2024-06-30-accounts - The President And Fellows Of Wolfson College In The University Of Cambridge

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ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

Registered Charity No. 1138143

Annual Report and Financial Statements for the year ended 30 June 2024

Contents	Page
PART 1: ANNUAL REPORT
Introduction	3
Summary Financial Results	3
Professional Advisers	3
Charity Trustees	4
Objects and Public Benefit	5
Operating and Financial Review	7
Corporate Governance	13
Statement of Internal Control	13
Responsibilities of the Governing Body	14
Independent Auditor’s Report	15
PART 2: FINANCIAL STATEMENTS
Statement of Principal Accounting Policies	19
Consolidated Statement of Comprehensive Income and Expenditure	25
Consolidated Statement of Changes in Reserves	26
Consolidated and College Balance Sheets	27
Consolidated Cash Flow Statement	28
Notes to the Accounts	29

Annual Report and Financial Statements for the year ended 30 June 2024

INTRODUCTION

Wolfson College is one of the 31 colleges in the University of Cambridge. It was founded as University College in 1965, and was renamed Wolfson College in 1973, receiving its Royal Charter in 1977. The primary object of the College is to advance education, learning and research in the University of Cambridge.

The College admits both full-time and part-time postgraduate students studying for PhDs and Masters degrees, and full-time mature undergraduates aged 21 or above. The total number of students as at 1 December 2023 was 1,116. The College has a large Fellowship, which is particularly active in research within the University.

The College occupies a nine-acre site to the west of central Cambridge, consisting of new buildings built since 1972 and older houses absorbed into the site and landscaped gardens. The residential buildings include approximately 450 units of accommodation for students and academic visitors, accommodating over 500 residents in total. Other buildings house a library, a dining hall, seminar and teaching rooms, common rooms, a gym, and other shared spaces.

The College is a registered charity, regulated by the Charity Commission and is registered with the Fundraising Regulator.

These accounts are presented in the format of the Recommended Cambridge College Accounts (RCCA), which comply with the Higher Education SORP (Statement of Recommended Practice: Accounting for Further and Higher Education).

SUMMARY FINANCIAL RESULTS

The financial statements consolidate the activities of the College and the College’s trading subsidiary, Wolfson College Cambridge Enterprises Limited.

Total income for the year was £15.30m. Total expenditure for the year (including depreciation of £1.16m) was £10.98m, leading to a surplus (before other gains and losses) of £4.32m and total comprehensive income for the year of £4.47m. The main sources of income were academic fees (£4.71m) and accommodation and catering (£4.39m). The main area of expenditure was staff costs of £5.58m.

Endowment investments, which are mainly invested in the Cambridge University Endowment Fund (CUEF), were valued at £38.76m on 30 June 2024. In addition, the College held fixed asset investments of £9.73m in the CUEF at the year end, bringing the total of endowment and other investments to £48.49m. Total net assets were £88.12m.

PROFESSIONAL ADVISERS

Bankers

Auditor Bankers Peters Elworthy & Moore Lloyds Bank plc Salisbury House Endeavour House Station Road Chivers Way, Histon Cambridge CB1 2LA Cambridge CB24 9ZR

Wolfson College Barton Road

Cambridge CB3 9BB Website: www.wolfson.cam.ac.uk Charity Registration No. 1138143

Annual Report and Financial Statements for the year ended 30 June 2024

CHARITY TRUSTEES

The College Officers and elected Fellow members of the College Council act as the Trustees of the charity. The College Council meets at least eight times in a year. In the financial year 2023-24 the following were members of the College Council:

Five College Officers ex officio

Professor Jane Clarke Dr Kevin Greenbank Mrs Joanna Cheffins Dr Susan Larsen Mr Simon Crookall

President; Chair of the Council Vice-President Bursar; Secretary of the Council Senior Tutor Development Director

Ten Fellows elected by the Governing Body

Ms Lynette Alcántara Professor Melody Clark (from 1 October 2023) Dr Anna Dempster (to 30 September 2023) Professor Stephen Evans Professor Peter Jones Dr Virginia Newcombe Professor Lloyd Peck (to 30 September 2023) Professor Paul Ramchandani (from 1 October 2023) Dr Samuel Roberts (to 30 September 2023) Dr Liron Shmilovits (to 30 September 2023) Dr Ana Toribio (from 1 October 2023) Dr Alex Trinidad (from 1 October 2023) Dr Martin Vinnell Professor James Wood

In addition, three Students from the Wolfson College Student Association (WCSA) are non-trustee members of College Council:

President of WCSA: Cameron Few (to November 2023) Lewis Kilding (from November 2023) Vice-President of WCSA: Ksenia Leonovich (to November 2023) Isaac James (from November 2023) Treasurer of WCSA: Isaac James (to November 2023) Karol Langer (from November 2023)

The Governing Body, consisting of all Fellows of the College (other than Emeritus, Visiting, Honorary and Bredon Fellows), is required by the College Statutes to be responsible for the approval of the annual audited accounts. There were 116 Governing Body Fellows as at 1 December 2023. The Governing Body meets at least four times in a year. The President is the Chair of the Governing Body, and the Bursar is the Secretary.

A full list of the Governing Body Fellows can be found on the College website at: https://www.wolfson.cam.ac.uk/people

The College’s corporate governance arrangements are set out on page 13.

Annual Report and Financial Statements for the year ended 30 June 2024

OBJECTS

The objects of the College are set out in its Royal Charter, effective from 1 January 1977, as follows:

to advance education, learning and research in the University of Cambridge;
to provide, for men or women who shall be members of the University, a College wherein they may work for degrees in the University or may carry out postgraduate or other special studies at Cambridge provided that no members of the College or any candidate for membership thereof shall be subject to any test of religious, social, political or racial character;
to apply the moneys of the College to the purposes of the College with power to invest as prescribed in the Statutes of the College;
to administer any trust or scheme for purposes connected with the objects of the College; and
to do all such things as are incidental or conducive to the carrying out of the above objects.

PUBLIC BENEFIT

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 undergraduate and postgraduate students. This education develops students academically and advances their leadership qualities and interpersonal skills, and so prepares them to play full and effective roles in society. In particular, the College provides:

teaching facilities and individual or small-group supervision for undergraduates, as well as pastoral, administrative and academic support for all students through its tutorial and mentoring systems; and
social, cultural, musical, recreational, and sporting facilities which enable each of its students to realise their academic and personal potential to the full while studying at the College.

The College advances research through:

providing Research Fellowships to outstanding young academics in the early stages of their careers, which enables them to develop and focus on their research in this formative period before they undertake the full teaching and administrative duties of an academic post;
supporting the research work of its students and Fellows by promoting interaction across disciplines, providing facilities for seminars, and developing a community of researchers; and
fostering academic networking by encouraging visits from outstanding academics as Visiting Fellows and Visiting College Research Associates.

The College maintains a Library which is a valuable resource for students and Fellows of the College.

The members of the College, both students and Fellows, are the primary beneficiaries and are directly engaged in education, learning or research.

Beneficiaries also include: students and academic staff from other Colleges in Cambridge and the University of Cambridge more widely, visiting academics from other higher education institutions and visiting alumni of the College who have an opportunity to attend educational events at the College or use its academic facilities. The College offers membership with Senior Member status to distinguished members of the local community without an existing College affiliation and membership with College Research Associate status to researchers in Cambridge also without an existing College affiliation. The general public is also able to attend various educational activities in the College such as lectures, seminars, exhibitions and concerts.

The College admits students who have the highest potential for benefiting from the education provided by the College and the University, regardless of their gender or their financial, social, religious, or ethnic background:

there are no geographical restrictions in the College’s objects and students and academic staff of the College are drawn from across the UK and internationally;
there are no age restrictions in the College’s objects, although the University of Cambridge’s Statutes and Ordinances restrict the College to admitting undergraduates who are aged 21 or above; and
there are no religious restrictions in the College’s objects and a wide range of faith traditions are represented in the College membership.

Annual Report and Financial Statements for the year ended 30 June 2024

PUBLIC BENEFIT (continued)

The College admits a significant number of part-time postgraduate students and its encouragement of such students allows individuals to benefit from a Cambridge education who might not otherwise have access.

The focus of the College is strongly academic, and students are required to satisfy high academic entry requirements.

The College receives the following income in respect of students:

(a) fees at externally regulated rates, charged to UK undergraduates (those eligible for loans from the Student Loans Company) and to postgraduate students; and College fees determined by the College annually, charged to Overseas undergraduates and to other UK undergraduates (those not eligible for loans from the Student Loans Company); and
(b) accommodation charges and meal charges set at reasonable rates.

