Linacre College Annual Report and Financial Statements Year ended 31 July 2022
Annual Report and Financial Statements Contents
## LINACRE COLLEGE
||Page|
|---|---|
|Governing Body, Officers and Advisers|2|
|Principal’s Review and Report of the Governing Body|6|
|Auditor’s Report|18|
|Statement of Accounting Policies|21|
|Statement of Financial Activities|25|
|Balance Sheet|26|
|Statement of Cash Flows|27|
|Notes to the Financial Statements|28|
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Governing Body, Officers and Advisers Year ended 31 July 2022
## LINACRE COLLEGE
## MEMBERS OF THE GOVERNING BODY (1/8/21 to 31/7/22)
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:
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1 2 3 4 5 6
Ackermann, Dr Silke
Alexander, Prof Jocelyn
Allen, Prof Myles
Assender, Dr Hazel
GB Secretary UNTIL
Bailey, Mr Simon 31/12/21
Barker, Mr Simon
Brown, Dr Nick
Buczacki, Prof Simon
Burton, Dr Rebecca Mat Leave HT and TT MT
only
Caplin, Prof Richard
Castell, Prof Martin
Dudarev, Dr Sergei
Ewart, Dr Elizabeth Mat Leave HT and TT MT
only
Gibney, Prof Matthew
Hall, Prof Jim
Hector, Prof Andrew
Hoverd, Dr Jane
Illiffe, Prof Robert
Ingram, Dr Jenni
Kan, Dr Man Yee
Khatiwala Prof Samar Sabbatical MT and HT TT
only
Kirkland, Prof Angus
Kleanthous, Prof Colin
Kringelbach, Prof Morten Wef 1/11/21
La Thangue, Prof Nick
MacKay, Prof John
Mandeville, Mr Pete
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## LINACRE COLLEGE
Governing Body, Officers and Advisers Year ended 31 July 2022
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Marginson, Dr Simon
Mills, Dr Ian
Morton, Dr Christopher
Mustafa, Dr Asma
Obersteiner, Dr Michael
O’Donoghue, Prof Heather [Retired 30/9/21 ]
Pollard, Prof Mark
Preston, Dr Gail
Rival, Dr Laura
Rose, Dr Heath
Seale, Mr David
Sarkar, Prof Subir Retired 30/9/21
Stein, Prof Alan
Travis, Prof Simon
Van Broekhoven, Dr Laura
Wetzer, Mr Thom
Whiteley, Dr Jonathan
Ye, Dr Hua Cathy
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One Fellow Trustee is not disclosed for professional reasons.
Key:
- 1 – Finance and Investments Committee
- 2 – Academic Committee
- 3 – Remuneration Committee
- 4 – Domestic Committee
- 5 – Governance Audit and Risk Committee
- 6 – Welfare and Equality Committee
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## LINACRE COLLEGE
Governing Body, Officers and Advisers Year ended 31 July 2022
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1 2 3 4 5 6
Common Room President:
Sameer Bhat April 2021 to March 2022
Jacob Brandler April 2022 to March 2023
Junior Research Fellow:
Laura McKillop January 2021 to September 2021
Liam Shaw March 2022 to April 2022
Katarzyna Kapitan
May 2022 to Sept 2023
Common Room Treasurer:
Carlo Alfano April 2021 to March 2023
Common Room Secretary:
Aksel Saukko-Paavola April 2021 to March 2022
Rhiannon Ogden-Jones
April 2022 to March 2023
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During the year the activities of the Governing Body were carried out through six main committees. The current membership of these committees is shown above for each Trustee.
In addition to Fellow, including JRF, and Student members, key staff serve on relevant committees and there are nominated external independent members of the Governance Audit and Risk Committee and Remuneration Committee.
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Governing Body, Officers and Advisers Year ended 31 July 2022
## LINACRE COLLEGE
## COLLEGE SENIOR STAFF
The senior staff of the College to whom day to day management is delegated are as follows.
|Leimu-Brown, Dr Nick|Principal|
|---|---|
|Pollard, Prof Mark|Vice Principal|
|Seale, Mr David|Finance Bursar|
|Hoverd, Dr Jane|Senior Tutor|
|Barker, Mr Simon|Domestic Bursar|
## COLLEGE ADVISERS
## Investment managers
Oxford University Endowment Management, King Charles House, Park End Street, Oxford OX1 1JD Royal London Asset Management, 55 Gracechurch Street, London EC3V 0RL
## Auditor
Critchleys Audit LLP, Beaver House, 23 - 38 Hythe Bridge Street, Oxford, OX1 2EP
## Principal Bankers
Barclays Corporate, Wytham Court, 11 West Way, Oxford, OX2 0JB
## Solicitors
Pennington Manches LLP, 9400 Oxford Business Park, Garsington, Oxford OX4 2HN Mills & Reeve, Botanic House, 100 Hills Road, Cambridge, CB2 1PH
## Employment Advisors
Peninsula Business Services, The Peninsula, Victoria Place, Manchester M4 4FB
## Health and Safety Consultants
Peninsula Business Services, The Peninsula, Victoria Place, Manchester M4 4FB
## College address
Linacre College, St. Cross Road, Oxford OX1 3JA
## Website
www.linacre.ox.ac.uk
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## PRINCIPAL’S REVIEW
This has been a year of recovery and repair for a college impacted by the lengthy Covid pandemic. An important purpose for a graduate college is to host a community of scholars in order to nurture their engagement and cooperation. Rules on social distancing and prohibitions on gathering prevented this from happening for a significant portion of the year.
The College took advantage of periods when the main site was in little use to carry out a major refurbishment of facilities that were no longer fit for purpose. A key issue has been improving access, particularly for people with mobility impairment. We have installed a platform lift to provide new ground floor access to the college, and a passenger lift that gives access to our library and main meeting room. The college completed a refit and refurbishment of Stoke House, creating high quality student accommodation, two new seminar rooms and space for a new research unit, the Centre for Eudaimonia and Human Wellbeing. The Centre’s Director is the newly appointed Erel Shalit Carlsberg Foundation Research Fellow in Behavioural Neuroscience.
We began work on a thorough renovation of ground floor facilities on our main site, to create a new meeting room with accessible bathroom facilities and a gentle ramped access to the main college dining hall. We have also begun the first major refurbishment of our library in nearly 50 years. This will not only improve the quality of the working environment for our students and fellows, but will provide environmentally controlled storage for our important collection of philosophy texts, the Ryle Collection.
In our garden we have buried a capacious flood water storage tank beneath the lawn. Flash flooding has become a significant threat in our corner of Oxford so we have decided to increase our resilience and protect the new ground-floor facilities should a deluge overwhelm drainage capacity. Climate change is becoming very real and the concept of Net Zero Carbon an urgent and important one.
A major focus of development activity this year has been on re-establishing lapsed relationships with alumni and on major gift fund-raising. The College has been engaged in detailed negotiations with a donor from Vietnam wishing to make a major benefaction to the college. We have commissioned due diligence and legal work in the preparation of a gift agreement and carried out an options appraisal and feasibility study for a potential new site for college buildings. The College’s governing body has been kept informed of progress with the negotiations throughout and has been very supportive of the proposals. The UK Department for Education, Charity Commission and the University of Oxford Committee for the Review of Donations have all concluded that they are satisfied with the due diligence work the College has carried out. However, it has proved challenging for us to complete a final step in the College’s own processes and this has delayed the arrival of the first tranche of the gift.
The College continued to prioritise activities designed to widen participation in post-graduate research and education by students from under-represented groups. UNIQ+ research internships provide students from under-represented and disadvantaged backgrounds who are ordinarily resident in the UK, with the opportunity to experience postgraduate study. During the six-week programme in July and August, participants undertook a research project, attended training skills sessions and received information about graduate study.
The first cohort of 12 early career post-doctoral researchers, funded by the Carlsberg Foundation, joined Linacre for the start of their 24- month fellowships in Oxford. They have added to the diversity of fellowship, bringing in fully-funded academics in areas of scholarship that are not normally well resourced in the UK, including history, music and linguistics.
For the first time in two years, we were able to host a major academic event – the 2022 Tanner Lecture in Human Values. The lecture was delivered by Rosalind Picard, Professor of Media Arts and Sciences at MIT, a scientist and engineer, member of MIT's Media Lab, founder and Director of the Affective Computing research group. The lecture on “Emotion, Artificial Intelligence and Human Values” was given on 9[th] June in the lecture theatre of the University Museum of Natural History to a packed audience of over 300.
Dr Nick Brown, 30th November 2022
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LINACRE COLLEGE Report of the Governing Body Year ended 31 July 2022
The Members of the Governing Body present their Annual Report for the year ended 31 July 2022 under the Charities Act 2011, together with the audited financial statements for the year.
## REFERENCE AND ADMINISTRATIVE INFORMATION
The Principal and Fellows of Linacre College in the University of Oxford, which is known as Linacre College, (“the College”) is an eleemosynary chartered charitable corporation aggregate. It was established by the University of Oxford in 1962 as a Society for men and women graduates reading for advanced degrees and diplomas of the University and granted a Royal Charter of Incorporation on 5 June 1986.
The College is registered with the Charities Commission (registered number 1142130).
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 dated 5 April 1986.
## Governing Body
The Governing Body is constituted and regulated in accordance with the College Statutes, the terms of which are enforceable ultimately by the Visitor, who is the High Steward of The University of Oxford.
The Governing Body is self-appointing, with new members elected on the basis of academic distinction, their capacity to advise the College and its students on practices in the range of academic disciplines in the University and (Common Room members) their capacity to represent the interests of junior members of the College.
The Governing Body determines the on-going 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 Principal and is advised by its subsidiary committees.
## Recruitment and training of Members of the Governing Body
The Principal and the President of the Common Room are ex officio members of the Governing Body. New Official, Professorial and Senior Research Fellows are elected by a majority decision of the official members of the Governing Body. Four members of the Common Room (including one Junior Research Fellow) are elected to the Governing Body by the members of the Common Room (excluding those who are already members of the Governing Body). New Members of the Governing Body are inducted into the workings of the College, including Governing Body policy and procedures, by the Principal and other senior staff members.
