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2022-06-30-accounts

Annual Report & Accounts

Photo: Martin Bond

For the Financial Year 1[st] July 2021 to 30[th] June 2022

Contents

Foundation 3
The Governing Body 4
Council, Officers and Advisors 5
Report of the Council 6
COVID-19 6
Education 8
Religion 9
Learning 10
Research 10
School 11
Buildings 12
Development 13
Structure, Governance and Management 16
Corporate Governance 17
Statement of Internal Control 17
Risk Assessment 17
Financial Review 19
Scope and Accounting Policy 19
Income 19
Expenditure 21
Net Financial Performance 22
Capital Expenditure 22
Investments 22
Going Concern 23
Restricted Funds 23
Reserves 23
Statement of the Responsibilities of the Council and Governing Body 24
Independent Auditors’ Report to King’s College 25
Statement of Principal Accounting Policies 29
Statement of Comprehensive Income and Expenditure 39
Statement of Changes in Reserves 40
Consolidated and College Balance Sheets 41
Consolidated Cash Flow Statement 42
Notes to the Accounts 43

2 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Foundation

King’s College was founded in 1441 by King Henry VI as “The King’s College of Our Lady and Saint Nicholas, in Cambridge”. His aim, recorded in our founding documents, was to establish a community of poor scholar clerks within the University of Cambridge. Since then, the College has worked to fulfil its responsibilities as a place of education, religion, learning and research and to play its part in advancing the University.

As both society and the academic world have changed, so the means we need to adopt to achieve this end have

changed. We have endeavoured to maintain all that is valuable in our heritage and to grow and develop to meet new challenges. Those challenges have been especially acute during the past two years as we dealt with the COVID-19 pandemic.

In meeting those challenges, we have relied on the support and generosity of those who share our aspirations. Donors, starting with our Founder and continuing up to the present day, have enabled us to explore new ideas and find new ways to deliver our core purposes. The College remains deeply grateful to them.

The College also depends on its students, staff and Fellows. It is through selecting the most able applicants to study at the College, and by supporting them through their studies, that we maintain our academic health. Making that selection fairly and taking due account of the potential applicants show is very challenging, especially as the educational environment in the country changes. Nonetheless, it is crucial that we are successful in maintaining our academic standards. The Fellowship is responsible for the leadership for the College. The Provost and Fellows form the Governing Body and determine the College’s role as a self-governing academic institution. Fellows teach and provide pastoral support to students; conduct research; and manage the administration of the College. Finally, the College community as a whole relies on the expertise and commitment of our staff. They serve the College well and enable us to work and thrive as a community.

These accounts set out the progress of the College over the financial year from 1[st] July 2021 to 30[th] June 2022. It aims to set out the purposes and aspirations of the College as well as recording our financial results. Those finances enable us to protect and enhance our key purposes in education, religion, learning and research.

3 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

THE GOVERNING BODY

Provost

Professor Michael Proctor

Fellows

Dr Zoe Adams Dr Ronojoy Adhikari Dr Tess Adkins Dr Sebastian Ahnert Dr Mark Ainslie Dr David Al-Attar Professor Anna Alexandrova Professor John Arnold Dr Nick Atkins Professor Gareth Austin Professor William Baker (to 30.09.2021) Professor Michael Bate Dr Alice Blackhurst (to 30.09.2021) Dr Giulia Boitani (from 01.10.21) Professor Richard Bourke Dr Mirjana Bozic Dr Angela Breitenbach Professor Jude Browne Professor Nick Bullock Dr Katie Campbell Professor Matei Candea Dr Keith Carne (First Bursar) Professor Richard Causton Mr Nick Cavalla (to 01.01.2022) The Rev’d Dr Stephen Cherry (Dean) Dr Maurice Chiodo Dr Alexandra Clarà Saracho (from 01.10.2021) Professor Francesco Colucci Dr Sarah Crisp Dr Laura Davies Professor Anne Davis Professor Peter de Bolla Dr James Dolan Professor John Dunn Professor George Efstathiou Professor Bradley Epps Professor Aytek Erdil Dr Sebastian Eves-van den Akker Professor Khaled Fahmy Dr Elisa Faraglia Professor James Fawcett Professor Iain Fenlon Dr John Filling (to 01.01.2022) Dr Timothy Flack (Senior Tutor) Dr Freddy Foks Professor Robert Foley Professor Matthew Gandy Professor Chryssi Giannitsarou Lord Tony Giddens Professor Ingo Gildenhard Professor Christopher Gilligan

Professor Simon Goldhill Dr David Good Dr Caroline Goodson Professor Tim Griffin Professor Gillian Griffiths Professor Mark Gross Professor Henning Grosse RuseKhan Dr Aline Guillermet (to 30.09.2021) Professor Cesare Hall Professor Ross Harrison Dr Katie Haworth (from 01.10.2021) Ms Lorraine Headen Professor John Henderson Dr Felipe Hernandez Dr Kate Herrity Dr Ryan Heuser Dr Myfanwy Hill Dr David Hillman Dr Stephen Hugh-Jones Professor Dame Caroline Humphrey Professor Herbert Huppert Mr Reza Huseini (from 01.10.2021) Dr Alice Hutchings Mr Daniel Hyde Professor Martin Hyland Mr Philip Isaac (Domus Bursar) Dr Malar Jayanth (from 01.10.2021) Professor Mark Johnson Mr Peter Jones (Fellow Librarian to 30.09.2021 & Vice-Provost’s Deputy from 01.08.2021 to 31.12.2021) Dr Jerelle Joseph Professor Richard Jozsa (to 30.09.2021) Dr Aileen Kelly Professor Barry Keverne Dr Philip Knox Dr Patrycja Kozik (from 01.10.2021) Dr Joanne Kusiak Professor James Laidlaw Professor Richard Lambert Professor Charlie Loke Professor Sarah Lummis Professor Alan Macfarlane Dr Marwa Mahmoud (to 30.09.2021) Dr Cicely Marshall Professor Nicholas Marston (ViceProvost to 31.07.2021) Professor Jean-Michel Massing Dame Judith Mayhew Jonas Dr Naomi McGovern

Professor Dan McKenzie Dr Scott Melville (from 01.10.2021) Professor Cam Middleton Dr Jonah Miller Dr Fraz Mir Dr Perveez Mody Professor Geoff Moggridge Dr Kamiar Mohaddes Dr Ken Moody Dr Basim Musallam Dr Rory O’Bryen Dr Julienne Obadia Dr Rosanna Omitowoju Professor Robin Osborne (ViceProvost from 01.01.2022) Dr Tejas Parasher Professor John Perry Dr Adriana Pesci Professor Chris Prendergast (Fellow Librarian from 01.10.2021) Dr Surabhi Ranganathan Dr Ben Ravenhill Professor Robert Rowthorn Professor Paul Ryan Professor Hamid Sabourian Dr Mira Siegelberg (from 01.10.2021) Professor Jason Sharman Dr Mark Smith Dr Michael Sonenscher Dr Sharath Srinivasan Professor Gareth Stedman Jones Dr James Taylor Mr James Trevithick Professor Caroline van Eck Professor Bert Vaux Dr Jamie Vicary Dr Rob Wallach Professor Darin Weinberg Professor Godela Weiss-Sussex Dr Tom White Professor John Young Professor Nicolette Zeeman Dr Edward Zychowicz-Coghill (to 01.01.2022)

Members in statu pupillary

Ms Eve James (to 31.07.21) Mr Adam Motloch (to 31.12.21) Mr Alex Provost (to 31.07.21) Mr Nathan Roundy (to 30.11.21) Ms Brenna Salkin (from 01.10.22 to 31.12.21) Ms Michaela Kadlecova (from 01.01.22) Ms Maddie Kelly (from 01.01.22) Mr Tom Pugh (from 01.10.22) Mr Sergio Russo (from 01.01.22)

4 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

COUNCIL, OFFICERS AND ADVISORS

Address

King’s College King’s Parade Cambridge CB2 1ST

Registered Charity Number

1139422

Charity Trustees (Members of Council)

The Provost Dr Zoe Adams Dr Mark Ainslie (to 31.12.21) Dr Matei Candea Dr James Dolan Professor John Dunn Professor George Efstathiou (from 01.01.2022) Dr Tim Griffin Professor Gillian Griffiths Dr John Perry Dr Alexandra Clara Saracho (from 01.01.22) Professor Jason Sharman (to 31.12.21) Dr Sharath Srinivasan

Members in statu pupillari Ms Eve James (to 31.07.21) Mr Adam Motloch (to 31.12.21) Mr Alex Provost (to 31.07.21) Mr Nathan Roundy (to 30.11.21) Ms Brenna Salkin (from 01.10.22 to 31.12.21) Ms Michaela Kadlecova (from 01.01.22) Ms Maddie Kelly (from 01.01.22) Mr Tom Pugh (from 01.10.21) Mr Sergio Russo (from 01.01.22)

Senior Officers

Provost: Professor Michael Proctor Vice Provost: Professor Nicholas Marston (to 31.07.21) Vice Provost (Deputy): Mr Peter Jones from 01.08.2021 to 31.12.2021) Vice Provost: Professor Robin Osborne (from 01.01.22) Senior Tutor: Dr Tim Flack Dean of Chapel: Rev’d Dr Stephen Cherry Director of Development: Ms Lorraine Headen First Bursar: Dr Keith Carne Domus Bursar: Mr Philip Isaac

President KCSU: Ms Eve James (to 30.09.21) President KCGS: Mr Nathan Roundy (to 31.12.21) President KCSU: Mr Tom Pugh (from 01.10.21) President KCGS: Mr Sergio Russo (from 01.01.22)

PRINCIPAL PROFESSIONAL ADVISORS

Actuaries

Cartwright Consulting Mill Pool House Mill Lane Godalming GU7 1EY

Auditors

Peters Elworthy & Moore Salisbury House Station Road Cambridge CB1 2LA

Solicitors Petersfield LLP 20 Station Road Cambridge CB1 2JD

Barr Ellison 39 Parkside Cambridge CB1 1PN

Property Managers and Valuers

Bidwells Trumpington Road Cambridge CB2 2LD

Savills Unex House 132-134 Hills Road Cambridge CB2 8PA

Investment Advisors/Managers Cazenove Capital 31 Gresham Street London EC2V 7QA

Bankers

Barclays Bank Plc 9-11 St Andrew’s Street Cambridge CB2 3AA

5 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Report of the Council

For both the College and the country, the year from 1st July 2021 to 30th June 2022 was marked by the recovery from the pandemic and the hopes of a return to normality. The disruption caused by the pandemic declined with fewer people being infected, at least in Great Britain. Within the College, that allowed us to return to in person teaching and more normal social interactions. It also led to a growing demand, as economies recovered, and that led to increased pressure on supply chains. That, in turn, caused inflation. The war in Ukraine led to a very rapid rise in fuel costs and inflation rose very markedly and remains high. So, although the disruptions caused by Covid-19 have largely ceased, new fears have arisen about the cost of living.

The pandemic had been very disruptive for the College and especially for our students. All of our normal operations needed to be adapted or replaced and many students found the enforced isolation very challenging. This year it has been possible to return to more normal patterns of teaching and examining. Moreover, the social events that bind the College community together have been possible once more. That has certainly helped but the scars of the pandemic remain and affect some of our students. The recovery has also led to greater pressure on staff. We had been able to keep our permanent staff employed throughout the pandemic but, with the recovery, some staff have left for other positions and it has been harder to recruit replacements. This has been particularly difficult in Housekeeping and Catering. The rising cost of living has also added to the pressure on staff. We have tried to address this by giving mid-year wage increases to the least well-paid staff and ensuring that all are above the Real Living Wage but the fears remain, especially with the expected fuel cost increases.

