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← The King's College Of Our Lady And Saint Nicholas In Cambridge

2024-06-30-accounts

Annual Report

and

Financial Statements

for the year ended 30 June 2024

Registered Charity number 1139422

Contents

Page
Reference and administrative information 2
Trustees’ report 4
Overview 4
Activities and achievements 6
Financial review 9
Principal risks and uncertainties 12
Responsibilities of the College Council 13
Statement of internal control 13
Outlook 14
Independent Auditor’s Report to the Governing Body of King’s College 15
Statement of Principal Accounting Policies 19
Statement of Comprehensive Income and Expenditure 28
Statement of Changes in Reserves 29
Consolidated and College Balance Sheets 30
Consolidated Cash Flow Statement 31
Notes to the Financial Statements 32

1

Reference and administrative information

The formal title of the College is ‘The King’s College of Our Lady and Saint Nicholas in Cambridge’. The College’s address is King’s College, King’s Parade, Cambridge, CB2 1ST

Charity trustees

The trustees of the College, who are the members of the College Council, during the year were:

Professor Michael Proctor (Provost and Chair of Council, until October 2023); Dr Gillian Tett (Provost and Chair of Council, from October 2023); Ronojoy Adhikari; Matt Candea; John Dunn; Chryssi Giannitsarou; David Good; Jason Sharman; James Taylor; James Dolan (until October 2023); Lorraine Headen (from October 2023); Cesare Hall (until December 2023); Andjela Sarkovic (from January 2024); Gillian Griffiths (until January 2024); Angus Russell (from January 2024)

Members in Statu Pupillari , until the end of December 2023, were: Mr Dan Erwig; Mr Jakub GasienicaCiulacz; Ms Michaela Kadlecova; Ms Timi Olumide-Wahab. Members in Statu Pupillari , from January 2024, were: Mr Spencer Lee Boya; Ms Berenice Bulteel; Mx Teddy Graham; Mr Luca Limoncelli

Senior Officers

Provost Professor Michael Proctor (until October 2023) Dr Gillian Tett (from October 2023) Vice Provost Professor Robin Osborne First Bursar Dr Ivan Collister Senior Tutor Dr Myfanwy Hill

Principal advisers

Actuaries Cartwright Consulting, Mill Pool House, Mill Lane, Godalming, GU7 1EY Auditors Peters Elworthy & Moore, Sailsbury House, Station Road, Cambridge, CB1 2LA Bankers Barclays Bank plc, 9-11 St Andrew’s Street, Cambridge, CB2 3AA Investment advisers Mercer Limited, 1 Tower Place West, Tower Place, London, EC3R 5BU Property advisers Bidwells, Trumpington Road, Cambridge, CB2 2LD Savills, Unex House, 132-4 Hills Road, Cambridge, CB2 8PA Solicitors Barr Ellison, 39 Parkside, Cambridge, CB1 1PN Mills & Reeve, Botanic House, 98-100 Hills Road, Cambridge, CB2 1PH

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Membership of the Governing Body

The members of the Governing Body of the College, as at 1 October 2024, are set out below:

Provost: Dr Gillian Tett

Fellows (Senior Members of the Governing Body)

Dr Zoe Adams Dr Ronojoy Adhikari Dr Tess Adkins Dr Sebastian Ahnert Professor Anna Alexandrova Professor John Arnold Dr Nicholas Atkins Dr Seda Basihos Professor Mike Bate Dr Francesco Bianchini Dr Marcus Böick Dr Giulia Boitani Dr Shannon Bonke Professor Richard Bourke Dr Mirjana Bozic Professor Angela Breitenbach Professor Judith Browne Professor Nicholas Bullock Dr Katherine Campbell Professor Matei Candea Dr Keith Carne Professor Richard Causton Rev Dr Stephen Cherry Dr Alexandra Clarà Saracho Dr Ivan Collister Professor Francesco Colucci Dr Sarah Crisp Dr Laura Davies Professor Anne Davis Professor Peter de Bolla Dr James Dolan Professor John Dunn Dr Mark Dyble Professor George Efstathiou Professor Aytek Erdil Dr Sebastian Eves-Van den Akker Professor Elisa Faraglia Professor James Fawcett Professor Iain Fenlon Dr Timothy Flack Professor Robert Foley Professor Matthew Gandy Professor Chryssi Giannitsarou Professor Lord Anthony Giddens Professor Ingo Gildenhard Professor Christopher Gilligan CBE

Professor Simon Goldhill Dr David Good Professor Caroline Goodson Professor Gillian Griffiths Professor Mark Gross Professor Henning Grosse Ruse-Khan Professor Cesare Hall Professor Ross Harrison Dr Tiffany Harte Mr Apinan Hasthanasombat Dr Katie Haworth Mrs Lorraine Headen Professor John Henderson Dr Felipe Hernandez Dr Katherine Herrity Dr Ryan Heuser Dr Myfanwy Hill Dr David Hillman Dr Stephen Hugh-Jones Professor Dame Caroline Humphrey DBE Professor Herbert Huppert Dr Said Reza Huseini Professor Alice Hutchings Mr Daniel Hyde Professor Martin Hyland Ms Polly Ingham Professor Ian James Dr Malarvizhi Jayanth Professor Mark Johnson Mr Peter Jones Dr Dale Kedwards Dr Aileen Kelly Professor Barry Keverne Dr Philip Knox Dr Patrycja Kozik Dr Joanna Kusiak Professor James Laidlaw Professor Richard Lambert Dr Zhuangnan Li Professor Charlie Loke Professor Sarah Lummis Professor Alan Macfarlane Dr Cicely Marshall Professor Nicholas Marston Professor Jean Michel Massing

Dame Judith Mayhew Jonas Professor Dan McKenzie Professor Campbell Middleton Dr Jonah Miller Dr Fraz Mir Dr Perveez Mody Professor Geoffrey Moggridge Dr Kamiar Mohaddes Dr Gabriela Montejo-Kovacevich Dr Ken Moody Dr Basim Musallam Dr Rory O’Bryen Professor Rosanna Omitowoju Professor Robin Osborne Professor John Perry Professor Christopher Prendergast Professor Surabhi Ranganathan Dr Benjamin Ravenhill Professor Thomas Roulet Professor Robert Rowthorn Dr Angus Russell Professor Paul Ryan Professor Hamid Sabourian Dr Andjela Sarkovic Dr Georgia Seabra Nesseh Professor Jason Sharman Dr Mira Siegelberg Dr Michael Sonenscher Dr Sharath Srinivasan Professor Gareth Stedman Jones Dr James Taylor Professor Nicholas Tosca Mr James Trevithick Dr Marco Tripodi Dr Sophie Turenne Professor Caroline Van Eck Professor Bert Vaux Professor James Vicary Dr Rob Wallach Dr Dror Weil Professor Darin Weinberg Professor Godela Weiss-Sussex Dr Thomas White Professor John Young Professor Nicolette Zeeman

Members in Statu Pupillari (Junior Members of the Governing Body)

Mr Luca Limoncelli Mx Teddy Graham

Mr Spencer Lee Boya Ms Berenice Bulteel

3

Trustees’ report

Overview

King’s College, Cambridge is one of the thirty-one colleges within the University of Cambridge. It is an independent, self-governing community of scholars with its own property and income. The College was founded in 1441 by King Henry VI for ‘poor and needy scholar clerks, engaged in study within the University of Cambridge in the diocese of Ely, and bound to study and progress in the different departments of learning and skill’.

