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:
- 94.7% of **GCSE/IGCSE results** in the academic year 2020-2021 were A* and A grade (grade 9-7)
- 80.2% of **Pre-U grades** achieved in the academic year 2020-2021 were D1 and D2, enabling 78% of leavers to progress to Russell Group or Ivy League Universities. 34% of leavers were admitted to universities in the Top-20 of the QS global rankings
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
- A **global approach to Div** – evolving the school’s unique approach to teaching by introducing a global lens, ensuring essential preparation for the 21[st] century.
- Appointment of a **Head of Computer Science** – introducing the subject initially at GCSE.
- Launch of **Makyth Ventures** - a new entrepreneurship & innovation hub, established by seasoned entrepreneurs and focused on equipping pupils with the tools that will help them bring their business ideas to life.
- Establishment of **WinColl Futures** – a dedicated team providing Sixth Form pupils with mentoring on UK, US and International university applications, 1:1 guidance from subject specialists and regular careers events from a global alumni network.
## Access
- Appointment of a **Deputy Head Pastoral** – focused initially on welcoming girls in to the Sixth Form from 2022.
- Appointment of a **Head of Educational Partnerships** - focused on developing relationships with secondary schools in the state sector.
- Launch of **The Wykeham Award** – a dedicated bursary for pupils who join the Sixth Form from a UK state secondary school.
- **Growth of our online learning provision** – successfully introduced during the pandemic, our online provision has enabled us to share additional learning opportunities, such as virtual speaker events, with our partner schools.
## Developing the School Site
- The new **Sports Centre** development continued at pace, including the installation of one of the largest folded roof structures in Europe.
- A significant project of **improvement took place in classrooms** and surrounding spaces. Work included lighting and access upgrades to the main teaching block.
- Appointment of Stanton Williams architects to begin **planning for the new girls’ boarding house** , due to open in 2024.
## **Future milestones (2022 – 2025)**
## 2022
- The **introduction of boys and girls** as day pupils in to the Sixth Form.
- Design of the **new girls’ boarding house** concludes.
## 2023
- Launch of the new **state-of-the-art Sports Centre** with 6-lane, 25m swimming pool, café, sports hall, cardio and weights studio, squash courts and martial arts facilities.
2024
- The **introduction of girl boarders** in to the Sixth Form.
- Bursaries supporting **150 pupils. A growth in number of pupils receiving bursaries of 25% on 2020/2021.**
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:
- 12 secondary schools’ relationships formed.
- 12 careers panels shared online with secondary school partners, including Barton Peveril Sixth Form College.
- 62 teachers and technicians from the state sector attended our Physics Partners Online Festival, to support the development of professionals in this subject.
- Through our CCF Partnerships programme, 23 cadets from Andover College joined us as part of their Public Services course. A further 24 will join us next year, with the ambition to working with 48 cadets each week.
- 96 local students from Barton Peveril Sixth Form College were supported with online mock university interviews. This year, a record total of 23 offers were made from Oxford and Cambridge to Barton Peveril students.
- 24 pupils from the state sector attended our online science extension sessions, led by teaching staff from Winchester College’s science department.
- 15 local pupils attended our medical journal club, 12 attended a ‘Meet the Doctor’ event and had further one to one mentoring sessions.
- 25 students from Midhurst Rother College visited the school for learning opportunities, including an objecthandling session with objects from Ancient Egypt, Ancient Greece and 19[th] century Japan. Object-handling sessions were also held at St Faith’s Primary School and All Saints’ Primary School, using material from the College’s collections.
- Our Maths Summer School went online, involving 80 pupils from 40 state schools.
Page 7
## **WINCHESTER COLLEGE**
## **REPORT OF THE WARDEN AND FELLOWS** (continued)
## **FOR THE YEAR ENDED 31 AUGUST 2021**
- Our Maths Clubs for years 5-6, 7-8 and 9-11 all ran online for two of the three terms. Each involved approximately 20 pupils with attendees from 12 local state schools.
## **Crown and Manor Club**
- Winchester College has a longstanding relationship with the Crown and Manor Club, a boys club in Hoxton, East London. The club offers a safe and inspiring environment for boys and young men, and provides a variety of sporting, academic and recreational activities. Winchester College alumni serve on the club council and are involved in fundraising for the club. Boys from the club visit the College for sports fixtures and academic activities.
## **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.
- Quiristers currently receive 40% remission of fees at The Pilgrims’ School at an annual cost to the College of £198,000. This includes bursary support of £36,000 for five specific pupils.
- A fundraising campaign to provide additional bursary and day-to-day support for Quiristers has to date raised nearly £1,320,000.
## **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**
- Despite a long period of closure to members of the public during the pandemic, we were able to run guided tours over 65 days from August 2020 – September 2021. During this time, we welcomed 1,000 visitors in to the school.
