Hertford College Annual Report and Financial Statements Year ended 31st July 2023
Hortford College Annual Report and Flnanclal Ststemgnts forthe year ended 31st July 2023 CONTENTS Governing BCKJY. Officers and Advisers ReKth of the Goveming BJY Auditor's Report Statement OfA&)nting Policies Consdidated Statement of Financxal Athils 13 16 21 Consolidated and College Balance Slets Consolidated Ststement of Cash Flows 23 24 Notes to the Finan(xal Statements 25
Hertford College Govemlng Bodyi Officers and Advlsers Year ended 31st Juty 2023 MEMBERS OF THE GOVERNING BODY The Members ofthe Goveming BIMty ar8 the College's charity trustees under charity law. The members of the Goveming Body who served in Offi as trustees duritvJ the year are detailed below. Gov8rnlng Body Fellow College Ofllce {11 (2) 13) 14) 151 Professor E Baldwn Profass H Bayley Professor C D Brewer Ftrofe5sor E Chatzis Mr J K Clark Bursar Professor Z F Cui Professor F Duart8 Dr D Dwan HarassmentAdvig)r MrT Fletcher Prirvipal Tulor for Grluates Professor B M Frellesvig Dr A Galanis Dr K Greasley Fofe5sor D Greaves Professor D M Hopkin Dr J Kiaer Dean of Degree5 Professor D lQelak Profe8sorA G Lauder Professor P Liwxygakns Dr J Lorimer StLhlent Cor¥Jud Offir Dr K Lunn-Rockliffe Prevent Lead Professor l McBride Professor M Maiden Dr L Malafowis ProfessorA Mikes Tutorfor Equalty & Diver>ty Professor P J R Millic*n Dr E Mortrner DrA Nair H8TrassmentAdvisor DrSJNew Dr O J Noble Wood Dean awvj SCR Steward Professor S Pararneswaran Fellow fr Researth Professor P F Roche Investrnent Bursar
Hertford Coll•ge Govemlng Body• Officgr5 and Advlse Year ended 31st July 2023 Goveming Body Fellow College Ollke {1) (2) 13) (41 (5) F Rornei L Slater tc Sloan Porter Fellow. sretary to GB Fellow Librarian. Pro Prinrapal Professor E Smith Ctr L Sp8ight Professor G Stemberg Professor D Thomas Professor C Vallance Senicy Tutor Dr C V91iz Inderendent Prèvent Monilor Dean of Degrees Senior Fellow Dr Vyazovskry Professor T WILson Professor M Wooldrmlge Professor A C S wOlard M5 F Whear8 Professor R G Zub8k During the year the activities of the Goveming BrKly were carried out through various committees and Officers. Membership of the main commttiees is sn aLM)ve for Fellow. {1) Academic Committee (2) Treasury Committ8e (3) Development Committee (4) General PurFM)ses Committeo (5) College Commttte8 COLLEGE SENIOR STAFF The senior staff of the Cdlege to wrn swtfic aspects of day to day management were delegated during the course of the year. and who are regarded as Key Management Personnel. was as follows. College A(xountant Mrs Judi Banks Domestic Bursar MrJames Hdl Registrar and Director of AdmisOnS Ms Lynn Ffjathene (unbl 31.8.22) Ms Meg8n Roper (from 8. 11.22)
Hertford College Governlng Body? Officer5 and Advlse Year ended 31st July 2023 COLLEGE ADVISERS Invostm8nt managers Rathbones Investrnent ManeMent Ltd 8 Finsbury Circus London EC2M 7AZ OxfcKd Universty Endowment Management 27 Park End Street Oxford OX1 1HU Audltor Crowe U.K. LLP 55 Ludgate Hill London EC4M TJW Bankers Bardays Bank PLC Oxford City Branch PO Box 333 Oxford OX1 3HS S0cItOrs Knights 1759 Midland House West Way Bodey Oxford OX2 OPH Unitad Kingdom College address Hertford C(Alege, Catte slreeL Oxford OX13BW Website www.hertford.ox.aG.uk
HERTFORD COLLEGE Report of the Goveming Body Year ended 31 July 2023 REPORT OF THE GOVERNING BODY The Members of the Governing BcJy present their Annual RepcKt for the year erKied 31st Juty 2023 under the Charities Act 2011. t(yJether wth the audtted finala1 statements for the year. REFERENCE AND ADMINISTRATIVE INFORMATION The Principal Fellows and Scholars of HertfoTd CCAge in the UnNersity of Oxford. which is known as Hertford College ("the Cdlege'}, is an eleenK)synary charter8J charitable corporation aggregate. The College was founded by an Act of ParlBment in 18T4 that Iorporated Magdalen Hall as Hertford College. An Act of Partiament of 1816 had grant Magdalen Hall the stle and fEsidual possessions of an earfier, by then defunct. Hertfow(I College. This had received a Royal Charter in 1740, being the successor to Hart Hall which claimed its origins in a hall of residen established by Elias de Hertford c. 1282. The College registered with the Charities Commission on 17th Augusl 2010 (registered number 11375271. The names of dl Members of the Goveming Body at the dale of this report and ol tr in office durirvJ the year, together with detsils of athsets ot the College, are given on pages 2 to 4. STrUCTURE, GOVERNANCE AND MANAGEMENT Governing documents The College is govemed by its Statutes Mle under the provision of the Oxf(d and Cambridge act 1923 and approved by Order in Council on 12th Octcthr 2011. Govemlng Body The Governing Body is constituted and regulated in accordan wilh the College Ststutes, the terms of which are enforceable ulbmately by the Visitor. who is the Chancellor of The univeIty of Oxford. New member5 of the Goveming Bc#Jy are elected by the votes of not less than thirds of the lotal number of Fellows with the [sent of the PrwKipal. The Governing Body determines the on-goirvJ strategiG direclK)n of the College and regulates its administration and the managemerrt of its finances and assets.11 meets regularly under the chairmanship of th8 Prinupal and is adwsed by committees. Recruitment and training of Members of the Governlng Body New Mernbers ofthe Goveming Body are indted into Ihe worknrys of the colle. including Governing Body policy and procedures. by the Principal and Buar. Mernrs of the Goveming 8(xly can attend trust infomhgtion "efirJ$ to ke&p them Infomod of th&lr duties as trustees and about regulatrxy requirements. Remuneratlon of Members of the Governing Body and Senior College Staff meMt[S of Ihe Goveming Body receive m remuneration or benefits frrjn their trusteeship of the Cofiege. Those members that are also empk)yees of the Gdlege receive remuneration ft)r their work as employees of the College, which is set in a(wrdance wth the advi of the College's Remuneratictrn Committee. Whefe possible and revan¢ remuneralion i% set in line with that awajed to the University's 8&3demiG Staff. AJI slaff are all remunerated al a level whK equals or exceed5 the Oxford Living Wage. which is set at a level &Jove the National Limng Wè3e. The r8muneration of Fellows is set by the Treasury Committee in ling Wlth guidelines sel by the Remuneration Commrttee by reference to the annual (anonymised) survey of Colleg8 offirS and Fellows. Benefils conducted by the UnIvety and conferen of Cdleges. Organisational managemont The members of the Goveming B(Mty m*t at least six times a year. The main WO of developlng th'r policies and monitoriro their imKAementaltl is cArried out by various committees..
