Treasurer’s Report At the time of writing, we are still some way away from having a final result for 2023-24 and we do not yet have confirmed valuations for our investments, but we do know enough to say with some confidence that 2023-24 is going to be a very good year for the college financially. This assessment is driven by two things. Firstly, the cost pressures that we have been struggling to contain over the last couple of years are receding, and secondly, and perhaps more significantly, the support we have received from our alumni and friends, always a distinguishing feature of Somerville, has been unusually strong this year. To take the easing of cost pressures first: general inflation, which peaked at 10% in October 2022, has fallen to 2%. During the period of maximum pressure we were careful to do as much as we could to insulate our students from the impact of these cost increases. The increases in student rent and food costs that we put through at Somerville were among the lowest of all the colleges. The pressure on utility costs which had taken our costs from £250k to £750k over the last couple of years is easing, and next year our utility bill will be around £400k. Strengthening of asset values moved the USS defined benefit pension scheme from a large deficit to a large surplus, allowing us to release the £2m provision against future contributions we had been required to hold and leading to a significant reduction in employer and employee ANDREW PARKER, COLLEGE TREASURER. PHOTO: JOHN CAIRNS contributions into the scheme. Similarly, our endowment investment with Newton increased over the 12 months by 11% from £37.4m to £41.8m. We do not yet have the year valuations from Oxford University Endowment Management scholars. Peggie followed that up this year with a gift of her but a similar movement in our investment with them would flat on Banbury Road, worth £1m. We are indebted to her. The increase our total endowment by £8-9m. We have also had year also brought news of a £3m legacy from the estate of our college houses valued this year and they have increased in our alumna Dr Christian Carritt, which will be used to support value by £0.8m. History teaching, music provision and medical scholarships at A positive picture for this year – but underlying pressures Somerville. We have also heard recently of a £0.5m legacy remain. UK tuition fees have been frozen since 2017 and are from Dr Trevor Hughes, husband to Catherine Hughes, and a now worth 40% less to us in real terms. This is not sustainable. long term friend and supporter of Somerville. We expect to The pressure on academic salaries and workload, and the receive this legacy in 2024-25. inequity in college provision across Oxford is ever present, Finally, and perhaps most significantly, some time ago we and tuition fees from overseas students remain a significant identified the pressing need for more tutorial rooms and spaces part of our income. Our numbers remain robust but other for group study as well as a proper long term home for the institutions are experiencing reducing numbers of overseas Oxford India Centre for Sustainable Development. We have students. We also face very major costs, as yet unfunded, if we are to move our college buildings to a net carbon position recently been fortunate to have secured the agreement of a by 2040. major donor which will enable us to fulfil this aspiration and we hope to be able to make an official announcement about this This has been an exceptional year in terms of the support we very soon. have had from alumni and friends. Last financial year finished with a gift of £0.9m from Dr Peggie Rimmer to be used to ANDREW PARKER set up a sanctuary fund to support displaced academics and August 2024 13