In order to assist undergraduates of limited financial means, the College provides bursary support through a scheme operated in common with the University and other Colleges. For the academic year 2023-24, awards totalling £422.5k were made to 78 Wolfson undergraduates (£320.5k to 65 undergraduates in 2022-23): 31 were awarded the maximum independent student bursary of £5,600; and a further 47 were awarded an average of £5,295. The net cost to the College for participation in this scheme was £48.7k after contributions by the University and other Colleges of £373.8k. The scheme is widely advertised on the University website, on College websites and in the Admissions Prospectus.

To support the costs of both undergraduate and postgraduate students, the College provides various scholarships and bursaries, to help fund fees and living costs. The total cost to Wolfson in 2023-24 was £687.6k to 181 students (£440.6k to 165 students in 2022-23). Some of these awards were to students in receipt of Vice-Chancellor’s and other matched funding awards, which when combined with funding of £838.6k from the Cambridge Trust or University Departments, provided a total benefit of £1,526.2k. The Vice-Chancellor’s Awards scheme exists to support UK PhD students across the University, and in addition to awards made to named students by a College, all Colleges are required to contribute to the scheme irrespective of their participation. The amount required to be paid by the College in 2023-24 was £69.9k (£79.8k in 2022-23).

The College supports students through a grant scheme to assist with travel and attendance at conferences. The total awarded in 2023-24 was £51.5k to 102 students (£51.1k to 98 students in 2022-23).

In addition to its other programmes, the College operates a scheme for students in financial hardship. The total awarded in 2023-24 was £23.0k to 36 students (£33.5k to 43 students in 2022-23).

The College awards prizes to its students for academic distinction. The total awarded in prizes in 2023-24 was £33.9k to 113 students (£11.7k to 39 students in 2022-23).

To raise educational aspiration and attract outstanding applicants who might not otherwise have considered applying to Wolfson, the College holds open days, and provides guidance and information for prospective applicants on the College website and through the admissions staff in its Tutorial Office.

In order to fulfil its charitable purposes of advancing education, learning and research, the College employs a number of its Fellows in the following roles: College Assistant Professors, Directors of Studies, Supervisors, Tutors and senior administrative officers such as Bursar, Senior Tutor and Development Director. Several of these serve as charity trustees through membership of the College Council. The employment of the President and Fellows is undertaken with the intention of furthering the College’s aims and their employment directly contributes to the fulfilment of those aims. The private benefit accruing to the President and Fellows through salaries, stipends and employmentrelated benefits is objectively reasonable, measured against academic stipends generally; moreover, annual pay increases normally follow national settlements applying to the university sector. Without the employment of Fellows, the College could not fulfil its charitable aims as a College in the University of Cambridge. All salaries are reviewed annually by the Human Resources Committee.

Annual Report and Financial Statements for the year ended 30 June 2024

OPERATING AND FINANCIAL REVIEW

ING	AND FINANCIAL REVIEW
		Page
1	Student Numbers	7
2	Income and Expenditure	8
3	Capital Additions	8
4	Investments	9
5	Reserves	9
6	Fundraising and Alumni Relations	10
7	Principal Risks and Uncertainties	11
8	Future Plans	12

1 Student Numbers

The College admits full-time and part-time postgraduate students studying for PhDs and Masters courses and fulltime mature undergraduate students aged 21 and over. Total student numbers (including part-time postgraduates and postgraduates writing up or under examination) of 1,116 as at 1 December 2023 did not change significantly from the previous year (1,098). The College accepts both postgraduates who have selected the College as part of their application and postgraduates who are allocated to the College through an intercollegiate allocation process, designed to even out the distribution of applications across the Cambridge colleges. The following chart shows the figures for full-time students over the past seven years as at 1 December in each year:

----- Start of picture text -----
700
600 133 Continuing
134 131 141 undergraduates
119
119
500
53
131 60 64 46 New undergraduates
61
65
400 Continuing
49 140 171 151
117 162 postgraduates
125
300
117
200
266 299 300 280 293 302 New postgraduates
229
100
0
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24
Full-time Students
----- End of picture text -----

The total full-time student body of 640 was split between 187 undergraduates and 453 postgraduates. The full-time postgraduates body of 453 was split between Masters (245) and PhD / integrated Doctorate students (208). The College’s 288 part-time postgraduates also continued to play an important part in the College’s mix of students.

Annual Report and Financial Statements for the year ended 30 June 2024

OPERATING AND FINANCIAL REVIEW (continued)

2 Income and Expenditure

The Statement of Comprehensive Income and Expenditure (SOCIE) shows total income for the year of £15.30m (202223: £13.50m)

Increased student fees contributed to academic income of £4.71m, which was higher than in the previous year (£4.43m). Of this total, £4.29m is made up of fees paid by or on behalf of students, as set out in detail in note 1. Within academic income are included the contributions from the University and other Colleges for Cambridge Bursaries: £374k is included as income from this source, with a corresponding figure in expenditure of £423k, i.e., there was a net cost to the College of £49k.

Accommodation and catering income, at £4.39m, was higher than the previous year (£4.00m) reflecting an increase in conference operations in the summer. In 2022-23, although student occupancy was back to pre-pandemic levels, conference business, which mainly takes place in the summer months at the start of the financial year, was not. The College has 409 units of student accommodation, mainly for single occupation, accommodating up to 429 in total. In addition, there are five family flats. The remaining 38 units of accommodation are for visiting academics, part-time students, and other short-stay visitors.

There was an increase in endowment and investment income (from £2.00m to £2.39m) because of the purchase of additional units in the Cambridge University Endowment Fund (CUEF) at the end of last year and the performance of the Fund. Units were withdrawn from the CUEF in the last quarter of the current year in order to pay for capital expenditure.

Donations are classified as one of the following: unrestricted or restricted donations for spending in the current year; new endowments, for spending over the longer term; or capital grants, to support building or refurbishment projects. Total donation, endowment and grant income as shown in the SOCIE was £3.81m, compared to the previous year’s figure of £3.07m. Donations include a grant from the Colleges Fund of £928k in 2023-24 (£768k in 2022-23). This grant is added to endowment, however last year, because of the financial impact of the COVID-19 pandemic, the Colleges Fund Committee agreed that recipients of the grant might use it for operational purposes.

Total expenditure within the SOCIE was £10.98m, including depreciation of £1.16m. This total however includes a credit resulting from the decrease in the USS deficit provision of £861k (2022-23 charge of £16k). This liability was based on the College’s obligation over several years to contribute to the USS deficit recovery plan, but following a new valuation of the scheme the deficit provision is no longer required. Excluding the USS deficit liability movement, the proportion of total expenditure spent on staff costs was 48.7% (£5.58m), The cost of the three pension schemes on offer to staff (USS, CCFPS, Aviva), excluding the USS deficit provision change, was £523k, representing 9.3% of staff costs before the USS provision change.

3 Capital Additions

A number of capital transactions relating to the College’s estate and equipment, costing £3.19m (2022-23: £1.22m) are shown in note 9. Most of this relates to further expenditure on the main kitchen refurbishment of £2.38m to the end of June. The College started construction work in January 2024 and the project is due to complete in the next financial year, and so the costs are included as assets in the course of construction.

Annual Report and Financial Statements for the year ended 30 June 2024

OPERATING AND FINANCIAL REVIEW (continued)

4 Investments

Since 1 July 2010 the major part of the College’s endowment has been invested in the Cambridge University Endowment Fund (CUEF).

The CUEF’s investment objective is to achieve or exceed a long-term average annual rate of total return equal to the Consumer Prices Index (CPI) for each calendar year plus 5%, net of investment management costs. The fund has a hybrid rule for its distribution based on a long-term target capital value rate of 4%. Therefore, the overall long-term objective of the CUEF is to achieve an increase in asset values, after paying the distributions, of at least 1% above CPI.

In the year to June 2024 the College withdrew a net amount of £3m from the CUEF which comprised £2,706k of new endowment funds, plus £135k of existing endowment funds previously invested with Cazenove Capital Management, less a withdrawal of £5,841k of fixed asset investments.

The College’s investments in the CUEF were as follows:

withdrawal of £5,841k of fixed asset investments. ollege’s investments in the CUEF were as follows:
Wolfson College investments in the CUEF	30 June 2024	30 June 2023
Unit value	£70.87	£67.59
Number of units (endowment)	544,992	504,907
Number of units (fixed asset investments)	137,345	219,472
Total number of units	682,337	724,379
Value of units (endowment)	£38.62m	£34.13m
Value of units (fixed asset investments)	£9.73m	£14.83m
Total value of units	£48.35m	£48.96m

The College received distributions totalling £1.98m (£1.40m from the endowment units and £0.58m from the fixed asset investment units), giving a distribution yield of 4.04% on the opening capital value.

