Registered as a charity.. 11 S0037 Worcester College Oxford Endowment Trust FINANCIAL STATEMENTS for the year ended 315t October 2023 DRAFT WORCESTER COLLEGE OXFORD ENDOWMENT TRUST INDEX Page Charity information Trustees, rewrt Report of the auditor Principal accounting pol¢cies 10 Statement of Financial Ath"vities 12 Balan￿ sheet 13 ststemenl of cash flows 14 Notes to the financial statements 15 WORCESTER COLLEGE OXFORD ENDOWMENT TRUST CHARITY INFORMATION Trustees.. Mr D Isaac Mr D Kemper Mr D Loevner Sir Lindsay C>Nen-Jones KBE Mr M Paisner Rt Hon. Sir Timothy Sainsbury Dr J S¢ullK)n Mf B WwJmore Charity Address.. Wor¢ester Colkge Walton SlJeet Oxford OX12HB Charity Registration Number. 115￿37 Bankers: The Royal Bank of Scotland Customer servi￿ Centre Drummond House 1 Redheughs Avenue Edinburgh EH12 9JN Auditor". Crilchleys Audit LLP Chartered A(zountants Beaver House 23-38 Hythe Bridge Street Oxford OX1 2EP WORCESTER COLLEGE OXFORD ENDOYIMENT TRUST TRUSTEES. REPORT The TNslees p￿sent their report tr)gether wrth financial statements for the year ended 31 October 2023. Worcester College Oxford Endowrnent Trust is a wÉslerwJ charity govemed by its Trust Deed dated 29 (klober 2012. Prlnclpal activttigs and objectives The prinapal objectives of the chanty are- 1. to provide finarKial and material assistaThx. er￿Uragement and support to and for the advan￿ment of edu￿tr.0n. religion, leaming and research. at Worcester College,. 2. to preserve arvj maintain the fabric and contents of any buiklings. grourvjs and lan¢ held by Worcester College." and such other charitable pvrrKJses as are connected with the adva￿Ment of education. religion. leaming and research as shall in the opinion of the Trustees from b.rne to b.me be conduthve or comEAemenlary lo the advan¢8menl sUp￿rt ofworcester College. Organlsatlon The Trustees have met once in the Feriod. Administrdtion arKI aC￿UntIng SUPkK¥rt is provided to the charity by Wofcester College The day-to-day managernent is delegated to Mike Huggins, Finance and Estates Bursar. Related parties Worcester College will ￿ the main benefiuary from the Trust and the Trusvs pnncipal objective is to provide grants to the College for various activities. Business and flnan¢ial reviow The principal activity of the Trust is the provision ofgrants to Worcester ￿lege. forvarious ackn"vities. Each year the Trustees of Worcester ColW Oxford EndowTnent Trust will m8ke a grant lo the College for activib'es which are worthy of support and are in aororclance the Trust's objects. The Trustees will approve the grdnl for the year takn.ng into account the propcted income for the year and brought foward reserves which are available lor distribution. Going concem After making appropriate enquiries. the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existen￿ for the foreseeable future. For this ￿aSOn. they continue lo adopt the going concem basis In preparing the finanThal ststements. Further delails regarding the adoption of the going concem basis can be four)d in the Accounting PoI￿les. Achievements and p&rforniance The Trust's principal fuThJing Sou￿$ are donations. During the year the Trust re¢eNed donations of £710,96312022: £736,273). The total market value of the Trust's investments was £14.348,741 at 31 Cktober 202312022". £14.879.372). Publ1¢ b•ngfit reporting The Trustees confim) that they have comE￿Ied wrth the duty in SectN)n 17{51 of the 2011 Charities Act to have due regard to public benefft guidan￿ published by the Charity Commission. WORCESTER COLLEGE OXFORD ENDOWMENT TRUST TRUSTEES, REPORT Trustee Indudion and Training Trustees are fully briefed when apwinted and rf hJrtt)er training is fequired thi5 is arranged as re￿$sary. Inv•stm•nt Performance The objectsve of the Trusfs investment tx)licy is to achieve a rising level of income which increases sufficiently to counteract the impact of inflation a￿1 to meet the Trusts prinapal activity of the prDvision of grants to Worcester College. while at the same time ensuring long terni (apital growth of the Trusys investrnenl portfolio. Rlsk ststem&nt The Trustees have identified the main nsks to which the Charrty is exwsed. Systems and procedures are being developed to mibgate these risks. FinanGial fisk aSseSs￿￿nt Al present the financial risks lo which the charity is exposed a￿ managed by risk