Lucy Cavendish College University of Cambridge Annual Report and Accounts For the Flnancial Year Ending 301h June 2022
Lucy (WdISh College Unwsiry ol CaMb(lge Contents Contents t)crIption Members of the Governing Body Pages Referer7ce ond Administrative Details Report of the GOvning B(Y Corporate Governonce 23 Responsibilities of the Trustees 25 Report of the Auditors 26 statement of Princip05 Accounting Policies 29 Consolidated Statement of Comprehensive Income ond Expandrture 38 Consolidoted Statement of Char¥Jes in Reserves 39 Consolidated and College Balance sheet Consolidoted Coshflow Statement 41 Notes to the Accounts 42 For th8 Finoncial Yeor Ending 301h June 2022
Lvcy Cavendish College Impiersiry ol C3mbrKtye mbèrs oftiie Governing Body dLKin9 the Ye to 30" jur 2022 Members of Goveming Body during the year to 30 June 2022 Presidenr Alireza Bahn Madeleine Aikins PHD DBE CBE FASS Patricia, PHD DSC. Sentor Scient15t. Cavendish Laboratory Professor Sabine MD PHD MRCPSYCH. Professor, Bahn LaboratOry* University of Cambridge Renan, DPHIL. Affiliated Lecturer and Brttish Academy Research Fellow, Faculty of History.. TutOT. Lucy Cavendish College Jurgen. PHD, University Lecturer in Structural Mechanics in Engineerin8 Jennifer, BSC, Director. Careers Service. University of Cambridge Jacqueline Chryscillian MA VET MB PHD DVA DIP ECVAA MRCA MRCVS, Academic Lead in the Pauline Brown Clinical Skills Cent. Department of Veterinary Medicine, University of Cambridge to 30September 2021 Professor Ed, Professor of Psychiatry, University of Cambrtdge Professor Ruth MA PHD FIMMM FINSTP CPHYS, Profeswr, Materials Science and Metallurgy, UnTriersity of Cambridge- Research Metitor in the sciens, Lucy Cavendish College Isabel Clare Huntingdon, BSC MPHIL MPHIL PHD. Consultant Clinical & Forensic Psychologist, NIHR CLAHRC East of England," and Cambridge Intellectual & Developmental Disabilities Research Group. Department of Psychiairy, Universtty of Cambridge, Tutor, Lucy Cavendish College Professor Marie aaire, LLB BCL MEM DPHIL. Affiliated Fellow of the Centre and Leverhulme Trust Visiting Professor with the Bennett Institute for Public Policy, the Centre for Environment, EnerEY and Natural Resources Govemance IC-EENRGI and other partners Bruno. BEng, MBA, ExecutNe Director of the Entrepreneurship Centre, JBS The Rev'd Canon Adrian, BA MA MTH FRCO FRSA, Vicar of the University Church of St Mary the Great. Rural Dean of Cambridge North Dr Elizabeth, Medical Member of the First fier TTibunal (Mental Health}- the School of Clinical Medic4ne Ethics and Law Lead for the courses in Clinical Medicine, Tutor, Lucv Cavendish College Mr Christopher, BDS MFDS MBCHB FRC. Consultant, Oral and Maxillofacial Surgery, CambrÉdge Universlty Hospitals NHS Foundation Trust. Alexander, BA, MPHIL, PHD. College Assistant Professor in English, Lucy Cavendish College Jvlian, PhD. Researcher in image processin& Department of Applied Mathematics and Theoretical Phy5iC5. University of Cambridge Anna, MSC PHD, Independent Senior Research Associate. Department of Biochemistry, University of Cambridge.. Tutor, Lury Cavendish College Jane. BSC PHD, Senior Reseèrch A550Cjate in in the Sthool of Clinical Medicine, University of Cambridge and Tutor. Lury Cavendish College Emily, PHD, College Teaching Officer in Law, Lucy Cavendish College to 30 September 2021 Jane Suzette BTEC FMLS PHD, Honorary Research Scientist, Public Health England,. Senior Tutor, Lucy Cavendish College JohnHenry IHankl, PHD, University Assistant Profes50T in Caribbean History, University of Cambridge Nooman, MBA, Plead of Life Sciences 2nd Healthcare at Silicon Valley Bank for EMEA Professor Henriette PHD, Professor in Language Acquisilion and Cognition, Faculty of MMLL, Lucy Cavendish College- Vice-president and Research Mentor in the Arts Margaret christi BA MA, Domestic &ur5ar and Wine Steward. Lucy Cavendish ColleBe Derek, Chief ExecutNe. Babraham Bioscience Technologies Katie, BM MA. CGCM course tutor appointed by the Clinical Schools Mark, MA MPHIL PHD PGCE. Admissions Director Baker Becque Blakeslev BrearSey Bullmore Cameron Clare Cordonier- SegBer Coita Daffern Fi5tein Fowell Freer Gilbey Git Goodall Gordon Greatorex Gonzalez Haque HendTiks Houghion Jone5 Keller Klng For the Finoncial Year Ending 301h June 2022
Lucy Cavendish College Unpieryry of Cambri(Jge Members ofthè GO[hIng Btyjy during the ¥èJr to JunÈ 2022 Lloyd Richard, MMUS PHD MBIE MSC PHD FRCPATH Human Anatomy Centre Manager, Department of PhysioloEY, Development and Neuroscience, University of Cambridge Annelte 6SC PHD, A5515tant Senior Tulor (Graduates). Lucy Cavendish College, to l Jufte 2022 Mary PHD, Undergraduate and MPhil supeThisor in Education. Universtty of Cambridge,. Tutor, Lucy Cavendish College, from 23 February 2022 Poorna LLB LLM DPHIL. College Teaching Officer in Law from l Ottober 2021 Howard, PHD. Leciurer in Conservation Leadership. Fauna & Flora International, Tutor, Lucy Cavendish College Eileen Mary BSC MPHIL DPHIL, Tutor. Lucy candishCO{1ese Karen, MA MPHIL EDD PHD MCIL FRSA. Dirertorof Academic Development & Training for International Students. Language Centre, University of Cambridge. Tutor, Lucy Cavendish College Quie Marissa, PHD. Research Associate. Departmeni of Sociology, University of Cambrid Rath Spivack Orsola MA PHD. Senior Research Assotiate. DAwfp. University of Cambridge to 30 September 2021 Amber PHD, Binks Autism Neuroscience ReSe8h Fellow, University of Cambridge: Tutor Lucrf Cavendish College, to 31 March 2022 joanna BSC. Development Director, Lucy Cavendish College Dr Matthew, MA PHD, Teaching Associate, Department of Sociology and Social Sciences Research Methods Centre, University of Cambridge Professor Neil. MST DPROF. Faculty IPwofe550r-levell in Management Pratlice, Co-Director of the Cambridge Centre for Social Innovation- D1Ctor of the Master of Studies in Social Innovation Programme. JBS Joe, MA PHD University Associate Profe550r in Education, University of Cambridge Mahon Murphv My500r Nelson Nu8ent Ottewell Ruigrok Ryan Sparkes Stoit Sutliff Sanders Talmi Thompson Tonkin Vinnicombe Deborah, MA PHD. University A55iStant Profes50r in Psychology, Universily of Cambridge Lesley Margaret MA MA FCA. Bursar, Lucy Cavendish College Suzanne, Librarian, Lucy Cavendish College Alison Annette BA MA Dip RSA. Dean, Praelettor. Registrar, Steward, Secretary to Council and Secretary to Governing Body. Lucy Cavendish College Helen BENG MA. A551Stant Direclor. Head of Group ProcurernenL University of Cambridge,. Director of Southern Universities Management Services Dr Shona BSC PHD, Research Group Leader. Division of Microbiology and Parasitology. Department of PBrhology. University of Cambridge. Tulor, Lucy Cavendish College Vivian Wei Man MA MB BCHIR MRCP. Joint Course DirectorCGChA, Wain Wilson Yiu For the Finunciol Year Ending 301h June 2022
Lucy CJbTTh4ish College unIverTy of CambrKlge Relerence orKI Administralwe Detoil Reference and Administrative Detail Lucy Cavendish College Lady Margaret Rood Cambrksge CB30BU Charliy Regisrrotion Number.. 1137875 CharityTru$tees See list on previous page Senlor Officers pre$id&nt: Professor Dame hlodèleine Atkin8 PhD DBE CBE Fo%S Vice-PreSKlent.. Prolessor Henriette Hendrks PhD Senlor Tutor.. Dr Jone &eoroEex B Tec FML5 PhD Bursar. Mrs Lesley Thompson MA FCA Prinelpal Advisers Actuarie CortwrigFkt Group Mill pool House Mill Lone, Godalming Surrey GU7 IEY Propeity Valuers & Conwltqnt&" BKJwells stonecross Trumpington Hi9h Street Combridge CB22 9SU Auditors: Price boiley LlP Tennyson Holtsa Cambridge Business Park Combrtage C84 OWZ Bonkern: Borcloys Bank 9-11 St Andrews Street Combridge C82 3AA Securlties Managers: Smirh & Williomson 25 Moorgale London EC2R 6AY Securttle$ Managers: UBS Weojth man0MeTht (UK) Lt Tennyson House I Curzon SEreet L(b¢)n WIJ SUB Ftsr Ihe Financial Year Endng 3Qth June 2022
Ltscy Cavendish College Univei>iy <(aMbr1e Report of the Governing 8ody Report of the Governing Body Lucy Cavendish College was founded in 1965 as a Collegiate Society. Initlal]y a graduate Foundation, it admitted it5 first undergraduates in 1972. It became an Approved Foundation of the UnTrversity of Cambrid8e in 1984 and then in 1997 it was incorporated by Royal Charter and achieved full college status as a College for wornen over the age of 21 who were matriculated into the UTriversily as full-time undergraduales or as part-time or full-time postgraduates. The College is an autonomous. self-govern5ng community of scholars and one of the 31 colleges within ihe University of Cambridge. The College is a registered charity (number 11378751 regulated by the Charity Commission aFTrd its registered office is Lvcy Cavendish College, Lady Margaret Road. Cambridge C83 08U. The College in conjunction wirh the Untversity provide5 an education of the hi8hest quality through small group teachin& academic supervision. library. computing and cultural facilities, meals and living accommodation, wrth appropriate support for students in personal or financial need. In March 2019 the Governin8 Body took three important decisions: that the College should Brow substantially from c.400 students to c.l.000 students maintaining a majority of postgraduate students. that the admissions policy should be changed so that from October 2021 the College would admit standaTd-age (generally 18+1 students of any gender- and that the historical DNA and mission of the College-to open the Cambridge door to talented and exceptional students from undei-represented and non-traditional backgrounds - should remain a fundamental aspect of its future such that Lucy Cayendish would, uniquely in Cambridge, become broad representative in its UK student body of our national Society. At postgraduate level. the focus was to become the 'go-to' college for students pursuing interdisciplinary advanced learning or research, focused on the complex issues facing humankind and our planet as captured in the UN Sustainable Development Goals IUN SDGsl. We woukl also seek to increase the number of full or partial scholarships that we could offer international Masters sludent5 from non-traditional back8rounds or urider- served communitie%. However, followin8 the late chan8es in the way A Level results were tèlculated in summer 2020, the Trustees agreed to advaCe acceptance of 18 years + women in October 2020 in order to enable the University of CambridBe to meet tke increased number of undergraduote offer-holders who had rkow met their Cambridge offer. A cohort of 30. 5tandard-age. women undergraduates was accordingly admitted lo the College in October 2020 comprising just under haw of the new intake. In line with ihe decisions made in 2019, during the academic year 2021122 around 50%of the new undereraduate intake was made up of young men. Fellowship, post.doctoral and research positions are open to all applicants re8ardless of their gender. The College 15 primarily situated on a site just north-west of central Cambridge bounded by Madingley Road and Lady Margaret Road. Until 2021 the College wa5 based around three converted 19th century villas together with newer, purpose-built facilities including student accommodation, porters, lodge. library, teaching rooms, dining hall, gym and other commor) Spaces. To 5UPPOrt the planned gr0h of the College, during 2020121 one of the 19th century villas18arrmorel was demolished and a major new building development commenced to provide more student accommodation and facilities onsite172 en-suite rooms, informal learning spaces and 3 large new cafe}. Practical completion was achieved on this building on time and within budget in Augus12022. The work was undertaken with a deliberate focus on environmenial SU5tainability- in particular a commitment to achieving the eKactin8 Passivhaus standard for carbon emissions. The new building will be some 70% more energy efficient than the building il reptaced despite accommodating mafty more students and providing much-needed addifional facilities. The development has been made possible by a £16m loan facility to the Coltege from the University of Cambridge. 5ncludinE this new building there 15 now on51te accommodatÉon for 151 students Wlth a furrher 92 rooms lincluding 10 flats) owned by the College near its main sile. primarily at its student ntre at IIX) Hi5ton Road which was For the Finon¢iol Year Ending 3 June 2022
Lucy Cavendish College UnTriersiiy ol Cambr MEmbèrs of IhèGovarThng BtrJy during the yeor to 30" June 2022 opened in 2014. In order to provide more accommodation. the College also rents neighbouring properties and rooms from 5t John's College and at Mounr Pleasant Halls, which together provide a further J59 rooms an<J f lats. Finally, in order to provide additional accommodation to meet the increase in students admitted, the College rented 15 rooms from neighbouring Westminster College for 2021122 and 70 rooms from private student accommodation provider. Collegiate. at lis cale Street building- a very short walk from the College's main site. Aims and Objectives of the College The principal objects of the College. as set out in its Charter. are.. to advance education. religion. learning and rÈsearch in the Uni¥er5ity- to provide for persons who shall be member5 of the Univeisity a College wherein they may work for Degrees of the University or may carry out postgraduate or other special stud$ at Cambridge provided that no member of the College or any candidate for membership thereaf shall be subject to any test of a religiou5, racial. political or social charaiter. The College delivers these objettive5 by provision of the following.- Teaching facilities and individual or small-gmup teaching I5upeiS1orts}. as well as pastoral, administrative and academic support through its tutorial Ipastorall and graduate mentoring systems- Bridging Programmes for new students both at undergraduate and postgraduate level to ensure that they start their COUTse and time at Cambridse as well prepared as possible academically and personally,. Co-curriculor progrommes avaitable to all students throughout their course in well-bein& academic skills development, careers and enterpri5e- Sociol, cultural. musical, medltational, recreational and sporting facilities and progr8mmes,' A community in which students from a wide dtversity of backgrounds can feel genuiftely included and valued. while being supported to achieve their educational. fdreer and personal development ambitions. The College advances reseorch through: Providing Research Fellowships to outstanding academits al the early stage5 Of their careers, which enable5 them io develop and focus on theiT research in this formative period before they undertake the full research, teachiftg and administraiive duties of an academic posL Supporting research work pursued by its other Fellows through promoting interaction across disciplines, providing facilities and providing Stipends or grants OffeTing College membership to c.40 postdortoral associates each year and svpporting them to design a progrèmme of seminars. talks. a mentoring scheme. professionallteadership training and networking evenis Encouraging Short residential visrts from outstanding academics from abroad who are pursuing a research agenda that supports or strengthens that of our Fellows: and Encouraging the dissemination of research undertaken by members of the College for example through the'Live at Lucy, on-line weekly semit)ar series which has global reach and is then disseminated further via social media channels. publication of books and papers in academic journals or other suitable means. For the Finonciol Yeor Ending 30th June 2022
Lucy Ca¥eI5 College IMwei>ry of Cambyldge MerrerS of Ihe GoVernw Body duriTrJ th• y•oi to 3 June 2022 Public benefit The Trustees of the College have considered the Charity ComFnission'5 guidance on the operation of public benefrt under the Charities A£t 20113nd £onsider that the requirement5 have been met under the Charity's objects and activiiies. A full statement of the public benefit provided by the College has been lodged with the ChaTity Cornmi55ion. In summary, Ihe College provides, in conjunction with the Universily of Cambridge. an education which is recognised internationally as being of the highest stsndard for some 71X) students with plans to Increase this number to around l.OOD within the next three years_ This education develops students academically. supports their career ambitions. and promotes their leadership skilts. On gTaduation from the College they are enabled to play enhariced and effective executtve roles for the benefit of society around the world. This world-class education 15 provided to Students who have the highest 6cademic potential whatevertheir financial means or religious, racial, political or Cial background indeed the College aclively seeks applications from groups currefttly underrepresented in Cambrid8e and has developed 3 unique on-line programme, the Academic Enrichmer)I Programme. 10 SUPPOrt improved academic attainment within its partner schools. The College is Participating in the University's new Foundation Year Programme and will be welcoming five students for the next academic year as part of our new cohort. The resident members of the College. boih students and academic slaff, are the primary beneficiaries and are directly engaged in education. learning or research. The Presi(Jent and Fellows of the College receive a riumber of benefits as beneliciaries comprising small research. book or travel grants etc. These benefits are provided with the irtrtentiOTT of furthering the College's aims. primarily that of advancing research. Some meals are also provided to the President, Fellows and staff of the College up to a set allowance. The amounts of the benefits provided are obiectivety reasonable, measured against the academic benefits made available to other beneficiarie5 of the College. Beneficiaries also include students and academic staff from other Colle8e5 in Cambridge and from Cambridge University more widely together with visiting ocademic staff and students fTQrn Other hisher education institutions. In addition, the wider public has access to the College through several 5erie5 L)f events, talks and seminars- many now held on-line and disseminated funher through blogs on the main Colge website avallable to all and via social media channels. As a result of periods of Covid lock-down ènd travel restrictions the publlc seminarlevent series wa5 re- conceived and launched on-line as 'Lucy in Lockdown, and Subsequently 'Live from Lucy, This has proved beneficial in sEnificantly extending the profile an(J 'reach' of these events. thereby enabllng hundreds of members of the public. who would not otherwise have been able to travel to the ColleEe. to hear excellent speakers on a range of topics and to participate in (liscussion WFth them and with a diversity of participant views. The Covid pandemic has required the College TO adapt and find new ways of engaging with public audiences ènd it is likely that these innovattons will be retained. The College has, for the last decade, hosted an increasingly important annual national prize for fiction. the Lucy Cavendish Fiction Prize. open to women novelists over the age of 21 years who have not yet been published. It has been sponsored by the literary agency PFD forthe last 7 years an(1, following a tompetitNe process during 2021, a new spoNsorship agreement with them is in place until 2023. In this its 12th year the Prize attracted aroLrnd 600 entrants of high quality. The winner wa5 Hannah Stapleton with her novel.. Blue Teor5. The Prize continues to be very successful in launching literary careers with 3 number of shortlisted For the Finoncial Yeor Ending 30" Jurbe 2022
