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← Lucy Cavendish College In The University Of Cambridge

2024-06-30-accounts

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Annual Report and Accounts

For the Financial Year Ending 30[th] June 2024

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Contents

Contents

Description Pages
Members of the Governing Body 2
Reference and Administrative Details 4
Report of the Governing Body 5
Corporate Governance 21
Responsibilities of the Trustees 24
Report of the Auditors 25
Statement of Principal Accounting Policies 28
Consolidated Statement of Comprehensive Income and Expenditure 37
Consolidated Statement of Changes in Reserves 38
Consolidated and College Balance sheet 39
Consolidated Cashflow Statement 40
Notes to the Accounts 41

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Corporate Governance

Members of Governing Body during the year to 30 June 2024

President Madeleine Atkins PHD DBE CBE FASS
Alireza Patricia,PHD DSC,Senior Scientist,Cavendish Laboratory
Bahn Professor Sabine MD PHD MRCPSYCH, Professor, Bahn Laboratory, University of
Cambridge
Baikie Tomi, Director of Studies, Physics and NanoDTC Translational Prize Fellow, Cavendish
Laboratoryto 15 April 2024
Baker Renan, DPHIL, Affiliated Lecturer and British Academy Research Fellow, Faculty of History;
Tutor,LucyCavendish College to 30 September 2023
Becque Jurgen,PHD,UniversityLecturer in Structural Mechanics in Engineering
Blakesley Jennifer,BSC,DeputyHead of Education Services,Universityof Cambridge
Bullmore Professor Ed,Professor of Psychiatry,Universityof Cambridge
Cameron Professor Ruth MA PHD FIMMM FINSTP CPHYS, Professor, Materials Science and
Metallurgy, University of Cambridge; Research Mentor in the Sciences, Lucy Cavendish
College
Clare Isabel Clare Huntingdon, BSC MPHIL MPHIL PHD, Affiliated Assistant Professor (Research),
Clinical School,Universityof Cambridge,Tutor,LucyCavendish College
Cordonier-
Segger		 Professor Marie Claire, LLB BCL MEM DPHIL PHD, Affiliated Fellow of the Centre and
Leverhulme Trust Visiting Professor with the Bennett Institute for Public Policy, the Centre
for Environment,Energyand Natural Resources Governance(C-EENRG)and otherpartners
Cotta Bruno, BEng, MBA, Visiting Fellow and Honorary Ambassador, Cambridge Judge Business
School
Daffern The Rev’d Canon Adrian, BA MA MTH FRCO FRSA, Church of England Cathedrals and Major
Churches Officer;Tutor,LucyCavendish College to 30 September 2023
Fan Xin PhD, Teaching Associate in Modern Chinese History, Faculty of Asian and Middle
Eastern Studies,Universityof Cambridge
Fistein Dr Elizabeth, Medical Member of the First Tier Tribunal (Mental Health); the School of
Clinical Medicine Ethics and Law Lead for the courses in Clinical Medicine, Tutor, Lucy
Cavendish College
Fowell Mr Christopher, BDS MFDS MBCHB FRC, Consultant, Oral and Maxillofacial Surgery,
Cambridge UniversityHospitals NHS Foundation Trust.
Gilbey Julian, PhD, Researcher in image processing, Department of Applied Mathematics and
Theoretical Physics,Universityof Cambridge
Git Anna, MSC PHD, Independent Senior Research Associate, Department of Biochemistry,
Universityof Cambridge;Tutor,LucyCavendish College
Gonzalez JohnHenry (Hank), PHD, University Assistant Professor in Caribbean History, University of
Cambridge to 30 September 2023
Goodall Jane, BSC PHD, Senior Research Associate in in the School of Clinical Medicine, University
of Cambridge and Tutor,LucyCavendish College to 30 September 2023
Greatorex Jane Suzette BTEC FMLS PHD, Honorary Research Scientist, Public Health England; Senior
Tutor,LucyCavendish College
Haque Nooman,MBA,Partner,Sofinnova Partners
Harold Professor Gordon, Professor of Psychology of education and mental Health, University of
Cambridge from 1 October 2023
Heather Dr Alison, synthetic and molecular biologist at the University of Otago and founder of
Insitugen,from 4 October 2023
Hendriks Professor Henriette PHD, Professor in Language Acquisition and Cognition, Faculty of
MMLL, Lucy Cavendish College; Vice-President and Research Mentor in the Arts

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Corporate Governance

Houghton Margaret Christine BA MA, Domestic Bursar and Wine Steward, Lucy Cavendish College to
1 July2023
Hughes Sophie,Assistant Senior Tutor: Pastoral,LucyCavendish College
Jones Derek,Chief Executive,Babraham Bioscience Technologies
Keller Katie,BM MA,CGCM course tutor appointed bythe Clinical Schools
Khabirpour Nabil,PhD,Founder and Director of the Law Corner,4 October 2023
King Mark,MA MPHIL PHD PGCE,Admissions Director and Assistant Senior Tutor: Academic
Lloyd Richard, MMUS PHD MBIE MSC PHD FRCPATH Human Anatomy Centre Manager,
Department of Physiology,Development and Neuroscience,Universityof Cambridge
Macdonald Chris PhD, Head of Communications and Marketing and Sustainability Engagement Lead,
LucyCavendish College
McNiff Tony,Bursar,from 1 September 2023
Murphy Mary PHD, Undergraduate and MPhil supervisor in Education, University of Cambridge;
Tutor,LucyCavendish College
Mysoor Poorna LLB LLM DPHIL,College TeachingOfficer in Law
Na Xiaoxiang PHD, Assistant Professor in Applied Mechanics, Department of Engineering,
Universityof Cambridge,1 July2023
Naegele Tobias,PhD,NanoDTC Nano Futures LeadershipPrize Fellow,from 4 October 2023
Nelson Howard, PHD, Lecturer in Conservation Leadership, Fauna & Flora International, Tutor,
LucyCavendish College;ActingVice-President,LucyCavendish College from 1 April 2023
Nugent Eileen MaryBSC MPHIL DPHIL,Tutor,LucyCavendish College
Ottewell Professor Karen, MA MPHIL EDD PHD MCIL FRSA, Director of Academic Development &
Training for International Students, Language Centre, University of Cambridge; Tutor, Lucy
Cavendish College
Quie Marissa,PHD,Research Associate,Department of Sociology,Universityof Cambridge
Ryan Joanna BSC,Development Director,LucyCavendish College
Saddington Liam BA, MSc, DPhil, Teaching Associate in Human Geography, Department of Geography,
Universityof Cambridge
Sparkes Dr Matthew, MA PHD, Assistant Professor, Department of Sociology, University of
Cambridge
Stott Professor Neil, MST DPROF, Faculty (Professor-level) in Management Practice, Co-Director
of the Cambridge Centre for Social Innovation; Director of the Master of Studies in Social
Innovation Programme,JBS
Strack Franziska, Newton Trust Career Development Fellow in Politics of the Environment, POLIS,
College TeachingAssociateship,LucyCavendish College
Su Lin PhD, Leverhulme Early Career Fellow, Department of Chemistry, University of
Cambridge
Sutliff
Sanders		 Joe, MA PHD University Associate Professor in Education, University of Cambridge
Talmi Deborah,MA PHD,UniversityAssociate Professor in Psychology,Universityof Cambridge
Thompson LesleyMargaret MA MA FCA,Bursar,LucyCavendish College to 30th September 2023
Tonkin Suzanne,Librarian,LucyCavendish College
Vinnicombe Alison Annette BA MA Dip RSA, Dean, Praelector, Registrar, Steward, Secretary to Council
and Secretaryto GoverningBody,LucyCavendish College
Walker Gore Clare,PhD,College Assistant Professor in English,from 1 September 2023
Wilson Dr Shona BSC PHD, Research Group Leader, Division of Microbiology and Parasitology,
Department of Pathology,Universityof Cambridge,Tutor,LucyCavendish College
You Vivian Wei Man MA MB BCHIR MRCP, Joint Course Director CGCM,

Reference and Administrative Detail

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Corporate Governance

Lucy Cavendish College

Lady Margaret Road Cambridge CB3 0BU

Charity Registration Number: 1137875

Charity Trustees

See list on previous page.

Senior Officers

President: Professor Dame Madeleine Atkins PhD DBE CBE FaSS Vice-President: Professor Henriette Hendriks PhD Senior Tutor: Dr Jane Greatorex BTec FMLS PhD Bursar: Mr Tony McNiff LLB FCILT FCA

Principal Advisers

Actuaries:

Property Valuers & Consultants:

Cartwright Group Bidwells Mill Pool House Stonecross Mill Lane, Godalming Trumpington High Street Surrey GU7 1EY Cambridge CB22 9SU

Auditors:

Price Bailey LLP Tennyson House Cambridge Business Park Cambridge CB4 0WZ

Bankers:

Barclays Bank 9-11 St Andrews Street Cambridge CB2 3AA

Securities Managers:

Sarasin & Partners LLP Juxon House 100 St Paul’s Churchyard London EC4M 8BU

Securities Managers: University of Cambridge Investment Management Limited The Old Schools, Trinity Lane, Cambridge CB2 1TN

Securities Managers:

UBS Wealth Management (UK) Ltd 5 Broadgate London EC2M 2AN

Report of the Governing Body

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Introduction

Lucy Cavendish College was founded in 1965 as a Collegiate Society. Initially a graduate Foundation, it admitted its first undergraduates in 1972. It became an Approved Foundation of the University of Cambridge in 1984. In 1997 it was incorporated by Royal Charter and achieved full college status as a college for women over the age of 21 who were matriculated into the University as full-time undergraduates or as part-time or full-time postgraduates. The College is an autonomous, self-governing community of scholars and one of the 31 colleges within the University of Cambridge. It is a registered charity (number 1137875) regulated by the Charity Commission and its registered office is Lucy Cavendish College, Lady Margaret Road, Cambridge CB3 0BU. In conjunction with the University, the College provides an education of the highest quality, with appropriate support for students in personal or financial need.

The College’s campus is situated just north-west of central Cambridge bounded by Madingley Road and Lady Margaret Road. This site has accommodation for 142 students including 72 housed in our eco-friendly and accessible New Building built in 2022 to Passivhaus standards and which includes social spaces and a large café/bar. Elsewhere the College has 64 rooms at its student centre at 100 Histon Road which was opened in 2014 and 33 rooms in nearby residential properties . The College also rents a further 148 rooms from St John’s College at a brand-new development of town houses at Hinsley Lane and 355 rooms from a private student accommodation provider, Collegiate, at its Castle Street building – a short walk from the College’s main site. In total the College currently has accommodation for 742 students.

Aims and Objectives of the College

The principal objects of the College, as set out in its Charter, are:

The College delivers these objectives by provision of the following:

The College advances research through:

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Public benefit

The Trustees of the College have considered the Charity Commission’s guidance on the operation of public benefit under the Charities Acts 2011 and 2022 and consider that the requirements have been met under the Charity’s objects and activities. A full statement of the public benefit provided by the College has been lodged with the Charity Commission.

In summary, the College provides, in conjunction with the University of Cambridge, an education which is recognised internationally as being of the highest standard for over 1,000 students. This education develops students academically, supports their career ambitions and promotes their leadership skills. On graduation from the College, they are enabled to play enhanced and effective executive roles for the benefit of society around the world. This world-class education is provided to students who have the highest academic potential whatever their financial means or religious, racial, political or social background.

In 2022, Lucy Cavendish College became the first Cambridge College to admit over 90% of UK undergraduate students from state schools, welcoming the most socioeconomically diverse cohort in the University’s history. Underpinning this achievement is our wholly on-line Academic Attainment Programme (AAP). This outreach programme is free to the student and provides around 1,000 high-achieving state school students with comprehensive supplementary academic support tailored to their stage in the curriculum, giving them the best chance of achieving their full potential. The programme has been very successful with 9 in 10 receiving offers to study at Russell Group universities, and over the past two years participants have almost doubled their chances of being offered a place at either Oxford or Cambridge. Following the 2022/23 programme, 90% of participants felt that the programme had provided them with the resources and support to achieve the grades they wanted at A-Level (Scottish Highers/IB), and 98% of participants felt confident that they knew how to make a competitive application to Cambridge and other top universities.

The 442 partner schools attest to their critical need for supplementary academic support designed specifically for their high-potential students. The AAP responds directly to this need, successfully raising participants’ academic attainment and their intellectual confidence. In 2024, the Welsh government has begun embedding the AAP in their national “Seren” programme for their highest academic achievers.