Aims and objectives

The College’s charitable objects are: (i) to maintain a College within the University of Cambridge dedicated to the advancement of education, religion, learning and research; and (ii) to provide for and conduct divine service within the College.

Public benefit

In setting about achieving its charitable objects, the College pursues several aims for the public benefit. These are to:

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The trustees have had due regard throughout the year to the Charity Commission’s guidance on public benefit and consider that the College again delivered its planned public benefits in 2023-24.

Governance

The governing documents of the College are its Statutes and Ordinances of 1441, as amended from time to time. The charity trustees are the College Council, which is responsible for the general administration and management of the College and for ensuring compliance with charity law. The members of the Council are the Provost and ten Fellows, elected by the College’s Governing Body for one-year terms. Council members may serve a maximum of four consecutive terms. The College Council meets on average five times per term, or more frequently as necessary.

The Governing Body of the College is the ultimate authority in the government of the College. It includes the Provost, all eligible Fellows and four students, at least one of whom is an undergraduate and one a post-graduate. Student representatives are elected by the College’s undergraduate and post-graduate students. They attend for the discussion of all matters directly affecting the interests of the College’s students. The Governing Body meets twice a term or more frequently as necessary. A register of interests is recorded for all members of the Governing Body. Unreserved minutes of the Governing Body and College Council are published on the College’s website.

The principal officers of the College are the Provost, who is responsible for general oversight of the College, the Vice Provost, who deputises for the Provost and looks after the interests of the Fellows, the First Bursar who has responsibility for the management of the College and its finances, and the Senior Tutor who has overall charge of education within the College. Additionally, the Domus Bursar is responsible for the College’s operations and estate, the Dean is charged with all activities within the College Chapel, the Director of Music is responsible for the College Choirs and music within the College, and the Director of Development oversees fundraising and alumni relations.

The Council and Governing Body are advised by several committees, each addressing a distinct area of College activity and whose members comprise Fellows and student members, elected annually. It is the duty of the Finance Committee to advise Council on the effectiveness of the College’s internal systems of financial controls and risk management. The Governing Body appoints an 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 makes an annual report to the Council and the Governing Body. Non-academic staff remuneration is determined by the College’s Human Resources Committee. Fellows’ remuneration, including that of College Officers, is decided by a Remuneration Committee, which is formed of four external and three internal members and is chaired by an external member. The College maintains a conflicts of interest policy and systematically requires declarations of interest at all committee meetings.

The Visitor of the College is the Bishop of Lincoln.

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Activities and achievements

Introduction

The challenge of recent years has been the dramatic and sustained period of disruption that affected societies globally. Under the immediate pressure of the pandemic, the College successfully balanced the protection of its core academic life with King’s long-term financial health. As conditions have stabilised, and gradually improved, the College has invested in its academic and educational life. The intention, over the next three to five years, is for King’s to emerge as a revitalised, secure and intellectually vibrant institution.

As part of this approach, 2023-24 saw the start of a series of changes that will, in time, strengthen our core mission and long-term resilience. Within the year, three areas attracted particular focus:

1. Academic strength

We believe that academic strength comes from outstanding teaching and the world-class research that supports it. Within the year, this involved a concerted effort to improve our teaching environment, led by College Fellows and supported by an expanded Tutorial team. King’s takes undergraduates in every Tripos subject, except Land Economy, Education and Veterinary Medicine, and collectively our Fellows provided several thousand hours of teaching. Supervision sizes were dictated by teaching need, rather than other factors, and were most frequently given to pairs of students.

King’s continued to develop its broad, intellectually rich environment for our undergraduate and postgraduate students. This included a strong year for our summer research programme, in which students were funded to remain in College over the summer vacation and to work with one of our Fellows on a 6-10 week research project. The Entrepreneurship-Lab also continued its active schedule, offering an expanded summer residential programme and a broad range of talks and other events throughout the year.

Alongside this, the College began what is hoped to be a series of more direct investments in supporting Fellows’ research. In the year, this focused on the appointment of several new Research Fellows and, importantly, a dedicated research coordinator. This role, analogous to strategic initiatives within the University, is intended as a first step in encouraging interdisciplinary exchange, helping develop potential research collaborations and supporting the workshops, seminars and other events that contribute to the academic and intellectual life of the College.

Alongside these priorities, we understand that outstanding academic work must be nurtured within a supportive and compassionate environment. A wide-ranging programme was started during the year to ensure we continue to offer the very best provision for our students and Fellows. Within this, a key priority for 2023-24 was to strengthen our pastoral care, working towards the establishment of a strengthened Healthcare Centre that will provide students with a range of health and wellbeing services. This began with the expansion of the role of College Nurse, who will play a central role in the Centre, working alongside our Welfare Tutor and wellbeing advisor, and complementing the more specialised healthcare provision offered by the University.

These activities were supported by the College’s outreach initiatives, which we continued to expand and develop during the year. Ongoing work included the College’s successful bridging programme (supporting incoming students) and mentoring and tutoring for students in the run-up to A-Level examinations. Our ‘small subjects’ residential was taken into a second year, encouraging students to apply to disciplines that traditionally attract a smaller number of applicants. Additionally, our residential programme, run in partnership with Christ’s College, was redesigned in 2024 to focus on language-based subjects. New initiatives in the year included a pilot of an advanced Maths residential which we will be expanding upon in 2025, and a further pilot of Calculating Women , an online course

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intended to encourage female students to apply to study Engineering, Maths or Computer Science. This pilot will be developed in 2025 into a full, in-person residential programme.

The College made a further, significant commitment by partnering with IntoUniversity to establish a learning centre in the Northeast (where we focus much of our access work). The centre, which will support students aged seven to eighteen, is part of a broader, evidence-based programme of support for promising students working towards a university education. This exciting approach is rooted in principles of community engagement, early intervention and sustained support. While wholly in keeping with the College’s progressive approach to outreach, King’s could not have participated in this venture without the generous support of benefactors.

2. Community environment

Our second area of focus was support for the College’s community, particularly in the face of historic levels of inflation and pressure on people’s cost of living. King’s is particularly proud of the warmth and friendliness shared amongst our students, Fellows and non-academic staff. In line with this, and as part of a commitment to support for the whole community, King’s provided a significant proportion of current students with financial assistance through scholarships, bursaries and other grants – many of which were made possible through generous donations to the College. As well as ongoing funding for student societies and social activities, subsidies for living costs were increased in the year to help all our students with pressures on their personal budgets.

Significant resources were also allocated to support our academic and non-academic staff through the period of high inflation. Rates of pay were increased significantly to reduce impacts on the cost of living. Funds were set aside for staff facing particular financial pressure and the College’s continued its programme of gradually enhancing benefits for academic and non-academic staff. For its lowerpaid staff, King’s continued its progressive approach to pay, providing these employees with a series of above-inflation increments and reducing the ratio between the highest and lowest paid across the College.

Alongside these changes, King’s made further investments in its facilities and built environment. A major focus was the completed refurbishment of Spalding Hostel, as well as renovation of the Gate House roof. Completion of the Chapel roof project, including the installation of solar panels (the first such scheme in the country) was a significant moment in the year attracting national media attention. The installation of Antony Gormley’s sculpture, True, for Alan Turing , realised, through generous funding from an alumnus, a project that has been in development for several years between the Gormley studio and King’s Fellowship. Looking ahead, work is beginning on efforts to renovate the Gibbs building, now entering its third century, and a vital location for the College’s teaching.

