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2023-07-31-accounts

Charity Registration No. 1143479

Worcester College Annual Report and Financial Statements Year ended 31 July 2023

WORCESTER COLLEGE

Annual Report and Financial Statements Contents

Governing Body, Officers and Advisers 2 - 5
Report of the Governing Body 6 - 16
Auditor’s Report 17 - 20
Statement of Accounting Policies 21 - 25
Consolidated Statement of Financial Activities 26
Consolidated and College Balance Sheets 27
Consolidated Statement of Cash Flows 28
Notes to the Financial Statements 29 - 46

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WORCESTER COLLEGE Governing Body, Officers and Advisers Year ended 31 July 2023

MEMBERS OF THE GOVERNING BODY

The Members of the Governing Body are the College’s charity trustees under charity law. The members of the Governing Body, who served in office as trustees during the financial year, or subsequently up to the date of approval of these financial statements, are listed below together with details for those who also held College Officerships:

Governing Body Fellow College Officers In year
change		 (1) (2) (3) (4) (5) (6)
Mr David Isaac Provost ● ● ● ● ● ●
Dr Simon Cowan Vice Provost To 13/3/23 ● ● ● ● ●
Professor Kate Tunstall
Professor Donal Nolan
Dr Nir Vulkan Garden Master From 1/9/22
Professor Andrew Carr ●
Professor Ben Morgan ● ●
Dr John Parrington
Dr Richard Earl Vice Provost From
13/3/23		 ● ● ● ● ●
Dr Scott Scullion Dean of Degrees
Professor Deborah Cameron To 30/9/23
Professor Josephine Quinn ● ●
Professor Andreas Willi
Professor Julian Roberts To 31/8/22
Professor EndreSüli ●
Professor Grant Ritchie ●
Professor Robert Harris
Dr Paul Azzopardi Dean ● ● ●
Dr Mark Howarth To 31/8/22
Dr David Steinsaltz Sustainability Fellow ● ●
Dr Conrad Leyser
Professor Laura Ashe
Professor Gabriel Stylianides
Professor Kim Dora
Dr Antonis Papachristodoulou
Dr Michael Peramatzis
Dr Zofia Stemplowska
Dr Afifi al-Akiti ● ●

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WORCESTER COLLEGE Governing Body, Officers and Advisers Year ended 31 July 2023

Governing Body Fellow College Officers In year
change		 (1) (2) (3) (4) (5) (6)
Professor Sadie Creese
Dr James Edwards ●
Professor Andrew Stephen ●
Mr Mark Bainbridge Fellow Librarian
Dr Alexander Sturgis
Dr Peta Fowler
Dr Alice Violet
Professor Andrzej Murawski ●
Dr Robert Smith ●
Professor Hauke Marquardt
Dr Merve Emre To 31/7/23
Dr Marchella Ward To 9/9/22
Dr Lisa Wedding ●
Dr Michael Mayo ● ●
Dr Laura Quick
Dr Leah Trueblood ●
Dr Natalia Waights Hickman Tutor for Graduates ●
Professor Tsilly Dagan ●
Ms Kate Foley Director of Development To 13/10/22
Professor Iain McCulloch ●
Dr Paulo Savaget
Professor Daniel Neyland Senior Tutor, Tutor for
Admissions and Tutor for
Graduates		 To 9/9/22
Dr Wouter Mostert ●
Professor Patricia Clavin ●
Professor Emmanuel Breuillard
Mr Michael Huggins Finance and Estates Bursar ● ● ● ● ● ●
Professor Jennifer Walshe
Mr Simon Boddie ●
Leila Ullrich
Ronelle Roth ●
Elizabeth Emerson Senior Tutor To 21/12/22 ● ●
Helen Parish Senior Tutor ● ● ●

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WORCESTER COLLEGE Governing Body, Officers and Advisers Year ended 31 July 2023

Governing Body Fellow College Officers In year
change		 (1) (2) (3) (4) (5) (6)
Viola Kerr Development Director From 9/5/23 ●
Richard D’Arcy From 1/6/23
Weston Struwe From 1/8/23

During the year the activities of the Governing Body were carried out through six principal committees. The membership of these committees during the academic year 2022/23 is shown above for each Fellow.

The Joint Consultative Committee comprising membership from Governing Body, senior staff and Officers of the Middle and Junior Common Rooms discusses matters affecting Middle and Junior Common Room members. Such matters include (but are not limited to) the domestic management of the College, food service provision, and sports and recreational facilities.

Membership details for all committees are available on request.

COLLEGE SENIOR STAFF

The non-Trustee senior staff of the College to whom day to day management is delegated are:

Mr Harmohinder Bahl Home Bursar Mrs Jayne Stoddart Head of Works Ms Leigh MacNeill College Accountant

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WORCESTER COLLEGE

Governing Body, Officers and Advisers Year ended 31 July 2023

COLLEGE ADVISERS

Investment managers

Oxford University Endowment Management Ltd King Charles House Park End Street Oxford OX1 1JD

Auditor

Moore Kingston Smith LLP 6[th] Floor 9 Appold Street London EC2A 2AP

Bankers

The Royal Bank of Scotland Customer Service Centre Drummond House 1 Redheughs Avenue Edinburgh EH12 9JN

COLLEGE ADDRESS

Worcester College Walton Street Oxford OX1 2HB

College website

www.worc.ox.ac.uk

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WORCESTER COLLEGE Report of the Governing Body Year ended 31 July 2023

The Members of the Governing Body present their Annual Report for the year ended 31 July 2023 under the Charities Act 2011 together with the audited financial statements for the year.

REFERENCE AND ADMINISTRATIVE INFORMATION

The Provost, Fellows & Scholars of Worcester College in the University of Oxford, which is known as Worcester College, (“the College”) is an eleemosynary chartered charitable corporation aggregate. It was founded through a legacy of Sir Thomas Cookes Bt. under a Royal Charter of Queen Anne dated 1714. The corporation comprises the Provost and Fellows. The College is registered under the Charity Commission (registered number 1143479).

The names of all Members of the Governing Body at the date of this report and of those in office during the year, together with details of the senior staff and advisers of the College, are given on pages 2 to 4.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing documents

The College is governed by its Statutes dated 14 December 2011.

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 Master of the Rolls on behalf of the Crown. New Governing Body fellows are appointed by the existing trustees, for specified periods of time or until retirement. New members of the Governing Body are elected on the basis of expertise in their particular field.

The Governing Body devises and approves the College’s strategy and oversees its administration and also the management of its finances and assets. It meets regularly, chaired by the Provost.

Recruitment and training of Members of the Governing Body

New Members of the Governing Body are normally recruited by open application and interview and are inducted into the workings of the College, including Governing Body policy and procedures, by means of being provided with a copy of the College Statutes, the Fellows’ Handbook, Charity Commission Guidance Notes and informal discussions with colleagues.

Training courses and information to keep members of the Governing Body informed about current issues in the sector and on regulatory requirements are kept under review and offered, as appropriate.

Remuneration of Members of the Governing Body and Senior College Staff

Members of the Governing Body, who are primarily Fellows, are teaching and research employees of the College and receive no remuneration or benefits from their trusteeship of the College. Those trustees that are also employees of the College receive remuneration for their work as employees of the College. This is set based on the advice of the College’s Remuneration Committee. Where possible, remuneration is set in line with that awarded to the University’s academic staff.

The remuneration of senior college staff is approved by Governing Body on the recommendation of the Remuneration Committee.

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WORCESTER COLLEGE Report of the Governing Body Year ended 31 July 2023

Organisational management

The members of the Governing Body normally meet twice a term with the provision for extraordinary meetings, if required. Governing Body has established a series of committees to attend to and advise upon the wide range of matters for which Trustees are accountable.

Six Principal Committees meet termly to cover the main operational areas of College life and report directly to Governing Body, some of which are informed by operational or specialist sub-committees.

Development Committee

Provides strategic advice to the Development Director and oversight of the College’s fundraising activities, policies and donor relations.

Education Committee

Considers all business related to the academic life and activities of the College, with the aim of supporting students and promoting excellence in teaching and research.

Estates & Operations Committee

Provides strategic advice and general oversight to ensure College buildings and facilities meet the academic, social and residential needs of the College community, within its means and for long-term sustainability. The Committee usually meets twice per term. Its sub-committees include those responsible for Health & Safety, IT, Gardens & Grounds and Sustainability.

Finance Committee

Sets and monitors annual financial budgets. Deals with issues of financial management, procurement, reporting and compliance, aiming to secure long-term financial sustainability and value for money across all College expenditures.

General Purposes Committee

Provides a regular forum for the consideration of urgent or strategic issues and those which do not fall wholly within the remits of other committees.

