Annual Report and Accounts “t2’ University of Cambridge

Lucy Cavendish College“t2’ University of Cambridge

Annual Report and Accounts

For the Financial Year Ending30th June 2017

Lucy Cavendish College Contents

Description Pages

Members of the Governing Body 2

Principal Advisers 3

Report of the Governing Body 4

Corporate Governance and Trustees’ Responsibility 15

Report of the Auditors 18

Statement of Principal Accounting Policies 20

Consolidated Statement of Comprehensive Income and Expenditure 25

Consolidated Statement of Changes in Reserves 26

Consolidated and College Balance sheet 27

Consolidated Cashflow Statement 28

Notes to the Accounts 29

1 For the Financial Year Ending 3O June 2017

Lucy Cavendish College Members of Governing Body during the year to 3W” June 2017

President: Jackie Ashley MAAbbott Ruth BA MPhil PhD, Lecturer, Faculty of English, University of CambridgeBahn Professor Sabine MD PhD MRCPsych, Professor, Bahn Laboratory, University of CambridgeBrearley Jacqueline Chryscillian MA Vet MB PhD DVA Dip ECVAA MRCA MRCVS, Senior Lecturer in Anaesthesia, Department

of Veterinary Medicine, University of Cambridge; Tutor to 17 October 2016 and Acting Vice-President, LucyCavendish College to 1 October 2016

Bright Elizabeth Consultant Anaesthetist, West Suffolk Hospital, Joint Course supervisor, CGCM, Lucy Cavendish CollegeBrindley Sue MA MA MA, Senior Lecturer, Faculty of Education, University of Cambridge to 30 September 2016Cameron Professor Ruth MA PhD MlnstP CPhyS, Professor, Materials Science and Metallurgy, University of Cambridge;

Research Mentor in the Sciences, Lucy Cavendish CollegeClare Isabel Clare Huntingdon BSc MPhil MPhil PhD, Consultant Clinical & Forensic Psychologist, NIHR CLAHRC East of

England; and Cambridge Intellectual & Developmental Disabilities Research Group, Department of Psychiatry,University of Cambridge

Davies Jane BSc MSc PhD MBA DBA, Director, MBA Programme, Judge Business School, University of CambridgeDenton Alice BSc PhD, BBSRC Future Leaders Fellow, Babraham Institute, University of CambridgeGall Astrid, PhD, Research Associate, University Veterinary School, University of CambridgeGibson Jenny PhD, Lecturer in Psychology and Education, Faculty of Education, University of CambridgeGreatorex Jane Suzette BTec FMLS PhD, Senior Research Scientist, Public Health England; Tutor, Lucy Cavendish CollegeGull Sarah Elizabeth MBBS FRCS(ED) FRCOG, Consultant Gynacologist, West Suffolk Hospital; Joint Course Supervisor,

Graduate Medical Course, and Curator, Lucy Cavendish College;Hakenbeck Susanne BA MPhil PhD FSA, Lecturer, Department of Archaeology and Anthropology, University of CambridgeHarvey Victoria PhD, temporary Admissions Tutor from 1 October 2016 and Tutor from 17 October 2016, Lucy Cavendish

CollegeHendriks Henriette PhD, Head of Department of Theoretical and Applied Linguistics, University of Cambridge, Research

Mentor in the Arts from 1 October 2016, Lucy Cavendish CollegeHoughton Margaret Christine BA MA, Domestic Bursar and Wine Steward, Lucy Cavendish CollegeHowarth Emma, Senior Research Associate, NIHR CLARHC, from 10 May 2017Howe Professor Christine Joyce BA PhD AcSS, Professor, Faculty of Education, University of Cambridge; Research Mentor

in Social Sciences, Lucy Cavendish CollegeJabado Hanadi, MA, Executive Director, Entrepreneurial Centre, Cambridge Judge Business School, from 10 May 2017Jackson Susan MA PhD CEng, Research Development Coordinator, Department of Engineering, University of Cambridge;

Tutor, Lucy Cavendish CollegeMaddison Isobel Judith BA MA PhD, Vice-President from 1 October 2016 and College Lecturer in English, Lucy Cavendish

CollegeMahon Annette BSc PhD, Assistant Senior Tutor (Graduates), Lucy Cavendish College,Nugent Eileen Mary BSc MPhil DPhil, Early Career Lecturer, Biological and Soft Systems, Cavendish Laboratory, University

of Cambridge, Tutor, Lucy Cavendish CollegeOttewell Karen PhD, Director of Academic Development & Training for International Students, Language Centre, University

of Cambridge;_Tutor_and_acting_Praelector,_Lucy_Cavendish_CollegeParodi Teresa, Lecturer, Department of Theoretical and Applied Linguistics, University of CambridgeRath Spivack Orsola MA PhD, Senior Research Associate, DAMTP, University of CambridgeRoche Helen Barbara Elizabeth BA MPhil PhD, Tutor, Lucy Cavendish CollegeStoeber (Kathryn) Leigh BS MS PhD, Senior Tutor, Lucy Cavendish CollegeTaylor Helen Louise MA MBBS MRCP FRCR, Consultant Radiologist, Addenbrooke’s Hospital, Deputy Steward and Silver

Steward, Lucy Cavendish CollegeThompson Lesley Margaret MA MA ACA, Bursar, Lucy Cavendish CollegeTomlinson Emily MA MA MPHIL PHD PGCHE FHEA, Admissions Director, Lucy Cavendish College to 30th September 2016Van Anne-Laura, PhD, Postdoctoral Research Fellow, Department of Psychiatry, University of Cambridge; Tutor, LucyHarmelen Cavendish College to 31 December 2016Vinnicombe Alison Annette BA MA Dip RSA, Finance Tutor and Dean, Registrar, Secretary to Council and Secretary to Governing

Body, Lucy Cavendish CollegeWalter Dr Fiona MA MB BChir MSc MD DCH FRCGP, Clinical Principal Research Associate in Primary Care Cancer Research,

University of Cambridge to 30 September 2016Westwood Sarah Elizabeth BA MA, Development Director, Lucy Cavendish CollegeWilson Dr Shona BSc PhD, University Lecturer, Department of Pathology, University of CambridgeYotova Rumiana Vladimirova LLM PhD, College Teaching Officer, Law, Lucy Cavendish College

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Lucy Cavendish College Reference and Administrative Details

Lucy Cavendish CollegeLady Margaret RoadCambridgeCB3 OBU

Charity Registration Number: 1137875

Charity Trustees — see list on previous page

Senior Officers:President Jackie Ashley MAVice-President Dr Isobel Maddison BA MA PhDSenior Tutor Dr Leigh Stoeber BS MS PhD, Dr Stephanie EllingtonBursar Mrs Lesley Margaret Thompson MA ACA

Principal Advisers:

Actuaries: Property Valuers & Consultants:Cartwright Group BidwellsMill Pool House StonecrossMill Lane, Godalming Trumpington High StreetSurrey CambridgeGUi 1EY CB22 9SU

Auditors: Securities Managers:Peters Elworthy & Moore UBS Wealth Management (UK) LtdSalisbury House, Station Road 1 Curzon StreetCambridge LondonCR1 2LA WU SUB

Smith & Williamson25 MoorgateLondonEC2R GAY

Bankers: Solicitors:Barclays Bank Taylor Vinters9-11 St Andrews Street Merlin Place, Milton RoadCambridge CambridgeCB23AA CB4DDP

3 I For the Financial Year Ending 30th June 2017

Lucy Cavendish College Report of the Governing Body

Introduction

l.ucy Cavendish College was founded in 1965 as a Collegiate Society. Initially a graduate Foundation, it admitted its firstundergraduates in 1972. It became an Approved Foundation of the University of Cambridge in 1984 and then in 1997it was incorporated by Royal Charter and achieved full college status as a College for women of 21 and over. TheCollege is an autonomous, self-governing community of scholars and one of the 31 colleges within the University ofCambridge. The College is a registered charity (number 1137875) regulated by the Charity Commission and itsregistered office is Lucy Cavendish College, Lady Margaret Road, Cambridge CB3 OBU.

Lucy Cavendish College admits women who are aged over 21 as full-time undergraduate and full- and part-timepostgraduate students matriculated within the University of Cambridge. The College provides with the University aneducation of the highest quality through small group teaching, academic supervision, library, computing and culturalfacilities, meals and living accommodation and some support for students in personal or financial need.

The College is primarily situated on a site just north-west of central Cambridge bounded by Madingley Road and LadyMargaret Road. It is based around three converted 19th century villas together with newer purpose-built facilitiesincluding student accommodation, porters’ lodge, library, teaching rooms, dining hall, gym and other common spaces.There is onsite accommodation for 91 students with a further 98 rooms (including 10 flats) owned by the College nearits main site, primarily at its new student centre at 100 Histon Road which was opened in 2014.

Aims and Objectives of the College

The principal objects of the College, as set out in its Charter, are:

• to advance education, religion, learning and research in the University;• to provide for persons who shall be members of the University a College wherein they may work for Degrees

of the University or may carry out postgraduate or other special studies at Cambridge provided that nomember of the College or any candidate for membership thereof shall be subject to any test of a religious,racial, political or social character.

Mission: Lucy Cavendish College seeks to enable outstanding women aged 21 and over to achieve their academicambitions within the University of Cambridge at a time of their lives that suits them.

For the current period the College has adopted the following Aims:

1. To stimulate an intellectual environment that enables students and Fellows to maximi5e their academicpotential

2. To make Lucy Cavendish the College of choice for women aged 21 and over within the University of Cambridge3. To engender a collegial community which offers support for women to develop4. To enhance the College’s academic reputation5. To make a greater impact within the University and also nationally and internationally6. To secure the College’s financial future

During 2016/17 the Governing Body has been undertaking a review of the mission and aims and will shortly beupdating its strategic plan.

Public benefitThe trustees of the College have considered the Charity Commission’s guidance on the operation of public benefitunder the Charities Act 2011 and consider that the requirements have been met under the Charity’s objects andactivities. A full statement of the public benefit provided by the College has been lodged with the Charity Commission.

For the Financial Year Ending 3O” June 2017


In summary, the College provides, in conjunction with the University of Cambridge, an education which is recognisedinternationally as being of the highest standard for some 360 mature undergraduate and postgraduate femalestudents. This education develops students academically and promotes their community and interpersonal skills, andso enables them to play enhanced and effective roles in society. This world-class education is provided to women agedover 21 who have the highest academic potential whatever their means or religious, racial, political or socialbackground.

