University of Cambridge Annual Report and Accounts Y’Lucy

Lucy Cavendish CollegeY’ University of Cambridge

Annual Report and Accounts

For the Financial Year Ending30th June 2015

Lucy Cavendish College Contents

Description Pages

Members of the Governing Body 2

Principal Advisers 4

Report of the Governing Body 5

Corporate Governance and Trustee5’ Responsibility 17

Report of the Auditors 20

Statement of Principal Accounting Policies 22

Consolidated Income and Expenditure Account 26

Consolidated Statement of Total Recognised Gains and Losses 27

Consolidated Balance Sheet 28

College Balance Sheet 29

Consolidated Cash Flow Statement 30

Notes to the Accounts 31

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Lucy Cavendish College Members of Governing Body during the year to 30th June 2015

President: Professor Janet Margaret Todd MA PhD OBE, Research Mentor in the ArtsAbbott Ruth BA MPhil PhD, Lecturer, Faculty of English, University of Cambridge, from i october 2014Abulafia Anna Brechta Sapir MA PhD FRHistS UttD, College Lecturer and Director of Studies, History and Secretary to

the Studentship and Bursary Committee, Lucy Cavendish College, to 31 March 2015Allen Jodie PhD, Post-doctoral Research Associate, Institute of Public Health, University of Cambridge; Newton

Trust Time-Limited Teaching Fellow, Lucy Cavendish College, to 30 September 2014Bahn Professor Sabine MD PhD MRCPsych, Professor, Bahn Laboratory, University of CambridgeBrearley Jacqueline Chryscillian MA Vet MB PhD DVA Dip ECVAA MRCA MRCVS, Senior Lecturer, University of

Cambridge; Director of Studies, Clinical Veterinary Medicine, and Tutor, Lucy Cavendish CollegeBrindley Sue MA MA MA, Senior Lecturer, Faculty of Education, University of Cambridge; Director of Studies,

Education, Lucy Cavendish CollegeCameron Professor Ruth MA PhD MlnstP CPhyS, Professor, Materials Science and Metallurgy, University of

Cambridge; Research Mentor in the Sciences and Director of Studies, Natural Sciences (Physical), LucyCavendish College

Cindrova-Davies Tereza PhD, Post-doctoral Research Associate, Department of Physiology, Development and Neuroscience,University of Cambridge and Time-Limited Newton Trust Teaching Fellow, Lucy Cavendish College to 30September 2014

Covshoff Sarah MA PhD, Research Associate, Department of Plant Sciences, University of CambridgeDavies Jane BSc MSc PhD MBA DBA, University Lecturer, Operational Management, University of CambridgeDenton Alice BSc PhD, Research Associate, Department of Medicine, University of Cambridge, from 5 February 2015Elllngton Stephanie Katharine Lindsay BSc MA PhD, Senior Tutor, College Lecturer, Physiology, Director of Studies,

Medical Sciences (+CGMC 1&2) and Director of Studies, Natural Sciences (Biological), Lucy Cavendish Collegeto 30 September 2014

Fenton-Glynn Claire LLB BCL PhD, College Teaching Officer and Director of Studies in Law and for the LLM, Lucy CavendishCollege to 30 September 2014

Gall Astrid, PhD, Staff Scientist, Wellcome Trust Sanger Research Institute; Time-Limited Newton Trust TeachingFellow (to 30 September 2014) and Tutor, Lucy Cavendish College

Gibson Jenny PhD, Lecturer in Psychology and Education, Faculty of Education, University of Cambridge, from 13November 2014

Greatorex Jane Suzette BTec FMLS PhD, Senior Research Scientist, Health Protection Agency; Director of Studies, Preclinical Veterinary Medicine and Tutor, Lucy Cavendish College

Gull Sarah Elizabeth MBBS FRCS(ED) FRCOG, Joint Course Supervisor, Graduate Medical Course, Director ofStudies for CGMC yrs 3&4, and Curator, Lucy Cavendish College; Consultant Gynacologist, West Suffolk

Hakenbeck Susanne BA MPhil PhD FSA, Lecturer, Department of Archaeology and Anthropology, University ofCambridge; Director of Studies for HSPS, Lucy Cavendish College

Hendriks Henriette PhD, Head of Department of Theoretical and Applied Linguistics, University of Cambridge andPraelector, Lucy Cavendish College

Houghton Margaret Christine BA MA, Domestic Bursar and Wine Steward, Lucy Cavendish CollegeHowe Professor Christine Joyce BA PhD AcSS, Professor, Education, University of Cambridge; Research Mentor in

Social Sciences, Lucy Cavendish CollegeJackson Susan MA PhD CEng, Research Development Co-Ordinator, Department of Engineering, University of

Cambridge; Tutor, Lucy Cavendish CollegeKoenig Jennifer BSc PhD, Dean of College and Steward; Director of Studies, Medical Sciences (inc CGCM 1st & 2nd

years) from 1 October 2014, Lucy Cavendish CollegeMaddison Isobel Judith BA MA PhD, Vice-President and Lecturer and Director of Studies, English, and Secretary to

Council, Lucy Cavendish CollegeNugent Eileen Mary BSc MPhil DPhil, Early Career Lecturer, Biological and Soft Systems, Cavendish Laboratory,

University of Cambridge, from i october 2014Parodi Teresa, Lecturer, Department of Theoretical and Applied Linguistics, University of Cambridge, from 24 June

2015Rath Spivack Orsola MA PhD, Graduate Admissions Tutor and Director of Studies in Mathematics, Lucy Cavendish CollegeSier Caroline, BA MlnstF(Cert) Development Director, Lucy Cavendish College, to 30 April 2015Stoeber (Kathryn) Leigh 85 MS PhD, Senior Tutor, Lucy Cavendish College, from 18 August 2014Taylor Helen Louise MA MBBS MRCP FRCR, Joint Course Supervisor, Cambridge Graduate Medical Course,

Consultant Radiologist, West Suffolk 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

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Lucy Cavendish College Members of Governing Body during the year to 30th June 2015

Vinnicombe Alison Annette BA MA Dip RSA, Tutor, Registrar and Secretary to Governing Body, Lucy Cavendish CollegeWalter Dr Fiona MA MB BChir MSc MD DCH FRCGP, Clinical Lecturer in General Practice, University of CambridgeWilson Dr Shona BSc PhD, Research Associate, Department of Pathology and Newton Trust Time Limited Teaching

Fellow, Lucy Cavendish CollegeWulund Dr Lisa BS PhD, Research Associate, Wellcome Trust-MRC Institute of Metabolic Science ,Newton Trust Time-

limited Teaching Fellow, Lucy Cavendish College, from 1 October 2014Yotova Rumiana Vladimirova LLM PhD, College Teaching Officer, Law, Director of Studies, Law, LLM and MCL and

Tutor, Lucy Cavendish College from 1 October 2014

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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 Professorianet Margaret Todd MA PhDVice-President Dr Isobel Maddison BA MA PhDSenior Tutor Dr Stephanie Katharine Lindsay Ellington BSc MA PhD until 31/08/14

Dr Leigh Stoeber from 18/08/14Bursar Mrs Lesley Margaret Thompson MA ACA

Principal Advisers:

Actuaries: Property Valuers & Consultants:Cartwright Group BidwellsMill Pool House StonecrossMill Lane, Godalming Trumpington High StreetSurrey CambridgeGU7 1EV CB22 95U

Auditors: Securities Managers:Peters Elworthy & Moore UBS Wealth Management (UK) LtdSalisbury House, Station Road 1 Curzon StreetCambridge LondonCB1 2LA W1J SUB

Smith & Williamson25 MoorgateLondonEC2R GAY

Bankers: Solicitors:Barclays Bank Taylor Vinters9-11 St Andrews Street Merlin Place, Milton RoadCambridge CambridgeCB23AA CB4ODP

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Lucy Cavendish College Report of the Governing Body

Introduction

Lucy Cavendish College was founded in 1965 as a Collegiate Society. Initially a graduate Foundation, it admittedits first undergraduates in 1972. It became an Approved Foundation of the University of Cambridge in 1984 andthen in 1997 it was incorporated by Royal Charter and achieved full college status as a College for women of 21

and over. The College is an autonomous, self-governing community of scholars and one of the 31 colleges withinthe University of Cambridge. The College is a registered charity (number 1137875) and its registered office is LucyCavendish College, Lady Margaret Road, Cambridge CB3 oBU.

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

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

Structure, Governance and ManagementThe President and Fellows make up the Governing Body of the College. The Governing Body is constituted andregulated in accordance with the College statutes and is the body responsible for the strategic direction of theCollege. Members of the Governing Body are also the Trustees of the charity and are listed on page 2. Studentand staff representatives are invited to Governing Body meetings for unreserved business. There is generally oneformal Governing Body meeting and one informal meeting per term, together with the Audit meeting during theMichaelmas term at which the audited accounts are approved.

Ongoing administration and management of the finances and assets of the College is carried out by the CollegeCouncil which is composed ex officio of the senior officers (see below) together with 5 elected GB members, 2

student and a staff representatives. Council meets fortnightly during term time and just before and after term asnecessary.

Declarations of interest are made systematically at every meeting of GB and Council.

The senior officers of the College are the President (Head of House), Vice President, Senior Tutor and Bursar aslisted on page 4 and delegated authority is given to them during the Long Vacation.