Additionally, the College participates in the University’s Foundation Year Programme and welcomes up to five new students each academic year.

The resident members of the College, both students and academic staff, are the primary beneficiaries and are directly engaged in education, learning and/or research. The President and Fellows of the College receive a number of benefits as beneficiaries comprising small research, book and travel grants etc. These benefits are provided with the intention 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 objectively reasonable when measured against the academic benefits made available to other beneficiaries of the College.

Beneficiaries also include students and academic staff from other colleges in Cambridge and from Cambridge University more widely together with visiting academic staff and students from other higher education institutions.

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In addition, the wider public has access to the College through several series of events, talks and seminars, many now held on-line and disseminated further through blogs on the main College website and via social media channels.

Dr Chris McDonald has been leveraging cutting-edge technology to enhance education and research at the College under the banner of the Meta Lab. Making the Invisible Visible uses Artificial Intelligence (AI) and Virtual Reality (VR) to translate and visualize emissions data allowing students in virtual classrooms, to 'climb' the carbon emissions of common goods. This project received the University’s Innovation Award. The VR Public Speaking Platform can recreate any venue in VR with photo-realism, allowing students to build skills and resilience by practicing public speaking in a realistic but virtual environment

The College hosts 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. 2024 was the 14[th] year of the Prize and once again there was an exceptional number of entries, totaling over 600. The shortlisted works spanned a variety of genres and showcase the remarkable literary talent of women writers across the UK and Ireland. After a spirited discussion, the judging panel awarded the top prize to Matilda Battersby’s Forced Perspective , “a whip-smart, unsettling, compulsive read that evoked the creative spirit very well indeed.” We are grateful to the generous support of our long-term sponsor PFD as they come to the end of their sponsorship term and we welcome our new prize sponsor, literary agent WME. This prize sits alongside a number of student writing prizes and initiatives under the umbrella of the College’s Writing Centre and the exceptional guidance and support of its Royal Literary Fund Fellow who in 2023/24 was the acclaimed writer and journalist Melissa Benn.

The College participates from time to time in public schemes such as Open Cambridge and the National Open Gardens scheme.

Scope of the financial statements

The consolidated 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 format of the Recommended Cambridge College Accounts (RCCA) which complies with the 2019 Higher Education SORP (Statement of Recommended Practice: Accounting for Further and Higher Education). This SORP reflects the changes to UK Generally Accepted Accounting Practice (GAAP) following the issue of the revised Financial Reporting Standard (FRS) 102 which came into effect for financial years beginning on or after 1 January 2019

The commentary that follows is intended to give the readers of the financial statements an overview of the finances and operations of the College.

Operational Context

Implementing the College’s expansion and development

The College has continued to develop and implement its plans following its decision to become a standard age, mixed college from October 2021. The growth in student numbers over the last six years has been on plan reflecting the delivery of its mission to provide significantly more opportunities at undergraduate level for talented students from groups who are traditionally under-represented at Cambridge and at postgraduate level for those whose advanced learning and research address key 21st century problems as set out in the United Nations Sustainable Development Goals. As at September 2024 the total number of

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students by headcount is 1,143 and the full-time equivalent student number now stands at 939 of which 51% are postgraduates and 49% undergraduates.

The College’s mission continues to gain traction with initial estimations of direct undergraduate applicants to the College up by over 20% on last year - a record for the College - and pleasingly, early indications are that we have received a high number of applications from students who have previously been enrolled on our flagship outreach initiative: the Academic Attainment Programme (AAP).

Of the current intake of UK undergraduate students, 93.3% are from maintained sector schools. Other headline figures from that cohort include:

All these statistics are amongst the highest across the University and reinforce the claim that the College is the most diverse and inclusive college across Cambridge. The slightly fewer students from IMD-flagged neighbourhoods and slightly fewer of non-white ethnicity is because this year we have sought to increase the regional diversity of our UK intake in support of the University’s new priority. This has been relatively successful; 11% of our UK students are now from the North West, and once again we have all UK regions represented in our intake.

The College owns 235 student bedrooms and rents a further 507 rooms (from both other colleges and the commercial sector) making a total availability of 742 rooms. Not all our full-time students require accommodation at the College, and we believe that current availability is in line with our requirements. However, as the majority of our rooms are rented to us, we lack overall control and also are subject to increases in rental costs which have been significant in recent years. We have too great a proportion of our estate controlled by third parties given our student population and we are actively taking steps to address this imbalance.

The 142 rooms at our Lady Margaret Road site cater for our first-year undergraduates given its outstanding central location whilst our other undergraduates are housed in accommodation nearby. Our postgraduates are housed principally in purpose-built student accommodation near the College.

The growth in student numbers and the associated growth in our portfolio of available accommodation have necessitated the development of a financial model to assess the likely financial outcomes of different scenarios and sensitivities including a range of downside risks. This is updated regularly to reflect actual financial outcomes. The model shows that the College will continue to achieve financial sustainability over the period (c30 years) covered by the model.

Summary Financial Results

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The following section of this Report details the main features of the Financial Results.

The financial picture in the last year has been positive with income rising in line with planned increases in student numbers, bringing further volume increases in fees, rents and charges. Our conference income in the year to 30 June 2024 exceeded pre-Covid levels demonstrating the full recovery of this income stream. Once again, thanks to the hard work of our Development Team and the wonderful generosity of our donors, we have had another very good year for donations. One notable increase in revenue came from higher levels of bank interest following increases in rates in the aftermath of the “mini budget” in September 2022. Despite the continuing impact of global geopolitical events, the gain on our investments in the year was £2.043m (22/23 £1.111m) and the value of our investment portfolio at the year-end was £20.7m, up from £18.7m in June 2023.

Once again, the College benefited from a significant grant from the Colleges’ Fund Committee of £1.246m (22/23 £1.147m). However, this year the terms of the grant were that it should be allocated fully to the College’s endowment fund as opposed to being available to support operational expenditure, and this is likely to be the approach for future years.

The total surplus (increase in consolidated net assets) of the College for the year was £6.6m (22/23: £3.6m), comprising an unrestricted surplus of £1.755m (22/23 surplus of £2.082m); a restricted surplus of £1.905m (22/23 surplus of £0.769m); and a surplus of endowment income of £2.919m (22/23 surplus of £0.700m). In addition to the commentary above the increase in the unrestricted surplus was significantly enhanced by the elimination of the £932k pension provision for the Universities Superannuation Scheme.

Funding

Total income before gains on investments and on pension schemes was £16.8m (22/23: £13.2m). The College’s main sources of income are accommodation, catering & conferences £6.2m (22/23: £4.8m) academic fees and charges £5.6m (22/23: £4.6m), and donations & endowments of £3.9m (22/23: £3.1m)

Income 2023/24 2023/24 2022/23 2022/23 2021/22 2021/22
£’000 % £’000 % £’000 %
Students: college fees 5,168 31% 4,109 31% 2,912 25%
3%
Cambridge Bursaries 432 3% 465 4% 383
Accommodation &
catering		 5,355 32% 4,405 33% 3,100 26%
Conference
accommodation &
catering		 807 5% 434 3% 90 1%
Investment income 411 2% 297 2% 385 3%
Donations and
endowments		 3,893 23% 3,127 24% 4,781 40%
Other income 755 4% 357 3% 164 1%
Total 16,821 100% 13,194 100% 11,815 100%

Expenditure

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Total expenditure was £12.3m (22/23: £10.7m), comprising staff costs £3.8m (22/23: £3.9m), other operating expenditure £7.7m (22/23: £6.0m) and the balance being depreciation of £0.8m (22/23: £0.8m). This expenditure is primarily allocated to Education £5.8m (22/23: £4.8m), and Accommodation, catering and conferences £7.0m (22/23: £5.6m). Total expenditure was reduced in the year by a £932k credit following a revaluation of the Universities Superannuation Scheme and the reduction in associated provisions. In 2022/23 there was a charge of £56k

At 30 June 2024, the value of the endowment was £16.6m (22/23: £13.7m), while the College’s overall investments totaled £20.7m (22/23: £18.7m), mainly invested in the College’s amalgamated investment portfolio. Overall consolidated net assets were £56.9m (22/23: £50.3m).

As the full costs of education are not met by Academic Fees and Charges, donations and the return on the endowment are critical elements to bridge this gap in all Cambridge colleges. However, colleges differ enormously in the size of their endowment and hence 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 with one of the smallest endowments, Lucy Cavendish College is regularly a beneficiary of this scheme and in 2023/24 received £1.2m by way of a grant and this is included in donations and endowment income above (£1.1m in 22/23).

Achievements and performance

Academic and College Community

Many of our College Fellows achieved noteworthy success during the year. Brief edited highlights are set out below:-

Dr Jurgen Becque (Engineering) was promoted to University Associate Professorship, while Dr Karen Ottewell has been promoted to a Professorship in the Language Centre.

Prof Ruth Cameron is part of a consortium awarded a £1.7m grant for research into knee replacement. She was also elected as a fellow of the Royal Academy of Engineering for her outstanding contributions to the field.

Dr Liam Saddington received funding for a joint project to develop a "Climate Action Toolkit: Primary school resource pack" and was awarded a Royal Geographical Society Innovative Teaching Grant. He also published two papers on British foreign policy in the Pacific and the implications of immobility due to climate change.

Dr Rihab Khalid was offered a role as a gender and climate consultant on an international project led by the United Nations Development Programme in Asia and the Pacific.

Dr Suhail Dhawan received an ERC starting grant to continue working on next Generation Supernova Cosmology.

Christopher Fowell was made an affiliated Assistant Professor within the Department of Surgery and appointed as a Deputy Director of the East Anglian Foundation School.

Dr Deborah Talmi gained the status of ‘Senior Fellow of the HEA’ (Higher Education Academy).

Rev’d Canon Adrian Daffern was invested with the King’s Coronation Medal for his involvement with the Coronation ceremony.

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We congratulate all these Fellows and the many others who won competitive grants for their research, established research, networks or international research projects, and who published books or articles in prestigious journals over the course of the year,

Admissions, Widening Participation and Diversity

The College enjoyed a very successful undergraduate confirmation period admitting 132 new students for 24/25, including three on the Foundation Year. In addition, there will be eight new graduate medicine students. Our 40 new international undergraduates come from 18 different countries, including Belgium, Costa Rica, Korea, Libya, Russia and Serbia. On average our undergraduate intake achieved 2.1 As in arts, humanities and social sciences subjects, and 3.3 As in sciences and mathematics.

Our UK intake was 93.3% from the maintained sector, with high proportions of students (by Cambridge standards) from underrepresented, disadvantaged, historically excluded or non-traditional backgrounds. This is the third year in a row that we have been over 90% entry from the maintained sector, and we remain the only standard-age college at Cambridge for whom this is true. We continue to have the most diverse, inclusive and representative student population within the Collegiate University.

At time of writing, we have confirmed 315 full-time postgraduate students, and 69 part-time. This puts us at 384 new students overall, which is in line with last year. However, there are still a number of offers outstanding, including Lent and Easter Term PhD starters and therefore this number is likely to grow. As is usual for Lucy Cavendish, over seventy percent of our confirmed postgraduate students are overseas fee status, and the vast majority of full-time students (90.4%) are on one-year master’s courses. Our postgraduate intake is once again internationally diverse, with over 65 countries represented.

The College’s pioneering flagship outreach programme, (Academic Attainment Programme) has an offer rate of greater than 95% at Russell Group universities and 40% at Oxbridge with an acceptance rate of greater than 75% at Russell Group universities and 38% at Oxbridge. The programme has been demonstrated to make a statistically significant difference to student outcomes when applying to Higher Education institutions. Following this success it has been expanded to a two-year programme with over 1,000 participants per annum.

Student Support

It is not sufficient merely to seek, attract and admit talented students from under-represented 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 gap between the outcomes on these measures between those from non-traditional backgrounds and their more socially and economically privileged peers, especially at Cambridge. It is for this reason that the College invests heavily in its three principal student support programmes: Academic Skills, Pastoral Support, and Careers and Enterprise.