Lucy Cavtndssh College UnNerity O[CaMbrge Mernbers ol Goveming 9(V c#JDrKJ the yeurto 20" Jur* 2022 writers again seeing commercial success during the year. There is also a parallel Fiction Pri2e for Students. The College participates from time to lime in public schemes such as Open Cambridge ond the National Open Gardens scheme. 5¢ope of the financlal ststernents The con501idated financial statements cover all the activities of Lucy Cavendish College and its subsidiary companies, Lucy Cavendish Trading Ltd and Lucy Cavendish Estates Development Ltd These accounts are presented in the fom)at of the Recommended Cambridge College Accounts IRCCAI which complies with the 2019 Higher Education SORP IStaiernÈnt of Recommended Practice." Accounting for Further and Higher Education). This SORP reflected the changes to UK Generalty Accepted Accounting Practice IGAAPI followin8 the issue of the revtsed Financial Reporting Standard IFRSI 102 which came into effect for financtol years beginning on or after l January 2019 The commentary that follows is intended to give the readers of the financial #atements an overview of the rinances and operarions of ihe College. Qperational Context Planning for and implementing the College's expansion and development The College ha5 continued to develop and implement its plèns for the next five years when, following its decision to change its admissions p)olicy to become a standard age. mixed college from October 2021, it aims to mvre than double the %ze of its studeni body in support of its mission to provide sigriificantly more opportunities for talented students fvorn groups who are traditionally under-represented at Cambridge and for those whose advanted learnin8 and research address key 21" century problems. Lucy Cavendish continues to be the only colge currently at Cambridge prepared to grow at scale and pace and to align its own evolving mission wtth the University's priorities. As noted In the Introdurtion, a considerable programme of estates developmeot has been achieved over the last financial year with the rtew building at Lady Margaret Road achieving pr3ctical completion in August 2022. The building provides 72 study bedrooms and a large new cèfelsocial space which encourages and support5 informal learning on the ground floor and is designed to PJssNhaus standards to reduce the College's carbon emissions into the future. Indee¢J. the new building should be 70% more energy efficient than the building it replaces as well as providing six times more study bedrooms. The intent behind our Estates Strategy IS that the Lady Margaret Road site will predominantly caler for OUT first-year undergraduates given its outstanding eentrèl location. Other undergraduates are housed in accommodation nearby. Our postgraduates are housed principally in purpose-built $1udent accommodation near the Colle8e. The planned growth in stu(Jent number5 and the major estates developments have necessitated the College spendin8 a good deal of time over the tast two years in developing and refInin8 the financial model which it created in 2020 and which can be used a5 a tool to assess the likely outcome5 financially of different scenari05 and sensttivities including a range of (lownsEde risks. Thts is updated regularly to reflect actual For the Financiol Yeor Ending 30 June 2022
Lucy Cavendish College (mreN[Y ol Cèmbiidgè Memb8f$ of thefy)verning Body during ihe yoor to 30-JurÉ 2022 financial outcome5. The model show5 that the College will continue to achieve finoncial su5t8inèbility over the period130 years) coveyed by the model. Summary Financial Results The followin8 section of this Report details the main feattjres of the Financial Results. Covid continued to have an impact as conferences were still very limited with ongoing lockdowns and Iravel restrittions in various parts of the world. A150, on the down side. a rnajor drrver in the overall position of the College was the very considerable fall in the investment Portfolio with stock market valuation5 at the year-end significantly affected by the war in Ukraine and its Vrertainl•eS together with t)ost pandemic supply issues. A key p051tive driver for the College was that once again the Colleges. Fund Committee agree(I that its graftt to colleges Could be used to defray operating expenditure rather than being required to be invested as endowment and the College was granted £1.203m from this sourcÉ. The College was also fortunate to receNe a very significant donation of E2.6m from Christina and Peter Dawson during the year. In accordance with accounting srandards, the total sum is included with the income for the year but the gift was made to support experkditure in outreach and student well-being over the next ten years so more ot.the relevant expenditure will appear in future years. accounts. The figures also reflett the stage of development of the construttion of our new st{ent accommodation and café building at 30 June 2022 with £8.75m capitalized durrng the year and £8.4m drawn down from the University Loan facility provided to fund thi5 projett. The total surplus lincrease in consolidated net assets1 of the College for the year was £732kl20/21.. £1.715m comprisinE an unrestricted surplus of £902k120121 deficit of £873kl; a restricted surplu5 of £2.129m 120121 surplus of £210kl.' and a deficit of endowment Income of £2.299m120121 SL¢rplus of £2.378ml, primarily arising from a 1055 ofj investments of £2.d77m as a result of the downturn in markets (20121 gain of E2.666ml. As eKplained above, IFte p051tion on the unrestricted surplus was POSItTvely affected by the agreed use of the annual Colleges, Fund grant of £1.203m120121 £1.088ml for operational expenditure rather than its normal allocalion to endowment and by the inclusion of ihe whole of the Significant donatioft of £2.6m. Funding Overall income betore gains on investments and on pension schemes was £11.8m120/21'. £6.4ml. The Colle8e'5 main 50urce5 of income are academic fee5 £3.3m120121= £2.3m), accommodation & Catering £3.2m120121: £1.67ml arHd donations & endowmentsof£4.8m120121'. £1.7ml Incorne 2021122 £000 2.912 383 3.IlJO 2020121 £0 2.022 sludents: college fees Cambridge Bursaries accommodation & catering 25% 32% 26% 1.667 26% Conference accommodation & catering Investmeni income Donatrons and endomnents Other income 385 4.781 316 1,739 41% 27% 165 11,816 343 6,377 | Total loo% For the Financial Year Endin9 31yh June 2022
Lucy Ca*rK15sh colge unpErY ofCamt(MSge Èmbèrs of Ihe (>Mming 8oLly duriw the year 10 3U June 2022 Empenditure Total expenditure was £8.6m120121.' £6.3ml. comprising staff costs £3.58m120121.. £2 55ml, other operating experlture £4.39m120121.. £3ml and the balance being depreciation of £666k120121.. £736kl. This expenditure is primarity allocated to Education £3.9m120121.- £2.8mJ. and Residence5, Catering and conferences £4.3m120121: £3.Iml. At 30 lune 2022 the value of Ihe endowment Was £13m {20121.- £15.3ml, while the College's overall investments totalled £17.7m120121". £17.7ml, mainly invested in the College's amalgamated investment portfolio. Overall corksolidated net assets were £46.8m120121'. £46ml- As ihe full cost5 of education are not met by Academic Fees and Charges. (ksnalTrons and rerurn on endowment are tritical elements to bridge this gap in 811 Cambridge colleges. However, colleges differ enormously in the size of their endowment and herKe the return available from it. An arrangement exists for the better-endowed colleges to support those colleges with smaller endowments through the Colleges, Fund. As a college wtth one of rhe smallest endowments, Lucy Cavendish College is regularly a beneficiary of this Scheme and in ihi5 year receTved £1.203m by way of a grant and this is included in donatioS and endowment income above l£1.088m in 201211. Athievements and perfonnancè Academic and College Community The ColleBe currently ha5 approximately 639 fee payin8 Itotèl 678 including 'exempt'l students from all walks of life an(1 from all over the world120121471 and 5281 Nationally and localty. students were recognised in a range of fields. Amongst many successful students.. Atexandra Breckenridge ILaw Tripos) was awardeil the Clifford Chance C J. Hamson Prize for the Law of Contract and the E.C.S. Wade Prlze for Constitutional Law. Nadia Capatlna Icambridge Graduate Medical Course) received the Blair Bell Research Society be srudent prize award at the Royal College of Obstetricians and Gynaecologists Annual Acèdernic Meeting. Bonnle Cheung Iveterlnary Medicine Triposl published at) article for Veterinary Evidence entitle(J 'ln dogs with atopic sktn disease, is lokivetmab more effective than oclacitinib in reducing the score of a recognised Scoring system?, Ruby Pillai Imst in Entrepreneurshipl was appointed Patron for the official History of Parliament Trust's book, 300 Year5 of Leadership and Innovation. Rosa Prosser INatural Sciences Trisxjsl had their documentary series 'Careers to Solve the Climate Crisis, launched OWT the Cambridge 2ero YouTube channel. with the series, final episode premiered ai the COP26 'Green Career Pathways. event. Adele Rickerby (Mst in Creative Writing) won the 2022 Florence Staniforth Student Fiction Prize. Agnie5zka Stowik IPhD Computer Sciencel won the Young Al Researcher 2022 Award at the Perspektywy Women In Tech Summit in Warsèw. Poland for the work accomplished during their PhD. Eric Yip (Econornics Tripos), with their work Frictjtives. was announced as the youngest ever winner of the National Poetry Competition. For the FIrne1[ Year Ending June 2022 10
Lucy Cavendish Colle9e Univer91y ol CambrKYg M8rnbers ol th+fy)v*rnirg 8ody duriftg yeor to 301h June 2022 Many of ihe College Fellows also achieved noteworthy success durin8 the yeèr With Some brief edited highlights a5 follows- Professor Marie-claire Q>rdonier Segger chaired the Climate Law and Public Policy Conference, in preparation for COP26 co-hosted by partners from the University of Glasgow ènd the Untyjersity of Strathclyde, and featured keynotes and experts. plenary with leatling prartitioners. researchers and academics in law, climate change, economics, politics. land economy, development studie5. Fellows, Research Associates, and students from Lucy Cavendish College later played a key role at the UN Framework Convention on Climate Change IUNFCCCI 26th Conference of the Parties ICoP26 in Glas8ow, Scotlandl Professor Neil Stott published 'The 8luefield Experiment in Co-op Economics, focusing on collective ar cooperatTrre ways to organlse for social justice in our histories. which we can learn from to tackle the wicked problems of our day. Dr Elizabeth Fistein published on support and treatment for people with Prader-willi Syndrome in Science Dlre¢s InternotionolJournol of Low and Psy(hiotry Cir Rithard Lloyd was appointed as Visiting Fellow èt the Cranfield FOnsiC Institute to develap collaborative research projects with 3 medico-legal focus. Research Fellow Dr Nlamh Mulcahy published her debut book with Routledge 'Closs ond Inequality in the rime of Finunce. explores the effects of the 8radual liberalisation of c3Pital markets and the expansion of consumer credit on poorer households in the United Kingdom, with particular aitention to the precariousness caused by a lack of savings and a reliance on debt. Research Fellow Dr Suhail Dhawan recenred the Colle8e's Dame Anne Warburton Award. Based at the Kavli Institute for Cosmology, Institute of Astronomy, Cambridge. his research is based on measuring dIstanS to explodrng stars to infer how fast the universe is expandinE. FeU¢Mknmoner Professor Dalia Leinarte. publithed ? new book with Bloomsbury tItd Family and the stote Soviet LithuoniG. challenging the commonplace 'kitchen culture, rdea that ihe home was a site of silent resistance where traditional Lithuanian values continued to be nurtured. Fellow-commoner Ann Llmb was made è dame In the 2022 Queen's Birthday Hanoursllst for services to young people and philanthropv. Honorary Fellow Baroness Kennedy led the team behind the rescue of women judges from Afghanistan working with international and local rtners, including Sir Charles Hoare, to evacuote wornen at risk from AfEhanistan to Greece. Honorary Fellow and former Vi¢elharKtllor of the Uftiversrty of Cambrldge Professor Dame Alison Richard published an account of Madagascar's past and present, The Sloth Lemur's Song in March 2022. It 15 far-reaching account of Madagascarfs past and present Emeritus Fellow Dr Sarah Gull. formerly Joint Course SupeThisor for the Graduate Medicol Course at West Suffolk Hospital and a Consultant Gynaecoloeist was ordained Deacon in St Edmundsbtsry 3nd Ipswich We Congratulate all these Fellows and the many others who won competitive grants for their research, establtshed research networks or intematioftèl research projects. and who published books or in prestEIous journals in the course of the year. Dlversltyand wideningaccess Following the success of our first120211 intake under our new admtssions polky, the 2021-22 admissions round posed new challenges. The legacy of the pandemic continued lo be felt in its impact on applicants, educatlon, with the disadvanlaged siudents upon whom the College is particularty focused being parttcularly affected. Nevertheless, fpllowing a 5ucce55ful virtual adrni55ions round, 134 new undergraduate students are confirmed to commence their studies at Lury Cavendish thls autumn. Once again, we have met our target of admitting a majority from backgrounds that are either disadvantaged or underrepresented at Cambridge, wth over 64% of our new students comin8 from such backgrounds. We are also on track to For the Finoncial Year Ending 201h June 2022
Lucy Cavendtyh College uhivèryiy of CJnbTidge Maybbets of the Governing Bcdy during the yeo¥ to 30" Jure 2022 become the first Cambridge College to admit over 90% of our UK entrants frorn maintained Sector schools, whlch is a significant mlleslone as we look to become broadly representative of national society by 2025. when analysed using socioeconomic metriC5. over 25% are from the two lowest POLAR4 quintiles, indicatinB areas of stgn¢ficant under-participation in HE. and over 35% from the two lowest quinliles on the Index of Multiple Deprtvation, indicating lnS of significant soticeconomic disadvantage. Once agaln, these figures SiBnificantly exceed the Universily-wide averages at l)oth CambridEe and Oxford. Indeed, they are significantly above what any C3mbiid8e College ha5 ever achieved in the past. Our post8raduite intake. meanwhile, is projected io be c.300 full-time and part-time students. with over 70 countries represented on around 150 courses acr055 the University. We continue to raise money for new scholarships aimed at pro8rammes related to the UN Su5taiftable Development Goals, along with others whlch target international students from deprived backgrounds. We are very grateful to our benefactors and legators who have enabled these exceptionol students to study and researth at the highest level here in Cambridge. Seeking donors io esrablish more such studentships remains one of the three foci of our current fundraising efforts. The past atademic year has also seen the first full year of our Academic Enrichment Programme IAEPI.. an online, sustained enEaEement outreath programme thal is one of the few specifically desi8ned to raise a¢ademic attainment in Sixth Form students through 3 supplementary curriculurn of academic enrichment classes. This followed on from Ihe Year 11 Summer Preparation Programme mentioned in last yearfs report. Roughly 550 studenls We enrolled on this wogramme. which recently conduded with a 'return- le8. summer school that helped prepare the students for applying to highly selective universitie5, such as Oxford and Cambridge. We have since launched a new Year 11 programme. which wll turn into rhe second year of the AEP this autumft. Our work to SUPPOrt these students has recefttty benefited from a successful bid to the newly established Isaac Newton Trust Widening Participation and Induction Fund. which will allow US to significantly expand and profe$5ionalise our provision. making the AEP one of the most well-developed and pioneering such programmes available anywhere within the sector. Student Support It is not of course sufficient mereFy to seek, attract and admit tslented students from under-represenred groups in society. Once at Cambridge, they need to be supported to achieve their academic potential, their personal and professional development, and their career aims. Too often there is a Bap between the outcomes on these measu$ between those from non.traditional backgrounds and their more socially and economically privileged peeTS. That is the case at Cambridge. So, given the mission of the College, il is doubly important that we dose these gaps and the last year has seen us pilot. evaluate. refine and implement rhree co-curricular support pro8rammes which will benefit the new intakes substantially. These progromme5 aTe: academic ski115 enhancement including extra tuition for example in matherDatics' well-being with an emphasis on resilience and 5elf-maftagement of a balènced lifestyle for all - as well as the availability of profe5sionèl counsellin& and careers & enterprise with excellent Co-ordination between the College and the Universivs Careers Service alongside a programme of events and opportunities unique to Lucy students. In order financialty to assist undergraduates entitled to student support, the College provides, throu8h a scheme operated in common with the University and other Colge5, bursaries Iihe Cambridge Bur53ry1 for those with limited financial means. Students over 25 years of age at the start of their course are automatically consldered for an enhanced award. In addition. the College actively gives other awards and bursaries to it5 undergraduate and graduate students comprising £397k in 2021122, compared with £260k in 2020121. We ère gratefvl to our donors who regularly contribute to these scholarship and haTdship funds. For the Finonciol Yeor Ending 3 June 2022 12