diversification and liquidity. The majority of the financial assets 8re cash lunds held at the bank and investments with MFS Invesbmenl Management Company and Oxford University Endowmenl Management. The Charity seeks to ensure sufficient liquidity is available to meetfo￿Seeab1e needs. Charity aims lo hold cash deposits and liquid investsments which are adequate to ensure that volatilty in short tem income should not impact on èxpellditur8 and to ensure thal th8 Chartty is able to continue in its current rnanner should unfr>reseen events arise. Reserves pollcy The Trust has the power under its Trust Deed to accumulate income for a period of 21 years from 29 October 2012. The tmstees have ￿vieWed the chariWs need for reserves in line with the Charity Commission guidelines. The nomial policy is to hold unrestricted reserves to protect against the nsks of shortfalls in cash balances due lo un￿rtaIn￿e5 in ts timing of fundraising opportunities for urreslrict funds. On 31 October 2023 the charity held the follo￿r￿ Reserves.. UnrestriGted general funds Reslncted funds Reserves at 31 October 2023 10.036.920 5,022.902 15,059,822 Funding The charity's assets are available arvl adequate to fuffil its otrAigations. Trustses The trustees. who have served during tha year are listed bel(Av. Mr D Isaac Mr D Kemper Mr D Loevner Sir Lindsay (knn-Jones KBE Mr M P8isner Rl Hon. Sir Timothy Sainsbury Dr J Scott S¢ullion Mr B Wigmofe WORCESTER COLLEGE OXFORD ENDOWMENT TRUST TRUSTEES. REPORT Statemant of Trusta•s' rgsponsibilitios The Trustees are reSponsi￿e for preparirKJ ￿ Trustees, Report ar¥J the financial stslements in accordan￿ with applicable law and United lthnglom Ac￿Mjnting Standards Iunited Kirodom Generalty Accepted Accounting Practs"cel. The law aP￿1(z￿e lo charities in EnglarKI and Wales requires the trustees lo prepare finanual ststemenls, for each financial year, which give a true and fair view of the slate of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these finarKial statements. the trustees are required to: select suitsble accounting w11c￿$ and then appty thern (x)nsistendy: observe the methods and prinryples in the chariti.es SORP". make judgements and estimates that are reasonable and prudent., stale whether applicable accounting standards have been followed. subject to any material departures disclosed and explained in the fin8ncial statements., and prepare Ihe financial statements on the goiro concem basis unless is inappropriate to presume that tlTe charity wll continue in business. The Injstees are ￿spOnsible for keepiro prOpera¢￿vntsrQ records that disclose with reasonable accuracy al any time the finarcial posit'on of the Charity a￿1 enable them to ensure that the financial statements con)ply with the Charities Act 2011, the Chaftty IAGcx)unts and RekK)rt51 Regulations and the provisions of the Trust Deed. They a￿ also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detecb'on of fraud and other irregularityes. Approv by the trustees aThJ signed on their behalf by.. David Loevner Date 202f WORCESTER COLLEGE OXFORD ENDOWMENT TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF WORCESTER COLLEGE OXFORD ENDOWMENT TRUST Independent audltor's r•port to the trustees of Worcester Collegg Oxford Endowmerrt Trust Opinion We have audrted the financial ststements ofworcester College Oxford Endowment Tnjst I'the cbarity,) for the year ended 31 October 2023 which comprise the Ststement of Financsal Acts"vities, the Balance Sheet, the Statement of Cash Flows and notes lo the financial stslements, including signfficanl accounting policies. The financjal reporting framework that has been applied in their preparation is applicable law and Ullited Kingdom AccounknTrJ Standards. induding FRS 102 The Financial Reports"ng Standard applicable in the UK and R8public of Ireland Iunited lQ"ngdom Generalty Aixept&J Accounting Practice). In our opinion, the financial statements.. 