Developments in the Academic Skills Programme have included a wholesale move for the forthcoming year to a more intensive, 1:1 model of student support, with additional skills tutors being recruited to offer specialist support in key areas. During the year, the Pastoral Team undertook a full review of its tutor and tutorial framework recommending significant changes to the manner in which this provision is being delivered in 2024/25. The principal changes relate to the greater emphasis on ensuring new students at both undergraduate and postgraduate levels receive tailored and enhanced support focused on providing these cohorts with the information and confidence to be better equipped to manage the academic and nonacademic challenges of their student life at Cambridge. Careers and Enterprise initiatives include the

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development of the Lucy Cavendish Future Global Leaders Programme for graduate students about to embark on a master’s degree at Cambridge. This programme addresses the growing demand to develop a pool of skilled, ethical leaders to navigate today's complex global landscape and to ensure a sustainable world. It is more than an educational initiative: it is a commitment to developing the advanced knowledge and skills of those who will shape the future, creating positive, lasting change. Our first cohort entered the College in September 2024.

In order to assist undergraduates entitled to student support, the College provides, through a scheme operated in common with the University and other Colleges, bursaries (the Cambridge Bursary) for those with limited financial means. Students over 25 years of age at the start of their course are automatically considered for an enhanced award as are students who were in receipt of Free School Meals. In addition, the College actively provides other awards and bursaries to its undergraduate and postgraduate students of £596k in 2023/24, compared with £397k in 2022/23. We are grateful to our donors who regularly contribute to these scholarship and hardship funds.

Fundraising activities

The College is registered with the Fundraising Regulator. It does not use external professional fundraisers or commercial participators and carries out fundraising activities, primarily through its Development Office, in collaboration with the offices of Cambridge University Development and Alumni Relations and Cambridge in America as appropriate. In addition to seeking financial and other support for the College, the Development Office is also responsible for broader alumni relations.

The Lucy Cavendish Foundation Board in the UK and a North American sub-committee, provide strategic advice and support on major fundraising initiatives as prioritised and agreed by the Governing Body. All members are volunteers. The Board is focused on potential high net worth donors with the capacity to make substantial or transformational gifts to the College.

The three major priorities are: augmenting the endowment of the College; gifts and donations to fund buildings and facilities with particular emphases on student accommodation and college teaching spaces ; and scholarships, for both UK and international students from low-income backgrounds who wish to study programmes focused on the United Nations Sustainable Development Goals.

Methods for soliciting gifts include face-to-face meetings (including via Zoom), the promotion of legacy giving, direct mailings, giving through social media in the form of ‘Giving Week’ community appeals, typically every 18 months and opportunities for online giving via the website. A community appeal (The Festival of Giving) took place during the financial year and raised £135k (22/23 there was no appeal). The College also makes 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 purposes. No mass solicitation takes place without prior notification and opportunities to opt out easily feature prominently in forms of communication. Donor segmentation (categorising donors into groups based on shared demographic characteristics and previous engagement) is performed to ensure targeted and appropriate fundraising communications and these do not exceed four requests per year. Due consideration is given to whether potential donors might be considered vulnerable and if so, they are removed from any form of solicitation.

There have been no formal complaints made about fundraising during the 2023-24 academic year, nor in the previous year.

Financial Review

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Income

Further detail regarding the various sources of income is given below:

Academic Fees and Charges - £5.600m (£4.573m) 22% increase

The College charges:

The College receives a proportion of the fees charged by the University to postgraduate students based on a full time equivalent per capita allocation.

Overall student numbers in the College rose again significantly during the year and total fee income also rose, though the amount received was a function of the students mix. In 2023/24, including visiting and Foundation Year students, there were 429 (22/23: 358) undergraduates and 544 (22/23: 433) fee-paying postgraduates, of whom 134 (22/23: 123) were part time. A further 57 (22/23: 54) postgraduate students were exempt from paying fees.

Also included under this heading is income received relating to the Cambridge Bursary Scheme. The amount received £432k (22/23 £465k) varies according to the number of students eligible to receive it. This income is offset by expenditure on the scheme.

Accommodation, catering and conference income - £6.162m (£4.840m) 27% increase

This heading covers income received from students and from conference guests.

The College charges accommodation, meal and service charges at reasonable rates to its students. Income related to these areas increased by 22% due to greater student numbers and additional accommodation provided.

The income derived from conferences has historically been critical for the College’s finances and significant efforts are made to fill rooms and provide a good service to guests so that the College’s ongoing costs are covered, particularly during vacation periods. Income received from conference accommodation and catering charges was £807k compared with £434k in 2022/23. Revenues from this important channel were impacted significantly by Covid restrictions but it is pleasing to see that they are now exceeding pre Covid levels (19/20 £650k -the first year to be affected by Covid and 18/19 £726k).

Investment income - £411k (£297k) 38% increase; and endowment return transferred £542k (£498k) 9% increase.

Investment income represents dividend and interest receipts.

The Governing Body Fellows are the Trustees of the College, governed under the Trustee Act 2000. Their investment powers are defined in Statute 38 of the College’s Statutes and they have overall responsibility over the College’s investments. Governing Body has responsibility for approving investment objectives, agreeing risk and return targets, performance benchmarks and the investment manager structure. The Governing Body delegates the detailed aspects of the oversight of the investment arrangements to the

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Finance & 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 value of the assets whilst generating a stable and sustainable return to help fund the College’s operations each year. To this end, a diversified portfolio with a strategic asset allocation including most or all of UK and Overseas Equities, Bonds, Cash, Alternative Investments and Commercial Property is maintained with due regard for socially responsible investments consistent with the College’s charitable status and its ethos.

The College has for some years adopted a total return approach which takes account of capital gains and losses on investment as well as income. Over the course of the year the College changed its investment managers from Evelyn Partners to a combination of Sarasin & Partners and Cambridge University Investment Fund (CUEF).

The total return target for Sarasin and Partners is the Consumer Price Index (CPI) rate of inflation plus 4%. Sarasin and Partners assumed responsibility for the majority of our investments on 8[th] February 2024 and total return over that period was 6%. Over this period CPI + 4% was 5.9%. The College invested £5m with CUEF on 21[st] December 2023 and this generated a total return of 4% to 30[th] June 2024. CUEF target a return of CPI plus 5% which over the same period was 6.9%. Over the course of the financial year, CUEF delivered a total return of 9.1% against the benchmark of 7.1%.

Within the College’s Total Return Spending Rule, the aim is to derive a sufficient and regular return to offset the shortfall in funding for the College’s core educational activities; over recent years the Governing Body has approved a transfer of 3% per annum as an appropriate ‘spending rate’ to preserve capital in the endowment which this year equated to £542k (£498k).

Donations and new endowments - £3.893m (£3.127m) 24% increase

During the 2023-24 period, 437 donors (a rise of 71% from 256 in 2022/23) generously contributed through donations and pledges, including support from the Lucy Gives community appeal in October 2023. This comprised 236 alumni (representing 7.6% of contactable alumni), 182 non-alumni, and 19 organisations. The College achieved a return of £12.15 for every £1 spent on fundraising. Regular gifts via Direct Debit, Standing Order, or Cambridge in America contributions were received from 161 donors, a notable increase from 98 in 2022/23.

Legacy Giving and Bequests

The College's Anna Bidder Society, which recognises legacy donors, welcomed four new members, bringing its total membership to 115. The approximate value of known legacies is currently £4.179m.

Major Gifts

Significant gifts were received to support various College initiatives:

Strategic Programme Support

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Philanthropic contributions also advanced several strategic initiatives:

Additional Notable Contributions

These donations significantly enhanced the College's ability to support scholarships, academic posts, and transformative student programmes. We remain incredibly grateful for the generosity of our community and partners, who play a vital role in advancing the College’s mission and values.

Other income - £755k (£357k) 111% increase

UK interest rates rose to 5.25% from 5% in August 2023 and despite speculation that rates would fall they remained at this level until August 24 falling to 5% initially and subsequently to 4.75%. Bank interest accounted for £564k, 75% of Other income. The balance was made up of £115k facilities charges and a variety of smaller receipts from photocopying, merchandise and other fees.

Expenditure

Total Expenditure of £12.286m (£10.744m) increased by 14%.

Education expenditure - £5.812m (£4.787m) 21% increase

Education costs increased as the numbers of students in the College significantly increased compared to the previous year. In common with all Cambridge colleges there is a shortfall on the core education accounts (fee income set against educational expenditure) of £212k compared with £214k in 2023/24

Accommodation, catering & conference costs - £7.018m (£5.556m) 26% increase

There have been increases across all categories under this heading. The college rented rooms from St John’s College, St Edmund’s College and Emmanuel College over the year and also from the commercial provider Collegiate at Castle Street. In most instances the rental agreements are for 52 weeks meaning that the College must pay rent for the full year even when the student licenses are for shorter periods or when the rooms are not let.

Although the College’s combined Accommodation, catering and conferences income has increased as previously detailed (£6.162m compared with £4.840m in 2022/23) this has not covered the full costs of providing accommodation and catering. These expenditure figures represent a full cost allocation including all overheads. This overall deficit for the year on Accommodation, catering and conferences was £856k compared with an overall deficit of £716k in 22/23. To put this in perspective, this represents a subsidy for each student of over £800 per year.

Ongoing efficiencies and increased rent charges, progressively bringing revenues closer to fully allocated costs, are a key part of ensuring the College’s financial sustainability in the medium term. Funds collected contribute to the cost of meals within the College and support further investment in the College kitchens.

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Usually, the College seeks to balance the need to offer affordable rents and charges for students whilst at the same time ensuring that the College has the necessary funds to maintain its student accommodation and catering facilities, undertaking necessary refurbishment and maintenance. This balance has become even more difficult in recent years as cost-of-living pressures have impacted students and the College itself has been subject to increased costs through higher inflation.

Balance Sheet

The Balance Sheet shows a Net Current Asset position at the year-end of £8.104m (22/23 £4.297m).

Non-current assets

Non-current assets total £66.224m (22/23 £64.396m). These include Tangible Assets of £45.509m (22/23 £45.694m) including properties, furnishings, I.T. and other equipment. Investments of £20.714m (22/23 £18.702m) make up the balance of the non-current assets. This year the total capital investment in new Tangible Assets was £0.657m (22/23 £1.716m) whilst after disposals and depreciation there was an overall decrease of £0.184m (22/23 increase of £0.906m) The capital increase primarily relates to the consolidated cost of freehold buildings (£0.339m) particularly the new gardeners’ compound and library books (£0.330m). Investments have increased in overall values from £18.702m in 22/23 to £20.714m at 30 June 2024. This is mainly accounted for by the realised and unrealised gains on investments £2.043m.

At 30 June 2024, the College had Creditors falling due after more than one year of £17.340m (22/23 £17.340m) relating to two Private Placement arrangements; £6.044m used to build the Histon Road accommodation and £11.296m loan from the University used to fund the New Building on the College’s main site.

Reserves

The consolidated reserves stand at £56.914m up from £50.335m in the 2022/23 accounts.

All income and expenditure, however derived, goes through the Statement of Comprehensive Income and Expenditure so the total movement on reserves is equivalent to the comprehensive income (or expenditure) in the year. Thus, the consolidated comprehensive income of £6.579m (21/22 comprehensive income of £3.551k) is also the increase in consolidated net assets and in consolidated reserves.

Of the total reserves at 30 June 2024, 60% is held in unrestricted funds, 11% in restricted (only to be used for specific purposes according to donors’ wishes) and 29% in endowed funds (capital to be retained and income only to be spent). This compares with 64%, 9% and 27% in the comparative figures at 30 June 2023.

During 2023/24 consolidated unrestricted funds increased from £32.279m to £34.038m (College unrestricted funds increased from £32.526m to £34.291m) whilst total endowment funds increased from £13.720m to £16.639m. Restricted reserves increased from £4.336m to £6.237m.

Reserves policy.

A high level of capital is required for the College to fulfil its role within the University and thrive over the long term. Capital is needed to build and replace operational buildings and to provide income to meet operational expenses, of which the most significant single element is salaries for academic and non-academic staff. All Cambridge colleges take an intergenerational equity view of their reserves and Lucy Cavendish, too, seeks to maintain an equitable balance between the needs of its present members and those of future generations and must therefore seek to maintain its endowment reserves over the longer term.

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The College relies on the total return from its investments both to fund the difference between its annual expenditure and operating income and to maintain the real value of its assets and future income. The College seeks to maintain its reserves at a level that generates a total return sufficient to meet these objectives over the long term. The Reserves Policy does not preclude the Governing Body authorising a reduction in the reserves if it wishes to implement specific initiatives that are likely to accelerate the fulfilment of the College’s strategic objectives, but it is worth noting that the total value of Tangible Assets at £45.509m exceeds the value of the consolidated unrestricted funds at £34.038m so there are essentially no quickly available ‘free’ reserves.