In particular the College provides:

• Teaching facilities and individual or small-group teaching (supervisions),as well as pastoral, administrative andacademic support through its tutorial (pastoral) and graduate mentoring systems; and

• Social, cultural, musical, meditational and recreational and sporting facilities to enable each of its students torealise as much as possible of their academic and personal potential whilst studying at the College.

• A community in which women students from diverse, sometimes challenging, backgrounds can achieve theirfullest capabilities at a time in their lives and in an environment best suited to their needs.

The College advances research through:• Providing Research Fellowships to outstanding women academics at the early stages of their careers, which

enables them to develop and focus on their research in this formative period before they undertake the fullresearch, teaching and administrative duties of an academic post;

• Supporting research work pursued by its other Fellows through promoting interaction across disciplines,providing facilities and providing stipends or grants.

• Encouraging visits from outstanding academics from abroad; and• Encouraging the dissemination of research undertaken by members of the College through the publication of

books and papers in academic journals or other suitable means.

The resident members of the College, both students and academic staff, are the primary beneficiaries and are directlyengaged in education, learning or research. The President and Fellows of the College receive a number of benefits asbeneficiaries comprising small research, book or travel grants etc. These benefits are provided with the intention offurthering the College’s aims, primarily that of advancing research. The amounts of the benefits provided areobjectively reasonable, measured against the academic benefits made available to other beneficiaries of the College.

Beneficiaries also include students and academic staff from other Colleges in Cambridge and from CambridgeUniversity more widely together with visiting academic staff and students from other higher education institutions.

In addition, the wider public has access to the College through a series of talks and seminars and the College’sparticipation from time to time in public schemes such as Open Cambridge and the National Open Gardens scheme.

Scope of the financial statementsThe consolidated financial statements cover all the activities of Lucy Cavendish College and its subsidiary company,Lucy Cavendish Trading Ltd.

These accounts are presented in the format of the Recommended Cambridge College Accounts (RCCA) which complieswith the 2015 Higher Education SORP (Statement of Recommended Practice: Accounting for Further and HigherEducation). This SORP reflected the changes to UK Generally Accepted Accounting Practice (GAAP) following the issueof Financial Reporting Standard (FRS) 102 which came into effect for financial years beginning on or after 1 January2015.

The commentary that follows is intended to give the readers of the financial statements an overview of the financesand operations of the College.

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Summan Financial Results

The total surplus (increase in net asset5) of the College for the year was £1.9m comprising an unrestricted deficit of£315k, a restricted deficit of £119k, offset by surpluses in endowment income of £2.3m, primarily arising from newendowments of Elm and a gain on investments of fl.3m.

FundingOverall income before gains on investments and on pension schemes was £5.3m. The College’s main sources ofincome are academic fees £L3m, accommodation & catering £2m and donations & endowments of £l.6m.

Income 2016/17 2015/16£000 £000

Students: college fees 1,150 22% 1,118 25%Cambridge Bursaries 200 4% 76 2%accommodation & catering 1,438 27% 1,372 31%

Conference accommodation & catering 586 11% 559 12%Investment income 238 4% 212 5%Donations and endowments 1,607 30% 1,115 25%Other income 90 2% 44 1%Total 5,309 100% 4,496 100%

ExpenditureTotal expenditure was f4.7m, comprising staff costs £2m, other operating expenditure £2.lm and the balance beingdepreciation of £675k. This expenditure is primarily allocated to Education Urn, and Residences, catering andconferences £2.Sm.

At 30 June 2017 the value of the investments was £12.Sm, mainly invested in the College’s amalgamated investmentportfolio. Overall net assets were £43m.

As the full costs of education are not met by Academic Fees and Charges, return on endowment (investment income)is a critical element to bridge this gap in all Cambridge colleges. However, colleges differ enormously in the size oftheir endowment and hence the return available from it. An arrangement exists for the better endowed colleges tosupport those colleges with smaller endowments via the University of Cambridge through the Colleges’ Fund. As acollege with one of the smallest endowments by a long way, Lucy Cavendish College is regularly a beneficiary of thisscheme and in this year received £735k by way of a grant to be added to endowment and this is included in donationsand endowment income above (E637k in 2015/16).

Achievements and performance

Academic and College CommunityHaving gone through a rapid period of growth over the last ten years, the College now has approximately 360students. Applications to College rose overall by around 30%.

2016/17 was another year of great academic success for our students with 82% of our students achieving a First or 2idegree. In MASt (Mathematics) students achieved Merits and a Distinction and we also had 5 Distinctions amongstour MPhil students.

The overall effect of these results was to raise the College to 18tF place in the Tompkins Table (a table which rankscolleges according to exam results), a rise of 8 places from the previous year and top of the mature colleges. This isalso the highest ever place a mature college has reached.



Support for students continues to be a focus point for the College:

• The Library, always important throughout the academic year, instigated twice a week tea and coffeegatherings which proved so popular that they were increased to daily during exams. Also within the library, arerooms dedicated to relaxation and time out from studies.

• During the exams we continued with the popular Take-a-break sessions and will build upon these in comingyears.

• 2016/17 was the first year we engaged a College Counsellor one full day a week. This is a service offered bythe University Counselling Service and already in place in several other colleges. It proved popular and offersan alternative method for students to engage with help towards improving their mental health.

• We held a speed mentoring event in collaboration with Astra Zeneca.

Developing our College Community is another key area of activity - for several reasons some of the plans in this areahad to be postponed in 2016/17 but it is hoped will be brought to fruition in the coming academic year. Successfulactions in this area were:

• Recruitment of new Research Fellowships• Further development of the scheme whereby the College invites Post-Doctoral researchers to become

Research Associates of the College

Our students were successful on many fronts other than just their academic performance.

Record numbers of prizes were awarded:

• 74 awards for travel and research allowances and sports — all only given to students presenting at academicmeetings or representing their countries in sport.

• Sporting prizes increased with 5 prizes for full blue5 in Rugby, Rowing and Football and 2 half-blues in Rowingand Fencing.

• Students also gained University and other prizes in Education, Medicine, Creative Writing, Arts and manymore.

Our rowers continued to be successful, culminating in the Hughes Hall/Lucy Cavendish College Boat Club enteringthree crews to the May Bumps. The women achieved a Pegasus Cup score of 44 which took them to the top of theleague. Since the boats were predominantly Lucy rowers, 2017/18 will see an exciting new era for the Boat Club withthem rowing alone, no longer in association with Hughes Hall.

Fellows also achieved success during the year with some brief highlights as follows:

• Professor Ruth Cameron was awarded the UK Society for Biomaterials Presidents Prize, which aims to

recognise outstanding contributions during a lifetime career to the UK Biomaterials field. She received the

award and gave the keynote lecture at their annual meeting in June 2017.

• Dr Jacqueline Brearley was awarded a 2017 Pilkington Prize for excellent teaching in her roles as Senior

Lecturer in Anaesthesia at the Department of Veterinary Medicine, and Director of Studies at Lucy Cavendish

College.

• Dr Isobel Maddison is President of the International Elizabeth von Arnim Society and had a successful year

raising the profile of the writer through the Society’s first joint conference with the Katherine Mansfield

Society and as co-editor of a special double issue, entitled Re-evaluating Elizabeth von Arnim, published inJune 2017 by Women: A Cultural Review (Vol 28).

• Dr Astrid Gall took up a new post as a Research Associate (Bioinformatics) in the Department of Veterinary

Medicine, Laboratory of Viral Zoonotics & Disease Dynamics Unit. She was also an invited speaker at the



• American Society for Microbiology Microbe 2017 conference in New Orleans, and gave a talk on ‘Evolution of

blood borne viruses: Outcomes and challenges of big data analysis’.

• Dr Rumiana Yotova was awarded an Early Career Fellowship at CRASSH (Centre for Research in the Arts, SocialSciences and Humanities) for 2017—18, where she will be working on her monograph on ‘The Public Policy ofInternational Law’.

• Dr Isabel dare, along with colleagues at the University of Cambridge and elsewhere, was awarded several

significant grants this year including £2.6m from the Wellcome Trust for which she is a ‘core collaborator’ and

£1.4m from National Institutes of Health (NIH), USA, for a five-year study entitled ‘Neurodegeneration in

Ageing Down syndrome (NiAD); DrClare has also been accepted as a mentor for the NIHR/HEE Mentorship

Programme for Integrated Clinical Academic Fellows (Nurses, Midwives, Allied Health Professions, etc.)

• Dr Emma Howarth was appointed as a trustee for Safer Places, a large independent charity which provides a

comprehensive range of services to adults and children affected by all forms of domestic abuse.

• Dr Karoline Kuchenbaecker (Junior Research Fellow) was appointed Senior Lecturer in the Genetics Institute

and Division of Psychiatry at UCL, just two and a half years after finishing her PhD.

• Dr Katharina Karcher (Junior Research Fellow) also had exceptional success in being appointed to a lectureship

in the German department at the University of Bristol.

• Baroness Shami Chakrabarti was welcomed as a new Honorary Fellow on 2 March 2017. Baroness

Chakrabarti is the Shadow Attorney General and a member of the House of Lords. She is Chancellor of the

University of Essex, Honorary Professor of Law at the University of Manchester, Honorary Fellow of Mansfield

College, Oxford and a Master of the Bench of Middle Temple. She was Director of Liberty, the National Council

for Civil Liberties from 2003 to 2016, and a member of the panel of the Leveson Inquiry.

• Amongst a range of other exciting events, talks and initiatives an important highlight in the year is the Lucy

Cavendish College Fiction Prize, one of a number of ways in which the College supports creative writing. This

prize is awarded annually to an unpublished female novelist over the age of 21. In this its 7th year the winner

was Sarah Ward from Glasgow, with her novel: Resurrection, Port Glasgow. The Prize continues to be very

successful in launching literary careers with several writers from previous shortlists having had their work

published, including Gail Honeyman, whose novel: Eleanor Oliphant is completely fine achieved great critical

and popular success during the year.

