2025-07-31-accounts

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MERTON COLLEGE OX FORD

Annual Report and Financial Statements Year ended 31 July 2025

MERTON COLLEGE Year ended 31 July 2025

Governing Body, Officers and Advisers	Page	2
Report of the Governing Body	Page	6
Auditor’s Report	Page	28
Statement of Accounting Policies	Page	33
Consolidated Statement of Financial Activities	Page	41
Consolidated and College Balance Sheets	Page	42
Consolidated Statement of Cash Flows	Page	43
NotestotheFinancialStatements	Page	44

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MERTON COLLEGE Year ended 31 July 2025

MEMBERS OF THE GOVERNING BODY 1 August 2024 to 31 July 2025

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MERTON COLLEGE Year ended 31 July 2025

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||||:| |---|---|---| |The following Fellows were appointed as members of the Governing Body from 8 October||| |2025:|||

Dr Gabrielle Messeder Dr Andrés Bustamante Agudelo Dr Katharina Friege Dr Raz Slutsky Dr Sumali Bajaj (from 1 January 2026)

MERTON COLLEGE Year ended 31[July][2025]

During the year, the major activities of the Governing Body were carried out through five main committees (further details on these committees are provided in the Report of the Governing Body below). The membership of these committees is shown above for each Fellow.

Finance Committee
Warden & Tutors’ Committee
Development & Alumni Relations Committee
Remuneration Committee
Audit Committee

The Audit Committee was established in the year, following on from the decision of Governing Body in Trinity term 2024 to create the committee.

COLLEGE SENIOR STAFF

The senior staff of the College were as follows for the year ended 31 July 2025:

Professor Jennifer Payne
Professor Michael Whitworth	Sub-Warden
Mr Charles Alexander
Mr Timothy Lightfoot
Mr John Gloag	Land Agent & Estates Bursar until 31.03.25
Ms Sophie Tid	Land Agent from 09.01.25
The Revd Canon Dr Simon Jones	Chaplain until 13.09.24
The Revd Canon Justin White	Chaplain from 06.01.25
Fra’ John Eidinow	Dean & Keeper of the Statutes
Mr Mark Coote	Development Director
DrJuliaWalworth

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MERTON COLLEGE Year ended 31[July][2025]

COLLEGE ADVISERS

Investment Managers

Legal & General, One Coleman Street, London EC2R 5AA

Schroder & Co. Limited, 31 Gresham Street, London EC2V 1QA

Cerno Capital Partners LLP, 34 Sackville Street, London WiS 3ED

Auditors

Gravita Audit Oxford LLP, First Floor, Park Central, 40-41 Park End Street, Oxford, OX1 1JD

Bankers

Barclays Bank plc, Oxford City, 54 Cornmarket Street, Oxford OX1 3HB

Solicitors

HCR Hewitsons, Elgin House, Billing Road, Northampton NN1 5AB

Mills & Reeve, 112 Hills Road, Cambridge CB2 1PH

Penningtons Manches, 9400 Garsington Road, Oxford Business Park, Oxford, OX4 2HN

Farrer & Co, 66 Lincoln’s Inn Fields, London, WC2A 3LH

Wilsons LLP, Alexandra House, St Johns Street, Salisbury SP1 2SB and, Lincoln’s Inn Fields, London WC2A 3AA

Surveyors

Savills, Wytham Court, 11 Westway, Oxford OX2 OQL

Newmark Gerald Eve LLP, One Fitzroy, 6 Mortimer Street, London, W1T 3JJ

Other

Peninsula Business Services, 2 Cheetham Hill Road, Manchester M4 4FB

College address

Merton College, Merton Street, Oxford OX1 4JD

Website

www.merton.ox.ac.uk

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MERTON COLLEGE Year ended 31[July][2025]

REPORT OF THE GOVERNING BODY

Under the Charities Act 2011, the Governing Body presents its Annual Report for the year ended 31 July 2025, together with the audited financial statements for the year.

REFERENCE AND ADMINISTRATIVE INFORMATION

Merton College is a charitable corporation founded as a self-governing community of scholars first in Malden, Surrey, and then in Oxford, by Walter of Merton, Lord Chancellor of England, and Bishop of Rochester, with royal consent under statutes dated 1264 and 1274. The College's current statutes were approved by The Queen-in-Council under the Universities of Oxford and Cambridge Act 1923 on 15 July 2015. The full legal name of the College is ‘The Warden and Scholars of the House or College of Scholars of Merton in the University of Oxford’. The term ‘Fellows’ latterly replaced ‘Scholars’, and the Fellows elected under Statute 4.2(a) of the College Statutes, together with the Warden, who is the head of the College, comprise the Governing Body of the College. The College registered with the Charities Commission on 15 November 2010 (registered number 1139022). Prior to that date the College was an exempt charity under section 3(5a) of the Charities Act 1993, as listed in Schedule 2(b) to that Act.

The names of all members of the Governing Body at the date of this report and of those in office during the year, together with details of the senior staff and advisers of the College, are given on pages 2 to 5.

MERTON COLLEGE Year ended 31[July][2025]

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing documents

The College is governed by its Statutes approved in 2015 by The Queen-in-Council under the Universities of Oxford and Cambridge Act 1923.

Governing Body

The Governing Body is constituted and regulated in accordance with the College Statutes, the terms of which are enforceable ultimately by the Visitor, who is the Archbishop of Canterbury. The Governing Body is self-appointing, and membership is subject to review and renewal every seven years and ceases with retirement from office.

The Governing Body determines the ongoing strategic direction of the College and regulates its administration and the management of its finances and assets. It meets regularly under the chairmanship of the Warden and is advised by four main committees and thirty other ancillary or subsidiary committees, forums and panels (including standing appointment panels for research posts and panels which meet ad hoc to deal with disciplinary and other matters).

Recruitment and training of members of the Governing Body

New Fellows are elected to the Governing Body on the basis of their knowledge of and contribution to education, learning and research within the College and the University of Oxford, or on the basis of their possession of professional and administrative qualifications and skills that will enable them to advise and assist other members of the Governing Body.

Recommendations concerning appointments to posts qualifying the holders for Fellowships are made to the Governing Body by committees convened specifically for the purpose and chaired by the Warden. Appointment committees include expert members recruited from outside the College, and academic appointments may be made by joint process with a faculty or department of the University of Oxford.

New members of the Governing Body are inducted into the workings of the College, including their role as trustees and Governing Body policies and procedures by the senior staff of the College, are provided with written reference material explaining their roles, and may attend external trustee training and information courses to keep them informed on current issues in the sector and on regulatory requirements. All members of the Governing Body are briefed annually on the duties of trusteeship and provided

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MERTON COLLEGE Year ended 31[July][2025]

with other relevant regulatory briefings.

Remuneration of Members of the Governing Body and Senior College Staff

Members of the Governing Body receive no remuneration or benefits from their trusteeship of the College other than as provided for by the Statutes of the College. Those trustees that are also employees of the College receive remuneration for their work as employees of the College which is set based on the advice of the College’s Remuneration Committee, members of which are Fellows not employed by the College and external members. Where practical, remuneration is set in line with that awarded to the University’s academic staff.

The remuneration of senior College staff is set by the Governing Body on the advice of the Remuneration Committee in line with market norms.

Organisational management

The Governing Body meets at least nine times a year. The work of developing and monitoring the implementation of its policies is mostly carried out by five committees, described below.

Finance Committee

The Committee is responsible for advising the Governing Body on all matters concerning finance, financial administration, investment, accounting and risk management. The Committee is also responsible for the administration of the terms and conditions of employment of non-academic staff and academic staff who are not members of Governing Body (the Remuneration Committee is responsible for members of Governing Body, and employment issues may also be considered by the Equality Forum). The Committee is chaired by the Warden and has up to fourteen members, including up to three members with relevant skills who are not members of the Governing Body and include the College Accountant. It meets at least six times each year. There is an Investment Sub-Committee consisting of four members of the Governing Body, including the Warden and up to five members who have relevant professional skills and experience and who are not members of the Governing Body.

Academic Committee (Warden & Tutors’ Committee)

The Warden and Tutors’ Committee has delegated authority to make and enforce regulations on all matters concerning junior members, including their academic work, welfare, recreational use of College facilities, and disciplinary matters. The Committee reports to the Governing Body its decisions on all matters of principle on these topics and makes recommendations to the Governing Body on other relevant matters, including

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MERTON COLLEGE Year ended 31[July][2025]

material changes to the range and focus of educational activities.

The Committee is chaired by the Warden and its more than thirty members include the Senior Tutor, the subject Tutors, the Finance and Domestic Bursars, the Dean & Keeper of Statutes, the Librarian, the Chaplain and the Academic Registrar. The Committee meets at least twelve times each year. Undergraduate and graduate representatives are entitled to attend the Committee’s meetings during the unreserved agenda. Subsidiary committees are responsible for considering student discipline, teaching needs, and student support.

Development and Alumni Relations Committee

The Committee is responsible for the oversight and co-ordination of fundraising and alumni relations activities undertaken by the College, for the recommendation of policy on fundraising and alumni relations, and for the consideration of matters concerning the external relations of the College. It also has responsibility, delegated from Governing Body, for the acceptance of gifts below a £500,000 threshold, with gifts above this amount accepted by Governing Body. The Committee is chaired by the Warden and has fourteen members, including the Development Director, two student representatives and three other members with relevant skills and experience who are not members of the Governing Body. It is scheduled to meet termly.

Remuneration Committee (‘Committee on Stipends and Allowances’)

The Committee is responsible for making recommendations to the Governing Body concerning the remuneration and benefits of any member of the Governing Body who is employed by the College, or any College Officer who is not a member of the Governing Body. There are seven members of the Committee, no member of the Committee may be an employee of the College, and the chair and three other members may not be members of the Governing Body. The Committee usually meets once annually or otherwise as required.

Audit Committee

The Committee is responsible for a range of matters relating to the auditing of the College accounts including advising the Governing Body on the appointment of the College’s auditors, reviewing control of and allowing for donations, and advising the Governing Body of the coherence and resilience of the College’s Risk Register and related processes. The committee is chaired by an external member and has a majority of external members. The Committee usually meets twice a year.

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MERTON COLLEGE Year ended 31 July 2025

Other Committees

Apart from the main committees, there are committees devoted to specific areas of College life including Chapel and Patronage, Garden and Grounds, Library, and Sports. The Domestic Committee oversees all the domestic arrangements of the College. There are student representative members on most of these committees.

The Statutes & Bylaws Committee is tasked with reviewing the statutes, bylaws, regulations and policies of the College and usually meets three times a term. The Fellowship & Appointments Committee is tasked with making recommendations to Governing Body concerning election of Fellows and other appointments. It meets at least once a term.

The Warden has responsibility under the College Statutes for supervising the day-to-day running of the College, supported by the Sub-Warden, Senior Tutor, Tutors, Bursars, Chaplain, Dean & Keeper of the Statutes, Librarian and Development Director. The Warden attends meetings of nearly all the Governing Body’s Committees.

During the course of the year, the College continued to engage with the Charity Commission in reflecting on the College’s processes of governance, as did other Oxford colleges. This process is ongoing.

Group structure and relationships

The College administers many special funds as detailed in the notes to the financial statements.

The College has a wholly owned non-charitable subsidiary, Merton Enterprises Limited, whose annual profits are donated to the College under the Gift Aid Scheme. The trading activities of Merton Enterprises Limited comprise letting of the College facilities and merchandise sales.

The College has a wholly owned non-charitable subsidiary, Merton College No. 1 Limited, whose annual profits are donated to the College under the Gift Aid Scheme. The trading activities of Merton College No. 1 Limited comprise the purchase, development and sale of land and property.

The College is part of the collegiate University of Oxford. Material interdependencies between the University and the College arise as a consequence of this relationship.

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MERTON COLLEGE Year ended 31[July][2025]

OBJECTIVES AND ACTIVITIES

Charitable Objects and Aims

The College’s Objects for the public benefit are: to advance education, learning, research, and religion through the provision of a college in Oxford or elsewhere.

The College’s Aims for the public benefit are to achieve the highest outcomes in education, learning and research at national and international level; and to maintain the College Chapel as a place of public worship pursuing the highest standards of liturgical, homiletical, and musical excellence.

The Aims for the College’s subsidiaries are to help finance the achievement of the College’s Objects.

Activities of the College

The College’s principal activity is the advancement of education and learning, through provision of teaching and educational support, to approximately 600 resident undergraduate and graduate students who have been admitted as members of the College and who are engaged on a course of studies leading to the award of a degree in the University of Oxford, through the appointment or employment of Fellows and academic staff who are actively engaged in research, through the provision of accommodation and support facilities and through the provision of research grants to Fellows and students.

Public benefit

The Governing Body intends that the benefits of education and learning provided by the College should be available to the widest possible range of suitably qualified candidates, irrespective of background, and takes careful note of the guidance provided by the Charity Commission on public benefit, the advancement of education and fee-charging.

To this end, the College participates with the University of Oxford and other colleges and institutions in Oxford in an access bursary scheme to provide financial assistance to eligible home undergraduate students.

See http://www.ox.ac.uk/students/fees-funding/ for details of the Oxford Bursary Scheme.

In order to encourage applications from excellent students who might not otherwise consider applying for admission to the College, the College employs a Schools Liaison and Access Officer and operates an outreach programme, including schools’ visits, visits to the College, open days and provision of information, to establish and maintain contact with schools, school teachers and students.

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MERTON COLLEGE Year ended 31 July 2025

The College retains a team of welfare and medical advisers, who provide support and confidential counselling to students and staff who are distressed or who have special needs, and who may authorise grants and funding for referrals for specialist professional treatment or advice.

