MAGDALENE COLLEGE CAMBRIDGE REPORTS AND ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2023 Registered Charity Number 1137542 MAGDALENE COLLEGE, CAMBIUDGE FIINAYI CIAL STATEMENTS YEAR ENDED 30 JUNE 2023 Contents Page Fellowship Principal Officers and Professional Adyisers Report of the Governing Body Statement of Public B¢nefit 14 Statement of Internal Control 17 Responsibilitie5 of the Govemtng Body Independent.4uditors' Report tt) ihe Governing Body Statement of Principal Accounting Policies Consolidated Ststetnent of Comprehensiv¢ Income and Expenditure StateTnent of Changes in R¢serve5 Consolidated Balance Sheet 18 19 22 29 30 Consolidated Staternent of Cash Flows 32 Notes to the Financial SMements 33 Pag¢ I MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP YEAR ENDED 30 JUNE 2023 FELLOWSHIP CoverDing Body (Trusttts of the ¢karity) Sir Christopher Greenwood GBE CMG KC, MA, LLM 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, PhD {Warwick) Professor S Martin, MA. PhD Professor T N Harper, MA. PhD Professor N G Jones, MA. LLM, PhD Professor H Babinsky, MA. PhD (Cranfield) Professor P Dupree, MA, PhD Professor S K F Stoddart, MA, PhD Professor T A Coombs. MA, PhD Professor H Azérad. MA, PhD A L Hadida, MA, PhD Professor C S Watkins. MA. MPhil, PhD l¥ofessor A L Du Bois-Pedain. MJur {Oxon) Professor S C Mentch¢n, 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 Profe550r M J Waith¢, MA (Leed%), PhD C D Lloyd. MA (Kent) R L Roebuck. MEng, PhD Professor A K Bennison, PhD (London) Professor L C SkitJn¢r, MPhil, PhD Professor E So. MEng, PhD. CEng Professor W T Khale4 MA. PhD A Ercole. ￿, PhD. PG Dipl, MB Bchir, FRCA T G Euser, Msc, PhD (Twente) J M Munn5, MA (Durham). MPhil (Bristol). PFLD. FRSA S A Bacallado. PhD Professor S Dubow, DPhil (Oxon) Professor S J Eglen, DPhil (Oxon) N R CaTroll. MA. MB, Bchir Professor J J Orr. PhD The Revd S Aikins, MA Professor P J Lane, MA. PhD A Meghji, MA. MPhtl, PhD (until 31 December 2022) M C SkotL PhD (until 30 September 2022) A Mills, DipABRSM, MA. BCL (Oxon). BaTris*r * Law (Gray's Inn) E Gallo, MPhil. DPhil (Oxon) S Ravenwroli MA (Nottingham). PhD J Patter50n, MA (London). PhD {Manchester} (from I September 2022 until 30 September 2023) C Whitely, MPhil {London). PhD (LSE) (from I September 2022 to 31 August 20?3) Professor K Okkenhau& PhD (Toronto, Canada) lfrom l October 2022} Professor L G Fisher. MA (Si Andrews), PhD (from I Ckiober 2022) A BryaTE. MA (York), PhD (London) (from I September 2023) Page 2 MAGDALF.NE COLLEGE. CAMBRIDGE FELLOW.SHIP (continued) YEAR ENDED 30 JUNE 2023 Erneritus Fellows Profesior P J Grnbb. SCD Profesyor R Hyam, LittD P E R¢)￿01￿5, SCD His Honour C F Kolb¢r4 MA. PhD Profess(Trr N Boyle. LittD. FBA Profe550r R J S Spence, MA. PhD Profe550r E Duffy. DD, FBA Professor N Rushion, MD Professor H A Chase, S¢D, FREng Professor M A Carpenter. SCD K Patel. MA. MSC, PhD IEssex) Professor T Spencer. MA. PhD (From l October 2022) Research Fellow5 S Caputo, PhD {until 30 September 2022) Y Glazer-EJtan, PhD (uniil 31 December 2022) A Baez-Orteg4 PhD D Dunkelmann, MS¢ (Zurich), PhD P Asimov-Hofmann, AB (Brown). Mst (Oxon), PhD H Marshall, MA (Brown), PhD (from l October 2022) . Msc (Fudan. China) {from l October 2022) Sertlor Restar¢h Fellows P M s￿ele. MPhil, PhD A P Ctsutts, MSC. PhD luntil 31 December 2022) A Neumann, MA, PhD S L Caddy, PhD {until 30 September 2022) Professor F Aigbirhio, MA. DPhil. Cchem, FRSC Professor D A S Fergusson OBE, MA (G1&5gow), BD (Edinburgh), DPhil (Oxon), DD, FBA, FRSE T Li¢tn¢e MA. MPhil. PhD, FHEA, FRHistS. FSA (from I September 2022) S Caputo, Mk {Edinburgh}, PhD (from l Ocrober 2022) A l.efauve. Msc. Pht) (from l October 2022) Professor A Fia]kov, Msc, PhD (Tel Aviv, Isrdel) (fr(￿ l December 2022) Life Fellows M D Billinge. MA, PhD A R Thompson, MBE, MA, MPhil Professor T H Clutton-Brock, SCD, FRS S Halper, PhD Prof¢ssor E H CIM)per. Lit￿, FBA Professor T A J Cockerill, MA, MPhil (Leeds). PhD (Manchester) (deceased 12 June 2023) Professor E Rothschild CMG, MA Professor J R Raven MA. PhD. LittD. FRA M C Skoo PhD (from l Ouober 2022) Page 3 MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP (Continued) YEAR ENDED 30 JUNE 2023 Bye-Fellows O F R HoardL PhD {until 30 September 2022) F Englan(L MEng (London). MRes (until 30 September 2022) C Vassiliu, MPhil (until 30 September ?022) V Vitaliev, MA (Kharkiv), PhD (Moscow) (until 30 September 2023} M Hrebeniak, PhD {London). MA {honorary) (uniil 31 December 2022) C MacKenzie, PhD (ANU. Australia) (froln l O¢tober 2022) Z BoniL MA lfrom l October 202?) R Hall Maudslay. MEng (from l Ociober 2022 until 30 September 2023) M-R Newis. MPhil lfrom l (knober 2022 uutil 30 September 2023) J Hauge. PhD (from l October 20?2) Visiting Fellows Prof¢ssor C Casey MA, PhD (Dublin) (until 30 Sepiemter 2022) Professor D Chisho]m. PhD (W&%hington} {from l October 2022 to 31 December 2022) Professor G Bagna￿0 Gianni. MA (Milanol, PhD (PeTugia) (from l Ottober 2022 to 31 December 2022) Professor A Orellana. PhD (CU Chile) (from 17 April 2023 to 31 July 2023) Professor C Whelon, Msc {Ireland), PhD {from 17 April 2023 10 31 July 2023) Mr D Mulhall, MA (Cork, Republic of Ireland) (from l (ktober 2022 to 30 September 2023) Honorary Fellows HRH the Duk¢ of Gloucester KG, GCVO. MA Professor Sir John Boardman, MA, FBA. Hon RA Professor Sir David Hopw(M)(L MA, PhD. Dsc (Gl&sgow), FRS Professor H H Vendler, AB, PhD (Hatyard), 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. PbD. Hon SCD. Hon Dsc (Oxon), FRS D J H Murphy. MA Professor D C Clary. SCD, FRS The Rt Hon Lord Mail(Kh Brown KCMG, MA RWHCrippsAM Th¢ Rt Hon Lord Ilgor} Judge KL PC. MA. Hon LLD The Rt Hon Sir Andrew MorrttL PC, CVO. MA R H Vignole& BA, Bmus. ARCM, Hon RAM, Hon FRCM The Hon Yan Lung Wong, SC. MA, JP Kh¢)on Hong Kuok, BA {Singapore) D D Robinson. CBE, MA and MA (Yale). FSA, DL (deceased 2 December 2022) Professor S Springman, CBE, PhD. FREng C I von Christierson, MA HRH Sultan Nazrin Shah. BA (Oxon). PhD (HarYard} L L Cardozo Kindersley MBE Dame C A Duffy DBE. BA {LIve4X￿1) A Tennent. BA, MIB T Cripps. BA. MBA The Rt Revd & Rt Hon the Lord Williams of Oysterniouth. PC. DD. Hon L￿L (Oxford). FBA Professor the Lady Williams of Oysterrnouth. MA The Ri Hon Brenda Marjorie Hale. Baroness Hale of Rich[nOn￿ DBE. PC, FBA M C Newell, BA The Very Revd Dr D M Hoyle MBE, ￿ PbD C B M Derham, MA M Mooman, MPhil A Schulw MA Page 4 MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP (continued) YEAR ENDED 30 JUENE 2023 Fellow-Commoner5 R L Skelton, MA A l J Fitrsimons, Diplomé¢ de I'ISIT 04TiS) J J Hellyer JoThes, MA, FRCO P J Marsh. MPhil. Honorary PhD (Uniyersity of Central England) R V Chartener. AB (Princeton). MPhil, MBA (Harvard) C H L Foord. MAAT. Assoc CIPD Sir Andrew Ritchie, KC. MA (until 8 NovemiKr 2022) Professor C V S Br&sted-Pike, MA, Msci. PhD G H Walk¢r, MA, LRAM, PGDip (RAM) (until 31 Augu￿ 2022) H Critchlow, PhD L Masuda-Nakagawa. PhD (Tokyo) Sir Bradley Fried, MBA (Pennsylv￿14), CA(SA) (until 31 May 2023) F Schuery, MA A Thom, MA, PhD (until 10 February 2023) C N Spottiswoode, PhD J M Potter, BA (Oxon), lfrom I September 2022) Page 5 MACDALENE COLLF.GE, CAMBRIDGE PRINCIPAL OFFICERS AND PROFESSIONAL ADVISERS YEAR ENDED 30 JUNE 2023 Address Magdalene College CaTnbrid8e CB3 OAG Officers Master: Pre5idtnt: Sir Christopher Greenw(rt)d GBE CMG KC. MA, LLM Professor B J Burchell. MA and PhD (Wati¥ick) (until 30 September 2023) N R Carroll, MA, MB, Bchir (from l (ktober 2023) Professor Stuart Martin, MA. PhD Mr Steven Morris, BA (Newcasile). FCA. IPFA Mrs Corinne Lloy4 MA (Kent) Senior Tutor: Settlor Bursar: Development Director: Professional Adviser5 Audltors: Peters Elworthy & Moore Salisbury House Station Road Cambridge CBI 2LA B&Dkers: Lloyds Bank 3 Sidney Street Cambridge CB2 3HQ Property Managers: (Commercial) Cheffins Commer¢ial Clifton House 1-2 Clifton Road Cambridge CBI 7EA Property ManageTS: (Agricultural) Savills Olympic House DDddin8ton Road Lincoln LN6 3SE Seeuriti¢5 Manager5". Baillie Giffi)rd & Co Calion Square l Gre¢n5ide Row Edinburgh EHI 3AN Cazenove Capital l London Wall Pl￿¢ Lottdon EC2Y SAU Troy Asset Management 33 Davie5 Street LoDd¢)n WIK 4BP Solleitors: Ashtons Legal Chequer5 House 77-81 Newmarket Ro Cambridg¢ CB5 8EU Page 6 MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY YEAR ENDED 30 JUNE 2023 The Gov¢rntng Body of Magdalene College presents its Re[￿rtS and Accounts for the year ended 30 June 2023. STATUS The College of Saint Mary Magdalene. one of31 Colleges in the UDrversity of CaTnbrid8e, cornmonly called Magdalene College, was re-founded by Lord Audley of Walden in 1542. The 1542 Chart¢r provides that th¢ Coll¢g¢ 15 for the advancemenl of knowledge, Iwls, learning and virtue undfor ihe odvancemeni of moral siudies in ¢he University of Cambridge., The College became a regislered charity on 18 Augusi 2010. The Charity Commission of England and Wales is therefore th¢ principal regulator for the College. The College is a legally independent CQTFKJrntion within the collegiate University of Cambridge. A system of University-wide committees exists to plan and discu&8 the joini affairs of the wllegiate University. AJMS AND OWEcfivES The Govemtng Body has adopted a Strategic Plan to deteTmin¢ the ￿￿jre direction and size of the College. Thi5 plan identifies the priorities to be addressed to maintain and enhance leaching provision and the College's academic resources, and to provide appropriate residential aDd r¢cr¢ational amenities. The College's charitsble putpose &8 a place of religion, education. leorning and trsearch is clearly reflected by objectives in the Strategic Plan: io deliver a world-class undergraduate eduution by safeguarding the provision of smail-group Coll¢g¢-based supervision teaching. to maintain and devel¢)p a commitment lor er]¢ouraging applicwions from th¢ most talented students irrespeciive of social, ethnic and religiou5 background in tsndern with a need$-blit￿ adtnission system supported by a comprehensive bursary programme. and to promote academic research of the high¢5t quality. GOVERNANCE The Governing Body of the College comprises the Master and the Fellows (Cl&8%es A. B and C. if aged below 67 years) and they are defuelo the tsvsiees of the College. This body is constiwted and regulated in accordance with the College Statutes {reviscd 1997) and is respon5ibl¢ for the str*¢gi¢ direction of the Coll¢g¢, for its adtnÈnistration atxd for ihe management of its fjnances and assets. 