Widening accessLucy Cavendish College is the only women’s college in Europe for postgraduates and undergraduates aged 21 and

over. Its intake is one of the most diverse in Cambridge: we currently have students from around fifty countries. Most

of our first-time UK undergraduates have not taken a traditional route into university, many holding Access Diplomas

or comparable qualifications, rather than A-levels; other undergraduates come to Lucy Cavendish as career changers

or affiliated students, subsequent to completion of a degree elsewhere; we also attract a diverse cohort of

international students each year. We draw particularly high levels of applicants in Human, Social and Political Sciences,

English, Law, and Medicine. As part of its agreement with the governmental Office of Fair Access, the University of

Cambridge has committed to admitting 62-64% of its British first-time undergraduates from the state education

sector, and 10-13% from neighbourhoods where there is a low rate of progression to university. Lucy Cavendish

frequently exceeds both these targets and a significant proportion of our undergraduates are the first in their families

to undertake higher level study. The College has a reputation for the support it gives to its students and its concern for

welfare as well as academic achievement.

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Student Support

In order to assist undergraduates entitled to student support, the College provides, through a scheme operated incommon with the University and other Colleges, bursary support (the Cambridge Bursary) for those with limitedfinancial means. Students over 21 at the start of their course are automatically considered for an enhanced award. Inaddition, the College actively seeks support for and gives other awards and bursaries to its undergraduate andgraduate students (fl73k in 2016/17).

Financial Review

IncomeFurther detail regarding the different sources of income is given below:

Academic Fees and Charges (13% increase)The College charges:

• fees at externally regulated rates to undergraduates entitled to student support with those undergraduate

fees generally being paid by loan funding through arrangements approved by the Government

• fees determined by the College annually to overseas undergraduates and any Home/EU undergraduates notentitled to student support.

The College receives a proportion of the fees charged by the University to graduate students based on a full time

equivalent per capita allocation.

Whilst in practice overall student numbers in College fell slightly during the year, total fee income rose as the amountreceived also depends on the mix of students. In 2016/17, including visiting students, there were 129 (15/16: 132)undergraduates and 188 (15/16: 204) fee-paying graduates, of whom 31 (15/16: 34) were part time. A further 39(15/16: 24) graduate students were exempt from paying fees.

Also included under this heading is income received relating to the Cambridge Bursary scheme. The amount received

rose significantly by 163% as it relates to the number of students in any year who qualify for the scheme and in

2016/17 eligibility was extended to a broader range of students. This income is offset by expenditure on the scheme

which also increased sharply.

Residences, catering and conference income (5% increase)This heading covers both income received from students and from conference guests.The College charges accommodation, meal and service charges at reasonable rates to its students and income related

to these areas increased by 5%.

Ongoing efficiencies and increased rent charges, progressively bringing these closer to actual costs, are a key part ofseeking to ensure the College’s financial sustainability. Funds collected contribute to the economic cost of meals

within College and support further investment in the college kitchens. The College seeks to balance the need to offeraffordable rents and charges for students whilst at the same time ensuring that the College has the necessary funds tomaintain its student accommodation and catering facilities, undertaking necessary refurbishment and maintenance.

Income received from conference accommodation and catering charges also increased by 5% in total.

As ever, the income derived from conferences is critical for the College’s finances and significant efforts are made tofill rooms and provide a good service to guests so that the College’s ongoing costs are covered, particularly during



vacation periods. Income from conference accommodation increased by 1%, whilst income from conference cateringwas up by 8%.

Investment income (12% increase)Investment income to the endowment represents dividend and interest receipts together with rental income relatingto an investment property.

The Governing Body Fellows are the Trustees of the College, governed under the Trustee Act 2000. Their investmentpowers are defined in Statute 44 of the College’s Statutes and they have overall responsibility over the College’sinvestments. Governing Body has responsibility for approving investment objectives, agreeing risk and return targets,performance benchmarks and the investment manager structure. The Governing Body delegates the detailed aspectsof the oversight of the investment arrangements to the Investment Committee who in turn appoint investmentmanagers to be responsible for day to day management of the investments in accordance with agreed guidelines.Overall, the financial objective of the Fund i5 to maintain at least the real value of the assets whilst generating a stableand sustainable return to help fund the college’5 operations each year. To this end, a diversified portfolio with astrategic asset allocation including most or all of UK and Overseas Equities, Bonds, Cash, Alternative Investments andCommercial Property is maintained with due regard for socially responsible investments consistent with the College’scharitable status and its ethos.

The College has for some years adopted a Total Return approach which takes account of capital gains and Io5ses oninvestment as well as income. The portfolio performance return for the year including additions was 15.7%. Within theCollege’s Total Return Spending Rule the aim i5 to derive a sufficient and regular return substantially to offset theshortfall in public funding for the College’s core educational activities; in recent years the Governing Body hasapproved a transfer amounting to 5% but decided that this year the amount transferred should be 4% to bring theCollege more in line with current views on an appropriate ‘spending rate’ to preserve capital. This meant that f477kwas transferred from endowment to the income & expenditure reserve. Had 5% been transferred as previously, thefigure would have been 697k and there would have been a consequent decrease of £Slk in the unrestricted and 69kin the restricted deficits and a reduction on the endowment surplus of £120k.

Donations (44% increase)Excluding the Colleges’ Fund grant and release of income from earlier capital grants (deferred capital), donations andnew endowments rose by 82%.

This year the College received its largest ever lifetime gift, in the form of shares in the Cambridge based companyAbcam plc valued in excess of 620k. The generous gift came from Abcam’s Chief Operating Officer Jim Warwick, thehusband of our alumna Jane Dominey who completed her PhD in Criminology in 2015. The donation has establishedan endowed fund to support an annual bursary for an undergraduate student and an annual scholarship for a graduatestudent, with additional provision for hardship funds.

Other major donations towards student support were received from the MariaMarina Foundation, the Ernest HechtCharitable Foundation, Santander UK plc, The Thriplow Charitable Trust and the l.ucy Cavendish Alumnae Association.We would also like to pay special tribute to the late Sir David Tang for his generosity.

Mrs Jenny and Dr Graham Chinner continued to support the fund they established to finance Vets’ and Medics’electives. Baroness Cohen and her husband Jim demonstrated their steadfast commitment by funding bursaries forstudents most in need, and Baroness Cohen generously hosted and sponsored a fundraising dinner at the House ofLords for our Honorary Fellows and friends. Emeritus Fellow, Dr Lindsey Traub, funded a rowing bursary to supportboth the academic achievements and extracurricular activities of one of our most talented students.

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We are very grateful to those donors who asked for their donations to be allocated to the areas of greatest need or tohelp build our endowment, the income from which supports every area of the College’s activity. Sincere thanks goes toMr Keith Maddocks, Dr Sylvia Lynn-Meaden (Social Anthropology, 1976), Dr Carol Atack, (Classics, 2006), Dr Patricia

Alireza (Natural Sciences, 1999) and Dr Barbara Wittman (Archaeology, 1975). As ever, the College is very grateful for

the contribution it receives from the Colleges’ Fund: this year we received 035k.

Our research community continues to be enriched through a research fellowship funded by the Sutasoma Trust and a

legacy from former President Dame Anne Warburton DVCO CMG has endowed an award to support Fellows andResearch Fellows engaged in original research of academic distinction.

Over the last twelve months we have strengthened relationships with corporate partners. AstraZeneca sponsored aspeed mentoring event and further events are in the pipeline. Peters Fraser and Dunlop (PFD) continued to sponsor

our increasingly successful Lucy Cavendish Fiction Prize. Planning is underway for an event in November in

collaboration with Aviva “Women in Tech: not the usual suspects” which will explore why few women pursue careers

in the digital world. J.P. Morgan sponsored an event at the College with the French Ambassador, Her Excellency Sylvie

Bermann.

Gifts over Bk were received from Dr Cynthia Glassman (Economics, 1976) and Emeritus Fellow Dr Ruth Jones.

This year the College ran its first telephone campaign since 2010. The warmth and generosity of those who were called

was testament to the strong place Lucy Cavendish holds in people’s affection. We were delighted to raise over £36k

and have the support of 92 new donors.

We are extremely grateful to all our benefactors and feel very fortunate to have such a loyal friends and supporters.

Other income (107% increase)This heading covers receipts from photocopying, merchandise, fees from Visiting Fellows together with surplus sumson educational projects.

ExpenditureExpenditure has increased by 12% overall.

Education expenditureThere has been a total increase of 22% in education costs with greater expenditure particularly in the areas of tutorial,research and scholarships and awards.

In common with all Cambridge colleges there is a shortfall on the core education accounts (fee income set againsteducational expenditure) of £626k in 2016/17 compared with E430k in 2015/16.

Residences, catering & conference costsThese costs have increased by 5% overall with the main increases occurring in the cost of student accommodation (6%increase) and in catering for conference guests (8%).

The College’s combined ‘Residences, Catering and Conferences’ income has increased by 5% overall (E2.024mcompared with f1.931m in 2015/16). Expenditure has increased by 5% overall (f2.486m compared with £2.362m).These expenditure figures represent a full cost allocation including all overheads. As the net result is a deficit it showsthat there is still some way to go before the College is fully able to recover all costs. If fixed overheads are excluded itis clear that the conference trade still makes an important contribution to the College’s finances.



Balance SheetThe College Balance Sheet shows a Net Current Asset position at the year-end of f 327k (2015/16 £391k) indicatingthat the College is generating working capital.

Non-current assetsNon-current assets total £49.24m. These include Tangible Assets of £36.74m including properties, furnishings, IJ. andother equipment. Investments of £12.Sm make up the balance of the non-current assets. This year the total capitalinvestment in new Tangible Assets was £211k whilst after disposals and depreciation there was an overall decrease of£472k. Investment assets have increased through net additions and appreciation by £2.47m.

ReservesThe College’s overall reserves stand at £43.098m up fl.918m from £41.18m in the 2016 accounts.

All income and expenditure, however derived, goes through the Statement of Comprehensive Income and Expenditureso the total movement on reserves is equivalent to the comprehensive income (or expenditure) in the year. Thus theoverall comprehensive income of f1.918m is also the increase in net assets and in overall reserves.

Of the total reserves at 30 June 2017 71% is held in unrestricted funds, 3% in restricted (only to be used for specificpurposes according to donors’ wishes) and 26% in endowed funds (capital to be retained and income only to bespent). This compares with 75%, 3% and 22% in the comparative figures at 30 June 2016.