3. Telling our story

The third priority for the year was communications. We know that our academic strength depends on our ability to attract the very best students and scholars. That relates to the breadth of our intellectual life but, also, to the recognition of King’s as a place that is open to anyone curious about our ideas and community. In 2023-24, therefore, the College invested in an expanded and restructured communications function. This team is now leading work to support our admissions, through a revised website and digital communications, and to give greater profile to the research of the Fellowship. Working closely with the Provost, the team delivered a series of high-profile events during the year, attracting an impressive and diverse range of speakers to the College. This, we hope, is the start of a broader programme of intellectual engagement for students and Fellows, contributing to the collegiate University and to other audiences, nationally and internationally.

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Future plans

Plans for the coming year will be shaped by the same broad priorities. This will involve continued investment in education and research, progressive improvements in the community and daily life of King’s, and enhanced communication of the exciting academic and non-academic life of the College. In pursuing these objectives, the College remains on course to achieve breakeven in its management accounts in the next one to two years.

2024-25 will also involve considerable longer-term planning. Here, there are significant challenges to be worked through, including ambitions to decarbonise the College’s estate and investment portfolio.

Further information

King’s supported almost eight hundred full- and part-time students through the academic year. The total number of undergraduate and postgraduate students in residence and registered with the University were:

2019-20 2020-21 2021-22 2022-23 2023-24
Undergraduates 442 458 454 466 466
Postgraduates 278 294 320 326 333
Total 720 752 774 792 799

At 466, the undergraduate population remained slightly higher than the College’s target of 450. The composition of the undergraduate population was close to an even split between men and women (202: 184), part of a gradual trend in recent years. Higher postgraduate numbers reflect a larger intake of part-time students.

The College’s undergraduate finalists gave a strong performance in Tripos, with some 35% receiving a first-class degree and 86% gaining an upper second or better. Recent trends in Tripos examinations for King’s undergraduates in all years are set out below:

2020-21 2021-22 2022-23 2023-24
First 33% 25% 24% 24%
2:1 or higher 85% 78% 79% 78%

Looking ahead to 2024-25, King’s made offers to 159 students of which 77% were from UK schools and, of those, 80% from maintained or non-fee-paying schools. Trends in admissions statistics (reflecting ‘apply years’, rather than those when students are admitted) were as follows:

2019-20 2020-21 2021-22 2022-23 2023-24
Offers 176 162 155 156 159
UK schools 71% 76% 83% 81% 77%
State schools 79% 76% 78% 87% 80%

Underpinning the academic life of the College, King’s continued to support its large Fellowship. The College provided for 79 Official Fellows and 41 Life Fellows in the year. Seven Official Fellows were admitted during the year and three Research Fellows. King’s also admitted five Bye Fellows. The College also reappointed three College Research Associates and appointed a further six such Associates, each working on exciting projects, three in the Sciences and three in the Arts and Humanities.

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Financial review

Scope of the financial statements

The consolidated financial statements include the College and the College’s wholly owned subsidiaries, King’s College Cambridge Enterprises Limited and King’s College Cambridge Developments Limited. Together, these entities comprise the Group. References to the College in the Financial Review refer to the results of the Group.

The financial statements are produced by the College having regard to the Recommended Cambridge College Account (RCCA) format introduced through revisions to Statute G,III of the University which replaced the previous format introduced in 1926 by the University of Cambridge Commissioners.

Results overview

Income before donations and endowments

Income before donations and endowments grew 8.9% from £18.8m in 2023 to £20.45m in 2024. Growth was led by income from accommodation, catering and conferencing – and from other income, largely from visitors to the College. These showed a healthy return to levels comparable with those achieved before the COVID-19 pandemic.

Investment income received in the year fell 13%, largely due to a timing difference from when dividends and rents were received in 2024 compared to 2023. However, the College has a ‘spending rule’ that sets the maximum withdrawal from the endowment at 3.85% of the average year-end value of the endowment for the preceding five years. This is designed to reduce the effect on income of fluctuations in investment returns. The total investment income, net of fees, distributed to unrestricted and restricted funds including the spending rule was £7,417,000 in 2024, a 2.0% increase on 2023.

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----- Start of picture text -----
Accommodation, catering and conferences
Investment Income
Academic fees and charges
Other Income
£0.0 £1.0 £2.0 £3.0 £4.0 £5.0 £6.0 £7.0 £8.0 £9.0
Millions
2022-23 2023-24
----- End of picture text -----

Income from donations and endowments

King’s fundraising is focused on five areas: student support, including bursaries and scholarships; teaching and research; maintenance and development of the College estate; extracurricular activities; and a ‘future fund’ to support the College’s long-term development.

Total donations and endowments fell from £5.9m in 2023 to £4.14m in 2024. This was driven by a decline in capital donations for assets, with the College starting a campaign for the renovation of the Gibbs building during the year. New endowments and donations were comparable to last year. Total

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income from donations and endowments was below the College’s long-term run rate, in part reflecting several years of historically high donations in support of major capital works. The College’s participation rate is 12% of the non-resident members for whom it has contact details. Fundraising costs during the year amounted to £0.6m, implying a return of 7.0x.

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----- Start of picture text -----
Capital donations for assets
New endowments
Donations
£0.0 £0.5 £1.0 £1.5 £2.0 £2.5 £3.0 £3.5
Millions
2022-23 2023-24
----- End of picture text -----

King’s College is committed to best practice in relation to all fundraising activities, which are carried out by an in‐house Development team who are subject to the scrutiny of the Development Committee and College Council. The College did not engage any third parties to carry out fundraising activities on its behalf during the year. The College is registered with the Fundraising Regulator and has set up internal protocols and procedures to adhere to the Code of Fundraising Practice as a set of guiding principles to ensure fundraising is legal, open, honest, and respectful.

Expenditure

Total costs fell 5.8% in the year. Wage increases and additional staffing grew costs in education and in accommodation, catering and conferences. However, this growth was more than offset by a fall in other spending, driven significantly by a credit in pension provision for the Universities Superannuation Scheme.

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----- Start of picture text -----
Education
Accommodation, catering and conferences
Other Expenditure
£0.0 £2.0 £4.0 £6.0 £8.0 £10.0 £12.0
Millions
2022-23 2023-24
----- End of picture text -----

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The expenditure for each of the activities described above is made up of staff costs, other operating expenses, and depreciation as set out below.

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----- Start of picture text -----
Operating Expenditure
Staff costs
Depreciation
£0.0 £2.0 £4.0 £6.0 £8.0 £10.0 £12.0 £14.0
Millions
2022-23 2023-24
----- End of picture text -----

Staff costs fell 4.5% in the year as a result of changes in pension provision. Excluding these impacts, staffing costs rose 13.4% in the year largely driven by increases in pay (to support the cost of living), as well as a modest growth in headcount.

The College experienced a significant decline in operating expenditure, from £13.1m to £12.0m. Higher costs last year related to a one-off transfer involved in the creation of King’s College School as a distinct legal entity. The school had accrued funds, which the College held, and they were transferred to the School’s accounts as part of the legal separation. Operating expenditure in 2024 was nevertheless a significant increase on the £9.5m reported in 2022, driven substantially by ongoing higher energy costs.

Depreciation rose 3.1% in the year following the completion of the Spalding Hostel capital project. This was partly offset by other adjustments in the operational and investment property portfolios.

Capital expenditure

The College’s capital expenditure on tangible fixed assets was £7.6m in 2024, a fall from £10.2m in 2023. Expenditure in 2023-24 was driven by Spalding Hostel, the Chapel roof project and the Gatehouse. Other items of capital expenditure included the completion of the Croft Gardens project.