In October 2020, as a further prudent measure, the Governing Body approved an addition to the Reserves Policy to establish the equivalent of a ‘designated reserve’ designed to ensure 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 2043/44 and 2053/54. Previously, the assumption had been that they would have to be re-financed. Every five years a review is to be carried out of the monies put aside for investment in the designated reserve and the allocations increased for the next quinquennial period as needed and depending on the proximity of the repayment date.

Cashflow

Operating cash levels are generally held at low levels and historically cashflow has required careful management. However, cashflow has continued to improve over recent years with increased income, tighter credit control and higher interest rates. This is predicted to continue as an outcome in the financial modelling. In the current year, the net cashflow has been supported by the late receipt of the Colleges’ Fund grant (£1.246m) and by restricted fund donations not transferred to investments at the year-end (£1.163m). Net cash inflow from operating activities in 2023/24 was positive at £6.330m (22/23 £4.720m). Cash totaling £2.380m (22/23 £2.087m) was used in investing and financing activities such as capital expenditure, purchase of investments and loan receipts/payments including paying interest on loans. The overall position was an inflow of £3.951m (2022/23 £2.633m).

Staff costs and pensions

The College makes pension fund contributions on behalf of its employees to Universities Superannuation Scheme (USS), with some contributions towards the defined benefit part of the scheme and some towards the defined contribution part of the scheme and to a defined contribution scheme with NOW pensions. The College previously contributed to another defined benefit scheme, the Cambridge Colleges Federated Pension Scheme but it no longer has any active members in this scheme. However, the College continues to make payments to this scheme to contribute to the deficit which it has accrued. Total staff costs were £3.753m in 23/24 compared with £3.891m in 22/23. Total pension costs in 23/24 were a credit of £562k compared with a charge of £441k in 22/23. The credit arose from a release of USS deficit recovery provision of £932k in the year following a revaluation of that scheme. Total average staff (academic and nonacademic) numbers rose from 113 to 131 (FTE 73.05 to 82.35), reflecting continued investment in new posts as student numbers have increased. There was a general pay increase of 3% for most employees (22/23 5%). These figures also include the costs of teaching provided by those not directly employed by the College and these costs rose from £299k to £365k as was expected with 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, Supervisors, Directors of Studies, Tutors and senior Administrative Officers (all of whom, along with the President are charity trustees as members of the Governing Body).The

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employment of the President and Fellows is undertaken with the intention of furthering the College’s objectives and their employment directly contributes to the fulfilment of those aims. The private benefit accruing to the President and Fellows through salaries, stipends and employment-related benefits is objectively reasonable, measured against academic stipends generally, and indeed is generally modest when compared with those of other colleges in Cambridge. Without the employment of Fellows, the College could not fulfil its charitable aims as a College within the University of Cambridge. Including the President, the total number of Fellows in the year was 50 (22/23 51). The College also employs a further 89 (22/23 76) members of staff and engages other casual staff as necessary to provide the professional and service support necessary to run the College. Salaries and remuneration are reviewed annually by the Salaries & Remuneration Committee, the majority of whose members are Fellows in the College who do not receive a stipend together with external members who are completely independent of the College.

Maintenance of buildings and capital expenditure

Total capital expenditure during the year was £0.657m (22/23 £1.716m). £0.339m (22/23 £1.486m) of this related to the consolidated cost of freehold buildings and particularly the creation of a Gardiners’ compound Other expenditure included general refurbishment in accordance with a programme of planned maintenance, the purchase of Library books, planned upgrades for IT systems, equipment and infrastructure.

Risk management

The Governing Body is responsible for identifying and managing the major risks facing the College. Risk management is considered in every aspect of the College’s work and the College recognises that the effective management of risk, while ensuring our organisational objectives are achieved, is key. The College Council, Governing Body and Audit Committee regularly review the risk register. They review risk in its broadest sense and consider anything that might alter or undermine the capacity of the College to fulfil its objectives from both a strategic and operational perspective. Our wider assurance framework includes policies and procedures for anti-corruption and bribery, health and safety, and management of complaints and grievances. These ensure that, where incidents give rise to risks, they are identified, acted on swiftly and reported according to our regulatory responsibilities.

The key principles to support the delivery of our risk management approach are outlined below:

The Audit Committee has delegated authority to act on behalf of the Governing Body in relation to the matters set out in its terms of reference, as well as providing advice, guidance and insight on issues within its scope. The Committee is chaired by a Fellow and has external members to provide relevant expertise. The Committee has a specific duty to keep under review the effectiveness of the College’s risk management, control and governance arrangements and receives regular deep dives relating to the College’s principal risks

Principal risks and uncertainties

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The College’s principal risks and uncertainties are set out in the College’s Risk Register which is updated regularly and which are summarised below:-

Financial Resources

Financial stability is a significant concern for all higher education institutions and the College is dependent upon funding from various sources, including government funding, tuition, alumni and general philanthropy, and endowment returns. Inflation, interest rate growth, and economic instability can exacerbate these financial challenges and in recent years have been significant factors.

Cost of living pressures continue to impact our students and therefore the College. Despite the continuing geopolitical difficulties in the Ukraine and the Middle East, and electoral changes across the world, the economic indicators such as UK inflation (CPI) have reduced over the year from 6.8% in July 2023 to 2.2% in July 2024. Interest rates remain high at 4.75% but these have also been on a slow downward trajectory. This relative stability in a time of considerable uncertainty is welcome but its fragility suggests that the cost of living for the College, its staff and students is likely to remain a significant factor for the foreseeable future.

Availability of Quality and Affordable Accommodation

A key component of cost of living is the availability of quality but affordable student accommodation. This is a critical factor influencing students' choices and overall satisfaction. While rent and proximity to services are primary considerations, safety and risk perception also play significant roles. In recent years, the College has made progress in growing its estate and improving its quality. It is currently actively engaged in identifying further opportunities that would reduce its reliance on renting student property from other colleges and the commercial market in Cambridge, which impact on the affordability of the accommodation available. The College recognises that accommodation that meets students' expectations and safety standards is essential for their well-being and academic success.

Fundraising Strategy

Fundraising is vital for the College to support its operations and growth. The College has a Fundraising Strategy which is focused on its relative under-endowment; a significant ongoing risk. The return on endowment/investments is critical to all Cambridge colleges in allowing them to support their wider operations and activities and to bridge the gap between fee income received and the full costs of education. Critically, for this College a larger endowment with a greater return would provide regular ongoing funds to offer greater support to our students in meeting their living costs – in practice, many other colleges are able to subsidise these to an extent that we simply cannot afford. This is particularly challenging given the focus that the College has on recruiting those traditionally under-represented in Cambridge as many students do not have ready access to other funds. A larger endowment would also enable us to undertake more investments in infrastructure and develop new services to keep the College moving forward in the longer term as it would increase our borrowing capacity.

In order to continue to meet our aspiration of ensuring that talented students from non-traditional backgrounds can come to the College and complete their studies at Cambridge irrespective of means, there remains a great need for student bursaries and student support funds. As our student body changes with a larger number coming from groups that have been traditionally under-represented in Cambridge, we can see that there is increased pressure to offer more support even beyond the current Cambridge Bursary scheme. In the meantime, the support that we have received from donors for student bursaries has again been particularly valuable and we, and our students, are grateful for such generosity.

Student Academic and Career Progression

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Students' academic success and career progression are influenced by a range of factors, including personal adjustment, mentorship, and extracurricular activities. Challenges such as balancing studies with other obligations, and mental health issues can hinder students' academic performance and career advancement. Providing comprehensive support and resources to our students is essential to help them achieve their potential.

Inclusivity and Wellbeing

Promoting inclusivity and student well-being is crucial for creating a supportive and engaging learning environment. Exclusion and discrimination can negatively impact students' academic performance, selfesteem, and mental health. The College invests what it can afford in culturally competent services, and fostering a culture of inclusivity to support all students.

Cyber Security and IT Resources

Cybersecurity is a growing concern for all higher education institutions. Colleges are vulnerable to various cyber threats, including phishing, ransomware, and data breaches. Whilst these threats are constantly changing and becoming more sophisticated the College endeavours to apply robust cybersecurity measures and regularly updates its IT systems to better protect sensitive information and maintain operational integrity.

Governance, Management and Regulatory Compliance

Effective governance and management are vital for making informed decisions about the College's future. Trustees understand and receive training on their roles in risk oversight and addressing the challenges set out above. Trustees also maintain oversight of legal and regulatory compliance which is critical for the College to avoid legal and financial repercussions and maintain public confidence.

Plans for the future

In order to provide the appropriate support and facilities for our current students and to safeguard the College’s future we must continue to deliver and consolidate our planned growth and invest in capital, including new technologies to achieve better productivity. Income generation is as critical as cost control. Hence growth in student numbers, continuing to charge appropriate economic rates for accommodation and other services, maximising income from our conference and other income-generating activities, ambitious fundraising to augment the endowment and to allow the College to offer increased support for our students and its other key activities and sound investment management, all have a crucial role to play in building the College’s future.

Following its recent planned growth the College is within the top 5 Cambridge colleges by student number. It now needs to continue to build an infrastructure which is consistent with its numerical growth. This requires a significant development of the College’s estate, an increased unrestricted endowment, and a permanently funded core of positions and programmes that will enable us to deliver the vision to the benefit of our students and Fellows in a compelling manner for decades to come.

Having focused to date on providing opportunities for students from marginalised and previously underrepresented backgrounds, this year our attention has moved to the careers and positions that our new alumni will hold when they graduate. Our Future Global Leaders Programme is already gaining attention from employers and fellow higher education partners across the world, and it will help address the demand for the skilled, ethical leaders of the future. Many of our groundbreaking initiatives have been funded from

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the generosity of our donors who have shared our vision, and as we move forward, we need to ensure that we continue to fund what we have already achieved alongside exciting new opportunities to further develop our students and Fellows.

We are delighted and heartened to have received such positive and significant support for our ambitious plans from so many different people and organisations once again throughout this past year. Together we are confident that we can achieve the ambitious goals we have set.

The College takes this opportunity to thank its Auditors and other professional advisers for their consistent and expert support.

President Date: 27 November 2024

Mr Tony McNiff Bursar Date: 27 November 2024

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Corporate Governance

  1. The following statement is provided by the Trustees to enable readers of the financial statements to obtain a better understanding of the arrangements in the College for the management of its resources and for audit.

  2. The College is a registered charity, registration number 1137875, and subject to regulation by the Charity Commission for England and Wales. The members of the Governing Body are the charity trustees and are responsible for ensuring compliance with charity law.

  3. The President and Fellows in Classes A, B and C constitute the Governing Body of the College. The Governing Body is constituted and regulated in accordance with the College statutes and is the body responsible for the strategic direction of the College. Members of the Governing Body are also the Trustees of the charity and are listed on page 2. Student representatives and Visiting Fellows are invited to Governing Body meetings for unreserved business and Fellows in Class D (research fellows) attend the unreserved and reserved meetings as observers. There is usually one formal Governing Body meeting per term, together with the Audit meeting during the Michaelmas Term at which the audited accounts are approved. The Governing Body also holds an Awayday each year for exploration of particular issues.

  4. Ongoing administration and management of the finances and assets of the College is carried out by the College Council which is composed ex officio of the College (see below) together with six elected GB Fellows, two student representatives and one staff representative. Council meets three times during term time and just before and after term, as necessary.

Membership of the Council during the Financial Year 2023-24:

Professor Dame Madeleine Atkins, President, ex officio

Professor Henriette Hendriks, Vice-President, ex officio

Dr Howard Nelson, Acting Vice-President, ex officio, for any absence of Prof Hendriks Mrs Lesley Thompson, Bursar, ex officio, to 30 September 2023 Mr Tony McNiff, Bursar, ex officio, from 1 September 2023

Dr Jane Greatorex, Senior Tutor, ex officio Ms Alison Vinnicombe, Secretary to the Council, ex officio Dr Patricia Alireza to 30 September 2023 Dr Renan Baker to 30 September 2023 Dr Alex Freer to 30 September 2023 Dr Mark King Ms Suzanne Tonkin Dr Franziska Strack from 1 October 2023 Dr Lin Su from 1 October 2023 Dr Chris Macdonald from 1 October 2023 Prof Marie-Claire Cordonier-Segger from 1 October 2023

  1. There are a small number of committees and working groups which report to Governing Body and/or Council, including an Audit Committee.