The unaudited CUEF total fund value was £4.23 billion at 30 June 2024 and the estimated asset allocation of the fund was as follows:

was as follows:
CUEF asset classes	30 June 2024	30 June 2022
	%	%
Public equity	40	43
Private equity	24	24
Absolute return and Credit	23	19
Real assets	8	7
Cash	5	7

In addition to its investment in the CUEF, the College still holds endowment funds in two private equity funds with Cazenove Capital Management which were valued at £139k as at 30 June 2024 (2023: £314k). The College’s strategy is, as and when exit opportunities arise in those private equity funds, to invest the proceeds in the CUEF. The College supports the CUEF’s aim to have no meaningful exposure to fossil fuels by 2030.

5 Reserves

A reserves policy ensures that the College has sufficient financial resources to continue, but also constrains the extent to which reserves are built up from operating surpluses to help maintain intergenerational equity and balance the needs of current and future students.

Annual Report and Financial Statements for the year ended 30 June 2024

OPERATING AND FINANCIAL REVIEW (continued)

5 Reserves (continued)

Total reserves at 30 June 2024 were £88.12m, of which £47.62m were classed as ‘unrestricted reserves’. However, as these reserves are mainly represented by the College’s operational estate and therefore not available as funds to be spent, a more practical reserves policy has been implemented. The aim is to have realisable unrestricted reserves, being equivalent to fixed asset investments (excluding the investment cost relating to the £10m private placement) plus net current assets, in the range of 25% to 50% of annual expenditure as shown on the Statement of Consolidated Income and Expenditure, for use in the case of unexpected financial downturns or to pursue new opportunities. The figure for realisable unrestricted reserves at 30 June 2024 was £9.39m, above the specified range of £2.74-5.49m, but considered beneficial in the current circumstances to help fund ‘masterplan’ capital expenditure requirements.

6 Fundraising and Alumni Relations

The Development Office maintains contact with our alumni and heads up the fundraising activity of the College. The College has a database of over 14,000 alumni, of whom more than half live outside the UK in over 150 different countries. The office works to keep the alumni community engaged with regular communications and a programme of in person and on-line events which reaches audiences across the world.

The College is registered with the Fundraising Regulator and does not use third-party professional fundraisers. Fundraising is geared towards: the annual fund, for spending in the current year; the endowment, for spending over the longer term; or capital grants, to support building or refurbishment projects. As set out above, the endowment creates a stream of income also for spending in the current year. Total donations were as follows:

	30 June 2024	30 June 2023
	£’000	£’000
Colleges Fund grant	928	768
Legacies	1,116	107
Trusts	353	173
Donations above £100k	1,074	1,753
Donations up between £25k and £100k	79	45
Donations up to £25k	258	227
Total Donations	3,808	3,073

Donations, whether made to the annual fund, to the endowment, or as capital grants, make a significant impact on the College, especially in student support and scholarships. The Morrison Society recognises those who have made a pledge to the College in their Will to ensure the long-term future of the College. At 30 June 2024 there were 105 members of the Morrison Society. In addition, the President’s Circle members make generous annual gifts to the College, and a series of stewardship events are arranged throughout the year to honour and thank our supporters.

Annual Report and Financial Statements for the year ended 30 June 2024

OPERATING AND FINANCIAL REVIEW (continued)

7 Principal Risks and Uncertainties

The College has a detailed risk register which the College Council reviews regularly. The risk register was substantially revised in 2022-23 to take account of lessons learned from the pandemic and the economic and political changes that have followed. The register sets out risks in the following areas: Finance; Size & Shape of Student Body; Student Academic Experience; Student Welfare and Wellbeing; Fellowship & Membership; Human Resources; Buildings & Estate; Sustainability; Equality, Diversity & Inclusion; Fundraising; Communications; IT; Governance & Administration; and Cybersecurity. A number of risks are analysed in each area and are monitored throughout the year by the relevant College committee. As well as setting out the likelihood of occurrence and severity of impact, the risk register also sets out control procedures, monitoring processes, risk owners and further actions.

The principal risks and uncertainties facing the College are:

Inflation: The Consumer Prices Index fell from 6.8% in July 2023 to 2% in June 2024 but the after-effects of the recent high inflation are still felt by members of the College community and in every area of the College’s operations. The value of the regulated undergraduate fee for UK students, which has remained at £9,250 p.a. since 2017 (having been £9,000 since 2012) has significantly reduced. Wage inflation affects the College’s ability to maintain optimal staffing levels as Colleges compete for operational and other staff. It also remains to be seen how the recent significant cost of living rises could affect student applications and current students in the longer term; the College will likely need to increase its investment in student support at the same time as it faces demands in many other areas of business. As a member of the Cambridge Colleges’ energy purchasing consortium, the College has fixed electricity and gas prices, which may or may not benefit the College depending on whether energy prices rise or fall during the period of the contracts.

Climate Change: The College and its members face physical risks, arising from the changes in weather and climate that impact the economy and transition risks which arise from the transition to a low-carbon economy. The College is developing an ambitious sustainability strategy which sets out the College’s plan to reduce its carbon emissions as well as to embed sustainability in all of its operations. The implementation of the plan, which has already started with the degasification of the College kitchen, will be costly and access to public funds for this purpose is increasingly restricted. However, if the College does not implement its strategy in a timely manner, it will not only fail to make its contribution to tackling this existential crisis but could also suffer a negative impact on its reputation and its recruitment of students, Fellows, and staff.

External political and economic threats facing Collegiate Cambridge : The war in Ukraine, the conflict in Gaza, the volatility and vulnerability of energy prices and supply as well as withdrawal from the European Union all have the potential to affect the University and its Colleges adversely because of major uncertainty about their impact on the recruitment of students, researchers, and staff. The longer term economic, social and health effects of the Covid 19 pandemic are still unknown. Before the pandemic, the University signalled its intention to increase its postgraduate numbers, particularly by way of increasing the number of its MPhil courses. The Colleges, including Wolfson, have stated their intention to support that growth, but this may be more difficult to achieve than was anticipated before the pandemic. Difficulties with and the increased expense of international travel, the rise of digital educational options and economic uncertainty may constrain the University’s anticipated growth. Whilst the Cambridge brand will undoubtedly continue to be extremely strong, predominantly graduate colleges such as Wolfson, with a significant number of international students, may find it more challenging to recruit and maintain target student numbers.

Economic factors which might affect the College’s sources of income and growth : The student fees, room rents and catering income from members represent the greatest source of income to the College; accordingly achieving the College’s student number targets is critical to the College’s financial model and increasing student numbers is critical to growth. As explained above, although overall student numbers at Wolfson have remained buoyant, there is no guarantee that University graduate numbers will continue to increase and, since decisions on graduate admissions are taken by the University, the College is dependent on the University to obtain the benefit of any increased student numbers. Any reduction in student numbers would have an impact on the College’s finances. The demand for rooms in College normally outstrips supply, so any shortfall in student numbers would have to be significant before affecting rental income. Fee income, however, is more sensitive to shifts in student numbers.

Annual Report and Financial Statements for the year ended 30 June 2024

OPERATING AND FINANCIAL REVIEW (continued)

8 Future Plans

As the College prepares for the arrival of its next president, Professor Ijeoma Uchegbu, in Michaelmas term 2024 and for its sixtieth anniversary in 2025, it is looking to the future. The College has started on the first phase of its decarbonisation strategy with the extension and refurbishment of the College kitchen facilities, and is planning its next steps to increase its student accommodation on site, following the recommendations of its masterplan (https://www.wolfson.cam.ac.uk/masterplan). The Development department is planning a capital campaign to raise the necessary funds for the masterplan but is equally focussed on maintaining and growing the funding needed to attract and support our excellent students. Whilst embarking on this work is financially and logistically challenging, the College is confident that, with prudent financial management and a detailed understanding of the risks involved, it will be able to progress and prepare for future generations of Wolfson members.

