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2022-06-30-accounts

MAGDALENE COLLEGE CAMBRIDGE

REPORTS AND ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2022

Registered Charity Number 1137542

MAGDALENE COLLEGE, CAMBRIDGE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2022

Contents Page
Fellowship 2
Principal Officers and Professional Advisers 6
Report of the Governing Body 7
Statement of Public Benefit 15
Statement of Internal Control 18
Responsibilities of the Governing Body 19
Independent Auditors’ Report to the Governing Body 20
Statement of Principal Accounting Policies 23
Consolidated Statement of Comprehensive Income and Expenditure 30
Statement of Changes in Reserves 31
Consolidated Balance Sheet 32
Consolidated Statement of Cash Flows 33
Notes to the Financial Statements 34

Page 1

MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP YEAR ENDED 30 JUNE 2022

FELLOWSHIP

Governing Body (Trustees of the charity)

Sir Christopher Greenwood, GBE, CMG, QC, MA, LLM Professor M A Carpenter, ScD (until 30 September 2021) J R Patterson, MA, PhD M E J Hughes, MA, PhD Professor T Spencer, MA, PhD (until 30 September 2022) Professor B J Burchell, MA and PhD (Warwick) S Martin, MA, PhD K Patel, MA, MSc and PhD (Essex) (until 30 September 2021) Professor T N Harper, MA, PhD Professor N G Jones, MA, LLM, PhD Professor H Babinsky, MA and PhD (Cranfield) Professor P Dupree, MA, PhD Professor S K F Stoddart, MA, PhD Professor T A Coombs, MA, PhD H Azérad, MA, PhD A L Hadida, MA, PhD Professor C S Watkins, MA, MPhil, PhD Professor A L Du Bois-Pedain, MJur (Oxon) S C Mentchen, MA S J Morris, BA (Newcastle), FCA, IPFA R M Burnstein, MB, BS, PhD G P Pearce, MA, PhD Professor C Brassett, MB, BChir, MChir, FRCS M J Waithe, MA (Leeds), PhD C D Lloyd, MA (Kent) R L Roebuck, BA, MEng, PhD Professor A K Bennison, BA, PhD (London) Professor L C Skinner, BSc, MPhil, PhD Professor E So, MEng, PhD, CEng W T Khaled, MA, PhD A Ercole, BA, MA, PhD, PG Dipl, MB BChir, FRCA T G Euser, PhD, MSc (Twente) J M Munns, MA (Durham), MPhil (Bristol), PhD, FRSA S A Bacallado, PhD Professor S Dubow, BA, DPhil (Oxon) Professor S J Eglen, DPhil N R Carroll, MA, MB, BChir J J Orr, PhD The Revd S Atkins, MA Professor P J Lane, MA, PhD M F Ahmed, MPhil, MSc, PhD (until 31 August 2021) A Meghji, MA, MPhil, PhD M C Skott, PhD (until 30 September 2022) A Mills, DipABRSM, MA, BCL (Oxon), Barrister at Law (Gray’s Inn) (from 1 September 2021) E Gallo, AB (Harvard), MPhil, DPhil (Oxon) (from 1 October 2021) S Ravenscroft, BTh (Wales), MA (Nottingham), PhD (from 1 October 2021) J Patterson, MA (London), PhD (Manchester) (from 1 September 2022) C Whiteley BA (York), MPhil (London), PhD (LSE) (from 1 September 2022)

Page 2

MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP (continued) YEAR ENDED 30 JUNE 2022

Emeritus Fellows

Professor P J Grubb, ScD R Hyam, LittD P E Reynolds, ScD His Honour C F Kolbert, MA, PhD Professor N Boyle, LittD, FBA Professor R J S Spence, MA, PhD Professor E Duffy, DD, FBA Professor N Rushton, MD Professor H A Chase, ScD, FREng Professor M A Carpenter, ScD (from 1 October 2021) K Patel, MA, MSc and PhD (Essex) (from 1 October 2021)

Research Fellows

J C Jarrett, PhD (until 30 September 2021) S Caputo, BA (Cardiff), MSc (Edinburgh) (until 30 September 2022) Y Glazer-Eytan, PhD A Baez-Ortega, PhD D Dunkelmann, BSc, MSc (Zurich), PhD (from 1 October 2021) P Asimov-Hofmann, AB (Brown), MSt (Oxon), PhD (from 1 February 2022)

Senior Research Fellows

P M Steele, BA, MPhil, PhD C N Spottiswoode, BSc, PhD (until 30 September 2021) Professor J R Raven, MA, PhD (until 30 September 2021) A P Coutts, BSc, MSc, PhD A Neumann, MA, PhD S L Caddy, PhD (until 30 September 2022) Professor F Aigbirhio, BSc, MA, DPhil, CChem, FRSC Professor D A S Fergusson OBE, MA (Glasgow), BD (Edinburgh), DPhil (Oxon), DD, FBA, FRSE (from 1 June 2022)

T Licence MA, MPhil, PhD, FHEA, FRHistS, FSA (from 1 September 2022)

Life Fellows

M D Billinge, MA, PhD Professor W R Cornish, Hon QC, LLD, FBA (deceased 8 January 2022) A R Thompson, MBE, MA, MPhil Professor T H Clutton-Brock, ScD, FRS S Halper, PhD Professor E H Cooper, LittD, FBA Professor T A J Cockerill, MA, MPhil (Leeds), PhD (Manchester) Professor E Rothschild, CMG, MA Professor J R Raven MA, PhD, LittD, FRA (from 1 October 2021)

Page 3

MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP (continued) YEAR ENDED 30 JUNE 2022

Bye-Fellows

O F R Haardt, PhD (until 30 September 2022) Y P G Poon, MSc (until 30 September 2021) E Karayiannides, MPhil (until 30 September 2021)

C Woodall, MA (until 30 September 2021)

F England, MEng (London), MRes (from 1 October 2021 until 30 September 2022) C Vassiliu, BA (Athens), MPhil (from 1 October 2021 until 30 September 2022) V Vitaliev, MA (Kharkiv), PhD (Moscow) (from 1 October 2021) M Hrebeniak, BA (London), PhD (London), MA (honorary) (from 1 January 2022)

Visiting Fellows

Professor C Casey MA, PhD (Dublin) (from 1 October 2021 until 30 September 2022) Professor C Brokaw, MA, PhD (Harvard) (from 4 January 2022 until 24 March 2022) Colonel H de Bretton-Gordon OBE, BSc (Reading) (from 17 April 2022 until 24 June 2022) Professor B Brents, BJ, MA, PhD (Missouri) (from 17 April 2022 until 24 June 2022)

Honorary Fellows

HRH the Duke of Gloucester, KG, GCVO, MA Professor Sir John Boardman, MA, FBA, Hon RA Professor Sir David Hopwood, MA, PhD, DSc (Glasgow), FRS A B Gascoigne, MA, FRSL (deceased 8 February 2022) Professor H H Vendler, AB, PhD (Harvard), Hon Litt D J C F-Simpson, CBE, MA, FRGS Sir Colin Corness, MA Professor Sir Richard Jolly, KCMG, MA, PhD (Yale) Professor Sir John Gurdon, PhD, Hon ScD, Hon DSc (Oxon), FRS D J H Murphy, MA Professor D C Clary, ScD, FRS The Rt Hon Lord Malloch Brown, KCMG, MA R W H Cripps AM The Rt Hon Lord (Igor) Judge, Kt, PC, MA, Hon LLD The Rt Hon Sir Andrew Morritt, PC, CVO, MA R H Vignoles, BA, BMus, ARCM, Hon RAM, Hon FRCM The Hon Yan Lung Wong, SC, MA, JP Khoon Hong Kuok, BA (Singapore) D D Robinson, CBE, MA and MA (Yale), FSA, DL Professor S Springman, CBE, PhD, FREng C I von Christierson, MA HRH Sultan Nazrin Shah, BA (Oxon), PhD (Harvard) L L Cardozo Kindersley, MBE Dame C A Duffy, DBE, BA (Liverpool) A Tennent, BA, MIB T Cripps, BA, MBA The Rt Revd & Rt Hon the Lord Williams of Oystermouth, PC, DD, Hon DCL (Oxford), FBA Professor the Lady Williams of Oystermouth, MA The Rt Hon Brenda Marjorie Hale, Baroness Hale of Richmond, DBE, PC, FBA M C Newell, BA The Very Revd Dr D M Hoyle, MBE, MA, PhD C B M Derham, MA M Moorman, MPhil (from 1 October 2021) A Schultz, MA (from 1 October 2021)

Page 4

MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP (continued) YEAR ENDED 30 JUNE 2022

Fellow-Commoners

R L Skelton, MA A I J Fitzsimons, Diplômée de l'ISIT (Paris) J J Hellyer Jones, MA, FRCO Sir Bradley Fried, MBA (Pennsylvania) (until 30 March 2022) N Raymont, BSc (Econ), FCA (until 30 June 2022) P J Marsh, MPhil, Honorary PhD (University of Central England) R V Chartener, AB (Princeton), MPhil, MBA (Harvard) C H L Foord, MAAT, Assoc CIPD A G Ritchie, QC, MA (until 8 November 2022) C V S Brasted-Pike, MA, MSci, PhD G H Walker, MA, LRAM, PGDip (RAM) (until 31 August 2022) H Critchlow, PhD S Ravenscroft, BTh (Wales), MA (Nottingham), PhD (until 30 September 2021) L Masuda-Nakagawa, PhD (Tokyo) F Schuery, MA A Thom, MA, PhD C N Spottiswoode, BSc, PhD (from 1 October 2021) J M Potter, BA (Oxon), (from 1 September 2022)

Page 5

MAGDALENE COLLEGE, CAMBRIDGE PRINCIPAL OFFICERS AND PROFESSIONAL ADVISERS YEAR ENDED 30 JUNE 2022

Address
Magdalene College
Cambridge
CB3 0AG
Officers
Master: Sir Christopher Greenwood, GBE, CMG, QC, MA, LLM
President: Dr M E Jane Hughes, MA, PhD (until 30 September 2021)
Professor Brendan J Burchell, MA & PhD (Warwick) (from 1 October 2021)
Senior Tutor: Dr Stuart Martin, MA, PhD
Senior Bursar: Mr Steven Morris, BA (Newcastle), FCA, IPFA
Development Director: Mrs Corinne Lloyd, MA (Kent)
Professional Advisers
Auditors: Peters Elworthy & Moore
Salisbury House
Station Road
Cambridge CB1 2LA
Bankers: Lloyds Bank
3 Sidney Street
Cambridge CB2 3HQ
Property Managers: Cheffins Commercial
(Commercial) Clifton House
1-2 Clifton Road
Cambridge CB1 7EA
Property Managers: Savills
(Agricultural) Olympic House
Doddington Road
Lincoln LN6 3SE
Securities Managers: Baillie Gifford & Co
Calton Square
1 Greenside Row
Edinburgh EH1 3AN
Solicitors: Ashtons Legal
Chequers House
77-81 Newmarket Road
Cambridge CB5 8EU

Page 6

MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY YEAR ENDED 30 JUNE 2022

The Governing Body of Magdalene College presents its Reports and Accounts for the year ended 30 June 2022.

