2021-07-31-accounts - The Queen's College, Oxford

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The Queen’s College Oxford

Annual Report and Financial Statements Year ended 31 July 2021

The Queen’s College, Oxford Annual Report and Financial Statements Contents

	Page
Governing Body, Officers and Advisers	2
Report of the Governing Body	5
Auditor’s Report	15
Statement of Accounting Policies	18
Consolidated Statement of Financial Activities	23
Consolidated and College Balance Sheets	24
Consolidated Statement of Cash Flows	25
Notes to the Financial Statements	26

The Queen’s College, Oxford Governing Body, Officers and Advisers Year ended 31 July 2021

MEMBERS OF THE GOVERNING BODY

The members of the Governing Body are the College’s charity trustees under charity law. The members of the Governing Body who served in office during the year or subsequently are detailed below.

		1	2	3	4	5	6
Dr C H Craig CBE (Provost)		●	●	●	●	●	●*
Prof W J Blair	Retired 30/09/2020
Prof P A Robbins		●
Dr R B Nickerson		●	●			●~	●*
Dr J H Davis	Retired 30/09/2021
Prof R A Taylor
Prof J A Langdale
Prof E J C Mellor						●~
Dr N J Owen
Prof O L Rees			●	●^
Mr N C Bamforth						●^
Dr K A Q O’Reilly		●
Dr C B Louth			●	●		●
Prof C J Norbury					●
Prof J P K Doye
Prof M J Buckley				●
Prof S Aldridge		●
Dr A Timms		●	●		●	●
Dr P Papazoglou
Dr L R Lonsdale
Prof R L Beasley
Dr C V Crowther
Prof C A O’Callaghan
Prof R N N Robertson
Prof L L A Phalippou		●
Dr D Meyer
Prof A M Gardner
Dr P Tammaro						●^

The Queen’s College, Oxford Governing Body, Officers and Advisers Year ended 31 July 2021

Dr L A Turnbull
Dr J L Guest				●
Prof R B Parkinson
Dr C M S Metcalf		●		●~
Prof S A Whidden				●		●
Dr W Kets	Resigned 31/08/2020
Dr D Prout
Prof J P Keating
Prof C E J Abell			●		●
Prof P C Mancall	Resigned 30/09/2020
Prof R S Weatherup				●
Dr S B Kelly
Prof J A Carillo de la Plata
Dr C P O’Brien	Elected 21/10/2020
Prof S J Leedham	Elected 11/11/2020
Dr M P Ono-George	Elected 20/10/2021
Prof P Griffin	Elected 10/11/2021

Fellows are listed in order of appointment to the Governing Body. Fellows elected to the Governing Body do not have voting rights during their first year and are therefore not considered to be trustees during that period.

Fellows served on committees during the year unless otherwise indicated.

The ~ symbol indicates that a Fellow has ceased membership of a committee since 31 July 2021. The ^ symbol indicates that a Fellow has joined a committee since 31 July 2021. The * symbol indicates non-voting membership of a committee.

During the year the activities of the Governing Body were carried out through committees. The current membership of the major committees is shown above for each Fellow.

1 Estates and Finance Committee
2 Domus Committee
3 Academic Committee
4 Development Committee
5 Personnel Committee
6 Remuneration Committee

Governing Body members of the Remuneration Committee who receive remuneration from the College are in attendance only at that committee and are not entitled to vote.

The external members of the Remuneration Committee are:

Mr A Beecroft, Mr C Doley, Mr D Gillard, Mr N Kitchen, Mr P Newton, Mr D Seymour (chairman), Ms Z Wright.

The Queen’s College, Oxford Governing Body, Officers and Advisers Year ended 31 July 2021

COLLEGE MANAGEMENT

The members of the Governing Body to whom day-to-day management is delegated are as follows:

Provost	Dr C H Craig
Bursar	Dr A Timms
Senior Tutor	Prof S A Whidden (Dr N J Owen to 30/09/2020)
Dean	Dr R B Nickerson
Tutor for Undergraduates	Dr C B Louth (Prof S A Whidden to 30/09/2020)
Tutor for Graduates	Prof M J Buckley
Tutor for Admissions	Dr J L Guest (Prof J P K Doye to 30/09/2020)

They are supported in particular by the following senior staff:

Domestic Bursar	Ms M L Bracey
College Accountant	Mrs K A Daniels (from 19/04/2021) (Mr G R Spankie to 26/02/2021)
Academic Administrator	Dr S McHugh
Director of Development	Dr J B Jacobs
Chaplain	The Revd K A M Price
Librarian	Dr M Shaw

COLLEGE ADVISERS

Investment property managers

Savills, Wytham Court, 11 West Way, Oxford, OX2 0QL

Lambert Smith Hampton, Enterprise House, Ocean Way, Southampton, SO14 3XB

Auditors

Critchleys Audit LLP, Beaver House, 23-38 Hythe Bridge Street, Oxford, OX1 2EP

Bankers

The Royal Bank of Scotland, Drummond House (EW) Branch, 1 Redheughs Avenue, Edinburgh, EH12 9JN

Solicitors

Womble Bond Dickinson (UK) LLP, Oceana House, 39-49 Commercial Road, Southampton, SO15 1GA Knights plc, Midland House, West Way, Botley, Oxford, OX2 0PH

College address

The Queen’s College, High Street, Oxford, OX1 4AW

Web site

www.queens.ox.ac.uk

The Queen’s College, Oxford Report of the Governing Body Year ended 31 July 2021

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

The global coronavirus pandemic continued to affect almost all aspects of the College’s affairs in the financial year ending July 2021. The College reopened in August 2020 following its closure during the first UK national ‘lockdown’, and successful preparations were made for the return of a large majority of the College’s students. Restrictions on social gatherings materially reduced the scope of the College’s residential activities in Michaelmas Term 2020, and the subsequent national lockdown beginning in the early new year of 2021 led to a Hilary Term that saw many UK students remaining at their family homes. Trinity Term 2021 saw a return of many students and much of the College’s life, and in July 2021 the Governing Body made plans for a subsequent return to near-normality by October 2021.

REFERENCE AND ADMINISTRATIVE INFORMATION

The Provost and Scholars of the Queen’s College in the University of Oxford, which is known as The Queen’s College (“the College”), is an eleemosynary, chartered charitable corporation aggregate. It was founded, under licence granted 18 January in the year 1341 by King Edward the Third, by Robert de Eglesfield, Clerk, Chaplain to Queen Philippa. The College registered with the Charity Commission on 23 June 2011 (registered number 1142553).

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 to the College, are given on pages 2 to 4.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing documents

The College is governed by its Statutes dated 13 February 2019.

Governing Body

The Governing Body is constituted and regulated in accordance with the College Statutes, the terms of which are enforceable ultimately by the Visitor, who is the Archbishop of York. The Governing Body appoints the Provost, Fellows, Lecturers, and such administrative and other officers as the Governing Body deems necessary from time to time.

New members of the Governing Body are elected in accordance with the College Statutes. Membership is extended to the Provost, all Fellows holding University Associate Professorships or statutory professorial chairs, and such other Fellows of the College as the Governing Body deems appropriate on the basis of the Statutes.

The Governing Body determines the ongoing strategic direction of the College and regulates its administration and the management of its finances and assets. It meets regularly under the chairmanship of the Provost and is advised by committees which it constitutes.

Recruitment and training of members of the Governing Body

New members of the Governing Body are recruited by competitive application for advertised vacancies and inducted into the workings of the College, including Governing Body policy and procedures, by meetings with College officers.

Members of the Governing Body are briefed annually by the Provost on current issues in the sector and updates to regulatory requirements. Student representatives attend the Governing Body for the unreserved part of the agenda, and representatives of the College’s Research and Career Development Fellows, plus some members of the senior staff, attend the Governing Body for unreserved and reserved items of the agenda.

Remuneration of members of the Governing Body and senior College staff

The members of the Governing Body are primarily teaching and research employees of the College or University and receive no remuneration or benefits from their trusteeship of the College. Those trustees who are 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, the voting members of which are currently Old Members of the College not in receipt of remuneration from the College. Where possible, remuneration is set in line with that awarded to the University’s academic staff or comparable College posts.

The Queen’s College, Oxford Report of the Governing Body Year ended 31 July 2021

The remuneration of senior College staff is set by the Governing Body with reference to scales applied to academic-related staff in the University.