- To maintain public access throughout lockdown restrictions, the school’s Treasury Museum launched a virtual tour via the website, social and local media outlets. It also made accessible online a variety of collections, including our watercolours, ancient Greek vases, sculpture (through a partnership with ArtUK), oil paintings and our Science School Collections. A special online exhibition entitled _‘Thomas Browne and the scientific revolution of the 17[th] century_ ’ was created and promoted to virtual visitors.
## **Archives**
- With a significant proportion of our archive now accessible online, it remained available to the general public, including historians, researchers, students, special interest groups and societies. Registered users increased from 183 to 319. During the 2020/2021 time period, there were 908 enquiries, with 78 visitors consulting more than 1,400 documents.
## **Fellows’ Library**
- We continued to provide in-person access to the Fellows’ Library when COVID-19 regulations allowed, including group visits from the Keats-Shelley Memorial Association and the Young Georgians. An online catalogue of our medieval manuscripts was also launched to improve access opportunities.
Page 8
## **WINCHESTER COLLEGE**
## **REPORT OF THE WARDEN AND FELLOWS** (continued)
## **FOR THE YEAR ENDED 31 AUGUST 2021**
## **Friends of Winchester College**
- The Friends of Winchester College is a membership organisation with the objective of forming closer bonds between the school, the local community, parents, staff, alumni and visitors through special events such as lectures, tours or social occasions. This year’s highlights included a virtual talk on Carl Faberge by Adam Rattray, Head of History of Art at Winchester College and an invitation to the Kenneth Clark Prize for Art History. In total, 18 virtual events were offered to The Friends of Winchester College during the period, with more than 900 attendees.
- Members of the Friends grew during the period from 568 in November 2020 to 622 in September 2021.
## **Heritage Open Days**
- England’s largest, free heritage festival takes place each September, showcasing the very best of heritage destinations and activities. Winchester College is the main sponsor of the festival in Winchester and in the face of the unique challenges posed by COVID-19, created a digital alternative for the 2020 festival.
- Virtual visitors were invited into the College through two exclusive video tours and a podcast, granting unlimited access to our buildings, collections and experts. The films were promoted through our website, social media channels and by local community partners and have had 23,000 views to date.
## **Facilities**
- Since April 2021, the College has agreed an overarching partnership with Hampshire County Cricket Club. Hampshire cricket players, including the Youth Academy, the Vipers and the 1st team squad, have had regular access to our cricket and sporting facilities.
- This year we welcomed Proco Football Foundation to use our playing fields, with hundreds of children and spectators from across Hampshire attending the training each week.
## **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:
- i. Financial assets portfolio – consisting of the equity, fixed income and fund holdings of the College
- ii. Real estate investment portfolio – the rural property holdings and residential properties of the College
- iii. Operational areas of the School – the grounds, immediate school buildings, boarding and staff houses and facilities operated by the school for educational purposes
- iv. Curriculum – the teaching and activities engaged in by pupils and teachers where it talks to the environmental and sustainability goals for the College
Page 9
## **WINCHESTER COLLEGE**
## **REPORT OF THE WARDEN AND FELLOWS** (continued) **FOR THE YEAR ENDED 31 AUGUST 2021**
## The Group will focus on:
- Low carbon and energy efficiency across the campus.
- Environmental sustainability within the College campus and grounds.
- Sustainable operations, including recycling, local sourcing, waste etc.
- Student education and outreach on environmental issues, including the taught curriculum and student-run clubs.
- Environmental and Sustainability policies within the financial and land assets portfolio.
Over the past year, we have made good progress:
- We managed environmental and historical landscapes in excess of 4,000 acres to a high level, including national parks, ancient woodland, sites of special scientific interest and environmentally sensitive areas.
- We have changed our electricity supply to a tariff with 100% renewable sources.
- Over 70% of our financial investment portfolio is now in Environment, Social and Governance rated assets.
## **Community Service**
- The Community Service programme partners with 40 external organisations in the City of Winchester and Southern Hampshire, and involves more than 300 pupils, 50 teachers and 18,000 hours of voluntary work each year. Partnerships across the city see pupils working at Trinity Winchester, a day centre for homeless people, and providing domestic assistance every evening at the Winchester Churches Night Shelter. Pupils undertake weekly visits to 9 local nursing homes and also support local people with a range of disabilities through our partnership with the Blue Apple Theatre group.
- As part of the Community Service programme, pupils take part in a range of activities each week focused on sustainable endeavours. This includes work with Butterfly Conservation to conserve landscapes, restore habitats and promote biodiversity. They also took part in rewilding projects, to restore watercress beds, plant native hedgerows and dug the beds for hundreds of flowering plants. Chalk Stream projects and Forest School were also run with four local schools and c.150 pupils.
## **Charity**
- The Charities Committee is formed of 12 Sixth Form pupils.
- The pupils have carried out numerous in-person and virtual fundraising initiatives over the past year in aid of the school’s three chosen charities, Winchester Young Carers, NSPCC and Stay at School Nepal. Fundraising events included a 24 hour music festival.