STATUS

The College of Saint Mary Magdalene, one of 31 Colleges in the University of Cambridge, commonly called Magdalene College, was re-founded by Lord Audley of Walden in 1542. The 1542 Charter provides that the College is ‘ for the advancement of knowledge, arts, learning and virtue and for the advancement of moral studies in the University of Cambridge. ’ The College became a registered charity on 18 August 2010. The Charity Commission of England and Wales is therefore the principal regulator for the College.

The College is a legally independent corporation within the collegiate University of Cambridge. A system of University-wide committees exists to plan and discuss the joint affairs of the collegiate University.

AIMS AND OBJECTIVES

The Governing Body has adopted a Strategic Plan to determine the future direction and size of the College. This plan identifies the priorities to be addressed to maintain and enhance teaching provision and the College’s academic resources, and to provide appropriate residential and recreational amenities.

The College’s charitable purpose as a place of religion, education, learning and research is clearly reflected by objectives in the Strategic Plan:

GOVERNANCE

The Governing Body of the College comprises the Master and the Fellows (Classes A, B and C, if aged below 67 years) and they are de facto the trustees of the College. This body is constituted and regulated in accordance with the College Statutes (revised 1997) and is responsible for the strategic direction of the College, for its administration and for the management of its finances and assets. It meets at least seven times a year under the chairmanship of the Master. The Presidents of the Middle Common Room (MCR) and the Junior Common Room (JCR) attend for unreserved business.

The Governing Body acknowledges its responsibility to act with prudence and care and to ensure the College complies with relevant laws and regulations. The Governing Body elects all Fellows of the College. Information is given to new Fellows regarding the College and how it is governed.

The principal committees of the Governing Body include the:

Page 7

MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2022

As secretary to the Governing Body, the Senior Bursar maintains a register of interests for members of the Governing Body. Declarations of interest are standing items on the agendas of the Governing Body and its principal committees. The Governing Body has established Stipends and Remuneration Committees, with memberships which are independent from it, to review and to advise on the benefits appertaining to Fellows. This Committee met on two occasions during the financial year to review relevant policy proposals. The Stipends Committee has reviewed its own remit and then advised the Governing Body accordingly. In terms of the College’s pay policy, including that of senior management, a formal triennial review against comparative roles is undertaken to benchmark pay and subsequent recommendations appertaining to Fellows / College Officers are made to the Stipends and Remuneration Committees, which advise the Governing Body accordingly. Additional disclosure on the salaries of Fellows of the College who form the trustee body is given in the Notes to the accounts.

The Master is the chairman of the trustees and has a duty to promote the welfare of the College and to ensure the College maintains an appropriate learning environment for its members. The President, as a senior fellow, supports the interests of the fellowship and acts as the vice-master. The Senior Tutor has day-to-day responsibility for the admission, education and welfare of undergraduate and postgraduate students and supporting the research activities of the College. The Governing Body appoints Admissions Tutors to support the Senior Tutor in the selection of suitable students for admission to the College. The Senior Bursar has responsibility for the estates, finance and administration of the College.

The College appoints a Director of Studies for each undergraduate and provides small group teaching in addition to the teaching provided by the University. The College also provides a Tutor for each student and access to other forms of pastoral care, including a Chaplain (Dean of Chapel), Nurse and Counsellors. Together, the Dean and the Tutors have responsibility for maintaining standards of behaviour and good order in the College.

Members of the MCR and the JCR elect annually an executive committee to support and promote their welfare. The College makes grants to these student bodies, as well as to sports and cultural societies.

COVID-19 VIRUS: THE GLOBAL PANDEMIC

The Covid-19 virus continued to have a highly disruptive impact across the world during the first part of the financial year. Generally though, a global recovery period commenced in the autumn/winter 2021, although within the UK infection levels remained high throughout the spring and the early part of the summer 2022.

The University and the colleges have worked collaboratively since the start of the pandemic with joint planning and subsequent recovery streams. This has included sharing resources over student support, medical advice and scenario planning. The aim has been to protect and support the University’s students and to provide a fair means of assessment in the absence of a normal examination process. A comprehensive plan for reopening the University was formulated in close consultation with the City Council and local Public Health agencies. The University and the colleges together established a comprehensive weekly testing programme for resident students as a key tool to identify and prevent infections during the University terms. Participation rates amongst the student population were high and generally students have acted in a highly responsible manner. The College established a senior officers’ ‘Gold’ team from the outset of the pandemic to respond in a rapid manner to the issues arising from the pandemic.

Although the University Covid testing regime continued for the Michaelmas Term 2021 and into the Lent Term 2022 in order to manage student infections, the scheme ceased Easter 2022 in line with the closure of government related testing infrastructure.

The pandemic has had a significant financial impact on the College. This included lower commercial rental income, with the value of the College’s commercial property portfolio being adversely affected but has substantially recovered from

Page 8

MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2022

the low point in June 2020. Finally, revenues from conferences during the summers of 2020 and 2021 have been minimal and are likely to take some time to recover to pre-pandemic levels.

PROGRESS MADE DURING THE YEAR

The pandemic has had a highly disruptive influence on students and academics and College life in general. The College has had to adjust its plans and future intentions to direct its attention to the core activities of supporting its students. Financial support funds have not been reduced and indeed have been increased to help to support our students.

Students have returned to residence following the heights of the pandemic and have been resident throughout the academic year and the College’s community social life has rebounded in a positive manner.

The College is always striving to improve its own academic standards and is active in promoting the wider collegiate University’s standing in terms of teaching and research and the position of the colleges within it. The College aims to build upon its existing academic strengths by recruiting Fellows who are outstanding in their field of study and by admitting talented students.

The Master, Sir Christopher Greenwood, took up his office in September 2020 and has since been leading the College through this difficult period and encouraging the College community to re-establish itself and to rebuild upon relationships.

The New Library became operational in February 2021 although occupancy was reduced initially due to measures relating to reducing the risk of Covid-19 infections. Normal capacity levels have been in place for the 2021-22 academic year. Students of the College have found the New Library to be a highly effective and enjoyable place to study. The new Gallery is housed within the New Library building and the first exhibitions commenced during the year, all of which have proven to be highly successful. An on-going programme of three exhibitions per year is planned.

The success of the Future Foundations fundraising campaign has made the New Library possible and, thanks to extremely generous support from donors, the campaign has in fact exceeded the College’s own expectations. The College has now exceeded the £25m total target when cash donations and future pledges are taken into account.

As the UK has followed a recovery path from the pandemic, structural changes to the labour market, coupled with peak demand from employers, has led to a shortage of labour and high levels of vacancies. This labour shortage has been acute in the greater Cambridge area. This has meant significant challenges with recruitment in many departments of the College but particularly with hospitality and professional services. The College has responded with pay reviews and some bonus payments but the imbalance in the labour market remains a concern.

Inflation pressures coupled with the Ukraine war have led to another crisis of energy costs and supply, and therefore, difficult economic consequences for individuals and governments alike. This has impacted adversely on financial markets and economic growth. The inflationary experience for the College has been immediate with employment and non-pay costs increasing.

Page 9

MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2022

FINANCIAL REVIEW

Scope of Financial Statements

The financial statements include the accounts of Magdalene College and its subsidiary undertaking.

Sources of Funding

The principal sources of income of the College are:

Results for the Year

The financial results for the year are given as follows:

Total Income
Total Expenditure
Surplus before investment gains or changes to pension schemes
Gain on investments
Actuarial gain on pensions
Total Comprehensive Income		 2022
£000
12,899
(11,690)
1,209
3
510
1,722		 2021
£000
% Change
10,561
+22.1%
(9,526)
+22.7%
1,035
+16.8%
9,445
-99.9%
653
-21.9%
11,133
-84.5%

The College deems it prudent to plan for a modest recurrent surplus to provide stability and to allow for new funds for reinvestment.

Income

Overall income (before investment gains and actuarial pension changes) has increased by 22.1% when compared to the previous year. This was due to a partial recovery in member income for accommodation and catering following the heights of the pandemic, and higher 2021-22 student admissions. In addition, donations related to student support and research increased in the year. Market value losses on securities were offset by gains in commercial property values.

Income from academic fees was higher than the previous year as more postgraduate students were admitted. This increase is partially offset by a reduction in research activity and eligible students for Cambridge Bursary Scheme support.

Income from College-provided accommodation and catering was £3,165k (£1,861k for 2020-21), an increase of 70.1% on last year. Whilst college member accommodation income is now largely comparable to pre-pandemic levels, member catering income has been slower to recover from the impact of Covid. Conference revenues, having been decimated due to the pandemic, are still at nominal levels. The College participated in the government’s job retention scheme, which ceased September 2021, and received £21k during this financial year.