New members of the Governing Body receive information and guidance on the role and requirements of charity trustees prepared by the Charity Commission and are kept informed of regulatory requirements.
## Remuneration of Members of the Governing Body and Senior College Staff
Members of the Governing Body who are primarily Fellows are teaching and research employees of the University and 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, members of which include external members and Fellows who are not in receipt of remuneration from the College. Remuneration is set in line with that awarded to the University’s academic staff.
The remuneration of college staff who are not Trustees is set by a separate HR Committee.
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## Organisational management
The members of the Governing Body usually meet nine times a year. The work of developing their policies and monitoring the implementation of these is carried out by six main committees:
- The Governance Audit and Risk Management Committee, chaired by an external member, provides oversight of the College Risk Register and reviews College processes and practices to provide detailed scrutiny on behalf of the Governing Body.
- The Finance and Investment Committee provides financial oversight of the College. It is responsible for budgeting and financial planning, investments and financial reporting. It monitors the cost, efficiency and effectiveness of operations, reliability of financial reporting, and compliance with laws and regulations. It makes decisions on investments taking account of risk, financial objectives, legal and ethical requirements. This committee is also responsible for supervising the work of the Development Office.
- The Academic Committee co-ordinates academic activities in the College. It makes recommendations for the election of new Fellows, academic visitors and introduced and continuing members of the Common Room. It awards scholarships to students and small academic grants to Fellows. It sets student admissions targets and reviews admissions policies.
- The Remuneration Committee, comprising principally external members and with an external chair, determines the salaries and stipends paid to the Principal and Fellows of the College to ensure that they are set and maintained at an appropriate level.
- The Domestic Committee oversees the operation and maintenance of all College buildings and estate. It monitors the provision of security, catering and cleaning. In addition it is responsible for ensuring regulatory compliance with all health and safety legislation, for setting emergency procedures, for monitoring and updating risk assessments, for reviewing reports and statistics on accidents and ill health, and for health and safety training.
- The Welfare and Equality Committee reviews policies and practice to ensure that they do not result in unintended discrimination, monitors the effectiveness of equal opportunity programmes in the College, ensures regulatory compliance with equality legislation and advises Governing Body on matters that may affect equal opportunities. The committee monitors welfare provision and effectiveness within College.
The day-to-day running of the College is delegated to a senior management team comprised of the Principal, the Vice-Principal, the Finance Bursar, the Domestic Bursar and the Senior Tutor. The Principal and/or VicePrincipal attend all meetings of the Governing Body’s Committees.
## Group structure and relationships
The College also administers many special funds as detailed in Notes 15 to 16 to the financial statements.
The College is part of the collegiate University of Oxford. Material interdependencies between the University and the College arise as a consequence of this relationship.
## AIMS, OBJECTIVES AND ACTIVITIES
## Charitable Aims and Objectives
The College’s aim is to benefit society by the advancement of knowledge and understanding through excellence in education and research as a College of the University of Oxford.
The Governing Body has considered the Charity Commission’s guidance on public benefit and in keeping with this purpose, it has set the College’s principal objectives to be:
- to provide academic, pastoral, administrative, and financial support for the post-graduate education, at Oxford University, of students who have the highest potential to benefit, regardless of their financial, social, religious or ethnic background;
- to facilitate and support research and teaching at Oxford University, by a community of advanced scholars in order to increase public learning and knowledge in specific areas of study that are of academic merit and value.
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LINACRE COLLEGE Report of the Governing Body Year ended 31 July 2022
## Activities and Achievements of the College
The College’s activities are focused on achieving its objectives and thereby its aim of advancing knowledge and understanding for public benefit. Performance during the reporting year against each of these activities is described.
## 1. Recruitment of academically outstanding students and Fellows from across the world
The College admitted 221 new students in October 2021 which took the total number of registered students at Linacre to 587.
Reflecting the international and inclusive ethos of Linacre, 93 nationalities were represented within the student body with only 31% of the College community registered as UK students. In comparison to the University-wide average of 34% of black and minority students, 44% of Linacre students identified as black or minority ethnic. In October 2021, 48% of registered students at College were female; broadly in line with the University average of 50%.
The high cost of study at Oxford University remains a barrier to many students. College continues to priorotise the establishment of new scholarships to ensure that those offered a place at Linacre are able to access the University, regardless of financial circumstance. The College awarded a total of 36 scholarships during 2021/22 and Linacre continues to play a central role in UNIQ+, the University Graduate Access Programme, and also in the establishment of access scholarships through the development of the Academic Futures scholarship programme.
In July 2022, the Linacre community included 23 Official Fellows, 11 Professorial Fellows, 6 Senior Research Fellows and 49 Junior Research Fellows.
A full breakdown of admission statistics can be viewed below:
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Admissions 2020 2021
Applications received 499 405
Places offered
472 95% 376 93%
Withdrawn/Deferred 172 36% 155 41%
Students admitted
294 62% 221 59%
UK students
107 36% 68 31%
EU students
41 14% 24 11%
Overseas students
146 50% 129 58%
Male students 153 52% 99 45%
Female students
141 48% 122 55%
Taught students 181 62% 132 60%
Research students
113 38% 89 40%
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## 2. Promoting academic activity, including hosting high profile public lectures on the themes of ‘Human values’ and ‘The environment’ and regular research seminars by Linacre members. Hosting academic meetings and workshops and fostering peer support of members through subject related groupings
As restrictions lifted throughout the year, College delivered an increasingly active programme of academic lectures and events. During the Hilary Term, the Linacre Lecture Series relaunched in the newly refurbished Tanner Room. Students and early career researchers presented on a broad range of topics including Chaucer, brain structure, schooling in Afghanistan, pregnancy screening, Covid population exposure and extra-terrestrial life forms. The lectures were offered in a hybrid format so those not wishing to attend in person could join remotely and the series could engage a wider audience of students, fellows and alumni.
The Centre for Eudaimonia and Human Flourishing, established at Linacre due to funding from the Carlsberg and Pettit Foundations, hosted a series of exciting talks during Trinity term. The Centre undertakes interdisciplinary research into human flourishing, eudaimonia and the life well-lived and places special focus on human brain dynamics. Weekly hybrid talks from experts across a variety of international institutions explored the themes of episodic memory, sonic translations of nature, the science of emergence and music in the brain.
In June, College offered the prestigious Tanner Lecture on “Emotion, AI and Human Values” at the University’s Natural History Museum. The 2022 Tanner lecture was delivered by Professor Rosalind Picard, Director of Affective Computing Research at the MIT Media Lab, who met with Linacre students and fellows following the lecture to further explore the research themes.
During the summer months the College hosted a group of UNIQ+ interns undertaking their research. Linacre provided a space for these students and interns from across the University to socialise and share ideas and experiences.
In September, Linacre hosted the annual competition for the Domus Research Prizes, the Moorbath and Keene Domus Prizes, the Busuttil Prize (for the areas of Business, Criminology, Government, International Relations, Law or Politics) and the Dobson Prize for a student in the MPLS division. Participants were invited to present part of their research to a non-specialist audience as part of the wider Gaudy celebrations and attendees voted for the most engaging and effective submissions.
## 3. Monitoring the academic progress of graduate students and the provision of independent advice and guidance to those who are facing problems in their study in order to help them gain maximum benefit from their studies at Oxford University
The Senior Tutor, Principal and Vice-Principal held individual review meetings with each Linacre student throughout the year. All students were allocated a College advisor who is a senior member of staff, University researcher or lecturer, often in a cognate discipline. Advisors were responsible for monitoring progress reports on their individual advisees as well as meeting advisees socially to promote wellbeing and provide support where required.
Throughout the year, the Senior Tutor was available to support Linacre students on a daily basis, offering advice and practical support in a significant number of academic, welfare and domestic cases. The Academic Registrar and the Academic Administrator also provided daily advice to students facing personal or academic issues. College trained and funded a Peer Supporter Network and a team of Welfare First Responders to assist students outside of office hours. These services were supported by the Junior Dean and three Assistant Junior Deans. Where appropriate, students were referred to the University Counselling Service, Disability Advisory Service, NHS and the Senior Tutor took up their case with the department, Proctors or University central administration.
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## 4. Provision of affordable, comfortable, secure and well-equipped accommodation for graduate students in close proximity to their places of study
Linacre College aims to provide accommodation to new students for at least their first year in Oxford. College accommodation consists of 252 study bedrooms, including 15 double rooms, 81 ensuite rooms and 2 self-contained family flats.
College has invested in an expanded and skilled maintenance team to improve the condition of student accommodation at a reasonable cost. During 2022, Linacre continued to refurbish study bedrooms, undertaking decoration and renovation work as rooms were vacated. One house, 201 Iffley Road, was closed for the entire summer vacation to be fully renovated and generate 10 modernised ensuite student bedrooms.
## 5. Provision of a Common Room and Dining Hall where students and Fellows can meet and interact in ways which support and enhance their academic study. Provision of social events and recreational facilities for students and Fellows that enhance their enjoyment of Oxford University and help them maintain an appropriate work-life balance.
As the world reopened from the COVID pandemic, it was crucial for the Common Room to provide space for people to meet, relax, and exchange ideas, a good social health important to student and Fellow well-being. In this aim, Common Room was pleased to support over 15 clubs and societies, including several new and revived clubs, aided by the provision of sporting equipment and other services. Additionally, the Common Room hosted its own welfare and social events catering to the diverse tastes of College members. They ranged from large scale BBQs and Bops, including Linacre’s hallmark ‘Sexy Sub Fusc™’, to smaller parties and pub quizzes, to calmer events such as movie nights, formal exchanges, and tours. On the welfare-side of things, ‘Shut Up and Study’ sessions, themed brunches, and welfare teas were perennial favourites. The Common Room was also excited to bring back the Jumble Sale which not only allowed members to purchase recycled items, but raised vital money for worthwhile charities. This was all on top of the significant social role the democratic institution of the Common Room has in representing all College members in the same body.
The Dining Hall operated throughout the year, with some reduction in capacity during waves of COVID in the winter. Guest nights recommenced in year and, by Trinity term, were operating at full capacity. Demand for reasonably priced and good quality food has clearly increased, with the dining hall canteen style lunches and dinners reaching new levels of popularity by the end of the year.