  2. It is the duty of the Audit Committee to keep under review the effectiveness of the College’s internal systems of financial and other controls; to advise the Trustees on the appointment of external and internal auditors; to consider reports submitted by the auditors, both external and internal, to monitor the implementation of recommendations made by the auditors; to make an annual report to the Trustees.

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  1. The principal officers of the college are:

President Professor Dame Madeleine Atkins Vice-President Professor Henriette Hendriks (Dr Howard Nelson, acting Vice-President in her absence) Senior Tutor Dr Jane Greatorex, Senior Tutor Bursar Mrs Lesley Thompson MA FCA to 30 September 2023 Mr Tony McNiff from 1 September 2023

Delegated authority is given to them during the Long Vacation between meetings of College Council.

  1. There are Registers of Interests of Trustees, the Council and Audit Committee and of the senior administrative officers. Declarations of interest are made systematically at meetings.

  2. The College’s Trustees during the year ended 30 June 2024 are set out on page 2.

  3. Statement of Internal Control

The Trustees are responsible for maintaining a sound system of internal control that supports the achievement of policy, aims and objectives while safeguarding the public and other funds and assets for which the Governing Body is responsible, in accordance with College Statutes.

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

The systems of internal control are designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically.

The Trustees are responsible for reviewing the effectiveness of the system of internal control.

The Trustees’ review of the effectiveness of the system of internal control is informed by the work of the various committees, the Bursar and other College officers who have responsibility for the development and maintenance of the internal control framework, and by comments made by the external auditors in their management letter and other reports.

Any system of financial control, however, can only provide reasonable, not absolute, assurance against material misstatement or loss.

  1. Financial management and control

The College operates a devolved budgeting system under which individual budget holders are responsible for managing income and expenditure within their own areas of operation and for bringing forward budget proposals through an annual budgeting process. Fellows, members of staff and students are encouraged to participate in the process through membership of relevant committees and working groups. The Budget is then considered by Council prior to approval by the Governing Body.

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Responsibilities of the Trustees

Responsibilities of the Trustees

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

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

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

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

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Independent Auditors’ Report to the Trustees of Lucy Cavendish College

Independent Auditors’ Report to the Trustees of Lucy Cavendish College

Opinion

We have audited the financial statements of Lucy Cavendish College (the ‘College’) and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Statement of Comprehensive Income and Expenditure, the Consolidated Statement of Changes in Reserves, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the report of the Governing Body, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify

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Independent Auditors’ Report to the Trustees of Lucy Cavendish College

such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 25, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are

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

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

We gained an understanding of the legal and regulatory framework applicable to the College and how it operates and considered the risk of the College not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements. In relation to the College this included data protection, health and safety, employment law and financial reporting.

The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified.

For the Financial Year Ending 30[th] June 2024

26

Independent Auditors’ Report to the Trustees of Lucy Cavendish College

These included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: - - - - - - - https://www.frc.org.uk/Our Work/Audit/Audit and assurance/Standards and guidance/Standards and - - - - - - - - - - guidance for auditors/Auditors responsibilities for audit/Description of auditors responsibilities for audit.aspx. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the College’s trustees, as a body, in accordance with College’s statutes, the Statutes of the University of Cambridge and part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the College’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the College and the College’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Price Bailey LLP Chartered Accountants and Statutory Auditors

Tennyson House Cambridge Business Park Cambridge CB4 0WZ

Date: 13 December 2024

Price Bailey LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

For the Financial Year Ending 30[th] June 2024

27

Statement of Principal Accounting Policies

Statement of Principal Accounting Policies

Basis of preparation

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

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

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

The functional and presentational currency of the College is GBP. The level of rounding applied is to the nearest £000.

Basis of accounting

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

Basis of consolidation

The consolidated financial statements include the financial statements of The College and its subsidiary undertakings for the year ended 30th June 2024. Details of the subsidiary undertakings included are set out in note 24. Intra-group balances are eliminated on consolidation.

The activities of student societies have not been consolidated.

Recognition of income

Academic fees

College fee income is recognised in the period for which it is received and includes all fees chargeable to students or their sponsors.

Grant income

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

Income received in advance of performance related conditions is deferred on the balance sheet and released to the Consolidated Statement of Comprehensive Income and Expenditure in line with such conditions being met.

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Statement of Principal Accounting Policies

Donations and endowments

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

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

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

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

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

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

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

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

Investment income and change in value of investment assets

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

Total return

The Governing Body has agreed that the transfer made under Total Return would equate to 3 per cent. This is in line with The College spending rule which permits the transfer of no more than 5 per cent of the closing balance of the fund. Each transfer is subject to the specific agreement of the Governing Body.

Other income

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

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Statement of Principal Accounting Policies

Cambridge Bursary Scheme

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

The net payment of £118,724 (2023: £118,724) is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows: Income (see Note 1) £464,743 (2023: £464,743) Expenditure £583,467 (2023: £583,467)

Going concern

The 30-year financial model is updated annually to reflect actual results and the next year’s budget. The model can be used to consider different scenarios which gives the Trustees confidence 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 fixed assets

a. Land and buildings

Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Certain items of fixed assets that had been revalued to fair value on or prior to the date of transition to SORP, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.

Where parts of a fixed asset have different useful lives, they are accounted for as separate items of fixed assets.

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

Freehold buildings are depreciated on a componentisation basis. Freehold land is not depreciated as it is considered to have an indefinite useful life.

Buildings under construction are valued at cost, based on the value of architects’ certificates and other direct costs incurred. They are not depreciated until they are brought into use. Borrowing costs have been capitalised on the commencement date which is when three conditions have been met a) expenditure has been incurred for the building b) borrowing costs have been incurred to support that expenditure and c) the expenditure is for activities that are necessary to prepare the building for use. Capitalisation of borrowing costs ceases when substantially all activities necessary to prepare the building for its intended use are complete.

The freehold property known as New Building, Lucy Cavendish College, CB3 0BU was valued as at 30 June 2023 by an external valuer, Gerald Eve LLP, a regulated firm of Chartered Surveyors. The valuation was prepared in accordance with the requirements of the RICS Valuation – Global Standards 2022 and the national standards and guidance set out in the UK national supplement (November 2018), the International Valuation Standards, FRS 102, ‘the Financial Reporting Standard applicable in the UK and Republic of Ireland’, and the current Statement of Recommended Practice (SORP) ‘Accounting for Further and Higher Education’. The valuations of specialized properties were derived using the Depreciated Replacement Cost (DRC) method.

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Statement of Principal Accounting Policies

The cost of additions to operational property shown in the balance sheet includes the cost of land where applicable.

b. Maintenance of premises

The cost of refurbishment is capitalised and depreciated over the expected useful economic life of the asset concerned. Refurbishments which provide significantly enhanced facilities and benefits and cost above £10,000 are capitalised and depreciated over 5 years / their useful economic life according to the asset classification.

Maintenance costs are expensed through the income and expenditure account each year and the College sets aside sums periodically to meet future maintenance costs.

c. Furniture, fittings and equipment

Furniture, fittings and equipment are capitalised and depreciated over their expected useful life as follows:

Furniture and fittings 10 years
Information Technology 3 to 7 years
Kitchen equipment 7 years
Library books 20 years
General mechanical equipment 10 years

d. Leased assets

Leases in which the College assumes substantially all the risks and rewards of ownership of the leased asset are classified as finance leases. Leased assets acquired by way of finance leases are stated at an amount equal to the lower of their fair value and the present value of the minimum lease payments at inception of the lease, less accumulated depreciation and less accumulated impairment losses. Lease payments are accounted for as described below.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Costs in respect of operating leases are charged on a straight-line basis over the lease term. Any lease premiums or incentives are spread over the minimum lease term.

e. Heritage Assets

The College does not currently hold any heritage assets.

Investments

Fixed asset investment and endowment assets are included in the balance sheet at fair value except for investments in subsidiary undertakings which are stated in the College’s balance sheet at cost and eliminated on consolidation. Investments that are not listed on a recognised stock exchange are carried at historical cost less any provision for impairment which is considered to be the market value.

Silver works of art and other assets not related to education are professionally valued as often as deemed necessary by independent professional experts.

Stock

Stocks are stated at the lower of cost and net realisable value after making provision for slow moving and obsolete items.

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Statement of Principal Accounting Policies

Provisions

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

Contingent liabilities and assets

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

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

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

Current Assets and Liabilities

Debtors: Short term debtors are measured at transaction price, less impairment

Cash and Cash Equivalents: Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Creditors: Short term creditors are measured at the transaction price

Financial instruments

The College has elected to adopt Sections 11 and 12 of FRS 102 in respect of the recognition, measurement and disclosure of financial instruments. Financial assets and liabilities are recognised when the College becomes party to the contractual provision of the instrument and they are classified according to the substance of the contractual arrangements entered into.

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

Financial assets

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

For the Financial Year Ending 30[th] June 2024

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Statement of Principal Accounting Policies

indicators of impairment at each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Comprehensive Income.

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

Other financial assets, including investments in equity instruments, which are not subsidiaries or joint ventures, are initially measured at fair value which is typically the transaction price. These assets are subsequently carried at fair value and changes in fair value at the reporting date are recognised in the Statement of Comprehensive Income. Please see note 9 where market value and cost are recorded. Where the investment in equity instruments is not publicly traded and where the fair value cannot be reliably measured, the assets are measured at cost less impairment. Investments in property or other physical assets do not constitute a financial instrument and are not included.

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

Financial Liabilities

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

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

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

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

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

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

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Statement of Principal Accounting Policies

Legacy accounting policy

For legacies, entitlement is taken as the earlier of the date of which either: the College is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the College has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the College, or the College is aware of the granting of probate and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Taxation

The College is a registered charity (number 1137875) and also a charity within the meaning of Section 467 of the Corporation Tax Act 2010. Accordingly, the College is exempt from taxation in respect of income or capital gains received within the categories covered by Sections 478 to 488 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes.

The College receives no similar exemption in respect of Value Added Tax.

Contribution under Statute G,II

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

Employment benefits

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

Reserves

Reserves are allocated between restricted and unrestricted reserves. Endowment reserves include balances which, in respect of endowment to the College, are held as permanent funds, which the College must hold in perpetuity.

Restricted reserves include balances in respect of which the donor has designated a specific purpose and therefore the College is restricted in the use of these funds.

Pension schemes

The College participates in the Universities Superannuation Scheme. The Scheme is a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee –administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The College is therefore exposed to actuarial risks associated with other institutions’ employees and is

For the Financial Year Ending 30[th] June 2024

34

Statement of Principal Accounting Policies

unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, the College therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the profit and loss account represents the contributions payable to the scheme. Since the College has entered into an agreement (the Recovery Plan), that determines how each employer within the scheme will fund the overall deficit, the College recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and therefore an expense is recognised.

The College participates in the Cambridge Colleges Federated Pension Scheme (CCFPS), a defined benefit scheme which is externally funded and until 31 March 2016 was contracted out of the State Second Pension (S2P). As CCFPS is a federated scheme and the College is able to identify its share of the underlying assets and liabilities, the College values the fund as required by Section 28 Employee Benefits of FRS 102 ‘Retirement Benefits’. As a result, the amount charged to the Statement of Comprehensive Income and Expenditure represents the amount calculated under FRS 102 guidelines.

The College operates an insured money purchase pension scheme for its staff, NOW Pension. The assets of the scheme are held separately from those of the College. The College’s contributions to the scheme amounted to £96,385 (2023: £75,177), with contributions of £17,661 (2023 £13,213), outstanding at the balance sheet date.

Critical accounting judgements

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

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

Income recognition

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

Useful lives of property, plant and equipment

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

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Statement of Principal Accounting Policies

Recoverability of debtors

The provision for doubtful debts is based on the College’s estimate of the expected recoverability of those debts. Assumptions are made based on the level of debtors which have defaulted historically, coupled with current economic knowledge. The provision is based on the current situation of the customer, the age profile of the debt and the nature of the amount due.

Retirement benefit obligations

The cost of defined benefit pension plans and other post-employment benefits are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long-term nature of these plans, such estimates are subject to significant uncertainty. Further details are given in note 15.

Management is satisfied that Universities Superannuation Scheme meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the funding plan in existence at the date of approving the accounts.

