Annual Report 2012 PDF

www.cam.ac.
uk/annual-report
Reports and Financial Statements for
the year ended 31 July 2012
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Front cover image:
We all fall over sometimes
A coloured version of an SEM image of submicron polymer pillars fabricated using lithographic process.
Transfer of vertically aligned carbon nanotube forests on top of these pillars allows their further exploitation
as hierarchical nano-structures to mimic super adhesive properties of the gecko-foot.
Photographer: Pola Goldberg Oppenhiemer, Department of Engineering
Annual Report of the Council 1
Annual Report of the General Board to the Council 15
Reports and Financial Statements 25
Contents
Annual Report of the Council
for the academical year 201112
2 University of Cambridge Annual Report 2012
The COUNCIL begs leave to report to the University:
The Chancellor
In its last Annual Report, the Council reported the
election, in October 2011, of Lord Sainsbury of Turville,
K, as Chancellor of the University in succession to HRH
The Duke of Edinburgh. Lord Sainsbury was installed
as Chancellor in the Senate-House on 21 March 2012,
and has carried out duties for the University since his
election, including brieng meetings on University
business, visits to Departments, Faculties, and Colleges,
presiding at the annual ceremonies to confer Honorary
Degrees and membership of the Guild of Cambridge
Benefactors, and attendance at ocial functions on
behalf of the University.
The Vice-Chancellor
On 1 October 2011, the Vice-Chancellor, Professor
Sir Leszek Borysiewicz, W, addressed the University
on The new imperatives, reiterating the Universitys
commitment to its values, and drawing attention to the
need to assess and describe Cambridges contribution
to society; to develop strategic, considered research
directions; to nurture the diverse communities within
Cambridge; and to strengthen the Universitys external
relationships. These themes retained their importance
throughout the academical year, for example in the
evolving plans for North West Cambridge, and have
been the subject of the Councils close and ongoing
attention. The Council continues to value the strong
and decisive leadership of the Vice-Chancellor in an
uncertain, challenging, and competitive national and
international context.
The Pro-Vice-Chancellors
The term of oce of three Pro-Vice-Chancellors came
up for renewal in 201112. After a formal review in
each case, the Council reappointed Professor Stephen
Young, EM, as senior Pro-Vice-Chancellor (Planning
and Resources) for a further period, until 31 July 2015;
and Professor Lynn Gladden, T, as Pro-Vice-Chancellor
(Research), and Dr Jennifer Barnes, MUR, as Pro-Vice-
Chancellor (International Strategy) until 31 December
2015. The Council recognizes and appreciates
the importance of the work of all of the Pro-Vice-
Chancellors and their dedication to their respective
portfolios.
The Council and its Committees
(i) The Council: responsibilities and operation
The Council is dened by Statute A as the principal
executive and policy-making body of the University,
having general responsibility for the administration
of the University, for the planning of its work, and
for the management of its resources. It is declared to
have power to take such action as is necessary for it to
discharge these responsibilities. It is also to perform
such other executive and administrative duties as may
be delegated to it by the Regent House or assigned to
it by Statute or Ordinance.
The Councils Statement of Primary Responsibilities
(annexed to this Report) is reviewed annually together
with its Standing Orders, the Code of Practice for
members of the Council, and the Statement of
Corporate Governance.
The Council continues to operate its internal processes
through ordinary regular meetings (eleven each
year) and, as necessary, special meetings, scrutiny
of business through the Business Committee, the
Executive Committee and other committees, and
through receipt and approval of routine business
by circulation. Business is monitored and managed
through the regular consideration of work plans. The
Council has continued to hold two strategic meetings
a year, one in September and one in the spring. Most
material considered by the Council is available to
members and sta of the University on its website at
http://www.admin.cam.ac.uk/committee/council/.
(ii) Council membership
The membership of the Council during the 201112
academical year is appended as Annex A.
Annual Reports of the Council and the General Board 3
for the academical year 2011-12
Dame Mavis McDonalds and Dr Vanessa Lawrences
rst terms of oce will expire on 31 December 2012.
Dame Mavis McDonald will seek reappointment;
Dr Lawrence will not. The Council is grateful to her
for the contribution which she has made and continues
to make to the Councils deliberations and work.
In accordance with the provisions in Ordinance, the
Council appointed Mr John Shakeshaft to chair the
Nominating Committee for members of the Council in
class (e). The Committee submitted a recommendation
to the Council on 22 October 2012.
1