Although life has begun to return to normal, concerns remain and add to the pressure on students, staff and the College itself.

We did not believe that it would be possible, or prudent, to aim for a balanced budget for 2021-22 because of the exceptional circumstances and the value to us of maintaining our core operation. Instead, we set a budget that anticipated a gradual recovery of income and tried to keep expenditure as low as we reasonably could without causing lasting damage. The Governing Body therefore agreed a budget with a predicted deficit of £1.392 million. We were also very conscious that this budget was far less certain than it would be in normal times. The recovery has been mixed. The revenue from external catering recovered as quickly as we had hoped but the number of visitors and the income from them has not. Costs, especially for Tutorial supporting our students, were also higher than predicted. There was, however, one major and unexpected gain. After many years of not selling wine at auction, the Wine Steward sold some very valuable Burgundy that we had stored in the College cellars. That brought in £1.062 million. The net result was that we had a net deficit in our management accounts of £0.387 million, which is much better than predicted.

Plans for 2022-23

Unfortunately, the slower recovery, especially in visitor income, has again meant that we will set a deficit budget, predicting a deficit of £1.211 million. This is in a context of

6 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

a 5-year recovery plan that aims to break even in 2023-24 and then generate modest surpluses to repair past losses. The Governing Body acknowledged that this plan will not be easy to achieve because of the many external pressures but appreciates its importance and aims to meet it.

Within the College, Departments have managed well and responsibly, often in difficult circumstances. What we have not been able to control is the external pressures. The Government has frozen student fees leading to a decline in their real value. It also increased National Insurance costs for both employers and employees, although that is due to be reversed. Inflation will materially increase our costs with food costs, in particular, rising worryingly.

There is a particular concern over future energy costs. We are part of a consortium with other Colleges to purchase gas, electricity and water. We had made advanced purchases of energy that will protect us from the current increases for most of 202223. We are, however, very concerned about what will happen after that. All of our newer buildings are very energy efficient but the historic fabric will need a great deal of work to improve its efficiency. We have made strides in this direction with improved boilers and the refurbishment of the Keynes Building. Next year we plan to improve Spalding Hostel similarly. In the longer term, we will need to replace gas boilers with ground source heat pumps and to generate as much electricity as we can. Planning for this is underway but will take some considerable time and money. Photovoltaic panels were put on the Hall roof when that was replaced and we are trying to add generating capacity whenever we renovate buildings.

7 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Education

The College provides, within the University of Cambridge, an education for around 750 undergraduate and graduate students that is recognised internationally as being of the highest standard. This education develops students academically and more broadly prepares them to play full and effective roles in society. The College aims to attract as undergraduate and graduate students such persons as are best fitted to take academic advantage from the education it offers, regardless of gender, sexual orientation or educational, social, ethnic, or personal background. It devotes a major part of its resources, both financial and personal, to the task of selecting students from the widest range of backgrounds as it can, and supporting them through their studies. All decisions as to membership of the College are made by the College.

The education of junior members reading for undergraduate degrees is overseen by the Senior Tutor. The academic studies of each undergraduate member of the College are overseen by a Director of Studies and Tutor. Directors of Studies are responsible for organising supervisions and other classes for each undergraduate reading for the specific Tripos examinations for which they are severally responsible. College teaching is designed to complement the lectures and other classes provided by the University. To supervise undergraduate students the College employs persons fitted by their learning to do so; these are normally Fellows of the College, Fellows of other Cambridge colleges, and those holding post-doctoral positions or reading for a graduate degree within the University. The Fellows of the College responsible for teaching junior members either hold University teaching and/or research posts or have been appointed to Fellowships on the basis of their distinction as teachers and/or researchers. The College appoints Tutors to oversee the educational progress and the general well-being of all undergraduate students studying the subjects for which they are severally responsible, and to represent their pupils, where necessary, in formal dealings with the University. In their care for the general welfare of the junior members of the College, the Tutors enjoy the assistance of the Lay Dean and the Chaplain, as well as other support services provided by the College Nurse, the Cognitive Behavioural Therapist and Mental Health Advisor.

The education of junior members reading for graduate degrees is chiefly the responsibility of Faculties and Departments, who appoint academic supervisors. The College receives reports from the academic supervisors and provides such academic and other support as the Senior Tutor and the Graduate Tutors consider appropriate. All graduate students enjoy the support of a Graduate Tutor, who as well as being there to provide pastoral support, also facilitates a rich academic and social environment through organising seminars and social events.

In terms of College governance, the Senior Tutor reports regularly to the Education Committee, the College Council and to the Governing Body on the academic performance of junior members of the College, as well as all matters relating to the provision of education, and student support which enables our students to take full advantage of everything King's, and the University, has to offer.

8 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Most junior members of the College live in College accommodation. It is College policy that charges for accommodation should be comparable to those in other competitor universities. In order to facilitate access to undergraduate and graduate education regardless of financial circumstances, the College offers financial support on the basis of need. This is done through the Cambridge Bursary scheme and through our own hardship funds. In addition, research studentships, undergraduate scholarships, and prizes are awarded on the basis of academic excellence.

During academic year 2021/22 we saw a gradual return to normal in the wake of the pandemic and following the particularly difficult year in 2020/21. Students were able to mix freely, with minimal restrictions. They were also able to enjoy a range of social and other activities facilitated by the rejuvenation of King's and wider University societies. Formal Halls were re-established, albeit with reduced capacity. Teaching was carried out in person to a much greater extent than last year, although there were still limitations on group sizes in large-scale faculty lectures. College teaching was mostly carried out in-person. However, despite these improvements, there is no doubt that the impact of the pandemic will be felt for several years to come, and the need for a strong and supportive Tutorial system has never been greater. Nevertheless, there is great optimism that things are heading in the right direction and will continue to improve.

Religion

The College carries forward the tradition, continuous since its foundation, of being a place of spiritual and ethical reflection on the Christian faith and its implications for the individual and society. In particular, the College:

The Founder’s Statutes of 1443 require the College to provide for and conduct Divine Service in the College Chapel and to maintain a choir. The Choristers are members of the College and the College is responsible for their education and training. This tradition, established by Henry VI at the foundation of the College, has been continued ever since.

9 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Learning

The Library and Archives gradually resumed normal operations during 2021-22. Study space that had been reduced for social distancing has begun to be returned to prepandemic levels. The archives has been open this year and numbers are rebounding to pre-pandemic levels.

The College Library is a first port of call for junior members of the College as a repository of books and information, and its archives, rare books and manuscripts provide a major resource for scholarship, both for members of the College and for scholars from outside the College. The number of loans for the year totalled 10,752 from the total stock accessible via the online catalogue of 122,662 books. Catalogue records from the Library are uploaded to the iDiscover Catalogue of the University Library and it is possible to access the catalogue directly from the College website.

During the year, 185 readers (73 of them new) made 364 visits to the archives and rare books reading room, 1,874 items were retrieved for visitors and 2,057 enquiries answered by email or post. Visitors to in-person exhibitions numbered 226. The Archivist is now the College’s designated Freedom of Information Officer and the archivists responded to 48 enquiries within the framework of the Act; they also responded to 5 subject access requests under data protection legislation and drafted a data sharing agreement with King’s College School. From October the Archivist also took responsibility for granting permission to publish (on-line or on paper) material for which the College owns copyright; 14 such requests were made and granted. The archivists also oversee the College’s records management programme, which ensures that the College meets its statutory obligations and determines what information should be kept for the sake of future researchers, as well as for administrative requirements.

Research

The College provides an intellectual and social environment that fosters research at the highest level, and offers a fertile ground for interdisciplinary approaches. Each year, the College appoints a number of Research Fellows. In 2021/22 three stipendiary Research Fellows were elected; one, wholly funded by a donation to the College, to work on the history and cultures of the countries of the Silk Roads; one wholly funded by a donation to the College to work on the Economics of Inequality and one to work on Evolutionary Biology. A further non-stipendiary Research Fellowship was elected to work in the Physical Sciences and Technology.

The College also appoints as College Research Associates a number of post-doctoral researchers who have funding from other sources, with limited dining rights and a small research allowance, for two years (renewable). In 2020/21, the College appointed four College Research Associates in the Sciences together with three in the Arts. The College also renewed for a further two years two College Research Associates who had come to the end of their initial two-year term.

In addition, the College appoints non-stipendiary visiting Fellows nominated by Fellows and welcomes short-term visitors for academic research. Any Fellow may

10 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

apply for a small grant to support his or her research. The College runs international conferences, workshops and seminars annually, organised by Fellows of the College.

School

The College considers that the educational needs of the King’s College Chapel Choristers are best served by being educated in a co-educational school that offers a broad and rich curriculum and experience, included within the larger foundation. The Choristers are full boarders at the School in order that they may take part in the routine of services in the Chapel and so they may be selected from the widest geographical pool. The College believes that the demands of the choral tradition should be balanced with a high quality education and co-curricular programme, within a co-educational setting.

King’s College School provides an education for day pupils and boarders, aged 4 to 13. The excellence that describes the long-established choral tradition underpins how we approach all aspects of our provision. Working closely in support of the College’s values, including the commitment to excellence, creativity, cultural diversity and inclusivity, our pupils are indeed very fortunate to be able to enjoy wonderful facilities and a stimulating and enriching curriculum.

The new Learning Hub has now been fully operational for a year, overseen by the Director of Student Learning. The Cresco Division, offering further enrichment opportunities for all pupils, sits alongside the choral training programmes for boys [The Chapel Choristers] and girls [ Schola Cantorum ].

Girls’ boarding, first introduced in September 2020, continues to be very popular. Increasing numbers of boys and girls make use of the flexi boarding option.

Following the completion of the Sports and Cultural Centre in November 2018, we have been delighted to develop our outreach programme and pleased to welcome classes from a local primary school for their weekly PE lessons which are delivered as part of the remit of the Head of Sport Development.

Following the lifting of restrictions due to Covid-19, we are once again actively exploring possibilities for longer term partnerships with other schools in the local area and abroad, working in support of children’s development in music as well as in literacy, numeracy, sport and STEM subject programmes.

The academic year 2021/2022 saw the gradual lifting of Covid restrictions that had previously made so many of the School’s daily activities very challenging. It has been a reasonably straightforward year in terms of operations, examinations, school functions and inter-school fixtures

Throughout the summer we have once again been able to offer weekly holiday camps, some run by the school and some operated by an external organisation which hires our facilities. Over the Summer Holiday, work has been complete on the Platinum Jubilee Garden, a multipurpose outdoor space for whole school use at the centre of the school campus.

11 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

We have been delighted to celebrate the successes of so many of the Year 8 cohort in gaining entry to their senior schools, with 27 scholarship awards.

In addition to the Chorister Scholarships, and the awards for girls in the Schola Cantorum , the School offers a means-tested bursary for pupils applying from local primary schools at age 7. We continue to explore options for establishing a Bursary Fund, which we hope will ultimately be an investment of sufficient capital value to support more children in attending King’s College School.

Buildings

The work to replace Croft Gardens with new accommodation for both graduate students and couples has now completed, creating Stephen Taylor Court. This is a very attractive set of buildings that has attracted a lot of interest and appreciation. While there are still a few minor snags to resolve, the architect, contractor and the entire design team have worked well and co-operatively. The buildings are all Passivhaus so their energy consumption will be very slight. The entire project was supported in full by a very generous donation.

During 2022-23 we will be undertaking work on Spalding Hostel and the Chapel roof. Spalding is a mixture of buildings ranging from the Middle Ages to the 19th Century. We plan to improve the rooms and facilities, making the Hostel more coherent. We also plan to improve the energy efficiency. Unfortunately, we have not been able to eliminate the use of gas entirely but we expect the gas boilers to only be required on a few days each year. The lead on the Chapel roof needs to be recast in order to protect the boards beneath. As part of this process, we would like to install photovoltaic

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panels, which would generate a significant part of the electricity we use. At the moment, we await approval from Historic England for this work to be undertaken.