'give a Inje and fair view of the state of the charity's affairs as at 31 (knber 2023 aThJ of its in￿ming reSoUr￿S and application of resources for the year then ended., have been property prepared in ac(x>rdanc8 with United Kingdom Generally Accepted Accounting Practice". and .have been prepared in arxordaTKe with the requirements of The Charities Acl 2011. Basi5 for opinlon We conducted our audit in accordance Y￿h Interna￿nal Standards on Alhditing {UKI IISAS {UKII and applicat￿e law. Our resrKJnsibilthes under I￿se standards a￿ further descllL*d in the Auditor's responsibilitRs for Ihe audrt of the financial statements section of our report. We are independent of th8 charity in accordance with the ethical requirements that are relevant lo our audit of the financial ststements in the UK. induding the FRC'S Ethical Stsndard and we have fulfilled our other ethical swnsibilities in a(xordance vthh these requiremerrts. We believe that the audtt evidence we have obtained is Sufficient appfopriate lo provide a basis for our opin¥)n. Concluslons relating to going concern In auditing the financial slalements. we have conc1￿Jed that the dlrectorfs of the going concem basis of accounting in the preparation of the finanaal statements is appropriate. Based on the work we have performed. we have rK)t Identffied any material Ur￿rtalntieS relating to events or condits.ons that, individually or collectively. may Cast S￿nifiCant doubt on the Charity's abilty lo continue as a going concem for a period of at leagt 12 months from ¥then the firkincxal statements are authorised for issue. Our respon￿bIlItIeS and the responsibilrfj.es of the directors respect to goiThJ COn￿M are described in the relevant sections of this report. Other Infofmation The other informab.on comprises the infomiation i￿luded in the annual report, Ind￿lIng the trustees, report. other than the financial statements and our audito¢s ￿port theieon. The trustees are responsible for the other infomiation contained within the annual report. Our opinion on the financial statements does not cover the other information arKI. ex￿p1 to the extent otherwse expliuty slated in our report. we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other infomation and. in doir¥J so. consider whether the other infofmalion 15 materially inconsistent th Ihe financial stslements or our kno%Medge obtained in the course of the audit, or otherwise appea￿ lo be materially misstated. If we Identify such material inconsistencies or apparent Fnaterial misstatements, we are required to detemiine whether this gives rise to a material misstatement in the financial staternents themselves. If. based on the work we have perfomied, we cO￿lUde that there is a material misstatement of thts other infomiation. we are ￿qUired to WORCESTER COLLEGE OXFORD ENDOWMENT TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF WORCESTER COLLEGE OXFORD ENDOWMENT TRUST report that fact. We have nothing to repK)rt in this rega￿. Matters on which we are raquirnd to report by exception In the light of the kno￿edge and understsrKling of the chaiity aThJ its environment obtained in the course of the audit, we have not idents.fied materi81 misstatements in the tnjslees, ￿pOrl We have nothing to reFN)rt in respect of the following matters in ￿lab"On to whith the Charities (Accounts and Reportsl Regulations 2008 require us to repjrt to you if. in OUT opinion= .the infomialion given in the trustees. report is inwnsistent in any matenal respect the financial slatemanls", or "SLrffi¢ient accounting records have Th)t been kepL or •the financial statements a￿ not in agreemerrt with the accounbng reox)rds", or •we have not received all the information and explanabons we require for our audil. Responsibillties of trustees As explained more fully in the trustees, ￿SponSibl1￿.8$ ststement sel out on page 5, the trustees are sponsible for the prepardtion of the finanual ststemenls and for being satisfied that they give a Iwe and fair view. and for such internal control as the tnjslees determine is necessary to enable the p￿para￿On of fina￿184 statements that are free from material misstatement. whetsr due to fraud or error. In preparing the financial statemen15. the trustees are resportsible for assessing the charity's ability to continue as a going concem. disclosing. 