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2021-07-31-accounts

Annual Report and Financial Statements

Year ended 31 July 2021 Charity No. 1141259

UNIVERSITY COLLEGE

Annual Report and Financial Statements

Contents

Contents Pages
Governing Body, Officers and Advisers 2-5
Report of the Governing Body 6-20
Auditor’s Report 21-26
Statement of Accounting Policies 27-32
Statement of Financial Activities 33
Balance Sheet 34
Statement of Cash Flows 35
Notes to the Financial Statements 36-53

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UNIVERSITY COLLEGE

Year ended 31 July 2021

Report of the Governing Body

MEMBERS OF THE GOVERNING BODY

The Members of the Governing Body are the College’s charity trustees under charity law. The members of the Governing Body who served in office as trustees during the year or subsequently are detailed below. During the year, the main operational activities of the Governing Body were carried out through six committees.

The current membership of these committees at the date of approval of these accounts is shown against each Fellow according to this reference:

(1) (2) (3) (4) (5) (6)
The Master, Right Honourable
Baroness Valerie Amos CH PC		 Appointed 1stSeptember 2020 ● ● ● ● ● ●
Professor R J Nicholas Retired 30 September 2021
Professor A W Roscoe ●
Professor J F Wheater ●
Dr K L Dorrington Retired 30 September 2021
Professor T W Child ●
Dr C J Pears ●
Professor N Woods ●
Dr S Collins ● ●
Professor G M Henderson ●
Professor P D Howell ●
Professor C J Holmes ●
Professor J Hein
Professor P Jezzard ●
Professor A Ker ●
Professor W Allan
Professor T Povey
Professor O Zimmer

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UNIVERSITY COLLEGE

Report of the Governing Body

Year ended 31 July 2021

(1) (2) (3) (4) (5) (6)
Revd Dr A Gregory ● ● ●
Professor D Logan
Dr L Kallet Retired 30 September 2021
Dr B Jackson ● ●
Professor N Yeung ● ●
Professor M Benedikt
Professor S C Tsang
Professor T Sharp ●
Dr M Smith ● ●
Professor N Halmi ●
Professor A Johnston
Professor S Mavroeidis ●
Professor P Jones
Mr J Rowbottom
Dr M Galpin ●
Dr K Milewicz ●
Dr N Nikolov
Dr J Benesch
Dr C Leaver
Mrs A Unsworth ● ● ● ● ●
Dr A Bell ● ● ● ● ●
Professor C Terquem
Professor M Barnes ●
Dr I Jacobs
Dr S Smith ●
Professor K O’Brien Resigned 30 September 2021
Dr P Rebeschini ●
Dr A I Grant ● ● ●
Professor G Screaton
Professor J E S Moshenska
Professor J D Hamkins

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UNIVERSITY COLLEGE

Report of the Governing Body

Year ended 31 July 2021

(1) (2) (3) (4) (5) (6)
Professor Ruth Chang ●
Mr Gordon Cox ● ●
Dr Richard Ashdowne ●
Professor R Rickaby
Professor A Smith
Professor T Y Tan
Dr R Chitnis ● ●
Dr M Schentuleit ●
Dr J Bryson
Dr M Filip
Dr N Moneke Appointed 1stSeptember 2020
Professor B Klin Appointed 1stSeptember 2021
Dr N Talbot Appointed 20thOctober 2021

The College is also guided and governed by three further committees, namely: Audit Committee, Remuneration Committee and Investment Committee. As the membership of these committees correctly and additionally includes external members as well as Fellows of the College, their complement is not listed here. For the membership of these committees, see pages 7-8.

COLLEGE SENIOR STAFF

The senior staff of the College to whom day to day management is delegated are as follows:

The senior staff of the College to whom day to day management is delegated are as follows:
Valerie Amos Master
Andrew Grant Finance Bursar
Angela Unsworth Domestic Bursar
Andrew Bell Senior Tutor
Gordon Cox Development Director

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UNIVERSITY COLLEGE

Report of the Governing Body Year ended 31 July 2021

COLLEGE ADVISERS

Investment Managers

Credit Suisse (UK) Limited 5 Cabot Square London, E14 4QR

Goldman Sachs International River Court, 120 Fleet Street London, EC4A 2BE

Allianz Global Investors GmbH 199 Bishopsgate London, EC2M 3TY

Chartered Surveyors and Property Advisers

Cluttons LLP Seacourt Tower, West Way Oxford, OX2 0JJ

Carter Jonas LLP Mayfield House, 256 Banbury Road Oxford, OX2 7DE

Stephenson & Son York Auction Centre, Murton York, YO19 5GF

Bidwells

Seacourt Tower, West Way Oxford, OX2 0JJ

Auditor

Crowe U.K. LLP Aquis House 49-51 Blagrave Street Reading, RG1 1PL

Bankers

HSBC 65 Cornmarket Street Oxford, OX1 3HY

Solicitors

Blake Morgan Seacourt Tower, West Way Oxford, OX2 0FB

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

College address

High Street, Oxford OX1 4BH

E- Links

Web Home Page:www.univ.ox.ac.uk Facebook:facebook.com/universitycollegeoxford Twitter:@UnivOxford YouTube:http://bit.ly/univyoutube Pinterest:uk.pinterest.com/UnivOxford Instagram:www.instagram.com/univcollegeoxford/

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UNIVERSITY COLLEGE

Report of the Governing Body

Year ended 31 July 2021

REPORT OF THE GOVERNING BODY

The Members of the Governing Body present their Annual Report for the year ended 31 July 2021 under the Charities Act 2011 together with the audited financial statements for the year.

REFERENCE AND ADMINISTRATIVE INFORMATION

The College of the Great Hall of the University of Oxford, of ancient foundation and later incorporated by a Royal charter of 15 February 1573, is known as University College (“the College”). It is a chartered charitable corporation.

The College is registered with the Charity Commission (registered number 1141259).

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

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing documents

The College is governed by its statutes which are made from time to time by order of Her Majesty in Council in accordance with the Royal Charter of 1573, and the Universities of Oxford and Cambridge Act 1923. New statutes were approved by Her Majesty on 13 July 2016. The new regulations, which are necessary to enable the implementation of these statutes, came into effect with the new statutes on 1 February 2018, replacing and superseding in their entirety the existing ones. The new statutes and regulations formally state the College’s charitable object, identify the College’s charity trustees, establish appropriate procedures for managing conflicts of interest and introduce a Remuneration Committee to oversee employee benefits, including remuneration and other benefits provided to members of the Governing Body and Fellows of the College.

Governing Body

The Governing Body is constituted and regulated in accordance with the College Statutes, the terms of which are enforceable by the Visitor, who is Her Majesty the Queen. The Governing Body is self-appointing, with the decision to elect a new trustee being taken by a vote of two-thirds of those present and voting at a meeting of the Governing Body.

New members of the Governing Body are elected as a consequence of their appointment to a Tutorial, Professorial or other relevant fellowship.

The Governing Body determines the ongoing strategic direction of the College and regulates its administration and the management of its finances and assets. It meets regularly under the chairmanship of the Master and is advised by the six main operational committees.

Recruitment and training of Members of the Governing Body

New members of the Governing Body are recruited following interview and selection procedures for the associated academic, administrative, or other post and inducted into the workings of the College, including Governing Body policy and procedures, by the Senior Tutor or Master (as appropriate) who provides them with notes of guidance and oral advice.

Members of the Governing Body are provided with trustee training by external advisers and college officers.

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UNIVERSITY COLLEGE

Report of the Governing Body

Year ended 31 July 2021

Remuneration of Members of the Governing Body and Senior College Staff

Members of the Governing Body, who are predominantly academic Fellows and are also teaching and research employees of the College and/or the University, receive no remuneration or benefits from their trusteeship of the College. Those trustees who are also employees of the College receive remuneration for their work as employees of the College, which is set based on the advice of the College’s Remuneration Committee.

Remuneration Committee members are the Master, Finance Bursar, Senior Tutor and a Fellow who is not in receipt of remuneration from the College. In addition, three external members comprise the standing complement. Where possible, remuneration is set in line with that awarded to the University’s academic staff, and based on nationally agreed pay scales.

The remuneration of senior college staff is set by reference to nationally agreed pay scales and local conditions. The membership of Remuneration Committee is appropriately adjusted when the Committee is considering the remuneration of its College members or their peers (Note 18).

In deciding appropriate pay levels, the College aims to strike a balance between paying enough to recruit and retain people with the skills the College needs, the responsibility to the Office for Students to spend public money appropriately and the College’s donors’ expectations that the money they entrust to the College will be used wisely to promote academic excellence. In setting the pay of key management, the Remuneration Committee takes account of the skills and experience required for each of the roles and the remuneration in the sectors from which suitable candidates for such posts would be found. They also take account of affordability for the College. The College does not pay bonuses or other incentive payments to its senior officers. Pay increases to key management and other employees are awarded subject to excellent performance.

Organisational management

The members of the Governing Body meet nine times a year to make decisions on the recommendations of the six main committees. The work of developing policies and monitoring their implementation is carried out by the six main committees listed below:

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UNIVERSITY COLLEGE

Report of the Governing Body

Year ended 31 July 2021

In addition to the six main committees meeting frequently through the year, the College relies on a number of committees that consider particular aspects of College operation. These committees include external members. Their purpose and their current membership are:

The day-to-day running of the College is delegated to the senior officers listed on page 4 above, supported by their staff in the Domestic Bursary, Treasury and Works Department, Academic Office and Development Office, and operating under the oversight of the committees listed above.

Structure and relationships

The College, though autonomous, is a member of the collegiate University of Oxford. Material interdependencies between the University and the College arise as a consequence of this relationship. The College administers many special trusts, as detailed in Notes 15 and 16 to the financial statements.

OBJECTIVES AND ACTIVITIES

Charitable Objects and Aims

The College’s Object is to promote the advancement of university education, learning and research as a College in the University of Oxford (including maintaining its historic buildings and other patrimony, pastoral care of its students, and public liturgy).

The Governing Body has considered the Charity Commission’s guidance on public benefit and in keeping with its objects, the College’s aims for the public benefit are to:

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UNIVERSITY COLLEGE

Report of the Governing Body

Year ended 31 July 2021

Activities and objectives of the College

The College’s activities are focused on furthering its stated objects and aims for the public benefit.

Our key objectives for the year included:

ACHIEVEMENTS AND PERFORMANCE

The following table summarises the degrees awarded to members of the College during the year:

owing table summarises the degrees awarded
Degrees Awarded 2020-212019-20
Undergraduate
1st& Upper 2ndClass
Taught Graduate
Research Graduate		 115
110
93.0%
93.6%
27
43
41
34

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UNIVERSITY COLLEGE

Report of the Governing Body Year ended 31 July 2021

These results across both the undergraduate and graduate bodies represent an astonishingly high achievement at a time of great upheaval in the wake of the pandemic.

Throughout the challenging circumstances of the pandemic, the College has worked hard to support the wellbeing and success of its students and staff. Home-working arrangements were implemented, approaches to remote teaching and learning developed and enhanced, to the greatest extent possible a sense of community fostered at distance, and financial and practical support, including emergency accommodation, made available to those whose circumstances required it. Though a difficult time for all students and staff, high levels of student satisfaction were maintained and reported in feedback.

The total of scholarships, prizes, grants, bursaries and hardship awards in 2021 was £1,304k (2020: £1,261k) including Oxford Bursary payments (Note 6). In addition, further awards totalling £130k (2020: £112k) were made by the Univ. Old Members’ Trust to students of the College.

The College has continued to expand its provision of graduate studentships in 2020-21 using newly endowed studentship funds leveraged by the University's Graduate Scholarship Matched Fund, and by linking College funds with Departmental and Divisional funding, to create a large number of fully funded graduate studentships.

% Receiving Awards 2020-21
2019-20
Graduates
Undergraduates		 48%
46%
26%
26%

*excludes those receiving small awards e.g. book grants etc.

Dropout rates at the College continue to be exceptionally low compared to the national average of 8.3% in 201819 (Higher Education Statistics Agency (“HESA”) Non-continuation following year of entry 2017-18).

2020-21
2019-20
% of Undergraduates that do not continue their
course after the firstyear		 0.8%
0.83%

Despite the restrictions imposed by the pandemic, impactful schools liaison and access work has continued at College through a range of online modes, and 23 significant events took place between January and July 2021. This included three online subject study days which saw the College engage with 224 talented Year 12 students from all over the UK. By making recordings of the events available to unsuccessful applicants we were able to offer an insight into College life and study to a further 1,167 students. Working with Magdalen College and the Faculty of History, the College also co-organised an online Humanities Study Day specifically for students from Black, Asian, or Minority Ethnic backgrounds.

The College’s online learning resource for pre-university students, Staircase12, has also been refreshed with new material.

The College’s Ambassador Scheme has also continued in a new online format with 82 members. New ambassadors were welcomed to the scheme in the early spring and received training in supporting SLAO run events as well as how to run their own independent school visits.

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UNIVERSITY COLLEGE

Report of the Governing Body

Year ended 31 July 2021

In the pivot to online delivery of the College’s access and schools liaison work, we were mindful that some disadvantaged students had limited access to the internet or IT equipment, what is known as ‘digital deprivation’. To mitigate this, funds from the OMT Student Support and Access Committee (which are typically used to support travel expenses to in-person outreach events) were repurposed to offer Digital Access Awards. These awards were offered to students with places on our virtual study days and included items such as noise cancelling earphones, limited internet packages, and computer tablets. Students who were eligible for these awards included those who were care experienced, had previously or were currently eligible for school meals, or who were in receipt of the 16-18 bursary.

The College’s Staircase12 resource has also been refreshed with new material. Furthermore, we are taking steps to complement our digital outreach on Staircase 12 with physical resource packs. This includes offering carefully selected books with short critical commentaries by the College’s tutors to target schools to help ensure that students have access to the kinds of stretching subject materials which will help them prepare to apply to selective universities.