People & Culture Committee

Monitors, facilitates and promotes policies, strategies and actions to strengthen the skills, achievements and impacts of people in the Worcester College community. Its sub-committees include those responsible for HR and Equality, Diversity & Inclusion

Three Advisory Committees are convened termly to provide strategic advice and oversight for governance, academic and operational areas.

Academic Strategy Committee

Produces and monitors progress on an annual academic strategy which sets out aspirations for the size, shape, performance and provision of teaching and research.

Governance & Compliance Committee

Monitors progress on the College's strategy, and reviews College governance, policies and processes to ensure appropriate measures of transparency, compliance and accountability.

Audit & Risk Committee

Provides review and advice from external experts to assist Governing Body in the fulfilment of its corporate governance, and charitable duties.

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WORCESTER COLLEGE Report of the Governing Body Year ended 31 July 2023

Two other committees directly report to Governing Body:

The day-to-day running of the College is delegated to the Provost, supported by the following College Officers and senior staff: the Vice Provost, the Finance & Estates Bursar, the Senior Tutor, the Dean, the Home Bursar, the Development Director, the College Accountant, the Librarian and the Director of the Visiting Student Programme. All meetings of the committees listed above are attended by one or more of these individuals.

Group structure and relationships

The College has a wholly owned trading subsidiary, Worcester College Enterprises Limited whose accounts are consolidated into the accounts of the College.

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.

A separate charity which is not controlled by the College, Worcester College Oxford Endowment Trust, has the support of the College as its principal charitable objective. The Trust makes an annual grant to the College (currently at 4.25% of the value of its assets at year end).

The College also administers many special funds, as detailed in Note 16 to the financial statements.

OBJECTIVES AND ACTIVITIES

Worcester College is committed to teaching, learning and exchanging ideas which make a positive impact in wider society. As an academic community within the University of Oxford, the College promotes freedom of thought and expression, the integrity of academic research, and the belief that all members of the College should be valued and respected. The College offers a stimulating and supportive teaching and learning environment for students at undergraduate and graduate levels in a wide range of academic disciplines. This is complemented by modern facilities and a range of opportunities for extra-curricular activity.

The College’s educational provision works in tandem with the courses of study available to its students within the departments and faculties of the University of Oxford. In particular, the College organises small-group tutorials for undergraduates in which each student’s education is steered by research-active academics. This system of supervision, alongside advisors for graduate students, ensures that the College provides an informing, inspiring and challenging learning environment for all its students.

For centuries Worcester College has helped students to achieve their potential and contribute to society after graduation. Alumni have gone on to lead fulfilling professional lives and have made major contributions in their chosen fields, from academia, education, science and the arts, to faith communities, public service, business and the military.

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WORCESTER COLLEGE Report of the Governing Body Year ended 31 July 2023

Charitable Objects and Aims

The College’s Objects are the advancement of education, religion, learning and research, by the provision of a college in the University of Oxford, for the benefit of the public.

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

Working with the University of Oxford’s departments and faculties, students are admitted from a wide range of demographic, financial and cultural backgrounds solely on the basis of their academic ability and potential.

The College provides opportunities for its students to develop their academic knowledge and potential, and the transferable skills they will need to contribute in the workplace and in society more widely. Small-group tutorial and class teaching for undergraduates is supplemented by the provision of a range of teaching and learning facilities, including three libraries and several lecture/seminar rooms. The College also offers a range of welfare, pastoral and administrative systems to support students, as well as social, cultural, and extra-curricular activities.

The Admissions and Access Officers employed by the College undertake outreach and wideningparticipation work with schools, colleges and individuals and work with the Senior Tutor to develop and implement policies associated with access to Higher Education. The Senior Tutor, supported by a Graduate Officer, is responsible for work associated with the admission of graduate students.

The College recognises academic achievement through the award of scholarships, exhibitions and prizes for strong performance. Funds are provided to assist students with the purchase of academic books, to help with vacation residence and field trip costs, and for travel associated with attendance at conferences and in furtherance of their academic work.

The College advises and assists students who are in financial hardship. A Student Financial Aid Committee considers applications for assistance from the College’s hardship funds and is able to provide help by means of grants, loans or a combination of the two.

The College funds a number of career development Junior Research Fellowships and Tutorial Fellowships in a wide range of subject areas including biology, social sciences and the history of art. Associations are also offered, by means of Senior Research Fellowships and Supernumerary Fellowships, to individuals in University departments and faculties who are undertaking research.

Through the standard University scheme for sabbatical leave, and in considering requests for special leave, the College also provides replacement teaching to enable Fellows to dedicate between 1 and 3 terms to specific research projects. All Tutorial Fellows and career development Junior Research Fellows are eligible to receive a Teaching and Research Allowance and may apply for assistance towards expenses incurred in attending academic conferences.

Students and academic staff are able to make use of the College’s three libraries, and researchers can also apply to access material in the College’s archive or special collections of prints drawings and manuscripts.

The College employs a full-time Chaplain who, along with the Assistant Chaplain, conducts services in the Chapel and can be approached by students of any faith or none as a member of the welfare team. The Chapel, open every day, acts as a centre of Christian worship but its use by anyone as a space for quiet reflection is also encouraged.

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WORCESTER COLLEGE Report of the Governing Body Year ended 31 July 2023

The Chapel supports the college choir under the direction of the full-time Director of Music, featuring both mixed-voice choral scholars, boy trebles from Christ Church Cathedral School, and two undergraduate organ scholars. The choir sing regular services of evensong and communion, four times weekly in full term, as well as taking part in concerts, tours, broadcasts and recordings.

A multi-faith prayer room is available as an alternative space for prayer and reflection for both groups and individuals, and all services are promoted, internally and externally, by means of notice boards, social media and websites. Information about the variety of faith societies, belief groups and religious centres within the University is provided in the Undergraduate and Graduate Handbooks.

The Chaplain organises various events outside of the Chapel to discuss religion, ethics and morality, usually including a weekly discussion group and a termly dinner with guest speaker, alongside more social activities focussing on wellbeing and pastoral care.

ACHIEVEMENTS AND PERFORMANCE

Worcester has had a very successful year. Operationally, life in College has fully returned to its pre-pandemic state; this is especially evident in the commercial income that the College has been able to re-develop and grow to pre-pandemic levels. Sadly, our students were still experiencing the impact of the Covid pandemic: many of our second- and third-years were not able to take their A Levels and our first-years’ schooling was also negatively impacted. We have ensured extra teaching support has been available to these cohorts to enable them to thrive at Worcester. The Oxford tutorial system presents unique opportunities for our students’ academic and personal development and we have worked hard to ensure that all our students benefit from the opportunities that exist in College. These have enabled them to develop the critical academic skills to build selfconfidence, thrive as independent learners and continue to be ambitious. We continue to focus on those with the most talent and potential – when considering both students and staff – and are confident that our community will continue to build its resilience and inclusive values.

Teaching arrangements have reverted to pre-pandemic models, with tutorials taking place in College throughout 2022-23. We continue with usual modes of provision, with teaching and learning enhanced by the provision of online resources and materials.

Most committee meetings take place in College, often with a hybrid / online option for those who cannot attend. Governing Body meetings continue to be held in person.

Delivery of the College Strategy

The College adopted a Five-Year College Strategy in Trinity Term 2022 (1) promote academic excellence and research (2) develop of a strong and inclusive College culture and (3) to ensure strong financial stewardship and good governance. The College’s Strategy Implementation Group has worked hard to deliver the College’s strategic ambitions. Key aspects have been:

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WORCESTER COLLEGE Report of the Governing Body Year ended 31 July 2023

Access and Admissions

Access and outreach work continue to focus on active engagement schools in our ‘link areas’ of West Yorkshire, as determined by the University’s regionalisation scheme. 87% of our first-year intake in 2023 came from state schools, a close match for the national population, and the College continues to adhere to University guidance on the use of contextual data when assessing applications.

Our Tinsley Access & Outreach officer continued to offer structured and informal visit days for schools across a wide age range, drawing upon support from tutorial fellows for academic input as appropriate. Enrichment activities of this type are a core part of our provision, equipping and empowering applicants from under-represented groups within the College and University. Feedback received was very positive, and planning for a further programme of events and visits for 2024-25 is under way, including renewed work with teachers. Additional bespoke online sessions have been arranged with school groups who are not able to travel to Oxford, and the Access & Outreach Officer has also provided tailored support with the drafting of applicants’ personal statements as part of UCAS applications.