Development

o King’s College Twitter: 13,200 Followers (9% increase)

o King’s College Facebook: 15,542 Followers (8% increase)

o King’s College Instagram: 12,800 Followers (16.3% increase)

o King’s College Choir Twitter: 13,100 Followers (7.3% increase)

o King’s College Choir Facebook: 139,000 Followers (5.3% increase) o King’s College Choir Instagram: 26,900 Followers (37.9% increase)

To align with the Collegiate University’s Campaign, we take 2011/12 as the start of the silent phase of our fundraising campaign. We launched the public phase of the King’s Campaign on 1 December 2018 with a target of £100 million. From 1 July 2021 to 30 June 2022, we raised a total of £6,933,642 in new philanthropic gifts and received cash in of £20,443,984: which gives a campaign running total of £82,495,384.

The enormous commitment and generosity of our alumni and friends continues to make a very real difference to all aspects of the College. Despite the huge challenges caused by the pandemic over of the last financial year, new gifts and pledges of almost £7 million brought our running total of the King’s Campaign to £82.5 million. We owe a huge debt of gratitude to all of our donors for their continued investment in the future of this very special College.

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The new Passivhaus buildings at Croft Gardens have been completed ahead of the new Michaelmas Term 2023, creating 84 new homes for graduates, Fellows and their families, set in beautiful gardens with first-class facilities. This is an important moment. For the first time in the College’s history, we can offer accommodation to any King’s student who wishes to live in. The site has been named ‘Stephen Taylor Court’. The rental income from this new accommodation combined with that on Cranmer Road will generate significant funds annually towards our student support and access initiatives (SASI).

Entrepreneurship and innovation are areas that have inspired substantial donations. Established with a donation, the King’s Entrepreneurship Lab (the E-Lab) is the first of any College and was officially launched in September 2021. It places emphasis on developing sustainable and ethical projects with a positive social and environmental impact. Its aim is to provide new extracurricular opportunities to our students; to help them make the most of their ideas and inventions and offer early support towards potential commercialisation beyond completing their studies; and to teach and encourage entrepreneurial thinking which they can use in whatever career path they choose to follow.

The growth in the number of students attending the E-Lab activities in person and online has been extraordinary and resources were quickly stretched. We were therefore delighted to receive a generous gift from Lord David Sainsbury (KC 1959, Natural Sciences) and the Gatsby Charitable Foundation to help expand the activities of the E-Lab over the next ten years. A Research Fellowship has been created to explore the sociological, psychological and economic dimensions of entrepreneurship as a field of study, and the Entrepreneur-in-Residence scheme has been enhanced to offer students mentoring and informal business advice throughout the year. To complement this, a donor has established the Entrepreneur-in-Residence MPhil Studentship Programme.

King’s continues to be a popular choice for graduate students. The College received 550 postgraduate applications for College membership from September 2020 to March 2021, along with 53 applications from King’s members to continue their studies at postgraduate level. Consequently new donations of over £100k to support graduate students were put into immediate use. This year the Tutorial Office was able to fully or partly fund 90 studentships through King’s own funds. One of our top priorities is to try to secure permanently endowed funds for future generations of postgraduates, as many of the recent funds raised are short-term or expendable.

As part of the celebrations of 50 Years of Women at King’s starting in late September 2022, we commissioned portraits of Life Fellow Professor Dame Caroline (Carrie) Humphrey and Judith Weir (KC 1973, Music). The commissions have been made possible respectively thanks to a legacy gift and a donation by a Fellow Benefactor. We hosted an event in April with Carrie and the artist, Anne Rothenstein, where the painting was ‘unveiled’. The portrait of Judith will be completed in 2023.

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The Chapel has benefitted from a generous bequest from the estate of Maurice Burnett (KC 1941, History) who had great affection for both the College and the Chapel and made friendships here which endured throughout his life.

The Telephone Fundraising Campaign (TFC) was held in January and raised £138,000 to support students facing financial hardship, and to help expand the mental health resources we can offer. Most of these gifts are regular, long-term commitments that provide a steady quantifiable cash flow to the College of vital student support.

Announced on the anniversary of Alan Turing’s birth, a gift in support of a College Teaching Officer (CTO) in Computer Science has created the Enactor-Turing Fellow and CTO for 5 years and adds to The Alan Turing Programme at King's.

We were pleased to host in-person events again from June 2021 onwards, and as rules and restrictions eased, more alumni returned to the College. We hosted around 30 events in total over the year, including digital events, and had 2,250 guests attend. Digital and hybrid events will continue to feature in our events programme so that as many people as possible can attend.

After two years without travel, we were delighted to have the opportunity at the end of May to fly to the USA and Canada to meet alumni and friends in New York, Los Angeles, San Francisco, Minnesota, Ottawa and Nova Scotia. It was a pleasure to meet some people for the first time, to catch up with old friends and to thank in person those who have been so generous over the years in supporting the Campaign.

The Communications team continues to produce regular electronic newsletters for staff, students, and Fellows, and separately for alumni; the King’s Parade; Annual Report; Philanthropy Report; the King’s calendar and celebration cards, as well as dealing with press enquiries, writing and co-ordinating press stories and donor reports, updating the website and social media channels. A special issue of King’s Parade magazine was produced over the summer 2022 focusing on the 50th anniversary of the admission of women to the College in 1972. The team have supported a number of College-wide projects including the promotion of the updated Spurling Report on gendered experiences, and the management of the Undergraduate Summer Research Programme, now in its second year.

Our thanks as ever go to the Provost and Fellowship for their support; to the Archivists for producing fascinating exhibitions for events and special visitors, and to the staff for their work behind the scenes. Special thanks to Dr Keith Carne for his impeccable help, support and advice over the many years and we wish him a happy and productive retirement as he steps down as First Bursar in September 2022. Dr Tim Flack has been inspirational as Senior Tutor and we thank him for his support over the years as he hands over to Dr Myfanwy Hill in September 2022.

In recognition of outstanding philanthropy and support for the College, we are delighted to have elected two new Fellow Commoners. We thank them for their generosity. We also thank all those alumni and friends who have given their time,

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advice, support and help in so many ways; we had 73 volunteers this year. Special thanks go to the members of the Campaign Advisory Board; the Entrepreneurship Competition Judging Panel; the Senior Advisory Board of the Entrepreneurship Lab; and to those on the Investment Committee.

The College has registered with the Fundraising Regulator. No complaints about its fundraising activities were received.

Structure, Governance and Management

King’s College (formally “The King’s College of Our Lady and St Nicholas in Cambridge”) was founded in 1441 as one of the constituent colleges of Cambridge University. It endorses the University’s aims and endeavours to work with the University and other Colleges to further those aims. So, its principal aims are to support education, religion, learning and research. The College is a charitable corporate body established by Royal Charter with perpetual status and recognised under Common Law. It is also registered as a charity, number 1139422.

The College is governed in accordance with statutes, approved by Order of Her Majesty in Council. The statutes of the University of Cambridge and specific legislation covering the University of Cambridge apply to the College. The Visitor of the College is the Bishop of Lincoln.

The College is governed by the Provost and the Fellows of the College who, together with four resident members of the College in statu pupillari , constitute the College’s Governing Body. The Provost is responsible for 'general superintendence over the affairs of the College' and presides over congregations of the Governing Body. The administration of the College is devolved to the College Council, and reported to the Governing Body. There are also further committees provided for by statute and ordinance or established from time to time by the Governing Body or the Council.

Corporate Governance

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

  1. The College is a registered charity (registered number 1139422) and subject to regulation by the Charity Commission for England and Wales. The members of the Council are the charity trustees and are responsible for ensuring compliance with charity law.

  2. Council reports to the Governing Body, which consists of the Provost, the Fellows and four student members. The Council and the Governing Body are advised and supported by a number of committees: the Adornment Committee, Audit and Scrutiny Committee, Buildings and Safety Committee, Catering Committee, Chapel Committee, Charities Committee, Choirs Committee, Church Patronage Committee, Communications Committee, Concerts Committee, Development Committee, Disciplinary Committee, Education

16 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Committee, Fellows’ Remuneration Committee, Fellowship Committee, Finance Committee, Gardens Committee, Grievance Committee, Human Resources Committee, Investment Committee, IT Committee, Library Committee, Research Committee, Studentship Electors Committee, Sustainability Committee, Visitors’ Committee, Wine Committee.

  1. The Governing Body appoints the Finance Committee and the Audit and Scrutiny Committee. It is the duty of the Finance Committee to keep under review the effectiveness of the College’s internal systems of financial and other controls. The Finance Committee reports to Council, which proposes budgetary and financial controls to the Governing Body. The Governing Body appoints the Audit and Scrutiny Committee to act as internal auditors. It advises on the appointment of external auditors; considers reports from those auditors; monitors the implementation of recommendations; and make an annual report to the Council and the Governing Body.

  2. There is a Register of Interests of all members of the Governing Body. The College maintains a Conflicts of Interest Policy and systematically requires declarations of interest at all meetings of College committees.

Statement of Internal Control

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

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

  3. The system of internal control is designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. This process was in place for the year ended 30 June 2022 and up to the date of approval of the financial statements.

Risk Assessment

King’s College has a statutory duty to support education, religion, learning and research. In pursuit of this duty, it is prepared to accept risks. For example, the process of selecting students, and engaging in research will always entail risks but these are risks we must undertake. It also accepts that it needs to take investment risks in order to achieve the return required for its continuing operation. The College will attempt to minimise all risks that are not essential for its core purposes. In particular, it will attempt to minimise the overall risk of safety to members of the College and the public; of financial loss due to inappropriate financial controls; and of reputational damage.

17 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Each year the College’s Finance Committee and Council assess the risks the College faces and the steps that we can take to mitigate those risks. In the financial year 2021/22, as in 2020/21, our main concern has been the pandemic. We have worked with staff and students within the College to try to keep all safe and to support those in need. We have also worked with the University to operate in a safe and consistent manner and to ensure that all Colleges and Departments survive these challenges. Within the College, our greatest risk is balancing the immediate needs with our responsibilities to future generations. The Governing Body considers that the current, exceptional circumstances require us to spend more than our income for a brief period so that we protect the College and do not cause irremediable harm to our structure and purposes. Nonetheless we require a clear plan to restore our finances and sustain normal operation. We will still ensure that funds are spent appropriately and that we move rapidly back to a balanced budget where we can rebuild our endowment. We aim to do that while minimising the pain caused to our students and staff.

Because of the uncertainty surrounding the pandemic and how it will affect the College and the country, we have continued to model a variety of scenarios and considered how we would need to react to them. We have done that in conjunction with the University and other Colleges. We plan to continue to do this as a protection against the risks we face. Since the end of the Financial Year, the war in Ukraine has led to high inflation. This has been augmented by economic concerns over supply chains and the management of the country’s finances. These add to the risks which the College needs to consider and deal with.

Of particular concern to the College and its School are the risks to children and vulnerable adults. Our policies on safeguarding are designed to ensure that appropriate care is taken to protect them.

Council considers that it is exercising appropriate management of its activities and the associated risks.

18 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Financial Review Scope and Accounting Policy

The consolidated financial statements incorporate all of the activities of the College including those of the School, the trading activities of King's College Cambridge Enterprises Limited and KCS Facilities Limited, and the renovation and construction activities undertaken by King's College Cambridge Developments Limited. Together, these entities comprise the Group. References to the College in the Financial Review below refer to the results of the Group.