Organisational management

The members of the Governing Body meet ten times a year. The work of developing their policies and monitoring the implementation of these is carried out by six primary committees:

The Estates and Finance Committee includes the Provost, Bursar, two former holders of the office of Estates Bursar, and four further Fellows, and meets nine times per year. The College Accountant attends meetings. The role of the Committee is to examine the management of the College’s property and assets and all matters connected with the finances of the College.
The Domus Committee includes the Provost, Bursar, Dean, Tutor for Undergraduates, IT Fellow, Steward of Common Room, and two elected Fellows, and meets six times per year. The Chaplain, Domestic Bursar, IT Officer, and Conference and Functions Officer attend meetings together with student representatives and a representative of the College’s Research and Career Development Fellows. The Committee oversees the use of facilities, routine maintenance and refurbishment, accommodation and catering, IT provision, and conference and trading activities.
The Academic Committee includes the Provost, Senior Tutor, Tutor for Undergraduates, Tutor for Graduates, Tutor for Admissions, and at least two further Fellows, together with two student representatives and a representative of the College’s Research and Career Development Fellows. It meets six times per year. The Academic Administrator attends meetings. It oversees the academic activities of the College and in particular makes recommendations to the Governing Body in relation to academic appointments, strategy, feedback, and governance.
The Development Committee consists of the Provost, Bursar, two further Fellows, a number of Old Members, and a representative of the College’s Research and Career Development Fellows. It meets three times per year. The Director of Development and Old Members’ Officer attend meetings. Its role is to maintain good relationships with Old Members of the College and to oversee the College’s fundraising activities.
The Personnel Committee consists of the Provost, Bursar, Senior Tutor, Equalities Officer, and two further Fellows. The Domestic Bursar attends meetings. Its role is to consider personnel matters that relate to the non-academic employees of the College.
The Remuneration Committee meets to consider the remuneration of members of the Governing Body. The Committee consists of seven members elected by the Governing Body from among the Honorary, Emeritus, and Professorial Fellows, and Old Members of the College who are not members of the Governing Body. It is attended by the Provost and another Fellow who acts as secretary. No voting member of the committee may draw a stipend from the College.

The day-to-day running of the College is delegated to the Provost, supported by College Officers and other senior staff. The Provost normally chairs all meetings of the Governing Body and its committees. In 2020–21 the Governing Body met online throughout the year, and its committees typically met online while the strictest coronavirus restrictions were in force and in person at other times; business continued to be transacted effectively. For some periods in the year, the Governing Body once again delegated limited emergency authority to the Provost and Bursar to take urgent necessary decisions arising from the pandemic, and a ‘Core Group’ of key College Officers continued to assist in the management of the day-to-day response. These measures were exercised as minimally as possible, so that the College could continue to react nimbly to the pandemic while ensuring that the Governing Body and its primary committees were able to play their characteristic fully engaged role in the management of the College.

Group structure and relationships

The College also administers many trusts and specific funds, as outlined in notes 19 and 20 to the financial statements, and has two wholly owned non-charitable subsidiaries: The Queen’s College Oxford Trading Limited (“QCOTL”; a company registered in England and Wales, number 07192549) and The Queen’s College Oxford Developments Limited (“QCODL”; a company registered in England and Wales, number 09668661).

The Queen’s College, Oxford Report of the Governing Body Year ended 31 July 2021

QCOTL primarily provides letting of the College facilities for conference and other events when not in use by the College. Any profits are donated to the College through Gift Aid.

QCODL provides design and development services in respect of the College’s buildings. Any profits are donated to the College through Gift Aid. The College had previously intended to wind up this company but instead has chosen to make the company dormant for the time being, as several unexpired warranties relating to a building project are held by it.

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.

OBJECTIVES AND ACTIVITIES

Charitable Objects and Aims

The College’s objects are to maintain a College for the advancement of education and research and the advancement of religion.

The College’s aims for the public benefit are:

(1) The advancement of education and research for the benefit of the public, in a range of subject areas as determined from time to time by its Governing Body, including through: (a) the provision of teaching, supervision, accommodation and other forms of support for undergraduate and graduate students; and (b) the provision of a Library which shall include works for consultation by qualified scholars.
(2) The advancement of religion for the benefit of the public, including through the provision of a Chapel affiliated with the Church of England and through the holding of services and associated events.

The Governing Body is mindful of the long-standing requirement to provide public benefit and of the disclosure requirements of the Charities Act 2011. In this connection the Governing Body has monitored closely the general and supplemental guidance produced by the Charity Commission, in particular its public benefit guidance on advancement of education and on fee-charging.

Activities and objectives of the College and subsidiaries

(1) To carry out education and research activities jointly with the University. This involves payment of salaries and the provision of infrastructure including office space and administrative support.
(2) To supplement the education provided jointly with the University with tutorial teaching provided by Collegeonly appointed teachers, and by provision of its own Library and IT facilities, and welfare, social, cultural and recreational facilities to enable each of its students to realise their academic and personal potential to its fullest extent.
(3) To supplement the research activities it promotes jointly with the University by providing College-only funded research Fellowships and by providing an environment for interaction between researchers. In addition it provides funding in support of their research to members of the College, and provides facilities for visiting researchers, including access to a valued research Library.
(4) To admit undergraduate and graduate students without any restriction subject only to satisfaction of publicised academic criteria. Tuition fees are regulated on a national basis. The College accommodates almost all of its undergraduates and roughly one half of its graduates. For such costs and other costs Home/EU undergraduate students are eligible for student loans under the national scheme and for Oxford Bursaries on a means-tested basis.
(5) To provide various forms of financial assistance to both undergraduate and graduate students through prizes, scholarships, and grants to allow them to pursue projects which further their studies, and to provide targeted support in cases of hardship.
(6) To support a number of access-related activities, provided to ensure that the information needed to apply for admission to the University is disseminated as widely as possible.
(7) To provide and support a Chapel affiliated with the Church of England and through the holding of daily services and associated events that are open to the public. The employment of a Chaplain facilitates the

The Queen’s College, Oxford Report of the Governing Body Year ended 31 July 2021

above and provides ministry to all students without regard to religious affiliation. The College maintains a Chapel Choir which complements and enhances the liturgy.

The aim of The Queen’s College Oxford Trading Limited is to provide financial support for the achievement of the College’s aims as set out above.

The aim of The Queen’s College Oxford Developments Limited is to provide design and development services in respect of the College’s buildings.

In 2020–21 the College admitted 109 new undergraduate students and 82 postgraduate students (including three PGCE students), bringing the total numbers in residence to 385 and 239 respectively, plus two registered visiting students. Nine new part-time College Lecturers were appointed to supplement the teaching provided by Fellows. One Junior Research Fellow, and two Career Development Fellows were appointed. Two graduate students were appointed as new residential Junior Deans.

College representatives ran a series of events to address pupils from groups of schools to explain the admissions procedure and the benefits of studying at Oxford. The College supported other colleges and University departments with further events. The College’s commitment to improving access to higher education for all, and in particular for those from backgrounds without a strong tradition of university education, was affirmed by the resources allocated to Schools Liaison and Outreach, where a total of £53,817 was spent in the year. This work continued remotely for much of the year, as coronavirus restrictions prevented open days and schools visits from taking place. In addition to its regular activity on this front, the College was particularly pleased to announce the launch of a partnership with The Access Project, which funds dedicated staff who work in schools to support disadvantaged students to get to the best universities. This partnership will strengthen the College’s historic links to the north west of England, where undergraduate offer rates (across the University of Oxford as a whole) remain the lowest of all English regions.

The College believes that the best academic work takes place in a balanced environment; it supported undergraduate sport, music and other non-academic activities during the year. £107,683 was spent in support of all sports, £2,412 in support of music (in addition to support of the Chapel Choir), and £32,837 on the student common rooms.

The Library was open to readers from Michaelmas Term 2020. It returned to 24-hour opening in the Long Vacation 2021. It purchased new resources as required in support of the students at a cost of £22,373.

Members of the College were very active in research in a wide range of fields. The College supported this work with research grants and allowances to a total of £86,565. This contribution makes a significant difference to the final quality of work that can be achieved in many disciplines.

22 choral services were held with a congregation, including a service of Confirmation with the College’s Visitor, the Most Reverend and Right Honourable Stephen Cottrell, Archbishop of York. A further 20 choral services were livestreamed from the Chapel without a congregation present. In Hilary Term there were no choral services in the Chapel, but a series of eight video services was released. The Chaplain is much involved in the pastoral care of the College.

Public benefit

The College remains committed to the aim of providing public benefit in accordance with its founding principles.

It admits as students those who have the highest potential for benefitting from the education provided by the College and University and recruits as academic staff those who are able to contribute most to the academic excellence of the College, regardless of financial, geographical, ethnic, social or religious background, or age.

It provides subsidised accommodation and meals to students at reasonable rates. It offers accommodation to all of the undergraduate body and to roughly half of the graduates, including all of those in their first year of study. In order to assist undergraduates entitled to financial support the College provides funds to the Oxford Bursary Scheme. For the academic year 2020–21 the number of awards made to Queen’s students was 60, the total value of which was £146,925. 19 Queen’s students were awarded Crankstart (formerly Moritz-Heyman) Scholarships, providing bursaries of £75,600 in total and fee reductions of £30,000. In addition the College awarded 5 Scholarships, each with a value of £450, 49 Junior Scholarships, each with a value of £300, and 22 Exhibitions, each with a value of £150, to undergraduates on academic merit, without reference to background.

