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← The College Of St Mary Magdalene In The University Of Cambridge

2024-06-30-accounts

MAGDALENE COLLEGE CAMBRIDGE

REPORTS AND ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2024

Registered Charity Number 1137542

MAGDALENE COLLEGE, CAMBRIDGE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2024

Contents Page
Fellowship 2
Principal Officers and Professional Advisers 6
Report of the Governing Body 7
Statement of Public Benefit 14
Statement of Internal Control 17
Responsibilities of the Governing Body 18
Independent Auditors’ Report to the Governing Body 19
Statement of Principal Accounting Policies 22
Consolidated Statement of Comprehensive Income and Expenditure 29
Statement of Changes in Reserves 30
Consolidated Balance Sheet 31
Consolidated Statement of Cash Flows 32
Notes to the Financial Statements 33

Page 1

MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP YEAR ENDED 30 JUNE 2024

FELLOWSHIP

Governing Body (Trustees of the charity)

Sir Christopher Greenwood GBE CMG KC, MA, LLM N R Carroll, MA, MB, BChir J R Patterson, MA, PhD M E J Hughes, MA, PhD 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 Professor A L Du Bois-Pedain, MJur (Oxon) Professor 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 Professor M J Waithe, MA (Leeds), PhD C D Lloyd, MA (Kent) R L Roebuck, MEng, MA, PhD Professor A K Bennison, PhD (London) Professor L C Skinner, MPhil, PhD Professor E So, MEng, PhD, CEng Professor W T Khaled, MA, PhD A Ercole, MA, PhD, PG Dipl, MB BChir, FRCA T G Euser, MSc, PhD (Twente) J M Munns, MA (Durham), MPhil (Bristol), PhD, FRSA S A Bacallado, PhD Professor S Dubow, DPhil (Oxon) Professor S J Eglen, DPhil (Oxon) Professor J J Orr, PhD The Revd S C Atkins, MA Professor P J Lane, MA, PhD A Mills, DipABRSM, MA, BCL (Oxon), Barrister at Law (Gray’s Inn) E Gallo, MPhil, DPhil (Oxon) S Ravenscroft, MA (Nottingham), PhD J Patterson, MA (London), PhD (Manchester) (to 30 September 2023) C Whitely, MPhil (London), PhD (LSE) (to 31 August 2023) Professor K Okkenhaug, PhD (Toronto, Canada) Professor L G Fisher, MA (St Andrews), PhD A Bryan, MA (York), PhD (London) (from 1 September 2023) J Hauge, PhD (from 1 December 2023) Z Bond, MEng, MA, PhD (from 1 January 2024)

Page 2

MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP (continued) YEAR ENDED 30 JUNE 2024

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 K Patel, MA, MSc, PhD (Essex) Professor T Spencer, MA, PhD

Junior Research Fellows

A Baez-Ortega, PhD (to 30 September 2023) D Dunkelmann, MSc (Zurich), PhD P Asimov-Hofmann, AB (Brown), MSt (Oxon), PhD H Marshall, MA (Brown), PhD B Peng, MSc (Fudan, China) G Giovannetti-Singh, PhD (from 1 October 2023) M-R Ivan, PhD (from 1 October 2023)

Senior Research Fellows

P M Steele, MPhil, PhD A Neumann, MA, PhD Professor F Aigbirhio, MA, DPhil, CChem, FRSC Professor D A S Fergusson OBE, MA (Glasgow), BD (Edinburgh), DPhil (Oxon), DD, FBA, FRSE (to 30 September 2023) T Licence MA, MPhil, PhD, FHEA, FRHistS, FSA S Caputo, MSc (Edinburgh), PhD A Lefauve, MSc, PhD Professor A Fialkov, MSc, PhD (Tel Aviv, Israel) A Baez-Ortega, PhD (from 1 October 2023) Professor G Neff, M Phil PhD (Columbia) (from 1 October 2023)

Life Fellows

M D Billinge, MA, PhD A R Thompson, MBE, MA, MPhil Professor T H Clutton-Brock, ScD, FRS S Halper, PhD Professor E H Cooper, LittD, FBA Professor E Rothschild CMG, MA Professor J R Raven MA, PhD, LittD, FRA M C Skott, PhD

Page 3

MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP (continued) YEAR ENDED 30 JUNE 2024

Bye-Fellows

V Vitaliev, MA (Kharkiv), PhD (Moscow) (to 30 September 2023) C MacKenzie, PhD (ANU, Australia) Z Bond, MA PhD (to 31 December 2023) R Hall Maudslay, MEng (to 30 September 2023) M-R Newis, MPhil (to 30 September 2023) J Hauge, PhD (to 30 November 2023) N Bridson-Hubbard, BA, MPhil (from 1 October 2023) F Rigby, MPhys (Durham) (from 1 October 2023) A Pesci, PhD (La Plata) (from 1 October 2023)

Honorary Fellows

HRH the Duke of Gloucester KG, GCVO, MA Professor Sir John Boardman, MA, FBA, Hon RA (deceased 24 May 2024) Professor Sir David Hopwood, MA, PhD, DSc (Glasgow), FRS Professor H H Vendler, AB, PhD (Harvard), Hon Litt D (deceased 23 April 2024) 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 (deceased 7 November 2023) 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) 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 A Schultz, MA P Carne MBE HonRCM, MA (from 2 November 2023)

Page 4

MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP (continued) YEAR ENDED 30 JUNE 2024

Visiting Fellows

Professor A Orellana, PhD (CU Chile) (from 17 April 2023 to 31 July 2023) Professor C Whelan, MSc (Ireland), PhD (from 17 April 2023 to 31 July 2023) Mr D Mulhall, MA (Cork, Republic of Ireland) (from 1 October 2022 to 30 September 2023) Professor M Kelleher MRIA, PhD (Boston) (from 1 October 2023 to 30 September 2024) Professor P Adler, MA, JD (Virginia) (from 5 January to 24 March 2024) Professor S Liu, MSc, PhD (UCL), (from 5 January to 24 March 2024) Professor V Nesiah, BA (Cornell), SJD (Harvard) (from 5 January to 24 March 2024) Professor I Pikirayi, MA (Zimbabwe), PhD (Uppsala) (from 5 January to 25 June 2024) Revd R MacSwain, MTh (Edinburgh), PhD (St Andrews) (from 1 April to 31 July 2024) Professor C Whelan MSc (Ireland), PhD (from 17 April to 25 June 2024)