The accounts are prepared to show a true and fair view. The College brought in a new form of accounts in 2015/16 because of the adoption of Financial Reporting Standard 102. This change affected all Higher Education organisations including Cambridge Colleges. On page 39, the College Statement of Comprehensive Income and Expenditure (SOCIE) shows a surplus of £17,482k (£34,014k surplus in 2020/21). The SOCIE is a statement of all movements of the net assets of the College between one year and the next. Therefore, it reports all operating income and expenditure, investment gains and losses, and adjustments for pensions and other matters. The large surplus in the year is due to capital donations received in the year and the increase in the value of our operational buildings following a revaluation that was carried out at 30 June 2022. The boxed section on page 39 is, in effect, the operating result as reported for the year and it is this figure that the College seeks to control through its budget although the management accounts do not include the pension provision and unrestricted donations. The College reported a deficit of £1,814k for 2021/22 compared to a deficit of £1,890k for 2020/21. The deficit in 2021/22 includes a £1,400k increase in the USS pension provision that is partly offset by a £1 million one-off sale of investment wine stock. Excluding these items, the 2021/22 deficit is £1,412k and is due to the impact of the COVID-19 pandemic in the year. The accumulated deficits due to Covid in the last three years amounts to around £4 million and there is a budgeted deficit of £1.2 million for 2022/23. Five-year projections indicate that the College finances will move towards a breakeven position from 2023/24 on the assumption that conference and tourist income will return to prepandemic levels. The five-year strategic plan is regularly updated and the cost of living crisis is likely to put further pressure on the College finances.

Income

The College funds its activities from academic fees, charges for student residences and catering, the income from its conference and catering business, visitors, its invested endowments, and from donations and legacies. The future funding of universities remains uncertain with the Government yet to explain its intentions over research funding or student fees. Moreover, we remain concerned about the need to support applications from a wide variety of backgrounds and support for those who are admitted to study here. King’s College is proud of its ability to attract applicants and we provide good support, financial and pastoral, to those students. Nonetheless, this is an area that requires new and imaginative ways to ensure that we sustain the quality of our students and give them the opportunity to thrive. Already, a large proportion of

19 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

our expenditure is devoted to that end and this amount is likely to increase further as we explore more effective and appropriate ways to fulfil our aims. This is also an area where the College has received very generous donations and continues to do so, allowing us to be imaginative in exploring different approaches.

The great majority of our expenditure is to support education and research. The cost of education, for both undergraduates and graduates, exceeds the income we receive from fees. In common with other Colleges, we assess each year the full cost of education to compare this with the fee income. For the academic year 2021/22, the cost of undergraduate education for the College was £14,357 per student compared to average College fees of £4,625. The cost of a graduate education for the College was £11,964 per student compared to average fees of £4,500. In both cases, the costs falling to the University are excluded.

The College continues to try and increase income. Academic fee income was up overall by 8.7% due to a 41.2% increase in graduate fee income and a 2.9% increase in overseas undergraduate income that was partly offset by a 2% decrease from Undergraduate fee income. Home undergraduate numbers fell by 8 from 386 to 378 students and the privately funded and overseas undergraduate numbers decreased from 58 to 56. There was a significant increase in Graduate numbers that were up by 48 due to the improvement in the pandemic (from 169 to 217). In addition, the graduate fee and the fee for privately funded and overseas undergraduates increased 10% and 4% respectively. The fee for Home undergraduates was unchanged. Other Academic and Research Income increased 15.7% in 2021/22 due to an increase in the receipts from the University in respect of the Cambridge Bursary Scheme.

College Members’ Accommodation income was heavily impacted by the pandemic in 2020/21 but up 72.2% in 2021/22 as occupancy levels moved closer to pre-pandemic levels and we brought in 59 new student rooms from the Cranmer Road development. Third Party business practically ceased in 2020/21 due to Covid-19 and was up 278% to £173k in 2021/22. This however is still well short of the £450k-£500k pre-pandemic level of business. Third Party Catering was up from £16k in 2020/21 to £1,728k but this includes £1,061k from an investment wine auction sales during the year. Even if this is excluded, private dining levels did improve significantly in 2021/22 to £667k. This was still down on the £1.2m pre-pandemic levels and business could have been higher had there not been the problem of recruiting and holding permanent and casual catering staff. It is a nationwide issue that will continue to have a negative impact on our Third Party catering business in the near future. College Members’ Catering (including internal sales) was up 124% to £1,607k and this is only slightly down on pre-pandemic levels. Overall income from Residences, Catering and Conferences was up 155%, a £4,054k increase on 2020/21 that includes the investment wine stock sale.

Investment Income increased 2.5% in 2021/22. This included a 0.6% increase in the spending rule income that came about from an increased value of investments at 30 June 2021. The spending rule income is calculated at 3.35% of the average endowment value for the previous five years (30 June 2017, 30 June 2018, 30 June 2019, 30 June 2020 and 30 June 2021). Royalty income was up 91% (£176k) on 2020/21 due to large fees received in 2020/21 in respect of E.M. Forster rights for A Room with a View and Maurice . In 2013/14 the College borrowed £15 million for periods of 30 to 40 years

20 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

(see Note 18). This has been invested in the College Amalgamated Investment Fund and at 30 June 2022 the net assets, after interest payments, amount to £16.74 million (£17.39 million at 30 June 2021).

Tourist Admissions income rose by 590k (499%) in 2021/22 and the Visitor Centre sales were up £218k (402%). However, the impact of the Omicron covid variant lead to sales coming in below budget for the year and still only around 40-50% of prepandemic levels. Other Income for 2020/21 includes £64k from the HMRC’s Job Retention Scheme for staff furloughed (£744k in 2020/21). Chapel and Choir income including recording royalties was up 39% (£79k) in 2021/22. There was also a welcome return of Chapel concerts in Easter 2022 following a two year lay-off due to Covid.

Expenditure

The College tries to maintain the real value of its endowment and to this end, the Investment Committee is asked to assess the expected real rate of return on our investments so we know what is available to spend. Their current assessment is that we can spend 3.35% of the endowment. This is averaged over five years to reduce variation. This amounted to £6.16 million in 2021/22 (£6.12 million in 2020/21). Endowment income from the spending rule represents a significant part of our overall expenditure of £23.4 million. The Investment Committee will consider the spending rule again, in the light of growing concern about investment prospects.

In this year, costs as a whole increased by 22.7% but there was a £1.4 million USS pension provision in 2021/22. Adjusting for this, expenditure rose by 16.7% in the year. This is largely due to the increased activity following the pandemic. Staff costs increased by 16.6% in the year but after adjusting for the USS pension provision, staff costs rose by 5.0%. This can be broken down between a 7.5% increase in College wages and a 1.0% increase in School wages. These salary figures exclude the income from the Job Retention Scheme that was received for furloughed staff in the year. This totalled £64k for the College (£744k in 2020/21) and zero for the School (£93k in 2020/21). College operating expenditure (excluding the School) rose by 36.3% in the year compared to 2020/21 as operation levels increased.

Capital expenditure, particularly on buildings, varies dramatically from year to year. This makes it challenging to account for such expenditure and to plan it effectively. We try to do this by setting a depreciation charge in our annual accounts that reflects the average real amount we expect to spend. We also prepare a building plan for the next decade to guide our preparation and delivery of major projects. The total depreciation (excluding the School) was £3,493,606 for the year (£2,981,083 in 2020/21). The increase is due to the significant capital expenditure on new and recently refurbished accommodation last year. The College undertook a revaluation of all its operational buildings at 30 June 2022. This will impact the depreciation charge for the 2022/23 accounts and early indications is that it will fall by around £150k. This is still close to the expected average annual spend over the next decade. The depreciation charge should reflect the costs that we expect to face in renovating our existing buildings.

21 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Net Financial Performance

As in previous years, the College has continued to support its net spending on education (total education expenditure less College fee income) of £5,249,005 (£3,786,753 in 2020/21) with its investment income. In addition, the net cost of accommodation decreased in 2021/22 to £2,406,245 (£3,252,363 in 2019/20) as a student rents and external accommodation income increased following the pandemic. There was a net surplus on catering in 2021/22 of £315,681 (£1,484,021 deficit in 2020/21) due to higher sales and the £1,061k sale of investment wine stock.

The School recorded a surplus of £249,006 for 2021/22 (£98,154 in 2020/21). In addition, the College provided funds for choristership bursaries and bank interest of £401,567 (£388,740 in 2020/21) and the School paid £355,191 in rent back to the College (£339,840 in 2020/21). A total of £275,976 has been transferred to the funds designated for the School within the College reserves (£128,238 in 2020/21).

Capital Expenditure

During the year, capital expenditure including heritage assets was £20,383,010 (£19,096,733 in 2020/21). This includes £19,800,844 for maintenance projects, £130,037 for the School, £301,188 on the chapel including the start of the chapel roof project, £72,371 for catering, gardens and shop expenditure and £78,570 for IT. The College maintenance projects includes £219,319 and £350,400 towards the completion of the Cranmer Road and Wilkins Hall roof projects respectively, £481,117 towards the new Spalding refurbishment project, £13,280,004 towards the Croft Gardens new-build project and £4,849,743 towards the Keynes refurbishment. The School’s capital expenditure includes £61,709 on IT and equipment and £60,081 on fire panels and the Briggs lawn.

Investments

Last year the major stock markets rose sharply and our investments rose correspondingly, ending 19.3% higher. During 2021-22 markets fell back and Sterling declined against the dollar and other currencies. In addition, the College withdrew £7.3 million from the endowment over the year for building projects. Adjusting for this our investments fell 0.5% in the year. We remain fully invested across all of the major, international markets.

Most of our retail tenants are recovering after the trials of the pandemic. That has led to a modest increase in the valuation of these properties. It is pleasing that the support the College gave ensured that all of our independent retailers survived and continue to trade.

22 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Going Concern

The global health crisis caused by COVID-19 had a significant impact on all businesses and the recovery is not yet complete. In particular, the number of visitors to Cambridge and the College remains low and this has reduced our income significantly. There are, however, some signs of recovery. The economic difficulties caused by Brexit, the war in Ukraine, and financial concerns within the country have also increased inflation. This adds to the pressure both our students and staff face and requires further resources from the College.

The Trustees have prepared forecasts for the period to 2025 and have considered the impact upon the College and its cash resources and unrestricted reserves. The College has reviewed its cost base in order to combat the reduction in revenues and to extend financial headroom. The College also has significant investments which could be realised if required.

Based upon their review the Trustees believe that the College will have sufficient resources to meet its liabilities as they fall due for the foreseeable future and therefore have continued to adopt the going concern basis in preparing the financial statements.

Restricted Funds

The spending rules of the permanent restricted funds are contained in each fund's terms as stipulated by the donor. The College aims to spend all income arising in such funds, if the rules permit, and to retain the capital. In 2021/22, all but £320,260 (£304,218 in 2020/21) of the income arising in permanent restricted funds was spent in the year.

The spending rules of the expendable restricted funds are contained in each fund's terms as stipulated by the donor. The College aims to spend all income arising in such funds, if the rules permit, and the College may spend capital from a fund providing it fully satisfies the wishes of the donor.

Reserves

Designated funds are not permitted under the new RCCA guidelines and therefore have been transferred to General reserves. Included within General reserves, the College has designated the ongoing reserves of the School as a separate fund to reflect the responsibility given to the School Governors by the College. In total the College has £259,546,000 in unrestricted reserves, of which £248,617,000 is represented by tangible fixed assets and heritage assets. This results in a free reserve position of £10,929,000.

Dr I Collister First Bursar on behalf of the Trustees 8[th] November, 2022

23 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Statement of the Responsibilities of the Council and Governing Body

The Council in conjunction with the Governing Body is responsible for preparing the Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards.

