St and subsequenly measured at their falr value (market value) al 8ach reporling date. Purchases and sales of invesbT]ent properties are recognised on exchange of contracts. sted investments are initialty measur8J at their cost and subsequently measured at their falr value at each reporttng date. Fair value is based on their quoted price at the balance sheet date wf(hout deduction of the esb'mated fLrture selling costs Investments such as hedge funds and private equty fvnds which have rKJ readity ider)ttfiable market value are initially measured at their costs arKI subsequenuy measured al their fair value at each reporting date without deduction of the estimated fulure selling cosLs. Fair value is based on the most rent valuations available from their respective fund managers. Changes in fair value and gains and losses arising on the disposal of investments are credited or charged to the income or expenditure section of the SOFA as 'gains or losses on investments, and are allocated to the fund hokling or disFosing of the rdevant investrnenL 10. Other filncIal Instruments Cash and cash equivalents Cash and (zsh 6Nuivalents indude cash at banks and in hand and short term d8pcksits with a maturity date of three months or less. Debtors and credltors Oebtots and Ixeditors re1vable or payable within one year of Ihe reporting date are canied at their at transaction prTrce. DeblcKs and creditors that are receivable or payable in rrK)re than one year arKI not subject to a market rate of interest arB measured at the present value of the expected future reIp or payrrÉnt discounted at a rnarket rate of interesL 11. Stocks Stock5 are valued at the Iow8r of ojst and net reali5able value. cost brj the purchase price on a first in, first out basis. 12. Foreign currencles The nCtIOnal and pr8sentation currency ol the College a1 its subsidk4ries is the pound sterling. TranSaCnS denominated in feIgn currencies during the year are translated into pounds steding using the spot exchatvJe rates at the dates of the transath"ons. Monetary assets and liabilities denominated in foreign rrenCIeS a translated into pounds sterfing at the rate5 apFAying at the rep¢yb'ng dale. Foreign excharye gains and losses resulting from the setdement of transacions arKI from the translation of monetary assets and liabilities denofflinated in foreign currencies at the exchange rdtes at the reporting date a recognised in the I[orne aNI eynditure section of the SOFA. 13. Fund accounting The total fvnds of the and its subshdiaries are alated to unrestricted. restricted or endowment funds based on the origins of the fvnds the tems set by the donors. Endowmnt rMJ5 are further suEydivided into permanent and expendable. Unrestricted funds can be uwj in fUlthetsn of the ObltS of the Cdlege al the discretion ofthe Governing Body. The GovemiThJ Bcty may deude Ihat part of the unrestricted fijnds shall be used in future for a Speci pvrpk)se and this will be a1 ts by transfers to appropriale d8signaled fvnds. 20