The Queen’s College, Oxford Report of the Governing Body Year ended 31 July 2021

To support the costs of graduate students the College made a number of Scholarship awards, including a growing number of fully funded studentships for both fees and living costs, to a total value of £363,032. The College was also particularly pleased to commit to support the University of Oxford’s Black Academic Futures scheme, which provides financial support to black students who wish to pursue graduate study at Oxford. In addition the College operates a targeted Hardship Scheme, which makes awards to both undergraduates and graduates up to a total value of £15,000. In 2020–21 the College was particularly mindful of the impact of the pandemic on its students.

The College provides academic support to students through book and equipment grants and an academic travel grant scheme which together made awards totalling £25,143 in 2020–21.

The College operates an outreach programme to raise educational aspiration and attract outstanding applicants who might not otherwise have considered applying to the College. It employs a full-time Schools Liaison and Outreach Officer and the programme involves visits by schools to the College, open days, and guidance and information to applicants and teachers.

During term-time the Chapel hosts daily morning and evening services on weekdays (the evening service taking the form of Choral Evensong on Wednesdays and Fridays), and Holy Communion and Choral Evensong on Sundays. All services are open to the public; Choral Evensong, in particular, is well attended thanks in part to the outstanding quality of the Chapel Choir.

The College hosts a substantial programme of musical performances that are well attended by the public, including weekly organ and instrumental recitals. In addition the College hosts, free of charge, a number of concerts by Oxford-based ensembles, including the now-celebrated Oxford Lent Concerts, the proceeds from which are donated to charities.

As well as providing an excellent service to current members of the College, the Library holds an outstanding collection of pre-1800 books and manuscripts, many of which are unique. 24 external readers consulted 48 items from the special collections. The underground extension to the Library, which opened in 2017, has continued to be a popular and well-used facility.

The College maintains a sports ground, primarily for the use of its members, but which is also used extensively by local clubs, especially during the vacations.

ACHIEVEMENTS AND PERFORMANCE

91 undergraduates passed final examinations in June 2021, including 38 with first class honours, and during the course of the 2020–21 academic year 28 graduates completed doctoral research degrees. A further 28 completed graduate taught courses, five completed the Clinical Medicine (BM BCh) degree, and three completed Postgraduate Certificates in Education. The College is particularly proud of the achievements of its students given the considerable disruption to their learning and assessment caused by the pandemic.

In the financial year 2020–21 the College received £2,085,672 in gifts from Old Members and other benefactors. The College is very grateful for this generous support. Total income received in donations—and the sum spent on fund-raising—was in line with expectations.

The College is voluntarily registered with the Fundraising Regulator and has committed to follow its Code of Fundraising Practice and the Fundraising Promise. The College’s fund-raising is carried out by employees, overseen at a strategic level by a Development Committee consisting of trustees of the College together with a number of representatives of the Old Membership of the College. The College prioritises its long-term relationship with Old Members over short-term considerations, and always endeavours to raise funds in a respectful and moderated manner. Any Old Member who does not wish to be contacted for fund-raising purposes can easily opt out of such communications, and all relevant staff are trained to respect such preferences. The College received no complaints about its fundraising activity in 2020–21.

In 2020–21 the College completed the replacement of the roof of its Chapel and Hall. Work also began on the refurbishment of the basement bathrooms on the eastern range of Front Quad.

QCOTL undertook the letting of College facilities to various clients. Turnover was severely affected by the pandemic, which resulted in the cancellation of almost all activities. The College expects this income stream to recover in due course, and is working carefully with its clients to maintain relationships in the meantime. QCODL did not trade in the year and, as noted above, is now dormant.

The Queen’s College, Oxford Report of the Governing Body Year ended 31 July 2021

FINANCIAL REVIEW

The College’s financial performance during the year was, in the circumstances, strong. The effects of the coronavirus pandemic caused income to remain at the depressed level seen in 2019–20, reflecting the continuing loss of some student residential income and much commercial residential income. Student residential income is expected to recover in 2021–22 as the College expects to have students in residence throughout the year, as normal; commercial trading income is expected to recover when the pandemic recedes. In addition, like many other commercial property landlords, the College faced significant challenges in collecting rents in periods when many businesses were forced to close, and it continued to agree exceptional terms (including lease restructurings, rent deferrals, and rent waivers) with a number of tenants.

The College claimed £302,560 from the Coronavirus Job Retention Scheme in 2020–21. The College topped up the furlough payments so that all furloughed staff received 100% of their normal salary. Total expenditure was well within budget, reflecting savings consequent to the reduction in College activity during most of the year.

Net expenditure before gains was £2,654,000. The increase in net expenditure compared with last year was primarily caused by a decrease in donations and legacies and investment income, together with increased expenditure on the College’s charitable activities. This expenditure notably included the transfer of a charitable trust to Linacre College, Oxford (further information is provided in the notes to the financial statements).

The endowment assets produced a total return of 13.7%, comprising income of 1.0% and a capital gain of 12.7%. This result comprises strong growth in equity investments and satisfactory growth in agricultural land values set against a significant negative revaluation of the College’s commercial property portfolio. The fall in the value of the latter appears to be largely a consequence of the material disruption of this sector by the pandemic. At the end of the year the funds of the College had increased from £371,762,000 to £419,718,000 net of long-term borrowings of £34,862,000.

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. The policy has been tested by the pandemic, and in the view of the Governing Body it has been demonstrated to be highly effective.

Total funds of the College and its subsidiaries at the year-end amounted to £419,718,000 (2020: £371,762,000). This includes endowment capital of £325,523,000 (2020: £288,836,000) and unspent restricted income funds totalling £11,857,000 (2020: £9,725,000). Free reserves at the year-end amounted to £10,542,000 (2020: £8,091,000), representing retained unrestricted income reserves excluding an amount of £32,426,000 (2020: £33,194,000) for the book value of tangible fixed assets less associated funding arrangements. Designated funds at the year-end consisted of £39,353,000 (2020: £31,825,000) for the maintenance and refurbishment of the College’s buildings, to be spent as required and usually within 10 years.

The statuses of the College’s funds, including free and designated reserves, are described in notes 19 and 20 to the financial statements. The Governing Body, advised by the Estates and Finance Committee, has determined the reserves to be sufficient and in line with the reserves policy.

Going concern

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

The Queen’s College, Oxford Report of the Governing Body Year ended 31 July 2021

Risk management

The College has processes which operated throughout the financial year to identify, evaluate and manage the principal risks and uncertainties faced by the College and its subsidiaries in undertaking their activities. When it is not able to assess risks using internal resources, the College takes advice from experts external to the College with specialist knowledge. Policies, procedures, and the risk register are reviewed by the Estates and Finance Committee, with input from other relevant College committees. In addition, the Domestic Bursar and domestic heads of sections meet regularly to review health and safety and personnel matters. The College has instituted a continuous programme of monitoring and improvement in health and safety matters, with advice regularly provided by suitably qualified personnel. Training courses and other forms of career development are available, when requested, to members of staff to enhance their skills in risk-related areas.

The Governing Body, which has ultimate responsibility for managing any risks faced by the College, has reviewed the processes in place for managing risk and the principal identified risks to which the College and its subsidiaries are exposed, and has concluded that adequate systems are in place to manage these risks. In particular, the Governing Body has identified and reviewed a register of risks in the following areas: governance, finances, academic matters, and operations. Specific risks considered include: governance processes (including conflicts of interests), relations with the University of Oxford (including divergences in strategic priorities), compliance risks (including safeguarding), the financial health of the College (including the future of the USS pension scheme), major capital projects, personnel matters (including the challenges posed by the high housing costs of Oxford), the condition of College buildings, health and safety, and business continuity.

In 2020-21, aside from the implications of the pandemic considered below, the Governing Body continued to pay particular attention to various risks in the valuation of the USS pension scheme. At the date of this report the valuation has concluded (but the University and College Union is balloting its members on the possibility of industrial action) and the College awaits further developments. The College continues to hold reservations about the wisdom of conducting a valuation in what were extraordinary circumstances, and remains particularly concerned by the changes in the rules of the scheme that prevent employers from leaving it. The Governing Body’s view, however, remains that an attractive defined-benefit pension is an important component of the overall remuneration package that is offered to academic employees.

The College continued to keep in mind the risks posed by the pandemic. A ‘Core Group’ of key College Officers had previously been formed to oversee the management of the College’s day-to-day response to the crisis, and it continued to make regular reports to the Governing Body. Key financial systems continued to work well regardless of whether staff were working remotely or in College. The College ensured that its pastoral and welfare-related support of students continued (including in person where possible); financial support was made available where appropriate. Students who could not practicably return home in vacations were accommodated in the College where possible; students who were self-isolating or quarantining were supported in a variety of ways. Teaching and assessment to some extent moved in line with the University of Oxford’s approach to the pandemic, albeit with a strong College preference for in-person activity where possible.

The Bursar provided several briefings to the Governing Body on the financial implications of the pandemic. The College’s budgeting process was successfully concluded and the Estates and Finance Committee once again surveyed a long-term forecast outlining the College’s financial sustainability, which was judged to be satisfactory. The Governing Body was, as last year, pleased to see that the effects of the pandemic, even in the more difficult scenarios, could most probably be mitigated by restricting expenditure growth to CPI in the shortterm.

