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2023-12-31-accounts

Newbold College (Trading as Newbold College of Higher Education)

Company No: 3143237 Registered Charity No (England and Wales): 1052494

GOVERNORS’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2023

Newbold College

Contents

Page
Governors 1
Reference and administrative details ofthe Charityand advisers 2
Governors’ report 3-7
Independent auditor's report 8-10
Statement offinancial activities 1
Balance sheet 12
Statement ofcash flows 13
Notestothefinancialstatements 14-27

Newbold College Governors For the year ended 31 December 2023

Daniel Duda

Chair

Eglan Brooks Stephen J. Currow Secretary Robert Csizmadia Appointed 08/06/2022 Nenad Jepuranovic lan Sweeney Patrick Johnson Rob De Raad Kayle de Waal Victor Marley Emmanuel Osei Resigned 08/08/2023 Kirk Thomas Appointed 08/082023 Styrkilr Dramstad Resigned 01/09/2023 Nina Kristel Helgesen Myrdal Appointed 01/09/2023 lan Redfern Dragan Grujicic Carsten Waern Paul Thompson Lorraine McDonald Hongisto, Leif Resigned 01/09/2023 Ingalill Gimbler Berglund Appointed 01/09/2023 Natalie Henry George Kumi

Page: 1

Newbold College Reference and administrative details of the charity and advisers For the year ended 31 December 2023

Company number 3143237

Charity number 1052494

Bankers HSBC Bank Ltd Bracknell Berks RG12 1DN

Solicitors Clifton Ingram LLP Solicitors 22-24 Broad Street Wokingham Berkshire RG40 1BA

Auditors Moore Kingston Smith LLP 4 Victoria Square St Albans Herts AL1 3TF

Registered Office St Marks Road Binfield Bracknell Berks RG42 4AN

Page: 2

Newbold College Governors’ Report For the year ended 31 December 2023

The Governors (who are also directors of the Charity for the purposes of the Companies Act) submit their annual report and the audited financial statements of Newbold College of Higher Education (the Company) for the year ended 31 December 2023. The Governors confirm that the annual report and financial statements of the Company comply with current statutory requirements, the requirements of the Company's governing document and the provisions of the Statement of Recommended Practice (SORP) "The FRS 102 Charities SORP, the Companies Act 2006 and Charities Act 2011”.

STRUCTURE, GOVERNANCE AND MANAGEMENT

CONSTITUTION

The Company is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 03 January 1996, much later than its start in 1901 (though with a different name) as a higher education provider.

The Company's mission is to foster a Christ-centered and diverse learning community that prepares students for service in an ever-changing world. This includes, but is not limited to, training pastors and other professionals for employment by the Seventh-day Adventist Church in Europe.

There have been no changes in the objectives since the last annual report.

METHOD OF APPOINTMENT OR ELECTION OF GOVERNORS

The owners of the College have delegated the responsibility for Newbold College of Higher Education to the Board of Governors. During the year under review, Governors came from within the British Isles and a number of neighbouring nations, reflecting the diversity of the student body.

ORGANISATIONAL STRUCTURE AND DECISION MAKING

The Board is a governing and policy-making body, which is responsible for formulating and adopting the strategy for the College as well as setting key performance indicators (KPIs). It is not responsible for the day-to-day running of the College. Its work is to balance the need of conformance (i.e. compliance with legislation, regulation and codes of practice - both within the Church and academia) with performance (i.e. improving the performance of the organisation through strategy formulation and policy-making). Scheduled meetings in 2023 were held in January, March, May, September, and October. Please note that the governance structure changed with effect from the beginning of 2021, with the former Executive Committee having been disbanded and with the full Board of Governors subsequently meeting up to six times per annum rather than twice as heretofore.

The Trans-European Division (TED) Executive Committee endorses the Board's appointment of the Principal and this role is critical to ensuring effective College governance. As the link between Board and management, the Principal is responsible for ensuring that policies are implemented on a day-to-day basis. The Principal communicates the strategy and KPIs to the College’s Senior Leadership Team which comprises the Chief Financial Officer, the Academic Registrar and the Principal, and which is responsible for reporting back to the Board. His or her regular reports should enable the Board to monitor organisational performance. The Principal is the only employee of the College who is an ex officio member of the Board of Governors and therefore has voice and vote at Board meetings with the exception of any agenda item which might deal with his or her salary. Although the Principal is the link between Board and management, the Board is responsible for good governance by ensuring that sound systems of risk management and robust internal controls are in place throughout the College organisation.

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Newbold College Governors’ Report (continued) For the year ended 31 December 2023

RELATED PARTY RELATIONSHIPS

The Company is controlled by the Trans-European Division of the General Conference of Seventh-day Adventists. The TED supports the College with core funding and management consultation.

