Wykeham Journal 2017 | Page 12

Bursar’s message Steven Little Bursar & Secretary to the Governing Body of donations for the endowment, which arguably should be deducted. In accounting terms, they have to be recognised as income, but in practice they have to be invested and, as a result, the money is not immediately available, though the investment income it will generate will benefit both current and future generations. On this basis, the College incurred a shortfall of £347,000. Each of the four areas of activity contribute to this result. Trading, Investments and Fundraising (excluding endowment) generate a net £1,897,000 between them. The school’s charitable operations produced a surplus of £437,000 before depreciation, but a deficit of £2,244,000 after. This reminds us that school fee income alone is insufficient to pay for the College’s primary objectives: education and bursaries, the Quiristers and Ancient Buildings. School fees and associated school income continue to produce by far the largest part of our income. Income from school fees grew by 4.5%, reflecting a 2.9% increase in September 2016, to £36,678, and the average number of pupils in the school increased from 691 to 701. The value of bursaries, scholarships and other awards also rose 3.6% to total £3,386,000. I will say more about bursaries at the end of this piece. Winchester College Enterprises had another good year, with increased take-up among summer schools, and trading income was up by £69,000 at £714,000. Financially, it has been a very reasonable, if not an especially exciting, year. All four of the sources of income I discussed at some length last year (School fees, Fundraising, Investment and Trading) produced more than the year before and this put the College in a strong position to spend where necessary on its pupils and staff, and on buildings, facilities and infrastructure. No Bursar should complain about a lack of excitement in the finances; surprises invariably mean bad news. The tables and charts that accompany this piece draw out the main elements, but space allows me to offer you only the briefest of pictures. In summary, the bottom line is that net incoming resources for the year were £2,332,000, £758,000 up on the previous year. This included £2,679,000 10  The Wykeham Journal 2017 Investment income grew sharply, by £506,000 to £2,495,000. The College re-invested the first tranche of proceeds from Barton Farm over summer/autumn 2016. Already having significant holdings in property and absolute return funds, with Ruffer and more recently also with AQR, we wished to take on more equity risk and achieved this through passive funds, managed by BlackRock, which produce higher levels of dividend income. Fundraising plays a critical role in the College’s financing. In total, the amount raised in the year was £3,514,000, up £317,000 on the previous year. The College remains extremely grateful to all donors. As previously noted much of this was new money for endowment, including £1,183,000 for the Bursary Fund, and a large legacy of £628,000 left to the Wykeham Fund, which supports the College’s three principal charitable