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

2025-06-30-accounts

MAGDALENE COLLEGE CAMBRIDGE

REPORTS AND ACCOUNTS

FOR THE YEAR ENDED 30 JUNE 2025

Registered Charity Number 1137542

MAGDALENE COLLEGE, CAMBRIDGE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2025

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

Page 1

MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP YEAR ENDED 30 JUNE 2025

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) (to 30 September 2025) Professor S Martin, MA, PhD Professor T N Harper FBA, 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 (to 31 March 2025) 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) (to 30 September 2025) Professor J J Orr, PhD The Revd S C Atkins, MA Professor P J Lane, MA, PhD (to 30 September 2024) A Mills, DipABRSM, MA, BCL (Oxon), Barrister at Law (Gray’s Inn) E Gallo, MPhil, DPhil (Oxon) S Ravenscroft, MA (Nottingham), PhD Professor K Okkenhaug, PhD (Toronto, Canada) Professor L G Fisher, MA (St Andrews), PhD A Bryan, MA (York), PhD (London) J Hauge, PhD Z Bond, MEng, MA, PhD P Asimov-Hofmann, AB (Brown), MSt (Oxon), PhD (from 1 October 2024) Professor X Moya, MSc, PhD (Barcelona) (from 1 March 2025)

Page 2

MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP (continued) YEAR ENDED 30 JUNE 2025

Bye-Fellows

C MacKenzie, PhD (ANU, Australia) (to 30 September 2024) N Bridson-Hubbard, BA, MPhil (to 30 September 2024) F Rigby, MPhys (Durham) (to 30 September 2024) A Pesci, PhD (La Plata) (to 30 September 2025) R Padel MA, DPhil (Oxford) (from 1 October 2024 to 30 September 2025) M-M Wandrey, M Phil, Dr.Med (Berlin) (from 1 October 2024 to 30 September 2025) G Mussini, M Biol (Oxford) (from 1 October 2024 to 30 September 2025)

Junior Research Fellows

D Dunkelmann, MSc (Zurich), PhD (to 30 September 2024) P Asimov-Hofmann, AB (Brown), MSt (Oxon), PhD (to 30 September 2024) H Marshall, MA (Brown), PhD (to 6 December 2024) B Peng, MSc (Fudan, China) G Giovannetti-Singh, PhD (to 1 February 2025) M-R Ivan, PhD W Barrie, BA, PhD (from 1 October 2024) S M Niang, BA, MA (London), PhD (from 1 October 2024) M A Taylor, AM, PhD (Harvard) (from 1 October 2024)

Senior Research Fellows

P M Steele, MPhil, PhD A Neumann, MA, PhD Professor F Aigbirhio, MA, DPhil, CChem, FRSC T Licence MA, MPhil, PhD, FHEA, FRHistS, FSA S Caputo, MSc (Edinburgh), PhD (to 30 September 2025) A Lefauve, MSc, PhD Professor A Fialkov, MSc, PhD (Tel Aviv, Israel) A Baez-Ortega, PhD Professor G Neff, M Phil PhD (Columbia) Professor D Thomas, MA, MB BChir, PhD, MRCP (from 1 October 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

Page 3

MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP (continued) YEAR ENDED 30 JUNE 2025

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 Professor P J Lane, MA, PhD (from 1 October 2024) R L Skelton, MA (from 1 October 2024)

Honorary Fellows

HRH the Duke of Gloucester KG, GCVO, MA Professor Sir David Hopwood, MA, PhD, DSc (Glasgow), FRS J C F-Simpson CBE, MA, FRGS Sir Colin Corness, MA (deceased 25 June 2025) 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 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 KCVO MBE, MA, PhD C B M Derham, MA M Moorman, MPhil A Schultz, MA P Carne MBE HonRCM, MA Professor P Friend, MA, MB, BChir, MD Professor T Leighton FRS, FREng, FRMedSci, DSc Professor C Lintott FRAS, MA, PhD (London) Professor R Rickaby FRS, MA, PhD Dame R Whiteread DBE, MA (London)

Page 4

MAGDALENE COLLEGE, CAMBRIDGE FELLOWSHIP (continued) YEAR ENDED 30 JUNE 2025

Visiting Fellows

Professor M Kelleher MRIA, PhD (Boston) (from 1 October 2023 to 30 September 2024) Revd R MacSwain, MTh (Edinburgh), PhD (St Andrews) (from 1 April to 31 July 2024) E Hughes, MRes, PhD (Bangor) (from 1 October to 31 December 2024) S Scott-Brown, PhD (ANU) (from 1 October to 31 December 2024) Professor R Peiser, MBA (Harvard), PhD (from 1 October 2024 to 30 September 2025) Professor A B Bricker, MA (Toronto), PhD (Stanford) (from 1 January to 31 March 2025) Professor M Eddy, MDiv (Princeton), MA, PhD (Durham) (from 1 January to 31 March 2025) A Taylor, MA, BCL (Oxford) (from 1 April to 30 June 2025) L Walker, AM, PhD (Harvard) (from 1 April to 30 June 2025) Professor A Zifferero (from 1 April to 30 September 2025)