Balance sheet

Consolidated net assets were £454.3m for the Group, up £23.1m from 2023. This growth was driven mainly by a 6.5% increase in investment assets (see below). The College holds £15.6m debt at a rate of 4.4% repayable between 2043-2053. At 30 June 2024, borrowing stood at 3.4% of total assets less current liabilities. There was no new borrowing in the year.

Reserves

Unrestricted reserves grew by £4.0m to £264.6m. This included £247.4m of tangible fixed assets and heritage assets, implying ‘free reserves’ of £17.2m. Free reserves provide working capital to fund unexpected opportunities or to provide a degree of protection against unforeseen expenditure or unanticipated loss of income. The College’s free reserves in 2024 are a growth of £0.9m from 2023 and amount to approximately one year of unrestricted operational expenditure. The College targets

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free reserves of at least 6 months of unrestricted operational expenditure, as stipulated in its Financial Regulations.

Restricted reserves for 2024 were £189.8m, an increase of 11.2% (£19.2m) on 2023. This was driven by investment returns and new donations, offset by spending down of expendable funds.

Endowment and investment performance

The College has a pool of capital (known as the ‘Endowment’) invested for the long-term to support its charitable activities (see note 12).

The College aims to manage the total return from the Endowment so that the long-term capital value is preserved in real terms, such that the College itself can fulfil its charitable objects in perpetuity. The College targets a long-term total return of CPI + 3.85% gross of investment management fees. Within this, the College believes it has a responsibility for its investments. The Investment Committee monitors both the performance of the College’s investments and their environmental, social and governance aims. The College does not hold direct investments in the fossil fuels, arms, tobacco, or gambling industries.

The total value of the Endowment was £218.3m in 2024, up 6.5% from 2023 (£205.1m). Growth was driven by the securities portfolio with minimal growth in the property portfolio and other investments. These increases were offset by withdrawals of £8.8m to support the College’s capital expenditure and cash reserve. Notwithstanding capital markets volatility in recent years, the long-run performance of the Endowment is in line with the College’s return objective.

Principal risks and uncertainties

The major risks to which King’s is exposed are assessed by the Finance Committee reporting to Council, using the College’s Risk Register. The principal risks the College must address relate to its ability to maintain and develop its educational and research activity and, as part of that, to attract the best academic and non-academic staff, and to maintain and enhance its physical facilities.

Key financial uncertainties and risks, and the measures taken to manage them, are:

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accidents, and a long-term maintenance and refurbishment programme is in place with appropriate resourcing to preserve the condition of estate. Other operational risks with a financial impact, for example cyber-attack, are monitored through the College’s Risk Register with appropriate mitigations regularly reviewed.

The College monitors and manages risks more widely through the internal control processes outlined in the Statement of Internal Control below.

Responsibilities of the College Council

The Council is responsible for preparing the Annual Report and Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Statement of Recommended Practice: Accounting for Further and Higher Education .

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

The College has prepared a detailed budget covering the period to 30 June 2025 as well as a five-year forecast of expected demands on the College’s operating position and capital expenditure. Accordingly, the trustees believe the College’s financial resources are sufficient to ensure there are no material uncertainties around its ability to continue as a going concern for the foreseeable future, being at least 12 months from the date of approval of the financial statements, and have therefore prepared the financial statements on the going concern basis.

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

The Council 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.

Statement of Internal Control

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 Council is responsible, in accordance with the College’s Statutes. The system of internal

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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.

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 2023 and up to the date of approval of the financial statements.

The Council is responsible for reviewing the effectiveness of the system of internal control. The following processes have been established. The Council has sixteen regular meetings each year and, as part of the annual planning round, considers the major risks to which the College and its subsidiary undertakings are exposed and satisfies itself that systems or procedures are established to manage those risks.

Key controls used by the College include:

The College is improving these controls through various refinements, including financial reviews of key departments, and increased resourcing of central functions, including Finance, Legal and Governance, and Human Resources.

The Council’s oversight of internal controls is informed by the work of the committees and College Officers, including the College Audit and Scrutiny Committee, and by comments made by the external auditors in their management letter and other reports.

Outlook

King’s is fortunate in having significant operational and investment assets to support its charitable mission. This has allowed the College’s activities to continue to recover in a challenging environment. Longer term, however, the College must face into the wider issues affecting the UK higher education sector. These include the sustainability of world-class research, continued provision of outstanding teaching, support for students’ finances, provision for student mental health, and efforts to broaden access to higher education in the UK. In response, the College continues to refine its strategic priorities to strengthen itself and adapt to new challenges.

On behalf of College Council,

Gillian Tett Provost

Ivan Collister First Bursar

3 December 2024

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

We have audited the financial statements of King’s College (the ‘College’) and its subsidiaries (the ‘Group’) for the year ended 30 June 2024 which comprise the Consolidated Statement of Comprehensive Income and Expenditure, the Consolidated Statement of Changes in Reserves, the Consolidated and College Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The 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

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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.

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

16

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:

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

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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 noncompliance 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 and Moore Chartered Accountants and Statutory Auditors Salisbury House Station Road Cambridge CB1 2LA Date: 13 December 2024

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

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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 8.

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. The economic difficulties caused by 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 2028 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 and the College’s subsidiaries, King’s College Cambridge Developments Limited and King’s College Cambridge Enterprises Limited.

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.

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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 non-government 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.

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.

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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 £196k is shown within the Statement of Comprehensive Income and Expenditure as follows:

Income (see note 1) £299k
Expenditure £495k

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 three pension schemes which provide benefits to its members based on final pensionable salary and one defined contribution pension scheme, ‘NOW: Pensions’. 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 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

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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.

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.

NOW: Pensions

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

Fixed assets

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 2024 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.

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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.

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

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 1 July 2006 have not been capitalised since reliable estimates of cost or value are not available on a cost-benefit basis. Acquisitions since 1 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.

Investments

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.

Properties

The College has used external advisors to carry out desktop valuations of its investment properties and carries out a full valuation periodically.

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.

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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.

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

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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.

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 remeasured 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.

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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.

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:

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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 10.

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 25.

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

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Statement of Comprehensive Income and Expenditure

Year ended 30 June 2024

2024 2024 2024 2024 2023 2023 2023 2023
Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
Note
£000		 £000 £000 £000 £000 £000 £000 £000
INCOME
Academic fees and charges 1
3,536		 299 - 3,835 3,456 271 - 3,727
Accommodation, catering and conferences 2
7,738		 - - 7,738 6,796 - - 6,796
Investment income 3
642		 571 3,823 5,036 691 458 4,643 5,792
Endowment return transferred 3
3,064		 3,140 (6,204) - 3,312 2,811 (6,123) -
Other income 4
3,841		 - - 3,841 2,456 - - 2,456
Total income before donations and 18,821 4,010 (2,381) 20,450 16,711 3,540 (1,480) 18,771
endowments
Donations 444 408 - 852 818 837 - 1,655
New endowments - 3,182 22 3,204 - 2,149 127 2,276
Capital donations for assets - 82 - 82 - 1,932 - 1,932
Total Income 19,265 7,682 (2,359) 24,588 17,529 8,458 (1,353) 24,634
EXPENDITURE
Education 5
6,436		 3,673 - 10,109 5,942 3,878 - 9,820
Accommodation, catering and conferences 6
9,930		 238 - 10,168 9,198 88 - 9,286
Other expenditure 7
3,255		 1,159 742 5,156 4,014 1,300 912 6,226
Change in USS pension deficit recovery
provision contributions 17
(2,040)		 (2,040) (460) (460)
Contribution under Statute G,II 118 118 95 95
Total expenditure 17,699 5,070 742 23,511 18,789 5,266 912 24,967
Surplus/(deficit) before other gains and losses 1,566 2,612 (3,101) 1,077 (1,260)
3,192		 (2,265) (333)
Gain/(loss) on investments 1,888 4,705 15,304 21,897 1,439 1,759 5,973 9,171
Surplus for the year 3,454 7,317 12,203 22,974 179 4,951 3,708 8,838
Other comprehensive income
Unrealised surplus on revaluation of fixed - - - - 188 - - 188
assets
Actuarial gain/(loss) in respect of pension 175 - - 175 (372)
-		 - (372)
schemes
Total comprehensive income for year 3,629 7,317 12,203 23,149 (5)
4,951		 3,708 8,654