RISK MANAGEMENT

The Governors have assessed all risks to which the College is exposed, both from internal and external sources, and are satisfied that systems and procedures are in place to mitigate the Company's exposure to possible jeopardy.

OBJECTIVES AND ACTIVITIES

POLICIES AND OBJECTIVES

The main strategic priorities of Newbold College of Higher Education are to provide high-quality, creative and challenging learning opportunities; promote and mentor the spiritual growth of students and staff; nurture and support students throughout their learning experience; and promote opportunities for service to meet the needs of others. Further, it is important to the College that it fulfils the needs of the Seventh-day Adventist Church in Europe for educated pastors and lay people. This is achieved by educational experiences that enhance all aspects of student life - the mental, physical, emotional, environmental and spiritual. During the year ending 31 December 2023 the College offered a BA Hons degree in Biblical & Pastoral Studies; a Graduate Diploma in Biblical & Pastoral Studies; an MA degree in Theology; and a

STRATEGIES FOR ACHIEVING OBJECTIVES

The College aims to deliver educational experiences of the highest quality and at the most manageable costs possible. The Board of Governors and the Administration of the Company actively seek to celebrate diversity in its many forms, value each individual and ensure that each member of academic staff, professional services staff and the student body find joy in their work and association together.

Our strategies include: the development and maintenance of a three-year strategic and overarching wholeof-college operational plan; the development and maintenance of action plans for the findings of the University of Wales Trinity Saint David, the Office for Students, the British Accreditation Council for Independent Further and Higher Education and the Accrediting Association of Seventh-day Adventist Schools, Colleges and Universities; ensuring sustainability in the College's academic programmes and operations; attracting and developing quality staff; implementing a three-year budget framework and fiveyear financial and capital plans; building robust international enrolments; developing property holdings to increase income; building commercially astute and profitable College businesses; building productive relationships with alumni and potential sponsors; and applying understanding of and respect for cultural differences in diverse environments.

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Newbold College Governors’ Report (continued) For the year ended 31 December 2023

ACTIVITIES FOR ACHIEVING OBJECTIVES

During the year under review, the College was organised to accomplish its objectives in the following manner:

ACHIEVEMENTS AND PERFORMANCE

GOING CONCERN

After making appropriate enquiries, the Governors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

REVIEW OF ACTIVITIES

This report covers the period 01 January 2023 to 31 December 2023.

Newbold continues to deliver programmes offered by the Centre of Ministry and Mission. These include the Bachelor of Arts (Biblical and Pastoral Studies), Graduate Diploma in Theology (Biblical and Pastoral Studies) the MA in Theology, and the PG Certificate in Mission. These programmes are validated by UWTSD. The institution is also accredited by the Association of Seventh-day Adventist Schools, Colleges, and Universities [AAA]. In September 2021, following Newbold’s submission of revised programmes, the UWTSD extended the validation of these programmes for a further five years. The validation of the institution by UWTSD was extended in November 2022 for a further five years.

During the year under review, representatives of the College attended Home Office/British Accreditation Council/Quality Assurance Agency seminars in the College's endeavours to comply with immigration regulations, maintaining a Home Office Sponsor Licence for Tiers 2, 4 and 5. To this end it sought to comply with all legislation regarding CAS (Confirmation of Acceptance for Studies), timetabling, and attendance.

During 2023 the College received £28,500 donations and legacies to support operations and worthystudent scholarships.

Page:5

Newbold College Governors’ Report (continued) For the year ended 31 December 2023

FACTORS RELEVANT TO ACHIEVE OBJECTIVES

Important factors of Newbold's success are the professional success of its graduates and positive word-ofmouth comments by satisfied students and dedicated staff. The Government's restrictions on UK entry make it increasingly challenging for students to obtain visas to enter the country and study at Newbold College of Higher Education. The restrictions which occurred at the end of 2020 as a result of the Brexit process are under constant review.

FINANCIAL REVIEW

RESERVES POLICY

The reserves policy of Newbold College of Higher Education is that a working capital of six months' operating expense, in addition to allocated funds, be maintained. This has been achieved in 2023.

The Charity had unrestricted reserves of £6,364,134 (2022: £5,846,402) and total reserves of £11,708,768 (2022: £11,344,907).

FUTURE FUNDING & FINANCIAL SUPPORT

The College relies upon its owners, the Trans-European Division of the General Conference of Seventh-day Adventists, to supplement its income, just as most universities in the UK are reliant upon government support. The aim, however, is to grow much more financially self-sufficient through donations, endowments and creating funding streams beyond that of tuition.

PLANS FOR THE FUTURE

FUTURE DEVELOPMENTS

The Governors intend to continue meeting the Company's objectives by operating this College of Higher Education.