Research is a duty of all academic fellows and the College is pleased to celebrate their many academic accomplishments. In the last year, five Tutorial Fellows were promoted from Associate Professor to Full Professor in recognition of their important contributions to their respective fields. The College further supports research by granting sabbatical leave and special leave to fellows for specific research activities. The College continues to employ outstanding researchers at an early stage of their careers. In 2021 there were 9.6 FTE junior researchers employed by the College (2020: 9.7 FTE). The College also specifically allocated £119k (2020: £106k) for the purchase of books/equipment and conference attendance to support both junior and senior fellows in their research efforts.

FINANCIAL REVIEW

Sources and Uses of Funds

The College’s endowed investments are deployed in commercial property, financial and fixed income assets with the aim of generating annual income and capital growth in order to support more extensive charitable activities and College operational expenditure than would be possible otherwise. The normal financial running of the College through this financial year continued to be disturbed by the impact of the COVID-19 pandemic, which is presently unrelieved because of the declined pay-out from business interruption insurance.

Although the College was operating at least in part in and out of lockdown, not all students were in residence, investment dividend distributions were withheld by companies wishing to manage their cash reserves and rental income cash receipts from the College’s commercial properties remained severely impacted. In addition, there was no meaningful conference income this year because of the capability of the College to accommodate conferees with confidence during the pandemic. As a consequence, income generated from within the College was down £1.5m and net income from investment assets (after provision for doubtful debts) was down £1.8m when compared with the last full year result (2018/19). The provision made against the tenanted rental debtor balance at 31 July 2021 is £888k (2020: £581k).

The College presents its accounts this year in a total return format for the first time. The total return on the College’s investments, after fees and interest on the College’s bonds, was 11.6% (2020: negative 3.8%). Total gains/(losses) on investments was £ 13.1 m, (2020: £(9.0)m).

Despite these challenges, there has been no unmanageable risk to the College’s status as a ‘going concern’ because it has been able to draw on its buffer of liquid resources. These have ensured that the College’s debt service, stipends, salaries and all other liabilities as they fell due have been paid in a timely manner. The College recognized some £0.3m (2020: £0.4m) of Other Income arising from an average of 44 (2020: 89) staff being put on the government’s furlough scheme over the period. The College topped up the furlough payments to all staff to make-up to 100% of normal pay.

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Report of the Governing Body

Year ended 31 July 2021

The College has made good progress in its preparations to invest in developing its student residences to enhance its pastoral provision and support its academic delivery. In particular, its ‘Univ North’ scheme to develop the land at 115 Banbury Road, which is conjoint with the College’s existing properties at its Staverton Road Annexe, secured planning consent in October 2020 for a master scheme providing up to 150 new bed spaces and ancillary facilities. Univ North’s ancillary facilities include a student café, nursery, gym and study rooms with the buildings across the whole site set in carefully considered landscaping.

The attention in 2021 has been on rapidly and professionally progressing the management plans that respond to the 39 conditions to the planning consent, enhancing the College’s internal financial processes in anticipation of the demands of the College’s largest capital programme in over 300 years, and positioning the project team for the construction phase. Given the disruption in construction supply chains in the fallout of the pandemic, and the challenging circumstances prevailing as the nation came out of lockdown, the project has not been disadvantaged by COVID-19 in the way that it might have been had the project been further advanced. As well as investments in its wider functional estate, a total of £1.7 million (2020: £2.1 million) was spent on capital projects (see Note 8).

Development activity

The College is fortunate and remains deeply grateful to have such a generous community of donors and volunteers that are so vital to the College’s fundraising and development activity. They are vital to the College.

Fundraising at the College has been in support of teaching and research at the College and with a particular focus on Univ North, the College’s major development in north Oxford. The College’s fundraising is performed by professionals employed by the College, often supported by College members who may act as champion volunteers under the close guidance of the Development Office.

All of the fundraising is with those with whom the College has a pre-existing relationship. The College continues to work to maintain the integrity of its data and to ensure that all evidence of consent, whenever it is required, is recorded. The College’s compliance with UK-GDPR regulations and the Charities (Protection and Social Investment) Act 2016 are central to the governance of its development activity.

It has been a matter of concern that the College was notified in May 2020 that Blackbaud, a computer software company and service provider to many charities including the College, was subject to a ransomware attack in February 2020. The College notified the Information Commissioner's Office (“ICO”) and its membership promptly on receipt of the notice from Blackbaud and in May 2021 the College was cleared by the ICO of any wrongdoing in relation to this matter.

The College is registered with the Fundraising Regulator and follows their guidance and best practice when working with vulnerable people. A Donor Charter survey of all supporters underpinned a new strategy for donor relations, improved reporting and the creation of a specialised Donor Relations position within the College. A link to the College’s privacy notice is included in all communications, along with an opt-out option.

The Development Committee meets several times each year and provides advice and strategic perspectives on fundraising and Old Member engagement. The College has had no complaints about its fundraising engagement processes.

Inevitably, the COVID-19 pandemic was disruptive to development activity and there was a drop in the total number of donors to the College and participation rate remained at a lower than normal level of around 25.37%. There were 1456 donors making a total of 7457 gifts. The challenges during the financial year include cancellation of events and travel. Notwithstanding, donations recognised in the accounts total £8.4m (2020: £9.9m), with £9.8m raised as new pledges to be fulfilled in the year or in later years, together with in-year commitments made and paid

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UNIVERSITY COLLEGE

Report of the Governing Body

Year ended 31 July 2021

Reserves policy

The College’s reserves policy is to maintain in the event of an unexpected revenue shortfall sufficient free reserves to enable it to meet its short-term financial obligations, including the semi-annual payments of interest on the bonds and Senior Note (see Note 14). This general operational reserve is a liquidity buffer comprising 3 months of operating expenditures that allows the College to be managed efficiently and provides assurance of uninterrupted services. The College’s free reserves as at 31 July 2021 were on target at £m.

Total Funds

Total funds of the College at the year-end amounted to £225.5m(see Note 15) (2020: £209.1m) including endowment capital of £142.4m (2020: £125.5m) and unspent restricted income funds totalling £10.8m (2020: £13.0m) and unrestricted funds of £72.3m (2020: £70.6m). The unrestricted funds comprise £55.9m (2020: £55.3m) representing the book value of tangible fixed assets less associated funding arrangements, designated funds amounting to £12.5m (2020: £11.5m) and the College’s general reserve of £3.9m (2020: £3.8m).

Details of the funds held for educational and research purposes are set out in Note 16.

Risk management and Internal Controls

The Governing Body has accountability for managing all risks faced by the College. It has reviewed the processes in place for managing risk and the identified principal risks to which the College is exposed. While the senior officers own the risk management processes in their respective areas of accountability, the College is working to progress a more holistic process that will help assure risk prioritisation across the College’s activities. The Audit Committee, through its annual cycle of meetings, probes and challenges management responses on a rolling basis.

Policies and procedures within the College are reviewed by the relevant College committee(s). For example, responses to risks to delivery of the College’s higher education objects are reviewed and shaped by the Academic Committee; financial risks, such as funding the Univ North development, are assessed by the Finance Committee and investment risks are monitored by the Investment Committee. All College committees are subject to review by the Audit Committee from time to time. The Domestic Bursar reviews health and safety issues with other departmental heads. Training courses and other forms of career development are available to members of staff to enhance their skills in risk-related areas.

For convenience, risks are considered under the broad headings of: Governance; Operational; Financial; External and Compliance. The approach to managing risks is characterised accordingly:

Operational – the College has a range of policies governing the way the higher educational objects of the College are delivered, including academic policies covering students’ engagement and academic research, as well as non-academic policies governing the day-to-day operations of the College.

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Report of the Governing Body Year ended 31 July 2021

Financial – the Governing Body is regularly presented with financial and investment data having been first scrutinised by the Finance Committee and, as appropriate, the Investment Committee. Appropriate liquidity is maintained within the endowment assets to be prepared for potential existential threats to the College. The COVID-19 pandemic through 2020/21 has meant that these resources have been drawn upon to cover missing incoming cash receipts in the period.

External – the Governing Body is aware of the changing landscape to its delivery of academic excellence. It is recognised that the context in which education and research is being delivered is evolving rapidly, with recent challenges in relation to freedom of speech, and the impact of dynamic campaigns on environmental sustainability, Black Lives Matter, #MeToo, the trans debate, the importance of fair pay and living wage. External forces include new ones such as the declining prospective value of fellows’ pensions, alongside the traditional ones of financial support for early career academics, and environmental matters such as the climate challenge and what the College is doing in response.

Compliance with law & regulation – management receive training and advice on compliance issues in their areas of responsibility, including, for example, Prevent, health and safety, access support and data protection. The College’s statutory Data Protection Officer, under EU General Data Protection Regulations, rests with ClearComm, which is part of Moore Kingston Smith, with the current nominated lead being Shaun Beresford.

The impact of COVID-19 merits further mention as an operational risk that prevailed at the start of this financial year. While there was no lasting impact on the College’s higher educational activities, the College was disturbed and delivering its objects placed an additional toll upon all its staff. The College has had the financial resources to see it through the pandemic and, as a consequence, has not signalled a major incident to the Charity Commission. As can be seen in the tables below, the College’s business continuity plans, developed previously as risk management in readiness, were put into full and effective operation.

The College’s insurances against the unforeseen are extensive and are reviewed annually. Indeed, the insurance regime continues to be under scrutiny because of the exceptional risk circumstances prevailing though 2021.

The College’s management processes seek to provide assured risk identification and assessment in order to drive the right management action according to their potential impact on the College. Some risks are enduring, or ever present. In contrast, some risks maybe emerging, temporary and short term, arising either through some external step-change, or from a material new project or change in College direction arising from a new initiative.

Addressing the Enduring Risks first, these are characterised by the need for constant and progressive management to enhance the College’s processes. They are set out in the table below:

Title Enduring Risk Potential Impact Management
Health and
Safety,
including
safeguarding.		 Risk of
avoidable injury
and harm to
individuals.
Failure to
discharge full
duty of care with
consequences
to individuals’
physical and/or		 Harm to member(s) of
College. Loss of
licence to operate, with
close attention by
regulatory authority
and monitored
remediation plan
undertaken.
Potentially, the risk of
fines and grave		 This risk is controlled through clear H&S policy
setting expectations of conduct on all activities
including hazardous ones, e.g., working at height
servicing buildings; welfare processes for young
people in College, keeping all members safe
through the COVID-19 pandemic. COVID-19
protocols have been attended to with very high
attention, including offering support to other
colleges. Fire safety and H&S reviews assessed
at least annually and on any change of operation.

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UNIVERSITY COLLEGE

Report of the Governing Body

Year ended 31 July 2021

Title Enduring Risk Potential Impact Management
mental
wellbeing.		 material reputational
damage.
Financial –
Financial
management		 Loss of income
from changes in
student
financing,
research
support, or
commercial
returns from our
endowment
assets including
that arising
acutely from the
impact of
COVID-19.		 Inability to fund core
activities. Inability to
sustain College’s
endowment.		 Engage with the University to sustain funds for
teaching and research, and access appropriate
new resources. Regular reviews by Finance
Committee to challenge College’s use of funds in
the context of its financial performance, and
Investment Committee to guide investment
plans, ensures that financial management
receives scrutiny and challenge. An operational
general reserve is maintained to manage
through normal cycles and a more substantial
prudential reserve is held in liquid assets as
cover for any existential risk. The College is
bearing down on expenditure in response to the
damage to cash flows arising from COVID-19
impact on income.
Operational -
Students		 Failure to
attract, recruit
and admit
sufficient
appropriate
students.		 Loss of status as an
elite academic
institution; loss of
academics and income
leading to decline.		 Maintain numbers through realistic over-offering,
and participation in Open Offer schemes. Adhere
to
the
University’s
common
admissions
framework. Champion the wider adoption of
Univ’s Opportunity Programme by supporting
“Opportunity Oxford”, to deepen widening
participation and thereby tap into the nation’s
wider
talent
pool.
Develop
the
Beacon
Programme to address the risk of missing talent
in underrepresented sections of society at
Oxford.
Operational -
Students		 Failure to teach
and supervise
students to an
appropriate
standard.		 Student under-
performance.
Reputational damage.		 Regular monitoring of student progress and
quality of teaching provision. Annual review of
quality assurance measures by reference to
Oxford
University
guidelines.
Additional
measures are in place to mitigate the effects of
the COVID-19 pandemic and HMG restrictions
on our student members.
Operational -
Staff		 Failure to recruit
and retain high
quality
academic staff.		 Poor teaching and
care of students.
Adverse effect on
research reputation.		 Joint appointment procedures followed by the
College and Oxford University. Policies to
support research and research leave. Rewards
Policy approved to underpin remunerative
processes for efficiency and effectiveness.
Operational -
Students		 Substandard
support for
students with
disabilities,who		 Failure of affected
students to progress
satisfactorily.		 The Equality, Diversity, and Inclusion Committee
provides the leadership platform and agency for
addressing this risk. Provision of services for
studentswithdisabilitiesis supported by a

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UNIVERSITY COLLEGE

Report of the Governing Body Year ended 31 July 2021

Title Enduring Risk Potential Impact Management
may be
vulnerable or
otherwise
disadvantaged.		 dedicated Disability & Welfare Administrator and
the College works closely with the University’s
Disability Advisory Service. The College is
pursuing a multi-year Accessibility budget to
invest in improvements to our functional
premises in support.
Under-represented student participation will be
bolstered by the introduction of the Beacon
programme of bursaries and support.
Compliance -
Governance		 Non-compliance
with statutory
requirements,
such as Charity
SORP, GDPR,
Health &Safety,
and similar.		 Charges and fines
arising from unlawful
acts, e.g., distribution
of sensitive personal
data, rising to criminal
charges for fraud.		 Close and regular contact with legal advisors
helps ensure proactive attention and response to
changes of legislation.
Data protection governance implemented and
maintained across all departments for UK GDPR
compliance. Sensitive welfare and personal data
are kept securely and access restricted and
retention schedules maintained. Data breach
reporting appears robust and there is evidence
of a culture of open reporting. GDPR compliance
is subject to audit by the DPO. Main focus of risk
management is presently on third parties who
are processing College personal data.
External –
Information
and IT
Provision		 Physical
damage to IT
equipment and
virus/malware
attack. Cyber-
attack for
ransom is an
increasing risk.		 Loss of key data and
disruption to day to
day operations.		 Essential files stored on central servers with
daily backups and continuous replication of the
servers onto a dedicated disaster recovery site.
Secure access to College network to computers
that have been screened for virus/malware,
which is particularly important given the
reduction in affordable insurance cover for cyber
threats have been enhanced.