During 2016/17 unrestricted funds decreased from £31.079m to £30.77m whilst total endowment funds grew from£8.718m to £11.071m. Restricted reserves decreased from E1.383m to £1.257m as a concerted effort was made toutilise accumulated income on historical funds. When funds are received for a specific purpose, the College seeks toensure that expenditure is made as swiftly as possible in line with donors’ wishes but in some cases, particularly wherethe funds were received at an early stage in the College’s history, it has proved difficult to meet the terms of therestrictions and funds have continued to build up.

Reserves policyA high level of capital is required for the College to fulfil its role within the University and survive for the long term.Capital is needed to build and replace operational buildings and to provide income to meet operational expenses, ofwhich the largest single element is salaries for academic and non-academic staff. It is worth noting that the total valueof Tangible Assets at £36.738m exceeds the value of the unrestricted funds at £30.77m so there are essentially noquickly available ‘free’ reserves. Lucy Cavendish College remains significantly under-capitalised as it strives to meet itsrunning costs and to provide an appropriate environment and level of service to its students and Fellows. The Colleges’Fund currently uses a mathematical model to determine the capital needs of a college based on a range of variablesand the fact that the College is one of the largest recipients indicates the severity of its need. All Cambridge Collegestake an intergenerational equity view of their reserves and Lucy Cavendish too seeks to maintain an equitable balancebetween the needs of its present members and those of future generations so must seek to maintain its endowmentreserves over the longer term.

The College relies on the total return from its investments both to fund the difference between its annual expenditureand operating income and to maintain the real value of the Charity’s assets and future income. It does not foresee thissituation changing for many years. The Charity seeks to maintain its reserves at a level that generates a total returnsufficient to meet these objectives over the long term. The total return target of its investment portfolio is the RetailPrice Index rate of inflation plus 3% net of fees. The Reserves Policy does not preclude the Governing Body authorisinga reduction in the reserves below the above defined level if it wishes to implement specific initiatives that are likely toaccelerate the fulfilment of the College’s strategic objectives.

CashflowOperating cash levels are generally held at low levels and historically cashflow has required very careful management,particularly through the summer period July to September, however this is steadily improving as income increases andcredit control is tightened. Net cash inflow from operating activities in 2016/17 was positive at just over Lim.

12 I For the Financial Year Ending 30 June 2017


However, there was a net outflow overall of £422k as cash was utilised in capital expenditure, purchase of investmentsand to pay interest on loans.

Staff costs and pensionsThe College makes pension fund contributions on behalf of its employees to defined benefit funds: the UniversitiesSuperannuation Scheme (USS) and to a defined contribution scheme with NOW pensions. The College previouslycontributed to another defined benefit scheme, the Cambridge Colleges Federated Pension Scheme but it no longerhas any active members in this scheme. However, the College continues to make payments to this scheme in order tocontribute to the deficit which it has accrued. Total payroll costs increased by 9% over the year as total staff (academicand non-academic) numbers rose from 74 to 80 and there was a general pay increase of 1% plus £100 for eachemployee.

EmployeesNo trustees are paid for being a trustee but in order to fulfil its charitable purposes, the College employs some Fellowsas College Lecturers, Supervisors, Directors of Studies, Tutors and senior Administrative Officers (all of whom, alongwith the President serve as charity trustees as members of the Governing Body).The employment of the President andFellows is undertaken with the intention of furthering the College’s objectives and their employment directlycontributes to the fulfilment of those aims. The private benefit accruing to the President and Fellows through salaries,stipends and employment related benefits is objectively reasonable, measured against academic stipends generally,and indeed is generally modest when compared with those of other colleges in Cambridge. Without the employmentof Fellows, the College could not fulfil its charitable aims as a College within the University of Cambridge. The totalnumber of Fellows in the year was 39. The College also employs a further 41 members of staff and engages othercasual staff as necessary to provide the professional and service support necessary to run the College. Salaries andremuneration are reviewed annually by the Salaries & Remuneration Committee, the majority of whose members areFellows in the College who do not receive a stipend together with external members who are completely independentof the College.

Carbon ReductionThe College is a member of the Cambridge Colleges’ Carbon Reduction Commitment Consortium through which thecolleges work together to meet their obligations under the Government’s current CRC Energy Efficiency scheme and toensure that matters of environmental sustainability are considered in college operations.

Maintenance of buildings and capital expenditureTotal capital expenditure during the year was £211k. Much of this was IT-related: upgrading the Wi-Fi system inCollege, purchasing new switches for the network, the first year of investment in a new IT business system and thenormal rolling programme of upgrades; the remainder of the expenditure was on refurbishment of the studentcommon room, bar, library foyer and group study areas, new hot water cylinders and boilers and generalrefurbishment in accordance with a programme of planned maintenance; and the purchase of Library books.

Major capital items planned during 2017/18 include a refurbishment of the College gym, further investment in theCollege’s business IT systems and updating of IT storage and resilience. Various areas of building refurbishment arealso planned.

Principal risks and uncertaintiesThe College is currently in a financially stable position with these accounts showing: cash generation, positive netassets, a strengthened Balance Sheet and growth in overall net assets. However, there is still a deficit on unrestrictedoperating expenditure after depreciation. As before, the main risk remains the College’s financial sustainability overthe longer term as the College is significantly underendowed. The return on endowment is critical to all Cambridgecolleges in allowing them to bridge the gap between fee income received and the full costs of education. A largerendowment with greater return would also provide funds to undertake the necessary investment and development ininfrastructure and service which all institutions must make to remain sustainable for the long term. Critically, in thecurrent political and economic circumstances, a larger endowment would offer some protection against the impact ofa variety of changes in an uncertain landscape.

13 For the Financial Year Ending 30th June 2017


An ongoing focus on cost control and a commitment to efficient management of resources and value for moneyremains important. However, this alone will not address the College’s sustainability. In order to provide theappropriate support and facilities for our current students and to safeguard the College’s future we must also continueto undertake planned growth and invest in capital, including new technologies to achieve better productivity. Incomegeneration is as critical as cost control. Hence growth in student numbers, charging closer to economic rates foraccommodation and other services, development of our conference and other income-generating activities, ambitiousfundraising and sound investment management all have a crucial role to play in securing the College’s future.

However, though we may plan for growth, the College has limited control over some of the major factors that affectthese areas of income generation. As well as its obvious effect upon the investment portfolio, the UK and globaleconomic climate also has an impact upon other key areas such as student fees and numbers, conference income andfundraising. This is a time of considerable political uncertainty globally and specifically for Higher Education in the UKwith Brexit and the introduction of the new Office for Students. Changes to the fees and funding regime also affect thenumbers and types of students who come to Cambridge University and to t.ucy Cavendish College. In recent years, thebalance of students in the College has shifted so that we now have about 40% undergraduates and 60%postgraduates. Equally, the College now has a significant proportion of overseas students, approximately 67%, ofwhom 28% are from the EU. Any tightening of visa restrictions will have an impact on international students’ ability tocome to the UK. Given that over a quarter of our students are from the EU, we are particularly vulnerable to anyimpact of Brexit on the ongoing desire for EU students to come to the UK. There was no change in fee status for EUstudents for 2016/17 and 2017/18 starters but what will happen beyond this and any consequent impact on demandremains uncertain.

In terms of expenditure, there is continuing upward pressure as student expectations rise, requiring the College todeliver even more effectively in all areas: from teaching and pastoral support to accommodation, housekeeping andcatering and IT provision. Legal and compliance issues in a range of areas increasingly require the College to devotemore of its limited resources to ensuring that requirements are met. Equally, there is continuing pressure in a numberof areas for the College to pay its fair share of inter-college and collegiate University costs with previous subsidies forless well-endowed colleges being tapered and gradually removed. Finally, in order to continue to meet our aspirationof ensuring that talented women with academic merit can come to the College and complete their studies Cambridgeirrespective of means, there remains a great need for student bursaries and hardship funds. The support that we havereceived from donors and supporters for student bursaries has been so valuable and we, and our students, willcertainly continue to need such generosity.

Plans for the futureDuring 2016/17 under the leadership of the College’s 8°’ President, Jackie Ashley, the Governing Body began theprocess of updating the Strategic Plan to identify the best approaches to meeting the challenges of the next 3-5 yearsand setting the foundations for the longer term. The revised plan has yet to be formally approved but reaffirms theCollege’s purpose as a dynamic and inclusive community where talented women over 21 can achieve an excellentCambridge education or conduct high quality research in a modern and intellectually stimulating environment thatchampions women’s education and development. It also sets out the Governing Body’s vision and values and identifiesfour key strategic themes for the next phase: academic and recruitment; community; development and fundraising;and partnership generation.

The College takes this opportunity to thank its Auditors and other professional advisers for their consistent and expertsupport.

6%c/Ms Jackie Ashley Mrs Lesley ThompsonPresident / / BursarDate: t’ / /7 Date: Zc NIb-.r-ts_L-cF 2..DV

14 I For the Financial Year Ending 301h June 2017

Lucy Cavendish College Corporate Governance

1. The following statement is provided by the Trustees to enable readers of the financial statements to obtain abetter understanding of the arrangements in the College for the management of its resources and for audit.

2. The College is a registered charity, registration number 1137875, and subject to regulation by the CharityCommission for England and Wales. The members of the Governing Body are the charity trustees and areresponsible for ensuring compliance with charity law.

3. The President and Fellows in Classes A, B and C constitute the Governing Body of the College. The GoverningBody is constituted and regulated in accordance with the College statutes and is the body responsible for thestrategic direction of the College. Members of the Governing Body are also the Trustees of the charity and arelisted on page 2. Student representatives and Visiting Fellows are invited to Governing Body meetings forunreserved business and Fellows in Class D (research fellows) attend the unreserved and reserved meetings asobservers. There is usually one formal Governing Body meeting and one informal meeting per term, togetherwith the Audit meeting during the Michaelmas term at which the audited accounts are approved.

4. Ongoing administration and management of the finances and assets of the College is carried out by theCollege Council which is composed ex officio of the senior officers (see below) together with 5 elected GBmembers and two student representatives. CouncU meets fortnightly during term time and just before andafter term as necessary.