There are a small number of formal committees and informal working groups which report to GB and/or Council.

Lucy Cavendish Trading Ltd is the company through which all relevant conference related activity is handled fortax purposes. Throughout the year to 30 June 2015 the Directors were: Ms M C Houghton, Professor J Todd andMrs L M Thompson.

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 providedthat no member of the College or any candidate for membership thereof shall be subject to any test of areligious, racial, political or social character.

For the Financial Year Ending 30h June 2015


Lucy Cavendish College admits women who are aged over 21 as undergraduate and postgraduate studentsmatriculated within the University of Cambridge. It provides with the University an education of the highestquality through small group teaching, academic supervision, library, computing and cultural facilities, meals andliving accommodation and some support for students in personal or financial need.

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

For the period to 2015 the College has adopted the following Aims:

i. To stimulate an intellectual environment that enables students and Fellows to maximise their academicpotential

2. To make Lucy Cavendish the College of choice for women aged 21 and over within the University ofCambridge

3. To engender a collegial community which offers support for women to develop4. To enhance the College’s academic reputation.

To make a greater impact within the University and also nationally and internationally6. To secure the College’s financial future

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 CharityCommission.

In summary, the College provides, in conjunction with the University of Cambridge, an education for some 330

mature undergraduate and graduate female students which is recognised internationally as being of the higheststandard. This education develops students academically and promotes their community and interpersonal skills,and so enables them to play enhanced and effective roles in society. This world-class education is provided towomen aged over 21 who have the highest academic potential whatever their means or religious, racial, politicalor social background.

In particularthe College provides:

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

• Socia4 cultural, musical, meditational and recreational and sporting facilities to enable each of itsstudents to realise as much as possible of their academic and personal potential whilst studying at theCollege.

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

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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 undertakethe full research, 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 thepublication 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 aredirectly engaged in education, learning or research. The President and Fellows of the College receive a number ofbenefits as beneficiaries comprising small research, book or travel grants etc. These benefits are provided with

the intention of furthering the College’s aims, primarily that of advancing research. The amounts of the benefitsprovided are objectively 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 Cambridge

University 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’s

participation from time to time in public schemes such as Open Cambridge and the National Open Gardensscheme.

College FundingThe sources of income of the College are:

2014/15 2013/14

Students: college fees £1,004,000 27% £995,000 25%

accommodation & catering £1,130,000 30% £988,000 25%

Cambridge Bursaries £61,000 a% £73,000 2%

Conference accommodation & catering £499,000 13% £458,000 12%

Endowment and investment return £446,000 12% £426,000 n%Donations* £172,000 5% £119,000 3%

Other income £54,000 2% £32,000 i%

Gain on sale of property £300,000 8% £839,000 21%

Total £3,666,000 100% £3,930,000 ioo%

*Some donations are treated as capital sums so do not feature in this income summary. Total donations and

benefactions for 2014/15 were £458,000 (2013/14 £301,000). Please see Donations & Benefactions section.

Cambridge colleges differ significantly in the size of their endowment and an arrangement exists for the better

endowed colleges to support those less well-endowed colleges through the Colleges Fund. Lucy Cavendish

College is regularly a beneficiary of this scheme and received £538,000) in this year (E462,000 in 2013/14).

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Achievements and performance

Academic and College Community

The College continues to grow in size, accepting well qualified students of n and over from all walks of life andfrom all over the world. The very diverse nature of our students, whilst instilling a unique vibrancy to the College,also means that some students require rather more help than perhaps is average, especially as they first settle

down in Cambridge. Tutors, Directors of Studies and supervisors appreciate this and work very hard to ensurethat graduate and undergraduate students are well supported when they first arrive and for the duration of theircourses. In view of the diversity of the backgrounds of the incoming undergraduates it is gratifying to see thatover 64% of our undergraduates gained i class or upper second class honours in their tripos examinations lastyear, nearly the highest percentage achieved compared with results over the past ten years. As a sign of further

excellence to come, we saw a very strong academic performance by our first-year undergraduate cohort and apleasing number of passes with distinction amongst our medics and vets. The strong academic performance inone of our larger subjects (Human, Social and Political Science) deserves a special mention and, of particular note,was the Part lIB Polity prize given to Wan Fong Woo, awarded by the Faculty for the best performance inSociology. Also of note was the ‘high commendation’ received by Kate Stephens, a PhD History student at the2i5 Biennial Pacific History Association Conference in Taiwan for her essay on Law in the New Hebrides. Kate wasalso runner up forthe Niel Gunson prize for the same essay.

The College continues with a range of measures to support the academic development of both graduates andundergraduates including study skills workshops, provision of a specialist advisor in writing skills and setting ofmock examinations prior to students taking their first set of University examinations. We are now successfullyimplementing both the Academic progress and Fitness to Study policies (with the aim of identifying students whomight not do as well as we or they would hope and instigating extra academic or pastoral support for them at theearliest possible opportunity).

Whilst maintaining high academic standards our students also participate in a wide range of extra-curricular

activities. We had students with blues (or half-blues) in sports such as athletics, lacrosse, volleyball andkickboxing.The Boat Club continued to impress with good performances in the Lent and May Bumps. In the Maybumps the Wa and W2 crews each got at least three bumps and moved up three and two place5 within their

divisions, respectively. They nearly held onto the Pegasus Cup but it slipped from their grasp on the last day withChurchill overtaking them, leaving the boat club in second place which is still a fantastic result for a fairly small

boat club.

With respect to accommodation, this year also saw the opening of our purpose-built student centre at Histon

Road. The feedback from our first group of students to reside there has been excellent and, as hoped, there is areal sub-community of the College there.

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

• Dr Ruth Abbot’s teaching was recognised, through a special mention in the Supervisor Category of theStudent-led CUSU Teachers’ Awards.

• Dr Sabine Bahn was listed amongst the top 50 women ‘Movers and Shakers in BioBusiness’ in theUK in 2014. The list identifies 50 inspiring women who challenge the status quo and bring betterhealth to people around the world. She was also one of 20 UK based entrepreneurs to attend aSwiss Business HUB UK event at the Swiss Embassy on business, funding and R&D opportunitieswithin the Swiss Med-Tech clusters.

• Dr Jane Davies received the Cambridge Judge Business School Faculty Teaching Award for herteaching on the Undergraduate Management Studies Tripos and the MBA Programme. FromSeptember 2015, Dr Davies will begin a new role as Director of the MBA Programme at theCambridge Judge Business School.

• Dr Jenny Koenig received the CUSU Student Led Teaching Award for Outstanding Supervisor.Nominated by students, this honour really reflects the enormous impact that Jenny’s approach toherteaching has on students.

• Dr Helen Taylor successfully completed a Post Graduate Certificate in Medical Education thisacademic year. Her studies will further enhance her understanding of educational theory, which willbe applied in her teaching of medical students. She has also been appointed as a University ClinicalAnatomist and now teaches the first and second year medical students the structure and functionof the human body.

• Dr Shona Wilson has been awarded a three-year MRC Project Grant for: investigating naturallyoccurring regulation of human IgE-mediated hypersensitivity using hookworm-schistosome coinfection, with Prof. David Dunne.

• Dr Fiona Walter’s research into cancer in primary care has been recognised through a promotion tothe new role of Clinical Principal Research Associate in Primary Care Cancer Research. JonathanMant, Professor of Primary Care Research said: “This is a prestigious appointment (rarely made) thatis the equivalent in the University to a Readership, and reflects recognition by the Clinical Schoo4 andindeed the wider University, of the importance and value of Fiona’s work that has establishedCambridge as a key player in primary care cancer research.”

• Alice Tong Sze Junior Research Fellow, Dr Helen Roche, had two articles accepted in high-profilejournals and was commissioned to write a review essay on German philhellenism for The HistoricalJournal, as well as taking on the editorship of Brill’s Companion to the Classics, Fascism and NaziIdeology.

Amongst a range of other exciting events and initiatives an important highlight in the year is the Lucy CavendishCollege Fiction Prize. This is awarded annually to an unpublished female novelist over the age of 21 and in this its5th year was won by Emily Midorikawa, with her novel: A Tiny Speck of Black and then Nothing. The Prizecontinues to be very successful in launching literary careers with several writers from previous shortlists havinghad their work published.

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Widening accessLucy Cavendish College is the only women’s college in Europe for postgraduates and undergraduates agedtwenty-one and over. Its intake is one of the most diverse in Cambridge; we currently have students from morethan sixty countries. Many of our first-time undergraduates have not taken a traditional route into university;around 30% hold Access Diplomas or comparable qualifications, rather than A-levels, and a number of those whodo hold A-levels, are self-taught. Other undergraduates come to Lucy Cavendish as career changers or affiliatedstudents, subsequent to completion of a degree elsewhere; we attract particularly high levels of applicants inHuman, Social and Political Sciences, Law, and Medicine. As part of its agreement with the governmental Officeof Fair Access, the University of Cambridge has committed to admitting 62-64% of its British first-timeundergraduates from the state education sector, and 10-13% from neighbourhoods where there is a low rate ofprogression to university. Lucy Cavendish regularly exceeds both these targets, and a significant proportion ofour undergraduates are the first in theirfamilies to undertake higher level study. About one third of thosequalifying for financial assistance receive the full maintenance grant. The College has a reputation for the supportit gives to its students and its concern for welfare as well as academic achievement.