## 6. Provision of a library, quiet study spaces, high quality IT facilities and technical support in order to assist Fellows and students in their academic study
The Linacre library has been undergoing significant refurbishment since the summer of 2021. This has included the installation of a lift, ensuring that all floors of the library are accessible for the first time. Ongoing works, due for completion in November 2022, include new reading spaces; individual study desks; bespoke facilities for the prestigious Ryle collection and improved thermal performance with comfort heating and an air circulation system which will monitor both temperature and Co2 levels.
A full stock-take of the library took place in early 2022 with almost 10,000 items scanned and many books and donations catalogued. A project to remove duplicate copies, less used books and outdated editions allowed the library to donate 16 boxes of books to the charity Better World Books. This process has also ensured that the library is better placed to make purchasing decisions that reflect the needs of the Linacre community with the focus of improving e-book resources.
Alternative space was made available to students from June when the library closed for the refurbishment works and the library team was relocated to a temporary office. The library continued to receive a steady stream of student requests over this period and remained able to respond in a timely manner and swiftly access e-resources for the College’s international community.
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Report of the Governing Body Year ended 31 July 2022
In addition to the physical updates to the library space, the Library Assistant undertook a number of training courses to improve the team’s in-house skill set. The team has also increased its outreach and communications to the Linacre community, keeping them abreast of new facilities, acquisitions and skills sessions across the University system. There has been a display in College of the New Naturalists (NNL) collection and a further display of more recent titles (2020-2022) has been planned.
The IT department, kept extremely busy supporting College members during the pandemic, has been updating systems to sustain growth in student and staff numbers as well as physical sites. A project to rebuild the staff network was successfully completed allowing improvements in reliability, security and functionality. Cyber security has remained a key focus for the IT team with reviews and enhancements in this area ongoing.
## 7. The provision of prizes and scholarships to support and reward those students who are deemed to have the highest academic potential
The College’s scholarship programme has been successful in improving access to post-graduate education and training for students from under-represented backgrounds. In October 2021, Linacre provided 36 scholarships awarding a total of £566,585. These scholarships included:
Brewer Street Scholarship Clarendon Canadian National Scholarship Dapo Olagunju Scholarship EPA Cephalosporin Scholarship (4 awards) Gianturco Scholarship - Theoretical Chemistry Gianturco Scholarship - Music Giacomo Vaciago Scholarship Hicks Scholarship in Economics Linacre Academic Futures Scholarship (4 awards) Linacre Anthropology Scholarship Linacre EPA Cephalosporin Black Academic Futures Scholarship Linacre EPA Cephalosporin Academic Futures Scholarship Mary Blaschko Scholarship Mott Scholarship - English Mott Scholarship -Environmental Research DTP Norman & Ivy Lloyd/Commonwealth Shared Scholarship Oxford - Christopher and Sharyn Brooks Scholarship Oxford – EPA Cephalosporin Scholarship Oxford - Linacre African Scholarship Oxford - Saïd Rhodes Scholarship Oxford Commonwealth Trapnell Scholarship Oxford–Professor Louis J. Curran Scholarship for Music Rausing Scholarship in Anthropology Rausing Scholarship in English Ronald and Jane Olson Scholarship Ryle Scholarship in Philosophy Showa Denko Environmental Scholarship Wanakaset Environmental Research Scholarship (2 awards) Women in Science Scholarship
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LINACRE COLLEGE Report of the Governing Body Year ended 31 July 2022
In September, Linacre hosted the annual competition for four Domus Research Prizes each worth £500 with £50 awarded to runners up - the Moorbath and Keene Domus Prizes, the Busuttil Prize (for the areas of Business, Criminology, Government, International Relations, Law or Politics) and the Dobson Prize for a student in the MPLS division. Three Thomas Linacre Studentships, totaling £1500, were also awarded in recognition of outstanding contributions to College life.
## 8. Provision of support, bursaries and interest-free loans to students facing financial hardship
Throughout the year, the College administered hardship payments of £91,638 to 29 students from a specific COVID- 19 hardship fund. Linacre also processed a further 20 hardship grants worth £8,650 to students facing unexpected financial difficulties.
The College completed 17 “writing-up” grants totaling £7,798 to students requiring monetary support to submit their thesis after scholarships or funding had expired.
## 9. Provision of Junior Research Fellowships to early-career academics to help them establish their professional networks and integrate them more closely into the University academic community
There were 49 Junior Research Fellows at Linacre during the year, working across all five major divisions of the University. 21 new Junior Research Fellowships were awarded for commencement in October 2021 with the new Fellows conducting research in psychology, mathematics, engineering, computer science, medicine, biochemistry, classics, philosophy, English, geography, natural history, materials, wildlife conservation, molecular medicine, zoology, physics, medieval and modern languages and anthropology.
## 10. Provision of small grants to students and Fellows for travel in pursuance of their research
The College awarded 42 fund grants worth £7,440.15 to enable Linacre students to present their research at conferences and engage with approved academic activities to inspire their work.
Four grants totaling £955.75 were awarded to Fellows and 9 grants totaling £3,949.70 were given to Junior Research Fellows to enable travel and facilitate research support.
.
## 11. On-going and dedicated promotion of the College to its Alumni, Friends and Supporters, and fundraising from these constituencies
The College enjoyed the second most successful fundraising year of its history. Voluntary income from over 230 donors amounted to £2,340K and there were significant donations to the Centre for Eudaimonia and Human Flourishing, as well as a large gift from the EPA Cephalosporin Fund to endow two fully funded scholarships in the MPLS or Medical Sciences division with matched funding from the Graduate Endowment Matching Scheme. The support for the Linacre House Trust has remained strong with the development team raising an additional £59,000 to bring the total achieved for the hardship campaign to £228K.
Alumni and donor events have fully returned post pandemic and have included activity in France, Brussels, the Netherlands, Germany, Canada and the UK. The programme of events is set to increase further with the appointment of an Alumni Relations and Events Officer joining the development team from November 2022. The Development Office has also continued to engage the alumni community with regular e-newsletter updates and the publication of the annual alumni magazine.
The College has not received any complaints about fundraising activity during the 2021-21 financial year.
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## 12. Representing the interests of Fellows and graduate students in the wider University and contributing to the development of University policies and practices in order to assist in their learning, teaching and research
Linacre College representatives have contributed to major University and Conference of Colleges committees throughout the year. In addition, all senior officers of the College attended and participated in Conference of Colleges working groups.
The Principal of Linacre chaired the ‘University Buildings and Estates Committee’ and the ‘Development Panel’ and also fulfilled the role of Deputy Chair for the ‘Planning and Resource Allocation Committee’.
The College Senior Tutor undertook the roles of Deputy Chair for the ‘Conference of Colleges Graduate Committee’ and Standing Committee of the ‘Graduate Committee’ whilst also contributing as a member of the ‘University Hardship Committee’, ‘Research Degrees Panel’, ‘Taught Degrees Panel’, ‘UNIQ+ Management Group’, ‘High Risk Sponsors Working Group’ and ‘Graduate Admissions Summer Steering Group’. The Finance Bursar was a member of both the ‘Services Working Group’ and the ‘Sports Strategic subcommittee to the Education Committee’.
## FUTURE PLANS
The College is currently assessing the impact of both the COVID pandemic and a proposed substantial donation to the College before developing a new strategic plan. This work is ongoing.
## Accommodation and Facilities
Having acquired and refurbished 3 substantial properties in the last 3 years, the College has no immediate plans for substantial new residential buildings, though is exploring options for refurbishment that may include some additional ensuite facilities being created. Works on the main site to refurbish maintenance and staff facilities, as well as the library, were completed in November 2022
## Philanthropic Support
College signed a Memorandum of understanding with a generous donor on 31[st ] October 2021, confirming plans to progress a donation totalling £155m which includes £100m for the acquisition and development of a major second site for the College in central Oxford. Plans are developing with the donor and will be reported as soon as this is possible.
## FINANCIAL REVIEW
Total Incoming resources (excluding voluntary income) increased by 20% to £6,131k. This reflects continued growth in dividend income from the Oxford University Endowment Fund and continued healthy levels of student recruitment with some increase in conference and rental income.
The principal funding sources are student fees and residential rents. The impact of recent expansion in room numbers is now being felt, with an improved margin through increasingly efficient housekeeping and maintenance operations.
COVID continued to have an impact during the year under review, though largely in waves rather than dominating the full year picture. Student events were impacted by cancellations as were some commercial events but the main impact was the continued demand on hardship funds through students being forced to extend their period of study. World events, including currency devaluations and conflict began to impact on costs too.
Resources expended increased by 39% to £6,330k. This increase is largely caused by building and refurbishment work treated as revenue expenditure, increased depreciation charges on the expanded asset base and a substantial increase in the defined benefit pension provision charge. In accordance with the provisions of FRS 102 the College has recognised a liability for the future contributions that it estimates will
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## LINACRE COLLEGE
Report of the Governing Body Year ended 31 July 2022
be payable as a result of deficit funding agreements for the two pension schemes the College participates in on behalf of its staff. Some increase to headcount has fed through into expenditure numbers, but also increases in restricted, typically scholarship, expenditure.
The value of the investment portfolio increased to £36,133k. This included investment losses of £711k. In the previous year, investment gains were £5,139k demonstrating considerable uncertainty and fluctuation impacting College’s endowment investments. The losses of 2021/22 have been largely reversed in Q1 2022/3 but considerable future uncertainty remains.
## Reserves policy
The College’s reserves policy is to maintain sufficient free reserves to enable it to meet its short-term financial obligations in the event of an unexpected revenue shortfall and to allow the College to be managed efficiently and to provide a buffer that would ensure uninterrupted services.
Total funds of the College totalled £43,288k (2021: £40,926k). This includes endowment capital of £27,854k (2021: £24,913k) and unspent restricted income funds totalling £1,961k (2021: £2,292k). Unrestricted reserves, including those representing the value of fixed assets held, at the year-end totalled £1,229k (2021 £8,607k) and funds designated at the year-end amounting to £12,244k (2021: £5,615k). Designated reserves at the year-end include funds set aside for future expenditure on maintenance and refurbishment of buildings.
