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2021-08-31-accounts

2021

Page 1

WINCHESTER COLLEGE REPORT AND FINANCIAL STATEMENTS

Contents Page
Fellows, Officers and Advisers 3
Report of the Warden and Fellows 4
Independent Auditor’s Report to the Warden and Fellows of Winchester College 27
Consolidated Statement of Financial Activities 30
Consolidated and College Balance Sheets 31
Consolidated Cash Flow Statement 32
Notes to the Financial Statements 34

Page 2

WINCHESTER COLLEGE FELLOWS, OFFICERS AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2021

The Visitor

The Lord Bishop of Winchester

GOVERNING BODY (The Warden and Fellows)

The Fellows of Winchester College who held office during the year and subsequently were:

Warden (Chairman) Sir Richard Stagg KCMG Sub-Warden (Vice-Chairman) Andrew Sykes MA Fellows Dr Peggy Frith MA, MD, FRCP, FRCOphth ( until 20 March 2021 ) Major General Jonathan Shaw CB, CBE, MA Clarissa Farr MA Andrew Joy MA Nicholas Ferguson CBE, FSA Scot, BSc, MBA William Holland BA, FCA Dr William Poole MA, DPhil, FSA Miles Young MA The Hon Sir Stephen Cobb Hon LLD Dr Magnus Ryan MA, PhD Roland Turnill MA Laura Sanderson MA, MPhil (from 5 December 2020) Alison Mayne MA, PGCE (from 6 May 2021)

Fellow biographies: https://www.winchestercollege.org/welcome/governance-and-our-policies

OFFICERS

Headmaster Timothy Roderick Hands BA, AKC, DPhil, FKC Bursar and Secretary to the Governing Body Paresh Thakrar BA (Hons), MA (Cantab), MBA

Bankers

National Westminster Bank plc, 105 High Street, Winchester, Hampshire, SO23 9AW

Solicitors

Farrer & Co LLP, 66 Lincoln’s Inn Fields, London, WC2A 3LH DAC Beachcroft LLP, Portwall Place, Portwall Lane, Bristol, BS99 7UD Warner & Richardson, 29 Jewry Street, Winchester, Hampshire, SO23 8RR Addleshaw Goddard LLP, 60 Chiswell Street, London, EC1Y 4AG

Auditor

Crowe U.K. LLP, 55 Ludgate Hill, London, EC4M 7JW

Investment Advisers

Partners Capital LLP, 5[TH] Floor, 5 Young Street, London, W8 5EH Savills PLC, 33 Margaret Street, London, W1G 0JD

Insurance Brokers

Marsh Limited, 1 Tower Place West, Tower Place, London, EC3R 5BU

Principal Address

Winchester College, College Street, Winchester, Hampshire, SO23 9NA

Page 3

WINCHESTER COLLEGE REPORT OF THE WARDEN AND FELLOWS

FOR THE YEAR ENDED 31 AUGUST 2021

WHO WE ARE

‘Preparing our pupils for life, not just examination success’

Winchester College, founded by William of Wykeham in 1382, is one of the country’s oldest and most distinguished schools. An independent boarding school in Hampshire for boys aged 13-18, the College will welcome girls and boys as day pupils in to our Sixth Form from September 2022 and girl boarders from September 2024.

A Winchester education is renowned for academic excellence, with pupils exploring subjects in depth well beyond the curriculum. We seek to instil a lifelong love of learning and an enduring desire to know more. Alongside preparation for public examinations, our unique non-examined area of study, known as Div, creates a place for pupils to think, question and converse, encouraging them to remain actively curious throughout their lives.

Rich in ancient heritage and set beside the River Itchen on the edge of a National Park, pupils enjoy extensive extracurricular opportunities, surrounded by friends and supported by imaginative and inspiring teachers.

OUR VISION

‘A leader and influencer of great education on the modern global stage’

Winchester College’s school motto, ‘Manners Makyth Man’ sets the overarching tone for many aspects of life and work at the school. It embodies our determination to play a full role in our wider community; contribute to our society, and to provide a holistic education, encouraging a strong sense of purpose and a commitment to public service. These founding principles guided the Governing Body as it considered how best to prepare the school, and its pupils, for a future of modern leadership on the global stage.

In February 2021, the school published Winchester College in the 21[st] Century , a new vision and significant programme of change for the school. The vision outlined two key areas of focus which were central to the thinking and ambitions of our founder and remain central to the future of the College – Learning and Access.

Learning - Winchester has a wonderful and unique approach to learning, combining intellectual rigour with a focus on subjects and issues not covered by public exams. It is what makes the school so special and will offer our pupils even greater advantages in the future than in the past.

Within this context, we have set out a renewed educational emphasis on the global forces which have shaped the modern world. This will mean an increased focus on encouraging a global mind-set among our pupils and ensuring that the school’s enduring qualities of creativity, collaboration and innovation stretch beyond our immediate borders.

Access - The Governing Body would like as many children as possible who would benefit from a Winchester education to come to the school – irrespective of financial means or circumstance. We want to continue to attract the brightest pupils, to help them achieve outstanding academic results and support their future ambitions. That is why we are increasing our bursary provision by 25% to support 150 pupils by 2024 and will open the Sixth Form to day pupils and girls in September 2022 . This aim also underpins our plan to develop a new network of educational partnerships with state schools (building on those we already have), to identify ways we can support their pupils to fulfil their potential: we believe the online provision we developed during the pandemic will bring significant benefits to this programme.

The Governing Body is confident that the changes outlined in the vision will enable the school to build on its unique approach to education, based on values which have endured for centuries.

Sir Richard Stagg, Warden of Winchester College

Read the vision in full

Page 4

WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

A UNIQUE SCHOOL YEAR

The past academic year has been a year like no other, with COVID-19 posing a variety of new and complex challenges. In spite of these ever-changing circumstances, I am incredibly proud of all that the school community has achieved.

COVID-19 response

We have benefitted hugely from the work of Dr John Cullerne, the school’s Undermaster who has been in charge of Winchester College’s COVID-19 response. Dr Cullerne developed a successful and ground-breaking pilot partnership with Diagnostics for the Real World (DRW), the manufacturers of the Samba machine whose testing capabilities allowed us to test pupils on site, with results returned in 2 hours.

Winchester College was one of the first boarding schools to partner with DRW, ensuring that pupils and colleagues could quickly return to the classroom after testing.

Over the course of 6 days in November 2020, 692 tests were carried out using the Samba machine - a remarkable achievement. In addition, a significant programme of additional precautionary measures was established. One-way systems were put in place across the campus; boarding houses and classrooms were modified to allow for house bubbles, social distancing and the provision of hand sanitising stations. Most recently, we have become part of the Hampshire and Isle of Wight Saliva Testing programme, where there is a 96% participation rate among our pupils.

Remote learning

We implemented a rapid and successful shift to remote learning where, over the course of lockdown, the school community conducted 4,155 Microsoft Team meetings; 197,420 minutes of screen sharing and 947,536 minutes of video calls.

Exam results

The uncertainty surrounding public examinations and the implementation of Teacher Assessed Grades did not detract from some truly outstanding academic results:

Individual pupil achievements included; 3 Golds in the UK’s Chemistry Olympiad; a Gold award in the Cambridge School’s Eco Council’s 2021 Eco-Challenge; 3[rd] worldwide in the independent category of the International Economics Olympiad – the highest scoring UK contestant and, in sport, a new British Rowing record in the 13-14 age range.

I am indebted to my colleagues across the school for their perseverance, support and commitment to ensuring a continuous provision of education during the most extraordinary of times.

Dr Tim Hands, Headmaster of Winchester College

Page 5

WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

OUR TIMELINE

Despite the challenges posed by the COVID-19 pandemic, we have made significant progress towards the objectives set out in the school’s new Vision, as outlined by the Warden, which build upon the Charitable Objects of the school (page 16).

Short-term milestones achieved (2020 – 2021)

Learning

Access

Developing the School Site

Future milestones (2022 – 2025)

2022

2023

2024

Page 6

REPORT OF THE WARDEN AND FELLOWS (continued)

WINCHESTER COLLEGE

FOR THE YEAR ENDED 31 AUGUST 2021

PUBLIC BENEFIT

The Warden and Fellows are mindful of the long-standing drive to provide public benefit, which has more recently been restated in the requirements of the Charities Act 2011. They have also given careful consideration to the Charity Commission’s guidance on public benefit, together with its supplemental guidance on fee-charging.

Financial Support

‘ Continuing to attract the brightest pupils, irrespective of financial means or circumstance.’

Financial support continues to form a central pillar of the school’s access strategy. Awards offered to each family reflect their individual circumstances, ranging from 5% to 100% of fees, with some awards also covering associated expenses. Overall 164 pupils received fee awards totalling £3,334,000, representing 12% of the school’s gross fee income , of which 121 pupils received means-tested bursary assistance.

The average bursary award per pupil was 66% of the school fee. 93 pupils received support equivalent to 50% or more of the school fee; among these 56 pupils received awards of 80% or more and 11 pupils received awards of 100%.

Educational Partnerships

‘ Supporting children to fulfil their potential’

Winchester College enjoys strong links with many local state primary and secondary schools, providing mutually beneficial opportunities to learn from teaching staff and share resources. This includes providing specialist talks and lectures, forest school activities, curriculum-led projects, hands-on sessions in the Treasury Museum, support with university applications and summer educational programmes.

With the appointment of a new Head of Educational Partnerships this year, we are working to diversify and expand the portfolio of schools we work with, developing a truly collaborative approach in identifying local and regional areas where we can offer a series of meaningful programmes. This year we have seen the following take place:

Page 7

WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

Crown and Manor Club

Quiristers at The Pilgrims’ School

The College’s Statutes make provision for 16 boys, called Quiristers, to sing at Chapel services and this inheritance is still maintained.

Heritage and Community

‘Welcoming 15-20,000 members of the public each year”

Winchester College maintains 18 Grade I, 6 Grade II* and over 70 Grade II listed local buildings at no cost to the public purse. Many of these building are of national importance and are available to local residents or visitors to the city through our daily guided tours or through free access to our collections and archives in the Treasury Museum. The College’s visitors also enjoy access via our maintained network of public access routes that criss-cross the College’s sports fields and water-meadows.

Guided Tours & The Treasury

Archives

Fellows’ Library

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WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

Friends of Winchester College

Heritage Open Days

Facilities

Environment, Sustainability & Service

‘A commitment to wider society’

Much of the land cared for by the school is either a public access area, Site of Special Scientific Interest (SSSI) or Special Area of Conservation. The Fallodon Nature Reserve is an SSSI and the main River Itchen with its carriers is a Special Area of Conservation. St. Catherine’s Hill is a public access area and is leased to the Hampshire Wildlife Trust. The school maintains and provides public access to these areas at no cost to the local or national purse.

Environment and Sustainability Advisory Group

The school’s Vision outlines our future commitment to a sustainable local presence, with a BREEAM-excellent Sports Centre and a continued focus on all areas of our carbon footprint via the work of the school’s Environment and Sustainability Advisory Group (ESAG).

The Group advise the Governing Body on setting and delivering the sustainability goals for the College in four areas:

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WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

The Group will focus on:

Over the past year, we have made good progress:

Community Service

Charity

REFERENCE AND ADMINISTRATIVE INFORMATION

Winchester College benefits from a rich history, which dates back to 1382, when William of Wykeham founded the College by Royal Charter of King Richard II, confirmed by later Acts of Parliament. This section provides further information on the history, charitable objects and governance framework, which are woven into the Vision, life and activities of the College.

The Royal Charter, originally signed in 1382, which sets out the College’s charitable objects, was last amended in 1986. The College’s Statutes set out details of the appointment of Fellows, the administration and governance of the College and the powers of investment, and were revised and received approval by HM The Queen in Council in October 2017.

The full title of the charity is ‘The Warden and Scholars of St Mary College of Winchester'. The College is registered with the Charity Commission under the working name Winchester College and with the registration number 1139000.

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WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

Group structure

The results and activities of the Winchester College Foundation and the College’s three trading subsidiaries are incorporated into this report and accounts.

The Winchester College Foundation is a linked charitable trust set up by the Warden and Fellows in 1989 by deed of trust with objects ancillary to those of the College, including the support and promotion of the objects of the College with particular regard to the maintenance, preservation and improvement of the buildings and grounds comprising the College in accordance with the obligations imposed by the founder in the first statutes.

The Foundation is registered as a constituent charity under registration number 1139000-1. The Warden and Fellows are the sole corporate trustee of the Foundation.

The Warden and Fellows are trustees of and manage many other special trusts, as detailed in notes 21 to 24 to the Financial Statements, as well as the wholly-owned subsidiaries of the College as discussed on page 17.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Body

The Governing Body of Winchester College is known as 'The Warden and Fellows', the Warden being the elected Chairman. The Warden and Fellows, as the Trustees of the College, are legally responsible for the overall management and control of the College.

The full Governing Body meets three times a year towards the end of each school term, or more frequently as required, and is supported by seven committees which meet at least once each term and report to the governing body.

Under the Statutes of the College, the maximum number of Fellows, including the Warden, is fifteen. Two of these are appointed by specified external institutions, allowing the Warden and Fellows to elect up to twelve Fellows plus the Warden. The externally appointed fellows are Dr William Poole (elected by the Warden and Fellows of New College, Oxford) and The Hon Sir Stephen Cobb (appointed by the Lord Chief Justice of England). Miles Young, as the Warden of New College, Oxford also acts as a Fellow (ex officio appointment).

Recruitment and Training of Governors

Prospective candidates for vacancies on the Governing Body are put forward on the basis of nominations from the Warden and Fellows, and the Headmaster and Bursar. Candidates are considered in detail by the Nominations and Remuneration Committee, which then makes recommendations to the full Governing Body.

Prospective candidates are considered in the light of the skills and experience required at the time, which will include eligibility, personal competence, professional qualities, specialist skills, experience and availability. New Fellows are appointed for a term of five years and, subject to a performance review, may be re-appointed for up to a further five years by mutual agreement.

New Fellows are formally ‘admitted’ as Fellows at a full Governing Body meeting, or other such meeting at which there is a quorum of the Governing Body, and are expected to join at least one of the working committees. New Fellows are inducted into the workings of the College, including Governing Body policy and procedures, through meetings with existing Fellows and management of the School, written material, and by spending time at the College, before attending their first meeting. New Fellows attend specialist external training on the role and responsibilities of governors and trustees.

All Fellows are encouraged to involve themselves in school events and to spend at least one half-day in the school each year attending lessons and examining the implementation of key policies and procedures. Relevant seminars and in-service training at Governing Body and Committee meetings are arranged where appropriate, for all Fellows. Away Days are held as required, usually every two years. The most recent was held in 2020.

The Governing Body commissions an external review of its activities and effectiveness every three years. The most recent was performed by a specialist consultant in 2020.