The College’s Statutes and the Statutes and Ordinances of the University of Cambridge require that financial statements are prepared for each financial year which give a true and fair view of the state of affairs of the College and of the surplus or deficit of the College for that period. In preparing those financial statements the Council in conjunction with the Governing Body is required to:

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

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

24 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Independent Auditors’ Report to the Council and Governing Body of King’s College

Opinion

We have audited the financial statements of King’s College (the ‘College) and its subsidiaries (the ‘Group’) for the year ended 30 June 2022 which comprise the Consolidated Statement of Comprehensive Income and Expenditure, the Consolidated Statement of Changes in Reserves, the Consolidated and College Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

25 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Other information

The Council and Governing Body are responsible for the other information. The other information comprises the information included in the Annual Report other than the financial statements and our auditors’ report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

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

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

Matters on which we are required to report by exception

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

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

Responsibilities of the Council and Governing Body

As explained more fully in the responsibilities of the Council and Governing Body statement set out on page 24, the Council and Governing Body are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Council and Governing Body determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

26 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

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

Auditors’ responsibilities for the audit of the financial statements

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

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

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

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

27 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

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

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

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

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

A further description of our responsibilities for the audit of the financial statements is ’ located on the Financial Reporting Council s website. This description forms part of our auditors’ report.

Use of our report

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

PETERS ELWORTHY & MOORE

Chartered Accountants and Statutory Auditors

Salisbury House Station Road Cambridge CB1 2LA Date: 8[th] November 2022

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

28 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Statement of Principal Accounting Policies

BASIS OF PREPARATION

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

The Statement of Comprehensive Income and Expenditure includes activity analysis in order to demonstrate that all fee income is spent for educational purposes. The analysis required by the SORP is set out in note 10.

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

GOING CONCERN

The global health crisis caused by COVID-19 had a significant impact on all businesses and the recovery is not yet complete. In particular, the number of visitors to Cambridge and the College remains low and this has reduced our income significantly. There are, however, some signs of recovery. The economic difficulties caused by Brexit, the war in Ukraine, and financial concerns within the Country have also increased inflation. This adds to the pressure both our students and staff face and requires further resources from the College.

The Trustees have prepared forecasts for the period to 2025 and have considered the impact upon the College and its cash resources and unrestricted reserves. The College has reviewed its cost base in order to combat the reduction in revenues and to extend financial headroom. The College also has significant investments which could be realised if required.

Based upon their review the Trustees believe that the College will have sufficient resources to meet its liabilities as they fall due for the foreseeable future and therefore have continued to adopt the going concern basis in preparing the financial statements.

BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention, modified in respect of the treatment of investments and operational property which are included at valuation.

BASIS OF CONSOLIDATION

The financial statements incorporate those of the College, which includes the School, and the College’s subsidiaries, King’s College Cambridge Developments Limited, King’s College Cambridge Enterprises Limited and KCS Facilities Limited.

29 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

The accounts do not include the activities of the King’s College Student Union and King’s College Graduate Society, on the basis that the College does not have control over the operations of these entities.

RECOGNITION OF INCOME AND INVESTMENT RETURN

Academic fees

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

Grant Income

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

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

Donations and endowments

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

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

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

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

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

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

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

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

Investment income and change in value of investment assets

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

30 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Total return

The College operates a total return policy with regard to its endowment assets (including property). Spendable income equivalent to 3.35% of the average endowment for the last five years is included as endowment income and investment management costs are charged against capital.

Other income

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

Cambridge Bursary Scheme

The Cambridge Bursary Scheme (CBS) administration has changed from 2016/17;

The College has shown the gross payment made to eligible students and a contribution from the University as Income under “Academic Fees and Charges.

The net payment of £154k is shown within the Statement of Comprehensive Income and Expenditure as follows:

Income (see note 1) £247k Expenditure £401k

Foreign currency translation

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

PENSION SCHEMES

The College pays contributions to four pension schemes which provide benefits to its members based on final pensionable salary and one defined contribution pension scheme. The assets of these schemes are held separately from those of the College.

Universities Superannuation Scheme

The College participates in Universities Superannuation Scheme. With effect from 1 October 2016, the scheme changed from a defined benefit only pension scheme to a hybrid pension scheme, providing defined benefits (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee-administered fund. Because of the

31 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

mutual nature of the scheme, the assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The College is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, the College therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the Statement of Comprehensive Income and Expenditure represents the contributions payable to the scheme. Since the College has entered into an agreement (the recovery plan) that determines how each employer within the scheme will fund the overall deficit, the College recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and therefore an expense is recognised through the Statement of Comprehensive Income and Expenditure.

Cambridge Colleges Federated Pension Scheme

The College also contributes to the Cambridge Colleges Federated Pension Scheme (“CCFPS”), which is a similar defined benefit pension scheme to the USS. However, unlike the USS, this scheme has surpluses and deficits directly attributable to individual colleges. Current service costs, assessed by the scheme actuary, are included as part of expenditure. The expected return on assets less the interest cost is shown as a net amount as part of other income or expenditure. Actuarial gains and losses are recognised immediately in the Statement of Comprehensive Income and Expenditure.

Actuarial valuations are obtained at least triennially and are updated at each balance sheet date for accounting purposes. The assets of the Scheme are measured at fair value, and liabilities are estimated on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond. The resulting net asset or liability is presented separately after total assets less current liabilities on the face of the balance sheet.

Teachers’ Pension Scheme

The College participates in the Teachers’ Pension Scheme which is a statutory, contributory, final-salary scheme. The College is unable to identify its share of the underlying assets and liabilities.

Church of England Funded Pensions Scheme

The College participates in the Church of England Funded Pensions Scheme for stipendiary clergy. This scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Employer and the other participating employers.

Each participating employer in the scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in section 28 of FRS 102. This means it is not possible to attribute the Scheme’s assets and liabilities to specific employers and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pension costs charged to the Statement of Comprehensive Income and Expenditure in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficit contributions.

32 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

NOW: Pensions

The College also operates a defined contribution scheme NOW: Pensions. This is a UK multiemployer pension fund and the pension charge represents the amounts payable by the College to the fund in respect of the year.

FIXED ASSETS

a. Land and buildings

College land and buildings used for operational purposes (to house College Members) are stated at depreciated replacement cost at the 30 June 2022 following a revaluation review carried out by professional valuers, Gerald Eve. Freehold buildings are depreciated on a straight line basis over their expected useful economic lives with a range for the different buildings (excluding the Chapel) between 45 years to 115 years. The Chapel is depreciated over 200 years. Freehold land is not shown separately and is not depreciated. Assets under construction are valued at cost, based on the value of architects’ certificates and other direct costs incurred. They are not depreciated until they are brought into use.

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

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

b. Maintenance of premises

The cost of major refurbishment is capitalised and depreciated over the expected useful economic life. The cost of routine maintenance under £10,000 is charged to the Statement of Comprehensive Income and Expenditure as it is incurred.

c. Plant, furniture, fittings and equipment

Plant, furniture, fittings and equipment are capitalised at cost. Depreciation is provided in equal annual instalments over the estimated useful lives of the assets, which are as follows:

Plant 20 years
Furniture and equipment 10 years
Computer equipment 5 years

d. Heritage assets

The College holds and conserves a number of collections, exhibits, artefacts and other assets of historical, artistic or scientific importance. Heritage assets acquired before 1st July 2006 have not been capitalised since reliable estimates of cost or value are not available on a costbenefit basis. Acquisitions since 1st July 2006 have been capitalised at cost or, in the case of donated assets, at expert valuation on receipt. Heritage assets are not depreciated since their long economic life and high residual value mean that any depreciation would not be material.

33 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

INVESTMENTS

a. Securities

Securities listed on a recognised stock exchange are shown at their market value, i.e. the middle market quotation ruling at the close of business on 30 June, translated for overseas investments into sterling at the rates of exchange ruling at that date. Unlisted securities are shown at the Governing Body’s estimate of fair value.

Investment income is included as and when dividends and interest become payable. Interest on bank deposits is included as earned. Interest purchased or sold as part of the price for investments is treated as capital rather than being brought into the statement of comprehensive income and expenditure.

b. Properties

The College takes advice from its agents each year on the value of its properties and carries out a full valuation periodically.

c. Other investments

Shared equity housing interests are stated at cost. Royalties are held at valuation and are valued periodically by independent valuers.

STOCKS

Stocks are stated at the lower of cost and net realisable value.

PROVISIONS

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

CONTINGENT LIABILITIES AND ASSETS

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

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

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

34 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

FINANCIAL INSTRUMENTS

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

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

FINANCIAL ASSETS

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

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

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

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

FINANCIAL LIABILITIES

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

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

35 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

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

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

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

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

EMPLOYMENT BENEFITS

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

RESERVES

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

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

TAXATION

The College is a registered charity (number 1139422) and also a charity within the meaning of Section 467 of the Corporation Tax Act 2010. Accordingly, the College is exempt from taxation in respect of income or capital gains received within the categories covered by Sections 478 to 488 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes.

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

36 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

CONTRIBUTION UNDER STATUTE G,II

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

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

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

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

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

Useful lives of property, plant and equipment – Property, plant and equipment represent a significant proportion of the College’s total assets. Therefore the estimated useful lives can have a significant impact on the depreciation charged and the College’s reported performance. Useful lives are determined at the time the asset is acquired and reviewed regularly for appropriateness. The lives are based on historical experiences with similar assets, professional advice and anticipation of future events. Details of the carrying values of property, plant and equipment are shown in note 12.

Recoverability of debtors – The provision for doubtful debts is based on the College’s estimate of the expected recoverability of those debts. The provision is based on the current situation of the customer, the age profile of the debt and the nature of the amount due.

Investment property – Properties are revalued to their fair value at the reporting date by either Bidwells or Savills. The valuation is based on the assumptions and judgements which are impacted by a variety of factors including market and other economic conditions.

Retirement benefit obligations – The cost of defined benefit pension plans are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long term nature of these plans, such estimates are subject to significant uncertainty. Further details are given in note 27.

37 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

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

As the College is contractually bound to make deficit recovery payments to USS, this is recognised as a liability on the balance sheet. The provision is currently based on the USS deficit recovery plan agreed after the 2020 actuarial valuation, which defines the deficit payment required as a percentage of future salaries until 2038. These contributions will be reassessed within each triennial valuation of the scheme. The provision is based on management’s estimate of expected future salary inflation, changes in staff numbers and the prevailing rate of discount. Further details are set out in note 27.

All other accounting judgements and estimates are detailed under the appropriate accounting policy.