In 2020–21 the College saw the return of students after the reopening of the main site. Additional cleaning staff had been hired, and sanitisation products were provided more widely around the College. A policy on facecoverings was adopted, and various appropriate measures were taken to enable ‘social distancing’ across the College’s premises. The College planned its reopening on the basis that it would do so to the fullest extent possible, while taking reasonable steps to protect staff and students. It also adopted the principles of thinking for itself, and being honest and open about risk. These principles enabled it to react carefully and thoughtfully to the demands of the crisis, and to ensure that it could provide an educational and residential experience to students that was as close as reasonably possible (in the circumstances) to normal. A further principle adopted by the College was one of kindness, noting that individually and collectively every member of the College and its staff had suffered a considerable shock and would need support, of various kinds, to cope with the disruption to normality.

The Queen’s College, Oxford Report of the Governing Body Year ended 31 July 2021

The Governing Body’s view is that its approach to the pandemic has continued to enable the College to operate very effectively and successfully in unprecedented circumstances. The Governing Body will continue to monitor the risks posed specifically by the pandemic, and will continue to respond in a considered and flexible manner.

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 over the long term;
producing a consistent and sustainable level of income to support expenditure; and
delivering these objectives within acceptable levels of risk.

To meet these objectives the College’s investments as a whole are managed on a total return basis, maintaining diversification across a range of asset classes in order to produce an appropriate balance between risk and return. In line with this approach, the College statutes allow the College to invest permanent endowments to maximise the related total return and to make available for expenditure each year an appropriate proportion of the unapplied total return. The initial value of the trust for investment and the initial value of the unapplied total return were established on 25 June 2011 and take effect from 1 August 2002. These values were established by examination, to the extent reasonably possible, of the terms (where known) of historical benefactions to the College.

The investment strategy, policy, and performance are monitored by the Estates and Finance Committee. At the year end, the College’s long term investments, combining the securities and property investments, totalled £400,901,000.

Under the total return accounting basis, it is the Governing Body’s policy to extract as income a percentage of the total endowment value. The figure depends on the split between property and securities and in the current year was 3.23% (plus the costs of running the endowment). To smooth and moderate the amounts withdrawn, income is calculated using the average of the year-end endowment values in each of the last five years, corrected for inflation.

The Governing Body will keep the level of income withdrawn under review to balance the needs and interests of current and future beneficiaries of the College’s activities.

FUTURE PLANS

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

to work with the University of Oxford to identify, encourage applications from, and offer places to, prospective students solely on the basis of their academic excellence and potential to benefit from the opportunities provided by the College;
to provide the best possible environment for the scholarly pursuit of knowledge in the arts, sciences, humanities, and social sciences, including the provision of individual or small-group teaching and supervision and the support of academic research, and to support and encourage members of the College in ways that will help them to achieve their full academic potential;
to increase support for members of the College who would otherwise be unable to engage fully in scholarly pursuit as a consequence of financial disadvantage or disability;
to ensure the long-term financial security of the College, and the integrity of its residential and educational facilities.

Specific development plans have been agreed, where necessary, for the separate departments within the College to ensure that the College continues to enhance its ability to provide a first-class education in an academic environment rooted in research. In the year 2021–22 the College will:

continue to make efforts to improve the academic results attained by its undergraduates;
continue to consider the future of the Florey Building and the overall student accommodation strategy;

The Queen’s College, Oxford Report of the Governing Body Year ended 31 July 2021

continue to work to reduce the College’s carbon ‘footprint’;
hope to begin the construction of a new, fully accessible Porters’ Lodge;
undertake a consultation with staff on terms and conditions of employment;
continue to implement the recommendations of a working group on race, diversity, and access matters;
launch a scheme which will lead to the appointment of Distinguished Visitors, increasing the College’s engagement with people of distinction (both academic and otherwise) from outside of its community.

The Queen’s College, Oxford Report of the Governing Body Year ended 31 July 2021

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 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 1 December 2021 and signed on its behalf by:

Dr C H Craig Provost

The Queen’s College, Oxford

Independent auditor’s report to the Trustees of The Queen’s College, Oxford

Opinion

We have audited the financial statements of The Queen’s College, Oxford (the “Charity”) for the year ended 31 July 2021 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 2021 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 Trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, 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.

The Queen’s College, Oxford Independent auditor’s report to the Trustees of The Queen’s College, Oxford

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 Trustees

As explained more fully in the Statement of Accounting and Reporting Responsibilities (set out on page 14), the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as 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 trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

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

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 Trustees 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.

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

The Queen’s College, Oxford

Independent auditor’s report to the Trustees of The Queen’s College, Oxford

making enquiries of Trustees 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 Trustees 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 Trustees, 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 Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Critchleys Audit LLP Statutory Auditor Oxford

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

The Queen’s College, Oxford Statement of Accounting Policies Year ended 31 July 2021

1. Scope of the financial statements

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

2. Basis of accounting

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

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

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

3. Accounting 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 carries investment property at fair value in the balance sheet, with changes in fair value being recognised in the income and expenditure section of the SoFA. Independent valuations are obtained to determine fair value at the balance sheet date.

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.

With respect to the next financial year, the most significant areas of uncertainty that affect the carrying value of assets held by the College are the level of investment return, the performance of investment markets, and the USS pension scheme deficit.

4. Income recognition

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

a. Income from fees, Office for Students support and other charges for services

Fees receivable, Office for Students 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

The Queen’s College, Oxford Statement of Accounting Policies Year ended 31 July 2021

their fulfilment is wholly within the control of the College and it is probable that the specified conditions will be met.

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

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

Donations, grants and legacies 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.

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

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

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

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

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

6. Leases

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

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.

7. Tangible fixed assets

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

The Queen’s College, Oxford Statement of Accounting Policies Year ended 31 July 2021

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.

8. 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 Building improvements 10 - 50 years Equipment 4 - 10 years

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

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

9. Heritage Assets

The College has a number of assets, including items of art and historic texts that meet the definition of heritage assets under the SORP. The College has chosen to hold heritage assets at cost, but because of their age and in many cases unique nature, reliable historical cost information is not available for these assets and could not be obtained except at disproportionate expense. However, the depreciated historic cost of these items is considered to be now immaterial.

10. Investments

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

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

Investments such as hedge funds and private equity funds which have no 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.

11. Other financial instruments

a. Cash and cash equivalents

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

b. Debtors and creditors

Debtors and creditors receivable or payable within one year of the reporting date are carried at their at transaction price. Debtors and creditors that are receivable or payable in more than one year (which are

The Queen’s College, Oxford Statement of Accounting Policies Year ended 31 July 2021

not classified as concessionary loans) and not subject to a market rate of interest are measured at the present value of the expected future receipts or payment discounted at a market rate of interest.

12. Stocks

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

13. 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.

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 except when deferred and initially credited or charged in ‘other recognised gains and losses’ as qualifying cash flow hedges.

14. ‘Total return’ investment accounting

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

15. Fund accounting

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

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

Restricted funds comprise gifts, legacies and grants where the donors have specified that the funds are to be used for particular purposes of the College. 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.

16. Pension costs

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

The Queen’s College, Oxford Statement of Accounting Policies Year ended 31 July 2021

contribution schemes. As a result, the amount charged to the profit and loss account represents the contributions payable to each scheme. Since the College has entered into agreements (the recovery plans) that determine how each employer within the schemes will fund the overall deficit, the College recognises a liability for the contributions payable that arise from the agreements (to the extent that they relate to the deficit) with related expenses being recognised through the profit and loss account.

The Queen's College, Oxford Consolidated Statement of Financial Activities For the year ended 31 July 2021

Unrestricted funds £'000 4,349 27 - 553 8,102 304	Restricted funds £'000 - - 118 102 1,642 -	Endowed funds £'000 - - 1,967 4,024 (9,744) -	2021 Total £'000 4,349 27 2,085 4,679 - 304	2020 Total £'000 4,373 284 5,118 5,923 - 371
13,335 9,758 171 65 150	1,862 942 - - 28	(3,753) 1,890 - - 1,094	11,444 12,590 171 65 1,272	16,069 11,405 127 407 1,414
10,144	970	2,984	14,098	13,353
3,191	892	(6,737)	(2,654)	2,716
5,946	1,240	43,424	50,610	(13,652)
9,137	2,132	36,687	47,956	(10,936)
-	-	-	-	-
9,137 73,201	2,132 9,725	36,687 288,836	47,956 371,762	(10,936) 382,698
82,338	11,857	325,523	419,718	371,762

The Queen's College, Oxford Consolidated and College Balance Sheets As at 31 July 2021