Lucy Cavendish College UnDJwsiiy of CwnbrKlge Nlembers or GoveroiTh) Body during ime year to 8 Junè 2022 Fundraising activities The College is registered wilh the Fundraising Regulator. It does not use external professional fundr3isers or commercial participators and carries out fundraising acttvities. primarily through its Development Office. in collaboration with the offices of Cambridge University Development and Alumni Relations and Cambridge in America a5 approprFate. In addition to seeking financial and other support for the College, the Development Office is also responsible for broader alurnni relations. The Lucy Cavendish Foundation Board in the UK and a North American sub-committee. both under the Chairmar)ship of HoTrary Fellow Mr. Derek Laud. provide strategic advice and support on major fundraising initiative5 as prioritised and agreed by the Governing Body. All members are volunteers. The Board is focused on potential high net worth donors wtth the capacity to make substantial or transformational 8Èfts to the College. The three major priorities are= substantial donations to augment the endowmeni of the College: gifts and donations to fund buildings and facilities in the Estates Master Plan: and scholarships for iniernational students from low-income backgrounds who wish to study Master5. or doctoral programme5 focused on the UN Sustainable Development Goals as part of their professional development for leadership roles in theiT home counlries. The benefit of virtual platforms as 3 communication tool was again demonstraled in alumni relatlons.. Zoom updating and keeping-in-touch sessions have been held with College members worldwide. with numbers attendinE gre3tEy exceeding those that could have been met face-to-face through conventional overseas trips Methods for soliciting gifts include face-to-face fiJndrai5ing by private meeting lintluding vi3 Zoom). the promotion of legacy glvin& direct mailings. giving through social media in the form of 'GNing Weeks. and opportunities for online 8ivin8 via the website. College also made use of challenge funding and match funding initiatives wherever possible. There is a clear statement on the College's website regarding use of data for alumni and fundraising purp05es. No mass sollcltation takes place without prior notification and opportunilies to opt out easily feature prominently in forms of communicaiion. Donor segmentation IsortinE donors into groups based on shared demographic char3cteristiC5 and previous enEagernentl is performed to ensure targeted and appropriate fundratsin8 communications with a maximum of four a year. Due consideration is given to whether potential donors might be considered vulnerable to ensure fair treatment. There have been no formal complaints made about fundraising during the 2021-22 academic year, nor in the previous year. For the Fina[01 Year Ending 30th June 2022 13
Lucy Cavendith College Univergry of CJmbr*l98 MeMS01 the Govwning Body duriry the yeoi to 30" Junè 2022 Financial Review Income Further detail regarding the different sources of income is given below: A¢ademic Fees and Charg- £3.295m {£2.312ml 43% increase The College charges- fee5 at externally regulated rates to undergraduate5 entitled to Udent support with those undergraduate fees generally being paid by k)an funding through arrangements approved by the Government fees determined by the College annually to overseas undergraduates and any Home/EU undergraduates not entitled to student support. The College receives a proportion of the fee5 charged by the University to graduate students based on a full time equivalent per capito allocation. Overall student numbers in College rose 5i8nificafttly during the year and total fee income aIso rose, though the amount re1Ve also depends on the mix of students. In 2021122. including visiting students, there were 265120121.. 1571 undergraduates and 374120121.. 3141 fee-paying postgraduates, of whom 99120121: 631 were part time. A further 39120121- 571 poslgraduate 5tudentswere exempt from paying fees. AISD included under this heading is income recerved relaring to the Cambrid8e Bursary scheme. The amount received increased by 32% as it relate5 to the number of students in any year eligible to receive it. This income is offset by expenditure on the scheme which also increased. Residences. catering and conference income-£3.19m l£1.667ml 91% increase This heading covers income received from students and from conference guests. The amounis received reflect both volume and charges. The College char8e5 accommodation, meal and service charges at reasonable rates 10 Its students. Income related to these areas increasèd by 86%. This increase resulted from greater student number5 but primarily reflects the rnuch lower income received in 2020121 because of rent reductions and refunds for catering as a result of COVID restrictions. The income derived from conferences has historically been critThl for the College's linances and significant efforts are made to fill rooms and provide a 8ood seNice to guests so that the College's ongoing costs are covered, particutarly during vacation periods. However. because of COVID. from March 2020 onw3rd5 almost no conference activity was possible and there was only a very limited amount èble to happen in the last financial year. Total income Teceived from conference accommodation and catering charges was up io a total of £90k compared with only £2k in 2020121 but this compared with income from conferen5 of £650k in 19120 (the first year io be affected by Covidl aDd £726k in 18119. Details of expenditure on all these areas is gNen later in this reporL For the Finonciol Yeor £nding 3(yh June 2022 14
lucy cenlS College uThrrYry ol CaMbrge Mwnt)ors d ttwGoveming BtrJy during the year to 30W&June 2022 Investment income -£385k1£316kl 22% increase: and ertdowment return tranSferd £503k I£426kl 18% increase Investment income represents dividend and interest receipts. The Governing Body Fellows are the Trustees of the College, govemed under the Trustee Act 2000. Their investment powers are defined in Statute 38 of the College's Statuies and they have overall responsibilitv over the College'5 investments. Governing Body has responsibilily for approving investment objectives, agreeing risk and return targetsi performance benchmarks and the investment manager structure. The Governing Body dele8ates the detailed aspeths of the oversighi of the investment arrangement5 to the Flnance & Investment Committee who in turn appoint investment managers to be responsible for day to day management of the investments in accordance with agreed guidelines. Overall, the financial objective of the Fund is to maintain at least the.real v31ue of ihe assets whilst generating a slable ond sustainable return to help fund the college's operations each year. To this end, a d¥¥ersified portfolto with a strategic a55et allocation including most or all of UK and Overseas Equities, Bonds. Cash. Altemative Investment5 and Commercial Property Is maintained with due regard for socially responsible investments consistent with the College's charitable status and its ethos. In October 2020 the Governing Body voted unanimousty to dlvest from direct holdin85 in fossil fuel compafties, adding them to the existing list of prohibEtions which includes amiaments, tobacco, and tar sands. The Cclle8e has for some years adopted a Total Retum approach which lakes account of capital gains and losses on inveslment as well as income. The total return target for our investment mana8ers 15 the Retail Price Indey rate of inflation plus 3%. During the year to June 2022 RPI was 12.1%11.47%1. The total return on the Investment portfolio for ihe year including additions was-12%1+20.2%1. On a five year annualised basis the total return has been 3.6% against a target of 7.5% IRPI +3%) These disappointing results reflect the 5i8nificant impact of a very poor few months for the portfolio after a year of very good recovery post pan<Jemic and years of very good perfomiance relative to the benchmark and against target. The return has heen affected by the relatively poor performance of growth stock5 and the relatNely positive performance of oil stocks and these are in exact opposttion to the relartve weightings within the portfolio. Within the College's Total Return Spending Rule the aim is lo dertve a Sufficient and regular return substantially to offset the Shortfall in funding for the College's core educational activities.. over recent years ihe Governin8 Body has approved a transfer of 3% to brirE the College more in line with Current views on 3n appropriate 'spending rate, to preserve capital in the endowment. This year £503k was transferred. representing 3% (compared with transfers of 3% in 20121, 19120 and 18119. 3.69% in 17118. 4% in 16117 and 5% in 151161. Donatlons and new endowments- £4781rn1£1.739ml 175% inC3$e Excluding the Colleges. Fund grant and rÈlease of income from earlier capital granls (deferred capital?, donations and new endowments increased by 450% as a result of the very significant donation detailed below. Donations and pledges came from 415 supporters1404 donor5 last year). The College raised £13.23 for every £1 spenl on fundraisin812020-21 £5.0517.9% of contactable alumnae made a gift12020-219.2%1 and 130 supporters gave to Lury for the first time12020-21 1601. The College receiveikregular gifts by Direct Debit, Standing Order or Recurring Cambridge in America gths from 93 donors12020-21851. 4.5% of philanthropic funds raised were from former students, 89.2% of philanthropic funds raised were from other indNiduals and 6.3% of phitanthropic fvnds raised were from organisations (trusts, foundations, corporates). In 2020-21 the comparative ratios were 17% fiom lomier snJdents. 63% ot philontmropic Irom Oihei individuals ond 20% ol pmilanthroplc funds roised wero from orgonisotions (trust& lourKlotions. corporates rhere are 108 members of the College's Legacy giving circle, the Anna Bidder Society. with 7 new members gained during the period. For the Finarcial Yeor Ending 30tn June 2022 15
Lucy Cavendish ColIegè Urbiveigly ol cathge Members OS Ehe Gov8fnirKJ eodyduiing thè yeor 10 30 June 2022 Benefactions from indNiduals to support stent bursaries. scholarships and prizes included ihe very significant gift of £2_6m from Christina and Peter Dawson. A pledge of £150k was made from Dr Jackie Spayne and David Lelth to establish the Lucy Cavendish- Trinity Global Heèlth Studentship- the first of five students at Lucy will arrive in autumn 2022. £12k from Emeritus Fellow Lindsey Traub. The late Lady Grantchester bequeathed £20k to fvnd the Betty Grantchester Studentship for four years. while the late alumna Alex Saville bequeathed £5k tD fund the Alex Saville Bursary for one year. £5k was received from Joshua Blakey. for the Blakey Mentorin8 Pro8ramme. Other 8enerous donatlons include.. £30k from College President ProfeswT Dame Madeleine Atkins. £15k from Emeritus Fellow Or Lindsay Tr3ub and £IOk each from former President Baroness Perry of Southwark, Senior Associate Dr Jean Wilson MBE and heT husband Professor Norman Hammond, Keith M3ddocks and alumna Dr Alison Rylands. Other significant donations were received from alumna Dr lane Dominey and her husband Jim Warwick, Emeritus Fellow Dr Ruih Jones. Fellow-commoner Dr Lorna Williamson and alumna Frances Grrffiths. Giving Week. which took place during May. raised £138.960, of which £68.000 was raised in advance as match funding12020-21 £160kl. All members of the Lucy community were represented among the donors. New relationships wtth corporate partners. trusis and foundations were fomied and existing rel3tionship5 strengthened. E200k was received from the Wolfson Foundation a5 a contributioft to the College's New Building, alongside £5k from SOC (the building's contractors). A further gift of £52,500 was recelved from the Ernest Hecht Charitable Foundation to supporr the College's outreach activities. Philanthropy ensured si8nificant enhancement to the Lucy Cavendish Lrfe enCeS Communty with philanthropic 5UPPOrt lotalling £53,¢J)O. Just over £30.CKIO of this was Used to support the proEramme and support STEMM studenls. Existing members Abzena. Astrèzeneca. Babraham Research Campu5 Phoremost were joined by Alchemab Therapeutics, Adrestia Therapeutics and Domainex. £28k was received from Santandei Univer51ties and £IOk from Seamark PLC/lqbal Bros Foundation. Peters Fraser and Dunlop IPFDI continued ils sponsorship of the successful Lucy Cavendish Fiction Prize and Cambridge Precision Limited generousty funded the College's LucEnt Programme Ifor enterprise initiatives}. Unrestricted gifts are particularly appreciated and a allocated to areas of greatest need or to the endowment, the income from which support5 all College aitivilie5. This yeaT Humphrey Battcock and Colm Kelleher made significant unreslricted gifts. As ever. the grant from the Colleges. Fund of £1.203m was very much welcomed also. We are extremely 8Tateful to all our benefactors, includin8 those who chose to make anonymous donations. Other inci)me - £165k1343kl 52% decrease This heading coveTS receipts fiom photocopying, merchandise and fees from Visiting Fellows. As In 2019120 and 2020121 it also includes amounts claimed under the Coronavirus Job Retention Scheme totalling120121 £246k and19120 £155kl 10 SUPPOrt those staff who were placed ol) fuilough during the year as a result of the reduction in the College's operation5 due to COVID-19. Expenditure Expenditure has increased by 38% overall1201211% increase). For the Financiol Yeor Ending 30th June 2022 16
Lucy Cavendish ColIege UnTrJwsily ol Cambrxjge eNI)ers ot Govemw eody during the to Junè 2022 Education expendtture - £3.940m1£2.801ml 41% inCaSe There has been an overall increase in education costs with greater expenditure p3rtÈcvlarly in the areas of teaching, tutorial, admissions, scholarships and awards (including the College's share of the Cambridge Bursary scheme} and educaf ional facilities as the numbers of students in the College significantly increased compared to the previous year. In common wilh all Cambridge colleges there ts a shortfall on the core education accounts Ifee income ser against educational expenditurel of £645k compared with E490k in 2020121 Residences, catering & conference costs- £4.291rn (£3.155ml 36% increase There have been increases in all expenditure under this heading. The college continue5 to rent room5 from St John's Colle8e at Mount Pleasant Halls. from Westminster College 3nd from Collegiate at Castle Street. In most instBn¢es the rental agreements are for 52 weeks meaning that the College has to pay rent for the full year even when the students, licences awe for shorter periods or when the roorns are not let. Alihough the College's combined 'Residences, Catering and Conferences. income has increased as previously detailed1£3.19m compared with £1.667m Èn 2020121) this has not cOVed the full costs of PToviding accommodation and catering. These expenditure figures represent a full cost allocation including all overheads. The overall defitit for the yèar or) Residences. Catering and ConfeTences was £l.Im and although this represents an improvement on the overall deficit of £1.49m in 20121 this last was worse because of the Impaci of Covid. particularly ihe associaTed refunds arnl reductions offered to studenls. Ongoing efficiencies and increased rent charges, progressNely bringing these closer to actual costs, are a key part of seeking to ensure the College's financial sustainability in the medium term. Funds collected contribute to the economic cost of meals within College and sUPPOrt further investment in the colle8e kitchens. Usually. the College seeks to balance the need tD offer affordable rents and charges for studenls whilst at the same time ensuring that the ColleEe has the necessary funds to mainiain its student accommodation and catering facilities, undertaking necessary refurbishment and maintenance. This balance is likely to become even more difficult in 22123 as Cost of living pressures affe¢t student$ and the ColleEe itself is subject to increased costs through high infiation. Balance Sheet The Balance Sheet shows a Nel CurTenr Asset position at the year*nd of £1.744m120121 E427kl. Non-current assets Non-current assets total £62.468m120/21 £54.18m2. These include Tangible Assets of £44.79m120121 £36.53m} including properties, furnishings. l.T. and other equipment. Investments of £17.68m120121 £17.656ml make up the balance of the non-current assets. This year the total capital investment in new Tangible Assets was £8.93m120121 £1.98m} whilst after disposals and depTeciation there was an oveTall increase of £8.258m120121 £138kl. The increase primarTrly relate5 to the consolidated cost of freehold buildings and asseis in construction {£8.751ml associaied with the Colle8e's expendifure on its onsite development1£1.9ml, Despite additions of around £1.2m{20121£1.Iml and an increase in cash held by the investment managers of around £lm120121 decrease of £146kl, the value of investment assets at £17.681m has remained very similar to last ye3r120121 £17.656ml, primarily through a£2.219m loss on revaluation 12012183in of £2.386ml. At 30 June 2022, the College had drawn down a total of £10.396m frorn a £16m loan facility provided by the University of Cambridge io fund the new buildin8 on the College's main site. For the Finonciol Yeor Ending 30th June 2022 17