In the course of the 200910 academical year, the
Councils Standing Advisory Committee on Student
Matters (SACSM) considered a submission from its
student members proposing substantive changes
to the process for electing student members of the
Council and the General Board. During the Michaelmas
Term 2011, the Council and the General Board received
and considered detailed proposals. A Joint Report
of the Council and the General Board on student
membership of the two bodies was approved by Grace
10 of 15 February 2012. With eect from the elections
in Lent Term 2013, candidates standing for election
as Presidents of the respective Student Unions will
also stand, in a personal capacity, for election to the
Council. It will remain possible to elect a candidate
who is independent of both Student Unions.
(iii) Working group on Council business
The working group on Council business chaired by
Mr John Shakeshaft submitted an interim report about
the submission and presentation of Council business
to the Councils strategic meeting in September 2011.
Formal recommendations were submitted and
approved during the Michaelmas Term 2011, resulting
in signicant changes to the format of the materials
presented to the Council from 1 January 2012. The
Council considers that these changes have done much
to increase the clarity and transparency of Council
materials and to focus discussion; it is anticipated that
other Council Committees will now adopt a similar
format.
In the second phase of its activities, the working group
has considered broader questions around the Councils
role and functioning. Following extensive consultation
with current and previous members of the Council, the
working group submitted proposals to the Council at
its meeting on 16 July 2012, for revisions to the style
and content of the Council handbook. In particular,
it was proposed that there should be a section setting
out the legal duties and responsibilities of members of
the Council as Charity Trustees. The Councils Standing
Orders were also signicantly revised. The Council
approved these materials at its meetings on 16 July
and 22 October 2012 for adoption for use with eect
from 1 January 2013.
(iv) Routine reporting to the Council
During 201112, the Council received a progress report
on the North West Cambridge Project at every meeting.
Cambridge University Press and the Local Examinations
Syndicate (Cambridge Assessment) report annually
to the Council; the respective Chief Executive Ocers
and the Chairs of the Syndicates attend to present their
reports and to answer questions. The Oce of External
Aairs and Communications and the University
Development Oce also report annually.
(v) Review of the Unifed Administrative Service (UAS)
During 201112, the Council considered the
recommendations made by the review of the strategy,
plans, and budget of the Unied Administrative Service
(UAS), chaired by Dame Mavis McDonald, together
with the Registrarys response. The review, on the
basis of a thorough analysis of the data and written
submissions provided to it, had endorsed the overall
strategy of the UAS.
(vi) Review of IT infrastructure and support
The review of IT infrastructure and support in the
University, chaired by Professor Keith Burnett,
Vice-Chancellor of the University of Sheeld,
which was initiated by the Council during 201011,
1
Nomination of members of the Council in class (e): external members, Regulation 1 (Statutes and Ordinances, p. 116). Graces reappointing Dame Mavis McDonald
and appointing Dr Shirley Pearce and Mr Mark Lewisohn were subsequently approved (Reporter, 6284, 201213, p. 117).
has completed its deliberations and will report during
Michaelmas Term 2012.
(vii) Revisions to the Universitys Sites and Buildings
Regulations
During the year, both the Council and the General
Board have discussed revisions to the Universitys
Sites and Buildings Regulations. A Joint Report was
published on 30 November 2011 (Reporter, 6247,
201112, p. 269) and the new Regulations were
brought into force in February 2012 (Reporter, 6255,
201112, p. 458). This followed an extensive process
to bring together all the many elements by which
the Universitys estate is managed through statute,
ordinance, and committee practice and record them in
one set of regulations. While no substantive changes
were made, the new Regulations provide some
much needed clarity and accessibility for ocers and
committee members with responsibilities in this area
and in addition, clarify the basis on which Departments
can, with the approval of the Buildings Committee,
take direct responsibility for minor building works and
maintenance. A process has also been established for
the issue of a Reporter Notice prior to the undertaking
of building works considered not to require Regent
House approval.
Governance and constitutional matters
(i) Technical Advisory Group: Review of the Statutes,
and Ordinances
The work of the Technical Advisory Group on the
Review of the Statutes, and Ordinances, chaired by
Professor David Yates, Warden of Robinson College,
is reaching fruition. A Report comprising a full set
of revised Statutes was published in the Reporter of
28 June 2012 seeking approval in principle by the
Regent House. The Report asked the Regent House to
consider for the rst time the introduction of a form
of Special Ordinance, primarily intended to contain
material previously enshrined in Statute, which would
not be subject to Privy Council approval but which
could only be amended by means of a Report to the
Regent House, followed by a Discussion and Grace.
The introduction of Special Ordinances would enable
the focus of the Statutes to be the more fundamental
constitutional matters, with the removal to Special
Ordinance of a signicant amount of detailed material.
A Discussion took place on 2 October 2012 and the
Council has published its response to the remarks
made in Discussion (Reporter, 201213, 6280, p. 37;
6283, p. 85). The Regent House has subsequently
approved a Grace giving approval in principle to the
form of the new Statutes (Reporter, 6285, 201213,
p. 124). It is expected that a nal Report seeking
approval of the new Statutes will be issued in the
Easter Term 2013 and that, if approved by Her Majesty
in Council, the revised Statutes and accompanying
Special Ordinances will come into eect by early 2014.
(ii) Electronic voting in ballots of the Regent House
In November 2005, the Council published a Report
on voting arrangements which suggested, inter alia,
that consideration be given as to whether electronic
voting by the Regent House could be introduced
(Reporter, 6018, 200506, p. 190). During Lent Term
2012, the Council considered and approved in
principle a proposal for the introduction of electronic
voting (with a retained provision for paper voting) in
all ballots of the Regent House. A working group has
been established to consider the costs and practical
workings of the proposals and will submit detailed
recommendations to the Council during Lent Term
2013. The Council will submit a Report to the University
thereafter.
Accountability and audit
(i) Accountability and the Universitys governance
arrangements
The last of three annual accountability exchange
meetings took place between HEFCE and the
University in accordance with the action arising
from the HEFCE Quinquennial Assurance Review
in June 2008. The University continues to enjoy full
assurance. In response to a request from the HEFCE
in August 2011, the University agreed to review
its governance arrangements in the light of the
changing Higher Education context by the end of the
201314 academical year and inform the HEFCE of
its conclusions. The Audit Committee has asked the
Council to consider how such a review might best be
conducted and has suggested that it might follow the
model of self-reection which had been adopted for
preparation of the quinquennial visit by HEFCE in 2008.
(ii) Woolf Inquiry Report: Audit Committee
Working Group
The Audit Committee Working Group, which is
responsible for considering the Universitys policies
and procedures in the context of the ndings and
recommendations of the Woolf Inquiry Report
continues to make good progress. The Group,
chaired by Mr John Shakeshaft, will report in due
course on changes, as necessary, to current policies,
practices, and governance arrangements concerning
the acceptance of benefactions, the admission of
postgraduate students, the acceptance of research
funding, and the establishment of international
partnerships.
(iii) Cambridge University Press: Joint Oversight Group
A Joint Oversight Group is providing support to
the Cambridge University Press executive and is
monitoring the Presss response to the questions
raised in the external auditors report for the
academical year 201011 about the suitability and
eectiveness of the Presss nancial and operational
controls. The Group, chaired by Mr John Shakeshaft, is
assisting and advising the Press on the introduction,
implementation, and acceptance of appropriate risk-
based controls over several reporting periods and a
nance change programme in support of the business
including a major new systems implementation.
(iv) Policy against bribery and corruption
A policy against bribery and corruption was approved
on 23 April 2012 and subsequently published in the
Reporter (Reporter, 6265, 201112, p. 593). The policy
sets out the responsibilities and legal liabilities which
the Bribery Act 2010 confers on the University as an
institution; on individual employees; and on third
parties supplying services to the University.
(v) Risk, emergency, and continuity management
In response to an internal audit report on the
Universitys business continuity arrangements, a
new emergency and continuity planning framework,
emergency management policy, and an updated
continuity planning policy were approved by the
Council on 28 May 2012. Since then, a thorough review
of emergency management arrangements has taken
place and, as a result, revised emergency response
plans at University and local level have been drafted
for approval by the Risk Steering Committee on
behalf of the Council in Michaelmas 2012 with roll-out
anticipated during 201213. The new plans encompass
both the emergency management and business
continuity aspects of emergency response.
(vi) Review of the Universitys subsidiary companies
governance and risk management procedures
In September 2011, the Council approved the Audit
Committees report on its review of the Universitys
subsidiary companies governance structures and risk
management procedures. In May 2012, a follow-up
report was received outlining the actions taken by
each of the subsidiaries in response to the Committees
recommendations. Good progress had been made.
Some more work was required with Fitzwilliam
Museum Enterprises Ltd and with IfM Education and
Consultancy Services Ltd and JBS Executive Education
Ltd where reviews of governance structures were
underway but not completed. The Audit Committee
will be receiving an update by the end of the calendar
year.
(vii) Membership
There was one change in the Audit Committees
membership during the academical year. In October
2011, Dr Susan Lintott stepped down as a class (d)
member and the Committee resolved to co-opt Dr
Keith Carne, First Bursar at Kings College, in her stead.
University resources
(i) Financial position and pressures
The 2012 Budget Report indicated some signs of
improvement in the nancial position. The pessimistic
outlook of the previous year was replaced by cautious
optimism as the cumulative Chest decit predicted for
the period 200910 to 201516 reduced from 36m to
23m, and with a return to surplus expected in 2014
15 one year ahead of schedule. In part, this recovery
is driven by the eciencies attained over the past
few years. Allocations for 201112 were reduced by
2% compared to the previous year, and the voluntary
severance scheme has removed just under 4m from
the baseline. The pay award of a at 150 p.a. in August
2011 was less than the budgeted 0.5%.
Against this, however, is the unwelcome indication that
the 9,000 fee will be frozen at that value in 201314
and possibly for longer. Institutions charging less than
the maximum will be able to apply an inationary
increase but the xed value of the cap will represent a
real terms cut for those, like Cambridge, charging the
maximum fee.
Further nancial pressure arises from the
implementation of the recommendations of the
Wakeham Report, whereby the indirect costs
chargeable to Research Council grants are reduced in
order to drive eciency savings within HEIs. This is a
departure from the principles of full economic costing.
Whilst Cambridge has achieved eciencies, the eect
of the Wakeham reforms is to reduce the savings with a
corresponding impact on the Universitys bottom line.
(ii) 2012 Budget Report
In view of these and other cost pressures, the 2012
Budget Report did not recommend the relaxation of
the projected 1% increase in Allocations in 201213
and onwards. The Council, through the Planning and
Resources Committee (PRC), has agreed that the
1% increase should apply for the whole of the next
planning period. This represents a continuing real-
terms cut in Allocations.
(iii) College fee transfer
Negotiations with the Colleges over the value of the
transfer of funding under the new fee regime were
concluded satisfactorily during the year and included
a new approach to the division of costs to support
bursaries and other elements of student support. The
Council is grateful to the Colleges for the co-operative
spirit in which the negotiations were conducted.
(iv) The Capital Plan
The Capital Planning Framework introduced in
201011 was developed in consultation with Schools.
The Capital Plan assigns building projects to a green
zone (rm intention to build) and an amber zone
(not as yet a rm intention) according to School
(and other) priorities approved by the PRC. Approval
to proceed was given to the rst of the projects to
receive contributions from the Capital Fund: the new
Chemical Engineering and Biotechnology building,
the Data Centre, and an extension to the Wolfson
Brain Imaging Centre. The Capital Fund also provides
funding assistance for the purchase of the equipment
needed for grant-supported research projects and for
the provision of urgently needed general teaching
and learning and research equipment. The Capital
Plan assumes a contribution of 33m annually from
a variety of sources. Funding for building projects is
supplemented by donation support of not less than
15%, which must be underwritten by Departments.
(v) Sustainability metrics
To assist in longer term strategic planning, a set of
sustainability metrics are being developed covering
the full range of the Universitys operations. These will
allow the Council to track performance over time and
make comparisons with cognate institutions. Although
initially paper-based, the metrics will eventually be
accessible via a live, web-based system with the
opportunity to drill down on individual metrics and
review the supporting data.
(vi) External fnancing
The Council, on the recommendation of the Finance
Committee, agreed, in December 2010, to seek
authority in advance from the Regent House to arrange
external borrowing of up to 350 million. This was
granted by Grace in February 2011. Rothschilds Debt
Advisory Department was commissioned to advise on
external nancing and presented a rst report to the
Finance Committee at its meeting on 14 September
2011. The report was subsequently considered by
the Council at its strategic meeting on 26 and 27
September 2012. Further reports had been brought
to the Finance Committee on 14 March 2012, 9 May
2012, and 11 July 2012. On each occasion, the Finance
Committee had rearmed its recommendation to the
Council that external borrowing should be pursued.
Moodys rating agency visited the University in June
2012 and indicated a rating.
Although not within the reporting period, the
Council is pleased to conrm to the University that,
at its meeting on 24 September 2012, it accepted
the Finance Committees recommendation that the
University should issue, as soon as possible, a bond
of up to 350m for general corporate purposes to
promote the wider academic mission of the University.
Moodys published its Aaa rating (with a stable
outlook) on 2 October 2012. On 9 October 2012, the
University agreed the terms of that bond issue. The
amount is 350 million, the coupon is 3.750 per centum
per annum, and the maturity date is 2052. The Council
and Finance Committee consider that the factors
of cost, exibility, tenor, risk (current and future),
and aordability of borrowing are appropriate and
manageable in the context of the Universitys current
nancial constraints, risks, and outlook.
Government policy and the national environment
(i) The new fee regime and its implications
In its Annual Report for 201011, the Council
noted that it had conducted its business and made
its decisions in a dicult and rapidly changing
environment. The same has been true in 201112.
The new fee regime and its implications continue to
be the subject of discussion and debate and, indeed,
protest and activism. The University will continue to
monitor the impact on access of the new fee regime.
The Council last year reected on the Universitys
response to the occupation of the Combination Room
and noted the Universitys commitment to permitting
the lawful expression of opinion. On Tuesday, 22
November 2011, a protest prevented the Minister
of State for Universities and Science from giving a
lecture on The idea of the university as part of a lecture
series hosted by the Centre for Research in the Arts,
Social Sciences, and Humanities. The Council issued a
statement noting the value which it attached to the
diversity of opinion and view; its belief that freedom of
expression is a fundamental principle of the University;
and its view that the protest violated that principle.
The subsequent charge of a student by the University
Advocate and the verdict and sentence which, on
14 March 2012, the Court of Discipline delivered in
the case generated strong feelings and vigorous
representations. A topic of concern was brought
forward by members of the Regent House and was
the subject of a Discussion on 24 April 2012. On 22
June 2012, the Septemviri heard an appeal from the
decision and sentence of the Court of Discipline. A
Notice, setting out the decision of the Septemviri to
uphold the Court of Disciplines guilty verdict but to
substitute a sentence that the defendant be rusticated
for one term rather than the seven originally imposed
by the Court of Discipline was published together with
the reasoned decisions of both the Court of Discipline
and the Septemviri (Reporter, 6273, 201112, p. 750).
The Universitys Courts are bodies independent of the
Council over which the Council has no jurisdiction.
The Council did not, therefore, at any point, seek to
interfere with or to comment upon the case while it
continued. Once the case was concluded, the Council
published a Notice in response to the remarks made in
Discussion (Reporter, 6283, 201213, p. 84).
(ii) Government immigration policy
The Council, in its 201011 Report, noted that
the Home Oces new rules on immigration had
potentially serious implications for the Universitys
capacity to recruit the best international academics
and students. The Vice-Chancellor has, in the course of
the past year, regularly raised the Universitys concerns
about the negative impact on higher education of
the governments current immigration policies with
the Minister of State for Universities and Science, the
Home Secretary, and other government ministers
and ocials. Following its meeting on 18 June 2012,
the Council issued and published on the University
website, a statement deploring the current policy.
Teaching and research
Teaching and research is the responsibility of the
General Board and of the Schools, Faculties, and
Departments. The General Board report annually to the
Council. Their Report for 201112 is annexed to this
Report.
(i) Governance arrangements for the Fitzwilliam
Museum and Kettles Yard
The Joint Report of the Council and the General Board
on the governance arrangements for the Fitzwilliam
Museum and Kettles Yard, approved by Grace 2 of
18 July 2012, transferred responsibility for those
institutions to the General Board with, it is anticipated,
consequential benets to the Universitys educational
provision and research output as well as to the
overall governance arrangements for the Universitys
Museums and Collections.
The Fitzwilliam Museum was an Institution under
the supervision of the Council when valuable and
important pieces of jade were stolen on 13 April 2012.
The Council therefore had a legitimate interest in the
theft and in the measures taken to enhance security
at the Universitys museums and was reassured to
learn that, notwithstanding previous reports on the
satisfactoriness of the security arrangements, three
reviews of security at the Museum had taken place
in the days following the theft. The National Security
Adviser for the Arts Council had been asked to bring
forward the date of his annual visit and to review
security prior to the start of the exhibition: The Search
for Immortality: Tomb Treasures of Han China. His
report concluded that security measures mitigate or
reduce risks to Very Low, and at an acceptable level
to allow UK Government Indemnity to be granted
for the exhibition. Further reviews were undertaken
by companies which insure objects at the Museum.
The recommendations of those reviews are being
implemented.
(ii) Educational development
Amongst the educational developments described
more fully in the General Boards Report, attention is
drawn to the introduction of new Triposes, with eect
from October 2013, in Human, Social, and Political
Sciences and in Psychological and Behavioural Sciences
(approved by Grace 4 of 12 October 2012), and to
signicant reforms to the English Tripos (summarized
in the General Boards Notice (Reporter, 6276, 201112,
p. 869)) arising from the General Boards Strategic
Review of that Faculty.
(iii) HEFCE: policy and consultation
The General Board responded to a HEFCE consultation
on a risk-based approach to quality assurance and
to a HEFCE/UUK/Guild HE consultation on public
information about Higher Education. (These responses
can be found at the Academic Divisions Educational
and Student Policy website (http://www.admin.cam.
ac.uk/oces/education/consultations/index.html).)
In connection with the latter, the Universitys entries
for the public Key Information Sets, required by
HEFCE and intended to provide standard information
about undergraduate programmes across the sector,
were published in October 2012 as part of the online
Undergraduate Prospectus.
(iv) The University and A level reform
The Board has, particularly by means of the external
engagements of the Vice-Chancellor and the Pro-Vice-
Chancellor (Education), been considering the extent of
the Universitys and the Russell Groups engagements
with changes to A levels, as proposed by the Secretary
of State for Education and by OFQUAL.
(v) International strategy
An International Strategy Committee was formed,
as a Joint Committee of the Council and the General
Board, to take forward and provide oversight for the
Universitys international activities at the institutional
level. A paper on International Engagement has been
issued for consultation in the University.
(vi) Strategic research initiatives
Over the last two years, eight strategic research
initiatives have been developed. These initiatives,
which include Energy, represent the Universitys
most important areas for future research. Within this
framework the University was successful in gaining
funding for a Cambridge Centre for Advanced Research
in Energy Eciency (CARES) in Singapore. CARES will
serve as an intellectual hub for research, scholarship,
entrepreneurship, and for postgraduate/postdoctoral
training, and will be located in Singapore within the
Centre for Carbon Reduction in Chemical Technology.
The initial phase of the project is directed towards
minimizing the carbon footprint of petrochemical and
rening technologies.
University employment
(i) Employer Justifed Retirement Age
The Human Resources Committee, in response to the
governments announcement of the abolition of the
national retirement age with eect from 6 April 2011,
nalized a Report for Council and the General Board.
This Report was put to the Regent House in December
2011 (Reporter, 6249, 201112, p. 347) and a proposal
for an Employer Justied Retirement Age (at age 67)
for established Ocers only was accepted. A new
Retirement Policy has now been implemented.
(ii) Changes to the Cambridge University Contributory
Pension Scheme (CPS)
The University and Assistants Joint Board (UAJB) on
8 May 2012 approved the recommendations arising
from the Special Joint Negotiating Committee on
revisions to the Cambridge University Contributory
Pension Scheme (CPS). This followed the formal sta
consultation which took place between 5 August 2011
and 11 November 2011. The CPS trustees have been
consulted in parallel. The nal revisions have been
endorsed by the General Board and Council and a
Notice concerning the changes has been published
(Reporter, 6282, 201213, p. 55).
(iii) Equality objectives
The University consulted widely to develop equality
objectives, a requirement of the Equality Act 2010.
The objectives identify the priorities for the next four
years, including seeking to improve the Universitys
gender balance at senior levels of the organization,
and continuing to provide an inclusive environment for
work and study. The draft objectives were published
in April 2012 and formally adopted in July 2012. In
addition, the Universitys Combined Equality Scheme
was updated in January 2012 to reect the Equality
Act. It emphasizes the Universitys commitment to fair
and equal treatment for all legally protected groups.
(iv) Revision to Statute U, Grievance Procedure
The Council considered and approved the proposed
revisions to the Statute U, Grievance Procedure,
subject to further work also being carried out on the
Disciplinary Procedure. Following a Discussion in the
Regent House, an amended Grace was approved on
27 July 2012.
(v) Review of the Senior Academic Promotion process
The University set up a Working Group in 2010 to
review the Senior Academic Promotion process.
A number of recommendations were implemented
at the time and during the course of this year a
change to the scoring methodology was approved for
implementation in the 2013 round, following a number
of minor changes that were approved for incorporation
in the previous round. A new numerical scoring system
will assist the Faculty Promotions Committees and Sub-
Committees in the task of creating a numerical rank
order of applicants for each of the Oces.
(vi) Review of various elements of pay and reward
arrangements
A sub-committee chaired by the Pro-Vice-Chancellor
(Institutional Aairs) was set up to review aspects of
Pay and Reward including market supplements and
an extension of the grade 12 pay scales. The current
pay and reward provisions had been implemented
with the single salary spine in 2006. There have, in
the intervening period, been signicant changes
in the external market employment conditions for
both academic and academic-related sta which are
hindering the Universitys capacity to recruit and retain
senior sta. Market supplements are an increasingly
unsatisfactory means of addressing the misalignment
between University salaries and those elsewhere both
within and outside the sector. The sub-committee
is planning to consult on proposals during the
North West Cambridge
Following submission of the overall outline planning
application for the project in September 2011, a public
consultation was undertaken by Cambridge City
Council and South Cambridgeshire District Council,
the local authorities responsible for determining the
application. This resulted in a number of technical
changes to the application being requested, which
were completed in March 2012. It was also agreed
with the local authorities that negotiation of the
Heads of Terms for the section 106 legal agreement
would be undertaken in order that they could be
considered for approval alongside the planning
application. The grant of planning consent would
then be secured once the section 106 legal agreement
was signed. Following extensive discussions with
ocers and members, the application was formally
considered by the local authorities Joint Development
Control Committee (Fringe Sites) at its meeting
on 8 August 2012. A resolution to grant consent
was unanimously approved, subject to site-wide
planning conditions, completion of design codes, and
approval of Reserved Matters relating to each phase
of development. The section 106 legal agreement is
now in course of preparation and is anticipated to be
available for completion and planning consent legally
secured in December 2012.
In October 2011, the Council requested that the West
and North West Cambridge Estates Syndicate bring
forward proposals for a rst phase of development
comprising some 530 key worker residential units for
qualifying University and College sta, approximately
300 postgraduate accommodation units, and
development sites for approximately 350 units for
market sale to residential developers. In order to
ensure that there is a functioning community from
the outset, the local centre and community facilities
comprising foodstore, local shops, primary school,
nursery, community rooms, doctors surgery, Police
oce, and playing eld facilities should also be
completed as part of the rst phase. Development of
the rst phase will require completion of substantial
infrastructure comprising roads, drainage, and services,
including an energy centre that will supply a district
heating main serving all the residential units on the
site, as part of the requirement for all homes to be built
to the Code for Sustainable Homes Level 5.
Although not within the reporting period, it should be
noted that the Council, at its meeting on 22 October
2012, agreed to publish a Report to the University
seeking authority to commence development of
University land at North West Cambridge. A ballot of
the Regent House will take place in January 2013. If a
Grace approving expenditure on the proposal is given,
commencement of infrastructure works on site could
begin in spring 2013, with building works starting
at the end of the year, leading to completion of the
majority of the phase 1 elements by July 2015.
Development
(i) Closure of the 800th Anniversary Campaign
In last years Annual Report, it was reported that the
Council and the Colleges Committee had decided
to bring the 800th Anniversary Campaign to a close.
The closure of the Campaign was formally announced
at a reception for donors and supporters in London
in November 2011. The nal Campaign total was
1.172bn and the Council received a full analysis of
the funds raised against the original objectives for the
Campaign at its meeting on 20 February 2012.
(ii) A new Campaign: focus, form, organizational
structures, leadership
Since the decision to close the 800th Anniversary
Campaign, the Council and the Colleges Committee
have been considering the form of a new Campaign.
To assist the Council in its consideration, external
consultants were commissioned to advise on
the nature of the new Campaign and also on the
organizational structures that would be necessary to
support its ambitions. The ndings of these reviews
were considered by the Council at its strategic meeting
on 23 April 2012. The Council agreed that detailed
proposals for the themes and priorities for a new
Campaign, and the strengthening of the Universitys
Development Oce and how it should be funded
in the future, would be brought forward for further
discussion at its next strategic meeting in September
2012. There would then be formal consideration of
the resultant recommendations by the relevant senior
bodies in the University.
Following the resignation of Mr Peter Agar from the
post of Director of Development, with eect from
31 March 2012, a committee has been established
to consider candidates for appointment to this post.
In parallel with these developments, the Council
has considered initially a proposal from Cambridge
University Health Partners (the Academic Health
Science Centre comprising the University, Cambridge
University Hospitals Foundation NHS Trust, Papworth
Hospital Foundation NHS Trust, and Cambridgeshire
and Peterborough Foundation NHS Trust) for the
creation of a new charity from the current charitable
arrangements of the NHS partners in CUHP. This
would not involve the transfer of any University assets.
The proposal also includes a commitment to create
an integrated oce for fundraising for medical and
health purposes to assist all four partners, jointly and
severally, in securing greater benet from philanthropy
for strategic priorities in these elds and for the
patients whom they serve. Formal proposals will be
considered by the Council and the NHS Trusts in early
2013.
26 November 2012
L. K. Borysiewicz, Vice-Chancellor
David Abulaa
N. Bampos
Richard Barnes
Charles Bell
D. J. A. Casserley
Stephen J. Cowley
Athene Donald
R. J. Dowling
I. M. Le M. Du Quesnay
Nicholas Gay
David Good
Andy Hopper
Christopher Hum
F. P. Kelly
Vanessa V. Lawrence
Robert Lethbridge
Mavis McDonald
Rosalyn Old
Susan Oosthuizen
Rachael Padman
John Shakeshaft
Sam Wakeford
A. D. Yates
ANNEX A
Council membership 201112
The Chancellor and the Vice-Chancellor
To 31 December 2012 To 31 December 2014
Elected as Heads
of Colleges
Prof. David Yates, R
Sir Christopher Hum, CAI
Prof. Francis Patrick Kelly, CHR
Prof. Robert David Lethbridge, F
Elected as Professors
or Readers
Prof. David Samuel Harvard Abulaa, CAI
Prof. Dame Athene Margaret Donald, R
Prof. Nicholas John Gay, CHR
Prof. Andrew Hopper, CC
Elected as members
of the Regent House
Dr Richard James Barnes, EM
Mr Robert John Dowling, SID
Dr David Arthur Good, K
Dr Rachael Padman, N
Dr Nick Bampos, TH
Dr Stephen John Cowley, SE
Mr Ian Mark Le Mercier Du Quesnay, N
Dr Susan Marian Oosthuizen, W
Members in class (e)
(external members)
Dr Vanessa Vivienne Lawrence
Dame Mavis McDonald (Deputy Chair, 2011)
Mr Dominic Casserley, JE
Mr John Shakeshaft, T
Student members (to 30 June 2012) Student members (from 1 July 2012)
Mr Thomas Parry-Jones, JN
Mr Gerard Tully, TH
Mr Morgan Wild, SID
Mr Charles Bell, Q
Ms Rosalyn Old, R
Mr Sam Wakeford, TH
Secretary: the Registrary
ANNEX B
STATEMENT OF PRIMARY RESPONSIBILITIES
The Council has adopted this Statement of Primary
Responsibilities.
The principal responsibilities of the Council are dened
by University Statute A, IV, 1 which reads:
(a) The Council shall be the principal executive
and policy-making body of the University. The
Council shall have general responsibility for the
administration of the University, for the planning of
its work, and for the management of its resources; it
shall have power to take such action as is necessary
for it to discharge these responsibilities. It shall also
perform such other executive and administrative
duties as may be delegated to it by the Regent
House or assigned to it by Statute or Ordinance.
(b) The Council shall have the right of reporting to
the University. It shall advise the Regent House on
matters of general concern to the University.
(c) The Council shall perform such duties in connection
with fnancial matters as are assigned to it by
Statute F, I.
(d) The Council shall make an Annual Report to
the University, and shall initiate and submit a Grace
for the approval of the Report by the Regent House.
(e) The Council shall have the power of submitting
Graces to the Regent House and to the Senate. The
procedure for the submission of Graces shall be
prescribed by Ordinance.
(f ) The Council shall oversee the work of all those
institutions in the University which are placed
under its supervision, and shall ensure that the
University ofcers assigned to those institutions are
satisfactorily performing the duties and fulflling the
conditions of tenure of their ofces.
Pursuant to these responsibilities the Council:
through its Finance Committee, its Audit
Committee and the Planning and Resources
Committee ensures the Universitys accountability
for the proper use of public funds;
supervises the fnancial position of the University
through its statutory Finance Committee;
arranges audit through its statutory Audit
Committee;
conducts legal business and ethical scrutiny,
especially in respect of the acceptance of
benefactions and investment responsibility,
through its Executive Committee;
discharges its responsibilities in relation to the
University as an employer through the Human
Resources Committee (HRC), a joint Committee
with the General Board;
develops University policy on the advice of
the General Board and that of specialist
advisory bodies;
conducts planning and resource allocation
through the Planning and Resources
Committee (PRC) and the Resource Management
Committee (RMC), both joint Committees with
the General Board;
deals with business about buildings and the
University estate with the advice of the Buildings
Committee ( a joint Committee with the General
Board which reports through the PRC), and on the
advice of the Finance Committee;
informs and advises the Regent House through
Reports, Notices and Graces, and through
considering remarks made at Discussions;
conducts the Universitys relations with
Government, HEFCE, other national bodies, and
local and regional bodies;
supports and advises the Vice-Chancellor,
and through him or her the team of Pro-Vice-
Chancellors;
supervises University institutions placed under its
supervision, particularly through receiving reports,
and also through the PRC and the HRC;
through the Finance Committee exercises fnancial
and some other supervision of Cambridge
University Press, the Local Examinations Syndicate
(Cambridge Assessment), University-owned
companies and some free-standing bodies such as
the Cambridge scholarship trusts;
pursuant to Act of Parliament, discharges
responsibilities for the University Student Unions
through its Student Matters Committee;
makes (or recommends) senior appointments
(including the Vice-Chancellor, Pro-Vice-
Chancellors, the Registrary, and, through its
Standing Appointments Committee established
by Ordinance, Directors and other senior sta in
the Unied Administrative Service;
assures risk management, emergency
management and value for money surveillance;
monitors the implementation of major projects,
through special groups and the Information
Strategy and Services Syndicate, and the North
West Cambridge Strategy Committee;
keeps University governance and similar matters
under review;
makes a statutory annual report to the University;
monitors its own performance and efectiveness.
The Council has published the following statement
(Statutes and Ordinances, 2012, p 114):
NOTICE BY THE COUNCIL
Statement of intention
In carrying out their functions as the principal
executive and policy-making body of the University
the Council will consult the Regent House on questions
of policy which in the Councils judgement are likely
to prove controversial. They will do this by submitting
a Grace to the Regent House for the approval of a
provisional decision or statement of intention; where
appropriate, such a Grace will allow for the expression
of a preference between alternative options. The
Council will give consideration to remarks made at any
Discussion of such matters and to the outcome of any
vote on them.
Annual Report of the
General Board to the Council
1. Introduction
1.1 The General Board present this Annual Report on
their work for the academical year 201112.
1.2 The year under review saw the completion of
major organizational tasks referred to in previous
years reports, in particular:
(a) The follow up actions from the review of
teaching and research in the social sciences
(Reporter, 6217, 201011, p. 600) were
substantially concluded with the publication
of three further Reports:
on the introduction of new Triposes in
Human, Social, and Political Sciences and
in Psychological and Behavioural Sciences
(Reporter, 6230, 201011, p. 958) .
on the constitution of a (unifed)
Department of Psychology (Reporter, 6271,
201112, p. 740); and
on the area Centres, bringing them within
the Department of Politics and International
Studies (Reporter, 6251, 201112, p. 392).
(b) The Faculty Board of English responded
positively to the recommendations of the
review of the Faculty, chaired by the Provost
of Kings College. Among the most signicant
developments, the Board approved a major
reform of the English Tripos (see paragraph
3.2). In addition the Board, in consultation
with the Council of the School of Arts and
Humanities, approved a signicant increase
in the Facultys teaching resources, through
a programme to establish new University
Lectureships which, over time, should reduce
the Facultys current over-reliance on College
Teaching Ocers for core teaching and
examining.
(c) The Joint Report of the Council and
the General Board on the governance
arrangements for the Fitzwilliam Museum
and Kettles Yard, approved by Grace 2 of 18
July 2012, transferred responsibility for those
institutions to the General Board with, it is
anticipated, consequential benets to the
Universitys education provision and research
output as well as to the overall governance
arrangements for the University Museums and
Collections.
2. Academic standards and Quality Assurance
and Enhancement
2.1 The Board of Graduate Studies reported to the
University (Reporter, 6231, 201011, p .998)
on proposed changes to the arrangements
for consideration of graduate matters, to:
bring together cognate activities regardless of
student type; streamline procedures to generate
eciencies (including saving academic sta
time); and align policy and operations for all
types of students to achieve greater clarity and
equity of treatment.
2.2 Following approval of the Boards Report,
responsibility for matters of policy relating to
Graduate Students and the qualications for
which they may be registered transferred from
the Board of Graduate Studies to the General
Boards Education Committee. Implementation
has enabled the Board of Graduate Studies,
which had hitherto had a very heavy agenda, to
give increased attention to individual student
cases and operational matters. The Education
Committee considers the Minutes of the Board of
Graduate Studies, the Board of Examinations, the
Board of Executive and Professional Education,
and those of the Senior Tutors Standing
Committee on Education. This enables the
Education Committee to take a holistic approach
to the Universitys educational provision,
irrespective of mode of study.
2.3 The new Standing Committee of the Education
Committee on Equality and Diversity has taken
forward recommendations of the 201011
Gender Working Group, and has developed a
Code of Practice on reasonable adjustments to
Annual Report of the General Board to the Council
teaching and assessment for disabled students.
The Code of Practice sets clear expectations that
certain adjustments to teaching will be made
where recommended for an individual student,
and sets out a procedure for consideration of
requests for alternative modes of assessment.
The Board have approved the Code for
implementation with eect from 201213:
http://www.admin.cam.ac.uk/oces/education/
support/reasonable_adjustments.pdf.
2.4 The Teaching and Learning Support Services
Steering Group made its rst set of grants from
the Teaching Innovation Fund for implementing
innovative practice in learning and teaching
provision. Eight grants were made, worth c.
120,000. The Group continued its discussion of
CamTools and Virtual Learning Environment (VLE)
provision.
2.5 Learning and teaching reviews were undertaken
of the following: the Departments of Chemistry
and of Earth Sciences; the Faculty of Asian
and Middle Eastern Studies; the Institute of
Criminology; and the Language Centre. The
then Department of Experimental Psychology
and Department of Social and Developmental
Psychology were reviewed jointly with the
Review Panel also asked to consider, at the
Boards request, the question of a proposed
merger of these institutions. In this connection
the merger, proposed by the Boards Report on
the constitution of a Department of Psychology,
was approved by Grace 4 of 18 July 2012. The
Board also approved recommendations arising
from their Strategic Review of the Department
of Genetics. Responses to reviews of the
following institutions were considered and
recommendations taken forward: the Cambridge
Programme for Sustainability Leadership; the
Faculties of History and of Mathematics; and the
Departments of Materials Science and Metallurgy,
of Pathology, of Pharmacology, and of Physics.
3. Degrees, courses, and examinations
3.1 The major development was the approval, at
the beginning of the academical year, of the
new Triposes in Human, Social, and Political
Sciences and in Psychological and Behavioural
Sciences, to be oered to undergraduates from
October 2013. Following approval of that Report,
steps were taken both to publicize the new
Triposes externally and to establish appropriate
governance arrangements, as well as liaison with
the Colleges.
3.2 Following the Boards Full Review of the Faculty
of English, the Education Committee approved a
set of recommendations for reform of the Tripos
from 201314. The recommendations aimed to
co-ordinate College and Faculty teaching and
reduce demands upon Part I students; strengthen
the relationship between teaching and research;
and to make more eective use of resources.
Details were set out in the Boards Notice on
Regulations for Examinations (Reporter, 6276,
201112, p. 869).
3.3 The Board considered proposals from the
Faculty Board of Clinical Medicine to introduce
two routes to a primary M.D. Degree: a standard
route for registered Graduate Students
conducting research part-time; and a route for
Cambridge graduates. It was further proposed
that the traditional M.D. Degree be re-named
the Doctor of Medical Science to distinguish it
from the primary degree. The proposals were
the subject of a Report approved by the Regent
House in the Michaelmas Term (Reporter, 6248,
201112, p. 314).
3.4 New M.Phil. courses were approved in:
Astronomy; International Relations; Materials
Science and Metallurgy; and in Public Policy.
A new part-time M.St. course in Creative Writing
was approved, and the M.St. course in Historic
Environment was temporarily suspended for
201112. A new M.Res. course in Ultra-Precision,
in collaboration with Craneld University, was
approved.
3.5 The Board approved changes to the regulations
for the Ph.D. Degree to permit the submission of
other work, for example musical compositions,
in addition to the dissertation. Following
consultation via the Schools, the Board also
agreed further to amend the regulations for the
degree by removing the facility for candidates to
submit additional published work which is not
connected with the subject of their theses.
4. External scrutiny and stakeholder
engagement
4.1 The University participates in three national
student surveys: the National Student Survey
(NSS) for nal-year undergraduates; the
Postgraduate Research Students Survey (PRES);
and the Postgraduate Taught Student Survey
(PTES).
4.2 The response rate to the 2011 NSS was 54%,
and the Board were pleased to note that the
University had ranked top, at 94%, for student
satisfaction amongst UK universities in the
NSS. On the whole the few Departments that
had received lower than average scores in
the 2010 survey had improved in 2011. With
modest sample sizes, it is unsurprising that data
showed year-on-year uctuations. Concern was
expressed, however, that Economics had scored
below average for three years in a row, and the
Faculty was asked for a plan to address the issues
raised in the NSS responses.
4.3 Participation in PRES 2011 was 54%, a signicant
increase over the previous response rate of
34%. This allowed results to be split down by
institution. Some 86% of respondents said
that the overall experience of their research
programme met or exceeded their expectations.
This gure matched that nationally and for the
Russell Group, and had improved from 81%
in 2009. However, the results, in particular in
relation to supervision, have caused the Board of
Graduate Studies to undertake work to determine
what action should be taken to improve the
position.
4.4 The response rate to the 2012 PTES was 48.2%,
which showed a marked increase in postgraduate
students engagement with the survey. A detailed
analysis of the results will be considered by
the Education Committee in the Michaelmas
Term 2012.
4.5 A number of teaching programmes were subject
to scrutiny by professional, statutory, and
regulatory bodies. The Board received positive
reports on visits by: the Architects Registration
Board (ARB) for the M.Phil. in Environmental
Design in Architecture (Department of
Architecture), the British Computer Society and
Institute of Engineering and Technology for the
Computer Science Tripos; the Oce for Standards
in Educations (OFSTED) for the P.G.C.E. Early Years,
Primary, and Secondary programmes oered by
the Faculty of Education; and the Engineering
Accreditation Board (EAB) for the M.Eng.
4.6 The Education Committee oversaw a signicant
project to collect data required by HEFCE to
provide information for applicants for admission
in the form of the Key Information Sets (KISs),
published in September 2012 for each Tripos.
These include data on teaching time and
methods, and assessment; data drawn directly by
HESA on student satisfaction from the Universitys
National Student Survey results; and employment
data drawn from the Destination of Leavers from
Higher Education Survey (DLHE). The results can
be found in the individual subject pages of the
online Undergraduate Prospectus at http://www.
study.cam.ac.uk/undergraduate/index.html.
4.7 The Board, through their Education Committee,
submitted a mid-cycle follow up report to the
Quality Assurance Agency (QAA) on actions taken
in response to recommendations made in the
Agencys 2007 Institutional Audit, which was
approved by the Agency. Representations were
made by the Vice-Chancellor in response to a
request by the QAA to review the University again
in 201112; agreement was reached to defer
review until the Lent Term 2013. Preparations are
well underway.
4.8 The Board responded to a number of national
consultations, including a HEFCE Consultation
on a risk-based approach to Quality Assurance,
a HEFCE/UUK/Guild HE Consultation on Public
Information, and a number by the QAA as part
of its on-going review of the UK Quality Code for
Higher Education. A response was also made to
a consultation by the Oce of the Independent
Adjudicator (OIA) on its role. Responses are
published on the web at http://www.admin.cam.
ac.uk/oces/education/consultations/index.
html. Common themes running through these
responses were support for a more risk-based
approach by external regulators and a reduction
in the resources required in dealing with external
regulatory requirements.
5. International activities
5.1 In the Michaelmas Term the Board approved
a protocol to support Schools, Faculties,
and Departments in initiating international
partnerships, providing better co-ordination
of international activities and ensuring that
legal and reputational factors are incorporated.
The protocol will be kept under review and
amendments will be proposed following
feedback from the Schools. The revised Financial
Regulations were approved, requiring the
written consent of the Director of Finance for any
overseas activity involving either or both setting
up any establishment and employing individuals
overseas.
5.2 In the Lent Term 2012 the Board approved a
strategy underpinning our approach to India.
In May 2012 the International Strategy Oce
(ISO) and University Research Oce (URO)
established a joint Europe Working Group of
EU specialists from the ISO and URO to provide
analysis and internal policy recommendations
for the Universitys relationship with the
European Union. The International Strategy
Oce specically focused on interaction
with the UK government and the legislative
processes in Brussels to ensure the University
is well positioned to contribute to the new
EU Framework Programme for Research and
Innovation, Horizon 2020. The ISO has supported
Schools, Faculties, and Departments in hosting
working visits to enable Principal Investigators to
develop collaborations with the US, China, Brazil,
and Africa.
5.3 A draft paper on International Engagement
was received by the Board on 9 May 2012 and
referred to the newly established International
Strategy Committee (ISC) (a joint committee
of the Council and General Board). The
International Strategy Committee has launched
a formal consultation incorporating the work
of several key areas of the Collegiate University,
including a survey of each Colleges international
engagement. Recommendations from the ISC
collated from these core constituents will inform
a revised paper to be presented initially to the
General Board in 2013.
6. Research
6.1 Research income grew by 9% compared with
20102011, most of which is attributable to
grants from the European Commission. The
Research Councils and UK Charities continued
to be the Universitys main sponsors, generating
37% and 26% respectively of the total research
income received while funds received from
the European Research Council now represent
22% of this total. As noted last year, Research
Council income has continued to fall, albeit
marginally (2%). However, the value, based on
100% full economic costing (fEC) of applications
and contracts submitted by the University to
all funders increased during 201112 to 1.54
billion, compared to 1.26 billion in 201011.
6.2 The Research Policy Committee remains
concerned at the Universitys low overhead
recovery rate, especially when compared with
our major UK competitors, and it intends to
address this in detail during the forthcoming
year. In support of the need to keep up to date
with changes to UK research funding, during
201112 the University engaged with eight other
Russell Group members in a project to enable the
exchange between them of directly comparable
research management information. In parallel
with this, and building on the X5 project,
which facilitates the research grant application
process, a joint MISDResearch Oce project has
begun to undertake a comprehensive update
of the Universitys Research Oce systems and
procedures.
6.3 In January 2012 the Research Services Division
joined the Academic Division as part of the
University Research Oce. This now comprises
a Research Operations Oce, which has
remained in Mill Lane, and a Research Strategy
Oce, including support for the Research
Excellence Framework (REF), which is based in
the Old Schools to provide enhanced support
for the Pro-Vice-Chancellor (Research).
6.4 The 201112 academical year was the rst
in which the University was faced with the
indirect costs-saving measures introduced
by the Research Councils in accordance
with the recommendations of the Wakeham
Review (published June 2010). A further
recommendation was that the Research Councils
should encourage more intensive use of existing
assets across the research base. Alongside this
recommendation, a reduction in their budgets
for capital funding led Research Councils to
revise the requirements for requesting funding
for equipment and facilities in grant proposals
from mid-2011. In light of these changes,
a project, South East England Science and
Engineering Collaborative (SEESEC) was initiated
by the Pro-Vice-Chancellors for Research
from Imperial College, Oxford, Southampton,
UCL, and Cambridge to support the sharing
of research facilities across these universities
with the intention of giving academic sta
access to a wider pool of facilities, as well as
increasing utilization of existing resources and
the opportunity for new collaboration. Led by
the Universitys Research Oce, a working group
was set up in Michaelmas Term 2011 to build a
database of all equipment costing over 10,000
in University of Cambridge STEM Departments,
and the availability of these resources for
external usage. The rst phase of the project has
now been completed at all the collaborating
institutions, with the University launching its
online record system in August 2012: http://www.
admin.cam.ac.uk/oces/research/equipment/
default.aspx.
6.5 In July 2012, RCUK launched its Concordat
to support Research Integrity to provide a
comprehensive, but exible, national framework
for good research conduct and its governance:
http://www.rcuk.ac.uk/media/news/2012news/
Pages/120711.aspx. In addition to the Research
Councils, initial signatories to the Concordat
included DfEL, HEFCE, NIHR, Universities UK, and
the Wellcome Trust. All HEIs are likely to become
signatories since the major funding bodies have
announced already that they will require this
as a condition of future awards. HEFCE and the
Research Councils have also announced that
they will gather feedback through their existing
assurance mechanisms. Additionally, every
signatory will be required to produce an annual
statement which must be made publicly available
and which outlines actions taken to support
and strengthen understanding of research
integrity as well as providing both an assurance
that processes for dealing with allegations of
misconduct in research are transparent, robust,
and fair and also a statement on any formal
investigations in this area.
6.6 In view also of information on future
expectations relating to Open Access received
from certain Funding Councils and major
charities, the Research Policy Committee (RPC)
has set up a working group to consider the
Universitys position. The Working Group has
met twice and expects to report to the RPC
and also to the General Board during
6.7 University preparations for the 2014 REF
have gathered momentum during 201112.
Governance and advisory mechanisms
have been set up, headed by the REF Policy
Committee, comprising the Pro-Vice-Chancellor
(Research), the Heads of Schools, and the Head
of the Research Oce. This is underpinned
by supporting committees established to
gather advice and guidance from across the
University as well as from colleagues with
HEFCE REF Panel duties. The task of compiling
sta data and accompanying research outputs
in the appropriate format has been simplied
considerably from previous Research Assessment
Exercises by the introduction of a computer
system which collects most of the publications
information required, particularly in the science,
technology, engineering, and medical disciplines
where electronic publications have become
the norm. To date, most University Units of
Assessment (UoA) Committees appear to be
making good progress against the Universitys
REF timetable, using the above system to
score research outputs and to record salient
information. Meanwhile, the Universitys REF
Equality Code of Practice was one of a very small
number approved by HEFCEs Equality Committee
at the rst pass while REF work undertaken to
date has also been approved by the Universitys
own Equality Assurance Committee.
6.8 As anticipated in last years Report, the major
area of concern to UoA Committees is the
compilation of impact case studies together
with additional information on eligible types of
impact, which was released by HEFCE in February
2012. Since April 2012, there has been constant
interaction between the Universitys central REF
team, UoA Chairs and the researchers concerned
since working up case studies usually involves
several iterations. It also frequently necessitates
obtaining substantive evidence, usually from
external sources, to support claims for excellence
of the research impact. Valuable input is also
provided by Cambridge Enterprise and the Oce
of External Aairs and Communications, and this
will become of increasing importance as case
studies are nalized in readiness for inclusion
in the University submission to be made in
November 2013.
7. Finance and planning
7.1 The Board welcomes the signs of improvement
in the nancial position set out in the 2012
Budget Report, whereby the cumulative Chest
decit predicted for the period 200910 to
201516 reduced from 36m to 23m, and with
a return to surplus expected in 201415 one
year ahead of schedule. The Board are grateful to
the Councils of the Schools and institutions for
exercising prudent nancial management within
the guidelines set by the Planning and Resources
Committee.
7.2 This year was the rst in which undergraduate
applications were received in the new fee
environment, and the impact of these and
new HEFCE student number controls were the
subject of intense media coverage. Whilst UCAS
recorded a national decline in students applying
and ultimately being accepted by the HE sector,
applications to Cambridge remained steady and
initial data suggests that signicant progress will
have been made against targets, including those
for expenditure on bursaries, fee-waivers, and
widening participation, agreed with OFFA. The
knock-on eects for postgraduate recruitment
remain a matter of concern. The capped fee for
Home/EU students is the only regulated fee; the
announcement that the maximum would not be
increased in 2013 will have an adverse nancial
impact. The Planning and Resources Committee
has continued to evolve policy for all other
unregulated fees, abolishing the separate Island
rate for new admissions from 2013. Responding
to comments that the general rate of increase of
overseas fees caused problems for continuing
students, overseas fees now depend on year of
entry. The PRC has further modied this so that
the fee for overseas Ph.D. students admitted in
2013 will be xed at the same cash value for each
of the three years of their course. This is intended
to provide much greater certainty of future costs
under the fee for the course policy for research
students. The policy is less easy to introduce
where courses are longer or where fees are set
with reference to annual announcements of the
maximum that sponsors will pay, but the position
will be kept under review.
7.3 A Working Group on Student Numbers, set
up jointly with the Colleges, reported and the
Groups recommendations were the subject
of wider consultation. Postgraduate student
numbers will be allowed to increase at 2% a year,
with a review in 2015; undergraduate numbers
will be maintained at the current level.
8. Establishment of new senior positions
8.1 As the result of generous benefactions, the
Board proposed the establishment of a Chong
Hua Professorship of Chinese Development in
the Department of Politics and International
Studies and a Florence Nightingale Foundation
Professorship of Clinical Nursing Research in the
Department of Medicine.
8.2 With the support of the Medical Research
Council, the Board proposed the establishment
of MRC Research Professorships of Biostatistics
and of Mitochondrial Medicine.
8.3 The following Professorships were established,
or re-established, supported on general
University funds by the reallocation of recurrent
funding within the Schools concerned:
Professorship of Statistics in the Department of
Pure Mathematics and Mathematical Statistics;
Professorship of Sustainable Reaction
Engineering in the Department of Chemical
Engineering and Biotechnology;
Professorship of General Practice in the
Department of Public Health and Primary Care.
8.4 The Board proposed the establishment of the
following (proleptic) Professorships to enhance
the Universitys submission to the Research
Excellence Framework (REF) in 2014:
Professorship of Politics in the Department
of Politics and International Studies;
Professorship of Information Engineering
in the Department of Engineering;
Professorship of Genetics in the Department
of Genetics.
9. Human Resources
9.1 The Human Resources Committee reports jointly
to the Council and the General Board. The major
items of business considered by the Board were
as follows:
9.2 In response to the governments announcement
of the abolition of the national retirement
age with eect from 6 April 2011, the Human
Resources Committee nalized a Report for
Council and the General Board. A Discussion
was followed by a vote, in which the proposal
for an Employer Justied Retirement Age
for established Ocers only (at age 67) was
accepted. A new Retirement Policy has now been
implemented.
9.3 The University and Assistants Joint Board (UAJB)
on 8 May 2012 approved the recommendations
arising from the Special Joint Negotiating
Committee on revisions to the Cambridge
University Contributory Pension Scheme (CPS).
This followed the formal sta consultation
which took place between 5 August 2011 and
11 November 2011. The CPS Trustees were also
consulted in parallel. The nal revisions were
endorsed by the Board (and subsequently
the Council and the Regent House, following
approval of Grace 1 of 24 October 2012).
9.4 The Human Resources Committee consulted
widely to develop equality objectives, a
requirement of the Equality Act 2010. These
reected priority areas that will be progressed
over the next four years, including seeking to
improve the Universitys gender balance at
senior levels of the organization, and continuing
to provide an inclusive environment for work
and study. The draft objectives were published
in April 2012 and formally adopted in July. In
addition, the Universitys Combined Equality
Scheme was updated in January 2012 to reect
the Equality Act. It emphasizes the Universitys
commitment to fair and equal treatment for all
legally protected groups.
9.5 The Board considered and approved the
proposed revisions to the Statute U, Grievance
Procedure, subject to further work also being
carried out on the Disciplinary Procedure.
Following Discussion in the Regent House an
amended Grace was approved on 27 July 2012.
9.6 The Board had previously set up a Working
Group to review the Senior Academic
Promotion process. A number of minor changes,
recommended by the Group, were implemented
for the 2012 Senior Academic Promotions
exercise. During the course of this year a
revised scoring methodology was approved
for implementation in the 2013 round together
with some modications to the arrangements
for Faculty Promotions Committees, which
were the subject of a Report (Reporter, 6266,
201112, p. 606).
9.7 The Human Resources Committee set up a sub-
committee, chaired by the Pro-Vice-Chancellor
(Institutional Aairs), to review aspects of Pay
and Reward since the adoption of the current pay
and reward provisions and the single salary spine
in 2006. There have, in the intervening period,
been signicant changes in the external market
employment conditions for both academic and
academic-related sta which are impacting on
the Universitys capacity to recruit and retain
senior sta. The sub-committee concluded its
work in the summer and its proposals will be the
subject of consultation in the University in the
9.8 In addition, the Human Resources Committee has
continued to update its policies, for example the
draft probation policy, and work has commenced
to review the disciplinary procedures for
unestablished sta and changes have been
made to the arrangements for paying and issuing
agreements to casual workers.
9.9 The Board congratulated twenty-two academic
sta who were elected to Fellowships of the
British Academy (four), the Royal Society (six), the
Academy of Medical Sciences (seven), and the
Royal Academy of Engineering (ve).
10. Health and safety
10.1 The established and embedded management
systems for health and safety in the University,
overseen by the Health and Safety Executive
Committee, have continued to provide a well
regulated environment in support of the core
activities of teaching and research together with
oversight of the broader scope of all University
operations. This is achieved by a commitment
at the highest level of University governance to
the support of those parts of the UAS involved
in health and safety management, senior
management membership, and attendance
at both the Consultative Committee for
Safety (CCFS) and Health and Safety Executive
Committee (HSEC) and sub-committees,
combined with the positive, proactive stance
taken by Departments in managing the safety
of their sta, students, and buildings with the
support of the Occupational Health and Safety
Service (OHSS) and Estate Management (EM).
10.2 Heads of Departments are made aware of
their responsibility for ensuring eective
health and safety management together with
updates in policy and legislation through yearly
brieng sessions, targeted letters and email
communications, and one-to-one meetings with
the Director of Health and Safety when necessary.
The University continues to assure itself of the
eectiveness of these management systems
through its auditing programme, which covers
general safety audits and subject-specic audits
for radioactivity, lasers, chemicals, hazardous
waste management, biological agents, laboratory
security, and re risk assessment. Summaries of
the outcomes of these audits are presented to
HSEC for members to consider further actions
by Departments should they feel that issues
have not been resolved adequately in the rst
instance.
10.3 Certain aspects of safety management within
the UAS have been restructured, including
the incorporation of re safety training and
auditing into the OHSS, the outsourcing of food
safety inspection and audit linked to a central
purchasing agreement with approved caterers,
and the relocation of the Occupational Health
Service adjacent to the Safety Oce at a central
site oering improved access for all sta and
students.
10.4 The Executive Committee continues to monitor
the changes in UK health and safety regulation
in response to the recent government reviews
to ensure that our policies and procedures
eectively manage health and safety risk without
unnecessary restriction or overly bureaucratic
systems.
28 November 2012
L. K. Borysiewicz, Vice-Chancellor
Philip Allmendinger
N. Bampos
H. A. Chase
Sarah Coakley
Martin Daunton
Simon Franklin
C. A. Gilligan
David Good
Robert Kennicutt
Patrick Maxwell
Sadie Jarrett
Rachael Padman
John Rallison
Amanda Talhat
Reports and Financial Statements
for the year ended 31 July 2012
Preliminary
The commentary that follows is intended to give the readers of the nancial statements an overview
of the nances and operations of the University group including Cambridge Assessment and
Cambridge University Press. It should be read in conjunction with the Annual Report of the Council
and the Annual Report of the General Board to the Council for the academical year 201112,
which are published alongside these nancial statements. The nancial position of the teaching
and research activities of the University may be seen more clearly in the Financial Management
Information published in the Reporter. Further detailed information about the nances and
operations of Cambridge Assessment and Cambridge University Press is given in the annual
reports of those entities which are also published.
Scope of the Financial Statements
The consolidated fnancial statements cover the teaching and research activities of the University,
its subsidiary companies which undertake activities which for legal or commercial reasons are more
appropriately carried out by limited companies, Cambridge Assessment and Cambridge University Press
and their subsidiary companies and joint ventures, the Gates Cambridge Trust, and certain other Trusts
(the Associated Trusts).
Cambridge Assessment and Cambridge University Press are constituent parts of the corporation known
as the Chancellor, Masters, and Scholars of the University of Cambridge. Cambridge Assessments
primary work is the conduct and administration of examinations in schools and for persons who are
not members of the University. Cambridge University Press is the publishing house of the University
dedicated to publishing for the advancement of knowledge, education, and learning worldwide.
The Gates Cambridge Trust and the Associated Trusts are separately constituted charities. They are
deemed to be subsidiary undertakings of the University since the University appoints the majority of
the trustees of each Trust. The purposes of the Gates Cambridge Trust and the Associated Trusts are to
support the University by enabling persons from outside the United Kingdom to beneft from education
in the University by the provision of scholarships and grants and otherwise.
Mission
The mission of the University of Cambridge is to contribute to society through the pursuit of
education, learning, and research at the highest international levels of excellence.
Its principal activities are teaching and learning, research, stewardship of collections and ancient
buildings, and the activities of Cambridge Assessment and Cambridge University Press.
Financial Review
Financial Review
Funding
The sources of income of the University are:
The government, which through the Higher Education Funding Council for England (HEFCE)
provides a block grant for teaching and a grant determined by the quality and volume of
research through the Research Assessment Exercise last carried out in 2008;
Students through fees charged for instruction and facilities;
Research income from publicly funded Research Councils, charitable foundations, and through
collaborations with the private sector;
Benefactions and donations for current use;
Investment income from our accumulated endowment and other assets;
Income from services provided to external customers, including the customers of Cambridge
Assessment and Cambridge University Press;
A small but increasing income from commercialization of intellectual property.
Accounting for endowment and investment income
The main investment pool generating endowment and investment income is the Cambridge
University Endowment Fund (CUEF). The CUEF is managed on a total return basis, such that the
amount distributed for budgetary expenditure is determined by a formula which has regard to the
total return reasonably to be expected in the long term. The CUEFs portfolio is largely invested
indirectly through fund managers with this approach intended to maximize total investment
return. A substantial proportion of the CUEFs current investments yield little or no income in the
form of dividends, interest, and rents. In the year ended 31 July 2012, distributions by the CUEF
exceeded the income received from its underlying investments by 54m (2011: 48m), the balance
of the distributions being funded by drawing on long-term capital growth.
In these nancial statements total endowment and investment income includes the income
from CUEFs underlying investments rather than the distributions made by the CUEF. The impact
is that endowment and investment income is 54m less than it would have been had it been
based on distribution, with a corresponding increase in capital gains (reected in the statement
of recognized gains and losses). For the individual trust funds and other endowment funds which
have invested capital in the CUEF the full distribution remains available as income.
Financial Review
Financial performance for the year
The consolidated results for the year ended 31 July 2012 are summarized in Table 1.
Table 1 2011-12 2010-11 Change
Consolidated results Restated
m m %
Income 1,322 1,251 +5.6%
Expenditure (1,317) (1,261) +4.5%
(Decit) / surplus on continuing operations 5 (10)
Minority interests (1) -
Transfer from restricted endowments 44 43
Surplus for the year retained within general reserves 48 33
Net assets 2,641 2,590 +2.0%
Corresponding gures including the element of CUEF distributions funded out of long-term
capital growth, as explained above, are:
2011-12 2010-11
m m
Income 1,376 1,299
Surplus for the year retained within general reserves 70 51
This consolidated position is built up from the Universitys three main segments: its core
academic activities and the assessment and publishing activities carried out by Cambridge
Assessment and Cambridge University Press respectively. Within the Group there are a number
of intra-group transactions, principally the nancial and other support for the Universitys
academic activities made by both Cambridge Assessment and the Press. Table 2 gives
segmental information.
Financial Review
Table 2
Surplus / (decit) on continuing operations
Income Expenditure
Surplus /
(decit)
m m m
Results by segment Education and research 799 822 (23)
Cambridge Assessment 309 280 29
Cambridge University Press 247 250 (3)
Financial support to the University from Cambridge Assessment (33) (33) -
Pension scheme and other adjustments - (2) 2
1,322 1,317 5
The education and research activities of the University Group were in decit for the year, after
accounting for investment income as described above. The recurrent and special grants from
HEFCE reduced by 5m as cuts in government funding impacted. Fees and support grants
increased by 22m, of which 14m related to studentships funded by Research Councils, now
included as the Universitys income as explained more fully in Note 2 to the Accounts. Research
grants and contracts income increased by 20m, a little over 3%, but within this, revenue
from Research Councils remained at with the increase primarily from charity and European
Commission sources. Despite the overall increase in sponsored research income, recovery of the
indirect costs of research remained broadly level, reecting the lower contribution made by those
categories of sponsor.
Cambridge Assessment is the Universitys international exams group. Its mission is to promote
educational excellence. It pursues this by researching, developing, and delivering qualications
in around 160 countries. Cambridge Assessment oers these qualications through three exam
boards: Oxford Cambridge and RSA Examinations (OCR), Cambridge International Examinations
(CIE), and University of Cambridge ESOL Examinations (English for Speakers of Other Languages).
Income from its examination and assessment services was 300m in the year, an increase of
13% over 201011. The international businesses of English language testing and of international
examinations were particularly strong, with the IELTS qualication being notably successful.
Cambridge Assessment transferred 32.6m during the year in support of the Universitys teaching
and research activities.
The Cambridge University Press is the Universitys publishing arm. Its mission is to further through
publication the Universitys objective of advancing learning, knowledge, and research worldwide.
The Press is organized into two main streams: academic publishing of books and journals, and
English language teaching materials and educational publishing. Revenues from publishing and
printing services increased 6.2% over 201112 to 241m. The Press has a growing programme
of digital product in academic books and journals, and has expanded its collaboration with
Cambridge Assessment in English language materials and testing.
Financial Review
Change in nancial position
Table 3 below gives the movement in net assets showing the capital ows into the Group, analyzed
into its three main segments, and the impact of changes in the values of investment assets.
Table 3
Movement in net assets
Education
and
research
Cambridge
Assessment
Cambridge
University
Press
University
Assistants
Pension
scheme Total
m m m m m
Net assets at 31 July 2011 2,516 265 37 (228) 2,590
Surplus / (decit) on continuing operations (23) 29 (3) 2 5
Minority interests - - (1) - (1)
Currency adjustments - - (1) - (1)
New endowment capital 43 - - - 43
External funding for capital expenditure 5 - - - 5
Actuarial loss on retirement benets - - (26) (40) (66)
Increase in investment values 66 - - - 66
Net assets at 31 July 2012 2,607 294 6 (266) 2,641
Inows to the endowment from benefactions and donations, increases in investment values,
more than oset increased decits on the Universitys pension schemes as accounted for on an
FRS 17 basis.
Capital expenditure programme
The University continues its investment in refreshing, renewing, and expanding its academic
estate and equipment and in the physical and technical facilities for Cambridge Assessment
and Cambridge University Press.
In recent years, major capital expenditure projects, mainly new buildings, have been funded from
a combination of sources, principally government funding through HEFCE and external donations.
Equipment has been funded by a combination of sources including HEFCE, research grant
sponsors, and from operating cash ows. The capital funding stream from HEFCE has been reduced
substantially. The ability to continue investing in the Universitys operational buildings is essential
if it is to remain globally competitive. The Universitys capital planning framework schedules
buildings and large equipment purchases over a planning period of up to 20 years to match
academic priorities and to take account of inter-dependencies between projects. Cambridge
Assessment and the Press similarly propose capital expenditure on oce and logistics buildings,
and in enhanced business systems.
Financial Review
Over the year the Universitys total capital expenditure was 95m (of which 64m was in respect
of the Universitys academic activities), including equipment expenditure of 25m. In addition,
6m of heritage assets were acquired, 5m by donation. Major items of expenditure are set out in
Table 4, and include the new Materials Science building being constructed on the West Cambridge
site, and completion of the Alison Richard Building; other investment was made over a number of
projects across the Universitys main sites, and expenditure, primarily on systems and equipment,
by Cambridge Assessment and Cambridge University Press.
Table 4
m
New Materials Science building 16
Alison Richard Building 4
Other new build 24
Extension / improvements 6
Refurbishment 2
Total academic estate buildings 52
Equipment for academic purposes 14
Cambridge Assessment total 17
Cambridge University Press total 12
95
Heritage assets 6
101