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WINCHESTER COLLEGE REPORT OF THE WARDEN AND FELLOWS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

The Fellows of Winchester College who held office during the year and subsequently are detailed in the table below along with those committees to which they were a member at the time of signing these financial statements. The Warden is entitled to attend any Committee meeting.

Chair
Member		 Chair
Member
Appointment
Fellow
Year of appointment
Academic and Pastoral
Finance
Estate		 Development
Nominations and
Remuneration
Audit and Risk
Investment
Warden (Chairman)
Sir Richard Stagg KCMG
2019

Sub-Warden (Vice-Chairman)
Andrew Sykes MA
2017

Externally Appointed Fellows:
Miles Young MA
2016

Dr William Poole MA, DPhil, FSA
2016

The Hon Sir Stephen Cobb Hon LLD
2017
Internally Appointed Fellows:
Major General Jonathan Shaw CB, CBE,
MA
2011
Clarissa Farr MA
2012
Andrew Joy MA
2013

Nicholas Ferguson CBE, FSA Scot, BSc,
MBA
2014
William Holland BA, FCA
2015


Dr Peggy Frith MA, MD, FRCP, FRCOphth
2016

Dr Magnus Ryan MA, PhD
2018


Roland Turnill MA
2019
Laura Sanderson MA, Mphil
2020
Alison Mayne MA, PGCE
2021

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WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

Organisational Management

The day-to-day running of the College is delegated to the Headmaster and the Bursar. The Headmaster and the Bursar are also entitled to attend any meetings of the above Committees.

They are supported by the Senior Management Committee, which represents the various functions of the College. Together, this group is considered the key management team of the College. Other consultative committees and working groups are established as necessary to deal with the detailed implementation of matters as they arise.

SENIOR MANAGEMENT

Timothy Hands Paresh Thakrar Nick Wilks Ali Harber George Leicester-Thakara Derek Valentine Chris Stevens Tom Thomas John Cullerne James Hodgins James Fox Andrew Shedden Simeon Cox Lorna Stoddart Christopher Normand Callum Barnes Anthony Dakin James Thorne Jenny Michalczuk

Headmaster Bursar Second Master Deputy Head Pastoral ( from 1 September 2021 ) Chief Operating Officer (from 1 March 2021) Chief Accountant (until 31 August 2021) Director of Finance (from 2 August 2021) Director of Studies Undermaster Senior Housemaster (until 1 September 2021) Senior Housemaster (from 1 September 2021) Registrar Estate Bursar Director of Development Director of the Winchester College Society Designated Safeguarding Lead Chairman of Common Room (until 9 November 2020) Chairman of Common Room (from 9 November 2020) Director of Communications and Outreach

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WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

A number of management personnel and advisors also participate in meetings of the seven committees as follows.

A number of management personnel and advisors also participate in meetings of the seven committees as follows. A number of management personnel and advisors also participate in meetings of the seven committees as follows.
Member
In attendance
Appointment
Fellow
Academic and Pastoral
Finance
Estate		 Development
Nominations and
Remuneration
Audit and Risk
Investment
Officers:
Headmaster



Bursar





Management:
Second Master


Director of Studies

Undermaster
Chief Accountant

Estate Bursar
Director of Development
Deputy Director of Development
Director of Winchester College Society

Don Associate & Director of Friends
Development Associate, Legacies
External Advisors:
Oliver Caroe

Simon Crago

Alasdair Maclay
Andrew Watt
Hugh Green
Giles Wordsworth (Land Agent)

Rupert Sebag-Montefiore
Roger Gray
Charles Park

Governance

The Warden and Fellows regard good governance as essential. As the College is defined by the Charity Commission as a “large” charity, they aim to have a governance framework that is fit for purpose, compliant and efficient. The Charity Code of Governance, launched in 2017 and updated in 2020, recommends that charities review their level of application and explain any aspects of the code they were not applying. The Warden and Fellows have reviewed each of the seven elements of the code. The review found that the Warden and Fellows meet the principles of the code and comply with the detail of the code with a few exceptions. The main areas where current practice differs from the recommendations are:

  1. Chairmanship of the Audit and Risk Committee – 4.8.2 of the code recommends that the chair of the audit committee has recent and relevant financial experience. The Committee is chaired by a Fellow with significant senior leadership and management experience and who has particular and extensive experience in risk management. Although not himself a finance professional, he is supported by a senior finance professional who sits on the Committee as an Adviser and by two Fellows plus the Warden and SubWarden, one or both of whom normally attend meetings of the Committee.

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WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

  1. Diversity management practices – 6.5.2 of the code recommends attracting a diverse group of candidates for new trustee roles. The Warden and Fellows are keen to have a range of diverse views on the Governing Body and actively seek to encourage a broad range of opinions. The Nominations and Remuneration Committee always considers a range of measures of diversity in considering new appointments and succession planning. The desire for diversity has in practical terms to be balanced with the availability of appropriately skilled and experienced practitioners who are willing to undertake the very significant commitment expected of a Winchester Fellow.

  2. Fellows’ term limits – 5.7.4 of the code requires explanation in the trustees’ annual report where reappointment of a trustee may occur after already serving on the board for more than nine years. The College’s Statutes set out clear term-limits for Fellows. No Fellow can serve more than two five-year terms, except where the Warden is appointed from within the Governing Body in which case the Warden may not serve more than ten years as Warden and no more than fifteen years in total on the Governing Body.

  3. Size of Governing Body – 5.6.2 of the code recommends that a board of no more than twelve trustees is considered best practice. The College’s Statutes contain an explicit statement regarding the size of the Governing Body, which shall consist of a maximum of fifteen Fellows (including the Warden). The Warden and Fellows consider these arrangements to be in the best interests of the organisation, allowing for proper supervision and oversight through the Committee structure.

Management Remuneration

Remuneration, including that of the key management team, is set by the Warden and Fellows, with the objective of providing appropriate incentives to encourage excellence and of rewarding fairly and responsibly individual contributions to the College’s success. The appropriateness and relevance of the remuneration policy is reviewed annually, including through comparisons with the local labour market and with other independent schools to ensure that the College remains sensitive to the broader context of pay and employment terms and to conditions elsewhere.

The College’s ability to deliver its charitable purpose and objects is primarily dependent on its key management personnel and staff. Staff costs are the largest single element of the College’s charitable expenditure, accounting for some 60% of the total. The College aims to recruit teachers who combine deep subject knowledge with an ability to; motivate and engage, and to provide them with an attractive remuneration package commensurate with their expertise and experience.

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WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

Charitable Objects

The Objects of the College were redefined in a Charter of 1986, supplementing the original Charter of 1382, as follows:

  1. The advancement of education through the provision at the College of classical, literary, historical, mathematic, scientific, engineering, cultural and general education of the highest class for scholars and pupils and the provision of financial assistance for such education.

  2. The preservation for the public benefit of the whole or any part or parts of the buildings and grounds comprising the College and the preservation for the public benefit of furniture and pictures and chattels of any description ordinarily kept at the College and the doing of all such other things as shall be necessary or appropriate for the preservation of the College.

  3. The use and occupation of the said buildings, grounds and chattels for the advancement of the Christian religion and the practice of worship in such manner as shall be consistent with the work of the College and with the expressions of religious intention contained in the Founder’s charter.

  4. In connection with object 1 and 3, the promotion and maintenance of the choral foundation of the College. 5. The provision of facilities for recreation and other leisure-time occupation (within the meaning of the Recreational Charities Act 1958 and as therein limited), in such manner as shall be consistent with the work of the College and shall increase the public benefit flowing therefrom.

  5. The pursuit of other charitable purposes, in so far as consistent with the work of the College and liable to increase the public benefit flowing therefrom.

To these ends the College:

Aims and targets

Within these Objects, the College, a Christian foundation, aims to have an international reputation for academic excellence in one of the best boarding schools in the world, to maintain its independence to the greatest possible degree, and to offer the widest possible access to pupils capable of profiting from the education it offers. The College aims to encourage, train, and form confident, enthusiastic, well-rounded young adults with a strong ethical sense and a respect for the life of the mind, and who are at ease in their relationships with other people, whatever the circumstances. The College recognises that it is a community of past and present pupils, staff and parents. It aims to foster a sense of individual and collective responsibility for the College, the community and the wider world.

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WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

SUBSIDIARIES AND DEVELOPMENT

The College has three wholly owned non-charitable subsidiaries; two being Winchester College Trading Company Limited whose main activity is provision of campus facilities to external parties, and Beam Design Limited, which undertakes building works on behalf of the College, are active. The third, Winchester College Sports Limited is currently inactive, with the intention that the company will operate the new Kingsgate Park sports centre once construction is complete.

Winchester College Trading Company (Enterprises)

Trading as Winchester College Enterprises, activities primarily comprise revenue from letting the school’s campus facilities when not in use by the College. Annual profits from its operations are donated to the College under the Gift Aid Scheme.

Winchester College Enterprises hosts residential courses and sports and activity camps for children, organises catered events including wedding receptions, conferences and private parties, provides film locations and arranges charity events on campus. Enterprises also arranges guided tours of the ancient buildings seven days a week throughout the year, except Christmas and New Year.

Many of the College facilities are made available to the public and the College continues to forge links with the community through various economic, sports and tourism initiatives, including Heritage Open Days, Cultural Consortium, Discover Winchester, Kingsgate Village and the Business Improvement initiative.

Enterprises also organises, either free or at cost, on behalf of the College, numerous charity and community events making use of the College’s facilities, including carol services, fundraising concerts, offering performance spaces for rehearsals, concerts and other performances, providing venues and meeting spaces for local charities and community groups as well as outdoor activities for local educational and community bodies.

Beam Design Limited

The company operates as a design and build contractor on behalf of the College for major capital projects. No projects have been managed by Beam Design in the current or prior years, such that the results of the company comprise residual operating costs only.

Development Office

The College is committed to best practice in relation to all fundraising activities, which are carried out by the inhouse Development team who are subject to the scrutiny of the Development Committee and Governing Body. The College is registered with the Fundraising Regulator and has set up internal protocols and procedures to adhere to the Code of Fundraising Practice as a set of guiding principles to ensure fundraising is legal, open, honest and respectful, and the school’s Privacy Notices have been updated accordingly. This national code of practice includes rules governing consent, data sharing, data protection and privacy relating to all electronic and print communications. Within this framework, the College strives for full compliance with GDPR and PECR regulations and continues to review the management of data and its communication strategy in line with best practice.

Face to face and virtual meetings with donors and potential donors are always made by appointment and with full disclosure in advance of the purpose of each meeting. No formal complaints have been received in the financial year. A series of guidelines, in line with the recommendations as set out in the Fundraising Regulator’s Code of Fundraising Practice, have been adopted to protect vulnerable people and to guard against intrusion on a person’s privacy. Unreasonably persistent behaviour by fundraisers or undue pressure on a person to give money or other property is neither tolerated nor encouraged by operating guidelines.

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WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

Winchester College Society, for which further information can be found in note 8 to these financial statements, pursues fundraising for the College’s present and future needs as one of its aims. Details of funds raised in the year can be found within the Financial Review later in this Report. Particular emphasis is placed on attracting sufficient donations to allow the College to achieve the bursary target outlined above. In addition to raising funds for bursaries, the Development team continued to raise funds for the Kingsgate Park Project. In the financial year, cash banked for the Kingsgate Park Project totalled £1.6m, adding to the £8.0m received in previous financial years. Pledges totalling just over £3.5m have also been received since the launch of the campaign, meaning that in excess of £13m has been fundraised for the new sports centre.

PRINCIPAL RISKS AND UNCERTAINTIES

The risks that the College faces are reviewed on a regular basis through both its internal management structures and its governance. They examine the principal areas of the College’s operations and other activities and consider the major risks in each of those areas. Specifically, risks are evaluated in five main areas: compliance, financial, governance and operational plus the external environment. The College has established controls and procedures, which, under normal circumstances, should allow those risks to be managed appropriately and, where necessary, mitigated to an acceptable level. The key controls used by the College to minimise risk include:

Detailed consideration of risk and coordination of mitigating measures is delegated to the Audit and Risk Committee. In addition to its own agenda, it receives reports and assessments brought up by management from within the school’s own reporting structures.

The Committee, which reports to the Governing Body each term, also allocates major identified risks to relevant individuals or Governing Body committees for scrutiny and mitigation. They then form standing agenda items at each meeting of the committee or full Governing Body as appropriate, which assesses their impact and likelihood and, where necessary, implements controls to mitigate and monitor those risks that are assessed as most pressing.

Major risks identified in the current financial year and measures taken to combat those are described below.

Covid-19

The Warden and Fellows have paid special attention to the consequences of the Covid-19 pandemic. Reconfiguration of day to day operations to ensure pupils, staff and visitors remain safe, whilst maintaining a normal operating environment as far as possible, has been a key focus area. Through early adoption of technology an excellent transition to online learning was achieved, providing a continuous education to the College’s pupils throughout the year.

Purchase of a SAMBA 2 Covid-19 testing machine and an innovative partnership with DRW enabled mass testing to ensure house bubbles were largely Covid-free, with only two positive cases of Covid-19 identified across the pupil and staff body throughout 20/21. Furthermore, on site quarantine measures have been provided to returning overseas pupils to enable their safe integration into the school community following travel to the UK.

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WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

Safeguarding

In common with all schools, the safeguarding and protection of children in the College’s care is of paramount importance and the Governing Body ensures that adequate time and resources are devoted to it; appropriate policies and procedures and training are in place and followed; and a policy of openness and collaboration, both within the School and with relevant external authorities, is pursued.

Public Policy

Adverse changes to the public policy framework within which charitable independent schools operate and adverse media interest could potentially have a detrimental effect on the reputation and finances of both the school and independent education in general. The school retains appropriate legal, communications and other professional advice in addition to its own in-house resources. More broadly, the school works with sector representative bodies to promote the benefits to society that come from independent schools.

Academic Performance

The Warden and Fellows are mindful of the need to maintain pupil numbers and the academic performance of the School.

Quality and Suitability of Campus

The school is also dependent on the quality and suitability of its buildings and facilities, including IT. This brings its own challenges, including data protection and cyber-security risks, and the school is aware of the need to spend appropriately on continuous improvement and development. Investment in IT infrastructure was accelerated to meet the requirements of remote teaching provision, and there is an ongoing focus on use of technology to support learning.

The school is currently undertaking a major redevelopment programme to replace the existing PE Centre and reshape the southern part of the campus. Financial and operational risks inevitably accompany any project of this size and extensive steps have been undertaken to ensure the project is appropriately managed and monitored, with regular reporting to the Governing Body.