Lucy Cwenrftsh College Unrer[Y ofc3rnbf9è M8mb8rs ol Ihe Governing BO&y ¢uring the yeor to 30 JunE 2022 Resetves The consolidated reseNe$ Stand at £46.782m up from £46.052m in the 2020121 accounts_ All income and expendilure, however derived. goes through the Statement of Comprehenswe Income and Expenditure so the total movement on reserve5 is equivalent to the comprehensive income lor expenditure) in the year. Thus, the consolidated comprehensive income of £732k120121 comprehensrve income of £1.715ml is also the decreaselincrease in Co[]1dated net assets and in consolidated reseTYes. Of the total resetves at 30 June 2022 65% is held in unrestricted funds, 8% in resiricied lonfy to be used for specrfic purposes according to dorbOfS' wishes) and 27% in endowed funds Icapital to be retained and tncome only to be spent). This compares with 64%. 3% and 33% in the comparative figures at 30 June 2021. During 2021122 con501idated unresiricted funds increased from £29.285m to £30.188m (College unrestricted funds increased from £29.343m to£30.414ml whilst total endowment funds fell from £15.319m to£13.02m. Restricted reseNes increased from £1.448m toE3.574m. Reserves policy A high level of capital is required foT the College to fulfil its role within the University and thrwe over the long term. Capit81 is needed to build and replace operational buildings and to provide income to meet operation31 expenses. of which the largest ssngle element is salaries for academic and non-academic staff. It is worth noting that the totsl value of Tan8ible Assets at £44.788m exceeds the value of the consolidared uftrestrlcted funds at £30.188m so there are esseftti311y no quickly available 'free reseryes, All Cambridge Colleges take an intergenerational equity view of their reserves ant1 Lucy Cavendish, too, seeks to maintain an equttable balance between the needs of its present members and those of future generations and musi therefore seek to maintain its endowment reseNes over the longer temi. The College relies on the total return from its investment5 both to fvnd the difference between its annual expenditure and operatlng income and to maintain rhe real value of its a55ets and future income. The College seeks to maintsin it5 reserves at a level that generates a total return sufficient to meet these objectives over the long term. The Reserves Poli does not preclude the Governing Body authorising a reduction in the reseNes if it wishes to implement specifIc initiatives that are likely to accelerate the fulfilment of the College's Strate8ic objertives. In oaober 2020, as a further prudeni measure, the Governing Body approved an addition to the Reserves Policy lo establish an equivalent of a 'desi8nated selve. designed to ensu that the Private Placement borrowings can, If the Trustees at the time consider it the right thing to do. be repaid in full when they fall due In 2043144 and 2053154. (Previously. the assurnption had been that they would have to be re-financed.I Every flve years a review is to be carried out of the monies put aside for investment in the designated reseNe and the allocations increased for the neKt quinquennial period as needed and depending on the proximity of the repayment date. Cashflow Operating cash levels are generally held at low levels and historic311y cashflow has required very carefvl management. Cashflow has Steadily improved over recent years with increased income and tighter credit control and that is predicted to continue as an outcome in the financial modelling. In this year, net cashflow was supported E>y the operational use of the Colleges, Fund l£1.203ml and also by drawing down on the Loaft Facility from the University for the Phase I building1£8.396m drawn down in the yearl. Net cash inflow from operating activities in 2021122 was positive at £3_664m12020121£1.69ml. However. this sum includes the very stgnificant donation of £2.6m which is intended to support expenditure over the next ten years. For the Finoncial Yeor Ending 30th June 2022 18
Lucy Cavendish Coltege ihivergiy d C3re Nwr&)ers of Eh& Goveming Boty during the ywr to JunÈ2022 Cash totalling £1_624m120121 £1_169ml was also used In capttal expenL8rture. purchase of investments and to pay interest on loans bul the overall position was an inflow of £2.04m12020121519kl, Staff costs and pensions The College makes pension fund contTFbutions on behalf of it5 employees to Univer51ties Superannuation kheme IUS51, with some contributions toward5 the defined benefit part of the scheme and some towards the defined conlribution PaTt of the scheme. and to a defjned contribution scheme with NOW pensions. The Colle8e previously contributed to another defined benefit scheme, the Cambridge Colie8es Federated Pension Scheme but it no Songer has any active members in this scheme. However, rhe College contlnues io make payments lo this scheme in order to contribute to the deficit which it has accrued. Total staff co$15 increased significantly during the year with £3.582m in 21122 compared with £2.553m in 20121. A major element Df thls relates to the increase in USS pension provision following the last actuarial valuation at March 2020 which was concluded too late to be included in in the 20121 accounts. Total pension Costs in 21122 were £880k compared wlth £370k In 20121. Total average staff (academic and non-academlcl numbers rose from 83 to96 IwfE 50.94 to 64.101, reflecting some investment in new posts as ihe student numbers increased and return to more usual catering activities during the year with fewer Covid restrictions. There was a general pay increase of 2% for most employees120121 pay freezel. These figures also include the costs of teaching provided by those not directly employed by the College and these costs rose from £112k to £166k as was expected wrth the increase in student numbers. Employees No trustees are paid for being a trustee but in order to fulfil its charitable purposes, the College employs some Fellows as College Lecturers. SupeNisors, Directors of Siudies, Turors and senior AdmlnistratNe Officers lall of whom. alon8 with the President are charit¥ trustees a5 members of the Governing Bodyl.The employment of the President and Fellows is undertaken with the intention of furthering the COlge,$ object(ves and their employment directly contributes to the fulfilmenl of those aims. The private benefit accruing to the President and Fellows through salaries, stipends and emplo¥ment-related benefits is objectivety reasonable, measured against academic Slipends generally. and indeed is generalty modest when compared with those of other colle8es in C3mbrid6e. Without the employment of Fellow5, the Colle8e could not fulfil its charitabte aims as a College within the University of C3mbridge In addition to the President, the toial number of Fellows ift the year was 48120121501. The College also employs a further 66120121591 members of staff and engages other casual staff a5 necessary to provide the professional and seNice support necessary to run the College. Salartes and remuneration are reviewed annually by the Salaries & Remuneration Commitiee. the majority of whose members a Fellows in the College who do not recelve a stipend tO6ether with external rnembers who are completely independent of the College. Maintenartce of bulldln85 and capltsl expenditure Total capital expenditure during the year was £8.93m (20121 El.979m). £8.751m120121 £1.889ml of thls related to the con501idated c05t of freehold buildings and assets in construction associated with the Colle8e'5 expenditure on its onsite development. Other expenditure included general refurbishment in accordance wilh a programme of planned maintenance. improvements to our Library to create new study and teaching spaces. the purchase of Library books. planned upgrades for IT systems. equipment and iftfrastructure and a new fire suppression system for our kitchen. For the Finonciol Yeor Ending 3 June 2022 19
LY Cavendish ColIe9e ihweryry of cambre IAeml)•rs ofthe Governing P4xly durirKJ the year to 30 June 2022 Rlsk manaeement The Governing Body Is responsible for identifying and managing the major Tisks facing the College. Risk management is considered in every aspect of the College's work and the College recognizes that the effective management of risk. while ensuring our organisarional objeaNes are achieved, is key. The College Counol, Governing Body and Audit Committee consider the regularly up-dated risk register. They review risk in it5 broadest sense and consider anything that mi8ht alter or undermine the capacity of the College io fulfil its objectives from both a strategic and operational perspective. Our wider assurance framework includes policies and procedures for anti-corruplion and bribery. health and safety, and management of complaint5 and grievance5. These ensLEre that, where inci(lents give rise to risks. tFtey are identifted. acted on swiftly and reported according to our gUlatOry reswnsibilities. The key pririciples tu support the delivery of our risk management approach are outlined below.. • Ft is the responsibility of all staff to ensure they understand and comply with policie5 and their risk management roies and responsibilities. Risk management awareness and training will be provided to all staff as appropriate to their roles and re5ponsibililies. Risk managemeni is not a stand-alone activity that is separate from the College'5 main activities. It is embedded in key processes and at decision-makin8 point5 le.E. Strategic and operational planning). • The College has a register of str3te8ic risks that dewibes and categori5e5 risks according to their likelihood and impact. The Audtt Committee has dele83ted authority to act on behalf of the GoverninB Body in relation to the matters Set out in its terms of reference. as well as providin8 advice. guidance and insighi on issues within its scope. rhe Committee is chaired by a Fellow and has extemal members to provide relevant expertise. The Commiltee has a specific duty to keep under review the effectiveness of the College's risk management, control and governance arran8ements. Principal risks and uncertainties During the last financial year. the world began to emerge from the most onerous restrictions of the Covid pandemic such that nearly all students were able to be physically in Cambridge and the College wa5 able to return to more normal prowsion in most areas of its work. Covid-related controls still remain in some places in the world and a5 we move into ihe autumn months there is some uncertainty about wheiher a further wave of infection might occur, but the existence of vaccines and boosters. together with the experience5 gained of how to manage activities appropriately to minimize the spread of infection mean that the College is in a reasonable place to cope with any recurrence. Whilst the main areas of the College's ¥vork, namely leachin8, learning and research have been more or less back to rM)rmal, it is still a little more uncertain whether our pVIouS confeience trade will bounce back completeW- we rely on this to fill our accommodation and use our seYvÈces when most of the students are not present. We are not yei back lo trading levels pre-pandemic, bul there have been positive signs over this summer with some summer schools and otheT events taking place and a clear irndTrcalion that the virtual world has ftot completely iaken over f rom people wanting to gather together. However, beyond the pandemiG the world 15 currently facing considerable uncertaintie5 and challengès: firstly, the impact of the Russian invasion and subsequent war in Ukraine,. a1 secondly, the climate emergency whlch is now more regularly leading tc drought and floods. There was already economic fall-our from the pandemic but both of these have also significantly affected the economy and indlviduals leading to riging energy Costs, goods shortages, trade balerS and changes to labour patterns with increased wage demands. In the UK in Jul¥ 2022 inflation ICPI} wa5 at a 40 year high of 10.1% and is predicted to rise further For the Finonciol Yeor Ending June 2022 20
Lucy Cè¥tndish College UnKveryiy ol cambrge •Aembers of the Goverrun9 8(N* duri the yeLX to 3 Junp 2022 Into next year, wirh some commentators SUEgesting that il might exceed 20%. It is clear that cost of living considerations for the College, it5 staff and 5tudent5 are likely to be forem05t in the next year. As before, the main overall risk remains the College's relative under-endowment.. inevitably a smaller pool of investments. no matter how well empbyed. yields a smaller overall return. This has an impact In many ways. The return on endowmeni/investments is critical to all Cambridge colleges in allowing them to 5UPPOrt the wider operations and activities of the College and. in particular. to bridge the gap between fee income receivÈd and the full costs of education. Critically. for this College a larger endowment with gater return would provide regular ongoing funds to offer greater support to our students in meeting living c05t5- in practice, many other colleges are ab to sub5idise these to an extent that we simply ¢annot afford to do. It wouhl also enable us to undertake more investments ift infrastructure and develop new seNices to keep the College moving forward in the much longer term. Importantly. in the current unceriair) politiial and economic circumstances, a larger endowment would also offer greater S1]IenCe against the impact of fluctuaiions in ihe internation31, national and local landscape in which we operate. Beyond the uncertainties affecting the whole world. there remain uncertaintie5 about the Higher Education fees and funding regime in the UK and elsewhere which could affect the numbers and types of students who come to tt)e University of Cambridge and therefore to this College. At a more kjcal level, whilst the College is responsible for admiltinB its undergraduates, the University admits the postgraduate students and ensuriftg that colleges. and University plans align can be challenging. In recent years. the balance of students in the College has shifted $0 that in June 2022 we had about 39% undergraduates and 61% postgraduates ljune 202138% and 62PAI. An ongoing focus on cost control and a commitment to efh'cient management of resources and value for money also remains important. However, these alone will not address ihe College's sustainability. In order to provide the appropriate suppc>rt facilitie5 for our current students and to saleguard the College's future we must also continue to undertake planned growth and invest in capital, including new technologie5 to achieve better productivity. Income generation is as crtticBI as c05t control. Hence growth in student numbers, continuing to charge appropriate economic rates for accommo(Jation and other services, rebuildlng our conference and oiher income-generating activities as soon as possible, ambitious ftjndraising to augment the endowmenl and to allow the College to offer increased sUPPOrt for OUT Students ènd 50uRd investment management all have a crucial role to play in securing the College's future. In terms of expendrture. there MaInS considerable upward pressure as student expectations rise, requiring the ColleÉe to deltver even more effectNely in all èreès- from teaching and pastoral support to accommodation. housekeepin& catering and IT provision. Legal and compliance issues increasingly require the College to devote more of Èts resources to ensuring that requirements are mel. Equally, Ihere is continuing pressure in several areas for the College to pay ils fair share of inter-college and collegiate University costs with previous subsidies for less well-endowed colleges being tapered and gradually removed. Finally, in order to continue to meet our aspiration of ensuring that talented students from non. tTaditional backgrounds can come to the College and complete their studie5 at Cambridge irrespective of means, there remains a great tieed for student bursaries and hardship funds. As our student body changes wilh a targer number coming from groups that have been traditionally under-represented ift Cambridge. we can see that ihere is increased pre55ure to ofter more support even beyond the Cambridge 8ur5ary scheme. In the meantime, the support that we have receNed from donors for student bursaries has been particularlv valuable this year and we. and our students. are grateful for such 8enerosity. For the Financial Year Ending 30th June 2022 21