2021 Group £'000 32,426 - 83,919 316,982	2020 Group £'000 33,194 - 90,970 260,643	2021 College £'000 32,426 - 83,919 316,982	2020 College £'000 33,194 - 90,970 260,643
433,327	384,807	433,327	384,807
438 2,458 21,971	404 5,025 19,333	438 2,506 21,852	404 4,953 19,316
24,867 1,982	24,762 1,142	24,796 1,928	24,673 1,144
22,885 456,212 34,863	23,620 408,427 34,851	22,868 456,195 34,863	23,529 408,336 34,851
421,349 1,631	373,576 1,814	421,332 1,631	373,485 1,814
419,718	371,762	419,701	371,671
325,523 11,857 71,779 10,559	288,836 9,725 65,019 8,182	325,523 11,857 71,779 10,542	288,836 9,725 65,019 8,091
419,718	371,762	419,701	371,671

The financial statements were approved and authorised for issue by the Governing Body of The Queen's College, Oxford on 1 December 2021

Trustee:

The Queen's College, Oxford Consolidated Statement of Cash Flows For the year ended 31 July 2021

Notes Net cash used in operating activities 26 Cash flows from investing activities Dividends, interest and rents from investments Purchase of property, plant and equipment 9 Proceeds from sale of investments 11, 12 Purchase of investments 11 Net cash provided by investing activities Cash flows from financing activities Receipt of endowment Net cash provided by financing activities Change in cash and cash equivalents in the reporting period 28 Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	2021 £'000 (8,371)	Restated * 2020 £'000 (8,691)
	4,883 (19) 1,543 (221)	5,363 (6) 2,051 (17,000)
	6,186	(9,592)
	4,823	2,134
	4,823	2,134

	2,638	(16,149)
	19,333	35,482
	21,971	19,333

Restatement relates to the reclassification of the movement in debtors between those relating to operating activities, dividends, interest and rents from investments and receipt of endowment

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

1 INCOME FROM CHARITABLE ACTIVITIES Teaching, research and residential Unrestricted funds Tuition fees - UK and EU students Tuition fees - overseas students Other Office for Students support Other academic income College residential income Total teaching, research and residential Total income from charitable activities	2021 £'000 1,446 1,067 298 131 1,407 4,349 4,349	2020 £'000 1,363 854 250 90 1,816
		4,373

		4,373

The above analysis includes £2,844k received from the University of Oxford from publicly accountable funds under the CFF scheme (2020: £1,625k).

Under the terms of the undergraduate student support package offered by the University of Oxford to students from lower income households, the College share of the fees waived amounted to £30k (2020: £0k). These are not included in the fee income reported above.

2 DONATIONS AND LEGACIES Donations and legacies Restricted funds Endowed funds 3 INCOME FROM OTHER TRADING ACTIVITIES Subsidiary company trading income 4 INVESTMENT INCOME Unrestricted funds Agricultural rent Commercial rent Equity dividends Bank interest Restricted funds Agricultural rent Commercial rent Equity dividends Bank interest Endowed funds Agricultural rent Commercial rent Equity dividends Bank interest Total Investment income	2021 £'000 118 1,967 2,085 2021 £'000 27 27 2021 £'000 80 231 242 - 553 15 42 45 - 102 584 1,679 1,759 2 4,024 4,679	2020 £'000 128 4,990
		5,118
		2020 £'000 284
		284
		2020 £'000 67 313 268 9
		657
		12 56 48 2
		118
		524 2,453 2,098 73
		5,148

		5,923

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

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 Expenditure on generating funds Direct staff costs allocated to: Fund-raising Trading expenditure Other direct costs allocated to: Fund-raising Trading expenditure Investment management costs Support and governance costs allocated to: Trading expenditure Investment management costs Total expenditure on generating funds Total expenditure	2021 £'000 5,361 5,419 1,810 12,590 119 18 52 33 138 14 1,134 1,508 14,098	2020 £'000 4,896 4,909 1,600
		11,405
		88 96 39 236 166 75 1,248
		1,948

		13,353

The 2020 expenditure of £13,353k represented £10,973k from unrestricted funds, £919k from restricted funds and £1,461k from endowed funds. Teaching, research and residential expenditure includes a £1.586m transfer of funds to Linacre College (see note 19 & 20)

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 £348k (2020 - £305k).

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

6 ANALYSIS OF SUPPORT AND GOVERNANCE COSTS

Financial administration Human resources IT Depreciation Loan interest payable Other finance charges Governance costs	Generating Funds £'000 373 - 4 - 771 - - 1,148	Teaching and Public Research Worship Heritage £'000 £'000 £'000 585 - - 81 - - 308 - - 787 - - - - - 28 - - 22 - - 1,811 - -	2021 Total £'000 958 81 312 787 771 28 22
			2,959

Financial administration Human resources IT Depreciation Loan interest payable Other finance charges Governance costs	Generating Funds £'000 432 - 31 - 860 - - 1,323	Teaching and Public Research Worship Heritage £'000 £'000 £'000 533 47 197 793 - 12 18 1,600 - -	2020 Total £'000 965 47 228 793 860 12 18
			2,923

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

Governance costs comprise: Auditor's remuneration - audit services	2021 £'000 22 22	2020 £'000 18
		18

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.

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

7 GRANTS AND AWARDS During the year the College funded research awards and bursaries to students from its restricted and unrestricted funds as follows: Unrestricted funds Grants to individuals: Scholarships, prizes and grants Bursaries and hardship awards Graduate studentships Total unrestricted Restricted funds Grants to individuals: Scholarships, prizes and grants Bursaries and hardship awards Graduate studentships Total restricted Total grants and awards	2021	2020
	£'000 7 96 98 201 40 6 243 289 490	£'000 46 105 82
		233
		64 1 194
		259

		492

The figure included above represents the cost to the College of the Oxford Bursary scheme. Students of this college received £147k (2020: £144k). Some of those students also received fee waivers amounting to £30k (2020: £45k).

The above costs are included within the charitable expenditure on teaching and research.

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

8 STAFF COSTS The aggregate staff costs for the year were as follows. Salaries and wages Social security costs Pension costs: Defined benefit schemes Pension deficit recovery plan adjustments (Note 23) Other benefits The average number of employees of the College, excluding trustees, on a headcount basis was as follows. Tuition and research College residential Fundraising Support Total The average number of employed College trustees during the year was as follows. Associate Professor -- TF University and non-TF Associate Professor -- TF College Other teaching and research Other Total	2021 £'000 5,273 452 848 (196) 68 6,445 2021 34 73 5 38 150 20 9 1 2 32	2020 £'000 5,062 455 805 (452) 68
		5,938
		2020 55 75 4 40
		174
		18 9 1 2
		30

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

The number of employees (excluding the College trustees) during the year whose gross pay and benefits (excluding employer NI and pension contributions) fell within the following bands was:

£60,001-£70,000 The number of the above employees with retirement benefits accruing was as follows: In defined benefits schemes	2 2	3
		3

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

9 TANGIBLE FIXED ASSETS

Group Leasehold land and buildings £'000 Cost At start of year - Additions - At end of year - Depreciation and impairment At start of year - Depreciation charge for the year - At end of year - Net book value At end of year - At start of year - College Leasehold land and buildings £'000 Cost At start of year - Additions - Disposals - At end of year - Depreciation and impairment At start of year - Charge for the year - At end of year - Net book value At end of year - At start of year -	Freehold land and buildings £'000 41,452 19 41,471 8,318 759 9,077 32,394 33,134 Freehold land and buildings £'000 41,452 19 - 41,471 8,318 759 9,077 32,394 33,134	Fixtures, fittings and equipment £'000 158 - 158 98 28 126 32 60 Fixtures, fittings and equipment £'000 158 - - 158 98 28 126 32 60	Total £'000 41,610 19
			41,629
			8,416 787
			9,203
			32,426
			33,194
			Total £'000 41,610 19 -
			41,629
			8,416 787
			9,203
			32,426
			33,194

The College has long-held historic assets which are used in the course of the College’s teaching and research activities. These principally comprise the listed buildings on the College site. Because of their age and, in many cases, unique nature, reliable historical cost information is not available for these assets and could not be obtained except at disproportionate expense. In the opinion of the trustees the depreciated historical cost of these assets is now immaterial.

10 HERITAGE ASSETS

The College has long-held heritage assets. These comprise works of art, ancient books and manuscripts and other treasured artefacts. Because of their age and, in many cases, unique nature, reliable historical cost information is not available for these assets and could not be obtained except at disproportionate expense. In the opinion of the trustees the depreciated historical cost of these assets is now immaterial.

There have been no material acquisitions or disposals of heritage assets in recent years and there is no standing policy to acquire or dispose of such assets. Heritage assets are conserved and managed by College officers and relevant members of staff, who take external professional advice when judged necessary. The College maintains catalogues of its heritage assets. Access to heritage assets, subject to risk assessment, is granted to those for whom they are the necessary subject of legitimate academic research.