Student SupportIn order to assist undergraduates entitled to student support, the College provides, through a scheme operated incommon with the University, other Colleges and the Isaac Newton Trust, bursary support (the CambridgeBursary) for those with limited financial means. That scheme is approved by the Office of Fair Access (OFFA) andprovides benefits at a substantially higher level than the minimum OFFA requirement. In addition, the Collegeactively seeks support for and gives other awards and bursaries to its undergraduate and graduate students(178,000 in 2014115).

Operating and Financial ReviewThe College Income and Expenditure account shows a surplus of £11,000 (2014 surplus £410,000).

However, in both the year under review and the previous year, significant gains on sales of property have takenplace, which have affected the overall income. Although on the face of it total income has decreased by 7%, ifboth gains are excluded the overall increase in income from 2014-15 to 2015-16 would be g%.

This underlying increase is primarily accounted for by increases in income from Residences, catering andconferences (13%) and Donations (45%).

Income

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

Academic Fees and Charges (0.2% decrease)

The College charges;

• fees at externally regulated rates to undergraduates entitled to student support with thoseundergraduate fees being paid by grant funding through arrangements approved by the Government

• fees determined by the College annually to Overseas undergraduates and any Home/EU undergraduatesnot entitled to student support.

The College receives a proportion of the fees charged by the University to graduate students based on a percapita allocation.

Whilst in practice student numbers in College have continued to increase, total fee income received depends onthe type of student. In 2014/15 there were 121 undergraduates and 208 fee-paying graduates, of whom 29 were

part time. A further 43 graduate students were exempt from paying fees.


r


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

received fell by a6% as it relates to the number of students in any yearwho qualify for the scheme.

Residences, catering and conference income (13% 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 14%.

Ongoing efficiencies and increased rent charges, progressively bringing these closerto actual costs, are a key part

of seeking 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 offer affordable rents for students whilst at the same time ensuring that the College has the necessary

funds to maintain its student accommodation, undertaking necessary refurbishment and maintenance. Increased

rent was received as the College was able to offer accommodation to its students in the new student centre at aoo

Histon Road.

Income received from conference accommodation and catering charges also increased by 9% in total.

As ever, the income derived from conferences is critical forthe College’s finances and significant efforts are madeto fill rooms and provide a good service to guests so that the College’s ongoing costs are covered, particularlyduring vacation periods. Whilst income from conference accommodation held level, income from conferencecatering was up by i6%.

Endowment and Investment income (5% increase)

Both dividend receipts and capital growth increased this year as overall stock market conditions were favourable.

The Governing Body Fellows are the Trustees of the College, governed under the Trustee Act 2000. Theirinvestment powers are defined in Statute 44 of the College’s Statutes and they have overall responsibility overthe investment of the College’s endowments. Governing Body has responsibility for approving investmentobjectives, agreeing risk and return targets, performance benchmarks and the investment manager structure.The Governing Body delegates the detailed aspects of the oversight of the investment arrangements to theInvestment Committee who in turn appoint investment managers to be responsible for day to day managementof the investments in accordance with agreed guidelines. Overall, the financial objective of the Fund is tomaintain at least the real value of the assets whilst generating a stable and sustainable return to help fund thecollege’s operations each year. To this end, a diversified portfolio with a strategic asset allocation including mostor all of UK and Overseas Equities, Bonds, Cash, Alternative Investments and Commercial Property is maintainedwith due regard for socially responsible investments consistent with the College’s charitable status and its ethos.

Within the College’s Total Return Spending Rule the aim is to derive sufficient and regular income substantially tooffset the shortfall in public funding for the College’s core educational activities; % of the total return has beenallocated to the Income and Expenditure account in 2014/15.

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During 2014/15 the total endowment grew by 7% to £14.172m (2013/14 £13.253m) and there was an overallpositive total return position of7% excluding the £446,000 allocated to fund expenditure.

Donations (i,% increase)

Depending on their nature, donations appear in either the Income & Expenditure account or the Statement ofTotal Recognised Gains and Losses. The total of those recognised as income, including sums released fromcapital amounts previously received, was £172,000 compared with £119,000 in the previous year.

There has been an overall increase in donations (both those that are treated as income in the year and those thatare shown in the Statement of Total Recognised Gains and Losses) of 52% to a total of £458,000 from £301,000

last year.

The Wolfson Foundation made a very significant contribution to the new Student Centre at Histon Road. Dr JoyceWheeler also generously supported the Centre and, in recognition of the continued generosity of Edwina Dunnand dive Humby, a room for a disabled student at the Centre is named in honour of Edwina Dunn’s mother, JeanDunn. Baroness Cohen and Mr James Cohen showed considerable commitment to the College by enabling theestablishment of the Head of Fundraising post.

The College has received major donations towards student support from the Ernest Hecht Charitable Foundation,the MariaMarina Foundation, Santander UK plc, the Thriplow Charitable Trust, and the Lucy Cavendish AlumnaeAssociation, amongst others.

Further significant gifts were received from Dr Cynthia Glassman, Mr Nigel Harvie, the Joanna Hewitt CharitableSettlement, Dr Ruth Jones, Dr Ann Limb, Mrs Moya Lonsdale, Mr Keith Maddocks, Sir Mark and Lady Moody-Stuart, Ms Katherine Naughton, Mrs Jillinda Tiley, Dr Lindsey Traub, along with other anonymous donations.

Miss Alison Russell generously supported the printing costs of the book to celebrate the College’s 50th

anniversary. Professor Peter Spufford established a prize in honour of his late wife Margaret, a former ResearchFellow. Smaller Annual Fund donations and regular donations continued to make an extremely valuablecontribution.

The College greatly appreciates the funding from the Newton Trust in support of the Cambridge Bursary and timelimited teaching fellowship Schemes .The College is also grateful to the Newton Trust and the Sutasoma Trust fortheir support of research fellowships and to the Newton Trust and Trinity College for their support of teaching inthe College.

As ever, the College is very grateful for the contribution it receives from the Colleges’ Fund: £538,000 this year.

The College remains extremely grateful to all its benefactors and supporters.

Gain on sale of property (decrease of 64%)In order to help pay for its new student centre at ioo Histon Road, the College sold its interest in a property whichit had received as a legacy. The gain on sale was £300,000 which amounted to 8% of the total income for the year.

In the previous year there was a larger gain resulting from the sale of another property of £839,000, also to fundthe College’s Histon Road development.

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Other income (69% increase)This heading covers receipts from photocopying, merchandise, fees from Visiting Fellows and other sundry items.

ExpenditureExpenditure has increased by % overall.

Education expenditureThere has been a total increase of z% in education costs with greater expenditure particularly in the areas ofteaching, tutorial, admissions and other educational facilities.

In common with all Cambridge colleges there is a shortfall on the core education accounts (fee income set againsteducational expenditure) of £46o,00o in 2014/15 compared with £422,000 in 2013/14.

Residences, catering & conference costsThese costs have increased by % overall with the main increases occurring in the cost of studentaccommodation (14% increase) and in catering provision for conference guests (g%).

The College’s combined Residences, Catering and Conferences’ income has increased by 13% overall (1.62gm

compared with £1.446m in 2013/14). Expenditure has increased by % overall (L2.o84m compared with £l.977m).

These expenditure figures represent a full cost allocation including all overheads. As the net result is a deficit itshows that there is still some way to go before the College is fully able to recover all costs but the trend this yearis in the right direction. If fixed overheads are excluded it is clear that the conference trade still makes animportant contribution to the College’s finances.

Balance SheetThe College Balance Sheet shows a Net Current Asset position at the yearend of £ 227,000 (2013/14 £7,346,000).

The reduction is due to a vastly reduced cash balance at the year-end as a major element of the balance at 30

June 2014 was the College’s receipt of £6m through its participation in the Cambridge Colleges Funding Plcprivate placement scheme through which aS colleges raised aom from three institutional lenders. These fundswere applied to the purchase of aoo Histon Road in August 2014.

Fixed assetsFixed assets total £21.864m. These include £n.395m for properties, furnishings, l.T. and other equipment.Investment assets make up the balance of £469,000. This year the total capital investment in new Fixed Assetswas £8.551m (primarily relating to the new Student Centre at ito Histon Road). This is a total increase in FixedAssets of £7.855m after disposals and depreciation. Investment assets have increased through net additions of£18,000.

Endowment AssetsIn accordance with the Higher and Further Education Statement of Recommended Practice, Endowment Assetsare shown separately totalling £14.172m in 2015 (a3.253m in 2014).

ReservesThe College’s overall reserves stand at £24.781m up just over am from £23.699m in 2013/14. Of these reserves,84% is held in unrestricted funds and a6% in restricted funds. The total movement on reserves principally reflectsthe surplus in the year, the Colleges’ Fund contribution, donations and benefactions in the year and the increasein the value of investments, reduced by the increase in the current pension liability.



Reserves policyA high level of capital is required for the College to fulfil its role within the University and survive for the longterm. Capital is needed to build and replace operational buildings and to provide income to meet operationalexpenses, of which the largest single element is salaries for academic and non-academic staff. Lucy CavendishCollege remains significantly under-capitalised as it strives to meet its running costs and to provide anappropriate environment and level of service to its students and Fellows. The Colleges’ Fund currently uses amathematical model to determine the capital need5 of a college based on a range of variables and the fact thatthe College is one of the largest recipients indicates the severity of its need. All Cambridge Colleges take anintergenerational 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 reservesoverthe longerterm.