In 2019, the College’s Governing Body set a number of access targets for undergraduate admissions, focusing on groups currently under-represented at Oxford University. We have continued to make significant progress towards achieving these targets: in 2022, 87% of our intake came from state schools (2018: 67%), 25% came from areas with the lowest levels of progression to Higher Education (2018: 15%), and 25% came from the most socio-economically disadvantaged areas (2018: 14%). Racial equality remains a key focus of our access work, and in our 2022 intake just over 32% of our UK intake was from BAME backgrounds (2018: 14%).

The College’s three undergraduate Open Days have been well attended, with an estimated footfall of >3,000 at the two events in June. Student Ambassadors have played an active role in the planning and delivery of the Open Day programme, leading College tours, meeting individual potential applicants, and contributing to question-and-answer sessions run by the Senior Tutor and Admissions & Outreach officer. Our students are in many respects our best ambassadors, and their contribution to events such as these gives visitors a tangible picture of Worcester’s academic community and our welcoming and inclusive environment.

Fellowship and Staff

Our governance is arranged according to our College Statutes and By-Laws, with the College's Governing Body holding overall responsibility for College policies and affairs. The Governing Body is chaired by the Provost. Its membership comprises all Official Fellows (Tutorial and Non-Tutorial) and Professorial Fellows (persons whose posts are statutory Professorships of the University or are similarly ranked by it, and are permanently attached to the College). There are four categories of Fellowship – Research, Supernumerary, Emeritus and Honorary – of which the first two may be elected to membership of the Governing Body.

The College is also home to a thriving community of Research, Honorary and Emeritus Fellows. The recent appointment of two Heads of Research from among the fellowship is part of a wider commitment to fostering a lively and supportive research environment, and the provision of support and mentoring to early career researchers. The College supports a range of research activities including seminars, workshops, public lectures, round-table discussions, and interdisciplinary approaches to research and publication that address a public audience.

We have appointed to four non-stipendiary Junior Research Fellowships, three stipendiary Junior Research Fellowships, and one Senior Research Fellowship. We recognise the contribution that early career researchers make to the academic community at Worcester, and the importance of providing a mutually supportive research culture and environment in College.

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WORCESTER COLLEGE Report of the Governing Body Year ended 31 July 2023

Student Numbers and Progress

Worcester College is home to 449 undergraduates, 200 postgraduates, and 28 visiting students. In Finals (2023) Worcester's undergraduates obtained 44 Firsts, 59 Upper Seconds, 5 Lower Second and 2 Thirds. Students also achieved excellent results in their First Public Examinations (normally taken in the first year). At the time of writing, we await the publication of the Norrington Table. However our undergraduate students have been awarded Faculty Prizes across a wide range of subjects, including Medicine, Classics, Chemistry, Engineering, Management, Immunology, and Pharmacology.

The College is home to a vibrant community of graduate students pursuing a wide range of postgraduate taught and research degrees.

Student Financial Support

The College has continued to offer financial support to its students, including for academic provision, hardship, bursaries, study grants and extra-curricular activities. Funds were also provided to support other activities including field trips, medical electives, undergraduate research/conference travel, book bursaries, sports bursaries and language tuition. A total of £331k was disbursed during the year (2022: £301k).

Development

This year saw a considerable improvement in our Development operation. Viola Kerr joined us as full-time Development Director in May 2023 following the work of Julia Thaxton as a part-time Interim Development Director who managed the team from October 2022 until May 2023.

In 2022-23 we raised £6,811,720 in cash received. However, £37,062,036 was raised including both cash received and pledges. This includes the most significant fundraising achievement at the College this year, and the largest single gift ever pledged to Worcester: the transformational £30m from Sir Lindsay Owen-Jones to create a new library and new graduate student accommodation at Worcester. The first instalment of £10m falls in the 2023-24 financial year.

Receipts in respect of legacies recognised in the prior year amounted to £5,518,261 of cash received in 202223. A significant success was a number of loyal donors agreeing to give unrestricted gifts towards the end of the year to support the financial health of the College in line with the Finance Strategy, which raised £539,882 in this financial year (a further £257,549 having been pledged but arriving just after the end of the financial year). Also focusing on unrestricted gifts was a particularly successful Telethon campaign in March, raising £210,000 over a five day period, more than double the previous telephone campaign. Other highlights include increasing the number of graduate scholarships the College is able to provide through some significant donations, and successful stewardship of donors to such scholarships.

Our overall participation rate (number of annual donors per contactable alumni) has continued to increase year-on-year since 2019-20. This year it was 10.9%, a slight increase on the previous year, despite limited activity which will increase in future years.

A full programme of Old Members events was delivered including an event at the House of Lords, the second Donors’ Dinner, two trips by the Provost to the US and a dinner for Rhodes Scholar alumni at Worcester.

The College is grateful to all those made an impact on its work through their financial support this year.

FINANCIAL REVIEW

The 2022-23 financial year has been particularly challenging. Inflation was around 10% in the first half of the year, and was still around 7% by year end. Inflation in key areas of expenditure – such as energy, and food -

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WORCESTER COLLEGE Report of the Governing Body Year ended 31 July 2023

was considerably higher. These inflationary pressure were also felt by our loyal and hardworking staff, and we did what we could to help them manage, including adopting the University pay settlement.

The principal funding sources of the College continue to be fees, accommodation charges, conference income, donations and endowment income. Fee income received via the University, from the Office for Students (OfS), various funding bodies and students.

The College also receives financial support from many benefactors mentioned above, who enabled us to avoid an operating deficit this year.

Total income and endowments for the year were £14,719k (compared with £18,166k in 2022). As noted above, this included £2,729k from donations and legacies (2022: £9,105k).

The College’s charitable objects continue to be met with resources expended on charitable activities for the year of £13,593k (2022: £14,389k).

Incoming resources from charitable activities in the year, principally fees and residential income were £7,125k compared with £5,935k in 2022. Conference activity grew strongly, being £2,836 (compared with £1,378k in 2022).

The operating cash deficit decreased from £3,338k in 2022 to £272k in 2023, reflecting continued spending on the backlog maintenance programme, higher cash donations and rising costs generally. The pension provision decreased by £985k in the year (2022: £1,942K increase) a significant, albeit largely non-cash component of this year’s deficit.

All of the College’s securities and other investments are managed by Oxford University Endowment Management Limited (OUEM) and total £49,409k (2022: £46,416k).

The Trustees continue to give particular attention to the College’s ability to continue as a going concern in the face of significant economic challenges. Improved trading activity and the generous support of old members makes it possible to continue College activities at their present scale but we continue to examine all our operations to ensure value for money and identify ways of achieving improved financial sustainability on a long-term basis. Having reviewed the current cash position and forecast income and expenditure, and in the light of the College’s existing financial resources, the trustees are satisfied that the College is a going concern. However, the operating budget for the coming years remains challenging, and additional income will need to be generated and costs controlled to ensure that the College’s finances remain healthy into the medium term and beyond.

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, to allow the College to be managed efficiently and to provide a buffer that would ensure uninterrupted delivery of services. In 2018-19, having reviewed current risks and uncertainties in the external environment, the Trustees set a target range for free reserves equal to 3- 6 months of operating costs to allow operations to continue in the event of short-term economic disruption or other revenue shocks, and committed to developing financial strategies to achieve this. In setting this target, the Trustees were also mindful that the College’s Expendable Endowment provides a degree of protection in the event of short-term revenue pressure, although taking the view that it is preferable and prudent also to increase the level of free reserves given the long-term purpose of the Endowment.

The Group’s unrestricted reserves (excluding Pension reserve) at the year-end amounted to £39,617k (2022: £38,770k), represented by a £33,439k fixed asset designated reserve (2022:£32,746k), £4,833k (2022:£4,833k) of a long term property investment reserve and free reserves of £1,345k (2022: £1,191k). This is below the Trustees’ target for free reserves, but the Trustees take comfort that the number is positive and they plan to build free reserves to the desired level as operating circumstances permit.

The Pension provision of £(2,496)k (2022: £3,481k) represents a commitment to pay additional pension contributions over the period to 31 January 2028. The College is confident that it can meet these contributions from projected future cash flows without significant impact on planned levels of charitable activity, therefore in line with Charity Commission guidance, this commitment does not impact free reserves.

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WORCESTER COLLEGE Report of the Governing Body Year ended 31 July 2023

Investment policy, objectives and performance

The College’s investment objectives are to balance current and future beneficiary needs by:

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 investment strategy, policy and performance are monitored by the Investment Sub-Committee. At the year end, the College’s long term securities totalled £49,409k, (2022: £46,416k) which during the year generated income of £2,029k (2021: £1,748k) and included the recognition of an unrealised loss in the year of (£2,525k) (2022: loss of £313k).