Students are provided with opportunities to contribute to College policies and practices, through participation in College committees, through formal and informal interaction with College Officers and Fellows, and through voluntary surveys and assessment processes.

The College operates student support funds which may be used to make grants to any student in financial hardship, including grants to supplement funding shortfalls and grants for special academic needs.

The College provides scholarship funds to graduates and makes grants to all students for books and equipment and travel and other research related activities.

The College provides residential accommodation for approximately 300 undergraduates and 170 graduates.

The Equality Forum comprises seven members drawn from the Governing Body, four student members, seven staff members (a College Lecturer, the HR Manager, the Academic Registrar, the Schools Liaison & Access Officer, the Student Support Administrator, and two non-academic employees of the College who are not members of GB) and one external member. The Forum considers and makes recommendations concerning equality in all aspects of College life, including admission of students and student provision and progress, as well as employment issues. The Governing Body appoints one of its members as Equality Adviser.

The College is normally open to the public during visiting hours throughout most of the year. Chapel services are open to members of the public.

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MERTON COLLEGE Year ended 31 July 2025

ACHIEVEMENTS AND PERFORMANCE

Undergraduate students

314 students were enrolled for undergraduate degree courses at the University of Oxford during the year. Of these, 266 were home (UK) students and 48 were overseas (including in the EU). 180 were studying humanities and social sciences subjects and 134 were studying mathematics, medicine and physical sciences. 107 undergraduates held College scholarships or exhibitions during the year.

86 undergraduates took Final Honour Schools examinations at the University of Oxford in 2025. Of the 86 finalists, ten took degrees classified by pass/distinction outcomes on the MSc-level year. Of these eight students achieved a distinction, one was awarded a merit and one a pass. Of the 76 students classified for first-class, 2.1, or 2.2 degrees, 28 (36.8%) achieved firsts (down from 50% in 2024), 45 (59.2%) achieved 2.1s (up from 43%) and three (4%) achieved a 2.2 degree (up from 1.1% in 2024). No students obtained a third.

Graduate students

188 graduate students were enrolled for research study leading to the DPhil degree at the University of Oxford during the year, of whom 49 were studying humanities, 71 were studying mathematics and physical sciences, 30 were studying social sciences, and 38 were studying medical sciences.

84 students were enrolled for other graduate degrees at the University of Oxford, including the EMBA/MBA, BCL/MJur, MSc, MSt, MPhil, BPhil, Diploma, and 2"? BM.

27 graduates were awarded DPhil degrees and 47 graduates were awarded other graduate degrees during the year.

21 new graduates were elected to College scholarships during the 2024-25 academic year.

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MERTON COLLEGE Year ended 31[July][2025]

Scholarships, bursaries, grants and prizes

Expenditure during the year was as follows:

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Oxford Bursaries £ 43,034
Scholarships £52,641
Other grants £127,050
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Scholarships £ 1,034,667
Research and other grants £21,595
Student support and book grants £189,931
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Welfare and disability support

The College appointed its first full-time Head of Welfare in January 2025, following the resignation of the Chaplain Revd Canon Simon Jones, whose role had previously included responsibility for the Chapel as well as the College’s welfare provision. The annual cost of staff time (Acting Head of Welfare (for Michaelmas Term 2024), Head of Welfare (from January 2025), Senior Tutor, Academic Registrar, College Nurse, Doctor and Junior Deans for Welfare) and other cost of welfare provision (including a contribution to the University Counselling Services) is of the order of £96K (2024: 84K). 21.3% (125) of the total student population in 2024-25 (79 undergraduates and 46 graduates) had known disabilities or long-term health conditions.

Schools Liaison and Access Activities

The College engaged in over 76 in-person and online schools liaison activities during the 2024-25 academic year reaching thousands of students, particularly in the south-west of England (Merton’s main regional link area). These were either Merton-only events or were held in conjunction with the University of Oxford or other Oxford or Cambridge colleges. Work continued with the South West Consortium (Merton College, Exeter College and Lady Margaret Hall) and this is expected to develop further in the coming years. Schools’ liaison activities included visits to schools and colleges, attending Higher

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Education Fairs, delivering workshops on different aspects of applications, offering taster lectures, and developing pupils’ thinking and wider academic skills. Sessions were intended to raise educational aspirations, inform course choices, highlight the benefits of higher education (including studying at Oxford and Merton), and clarify Oxford application’s processes. Three in-person open days were held (one in September and two in July), attracting overt 5,000 visitors. The College continued to develop its work with the Social Mobility Foundation, a UK-wide charity aiming to improve the social mobility of young people. In addition to online events and a one-day visit for 80, a 3-day residential visit to the College was held for a group of 35 year 12 students.

Library

The College Library provides support for teaching, learning, and research by members of the College and visiting researchers through resources, professional assistance, and through maintaining spaces conducive to productive study. The Library also contributes to the effective running of the College administration through management of records, archives, and provision of information. The Library and Archives Committee, which reports to Governing Body, has representation from Fellows, undergraduates, and postgraduates. Decisions about library services are informed by regular user experience surveys, and by frequent informal communications. The College supports staff membership in professional organizations, and staff maintain awareness of best practice through participation in University and professional groups. The College is a member of the Oxford Conservation Consortium to provide professional care and advice in relation to heritage collections and the buildings in which they are housed.

Study spaces, timely access to printed books, and access to electronic resources continue to be highlighted as top priorities in the annual student library survey. Library study spaces are used intensively and are supplemented with other rooms in College during the exam term. A total of 690 print books were acquired in 2024-2025 of which 87 were gifts. The library also participates in an initiative to co-ordinate the purchase of e-publications across the collegiate University. There were 9 accessions to the archives this year: 1 gift, 8 internal transfers (no purchases).

The Library aims to care for special collections, archives, and heritage material to professional standards, to make them known to researchers and the public, and to make them physically accessible for research and for teaching. This year the Library received 159 research visits to consult heritage items. Staff responded to 359 written enquiries (of which 272 were research-related). Information desk staff dealt with some 397 in-person enquiries this year. Library and Archive staff organized 26 temporary displays of special collections and archive items for academic and special interest

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MERTON COLLEGE Year ended 31 July 2025

groups.

Other developments in 2024-2025:

e A major project to conserve the thirty-nine stained-glass windows in the Upper Library and install ventilated protective secondary glazing, begun in summer 2021, was successfully completed in summer 2025. This work was undertaken by specialists from York Glaziers Trust.
e The historic astronomical instruments were the subject of a fixed-term project by Dr Steven Johnston to provide detailed scholarly descriptions of each of them and to create new display captions.
e The College was awarded a grant from the Friends of the Nations Libraries to help support the acquisition of a fourteenth-century collection of astronomical tables with close links to the scientific work of medieval Fellows of the College.

Fellows

Employment costs were, in respect of Teaching Fellows, £1,512K for the year; in respect _ of other teaching staff £423K for the year and in respect of Research Fellows and other Fellows (including stipends paid to part-time College Officers) £611K for the year.

Research grants of £177K were made to Fellows during the year.

Of the 44 academic Fellows on the College’s Governing Body at the end of Trinity Term 2025, 15 were Mathematical, Physical and Life Scientists, 17 were in the Humanities, 7 in the Social Sciences and 5 in the Medical Sciences. The research interests of Fellows are described further at

http://www.merton.ox.ac.uk/fellowsandresearch/fellows.shtm|

Chapel

The Revd Canon Justin White succeeded the Revd Canon Dr Simon Jones as College Chaplain in Hilary Term. The Chaplaincy during Michaelmas was covered by the Assistant Chaplain, the Revd Lyndon Webb, and the Visiting Chaplain, the Revd Christopher Collingwood.

Daily public services were held in the College Chapel throughout the academic year. The main service of the week was on Sunday evening, and it attracted an average in-person attendance of 155. Choral services were also livestreamed. 36 junior members from the College participated in the running of the Chapel.

2 baptisms and 9 weddings took place in the Chapel. Most Chapel collections were donated to charitable causes, and in the year 2024-2025 Doctors without Borders, Abingdon Bridge, Wolvercote Young People’s Club, and Christian Aid were the recipients of these.

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MERTON COLLEGE Year ended 31 July 2025

Choral Foundation

A full complement of 28 choral scholars, 3 graduate choral scholars, 1 choral bursary holder, and one organ scholar have contributed to the services in Chapel on Sundays, Tuesdays and Thursdays. On Mondays and Wednesdays, the services are sung by 31 girl choristers, who are drawn from ten different schools across Oxford. All choral services during the academic year were livestreamed through the College Choir’s YouTube account.

The College Choir’s concert schedule began with concerts in Germany. Further performances included Duruflé’s Requiem for the Martin Randall Choral Festival and Mozart’s Requiem for the Oxford International Song Festival. The Choir also gave a concert as part of The Temple Church’s Winter Festival. The Britten Sinfonia had a residency at Merton during 2025, and collaborated with the College Choir for a live broadcast on BBC Radio 3, a performance of Bach’s St John Passion and a concert of music by Stravinsky, Messiaen and Poulenc which took place at St George’s Cathedral, Southwark.

The Girl Choristers undertook a residency at Westminster Abbey in August 2025, and also sang at St George’s Chapel, Windsor. They joined the College Choir to record Benjamin Britten’s A Boy was Born in preparation for the 50" anniversary of the death of the composer.

Capital projects

There were no major capital projects undertaken in 2024-25.

Two smaller capital projects completed within the period included an extension to the boat house, providing additional workshop and storage facilities, and the installation of an internal porch at the south entrance to the Chapel.

Within routine property expenditure, two Tutors’ houses have been refurbished at 7 Manor Road and 98 Holywell Street. The external decoration of 6 Merton Street was completed, and 22 Manor Place has been refurbished to provide additional accommodation for up to 7 students.

The refurbishment of the Warden's Lodgings and garden at 19 Merton Street was completed as has the refurbishment of student accommodation in Rose Lane 4 and Mure staircase, including the renewal of a copper roof.

A major programme of stone repair work has continued to the south elevation of Fellows’ Quad and Real Tennis Court. Repairs to a section of the city wall are ongoing.

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MERTON COLLEGE Year ended 31 July 2025

The refurbishment of the MCR which includes fire compliance work on Front 4 staircase has commenced, as has the refurbishment of student accommodation in Front 5, including various energy efficiency improvements and the replacement of a slate roof. These works will be completed in the coming year.

Fundraising

The financial year 2024-25 witnessed a busy schedule of alumni events and gatherings, both in and beyond Oxford, with attendee numbers at an all-time high. The College hosted a number of alumni reunions on site - two Gaudies and two Jubilee lunches - which were equally well attended, and the biennial Merton Society Garden Party, with 420 attendees.

Fundraising for posts and scholarships has been especially strong. The Michael Huffington Chair in Eastern Orthodox Christianity has been established through the generosity of Texan philanthropist the Hon. Michael Huffington. Whilst the funding was directed to the central University the Chair will be based at Merton. The Hilary & Galen Weston Foundation assigned an additional £1.00 million of funding towards the Earth Scholarships programme announced last year, resulting in another two graduate students being awarded full scholarships.

Two DPhil Biochemistry scholarships - the Kyner-Field Scholarships in Structural Vaccinology - were established with the first recipient starting in College in Michaelmas term 2025. A graduate scholarship in Modern Languages, a new graduate scholarship in the Humanities and an unrestricted graduate scholarship have also been created.

The appeal in support of the University’s Black Academic Futures programme achieved its target, while the Refugee Academic Futures Scholarship more than met its original goal made possible by donations solicited during the March 2025 Telethon. Surplus funds will go towards a second cycle of the scholarship. The annual Telethon campaign run by student callers raised £0.18 million from members of the Merton alumni community.

The third MCR Posterity Gift for Student Support and Welfare had a 97% contribution rate, an JCR Leavers’ Gift also had a 97% contribution rate, both match funded by alumni donors.

A number of other gifts received previously in support of a new library project at the College have been helpfully repurposed towards other activities based on College need.

During the year, the College received £3.28 million in donations and legacies. Of the overall cash donated, £0.52 million was received in respect of Fellowships (teaching and research), £1.57 million towards Graduate Scholarships, £0.36 million in respect of Student Support and the Student Experience, £0.19 million for buildings projects, and £0.09 million for other purposes. £0.55 million was received in unrestricted

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MERTON COLLEGE Year ended 31[July][2025]

donations. A total of £3.03 million was pledged in new funds. The College assisted with donation by the Hon. Michael Huffington for the establishment of the Michael Huffington Chair in Eastern Orthodox Christianity within the Theology Faculty.

The College is registered with the Fundraising Regulator and employs full-time professional staff in the Development Office to act on its behalf in this area and to ensure that it is compliant with the Code of Fundraising Practice. The College, once again, did not receive any complaints relating to its fundraising activities.

FINANCIAL REVIEW

Total income for the year, £20.35 million, was £0.81 million lower than the preceding year, largely due to a reduction in donations and legacies (£1.67 million lower) and trading income (£0.04 million lower). Charitable activities income (teaching, research and residential) increased by £0.37 million, while investment income remained broadly consistent with the prior year.

Total expenditure was £24.00 million, an increase of £2.14 million. The rise reflects continued higher maintenance costs across the College estate (up £0.82 million) and additional IT investment (up £0.26 million). Expenditure on legal and professional services was £1.11 million, lower than the prior year in part due to the progress on the major development project at Yarnton. Unlike the prior year, the College did not benefit from significant pension provision releases, following the end of USS and OSPS deficit recovery contributions (which resulted in the release of the pension reserve in 2023-24 of £1.85 million).

Net income showed a deficit of £3.65 million, compared with a deficit of £0.70 million in the preceding year. Net gains on investments totaled £15.68 million (2024: £50.18 million), contributing to total funds and net assets increasing to £419.59 million from £407.55 million.