Membership of the Council during the Financial Year 2016-17:Jackie Ashley, President, ex officioDr Isobel Maddison, Vice President, ex officio, from 1 October 2016Dr Jackie Brearley, acting Vice President, ex officio, to 30 September 2016Mrs Lesley Thompson, Bursar, ex officioDr (Kathryn) Leigh Stoeber, Senior Tutor, ex officio, to 19 January 2017Dr Stephanie Ellington, acting Senior Tutor, in attendance from 17 February 2017 (non-voting)Mrs Christine Houghton to 30 September 2016Dr Emily Tomlinson to 30 September 2016Dr Teresa ParodiMs Alison Vinnicombe, Secretary to the CouncilDr Sarah Gull from 1 October 2016Ms Sarah Westwood from i october 2016Dr Henriette Hendriks from 1 January 2017

5. There are a small number of committees and working groups which report to GB and/or Council, including anAudit Committee.

6. It is the duty of the Audit Committee to keep under review the effectiveness of the College’s internal systemsof financial and other controls; to advise the Trustees on the appointment of external and internal auditors; toconsider reports submitted by the auditors, both external and internal, to monitor the implementation ofrecommendations made by the auditors; to make an annual report to the Trustees.

7. The principal officers of the college are:

President Jackie Ashley MAVice President Dr Isobel Maddison BA MA PhDSenior Tutor Dr (Kathryn) Leigh Stoeber BS MS PhD, Senior Tutor, ex officio, to 19 January 2017Senior Tutor Dr Stephanie Ellington, acting Senior Tutor, in attendance from

17 February 2017 (non-voting)Bursar Mrs Lesley Margaret Thompson MA MA ACA

Delegated authority is given to them during the Long Vacation.

15 I For the Financial Year Ending 30thJune 2017

Lucy Cavendish College Corporate Governance

8. There are Registers of Interests of Trustees, the Council and Audit Committee and of the senior administrativeofficers. Declaration5 of interest are made systematically at meetings.

9. The College’s Trustees during the year ended 30 June 2017 are set out on page 2.

10. Statement of Internal Controls

The Trustees are responsible for maintaining a sound system of internal control that supports the achievementof policy, aims and objectives while safeguarding the public and other funds and assets for which theGoverning Body is responsible, in accordance with College Statutes.

The system of internal control is designed to manage rather than eliminate the risk of failure to achievepolicies, aims and objectives; it therefore provides reasonable but not absolute assurance of effectiveness.

The systems of internal control are designed to identity the principal risks to the achievement of policies, aimsand objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectivelyand economically.

The Trustees are responsible for reviewing the effectiveness of the system of internal control.

The Trustees’ review of the effectiveness of the system of internal control is informed by the work of thevarious committees, the Bursar and other College officers who have responsibility for the development andmaintenance of the internal control framework, and by comments made by the external auditors in theirmanagement letter and other reports.

The Governing Body is responsible for ensuring that there is an effective system of internal control and thataccounting records are properly kept and money appropriately spent. The Governing Body has takenreasonable steps to ensure that there are appropriate financial and management controls in place tosafeguard the assets of the College and to prevent and detect fraud.

Any system of financial control, however, can only provide reasonable, not absolute, assurance againstmaterial misstatement or loss.

11. Financial management and control

The College operates a devolved budgeting system under which individual budget holders are responsible formanaging income and expenditure within their own areas of operation and for bringing forward budgetproposals through an annual budgeting process. Fellows, members of staff and students are encouraged toparticipate in the process through membership of relevant committees and working groups. The Budget isthen considered by Council prior to approval by the Governing Body.

For the Financial Year Ending 3O” June 2017

Lucy Cavendish College Responsibilities of the Trustees

The Trustees are responsible for preparing the Annual Report and financial statements in accordance with applicablelaw and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The College’s Statutes and the Statutes and Ordinances of the University of Cambridge require the Governing Body toprepare financial statements for each financial year which give a true and fair view of the state of affairs of the Collegeand of the surplus or deficit of the College for that period. In preparing these financial statements the Trustees arerequired to:

• select suitable accounting policies and then apply them consistently;• make judgments and estimates that are reasonable and prudent;• state whether applicable accounting standards have been followed, subject to any material departures

disclosed and explained in the financial statements; and• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the

College will continue in operation.

The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy at any time thefinancial position of the College and enable them to ensure that the financial statements comply with the Statutes ofthe University of Cambridge. They are also responsible for safeguarding the assets of the College and hence for takingreasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included onthe College’s website. Legislation in the United Kingdom governing the preparation and dissemination of financialstatements may differ from legislation in other jurisdictions.

17 J For the Financial Year Ending 30th June 2017

Lucy Cavendish College Independent Auditors’ Report to the Trustees of Lucy Cavendish College

OpinionWe have audited the financial 5tatements of Lucy Cavendish College (the ‘College’) for the year ended 30 June 2017which comprise the consolidated statement of comprehensive income and expenditure, the consolidated statement ofchanged in reserves, the consolidated balance sheet, the consolidated cash flow statement and notes to the financialstatements, including a summary of significant accounting policies. The financial reporting framework that has beenapplied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial ReportingStandard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom GenerallyAccepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the College’s affairs as at 30 June 2017 and of its incoming resourcesand application of resource5 for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;• have been prepared in accordance with the requirements of the Charities Act 2011 and the Statutes of the

University of Cambridge; and• the contribution due from the College to the University has been correctly computed as advised in the

provisional assessment by the University of Cambridge and in accordance with the provisions of Statute G,ll,of the University of Cambridge.

Basis for opinionWe 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 thefinancial statements section of our report. We are independent of the College in accordance with the ethicalrequirements 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 theaudit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concernWe have nothing to report in respect of the following matters in relation to which the ISA5 (UK) requireus to report to you where:

• the trustees’ use of the going concern basis of accounting in the preparation of the financialstatements is not appropriate; or

• the trustees have not disclosed in the financial statements any identified material uncertainties that may castsignificant doubt about the College’s ability to continue to adopt the going concern basis of accounting for aperiod of at least twelve months from the date when the financial statements are authorised for issue.

Other informationThe other information comprises the information included in the report of the Governing Body other than the financialstatements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion onthe financial statements does not cover the other information and, except to the extent otherwise explicitly stated inour 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, indoing so, consider whether the other information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such materialinconsistencies or apparent material misstatements, we are required to determine whether there is a materialmisstatement in the financial statements or a material misstatement of the other information. If, based on the workwe have performed, we conclude that there is a material misstatement of this other information, we are required toreport that fact.

We have nothing to report in this regard.


Lucy Cavendish College Independent Auditors’ Report to the Trustees of Lucy Cavendish College

Matters on which we are required to report by exceptionWe have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports)Regulations 2008 require us to report to you if, in our opinion:

• The information given in the financial statements is inconsistent in any material respect with the report of theGoverning Body; or

• sufficient accounting records have not been kept; or• the financial statements are not in agreement with the accounting records; or• we have not received all the information and explanations we require for our audit.

Responsibilities of trusteesAs explained more fully in the trustees’ responsibilities statement set out on page 18, the trustees are responsible forthe preparation of the financial statements and for being satisfied that they give a true and fair view, and for suchinternal control as the trustees determine is necessary to enable the preparation of financial statements that are freefrom material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the College’s ability to continue as agoing concern, disclosing, as applicable, matters related to going concern and using the going concern basis ofaccounting unless the trustees either intend to liquidate the College or to cease operations, or have no realisticalternative but to do so.

Auditor’s responsibilities for the audit of the financial statementsWe have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Actand relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance aboutwhether the financial statements as a whole are free from material misstatement, whether due to fraud or error, andto issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,they could reasonably be expected to influence the economic decisions of users taken on the basis of these financialstatements.

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

Use of our reportThis report is made solely to the College trustees, as a body, in accordance with College’s statutes, the Statutes of theUniversity of Cambridge and the Charities Act 2011. Our work has been undertaken so that we might state to theCollege trustees those matters we are required to state to them in an auditor’s report and for no other purpose. Tothe fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the College andthe College trustees as a body, for our audit work, for this report, or for the opinions we have formed.

PaPETERS ELWORTHV & MOOREChartered Accountants and Statutory AuditorsSalisbury House, Station Road, Cambridge CB1 2LA

Date:


Lucy Cavendish College Statement of Principal Accounting Policies

Basis of preparation

The financial statements have been prepared in accordance with the provisions of the Statutes of the College and ofthe University of Cambridge and applicable United Kingdom Accounting Standards. In addition, the financialstatements comply with the Statement of Recommended Practice: Accounting for Further and Higher Education (theSORP).

The income and expenditure account includes activity analysis in order to demonstrate that the College is satisfying itsobligations to the University of Cambridge with regard to the use of public funds. The analysis required by the SORP isset out in note 6.

Basis of accounting

The financial statements have been prepared under the historical cost convention, as modified by the revaluation ofinve5tment assets and certain land and buildings.

Basis of consolidation

The consolidated financial statements include the financial statements of The College and its subsidiary undertakingfor the year ended 30th June 2017. The results of the subsidiary undertaking acquired or disposed of during theperiod are included in the consolidated income and expenditure account from the date of acquisition or up to the dateof disposal. The activities of student societies have not been consolidated.

Recognition of income

Academic feesCollege fee income is recognised in the period for which it is received and includes all fees chargeable to students ortheir sponsors.

Grant incomeIncome from research grants, contracts and other services rendered is included to the extent of the completion of thecontract or service concerned.

Donations and endowmentsNon exchange transactions without performance related conditions are donations and endowments. Donations andendowments with donor imposed restrictions are recognised within the Consolidated Statement of ComprehensiveIncome and Expenditure when the College is entitled to the income. Income is retained within restricted reserves untilsuch time that it is utilised in line with such restrictions at which point the income is released to general reservesthrough a reserve transfer.

Donations and endowments with restrictions are classified as restricted reserves with additional disclosure providedwithin the notes to the accounts.

There are four main types of donations and endowments with restrictions:1. Restricted donations — the donor has specified that the donation must be used for a particular objective.2. Unrestricted permanent endowments — the donor has specified that the fund is to be permanently invested to

generate an income stream for the general benefit of the College.3. Restricted expendable endowments — the donor has specified a particular objective and the College can

convert the donated sum into income.4. Restricted permanent endowments — the donor has specified that the fund is to be permanently invested to

generate an income stream to be applied to a particular objective.