Page 19

WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

FINANCIAL REVIEW

The financial statements are presented in the standard format required by the Statement of Recommended Practice on Accounting and Reporting by Charities issued in 2019 (“the Charities SORP”) and Financial Reporting Standard 102. These consolidated accounts incorporate the results of the College and its three wholly-owned trading subsidiaries, Winchester College Sports Limited, Beam Design Limited and Winchester College Trading Company Limited.

The Statement of Financial Activities is a complex document and the simplified statement below seeks to bring out the College’s main sources of income and the results of its activities:

Income
Gross school fees
Gross Covid-19 fee discount and rebate
Gross scholarships and bursaries
Other school income including contributions towards bursaries
Job Retention Scheme income
School fees and other school income
Trading and other income
Investment income
Fundraising income
Expenditure
On charitable activities
On generating other income
Net operating loss
Kingsgate Park capital fundraising
New endowment
Net income
Analysis of net income by source:
School income
Depreciation
Deficit in school income
Trading, investment and fundraising
Net operating loss
Kingsgate Park capital fundraising
New endowment
Net income
Gains on revaluation of tangible fixed assets
Investment gains / (losses)
Pension scheme actuarial losses
Net movement in funds		 2021
£’000
29,101
(1,924)
(3,334)
1,432
582
25,857
225
2,979
870
29,931
(29,083)
(2,937)
(32,020)
(2,089)
1,610
11,771
11,292
(87)
(3,139)
(3,226)
1,137
(2,089)
1,610
11,771
11,292
1,239
42,088
(88)
54,531		 2020
£’000
28,681
(2,434)
(3,676)
1,723
1,432
25,726
143
3,286
1,246
30,401
(29,342)
(2,400)
(31,742)
(1,341)
2,247
2,037
2,943
(533)
(3,083)
(3,616)
2,275
(1,341)
2,247
2,037
2,943
3,981
(14,784)
(448)
(8,308)

Page 20

WINCHESTER COLLEGE REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

The College and its subsidiaries have four separate income streams, and in the financial year these produced income totalling £29.9m (2020: £30.4m).

Income Streams

School fees and other school income Investment income Fundraising income Trading and other income - 5,000 10,000 15,000 20,000 25,000 30,000 Income £'000 2020 2021

Fee Income bursaries and rebates

The School’s core, charitable activities produce the majority of income, with school fees, and income from other activities associated with running the School producing income after bursaries and other discounts of £25.9m, 0.5% higher than the previous year. Gross school fee income before discounts grew by 1.5%, reflecting an increase in pupil numbers from 688 to 693, with school fees maintained at the 2019/20 level of £41,709 per annum for 2020/21, reflecting continued uncertainty over the impact of Covid-19.

As a result of the Covid-19 pandemic, all boarding houses were closed for one term during the 2020/21 academic year, with £1.9m given as a discount to fees for that period. This rebate reflects cost savings during this period which were passed on to fee payers directly. School fees have been increased by 3.9% in September 2021, as a result of the school returning to full operation.

A total of £0.58m was received from the Government’s Job Retention Scheme (JRS) as the College furloughed in excess of 300 non-teaching staff affected by the closure of the boarding houses and other activities during the Spring term. The College guaranteed that all furloughed staff were paid 100% of their salary, whilst the College was able to claim back 80% from the JRS. No teaching staff were placed on furlough.

Bursaries, scholarships and other awards totalling £3.3m were deducted from gross fees during the year, with 121 pupils receiving bursary funding in the year, as explained more fully on page 7. The College remains committed to increasing bursary provision as funds allow, which is demonstrated by the introduction of the Wykeham Award in 2021.

Trading and Investment Income

Trading income saw a modest improvement of £82k in year, but remained subdued, with ongoing restrictions to use of facilities due to Covid-19. External activities, such as residential summer courses run by third parties, were cancelled with overseas participants unable to travel to the UK. Although a limited number of outdoor sports hirings, weddings and the introduction of an outdoor cinema were possible, there was insufficient opportunity to regain losses from the first half of the year.

Income from the College’s investments and cash deposits decreased by £0.3m to £3.0m. Investment income from the College’s financial assets decreased by £0.2m to £1.0m reflecting a refocusing of the investment portfolio towards longer term investments. Property investment income has increased slightly in year by £0.1m to £1.9m, reflecting a consistent property portfolio. Interest receivable of £70,000, is down from £187,000 in 2020, reflecting expenditure of cash reserves on the Kingsgate Park project in year.

Page 21

WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

Fundraising

Fundraising continues to play a critical role in the College’s financing. In total, the amount raised in the year was £14.2m, a significant increase of £8.7m on the previous year (2020: £5.5m) , driven by an increase in endowment donations, primarily received for the purpose of expanding future bursary provision. The College is immensely grateful to donors for their generosity.

Fundraising falls into two categories. Firstly, donations to endowed funds, which are treated as income under charity accounting, but in practice have to be ring-fenced and invested, and hence are not immediately available to support the College’s activities. The second category is donations which can be restricted, or unrestricted, and are expendable in accordance with the donors wishes and the requirements of the College.

Endowed funds received in the year included donations to the College Bursary Fund, the Warden Sinclair Fund that provides assistance to pupils who are in receipt of a bursary to take full advantage of the opportunities available at the College, and the Wykeham Fund, which supports the College’s charitable objectives through the three principal areas of the provision of bursaries, the maintenance of the Ancient Buildings and collections and support for the Quiristers.

The Kingsgate Park capital fundraising campaign for the ongoing major redevelopment of the PE Centre and squash courts, Works Department, Laundry, Mill and Medical Centre, raised £1.6m during the year (2020: £2.2m). These funds are earmarked for the Kingsgate Park project and are therefore not available for the College’s day to day operational activities.

Other fundraising and development income, which is available for immediate operational use, decreased by £0.4m to £0.9m.

Expenditure

----- Start of picture text -----
Expenditure
Teaching
Premises
Welfare
Support
Grants, awards and prizes
Financing costs
Portfolio management
Ancient buildings
Fundraising costs
Development costs
Trading costs
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000
Expediture £'000
2020 2021
----- End of picture text -----

Total expenditure in the year was £32.0m. This was 0.9% higher than the previous year, and significantly below the College’s planned budgeted expenditure due to the suspension of all but essential activities in Common Time, offset by additional Covid-19 related costs.

Portfolio management and financing costs were up £0.7m owing to drawdown of the third tranche of long-term borrowing, incurred to support construction of Kingsgate Park, alongside management of a growing investment portfolio. Premises costs also experienced a modest increase of £0.2m, with supply chain pressures on repairs, maintenance and enhancements to the built estate. A saving of £22k was achieved on the cost of utilities, reflecting the benefit of ESG initiatives, such as the installation of LED lighting across the estate.

Page 22

WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

Support and welfare activities saw increased expenditure of £0.85m, reflecting the College’s continued focus on providing a safe environment in which to work and study. During the pandemic the College has been committed to ensuring that pupils, staff and visitors remain safe, and continued focus on mental well-being for all staff and pupils was also a priority.

The largest component of savings to school expenditure in year was a decrease in teaching costs of £1.3m, due to mix of staff and less variable spend on teaching provision such as music lessons. This was in part due to the absence of pupils for some of the year, along with a £0.3m saving on IT software and hardware. Modest savings were also achieved across several areas, including a 9% saving on trading activities, owing to restricted opportunities to open the campus to the public, along with 11% and 18% savings for development and fundraising activities respectively, owing to a transition to remote events and harnessing of technology to reach donors. Note, these savings were offset by a fee rebate to all families totalling £1.9m as explained in the income section above.

Results

Overall, the group generated a net operating loss of £2.1m in year, which is £0.7m in excess of the loss incurred in 2020. Net movement in funds after investment gains and actuarial losses was £54.5m (2020: £8.3m loss).

As noted above, a further £1.6m was received for the Kingsgate Park project and £12.3m received for the endowment. Both of these are capital in nature and have to be set aside from operating results; the former to be spent on construction works, and the latter added to the College’s investments, so that the income generated may benefit both current and future generations.

Balance Sheet

The net asset position of the college has improved by £54.6m in year, principally due to a gain on investments of £42.1m detailed in note 15.

The College expended £12.6m ( 2020: £13.2m ) on capital projects in the year, including £0.1m on installation of a new boiler in Chapel and £0.1m on pianos and musical equipment, along with £0.1m on state-of-the-art cricket nets funded by generous donations and £0.04m on levelling Lords outfield to support continued partnership with Hampshire County Cricket. £12.2m ( 2020: £11.6m ) was expended on the Kingsgate Park project.

As reported last year, the College has also put in place a loan facility of £40m to enable it to manage its cash flow requirements. On 27 November 2020, the College received the third and final tranche of £12.5m, completing the drawdown of £40m in total which is recorded in creditors due in more than one year. Further information can be found in note 27 to these financial statements.

Reserves

The College has substantial reserves, though by their very nature the use of the income and capital of each fund is limited in accordance with the wishes of the donors when the funds were established. These reserves are shown under restricted and endowed funds and summarised below.

Endowment – Permanent
Endowment - Expendable
Restricted
Unrestricted
Total		 2021
2020
£’m
£’m
4
4
361
310
1
1
51
48
417
363

The College needs to have sufficient unrestricted reserves to enable it to meet its charitable obligations in the short term should there be an unexpected revenue shortfall, such as that caused by the Covid-19 pandemic. The existence of unrestricted reserves also offers the College flexibility to plan and fund major projects to develop and maintain its buildings and facilities. The unrestricted reserve (or “General Purposes Reserve”) is expendable at the discretion of the Warden and Fellows in the furtherance of the Objects of the College.

Page 23

WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

In addition, the Warden and Fellows may call on the Winchester College Foundation, which is an expendable endowment intended to support the general purposes of the College. It is the intention of the Warden and Fellows to maintain the real value of the Foundation and use the income derived to support the College’s three main charitable objectives: bursaries, the Ancient Building and Quiristers. However, in extremis, the Foundation could provide adequate cover for the College’s longer-term capital expenditure commitments and any other longer-term financial obligations.

Free reserves represent the unrestricted funds excluding the value of fixed assets less associated funding arrangements. These decreased by £7.6m to a negative £9.8m (2020: negative £2.2m), as a result of significant additions to fixed assets during the year. The level of free reserves, albeit currently negative, are considered by the College to be adequate, when taken in conjunction with the availability of funds from the Winchester College Foundation if required.

Investment policies and performance

The College invests funds to support its activities for the long term, across a spread of different asset classes. The three main components are:

These investments form the principal assets of the College’s expendable and permanent endowed funds. In addition, the College maintains significant cash holdings.

The College’s investment objectives are to:

  1. maintain (at least) the value of the investments in real terms;

  2. produce a consistent and sustainable amount to support expenditure; and

  3. deliver (1) and (2) within acceptable levels of risk.

The College uses returns from these investments to help pay for:

This is intended to balance the needs of current and future beneficiaries of the College.

To meet these objectives, the College’s investments as a whole are managed on a total return basis, maintaining diversification across a range of asset classes in order to produce an appropriate balance between risk and return.

The Statutes of the College permit the College’s funds to be invested in assets of any nature and the College has long had a policy of holding different asset classes. In line with this approach, an Order has been obtained from the Charity Commission to allow the College to invest permanent endowments to maximise total return and to make available an appropriate proportion of the total return for expenditure each year.

Under this total return accounting basis, the Warden and Fellows extracted as income in the year 3.5% (plus costs), of the value of the relevant investments. Further information can be found in note 1.9 and 6 of these financial statements.

Investment policy, asset allocation and performance are monitored by the Investment Committee. The Investment Committee consists of eight members; three Fellows, two management and three external members selected for their relevant expertise and experience.

Page 24

WINCHESTER COLLEGE

REPORT OF THE WARDEN AND FELLOWS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

The total returns from the College’s investments in the year on a like for like basis comprised investment gains of £42.1m, plus income of £2.9m, making a total of £45.0m. At the balance sheet date, the College’s investments were valued at £291m (2020: £250m), with £30.4m and £11.7m of gains across property and financial assets respectively as disclosed in the Statement of Financial Activities. Of the balance sheet value, 57% was represented by the College’s property holdings, 35% by the financial assets portfolio, 7% by the portfolio of residential properties and 1% by the fees in advance scheme investments.

Property Holdings

The College’s property holdings and their associated interests were valued at the balance sheet date at £165.4m, after a net revaluation gain of £30.2m in year before additions and disposals. This reflects a rebound in asset values, following depressed valuations during the height of the pandemic.

The property holdings, managed by Savills on behalf of the College, include the College's interest in Barton Farm (land on the outskirts of Winchester), on which, in October 2012, outline planning consent was granted for 2,000 houses. To date, the developers, CALA Homes (Thames) Limited, have purchased from the College sufficient land to build 686 houses, for which the College has received £34.6m, with a further £11.5m deferred receipt due in 2022.

Elsewhere across the College’s property holdings, £0.3m (2020: £0.5m) of farm improvements were made during the year, along with the purchase of two new properties, Elken House and the Pump House, for a combined value of £2.4m. The latter, which sits on the edge of the school’s campus has since been let at an attractive yield on purchase cost following a change of the planning conditions to allow a broader commercial use of the building. Further information can be found in note 15(a) to these financial statements.

The portfolio of 23 residential houses (2020: 22) is held principally for the rental stream they generate. There was a small increase in the valuation of the housing stock as part of the desktop valuation performed in 2021, with a 3% uplift for those properties with substantial gardens.

Financial Assets

During the year the College’s financial assets portfolio was principally managed by Partners Capital who took over as investment advisors in August 2020. The College also utilised three further investment managers in the year for legacy funds; BlackRock, Troy Asset Management, and UBS. Partners Capital report on the consolidated position of funds held by themselves and the other managers to the Investment Committee on a regular basis. In addition, the College directly holds positions in Tetragon Financial Group Ltd and Arisaig Consumer Fund Ltd, which have been generously donated to the College. The portfolio’s asset allocation and major holdings are set out in note 15 (c).

Partners Capital have completed their first year as investment advisers to the College, with multiple fund reallocations occurring subsequent to the transition of funds from the previous investment manager. The portfolio performance has been supported by buoyant capital markets, with a net return after fees and expenses of 19.5% for the period 1 October 2020 to 31 August 2021, representing the period under Partners Capital management. The portfolio marginally underperformed against its benchmark in the period to August 2021, on a constant currency basis. Owing to the strength of sterling against the US dollar, there was also a currency translation loss, the majority of which has been reversed since 31 August 2021.

The diversified financial assets portfolio is invested so as to deliver a sustainable return to support the College’s charitable objectives over the long term, whilst maintaining sufficient liquidity to meet cash commitments without having to sell equities at short notice.