Reserves policy

The College’s reserves policy is to maintain sufficient free reserves to enable it to meet its financial obligations in the event of an unexpected revenue shortfall and to provide a buffer that would ensure uninterrupted services.

Free reserves at the year-end amounted to £5.73 million (2024: £7.80 million), representing net current assets less creditors falling due after more than one year and designated reserves.

The College’s target is to maintain free reserves of two to four months of expected expenditure. Year-end free reserves represented just under three months of expected

MERTON COLLEGE Year ended 31[July][2025]

expenditure.

Total funds of the College and its subsidiaries at the year-end amounted to £419.59 million (2024: £407.55 million). This figure includes endowment funds of £387.68 million and unspent restricted funds totaling £8.03 million. Designated reserves at the year-end comprised of the book value of tangible fixed assets of £17.95 million to be spent over their useful economic lives and £0.21 million representing an unrestricted donation received and designated by the trustees for a graduate scholarship to be spent over the next ten to fifteen years.

Going concern

The Governing Body has considered whether to adopt the going concern basis in preparing these financial statements. In support of this, it has received several briefings on the College’s finances from the Finance Bursar. The College has a healthy cash position, owns substantial endowed resources, enjoys healthy levels of demand from prospective students, and is ready and able to constrain expenditure growth if necessary. The Governing Body is therefore confident that the College has more than adequate resources to continue its activities for the foreseeable future and considers that there are no uncertainties concerning the College’s viability.

Risk management

The College has on-going processes which operated throughout the financial year for identifying, evaluating and managing the principal risks and uncertainties faced by the College and its subsidiaries in undertaking their activities. When it is not able to address risk issues using internal resources, the College takes advice from experts external to the College with specialist knowledge. Policies and procedures within the College are reviewed by the relevant College committee. Financial risks are assessed by the Finance Committee and investment risks are monitored by the Investment Sub-Committee. In addition, the Domestic Bursar and domestic staff heads meet regularly to review health and safety issues. Training courses and other forms of career development are available, when requested, to members of staff to enhance their skills in risk-related areas.

The Governing Body, who have ultimate responsibility for managing any risks faced by the College, have reviewed the processes in place for managing risk and the principal identified risks to which the College and its subsidiaries are exposed and have concluded that robust systems are in place to manage these risks. The Audit Committee is tasked with testing the coherence and resilience of the College’s Risk Register and related processes and will focus on this aspect of its remit in the coming year in particular. The principal risks and uncertainties faced by the College and its subsidiaries that have been identified are listed below:

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Principal risks related to:

e Cyber-attack and failure of shared IT infrastructure
e Welfare roles and responsibilities
e Buildings and maintenance
e Data protection - data breaches
e Recruitment and retention challenges - non-academic staff
e Recruitment and retention challenges - academic staff
e Loss of College sense of community and shared endeavor
e Insufficient/inappropriate space within the operational estate

Emerging risks related to:

e Increasing student demand for College-funded welfare and disability support
e Imbalance between research and teaching time and increased use of non-permanent academic staff
e Governing Body and students’ disparity of views on social and educational norms
e Effectiveness of decision-making structures e Evolving fund-raising environment with potential for reduced donation income e Climate change impact on property development e Sustainability subsidy opportunity e Opportunity for improved College facilities and use of space

Strategies for managing the risks identified by the College as described above include, for example:

e Establishing the appropriate committees responsible for formulating recommendations to Governing Body;
e Providing appropriate training to all members of staff and at the induction of new fellows;
e Ensuring accountability of College Officers to the appropriate committee and for the committees in turn to be accountable to the Governing Body;
e Developing and implementing key policies across the main areas of activity of the College, including, for example, admissions policy, health & safety policy, and data & information security policies; and
e Ensuring the appropriate insurance policies are in place and reviewed regularly.

Climate Change

The College recognises the risks posed by climate change and is taking action across its operations, estates and investments to reduce its carbon footprint and contribute to biodiversity net gain. The College Sustainability Working Group has now transitioned to a

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Sustainability Forum, allowing a more permanent solution to overseeing the College’s commitments, and continues to meet once a term. Through the Sustainability Forum the College’s Sustainability Strategy has been developed and approved by GB. The strategy sets out how the College aims to reach net zero by 2035 and achieve biodiversity net gain, and has seven key action areas:- Energy use, biodiversity, travel, food, waste, water and investments. The College has also introduced a Sustainability Duty into its decision-making processes ensuring that decisions and recommendations take its sustainability and biodiversity commitments into account. Alongside these actions the College has undertaken a number of steps to actively enhance sustainability and biodiversity across its activities this year including tracking food waste, creation of an iNaturalist project to track biodiversity across College sites, continuing to make its buildings more energy efficient, and increasing sustainable sourcing. The College was awarded a Gold Green Impact Award by the University in May 2025. The award was secured by the sustainability work across the College and particularly by actions to promote biodiversity in the College grounds and reduce food waste. The Gold awarded was an improvement from the Bronze previously held by the College. The College continues to invest its developed market listed equity portfolio to an ESG tilted tracker, thereby reducing the carbon emissions intensity of the portfolio. The College has adopted a similar approach to its emerging markets equity holdings, investing the portfolio in a similarly tilted ESG tracker. The Sustainability Forum, alongside the Investment Sub-committee, will be considering further enhancements to the College’s investment policy to help achieve the College’s sustainability goals.

As part of its goal to achieve net zero carbon by 2035, the College began reporting its carbon emissions last year. The College plans to develop the reporting of its emissions eventually to include emissions from its land estates and other investments as well as its operational estates across scopes 1, 2 and 3. At this time, the College is able to report on its scope 1 and 2 emissions and begin to report on some scope 3 categories, aiming to add more categories when accurate data is available. The current scope 3 emissions included are waste disposal, ‘Well to Tank’ and electricity Transmission and Distribution emissions. The carbon emissions for its operational estate as set out below for the year using the market-based method 2024-25:

Po2024-25 |[2023-24]

Due to net zero tariff

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Investment policy, objectives and performance

The College’s investment objectives are to balance current and future needs by:

e achieving a nominal return on investment sufficient to maintain or increase the real value of the investments and meet the spending objectives of the College; and
e delivering this objective within acceptable levels of risk.

To meet these objectives the College’s investments as a whole are managed ona total return basis, maintaining diversification across a range of asset classes in order to produce an appropriate balance between risk and return. The College does not use a fixed formal benchmark but compares performance with a wide range of investment indices and investor performance data. The College has made a number of direct and indirect investments that have explicit or implicit socially responsible objectives; its Investment Policy, available on the College’s website, includes the College’s policy in relation to Socially Responsible Investment.

Investment strategy, policy and performance are monitored by the Finance Committee and its Investment Sub-committee.

At the year end, the College’s aggregate long term investments totaled £387.7 million, of which £350.1 million was general endowment and the composition of which is shown in the notes to the financial statements.

The overall total investment return on the general endowment before external expenses was as follows:

Annualised total net return (in GBP) %

Merton College	5.6%
Market Returns:
Global Equities	12.8%
UK Equities	12.0%
US Equities	-2.1%
UK Gilts	-0.4%
UK Index-Linked Gilts	-7.5%
UKProperties	7.8%

The returns on the general endowment reflect the College’s asset allocation. Returns on its property investments, particularly its agricultural holdings, were modest in the year, with a number of development sales in the pipeline but yet to be completed.

MERTON COLLEGE Year ended 31[July][2025]

The carrying value of the preserved permanent capital (the trust for investment) and the amount of any unapplied total return available for expenditure was taken as the fair value of these funds as at 1 August 2002 (£88.96 million) together with the original gift value of all subsequent endowment received.

The Governing Body annually reviews the level and appropriateness of the unapplied total return allocated to income including a review of prospective investment returns, inflation and market risks. Any surplus arising during the year is reinvested in the College’s general endowment.

On the total return basis of investing, it is the Governing Body’s policy to extract as income 3.5% of the value of the relevant investments. However, to smooth and moderate the amounts withdrawn, this 3.5% is calculated on the average of the yearend values in each of the last five years. The Governing Body will keep the level of income withdrawn under review to balance the needs and interests of current and future beneficiaries of the College’s activities.

FUTURE PLANS

The Governing Body continues to consider how it can achieve the highest outcomes in education, learning and research at national and international level, and continues to review the size and shape of the College and encompassing matters of academic policy, governance and administration. College staff and students continue to contribute to the planning.

Following the condition survey of the College’s operational buildings, the College is assessing the expenditure needed to maintain its heritage buildings. The College continues to develop a multi-year plan to achieve its goals for maintenance. To facilitate these plans, and its enhance offering to students, the College is considering building new student accommodation on its Holywell Street site.

Admissions

Undergraduate applicants to Oxford are selected by the individual colleges working within a common framework to ensure that the same standards and practices apply consistently across subjects - see further: https://www.ox.ac.uk/admissions/undergraduate/applying-tooxford/decisions/common-framework

Overall application numbers across the University in 2024-25 were 23,145, a slight decrease from the previous year (23,193).

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Merton College received 734 applications, an increase from the previous year’s figure of 712 applications in 2024. 109 offers were made, of which 89 were open offers. No deferred offers for a 2026 start were made.

For information on admissions at Merton compared with other colleges, see: https://public.tableau.com/profile/sdma.oxford.university#!/

Data on ethnicity is not available to the College through the UCAS. Analysis is undertaken by the University Admissions Office retrospectively on behalf of all colleges, and can be found at:

https://www.ox.ac.uk/about/facts-and-figures/admissions-statistics/undergraduatestudents/current/ethnicity

119 applicants to Merton declared a disability in their application, of whom 14 received an offer.

Postgraduate applicants are assessed by the relevant department or faculty and all those admitted are guaranteed a college place. Merton continues to attract substantially more applicants than it has places available.

Attracting the best students from the widest possible range of backgrounds requires more than financial support. Therefore, in the UK, the College continues to develop its schools liaison programme througha full-time staff member, and aims to appeal to all constituencies by improving and enhancing web-based and electronic media and communications. The College continues to develop its recruitment of graduate scholars collaboratively with the academic faculties and departments of the University of Oxford.

Choral Foundation

In the coming year, the College Choir will perform Duruflé’s Requiem in Merton College Chapel as part of the Oxford International Song Festival. The choir will celebrate Arvo Part’s 90 Birthday with a concert at The Sheldonian Theatre and in December the choir will tour in Hong Kong and Japan. On Ash Wednesday 2026 the choir will broadcast Choral Evensong live on BBC Radio 3.

Capital projects

A feasibility study has commenced to create a new student accommodation building in Jowett Walk. Conceptually, the building would provide single accommodation for approximately 40 students and partnered accommodation for 8 couples.

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Plans to commence the next phase of refurbishment to student accommodation in Holywell Street from the summer of 2026 are being developed.

Trading income

The T S Eliot Lecture Theatre provides the College with first class facilities that are attractive to third party users. Merton Enterprises Ltd has been able to broaden its customer base following a restructuring of the conference office and proactive marketing of these facilities.

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MERTON COLLEGE Year ended 31 July 2025

STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES

The Governing Body is responsible for preparing the Report of the Governing Body and the financial statements in accordance with applicable law and regulations.

Charity law requires the Governing Body to prepare financial statements for each financial year. Under that law the Governing Body have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102: The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102).

Under charity law the Governing Body must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the College and of its net incoming or outgoing resources for that period. In preparing these financial statements, the Governing Body is required to:

e select the most suitable accounting policies and then apply them consistently;
e make judgments and accounting estimates that are reasonable and prudent;
e state whether applicable accounting standards including FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements;
e state whether a Statement of Recommended Practice (SORP) applies and has been followed, subject to any material departure which are explained in the financial statements; and
e prepare the financial statements on the going concern basis unless it is inappropriate to presume that the College will continue to operate.

The Governing Body is responsible for keeping proper accounting records that are sufficient to show and explain the College’s transactions and disclose with reasonable accuracy at any time the financial position of the College and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the College and ensuring their proper application under charity law and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Governing Body on 5 November 2025 and signed on its behalf by:

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Warden y—
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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GOVERNING BODY OF MERTON COLLEGE

Opinion

We have audited the financial statements of Merton College (the “Charity”) for the year ended 31 July 2025 which comprise the Statement of accounting Policies, the Consolidated Statement of Financial Activities, the Consolidated and College Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

e give a true and fair view of the state of the group and charity’s affairs as at 31 July 2025 and of the group’s income and expenditure for the year then ended;
e have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
e 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 Charity 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.

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MERTON COLLEGE Year ended 31 July 2025

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Members of the Governing Body’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 ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other information

The Members of the Governing Body are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our 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.

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

e sufficient accounting records have not been kept; e the financial statements are not in agreement with the accounting records and returns; or
e we have not obtained all the information and explanations necessary for the purposes of our audit.

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MERTON COLLEGE Year ended 31 July 2025

Responsibilities of the Members of the Governing Body

As explained more fully in the Statement of Accounting and Reporting Responsibilities, the Members of the Governing Body are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they 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 Members of the Governing Body are responsible for assessing the Charity’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 Members of the Governing Body 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

We have been appointed as auditor under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material mis-statement when it exists.

Mis-statements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

e the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

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e we identified the laws and regulations applicable to the charity through discussions with Members of the Governing Body and other management, and from our knowledge and experience of the client’s sector;
e we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including Charities Act 2011, Office for Students and Oxford University requirements, taxation legislation, data protection, employment and pensions, planning and health and safety legislation;
e we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and, where relevant, inspecting legal correspondence; and
e identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

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

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

e performed analytical procedures to identify any unusual or unexpected relationships;
e tested journal entries to identify unusual transactions;
e assessed whether judgments and assumptions made in determining the accounting estimates were indicative of potential bias; and
e investigated the rationale behind significant or unusual transactions;

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

e agreeing financial statement disclosures to underlying supporting documentation;
e reading the minutes of meetings of those charged with governance;

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e enquiring of management as to actual and potential litigation and claims;
e if considered necessary, reviewing correspondence with relevant regulators and the company’s legal advisors.