The notes on pages 32 to 54 form part of these accounts

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Statement of Changes in Reserves

Year ended 30 June 2024

Unrestricted
£000
Balance at 1 July 2023
260,557
Surplus from income and expenditure
statement
3,454
Other comprehensive income/(expenditure)
175
Release of restricted capital funds spent in the
year
367
Balance at 30 June 2024
264,553
Unrestricted
£000
Balance at 1 July 2022
259,546
Surplus from income and expenditure
statement
179
Other comprehensive income/(expenditure)
(184)
Transfer in year
(24)
Release of restricted capital funds spent in the
year
1,040
Balance at 30 June 2023
260,557		 Restricted
£000
Endowment
£000
62,682
107,942
7,317
12,203
-
-
(367)
-
69,632
120,145
Restricted
£000
Endowment
£000
58,747
104,234
4,951
3,708
-
-
24
-
(1,040)
-
62,682
107,942		 Total
£000
431,181
22,974
175
-
454,330
Total
£000
422,527
8,838
(184)
-
-
431,181

The notes on pages 32 to 54 form part of these accounts.

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Consolidated and College Balance Sheets

As at 30 June 2024

As at 30 June 2024
Group College Group College
2024 2024 2023 2023
Note £000 £000 £000 £000
NON-CURRENT ASSETS
Tangible assets 10 245,574 245,481 242,591 242,518
Heritage assets 11 1,839 1,839 1,696 1,696
Investment assets 12 218,340 218,340 205,058 205,058
Total non-current assets 465,753 465,660 449,345 449,272
CURRENT ASSETS
Stocks - good for resale 4,202 34 3,959 34
Trade and other receivables 13 4,273 10,177 3,230 9,120
Cash and cash equivalents 14 5,185 3,040 3,053 494
Total current assets 13,660 13,251 10,242 9,648
CREDITORS: amounts falling due within
one year 15 (7,678) (7,184) (8,645) (7,982)
NET CURRENT ASSETS 5,982 6,067 1,597 1,666
TOTAL ASSETS LESS CURRENT
LIABILITIES 471,735 471,727 450,942 450,938
CREDITORS: amounts falling due after
more than one year 16 (15,564) (15,564) (15,769) (15,769)
Provisions
Pension provisions 17 (1,841) (1,841) (3,992) (3,992)
TOTAL NET ASSETS 454,330 454,322 431,181 431,177
RESTRICTED RESERVES
Income and expenditure reserve – 18 120,145 120,145 107,942 107,942
endowment reserve
Income and expenditure reserve – 19 69,632 69,632 62,682 62,682
restricted reserve
189,777 189,777 170,624 170,624
UNRESTRICTED RESERVES
Income and expenditure reserve –
unrestricted reserve 259,179 259,171 255,183 255,179
Revaluation reserve 5,374 5,374 5,374 5,374
264,553 264,545 260,557 260,553
TOTAL RESERVES 454,330 454,322 431,181 431,177

Approved by Council on 3 December 2024 and signed on their behalf by:

Dr Ivan Collister, First Bursar The notes on pages 32 to 54 form part of these accounts.

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Consolidated Cash Flow Statement

Year ended 30 June 2024

Surplus for the year
Adjustment for non-cash items
Depreciation
Non-cash donations to King’s College School
Non-cash donations or donated shares
Loss/(gain) on endowments, donations and investment
property
Pension scheme (credit)/debit
(Increase)/decrease in stocks
Decrease/(increase) in debtors
Increase/(decrease) 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
Net cash transferred to King’s College School
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 14)		 2024
£000
22,973
3,552
-
(25)
(21,896)
(1,975)
(244)
786
(2,997)
(7,416)
667
-
(6,575)
5,558
-
12,093
(7,615)
(142)
(520)
9,374
(667)
(667)
2,132
3,053
2,132
5,185		 2023
£000
8,838
3,445
450
(127)
(9,171)
(498)
(254)
994
149
(7,272)
666
-
(2,780)
5,034
(1,079)
5,859
(10,249)
(216)
(630)
(1,281)
(666)
(666)
(4,727)
7,780
(4,727)
3,053

The notes on pages 32 to 54 form part of these accounts.

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Notes to the Financial Statements

As at 30 June 2024

1. ACADEMIC FEES AND CHARGES

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		 2024
£000
1,792
676
1,008
3,476
60
299
3,835		 2023
£000
1,783
667
967
3,417
39
271
3,727

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		 2024
£000
4,326
186
482
1,283
93
1,368
7,738		 2023
£000
3,796
44
526
1,141
22
1,267
6,796

32

Notes to the Financial Statements

3. ENDOWMENT RETURN AND INVESTMENT INCOME

3a. Analysis of Investment Income
Income drawdown from endowment
(note 3b)
Other investment income
Rent from King’s College School
Cash balances and shared equity
properties
Royalties
Gains/(losses) on investment assets:
Gains on total return investment assets
(below)
(Losses)/gains on other investment
assets
3b. 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 3a)
Unapplied total return for year
included within Statement of
Comprehensive Income and
Expenditure (see note 20)		 2024
£000
6,204
571
392
116
134
7,417
22,832
(935)
21,897
1,677
2,146
3,823
439
22,393
22,832
(576)
(166)
(742)
25,913
(6,204)
19,709		 2023
£000
6,123
458
370
55
266
7,272
9,055
116
9,171
1,840
2,803
4,643
(2,225)
11,280
9,055
(526)
(386)
(912)
12,786
(6,123)
6,663

33

Notes to the Financial Statements

4. OTHER INCOME

Tourist admissions and shop sales
Chapel and choir
Other income
Total
5.
EDUCATION EXPENDITURE
Teaching
Tutorial
Admissions - General
Admissions - Access and Widening Participation
Research
Scholarships and awards
Other educational facilities
Total
6.
ACCOMMODATION, CATERING AND CONFERENCES EXPENDITURE
Accommodation
College members
Third parties
Catering
College members
Third parties
Total		 2024
£000
3,335
373
133
3,841
2024
£000
3,500
1,017
614
1,032
1,495
1,670
781
10,109
2024
£000
5,680
1,434
2,065
989
10,168		 2023
£000
1,998
338
120
2,456
2023
£000
3,113
872
527
944
1,761
1,886
717
9,820
2023
£000
5,138
1,302
1,974
872
9,286

34

Notes to the Financial Statements

7. OTHER EXPENDITURE

Investment management costs
Loan interest
Tourist admission and shop expenditure
Chapel expenditure
Development
USS pension interest charge
CCFPS pension interest charge
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		 2024
£000
892
667
499
2,427
203
57
128
283
5,156
40
11
51		 2023
£000
1,077
666
351
2,060
187
87
85
1,713
6,226
42
9
51

8. ANALYSIS OF EXPENDITURE BY ACTIVITY

2023/24
Education
Accommodation, catering and conferences
Other
Change in USS provision
Contribution under Statute G,II		 Staff costs
(Note 9a)
£000
4,155
4,223
1,719
(2,040)
-
8,057		 Other
operating
expenses
£000
5,122
3,413
3,249
-
118
11,902		 Deprecia-
tion
£000
832
2,532
188
-
-
3,552		 Total
£000
10,109
10,168
5,156
(2,040)
118
23,511
2022/23
Education
Accommodation, catering and conferences
Other
Change in USS provision
Contribution under Statute G,II		 Staff costs
(Note 9a)
£000
3,871
3,792
1,238
(460)
-
8,441		 Other
operating
expenses
£000
5,142
3,039
4,805
-
95
13,081		 Deprecia-
tion
£000
807
2,455
183
-
-
3,445		 Total
£000
9,820
9,286
6,226
(460)
95
24,967

The above expenditure includes £602k as the cost of fundraising (2022/23: £577k).