Under the total return accounting basis, it is the Governing Body’s policy to extract as income up to 4.5% of the value of the relevant invested funds. The Governing Body will keep the level of drawdown under review to balance the needs and interests of current and future beneficiaries of the College’s activities.

Risk management

The College has on-going processes which operated through-out the financial year for identifying, evaluating and managing the principal risks and uncertainties faced by the College and its subsidiary in undertaking their activities.

The Governing Body has ultimate responsibility for managing any risks faced by the College, and the Audit and Risk Committee helps it monitor the major risks to which the College is exposed. A risk register and action plan has been established and responsibility for the management of the key risks resides with the College officers and their relevant committees, with the Audit and Risk Committee receiving periodic reports on the effectiveness of this.

The principal risks and uncertainties faced by the College and its subsidiaries that have been identified are categorised as follows:

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WORCESTER COLLEGE Report of the Governing Body Year ended 31 July 2023

contingency planning and insurance. Other risks relating to the operational activities of the college such as employment of staff and use of IT are managed through clear procedures and monitoring.

FUTURE PLANS

The College is looking at all aspects of its operations including the size and composition of the student body although we expect any changes to be gradual and evolutionary in nature. It will continue to deliver teaching and learning through the tutorial system, to support research, fund scholarships and scholarly activity and to recognise scholarly achievement, support students in financial hardship and provide for the spiritual welfare of its students through its chapel provision.

The College’s ongoing essential maintenance programme is planned to continue into the next financial year and beyond. It represents a significant expenditure commitment. Alongside this, the free reserves will need to be rebuilt to the target level that the trustees have set in the light of uncertainties in the external environment. These factors further increase the importance of the cost control and commercial revenue work noted above.

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Report of the Governing Body Year ended 31 July 2023

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 have prepared the financial statements in accordance 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 they are 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 must:

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 them to ensure that the financial statements comply with the Charities Act 2011. They are 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 29 November 2023 and signed on its behalf by:

David Isaac Provost

16

WORCESTER COLLEGE Report of the Auditor to the Members of the Governing Body Year ended 31 July 2023

Independent auditor’s report to the trustees of Worcester College

Opinion

We have audited the financial statements of Worcester College (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 July 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated and College Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102; The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report, set out on pages 6 to 16 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.

17

WORCESTER COLLEGE

Report of the Auditor to the Members of the Governing Body Year ended 31 July 2023

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the Trustees' Responsibilities Statement set out on page 16, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and College’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or parent 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 regulations made under section 154 of that Act.

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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

18

WORCESTER COLLEGE

Report of the Auditor to the Members of the Governing Body Year ended 31 July 2023

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

19

WORCESTER COLLEGE

Report of the Auditor to the Members of the Governing Body Year ended 31 July 2023

Use of this report

This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Moore Kingston Smith LLP, Statutory Auditor 6[th] Floor 9 Appold Street London EC2A 2AP

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006. Date: 8 December 2023

20

WORCESTER COLLEGE Statement of Accounting Policies Year ended 31 July 2023

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 subsidiary, Worcester College Enterprises Limited.

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 its subsidiary for the reporting year are in note 12.

The accounts of the affiliated student bodies, Worcester College Clubs, Middle Common Room and Junior Common Room have not been consolidated because the College does not control these activities.

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’.

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 accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland’ (The Charities SORP (FRS102).

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. Going concern

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the College to continue as a going concern. Having reviewed the current cash position and forecast income and expenditure, and in the light of donations received and pledged to support the College, cost control, fund raising initiatives and the significant expendable endowment funds available, the trustees have concluded that the College will have sufficient liquidity to operate for at least the next twelve months from the date of approval of these financial statements. The College therefore continues to adopt the going concern basis in preparing its financial statements.

4. Accounting judgements and estimation uncertainty

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

The College participates in two multi-employer defined benefit pension plans. In the judgement of the Governing Body, there is insufficient information about the plan assets and liabilities to be able to account reliably for its share of the defined benefit obligation and plan assets in the financial statements and therefore the plan is accounted for as a defined contribution scheme (see note 20).

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.

21

WORCESTER COLLEGE Statement of Accounting Policies Year ended 31 July 2023

4 Accounting judgements and estimation uncertainty (continued)

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 and its subsidiaries are the level of investment return and the performance of investment markets.

5. 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, OFS support and other charges for services

Fees receivable, less any scholarships, bursaries or other allowances granted from the College’s unrestricted funds, OFS support and charges for services and use of the premises are recognised in the period in which the related service is provided.

Conference income in relation to conferences that span the year end is accrued for in accordance with the proportion of completion.

b) Income from donations, grants and legacies

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

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

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.

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.

22

WORCESTER COLLEGE Statement of Accounting Policies Year ended 31 July 2023

6. 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.

7. Tangible fixed assets

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

Expenditure on the acquisition or enhancement of land and on the acquisition, construction and enhancement of buildings which is directly attributable to bringing the asset to its working condition for its intended use, together with expenditure on equipment costing more than £2,000, 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
Building improvements 50 years
Equipment, Fixtures and Fittings 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 changes in circumstances indicate that the carrying value may not be recoverable then the carrying values of tangible fixed assets are reviewed for impairment.

9. 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.

23

WORCESTER COLLEGE Statement of Accounting Policies Year ended 31 July 2023

9. Investments (continued)

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.

10. Stocks

Stocks are valued at the lower of cost and net realisable value, cost being the purchase price on a first in, first out basis. Where necessary, provision is made for obsolete, slow moving and defective stock.

11. Foreign currencies

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

Transactions denominated in foreign currencies during the year are translated into pounds sterling using the prevailing rates of exchange 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 balance sheet date. The resulting exchange differences are taken to the SOFA.

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 balance sheet date are recognised in the income and expenditure section of the SOFA.

12. Total return investment accounting

The College 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 released to income at the discretion of the Governing Body.

13. Fund accounting

The total funds of the College and its subsidiaries are allocated to unrestricted, restricted or endowment funds based on the origins of the funds and 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 earmarked funds for specific 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 income 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 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.

24

WORCESTER COLLEGE Statement of Accounting Policies Year ended 31 July 2023

14. Pension costs

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

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

The College also operates a defined contribution pension scheme. Contributions to these arrangements are charged to the SOFA in the period in which they are payable.

25

WORCESTER COLLEGE

Consolidated Statement of Financial Activities

For the year ended 31 July 2023

Unrestricted
Funds
Notes
£'000
INCOME AND ENDOWMENTS FROM:
Charitable activities
Teaching, research and residential
1
7,125
Other trading income
3
2,836
Donations and legacies
2
2,084
Investment income
4
89
Total income
12,134
EXPENDITURE ON:
Charitable activities
Teaching, research and residential
6
11,663
Generating funds:
Fundraising
237
Trading expenditure
20
Total expenditure
6
11,920
Net (expenditure)/income before gains
214
Net gains/(losses) on investments
-
Net (expenditure)/income
214
Transfers between funds
1,618
Net movement in funds for the year
1,832
Fund balances brought forward
16
35,289
Funds carried forward at 31 July
16
37,121		 Unrestricted
Funds
Notes
£'000
INCOME AND ENDOWMENTS FROM:
Charitable activities
Teaching, research and residential
1
7,125
Other trading income
3
2,836
Donations and legacies
2
2,084
Investment income
4
89
Total income
12,134
EXPENDITURE ON:
Charitable activities
Teaching, research and residential
6
11,663
Generating funds:
Fundraising
237
Trading expenditure
20
Total expenditure
6
11,920
Net (expenditure)/income before gains
214
Net gains/(losses) on investments
-
Net (expenditure)/income
214
Transfers between funds
1,618
Net movement in funds for the year
1,832
Fund balances brought forward
16
35,289
Funds carried forward at 31 July
16
37,121		 Restricted

Funds

£'000

-

-

599

-
599

1,930

-

-
Endowed
Funds
£'000

-
-
-

46

1,940
1,986

-


-

-

-
1,986

(2,525)


(539)


(2,984)

(3,523)

59,593

56,070		 2023
Total
£'000

7,125

2,836

2,729

2,029
14,719

13,593

237

20
13,850
869
(2,525)

(1,656)

-

(1,656)

97,073

95,417		 2022
Total
£'000
5,935
0
1,378
9,105
1,748
0

18,166
14,389
0
0
703
27
0
11,920
1,930		 15,119
214
-
214
1,618
1,832
35,289
37,121
(1,331)

-

(1,331)