The risks to the College’s delivery and operation that are not enduring arise from time to time due to either an external event or particular choices or changes that the Governing Body may make, such as a new project or direction. These risks may therefore emerge and persist for several periods, before the material risk is managed away, the impact of the risk event declines or the risk becomes enduring. This evolution reflects the dynamic nature of risk management. All external pressures, new legislation and similar, require attention and potentially deeper management action as the judgement develops on the scale of risk and its implications. Therefore, in addition to the 'Enduring' risks above, further risk management effort was delivered to manage certain ‘Emerging’ risks, including:

Title Emerging Risk Potential Impact Management
Financial –
Univ North		 The expansion of
the College’s
north Oxford site		 Worst outcome
includes enduring
inability to fund		 Univ North development project consented
scheme was subject to a dedicated risk review that
identified
17
risk
issues.
Satisfactory

16

UNIVERSITY COLLEGE

Report of the Governing Body Year ended 31 July 2021

Title Emerging Risk Potential Impact Management
with the material
£62 million
development
creates the
potential for
financial distress
as well as
unfulfilled
expectations.		 core activities
and/or sustain
College’s
endowment.		 management responses have been developed to
these risks. The project has its own rigorous
project risk management process for project
delivery. Univ North is to continue to be a standing
item for all Governing Body meetings and be
subject to ongoing risk management action.
At year end, the project moved through the next
stage gate towards tendering for a construction
contractor. Enhanced governance arrangements
were instituted in anticipation of the need for timely
decisions to ensure an efficient project. The
enhancements take the form of a new Project
Board under the aegis of a new Oversight
Committee, chaired by the Master. The Finance
Committee and Univ North Working Party continue
to interrogate aspects of the project in support.
High risk issues at period end include final
definition
of
an
acceptable
sustainability/decarbonisation brief; buildability
efficiencies
and
addressing
the
emerging
inflationary
pressures
in
the
market
on
construction cost.
Operational –
Staff
Pensions		 Failure to retain
top quality
academic staff as
regulatory
requirement to
recover Defined
Benefit pension
deficit risks
pension benefits.		 Liability arises from
higher employer’s
contribution and
potentially a need
to ‘make-up’ the
loss from reduced
pension benefits.
Industrial action by
academics.		 Strike action and staff discontent remain concerns
in the light of challenges with Universities
Superannuation Scheme. The College continues
to contribute to employer consultations initiated by
UUK and USS trustees in order to help find
acceptable structural solutions. The risk has not
gone away as the 2020 valuation has exacerbated
a number of issues. While employee engagement
continues, close monitoring is essential given its
limited influence on USS trustees. The inflationary
backdrop adds pressure to living costs for staff
and the risk of staff feeling worse off.
External –
Academic
Staff Reward
Package		 Recent steps by
HMRC remove
historic income
tax exemptions
and erode
academic staff
remuneration.		 Inability to recruit
and retain top talent
to the detriment of
the College’s
standing.		 Income tax exemptions incrementally removed
since 2017/18 culminated in April 2021 with the
removal of income tax exemption for subsidised
accommodation for most academic staff. While
employers should not typically intermediate
between employee and HMRC, the disruption of
the reward package is recognised and steps to
ensure attraction and retention in the future are
being considered, both for Junior Research
Fellows and more senior academic staff.
External -
COVID-19		 Inability to deliver
HE objects due to
COVID-19
pandemic,
through closure,
failure to protect
staff or collapse of		 Inadequate COVID-
19 provisioning
exacerbates the
impact of the
pandemic and		 Multiple management and operational responses
have mitigated against the impact of COVID-19 on
the College as it delivers its higher education
objects. Educational activities have adapted and
our social provisioning has been recognised by the
student body as being helpful. The College has
maintained a COVID-19 secure status throughout.

17

UNIVERSITY COLLEGE

Report of the Governing Body

Year ended 31 July 2021

Title Emerging Risk Potential Impact Management
investment
income.		 materially
constrains output.		 The College’s reserves have covered all costs but
a deficit from reduced income, including that from
its commercial tenants’ rental receipts, has
prompted
detailed
review
to
recommend
appropriate cost savings.
Operational –
Staff
Recruitment
and
Retention		 The post-COVID-
19 environment
shows acute staff
shortages in the
hospitality and
construction
sectors, with
inflationary wage
pressures.		 Staff shortages in
hospitality (kitchens
and catering
services) causes
unsustainable
burden on existing
staff and the need
to limit services.		 Targeted increments to advertised wages and
other increases have been implemented where
justified by evident shortage or flight risk.
Progressive recruitment initiatives and structuring
of posts to include flexible working and part-time
job structures. Wage inflation in one area spreads
to others, as wage differentials close, which
increases the challenge of closing the operating
deficit.
External –
Sustainability
challenge
and ESG
expectations		 Failure to meet
the increasing
external attention
to visible progress
against climate
and ESG
expectations
across all
activities gives
rise to
reputational risk.		 Control of the
agenda reduces
and credibility with
external
stakeholders
diminishes		 A multi-year carbon reduction programme has
been brought to closure and then re-energised by
the Premises Committee with a new 8-year
programme, beginning with a series of heat
decarbonisation initiatives. The exemplary Univ
North, which is a landscape-led, fabric-first high
efficiency development scheme, has been subject
to a further carbon study to see what more may be
possible and biodiversity studies are informing the
right actions to ensure that the environment is
supported. Social enhancement is now under the
direction of a new and dedicated Equality,
Diversity and Inclusion Committee

Investment policy, objectives and performance

The purpose of the investment policy is to generate additional value for the College to support greater delivery of its higher education and academic objects than might have been possible otherwise.

The College’s investment objectives are to:

The College’s investments are managed to meet these objectives through a diverse range of asset classes, with a view to produce total returns for the College with acceptable risk and return. Our investment policy is not based on exclusions of particular types of investments, but fully reflects the College's overall vigilance that its actions should be ethically sound, and that its actions reflect environmental and governance awareness. It has invested in ESG-compliant funds.

18

UNIVERSITY COLLEGE

Report of the Governing Body

Year ended 31 July 2021

The investment management, strategy and policy have the support of external advisers, under the guidance of the Investment Committee, and is also subject to a continuing review by an Investment Management Review Group, chaired by the Vice-Master. This strategic review will continue to run in 2021. In response to this review, and the extensive challenges of managing the material property portfolio, the College has appointed a Property Investment Manager and strengthened the Investment Committee with a further very experienced property specialist. Their focus will be to ensure that the returns from the property portfolio are maximised.

The College’s move to a total returns investment policy from its prior income policy is reflected in these full year accounts. The driver for this change is to afford greater flexibility over asset selection given the relative shortage of new, quality income assets in which to invest.

At the year end, the College’s long term investments, combining the securities and property investments, totalled £196.2m (2020: £188.6m). The overall total investment return was 11.6% (2020: negative 3.8%) over the year. Since the inception of the Investment Committee (31 July 2002), the annualised return to 31 July 2021 is 8.2% (to 2020:8.0% pa).

FUTURE PLANS

The College’s future plans as agreed by the Governing Body are:

19

UNIVERSITY COLLEGE

Report of the Governing Body

Year ended 31 July 2021

TRUSTEES’ RESPONSIBILITIES STATEMENT

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

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

The trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity, and of its net income or expenditure, for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations and the provisions of the College’s statutes. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Governing Body on 1 December 2021 and signed on its behalf by:

Right Honourable Baroness Valerie Amos CH PC

Master

20

Independent auditor's report to the trustees of University College

Year ended 31 July 2021

Independent Auditor’s Report to the Trustees of University College Oxford

Opinion

We have audited the financial statements of University College Oxford for the year ended 31 July 2021 which comprise the Statement of Financial Activities, Balance Sheet, 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 charity’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.

Overview of our audit approach

Materiality

In planning and performing our audit we applied the concept of materiality. An item is considered material if it could reasonably be expected to change the economic decisions of a user of the financial statements. We used the concept of materiality to both focus our testing and to evaluate the impact of misstatements identified.

21

Independent auditor's report to the trustees of University College

Year ended 31 July 2021

Based on our professional judgement, we determined overall materiality for the financial statements as a whole to be £5.3m (2020: £5.4m), based on 2% of gross assets. In addition, we determined a lower materiality level applicable for particular classes of transactions, account balances or disclosures. Due to reduced income levels, we have reduced the specific materiality to £300k which represents approximately 2% of income, and is applied to transactions and all account balances with the exception of fixed assets.

We use a different level of materiality (‘performance materiality’) to determine the extent of our testing for the audit of the financial statements. Performance materiality is set based on the audit materiality as adjusted for the judgements made as to the entity risk and our evaluation of the specific risk of each audit area having regard to the internal control environment. The performance materiality used for income was £214k whilst £4.4m was used for fixed assets. Performance materiality of £250k was used for expenditure and all other account balances.

Where considered appropriate performance materiality may be reduced to a lower level, such as, for related party transactions.

We agreed with the audit committee to report to it all identified errors in excess of £16k (2020: £12.5k). Errors below that threshold would also be reported to it if, in our opinion as auditor, disclosure was required on qualitative grounds.

Overview of the scope of our audit

Our audit was conducted at University College Oxford. Our audit approach was risk based and founded on a thorough understanding of the College’s activities, its environment and risk profile.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

This is not a complete list of all risks identified by our audit.

22

Independent auditor's report to the trustees of University College

Year ended 31 July 2021

Fund allocation (have donor • Completing detailed testing on voluntary income, restrictions on the use of the tracing a sample of transactions from source income been appropriately documentation through to the nominal ledger to captured in the financial ensure completeness of income. In addition, statements?). ensuring that restricted and endowment income is appropriately captured, recorded and disclosed Valuation (where income is owed in the financial statements. at year end, is it likely to be received or should it be Our testing did not identify any material provided against?). misstatements in the income recognised during the year. Our audit work included, but was not restricted to: Investment property • Obtained a breakdown of investment properties The College has a significant and reconciled to the trial balance property portfolio, with a carrying • We evaluated the competence of the external value of £75.7m, which is valuer which included consideration of their classified as Investment property independence, qualifications and expertise. for financial reporting purposes • Evaluating the valuations performed by and carried at fair value in professional valuers and comparing movements accordance with Financial in valuation to observable market data and wider Reporting Standard 102. market trends. • Discussing and challenging the assumptions The valuation of property required made by the valuers to understand the basis of significant judgement and their valuation for those properties outside of our range of expectations. estimates by management and the external valuer. Any input Our testing did not identify any material inaccuracies or unreasonable misstatements in the valuation of investment bases used in these judgements properties. could result in a material misstatement of the Statement of Financial Activities and Balance Sheet. There is also a risk that management may bias the significant judgements and estimates in respect of property valuations in order to influence property valuation.

Our audit procedures in relation to these matters were designed in the context of our audit opinion as a whole. They were not designed to enable us to express an opinion on these matters individually and we express no such opinion.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

23

Independent auditor's report to the trustees of University College

Year ended 31 July 2021

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement [set out on page 20] the trustees 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 trustees 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 trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

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

24

Independent auditor's report to the trustees of University College

Year ended 31 July 2021

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

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

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

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the College were Charity Commission legislation, General Data Protection Regulation (GDPR); anti-fraud, bribery and corruption legislation; health and safety legislation as well as employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included inquiries of management including their own identification and assessment of the risks of irregularities, sample testing on income and the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance. Our audit procedures to respond to revenue recognition risks included sample testing of income across the year to agree to supporting documentation and testing income either side of the year to ensure this has been correctly recognised.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

Other matters which we are required to address

Following the recommendation of the audit committee, we were appointed by the Governing Body on 8 June 2018 to audit the College financial statements for the year ended 31 July 2018 and subsequent financial periods.

The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the College and we remain independent of the College in conducting our audit. We confirm that we have not provided any nonaudit services to the College.

Our audit opinion is consistent with the additional report to the audit committee.

25

Independent auditor's report to the trustees of University College

Year ended 31 July 2021

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP

Statutory Auditor

Reading

6 December 2021

Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

26

UNIVERSITY COLLEGE

Statement of Accounting Policies

Year ended 31 July 2021

STATEMENT OF ACCOUNING POLICIES

1) Scope of the financial statements

The financial statements present the Statement of Financial Activities (“SOFA”) of the College, the College Balance Sheet and the College Statement of Cash Flows and its notes.

The accounts of the University College Old Members’ Trust (“OMT”) have not been consolidated because the College does not control its activities. The net assets of the OMT as at 31 July 2021 were £11.1m (2020: £10.2m). Its incoming resources for the year then ended were £121k (2020: £208k) and it contributed £160k (2020: £237k) to the College during the year.