Investment income increased by 5.7% to £3,726k (£3,526k previous year). Despite turbulent financial markets in the second half of the year actual income remained constant at 2020-21 levels. The spending rate on a total return basis was reduced in 2020 and remained at 3% for 2021-22. Rental income from the commercial property estate substantially increased with good rental collection and few voids.

Page 10

MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2022

Total donation income was £2,616k (£1,657k 2020-21), reflecting an increase in student support related donations and a large research related gift.

Expenditure

Expenditure on education increased to £5,049k (£4,454k previous year), which compares to £3,016k received (£2,773k previous year) directly from academic fees, providing a calculated deficit on educational activity of £2,033k (£1,681k previous year). This derives from a return to in-person teaching and tutorial related costs, including the New Library facility. Expenditure on education accounts for 43.2% (previous year 46.8%) of total expenditure.

Expenditure on College-provided accommodation and catering increased to £4,813k (£4,119k previous year) again due to increased activity in the year following Covid-19 restrictions being lifted. Other operating costs related to accommodation and catering and conferences increased by over 50% in line with the increase in students in residence and associated catering activity.

Total staffing costs remained static amounting to £4,264k (£4,247k previous year) or 36.5% of total costs (44.6% the previous year). This reflects the continued large-scale disruption by the pandemic on some normal college site-based activities and the time required to scale up some services. In addition, the tight labour market, evident in the second half of the year, significantly affected staff retention and recruitment. The College followed the general pay award in line with the higher education sector for its employees, but with an uplift given to staff on lower pay rates in accordance with the College’s policy to match the ‘Real Living Wage’. During the year, the College also paid two discretionary bonuses to staff in recognition of the growing cost of living.

The Governing Body remains concerned about the long-term costs of providing defined benefit pensions, and whilst it has taken steps to try to limit future liabilities by ceasing to offer a defined benefit scheme to new non-academic staff, many current employees participate in a defined benefit salary scheme . There has been an increase in the FRS 102 pension deficit, £1,969k (£1,878k 2020-21), with the deficits for CCFPS decreasing and USS scheme increasing. The USS pension provision movement is included in Other Expenditure.

Depreciation costs for operational buildings increased to £1,642k (£1,350k previous year) following the completion and the bringing into operation of the New Library building.

College net assets increased by £1.7m to £197.1m at the end of the year. Endowment values marginally increased despite falling financial markets due to an increase in commercial property values offsetting losses in security assets.

Capital Expenditure and Maintenance

The College's operational assets, the largest asset class of the College, remain a financial pressure for the College. There was no capital expenditure (separate from building maintenance) in the year while the programme concentrated on significant maintenance projects. There has a been a back log of maintenance and a loss of momentum due to the pandemic. The College commissions a rolling condition survey of its operational estate which informs its forwardlooking five-year maintenance plan. The maintenance programme is designed to maintain and improve the estate and additional resources have been allocated to it in recent years, recognising the need to increase investment in the longterm maintenance of its operational estate. The programme has had to be reviewed and partially restored as the College aims to recover from the pandemic.

Investment Policy and Performance

The College manages its investments in securities or its financial assets and directly owned property to produce the highest return consistent with the preservation of capital value in real terms for the long term and given the associated risks. The principal responsibility of the Governing Body in investing the College's endowment is to ensure the real value of the endowment is maintained after spending, consistent with the risk/return profile adopted and within a suitably diversified portfolio. The Governing Body expects, within the scope of this fiduciary duty, its fund managers to engage actively with companies to promote and support acceptable standards of practice in respect of their business activities and how they impact on their employees, the environment, and the communities in which they operate. The Investments Committee undertakes an ongoing review of its responsible investment policy and made a substantive review of its policy during the year. The Governing Body approved a Statement of Investment Principles, which clearly

Page 11

MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2022

sets out the investment objectives, risk appetite and responsible investment policy, during the year. The purpose of the endowment is to preserve the real value after making distributions and inflation and to provide a steady reliable cashflow to support the college. The College expects its fund managers to integrate responsible investment approach and to align with the principles of the UN Compact.

The College holds a securities-based portfolio which was valued at £50.0m (£51.5m previous year). Its principal fund manager is Baillie Gifford (managing £44.5m in 2021-22 and £46.3m previous year). The College has a duty to maximise return from its investments, but it does so in a manner to be consistent with the College’s charitable mission. The College also has direct property and modest agricultural land holdings (£43.9m in 2021-22). The direct property, which is managed by Cheffins, is held as a long-term strategic asset, with the policy of maximising yield, whilst the agricultural land is managed by Savills.

The Investments Committee, for its securities portfolio, agreed to retain the total return policy using a 3.0% spending rule and it resulted in a drawdown (from capital and income) of £1,207k (£1,109k in 2020-21). The unapplied total return fund provides a contingency sum in the event of falling values in financial markets and permits drawn down in adverse market conditions. The Investments Committee did, though, agree to restore the future spending rate back to 3.25%.

Given the impact of difficult financial markets due to growing inflationary pressures and consequential monetary tightening, and the impact of the Russian invasion of Ukraine, the College has been generally content with the performance of the endowment. The capital losses in financial markets leading to negative returns with the College’s equity related investments have been cancelled out by the strong returns from directly (and indirectly) held property. Directly held property returned 13% in the year, giving an annualised 5-year average total return of 6.9%. the Charities Property Fund returned 23.5% for the same 12-month period. The Baillie Gifford funds have had mixed fortunes and both producing negative returns in these challenging markets. The long equity responsible fund returned -1.5%, a strong relative outperformance against its benchmark of -3.7% for the year to June 2022. The smaller holding in the multi asset fund fared less well, returning -12.1% against an inflation plus benchmark of 3.9%. The Investments Committee has already commenced a review of the possible alternative non-Baillie Gifford funds which might replace the multi asset funds.

The College holds an investment of c.£5m in the University’s endowment fund but performance information for the year to June 2022 is unavailable until later in the year.

Donations and Fundraising

Magdalene’s primary fundraising efforts are directed at raising monies through major donations as well as by regular giving, and to add to the College’s endowment. Key objectives for the College include teaching, research, and student support. In 2017 an ambitious fundraising campaign was launched to raise £25m over a five-year period. The central themes being student support; the New Library; the restoration of the Pepys Library; and an improvement of the fabric of the College Estate. The campaign officially ended in July 2022 having exceeded the target and achieving a total over £29m on funds raised. The College is truly grateful for the generous response, enthusiasm for and support of the campaign.

The ongoing support of our Members, friends and the Fellowship is particularly welcome and appreciated during these trying economic times. Over the course of 2021-22, donations to the College exceeded expectations with the focus on student support resonating with donors. The College is grateful to its members and supporters. The costs of fundraising efforts were lower at £209k compared with £240k for 2020-21.

The College decided to defer its plans to fundraise for the restoration of the Pepys building over the course of the pandemic to allow time to review plans and project costs. This review, particularly in the light of growing inflationary pressures, is ongoing.

The College is registered with the Fundraising Regulator and continues to develop a shared understanding and agreement for activities concerning alumni, be it communications, attendance of events and use of data. The College has a Data Protection Statement which governs the use of any personal data held and the College insists alumni grant their consent in holding personal data. The College did not engage professional fundraisers during the year and does not seek to raise funds from members of the public.

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MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2022

Reserves, Endowment Funds and Associated Policy

Total College reserves and funds amounted to £197.1m. Within the College's endowment funds there are almost 100 trust funds supporting the College in achieving its aims.

These reserves are represented by the College’s operational estate and to a large extent, the permanent endowment assets and, are therefore unavailable as income funds to be spent. Collectively the College maintains its free revenue reserves and its earmarked designated reserves, after taking account of the pension deficit. These are liquid unrestricted funds. The Governing Body considers it prudent to hold sufficient unrestricted reserves and appropriate earmarked reserves in the event of major variations to the College’s income and expenditure and has concluded that its general unrestricted free reserves should be 20% of annual income and that its building reserve should represent 1% of the insurable value of the operational estate. Together this amounts to £4.1m.

Unrestricted Reserves shown in the Balance sheet
Of which constitute fixed and heritage assets
Less pension provisions
Leaving unrestricted liquid reserves
Target Free Reserves in accordance with College Policy		 £117.7m
(£106.8m)
(£ 2.0m)

£ 8.9m
£ 4.1m

After taking these specific funds into account and a specific building repairs fund for its commercial and operational property, the College has a sufficient level of general funds available as a contingency measure to support its operations.

Cash Flow and Treasury Management

The College’s treasury management policy requires cash deposits to be spread across a range of counterparties, all of which must be at least Fitch A credit rated. Net cash funds increased by £2,053k, from £4,295k to £6,348k over the year. Cash levels remain elevated to maintain liquidity given the uncertainty of inflationary pressures and a significant amount is pending long term investment into the endowment. The College has plans to reduce cash levels in the early part of the next financial year.

Going Concern

A statement in respect of the College and its financial sustainability is given in the Statement of Principal Accounting Policies and explains that the financial statements have been prepared on a going concern basis. The College plans ahead, preparing detailed budgets looking three years ahead, and has undertaken some financial scenario planning, particularly in relation to differing assumptions on inflation forecasts. The College also holds a healthy level of liquid funds to meet unexpected demands or changes in income streams.

PRINCIPAL RISKS

The College maintains a Major Risks Register that identifies what it considers the major risks to which the College is exposed and their assessed impact and probability of occurrence; this was reviewed and updated during the year. As outlined in the Governing Body’s statement on Internal Controls the risk register is reviewed regularly by the principal College Officers and the Finance & General Purposes Committee, and then final consideration by the Governing Body. As far as is practical the College then takes additional measures to mitigate key risks and where appropriate insurance cover is put in place. Nevertheless, the College is exposed to a variety of significant risks. Presently the known principal risks include:

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MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2022

The College through its own financial planning and operational management aims to mitigate the impact or set aside resources in the event of such risks taking place. Across the collegiate university the University and the colleges work collectively to identify and manage common risks and share steps to manage known risks.