HERTFORD COLLEGE Report of the Goveming Body Year ended 31 Juty 2023 Academic Committee: adN4ses and reFrt to Governing B(xly on all matters relating to academi policy and has oversight of the a(2demic repuL2tion of the College in all its aspects. Treasury cnMittee. has oversight of the College's ffinan5 and investments and reports to Goveming Body on the effectiveness and propriety of the Cdlege's financial management. Development Committee: leads on the devetopment of the strategy for the College's development activities, identifies funding priorities within the framework of the Cotlege's 5ts3tegic plan and liaises with the Treasury Committee to oversee the p8rfom)8nce and financial Tnanagement of the Development Office. General Purposes Committee.. receives reFths frum and provrdes support to the Principal on College business in his role as its representative within the Unwersity and the WKler worfd. The Committee reNeS rx)minations for Cc41ege Offices and thp membeTship of ¢ommrttees. College Committee: has overshJht of vari¢yJs memtrrs' mattw5. induding the thmeslic management of the College. Remuneration Committee: consists offour persons not in rlpt of remuneratlon from the College of which three are not members of Governing Bcty. with the Principal and the Bursar in attendan. The Committee makes recxjmrneatiOnS to the Goveming Bcty on Fdk)ws' allowances and College Officers, stiFends. The daY-tdaY njnning of the College is delegated to Bursar. supported by the Dowstic Bursar. Th8 Bursar attends all meetings of the (veM1j BcJ5 Committees. exPtAcadBmiC Commiitee. Group structure and relationshlps The College administers a number of special trusts, as detailed in Notes 17 and 18 to the financlal statements. The College has tsvo wholy-0wrj rKJnthritable yjbsidigries. Hert[cd Cc4e Programmes started trading on 1stAugust 2010, and tts activities primarily cornprise conferen5 and English Language prcorammes which use the Cdlege's tacilities when not in use by Ihe College. Annual profits are donated to the College under the Gfft Aid ScheTh. Hertft)rd clege DesNJn armj Build started trading on 13 MarGh 2020. and its aclimties comprise designing, MmIssjnig and constTUCting new estates facilities for the College. Annual profits are donated to the College under the Gift Aid Scheme. The Collrye is part of the collegiate UnIvety of Oxford. Material irtsrdependencies belween the University and the College arise as a consequence of this relatijnship. OBJECTIVES AND ACTMTIES Charitabl• Objects and Airns The College's oblts are to advan Put4 leamirvJ by the provisi)n of a cdlege in the University of Oxford. The Goveming Body has considered tt)8 Charity Ccfftmission's guidance on pU1C benefft and, in keeping with its objects, the College's aims the public iEnefit are to: Promote excellence in undergraduate education, induding pastoral and academic support. Make that excellence sible to all who from it regardless of theT social or economic background. Provide pastor21 arKi academic SUPFth to graduate students. and Promote exllenCe in research on the part of its Fellows arKI Stip8ndiary Lecbjrers. The aims of the College's subsidiaries are to help to lurKI, or otherwise svppyL the achievement of the College s aims as above.
HERTFORD COLLEGE Report of the Governlng Body Year ended 31 July 2023 The College remains committed to the aim c( provklirvJ puNic b8nefft in adanc8 with its founding principles. The Coilege's Public Benefit stateffnI is published on the Cdlege websit8. The College advances puilic leaming by provKIl hpJher educa1ion to undergraduate and FQStgraduate students within Oxford University and by SUPForbng the pursuit of publidy diss8minated r8search. During the year. the College had approximately 420 UrNJeaduates. 262 poslgraduates, and 35 fellows who have contractual Okl9atiOnS to teach as well as research. The Cdlege provides putlic benefit by Dffering higher eduCatn lo its undergraduates, much of it via the tutorial system which provides Ihe opportunity to meet with a tutor on a weekly basis during temi b'me. In additson. the College prOveS dasses. seminars and other form5 of teaching as appropriate. in coniutKtion with the UniVersiS departhenls. To support Stlent leaTning, the College also prOVe$ the use of the College's litnry a1 accommodation and actyvety prorrKltes the wits cultural and s(Kial edu(xtK)n of its students thruugh the provis of comwter, SFMNts, careers adwce arKI ottrw facililEs. Graduates at the Clege forni an imFMYtant part of the a(xlemic tx)mmunity. While they are taught al their University Faculty, every graduate student is a]gned a Cdlege Graduate Adviserwho provides pastoral support. The Cdlege also advan(xs research in a raNJe ol disciplines by employiNJ academics who have a contractual obligation to undertake published research. and promding them a supporttve academic aknosphere. including the provision of research granls, lil)rary and computer facilities, office accommodation and meals. Research is disseminated Ihrough published papers. books, websites and lectures. The College supports the research of academics wh). at the beginning of their careers. have already shown outstanding promise in their chosen field of rvtsearch by providing 8 fulty funded Junior Research or Career Devdopmenl Felk)wship fty a ricKl of up lo three years to enable the holders to cOntrate on their topic of research. The College offers undergraduate placEs on the basis of academic meriL The College aims to attracl the students who are most able to benefit from an Oxford educaticn regardless of sex, gender. income, ethnic origin, r81igion, previous uCational opporbJntLy. or disability. and a(*vely works to recruit Sdents from non-trltioTra1 backgrourKls by en(xyJrdgirKJ applicatK)lls from under-represented groups. Financial support 15 available to undgradUateS frDm the UK (and the EU in some Cl5nceS) to assist them with the sts of tuition fees and living Ix)sts whilst at the College. In addition to the student loans pVided by the Student Loans Company that are available to undergraduates from the UK, other financial support from the University arKI the Colleg& is available to undergraduates who arg from hcHJseholds where income is below a certain lev81. A range of financial Supp is also available to Graduate students. In 202212023 a total of £780k was spent on student SUPFM Oxford Bursaries are available to UK undergradu8tes from househdds a55essed as having a sufficiently low irNxJme. In the 2022123 year. 110 of Ihe College's undergraduate5 re1ved an Oxford Bursary ftjnded joinuy by the University and the C(Alege, with a total value of £414k. In 2011112 the College introduced a means-tested Hertford Undergraduate Bursary of £1.OCN), for UK undergraduates. This bursary was extended to EU students in 2012113. IN 2022r23. 130 Hertford students were awarded the Hertknd UndewgTrduate BuTSary. Graduate furKllng is also provided in the fomi of sthdarships and grdnts. Tr College awarded a lotsl of £395k in 2022123 for this pup)se. The College aso offÈrs Studènt Support In the forn of grants to trKJth undergraduate and graduate students who experience unexpected financial hardship. for academic reLited travel. or as rent subsidie$. In 2022r23 the Collw distributed £157k to support students in this way.
HERTFORD COLLEGE Report of the Governing Body Y8ar 8nd8d 31 July 2023 ACADEMIC REVIEW Hertford welcomed one new tutorial fellow in 2022-23.. Dr Beth rtImer. Tutorial Fellow in Animal Bicl- ogy. In addiknon to her eXlIent research history and teaching expe.en, Dr Mortimer brings with her a signifi(3nt background in ass, widenirKJ partiopation. and jtreaCh, which will )mplemeNt the STEM portion of our outreach programme. Cc41ege also particjpated in recruitsnent exercises for a further three tutorial fellows who will j(in the CcAlege in SUbseqt years. During the 2022-23 academic year sixteen new Stindiary lecturers joined us. and we appointed a fur- ther six non-stiwdiary lecturers. A working group FBS &)nvened at the request of Governing B(xJy to review the ever-increasing demands on aclel¢s, and how the College can best support the careers of ILS academic staff with respect lo research. and to teaching. The workn.ng group is stil undertaking its data collectior) and il is anticipated that a repxt wll be finalised the next academic year. FolloMng the UCAS Confirmation cyde in August 2022, we welcomed a srndler undergraduats fresher (xjhort. of 117 (plus two retuming students resuming fir5t-year study in Michaelmas temil. in October 2022. This continued the downward trend establisPd in the previous year fDllowing the exceptionally large Ix)hort the College wdcomed in 2020. whith was a result of covid-related disruption and changes to assessment and marking methods. As vath 2021's h(rt 92% of Ihe 2022ntry cohort were UK stu- dents. of which 77Dkn were from state schods (9% hNJtrEr than the Un(versity average} and 45% from dis- advantaged ba¢kgrounds (as deteined by SLKiOveconomic andlor educational information). The 2022-23 academic year was the first since the pandemic where Ihere were no pandem1c-1ate teaching arrangements wuired. The intrrKluction of tyFed closed-book exams was new for this year, and necessitated an even greater amount of SUPF¢rt than usual from the College's IT team for those stu- dents who sit th8ir exams in college. separate from Iheir cthort. The University and College were affected by a markiro and assessments tM)yjtt I'MAB'I, which stsrted in Aplll 2023 and continued until the end of Septernber 2023. Some exam Ix)ards were unaffected while others were signrficAnty impacted. though the University Intr0dLed wnitigatK)n measures to minimise the number of students whose degrees C4)uld not be completed on tirne. The vast rnajority of Hertrord stu- dents were able to graduate on time. bul three re¢eived temp)rary declared awards. It is anticipated that these will be converted lo traditional dassified awards in due course. On the outstanding work has been marked. This also means that the Norrington RetK)rt fur 2022-23 will be significantly delayed; in- deed, al the time of writing. the Norrington ReFM)rt for 2021-22 is still awaiting final confimiation and dis- semination. Our outreach ft)cus continues lo be on link regIS of Camden, Ess8x. Soulhend-otbsea. Thurrock. Medway, and Peterborough. There was a fairly even srAit of the number of students engaged through outbound, iToUnd. and online activities, aThJ we have o)ntinued to offer a monthly Teachers, Bulletin to teachers in our link regions during Ierm-kn". The sustained experien inttiatives, where students en- gage with the i)utreach team and college at multiF4e ocCaonS over a pericmj of time, have proven espe- ally usefiJl for parbcipants, we are planning to exparMI this more Fossible. We are proud to have met our target number of six Opportunity Oxford offers in 2022 undergraduate admissions rlld. ensuring our enhanced support for students coming from significandy disadvantaged background5. 0 Access Strategy. developed duriThJ the 2022-23 academic year, sets out a plan for r- ther enhancements to our access and outreach provision, as well as for suptK)rting students who are orb- course and who cx)me from disadvantaged backgrounds, in recognition of the fact that they will eA)ntinue lo require academK, pastoxal, and f nanaal suppK)rt during their sdIeS. The College Welcon 105 new FK>Stgraluate StleI5 for 2022-23: of lch 67 We taught master's students and 38 were research Stsents. We SUPF¥)rted 31 graduate sludents with fvll or paiti81 fuNJing course fees andlor Iwiw StindS. arKI are revEwing our graduate scholarship provision for the com- ing years in line %wth vari(yJs funding opporbjnities and our strdtegic oil'ectives.