## Risk management
The College is engaged in risk assessment on an on-going basis. When it is not able to address risk issues using internal resources, the College takes advice from experts external to the College with specialist knowledge. Policies and procedures within the College are reviewed by the relevant College Committee, chaired by the Principal. Financial and investment risks are assessed and monitored by the Finance and Investment Committee. In addition, regular meetings between the Domestic Bursar and domestic departmental managers consider health and safety issues. Training courses and other forms of career development are available, when requested, to members of staff to enhance their skills in risk-related areas.
15
LINACRE COLLEGE Report of the Governing Body Year ended 31 July 2022
The Governing Body, who has ultimate responsibility for managing any risks faced by the College, has reviewed the processes in place for managing risk and the principle identified risks to which the College and its subsidiaries are exposed and have concluded that adequate systems are in place to manage these risks. To support the Governing Body in this work, an externally chaired Governance, Audit and Risk Committee (GARC) has been established. The Governing Body reviews every term the risks escalated by the GARC and the full risk register annually.
## Investment policy, objectives and performance
The College’s investment objectives are to balance current and future beneficiary needs by:
- maintaining (at least) the value of the investments in real terms;
- producing a consistent and sustainable amount to support expenditure; and
- delivering these objectives within acceptable levels of risk.
Most of the College’s endowment funds are managed by Oxford University Endowment Management in the Oxford Endowment Fund (OEF).
We note that the extreme market conditions present in 2019/20 caused a fall of £389k in the value of the endowment before a gain of £5,139k in 2020/21. This puts the loss of £711k in 2021/22 into context and demonstrates something of the volatility of the market in recent months, but also the excellent performance of the OEF.
Since dividends on OEF holdings are based on units held at the end of December, the accounts for 2021-22 include a large accrual for 7 months for the dividend on the holding from 1 January 2022. The accrual has been estimated using the best available information. The dividend for the 7 months to 31 July 2022 will be declared in Spring 2023.
The dividend receivable from the Oxford Endowment Fund is based on a 4.25% return on a rolling average of capital values over 5 years.
The investment strategy, policy and performance are monitored by the Finance Committee. At the year end, the College’s long term investments totalled £36,133k (2021 £33,228k), though this of course includes £9,000k of debt funding.
## STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES
The Governing Body is responsible for preparing the Report of the Governing Body and the financial statements in accordance with applicable law and regulations.
Charity law requires the Governing Body to prepare financial statements for each financial year. Under that law the Governing Body has prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102: The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102).
Under charity law the Governing Body must not approve the financial statements unless it is satisfied that they give a true and fair view of the state of affairs of the College and of its net income or expenditure for that period. In preparing these financial statements, the Governing Body is required to:
- select the most suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable accounting standards, including FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements;
- state whether a Statement of Recommended Practice (SORP) applies and has been followed, subject to any material departures which are explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the College will continue to operate.
The Governing Body is responsible for keeping proper accounting records that are sufficient to show and explain the College’s transactions and disclose with reasonable accuracy at any time the financial position of the College and enable it to ensure that the financial statements comply with the Charities Act 2011. It is also
16
LINACRE COLLEGE Report of the Governing Body Year ended 31 July 2022
responsible for safeguarding the assets of the College and ensuring their proper application under charity law and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Governing Body on 30 November 2022 and signed on its behalf by:
Dr Nick Brown, Principal
17
## LINACRE COLLEGE
## Report of the Auditor to the Members of the Governing Body of Linacre College For the year ended 31 July 2022
## Opinion
We have audited the financial statements of Linacre College (the “Charity”) for the year ended 31 July 2022 which comprise the Statement of Accounting Policies, the Consolidated Statement of Financial Activities, the Consolidated and College Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements
- give a true and fair view of the state of the group and charity’s affairs as at 31 July 2022 and of the group’s income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- have been prepared in accordance with the requirements of the Charities Act 2011.
## Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Members of the Governing Body’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Members of the Governing Body with respect to going concern are described in the relevant sections of this report.
## Other information
The Members of the Governing Body are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
18
Independent auditor’s report to the Members of the Governing Body of Linacre College Year ended 31 July 2022
## LINACRE COLLEGE
## Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:
- sufficient accounting records have not been kept;
- the financial statements are not in agreement with the accounting records and returns; or
- we have not obtained all the information and explanations necessary for the purposes of our audit.
## Responsibilities of the Members of the Governing Body
As explained more fully in the Statement of Accounting and Reporting Responsibilities [set out on page 14], the Members of the Governing Body are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Members of the Governing Body are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Members of the Governing Body either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.
## Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the charity through discussions with Members of the Governing Body and other management, and from our knowledge and experience of the client’s sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including Charities Act 2011, Office for Students and Oxford University requirements, taxation legislation, data protection, employment and pensions, planning and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and, where relevant, inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
19
## LINACRE COLLEGE
## Independent auditor’s report to the Members of the Governing Body of Linacre College Year ended 31 July 2022
We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of Members of Governing Body and other management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions;
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims;
- if considered necessary, reviewing correspondence with relevant regulators and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Members of Governing Body and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities.
This description forms part of our auditor’s report.
## Use of our report
This report is made solely to the College’s Governing Body, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Members of the Governing Body those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the College’s Governing Body as a body, for our audit work, for this report, or for the opinions we have formed.
## Critchleys Audit LLP
Statutory Auditor Oxford
Date:
Critchleys Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
20
LINACRE COLLEGE Statement of Accounting Policies Year ended 31 July 2022
## Scope of the financial statements
The financial statements present the Statement of Financial Activities (SOFA), the Balance Sheet and the Statement of Cash Flows.
## 1. Basis of accounting
The 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 Statement of Financial Activities (SOFA). The principal accounting policies adopted are set out below and have been applied consistently throughout the year.
## 2. 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 most significant effect on amounts recognised in the financial statements.
The College participates in a multi-employer defined benefit pension plan. In the judgement of the Governing Body there is insufficient information about the plan assets and liabilities to be able to reliably account for its share of the defined benefit obligation and plan assets in the financial statements and therefore the plan is accounted for as a defined contribution scheme (see note 17).
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 exists 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.
In the view of the Governing Body, no assumptions concerning the future or estimation uncertainly affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.
## 3. 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, HEFCE support and other charges for services
Fees receivable, HEFCE support and charges for services and use of the premises 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 charity has entitlement to the resource, the amount can be reliably measured and the economic benefit to the College of the donation or grant is probable. Donations and grants subject to performance-related conditions are recognised as and when those conditions are met. Donations and grants subject to other specific conditions are recognised as those conditions are met or their fulfilment is wholly within the control of the College and it is probable that the specified conditions will be met.
Legacies are 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.
21
LINACRE COLLEGE Statement of Accounting Policies Year ended 31 July 2022
Donations, grants and legacies accruing for the general purposes of the College are credited to unrestricted funds.
Donations, grants and legacies which are subject to conditions as to their use imposed by the donor or set by the terms of an appeal are credited to the relevant restricted fund or, where the donation, grant or legacy is required to be held as capital, to the endowment funds. Where donations are received in kind (as distinct from cash or other monetary assets), they are measured at the fair value of those assets at the date of the gift.
## c. Investment income
Interest on bank balances is accounted for on an accrual basis with interest recognised in the period to which the interest relates, to the extent that College has an entitlement to the income at year end.
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.
## 4. Expenditure
Expenditure is accounted for on an accruals basis. A liability and related expenditure is 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 Statement of Financial Activities (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.
## 5. 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 recognized 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.
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.
## 6. Tangible fixed assets
Land is stated at cost. Buildings and equipment are stated at cost less accumulated depreciation and any accumulated impairment losses.
Expenditure on the acquisition or enhancement of land and on the acquisition, construction and enhancement of buildings which is directly attributable to bringing the asset to its working condition for its intended use and amounting to more than £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 and its subsidiaries is charged to the SOFA as incurred.
22
LINACRE COLLEGE Statement of Accounting Policies Year ended 31 July 2022
## 7. Depreciation
Depreciation is provided to write off the cost of all relevant tangible fixed assets, less their estimated residual value, in equal annual instalments over their expected useful economic lives as follows:
Freehold properties, including major extensions 50 years Leasehold properties 50 years or period of lease if shorter Furniture and Equipment 4 - 10 years Computer Equipment 3 years
Freehold land is not depreciated. The cost of maintenance is charged in the SOFA in the period in which it is incurred.
At the end of each reporting period, the residual values and useful lives of assets are reviewed and adjusted if necessary. In addition, if events or change in circumstances indicate that the carrying value may not be recoverable then the carrying values of tangible fixed assets are reviewed for impairment.
## 8. Investments
Listed investments are initially measured at their cost and subsequently measured at their fair value at each reporting date. Fair value is based on their quoted price at the balance sheet date without deduction of the estimated future selling costs.
Investments such as hedge funds and private equity funds which have no readily identifiable market value are initially measured at their costs and subsequently measured at their fair value at each reporting date without deduction of the estimated future selling costs. Fair value is based on the most recent valuations available from their respective fund managers.
Changes in fair value and gains and losses arising on the disposal of investments are credited or charged to the income or expenditure section of the SOFA as ‘gains or losses on investments’ and are allocated to the fund holding or disposing of the relevant investment.
Investment properties are held at valuation and are valued on a regular basis using an appropriate external expert.
## 9. Other financial instruments
## a. Derivatives
The college does not deal in derivatives.
## b. Cash and cash equivalents
Cash and cash equivalents include cash at banks and in hand and short term deposits with a maturity date of three months or less.
## c. Debtors and creditors
Debtors and creditors receivable or payable within one year of the reporting date are carried at their transaction price. Debtors and creditors that are receivable or payable in more than one year and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest.
## 10. Stocks
Stocks are valued at the lower of cost and net realisable value, cost being the purchase price on a first in, first out basis.
## 11. Foreign currencies
The functional and presentation currency of the College and its subsidiaries is the pound sterling.
Transactions denominated in foreign currencies during the year are translated into pounds sterling using the spot exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into pounds sterling at the rates applying at the reporting date.