FINANCIAL OUTLOOK AND PLANS FOR THE FUTURE

The impact of high levels of inflation coupled with the adverse effects of Russia’s invasion of Ukraine has led to another crisis. A crisis of living costs as inflation balloons, and a crisis of energy supply and costs. This in turn is stunting confidence and economic growth. Financial markets have re-rated many securities resulting in double-digit negative returns over the first half of 2022. Governments of developed countries are responding with substantial fiscal support packages while central banks are raising interest rates to dampen future inflation.

The College has set a deficit budget for 2022-23 to minimise the impact of rapidly increasing expenditure on college life and operations. In the short-term income growth cannot match expenditure increases. The College has good levels of liquidity to support higher expenditure although meeting the 2022-23 budget is likely to be a challenge.

To-date the endowment has been reasonably resilient to the economic environment, but careful monitoring will be required.

A review of the project to restore the Pepys building is currently being undertaken together with an assessment of the fund-raising potential.

Student welfare and support is a strategic priority for the collegiate university and plans are underway to recruit to a welfare officer to coordinate the College’s services in support of its students.

Although Covid-19 is no longer high-profile, infection levels are expected to increase again over the winter period and contingency plans are in place to instigate local measures to manage local outbreaks if necessary.

Approved by the Governing Body on 13 October 2022

C J Greenwood S J Morris Master Senior Bursar

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PUBLIC BENEFIT YEAR ENDED 30 JUNE 2022

The Governing Body is satisfied that the activities as described in these reports and accounts meet the public benefit requirements of a registered charity and to its regulator the Charity Commission.

Objects

By maintaining an academic community of the Master, Fellows, Scholars and other students the College is fulfilling its charitable objects as a place of religion, education, learning and research within the University of Cambridge.

Education

The College provides an education for some 390 (2021: 391) undergraduate and 171 (2021: 149) postgraduate feepaying students which is recognised internationally as being of the highest standard. The education develops students intellectually and advances their leadership qualities and interpersonal skills, and so prepares them to play full and effective roles in society. In particular, the College provides:

Research

In the same way the College advances knowledge and learning through:

Libraries

The College Library provides a valuable resource for students and Fellows of the College. The College also maintains an Old Library for its members and members of other Colleges and the University of Cambridge more widely, and for external scholars and researchers.

The Pepys Library, which is a collection of international significance, provides an educational resource for academics, allows access to organised tours by local children and institutions, and is regularly open for visits by the general public.

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PUBLIC BENEFIT (continued) YEAR ENDED 30 JUNE 2022

Beneficiaries

The resident members of the College, both students and academic Fellows/staff, are the primary beneficiaries and are directly engaged in education, learning or research.

However, beneficiaries also include: students and academic staff from other Colleges in Cambridge and the University of Cambridge more widely, visiting academics from other higher education institutions, and alumni of the College who have an opportunity to attend educational events at the College or use its academic facilities and take meals at the common table. The general public are also able to attend various educational activities in the College such as Open Garden exhibitions, and the College’s educational festivals. Subject to certain reasonable restrictions, the grounds of the College are open to the general public on most days of the year without charge.

Admissions

The College admits as students those who have the highest potential for benefiting from the education provided by the College and the University and recruits as Fellows and academic staff those who are able to contribute most to the academic excellence of the College, regardless of their financial, social, religious or ethnic background:

The focus of the College is strongly academic and students need to satisfy high academic entry requirements.

The College charges the following fees:

Student Support

In order to assist undergraduates entitled to student support the College provides, through a scheme operated in common with the University and other Colleges (the Cambridge Bursary Scheme), bursary support for those of limited financial means. (For the academic year 2021-22, the number of awards made was 69, out of a Home/EU undergraduate population of 298; 44 of the awards were at the maximum value of £3,500; and the average value of the awards was £3,031.) The scheme is approved by the Office of Fair Access and provides benefits at a substantially higher level than the minimum OFFA requirement. Supplementing the Cambridge Bursary Scheme, the College is committed to raising funds to award an enhanced bursary to every undergraduate eligible for the scheme’s maximum £3,500 award. During 2021-22 the College was able to support 40 undergraduate students through this enhanced bursary scheme and a further 25 second and third year undergraduates were assisted through the ‘top-up’ bursary trial scheme.

To support postgraduate students, the College provides substantial financial support. This includes several scholarships to fund fees and living costs and ‘top-up’ to fill shortfalls in students’ funding packages. The College has also established a Postgraduate Research Fund to assist postgraduates with expenses associated with research conferences and activities, usually in conjunction with the University. Awards are based upon academic criteria as well as the financial position of students. During the year the College provided financial assistance amounting to £406k from these schemes.

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PUBLIC BENEFIT (continued) YEAR ENDED 30 JUNE 2022

The College also offers support to all students through a grant scheme to assist with academic materials, supporting the costs of related short courses (e.g. language studies), and attendance at conferences. These awards are given following an evaluation of the academic relevance and the financial means of the student. The College provides a range of annual travel awards to provide opportunities to travel to complement academic study however, due to the pandemic travel and vacation study grants were more limited. Total travel awards made in 2021-22 were £9.9k

The Governing Body also approves annual prizes and scholarships for undergraduates obtaining outstanding examination success. In total £25.7k of scholarships and awards were granted to 119 students during the year.

Finally, the College operates a hardship scheme, which also partially contributes to the cost of the Cambridge Bursary Scheme, for all students in financial hardship and is actively campaigning to raise additional funds from its members. Awards are assessed by the student’s Tutor and are based upon the specific financial situation of the student. The combined costs for these financial awards were £24.3k for the year.

Access

To raise educational aspiration and attract outstanding applicants who might not otherwise have considered applying the College operates an outreach programme. This programme includes an extensive programme of visits to schools, annual outreach events outside College which schools are invited to attend, visits by schools to the College, open days, and admissions symposia for teachers, as well as guidance and information on the College website for prospective applicants.

In the year College Fellows, staff and existing students supported the access programme of events which led to contact with a number of prospective students. The College holds a series of outreach events each year however, due to the pandemic these activities were restricted. In total the College spent £13.4k during the year directly on outreach programmes. The College reintroduced in-person outreach and residential events during the year but on a more limited scale than pre-pandemic.

Religion

The College carries forward the tradition, continuous since its foundation, of being a place of spiritual and ethical reflection on the Christian faith and its implications for the individual and society. In particular, the College:

There is no geographical, age or religious restriction on who may attend Chapel in the College and in practice those attending are highly varied and include those who do not follow the Christian faith. The pastoral services of the clergy of the College are available to all members of the College whatever their faith traditions or none.

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF INTERNAL CONTROL YEAR ENDED 30 JUNE 2022

The Governing Body is responsible for maintaining a sound system of internal control that supports the achievement of policies, aims and objectives, while safeguarding the public and other funds and assets for which the Governing Body is responsible, in accordance with the College’s Statutes, the requirements of the Charity Commission and the Education Memorandum with the University of Cambridge.

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

The system of internal control is designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. The process was in place for the year ended 30 June 2022 and up to the date of approval of the financial statements.

The Governing Body is responsible for reviewing the effectiveness of the system of internal control. The following processes have been established:

The Governing Body’s review of the effectiveness of the system of internal control is informed by the work and advice of College Officers and Heads of Department, who have operational responsibility for the maintenance and development of the internal control system.

The Governing Body’s review of the effectiveness of the system of internal control is also informed by the work of the external auditors, through their comments in the management letter and other reports.

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MAGDALENE COLLEGE, CAMBRIDGE RESPONSIBILITIES OF THE GOVERNING BODY YEAR ENDED 30 JUNE 2022

The Governing Body is responsible for preparing the Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The College’s Statutes and the Statutes and Ordinances of the University of Cambridge require the Governing Body to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the College and of the surplus or deficit of the College for that period. In preparing these financial statements, the Governing Body is required to:

The Governing Body is responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the College and enable them to ensure that the financial statements comply with the Statutes of the University of Cambridge. They are also responsible for safeguarding the assets of the College and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Governing Body is responsible for the maintenance and integrity of the corporate and financial information included on the College’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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MAGDALENE COLLEGE, CAMBRIDGE INDEPENDENT AUDITORS’ REPORT TO THE GOVERNING BODY YEAR ENDED 30 JUNE 2022

Opinion

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

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The Governing Body is responsible for the other information. The other information comprises the information included in the Report of the Governing Body other than the financial statements and our auditors’ report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

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MAGDALENE COLLEGE, CAMBRIDGE INDEPENDENT AUDITORS’ REPORT TO THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2022

Opinion on other matters prescribed by the Statutes of the University of Cambridge

In our opinion based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Governing Body.

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

Responsibilities of the Governing Body

As explained more fully in the responsibilities of the Governing Body statement set out on page 19, the Governing Body is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Governing Body determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

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MAGDALENE COLLEGE, CAMBRIDGE INDEPENDENT AUDITORS’ REPORT TO THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2022

legislation. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items;

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

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

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

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

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

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

Use of our report

This report is made solely to the College trustees, as a body, in accordance with College’s statutes, the Statutes of the University of Cambridge and the Charities Act 2011. Our audit work has been undertaken so that we might state to the Governing Body those matters we are required to state to them in an Auditors’ Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the College and the College’s Governing Body as a body, for our audit work, for this report, or for the opinions we have formed.

PETERS ELWORTHY & MOORE

Chartered Accountants and Statutory Auditors Salisbury House, Station Road, Cambridge CB1 2LA

14 October 2022

Peters Elworthy & Moore is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES YEAR ENDED 30 JUNE 2022

Basis of preparation

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

The Consolidated Statement of Comprehensive Income and Expenditure includes activity analysis in order to demonstrate that all fee income is spent for educational purposes. The analysis required by the SORP is set out in note 6.