HERTFORD COLLEGE Report ofthe Goveming Body Year ended 31 Juty 2023 FINANCIAL REVtEW The Financial Statements for 2022123 foll(yw the requIrents of FRSI02. A strong retum for our Intemalional Programmes activit accnted for the m8joiity a circa 12% uplift In operating income. Increased Development income also made 8 significant u)ntribution. Reported expenditure for the yearwas th)wn by 4%. In facL the cUrnt economic dimate o)ntinues to put pSSUre on costs. but the apparent reductn in teaching. research and residential costs masks this, as it includes the tx)sitive swing in pensi¢Ms reseThes {wh. in combinab.on with the negative swing the year before serves to exaggerate the movement}. The urKJertying operatir¥J thsts in this category have in fact increased by around 6%. despite sorne significant costs reductions through estates wst savirkgs. The net impact ofthese movements resulted in a tK)sitive mvement for net operating profrt. although this still remains negats"ve. wilh trading income st"Il having sorrE way lo go lo retum lo pre-pandemic levels. Projections for the coming year show a healthy further increase. On a cash basis. 2022123 saw a retum to a postbve tM)sition on core operatons. The College's investmont ldir5 saw a dedine in walu8 of around £0.8m, apin refiecting ecoTh)mic condth'ons, but represents a 0wJown frDm Last year's cifLa £3m r&luction. RoseNes policy The College's reserves policy is lo maintain a minimum of Ihree months, free reserves to enable it lo meet ils short-term financial obligations in the event of an unexpected revenue shorttall, lo allow th& Cdlege to be managed efficiently arKJ to provide a buffer that would ensure uninterrupted services. The College's free reserves at Ihe year*rKI aThKfyunted lo £7.4m. representing retained unrestricted income reserves, excluding an aThin1 of £13.5M for Ihe bwk value offixed assets and the res8rve against future Pension Deficits required by the implementats'on of FRS102 {£2.155m). The governing body have reviewed the free reserves and are satisfied that the level of free reserves, the IXJent rash flow projections, and the availability of externa] ffinanung faalities would [0VIde an adequate safety nel in the event of adverse operating conditions. Totsl funds of the College and its subsmjiary at the year-end an)nted to £91.889m (2022: £92.978ml. This includes endowment capital of £68.9m. dgnaled funds of£O.85m and unspent reslrictsd inco frS lotalling £3.85m. The Fellows have assessed the Cdleg8's abilty to continue as a Ing COnM. The FelloNs have considered several factors when fcffiiing their cL)nclusion as to whether the use of the going concem basis is appropriate when preparing these financial slatements. induding a review of updated forecasts, and a conSideran of key risks. The Cdlege has a large en¢S)wmenL and financial tkrforman COntinL to be mnilored regularly. The Fellcms have scyutinised key assumpb.ons wthin the ffinancial budget and forecast. and are satisfied that the current level of free reserves. available investhent and cash balances are adequats to meet the College's obligations as they fall due. HaviThJ regards to the above. the Fellows are satisfied that there are no material uncertainties around the decision to adopt the going concem basis of acojuntirg in preparing these financiaE statements. Risk management Tre College has on-going pr¢¢esses which erat throUght the finanoal year for idenbfying, evaluating and managing the principal risks and UnrtaIn'eS fac&Y by the College and its subsidiary in undertaking their activities. The Cdlege identifies and regularly reviews the risks tt fa5. the potential impact of each risk. the likelihood of recUrrer. the severity of imp8cL and th6 st8PS taken to mibgale each partiujlar risk. P1paI risks are assessed by the Treasury Committee. and mcxe detailed risks by other committees le.g. Health and Safety Committee). College Officers and Heads of Department. Training cc4Jrses and other forms of career develownent are mje availab to TTUStees and members of staff lo enhance their skills in risk-related areas. The Goveming Body. who have ultimate resF)onsilylty for managing any risks faced by the College, have
HERTFORD COLLEGE Report of the Goveming Body Year onded 31 July 2023 rewewed the prosseS in pla for managiro rtsk and the Principal i(jentifi1 risks to which ihe COle and ils subsidiary are exposed and have (X)nded that rOst systems are in place to manage these risks. The principal risks and uncertainties faced by Ihe Cdlege and its subsidiaries include.. l>Jvemance risks- e.g. inapprcyriate organisational slNcture. diificulties rECnJIti trustees with relevant skills, conllirt of interes¢ Operational risks- e.g. Serv qualty and develOpn[ c¥)ntract wang. eEnployment issue5'. heath and safety issues: fraud and misappropriatton.. Financlal risks- e.g. accuracy and timeliness of finanaal illft)rmati(, adequacy of reserves and sh flow. diversty of income sources. investment tnanagernent., Ext8mal risks- e.g. wblic perception and adverse publioty, demojraphic changes, govemment policy., and CotnplianLE With law and regulab.on - 8.g. taCh of trust law. emF4oyThent w, and regulative requirements of part"(>Jlar activib.es such as fund-raising and infomiation security. strategies for managing the risks identfi8d by the Cdle9e as described above indude.. Operating structured and fom)alised processe5 for the i(lentFfication, assessment, and management of the reswnse to risk. Establishiro the appropriate committees to e¥L8ure oversight of all key activibe& with responsibility for fcmulating )MMendat)n$ to GovemiTrJ Bc#ty" Providing appropriate training lo all mmters of staff. and at Ihe inductKJn of new Fellows. Ensuring accountability of College Officers to the appropriate cx)mffMttee. and for the committees in turn lo be accountable to the Governing Body. Developing and irrplementing key Fdiues across the main areas of actlvity of the College. induding, for example, a(ImS1onS licY, health & safety policy, and informatDn security wlicy., Ensuring the appropriate irUran tKAi(ies are in place, and rwewed regularty. Fundraislng In the 2022-23 financial year, philanthropic in(x)me retUTlled to previou5 levels, with £1.25m raised in donations (Induding legacies) and a ftrther £766k in new edges. to be frJlfillpAI over the next 3-5 years. Additionally, based on current dats, we can expectto receive c£350k in lower-level regular or owff gtfts per annum across the same period. Our donor numbers dipped slightly to 940, comprising recuning and new donors. Donations continue to support a range of different prcyects, wlth a parbcular focus this year on the library. We also saw an increase in donalion5 trywards graduate scfKplarships. as well as the usual high levels of SUPF)Ort for unrestricted funding. Our usual event programme of gaudies. subject reunions and net4vc**ing events Yras Supplemented this year by the Hertford Festival, a 0-daY Programme of talks and famity activities. The programme attracted a different audience. helping us to brDaden (Mjr reach to a wid8r group of alumni. We continued to see high levels of engagement on social fTEdia. and received excdlent feedback on our publications, the Donor Rewrt and lege MaJazine. Hertford College is MmItted to following 51 practi(x in relation to al fundraising activities. The Development Director sits on Governing Body and convenes Ihe termty Development Committee, which provides oveNght of all fiJndra1sg ar alumrv relat.ons acts in college. Hertford is registered with the Fundraising Regulator and has protOS and t(xEdureS in place to ensure that fijndraising is q)en. hon6sl. and respectlul. adhering to legal arml irklusty-speufic guidelines. Herttord does not engage any 10
