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The St Peter’s College Foundation Report & Financial Statements / 2011

Contents 1 – Chairman’s Statement 2 – Investment Committee Report 3 – Legal and Administrative Information 4 – Report of the Board 5 – Statement of Financial Activities 6 – Balance Sheet 7 – Notes forming part of the Financial Statements 8 – Independent Examiner’s Report 5 9 10 11 14 15 16 20 .

whose report is set forth on page 9.821 in 2011. Two formal meetings were held during the year. Given this background it is also pleasing to note that our net funds fell during the year by less than £50. but there were countless other meetings held during which ways in which the Foundation could be developed and the College supported were discussed and progressed. For this we are grateful to the Investment Committee under Charles Ind.1 Chairman’s Statement This has been a slower year as regards the growth of the Foundation. It also results from changes at the College where Bernadette Benati. Administration As the Foundation has grown in its size and its ambitions it has been agreed that coordination of the Foundation’s efforts in support of the College would be better achieved if the Foundation’s administrative back up were provided from within the College’s Development Office.500 in 2010 to £167. has been the excellent performance of the Foundation’s investment portfolio. the College Development Director. 5 . Against this background I am pleased to be able to report that the Foundation has greatly increased the support it has given to the College from £40. Trustees As ever. Investment Policy A major reason for the maintenance of the Foundation’s funding position. In part this reflects the continuing adverse economic climate. the Foundation remains dependant on the energy and commitment of its Trustees for which we remain extremely grateful. despite the greatly increased support of the College. moved on to new challenges.000. Left Linton Quad – close by the site of the new boiler installation for which the Foundation provided substantial funding. This has taken a little time to arrange but we have recently welcomed Kate Longworth to the role and look forward to working with her.

and ‘Digital Hardware Design for Very Large Scale Radio Astronomy Arrays’. Fran Lambrick is now in the final year of her doctoral research on community forestry in Cambodia. has been felt not only at the College. These seminars continue to be well attended by the Fellows. the ‘Dimensional Conventions of Space’. and the replacement of both has become an increasingly pressing need. This lead gift inspired others to give. several of whom have also received travel costs from the Foundation. investing in people at undergraduate. 7 . Topics in the past year have been as diverse as ‘the Assessment of Borderline Personality Disorder and Bipolar Disorder Patients’. of course. graduate and Senior Common Room level. Some projects which the Foundation supports have a certain glamour. History and Geography. funded by the Foundation. Once again the Foundation has funded intensive revision weeks for finalists in Modern Languages.1 Chairman’s Statement (cont’d) Right The Foundation funds a number of Reading Parties to help in preparation for finals. so the Foundation agreed to help get the project under way with a donation of £100. A further priority for the Foundation is to promote social mobility by providing financial support for students – thereby enabling as broad a range of society as possible to attend St Peter’s. An important focus of the Foundation’s charitable activities is. We have continued to meet the costs of the weekly graduate research seminars.000. Our major contribution in 2011 fell into the latter category! For some time the College’s boiler system and the structure that houses it have been under strain. and the project is now nearing completion. others less so. The impact of the Schools Liaison Officer post. 6 Projects Supported The Foundation exists to help the College’s growth and development in the broadest sense. enabling them to take their work into an increasingly global research community. Boiler replacement is not the sort of project which will excite individual donors.