Fellow-Commoners

R L Skelton, MA (to 30 September 2024) 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, OBE, 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) Professor D A S Fergusson OBE, MA (Glasgow), BD (Edinburgh), DPhil (Oxon), DD, FBA, FRSE M Thompson, MA PhD R Calvocoressi CBE, MA (Oxon) C MacKenzie, PhD (ANU, Australia) (from 1 October 2024) C P G Ziar MA (from 1 October 2024) Professor J S Begbie, PhD, DD (Aberdeen) (from 1 February 2025) G Giovannetti-Singh, PhD (from 23 May 2025)

Page 5

MAGDALENE COLLEGE, CAMBRIDGE PRINCIPAL OFFICERS AND PROFESSIONAL ADVISERS YEAR ENDED 30 JUNE 2025

Address Magdalene College Cambridge CB3 0AG Officers Master: Sir Christopher Greenwood GBE CMG KC, MA, LLM President: N R Carroll, MA, MB, BChir 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: PEM Audit Limited
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 2025

The Governing Body of Magdalene College presents its Reports and Accounts for the year ended 30 June 2025.

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 Universitywide 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 2025

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 continues to work hard to support its students via its supervision and tutorial systems, further development 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 2025 examinations with over half of students obtaining a 2:1 or better and of the cohort of graduating students, 89% achieving a first or 2:1.

The college has advanced plans to restore and improve the Samuel Pepys building in order to undertake a substantial refurbishment of the building and over the course of 2024-25 preparations developed in detail. 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 and the main contractor will commence on site in July 2025.

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

International economic conditions remain tough and together with some aspects of government policy, it has led to a dire environment in the commercial office sector and there are financial 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 2025

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
(Loss)/gain on investments
Actuarial gain/(loss) on pensions
Total Comprehensive Income		 2025
£000
19,809
(14,764)
5,045
(685)
116
4,476		 2024
£000
15,053
(13,669)
1,384
1,108
44
2,536		 % Change
+31.6%
+8.0%
+264.6%
-161.8%
+163.6%
+76.5%

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

Income

Overall income (before investment gains and actuarial pension changes) increased by +31.6% when compared to the previous year. The increase is largely due to a major legacy to the College, providing an endowment for teaching and research and some other smaller endowment donations. Excluding the bequest and other endowment donations, income hardly increased at all (+0.3%). Increases to unregulated undergraduate fee income and commercial conference activity have been offset by reductions in investment income relating to commercial property. Expenditure on education provision increased by +3.4% mainly due to staff costs. The reversal of the significant accounting credit in the USS pension provision 2023-24 resulted in underlying cost growth. Including the pension deficit provision changes, total expenditure increased by +8.0%. Significant donations in the year were received for a combination of student support, research and the Pepys Building restoration project. Valuation gains in commercial property directly owned by the College were offset by expenditure in year on improvements and market losses on securities.

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

Income from College-provided accommodation and catering was £5,084k (£4,817k for 2023-24), an increase of +5.5% on last year. College member accommodation and catering income remained static. Conference revenue increased to £1,456k from £1,258 (2023-24) +15.7% as the College strives to grow this income stream.

Page 9

MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2025

Total investment income actually decreased to £4,135k (£4,360k previous year) or by £225,000. Actual income from securities and other investments grew by 10.2% due to the College’s policy spending rate on its total return accounting, even though the policy spending rate was constant at 3.25% for 2024-25. The spending rate will actually increase to 3.5% for 2025-26. Rental income from the commercial property estate reduced by -14.6% with challenging market conditions and void units, especially in commercial offices.

Total donation income was £6,887k (£2,422k for 2023-24), reflecting continued generous donations in support of student welfare and financial assistance and substantial donations towards the Pepys Building restoration project. The College received a large bequest supporting teaching and research in Law.

Expenditure

Expenditure on education related activity increased to £6,461k (£6,249k previous year), which compares to £3,139k received (£2,978k previous year) directly from academic fees, providing a calculated education deficit on activity of £3,322k (£3,271k previous year). Education activity related expenditure saw an increase in teaching costs, tutorial support and student welfare. Teaching costs increased predominantly due to the cost of providing supervisions following agreed increased rates across the collegiate university. This increase in providing supervisions for 2024-25 was +13.9%. The increase in tutorial related costs directly reflects continued investment in student mental health and wellbeing services and in the College student welfare team. The increase in admission costs arises from more Widening Participation activity. Increased support for Research Fellows is reflected in the increase in research expenditure. In total, expenditure on education accounts for 43.8% (previous year 45.7%) of total expenditure.