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:

www.frc.org.uk/auditorsresponsibilities.

This description forms part of our auditor’s report.

Use of Our Report

This report is made solely to the College’s Governing Body, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Members of the Governing Body those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the College’s Governing Body as a body, for our audit work, for this report, or for the opinions we have formed.

Gravita Audit Oxford LLP

Statutory Auditor First Floor, Park Central, 40-41 Park End Street, Oxford, OX1 1JD

Date:

Gravita Audit Oxford LLP is eligible to act as an auditor in terms of sections 1212 of the Companies Act 2006.

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STATEMENT OF ACCOUNTING POLICIES

1. Scope of the financial statements

The financial statements present the Consolidated Statement of Financial Activities (SOFA), the Consolidated and College Balance Sheets and the Consolidated Statement of Cash Flows for the College with its wholly owned subsidiaries Merton Enterprises Limited and Merton College No1 Limited. The subsidiaries have been consolidated from the date of their formation being the date from which the College has exercised control through voting rights in the subsidiaries. No separate SOFA has been presented for the College alone as permitted by the Charity Commission on a concessionary basis for the filing of consolidated financial statements. A summary of the results and financial position of the charity and its material subsidiaries for the reporting year are in note 13.

2. Basis of accounting

The College’s individual and consolidated financial statements have been prepared in accordance with United Kingdom Accounting Standards, in particular FRS 102: The Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102).

The College is a public benefit entity for the purposes of FRS 102 and a registered charity. The College has therefore also prepared its individual and consolidated financial statements in accordance with ‘The Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with FRS 102’ (The Charities SORP (FRS 102)).

The financial statements have been prepared on a going concern basis and on the historical cost basis, except for the measurement of investments and certain financial assets and liabilities at fair value with movements in value reported within the Statement of Financial Activities (SOFA). The principal accounting policies adopted are set out below and have been applied consistently throughout the year.

3. Accounting judgments and estimation of uncertainty

In preparing financial statements it is necessary to make certain judgments, estimates and assumptions that affect the amounts recognised in the financial statements.

In the view of the Governing Body, in applying the accounting policies adopted, no judgments were required that have a significant effect on the amounts recognised in the financial statements.

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In the view of the Governing Body, no assumptions concerning the future or estimation of uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

4. Income recognition

All income is recognised once the College has entitlement to the income, the economic benefit is probable and the amount can be reliably measured.

a. Income from fees, office for student support and other charges for services

Fees receivable are recognised in the period in which the related service is provided and are stated net of any scholarships, bursaries or other allowances granted from the College’s unrestricted funds, Office for Students support and charges for services and use of the premises.

b. Income from donations, grants and legacies

Donations and grants that do not impose specific future performance-related or other specific conditions are recognised on the date on which the charity has entitlement to the resource, the amount can be reliably measured and the economic benefit to the College of the donation or grant is probable. Donations and grants subject to performance-related conditions are recognised as and when those conditions are met. Donations and grants subject to other specific conditions are recognised as those conditions are met or their fulfilment is wholly within the control of the College and it is probable that the specified conditions will be met.

Legacies are recognized following grant of probate and, once the College has received sufficient information from the executor(s) of the deceased’s estate to be satisfied that the gift can be reliably measured and that the economic benefit to the College is probable.

Donations, grants and legacies accruing for the general purposes of the College are credited to unrestricted funds.

Donations, grants and legacies which are subject to conditions as to their use imposed by the donor or set by the terms of an appeal are credited to the relevant restricted fund or, where the donation, grant or legacy is required to be held as capital, to the endowment funds. Where donations are received in kind (as distinct from cash or other monetary assets), they are measured at the fair value of those assets at the date of the gift.

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c. Investment income

Interest on bank balances is accounted for on an accruals basis with interest recognised in the period to which the interest relates.

Income from fixed interest debt securities is recognised using the effective interest rate method.

Dividend income and similar distributions are recognised on the date the share interest becomes ex-dividend or when the right to the dividend can be established.

Income from investment properties is recognised in the period to which the rental income relates.

5. Expenditure

Expenditure is accounted for on an accruals basis. A liability and related expenditure is recognized when a legal or constructive obligation commits the College to expenditure that will probably require settlement, the amount of which can be reliably measured or estimated.

Grants awarded that are not performance-related are charged as an expense as soon as a legal or constructive obligation for their payment arises. Grants subject to performance-related conditions are expensed as the specified conditions of the grant are met.

All expenditure, including support costs and governance costs are allocated or apportioned to the application expenditure categories in the Statement of financial Activities (SOFA).

Support costs which include governance costs (costs of complying with constitutional and statutory requirements) and other indirect costs are apportioned to expenditure categories in the SOFA 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. Irrecoverable VAT is included with the item of expenditure to which it relates.

Intra-group sales and charges between the College and its subsidiaries are excluded from trading income and expenditure in the consolidated financial statements.

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6. Tangible fixed assets

Land is stated at cost. Buildings and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.

Expenditure on the acquisition or enhancement of land and on the acquisition, construction and enhancement of buildings which is directly attributable to bringing the asset to its working condition for its intended use and amounting to more than £5,000 together with expenditure on equipment costing more than £5,000 is capitalised.

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

7. Depreciation

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

Freehold properties, including major extensions 50 years Building improvements 20 years Equipment 5 to 10 years

Freehold land is not depreciated. The cost of maintenance is charged in the SOFA in the period in which it is incurred.

At the end of each reporting period, the residual values and useful lives of assets are reviewed and adjusted if necessary. In addition, if events or change in circumstances indicate that the carrying value may not be recoverable then the carrying values of tangible fixed assets are reviewed for impairment.

8. Heritage Assets

The College has a number of assets, including items of art and historic texts that meet the definition of heritage assets under the SORP. The College retains information concerning the cost or value on donation only for some of its heritage assets, but disclosure of this information would not give a fair picture of the total value of heritage assets held. The cost of obtaining fair values for the remaining heritage assets would not be commensurate with the benefits to users of the financial statements. Therefore, no cost or value is reflected in the financial statements for heritage assets.

36|Page

MERTON COLLEGE Year ended 31 July 2025

9. Investments

Investment properties are initially recognised at their cost and subsequently measured at their fair value (market value) at each reporting date. Purchases and sales of investment properties are recognised on exchange of contracts.

Listed investments are initially measured at their cost and subsequently measured at their fair value at each reporting date. Fair value is based on their quoted price at the balance sheet date without deduction of the estimated future selling costs.

Investments such as hedge funds and private equity funds which have no readily identifiable market value are initially measured at their costs and subsequently measured at their fair value at each reporting date without deduction of the estimated future selling costs. Fair value is based on the most recent valuations available from their respective fund managers.

Changes in fair value and gains and losses arising on the disposal of investments are credited or charged to the income or expenditure section of the SOFA as ‘gains or losses on investments’ and are allocated to the fund holding or disposing of the relevant investment.

10. Other financial instruments

a. Derivatives The College has not entered into any derivative contracts.
b. Cash and cash equivalents Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less.
c. Debtors and creditors Debtors and creditors receivable or payable within one year of the reporting date are carried at their transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest.

12. Stocks

Stocks are valued at the lower of cost and net realisable value, cost being the purchase price ona first in, first out basis.

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MERTON COLLEGE Year ended 31[July][2025]

13. Foreign currencies

The functional and presentational currency of the College and its subsidiaries is the pound sterling.

Transactions denominated in foreign currencies during the year are translated into pounds sterling using the spot exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into pounds sterling at the rates applying at the reporting date.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the exchange rates at the reporting date are recognised in the income and expenditure section of the SOFA.

14. Total Return investment accounting

The College statutes authorise the College to adopt a ‘total return’ basis for the investment of its general endowment. The College can invest its general endowment without regard to the capital/income distinctions of standard trust law and with discretion to apply any part of the accumulated total return on the investment as income for spending each year. Until this power is exercised, the total return is accumulated as a component of the endowment known as the unapplied total return that can be either retained for investment or released to income at the discretion of the Governing Body.

Other endowments are invested with Schroder & Co Ltd and Cerno Capital Partners LLP, which distribute on a total return basis.

15. Fund accounting

The total funds of the College and its subsidiaries are allocated to unrestricted, restricted or endowment funds based on the terms set by the donors or set by the terms of an appeal. Endowment 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 Governing Body. The Governing Body 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 specified that the funds are to be used for particular purposes of the College.

MERTON COLLEGE Year ended 31 July 2025

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 or permitted the capital be maintained and with the intention that the income will be used for specific purposes within the College’s objects.

Permanent endowment funds arise where donors specify that the funds should be retained as capital for the permanent benefit of the College. Any part of the total return arising from the capital that is allocated to income will be accounted for as unrestricted funds unless the donor has placed 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 Governing Body may at their discretion determine to spend all or part of the capital.

16.Pension Costs

The College participates in the Universities Superannuation Scheme (USS) and the University of Oxford Staff Pension Scheme (OSPS). These schemes are hybrid pension schemes, providing defined benefits as well as benefits based on defined contributions. The assets of each scheme are held in a separate trusteeadministered fund. Because of the mutual nature of the schemes, the assets are not attributed to individual employers and scheme-wide contribution rates are set. The College is therefore exposed to actuarial risks associated with other employers’ employees and is unable to identify its share of the underlying assets and liabilities of the schemes on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, the College therefore accounts for the schemes as if they were wholly defined contribution schemes. As a result, the amount charged to the income and expenditure account represents the contributions payable to each scheme and any deficit recovery contributions payable under a scheme Recovery Plan.

Where a scheme valuation determines that the scheme is in deficit on a technical provisions basis (as was the case following the 2020 USS valuation), the trustee of the scheme must agree a Recovery Plan that determines how each employer within the scheme will fund an overall deficit. The College recognises a liability for the contributions payable that arise from such an agreement (to the extent that they relate to a deficit) with related expenses being recognised through the income statement. Further disclosures relating to the deficit recovery liability can be found in note 22.

39|Page

MERTON COLLEGE Year ended 31[July][2025]

FRS 102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control such as the Universities Superannuation Scheme and OSPS. The accounting for a multi-employer scheme, where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit, results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense in profit or loss in accordance with section 28 of FRS 102. The College is satisfied that USS and OSPS meet the definition of a multi-employer scheme.

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Merton College Consolidated Statement of Financial Activities For the year ended 31 July 2025

		Unrestricted Funds	Restricted Funds	Endowed Funds	2025 Total	2024 Total
	Notes	£'000	£'000	£'000	£'000	£'000
INCOME AND ENDOWMENTS FROM:
Charitable activities:	1
Teaching, research and residential		7,378	8	-	7,386	7,021
Other Trading Income	3	654	~	-	654	695
Donations and legacies	2	552	2,032	695	3,279	4,945
Investments
Investment income	4	16	1,498	6,964	8,478	8,495
Total return allocated to income	14	10,318	-	(10,318)	-	-
Other income	4	2	=	551	553	4
Total income		18,920	3,538	(2,108)	20,350	21,160
EXPENDITURE ON:	5
Charitable activities:
Teaching, research and residential		18,587	1,709	153	20,449	18,058
Generating funds:
Fundraising		669	-	<	669	562
Trading expenditure		507	“	“	507	553
Investment management costs		9	=	2,362	2,371	2,682
Total Expenditure		19,772	1,709	2,515	23,996	21,855
Net Income/(Expenditure) before gains		(852)	1,829	(4,623)	(3,646)	(695)
Net gains/(losses) on investments	11, 12	-	10	15,672	15,682	50,183
Net Income/(Expenditure)		(852)	1,839	11,049	12,036	49,488
Transfers between funds	18	203	(1,105)	902	-	-
Net movement in funds for the year		(649)	734	11,951	12,036	49,488
Fund balances brought forward	18	24,531	7,295	375,725	407,551	358,061
Fundscarriedforwardat31July		23,882	8,029	387,676	419,586	407,549

Merton College Consolidated and College Balance Sheets As at 31 July 2025

		2025	2024	2025	2024
		Group	Group	College	College
	Notes	£'000	£'000	£'000	£'000
FIXED ASSETS
Tangible assets			17,945	16,493	17,945
Property investments	11	189,407	186,905	179,912	177,410
Other Investments	12	206,297	196,116	215,804	205,640
Total Fixed Assets		413,649	399,514	413,661	399,543
CURRENT ASSETS
Stocks		389	417	385	415
Debtors	15	2,346	1,852	2,304	1,675
Cash at bank and in hand		6,044	8,197	5,649	7,845
Total Current Assets		8,779	10,466	8,338	9,935
LIABILITIES
Creditors: Amounts falling due within one year	16	2,837	2,419	2,614	2,162
NET CURRENT ASSETS		5,942	8,047	5,724	7,773
TOTAL ASSETS LESS CURRENT LIABILITIES		419,591	407,561	419,385	407,316
CREDITORS: falling due after more than one year	17	5	11	5	11
TOTAL NETASSETS		419,586	407,550	419,380	407,305
FUNDS OF THE COLLEGE
Endowment funds	18	387,676	375,725	387,597	375,674
Restricted funds	18	8,028	7,294	8,028	7,294
Unrestricted funds
General funds		5,724	7,796	5,597	7,603
Fixed Asset fund		17,945	16,494	17,945	16,493
Graduate Scholarship Fund		213	241	213	241
Pension reserve	22	-	-	-	-
		419,586	407,550	419,380	407,305

The financial statements were approved and authorised for issue by the Governing Body of Merton College on 5 Noveroer dows Trustee: “V3 eC OStee Trustee: (, A. NA {\ Leyor.dt/

Merton College Consolidated Statement of Cash Flows For the year ended 31 July 2025

=}.$e

		2025	2024
	Notes	£'000	£'000
Netcash provided by(used in) operating activities	24	(11,665)	(10,614)
Cash flows from investing activities
Dividends, interestand rents from investments Proceeds from the sale of property, plant and equipment Purchase ofproperty, plantand equipment Proceeds from sale ofinvestments Purchaseofinvestments Netcash provided by(used in) investing activities		8,478 - (2,657) 4,513 (4,482) 5,852	8,494 “ (1,103) 13,923 (10,850) 10,464
Cash flows from financing activities
Receiptofendowment Netcash provided by(used in) financing activities		695 695	1,637 1,637
Change incashandcash equivalents inthe reporting period Cash and cash equivalents at the beginning ofthe		(5,118)	1,487
reporting period		34,972	33,485
Cash and cash equivalents attheend ofthe reporting period	25	29,854	34,972

Merton College

Notes to the financial statements For the year ended 31 July 2025

INCOME FROM CHARITABLE ACTIVITIES
	2025	2024
Teaching, Research and Residential!	£'000	£'000
Unrestricted funds
Tuition fees - UK and EU students	1,424	1,431
Tuition fees - Overseas students	1,349	1,150
Other Office for Students support	245	249
Other academic income	113	125
College residential income	4,247	4,058
	7,378	7,013
Restricted funds
College residential income	8	8
	8	8
Total Teaching, Research and Residential	7,386	7,021
Totalincomefromcharitableactivities	7,386	7,021

The above analysis includes £3,018k received from Oxford University from publicly accountable funds under the CFF Scheme (2024: £2,830k).