Proceeds from land sales, together with new donations to the endowed funds, are primarily invested into the financial assets portfolio. During the year new donations of £10.8m along with £9.2m of receipts from Barton Farm were invested into the financial asset portfolio. A further £2.4m of receipts was reinvested via the purchase of two investment properties; Elken House and the Pump House. The balance of land sale proceeds and endowment funds were held in cash at the year end, waiting to be invested in the financial asset portfolio in 2021/22. Dividends and interest of £1.02m were received, fees of £0.27m paid and £2.6m extracted. The year-end value of the financial assets portfolio was £103.2m (2020: 73.0m).

Page 25

WINCHESTER COLLEGE REPORT OF THE WARDEN AND FELLOWS (continued) FOR THE YEAR ENDED 31 AUCUST 2021 In additinn to the property and financial assets portfoli05, the Cnlle8e hnlds a sÈparJte wrlftslit) tsF ltswer-risk a$et$ to &uppurt the Cullese's in advancv srheTne. This wrifulio is invested in a spread ul fixed deposits, Inv￿￿t￿ent 8rade e(Irpurate bund funds, UK gilts and cash. As these invvJtmEnts arE nvt hvld as port of the College's long-term invL￿tm￿nt stratogy, but SPLciEically to holp moL)t liabilitios undor tho in advanco schomo. tho income and gains arising arL' L'xcludL,d fvutn thL' l)yLirall TL'tUTn liguTL'5 X't out within thi5 RL'P()rt. Coing concern A detailed budget hag been prepared lor the 202102 academic year as well a5 a lorecaql ftIT 2022123, which consider the CollLgL 5 cash pusilion, sourcL'is 01 inwmL and Plannl￿ LJXPLbnditurL.. 'I'his budgL't and lorL'cast lakL' account ol kcy challen8e5 ari%in8 from thc ungoing pandemi¢ including thL rL'configuration vf day-tu-day OPL'rali()n5 to Lnsure pupils, staff and vi5iluTS remain safe. Both the budget ond forecast include addiilonal costg and savin85 arising from ur response lo the P￿1ndemiC and have made prudent a89umptions relatins lo our future inmme.stream. As mL'ntiunLbd abc)VL', thL¥ CollL%L, has a lar8L' L'ndowmL'nt and financial pLrlormancL' conlinuLls to bL' muniliirL.d rL%ularly. ThL' Warden and FL.Ilows havL' 5crutin1sl￿ thL. kL'y assumptions within the financial bud8Lt and laTLYast and are satisfied that the current level ol Iree re&orves, avi1ilable investment and cash balantt%. and in extremi8 the QXPLindablo LbndowmLbnt, arLi a¢lLyuatLi tu mL￿t the Colle8Lb'S ()bligation4 as thLy loll duL I lavin8 rLl8ard to tho aix)vo, the Wardlin ond PLIIuws 4Lre >oti¥lied that theTL' are Tnalerial uncertaintie¥ around the dtci¥iun to adupt the goin8 c()nCL￿r0 ba51$ ol a¢ciiunting in prL'paring thL%L, linancio13talLimLbnty. R¢Jponsibili¢ie8 of the Warden and Fellow6 ThLI Warden and fL,Ilf>ws arLb rL%punsiblL, ft>r pN'paring tho RLport ol thii WardLin and FLllows and the linancial 8tatement$ in accordance with applicablo law and ro%ulallon.9. Charity law requires thc WardL'n and FL.Ilows to preparL. finanaal stalL'mL'nt5 f()r L'ach financial yL'ar in accr)rdanco with unItL￿ Kin8dom C¥enerally Accepted Accounting Practice IfR8 IQ2, ThLJ Financial RgFortin8 Standard applicablL' in thL. UK and RL'public ul IrLilandl and applicoblL. law. Under charity law the Warden and FcllcJw8 mu$t not apprDvL. thc linancial.qtatement8 unle88 they.. scILCt suilablL' accounting policies and thLin apply them con5iylently.' makL' judgLimLints and e¥limales that are reayonoble and prudent,. $taie wholhor applicablL' acc()unting standard9 havL bL￿1n lollowod. Sub)L￿ to any matorial departurLI$ dlscliwLxI and Lixplalned in the Ilnanool slatem¥nt8,' preparc tho financial %tatLbmc?nts nn the g(>ing o)ncorn b8918 unlLlSS It i8 inappinpriate to pre8ume that the Collc%L' will cvnlinue to opÈr8te. 'I'hL Wbrdcn and Fellow$ arLi fLl8P()nsiblLi fr>r kL￿pIng pr(JPLir acts)untin% rocnrds that aro sufficient tr) show and cxplain the LDllesc's transadi()ns and dixl(Isc with rL'B5onablc acruracy at any timc thc financial w.sition ol the C(IllcsL' and LJnablL' thLim lo ensuTe thai thc financial stalemonts comply with thL CharitTes Act 2011. '1'hL'y aTL' al&() rg5POn5ible for safeguarding thL' a&sL'ls (?1 IhL. L(TrllL'8L' and hL'ncL. l()r takin8 re&4nnable stL'P4 11)r the prevention and detertion ol fraud and uthL'r irrL'8ularitlL'S. 'rhe Warden and r,ellow5 c()nfirm that they have LDrnplied with the above rLNuircments. Approved by the Warden and bellows on 4 Detvmb2r 2021 and signed on their behalf by Sir Richard Sta88 Warden Page 26

INDEPENDENT AUDITOR’S REPORT TO THE WARDEN AND FELLOWS OF WINCHESTER COLLEGE

Opinion

We have audited the financial statements of Winchester College (the ‘Charity’) and its subsidiaries (‘the Group’) for the year ended 31 August 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and College Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Warden and Fellows 's 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 charity’s or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The Warden and Fellows are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Page 27

INDEPENDENT AUDITOR’S REPORT TO THE WARDEN AND FELLOWS OF WINCHESTER COLLEGE (continued)

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and charity and their environment obtained in the course of the audit, we have not identified material misstatements within the Warden and Fellows’ report.

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

Responsibilities of the Warden and Fellows

As explained more fully in the Warden and Fellows’ responsibilities statement, the Warden and Fellows 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 Warden and Fellows 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 Warden and Fellows are responsible for assessing the charity’s and group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Warden and Fellows either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011, taxation legislation, employment legislation and general data protection legislation, together with the Charities SORP (FRS 102) 2019 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

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 charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud. The laws and regulations we considered in this context for the UK operations were The Education (Independent School Standards) Regulations 2014.

Page 28

INDEPENDENT AUDITOR'S REPORT TO THE WARDEN AND FELLOWS OF WINCHESTER COLLEGE (continued) Auditing ytandards limit the required audit procedures to identify non-compliantè with these ]aws and regulations to enquiry of tho Wardon and Follows and other management and inspectivn of regulatory and legal corresponden￿. if any. We identified the greatest risk ol material impact on the finanthal gtatementg from irregularities. including fraud, to be within the timing and recosnitiun of non-fee income. procurement processes for Significant capital projects and the override of controls by management. Our audit pr(KLidurLS to rLSSP(Trnd to thLsii fibks indudLbd lbnqulriL￿ of managemLnt and tho Audit &E Risk Committoe about their own Identilicatlon and assessment ol the risks of irroguloritLQ$. samplo tosting on thL P08tin% af j()urnal$, reviowing acwuntin% estimates fr>r blast%. roviewing resulatvry correspondence with the Charity Cnmmission, Independent Schtx)1s IrLspectnrate, Ofsted and readins minutes of meeting5 of those charged with gUveTnan￿. Owing tothe Inhe￿￿t 1imltat1o￿ vfanaudit, there i$3n unèvvldable risk that we may nvthJvL.dL7tLYtLd bUtnLi material mi￿tatc.MLntS in thL. linanaal statLmLnts, evL'n th()ugh we have properly planned and peTIoTmed OUT audit in accordano. with auditing standards. For Lxample, the further remnved non-u)mpliance with laws and resulations lirrL'sularitlL'g1 is Iri)m the i'vents and trangadi()ns reflected in the financial statements. the less likely the inherently limitL%I prUCLdUrL￿ tlbquifL￿ by auditing standardy wijuld idL%ntity it. In addition, as with Any audit, thLifLi fLimainLid a hlgher rlsk of non-dL,tectlon of ￿tre￿VIOrIt￿eb, as thL'bL' may invvlvL' C()IIu5i¢)n, l()rgLTyi intLnti()nal VTni5siunb, mi5fL'pfc8cnlalii)n.s, or the nverridL ol inti'rnal a)ntTn15. We are not re5pon5ible lor preventing noll-compliance and cannut bL' cxpected to dL.tect non-c()mpliance with all laws and r￿uLatIons. Use of OUT repoi¢ This ropor is mado 8()loly to thLI tharity's morni￿r$, as a ikThly. in accordanco with Part 4 cjl the Charitios IAccounLS and RL'purtyl RL'sul3liony 2(X)S. (￿r audit wurk has undL'rlakLn X) that WL. misht ¥tatL. t(I Ihc charity'5 TllL'mbLirs th￿Se m)tters we are required tg stale 10 Ihem In an audltor's rep)Tl and l£ir nl) ulhl'r purposL..'lu thL. lullL%l LxlL'nl peTmiltLd by law, we d() not accept ()r a&sumc re.swnsibilily tii anyone other than the tharity and the charity's mLTh￿,rs ag a knjyi lor our audit work, lur this rL'P(Trrt, or lor the opinions we havL, fOrrnL￿. C Li.1< LkF Crowe U.K. LLP Statutory Auditor London Date.. 10th December 2021 Crowo U.K. LLP IJ ollslblo lo Kl o$Jn&udllor In lorrn$vf xytlon 1212of IhoLornpanioJ Acl 20￿. Page29

WINCHESTER COLLEGE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2021

Notes
Income:
Income from charitable activities
School fees receivable
2
Other income
3
Income from other activities
Trading income
4
Other activities
4
Investment income
5
Capital applied to income
6
Bank and other interest
7
Grants and donations
8
Other development income
8
Total income
Expenditure:
Costs of raising funds
Trading costs
9
Financing costs
10
Investment management
9
Development costs:
- Fundraising
9
- Other activities
9
Total costs of raising funds
9
Charitable activities
Education and grant making
9
Preservation of buildings and contents
9
Total expenditure
Net incoming resources
before transfers and investment gains
Gains on revaluation of tangible fixed
assets
Gains/(Losses) on property investments
Gains/(Losses) on financial assets portfolio
Losses on fees in advance investments
12
15
15
16
Transfers between funds
23
Net income and capital inflow/(outflow)
Pension scheme actuarial losses
26
Net movement in funds for the year
Fund balances brought forward
Fund balances carried forward
at 31 August 2021		 Unrestricted
Funds
£’000
24,825
450
118
689
36
4,043
70
235
23
30,489
(227)
(1,112)
-
(435)
(318)
(2,092)
(26,424)
(504)
(29,020)
1,469
235
-
-
(4)
1,811
3,511
(88)
3,423
48,067
51,490		 Restricted
Funds
£’000
-
-
-
-
-
1,103
-
2,222
-
3,325
-
-
-
-
-
-
(1,335)
(11)
(1,346)
1,979
-
-
-
-
(1,811)
168
-
168
1,055
1,223		 Endowed
Funds
£’000
-
-
-
-
2,873
(5,146)
-
11,771
-
9,498
-
-
(845)
-
-
(845)
(809)
-
(1,654)
7,844
1,004
30,364
11,728
-
-
50,940
-
50,940
313,776
364,716		 2021
Total
£’000
24,825
450
118
689
2,909
-
70
14,228
23
43,312
(227)
(1,112)
(845)
(435)
(318)
(2,937)
(28,568)
(515)
(32,020)
11,292
1,239
30,364
11,728
(4)
-
54,619
(88)
54,531
362,898
417,429		 2020
Total
£’000
23,577
717
67
1,508
3,099
-
187
5,465
65
34,685
(246)
(726)
(544)
(514)
(370)
(2,400)
(28,839)
(503)
(31,742)
2,943
3,981
(13,990)
(785)
(9)
-
(7,860)
(448)
(8,308)
371,206
362,898

Page 30

WINCHESTER COLLEGE CONSOLIDATED AND COLLEGE BALANCE SHEETS AT 31 AUCUST 2021 Group College Noto 2021 £,￿0 2020 2021 2020 FIXED ASSETS lan%iblL. fixed assets InvLSstment 12 14 126Jf43 291,195 116.788 250,377 126.093 291,255 176,788 250,437 417,288 367,165 417,348 367,225 CURRENT ASSETS StIKk DL,btors Cash and deposits 17 1,126 35.8U7 12340 41216 1.250 35.776 41377 54,476 36,942 5£656 37.026 CREDITORS: amount8 lalllng due within vnL' year 18 111,1651 {10,412) 111.1701 (10,4191 NET CURRENT ASSETS 43,Jii 26530 43,486 26,607 TOTAL ASSETS LESS CURRENT LIABILITIES 460J99 393.695 393.&32 CREDITORS.. amounts falling due after more than one year 19 143,1701 (30.4241 143,1701 (30,4241 NET ASSETS BEFORE PENSION DEFICIT PLinbi(>n SchLbmL, dL,fieit 417,429 363,271 417,664 363,408 26 13731 1373) NET ASSET5 AFTER PENSION DEFICIT 417,429 362.898 417.664 363,fl35 REPRESENTED BY: ENDOWED FUNDS 364.716 313.776 364,719 313,776 RESTRICTED FUNDS I,a55 l.Q55 UNRESTRICTED FUNDS CJeneTal Purposes Reserve Pension Reserve 51A90 48.440 (3731 51,722 48577 1373) 26 417.429 362.898 417￿4 363,035 These financial statements were approved by the WardLbn and Fellows on 4 December 2021 and were signed on their behalf by.. Worden Bursar Page 31

WINCHESTER COLLEGE

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 AUGUST 2021

Note
Net cash inflow from operations
(i)
Cash flows from financing activities
New endowment
New loan note
Fees in advance scheme
Interest and finance costs paid
Cash flows from investing activities
Investment income and bank interest received
Payments for tangible fixed assets
Payments for investments
Acquisition and improvements to estates
properties
Acquisition and improvements to Winchester
Houses
Proceeds from sales of estates properties
Proceeds from sale of fixed assets
Proceeds from sale of investments
Net cash used in investing activities
Change in cash and cash equivalents in the
reporting year
Cash and cash equivalents at the beginning of
the year
Cash and cash equivalents at the end of the
year
Reconciliation of net cash
Cash and cash equivalents
Loan
Net cash		 2021
£’000
£’000
1,270
11,771
12,500
(197)
(1,112)
22,962
2,981
(11,744)
(29,019)
(2,700)
-
11,563
-
11,257
(17,662)
6,570
35,807
42,377
At 1
September
2020
£’000
35,807
(27,500)
8,307		 2021
£’000
£’000
1,270
11,771
12,500
(197)
(1,112)
22,962
2,981
(11,744)
(29,019)
(2,700)
-
11,563
-
11,257
(17,662)
6,570
35,807
42,377
At 1
September
2020
£’000
35,807
(27,500)
8,307		 2020
£’000
£’000
392
2,037
20,000
(1,085)
(726)
20,226
3,286
(12,569)
(2,202)
(472)
(264)
-
14
3,053
(9,154)
11,464
24,343
35,807
At 31
August
Movement
2021
£’000
£’000
6,570
42,377
(12,500)
(40,000)
(5,750)
2,377		 2020
£’000
£’000
392
2,037
20,000
(1,085)
(726)
20,226
3,286
(12,569)
(2,202)
(472)
(264)
-
14
3,053
(9,154)
11,464
24,343
35,807
At 31
August
Movement
2021
£’000
£’000
6,570
42,377
(12,500)
(40,000)
(5,750)
2,377
11,464
24,343
35,807
At 31
August
2021
£’000
42,377
(40,000)
2,377

Page 32

WINCHESTER COLLEGE CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 AUGUST 2021

(i) Reconciliation of net income to net cash flow from operating activities

Net incoming resources
Elimination of non-operating cash flows:
- Investment income
- Interest receivable
- Endowment donations
- Financing costs
FRS102 pension adjustments
Depreciation charge
Profit on sale of assets
Gift in kind donations
Decrease/(increase) in debtors and stock
Increase/(decrease) in creditors
(excluding fees in advance scheme)
Increase in parents’ deposits
Net cash inflow from operations
(ii) Analysis of cash and cash equivalents
Cash at bank
Bank deposits		 £’000
(2,909)
(70)
(11,771)
1,112
(461)
3,139
-
-
570
245
123		 2021
£’000
11,292
(10,022)
1,270		 £’000
(3,099)
(187)
(2,037)
726
(455)
3,083
(11)
(201)
(99)
(403)
132
2021
£’000
2,166
40,211		 2020
£’000
2,943
(2,551)		 2020
£’000
2,943
(2,551)
392
2020
£’000
5,618
30,189
35,807
42,377

Page 33

WINCHESTER COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES

The College is a Public Benefit Entity. The College was founded in 1382 and registered as a charity with the Charity Commission for England and Wales on 12 November 2010 (charity number 1139000). Its registered office is: Winchester College, College Street, Winchester, Hampshire, SO23 9NA.