The College relies on the total return from its investments both to fund the difference between its annualexpenditure and operating income and to maintain the real value of the Charity’s assets and future income. Itdoes not foresee this situation changing for many years. The Charity seeks to maintain its reserves at a level thatgenerates a total return sufficient to meet these objectives over the long term. The total return target of itsinvestment portfolio is the Retail Price Index rate of inflation plus 4.0%. The Reserves Policy does not precludethe Governing Body authorising a reduction in the reserves below the above defined level if it wishes toimplement specific initiatives that are likely to accelerate the fulfilment of the College’s strategic objectives. TheCharity’s reserves comprise its investment portfolio and short term cash resources.

CashflowOperating cash levels are generally held at low levels and historically cashflow has required very carefulmanagement, particularly through the summer period July to September, however this is steadily improving asincome increases and credit control is tightened. Cashflow from operating activities in 2014/15 was positive at£581,000. Overall, there was a net outflow of cash as the College used funds to purchase the new student centreataooHiston Road.

Staff costs and pensionsThe College makes pension fund contributions on behalf of its employees to defined benefit funds: theUniversities Superannuation Scheme (USS) and to a defined contribution scheme with NOW pensions. TheCollege previously contributed to another defined benefit scheme, the Cambridge Colleges Federated PensionScheme but it no longer has any active members in this scheme. However, the College continues to makepayments to this scheme in order to contribute to the deficit which it has accrued. Total payroll costs (academicand non-academic) increased by 8% over the year.

EmployeesIn order to fulfil its charitable purposes, the College employs Fellows as College Lecturers, Supervisors, Directorsof Studies, Tutors and senior Administrative Officers, all of whom, along with the President serve as charitytrustees as members of the Governing Body. The employment of the President and Fellows is undertaken withthe intention of furthering the College’s objectives and their employment directly contributes to the fulfilment ofthose aims. The private benefit accruing to the President and Fellows through salaries, stipends and employmentrelated benefits is objectively reasonable, measured against academic stipends generally, and indeed is generallymodest when compared with those of other colleges in Cambridge. Without the employment of Fellows, theCollege could not fulfil its charitable aims as a College within the University of Cambridge. The total number ofFellows in the year was 31. The College also employs a further 35 members of staff and engages other casual staffas necessary to provide the professional and service support necessary to run the College.

14 I For the Financial Year Ending 3Q June 2015


Carbon ReductionThe College is a member of the Cambridge Colleges’ Carbon Reduction Commitment Consortium through whichthe colleges work together to meet their obligations under the Government’s CRC Energy Efficiency scheme.Whilst the College is fully committed to the aims espoused by the Government’s scheme, it nevertheless feelsthat this should not disguise the fact that the scheme is a further tax on the College’s activities which, alongsidethe administrative burdens imposed, absorbs resources that could otherwise be used to support its educationalactivities.

Capital projects 2014115 and future work5Total capital expenditure during the year was £8.551m, the majority of this related to the College’s purchase of itsnew student centre at aoo Histon Road. This was completed on schedule in August 2014 and provides 6 en-suiterooms, 4 one bedroom, 4 two bedroom flats together with social space and gardens. A £500,000 deposit waspaid on the 26thJuly 2013 and the College paid a further £8.25m on completion of the building works. Othercapital expenditure during the year included various works on other College’s properties and mechanicalequipment together with ongoing investment in new IT systems and equipment and library books.

Major capital items planned during 2015/16 include a new servery for the Dining Hall, a new workshop formaintenance staff, general building refurbishment, rolling programme of IT upgrades and purchase of Librarybooks.

Challenges, risks and future plans

Although these accounts once again show an overall surplus for the year, this only arises because of the profitmade on the sale of operational property. Without this, the College would have been in deficit to the tune of£289,000. Nevertheless the funds realised from the sale have been utilised for further capital expenditure as partof the College’s purchase of the new student centre at ioo Histon Road and at the end of the year, the Collegewas in a stronger position than before with an increase of 5% in its wealth represented on its Balance Sheet.However, since a portion of this wealth relates to the College’s investment portfolio, this is of course subject tothe ups and downs of the global economic market. Fortunately, this remained positive in the period to 30 June

2015 but there has already been a downturn within the first few months of the College’s new financial year andthe future may be more challenging.

Although the College is financially stable, as before, the main risk remains the College’s financial sustainabilityover the longer term as the College is significantly underendowed. Although cashflow continues to improve, theunderlying trend is for the College still to make a deficit after depreciation. A continuing programme ofeconomies and restructuring over the last few years with a view to reducing expenditure has undoubtedly hadsome impact and an ongoing focus on cost control and commitment to efficient management remains important.However, a regime of cuts alone will not address the College’s sustainability. In order to provide the appropriatesupport and facilities for our current students and to safeguard the College’s future we must also continue toundertake planned growth and invest in capital, including new technologies to achieve better productivity.Income generation is as critical as cost cutting. Hence growth in student numbers, charging closer to economicrates for accommodation and other services, development of our conference activity, ambitious fundraising andsound investment management all have a crucial role to play in the College’s future.



The College has limited control over some of the major factors that affect these areas. As well as its effect uponthe investment portfolio, the global economic climate also has an impact upon other key areas such as studentnumbers, conference income and fundraising. Significant changes to the fees and funding regime have alsoaffected student numbers: nationally there has been a drop in undergraduate applications from mature students,though Cambridge has been less affected than some other universities. In recent years, the balance of students inthe College has shifted from about 5o:5o undergraduates and graduates to about 40:60 and this trend maycontinue as the University plans to grow its graduate population. Equally, the College now has a significantproportion of overseas students, hence the political landscape is also important as tightening of visa restrictionsmay have an impact on international students’ ability to come to the UK.

Partly in the light of the new fee regime and partly in line with general changes in society, student expectationscontinue to be higher, leading to increa5ed pressure on the College to deliver even more effectively in all areasfrom teaching to accommodation to IT provision and support. The College took a major step in borrowing fundsfor the first time to finance the purchase of its new student centre at ioo Histon Road. This is already having apositive impact upon student satisfaction and, over time, should have a positive impact on both cashflow andcosts. There remains a great need for student bursaries and hardship funds to ensure that all students withacademic merit are able to come to the College and complete their studies. The support that we have receivedfrom donors and supporters for student bursaries has been critical and has enabled us to increase the awards thatwe have made. We, and our students, will certainly continue to need such generosity.

This was the final year of office for the College’s jth President, Professor Janet Todd, who has led the Collegeover the past seven years with commitment and vision. During the year, Governing Body elected Jackie Ashley,journalist and broadcaster, as the 8th President. She took up office from a October 2015 and is energeticallyengaging with the College’s current activities and future development

Having celebrated the first o years of the College during the calendar year 2015, the Governing Body will shortlybe undertaking a process to update the Strategic Plan to identify the best approaches to setting the foundationsfor and meeting the challenges of its next o years.

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

(( /11Mrs Jackie Ashley Mrs Lesley ThompsonPresident Bursar

Date:(cfl(I(l”C Date: ct (i2.kc


Lucy Cavendish College Corporate Governance

1. The following statement is provided by the Trustees to enable readers of the financial statements toobtain a better understanding of the arrangements in the College for the management of its resources andfor 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. TheGoverning Body is constituted and regulated in accordance with the College statutes and is the bodyresponsible for the strategic direction of the College. Members of the Governing Body are also theTrustees of the charity and are listed on page 2. Student representatives and Visiting Fellows are invitedto Governing Body meetings for unreserved business and Fellows in Class D (research fellows) attend theunreserved and reserved meetings as observers. There is usually one formal Governing Body meeting andone informal meeting per term, together with the Audit meeting during the Michaelmas term at which theaudited 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. Council meets fortnightly during term time and just beforeand after term as necessary.

Membership of the Council during the Financial Year 2014-15:Professorianet Todd, President, ex officioDr Isobel Maddison, Vice President, ex officio and Secretary to the CouncilMrs Lesley Thompson, Bursar, ex officioDr Stephanie Ellington, Senior Tutor, ex officio to 17 August 2014Dr (Kathryn) Leigh Stoeber, Senior Tutor, ex officio from 18 August 2014Dr Anna Abulafia to 31 March 2015Mrs Christine HoughtonDr Henriette HendriksMrs Caroline Sierto 30 April 2015Dr Emily TomlinsonDrienny Koenig from lApril 2015Ms Alison Vinnicombe from 6 May 2015

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

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

7. The principal officers of the college are:

President Professor Janet Margaret Todd OBE MA PhDVice President Dr Isobel Maddison BA MA PhDSenior Tutor Dr Stephanie Ellington BSc MA PhD to 17 August 2014Senior Tutor Dr (Kathryn) Leigh Stoeber BS MS PhD from 18 August 2014Bursar Mrs Lesley Margaret Thompson MA MA ACA

Delegated authority is given to them during the Long Vacation.

17 I For the Financial Year Ending 30Fh June 2015

Lucy Cavendish College Corporate Governance

8. There are Registers of Interests of Trustees, the Council and Audit Committee and of the senioradministrative officers. Declarations of interest are made systematically at meetings.