Rigorous steps have been taken to improve cashflow and working capital to ensure the survival of the institution.

Further upgrade of the physical plant and campus renewal initiatives have been prioritised which will be funded through asset management and development. A Property Investment Committee has been established to look at the best possible use of other buildings and land. Discussions are continuing.

GOVERNORS' RESPONSIBILITIES STATEMENT

The Governors (who are also directors of Newbold College for the purposes of company law) are responsible for preparing the Governors’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice.)

Company law requires the Governors to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Governors are required to:

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Newbold College Statement of Governors’ Responsibilities For the year ended 31 December 2023

The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Governors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Disclosure to Auditors

So far as each of the Governors is aware at the time the report is approved:

Auditors reappointment

The auditors are deemed to be reappointed under section 487(2) of the Companies Act 2006 This report was approved by the Governors on 19 May 2024 and signed on their behalf by:

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Rino/ Ar ol
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Daniel Duda, PhD
Chair of the Board of Governors
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Date: | q| al 24
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Newbold College Independent Auditors’ Report to the Governors of Newbold College

Opinion

We have audited the financial statements of Newbold College (the company) for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the audit of financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Newbold College Independent Auditors’ Report to the Governors of Newbold College

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 require us to report to you if, in our opinion

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 7 and 8, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial

The trustees have elected for the financial statements to be audited in accordance with the Charities Act 2011 rather than the Companies Act 2006. Accordingly we have been appointed as auditors under section 144! of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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Newbold College Independent Auditors' Report to the Governors of Newbold College

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

(2. ()JQan 4 VictoriaSt SquareAlbans Roger Ogden, Senior Statutory Auditor Herts for and on behalf of Moore Kingston Smith LLP, Statutory Auditors AL1 3TF Date: 22] a| 24

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Newbold College Balance sheet as at 31 December 2023

Notes 2023 2022
£ £
Fixed Assets
Tangible fixed assets 14 5,546,899 5,587,954
5,546,899 5,587,954
Current Assets
Stock and work in progress 38,235 22,606
Investments 13 246,257 244,216
Debtors
Cash at bank and in hand		 15 6,783,703
493,820		 6,408,190
591,559
7,562,015 7,266,571
Creditors: Amounts falling due
within one year 16 532,146 637,118
Net CurrentAssets 7,029,869 6,629,453
Provision for liabilities 12 868,000 872,500
NetAssets 11,708,768 11,344,907
Funds
Endowment 18 2,614,140 2,681,691
Restricted
Unrestricted		 18
18		 2,730,494
6,364,134		 2,816,814
5,846,402
11,708,768 11,344,907

The Governors consider that the company is entitled to exemption from the requirement to have audit under the provisions of section 477 of the Companies Act 2006 ("the Act") and members have not required the company to obtain an audit for the year in question in accordance with section 476 of the Act. However, an audit is required in accordance with section 144 of the Charities Act 2011.

The Governors acknowledge their responsibilities for complying with the arrangements of the Companies Act 2006 with respect to accounting records and the preparation of the financial statements.

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Approved and authorised for issue by the Board of Governors on t4 Ma“fos 2024,
and signed on its behalf by: 7
Drnilhecta ~ a7 hf ? can/
Chair of the Board of Governors / Stephen Currow. _
Company number: 3143237 / ccountable Officer
Charity number: 1052494 4
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The notes on pages 14 to 27 form part of these accounts.

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Newbold College Statement of Financial activities For the year ended 31 December 2023

2023 2023 2022
Unrestricted
Funds		 Restricted
Funds		 Endowment
Funds		 Total Funds Unrestricted
Funds		 Restricted
Funds		 Endowment
Funds		 Total Funds
Notes
£ & E £ £ £ e E
Income and Expenditure
Income andendowments from
Donatlons and legacies
Charitable activities
Investments		 2
3
5		 1,586,962
2,186,961
9,043		 3,625
-
1,074		 .
.
-		 1,590,587
2,186,961
10,117		 1,602,418
1,739,700
936		 26,334
753
271		 -
-
-		 1,628,752
1,740,453
1,207
3,782,966 4.699 - 3,787,686 3,343,054 27,358 - 3,370,412
Expenditure on:
Raising funds
Charitable activities
Goavemance		 7
8
9		 28,582
3,184,332
39,557		 -
92,194
-		 .
79,139
-		 28,582
3,355,666
39,557		 11,236
3,025,283
34,782		 -
820,200
-		 -
98,465		 11,236
3,943,948
34,782
TotalResources Expended 11 3,252,472 92,194 79,139 3,423,805 3,071,301 820,200 98,465 3,989,966
Net(Outgolng)/Incoming Resources 530,495 {87,495} (79,138) 363,861 271,753 (792,842) (98,465) (619,554)
Transfers betweenfunds (12,763) 1,175 11,588 - (48,791) 113,429 (66,638) -
NetMovement InFunds 617,732 (86,320) (67,551) 363,864 224,962 (679,413) (165,103) (619,554)
Reconciliation offunds
Fund balances brought forward at
01 January		 5,846,402 2,616,814 2,681,691 11,344,807 5,621,440 3,496,227 2,846,794 11,964,461
Fund balances carried forward at
31December 6,364,134 2,730,494 2,614,140 11,708,768 5,846,402 2,816,814 2,681,691 11,344,907