There are currently several major projects at various stages of implementation representing a
signicant capital investment: completion of the building for Materials Science and Metallurgy;
a new building for Chemical Engineering and Biotechnology; the new Sports Centre; the proposed
Data Centre (all these on the West Cambridge site); the conversion of the Arup Building for the
Cambridge Conservation Initiative; and the development of facilities for Student Services.
Endowment and other investments
The University Groups investment assets are signicant. Although investment income provides
only a small percentage of the operating budget of the Universitys academic activities, it supports
posts and activities and gives important nancial assistance to students. The investment assets are
managed in three principal pools:
(i) Cambridge University Endowment Fund (CUEF)
The majority of xed asset investments and endowment assets are held in the CUEF, which
is managed by the Universitys Investment Oce with the advice and oversight of the
Investment Board. The CUEF is managed on a total return basis with a long-term investment
objective of RPI plus 5.25%. The amount distributed for budgetary expenditure is determined
Financial Review
by a formula based on underlying capital values combined with factors which smooth the rate
of spending changes from year to year, allowing a degree of certainty for planning purposes.
Colleges and other charities linked with the University are permitted to invest in the CUEF, to
gain from its scale, diversication, and professional management. The Gates Cambridge Trust
and the Associated Trusts are substantially invested in the CUEF, and a number of Colleges
have made investments.
As at 31 July 2012 the CUEF had a market value of 1,651m (2011: 1,550m) of which 46m
was invested by Colleges. The increase was a result of investment performance and new funds
invested during the year less the amounts distributed for spend on operations.
The investment performance of the CUEF is monitored to 30 June year-end. The CUEF gained
1.2% in the year to June 2012, a return below the funds long-term objective but above that of
broad equity markets (the MSCI AC World index in sterling fell 4.3%). Its investment managers
within the funds two largest asset classes, public equity and absolute return, materially
outperformed their sector benchmarks. By contrast, the CUEFs lack of exposure to the very
low-yielding gilts markets served as a drag on performance.
Over the period the US was the most buoyant region. Consumer staples was the best
performing sector, attractive to investors in the highly uncertain macroeconomic environment
on the basis of its defensive character and stable cash ow generation. By contrast cyclical
sectors such as nancials, materials, and energy suered. The CUEFs equity allocations were
well positioned for these relative movements.
The CUEF operates an evolving asset allocation and the proposed changes over the following
twelve months are revised quarterly in discussion with the Investment Board. Over the year,
the funds broad asset allocation was not changed materially, but there was a measured
increase in investment in less liquid credit markets. As at 30 June 2012, the actual asset
allocation was global equities 60%, private investments 7%, absolute return including hedge
funds 15%, credit 5%, real assets including property 11%, and xed income including cash 2%.
At the end of the year the exposure to assets denominated in sterling was 49%.
(ii) Money market investments
The majority of the University and Group current asset investments are invested in the deposit
pool. This pool is managed by the Finance Division according to guidelines on diversication,
exposure, and credit quality agreed by the Finance Committee and subject to external advice. The
investments are principally short-term deposits with banks and similar institutions.
(iii) Other investment assets
Some long-term investments are held outside the CUEF including certain investment properties in
Cambridge, other securities, and equity investments in spin-out companies.
Financial Review
Sta costs and pensions
Sta cost increased by a modest 1.4% over the previous year and made up 47% of the University
Groups total operating expenditure and 57% in respect of the Universitys teaching and research
activities. There was pay restraint in the challenging and uncertain economic conditions and the
2011 voluntary severance scheme has resulted in savings. The sta costs of Cambridge Assessment
and Cambridge University Press again increased slightly in line with business growth.
The costs and risks of the pension schemes to which the University is exposed remain of concern.
The Universities Superannuation Scheme (USS) is a very large multi-employer scheme. The triennial
valuation as at 31 March 2011 showed a material decit of 2.9 billion, a funding level of 92%,
which the scheme actuary estimated had increased as at 31 March 2012 to a decit of 9.8 billion,
a funding level of 77%. The decit of the USS is not reected in the Universitys balance sheet but
is a major exposure for the University. Changes have been introduced by the USS in benets in
respect of future service in order to make the scheme aordable and sustainable. The Universitys
contribution to the USS continues at 16% of pensionable pay.
The University Group has three other major schemes: the Cambridge University Assistants
Contributory Pension Scheme (CPS) for assistant sta of the teaching and research activities of
the University, and two schemes for sta of the Cambridge University Press. The CPS is a dened
benet scheme open to new joiners and for future accrual. The University is making decit-
recovery contributions to the scheme of 14.6m per annum for fourteen years commencing
August 2011. To ensure that the CPS remains aordable and sustainable changes to future service
benets will take eect from 1 January 2013 in order to reduce risk and cost to the University. The
CPS will nevertheless remain an attractive benet to sta. The Cambridge University Press dened
benet schemes are closed to new joiners and are subject to recovery plan payments currently at
5.9m p.a. increasing in steps to 7.6m in 2022.
The CPS and the Presss schemes, being single-employer schemes, are included in the nancial
statements following Financial Reporting Standard 17 (FRS 17). The total pension liability under
FRS 17 has increased from 308m to 369m, of which 95m relates to the Presss schemes.
Development and alumni relations
The Cambridge 800th Anniversary Campaign was brought to a close in 2011 having raised a total
of 1.172 billion across the University and Colleges. The University is currently considering the
form, themes, and priorities of a new Campaign. In the course of 201112 43m (2011: 49m)
was raised in new endowment capital, with a further 14m (2011: 16m) received as unrestricted
donations.
The benets of philanthropy are long term, strengthening Cambridges nancial security for
posterity at a time of intensifying global competition and uncertainty. The University is committed
to continued investment in fundraising and in building close relationships with its alumni and
supporters internationally.
Financial Review
North West Cambridge
The University plans to develop its site at North West Cambridge, currently comprising primarily
agricultural land. The proposals include site infrastructure and landscaping, University housing for
letting to sta, market housing for sale and let, supermarket and retail units, and further sites for
research. This will contribute to the strategic need to provide aordable and high quality housing
for post-doctoral research sta and others at the beginning of their careers with the University.
The development will add to the long-term strategy of the University in allowing further expansion
of academic activities. The market housing, which will number 1,500 units, and retail and
commercial developments contribute signicantly to the viability of the development.
The University considers there is a strong strategic case for proceeding with the development and
is satised that the project is viable and that the projected capital investment required is aordable
and will not impair the Universitys ability to continue to invest appropriately in academic budgets
and capital. Subject to receiving the approval of the Regent House, the University expects to
proceed with the rst phase of the development in 2013. The rst phase includes around 530
units for rental to qualifying sta on a subsidized basis, 300 units of postgraduate student
accommodation, and some 700 units for sale on a market basis by residential developers under
land sale agreements. This rst phase is expected to involve a peak investment of approximately
250m by 2015.
Bond issue
Subsequent to the 201112 year-end, on 17 October 2012 the University issued 350m of 3.75%
unsecured bonds due October 2052. The bonds are listed on the London Stock Exchange. The
proceeds of issue, less directly attributable transaction costs, amounted to 342m, and are for
general corporate purposes, including investment in research facilities, accommodation, and other
assets. The bonds proved attractive to investors and were almost four times oversubscribed, with
pricing at 0.60% over the underlying reference government treasury stock.
In preparation for the issue the University sought a rating from Moodys Investor Services, which
assigned an Aaa (stable) rating to the University. Moodys noted that its assessment took account
of the Universitys outstanding market position, signicant amount of liquid assets, and strong
governance structure. It also took into account the expected increase in the Universitys debt-to-
revenue ratio.
Financial Review
The nancial outlook
The recurrent grants from HEFCE remain a core part of the Universitys income. Funding for
undergraduate teaching will reduce substantially from the current year but will be oset by a
corresponding increase in home student tuition fees. Undergraduate numbers will remain broadly
constant whilst graduate numbers are expected to continue to follow the historic trend of around
2% growth per annum. This, in conjunction with a continuing revision of our postgraduate fees,
should provide a steady increase in funding. The HEFCE recurrent grant for research has been
maintained broadly level but there are increasing challenges in replacing its capital funding stream
which has been reduced signicantly.
Cambridge University Press continues to nd its markets dicult, but remains broadly on track
to increase its turnover and its surplus, so that it remains in a good position to continue to invest
for the future. Cambridge Assessment is subject to increased regulatory scrutiny and costs in the
United Kingdom, but its overseas activities, notably English language testing, are expected to
continue to ourish. The business will be impacted by considerable investment in systems over the
coming years.
Endowment returns reverted to a more muted, but still positive, level after the strong returns of
the previous two years, and the average return over the tumultuous ten years to 31 July 2012 was
7.9%. However, the continued low interest rates and global economic uncertainties make the
future long-term returns at the target levels challenging.
Principal risks and uncertainties aecting the long-term nancial position
The principal risks the University must address do not change: its long-term ability to maintain
and develop its research funding, to attract the best sta and students, and to maintain and renew
its physical facilities. The activities of Cambridge Assessment and the Press are subject to the
pressures of international competition, and they must balance the need to generate sucient net
income to ensure that they thrive with the need to support the Universitys core academic activities
whenever possible.
The key nancial uncertainties and risks are:
The possibility of further cuts to government support for teaching and research;
The outcome of the Research Evaluation Framework exercise in 2014, which will have a major
impact on the Universitys research funding;
The impact of government policy on immigration, afecting both students and staf;
Funding by charities and foundations of sponsored research, and their unwillingness to
cover the full costs, and an increase in EC-sponsored research also at a level below full
economic costs;
Movements in investment markets reducing the value of the endowment and other
investment assets;
Increasing and uncertain costs of pension provision;
Financial Review
Pay infation, against a background of pay restraint in recent years;
The ability to continue to invest in physical facilities, against a background of reduced
government and research council capital funding;
The support by benefactors for endowment, capital expenditure, and for current use;
The economic success of Cambridge Assessment and the Press, which operate in
challenging international markets. Cambridge Assessment provides an increasingly
important source of unrestricted funding for the University.
In summary
The University Groups nancial operating performance was a little ahead of break-even and a
small surplus (in the context of the Universitys size) was retained in general reserves for future
investment. Cambridge Assessments operating performance was again at a signicant surplus.
Operating cash ows were strong and additional capital inows, investment performance, and
operating surplus, oset by worsening pension decits, resulted in a small gain in net assets to
2.6 billion.
The University welcomes the armation of its nancial soundness and governance and
management systems evidenced by its Aaa rating, and overall the prospects do appear to be
improving. The main uncertainties in government funding have now been resolved, although
the next Comprehensive Spending Review will be critical. The new fee regime has been absorbed
satisfactorily, the mix of research sponsors is changing as alternative funding sources are secured.
Cambridge Assessment continues its strong performance. Costs have been tightly controlled and
must remain so.
The University is one of the worlds leading academic institutions and has a reputation for
outstanding academic achievement. This reputation has been built up over a long time and
is an important factor in attracting the best academic sta and the best students.
Maintaining the nancial ability to continue to attract and retain the best sta and to provide
research and teaching facilities commensurate with our standing as one of the worlds leading
universities remains an ongoing challenge. The recent bond issue will provide much needed
exibility in nancing our strategic investments, especially the proposed North West Cambridge
development and a number of other urgent infrastructure projects. In the longer term, we must
continue to build and diversify our income streams especially from endowments and
philanthropy generally.
Professor Steve Young
Senior Pro-Vice-Chancellor
1. The following statement is provided by the Council to enable readers of the nancial
statements to obtain a better understanding of the arrangements in the University for the
management of its resources and for audit.
2. The University endeavors to conduct its business in accordance with the seven principles
identied by the Committee on Standards in Public Life (selessness, integrity, objectivity,
accountability, openness, honesty, and leadership) and within the general principles of the
Guidance to Universities which has been provided by the Committee of University Chairmen
and its Guide for Members of Governing Bodies of Universities and Colleges in England,
Wales and Northern Ireland. Further information is given at paragraph 9 below.
Under the Statutes, the Governing Body of the University is the Regent House which
comprises the resident senior members of the University and the Colleges, together with
the Chancellor, the High Steward, the Deputy High Steward, and the Commissary. Subject to
the Regent House, the Council of the University is the principal executive and policy-making
body of the University, with general responsibility for the administration of the University,
for the planning of its work, and for the management of its resources. The membership of
the Council includes four external members, one of whom chairs the Audit Committee (see
paragraph 7 below). The Statutes provide for the appointment of a Deputy Chairman of the
Council, normally one of the external members, to take the chair as necessary or when it
would be inappropriate for the Vice-Chancellor to do so, in particular in relation to the Vice-
Chancellors own accountability. The General Board of the Faculties is responsible, subject to
the Regent House and to the responsibilities of the Council, for the academic and educational
policy of the University.
3. The University is an exempt charity and is subject to regulation by the Higher Education
Funding Council for England. The members of the University Council are the charity trustees
and are responsible for ensuring compliance with charity law.
4. The Council is advised in carrying out its duties by a number of Committees, including the
Planning and Resources Committee, the Finance Committee, the Audit Committee, the
Remuneration Committee, the Investment Board, and the Risk Steering Committee. The
Planning and Resources Committee is a joint committee of the Council and the General
Board. Its responsibilities include the development and oversight of the Universitys Strategic
Plan, and the preparation of the Universitys budget. The Finance Committee is chaired by
the Vice-Chancellor and advises the Council on the management of the Universitys assets,
including real property, monies, and securities, and on the care and maintenance of all
University sites and buildings. The Audit Committee governs the work of the Internal and
External Auditors, reporting on these matters directly to the Council. The Remuneration
Committee is chaired by an external member of Council and advises the Council on the
remuneration of senior sta in the University. The Investment Board, which has a majority of
external members, advises the Council on the management of the Universitys investment
assets. The Risk Steering Committee is responsible to the Council for the identication of the
major corporate risks and their management.
Corporate Governance
Corporate Governance
5. The Vice-Chancellor is, de facto, the principal ocer of the University. Under the terms of the
Financial Memorandum between the University and the Higher Education Funding Council for
England the Vice-Chancellor is the Accountable Ocer of the University.
6. Under the Statutes, it is the duty of the Council to exercise general supervision over the nances
of all institutions in the University other than the University Press (which is governed by the
Council and the Press Syndicate through separate statutory arrangements); to keep under review
the Universitys nancial position and to make a report thereon to the University at least once in
each year; to recommend bankers for appointment by the Regent House; to prepare and publish
the annual accounts of the University in accordance with UK applicable accounting standards
such that the accounts give a true and fair view of the state of aairs of the University.
7. It is the duty of the Audit Committee to keep under review the eectiveness of the Universitys
internal systems of nancial and other controls; to advise the Council on the appointment of
external and internal auditors; to consider reports submitted by the auditors, both external and
internal; to monitor the implementation of recommendations made by the internal auditors;
to satisfy themselves that satisfactory arrangements are adopted throughout the University
for promoting economy, eciency, and eectiveness; to establish appropriate performance
measures and to monitor the eectiveness of external and internal audit; to make an annual
report to the Council, the Vice-Chancellor, and the Higher Education Funding Council for
England; to receive reports from the National Audit Oce and the Higher Education Funding
Council for England. Membership of the Audit Committee includes as a majority ve external
members (including the chair of the Committee), appointed by the Council with regard to their
professional expertise and experience in comparable roles in corporate life.
8. There are Registers of Interests of Members of the Council, the General Board, the Finance
Committee, and the Audit Committee, and of the senior administrative ocers. Declarations
of interest are made systematically at meetings.
9. The University is a self-governing community whose members act in accordance with the seven
principles of public life (see paragraph 2 above) and in pursuit of the objectives and purposes
of the University as set out in its Statutes. The University complies with most but not all of the
voluntary Governance Code of Practice published in November 2004 by the Committee of
University Chairmen. In particular the Vice-Chancellor is chair of the Council, which does not
have a majority of external members, and the Council is subject to the statutory authority of the
Regent House. The University has no immediate plans to change these arrangements, which have
proved reliable over many years in enabling the University to achieve its academic objectives.
The Chancellor
Lord Sainsbury of Turville
The Vice-Chancellor
Professor Sir Leszek Borysiewicz
Elected as Heads of Colleges
Sir Christopher Hum
Professor A. David Yates
Professor Francis Kelly
Professor Robert Lethbridge
Elected as Professors or Readers
Professor David Abulaa
Professor Dame Athene Donald
Professor Nicholas Gay
Professor Andrew Hopper
Elected as members of the Regent House
Dr Richard Barnes
Mr Robert Dowling
Dr David Good
Dr Rachael Padman
Dr Nick Bampos
Dr Stephen Cowley
Mr Ian Du Quesnay
Dr Susan Oosthuizen