2) Basis of accounting

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

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

The financial statements have been prepared on a going concern basis and on the historical cost basis, except for the measurement of investments and certain financial assets and liabilities at fair value with movements in value reported within the SOFA. The College has cash resources and has no further requirement for external funding in excess of current facilities. The Trustees have a high expectation that the College has adequate resources to continue in operational existence for the foreseeable future. In making their assessment the Trustees have considered the impact on the business of COVID-19 including the ability of the College to continue to operate as a College of the University of Oxford. They continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements.

The principal accounting policies adopted are set out below and have been applied consistently throughout the year.

3) Accounting judgements and estimation uncertainty

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the Governing Body to have the most significant effect on amounts recognised in the financial statements .

The College participates in the Universities Superannuation Scheme and the University of Oxford Staff Pension Scheme. These schemes are hybrid pension schemes, providing defined benefits (for members), as well as defined contribution benefits. The assets of the schemes are each held in a separate trusteeadministered fund. Because of the mutual nature of the schemes, the assets are not attributed to individual Colleges and scheme-wide contribution rates are set. The College is therefore exposed to actuarial risks associated with other Universities’ and Colleges’ 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 schemes as if they were wholly defined contribution schemes. As a result, the amount charged to the profit and loss account represents the contributions payable to each scheme. Since the College has entered into agreements (the Recovery Plans) that determine how each employer within the schemes will fund the overall deficit, the college recognises a liability for the contributions payable that arise from the agreements (to the extent that they relate to the deficit) and therefore an expense is recognised.

The College carries investment property at fair value in the balance sheet, with changes in fair value being recognised in the income and expenditure section of the SOFA. Independent valuations are obtained to

27

UNIVERSITY COLLEGE

Statement of Accounting Policies

Year ended 31 July 2021

determine fair value at the balance sheet date. Properties have been valued individually by independent valuers on the basis of fair value in accordance with the Royal Institution of Chartered Surveyors (“RICS”) Valuation – Global Standards 2020- “The Red Book”, incorporating the International Valuation Standards (“IVS”).

Before legacies are recognised in the financial statements, the Governing Body has to exercise judgement as to what constitutes sufficient evidence of entitlement to the bequest. Sufficient entitlement has been determined to exist once notification of payment has been received from the executor(s) of the estate or estate accounts are available which indicate there are sufficient funds in the estate after meeting liabilities for the bequest to be paid.

4) Income recognition

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

a) Income from fees , Office for Students (“OfS”) support and other charges for services and the use of premises.

Fees receivable, OfS support and charges for services and use of the premises including contributions received from restricted funds, are recognised in the period in which the related service is provided.

b) Income from donations, grants and legacies

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

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

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

funds.

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

c) Investment income

Interest income is recognised using the effective interest method except for interest receivable on bank deposit accounts and from government gilts which are on an accruals basis.

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

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

28

UNIVERSITY COLLEGE

Statement of Accounting Policies

Year ended 31 July 2021

Grants provided through the Coronavirus Job Retention Scheme are government grants. Income has been recognised under the accruals model whereby income is recognised on a systematic basis over the period in which the College recognises the related payroll costs for which the grant is intended to compensate.

5) Total Return Investment Accounting

As authorised by the College’s statutes, the College has adopted a ‘Total Return’ basis for the investment of its endowment. The carrying value of the preserved permanent capital, the trust for investment, and the amount of any unapplied total return available for expenditure were taken as the fair value of these funds as at 1 August 2002 together with the original gift value of all subsequent endowment additions received.

In choosing this date, the Governing Body sought to achieve an appropriate balance between the availability of relevant, historical information on changes in the College’s permanent endowment funds, bearing in mind changes in classifications which have taken place over the years, and the need for accurate analysis. It invests these funds without regard to the capital/income distinctions of standard trust law and with discretion to apply any part of the accumulated total return on the investment as income for spending each year. Until this power is exercised, the total return is accumulated as a component of the endowment known as the unapplied total return that can either be retained for investment or released to income at the discretion of the Governing Body.

The Governing Body determined that a 3.5% application rate of the investment return was appropriate given sustainable investment potential and College demand. In order to dampen the effects of the volatility in capital values the 3.5% should be applied to a 3 year rolling average of year end values with RPI indexation of prior years 2 and 3.

6) Expenditure

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

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

All expenditure including support costs and governance costs are allocated or apportioned to the applicable expenditure categories in the SOFA.

Support costs which includes governance costs (costs of complying with constitutional and statutory requirements) and other indirect costs are apportioned to expenditure categories in the SOFA based on the estimated amount attributable to that activity in the year, either by reference to staff time or the use made of the underlying assets, as appropriate. Irrecoverable VAT is included with the item of expenditure to which it relates.

7) Leases

Leases of assets that transfer substantially all the risks and rewards of ownership are classified as finance leases. The costs of the assets held under finance leases are included within fixed assets and depreciation is charged over the shorter of the lease term and the assets’ useful lives. Assets are assessed for impairment at each reporting date. The corresponding capital obligations under these leases are shown as liabilities and recognised at the lower of the fair value of the leased assets and the present value of the minimum lease payments. Lease payments are apportioned between capital repayment and finance charges in the SOFA so as to achieve a constant rate of interest on the remaining balance of the liability.

29

UNIVERSITY COLLEGE

Statement of Accounting Policies

Year ended 31 July 2021

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Rentals payable under operating leases are charged in the SOFA on a straight-line basis over the relevant lease terms. Any lease incentives are recognised over the lease term on a straight-line basis.

8) Tangible fixed assets

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

Under FRS 102, the College has elected to use the fair value of certain land holdings as a ‘deemed cost’. The valuation was undertaken by Carter Jonas, Chartered Surveyors, in accordance with the RICS Valuation – Professional Standards UK, revised in April 2015, for valuations for inclusion in financial statements prepared in accordance with revised UK Generally Accepted Accounting Principles (“GAAP”) procedures (Note 8).

Expenditure on the acquisition or enhancement of land and on the acquisition, construction and enhancement of buildings which is directly attributable to bringing the asset to its working condition for its intended use and amounting to more than £10,000 together with expenditure on equipment costing more than £10,000 is capitalised.

Where a part of a building or equipment is replaced and the costs capitalised, the carrying value of those parts replaced is derecognised and expensed in the SOFA.

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

9) Depreciation

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

Freehold properties, including major extensions 50 years
Leasehold properties 50 years or period of lease if shorter
Educational papers and documents 50 years
Fixtures, fittings and equipment 5 years

Freehold land is not depreciated. The costs of maintenance are charged in the SOFA in the period in which they are incurred.

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

10) Investments

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

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

Investments such as hedge funds and private equity funds which have no directly observable market value are initially measured at their cost and subsequently measured at their fair value at each reporting date without deduction of the estimated future selling costs. Fair value is based on the most recent valuations

30

UNIVERSITY COLLEGE

Statement of Accounting Policies

Year ended 31 July 2021

available from their respective fund managers. These use significant unobservable inputs in their valuation techniques.

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

Cash and cash equivalents are held within investment funds to provide liquid funds for investment opportunities and to provide adequate availability of funds in the event of major shocks to the world financial markets.

11) Other financial instruments

a) Cash and cash equivalents

Cash and cash equivalents include cash at banks and in hand and short-term deposits with a maturity date of three months or less.

b) Debtors and creditors

Debtors and creditors receivable or payable within one year of the reporting date are initially recognised at their transaction price and subsequently measured at amortised cost. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest and subsequently measured at amortised cost.

c) Bonds liability

On 28 April 2015 the College issued £40m of 3.068% unsecured bonds due April 2065. They are treated as a basic financial instrument. The bonds were initially measured at the proceeds of issue less all transaction costs directly attributable to the issue. After initial recognition the bonds are measured at amortised cost (Note 14).

On 30 March 2017 the College issued an unsecured Senior Note of £10m with an interest rate of 2.53% repayable in March 2057. It is treated as a basic financial instrument. The Senior Note was initially measured at the proceeds of issue less all transaction costs directly attributable to the issue. After initial recognition the Senior Note is measured at amortised cost (Note 14).

12) Stock

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

13) Foreign currencies

The functional and presentation currency of the College is the pound sterling.

Transactions denominated in foreign currencies during the year are translated into pounds sterling using the spot exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into pounds sterling at the rates applying at the reporting date. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at the exchange rates at the reporting date are recognised in the income and expenditure section of the SOFA within Support Costs.

31

UNIVERSITY COLLEGE

Statement of Accounting Policies

Year ended 31 July 2021

14) Fund accounting

The total funds of the College are allocated to unrestricted, restricted or endowment funds based on the terms set by the donors or set by the terms of an appeal. Endowment funds are further sub-divided into permanent and expendable.

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

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

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

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

15) Pension costs

The costs of retirement benefits provided to employees of the College through two multi-employer hybrid pension schemes (benefits are based on salaries as well as benefits based on contributions) are accounted for as if these were defined contribution schemes as information is not available to use defined benefit accounting in accordance with the requirements of FRS 102. The College's contributions to these schemes are recognised as a liability and an expense in the period in which the salaries to which the contributions relate are payable.

In addition, a liability is recognised at the balance sheet date for the discounted value of the expected future contribution payments under the agreements with these multi-employer schemes to fund the past service deficits.

32

University College Statement of Financial Activities For the year ended 31 July 2021

Notes
INCOME AND ENDOWMENTS FROM:
Charitable activities:
Teaching, research and residential
1
Donations and legacies
2
Investments
Investment income
3
Total return allocated to income
11
Other income
Coronavirus Job Retention Retention Scheme
Other
Total income
EXPENDITURE ON:
4
Charitable activities:
Teaching, research and residential
Generating funds:
Fundraising
Investment management costs
Interest payable on bond and senior note
Total Expenditure
Net Income before gains
Net gains/(loss) on investments
9, 10
Net Income/(expenditure)
Transfers between funds
15,11
Net movement in funds for the year
Fund balances brought forward
15
Funds carried forward at 31 July		 Unrestricted
Funds
£'000
5,262
2,881
1,406
-
316
1		 Restricted
Funds
£'000
282
4,640
69
4,962
-
-		 Endowed
Funds
£'000
-
863
3,411
(4,962)
-
-		 2021
Total
£'000
5,544
8,384
4,886
-
316
1		 2020
Total
£'000
5,779
9,930
5,742
-
425
25
9,866
7,834
403
80
1,480		 9,953
4,027
491
211
-		 (688)
-
-
1,182
-		 19,131
11,861
894
1,473
1,480		 21,901
11,810
909
1,355
1,480
9,797 4,729 1,182 15,708 15,554
69 5,224 (1,870) 3,423 6,347
1,662 202 11,197 13,061 (8,957)
1,731 5,426 9,327 16,484 (2,610)
- (7,597) 7,597 - -
1,731
70,569		 (2,171)
12,994		 16,924
125,489		 16,484
209,052		 (2,610)
211,662
72,300 10,823 142,413 225,536 209,052

33

University College Balance Sheet As at 31 July 2021 Charity No. 1141259

Notes
FIXED ASSETS
Tangible assets
8
Property investments
9
Other investments
10
Total Fixed Assets
CURRENT ASSETS
Stocks
Debtors
12
Cash at bank and in hand
Total Current Assets
LIABILITIES
Creditors: Amounts falling due within one year
13
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: falling due after more than one year
14
Defined benefit pension scheme liability
19
TOTAL NET ASSETS
FUNDS OF THE COLLEGE
Endowment funds
Restricted funds
Unrestricted funds
Designated funds
General funds
NET ASSETS BEFORE PENSION ASSET OR LIABILITY		 2021
£'000
61,259
75,699
120,528		 2020
£'000
60,930
73,223
115,334
257,486 249,487
63
6,254
15,556		 68
10,309
3,767
21,873
2,392		 14,144
2,894
19,481
276,967
49,398		 11,250
260,737
49,379
227,569
2,033		 211,358
2,306
225,536 209,052
142,413
10,823
68,450
3,850		 125,489
12,994
61,246
9,323
225,536 209,052

The financial statements were approved and authorised for issue by the Governing Body of University College on 1 December 2021.

Trustee: Right Honourable Baroness Valerie Amos CH PC

Trustee: Dr Andrew I Grant

34

University College Statement of Cash Flows For the year ended 31 July 2021

Notes
Net cash used in operating activities
23
Cash flows from investing activities
Dividends, interest and rents from investments
Investment management expenses
Proceeds from the sale of property, plant and equipment
Purchase of property, plant and equipment
Proceeds from sale of investments
Purchase of investments
Net cash provided by investing activities
Cash flows from financing activities
Interest payable on bond and senior note
Receipt of endowment donations
Net cash provided by financing activities
Change in cash and cash equivalents in the reporting period
25
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the reporting
period
Change in cash and cash equivalents due to exchange rate
movements		 2021
£'000
4,930		 2020
£'000
(4,658)
4,886
(1,473)
705
(1,746)
16,111
(8,182)		 5,742
(1,355)
-
(2,067)
29,980
(17,221)
10,301 15,079
(1,480)
863		 (1,480)
888
(617) (592)
14,614 9,829
25,383
(287)		 15,832
(278)
39,710 25,383

35

University College Notes to the financial statements For the year ended 31 July 2021

1 INCOME FROM CHARITABLE ACTIVITIES

Teaching, Research and Residential
Unrestricted funds
Tuition fees - UK and EU students
Tuition fees - Overseas students
Other OfS support
Other academic income
College residential income
Restricted funds
Other academic income
Total Teaching, Research and Residential Income		 2021
£'000
1,816
1,037
316
40
2,053
5,262
282
5,544		 2020
£'000
1,763
1,063
243
45
2,650
5,764
15
5,779

The above analysis includes £2,974k received from Oxford University from publicly accountable funds under the CFF Scheme (2020: £2,898k).