35

Notes to the Financial Statements

9a. STAFF EXPENDITURE

Staff costs
Salaries and wages
National Insurance
Pension costs
Net change in USS deficit recovery
provision (see Note 17)
Subtotal of pension costs (see
Note 9b)		 College
fellows
£000
2,098
164
224
(853)		 Non-
academic
£000
6,440
562
701
(1,279)		 Total
2024
£000
8,538
726
925
(2,132)		 Total
2023
£000
7,511
631
940
(641)
(629)
1,633		 (578)
6,424		 (1,207)
8,057		 299
8,441

Based on the 2023 valuation of the Universities Superannuation Scheme (USS), the impact of the net change in the USS deficit recovery provision is a credit of £2,132,676 (2022/23: £641,633). This comprises a non-cash credit resulting from the change in assumptions, including the discount rate, of £2,040,207 (2022/23: £460,394) and cash contributions made to reduce the deficit in the year of £92,469 (2022/23: £181,239).

Average staff numbers
2023/24
2022/23		 No. of Fellows
112
105		 FTE non-
academic
staff
191
184

At the balance sheet date there were 137 members of the Governing Body. During the year the average number receiving remuneration was the 112 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
£150,000-£159,999		 2024
3
1
1
-
1
-		 2023
1
1
1
1
-
1

36

Notes to the Financial Statements

During the year remuneration paid to key management 2024 2023
personnel in their capacity as College Fellows were: £000 £000
Key management personnel aggregated remuneration 739 616

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.

9b. PENSION COSTS

The total pension cost included in staff costs for the year (see note 9a) was:

USS
CCFPS
Other
Total		 Employer
contributions
2023/24
Provisions
(Note 17)
2023/24
Total
2023/24
£000
Employer
contributions
2022/23
Provisions
(Note 17)
2022/23
Total
2022/23
£000
430
(2,132)
(1,702)
505
(642)
(136)
-
128
128
-
85
85
367
-
367
350
-
350
797
(2,004)
(1,207)
855
(557)
299

37

Notes to the Financial Statements

10. FIXED ASSETS

a) CONSOLIDATED

Buildings
101,553
5,248
-
5,631
(1,137)
111,295
1,405
1,265
(56)
-
2,614
108,681
100,148
Buildings
101,560
5,250
-
5,631
(1,137)
111,304
1,403
1,265
-
(56)
2,612
108,692
100,157		 Asset in
Course of
Construction
9,209
251
-
(7,672)
-
1,788
-
-
-
-
-
1,788
9,209
Asset in
Course of
Construction
9,209
251
-
(7,672)
-
1,788
-
-
-
-
-
1,788
9,209		 Plant
Furniture
and
equipment

51,720
2,049
-
2,041
-
55,810
2,957
2,254
-
-
5,211
50,599
48,763
Plant,
Furniture
and
equipment

51,482
2,009
-
2,041
-
55,531
2,795
2,235
-
-
5,030
50,501
48,687		 Computer
Equipment
1,212
67
-
-
-
1,279
739
32
-
-
771
508
473
Computer
Equipment
1,125
66
-
-
-
1,191
658
32
-
-
690
501
467
 Group
2024
£000
Group
2023
£000
247,692 254,536
7,615
10,249
-
(2,888)
-
(1,137)
-
(14,205)
254,170 247,692
5,101
7,400
3,551
3,445
(56)
-
(3,364)
(2,380)
8,596
5,101
245,574 242,591
242,591
College
College
2024
£000
2023
£000
247,374 254,231
7,576
10,238
-
(2,890)
-
(1,137)
-
(14,205)
253,813 247,374
4,856
7,178
3,532
3,422
-
(2,380)
(56)
(3,364)
8,332
4,856
245,481 242,518
242,518		 Group
2024
£000
Group
2023
£000
247,692 254,536
7,615
10,249
-
(2,888)
-
(1,137)
-
(14,205)
254,170 247,692
5,101
7,400
3,551
3,445
(56)
-
(3,364)
(2,380)
8,596
5,101
245,574 242,591
242,591
College
College
2024
£000
2023
£000
247,374 254,231
7,576
10,238
-
(2,890)
-
(1,137)
-
(14,205)
253,813 247,374
4,856
7,178
3,532
3,422
-
(2,380)
(56)
(3,364)
8,332
4,856
245,481 242,518
242,518

38

Notes to the Financial Statements

10. FIXED ASSETS (continued)

11. 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		 2024
£000
1,696
142
-
142
1,839		 2023
£000
1,481
215
-
215
1,696		 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

39

Notes to the Financial Statements

12. INVESTMENTS ASSETS

Balance at beginning of year
Additions
Disposals
Gain/(loss)
Transfer to operational buildings
Increase/(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 2024, Kings College held an
investment in the following companies:
King's College Cambridge Enterprises Ltd
King's College Cambridge Developments Ltd
13. TRADE AND OTHER RECEIVABLES
Members of the College
Trade debtors
Amounts due from subsidiary companies
Other debtors		 Group
2024
£000
205,058
535
(8,750)
21,609
(1,194)
1,082
218,340
158,191
647
43,477
-
12,014
479
2,430
1,102
218,340
Holding
Ordinary
Ordinary		 Group
2024
£000
205,058
535
(8,750)
21,609
(1,194)
1,082
218,340
158,191
647
43,477
-
12,014
479
2,430
1,102
218,340
Holding
Ordinary
Ordinary		 College
Group
College
2024
£000
2023
£000
2023
£000
205,058
187,757
187,757
535
-
-
(8,750)
(3,797)
(3,797)
21,609
8,943
8,943
(1,194)
11,000
11,000
1,082
1,155
1,155
218,340
205,058
205,058
158,191
146,551
146,551
647
43,477
-
12,014
951
42,255
-
10,333
951
42,255
-
10,333
479
1,671
1,671
2,430
2,195
2,195
1,102
1,102
1,102
218,340
205,058
205,058
Proportion
of voting
rights
Country of
Incorporation
Nature of
Business
100%
United
Kingdom
Provision of
conference
facilities
100%
United
Kingdom
Provision of
developmen
t facilities
Group
College
Group
College
2024
£000
2024
£000
2023
£000
2023
£000
87
87
84
84
376
373
338
326
-
5,955
-
5,927
3,810
3,762
2,808
2,783
4,273
10,177
3,230
9,120		 College
Group
College
2024
£000
2023
£000
2023
£000
205,058
187,757
187,757
535
-
-
(8,750)
(3,797)
(3,797)
21,609
8,943
8,943
(1,194)
11,000
11,000
1,082
1,155
1,155
218,340
205,058
205,058
158,191
146,551
146,551
647
43,477
-
12,014
951
42,255
-
10,333
951
42,255
-
10,333
479
1,671
1,671
2,430
2,195
2,195
1,102
1,102
1,102
218,340
205,058
205,058
Proportion
of voting
rights
Country of
Incorporation
Nature of
Business
100%
United
Kingdom
Provision of
conference
facilities
100%
United
Kingdom
Provision of
developmen
t facilities
Group
College
Group
College
2024
£000
2024
£000
2023
£000
2023
£000
87
87
84
84
376
373
338
326
-
5,955
-
5,927
3,810
3,762
2,808
2,783
4,273
10,177
3,230
9,120
218,340
158,191
647
43,477
-
12,014
479
2,430
1,102
218,340
Holding
Ordinary
Ordinary
9,120

Included in other debtors is £564,103 (2023: £769,231) that is due in more than one year.