To Support the strategic priority to fund more graduate scholars and to enable outstanding students to take up their places regardless of their financial position, for graduates students with overseas fee status funded through the Clarendon or UKRI scholarship funding schemes, the callege shares of the fees waived amounted to £84k (2024: £57k). These are not included in the fee income reported above,

2	DONATIONS AND LEGACIES
		2025	2024
		£'000	£'000
	Donations and Legacies
	Unrestricted funds	552	598
	Restricted funds	2,032	2,710
	Endowed funds	695	1,637
		3,279	4,945
3	INCOME FROM OTHER TRADING ACTIVITIES
		2025	2024
		£'000	£'000
	Subsidiary company trading income	536	411
	Subsidiary company farming income	118	284
		654	695
4	INVESTMENT INCOME
		2025	2024
		£'000	£'000
	Unrestricted funds
	Bank interest	16	22
		16	22
	Restricted funds
	Equity dividends	1,304	1,346
	Interest on fixed term deposits and cash	194	67
		1,498	1,413
	Endowed funds
	Agricultural rent	1,252	1,209
	Commercial rent	2,136	2,038
	Other property income	693	682
	Equity dividends	1,345	1,401
	Income from fixed interest stocks	319	309
	Interest on fixed term deposits and cash	1,145	1,405
	Other investment income	69	11
	Bank interest	5	5
		6,964	7,060
	TotalInvestmentincome	8,478	8,495

During the year, the College recognised a one-off receipt linked to a planning settlement, Whilst the receipts are not part of the College's core investment revenue stream, they are disclosed under ‘Other Income’ to ensure transparancy. The College does not regard these receipts as recurring.

Merton College

Notes to the financial statements For the year ended 31 July 2025

ANALYSIS OF EXPENDITURE
	2025	2024
	£'000	£'000
Charitable expenditure
Direct staff costs allocated to:
Teaching, research and residential	8,169	6,053
Other direct costs allocated to:
Teaching, research and residential	9,304	9,409
Support and governance costs allocated to:
Teaching, research and residential	2,976	2,596
Total charitable expenditure	20,449	18,058
Expenditure on raising funds
Direct staff costs allocated to:
Fundraising	462	342
Investment management costs	400	278
Other direct costs allocated to:
Fundraising	142	159
Trading expenditure	507	550
Investment management costs	1,935	2,365
Support and governance costs allocated to:
Fundralsing	65	61
Investment management costs	36	39
Total expenditure on raising funds	3,547	3,797
Totalexpenditure	23,996	21,855

The College is liable to be assessed for Contribution under the provisions of Statute XV of the University of Oxford. The Contribution Fund is used to make grants and loans to colleges on the basis of need. Contributions are calculated annually in accordance with regulations made by the Council of the University of Oxford. The teaching and research costs include College Contribution payable of £387k (2024 - £347k).

6 ANALYSIS OF SUPPORT AND GOVERNANCE COSTS

		Teaching			Teaching
	Generating Funds £'000	and Research £'000	2025 Total £'000	Generating Funds £'000	and Research £'000	2024 Total £'000
Financial administration	18	345	363	13	234	247
Domestic administration	6	98	104	8	136	144
Human resources	19	337	356	27	323	350
TT Depreciation Loss/(profit) on fixed assets	53 - -	940 1,202 -	993 1,202 -	39 53 =	672 1,129 -	7l1 1,129 -
Bank interest payable Other finance charges	4 1	od 21	4 22	9 1	= 65	9 66
Governance costs	ss	33	33	6	37	43
	101	2,976	3,077	103	2,596	2,699

Financial and domestic administration, IT and human resources costs are attributed according to the estimated staff time spent on each activity. Depreciation costs and profit or loss on disposal of fixed assets are attributed according to the use made of the underlying assets. Interest and other finance charges are attributed according to the purpose of the related financing. Governance costs are attributed according to the estimated staff time spent on each activity.

	2025	2024
	£'000	E'000
Governance costs comprise:
Auditor's remuneration - audit services	33	27
Auditor's remuneration - tax advisory services	=	:
Other governance costs	-	16
	33	43

No amount has been included in governance costs for the direct employment costs or reimbursed expenses of the College Fellows on the basis that

these payments relate to the Fellows involvement in the College's charitable activities. Details of the remuneration of the Fellows and their reimbursed expenses are included as a separate note within these financial statements.

Merton College Notes to the financial statements For the year ended 31 July 2025

Notes to the financial statements

7	GRANTS AND AWARDS	2025	2024
		£'000	£'000
	During the year the College funded research awards and bursaries to students from its restricted and
	unrestricted fund as follows:
	Unrestricted funds
	Grants to individuals:
	Scholarships, prizes and grants	536	679
	Bursaries and hardship awards	49	5
	Grants to other institutions	=	*
	Total unrestricted	585	684
	Restricted funds
	Grants to individuals:
	Scholarships, prizes and grants	709	579
	Bursaries and hardship awards	206	277
	Grants to other institutions	=	=
	Total restricted	915	856
	Endowed funds
	Grants to other institutions	153	274
	Total restricted	153	274
	Total grants and awards	1,653	1,814
8	STAFF COSTS
		2025	2024
	The aggregate staff costs for the year were as follows.	£'000	£'000
	Salaries and wages	7,629	7,259
	Social security costs	842	746
	Pension costs:
	Continuation charges	934	965
	Pension Provision Change (see note 22)	-	(1,929)
	Other benefits	478	373
		9,883	7,414
	The average number of employees of the College, excluding Trustees,
	ona full time equivalent basis was as follows.	2025	2024
	Tuition and research	43	44
	College residential	91	92
	Fundraising Support	. 6 13	6 13
	Total	153	155
	The average number ofemployed College Trustees during the year was as follows.
	University Lecturers	20	18
	CUF Lecturers	7	8
	Other teaching and research	11	14
	Other	10	10
	Total	48	50
	Redundancy payments are accounted for in the period in which the employee was informed of the decision. Where	redundancy costs are uncertain, the
	figure in the accounts represents a best estimate. These costs will be met through unrestricted funds.
	The following information relates to the employees of the College excluding the College Trustees. Details of the remuneration and reimbursed expenses
	of the College Trustees is included as a separate note in these financial statements.
	The number of employees (excluding the College Trustees) during the year whose gross pay and benefits (excluding employer NI and pension
	contributions) fell within the following bands was:
	£60,001-£70,000	5	3
	£70,001-£80,000	=	1
	£80,001-£90,000	1	“
	The number of the above employees with retirement benefits accruing was as follows:
	In defined benefits schemes	5	3
	In defined contribution schemes	1	1
	TheCollegecontributionstodefinedcontributionpensionschemestotalled	8	9

Merton College

Notes to the financial statements

For the year ended 31 July 2025

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ee
9 TANGIBLE FIXED ASSETS
College and Group Freehold Fixtures,
land and fittings and
buildings equipment Total
£'000 £'000 £'000
Cost
At start of year 34,216 3,727 37,943
Additions 2,535 120 2,655
Disposals fa - -
At end of year 36,751 3,847 40,598
Depreciation and impairment
At start of year 18,666 2,784 21,450
Depreciation charge for the year 976 227 1,203
Depreciation on disposals - - =
Impairment = 7 -
At end of year 19,642 3,011 22,653
Net book value
At end of year 17,109 836 17,945
At start of year 15,550 943 16,493
The above includes:
£0k (2024:£0k) of plant and machinery held under finance leases,
£11k (2024:£17k) of fixures and fittings held under finance leases.
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During the year, the College operated a salary sacrifice Electric Vehicle (EV) scheme for its employees. The College has recognised a right~of-use asset and corresponding lease liability for the vehicles leased as part of the scheme. The right-of-use asset is depreciated over the lease term of 36 months. The College has substantial long-held historic assets all of which are used in the course of the College’s teaching and research activities. These comprise listed buildings on the College site, together with their contents comprising works of art, ancient books and manuscripts and other treasured artefacts. Because of their age and, in many cases, unique nature, reliable historical cost information is not available for these assets and could not be obtained except at disproportionate expense. However, in the opinion of the Trustees the depreciated historical cost of these assets is now immaterial.

10 HERITAGE ASSETS

The heritage assets held by the college comprise medieval manuscript books (328); medieval and early modern records of the college and its estates dating from the twelfth century (c10,000 pre-1800 items including deeds, surveys, court rolls, maps, and various other records); rare printed books (15th-19th centuries: c14,000; 20th-21st century: 3,500 rare editions and special copies); collections of personal papers (21 mixed-media collections); early astronomical instruments (5); 18th century globes (2); paintings, prints, and drawings (360); sculpture (23); historic table and chapel silver (16); miscellaneous historic furnishings (e.g. chests, clocks etc). Most new acquisitions are by gift or bequest. Criteria for decisions on whether to acquire heritage items include complementarity with existing collections, the intellectual appropriateness of the college as repository, and the ability of the college to house the collection appropriately and make it available to researchers. The college does not dispose of heritage assets.

Heritage assets are managed by the Fellow Librarian and the Domestic Bursar under the oversight of the Library and Archives Committee and the SubCommittee on Pictures and Historic Chattels. There are four full-time professional librarians and a professional archivist is employed three days per week. The college is a member of the Oxford Conservation Consortium, a Charitable Incorporated Organisation, which employs eight conservators (three ACR Icon accredited) and others working towards accreditation, who provide preservation expertise and treatment of individual items. Specialist advice is sought when needed. Heritage items are housed in a number of locations throughout the college with special security, fire detection and fire suppression in the main storage areas. The environments of storage areas and rooms housing significant assets are regularly monitored and managed under the guidelines in PAS 198:2012 Specification for managing environmental conditions for cultural collections.

Records of heritage assets are held in a combination of electronic and hard-copy formats. These are freely available for research consultation either online or on site, The college maintains a programme of exhibitions onsite and loans items for display in the context of public exhibitions in the UK and abroad.

Various heritage assets have been acquired during the last five years including purchases amounting to £21.5k in the current year (2024: E6k).

Summary of heritage asset transactions	2025	2024	2023	2022	2021
	£'000	£'000	£'000	£'000	£'000
Purchases
Manuscripts & Books	17.0	7	=	T3.1	*
Paintings	4.5	-	25.1	8.0	75
Donations
Manuscripts and books	2	5.0	-	4.3	*
Paintings	-	1.0	-	=	=
Totaladditions	21.5	6.0	25.1	25.4	7.5

Merton College

Notes to the financial statements For the year ended 31 July 2025

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |11|PROPERTY|INVESTMENTS| |Group|2025|2024| |Agricultural|Commercial|Other|Total|Total| |£'000|£'000|£'000|£'000|£'000| |Valuation|at|start|of|year|121,040|46,438|19,427|186,905|152,272| |Additions|and|improvements|at|cost|332|=|365|697|911| |Disposals|(629)|-|(425)|(1,054)|(1,552)| |Revaluation|gains/(losses)|in|the|year|1,439|1,283|138|2,859|35,274| |Valuation|at|end|of year|122,182|47,721|19,505|189,407|186,905| |College|2025|2024| |Agricultural|Commercial|Other|Total|Total| |£'000|£'000|£'000|£'000|£'000| |Valuation|at|start|of|year|121,041|36,942|19,427|177,410|142,777| |Additions|and|improvements|at|cost|332|=|365|697|1,401| |Disposals|(629)|-|(425)|(1,054)|(2,042)| |Revaluation|gains/(losses)|in|the|year|1,439|1,283|137|2,859|35,274| |Valuation|at end|of year|122,183|38,225|19,504|179,912|177,410|

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During the year, the College identified a presentation error in the comparative information disclosed in the financial statements. Certain amounts previously included within Note 11 have been redistributed between Property types to ensure consistency with the current year’s presentation. This adjustment relates solely to the presentation of information and has no impact on the total income, expenditure, net movement in funds, or the balance of funds brought forward or carried forward for the prior year.

Estates land and property valuations as at the 31 July have been made by two independent firms of Chartered Surveyors with the basis of the valuation being market valuation, In a small number of cases the valuations have been made solely by the Land Agent, the basis of valuation being market valuation.