The consolidated financial statements have been prepared in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and the Statement of Recommended Practice on Accounting and Reporting applicable to charities preparing their accounts in accordance with FRS 102 (“The Charities SORP 2019").

The financial statements have been prepared to give a 'true and fair' view and departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved preparing accounts in accordance with FRS 102 rather than SORP 2005 which has since been withdrawn.

The financial statements consolidate those of the College and its wholly owned trading subsidiary companies: Beam Design Limited (company no. 02902175) and Winchester College Trading Company Limited (company no. 02673873).

The financial statements are drawn up on the historical cost basis of accounting, as modified by the revaluation of certain assets including investment properties and other investments. The functional currency of the College is considered to be GBP because that is the currency of the primary economic environment in which the College operates.

A detailed budget has been prepared for the 2021/2022 academic year as well as a forecast for 2022/2023, which consider the College’s cash position, sources of income and planned expenditure. This budget and forecast take account of challenges arising out of the ongoing pandemic, including the reconfiguration of day to day operations to ensure pupils, staff and visitors remain safe. Both the budget and forecast include additional costs and savings arising from our response to the pandemic and have made prudent assumptions about our income stream. As mentioned above, the College has a large endowment and financial performance continues to be monitored regularly. The Warden and Fellows have scrutinised the key assumptions within the financial budget and forecast and are satisfied that the current level of free reserves, available investment and cash balances, and in extremis the expendable endowment, are adequate to meet the College’s obligations as they fall due. Having regard to the above, the Warden and Fellows are satisfied that there are no material uncertainties around the decision to adopt the going concern basis of accounting in preparing these financial statements.

1.1 Fees and similar income

Fees receivable and charges for services and use of the premises, less any allowances, scholarships, bursaries granted by the College against those fees, but including contributions received from restricted funds, are accounted for in the period in which the service is provided.

1.2 Investment income

Interest on bank balances and fixed interest securities is accounted for on the accruals basis. Credit is only taken for dividend income and similar distributions when received. Income from investment properties is accounted for in the period to which the rental income relates.

1.3 Donations, legacies, grants and other voluntary incoming resources

Voluntary incoming resources are accounted for as and when entitlement arises, the amount can be reliably quantified and the economic benefit to the College is considered probable. Voluntary income received for the general purpose of the College is credited to unrestricted funds. Voluntary income subject to specific wishes of the donor is credited to the relevant restricted fund or, where the voluntary income is required to be held as permanent capital, to endowed funds. Gifts in kind are valued at estimated open market value at the date of gift, in the case of assets for retention or consumption, or at the value to the College in the case of donated services or facilities.

Page 34

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES (continued)

1.4 Expenditure

Expenditure is accrued as soon as a liability is considered probable, discounted to present value for longerterm liabilities. Certain expenditure is apportioned to expenditure categories based on the estimated amount attributable to that activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate. The direct costs incurred in preserving the College’s ancient buildings and their contents are shown as a charitable activity separate to that of education and grant-making. Irrecoverable Value Added Tax is included with the item of expenditure to which it relates.

Grants are accounted for in the period in respect of which they are made. Governance costs comprise the costs of running the charity and of complying with constitutional and statutory requirements. Intra-group sales and charges between the College and its subsidiaries are excluded from group trading income and expenditure.

Termination benefits are recognised in the Statement of Financial Activities when the College has demonstrably committed to making termination payments and there is no realistic possibility of withdrawal from a termination agreement.

1.5 Tangible fixed assets

Expenditure on the acquisition, construction or enhancement of land and buildings costing more than £50,000 together with artefacts, vehicles, furniture, machinery, ICT infrastructure and other equipment costing more than £5,000 are capitalised and carried in the Balance Sheet at historical cost less depreciation. The cost of ICT equipment is written off as incurred. In certain circumstances, where the original costs of assets are not ascertainable, a reasonable estimate of the cost, if material, has been used.

Other expenditure on equipment incurred in the normal day-to-day running of the College and its subsidiaries is charged to the Statement of Financial Activities as incurred.

The exception to holding assets at cost is that residential houses for staff accommodation are shown at market value. These properties are revalued annually. The surplus or deficit on revaluation is dealt with in the Statement of Financial Activities.

The College also holds certain heritage assets which are not recognised on the balance sheet, in accordance with the requirements of the Charities SORP 2019, as information on their cost or valuation is not available due to the length of ownership and unique nature of the assets in question. Further information on these assets can be found in note 13.

1.6 Depreciation

Depreciation is provided to write off the cost of all relevant tangible fixed assets, less their estimated residual value based on current market prices, in equal annual instalments over their expected useful economic lives as follows:

College buildings, including major extensions 50 years Residential houses for staff 50 years Refurbishments, alterations and minor extensions 7 to 15 years Furniture, machinery and equipment 4 to 7 years Motor vehicles 4 years

Land is not depreciated

1.7 Investments

Investment properties have been valued as individual investments at their market values as at the balance sheet date. Purchases and sales of investment properties are recognised on unconditional exchange of contracts.

Page 35

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES ( continued )

1.7 Investments (continued)

Listed investments are valued at market value as at the balance sheet date. Investments such as hedged equities and private equity funds, which have no readily identifiable market value, are included at the most recent valuations from their respective managers. Unrealised gains and losses arising on the revaluation of investments are credited or charged to the Statement of Financial Activities and are allocated to the appropriate Fund according to the “ownership” of the underlying assets.

Investments in subsidiaries in the College balance sheet are held at cost less provision for impairment.

1.8 Stock

Stock represents goods for resale and is valued at the lower of cost and net realisable value.

1.9 Total return accounting

The Charity Commission permitted the College to adopt the use of total return in relation to its permanent endowment on 26 June 2008. The power permits the College to invest permanent endowments to maximise total return and to make available an appropriate proportion of the total return for expenditure each year. Until this power is exercised the total return will be an “unapplied total return” and remain as part of the permanent endowment. The Warden and Fellows have decided it is in the interests of the College to present its expendable endowment in the same way, though there is no legal restriction on the power to distribute the expendable reserve.

To represent the “preserved value” of the original gifts the Warden and Fellows have used the gifted values of the permanent endowments where known, or otherwise their values as at 31 December 1954 when a scheme of consolidation was approved by the Privy Council for those funds subject to that scheme, and as at 31 December 1985 for other funds, together with the gifted values of any subsequent additions.

1.10 Fund accounting

The total funds of the College and its subsidiaries are allocated to unrestricted, restricted or endowed funds based on the terms set by the donors. Endowed funds are further sub-divided into permanent and expendable.

Unrestricted funds can be used in furtherance of the Objects of the College at the discretion of the Warden and Fellows. The Warden and Fellows may decide that part of the unrestricted funds shall be used in future for a specific purpose and this will be accounted for by transfers to appropriate designated funds.

Restricted funds comprise gifts, legacies and grants where the donors have earmarked funds for specific purposes. They consist of either gifts where the donor has specified that both the capital and any income arising must be used for the purposes given or the income on gifts where the donor has required that the capital be maintained and the income used for specific purposes.

Permanent endowment funds arise where donors specify that the funds should be retained as capital for the permanent benefit of the College. Any income arising from the capital will be accounted for as unrestricted funds unless the donor has placed further restrictions on the use of that income, in which case it will be accounted for as a restricted fund.

Expendable endowment funds are similar to permanent endowment in that they have been given, or the College has determined based on the circumstances that they have been given, for the long-term benefit of the College. However, the Warden and Fellows may at their discretion determine to spend all or part of the capital.

Further details of the funds recognised under each heading are set out in notes 21 to 23.

1.11 Pension costs

Retirement benefits to employees of the College are provided through three pension schemes; a closed defined benefit scheme, a defined contribution scheme and the Teachers’ Pension Scheme. The pension costs charged in the Statement of Financial Activities are determined as follows:

Page 36

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES ( continued )

1.11 Pension costs (continued)

The Teachers’ Pension Scheme - This scheme is a multi-employer defined benefit pension scheme. It is not possible to identify the assets and liabilities of the Teachers’ Pension Scheme, which are attributable to the College, on a consistent and reasonable basis and therefore, as required by FRS102, the College accounts for the scheme as if it were a defined contribution scheme. The College’s contributions, which are in accordance with the recommendations of the Government Actuary, are charged in the period in which the salaries to which they relate are payable.

The Winchester College Support Staff Pension Fund - This is an occupational defined benefit scheme. The defined benefit pension scheme current service costs are charged to the Statement of Financial Activities within staff costs. The expected return on the scheme assets less the scheme interest costs are credited within other interest. The scheme actuarial gains and losses are recognised immediately as other recognised gains and losses.

The defined benefit scheme assets are measured at fair value at the balance sheet date. Scheme liabilities are measured on an actuarial basis at the balance sheet date using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term to the scheme liabilities. The resulting defined benefit asset or liability is presented separately after other net assets on the face of the Balance Sheet, although defined benefit assets may not be recognisable for statutory purposes. (See note 26).

The Winchester College Group Personal Pension Plan - This is a defined contribution group personal pension plan with Aviva (Friends Life). Employer’s pensions costs are charged in the period in which the salaries to which they relate are payable.

1.12 Operating leases

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

1.13 Financial instruments

Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and deferred income and provisions. Assets and liabilities held in foreign currency are translated to GBP at the balance sheet date at an appropriate year-end exchange rate.

1.14 Critical accounting judgements and key sources of estimation uncertainty

In the application of the College’s accounting policies, the Warden and Fellows are required to make judgements, estimates, and assumptions, about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described in the accounting policies and are summarised below:

Page 37

WINCHESTER COLLEGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

1.14 Critical accounting judgements and key sources of estimation uncertainty (continued)

1.15 Fees in Advance Scheme

Amounts received under the school’s Fees in Advance Scheme contracts for education, not yet utilised to settle school fees, are recorded as deferred income and allocated as current liabilities where the education will be provided within 12 months from the reporting date and as long-term liabilities where the education will be provided in subsequent years.

2. CHARITABLE ACTIVITIES – FEES RECEIVABLE

Gross school fees
Less: Covid-19 fee discount and rebate
Less: Total scholarships, bursaries and other awards
Add back: Bursaries and other awards paid for by
restricted funds (note 9)		 2021
£’000
29,101
(1,924)
27,177
(3,334)
23,843
982
24,825		 2020
£’000
28,681
(2,434)
26,247
(3,676)
22,571
1,006
23,577

A total of 189 awards were made in the year ( 2020: 203) to 164 individual pupils ( 2020: 176 ). Within these, means-tested bursaries were granted to 121 pupils ( 2020: 125).

3. CHARITABLE ACTIVITIES – OTHER INCOME

4.

Extras
Entrance and registration fees
Social Centre and other sales
Commissions and other income
OTHER ACTIVITIES TO GENERATE FUNDS
Trading income
Winchester College Enterprises
Other activities
CJRS receipts, interest on overdue fees, feed-in-tariff and other income		 2021
£’000
53
385
11
1
450
2021
£’000
118
689		 2020
£’000
290
423
3
1
717
2020
£’000
67
1,508

Other income includes £582,000 which was received from the Government’s Coronavirus Job Retention Scheme (CJRS) ( 2020: £1,432,000).

Page 38

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

5. INVESTMENT INCOME

NVESTMENT INCOME
Portfolio investment income
Equities
Cash
Fees-in-advance portfolio
Fixed interest
Property investment income
Rents receivable		 Unrestricted
£’000
-
-
-
36
-
36		 Restricted
£’000
-
-
-
-
-
-		 Endowed
£’000
1,023
-
1,023
-
1,850
2,873		 Total
2021
£’000
1,023
-
1,023
36
1,850
2,909		 Total
2020
£’000
1,271
11
1,282
49
1,768
3,099

6. STATEMENT OF INVESTMENT TOTAL RETURNS

The Warden and Fellows have adopted a policy of Total Return accounting for the College’s permanent endowment investment and invests on a total return basis. The return applied as income is currently 3.5% (plus costs). The preserved value of the permanent endowments represents the values of the original gifts where known or otherwise the values of the endowment assets in 1954 and 1985 as described in Note 1.9 together with subsequent additional capital received.

Investment return
Investment income
Capital gains
Investment management costs
Total return for the year
Less: application as income
Total return for the year less amount applied as
income
Unapplied total return at 1 September 2020
Unapplied total return at 31 August 2021
Preserved value		 Permanent
Endowment
£’000
58
361
(14)
405
(147)
258
1,339
1,597
2,892		 Expendable
endowment
£’000
2,815
41,731
(831)
43,715
(4,999)
38,716		 Total
£’000
2,873
42,092
(845)
44,120
(5,146)
38,974

The income taken from the permanent and expendable endowments is applied to unrestricted and restricted funds in accordance with the terms of the individual trusts and special funds that make up the endowment. Further analysis can be found in note 23.