Expenditure on College-provided accommodation and catering actually decreased to £4,805k (£5,560k previous year). Other operating costs reduced by -3.2% reflecting efficiency gains, although other expenditure increased due to higher pension deficit contributions and the void costs associated with empty commercial property.

Total staffing costs increased by 6.6% over the previous year, now amounting to £6,022k (£5,651k previous year). After adjusting for the change in USS pension deficit provision contributions compared to 2023-24, staff costs amounted to 40.8% of total costs (41.3% the previous year). Labour market conditions continued to ease and staff retention remained stable. The College was generally able to recruit to vacancies when needed. However, the costs of employment are still rising faster than income, exacerbated by new increases in employer national insurance contributions and lowered thresholds. This combined with higher National Living Wage and National Minimum Wage, which have in fact risen at a faster pace than general wages and inflation, has created more upward pressure on rates of pay and thus costs. The College made a pay award above the higher education sector for its employees in addition to paying two discretionary bonuses to staff to ensure rates of pay remain competitive and retention remains stable.

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 £913k (£1,054k 2023-24). There has been no change to the USS pension scheme’s deficit which is completely eliminated. The USS pension provision accounting adjustment is included in the Consolidated Statement of Income and Expenditure Account 2023-24, there being no adjustment necessary 2024-25.

Depreciation costs for operational buildings increased to £1,745k (£1,744k previous year), reflecting the college’s depreciation policy.

College net assets increased slightly from £204.3m to £208.9m or by +2.3% at the end of the year. Endowment values increased due to generous donations and the aforementioned significant bequest for teaching and research. There is a decrease in cash held following the use of cash for expenditure on capital projects. There is a lower actuarial assessed defined benefit pension scheme deficit which provides a modest reduction in liabilities.

Capital Expenditure and Maintenance

The College's operational assets, the largest asset class of the College, remain a financial pressure for the College. During the year there was significant capital and building maintenance investment. Preparatory work was undertaken enabling the main contract to start in July 2025 on the major restoration of the Pepys Building, a project which will continue until late summer 2026. Other capital expenditure was for improvements to student accommodation, electrical infrastructure and vital riparian works. The College commissions a rolling condition survey of its operational estate which informs its

Page 10

MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2025

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 long-term maintenance of its operational estate. During the year the College invested in a building maintenance programme improving one of the larger student accommodation houses in Thompson’s Lane, Cambridge.

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 Governing Body decided to strengthen the monitoring of fund manager responsibility policy and its impact by requiring annual reports from its managers on sustainable and responsible investment.

The College holds a securities-based portfolio which was valued at £62.8m (£62.4m previous year). Its principal fund manager is Baillie Gifford (managing £39.8m in 2024-25 and £40.8m 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 £40.6m (£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 £1,798k (£1,632k in 2023-24). 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. Looking ahead, the Committee reviewed the spending rule during the year and recommended for an increase to the Governing Body for the next year, 2025-26. An increase to 3.5% was agreed.

The College has been generally pleased with the performance of the endowment over the medium term although weakness in the property market had proved painful and market volatility and US trade tariff policy has dented the performance of securities.

Directly held commercial property returned +6.6% in the year (-4.3% 2023-24). The Charities Property Fund returned +7.2%. It should be noted the directly held property is only externally valued periodically, currently on a five-year cycle.

The Baillie Gifford Responsible Global Equity Income fund underperformed with a net return of -0.9% for the year to June 2025, when set against a peer sector average return of +7.3% and against a market Index of +7.6%. The performance of the multi-asset lower volatility portfolios of Cazenove Capital and Troy Asset Management performed very well. Troy Ethical Multi-Asset fund returned +7.2% whilst Cazenove Capital’s Sustainable Multi-Asset fund returned +5.2%. A £1m fixed term (12 month) deposit was, on maturity, re-invested and placed on another fixed term deposit along with a further £1m (12 months) 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.£9.1m; performance was +2.9% for the nine months to March 2025.

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MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2025

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 £4.7m towards teaching and research, £1m in support of the Pepys Building restoration project and a further £531k 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 2024-25, 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 economic climate, the 2025 Telephone Campaign raised new funds in excess of £175k, a figure ahead of initial expectations. The College is grateful to its members and supporters. The costs of fundraising efforts were £256k (£265k for 2023-24).

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 £208.9m. 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 down. Collectively the College maintains its free revenue reserves and its earmarked designated reserves, after taking account of the assessed pension deficit. These are liquid unrestricted funds of the College. 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 £5.8m.

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		 £118.6m
(£103.8m)
(£ 0.9m)
£ 13.9m
£ 5.8m

The college’s major designated reserves relate to student support (£2.7m), operational buildings (£3.1m), commercial property (£1.4m), and a major capital projects reservice (£5.4m). 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 decreased by £2,464k, from £5,805k to £3,341k over the year. Cash levels at the year end reflect additional investment on building improvements during the year.