11 meets at Ivdst seven times a year under the chairnianship of the Master. The Presidents of the Middle Common Room IMCR) and the Junior Common Room {JCR) attend for unreserved business. The Goyerning Body acknowledges its responsibiliry to act with pnjdence and care and io ensure the College ¢omplies with relevant laws and regulations. The Governing B￿Y elects all Fellows of the College. Infonnation is given to new Fellows re8arding the College and how it is governed. Th¢ principal committees of the Governing Body include the: Academic Committee; which establishes policy and monitors progress in respecl of the College's main activities of education and research. The Conunittee meets five times a year and its membership is drawn from the Goyeming Body" Fellowship Committee. which advises on the recrnitsnent and the retention of College Fellows including recomTnendaiions about individual elections. The Conllniuee meets at least four times a year. Its membership, whiLh is drawn from the Governing Body. reflects the range of academic disciplines; Finance & Genernl P￿TF￿e$ C report that facL We have nothing to report in this regard. Page 19 MAGDALENE COLLEGE. CAMBRIDGE INDEPENDEiYf AUDITORS, REPORT TO THE GOVERNING BODY (conlinued) YEAR ENDFD 30 JUNE 2023 Opinion on other matters preseribed by tbe Ststutes ol tbe University of Cambridge In our opinion based on the work undertaken in the course of the audit.. The contribution due from the College to the University has been computed as advised in the provisional sse55ment by the University of Cambridge and in accordanee with the provisions of Sthtute G,11, of the University of Cambridge. M#tter5 on wbicb we 8r¢ required to report by eiception In the light of the knowledge and understanding of the Group and its envirO[￿tient obtained in the course of the audit, we have not identified m*erial misstatements in the Report of the Governing Body. We hav¢ nothing to report in respect of the following matters in relation to which the Charities (Accounts and RetM)rts) Regulations 2008 require us to report to you if. in our opinion= suificient accounting record% have not been kepL or the financial siatements are not in agreement with the accounting records. or we have not received all the infornjation and explanations we require for our audiL Respon5ibilitie5 of the Governillg Body As explained more fully in the resExinsibilities of the Goveming Body statemeni se( out on page 19, the Governing Body is responsibl¢ for the prepardtion of the financial statements and for being sarisfied that they give a tNe and fair view. and for such internal control as the Governing Body determine is necessary io enable the preparation of f￿ancial ststemenis that are free from material miss¢at¢menL whether due io fraud or error. In preparing the fmancial statements, the trustees are respnsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable. tnatter5 related io going concern and using the going concern basis of accounting unless the trust¢¢s either iniend to liquidate th¢ Group. College or subsidiary io cease operations, or have no realisti¢ alternative but to do so. Auditors, responsibiliti￿ for the audit of tbe fin4Trcial statements Our objectives are to obtain rvdsonable ￿SUr￿¢t aboui wheth¢r the fmancial statements as a whole are fre¢ from material misstatemenL whether due to fraud or error, and to issue an Audilors, report that includes our opinion. Reasonable assurance is a high level of assurance. but is not a guardniee that an audit conducted tn accordance with ISAS (UK) will always detect a material misstsiement when it exists. Mi55tatements can arise froln fraud or error and are consider¢d material if. individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the b&8ts of th¢se financial stst¢m¢nts. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design pr￿edureS in line with our respjnsibiliiies. outlined a￿Ve. to detect material misslatements in respect of irregularities. including frau(L The extent to which our procedures are capable of deterting irregulariti¢s. including fraud T5 detailed below: Our approach to identifying and as5e55ing the risks of material misstatement in respeci of irregularities. including fraud and non-¢ompliance with laws and regulations, wL5 a5 follows-. the engagement partn¢r ensured that the engagcment team collectively had the appropriate competence, capabilities and skills to ideniify. or recognise non-COTnpliance with applicable laws and regu18tions,' we ideniified the laws and regulaiions applicable to the Group through discussions with Trustees and other managemenL and from our knowledge and experÉenc¢ of the education sector. we obtsined an understanding of the legal and regulatory framework applicable ￿ the Group and how th¢ Group is complying wÈth thai framework- we obtained an understanding of the Group's ￿lIcIeS and pr￿edureS on compliance with laws and regUl￿10n$. including documentaiion of any instances of non-compliance. w¢ identified w'hich law5 and regulations were signifEcant in the context of the Group. The Laws and regulations we considered in this coniexi were Charities Ad 2011. the Stamtes of the University of Cambridge and t&xaiion Page 20 MAGDALENF. COLLF.GE, CAMBRIDGE INDEPENDENT AUDITORS, REPORT TO THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2023 legislation. We &5sessed th¢ requiT¢d compliance with these laws and regulations as part of our audii procedures on the related fmancial ststement items: in addition, we considered wovisions of other laws and regulattons do not have a direct effect on the financial s￿erne￿ts but compliance with which might be fundamcntal to the College's and the Group's ability io operate or io avoid material penalty- and identified law5 and regulations were corntnunicated within the audit team r¢gularty and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the Group's financial ststements to material misstatemenL including obtaining an Understandin￿ of how frdud might occur. by.. making enquiries of management as to where they considered there was susceptibility to frau4 their knowledge of actual, su5pect¢d and alleged fraud- and • considering th¢ internal contro]5 in place to mitigate risks of fraud and Don-compliance with laws and regulations. To address the risk of fraud through fftanagement bi&% and oyerride of controls. we; • tested joumal entries to id¢nlify unusual transacti¢)ns' asse55ed whether judgements and assumpiions made in determining the accounting ¢stimate5 set out in the accounttng policy were indt¢alive of Fotential bias. and investigated the rationale behind significant or unusual transactions. In response io the risk of irregularities and nonacompliance with laws znd regulations. we de5ign¢d procedures which included. but were not limÉt¢d to.. agreeing f￿anCIal statement digclosures to underlying sup￿ting d(￿Umen￿l0n. reviewing minutes of meetings of those charged with governance. enquiring of management as to actual and potential liiigation and clairns" and • reviewing correspondence with relevant regulators and the Group's legal advisors." There are inherent limitations in our audit procedures descnbed atrf)ve. The more removed that laws and regulations are from financial trdnsactions. the less likely it is that w¢ would b¢c4)me aware of non-compliance. Auditing standard5 a150 lilnit th¢ audit pr(Kedures required to identify noD-¢ompliance with laws and regulations to enquiry of th¢ Trustees and other managem¢nl and th¢ inspection of regulatory and legal COTrestA)ndence, if any. Materi21 misstatements that arise due lo fraud ¢an be harder io detect than those that arise froTn error as they may involve deliberate concealment or collusion. A further des¢ription of our respnsibilitie5 for the audtt of the financial statements is k￿ed on the Financial Reporting Council's websit¢ at". www.fvc.org.uk/audiiorsresponsibiltics. Thi5 description fornis pan of our audilors. report. Use of our report This report is made solely to the College trustees. as a body. in accordance with College's siaiutes. the Statutes of the University of Cambridge and the Chartties A¢1 2011. Our audit work has been undertaken $0 that we might Statc lo the Governing Body those tnattets we are required to slate to them in an Audiiors. Report and for no other purpose. To the fullest extent pertnitted by law. we do not accept or ￿ume responsibility to anyone oth¢r than the College and the College's Governing Bthly as a tKdy, for our audit work. for this reporl or for the opinions we have fomied. PÉkm eLLOC*-¥ H. PETERS ELWORTHY & MOORE Chartered Accountartts and Stawtory Auditors Salisbury House, Station Road. Cambridge CBI 2LA 13 October 2023 Peters Elwofthy & M¢x)r¢ is ¢ligible to act as an auditor tn lerms of section 1212 of