Annual Report and Financial Statements for the year ended 30 June 2024

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 (registered number 1138143) and subject to regulation by the Charity Commission for England and Wales. The members of the Council are the charity trustees and are responsible for ensuring compliance with charity law.
3 The Trustees are advised in carrying out their duties by a number of Committees, including:

Buildings & Estate Development Educational Policy Fellowship & Membership Finance Health & Safety House Human Resources Sustainability

4 The principal College officers are the President, Vice-President, Bursar, Senior Tutor, and Development Director.
5 It is the duty of the Finance 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 the external Auditor; to consider reports submitted by the Auditor; to monitor the implementation of recommendations made by the Auditor; and to make regular reports to the Trustees by way of minutes of its meetings. Membership of the Finance Committee includes all the principal College officers, other members of the Governing Body and the Emeritus Fellowship, the Finance Manager and two officers of the Student Association.
6 Three members of the Governing Body, who are not members of the Finance Committee, are elected by the Governing Body to act as Inspectors of Accounts to serve a three-year term, with annual rotation of one Inspector.
7 There is a Register of Interests of Trustees. Declarations of interest are made systematically at all Governing Body, Council, and committee meetings.

The College’s Trustees during the year ended 30 June 2024 are set out on page 4.

STATEMENT OF INTERNAL CONTROL

1 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 the College’s Statutes.
2 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.
3 The system of internal control is designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively, and economically. This process was in place for the year ended 30 June 2024 and up to the date of approval of the financial statements.
4 The Trustees are responsible for reviewing the effectiveness of the system of internal control.
5 The Trustees’ review of the effectiveness of the system of internal control is informed by the work of the various Committees, the Bursar, and the College officers, who have responsibility for the development and maintenance of the internal control framework, and by comments made by the external Auditor in their management letter and other reports.

Annual Report and Financial Statements for the year ended 30 June 2024

RESPONSIBILITIES OF THE GOVERNING BODY

The Governing Body is responsible for preparing the Annual Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the College will continue in operation.

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

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

Annual Report and Financial Statements for the year ended 30 June 2024

INDEPENDENT AUDITOR’S REPORT TO THE GOVERNING BODY OF WOLFSON COLLEGE

Opinion

We have audited the financial statements of Wolfson College (the ‘College’) and its subsidiary, Wolfson College Cambridge Enterprises Limited (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 and College Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the Group’s and College’s affairs as at 30 June 2024 and of its incoming resources and application of resources for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011 and the Statutes of the University of Cambridge.

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group’s 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 Governing Body are responsible for the other information. The other information comprises the information included in the Annual Report other than the financial statements and our auditors’ report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Annual Report and Financial Statements for the year ended 30 June 2024

INDEPENDENT AUDITOR’S REPORT (continued)

Opinion on other matters prescribed by the Statutes of the University of Cambridge

In our opinion based on the work undertaken in the course of the audit:

The contribution due from the College to the University has been computed as advised in the provisional assessment by the University of Cambridge and in accordance with the provisions of Statute G, II, of the University of Cambridge.

Matters on which we are required to report by exception

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

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

sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.

Responsibilities of the Governing Body

As explained more fully in the responsibilities of the Governing Body statement set out on page 14, the Governing Body 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 Governing Body determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors’ responsibilities for the audit of the financial statements

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

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

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

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the Group through discussions with Trustees and other management, and from our knowledge and experience of the education sector;
we obtained an understanding of the legal and regulatory framework applicable to the Group and how the Group is complying with that framework;
we obtained an understanding of the Group’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance;
we identified which laws and regulations were significant in the context of the Group. The Laws and regulations we considered in this context were Charities Act 2011, the Statutes of the University of Cambridge and taxation legislation. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items;

Annual Report and Financial Statements for the year ended 30 June 2024

INDEPENDENT AUDITOR’S REPORT (continued)

in addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the Group’s and College’s ability to operate or to avoid material penalty; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we;

tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policy were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

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

agreeing financial statement disclosures to underlying supporting documentation;
reviewing minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with relevant regulators and the College’s legal advisors.

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilties. This description forms part of our auditors’ report.

Use of our report

This report is made solely to the College’s Governing Body as a body, in accordance with College’s statutes, the Statutes of the University of Cambridge and the Charities Act 2011. Our work has been undertaken so that we might state to the Governing Body those matters we are required to state to them in an Auditors’ 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 Governing Body as a body, for our audit work, for this report, or for the opinions we have formed.

PETERS ELWORTHY & MOORE

Chartered Accountants and Statutory Auditors

Salisbury House Station Road Cambridge CB1 2LA

Date:

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

Annual Report and Financial Statements for the year ended 30 June 2024

PART 2: FINANCIAL STATEMENTS	Page
Statement of Principal Accounting Policies	19
Consolidated Statement of Comprehensive Income and Expenditure	25
Consolidated Statement of Changes in Reserves	26
Consolidated and College Balance Sheets	27
Consolidated Cash Flow Statement	28
Notes to the Accounts	29

Annual Report and Financial Statements for the year ended 30 June 2024

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 Consolidated Statement of Comprehensive Income and Expenditure includes activity analysis in order to demonstrate that all fee income is spent for educational purposes. The analysis required by the SORP is set out in note 7.

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

Basis of accounting

The financial statements have been prepared under the historic cost convention, modified in respect of the treatment of investments which are included at valuation.

Basis of consolidation

The consolidated financial statements include the College and its active subsidiary undertaking, Wolfson College Cambridge Enterprises Limited. Intra-group balances are eliminated on consolidation. The financial statements of the College’s two other subsidiary companies, Lee Library Limited and Wolfson College Development Limited, have not been consolidated because they are dormant. Details of the subsidiary undertakings are set out in note 21. The activities of student societies have not been consolidated, because they are separate bodies which are not within the financial control of the College.

Recognition of income

Academic fees

Academic fees are recognised in the period to which they relate and include all fees chargeable to students or their sponsors.

Grant income

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

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.

Donations and endowments

Donations and endowments are non-exchange transactions. They are recognised within the Consolidated Statement of Comprehensive Income and Expenditure when the College is entitled to the income.

Donations with donor-imposed restrictions are held in restricted reserves until such time that expenditure is incurred in accordance with the restrictions.

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

Restricted donations – the donor has specified that the donation must be used for a particular objective;
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;
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;
Restricted expendable endowments – the donor has specified a particular objective and the College has the power to use the capital element of the fund.

Annual Report and Financial Statements for the year ended 30 June 2024

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued)

Investment income and changes in value of investment assets

Investment income and changes in the value of investment assets are recorded in income in the period in which they arise and as either restricted or unrestricted income according to the terms or other restrictions applied to the individual endowment fund.

Other income

Income is received from a range of activities including accommodation, catering, conferences, and other services rendered. It is recognised in the period to which it relates.

Cambridge Bursary Scheme

Payment of the Cambridge Bursaries to eligible students is made directly by the Student Loans Company (SLC). The College reimburses the SLC for the full amount and the University of Cambridge and other Colleges pay their shares to the College. The gross payment made to eligible students is shown within education expenditure and the contribution from the University and other Colleges is shown as income within academic fees and charges.

The net payment of £49k in 2023-24 is shown within the Consolidated Statement of Comprehensive Income and Expenditure as follows:

Income (see note 1) £374k Expenditure (see note 4) £423k

Foreign currency translation

Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at year end rates or, where there are forward foreign exchange contracts, at contract rates. The resulting exchange differences are dealt with in the determination of the comprehensive income and expenditure for the financial year.

Non-current assets

Freehold land and buildings

Land is included at deemed cost, being its fair value on the date of transition to FRS102. Land is not depreciated as it is considered to have an indefinite useful life.

Buildings are stated at cost less accumulated depreciation. Costs incurred after initial purchase or construction are capitalised to the extent that they increase the expected future benefit to the College. Buildings and capital improvements are depreciated on a straight-line basis over their expected useful economic life of 20-50 years (2% - 5% per annum).

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.

Equipment

Assets are capitalised and depreciated over their expected useful life as follows:

Furniture and fittings 10 years (10% per annum) General equipment 5 years (20% per annum) Computer equipment 4 years (25% per annum)

Leased assets

The College does not currently have any assets acquired under finance leases. Rental costs under operating leases are charged to expenditure in equal amounts over the periods of the leases.

Investments

Fixed asset and endowment asset investments 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.

Annual Report and Financial Statements for the year ended 30 June 2024

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued)

Stocks

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

Provisions

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

Contingent assets and liabilities

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.

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.

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

Financial instruments

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

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

Financial assets

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

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

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

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

Annual Report and Financial Statements for the year ended 30 June 2024

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued)

Financial instruments (continued)

Financial liabilities

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

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

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

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

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

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

Taxation

The College is a registered charity (number 1138143) and also a charity within the meaning of Section 467 of the Corporation Tax Act 2010. Accordingly, the College is exempt from taxation in respect to income or capital gains received within the categories covered by Sections 478 to 488 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes.