Lw Cavendish College Univeisily of Cambri¢Jge Membeis ot the Gov8rning lY(ing yety to 30MhJune 2022 plars for the IUre In conclusion, in Émplementing its new vision, the College continues to aim to secuTe its financial future through growth in siudent numbers, Significant development of the Collegè's estate, an increased unrestricted endowment, and a pemianently funded core of positions and progrèmmes th3t will enable us to deliver the vision to the benefit of our students and Fellows in a compelling manner for decades to come. As will be evident from this report, the College is actively implementing plans in all of these areas and these wÈll continue to be the prtorities over the nexl year whilst also ensuring that the operalional and financial Impacts of world events contintje to be managed well. We are dejhted and heartened to have received such positive and significant support for these ambitrous plan5 from so many different people and organisalions once 3gain ihroughout th¢s pasi year. Togelher we are confident that we can achieve the ambitious goals we have set. The College takes this opportunlty to thank its Auditors and other professional advisers for their consistent and Èxpert support. PTO President Dale.. I" December2022 Dame Madeleine Atkins Mrs Lesley Thompson BurSaT Date: I" December 2022 For Ihe Finonciol Year Ending 301h June 2022 22
Lucy Cavendish College Uni%eiyiy of cèrrdYge Corpoioi• Goveinunce Corporate Govemance The lolfowrng staternent IS PTovided by the Trustees to enoble reoder5 01 the financial stotements to obzoin a belter understanding of the arrangemenis In rhe College lor rhe monogement of its r8sourc&s and for oudit. The College is o re9tstered chayiry. TegTrsEiation number 1137875, and subje¢r to regukition by thé Chorily Commission for Englond and Wales. The members ol the Governing B¢)dy are the chority trustees and are responsible tor ensurin9 complionce with charity law. The Pre5idenE and Fellows in Classes A. B ond C constitute the Goverrung Body of the College. The Govemin9 Èocly is constituted ond re9ulote(l in occordonce with the College stotutas and is the body responsible lor the stroteg£c direcrion ol the CoHege. Members of the Governing Body or8 01$0 the Trustees of the charity ond ore listed on puge 2. Student Tepresentotives ond Visiting Fellows are invited to Goveming 8cxJy meetings Ic¥ unreserved bvsiness and Fellows in Ck]ss D (reseorch fellows} attend the unreserved and resèrved meetings L)s observèrs. There is usually one formal Governing BoLly meeting and one iTrforrwl meertng per term, together th the Audit meeting during rhe Mlchaelmas term at which the uudtted oceounts ute approve(L 4. Ongoing odministration ond mano9emenE ol the finonces and assèts ol the College Is carried out by the College Council whicki is composed ex oflicio of the senior officeTS {see bejow) together wilh six elected GB members, student representatives and one stall Fepiesentative. Council meets three times durin9 term time and iusr before and after temi as neeèssury. Membership ofthe Council during the Financial Year 2021-2Z' Professor Dome Modeleine Atkins. Presid&nL ex officio Professor Hèr¥iètte HeTKlriks. Vice-PresidenL èx officio rs Lesley Thompsory Bursar, ex oflicio Dr Jane Greororex, Senior Tuior. ex ollicK) IAS Alison Vinnicombe, Secretary to the Council, ex olliio Mrs Christine HotJ9hton Dr Mark King Dr Eileen Nugent Dr Alex Freer MS Suzanne Tonkln Dr Potricia Alireza 5. There ore o smoll number of corymtttees and working groups which Tepon to Governing Body ondlor Courtil, including on Audit Committee. It 15 the duty ot the Audil Committee to keep under review the eltectiveness ot the College's internal systems ol linanctol ond other controls-, to advisè the Trusteès on the op¥>ointment ol external and internol oudiior8,' to consideT reports submitted by the ouditois, both exteTnol and inrernol, to monitor the implementaon ot recommendatsons mode tsy the auditors." to make on onnual report to the Trustees. For the Financiol Yeor Ending 301h June 2022 23
Lucy Cavendish College Univer%iy ol CambrQge Corpofoie Oovernonce 7. The principgl otticers of the college ore." presldent Vice President Senior Tutor Bursar Prolessor Dame Madekine Alkins Professor Henriette Hernytiks Dr Jane GreotoreL Senior Tutor rs Lesley Thompson MA FCA Oelegoted authoriry is givèn to them during the Long VacrJtiork 8. There ore Re9iSters ot Interests of Trustees the Council and Audit Commtttee ond of the senKJr odrninistrative off ic9rs. Dèclorations of Interest ore mode systematicolly at meetings. g. Tlie College's Tru¥tees during tli8 yeor erKled 30 Junp 2022 are set out on poye 2 10. statement ol Internol ContrDI The Trustees are responsibl& for maintoining o sound system of intemol control that supports the ochievement ot policy, oims and obi'ectives vANle saleguording the public ond othér funds ond assets for wnich tlie Governing Body is responsible. in occordonce wtth College Statutes. The system ol internal control is designed ro marloge rother thon eliminate ihe risk ol failure to achieve poIleS aims ond objectives: it therefore provides ietssornbk but not absolute assurance of effectiveness. The sysr8ms of intèrnal control Ore designed to idetTtty the prsTrcipal risks to the achievement ol policiei 0irn5 and objectives, to Èvoluote the rtUre ond extent ol those risks and to monoge them efltciently. etfectwely ond economicolly. The TTUStees ¢Jre responsible for reviewin9 the effectiveness of the system of internal control. The Trustees, reVW of the effectiveness of the systern ol internol control is Informed by the work of the various comrnittees, the BursaT and othei College oflicers who have rèsponsibility IOT the development arKS maintenance ol the internol control Irarnework, ond by comments mode by the externol eudirors in their MonageFTnt letter arKI other report& Any system of linonclal c(K)trol nowever. con onty piowde reosonoble, not obsolute, ossuronce against moterial misstatement or loss. 11. Finonciul management oncl conirol The College operotes o devolved budgeting sysiem under which iridivKlual budget holders ore rèsponsible for managing income orbd exFEnditure within thèir own ore05 Ot operation and for bringing forward budget proposa15 through on onnual budgeiing process. Fellows. members ol stoll and students ore encouroged to porticipote in the pleSS through membeiship of relevant committèes ond workiThJ groups. The Budget is then consEdered by Council prior to approvol by rhè Governing Body. Foi the Finonciol Year ErKling June 2022 24
Lucy Cavendish College Unwer5ity of Cambridoe Re$w)nglilS of thè Trustees Responsibilities of the Trustees The Trustees ore responsib lor preporing the ATrTruol Report ond ffnoncial statements in uccordorce with applicoble low ond Lsnited Kin9dom Accounting Stondords (Untted Kingdom Gonerolw Accepted Accounts"ng Practice). The College's Stotutes ond the Stotutes ond Ordinances ot the Unwerslty ol Combrldge require the Governing Body to PreF[e limncial statements for eoch fi"nanciol year which give a true and loir view of tme state ol altairs ol the College and ol the surplus or deftcit ol the Coljege for that period. In preparing these linonclol stotemenis the Trustees are iequiied 10-. select suitoble occounting policies and then oppty them consistent moke judgments and esrimores trt ore reason0b and prudent: state whether applscatslr* accounting stondards havp been followeLi subject to any mott)TioI deF)aTtures disclosed ond ewlained in the tinoncial statements.. and prepare the linancial srorements on the going concem busis unless ft is inappropriare to Presume that the College will continue in operatK)rL The Trustees are respons1t) for keeping occounting records which aisclose wrtrs feasonoble occurocy ot any lime the financial position of the College and enable them to ensure that the limncial Statements Comply with the Statutes of the UnNeTsity of Cambridge. They are also Fesponsible for soleguarding the 08setg of the College ond hence loi toking reosonoble steps IOT prevention ond deiectbn of Iroud and other irreguIarities. The Trustees ore Tesponsible for tile mointenonce ond integrtty ot the COTwroie orKI finonciol Information included on the College's website. LegislotDn in the Llnited Kingdom governing the preporation and di$semin¢tion ol financiol stotement$ mtsy dilfer Fr(Th legi$luts"on in olher jurisdictsons. For the Financial Yg01 Eridiry 301h June 2022 25
Lucy Caventhsh College
UrNver%iy of Carrt)ri
Lucy ()Yendish College Unwersffy of Cambri(kJe stotement gf Piinc4uoI Accounlsng Policies such maierial inconsistencies or apparent moteriol missiotements. we ore required zo determine whether this gives rise to o material misstatèment in the financial stotements themselves. rf, tjased oft the work we have Perfed, we conclude thot there is o moters01 missiotement ol thrs other informotion, we are required EO report tliat fact. Wè hove nothing to rèport in this regord. IAatters on whÈeh weare requTredto report byex¢eptt4 We have nothing to report in respect ol the following rnatters in relotion to which the cfKJrltles (Account5 ond Reports) Regulations 2008 require us to report to you rf. in our opinion= the inlormotion given in the linonciol statements is inconsistent in any matenal respect with the report of Ihe Gc>vernin9 Boay.. or sullieiÈni accountin9 records hove not be&n kepL or the linunciol statements Ore not in ogreernent wtth the accounting records or)d réturns,- or we have not re¢eNed oll the inlorm0i and explonoD"ons we requiie for our oudtL Responsibiljli0ftrusts As explainecl more lulty in the trustees. responsIbilities stotenient set out on poge 25, the iiUSEees 019 r@sponsiblg lor the pr&poraiion ol the lina101 statemerbls and for being sotisfied that they give o tiue and lair VEW, ond tor such internal control as the trustees dèterminè TS necessory to Ènable the preporotion ol financial statements that are free from material misstotemenL whether due to fraud or error. In preporing linonciol statements, the tiustees Ore iesponsible for assessing the gioup s and College's ability to continue 05 a going concern, disclosing as applicable, matteFS rekjted to going concern ond using the going concern basis of accouniing unless the trustees either interKI to liquidate the group or lh& College or to ceose operations. or hove no rèalistic otternotive but tc do so. AudhoY$ rgspon$lbllltlosfortheaudSt ofthefinuneial stalements Wè havè b8en oppointed os auditor under section ISI of the Charities Act 2011 and ieport in occordonce with regulaty'ons made under section 154 01 ihot Act Our objecD'ves ore to obiain reasonoble assuFonce about wt*thef the fimncial statements os a whole are Ire@ Irom material misstatemÈnL whether due to Ifoud oreiror. ond to TSSUè an auditorfs repoit that includes our opinion. Reasonable assurance 1$ a high level ol ussuronce but is not a gvarontee Ihot an auclit ¢onducted in accordance with ISAS (UK) will always deieci o material missiaiement when it exists. klisstotements ccn arise from fraud or e¥ioi orKJ afe considered moteriol il, individually or in the oggregote, they could reas0rL)lY be expecfed to iF)Iluence the economic decisions of users token on the basis ol these tinancl statemenrs. IrTegulorrtiès, ineluding Iroud, OTÈ instontes ol non-compliance with lows ond regulotions. We design procedures in line wtth our responsibilities. ouuined (zbove. to detect moterial missrotemenis in Tesp&ci ol irregulorities, including fraud. The exteni to which our procedures ore Capab of detecting irregularities, including Irtsud is detailed below= we goined an unclerstarKling ol the legal and reguloiory frornework applicobl& to the College ond liow it operotes and considered the risk ot the College wt comptying with the opplicoble lovls ond Tegulations including Iiaud in porticular those thoi could have a material impact on the finoncl statements. This included Ihose regulations directty reloied to the finonciol stotemenis. In fe5ation to the College this included dtsta protection. heolth ond sofety, employment law ond fiTr0ncl reporting. The risks were dlseussed with the ovdit teom ar)d we remoined olert to any in(Ji¢ations of non-compllance throughout the oudiL we carried out specific proceduTes to address the iisks idenrilied. For the Financial YeoT Ending 30- June 2022 27
Lucycavtndish College Unrorsiry of Cambnd9e Stotemènr ot pfir1pal Accounting Pdides These included ihe followrig.. We ieviewed systems and procedur8S to identify potentsal oreog of management QVeTride risk. In parttcular. we carried out f8Sting ol journal entries ond other odjustments loi opproprioteness. We reviewed sy5tpms and procedures to identity poreTrtKJl oreos ot mono9ement overrtdp risk. we also ossessg¢ marK]goment bios in relation to the (Kcounting policies odopted and in determining signifioont accountyng esiim(rtes We reviewed mlnutes of governing t)ody meetings and aea thè financial stotement disclosureg to underlying supporttng documentotiorL Vve have made erwuirigs of rTnagement and officers of College regording laws and rgguIoiions applicab lo or9anisation. We reviewed the iisk monogement processe$ ond procedures in pl(J¢e includiry o review of the risk rggisrer ond rep)rting to the trustees. Because ol Ihe inmerent limitoilons of an oudiL there is o risk that we will not detect oll irreguk]ritie including those knding to a moterial misstotement in the finontnl statements or rn-cOMplnce with regulotion. This risk increoses the more tnot compliance with a low or regubfk)n is removed from the events and transociions reflected in the financial stotemeni& os we will bo less likely to become aware of instances ol non-complian¢e. Tf¥e risk is also greoier regarding irregulartties occurring due to troud rother Ihan eiror. as fravd involves intentionol conceolment. forgery. collusion. omission or misrepresentatN)n. -i.ab'.e op. fincyciol Reporting CoLrncil's websire ot A lurthe.. description ol o'Jr yesr.S.'1IeS is l h¢pS'.I www.frc.or uk Our-work AuditJAydrt-ond-assuronce Standords-and- ndords-and- once-foi-a ion- u&Losw. This description forms port ol our audiiorfs report. -re U$eotourreport This report is made sotely IO ihe College's trustees. as o body. in accordance College's stoiuies. the stotutÈs of the University ol Combridge and part 4 of the Chorities (Accounts ond Reports) Regul(rtions 2008. Our aud work hos been undertoken so that we might state to Ihe Collegè's trusteès those matters we arg required to state to them in an ouditoff5 report an¢Y tor no other purpose. To tme fullest exteni permitted by Iow, we do not accept 01 ossume responsibility to anyone otheT t1 the College and the College"s trustees os a body, lor our oudit worK lor this reporl oi for the opinions we hove tormed. nc Prlc• Ball ey LLP charteied Aeeountants and StatUtoryAudit Tennyson House Combridgè 8usiness Park Combridge CB4 OWZ Dote.. 21 December 2022 For the Finonciol YeoT Ending June 2022 28
LucyCavend15h College Univeryiy of C>ntvidge Statément ol Principd Accounting PDIici85 Statement of Principal Accounting Policies Bosis ot preparation The linoncial statements hove been prepared in occordonce with the provisions of the Statutes of the College ond ot Ihe UnNersity of Combrid9e, using the Rg¢ommended Cambridge College Accounts IRCCA) formot,. and applicable United Kingdom Accounting Stondards including Financial Reporting Stondord102 (Ffls 102) and the Statement of Recommended Practice {SORP).' Accounting lor Further ond Higher Educolion issued in 2019. The Stotement of Ctsmprehensn Income and Expendrture inclucles activiry anatysis in order to dernonstrate that all lee income is spent for edvcatÉonol rPe$. The OrlY$1$ required by Ihe SORP is sei out in note 6. The Colle9e is a pJblic beneftt encity and therefore tS opplied the relevont public benefit requirement of the opplicable UK lows ond occounting storKlords. The functioftal and presentotionol cU[re¥ of the College is GBP The level of r¢ndIng applied is to the nearest £000. 8a$i$ of a¢¢ounting The finoncial statements have been ppOre undei the histor01 cost convention. os modified by the revoluation ol investment assets ond certoin lond ar buildings. Basis of consolidation Thè COnslde[ed linoneiul Stoternènt$ include thè finoncioi statements of The college and tts subsidiory undertakTngs lor the yeor ended 301h June 2022. Details of the subsi(Jioiy undertakirKJs included are set out in note 24. Intro-group bolonces ore eliminoted on ¢S01d0t* The octTrvtties of stuojenl societies hove not been consolidoted. Recognition of income Aeudemlc fees Coiiège leè incomè is recognisèd in the pèrtod for which it is reeeiveo ond includès all lees ¢Irgeable to students or their sponsors. tsrunt ineomt Gronts recetved from non-government sources (including reserjfch grants from non-governmeni sources are recognised within the Consolicsated siatement of Comprehensive Income and Expenditure the College is èntifièd to thè ineome and perlormanee rèlated condirions h(T4e been met Income received in advore ol perfomiance related COnd0Th$ is deferred on the balance sheet and releosed to the Consolidoted Statèmènt ol Comprehenswe Income and Expenditure in line with SLtch conditioris being met. Amounts recewable, in ihe yeor, tsom ihe governmenys corono virus job retention scheme was £40,366. For the Financiol Ygor Ending 3011 June 2022 29
Lucy Cèvendi5h College Unwefyiy OfCamK)e Statennt of Principjl Accounkn"ry Policies Donations and endowments Non exchange transoclions without perforrnonce reioted conditions ore donotions and endowrnents. Donotions und endowments with donoi imposed restiictions are recognised within th& Consolidoted statement ol Comprehensive Income and Expendirure when the College Is enttfied to th& income. Income is ret0[ed within restricted reserves until such time thot it is ulilised in line with 5u¢h festrictions at which point the income is Teleas8d lo general reserves ihTough o reSee tronslèr. Donotiong ond endowments with restr[lon$ are clossified os restrtcted reserve5 With odditionul disclosure provid8d within the rK)tes EO the accounts_ rhere are four moin types ol donanons and endowments with reStltIOns. Restrictèd donotions - the donor hus specified that the donor50n rnust be used lor a PUTIiGukJi objective. Unrgstricted permanenE endowmenis- the donor hos specthed that the turJcI is to be permonenity investéd to generate on income streom lor the geneToI ben&fii of thè College. Restri¢ted expendoble endowments - the dOrr has specified o porticulor objectivè and the College Con convert the donfjted sum Into >neome. 4. Restricted Permonent enclowments - the donor hos specified that the lund is to be permanently invested to generate an incorne streom to be OPled to o p]rt[r objective. Donortons with no restrictions are recorded within the Con501idaied Staterlt ol Comprehenstve Income and Expenditure when the College is entived 10 the income. Investrnent Income and change in value of investment os$ets Investment income and change in volue of investment ossets is recorded in income in tThe yeor in which It ijrises und os eicher restricted or unrestricted income accoiding to the terms OT OZheT iestrictions applied to the individual endowm&ni fund. Total return The Governing 8ody ogre8d thal the transfeT made under Total Return woukl equate to 3 per cent This is in Ilne wirh The College spending rijlp which permits thè transfer of no rrre thon 5 per cent ot the closing balonce ot tlie fund Eoch transfer is subject to the specific agreemeni of the Goveming Body. other Income Income 15 received Iiom o ronge of activities inclucling 4JccommodoiioTh cotering conferences, furlough and other services reTyYered. For the Financial Yeor Endin9 30" June 2022 30