As the College was previously contractually bound to make deficit recovery payments to USS, this was recognised as a liability on the balance sheet. The College stopped making deficit recovery contributions to the scheme during the year and the scheme reported a surplus as at the year end based on the 2023 actuarial valuation. The liability has been removed from the accounts this year and the resulting impact to the accounts is disclosed on the face of the Income and Expenditure account, as well as in notes 7a, 7b and 15.

For the Financial Year Ending 30[th] June 2024

36

Consolidated Statement of Comprehsive Income and Expenditure

Consolidated Statement of Comprehensive Income and Expenditure

Year ended 30th June 2024
Income
Note
Academic fees and charges
1
Accommodation, catering and conferences
2
Investment income
3
Endowment return transferred to income and
expenditure account
3
Other Investment income
Other Income
Total income before donations and endowments
Donations
New Endowments
Grant from Colleges Fund
Other capital grants for assets
Total income
Expenditure
Education
4
Accommodation, catering and conferences
5
Other expenditure
USS Pension Valuation (Gain)/Loss
Total expenditure
6
Surplus/(deficit) before gains and losses
(Loss)/Gain on disposal of fixed assets
8
Gain on investments
9
Surplus/(deficit) for the year
Other comprehensive income
Actuarial (Loss)/gain in respect of pension
schemes
15
Total comprehensive income for the year		 2023-24

The notes on pages 41 to 65 form part of these financial statements

For the Financial Year Ending 30[th] June 2024

37

Statement of Changes in Group Reserves

Year ended 30th June 2024

Year ended 30th June 2024
Balance at 1 July 2023
Surplus from income and expenditure statement
Other comprehensive income
Release of restricted capital funds spent in the year
Balance at 30 June 2024		 Income and expenditure reserve
Total
Unrestricted
Restricted
Endowment
£000
£000
£000
£000
32,279
4,336
13,720
50,335
1,754
1,905
2,919
6,578
1
-
-
1
4
(4)
-
-
34,038
6,237
16,639
56,914
Balance at 1 July 2022
Surplus from income and expenditure statement
Other comprehensive income
Release of restricted capital funds spent in the year
Balance at 30 June 2023		 Income and expenditure reserve
Total
Unrestricted
Restricted
Endowment
£000
£000
£000
£000
30,190
3,574
13,020
46,784
2,091
769
700
3,560
(9)
-
-
(9)
7
(7)
-
-
32,279
4,336
13,720
50,335

There is no material difference between the College and the Group figures.

The notes on pages 41 to 65 form part of these financial statements

For the Financial Year Ending 30[th] June 2024

38

Consolidated and College Balance Sheet – As at 30[th] June 2024

Consolidated and College Balance Sheet – As at 30[th] June 2024

Note
Non-current Assets
Tangible Assets
8
Investments
9
Total non-current assets
Current Assets
Stock
10
Trade and other receivables
11
Cash and cash equivalents
12
Total current assets
Creditors: amounts falling due
13
within one year
Net current assets
Creditors: amounts falling due
14
after more than one year
Provisions
Pension provisions
15
Total net assets
Restricted reserves
Income and expenditure reserve -
endowment reserve
16
Income and expenditure reserve -
restricted reserve
17
Total restricted reserves
Unrestricted reserves
Income and expenditure reserve -
unrestricted
Total unrestricted reserves
Total reserves		 2024
2024
Consolidated
College
£000
£000
45,510
45,760
20,714
20,714
66,224
66,474
29
29
694
1,034
9,990
9,621
10,713
10,684
(2,609)
(2,580)
8,104
8,104
(17,340) (17,340)
(74)
(74)
56,914
57,164
16,639
16,639
6,237
6,237
22,876
22,876
34,038
34,288
34,038
34,288
56,914
57,164		 2023
2023
Consolidated
College
£000
£000
45,694
45,944
18,702
18,702
64,396
64,646
24
24
697
934
6,039
5,652
6,760
6,610
(2,463)
(2,316)
4,297
4,294
(17,340) (17,340)
(1,018)
(1,018)
50,335
50,582
13,720
13,720
4,336
4,336
18,056
18,056
32,279
32,526
32,279
32,526
50,335
50,582

The financial statements were approved by Governing Body on 27 November 2024 and signed on its behalf by:

Professor Dame Madeleine Atkins Mr Tony McNiff President Bursar

The notes on pages 41 to 65 form part of these financial statements.

For the Financial Year Ending 30[th] June 2024

39

Consolidated Statement of Cash Flows for the year ended 30 June 2024

Consolidated Statement of Cash Flows for the year ended 30 June 2024

Note
Net cash inflow from
operating activities
19
Cash flows from investing
activities
20
Cash flows from financing
activities
21
Increase/(decrease) in cash
and cash equivalents in the
year
Cash and cash equivalents at
the beginning of the year
Cash and cash equivalents at
the end of the year
12		 2024
2023
£000
£000
6,330
4,720
(1,845)
(2,574)
(534)
487
3,951
2,633
6,039
3,406
9,990
6,039

The notes on pages 41 to 65 form part of these financial statements.

For the Financial Year Ending 30[th] June 2024

40

Notes to the Accounts

Note

ote
1

2
3
3a
3b		 Academic fees & charges
Per capita fee		 2024
2023
£,000
£,000
Fee income received at the Regulated
Undergraduate rate		 £4,625 1,457 1,244
Fee income received at the Unregulated
Undergraduate rate		 £8,700, £9,360, £10,200,
£10,710, £11,100 BTh
£609		 1,104 868
Fee income received at the Graduate rate £4,767 2,565 1,963
Other fee income received 42 33
Total 5,168 4,109
Cambridge bursary income
Total
Income from accommodation, catering and conferences
Accommodation
College members
Conferences
Catering
College members
Conferences
Total
Endowment return and investment income
Analysis
Total return contribution (see note 3b)
Income from:
Quoted securities
Total
Summary of total return
Income from:
Quoted and other securities and cash
Total income
Gains/(losses) on endowment assets:
Quoted and other securities and cash
Total gains/(losses) on endowment assets
Investment management costs (see note 3c)
Total return for the year
Total return transferred to income & expenditure reserve (see note 3a)
Unapplied total return for year included within
statement of Comprehensive Income and Expenditure (see note 18)		 432
465
5,600
4,573
2024
2023
£’000
£’000
5,065
4,143
429
209
290
263
378
225
6,162
4,840
2024
2023
£’000
£’000
542
498
542
498
542
498
411
297
411
297
1,952
1,015
1,952
1,015
(90)
(95)
2,273
1,218
542
498
1,731
720

For the Financial Year Ending 30[th] June 2024

41

Notes to the Accounts

Other Investment Income

Represents bank interest received

3c
Investment management costs
Quoted securities
Total
4
Education Expenditure
Teaching
Tutorial
Admissions
Research
Scholarships & Awards
Cambridge bursary awards
Other Educational Facilities
5
Accommodation, catering and conferences expenditure
Accommodation
College members
Conferences
Catering
College members
Conferences		 2024
2023
£,000
£,000
(90)
(95)
(90)
(95)
2,017
1,684
1,491
1,055
776
666
167
174
596
464
576
583
189
161
5,812
4,787
5,769
4,749
488
242
330
304
431
261
7,018
5,556

6a Analysis of 2023/24 expenditure by activity

Education
Accommodation, catering and conferences
Other
USS pension gain		 Staff costs
(note 7)
Other Op
Exps
Depreciati
on
2024
£,000
£,000
£,000
£,000
2,518
3,094
201
5,813
1,960
4,420
638
7,018
206
179
2
387
(932)
-
(932)
3,752
7,693
841
12,286

Expenditure includes fundraising costs of £220,103 (2023 - £230,700). This expenditure excludes the costs of alumni relations

6b Analysis of 2022/23 expenditure by activity

Education
Accommodation, catering and conference
Other
USS Pension Loss		 Staff costs
(note 7)
Other Op
Exps
Depreciati
on
2023
£,000
£,000
£,000
£,000
2,060
2,535
192
4,787
1,591
3,353
612
5,556
184
159
2
345
56
-
-
56
3,891
6,047
806
10,744

For the Financial Year Ending 30[th] June 2024

42

Notes to the Accounts

6c Audit fees
Audit fees 2024 2023
Other operating expenses include: £,000 £,000
Audit fees payable to the College's external auditors 26 22
26 22

7a Staff costs

Staff costs 2023-24
Salaries
National Insurance
Pension costs
External teaching costs
Net Change in USS deficit recovery provision (see
note 15)
Subtotal of pension costs (see Note 7b)
Total
Staff costs 2022-23
Salaries
National Insurance
Pension costs
External teaching costs
Net Change in USS deficit recovery position
Subtotal of pension costs (See note 7b)
Total		 Academic
Non
Academic
2024
£,000
£,000
£,000
686
2,971
3,657
54
238
292
95
275
370
365
-
365
(336)
(596)
(932)
(249)
(321)
(570)
864
2,888
3,752
Academic
Non
Academic
2023
£,000
£,000
£,000
527
2,370
2,897
38
216
254
101
284
385
299
-
299
20
36
56
121
320
441
985
2,906
3,891

Based on the 2023 valuation of the Universities Superannuation Scheme (USS), the impact of the net change in the USS deficit recovery position is a credit of £932,217 (2023 charge : £231,425). This comprises a non-cash credit resulting from the change in assumptions, including the discount rate, of £965,833 (2023 : £10,764) and cash contributions made to reduce the deficit in the year of £33,616 (2023 : £66,870).

Included within non-academic salaries are the President, Estates Director, Registrar, Bursar, Development Director, Communications Manager and all other non-teaching staff

Academic
Non academic
Total fellows
Other non-academic teaching staff
Total fellows and staff		 Average
staff no
2024
No. of
fellows
FTE		 Average
staff no
2023
No. of
fellows
FTE
37
N/A
5
4.62		 31
N/A
6
5.62
42
4.62		 37
5.62
89
77.72		 76
67.43
131
82.34		 113
73.05

For the Financial Year Ending 30[th] June 2024

43

Notes to the Accounts

Average staff numbers do not include external teachers.

At the Balance Sheet date there were 50 (2023: 51) members of the Governing Body. During the year, the average number receiving remuneration was 42 fellows (2023: 38)

No officer or employee of the College, including the President, received emoluments of over £100k, (2023 – none)

Key Management Personnel

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College. This includes aggregated remuneration paid to key management personnel i.e., President and all stipendiary Fellows. Aggregated remuneration consists of salary, employer's national insurance, employer's pension plus any taxable benefits either paid, payable or provided, gross of any salary sacrifice arrangements.

2024 2023
£,000 £,000
Key Management
Personnel 673 603

The Trustees received no remuneration in their capacity as Trustees of the Charity (2023 - none), remuneration received for their respective roles in the charity is disclosed in note 25.

7b Pension Costs

The total pension cost included in staff costs for the year (see note 7a) was:

Employer
Contributions
2024
£000
Provisions
(note 17)
2024
£000
USS
266
(932)
CCFPS
8
(8)
Other
96
-
Total
370
(940)		 Total
2024
£000
Employer
Contributions
2023
£000
Provisions
(note 17)
2023
£000
(666)
293
56
-
8
9
96
75
-
(570)
376
65		 Total
2023
£000
349
17
75
441

For the Financial Year Ending 30[th] June 2024

44

Notes to the Accounts

8a Fixed Assets - Consolidated

COST/VALUATION
At 1st July
Additions
Disposals at cost/valuation
Revaluation during the year
Cost valuation at 30th June
DEPRECIATION
At 1st July
Provided for the year
Eliminated on disposal
Depreciation at 30th June
Net book value
At 30th June 2024
At 30th June 2023		 College
Buildings
Furniture &
Equip
IT
Kitchen
Equip
Library
Books
Mech
Equip
Total
2024
£,000
£,000
£,000
£,000
£,000
£,000
£,000
49,602
132
229
46
704
325
51,038
339
25
122
25
30
116
657
-
-
-
-
-
-
-
-
-
-
-
-
-
-
49,941
157
351
71
734
441
51,695
4,584
89
137
18
325
191
5,344
706
14
51
8
36
26
841
-
-
-
-
-
-
-
5,290
103
188
26
361
217
6,185
44,651
54
163
46
373
223
45,510
45,018
43
92
28
379
134 45,694

The insured value of Freehold Land and Buildings as at 30[th] June 2024 was £51,062,303 (2023: £46,107,711).

The consolidated cost of freehold buildings and assets in construction consists of the costs incurred by the College less the surplus recorded in the accounts of Lucy Cavendish Estates Limited, a subsidiary undertaking, and eliminated on consolidation.