The College receives no similar exemption in respect of 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.

Pension costs

The College participates in two defined benefit type schemes, the Cambridge Colleges Federated Pension Scheme (CCFPS) and the Universities Superannuation Scheme (USS); and one defined contribution scheme (Aviva).

The CCFPS is a defined benefit scheme with the assets held in a separate trustee-administered fund. The College is able to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and a valuation is obtained as at 30 June annually. The amount charged to expenditure represents the amount calculated under FRS102 guidelines and the College’s net liability is shown in the Balance Sheet .

Annual Report and Financial Statements for the year ended 30 June 2024

STATEMENT OF PRINCIPAL ACCOUNTING POLICIES (continued)

Pension costs (continued)

The USS 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 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 FRS102 ‘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 expenditure represents the contributions payable to the scheme. Where a scheme valuation determines that the scheme is in deficit on a technical provisions basis (as was the case following the 2020 valuation), the trustee of the scheme must agree a Recovery Plan that determines how each employer within the scheme will fund the overall deficit. The College recognises a liability for the contributions payable that arise from such an agreement (to the extent that they relate to a deficit) with related movements being recognised in expenditure.

The College contributes to a defined contribution pension scheme (Aviva). For defined contribution schemes the amount charged to expenditure is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either debtors or creditors in the Balance Sheet.

Employment benefits

Short term employment benefits such as salaries and holiday pay are recognised as an expense in the year in which the employees render service to the College. Any unused benefits are accrued and measured at 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.

Going concern

The Trustees consider that the Group will have sufficient resources to meet its liabilities as they fall due for the foreseeable future and therefore have continued to adopt the going concern basis in preparing the financial statements.

Annual Report and Financial Statements for the year ended 30 June 2024

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of the College’s accounts requires management to make judgements, estimates and assumptions that affect about the application of accounting policies and reported amounts of assets and liabilities and income and expenses that are not readily apparent from other sources. These judgements, estimates and associated assumptions are based on historical experience and other factors, including expectations of future events, which are considered to be reasonable under the circumstances. Actual results may differ from these estimates.

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

Income recognition

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

Useful lives of fixed assets

Property and equipment represent a significant proportion of the College’s total assets. The estimated useful lives can therefore 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 fixed assets are shown in note 9.

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 debtor, the age profile of the debt and the nature of the amount due.

Retirement benefit obligations

The costs of defined benefit pension plans 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 20.

Universities Superannuation Scheme (USS)

FRS102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as USS. The accounting for a multi-employer scheme, where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit, results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting change is recognised in comprehensive expenditure in accordance with section 28 of FRS102.

At 31 June 2023, the College’s balance sheet included a liability of £873k for future contributions payable under the deficit recovery agreement which was concluded on 30 September 2021 following the 2020 valuation when the scheme was in deficit. No deficit recovery plan was required from the 2023 valuation because the scheme was in surplus. Changes to contribution rates were implemented from 1 January 2024 and from that date the College was no longer required to make deficit recovery contributions. The remaining liability of £861k was released to the Income and Expenditure account. Further details are set out in notes 15 and 20.

Annual Report and Financial Statements for the year ended 30 June 2024

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME AND EXPENDITURE

For the year ended 30 June Note Income Academic fees and charges 1 Accommodation, catering, and conferences 2 Investment income 3 Total income before donations and endowments Donations New endowments Capital grant from Colleges Fund Other capital grants for assets Total income Expenditure Education 4 Accommodation, catering, and conferences 5 Other expenditure 6 Change in USS deficit recovery provision 8, 15 Total expenditure 7 Surplus / (deficit) before other gains and losses Gain / (loss) on investments 10 Surplus / (deficit) for the year Other comprehensive income Actuarial gain/(loss) in respect of pension schemes 15 Total comprehensive income for the year	2024 Unrestricted Restricted Endowment Total £’000 £’000 £’000 £’000 4,337 374 - 4,711 4,390 - - 4,390 2,020 368 - 2,388 10,747 742 - 11,489 197 652 - 849 - - 2,028 2,028 - - 928 928 - 3 - 3 10,944 1,397 2,956 15,297 4,296 1,111 - 5,407 5,614 - - 5,614 769 52 - 821 (861) - (861) 9,818 1,163 - 10,981 1,126 234 2,956 4,316 738 113 1,503 2,354 1,864 347 4,459 6,670 152 - - 152 2,016 347 4,459 6,822	2023 Unrestricted Restricted Endowment Total £’000 £’000 £’000 £’000 4,155 270 - 4,425 3,999 - - 3,999 1,712 292 - 2,004
		9,866 562 - 10,428 92 529 - 621 - - 1,636 1,636 768 - - 768 - 48 - 48
		10,726 1,139 1,636 13,501
		3,891 789 - 4,680 5,209 - - 5,209 719 33 - 752 16 - - 16
		9,835 822 - 10,657
		891 317 1,636 2,844 33 9 105 147
		924 326 1,741 2,991 (146) - - (146)
		778 326 1,741 2,845

Annual Report and Financial Statements for the year ended 30 June 2024

CONSOLIDATED STATEMENT OF CHANGES IN RESERVES

For the year ended 30 June Balance at 1 July 2022 Surplus / (deficit) for the year Other comprehensive income Release of restricted capital funds spent in the year Balance at 30 June 2023 Surplus / (deficit) for the year Other comprehensive income Release of restricted capital funds spent in the year Balance at 30 June 2024	Unrestricted Restricted Endowment Total £’000 £’000 £’000 £’000 44,784 3,388 30,283 78,455 924 326 1,741 2,991 (146) - - (146) 3 (3) - -
	45,565 3,711 32,024 81,300 1,864 347 4,459 6,670 152 - - 152 41 (41) - -
	47,622 4,017 36,483 88,122

Annual Report and Financial Statements for the year ended 30 June 2024

CONSOLIDATED AND COLLEGE BALANCE SHEETS

As at 30 June Note Non-current assets Fixed assets 9 Investments 10 Total non-current assets Current assets Stocks Trade and other receivables 11 Cash and cash equivalents 12 Total current assets Creditors: amounts falling due within one year 13 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 14 Provisions Pension provisions 15 Total net assets Represented by: Restricted reserves Income and expenditure reserve - endowment 16 Income and expenditure reserve - restricted 17 Unrestricted reserves Income and expenditure reserve - unrestricted Total reserves	2024 2024 2023 2023 Group College Group College £’000 £’000 £’000 £’000 40,575 40,575 38,544 38,544 48,495 48,495 49,276 49,276
	89,070 89,070 87,820 87,820
	55 55 47 47 1,069 1,130 1,320 1,346 11,722 11,570 6,789 6,729
	12,846 12,755 8,156 8,122 (1,452) (1,361) (1,321) (1,287)
	11,394 11,394 6,835 6,835
	100,464 100,464 94,655 94,655 (11,125) (11,125) (11,123) (11,123) (1,217) (1,217) (2,232) (2,232)
	88,122 88,122 81,300 81,300
	36,483 36,483 32,024 32,024 4,017 4,017 3,711 3,711 47,622 47,622 45,565 45,565
	88,122 88,122 81,300 81,300

The financial statements were approved by the Governing Body on 13 November 2024 and signed on its behalf by:

Joanna Cheffins Bursar

Annual Report and Financial Statements for the year ended 30 June 2024

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 30 June Note Cash flow from operating activities: Surplus / (deficit) for the year Adjustment for non-cash items: - depreciation 9 - pension costs less contributions payable - amortisation of placement arrangement fees - (gain) / loss on investments 10 - (increase) / decrease in stocks - (increase) /decrease in trade and other receivables - increase / (decrease) in creditors - increase / (decrease) in provisions Adjustment for investing or financing activities: - investment income 3 - new endowments 16 - capital grants for assets 17 - interest payable 6 Net cash inflow from operating activities Cash flows from investing activities: Investment income 3 New endowments 16 Endowment funds invested 10 Receipts from disposal of non-current asset investments 10 Capital grants for assets 17 Payments made to acquire fixed assets 9 Total cash flows from investing activities Cash flows from financing activities: Interest paid 6 Total cash flows from financing activities Increase / (decrease) in cash and cash equivalents in the year Cash and cash equivalents at beginning of the year 12 Cash and cash equivalents at end of the year 12	2024 £’000 6,670 1,162 10 2 (2,354) (8) 251 131 (873) (2,388) (2,956) (3) 328 (28) 2,388 2,956 (2,706) 5,841 3 (3,193) 5,289 (328) (328) 4,933 6,789 11,722	2023 £’000 2,991 1,115 2 3 (147) 8 (332) 254 (23) (2,004) (1,636) (48) 328
		511
		2,004 1,636 (1,648) 1,343 48 (1,218)
		2,165
		(328)
		(328)
		2,348
		4,441 6,789

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

1 Academic fees and charges Fee income Fee income received at the regulated undergraduate rate (a) Fee income received at the unregulated undergraduate rate (b) Fee income received at the postgraduate rate (c) Other income Research Fellow support Cambridge Bursaries Teaching and other income College courses Total	2024 £’000 495 915 2,885 4,295 - 374 17 25 4,711	2023 £’000 479 933 2,699
		4,111 - 270 20 24
		4,425

(a) This rate is received for UK students who are eligible for Student Loans Company loans. Such students are sometimes referred to as ‘publicly funded’. The total rate is set by the University up to a limit set by the Government, and the College receives a 50% share.