L Y Ca¥endi5h College Unbjersiiy of Cambridge statent ol PrinoprA A¢countiNJ Ptslicies Cambridge Bursary Schome In 2021-22 payment of the Combridge Bsjrsors to eligible students wos mude direcrw by the Student Loans Compony ISLC). AS o consequence, Ihe College reimbursed the SLC for the lull amount paid to their eligible students arKI the College svbsequpntjy Teceivgd a contribution from Ihe Untversity of Cambridge towardg tPiis payment. The net payment of £82,832 (2021.. £55,767) is sh¢iwn within the Consolidoted Statement of Comprehensive Income and Expenditure as lolbws.. Incorne (see Note i) £383.473 {2021'. £289.517) Expenditure £466,305 (2021.. £345.2841 Going concern As part of its development plans, the College has undertaken additional budgetin& forecasting and cash flow planninB which is reviewed and monitored by the Finance and Investment Committee. Council ènd Goveming Body. The 30 year flnancial modelling undertaken In sUPPOrt of the College's exparision plans was stress tested based on a number of scenarios and scruiinised by the University in assessing its decision to offer a lo?ft facility of £16m to the College. In addition. the guarantee of an award next year ol at least 65% of the 2020121 College's Fund grant tO8ether with the agreement that it may once again be used for operational purposes gives confidence to Ihe Trustees that the College will have sufficient resources to meet its liabilities as they fall due for the foreseeable future. The College has therefore continued to adopt the going concern basis in preparing the financial statements. Tangible tixed assets o. Land and l)ulldlngs Fixed assets are stated at cost less occumulateil depreciots.on ond occumuloted imFxJi¥menr losses. Cgrroin iiems ol lixed assets that hjd been r•valued to fair volue on or Prior to the date of ironsition to SORP. are measured on the bosi5 of dèèm8d cosi being the revalued amount at the dote of that revaluation. Where part$ ol a fixed ass&t hove different useful livès. they ore acc<)unted for os separoie items of fixed QSS8tg. Costs incurred in relation to far ond buildings ofteT inib.al purchose or eonstrueti¢)n, and prior to valuatio ore capitalised to the extènt thai tY iftcreose the expected future benelrts to the College. Freehokl buildings are depreciaied on a comwnentisation bosis. Freehold nd is not deprecK3ted as it is considèrèd to have on indetinrte useful lite. BuikaiTrJs under construclson are volued at cosl ljose(l on the value of grchitecE5' certificates and other direct costs incurrèd to 20th June 2021 They ore not depfeciated until they ore brou9ht into use. The cost ol addit¥ons to operotK)rl property shown in the t)alance sheet includes the cost of lond where opplicable b. Maintenance ol premises The cost of relurbi5hment ts copitalised arxl depreciateo over thè expecièd useful economic lrfe of the osset concerned The Colle9e also sets aside sums perioclicallyto meet future maintenance costs. For the Finonciol Yeor Endin9 31Y' June 2022 31
Lucy Covendi5h ColFe9e Univergty ol CarY*JrKkJe otwn8ntol Principol A¢eountiftg Pol$ Refurbishments which provide significantly enhunced Iq]eil(cies ond benÈtits and cost gbove £IO.000 arp capitalised and depTecioted over 5 years I their useful economic life according ro Ihe asset clossilicotio L40intenance costs are expenserl through the income ond Èxpenditure occounl each yeor and the College 8ets oslde surns periodically to meet tthure maiDlenatKe cost Furniture. litting5 ond equlpment Furniture, fittings and eqvipment are copitulised und deprecioted over Iheir expected useful life as tollows.. Furniture and littTngs Inlormotion Technology Kitchen equipmenl Librury books General mechonicol equipment Air conditioning un(ts 5 years 3 yeors 3 years 40 yeors 3 yeurs IO yeors d. Leased assets Leases in which the College ossumes substanlially oll the risks ond rewgrds of ownership ol the leoged osset are classiffed os finance leases. Leosed assets acquired by woy ol kn"nance teoses ore stated ot orb arnount equol to rhe lower of ¢heir lair value and the present volue of the minimum lease poymènts ot inception ol the leose, less accumulated depreciation and less accumJloted irnpoirment k)sses. Lease payments are accounted for 05 described below. Minimum leose paym9nts are OPF)Ortioned between the linonce chorge and Ihe reduction ol the outstanding liability. The Iinance ctsJFge is ollocuted to eoch period during Ihe lease term so os to produce a constont periodic Tate ol interesr on the Temaining bolore of the liobility. Costs in respect of operating leoses are chorged on a stroight lie bosis over the lease term. Any leose premiums or incentives ore 8preod over the minimum lease term. Herttage Assets The College doe$ not currently hold ony hwrtage osseES. Investments Fixed asset investment ond endowrnent OS5et$ ore included in the bolance sheet al lair value except for investmènt in stjbsidiory undertokings which are stad in the Collège's bolonce sheet ot Cgst and eliminoted on con$olidoiion. Invèstments thot Ore not listed on o recognised stock èxchange are carried at histori¢ol cost less ony provision for impairmént which is considered to be the market value. Silver. works ol ori ond Olher assets not reloied to educolK)n ore volued at insuronce volue. Stock Stocks ore stated ot Che lower ol cost orKJ nei realisable Valve ofter makirg provi5ton for slow moving and obsolete items. For the Financiol Year Ending 30th Junè 2022 32
Lucy Ca¥endish Cdlege UnNeryTy ofC3mbndge Stotement ol pri1p01 Ac¢ounb'ng Polcies Provisions ProwsK)ns ore recognised when The College IS CT present legal or constructiv& obligation 05 a resu ot a past èvent, il is Probab thoi a tronsfer of economic ben8fii will be requlred to settle the oblvjorion and a rèliable 8stirnate can be T[de ot Ihe omounl of the obligatio Contingent liabllttles and assets A conringeni IKJbility artses from a post event thot grves the Collego o posgibk obligtition whosè ÈxistÈne• will only confirmed by the occurrence or otherwise of uncertoin future events, not wholty within the onrrol ol ihe College. Coniingent liobiliries olso oris& in cifcumstonc&s where a provision would Oiherwtse be rnadp but either it is not probable that on outflow of resources will be required or the omount ol the bligation cannot be meas4Jred reliably- A contingent osset arises where an event has token place that giv&s the College a possible asset whose existence will only be conftrmed by the occurrence or othenvise of uncertoin luture events rK)t wholty wtthTn the control ol tne College_ Contingent assets and liobilities ore not recognised in the bolonce sheet but ore dtsclosed in the notes. Currgnt Assets and Liabilities Debtor5: Shoit term debt¢)rs ore measured ot tronsaetion price. less impairment Cush ond cash EquivaIents: Cosh is repiesented by cash in hand and deposits with fTnonciol institutions repayoble without penolty on notice ol rKJt mure thon 24 hours Cush equivolents are highly Iquid investments Ihot mature in no more than three months fiom the oote of acquisition ond ihal oi& reodily convertible to known amounts ol cash with insisnilicont iisk ol change in vulue. Credltor$: Short term Creditors orè [raSUred at thè transaction pre Flnancial instruments The College has e¢ted to odopt Section$ 11 ond 12 01 FRS 102 in respect of the recognitiory measurement ond disclosure of fin0]0[ instruments. FinancKs1 assets and liobilittes ore recognt5ed when the Collègè becomes porty to the coniroctuol piovrsbn ot rhe instrument ond they are elassilied accoralng to the subst(JnGe ol the controctual aTrangements enteied into. A finan¢iol ossei ond a financlal liobility are offsei only when there is a iegolly enforcecJL>ie right io set off the rècognised umounts and an intention either to sellle on a net basi& or to reolise the asset ar settle the lbIlItY sirnultaneously. Financial assets Bosic financial osser$ include trade ond other receNobles. cosh and cosh equivolents and investments in eemrnercial poper (i.e. deposit5 Qnd bonds). These assels are initiolly recognised ot transoction price unless the arrangernent constitutes o linoncing transo¢t¢on, where ttie tronsociion is measured ot the present value ol the fuiure receipts discour)ted ar o morket rotè of inierg$1. Such 0ss8ts ore subsequenziy carrfed ot omtsrfised cost using the effective interest r(tte methcKI. Financial ossets are assessed for indicators ol For the FinoncKJl Yeor Ending 31y' June 2022 33
L(Y Caver$ College UnivergTy of Cambrid9È Stotement OtPrI1X)I Accountn9 Policies impL7ifment ot each reporting dutè. If there is objective evidenc& ol imFX)irmenL an impairment loss i8 iecognised in the stotemenT of comprehensrv& Income. For finar%ciol assets corried at omortised cost the impoiiment loss is tY)e Llitlerence between the Guriying omount ol the asset and the present voluè ol the estimated luture cosh flow4 discounted at the asseys originol 8lle¢tive inlerest role. other tinancial assets, including investments in equily insifuments, which grE not subsidiaries or joint ventures, ore inttialv measured ai laii value which is typically the transaction price. These assets ore subsequently carried ot fair volue and chonges in toir value ot the reF)Orting c10teare recognised in the Statemènt of Comprehensive Income. Please see note 9 where market volue ond c05t ore recorded. Where the Investment in equity instrumenis 15 not publicly troded ond vdhere the lair valuè cannot be reliably m8usured, the ossets are meosured ot cost lèss impuirment. Investryrnt$ in property OT Other Phys01 assets not constitute a financiol inSiTument arKI ore not included. Financial assets are de-rècogntsed when eontioetual rights to the Cosh flows from th8 ossei expire or ore settled or substantsally all ol the risks and rewords of ownership are transleired to another party. Flnanclal Liabilities B05ic finoncial liabilities include trade ond other pc>yables. bonk loans and inteFgroiJp loans. These liabilities are initially recognised ot tronsaction price unless the arrangerr*nt constitutes a financing transoctioo wherg the debt instrument 15 rneosured at the presènt volue of the future poyments discounted at a market Tate ol interesL Dèbl instruments are subsequently cariied at omortised Cost using the effective IntP$t rate rnethocf. Fees on thè Èstablishment ol loon focilities are recognised as tToosaction costs ol the loon to ihe extent thoz (t Is proboble that some or all ol ihe faeilty will be drawn down. Trode pcryobles are obligations to pay for goods or services thot hove been acquired in the 0rdirrY course ot business from suppl[9. Accounts FX)yoble ale cjossilied a5 CUTrenl lbilItieS rf poyméftt is due within ¢>ne year or less. If nol they are Present us non-current liabilitiès. Trode poyoblès a¥e recognised initially at titsnsactK)n price and subseq4Jently megsure<l ot omortFsed cost using the efteciive interest rate metttod. DerNattves. including forward loreign ex¢haThJe contracts, ore not bosic linoncial insrruments. DerivatiS are initially recognised at lair value on the dote the derivattve conirocr is eniered into and are subsequently re-meosured ot thsr lair value at the repelting dote. ChaThJes in the loir valup ol derivativès ore recognised in the Stoiem8nt of Comprehensive Income in linonce costs or linance Iorne 0$ oppropriate. unless thèy olè included in a trd91n9 orrongemeni To the extent irnt the College enteF5 into Iotynrd foreign exchange contracts which remain unsettted ai the reporting date the loir volue ol the contraets is reviewed at tliot doce The initial loir value is measured os the tronsoction price on the dote of inceptton of the contracts. SubsequeDI voluotions ore considered on th8 osls of the forward rates loi those unsettled contracts ot the ieporting dote_ The College does not opply ony hedge occounting in respect of forword toreign excnonge ¢oniiocts held to manage cash Ilow exposures ol lore¢ost tronsoctions denominoted in foretgn currencie& Financial liabtlities ore de-recognised when rhe liability is discharge¢ cancellea. or expires. For tme Financial Yeor Ending 20th June 2022 34
Lucy Cavendish College Univergiy of Cambrge stotement ol Prirt4gxd Accowtiry Policie$ Lego¢y a¢¢ounting pollcy For Iegacies. entrtlement is token as the earlier of the date ol whrch either. College is (7ware that Probato been granted, the estote IS been finalised a1 notrticotion IS been made by Ihe execulor(s} to the Trusi that a distribution wi51 be mode, or when a distribuiion is ieceived from ihe estate. Receipr ol o Iegacy, in whole or in part, is only consideied pioboble when the amount can be meosured reliably ond the Colleg hos been nottfied ol the execuior's intenrion ro muke o disrriburion. Where lego¢ies hove been notified to the Colloge. or the College is ()wore of thè gronting of probate, the criteria for income reco9nltion have not been met, then the le9OCy is treated as a contingent osset ond dtsclosed rf moteriol. Taxation The college Is o registered chority (number 11378751 ond olso a cl)ority wilhin the meoning ol Section 467 of the CorporatKJn Tox Act 2010. Accordingly, Ihe Coltege is exempt liom taxaiiorb in respect of income or eapitol gains received within the cutegories covered by SectioTrs 478 to 488 ot the Corporotion Tax Act 2010 or Section 256 of the Taxotion of Chorgec)ble Gains Act 1992 to the extent thal such income or galns ore applied to exclusivety charitable purposas. The COle receives no similar exemption in respeci of Value Added To Contribution under Statute G,11 The College is liable to be rjssessed for Contribution under the p¥ov¢sions of siatute G,11 of the university of Cambridgg. Contribution is used io lun(J gronts to cotleges from Colleges Fund. rhe College may Irorn time to time be el1b lor such gronts. The liabilty for the yeor 15 as odvised to the College by thè University bosed on an assessable amount derived from the volue ol the College's assets as 01 Ihe end Ot Ihe previous financial yeor. Employrnent benefits Shori term employmgnt banefits such 0$ solories ond ¢ompensot8d obsences ar8 re¢ognised as an èxpense in rhe yeor in whtch Ehe employees render sevvice to the College. Any unused benelits ore occiued and measured as the additional amovnt rhe College expects to poy os o result of the unused &ntltlemenL Reserves Reseives ore allocated between restricted and Unrestricted reseives. Endowment reserves include balances whicN in respect ol endowment io the Collège, are held as pefmanènt funds, which the College musl hold to perpetuity. Restrict8d reserves includ& bolances in respect of wlich the dor1 has designoted o swcilic purpose ar therefore the Colle9e 15 restricted in the use ol these lunds. Pension schemes The College poiticipoies in the unNeTSlties Superonnuotion Scheme. Tne Scheme is a hyblEd penslon scheme, provKling defined benefits (lor oll rngmbers). tjs well as defined Gontribution benglits. Th& ossets of the scheme are held In o *porute trustee -odminIstered tund. Pecou5e of Ihe mutu(s1 rKJttJre ot rhe schome. the assèts are not attributed to iFKlivi(Jual institutions and a scheme-wide contribution roto is set. For the Finoncial Y8ar Énding 31yfb June 2022 35
Lucy Cavendish College University of Cwbridge Slotementol Prircipol A¢CotIng Polices The College is Ihereloie Èxposed to octuariol nsks ossocioted with othei institution¥ employees ond is unable to identify its share of the underlying assets orKI liobililies ol Ihe scheme on o consistent and reosonoble bosi& As required by Section 28 01 FRS102 f mployee benèfits-. the College therelore accounts for the scheme as tf it were ts wholly defined contribulion scheme. AS o resul¢ the omount chcTrged to the profit and loss occouni represenis the coniTibuiions payoble to the scheme. Since the Cotlege has entered inio an agreement Ithe RgGovery Han). that detèrmines how each employer within the scheme wlll fund the overall dèlic¢ the College recognises a liobility for the contiibutM)ns payable thQt ocise from Ihe agreement (to the extent rhor ihey relate to thè dtlI) ond theretoie on expense T5 Tefjo9nised. Thè Collègè participotes in the Cumbildge Colleges Federated Pension Schemè {CCFPS), a defined benefit scheme which is eKtemolly funded and until 31 Morch 2016 was controcted out of the State Second PensK)n (52p). As CCFPS is a federated Scheme ond the COle is able to identty its share ol the underlying assets and liobililtes. the College volues The fund a5 required by Section 28 Employee Benefits of FRS 102 'Retirement Benelits.. AS a resulL ihe amount charged to the Stotement of Comprehensive Incorne ond Expenditure repre$8ntS Ihe amount colcukjted under FRS102 guideline5. NOW pension The College operates an insured mon8y pur¢se pension schème tor its stoll. The a5$ets of the scheme ore held sepaTately trom those of the College. The Co51ege's contributions to the scheme omounted to £60.533 (2021" £46,597). with contributrons ol £10,177 (2021 £6,875), outstandin9 Ot the balance sheet dote. The College op8rotes o defined contribution pension scheme urKI the pension chacge represents the amounts payable by the Collège to the fund In respect ot the year. Crltl¢ol accountingjudgements The preptsrobon ol the College's occounis requÈres monogement to make jud9emènts. estimates and assumptions th(rt affect Ihe opplication of occounting policies ond reported omounts of ossets ond liabilities, income and expenses. These judgements, estimotes ond associated assumptions are based on historieol expeiEn¢e ond other loctors, including expectations ot furure events ir1 are believed to be reasonable under the circumstcxnce& The Fesulting occounling estimate5 wil( by detinition, seldom equol the reloted actual results. Monogement consider tne oreas set out below to Ihose where criticol occountin9 judgements have been applied and the resulting estimates (]1 assumptK)ns mcry ieod io odiusrments 10 the Iuiure corrying amounts ol osseis ond liobilities. Income recognttion Judgement is applied in determining Ihe volue ond liming of certain income items to be recognis8d in the accoLJnts. This includes determining when performance reloted condttyons have P)een met ond determinlng the oppropriate recogniiion timing lor donotion$. bequests and legacies. kn ggreral. the loter arè rèco9nised when ot the protjate stage. For the Financial Year Ending 30m Jun8 2022 36