Lucy Cavendish College Statement of PrincipalAccounting Policies

Donations with no restrictions are recorded within the Consolidated Statement of Comprehensive Income andExpenditure when the College is entitled to the income.

lnve5tment income and change in value of investment assetsInvestment income and change in value of investment assets is recorded in income in the year in which it arises and aseither restricted or unrestricted income according to the terms or other restrictions applied to the individualendowment fund.

Total returnThe Governing Body agreed that the transfer made under Total Return would equate to 4 per cent. This is in line withThe College spending rule which permits the transfer of no more than 5 per cent of the closing balance of the fund.Each transfer is subject to the specific agreement of the Governing Body.

Other incomeIncome is received form a range of activities including residences, catering conferences and other services rendered.

Cambridge Bursary SchemePayment of the Cambridge Bursaries to eligible students is made directly by the Student Loans Company (SLC). TheCollege has shown the gross payment made to eligible students and a contribution from the University as Incomeunder “Academic Fees and Charges”.

The net payment of £73,977 is shown within the Consolidated Statement of Comprehensive Income and Expenditureas follows:Income (see Note 1) £200,114Expenditure £274,091

Tangible fixed assets

a. Land and buildings

Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Certain items offixed assets that had been revalued to fair value on or prior to the date of transition to SORP, are measured on thebasis of deemed cost, being the revalued amount at the date of that revaluation.

Where parts of a fixed asset have different useful lives, they are accounted for as separate items of fixed assets.

Costs incurred in relation to land and buildings after initial purchase or construction, and prior to valuation, arecapitalised to the extent that they increase the expected future benefits to the College.

Freehold buildings are depreciated on a componentisation basis. Freehold land is not depreciated.

Buildings under construction are valued at cost, based on the value of architects’ certificates and other direct costsincurred to 30th June 2017. They are not depreciated until they are brought into use.

The cost of additions to operational property shown in the balance sheet includes the cost of land.



b. Maintenance of premises

The cost of refurbishment is capitalised and depreciated over the expected useful economic life of the assetconcerned. The College also sets aside sums periodically to meet future maintenance costs.

C. Furniture, fittings and equipment

Furniture, fittings and equipment are capitalised and depreciated over their expected useful life as follows;

Furniture and fittings 5 yearsInformation Technology 3 yearsKitchen equipment 3 yearsLibrary books 40 yearsGeneral mechanical equipment 3 yearsAir conditioning units 10 years

d. Leased assets

Leases in which the College assumes substantially all the risks and rewards of ownership of the leased asset areclassified as finance leases. Leased assets acquitted by way of finance leases are stated at an amount equal to thelower of their fair value and the present value of the minimum lease payments at inception of the lease, lessaccumulated depreciation and less accumulated impairment losses. Lease payments are accounted for as describedbelow.

Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability.The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate ofinterest on the remaining balance of the liability.

Costs in respect of operating leases are charged on a straight lie basis over the lease term. Any lease premiums orincentives are spread over the minimum lease term.

e. Heritage AssetsThe College does not currently hold any heritage assets.

Investments

Fixed asset investment and endowment assets are included in the balance sheet at market value, except forinvestment in subsidiary undertakings which are stated in the College’s balance sheet at cost and eliminated onconsolidation. Investments that are not listed on a recognised stock exchange are carried at historical cost less anyprovision for impairment in their value. One of our student properties, 137 Chesterton Road, has been included underInvestments as it has been directly financed from our investment portfolio. A valuation was carried out by Bidwells,Property Consultant, on 27t1 June 2017.

Silver, works of art and other assets not related to education are valued at insurance value.

Provisions

Provisions are recognised when The College has a present legal or constructive obligation as a result of a past event, itis probable that a transfer of economic benefit will be required to settle the obligation and a reliable estimate can bemade of the amount of the obligation.

22 I For the Financial Year Ending June 2017


Contingent liabilities and assets

A contingent liability arises from a past event that gives the College a possible obligation whose existence will only beconfirmed by the occurrence or otherwise of uncertain future events, not wholly within the control of the College.Contingent liabilities also arise in circumstances where a provision would otherwise be made but either it is notprobable that an outflow of resources will be required or the amount of the obligation cannot be measured reliably.

A contingent asset arises where an event has taken place that gives the College a possible asset whose existence willonly be confirmed by the occurrence or otherwise of uncertain future events not wholly within the control of theCollege.

Contingent assets and liabilities are not recognised in the balance sheet but are disclosed in the notes.

Taxation

On 1 June 2010 The College ceased to be an exempt charity and became a registered charity, number 1137875, on7 September 2010.

The College is also a charity within the meaning of Section 506 (1) of the Taxes Act 1988. Accordingly, The College isexempt from taxation in respect of income or capital gains received within the categories covered by Section 505 ofthe Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income orgains are applied to exclusively charitable purposes

The College receives no similar exemption in respect of Value Added Tax.

Contribution under Statute 6,11

The College is liable to be assessed for Contribution under the provisions of Statute 6,11 of the University of Cambridge.Contribution is used to fund grants to colleges from the Colleges Fund. The College may from time to time be eligiblefor such grants. The liability for the year is as advised to the College by the University based on an assessable amountderived from the value of the College’s assets as at the end of the previous financial year.

Employment benefits

Short term employment benefits such as salaries and compensated absences are recognised as an expense in the yearin which the employees render service to the College. Any unused benefits are accrued and measured as theadditional amount the College expects to pay as a result of the unused entitlement.



ReservesReserves are allocated between restricted and unrestricted reserves. Endowment reserves include balances which, inrespect of endowment to the College, are held as permanent funds, which the College must hold to perpetuity.

Restricted reserves include balances in respect of which the donor has designated a specific purpose and therefore theCollege is restricted in the use of these funds.

Pension schemesThe institution participates in the Universities Superannuation Scheme. With effect from 1 October 2016, the schemechanged from a defined benefit only pension scheme to a hybrid pension scheme, providing defined benefits (for allmembers), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee —

administered fund. Because of the mutual nature of the scheme, the assets are not attributed to individualinstitutions and a scheme-wide contribution rate is set. The institution is therefore exposed to actuarial risksassociated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilitiesof the scheme on a consistent and reasonable basis. As required by Section 28 of FRS 102 “Employee benefits”, theinstitutions therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, theamount charged to the profit and loss account represents the contributions payable to the scheme. Since theinstitution has entered into an agreement (the Recovery Plan), that determines how each employer within the schemewill fund the overall deficit, the institution recognises a liability for the contributions payable that arise from theagreement (to the extent that they relate to the deficit) and therefore an expense is recognised.

The College participates in the Cambridge Colleges Federated Pension Scheme (CCFPS), a defined benefit schemewhich is externally funded and until 31 March 2016 was contracted out of the State Second Pension (S2P). As COPS isa federated scheme and the College is able to identify its share of the underlying assets and liabilities, the Collegevalues the fund as required by Section 28 Employee Benefits of FRS 102 ‘Retirement Benefits’. As a result, the amountcharged to the Statement of Comprehensive Income and Expenditure represents the amount calculated under FRS1O2guidelines.

The College operates a defined contribution pension scheme and the pension charge represents the amounts payableby the College to the fund in respect of the year.

NOW pensionThe College operates an insured money purchase pension scheme for its staff. The assets of the scheme are heldseparately from those of the College.

The College’s contributions to the scheme amounted to £3,721 (2016: £2,764), with contributions of £784 (2016£886), outstanding at the balance sheet date.

Critical accounting judgementsFRS 102 makes the distinction between a group pension plan and a multi-employer pension scheme. A group planconsists of a collection of entities under common control typically with a sponsoring employer. A multi-employerscheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such asthat provided by USS. The accounting for a multi-employer scheme where the employer has entered into anagreement with the scheme that determines how the employer will fund a deficit results in the recognition of aliability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) andthe resulting expense is recognised in profit or loss. The Governing Body is satisfied that the scheme provided by USSmeets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of thecontractual contributions under the funding plan in existence at the date of approving the financial statements.


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Lucy Cavendish College Consolidated and College Balance Sheet — As at 3O June 2017

Non-current Assets

Tangible Assets

Investments

Current Assets

Stock

Trade and other receivables

Cash and cash equivalents

Creditors: amounts falling due

within one year

Net current assetsf(liabilities)

Creditors: amounts falling due

after more than one year

Provisions

Pension provisions

Total net assets

Restricted reserves

Income and expenditure reserve -

endowment reserve


restricted reserve

Total restricted reserves

Unrestricted reserves


unrestricted

Total unrestricted reserves

Total reserves

10

11

12

13

The financial statements were approved by Governing Body on

2016 2016

Consolidated College

£000 £000

19 19

250 245

995 992

1,264 1,256

(873) (865)

391 391

(6,044) (6,044)

(408) (408)

41,180 41,180

8,718 8,718

1,383 1,383

10,101 10,101

31,079 31,079

31,079 31,079

41,180 41,180

and signed on its behalf by:

Ms Jackie AshleyPresident

‘9

Mrs Lesley ThompsonBursar

Note

89

2017

Consolidated

£000

36,738

12,500

49,240

2017

College

£000

36,738

12,500

49,240

37,210

10,031

47,241

37,210

10,031

47,241

14

15

16

17

22 22

450 427

573 568

1,045 1,017

(718) (690)

327 327

(6,044) (6,044)

(423) (423)

43,098 43,098

11,071 11,071

1,257 1,257

12,328 12,328

30,770 30,770

30,770 30,770

43,098 43,098


Lucy Cavendish College Consolidated Cash Flow Statement for the year ended 30 June 2017

Consolidated Cash Flow StatementFor the year ended 30 June 2017

2016 2015

Note £000 £000Net cash inflow from operating activities 19 1,009 991Cash flows from investing activities 20 (1,163) (564)Cash flows from financing activities 21 (268) (258)lncrease/(decrease) in cash and cash equivalents in theyear (422) 169

Cash and cash equivalents at the beginning of the year 995 826Cash and cash equivalents at the end of the year 12 573 995


Lucy Cavendish College Notes to the Accounts

rateFee income received at the Unregulated Undergraduate

Per capita fee 2017

£,000

£4,500 422 422

rate

Fee income received at the Graduate rate

Total

Cambridge bursary income

Total

2 Residences, catering and conferences income

Residential accommodation

Catering

Total

3 Endowment return and investment income

3a Analysis

Total return contribution (see note 3b)