Going Concern

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

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MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2025

PRINCIPAL RISKS

The College maintains a Major Risks Register that identifies what it considers the major risks to which the College is exposed and their assessed impact and probability of occurrence; this was reviewed and updated during the year. As outlined in the Governing Body’s statement on Internal Controls the risk register is reviewed regularly by the principal

College Officers and the Finance & General Purposes Committee, and then final consideration by the Governing Body. As far as is practical the College then takes additional measures to mitigate key risks and where appropriate insurance cover is put in place. Nevertheless, the College is exposed to a variety of significant risks. Presently the known principal risks include:

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

FINANCIAL OUTLOOK AND PLANS FOR THE FUTURE

Looking forward, the financial outlook for the college remains challenging but stable. It’s positive that the inflationary forces have receded, particularly for food and energy, but they are still high for labour and building costs. Although Cambridge is a strong regional economy it has been feeling the economic impact from inflation and is suffering from relatively low business confidence. For commercial property demand for office space remains weak, and transaction volume exceedingly low in 2025 and 2024. Office space demand has mainly derived from office relocation rather than business expansion, and the pressure on the hospitality sector remains high. The international economic environment, particularly with US trade policy and the uncertainty over UK government taxation policy is holding back business confidence.

The college has had to set another deficit budget in 2025-26 which aims to give the college time to review and, if necessary, reshape some of its expenditure without impacting on general services and college life too severely as well as trying to grow college income, particularly commercial property and conferences revenues.

Student mental health and welfare are a sector and university wide priority with further resources being invested across the colleges and the university.

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MAGDALENE COLLEGE, CAMBRIDGE REPORT OF THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2025

The College has advanced its preparations for a major capital project restoring and improving the Pepys building which commenced in July 2025 and other capital projects will focus on buildings fabric and infrastructure. These major projects will draw on designated reserve funds over the coming years. The college plans to advance its long term sustainability plans to reduce its impact on the environment.

Approved by the Governing Body on 16 October 2025

C J Greenwood S J Morris Master Senior Bursar

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PUBLIC BENEFIT YEAR ENDED 30 JUNE 2025

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 376 (2024: 367) undergraduate and 140 (2024: 154) postgraduate fee-paying 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 2025

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 1,980 (2024:1,382) 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 2024-25, the number of awards made was 77, out of a Home undergraduate population of 278; 38 of the awards were at the maximum value of £3,500; and the average value of the awards was £2,613.) 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 2024-25 the College was able to support 33 undergraduate students through this enhanced bursary scheme and a further third year undergraduate was 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 2025

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 £252k 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 2024-25 were £49k

The Governing Body approved annual prizes and scholarships for undergraduates obtaining outstanding examination success. For 2024-25 122 students were awarded a prize or scholarship, the total cost was £41k.

Finally, the College operates a financial assistance scheme, which also partially contributes to the cost of the Cambridge Bursary Scheme, for all students needing financial assistance 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 £21k for the year.

Access

The Access and Outreach team expanded in 2024, allowing the Widening Participation Officer and Schools Liaison Officer to work together to host a wide range of in-person and online outreach events. In the 2024/25 academic year, 9,500 pupils attended targeted events, including 45 webinars, 7 residential programmes, and 43 school visits to College. A particular highlight of the year was the Liverpool Event which attracted over 500 pupils and 80 teachers from across Merseyside and North Wales.

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 2025

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 2025 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 2025

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 2025

Opinion

We have audited the financial statements of Magdalene College (the 'College') for the year ended 30 June 2025, which comprise of the Consolidated Statement of Comprehensive Income and Expenditure, the Statement of Changes in Reserves, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement and the related notes, 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).

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 Auditor's 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 or College’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 Trustees are responsible for the other information. The other information comprises the information included in the Operating and Financial Review other than the financial statements and our Auditor's 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 this gives rise to 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.

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:

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MAGDALENE COLLEGE, CAMBRIDGE INDEPENDENT AUDITORS’ REPORT TO THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2025

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and College and its environment obtained in the course of the audit, we have not identified material misstatements in the Operating and Financial Review.

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 Trustees

As explained more fully in the responsibilities of the Trustees statement, set out on page 19, the Trustees are 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 Trustees 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 and College'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 or the College or 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 Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

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MAGDALENE COLLEGE, CAMBRIDGE INDEPENDENT AUDITORS’ REPORT TO THE GOVERNING BODY (continued) YEAR ENDED 30 JUNE 2025

As a result of the above risk assessment procedures we identified the greatest risk of material misstatement on the financial statements arising from irregularities and fraud to be within the potential for management to override controls together with the risk of fraudulent revenue recognition. We considered the risk of fraudulent revenue recognition to be most prevalent in the completeness and cut off of donation and legacy income and the cut off of conference income. In response to these identified risks, we designed procedures which included, but were not limited to:

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

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.