Student members 201112
(to 30 June 2012)
Mr Thomas Parry-Jones
Mr Gerard Tully
Mr Morgan Wild
(from 1 July 2012)
Mr Charles Bell
Ms Rosalyn Old
Mr Sam Wakeford
Members in class (e) (external members)
Dr Vanessa Lawrence
Dame Mavis McDonald (Deputy Chair)
Mr Dominic Casserley
Mr John Shakeshaft
The Chancellor, external members, student members, Sir Christopher Hum, Professor Lethbridge,
Professor Yates, and Mr Du Quesnay are not employees of the University. Professor Lethbridge is
an employee of the Gates Cambridge Trust, a subsidiary undertaking. The other members of the
Council are employees of the University. No member of the Council receives payment for serving
as a member of the Council.
Members of the Council and the charity trustees during
the year ended 31 July 2012
The University is an exempt charity subject to regulation by the HEFCE under the Charities Act
2006. The University reports annually on the ways in which it has delivered charitable purposes
for the public benet.
The Council, in reviewing the Universitys activities in this regard, has taken into account the
Charity Commissions guidance on public benet. The Council is satised that the activities of the
University as described in these Reports and Financial Statements, and in the Annual Report of
the Council, fully meet the public benet requirements.
The Mission of the University
The Mission of the University is to contribute to society through the pursuit of education, learning
and research at the highest international levels of excellence. The University makes a signicant
contribution, through these activities, directly and most obviously to the advancement of
education, research, and dissemination of knowledge.
Research
The University is widely recognized as one of the leading research universities in the world both
in terms of quality and in terms of scope and breadth. Research is undertaken at the highest level
across a wide range of areas. The University takes seriously its obligations to disseminate and make
publicly accessible the outcomes of its academic research activities through publication, teaching,
conferences, consultancy, and other knowledge transfer and outreach activities. It therefore oers
public benet through the continued advancement of knowledge across the sciences, medicine,
arts, humanities, culture, and heritage.
A substantial proportion of the research undertaken in the University across the elds of clinical
medicine, biomedicine, physics of medicine, and engineering leads directly to the advancement
of health and the saving of lives. Research is also carried out in the area of sustainability,
environmental protection, and improvement.
Research work in the University is focussed at local, national, and international levels. The products
of this research have a wide-ranging inuence through the advancement of understanding and
its application in scientic and technological advances, and through informing public debate on
policy. The impact of the Universitys research extends to governments, public sector bodies, and
charities.
Statement of Public Benet
Statement of Public Benet
Education
The Universitys research activities feed directly into its teaching at every level. Around 18,000
students, of whom 12,000 are undergraduates, pursue courses across a wide range of disciplines.
The quality of the education (and, as importantly, the educational experience) which the University
provides is consistently recognized by the Universitys status at or near the top of national and
international rankings.
The University is committed to admitting students of the highest intellectual potential,
irrespective of social, racial, religious, nancial, or other considerations. The University ensures
that individuals from all backgrounds can benet from the opportunities aorded by a rst-rate
education and are not unreasonably excluded from those opportunities by the charging of fees.
The University ensures that bursaries are available where necessary and outreach activities are
undertaken to improve participation by under-represented groups. Financial support is provided
to students from overseas through University funds and by trusts associated with the University.
Further information is available at: http://www.admin.cam.ac.uk/univ/cambridgebursary/ and
http://www.admin.cam.ac.uk/oces/gradstud/fees/funding/new.html.
The University is aware that there are signicant variations in the educational opportunities,
information, and support available to individuals. It therefore invests signicant resource and eort
into its access and widening participation activities. The University encourages applications from
people with disabilities and from mature students.
For the wider community a broad range of lectures, seminars, and courses provide the opportunity
for members of the wider public to share in the Universitys educational provision. The Universitys
Institute of Continuing Education oers short non-credit courses, residential and summer schools.
The University is committed to equipping those who participate in its educational programmes
with the highest quality of teaching and pastoral, infrastructural, and academic support. It
is fundamental to the Universitys mission that its students are personally, academically, and
professionally equipped to contribute positively to society. In this regard, the quality and depth of
their student experience benets them directly but also benets the societies to which they will
contribute, through their participation in the workforce and as informed and questioning citizens.
The wider applications of the Universitys commitment
to disseminating knowledge
The Universitys publishing house, the Cambridge University Press, contributes to the Universitys
commitment to make publicly accessible the outcomes of academic research activities in
Cambridge and from across the world by publishing peer-reviewed academic material and other
educational publications. Through Cambridge Assessment the University develops and delivers a
range of widely used and respected examinations, beneting the UK and world-wide community
by oering internationally recognized qualications, raising aspirations, and transforming lives.
1. The Council is responsible for maintaining a sound system of internal control that supports
the achievement of policies, aims, and objectives, while safeguarding the public and other
funds and assets for which the Council is responsible, in accordance with the Statutes and
Ordinances and the Financial Memorandum with the HEFCE.
2. The system of internal control is designed to manage rather than eliminate the risk of failure
to achieve policies, aims, and objectives; it therefore provides reasonable but not absolute
assurance of eectiveness.
3. The system of internal control is 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 eciently, eectively, and economically. This process was in place for the year
ended 31 July 2012 and up to the date of approval of the nancial statements, and accords
with HEFCE guidance.
4. The Council is responsible for reviewing the eectiveness of the system of internal control.
The following processes have been established:
(a) The Council meets eleven times throughout the year to consider the plans and strategic
direction of the University.
(b) The Council receives periodic reports from the Chairman of the Audit Committee
concerning internal control and the minutes of all meetings of the Audit Committee.
(c) The Councils Risk Steering Committee oversees risk management. The Council receives
periodic reports from the Chairman of the Risk Steering Committee and the minutes of
all meetings of the Risk Steering Committee.
(d) The Audit Committee receives regular reports from the internal auditors, which
include the internal auditors independent opinion on the adequacy and eectiveness
of the Universitys system of internal control and risk management, together with
recommendations for improvement. Risk management is a standing item on the Audit
Committee agenda.
(e) The University provides information (primarily through web-based resources) to those
who own or manage central or School risks.
(f ) A system of indicators has been developed for the Universitys key risks.
(g) A robust risk prioritization methodology based on risk ranking and cost-benet analysis
has been established.
The Councils review of the eectiveness of the system of internal control is informed by the work
of the internal auditors, Deloitte LLP.
5. The Councils review of the eectiveness of the system of internal control is also informed
by the work of the senior ocers and the risk owners within the University, who have
responsibility for the development and maintenance of the internal control framework, and
by comments made by the external auditors in their management letter and other reports.
Statement of internal control
1. Under the Universitys Statutes it is the duty of the Council to prepare and to publish the
annual accounts of the University in accordance with UK applicable accounting standards
such that the accounts give a true and fair view of the state of aairs of the University.
2. The Council is responsible for keeping proper accounting records which disclose with
reasonable accuracy at any time the nancial position of the University.
3. In preparing the nancial statements the Council is required to:
(a) select suitable accounting policies and then apply them consistently;
(b) make judgements and estimates that are reasonable and prudent;
(c) state whether applicable accounting standards have been followed;
(d) prepare the nancial statements on a going concern basis unless it is inappropriate
to presume that the University will continue to operate;
(e) ensure that income has been applied in accordance with the Universitys Statutes and
Ordinances, and its Financial Memorandum with the HEFCE and the funding Agreement
with the Teaching Agency (formerly the Training and Development Agency for Schools);
and
(f ) safeguard the assets of the University and take reasonable steps to prevent and detect
fraud and other irregularities.
Statement of the responsibilities of the Council
We have audited the Group and University nancial statements (the nancial statements) of
the University of Cambridge for the year ended 31 July 2012 which comprise the Consolidated
income and expenditure account, the note of consolidated historical cost result, the Consolidated
statement of total recognised gains and losses, the Group and University balance sheets, the
Consolidated cash ow statement, the Statement of principal accounting policies, and the related
notes. The nancial reporting framework that has been applied in their preparation is applicable
law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting
Practice).
Respective responsibilities of the Council and auditors
As explained more fully in the Statement of the Responsibilities of the Council set out on page 43
the Council is responsible for the preparation of the nancial statements and for being satised
that they give a true and fair view. Our responsibility is to audit and express an opinion on the
nancial statements in accordance with applicable law and International Standards on Auditing
(UK and Ireland). Those standards require us to comply with the Auditing Practices Boards Ethical
Standards for Auditors.
This report, including the opinions, has been prepared for and only for the Council as a body in
accordance with the Statutes and Ordinances of the University and for no other purpose. We do
not, in giving these opinions, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it may come save where expressly
agreed by our prior consent in writing.
Scope of the audit of the nancial statements
An audit involves obtaining evidence about the amounts and disclosures in the nancial
statements sucient to give reasonable assurance that the nancial statements are free from
material misstatement, whether caused by fraud or error. This includes an assessment of: whether
the accounting policies are appropriate to the Groups and Universitys circumstances and have
been consistently applied and adequately disclosed; the reasonableness of signicant accounting
estimates made by the Council; and the overall presentation of the nancial statements.
In addition, we read all the nancial and non-nancial information in pages 26 to 43 and in
the Annual Reports of the Council and of the General Board to the Council to identify material
inconsistencies with the audited nancial statements. If we become aware of any apparent material
misstatements or inconsistencies we consider the implications for our report.
Independent auditors report to the Council
of the University of Cambridge
Independent auditors report
Opinion on nancial statements
In our opinion the nancial statements:
give a true and fair view of the state of the Groups and Universitys afairs as at 31 July 2012
and of the Groups income and expenditure, recognised gains and losses, and cash ows for
the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and
have been prepared in accordance with the Statement of Recommended Practice
Accounting for Further and Higher Education.
Opinion on other matters prescribed in the HEFCE Audit Code of Practice issued under the
Further and Higher Education Act 1992
In our opinion, in all material respects:
funds from whatever source administered by the institution for specifc purposes have been
properly applied to those purposes and, if relevant, managed in accordance with relevant
legislation;
income has been applied in accordance with the Statutes and Ordinances of the University;
and
funds provided by HEFCE have been applied in accordance with the Financial Memorandum
and any other terms and conditions attached to them.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matter where the HEFCE Audit Code of
Practice issued under the Further and Higher Education Act 1992 requires us to report to you if,
in our opinion:
the statement of internal control is inconsistent with our knowledge of the University and
Group.
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Cambridge
26 November 2012
Notes:
(a) The maintenance and integrity of the University of Cambridges website is the responsibility
of the Council; the work carried out by the auditors does not involve consideration of these
matters and, accordingly, the auditors accept no responsibility for any changes that may have
occurred to the nancial statements since they were initially presented on the website.
(b) Legislation in the United Kingdom governing the preparation and dissemination of nancial
statements may dier from legislation in other jurisdictions.
Basis of preparation
The nancial statements have been prepared in accordance with applicable United Kingdom
accounting standards and the Statement of Recommended Practice: Accounting for Further and
Higher Education (the SORP).
The income and expenditure account includes captions additional to those specied by the SORP
in order to present an appropriate overview for the specic circumstances of the University.
Basis of accounting
The nancial statements have been prepared under the historical cost convention, modied in
respect of the treatment of investments and certain operational properties which are included
at valuation.
Basis of consolidation
The consolidated nancial statements include the University and its subsidiary undertakings
including the Gates Cambridge Trust and other Associated Trusts. Details of the subsidiary
undertakings included are given in note 31. Intra-group transactions and balances are eliminated
on consolidation.
The Gates Cambridge Trust and the Associated Trusts are separately constituted charities. They are
deemed to be subsidiary undertakings of the University since the University appoints the majority
of the trustees of each Trust. The purposes of the Gates Cambridge Trust and the Associated Trusts
are to support the University by enabling persons from outside the United Kingdom to benet
from education in the University by the provision of scholarships and grants and otherwise.
The assets of the Gates Cambridge Trust and the Associated Trusts are therefore not available for
the general purposes of the University.
The consolidated nancial statements do not include the accounts of the 31 Colleges in the
University (the Colleges), each of which is an independent corporation. Transactions with the
Colleges are disclosed in note 33.
The consolidated nancial statements do not include the accounts of Cambridge University
Students Union or of the Cambridge University Graduate Union, as these are separate bodies in
which the University has no nancial interest and over whose policy decisions it has no control.
Statement of Principal Accounting Policies
Recognition of income
Recurrent grant
Recurrent grant is received from the Higher Education Funding Council for England (HEFCE) and
the Teaching Agency (formerly the Training and Development Agency for Schools). Recurrent grant
is recognized as income in the period to which it relates.
Restricted grant income
Grants are received for restricted purposes, principally from HEFCE and research sponsors.
Restricted grants are recognized as income to the extent that relevant expenditure has been
incurred.
Charitable donations
Charitable donations are recognized on receipt or where there is certainty of future receipt and the
value can be measured reliably. The accounting treatment of a donation depends on the nature
and extent of restrictions specied by the donor. Donations with no substantial restrictions are
recognized as income in the income and expenditure account. Donations which are to be retained
for the future benet of the University, and other donations with substantially restricted purposes,
other than for the acquisition or construction of tangible xed assets, are recognized in the
statement of total recognized gains and losses as new endowments.
Capital grants and donations
Grants and donations are received for the purposes of funding the acquisition and construction
of tangible xed assets. In the case of depreciable assets these are credited to deferred capital
grants and released to income over the expected useful life of the respective assets in line with the
depreciation policy. Grants and donations of, or for the acquisition of, freehold land or heritage
assets, which are non-depreciable assets, are credited to income in the year of acquisition.
Academic fees
Tuition fees for degree courses are charged to students by academic term. Income is recognized
for academic terms falling within the period. For short courses, fees are charged in advance for
the entire course and income is recognized to the extent that the course duration falls within the
period.
Examination and assessment services
Income from examination-based assessments is recognized when services are rendered and
substantially complete. Income from qualications not based on examination sessions is
recognized in proportion to the number of modules achieved by candidates.
Publishing and printing
In the case of books and other print publications, income is recognized on delivery of the goods to
the customer. Income generated from electronic publishing, including the provision of perpetual
access, is recognized when the material is initially made available. Subscriptions income is
recognized evenly over subscription periods. Journals income is recognized when the journals are
published and shipped.
Other income
Income is received from a range of activities including residences, catering, conferences, and other
services rendered. Income is recognized on the exchange of the relevant goods or services.
Endowment and investment income
All investment income is credited to the income and expenditure account in the period in which it
is earned. Income from restricted endowments not expended in accordance with the restrictions
of the endowment is transferred from the income and expenditure account to restricted
endowments.
Foreign currency translation
Transactions denominated in foreign currencies are recorded at the rate of exchange ruling at the
date of the transactions. Where foreign branches and subsidiaries of Cambridge University Press
(CUP) accounting in foreign currencies operate as separate businesses, all their assets and liabilities
are translated into sterling at year-end rates and the net eect of currency adjustments is taken
directly to reserves. Otherwise, monetary assets and liabilities denominated in foreign currencies
are translated into sterling at year-end rates and translation dierences are taken to the income
and expenditure account.
Tangible xed assets
Land and buildings
Operational land and buildings are included in the nancial statements at their 1994 valuation with
subsequent additions at cost. On the adoption of Financial Reporting Standard (FRS) 15 (Tangible
xed assets), the University followed the transitional provision to retain the book value of land and
buildings, which had last been revalued on 1 August 1994 on the basis of market value for existing
use, but not to adopt a policy of revaluations of these properties in the future.
No depreciation is provided on freehold land or on assets in construction. Freehold buildings are
written o on a straight line basis over their estimated useful lives, which are between 15 and 50
years, and leasehold properties are written o over the length of the lease.
Equipment
Equipment costing less than 30,000 per individual item is written o in the year of purchase.
All other equipment is capitalized and depreciated so that it is written o on a straight line basis
over its estimated useful life of between four and ten years.
Heritage assets
The University holds and conserves a number of collections, exhibits, artefacts, and other assets of
historical, artistic, or scientic importance. In accordance with FRS 15 and FRS 30 (Heritage assets),
heritage assets acquired before 1 August 1999 have not been capitalized, since reliable estimates
of cost or value are not available on a cost-benet basis. Acquisitions since 1 August 1999 have
been capitalized at cost or, in the case of donated assets, at expert valuation on receipt. In line with
the accounting policy in respect of equipment, the threshold for capitalizing assets is 30,000.
Heritage assets are not depreciated since their long economic life and high residual value mean
that any depreciation would not be material.
Intangible xed assets: goodwill
Goodwill arises on consolidation and is based on the fair value of the consideration given for the
subsidiary and the fair value of its assets at the date of acquisition. Goodwill is amortized over
its estimated economic life of between ve and ten years on a straight line basis. Where there is
impairment in the carrying value of goodwill, the loss is included in the results of the period.
Investments
Fixed asset investments and endowment assets are included in the balance sheet at market value,
except for investments in subsidiary undertakings which are stated in the Universitys balance
sheet at cost and eliminated on consolidation. Properties held for investment purposes are valued
annually on the basis of estimated open market values on an existing use basis by Knight Frank or,
in the case of local non-operational properties, by chartered surveyors employed by the University.
Marketable securities are valued at midmarket valuation on 31 July. Investments in spin-out
companies are valued in accordance with the International Private Equity and Venture Capital
Guidelines, and other non-marketable securities are included at valuation by the Council. Current
asset investments are included in the balance sheet at the lower of cost and net realisable value.
Stocks and work in progress
Stocks are stated at the lower of cost and net realizable value after making provision for slow
moving and obsolete items. In respect of publishing and printing services, (a) direct costs incurred
prior to publication are included in stocks and work in progress and are written o over a period of
up to three years from the publication date; and (b) the University makes full provision against the
cost of stock in excess of one and a half times the most recent years sales on all publications dated
more than two years before the reporting date.
Endowment funds
Endowment funds are classied under three headings:
Where the donor has specifed that the fund is to be permanently invested to generate
an income stream for the general purposes of the University, the fund is classied as an
unrestricted permanent endowment.
Where the donor has specifed that the fund is to be permanently invested to generate an
income stream to be applied for a restricted purpose, the fund is classied as a restricted
permanent endowment.
Where the donor has specifed a particular objective other than the acquisition or construction
of tangible xed assets, and that the University must or may convert the donated sum into
income, the fund is classied as a restricted expendable endowment.
Pension costs
The University contributes to a number of dened benet pension schemes and accounts for the
costs in relation to these schemes in accordance with FRS 17 (Retirement benets).
Where the University is unable to identify its share of the underlying assets and liabilities in
a scheme on a reasonable and consistent basis, it accounts as if the scheme were a dened
contribution scheme, so that the cost is equal to the total of contributions payable in the year.
For other dened benet schemes, the assets of each scheme are measured at fair value, and the
liabilities are measured on an actuarial basis using the projected unit method and discounted
at an appropriate rate of return. The Universitys share of the surplus or decit of the scheme
is recognized as an asset or liability on the balance sheet. The current service cost, being the
actuarially determined present value of the pension benets earned by employees in the current
period, and the past service cost are included within sta costs. Endowment and investment
income includes the net of the expected return on assets, being the actuarial forecast of total
return on the assets of the scheme, and the interest cost being the notional interest cost arising
from unwinding the discount on the scheme liabilities. All changes in the pension surplus or decit
due to changes in actuarial assumptions or dierences between actuarial forecasts and the actual
out-turn are reported in the statement of total recognized gains and losses.
Segmental reporting
The University operates in a number of dierent classes of business. For the purpose of segmental
reporting as required by Statement of Standard Accounting Practice 25 (Segmental reporting),
classes of business have been identied by reference to the nature of activity, the nature of
funding, and the management organization.
Year ended
31 July 2012
Year ended
31 July 2011
Restated
Note m m
Income
Funding body grants 1 197 203
Academic fees and support grants 2 149 127
Research grants and contracts 3 293 284
Examination and assessment services 4 300 266
Publishing and printing services 241 227
Other income 5 123 127
Endowment and investment income 6 19 17
Total income 1,322 1,251
Expenditure
Sta costs 7 579 571
Other operating expenses 8 656 609
Depreciation 8 71 71
Interest and other nance costs 8 11 10
Total expenditure 8 1,317 1,261
Surplus / (decit) on continuing operations 5 (10)
Minority interests in results of subsidiary undertakings (1)