Page 39

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

7.
BANK AND OTHER INTEREST
Bank interest
8.
DEVELOPMENT INCOME
Grants and donations
Development donations
Fundraising events and activities
Other development income
Friends of Winchester College
Alumni
Parents		 Unrestricted
£’000
70
70
Unrestricted
£’000
234
1
235
19
4
-
23		 Restricted
£’000
-
-
Restricted
£’000
2,222
-
2,222
-
-
-
-		 Endowed
£’000
-
-
Endowed
£’000
11,771
-
11,771
-
-
-
-		 Total
2021
£’000
70
70
Total
2021
£’000
14,227
1
14,228
19
4
-
23		 Total
2020
£’000
187
187
Total
2020
£’000
5,459
6
5,465
16
47
2
65

The College brings together under one “umbrella” its relations with all constituents of the Wykehamical family, including Old Wykehamists, parents past and present, the Quirister Association and the Friends of Winchester College, through Winchester College Society. The aims of the Society are to maintain and build good relations amongst the worldwide Wykehamical family, foster support for the School and support for all it seeks to achieve and encourage the culture of giving.

Page 40

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

9. ANALYSIS OF RESOURCES EXPENDED

(a)
Total expenditure
Staff costs
Depreciation
Other
(note 11)
(note 12)
£’000
£’000
£’000
Costs of raising funds
Trading costs
181
-
46
Financing costs (note 10)
-
-
1,112
Investment and estates management
29
-
816
Development costs
- Fundraising costs
307
-
128
- Other development costs
225
-
93
Total costs of raising funds
742
-
2,195
Charitable expenditure
Education and grant making
Teaching
9,925
124
1,000
Welfare
2,991
-
1,099
Premises repair and maintenance
2,335
2,998
3,599
Support costs of schooling
1,971
17
1,300
Grants, awards and prizes (note 9 (b))
-
-
1,209
17,222
3,139
8,207
Preservation of ancient buildings
and contents
52
-
463
Total charitable expenditure
17,274
3,139
8,670
Total expended
18,016
3,139
10,865
(b)
Grants, awards and prizes
Unrestricted
Restricted
£’000
£’000
Bursaries and other grants and awards paid for
by restricted funds (note 2)
-
982
Quiristers
-
179
Prizes and leaving awards
11
37
11
1,198		 Total
2021
£’000
227
1,112
845
435
318
2,937
11,049
4,090
8,932
3,288
1,209
28,568
515
29,083
32,020
2021
£’000
982
179
48
1,209		 Total
2020
£’000
246
726
544
514
370
2,400
12,321
3,878
8,734
2,646
1,260
28,839
503
29,342
31,742
2020
£’000
1,006
218
36
1,260

The College contributes to the education of the 16 Quiristers at the Pilgrims’ School.

Page 41

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

9. ANALYSIS OF RESOURCES EXPENDED (continued)

(c)
Governance included in support costs:
Remuneration paid to auditor for audit services
Other governance costs		 2021
£’000
42
53
95		 2020
£’000
43
36
79

One Fellow received remuneration of £7,740 (2020: Nil) in the year for services provided to the College in addition to those services provided in the role of Fellow. Neither the Warden, Sub Warden, nor any other Fellow, received any remuneration or other benefits from Winchester College or any connected body.

Travel expenses totalling £350 ( 2020: £2,292 ) were reimbursed to 1 member (2020: 7) of the Governing Body.

In addition to the above audit remuneration, the auditor received fees for other services totalling £22,009 ( 2020: £11,635 ).

10. FINANCE AND OTHER COSTS

Fees in advance debt financing cost
Pension Scheme net financing cost (note 26(d))
Loan interest
Other costs		 2021
£’000
40
2
1,010
60
1,112		 2020
£’000
55
3
620
48
726

Page 42

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

11. STAFF COSTS

The aggregate payroll costs for the year were as follows:

Wages and salaries
Social security costs
Pension costs
Aggregate employee-benefits of key management personnel
The number of higher paid employees, as defined by the Charities SORP, was:
£60,001 to £70,000
£70,001 to £80,000
£80,001 to £90,000
£90,001 to £100,000
£100,001 to £110,000
£120,001 to £130,000
£150,001 to £160,000
£160,001 to £170,000
£270,001 to £280,000
The number with retirement benefits accruing in
- money purchase schemes was
of which the contributions amounted to
- defined benefit schemes was		 2021
£’000
14,642
1,353
2,021
18,016
1,775
2021
No
28
11
5
2
1
1
1
-
1
7
£61,000
38		 2020
£’000
15,019
1,477
2,067
18,563
1,778
2020
No
30
13
7
2
-
1
-
1
1
10
£75,000
42

The average number of the College’s employees during the year was 533 (2020: 549). Calculated on a full time equivalent basis, there were 377 employees (2020 395), as detailed below:

Teaching
Welfare
Premises
Support
Other activities		 2021
No
152
108
70
34
13
377		 2020
No
156
116
73
35
15
395

There were £92,000 redundancy or termination payments charged during the year ( 2020: £ 157,000). There was £nil ( 2020: £ nil) outstanding at the year-end.

Page 43

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

12. TANGIBLE FIXED ASSETS

Group and College
Cost/valuation
At 1 September 2020
Additions and transfers in
Disposals and transfer out
Revaluation
At 31 August 2021
Depreciation
At 1 September 2020
Charge for the year
Disposals
Revaluation
At 31 August 2021
Net book value
At 31 August 2021
At 31 August 2020		 Freehold land and buildings
Staff
residential
houses
Boarding
houses
Campus
£’000
£’000
£’000
74,044
19,370
42,251
-
-
12,328
(1,370)
-
-
270
-
-
72,944
19,370
54,579
-
(9,631)
(10,188)
(969)
(1,135)
(879)
-
969
-
-
-
-
-
(10,766)
(11,067)
72,944
8,604
43,512
74,044
9,739
32,063		 Artefacts,
vehicles
and
equipment
£’000
3,050
247
-
-
3,297
(2,108)
(156)
-
-
(2,264)
1,033
942		 Total
£’000
138,715
12,575
(1,370)
270
150,190
(21,927)
(3,139)
-
969
(24,097)
126,093
116,788

Assets are held at historical cost less depreciation except for staff residential houses, which are shown at market value.

Assets under construction at the year end was £29.7m (2020: £17.5m)

All tangible fixed assets are held for use on charitable activities except assets with a cost of £26,000 ( 2020: £26,000) and a net book value of £Nil ( 2020: £Nil ) used in the generation of funds.

An update to the formal valuation of the Staff residential houses on a market value basis as at 31 August 2020 was prepared by Mr Gerald FitzGerald of Savills as at 31 August 2021

The College has substantial historic assets that are used in the course of the College’s activities (see note 13).

Page 44

WINCHESTER COLLEGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

13. HERITAGE ASSETS

The College has substantial historic assets which are used in the course of its activities. These collections include antiquities, ceramics, coins, watercolours, books and manuscripts, archives and Wiccamica (i.e. ephemera relating to the College), scientific equipment, silver and plated wares, furniture, sculptures, oil paintings and portraits, and the armoury. Many are unique to the College, being either commissioned by the College or donated. They are appropriately preserved, conserved and catalogued, through a continuous and evolving process. These historic assets were appraised by Sotheby’s in 2005 and are insured through an appropriate fine arts policy.

The Warden and Fellows consider that these collections are held in accordance with the College’s charitable objects as a vital part of the history and heritage of the College and a unique resource for the advancement of education, with a number having a dual use, being frequently used in the day to day operation of the College.

The majority of these historic assets have been held for many years and accurate information on value or cost is not available for these assets. However, the Warden and Fellows consider that their historical cost less depreciation would not be material. More recent acquisitions and gifts are capitalised in accordance with the College’s accounting policies and are included within Tangible Fixed Assets under the heading “Artefacts, vehicles and equipment” (note 12). At the balance sheet date, such assets had a cost of £399,000 ( 2020: £399,000 ).

14. INVESTMENTS

Investments held in support of endowed funds
(note 15)
Property investments
- Property holdings
- Residential properties
Financial assets portfolio
Investments held in support of the fees
in advance scheme (note 16)
Investments in subsidiaries		 Group
2021
2020
£’000
£’000
165,398
155,578
19,664
18,152
185,062
173,730
103,203
73,024
288,265
246,754
2,930
3,623
-
-
291,195
250,377		 College
2021
2020
£’000
£’000
165,398
155,578
19,664
18,152
185,062
173,730
103,203
73,024
288,265
246,754
2,930
3,623
60
60
291,255
250,437		 College
2021
2020
£’000
£’000
165,398
155,578
19,664
18,152
185,062
173,730
103,203
73,024
288,265
246,754
2,930
3,623
60
60
291,255
250,437
173,730
73,024
246,754
3,623
60
250,437

Page 45

WINCHESTER COLLEGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

15. INVESTMENTS HELD IN SUPPORT OF ENDOWED FUNDS

Group and College

The College invests those funds it has been given to support its activities for the long term across a spread of different asset classes. Currently there are three main components:

These investments form the principal assets of the College’s expendable and permanent endowed funds.

The property holdings and residential properties and portfolio of financial assets are managed externally.

(a)
Property holdings
Valuation at 1 September 2020
Improvements and additions at cost
Disposals at carrying value
Net revaluation gains/(losses) in the year
Valuation at 31 August 2021		 2021
£’000
155,578
2,700
(23,102)
30,222
165,398		 2020
£’000
168,852
472
-
(13,746)
155,578

The College’s property holdings consist of two main elements; farm holdings and development land at Barton Farm on the outskirts of Winchester.

A formal valuation of the farm holdings and their associated interests was prepared by Mr G FitzGerald MRICS FAAV of Savills and the Warden and Fellows, in consultation with the College’s professional advisors, have valued the College’s remaining interest in Barton Farm on a discounted cash flow basis, as at 31 August 2021.

As hitherto, any realisations of the College’s investments have to be retained within the endowed funds, and it is the Governing Body’s intention that the income is to be used to support the College’s charitable objectives, including the provision of bursaries.

(b)
Residential properties
Valuation at 1 September 2020
Improvements and additions at cost
Transfers from fixed assets
Net revaluation gains/(losses) in the year
Valuation at 31 August 2021		 2021
£’000
18,152
-
1,370
142
19,664		 2020
£’000
18,430
(34)
-
(244)
18,152

An update to the formal valuation of the residential houses on a market value basis as at 31 August 2020 was prepared by Mr Gerald FitzGerald of Savills as at 31 August 2021.

Page 46

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

15. INVESTMENTS HELD IN SUPPORT OF ENDOWED FUNDS (continued)

(c)
Financial assets portfolio
Group investments
At 1 September 2020
New money invested
New money awaiting investment
Withdrawals
Reinvested income
Amounts extracted
Investment management fees
Increase/(decrease) in value of investments
Group investments at 31 August 2021
Investments comprise:
Listed investments
Equities
Alternative assets
Hedged equities
Private equity
Commercial property
Fixed interest
Commodities
Credit and private debt
Cash
Group investments		 2021
£’000
73,024
39,495
7,916
(26,352)
1,023
(3,389)
(242)
11,728		 2020
£’000
74,669
910
-
(361)
1,282
(2,613)
(78)
(785)




103,203
2021
£,000
63,379
10,445
1,657
-
2,952
1,730
8,680
14,360
103,203		 73,024
2020
£,000
63,136
-
1,157
91
-
-
-
8,640
73,024

£7.7m of the cash balance within investments is managed by the College. The remainder of investments are managed and held in the UK by Partners Capital, Troy Asset Management Ltd and UBS AG. Within the Partners Capital portfolio, funds awaiting investment are invested in passive global equities funds managed by Blackrock. 78% of the value of the Partners Capital portfolio is now invested in funds which adhere to the Responsible Investment Policy, set by the College, against a target of 60%.

The Alpes 2008 Private Equity fund is valued at the most recent valuation available from the managers, UBS at £1.1m. The holding is illiquid and may not be realisable at the value stated.

Page 47

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

16. FEES IN ADVANCE INVESTMENTS

EES IN ADVANCE INVESTMENTS
At 1 September 2020
Money withdrawn
Reinvested income
Decrease in value of investments
Group and College investments at 31 August 2021
Investments comprise:
Listed investments
Fixed interest
Cash
Group and College investments		 2021
£’000
3,623
(728)
39
(4)
2,930
879
2,051
2,930		 2020
£’000
3,623
-
9
(9)
3,623
1,576
2,047
3,623

In addition to the above investments, the balance of the fees in advance scheme assets at the year-end were held within current assets as cash deposits. Fees in advance investments were managed and held throughout the year in the UK by J M Finn & Co.

17. DEBTORS

Fees and extras
Trade
Staff loans
Tax recoverable
Other debtors
Other prepayments and accrued income
Amounts due from subsidiary companies
Loans to subsidiary companies		 Group
2021
2020
£’000
£’000
295
249
50
57
57
47
12
11,577
5
99
99
669
-
-
-
-
12,090
1,126		 College
2021
2020
£’000
£’000
295
249
35
50
57
47
12
11,577
5
99
99
665
291
135
74
-
12,440
1,250		 College
2021
2020
£’000
£’000
295
249
35
50
57
47
12
11,577
5
99
99
665
291
135
74
-
12,440
1,250
1,250

All debtors are due within one year, except for £33,000 ( 2020: £30,000) of staff loans, which are due after more than one year.

Other debtors includes an £11.5m deferred receipt for the latest Barton Farm tranche sale which is due in August 2022.