5 million. risk assets generally under-performed in 2011 and. 12% by private equity and 10% by cash. the Foundation’s investment portfolio generated a positive return of 8. which continued to recover from its difficult start. driven by renewed concerns about global economic growth. This is broadly in line with the Foundation’s strategic asset allocation target. Two of the strongest performers in the portfolio were hedge fund investments generously donated by a former member of the College in 2008 – the Vulpes LAVA Fund. a manufacturer of optical components – also generously donated by a former St Peter’s member – which has more than doubled in value over the past two years. and underweight in fixed income. Overall. we are maintaining our long-term investment focus and balanced portfolio strategy.000 from the Sutton Trust for her cross-collegiate Pathways programme.5m) 1 · Alternative investments 2 · Quoted equity 3· Fixed income 4 · Private equity 35% 31% 12% 12% 10% 8 9 5 · Cash . As a consequence. Asian fund. equity arbitrage. the MSCI World equity index finished the year down 4. Again it is another example where a lead gift from the Foundation has enabled further fundraising success. the rest bringing groups to St Peter’s. doubts over the solvency of European banks. We look forward to working with the Development Office and the College to provide funding for imaginative projects which will add to the College’s growing reputation.2% in 2011 (excluding cash on deposit). In the past year Alice Wilby has run over 100 events – around two thirds at schools in deprived areas. Alice was recently awarded further funding of £50. 31% by quoted equity. Against this background. the loss of AAA status by the US government and flagging confidence in policy-makers and political leadership across the globe. the ongoing eurozone debt crisis. which we feel confident will deliver above-average capital appreciation over the longer term – whilst also generating sufficient income to fund meaningful projects for the College. markets remain fragile and the economic outlook is uncertain. The other major positive contributor was the Foundation’s investment in Special Opportunities Fund III. and generated a return of 17% during the year. although we are currently overweight in quoted equities. but across Oxford and beyond. In this context. As at 31 December 2011. despite a rebound in the fourth quarter.1 Chairman’s Statement (cont’d) 2 Investment Committee Report 2011 was a turbulent year for financial markets. a fund-of-funds investing in Bain-managed private equity and hedge funds. of which approximately 35% was represented by alternative investments. which is designed to help year 10-13 students from state schools and colleges make competitive applications to the University. Robin Hodgson Lord Hodgson of Astley Abbotts. a value-oriented fund focusing on Russian infrastructure stocks – which were up 12% and 24% respectively in 2011. CBE 19 June 2012 St Peter’s Foundation Net Assets 2011 (100% = £1. The Future The Trustees remain confident that there are many among the College’s alumni who would be attracted to the opportunity to find projects in which they could take a close personal interest – the concept of ‘venture philanthropy’.  This was a good outcome in the circumstances. relative to our long-term target – which is a reflection of our medium-term view on the relative attractiveness of these two asset classes. Other highlights included the realisation of the Foundation’s small direct private equity investment in EIS Optics.  There were also smaller positive contributions from the investments in fixed income (+4%) and quoted equity (+3%). the Foundation’s net assets amounted to approximately £1. in particular alternative investments (+14%) and private equity (+13%). and the Vulpes Russian Opportunities Fund. 12% by fixed income. a market neutral.3%. with each of the asset classes in the Foundation’s portfolio making a positive contribution to the overall return.

The company’s objects and principal activities are to promote the advancement of education and learning including but not limited to: · · · supporting initiatives which attract the widest range of potential students to apply to and join St Peter’s College. Appropriate systems or procedures to mitigate the risks that the charity faces will be introduced as the need arises. IM99 1RB 4 Report of the Board The Board presents its report and financial statements for the year ended on 31st December 2011. No further induction was necessary. Upper Church Street. Governance and Management Governing Document The organisation is a charitable company limited by guarantee. 4 Grosvenor Place. They have been made familiar with the activities of the Foundation and of its accounts. all transactions are approved by them. The members of the Board have been selected for their knowledge of and desire to support St Peter’s College. Secretary Howard Long. The charity is of recent formation and all activities are handled by Board members. and supporting and increasing financial resources available for teaching Mark Damazer Stephen Diggle* Lord Hodgson of Astley Abbotts CBE* Charles Ind* Dr Balazs Szendroi Charles Wilkinson* The main objectives and activities for the period focused on the establishment of the Foundation and raising initial donations. in the early stage of its activities. Structure.3 Legal & Administrative Information Board of Directors Reference and Administrative Information Charity Name The St Peter’s College Foundation Charity registration number 1107938 Company registration number 05303218 Registered Office 4 Grosvenor Place London SW1X 7HJ Dr Lawrence Goldman Jocelin Harris* Chairman’s Office Nova Capital Management Limited 1st Floor Cayzer House 30 Buckingham Gate London SW1E 6NN Independent Examiners Wingrave Yeats Partnership LLP 101 Wigmore Street. At present the Board has 8 members from a variety of professional backgrounds relevant to the work of the charity. Recruitment and Appointment of the Board The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles comprise the Board. and are responsible for the strategic direction and policy of the charity. Objectives and Activities In planning our activities for the year we kept in mind the Charity Commission guidance on public benefit at our trustee meetings. FCA. London SW1X 7HJ 10 *Member of Investment Committee 11 . W1U 1QU Bankers Kleinwort Benson Bank (Isle of Man) Limited St Georges Court. The Secretary also attends Board meetings but has no voting rights. Under the requirements of the Memorandum and Articles of Association the members of the Board are elected to serve for a period of three years after which they must be re-elected at the next Annual General Meeting and may be reappointed such that they can serve for a maximum of three terms in all. incorporated on 2 December 2004 and registered as a charity on 3 February 2005. Trustee Induction and Training All of the members of the Board are familiar with charitable organisations in general. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. Isle of Man. In the event of the company being wound up members are required to contribute an amount not exceeding £1. Organisational Structure The Board may have up to 10 members who meet half-yearly. Douglas. London. or more frequently as necessary. Achievements and Performance The Foundation has funded College activities and has continued with building its funds. Risk Management The Board are aware of the potential risks of operating the charity and. providing financial assistance to students in residence by grants or loans.