1,366

35

2,191

2,226		 3,047
(313)
2,734
-
2,734
94,339
97,073

26

WORCESTER COLLEGE

Consolidated and College Balance Sheets As at 31 July 2023

Notes
FIXED ASSETS
Tangible assets
9
Property investments
10
Securities and other investments
11
CURRENT ASSETS
Stocks
Debtors
14
Cash at bank and in hand
CREDITORS: falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS BEFORE PENSION LIABILITY
Defined benefit pension scheme liability
NET ASSETS
FUNDS OF THE COLLEGE
16
Endowment funds
Restricted funds
Unrestricted funds
Designated fixed assets fund
General funds (excluding pension reserve)
Pension reserve		 2023
Group

£'000
33,647
4,833
49,409
87,889
169
2,345
9,846
12,360
(2,336)
10,024
97,913
97,913
(2,496)
95,417
56,070
2,226
33,439
6,178
(2,496)
95,417		 2022
Group
£'000

32,945
4,833
46,416
0
84,194

136
8,471
9,176
0
17,783

(1,423)

16,360

100,554
100,554
(3,481)

97,073


59,593
2,191

32,746
6,024
(3,481)
0
97,073		 2023
College
£'000
33,647
4,833
49,409
 2022

College

£'000

32,945

4,833

46,416
000
87,889
84,194
169
3,687
8,324

12,180
(2,156)
10,024
97,913
97,913
(2,496)
95,417
56,070
2,226
33,439
6,178
(2,496)
95,417
136

8,811

8,686
0

17,633

(1,273)

16,360

100,554
100,554

(3,481)

97,073

59,593

2,191

32,746
6,024

(3,481)

97,073

The financial statements were approved and authorised for issue by the Governing Body of Worcester College on 29 November 2023.

David Isaac, Provost

27

WORCESTER COLLEGE

Consolidated Statement of Cash Flows

For the year ended 31 July 2023

Notes
Net cash used in operating activities
22
Cash flows from investing activities
Dividends, interest and rents from investments
Purchase of property, plant and equipment
Purchase of investments
Net cash used in/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
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period		 2023
Group
£'000
5,789
2,029
(1,676)
(5,518)
(5,165)
46
46
670
9,176
9,846		 2022
Group
£'000
(3,338)
1,748
(114)
-
1,634
118
118
(1,586)
10,762
9,176

The College has no net debt and accordingly no net debt note is presented.

28

WORCESTER COLLEGE

Notes to the Financial Statements

For the year ended 31 July 2023

1 INCOME FROM CHARITABLE ACTIVITIES

Teaching, research and residential
Unrestricted Funds
Tuition fees - UK and EU students
Tuition fees - Overseas students
Other fees
Other OFS support
Other academic income
College residential income		 2023
£'000
2,063
828
666
127
211
3,230

7,125		 2022
£'000
2,096
614
420
115
177
2,513
0
5,935

The above analysis includes £3,017k received from Oxford University from publicly accountable funds under the College Funding Formula Scheme (2022: £2,875k).

2 DONATIONS AND LEGACIES

Unrestricted funds
Restricted funds
Endowed funds		 2023
£'000

2,084
599
46
2,729		 2022
£'000
1,298
689
7,118
9,105

Restricted funds includes grants of £250k (2022: Nil) awarded by the Conference of Colleges Contribution Scheme.

3 INCOME FROM OTHER TRADING ACTIVITIES

Subsidiary company trading income
Other trading income
INVESTMENT INCOME
Unrestricted funds
Equity dividends
Interest on fixed term deposits and cash
Other investment income
Restricted funds
Other investment income
Endowed funds
Other investment income		 2023
£'000

895
1,941
2,836
2023
£'000

3
86
-
89

-


1,940		 2022
£'000
393
985
1,378
2022
£'000
3
3
-
6

-
1,742

4 INVESTMENT INCOME

.

29

WORCESTER COLLEGE Notes to the Financial Statements For the year ended 31 July 2023

5 ANALYSIS OF EXPENDITURE

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
Expenditure on raising funds
Direct staff costs allocated to :
Fundraising
Trading Expenditure
Other direct costs allocated to:
Fundraising
Support and governance costs allocated to:
Fundraising
Fundraising
Trading Expenditure		 2023
£'000


5,681
5,392
2,520

13,593


74
20

91

72

257
13,850
237
20
-
257		 2022
£'000
7,197
4,900
2,292
0
14,389
417
27
0
197
0
89
0
730
15,119
703
27
730

The 2023 resources expended of £13,850k (2022: £15,119k) represented £11,920k from unrestricted funds (2022: £12,492k) and £1,931k from restricted funds (2022: £2,627k)

6 ANALYSIS OF SUPPORT AND GOVERNANCE COSTS




Financial and domestic admin

Human resources

IT

Depreciation

Other finance charges

Governance costs

 Generating
Funds
£'000
12
10
38
-
12
-
72		 Teaching
Research &
Residential

£'000


680

388

438

972

17

25
2,520		 2023
Total

£'000

692

398
476

972

29

25
2,592

30

WORCESTER COLLEGE Notes to the Financial Statements

For the year ended 31 July 2023

6 ANALYSIS OF SUPPORT AND GOVERNANCE COSTS (continued)




Financial and domestic admin

Human resources

IT

Depreciation

Other finance charges

Governance costs

 Generating
Funds
£'000
60
42
38
-
12
-
152		 Teaching
Research &
Residential

£'000


534

329

366

1,007

31

25

2,292		 2022
Total

£'000

594

371

404

1,007

43

25

2,444

Finance and administration and human resources costs are attributed according to the estimated staff time spent on each activity. Depreciation costs are attributed according to the use made of the underlying assets. IT costs are attributed according to the estimated time spent on each activity. Interest and other finance charges are attributed according to the purpose of the related financing.

according to the purpose of the related financing.
2023 2022
£'000 £'000
Governance costs comprise:
Auditor’s remuneration – audit services 25 25

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.

7 GRANTS AND AWARDS

During the year the College funded research awards and bursaries to students from its funds as follows:

Grants to individuals from:
Unrestricted funds
Scholarships, prizes and grants
Bursaries and hardship awards
Restricted funds
Scholarships, prizes and grants
Bursaries and hardship awards
Total grants and awards		 2023
£'000

27
69
96

305
95
400

496		 2022
£'000
27
36

63
268
124
392
455

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

The figure included above represents the cost to the College of the Oxford Bursaries scheme. Students in the College received £198k in bursaries in (2022: £178k).

31

WORCESTER COLLEGE Notes to the Financial Statements

For the year ended 31 July 2023

8 STAFF COSTS

The aggregate payroll costs for the year were as follows:


Salaries and wages
Social security costs
Pension costs
Pension provision adjustment

The average number of employees of the College, excluding Trustees, was as follows:
Tuition and research
College residential
Fundraising
Support
Total
The average number of employed College Trustees during the year was as follows:
University Lecturers
CUF Lecturers
Other teaching and research
Other
Total
 2023
£'000
6,549
569
912
8,030
(1,099)
6,931
2023
196
86
6
29
317
2023
20
11
3
5
39		 2022
£'000
5,161
465
893
6,519
1,942
8,461
2022
172
83
5
19
279
2022
16
12
7
3
38

Salary and wages costs include severance costs of £75k for five members of staff (2022:£16k for two members of staff).

The College also benefits from temporary staff, agency workers and those part-time external tutors who are not on the College payroll.

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:

2023 2022
£70,001 to £80,000 4 2
£80,001 to £90,000 2 -

Details of the remuneration and reimbursed expenses of the College Trustees are included as a separate note in these financial statements.

32

WORCESTER COLLEGE Notes to the Financial Statements

For the year ended 31 July 2023

9 TANGIBLE FIXED ASSETS

Group and College
Cost
At start of year
Additions
At end of year
Depreciation
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
44,603
1,618
46,221
11,931
899
12,830
33,391
33,672
Fixtures,
Fittings and
Equipment

£'000

1,698

58
1,756

1,425
75
1,500
256

273


Total

£'000
46,301
1,676

47,977
13,356

974

14,330

33,647

32,945

Included within Fixtures, Fittings and Equipment above are intangible assets of £138k cost and £63k depreciation.

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

10 PROPERTY INVESTMENTS

Group and College
Valuation at start of year
Revaluation gains in the year
Valuation at end of year		 2023
Total
£'000

4,833
-
4,833		 2022
Total
£'000
4,583
250
4,833

A formal inspection valuation of the College properties was prepared by Mark Charter MRICS of Carter Jonas LLP as at 31 July 2022. Governing Body is satisfied that these valuations remain materially accurate at the balance sheet date.

33

WORCESTER COLLEGE Notes to the Financial Statements For the year ended 31 July 2023

11 SECURITIES AND OTHER INVESTMENTS

Group and College
Valuation at start of year
Invested in the year

Decrease in value of investments
Valuation at end of year
Group and College investments comprise:
Held outside
the UK
Held in the
UK
£'000
£'000
Global multi-asset funds
41,454
7,955		 2023
£'000
46,416
5,518
(2,525)
49,409
2023
Total
£'000

49,409		 2022
£'000
46,983
-
(567)

46,416
2022
Total
£'000
46,416

100% of the portfolio is invested with Oxford University Endowment Management (Endowment Fund).