HERTFORD COLLEGE Report of the Goveming Body Year ended 31 Juty 2023 professional ihird parbes to cary oul frJndt8ising aclivities on Tts haff. Investment policy, objectlves and perforniance The College's Statement ol Investmenl PrincieS sets ¢xrt Ihe folk)wng aims.. Generate income to support the College's charitable educational aitn5. Improve the educational experien of (xjrrent and fvlure generati$ of sludents and to pursue excellen in sCharship by means of teaching and research and the provision of the lIra1 and social rA)nlext which suptx)rts thts. and Produce the optimal sustainat4e relum given the cdlege's low risk trAerance and to preserve the value of investments against Ihe threat of inflat¥)n over the kjng temi. The investment strategy and perfornance is monitored by the Inv&stment AdvOry Committee which i turn reports to the CcAlege's Treasury Committee. At the year end. the value of the Ccllege's investments (financial and property) was £120m12022 E121m}. of which £73m represents endowèd or rèstricted funds. The trjtal investment inttjme was c. 3.1 % gross (average value). The Co11Je.$ investment obleclves are to balance current and fuiure beneficiary needs by.. maintaining lat least) the value of the inveslr(nts in real terms" producing a consistent and sustairbable amount to sUpt expenditure.. and ddivering th8Sg obiectNes within acceptat4e levels of rk. To meet these objectives the College's lnvesttynts of its pernianent endow&J funds are managed on a total rern basis. maintaining diverSffiCatn aC)sS a range of asset dasses in order to produce an appropriate balance beeen risk and relurn. In line swth this approach, the College atutes allcw the College to invest pemianent endowments to mwmise the relaled total retum and tr) make available for expenditur8 each year an appropriate proptithn of Ihe unapplied totsl return. The value date for establishing the initial values of the Investrnent Fund and the Unapplied Tota Retum was 3151 July 2009. The investment strategy. policy and perfomiance IS monitored by the Investsmenl Comrnittee. At the year end, the College's long tenn investments {rmanent erKlowment only). )billing securities and property investrnents, totalled £68.9m. Direca income eamed on these investrnents amounted to £2.74m. and net value gains were £0.94m. Under the total rern a)untIng basis. it is the Governing BThYy's policy to extract as income 4.25% of the value of the relevant investrnenls. However. to smtxrth and rnoderaie. the amounts witr)drawn are calculated on the average of the year erKI values in each of the last five years. Due to fluctuating investrment values over the previo5 ffive years, th8 effective amnts withdrawn may vary from the nominal rate. For the year ending July 3151 2023, an amount of £2.8m was withdrawn as income. The Governing Bt)dy will keep the level of irorne withyrawn under review to balance the redS aThY interests of current and future benefiaries of the lege'S activibes. The Goveming body is sab"sfied ttt the overall [wf0mn of investment a(atvib"es for the year has met the obifjctives set. 11
HERTFORD COLLEGE Report of the Governing Body Year ended 31 July 2023 FUTURE PLANS The College has agreed a 10 year plan to deveknp its buildings and faciltties (Yhe Estates Slrategf ). This wll encompass sign[fan1 refijrbishment works (e.g. upgrading student accommodation). the expansion of existing facilities {e.g. a new knbrary arKI improved study space), and provisiDn of new facilities (e.g. additional graduate accommodation). The anticipated expenditure over that horizon is around £75m. to be found from a oinbination of reserves, furmjraising. nd capital, and cther finance aTrangements. with the expectation of major capttal expenditure in the next 5 years. during a period of challenging economic pressures. it wll be mre imp)rtant than ever to ensure that operational expenditure is optimised. STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILMES The Governiro Bc*Jy is responsi1e for preparirvJ th8 Repoyt of the Governing Body and the finanual statements in accordan applicable and regulalw)ns. Charity law requires the Governing BO to prepare financial statements for each financial year. Under that law the Goveming BThYy have prepared the financial statements in a)rdance with United Kingdom GenerallyAccepled Accounting Practi (United KiNJdom Accounting Standards and applicable law), indudirvJ FinancHI ReFthing Stsndard 102: The Financaal Reporting Standard Applicable in the UK and Republ of Ireland IFRS 102). Under charity law the GovemirwJ Bcxty must not apwove the finaal Ststents unless they are satisfied that they give a tn and fair view of the state of affairs of the Cdlege and of its net income or expenditure for that peri(xl. In weparing these finanryal statements. the &)veming Body is required to: select the st SUitae a(xxJunting 1cleS aThJ then apply them c£nsistenlly,' make judgments and accyjunliw eslima18s that are reasonable aN1 prudent state whether apFAi(xble accounlirrfJ slandards. induding FRS 102. have been followed. subject to any material depathres disclosed arKJ explained in the finanrial statements. state whether a Statement of RecommeThJed Practi {SORP) applies and has been followed. subject to any material departures which are explained in the finanaal statements,. prepare the financial statements on the gcirwJ aJrKEm IS8 unless it is inappTDPTiate to presume that the College will conb.nue to operate. The Governing Body is responsible for keepirvJ proFW accountiThJ recJNds that are sufficient to show and explain the College's transactions and disdose reasonable ac¥raCY at any time the financial rx)sition of the College and enable them to ensure that the ffinancial statements mplY with the Charities Act 2011. They are also responsible safegu8rding the assets of the COlle and ensuring Iheir proper application under charity law arKI he for laking reasonable steps fLY prevention and detection of fraud and other irregularities. Approved by the Goveming Body on the 22 of November 2023 a signed on tts behalf by: Mr T Fletcher K Clark Pr]nclpal Bursar 12
HERTFORD COLLEGE R•port of thè Auditors Year ended 31 Juty 2023 Independent Auditorf5 Report to tho Trustees of Hertlord College Opinlon We have audited Ihe financial statem8nts of Hertford College for Ihe year ended 31 July 2023 which com prise the Consolidated Statement of Finanual Activities. co[KIated and College Balance Sheets, Con- solidated Staterwnt of Cash Fknws and notes to the finaTra1 staternents, including signifficant a(Lounting policies. The financial reporbng frdmework that has been apFAied in their prepardtion is applicable law and United KiNJdom Accounliw Standards, induding Financk41 ReFQrting Standard 102 The Finanryal ReFfJrt- ing Standard applbcable in the UK a1 Rewblic ot Ireland (uni Kingdom GenerlyA(ptedACcoUnting Pracbce). In our opinion the financial statements.. give a In and fair Vie•¥ of the state of Ihe group's and the parent charitys affairs as at 31 July 2023 and ofthe group's IrMe and receipts of endowments and 8xpenditure, for the year then ended.. have been prcperfy prep in aC¢ffilar with United Kingdom Generally A¢¢epted A¢nting Practice" and have been prepared in accordance with the requirements ofthe Charities A(A 2011. Basis for oplnlon We ct)nducted our audit in aCrdarKe International Standards on Auditing (UK) (1&4s IUKII and applicable law. Our responsibilities under those standards are furlher described in the Audit('S resportsi- bilities for the audit of the financial statements seclion of our reporL We are iNJependent of the grwp in accordance wlh the ethical requirements that are relevant to our audit of the financial statements in the UK, irlUding the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accord- ance with these requirements. We bdieve that the audit evidence we have obtained is sufficient and a propriate to provvje a basis for our opinion. Conclusions relating to golng concern In auditing the financial statements. we have conduded that the trustee's use of the goiTrJ contsm basis of accounting in Ihe preparation ol the finanaal statements is appropriate. Based on the work we have perf¢ymthY. we have not Klentifia any matetial uncertainties relaUng to events or conditions that. individualty or ¢dleth"vety. may east signifi(anl doubt on the charity or the group's 8bility to continue as a goiro corKem for a of at least twefve rTh)nths from when the financial statements are autSed for issue. Our responsibilities arml the responsibilttses of Ihe trustee5 ¥th to going (x)ncem are deld in the relevant sections of this rep other inforntlon The trustees are responsible for Ihe other infomiation contsined within the annual report. The other infor- mation comprises the infomiation included in trtre annual reFrt(. other than the financial statements and our auditor's report thereon. Our opinion on Ihe ffinanci81 statempJ)ts does not cover the other infonatIon and, exp1 lo the extent othemse explidty stated in wr rpr*yL we do not express any fom of8ssuranc8 condusion thereon. Our responsibility is to read the other infomiatKJn and. in th)ing so. cons¥Jer whether the other infomiation is materially inconsistent W[ the financial statements or cr knowledge obtained in the audit or otherwise appears to be materially misstated. If we ¢dtify such material inconsistencies or apparent material mis- statements. we are required to detern)iie whether this gives rise to a material mi5Statement in Ihe financial statements themsefves. If. based on the work we have performed. we condude that there is a malerial misstatement of this other inforniation. we are requiwl to report that facL We have nothing to report in Ihis regard. 13