the Compantes Act 2006. MAGDALENE COLLEGE, CAMBRtDGE ST ATEMENT OF PRINCIPAL ACCOUNTING POLICIES YEAR ENDED 30 JUNE 2023 Basis of preparatlon The fmancial statements have been prepared in accordance with the provisions of the Statute5 of the College and of the University of Cambridge. using the Recommended Cambridge College Ac£ounts (RCCA) forniat- and applicable United Kingdom Accounttng Sthndards. including Financial Reporting Standard 102 (FRS102) and the Statement of liecommended Pra¢tice (SORP).. Accounting for Further and Higher Education issued ill 2019. The Consolidated Statement of Comprehensive Inwme and Expenditure includes activity analysis in order io d¢monstratc that all fee income is spent for edu￿tIonal purposes. The analysis required by th¢ SORP is set out in noie 6. The College is a public benefit entity and therefore has applied the rel¢vant public b¢n¢fit requirement of the applicable UK laws and accounting standanls. Going coneerD The finartcial statement5 have been prepared on a going wncern basis. The College h&5 a150 5¢t a detailed budget plan for the 2023-24 financial year and outline budgets up to financial year end 2026. This ffftancial planning work has included an analysis of the Colleg¢'s unrestricred liquid resources. and wgether these fmancial plan5, demonstrate that the College has sutricient resourc¢5 to meet liabilities 18 they fall due for a period of no less than 12 months from the date these financial statetn¢nts are approved. The Governing Body. &$ the trustee Ix)dy of the College. considers preparation of these f]nancial statements using a going concern b&sis to be appropriate. B•$is of #ecounting The [￿a￿tial 5tatemeDts have been prepared under the historical cosl convelltio￿ &% miNlifi¢d by the revaluation of investment assels and certain operational land and buildtngs at deemed cost. Ba515 of con501idatlon The Consolidaied Financial S￿ernents tnclude the College and its subsidiary undertakin& Cloverleaf Limited. Intra- group transactions are elimina(ed uExTrn consolidation. The activities of student wieties have noi been consolidated. A s¢parate balance sheet and related notes for the College only are not included because Cloverleaf Limited 15 a desi￿) and build company and therefor¢ the balan¢¢ sheet of the College would not be materiaily different ￿ the one included in these accounts. Some dethils of the subsidiary undertaking are given in noie 26. Recognition of It)eome Aeademie fees Academic fees are recognis¢d in the peri(Ml to which they ￿late and include a]1 fees chargeable to students or their sponsors. The wsts of any fees waived or written off by the Coll¢ge are included Ls expendivjre. Restricted earch i income Researeh grants received from non-governmenl sources are recognised withtn the Con501iilared Statement of Comprehensive Income and Expenditure when the College is entitled ￿ the income and ￿rfOrMance related conditions have been rnet. Donations and end ents Non exchange transactions without perforniance related conditions are donations and ¢ndowments. Donations and endowments with donor ]rn￿sed restrictions are recognised withtn the Consolidated Statement of Comprehensive Income and Expenditure when the College 1% entiiled to the income. Income is retained within restricted reserves until such lime that it 15 Utili5ed in line with such restrictions at which w)int the incom¢ is released to genera] reserves through a reserve transfer. Donations and end0￿￿entS with restrictions are classified as Testricted Teserves and additiona] details are provided within (he notcs to the accounts. Page 22 MAGDALENE COLLEGE, CAMBRIDGE ST ATEMENT OF PRINCIPAL AccouKfiNG POLICIES (conlinued) YEAR ENDED 30 JUNE 2023 There are four main types of donations and endowm•Jts with restriction5: l. Restricied donations- Ihe donor has specificd that th¢ donation rn￿￿ be used for a particular Obj￿tlY¢. 2. Unrestricied pernianent endowments - the donor specifi¢d that th¢ fund 15 to b¢ pern￿lentlY invest¢d io generate an in¢ome stream for the general benefit of the College. 3. Restricted expendable endowments- the donor specified a particular objective and the College can convert the donated sum inio income. 4. Restricted pennanent endowments - the donor h&8 specified the fimd is to be pemanently invested to generate an income stream to be applied w a particular objective. Donations Mith no restrictions are recorded within the Consolidatrd Sts*ment of Comprehensive Income and Expenditure when the College is efttitled to the Éncome. Total return The College invests its securititt investtnent porrfolio and allocates a proporti(￿ 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 ts deterniined by a spending rule, currently 3.250/0, whith is de5rgned io stabilise annual spending levels from the endowThenr. The income tt7nsferred to the consolidated Statemeni of Comprehensive Income and Expenditure on thi5 total r¢turn basis is calculatcd by a foTmula that uses the weighied average value of the College's securities portfolio over a three-y¢ar p¢riod up to the conunencement of the Currenl a￿ounting y¢8r. Details are given in note 3. InvestmeTtt income and chan e in value of invesknent assets Investment in¢orne and any Change in value of investtnent assets is recorded in income in the year in which it arises and as either restricted or unrestricted income xcording to the iernis or other restrictiODS applied to the individual endowment fund. ther incolne Income is received from a rdnge of activities including accommod*ion, ￿teTing ujnferences and other service5 rendered. Cambrid e B cheme In 2022-23, payneni of the Cambridge Bursarie5 to eltgible students was made direcily by the Student Loans Company -.ble students and the (SLC}. As a consequence. the College r¢imbursed the SLC for the fijll amount paid to their eli" College subsequently received a contribution frorn the Univetsity of Cambridge towards this payment. The llet paymeni of £123k is shown within the Consolidated Sw¢ment of colnp￿IktnslVc In¢ome and Expenditure as follows.. Income {see nole l).. Expenditure.. £66k £189k Pension sebemes The College participates in the Universities Sup¢rJnnuation Scheme. With effeci from l (ktober 2016, the scheme changed from a defined benefit only pension scheme to a hybrid pension scheme, providing defll)ed benefits (for all members). as well as d¢fined contribuiion benefits. The assets of the scheme are held in a Separa￿ trustee-administered fund. B￿aU)e of the mumal nature of the scheme. the assets are not attributed to individual institutions and a scheme- wide contribution rdte is set. The College is therefore exposed to a£￿ana7 risks associated with other institutions. eTnployees and is unable to identify its share of the underlying &￿tS and liabilities of the scheme on a con5lStent and reasonable basis. As required by Seciion 28 of FRS102 "Elnployee benefits- the College therefore a￿QuILIS for the scheTn¢ &$ if it were a wholly defmed contribution scheme. As a resulL the arnount charged to the profit and loss account represents the contributions payable to the %heme. Since the College has entered into an agreerneni {the Recovery Plan) that deterniine5 how each employer within the scheme will fimd the overall deficit, the College recognises a liability for the contributions p¥4y4bl¢ arise from the agreement (to the exient that they relate to the deficit) and therefore all expense is recognised. Th¢ College also contributes to the Cambridge Colleges Federated Pension Scheme, which i5 a similar defined b¢nefit pension scheme. Unlik¢ the UniveTSities Superannuation Schetne. this scheme has surpluses and deficits directly Page 23 MAGDALENE COLLEGE, CAMBRIDGE ST ATEMENT OF PRtNClPAL ACCOUliTING POLICIES (continued) YEAR ENDED 30 JUNE 2023 attributsble to indiyidual Coll¢g¢s. Pension costs are accounid for over the period during which the College benefits frotn the eTnployees' servi¢¢s. Becaus¢ of the mutual nature of the Church of England Funded Pension Scheme, the College is unable to identify its share of the underlying ossets and liabilities of each %heme on a consisient and reasonable basi5 and therefore accounts for the scheme a5 if it were a d¢fined contribution scheme. As a r¢sul¢ the amouni ¢harged to the Statement of Comprehensive Income and Expenditure represents the contributions payable to the scheme in respeci of the aeeounting period and expenses accrued in that year. plus any impacl of d¢ficit contribulions. Since the College has entered into a recovery plan that de￿M}ineS how each employer within the scheme will fvnd the overall deficiL the College recognises a liability for the contributtons payable thai arise from th¢ agreemeni ￿ the extent they relate to the dcficit and the resulting expense in the Stat¢m¢nt of Comprehensive kncomc and ExF¢nditure in accordance with Section 28 of FRS 102. The College offers a d¢fined contribution pension ￿h¢me for non-academic staff. For staff employed before l April 2014 this was the Catnbridge Colleges Group Pension Scheme. For staff employed after that date it is the NOW.. Pensions S¢h¢m¢. Th¢ assets of l)oih those d¢fin¢d contribution Schemes are held separnt¢ly frorn those of the College. The annual contributions payable are charged io the Ststement of Compr¢h¢nsive income and Expenditure. T8ngibl¢ fixed assets Land and buildin Fixed assets are stated ai d¢¢m¢d cost less accumulated depreciation and accumulated itDpairmeni losses. Costs incurred in relation io land and buildings after initia] purchase or conswctiO￿ and prior to valuation. are capitalised to the extent that they increase the expected filture benefits