There were no recognised gains and losses other than those included In the statement of financial activitles,

All activilles relate to continuing operations.

The notes on pages 14 to 27 form part of these financial statements.

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Newbold College Statement of Cash Flows For the year ended 31 December 2023

2023 2022
£ £
Cash flows from operating activities
Net (Expenditure)/ income for the year 363,861 (619,554)
Adjustments for:
Depreciation oftangible fixed assets 315,065 318,393
Interest received (10,117) (1,207)
Changes in working capital:
Increase in debtors (375,513) (164,816)
Increase/(decrease) in creditors (109,472) 753,163
Decrease/{increase) in stocks (15,629) (9,821)
Net cash (used in) /generated by operating activities 168,195 276,158
Cashflows from investing activities
Purchase of Investments (2,041) (271)
Purchase offixed assets (274,010) (195,783)
Interest received 10,117 1,207
Net cash from investing activities (265,934) (194,847)
Change in cash and cash equivalents in the year (97,739) 81,311
Cash and cash equivalents at beginning ofyear 591,559 510,248
493,820 591,559

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1 Accounting Policies

1.1. Basis of preparation

Newbold College Notes to the Financial Statements For the year ended 31 December 2023

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The company is a public benefit entity for the purposes of FRS 102 and a registered charity established as a company limited by guarantee and therefore has also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP), the companies Act 2006 and Charities Act 2011.

The charity is a company limited by guarantee. The members of the company are defined in the Articles of Associations and include members of the Governors named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

The Governors have assessed whether the use of going concern is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern. The Governors have made this assessment for a period of at least one year from the date of the approval of these financial statements. In particular, the Governors have considered the charitable company's forecasts and projections and have taken account of pressures on fee income. After making enquiries, the Governors have concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.

1.4 Incoming resources All income is recognised when there is entitlement to the funds, the receipt is probable and amount can be measured reliably.

Income by way of donations and gifts to the charity is included in full in the statement of financial activities when received. Intangible income is not included unless it represents goods or services which would have otherwise been purchased.

Legacies are monitored from the time of notification to their final receipt. They are only included in the financial statements when there is sufficient evidence that the legacy will be received and the value can be measured with sufficient reliability.

1.5 Fund accounting Restricted funds are those which are to be used for the specified purposes as laid down by the donor. Expenditure which meets these criteria is allocated to the appropriate fund.

Unrestricted funds are donations and other income received or generated for the furtherance of the objects of the charity without specified purposes and, therefore, are available as general funds.

Endowment funds are income and expenditure relating to the land & buildings held for the primary purpose of the Charity which include the Newbold College Campus, Lecture Halls, Library, Administrative Buildings and Student Halls of Residence.

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Newbold College Notes to the Financial Statements For the year ended 31 December 2023

1 Accounting Policies (Continued)

1.6 Grant-making policies

The Governors allocate grants in accordance with the objects set out in the Memorandum and Articles of Association of the charitable company, which are summarised in the Governors' Annual Report.

Staff costs and overhead expenses are allocated to activities on the basis of time spent on those activities. Resources expended are included in the Statement of Financial Activities on an accruals basis.

Governance costs are those incurred in connection with administration of the charitable company and compliance with constitutional and statutory requirements.

All costs include value added tax where applicable.

1.8 Risk mitigation

The company's directors have given consideration to the major risks to which the charity is exposed and established systems or procedures in order to manage those risks.

1.9 Foreign Currency Translations

Transactions denominated in foreign currencies are translated into Sterling at the rate of exchange ruling at the date of the transaction. Assets and liabilities in foreign currencies are translated into Sterling at the rates of exchange ruling at the end of the financial year. All exchange differences are dealt with in the statement of financial activities.

Depreciation is provided on tangible fixed assets in order to write off each asset over its expected economic life. The rates of depreciation applied to each class of asset are:

Functional Land and Buildings 1.3% per annum cost basis Office fixtures and equipment 5% to 20% per annum cost basis Other Land and Buildings 1.3% per annum cost basis

Items of furniture and equipment costing less than £1000 each are treated as an expense on acquisition.