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

Going concern

The financial statements have been prepared on a going concern basis. The College has prepared forecasts beyond the 30 June 2022 year end up to financial year end 2025 using three different scenarios as part of a financial planning exercise. The College has also set a detailed budget plan for the 2022-23 financial year and an outline budgets up to financial year end 2025. This financial planning work has included an analysis of the College’s unrestricted liquid resources, and together these financial plans, demonstrate that the College has sufficient resources to meet liabilities as they fall due for a period of no less than 12 months from the date these financial statements are approved. The Governing Body, as the trustee body of the College, considers preparation of these financial statements using a going concern basis to be appropriate.

Basis of accounting

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of investment assets and certain operational land and buildings at deemed cost.

Basis of consolidation

The Consolidated Financial Statements include the College and its subsidiary undertaking, Cloverleaf Limited. Intragroup transactions are eliminated upon consolidation. The activities of student societies have not been consolidated. A separate balance sheet and related notes for the College only are not included because Cloverleaf Limited is a design and build company and therefore the balance sheet of the College would not be materially different to the one included in these accounts. Some details of the subsidiary undertaking are given in note 26.

Recognition of income

Academic fees

Academic fees are recognised in the period to which they relate and include all fees chargeable to students or their sponsors. The costs of any fees waived or written off by the College are included as expenditure.

Restricted research grant income

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

Donations and endowments

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

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

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2022

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

  1. Restricted donations – the donor has specified that the donation must be used for a particular objective.

  2. Unrestricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream for the general benefit of the College.

  3. Restricted expendable endowments – the donor has specified a particular objective and the College can convert the donated sum into income.

  4. Restricted permanent endowments – the donor has specified that the fund is to be permanently invested to generate an income stream to be applied to a particular objective.

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

Total return

The College invests its securities investment portfolio and allocates a proportion of the related earnings and capital appreciation to the income and expenditure account in accordance with the total return investment concept. The allocation to income is determined by a spending rule, currently 3.0%, which is designed to stabilise annual spending levels from the endowment. The income transferred to the consolidated Statement of Comprehensive Income and Expenditure on this total return basis is calculated by a formula that uses the weighted average value of the College’s securities portfolio over a three-year period up to the commencement of the current accounting year. Details are given in note 3.

Investment income and change in value of investment assets

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

Other income

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

Cambridge Bursary Scheme

In 2021-22, payment of the Cambridge Bursaries to eligible students was made directly by the Student Loans Company (SLC). As a consequence, the College reimbursed the SLC for the full amount paid to their eligible students and the College subsequently received a contribution from the University of Cambridge towards this payment.

The net payment of £115k is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows:

Income (see note 1): £98k Expenditure: £213k

Pension schemes

The College participates in the Universities Superannuation Scheme. With effect from 1 October 2016, the scheme changed from a defined benefit only pension scheme to a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee-administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a schemewide contribution rate is set. The College is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS102 “Employee benefits”, the College therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme. Since the College has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the College recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and therefore an expense is recognised.

The College also contributes to the Cambridge Colleges Federated Pension Scheme, which is a similar defined benefit pension scheme. Unlike the Universities Superannuation Scheme, this scheme has surpluses and deficits directly

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2022

attributable to individual Colleges. Pension costs are accounted for over the period during which the College benefits from the employees’ services.

Because of the mutual nature of the Church of England Funded Pension Scheme, the College is unable to identify its share of the underlying assets and liabilities of each scheme on a consistent and reasonable basis and therefore accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the Statement of Comprehensive Income and Expenditure represents the contributions payable to the scheme in respect of the accounting period and expenses accrued in that year, plus any impact of deficit contributions. Since the College has entered into a recovery plan that determines how each employer within the scheme will fund the overall deficit, the College recognises a liability for the contributions payable that arise from the agreement to the extent that they relate to the deficit and the resulting expense in the Statement of Comprehensive Income and Expenditure in accordance with Section 28 of FRS 102.

The College offers a defined contribution pension scheme for non-academic staff. For staff employed before 1 April 2014 this was the Cambridge Colleges Group Pension Scheme. For staff employed after that date it is the NOW: Pensions Scheme. The assets of both those defined contribution schemes are held separately from those of the College. The annual contributions payable are charged to the Statement of Comprehensive Income and Expenditure.

Tangible fixed assets

Land and buildings

Fixed assets are stated at deemed cost less accumulated depreciation and accumulated impairment losses.

Costs incurred in relation to land and buildings after initial purchase or construction, and prior to valuation, are capitalised to the extent that they increase the expected future benefits to the College.

Freehold land is not depreciated as it is considered to have an indefinite useful life. Freehold operational buildings are depreciated on a straight line basis over their expected useful lives as follows:

the structure between 41 and 100 years

the mechanical and electrical services between 10 and 35 years

Buildings under the course of construction are valued at cost, based on the value of architects’ certificates and any other direct costs incurred. They are not depreciated until they are brought into use. The cost of additions to operational property shown in the balance sheet includes the cost of land.

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

Maintenance of premises

The College has a five year rolling maintenance plan which is reviewed on an annual basis. The cost of routine maintenance is shown in the consolidated Statement of Comprehensive Income and Expenditure as it is incurred. The cost of major refurbishment and maintenance which restores or improves value is capitalised and depreciated over the expected useful economic life of the asset concerned. The College also sets aside sums periodically to meet future maintenance costs, these being disclosed within unrestricted reserves.

Equipment

Equipment costing less than £5,000 per individual item or group of related items is written off in the year of purchase. All other equipment is capitalised and depreciated over their expected useful life as follows:

Furniture and equipment 10 years Energy regeneration 20 years Library books 15 years Information technology 3 or 5 years Catering & conference equipment 5, 10 or 20 years

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2022

Where equipment is acquired with the aid of specific bequests or donations it is capitalised and depreciated. The related benefactions are credited to income in the year it arises.

Heritage assets

The College holds and conserves two book collections which are of historical and cultural importance. The majority of assets held in the College’s collections were acquired before 1st July 1999 and, because reliable estimates of cost or valuation are not available for these on a cost-benefit basis, they have not been capitalised. During the year ended 30 June 2022, the College was gifted two collections of books and manuscripts of cultural importance. The College commissioned an expert valuation of the collections and as such the assets have been capitalised and this has been taken as the deemed cost. Heritage assets are not depreciated since their long economic life and high residual value mean that any depreciation would not be material.

Investments

Securities

Securities are shown at their fair value on 30 June each year, except for investments in the subsidiary undertakings which are stated in the College’s balance sheet at cost and eliminated on consolidation.

Direct property

Investment properties are included at fair valuation and the aggregate surplus or deficit is transferred to Unrestricted Reserves. A formal valuation is performed at least every 5 years. For commercial property holdings, a formal valuation is currently undertaken every year and this year was carried out by Cheffins, Chartered Surveyors, as at 30 June 2022. The last formal valuation for agricultural land was carried out by FPD Savills as at 30 June 2018.

Stocks

Stocks are valued at the lower of cost and net realisable value.

Employment benefits

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

Provisions

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

Contingent liabilities and assets

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

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

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

Financial instruments

The College has elected to adopt Sections 11 and 12 of FRS 102 in respect of the recognition, measurement and disclosure of financial instruments. Financial assets and liabilities are recognised when the College becomes party

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2022

to the contractual provision of the instrument and they are classified according to the substance of the contractual arrangements entered into.

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

Financial assets

Basic financial assets include trade and other receivables, cash and cash equivalents and investments in commercial paper (i.e. deposits and bonds). These assets are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest rate method. Financial assets are assessed for indicators of impairment at each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets carried at amortised cost the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows, discounted at the asset’s original effective interest rate.

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

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

Financial Liabilities

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

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

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

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

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

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

Page 27

MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2022

Foreign currency translation

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

Taxation

The College is a registered charity (number 1138143) and also a charity within the meaning of section 467 of the corporation Tax Act 2010. Accordingly, the College is exempt from taxation in respect to income or capital gains received within the categories covered by Sections 478 to 488 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes. The College receives no similar exemption in respect of the Value Added Tax.

Contribution under Statute G, II

The College is liable to be assessed for Contribution under the provisions of Statute G,II of the University of Cambridge. Contribution is used to fund grants to colleges from the Colleges Fund. The College may from time to time be eligible for such grants. The liability for the year is as advised to the College by the University based on an assessable amount derived from the value of the College’s assets as at the end of the previous financial year.

Reserves

Reserves are allocated between restricted and unrestricted reserves. Endowment reserves include balances which, in respect of endowment to the College, are held as permanent funds, which the College must hold in perpetuity. Restricted reserves include balances in respect of which the donor has designated a specific purpose and therefore the College is restricted in the use of these funds.

Critical accounting estimates and judgements

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

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

Income recognition

Judgement is applied in determining the value and timing of certain income items to be recognised in the accounts. This includes determining when performance related conditions have been met and determining the appropriate recognition timing for donations, bequests and legacies. In general, the latter are recognised when at the probate stage.

Useful lives of property, plant and equipment

Property, plant and equipment represent a significant proportion of the College’s total assets. Therefore, the estimated useful lives can have a significant impact on the depreciation charged and the College’s reported performance. Useful lives are determined at the time the asset is acquired and reviewed regularly for appropriateness. The lives are based on historical experiences with similar assets, professional advice and anticipation of future events. Details of the carrying values of property, plant and equipment are shown in note 8a.

Investment property

Properties are revalued to their fair value at the reporting date by the College’s Property Agent, Cheffins. Any valuation is based on the assumptions and judgements which are influenced by a variety of factors including market and other economic changes.

Page 28

MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2022

Pensions

FRS102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as USS. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense in profit or loss in accordance with section 28 of FRS 102. The Governing Body is satisfied that the scheme provided by USS and the Church of England Funded Pension Scheme meet the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the funding plan in existence at the date of approving the financial statements.

All other accounting judgements and estimates are detailed under the appropriate accounting policy.