2
DONATIONS AND LEGACIES
Donations and Legacies
Unrestricted funds
Restricted funds
Endowed funds
3
INVESTMENT INCOME
Unrestricted funds
Agricultural rent
Commercial rent
Other property income
Equity dividends
Income from fixed interest stocks
Restricted funds
Agricultural rent
Commercial rent
Other property income
Equity dividends
Income from fixed interest stocks
Interest on fixed term deposits and cash
Endowed funds
Agricultural rent
Commercial rent
Other property income
Equity dividends
Income from fixed interest stocks
Interest on fixed term deposits and cash
Total Investment income		 2021
£'000
2,881
4,640
863
8,384
2021
£'000
28
1,027
57
280
14
1,406
1
50
3
14
1
-
69
129
2,065
315
197
643
62
3,411
4,886		 2020
£'000
7,428
1,614
888
9,930
2020
£'000
3
75
10
19
17
124
150
3,382
438
852
779
17
5,618
-
-
-
-
-
-
-
5,742

Following the adoption of a total return policy with effect from 1st August 2020 investment income is classified as arising within the endowment funds (as opposed to within the restricted funds associated with the respective endowments).

Charitable expenditure
Direct staff costs allocated to:
Teaching, research and residential
Other direct costs allocated to:
Teaching, research and residential
Support and governance costs allocated to:
Teaching, research and residential
Total charitable expenditure		 2021
£'000
5,042
5,191
1,628
11,861		 2020
£'000
5,151
5,317
1,342
11,810

4 ANALYSIS OF EXPENDITURE

36

University College Notes to the financial statements For the year ended 31 July 2021

4
ANALYSIS OF EXPENDITURE (CONTINUED)
Expenditure on generating funds
Direct staff costs allocated to:
Fundraising
Other direct costs allocated to:
Fundraising
Investment management costs
Interest payable on bond and senior note
Support and governance costs allocated to:
Fundraising
Investment management costs
Total expenditure on generating funds
Total expenditure		 2021
£'000
570
153
696
1,480
171
777
3,847
15,708		 2020
£'000
547
258
701
1,480
104
653
3,743
15,553

The 2020 resources expended of £15,554k represented £8,494k from unrestricted funds, £6,350k from restricted funds and £810k from endowed funds.

The teaching and research costs include College Contribution paid of £122k (2020:£103k).

5 ANALYSIS OF SUPPORT AND GOVERNANCE COSTS

Financial administration
Domestic administration
Human resources
IT
Depreciation
Profit on sale of fixed assets
Investment management
Other finance (income)/charges
Governance costs		 Generating
Funds
£'000
325
32
-
8
-
-
557
(37)
64
949		 Teaching
and
Research
£'000
520
288
110
150
868
(156)
-
(213)
62
1,629		 2021
Total
£'000
845
320
110
158
868
(156)
557
(250)
126
2,578
Financial administration
Domestic administration
Human resources
IT
Depreciation
Investment management
Other finance charges/(income)
Governance costs		 Generating
Funds
£'000
348
35
-
8
-
440
(135)
62
758		 Teaching
and
Research
£'000
563
313
112
152
902
-
(762)
61
1,341		 2020
Total
£'000
911
348
112
160
902
440
(897)
123
2,099

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

Governance costs comprise:
Auditor's remuneration - audit services
Legal and other fees on constitutional matters
Other governance costs		 2021
£'000
45
2
79
126		 2020
£'000
37
6
80
123

37

University College Notes to the financial statements For the year ended 31 July 2021

7

5 ANALYSIS OF SUPPORT AND GOVERNANCE COSTS (CONTINUED)

No amount has been included in governance costs for the direct employment costs or reimbursed expenses of the College's Teaching Fellows on the basis that these payments relate to the Fellows involvement in the College's charitable activities. Details of the remuneration of the Fellows and their reimbursed expenses are included as a separate note within these financial statements.

GRANTS AND AWARDS
During the year the College funded research awards and bursaries to students from its restricted and
unrestricted fund as follows:
Unrestricted funds
Grants to individuals:
Scholarships, prizes and grants
Bursaries and hardship awards
Total unrestricted
Restricted funds
Grants to individuals:
Scholarships, prizes and grants
Bursaries and hardship awards
Total restricted
Total grants and awards		 2021 2020
£'000
105
22
127
924
253
1,177
1,304		 £'000
61
21
82
976
203
1,179
1,261

6 GRANTS AND AWARDS

Within the total grants and awards figure of £1,304k above, is the cost to the College of the Oxford Bursary scheme of £91k (2020:£91k ). Students of this college received £70k (2020: £81k).

The above costs are included within the charitable expenditure on Teaching, Research and Residential.

The College has opted to take the exemption available for charity trusts registered in England and Wales to not disclose the names of grant recipients.

STAFF COSTS

The aggregate staff costs for the year were as follows.
Salaries and wages
Social security costs
Pension costs:
Defined benefit schemes
(Decrease)/Increase in Pension deficit recovery plan liability
Other benefits
The average number of employees of the College, excluding Trustees,
Tuition and research
College residential
Fundraising
Support
Total
The average number of employed College Trustees during the year was as follows.
University Lecturers
CUF Lecturers
Other teaching and research
Other
Total		 2021
£'000
5,312
479
962
(273)
201
6,681
2021
50
101
12
17
180
25
9
9
6
49		 2020
£'000
5,459
482
941
(922)
237
6,197
2020
46
111
11
17
185
23
9
4
7
43

38

University College Notes to the financial statements For the year ended 31 July 2021

9 PROPERTY INVESTMENTS

7 STAFF COSTS (CONTINUED)

The following information relates to the employees of the College excluding the College Trustees. Details of the remuneration and reimbursed expenses of the College Trustees is included as a separate note in these financial statements.

The number of employees (not covered in Note 18) during the year whose gross pay and benefits (excluding employer NI and pension contributions) fell within the following bands was:

£60,001-£70,000
£70,001-£80,001		 2021
1
1		 2020
2
1

The number of the above employees with retirement benefits accruing was as follows:

In defined benefits schemes 2 1

Cost or deemed cost
At start of year
Additions
Disposals
At end of year
Depreciation and impairment
At start of year
Depreciation charge for the year
Depreciation on disposals
At end of year
Net book value
At end of year
At start of year		 General
£'000
67,097
1,639
(616)
68,120
6,524
714
(67)
7,171
60,949
60,573
Land and
Buildings:		 Fixtures,
fittings and
equipment
£'000
2,450
107
-
2,557
2,093
154
-
2,247
310
357		 Total
£'000
69,547
1,746
(616)
70,677
8,617
868
(67)
9,418
61,259
60,930

The College has substantial long-held historic assets all of which are used in the course of the College’s teaching and research activities. These comprise listed buildings on the College site, together with their contents comprising works of art, ancient books and manuscripts and other treasured artefacts. Because of their age and, in many cases, unique nature, reliable historical cost information is not available for these assets and could not be obtained except at disproportionate expense. However, in the opinion of the Trustees the depreciated historical cost of these assets is now immaterial.

Valuation at start of year
Additions and improvements at cost
Revaluation gains/(losses) in the year
Valuation at end of year		 Agricultural
£'000
10,974
-
495
11,469		 Commercial
£'000
62,249
2,044
(63)
64,230		 2021
Total
£'000
73,223
2,044
432
75,699		 2020
Total
£'000
72,231
5,343
(4,351)
73,223

Estates land and property valuations as at 31 July 2021 have been made by the College's land agents, three independent firms of Chartered Surveyors: Cluttons, Carter Jonas and Stephenson & Son. The basis of valuation being market valuation i.e. the estimated amount for which the asset should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

Either an income valuation approach, capitalsing the anticipated future rental income at appropriate mutliplier(s) and/or the market approach adopting a capital value per unit of measurement based on market transactional evidence has been followed. The resulting values have been checked against recent market evidence derived from comparable transactions.

39

University College Notes to the financial statements For the year ended 31 July 2021

10 OTHER INVESTMENTS

All investments are held at fair value.

Valuation at start of year
New money invested
Amounts withdrawn
Increase in cash held by fund manager
Increase/(decrease) in value of investments
Investments at end of year
Investments comprise:
Equity investments
Global equity funds
Property funds
Fixed interest stocks
Alternative and other investments
Fixed term deposits and cash
Total investments		 Held outside
the UK
£'000
23,569
23,086
-
3,815
763
-
51,233		 Held in
the UK
£'000
10,658
6,371
8,610
16,577
2,925
24,154
69,295		 2021
Total
£'000
34,227
29,457
8,610
20,392
3,688
24,154
120,528		 Held outside
the UK
£'000
17,823
19,500
-
21,017
2,515
-
60,855		 2021
£'000
115,334
6,138
(16,111)
2,538
12,629
120,528
Held in
the UK
£'000
9,199
4,581
11,421
7,030
632
21,616
54,479		 2020
£'000
128,633
11,878
(29,980)
9,409
(4,606)
115,334
2020
Total
£'000
27,022
24,081
11,421
28,047
3,147
21,616
115,334

Investments held in property funds at 31 July 2020 included those with valuations reported on the basis of a material valuation uncertainty.

11 STATEMENT OF INVESTMENT TOTAL RETURN

The Trustees have adopted a duly authorised policy of total return accounting for the College investment returns with effect from 1 August 2020. The investment return to be applied as income is calculated as 3.5% of the average of the inflation adjusted year-end values of the relevant investments in each of the last 3 years. The preserved value of the invested endowment capital represents its fair value in 2003 together with all subsequent endowments valued at date of the gift.

At the beginning of the year:
Gift component of the permanent endowment
Unapplied total return
Expendable endowment
Total Endowments
Movements in the reporting period:
Gift of endowment funds
Recoupment of trust for investment
Allocation from trust for investment
Investment return: total investment income
Investment return: realised and unrealised gains and losses
Less: Investment management costs
Other transfers
Total
Unapplied total return allocated to income in the reporting period
Expendable endowments transferred to income
Net movements in reporting period
At end of the reporting period:
Gift component of the permanent endowment
Unapplied total return
Expendable endowment
Total Endowments		 Trust for
Investment
£'000
57,433
57,433
338
-
338
-
338
57,771
57,771
Pe		 Unapplied
Total
Return
£'000
38,101
38,101
-
-
2,078
5,890
(240)
7,243
14,972
(3,774)
(3,774)
11,198
-
49,299
49,299
rmanent Endowm		 Total
£'000
57,433
38,101
95,534
338
-
-
2,078
5,890
(240)
7,243
15,310
(3,774)
-
(3,774)
11,536
-
57,771
49,299
107,070
ent		 Expendable
Endowment
£'000
29,955
29,955
525
1,333
5,307
(942)
354
6,576
(1,188)
(1,188)
5,388
35,343
35,343		 Total
Endowments
£'000
57,433
38,101
29,955
125,489
863
-
-
3,411
11,197
(1,182)
7,597
21,886
(4,962)
-
(4,962)
16,924
57,771
49,299
35,343
142,413

40

University College Notes to the financial statements For the year ended 31 July 2021

12 DEBTORS

12
DEBTORS
Amounts falling due within one year:
Trade debtors
Amounts owed by College members
Loans repayable within one year
Prepayments and accrued income
Other debtors
Amounts falling due after more than one year:
Loans
13
CREDITORS: falling due within one year
Trade creditors
Taxation and social security
Accruals and deferred income
Other creditors
14
CREDITORS: falling due after more than one year
Bonds and Senior Note liabilities		 2021
£'000
1,110
252
849
3,866
177
-
6,254
2021
£'000
333
187
1,520
352
2,392
2021
£'000
49,398		 2020
£'000
832
184
85
8,287
171
750
10,309
2020
£'000
365
183
2,086
260
2,894
2020
£'000
49,379

On 28 April 2015 the College issued £40m of 3.068% unsecured bonds due April 2065 ("the bonds"). The bonds were issued at par. The proceeds of issue, less directly attributable transaction costs, amounted to £39.472m. Interest is payable on 28 April and 28 October each year. The bonds are listed on the London Stock Exchange. Unless previously redeemed, the bonds will be redeemed at their principal amount of £40m on 28 April 2065.

On 30 March 2017 the College issued an unsecured Senior Note of £10m with an interest rate of 2.53% and repayable on 30 March 2057 ("the note").The note was issued at par. The proceeds of issue, less directly attributable transaction costs, amounted to £9.836m. Interest is payable on the 30 March and 30 September each year. The note is not listed. Unless previously redeemed, the note will be redeemed at its principal amount of £10m on 30 March 2057.

Both the bond and senior note were initially measured at the proceeds of issue less all transaction costs directly attributable to their issues. After initial recognition, both are measured at amortised cost.