to the College. Freehold land is not depreciated as it is considered to have an indefmiie useful life. Freehold operational building5 are depreciated on a straight line basis over their expected useful lives &8 follow5= the stwcthte bettveen 41 and yea the internal fit-out beiwttn 15 and 35 years the mechanical and electrÉcal service5 betwttn 10 gnd 35 years Buildings under the tour5e of constyuction are valued ai COSL based on the value of 8￿hiteC￿. certificates and any other direct cost5 in¢urred. They are not depreciated until they are brought illto use. The cosi of additions to operational property shown in the balance sheet includes the cost of lan A review for impainnent of a fjxed &sset is carried ou¢ if events or ¢I￿1geS in cirCun￿¢eS indicate that the carrying alnount of the ftxed asset may not be recoverable. Maintenance of rernises The College has a five year rolling maintenance plan which is reviewed on an annual basis. The ¢o5t of routine maintenance is showTr in the consolidated Statement of Comprehensive Income and Expendiwre a% it Is incurred. The cost of major refijrbishmeni and maintenance which restores or improves value 15 capttalised and depreciated over the expe¢ted useful economic life of the asset ¢oncerned. The College also sets &side sums periodically to meet furure maintenance costs. these being disclosed within unrestrlc￿d reserv￿. ui Equipment costing le&8 than £5,000 per individua] item or gft)up of related items is written off in the year of purchase. All other equipment is capitalised and depreciated over their ex￿ useful life &8 follows.. Furnitttre and equipment Energy regeneration Librdry books Infomation te¢hnology Catering & conference equipment 10 year5 20 year5 15 yea[¥ 3 or 5 years 5, 10 or 20 years Page 24 MAGDALENE COLLEGE, CAMBIUDGE STATEMENT OF PIUNCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNF 2023 Where equipment is acquired with the aid of specific bequ¢sts or d￿ationS it is capitalised and depreci*ed. The related benefaction5 are ¢redit¢d to in¢ome in the year it arises. Herita e assets The College holds and conserves two book ¢ollections which are of historical and cultural importan¢¢. The majority of assets held in the College's collections were acquired before 1st July 1999 and, be¢ause reliable estimates of ¢ost or valuation are not available for these on a cost-benefit basis, they have not been capitalised. During the year ended 30 June 2023, the College was gifted two item5 of cultural irnWTlance: a bust and a 17 ¢entury spinet. These assets hav¢ been capiialised.. the bust at artual cost and the spinet the insuran¢¢ value has been take[] the deemed cost. Heritage assets are not depreciated since their long economic lift and high residual value mean that any deptrciation would noi 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 ihe College's balance sheet at Cost and eliminated on consolidation. Dir¢ct Investment prop¢rties are included ai fair valu*ion and the aggregate surplus or deficii is transfetTed to Unrestricted Rcs¢rv¢5. A formal Yaluation is perfornjed at leasi every 5 year5. For commercial property holdings, a forn)al valuation is undertaken every 3 years. and for the inteThening years regional yields published by third party property spe¢iali5ts. such as Knight Frank or Savills, for differing property uses is being adopted. A fornial valuation for agriculturdl land wa5 carri¢d out by FPD Savills ag * 30 June 2￿23. Stocks Stocks are valued ai the lower of CO￿ and realisable value. Employment btnefits Shon ierni employment benefits such as salaries and cOMpa￿led absences are recogDis¢d as an expense in the year tn which the eniployees render service to the College. Any unused benefirs are accrued and measured as the additional amount the College expects to pay a5 a result of the unused entitlemenL Provisions Provisions are recogni5¢d when the College has a present legal or consirucliv¢ obligation &% a result of a past evenL it is probable that a transfer of economic benefit will be required to settle th¢ obligation and a reliable estimat¢ can be made of the amount of th¢ obligaiion. Contingent liabilities and #ssets A contingent liability arises from a p&st event that gives the College a p05sibl¢ oblkgation whose existence will only be onfirmed b>, the ¢xcurrence OT otherwise of uncertain future events. Dot wholly within the control of the College. Contingent liabilities also artse in circumstances where a pmvision would otherwis¢ be made bui either it is not probable that an outflow of resources will be required or the amouni of the obligation canDoi be M￿Sured reliably. A contingent &ss¢1 arises where an event taken place that gives the College a trfJssil>le asset whose existence will only be ronfirmed by the occurrence or otherwise of uncertain fubjre events not wholly within the control of the Coll¢g¢. Contingent &Esets and liabiliiies are not recognised in the bo]ance theet but are disclosed In the noÉes. Financial instruments The College has elected to adopt Sections I l and 12 of FRS 102 in rest¢¢t of the re¢ognition. measurement and disclosure of financial instruEnents. Financial assets and liabilities are recognised when the College becomes party Page 25 MAGDALENE COLLEGE, CAMBRIDGE ST ATEMENT OF PRINCIPAL ACCOUNT1Tr4G POLICIES (conlinued) YEAR ENDED 30 JUNE 2023 to the contrdctual provision of the inslnunent and th¢y aff ¢I￿lfied according to the substance of the contrdctual arrangements entered into. A financial wet and a financial liability ar¢ offset onty when there is a legalty enforceable right to set off the recognised amounts and an intention either to settle on a net basi5, or to realise the asset and settle the liability simultsneously. Financial assets Basic financial assets include trade and other receivables. cash and cash equivalents and investments in ¢ommewial paper (i.e. deposits and bonds). These ￿ets are initially recognised at transaction price unless the arrangement constitutes a fu)ancing transaction, where the transaction is measured ai the present Value of the future receipts discounted at a market rate of inte￿$[. Such assets a￿ subsequenily carried at amortised cosi using the effective interest rate method. Financial assets ar¢ aswsed for indicatOTS of impairment at each reporting date. If there is objectsve evidence of impairn)enL an impairmeni loss is rwised in the Sthtemeni of Comprehensive Income. For financial assets carried at amortised cost the impaim)ent loss is the difference beNeen the canying amount of the asset and the present value of the estimated futtfft c&th flo￿ diswunted ￿ the asset's original effective interest rate. Other ffftancial assets, including investtn¢nts in equkty instnunents, whi¢h are not subsidiaries or joint ventures, are initially measured at fair value which is t￿l¢allY the transaction price. These assets are subsequently carried at fair value and chang¢s in fair Yalu¢ at the rewrting date are recognised in the Swement of Comprehensive Income. Where the investment in equity in5tNmenrs is not publicly traded and where the fair value cannot be reliably ￿easUr¢d, the assets ar¢ m¢asured at cost 1¢$5 impairn)ent. Investtnents in property or other physical &8sets do not constitute a fmancia] instrument and are not included. Financia] assets are de-recognised whell the rontradual rights io the c&5h flows from the asset expire or are Settled or substantially all of the risks and rewards of owneT5hip are tranSf¢￿ed io another party. Financial Liabilities Basic financial liabilitics include trdde and other payablo, bank loan5 and intergroup loans. These liabilities are initially recognised at transaction price unless the arrdngemeni constitutes a financing transaction, where the debt in5trum¢nt is measured at the present value of the fumre payments di%ounted at a market rate of inierest. Debi instruments are subsequently carricd at alnortised cost using the effKtive interest ￿te tnethod. Fees paid on the establishment of loan facilities are recognised as transaciion costs of th¢ Ii)an to the extent thai it is probable thai some or all of the facility will be drawn down. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If noL they are pr¢5¢nt¢d as non-current liabilities. Trade payables are recognised initially at transaction pri¢e and subsequently tneaswed at amortised cost using the effeciive inierest rate metho D¢rivaliv¢s, including forward f(Trr¢ign exchange contrdcts, ar¢ not basic fmancial in5trutn¢nts. Derivatives ar¢ initially recognised at fair value on the date the derivative contract is entered into and are subsequently re-measured at their fair value at ihe reporting date. Changes in the fair value of derivaiives are recognised in the S￿eMent of Compreh¢nsive IDcom¢ in finance costs or fmance tncome as appropriate, unless they are included in a hedging arrangement. To the extent that the College en￿r$ into forward foreign exchange wntracts which remain unsettl¢d ￿ the rep)rting dale the fair value of the contracts is revi¢wed at thai d*e. The initial fair value is measured as the transaction price on the date of inception of the wntracts. Subsequent valu&ions ate constdered on the basis of the forward rates for those unsettled contracts at the reporting d*e. The College does not apply any hedge accounting in respeci of forward foreign exchange contracis held to manage cash flow ex￿SUre5 of forec&si transactions den0￿Inated in foreign CUTTenoi¢s. Finan¢ial liabilities are de-recognis¢d when the liability is di%harged cancelle¢ or expires. Page 26 MAGDAI,ENE COLLEC.E, CAMBIUDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2023 Foreign