Page 29

MAGDALENE COLLEGE, CAMBRIDGE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE YEAR ENDED 30 JUNE 2022

Note
Income
Academic fees and charges
1
Accommodation, catering and conferences
2
Investment income
3
Endowment return transferred
3
Other income
Total income before donations and
endowments
Donations
New endowments
Other donations for assets
Total income
Expenditure
Education
4
Accommodation, catering and conferences
5
Investment management costs
3
Other expenditure
Contribution under Statute G, II
Total expenditure
6
Surplus/(deficit) before other gains / losses
Gain/(loss) on investments
Surplus/(deficit) for the year
Other comprehensive income
Actuarial gain in respect of pension schemes
15
Total comprehensive income for the year
Unrestricted
£000
3,156
3,165
2,484
390
113
9,308
419
-
69
9,796
4,003
4,805
66
1,428
16
10,318
(522)
(113)
(635)
510
125		 2022
Restricted
£000
Endowment
£000


98
-
-
-
10
1,232
817
(1,207)
25
-
950
25
1,572
-
-
292
264
-
2,786
317


1,046
-
8
-
-
223
95
-
-
-

1,149
223
1,637
94
(173)
289
1,464
383


-
-
1,464
383		 Total
£000

3,254
3,165
3,726
-
138		 Unrestricted
£000
2,984
1,861
2,282
345
363
7,835
439
-
10
8,284
3,458
4,104
61
689
14

8,326
(42)
274
232
653
885		 2021
Restricted
£000
Endowment
£000


145
-
-
-
8
1,236
764
(1,109)
25
-
942
127
492
-
-
290
426
-
1,860
417


996
-
15
-
-
164
25
-
-
-

1,036
164
824
253
415
8,756
1,239
9,009


-
-
1,239
9,009		 Total
£000
3,129
1,861
3,526
-
388
10,283
1,991
292
333		 8,904
931
290
436
12,899 10,561

5,049
4,813
289
1,523
16		 4,454
4119
225
714
14

11,690
9,526
1,209 1,035
3 9,445
1,212 10,480

510		 653
1,722 11,133

The notes on pages 34 to 52 form part of these accounts

Page 30

MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF CHANGES IN RESERVES YEAR ENDED 30 JUNE 2022

Balance at 1 July 2021
Surplus/(Deficit) from income and expenditure statement
Other comprehensive income
Release of capital funds spent in year
Transfers
Balance at 30 June 2022
Balance at 1 July 2020
Surplus/(Deficit) from income and expenditure statement
Other comprehensive income
Release of capital funds spent in year
Transfers
Balance at 30 June 2021		 Unrestricted
£000
117,574
(635)
510
260
(20)
117,689
Unrestricted
£000
112,879
232
653
4,801
(991)
117,574		 Income and expenditure reserve
Restricted
Endowment
£000
£000
6,850
70,969
1,464
383
-
-
(260)
-
20
-
8,074
71,352
Income and expenditure reserve
Restricted
Endowment
£000
£000
10,404
60,977
1,239
9,009
-
-
(4,801)
-
8
983
6,850
70,969		 Total
£000
195,393
1,212
510
-
-
197,115
Total
£000
184,260
10,480
653
-
-
195,393

The notes on pages 34 to 52 form part of these accounts

Page 31

MAGDALENE COLLEGE, CAMBRIDGE CONSOLIDATED BALANCE SHEET YEAR ENDED 30 JUNE 2022

Note
Non-current assets
Fixed assets
8a
Heritage Assets
8b
Investments
9
Current assets
Stocks
10
Trade and other receivables
11
Cash and cash equivalents
12
Creditors: amounts falling due within one year
13
Net current assets
Creditors: amounts falling due after more than one year
14
Provisions
Pension provisions
15
Total net assets
Restricted reserves
Income and expenditure reserve - endowment reserve
16
Income and expenditure reserve - restricted reserve
17
Unrestricted reserves
Income and expenditure reserve - unrestricted
Total reserves		 2022
£000
106,650
178
93,931
200,759
189
1,551
6,348
8,088
(3,335)
4,753
(6,428)
(1,969)
197,115
71,352
8,074
79,426
117,689
197,115		 2021
£000
108,262
109
92,474
200,845
195
1,790
4,295
6,280
(2,970)
3,310
(6,884)
(1,878)
195,393
70,969
6,850
77,819
117,574
195,393

These financial statements were approved by the Governing Body on 13 October 2022 and are signed on their behalf by:

C J Greenwood S J Morris Master Senior Bursar

The notes on pages 34 to 52 form part of these accounts

Page 32

MAGDALENE COLLEGE, CAMBRIDGE CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 30 JUNE 2022

Note
Net cash inflow from operating activities
18
Cash flows from investing activities
19
Cash flows from financing activities
20
Increase in cash and cash equivalents in the year
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
12		 2022
£000
488
2,239
(674)

2,053
4,295
6,348		 2021
£000
(835)
(4,627)
(689)
(6,151)
10,446
4,295

The notes on pages 34 to 52 form part of these accounts

Page 33

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2022

1.
Academic fees and charges
College fees:
Fee income received at the Regulated Undergraduate rate
Fee income received at the Unregulated Undergraduate rate
Fee income received at the Postgraduate rate
Research income
Cambridge Bursary scheme
Total
2.
Income from accommodation, catering and conferences
Accommodation
College members
Conferences
Catering
College members
Conferences
Total
3.
Endowment return and investment income
3a.
Analysis
Total return contribution (see note 3b)
Income from:
Freehold land and buildings
Unit Trust Scheme
Cash Deposits
Total
3b.
Summary of total return
Income from:
Quoted and other securities and cash
Gains on endowment assets:
Quoted and other securities and cash
Investment management costs (see note 3c)
Total return for year
Total return transferred to income and expenditure reserve (see note 3a)
Unapplied total return for year included within Statement of Comprehensive
Income and Expenditure
Unapplied total return at beginning of year
Unapplied total return at end of year		 2022
£000
1,393
868
755
140
98
3,254
2022
£000
2,309
95
681
80
3,165
2022
£000
1,207
2,457
-
38
3,702
2022
£000
1,232
(2,967)
(223)
(1,958)
(1,207)
(3,165)
22,626
19,461		 2021
£000
1,423
783
567
211
145
3,129
2021
£000
1,627
59
174
1
1,861
2021
£000
1,109
2,275
-
14
3,398
2021
£000
1,236
7,655
(164)
8,727
(1,109)
7,618
15,008
22,626

Page 34

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

3c.
Investment management costs
Quoted security – equities
Pooled investments
Fixed interest securities
Investment management costs included within note 3b
Freehold Land and Buildings
Total
4.
Education expenditure
Teaching
Tutorial
Admissions
Research
Scholarships and awards
Other educational facilities
Total (note 6)
5.
Accommodation, catering and conferences expenditure
Accommodation
College members
Conferences
Catering
College members
Conferences
Total (note 6)		 2022
£000
-
223
-
223
66
289
2022
£000
2,167
651
551
618
811
251
5,049
2022
£000
3,259
319
905
330
4,813		 2021
£000
-
164
-
164
61
225
2021
£000
1,690
555
484
630
865
230
4,454
2021
£000
2,827
264
742
286
4,119

Page 35

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

6a.
Analysis of 2021/22 expenditure by activity
Staff costs
(note 7)
Other
operating
expenses
£000
£000
Education (note 4)
2,202
2,319
Accommodation, catering and conferences
(note 5)
1,821
1,905
Investment management costs (note 3c)
-
289
Other expenditure
241
1,255
Contribution under Statute G, II
-
16
4,264
5,784
Expenditure includes fundraising costs of £209k. This expenditure does not include
6b.
Analysis of 2020/21 expenditure by activity
Staff costs
(note 7)
Other
operating
expenses
£000
£000
Education (note 4)
2,217
1,976
Accommodation, catering and conferences
(note 5)
1,795
1,238
Investment management costs (note 3c)
-
225
Other expenditure
235
475
Contribution under Statute G, II
-
14
4,247
3,928		 Depreciation
Total
£000
£000
528
5,049
1,087
4,813
-
289
27
1,523
-
16
1,642
11,690
the costs of alumni relations.
Depreciation
Total
£000
£000
261
4,454
1,085
4,118
-
225
4
714
-
14
1,350
9,525		 Total
£000
5,049
4,813
289
1,523
16
11,690
9,525

Expenditure includes fundraising costs of £240k. This expenditure does not include the costs of alumni relations.

6c.
Auditors remuneration
Other operating expenses include:
Audit fees payable to College’s external auditors		 2022
2021
£000
£000
25
23

Page 36

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

7. Staff

Staff Costs
Salaries
National Insurance
Pension costs (note 24)
Average staff numbers (full-time equivalents)
Academic
Non-academics		 Academic
Non-
academics
2022
2022
£000
£000
921
2,708
74
234
142
185
1,137
3,127

Average staff number 2022
Number of
Fellows
Full-time
equivalents
57
3
88
60
88		 Total
Total
2022
2021
£000
£000
3,629
3,554
308
295
327
398
4,264
4,247
Average staff number 2021
Number
of Fellows
Full-time
equivalents
59
3
92
62
92		 Total
2021
£000
3,554
295
398
4,247
92

At the Balance Sheet date there were 43 members of the Governing Body. During the year the number receiving remuneration was 40 who are included in the 60 remunerated Fellows shown above.

The number of officers and employees of the College, including Head of House, who received remuneration in the following ranges was:

2022 2021
Number Number
£100,001 - £110,000 1 1
£110,001 - £120,000 1 1
£120,001 - £130,000 - -
£130,001 - £140,000 - 1
£140,001 - £150,000 1 -

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

Key management personnel

Key management personnel are those persons having authority and
responsibility for planning, directing and controlling the activities of the
College. The key management personnel of the College are therefore the
trustees.
The aggregated remuneration paid to key management personnel consists of
salary, employer’s national insurance contributions, employer’s pension
contributions, plus any taxable benefits either paid, payable or provided, gross of
any salary sacrifice arrangements.		 Total
Total
2022
2021
£000
£000
880
866

Aggregated remuneration

The Trustees received no remuneration in their capacity as Trustees of the Charity, these payments relate to their capacity as College Officers.