HERTFORD COLLEGE Report of the Auditors Yearended 31 July 2023 Matters on whlch we are requir8d to report by exception We have nothing to report in reSpt of the following matters in relatk)n to which the Charities (Accounts and Reports) Reguiatiorts 2008 requi us to report to if. in our Opin. the InfOall( given in the financial statements is ino)nsistenl in any material respect with the trustees. report" or sufflent and proper actunting recJ)rd5 have not been kept by the parent charity. or the financia stslements ate not in agreement Wtth the accountirMJ records and retums. or we have not rEceived 811 the informalion explanations we require for (xjr audit Responslbllttie5 of trusts•s As explained rYK)re fijlly in the tnJst8es' responsibHities ststemenc the trustees are respor)sible for the preparation of the financial statements and for beiThJ satisfied that they give a tnje and fair wew, and for such intemal control as the trustees determiTE is necessary to enoble the preparation ot financial state- ments that are free from material misstatemenL Wther due to fraud or error. In preparing the finanaal statements, the trustees are responsible for assessing the griyjp and th8 parent Charity's ability to continue as a going nIn. disdosng. as applicable, matters related to going ca)ncem and using the going cOrM baS of accounting unless the trustees either intend to liquidate the charity or to C8as8 operanS. or have no realith alternative but to do so. Audltorfs responsibilities for Ihe audit of thg financial statements We have been appointed as aUd[fr under section ofthe Charitie5Act 2011. and reFLYt in accordan wilh the Acts and relevant regulations made or having effect thereunder. Our objectives are to obtain reaSonae assurance about whelher the financial statements as a whole a free from material misslatemenL whether due lo fra orer, and to issue an auditor's report that indLths our opinion. Reasonable assurance is a high levd of assuran, bul is not a guarantee that an audil c(- ducted in accordare with ISAS (UK) will aKvays det8ct a material misstatement when it exists. Misstat ments can arise from fraud or err and are C(sler& material if. indivhyualty or in the aggregate. they uld reasonabty be expected to irffluen(x Ihe ecx)rw)mic decisions of users taken on the basis of these financial statements. Details of the extent to which the audit syas CorIdj capable of detecting irregularities. including fraud and non-compliance with laws and regulations are set out below. Afurther description of our responsbi ilities for the audit of the finanryal slalemits is lorated on the Finan- ci21 Report"ng Council's website at." Mvw.frc. .uklauditorsre onsibilikn'es. This description ftirms part of our auditor's repcrt Extent to which the audlt was Considered Capab of (ktecting irregularttles. includlng fraud IegUlaritIeS, includirKJ fraud, are instances of Th)n-compliance with laws and regulations. We identified and assessed the risks of material misstalement of the financial statements frn irregulariles, whether due to fraud or error. and discussed these belween our audit team. We then designed and perform8d audit prwedures responsive to those risks, indudirKJ ob12ining audit evidence sufficient arKI appropriate to pro- vide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks wtlhin which the parent chaiity and group operates. foSIng Ihose laws and regulations that have a direct effecl C the determination of material amounts and disdosures in the financial statements. Tr wS and regulations we Considered i this context were tsxation legisLglion. the Charities Act 2011 together with the Charities SORP IFRS 1021. We assessed the required txitnpliance with Ihese184ts and regulations as part of our audit procedures on the related financial statement items. In addit"on, we consithred provisions of other laws and regulatK)ns that do rl have a direct effect on the 14
HERTFORD COLLEGE Report of the Auditors Y8ar ended 31 Juty 2023 financ4al stslements Iwt compliance with rnight be fundaffiental to the parent charity's and the group's ability to operate or to avoid a material penalty. We also considered the opp(wbJnitses and in(En- tives that may exist within the parent charity and the grLWJP for fraud. The other laws and regulations w& considered in this context for the group were General Dats Protection Regulations arHJ Health and Safety regulab'ons. Auditing standards limit the required audit Pr(edureS to identify non-com11ate with these laws and reg- ulations lo enquiry of the Trustees and other man&pment and inspection of regulatory and legal corre- spondence. if any. We Identif the greatest risk of material impad on the financial statements from iwularities, induding fraud. to be within the reo)grutson of income. and the overrKle of Controls by management. Our audil pro- cedures to respond to risk of recognition induded selecting a sample of InMe during the year. agreeing back to the rdevant documentation and ensuring it has been recognised C0ThY. Our audit procedures to respond to the risk of management override induded enquiries of management about their own identification and a&sment of the risks of irUl2ties. sample testing on the posting of joumals. reviewng accounting esb'mates for biases. rewewiThJ regulatory correspondence with the Charity Commis sion and reading minut85 of meetings of those charged with govemance. Owing to the inherent limitations of an audiL theTP is an unavoidable risk that we rnay fK)t have delec some matellal misstatements in the ffinanal statements. even trugh we have properly planned and per- formed our audit in ac(x)rdance wtlh auditing standards. Forexample, the further removed rK)n-complian( with laws and regulab.ons (irregularities) is from the events and transactions reflected in the finana81 stsle- ments, the less likety the inherenty limited pr[lre5 rUired by auditing standards woukl identify it In addition. as with any audit, there remained a higher risk of non41etectton of irregularities. as these may inVVe collusion, forgery, intenti(Inal omis(}nS. misrewesentab'ons. or the oveTride of intemal controls. We a not resFM)nsible for preventing non-(xJmplIan and canrK>t be expected to detect non-compliance with all laws and regulations. Use of our report Tris report is made solely to the charity's truslees, as a bcKly, in accordarKe with Part 4 of the Ctraritses laGGounts and ReFx)rts) Regulations 2008. Our audft work has been undertaken so that we might slate to the charity'5 trustees Ihose matter5 we are required to state lo them in an auditor's report and for no other purpose. To the fullest extent pennitted by law, we do not accept or assume responsibiltty to anyone other than the charity and the charity's trustees as a LKWJY. for our audit work. for Ihis reporL orfor the opinions we have formed. Crowe U.K. LLP Statutory Auditor London Date.. 29 November 2023 cr(fy U.K. LLP is eligible for appointmentas aUditof the charity by virtue of its eltgibility tsappointrnent a5 auditor of a company under section 1212 of the CoMpanS Act 2006. 15