12 PARENT AND SUBSIDIARY UNDERTAKINGS

The College holds 100% of the issued share capital in Worcester College Enterprises Limited, a company providing conference and accommodation services.

The results of the College and subsidiary, and their assets and liabilities at the year-end were as follows.

Worcester College
Income
Expenditure
Losses
Result for the year
Total assets
Total liabilities
Net funds at the end of year		 2023
£’000
2022
£’000
Worcester College
Enterprises Limited
14,719
18,165
Turnover
(13,850)
(15,117)
Expenditure
(2,525)
(313)
(1,656)
2,735
Result for the year
Donation to College (gift aid)
100,069
101,827
Total assets
(4,652)
(4,754)
Total liabilities
95,417
97,073
Net funds at the end of year		 2023
£’000
2022
£’000
947
455
(248)
(191)
699
264

(699)
(264)
-
-
1,875
720
(1,875)
(720)
-
-

34

WORCESTER COLLEGE Notes to the Financial Statements For the year ended 31 July 2023

13 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 November 2003. The investment return, to be applied as income, is calculated as up to 4.5% of the brought forward values of the relevant investments. The preserved (frozen) value of the invested endowment capital represents its open market value in 1992, except where the original donation can be identified, together with the original gift value of all subsequent endowments.

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
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		 Permanent Endowment
Expendable
Trust for
Investment
Unapplied
Total Return
TotalEndowment
£’000
£’000
£’000
£’000
23,140
-
23,140
-
-
9,722
9,722
-
-
-
-
26,731		 Permanent Endowment
Expendable
Trust for
Investment
Unapplied
Total Return
TotalEndowment
£’000
£’000
£’000
£’000
23,140
-
23,140
-
-
9,722
9,722
-
-
-
-
26,731
Total
2023
£’000
23,140
9,722
26,731
59,593
46
1,940
(2,525)
(539)
(785)
(2,199)
(3,523)
23,150
8,568
24,352
56,070
23,140
9,722
32,862		 26,731
10
-
10
-
1,025
1,025
-
(1,394) (1,394)		 36
915
(1,131)
10
(369)
(359)

-
(785)
(785)
-
-
-		 (180)
-
(2,199)
10
(1,154)
(1,144)
23,150
-
23,150
-
8,568
8,568
-
-
-		 (2,379)
-
-
24,352
23,150
8,568
31,718		 24,352

35

WORCESTER COLLEGE Notes to the Financial Statements

For the year ended 31 July 2023

13 STATEMENT OF INVESTMENT TOTAL RETURN (continued)

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
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		 Permanent Endowment
Expendable
Trust for
Investment
Unapplied
Total Return
TotalEndowment
£’000
£’000
£’000
£’000
16,071
-
16,071
-
-
9,831
9,831
-
-
-
-
27,593		 Permanent Endowment
Expendable
Trust for
Investment
Unapplied
Total Return
TotalEndowment
£’000
£’000
£’000
£’000
16,071
-
16,071
-
-
9,831
9,831
-
-
-
-
27,593
Total
2022
£’000
16,071
9,831
27,593
53,495
7,117
1,742
(567)
-
8,292
(677)
(1,517)
6,098
23,140
9,722
26,731
59,593
16,071
9,831
25,902
7,069
-
7,069
-
843
843
-
(275)
(275)
-
-
-		 27,593
48
899
(292)
-
7,069
568
7,637

-
(677)
(677)
-
-
-		 655
-
(1,517)
7,069
(109)
6,960
23,140
-
23,140
-
9,722
9,722
-
-
-		 (862)
-
-
26,731
23,140
9,722
32,862		 26,731

14 DEBTORS: falling due within one year

Trade debtors
Amounts owed by Group undertakings
Loans repayable within one year
Prepayments and accrued income
Other debtors

CREDITORS: falling due within one year
Trade creditors
Amounts owed to College Members
Taxation and social security
Accruals and deferred income
Other creditors
 2023
Group
£'000
362
-
17
1,771
195
2,345
2023
Group
£'000
1,046
209
239
165
677
2,336		 2022
Group
£'000
244
-
6
8,221
-
8,471
2022
Group
£'000
472
230
293
74
354
1,423
2023

College

£'000

8

1,696

17

1,771

195

3,687

2023

College

£'000

1,043

209

239

161

504

2,156		 2022
College
£'000
76
508
6
8,221
-
8,811
2022
College
£'000
472
230
292
74
205
1,273

15 CREDITORS: falling due within one year

36

WORCESTER COLLEGE Notes to the Financial Statements For the year ended 31 July 2023

16 MOVEMENTS OF THE COLLEGE FUNDS

The College accounts for its investment income on a total return basis, which allows the College to invest permanent endowments to maximise total return and to make available an appropriate proportion of the total return for expenditure each year. Until this power is exercised the total return is the ‘unapplied total return’ and remains as part of the permanent endowment. The College has adopted a total return rate of up to 4.5% on opening values. An amount equal to eligible expenditure is transferred from the permanent endowment fund to restricted funds from which eligible expenditure is spent.

Endowment Funds
Permanent
Fellowships
Research Support
Scholarships
Studentships
Donated Collection
Library & Book Conservation
The Marriott Trust
Other Funds
Expendable
General Fund
Fellowships
Visiting Fellows
Gardens and Grounds
Student Bursaries & Grants
Teaching Fund
Other Funds
Total Endowment Funds
Restricted Funds
Fellowships
Research Support
Scholarships
Studentships
Donated Collection
Library & Book Conservation
The Marriott Trust
Visiting Fellows
Student Bursaries & Grants
Teaching Fund
The Fabric Fund
Other Funds
Total Restricted Funds
Unrestricted Funds
General Reserve
Fixed Assets Designated
Designated Reserves
Pension Reserve
Subsidiary
Total Unrestricted Funds
Total Funds		 At 31 July
2022
£'000
23,725
1,242
2,798
1,263
1,513
564
1,038
719
0
7,030
8,818
2,070
1,542
2,430
813
4,028
59,593
-
-
-
-
-
-
-
-
-
25
499
1,667
2,191
1,191
32,746
4,833
(3,481)
-
35,289
97,073		 Incoming
Resources


£'000

713

42

96

43

52

19
36
34


241

304

71

82

84

29
140
1,986

-
-

-

-

-

-

-

-

-

-

-
599

599

9,522

1,665

-

-
947

12,134

14,719		 Resources
Expended

£'000

-

-

-

-

-

-
-
-
0

-

-

-

-

-

-
-

-

(884)

(1)

(123)

(45)

(6)

(13)

(9)

(36)

(32)

(4)

(121)
(656)

(1,930)

(11,685)

(972)


985
(248)

(11,920)

(13,850)		 Gains /
(Losses)

£'000

(1,005)

(53)

(119)

(54)

(64)

(24)
(44)
(31)


(298)

(374)

(88)

(65)

(103)

(34)
(169)

(2,525)

-
-

-

-
-

-
-

-

-
-
-
-
-


-
-

-
-
-
(2,525)		 Transfers

£'000

(556)

(1)
(123)

(45)

(6)
(13)
(9)
(32)

(1,618)

(328)

(36)

(63)

(32)
(4)
(118)
(2,984)

884

1

123

45

6

13

9

36

32

4

-
213

1,366
2,317

-

-

-
(699)

1,618
-		 At 31 July
2023

£'000

22,877
1,230

2,652

1,207
1,495

546
1,021
690
5,355

8,420

2,017
1,496

2,379
804
3,881
56,070

-

-

-

-

-

-

-

-

-

25

378
1,823

2,226

1,345

33,439
4,833

(2,496)
-

37,121

95,417

37

WORCESTER COLLEGE Notes to the Financial Statements For the year ended 31 July 2023

16 MOVEMENTS OF THE COLLEGE FUNDS (continued)

The College recognised property within the Expendable Endowed Fund in 2023 of £1,618k (2022: Nil).