41

University College Notes to the financial statements For the year ended 31 July 2021

15 ANALYSIS OF MOVEMENTS ON FUNDS

ANALYSIS OF MOVEMENTS ON FUNDS
Endowment Funds - Permanent
Dr Radcliffe's Linton Estate (1714)
Oxford Radcliffe Scholarships (2013)
Univ 20/20 Strategy (2007)
J G Weir (1954)
Univ 20/20 Endowment (2007)
Radcliffe Travelling Fellow(1858)
John Freeston Trust (1592)
Maintenance Trust Fund (1932)
Sir E A Wallis Budge (1935)
Sanderson Modern History Fellow (2012)
Harold Salvesen Junior Fellow (1964)
Margaret Candfield English (1997)
McConnell Laing Classics (1999)
The Bouverie Trust (1979)
Tacchi Fellowship (2008)
Dunhill Foundation Trust (1988)
Goodman Fellowship Fund (1986)
Schrecker Slavonic Studies (2007)
O.M. Organic Chemistry Fellow (1990)
Scott JRF Fund (2001)
Swire Graduate History Scholarship (2012)
Oxford Anderson History Graduate Scholarship (2014)
Modern History Fund (1999)
Robert Mynors (1922)
Modern History Fund II (2001)
Rayne Physics (1980)
Oxford Burma Graduate Scholarship (2016)
Pye Fellowship (1998)
Levison Physics (1996)
45 Other Funds
Endowment Funds - Expendable
Univ. Capital Fund
Hoffman Law Fellowship
Oxford-Univ-Rhodes Graduate Scholarship (2017)
Ivana and Pavel Tykac Fellowship in Czech (2017)
42 Other Funds
Total Endowment Funds
Restricted Funds
Univ North Fund (2019)
Geary Hill Fund (1987)
Radcliffe Travelling Fellow (1858)
Univ 20/20 Strategy (2007)
124 Other Funds
Total Restricted Funds
Unrestricted Funds
General
Fixed Asset Designated Fund
Univ North Designated Fund
Major Repair Fund
Master's Stipend Fund
Overbrook Foundation
17 Other Funds
Total Unrestricted Funds
Total Funds		 At 1 August
2020
£'000
12,919
11,831
5,945
4,799
4,703
4,538
2,916
2,145
1,940
1,863
1,328
1,698
1,728
1,559
1,412
1,382
1,109
1,365
1,356
1,282
1,236
1,139
1,197
1,184
1,137
1,061
1,024
1,024
1,011
17,721
18,327
1,829
1,448
900
7,433
125,489
1,135
1,578
1,893
1,248
7,140
12,994
At 1 August
2020
£'000
3,767
55,273
5,203
1,294
1,210
1,001
2,821
70,569
209,052		 Incoming
resources
£'000
272
222
131
101
106
120
62
45
41
40
28
36
38
54
31
29
23
29
29
29
26
30
22
24
31
23
23
22
22
710
1,131
41
73
150
480
4,274
4,407
32
-
-
552
4,991
Incoming
resources
£'000
9,753
-
-
-
-
35
78
9,866
19,131		 Resources
expended
£'000
(33)
(27)
(16)
(12)
(13)
(15)
(8)
(5)
(5)
(5)
(3)
(4)
(5)
-
(4)
(3)
(3)
(3)
(3)
(4)
(3)
(4)
(3)
(3)
(4)
(3)
(3)
(3)
(3)
(40)
(920)
(5)
(5)
-
(12)
(1,182)
-
(36)
-
-
(4,693)
(4,729)
Resources
expended
£'000
(9,663)
-
-
-
-
(34)
(100)
(9,797)
(15,708)		 Transfers
£'000
(475)
(131)
1,402
(53)
637
1,891
(107)
(79)
29
(68)
391
(12)
(64)
(4)
(52)
(51)
233
(50)
(50)
-
(45)
23
(44)
(44)
(42)
(39)
(15)
(37)
(37)
362
(804)
(67)
(54)
(28)
119
2,635
-
-
(1,893)
(1,248)
506
(2,635)
Transfers
£'000
(1,669)
657
900
-
-
-
112
(0)
-		 Gains/
(losses)
£'000
825
670
396
306
322
361
186
137
124
120
84
109
116
-
95
88
71
88
87
89
79
82
65
76
94
68
56
65
65
966
4,604
123
121
-
459
11,197
-
98
-
-
104
202
Gains/
(losses)
£'000
1,662
-
-
-
-
-
-
1,662
13,061		 At 31 July
2021
£'000
13,508
12,565
7,858
5,141
5,755
6,895
3,049
2,243
2,129
1,950
1,828
1,827
1,813
1,609
1,482
1,445
1,433
1,429
1,419
1,396
1,293
1,270
1,237
1,237
1,216
1,110
1,085
1,071
1,058
19,719
22,338
1,921
1,583
1,022
8,479
142,413
5,542
1,672
-
-
3,609
10,823
At 31 July
2021
£'000
3,850
55,930
6,103
1,294
1,210
1,002
2,911
72,300
225,536

42

University College Notes to the financial statements For the year ended 31 July 2021

16 FUNDS OF THE COLLEGE DETAILS

The following is a summary of the origins and purposes of each of the Funds

Dr Radcliffe's Linton Estate (1714 ) fund established out of the legacy of Dr John Radcliffe in 1714 to support a variety of College activities. Oxford Radcliffe Scholarships (2013 ) fund established to endow graduate scholarships. Univ 20/20 Strategy (2007 ) established as part of the College's re-endowment campaign to provide support for the college's strategy. J G Weir (1954) fund established to provide for a fellowship for the purposes of teaching or research. Univ 20/20 Endowment (2007) established as part of the College's re-endowment campaign to provide a new permanent endowment fund. Radcliffe Travelling Fellow (1858) fund established to provide for medical research fellowships. John Freeston Trust (1592) fund established out of the legacy of John Freeston in 1592 to support the College and Normanton Grammar School. Maintenance Trust Fund (1932) provides for the income of the fund to be applied for or towards the upkeep, maintenance and repair of the College buildings and properties. Sir E A Wallis Budge (1935) fund established out of bequest of Sir Wallis Budge in 1935 to found a scholarship fellowship or lectureship in Egyptology. The Bouverie Trust (1979) fund established to support the study of English at the College. Sanderson Modern History Fellow (2012) fund established to endow a fellowship in Modern History. McConnell Laing Classics (1999) established as part of the College's 750th anniversary campaign to provide for a fellowship in Classics. Margaret Candfield English Fellowship established in 1997 to provide for a fellowship in English. Tacchi Fellowship Fund established in 2008 to provide for a fellowship at the College. Dunhill Foundation Trust (1988 ) fund established in 1988 to provide for a fellowship at the College in Physiology. Schrecker Slavonic Studies (2007) fund established in 2007 to provide support for Slavonic Studies at the College by endowing the Schrecker-Barbour Fellowship in Slavonic & Eastern European Studies. O.M. Organic Chemistry Fellow fund established in 1990 through the generosity of Old Members' of the College to provide a fellowship in Organic Chemistry. Harold Salvesen Junior Fellow (1964) fund established to endow a junior fellowship at the College. Swire Graduate History Scholarship (2012 ) fund for graduate scholarships. Scott JRF (2001 ) fund established to endow two junior research fellowships at the College. Modern History Fellowship (1999) fund established to support tutorial fellowship in History. Robert Mynors (1922 ) fund exists to support a fellowship in Social Sciences. Goodman Fellowship (1986) fund exists to support a fellowship in Jurisprudence. Rayne Physics (1980) fund exists to support physics. Modern History Fellowship II (2001) fund exists to support a fellowship in Modern History. Oxford Burma Graduate Scholarship (2016 ) fund for graduate scholarships. Pye Fellowship (1998 ) fund exists to support a fellowship in Mathematics. Oxford Anderson History Graduate Scholarship (2014) fund for graduate scholarships. Levison Physics (1996) fund for the support of physics.

Endowment Funds - Expendable:

Univ. Capital Fund is the consolidation of gifts and donations which can be used for the general purposes of the College. Oxford-Univ-Rhodes Graduate Scholarship (2017) fund for graduate scholarships.

Hoffman Law Fellowship fund established to support the costs of a fellow in Law.

Restricted Funds:

Geary Hill Fund (1987) established to provide a fund for the benefit of the undergraduates at the College. Radcliffe Travelling Fellow (1858) income fund established to provide for medical research fellowships. Univ North (2019) established to provide for the development of the North Oxford site .

Unrestricted Funds:

General fund represents the accumulated income from the College's activities and other sources that are available for the general purposes of the College. £4.1m has been earmarked to date for the redevelopment & expansion of the North Oxford College site.

Fixed Asset Designated fund represented by the fixed assets of the College and therefore are not available for expenditure on the College's general purposes. Transfers are made from the College Capital Fund to match unfunded fixed asset purchases. Univ North Designated Fund is designated for the costs of the North Oxford project.

Major Repair Fund is designated for major repairs to College Buildings. Master's Stipend Fund is designated for provision of the stipend of the Master of the College.

Overbrook Foundation fund is used at the discretion of the Master to support a range of educational and research projects.

17 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Property investments
Other investments
Net current assets
Long term liabilities
Tangible fixed assets
Property investments
Other investments
Net current assets
Long term liabilities		 Unrestricted
Funds
£'000
61,259
20,439
32,918
9,115
(51,431)
72,300
Unrestricted
Funds
£'000
60,930
-
695
11,250
(2,306)
70,569		 Restricted
Funds
£'000
-
457
10,366
-
10,823
Restricted
Funds
£'000
-
1,536
11,458
-
-
12,994		 Endowment
Funds
£'000
-
55,260
87,153
-
-
142,413
Endowment
Funds
£'000
-
71,687
103,181
-
(49,379)
125,489		 2021
Total
£'000
61,259
75,699
120,528
19,481
(51,431)
225,536
2020
Total
£'000
60,930
73,223
115,334
11,250
(51,685)
209,052

43

University College Notes to the financial statements For the year ended 31 July 2021

18 TRUSTEES' REMUNERATION

The trustees of the College comprise the Governing Body. The Governing Body is constituted from employees of the College who also fulfil teaching and research obligations or management duties.

No trustee receives any remuneration for acting as a trustee.

The remunerations listed below arise solely from their employed duties as tutorial fellows or managers of executive or pastoral activity for the benefit of the College and its members. The disclosures below should be read in this context.

Tutorial fellows are paid on the College's scale according to skill and experience, with most also being a joint appointment with the University of Oxford.

The College's Remuneration Committee makes authoritative recommendations on all matters involving trustees and comprises the Master, the Finance Bursar , the Senior Tutor, a Professorial Fellow and three external members and considers amendments to the College Scale and other stipends and allowances generally following national pay awards. It is appropriately reconstituted when the remuneration of member officers is considered from time to time, informed by competitive benchmarks and University salary scales.

Trustees of the College fall into the following categories:

The key management comprise 5 employees who are also trustees; The Master, Finance Bursar, Domestic Bursar, Senior Tutor and the Development Director who work full time on management or fundraising.

Some trustees who are Tutorial Fellows are eligible for College housing schemes. 6 trustees live in the College or College owned houses or flats.23 receive an allowance for housing which is disclosed within the salary figures below. 4 trustees live in houses owned jointly with the College. Some trustees receive additional allowances for additional work carried out as part time college officers, e.g. Dean. These amounts are included within the remuneration figures below.

The total remuneration and taxable benefits as shown below is £1,644k (2020:£1,552k).

The total of pension contributions is £294k (2020:£256k).

The following table sets out the remuneration received as employees of the College (and for the avoidance of doubt, not for acting as trustees):

Remuneration Received as Employees 2021 2020
Trustee Name & Position Remuneration Taxable Pension Total Total
Benefits Contributions
£ £ £ £ £
Dr W Allan - Tutorial Fellow 41,796
 1,733 10,587
 54,116
 59,134
Baroness V Amos - Master * 100,833
 3,699 21,276
 125,809
 -
Dr R Ashdowne - Assistant Senior Tutor 39,938 - 8,427
 48,365
 48,678
Dr M Barnes - Tutorial Fellow 21,667
 1,733 4,572
 27,972
 28,071
Dr A Bell - Senior Tutor 79,512 - 16,777
 96,289
 96,077
Professor M Benedikt - Supernumerary Fellow -
 693 -
 693
 756
Professor J Benesch - Tutorial Fellow 21,667
 1,386 4,572
 27,625
 28,514
Dr J Bryson - Tutorial Fellow 21,334
 7,696 4,501
 33,531
 12,898
Professor R Chang - Professorial Fellow -
 1,386 -
 1,386
 2,187
Professor T W Child - Tutorial Fellow 22,579 - 4,572
 27,151
 27,237
Dr R Chitnis - Tutorial Fellow 2,934 - 619
 3,553
 2,961
Dr S Collins - Tutorial Fellow 34,073
 1,386 7,014
 42,473
 40,144
Mr G J Cox - Development Director 83,705
 1,386 17,721
 102,812
 102,788
Sir I M Crewe - The Master ** -
 3,327 -
 3,327
 131,391
Dr K L Dorrington - Tutorial Fellow 17,334
 3,327 3,657
 24,318
 25,724
Dr M R Filip - Tutorial Fellow 26,132
 1,386 5,514
 33,032
 16,157
Dr M Galpin - Supernumerary Fellow 8,261
 693 1,632
 10,587
 10,652
Dr A I Grant - Finance Bursar 98,128
 1,386 -
 99,514
 94,968
Revd Dr A Gregory - Chaplain 58,031
 1,733 12,245
 72,008
 72,011
Professor N Halmi - Tutorial Fellow 25,044
 693 5,284
 31,021
 20,370
Professor J D Hamkins - Tutorial Fellow 58,803
 11,939 8,214
 78,957
 59,210
Dr L Hansen - Tutorial Fellow ** - - -
 -
 4,611
Professor J Hein - Professorial Fellow -
 693 -
 693
 756
Professor G M Henderson - Senior Research Fellow 2,754
 1,733 -
 4,487
 4,644
Dr C J Holmes - Tutorial Fellow 50,177
 1,733 10,587
 62,497
 62,521
Professor P D Howell - Tutorial Fellow 22,229
 1,386 4,572
 28,187
 28,362
Dr B Jackson - Tutorial Fellow 46,181
 1,733 9,744
 57,658
 57,692
Dr I Jacobs - Supernumerary Fellow -
 693 -
 693
 756
Professor P Jezzard - Professorial Fellow 12,582 - 978
 13,560
 5,601
Professor A Johnston - Tutorial Fellow 50,934
 1,733 10,747
 63,413
 62,301
Dr P Jones - Tutorial Fellow 14,791
 1,040 3,087
 18,918
 17,833
Dr L Kallet - Tutorial Fellow 38,931
 1,386 8,214
 48,532
 48,554
Professor A Ker - Tutorial Fellow 21,667
 693 4,572
 26,932
 26,937
Dr B Klin - Tutorial Fellow * - - -
 -
 -
Dr C Leaver - Supernumerary Fellow -
 693 -
 693
 756