23
LINACRE COLLEGE Statement of Accounting Policies Year ended 31 July 2022
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.
## 12. 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 objects of the College at the discretion of the Governing Body. The Governing Body may decide that part of the unrestricted funds shall be used in future for a specific purpose and this will be accounted for by transfers to appropriate designated funds.
Restricted funds comprise gifts, legacies and grants where the donors have specified that the funds are to be used for particular purposes of the College. They consist of either gifts where the donor has specified that both the capital and any income arising must be used for the purposes given or the income on gifts where the donor has required or permitted the capital to be maintained and with the intention that the income will be used for specific purposes within the College’s objects.
Permanent endowment funds arise where donors specify that the funds are to be retained as capital for the permanent benefit of the College. Any part of the total return arising from the capital that is allocated to income will be accounted for as unrestricted funds unless the donor has placed restrictions on the use of that income, in which case it will be accounted for as a restricted fund.
Expendable endowment funds are similar to permanent endowment in that they have been given, or the College has determined based on the circumstances that they have been given, for the long term benefit of the College. However, the Governing Body may at their discretion determine to spend all or part of the capital.
## 13. Pension costs
The costs of retirement benefits provided to employees of the College through two multi-employer defined pension schemes 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.
24
## Linacre College
## Statement of Financial Activities
For the year ended 31 July 2022
**----- Start of picture text -----**
Unrestricted Restricted Endowed 2022 2021
Funds Funds Funds Total Total
Notes £'000 £'000 £'000 £'000 £'000
INCOME AND ENDOWMENTS FROM:
Charitable activities:
Teaching, research and residential 1 4,350 73 - 4,423 3,230
Donations and legacies 2 407 825 2,040 3,272 3,125
Investments
Investment income 3 1,124 464 - 1,588 1,307
Other income 4 120 - - 120 561
Total income 6,001 1,362 2,040 9,403 8,223
EXPENDITURE ON: 5
Charitable activities:
Teaching, research and residential 5,510 586 - 6,096 4,439
Generating funds:
Fundraising 220 - - 220 120
Investment management costs 14 - - 14 9
Total Expenditure 5,744 586 - 6,330 4,568
Net Income/(Expenditure) before gains 257 776 2,040 3,073 3,655
Net gains/(losses) on investments 11 (374) (28) (309) (711) 5,139
Net Income/(Expenditure) (117) 748 1,731 2,362 8,794
Transfers between funds 15 (131) (1,079) 1,210 - -
Net movement in funds for the year (248) (331) 2,941 2,362 8,794
Fund balances brought forward 15 13,721 2,292 24,913 40,926 32,132
Funds carried forward at 31 July 13,473 1,961 27,854 43,288 40,926
**----- End of picture text -----**
25
## Linacre College Balance Sheet As at 31 July 2022
**----- Start of picture text -----**
2022 2021
Notes £'000 £'000
FIXED ASSETS
Tangible assets 9 17,197 16,336
Property investments 10 1,865 1,865
Other Investments 11 36,133 33,228
CURRENT ASSETS
Stocks 22 26
Debtors 12 1,128 1,084
Investments 2,250 4,500
Cash at bank and in hand 7,702 1,582
Total Current Assets 11,102 7,192
LIABILITIES
Creditors: Amounts falling due within one year 13 1,206 1,147
NET CURRENT ASSETS/(LIABILITIES) 9,896 6,045
TOTAL ASSETS LESS CURRENT LIABILITIES 65,091 57,474
CREDITORS: falling due after more than one year 14 20,963 16,047
NET ASSETS/(LIABILITIES) BEFORE PENSION ASSET OR LIABILITY 44,128 41,427
Defined benefit pension scheme liability 19 840 501
TOTAL NET ASSETS/(LIABILITIES) 43,288 40,926
FUNDS OF THE COLLEGE
Endowment funds 27,854 24,913
Restricted funds 1,961 2,292
Unrestricted funds
Designated funds 12,244 5,615
General funds 2,069 8,607
Pension reserve 19 (840) (501)
43,288 40,926
**----- End of picture text -----**
The financial statements were approved and authorised for issue by the Governing Body of Linacre College on
Trustee:
Trustee:
26
## Linacre College
## Statement of Cash Flows
## For the year ended 31 July 2022
**----- Start of picture text -----**
2022 2021
Notes £'000 £'000
Net cash provided by (used in) operating activities 21 226 687
Cash flows from investing activities
Dividends, interest and rents from investments 1,588 1,307
Proceeds from the sale of property, plant and equipment - 1,260
Purchase of property, plant and equipment (1,287) (7,569)
Proceeds from sale of investments - 106
Purchase of investments (3,615) (3,782)
(Additions to)/withdrawals from cash deposits 2,250 1,473
Net cash provided by (used in) investing activities (1,064) (7,205)
Cash flows from financing activities
Repayments of borrowing (84) (74)
Cash inflows from new borrowing 5,000
Receipt of endowment 2,042 2,281
Net cash provided by (used in) financing activities 6,958 2,207
Change in cash and cash equivalents in the reporting period 6,120 (4,311)
Cash and cash equivalents at the beginning of the
reporting period 1,582 5,893
Change in cash and cash equivalents due to exchange rate
movements -
Cash and cash equivalents at the end of the reporting
period 23 7,702 1,582
**----- End of picture text -----**
27
Linacre College Notes to the financial statements For the year ended 31 July 2022
|1
INCOME FROM CHARITABLE ACTIVITIES
Teaching, Research and Residential
Unrestricted funds
Tuition fees - UK and EU students
Tuition fees - Overseas students
Other fees
Other HEFCE support
Other academic income
College residential income
Restricted funds
Tuition fees - UK and EU students
Other academic income
College residential income
Total Teaching, Research and Residential
Total income from charitable activities
2
DONATIONS AND LEGACIES
Donations and Legacies
Unrestricted funds
Restricted funds
Endowed funds
3
INVESTMENT INCOME
Unrestricted funds
Interest on fixed term deposits and cash
Other investment income
Restricted funds
Interest on fixed term deposits and cash
Other investment income
Total Investment income
4
OTHER INCOME
Other unrestricted income
HMRC CJRS income
Other restricted income|2022
£'000
646
1,194
-
-
96
2,414
4,350
-
73
-
73
4,423
4,423
2022
£'000
407
825
2,040
3,272
2022
£'000
49
1,075
1,124
-
464
464
1,588
2022
£'000
118
2
0
120|2021
£'000
674
1,183
-
67
26
1,219
3,169
3
58
61
3,230
3,230
2021
£'000
105
739
2,281
3,125
2021
£'000
-
1,003
1,003
-
304
304
1,307
2021
£'000
0
113
448
561|
|---|---|---|
The above analysis includes £0k received from Oxford University from publicly accountable funds under the CFF Scheme (2021: £448k).
|5
ANALYSIS OF EXPENDITURE
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|2022
£'000
1,676
2,732
1,688
6,096|2021
£'000
1,164
1,963
1,312
4,439|
|---|---|---|
28
Linacre College Notes to the financial statements For the year ended 31 July 2022
|5
ANALYSIS OF EXPENDITURE (continued)
Expenditure on raising funds
Direct staff costs allocated to:
Fundraising
Other direct costs allocated to:
Fundraising
Investment management costs
Support and governance costs allocated to:
Fundraising
Investment management costs
Total expenditure on raising funds
Total expenditure|2022
£'000
162
35
-
23
14
234
6,330|2021
£'000
88
17
-
15
9
129
4,568|
|---|---|---|
The 2021 resources expended of £4568k represented £4215k from unrestricted funds and £353k from restricted funds.
The College is liable to be assessed for Contribution under the provisions of Statute XV of the University of Oxford. The Contribution Fund is used to make grants and loans to colleges on the basis of need. Contributions are calculated annually in accordance with regulations made by the Council of the University of Oxford.
The teaching and research costs include College Contribution payable of £0k (2021 - £0k).
|Included within the resources expended above are:
Operating lease payments
ANALYSIS OF SUPPORT AND GOVERNANCE COSTS
Financial administration
Domestic administration
Investment Management
Human resources
IT
Depreciation
Loss/(profit) on fixed assets
Bank interest payable
Other finance charges
Governance costs
Financial administration
Domestic administration
Investment Management
Human resources
IT
Depreciation
Loss/(profit) on fixed assets
Bank interest payable
Other finance charges
Governance costs|Generating
Funds
£'000
28
-
-
-
9
-
-
-
-
-
37
Generating
Funds
£'000
18
-
-
-
6
-
-
-
-
-
24|2022
Total
£'000
56
Teaching
and
Research
£'000
391
178
-
1
295
426
-
459
-
33
1,783
Teaching
and
Research
£'000
204
94
-
-
203
387
5
386
3
30
1,312|2021
Total
£'000
53
2022
Total
£'000
419
178
-
1
304
426
-
459
-
33
1,820
2021
Total
£'000
222
94
-
-
209
387
5
386
3
30
1,336|
|---|---|---|---|
- 6 ANALYSIS OF SUPPORT AND GOVERNANCE COSTS
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 comprise:
Auditor's remuneration - audit services
Auditor's remuneration - tax advisory services
Auditor's remuneration - other services
Other governance costs|2022
£'000
15
-
7
11
33|2021
£'000
14
5
-
11
30|
|---|---|---|
No amount has been included in governance costs for the direct employment costs or reimbursed expenses of the College Fellows on the basis that these payments relate to the Fellows involvement in the College's charitable activities. Details of the remuneration of the Fellows and their reimbursed expenses are included as a separate note within these financial statements.
29
Linacre College Notes to the financial statements For the year ended 31 July 2022
|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
Graduate Studentships
Total restricted
Total grants and awards|2022
£'000
5
1
6
233
14
-
247
253|2021
£'000
5
1
6
226
4
-
230
236|
|---|---|---|
## 7 GRANTS AND AWARDS
The figure included above represents the cost to the College of the Oxford Bursary scheme. Students of this college received £0k (2021: £0k).Some of those students also received fee waivers amounting to £0k (2021: £0k).
The above costs are included within the charitable expenditure on Teaching and Research.