9. The College’s Trustees during the year ended 30 June 2015 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 theachievement of policy, aims and objectives while safeguarding the public and other funds and assets forwhich the Governing 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 identify the principal risks to the achievement of policies,aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently,effectively and 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 developmentand maintenance of the internal control framework, and by comments made by the external auditors intheir management letter and other reports.

The Governing Body is responsible for ensuring that there is an effective system of internal control andthat accounting 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 responsiblefor managing income and expenditure within their own areas of operation and for bringing forwardbudget proposals through an annual budgeting process. Fellows, members of staff and students areencouraged to participate in the process through membership of relevant committees and workinggroups. The Budget is then considered by Council prior to approval by the Governing Body.

18 For the Financial Year Ending 30” June 2015

Lucy Cavendish College Responsibilities of the Trustees

The Trustees are responsible for preparing the Annual Report and financial statements in accordance withapplicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted AccountingPractice).

The College’s Statutes and the Statutes and Ordinances of the University of Cambridge require the Governing Bodyto prepare financial statements for each financial year which give a true and fair view of the state of affairs of theCollege and of the surplus or deficit of the College for that period. In preparing these financial statements theTrustees are required 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 timethe financial position of the College and enable them to ensure that the financial statements comply with theStatutes of the University of Cambridge. They are also responsible for safeguarding the assets of the College andhence for taking reasonable 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 informationincluded on the College’s website. Legislation in the United Kingdom governing the preparation and disseminationof financial statements may differ from legislation in other jurisdictions.


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

We have audited the financial statements of Lucy Cavendish College for the year ended 30 June 2015 whichcomprise the consolidated income and expenditure account, the consolidated statement of total recognised gainsand losses, the consolidated and College balance sheets, the consolidated cash flow statement and related notes.The financial reporting framework that has been applied in their preparation is applicable law and United KingdomAccounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the College’s Trustees, as a body, in accordance with College’s Statutes and theStatutes of the University of Cambridge and with section 151 of the Charities Act 2011 and regulations made undersection 154 of that Act. Our audit work has been undertaken so that we might state to the College’s GoverningBody those matters we are required to state to them in an auditors’ report and for no other purpose. To thefullest extent permitted by law, we do not accept or assume responsibility to anyone other than the College andthe College’s Trustees, for our audit work, for this report, or for the opinions we have formed.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITORS

As explained more fully in the Trustees’ Responsibilities Statement set out on page 4, the trustees are responsiblefor the preparation of financial statements which give a true and fair view.

We have been appointed as auditors under section 151 of the Charities Act 2011 and report in accordance withregulations made under section 154 of that Act . Our responsibility is to audit and express an opinion on thefinancial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland).Those standards require us to comply with the Auditing Practices Board’s [(APR’s)] Ethical Standards for Auditors.

SCOPE OF THE AUDIT OF FINANCIAL STATEMENTS

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient togive reasonable assurance that the financial statements are free from material misstatement, whether caused byfraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity’scircumstances and have been con5istently applied and adequately disclosed; the reasonableness of significantaccounting estimates made by the trustees; and the overall presentation of the financial statements. In addition,we read all the financial and non-financial information in the Annual Trustees’ Report to identify materialinconsistencies with the audited financial statements and to identify any information that is apparently materiallyincorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing theaudit. If we become aware of any apparent material misstatements or inconsistencies we consider theimplications for our report.

OPINION ON FINANCIAL STATEMENTS

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and the College’s affairs as at 30 June 2015 and of thegroup’s income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

• have been prepared in accordance with the requirements of the Charities Act 2011 and the Statutes of theUniversity of Cambridge; and

• the contribution due from the College to the University has been correctly computed as advised in theprovisional assessment by the University of Cambridge and in accordance with the provisions of Statute G,II, of the University of Cambridge.


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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report

to you if, in our opinion:

• the information given in the Annual Report of the Trustee’s is inconsistent in any material respect with the

financial statements; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

p ;Cuor qccPETERS ELWORTHY & MOORE

Chartered Accountants and Statutory Auditors

Salisbury HouseStation RoadCambridgeCB1 2LA

9 December2015

Peters Elworthy & Moore is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

For the Financial Year Ending 3O June 2015

Lucy Cavendish College Statement of Principal Accounting Policies

Basis of preparation

The financial statement5 have been prepared in accordance with the provisions of the Statutes of the College andof the 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(the SORP).

The income and expenditure account includes activity analysis in order to demonstrate that the College issatisfying its obligations to the University of Cambridge with regard to the use of public funds. The analysisrequired by the SORP is set out in note 7.

Basis of accounting

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

Basis of consolidation

The consolidated financial statements include the financial statement5 of The College and its subsidiaryundertakings for the year ended 30th June 2015. The results of the subsidiary undertakings acquired or disposedof during the period are included in the consolidated income and expenditure account from the date of acquisitionor up to the date of disposal. The activities of student societies have not been consolidated.

Recognition of income

The Governing Body agreed that the transfer made under Total Return would equate to S per cent. This is in linewith The College spending rule which permits the transfer of no more than 5 per cent of the closing balance of thefund. Each transfer is subject to the specific agreement of the Governing Body. All investment income is creditedto the income and expenditure account in the period in which it is earned. Income from restricted endowmentsnot expended in accordance with the restrictions of the endowment is transferred from the income andexpenditure account to restricted endowments.

Income from research grants, contracts and other services rendered is included to the extent of the completion ofthe contract or service concerned.

Donations and benefactions of an income nature are shown as income in the year in which they becomereceivable.

Charitable donations are recognised on receipt or where there is certainty of future receipt and the value can bemeasured reliably. The accounting treatment of a donation depends on the nature and extent of restrictionsspecified by the donor. Donations with no substantial restrictions are recognised as income in the income andexpenditure account. Donations which are to be retained for the future benefit of the College, and otherdonations with substantially restricted purposes, other than for the acquisition or construction of tangible fixedassets, are recognised in the statement of total recognised gains and losses as new endowments.

Grants and donations are received for the purposes of funding the acquisition and construction of tangible fixedassets. In the case of depreciable assets these are credited to deferred capital grants when the related capitalexpenditure is incurred and released to income over the estimated useful life of the respective assets in line withthe depreciation policy. Grants and donations of, or for the acquisition of, freehold land or heritage assets, whichare non-depreciable assets, are credited to the income and expenditure account in the year of acquisition.

College fee income is recognised in the period for which it is received and includes all fees chargeable to studentsor their sponsors.

22 For the Financial Year Ending 3O” June 2015


Pension schemes

The College participates in the Universities Superannuation Scheme (USS), a defined benefit scheme which isexternally funded and contracted out of the State Second Pension (52P). The as5ets of the scheme are held in aseparate trustee administered fund. Because of the mutual nature of the scheme, The College is unable toidentify it5 share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis andtherefore, as required by FRS 17 ‘Retirement Benefits’, accounts for the scheme as if it were a definedcontribution scheme. As a result, the amount charged to the Income and Expenditure Account represents thecontributions payable to the scheme in respect of the accounting period.

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

Tangible fixed assets

a. Land and buildings

Off site buildings are stated at co5t and on site properties are valued at insurance valuation. Where buildings havebeen valued at an insurance amount, they are valued on the basis of their depreciated replacement cost. Thevaluation was carried out by Gerald Eve in September 2003. Freehold buildings are depreciated on a straight linebasis over their expected useful economic life of 50 years. Freehold land is not depreciated.

Where land and buildings are acquired with the aid of specific bequests or donations they are capitalised anddepreciated as above. The related benefactions are credited to a deferred capital account and are released to theIncome and Expenditure Account over the expected useful economic life of the related asset on a basis consistentwith the depreciation policy.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that thecarrying amount of the fixed asset may not be recoverable.

Buildings under construction are valued at cost, based on the value of architects’ certificates and other direct costsincurred to 30th June 2015. They are not depreciated until they are brought into use.

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 a5ide 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



Where equipment is acquired with the aid of specific bequests or donations it is capitalised and depreciated asabove. The related benefactions are credited to a deferred capital account and are released to the Income andExpenditure Account over the expected useful economic life of the related asset on a basis consistent with thedeprecation policy. The related benefactions are credited to permanent capital.

Heritage AssetsThe College does not currently hold any heritage assets.

Investments

Investments are included in the balance sheet at market value.

a. Works of art, silver and other assets not related to education

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 lessany provision for impairment in their value. One of our student properties, 137 Chesterton Road, has beenincluded under Investments as it has been directly financed from our investment portfolio.Silver, works of art and other assets not related to education are valued at insurance value.

b. Estate Properties

Investment property is included at valuation and the aggregate surplus or deficit is transferred to a revaluationreserve, included within Permanent Unrestricted Undesignated Reserves. A valuation was carried out by Bidwells,Property Consultant, on 22 May 2015.

Stocks

Stocks are valued at the lower of cost and net realisable value.

Provisions

Provisions are recognised when The College has a present legal or constructive obligation as a result of a pastevent it is probable that a transfer of economic benefit will be required to settle the obligation and a reliableestimate can be made of the amount of the obligation.

Endowment fundsEndowment funds are classified under three headings:

• Where the donor has specified that the fund is to be permanently invested to generate an income streamfor the general purposes of the College, the fund is classified as an unrestricted permanent endowment.

