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Murray Edwards College
University of Cambridge

Reserves Policy

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Reserves Policy

Adopted by Council: November 2016
Review Date: Michaelmas Term 2021
Committee Ownership: Finance Committee

The College intends to continue to pursue its objects in perpetuity. Its activities require income support from its investments which include corporate capital, endowments, restricted and unrestricted reserves and funds. Unrestricted reserves can only be considered free reserves to the extent that they exceed the college’s tangible assets which are integral to its operations to deliver its charitable objectives. A substantial level of such reserves is necessary:

1. to permit the repayment of debt which stands at £13.5m which begins to fall due for repayment in 2025; and

2. although the college’s other income streams are reasonably stable in the short term, to provide support in the event of an unforeseen downturn in the college’s investment income arising from wider economic uncertainty of financial market shocks.

In addition the College’s reserves provide investment income to support its operations.

The policy and compliance with it will be reviewed annually during the production of the College Statutory Accounts and particularly in the event of material change, upwards or downwards, in the level of free reserves.