Use of our report

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

PEM Audit Limited

Registered Auditors Salisbury House, Station Road, Cambridge CB1 2LA Date:

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

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES YEAR ENDED 30 JUNE 2025

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 2025-26 financial year and outline budgets up to financial year end 2028. 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 2025

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 2024-25, 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 £122k is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows:

Income (see note 1): £99k 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 2025

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 structure between 41 and 100 years the internal fit-out between 15 and 35 years

the mechanical and electrical services between 10 and 35 years

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

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

Maintenance of premises

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

Equipment

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

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

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2025

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 2025. 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 5 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

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MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2025

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

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

Financial assets

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

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

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

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

Financial Liabilities

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

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

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

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

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

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

Page 27

MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2025

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 28

MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued) YEAR ENDED 30 JUNE 2025

Pensions

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

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

Page 29

MAGDALENE COLLEGE, CAMBRIDGE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE YEAR ENDED 30 JUNE 2025

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
10
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
3,326
5,084
2,359
658
219		 2025
Restricted
£000
Endowment
£000
99
-
-
-
115
1,661
1,140
(1,798)
59
-
1,413
(137)
581
-
-
4,707
1,221
-
3,215
4,570
1,474
-
(219)
-
-
202
126
-
-
-
-
-
1,381
202
1,834
4,368
(51)
(590)
1,783
3,778
-
-
1,783
3,778		 Total
£000
3,425
5,084
4,135
-
278
12,922
959
4,707
1,221
19,809
6,461
6,713
264
1,305
-
21
14,764
5,045
(685)
4,360
116
4,476		 Unrestricted
£000
3,109
4,817
2,724
597
202
11,449
315
-
-
11,764
4,700
6,763
70
1,069
(952)
25
11,675
89
265
354
44
398		 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
11,646
378
-
-		 12,631
2,192
230
-
12,024 15,053
4,987
6,932
62
1,179
-
21		 6,249
6,902
262
1,183
(952)
25
13,181 13,669
(1,157) 1,384
(44) 1,108
(1,201) 2,492
116
(1,085)		 44
2,536

The notes on pages 34 to 53 form part of these accounts

Page 30

MAGDALENE COLLEGE, CAMBRIDGE STATEMENT OF CHANGES IN RESERVES YEAR ENDED 30 JUNE 2025

Balance at 1 July 2024
Surplus/(Deficit) from income and expenditure statement
Other comprehensive income
Release of capital funds spent in year
Transfers
Balance at 30 June 2025
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		 Unrestricted
£000
119,450
(1,201)
116
200
(4)		 Income and expenditure reserve
Restricted
Endowment
£000
£000
10,067
74,860
1,783
3,778
-
-
(200)
-
4
-		 Total
£000
204,377
4,360
116
-
-
118,561
Unrestricted
£000
119,058
354
44
-
(6)
119,450		 11,654
78,638
Income and expenditure reserve
Restricted
Endowment
£000
£000
8,360
74,423
1,701
437
-
-
-
-
6
-
10,067
74,860		 208,853
Total
£000
201,841
2,492
44
-
-
204,377

The notes on pages 34 to 53 form part of these accounts

Page 31

MAGDALENE COLLEGE, CAMBRIDGE CONSOLIDATED BALANCE SHEET YEAR ENDED 30 JUNE 2025

Note
Non-current assets
Fixed assets
9a
Heritage Assets
9b
Investments
10
Current assets
Stocks
11
Trade and other receivables
12
Cash and cash equivalents
13
Creditors: amounts falling due within one year
14
Net current assets
Creditors: amounts falling due after more than one year
15
Provisions
Pension provisions
16
Total net assets
Restricted reserves
Income and expenditure reserve - endowment reserve
17
Income and expenditure reserve - restricted reserve
18
Unrestricted reserves
Income and expenditure reserve - unrestricted
Total reserves		 2025
£000
103,530
264
105,980
209,774
212
5,956
3,341
9,509
(4,481)
5,028
(5,036)
(913)
208,853
78,638
11,654
90,292
118,561
208,853		 2024
£000
103,554
264
103,518
207,336
210
1,869
5,805
7,884
(3,835)
4,049
(5,954)
(1,054)
204,377
74,860
10,067
84,927
119,450
204,377

These financial statements were approved by the Governing Body on 16 October 2025 and are signed on their behalf by:

C J Greenwood S J Morris Master Senior Bursar

The notes on pages 34 to 53 form part of these accounts

Page 32

MAGDALENE COLLEGE, CAMBRIDGE CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED 30 JUNE 2025