## 8 STAFF COSTS
|The aggregate staff costs for the year were as follows.
Salaries and wages
Social security costs
Pension contributions
Movement in Pension Reserve
The average number of employees of the College, excluding Trustees,
on a full time equivalent basis was as follows.
College residential
Fundraising
Support
Total
The average number of employed College Trustees during the year was as follows.
Other teaching and research
Other
Total|2022
£'000
1,831
123
216
339
2,509
2022
29
1
18
48
2022
1
3
4|2021
£'000
1,373
99
190
0
1,662
2021
17
1
20
38
2021
1
3
4|
|---|---|---|
The college also benefits from temporary staff and agency workers who are not on the College payroll. There were no employees other than trustees whose gross pay and benefits (excluding employer NI and pension contributions) exceeded £60,000.
30
Linacre College Notes to the financial statements For the year ended 31 July 2022
- 9 TANGIBLE FIXED ASSETS
|Cost
At start of year
Additions
Disposals
At end of year
Depreciation and impairment
At start of year
Charge for the year
On disposals
At end of year
Net book value
At end of year
At start of year
10
PROPERTY INVESTMENTS
Valuation at start of year
Additions and improvements at cost
Disposals
Revaluation gains/(losses) in the year
Valuation at end of year
11
SECURITIES AND OTHER INVESTMENTS
All investments are held at fair value.
Valuation at start of year
New money invested
Amounts withdrawn
(Decrease)/increase in value of investments
Investments at end of year
Investments comprise:
Equity investments
Global multi-asset funds
Fixed term deposits and cash
Total investments
12
DEBTORS
Amounts falling due within one year:
Trade debtors
Amounts owed by College members
Amounts owed by Group undertakings
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
Bank overdrafts
Bank loans
Trade creditors
Amounts owed to College Members
Taxation and social security
Accruals and deferred income
Other creditors|Held outside
the UK
£'000
-
-
-
-|Leasehold
land and
buildings
£'000
302
-
-
302
30
10
-
40
262
272
Agricultural
£'000
-
-
-
-
-
Held in
the UK
£'000
99
36,034
-
36,133|Freehold
land and
buildings
£'000
20,130
1,287
-
21,417
4,285
372
-
4,657
16,760
15,845
Commercial
£'000
1,865
-
-
-
1,865
2022
Total
£'000
99
36,034
-
36,133|Plant and
machinery
£'000
-
-
-
-
-
-
-
-
-
-
Other
£'000
-
-
-
-
-
Held outside
the UK
£'000
-
-
-
-|Fixtures,
fittings and
equipment
£'000
937
-
-
937
718
44
-
762
175
219
2022
Total
£'000
1,865
-
-
-
1,865
2022
£'000
33,228
3,615
-
(711)
36,133
Held in
the UK
£'000
99
33,129
33,228
2022
£'000
29
74
-
15
1,010
-
-
1,128
2022
£'000
-
80
480
98
42
506
-
1,206|Total
£'000
21,369
1,287
-
22,656
5,033
426
-
5,459
17,197
16,336
2021
Total
£'000
-
1,525
-
340
1,865
2021
£'000
26,278
2,257
(106)
4,799
33,228
2021
.
£'000
99
33,129
-
33,228
2021
£'000
77
44
-
17
946
-
-
1,084
2021
£'000
-
80
841
49
30
146
1
1,147|
|---|---|---|---|---|---|---|
31
Linacre College Notes to the financial statements For the year ended 31 July 2022
## 14 CREDITORS: falling due after more than one year
|Bank loans
Other creditors|2022
£'000
914
20,049
20,963|2021
£'000
988
15,059
16,047|
|---|---|---|
## The bank loans relate to:
(i) a 25 year unsecured loan of £500k arranged in 2008 to facilitate the purchase of a functional property. Interest is charged at a margin of 0.3% above bank base rate. The current balance of the loan is currently slightly less than 1/3 of the original cost of the property. (ii) two 5 year unsecured loans of £500k each arranged in 2017 to facilitate the purchase of a functional property. Interest on one of the loans is charged at the fixed rate of 2.05%. Interest on the other is charged at 1% above bank base rate.
## Other creditors relate to:
(i) a loan over 10 years of £99k from the College Contributions Fund for refurbishment of student accommodation.
(ii) a bond for £15m repayable in January 2055 and £5m repayable in September 2051 Both bonds are unsecured, with Legal and General Investmant Management and carry a fixed rate of 2.47% and 2.07% respectively A shelf facility for a further £5m of unsecured borrowing, with no obligation to subscribe, is in place.
Functional properties are not revalued for accounts purposes, but the first property is considered to have a market value considerably in excess of the purchase price
## 15 ANALYSIS OF MOVEMENTS ON FUNDS
|Endowment Funds - Permanent
General Endowment
Scholarships and grants
Student Hardship
Fellows Support
Total Endowment Funds
Endowment funds held by subsidiaries
Total Endowment Funds - Group
Restricted Funds
Scholarships and grants
Student Hardship
Fellows Research
Facilities
Lectures
Total Restricted Funds
Restricted funds held by subsidiaries
Total Restricted Funds - Group
Unrestricted Funds
Fixed Asset Designated Fund
Other Designated funds
General funds
Pension reserve
Total Unrestricted Funds
Unrestricted funds held by subsidiaries
Total Unrestricted Funds - Group
Total Funds|At 1 August
2021
£'000
16,439
6,758
545
1,171
24,913
24,913
1,730
37
166
159
200
2,292
-
2,292
7,305
5,615
1,302
(501)
13,721
-
13,721
40,926|Incoming
resources
£'000
4
2,032
4
2,040
-
2,040
1,226
25
61
6
44
1,362
-
1,362
3,000
3,001
6,001
-
6,001
9,403|Resources
expended
£'000
-
-
-
-
-
-
-
(514)
(1)
(28)
(43)
(586)
-
(586)
(5,744)
(5,744)
-
(5,744)
(6,330)|Transfers
£'000
292
682
236
-
1,210
-
1,210
(845)
(135)
(99)
(1,079)
-
(1,079)
(7,305)
4,003
2,670
501
(131)
-
(131)
-|Gains/
(losses)
£'000
(209)
(87)
(4)
(9)
(309)
-
(309)
(26)
(1)
(1)
(28)
-
(28)
-
(375)
(375)
-
(374)
(711)|At 31 July
2022
£'000
16,526
9,385
777
1,166
27,854
-
27,854
1,571
61
199
29
101
1,961
-
1,961
-
12,244
1,229
-
13,473
-
13,473
43,288|
|---|---|---|---|---|---|---|
16 FUNDS OF THE COLLEGE DETAILS The following is a summary of the origins and purposes of each of the Funds
Endowment Funds - Permanent: General Endowment A consolidation of gifts and donations where income, but not capital, can be used for the general purposes of the charity Student Scholarships and grants Capital balance of past donations where related income, but not the original capital, can be used for student scholarships and grants Student Hardship Capital balance of past donations where related income, but not the original capital, can be used for hardship grants for students Fellows support Capital balance of past donations where related income, but not the original capital, to support Fellows' research.
Restricted Funds: Scholarship and grants Income Hardship Income Fellows Research Income
Facilities Funds Lectures Funds
A consolidation of gifts and donations for student support together with accumulated income of the Scholarships Endowment Funds A consolidation of gifts and donations for student hardship together with accumulated income of the Hardship Endowment Funds A consolidation of gifts and donations for Fellows' support together with accumulated income of the Fellows Endowment Funds A consolidation of gifts and donations for provision of facilities for college members A consolidation of gifts and donations to support the Linacre Lectures and Tanner Lectures
32
Linacre College Notes to the financial statements For the year ended 31 July 2022
## 16 FUNDS OF THE COLLEGE DETAILS continued
Designated Funds Fixed Asset designated Fund Unrestricted Funds which are represented by the fixed assets of the College and therefore not available for expenditure on the College's general purposes Other Designated Funds Unrestricted Funds allocated by the Fellows for future costs for various purposes.
Includes £2.1m Designated Capital funds which are Unrestricted funds allocated by the Trustees for the purpose of preserving the capital and maintaining a long-term income stream in support of the College's activities
The General Unrestricted Funds represent accumulated income from the College's activities and other sources that are available for the general purposes of the College
- 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
17,197
1,865
6,318
9,897
(21,803)
13,473
Unrestricted
Funds
£'000
16,336
1,865
8,315
3,753
(16,548)
13,721|Restricted
Funds
£'000
-
-
1,961
-
-
1,961
Restricted
Funds
£'000
-
-
-
2,292
2,292|Endowment
Funds
£'000
-
-
27,854
-
-
27,854
Endowment
Funds
£'000
-
-
24,913
-
-
24,913|2022
Total
£'000
17,197
1,865
36,133
9,897
(21,803)
43,288
2021
Total
£'000
16,336
1,8653
33,228
6,045
(16,548)
40,926|
|---|---|---|---|---|
## 18 TRUSTEES' REMUNERATION
The Fellows who are the Trustees of the College for the purposes of charity law receive no remuneration for acting as charity trustees but are paid by either or both of the University and the College for the academic services they provide to the College.
Trustees of the college fall into the following categories:
Head of House
Professorial Fellows Fellows by Election Senior Research Fellows President of the Common Room 5 Common Room representatives including 1 Junior Research Fellow.
There are 4 trustees (Principal, Senior Tutor, Finance Bursar and Domestic Bursar) who work full time on management and fundraising.
No trustee receives any remuneration for acting as a trustee. However, those trustees who are also employees of the college receive salaries for their work as employees. These salaries are paid on external academic and academic-related scales and often are joint arrangements with the University of Oxford.
The College has a Remuneration Committee which makes recommendations to Governing Body on pay and benefits which are outside of external scales. The composition of the Remuneration Committee is set out in pages 2 to 4 of the section, Governing Body, Officers and Advisers.