LLKY Cavendish College Unwersiiy ol CambrKlge sttstement ol Pnnciptsl AccothÈing Pob"ces Useful Ilves ot proporty. plant and equipment Property, plont and equipment rewesent a SignthOnI proportion of the Collegés ttstol assets. Therefore the estimated usefLFI lives con hove o signlh.cont irnpoct on the depreciation chorged und the College'g reported performance. U5elul live5 are determined at the time the asset is acqijirgd ond reviewed regularly for appropii(rteness The lives are bos on histoncal experiences with simikjr assets, prole55ior)ol advice and anticipation of future events. Detoils of the corrying values of Property, Plant ond equipment ore shown in note & Re¢overabil¥ty ol debtors The provision for doubtful debts ts based on the College's estimate of the expected r8cov&rabiliLy ol those debts. Assumptions orè mode basèd on the level of dèbtors which hove defaulted hiStOrally, coupled with cuirent economrc knowledge. The prowsion is based on the Current situotion of rhe customer, the age profile of the debt and the nature ol the amount due. Retirement beneflt obligotions rhe cost ol delined benelit pension ptans ond other post-employment benef$ are d8termingd usin9 actuoriol voluotK)n& The actuoriol voluation invofves rkIng assumptions obout discount rotes, future salary incieoses. moriolity rates ond future pension increases. Due to Ihe complexty ol the vokJoth)n, the underlying assumptions and the k)ry term noture ol these plans. such estimates aro subject lo significant uncertcjinly. FLJrther details ore gven in note IS. Mon0Ment aT8 SOtistTed thot Universities Superannvation Scheme meets the deliDTtion ol o rnulti- empbyer scheme and has Èherelore recognise(I the discounted lair value ol the controctuol contributions under the funding plan in exisience ot the dole of opproving the occounts. A8 the College is contractuolly txwn¢ to rrnke deficit recovery poyments to USS, this is recognised os a liobility on the bolonce sheel. The provision is currenuy bosed on the uss deficit rocovery plan ogreed ofter the 2020 octuoriol volutstitin, which defines the delicit payrnent required os a percentage ol tuture solaries until 2022. These contributions wtll be ¥eassessed within each triennial voluoiion ot the scheme. The provision is based on mano9ement'S &$iimote ol expe¢ied luEure solory inllatK)n. ¢tnge$ in staff numbers and thè prOI11n9 rate of discount_ Further details are set out in nore 23. For the Financial Yeor Ending 30th June 2022 37
O MJ IQ 0r )M * * f 00
c r4 m IJ) snory to m (v
LutyCarOsh CoHe9e unwty ofCambN(Jge Consolidoied ond Col Stt- As ot 3. Jun• 2022 Consolidated and College Balanee Sheet- As ut 30th June 2022 2021 2021 Con501idated College £000 £OOD cons0dated College £000 Non-current Assets Tar*glble Assets Investments Totsl fton.cuireni assets 44,788 45.012 17,682 17.682 62,470 62.694 36.528 36,586 17,656 17,656 54.184 54.242 Curreni Assets Sto¢k Trade and other receivables Cash and cash equivalents Total current assets io li 19 19 911 2.962 3.892 19 280 1,362 1.661 19 406 1,241 12 3,406 4.005 Credltors: amounts falling due wlthln one year 13 12.2611 (2.1481 11,23dl 11.2391 Net turrent assets 1.744 1.744 427 427 Creditors: arnounts falling due after more than onÈ year 14 116.4401 116,4401 18,0441 18,0441 Provisions Pension provlslons Is 990 9901 46,784 47,IXJ8 15151 42 46,110 515 Tgtal net assets R¢strirtÈd resen Income and expenditure reserve- endowrnent reserve Income and expenditure reserve- restricted reserve Total restricted reser¥es 16 13.020 13.020 15319 15.319 17 3,574 16,594 3.574 16,594 1,448 1,448 16,767 16.767 Unrestrirted reseryes Income and expendiiure reserve- unrestrrcted 30.19Tr 30.414 29.285 29,343 Total unrestrirted reserves 30,190 30,414 29.285 29.343 Total reserves 46,784 47,1#)8 46.052 46.IlQ The hnancial stotements were approved by Goverring Body on 22nd November 2022 ond signed on its beholl b Pr essor t)ome Mctd8k9ine ins thAr5 lesley Thompson Thè notes on pog8s 38 to 64 form pjrt ol thes& linanciol staiements For the Finonciol Yeor Ending June 2022 40
LycyCa¥endtsh College Unibtryiiy L* Can71Kidge Consc4rdoied S[emen1 of Cash Flowsfor ihe year eThYed 30 Junt 2022 Consolidated Statement of Cash Flows forthe year ended 30 June 2022 2022 2021 Note £000 Net cash irrflow from operatin8 activttle5 Cash flows from inve5tinE activities Cash flows from financing èttFVities Increasel(decreasel in cash and tash equivalents in the year 19 3.661 1.628 20 19.7511 12.8401 21 8,128 1.732 2,038 520 Cash and<ash equivalents at the beginningof the year Cash and cash equiv3lents at the end of the year 1.362 12 3.400 1,362 For thé Finonciol Yeor Ending 30Tb June 2022 41
Lucy Cbyendish Cdlegt Ufw*isify ol Cambrid9e Notes to the Accounts Notes to the Accounts Acadefflic fees & Charges Percaplta fee 2022 2021 £,thJo £,ooo 969 601 Fee income received at the Regulated Under8raduate rate £4,625 £8,280. £8,7CI), £9.360. £10,2 BTh £609 £4,472 Fee Income received at the Unregulated Undefgraduale rate Fee income received at the Graduate rale Other fee income received Total Cambridge bursary Income Total 545 1,391 308 1,113 2,912 2,022 290 2312 Income from accommodation, cateringand conferee$ Accommodation College members Conferences College members Conferee5 2,950 55 150 35 1,576 Catering 89 Total 3.190 I7 Endowment retum and investrnent incon 3a Analysis Total return contributton (see note 3b) Income from: Quoted securilies Total 503 426 503 426 503 426 Yb Summary of total rern Income from: Quoted and other securities and cash Totsl Income 385 316 385 316 ILt>ssÉsVgains on endowment assets: Quoted and other securities and tash ILosse5Vgains on endowment assets Investment management costs (see note 3c) Total return for the ye•r 12,5251 (2.5251 2,654 2,654 1931 1821 {2,2331 2,888 Total return transferred to income & expenditure reserve Isee note 3a1 Unapplied totsl return for year induded wtthln statement of Comprehensive Intome and Expenditure (see note 18) 503 426 (2,7361 2.462 For Ihe Financiol Year Ending 30¢h June 2022 42
Lycy c1dh Cdltge Usryvwyiy ofcambndge Notes to thè Accounis Investment management Costs 21>22 2021 £,0 E.oN) 1931 1821 93 82> Quoted securitie5 Total Other income Includes £40k receivable from the GoveTftmenVs Corona Virus Job RetentEon Stheme12021: £246kl Education Expenditure Teaching Tutori31 Admissions Research Scholarships & Awards Cambrid8e bursaryawards Other Educational F3cilitie5 1.285 911 1,021 487 442 134 261 345 iii 397 151 3,940 2,801 Accommodation, cateringand conferences expendlture Accommodation College members Conferences College members Conferences 3,968 75 201 47 2,983 Catering 169 3.155 6a Analysi5 of 2021122 expenthire by activity Stsff tosts Other Op Inote 7) Exps Oepreciation 2022 £,0 £.(Mx) £,0 1,854 159 3.940 1.507 506 4,291 221 Education Accommodatton, catering and conferences oiher 1.927 2,278 182 3.582 4,387 Expenditure Includes fundraising costs of £267.620. Thts expenditure excludes the costs of alumni retètions. 6b Aftalysis of 2020121 expenditure byactlvity stsff costs Other Op Inote 7) Depre¢iatlon 2021 LoYJ £,WO 176 2,801 3.155 303 Education Accommodation, catering and conferences Other 1,277 1.126 150 2553 1.348 1.471 151 2.970 736 6.259 Expendrture includes fundraising costs of £149,517 This expenditure excludes the costs of alumni relalions. For the Finoncial Year Ending 301h June 2022 43
Lucy Ca¥enfthsh CoDege Unl[51[Y ofcambndge tes to the Accounis 6( Audit fees other operating expenses include: Audit fee5 payable to the Colle8e's extemal auditors 2021 £,oL £,1 20 21 21 Staff costs Non •demit 2022 £,tJ)O £ 1.938 2.343 166 192 195 880 166 AMi£ Staff costs 2021-22 Sataries National Insurance Pension CQSts Externol teachin8 costs Total 405 26 166 1299 3.581 Non Academic 2021 £.o(KJ £,000 1.577 1.916 130 155 370 Staff costs 202ty21 Salarres National Insuran Pension costs External teaching cost5 Total 339 25 112 112 2,555 566 1.987 Included within non academic salaries are the President. Domestic Bursar. Registrar. Bursar, Development Director and all other non-teaching staff Average staff no 202Z AveraEe staff no 2021 No. of fellows FfE No. of fellows Academic 25 NIA 4.62 19 NIA 4.62 Non academi Total fellows 30 4.62 24 4.62 other non academic teachin8 staff 66 59.48 59 46.31 Total lellows and staff fAiO 8a 50.94 Average staff numbeTS does not irKlude external teather5 At the Balance Sheet date there were 4512021: 501 members of the Governing Body. DurinE the year the averase number recetving remuneration was 22 fellows. 10 Bye fellows and one research fellow (2021- 20 + 21. No officer or employee of the College. including the Psident. Teceived emoluments of over £l(KJ,000 For the Financial Year Endfftg 30th June 2022
LvcyCa¥endith College LknKveisiiy of Cambti¢b3e Notes to ti)e AOnts 8 Key Management Personnel Key management personnel are those persofts having authority 8ftd responsibility for planning, directing and controlling the aCiNities of the College. This includes aggregated remuneration paid to key management personnel i.e. President and all stipendiary Fellows. Aggregated remuneration consists of salary. employerfs national insurance, employees pension plu5 any taxabte benefits either paid, payable or provided. gross of any Salary sacrifice arrangements. 2022 2021 £.CrfJO E,IX)D 579 510 Key Managemem Personnel The Trustees receNed no remuneration in their capacity a5 Trustees of the Charity. For the Financiol Year Ending 30th June 2022 45
Lucycwendish Colkge uriversiryof Ct9e Notes lo the Accounts 88 FMed A$sets- Consolidated Bulldlw In¢ under Furnilure Kitthen Library Meth Total Tatal ¢ortstrwrtSon & Equlp Equip Books Equip 2022 202L £.ooo £,0[ £.(xx) £,{ £.[ £,000 £,000 COSTIVALUATION At istjufy 2021 Additions Di5POSats at costlvaluation Revaluation duTifiE the year Cost valuation at 30th June 39.365 8.751 568 li 937 51 77 703 25 141 1,324 42.974 42,269 81 8,930 1,979 141 11,274) li 48,116 579 988 88 1,405 51,900 42,974 DEPRECIATION Al 1st July 2021 Provided for the year Eliminated on disposal Depreciation at 30th June 3.395 521 23 72 323 18 iii 340 1.255 82 6.446 5,881 667 736 111 1171 7,112 6,446 52 932 79 1337 Net book value AI 30th June 2022 44236 35 56 68 44,788 At 30th June 2021 35.970 47 57 36,528 The Insured Value of Freehold Land and Buildin8s as at 30tPt June 2022 was £28.387,76412021: £28,078,905> The consolidaled c051 of freehold buildings and assets in coristruction consists of the c05t5 incurred by the College less the surplus recorded in the accounts of Lucy Cavendish Estates Llmited. a subsidiary undertakin& and eliminated on consolidation. For Ihe Finonctol Yeof Ending 30" June 2022 46
Lucy Cavendish Cdlege Un[[Y of C*niwith)e Notos t¢ the A¢¢oynts 8b Fi¥ed Assets- College Only C•lle8e 8uildines in¢ Kltdwn Ubrnry fvleth Total Total structlott & EquSp Equlp aoks Equlp 2022 2021 £,000 £.IXX) C) £AXX) £Q)O £,o(KJ £.Th)o cosr/vALUATION At 1st July 2021 Additions Disposals at cost/valuation Revaluatton during the year Cost valuation at 30th June 39,423 8.917 568 li 937 51 77 703 1,324 43,032 42.291 81 9.096 2,015 141 11,2741 li 25 48,340 579 724 1,405 52.124 43,032 DEPRECIATION At 1st July 2021 Provided for the year Ellminared on disposal Depreciation at 30th June 3,395 485 521 23 72 323 18 iii 340 1,255 82 6,446 5,881 667 736 111 11711 7,112 6.446 52 380 932 79 1,337 Net b¢>ok value At 30th June 2022 44,460 68 45,012 At 30th June 2021 36.028 47 57 69 36,586 The Insured Value of Freehold Land and Buildings as at 30th June 2022 was £28,387,76412021.' £28,078,905) The con501idaled cost of freehold buildirkgs and assets in construttion consists of the costs incurred by the College less the surplus re£orded in the accounts of Lucy Cavendish Estates Limhed. a subsidiary undertakin& and eliminated on consolidation. The cost of assets under cortctIon at the balance sheet date wa5 £11,977m12020121 £3,058ml For the Finonciul Year ErKJing 30Th June 2022 47
. Lu<y C0VersSh Colk9e UThvtr9ty ofCarnbivJge Notes lo thè Accowts Inve#ments 2022 2021 £.(KID £.Oth) 17.656 14.268 22 1291 4.162 3.651 {2,9561 12.476} Balance bld 1st JUFY Gain on works of art/property Additions Disposals at open market value Increase/{decre85e) In cash held by fund managers ILossl/gain on revaluation Balance clftvd June 1.017 11461 12.2191 2.386 17.58Z 17,656 2022 2021 £,)0 £( Represented by: Other inveslments Quoted securtties- equities Quoted securtties- europeloverseas Quoted securtties- fixed interest Cash in hand and at investment managers 430 4.627 .397 2,244 1,984 17,682 17.656 5,792 8.148 2.343 965 Historical cost of investments 2022 2021 Total historical cost of oiher investmenls Total historical cost of investment portfolio £357 £357 £15,590 E12.237 For the Financial Yeor Ending 301h June 2022 48
' Ltjcy CèvendthCoRege universKty oIC3Mlge Notes to the Accovnts 10 Stock Consolidated Colle8e Con501idated College 2022 2022 2021 2021 £,IXKI EAKID £,ooo £,000 19 19 19 19 Stock 11 Trade and other retelvables Consofidated College Consolidated College 21ll2 2022 2021 Z021 £,oco £.0 L(rfJo £,( 26 16 39 13 356 243 Conference debtors control Members of the College Prepayments and accrued income Other 39 356 13 260 159 125 911 280 12 Cash 2022 2022 £,0j £00 3.382 2,937 25 25 2021 £,0 1,361 2021 Current Accounts Bank Dep051ts Cash 1,240 3,407 2.962 1241 Creditors: amounts falling due within one 13 year 2022 2022 £.TrJD £.LNJO 893 793 387 387 596 583 2021 2021 £,000 66 Trade Creditors University Fees Accruals and deferred income Members of the tollege Conference deposits Other 441 256 636 125 226 221 125 12 17 147 147 404 2,261 2,148 1,241 14 Crditors: amounts falling due after more than one year Private Placement Funding Privale Ptacement Funding UnNersity loan 2022 2022 £.0[ £x 3.480 3.480 2.564 10.396 10,396 2021 2021 £.Thw £,0 3,480 3,480 2.564 2,564 2,CQO 16,440 16,440 8.044 8,044 During 2013-14. the College borrowed from institutional investors. collectwely with other Colle8e5, the College's share being £6.044 million. The loans are unsecured and repayable during the period 2043-2053, and are at fixed interest rates of approxlmately 4.4%. The College has agreed a financial covenanl of the ratio of Borrowings lo Net Assets and has been in compliance with the covenant at all times since incurrin8 the debt. During 2020-21 the College agreed a loan facility of E16m with the Universily of Cambridge on which it had drawn down EIO.4m at 30 lune 2022. The Coltege has been in compliance with the financial covenants associated with this loèn throughout the period For the Finonciol Yeor Ending 301h June 2022 49
Lu£y Ca¥endish College UThvEisily of CambrKJge Ntsigs to the Accoun1& 15 PensioN provisions Consolldated Collegè Consolidated College Z022 2021 2021 515 512 512 Balance at beginnin8 of year Movement In year: Current service cost includin8 life assuran 515 Contributlons Other finance lincome)Icost USS Actuarial (Lossllgain recognised in SOCIE CCFPS Attuartal {LosslJ8ain recognised in SOCIE Balantè at end of year 12131 12131 11951 12 218 11951 12 218 1291 990 1291 990 1321 515 1321 515 Consolidated College Consolldated College 2022 202Z 2021 20ZI CCFPS 66 66 96 uss 924 924 419 419 Total 515 515 For th& Financiol Year Endin9 3, June 2022
LiKy CJ4erKlish Cdlege Unnefgty ol Camhidge Noies to Ihe A¢counis 16 Endowment funds 202Y22 Consolidated and College $tricted net assets relating to endowments are as follows: Restrirted Unrestricted pernianent permanent endowments endtr*miertts 2022 202L £,0 £,o(xJ £ 10.592 15.319 12.941 25 25 14 1431 11431 11231 1931 193} 1821 Balance at beginninB of year. Capital Transfer io general reseNes IDecreasel/increase in interest Investment management charges IDe£reasel/lncrease in market value of investments 4.727 17331 11,3551 12,0881 2,569 9,026 13,020 15,319 Balance at end of year Represented by: Capital 3.994 9.026 13,020 15.319 Analysts by type of purpose: Fellowship funds holarship funds Prizes funds Hardship funds rravel grant funds Other funds General endowments Total 1.175 1.767 76 349 1,175 1.396 1,767 2.097 76 90 349 417 625 625 725 9.026 9,026 10.592 9.026 13.020 15319 Ana1$ b¥ asseL' Investments 9.026 13.020 15.319 9,026 13.020 15.319 For the Financiol Year Eriaing 30" June 2022 51
lY(8¥enh Coll¢ge unwel5Y of C3mt*icSJe Notes io the Attixmts 16 Endowment funds 2020121 Consolidated and College restricted net assets relating to endowments a a5 follows: RÈstrirted Unre5trirted permanent pernianent endty•ffl endowments 2021 2020 £.OIXI £.1) Li 8.964 12.941 13.754 L70 Balance at beginning of year. Capital New endowments received Transfer to general reserves IDe(reasel/increase in interest Investment management charges Increase/ldecrea5el in market value of investments 3,977 14 14 11231 11231 1821 1821 1521 {721 750 1.819 2.569 18591 10592 15,319 12.941 Bttlan¢e at end of year Represented by: Capital 4,727 10592 15,319 12941 Analysi5 by type of purpose: Fellowship funds Scholarship funds Prizes fuftds Hardship fund5 Travel grant funds oiher funds General endowments Totsl 1.396 2.097 1,396 1.170 2,097 1,760 75 417 417 725 725 622 10.592 10.592 8,964 10.592 15.319 IZ,941 4.n7 Anal1$ by a$set: Investments 4.727 4,727 10.592 15,319 12.941 10592 15.319 12.941 For the Financiol Year Ending June 2022 52