HERTFORD COLLEGE Statemenl of Accounting Policlas Year ended 31 July 2022 Restricted funds mprise grfts. legacies and grants where the donors have earmarked frjnds for specific purFK)ses. They consist of either gifts where the th)nor has sFwified thal Ixjth the capital and any income aTising musl be used for the pup)ses given or the inCMe on gifts where the donor has required that the capitsl be maintained and the IrMe used for specific purposes. Permanent endowmerrt funds arise where donors specify that the bJNJs SId be retained as capital for the pemianent benefft of the College. Any InMe arising from thé capital w1 be accounted for as unrestricted funds unless the donor has FAaced restrictions on the use of that irOMe. in which case it will be ac(x)unted for as a restricted fund. Expendable 8ndNment funds are similar lo pernnent 8rKYowment in that Ihey have been gwen, or the College has determined baSj on the circumstances that they have been given. for the long term benefit of the Co118ge. However. the &)veming Body May at their dietiOn determine to spend all or part of the capital. 14 Ponsion sts The College parbcipates in the Universities surannUation Scheme a1 the University of Oxford staff Pension Scheme. These Schemes are hybrid pensk)n schemes. provmling defined beffits based on salaries as well as benefits based on (xintrtbutions. The assets of the schemes are each held in a separate trustee-admirlistered fund. Because of the mutual nature of the schemes, the assets applicable to the defined benefit membership are not attributed to individual CoUeg8s and s¢her-de (x)ntributK)n rates are set. The College is therefore exposed tr) actuarial risks asscciabj with other UniversitEs' and Colleges, employees and is unable to identify 119 share of the undertying assets and liabiltb'es of the defined benefft scheme on a consistent and reasonable basis. As requlred by Section 28 of FRS 102 "EmOYee beneffts", the College accnts ft)r the herneS as if they were wholly defined contiibulion schemes a1 o)ntributions to these schemes are recognised as a liability and an expense in the period in whth the salaries to which the contributions relate are payable. The College has entered into agteerTErts for both schemes (the ReLxJvery Plans) that detemiine how each employerwithin the schernes will fund the overall scheme defiuts. A liabillty is reccyJnised at each balance sheet date for the disoy)unted value of the expected fvture contribubon payments under these p&st Se1 deficit fundirKJ agreements, with changes to these liabilities being recognised as an expense in the peri(yJs in whth the Ghang8S OWJf. 21
HERTFORD COLLEGE statemént of Accounting Policios Year end8d 31 July 2022 This page is left intenlionally blank