Page 48

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

18. CREDITORS: amounts falling due within one year

REDITORS: amounts falling due within one year
Deposits from parents
Trade creditors
Taxation and social security
Other creditors
Accruals and deferred income
Deferred income - fees received in advance of Short
Half_(note 20)_
Deferred income – Fees in Advance Scheme		 Group
2021
2020
£’000
£’000
1,865
1,742
1,089
1,085
134
381
231
2,718
275
2,428
2,789
1,697
2,339
2,804
11,165
10,412		 College
2021
2020
£’000
£’000
1,865
1,742
1,089
1,075
132
379
218
2,738
274
2,448
2,789
1,697
2,339
2,804
11,170
10,419
10,419

19. CREDITORS: amounts falling due after more than one year

Loan notes_(note 27)
Other creditors
Deferred income - Fees in Advance Scheme(note 20)_		 Group
2021
2020
£’000
£’000
40,000
27,500
322
343
2,848
2,581
43,170
30,424		 College
2021
2020
£’000
£’000
40,000
27,500
322
343
2,848
2,581
43,170
30,424		 College
2021
2020
£’000
£’000
40,000
27,500
322
343
2,848
2,581
43,170
30,424
30,424

Page 49

WINCHESTER COLLEGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

20. FEES IN ADVANCE SCHEME

Parents may enter into a contract to pay the College in advance for fixed contributions towards the tuition fees for up to five years. The money may be returned subject to specific conditions on the receipt of notice. Assuming pupils will remain in the College, fees in advance will be applied as follows:

After five years
Within two to five years
Within one to two years
Within one year
Summary of movements in liability
Balance at 1 September 2020
New contracts
Amounts used to pay fees
Amounts accrued to contract as debt financing cost
Balance at 31 August 2021		 2021
£’000
-
1,497
1,351
2,848
2,339
5,187		 2020
£’000
40
1,360
1,181
2,581
2,804
5,385
£’000
5,385
2,481
(2,719)
40
5,187

21. FUNDS OF THE COLLEGE

The College’s funds are analysed under the following headings.

a) ENDOWED FUNDS

Winchester College Foundation

The Winchester College Foundation is a charitable trust settled by the Warden and Fellows in 1989 to support, promote and assist in the Objects of the College. The Warden and Fellows are its sole trustee. It is maintained as an expendable endowment. Income arising from the assets of the Foundation is available for the general purposes of the College. The Foundation owns most of the College’s residential houses and also has investments in the College’s investment properties, the pooled portfolio of stocks and shares, cash and long-term ‘loans’ to the other funds of the College to finance major projects.

Trusts and Special Funds

These consist of numerous individual gifts, legacies and grants given to the College over many years for specific purposes. A distinguishing feature of these funds is that there is an express requirement or implicit understanding that the funds shall not be spent immediately but should be retained for the medium or longterm. Where donors have explicitly specified that capital is to be maintained, they are shown as permanent endowment, otherwise as expendable endowment. In both cases income arising is shown as restricted funds. These funds are invested in the College’s pooled portfolio of stocks and shares, and cash.

Page 50

WINCHESTER COLLEGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

21. FUNDS OF THE COLLEGE (continued)

The specific endowment funds are:

Expendable endowments Al Gordon Sports Fund o to improve the sports facilities at the College. Ancient Buildings Fund o for the long-term preservation of the College’s ancient buildings with their contents for the public benefit. Archives Fund o for the conservation of the College archives and monuments. Bursary Fund o a consolidated fund of numerous individual gifts to provide bursaries to enable pupils to attend the College. Deansley Gift o for the benefit of the Scholars. Duncan Stewart Natural History o to enhance the activities and appeal of the Natural History Society. Fund Graham Drew Travel Scholarships o to fund travel to study some aspect of European civilisation. Jackson Bequest o for the general purposes of the College but with a preference for defraying the cost of publication of the Winchester College Register and the Roll and Records for Old Wykehamists. Warden Sinclair Fund o to provide assistance to pupils who are in receipt of a bursary to take full advantage of the opportunities available at the College. OWGS Micklem Coaching Fund o to develop golf at the College. Quirister Funds o to maintain the choral foundation of the Quiristers who sing at chapel services. Incorporating the Shedden fund that provides bursaries for Quiristers. Ralph & Cathy Townsend Bursary o for bursary provision. Fund Sparrow Bequest o primarily for the maintenance of the library. Thwaites Music Scholarship Fund o to provide assistance to pupils who are in receipt of a bursary of at least eighty percent to fully develop their musical potential. Warden’s Fund o for purposes beneficial to the College at the personal discretion of the Warden. Wykeham Fund o for the long-term support of bursaries and the ancient buildings and Quiristers. Permanent endowments Burge Fund o for classical books. Duncan Stewart Natural History o to fund one full time Natural History Don. Fellowship Fund Firth Bequest o for bursaries and for the augmentation of the salaries of the Chaplains of the College, for Wiccamica and to augment the capital funds of the College. Goddard Masters Fund o for stipends for the Headmaster and Second Master. Goddard Scholarships o leavers’ scholarships in the Classics. Treasury Endowment Fund o to fund the day-to-day operations of the College’s new Treasury (formerly the Museum) and study facility. Oakeshott Fund o to support cultural, social and literary activities. Wiccamica Fund o for the repair and maintenance of Wiccamica. Consolidated Libraries Funds o numerous individual gifts to support the College’s various libraries.

Page 51

WINCHESTER COLLEGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

21. FUNDS OF THE COLLEGE (continued)

Consolidated Prizes Funds o numerous individual gifts to establish prizes for pupils. Consolidated Revenue Funds o individual gifts to support the upkeep of the War Memorial, playing fields, Treasury and Boat Club. Consolidated Scholars Funds o individual gifts for the benefit of the Scholars. Consolidated Travel Fund o numerous individual gifts to help pupils travel abroad for educational purposes.

b) RESTRICTED FUNDS

Trusts and Special Funds

Included under this heading is accumulated, unspent restricted income arising from trusts and special funds.

Development and other funds

These represent current gifts, donations, legacies etc. received from external donors for specific purposes but where there is no requirement to preserve capital. Expenditure directly financed by such gifts is shown under restricted funds. The balance of items shown under the heading Development Fund represents donations for projects not yet completed. At 31 August 2021, these balances were:

Boat Club
Bursaries
D House
E House
G House
Golf
Grounds
Gym Equipment
Johnny Sutton Memorial Award
Natural History
Premises
Science School
Sports Software
War Cloister
Julian Smith Music Fund
34 other balances under £10,000		 £’000
69
116
14
49
11
35
10
24
53
22
17
19
10
261
20
82
812

Friends of Winchester College

The Friends of Winchester College, an organisation to promote relations between the College and the local community, is incorporated into the College’s results. The Friends’ Van der Noot Cricket Fund is a fund where the donors have placed restrictions on the uses to which the donations may be put. This is invested in cash.

c) UNRESTRICTED FUNDS

Unrestricted funds represent accumulated income from the College’s activities and other sources that are available for the general purposes of the College.

Page 52

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

WINCHESTER COLLEGE

22. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Current year
Staff residential houses
Other tangible assets
Property investments
Financial assets portfolio
Fees in advance investments
Foundation loan (note 25)
Net current assets
Long term liabilities
Pension Scheme funding deficit
Last year
Staff residential houses
Other tangible assets
Property investments
Financial assets portfolio
Fees in advance investments
Foundation loan (note 25)
Net current assets
Long term liabilities
Pension Scheme funding deficit		 Endowed
£’000
61,218
-
185,062
103,203
-
3,621
51,612
(40,000)
-
364,716
Endowed
£’000
62,398
-
173,731
73,024
-
3,748
28,375
(27,500)
-
313,776		 Restricted
£’000
-
-
-
-
-
-
1,223
-
-
1,223
Restricted
£’000
-
-
-
-
-
-
1,055
-
-
1,055		 Unrestricted
£’000
11,726
53,149
-
-
2,930
(3,621)
(9,524)
(3,170)
-
51,490
Unrestricted
£’000
11,646
42,744
-
-
3,623
(3,748)
(2,901)
(2,924)
(373)
48,067		 2021
Total
£’000
72,944
53,149
185,062
103,203
2,930
-
43,311
(43,170)
-
417,429
2020
Total
£’000
74,044
42,744
173,731
73,024
3,623
-
26,529
(30,424)
(373)
362,898

Page 53

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

23. ANALYSIS OF MOVEMENTS ON FUNDS (CURRENT YEAR)

Unrestricted funds
General Purposes Reserve
Pension Reserve
Restricted funds
Trusts and special funds
Development and other funds
Kingsgate Park
Friends of Winchester College
Endowed - Expendable
Al Gordon Sports Fund
Archives Fund
Deansley Gift
Drew
Duncan Stewart
Warden Sinclair Fund
Thwaites Music Scholarship
Jackson
OWGS Micklem Coaching
Fund
Sparrow Bequest
Warden’s Fund
Ancient Buildings Fund
Bursary Fund
Foundation
Quirister Funds
Shedden Fund
Wykeham Fund
Endowed - Permanent -Total*
Burge Fund
Duncan Stewart
Firth Bequest
Goddard Masters Fund
Goddard Scholarships
Treasury Endowment Fund
Oakeshott Fund
Wiccamica
Consolidated Libraries Funds
Consolidated Prizes Funds
Consolidated Revenue Funds
Consolidated Scholars Funds
Consolidated Travel Funds
Total endowment
Total Funds		 At 1
September
2020
£’000
48,440
(373)
48,067
259
787
-
9
1,055
612
146
51
190
58
1,207
42
303
56
163
336
252
18,898
281,738
113
1,023
4,387
309,575
9
1,095
769
325
62
1,479
75
5
55
205
31
48
43
4,201
313,776
362,898		 Incoming
resources
£’000
26,446
-
26,446
-
613
1,609
-
2,222
88
2
1
4
31
30
1
4
1
2
5
4
11,794
2,435
2
15
165
14,584
-
15
11
4
1
22
1
-
1
3
-
1
1
60
14,644
43,312		 Capital
applied to
income
£’000
4,043
-
4,043
1,103
-
-
-
1,103
(20)
(5)
(2)
(7)
(2)
(42)
(1)
(11)
(2)
(6)
(12)
(9)
(665)
(4,042)
(4)
(36)
(133)
(4,999)
-
(38)
(27)
(11)
(2)
(52)
(3)
-
(2)
(7)
(1)
(2)
(2)
(147)
(5,146)
-		 Resources
expended
£’000
(29,481)
461
(29,020)
(939)
(407)
-
-
(1,346)
(2)
-
-
(1)
-
(4)
-
(1)
-
(1)
(1)
(1)
(65)
(1,547)
-
(4)
(13)
(1,640)
-
(4)
(3)
(1)
-
(5)
-
-
-
(1)
-
-
-
(14)
(1,654)
(32,020)		 Other
transfers
£’000
1,811
-
1,811
(21)
(181)
(1,609)
-
(1,811)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Gains and
losses
£’000
231
(88)
143
-
-
-
-
-
66
11
4
16
5
100
3
24
4
13
27
20
4,530
37,505
9
82
334
42,753
1
95
62
26
5
118
6
-
4
17
2
4
3
343
43,096
43,239		 At 31
August
2021
£’000
51,490
-
51,490
402
812
-
9
1,223
744
154
54
202
92
1,291
45
319
59
171
355
266
34,492
316,089
120
1,080
4,740
360,273
10
1,163
812
343
66
1,562
79
5
58
217
32
51
45
4,443
364,716
417,429

Other transfers represent current year expenditure, including capital expenditure on the Winchester College Treasury, funded out of donations to restricted and expendable endowment funds, in furtherance of the Fund’s principal aims.

Page 54

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

23. ANALYSIS OF MOVEMENTS ON FUNDS (CURRENT YEAR) (continued)

The balances of the preserved Trusts for Investment within the above permanent endowment total balances is as follows:

:
Endowed – Permanent preserved
balances
Burge Fund
Duncan Stewart
Firth Bequest
Goddard Masters Fund
Goddard Scholarships
Treasury Endowment Fund
Oakeshott Fund
Wiccamica
Consolidated Libraries Funds
Consolidated Prizes Funds
Consolidated Revenue Funds
Consolidated Scholars Funds
Consolidated Travel Funds		 At 1
September
Endowment
2019
donations
£’000
£’000
4
-
941
31
299
-
127
-
5
-
1,298
-
40
-
1
-
18
-
67
-
11
-
8
-
11
-		 At 1
September
2020
£’000
4
972
299
127
5
1,298
40
1
18
67
11
8
11
2,861		 Endowment
donations
£’000
-
31
-
-
-
-
-
-
-
-
-
-
-		 At 31
August
2021
£’000
4
1,003
299
127
5
1,298
40
1
18
67
11
8
11
2,892
2,830
31		 31

Page 55

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

24. ANALYSIS OF MOVEMENT OF FUNDS (Comparative figures to page 54)

Unrestricted funds
General Purposes Reserve
Pension Reserve
Restricted funds
Trusts and special funds
Development and other funds
Kingsgate Park
Friends of Winchester College
Endowed - Expendable
Al Gordon Sports Fund
Archives Fund
Deansley Gift
Drew
Duncan Stewart
Warden Sinclair Fund
Thwaites Music Scholarship
Jackson
OWGS Micklem Coaching
Fund
Sparrow Bequest
Warden’s Fund
Ancient Buildings Fund
Bursary Fund
Foundation
Quirister Funds
Shedden Fund
Wykeham Fund
Endowed - Permanent -Total*
Burge Fund
Duncan Stewart
Firth Bequest
Goddard Masters Fund
Goddard Scholarships
Treasury Endowment Fund
Oakeshott Fund
Wiccamica
Consolidated Libraries Funds
Consolidated Prizes Funds
Consolidated Revenue Funds
Consolidated Scholars Funds
Consolidated Travel Funds
Total endowment
Total Funds		 At 1
September
2019
£’000
37,908
(380)
37,528
130
423
5,672
9
6,234
593
151
53
196
60
935
44
315
58
169
350
258
18,590
296,394
117
1,054
3,777
323,114
9
1,101
799
338
64
1,538
79
5
57
214
32
49
45
4,330
327,444
371,206		 Incoming
resources
£’000
26,518
-
26,518
-
833
2,247
-
3,080
47
3
1
5
1
324
1
6
1
3
6
7
1,308
2,507
2
26
731
4,979
-
51
14
6
1
27
1
-
1
4
1
1
1
108
5,087
34,685		 Capital
applied to
income
£’000
4,115
-
4,115
1,069
-
-
-
1,069
(19)
(5)
(2)
(7)
(2)
(33)
(2)
(11)
(2)
(6)
(12)
(9)
(654)
(4,115)
(4)
(36)
(112)
(5,031)
-
(39)
(28)
(12)
(2)
(54)
(3)
-
(2)
(8)
(1)
(2)
(2)
(153)
(5,184)
-		 Resources
expended
£’000
(29,480)
455
(29,025)
(920)
(444)
-
-
(1,364)
(1)
-
-
(1)
-
(2)
-
(1)
-
-
(1)
-
(32)
(1,298)
-
(2)
(7)
(1,345)
-
(2)
(1)
(1)
-
(3)
-
-
-
(1)
-
-
-
(8)
(1,353)
(31,742)		 Other
transfers
£’000
7,964
-
7,964
(20)
(25)
(7,919)
-
(7,964)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Gains and
losses
£’000
1,415
(448)
967
-
-
-
-
-
(8)
(3)
(1)
(3)
(1)
(17)
(1)
(6)
(1)
(3)
(7)
(4)
(314)
(11,750)
(2)
(19)
(2)
(12,142)
-
(16)
(15)
(6)
(1)
(29)
(2)
-
(1)
(4)
(1)
-
(1)
(76)
(12,218)
(11,251)		 At 31
August
2020
£’000
48,440
(373)
48,067
259
787
-
9
1,055
612
146
51
190
58
1,207
42
303
56
163
336
252
18,898
281,738
113
1,023
4,387
309,575
9
1,095
769
325
62
1,479
75
5
55
205
31
48
43
4,201
313,776
362,898

Other transfers represent current year expenditure, including capital expenditure on the Winchester College Treasury, funded out of donations to restricted and expendable endowment funds, in furtherance of the Fund’s principal aims.

