26 Mar 08

Colleges fund £56 million of the collegiate University’s academic staff costs and support a significant proportion of its research activity

The accounts of Oxford University’s colleges for the year to 31 July 2007 show a modest surplus at the operating level. Investment returns remained strong both absolutely (14.5 per cent over the year) and relative to benchmarks.

Oxford’s colleges are independent and self-governing.  They form an essential part of the University, to which they are linked in a federal structure. Colleges fund £56 million of the collegiate University’s academic staff costs, support a significant proportion of its research activity, provide 95 per cent of its student accommodation and are at the heart of its intellectual, cultural, sporting and social life.

On a combined gross income of £252 million, the colleges reported an operating surplus of £7.8 million. Surpluses on sales of assets boosted this to £15 million. The cost of delivering the colleges’ core activities (teaching and research; the provision of food and accommodation to college members; and the care of much of the built environment of the University) exceeds the income generated from them by approximately £100 million.

The shortfall is provided from the colleges’ own resources.  Endowments contributed £88 million. Conference profits and contributions to income from benefactors made up the balance.

Colleges’ endowments again performed well. On a starting net balance of £2.4 billion, the Colleges achieved a total return of 14.5 per cent over the year compared with a composite benchmark performance of 12.1 per cent. Fundraising contributed £36.3 million to endowments, £3.8 million to building projects and £11.1 million to College bursaries and other operating activities.

Commenting on the figures, Giles Henderson, Chairman of the Conference of Colleges, said: ‘The colleges are at the heart of what makes Oxford so special. Effective management of their endowments is key, and it’s encoraging to note that over the past five years aggregate investment returns have outperformed the composite benchmark by an average of 2.7 per cent per year.

‘For every pound that comes to us from public funding of UK and EU students, we contribute more than two pounds from our own resources. Without this income we could not develop our research strengths, cover our teaching costs or ensure comprehensive student support. The 2006–07 financial results show that Oxford’s Colleges are continuing to respond very positively to these challenges.’