Endowment Funds
Permanent
Fellowships
Research Support
Scholarships
Studentships
Donated Collection
Library & Book Conservation
The Marriott Trust
Other Funds
Expendable
General Fund
Fellowships
Visiting Fellows
Gardens and Grounds
Student Bursaries & Grants
Teaching Fund
Other Funds
Total Endowment Funds
Restricted Funds
Fellowships
Research Support
Scholarships
Studentships
Donated Collection
Library & Book Conservation
The Marriott Trust
Visiting Fellows
Student Bursaries & Grants
Teaching Fund
The Fabric Fund
Other Funds
Total Restricted Funds
Unrestricted Funds
General Reserve
Fixed Assets Designated
Designated Reserves
Pension Reserve
Subsidiary
Total Unrestricted Funds
Total Funds		 At 31 July
2021
£'000
16,806
1,217
2,799
1,280
1,484
565
1,026
725
0
7,919
8,931
2,055
1,464
2,455
794
3,975
53,495
-
-
-
-
-
-
-
-
-
-
1,499
1,690
3,189
858
33,753
4,583
(1,539)
-
37,655
94,339		 Incoming
Resources


£'000

7,550

40

147

42

48

18

33

36

00

258

293

67

93

80

27
128

8,860

-
-

-

-

-

-

-

-

-

-

250
439

689

8,162

-

-

-
455

8,617

18,166		 Resources
Expended

£'000

-

-

-

-

-

-

-

-

0

-

-

-

-

-

-
-

-

(763)

(2)

(116)

(45)

(4)

(13)

(10)

(30)

(34)

(3)

(1,064)
(543)

(2,627)

(9,352)

(1,007)

-

(1,942)
(191)

(12,492)

(15,119)		 Gains /
(Losses)

£'000

(178)

(13)

(30)

(14)

(16)

(6)

(11)

(8)


(84)

(95)

(22)

(16)

(26)

(8)
(36)

(563)

-
-

-

-
-

-

-

-

-
-

-
-
-

-

-
250

-
-
250
(313)		 Transfers

£'000

(453)

(2)

(118)

(45)

(3)

(13)

(10)

(34)
(0)

(1,063)

(311)

(30)

1

(79)

-
(39)
(2,199)

763

2

116

45

4

13

10

30

34

28

(186)
81

940

1,523

-
-

-
(264)

1,259
-
At 31 July
2022

£'000
23,725
1,242

2,798

1,263
1,513

564

1,038

719

0

7,030

8,818

2,070
1,542

2,430
813
4,028
59,593

-

-

-

-

-

-

-

-

-

25

499
1,667

2,191

1,191

32,746

4,833

(3,481)
-

35,289

97,073

38

WORCESTER COLLEGE Notes to the Financial Statements For the year ended 31 July 2023

17 DETAILS OF THE COLLEGE FUNDS

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

Permanent Endowment Funds

Fellowships : A total of 14 funds where income, but not capital, is used to support fellowships.

Research Support : A donation where income, but not capital, is used to support research. Scholarships : A total of 8 funds where income, but not capital, is spent on student scholarships. Studentships : A donation where income, but not capital, is spent on studentships in a named subject area. Donated Collection : A bequest where income, but not capital, can be used to conserve a donated collection. Library and book conservation : Donations and bequests where income, but not capital, can be used to support book conservation and preserve the Old Library.

The Marriott Trust : A donation where income, but not capital, can be used to support the education of the children of the clergy.

Other Funds : Donations and bequests where income, but not capital, can be used for general purposes.

Expendable Endowment Funds

General Fund : A consolidation of benefactions and donations where either income, or income and capital, can be used for the general purposes of the College.

Fellowships : A total of 5 funds where the income and capital can be applied to support named Fellowships in conjunction with the University of Oxford.

Visiting Fellows : A donation where the income and capital can be applied to support visiting fellows.

Gardens and Grounds : A consolidation of benefactions and donations where either income, or income and capital, can be used for expenses relating to the upkeep of the gardens and grounds.

Student Bursaries and Grants : A consolidation of benefactions and donations where either income, or income and capital, can be used for student bursaries and scholarship grants.

Teaching Fund : A consolidation of benefactions and donations where either income, or income and capital, can be used to support teaching.

Other Funds : A diverse group of donations and bequests where either income, or income and capital, can be used for specific purposes including support for fellowships and students.

Restricted Funds

Fellowships : Income used to support named tutorial and research fellowships.

Research Support : Income used to support research in a named subject area.

Scholarships : Income that can be spent on student scholarships.

Studentships : Income that can be spent on studentships in a named subject area.

Donated Collection : Income used to conserve a donated collection.

Library & Book Conservation : Income used to support book conservation and preserve the Old Library. The Marriott Trust : Income used to support the education of the children of the clergy.

Visiting Fellows : Income used to support visiting fellows.

Student Bursaries and Grants : Income that can be used for student bursaries and scholarship grants. Teaching Fund : Income used to support teaching.

The Fabric Fund : Income that can be used for the maintenance of historic buildings.

Other Funds : A diverse group of income and donations to support student activities, fellowships, research, the Library, archives, upkeep of the gardens and maintenance projects.

Designated Funds

Fixed Assets Designated : Unrestricted Funds which are represented by fixed assets of the College and therefore not available for expenditure on the College's general purposes.

Designated : Unrestricted Funds allocated by the Trustees for joint equity and other investment properties.

General Unrestricted Funds represent accumulated income from the College's activities and other sources that are available for the general purposes of the College.

39

WORCESTER COLLEGE Notes to the Financial Statements

For the year ended 31 July 2023

18 ANALYSIS OF NET ASSETS BETWEEN FUNDS


Tangible fixed assets
Property investments
Securities and other investments
Net current assets
Defined benefit pension scheme liability
 Unrestricted
Funds
£'000
33,647
4,833
1,137
(2,496)
37,121		 Restricted
Funds


£'000

-

-

2,226
-

2,226		 Endowment
Funds

£'000

-

-
49,409

6,661

-

56,070		 2023
Total

£'000

33,647

4,833

49,409

10,024

(2,496)

95,417

Tangible fixed assets
Property investments
Securities and other investments
Net current assets
Defined benefit pension scheme liability		 Unrestricted
Funds
£'000
32,945
4,833
-
992
(3,481)
35,289		 Restricted
Funds


£'000

-

-

-

2,191
-

2,191		 Endowment
Funds

£'000

-

-

46,416

13,177

-

59,593		 2022
Total

£'000

32,945

4,833

46,416

16,360

(3,481)

97,073

19 TRUSTEES' REMUNERATION

Trustee 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 consists of a majority of external members and makes recommendations to the Governing Body on levels of remuneration, allowances and expenses.

Trustees of the College fall into the following categories: Provost, Tutorial Fellows, Fellow Lecturers, Professorial Fellows, Supernumerary Fellows, and Official Non-Tutorial Fellows.

There are three trustees who work almost full time on management and fundraising; Provost (full time), Finance and Estates Bursar (full time), and Director of Development & Alumni Relations (full time).

Some trustees, tutorial fellows, are eligible for College housing schemes. Five trustees lived in properties owned by the College and did not receive housing allowance. Others may be eligible for a housing allowance which is disclosed within the salary figures below. Two trustees lived in houses owned jointly with the College, as detailed in Note 25.

Some trustees receive additional allowances for additional work carried out as part time College Officers, for example, the Vice Provost, Senior Tutor and Dean. These amounts are included within the remuneration figures below. The total remuneration and taxable benefits as shown below is £1,881,028 (2021-22: £1,776,787). The total of pension contributions is £257,917 (2021-22: £300,220).

40

WORCESTER COLLEGE Notes to the Financial Statements For the year ended 31 July 2023

TRUSTEES' REMUNERATION (continued

The following table sets out the remuneration received by Trustees as employees of the College:

£8,000 - £8,999
£9,000 - £9,999
£14,000 – £14,999
£15,000 - £15,999
£17,000 - £17,999
£21,000 - £21,999
£25,000 - £25,999
£26,000 - £26,999
£27,000 - £27,999
£28,000 - £28,999
£29,000 - £29,999
£34,000 - £34,999
£35,000 - £35,999
£37,000 - £37,999
£41,000 - £41,999
£44,000 - £44,999
£42,000 - £42,000
£46,000 - £46,999
£47,000 - £47,999
£50,000 - £50,999
£55,000 - £55,999
£56,000 - £56,999
£59,000 - £59,999
£60,000 - £60,999
£63,000 - £63,999
£64,000 - £64,999
£65,000 - £65,999
£66,000 - £66,999
£67,000 - £67,999
£68,000 - £68,999
£69,000 - £69,999
£70,000- £70,999
£72,000- £72,999		 2023
2022
Number of
Trustees
Gross
Remuneration
Number
of
Trustees
Gross
-
-
1
8,343
1
9,252
1
9,197
1
14,823
1
14,638
1
15,929
2
30,424
-
-
1
17,113
1
21,793
-
-
-
-
5
128,880
1
26,211
2
52,546
10
274,214
1
27,243
1
28,507
3
85,109
1
29,803
-
-
-
-
-
34,720
-
-
1
35,056
2
75,430
1
37,751
1
41,307
-
-
1
44,214
-
-
2
85,564
1
46,468
1
46,475
-
-
1
47,277
-
-
1
50,839
-
-
2
111,356
1
56,377
1
56,472
1
59,416
1
59,501
1
60,322
-
-
-
-
1
63,950
1
64,382
-
-
-
-
1
65,077
-
-
2
133,681
4
271,849
1
67,460
2
136,881
2
136,915
-
-
1
69,993
1
70,046
1
70,034
1
72,870
-
-

41

WORCESTER COLLEGE

Notes to the Financial Statements

For the year ended 31 July 2023

£74,000- £74,999
£76,000- £76,999
£95,000 - £95,999
£107,000 - £107,999
£126,000 - £126,999		 1
74,527
-
-
2
152,254
-
-
-
-
1
95,001
1
107,631
-
-
1
126,522
1
136,175
39
1,881,028
40
1,768,447

19 TRUSTEES' REMUNERATION ( continued)

There were five trustees during the year who were not employees of the College and did not receive remuneration. All employed trustees, together with other senior employees, are eligible for private health insurance as part of their package of remuneration.