3$ applicable. matters related lo going cOn￿M and using the going concem basis of ac£ounting unless the bijslees eitsr Intend to liqtjidate the charity or to cease operatsons. or have no realisbG alterr￿1ve but to do so. Auditor's responsibilities fof the audit of the financial ststements We have been appointed as auditor under sect.on 144 Charit*s Act 2011 and retx)rt in acu)rdance wth the Art and relevant regulab.ons made or having effect Ihereunder. Our objectlV8s are tr) obtsin reasonable assurarKe about whether the finanual ststements as a whole are free frorn material misstslemenl. whether due to fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of aSsUra￿e. but is not a guarantee that an audit conducled in a¢￿[dance with ISAS IUKI will a￿ayS delect a material misststement it exists. Misstatements can anse from fraud or error and are consKJered material rf. indNidually or in the aggregate. they could reasonably k expected to Influen￿ the e(x)nofflic decisiorks of users tsken on the basis of these ffinancial statements. Irregularityes, iThYudiTh3 frdud, are Instan￿ of noTrcomplIan￿ wth laws and regulat￿n$ We desun prO￿dureS in line wtth our responsibilities. outlined above. lo detect material misstatements in respect of irregularities. including fratKJ. The extent to which our procedures are capable of deteGting Ir￿gUIanties, including tra￿1 is detailed below.. the engagement partner ensured that the engagement team collectively had Ihe appropriate competence. capabilikn.es aThJ skills lo ¢denbfy or recognise non-compliarfe with applicable laws afKI regulabons", we identified the laws and regulations applicable to the Charity through di￿UssIOnS with directors and other managemenL and from our knowledge and experience,. we focused on specific lav4s arKI regulatKJns which we COn￿dered may have a direct material effect on the financial stslements or Ihe operdlions of the charity. WORCESTER COLLEGE OXFORD ENDOWMENT TRUST INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF WORCESTER COLLEGE OXFORD ENt)OWMENT TRUST we assessed the extent of compliance wth the laws and regulations identified atrKJve through making enquiries of management arml ir￿￿ing legal correspo[Kler￿e where applicable,. and identified laws and regulations We￿ (x)MmUni￿led wtthin the altdil team regulady and the team remained alert trj instsnces of non-cfjmpliar￿ throughout the audit. We as5es5ed the susceptibility of the charity's finan(>al Statements lo material misst8temenL induding obtaining an understsnding of how fraud might occur, by.. making enquiries of management a5 to where Ihey considered there was susceptibility to fraud, their kTh￿edge of actual, suspected arKI alleged fraud: considering the inlemal controls in place to miti'gate risks of fraud and non-complianc8 With laws and regulations.. arKI To address the risk of tra￿1 through management ￿'aS override of wntrols. we.. performed an8ty￿1 procedures lo tdentsfy any unusual or unexpected relatsonships" tested joumal entries to identify unusual transacb"ons', assessed whether I￿Jgements and assumptions made in detemining the accounting estimates were indicab've of wtential bias,. and investigated the rationale behind signFficant or unusual trdnsactions. In response to the risk of irregularities and rM)rrtompl1an￿ wilh laws and regulations, we designed procedure5 which included, but were not lirnited to.. agreeing finarKial ststement disclosures to uThJerlyiro 5uppM)rb"ng dtxumentation.. reading the minutes of meetyr¥Js ofthose charged with govemance: enquiring of management as to actual a￿1 potenbal lÈbgation a￿1 daims", r8viewing relevant corresp)ndence. There are Inhe￿￿t limitations in our aLKJit prO￿dureS described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non- compliance Auditiry stsndards also limit the audit pr￿ed￿re$ required to identify nonlicies and notes fomi an integral part of these financial statements. 13 WORCESTER COLLEGE OXFORD ENDOWMENT TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2023 As restated 2022 2023 Net income for the reporting period las Fer the staternent of financial activities) Adjusted for.. 380.377 1347.9821 1646 5001 614.1051 415.269 1332.5671 83.5C41 166.202 Non-operatsng cash fl￿￿5.. investrnent income Increaselldecreasel In creditors Not cash lus•d in) I providèd by operating activities Cash flows fr¢)m invèsting activities Dividends. interest and rents from investrnent5 Proceeds from the sale of investments Purchase of investments cash provided by l (usod inl inv¢sting Xtivltie5 347,982 3,321,040 13 150.0151 519.007 332,567 332.567 Cash flows fr<)m financing activiti¢s Change in cash and cash equivalents in thè reporting period 195,0981 498.769 Reconcillation of net cash Ilows to movement in