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|||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---| |12|OTHER|INVESTMENTS| |All|investments|are|held|at|fair|value.| |2025|2024| |£'000|£'000| |Group|investments| |Valuation|at|start|of|year|196,116|182,289| |New|money|invested|4,104|17,107| |Amounts|withdrawn|(6,747)|(18,189)| |(Decrease)/increase|in|value|of|investments|12,823|14,909| |Group|investments|at|end|of year|206,296|196,116| |Investment|in|subsidiaries|9,514|9,514| |plus:|cash|reserves|within|subsidiaries|included|in|group|figures|above|(6)|10| |College|investments|at|end|of year|215,804|205,640| |Group|investments|comprise:|Held|outside|Held|in|2025|Held|outside|Held|in|2024| |the|UK|the|UK|Total|the|UK|the|UK|Total| |£'000|£'000|£'000|£'000|£'000|£'000| |Equity|investments|-|105,621|105,621|2|93,986|93,986| |Global|multi-asset|funds|-|37,661|37,661|=|33,102|33,102| |Fixed|interest|stocks|-|8,398|8,398|-|8,919|8,919| |Alternative|and|other|investments|20,589|10,217|30,806|22,699|10,635|33,334| |Fixed|term|deposits|and|cash|12,887|10,923|23,810|14,236|12,539|26,775| |Proceeds|due|from|disposal|of|property|-|-|-|-|-|-| |Total|Group|investments|33,476|172,820|206,296|36,935|159,181|196/116|

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Merton College Notes to the financial statements For the year ended 31 July 2025

13 PARENT AND SUBSIDIARY UNDERTAKINGS The College holds 100% of the issued share capital in Merton Enterprises Limited, a company providing conference and other event services on the College premises, and 100% of the issued share capital in Merton College No. 1 Limited, an investment property company.

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||||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |The|results|and|their|assets|and|liabilities|of|the|parent|and|subsidiaries|at|the|year end|were|as|follows.| |2025|2025|2025|2024|2024|2024| |Parent|Merton|Merton|Parent|Merton|Merton| |College|Enterprises|No.|1|College|Enterprises|No.|1| |£'000|Limited|Limited|Limited|Limited| |£'000|£'000|£'000|£'000|£'000| |Income|19,591|636|121|20,284|688|118| |Expenditure|(23,600)|(423)|(43)|(21,230)|(455)|(67)| |Donation|to College|under|gift|aid|252|(201)|(51)|135|(67)|(68)| |Result|for the year|(3,757)|12|27|(811)|166|17)| |Total|assets|421,934|400|9,605|409,682|547|9,572| |Total|liabilities|(2,619)|(194)|(89)|(2,381)|(238)|(82)| |Net|funds|at the|end|of year|419,315|206|9,516|407,301|309|9,490|

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14 STATEMENT OF INVESTMENT TOTAL RETURN

The Trustees have adopted a Policy of total return accounting for the College general endowment investment returns with effect from 1 August 2013. The investment return to be applied as income is calculated as 3.5% of the average closing value of the investments in each of the last five years, The amount applied as income for spending is included within the income section of the SOFA on the basis that this gives a clearer understanding of the financial position of the College. The preserved value of the invested endowment capital represents its open market value in 2002 together with all subsequent endowments valued at the date of the gift.

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |General|Endowment|Restricted|Total| |Trust|for|UnappliedTotal|Endowments|Endowments| |Investment|Return|Total|Total| |£'000|£'000|£'000|£'000|£'000| |At|the|beginning|of the|year:| |Gift component of the|permanent endowment|88,957|-|88,957|zs|88,957| |Unapplied|total|return|253,448|253,448|-|253,448| |Restricted|endowment|funds|=|2|x|33,320|33,320| |Total|Endowments|88,957|253,448|342,405|33,320|375,725| |Movements|in|the|reporting|period:| |Gift|of endowment|funds|-|-|:|695|695| |InvestmentInvestment|return:return:|totalrealisedinvestmentand|unrealisedincomegains|-|7,515|7,515|=|7,515| |and|losses| |Less:|~|12,878|12,878|2,794|15,672| |Other|Investmenttransfers|management|costs|.|(2,362)|(2,362)|(153)|(2,515)| |Total|:|-|:|902|902| |2|18,031|18,031|4,238|22,269| |Unapplied|total|return|allocated|to|income|in|the| |renortino|neriod|-|(10,318)|(10,318)|-|(10,318)| |Expendable|endowments|transferred|to|income|22|=|=|$$| |«|(10,318)|(10,318)|=|(10,318)| |Net movements|in|reporting|period|*|7,713|7,713|4,238|11,951| |At|end|of|the|reporting|period:| |Gift component of the permanent endowment|88,957|.|88,957|=)|88,957| |Unapplied|total|return|so|261,161|261,161|=|261,161| |Expendable endowment|=|=|:|37,558|37,558| |Total Endowments|88,957|261,161|350,118|37,558|387,676|

----- End of picture text -----

Merton College

Notes to the financial statements For the year ended 31 July 2025

15	DEBTORS
				2025	2024	2025	2024
				Group	Group	College	College
				£'000	£'000	£'000	£'000
	Amounts falling due within one year:
	Trade debtors			540	436	513	269
	Amounts owed by College members			-	4	-	4
	Amounts owed by Group undertakings			-	=	41	59
	Loans repayable within one year			14	14	14	14
	Prepayments and accrued income			1,594	1,160	1,538	1,091
	Other debtors			5	6	5	6
	Amounts failing due after more than one year:
	Other debtors			193	232	193	232
				2,346	1,852	2,304	1,675
16	CREDITORS: falling due within one year
				2025	2024	2025	2024
				Group	Group	College	College
				£'000	£'000	£'000	£'000
	Obligations under finance leases			6	6	6	6
	Trade creditors			1,545	906	1,532	898
	Amounts owed to College Members			57	23	57	22
	Amounts owed to Group undertakings			-	-	-	-
	Taxation and social security			110	47	82	9
	Accruals and deferred income			921	1,247	739	1,046
	Other creditors			198	190	198	181
				2,837	2,419	2,614	2,162
17	CREDITORS: falling due after more than one year
				2025	2024	2025	2024
				Group	Group	College	College
				£'000	£'000	£'000	£'000
	Obligations under finance leases			5	tL	5	11
				5	11	5	11
	The College recognises a right-of-use asset and corresponding lease		liability for vehicles leased as part of a salary sacrifice Electric Vehicle (EV)
	scheme. The lease liability represents the present value of future lease payments			deducted from employees’ salaries.		Interest is accrued on the lease liat
	at a discount rate of 3.61%.
18	ANALYSIS OF MOVEMENTS ON FUNDS
		At 1 August	Incoming	Resources		Gains/	At 31 July
		2024 £'000	resources £'000	expended £'000	Transfers E'000	(losses) £'000	2025 £'000
	Endowment Funds - Permanent General Endowment	342,357	7,445	(2,298)	(10,318)	12,878	350,064
	Fellowship and tutorship Funds:
	Baker Tutorial Support	1,007	25	=	-	85	1,117
	Peter Braam Research Fellow	1,416	-	a	=	120	1,536
	Chemistry Tutor	926	"	si	S:	77	1,003
	English Tutor	1,375	1	-	.	110	1,486
	Law Tutor	627	5	=:	=	48	680
	Philosophy Tutor	1,199	*	.	=	99	1,298
	Jessica Rawson Modern Asian HistoryTutor	1,059	.	°	°	87	1146
	Regius Professorship	-	185	(153)	.	2	32
	Mark Reynolds History Tutor	1,912	-	-	-	157	2,069
	Graduate Scholarship Funds:
	Ripplewood Japanese Scholar	636	-	-	74	59	769
	Peter Braam Scholar	424	E	=	-	36	460
	John Barton BCL Scholar Christopher Duggan Scholar	149 584	“ 1	a] 2	- -	12 49	161 634
	Roger Highfield Scholar	628	5	=	-	52	685
	Charles Manby Scholar	488	=	=	*	41	529
	Moussouris Rhodes Scholar	867	-		-	72	939
	Other	101		=	=	8	109
	Student Support Funds:
	Taylor Family Foundation	655	-	-	-	54	709
	Reed Rubin Directors of music Other	763 70	* -	“e 7	- -	63 6	826 76
		357,243	7,667	(2,451)	(10,244)	14,113	366,328

18 ANALYSIS OF MOVEMENTS ON FUNDS

Merton College

Notes to the financial statements For the year ended 31 July 2025

For the year ended 31 July 2025
i		L
Endowment Funds - Expendable
Tutorship Funds: Dominic Welsh Mathematics Tutor	1,225	-	7	rn	102	1,327
Douglas Algar Humanities Tutor	885	=	=	-	73	958
Economics Tutor	1,027	*	=	m	84	1,111
David Hay Medical Tutor	408	*	-	-	34	442
Christine Blackwell Classics Tutor	1,818	-	-	*	143	1,961
Library Fellowship	106	ba	-	“	9	115
History Tutor	a	200	"	178	12	390
Chaplain Graduate Scholarship and Student Prize Funds:	=	2	-	83	*	83
James Jackson Natural Sciences Scholar	820	-	-	147	83	1,050
David Stevens International Development S	460	-	>	>	38	498
Merton Lawyers BCL/Mjur Scholar	388	«	-	“	32	420
Merton-Oxford Scholar	561	7	=	=	46	607
Monica Barnett Law Scholar	166	-	a	*	14	180
John Moussouris Mathematics Scholar	662	>	*	=	55	717
Stringer Scholar	541	-	-	-	45	586
Buckee Scholarship	1,129	50	-	-	96	1,275
Harry Bush Scholarship	25	23	-	-	3	51
Graduate Scholarships Other	wigs 31	13 bd	:	420	12 2	558 33
Student Support Funds:
General Student Support	2,439	57		-	201	2,697
Howard Stringer Undergraduate Support	1,233	2	=	=	102	1,335
Undergraduate Student Support	928	46	-		78	1,052
John Roberts	588	a	=	S	48	636
Thomas Bowman	325	=	*	*	31	356
Gerald David Clayton	815	>	-	=	68	883
Aruna & Arijit Chakraverty Bursaries Choral Foundation	20 962	= 84	(21) =	* be	- 82	(1) 1,128
Compassionate Fund	355	.	“	-	31	386
Fitzhenry Biomedical Research Fund	151	=	=	-	14	165
Other Funds	250		-	=	21	271
	18,431	473	(21)	828	1,559	21,270
Total Endowment Funds - College	375,674	8,140	(2,473)	(9,416)	15,672	387,597
Endowment funds held by subsidiaries	S1	70	(42)	o	*	79
Total Endowment Funds - Group	375,725	8,210	2,515)	(9,416)	15,672	387,676
Restricted Funds
Building Projects	2,431	268	*	(880)	(30)	1,789
Fellowship and Tutorship funds	622	687	(627)	a	7	689
Graduate scholarship and student prize funds	2/314	1,885	(623)	(221)	7	3,355
Students Support funds	880	304	(254)	2	33	963
Choir Other funds	529 518	263 130	(184) (20)	- (4)	« -	608 624
Total Restricted Funds - College	7,294	3,538	1,709)	1,105)	10	8,028
Restricted funds held by subsidiaries	-	-	=	=	#	-
Total Restricted Funds - Group	7,294	3,538	1,709)	(1,105)	10	8,028
Unrestricted Funds
General funds	7,603	5,509	(17,828)	10,322	>	5,606
Fixed Asset fund	16,493	2,456	(1,203)	199	=	17,945
AidanJenkinsgraduatescholarshipfund	241	-	(28)	-	:	213
Pension reserve	2	%	%	Bs	-	»
Total Unrestricted Funds - College	24,337	7,966	(19,061	10,521	=	23,764
Unrestricted funds held by subsidiaries	193	636	(711)	-	=	118
Total Unrestricted Funds - Group	24,530	8,602	(19,772)	10,521	a!	23,882
TotalFunds	407,549	20,350	(23,997)	=	15,682	419,586