Hertlord College Consolldated Statement of Flnancial Aclivi For the y•ar ended 31 July 2022 2032 Total £'o 2021 Total rDOO FdS Fd5 Funds 00 INCIXIE AND ENDOWMEpifs FROII.. Charllabl• •clivitles." YEathing. research and restial atrTradIng IncoTr Donationsand ltyacjgs Investmq¥ 1nveslrnt Inwme Totsl ralum albJcBtsd crth9rlnM6 Toial InGorne 527 T24 6.751 4,995 241 1.385 1.610 2A35 149 361 2.7 12.71 4156 2.461 7.604 16.445 11344 11751 12.138 EXpENDuRE ON.. CharAble aCllvkl•s'. Teachiry. re¥earth arvj MSentia[ Generatrng funds= FutKlraisuig Tradyu e>&dre Iwestrnenl m8w8rnertto¥>sts Totsl Exp8thdiiure 11.710 12.099 .470 457 457 795 1.090 14444 fQO 342 821 11.253 12 351 12 191 N8t kncomffjpondllurel bDforogaknsl (knosesl 718 13661 306) 5.192 t g8in51llosse61 on in¥ethents 12 11.0481 11,9401 13.0951 13.298 Net Inc•m•fflExpendttur41 (3.7() 15 Translorn bekn¥tsn fvrmls 17 11.0711 1471 Olh8rrnco9ni%d ¥aln¥1105505 Insllbs9¢$1 on revaluatk)n of frd as al gains1j0swl def1 benefit 8chemg5 Nai movemomtin lunds lorthe year 5821 I4} (2,3531 15.4011 18.49) Futhd baarKes browjht l+Jnvard PriQryearlu adlu¥tment 17 5M53 98179 7g,IB3 19411 Funds cllrri8¢ forward at31 JLy 2122B 92.978 97.673
Hertford Coll•g8 Consolidated Siaternent ol FinarKial Acliv5ts Forthe year •ndod 31 Jufy 2021 RethLtsd Endo Furmts Funds co 2021 Total £wo Fu INCOAIE Ptt4D ENDOWUENTS FROM.. Charitable aclhrtl•s: Teth9. reseaK and reddentsl OtherTradlno Intomè 4.976 1fj 4.995 1,3B5 Invpstrnenl iE Tctal rern alloL to TrAe Oth8r irKX)tne T¢)tsl inEornp EXPENDITLIRE ON: 123 412 1.731 132051 2.451 17.th)2 11.4651 16.445 Te8thing, resèarth arny Generkng fund5: Fundrats11 Trading expendlknre InveBtmefit marwThnl cests Toi•l Exkndthro 9.3fO 160 ,470 620 342 819 342 133 133 10.Y9 169 kncornellEwdituTrl beforegal 6.053 739 11.598 5.194 Net g8in51Oos5EsI ty) investrnits 730 11.741 13.298 N•t Incorn•l(Exwdi¢vwFI Transfers bWO8n ftTrl$ 31 131} Not mo¥•rnent In funthforthe year Fund balanS bUghtforW8rd 6.783 14 J75 1W7 4256 10.112 18,492 79.183 Funds ¢•tfvd flyT at31 tY 21.158 5.853 97.675 24
HertFord College Consolidated and College Balan Sheèts As at31 July2022 2021 Group £)) 2022 College e¢KJo 2021 College £000 Group Tangth assets prop InvestrlS IrwestrneTrls 10 11 12 13 14.347 7,952 115.7 11599 9.389 111.441 14.347 7.952 115.705 111841 Totsl Fixed As¥ets 13&004 1¥429 138,CX14 CURRENT ASSETS St( Deblers Cash 8t bank in harnl 21 1.4PA 1 J64 21 1,971 1,213 14 T¢bl41 CunBrt A55ets 913 Z869 1533 3,20S uAlLlEs 15 I1.3) 11.2011 11,388} CURRENTNSSETS 1.473 1.817 TOTAL ASSETS LESS CURRE1 LIABILITIES 135J15 139.477 13Q761 139.P1 CREDITORS: f811ing due after one ye 16 140.DOOI 140.OLX)I {40.WO) 140.0001 95.815 99.477 96.761 99,821 Defined beneflt penslon lfiablKy 83n 11.8011 12.83n 11.8011 TOTAL ASSErs 978 97.676 93.W24 98,020 FUNDS OF THE COLLEGE Endowmentfunds 68J11 70,664 311 s,3 Unrestrfcted funds D&signaled fund5 Ge¥Jeral funds R&valuaon reserve Pension r8S8Nt 14723 14.846 8,114 14EIO 15.1 8,114 (1.8011 11,8011 97.676 93,924 98.020 Tha financ1 stargm&)ts WEwa¥•j aTrJ *thl ttyi55LE GwwnirvJ ColbJe C 23rd NowetrttEI2022 Tru5tg8.' Trusts