- The pupil-led committee donated more than £12,000 during the course of the year.
## **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.
Page 10
## **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.
Page 11
**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
||
Page 12
## **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_
Page 13
## **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.
Page 14
## **WINCHESTER COLLEGE**
## **REPORT OF THE WARDEN AND FELLOWS** (continued)
## **FOR THE YEAR ENDED 31 AUGUST 2021**
2. 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.
3. 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.
4. 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.
Page 15
## **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.
6. 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:
- i) provides an education for pupils aged thirteen to eighteen, which is recognised worldwide as being of the highest standard;
- ii) provides substantial financial support towards fee remission, benefiting nearly one fifth of the pupils in its care;
- iii) has a continuous programme of maintenance and refurbishment of its ancient buildings and other buildings and property;
- iv) allows controlled access by the public to its grounds, ancient buildings and facilities generally;
- v) holds a variety of religious services on weekdays and on Sundays, in Chapel and in Chantry, many of which are open to members of the public;
- vi) is unique amongst schools in still supporting the education, both academic and musical, of the sixteen Quiristers who sing at its services;
- vii) provides a wide range of sporting and cultural facilities, many of which are available to children from other local schools and which are also made available to members of the public;
- viii) supports the wider community by ‘community service’ and other activities; and
- ix) demonstrates significant public benefit through its academic and other activities as described in paragraphs (i) to (viii) above.
## **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.
Page 16
## **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.
Page 17
## **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:
- Formal agenda and minutes for all Governing Body and Committee activity;
- Detailed terms of reference for all Committees;
- Audit & Risk Committee, specifically focused on risk register;
- Strategic planning, budgeting, cash flow forecasting and management accounting;
- Established organisational structures and lines of reporting;
- Formal written policies;
- Clear authorisation and approval levels; and
- Well publicised policies and procedures as required by law for the safeguarding and protection of children, including procedures for the vetting of staff, volunteers and contractors.
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.
Page 18
## **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:
- just under 8,500 acres of rural property holdings with their ancillary residential, commercial, sporting and woodland interests,
- 23 residential properties in Winchester which are let out on the open market, and
- a diversified portfolio of equities, fixed income and alternative investments.
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:
- scholarships and bursaries awarded to pupils;
- the Quiristers, the College’s choral foundation;
- the preservation and maintenance of the ancient buildings; and
- other purposes specified by endowed and restricted funds.
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, Invtent
8rade e(Irpurate bund funds, UK gilts and cash. As these invvJtmEnts arE nvt hvld as port of the College's long-term
invLtmnt 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 P1ndemiC 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 mLt 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()nCLr0 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,.
$taie wholhor applicablL' acc()unting standard9 havL* bL1n lollowod. Sub)L to any matorial departurLI$
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 kLpIng 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:
- give a true and fair view of the state of the group’s and of the charity’s affairs as at 31 August 2021 and of the group’s income and receipts of endowments and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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:
- adequate and proper accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Warden and Fellows ' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **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(KLidurL*S 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 Inhet 1imltat1o vfanaudit, there i$3n unèvvldable risk that we may nvthJvL.dL7tLYtLd bUtnLi material
mitatc.MLntS in thL. linanaal statLmLnts, evL'n th()ugh we have properly planned and peTIoTmed OUT audit in
accordano. with auditing standards. For Lxample, the further remnved non-u)mpliance with laws and resulations
lirrL'sularitlL'g1 is Iri)m the i'vents and trangadi()ns reflected in the financial statements. the less likely the inherently
limitL%I prUCLdUrL tlbquifL by auditing standardy wijuld idL%ntity it. In addition, as with Any audit, thLifLi fLimainLid a
hlgher rlsk of non-dL,tectlon of treVIOrIteb, as thL'bL' may invvlvL' C()IIu5i¢)n, l()rgLTyi intLnti()nal VTni5siunb,
mi5fL'pfc8cnlalii)n.s, or the nverridL ol inti'rnal a)ntTn15. We are not re5pon5ible lor preventing noll-compliance and
cannut bL' cxpected to dL.tect non-c()mpliance with all laws and ruLatIons.
Use of OUT repoi¢
This ropor* is mado 8()loly to thLI tharity's mornir$, 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
thSe 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
4174
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:
- Valuation of land and buildings – The College’s staff residential houses and land and buildings held as investment property, are stated at their estimated fair value based on professional valuations as disclosed in note 12 and 15.
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)_
- Pensions liabilities – The College recognises its liability to its defined benefit pension scheme which involves a number of estimations as disclosed in note 26.
## **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:
- Just under 8,500 acres of rural property holdings with their ancillary residential, commercial, sporting and woodland interests in Hampshire, Dorset and Cambridgeshire,
- twenty-two residential properties in Winchester which are let out on the open market, and
- a diversified portfolio of stocks, shares and alternative investments.
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.
* - Totals of the Permanent Endowment Funds preserved Trust for Investment and Unapplied Total Return balances. See preserved balances included within these totals below:
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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