Surplus on continuing operations after minority interest 4 (10)
Transfer from restricted endowments 24 44 43
Surplus for the year retained in general reserves 25 48 33
The income and expenditure account is in respect of continuing activities.
The transfer from restricted endowments for the year ended 31 July 2011 has been restated to
ensure comparability with the basis used for the year ended 31 July 2012, as described in note 11.
Consolidated income and expenditure account
Note of consolidated historical cost result
Year ended
31 July 2012
Year ended
31 July 2011
Note m m
Surplus / (decit) on continuing operations 4 (10)
Realisation of gains on disposal of xed asset investments 25 11 48
Depreciation on revaluation element of tangible xed assets 25 6 6
Historical cost surplus for the year 21 44
Additional information:
Total income and surplus on continuing operations as stated above do not include
the element of Cambridge University Endowment Fund distributions funded out of
long-term capital growth, as described in note 6, amounting to 54m (2011: 48m).
The surplus retained in general reserves does not include the proportion of this element
relating to reserves, amounting to 22m (2011: 18m). The corresponding gures
including these elements are:
Year ended Year ended
31 July 2012 31 July 2011
m m
Total income on a distribution basis 1,376 1,299
Surplus for the year retained within general reserves on a distribution basis 70 51
Year ended
31 July 2012
Year ended
31 July 2011
Restated
Note m m
(Decit) / surplus on income and expenditure account 4 (10)
Increase in market value of investments
Endowment assets 24 39 101
Fixed asset investments 14, 25 27 57
New endowment capital 24 43 49
Loss arising on foreign currency translation 25 (1) (4)
Actuarial loss 25 (66) (29)
Total recognised gains relating to the year 46 164
Prior year adjustment
Reserves 23, 25 57
Total gains since the last annual report 103
Reconciliation
Opening reserves and endowments as previously stated 2,035
Total gains since the last annual report 103
Closing reserves and endowments 2,138
The increase in market value of investments for the year ended 31 July 2011 has been reanalysed
as between endowment assets and xed asset investments to ensure comparability with the basis
used for the year ended 31 July 2012, as described in note 11.
Consolidated statement of total recognised gains
and losses for the year ended 31 July 2012
Group
31 July 2012
Group University
31 July 2012
University
31 July 2011 31 July 2011
Restated Restated
Note m m m m
Fixed assets
Intangible assets 12 5 2 2 2
Tangible assets 13 1,156 1,130 1,154 1,126
Investments 14 705 661 530 484
1,866 1,793 1,686 1,612
Endowment assets 15 1,057 1,019 873 836
Current assets
Stocks and work in progress 16 59 54 50 47
Debtors 17 260 244 238 263
Investments
University 18 197 186 163 160
Held on behalf of others 18 50 24 443 409
Cash at bank and in hand 51 47 28 25
617 555 922 904
Creditors: amounts falling due within one year 19 (506) (448) (825) (793)
Net current assets 111 107 97 111
Total assets less current liabilities 3,034 2,919 2,656 2,559
Creditors: amounts falling due after more than one year 20 (3) (5) - (4)
Pension liabilities 21 (369) (308) (104) (80)
Other retirement benets liability 22 (21) (16) (21) (16)
Total net assets 2,641 2,590 2,531 2,459
Represented by:
Deferred capital grants 23 502 497 502 497
Endowments
Expendable endowments 24 362 352 180 170
Permanent endowments 24 695 667 693 666
24 1,057 1,019 873 836
Reserves
General reserves 25 818 820 931 909
Operational property revaluation reserve 25 127 133 127 133
Fixed asset investment revaluation reserve 25 136 120 98 84
25 1,081 1,073 1,156 1,126
Reserves and endowments 2,138 2,092 2,029 1,962
Minority interest in subsidiary undertakings 1 1 - -
Total 2,641 2,590 2,531 2,459
Deferred capital grants and reserves at 31 July 2011 have been restated to reect the prior year adjustment described in note 23.
The nancial statements on pages 46 to 86 were approved by the Council on 26 November 2012 and signed on its behalf by:
Balance sheets as at 31 July 2012
Professor Sir Leszek Borysiewicz
Vice-Chancellor
Dame Mavis McDonald
Member of Council
Andrew Reid
Director of Finance
Year ended
31 July 2012
Year ended
31 July 2011
Note m m
Net cash inow from operating activities 26 25 40
Returns on investments and servicing of nance 27 19 17
Capital expenditure and nancial investment 27 (37) (53)
Cash inow before use of liquid resources and nancing 7 4
Management of liquid resources
Decrease in short-term deposits 28 - 8
Financing 27 (1) (2)
Increase in cash in the year 6 10
Reconciliation of net cash ow to movement in net funds
Increase in cash 6 10
Cash outow from liquid resources - (8)
Movement in net funds in the year 6 2
Net funds at 1 August 48 46
Net funds at 31 July 28 54 48
Consolidated cash ow statement
2012 2011
m m
1 Funding body grants
Higher Education Funding Council for England (HEFCE)
Recurrent grant 175.5 177.0
Specic grants 5.5 8.9
Deferred capital grant released in year (note 23)
Equipment 2.9 4.0
Buildings 11.1 10.9
HEFCE total 195.0 200.8
Teaching Agency / Training and Development Agency for Schools
Recurrent grant 2.3 2.7
197.3 203.5
2 Academic fees and support grants
Full-time home / EU students 52.7 49.5
Full-time overseas (non-EU) students 52.3 48.7
Other course fees 22.0 21.3
Research Training Support Grants 22.2 7.8
149.2 127.3
In the year ended 31 July 2011 14.0m of income and expenditure relating to studentships
funded by Research Councils and other bodies were excluded from the Universitys income and
expenditure account on the basis that the University dealt with these funds as agent for the
funders. Following a review of the current agreements, which concluded that the University acts
as principal, the equivalent income in the year ended 31 July 2012 has been included in Research
Training Support Grants.
3 Income: research grants and contracts
Research councils 105.3 105.9
UK based charities 87.8 84.4
Other bodies 100.3 93.4
293.4 283.7
Total research grants and contracts income excludes grants of 7.7m (2011: 7.6m) for the
purchase of equipment but includes 9.7m (2011: 9.9m) released from deferred capital grants
to match depreciation of which 6.1m (2011: 7.4m) related to equipment. See note 23.
Notes to the accounts
2012 2011
m m
4 Examination and assessment services
Examination fees 279.7 253.3
Other examination and assessment services 19.9 12.9
299.6 266.2
5 Other income
2012 2011
m m
Other services rendered 34.3 32.1
Health and hospital authorities 17.0 16.7
Residences, catering and conferences 8.8 8.8
Income from intellectual property 10.9 12.9
Released from deferred capital grants (note 23) 8.5 7.3
Unrestricted donations 14.3 16.4
Rental income 7.9 7.1
Donations of, and for the purchase of, heritage assets 5.6 1.3
Sundry income 15.2 23.9
122.5 126.5
6 Endowment and investment income
Credited
to funds
as income
Excess over
income
Underlying
income
2012
2011
Restated
m m m m
Income from expendable endowment asset investments 12.9 (10.2) 2.7 1.9
Income from permanent endowment asset investments 28.0 (22.1) 5.9 5.5
Income from xed asset investments 28.9 (21.7) 7.2 7.0
Other investment income 3.1 3.1 2.6
72.9 (54.0) 18.9 17.0
The University operates a unitized fund, the Cambridge University Endowment Fund (CUEF), for long-
term investment in respect of individual restricted endowments and other balances, and by other Group
undertakings. The CUEF is managed on a total return basis and invests in asset classes some of which
generate little or no income. Distributions are made to unit-holding funds according to a formula which has
regard to the total return reasonably to be expected in the long term, in proportion to the number of units
held. Investing funds receive distributions as income. In the year ended 31 July 2012, distributions by the
CUEF exceeded income received in the year by the CUEF from its underlying investments by 54.0m (2011:
48.0m), the balance of the distributions being funded by drawing on long-term capital growth.
The deduction reecting the extent to which CUEF distributions exceeded underlying income is applied
to the categories of endowment and investment income in proportion to the value of CUEF distributions
included. In previous years no element of the deduction was apportioned against income from endowment
asset investments. Comparative gures have been restated.
7 Sta costs
2012 2011
m m
Wages and salaries 442.4 442.6
Social security costs 39.8 39.2
Pension costs (note 30) 96.4 89.1
578.6 570.9
Remuneration of the Vice-Chancellor 2012 2011
000 000
Current Vice-Chancellor
Remuneration excluding employers pension contributions 271 223
Employers pension contributions 43 35
Previous Vice-Chancellor
Remuneration excluding employers pension contributions - 54
Employers pension contributions - -
314 312
Remuneration of higher paid sta
Remuneration for this purpose excludes employers pension contributions except
to the extent that these result from the sacrice of an element of pay.
The numbers in each band have been analyzed by segment (see note 10).
Education and research Assessment 2012 2011
Clinical Non-Clinical and Press Total Total
100,001 110,000 21 28 11 60 53
110,001 120,000 9 27 10 46 55
120,001 130,000 6 23 11 40 36
130,001 140,000 9 8 2 19 24
140,001 150,000 12 6 1 19 21
150,001 160,000 10 4 5 19 15
160,001 170,000 8 3 4 15 10
170,001 180,000 5 6 1 12 8
180,001 190,000 4 1 2 7 8
190,001 200,000 4 1 1 6 7
200,001 210,000 1 1 2 3
210,001 220,000 1 1 2
220,001 230,000 2 1 3 2
230,001 240,000 2 2
240,001 250,000 1
250,001 260,000 1 1
260,001 270,000 2
270,001 280,000 1 1 1
280,001 290,000
290,001 300,000
300,001 310,000 1 1 1
310,001 320,000
320,001 330,000
330,001 340,000 1 2 3 1
340,001 350,000 1 1 2
350,001 360,000 1
The above statistics include additional payments to employees of the University
on behalf of NHS bodies.
Compensation for loss of oce
Aggregate payments for compensation for loss of oce paid to senior members of
sta earning in excess of 100,000 per annum (four in 201112, none in 201011):
2012 2011
000 000
Payments in respect of loss of oce 828 -
8 Analysis of expenditure by activity
Sta
costs
Other
operating
expenses
Deprec-
iation
Interest
payable
2012
Total
2011