• Where the donor has specified that the fund is to be permanently invested to generate an income streamto be applied for a restricted purpose, the fund is classified as a restricted permanent endowment.

• Where the donor has specified a particular objective other than the acquisition or construction of tangiblefixed assets, and that the College must or may convert the donated sum into income, the fund is classifiedas a restricted expendable endowment


Lucy Cavendish College Statement of PrincipalAccounting Policies

Taxation

On 1 June 2010 The College ceased to be an exempt charity and became a registered charity, number1137875, on 7 september 2010.

The College is also a charity within the meaning of Section 506 (1) of the Taxes Act 1988. Accordingly, The Collegeis exempt from taxation in respect of income or capital gains received within the categories covered by Section505 of the Taxes Act 1988 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that suchincome or gains are applied to exclusively charitable purposes

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

Contribution under Statute G,ll

The College is liable to be assessed for Contribution under the provisions of Statute G,ll of the University ofCambridge. Contribution is used to fund grants to colleges from the Colleges Fund. The College may from time totime be eligible for such grants. The liability for the year is as advised to the College by the University based on anassessable amount derived from the value of the College’s assets as at the end of the previous financial year.


Lucy Cavendish College Consolidated Income and Expenditure Account

NoteINCOME

Academic fees & charges

Residences, catering and conferences

Endowment and investment income

Donations 4

Cain on sale of property

Other Income

TOTAL INCOME

EXPENDITURE

Education 5Residences, catering and conferences &

Other expenditure 7

TOTAL EXPENDITURE

Operating Deficit

Contribution under Statute CII

Transfers to/(from) accumulated income within

endowment funds

NET (DEFICIT)/SURPLUS

30th June 30th June

2015 2014

£,000 £,000

1,065 1,068

2 1,629 1,446

3 446 426

172 119

300 839

54 32

3,666 3,930

1,525 1,490

2,084 1,977

188 159

3,797 3,626

(131) 304

142 106

11 410


Lucy Cavendish College Consolidated Statement of Total Recognised Gains and Losses

Balance b/fwd 1st July 2014

Appreciation/(depreciation) of Investment Assets

Income receivable from endowment asset investments

Endowment return transferred to income & expenditure

account

Unspent Restricted Fund Income Retained by Funds

Appreciation/(depreciation) of Fixed Asset Investments

Retained Surplus/(Deficit) for the Year

Colleges Fund

Benefactions and Donations

Actuarial gains and losses on pension scheme assets andliabilities

Total Recognised Gains/(Losses) for the Year

Balance c/fwd 30th June

Restricted Unrestricted

Funds Funds

£,000 £,000

Total Total

2015 2014

£,000 £,000

3,404 20,002 23,406 22,011

139 375 514 685

54 115 169 170

(126) (320) (446) (426)

(138) (4) (142) (106)

- -- 36

- 11 11 410

- 538 538 462

278 8 286 182

- 5 5 (18)

207 728 935 1,395

3,611 20,730 24,341 23,406

27 For the Financial Year Ending 3O” June 2015

Lucy Cavendish College Consolidated Balance Sheet — As at June 2015

General reserve excluding pension reserve

Pension reserve

Sub Total Reserves

Sub total excluding Deferred Capital Grants

24,781 23,6994,051 20,730

and signed on their behalf byMrs Leslev ThompsonBursar

Note

30thJune

2015

£,000

30thJune

2014

£,000

9 21,395 13,540

10 469 452

Fixed Assets

Tangible Assets

Investments

Endowment Assets

Current Assets

Stock

Debtors

Cash

Creditors: amounts falling due

within one year

Net current assets/(liabilities)

Total assets less current liabilities

Creditors: amounts falling due

after more than one year

Net assets excluding pension liabilities

Pension liability

Net assets including pension liabilities

Deferred Capital Grants

Endowments

Expendable endowments

Permanent endowments

Sub Total Endowments

Reserves

21,864 13,992

14,172 13,253

19 20

214 175

826 7,976

1,059 8,171

932 825

127 7,346

36,163 34,591

11,262 10,766

24,901 23,825

(120) (126)

24,781 23,699

11

1213

14

15

16

17

18

18

Restricted Unrestricted 2015 2014

Funds Funds Total Total

£,000 £,000 £,000 £,000

440 - 440 293

381 - 381 344

3,230 10,561 13,791 12,909

3,611 10,561 14,172 13,253

10,289 10,289 10,279

(120) (120) (126)

10,169 10,169 10,153

Total Funds

Approved by the Governing Body onMrs Jackie AshleyPresident

U’ iLk7

3,611 20,730 24,341 23,406


Lucy Cavendish College College Balance Sheet - As at 30 June 2015

30th 30th

June June2015 2014

Note £,000 £,000

Fixed AssetsTangible Assets 9 21,395 13,540

Investments 10 469 452

21,864 13,992

Endowment Assets 11 14,172 13,253

Current AssetsStock 18 19

Debtors 12 214 175

Ca5h 13 823 7,973

1,055 8,167

Creditors: amounts falling due 14 928 821

within one year

Net current assets/(liabilities) 127 7,346

Total assets less current liabilities 36,163 34,591

Creditors: amounts falling due 15after more than one year 11,262 10,766

Net assets excluding pension liabilities 24,901 23,825

Pension liability (120) (126)

Net assets including pension liabilities 24,781 23,699

Restricted Unrestricted 2015 2014Funds Funds Total Total

£,000 £,000 £,000 £,000

Deferred Capital Grants 16 440 - 440 293

Endowments

Expendable endowments 17 381 - 381 344

Permanent endowments 3,230 10,561 13,791 12,909

Sub total Endowments 3,611 10,561 14,172 13,253

Reserves

General reserve excluding pension reserve 18 - 10,289 10,289 10,279

Pension reserve 18 - (120) (120) (126)

Sub total Reserves - 10,169 10,169 10,153

Sub total excluding Deferred Capital Grants 3,611 20,730 24,341 23,406

Total funds 4,051 20,730 24,781 23,699

Approved by the Governing Body on and signed on their behalf by

Mrs Jackie Ashley Mrs Lesley ThompsonPresident Bursar I.

iL/6


Lucy Cavendish College Consolidated Cashflow Statement

2015 2014

£,000 £,000

Operating Activities

Operating deficit 11 410

Less Investment Income (446) (426)

Depreciation 683 586

Disposal of fixed assets (2) (837)

Release of deferred capital (27) (26)

Interest Payable 292 -

Pension deficit Increase/(Decrease) 1 (9)

(lncrease)/Decrease in Stocks 3 1

(Increase)/Decrease in Debtors (40) 52

lncrease/(Decrease) in Creditors 106 144

Net Cash lnflow/(Outflow) from Operating Activities 581 (105)

Returns on Investments and Servicing of Finance

Investment Income 274 275

Retained Endowment Income (142) (106)

Interest Paid (292) -

Net cash inflow from returns on investments and servicing of

finance (160) 169

Contribution to College’s Fund - -

Capital Transactions

Donations and benefactions 455 215

Sale of Property - 969

Private Placement Funding - 6,044

Capital Grant received from College’s Fund 538 462

Total capital receipts 993 7,690

Purchase of tangible fixed assets (8,551) (906)

Purchase of investment assets (13) (11)

Total capital payments (8,564) (917)

Net cash (outflow)/inflow from capital transactions (7,571) 6,773

NET CASH (OUTFLOW)/INROW (7,150) 6,237


Lucy Cavendish College Notes to the Accounts

Note

1 Academic Fees & Charges

Publicly Funded UG College Fee

eligible for student supportSelf funded UG College Fee

Graduate College Fees Receivable

Total

Cambridge Bursary Income

Total

2 Residences, catering and conferences income

Residential accommodation

3 Endowment Income

3a Analysis

Total return contribution (see note 3b)

Income from:

Land and buildings

Quoted securities

Fixed intere5t from units and bonds

Total

3b Summary of total return

Income from:

Land and buildings

Quoted and other securities and cash

Per capita fee

£4,185 & £4,500

£5,619, £6000, £6,678

£2,474

College members

ConferencesCollege members

Conferences

2015 2014

£,000 £,000

31 30160 159

Gains/(losses) from endowment assets:

Land and buildings

Quoted and other securities and cash

Investment management costs (see note 3c)

Total return for the year

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

Unapplied total return for year included within

statement of total recognised gains & losses (see note 19)

- 100

514 585

(22) (20)

683 854

446 426

2015

£,000

383

211

410

2014

£,000

393

202

400

995

Catering

Total

1,004

61 73

1,065 1,068

2015 2014

£,000 £,000

1,003 824

209 209

127 164

290 249

1,629 1,446

Restricted UnrestrictedFunds Funds 2015 2014

£,000 £,000 £,000 £,000

126 320 446 426

8 23 31 30

116 297 413 394

2 - 2 2

126 320 446 426

238 429



3c Investment management costs

Quoted securities

Total

2015 2014

£,000 £,000

(22) (20)

(22) (20)

Donations & Benefactions

Release from deferred capital (5ee note 16)