1.11 Classification of Land and Buildings

Functional Properties - Land and Buildings held for the primary purpose of the charity, the Newbold College Campus, Lecture halls, Library, Administrative Buildings and Student Halls of Residence, are considered to be effectively endowment assets and are shown at cost less attributable depreciation. Other Properties - Land and Buildings not held for the primary purpose of the charity but held by the charity for its own general purposes and not for their investment potential, comprise mainly tenanted domestic dwellings .

1.12 Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant condition will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the conditions are met. Where a grant does not specify performance conditions, it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised asa liability.

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Newbold College Notes to the Financial Statements For the year ended 31 December 2023

1 Accounting Policies (Continued)

Following the closure of the Seventh-day Adventist Retirement plan in December 2013, pension are now provided in terms of the national Auto-Enrolment requirements and invested in a Group Personal Pension Plan through Legal and General.

1.15 Financial Instruments

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.

The Charity makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, the Governors consider factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

The annual depreciation charge for fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets . The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investment, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the property, plant and equipment.

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Newbold College Notes to the Financial Statements For the year ended 31 December 2023

2 Income from donations and legacies

2 Income from donations and legacies
Unrestricted Restricted Endowment Total
Funds Funds Funds 2023
£ £ £ £
2023
Operating grants from parent organisation 750,000 - - 750,000
Special grants from parent organisation 812,068 - - 812,068
1,562,068 - - 1,562,068
Donations 24,894 3,625 - 28,519
1,586,962 3,625 - 1,590,587
Unrestricted Restricted Endowment Total
Funds Funds Funds 2022
£ £ £ £
2022
Operating grants from parent organisation 750,000 - - 750,000
Special grants from parent organisation 828,741 - - 828,741
1,578,741 - - 1,578,741
Donations 23,677 26,334 - 50,011
1,602,418 26,334 - 1,628,752
3 Income from charitable activities
Unrestricted Restricted Endowment Total
Funds Funds Funds 2023
£ £ £ £
2023
Tuition Income §22,336 - - §22,336
Accommodation and Lodging Income 2,159 - - 2,159
Rental Income 1,271,725 - - 1,271,725
Departmental Income 169,954 - - 169,954
Other Income 220,787 - - 220,787
2,186,961 - - 2,186,961
Unrestricted Restricted Endowment Total
Funds Funds Funds 2022
£ £ £ £
2022
Tuition Income 508,680 - . 508,680
Accommodation and Lodging Income 2,159 - - 2,159
Rental Income 1,052,108 - - 1,052,108
Departmental Income 98,487 - - 98,487
Other Income 78,266 753 - 79,019
1,739,700 753 - 1,740,453

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Newbold College Notes to the Financial Statements For the year ended 31 December 2023

4 Details of Grant and Fee Income
2023 2022
£ £
Fee Income fortaught awards(exclusive ofVAT) 500,324 498,360
Fee Income forfrom non-qualifying courses (exclusive ofVAT) 22,012 10,320
Total Grant and fees 522,336 508,680
5 Income from Investments
Unrestricted Restricted Endowment Total
2023 Funds Funds Funds 2023
£ £ £ £
Bank Interest 9,043 1,074 - 10,117
Unrestricted Restricted Endowment Total
2022 Funds Funds Funds 2022
£ £ £ £
Bank Interest 935 272 - 1,207
6 Government grants
Unrestricted Restricted Endowment Total
2023 Funds Funds Funds 2023
£ £ £ £
Coronavirus Job Retention Scheme - - - -
Unrestricted Restricted Endowment Total
2022 Funds Funds Funds 2022
£ £ £ £
CoronavirusJobRetentionScheme - - - -