m m m m m m
Academic departments 195.7 49.8 5.9 - 251.4 244.2
Academic services 25.6 13.0 0.7 - 39.3 37.0
Payments to Colleges (see note 33) - 41.6 - - 41.6 40.8
Research grants and contracts 131.3 109.5 9.7 - 250.5 237.0
Other activities
Examination and assessment services 79.7 156.2 11.4 - 247.3 226.3
Publishing and printing services 81.2 158.0 6.4 4.2 249.8 235.3
Other services rendered 7.9 20.5 0.1 - 28.5 29.5
Intellectual property 2.1 4.8 - - 6.9 5.7
Residences, catering and conferences 2.3 8.2 - - 10.5 11.2
Other activities total 173.2 347.7 17.9 4.2 543.0 508.0
Administration and central services
Administration 39.2 3.3 2.1 - 44.6 44.9
General educational 2.3 47.5 - - 49.8 42.9
Sta and student facilities 3.2 1.5 - - 4.7 4.3
Development oce 3.3 3.8 - - 7.1 6.2
Other 3.7 2.4 - - 6.1 2.0
Administration and central services total 51.7 58.5 2.1 - 112.3 100.3
Premises 10.4 36.3 35.1 - 81.8 81.7
Voluntary severance scheme - - - - - 5.4
Pension cost adjustments for CPS
(see note 30) (9.3) - - 6.9 (2.4) 6.6
Total per income and expenditure account 578.6 656.4 71.4 11.1 1,317.5 1,261.0
The depreciation charge has been funded by:
Deferred capital grants (note 23) 32.1
Revaluation reserve (note 25) 6.0
General income 33.3
71.4
In the year ended 31 July 2011 14.0m of income and expenditure relating to studentships
funded by Research Councils and other bodies were excluded from the Universitys income
and expenditure account on the basis that the University dealt with these funds as agent
for the funders. Following a review of the current agreements, which concluded that the
University acts as principal, the equivalent expenditure in the year ended 31 July 2012 has
been included in other operating expenses.
Other operating expenses include: 2012 2011
000 000
Auditors remuneration
Audit fees payable to the Universitys external auditors 738 728
Other fees payable to the Universitys external auditors 293 178
Audit fees payable to other rms 96 60
Payments to trustees
Reimbursement of expenses to two external members of Council 5 2
These amounts include related irrecoverable VAT.