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		 2025
£000
(1,100)
(732)
(632)
(2,464)
5,805
3,341		 2024
£000
(632)
3,090
(647)
1,811
3,994
5,805

The notes on pages 34 to 53 form part of these accounts

Page 33

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2025

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		 2025
£000
1,258
1,146
735
187
99
3,425
2025
£000
2,584
753
1,044
703
5,084
2025
£000
1,798
2,291
-
184
4,273
2025
£000
1,661
(385)
(202)
1,074
(1,798)
(724)
27,296
26,572		 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

Page 34

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

3c.
Investment management costs
Quoted security – equities
Other 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		 2025
£000
-
202
-
201
0
0
62		 2024
£000
-
192
-
192
70
264
2025
£000
2,834
894
783
866
784
300		 262
2024
£000
2,779
890
740
713
830
297
6,461
2025
£000
3,445
1,082
1,360
826
6,713
2025
£000
162
-
54
261
36
307
126
359
1,305		 6,249
2024
£000
4,144
697
1,416
645
6,902
2024
£000
177
21
54
299
36
307
116
173
1,183

Page 35

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

7a.
Analysis of 2024/25 expenditure by activity
Staff costs
(note 8)
Other
operating
expenses
£000
£000
Education (note 4)
3,020
2,812
Accommodation, catering and conferences
(note 5)
2,740
2,892
Investment management costs (note 3c)
-
264
Other expenditure
262
1,008
Change in USS pension deficit recovery
pension provision
-
-
Contribution under Statute G, II
-
21
6,022
6,997
Expenditure includes fundraising costs of £256k. This expenditure does not include
7b.
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		 Depreciation
Total
£000
£000
629
6,461
1,081
6,713
-
264
35
1,305
-
-
-
21
1,745
14,764
the costs of alumni relations.
Depreciation
Total
£000
£000
627
6,249
1,082
6,902
-
262
35
1,183
-
(952)
-
25
1,744
13,669		 Total
£000
6,461
6,713
264
1,305
-
21
14,764
13,669

Expenditure includes fundraising costs of £265k. 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		 2025
2024
£000
£000
30
32

Page 36

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

8.
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
2025
£000
1,045
91
132
-
132
1,268		 Non-
academics
2025
£000
4,212
360
182
-
182
4,754		 Total
2025
£000
5,257
451
314
-
314
6,022		 Total
2024
£000
4,871
400
415
(987)
(572)
4,699

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 £0 (2024: £987k). This comprises a non-cash credit resulting from the change in assumptions, including the discount rate, of £0 (2024: £952k) and cash contributions made to reduce the deficit in the year of £0 (2024: £35k).

Average staff numbers (full-time
equivalents)
Academic
Non-academics		 Average staff number 2025
Number of
Fellows
Full-time
equivalents
57
3
110
60
110		 Average staff number 2024
Number
of Fellows
Full-time
equivalents
56
3
106
59
106		 Average staff number 2024
Number
of Fellows
Full-time
equivalents
56
3
106
59
106
106

At the Balance Sheet date there were 45 (2024: 45) members of the Governing Body. During the year the number receiving remuneration was 44 (2024: 45) who are included in the 60 (2024: 59) 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:

2025 2024
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 37

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

8a. Key management personnel

ey management personnel
Total Total
2025 2024
£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. 897 887

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
2025
£000
213
80
21
314		 Provisions
(Note 16)
2025
£000
-
-
-
-		 Total
2025
£000
213
80
21
314		 Employer
contributions
2024
£000
248
1
166
415		 Provisions
(Note 16)
2024
£000
(987)
-
-
(987)		 Total
2024
£000
(739)
1
166
(572)

Page 38

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

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
76,265
1,565
-
-
77,830
13,316
1,658
-
14,974
62,856
62,949		 Furniture &
Equipment
£000
1,363
57
-
-
1,420
1,080
43
-
1,123
297
283		 Energy
Regeneration
£000
75
-
-
-
75
32
4
-
36
39
43		 Library
Books
£000
210
20
(6)
-
224
95
15
(6)
104
120
115		 Information
Technology
£000
272
63
-
-
335
151
20
-
171
164
121		 Motor
Vehicles
£000
30
16
-
-
46
7
5
-
12
34
23		 Total
£000
118,235
1,721
(6)
-
119,950
14,681
1,745
(6)
16,420
103,530
103,554

The insured value of freehold land and buildings at 30 June 2025 was £181,161k (2024: £175,744k).