Income from:Land and buildings

Quoted securities

Fixed interest from units and bonds

Total

3b Summary of total returnIncome from:Land and buildings

Quoted and other securities and cash

Total income

Gains/(losses) on endowment assets:Land and buildings

Quoted and other securities and cash

Total gains/(Iosses) on endowment assets

Investment management costs (see note 3c)

£6,615,E7,350, £7,500

£3,283

College members

Conferences

College member5

Conferences

188 196

540 500

1,150 1,118

200 76

1,350 1,194

2017 2016

£,000 £,000

1,295 1,229

240 238

143 143

346 321

2,024 1,931

2017 2016£,000 £,000

477 475

36 37

440 437

1 1

477 475

2017 2016£,000 £,000

36 37201 173

237 210

1,347 133

1,347 133

(44) (38)

Total return for the year

Total return transferred to income & expenditure reserve (see note 3a)

Unapplied total return for year included withinstatement of Comprehensive Income and Expenditure (see note 19)

1,542 305

477 475

1,065 (170)

Note

1 Academic fees & charges

Fee income received at the Regulated Undergraduate

2016

£,000



3c Investment management costs

Quoted securitie5

Total

4 Education Expenditure

Teaching

Tutorial

Admissions

Research

Scholarships & Award5

Other Educational Facilities

5 Residences, catering & conferences expenditure

College members

Conferences

College members

Conferences

2016

£,000

(38)

Expenditure includes fundraising costs of £199,320. This expenditure includes the costs of alumni relations.

Analysis of 2015/16 expenditure byGb activity

Staff

2017

£,000

(44)

(44) (38)

2017 2016£,000 £,000

855 794

233 201

260 251

123 94

447 232

58 52

1,976 1,624

2017 2016

£,000 £,000

1,591 1,504

295 291

175 175

425 392

2,486 2,362

Accommodation

Catering

Analysis of 2016/17 expenditure by

6a activity

Staffcosts Other Op

(note 7) Exps Depreciation 2017

£,000 £,000 £,000 £,000

Education 795 1,020 161 1,976

Residences, catering and conferences 990 983 513 2,486

Other 183 34 1 218

1,968 2,037 675 4,680

costs Other Op

(note 7) Exps Depreciation 2016

£,000 £,000 £,000 £,000

Education 710 758 159 1,627

Residences, catering and conferences 932 925 505 2,362

Other 170 28 1 200

1,811 1,111 666 4,189



Average staff numbers (full time equivalents)Academic

Non academic (full time equivalent)

Total

34

5

39 0

- 34 31

41 46 43

41 80 74

The Governing Body comprises 39 fellows, of which the 19 declared above are stipendiary.

No officer or employee of the College, including the President, received emoluments of over£100,000

Key Management Personnel

Key management personnel are those persons having authority and responsibility for planning,directing and controlling the activities of the College. This includes aggregated emoluments paidto key management personnel i.e. President and all stipendiary Fellows. Aggregated emolumentsconsists of salary and taxable benefits but excludes any employer’s pension contribution

2017 2016£,000 £,000

Key Management Personnel 610 548

2017 20166c Audit fees

Other operating expenses include:

Audit fees payable to the Colleges external auditors

7 Staff costs

Collegefellows

£,000Emoluments 562Social security costs 48Other pension costs 116

Total

£,000 £,000

17 17

OtherAcademic

£,000

NonAcademics

£,000

2017£,000

2016£,000

1,026 1,588 1,473

726

72 120

144

1,242

260

1,968

87

252

1,811



8 Fixed Assets - Consolidated and College

CollegeBuildings

£,000

COST/VALUATION

At lit July 2016 37,639

Additions -

Disposals at cost/valuation -

Revaluation during the year

_________________________________________________________________

Cost valuation at 30th June2017

DEPRECIATION

At 1st July 2016

Provided for the year

Eliminated on disposal

_________________________________________________________________

Depreciation at 30th June2017

Net book value

At 30th June 2017

The Insured Value of Freehold Land and Buildings as at 30th June 2017 was €25,755,271 (2016: £25,515,132)

Furniture Kitchen Library Mech

& Equip IT Equip Books Equip Total

£,000 £,000 £,000 £,000 £,000 £,000

415 600 64 656 632 40,006

50 97 - 14 50 211

(9) (9)

37,639 465 697 64 661 682 40,208

1,026 377 580 64 241 508 2,796

515 28 39 - 16 77 675- - -

- (1) - (1)

1,541 405 619 64 256 585 3,470

36,098 60 77 - 405 97 36,738

36,613 38 20 - 415 124 37,210At 30th June 2016

32 I For the Financiol Year Ending 3O’ June 2017


Property

Other investments

Quoted securities - equities

Quoted securities - europe/overseas

Quoted securities - fixed interest

Cash in hand and at investment

managers

Conference Control

Members of the CollegePrepayments and accruedincome

Other

2017

£,000

10,029

7

3,219

(1,548)

(283)

1,076

12,500

2017

£,000

2016

£,000

9,423

(2)

1,051

(929)

248

240

10,031

2016

£,000

9 Investments

Balance b/fwd 1st July

Appreciation on revaluation

Additions

Disposals

Decrease in cash held by fund managers

Appreciation on revaluation

Balance c/fwd June

Represented by:

650

540

4,200

4,580

1,970

560

12,500

650

Si?

3,815

3,100

1,105

844

10,031

Consolidated

2016

£,000

Consolidat

ed

2017

£,000

10 Stock

Stock

11 Trade and other receivables

College

2017

£,000

College

2016

£,000

22 22

22 22

Consolidated College

2017 2017

£,000 £,000

166 143

14 14

263 263

7 7

450 427

2017 2017

£,000 £,000

573 568

573 568

19 19

19 19

Consolida

ted College

2016 2016

£,000 £,000

84 79

11 11

146 146

9 9

250 245

2016 2016

£,000 £,000

995 991

995 991

12 Cash

Bank Deposits

Cash



13 Creditors: amounts falling duewithin one year

SuppliersUniversity FeesAccruals and deferred incomeMembers of the college

Conference depositsOther

14 Creditors: amounts falling dueafter more than one yearPrivate Placement FundingPrivate Placement Funding

During 2013-14, the College has borrowed from institutional investors, collectively with other Colleges,the College’s share being £6 million. The loans are unsecured and repayable during the period 2043-2053, and are at fixed interest rates of approximately 4.4%. The College has agreed a financialcovenant of the ratio of Borrowings to Net Assets and has been in compliance with the covenant at alltimes since incurring the debt

15 Pension provisions

Balance at beginning of yearMovement in year:Current service cost including lifeassurance

Consolidated

2017

408

College

2017

408

Consolidated

2016

420

College2016

420

Contributions

Other finance (income)/cost

Actuarial loss/(gain) recognised in Statement ofComprehensive Income and Expenditure

Balance at end of year

(180) (180) (165) (165)12 12 17 17

2017 2017 2016 2016

£,000 £,000 £,000 £,000

11 11 133 13384 84 61 61

278 249 176 167101 100 118 118184 185 162 163

60 61

718 690

2017 2017

£,000 £,0003,480 3,4802,564 2,564

6,044 6,044

223 223

873 865

2016 2016

£,000 £,0003,480 3,4802,564 2,564

6,044 6,044

183 183 137 137

423 423 408 408

Consolidated College Consolidated College

2017 2017 2016 2016

118 118 104 104

305 305 305 305

423 423 408 408

CCFPS

USS

Total

34 I For the Financial Year Ending 30thJune 2017

Lucy Covendish College Notes to the Accounts

16 Endowment funds

Restricted net assets relating to

Balance at beginning of year:

Capital

New endowments received

lncrease/(decrease) in marketvalue of investments


Represented by:

Capital 3,722 7,349 11,071 8,718

Analysis by type of purpose:

Fellowship funds

Scholarship funds

Prizes funds

Hardship funds

Travel grant funds

Other funds

General endowments

______________________________

Total

endowments are

Restricted

permanentendowments

£,000

2,825

as follows:

Unrestrictedpermanent

endowments

£,000

5,893

2017

£,000

8,718

553 735 1,288

344

3,722

2016

£,000

8,211

677

(170)

8,718

721

7,349

1,065

11,071

1,167 1,167 1,024

1,513 1,513 860

73

347

2

621

73 65

347 310

2 2

7,348

3,722 7,349

Analysis by asset:

Property

Investments

621

7,348

11,071

565

5,893

8,718

650

8,068

8,718

3,722

3,722

650

6,699

7,349

650

10,421

11,071



17 Restricted reservesReserves with restrictions are as follows:

Permanentunspent

and otherrestricted

incomeBalance at beginning ofyear:

Capital -

Accumulated income 999

New grants -

New donations 19

Investment incomeCapital grants utilisedExpenditure

_____________


Analysis of other restrictedfunds/donations by type of purpose

Fellowship fundsScholarship fundsPrizes fundsHardship fundsTravel grant fundsOther fundsGeneral

Total

Balance at end of year:Capital

Accumulated income


Other restrictedfunds/donations 2017

18 Memorandum Unapplied Total Return

Included within reserves, the following amounts represent theUnapplied Total Return of the College:

2017 2016

£,000 £,000

Unapplied Total Return at beginning of year 4,471 4,641

Unapplied Total Return for year (see note 3b) 1,065 (170)

Unapplied total return at year end 5,536 4,471

2016

260

951

Capitalgrants

unspent

10

1

(4)

7

369 379

5 1,004

100 120 310

156(4)

(398)

1,257

(198)

277

155

(200)

973

535

264

12125

37

147

(21)

(264)

1,383

621

42717 552

136 400

2 14 150 125 93

122 159 216

11- 7 7

973 7 277 1,257 1,383

- 7 271 272 380973 0 6 979 1,003

973 7 277 1,257 1,383

361 For the Financial Year Ending 3Qtfl June 2017


2017£,000

Surplus/(deficit)for the year 1,917

Adjustments for non-cash itemsDepreciationInvestment Income

Loss/(gain) on endowments, donations and investment propertyDisposal of fixed assets