Merton College Notes to the financial statements For the year ended 31 July 2025

At	1 August 2023 £'000	Incoming resources £'000	Resources expended £'000	Transfers £'000	Gains/ (losses) £'000	At 31 July 2024 £'000
Endowment Funds - Permanent
General Endowment	299,175	7,009	(2,615)	(9,677)	48,465	342,357
Fellowship and tutorship Funds:
Baker Tutorial Support	907	48	™	-	52	1,007
Peter Braam Research Fellow	1,340	-	-	*	76	1,416
Chemistry Tutor	878	-	-	-	48	926
English Tutor	1,302	2	-	-	71	1,375
Law Tutor	590	7	-	=.	30	627
Philosophy Tutor	1,137	-	-	-	62	1,199
Jessica Rawson Modern Asian History Tutor	1,004	“	=	-	55	1,059
Regius Professorship	m	274	(274)	-	3	-
Mark Reynolds History Tutor	1,812	-	=	-	100	1,912
Graduate Scholarship Funds:
Ripplewood Japanese Scholar	601	-	-	-	35	636
Peter Braam Scholar	402	2	=	-	22	424
John Barton BCL Scholar	141		-	-	8	149
Christopher Duggan Scholar	570	3	-	=	11	584
Roger Highfield Scholar	589	6	-	-	33	628
Charles Manby Scholar	462	-	-	-	26	488
Moussouris Rhodes Scholar	821	-	-	-	46	867
Other	96	=	=	=	5	101
Student Support Funds:
Taylor Family Foundation	620	=	=	=	35	655
Reed Rubin Directors of music	723	*	7	=	40	763
Other	65	1	=	-	4	70
	313,235	7,380	(2,889)	(9,677)	49,224	357,243
Endowment Funds - Expendable
Tutorship Funds:
Dominic Welsh Mathematics Tutor	1,160	*	i	=	65	1,225
Douglas Algar Humanities Tutor	838	é	2	-	47	885
Economics Tutor	974	=	-	«	53	1,027
David Hay Medical Tutor	386	-	=	-	22	408
Christine Blackwell Classics Tutor	1,727	-	-	-	91	1,818
Library Fellowship	100	=	=	=	6	106
Graduate Scholarship and Student Prize Funds:
James Jackson Natural Sciences Scholar	772	2	-	=	48	820
David Stevens International Development S	436	-	i	-	24	460
Merton Lawyers BCL/Mjur Scholar	368	.	=	=	20	388
Merton-Oxford Scholar	535	-	-	>	26	561
Monica Barnett Law Scholar	157	E	.	i	9	166
John Moussouris Mathematics Scholar	627		=	=	35	662
Stringer Scholar	512	-	-	-	29	541
Buckee Scholarship	-	1,129	-	-	-	1,129
Harry Bush Scholarship Other	= 128	25 9	- =:	- =	* 7%	25 144
Student Support Funds:
General Student Support	2,284	29	-	-	126	2,439
Howard Stringer Undergraduate Support	1,168	-	-	-	65	1,233
Undergraduate Student Support	832	50	-	-	46	928
John Roberts	556	1	=	-	31	588
Thomas Bowman	305	7	=	=	20	325
Gerald David Clayton Aruna & Arijit Chakraverty Bursaries Choral Foundation Compassionate Fund	772 20 900 336	* 40 13 -	= = -“ =	~ (41) - “	43 zl 49 19	815 20 962 355
Fitzhenry Biomedical Research Fund OtherFunds	142 255	- z	- Ss	- =	9 (5)	151 250
	16,290	1,296	=	(41)	886	18,437
Total Endowment Funds - College	329,525	8,646	(2,889)	(9,718)	50,110	375,680
Endowment funds held by subsidiaries	67	51	(67)	-	-	51
TotalEndowmentFunds-Group	329,592	8,697	(2,956)	(9,718)	$0,110	375,725

Merton College

Notes to the financial statements

For the year ended 31 July 2025

Restricted Funds
Building Projects	1,177	1,212	(3)	(3)	48	2,431
Fellowship and Tutorship funds	641	669	(692)	-	4	622
Graduate scholarship and student prize funds	1,553	1,229	(468)	-	-	2,314
Students Support funds Choir Other funds	853 324 421	312 498 211	(347) (229) (44)	41 (64) (70)	21 - -	880 529 518
Total Restricted Funds - College	4,969	4,131	(1,783)	(96)	73	7,294
Restricted funds held by subsidiaries	-	-	“	*	*	“
Total Restricted Funds - Group	4,969	4,131	(1,783)	(96)	73	7,294
Unrestricted Funds
General funds	8,358	7,644	(16,554)	8,155	-	7,603
Fixed Asset fund	16,519	*	“	(26)	*	16,493
Aidan Jenkins graduate scholarship fund	444	:	-	(203)	-	241
Pension reserve	(1,888)	=	ad	1,888	*
Total Unrestricted Funds - College	23,433	7,644	(16,554)	9,814	=	24,337
Unrestricted funds held by subsidiaries	67	688	(562)	-	-	193
Total Unrestricted Funds - Group	23,500	8,332	(17,116)	9,814	2	24,530
Total Funds	358,061	21,160	21,855)	=	50,184	407,550
FUNDS OF THE COLLEGE DETAILS
The following is a summary of the origins and purposes of each of the Funds
Endowment Funds - Permanent:
General Endowment Fund	Corporate capital, including founder's capital, whose income may				be spent for general purposes.
Fellowship and Tutorship, Graduate scholarships,	Donations made for perpetuity, whose income may be spent for the restricted purpose described.
student support funds and Reed Directors of
Music
Endowment Funds - Expendable:
Fellowship and Tutorship Funds	Donations made for the long term, whose income			and capital may both be spent for
	the restricted purposes described,
Graduate Scholarship and Student Prize Funds:
Student Support Funds
Choral Foundation
Compassionate Fund
Fitzhenry Biomedical Research Fund
Restricted Funds:
Building Projects	Donations made for specific College building projects before completion. Funds are
	transferred to the Building Project Fund within Unrestricted Funds once the building
	has been completed.
Fellowship and Tutorship Funds	Unspent income generated from the		permanent and expendable		endowments above
Graduate Scholarships and Student Prize Funds	and donations made for restricted purposes which the trustees may spend at their discretion.
Student Support Funds
Choir
Designated Funds
Fixed Assets Fund	Represents the original cost less accumulated depreciation of the College's fixed assets.
Aiden Jenkins Graduate Scholarship fund	Represents an unrestricted donation		received and designated by		the Trustees for a
	graduate scholarship less accumulated costs of scholarships.
The General Unrestricted Funds represent accumulated income from the College's activities and other sources that					are available for the general	purposes
oftheCollege

19 FUNDS OF THE COLLEGE DETAILS

Agreement between donors and the College was reached in the year to enable the repurpose of £681k (2024: ENil) from Restricted Building Project Funds to Endowment Tutorship and Studentship funds.

Merton College

Notes to the financial statements For the year ended 31 July 2025

ANALYSIS OF NET ASSETS BETWEEN FUNDS
	Unrestricted Funds	Restricted Funds	Endowment Funds	2025 Total
	£'000	£'000	£'000	£'000
Tangible fixed assets	17,945	-	-	17,945
Property investments	-	-	189,408	189,408
Other investments	-	8,029	198,268	206,297
Net current assets/(liabilities)	5,942	-	=	5,942
Long term liabilities	(5)	-	-	(5)
	23,882	8,029	387,676	419,587
PriorYearAnalysis of NetAssets Between Funds	Unrestricted Funds	Restricted Funds	Endowment Funds	2024 Total
	£'000	£'000	£'000	£'000
Tangible fixed assets	16,493	-	-	16,493
Property investments	*	oa	186,904	186,904
Other investments	=	7,294	188,821	196,115
Net current assets/ (liabilities) Long term liabilities	8,047 (11)	= -	- -	8,047 (11)
	24,530	7,294	375,725	407,549

21 TRUSTEES' REMUNERATION

The Trustees of the College are the members of the Governing Body, primarily those Fellows who are employed to undertake teaching and research and who sit on Governing Body by virtue of their employment.

No Fellow receives any remuneration for acting as a Trustee. However, those Fellows who are also employees of the College receive salaries in respect of their employment. In the case of teaching and research posts, salaries are set with reference to pay scales applying nationally within the higher education sector and within the University of Oxford. Salaries are determined in all cases by the Governing Body on the basis of recommendations made by the remuneration committee, whose composition is described in the Annual Report of the Governing Body.

Trustees of the College fall into the following categories:

(i) The Warden, who is the Head of College and chairs meetings of the Governing Body and its committees;

(ii) Official Fellows, who are elected to the office of Tutor, Bursar, Librarian, Chaplain, Development Director or other office of the College;

(iii) Professorial Fellows, who are senior members of the University of Oxford;

(iv) Fixed-term research Fellows, who may be either junior career-development employees of the College, or senior academics who are not employed by the College.

College Officers and career-development research Fellows may be accommodated by the College. 35 Fellows (2024: 33) were accommodated in houses, flats or rooms owned by the College during the year. Fellows who are eligible for accommodation but

who are not accommodated are paid a housing allowance, which is included within the salary figures below.

Some Fellows receive allowances for work carried out as part-time College Officers, including the Sub Warden, Principal of Postmasters and Research Convener. These amounts are included within the remuneration figures below.

The total remuneration and taxable benefits included below is £2,416k (2024: £2,494k). The total of pension contributions is £281k (2024: £342k).

| |

Merton College

Notes to the financial statements For the year ended 31 July 2025

Remuneration paid to trustees

			2025			2024
	Number of		Gross remuneration, taxable	Number of
Range	Trustees Fellows	/	benefits and pension contributions	Trustees Fellows	/	Gross remuneration, taxable benefits and pension contributions
			é				£
£0-£5,000		2	6,373		3		4,123
£5,001-£10,000		7	50,904		2		15,323
£10,001-£15,000		1	27,357		2		27,297
£15,001-£20,000		1	19,955		1		16,004
£20,001-£25,000		3	43,568		2		48,310
£25,001-£30,000		7	193,940		11		305,100
£30,001-£35,000		3	94,276		3		96,099
£35,001-£40,000		2	72,481		1		38,514
£40,001-£45,000		2	82,583		4		168,228
£45,001-£50,000		8	381,053		6		282,307
£50,001-£55,000		1	50,627		1		$4,853
£55,001-£60,000		1	56,749		i		$8,443
£60,001-£65,000		3	186,038		3		184,977
£65,001-£70,000		2	132,864		0		=
£70,001-£75,000		0	=		1		73,306
£75,001-£80,000		0	-		0		-
£80,001-£85,000 £85,001-£90,000		DF 2	81,860 176,594		2 1		163,464 85,303
£90,001-£95,000 £95,001-£100,000		(e} 1	= 99,135		1 0		90,138 -
£100,001-£105,000		0	-		0		-
£105,001-£110,000		Q	-		1		107,032
£110,001-£115,000 £115,001-£120,000 £120,001-£125,000		4: ie) 3	114,724 “ 369,374		1 3 i?)		112,752 352,343 7
£125,001-£130,000		1	127,877		1		126,304
£130,001-£135,000 £135,001-£140,000		ie} ie}	2 -		0 1		se 136,607
£140,001-£145,000		0	=		0		=
£145,001-£150,000		ie}	“		1		147,766
£150,001-£155,000		1	151,968		1		154,099
£155,001-£160,000 £160,001-£165,000 £165,001-£170,000 £170,001-£175,000 £175,001-£180,000		ie} (e} 0 ie} ai	= = 176,784		0 (e} [e} ie} ie}		“ s * 2 -
Total		54	2,697,083	54			2,848,692

11 Fellows (2024: 9) were not employed by the College during the year and did not receive any remuneration. All Fellows and all permanent employees of the college are eligible for private health insurance. All Fellows may take meals in College, together with all employees, who are entitled to take meals whilst working.

Trustee expenses

No Fellow claimed any expenses for work as a trustee

Other transactions with trustees

There were no other transactions between the College and Fellows or related parties.

See also note 28 Related Party Transactions

Key management remuneration

The total remuneration paid to key management, including employer's national insurance contributions, was £2,971k (2024: £3,104k).

Key management are considered to be the Trustees of the College.

Merton College Notes to the financial statements For the year ended 31 July 2025

22 PENSION SCHEMES

The College participates in two principal pension schemes for its staff — the Universities Superannuation Scheme (USS) and the University of Oxford Staff Pension Scheme (OSPS). The assets of each scheme are held in separate trustee-administered funds. USS and OSPS are contributory mixed benefit schemes (i.e. they provide benefits on a defined benefit basis - based on length of service and pensionable salary — and on a defined contribution basis - based on contributions into the scheme). Both are multi-employer schemes and the College is unable to identify its share of the underlying assets and liabilities relating to defined benefits of each scheme on a consistent and reasonable basis.

Therefore, in accordance with the accounting standard FRS 102 paragraph 28.11, the College accounts for the schemes as if they were defined contribution schemes. As a result, the amount charged to the Income and Expenditure Account represents the contributions payable to the schemes in respect of the accounting period. In the event of the withdrawal of any of the participating employers in USS or OSPS, the amount of any pension funding shortfall (which cannot be otherwise recovered) in respect of that employer will be spread across the remaining participating employers and reflected in the next actuarial valuation of the scheme.

The College has also made available the National Employment Savings Trust for employees who are eligible under automatic enrolment regulations to pension benefits but not eligible for either USS or OSPS.

Schemes accounted for under FRS 102 as defined contribution schemes

Deficit Recovery Plans

For USS, a deficit recovery plan was put in place as part of the 2020 valuation, which required payment of 6.2% of salaries over the period 1 April 2022 until 31 March 2024, at which point the rate would increase to 6.3%. No deficit recovery plan was required under the 2023 valuation because the scheme was in surplus on a ‘technical provisions’ basis. The College was no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision to the income and expenditure account in the prior year. The latest available complete actuarial valuation of the Retirement Income Builder, the defined benefit part of the scheme, is as at 31 March 2023 (the valuation date), which was carried out using the projected unit method. Since the College cannot identify its share of USS Retirement Income Builder (defined benefit) assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.