net funds Cash and cash equi¥al8nts at th• beglnning of the rèporting ￿riod 816.379 317,610 Cash and ¢ash equivalents at the end of the r•portlng yritxl 721,281 816.379 All of the cash flows are derNed from continuing operabons. Analysis of ¢ash and cash equivalents A11Nov 2022 Cash Flows At 31 Oct 2023 Cash at bank and in han 816.379 195,0981 721,281 A cl8ssrfi¢ation adjustment has been made in the comparab've cash flow slatement that has no overall impact on the result5 or the prior year funds balance_ 14 WORCESTER COLLEGE OXFORD ENDOWMENT TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2023 1 DONATIONS AND LEGACIES 2023 Total 2022 To Unrestricted Restricted 710,963 736,273 710,963 736,273 2 INVESTMENT INCOME 2023 Total 2022 Total Unrestri¢ted Bank interest recewed Other Investment income 3,087 225,416 228.502 832 210.922 211,754 Restrided Other Investment Income 119.479 347,982 120,813 332,567 3 INVESTMENT MANAGEMENT COSTS 2023 Total 2022 Total Unrestrict8d Bapk charges 72 4 GRANTS TO INSnTUTIONS 2023 Total 2022 Ttslal Grant to Worcester College Unrestricted Restricted 441,165 233.835 675,000 413.279 236.721 650.000 S GOVERNANCE COSTS 2023 Total 2022 Total Unr•stri¢t•d Audit fee 3.500 3.500 3,500 3,500 Cost5 that are allocated on a Direcf basi5 are tharged dirth to ItE project or program¥ne to which they rdate. no apportionnelll of those cost5 is required WORCESTER COLLEGE OXFORD ENt)OWMENT TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2023 6 PAYMENTS TO TRUSTEES AND CONNECTED PERSONS No trustee or person with a family C￿ I￿$1￿¢sS ￿nneCtIOn with a trustee rece¢ved remuneralw)n or expenses in the perh)d directly or indireclly, from erth￿ the charity or an institutK)n (Kcompany Controll￿ by the charity. 7 FIXED ASSETS: INVESTMENTS As restated 2023 Total 2022 Total Listed Investments and cash Market value at 1 November 2022 Additions Disposals Transfer to tyJ￿nt a55ets Net g8inllloss) on revaluation Market vaue at 31 October 2023 14879,372 3.150,015 (3.321,0401 15,519,852 {359.606} 14,348,741 1640.4811 14.879.372 9,319,705 9.319,705 Hislollcal Cost An analysis of the Ioc2tion of the listgj tnvestments of ihe Trust is as follows.. UK Non-UK 2023 Total 2022 Total 1.877.339 12.471.402 14.J48,741 14.580. CREDITORS 2023 Total 2022 Tota Amounts falling due within 1 year 650,000 3,500 3,200 Grant to Worcester College Audit fee Intercompany 3.200 10,200 656,700 16 WORCESTER COLLEGE OXFORD ENDOWMENT TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2023 9 FUNDS As restste(I Unrestricted Restricted Endowed Funds Funds Funds 2023 Total 2022 Total Balance at 1 November 2022 Incoming resources Resources expende(I Other gains and losses 9,829,186 939.465 {444,7321 1286,9981 5.209.866 119,479 1233,8351 172.6091 15.039.OS2 1,058.945 1678,5671 {359,607} 15,264.262 1.068,841 1653.5721 1640.4811 8alarn￿ at 31 o￿ober 2023 10.036,921 s.022.￿2 1S,059,822 15,039,050 Unrgslricteij funds comprise those ftjnds which the ¢harty is free to use Tn the fyrtherance of the charity's prinopal activities. The Reslncted funds a￿ to endow three fellowships al WorGester College," Asa Briggs Humanities Fellowship, the Loevner Tutor & Fell¢Jw in Statistics and Ihe David Wcrt)ds Kemper Family Fellowship In English Literature. A5 restated Unrestricted Funds Reslrricted Funds Endowed Funds 2023 Total 2022 Total Inveslrnents Current assets Current liabilities 9.572.173 474.948 110,2001 4.776,568 246,334 14.348,741 721,281 11Q.2001 14,879,372 816.379 1656.7001 Total net assets 10,036.921 5,022.9)2 15.059,822 15,039.052 10 RELATEO PARTIES During the year the Trust made £675.000 (2022.. £650.(N))l in ￿antS to Worcester College, Oxford. During the year a tmslee. Mr 8 Wigmore donated £710,96312022" £736 2731 DavKI Isaac and Scolt Sujllion are truslees of Worcester College. Oxfc¥d. 11 CONTINGENT L￿BILITIEs There no contingent liabilities as at 31 Octotw 2023. 12 CAPITAL COMMITMENTS There were no capital commitments as at 31 Octobef 2023. 13 POST BALANCE SHEET EVENTS There are rKJ post balance sheet 8vents lo report. WORCESTER COLLEGE OXFORD ENDOWMENT TRUST NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 OCTOBER 2023 14 RESTATED A classrfication adjustment has been rnJJe in the comparabve cash fl(M Statement. Note T and 9 that has no overall impact on the results or the prKY y8ar funds balan￿. 18