Fellow-Commoners

R L Skelton, MA A I J Fitzsimons, Diplômée de l'ISIT (Paris) J J Hellyer Jones, MA, FRCO 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 Professor C V S Brasted-Pike, MA, MSci, PhD H Critchlow, PhD L Masuda-Nakagawa, PhD (Tokyo) F Schuery, MA C N Spottiswoode, PhD J M Potter, MA (Oxon) V Vitaliev, MA (Kharkiv), PhD (Moscow) (from 30 September 2023 to 30 September 2024) Professor D A S Fergusson OBE, MA (Glasgow), BD (Edinburgh), DPhil (Oxon), DD, FBA, FRSE (from 1 October 2023) M Thompson, MA PhD (from 1 October 2023) R Calvocoressi CBE, MA (Oxon) (from 1 December 2023)

Page 5

MAGDALENE COLLEGE, CAMBRIDGE PRINCIPAL OFFICERS AND PROFESSIONAL ADVISERS YEAR ENDED 30 JUNE 2024

Address
Magdalene College
Cambridge
CB3 0AG
Officers
Master: Sir Christopher Greenwood GBE CMG KC, MA, LLM
President: Professor B J Burchell, MA and PhD (Warwick) (until 30 September 2023)
N R Carroll, MA, MB, BChir (from 1 October 2023)
Senior Tutor: Professor 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
Cazenove Capital
1 London Wall Place
London EC2Y 5AU
Troy Asset Management
33 Davies Street
London W1K 4BP
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 2024

The Governing Body of Magdalene College presents its Reports and Accounts for the year ended 30 June 2024.

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 2024

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 reviewed relevant policy proposals during the financial year. 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 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.

PROGRESS MADE DURING THE YEAR

The College has worked hard to support its students via its supervision and tutorial systems, further expansion of mental health and welfare services, and through its vibrant community.

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. Undergraduate students have performed well in their 2024 examinations with over half of students obtaining a 2:1 or better and of the cohort of graduating students, 88% achieving a first or 2:1.

The college re-started its plans to restore and improve the Samuel Pepys building some years ago in order to undertake a substantial refurbishment of the building and over the course of 2023-24 preparations have advanced. The project will deliver much needed maintenance to the grade I listed building as well as physical access improvements for visitors to the Pepys library.

Inflationary pressures have eased, particularly for food and energy, however the cost of employment continues to rise at a faster rate than college income and thus the college is continuing to run an operational deficit.

Economic conditions and political uncertainty prior to the general election led to a slowing in the commercial office sector and there are on-going challenges for the hospitality sector, both areas that the college has exposure, and this has led to the commercial property portfolio having voids and reduced income.

Page 8

MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2024

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/(loss) on pensions
Total Comprehensive Income		 2024
£000
15,053
(13,669)
1,384
1,108
44
2,536		 2023
£000
15,167
(13,492)
1,675
3,184
(133)
4,726		 % Change
-0.7%
+1.3%
-17.4%
-65.2%
+132.8%
-46.3%

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 decreased slightly by 0.7% when compared to the previous year. Although there has been a continued recovery of conference business and in investment income, lower new endowment donations have given static total income. Expenditure on education provision, accommodation, catering and conferences all increased mainly due to staff costs. This increase in expenditure was partially offset by a significant accounting change in the USS pension provision. Donations in the year related to a combination of student support, research and the Pepys Building restoration project. Market value gains on securities were partially offset by valuation losses in commercial property that is directly owned by the college.

Income from academic fees was stable overall but with a slightly higher proportion of undergraduate unregulated fees compared to income from regulated fees. There was a modest increase in postgraduate fee income. Finally, there was an increase in research activity and financial support from the University contributing towards the Cambridge Bursary Scheme increased.

Income from College-provided accommodation and catering was £4,817k (£3,988k for 2022-23), an increase of 21% on last year. College member accommodation and catering income both exceeded expectations and are now more than prepandemic. Conference revenue, although slower to recover from the pandemic did reach 96% of pre-pandemic income.

Page 9

MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2024

Total investment income increased by 3.4% to £4,360k (£4,214k previous year) and actual income from securities and other investments grew by 7.1%. The policy spending rate on a total return accounting basis remained at 3.25% for 2023-24 although it will be reviewed during the course of 2024-25. Rental income from the commercial property estate reduced by -2.5% with challenging market conditions and void units.

Total donation income was £2,422k (£3,727k for 2022-23), reflecting continued generous donations in support of student welfare and financial assistance, a large research related gift and substantial donations towards the Pepys Building restoration project.

Expenditure

Expenditure on education related activity increased to £6,249k (£5,855k previous year), which compares to £2,978k received (£2,895k previous year) directly from academic fees, providing a calculated education deficit on activity of £3,271k (£2,960k previous year). Education activity derives from an increase in teaching costs, and predominantly an increase in the cost of providing supervisions following agreed increases across the collegiate university. The increase in tutorial related costs directly reflects continued investment in student mental health and wellbeing. The increase in admission costs is due to more Widening Participation activity during the year. In total expenditure on education accounts for 45.7% (previous year 43.4%) of total expenditure.

Expenditure on College-provided accommodation and catering increased to £5,560k (£5,023k previous year). Other operating costs increased by 7.5% broadly in line with greater conference activity.

Total staffing costs increased by 7.8% over the previous year and amounting to £5,651k (£5,244k previous year), after adjusting for the change in USS pension deficit recovery provision contributions, and 41.3% of total costs (38.9% the previous year). Although there has been a modest easing of the tight labour market compared to the previous year, staff retention has improved and the College has proven able to recruit to vacancies when needed, the costs of employment are still rising faster than income. The College followed the pay award for the higher education sector for its employees. During the year, the College also paid a discretionary bonus to staff.

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 overall decrease in the FRS 102 pension deficit, which has reduced to £1,054k (£2,011k 2022-23), whilst the deficit for CCFPS has increased, the USS pension scheme’s deficit is completely eliminated. The USS pension provision accounting adjustment is included in the Consolidated Statement of Income and Expenditure Account.

Depreciation costs for operational buildings increased to £1,744k (£1,646k previous year), reflecting the college’s depreciation policy.

College net assets increased slightly from £201.8m to £204.3m or by 1.3% at the end of the year. Endowment values increased due to generous donations and positive market movements, and there is an increase in cash held pending further investment and finally there are lower defined benefit pension scheme deficits.