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

11 PROPERTY INVESTMENTS

Group Valuation at start of year Additions and improvements at cost Disposals Revaluation gains/(losses) in the year Valuation at end of year College Valuation at start of year Additions and improvements at cost Disposals Revaluation gains/(losses) in the year Valuation at end of year	Agricultural £'000 47,665 221 (1,074) 2,240 49,052 Agricultural £'000 47,665 221 (1,074) 2,240 49,052	Commercial £'000 42,945 - - (8,145) 34,800 Commercial £'000 42,945 - - (8,145) 34,800	Other £'000 360 - (149) (144) 67 Other £'000 360 - (149) (144) 67	2021 Total £'000 90,970 221 (1,223) (6,049) 83,919 2021 Total £'000 90,970 221 (1,223) (6,049) 83,919	2020 Total £'000 91,419 - (17) (432)
					90,970
					2020 Total £'000 91,419 - (17) (432)
					90,970

A formal valuation of the agricultural properties was prepared by Savills as at 31 July 2018 and updated as at 31 July 2021.

A formal valuation of the commercial and other properties was prepared by Lambert Smith Hampton as at 31 July 2018 and updated as at 31 July 2021.

12 OTHER INVESTMENTS

All investments are held at fair value.

Group investments Valuation at start of year New money invested Amounts withdrawn Increse / (decrease) in value of investments Group investments at end of year College investments at end of year Group investments comprise: Held outside Held in 2021 Held outside the UK the UK Total the UK £'000 £'000 £'000 £'000 Equity investments - 282,155 282,155 - Alternative and other investments - 34,827 34,827 - Total group investments - 316,982 316,982 -	2021 £'000 260,643 - (320) 56,659 316,982 316,982 2021 Total £'000 282,155 34,827 316,982	2020 £'000 258,897 17,000 (2,034) (13,220)
		260,643
		260,643
		2020 Total £'000 228,737 31,906
		260,643

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

13 PARENT AND SUBSIDIARY UNDERTAKINGS

The College holds 100% of the issued share capital in The Queen's College Oxford Trading Limited ("QCOTL"), a company providing letting of the College facilities for conference and other events when not in use by the College, and 100% of the issued share capital in The Queen's College Oxford Developments Limited ("QCODL"), a company providing design and development services in respect of the College's buildings.

The results and the assets and liabilities of the parent and subsidiaries at the year end were as follows:

				Subsidiary	Subsidiary
Income Expenditure Donation to College under gift aid Investment gains Net income for the year Total assets Total liabilities Net funds at the end of year	£'000 11,417 (14,088) 91 50,610 48,030 458,123 (38,422) 419,701 Parent College	£'000 27 (10) (91) - (74) 126 (109) 17 QCOTL	£'000 - - - - - - - - QCODL	£'000 - - - - - - - - Name 3	£'000 - - - - Name 4
					-
					- -
					-

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

14 STATEMENT OF INVESTMENT TOTAL RETURN

The trustees have adopted a duly authorised policy of total return accounting for the College investment returns with effect from 1 August 2002. The investment return to be applied as income is based on the return on the classes of investments held and the average of the year-end values of the relevant investments in each of the last five years, adjusted for inflation. The preserved (frozen) value of the invested endowment capital represents its open-market value in 2002 together with all subsequent endowments valued at date of gift.

2021 At the beginning of the year: Gift component of the permanent endowment Unapplied total return Expendable endowment Total endowments Movements in the reporting period: Gift of endowment funds Investment return: total investment income Investment return: realised and unrealised gains and losses Less: investment management costs Other transfers Total Unapplied total return allocated to income in the reporting period Expendable endowments transferred to income Net movements in reporting period At end of the reporting period: Gift component of the permanent endowment Unapplied total return Expendable endowment Total endowments 2020 At the beginning of the year: Gift component of the permanent endowment Unapplied total return Expendable endowment Total endowments Movements in the reporting period: Gift of endowment funds Investment return: total investment income Investment return: realised and unrealised gains and losses Less: investment management costs Other transfers Total Unapplied total return allocated to income in the reporting period Expendable endowments transferred to income Net movements in reporting period At end of the reporting period: Gift component of the permanent endowment Unapplied total return Expendable endowment Total endowments	Unapplied Trust for total investment return Total £'000 £'000 £'000 - 91,413 91,413 176,320 176,320 91,413 176,320 267,733 1,162 1,162 3,724 3,724 40,169 40,169 (1,012) (1,012) (1,500) (218) (1,718) (338) 42,663 42,325 (9,135) (9,135) - - (9,135) (9,135) (338) 33,528 33,190 - 91,075 - 91,075 209,848 209,848 91,075 209,848 300,923 Unapplied Trust for total investment return Total £'000 £'000 £'000 86,908 86,908 192,012 192,012 86,908 192,012 278,920 4,505 4,505 4,771 4,771 (10,977) (10,977) (1,140) (1,140) (78) (78) 4,505 (7,424) (2,919) (8,268) (8,268) - - (8,268) (8,268) 4,505 (15,692) (11,187) - 91,413 - 91,413 176,320 176,320 91,413 176,320 267,733 Permanent endowment Permanent endowment	Expendable endowment £'000 21,103 21,103 805 300 3,255 (82) (172) 4,106 (609) (609) 3,497 24,600 24,600 Expendable endowment £'000 21,873 21,873 485 377 (867) (90) (159) (254) (516) (516) (770) 21,103 21,103	2021 Total endowments £'000 91,413 176,320 21,103
			288,836 1,967 4,024 43,424 (1,094) (1,890)
			46,431 (9,744) -
			(9,744)
			36,687 91,075 209,848 24,600
			325,523
			2020 Total endowments £'000 86,908 192,012 21,873
			300,793 4,990 5,148 (11,844) (1,230) (237)
			(3,173) (8,784) -
			(8,784)
			(11,957) 91,413 176,320 21,103
			288,836

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

15 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 Legacy received after year end Amounts falling due after more than one year: Loans CREDITORS: falling due within one year Trade creditors Amounts owed to group undertakings Taxation and social security Accruals and deferred income Other creditors CREDITORS: falling due after more than one year Bank loans Senior notes	2021 Group £'000 953 211 - 81 218 - 995 2,458 2021 Group £'000 370 - 149 1,062 401 1,982 2021 Group £'000 14,995 19,868 34,863	2020 Group £'000 1,020 161 - 65 86 2,856 837 5,025 2020 Group £'000 128 - 145 547 322 1,142 2020 Group £'000 14,989 19,862 34,851	2021 College £'000 948 211 56 81 215 - 995 2,506 2021 College £'000 370 - 147 1,010 401 1,928 2021 College £'000 14,995 19,868 34,863	2020 College £'000 948 161 - 65 86 2,856 837
				4,953
				2020 College £'000 128 132 134 428 322
				1,144
				2020 College £'000 14,989 19,862
				34,851

16 CREDITORS: falling due within one year

17 CREDITORS: falling due after more than one year

The bank loans and senior notes are unsecured.

A loan for £8m was arranged and drawn down in November 2017. This is due for repayment in 2022. A second bank loan for £7m is due for repayment in 2038.

On 24 September 2015 the College issued £20m of senior notes, with a coupon of 3.41% payable semi-annually in arrears, maturing on 24 September 2045. The fees for the notes are being amortised over the term of the notes.

All loans are included at amortised cost as they are classified as basic financial instruments.

18 PROVISIONS FOR LIABILITIES AND CHARGES

There are no provisions for liabilities and charges requiring disclosure.

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

19 ANALYSIS OF MOVEMENTS ON FUNDS

At 1 August 2020 £'000 183,224 28,224 56,053 232 13,636 3,612 3,855 288,836 288,836 4,421 161 1,247 1,446 2,450	Income £'000 2,548 1,556 780 3 190 861 53 5,991 5,991 62 2 17 139	Expenditure £'000 (693) (137) (1,900) (1) (134) (20) (99) (2,984) (2,984) (346) (1) (580) (43)	Transfers £'000 (6,302) (954) (1,871) (8) (387) (174) (48) (9,744) (9,744) 680 8 954	Gains £'000 27,381 4,376 8,377 35 2,038 641 576 43,424 43,424 661 24 186 232 137	At 31 July 2021 £'000 206,158 33,065 61,439 261 15,343 4,920 4,337
					325,523

					325,523
					5,478 194 1,824 1,774 2,587
9,725	220	(970)	1,642	1,240	11,857

9,725	220	(970)	1,642	1,240	11,857
8,091 33,194 31,825	4,764 442	(7,934) (787) (1,322)	4,431 19 3,652	1,190 4,756	10,542 32,426 39,353
73,110	5,206	(10,043)	8,102	5,946	82,321
91	27	(101)	-	-	17
73,201	5,233	(10,144)	8,102	5,946	82,338
371,762	11,444	(14,098)	-	50,610	419,718

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

At 1 August 2019 £'000 193,935 26,874 57,838 273 14,435 3,356 4,082 300,793 300,793 4,295 179 978 1,394 2,504	Income £'000 3,309 3,464 2,498 4 246 547 70 10,138 10,138 74 3 17 152	Expenditure £'000 (791) (136) (290) (1) (120) (18) (105) (1,461) (1,461) (391) (1) (488) (39)	Transfers £'000 (5,759) (778) (1,695) (35) (369) (120) (34) (8,790) (8,790) 608 (15) 779	Losses £'000 (7,470) (1,200) (2,298) (9) (556) (153) (158) (11,844) (11,844) (165) (5) (39) (61) (54)	At 31 July 2020 £'000 183,224 28,224 56,053 232 13,636 3,612 3,855
					288,836