funded by donations received from them. Unless specific restrictions are placed by donors. This includes individuals with a long-term record of senior involvement in the financial sector. The Board is also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. who are directors for the purpose of company law and trustees for the purpose of charity law. Independent Examiners Wingrave Yeats Partnership LLP remains as the charitable company’s independent examiners and have expressed their willingness to continue in that capacity. the reserves of the Foundation will be unrestricted in nature. The strategy is to accept some exposure to short term volatility. This will be deducted from unrestricted reserves.821. Expenditure has been incurred of £179. This allows a more ambitious investment style which it is believed should. The Foundation has been funded by donations amounting to £23.E Director 13 . after gains on investments. Robin Hodgson Lord Hodgson of Astley Abbotts. These investments were donated by him. for the financial year. Responsibilities of the Board 12 Company law requires the Board to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources. This is explained in more detail in the Investment Committee’s report. of which £167. In preparing those financial statements. the Trustees are likely to designate the reserves to match their investment strategy and to that extent. and prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charitable company will continue on that basis. However. C. who served during the year and up to the date of this report are set out on page 10. make judgments and estimates that are reasonable and prudent. Approved by the Board on 19 June 2012 and signed on its behalf by: The Board is responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable it to ensure that the financial statements comply with the Companies Act 2006. leaving a deficit in the year of £113. Investment Policy The Foundation has established an Investment Committee from among its Trustees.4 Report of the Board (cont’d) Financial Review Outcome for the period.821 was for grants to St Peter’s College. by seeking major donations. This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (issued in March 2005). including income and expenditure. Lord Hodgson was a shareholder and Mr. Mr Diggle is a Director of a company that manages two of the investment funds where units in them are held by the Foundation. reserves will not be regarded as available for meeting expenditure. Plans for Future Periods The charity plans to continue the activities outlined above in the forthcoming years subject to satisfactory funding arrangements. so as to create a fund that will generate a sustainable income to enable them to meet its objectives. Directors do not take part in discussions or decisions where they have a conflict of interest.006.606. The Board ensures that any conflicts of interest are appropriately disclosed. Members of the Board Members of the Board. provide above average growth in value. Harris was a director and shareholder of companies in which the Foundation held shares.579 and interest and dividends have been earned of £41.B. Reserves Policy The Board intends to build the reserves of the Foundation. the Board should follow best practice and: · · · select suitable accounting policies and then apply them consistently. over time.