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 limited capital expenditure (separate from building maintenance) in the year while the programme concentrated on significant maintenance projects. Effects from the pandemic continued to reach into the maintenance programme to a more limited degree at the start of the year and significant progress has been made on improvement projects planning. The College commissions a rolling condition survey of its operational estate which informs its forward-looking five-year maintenance plan. Other significant survey planning has been undertaken to inform improvements in fire prevention in the operational building stock. 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.

Page 10

MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2024

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. The Governing Body approved a Statement of Investment Principles, which clearly sets out the investment objectives, risk appetite and responsible investment policy. 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 a responsible investment approach and to align with the principles of the UN Compact.

The College holds a securities-based portfolio which was valued at £62.4m (£56.4m previous year). Its principal fund manager is Baillie Gifford (managing £40.8m in 2023-24 and £37.0m 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 agricultural land holdings (£39.7m in 2023-24). 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, maintained the total return policy of 3.25% spending rule and this resulted in a drawdown (from capital and income) of £1,632k (£1,491k in 2022-23). The unapplied total return fund provides a contingency sum in the event of falling capital values in financial markets and thus permits drawn down in adverse market conditions. The investments committee agreed to review the spending rule over the course of the next year.

The College has been generally pleased with the performance of the endowment although weakness in the property market had proved painful, with lower capital values and income is decreasing with voids in the portfolio.

Directly held commercial property returned -4.3% in the year (3.6% 2022-23), whilst the Charities Property Fund returned +0.6% against the Index average of +0.1% for the same 12-month period, but over a 6-year average returns were 4.1%, 3% and 1.6% respectively. It should be noted the directly held property is only externally valued periodically.

The Baillie Gifford Responsible Global Equity Income fund performed well with a net return of +12.5% and a sector average return of 12.8%, but this was against a market Index of +20.6%, the latter buoyed by strong AI technology stocks. The combined portfolio of Cazenove Capital and Troy Asset Management performed adequately at +5.9% against a composite benchmark of +8.6%. A £1m fixed term (9 month) deposit was, on maturity, re-invested and placed on another fixed term deposit to maximise returns on cash as interest rates remained strong.

During the year the College increased its investment in the University’s endowment fund by£1m and a provisional year end valuation of the holding being c.£8.1m; performance was 9.1% for the year to June 2024.

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. Fundraising efforts for the year yielded nearly £1m towards teaching and research, £700k in support of the Pepys Building restoration project and a further £393k towards student support. The College is truly grateful for the generous response, enthusiasm for and support of the College’s fundraising efforts.

The ongoing support of our Members, friends and the Fellowship is particularly welcome and appreciated during these trying economic times. Over the course of 2023-24, donations to the College exceeded expectations with a continued focus on student support, teaching and research, and the Pepys Building restoration project. Despite the difficult

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MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2024

economic climate, the 2024 Telephone Campaign raised in excess of £200k, a figure over expectations. The College is grateful to its members and supporters. The costs of fundraising efforts were £265k (£216k for 2022-23).

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

Reserves, Endowment Funds and Associated Policy

Total College reserves and funds amounted to £204.3m. 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 £4.8m.

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		 £119.5m
(£103.8m)
(£ 1.1m)

£ 14.6m
£ 4.8m

The college’s major designated reserves relate to student support (£2.4m), operational buildings (£3.2m), commercial property (£1.4m), and a major capital projects reservice (£5.7m). The college is expecting to draw down on its reserves over the course of the next few years.

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 £1,811k, from £3,994k to £5,805k over the year. Cash levels at the year end reflect an influx of donations in the final quarter of the year which will be placed in long term investment into the endowment.

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. 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

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MAGDALENE COLLEGE. CAMBRIDGE REPORT OF THE GOVERNING BODY (conlinued) YEAR ENDED 30 JUNE 2024 College o￿leerS and the Finance & Generdl Purposes Committee. and then final consideration by ihe Governing Body. As far as is praclical the College then takes uddilional Tnca5urc5 lo mitigalc kcy risks and where apptopriate insurance cover is put in plaee. Nevertheless. the College is exposed io a variety of significant risks. Presenily the known principal risks include.. Significant harn] to the reputation of the College as a consliiuent pan ofthe collegiaie university The long-tertn impact of climate change and the need to transition lo a low carlM)n campus with wide ranging sustainable policies The risk of cyber-attacks and unauihorised access to prolecied digital data Adverse performance of financial Inaike¢s and the real economy which would in-bjrn impact on ihe College's endowm¢nl assets and oiher incorne str¢ams The causal effeu of ihe global pandemic and consequential societal r¢stri¢tioTrs and the shorter-terni disruption to global supplies of goods. services and labour and iniernational travel The cost of employee defined benefii pensions schemes Significant unexpected expendiwre on building mainienance Rapid changes in inflation across all expenditure heads The impact of government policy on College income and individual student fjnances The strategi¢ impa¢t of government policy and any a550ciated regulatory burden on College academic policy and governance arrangements Adverse evenis impacting on the College's academic slanding of the college The fomines of the local cconomy in ternis of demand for commercial property in Cambridge The challenges of the local trknsportatioll system and its implieations for r¢¢Nitment and retention of employees The on-going impact on the econom). and supply chains of inflaiionary pressures and the Russian invasion of Ukraine. The10¢81 labour market and Ihe ability to altracl and retain slaff The College through its own financial planning and operational management aims to mitigaie ihe impact or set aside resources in the event of such risks thking place. Across the colleg1￿e university the University and the colleges work collectively to identify and manage common risks and share steps to manage known risks. FILYANCIAL OUTLOOK AND PLANS FOR THE FUTURE Looking forward the financial outlook for the college remains challenging. Inflationary forces have eased, particularly for food and energ},. bul they are stubbomly high for labour and building costs. Although Cambridge is a strong regional economy it is still feeling the economic impact of inflation and relatively low business confidence, with high interest rates slowing demand. For commercial property demand for o￿lee space remains slow. with demand being mainly derived from o￿lCe relocalion rather than business expansion. and the pressure on the hospitality sector remains high. The College has had to set another deficit budgei in 2024-25 whtch aims to give ihe college time to review and if necessary reshape 50me of 115 expenditur¢ without impacting on general services and college life too severely as well a5 trying to grow college income. particularly commercial property and conferences revenues. Student mental health and welfar¢ a￿ a sector and university wide priority with further resource5 being inve51ed across the colleges and the university. The eollege will advance its preparations for a major capilal projecl restoring and improving the Pepys building which is expected lo commence in summer 2025 and will also focus on its buildings fabric and infrastructure. The college is also refurbishing some vacant office space in its Quayside development on a pre-let basis. These major projects will draw on designated reserve funds over ihe coming years. The college plans lo advance ils long lernj suslainabiliry plans lo reduce its impact on the environment. Approved b he Governing Bo 17th Odober 2024 C J Greenw Master S J Morrls Senior Bursar Page 13

MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PUBLIC BENEFIT YEAR ENDED 30 JUNE 2024

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 367 (2023: 372) undergraduate and 154 (2023: 151) 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 2024

Gallery

The Robert Cripps Gallery, which is incorporated into the New Library building, provides a programme of open and free to access exhibitions throughout the year, In particular the gallery provides an additional high quality facility to the local community. During the course of the year there were 1,382 (2023:1,464) visitors to the gallery.