Page 37

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

8a.
Fixed assets
Original
cost/valuation
At beginning of year
Additions at cost
Disposals
Reclassification
At end of year
Depreciation
At beginning of year
Charge for the year
Eliminated on
disposals
At end of year
Net book value
At end of year
At beginning of year		 Freehold
Land
£000
40,020
-
40,020
-
-
-
-
40,020
40,020		 Buildings
£000
76,187
-
-
-
76,187
8,584
1,543
-
10,127
66,060
67,603		 Furniture &
Equipment
£000
1,345
-
(9)
-
1,336
910
62
(7)
965
371
435		 Energy
Regeneration
£000
75
-
-
-
75
20
4
-
24
51
55		 Library
Books
£000
172
15
(7)
-
180
73
12
(7)
78
102
99		 Information
Technology
£000
340
-
-
-
340
297
20
-
317
23
43		 Motor
Vehicles
£000
10
17
-
-
27
3
1
-
4
23
7		 Total
£000
118,149
32
(16)
-
118,165
9,887
1,642
(14)
11,515
106,650
108,262

The insured value of freehold land and buildings at 30 June 2022 was £154,480k (2021: £150,039k).

Page 38

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

8b. Fixed assets (continued)

Heritage assets

The College holds and conserves two book collections which are of historical and cultural importance. These comprise the Pepys Library and the Old Library, which provide a valuable research and educational resource. In respect of these collections, the College’s practice is to preserve, conserve and manage the items in its care; to augment the collections where appropriate and within the limited resources available; to enable and encourage access to and use of the collections for teaching and research; and to enable access to and engagement with the Pepys library collection of books by members of the public.

The College holds and conserves a collection of artwork that is of cultural importance. In respect of this collection, the College’s practice is to preserve, conserve and manage the items in its care; to augment the collection where appropriate and within the limited resources available; to enable and encourage access to and use of the collection for teaching and research; and to enable access to and engagement with the College's collections by members of the public.

The majority of assets held in the College’s collections were acquired before 1st July 1999 and, because reliable estimates of cost or valuation are not available for these on a cost-benefit basis, they have not been capitalised. During the year ended 30th June 2022, the College was gifted two collections of books and manuscripts of cultural importance. The College commissioned an expert valuation on these collections and as such the assets have been capitalised and this has been taken as the deemed cost. Heritage assets are not depreciated since their long economic life and high residual value mean that any depreciation would not be material.

Balance at beginning of year
Acquisitions gifted
Total cost of acquisitions
At end of year
9.
Investments
Balance at beginning of year
Additions
Disposals proceeds
Appreciation on revaluation
Increase in cash balances held at fund managers
Balance at end of year
Represented by:
Property
Unit Trust Scheme
Quoted securities – Equities
Other investments
Cash held for reinvestment		 2022
Total
£000
109
69
69
178
2022
Total
£000
92,474
2,950
(1,307)
3
(189)
93,931
43,894
4,698
-
45,339
-
93,931		 2021
Total
£000
99
10
10
109
2021
Total
£000
80,593
2,473
-
9,445
(37)
92,474
40,924
3,807
-
47,743
-
92,474

Investments held by the College also include an additional £1 (2021: £1) investment in the subsidiary company at cost (see note 26).

Page 39

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

10.
Stocks
Goods for resale:
Catering
Fellows Wine
Merchandise
11.
Trade and other receivables
Members of the College
Rents
Conferences
Other receivables
12.
Cash and cash equivalents
Bank deposits
Current accounts
Cash in hand
13.
Creditors: amounts falling due within one year
Bank loans
Due to tradesmen and others
University fees
Advance deposits – students
Caution money
Contribution to Colleges Fund
Other creditors
Accruals and deferred income
Deferred research income		 2022
£000
29
150
10
189
2022
£000
114
711
20
706
1,551
2022
£000
3,407
2,941
6,348
2022
£000
470
777
117
566
206
16
145
983
55
3,335		 2021
£000
26
159
10
195
2021
£000
82
1,030
1
677
1,790
2021
£000
1,640
2,654
1
4,295
2021
£000
470
815
4
373
195
23
152
839
99
2,970

Page 40

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

14. Creditors: amounts falling due after more than one
year
Bank loans
Fee deposits
15.
Pension provisions
CEFPS
£000
Balance at beginning of year
4
Movement in the year
Current service cost including life assurance
-
Contributions
(2)
Other finance cost
-
Actuarial (gain) recognised in Statement of
Comprehensive Income and Expenditure
-
Remaining change in balance sheet liability
recognised in SoCIE
-
Balance at end of year
2		 CCFPS
£000
1,365
16
(63)
25
(510)
-
833		 USS
£000
509
897
(276)
4
-
-
1,134		 2022
£000
5,875
553

6,428

2022

£000
1,878
913
(341)
29
(510)
-
1,969		 2021
£000
6,345
539
6,884
2021
£000
2,628
216
(347)
33
(653)
1
1,878

Page 41

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

16. Endowment funds

Restricted net assets relating to endowments are as follows:

Consolidated
Balance at beginning of year
Capital
New donations and endowments
Fund transfers
Increase/(decrease) in market value of
investments
Balance at end of year
Analysis by type of purpose
Fellowships
Student Hardship and Bursaries
Postgraduate Scholarships
Undergraduate Scholarships and Prizes
Travel Awards
Music, Chapel and Choir
Student Sports and Culture
Library Funds
Other Funds
Corporate Capital
Analysis by asset
Property
Less Bank loan
Securities
Cash		 Restricted
permanent
endowments

£000
30,946
291
-
(1,969)
29,268
10,494
5,693
5,659
1,447
321
398
927
3,392
937
-
29,268
-
-
29,268
-
29,268		 Unrestricted
permanent
endowments
£000
40,023
1
-
2,060
42,084
-
-
-
-
-
-
-
-
-
42,084
42,084
43,761
(6,345)
4,634
34
42,084		 2022
Total
2021
Total

£000
£000
70,969
60,977
292
290
-
983
91
8,719
71,352
70,969
10,494
11,092
5,694
6,080
5,659
5,898
1,447
1,543
321
342
398
424
927
979
3,392
3,599
937
989
42,083
40,023
71,352
70,969
43,761
40,791
(6,345)
(6,815)
33,902
36,960
34
33
71,352
70,969

Page 42

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

17. Restricted Reserves

Reserves with restrictions are as follows:
Consolidated
Capital
grants
unspent
£000
Balance at beginning of year
Capital
9
Accumulated income
-
9
New donations
264
Fund transfer
-
Endowment return transferred
-
Other income
-
Increase/(decrease) in market value of
investments
-
Transfers
-
Release of capital funds spent in year
(260)
Expenditure
-
Balance at end of year
13
Capital
13
Accumulated income
-
13
Analysis of other restricted
funds/donations by type of purpose
Fellowships
-
Student Hardship and Bursaries
-
Postgraduate Scholarships
-
Undergraduate Scholarships and Prizes
-
Travel Awards
-
Music, Chapel and Choir
-
Student Sports and Culture
-
Library Funds
-
New Library Funds
13
Other Funds
-
13		 Permanent
unspent and
other
restricted
income
£000
-
2,626
2,626
-
-
751
28
-
1
-
(371)
3,035
-
3,035
3,035
972
1,255
350
161
55
51
42
148
1
-
3,035
Restricted
expendable
endowment

£000
4,215
-
4,215
1,572
19
66
104
(173)
-
-
(777)
5,026
5,026
-
5,026
2,394
257
437
884
80
-
1
6
-
967
5,026		 2022
Total
£000
4,224
2,626
6,850
1,836
19
817
132
(173)
1
(260)
(1,148)
8,074
5,039
3,035
8,074
3,366
1,512
787
1,045
135
51
43
154
14
967
8,074		 2021
Total

£000
8,226
2,178
10,404
918
18
764
178
415
(10)
(4,801)
(1,036)
6,850
4,224
2,626
6,850
2,775
1,336
684
881
117
48
35
84
9
881
6,850

Page 43

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

18. Reconciliation of consolidated surplus for the year to net cash inflow from operating activities

Surplus for the year
Adjustment for non-cash items
Depreciation
Investment income
Decrease in stocks
Decrease in trade and other receivables
Increase in creditors
Movement in pension deficit
(Gain)/loss on investment
Donated Heritage Assets
Adjustment for investing or financing activities
Investment income
Interest paid
Net cash inflow from operating activities
19.
Cash flows from investing activities
Investment income
Non-current investment disposal
Endowment funds invested
Payments made to acquire non-current assets
Total cash flows from investing activities
20.
Cash flows from financing activities
Interest paid
Repayments of amounts borrowed
Total cash flows from financing activities		 2022
£000
1,212
1,645
-
6
239
379
601
(3)
(69)
(3,726)
204
488
2022
£000
3,726
1,307
(2,762)
(32)
2,239
2022
£000
(204)
(470)
(674)		 2021
£000
10,480
1,358
1
14
385
(214)
(97)
(9,445)
(10)
(3,526)
219
(835)
2021
£000
3,526
-
(2,438)
(5,715)
(4,627)
2021
£000
(219)
(470)
(689)

Page 44

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

21. Consolidated reconciliation and analysis of net debt

Cash and cash equivalents
Borrowings:
amounts falling due within
one year
Unsecured loans
Bank overdraft
Obligations under finance
leases
Derivatives
Borrowings:
Amounts falling due after
more than one year
Unsecured loans
Obligations under finance
leases
Derivatives		 At July
2021
Cash
Flows
Acquisitions
& Disposal
of
subsidiaries
New
finance
leases
Other
non-cash
changes
Changes in
market
value and
exchange
rates
At 30
June
2022
£000
£000
£000
£000
£000
£000
£000
4,295
2,053
-
-
-
-
6,348
(470)
-
-
-
-
(470)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(470)
-
-
-
-
(470)
(6,345)
470
-
-
-
-
(5,875)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(6,345)
470
-
-
-
-
(5,875)
(2,520)
2,523
-
-
-
-
3

22. Financial Instruments

2022 2021
£000 £000
Financial assets
Financial assets that are equity instruments measure at cost less impairment
Other investments 50,037 51,550
Financial assets that are debt instruments measure at amortised cost
Cash and cash equivalents 6,348 4,295
Other debtors 1,423 1,663
Financial liabilities
Financial liabilities measure at amortised cost
Loans 6,345 6,815
Trade creditors 777 815
Other Creditors 1,604 1,286
23. Capital commitments
2022 2021
£000 £000
Capital commitments at 30 June are as follows:
Authorised and contracted - -

Page 45

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

24. Pension Schemes

The College participates in three defined benefit schemes and two defined contribution schemes. The defined benefit schemes are the Universities Superannuation Scheme (USS), the Cambridge Colleges’ Federated Pension Scheme (CCFPS) and the Church of England Funded Pensions Scheme (CEFPS). The defined contribution schemes are the NOW: Pensions scheme and the Cambridge Colleges Group Pension Scheme. The details of the schemes are as follows:

Universities Superannuation Scheme

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

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

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

The key financial assumptions used in the 2020 valuation are described below. More detail is set out in the Statement of Funding Principles (uss.co.uk/about-us/valuation-and-funding/statement-of-funding-principles).