HERTFORD COLLEGE Statement of Accounting Policies Year ended 31 July 2023 Statement of Accounting Policles 1. Scope of the financial sLthmonts The financial statements present the Consolidated Ststement of Financial Actiwties (SOFA}, the Coralidated and College Balan Sheets and the COnglated Cash Flow Statement of Cash Flows for the College and its wholty owned subsidiaries HetUord Prcgramm&s Limited and Herttord College Design and Build Limited. The subsNJiaries have been consolidated from the dale of their fiirmation, being the dale.from which the College has eXsed control through voting rights in the subsidiaries. No separate SOFA has been presented for the College alone as cUenIY permitted by the Charity Commission on a cor&S1Onary basis for the filing of wnsoiidated finawial statements. Basls of accounting The College's individual and consiAidaled finan(ial statements have been wepared in accordar with United Kirodom Acc(HJnting Standards, in parbcular'FRS 102.. The Financial Reporting Stsndard applicable in the UK and Republic of Ireland, (FRS 102>. The College is a public benefft entrty ft)r the purposes of FRS 102 and a registered charity. The College has therefore also pPared its indNidual and consolidatj financial statements i accordan wlh 'The Statement of Recommended PractKe applicable to charits'es preparing their financial ststements in a(ZOrdan with FRS 1 OZ ffhe Chanties SORP IFRS 1021}. Having review the fijnding faciltties avaiLable to Ihe Cc4kge together with the expected ongoing demand for pla and ts COlge'S future projected cash flows. the Goveming Btxjy have a asonable eXpectst'C that the College has adequate resources to continue its activities for the foreseeable future and ¢CSider that tkre We no material uncertainties over the College's finanual viability. Accordingly. they also continue to adopt the goiry con basis in weparing the financial statements as outiined in the Statement of Acc(MJnting and Reportiry Responsibilities on page 12 and to adopt the hislori(>l (x)st basis. exp1 for the Measuent of ir)vestments and certain finanGial assets and liabilities at fair value with nVeMentS in value reported within the Statement of Financial Activities ISOFAI. The principal ac£ounbng polteS adopted ar8 set out below and have been applied consistently thrwghout Ihe year. The atxounts (financial statements) have been prepared to give a'true and fair, vie4Y and have departed from the Charities (Accounts and Re[s) Regulab'ons 2C(J8 only to the extent required to provide a 'true and fair we. This departure has involved fr)Ilowing the StaterrEnl of Recommended Practi appli(able to chaTities preparing their 3nts in aOrdan wth Ihe Financial Rerting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 Juty 2014 rather than the previous Statement of ReoL)mmended Practice: Ac£oJnkn"ng and ReportirwJ by Charities whith was effective from 1 Aprl 2005 bul which has sirKe been wtUKJrawn. 2. Accounting Judgements and estimatlon uncertainty In preparir)g financial statements it is nSSary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial stateThnts. The following judgements and estimates are considered by the (wemiThJ Body to have most significant effect on amounts recognised in the financial stalemenls. The Goveming Body, in applying the acixxjnting p)licies, have induded an estiTnate for the Cdlege's Sha of the USS and OSPS penOn sche liabilities. and an estimate of the useful enOmiC life of its buildings. Otherwise no judgements weTe required that have a sKJnlfint effe(* on the amwnts recognised in the financia statements. The College lculate5 its liability for USS pension defiot based on the current agreed schedule of deficit ContritrtiDns with reference to the latest scrne valuation. 3. Income rncognilion All income is reLL)gnised On the College has entillement to the income, the ewnomic benefit L8 pthable, and the amwnt can be reliably measured. 16
HERTFORD COLLEGE Statement of A¢Uting Polictes Year ended 31 July 2023 Income from fees. Offlce for Students support and other charges for services Fees re1Vable. less any scholarships. bursaries or other alk)wanee5 granted from the College unrestricted funds, offi for Students supFx)rt and charges for seNS and of the premises are recognised in Ihe perioxj in whith the rdated serv1 is prowded. Income from donatlons, grants and legacies Donations and grants that do not imrA)se specific future perfman-related or other spectfic C4)nditions are rec(onised on the date on which the tharity has entitlemenl to the rescMJe. the anw)unt can rdiab]y measured and the econom benefit to the College ofthe dOnatn or grant is probable. Donations and grants subject to FerfcffMan-reialed conditions are rewJniwJ as arKI when those conditions are met Donations and grants subject to other speufic conditions are recognised as those conditions are met their fulfilment is wholly wthin the control of the College and it is pr(k)able that the SFocified condilw)ns wll be met. LegleS are recognised following grant of probate and ortt the Collage has receN8d suffiaent information from the executorfs) of the deceased's estate to be satisfied that the gift can be reliably MeaSud and that the economic benefit to the is FthEAe. Donati($. grants 2nd legacies accruiry for the general purrKJses of the c1Je are credited lo unresiricled fvnds. Dorwtions. grants and legacies are suty'ect to conditions as to their use imposed by the donor or set by the terms of an appeal are credited io the relevant restricted fund or, where the donation, grant or legacy is required to be held as capital. to the endowment funds. Where donations are received in kind (as disti1 from cash or other monetary assets). they are measured at the fair value ofthose aysels at the date of the gifg Investment income Interest on bank balan$ is aGGount8d kn on an acyJual basis wtth interest rerA)gnised in the perir# lo which the interest relates. Income from fixed interest debt seties is r8coJni%ed using the dfectNe interest rate method. Divid8nd ino)me and sinylar distr1bOrts are reo)gnised on the date the share interest becomes ex- dividend or when the right lo the dmdend be established. Income from irwestment proiHt'es is rec¢*3nised in Ihe tnc to which the rental income relates. Total Retum accounting principles have been adopted in relation to investments held as part of the permanent endowment. The caryiThJ value of the trust for investsnent (the preserved tnanent capital) has bn taken as the market value of the relevant investrnents as at 3161 Juty 2(XJ9. together with the original gfft value of all subs4uent endowments reiVed and transfers from the unapplied total retum approved by the Goveming Body to increase the value of the trust investment. The balance of the investrment unapplied lotsl returns is acojmulated as a (x)rnFK)nt of the relevanl eThJowrnent funds with awnounts from this being released to income each year at the diseretion of the Goveming Body. 4. Expondiiure Expenditur8 is acc(MJnied for on an aCcnlS basis. A liability and rdated expermlrture is re¢cnised when alal or constructive obligation Commits the Cclkge to expenditure that will probably require setuement, the amount of which can be reliabty measured estimated. Grants awarded that are rt performance-related are charged as an exp8nse as soon as a legal or constructive obligation for their Payffnt all. Grdnts subject to perfomiance-related conditions are expensed as Ihe specified o)nditions of the grant are met l expenditure induding gJPPOrt (X)sts and govemance costs are allcTrled or apPorned to the applicable expeTrJilure categories in the Statement of Financkql Actswties (the SOFA). 17