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 2023-24, the number of awards made was 78, out of a Home/EU undergraduate population of 297; 34 of the awards were at the maximum value of £3,500; and the average value of the awards was £2,574.) 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 2023-24 the College was able to support 28 undergraduate students through this enhanced bursary scheme and a further 2 third year undergraduates were assisted through the Carne MML Fund during their year abroad element of their studies.

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PUBLIC BENEFIT (continued) YEAR ENDED 30 JUNE 2024

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 £419k from these schemes.

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. Total travel awards made in 2023-24 were £35.4k

The Governing Body approved annual prizes and scholarships for undergraduates obtaining outstanding examination success. For 2023-24 114 students were awarded a prize or scholarship, the total cost was £38k.

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 £27.6k for the year.

Access

The College continues to engage high-achieving pupils from across the UK in a variety of in-person and online outreach activities. In the 2023/24 academic year, over 8,000 pupils attended targeted outreach events, plus a further 6,000 attending Open Day events. Magdalene hosted 6 residential programmes, 47 school visits to College, and 68 external school visits in Merseyside, North Wales, and the Isle of Man. 15% of UK-based applicants to Magdalene in 2023 (for 2024 entry) had attended one or more of our outreach events in the year leading up to their application.

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 2024

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 2024 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 2024

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 2024

Opinion

We have audited the financial statements of Magdalene College, Cambridge (the ‘College’) and subsidiary (‘the Group’) for the year ended 30 June 2024 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 2024

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 18, 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 INDFPENDENT AUDITORS, REPORT TO THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2024 legislation. We assessed the required compliance wilh these laws and regulations a5 part of our audit procedures on the related financial statement item5- in addition, we considered provisions of other laws and regulalions that do not have a direct efTe¢t on the financial staiemenls but compliance wilh which mighi be fundamenial to the College's and Ihe Group's ability lo operate or lo avoid inaterial penalty- and identified laws and reg￿latiOnS were communicated within the audil team regularly and the team remained alert lo insiances of non-compliance thioughoul the audit. We assessed the susceptibility of Ihe Group's financial statements lo material misstatement, including obtaining an understanding of how fraud might occur. by= making enquiries of management as lo where ihey ¢onsider¢d ther¢ was sus¢¢ptibility to frau4 their knowledge of actual, suspected and alleged fraud" and considering the iniernal controls in place lo mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and ove￿Ide of controls, we" lesled joumal entries lo identify unusual trnnsa¢lions- a55e55ed whether judgemenis and assumptions made in deterniining the accounting estimates set out in the accounting policy were indic￿1Ve of ￿tentIal bias. and investigated Ihe Tationale behind 518nificani or unusual transa￿lon5. In response to the risk of [￿egulaTItIes and non-complianre with laws and regulations. we designed procedures which included, but were not limited io.. agreeing financial stsiement disclosures lo underlying supporting documentation- reviewing minutes of me¢lings of those charged with governance- enquiring of managemenl as lo actual and poteniial litigation and ¢lairns' and reviewing correspondence with relevant regulators and the Group's legal advisors. There are inherenl limitalions in our audit procedures described above. The more refflov¢d that laws And regulations are from f￿ancial transaction5, the less likely il 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 io enquiry of ihe Trustees and oiher management and the inspection ofregulatory and legal correspondence. if any. Material missiat¢ments that arise due io fraud can be harder io detrci ihan those ihai arise from ernr as they may involve deliberdte ¢oncealment or ¢ollu5ion. A further description of our responsibilitie5 for the audil of the financial 5¢atements is lo¢ated on the Financial Reporting Council's websiie at.. www.frc.org.uklauditorsresponsibilties. This description fonns part of our auditors, report. Use of our report This report is made solely (o the College Inisttts, as a body, in accordance with College's slalules, the Statutes of the University of Cambridge and ihe Charities Acl 201 l. Our audit work h&5 been undertaken 50 thal we mighi state to the Gov¢ming Body those matters w¢ are required io siaie io them in an Audiiors, Report and for no other putpose. To the fullest extent perniitted by law. we do not accept or assume responsibility to anyone oiher than the College and the Coll¢ge'5 Governing Body as a body. for our audit work. for this r¢port. or for th¢ opinions we have fornied. PETERS ELWORTHY & MOORE Chartered Accounlani5 and Statutw Audiiors Salisbury House, Siation Road. Cambridge CB12LA 18 October 2024 Peters Elwonhy & Moore is eligible lo acl as an audilor in 1¢￿S of section 1212 of the Companies Act 2006. Page21

MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES YEAR ENDED 30 JUNE 2024

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 7.

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 also set a detailed budget plan for the 2024-25 financial year and outline budgets up to financial year end 2027. 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 27.

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 2024

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 3.25%, 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 2023-24, 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 £129k is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows:

Income (see note 1): £92k Expenditure: £221k

Pension schemes

The College participates in Universities Superannuation Scheme. The assets of the scheme are held in a separate trusteeadministered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide 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 FRS 102 “Employee benefits”, the College therefore accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme and the deficit recovery contributions payable under the scheme’s Recovery Plan.

Where a scheme valuation determines that the scheme is in deficit on a technical provisions basis (as was the case following the 2020 valuation), the trustee of the scheme must agree a Recovery Plan that determines how each employer within the scheme will fund an overall deficit. The College recognises a liability for the contributions payable that arise from such an agreement (to the extent that they relate to a deficit) with related expenses being recognised through the income statement. Further disclosures relating to the deficit recovery liability can be found in note 25.