44

University College Notes to the financial statements For the year ended 31 July 2021

18
TRUSTEES' REMUNERATION (CONTINUED)
Professor D Logan - Professorial Fellow
Professor S Mavroeidis - Tutorial Fellow
Dr K Milewicz - Tutorial Fellow
Dr N Moneke -Tuorial Fellow
Dr J E S Moshenska - Tutorial Fellow
Professor R J Nicholas - Tutorial Fellow
Dr N Nikolov - Tutorial Fellow
Professor K O’Brien - Professorial Fellow *
Dr C J Pears - Tutorial Fellow
Professor T Povey - Tutorial Fellow
Dr P Rebeschini - Tutorial Fellow
Professor R Rickaby - Professorial Fellow
Professor A W Roscoe - Senior Research Fellow
Professor J Rowbottom - Tutorial Fellow
Dr M Schentuleit - Supernumerary Fellow
Professor G Screaton - Professorial Fellow
Professor T Sharp - Tutorial Fellow
Professor A Smith - Professorial Fellow
Dr M D Smith - Tutorial Fellow
Dr S Smith - Tutorial Fellow
Dr N Talbot - Supernumerary Fellow
Professor TY Tan - Professorial Fellow
Professor C Terquem - Tutorial Fellow
Professor S C Tsang - Tutorial Fellow
Mrs A Unsworth - Domestic Bursar
Professor J F Wheater - Senior Research Fellow
Professor N Woods - Senior Research Fellow
Professor N Yeung - Tutorial Fellow
Professor O Zimmer - Tutorial Fellow		 Remuneration
£
-
9,987
21,667
19,861
53,482
17,651
17,101
-
23,297
21,699
33,118
-
2,678
43,523
2,934
-
21,667
-
24,421
10,421
-
-
33,241
12,578
75,849
-
2,754
22,090
50,177
1,542,215		 Benefits
£

1,733
1,733
693
378
1,733
1,663
1,386

-
1,733
1,386
12,979

-
1,386
1,733
-

-
1,733

1,733
693
693

-

1,386
1,733
-
1,733

1,386
1,040
1,733
693
102,189		 Contributions
£
-
2,107
4,572
4,191
10,587
3,691
3,279

-
4,572
4,572
2,303

-
565
9,497
619

-
4,572
-
5,153
2,199

-
-
7,014
2,199
16,318
-
581
4,661
10,587
293,526		 Total
£

1,733
13,827
26,932
24,430
65,802
23,006
21,766

-
29,602
27,657
48,400

-
4,630
54,753
3,553

-
27,972

1,733
30,267
13,313

-

1,386
41,988
14,777
93,900

1,386
4,375
28,484
61,457
1,937,930		 Total
£
1,890
8,230
26,937
-
62,521
23,649
21,286

-
29,718
27,844
23,898

-
4,748
54,190
3,254

-
28,071
-
30,265
13,843

-
-
42,438
15,064
93,751
1,512
4,462
27,915
61,387
1,808,124

** - leaver during the year or prior year and before approval of the financial statements - see pages 2-4

Other transactions with trustees

No trustee claimed expenses for any work performed in discharge of duties as a trustee. See also note 26 Related Party Transactions.

Key management remuneration

The total remuneration paid to key management was £576k (2020: £575k).

Key management are considered to be The Master, the Senior Tutor, the Finance Bursar, the Domestic Bursar and the Development Director.

19 PENSION SCHEMES

The College participates in the Universities Superannuation Scheme ("the USS") and the University of Oxford Staff Pension Scheme ("the OSPS") on behalf of its staff. Both schemes are contributory defined benefit schemes (i.e. they provide benefits based on length of service and pensionable salary) and until April 2016 were contracted out of the State Second Pension Scheme. The assets of USS and OSPS are each held in separate trustee-administered funds. The College has made available the National Employment Savings Trust for non-employees who are eligible under automatic enrolment regulations to pension benefits.

Both schemes are multi-employer schemes and the College is unable to identify its share of the underlying assets and liabilities of each scheme on a consistent and reasonable basis. Therefore, in accordance with the accounting standard FRS 102 paragraph 28.11, the College accounts for the schemes as if they were defined contribution schemes. As a result, the amount charged to the Statement of Financial Activities represents the contributions payable to the schemes in respect of the accounting period.

Both schemes have put in place agreements for additional contributions to fund their past service deficits. In accordance with the provisions of FRS 102 the College has recognised a liability for the future contributions that it estimates will be payable as a result of these deficit funding agreements - see below.

45

University College Notes to the financial statements For the year ended 31 July 2021

19 PENSION SCHEMES (CONTINUED) Actuarial Valuations

Qualified actuaries periodically value USS and OSPS defined benefits using the ‘projected unit method’, embracing a market value approach. The resulting levels of contribution take account of actuarial surpluses or deficits in each scheme. The financial assumptions were derived from market conditions prevailing at the valuation date. The results of the latest actuarial valuations and the assumptions which have the most significant effect on the results were:

USS OSPS
Date of valuation: 31/03/2018 31/03/2019
Date valuation results published: 16/09/2019 19/06/2020
Value of liabilities: £67.3bn £848m
Value of assets: £63.7bn £735m
Funding surplus / (deficit): (£3.6bn) (£113m)
Principal assumptions:
CPI - 0.73% to Gilts +0.5%-
· Discount rate CPI +2.52% a 2.25% b
· Rate of increase in salaries n/a RPI
Average RPI/CPI
· Rate of increase in pensions CPI c d
Assumed life expectancies on retirement at age 65:
· Males currently aged 65 24.4 yrs 21.7 yrs ?? Ch
· Females currently aged 65 25.9 yrs 24.4 yrs
· Males currently aged 45 26.3 yrs 23.0 yrs
· Females currently aged 45 27.7 yrs 25.8 yrs
Funding Ratios:
· Technical provisions basis 95% 87%
· Statutory Pension Protection Fund basis 76% 74%
· ‘Buy-out’ basis 56% 60%
21.1%
increasing to
23.7% on
Employer contribution rate (as % of pensionable salaries): 01/10/21 19%
Effective date of next valuation: 31/03/2020 31/03/2022

Years 1-10: CPI + 0.14% reducing linearly to CPI – 0.73% Years 11-20: CPI + 2.52% reducing linearly to CPI + 1.55% by year 21 Years 21 +: CPI + 1.55% b. The discount rate for the OSPS valuation was: Pre-retirement: Equal to the UK nominal gilt curve at the valuation date plus 2.25% p.a. at each term. Post-retirement: Equal to the UK nominal gilt curve at the valuation date plus 0.5% p.a. at each term.

c. Pensions increases (CPI) for the USS valuation were: Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves, less 1.3% p.a.

RPI inflation is derived from the geometric difference between the UK nominal gilt curve and the UK index-linked curve at the valuation date, less 0.3% p.a. at each term. CPI inflation is derived from the RPI inflation assumption, less the Scheme Actuary’s best estimate of the long-term difference between RPI and CPI inflation as applies from time to time (1.0% p.a. as at 31 March 2019).

For pension increases linked to inflation, a pension increase curve is constructed based on either the RPI, CPI or the average of the RPI and CPI inflation curves described above, adjusted to allow for the different maximum and minimum annual increases that apply, and the Scheme Actuary’s best estimate of inflation volatility as applies from time to time.

e. The USS and OSPS employer contribution rates include provisions for the cost of future accrual of defined benefits, deficit contributions, administrative expenses and defined contributions.

46

University College Notes to the financial statements For the year ended 31 July 2021

19 PENSION SCHEMES (CONTINUED) Universities Superannuation Scheme

The pension charge for the year includes £664k (2020: (£233)k) in relation to the USS. This represents contributions of £637k (2020: £576k) payable to the USS as adjusted by the increase in the deficit funding liability between the opening and closing balance sheet dates of £27k (2020: £809k decrease).

A provision of £1,334k has been made at 31 July 2021 (2020: £1,307k) for the present value of the estimated future deficit funding element of the contributions payable under this agreement. In determining the level of this provision it has been assumed that the College will have an increase in membership of 2% in year 1 and 2% thereafter. It has been assumed that relevant earnings of these employees will increase by 1.5% in year 1, 1.5% in year 2, 4% in year 3, and 1.5% thereafter. An average discount rate of 0.87% over the period to 31 March 2028 has been used.

See Note 29 regarding the completion of the 2020 actuarial valuation since the 31st July 2021.

Oxford Staff Pension Scheme

The pension charge for the year includes £25k (2020: £252k) in relation to the OSPS. This represents contributions of £325k (2020: £365k) payable to the OSPS as adjusted by the decrease in the deficit funding liability between the opening and closing balance sheet dates of £300k (2020 £113k decrease).

A provision of £699k has been made at 31 July 2021 (2020:£999k) for the present value of the estimated future deficit funding element of the contributions payable under this agreement. In determining the level of this provision it has been assumed that the membership in the scheme will increase by 1% in year 1, 2 & 3, 5% in year 4 & 1% thereafter. It has been assumed that relevant earnings of these employees will increase by 3% in year 1, and by 3% thereafter. An average discount rate of 0.87% over the period to 30 June 2027 has been used.

20 TAXATION

The College is able to take advantage of the tax exemptions available to charities from taxation in respect of income and capital gains received to the extent that such income and gains are applied to exclusively charitable purposes.

21 FINANCIAL INSTRUMENTS

The financial statements include the following in respect of their financial instruments:

Investments
Trade debtors
Amounts owed by College members
Loans repayable within one year
Accrued income
Other debtors
Cash and cash equivalents
Trade creditors
Taxation and social security
Accruals
Other creditors
Long term creditors
Financial assets at fair value through statement of
financial activities:
Financial assets that are debt instruments measured at
amortised cost:
Financial liabilities that are debt instruments measured at
amortised cost:		 2021
£'000
120,528
1,110
252
849
3,427
-
15,556
21,194
333
187
832
352
49,398
51,102		 2020
£'000
115,334
832
184
85
6,943
750
3,767
12,561
365
183
1,371
260
49,379
51,558

22 FINANCIAL INSTRUMENTS RISK

The College is exposed to various risks in relation to financial instruments. The College's financial assets and liabilities by category are summarised in Note 21. The main types of risk are market risk, credit risk, liquidity risk and interest rate risk.

Market Risk Analysis

The College is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk, and certain other price risks, which result both from its operating and investing activities.

Foreign Currency Sensitivity

Most of the College's operating transactions are carried out in pounds sterling. Exposure to currency exchange rates arise from the College's purchases and sales of investments denominated in foreign currencies. To mitigate the College's exposure to foreign currency risk the Investment committee monitor regularly and review the currency allocations and recommend rebalancing. Forward exchange contracts are only entered into for significant long-term foreign currency exposures that are not expected to be offset by other same-currency transactions. There were no forward exchange contracts at 31 July 2021 or 31 July 2020.

Foreign currency denominated financial assets and liabilities which expose the College to currency risk are disclosed below. The amounts shown are those reported to the Investment Committee translated into pounds sterling at the closing rate.

47

University College Notes to the financial statements For the year ended 31 July 2021

22 FINANCIAL INSTRUMENTS RISK (CONTINUED)

At 31 July the College's investment assets had the following principal exposures

Pounds sterling
US dollar
Japanese Yen
Other currencies
31 July 2021
Financial assets
Financial liabilities
Total Exposure
Impact on the net movement of funds for the year 2020/21
10% US dollar appreciation
10% Yen appreciation
31 July 2020
Financial assets
Financial liabilities
Total Exposure
Impact on the net movement of funds for the year 2019/20
10% US dollar appreciation
10% Euro appreciation		 USD
Yen
£'000
£'000
37,492
8,914
-
-		 2021
2020
61.1%
57.7%
27.9%
29.0%
6.6%
6.5%
4.4%
6.8%
100.0%
100.0%
Other
Total
£'000
£'000
5,905
52,311

-
-
37,492
8,914		 5,905
52,311
USD
Yen
£'000
£'000
34,502
7,781
-
-		 £'000
3,749
891
Other
Total
£'000
£'000
8,059
50,342

-
-
34,502
7,781		 8,059
50,342
£'000
3,450
778

Risk Management policies and procedures

Currency positions in the investment portfolio are reviewed regularly by the Finance Bursar and monitored by the Investment Committee. Currency exposure is managed within the asset allocation strategy.

Credit risk

Credit risk is the risk that the College would incur a financial loss if a counterparty were to fail to discharge its obligations to the College.

Credit risk exposure The College is exposed to credit risk in respect of its financial assets held with various counterparties. The following table details the maximum exposure to credit risk at 31 July:

Equity investments
Property funds
Fixed interest stocks
Alternative and other investments
Cash & Cash equivalents
Trade and other receivables
Total financial assets exposed to credit risk		 2021
2020
£'000
£'000
63,684
51,103
8,610
11,421
20,392
28,047
3,688
3,147
39,710
25,383
6,254
10,309
142,338
129,410

Risk management policies and procedures

The College aims to minimise its counterparty credit risk exposure by monitoring the size of its credit exposure to, and the creditworthiness of, counterparties, including setting exposure limits and maturities within its investment portfolio primarily. The creditworthiness and financial strength of trading customers e.g. new tenants, is assessed at inception. These considerations are acute in the context of the Covid-19 pandemic. All new students have to provide a financial guarantee statement indicating the availability of funds to meet fees and living costs. Counterparties for investment assets and bank accounts are selected based on their financial ratings, regulatory environments and specific circumstances.

Liquidity Risk

Liquidity risk is the risk that the College will encounter difficulties raising cash to meet its obligations when they fall due. Obligations are associated with financial liabilities and capital commitments.