HERTFORD COLLEGE Statement ol Accounting Policies Year ended 31 July 2023 Support which indudes govemance $ts {costs of mpl'n9 vrith consts'tutional and statutory requirementsl and other indirert (x)sts are apporboned to experKltture categones in the SOFA based on the estimated amount attributable lo that activtly in the year, either by reference lo staff lime or the use made ofthe undertwng assets: as appropriate. IVerable VAT is included with the item of expenditure to which it relates. Intra-group sales and charges beeen the College and its subsidiaries are excluded from tr&Jing IrMe and expenditure in the corwlKJated financial statements. 5. L•asès Leas@s of assets that transfer substantialty all risks and rewards of ownership are classified as finance leases. The costs of the assets hdd under finan(x leases are irlUded within fix a&sets and depreaation is charged over the shorter of the lease tem and Ihe assets, useful Iwes. Assets are assessed for impairment at each reporbng date. The corresponding capital obligations under these leases are shown as liabilities and rectKJnised at the lower of the fair value of the leased assets and the present value of the minimum lease paynEnts. Lease payments are apporboned tween capital rep8ynnt and finance charges in the SOFA so as to achieve a nstr1 rale of interest on the remaining balance of the liability. Leases that th) not trarbsfer all the risks arn1 rewards of ownership are dassified as operating leases. Rentals payable der operating leases are charged in the SOFAon a straight line basis over the relevant lease lenns. Any lease incentives are recognised over the ase tenn on a straight line basis. 6. Tangible fixed assets L8nd is slated al cost. Buildings and equipment are stated at cost less xcumulated depreciat1 and any accumulated imp&mEnt losses. Expenditure on the acquisition or enhancement of land and on the acquisition, constructlon and anhancement of buildings which is dir8Ctty attributable to bringing the asset to its working condition for ils intern1ed use and amounting io Twre than £25.000 together with expendittjre on equipment cosliw more than £25.0(K) is rapitalised. Where a part of a building or equipment is replaced and the cosls Capitalis]. the (xrrying value of those parts replaced is derecognised expensed in the SOF Olher expendityre on equipment irwrred in the norn1 day-to4ay running ofthe College and its subsidiaries is charged lo the SOFA as iwKurred. 7. Heritage Assets The College has chosen to hold heritage assets at cost. The has a number of assels, induding items of art and historic texts that meet the definition of heritsge assets under the SORP. The depretxaled historic cost of the majority of these items is nil. Items purchased are recognised at cost and items donated lo the Colw are recogni%ed at fairvalue. The college has taken advantage of the exemption within FRS 102 not to disdose transactions befcffe 1 January 2015 as (knlaining fair values for these assets Wld be impraccable and the Lxlst of obtaining suth valuations would OLrtweigh the benefits to the users ofthese finala1 statements 8. Depreciatlon Depreciation is provided to write off the (t of all revant tangible fix1 assets, 18SS their estimated residual value. in equal annual insta1ft over their expected useful economic lives as follows: Freehold proFerties 30 . years Equipment 5 years Freehold land is not depreciatgj. The cost of freehold larKI assockqted with Ihe main historfc slte Is not induded in the balan sheet bul is not material. The ¢xtst of maintenance is charged In Ihe statement of Financial Activities in the peFiCMJ in whith it ks irrred. 18
HERTFORD COLLEGE ststement of Accountlng Policies Yèar ènded 31 July 2023 The costs of major renovation prc4ects which incxease the service wtential of buikliros are capitalsed and depreuated over applirable FRfKNJs. 9. Inveslments Investrnent properties are intbally reccgnised at their cost and subsequently measured al their fair value (market value) at each reporbng date. F4Jrchases and sales of investment pruperbes are recognised on exchange of contracts. Listed investments are inibalty measured at Iheir (x)st and subsequently rneasured at their fair value at each reporting dale. Fair value is based on their quot8d pric8 at th8 balance sheet date without deduction of the estimat future selling costs Investments such as hedge funds and private equity fvjnds whith have no readily identifiable market value a initially measured at their costs and subsequenty measured at their fair value at each rewrting date with(AJt deduction of the estima selling costs. Fair value is based on the most rftt valuations avai18ble from theÈr r8spective managers. ChaThJes in fair value and gains and losses arin9 on the diswsal of investments are edited or charged lo the income or experKliture section of the SOFA as'gains losses on inveslments. and are allocated lo t fvjnd hokying or diswwng of the relevant inve51ment. 10. Other financial instruments Cash and cash equtvalgnts Cash and cash equivalenls indud8 cash at banks a1 in hand and short teryn deposrts with a maturity date of three monlhs or less. Debtors and crodllors Debtors and creditors retsivable or payable within one year of the reporng date are Caled at their at transaction Debtors and creditors that are receivatAe payable in rrK)re than one year and not subject lo a market rate of interest are measured at the present value of the expected future receipts or payment (lis(x)unt at a market rate of interest 11. Stocks Stocks are valued at the lower of cost and net realkYble value, u)st being the purchase price on a first in, first out basis. 12. Foreign currencies The fvnctional and presentation cJJThency of the and rls subsKli4rtes is th8 pound sterfing. Transactions denominal&Y in thgn rrenCieS durirMJ the year are trdnslated into p(xJnds sterting using the spot exchange rates at the dates of the transaclions. Monetary assets and liabiliti&s denominated in foreign currencies are translaled into poun(Ls sterfing at the rates apptying at the reporbng date. FOign exchange gains and losses resulbro from setuement oftransactions and from the translatDn of monetary aets and liabil85 denominated in foreign currencies at the exchange rates at the rertIng date are recognised in the i[Ome Ènd expenditure section of the SOFA. 13. Fund accounting The total funds of the Colkge and its subsidiaries are allc¢ated to UntrIcted. restric*ed or endowrrEnt furKls based on the origiAS of the frjnds and Ihe tenns set by the donors. Endowment funds are further sub4ivided into permanent and eypendatAe. Unrestricted fijnds can be used in furtherance ofthe objects of CcAlege at the discretion ofthe verning Body. The Governing Body may decide that part of the unrestricted fijnds shall be used in future for a speufic and this will be acoyjnted for by transfers to appropriate designated hjnds. 19
HERTFORD COLLEGE statemonl of Accounting Policies Year ended 31 July 2023 Restricted fiJnds o)mprise gtfts, legacies and grants wlEre the donors have eannarked fvnds specrfic purposes. They consist of either gifts where the donor has specified that both the capitsl and any income arising rnust be used for Ihe purFxJses given or the income on gifts where the donor has rwuired that the capital be maintsined and the InMe used for SFeCtfic purposes. Permanent endowment funds arise where InorS spectfy that the funds should be retained as capital for the permanent benefit of the College. Any income arising from the capttal will be accounted for as unrestricted funds unless the dOrr has placed reslJicbons cfft the use of that inwme. in which case il 11 be aca)unted for as a restricted fijnd. Expendable endowment fijnds are similar to pennanent erKlowment in that they have been gNen. ( th8 College has determined based on the Cilmsr£S that they have been given. for the long term benefft of the College. However. Ihe Cy)verniThJ Bcwjy tnay at their discretion detemiine to spend all or part of the capital. 14. Pension costs The CDllege parbcipates in the Universities Superannuation Scheme and the Univetsity of Oxford Staff Pension Scheme. These schemes are hybrid F%nsion schemes. providing defined benefits based on salaries as well as benefits based on ntTibUtios. The assets ofthe schemes are each in a separate trustee-administered fund. Because of the mutual nature of the schemes. the assets appIlble to the defined berEfit membership are not attributed lo irKlividual Colleges and scheme-wde )[rit)u.0n rates are set. The College is Iherefore exposed lo actuarial risks assr)aated with other Univer5ib"es' and Cdleges, employees and is unable to identify its share of the underlyirKJ &ts arml liabilib"8s of the defined benefft scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 "Employee tenefits". the College accounts for the schemes as if they were wholly d8fined contribution schemes and (x)ntributions to these sthemes are recognised as a liabilty and an expense in the peric*l in whith Ihe saLgries lo which the ntLltion$ relate are payable. The College has entered into agreements for both sthemes (the Recovery Plans) that det8rn7ine how each employer within the schemes wll fund the overall scheme deffi(¥15. A liabilty is recognised at each balar sheet dale for the discc4Jnted wdlLE of the expected fubjre LLMtn"butK)n payments under these past S8Tvice defiat fvndiro agreements, wth changes to these liabilities being recognised as an expense in the perw)ds in which eharwes occur. 20