38 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Statement of Comprehensive Income and Expenditure Year ended 30 June 2022

Note
Unrestricted
£000
Restricted
£000
Endowment
£000
INCOME
Academic fees and charges
1
3,305
248
-
Accommodation, catering and conferences
2
6,044
-
-
School
3
6,855
-
-
Investment income
4
401
212
4,529
Endowment return transferred
4
3,393
2,770
(6,163)
Other income
5
1,479
-
-
Total income before donations and
endowments
21,477
3,230
(1,634)
Donations
New endowments
Capital donations for assets
175
-
-
533
4,787
14,820
-
121
-
Total Income
21,652
23,370
(1,513)
EXPENDITURE
Education
6
5,497
3,308
-
Accommodation, catering and conferences
7
8,062
70
-
School
8
6,230
-
-
Other expenditure
Contribution under Statute G,II
9
3,586
91
1,123
-
774
-
Total expenditure
23,466
4,501
774
(Deficit)/surplus before other gains and
losses
(1,814)
18,869
(2,287)
Gain/(loss) on investments
(991)
(1,485)
(999)
Surplus/(deficit) for the year
(2,805)
17,384
(3,286)
Other comprehensive income
Unrealised surplus on revaluation of fixed
assets
Actuarial gain/(loss) in respect of pension
schemes
5,374
815
-
-
-
-
Total comprehensive income for year
3,384
17,384
(3,286)
The notes on pages 43 to 64 form part of these accounts.		 Total
2022
£000
3,553
6,044
6,855
5,142
-
1,479
23,073
708
4,908
14,820
43,509
8,805
8,132
6,230
5,483
91
28,741
14,768
(3,475)
11,293
5,374
815
17,482		 Unrestricted
£000
3,049
2,460
6,009
242
3,507
1,182
16,449
179
-
-
16,628
3,991
7,127
5,921
1,378
101
18,518
(1,890)

39 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Statement of Changes in Reserves Year ended 30 June 2022

Unrestricted
£000
Balance at 1 July 2021
233,243
Surplus from income and expenditure
statement
(2,805)
Other comprehensive income
6,189
Transfer in year
3,870
Release of restricted capital funds spent in the
year
19,049
Balance at 30 June 2022
259,546
Unrestricted
£000
Balance at 1 July 2020
210,527
Surplus from income and expenditure
statement
7,999
Other comprehensive income
1,636
Transfer in year
-
Release of restricted capital funds spent in the
year
13,081
Balance at 30 June 2021
233,243		 Restricted
£000
Endowment
£000
63,838
107,964
17,384
(3,286)
-
-
(3,426)
(444)
(19,049)
-
58,747
104,234
Restricted
£000
Endowment
£000
64,573
95,931
12,297
12,082
-
-
49
(49)
(13,081)
-
63,838
107,964		 Total
£000
405,045
11,293
6,189
-
-
422,527
Total
£000
371,031
32,378
1,636
-
-
405,045

The notes on pages 43 to 64 form part of these accounts.

40 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Consolidated and College Balance Sheets As at 30 June 2022

Note
NON-CURRENT ASSETS
Tangible assets
12
Heritage assets
13
Investment assets
14
Total non-current assets
CURRENT ASSETS
Stocks - good for resale
Trade and other receivables
15
Cash and cash equivalents
16
Total current assets
CREDITORS: amounts falling due
within one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS: amounts falling due
after more than one year
18
Provisions
Pension provisions
19
TOTAL NET ASSETS
RESTRICTED RESERVES
Income and expenditure reserve –
endowment reserve
20
Income and expenditure reserve –
restricted reserve
21
UNRESTRICTED RESERVES
Income and expenditure reserve –
unrestricted reserve
Revaluation reserve
TOTAL RESERVES		 Group
2022
£000
247,136
1,481
187,757
436,374
3,720
3,251
7,780
14,751
(8,504)
6,247
442,621
(15,974)
(4,120)
422,527
104,234
58,747
162,981
254,172
5,374
259,546
422,527		 College
2022
£000
247,053
1,481
187,757
436,291
41
9,137
5,000
14,178
(7,846)
6,332
442,623
(15,974)
(4,120)
422,529

104,234
58,747
162,981
254,174
5,374
259,548
422,529		 Group
2021
£000
225,141
1,481
196,145
422,767
3,858
2,107
4,516
10,481
(6,531)
3,950
426,717
(18,179)
(3,493)
405,045
107,964
63,838
171,802
233,243
-
233,243
405,045		 College
2021
£000
225,044
1,481
196,145
422,670
33
7,491
3,021
10,545
(6,376)
4,169
426,839
(18,179)
(3,493)
405,167
107,964
63,838
171,802
233,365
-
233,365
405,167

Approved by Council on 8th November 2022 and signed on their behalf by:

Dr I Collister, First Bursar

The notes on pages 43 to 64 form part of these accounts.

41 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Consolidated Cash Flow Statement As at 30 June 2022

Surplus for the year
Adjustment for non-cash items
Depreciation
Non-cash donations or donated shares
Loss/(gain) on endowments, donations and investment
property
Pension scheme (credit)/debit
Decrease/(increase) in stocks
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Adjusting for investing or financing activities
Investment income
Interest payable
Profit on sale of non-current assets
Net cash flows from operating activities
Cash flows from investing activities
Investment income
Non-current investment disposal
Payments to acquire non-current fixed assets
Payments to acquire non-current heritage assets
Payments to acquire non-current investments
Net cash flows from investing activities
Cash flows from financing activities
Interest paid
Increase/(decrease) in cash and cash equivalents in the
year
Cash and cash equivalents at beginning of year
Increase/(decrease) in cash and cash equivalents in the year
Cash and cash equivalents at end of the year (note 16)		 2022
£000
11,293
3,893
(23)
3,475
1,444
137
(1,146)
(234)
(6,777)
666
-
12,728
4,410
8,006
(20,384)
-
(830)
(8,798)
(666)
(666)
3,264
4,516
3,264
7,780		 2021
£000
32,378
3,383
(1,309)
(29,878)
(233)
(139)
40
478
(6,612)
666
-
(1,226)
5,194
19,839
(19,098)
-
(9,285)
(3,350)
(666)
(666)
(5,242)
9,758
(5,242)
4,516

The notes on pages 43 to 64 form part of these accounts.

42 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022

1. ACADEMIC FEES AND CHARGES

College fees:
Fee income received at the Regulated Undergraduate rate
Fee income received at the Unregulated Undergraduate rate
Fee income received at the Graduate rate
Total fee income
Other academic income
Cambridge Bursary Scheme
Total		 2022
£000
1,746
559
971
3,276
30
247
3,553		 2021
£000
1,782
543
688
3,013
37
202
3,252

2. INCOME FROM ACCOMMODATION, CATERING AND CONFERENCES

INCOME FROM ACCOMMODATION, CATERING AND
CONFERENCES
Accommodation
College members
International programmes
Third parties
Catering
College members
International programmes
Third parties
Total
SCHOOL INCOME
Fees
HMRC Job Retention Scheme grant
Other income
Donations
Total		 2022
£000
3,161
-
173
982
-
1,728
6,044
2022
£000
6,670
-
185
-
6,855		 2021
£000
1,836
-
46
562
-
16
2,460
2021
£000
5,824
93
91
1
6,009

3. SCHOOL INCOME

43 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts

As at 30 June 2022

4. ENDOWMENT RETURN AND INVESTMENT INCOME

4a. Analysis of Investment Income
Income drawdown from endowment
(note 4b)
Other investment income
Cash balances and shared equity
properties
Royalties
(Losses)/gains on investment assets:
(Losses)/gains on total return
investment assets (below)
Gains on other investment assets
4b. Summary of Total Return
Income from:
Freehold land and buildings
Quoted securities and cash
Gains/(losses) on total return
investment assets:
Freehold land and buildings
Quoted securities and cash
Investment management costs in
respect of:
Freehold land and buildings
Quoted securities and cash
Total return for the year
Transfer to income and expenditure
reserve (note 4a)
Unapplied total return for year included
within Statement of Comprehensive
Income and Expenditure (see note 22)		 2022
£000
6,163
212
32
369
6,776
(3,564)
89
(3,475)
1,549
2,980
4,529
3,084
(6,648)
(3,564)
(366)
(408)
(774)
191
(6,163)
(5,972)		 2021
£000
6,124
246
49
193
6,612
28,235
1,643
29,878
1,415
2,656
4,071
1,178
27,057
28,235
(346)
(369)
(715)
31,591
(6,124)
25,467

44 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022 5. OTHER INCOME

Tourist admissions and shop sales
Chapel and choir
HMRC Job Retention Scheme grant
Other income
Total		 2022
£000
980
281
64
154
1,479		 2021
£000
172
202
744
64
1,182

6. EDUCATION EXPENDITURE

Teaching
Tutorial
Admissions - General
Admissions - Access and Widening Participation
Research
Scholarships and awards
Other educational facilities
Total		 2022
£000
3,062
765
492
1,057
1,318
1,538
573
8,805		 2021
£000
2,511
646
408
806
1,089
1,055
526
7,041

7. ACCOMMODATION, CATERING AND CONFERENCES EXPENDITURE

Accommodation
College members
Third parties
Catering
College members
Third parties
Total
SCHOOL EXPENDITURE
Staff costs
Other expenditure
Depreciation
Total		 2022
£000
4,580
1,158
1,520
874
8,132
2022
£000
4,530
1,301
399
6,230		 2021
£000
4,088
1,044
1,069
992
7,193
2021
£000
4,495
1,024
402
5,921

8. SCHOOL EXPENDITURE

45 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022 9. OTHER EXPENDITURE

Investment management costs
Loan interest
Tourist admission and shop expenditure
Chapel expenditure
Development
FRS 102 pension provision
Other expenditure
Total
Included within other costs is auditors’ remuneration as follows:
Fees payable to the College’s auditors for the audit of the College’s
annual accounts
Fees payable to the College’s auditors for the audit of the College’s subsidiaries
Total fees payable		 2022
£000
939
666
491
1,556
168
1,492
171
5,483
31
9
40		 2021
£000
832
666
404
1,029
128
(75)
155
3,139
31
9
40

10. ANALYSIS OF EXPENDITURE BY ACTIVITY

2021/22
Education
Accommodation, catering and conferences
School
Other
Contribution under Statute G,II
2020/21
Education
Accommodation, catering and conferences
School
Other
Contribution under Statute G,II		 Staff costs
£000
3,649
3,278
4,530
2,545
-
14,002
Staff costs
£000
3,343
3,221
4,495
947
-
12,006		 Other
operating
expenses
£000
4,338
2,363
1,301
2,753
91
10,846
Other
operating
expenses
£000
3,000
1,847
1,024
2,034
101
8,006		 Deprecia-
tion
£000
818
2,491
399
185
-
3,893
Deprecia-
tion
£000
698
2,125
402
158
-
3,383		 Total
£000
8,805
8,132
6,230
5,483
91
28,741
Total
£000
7,041
7,193
5,921
3,139
101
23,395

The above expenditure includes £501k as the cost of fundraising (2020/21: £413k).

46 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022 11. STAFF EXPENDITURE

Staff costs
Salaries and wages
National Insurance
Pension contributions (see note
27)
Average staff numbers
2021/22
2020/21		 College
fellows
£000
Non-
academic
£000
1,965
4,739
134
403
812
1,420
2,911
6,562
No. of
Fellows
FTE non-
academic
staff
88
179
98
172		 School
£000
3,500
346
683
4,529
FTE
school
staff.
94
98		 Total
2022
£000
10,204
883
2,915
14,002		 Total
2021
£000
9,814
841
1,351
12,006

At the balance sheet date there were 132 members of the Governing Body. During the year the average number receiving remuneration was the 88 shown above.

The number of officers or employees of the College, including Head of House and School, who received remuneration (including salary, employer’s national insurance contributions, employer’s pension contributions plus any taxable benefits either paid, payable or provided gross of any salary sacrifice arrangements) in the following ranges were:

£100,000-£109,999
£110,000-£119,999
£120,000-£129,999
£130,000-£139,999
£140,000-£149,999

During the year remuneration paid to key management
personnel in their capacity as College Fellows were:
Key management personnel aggregated remuneration		 2022
1
1
2
-
1
2022
£000
595		 2021
-
1
2
1
-
2021
£000
633

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the College. The aggregated remuneration paid to key management personnel consists of salary, employer’s national insurance contributions, employer’s pension contributions, plus any taxable benefits either paid, payable or provided, gross of any salary sacrifice arrangements. Key management personnel include the trustees, the Provost, the First Bursar, the Domus Bursar and the Senior Tutor.

