03 Feb 09

Each of Oxford University's 36 colleges is independent and financially autonomous

Oxford University’s 36 independent colleges today publish their financial statements for the financial year ended 31 July 2008.

Although the colleges receive, via the University, some public funding to support their teaching and research activities, this funding covers less than half of the cost of these activities. The shortfall is funded from the colleges’ own resources, principally the return on endowments accumulated over the centuries.

Endowment transfers of £88m in 07–08 compared with fees, tuition income and research grants for the period amounting to £69m. The total return on endowment assets was –1.05%. Colleges also received £35m in new endowments. 

At year-end (July 2008) total endowments amounted to £2,611m, 3.3% lower than July 2007 (£2,702m), but still up on two years before (£2,414m in July 2006). 

Land and buildings account for one third of all endowment assets, and whereas the reported value of financial assets declined by 5.7%, that of real property rose by 2.6%. Property holdings tend to be concentrated in the older and wealthier foundations. The 19 colleges founded prior to the 19th century account for 92% of all property holdings. Of the 17 modern colleges, half hold no property assets at all.

Overall, the colleges returned a surplus of £10.4m on total income of £267m. Academic income rose by 5.6%. Donations and conference profits remain essential to the financial well-being of the colleges. In addition to the £35m contribution to endowments, colleges received £15m in income gifts and £10m in capital gifts. Conference profits added an estimated £10m.

Commenting on the accounts, Giles Henderson, Master of Pembroke College and Chairman of the Conference of Colleges, said: ‘These results show the resilience of the colleges in a deteriorating financial and economic climate. Without endowment income, the support of Old Members and other benefactors and the surpluses from conference activities it would be impossible to maintain the unique academic environment and teaching methods which the collegiate system provides.

‘Each college is different, and each adopts a strategy appropriate to its circumstances. This diversification has served the colleges well. 2008-09 will be a more difficult year, with the prospect of further falls in investment returns and asset values and a more challenging environment for fundraising and conference business, but most colleges are well placed to ride out the storm and we have an effective internal tax and transfer system to help those in difficulties.’