Total

Unrestricted

Funds

£,000

27 - 27

27 145 172

Teaching

Tutorial

Admissions

Research

Scholarships & Awards

Other Educational Facilities

7a Analysis of 2014/15 Expenditure by Activity

4 DonationsRestricted

Funds

£,000

5 Education Expenditure

145

2015

£,000

145

2014

£,000

93

26

119

2015 2014£,000 £,000

752 679

170 160

240 217

99 145

220 254

6 Residences, catering & conferences expenditure

Accommodation

Catering

7 Other Expenditure

Property, investment and management fees

College members

Conferences (inc. marketing costs)

College members

Conferences

44 35

1,525 1,490

2015 2014

£,000 £,000

1,282 1,126

267 286

163 225

372 340

2,084 1,977

2015 2014

£,000 £,000

188 159

Education


Investment, property and management

Staffcosts

(note 8)

£,000

706

836

Other OpExps

£,000

654

731

Depreciation

£,000

165

517

158 29 1

Included in the above costs are £119,152 worth of development costs including alumnae relations

2015

£,000

1,525

2,084

188

3,7971,700 1,414 683



lb Analysis of 2013/14 Expenditure by Activity

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

Average Staff Numbers (Non Academics are Full-Time Equivalents)

Academic

Non-Academics

Of the 31 fellows declared above, 16 are stipendiary

3 35 38 34

31 35 66 60

During the year emoluments paid to trustee5 in their capacity as College Fellows were:

Aggregate Emoluments

Staffcosts Other Op

(note 8) Exps Depreciation 2014

£,000 £,000 £,000 £,000

717 633 140 1,490

723 809 445 1,977

134 24 1 159

Education


Investment, property and management

7c Audit fees

Other operating expenses include:

Audit fees payable to the College’s external auditors

8 Staff

Emoluments

Social security costs

Other pension costs

1,574 1,466 586 3,626

2015 2014

£,000 £,000

17 16

College Non

fellow5 Academics 2015 2014

£,000 £,000 £,000 £,000

526 849 1,375 1,285

35 45 80 77

96 149 245 212

657 1,043 1,700 1,574

28 28 26

2015

£,000

657

2014

£,000

676



9 Fixed Assets - Consolidated and College

COST/VALUATION

At 1st July 2014

Additions

Disposals at cost/valuation

Revaluation during the year

Cost valuation at 30th June

Net book value

At 30th June 2015

At 30th June 2014

CollegeBuildings Furniture

The Insured Value of Freehold Land and Building5(2014: £20,350,000)

Kitchen Library Mech& Site & Equip IT Equip Books Equip Total

£,000 £,000 £,000 £,000 £,000 £,000 £,000

21,964 390 575 63 641 473 24,106

8,514 1 10 1 12 13 8,551

(14) - - - (3) - (17)

2015

DEPRECIATI ON

At 1st July 2014

Provided for the year

Eliminated on disposal

Depreciation at 30th June 2015

30,464 391 585 64 650 486 32,640

9,058 335 547 61 210 351 10,562

569 19 19 1 16 59 683

9,627 354 566 62 226 410 11,245

20,837 37 19 2 424 76 21,395

12,902 54 28 2 431 124 13,540

as at 30th June 2015 was £25,257,350



10 Investment Assets

Balance at beginning of year

AdditionsDisposals

App reciation/(de preciatio n)lncrease/(decrease) in cash balances held at fundmanagers

Balance at end of year

Represented by:

Works of Art

Cambridge Colleges’ Funding Plc


11 Endowment AssetsBalance b/fwd 1st July

Appreciation on revaluation of 137

Due from General Capital

Appreciation on revaluation of Ray Wattles

Additions

Disposals

Decrease in cash held by fund managersAppreciation on revaluation

Balance c/fwd June

Represented by:

Property

Due from General CapitalOther investments

Quoted securities - equities

Quoted securities - europe/overseas

Quoted securities - fixed interest

Cash in hand and at investment managers

£,000 £,000451 405

43 11

(25) 0- 36

Chesterton Road

469 452

2015 2014

£,000 £,000459 442

10 10

469 452

2015 2014

£,000 £,000

13,253 12,286

- 100

495 386

1 4

1,700 1,832

(2,115) (1,767)

464 (59)374 471

14,172 13,253

2015 2014

£,000 £,000

650 650

5,218 4,723

48 47

3,888 4,451

2,849 2,680

922 568

597 134

14,172 13,253

35 I For the Financial Year Ending 3Qth June 2015


Conference Control

Members of the College

Other

13 Cash

Creditors: amounts falling due14 within one year

Supplier5

University Fee5

Other

15 Creditors: amounts falling due

after more than one yearDue to Permanent

Capital Inc sinking fundloanPrivate Placement Funding

Private Placement Funding

Consolidated

2015 2014

£,000 £,000

42 15

48 43

15 During 2013-14, the College has borrowed from institutional investor5, 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 financial covenant of the

ratio of Borrowings to Net Assets and has been in compliance with the covenant at all times since incurring

the debt.

12 Debtors College

2015 2014

£,000 £,000

42 15

48 43

Bank Deposits

Cash

124 117

214 175

2015 2014

£,000 £,000

826 7,976

826 7,976

2015 2014

£,000 £,000

83 64

193 223

656 538

932 825

2015 2014

£,000 £,000

5,218 4,722

3,480 3,4802,564 2,564

11,262 10,766

124 117

214 175

2015 2014

£,000 £,000

823 7,973

623 7,973

2015 2014

£,000 £,000

83 64

193 223

652 534

928 821

2015 2014

£,000 £,000

5,218 4,7223,480 3,4802,564 2,564

11,262 10,766

36 I For the Financial Year Ending 3O” June 2015


16 Deferred capital grants Donations 2015 2014

£,000 £,000 £,000

Balance at beginning of year:

Buildings 249 249 222

Equipment 44 44 62

Grants and donations received:


Equipment 10 10 -

Released to income and expenditure account:

Buildings (13) (13) (8)

Equipment (14) (14) (18)

Balances at end ofyear:

____________________________


Equipment 40 40 44



17 Endowments

Balance at beginning of year:

Capital

Unspent income

New endowmentsIncome receivablefrom endowmentasset investments

Expenditure

lncrease/(decrease) inmarket value ofinvestments


Comprising:

Capital

Unspent income


Representing:

Scholarship funds

Prizes funds

Hardship funds

Travel grant funds

Other funds

General endowments

Total

Restricted Unrestricted Total Restricted 2015 2014permanent permanent permanent expendable Total Total

£,000 £,000 £,000 £,000 £,000 £,000

2,156 9,784 11,940 134 12,074 11,059

904 65 969 209 1,178 1,227

87 543 630 191 821 644

125 43 168 1 169 161

(107) (46) (153) (157) (310) (268)

65 172 237 3 240 430

3,230 10,561 13,791 361 14,172 13,253

2,231 10,494 12,725 134 12,859 12,075

999 67 1,066 247 1,313 1,178

3,230 10,561 13,791 381 14,172 13,253

1,111 - 1,111 22 1,133 1,074

89 - 89 2 91 56

327 - 327 213 540 518

5 - 5 - 5 2

1,698 - 1,698 144 1,842 1,754

- 10,561 10,561 - 10,561 9,849

3,230 10,561 13,791 381 14,172 13,253

38 I For the Financial Year Ending 3O” June 2015


18 Reserves

Balance at start of yearSurplus/(Ioss) retained for the yearActuarial gain/(loss)

Transfer in respect of depreciation on revaluedoperational properties

lncrease/(decrease) in market value of investments


19 Memorandum Unapplied Total Return

Brought forward

Appreciatio n/(depreciatio n)of investment assetsIncome receivable fromendowment assetinvestmentsEndowment returntran5ferred to income &expenditure account

2015Restricted Unrestricted Total

36

10,169 10,169 10,153

2014Total

£,000

3,972

685

170

20 Principal Subsidiary Undertakings

Lucy Cavendish Trading Limited England

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.

General 2015reserves Total

£,000 £,000

2014Total£,000

10,153 10,153 9,725

11 11 410

5 5 (18)

Funds£,000

1,472

Funds

£,000

2,929

£,000

4,401

138 375 513

55 116 171

(125) (321) (446) (426)

1,540 3,099 4,639 4,401

Country ofIncorporationand Operation

Proportionof sharesheld

100%



21 Pension Schemes

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 £2,024 (2014: £193), with contributions of £523 (2014£386), outstanding at the balance sheet date.

USS InstitutionsFRS17 — Retirement BenefitsPension Costs

The institution participates in the Universities Superannuation Scheme (USS), a defined benefit scheme which iscontracted out of the State Second Pension (52P). The assets of the scheme are held in a separate fundadministered by the trustee, Universities Superannuation Scheme Limited. Because of the mutual nature of thescheme, the scheme’s assets are not hypothecated to individual institutions and a scheme-wide contribution rateis set. The institution is therefore exposed to actuarial risks associated with other institutions’ employees and isunable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonablebasis and therefore, as required by FRS 17 “Retirement benefits”, accounts for the scheme as if it were a definedcontribution scheme. As a result, the amount charged to the income and expenditure account represents thecontributions payable to the scheme in respect of the accounting period.

The company participates in the Universities Superannuation Scheme (USS), a defined benefit scheme which iscontracted out of the State Second Pension (52P). The assets of the scheme are held in a separate fundadministered by the trustee, Universities Superannuation Scheme Limited. The company is required to contributea specified percentage of payroll costs to the pension scheme to fund the benefits payable to the company’semployees. In 2015, the percentage was 16% (2014: 16%). The company is unable to identify its share of theunderlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as required byFRS 17 “Retirement benefits”, accounts for the scheme as if it were a defined contribution scheme.