L4JcyCendlScdlE5e Uriver%ty ofCamt8 Notes to the Accolnts 17 Re5trlrteql re5erve5 2021122 Consolidated and College reseNes with restrictions are as folk¢ws: Pernianert Unspent aml Capltal" restrIcd fundsl inEomt unspent donations 2022 2021 Balance at beginning of year. Capital Accumulhted income 411 416 1.032 154 1,091 1.032 Newgrants New donations 2,635 433 3,068 354 Investment income 190 128 Incfease/lde¢reasel in market value of investmeftts Capital grants utilised Expenditure Balance at end of year {2891 {289} {3} 18401 3.574 141 171 12681 131 16651 3.192 11751 380 Analysls of other restrlrted funds/donatlon5 by type of purpose Fellowship funds Scholarship funds Prizes funds Hardship funds Travel grant funds Other funds General Total 584 590 571 21 23 578 753 19 282 19 17 23 2.283 2.367 70 3,192 3574 Balance at end of year: Capilal Accumulaied income Balance at end of year 383 3.192 3574 416 1.032 3.192 3,192 For the Financlal Year Ending 301fb June 2022 53
LtKy tsent*5h Cole9e u[Th{SIty of caMld9e Noles to Ihe Accounts 17 Restricted reserves 2Q20121 Consolidated and College reserves wtth $trilOn$ a as follows: Permanent unspent and other restri¢ted income Other Capitsl restrirted grants fundsl un¥)ent donattons 2021 2020 Balance at begSnnSng of year. Capital Actumulated income li 143 154 1,091 336 871 1.091 New grants Newdonations 16 337 354 263 Investment income 128 128 133 IDecrease)lincrease in market value of investments Capttal grants Utili5ed Expenditure Balance at end of year 141 141 118} 171 li} 1651 12681 1339} 411 1.448 1245 171 2031 1.ty32 Analysls of ¢)thèr restrkted fundsldonations by type of purpose Fellowship funds Scholarship funds Prizes funds Hardship funds Travel grant fvnd5 Other funds General Total 570 374 578 753 19 23 571 379 514 24 48 23 47 23 70 76 12 1,245 1.032 411 1,448 Balance at end of year: Capilal Accumulated income Balance at end of year 4LI 416 1.032 411 1,448 155 1.090 1,245 .1.032 1.032 For the Financiol Yeor Ending 301h Jung 2022 54
Lucy Cavendish COle lthivefsify ofcamtffjFdge Notes to the Accounts 18 Memorandum Unapplied Total Return Included within reserves. the following amounts Present the Unapplied Total Return of the College.. 2tr22 2021 £,000 Unapplied Total Retum at beginning of year Unapplied Total Return for year {see nole 3bl Unapplied totsl return at year end 7,962 12,736) 2,462 For the Finonciol Yeor Endin9 301h June 2022 55
Lucy Cavendish Cd Uni*isity ol Cambrioh)e Notes to Ihe AC¢Otints Re¢otteiliotion of corffjolldated surplus for the yearto net osh inflow from operating artfvlties 19 2021 £,0 1.715 £.000 732 Surplus for the year justrnents for non-cash items t)epreciation IDecrea5el/lnryease in cash held by fund managers Pension defictt Increase/lDecreasel IlncieasèllDecre4se in Stock5 Ilncieèsel/Decrease in Deblors Incre8se/lDecreasel in Creditors 667 11,0191 475 736 147 131K)I 1,026 849 185 143 1.216 Adjustments for invesling or financin8 artivities Investment Income from dividends/rents Gaiftsjllosses) on investments 13851 2,219 1.834 1316 12.3861 12,7021 Interest poyable -bond and loan IProfitll Loss on the sale of fixed assets 1221 246 1.131 1.399 Net Cash inflow from operating artfvlties 3.661 1,628 Cash flows from in¥e5ting aclivities Investment income from dividendslrents Purchase of investments Sale of Investments Payments made to acqui fixed assets Totsl cash flows from iftvesting activltles 385 14.1621 2,956 8.9301 19.7511 316 13.6511 2.474 11,9791 12,8401 Cash fl¢)W5 from financing activitiès Interest payable - bond New Ioan Repayments of amunts borrowed Capital element of finance lease rental payments Totsl ash flows from finarfing arti¥itre5 12681 8.396 12681 2.000 8.128 1.732 For the Financial Year EndirYJ 30" June 2022 56
Lucy C3¥enth5h Colege UnNergiy ofCèmbnÉty& Notès to thè Accounts Con501idated reconciliation and analysis of net debt Changes market New Other non value At 301h finance tasPt and eM¢h June leases thaiv rates 2022 Atijuty 2021 C•shfl(ws dtsposal 5ub5 £)0 ÉODO 3,406 Cash and cash equivalents 1,362 2,044 Amounts falling due after more than one year Universlty loan Bond -Aviva Bond -canada Life Bond . Prtcoa Total 8.396 10,396 1,959 1,521 2,564 16,440 1.959 1.521 8396 22 Lease obfigations At 30th June. the Colle8e had commitments under non- (ancellable operating Ieases as follow 2022 2021 Land and buildings: Expiring wlthin one year Expiring between two and five years Expiring in over five year5 2.307 1.7n 1.937 3.264 4.244 For the Financiol Year Endin9 30" June 2022 57
Luiy CaveNfish Co¥ege UnvlY of Cambt19e lknte$ to the Accounts 23 Pension 5themes FRS 102 Section 28 Post Employment Benefits Critical actountinE Sudgements FRS 102 makes the distinction between a Eroup plan and a multiemployer scheme. A group plan consists of a collection of entiiies under common control typically with a sponsoring employer. A multi-employer scheme is a scherne for entities not under common control and represents {lypicallyl an industry-wide scheme such as UnNersilies Superannuation Scheme. 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 deftcit results in the recognition of a liability for the contributions payable thot arise from the agreement (to the extent that they relates to the deficitl and the resulting expense in the profit and IDSS in accordance with section 28 of FRS 102. rhe directors are 5atisfted that the scheme provided by the Untversities Superannuation Scheme meets the definition of a multi-employer scheme and has therefore recognised the disttsunted fair value of the contractual contributtons under the recovery plan in existence at the date of approving the financial statements. Penslon Costs The total cost charged to the profvt and10ss account is £204k12021.' £183kl as shown in Note 15. The latest available complete actuarial valuation of the Retirement tncome Builder is 3s at 31 Mèrch 2020 {the valuation date), and was carried out using the projecte(J unit method. Since the College cannot identify its share of USS Retirement Income Builder (defined benefitl assets and liabilities, the following disclosures reflect those relevant for those assets andlsabilities as a whole. The 2020 valuatton was the stxth valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires 5cheme5 to have sufficient and appropriate assets to cover theiT technical provision5. At the valuation date. the value of the a55els of the scheme was £66.5 billion and the value of the scheme'5 technical provisions was £80.6 billion indicating o shoTtfall of £14.1 billion and a funding ratio of 83%. The key financial assumptions used in the 2020 valuation are described below. More detail is set out in the Statement of Funding Principles Iu55.co.uVabout-uslvaluation-and-fundinglstatement-of-lunding- principles)- CPI assumption Temi dependent rates in line with the difference between the Fixed Inte$1 ènd Index linked yield curves less: l.l% p.a. 10 2030. reduting linearly by 0.1% p.a. to a lon8-term difference of 0.1% p.a. from 2040 CPI assumption plus 0.05% Pension increases 15ubjecl to a floor of Discount rate Iforward rates) Fixed interest gilt yield curle plus: Pre-retirement: 2.75% p.a. Post retirement- l.CO% p.a. For the Firnncial Year Ending 31yh June 2022 58
Lucy Cbvthlish Cdlege Universiiy of Motes to the AccoLmlS The main demo8raphic assumptions used relate to the mortality a55umptions. These assumptions are based on anaEysis of the scheme's experience carried out as part of the 2020 actuarial valuation. The mortality assumpttons used in these figures a as f¢llows- 2020 valuation IOl%of $2PMA"Ii Mortalit base table ht" for males and 95% of S3PFA for females Future improvements to mortality CMI 2019 wtth a sm¢)othing parameter of 7.5. an initial additlon of 0.5% p.a. and a long-term improvement late of 1.8% pa for males and 1.6% for fema5es The current lrfe expectancies on retirement at aBe 65 3re= 2021 1 Males currently aged 65 lyeaT51 Females CUrntIY aged 65 (years) ears) Females currently a8ed 45 lyearsl 23.9 25.5 24.7 1 26.1 26.7 25.9 27.3 27.9 A new deficit recovery plan was pur in place as part of the 2020 valuation. whid) requires payment of 6.2% of salaries over the period i April 2022 until 31st March 2024, at which point the rate will Increase to 6.3%. The 2022 deficit recovery liability reflects this plan. The liability figures have been produced using the following assumptions: 2022 3.31% 2021 0.78% 3.20% Discount rate Pensionable sala rowth For thè Finoncial YeL7r Ending 30 June 2022 59
Lucy Cavendish College UThversty OfCamd9e Wes to the Accounis Cambridge Colleges Federated Pension 5d)eme The College operates a defined benefits pension plan for the College'5 employees of the Cambridge Colleges, Federated Pension kheme. The liabilities of the plan have beÈn £alculated, at 30 June 2022. for the purposes of FRS102 using a valuation system designed for the Management Committee, artin8 as Trustee of the Cambridge ColleEes' Federated Pension Scheme, but allowing for the different assumptions required under FRS102 and taking fully into coftsideratlon changes in the plan benefrt structure ond membership Sin that date. The principal actuarial assumptions at the balance sheet date were as follows: 2022 %pa. 2021 % p.a. Dlscount rale RPI assumption 3_45• CPI assurT)Ption 2.75 Penston increase5 in payment IRPI Max 5% p.a.) 3.30* 'For I year only, we have assumed that RPI will be Il% and CPI will be 9%. The caps under the Rules are applied to assumed pension increases. 3.40 The underlying mortality a55umption is based upon the Standard table known as S3PA on a year of birth usage with CMI 2021 future improvement factors and a long-term rate of future improvement of 1.25% p.a., a standard smoothing factor17.01 and no allowance for additional improvements12021.. S3PA with CMI_2020 future improvement factors and a long-term futu improvement rate of 1.25% per annum, a standard smoothin8 factor17.013nd no allowance for additional improvements). This results in the following life expeciancies.. Male age 65 now h3s a life expectancy of 21.9 years (previously 21.9 years) Female age 65 now has a lrfe expertaftcy of 24.3 years (previously 24.3 years} Mèle age 45 now and retiring in 20 years ha5 a life expertancy of 23.2 year5 Ipreviously 23.2 year5} Female age 45 now and retiring in 20 years has a life expectancy of 25.7 years (previously 25.7 years) Members are assumed to retire at their [mial retirement age {651 apart from in the following indicated cases: Male 63 Fernale 62 Deferred Members- Option l Benefits 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 communication factors in these cakulations. The amounts recognised in the Balance Sheet as at 30 June 2022 (with comparative figures as at 30 June 2021) are as follows: 2022 2021 Present value of plan liabilities Market value of plan assets Net deftned benefit asset/llhabilityl 1358.7201 293,182 165,5381 1443,1981 347,288 195,9101 The amounts to be recognised Profit and Loss for the year ending 30 June 2022 Iwith comparatNe figures for the year ending 30 June 20211 are as follows. For the Financial Year Ending June 2022 60
Lucy C3vendryh Cdlege unfverslly ofC3mthitye tès to the Accounts 2022 2021 Current servi£e cost Administration Expenses Interest on net defined benefit lassetl/liabilitv IGainl/loss on plan changes Curtailment Igain1/1055 Total 4,378 1.687 4.154 6,065 6,038 Changes in the present value of the ptan liabilities for ihe year ending 30 June 2022 {wlth comparative figure5 for the year ending 30 June 20211 are as folb)ws.' 2022 2021 Present value of plan liabilities at beginning of period Current setvlce cost {induding Employee confributionsl EmVoyee contributions 443,198 460,555 Beneftts pald Interest on plan liabilities Actuarial Igainslllosses IGainl/loss on plan changes Curtailment Igainl/loss Present value of plan liabilities at end of period 111,0641 7.878 181,2921 110,6431 6,601 113,3151 358.720 443,198 Changes in the fair value of the plan assets for the year endin8 30 June 2022 (with comparative figures for the year endin8 30 June 20211 are as follows: 2022 2021 Market value of plan assets at beginning of period Contribut40ns paid by the Colle Emplo ee contributions Benefits paid Administratlon Expenses Interest on plan a5set5 Return on assets, less interest included in Profit & Loss Market value of plan assets at end of period Actual return on plan assets 347,288 7.768 330,644 {11.0641 14,6131 6,191 152,388 293.182 146.1971 110,6431 13,8041 4,717 18,830 347,288 23,547 The major categories of plan assets for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 20211 are as follows: 2022 52% 34% 14% 2021 48% 42% io% i(x)% Equities Bonds & Cash Property Total The plan has investments in property occupied by, assets used by or financial instruments issued by the College. For the Financial Year Endng 30th June 2022 61
Lucy cavendish College Un(51[Y ol M49e )tes 10 the Accounts Analysis of the re.measurement of the net defined benefit liabilily recogntsed in Other Comprehensive Income IOCII for the year ending 30 June 2022 Iwith comparative figures lor the year ending 30 June 2021) are as follows". 2022 2021 Return on assets, less interest included in Profit & L05S Expected less actual plan expenses Experien gains and105se5 arising on plan liabilities Changes in assumptions underlying the present valtje of plan liabilities Actuarial gainl{lossl recognised in OCI 152,388) 12351 (24.1401 18.830 350 7,958 105.432 28,669 5,357 32,495 Movement in net defined benefit a55et/{liabilityl duri the year ending 30June 2022 (with comparative figures for the year ending 30 June 20211 are as follows= 2022 2021 Net defined benefit a5set/lliabilityl at beginnin8 of year Recognised in Profit and Loss Contributions paid by the College Re-measurement of nei defined benefii liabilrty recognized in oci (Deficilllsurplus in pian at the en(S of the 195.9101 16,0651 7.768 {129.9111 16,0381 28,669 165.5381 32,495 195.9101 ar 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 aUmpI10nS underlying the artuarial valuation are different to those adopted under FRSIO2. The last Such valuation was as at 31 March 2020. This showed that the plan'5 asse1s were insufficieni to cover the liabilities oft the funding basis. A Recovery Plan has been a8reed with the College, which commits the College to paying contributions to fund the shortfall. These deficit reduciion contributions are incorporated into the plan's Schedule of Contributions dated 21st May 2021 and are as follows.- Annual contributions of noi less than £3,390 p.o. payable for the period to 31 December 2026. These paytments are subject to review following the next funding valualion. due as at 31 March 2023. For the Finoncial Yeor Ending June 2022 62
L¥ Cwrfish Cdlege uniw.rsity ofCèmts£tye Noles to ¢tbACCount$ 24. Principal Subsidiary Undertakings Company Number 02844689 Country of Incorporatlon Cost and Operation England aass of Share5 Ordinary Proportion of shares held loo% Lucy Cavendish Trading Limited Lucy Cavendish Estates Limited 12218836 Englar)d Ordinary loo% The principal act4Vity of the above companies is detailed in the directors, reports of the individual companies, flnancial statements and are included in the consolidated summary of income and expendilure and net assets and liabilities for thÈ year. Lucy Cavendish Trading generaied profrts of £19k12021: £IOkl for the year and has net asset5 of £212021: £21 Lucy Cavendish Estètes Limfted generated profits of £141k12021: £14.5k} for the year and ha5 net assets of £112021- É12 Lucy Cavendish Tra(Sing Limtted College supplies varied conference seThices. Lucy Cavendish Estates facilitates estates ijevelopment for the Colle8e. ReElslered offKe address: Lady Margaret Road Cambridge CB3 OBU For the Financial Year Ending 3h June 2022 63
Lu<y Caendish coe9e UThveryiy of cambrge Not to th& Ac¢ounls 25 Related Party Transactions Owing to the nature of the College's operations and the composition of the College Council. it is inevitable that transactions will take place with organisations in which è College Council member may have an interest. All transactions invotving organisations in which a member of the College Council may have aft interest are conducted at arm's lengih and irb accor(SarKe with ihe College's normal procedures. The College mainiains a register of interests for all College Council Members and where any member of the Colle8e Council has a material interest in a College mater they are required to declare that fact. During the year no fees or expenses were paid to Fellows in respect of their dutres as Trustees. Fellows are remunerated for teachin& research and other duties Wlthin the College. Fellows are billed for any private catering. The Trustees remuneration ts overseen by the Salaries and Remuneration Committee The salaries paid to Trustees in the year are summarised in the table below. From £0 £io.c()i £20.Crf)I £30.1 £40,(KJI £50,IXII £60,C()I £70,(K)I £80.WI 2022 19 2021 12 £iO,LK)O £20.WO £30.000 £40.000 £50.000 £60,000 £70,IiCK) £80,0 £g0,OCQ Toral 33 22 The totsl trustee salaries were £578k for the year12021." £553k} The trustees were also paid other taxable benefits {includinB associated employer National Insur3nce contribution5 and employer contributions to pensions) which totalled £167k for the year12021: £150kl The College has two trading subsidiary undertakings which are consolidated into these accounts. All subsidiary undertakings are la0% owned by the College and are registered and operating in England and Wales. The College ha5 taken advantage of the exemption wtthin section 33 of FRS 102 not to disclose iransactions with wholly owned group companies that are related parties. There are no other related party transactions to note. For the Fina101 Year Ending 31yh June 2022