(b) This rate is paid by Overseas students and those UK students not eligible for Student Loans Company loans. Such students are sometimes referred to as ‘privately funded’. This rate is set by the College.

2 Accommodation, catering, and conferences income Accommodation College members Conferences Catering College members Conferences Total 3 Investment income Income from: Unquoted securities - unit trust - endowment assets - fixed asset investments Cash Total invested in Cambridge University Endowment Fund units	2024 £’000 3,227 510 473 180 4,390 2024 £’000 1,402 580 406 2,388	2023 £’000 3,078 238 571 112
		3,999
		2023 £’000 1,244 617 143
		2,004

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

4 Education expenditure Teaching Tutorial Admissions Research Scholarships and awards Cambridge Bursaries Other educational facilities College courses Total 5 Accommodation, catering, and conferences expenditure Accommodation College members Conferences Catering College members Conferences Total 6 Other expenditure Alumni relations Loan interest Pension schemes’ finance charges (see note 15) Total	2024 £’000 1,287 1,126 403 412 866 423 879 11 5,407 2024 £’000 3,325 358 1,695 236 5,614 2024 £’000 398 328 95 821	2023 £’000 1,179 1,028 367 375 617 320 790 4
		4,680
		2023 £’000 3,188 178 1,729 114
		5,209
		2023 £’000 348 328 76
		752

Expenditure on all activities in notes 4, 5 and 6 includes both direct costs and an allocation of overheads.

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

7a Analysis of expenditure by activity Note Education 4 Accommodation, catering, and conferences 5 Other 6 Change in USS deficit recovery provision 8	Staff costs (note 8) Other operating expenses Depreciation 2024 2024 2024 £’000 £’000 £’000 2,437 2,629 341 2,857 1,941 816 287 529 5 (861) - - 4,720 5,099 1,162	Total 2024 £’000 5,407 5,614 821 (861)
		10,981

Expenditure includes fundraising costs of £398k in addition to the costs of alumni relations which are disclosed in note 6.

Education 4 Accommodation, catering, and conferences 5 Other 6 Change in USS deficit recovery provision 8	Staff costs (note 8) Other operating expenses Depreciation 2023 2023 2023 £’000 £’000 £’000 2,221 2,132 327 2,613 1,813 783 245 502 5 16 - - 5,095 4,447 1,115	Total 2023 £’000 4,680 5,209 752 16
		10,657

Expenditure includes fundraising costs of £310k in addition to the costs of alumni relations which are disclosed in note 6.

Auditor’s remuneration	2024	2023
Other operating expenses include:	£’000	£’000
Audit fees payable to the Group’s external auditor (including VAT)	33	30
Other fees payable to the Group’s external auditor (including VAT)	1	1

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

8a Staff costs Fellows Other Staff Total 2024 £’000 £’000 £’000 Salaries 932 3,753 4,685 National Insurance 88 321 409 Pension costs 131 392 523 Net change in USS deficit recovery provision (see note 15) Subtotal of pension costs (see note 8b) (477) (346) (420) (28) (897) (374) 674 4,046 4,720 Average staff numbers (full-time equivalents): Academic 11 1 12 Non-academic 3 115 118 14 116 130	Total 2023 £’000 4,239 380 528 (52) 476
	5,095
	12 111
	123

There were 116 Fellows (excluding the President) in the Governing Body as at 1 December 2023, 46 of whom were stipendiary, representing 14 full-time equivalent College Fellows included above.

The number of officers and employees of the College who received remuneration in the following ranges was:

		2024	2023
		Number	Number
£100,001	- £110,000	2	3
£110,001	- £120,000	-	1
£120,001	- £130,000	1	-
£130,001	- £140,000	-	-
£140,001	- £150,000	-	-
£150,001	- £160,000	1	-

Remuneration includes salary, employer’s national insurance contributions, employer’s pension contributions, plus any taxable benefits either paid, payable or provided, gross of any salary sacrifice arrangements.

Key management personnel and Trustees

Key management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the College. The key management personnel are the members of the College Council, who act as the Trustees of the charity.

The aggregated remuneration (salary, employer’s national insurance contributions, employer’s pension contributions, plus any taxable benefits either paid, payable or provided, gross of any salary sacrifice arrangements) paid to key management personnel was:

College Officers_ex officio_ Fellows elected by the Governing Body	2024 £’000 418 54 472	2023 £’000 441 53
		494

The Trustees received no remuneration in their capacity as Trustees.

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

8b Pension Costs

The total pension cost included in staff costs for the year was:

The total	pension cost included in staff costs for the year was:
USS CCFPS Aviva NOW	Employer Contributions Provisions Total 2024 Employer Contributions Provisions Total 2023 £’000 £’000 £’000 £’000 £’000 £’000 223 (897) (674) 237 (52) 185 168 (77) 91 174 (61) 113 141 - 141 - - - 68 - 68 178 - 178
	600 (974) (374) 589 (113) 476

Based on the 2023 valuation of the Universities Superannuation Scheme (USS), the impact of the net change in the USS deficit recovery provision on staff costs is a credit of £897k (2023: £52k). This comprises a non-cash credit resulting from the change in assumptions, including the discount rate, of £861k (2023: £16k charge) and cash contributions made to reduce the deficit in the year of £36k (2023: £68k).

9 Tangible fixed assets Group and College Cost or valuation At beginning of year Additions at cost Disposals At end of year Depreciation At beginning of year Charge for the year Disposals At end of year Net book value As at 30 June 2024 As at 30 June 2023	Freehold land and buildings Fixtures and equipment Assets in the course of construction Total 2024 £’000 £’000 £’000 £’000 51,154 5,637 422 57,213 4 806 2,383 3,193 - (381) - (381) 51,158 6,062 2,805 60,025 14,470 4,199 - 18,669 743 419 - 1,162 - (381) - (381) 15,213 4,237 - 19,450 35,945 1,825 2,805 40,575 36,684 1,438 422 38,544	Total 2023 £’000 56,048 1,218 (53)
		57,213
		17,607 1,115 (53)
		18,669

The declared value of freehold buildings for insurance purposes as at 30 June 2024 was £68,801,361 (2023: £66,989,313).

At 30 June 2024, freehold land and buildings included £22.0m (2023: £22.0m) in respect of freehold land which is not depreciated.

which is not depreciated.
Capital commitments	Group and College
	2024	2023
	£’000	£’000
Capital expenditure contracted but not provided for	3,292	-