Page 39

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

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 2025, 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		 2025
Total
£000
264
-
-
264
264
2025
Total
£000
103,518
4,671
(2,651)
(685)
1,127		 2024
Total
£000
264
-
-
264
264
2024
Total
£000
101,345
2,708
(1,549)
1,108
(94)
105,980
40,577
9,202
53,643
2,558
105,980		 103,518
39,729
8,127
54,230
1,432
103,518

Investments held by the College also include an additional £1 (2024: £1) investment in the subsidiary company at cost. (see note 27)

Page 40

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

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		 2025
£000
29
169
14
212
2025
£000
177
724
117
4,938
5,956
2025
£000
1,772
1,569
-
3,341
2025
£000
470
1,430
113
654
191
21
202
1,371
29
4,481		 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
209
25
200
1,093
100
3,835

Page 41

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

15. Creditors: amounts falling due after more than one year

Bank loans
Fee deposits
Pension provisions
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		 CEFPS
£000
-
-
-
-
-
-
-
-
-		 CCFPS
£000
1,054
21
(101)
54
(115)
-
-
-
913		 USS
£000
-
-
-
-
-
-
-
-
-		 2025
£000
4,465
571
5,036
2025
£000
1,054
21
(101)
54
(115)
-
-
-
913		 2024
£000
4,935
1,019
5,954
2024
£000
2,011
16
(17)
75
(44)
-
(952)
(35)
1,054

16. Pension provisions

Page 42

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

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
34,595
4,707
-
(408)
38,894
16,817
7,978
6,667
1,682
368
457
1,059
2,801
1,065
-
38,894
-
-
38,894
-
38,894		 Unrestricted
permanent
endowments
£000
40,265
-
-
(521)
39,744
-
-
-
-
-
-
-
-
-
39,744
39,744
40,444
(4,935)
4,199
36
39,744		 2025
Total
2024
Total
£000
£000
74,860
74,423
4,707
230
-
-
(929)
207
78,638
74,860
16,817
12,330
7,978
8,027
6,667
6,742
1,682
1,702
368
373
457
462
1,059
1,068
2,801
2,820
1,065
1,072
39,744
40,264
78,638
74,860
40,444
39,596
(4,935)
(5,405)
43,093
40,634
36
35
78,638
74,860

Page 43

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

18. Restricted Reserves

Reserves with restrictions are as follows:

Consolidated
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		 Capital
grants
unspent
£000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Permanent
unspent and
other
restricted
income
£000
-
3,546
3,546
-
-
1,014
72
-
4
-
(769)
3,867
-
3,867
3,867
1,370
1,537
490
233
67
75
64
31
-
-
3,867		 Restricted
expendable
endowment
£000
6,521
-
6,521
1,802
-
126
201
(51)
(200)
(612)
7,787
7,787
-
7,787
2,966
518
97
1,039
38
-
13
7
-
3,109
7,787		 2025
Total
£000
6,521
3,546
10,067
1,802
-
1,140
273
(51)
4
(200)
(1,381)
11,654
7,787
3,867
11,654
4,336
2,055
587
1,272
105
75
77
38
-
3,109
11,654		 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

Within Other Funds the Pepys Building Restoration Fund at the year end was £2,798k. Expenditure to 30 June 2025 totalled £806k which, upon completion of the project, will be transferred from Restricted Reserves to Unrestricted Reserves.

Page 44

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

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		 2025
£000
4,360
1,745
-
(2)
(4,087)
198
(26)
685
-
(4,135)
162
(1,100)
2025
£000
4,135
2,651
(5,797)
(1,721)
(732)
2025
£000
(162)
(470)
(632)		 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)

Page 45

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

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
2024
Cash
Flows
Acquisitions
& Disposal
of
subsidiaries
New
finance
leases
Other
non-cash
changes
Changes in
market
value and
exchange
rates
At 30
June
2025
£000
£000
£000
£000
£000
£000
£000
5,805
(2,464)
-
-
-
-
3,341
(470)
-
-
-
-
(470)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(470)
-
-
-
-
-
(470)
(4,935)
470
-
-
-
-
(4,465)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(4,935)
470
-
-
-
-
(4,465)
400
(1,994)
-
-
-
-
(1,594)

23. Financial Instruments

Financial assets
Financial assets that are equity instruments measure at cost less impairment
Other investments
Financial assets that are debt instruments measure at amortised cost
Cash and cash equivalents
Other debtors
Financial liabilities
Financial liabilities measure at amortised cost
Loans
Trade creditors
Other Creditors
24.
Capital commitments
Capital commitments at 30 June are as follows:
Authorised and contracted		 2025
2024
£000
£000
62,845
62,789
3,341
5,805
5,807
1,804
4,935
5,405
1,431
1,297
1,751
1,894
2025
2024
£000
£000
1,353
-

Page 46

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

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 in the prior year.

The latest available complete actuarial valuation of the Retirement Income Builder, the define benefit part of the scheme, 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).