For the Financial Year Ending 30[th] June 2024

45

Notes to the Accounts

8b Fixed Assets - College Only

COST/VALUATION
At 1st July
Additions
Disposals at cost/valuation
Revaluation during the year
Cost valuation at 30th June
DEPRECIATION
At 1st July
Provided for the year
Eliminated on disposal
Depreciation at 30th June
Net book value
At 30th June 2024
At 30th June 2023		 College
Buildings
& Site
Furniture
& Equip
IT
Kitchen
Equip
Library
Books
Mech
Equip
Total
2024
£,000
£,000 £,000
£,000
£,000
£,000
£,000
49,852
132
229
46
704
325
51,288
339
25
122
25
30
116
657
-
-
-
-
-
-
-
-
-
-
-
-
-
-
50,191
157
351
71
734
441
51,945
4,584
89
137
18
325
191
5,344
706
14
51
8
36
26
841
-
-
-
-
-
-
5,290
103
188
26
361
217
6,185
44,901
54
163
45
373
224
45,760
45,268
43
92
28
379
134 45,944

The insured value of Freehold Land and Buildings as at 30[th] June 2024 was £51,062,303 (2023: £46,107,711).

The consolidated cost of freehold buildings and assets in construction consists of the costs incurred by the College less the surplus recorded in the accounts of Lucy Cavendish Estates Limited, a subsidiary undertaking, and eliminated on consolidation.

For the Financial Year Ending 30[th] June 2024

46

Notes to the Accounts

9
Investments
Balance b/fwd 1st July
Gain on works of art/property
Additions
Disposals at open market value
Decrease in cash held by fund managers
Gain on revaluation
Balance c/fwd June
Represented by:
Other investments
Quoted securities - UK equities
Quoted securities – Overseas equities
Quoted securities - fixed interest
Cash in hand and at investment managers		 2024
2023
£,000
£,000
18,702
17,682
-
-
23,831
3,160
(22,235) (2,005)
(371) (1,098)
787
963
20,714
18,702
2024
2023
£,000
£,000
453
430
12,756
4,474
5,090
9,105
1,904
3,810
511
883
20,714
18,702
Historical cost of investments
Total historical cost of other investments
Total historical cost of investment portfolio
2024 2023
£,000 £,000
£357 £357
£19,442 £14,684

During the year the College changed investment fund managers as part of a process to diversify the portfolio whilst ensuring investment policies and aims were being met. This involved the sale of all previously held securities and purchase of a new portfolio.

For the Financial Year Ending 30[th] June 2024

47

Notes to the Accounts

10 Stock
Stock
11 Trade and other receivables
Conference debtors control
Intercompany – Estates
Intercompany - Trading
Members of the College
Prepayments and accrued income
Other
12 Cash
Current Accounts
13
Creditors: amounts falling due
within one year
Trade Creditors
University Fees
Accruals and deferred income
Members of the college
Intercompany - estates
Conference deposits
Other
14Creditors: amounts falling due
after more than one year
Private Placement Funding
Private Placement Funding
University loan		 Consolidated
College
2024
2024
£,000
£,000
29
29
Consolidated
College
2024
2024
£,000
£,000
58
35
-
258
-
144
48
48
535
527
53
22
694
1,034
2024
2024
£,000
£,000
9,990
9,620
9,990
9,620
2024
2024
£,000
£,000
401
401
713
713
677
651
354
356
-
-
302
303
161
156
2,608
2,580
2024
2024
£,000
£,000
3,480
3,480
2,564
2,564
11,296
11,296
17,340
17,340		 Consolidated
College
2023
2023
£,000
£,000
24
24
Consolidated
College
2023
2023
£,000
£,000
104
22
-
220
-
117
19
19
525
515
49
41
697
934
2023
2023
£,000
£,000
6,039
5,652
6,039
5,652
2023
2023
£,000
£,000
301
295
613
613
861
615
309
304
-
107
219
224
160
158
2,463
2,316
2023
2023
£,000
£,000
3,480
3,480
2,564
2,564
11,296
11,296
17,340
17,340

During 2013-14, the College borrowed from institutional investors, collectively with other Colleges, 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 approximately 4.4%. The College has agreed a financial covenant of the ratio of Borrowings to Net Assets and has been in compliance with the covenant at all times since incurring the debt. During 2020-21 the College agreed a loan facility of £16m with the University of Cambridge on which it had drawn down £11.3m at 30 June 2024. The College has been in compliance with the financial covenants associated with this loan throughout the period.

For the Financial Year Ending 30[th] June 2024

48

Notes to the Accounts

15 Pension provisions
Balance at beginning of year
Movement in year:
Contributions
Other finance (income)/cost
USS Actuarial (Loss)/gain recognised in SOCIE
CCFPS Actuarial (Loss)/gain recognised in SOCIE
Balance at end of year
CCFPS
USS
Total		 Consolidated
College
Consolidated
College
2024
£’000
2024
£’000
2023
£’000
2023
£’000
1,018
1,018
990
990
(41)
(41)
(241)
(241)
30
30
38
38
(932)
(932)
222
222
(1)
(1)
9
9
74
74
1,018
1,018
Consolidated
College
Consolidated
College
2024
£’000
2024
£’000
2023
£’000
2023
£’000
74
74
74
74
-
-
944
944
74
74
1,018
1,018

For the Financial Year Ending 30[th] June 2024

49

Notes to the Accounts

16 Endowment funds

Consolidated and College restricted net assets relating to endowments are as follows:

Balance at beginning of year:
Capital
New endowments received
Transfer to general reserves
(Decrease)/increase in interest
Investment management charges
Increase in market value of
investments
Balance at end of year
Represented by:
Capital
Analysis by type of purpose:
Fellowship funds
Scholarship funds
Prizes funds
Hardship funds
Travel grant funds
Other funds
General endowments
Total
Analysis by asset:
Investments		 Restricted
permanent
endowments
Unrestricted
permanent
endowments
2024
2023
£,000
£,000
£,000
£,000
4,230
9,490
13,720
13,020
137
1,246
1,383
26
-
17
17
5
-
(147)
(147)
(206)
-
(90)
(90)
(95)
503
1,253
1,756
970
4,870
11,769
16,639
13,720
4,870
11,769
16,639
13,720
1,385
-
1,385
1,238
2,224
-
2,224
1,862
125
-
125
106
413
-
413
368
2
-
2
2
721
-
721
654
-
11,769
11,769
9,490
4,870
11,769
16,639
13,720
4,870
11,769
16,639
13,720
4,870
11,769
16,639
13,020

For the Financial Year Ending 30[th] June 2024

50

Notes to the Accounts

16 Endowment funds 2022/23

Consolidated and College restricted net assets relating to endowments are as follows:

Balance at beginning of year:
Capital
Transfer to general reserves
(Decrease)/increase in interest
Investment management charges
(Decrease)/increase in market value of
investments
Balance at end of year
Represented by:
Capital
Analysis by type of purpose:
Fellowship funds
Scholarship funds
Prizes funds
Hardship funds
Travel grant funds
Other funds
General endowments
Total
Analysis by asset:
Investments
 Restricted
permanent
endowments
Unrestricted
permanent
endowments
2023
2022
£,000
£,000
£,000
£,000
3,994
9,026
13,020
15,319
26
-
26
-
-
5
5
25
-
(206)
(206)
(143)
-
(95)
(95)
(93)
210
760
970 (2,088)
4,230
9,490
13,720 13,020
4,230
9,490
13,720
13,020
1,238
-
1,238
1,175
1,862
-
1,862
1,767
106
-
106
76
368
-
368
349
2
-
2
2
654
-
654
625
-
9,490
9,490
9,026
4,230
9,490
13,720
13,020
4,230
9,490
13,720
13,020
4,230
9,490
13,720
13,020

For the Financial Year Ending 30[th] June 2024

51

Notes to the Accounts

17 Restricted reserves

Consolidated and College reserves with restrictions are as follows:

Permanent
unspent and Other
other Capital restricted
restricted grants funds/
income unspent donations 2024 2023
Balance at beginning of year: £’000 £’000 £’000 £’000 £’000
Capital - 71 1,323 1,394 382
Accumulated income 2,942 - 2,942 3,192
New grants - - - - -
New donations 11 33 2,264 2,308 1,278
Investment income 185 - 13 198 191
Increase/(decrease) in market value of
investments 238
 - (42) 196 119
Capital grants utilised - (4) - (4) (7)
Expenditure (192) - (605) (797) (819)
Balance at end of year 3,184 100 2,953 6,237 4,336
Analysis of other restricted funds/donations by
type of purpose
Fellowship funds 594 - 1,624 2,218 576
Scholarship funds 119 - 1,040 1,159 1,313
Prizes funds 13 - 6 19 18
Hardship funds 23 - 13 36 29
Travel grant funds - - - - -
Other funds 2,435 - 270 2,705 2,329
General - 100 - 100 71
Total 3,184 100 2,953 6,237 4,336
Balance at end of year:
Capital - 100 2,953 3,053 1,394
Accumulated income 3,184 - - 3,184 2,942
Balance at end of year 3,184 100 2,953 6,237 4,336

For the Financial Year Ending 30[th] June 2024

52

Notes to the Accounts

17 Restricted reserves 2022/23

Consolidated and College reserves with restrictions are as follows:

Permanent
unspent and Other
other Capital restricted
restricted grants funds/
income unspent donations 2023 2022
Balance at beginning of year: £’000 £’000 £’000 £’000 £’000
Capital - 2 380 382 415
Accumulated income 3,192 - - 3,192 1,035
New grants - - - - -
New donations 7 76 1,195 1,278 3,069
Investment income 191 - - 191 190
Increase/(decrease) in market value of
investments -
 - 119 119 (289)
Capital grants utilised - (7) - (7) (3)
Expenditure (448) - (371) (819) (843)
Balance at end of year 2,942 71 1,323 4,336 3,574
Analysis of other restricted funds/donations by
type of purpose
Fellowship funds 565 - 11 576 590
Scholarship funds 196 - 1,117 1,313 571
Prizes funds 15 - 3 18 19
Hardship funds 9 - 20 29 23
Travel grant funds - - - - -
Other funds 2,157 - 172 2,329 2,368
General - 71 - 71 3
Total 2,942 71 1,323 4,336 3,574
Balance at end of year:
Capital - 71 1,323 1,394 382
Accumulated income 2,942 - - 2,942 3,192
Balance at end of year 2,942 71 1,323 4,336 3,574

For the Financial Year Ending 30[th] June 2024

53

Notes to the Accounts

18 Memorandum Unapplied Total Return

Included within reserves, the following amounts represent the Unapplied Total Return of the College:

Total Return of the College:
Unapplied Total Return at beginning of year
Unapplied Total Return for year (see note 3b)
Unapplied total return at year end		 2024
2023
£,000
£,000
5,946
5,226
1,731
720
7,677
5,946

For the Financial Year Ending 30[th] June 2024

54

Notes to the Accounts

Reconciliation of consolidated surplus for the year to net cash Reconciliation of consolidated surplus for the year to net cash
19 inflow from operating activities
2024 2023
£,000 £,000
(Deficit)/Surplus for the year 6,579 3,551
Adjustments for non-cash items
Depreciation 841 806
Decrease in cash held by fund managers 371 1,099
Pension deficit Increase/(Decrease) (944) 28
(Increase)/Decrease in Stocks (6) (4)
Decrease/(Increase) in Debtors 1 (117)
Increase/(Decrease) in Creditors 151 204
414 2,016
Adjustments for investing or financing activities
Investment income from dividends/rents (411) (297)
Gains/losses on investments (787) (963)
(1,198) (1,260)
Interest payable -bond and loan 535 413
535 413
Net cash inflow from operating activities 6,330 4,720
20 Cash flows from investing activities
Investment income from dividends/rents 411 297
Purchase of investments (23,831) (3,162)
Sale of investments 22,232 2,007
Payments made to acquire fixed assets (657) (1,716)
Total cash flows from investing activities (1,845) (2,574)
21 Cash flows from financing activities
Interest payable - university loan (265) (144)
Interest payable - bond (269) (269)
New loan - 900
Total cash flows from financing activities (534) 487

For the Financial Year Ending 30[th] June 2024

55

Notes to the Accounts

Consolidated reconciliation and analysis of net debt

Cash and cash equivalents
Amounts falling due after
more than one year:
University loan
Bond - Aviva
Bond - Canada Life
Bond - Pricoa
Total		 At 1 July
2023
Cashflows
Acq &
disposal
subs
New
finance
leases
Other non
cash
changes
Changes
in
market
value
and exch
rates
At 30th
June
2024
£000
£000
£000
£000
£000
£000
£000
6,039
3,951
9,990
11,296
-
-
-
-
- 11,296
1,959
-
-
-
-
-
1,959
1,521
-
-
-
-
-
1,521
2,564
-
-
-
-
2,564
17,340
-
-
-
-
- 17,340

22 Lease obligations

At 30th June, the College had commitments under non-cancellable operating leases as follows:

Land and buildings:
Expiring within one year
Expiring between two and five years		 2024
2023
£’000
£’000
5,394
2,908
11,434
847
16,828
3,755

Capital Commitments

The College has no commitments to Capital works for the forthcoming year (2023: £297k) as at the balance sheet date.