Interest PayablePension deficit lncrease/(Decrease)(lncrease)/Decrease in Stocks

(Increase)/Decrease in Debtor5Increase/(Decrease) in Creditors

Adjustments for investing or financing activitiesInvestment income

Interest payableProfit on the sale of non-current assets

Net cash inflow from operating activities

20 Cash flows from investing activities

Proceeds from sales of non current fixed assetsNon current investment disposalInvestment income

Endowment funds investedWithdrawal of deposits

Payments made to acquire non-current assets

Total cash flows from investing activities

21 Cash flows from financing activities

Interest paid

Interest element of finance lease rental paymentNew secured loan

Repayments of amounts borrowedCapital element of finance lease rental payments

______

Total cash flows from financing activities

Reconciliation of consolidated surplus for the year to net cash inflowis from operating activities

2016f,000

420

665

(475)

675

(477)

(1,347) (133)

(9) (5)268 259

15(2)

(200)

(12)

(1)

(36)

(155) (68)

(1,233) 201

324 369

324 369

1,009 990

238 2141,190 578

211 197

1,163 564

268 258

268 258

37 I For the Financiol Year Ending 3O June 2017

Lucy Cavendish Colleqe Notes to the Accounts

Land and buildings:Expiring within one yearExpiring between two and five yearsExpiring in over five years

Expiring within one year

Expiring between two and five yearsExpiring in over five years

22 Iease obligations

At 30th June, the College had annual commitments under non-cancellableoperating leases as follows:

2017 2016

Other

261

44263

42

265 305



24 Pension Schemes

FRS 102 Section 28 Post Employment Benefits

Critical accounting judgementsFRS 102 makes the distinction between a group plan and a multi-employer 5cheme. A group plan consists of a collectionof entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme forentities not under common control and represents (typically) an industry-wide scheme such as UniversitiesSuperannuation Scheme. The accounting for a multi-employer scheme where the employer has entered into anagreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liabilityfor the contributions payable that arise from the agreement (to the extent that they relates to the deficit) and theresulting expense in the profit and loss in accordance with section 28 of FRS 102. The directors are satisfied that thescheme provided by the Universities Superannuation Scheme meets the definition of a multi-employer scheme and hastherefore recognised the discounted fair value of the contractual contributions under the funding plan in existence atthe date of approving the financial statements.

Pension CostsThe total cost charged to the profit and loss account is £174k (2016: £158k) as show in Note 15.

The latest available full actuarial valuation of the scheme was at 31 march 2014 (the valuation date), which was carriedout using the projected unit method. The valuation as at 31 March 2017 is underway.

Since the institution cannot identify its share of scheme assets and liabilities, the following disclosures reflect thoserelevant for the scheme as a whole.

The 2014 valuation was the third valuation for USS under the scheme-specific funding regime introduced by thePensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient andappropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was£41.6 billion and the value of the scheme’s technical provisions was £46.9 billion indicating a shortfall of £5.3 billion.The assets therefore were sufficient to cover 89% of the benefits which had accrued to members after allowing forexpected future increases in earnings.

Defined benefit liability numbers for the scheme have been produced using the following assumptions:2017 2016

Discount rate 2.57% 3.6%Pensionable salary growth n/a n/aPensions increases (CPI) 2.41% 2.2%

The main demographic assumption used relates to the mortality assumptions. Mortality in retirement is assumed to bein line with the Continuous Mortality Investigation’s (CMI) S1NA tables as follows:

Male members’ mortality 98% of S1NA (“light) Y0B tables — No age ratingFemale members’ mortality 99% of S1NA (“light”) YoB tables — rated down 1 year



Use of these mortality tables reasonably reflects the actual USS experience. To allow for further improvements inmortality rates the CMI 2014 projections with a 1.5% pa long term rate were also adopted. The current life expectancieson retirement at age 65 are:

2017 2016Males currently aged 65 (years) 24.4 24.3Females currently aged 65 (years) 26.6 26.5Males currently aged 45 (years) 26.5 26.4Females currently aged 45 (years) 29.0 28.8

2017 2016Scheme assets £60.Obn £49.SbnTotal scheme liabilities £77.Sbn f58.3bnFRS 102 total scheme deficit £17.Sbn £8.5bnFRS 102 total funding level 77% 85%



Cambridge Colleges Federated Pension Scheme

The College operates a defined benefit pension plan for the College’s employees of the Cambridge Colleges’ FederatedPension Scheme.

The liabilities of the plan have been calculated for the purposes of FRS1O2 using a valuation system designed for theManagement Committee, acting as Trustee of the Cambridge Colleges’ Federated Pension Scheme, at 31 March 2017but allowing for the different assumptions required under FRS1O2 and taking fully into consideration changes in the planbenefit structure and membership since that date.

The principal actuarial assumptions at the balance sheet date (expressed as weighted averages) were as follows:

2017 2016%p.a. %p.a.

Discount rate 2.6 2.8RPI assumption 3.35 2.9CPI assumption 2.35 1.9Pension increases in payment (RPI Max 5% p.a.) 3.25 2.7

The underlying mortality assumption is based upon the standard table known as S2PA on a year of birth usage withCMI 2016 future improvement factors and a long-term rate of future improvement of 1.25% p.a. (2016: same basetable with CMI_2015 future improvement factors and a long-term future improvement rate of 1.0% p.a.). This results inthe following life expectancies;

• Male age 65 now has a fife expectancy of 22.1 years (previously 21.9 years)• Female age 65 now has a life expectancy of 23.9 years (previously 23.9 years)• Male age 45 now and retiring in 20 years has a life expectancy of 23.5 years (previously 23.2 years)• Female age 45 now and retiring in 20 years has a life expectancy of 25.4 years (previously 25.4 years)

The amounts recognised in the Balance Sheet as at 30 June 2017 (with comparative figures as at 30 June 2016) are asfollows:

2017 2016£ £

Present value of plan liabilities (418,606) (377,051)Market value of plan assets 300,382 273,540Net defined benefit asset/(liability) (118,224) (103,511)

The amounts to be recognised in Profit and Loss for the year ending 30 June 2017 (with comparative figures for the yearending 30 June 2016) are as follows.

2017 2016£ £

Current service cost - -

Administration Expenses 3,914 4,283Interest on net defined benefit (asset)/liability 2,899 4,449(Gain)/loss on plan changes - -

Curtailment (gain)/loss - -

Total 6,813 8,732

I For the Financial Year Ending 30 June 2017


Changes in the present value of the plan liabilities for the year ending 30 June 2017 (withyear ending 30 June 2016) are as follows:

comparative figures for the

2017 2016£ £

Present value of plan liabilities at beginning of period 377,051 361,930Current service cost (including Employee contributions) - -

Employee contributions - -

Benefits paid (9,556) (12,671)Interest on plan liabilities 10,425 13,159Actuarial (gains)/losses 40,686 14,633(Gain)/loss on plan changes - -

Curtailment (gain)/loss - -

Present value of plan liabilities at end of period 418,606 377,051

Changes in the fair value of the plan assets for the year ending 30 June 2017 (withending 30 June 2016) are as follows:

comparative figures for the year

Market value of plan assets at beginning of periodContributions paid by the CollegeEmployee contributionsBenefits paidAdministration ExpensesInterest on plan assetsReturn on assets, less interest included in Profit & LossMarket value of plan assets at end of period

273,5406,859

(9,556)(4,338)

7,52626,351

300,382

• Actual return on plan assets 33,877 41,939

The major categories of plan assets as a percentage of total plan assets for the year endingcomparative figures for the year ending 30 June 2016) are as follows:

30 June 2017 (with

2017 2016Equities 68% 59%Bonds&Cash 26% 35%Property 6% 6%Total 100% 100%

The plan has no investments in property occupied by, assets used by or financial instruments issued by the College.

Analysis of the re-measurement of the net defined benefit liability recognised in Other Comprehensive Income (OCI) forthe year ending 30 June 2017 (with comparative figures for the year ending 30 June 2016) are as follows:

2017 2016£ £

241,6966,859

(12,671)(4,283)

8,71033,229

273,540



2017 2016£ £

Return on assets, less interest included in Profit & Loss 26,351 33,229Expected less actual plan expenses (424) -

Experience gains and losses arising on plan liabilitie5 65 12,652Changes in assumptions underlyingthe present value of plan liabilities (40,751) (27,285)Actuarial gain/(loss) recognised in OCI (14,759) 18,596

Movement in net defined benefit asset/(liability) during the year ending 30 June 2017 (with comparative figures for theyear ending 30 June 2016) are as follows:

2017 2016

£ £Net defined benefit asset/(liability) at beginning of year (103,511) (120,234)Recognised in Profit and Loss (6,813) (8,732)Contributions paid by the college 6,859 6,859Re-measurement of net defined benefit liability recognized inOCI (14,759) 18,596Surplus/(deficit) in plan at the end of the year (118,224) (103,511)

Funding Policy

Actuarial valuations are carried out every three years on behalf of the Management Committee, acting as the Trustee ofthe Scheme, by a qualified independent actuary. The actuarial assumptions underlying the actuarial valuation aredifferent to those adopted under FRS1O2.

The last such valuation was as at 31 March 2014. This showed that the plan’s assets were insufficient to cover theliabilities on the funding basis. A Recovery Plan has been agreed with the College, which commits the College to payingcontributions to fund the shortfall.

These deficit reduction contributions are incorporated into the plan’s Schedule of Contributions dated 3 June 2015 andare as follows:

• Annual contributions of not less than £2,945 p.a. payable for the period from 1 July 2015 to 2 December 2033.

These payments are subject to review following the next funding valuation, due as at 31 March 2017.



25 Principal Subsidiary Undertakings

Country ofIncorporation Proportionand Class of of sharesOperation Cost shares held

£Lucy Cavendish TradingLimited England 2 Ordinary 100%

The principal activity of the above company is detailed in the directors’ reports of the individualcompany’s financial statements and are included in the consolidated financial statements;

Lucy Cavendish Trading Limited supplies varied conference services.

26 Related Party Transactions

Owing to the nature of The College’s operations and the composition of its Governing Body it is possible thattransactions will take place with organisations in which a member of the Governing Body may have an interest. Alltransactions involving organisations in which a member of the Governing Body may have an interest are conducted atarm’s length and in accordance with the College’s normal procedures.


1

Documents

Annual Report and Accounts “t2’ University of Cambridge