Hertford College Consolldatgd Statement Ctf Flnanclal Acllvit For the year ended 31 July 2023 2022 Total roc FLm( F& rooo INCOME ANO EFLIOWMENTS FROAI.. Teaching. rese2rth and reshJentl cher7radi tn¢ome Donattons and l•gAd•s 6.Y)1 220 7,121 6.751 385 800 817 Investment incnme Total rthm aloLatpd to Ir¥)B Otherinw T¢lal 147 352 1520 12.8271 1719 4.156 17 1475 46 12,138 12J4B 1.316 18TI 11577 TeachirKJ, researchand resKntK91 Generan9 fund6.' FundraLsing Tradiry expendlknB Itwestrnent ln¥Lageent¢O Tolal Ewdlturs 10301 975 11?76 12,099 457 798 1.0gQ 14,444 812 933 1161Z 812 1.166 1182D 226 226 Nwt kn¢oThel(ExpBnthlur•l befrjre IbsHs1 2,306 Net gain91Owesl on 12 11.8081 47 938 (823 18,0951 Net knMrnel(ExjlUreI P,07 381 11066 Transfer8 he lumds 17 1521 Other reCry1S8d galnEAossos GnlI0$} on revaluai&)) olfixed assets Not m¢)¥9nTrt ih yr 411 573 11.0661 15.4011 Fund balarxes brought foar 17 68.311 98,379 Prlory•4r*und adju5tmHit ¢arrt8d thard at31 lY 19,178 91 J15 92.978 21
Hertford Colje Consolidated Statement of Flnanelal klibryt For the year ended 31 July 2022 2022 Tot £Y)oo Fthjs Funds £))00 ro ¢OIIEAND ENDOWMENTS FROII.. ¢hwllabl a¢Uvlte8: Tththlng. resaar¢h and r8SidE3l Other Tr8dlng In¢om& Donatkins ar189a¢e8 Irwstrnents Invesknenl Irume Total rrn alk)¢8tyJ tolrKyyne Other inwe Total incor 6.527 6.751 385 241 559 1.610 149 1397 (2,71 4,156 11244 1.(9 11751 12,138 expENDITURE IXI: Charitable actlvltlÈ8.' Teach1r. regear aThl re&)81 Genering fur3.. Fundraising ¢xperwJiiure Investment Mat[CO¥ts Total ExwdltiJr• 11.710 12.099 457 798 1.090 14,444 937 12 351 141 191 13. Not InwrrrfExpendurpl belore gan$ .$58 (2.3061 met901n(lOsS¢sI on 11.0481 11D7) 11.9401 ,D551 Net IncorntllExpgnd#ur• 113c61 753OTr TM8lers lts¥eon frJnd5 1,124 11A1771 Net movBment Infd510TIhe yBgr Fund baances brh1 fOd 5821 21.a62 (4661 5.853 113531 YQ,664 15.4011 9B,379 Prioryeerlund atym8nt 119481 Funds carrted formard at 31 2t228 3.439 68.311 92.978
Hertford Coljege Consolidated and College Balance Sheets As at31 July2023 2023 122 Gt(W 2023 College rooo 2022 CDI]Égè FIXED ASSETS Tangibb assets Prorerty investrnents Other lnVestrnts 10 11 12 13.905 10.063 1tWJ.664 13,599 9.389 111.441 1&905 10.063 109.664 13.$99 9,389 111,441 Total Flxed A55ets 133.632 134.429 133.632 134,429 CURRENT ASSEYS 14 3.302 211 Cash at bank 8rKI in hatKI 570 449 Totsl Current A88 3P34 1913 3.$33 LIABILlEs CreditcK5'. AnThts %vithin ar 15 13.4 {127) (2,2101 11.2011 NET CURRENT A8SErs 2,2 TOTAL ASss LESS CURRE1 LIABILITIES 134.070 1.815 14355 136.761 cREDORS. falllng due after more than ono 16 140.MO) 140,fml 140.0001 140.omi NET ASSEfs BEFORE PENSON AW OR LL4BiurY 95.815 ,761 Defined benefit penwon Sche lia>ilty 111551 12,83n 1551 I2,7) TOTAL NET ASSETS 91 115 FUNDS OF THE COLLEGE End0wTntfuns 68.311 68.311 R¢striei¢d funds 3.439 Unrestricted fvnds Dttignated fthds Generd fund5 Rwa1Uati resw¥8 Pensbjn reserve 14,751 577 14,724 9341 15.040 577 15,670 9.341 I2.1) 11837) 91315 91978 ¥J.Y24 TrJsle8: Tee. 23
Hartfd College Con$olidated Statement of Cash Flows For the year ended 31 July 2023 2023 rmo rooo Gash proded by (used inl +JpÈf41kng aGtfvitkns (3.6871 Cash flows from InveStW act Divid&rKls. interest arK1 rents investr Proceeds the sa]È of prttp¥ty. ttsnt and11 Purca8e of WO, pL9nt and ewi)mt Proceeds from sale ofi0¥8thnts Puroase of inveslm8nts Net cash Pd• by ILK%d th) IrIstIng actfvitles &n2 4,155 200 P.6041 11.571) IS940 2A31 18321 4.ogo Cash flows from fwi¢in9 adrvitie5 Cowon cfi Private AErnent Pa Cash inlbws from new Receyl of end0wmt cash provided by (used kn) finwckvJ actr 19661 19661 Chango tn cash 8nd ¢0sh oqulv41ents in the reporUMJ wiod 12311 15631 Cash aTrJ cash e4ur47lerts atthetsegini•ng of the od Change kn cash 8quWenis irt th¢ rFportlrwJ peri(l (2311 15631 Cash arKI Gash equLIents at end L*th& pwh 5T0 24
Hertrord Collo Forthe yeareTrded 31 JLdy 2023 1.120 712 ÈWD •IT )ty13 EqwtydNikr 132 2,IZ4 273 oTTr*RVIC1E
Hprtlvrd CollBg Notes totho finaneial stat*nAnts Forth• yvarenthd 31 July 2023 I•IPLY5150FEKPEIIDifLIIE IOF 3,874 11276 1S0 14 Othr T(rt•l 1341 1,912 125 125 781 314 YÈgtrir¥ 1319 LO[) Jn ass 1.057 12 221
FkntsStO fan¢la1 8ti•wt48 Ftsrt ywrtdÈd 31 Jty2023 GTanls 414 Tolal rBsfrfctqd 414Y Ji 18 12 Td* £IU,iK14W, £IQD.W1411g.(
Hertrord Colegè Not•¥ to tho fiaral Ilafements Forth• wr•nd•d 31 J2023 TBLE FNEDASSErs Totsl 27.135 2Y.•17 1Ute 1212 ndofy• 517 •ndofy Attstol 13 27.1%% ?717 At¥tstLye 1212 11766 517 11599 6T4 674 B•) Ta 14
HArtkrfd eollBge Forthe year endBd 31 July2D23 JI rVe$bl wEhJthf¥ryelL 11t43B 116,5LiI {4,ori>i 1,740 11681 ,6311 (ln 1(4 111,441 IiN65¢ tr¢UK 14 11729 12 iOftXS &4n ÉN73 13 PAIIEKfM4DSUBsiwEYufaJEFtrMpi& rd ClE4 2) 1341 15611
Notes to thefinanclal 5tat¢mwrt¥ Forthoyearended 31 J¥ 2023 14 DEBTORS 176 121 1• 15 CREDrroRS.. tdllnH Colknyb 3n (in (in 134 1*4 Cdlty
HErtlord Collegp Nvts¥ to thffnE1£l stsism•nts FrJrlh• ywendpd 31 J2023 Total Atji Jdy 251 1.015 1431 637 1571 (61 124 io Fw 1158 Skrun Futh1 10 16 V51 122 176 14 10 2r4 124 103 12 Fwls.¢ol Z471 13W5 1.124 15 12I13 B7T 12m3 19.176 Fth 31
trtford Coll•g• Notes to thfr fina10181¥0OTh Forthe year endEd 31 Juty2023 131J .774 59.7 16) E. m.vaL¥h*wIl1fits Trts Tr Pj 115 FkngerVBn (8) 145} FdlrMthPFthJ 2Z.4 (61} 1140 11) 10 51 101 187 13) ikEPertInts¢cf &v4V 274 1A79 11.1241 1105 V39Jn Ifw) 13>99 1.131 1.125 1435 1JJl81 13 1.125 14&8 227 T¢F
Notss to tntIal sta$entS Farthè y•ar•nded 31 Juty 2023 Endowment Funds Icontinuedl 91B 18 IUZ31 InveSbmenlm¥(men1I?eS RPlidlu51tnent Totalfeesandmnsfers 13 13 N4tmowAm•rt In alarttat3tstiuhT2023 TS2 6738$ Endowmentthjnds Iwntinuedl £OCN) FynJs Nknrtkner Ctrap8rs Fu E. M.vaugh2rFwii8 TIL Bonng Travd Fund R(¥Érv3n ECOr8 FL lTrBr¢rd F1[VEhIp Fu sentjPv. Orapers 8thkr5h* Fur College Enotrywnerf.F hD]ship[gll[r FUTKI 147 51 31 {431 155 L3S 14 16 15 612 1671 1.e4)1 1157 755 321 13 {281 f2.4ni s)J 59.25T 122 8,9 Fund$tl
Hertfortl Colkngts Forthe >aren 31 Juty 2023 FUND81>TTrIE¢LEGE DEIUS mÈrMty Dxban•dFw tyFRS 1C t rttJm to be apIeda5 is cdthwed 894I5% wdrn Tryesbnts In eTh dthe t 5y&aTS 67ce *•re ¢kti51 tIKeWll 5 oftre c4the Etl.
Forths •nd8d 31 thJly2D23 t9 PkULYSK8OF NEW ASSEWS 8EfYEEN FUIDS To[ lor 10,DSI 101664 lablth& IKLINJI l.L Totrl 1(M Tnthxoftrecol*tyYtal
Hortftd Coiiw Ntst•ts toth•financlal statom•nts Forthe year @nthd 31 2023 £1.W.kZ(IJD aW.E3j (Q1.t4J £7.001.R8.OJO £1ZiKI-£13.0 12457 13 £19.1. 379 £X,W1422,iX y £22,{1,( £23,l424.{ £24,1 4,00 £16.Wi427.( F,l.28.[o ).lffj1l.( 95A JY7.779 .74D JIZI ,l-£?3.Qt IY2 E4D.(D1-E41,0 E14.0 1.10 51,&95 E57.i¥j14. £S3.QD1.L £LIJ.tsJ1.£61.L %1.(jJ1.L LU75T T87.3 [.)1.£86.O OY.1.É10q.(th t107.l-£10,O 1178 lo713 I122m1.£1.C 117.076 121211
P&Jtos to the firrdrKlal Forthe yowenthtl 31 Jufy 20 PENSK4XTrWIES £eJJ 255*¥ JA& 15 knICf1215 11•Y
H¢rtt(d Colag Wotes tr> lh• fin•rt¢l•l sialernents For the yearèndAd 31 Juty2D23 AdIStUutratsrPer EfFxtofOSA r EftÉttori%¢rMn ai E2Ji 334
Hortlcfd Cdlo9 Not¢8 to th(tffitK8nctal statoThDts FortheyBar endAd 31 Juty 2023 3J22 ,4011 Arn) (4.159} lfftr&gsellLTea5¢ I1[KTSel1(taS¢ Irfe*tI[Dec(ea5eJ 11.331 Lknd £YJJo ÈFr4 73 RZubÈk 23B
Hertford Notvs to th?ffinanclal siatrin•i ForthF endpd 31 Juty 2023