## Remuneration paid to trustees
|Range
£0-£1,000
£1,001-£2,000
£67,001-£68,000
£68,001-£69,000
£70,001-£71,000
£82,001-£83,000
£90,001-£91,000
£104,001-£105,000
£109,001-£110,000
Total|0
1
0
0
2
0
1
0
1
5
Number of
Trustees/Fellows|0
-
-
90,178
109,104
-
1,990
-
£
Gross remuneration, taxable
benefits and pension
contributions
2022
142,238
343,510|1
0
0
2
0
1
0
1
0
5
Number of
Trustees/Fellows|-
-
885
104,820
-
£
-
82,988
Gross remuneration, taxable
benefits and pension contributions
136,022
2021
-
324,715|
|---|---|---|---|---|
33
Linacre College Notes to the financial statements For the year ended 31 July 2022
## 18 TRUSTEES' REMUNERATION continued
39 trustees are not employees of the college and do not receive remuneration.
All trustees may eat at common table, as can all other employees who are entitled to meals while working.
## Other transactions with trustees
Fellows also receive reimbursement of personal expenses necessarily incurred in connection with their services to the College as Trustees. During the year a total of £0 (2021 - £100) was reimbursed to 0 (2021 - one) of the Trustees.
See also note 25 Related Party Transactions.
## Key management remuneration
The total remuneration paid to key management was £372k (2021: £335k).
Key management are considered to be The Principal, Vice Principal , Finance Bursar, Domestic Bursar, and Senior Tutor.
## 19 PENSION SCHEMES
The College participates in two principal pension schemes for its staff - the Universities Superannuation Scheme (USS) and the University of Oxford Staff Pension Scheme (OSPS). The assets of the schemes are each held in separate trustee-administered funds. USS and OSPS schemes are contributory mixed benefit schemes (i.e. they provide benefits on a defined benefit basis - based on length of service and pensionable salary and on a defined contribution basis – based on contributions into the scheme). Both are multi–employer schemes and the College is unable to identify its share of the underlying assets and liabilities relating to defined benefits of each scheme on a consistent and reasonable basis. Therefore, in accordance with the accounting standard FRS 102 paragraph 28.11, the College accounts for the schemes as if they were defined contribution schemes. As a result, the amount charged to the Income and Expenditure Account represents the contributions payable to the schemes in respect of the accounting period. In the event of the withdrawal of any of the participating employers in USS or OSPS, the amount of any pension funding shortfall (which cannot be otherwise recovered) in respect of that employer will be spread across the remaining participating employers and reflected in the next actuarial valuation of the scheme.
The College has also made available the National Employment Savings Trust for its employees who are eligible under automatic enrolment regulations to pension benefits but not eligible for either USS or OSPS.
## Schemes accounted for under FRS 102 as defined contribution schemes
## 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:
**----- Start of picture text -----**
USS OSPS
Date of valuation: 31/03/20 31/03/19
Date valuation results published: 30/09/21 19/06/20
Value of liabilities: £80.6bn £848m
Value of assets: £66.5bn £735m
Funding surplus / (deficit): (£14.1bn) (£113m)
Principal assumptions:
· Discount rate Fixed Interest Gilts +0.5%-2.25% [b]
· Rate of increase in salaries plus 1% - 2.75% RPI
· Rate of increase in pensions n/a Average RPI/CPI [d]
Assumed life expectancies on retirement at age 65:
· Males currently aged 65 23.9 yrs 21.7 yrs
· Females currently aged 65 25.5 yrs 24.4 yrs
· Males currently aged 45 25.9 yrs 23.0 yrs
· Females currently aged 45 27.3 yrs 25.8 yrs
Funding Ratios:
· Technical provisions basis 83% 87%
· Statutory Pension Protection Fund basis 64% 74%
· ‘Buy-out’ basis 51% 60%
Employer contribution rate (as % of pensionable salaries): 21.1% increasing to 21.4% on 19%
01/10/21
Effective date of next valuation: 31/03/2023 31/03/2022
**----- End of picture text -----**
- a. The discount rate (forward rates) for the USS valuation was:
Fixed interest gilt yield curve plus: Pre-retirement 2.75%, post-retirement 1.00%
34
Linacre College Notes to the financial statements For the year ended 31 July 2022
## 19 PENSION SCHEMES (continued)
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. 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 1.1% p.a. to 2030, reducing linearly by 0.1% p.a. to a long term difference of 0.1% p.a from 2040
- c. Pensions increases (CPI) for the USS valuation were:
d. Increases to pensions in payment for the OSPS valuation RPI inflation is derived from the geometric difference between the UK nominal gilt curve and the UK index-linked curve at were: 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% p.a. as at 31 March 2019).
For pension increases linked to inflation, a pension 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.
## Sensitivity of actuarial valuation assumptions
Surpluses or deficits which arise at future valuations may impact on the College’s future contribution commitment. The sensitivities regarding the principal assumptions used to measure the scheme liabilities are set out below:
**----- Start of picture text -----**
USS
Assumption Change in assumption Impact on USS liabilities
Initial pre-retirement discount rate increase by 0.25% decrease by £1.3bn
Post-retirement discount rate decrease by 0.25% increase by £2.8bn
CPI decrease by 0.1% decrease by £1.5bn
more purdent assumption ( reduce the adjustment
Life Expectancy to the base mortality table by 5%) increase by £1.2bn
Rate of mortality more prudent assumption (increase the annual increase by £0.6bn
mortality improvements long-term rates by 0.2%)
OSPS
Assumption Change in assumption Impact on OSPS technical provisions
Valuation rate of interest decrease by 0.25% increase by £45m
RPI increase by 0.25% increase by £40m
**----- End of picture text -----**
## Deficit Recovery Plans
In line with FRS 102 paragraph 28.11A, the College has recognised a liability for the contributions payable for the agreed deficit funding plan. The principal assumptions used in these calculations are tabled below
|||2021/22|||2020/21||
|---|---|---|---|---|---|---|
||OSPS||USS|OSPS||USS|
|Finish Date for Deficit Recovery Plan|30/01/28||30/04/38|30/01/28||31/03/28|
|Average Staff Number Increase|3%||0%|3%||0%|
|Average staff salary increase|1.69%||1.69%|1.50%||1.50%|
|Average discount rate over period|3.19%||3.34%|0.89%||0.89%|
|Effect of 0.5% change in discount rate|£5k||£20k|£6k||£4k|
|Effect of 1% change in staff growth|£4k||£5k|£11k||£2k|
A provision of £840k has been made at 31 July 2022 (2021 - £501k) for the present value of the estimated future deficit funding element of the contributions payable under these agreements, using the assumptions shown. The provision reduces as the deficit is paid off according to the pension recovery scheme.
## Pension charge for the year
The pension charge recorded by the College during the accounting period (excluding pension finance costs) was equal to the contributions payable after allowance for the deficit recovery plan as follows:
|Scheme
Universities Superannuation Scheme
University of Oxford Staff Pension Scheme
Total|2022
£'000
109
107
216|2021
£'000
101
89
190|
|---|---|---|
Included in other creditors are pensions contributions payable of £nil (2020: £nil).
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.
20 TAXATION
35
Linacre College Notes to the financial statements For the year ended 31 July 2022
## 21 RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH FLOW FROM OPERATIONS
|21
RECONCILIATION OF NET INCOMING RESOURCES TO
NET CASH FLOW FROM OPERATIONS|||||
|---|---|---|---|---|
|Net income/(expenditure)
Elimination of non-operating cash flows:
Investment income
(Gains)/losses in investments
Endowment donations
Depreciation
(Surplus)/loss on sale of fixed assets
Decrease/(Increase) in stock
Decrease/(Increase) in debtors
(Decrease)/Increase in creditors
(Decrease)/Increase in pension scheme liability
Net cash provided by (used in) operating activities
22
ANALYSIS OF CHANGES IN NET DEBT
Cash
Loans falling due after one year
23
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Total cash and cash equivalents
24
FINANCIAL COMMITMENTS
At 31 July the College had annual commitments under non-cancellable operating leases as f
Land and buildings
Other
Land and buildings
Other|At start of year
£'000
1,582
(16,047)
(14,465)
ollows:
< 1 year
£'000
49
6
55
< 1 year
£'000
49
6
55|Cash flows
£'000
6,120
(4,916)
1,204
2-5 years
£'000
210
8
218
2-5 years
£'000
210
14
224|2022
£'000
2,362
(1,588)
711
(2,040)
426
-
1
(44)
59
339
226
Non-Cash
Changes
£'000
-
-
-
2022
£'000
7,702
7,702
> 5 years
£'000
1,057
-
1,057
> 5 years
£'000
1,106
-
1,106|2021
£'000
8,794
(1,307)
(5,139)
(2,281)
384
5
4
(330)
557
-
687
At end of year
£'000
7,702
(20,963)
(13,261)
2021
£'000
1,582|
|||||1,582|
|||||2022
Total
£'000
1,316
14
1,330
2021
Total
£'000
1,365
20
1,385|
## 25 CAPITAL COMMITMENTS
The College had contracted commitments at 31 July for future capital projects totalling £744k (2021 - £0k).
## 26 RELATED PARTY TRANSACTIONS
The College is part of the collegiate University of Oxford. Material interdependencies between the University and the College arise as a consequence of this relationship. For reporting purposes, the University and the other Colleges are not treated as related parties as defined in FRS 102.
Members of the Governing Body, who are the trustees of the College and related parties as defined by FRS 102, who receive remuneration and facilities, do so as employees of the College. Details of these payments and reimbursed expenses as trustees are disclosed separately in these financial statements.
During the year Members of the Governing Body donated a total of £13,056 (2021: £10,096) to the College without conditions.
There were no other related party transactions.
- 27 CONTINGENT LIABILITIES
There were no contingent liabilties at 31 July 2022.