194 109.991 1.260 Total Funds 11 Net (outgoing)/incoming resources before other recognised gains and net movement on funds Realised gain on investments Unrealised gain/(loss) on investments Total funds brought forward Total funds carried forward 11 For the year ending 31 December 2011 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.210 1.318 10. The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.553) 1.210 Incoming Resources Incoming Resources from generated funds Voluntary income: Donations 2 23.106) 208.335.991 1.544. Robin Hodgson Lord Hodgson of Astley Abbotts. The directors acknowledge their responsibility for: i) ensuring the company keeps accounting records which comply with section 386.497.5 Statement of Financial Activities (including Income & Expenditure Account) for the Year Ended 31 December 2011 6 Balance Sheet as at 31 December 2011 Notes Unrestricted Funds 2011 £ Unrestricted Funds 2010 £ Notes Fixed assets Investments 8 2011 £ 1.579 41.387 1.621 66. All incoming resources and resources expended derive from continuing activities.407 Activities for generating funds: Investment Income Total incoming resources Resources expended Costs of generating funds Costs of generating voluntary income and administration Charitable activities Governance costs Total resources expended 3 Current Assets Cash at bank and in hand Debtors 9 Creditors: amounts falling due within one year 10 Net Current Assets Net Assets Unrestricted Funds General funds 9.544.821) 36.355.497.497.860 179.210 1.210 1. Approved by the Board on 19 June 2012 and signed on its behalf by: (113.147 20.991 2010 £ 1.519.175 (2.506 (38.850 138. and which otherwise comply with the requirements of the Companies Act relating to accounts.210 The statement of financial activities includes all gains and losses in the period.141 1. in accordance with the requirements of section 396.723 7.139 40.B.418 (4.500 1. so far as is applicable to the company. and of its profit or loss for the financial year.110 1. C.325 31.E Director 14 15 .213 31.185 78.823 200.544.821 1.325 167.006 24.544. and ii) preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year.497.991 43.000) 142.544.277 1. The accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.606 65.

500 Direct Direct Direct 11. · Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. Exchange differences are taken into account in arriving at the net incoming resources for the year. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction.750 4.860 11.000 1. The costs of minor additions or those costing below £1.621 e) Fixed assets Fixed assets (excluding investments) are stated at cost less accumulated depreciation.000 are not capitalised. b) Fund accounting · Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Costs relating to a particular activity are allocated directly.711 9. All costs are allocated between the expenditure categories of the SoFA on a basis designed to reflect the use of the resource.711 167. donations and gifts and is included in full in the Statement of Financial Activities when receivable.189 2.000 27.260 Bank charges and sundries Transactions Exchange loss/(gain) Transactions 16 17 Totals .000 20. The accounting policies have been applied consistently throughout the year.000 27.860 11. 2 / Donations All donations received in the period were unrestricted and were received from corporate or private donors. Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. a) Basis of accounting The financial statements have been prepared under the historical cost convention. 3 / Total Resources Expended See table below d) Resources expended Expenditure is recognised on an accrual basis as a liability is incurred.006 16. Grants. Unrestricted funds include a revaluation reserve representing the restatement of investment assets at market values. and in accordance with the Companies Act 2006 and the Statement of Recommended Practice: Accounting and Reporting by Charities issued in March 2005.000 100.7 Notes forming part of the Financial Statements for the Year Ended 31 December 2011 1 / Accounting Policies The principal accounting policies are summarised below.520 375 548 56 1. · Designated funds are unrestricted funds earmarked by the Board for particular purposes.000 4. others are apportioned on an appropriate basis.403 446 (93) 66. Investment income is included when receivable.400 794 4. f) Cash flow statement The trustees have taken advantage of the exemption in Financial Reporting Standard No 1 (revised) from including a cash flow statement in the financial statements on the grounds that the charity is small. Overseas research support Direct Independent review Support costs allocated to activities Staff costs Accountancy fees Insurance Office costs Usage Usage Usage Usage 4. and is reported as part of the expenditure to which it relates: · · · · Costs of generating funds comprise the costs associated with attracting voluntary income.325 Direct 4. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Incoming resources from grants.000 100. Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life.750 4.115 2. Investments held as fixed assets are revalued at mid-market value at the balance sheet date and the gain or loss taken to the Statement of Financial Activities.500 5. The value of · · services provided by volunteers has not been included in these accounts. are accounted for as the charity earns the right to consideration by its performance. are recognised when the charity becomes unconditionally entitled to the grant. tuition and undergraduate support Graduate support Schools liaison officer College building project Direct Direct Voluntary income £ Support to St Peter’s College £ Governance £ 2011 Total £ 2010 Total £ 6.000 18. Donated services and facilities are included at the value to the charity where this can be quantified.500 6. g) Foreign currencies Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date.571 1. Basis of allocation Costs directly allocated to activities Reading parties Bursaries.520 375 548 56 1.115 2.000 18.860 179. Expenditure includes any VAT which cannot be fully recovered. as modified by the inclusion of fixed asset investments at market value. where entitlement is not conditional on the delivery of a specific performance by the charity. c) Incoming resources All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy.571 1. which in all cases is estimated at 4 years.821 1. where related to performance and specific deliverables. The following specific policies are applied to particular categories of income: · · Voluntary income is received by way of grants.