Page: 18

Newbold College

Notes to the Financial Statements For the year ended 31 December 2023

7 Expenditure on raising funds Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
Funds Funds Funds 2023 Funds Funds Funds 2022
£ £ £ £ £ £ £ £
Advertising
Recruitment		 28,332
-		 250
-		 -
-		 28,582
-		 9,926
1,310		 -
-		 -
-		 9,926
1,310
28,332 250 - 28,582 11,236 - - 11,236
8 Expenditure on charitable activities
Academic
Services
£		 Property
Maintenance
£		 Support
Cost
£		 Total
2023
£		 Academic
Services
£		 Property
Maintenance
£		 Support
Cost
£		 Total
2022
£
Salaries
Social Security		 1,505,122
150,866		 -
-		 -
-		 4,505,122
150,866		 1,312,706
145,828		 -
-		 -
-		 1,312,706
145,628
Retirement cost
Otherpersonelexpense		 180,476
46,995		 -
-		 -
-		 180,476
46,995		 164,096
64,453		 -
-		 -
-		 164,096
64,453
Direct costs 79,186 - - 79,186 (37,664) - - (37,664)
Administration
Exchange loss		 -
-		 -
-		 139,779
-		 139,779
-		 -
-		 -
-		 168,436
139		 168,436
139
Buildings
Office
Departmental
Schorlashipexpenses
Depreciation		 -
-
33,150
-
-		 582,174
-
-
-
315,064		 -
300,881
-
21,973
-		 582,174
300,881
33,150
21,973
315,064		 -
-
39,554
-
-		 1,447,593
-
-
-
320,013		 -
273,276
-
45,518
-		 1,447,593
273,276
39,554
45,518
320,013
1,995,795 897,238 462,633 3,355,666 1,688,973 1,767,606 487,369 3,943,948
Analysis byfund: Total
2023		 Total
2022
£ £
Unrestricted funds 3,184,332 3,025,283
Restricted funds 92,194 820,200
Endowmentfunds 79,139 98,465
3,355,666 3,943,948
9 Other expenditure
Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
Funds Funds Funds 2023 Funds Funds Funds 2022
£ £ £ £ £ £ £ £
Governance costs (see note 10) 39,557 - - 39,557 34,782 - - 34,782
ee,

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Newbold College Notes to the Financial Statements For the year ended 31 December 2023

10 Analysis of governance and support costs

General Governance Total Total
Support 2023 2022
£ £ £ £
Board Expenditure . 9,557 9,557 4,782
Audit - 30,000 30,000 30,000
Exchange loss - . - 139
Bad debts Expenses (2,712) - (2,712) 8,879
Professional fees 121,715 - 121,715 131,328
Interest Expense 6,469 - 6,469 4,897
OtherAdministrative Expenses 14,306 - 14,306 20,737
Office Supplies & IT expense 16,960 - 16,960 25,223
Telephone and Postage 7,867 - 7,867 12,028
Equipment Maintenance 276,054 - 276,054 236,025
Scholarship Expenses 21,973 - 21,973 45,518
462,632 39,557 502,189 519,556
11 Total Resources Expended
Summary byexpenditure type Staff Other Total Total
Costs Costs Depreciation 2023 2022
£ £ £ £ £
Charitable activities 1,836,464 1,204,138 315,064 3,355,666 3,943,948
Costs of generating voluntary
income - 28,582 - 28,582 11,236
Governance costs . 39,557 . 39,557 34,782
1,836,464 1,272,277 315,064 3,423,805 3,989,966
Summary byfund type Unrestricted Restricted Endowment Total
Funds Funds Funds 2023
2023 £ £ £ £
Charitable activities 3,184,332 92,194 79,139 3,355,666
Costs ofgenerating voluntary
income 28,582 . - 28,582
Governance costs 39,557 - - 39,557
3,252,472 92,194 79,139 3,423,805

Support costs have been allocated on the basis of staff timings incurred.

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Newbold College Notes to the Financial Statements For the year ended 31 December 2023

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |11|Total|Resources|Expended|(continued)| |Included|within|total|expenditure:| |2023|2022| |£|£| |Auditors’|remuneration|30,000|30,000| |Depreciation|of tangible|fixed|assets|315,064|318,393|

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12 Analysis of costs

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||||||||||| |---|---|---|---|---|---|---|---|---|---| |Staff costs|consist|of:|2023|2022| |£|£| |Salaries|1,505,122|1,312,706| |Social|security|costs|150,866|145|828| |Pension|costs|180,476|164,096| |1,836,464|1,622,630| |Head|of|Provider|01|2023|2022| |Head|of|provider|(Apr|-|Dec|2022)|current| |Remuneration|57,017|40,730| |Pension|10,232|9,808| |Other|1,944|1,517| |69,193|52,055| |Head|of|Provider|2| |Head|of|provider|(Jan|-|May|2022)| |Remuneration|-|27,366| |Retirement Allowance|.|12,613| |Pension|-|2,565| |-|42,544| |Head|of|Provider|salary|divided|by|median|Salary|1.97|2.4| |Head|of|provider|total|remuneration| |divided|median|remuneration|2.38|2.4|

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The average number of employees during the year was 43 (2022 - 38).