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

10 Non-current investments Balance at beginning of year Additions Disposals Gain / (loss) Balance at end of year Represented by: Unquoted securities - unit trust Unquoted securities - equities Total Analysis by asset: Endowments - permanent Endowments - expendable Fixed asset investments Total 11 Trade and other receivables Members of the College Amounts due from subsidiary undertakings Other receivables Prepayments and accrued income Total 12 Cash and cash equivalents Short-term money market investments Bank deposits Bank current accounts Cash in hand Total cash and cash equivalents Analysis by asset: Endowments – permanent capital Endowments – restricted Other restricted reserves Other cash and cash equivalents Total	Group 2024 £’000 231 1 67 770 1,069 Group 2024 £’000 9,000 2,566 155 1 11,722 266 279 1,174 10,003 11,722	College 2024 £’000 231 66 63 770 1,130 College 2024 £’000 9,000 2,566 3 1 11,570 266 279 1,174 9,851 11,570	Group and College 2024 £’000 2023 £’000 49,276 48,824 2,706 1,648 (5,841) (1,343) 2,354 147 48,495 49,276 48,356 48,962 139 314 48,495 49,276 36,217 32,021 2,545 2,421 9,733 14,834 48,495 49,276 Group 2023 £’000 College 2023 £’000 246 246 1 79 153 101 920 920 1,320 1,346 Group 2023 £’000 College 2023 £’000 4,900 4,900 1,829 1,829 60 - - - 6,789 6,729 3 3 222 222 1,050 1,050 5,514 5,454 6,789 6,729	Group and College 2024 £’000 2023 £’000 49,276 48,824 2,706 1,648 (5,841) (1,343) 2,354 147 48,495 49,276 48,356 48,962 139 314 48,495 49,276 36,217 32,021 2,545 2,421 9,733 14,834 48,495 49,276 Group 2023 £’000 College 2023 £’000 246 246 1 79 153 101 920 920 1,320 1,346 Group 2023 £’000 College 2023 £’000 4,900 4,900 1,829 1,829 60 - - - 6,789 6,729 3 3 222 222 1,050 1,050 5,514 5,454 6,789 6,729
				49,276
				48,962 314
				49,276
				32,021 2,421 14,834
				49,276
				College 2023 £’000 246 79 101 920
				1,346
				College 2023 £’000 4,900 1,829 - -
				6,729
				3 222 1,050 5,454
				6,729

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

13 Creditors: amounts falling due within one year Trade creditors Members of the College University fees Other creditors (PAYE, NI, VAT) Accruals and deferred income Total 14 Creditors: amounts falling due after mo Bank loan Private placement Private placement arrangement fees Total	Group 2024 £’000 601 216 211 139 285 1,452 re than one year	College 2024 £’000 600 216 211 131 203 1,361	Group 2023 £’000 631 178 162 150 200 1,321 Group 2024 £’000 1,200 10,000 (75) 11,125	College 2023 £’000 631 178 162 141 175
				1,287
				and College 2023 £’000 1,200 10,000 (77)
				11,123

Interest is payable on the bank loan at 4.8%. The loan is repayable in August 2048. Interest is payable on the private placement at 2.7%. The placement is repayable in June 2053. The placement arrangement fees are being amortised over the duration of the placement.

15 Pension provisions (see note 20) Balance at beginning of year Movement in the year: Current service cost Administrative expenses Contributions Net change in underlying assumptions (see note 8) - USS deficit contributions paid - Change in underlying assumptions Other finance costs Actuarial (gain) / loss Balance at end of year	Group CCFPS liability £’000 USS deficit provision £’000 Total 2024 £’000 1,359 873 2,232 93 - 93 16 - 16 (170) - (170) - (36) (36) - (861) (861) 71 24 95 (152) - (152) 1,217 - 1,217	and College Total 2023 £’000 2,107 114 16 (175) (68) 16 76 146
		2,232

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

16 Permanent endowments Balance at beginning of year New endowments Transfers Gain / (loss) on investments Balance at end of year Analysis by purpose: Fellowship Funds Scholarship Funds Prize Funds Hardship Funds Bursary Funds Travel Grant Funds Library Funds Other Funds General Total Analysis by asset: Investments Cash	Group and College Unrestricted permanent Restricted permanent Total 2024 Total 2023 £’000 £’000 £’000 £’000 25,412 6,612 32,024 30,283 942 2,014 2,956 1,636 - - - - 1,191 312 1,503 105 27,545 8,938 36,483 32,024 - 182 182 174 - 6,487 6,487 4,288 - 110 110 104 - 1,286 1,286 1,218 - 129 129 121 - 63 63 60 - 449 449 429 - 232 232 218 27,545 - 27,545 25,412 27,545 8,938 36,483 32,024 27,542 8,675 36,217 32,021 3 263 266 3 27,545 8,938 36,483 32,024	Group and College Unrestricted permanent Restricted permanent Total 2024 Total 2023 £’000 £’000 £’000 £’000 25,412 6,612 32,024 30,283 942 2,014 2,956 1,636 - - - - 1,191 312 1,503 105 27,545 8,938 36,483 32,024 - 182 182 174 - 6,487 6,487 4,288 - 110 110 104 - 1,286 1,286 1,218 - 129 129 121 - 63 63 60 - 449 449 429 - 232 232 218 27,545 - 27,545 25,412 27,545 8,938 36,483 32,024 27,542 8,675 36,217 32,021 3 263 266 3 27,545 8,938 36,483 32,024
		32,024
		174 4,288 104 1,218 121 60 429 218 25,412
		32,024
		32,021 3
		32,024

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

17 Restricted reserves

Group and College

Balance at beginning of year Capital Accumulated income Academic income Investment income New donations New grants Expenditure Capital grants utilised Gain / (loss) on investments Balance at end of year Capital Accumulated income Analysis by purpose: Fellowship Funds Scholarship Funds Prize Funds Hardship Funds Bursary Funds Travel Grant Funds Library Funds Other Funds General Total Analysis by asset: Investments Cash	Capital grants Restricted income Restricted permanent endowment income Expendable endowment Total 2024 £’000 £’000 £’000 £’000 £’000 - - - 2,422 2,422 45 1,023 138 83 1,289 45 1,023 138 2,505 3,711 - 374 - - 374 - 1 269 98 368 - 639 - 13 652 3 - - - 3 - (852) (246) (65) (1,163) (41) - - - (41) - 1 - 112 113 - - - 2,548 2,548 7 1,186 161 115 1,469 7 1,186 161 2,663 4,017 - 125 17 861 1,003 - 907 76 1,227 2,210 - - 7 1 8 - - - 95 95 - 2 8 247 257 - - 2 11 13 - - - - - 7 152 51 221 431 - - - - - 7 1,186 161 2,663 4,017 - 19 - 2,545 2,564 7 1,167 161 118 1,453 7 1,186 161 2,663 4,017	Total 2023 £’000 2,404 984
		3,388 270 292 529 48 (822) (3) 9 2,422 1,289
		3,711
		985 1,876 13 91 239 12 - 495 -
		3,711
		2,439 1,272
		3,711

Some endowments are classified as expendable rather than permanent to reflect the wishes of the donor: when the donor expects their donation to be retained for the benefit of the College with a view to it having an impact over a number of years while also providing flexibility to spend capital as required.

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

18 Consolidated reconciliation and analysis of net debt

				Other non-
		At 1 July		cash	At 30 June
		2023	Cash flows	changes	2024
		£’000	£’000	£’000	£’000
	Cash and cash equivalents	6,789	4,933	-	11,722
	Borrowings due after more than one year
	Unsecured loans	(11,123)	-	(2)	(11,125)
	Net total	(4,334)	4,933	(2)	597
19	Financial instruments			2024	2023
				£’000	£’000
	Financial assets
	Financial assets at fair value through Statement of Comprehensive Income
	Other investments			48,495	49,276
	Financial assets that are debt instruments measured at amortised cost
	Cash and cash equivalents			11,722	6,789
	Other debtors			299	400
	Financial liabilities
	Financial liabilities measured at amortised cost
	Loans			11,125	11,123
	Trade creditors			601	631
	Other creditors			566	490

The fair values of the assets held at fair value at the balance sheet date are determined using quoted prices.

20 Pension schemes

The College participates in two defined benefit schemes, the Cambridge Colleges Federated Pension Scheme (CCFPS) and the Universities Superannuation Scheme (USS).

20a Cambridge Colleges Federated Pension Scheme

The liabilities of the plan have been calculated at 30 June for the purposes of FRS102 using a valuation system designed for the Management Committee, acting as Trustee of the CCFPS, 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:

	2024	2023
	% p.a.	% p.a.
Discount rate	5.10	5.20
Increase in salaries – to 2030	2.85	3.30
Increase in salaries – from 2031	3.75	3.30
Retail Prices Index (RPI) assumption	3.35	3.40*
Consumer Prices Index (CPI) assumption – to 2030	2.35	2.80*
Consumer Prices Index (CPI) assumption – from 2031	3.25	2.80*
Pension increases in payment (RPI max 5.0% p.a.)	3.15	3.30*
Pension increases in payment (CPI max 2.5% p.a.)	2.00	2.05*

For 1 year only, we assumed that RPI will be 9% and CPI will be 7%. The caps under the Rules are applied to assumed pension increases.

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

20a Cambridge Colleges Federated Pension Scheme (continued)

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

Male aged 65 now has a life expectancy of 21.4 years (previously 21.4 years); Female aged 65 now has a life expectancy of 23.9 years (previously 23.9 years);

Male aged 45 now and retiring in 20 years has a life expectancy of 22.6 years on retirement (previously 22.6 years);

Female aged 45 now and retiring in 20 years has a life expectancy of 25.3 years on retirement (previously 25.3 years).