Price inflation – Consumer
Prices Index (CPI)		 3.0% p.a. (based on a long-term average expected level of CPI, broadly consistent
with long-term market expectations)
RPI/CPI gap 1.0% p.a. to 2030, reducing to 0.1% p.a. from 2030
Discount rate Fixed interest gilt yield curve plus:
Pre-retirement: 2.5% p.a.
Post-retirement: 0.9% p.a.
Pension increases
(all 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

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
mortality		 CMI_2021 with a smoothing parameter of 7.5, an initial addition of 0.40% p.a.,
10% w2020 and w2021 parameters, and a long-term improvement rate of 1.80%
p.a. for males and 1.60% p.a. for females

Page 47

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

25. Pension Schemes continued

The current life expectancies on retirement at age 65 are:

2025 2024
Males currently aged 65 (years) 23.8 23.7
Females currently aged 65 (years) 25.5 25.4
Males currently aged 45 (years) 25.7 25.6
Females currently aged 45 (years) 27.2 27.2

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 2025, 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:

2025 2024
% p.a. % p.a.
Discount rate 5.50 5.10
Increase in salaries to 2030 2.75 2.90
Increase in salaries from 2031 3.65 3.80
Retail Prices Index (RPI) assumption 2.90 3.35
Consumer Prices Index (CPI) assumption to 2030 1.90 2.35
Consumer Prices Index (CPI) assumption from 2031 2.80 3.25
Pension Increases in payment (CPI Max 2.5% p.a.) 2.85 2.00

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 48

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

25. Pension Schemes continued

The amounts recognised in the balance sheet as at 30 June 2025 (with comparative figures as at 30 June 2024) are as follows:

Present value of plan liabilities
Market value of plan assets
Net defined benefit asset/(liability)		 2025
2024
£
£
(5,119,359)
(5,595,887)
4,206,110
4,541,294
(913,249)
(1,054,593)

The amounts to be recognised in profit and loss for the year ending 30 June 2025 (with comparative figures for the year ending 30 June 2024) are as follows:

Current service cost
Administrative expenses
Interest on net defined benefit (asset)/liability
Loss/(gain) on plan changes
Curtailment (gain)/loss
Total		 2025
2024
£
£
-
-
20,935
15,918
53,809
54,420
-
-
-
-
74,744
70,338

Changes in the present value of the plan liabilities for the year ending 30 June 2025 (with comparative figures for the year ending 30 June 2024) 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		 2025
2024
£
£
5,595,887
5,587,216
-
-
-
-
(310,558)
(284,996)
277,569
283,219
(443,539)
10,448
-
-
-
-
5,119,359
5,595,887

Changes in the fair value of the plan assets for the year ending 30 June 2025 (with comparative figures for the year ending 30 June 2024) 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		 2025
2024
£
£
4,541,294
4,541,875
100,584
17,245
-
-
(310,558)
(284,996)
(21,942)
(18,372)
223,760
228,799
(327,028)
56,743
4,206,110
4,541,294

Actual return on plan assets

(103,268) 285,542

Page 49

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

25. Pension Schemes continued

The major categories of plan assets for the year ending 30 June 2025 (with comparative figures at 30 June 2024) are as follows:

Equities
Bonds & Cash
Property
Total		 2025
2024
50%
46%
37%
42%
13%
12%
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 2025 (with comparative figures for the year ending 30 June 2024) 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		 2025
2024
£
£
(327,028)
56,743
(1,007)
(2,454)
9,787
(28,224)
433,752
17,776
115,504
43,841

Movement in net defined benefit asset/(liability) during the year ending 30 June 2025 (with comparative figures for the year ending 30 June 2024) 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		 2025
2024
£
£
(1,054,593)
(1,045,341)
(74,744)
(70,338)
100,584
17,245
115,504
43,841
(913,249)
(1,054,593)

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 50

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

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 £32k (2024: £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 (2024: £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 · rate of 2.7% p.a.;

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

· CPIH inflation in line with RPI less 0.8% pre 2030 moving to RPI with no adjustment from 2030 onwards;

· Increase in pensionable stipends in line with CPIH;

· 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 51

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

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.

2024 2023
Balance sheet liability at 1 January 0 0
Deficit contribution paid 0 0
Interest cost (recognised in SoFA) 0 0
Remaining change to the balance sheet liability* (recognised in SoFA) 0 0
Balance sheet liability at 31 December 0 0

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		 2025
2024
£000
£000
213
248
80
1
21
166
314
415

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.

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

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

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

Page 52

MAGDALENE COLLEGE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS (continued) YEAR ENDED 30 JUNE 2025

26. Related Party Transactions continued

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		 2025
2024
29
29
7
7
1
2
1
2
2
-
-
-
1
1
-
-
-
-
1
1
1
1
1
1
44
44

The total Trustee salaries were £726k for the year (2024: £705k).

The trustees were also paid other taxable benefits (including associated employer National Insurance contributions and employer contributions to pensions) which totalled £170k for the year (2024: £182k).

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.

Page 53