Hertford Coll onsolidated Statement of Cash Floy For the year ended 31 July 2022 2022 £'ooo rooo Net prowd¢d by (Ltlod kn) opwvwJ athll Cash flows from investing actl¥ltles DiandS. IntereStd rents from in%skn%nts Pr(eedS frorn sale of txoty. 8nd eqU1w Purchas8 of property, pltar1 equiprrEnt 4155 200 116041 1171 2.4 217 12,9211 11.169 34.010 23,0 Purchase of Investm Nel cash provlded by (used inl invo8llng a¢tlvMi Cash ffow8 finan¢lng athities Coupon on Private PCent PdKI 15041 20,000 RB(Eipl ofn(bwrnenl Nat cash provided by luwl inl Ilnanchry acb¥iti 19661 19,496 hang• In fA8h an¢J cash equiv•rts in thè rnporkng ped 15631 11461 Cash a1 cash eqwla1 * the beglnnlThJ ofthe rewtw nod 1.508 Change kn and ta&h tquwis In the reFwtlry perlod 15631 11441 Cash and cash equivalents atthe end of tho Trpryllng puvjd 24 26
H¢nford Collep Not•s th tl* flnanclal statsfflwts Fortho wrendpd 31 Juty 2022 ro)0 24S 125 erHEFCE io NC¥ 13 17 11Z4 L61 OThERWIC¢JIIE
Hertfard Colege Not*$ b) tho flnanclal statsm¢ffl8 Fortho yfjarended 31 jy2022 4.727 4857 1674 9A70 134 937 4v¥s OFSUPPORT AP4D(4)¥ÈAWCEC05rs 2J19 47) 1275 192 212 Yotsl 371 1.14¢ fwjwy 1.1 IS21 179
Hwttord Colkw Not•sto th• fin4n¢iai rthe 3f Juty2022 TOtsI rEslr*tEd
HèrtlDrd Colleg Forthg 9ded 31 ju 2022 £.rI11.£TO.mo .rx1l.E.Cl .l-ElD)I £1fAI,fth411Q.IWJ1 P¥ 2T.1JS 1374 ofY?¥ 14%13 14J47 A31YtJu¥Y1 £12kndtr
Forth• yoar¢ndèd 31 2022 rAIII rt&y¢ 21,111 Jof 27.617 1.178 11018 •r4N• sKwkofy 14233 Tolal £uo 929 r(oo 7.1 EGUThPI4DOTHERWVESTIIBIIS 11QWD 514 20.ODJ IDveskiJ 1.740 7.052 I1} 1157 11*5
Èrtfortl Colhp Not•¥ tothe firAnclBI 2tatsnnts FoTtho year onded 31 Juty2022 Hédln UK 11729 11729 14 4&31S 19JXI 4&31S 64n Tol•l 13 PWMTPIID$UBWI•IIYLvif£RTAqIGS EKpwOur4 12481 1XJ 11331 llfvrthBltsorrflof Tradpdthr 151 13 1.88S
Forth&ywended 31 Juty 2022 V7) 140 13• 40.oro DFII¢JValEIIISQN 714 .7T4 Pl¢tsnerMty E PA MK** Fw¥J Fdb7KhpFu 1214 Cwrwo2FeIkzh 187 1414J 141ZJ IF 1753 874 3) 114 14.346 I1) 14 I1,} Tov4Alfw 97th
Nots¥ to ffinanclal 5tatemBnts For tk y•orerKIB4131 July 2022 17 AIIXYStsCIIQ¥EllÉotI Totra •k31J &J.774 11r P.4351 ii.pthi ,7fy) 624 E. ktttA F (31 118> 61 123 s1 Swrt FE1k1Tr?FUr tV4p¢IsSttrdsF 1331 2214 161 f611 2,140 10 lsrtSUI11P"B.lFLyy 68.311 Undry4duaIeÈUff¥l 16 10T 144 E M VWWllknÉTnot 12 274 11.1241 J1 f126 14 V3 11,lJl81 9J41 1.124 1.124 {1 a81 TcalFIYA
Hertford CollegD Notss toth? flr•¢o1 siat•mwts ForthB yearended 31 JL* 2022 Pl31 7931 10,101 .7T4 rMrkTay 1491 151 16 ¢41 11tr11 1214 vi f1¥ 41 Z49 p) 10 11.740 31 E. K4. V•410WIknTry 15 140 31 319 1113) 4U 139 1753 874 110 &114 14 43DI I11} 14375 VO549) 21.159 143T5 14209 110.94S 21.182
Collfjg Not88 tpthe flnancial st3tarnent¥ FTrrlho yqarended 31 Juty2022 Endowment Funds IconJnuedl BaLin(e èt IAwwt)21 I75 6934Y IntOMe4nd 8sMèn'.ifxe IWeSne.lnS l Orts8esl Totslln•)rneaTrdgth)s plwonoltotsi 7961 7961 FeÈsandtrartsfers InYeslmenÈ r RH adiuthen Totsifees 11BBJ 183241 16&121 R3XI LirtetkntJuhf102Z 9.161 67 Endowment funds IcDntinuetll ndi hrbmerMBy Fellovtsnip E T Mthèl uaring-:i& Fund (421 1.014 147 {591 479 628 k- ilj ijji ervan Noordan FovThJ Felush 628 16 271 578 F8115h1p Fund tch1 stUt Surp rkAFrs Sthlarslip Fu Iw Er.(Ml Fthd 12011 2.139 760 1331 (281 12,4aS1 &5101 419 Fw 134 58.768 Fnd$tOl
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