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

	Male	Female
Active Members – Option 1 Benefits	64	64
Deferred Members – Option 1 Benefits	63	62

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

The amounts recognised in the balance sheet as at 30 June are as follows:

Present value of plan liabilities Market value of plan assets Net defined benefit liability	2024 2023 £’000 £’000 (5,584) (5,528) 4,367 4,169
	(1,217) (1,359)

The amounts recognised in expenditure for the year ending 30 June are:

Current service cost Administrative expenses Interest on net defined benefit liability Total	2024 2023 £’000 £’000 93 114 16 16 71 47
	180 177

Changes in the present value of the plan liabilities for the year ending 30 June are:

Present value of plan liabilities at beginning of year Current service cost Employee contributions Benefits paid Interest on plan liabilities Actuarial (gains) / losses Present value of plan liabilities at end of year	2024 2023 £’000 £’000 5,528 6,112 93 114 10 10 (223) (265) 284 230 (108) (673)
	5,584 5,528

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

20a Cambridge Colleges Federated Pension Scheme (continued)

Changes in the fair value of the plan assets for the year ending 30 June are:

Market value of plan assets at beginning of year Contributions paid by the College Employee contributions Benefits paid Administrative expenses paid Interest on plan assets Return on assets, less interest included in income and expenditure Market value of plan assets at end of year Actual return on plan assets	2024 2023 £’000 £’000 4,169 4,901 170 175 10 10 (223) (265) (19) (20) 213 183 47 (815)
	4,367 4,169
	260 (632)

The major categories of plan assets as a percentage of total plan assets at 30 June are as follows:

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

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:

Return on assets less interest included in comprehensive income Expected less actual plan expenses Experience gains and losses arising on plan liabilities Changes in assumptions underlying the present value of plan liabilities Re-measurement of net defined benefit liability recognised in OCI	2024 2023 £’000 £’000 47 (815) (3) (4) 74 (702) 34 1,375
	152 (146)

Movements in the net defined benefit liability during the year ending 30 June are:

Net defined benefit liability at beginning of year Recognised in expenditure Contributions paid by the College Re-measurement of net defined benefit liability recognised in OCI Net defined benefit liability at end of year	2024 2023 £’000 £’000 (1,359) (1,211) (180) (177) 170 175 152 (146)
	(1,217) (1,359)

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.

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

20a Cambridge Colleges Federated Pension Scheme (continued)

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 3 June 2024 and are as follows:

annual contributions of not less that £173,955 p.a. payable for the period to 31 March 2030.

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

20b Universities Superannuation Scheme

The total amount included in the consolidated statement of comprehensive income and expenditure, including changes in the deficit provision, is a credit of £650,082 (2023: charge of £214,589).

Deficit recovery contributions due within one year for the institutions are £nil (2023: £74,214).

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%. No deficit recovery plan was required under the 2023 valuation because the scheme was in surplus on a technical provisions basis. The College was no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision to the Comprehensive Income and Expenditure account.

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

Since the College cannot identify its share of 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 available on the USS website.

CPI assumption Term dependant 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. from 2030 Pension increases (subject to Benefits with no cap: CPI assumption plus 3bps. a floor of 0%) 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 assumptions 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:

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS For the year ended 30 June

20b Universities Superannuation Scheme (continued)

2023 valuation

Mortality base table 101% of S2PMA ‘light’ for males and 95% of S3PFA for females Future improvements CMI 2021 with a smoothing parameter of 7.5, an initial addition of 0.4% p.a., to mortality 10% w2020 and w2021 parameters, and a long-term improvement rate of 1.8% p.a. for males and 1.6% p.a. for females

The current life expectancies (in years) on retirement at age 65 are:

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

21 Subsidiary undertakings

The College’s subsidiary undertakings, all of which are companies incorporated in the United Kingdom, are as follows:

re as follows:
Undertaking	Activity	Holding	%
Wolfson College Cambridge	The provision of conferences	1 ordinary share of	100%
Enterprises Limited	and events at Wolfson	£1
	College, Cambridge
Wolfson College Development	Dormant	1,000 ordinary	100%
Limited		shares of £1 each
Lee Library Limited	Dormant	2 ordinary shares of	100%
		£1 each

22 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 member of the College Council 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. All salaries are reviewed annually by the Human Resources Committee.

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

22 Related party transactions (continued)

The salaries paid to Trustees in the year, for duties other than serving as a Trustee, are summarised in the table below:

able 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 £90,000 £90,001 £100,000 £100,001 £110,000 Total	2024 Number 2023 Number 3 3 3 2 - 1 - - - - - - 1 - - 3 2 1 1 - - -
	10 10

The total Trustee salaries were £378,083 for the year (2023: £369,530).

The Trustees were also paid other taxable benefits (including associated employer National Insurance contributions and employer contributions to pensions) which totalled £94,021 for the year (2023: £124,290).

Details of subsidiary undertakings are disclosed in note 21. 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.

23 US Department of Education Financial Responsibility Supplemental Schedule

In satisfaction of its obligations to facilitate students’ access to US federal financial aid, the College is required, by the US Department of Education, to present the following Supplemental Schedule in a prescribed format.

The amounts presented within the schedules have been:

prepared under the historical cost convention, subject to the revaluation of certain fixed assets.
prepared using United Kingdom generally accepted accounting practice, in accordance with Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice: Accounting for Further and Higher Education (2019 edition).
presented in pounds sterling.

The schedules set out how each amount disclosed has been extracted from the financial statements. As set out above, the accounting policies used in determining the amounts disclosed are not intended to and do not comply with the requirements of accounting principles generally accepted in the United States of America.

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS For the year ended 30 June

23 US Department of Education Financial Responsibility Supplemental Schedule (continued)

Primary Reserve Ratio

Primary Reserve Ratio
Page Primary statement or note and line item 27 Balance Sheet – Unrestricted reserves 27 Balance Sheet – Restricted reserves 27 Balance Sheet – Restricted reserves 27 Balance Sheet – Fixed assets 27 Balance Sheet – Pension provisions 27 Balance Sheet – Creditors falling due after one year 35 Note 14 – Private Placement 25 Statement of Comprehensive Income and Expenditure – Unrestricted total expenditure Equity Ratio Page Primary statement / note and line item 27 Balance Sheet – Unrestricted reserves 27 Balance Sheet – Restricted reserves 27 Balance Sheet – Non-current assets 27 Balance Sheet – Current assets	Expendable Net Assets Net assets without donor restrictions Net assets with donor restrictions Net assets with donor restrictions restricted in perpetuity Property plant and equipment Post-employment and pension liabilities Long term debt for long term purposes Long term debt not for purchase of property Total Expenses and Losses Without Donor Restrictions Total operating expenses Modified Net Assets Net assets without donor restrictions Net assets with donor restrictions Modified Assets Total non-current assets Total current assets	2024 2023 £’000 £’000 47,622 45,565 40,500 35,735 (40,500) (35,735) (40,575) (38,544) 1,217 2,232 11,125 11,123 (10,000) (10,000)
		9,389 10,376
		9,818 9,835
		9,818 9,835
		2024 2023 £’000 £’000 47,622 45,565 40,500 35,735
		88,122 81,300
		89,070 87,820 12,846 8,156
		101,916 95,976

Annual Report and Financial Statements for the year ended 30 June 2024

NOTES TO THE ACCOUNTS

For the year ended 30 June

23 US Department of Education Financial Responsibility Supplemental Schedule (continued)

Net Income Ratio

Page Primary statement / note and line item 26 Statement of Changes in Reserves – Unrestricted reserves 26 Statement of Changes in Reserves – Unrestricted reserves 26 Statement of Changes in Reserves – Unrestricted reserves 25 Statement of Comprehensive Income and Expenditure Unrestricted total income 25 Statement of Comprehensive Income and Expenditure – Unrestricted investment income 26 Statement of Changes in Reserves – Unrestricted reserves	Change in Net Assets Without Donor Restrictions Surplus / (deficit) from income and expenditure statement Other comprehensive income Release of restricted capital funds spent in the year Total Revenue and Gains Without Donor Restrictions Total operating revenue Investment return appropriated for spending Release of restricted capital funds spent in the year	2024 2023 £’000 £’000 1,864 924 152 (146) 41 3
		2,057 781
		10,944 10,726 (2,020) (1,712) 41 3
		8,965 9,017