9 Surplus / (decit) on continuing operations
2012 2011
m m

The surplus / decit on continuing operations for the year is made up as follows:
Universitys surplus for the year 37.1 30.9
Surplus generated by subsidiary undertakings and transferred to the University under gift aid 2.9 2.7
Surplus dealt with in the accounts of the University 40.0 33.6
Group level adjustments re dened benet schemes 2.3 (5.1)
Decit retained in subsidiary undertakings (37.7) (38.1)
4.6 (9.6)
10 Segmental reporting
The group consisting of the University and its subsidiary undertakings has three principal classes of activity:
Education and research
Assessment Examination and assessment services, carried out by the University of
Cambridge Local Examinations Syndicate and subsidiary undertakings,
collectively known as Cambridge Assessment.
Press Publishing and printing services, carried out by the Cambridge University Press
Syndicate and subsidiary undertakings
Income, result for the year and net assets at the year end are attributable to the three segments as follows:
Segment
total
income
Inter-
segment
income
Income
from third
parties
(Decit) /
surplus
Net
assets
m m m m m
Year ended 31 July 2012
Education and research 799.2 33.0 766.2 (23.4) 2,607.2
Assessment 309.0 - 309.0 28.8 294.0
Press 246.9 - 246.9 (3.1) 5.5
1,355.1 33.0 1,322.1 2.3 2,906.7
Unallocated re Contributory Pension Scheme - - - 2.3 (265.7)
Group 1355.1 33.0 1,322.1 4.6 2,641.0
Year ended 31 July 2011
Education and research 756.8 14.8 742.0 (35.9) 2,516.0
Assessment 273.9 - 273.9 32.9 264.9
Press 235.5 - 235.5 - 37.2
1,266.2 14.8 1,251.4 (3.0) 2,818.1
Unallocated re Contributory Pension Scheme - - - (6.6) (228.6)
Group 1,266.2 14.8 1,251.4 (9.6) 2,589.5
11 Restatement of prior year
The University has changed the method of calculating the transfer from restricted
endowments shown at the foot of the income and expenditure account. In previous
years the calculation did not take into account the extent to which CUEF distributions
credited to endowment funds as income were funded out of the long-term capital growth
in value of the investments held by the CUEF rather than out of underlying investment
income. For the year ended 31 July 2012 the calculation, as set out in note 24, takes this
factor into account. There have been corresponding changes in the calculation of the
increases in market value of endowment assets and of xed asset investments, disclosed
in the statement of recognized gains and losses. Prior year gures have been restated
accordingly. These changes have no impact on the result on continuing operations for the
year or for the previous year.
The impact on the income and expenditure account and the statement of total recognized
gains and losses for the year ended 31 July 2011 is as follows:
Previously
stated
Adjustment Restated
m m m
Income and expenditure account
Transfer from restricted endowments 13.3 29.7 43.0
Surplus for the year retained in general reserves 3.4 29.7 33.1
Statement of total recognised gains and losses
Increase in market value of investments
Endowment assets 71.0 29.7 100.7
Fixed asset investments 86.9 (29.7) 57.2
The equivalent movements in the Universitys reserves as disclosed in note 25 have
also been restated to ensure comparability:
Surplus for the year retained in general reserves 8.3 25.3 33.6
Increase in market value of xed asset investments 65.5 (25.3) 40.2
12 Intangible xed assets: goodwill and others
Group
2012
Group
2011
University
2012
University
2011
m m m m
Opening balance 2.2 3.0 1.7 0.9
Additions in the year 3.8 1.0 1.2 2.1
Amortisation charge for the year (1.2) (1.8) (0.7) (1.3)
Closing balance 4.8 2.2 2.2 1.7
13 Tangible xed assets
Group Land and Assets in Equipment Heritage 2012 2011
buildings construction assets Total Total
m m m m m m
Cost or valuation
At 1 August 1,255.6 66.5 267.8 36.1 1,626.0 1,536.6
Additions at cost 3.7 66.1 25.1 5.9 100.8 105.4
Transfers 38.7 (45.8) 7.1 - - -
Disposals (4.0) (0.1) (14.6) - (18.7) (14.5)
Currency adjustments 0.2 - (0.3) - (0.1) (1.5)
At 31 July 1,294.2 86.7 285.1 42.0 1,708.0 1,626.0
Accumulated depreciation
At 1 August 293.7 - 202.9 - 496.6 436.2
Charge for the year 42.5 - 28.9 - 71.4 71.0
Elimination on disposals (3.1) - (12.7) - (15.8) (10.1)
Currency adjustments - - (0.1) - (0.1) (0.5)
At 31 July 333.1 - 219.0 - 552.1 496.6
Net book value
At 31 July 961.1 86.7 66.1 42.0 1,155.9 1,129.4
At 1 August 961.9 66.5 64.9 36.1 1,129.4 1,100.4
University
Cost or valuation
At 1 August 1,255.8 66.0 249.6 36.1 1,607.5 1,518.0
Additions at cost 2.5 66.5 23.8 5.9 98.7 104.5
Transfers 39.0 (45.6) 6.6 - - -
Disposals - (0.1) (14.3) - (14.4) (13.2)
Currency adjustments 0.1 - - - 0.1 (1.8)
At 31 July 1,297.4 86.8 265.7 42.0 1,691.9 1,607.5
Land and Assets in Equipment Heritage 2012 2011
buildings construction assets Total Total
m m m m m m
Accumulated Depreciation
At 1 August 292.3 - 189.2 - 481.5 422.7
Charge for the year 42.7 - 26.4 - 69.1 68.5
Elimination on disposals - - (12.4) - (12.4) (9.2)
Currency adjustments 0.1 - - - 0.1 (0.5)
At 31 July 335.1 - 203.2 - 538.3 481.5
Net book value
At 31 July 962.3 86.8 62.5 42.0 1,153.6 1,126.0
At 1 August 963.5 66.0 60.4 36.1 1,126.0 1,095.3
Land and buildings includes land totalling 83.7m (2011: 83.6m) which is not depreciated.
The cost to the Group of freehold buildings and assets in construction consists of the cost incurred
by the University less the surplus recorded in the accounts of Lynxvale Limited, a subsidiary undertaking,
and eliminated on consolidation.
Heritage assets
The University holds and conserves certain collections, artefacts and other assets of historical, artistic or
scientic importance. Most of these are housed in the Universitys nationally accredited museums and
collections and in its libraries, providing a valuable research and educational resource locally, nationally
and internationally, as well as an unrivalled opportunity to present the Universitys work to a wide audience.
Other collections are held in academic departments or are on display as public art. Major collections include
those held by the University Library, a legal deposit, the Botanic Garden and the Fitzwilliam Museum.
In respect of its major collections, the Universitys practice, in accordance with the national accreditation
standards, is: to preserve, conserve and manage the objects in its care; to augment the collections
where appropriate and within the resources available; to enable and encourage access to and use of the
collections for teaching and research; and to enable wide access to and engagement with the collections
by members of the public.
As stated in the statement of principal accounting policies, heritage assets acquired since 1 August 1999
have been capitalized. The majority of assets held in the Universitys collections were acquired before
1 August 1999; because reliable estimates of cost or valuation are not available for these on a cost-benet
basis they have not been capitalized. As a result the total included in the balance sheet is partial.
Additions for the current and previous four years
were as follows: 2012 2011 2010 2009 2008
m m m m m
Acquisitions purchased with specic donations 0.9 0.1 1.7 - 0.4
Value of acquisitions by donation 4.7 1.2 1.8 0.7 8.3
Total acquired by, or funded by, donations 5.6 1.3 3.5 0.7 8.7
Acquisitions purchased with University funds 0.3 0.1 0.2 - 0.3
Total acquisitions capitalised 5.9 1.4 3.7 0.7 9.0
14 Fixed asset investments
Group Group University University
2012 2011 2012 2011
m m m m
Opening balance 661.2 517.8 484.4 381.6
Net additions in the year 16.9 86.2 26.5 62.5
Increase in market value of investments 27.0 57.2 19.0 40.2
Closing balance 705.1 661.2 529.9 484.3
Represented by:
Property 85.0 76.8 73.1 66.7
Securities 577.6 532.5 407.1 362.7
Money market investments 0.4 0.4 0.4 17.9
Investments in subsidiary undertakings - - 23.1 1.8
Investment in spin-out companies (see note 31) 10.4 8.4 4.1 3.0
Cash in hand and at investment managers 30.8 43.7 22.1 29.8
Investments in joint ventures 0.9 (0.6) - 2.4
705.1 661.2 529.9 484.3
15 Endowment assets
Long-term investments
Property 58.2 52.4 48.5 43.3
Securities 885.0 834.7 727.7 680.6
1,042.6 1,009.8 864.6 830.8
Investment in spin-out companies (see note 31) 8.7 4.8 8.7 4.8
Short-term deposits - 0.2 - -
Bank balances 5.2 3.7 - -
1,056.5 1,018.5 873.3 835.6
16 Stocks and work in progress
2012 2011 2012 2011
m m m m
Goods for resale 27.4 33.5 21.0 26.7
Pre-publication costs and other work in progress 30.6 20.6 28.9 20.0
Other stocks 0.5 0.2 0.3 -
58.5 54.3 50.2 46.7
17 Debtors
Research grants recoverable 55.0 59.8 55.0 59.8
Amounts due from subsidiary undertakings - - 18.9 56.6
Debtors re examination and assessment services 73.4 64.9 58.8 58.1
Debtors re publishing and printing 80.1 77.4 62.0 56.6
Other debtors 51.8 41.4 43.1 32.3
260.3 243.5 237.8 263.4
18 Current asset investments
Property 2.9 1.3 24.1 21.3
Securities 43.0 19.5 358.4 330.2
247.1 209.8 605.6 569.3
Representing:
University 196.7 185.4 162.7 160.4
Held on behalf of subsidiary undertakings,
Colleges and other associated bodies (see note 19) 50.4 24.4 442.9 408.9
247.1 209.8 605.6 569.3
Current asset investments include investments held on behalf of subsidiary undertakings, Colleges and other
associated bodies. The book value of these investments is included in creditors due within one year.
19 Creditors: amounts falling due within one year
2012 2011 2012 2011
m m m m
Bank overdraft 2.5 3.3 2.5 3.2
Current portion of long-term bank loan 4.4 0.5 4.4 0.6
Research grants received in advance 122.0 107.4 122.0 107.4
Amounts due to subsidiary undertakings - - 6.3 39.2
Creditors re examination and assessment services 91.6 88.4 42.3 39.2
Creditors re publishing services 80.0 61.2 69.6 53.2
Other creditors 154.9 162.7 134.8 141.6
Investments held on behalf of subsidiary undertakings,
Colleges and other associated bodies (see note 18) 50.4 24.4 442.9 408.9
505.8 447.9 824.8 793.3
20 Creditors: amounts falling due after more than one year
Amounts due to subsidiary undertakings - - 0.1 0.1
Bank loans - 4.4 - 4.3
Deferred income 0.4 0.4 - -
Other creditors 2.3 - - -
2.7 4.8 0.1 4.4
21 Pension liabilities
The pension liabilities have been measured in accordance with Group Group University University
the requirements of FRS 17 and relate to the dened benet 2012 2011 2012 2011
schemes disclosed in note 30. m m m m
Opening balance 308.1 274.4 79.6 77.2
Movement in year
Current service cost including life assurance 27.8 26.6 2.3 2.6
Contributions (40.6) (28.4) (5.9) (3.7)
Other nance cost 10.0 8.9 3.1 3.1
Currency adjustments 1.6 (2.6) 1.5 (2.6)
Actuarial loss recognised in statement of total
recognised gains and losses 62.4 29.2 23.0 3.0
Closing balance 369.3 308.1 103.6 79.6
22 Other retirement benets liability
Group and University 2012 2011
m m
The liability has been measured in accordance with the requirements of FRS 17
and relates to unfunded post-retirement medical and insurance schemes.
Opening balance 15.9 15.1
Movement attributable to the year
Current service cost less benets paid 0.4 0.5
Contributions (0.2) (0.2)
Other nance cost 0.8 0.8
Currency adjustments 0.2 (0.6)
Actuarial loss recognised in statement of total
recognised gains and losses 3.4 0.3
Closing balance 20.5 15.9
23 Deferred capital grants
Funding Research Other 2012 2011
Group and University Council Grants Grants Total
m m m m m
Balance 1 August
Buildings: as previously stated 181.7 72.7 278.9 533.3 523.5
Prior year adjustment 44.3 - (101.4) (57.1) (57.1)
Buildings: restated opening balance 226.0 72.7 177.5 476.2 466.4
Equipment 8.0 11.8 0.4 20.2 19.5
234.0 84.5 177.9 496.4 485.9
Grants received
Buildings 25.6 (1.5) 4.6 28.7 30.2
Equipment 1.0 7.7 0.6 9.3 12.7
26.6 6.2 5.2 38.0 42.9
Released to income and expenditure
Buildings - for depreciation (11.1) (3.6) (8.2) (22.9) (20.4)
Equipment - for depreciation (2.9) (6.1) (0.2) (9.2) (11.7)
Equipment - on disposals (0.2) (0.1) - (0.3) (0.3)
(14.2) (9.8) (8.4) (32.4) (32.4)
Balance 31 July
Buildings 240.5 67.6 173.9 482.0 476.2
Equipment 5.9 13.3 0.8 20.0 20.2
246.4 80.9 174.7 502.0 496.4
The prior year adjustment is the correction of misstatements in the nancial statements for previous years in
respect of the funding of construction costs before 31 July 2007. In the nancial statements for the year ended
31 July 2011, deferred capital grants were overstated and reserves were understated by 57.1m. The balance
sheet has been restated accordingly. There is no impact on the result for the year or for the previous year.
24 Endowments
2012 2011
Group Expendable Permanent Total Total
Restated
m m m m
Balance 1 August 351.6 666.9 1,018.5 911.7
New endowments received 26.5 17.0 43.5 49.1
Transfers 4.6 (4.6) - -
Income receivable from endowment asset investments
(see note 6) 2.7 5.9 8.6 7.4
Expenditure (34.8) (17.9) (52.7) (50.4)
Balance 31 July 361.7 694.8 1,056.5 1,018.5
Capital 348.3 606.7 955.0 929.4
Unspent income 13.4 88.1 101.5 89.1
Balance 31 July 361.7 694.8 1,056.5 1,018.5
Representing:
Trust and Special Funds:
Professorships, Readerships and Lectureships 41.3 342.0 383.3 363.1
Scholarships and bursaries 20.0 89.7 109.7 108.4
Other 87.1 255.1 342.2 326.3
Gates Cambridge Trust 173.3 - 173.3 172.3
Specic donations 35.6 - 35.6 36.0
Examination Board restricted funds 4.4 - 4.4 4.4
General endowments - 8.0 8.0 8.0
Group total 361.7 694.8 1,056.5 1,018.5
Investment income and increase in value of investments for the year ended 31 July 2011 have been
restated as described in notes 6 and 11.
Transfer to income and expenditure account
The transfer from endowments to the income and expenditure account represents the extent to which
expenditure has been funded from endowment funds, after deducting the related investment income
which is credited separately as part of total income. The transfer is calculated as follows:
2012 2011
Expendable Permanent Total Total
Restated
m m m m
Expenditure 34.8 17.9 52.7 50.4
Less investment income (2.7) (5.9) (8.6) (7.4)
Transfer to income and expenditure account 32.1 12.0 44.1 43.0
The transfer for the year ended 31 July 2011 has been restated as described in note 11.
University
Balance 1 August 170.1 665.5 835.6 741.2
New endowments received 22.0 17.0 39.0 45.4
Income receivable from endowment asset investments 1.3 5.9 7.2 6.0
Expenditure (18.5) (22.5) (41.0) (39.8)
Balance 31 July 179.9 693.4 873.3 835.6
Capital 167.0 605.5 772.5 746.7
Unspent income 12.9 87.9 100.8 88.9
Balance 31 July 179.9 693.4 873.3 835.6
Investment income and increase in value of investments for the year ended 31 July 2011 have been
restated as described in notes 6 and 11.
25 Reserves
Operational Fixed asset
Group property investment
General revaluation revaluation 2012 2011
reserves reserve reserve Total Total
Restated
m m m m m
Balance 1 August
As previously stated 763.1 133.2 119.7 1,016.0 958.8
Prior year adjustment (see note 23) 57.1 - - 57.1 57.1
Restated opening balance 820.2 133.2 119.7 1,073.1 1,015.9
Surplus retained for the year 47.9 - - 47.9 33.1
Actuarial loss (65.8) - - (65.8) (29.5)
Transfer in respect of depreciation on revalued
operational properties 6.0 (6.0) - - -
Transfer in respect of disposals of xed asset
investments 10.6 - (10.6) - -
Loss arising on foreign currency translation (1.2) - - (1.2) (3.6)
Increase in market value of investments - - 27.0 27.0 57.2
Balance 31 July 817.7 127.2 136.1 1,081.0 1,073.1
The surplus retained in reserves and the increase in market value of investments for the year ended 31 July
2011 have been restated as described in note 11.
Reserves are reduced by the net liabilities in respect of retirement benets
Reserves before net liabilities in respect
of retirement benets 1,207.5 127.2 136.1 1,470.8 1,397.1
Eect of pension liability (see note 21) (369.3) - - (369.3) (308.1)
Eect of liability for other retirement benets
(see note 22) (20.5) - - (20.5) (15.9)
Reserves balance at 31 July 817.7 127.2 136.1 1,081.0 1,073.1
University Operational Fixed asset
property investment
General revaluation revaluation 2012 2011
reserves reserve reserve Total Total
Restated
m m m m m
Balance 1 August
As previously stated 852.7 133.2 84.0 1,069.9 1,001.5
Prior year adjustment (see note 23) 57.1 - - 57.1 57.1
Restated opening balance 909.8 133.2 84.0 1,127.0 1,058.6
Surplus retained for the year 40.0 - - 40.0 33.6
Actuarial loss (26.4) - - (26.4) (3.3)
Transfer in respect of depreciation on revalued
operational properties 6.0 (6.0) - - -
Transfer in respect of disposals of xed asset
investments 4.6 - (4.6) - -
Loss arising on foreign currency translation (2.9) - - (2.9) (2.1)
Increase in market value of investments - - 19.0 19.0 40.2
Balance 31 July 931.1 127.2 98.4 1,156.7 1,127.0
The surplus retained in reserves and the increase in market value of investments for the year ended 31 July
2011 have been restated as described in note 11.
26 Reconciliation of consolidated operating surplus / (decit) to net cash
inow from operating activities
2012 2011
m m
Surplus / (decit) on continuing operations 4.6 (9.6)
Depreciation of xed tangible assets 71.4 71.0
Amortisation of goodwill 1.2 1.8
Surplus / (decit) on disposal of tangible xed assets 1.9 (3.1)
Deferred capital grants released to income (32.1) (32.1)
Donations of, and for the purchase of, heritage assets (5.6) (1.3)
Investment income (18.9) (17.0)
Interest payable 11.1 10.0
Pension cost less contributions payable (see note 21) (12.8) (1.8)
Other retirement benets - cost less contributions payable (see note 22) 0.2 0.3
Currency adjustments 0.6 (5.8)
21.6 12.4
(Increase) / reduction in stock (4.2) 4.3
(Increase) / reduction in debtors (16.8) 0.1
Increase in creditors 24.2 23.3
Net cash inow from operating activities 24.8 40.1
27 Cash ows 2012 2011
m m
Returns on investments and servicing of nance
Endowment and investment income received 18.9 17.0
Interest paid (0.3) (0.3)
Net cash inow from returns on investments and servicing of nance 18.6 16.7
Capital expenditure and nancial investment
Purchase of tangible xed assets (89.2) (107.6)
Acquisition of goodwill and other intangible xed assets (3.8) (1.0)
Donations for buildings and other deferred capital grants received 38.9 42.9
Proceeds of disposal of tangible xed assets 0.7 7.2
Net purchase of long-term investments (excluding investments held on behalf of others) (26.3) (43.9)
New endowments received 43.5 49.1
Additional investment in subsidiaries (0.7) -
Net cash outow from capital expenditure and nancial investment (36.9) (53.3)
Financing
Repayment of long-term loans (0.5) (1.6)
28 Analysis of the balances of cash and bank overdraft
2012 2011 2012 2011
m m m m
Bank overdrafts (2.5) (3.3) (2.5) (3.2)
Bank balances included in endowment assets 5.2 3.7 - -
Cash at bank and in hand 51.1 47.3 28.4 25.2
53.8 47.7 25.9 22.0
Add short term deposits:
Endowment asset investments - 0.2 - -
Net funds 53.8 47.9 25.9 22.0
29 Capital commitments 2012 2011
m m
Commitments contracted at 31 July 147.2 81.4
Authorised but not contracted at 31 July - 1.4
Of the capital expenditure committed at 31 July 2012, approximately 38% (2011: 65%) will be funded by
specic grants and donations.
30 Pension schemes
The two principal pension schemes for the Universitys sta are the Universities Superannuation
Scheme (USS) and the Cambridge University Assistants Contributory Pension Scheme (CPS). Cambridge
University Press operates two dened benet schemes for its UK sta, the Press Contributory Pension
Fund (PCPF) and the Press Senior Sta Pension Scheme (PSSPS). Employees covered by the schemes
are contracted out of the State Second Pension. The assets of the schemes are held in separate
trustee-administered funds. The USS and the CPS are not closed, nor is the age prole of their active
membership rising signicantly. The PCPF and the PSSPS have been closed to new members.
The schemes are dened benet schemes which are valued every three years using the projected unit
method, by professionally qualied actuaries, the rates of contribution payable being determined by
the trustees on the advice of the actuaries.
Universities Superannuation Scheme (USS)
The University is unable to identify its share of the underlying assets and liabilities of the scheme on
a consistent and reliable basis and therefore, as required by FRS 17 (Retirement Benets) accounts
for the scheme as if it were a dened contribution scheme.
The latest triennial actuarial valuation of the scheme was at 31 March 2011 and was the second
valuation for this scheme to require the calculation of technical provisions in accordance with
the Pensions Act 2004. The assumptions that have the most signicant eect on the result of the
valuation were as follows:
Investment returns per annum 6.10%
Salary scale increases per annum 4.40%
Pension increases per annum
First three years 3.40%
Thereafter 2.60%
Mortality - equivalent life expectancy for members reaching retirement age of 65:
Males currently aged 65 89
Males currently aged 45 91
Females currently aged 65 91
Females currently aged 45 93
At the valuation date, the value of the assets of the scheme was 32,433.5m and the value of the
schemes technical provisions was 35,343.7m. The assets were therefore sucient to cover 92% of
the benets which had accrued to members after allowing for expected future increases in earnings.
At 31 March 2012 the actuary has estimated that the funding level had fallen from 92% to 77%.
This estimate was based on the results from the valuation at 31 March 2011 allowing primarily for
investment returns and changes to market conditions over the following twelve months.
The contribution rate payable by the University in the year ended 31 July 2012 was 16% of
pensionable pay. The schemes trustees have determined a recovery plan to pay o the shortfall
shown by the 31 March 2011 valuation by 31 March 2021; under the recovery plan the Universitys
contribution rate would increase to 18% of pensionable pay from 1 April 2017 to 31 March 2021.
The contribution rate will be reviewed as part of each triennial valuation and may be reviewed more
frequently.
30 Pension schemes (continued)
Cambridge University Assistants Contributory Pension Scheme (CPS)
The CPS was established under the authority of the Universities of Oxford and Cambridge Act 1923.
It is a registered pension scheme for the purposes of Finance Act 2004. The active members of the
scheme are employees of the University and its subsidiary undertakings.
Triennial valuation of the scheme
A full triennial valuation of the scheme was carried out by the actuary for the trustees of the scheme
for funding purposes as at 31 July 2009. The results showed the actuarial value of the schemes
assets as 275.9m. These were insucient to cover the schemes past service liabilities of 414.7m
and as a result the scheme had a decit of 138.8m and was 67% funded. The joint contribution
rate was set at 29.7% of pensionable pay from 1 August 2009. From 1 August 2011 to 31 July 2025
the joint contribution rate has been set at 26.3% of pensionable pay together with additional xed
contributions totalling 14.6m per annum. The results of the triennial actuarial valuation as at
31 July 2012 are awaited.
CPS: Pension costs under FRS 17
For accounting purposes the schemes assets are measured at market value and liabilities are valued
using the projected unit method and discounted using the gross redemption yield for corporate AA rated
bonds. The valuation uses market-based assumptions and asset valuations, and represents a current
valuation. It does not impact on the joint contribution rate set by the trustees of the scheme. The principal
assumptions used by the actuary were:
2012 2011
Discount rate 4.50% 5.30%
Expected rate of return on scheme assets at beginning of year 6.50% 6.70%
Rate of increase in salaries 3.50% 4.25%
Rate of increase in pensions in deferment 2.75% 3.50%
Rate of increase in pensions in payment 2.75% 3.50%
Mortality equivalent life expectancy for members reaching the age of 65
Males currently aged 65 87 86
Males currently aged 45 88 87
Females currently aged 65 90 89
Females currently aged 45 92 90
The following results were measured in accordance with the requirements of FRS 17, based on the
assumptions summarised above:
Present value of dened
benet obligation
Fair value of scheme
assets
Net liability recognised
in the balance sheet
2012 2011 2012 2011 2012 2011
m m m m m m
Opening (587.7) (516.5) 359.4 320.4 (228.3) (196.1)
Current service cost (25.5) (24.0) - - (25.5) (24.0)
Employer contributions - - 34.7 23.2 34.7 23.2
Expected return on scheme
assets - - 24.4 22.3 24.4 22.3
Contributions by members (0.5) (0.5) 0.5 0.5 - -
Interest cost (31.3) (28.1) - - (31.3) (28.1)
Actuarial (losses) / gains (17.0) (34.9) (22.4) 9.3 (39.4) (25.6)
Benets and expenses paid 19.2 16.3 (19.2) (16.3) - -
Closing dened benet
obligation (642.8) (587.7) 377.4 359.4 (265.4) (228.3)
The amounts recognised in the income and expenditure account were as follows: 2012 2011
m m
In sta costs: current service cost 25.5 24.0
In interest and other nance costs:
Expected return on pension scheme assets 24.4 22.3
Interest on pension scheme liabilities (31.3) (28.1)
(6.9) (5.8)
The total of actuarial losses recognised in the statement of total recognised gains and losses
was 39.4m (2011: 25.6m).
Amounts for the current and previous four years
were as follows: 2012 2011 2010 2009 2008
m m m m m
Dened benet obligation (642.8) (587.7) (516.5) (458.7) (405.5)
Plan assets 377.4 359.4 320.4 275.9 290.8
Decit at the balance sheet date (265.4) (228.3) (196.1) (182.8) (114.7)
Experience gains / (losses) for the year
on plan liabilities 9.2 (1.6) 7.1 3.9 (1.3)
Experience (losses) / gains for the year
on plan assets (22.4) 9.3 15.8 (41.2) (51.2)
The above results have been recognised in the consolidated balance sheet. The University is, however, unable
to identify its own share of the underlying assets and liabilities in the scheme, as distinct from that attributable
to subsidiary undertakings, on a reasonable and consistent basis. For the University itself, therefore, pension
costs are accounted for as if the CPS were a dened contribution scheme, and the Universitys own balance
sheet does not include a pension liability in respect of the CPS.
30 Pension schemes (continued)
Cambridge University Press UK dened benet schemes (PCPF and PSSPS)
Triennial valuation of the schemes
Full triennial valuations of the schemes were carried out by the actuary for the trustees of the
schemes for funding purposes as at 1 January 2010.
Pension costs under FRS 17
For accounting purposes the schemes assets are measured at market value and liabilities
are valued using the attained age method and discounted using the gross redemption
yield for corporate AA rated bonds. The valuations use market-based assumptions and
asset valuations, and represent current valuations. They do not impact on the joint
contribution rates set by the trustees of the schemes. The actuary has updated the 2010
valuations to 31 July 2011 and 31 July 2012 for the purposes of the Universitys nancial
statements. The principal assumptions used by the actuary for both schemes were:
2012 2011
Discount rate 4.50% 5.30%
Expected rate of return on scheme assets at beginning of year 5.90% 5.90%
Rate of increase in salaries - schemes are now on frozen current salary basis 0.00% 0.00%
Rate of increase in pensions in deferment 3.30% 3.50%
Rate of increase in pensions in payment 3.30% 3.50%
Mortality - equivalent life expectancy for members at age 65:
Males 87 87
Females 90 90
The following results were measured in accordance with the requirements of FRS 17,
based on the assumptions summarised above. The results for the two schemes have been
amalgamated.
Present value of dened
benet obligation
Fair value of scheme
assets
Net liability recognised
in the balance sheet
2012 2011 2012 2011 2012 2011
m m m m m m
Opening (241.4) (223.2) 166.9 152.4 (74.5) (70.8)
Current service cost (2.0) (2.4) - - (2.0) (2.4)
Employer contributions - - 5.4 3.4 5.4 3.4
Expected return on scheme assets - - 9.8 9.0 9.8 9.0
Contributions by members (0.3) (0.3) 0.3 0.3 - -
Interest cost (12.9) (12.0) - - (12.9) (12.0)
Actuarial (losses) / gains (23.9) (12.6) 3.5 10.9 (20.4) (1.7)
Benets and expenses paid 8.8 9.1 (8.8) (9.1) - -
Closing dened benet obligation (271.7) (241.4) 177.1 166.9 (94.6) (74.5)
The amounts recognised in the income and expenditure account were as follows: 2012 2011
m m
In sta costs: current service cost 2.0 2.4
In interest and other nance costs:
Expected return on pension scheme assets 9.8 9.0
Interest on pension scheme liabilities (12.9) (12.0)
(3.1) (3.0)
The total of actuarial losses recognised in the statement of total recognised gains and losses
was 20.4m (2011: 1.7m).
Amounts for the current and previous four years
were as follows: 2012 2011 2010 2009 2008
m m m m m
Dened benet obligation (271.7) (241.4) (223.2) (208.6) (192.3)
Plan assets 177.1 166.9 152.4 139.8 151.4
Decit at the balance sheet date (94.6) (74.5) (70.8) (68.8) (40.9)
Experience (losses) / gains for the year
on plan liabilities (4.2) (8.4) (2.4) 0.4 1.4
Experience gains / (losses) for the year
on plan assets 3.5 10.9 8.5 (17.8) (20.0)
The University also has a smaller number of sta in other pension schemes, including the
National Health Service Pension Scheme (NHSPS). Further disclosures are not given as the
balances and movements are not material.
2012 2011
The total pension cost for the year (see note 7) was: m m
USS: contributions 58.6 54.4
CPS: charged to income and expenditure account 25.5 24.0
PCPF: charged to income and expenditure account 1.5 2.1
PSSPS: charged to income and expenditure account 0.5 0.6
NHSPS: contributions 1.9 1.9
Contributions to other pension schemes 8.4 6.1
96.4 89.1
31 Principal subsidiary and associated undertakings and other signicant investments
The following undertakings were subsidiary undertakings throughout the year ended 31 July 2012.
Except where stated, the accounting reference date is 31 July and the undertaking is a wholly-owned
company registered in England and Wales.
Name Notes Principal activity
Cambridge Enterprise Limited Consultancy and commercial exploitation of intellectual property
IFM Education and Consultancy Services Limited Consultancy and commercial exploitation of intellectual property
Cambridge Investment Management Limited Investment management
Cambridge Programme for Sustainability
Leadership (Australia)
a Sustainability leadership programmes
Cambridge Programme for Sustainability
Leadership (South Africa)
b Sustainability leadership programmes
Fitzwilliam Museum (Enterprises) Limited Publication of ne art books and sale of museum merchandise
JBS Executive Education Limited Corporate education services
Lynxvale Limited Provision of construction and development services
The Cambridge Foundation c Fund raising
University of Cambridge Dental Practice Limited Dental services
Associated Trusts c
Cambridge Overseas Trust
Provision of scholarships, grants and other support for the
education of overseas students in the University
Cambridge Commonwealth Trust
Gates Cambridge Trust
Cambridge European Trust
Malaysian Commonwealth Studies Centre
in Cambridge
Cambridge Assessment subsidiary
undertakings
Cambridge Assessment Overseas Limited Overseas oce services
Cambridge Examinations Inc d Examination services
Cambridge ESOL Inc d Examination services
Fundacion UCLES Examination services
Mill Wharf Limited Training and consultancy
Oxford and Cambridge International
Assessment Services Limited
c Assessment services
Oxford Cambridge and RSA Examinations Examination and assessment services
RSA Examinations Board Assessment services
Sandonian Properties Limited Property holding
The West Midlands Examinations Board Examination services
Cambridge University Press subsidiary
undertakings
e
Academic Journal Publishing Pty Limited f Holding company
Australian Academic Press Pty Group Limited f Publishing and distribution
Cambridge Archive Editions Limited Publishing
Cambridge Knowledge (China) Limited g Representative oce
Cambridge Printing Services Limited Printing services
Cambridge University Press (Greece) EPE h Representative oce
Cambridge University Press (Holdings) Limited Holding company
Cambridge University Press India (Private) Limited i Publishing and distribution
Cambridge University Press Japan KK j Representative oce
Cambridge University Press Panama SA k Distribution
Cambridge University Press South Africa
(Proprietary) Limited
l Publishing and distribution
Cambridge-Hitachisoft Educational
Solutions PLC
m Electronic educational publishing
Editorial Edicambridge Cia Ltda n Representative oce
ELT Trading Limited o Publishing
Foundation e-Learning (Private) Limited p Publishing and distribution
HOTmaths Pty Limited q Web-based maths digital learning management systems
United Publishers Services Limited g Distribution
Notes
a Cambridge Programme for Sustainability Leadership (Australia) is incorporated in Australia and has
an accounting reference date of 30 June for commercial reasons. The eect of this is not material to
the consolidated accounts.
b Cambridge Programme for Sustainability Leadership (South Africa) is incorporated in South Africa.
c The Cambridge Foundation, the Associated Trusts and Oxford Cambridge and RSA Examinations
are exempt charities established by trust deeds (see note 34).
d Cambridge Examinations Inc and Cambridge ESOL Inc are United States non-stock non-prot
corporations.
e Cambridge University Press subsidiary undertakings have an accounting reference date of 30 April
for commercial reasons with the exceptions of the companies incorporated in India (31 March) and
Mexico (31 December).
f Academic Journal Publishing Pty Limited and Australian Academic Press Pty Group Limited are
incorporated in Australia.
g Cambridge Knowledge (China) Limited and United Publishers Services Limited are incorporated in
Hong Kong.
h Cambridge University Press (Greece) EPE is incorporated in Greece.
i Cambridge University Press India (Private) Limited is a 75% subsidiary incorporated in India.
j Cambridge University Press Japan KK is incorporated in Japan.
k Cambridge University Press Panama SA is incorporated in Latin America.
l Cambridge University Press South Africa (Proprietary) Limited is a 75% subsidiary incorporated in
South Africa.
m The University holds 60% of the issued share capital in Cambridge-Hitachisoft Educational
Solutions PLC.
n Editorial Edicambridge Cia Ltda is incorporated in Equador.
o ELT Trading Limited is incorporated in Mexico.
p Foundation e-Learning (Private) Limited is incorporated in India.
q HOTmaths Pty Limited is a 55% subsidiary incorporated in Australia.
The University has interests in a number of spin-out companies formed to exploit intellectual property rights
or inventions. These are included at valuation in xed asset investments (see note 14) and endowment assets
(note 15). In some cases the Universitys interest amounts to 20% or more of the share capital, and these
companies are listed below. As the University does not exercise a signicant inuence over these investments
and they are not intended to be held for the long term, they are not accounted for as associated undertakings.
Other undertakings where the Universitys investment amounts to 20% or more are also listed below. These are
not accounted for as associated undertakings as the eect on the nancial statements would not be material.
31 Principal subsidiary and associated undertakings and other signicant investments (continued)
Name % interest Principal Activity
BlueGnome Limited 20 Commercial exploitation of intellectual property
Cambridge CMOS Sensors Limited 24 Commercial exploitation of intellectual property
Cambridge Flow Solutions Limited 25 Commercial exploitation of intellectual property
Cambridge in America 22 Fund raising
Cambridge Superconductors Limited 20 Commercial exploitation of intellectual property
Inotec AMD Limited 25 Commercial exploitation of intellectual property
Microbial Technics Limited 23 Commercial exploitation of intellectual property
Sphere Fluidics Limited 54 Commercial exploitation of intellectual property
The CRISP Consortium Limited 45 Commercial exploitation of intellectual property
Vivamer Limited 58 Commercial exploitation of intellectual property
32 Related party transactions
The nancial statements of the University include transactions with related parties. In accordance with
FRS 8 Related Party Transactions these are disclosed where members of the Council disclose an interest in
a body with whom the University undertakes transactions which are considered material to the Universitys
nancial statements and / or to the other party. Due to the nature of the Universitys operations and the
composition of its Council, it is inevitable that the University will enter into transactions in the normal course
of business with Colleges, NHS Trusts, Research Councils, other grant-awarding bodies and other private and
public sector organisations in which members of the Council may have an interest. All transactions involving
organisations in which members of Council may have such an interest, including those summarised below,
are conducted in accordance with the Universitys nancial regulations and usual procurement procedures. A
register of the interests of the members of the Council is maintained. The University has taken advantage of
the exemption within FRS 8 and has not disclosed transactions with other Group entities where it holds 100%
of the voting rights.
Transactions with Colleges are summarised in note 33 below. Included within the nancial statements are
other transactions with the following related parties
Cambridge University Students Union
The President and the Education Ocer of Cambridge University Students Union were also members
of the Universitys Council for the 201112 nancial year. Under Statutes and Ordinances, Chapter II, the
University has discretion to provide nancial assistance to the Union and, in the year ending 31 July 2012,
provided a grant of 105,000 and made other payments totalling 11,000 for services provided. The
Union made payments to the University totalling 9,000 for network and other services provided.
Needham Research Institute
The Needham Research Institute is an independent foundation and registered charity governed by
a Board of Trustees that includes a member of the Universitys Council. Sta of the Institute are paid
through the Universitys payroll and the Institute reimburses the University the appropriate sum
each month. In the year ending 31 July 2012, the University received 190,000 from the Institute in
reimbursement of salary costs.
Gatsby Charitable Foundation
Lord Sainsbury of Turville, who was elected as Chancellor of the University in October 2011, is settlor of
the Gatsby Charitable Foundation (Gatsby) and, together with the Gatsby Trustees, actively involved in
setting the Foundations strategic direction and approving all activities. In 2006 the University approved
a proposal to establish a Sainsbury Laboratory for plant science in Cambridge, funding for which was
provided by Gatsby, which also agreed to provide research funds over a ten year period. In the year
ended 31 July 2012, Gatsby made a nal contribution of 1.4m to the costs of developing the Sainsbury
Laboratory, bringing the total Gatsby contribution to 74m. Research grants and contracts income for the
year includes 3.2m in respect of grants funded by Gatsby, for which funding received in advance at the
year-end amounted to 1.7m.
33 Colleges
There are 31 Colleges, each of which is an independent corporation with its own property and income.
Each College publishes its own nancial statements, in a form specied by the University.
During the year payments were made by the University from HEFCE funding in respect of the College fees
of publicly-funded undergraduates of 41.6m (2011: 40.8m). These payments are included as Payments
to Colleges in note 8 above. The University also made payments in respect of the College fees of
postgraduate students totalling 4.8m (2011: 4.4m). These payments are included in other operating
expenses. Other operating expenses also include 5.8m (2011: 5.4m) in respect of payments to the Isaac
Newton Trust, a charitable trust established by Trinity College, as contributions to a bursary scheme for
students of the University.
The Cambridge Foundation distributed third party donations to the Colleges totalling 3.1m (2011: 5.7m).
The payments are not included in the consolidated income and expenditure account.
During the year the University provided printing, network and other services to the Colleges for which the
Colleges paid a total of 2.6m (2011: 2.8m), and the Colleges provided accommodation, catering and other
services to the University for which the University paid a total of 6.8m (2011: 6.9m).
During the year the Colleges made donations to the University totalling 1.9m (2011: 2.0m) which were
credited to specic endowments.
Current asset investments include 44.4m (2011: 20.6m) held on behalf of six (2011: two) Colleges in the
form of CUEF units (see note 18).
Colleges Fund 2012 2011
000 000
Balance at 1 August 27 25
Contributions received from Colleges 3,675 3,498
Interest earned 3 4
Payments to Colleges (3,650) (3,500)
Balance at 31 July included in creditors 55 27
The Colleges Fund is administered by the University on behalf of the Colleges, who make all contributions
to and receive all allocations from the Fund. The transactions on the Colleges Fund are not included in the
income and expenditure account.
34 Connected charitable institutions
A number of charitable institutions are administered by or on behalf of the University and have been
established for its general or special purposes. As a result, under paragraph 28 of Schedule 3 to the Charities
Act 2011, these connected institutions are exempt from registration with the Charity Commission. Some of
the connected institutions are included as subsidiary undertakings in these consolidated nancial statements;
the others are not included in the consolidation since the University does not have control over their activities.
The movements in the year on these charities funds as reported in their own accounts were as follows:
Opening
Balance Income Expenditure
Market
value
increase
Closing
balance
m m m m m
Consolidated (see note 31)
Cambridge Overseas Trust 22.0 9.5 9.5 0.1 22.1
Cambridge Commonwealth Trust 84.6 6.3 6.0 0.2 85.1
Gates Cambridge Trust 172.3 6.7 6.2 0.5 173.3
Cambridge European Trust 0.7 0.1 0.6 - 0.2
Malaysian Commonwealth Studies Centre
in Cambridge