					288,836
					4,421 161 1,247 1,446 2,450
9,350	246	(919)	1,372	(324)	9,725
9,350	246	(919)	1,372	(324)
					9,725
6,873 33,981 31,459	4,865 536	(7,259) (793) (2,486)	3,885 6 3,527	(273) (1,211)	8,091 33,194 31,825
72,313	5,401	(10,538)	7,418	(1,484)	73,110
242	284	(435)	-	-	91
72,555	5,685	(10,973)	7,418	(1,484)	73,201
382,698	16,069	(13,353)	-	(13,652)	371,762

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

20 FUNDS OF THE COLLEGE DETAILS

The following is a summary of the origins and purposes of each of the funds:

Endowment funds: Permanent Corpus permanent endowment A consolidation of gifts and donations where income, but not capital, can be used for the general purposes of the College Endowment funds A consolidation of gifts and donations whose donor has specified that income but not capital may only be used for particular purposes within the College objects Trusts within College objects Capital element of gifts and donations held in formal trusts where income but not capital may be used for particular purposes within the College objects. The property of one trust was transferred during the year to Linacre College, Oxford, pursuant to a deed of variation between the College and the original settlors of the trust and Linacre College. Trusts outside College objects Capital element of gifts and donations held in formal trusts where income but not capital may be used for particular purposes falling outside College objects Expendable Corpus expendable endowment A consolidation of gifts and donations where either income, or income and capital, can be used for the general purposes of the College, but will normally be held for the long term Donations fund A consolidation of gifts and donations where either income, or income and capital, can be used for the general purposes of the College, but will normally be held for the long term Pension fund A fund held for the payment of certain pensions where income and capital can be used for the purpose but will normally be held for the long term Restricted funds: Trusts within College objects Accumulated income from gifts and donations held in formal trusts which may be used for particular purposes within the College objects Trusts outside College objects Accumulated income from gifts and donations held in formal trusts which may be used for particular purposes outside the College objects Endowment funds Accumulated income from gifts and donations whose donor has specified that income but not capital may only be used for particular purposes within the College objects Specific funds A consolidation of gifts and donations where the donor has specified they may only be used for particular purposes within the College objects Specific balances A consolidation of gifts and donations where the donor has specified they may only be used for particular purposes within the College objects and where the investment is held in particular assets specified by the donor Unrestricted funds: General funds General unrestricted funds represent accumulated income from the College's activities and other sources that are available for the general purposes of the College Fixed assets reserve An allocation from general funds to represent the accumulated net book value of the College fixed assets Designated funds Building fund Unrestricted funds allocated by the Fellows for the future costs of maintenance and refurbishment of College buildings

21 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 32,426 6,617 24,783 22,885 (4,373) 82,338 Unrestricted funds £'000 33,194 5,267 14,951 23,620 (3,831) 73,201	Restricted funds £'000 - 2,140 10,607 - (890) 11,857 Restricted funds £'000 - 2,106 8,426 - (807) 9,725	Endowment funds £'000 - 75,162 281,592 - (31,231) 325,523 Endowment funds £'000 - 83,597 237,266 - (32,027) 288,836	2021 Total £'000 32,426 83,919 316,982 22,885 (36,494)
				419,718
				2020 Total £'000 33,194 90,970 260,643 23,620 (36,665)
				371,762

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

22 TRUSTEES' REMUNERATION

The trustees of the College comprise the Governing Body, primarily Fellows who are teaching and research employees of the College and who sit on Governing Body by virtue of their employment.

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. Where possible, these salaries are paid on external scales and often are joint arrangements with the University of Oxford.

The Remuneration Committee meets to consider remuneration of members of the Governing Body. The Committee consists of six members elected by the Governing Body from among the Honorary, Emeritus and Professorial Fellows, and Old Members of the College who are not members of the Governing Body. It has been attended by the Provost and Dr R B Nickerson, who acts as secretary. No voting member of the Committee may draw a stipend or any other form of benefit from the College.

Trustees comprise Fellows holding University Lecturerships or statutory professorial chairs, and such other Fellows of the College as the Governing Body deems appropriate on the basis of the Statutes.

There were two trustees, Dr C H Craig (Provost) and Dr A Timms (Bursar), who worked full-time on management.

Some trustees are eligible for College housing schemes. Some may be eligible for a housing allowance which is disclosed within the salary figures below. Nine trustees live in houses partly funded by loans from the College. Details of these loans are disclosed in note 31.

Some trustees receive additional allowances for additional work carried out as part-time College officers. These amounts are included within the remuneration figures below.

Remuneration paid to trustees

Range £1 - £4,999 £5,000 - £9,999 £10,000 - £14,999 £30,000 - £34,999 £35,000 - £39,999 £40,000 - £44,999 £45,000 - £49,999 £55,000 - £59,999 £60,000 - £64,999 £65,000 - £69,999 £70,000 - £74,999 £75,000 - £79,999 £80,000 - £84,999 £85,000 - £89,999 £105,000 - £109,999 £115,000 - £119,999 £120,000 - £124,999 £165,000 - £169,999 Total	Number of trustees £ 1 4,570 4 27,154 2 25,287 3 100,609 8 288,366 5 218,394 - - 1 57,374 1 62,398 2 134,694 2 145,199 2 155,461 - - 1 88,831 - - 1 117,396 - - 1 167,969 34 1,593,702 Gross remuneration, taxable benefits and pension contributions 2021	Number of trustees £ 1 3,857 3 20,289 1 10,537 1 34,925 7 252,256 4 169,662 2 90,648 1 57,705 1 62,703 4 276,630 1 73,675 - - 2 169,165 - - - - 1 117,321 - - 1 166,682 30 1,506,055 2020 Gross remuneration, taxable benefits and pension contributions	Number of trustees £ 1 3,857 3 20,289 1 10,537 1 34,925 7 252,256 4 169,662 2 90,648 1 57,705 1 62,703 4 276,630 1 73,675 - - 2 169,165 - - - - 1 117,321 - - 1 166,682 30 1,506,055 2020 Gross remuneration, taxable benefits and pension contributions
			1,506,055

7 (2020: 5) 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

No trustee claimed expenses for any work performed in discharge of duties as a trustee.

See also note 31 (Related Party Transactions).

Key management remuneration

The total remuneration paid to key management personnel, including Employers National Insurance, was £1728k (2020: £1636k).

Under the terms of the Charities SORP all trustees are regarded as key management personnel. Their names and roles are detailed on pages 2 and 3 of this report.

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

23 PENSION SCHEMES

The College participates in two principal pension schemes for its staff – the Universities Superannuation Scheme (USS) and the University of Oxford Staff Pension Scheme (OSPS). The assets of each scheme are held in separate trustee-administered funds. USS and OSPS are contributory mixed benefit schemes (i.e. they provide benefits on a defined benefit basis – based on length of service and pensionable salary – and on a defined contribution basis – based on contributions into the scheme). Both are multi-employer schemes and the College is unable to identify its share of the underlying assets and liabilities relating to defined benefits of each scheme on a consistent and reasonable basis. Therefore, in accordance with the accounting standard FRS 102 paragraph 28.11, the College accounts for the schemes as if they were defined contribution schemes. As a result, the amount charged to the Income and Expenditure Account represents the contributions payable to the schemes in respect of the accounting period. In the event of the withdrawal of any of the participating employers in USS or OSPS, the amount of any pension funding shortfall (which cannot be otherwise recovered) in respect of that employer will be spread across the remaining participating employers and reflected in the next actuarial valuation of the scheme.

Schemes accounted for under FRS 102 paragraph 28.11 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:

	USS	OSPS
Date of valuation:	31/03/2018	31/03/2019
Date valuation results published:	16/09/2019	19/06/2020
Value of liabilities:	£67.3bn	£848m
Value of assets:	£63.7bn	£735m
Funding surplus / (deficit):	(£3.6bn)	(£113m)
Principal assumptions:
Discount rate	CPI - 0.73% to CPI +2.52%a	Gilts +0.5%- 2.25%b
Rate of increase in salaries	n/a	RPI
Rate of increase in pensions	CPIc	Average RPI/CPI d
Assumed life expectancies on retirement at age 65:
Males currently aged 65	24.6 yrs	21.7 yrs
Females currently aged 65	26.1 yrs	24.4 yrs
Males currently aged 45	26.6 yrs	23.0 yrs
Females currently aged 45	27.9 yrs	25.8 yrs
Funding Ratios:
Technical provisions basis	95%	87%
Statutory Pension Protection Fund basis	76%	74%
‘Buy-out’ basis	56%	60%
	21.1%
Employer contribution rate (as % of pensionable salaries):	increasing to 23.7% on	19%
	01/10/21
Effective date of next valuation:	31/03/2020	31/03/2022
a. The discount rate (forward rates) for the USS valuation was:
Years 1-10: CPI + 0.14% reducing linearly to CPI – 0.73%
Years 11-20: CPI + 2.52% reducing linearly to CPI + 1.55% by year 21
Years 21 +: CPI + 1.55%

b. The discount rate for the OSPS valuation was: Pre-retirement: Equal to the UK nominal gilt curve at the valuation date plus 2.25% p.a. at each term. Post-retirement: Equal to the UK nominal gilt curve at the valuation date plus 0.5% p.a. at each term.