CPI assumptions Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves less: 1.1% p.a. to 2030, reducing linearly by 0.1% p.a. to a long-term difference of 0.1% p.a. from 2040

Pension increases (subject to a floor of 0%))

CPI assumption plus 0.05%

Discount rate (forward rates) Fixed interest gilt yield curve plus: Pre-retirement: 2.75% p.a. Post retirement: 1.00% p.a.

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

2020 valuation

Mortality base table 101% of S2PMA “light” for males and 95% of S3PFA for females Future improvements to CMI 2019 with a smoothing parameter of 7.5, an initial addition of 0.5% p.a. and mortality a long-term improvement rate of 1.8% pa for males and 1.6% pa for females

Page 46

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

24. Pension Schemes continued

The current life expectancies on retirement at age 65 are:

2022 2021
Males currently aged 65 (years) 23.9 24.7
Females currently aged 65 (years) 25.5 26.1
Males currently aged 45 (years) 25.9 26.7
Females currently aged 45 (years) 27.3 27.9

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

sumptions:
2022 2021
Discount rate 3.31% 0.87%
Pension increases (CPI) 4.45% 2.5%

Cambridge Colleges’ Federated Pension Scheme

The College operates a defined benefit plan for the College’s employees of the Cambridge Colleges’ Federated Pension Scheme.

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

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

e principal actuarial assumptions at the balance sheet date were as follows:
2022 2021
% p.a. % p.a.
Discount rate 3.80 1.80
Increase in salaries n/a 3.10
Retail Prices Index (RPI) assumption 3.45* 3.40
Consumer Prices Index (CPI) assumption 2.75* 2.60
Pension Increases in payment (CPI Max 2.5% p.a.) 2.05* 1.95

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

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

Members are assumed to retire at their normal retirement age (65) apart from in the following indicated cases:

Male Female
Active Members – Option 1 Benefits 064 64
Deferred Members – Option 1 Benefits 63 62

Page 47

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

24. Pension Schemes continued

Allowance has been made at retirement for non-retired members to commute part of their pension for a lump sum on the basis of the current commutation factors in these calculations.

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

Present value of plan liabilities
Market value of plan assets
Net defined benefit asset/(liability)		 2022
2021
£
£
(6,411,539)
(8,101,861)
5,578,193
6,736,394
(833,346)
(1,365,467)

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

Current service cost
Administrative expenses
Interest on net defined benefit (asset)/liability
Total		 2022
2021
£
£
-
8,511
15,918
13,562
24,596
29,631
40,514
51,704

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

Present value of plan liabilities at beginning of period
Current service cost
Employee contributions
Benefits paid
Interest on plan liabilities
Actuarial losses/(gains)
Present value of plan liabilities at end of period		 2022
2021
£
£
8,101,861
8,581,688
-
8,511
-
401
(275,258)
(366,944)
143,367
121,784
(1,558,431)
(243,579)
6,411,539
8,101,861

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

Market value of plan assets at beginning of period
Contributions paid by the College
Employee Contributions
Benefits paid
Administrative expenses paid
Interest on plan assets
Return on assets, less interest included in Profit & Loss
Market value of plan assets at end of period
Actual return on plan assets		 2022
2021
£
£
6,736,394
6,548,515
62,536
66,022
-
401
(275,258)
(366,944)
(17,942)
(20,659)
118,771
92,153
(1,046,308)
416,906
5,578,193
6,736,394
(927,537)
509,059

Page 48

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

24. Pension Schemes continued

The major categories of plan assets for the year ending 30 June 2022 (with comparative figures at 30 June 2021) are as follows:

Equities
Bonds & Cash
Property
Total		 2022
2021
52%
48%
34%
42%
14%
10%
100%
100%

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

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

Return on assets, less interest included in Profit & Loss
Expected less actual plan expenses
Experience gains and losses arising on plan liabilities
Changes in assumptions underlying the present value of plan liabilities
Remeasurement of net defined benefit liability recognised in OCI		 2022
2021
£
£
(1,046,308)
416,906
(2,024)
(7,097)
(597,637)
104,648
2,156,068
138,931
510,099
653,388

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

Net defined asset/(liability) at beginning of year
Recognised in Profit and Loss
Contributions paid by the College
Remeasurement of net defined benefit liability recognised in OCI
Net defined benefit asset/(liability) at end of year		 2022
2021
£
£
(1,365,467)
(2,033,173)
(40,514)
(51,704)
62,536
66,022
510,099
653,388
(833,346)
(1,365,467)

Funding Policy

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

The last such actuarial valuation was as at 31 March 2020. This showed that the plan’s assets were insufficient to cover the liabilities on the funding basis. A Recovery Plan has been agreed with the College, which commits the College to paying contributions to fund the shortfall. These deficit reduction contributions are incorporated into the plan’s Schedule of Contributions dated 21 May 2021 and are as follows:

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

Page 49

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

24. Pension Schemes continued

Other Pension Schemes

The College participates in three other pension schemes:

NOW: Pensions

The College appointed NOW: Pensions to provide its workplace pension scheme for its non-academic staff from 1 April 2014. NOW: Pensions provides a defined contribution scheme which invests employer and employee contributions to provide a member specific fund that will be converted into pension on the member’s retirement. There were contributions of £17k (2021: £20k) outstanding as at the year end due to NOW: Pensions.

Cambridge Colleges Group Personal Pension Scheme

The College offered a defined contribution pension scheme to its non-academic staff until April 2014. The pension cost for this scheme represents contributions payable by the College, plus the set-up costs. There were contributions of £2k (2021: £3k) outstanding as at the year end due to the Cambridge Colleges Group Personal Pension Scheme.

Church of England Funded Pensions Scheme

Magdalene College (Cambridge) participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Responsible Bodies.

Each participating Responsible Body in the scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme.

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out as at 31 December 2018. The 2018 valuation revealed a deficit of £50m, based on assets of £1,818m and a funding target of £1,868m, assessed using the following assumption:

Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) are set out in the table below.

% of pensionable stipends Jan-18 to Dec-20 Jan-21 to Dec-22
Deficit repair contributions 11.9% 7.1%

As at 31 December 2019, 31 December 2020 and 31 December 2021 the deficit recovery contributions under the recovery plan in force were as set out in the above table.

For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme’s rules.

Page 50

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

24. Pension Schemes continued

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the balance sheet liability over 2020 and over 2021 is set out in the table below.

Balance sheet liability at 1 January
Deficit contribution paid
Remaining change to the balance sheet liability* (recognised in SOCIE)
Balance sheet liability at 31 December		 2021
4,000
(2,000)
-
2,000		 2020
6,000
(3,000)
1,000
4,000

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. In general, these are set by reference to the duration of the deficit recovery payments but as at 31 December 2021, under accounting rules the payments are not discounted since the remaining recovery plan is less than 12 months. No price inflation assumption is needed since pensionable stipends for the remainder of the recovery plan are already known.

Dec-21 Dec-20 Dec-19
Discount rate 0.0% pa 0.2% pa 1.1% pa
Price inflation n/a 3.1% pa 2.8% pa
Increase to total pensionable payroll -1.5% pa 1.6% pa 1.3% pa

The legal structure of the scheme is such that if another Responsible Body fails, Magdalene College (Cambridge) could become responsible for paying a share of that Responsible Body’s pension liabilities.

The total pension cost for the year to 30 June (see note 7) was as follows:

USS: Contributions
CCFPS: Charged/(Credited) to SOCIE
Other Schemes		 2022
2021
£000
£000
242
250
(47)
6
132
142
327
398

25. Related Party Transactions

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

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

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

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

Page 51

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2022

25. Related Party Transactions continued

The salaries paid to Trustees in the year are summarised in the table below:

e salaries paid to Trustees in the year are summarised in the table below:
From
To
£1
£10,000
£10,001
£20,000
£20,001
£30,000
£30,001
£40,000
£40,001
£50,000
£50,001
£60,000
£60,001
£70,000
£70,001
£80,000
£80,001
£90,000
£90,001
£100,000
£100,001
£110,000
Total		 2022
2021
24
23
6
7
5
2
-
2
1
1
-
-
1
1
1
1
1
1
-
-
1
1
40
39

The total Trustee salaries were £692k for the year (2021: £685k).

The trustees were also paid other taxable benefits (including associated employer National Insurance contributions and employer contributions to pensions) which totalled £188k for the year (2021 £181k).

The College has one trading subsidiary, Cloverleaf Limited, which is consolidated into these accounts. Cloverleaf Limited is 100% owned by the College and is registered and operating in England and Wales.

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

26. Principal subsidiary and associated undertakings and other significant investments

Cost Class of shares Holding
£
Cloverleaf Limited 1 Ordinary 100%

The principal activity of the above company is the development of the grounds and buildings of Magdalene College, Cambridge. This company is included in these consolidated financial statements.

Page 52