40

Notes to the Financial Statements

14. CASH AND CASH EQUIVALENTS

Group
College
2024
£000
2024
£000
Bank deposits
2,581
2,581
Current accounts
2,598
455
Cash in hand
6
4
5,185
3,040
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
College
2024
£000
2024
£000
Bank loan
205
205
Members of the College
233
233
Trade creditors
634
540
Accruals and deferred income
2,834
2,434
Social security, pension and taxes
588
594
University fees
2,004
2,004
Contribution to Colleges fund
118
118
Amounts due to subsidiary companies
-
-
Other creditors
1,062
1,056
7,678
7,184
16.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group
College
2024
£000
2024
£000
Project Tintagel loan
15,000
15,000
School bank loan
564
564
15,564
15,564		 Group
2023
£000
78
2,970
5
3,053
Group
2023
£000
205
185
1,637
2,733
185
71
95
-
3,534
8,645
Group
2023
£000
15,000
769
15,769		 College
2023
£000
78
412
4
494
College
2023
£000
205
185
1,439
2,322
185
71
95
100
3,380
7,982
College
2023
£000
15,000
769
15,769

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 2024 was £564,103.

41

Notes to the Financial Statements

17. 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
Net change in underlying assumptions
(see Note 9b) -
- Change in underlying assumptions
- USS deficit contributions payable
Balance at end of year		 CCFPS
£000
(1,916)
-
28
-
(128)
175
-
-
(1,841)		 USS
£000
(2,076)
-
-
(56)
-
2,040
92
-		 Total
2024
£000
(3,992)
-
28
-
(184)
175
2,040
92
(1,841)		 Total
2023
£000
(4,120)
-
28
-
(172)
(370)
460
181
(3,992)

18. ENDOWMENTS

Restricted
Permanent
Endowments
Unrestricted
Permanent
Endowments
Group and College
2024
£000
2024
£000
Balance at beginning of year:
Capital
40,242
67,700
New donations and
endowments
22
-
Increase in market value of
investments
4,821
7,360
Balance at end of year
45,085
75,060
Analysis by type of purpose:
Student support
29,678
-
Fellowship
6,067
-
Chapel and choir
4,473
-
Other funds
4,867
-
General endowments
-
75,060
45,085
75,060		 Total
2024
£000
107,942
22
12,181
120,145
29,678
6,067
4,473
4,867
75,060
120,145		 Total
2023
£000
104,234
127
3,581
107,942
26,409
5,405
4,016
4,412
67,700
107,942

42

Notes to the Financial Statements

18. ENDOWMENTS (continued)

Analysis by asset:
Property
Investments
Cash		 Restricted
Permanent
Endowments
Unrestricted
Permanent
Endowments
8,978
14,946
36,008
59,949
99
165
45,085
75,060		 Total
2024
£000
23,924
95,957
264
120,145		 Total
2023
£000
22,606
84,443
893
107,942

19. RESTRICTED RESERVES

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
Permanent
unspent and
other
restricted
income
£000
Restricted
expendable
endowment
£000
1,240
10,152
51,290
-
-
51,290
1,240
10,152
-
1,240
10,152
51,290
80
-
-
-
-
-
317
1,641
571
391
-
3,183
1,498
299
4,313
-
(367)
(1,948)
-
(3,028)
-
(54)
(6)
60
899
11,118
57,615
-
899
-
11,118
57,615
-
899
11,118
57,615		 Total
2024
£000
62,682
51,290
11,392
62,682
80
3,500
3,139
870
4,704
(4,976)
(367)
-
69,632
57,615
12,017
69,632		 Total
2023
£000
58,747
48,984
9,763
58,747
1,930
2,834
2,810
729
1,759
(5,110)
(1,040)
23
62,682
51,290
11,392
62,682

43

Notes to the Financial Statements

19. 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
Permanent
unspent and
other
restricted
income
£000
Restricted
expendable
endowment
£000
-
7,211
22,024
-
-
899
-
951
2,018
-
938
7,889
18,693
3,282
5,727
899
11,118
57,615		 Total
2024
£000
29,235
8,840
20,711
4,181
6,665
69,632		 Total
2023
£000
24,671
8,300
19,662
4,198
5,851
62,682

20. MEMORANDUM OF UNAPPLIED TOTAL RETURN

Memorandum of Unapplied Total Return
2024
£000
Within reserves the following amounts represent the Unapplied Total Return of the College:
Unapplied total return at the beginning of year
113,696
Unapplied total return for the year (note 3b)
19,709
Unapplied total return at end of year
133,405		 2023
£000
107,033
6,663
113,696

21. RECONCILIATION AND ANALYSIS OF NET DEBT

At 30 June
2023
£000
Cash and cash equivalents
3,053
Borrowings:
Amount falling due within one year:
Secured loans
(205)
Borrowings:
Amount falling due after more than
one year:
Secured loans
(15,769)
Total net debt
(12,921)		 Cash Flows
£000
New finance
leases
£000
2,132
-
-
-
205
-
2,337
-		 Other non-
cash
changes
£000
-
-
-
-		 At 30 June
2024
£000
5,185
(205)
(15,564)
(10,584)

44

Notes to the Financial Statements

22. FINANCIAL INSTRUMENTS

2024 2023
£000 £000
Financial assets at fair value through Statement of Comprehensive
income
Listed equity investments (note 12) 158,838 147,502
Other equity investments (note 12) 12,014 10,333
Financial assets that are debt instruments measured at amortised cost
Cash and cash equivalents (note 12 and 14) 5,664 4,724
Other equity investments (note 12) 2,430 2,195
Other debtors (note 13) - -
Financial liabilities
Financial liabilities measured at amortised cost
Loans (note 15 and 16) 15,769 15,974
Trade creditors (note 15) 634 1,637
Other creditors (note 15) 4,835 4,931

23. CAPITAL COMMITMENTS

Authorised future capital expenditure amounted to £618,000 at 30 June 2024 including works on Spalding, Croft Gardens and an electrical upgrade (£3,064,000 at 30 June 2023). In addition, the College has committed to invest a further £340,000 in Private Equity funds.

24. FINANCIAL COMMITMENTS

At 30 June 2024 and 2023 the College had no annual commitments under non-cancellable operating leases.

25. 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:

45

Notes to the Financial Statements

25. PENSION SCHEMES (continued)

ENSION SCHEMES (continued)
University Superannuation Scheme (includes FRS 102)
Cambridge Colleges’ Federated Pension Scheme (includes FRS 102)
Teachers’ Pension Scheme (King’s College School in 2022)
Church of England Funded Pension Scheme
NOW: Pensions		 2024
£000
(1,702)
128
-
11
356
(1,207)		 2023
£000
(47)
85
-
9
252
299

University Superannuation Scheme (USS)

The total cost charged to the statement of comprehensive income and expenditure is (£1,702k) (2022/23 (£47k)).