Page 56

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

25. LOAN TO THE GENERAL PURPOSES RESERVE FROM THE FOUNDATION

In earlier years, certain capital works by way of investment in the College’s buildings have been financed by loans from the Foundation (endowment) to the General Purposes Reserve (unrestricted funds). This funding is being repaid over periods ranging from 10 to 30 years for College equipment and from 50 to 125 years for building improvements.

The cumulative finance of capital works on College buildings was as follows:

he cumulative finance of capital works on College buildings was as follows:
At 1 September 2020
Capital repaid
At 31 August 2021		 £’000
3,748
(127)
3,621

26. PENSION SCHEMES

Retirement benefits to employees of the College are provided through two defined benefit schemes and one defined contribution scheme, which are funded by the College’s and employees’ contributions.

(i) Defined benefit schemes

Teachers’ Pension Scheme

The School participates in the Teachers' Pension Scheme ("the TPS") for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £1,312,000 ( 2020: £1,367,000 ) and at the year-end £nil ( 2020: £nil ) was accrued in respect of contributions to this scheme.

The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers' Pension Scheme Regulations 2010 (as amended) and the Teachers' Pension Scheme Regulations 2014 (as amended). Members contribute on a "pay as you go" basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The most recent actuarial valuation of the TPS was prepared as at 31 March 2016 and the valuation report, which was published in April 2019, confirmed that the employer contribution rate for the TPS would increase from 16.4% to 23.6% from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%

The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department for Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers’ Pensions.

On 27 June 2019 the Supreme Court denied the Government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The Government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the period between 1 April 2015 and 31 March 2022 at the point they become payable.

Page 57

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

26. PENSION SCHEMES (continued)

The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following the public consultation, the Government have accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.

In view of the above rulings and decisions the assumptions used in the 31 March 2016 Actuarial Valuation may become inappropriate. In this scenario, a valuation prepared in accordance with revised benefits and suitably revised assumptions would yield different results than those contained in the Actuarial Valuation.

Until the cost cap mechanism revision is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly, no provision for any additional past benefit pension costs is included in these financial statements.

Winchester College Support Staff Pension Fund

The College operates a defined benefit scheme for non-teaching staff, the Winchester College Support Staff Pension Fund (the WCSSP Fund). The scheme was closed to new members with effect from 1 April 2002 and was closed to further accrual by existing members with effect from 31 August 2013.

Whilst no existing member contributions are being made to the scheme, the College paid contributions totalling £476,000 p.a. in respect of the past service deficit and £75,000 contribution towards the scheme’s administration costs.

Scheme administration costs are determined by the scheme’s actuary and are charged to the Statement of Financial Activities.

a) The amounts recognised in the Balance Sheet are as follows
Present value of funded obligations
Fair value of scheme assets
Effect of asset ceiling/unrecognised surplus
Net liability
b) Changes in the present value of the defined benefit obligation
Opening defined benefit obligation
Interest expense
Actuarial losses
Benefits paid
Closing defined benefit obligation		 2021
£’000
25,200
(25,839)
639
-
23,742
351
1,836
(729)
25,200		 2020
£’000
23,742
(23,369)
-
373
23,532
405
608
(803)
23,742

Page 58

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

WINCHESTER COLLEGE

26. PENSION SCHEMES (continued)

Winchester College Support Staff Pension Fund (continued)

c) Changes in the fair value of the scheme assets
Opening fair value of scheme assets
Interest income
Actual return less expected return on scheme assets
Contributions by employer
Benefits paid and expenses
Closing fair value of scheme assets		 23,369
349
2,387
551
(817)
25,839		 23,152
402
160
537
(882)
23,369
d) The amounts included within the Statement of Financial Activities
Expenses
Net interest cost
Total amount charged within net incoming resources
Net actuarial losses/(gains) recognised in the year
Total amount included within the Statement of Financial Activities
Net cumulative actuarial losses
(since year ended 31 August 2006)
The College expects to contribute £568,000 to the scheme in 2021/2022.
e) Reconciliation of movements in Present Value of
Scheme Liabilities and Assets
Net liability at beginning of the year
Movements in the year:
Employer’s expenses
Employer’s contribution
Expected return on scheme assets
Actual return less expected return on scheme assets
Interest on pension liabilities
Experience losses arising on the scheme liabilities
Changes in assumption underlying the scheme liabilities
Changes in the amount of surplus that is not recoverable
Net liability at end of the year		 2021
£’000
88
2
90
88
178
(3,573)
2021
£’000
373
88
(551)
(349)
(2,387)
351
86
1,750
639
-		 2020
£‘000
79
3
82
448
530
(3,925)
2020
£’000
380
79
(537)
(402)
(160)
405
(81)
689
-
373

Page 59

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

26. PENSION SCHEMES (continued)

Winchester College Support Staff Pension Fund (continued)

f) The major categories of scheme assets as a percentage of total assets
Bonds
Equities
Property
Hedge funds
Cash
The actual return on the scheme assets in the year was
g) Principal actuarial assumptions at the balance sheet date
Financial Assumptions:
Discount rate
Rate of increase in salaries
Inflation assumptions
-
RPI
-
CPI
The mortality assumptions adopted imply the following life
expectancies:
Females retiring in 2021
Males retiring in 2021
Females retiring in 2037
Males retiring in 2037		 2021
12%
52%
0%
7%
28%
£’000
2,736
2021
1.65%
3.85%
3.35%
2.95%
24.3
21.9
25.7
23.5		 2020
10%
57%
0%
5%
28%
100%
£’000
562
2020
1.50%
3.55%
3.05%
2.05%
24.1
22.3
25.3
23.7

h) History of experience gains and losses

Defined benefit obligation
Scheme assets
Asset ceiling/unrecognised surplus
Deficit
Experience adjustments
on scheme liabilities
Experience adjustments on scheme
assets		 2021
£’000
(25,200)
25,839
(639)
-
(86)
2,387		 2020
£’000
(23,742)
23,369
-
(373)
81
160		 2019
£’000
(23,532)
23,152
-
(380)
71
2,282		 2018
£’000
(21,309)
20,768
-
(541)
378
(66)		 2017
£’000
(23,770)
21,147
-
(2,623)
573
1,082

Page 60

WINCHESTER COLLEGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

26. PENSION SCHEMES (continued)

(ii) Defined contribution schemes

Winchester College Group Personal Pension Plan

The Winchester College Group Personal Pension Plan started in August 2007. This is a money purchase group personal pension scheme managed by Friends Life. To facilitate Auto-Enrolment, the scheme has been reorganised into a number of tiers, each with its own minimum employee and employer contribution rates. These vary between 3.0% and 5.6% for employees and 2.0% and 14.1% for employer’s contributions. In certain circumstances, employees may contract to exchange salary for higher employer’s pension contributions. The employer’s contributions are charged in the Statement of Financial Activities in the period in which the salaries to which they relate are due. The employer’s contributions in the year amounted to £551,000 ( 2020: £537,000 ). At 31 August 2021, there were £nil accrued pension contributions ( 2020: £nil ).

27. LOAN NOTE COMMITMENTS

On 27 November 2017, the Winchester College Foundation issued, by way of private placement, long term loan notes with a fixed interest rate of 2.73%, for the aggregate principal amount of £40,000,000, maturing November 2057, to provide funding to the College in furtherance of the Foundation’s charitable purposes. The first tranche of £7,500,000 was received on 27[th] May 2019. A further £20,000,000 was received on 27[th] November 2019. The third and final tranche of £12,500,000 was received on 27[th] November 2020.

Under the terms of the loan notes, there are no further tranches due to the College.

28. LEASES

The future minimum operating lease expenditure under non-cancellable operating leases are payable:

Within one year
Within two to five years		 Equipment
2021
2020
£’000
£’000
29
33
30
59
58
91		 Equipment
2021
2020
£’000
£’000
29
33
30
59
58
91
91

The future minimum operating lease income under non-cancellable operating leases are receivable:

Within one year
Within two to five years
After five years		 Land and buildings
2021
2020
£’000
£’000
1,727
1,488
520
327
542
617
2,789
2,432		 Land and buildings
2021
2020
£’000
£’000
1,727
1,488
520
327
542
617
2,789
2,432
2,432

Page 61

WINCHESTER COLLEGE NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 AUGUST 2021

29. CAPITAL COMMITMENTS

At 31 August 2021, the College had capital commitments for the Kingsgate Park Project construction works and related professional fees totalling £18.6m ( 2020: £30.8m ).

30. COLLEGE RESULTS

The College’s own results for the year included in the consolidated Statement of Financial Activities were:

Income from charitable activities
Fees and other income from charitable activities
Income from other activities
Trading income
Other income
Investment income
Interest receivable
Grants and donations
Other development income
Total income
Costs of raising funds
Trading costs
Other costs of raising funds
Charitable activities
Education and grant making
Preservation of buildings and contents
Total expenditure
Net income for year
Investment and revaluation gains and losses
Retained (loss)/income for year
Reserves brought forward
Reserves carried forward		 2021
£’000
25,275
5
763
2,909
74
14,228
23
43,277
(96)
(2,711)
(28,565)
(515)
(31,887)
11,390
43,239
54,629
363,035
417,664		 2020
£’000
24,293
13
1,564
3,099
187
5,465
65
34,686
(104)
(2,154)
(28,841)
(503)
(31,602)
3,084
(11,251)
(8,167)
371,202
363,035

Page 62

WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

31.
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Comparatives to page 30 by fund-type)		 31.
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Comparatives to page 30 by fund-type)		 31.
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Comparatives to page 30 by fund-type)		 31.
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Comparatives to page 30 by fund-type)		 31.
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Comparatives to page 30 by fund-type)		 31.
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Comparatives to page 30 by fund-type)
Notes Unrestricted Restricted Endowed 2020
Funds Funds Funds Total
£’000 £’000 £’000 £’000
Incoming resources:
Income from charitable activities
School fees receivable 2 23,577 - - 23,577
Other income 3 717 - - 717
Income from other activities
Trading income 4 67 - - 67
Other activities 4 1,508 - - 1,508
Investment income 5 49 - 3,050 3,099
Capital applied to income 6 4,115 1,069 (5,184) -
Bank and other interest 7 187 - - 187
Grants and donations 8 348 3,080 2,037 5,465
Other development income 8 65 - - 65
Total incoming resources 30,633 4,149 (97) 34,685
Expenditure:
Costs of raising funds
Trading costs 9 (246) - - (246)
Financing costs 10 (726) - - (726)
Investment management 9 - - (544) (544)
Development costs:
- Fundraising 9 (514) - - (514)
- Other activities 9 (370) - - (370)
Total costs of raising funds 9 (1,856) - (544) (2,400)
Charitable activities
Education and grant making 9 (26,676) (1,354) (809) (28,839)
Preservation of buildings and contents 9 (493) (10) - (503)
Total expenditure (29,025) (1,364) (1,353) (31,742)
Net incoming/(outgoing) resources 1,608 2,785 (1,450) 2,943
before transfers and investment gains
Gains on revaluation of tangible fixed 12
1,424		 - 2,557 3,981
assets
Losses on property investments 15 - - (13,990) (13,990)
(Losses)/Gains on financial assets portfolio 15 - - (785) (785)
(Losses)/Gains on fees in advance nvestments 16 (9) - - (9)
Transfers between funds 23 7,964 (7,964) - -
Net income and capital inflow/(outflow) 10,987 (5,179) (13,668) (7,860)
Pension scheme actuarial gains 26 (448) - - (448)
Net movement in funds for the year 10,539 (5,179) (13,668) (8,308)
Fund balances brought forward 37,528 6,234 327,444 371,206
Fund balances carried forward
at 31 August 2020 48,067 1,055 313,776 362,898

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WINCHESTER COLLEGE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2021

32. POST BALANCE SHEET EVENTS

On 4 December 2021, the Winchester College Foundation authorised for issue, by way of private placement, long term loan notes with a fixed interest rate of 2.07%, aggregate principal amount of £25,000,000, and, maturing 6 December 2061, to provide funding to the College in furtherance of the Foundation’s charitable purposes. The aggregate principal amount of £25,000,000 is scheduled for draw down on 21 September 2022, with interest charges commencing from that date.

33. SUBSIDIARIES AND RELATED PARTY TRANSACTIONS

The College owns all of the issued share capital of Winchester College Trading Company Limited, a company incorporated in England (company no. 02673873). This company carries out trading activities on behalf of the College, including the major part of the College’s commercial lettings business, which trades under the Winchester College Enterprises name.

Winchester College Trading Company Limited had a turnover of £113,000 ( 2020: £54,000 ), gross profit of £76,000 ( 2020: £20,000 ) and a loss before tax and Gift Aid of £89,000 in the year ended 31 August 2021 ( 2020: loss of £140,000) . At 31 August 2021, the company had shareholder’s funds of £(170,000) ( 2020: £(80,000) ).

The College also owns all of the issued share capital of Beam Design Limited, a company incorporated in England (company no. 02902175), which provides construction services to the College. The entire turnover of Beam Design Limited was derived from Winchester College.

In the year ended 31 August 2021 Beam Design Limited had a turnover of £(1,000) ( 2020: £(33,000) ), gross loss of £nil ( 2020: £1,000 ) and a loss before tax and Gift Aid to Winchester College of £4,000 ( 2020: £5,000 ). At 31 August 2021, the company had shareholder’s funds of £(4,000) ( 2020: £nil ).

Related party transactions

In 2021, the College charged £80,000 ( 2020: £ 46,000) to Winchester College Trading Company Limited for the provision of staff, property rental and administrative services. The balance owed to the College at 31 August 2021 was £310,000 ( 2020: £ 87,000).

In 2021, the College charged £nil ( 2020: £1,000 ) to Beam Design Limited for the provision of staff and administrative services. The balance owed to the College at 31 August 2021 was £53,000 ( 2020: £53,000 owed by the College) .

Nicholas Ferguson, a Fellow, is Chairman of Savills plc, who are the ultimate parent company of Savills (UK) Ltd, a company who provide property management, valuation and residential letting services to the College under normal commercial terms. In 2021, the College paid Savills (UK) Ltd £224,000 ( 2020: £203,000 ). The balance owed by the College at 31 August 2021 was £14,000 ( 2020: £79,000 owed to the College).

Clarissa Farr, a Fellow, received remuneration of £7,740 ( 2020: £nil ) in the year for consultancy services provided to the College in addition to those services provided in the role of Fellow. The balance owed by the College at 31 August 2021 was £nil ( 2020: £nil owed by the College).

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