47 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022

12. FIXED ASSETS

a) CONSOLIDATED

Buildings
108,863
19,536
-
(40,820)
-
25,952
113,531
9,453
1,916
(7,776)
-
3,593
109,938
99,098
10,840
109,938
Buildings
108,866
19,539
-
(40,820)
-
25,952
113,537
9,453
1,915
(7,776)
-
3,592
109,945		 Asset in
Course of
Construction
27,513
502
-
-
-
(25,952)
2,063
-
-
-
-
-
2,063
2,063
-
2,063
Asset in
Course of
Construction
27,513
502
-
-
-
(25,952)
2,063
-
-
-
-
-
2,063		 Plant
Furniture
and
equipment
44,626
237
-
8,046
-
52,909
13,587
1,918
(13,389)
-
2,116
50,793
50,377
416
50,793
Plant,
Furniture
and
equipment
44,405
230
-
8,046
-
-
52,681
13,466
1,898
(13,389)
-
1,975
50,706		 Computer
Equipment
Group
2022
£000
Group
2021
£000
1,931 249,818 230,720
109
20,384
19,098
(5)
(5)
-
- (15,791)
-
-
130
-
-
2,035 254,536 249,818
1,637
24,677
21,294
59
3,893
3,383
-
(21,165)
(5)
(5)
-
1,691
7,400
24,677
344 247,136 225,141
249 235,785 213,522
95
11,351
11,619
344 247,136 225,141
College
College
Computer
Equipment
2022
£000
2021
£000
1,852 249,521 230,428
107
20,378
19,093
(7)
(7)
-
-
(15,791)
-
-
-
130
-
-
1,952 254,231 249,521
1,558
24,477
21,114
58
-
3,871
(21,165)
3,363
(5)
(5)
-
1,611
7,178
24,477
341 247,053 225,044

48 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

As at 30 June 2022

Notes to the Accounts

12. FIXED ASSETS (continued)

Net book value is
represented by;
College
School
Total		 Freehold
Land
83,998
-
83,998		 Buildings
99,105
10,840
109,945		 Asset in
Course of
Construction
2,063
-
2,063		 Plant,
Furniture
and
equipment
50,290
416
50,706		 College
College
Computer
Equipment
2022
£000
2021
£000
246 235,702 213,425
95
11,351
11,619
341 247,053 225,044

c) The insured value of freehold land and buildings as at 30 June 2022 was £305 million (£305 million at 30 June 2021).

13. HERITAGE ASSETS

The College holds and conserves certain collections, artefacts and other assets of historical, artistic or scientific importance.

As stated in the statement of principal accounting policies, heritage assets acquired since 1 July 2006 have been capitalised. However, the majority of assets held in the College’s collections were acquired prior to this date. As reliable estimates of cost or valuation are not available for these on a cost-benefit basis, they have not been capitalised. As a result the total included in the balance sheet is partial.

Amounts for the current and previous five years were as follows :

Balance at beginning of year
Acquisitions purchased with
specific donations
Acquisitions purchased with
College funds
Total cost of acquisitions
purchased
Balance at end of year		 2022
£000
1,481
-
-
-
1,481		 2021
£000
1,481
-
-
-
1,481		 2020
£000
1,481
-
-
-
1,481		 2019
£000
1,466
-
15
15
1,481		 2018
£000
1,466
-
-
-
1,466		 2017
£000
1,466
-
-
-
1,466

49 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022 14. INVESTMENTS ASSETS

Balance at beginning of year
Additions
Disposals
Gain/(loss)
Transfer to operational buildings
Decrease in cash balances held
Balance at end of year
Represented by:
Quoted securities and unit trusts
Quoted securities – fixed interest
Freehold land and buildings
Investment in subsidiary undertakings
Unlisted securities
Cash with fund managers
College joint equity scheme
Literary royalties
Total
Subsidiary Undertakings
At 30 June 2022, Kings College held an
investment in the following companies:
King's College Cambridge Enterprises Ltd
KCS Facilities Ltd
King's College Cambridge Developments Ltd		 Group
2022
£000
196,145
4,316
(5,726)
(3,736)
(130)
(3,112)
187,757
142,398
843
32,364
-
8,342
541
2,055
1,214
187,757
Holding
Ordinary
Ordinary
Ordinary		 College
Group
College
2022
£000
2021
£000
2021
£000
196,145
174,092
174,092
4,316
20,640
20,640
(5,726)
(25,271)
(25,271)
(3,736)
27,345
27,345
(130)
(3,112)
(661)
(661)
187,757
196,145
196,145
142,398
148,538
148,538
843
32,364
-
8,342
1,906
31,507
-
6,203
1,906
31,507
-
6,203
541
4,398
4,398
2,055
2,379
2,379
1,214
1,214
1,214
187,757
196,145
196,145
Proportion
of voting
rights
Country of
Incorporation
Nature of
Business
100%
United
Kingdom
Provision of
conference
facilities
100%
United
Kingdom
Provision of
sports hall
facilities
100%
United
Kingdom
Provision of
development
facilities

15. TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES
Members of the College
Trade debtors
Amounts due from subsidiary companies
Other debtors		 Group
2022
£000
74
441
-
2,736
3,251		 College
2022
£000
74
341
7,256
1,466
9,137		 Group
2021
£000
53
269
-
1,785
2,107		 College
2021
£000
53
251
5,464
1,723
7,491

50 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022

16. CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS
Bank deposits
Current accounts
Cash in hand		 Group
2022
£000
75
7,701
4
7,780		 College
2022
£000
75
4,921
4
5,000		 Group
2021
£000
73
4,438
5
4,516		 College
2021
£000
73
2,943
5
3,021

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loan
Members of the College
Trade creditors
Accruals and deferred income
Social security, pension and taxes
University fees
Contribution to Colleges fund
Amounts due to subsidiary companies
Other creditors		 Group
2022
£000
205
140
515
2,850
251
1,795
91
-
2,657
8,504		 College
2022
£000
205
140
302
1,910
251
1,795
91
888
2,264
7,846		 Group
2021
£000
205
134
647
3,014
242
98
101
-
2,090
6,531		 College
2021
£000
205
134
587
1,963
242
98
101
965
2,081
6,376

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

YEAR
Project Tintagel loan
Interest-free loan from a donor
School bank loan		 Group
2022
£000
15,000
-
974
15,974		 College
2022
£000
15,000
-
974
15,974		 Group
2021
£000
15,000
2,000
1,179
18,179		 College
2021
£000
15,000
2,000
1,179
18,179

In 2014 the College borrowed from institutional investors (Project Tintagel loan), collectively with other Colleges. The College’s share was £15 million. The loans are unsecured and repayable during the period 2043-2053 and are at fixed interest rates of approximately 4.4%. Although issued through a funding vehicle, the College has no responsibility for the obligations of any other of the issuing Colleges.

In 2018 the College took out a bank loan of £2 million on behalf of the School to help fund the building of the Sports Centre. The loan is to be repaid over 10 years at a fixed interest rate of 2.99%. The balance falling due after more than one year at 30 June 2022 was £974,361.

51 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022

19. PENSION PROVISIONS

Balance at beginning of year
Movement in year:
Current service cost
Contributions paid by the College
Change in expected contribution
Finance cost
Actuarial gains recognised in statement of comprehensive
income and expenditure
Balance at end of year		 CCFPS
£000
(2,276)
-
39
-
(69)

817
(1,489)		 USS
£000
(1,217)
-
-
(1,403)
(11)
-
(2,631)		 Total
2022
£000
(3,493)
-
39
(1,403)
(80)
817
(4,120)		 Total
2021
£000
(5,363)
-
158
166
(91)
1,637
(3,493)

20. ENDOWMENTS

Restricted
Permanent
Endowments
Unrestricted
Permanent
Endowments
Group and College
2022
£000
2022
£000
Balance at beginning of year:
Capital
40,347
67,617
New donations and
endowments
121
-
Increase in market value of
investments
(1,325)
(2,082)
Transfer from General
Reserves
(444)
-
Balance at end of year
38,699
65,535
Analysis by type of purpose:
Student support
25,415
-
Fellowship
5,209
-
Chapel and choir
3,783
-
Other funds
4,292
-
General endowments
-
65,535
38,699
65,535		 Total
2022
£000
107,964
121
(3,407)
(444)
104,234
25,415
5,209
3,783
4,292
65,535
104,234		 Total
2021
£000
95,931
91
11,991
(49)
107,964
26,628
5,397
3,822
4,500
67,617
107,964

52 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022

20. ENDOWMENTS (continued)

Analysis by asset:
Property
Investments
Cash		 Restricted
Permanent
Endowments
Unrestricted
Permanent
Endowments
6,350
10,756
31,463
53,278
886
1,501
38,699
65,535		 Total
2022
£000
17,106
84,741
2,387
104,234		 Total
2021
£000
17,342
88,201
2,421
107,964

21. RESTRICTED RESERVES


Group and College
Balance at beginning of year
Comprising:
Capital
Unspent income
Balance at beginning of year
New grants
New donations
Endowment return transferred
Other income
Increase/(decrease) in market value
of investments
Expenditure
Capital grants utilised
Transfer
Balance at end of year
Comprising:
Capital
Unspent income
Balance at end of year		 Capital
grants
unspent
£000

4,579
-
4,579
4,579
14,820
-
-
-
-
-
(19,049)
-
350
-
350
350		 Permanent
unspent
and other
restricted
income
£000
Restricted
expendable
endowment
£000
10,226
49,033
-
49,033
10,226
-
10,226
49,033
-
441
1,466
212
(127)
-
4,787
1,303
247
(1,359)
(1,625)
-
(2,784)
-
(1,180)
(2,243)
9,413
48,984
-
9,413
48,984
-
9,413
48,984		 Total
2022
£000
63,838
49,033
14,805
63,838
14,820
5,228
2,769
459
(1,486)
(4,409)
(19,049)
(3,423)
58,747
48,984
9,763
58,747		 Total
2021
£000
64,573
42,566
22,007
64,573
5,011
3,103
2,616
448
5,230
(4,111)
(13,081)
49
63,838
49,033
14,805
63,838

53 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022

21. RESTRICTED RESERVES (continued)

Analysis of other restricted
funds/donations by type of
purpose:

Student support
Fellowship
Chapel and choir
Buildings
Other funds		 Capital
grants
unspent
£000

-
-
-
350
-
350		 Permanent
unspent
and other
restricted
income
£000
Restricted
expendable
endowment
£000
6,344
16,895
909
1,540
-
620
7,084
17,153
2,861
4,991
9,413
48,984		 Total
2022
£000
23,239
7,993
18,693
3,211
5,611
58,747		 Total
2020
£000
22,917
8,395
20,040
7,529
4,957
63,838

22. MEMORANDUM OF UNAPPLIED TOTAL RETURN

Memorandum of Unapplied Total Return
2022
£000
Within reserves the following amounts represent the Unapplied Total Return of the College:
Unapplied total return at the beginning of year
113,005
Unapplied total return for the year (note 4b)
(5,972)
Unapplied total return at end of year
107,033		 2021
£000
87,538
25,467
113,005

23. RECONCILIATION AND ANALYSIS OF NET DEBT

Cash and cash equivalents
Borrowings:
Amount falling due within one year:
Secured loans
Borrowings:
Amount falling due after more than
one year:
Secured loans
Total net debt		 At 30 June
2021
£000
Cash Flows
£000
4,516
3,264
(205)
-
(18,179)
2,205
(13,868)
5,469		 New
finance
leases
£000
Other non-
cash
changes
£000
-
-
-
-
-
-
-
-		 At 30 June
2022
£000
7,780
(205)
(15,974)
(8,399)

54 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022

24. FINANCIAL INSTRUMENTS

2022 2021
£000 £000
Financial assets at fair value through Statement of Comprehensive
income
Listed equity investments (note 14) 143,241 150,444
Other equity investments (note 14) 8,342 6,203
Financial assets that are debt instruments measured at amortised cost
Cash and cash equivalents (note 14 and 16) 8,321 8,914
Other equity investments (note 14) 2,055 2,379
Other debtors (note 15) - 1,255
Financial liabilities
Financial liabilities measured at amortised cost
Bank overdraft
Loans (note 17 and 18) 16,179 16,384
Trade creditors (note 17) 515 647
Other creditors (note 17) 4,931 4,662

25. CAPITAL COMMITMENTS

Authorised future capital expenditure amounted to £11,167,500 at 30 June 2022 including works on Croft Gardens, Spalding and the Chapel (£16,392,000 at 30 June 2021). In addition, the College has committed to invest a further £735,000 in Private Equity funds.