eurrenty tr*RslgtRon Trdnsactions denomiTtated in foreign CUrre￿¢le5 are recorded at the rdte of exchange ￿lIng at the dates of the transartion. Monetary asset5 and liabilities denominated in foreign currencie5 are Iranslated inco sterling ai year end rates or, where there are related forward foreign exchange cOntrdc￿ at conttacted rdtes. The resulting exchange difference% are dealt with in the deierfflination of income and expenditure for the fll)ancial year. Taxation The College is a registered charity (number 1138143) and also a clwity within the meaning of section 467 of th¢ corpordtion T&x Act 2010. Accordingty. the College is exempi from tsxation in respect lo income or capitsl gains received within the categories covered by Sections 478 to 488 of the Corporniion Aet 2010 or Section 256 of the T￿atIon of Chargeable Gains Acl 1992 to the extrnt such income or gains are applied io exclusively charitable purposes. The College receives no similar exempiion in res￿¢1 of the Value Added Tay. Contribution under Statute G, 11 The College is liable to be assessed for Contribution under the provisions of Stsiuie G.11 of the University of Carnbridge. Contribution is us¢d to fimd grants to colleges from the Colleges Fund_ The College may from time to time be eligible for such grants. Th¢ liability for the year is as advisd io th¢ College by the University based on an assessable amount derived frotn the value of the College's assets as ￿ the end of the previous financia] yew. Reserves Reseryeg are allocated beNeen Testricted and unresthded reserves. Endowmeni resetves include balances which. in respect of endowTheni to the College. are held as P¢TTnanent fiThd& which the College must hold in peTpetuity. Restricted re5erYes include balance5 in respect of which the donor h&8 designa*d a specific p￿r￿)se and therefore the College is r¢5tricted in the use of these funds. Critical accounting ¢5timatU aDd judgtmeDts The preparation of the College'5 accounts requires rnanagement to make judgements, estimates and &ssurnptions that affect the application of accounting wlicies and reported amounts of assets and liabilities. income and expenses. These judgemenis. estimates and associated assumptions are based on hisiorical experience and other factors, including expectations of future events ar¢ believed to be reasonable under the cirwm51anc¢s. Th¢ resulting accounting estitnate3 will, by d¢finition, s¢ldom ¢qual th¢ Telated athal ￿Sults. Management consider the ar¢&s set out klow to b¢ those wh¢Te rrttica] accounting judgements bave been applied and the resulting estimates and assumptions may lead to adjuslments to the future ￿Ying amounts of assets and liabilities. reco ition Judgemeni is applied in d¢terniining the value and timing of ¢¢rtatn iTtcome items to be recognised in the accounts. This includes detemiining wh¢n perforfftance related conditions have met and detern)ining the appropriate recognition timing for donations, bequests and legacies. In general, the latter are reCo￿lsed when at the probate stage. Use￿1 lives of lant and ui Property, plant and equipment represeTJt a srg¢Jificant propMion of the College's tots] &ssets. Therefore. the esttmated useful lives can have a significant impact QD th¢ d¢preciatioD charged and the College's reported performance. Us¢fvl lives are detemiined at the titne the &%set is aquired and re￿eWed Tegularly for appropriateness. The lives are based o historical experiences with similaT a￿1$, profrs5iona] advice and antici￿lon of fijture events. Details of the caThying values of property. plant and equipment are shown in note 8 Investtnent Properties are revalued to their fair value at the rewfin8 date by using regional yields inforniation published by third party propertv specialists. Any valuation is based on the assumptions and judgements whÉch are influenced by a variety of factors including markei and other economic changes. Page 27 MAGDALENE COLLEGE, CAMBIUDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2023 Pensions FRS102 makes the distin¢¢ion beNeen a group plan and a multi-employer scheme. A group plan consists of a collection of entities und¢r common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entiiies not under common control and represents It)Tiically) an industy-wide scheme such as USS. The accounting for a multi-eTnplov¢r Scheme where the employer has entered inio an agreement with the scherne that deteTmines how the employer will fijnd a deficit results in the reCo￿llIon 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 a¢cordance with section 28 of FRS 10? The Governing Body is satisfied that the 5¢heme provided by USS and the Church of England Funded Pension Scheme meet the defmition of a multi-employer scheme and has therefore recognised the dÉscounted fair value of the cOntraCth￿ contnbutions under the fimding plan in existence at the date of approving the f￿ancial stsiements. All other accounting judg¢Tnents and esiimates 8r¢ detailed under the ap￿0p￿e ac¢owiling policy. Page28 >EPJ 4 OZD Omty>>- nn Ln4b tsj o* JOiOO NJ O) C mTri MAGDALENE COLLEGE, CAMB]UDGE CONSOLIDATED BALANCE SHEET YEAR ENDED 30 JUNE 2023 Note 202J 2022 £￿0 Non-currenl assets Fixed assets Heritage Assets Investments 8a 8b 105.100 264 101,345 206,709 106.650 178 93,931 200,759 CUr￿￿t assets Stocks Trade and other receivables Cash and ¢ash equivalents 10 191 2,762 189 1,551 12 6.947 8.088 Creditors: amounts falliTrg due withiD ODe year 13 Net current assets 3.155 4,753 Creditors: YlmOIIDl$ fslliDg due #fter mort thgD year 14 (6,012) (6.428) Provisions Pension provisions 15 (2.011) (1,969) Total net assets 201.841 197 115 Restricted reserves Income and expendiwre reserve- endowmenl re5erv¢ Income and expendittwe reserve- restricted reserve 16 17 74,423 8,360 82,783 71,352 79,426 Unrestricted reserves Income and expenditure r¢s¢rve- unrestricted 119.058 117,689 Totsl reserves 201.841 197 115 These fin&Dcial stateme beh ere approved by the Governing Body on 12 October 2023 and are signed on their CJG wood S J Morris Senior Bursar Master The notes OD pages 33 to 51 fortn part of these accounts Page31 MAC.DALENE COLLEGE, CAMBRIDGE CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 30 JUIYE 2023 2023 2022 £000 Note Net cash Inflowl(OMtnow) from oper*tlDg ¥4Ctiviti 18 (1,573) 488 C4$b flow5 from iDvestiDg activities 19 (121) 2,239 Cash flows frorn financing activities 20 (660) 1674) Inerea5el(decr¢ase) in easb ￿5h equivalents in the y￿r 2.053 Cash and cash equivalents at ￿ginnIng of the year Cash and cash equivalent5 at end of the year 6.348 4,295 12 The noies on pages 33 10 51 forni part of th￿C ￿￿Ounts Page 32 MAGDALEEYE COLLEGE, CAMBIUDGE NOTES TO THE FINANCIAL STATEMENTS YEAR EIYDED 30 JUNE 2023 Acadernie fees and ebarEes 2023 £000 2022 £000 Coll¢ge fees.. Fee income r¢c¢iv¢d at the Regulat¢d Und¢rgraduate rate Fee income received at the Unregulated Undergraduate rate Fee in¢(Trme received at the Postgrdduate rdte ,324 865 706 1,393 868 755 Res¢arch income Calnbridge Bursary scheme 96 65 98 Total 3,056 3,254 Income from 8ccomrnod*tititt, tatering attd eOllfereDees 2023 £0 2022 £000 Ac¢ommodation College members Conferences College Members Conferences 2.408 334 933 313 2,309 95 081 80 Catering Total 3,988 Endowment retmrn and investm¢nt Income 2023 2022 £000 Analysis Total return contribution (stt note 3b) Incomt from.. Freehold land and buildings Unit Trust Scheme Cash Deposits 1.491 1,207 2.737 2,457 105 38 Total 4.333 3b. Summsry of total retur 2023 2022 £000 Income from: Quoted and other securities and c&5h 1.372 1.232 G4in5 eDdowment •ssets: Quoted and other securities and cash 3,656 (2,967) Investment rnanagement Costs (5¢¢ note 3¢) Total returTh for year 214 4,814 223 (1,958) Total retum tronsferred to income and expendI￿re reserve (see note 3a} Unapplied tot81 return for year included within Ststement of Comprehensive Income and E%pendÉture Unapplied totsl return ¥41 iKginniTrg of year 1.491 1.207 3.323 19,461 (3.165) 22.626 Unapplied tot81 rel￿rn at end of yt•r 22.784 19,461 Page 33 MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENfs (continued) YEAR ENDED 30 JUNE 2023 3& Investment rnanagemeMt costs 2023 2022 Quoted security- equities Pooled investtnents Fixed interest securiti Investment managtmeDt costs included wÈthiD Ilote Jb Freehold Land and Buildings 214 223 214 223 66 74 Total 288 289 Education expenditure 2023 £000 2022 £000 Teaching Tutorial Admissions Research Scholarships and awards Other educational factliti¢S 2.525 804 665 731 856 274 2.167 651 551 618 251 Total (note 6) 5.855 Aceomrnodation. (attring and conference5 expenditure 2023 2022 £000 Accornm￿lott College member5 Conferences College members Conferences 3.688 625 1,335 625 3.259 319 905 330 c￿¢rIng Total (note 6) 6,273 4,813 8e34 MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FIIYANCIAL STATEMEiYfs (conlinued) YEAR ENDED 30 JUNE 2023 6a. Analysis of 2022r23 eIpenditure by 8cliYity Other op¢r8tiDg expellses Stsff costs (note 7) Depreciation £000 Total £000 Education (note 4) A¢¢ommodation, catering and conferences (note 51 InveSt￿ent managemeni costs (note 3c) Other expenditure Coniribution under Stathte G, 11 2,562 2.431 2.764 2.752 529 1,090 5,855 6273 288 779 19 288 1,057 19 251 27 1,646 Expenditure includes fundraising costs of £217k. This expenditure doe5 not include the costs of alumni rel*ions. 6b. Analysi$ of 2021122 eipenditure by activity Other operatÉDg expenses S¢•ff costs (note 7) Depreciation Total £000 Educaiion (note 4) Accommodation, catering and conferences (note 51 Investment management costs (notr 3c) Other expenditure Contribution under Stat￿e G. Il 