A deficit recovery plan was put in place as part of the 2020 valuation, which required payment of 6.2% of salaries over the period 1 April 2022 until 31 March 2024, at which point the rate would increase to 6.3%. No deficit recovery plan was required under the 2023 valuation because the scheme was in surplus on a technical provisions basis. The College was no longer required to make deficit recovery contributions from 1 January 2024 and accordingly released the outstanding provision to the statement of comprehensive income and expenditure.

The latest available complete actuarial valuation of the Retirement Income Builder is as at 31 March 2023 (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 2023 valuation was the seventh valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to have sufficient and appropriate assets to cover their technical provisions (the statutory funding objective). At the valuation date, the value of the assets of the scheme was £73.1 billion and the value of the scheme’s technical provisions was £65.7 billion indicating a surplus of £7.4 billion and a funding ratio of 111%

The key financial assumptions used in the 2023 valuation are described below. More detail is set out in the Statement of Funding Principles (uss.co.uk/about-us/valuation-andfunding/statement-of-funding-principles).

CPI assumption Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves less: 1.0% p.a. to 2030, reducing linearly by 0.1% from 2030

46

Notes to the Financial Statements

25. PENSION SCHEMES (USS continued)

Benefits with no cap: CPI assumption plus 0.03% Pension increases (subject to a floor of 0%) Benefits subject to a “soft cap” of 5% (providing inflationary increases up to 5%, and half of any excess inflation over 5% up to a maximum of 10%): CPI assumption minus 0.03%

Discount rate (forward rates) Fixed interest gilt yield curve plus: Pre-retirement: 2.5% p.a. Post retirement: 0.9% p.a.

The main demographic assumptions used relate to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2023 actuarial valuation. The mortality assumptions used in these figures are as follows:

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

The current life expectancies on retirement at age 65 are:

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

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 2024, 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.

47

Notes to the Financial Statements

25. PENSION SCHEMES (CCFPS continued)

The principal actuarial assumptions at the balance sheet date were as follows:

2024 2023
% p.a. % p.a.
Discount rate 5.10 5.20
RPI assumption 3.35 3.40*
CPI assumption: To 2030 2.35 2.80*
CPI assumption: From 2031 3.35 2.80

The underlying mortality assumption is based upon the standard table known as S3PA on a year of birth usage with CMI_2023 future improvement factors and a long-term rate of future improvement of 1.25% p.a, a standard smoothing factor (7.0) and no allowance for additional improvements (2023: S3PA on a year of birth usage with CMI_2022 future improvement factors and a long-term 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 2024 (with comparative figures as at 30 June 2023) are as follows:

Present value of plan liabilities
Market value of plan assets
Net defined benefit asset/(liability)		 2024
£000
(11,445)
9,604
(1,841)		 2023
£000
(11,595)
9,679
(1,916)

48

Notes to the Financial Statements

25. PENSION SCHEMES (CCFPS continued)

The amounts to be recognised in Profit and Loss for the year ending 30 June 2024 (with comparative figures for the year ending 30 June 2023) are as follows.

Current service cost & ongoing expenses
Interest on net defined benefit (asset)/liability
Total		 2024
£000
28
100
128		 2023
£000
28
57
85

Changes in the present value of the plan liabilities for the year ending 30 June 2024 (with comparative figures for the year ending 30 June 2023) 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		 2024
£000
11,595
-
(679)
585
(56)
11,445		 2023
£000
13,302
-
(583)
494
(1,618)
11,595

Changes in the fair value of the plan assets for the year ending 30 June 2024 (with comparative figures for the year ending 30 June 2023) 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)		 2024
£000
9,679
28
-
(712)
485
124
9,604
609		 2023
£000
11,812
28
-
(619)
437
(1,980)
9,679
(1,543)

The major categories of plan assets as a percentage of total plan assets for the year ending 30 June 2024 (with comparative figures for the year ending 30 June 2023) are as follows:

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

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

49

Notes to the Financial Statements

25. PENSION SCHEMES (CCFPS continued)

Analysis of the remeasurement of the net defined benefit liability recognised in Other Comprehensive Income (OCI) for the year ending 30 June 2024 (with comparative figures for the year ending 30 June 2023) 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 (loss)/gain recognised in OCI		 2024
£000
124
46
5
175		 2023
£000
(1,980)
(496)
2,106
(370)

Movement in surplus/(deficit) during the year ending 30 June 2024 (with comparative figures for the year ending 30 June 2023) are as follows:

Surplus/(deficit) in plan at beginning of year
Recognised in Profit and Loss
Contributions paid by the College
Actuarial (loss)/gain recognised in OCI
Surplus/(deficit) in plan at the end of the year		 2024
£000
(1,916)
(128)
28
175
(1,841)		 2023
£000
(1,490)
(85)
29
(370)
(1,916)

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 2023. This showed that the plan’s assets were insufficient to cover the liabilities on the funding basis. A Recovery Plan has been agreed with the College, which commits the College to paying contributions to fund the shortfall.

These deficit reduction contributions are incorporated into the plan’s Schedule of Contributions dated 20 June 2024 and are as follows:

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

50

Notes to the Financial Statements

25. 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. It is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body, and this means 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, which were £11k in 2023 (2022: £9k), plus any figures arising from contributions in respect of the Scheme’s deficit (see below). The 2021 valuation showed the Scheme to be fully funded and as such in 2023, following the valuation results being agreed, the deficit contributions paid were £0 (2022: £1k).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on assets of £2,720m and a funding target of £2,160m, assessed using the following assumptions:

Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the Scheme was fully funded.

The deficit recovery contributions under the recovery plan in force at each 31 December were as follows:

1 January 2021 to 1 January 2022 to 31 December 2021 31 December 2023 Deficit repair contributions 7.1% nil

An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from April 2022, and remained in place until December 2022.

51

Notes to the Financial Statements

25. PENSION SCHEMES (CEFPS continued)

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

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2022 is nil. The movement in the balance sheet liability over 2021 and over 2022 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		 2023
£’000
2022
£’000
-
2
-
(1)
-
-
-
(1)
-
-

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. No assumptions are needed for December 2022 as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2021 since pensionable stipends for the remainder of the recovery plan were already known.

2023 2022 2021
% p.a. % p.a. % p.a.
Discount rate n/a n/a 0.0
Price inflation n/a n/a n/a
Increase to total pensionable payroll n/a n/a -1.5

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 £356,000 (2022/23 £252,000).

26. 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.

52

Notes to the Financial Statements

27. 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 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:

2024 2023
From To Number Number
£0 £10,000 7 14
£10,001 £20,000 4 -
£20,001 £30,000 1 1
£30,001 £40,000 1 1
£40,001 £50,000 - -
£50,001 £60,000 - -
£60,001 £70,000 - -
£70,001 £80,000 2 -
£80,001 £90,000 - -
£90,001 £100,000 - -
£100,001 £110,000 - -
£110,001 £120,000 - -
£120,001 £130,000 - 1
Total 15 17

53

Notes to the Financial Statements

27. RELATED PARTY TRANSACTIONS (continued)

The total Trustee salaries were £296,529 for the year (2022/23 £212,568).

The trustees were also paid other taxable benefits (including associated employer National Insurance contributions and employer contributions to pensions) which totalled £68,843 for the year (2022/23 £47,037).

In addition, the College has provided shared equity loans to its Fellows that amount to £2,430,000 (2022/23 £2,195,000) at the year end and are included within investment assets.

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.

54