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2024

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 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 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 2024

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. There were no additions to Heritage assets during the year ended 30 June 2024. 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 undertaken every 3 years, and for the intervening years regional yields published by third party property specialists, such as Knight Frank or Savills, for differing property uses is being adopted. The last formal valuation for agricultural land was carried out by FPD Savills as at 30 June 2023.

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

Page 25

MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2024

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 26

MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2024

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 9a.

Investment property

Properties are revalued to their fair value at the reporting date by using regional yields information published by third party property specialists. Any valuation is based on the assumptions and judgements which are influenced by a variety of factors including market and other economic changes.

Page 27

MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2024

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 28

MAGDALENE COLLEGE, CAMBRIDGE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE YEAR ENDED 30 JUNE 2024

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
6
Change in USS pension deficit recovery provision
contributions
7,16
Contribution under Statute G, II
Total expenditure
7
Surplus/(deficit) before other gains / losses
Gain/(loss) on investments
9
Surplus/(deficit) for the year
Other comprehensive income
Actuarial gain/(loss) in respect of pension schemes
16
Total comprehensive income for the year
Unrestricted
£000
3,109
4,817
2,724
597
202		 2024
Restricted
£000
Endowment
£000


92
-
-
-
167
1,469
1,035
(1,632)
51
-
1,345
(163)
1,877
-
-
230
-
-
3,222
67


1,549
-
139
-
-
192
114
-
-
-
-
-

1,802
192
1,420
(125)
281
562
1,701
437


-
-
1,701
437		 Total
£000

3,201
4,817
4,360
-
253
12,631
2,192
230
-
15,053

6,249
6,902
262
1,183
(952)
25

13,669
1,384
1,108
2,492

44
2,536		 Unrestricted
£000
2,990
3,988
2,771
550
155
10,454
364
-
81
10,899
4,374
6,135
74
1,085
(123)
19

11,564
(665)
202
(463)
(133)
(596)		 2023
Restricted
£000
Endowment
£000


66
-
-
-
71
1,372
941
(1,491)
27
-
1,105
(119)
1,381
-
-
1,802
99
-
2,585
1,683


1,481
-
138
-
-
214
95
-
-
-
-
-

1,714
214
871
1,469
212
2,770
1,083
4,239


-
-
1,083
4,239		 Total
£000
3,056
3,988
4,214
-
182
11,449
315
-
-		 11,440
1,745
1,802
180
11,764 15,167
4,700
6,763
70
1,069
(952)
25		 5,855
6,273
288
1,180
(123)
19
11,675
13,492
89 1,675
265 3,184
354 4,859
44 (133)
398 4,726

The notes on pages 33 to 52 form part of these accounts

Page 29

MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF CHANGES IN RESERVES YEAR ENDED 30 JUNE 2024

Balance at 1 July 2023
Surplus/(Deficit) from income and expenditure statement
Other comprehensive income
Release of capital funds spent in year
Transfers
Balance at 30 June 2024
Balance at 1 July 2022
Surplus/(Deficit) from income and expenditure statement
Other comprehensive income
Release of capital funds spent in year
Transfers
Balance at 30 June 2023		 Unrestricted
£000
119,058
354
44
-
(6)
119,450
Unrestricted
£000
117,689
(463)
(133)
100
1,865
119,058		 Income and expenditure reserve
Restricted
Endowment
£000
£000
8,360
74,423
1,701
437
-
-
-
-
6
-
10,067
74,860
Income and expenditure reserve
Restricted
Endowment
£000
£000
8,074
71,352
1,083
4,239
-
-
(100)
-
(697)
(1,168)
8,360
74,423		 Total
£000
201,841
2,492
44
-
-
204,377
Total
£000
197,115
4,859
(133)
-
-
201,841

The notes on pages 33 to 52 form part of these accounts

Page 30

MAGDALENE COLLEGE. CAMBRIDGE CONSOLIDATED BALANCE SHEET YEAR ENDED 30 JUNE 2024 Note 2024 2023 £000 Non-current assets Fixcd asscts Heritage Asset5 nves¢m¢nls 103,554 264 103 518 207,336 105.100 264 101,345 206,709 9b 10 Current as5e15 Stocks Trade and other receivables Cash and Cash equivalents 210 1,869 12 13 2.762 7,884 6.947 Creditors: amounts falling due within one year 14 3.835 Net eurrelll assets 4.049 3.155 Creditors: Amounts falling due after more Ihan one year Is (5.954) (6,012) Provisions Pension provisions 16 (1,054) (2,011) Total net assets 204,377 201841 Restricted reserves Income and expenditure reserv¢- endowment reserve Income and expenditure reserve- restricled reserve 17 18 74,860 74.423 8,360 82.783 84,927 Unrestricted reserves In￿me and expenditure reserve- unrcstricted 19,450 119058 Total reserve5 201,841 These financial stglement5 were approved by the Governing Body ott 17th October 2024 Ind are signed on their behalf by: C J Greenw Master S J Morris Senior Bursar The notes on pages 33 10 52 forn part of these accounts Page31

MAGDALENE COLLEGE, CAMBRIDGE CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 30 JUNE 2024

Note
Net cash inflow/(outflow) from operating activities
19
Cash flows from investing activities
20
Cash flows from financing activities
21
Increase/(decrease) 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
13		 2024
£000
(632)
3,090
(647)

1,811
3,994
5,805		 2023
£000
(1,573)
(121)
(660)
(2,354)
6,348
3,994

The notes on pages 33 to 52 form part of these accounts

Page 32

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2024

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		 2024
£000
1,274
960
744
131
92
3,201
2024
£000
2,558
663
1,001
595
4,817
2024
£000
1,632
2,669
-
221
4,522
2024
£000
1,469
4,867
(192)
6,144
(1,632)
4,512
22,784
27,296		 2023
£000
1,324
865
706
96
65
3,056
2023
£000
2,408
334
933
313
3,988
2023
£000
1,491
2,737
-
105
4,333
2023
£000
1,372
3,656
(214)
4,814
(1,491)
3,323
19,461
22,784

Page 33

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

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 7)
5.
Accommodation, catering and conferences expenditure
Accommodation
College members
Conferences
Catering
College members
Conferences
Total (note 7)
6.
Other expenditure
Loan interest
USS pension interest charge
FRS 102 pension schemes interest charge
Staff Costs
Depreciation
Estates costs
Restricted Funds Other Expenditure
Other general and administrative
Total		 2024
£000
-
192
-
192
0
0
70
262
2024
£000
2,779
890
740
713
830
297
6,249
2024
£000
4,144
697
1,416
645
6,902
2024
£000
177
21
54
299
36
307
116
173
1,183		 2023
£000
-
214
-
214
74
288
2023
£000
2,525
804
665
731
856
274
5,855
2023
£000
3,688
625
1,335
625
6,273
2023
£000
190
37
31
251
27
389
95
160
1,180