2202 2.319 1.905 528 1,087 5,049 4,813 289 1255 16 289 ,523 16 241 27 Expenditure includ¢s fundraising costs of £209k. This ex￿)dIture doe5 Dot in¢lude the costs of alumni relations. Auditors remunerntion 2023 2022 £000 Other opeming expense5 include". Audit fees payable to College's external auditors 31 25 Page 35 MAGDALENE COLLEGE. CAMBRIDGE NOTES TO THE FINAIYCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2023 Staff Non- ac*detNics Ac*demic 2023 Total 2023 Total 2022 £000 2023 Si¥ff Costs Salarie5 National Insurante P¢nsion costs {not¢ 24) 971 3,520 274 258 4.491 358 395 3,629 308 327 137 1.192 Average stsff nuttyber Z023 Numberof FMII-time Fellows equKvslents 65 4.264 Average staff numbers (ful￿time equfv*leDts) Average staff number 1022 Number Full-tirne of Fellows equivalents 57 Academic Non-a¢ademics ioi 88 68 60 88 At the Balance Sheet date there were 43 members of the Governtng Body. During the year the numb¢r receiving remuneration was 40 who are included irt the 68 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- 2023 Number 2022 Number £ioo,00 i - £1 10.000 £110.001-£120.0(XI £120.001-£130.0 £130,001- £140.0(MJ £140,001- £150,000 £150,001- £160,(K)O Remuneration in¢ludes salary, employerfs national insurdnce contnl)UtiOTts, employels pension contributions plus any tsxable benefits either pai4 payable or provide(L gross ofany salary sacrifice arrangements. Key matsagetnent personnel Totsi 2023 £0( Total 2022 £0( Key management personn¢l are those p¢r50ns having authority and r¢sponsibility for planning. direciing and controlling the aciivities of the College. The key management personnel of th¢ College are therefore the twstees. The aggregated remuneration paid io key management personnel consists of salary. etnployer's nalional in5ufdnce contributi¢)ns. employer's pension contributloll5, plus any tsxable benefits either pai4 payable or provide(L gross of any salary sacrifa¢e arrang¢ments. 972 880 Aggregated remuneration The T￿￿teeS received no remuneration in their Cap￿lty as Tn￿CeS of th¢ Charity, these paym¢nts relat¢ to their capacity as College Offi¢ers. Page 36 > >z >.rnn>v >pr>>. rz MAGDALENE COLLEGE, CAMBRIDGF. NOTES TO THE FINANCIAL STATEIMENTS (continued) YEAR ENDED 30 JUNE 2023 8b. Fixed 5$5ets (continued) HeTitage assets The College holds and conserves two b￿k collection5 which are of historical and cultural itnportance. Thes¢ rotnprise the Pepys Library and the Old Library, which provide a valuable research and ¢ducational resou￿¢. In respect of thes¢ collections, the Coll¢ge's practice 15 to preserve, conserve and manage the iterns 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 io enable access to and engagement with the Pepys library wlle£tion of books by membets of the public. The College hold5 and Conserv￿ a collection of artsvork that is of culttLTal importanee. In respeci of this colle£tion, the College's practice is to preserve, conserve and manage the items in Éts care: to augtnent the collection where ppropriate and within the limited resources available: io enable and encourdge access to and use of the collection for teaching and reseawh,. and to enable access io and engagetnent with the Collcge's collections by members of thc public. The majority of assets held in the College's collections were acqtsired before 1st July 1999 and, because reliable estimates of cost or ValU￿1￿n are not available for these on a cosi-benefit basis, they have not been capitalised. During the year ended 30 June 2023. the College was gifted two items of culturdl importance.. a bust and a itr centiiry spinet. These assets have been capitalised.. the busi ai acitsal cost and the spinet the ingurnice value been taken as the deetned cost. Heritsge assets are not depreciated since their long economic life and high residual value mean that any depreciation would noi Ix matrrial. 2023 Total 2022 Tot&1 £000 109 Balance at beginning of year 178 Acquisitions gifted Acquisltions purchased Total ¢ost of acquisitions 82 69 69 At end of year 264 178 Investments 2023 Totsl £000 2022 Totsl £000 Balance ￿ beginning of year Additions Di5PQ5a15 proceeds Appreciation on revaluation Increase in cash balances held at fi￿d managers 93,931 15,370 (11,335) 3,184 195 92,474 2,950 (1,307) (189) Balance ai end of year 101.345 Represented by: Property Unit Trnst Scheme Other investtn¢nts Cash held for reinvesknent 43,422 6.763 50.160 43.894 4,698 45,339 101 345 93,931 Investsnenis held by the Coll¢ge also include an addilional £1 (2022: £1) investsnent in the subsidiary company at wst. {$ee not¢ 261 Page 38 MAGDALENF. COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2023 ID. Stocks 2023 £￿0 2022 £000 Goods for resale: Catering Fellows Wine Merchandise 24 157 10 29 150 10 191 189 I l. Trade and other receivables 2023 £000 2022 £000 Member5 of the College Rents Conferences Other receivables 144 797 127 1.694 114 20 706 2,762 .551 12. Cash and ¢85h equivalents 2023 £000 2022 £000 Bank deposiLs Current accounts Cash in hand 2,722 1,272 3.407 2,941 3,994 6.348 13. Creditors: falllng due within one ye8r 2023 2022 Bank loans Due to tradesmen and others Universiry fees Advance deposits- S￿dellts Caution money Contribution to Colleges Fund Other creditors Accruals and deferred income Deferred research income 470 1.299 37 463 209 19 470 777 566 206 16 145 983 55 1,062 67 Page 39 MAGDALENE COLLEGE, CAMBIUDGE NOTES TO THE FINANCIAL STATEMENTS (conlinued) YEAR ENDED 30 JUNE 2023 14. Creditors: #mounts falling due after more ¢h*n ODe year 2023 £000 2022 £000 Bank loans Fee deposits 5,405 607 5,875 553 6.012 15. Pethsion provisions CEFPS CCFPS uss 2023 2022 £000 £00 Balance at beginning of year 833 1.134 1.969 1.878 Movement in the year Current service cost including life assuratlce Contributions Other fll)ance cost Actuarial (gain) reCO￿lSed in Stat¢m¢nt of Comprehensive Income and Exp¢nditure Remaining ehange in balance sheei liabiliry recognised in SOCIE 16 31 32 82 (288) 38 98 (258) 70 913 (341) 29 133 133 (510) (i) BAI8Dce 4t eDd of ye8r 966 Page 40 MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2023 16. EndowtDent funds Restricted net assets relating to endowments are &8 follows.. Restricted Unrestricted permatteDt permanent endowments endowments 2023 Total 2022 Total £000 Consolidated Balance at begiDIiIDg of year Capital New donations and endowments Fund transfers In¢reaselldecrease) in market value of investments 29268 1,802 (1.168) 1.884 42,084 71,352 1,802 {1.168) 70,969 292 553 2,437 91 Balance at end of year 31.786 42.637 74,423 Analysis by type of purpose Fellowships Stud¢nt Hardship and Bursaries Postgraduate Scholarships Undergraduate Scholarships and Priz¢$ Travel Awards Music. Chapel and Choir sthdent Sports and Culture Library Funds Other Funds Corporate Capita] 11.345 7J14 6.198 1553 343 425 989 2.624 995 11,345 7,314 6.198 1.553 343 425 989 2,624 995 42,637 10,494 5,694 5,659 1,447 321 398 927 3.392 937 42,083 42.637 31.786 42,637 71.352 Analysis by assel Property L¢ss Bank loan Securities Cash 43289 (5.875) 5,188 35 43.289 (5,875) 36,974 35 43,761 (6.345) 33,902 34 31,786 Fund transfers during the year from restricied peTman¢nt endowments of £1,168k comprise £lm unresthcted legacy received i 2017118 and accumulated gaiDS on the legacy which had be¢D treated as pemianent Clldowment for the New College Library. In accordance with the tern15 of the Will, the unrestricted legacy h&% IKen transferred to unrestricted reserves. Page41 MAGDALENE COLLEGE, CAMBRIDGE IYOTES TO THE FINANCIAL STATEMENTS (Continued) YEAR ENDED 30 JUNE 2023 17. Restricted Reserves Reserves with restrictions as follows.. PernialleDt nspent and other restricted income Consolid*ted Capit*1 grants nspent Restricted expendable endowrnent 2023 Total 2022 Total £000 Balanee at beginning of year Capital A¢¢umulated income 13 5.026 5,039 4,224 2,626 6,850 3.035 13 5.026 8,074 New donations Fund transfer Endowment return transferred Other income IncreaselldecreJse} in rna￿et value of investm¢nts 86 1.394 1.480 1,836 19 817 132 (i) 95 58 212 212 (173) Trdnsfers {102) (595) (697) R¢lease of capittl fimds spent in year (100) (100) (260) Expenditure (588) (1.126) (1.714) (1,148) Balance at elld ofyear 3.248 8,074 CapÉtal AcCu]nulat￿ income (i) 5,113 5.112 5.039 3,248 (i) 5.113 8,360 8,074 Analysis of other rotrieted fund51donations by type of purpose Fellowships Student Hardship and Burstiri¢s Postgraduate S¢hvlarships Undergraduate Scholarships and Prizes Travel Award5 Music. Chapel and Choir Student Sport5 and Culnwe Library Funds New Library Funds Other Fund5 1,083 1,350 389 2271 624 311 797 53 3.354 1.974 700 981 112 59 54 78 780 268 3,366 1.512 787 1,045 135 59 59 52 72 43 154 14 967 781 268 3.248 8,360 8,074 Fund transfers during th¢ year from permanent and other restricted income and restricted expendable endowment of £697k comprised £433k unrestricted legacy received in 2019120 iniiially being treated a5 restricted, bul subsequently. in accordan¢e with the Wtll. transferred to unrestricted reserves. A fiuther trdnsfer of £162k beang in reSp￿t of correction of unrestrict¢d funds treated as restri¢ied in 2021122. £102k income from the uDrestricted legacy at note 16 was also tran5fetTed in th¢ year to unrestricted reserves. Page 42 MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THF. FINANCIAL STATEMENTS (continued) Y[4 AR ENDED 30 JUNE 2023 18. Re¢on¢ili&tion of coDsolid4ted surplu5 for the ye8r to Det tasb iDnow from opernting setivities 2023 £000 2022 £￿0 Surplus for the year 4,859 1,212 Adjustment for nott-eash Items Depreciation Investment income DecTeose in stocks DecTease in trade and other receivabl¢s