The latest available triennial actuarial valuation of the scheme was at 31 March 2014 (“the valuation date”), whichwas carried out using the projected unit method and is currently being audited by the scheme auditor. Based onthis 2014 valuation it is expected that employer contributions will increase to 18% from 1 April 2016.

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 schemewas £41.6 billion and the value of the scheme’s technical provisions was £46.9 billion indicating a shortfall of £5.3billion. The assets therefore were sufficient to cover 89% of the benefits which had accrued to members afterallowing for expected future increases in earnings.

FRS 17 liability numbers have been produced for the using the following assumptions:

2015 2014Discount rate 3.3% 4.5%Pensionable salary growth 3.5% in the first year and — 4.4%

4.0% thereafter —

Price inflation (CPI) 2.2% — 2.6%

40 For the Financial Year Ending 3Q June 2015


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

Male members’ mortality S1NA [“light”] V0B tables — No age rating

Female members’ mortality S1NA [“light”] VoB 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 2009 projections with a 1.25% pa long term rate were also adopted for the 2014 FRS17figures, for the March 2015 figures the long term rate has been increased to 1.5% and the CMI 2014 projectionsadopted, and the tables have been weighted by 98% for males and 99% for females. The current life expectancieson retirement at age 65 are:

2015 2014Males currently aged 65 (years) 24.2 23.7Females currently aged 65 (years) 26.3 25.6Males currently aged 45 (years) 26.2 25.5Females currently aged 45 (years) 28.6 27.6

2015 2014Existing benefitsScheme assets £49.Obn f41.6bnFRS 17 liabilities £67.Gbn £55.SbnFRS 17 deficit £18.6bn £13.YbnFRS 17 funding level 72% 75%

The total pension cost for the institution was £217,158 (2014: £207,522). The contribution rate payable by theinstitution was 16% of pensionable salaries.



Cambridge Colleges Federated Pension SchemeThe College is a member of a multi-employer defined benefits scheme, the Cambridge Colleges Federated PensionScheme. A full valuation was undertaken as at 315t March 2014 and updated to 3O” June 2014 by a qualifiedindependent Actuary. The principal actuarial assumptions at the balance sheet date (expressed as weightedaverages) were as follows:

June2015 June2014%p.a. %p.a.

Discount rate 3.7 4.2Expected long-term rate of return on Scheme assets 3.7 4•4*

Retail Prices Index (RPI) assumption 3.25 3.3Consumer Prices index (CPI) assumption 2.25 2.3Pension increases (RPI linked) 3.25 3.3Pension increases (capped RPI linked) 3.05 3.1*Adjusted for administration expenses

The underlying mortality assumption is based upon the standard table known as 52 mortality tables for averagenormal pensioners projected in line with the CMI 2014 projection and a target long-term improvement rate of1.0%pa (2014: same base table and an allowance for improvements using the 2013 projection table with a longterm improvement rate of 1.0% pa). This results in the following life expectancies:

• Male age 65 now has a life expectancy of 22.3 years (previously 22.3 years)• Female age 65 now has a life expectancy of 24.4 years (previously 24.3 years)• Male age 45 now and retiring in 20 years would have a life expectancy then of 23.6 years (previously 23.6)• Female age 45 now and retiring in 20 years would have a life expectancy then of 25.9 years (previously

25.8 years)

Employee Benefit ObligationsThe amounts recognized in the balance sheet as at 30th June 2015 (with comparative figures as at 30th June 2014)are as follows:

June2015 June2014£ £

Present value of Scheme liabilities (361,930) (347,280)Market value of Scheme assets 241,696 220,863Surplus/(deficit) in the Scheme (120,234) (126,417)

42 I For the Financial Year Ending 3Q11 June 2015


The amounts to be recognized in the profit and loss for the year to 30 June 2015 (with comparative figures for theyear ending 30 June 2014) are as follows:

201Sf 2014fCurrent service cost 0 0Interest on Scheme liabilities 14,403 14,677Expected return on Scheme assets (9,614) (8,665)Past service cost - -

Curtailment gain - -

Total 4,789 6,012

Actual return on Scheme assets 25,763 8,539

Changes in the present value of the Scheme liabilities for the year ending 30 June 2015 (with comparative figuresfor the year ending 30 June 2014) are as follows:

201Sf 2014fPresent value of Scheme liabilities at beginning of period 347,280 323,306Service cost including Employee contributions - -

Interest cost 14,403 14,677Past service cost - -

Curtailment gain - -

Actuarial losses/(gains) 9,049 17,886Benefits paid (8,802) (8,589)Present value of Scheme liabilities at end of period 361,930 347,280

Changes in the fair value of the Scheme assets for the year ending 30 June 2015 (with comparative figures for theyear ending 30 June 2014) are as follows:

2015f 2014fMarket value of Scheme assets at beginning of period 220,863 205,497Expected return 9,614 8,665Actuarial gains/(losses) 16,149 (126)Contributions paid by The College 3,872 15,416Employee contributions - -

Benefits paid (8,802) (8,589)Market value of Scheme assets at end of period 241,696 220,863

The agreed contributions to be paid by The College for the forthcoming year are £2,945 to cover Recovery Planpayments plus £3,914 to cover expenses subject to review at future actuarial valuations.

The major categories of Scheme assets as a percentage of total Scheme assets for the year ending 30 June 2015(with comparative figures for the year ending 30 June 2014) are as follows:

2015 2014Equities and Hedge Funds 69% 70%Bonds and Cash 25% 23%Property 6% 7%Total 100% 100%



The expected long term rate of return on the Scheme assets has been set in line with the discount rate i.e. 3.7%.

Analysis of the amount recognizable in the statement of total recognized gains and losses (STRCL) for the yearending 30 June 2015 (with comparative figures for the year ending 30 June 2014) are as follows:

2015E 2014kActual return less expected return on Scheme assets 16,149 (126)Experience gains and losses arising on Scheme liabilities 2,891 1,104Changes in assumptions underlying the present value of (11,940) (18,990)Scheme liabilities

_______________________

Actuarial gain/(loss) recognized in STRGL 7,100 (18,012)

Cumulative amount of actuarial gains and losses recognized in STRGL for the year ending 30 June 2015 (withcomparative figures for the year ending 30 June 2014) are as follows:

2015k 2014kCumulative actuarial gain/(loss) at beginning of period (129,149) (111,137)Recognised during the period 7,100 (18,012)Cumulative actuarial gain/(loss) at end of period (122,049) (129,149)

Movement in surplus/(deficit) during the year ending 30 June 2015 (with comparative figures for the year ending30 June 2014) are as follows:

2015 2014kSurplus/(deficit) in Scheme at beginning of year (126,417) (117,809)Service Cost (Employer Only) - -

Contributions paid by The College 3,872 15,416Finance Cost (4,789) (6,012)Actuarial gain/floss) 7,100 (18,012)Surplus/(deficit) in Scheme at the end of the year (120,234) (126,417)

Amounts for the current and previous four accounting periods are as follows:

2015 2014 2013 2012 2011£ £ £

Present value of Scheme (361,930) (347,280) (323,306) (288,109) (261,829)liabilitiesMarket value of Scheme assets 241,696 220,863 205,497 200,199 210,720Surplus/(deficit) in the Scheme (120,234) (126,417) (117,809) (87,910) (51,109)Actual return less expected 16,149 (126) 7,472 (36,610) 13,993return on Scheme assetsExperience gain/floss) arising on 2,891 1,104 (4,873) (5,975) 4,956Scheme liabilitiesChange in assumptions (11,940) (18,990) (45,550) (4,764) 13,354underlying present value ofScheme liabilities

44 I For the Financial Year Ending 30” June 2015


22 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 areconducted at arm’s length and in accordance with The College’s normal procedures.

23 Analysis of cash and bank balances

Atbeginning Cash At end

of year flows of year£000 £000 £000

Cash at bank and inhand 7,976 (7,150) 826

Loans

Net funds

24 Lease Commitments

7,976 (7,150) 826

The College is committed to f12.75k in lease payments to external landlords for student accommodation(2014: £51k) over the forthcoming year.

25 Contingent Liability Note

As disclosed in Note 21, with effect from 16th March 2007, the Universities Superannuation Scheme CUSS)positioned itself as a “last man standing” scheme so that in the event of an insolvency of any of the participatingemployers in USS, the amount of any pension funding shortfall (which cannot otherwise be recovered) in respectof that employer will be spread across the remaining participant employers.

Contingent liabilities and assetsA contingent liability exists in relation to the pension valuation recovery plan, since the company is an employer ofmembers within the scheme. The contingent liability relates to the amount generated by past service of currentmembers and the associated proportion of the deficit. Given that the scheme is a multi-employer scheme and thecompany is unable to identify its share of the underlying assets and liabilities, the contingent liability is notrecognised as a provision on the balance sheet. The associated receivable from the scheme in respect of thereimbursement of the company’s expenditure is similarly not recognised.

45 I For the Financial Year Ending 3Q June 2015

Documents

University of Cambridge Annual Report and Accounts Y’Lucy