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|||||||||||||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |The|2023|valuation|was|the|seventh|valuation|for|the|scheme|under|the|scheme-specific|funding|regime|introduced|by|the|Pensions|Act|2004,|which| |requires|schemes|to|have|sufficient|and|appropriate|assets|to|cover|their|technical|provisions|(the|statutory|funding|objective).|At|the|valuation|date,| |the|value|of|the|assets|of|the|scheme|was|£73.1|billion|and|the|value|of|the|scheme’s|technical|provisions|was|£65.7|billion|indicating|a|surplus|of|£7.4| |billion|and|a|funding|ratio|of|111%.| |The|key|financial|assumptions|used|in|the|2023|valuation|are|described|below.| |Assumption|th baad|elas|||a|2k|8|Tb|oS|aaeS|Sea)| ||onice|Inflation|-|Consumer|Prices|Index|(CPI)|3.0%|p.a.(based|on|a|long-term|average|expectedeeelevel Wereof CPI,Inder|broadlyeas|Yt Bereaconsistent)ee|~|| |with|long-term|market|expectations).| |ever gap|1.0%|p.a. to 2030, reducing|to 0.1%|p.a. fram 2030||| ||| || Discount|Rate|Fixed|interest|gilt|yield|curve|plus:||| |||Pre-retirement:|2.5%|p.a.| |||Post-retirement:|0.9%|p.a.| |—(all|subject increasesto|floor|of|0%)|BenefitsBenefits withsubject no cap:to|a|CPI‘soft assumptioncap'|of|5%|(providingplus 3bps|inflationary|increases|up|to|5%||| |and|half|of any|excess|inflation|over 5%|up|to|a|maximum|of|10%):|CPI||| |assumption|minus|3bps||| |The|main|demographic|assumptions|used|relate|to|the|mortality|assumptions.|These|assumptions|are|based|on|analysis|of|the|scheme’s|experience| |carried|out|as|part|of|the|2020|actuarial|valuation.|The|mortality|assumptions|used|in|these|figures|are|as|follows:| ||Mortality basetable|101%|of|S2PMA|“light”|for|males and 95%|of S3PFA|forfemales| || euture|improvements|to mortality| |CMI|2021|with|a|smoothing|parameter|of|7.5,|an|initial|addition|of|0.4%|p.a.|and| ||the|a long-term improvement rate of 1.8% pa for males and 1.6% pa for females||| |current|life|expectancies|on|retirement|at|age|65|are:||| |2025|2024||| |:|Males|Currently|aged|65|(years)|23.8|23.7||| |.|Females|currently|ages|65|(years)|25.5|25.4||| |‘|Males|currently|aged|45|(years)|25.7|25.6||| |.|Females|currently aged 45|(years)|27.2|27.2|||

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University of Oxford Staff Pension Scheme

The University of Oxford Staff Pension Scheme (OSPS) is a multi-employer hybrid scheme set up under trust and sponsored by the University. It is the pension scheme for support staff at the University, participating colleges and other related employers. New members joining the scheme build up benefits on a defined contribution basis. Members who joined before 1st October 2017 build up benefits on a career average revalued earnings basis.

The latest full actuarial valuation for the OSPS scheme was completed as at 31 March 2022. The funding position of this scheme has improved significantly moving from deficit of £113m to a surplus of £47m at the valuation date. As a result, the recovery plan agreed at the last valuation is no longer required and the deficit contribution ended on 30th September 2023. A provision of £36k was made at 31 July 2023 to account for deficit recovery payments up to 30th September 2023. A provision of £36k was made at 31 July 2023 (2022:£925k) to account for deficit recovery payments up to 30 September 2023. That remaining liability was released to the income and expenditure account in 2024.

The Trustee and the University have agreed a new contribution schedule which took effect from 1 October 2023 and takes account of the benefit improvements and changes to member contributions since the last valuation date. It was agreed that the scheme will meet its own running costs from the scheme's assets, including expenses relating to both the DB and DC Sections and the cost of pension Protection Fund /other statutory levies.

The table below summarises the key actuarial assumptions. Further details of the assumptions are set out in the statement of funding principles dated

Merton College

Notes to the financial statements For the year ended 31 July 2025

eee 27 June 2023 and can be found at https://finance.admin.ox.ac.uk/osps-documents

Date of valuation:	31 March 2022
Value of liabilities:	£914m
Value of assets:	£961m
Funding surplus/ (deficit):	£47m
The principal assumptions used by the actuary were:
Rate of interest (periods up to retirement)		Gilts' +2.25%
Rate of interest (periods after retirement)		Gilts' +0.5%
‘hi	Break-even RPIcurve less0.5%papre-2030 and 1.0%papost- 2030
CPI	RPt inflation assumption 2030	less 1% pa pre-2030 and 0.1% pa post-
Pensionable salary increases		RPI +pa
Funding Ratios:
Technical provision basis:		105%
Buy-out' basis:		62%
Non-financial assumptions:
	Non-Pensioners: 105% of standard S3PxA		medium tables for
Post-retirement mortality - base table	both males and females
	Pensioners: 105% of standard S3PxA medium tables for both
	males and females
Post-retirement mortality - improvements	Non-Pensioners: 105% of standard S3PxA both malesand females		medium tables for
	Pensioners: 105% of standard S3PxA medium tables for both
	males and females
‘ co. Recommended employer'scontribution rate (as % of pensionable salaries):	16.5% DB formembersfrom 01/10/2023 10%/12%114%DCmembers in relation to4% - from01/10/2023		4%/6%/8% costplan
Effective date of next-valuation:		31 March 2025
Pension charge for theyear
The pension charge recorded by the College during the accounting period (excluding pension finance costs) was equal to the contributions payable after
allowance for the deficit recovery plan as follows:
Scheme	2025		2024
	£'000		£'000
Universities Superannuation Scheme
Continuation Charges	398		432
Pension provision change	7		(1,893)
University of Oxford Staff Pension Scheme
Continuation Charges	526		520
Pension provision change	=		(36)
Other schemes - contributions Total	1 935		13 (064)

23 TAXATION

The College is able to take advantage of the tax exemptions available to charities from taxation in respect of income and capital gains received to the extent that such income and gains are applied to exclusively charitable purposes. No liability to corporation tax arises in the College's subsidiary companies because the directors of these companies have indicated that they intend to make donations each year to the College equal to the taxable profits of the companies under the Gift Aid scheme. Accordingly no provision for taxation has been included in the financial statements.

Merton College

Notes to the financial statements

For the year ended 31 July 2025

24	RECONCILIATION OF NET INCOMING RESOURCES TO
	NET CASH FLOW FROM OPERATIONS	2025	2024
		Group	Group
		£'000	£'000
	Net income/(expenditure)	12,036	49,488
	Elimination of non-operating cash flows:
	Investment income	(8,478)	(8,495)
	(Gains)/losses in investments	(15,682)	(50,183)
	Endowment donations	(695)	(1,637)
	Depreciation	1,202	1,129
	(Surplus)/loss on sale of fixed assets	*	”
	Decrease/(Increase) in stack	28	98
	Decrease/(Increase) in debtors	(494)	46
	(Decrease)/Increase in creditors	418	828
	(Decrease)/Increase in provisions	-	fa
	(Decrease)/Increase in pension scheme liability	=	(1,888)
	Net cash provided by (used in) operating activities	(11,665)	(10,614)
25	ANALYSIS OF CASH AND CASH EQUIVALENTS
		2025	2024
		£'000	£'000
	Cash at bank and in hand	6,044	8,197
	Endowment assets cash	23,810	26,775
	Total cash and cash equivalents	29,854	34,972
26	FINANCIAL COMMITMENTS
	At 31 July the College had no annual commitments under non-cancellable operating leases.	2025	2024
		£'000	£'000

27 CAPITAL COMMITMENTS

The College had contracted commitments at 31 July for future capital projects totalling £475k (2024 - £2,025k).

Merton College

Notes to the financial statements For the year ended 31 July 2025

ane,

28 RELATED PARTY TRANSACTIONS

The College is part of the collegiate University of Oxford. Material interdependencies between the University and the College arise as a consequence of this relationship. For reporting purposes, the University and the other Colleges are not treated as related parties as defined in FRS 102 ("Related party disclosures").

Members of the Governing Body, who are the trustees ofthe College and related parties as defined by FRS 102, receive remuneration and facilities as	Members of the Governing Body, who are the trustees ofthe College and related parties as defined by FRS 102, receive remuneration and facilities as
employees of the College. Details ofthese payments and reimbursed expenses as trustees are disclosed separately in these financial statements.
The College has made equity housing loans to the following Fellows who are employees on the basis the capital sums repayable are linked to the value
of the property on which the loan is secured. These loans are repayable in full when the Fellow demits from office and are classified as property
investments in the balance sheet,
2025	2024
£'000	E'000
Mr J Gloag -	60
Dr P Thornton *	=
DrMWhitworth 155	155

During the year, the College entered into a contract to commission a painting at a cost of £10,000 from an artist who is a partner of a Trustee of the College. As at the 31 July 2025, £10,000 had been paid in respect of this transaction.

29 CONTINGENT LIABILITIES

There are no obligations arising from events occurring before the date of the balance sheet whose existence will be confirmed only by the occurrence of events not wholly within the College's control.

30 POST BALANCE SHEET EVENTS

There are no material events occurring after the date of the balance sheet where disclosure is deemed to contribute to a proper understanding of the financial position.

Merton College

‘

Notes to the financial statements For the year ended 31 July 2025

30	PRIOR YEAR COMPARATIVES
	Consolidated Statement of Financial Activities for the Year ended 31 July 2024
		Unrestricted Funds	Restricted Funds	Endowed Funds	2024 Total
		£'000	£'000	£'000	£'000
	INCOME AND ENDOWMENTS FROM:
	Charitable activities:
	Teaching, research and residential	7,013	8	-	7,021
	Other Trading Income	695	-	-	695
	Donations and legacies	598	2,710	1,637	4,945
	Investments				=
	Investment income	22	1,413	7,060	8,495
	Total return allocated to income	9,677	-	(9,677)	-
	Other income	4	“	a	4
	Total income	18,009	4,131	(980)	21,160
	EXPENDITURE ON:
	Charitable activities:
	Teaching, research and residential	16,001	1,783	274	18,058
	Generating funds:
	Fundraising Trading expenditure	562 553	ae .	- a	562 553
	Investment management costs	-	2	2,682	2,682
	Total Expenditure	17,116	1,783	2,956	21,855
	Net Income/(Expenditure) before gains	893	2,348	(3,936)	(695)
	Net gains/(losses) on investments	-	73	50,110	50,183
	NetIncome/ (Expenditure)	893	2,421	46,174	49,488
	Transfers between funds	137	(96)	(41)	-
	Net movement in funds for the year	1,030	2,325	46,133	49,488
	Fund balances brought forward	23,500	4,969	329,592	358,061
	Funds carried forward at 31 July	24,530	7,294	375,725	407,549
31	PRIOR YEAR COMPARATIVES
	Statement of Investment Total Return forthe year ended 31 July2024
	The Trustees have adopted a policy of total return accounting for the College general endowment investment returns				with effect from 1 August 2013.
	The investment return to be applied as income is calculated as 3.5% of the average closing value of the investments in each of the last five years.						The
	amount applied as income for spending is included within the income section of the		SOFA on the basis that this gives a clearer understanding of the
	financial position of the College. The preserved value of the invested endowment capital represents its open market value in 2002 together with all
	subsequent endowments valued at the date of the gift.
		General Endowment Unapplied			Restricted Endowments	Total Endowments
		Trust for	Total
		Investment £'000	Return £'000	Total £'000	Total £'000	£'000
	At the beginning of the year:
	Gift component of the permanent endowment	88,957	=	88,957	2	88,957
	Unapplied total return	=	210,283	210,283	-	210,283
	Restricted endowment funds	3	=	:	30,352	30,352
	Total Endowments	88,957	210,283	299,240	30,352	329,592
	Movements in the reporting period:
	Gift ofendowment funds	-	=	:	1,637	1,637
	Investment return: total investment income	-	7,060	7,060	m	7,060
	Investment return: realised and unrealised gains and losses	-	48,464	48,464	1,646	50,110
	Less: Investment management costs Other transfers Total	- as -	(2,682) a 52,842	(2,682) sé 52,842	(274) (41) 2,968	(2,956) (41) 55,810
	Unapplied total return allocated to income in the reporting period	=	(9,677)	(9,677)	-	(9,677)
	Expendable endowments transferred to income	-	=	*	=		ag
		-	(9,677)	(9,677)	-	(9,677)
	Net movements in reporting period	-	43,165	43,165	2,968	46,133
	At end ofthe reporting period:
	Gift component of the permanent endowment	88,957	-	88,957	i	88,957
	Unapplied total return	=	253,448	253,448	-	253,448
	Expendable endowment	=	=	=	33,320	33,320
	TotalEndowments	88,957	253,448	342,405	33,320	375,725

TABLE OF CONTENTS

MEMBERS OF THE GOVERNING BODY 1 August 2024 to 31 July 2025

COLLEGE SENIOR STAFF

COLLEGE ADVISERS

Investment Managers

Auditors

Bankers

Solicitors

Surveyors

Other

College address

Website

REPORT OF THE GOVERNING BODY

REFERENCE AND ADMINISTRATIVE INFORMATION

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing documents

Governing Body

Recruitment and training of members of the Governing Body

Remuneration of Members of the Governing Body and Senior College Staff

Organisational management

Finance Committee

Academic Committee (Warden & Tutors’ Committee)

material changes to the range and focus of educational activities.

Development and Alumni Relations Committee

Remuneration Committee (‘Committee on Stipends and Allowances’)

Audit Committee

Other Committees

Group structure and relationships

OBJECTIVES AND ACTIVITIES

Charitable Objects and Aims

Activities of the College

Public benefit

ACHIEVEMENTS AND PERFORMANCE

Undergraduate students

Graduate students

Scholarships, bursaries, grants and prizes

Welfare and disability support

Schools Liaison and Access Activities

Library

groups.

Fellows

Chapel

Choral Foundation

Capital projects

Fundraising

FINANCIAL REVIEW

Reserves policy

Going concern

Risk management

Climate Change

Investment policy, objectives and performance

FUTURE PLANS

Admissions

Choral Foundation

Capital projects

Trading income

STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE GOVERNING BODY OF MERTON COLLEGE

Opinion

Basis for opinion

Conclusions relating to going concern

Other information

Matters on which we are required to report by exception

Responsibilities of the Members of the Governing Body

Auditor’s responsibilities for the audit of the financial statements

Use of Our Report

STATEMENT OF ACCOUNTING POLICIES

1. Scope of the financial statements

2. Basis of accounting

3. Accounting judgments and estimation of uncertainty

4. Income recognition

a. Income from fees, office for student support and other charges for services

b. Income from donations, grants and legacies

c. Investment income

5. Expenditure

6. Tangible fixed assets

7. Depreciation

8. Heritage Assets

9. Investments