Employee trustees received emoluments during the year amounting to £67,249 (2022 - £93,082) The number of employees whose emoluments exceeded £60,000 was 2 (2022 - 1) The number of senior staff receiving a salary over £100,000 or above was nil (2022 - nil)

During the year expenses relating to attendance at trustee meetings was paid to 2 trustees and amounted to £499 (2022 - £2,053)

13 Short-term investments:

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |2023|2022| |£|£| |Market|value|as|at|1|January|244,216|243,945| |Interest|re-invested|2,041|271| |Market value|at|31|December|246,257|244,216| |Investments|consist|of the|following:|£|£| |Bank|term|deposits|in|excess|of three|months|246,257|244,216|

----- End of picture text -----

Page: 21

Newbold College Notes to the Financial Statements For the year ended 31 December 2023

14 Tangible Fixed Assets

Functional Other
Land and Land and Fixtures and
Buildings Buildings Equipment Total
£ £ £ £
Cost
At 31 December 2022 4,494,186 2,672,943 2,430,696 9,597,825
Additions 11,588 - 262,422 274,010
At 31 December 2023 4,505,774 2,672,943 2,693,118 9,871,835
Depreciation
At 31 December 2022 1,942,169 875,748 1,191,954 4,009,871
Charge forthe period 79,139 89,913 146,013 315,065
At 31 December 2023 2,021,308 965,661 1,337,967 4,324,936
Net Book Value
At 31 December2023 2,484,466 1,707,282 1,355,151 5,546,899
At31December2022 2,552,017 1,797,195 1,238,742 5,587,954

Land and Buildings

Carrying Value

Newbold College carries the value of the land and buildings in these accounts in accordance with their classification of the property,

Functional Properties - Land and Buildings held for the primary purpose of the charity, the Newbold College Campus, Lecture halls, Library, Administrative Buildings and Student Halls of Residence, are considered to be effectively endowed assets (see Basis of Title, below), and are shown at cost less attributable depreciation. Other Properties - Land and Buildings not held for the primary purpose of the charity but held by the charity for its own general purposes (and not for their investment potential), comprising mainly tenanted domestic dwellings. These properties were valued by Pennicott, Chartered Surveyors, in February 25, 2013 at market value as defined by the International Valuations Standards council (IVSC) and adopted by the Royal Institution of Chartered Surveyors (RICS) in RICS Valuation - Professional Standards (Red Book, 8th Edition dated March 2012). This value was adopted at 01 January 2015 as the historical cost, in accordance with FRS 102 as modified by the Charities SORP.

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Newbold College Notes to the Financial Statements For the year ended 31 December 2023

14 Tangible Fixed Assets (Continued)

Basis of Title

Legal title to the land and buildings shown in the accounts is held by charities with compatible objectives, World-Wide Advent Missions Ltd (registered Charity Number 210955) and Seventh-day Adventist Association Ltd (registered Charity Number 209780). Title is held in accordance with memoranda of understanding (agreement) dated 7th March 2007 between Newbold College Ltd, and the parent bodies of the title holders, the Trans-European Division of Seventh-Day Adventists, and the British Union Conference of Seventh-Day Adventists, respectively.

The agreement provides that the land and buildings would be for the use of Newbold College as long as it exists and remains situated in the UK. Newbold College does not have the power to encumber, lease, or sell land and buildings, without the consent of the title holders, and their parent bodies. These bodies have from time to time granted consent to the College to lease or sell land and property when it is considered in the best interest of the College's operations. If the operation of the College is terminated the title holders and their parent bodies will determine the use of the sale of the land and properties and the distribution of any sale proceeds.

The agreement affirms the shared purpose of providing Christian education in general and the training of ministerial personnel in particular and recognises the mutual benefits of the parties working together. The Charities holding legal title do not carry the Land and Buildings at any value in their accounts, and the College is responsible for insurance, repair and maintenance of the land and buildings.

Legal Charge

By a charge dated 13th March 2009, some of the Functional Properties are held by the Seventh-day Adventist Retirement Plan as security for all present and future obligations and liabilities of Newbold College and others to make payments to the scheme. The participation of Newbold College in respect of the scheme is disclosed in note 15. The property in question has not been re-valued in these accounts but is carried in accordance with the companies accounting policies at £2,484,466 representing cost less attributable depreciation. The property was professionally valued by Chartered Surveyors Gerald Eve LLP on 2nd March 2017 at £11,060,000. As referred to in note 15, some of the larger institutional members of the scheme have agreed to make extra contributions which in the opinion of the pension scheme trustees will gradually reduce and eventually eliminate the deficit.