All trustees may eat at common table, as can all other employees who are entitled to meals while working. No fellow claimed any expenses for work as a trustee.

Other transactions with trustees

During the year the partners of some trustees were paid for providing tutorials for students of the College.

Key management remuneration

The total cost of remuneration paid to key management was £991k (2022: £989k). Key management are considered to be the Provost, the Vice Provost, the Finance & Estates Bursar, the Senior Tutor, the Dean, the Admissions Tutor, the Home Bursar, the Development Director, the College Accountant, the Librarian, the Director of the Visiting Student Programme and the Outreach Fellow.

20 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 each held in separate trustee-administered funds. USS and OSPS schemes are contributory mixed benefit schemes (i.e. they provide benefits on a defined benefit basis - based on length of service and pensionable salary and on a defined contribution basis – based on contributions into the scheme). Both are multi–employer schemes and the College is unable to identify its share of the underlying assets and liabilities relating to defined benefits of each scheme on a consistent and reasonable basis. Therefore, in accordance with the accounting standard FRS 102 paragraph 28.11, the College accounts for the schemes as if they were defined contribution schemes. As a result, the amount charged to the Income and Expenditure Account represents the contributions payable to the schemes in respect of the accounting period.

In the event of the withdrawal of any of the participating employers in USS or OSPS, the amount of any pension funding shortfall (which cannot be otherwise recovered) in respect of that employer will be spread across the remaining participating employers and reflected in the next actuarial valuation of the scheme.

The College has also made available the National Employment Savings Trust for employees who are eligible under automatic enrolment regulations to pension benefits but not eligible for either USS or OSPS.

Schemes accounted for under FRS 102 as defined contribution schemes

Actuarial valuations

Qualified actuaries periodically value the USS & OSPS schemes 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: 31/03/20 31/03/22
Date valuation resultspublished: 30/09/21 27/06/23
Value of liabilities: £80.6bn £914m

42

WORCESTER COLLEGE

Notes to the Financial Statements For the year ended 31 July 2023

Value of assets: £66.5bn £961m
Funding (deficit)/ surplus: (£14.1bn) (£47m)
USS OSPS
Principal assumptions:
•
Discount rate
•
Rate of increase in salaries
•
Rate of increase in pensions		 Fixed Interest gift yield curve
plus 1%- 2.75%a
n/a
CPI+0.05%c		 Gilts + 0.5% -2.25%b
b
RPI
Average RPI/CPId
Assumed life expectancies on retirement at age 65:
•
Males currently aged 65
•
Females currently aged 65
•
Males currently aged 45
•
Females currently aged 45
Funding Ratios:
•
Technical provisions basis
•
Statutory Pension Protection Fund basis
•
‘Buy-out’ basis		 23.9 years
25.5 years
25.9 years
27.3 years
83%
64%
51%		 105%
98%
62%
Employer contribution rate (as % of pensionable
salaries)e:		 21.1% to 21.4% from
01/10/21		 19% down to 16.5% for
DB members from 1 Oct
23
Effective date of next valuation: 31/03/23 31/03/25

Fixed interest gift yield curve plus: Pre-retirement 2.75%,post-retirement 1.00%

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.

RPI inflation is derived from the geometric difference between the UK nominal gilt curve and the UK indexlinked 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. pre-2030 and 0.1% post- 2030.).

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.

Sensitivity of actuarial valuation assumptions

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

43

WORCESTER COLLEGE Notes to the Financial Statements For the year ended 31 July 2023

20 PENSION SCHEMES (continued)

Assumption USS Change in assumption Impact on USS liabilities
Initial pre-retirement discount
rate		 increase 0.25% decrease by £1.3bn
Post-retirement discount
rate		 Decrease by 0.25% increase by £2.8bn
CPI decrease 0.1% decrease by£1.5bn
Life expectancy more prudent assumption (reduce the
adjustment to the line base mortality
table by0.5%.		 increase by £1.2bn
Rate of mortality more prudent assumption (increase the
annual mortality improvements long-
term rates by0.2%		 Increase by £0.6bn
Assumption OSPS Change in assumption Impact on OSPS technicalprovisions
Valuation rate of interest decrease by 0.25% increase by 2% pf pensionable
salaries
RPI increase by 0.25% increase by 1.5% of pensionable
salaries

Deficit Recovery Plans

In line with FRS 102 paragraph 28.11A, the college has recognised a liability for the contributions payable for the agreed deficit funding plan. The principal assumptions used in these calculations are tabled below:

2022/23 2022/23 2021/22 2021/22
OSPS USS OSPS USS
Finish Date for Deficit Recovery Plan 30/09/23 31/03/38 31/01/28 31/03/28
Average staff number increase 1.44% 0% 3.00% 0%
Average staff salary increase 4.00% 2.00% 2.00% 2.00%
Average discount rate over period 0.89% 0.89% 0.89% 0.89%
Effect of 0.5% change in discount rate £10k £20k £10k £20k
Effect of 1% change in staff growth £12k £10k £12k £10k

A provision of £2,496k has been made at 31 July 2023 (2022 - £3,481k) 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

Other Schemes Contributions

 2023
£'000

793
481
1
1,275		 2022
£'000
793
440
1
1,234

Included in other creditors are pension contributions payable of £Nil (2022: £nil).

44

WORCESTER COLLEGE Notes to the Financial Statements For the year ended 31 July 2023

21 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 purposes that are exclusively charitable.

No liability to corporation tax arises in the College's subsidiary company because the directors of this company 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.

22 RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH FLOW FROM OPERATIONS



Net income

Elimination of non-operating cash flows:

−Investment income


−Endowment donations

Depreciation

(Increase)/ decrease in stock

(Decrease)/ increase in debtors

Increase in creditors

Decrease/ (increase) in pension scheme liability

Net cash used in operating activities
 2023
£'000
869

(2,029)
(46)
974
(33)
6,126
913
(985)
5,789		 2022
£'000
3,047
(1,748)
(7,118)
1,007
(4)
(465)
1
1,942
(3,338)

23 CAPITAL COMMITMENTS

The College had no contracted commitments at 31 July for capital projects (2022: £nil).

24 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 FRS102.

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.

Two properties are owned under joint equity agreements between the Trustees, named below, 50% and the College, 50%. Full market values of the properties, following an inspection valuation carried out by Carter Jonas LLP:


2023		 2022

£'000		 £'000
Dr J Parrington


820		 820
Prof J Quinn
730		 730

These trustees do not receive Housing Allowance. All joint equity properties are subject to sale on the departure of the trustee from the College.

One Trustee (Dr Ben Morgan) had a family member or other connected party who was employed by the College on either a permanent or casual basis during the year; neither of these Trustees had supervisory responsibility for the relevant employee or was involved in their recruitment, and all cases have been declared in the register of Trustees’ interests. The total value of these transactions was £16,073 (2022: £14,168)

45

WORCESTER COLLEGE Notes to the Financial Statements

For the year ended 31 July 2023

25 RELATED PARTY TRANSACTIONS (continued)

Funds of £11.7m (2022: £14.8m) are held at arm’s length in the Worcester College Oxford Endowment Trust, which is not controlled by the College but supports the College as its principal charitable objective. The Trust awards the College an annual grant (currently at 4.25% of the value of the Trust’s assets at each year-end).

26 CONTINGENT LIABILITIES

There were no known contingent liabilities.

27 POST BALANCE SHEET EVENTS

There are no post balance sheet events to report.

28 ULTIMATE CONTROLLING PARTY

The Trustees believe that the College does not have an Ultimate Controlling Party.

46