7 / Taxation As a charity. No tax charges have arisen in the Charity.200.575) 36.000 or approximately £3. Where they are not readily available. at a cost of £4.335.355.277 1.923). The St Peter’s College Foundation is exempt from tax on income and gains falling within sections 471 – 488 of the Corporation Tax Act 2010 or s256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. the market values for investments have been taken from latest fund manager reports or from published sources. (2010 – employed for 12 months.850 11 / Movement in Funds There is only one fund.000 in Special Opportunities Fund III Limited.000 2.029 (2010: £1. No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the period.175 18 .415. All shares held have been revalued to market value at the year end and foreign currency values have been restated at year end exchange rates. No allowances or reimbursed expenses were made to the Trustees during the period. 9 / Debtors Other debtors 2011 (£) 2010 (£) 10 / Creditors: Amounts Falling Due within One Year Other creditors and accruals 2011 (£) 2010 (£) 4. leaving a forward commitment of US$5.621) 5 / Staff Costs and Numbers There was one part time member of staff employed for the first quarter of the year. cost £16. the Board has taken estimates of valuation. Where possible.7 Notes forming part of the Financial Statements for the Year Ended 31 December 2011 (cont’d) 4 / Net Incoming Resources for the Period This is stated after charging: Fee for Independent Examiner’s Review: £1.860 (2010 .189).115.325 31. See note 12 for details of investment commitments. At the year end US$495.£1. which is unrestricted and the movements on that fund are shown on the face of the Statement of Financial Activities.000 had been invested. 13 / Ultimate controlling party In the opinion of the Trustees there is no one ultimate controlling party of the Charity.823 (47. 8 / Investments At Valuation At 31 December 2010 Investments purchased in year Proceeds of sale during the year Realised gains during the year Revaluation adjustment during the year At 31 December 2011 £ 1. 6 / Trustee Remuneration & Related Party Transactions No members of the Board received any remuneration during the period.418 10.401.106 19 7. All investments are held for the purposes of the General Fund. The equivalent cost of the investments as at 31 December 2011 was £1. 12 / Commitments The Foundation is committed to an investment of up to US$500.

It also includes consideration of any unusual items or disclosures in the accounts. and seeking explanations from you as trustees concerning any such matters. and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below. and · to prepare accounts which accord with the accounting records. 20 . the requirements: · to keep accounting records in accordance with section 386 of the Companies Act 2006. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. Independent examiner’s statement In connection with our examination. Respective responsibilities of trustees and examiner The trustees (who are also the directors of the company for the purposes of company law) are responsible for the preparation of the accounts. comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities have not been met. in our opinion. it is our responsibility to: · · · examine the accounts under section 145 of the 2011 Act. and state whether particular matters have come to my attention. We are qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants of England and Wales. Having satisfied ourselves that the charity is not subject to an audit under company law and is eligible for independent examination. London W1U 1QU Date: 22 June 2012 Basis of independent examiner’s statement Our examination was carried out in accordance with general Directions given by the Charity Commission.8 Independent examiner’s report to the trustees of The St Peter’s College Foundation We report on the accounts of the company for the year ended 31 December 2011 which are set out on pages 14 to 19. follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. in any material respect. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. Wingrave Yeats Partnership LLP Member of the Institute of Chartered Accountants of England and Wales 101 Wigmore Street. attention should be drawn in order to enable a proper understanding of the accounts to be reached. no matter has come to our attention: 1) which gives me reasonable cause to believe that. or 2) to which. The procedures undertaken do not provide all the evidence that would be required in an audit.

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ox.Charity number 1107938 Company number 05303218 www.uk .ac.spc.