c. Pensions increases (CPI) for the USS valuation were:

Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves, less 1.3% p.a.

d. Increases to pensions in payment for the OSPS valuation were:

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

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

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

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

23 PENSION SCHEMES (Continued)

Sensitivity of actuarial valuation assumptions

Surpluses or deficits which arise at future valuations may impact on the company’s future contribution commitment. The sensitivities regarding the principal assumptions used to measure the scheme liabilities are set out below:

Assumption	USS	Impact on USS liabilities
	Change in assumption
Initial discount rate	increase by 0.1%	decrease by £1.2bn
Asset values	reduce by 10%	increase by £6.4bn
RPI – CPI spread	increase by 0.1%	decrease by £0.7bn
Rate of mortality	more prudent assumption	increase by £1.6bn
	(mortality rated down by a	further
	year)
Assumption	OSPS	Impact on OSPS liabilities
	Change in assumption
Valuation rate of interest	decrease by 0.25%	increase by £45m
RPI	increase by 0.25%	Increase by £40m

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 principle assumptions used in these calculations are tabled below:

assumptions used in these calculations are tabled	below:
		2021			2020
	OSPS		USS	OSPS		USS
Finish Date for Deficit Recovery Plan	30/01/2028		31/03/2028	30/01/2028		31/03/2028
Average staff number increase	0%		0%	0%		0%
Average staff salary increase	2%		2%	2%		2%
Average discount rate over period	0.89%		0.89%	0.74%		0.63%
Effect of 0.5% change in discount rate	11k		39k	48k		52k
Effect of 1% change in staff growth	1k		2k	2k		3k

A provision of £1,631k has been made at 31 July 2021 (2020: £1,815k) 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	2021 £'000 179 426 605	2020 £'000 38 315
		353

Included in other creditors and accruals are pension contributions payable of £Nil (2020: £Nil).

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

24 TAXATION

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

No liability to corporation tax arises in the College's subsidiary companies because the directors of these companies have indicated that they intend to make donations each year to the College equal to the taxable profits of the company under the Gift Aid scheme. Accordingly no provision for taxation has been included in the financial statements.

25 FINANCIAL INSTRUMENTS

All loans are included at amortised cost as they are classified as basic financial instruments, as shown in note 17.

26 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 received Depreciation (Decrease)/ Increase in stock (Increase) in debtors Increase / (Decrease) in creditors (Decrease) in pension scheme liability Net cash used in operating activities	2021 Group £'000 47,956 (4,679) (50,610) (1,967) 787 (34) (194) 553 (183) (8,371)	Restated* 2020 Group £'000 (10,936) (5,923) 13,652 (4,990) 793 6 (391) (449) (453)
		(8,691)

Restatement relates to the reclassification of the movement in debtors between those relating to operating activities, dividends, interest and rents from investments and receipt of endowment

27 ANALYSIS OF CHANGES IN NET DEBT

Cash Loans falling due after more than one year Senior Notes due after more than one year 28 ANALYSIS OF CASH AND CASH EQUIVALENTS Cash at bank and in hand Total cash and cash equivalents 29 FINANCIAL COMMITMENTS At 31 July the College had annual commitments under non-cancellable operating leases as follows: Land and buildings expiring within one year expiring between two and five years	At start of year 19,333 (14,989) (19,862) (15,518)	Cash flows 2,638 (6) (6) 2,626 2021 £'000 21,971 21,971 2021 £'000 - 412 412	At end of year 21,971 (14,995) (19,868)
			(12,892)
			2020 £'000 19,333
			19,333
			2020 £'000 - 407
			407

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

30 CAPITAL COMMITMENTS

At the year end the College had no capital commitments (2020: £Nil).

31 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, receive remuneration and facilities as employees of the College. Details of these payments and reimbursed expenses as trustees are disclosed separately in these financial statements.

The following trustees had loans outstanding from the College at the start and / or end of the year:

	2021	2020
	£'000	£'000
Abell C	276	289
Buckley MJ	47	55
Doye JPK	28	33
Gardner A	84	90
Lonsdale LR	36	45
Louth CB	6	11
Metcalf C	204	211
Meyer D	80	88
Rees OL	72	79
Whidden S	241	-

No interest is charged on the above loans, which are secured on the trustees' homes. This results in a benefit in kind which is included within the remuneration disclosed in note 22.

All loans are normally repayable over a period which is the lower of the repayment period of the matching external mortgage or the number of years until the Fellow attains the normal USS pensionable age.

Certain trustees made donations to the College during the year, totalling £1,300 (2020: £1,600).

32 CONTINGENT LIABILITIES

There are no contingent liabilities at the year end.

33 POST BALANCE SHEET EVENTS

USS Pension valuation

Since the year end, following the completion of the 2020 actuarial valuation, a new dual rate schedule of contributions has been agreed with an effective date of 1 October 2021. Recalculating the USS provision on the basis of these calculations would result in an increased obligation to fund the deficit of £2,740k, an increase of £1,769k.

A further change to deficit recovery contributions will become applicable under the 2020 valuation if the Joint Negotiating Committee deed on benefit changes has not been executed by 28 February 2022. In this scenario, higher deficit recovery payments will commence from 1 October 2022 at 3% and then increase every 6 months until they reach 20% at 1 October 2025. They remain at this level until 31 July 2032. Negotiations continue and an increase to this level is considered remote. If the Schedule of Contributions remains unchanged, the College's Financial Statements for the year ended 31 July 2022 will reflect these changes to the provision, subject to any other changes in financial and operational assumptions.

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

34 ADDITIONAL PRIOR YEAR COMPARATIVES

34 a PRIOR YEAR COMPARATIVE - Consolidated Statement of Financial Activities For the year ended 31 July 2020

INCOME AND ENDOWMENTS FROM: Charitable activities: Teaching, research and residential Other trading income Donations and legacies Investments Investment income Total return allocated to income Other Income: Coronavirus Job Retention Scheme Total income EXPENDITURE ON: Charitable activities: Teaching, research and residential Generating funds: Fund-raising Trading expenditure Investment management costs Total Expenditure Net income / (expenditure) before (losses) Net (losses) on investments Net (expenditure) / income Transfers between funds Net movement in funds for the year Fund balances brought forward Funds carried forward at 31 July	Unrestricted funds £'000 4,373 284 - 657 7,390 371 13,075 10,283 127 407 156 10,973 2,102 (1,484) 618 28 646 72,555 73,201	Restricted funds £'000 - - 128 118 1,394 - 1,640 891 - - 28 919 721 (324) 397 (22) 375 9,350 9,725	Endowed funds £'000 - - 4,990 5,148 (8,784) - 1,354 231 - - 1,230 1,461 (107) (11,844) (11,951) (6) (11,957) 300,793 288,836	2020 Total £'000 4,373 284 5,118 5,923 - 371
				16,069 11,405 127 407 1,414
				13,353
				2,716
				(13,652)
				(10,936)
				-
				(10,936) 382,698
				371,762

The Queen's College, Oxford Notes to the financial statements For the year ended 31 July 2021

34 ADDITIONAL PRIOR YEAR COMPARATIVES (Continued)

34 b PRIOR YEAR COMPARATIVE - Property Investments (Current year Note 11)

Group Valuation at start of year Additions and improvements at cost Disposals Revaluation gains/(losses) in the year Valuation at end of year College Valuation at start of year Additions and improvements at cost Disposals Revaluation gains/(losses) in the year Valuation at end of year	Agricultural £'000 44,617 - (22) 3,070 47,665 Agricultural £'000 44,617 - (22) 3,070 47,665	Commercial £'000 46,100 - - (3,155) 42,945 Commercial £'000 46,100 - - (3,155) 42,945	Other £'000 702 - 5 (347) 360 Other £'000 702 - 5 (347) 360	2020 Total £'000 91,419 - (17) (432)
				90,970
				2020 Total £'000 91,419 - (17) (432)
				90,970

A formal valuation of the agricultural properties was prepared by Savills as at 31 July 2018 and updated as at 31 July 2020.

A formal valuation of the commercial and other properties was prepared by Lambert Smith Hampton as at 31 July 2018 and updated as at 31 July 2020.

34 c PRIOR YEAR COMPARATIVE - Parent and Subsidiary Undertakings (Current year Note 13)

The results and the assets and liabilities of the parent and subsidiaries at the year end were as follows:

Income Expenditure Donation to College under gift aid Investment gains Net income for the year Total assets Total liabilities Net funds at the end of year	£'000 15,785 (13,162) 244 (13,652) (10,785) 409,480 (37,809) 371,671 Parent College	£'000 284 (193) (244) - (153) 221 (130) 91 QCOTL	£'000 - 2 - - QCODL
			2
			- -
			-