## 28 POST BALANCE SHEET EVENTS
None
36
Linacre College Notes to the financial statements For the year ended 31 July 2022
## 29 ADDITIONAL PRIOR YEAR COMPARATIVES
|a)
Consolidated Statement of Financial Activities
Year ended 31 July 2021
INCOME AND ENDOWMENTS FROM:
Charitable activities:
Teaching, research and residential
Donations and legacies
Investments
Investment income
Other income
Total income
EXPENDITURE ON:
Charitable activities:
Teaching, research and residential
Generating funds:
Fundraising
Investment management costs
Total Expenditure
Net Income/(Expenditure) before gains
Net gains/(losses) on investments
Net Income/(Expenditure)
Transfers between funds
Net movement in funds for the year
Fund balances brought forward
Funds carried forward at 31 July
b)
ANALYSIS OF MOVEMENTS ON FUNDS
Endowment Funds - Permanent
General Endowment
Scholarships and grants
Student Hardship
Fellows Support
Total Endowment Funds
Restricted Funds
Scholarships and grants
Student Hardship
Fellows Research
Facilities
Lectures
Total Restricted Funds
Unrestricted Funds
Fixed Asset Designated Fund
Other Designated funds
General funds
Pension reserve
Total Unrestricted Funds
Total Funds|At 1 August
2020
£'000
13,918
3,613
465
966
18,962
566
19
117
134
180
1,016
8,601
2,289
1,765
(501)
12,154
32,132|Unrestricted
Funds
£'000
3,169
105
1,003
113
4,390
4,086
120
9
4,215
175
1,392
1,567
-
1,567
12,154
13,721
Incoming
resources
£'000
6
2,246
-
29
2,281
1,469
21
52
5
5
1,552
518
734
3,138
-
4,390
8,223|Restricted
Funds
£'000
61
739
304
448
1,552
353
-
-
353
1,199
77
1,276
-
1,276
1,016
2,292
Resources
expended
£'000
-
-
-
-
-
(337)
(3)
(13)
-
-
(353)
(554)
137
(3,798)
-
(4,215)
(4,568)|Endowed
Funds
£'000
-
2,281
-
-
2,281
-
-
-
-
2,281
3,670
5,951
-
5,951
18,962
24,913
Transfers
£'000
-
-
-
-
-
(10)
-
10
-
-
-
(1,260)
1,063
197
-
-
-|2021
Total
£'000
3,230
3,125
1,307
561
8,223
4,439
120
9
4,568
3,655
5,139
8,794
-
8,794
32,132
40,926
Gains/
(losses)
£'000
2,515
899
80
176
3,670
42
-
-
20
15
77
-
1,392
-
-
1,392
5,139|2020
Total
£'000
2,936
269
924
266
4,395
3,848
164
10
4,022
373
(389)
(16)
-
(16)
32,148
32,132
At 31 July
2021
£'000
16,439
6,758
545
1,171
24,913
1,730
37
166
159
200
2,292
7,305
5,615
1,302
(501)
13,721
40,926|
|---|---|---|---|---|---|---|
37
Linacre College Notes to the financial statements For the year ended 31 July 2022
## 30 US Department of Education Financial Responsibility Supplemental Schedule
In satisfaction of its obligations to facilitate students’ access to US federal financial aid, the university is required, by the US Department of Education, to present, the following Supplemental Schedules in a prescribed format.
- The schedules have been:
- prepared under the historical cost convention, subject to the revaluation of certain fixed assets;
- prepared using United Kingdom generally accepted accounting practice, in accordance with Financial Reporting Standard 102 (FRS 102) and the Statement of Recommended Practice: Accounting for Further and Higher Education (2019 edition);
- · presented in pounds sterling.
This schedule has been compiled from the Section 2 Example Financial Statements included in the Federal Register/Vol. 84, No. 184 / Monday, September 23, 2019 / Rules and Regulations
**----- Start of picture text -----**
2022 2022 2021 2021
Expendable Net Assets Lines £'000 £'000 £'000 £'000
Statement of Financial Position - Net assets without Net assets 24
donor restrictions without donor
restrictions
13,473 13,721
Statement of Financial Position - Net assets with donor Net assets 30
restrictions with donor
restrictions 29,815 27,205
Statement of Financial Position - Related party Secured and 4
receivable and Related party note disclosure Unsecured
related party
receivable - -
Statement of Financial Position - Related party Unsecured 4
receivable and Related party note disclosure related party
receivable - -
Statement of Financial Position - Property, Plant and Property, plant 8
equipment, net and
equipment,
net (includes
Construction
in progress) 19,062 18,201
Note of the Financial Statements - Statement of Financial Property, plant FS Note line
Position - Property, plant and equipment - pre- and 8A
implementation equipment -
pre-
implementatio
n 9,770 10,032
Note of the Financial Statements - Statement of Financial Property, plant FS Note line
Position - Property, plant and equipment - post- and 8B
implementation with outstanding debt for original equipment -
purchase post-
implementatio
n with
outstanding
debt for
original
purchase 8,654 7,527.00
Note of the Financial Statements - Statement of Financial Property, plant FS Note line
Position - Property, plant and equipment - post- and 8D
implementation without outstanding debt for original equipment -
purchase post-
implementatio
n without
outstanding
debt for
original
purchase 638 642.00
Note of the Financial Statements - Statement of Financial Construction FS Note line
Position - Construction in progress in progress 8C - -
Statement of Financial Position - Lease right-of-use Lease right-of- 9
assets, net use asset, net
- -
Note of the Financial Statements - Statement of Financial Lease right-of- Excluded Line
Position - Lease right-of-use asset pre-implementation use asset pre- 9 Note Leases
implementatio
n
- -
Note of the Financial Statements - Statement of Financial Lease right-of- M9 Note
Position - Lease right-of-use asset post-implementation use asset post- Leases
implementatio
n
- -
Statement of Financial Position - Goodwill Intangible 10
assets - -
Statement of Financial Position -Other intangible assets Intangible assets 10
- -
Statement of Financial Position - Post-employment and Post- 17
pension liabilities employment
and pension
liabilities 840 501
Statement of Financial Position - Note Payable and Line Long-term 14,20,22
of Credit for long-term purposes (both current and long debt - for long
term) and Line of Credit for Construction in process term purposes
21,043 16,127
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38
Linacre College Notes to the financial statements For the year ended 31 July 2022
**----- Start of picture text -----**
Statement of Financial Position - Note Payable and Line Long-term M24,20,22,
of Credit for long-term purposes (both current and long debt - for long Note Debt A
term) and Line of Credit for Construction in process term purposes
pre-
implementatio
n
1,279 1,127
Statement of Financial Position - Note Payable and Line Long-term M24,20,22,
of Credit for long-term purposes (both current and long debt - for long Note Debt B
term) and Line of Credit for Construction in process term purposes
post-
implementatio
n
19,764 7,527.00
Statement of Financial Position - Note Payable and Line Line of Credit M24,20,22,
of Credit for long-term purposes (both current and long for Note Debt C
term) and Line of Credit for Construction in process Construction
in process - -
Statement of Financial Position - Lease right-of-use Lease right-of- 21
asset liability use asset
liability - -
Statement of Financial Position - Lease right-of-use Pre- Excluded Line
asset liability pre-implementation implementatio 21 Note
n right-of-use Leases
leases - -
Statement of Financial Position - Lease right-of-use Post- Line 21 Note
asset liability post-implementation implementatio Leases
n right-of-use
leases - -
Statement of Financial Position - Annuities Annuities with 25
donor
restrictions - -
Statement of Financial Position - Term endowments Term 26
endowments
with donor
restrictions - -
Statement of Financial Position - Life Income Funds Life income 27
funds with
donor
restrictions - -
Net assets 29
with donor
restrictions:
restricted in
Statement of Financial Position - Perpetual Funds perpetuity 27,854 24,913
2022 2022 2021 2021
Total Expenses and Losses Lines £'000 £'000 £'000 £'000
Statement of Activites - Total Operating Expenses (Total Total 43
from Statement of Activities prior to adjustments) expenses
without donor
restrictions -
taken directly
from
Statement of
Activities
5,744 4,215
Statement of Activities - Non-Operating (Investment Non-Operating (35),45,46,47,
return appropriated for spending), Investments, net of and Net 48,49
annual spending gain (loss), Other components of net Investment
periodic pension costs, Pension-related changes other (loss)
than net periodic pension, changes other than net
periodic pension, Change in value of split-interest
agreements and Other gains (loss) - (Total from
Statement of Activities prior to adjustments)
877 6,446
Statement of Activites - (Investment return appropriated Net (35),45
for spending) and Investments, net of annual spending, investment
gain (loss) losses 877 6,446
Net 47
Statement of Activities - Pension related changes other investment
than periodic pension losses 0 0
2021 2021 2020 2020
Modified Net Assets Lines £'000 £'000 £'000 £'000
24
Net assets
Statement of Financial Position - Net assets without without donor
donor restrictions restrictions 13,473 13,721
Net assets 30
Statement of Financial Position - total Net assets with with donor
donor restrictions restrictions 29,815 27,205
Statement of Financial Position - Goodwill Intangible 10
assets - -
Statement of Financial Position - Related party Secured and 4
receivable and Related party note disclosure Unsecured
related party
receivable - -
Statement of Financial Position - Related party Unsecured 4
receivable and Related party note disclosure related party
receivable - -
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39
Linacre College Notes to the financial statements For the year ended 31 July 2022
**----- Start of picture text -----**
2021 2021 2020 2020
Modified Assets Lines £'000 £'000 £'000 £'000
Statement of Financial Position - Total Assets Total Assets 12 66,297 58,621
Note of the Financial Statements - Statement of Financial Pre- Excluded Line
Position - Lease right-of-use asset pre-implementation implementatio 9 Note Leases
n right-of-use
leases - -
Statement of Financial Position - Lease right-of-use Pre- Excluded Line
asset liability pre-implementation implementatio 21 Note
n right-of-use Leases
leases - -
Statement of Financial Position - Goodwill Intangible 10
assets - -
Statement of Financial Position - Related party Secured and 4
receivable and Related party note disclosure Unsecured
related party
receivable - -
Statement of Financial Position - Related party Unsecured 4
receivable and Related party note disclosure related party
receivable - -
2021 2021 2020 2020
Net Income Ratio Lines £'000 £'000 £'000 £'000
Statement of Activities - Change in Net Assets Without Change in Net 55
Donor Restrictions Assets
Without Donor
Restrictions
-248 1,567
Statement of Activities - (Net assets released from Total Revenue 38, (35), 50
restriction), Total Operating Revenue and Other and Gains
Additions and Sale of Fixed Assets, gains (losses) 7,815 6,916
**----- End of picture text -----**
40