Page 34

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

7a.
Analysis of 2023/24 expenditure by activity
Staff costs
(note 8)
Other
operating
expenses
£000
£000
Education (note 4)
2,735
2,887
Accommodation, catering and conferences
(note 5)
2,617
3,203
Investment management costs (note 3c)
-
262
Other expenditure
299
849
Change in USS pension deficit recovery
pension provision
(952)
-
Contribution under Statute G, II
-
25
4,699
7,226
Expenditure includes fundraising costs of £265k. This expenditure does not include
7b.
Analysis of 2022/23 expenditure by activity
Staff costs
(note 8)
Other
operating
expenses
£000
£000
Education (note 4)
2,562
2,764
Accommodation, catering and conferences
(note 5)
2,431
2,752
Investment management costs (note 3c)
-
288
Other expenditure
251
902
Change in USS pension deficit recovery
pension provision
(123)
-
Contribution under Statute G, II
-
19
5,121
6,725		 Depreciation
Total
£000
£000
627
6,249
1,082
6,902
-
262
35
1,183
-
(952)
-
25
1,744
13,669
the costs of alumni relations.
Depreciation
Total
£000
£000
529
5,855
1,090
6,273
-
288
27
1,180
-
(123)
-
19
1,646
13,492		 Total
£000
6,249
6,902
262
1,183
(952)
25
13,669
13,492

Expenditure includes fundraising costs of £216k. This expenditure does not include the costs of alumni relations.

7c.
Auditors remuneration
Other operating expenses include:
Audit fees payable to College’s external auditors		 2024
2023
£000
£000
32
31

Page 35

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

8. Staff

Staff
Staff Costs
Salaries
National Insurance
Pension costs (note 25)
Net change in USS deficit recovery provision
(see Note 16)
Subtotal of pension costs (see Note 8b.)
Total		 Academic
2024
£000
979
79
152
(528)
(376)
682		 Non-
academics
2024
£000
3,892
321
263
(459)
(196)
4,017		 Total
2024
£000
4,871
400
415
(987)
(572)
4,699		 Total
2023
£000
4,491
359
477
(206)
271
5,121

Based on the 2024 valuation of the Universities Superannuation Scheme (USS), the impact of the net change in the USS deficit recovery provision is a credit of £987k (2023: £206k). This comprises a non-cash credit resulting from the change in assumptions, including the discount rate, of £952k (2023: £123k) and cash contributions made to reduce the deficit in the year of £35k (2023: £83k).

Average staff numbers (full-time
equivalents)
Academic
Non-academics		 Average staff number 2024
Number of
Fellows
Full-time
equivalents
56
3
106
59
106		 Average staff number 2023
Number
of Fellows
Full-time
equivalents
58
3
100
61
100		 Average staff number 2023
Number
of Fellows
Full-time
equivalents
58
3
100
61
100
100

At the Balance Sheet date there were 45 (2023: 44) members of the Governing Body. During the year the number receiving remuneration was 45 (2023: 40) who are included in the 59 (2023: 61) 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:

2024 2023
Number Number
£100,001 - £110,000 - -
£110,001 - £120,000 1 1
£120,001 - £130,000 - -
£130,001 - £140,000 1 1
£140,001 - £150,000 - -
£150,001 - £160,000 1 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.

Page 36

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

8a. Key management personnel

ey management personnel
Total Total
2024 2023
£000 £000
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. 887 972

Aggregated remuneration

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

8b. Pension costs

The total pension cost included in staff costs for the year (see note 8a) was:

USS
CCFPS
Other
Total		 Employer
contributions
2024
£000
248
1
166
415		 Provisions
(Note 16)
2024
£000
(987)
-
-
(987)		 Total
2024
£000
(739)
1
166
(572)		 Employer
contributions
2023
£000
288
(47)
236
477		 Provisions
(Note 16)
2023
£000
(206)
-
-
(206)		 Total
2023
£000
82
(47)
236
271

Page 37

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

9a.
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
78
-
-
76,265
11,669
1,648
-
13,317
62,948
64,518		 Furniture &
Equipment
£000
1,366
-
(2)
-
1,364
1,024
57
(2)
1,079
285
342		 Energy
Regeneration
£000
75
-
-
-
75
28
4
-
32
43
47		 Library
Books
£000
195
20
(5)
-
210
86
14
(5)
95
115
109		 Information
Technology
£000
180
92
-
-
272
135
17
-
152
120
45		 Motor
Vehicles
£000
27
13
(10)
-
30
8
4
(5)
7
23
19		 Total
£000
118,050
203
(17)
-
118,236
12,950
1,744
(12)
14,682
103,554
105,100

The insured value of freehold land and buildings at 30 June 2024 was £175,744k (2023: £161,086k).

Page 38

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

9b. 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 statues that are 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 2024, there were no additions to Heritage assets. 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
Acquisitions purchased
Total cost of acquisitions
At end of year
10. 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
Other investments
Cash held for reinvestment		 2024
Total
£000
264
-
-
264
264
2024
Total
£000
101,345
2,708
(1,549)
1,108
(94)
103,518
39,729
8,127
54,230
1,432
103,518		 2023
Total
£000
178
82
4
86
264
2023
Total
£000
93,931
15,000
(11,450)
3,184
680
101,345
43,422
6,763
49,634
1,526
101,345

Investments held by the College also include an additional £1 (2023: £1) investment in the subsidiary company at cost. (see note 27)

Page 39

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

11.
Stocks
Goods for resale:
Catering
Fellows Wine
Merchandise
12.
Trade and other receivables
Members of the College
Rents
Conferences
Other receivables
13.
Cash and cash equivalents
Bank deposits
Current accounts
Cash in hand
14.
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		 2024
£000
34
162
14
210
2024
£000
255
736
90
788
1,869
2024
£000
4,503
1,302
-
5,805
2024
£000
470
1,297
123
318
208
25
201
1,093
100
3,835		 2023
£000
24
157
10
191
2023
£000
144
797
127
1,694
2,762
2023
£000
2,722
1,272
-
3,994
2023
£000
470
1,299
37
463
209
19
166
1,062
67
3,792