For the Financial Year Ending 30[th] June 2024

56

Notes to the Accounts

23 Pension Schemes

FRS 102 Section 28 Post Employment Benefits

Critical accounting judgements

FRS 102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as the Universities 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 a deficit result in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense in the profit and loss in accordance with section 28 of FRS 102. The directors are satisfied that the scheme provided by the Universities Superannuation Scheme meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the recovery plan in existence at the date of approving the financial statements.

Pension Costs

The total cost charged to the profit and loss account is £45k (2023: £241k) which makes up part of the figure in note 15.

A deficit recovery plan was put in place as part of the 2020 valuation, which required payment of 6.2% of salaries over the period 1 April 2022 until 31 March 2024, at which point the rate would increase to 6.3%. As set out in Note 15, no deficit recovery plan was required under the 2023 valuation because the scheme was in surplus on a technical provisions basis. The institution was no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision to the profit and loss account.

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

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

The 2023 valuation was the seventh valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions (the statutory funding objective). At the valuation date, the value of the assets of the scheme was £73.1 billion and the value of the scheme’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%.

The key financial assumptions used in the 2023 valuation are described below. More detail is set out in the Statement of Funding Principles (uss.co.uk/about-us/valuation-and-funding/statement-of-fundingprinciples) .

For the Financial Year Ending 30[th] June 2024

57

Notes to the Accounts

CPI assumption Term dependent rates in line with the difference between the Fixed
Interest and Index linked yield curves less:
1.0% p.a. to 2030, reducing linearly by 0.1% p.a. from2030
Pension increases
(subject to a floor of
0%)		 Benefits with no cap:
CPI assumption plus 3bps
Benefits subject to a “soft cap” of 5% (providing inflationary increases
up to 5%, and half of any excess inflation over 5% up to a maximum of
10%):
CPI assumption minus 3bps
Discount rate
(forward rates)		 Fixed interest gilt yield curve plus:
Pre-retirement: 2.5% p.a.
Post retirement: 0.9% p.a.

The main demographic assumptions used relate to the mortality assumptions. These assumptions are based on analysis of the scheme's experience carried out as part of the 2023 actuarial valuation. The mortality assumptions used in these figures are as follows:

2023 valuation
Mortalitybase table 101% of S2PMA "light" for males and 95% of S3PFA for females
Future
improvements to
mortality		 CMI 2021 with a smoothing parameter of 7.5, an initial addition of
0.4% p.a., 10% w202 and w2021 parameters, and a long-term
improvement rate of 1.8% pa for males and 1.6% for females.

The current life expectancies on retirement at age 65 are:

The current life expectancies on retirement at age 65 are:
2024 2023
Males currentlyaged 65(years) 23.7 24.0
Females currentlyaged 65(years) 25.6 25.6
Males currentlyaged 45(years) 25.4 26.0
Females currentlyaged 45(years) 27.2 27.4

For the Financial Year Ending 30[th] June 2024

58

Notes to the Accounts

Cambridge Colleges Federated Pension Scheme

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

The liabilities of the plan have been calculated, at 30 June 2024, for the purposes of FRS102 using a valuation system designed by the Management Committee, acting as Trustee of the Cambridge Colleges’ Federated Pension Scheme, but allowing for the different assumptions required under FRS102 and taking fully into consideration changes in the plan benefit structure and membership since that date.

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

2024
%p.a.		 2023
%p.a.
Discount rate 5.10 5.20
RPI assumption 3.35 3.40*
CPI assumption: To 2030
From 2031		 2.35
3.25		 2.80
2.80*
Pension increases inpayment(RPI Max 5%p.a.) 3.15 3.30*

*For 1 year only, we have assumed that RPI will be 9% and CPI will be 7% (2023: 9% and 7% respectively). The caps under the Rules are applied to assumed pension increases.

The underlying mortality assumption is based upon the standard table known as S3PA on a year of birth usage with CMI_2022 future improvement factors and a long-term rate of future improvement of 1.25% p.a., a standard smoothing factor (7.0) and no allowance for additional improvements (2023: S3PA with CMI_2022 future improvement factors and a long-term future improvement rate of 1.25% per annum, a standard smoothing factor (7.0) and no allowance for additional improvements). This results in the following life expectancies:

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

cases:
Male Female
Deferred Members – Option 1 Benefits 63 62

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

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

2024
£		 2023
£
Present value ofplan liabilities (293,987) (321,556)
Market value ofplan assets 220,381 247,778
Net defined benefit asset/(liability) (73,606) (73,778)

For the Financial Year Ending 30[th] June 2024

59

Notes to the Accounts

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

2024
£		 2023
£
Current service cost - -
Administration Expenses 4,378 4,378
Interest on net defined benefit(asset)/liability 3,724 2,408
(Gain)/loss onplan changes - -
Curtailment(gain)/loss - -
Total 8,102 6,786

Changes in the present value of the plan liabilities for the year ending 30 June 2024 (with comparative figures for the year ending 30 June 2023) are as follows:

2024
£		 2023
£
Present value ofplan liabilities at beginningofperiod 321,556 358,720
Current service cost(includingEmployee contributions) - -
Employee contributions - -
Benefitspaid (46,965) (12,117)
Interest onplan liabilities 15,515 13,403
Actuarial losses/(gains) 3,881 (38,450)
(Gain)/loss onplan changes - -
Curtailment(gain)/loss - -
Present value ofplan liabilities at end ofperiod 293,987 321,556

Changes in the fair value of the plan assets for the year ending 30 June 2024 (with comparative figures for the year ending 30 June 2023) are as follows:

2024
£		 2023
£
Market value ofplan assets at beginningofperiod 247,778 293,182
Contributionspaid bythe College 7,768 7,768
Employee contributions - -
Benefitspaid (46,965) (12,117)
Administration Expenses (4,556) (4,656)
Interest onplan assets 11,791 10,995
Return on assets,less interest included in Profit & Loss 4,565 (47,394)
Market value ofplan assets at end ofperiod 220,381 247,778
Actual return onplan assets 16,536 (36,399)

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

2024 2023
Equities 46% 49%
Bonds & Cash 42% 38%
Property 12% 13%
Total 100% 100%

For the Financial Year Ending 30[th] June 2024

60

Notes to the Accounts

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

Analysis of the re-measurement of the net defined benefit liability recognised in Other Comprehensive Income (OCI) for the year ending 30 June 2024 (with comparative figures for the year ending 30 June 2023) are as follows:

2024
£		 2023
£
Return on assets,less interest included in Profit & Loss (4,565 (47,394)
Expected less actualplan expenses (178) (278)
Experiencegains and losses arisingonplan liabilities (4,497) (14,283)
Changes in assumptions underlying
thepresent value ofplan liabilities		 616 52,733
Actuarialgain/(loss)recognised in OCI 506 (9,222)

Movement in net defined benefit asset/(liability) during the year ending 30 June 2024 (with comparative figures for the year ending 30 June 2023) are as follows:

2024
£		 2023
£
Net defined benefit asset/(liability)at beginningofyear (73,778) (65,538)
Recognised in Profit and Loss (8,102) (6,786)
Contributionspaid bythe College 7,768 7,768
Re-measurement of net defined benefit liability recognized in
OCI		 506 (9,222)
(Deficit)/Surplus inplan at the end of theyear (73,606) (73,778)

Funding Policy

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

The last such valuation was as at 31 March 2023. This showed that the plan’s assets were insufficient to cover the liabilities on the funding basis. A Recovery Plan has been agreed with the College, which commits the College to paying contributions to fund the shortfall.

These deficit reduction contributions are incorporated into the plan’s Schedule of Contributions dated 4 June 2024 and are as follows:

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

For the Financial Year Ending 30[th] June 2024

61

Notes to the Accounts

24. Principal Subsidiary Undertakings

Company Country of Incorporation Cost Class of Proportion of
Number and Operation Shares shares held
Lucy Cavendish 02844689 England 2 Ordinary 100%
Trading Limited
Lucy Cavendish 12218836 England 1 Ordinary 100%
Estates Limited

The principal activity of the above companies is detailed in the directors' reports of the individual companies’ financial statements and are included in the consolidated summary of income and expenditure and net assets and liabilities for the year.

Lucy Cavendish Trading generated profits of £27.9k (2023: £20.4k) for the year and has net assets of £2 (2023: £2)

Lucy Cavendish Estates Limited generated a loss of £6k (2023: Profit £13.5k) for the year and has net assets of £1 (2023: £1)

Lucy Cavendish Trading Limited College supplies various conference services. Lucy Cavendish Estates facilitates estates development for the College.

Lucy Cavendish Trading Ltd shares are held 50% directly by the College and 50% by the Bursar as a nominee of the College. 100% of the shares are held beneficially for the College.

Registered office address:

Lady Margaret Road Cambridge CB3 0BU

For the Financial Year Ending 30[th] June 2024

62

Notes to the Accounts

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 a College Council member may have an interest. All transactions involving organisations in which a member of the College Council may have an interest are conducted at arm’s length and in accordance with the College’s normal procedures.

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

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

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

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

From
To
£0
£10,000
£10,001
£20,000
£20,001
£30,000
£30,001
£40,000
£40,001
£50,000
£50,001
£60,000
£60,001
£70,000
£70,001
£80,000
£80,001
£90,001
£90,001
£100,000
Total		 2024
2023
26
23
3
1
1
-
3
5
1
1
4
4
1
1
2
1
-
-
1
-
42
36

The total trustee salaries were £806k for the year (2023: £596k)

The trustees were also paid other taxable benefits (including associated employer National Insurance contributions and employer contributions to pensions) which totalled £208k for the year (2023: £208k).

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

There are 31 Colleges, each of which is an independent corporation with its own property and income. Each College publishes its own financial statements in a form specified by the University of Cambridge. The College pays levies to support the activity of the Office of Intercollegiate Services (OIS). The OIS is responsible primarily for arranging support services to the 31 colleges of the Collegiate University (Cambridge).

The College acts as an agent for the collection of fees for the University of Cambridge; for the year ended 30 June 2024 these fees total £15.5m (2023: £12.3m). During the year, the University paid Lucy Cavendish College from these fees, sums totalling £3.6m (2023: £3.0m) under the terms of agreements between the University and the Colleges to share fee income with the Colleges in a way that recognises the relative contributions of the University and the Colleges. During the year 2023/24 the College received a contribution under Statute GII of £1.2m (2023: £1.1m) from the Colleges Fund. The Colleges Fund is administered by the University of Cambridge on behalf of the Colleges, who make all contributions to and receive all allocations

For the Financial Year Ending 30[th] June 2024

63

Notes to the Accounts

from the Fund. Lucy Cavendish College administers a Cambridge Bursary Scheme to support undergraduates financially; the University of Cambridge contributed £432k to this scheme (2023: £465k). In the course of its charitable activities, Lucy Cavendish College also pays the University of Cambridge for printing, network and other services. In addition, Lucy Cavendish College periodically provides conference-related services including accommodation, catering and other services to the organisations and departments belonging to the University of Cambridge on standard third-party terms.

There are no other related party transactions to note.

26 Prior Year Adjustment

During the year the USS pension plan ceased deficit repayment plans and has subsequently reported a surplus. This has meant that the provision for liability in relation to the plan previously included has been removed from the accounts and is reported as a separate item on the face of the income and expenditure account. As such the comparative figures have been adjusted in line with this presentation. This has no impact in the overall numbers or calculations used.

Additionally, a presentational adjustment has been made in respect of bank interest received to present this as additional investment income, rather than other income. This is in line with accounting standards and necessary due to its impact on the financial statements. This does not change reported financial results.

For the Financial Year Ending 30[th] June 2024

64