8.9

0.4

0.8

(0.1)

8.4
The Cambridge Foundation 5.5 43.8 43.0 - 6.3
Oxford Cambridge and RSA Examinations 74.5 122.7 112.8 0.1 84.5
Strangeways Research Laboratory 1.3 0.1 0.2 - 1.2
369.8 189.6 179.1 0.8 381.1
Fund balances are included in the consolidated
balance sheet as:
Expendable endowments 182.9 183.2
Permanent endowments 1.2 1.3
Reserves 181.4 191.6
Creditors: amounts falling due within one year 4.3 5.0
369.8 381.1
Opening
Balance Income Expenditure
Market
value
increase
Closing
balance
m m m m m
Not consolidated
Isaac Newton Trust, established by Trinity College
(see note 33) to promote education, learning and
research in the University (accounts drawn up to
30 June 2012)

24.8

8.8

10.1

(1.0)

22.5
University of Cambridge Veterinary School Trust,
for the support of veterinary education
in the University

1.4

0.4

0.2

-

1.6
One smaller scholarship trust 0.3 - - - 0.3
Registered clubs and societies:
Amateur Dramatic Club 0.1 0.2 0.2 - 0.1
Cambridge Eastern Education
and Development Society

-

0.2

0.2

-

-
Cambridge University Boat Club 1.6 0.3 0.3 - 1.6
Cambridge University Law Society - 0.1 0.1 - -
Cambridge University Polo Club 0.4 0.1 0.1 - 0.4
Cambridge University Real Tennis Club 0.1 0.2 0.2 - 0.1
Cambridge University Rugby Union
Football Club

0.8

0.6

0.7

0.1

0.8
392 smaller clubs and societies 1.9 2.6 2.3 - 2.2
31.4 13.5 14.4 (0.9) 29.6
35 HEFCE Access funds 2012 2011
000 000
Access to Learning Fund allocation 164 162
Disbursed to students (162) (162)
Contribution to administration costs (2) -
Balance unspent at 31 July - -
Access to Learning Fund grants are available for students: the University acts only as agent. The grants and
related disbursements are therefore excluded from the income and expenditure account.
36 Event after the balance sheet date: Bond issue
On 17 October 2012 the University issued 350m of 3.75% unsecured Bonds due October 2052 (the Bonds).
The Bonds were issued at 98.168% of their principal amount. The proceeds of issue, less directly attributable
transaction costs, amounted to 342m. Interest at 3.75% pa is payable on 17 April and 17 October each
year commencing on 17 April 2013. The Bonds are listed on the London Stock Exchange. Unless previously
redeemed, the Bonds will be redeemed at their principal amount of 350m on 17 October 2052. The Bonds
are subject to redemption, in whole but not in part, at their principal amount at the option of the University
at any time in the event of certain changes aecting UK taxation. The Bonds may also be redeemed at any
time at the option of the University, in whole or in part, at a Redemption Price to be calculated in accordance
with the issue prospectus, which would be no less than the principal price of the Bonds to be redeemed.
The proceeds of issue are for general corporate purposes, including investment in research facilities,
accommodation and other assets.
Contacts
Information for journalists
Communications
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Fax: +44(0)1223 330262
Email: [email protected]
www.admin.cam.ac.uk/oces/communications
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www.cantab.org
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