Increase in creditors Movement in pen5LOll deficit {GainyI0ss on I￿v￿[nent Donated Heritage Assets Adjustment for investing or financing 4cttvitrs Investment income Interest paid 1,654 1.645 (2) (1211) 509 (92) (3,184) (82) 239 379 601 (3) (69) (4.214) 190 (3,726) 204 Net cash inflnw frorn operating aetiylties 488 19. Cash flows from investing activities 2023 £000 2022 £000 Investment income Non-current inyestsnent disposal Endowment funds invested Payments made to acquire non4urreni ￿ets 4,214 11,335 {15,563) (107) 3.726 .307 (2,762) (32) Total cash flows from investi￿% Aetivities 121 20. Cash nows frnm finaneing aetiviti¢s 2023 2022 £000 terest paid Repayments of amounts borrowed (190) (470) (204) (470) Total easb flows frorn fin8ncing activities 660 674 Page 43 MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2023 21. Con$olidated reconciliation analysiq of net debt At Juty 2022 Casb Aequl$itioDs Ne Other Flow$ & Dis￿$81 finallee non-cash leases changes Change5 i market v#lue 8Dd exchange ratss At30 June 2023 subsidiaries £000 Ca$b and cash equiv8l¢nts 6.348 (2J54} 3.994 Borrowings: amounts falling due withirt one year Unsecured loan5 Bank overdraft Obligations under fujance leases Derivatives (470) (470) (470) Borrowing5: Amounts falling due afttr more than one year Unsecured loans Obligation5 under fmanr¢ leases Derivatives (470) (5,875) 470 (5,405) (5.875) 470 (5,405) 1,881 22. Flttan¢ial Instr￿MeTh￿ 2023 £(￿0 2022 Financial a55ets Finan¢ial assets that ar¢ equity instnlments measure at ¢ost Ic55 impairnieni (hher investments Financial assets that are debt instnunents at amortisd cost Cash and cash equivalents Other debtors 56.921 50,037 3.994 2.697 6,348 1.423 Finan¢ial liabllitie5 Financial liabilities measure at amortised cost Loans Trade creditors Other Creditors 5,875 1.299 1.51)0 6,345 777 1,604 23. Capital commilments 2023 2022 £000 Capital Commitments at 30 June are follows.. Authorised and Contracted Page 44 MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENfs (con¢inued) YEAR ENDED 30 JLNE 2023 24. Pen$lon Schem Th¢ College participaies in three defin¢d benefii schemes and two d¢fined contribution schemes. The d¢fined benefit schemes are the Univer5iti¢s Superamiuation ScheTn¢ (USS), the Cambridge Colleges Fed¢rated Pension Sch¢m¢ (CCFPS) and the Church of England Funded Pensions Scheme ICEFPS). The deftned contribution schemes are the NOW". Pensions %hem¢ and the Carnbridge Colleges Group Pellsion Scheme. The detsils of the schemes are as follows.. Univtrsitieg Superannuation Scb¢me The latest available complete actuarial valuatton of the Retirement Income Builder is as at 31 March 2020 (the valuaiion date) and was carried out using the proj¢¢icd unit method. Since th¢ ins¢ithtion cannot identify its share of USS Retirement Income Builder (defined knefit) assets and liabilities, the followÉng disclosures reflect those relevani for those assets and liabilities as a whole. The 2020 valuation was the sixth valuation for the scheme under the seheme-specific funding regime introduced by the Pensions Aci 2(NJ4, which requires schemes to have sufficient and appropriatr assets to cover their technical provisions. Ai the valuation date, the value of the &5sets 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 financtal &ssumptions used in the 2020 valu*ion are described below. More detail is set out in the Statement of Funding Principles (uss.¢o.uklaTrKJut-Uslvaluation-and-fun(bn￿%tattMent-0f-fundlng-pTin¢lpjeS). CPI assumption5 Temi dependent raies in line with the difference betwe¢n the Fixed Interest and Index Linked yield curveg less". I. Ivo P.& to 2030. reducing linearly Ey O.IVfy P.& lo a long-terni differenc¢ of O.IVo p.& from 2￿0 Pension increases (subject to a fl(bor of ￿.)) CPI assumplion plus 0.05Yo Discount rate (fonvard rates) Fixed interest gilt yield curve plus.. Pre-rdtrement.. 2.75(*/• P.& Post reiirement.. l.owo P. The main demographic assumption5 used relate to th¢ mortality ￿umptiOns. The￿ assumptions are b&5¢d on analysis of the scheme's experience carried out part of the 2020 a¢tuarial valuation. The mortality assumptions used in th¢se figures are a5 follow5." 2020 v•luatio IOIO/o of S2PMA"lighf for males and 950/0 of S3PFA for females CMI 2019 with a sm(K)thing parameter of 7.5. an initial addition of 0.5% p.a. and long-iem improverneni rnte of l.V/o pa for male5 and 1.6Ph pa for f¢mal¢s Mortality base table Future improv¢ments to Page 45 MAC.DALENE COLLEGE, CAML BRIDGE NOTES TO THE FINALNCIAL STATEMEwfs (continued) YEAR ENDED 30 JUNE 2023 24. Pension Schemes toDtinued The ¢UTrent life expeciancies on retirement at age 65 8re.' 2023 24.0 25.6 26.0 27.4 2022 23.9 25.5 25.9 27.3 Males ¢urrently aged 65 (years) Females currently aged 65 (years) Males currently aged 45 (year5) Female5 currently aged 45 lyeaTS) A deficit recovery plan was put in place as part of the 2020 Valuation, which requires paynent of 6.20/0 of salaries over th¢ period l April 2022 until 31 March 2024, at which point the fdte will increase to 6.30/•. The 2023 deficit recovery liability reflects this plan. The liability figures have been pr(Mluced using the follow￿8 as5umpiions'. 2023 2022 3.3 IO/r* 4.45 /(* Discount rate Pension increases (CPI) 2.82V• Cgmbridge Colleges, Federated Pells1O￿ S¢htme The College operates a defthed benefit plan for the College's employtts of the Cambridge Colleges. Federated Pension Scheme. Th¢ liabilities of th¢ plan have been calculate4 at 30 June 2023. for the purtN)se5 of FRS102 using a valuaiion system d¢signed for the Management Committtt, acting as Trustee of the Cambridge Colleges. Fed¢rnied Pension Scheme, but allowing for the different assumpiions required under FRS102 and tsking fully into consid¢ration changes in the plan benefit stwcture and rnembership since thai date. The principal actuarial assumptions at the balance sbe¢t date were follows.. 2023 /• p.a. 5.20 3.35 3.40 2.80 2.05 2022 ./• p.a. 3.80 3.25 3.45 2.75 2.05 Discount rate [nc￿a$¢ in salaries Retail Prices Index (RPI) assumption Consumer Prices Index ICPI) assumption Pension Increases in paym¢nl (CPI M&x 2.5V(* P.&) The underlying mortality wumpiion is b&sed upon the standard thble known as S3PA on a year of bitth usage with CMI 2022 future improvement factors and a long-tem) r*e of fvwre improvement of 1.250/17 per annum, a standard Stnoothing factor (7.0) and no allowance for additional improvements (20?2.. S3PA with CMI 2021 futur¢ itnprov¢menE factor5 and a long-temi future improvement rdte of l ?5lJ/o per annutn, a standard smi)othing factor (7.0) and no allowance for addilional improv¢ments). This results in the following life expectancies.. Male age 65 now has a life expectsncy of 21.4 years {previously 21.9 years). Female age 65 now has a life expectancy of 23.9 years (previou51y 24.3 years). Male age 45 now and reliring tn 20 years has a life expectsncy of 22.6 years (pr¢viousty 23.2 years). Femal¢ age 45 now and reiiring in 20 years h&% a lif¢ expectsncy of 25.3 year5 (previously 25.7 years). M¢mbers are assumed to retire at their nornial retiremeni age (65) apart from in the (ollowÈng indicatrd t￿5.. Mal¢ FeJn8le Active Membets- ONion l Benefits tkfetred MemPKrs- Option l Benefits 63 62 Page 46 MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDF.D 30 JUNE 2023 24. Pension Schernes contlDued Allowance been Enade at reiiremeni for non-retired members to commute part of their pension for a lump sum on the b￿1$ of the current commutation faciors in these calculations. The amount5 recognised in the balance sheet as at 30 June 2023 (with compamive figures &5 at 30 June 2022) are as follows= 2023 2022 Present value of plan liabilities Market vallte of plan &ssets Net defined b¢￿er11 assevoiability) 15.587,216) (6,411.539) 4.541,875 5 578.193 1.045J41 833 46 The amounts to be recognised in profit and loss for the year ending 30 June 2023 (with comparative figures for the year ending 30 June 2022) are Ls follows.. 2023 2022 Current seryice cost Adtninistrntive expenses Interest on n¢t der￿ed benefii (assetyiiabilty Lossl(gain) on plan changes Curtailment {gainJaoss Totsl 15,918 31,732 15,918 24,593 40.514 Changes in the present value of the plan liabilities for the year ending 30 June 2023 (with comparative rig￿eS for the year ending 30 June 2022) are as follows.. 2023 2022 Present valu¢ of plan liabilitie5 * beginning of period Current servi¢e cost Employee c4)ntributions Benefits paid Int¢rest on plan liabilitie5 Actuarial losSe￿(gains) Lossl(gain) on plan changes Curtailment {gainyIoss Present value of pian liabilities *1 end ofperlod 6.411.539 8.101,861 (267,979) (275258) 238.594 143,367 (794,938) (1,558,431) 5J87216 6411.539 Changes in the fair value of ihe plan assets for the year endll￿ 30 June 2023 (with comparativ¢ figures for the year ending 30 June 2022) are &s follows: 2022 Market value of plan assets * beginning of period Contribution5 paid by the College Employee Contributions Bertefiis paid Adrninistrative expenses paid Interest OD plan assets Return on assets, less inierest included in Profit & Loss Market Yalue of piall assets at end of period 5,578,193 (30.700). 6.736.394 62,536 (267.979) (19.399) 206.86? 925.102 4,541 75 (275258) {17,942) 118.771 1046,308 5 578,193 ' an overpaid deficit reduction conknl>ution of £43,(K(I w&$ refunded to the College A¢tual return on plan assets 718240 927.537 Page 47 MAGDALENE COLLEGE, CAMBIUDGE NOTES TO THE FIYI ANCIAL STATEIMELYfs (continued) YEAR ENDED 30 JUNE 2023 24. PeDSROn Schemes continued The major ¢at¢gories of plan &ssets for the year endÈng 30 June 2023 (with wmparative figures at 30 June 2022) are as follows.. 