Page 40

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

15. Creditors: amounts falling due after more than one
year
Bank loans
Fee deposits
16.
Pension provisions
CEFPS
£000
Balance at beginning of year
-
Movement in the year
Current service cost including life assurance
-
Contributions
-
Other finance cost
-
Actuarial (gain) recognised in Statement of
Comprehensive Income and Expenditure
-
Remaining change in balance sheet liability
recognised in SoCIE
-
Net change in underlying assumptions
(see Note 8) -
- Change in underlying assumptions
-
- USS deficit contributions payable
-
Balance at end of year
-		 CCFPS
£000
1,045
16
(17)
54
(44)
-
-
-
1,054		 USS
£000
966
-
-
21
-
-
(952)
(35)
-		 2024
£000
4,935
1,019

5,954

2024

£000
2,011
16
(17)
75
(44)
-
(952)
(35)
1,054		 2023
£000
5,405
607
6,012
2023
£000
1,969
98
(52)
70
133
(1)
(123)
(83)
2,011

Page 41

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

17. 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
31,786
230
-
2,580
34,596
12,330
8,027
6,742
1,702
373
462
1,068
2,820
1,072
-
34,596
-
-
34,596
-
34,596		 Unrestricted
permanent
endowments
£000
42,637
-
-
(2,373)
40,264
-
-
-
-
-
-
-
-
-
40,264
40,264
39,596
(5,405)
6,038
35
40,264		 2024
Total
2023
Total

£000
£000
74,423
71,352
230
1,802
-
(1,168)
207
2,437
74,860
74,423
12,330
11,345
8,027
7,314
6,742
6,198
1,702
1,553
373
343
462
425
1,068
989
2,820
2,624
1,072
995
40,264
42,637
74,860
74,423
39,596
43,289
(5,405)
(5,875)
40,634
36,974
35
35
74,860
74,423

Page 42

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

18. Restricted Reserves

Reserves with restrictions are as follows:
Consolidated
Capital
grants
unspent
£000
Balance at beginning of year
Capital
-
Accumulated income
-
-
New donations
-
Fund transfer
-
Endowment return transferred
-
Other income
-
Increase/(decrease) in market value of
investments
-
Transfers
-
Release of capital funds spent in year
-
Expenditure
-
Balance at end of year
-
Capital
-
Accumulated income
-
-
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
-
Other Funds
-
-		 Permanent
unspent and
other
restricted
income
£000
-
3,248
3,248
-
39
934
99
-
6
-
(780)
3,546
-
3,546
3,546
1,176
1,488
445
204
64
67
57
44
-
1
3,546
Restricted
expendable
endowment

£000
5,112
-
5,112
1,877
(39)
102
210
281
-
(1,022)
6,521
6,521
-
6,521
3,255
583
77
898
45
-
2
7
-
1,654
6,521		 2024
Total
£000
5,112
3,248
8,360
1,877
-
1,036
309
281
6
-
(1,802)
10,067
6,521
3,546
10,067
4,431
2,071
522
1,102
109
67
59
51
-
1,655
10,067		 2023
Total

£000
5,039
3,035
8,074
1,480
-
941
164
212
(697)
(100)
(1,714)
8,360
5,112
3,248
8,360
3,354
1,974
700
981
112
59
54
78
780
268
8,360

Page 43

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

19. 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/(Increase) in stocks
Decrease/(Increase)in trade and other receivables
(Decrease)/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
20.
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
21.
Cash flows from financing activities
Interest paid
Repayments of amounts borrowed
Total cash flows from financing activities		 2024
£000
2,492
1,749
-
(19)
893
457
(913)
(1,108)
-
(4,360)
177
(632)
2024
£000
4,360
1,549
(2,615)
(204)
3,090
2024
£000
(177)
(470)
(647)		 2023
£000
4,859
1,654
-
(2)
(1,211)
509
(92)
(3,184)
(82)
(4,214)
190
(1,573)
2023
£000
4,214
11,450
(15,678)
(107)
(121)
2023
£000
(190)
(470)
(660)

Page 44

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

22. 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
2023
Cash
Flows
Acquisitions
& Disposal
of
subsidiaries
New
finance
leases
Other
non-cash
changes
Changes in
market
value and
exchange
rates
At 30
June
2024
£000
£000
£000
£000
£000
£000
£000
3,994
1,811
-
-
-
-
5,805
(470)
-
-
-
-
(470)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(470)
-
-
-
-
-
(470)
(5,405)
470
-
-
-
-
(4,935)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(5,405)
470
-
-
-
-
(4,935)
(1,881)
2,281
-
-
-
-
400

23. Financial Instruments

2024 2023
£000 £000
Financial assets
Financial assets that are equity instruments measure at cost less impairment
Other investments 62,788 56,921
Financial assets that are debt instruments measure at amortised cost
Cash and cash equivalents 5,805 3,994
Other debtors 1,804 2,697
Financial liabilities
Financial liabilities measure at amortised cost
Loans 5,405 5,875
Trade creditors 1,297 1,299
Other Creditors 1,894 1,500
24. Capital commitments
2024 2023
£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 2024

25. 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

A deficit recovery plan was put in place as part of the 2020 valuation, which required payment of 6.2% of salaries over the period 1 April 2022 until 31 March 2024, at which point the rate would increase to 6.3%. As set out in Note 16, no deficit recovery plan was required under the 2023 valuation because the scheme was in surplus on a technical provisions basis. The College was no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision to the profit and loss account.

The latest available complete actuarial valuation of the Retirement Income Builder is as at 31 March 2023 (the valuation date), which was carried out using the projected unit method.

Since the College 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 2023 valuation was the seventh 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 (the statutory funding objective). At the valuation date, the value of the assets of the scheme was £73.1 billion and the value of the scheme’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%.