26. FINANCIAL COMMITMENTS

At 30 June 2022 and 2021 the College had no annual commitments under noncancellable operating leases.

27. PENSION SCHEMES

The College and its subsidiary undertakings participate in four defined benefit schemes and one defined contribution scheme.

The total pension cost for the year was as follows:

55 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022 27. PENSION SCHEMES (continued)

s to the Accounts
30 June 2022
PENSION SCHEMES (continued)
University Superannuation Scheme (includes FRS 102)
Cambridge Colleges’ Federated Pension Scheme (includes FRS 102)
Teachers’ Pension Scheme
Church of England Funded Pension Scheme
NOW: Pensions		 2022
£000
2,112
78
491
15
219
2,915		 2021
£000
565
77
487
19
203
1,351

University Superannuation Scheme (USS)

The total cost charged to the statement of comprehensive income and expenditure is £2,112k (2020/21 £565k).

The latest available complete actuarial valuation of the Retirement Income Builder is as at 31 March 2020 (the valuation date), and was carried out using the projected unit method.

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

The 2020 valuation was the sixth valuation for the scheme under the schemespecific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £66.5 billion and the value of the scheme’s technical provisions was £80.6 billion indicating a shortfall of £14.1 billion and a funding ratio of 83%.

The key financial assumptions used in the 2020 valuation are described below. More detail is set out in the Statement of Funding Principles (uss.co.uk/aboutus/valuation-and-funding/statement-of-funding-principles).

CPI assumption Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves less: 1.1% p.a. to 2030, reducing linearly by 0.1% p.a. to a long-term difference of 0.1% p.a. from 2040 Pension increases (subject to a floor of 0%) CPI assumption plus 0.05% Discount rate (forward rates) Fixed interest gilt yield curve plus: Pre-retirement: 2.75% p.a. Post retirement: 1.00% p.a.

The main demographic assumptions used relate to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2020 actuarial valuation. The mortality assumptions used in these figures are as follows:

56 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022 27. PENSION SCHEMES (continued)

Mortality base table 101% of S2PMA “light” for males and 95% of S3PFA for females Future improvements to mortality CMI 2019 with a smoothing parameter of 7.5, an initial addition of 0.5% p.a. and a long-term improvement rate of 1.8% pa for males and 1.6% pa for females

The current life expectancies on retirement at age 65 are:

2022 2021
Males currently aged 65 (years) 23.9 24.7
Females currently aged 65 (years) 25.5 26.1
Males currently aged 45 (years) 25.9 26.7
Females currently aged 45 (years) 27.3 27.9

A new deficit recovery plan was put in place as part of the 2020 valuation, which requires payment of 6.2% of salaries over the period 1 April 2022 until 31 March 2024, at which point the rate will increase to 6.3%. The 2022 deficit recovery liability reflects this plan. The liability figures have been produced using the following assumptions:

2022 2021
Discount rate 3.31% 0.87%
Pensionable salary growth 3.25% 2.7%

Cambridge Colleges Federation Pension Scheme (CCFPS)

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

The liabilities of the plan have been calculated, at 30 June 2022, for the purposes of FRS102 using a valuation system designed for the Management Committee, acting as Trustee of the Cambridge Colleges’ Federated Pension Scheme, but allowing for the different assumptions required under FRS102 and taking fully into consideration changes in the plan benefit structure and membership since that date.

The principal actuarial assumptions at the balance sheet date (expressed as weighted averages) were as follows:

2022 2021
% p.a. % p.a.
Discount rate 3.80 1.80
RPI assumption 3.45 3.40
CPI assumption 2.75 2.60

57 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022

27. PENSION SCHEMES (CCFPS continued)

For 1 year only, we have assumed that RPI will be 11% and CPI will be 9%. The caps under the Rules are applied to assumed pension increases.

The underlying mortality assumption is based upon the standard table known as S3PA on a year of birth usage with CMI_2021 future improvement factors and a long-term rate of future improvement of 1.25% p.a, a standard smoothing factor (7.0) and no allowance for additional improvements (2021: S3PA with CMI_2020 future improvement factors and a long-term future improvement rate of 1.25% p.a, a standard smoothing factor (7.0) and no allowance for additional improvements). This results in the following life expectancies:

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

Male Female
Deferred Members – Option 1 Benefits 63 62

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

The amounts recognised in the Balance Sheet as at 30 June 2022 (with comparative figures as at 30 June 2021) are as follows:

Present value of plan liabilities
Market value of plan assets
Net defined benefit asset/(liability)		 2022
£000
(13,302)
11,812
(1,490)		 2021
£000
(16,597)
14,320
(2,277)

The amounts to be recognised in Profit and Loss for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows.

Current service cost & ongoing expenses
Interest on net defined benefit (asset)/liability
Total		 2022
£000
28
41
69		 2021
£000
23
58
81

58 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022

27. PENSION SCHEMES (CCFPS continued)

Changes in the present value of the plan liabilities for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

Present value of plan liabilities at beginning of period
Current service cost (including Employee contributions)
Benefits paid
Interest on plan liabilities
Actuarial (gains)/losses
Present value of plan liabilities at end of period		 2022
£000
16,597
-
(529)
294
(3,060)
13,302		 2021
£000
17,960
-
(855)
254
(762)
16,597

Changes in the fair value of the plan assets for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

Market value of plan assets at beginning of period
Contributions paid by the College
Employee contributions
Benefits paid
Interest on plan assets
Return on assets, less interest included in Profit & Loss
Market value of plan assets at end of period
Actual return on plan assets (including interest)		 2022
£000
14,320
39
-
(561)
253
(2,239)
11,812
(1,986)		 2021
£000
13,969
158
-
(886)
196
883
14,320
1,079

The major categories of plan assets as a percentage of total plan assets for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

2021) are as follows:
2022 2021
Equities 52% 48%
Bonds & Cash 34% 42%
Property 14% 10%
Total 100% 100%

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

Analysis of the remeasurement of the net defined benefit liability recognised in Other Comprehensive Income (OCI) for the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

Actual return less expected return on plan assets
Experience gains and losses arising on plan liabilities
Changes in assumptions underlying
the present value of plan liabilities
Actuarial gain/(loss) recognised in OCI		 2022
£000
(2,239)
(861)
3,917
817		 2021
£000
883
427
327
1,637

59 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022

27. PENSION SCHEMES (CCFPS continued)

Movement in surplus/(deficit) during the year ending 30 June 2022 (with comparative figures for the year ending 30 June 2021) are as follows:

Surplus/(deficit) in plan at beginning of year
Recognised in Profit and Loss
Contributions paid by the College
Actuarial gain/(loss) recognised in OCI
Surplus/(deficit) in plan at the end of the year		 2022
£000
(2,277)
(69)
39
817
(1,490)		 2021
£000
(3,991)
(81)
158
1,637
(2,277)

Funding Policy

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

The last such valuation was as at 31 March 2020. This showed that the plan’s assets were insufficient to cover the liabilities on the funding basis. A Recovery Plan has been agreed with the College, which commits the College to paying contributions to fund the shortfall.

These deficit reduction contributions are incorporated into the plan’s Schedule of Contributions dated 21 May 2021 and are as follows:

These payments are subject to review following the next actuarial valuation, due as at 31 March 2023.

Teachers’ Pension Scheme

The College participates in the Teachers’ Pension Scheme. This is a statutory, contributory, final salary and career average, unfunded scheme and as such it is not possible to identify the College’s share of the underlying assets and liabilities of the scheme. The College contributes 23.68% of teachers’ gross salary for those in the scheme while employee contributions are tiered and as from April 2021 the range was 7.4% to 11.7%.

For schemes such as the Teachers’ Pension Scheme, FRS102 requires the College to account for pension costs on the basis of contributions actually payable to the scheme in the year. The total pension cost for the College was £491,000 (2019/20 £487,000).

60 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022

27. PENSION SCHEMES (continued)

Church of England Funded Pensions Scheme (CEFPS)

The College participates in the Church of England Funded Pensions Scheme for stipendiary clergy. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Employer and the other participating employers.

Each participating employer in the scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme’s assets and liabilities to specific employers and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the Statement of Comprehensive Income and Expenditure in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficit contributions (see below).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at 31 December 2018. The 2018 valuation revealed a deficit of £50m, based on assets of £1,818m and a funding target of £1,868m, assessed using the following assumptions:

Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the deficit repair contributions payable (as a percentage of pensionable stipends) are set out in the table below.

1 January 2018 to 1 January 2021 to
31 December 2020 31 December 2022
Deficit repair contributions 11.9% 7.1%

As at 31 December 2019, 31 December 2020 and 31 December 2021 the deficit recovery contributions under the recovery plan in force were as set out in the above table.

For senior office holders, the pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme’s rules.

61 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022

27. PENSION SCHEMES (CEFPS continued)

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the balance sheet liability over 2020 and over 2021 is set out in the table below.

Balance sheet liability at 1 January
Deficit contribution paid
Interest cost
Remaining change to the balance sheet liability*
Balance sheet liability at 31 December		 2021
£’000
2020
£’000
11
13
(3)
(5)
-
-
(6)
3
2
11

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:


payments:
2021 2020 2019
% p.a. % p.a. % p.a.
Discount rate 0.0 0.2 1.1
Price inflation n/a 3.1 2.8
Increase to total pensionable payroll -1.5 1.6 1.3

The legal structure of the scheme is such that if another Responsible Body fails, the College could become responsible for paying a share of that Responsible Body’s pension liabilities.

NOW: Pensions

The College operates a defined contribution pension scheme in respect of certain employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the College amounting to £219,000 (2020/21 £203,000).

28. CONTINGENT LIABILITIES

With effect from 16 March 2007, the Universities Superannuation Scheme (USS) positioned itself as a “last man standing” scheme so that in the event of an insolvency of any of the participating employers in USS, the amount of any pension funding shortfall (which cannot otherwise be recovered) in respect of that employer will be spread across the remaining participant employers.

29. RELATED PARTY TRANSACTIONS

Owing to the nature of the College’s operations and the composition of the College Council, it is inevitable that transactions will take place with organisations in which a College Council member may have an interest. All transactions involving

62 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022

29. RELATED PARTY TRANSACTIONS (continued)

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

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

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

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

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

2022 2021
From To Number Number
£0 £10,000 11 13
£10,001 £20,000 2 1
£20,001 £30,000 - 1
£30,001 £40,000 2 1
£40,001 £50,000 1 2
£50,001 £60,000 - -
£60,001 £70,000 - -
£70,001 £80,000 1 -
£80,001 £90,000 - -
£90,001 £100,000 1 -
£100,001 £110,000 - 1
£110,001 £120,000 1 -
Total 19 19

63 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022

Notes to the Accounts As at 30 June 2022

29. RELATED PARTY TRANSACTIONS (continued)

The total Trustee salaries were £263,085 for the year (2020/21 £300,099)

The trustees were also paid other taxable benefits (including associated employer National Insurance contributions and employer contributions to pensions) which totalled £58,747 for the year (2020/21 £71,428)

The College has a number of trading and dormant subsidiary undertakings which are consolidated into these accounts. All subsidiary undertakings are 100% owned by the College and are registered and operating in England and Wales.

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

64 Annual Accounts for the Financial Year 1 July 2021 to 30 June 2022