2023 4W/o 38ty/ 2022 Equities Bonds & C&th Property Total 340/ 140A loo/. IIJO•/• The plan has no inv¢stm¢nts in property ￿Up1￿ by. assets used by or financial insknjments issued by the College. Analysis of the rerne&surem¢nt of the net defin¢d benefit liability recognised Other Comprehensive Inc4)me (OCI) for the year ending 30 JEme 2023 (with comparative figu￿ for the year ¢nding 30 June 2022) are as follows.. 2023 21122 Return on assets, less interest included in Pmfrt & Loss Expected 1¢s5 aett￿l plan expenses EX￿ri¢n¢e gatns and 105S¢5 arising on plan liabilities Changes in assumptions underlying the present value of plan liabilities Remea5urement of ntt defined benefit liability reco£nised ID OCI (925,102) (I.(M6,308) (3.481) {2,024) (353.138) (597.637) 1.148.076 2 156.068 133.64 Movement in net defined benefil asseV{liability) during the year ending 30 June 2023 (with comparative figures for the year ending 30 June 2022) are &5 follows: 2023 2022 Net der￿ed assetllliability) at beginning of yeaT Recowised in Profil and Loss Contributions paid by the College Remeasurement of net defined benefii liability recogni5ed in I￿] Net defilled benefit asseV(li4bility) at ¢Thd of year (833.346) (1.365.467) (47.650) (40.514) {30.700)' 62.536 133 645 1.045 41 833 an overpatd deficit reduetion contribution of £43,W) w&s refunded to the College Funding Policy A¢¢uarial Yaluations are carried out every three years on behalf of the Management Committee. acting &8 the Trustee of the Scheme, by a qualified independent actuary. The actyarial assutnplions underlying the actuarial valuation are different to th05¢ adopted under FRSIO2. The such actijarial valuattoll Wa5 as at 31 March 2020. ThT5 showed that the plan's assets were insuffici¢nt lo cover the liabilities on the fimding basis. A Recovery Plan has been agreed with the College. which ¢ommits the College io paying contribution5 to fund the shortfall. These deficit reduction contributions are incorporated into the plan's S¢hedule of Contributions dated 21 May 2021 and are as follows.. Annual contributions of not less than £48,974 perannum payable for the period to 30 June 2021 No contnljuiions thereafter. The College continued paying conknl>utions to 30 June 2022, the over-payment was refvnded in July 2022. These payments ar¢ subject to review following the next fijnding valuation. due &s & 31 March 2023. Page 48 MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (conlinued) YEAR ENDED 30 JUNE 2023 24. Pen5ioD Schemes eoDtinued Other Pension Schemes The College partieipates in three other pension schemes: NOW: Pensions Th¢ Colleg¢ apwkinted NOW: PensiOI]5 to provide its workplace pension scheme for its Tjoll-academic staff from I April 2014. NOW.. Pensions provid¢5 a def]ned contribution scheme which invests employer and employee contributions to provide a member specific fimd that will be converted into pension on the m¢mb¢r's retirement. There were cgntribution5 of £25k (2022.. £17k) outstanding at the year end due to NOW.. Pensions. Carnbridge Colleges Croup Personxl Pettslon Scheme The College offered a defined contrtbution pension scheme to its non-acadLYlliC Staff until April 2014. The pension cost for this scheme represents contributions payable by the College. plus the set-up costs. Ther¢ were tontribuiions of £2k (2022.. £2k} outstanding &s ai the year end due to the Combridge Colleges Group Personal Pension Scheme. Churcb of England Funded PeD$itillS Seheme Magdalene College (Cambridge) partieipates in the Church of Engl￿d Funded Pensions Scheme for stipenditiry clergy. a defined benefit pension scheme. This scheme is adminiMered by the ChU￿b of England Pensions Borf which holds the assets of the schemes separntely from those olthe ReswL5ibl¢ Bodies. Each participating R￿pOnSIble Body in the ￿hern¢ pays contribuiions ￿ a common contnbution rate applied to pensionable stipends. The %heTne i5 considered to be a multt-employer scheme as described in Sttiion 28 of FRS 102. ThTS means tt 15 not Possible io attribute the ScheTne's assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defmed contribulion scheme. A Yaluation of the Scheme is carri¢d out once every thrtt ye4rs. Th¢ m05t recent Scheme valuation completed wa5 arried out as at 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on &ssets of £2,720m and a funding tsrgei of £2.160m, as5¢ssed using the following wumption: An average discount raie of 2.7Vo P. Incre&se in pensionable stip¢nd5 of 2.8Vo p.a RPI inflation of 3.6/0 p.a. {and pension incrvdses ¢onsi5tent with this) Mortality in arcordance with 900/0 of the S3NA VL tables, with allowance for improvements in mortality rates in line the CM12020 extended rn￿¢] with a long-tern) annua] rwe of improvemenl of 1.5Q/o, a smoothing pardmeter of 7 and an initial addition to mortality improvements of 0.5Vfy P. Following the 31 D¢cember 2018 valuation. a deficit Yecovery plan w&$ 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. An interim reduction to deficit ¢ontributions to 3.2•/0 of pensionable stipends was made with effect from l April 2022. Following finalisation of the 31 December 2021 valuation, defi¢it contributions ceased with effect from l January 2023, since the Scheme w&s in surplus. As at 31 December 2020 and 31 December 2021 the deficit recovery conknbutions under the rewvery plan in forc¢ were a5 set out in the tsble below. For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme's rules. /0 of pensionable stipends Deficit repair contributions Jan-18 10 tkc-20 11.(p/ Jan-21 to De¢-22 7.1/ Page 49 MAGDALENE COLLEGE, CAMBRIDGE NOTF.S TO THE FINANCIAL STATEMENTS {con¢inued) YEAR ENDED 30 JUNE 2023 24. Pension Schemes eontinued Section 28.1 IA of FRS 102 requires agreed deficit recovery pa￿ents io be reCO￿lS¢d as a liability. However. as there are no weed deficit re¢ov¢ry payments from l January 2023 on￿￿ the balance Sheet liability as at 31 December 2022 is nil. The movement in the balance sheet liability over 2021 and over 2022 is sei out in the table below. 2022 2021 Balance sheet liability * l January Deficit contribution paÈd Remaining change to the balance shttt liability. (recognised in S(￿lE) Balance sheei liability at 31 tkcember 2,000 (l.O(M)) 4,000 {2.0(M)) * Comprises Ch￿Se in agreed deficit recovery plan and change in discount Tat¢ and assumptions betwttn year-end5. This liability represents the present value of the deficit contributions weed as at the accounting date and has been valued using the following assumptions. No as%umptlODs are needed for December 2022 there are no agreed defieit recovery payments going fotward. No price inflation a55umplion was needed for December 2021 since pensionable stipends for the remainder of the recovery plan were already known. Dec-22 Dee-21 Dec-20 Discount rate Price inflation la O.OO/o pa 0.20/0 pa 3.IO/vpa 1.6Q/o pa Increase to total pensionable payroll -1.50/0 pa The legal structure of the scheme is such that if another Responsible Body fail4 Magdalene College {C8mbridg¢) could become responsible for paying a share of that Responsible Body's pensiott liabilitie5. The lotsl pension cosi for the year to 30 June (see note D w&s as follows.. 2023 £000 206 (47) 236 395 2022 USS.. Contribution5 CCFPS.. Chargedl(Credited) to S(KIE Oth¢r Schemes 242 (47) 326 25. Related Party Trnn5aCtions Owing to the nature of the College's oper*ions and the comp)sition of the Gov¢rning Body, it Is inevitable that transactions will take place with organisaitons in whi¢h a Governing Body member may have an interest. All Iiansactions involving owi&itions in which a rnember of the Governing Wy may have an Int¢re￿ are conducted at arm's length and in accordance with the College's nonnal procedures. Th¢ College maintains a register of Inte￿Sts for all Governtng Body members and where any memtr¢r of the Governing Body has a material inierest in a College matter they are required io declare that fact. During the yfdr no f¢¢s or expenses w¢r¢ paid to Fellows in respect of the￿ duties as Tn￿¢¢5. Fellows are remunerdted for teaching. research and other duties within the College. Fellows ar¢ billed for any private catering. The TTUStees remun¢rdtion is oveTSttn by the Remuneration Committee. Page 50 MAGDALENE COLLEGE, CAMBIUDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2023 25. Related Party Transactions coDtiDued Th¢ salari¢5 paid to T￿￿te¢S in th¢ year are summarised in the tsble below: 2023 2022 From To £io.000 £20,000 £30,0(K> £40,(MM) £50.(MM> £60.( £70.0 £80.(KMI £90,0(XI £IOO,(M £iio,000 £120.IMX) Totsl £1 £io,(x)I £20.(x)I £30.(X)I £40.1H)I £50.(H)I £60,001 £70,001 £80,001 £90,001 £ioo,001 £iio.001 24 24 40 40 The iotal Tru￿et salaries were £758k for the year (2022: £&)2k). The trustees werc a]so paid other wxable benefits (including a￿lated employer National Insurance contrtbutions and employer contributions io pensions) which totslled £214k for the year (2022= £188k). The College has one trading subsidiary. Cloverleaf Limited which is consolid￿ed In￿ these accounts. Cloverleaf Limit¢d 15 lo￿/￿ owned by the College and is registered and operatiD8 in ￿gland #nd Wales. The College hos taken advantage of the eXem￿lOn within section 33 of FRS 102 not to disclose transactions with wholly owned grouped ¢ompantes that are relaied parties. 26. Principal 5ub5idi8ry &Dd a5￿cl*led undertaklttgs #ttd other slgnlfleant Investments Clw of sltares Holding Clov¢rleaf Limited Ordinary lo￿/0 The principal activity of the alxTrve company is the development of the grounds and buildings of Magdalene College. Cambridge. This company is included in these consolid*ed financial Sts￿ments. Page 51