The key financial assumptions used in the 2023 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% pa from 2030

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

Benefits with no cap: CPI assumption plus 3bps Benefits subject to a “soft cap” of 5% (providing inflationary increases up to 5%, and half of any excess inflation over 5% up to a maximum of 10%):

CPI assumption minus 3bps Discount rate (forward rates) Fixed interest gilt yield curve plus: Pre-retirement: 2.50% p.a. Post retirement: 0.9% 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 2023 actuarial valuation. The mortality assumptions used in these figures are as follows:

2023 valuation

Mortality base table 101% of S2PMA “light” for males and 95% of S3PFA for females Future improvements to CMI 2021 with a smoothing parameter of 7.5, an initial addition of 0.4% p.a., 10% w2020 and w2021 parameters, and 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 2024

25. Pension Schemes continued

The current life expectancies on retirement at age 65 are:

2024 2023
Males currently aged 65 (years) 23.7 24.0
Females currently aged 65 (years) 25.6 25.6
Males currently aged 45 (years) 25.4 26.0
Females currently aged 45 (years) 27.2 27.4

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 2024, 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:

2024 2023
% p.a. % p.a.
Discount rate 5.10 5.20
Increase in salaries to 2030 2.90 3.30
Increase in salaries from 2031 3.80 3.30
Retail Prices Index (RPI) assumption 3.35 3.40
Consumer Prices Index (CPI) assumption to 2030 2.35 2.80
Consumer Prices Index (CPI) assumption from 2031 3.25 2.80
Pension Increases in payment (CPI Max 2.5% p.a.) 2.00 2.05

The underlying mortality assumption is based upon the standard table known as S3PA on a year of birth usage with CMI_2023 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 (2023: S3PA with CMI_2022 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
Deferred Members – Option 1 Benefits 63 62

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.

Page 47

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

25. Pension Schemes continued

The amounts recognised in the balance sheet as at 30 June 2024 (with comparative figures as at 30 June 2023) are as follows:

Present value of plan liabilities
Market value of plan assets
Net defined benefit asset/(liability)		 2024
2023
£
£
(5,595,887)
(5,587,216)
4,541,294
4,541,875
(1,054,593)
(1,045,341)

The amounts to be recognised in profit and loss for the year ending 30 June 2024 (with comparative figures for the year ending 30 June 2023) are as follows:

Current service cost
Administrative expenses
Interest on net defined benefit (asset)/liability
Loss/(gain) on plan changes
Curtailment (gain)/loss
Total		 2024
2023
£
£
-
-
15,918
15,918
54,420
31,732
-
-
-
-
70,338
47,650

Changes in the present value of the plan liabilities for the year ending 30 June 2024 (with comparative figures for the year ending 30 June 2023) 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)
Loss/(gain) on plan changes
Curtailment (gain)/loss
Present value of plan liabilities at end of period		 2024
2023
£
£
5,587,216
6,411,539
-
-
-
-
(284,996)
(267,979)
283,219
238,594
10,448
(794,938)
-
-
-
-
5,595,887
5,587,216

Changes in the fair value of the plan assets for the year ending 30 June 2024 (with comparative figures for the year ending 30 June 2023) 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		 2024
2023
£
£
4,541,875
5,578,193
17,245
(30,700)*
-
-
(284,996)
(267,979)
(18,372)
(19,399)
228,799
206,862
56,743
(925,102)
4,541,294
4,541,875

Actual return on plan assets 285,542 (718,240)

Page 48

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

25. Pension Schemes continued

The major categories of plan assets for the year ending 30 June 2024 (with comparative figures at 30 June 2023) are as follows:

Equities
Bonds & Cash
Property
Total		 2024
2023
46%
49%
42%
38%
12%
13%
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 2024 (with comparative figures for the year ending 30 June 2023) 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		 2024
2023
£
£
56,743
(925,102)
(2,454)
(3,481)
(28,224)
(353,138)
17,776
1,148,076
43,841
(133,645)

Movement in net defined benefit asset/(liability) during the year ending 30 June 2024 (with comparative figures for the year ending 30 June 2023) 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		 2024
2023
£
£
(1,045,341)
(833,346)
(70,338)
(47,650)
17,245
(30,700)*
43,841
(133,645)
(1,054,593)
(1,045,341)

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 2023. 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 12 June 2024 and are as follows:

These payments are subject to review following the next funding valuation, due as at 31 March 2026

.

Page 49

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

25. 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 £25k (2023: £25k) 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 (2023: £2k) 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 scheme separately from those of the Responsible Bodies.

Each participating Responsible Body in the Church of England Funded Pensions 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. 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.

The 2021 valuation showed the Scheme to be fully funded and as such in 2023, following the valuation results being agreed, the deficit contributions paid were £0 (2022: £0).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on assets of £2,720m and a funding target of £2,160m, assessed using the following assumptions:

An average discount ꞏ rate of 2.7% p.a.;

ꞏ RPI inflation of 3.6% p.a. (and pension increases consistent with this);

ꞏ CPIH inflation in line with RPI less 0.8% pre 2030 moving to RPI with no adjustment from 2030 onwards; ꞏ Increase in pensionable stipends in line with CPIH;

ꞏ Mortality in accordance with 90% of the S3NA tables, with allowance for improvements in mortality rates from 2013 in line with the CMI2020 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7, an initial addition to mortality improvements of 0.5% pa and an allowance for 2020 data of 0% (i.e. w2020 = 0%).

Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the Scheme was fully funded.

The deficit recovery contributions under the recovery plan in force at each 31 December were as follows:

% of pensionable stipends

31 December 2021 7.1% payable from January 2021 to December 2022 31 December 2022 Nil 31 December 2023 Nil

Page 50

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

25. Pension Schemes continued

An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from April 2022, and remained in place until December 2022.

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

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2022 is nil. The movement in the balance sheet liability over 2021 and over 2022 is set out in the table below.

2023 2022
Balance sheet liability at 1 January 0 2,000
Deficit contribution paid 0 (1,000)
Interest cost (recognised in SoFA) 0 0
Remaining change to the balance sheet liability* (recognised in SoFA) 0 (1,000)
Balance sheet liability at 31 December 0 0

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. No assumptions are needed for December 2022 as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2021 since pensionable stipends for the remainder of the recovery plan were already known.

Dec-23 Dec-22 Dec-21
Discount rate n/a n/a 0.0% pa
Price inflation n/a n/a n/a
Increase to total pensionable payroll n/a n/a -1.5% 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 8) was as follows:

USS: Contributions
CCFPS: Charged/(Credited) to SOCIE
Other Schemes		 2024
2023
£000
£000
248
288
1
(47)
166
236
415
477

26. 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.

Page 51

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2024

26. Related Party Transactions continued

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.

The 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
£110,001
£110,000
£120,000
Total		 2024
2023
29
24
7
7
2
2
2
1
-
1
-
1
1
1
-
-
-
1
1
1
1
1
-
1
44
40

The total Trustee salaries were £705k for the year (2023: £758k).

The trustees were also paid other taxable benefits (including associated employer National Insurance contributions and employer contributions to pensions) which totalled £182k for the year (2023: £214k).

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.

27. 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.

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