48

University College Notes to the financial statements For the year ended 31 July 2021

22 FINANCIAL INSTRUMENTS RISK (CONTINUED)

The majority of the investment assets by the College are investments in quoted securities and in funds that are readily realisable. The College regularly monitors its liabilities and commitments and ensures it holds appropriate levels of liquid assets.

The following table summarise the maturity of the College's undiscounted contractual payments

As at 31 July 2021
Bonds and Senior Note liabilities
Other creditors
Total at 31 July 2021
As at 31 July 2020
Bonds and Senior Note liabilities
Other creditors
Total at 31 July 2020		 Total
£'000
£'000
£'000
£'000
£'000
740
740
5,921
105,704
113,105
439
-
-
-
439
Between three
months and a
year
Three
months or
less
Between one
and five years
More than five
years
1,179
740
5,921
105,704
113,544
740
740
5,921
107,184
114,585
823
-
-
-
823
1,563
740
5,921
107,184
115,408

Risk management policies and procedures

Interest rate risk

Interest rate risk arises from the risk that the value of an asset or liability will fluctuate due to changes in market interest rates (i.e. for fixed interest rate assets or liabilities) or that future cash flows will fluctuate due to changes in interest rates (i.e. for floating rate assets or liabilities).

Interest rate exposure and sensitivity

As stated in the accounting policies, the College's bond liabilities are measured at amortised cost. The College has only minimal amounts held on variable rate.

Interest rate risk is focused on the potential impact of interest rate changes on the fair value of investments in fixed interest securities.

At 31 July 2021 the College held £20.4m (2020: £28.0m) of government bonds with fixed interest.

Risk management policies and procedures

The College takes into account the possible effects of a change in interest rates on fair value and cash flows of the interest-bearing financial assets and liabilities when making investment decisions.

Other price risk

Price risk is the risk that the value of an asset or liability will fluctuate due to changes in market price (other than those arising from currency risk or interest rate risk), caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.

This is a key risk for the College because of the significance of the endowment funds in supporting the academic activities of the College and the requirement to maintain their value in real terms into the future.

At 31 July 2021 total endowment funds were £142.4m (2020: £125.5m) - see notes 15 & 16 for further detail on the endowment funds.

Concentration of exposure to other price risk

As the majority of the College's investment assets are carried at fair value, all changes in market conditions will directly affect the College's net assets. The split of investment assets at the reporting date is shown in notes 9 & 10.

Fair Value

Debtors and current liabilities are stated in the balance sheet at amortised cost which are not materially different from their fair values. The bond liabilities are also measured at amortised cost which is not materially different from fair value. The amortised cost of the other financial assets and liabilities shown on the balance sheet are the same as the fair value.

49

University College Notes to the financial statements For the year ended 31 July 2021

23 RECONCILIATION OF NET INCOMING RESOURCES TO

NET CASH FLOW FROM OPERATIONS
Net Income
Elimination of non-operating cash flows:
Investment income
(Gains) /Loss on investments
Endowment donations
Bonds & Senior Note Interest payable
Investment management costs
Other exchange loss
Depreciation
Surplus on sale of fixed assets
Decrease in stock
Decrease/(Increase) in debtors
Decrease in creditors
Decrease in pension scheme liability
Net cash used in operating activities		 2021
£'000
16,484
(4,886)
(13,061)
(863)
1,480
1,473
287
868
(156)
5
4,055
(483)
(273)
4,930		 2020
£'000
(2,610)
(5,742)
8,957
(888)
1,480
1,355
278
902
-
18
(6,978)
(508)
(922)
(4,658)

24 ANALYSIS OF CHANGES IN NET DEBT

Cash at bank and in hand
Other investments cash
Loans Falling due after more than one year
Total
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Other investments cash
Total cash and cash equivalents		 At start of year
£'000
3,767
21,616
(49,379)
(23,996)		 Cash flows
£'000
12,076
2,538
-
14,614		 Foreign
Exchange
Movements
£'000
(287)
-

-
(287)		 Other non-cash
changes
£'000
-

-

(19)
(19)
2021
£'000
15,556
24,154
39,710		 At end of year
£'000

15,556

24,154
(49,398)
(9,688)
2020
£'000
3,767
21,616
25,383

25 ANALYSIS OF CASH AND CASH EQUIVALENTS

26 CAPITAL COMMITMENTS

There are no capital committments that require disclosure.

27 COMMITMENTS UNDER OPERATING LEASES

The College earns rental income by leasing its properties to tenants under non-cancellable operating leases. Leases in which substantially all risks and rewards of ownership are retained by another party, the lessor, are classified as operating leases. Payments, including prepayments, made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straightline basis over the period of the lease.

At the balance sheet date the College had contracted with tenants to receive the following future minimum lease payments:

Not later than 1 year
Later than 1 year and not later than 5 years
later than 5 years		 2021
£'000
3,478
8,613
54,796
66,887		 2020
£'000
3,594
9,755
56,923
70,272

50

University College Notes to the financial statements For the year ended 31 July 2021

28 RELATED PARTY TRANSACTIONS

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

Members of the Governing Body, who are the trustees of the College and related parties as defined by FRS 102, receive remuneration and facilities as employees of the College. Details of these payments and reimbursed expenses as trustees are disclosed separately in these financial statements.

The College has properties with the following net book values owned jointly with trustees under joint equity ownership agreements between the trustee and the College.

Professor N Yeung
Associate Professor B Jackson
Professor A Johnston
Professor J Rowbottom -
Associate Professor N Nikolov
Associate Professor P Jones -
Total net book value of properties owned jointly with trustees		 2021
£'000
104
266
164
-
212
-
746		 2020
£'000
107
273
169
223
217
325
1,314

*- the College's interest in the property was acquired during the year by the Fellow at a valuation established by an independent valuer.

All joint equity properties are subject to sale on the departure of the trustee from the College.

During the year a total of £nil (2020: £3,014) was paid to children of Trustees for work done as casual workers.

During the 2018-19 year, the College entered into a tenancy-at-will with The Blockhouse Technology Limited ("TBTL") to permit its occupation of 2 Staverton Road, a property in North Oxford that is owned by the College. TBTL’s rescindable tenancy in the property may also afford space for the College's newly established research activities into Blockchain technology to operate alongside the commercial activities of TBTL. Professor A W Roscoe, a trustee of the College, is a co-founder of, and a significant shareholder in, TBTL. The tenancy-at-will was established at arm’s length, and Professor Roscoe was recused from the College’s decision making in this matter. The College is also a shareholder in TBTL.

29 CONTINGENT LIABILITIES

The College had no contingent liabilities at 31 July 2021 (2020: £nil).

30 POST BALANCE SHEET EVENTS

Since the year end, following the completion of the 2020 actuarial valuation , a new dual rate schedule of contributions has been agreed with an effective date of 1 October 2021. Recalculating the USS provision on the basis of these contributions would result in an increased obligation to fund the deficit of £4,096k, an increase of £2,762k. A further change to deficit recovery contributions will become applicable under the 2020 valuation if the Joint Negotiating Committee recommended deed on benefit changes has not been executed by 28 February 2022. In this scenario, higher deficit recovery contributions will commence from 1 October 2022 at 3% and then increase every 6 months until they reach 20% at 1 October 2025. They remain at this level until 31 July 2032. Negotiations continue and an increase to this level is considered remote. If the Schedule of Contributions remains unchanged, the College's Financial Statements for the year ended 31 July 2022 will reflect these changes to the provision, subject to any other changes in financial and operational assumptions.

51

University College Notes to the financial statements For the year ended 31 July 2021

31 ADDITIONAL PRIOR YEAR COMPARATIVES

ADDITIONAL PRIOR YEAR COMPARATIVES
Statement of Financial Activities
INCOME AND ENDOWMENTS FROM:
Charitable activities:
Teaching, research and residential
Donations and legacies
Investments
Investment income
Other income
Coronavirus Job Retention Retention Scheme
Other
Total income
EXPENDITURE ON:
Charitable activities:
Teaching, research and residential
Generating funds:
Fundraising
Investment management costs
Interest payable on bond and senior note
Total Expenditure
Net Income before gains
Net gains on investments
Net Income
Transfers between funds
Net movement in funds for the year
Fund balances brought forward
Funds carried forward at 31 July		 Unrestricted
Funds
£'000
5,764
7,428
124
425
25
13,766
6,093
681
140
1,480
8,394
5,372
-
5,372
270
5,642
64,927
70,569		 Restricted
Funds
£'000
15
1,614
5,618
-
-
7,247
5,602
150
598
-
6,350
897
(242)
655
25
680
12,314
12,994		 Endowed
Funds
£'000
-
888
-
-
888
115
78
617
-
810
78
(8,715)
(8,637)
(295)
(8,932)
134,421
125,489		 2020
Total
£'000
5,779
9,930
5,742
425
25
21,901
11,810
910
1,355
1,480
15,554
-
6,347
-
(8,957)
-
(2,610)
-
-
-
(2,610)
211,662
209,052

b) Property Investments

Valuation at start of year
Additions and improvements at cost
Revaluation losses in the year
Valuation at end of year		 Agricultural
£'000
8,711
2,261
2
10,974		 Commercial
£'000
63,520
3,082
(4,353)
62,249		 2020
Total
£'000
72,231
5,343
(4,351)
73,223

52

University College Notes to the financial statements For the year ended 31 July 2021

31 ADDITIONAL PRIOR YEAR COMPARATIVES (CONTINUED)

c) Analysis of Movement on Funds

Endowment Funds - Permanent
Dr Radcliffe's Linton Estate (1714)
Oxford Radcliffe Scholarships (2013)
Univ 20/20 Strategy (2007)
J G Weir (1954)
Univ 20/20 Endowment (2007)
Radcliffe Travelling Fellow(1858)
John Freeston Trust (1592)
Maintenance Trust Fund (1932)
Sir E A Wallis Budge (1935)
Sanderson Modern History Fellow (2012)
McConnell Laing Classics (1999)
Margaret Candfield English (1997)
The Bouverie Trust (1979)
Tacchi Fellowship (2008)
Dunhill Foundation Trust (1988)
Schrecker Slavonic Studies (2007)
O.M. Organic Chemistry Fellow (1990)
Harold Salvesen Junior Fellow (1964)
Scott JRF Fund (2001)
Swire Graduate History Scholarship (2012)
Modern History Fund (1999)
Robert Mynors (1922)
Goodman Fellowship Fund (1986)
Modern History Fund II (2001)
Rayne Physics (1980)
Oxford Burma Graduate Scholarship (2016)
Pye Fellowship (1998)
Oxford Anderson History Graduate Scholarship (2014)
Levison Physics (1996)
Beaverbrook Fund (1979)
44 Other Funds
Endowment Funds - Expendable
Univ. Capital Fund
Hoffman Law Fellowship
Oxford-Univ-Rhodes Graduate Scholarship (2017)
42 Other Funds
Total Endowment Funds
Analysis of Movement on Funds(Continued)
Restricted Funds
Geary Hill Fund (1987)
Radcliffe Travelling Fellow (1858)
Univ 20/20 Strategy (2007)
Univ North Fund (2019)
124 Other Funds
Total Restricted Funds
Unrestricted Funds
General
Fixed Asset Designated Fund
Univ North Designated Fund
Major Repair Fund
Master's Stipend Fund
Overbrook Foundation
17 Other Funds
Total Unrestricted Funds
Total Funds		 At 1 August
2019
£'000
13,524
12,323
6,206
5,024
4,920
4,751
3,053
2,246
2,031
1,951
1,813
1,778
1,559
1,482
1,446
1,429
1,420
1,390
1,347
1,294
1,244
1,239
1,161
1,205
1,111
1,067
1,072
1,199
1,059
1,025
17,350
23,240
1,919
1,558
7,985
134,421
At 1 August
2019
£'000
1,650
1,835
1,163
186
7,480
12,314
3,681
54,709
500
1,294
1,210
1,009
2,524
64,927
211,662		 Incoming
resources
£'000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
45
5
-
57
781
888
Incoming
resources
£'000
39
116
143
949
6,000
7,247
13,640
-
-
-
51
41
34
13,766
21,901		 Resources
expended
£'000
(36)
(29)
(15)
(13)
(13)
(13)
(8)
(6)
(5)
(5)
(5)
(5)
-
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(3)
(3)
(3)
(4)
(3)
(3)
(3)
(3)
(3)
-
(39)
(414)
(5)
(83)
(60)
(810)
Resources
expended
£'000
(43)
(9)
(58)
-
(6,240)
(6,350)
(8,287)
-
-
-
(51)
(49)
(7)
(8,394)
(15,554)		 Transfers
£'000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(270)
-
-
(25)
(295)
Transfers
£'000
-
-
-
-
25
25
(5,267)
564
4,703
-
-
-
270
270
-		 Gains/
(losses)
£'000
(569)
(463)
(246)
(212)
(204)
(200)
(129)
(95)
(86)
(83)
(80)
(75)
-
(66)
(60)
(60)
(60)
(58)
(61)
(54)
(44)
(52)
(49)
(64)
(47)
(40)
(45)
(57)
(45)
-
(660)
(4,234)
(85)
(84)
(348)
(8,715)
Gains/
(losses)
£'000
(68)
(49)
-
-
(125)
(242)
-
-
-
-
-
-
-
-
(8,957)		 At 31 July
2020
£'000
12,919
11,831
5,945
4,799
4,703
4,538
2,916
2,145
1,940
1,863
1,728
1,698
1,559
1,412
1,382
1,365
1,356
1,328
1,282
1,236
1,197
1,184
1,109
1,137
1,061
1,024
1,024
1,139
1,011
1,025
16,696
18,327
1,829
1,448
8,333
125,489
At 31 July
2020
£'000
1,578
1,893
1,248
1,135
7,140
12,994
3,767
55,273
5,203
1,294
1,210
1,001
2,821
70,569
209,052

53