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Newbold College Notes to the Financial Statements For the year ended 31 December 2023

15 Debtors

Debtors
2023 2022
£ £
Amounts due within one year:
Trade debtors 43,473 64,868
Amounts due from parent charity 6,368,463 6,123,684
Amounts due from other related charities 108,009 65,813
Amounts due from employees 803 2,120
Prepaid expenses 95,463 116,262
Other debtors 167,492 35,443
6,783,703 6,408,190
16 Creditors
2023 2022
£ £
Amounts falling due within one year:
Trade creditors 51,201 48,649
Payments in advance by students 101,102 178,820
Amounts due to parent charity 74,247 87,994
Amounts due to other related entities 7,384 7,755
Amounts due to employees 4,447 -
Othertaxes and social security costs 55,360 44,214
Accrued expenses and deferred income 87,331 73,839
Other amounts payable 98,748 132,766
Agency and trust funds 52,326 63,081
532,146 637,118
17 Provisions for Liabilities 2023 2022
£ £
More Close Section 106 agreement 695,500 700,000
Rates 172,500 172,500
868,000 872,500

Moore Close Section 106

A Section 106 agreement dated 14th August 2001 between Seventh-day Adventist Association Ltd and Bracknell Forest Borough Council created a potential liability relating to the restoration and management of the Moore Close Grade II listed gardens. During the prior year discussions were held with the Council and an agreement which caps the cost to the College at £700,000 has been agreed in principle and is awaiting signature by all parties. The Trustees believe that it is probable that this amount will be needed to pay for the restoration works, as the best estimate based on advice sought is that the costs will equal the proposed cost cap. Some costs relating to the work were incurred during the year and have been deducted from the provision.

Rates

In 2022 it was established that no business rates were being paid on part of a building campus which is let on a commercial basis. The lease does not require the tenant to pay these costs therefore the liability potentially sits with the College. This has been estimated at £172,500 based on the rateable value and length of time the tenant has been in place, however, no final figure has been agreed at this stage.

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Newbold College Notes to the Financial Statements For the year ended 31 December 2023

18 Funds analysis Balance at Balance at
1 January Movement in Resources 31 December
2023 Incoming Outgoing Transfers 2023
£ £ £ £ £
Endowment funds
Scholarship endowment funds 129,674 - - . 129,674
Property endowment funds 2,552,017 - (79,139) 11,588 2,484,466
Total endowment funds 2,681,691 - (79,139) 11,588 2,614,140
Restricted funds
Scholarship
Facilities		 972,343
407,696		 4,536
-		 (24,293)
(42,419)		 916
-		 953,503
365,277
Health programmes - - -
Other Restricted Funds 1,436,775 163 (25,482) 259 1,411,715
Total restricted funds 2,816,814 4,699 (92,194) 1,175 2,730,494
Unrestricted funds
Designated funds
Propertyfunds:
Land & buildings 1,797,195 - (89,913) . 1,707,282
Plant & Equipment 1,238,742 - (146,013) 262,422 1,355,151
Other designated funds 124,883 7,663 (759) 151,361 283,148
3,160,820 7,663 (236,685) 413,783 3,345,581
General funds
General funds 2,685,582 3,775,304 (3,015,787) (426,546) 3,018,553
2,685,582 3,775,304 (3,015,787) (426,546) 3,018,553
Total unrestricted funds 5,846,402 3,782,967 (3,252,472) (12,763) 6,364,134
Totalfunds 11,344,907 3,787,666 (3,423,805) . 11,708,768

Property endowment funds represent the functional properties of the charity, funded by sponsoring organisations (see note 14)

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Newbold College Notes to the Financial Statements For the year ended 31 December 2023

19 Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted Restricted Endowment Total
funds funds funds funds
2023 2023 2023 2023
£ £ £ £
Tangible fixed assets 3,062,433 - 2,484,466 5,546,899
Current assets 4,701,847 2,730,494 129,674 7,562,015
Creditors due within one year (532,146) - - (532,146)
Provision for liabilities (868,000) - - (868,000)
6,364,135 2,730,494 2,614,140 11,708, 768
Unrestricted Restricted Endowment Total
funds funds funds funds
2022 2022 2022 2022
£ £ £ £
Tangible fixed assets 3,035,937 - 2,552,017 5,587,954
Current assets 4,320,083 2,816,814 129,674 7,266,571
Creditors due within one year (637,118) - - (637,118)
Provision for liabilities (872,500) - - (872,500)
5,846,402 2,816,814 2,681,691 11,344,907

20 Pension Commitments

From 1st January 2014, contributions have been made under the Auto-Enrolment compliance legislation by the employer to a Defined Contribution plan invested with the Legal and General insurance company . The Charity contribution is restricted to the contributions disclosed in note 8. There were no outstanding contributions at the year end. The costs of the defined contribution scheme are included within charitable activities fundraising costs and charged to the unrestricted funds of the Charity on the basis of the employees employed under each of those activities.

Newbold College also participates in a group defined contribution pension scheme and in several foreign pension schemes in respect of its foreign domiciled employees. The company's liability in respect of the foreign pension schemes is limited to the contributions assessed by these pension schemes. They are therefore accounted for as defined contribution schemes in these accounts. Contributions payable during the year amounted to £23,071 (2022: £31,855).

The Charity previously participated in a defined benefit pension scheme of the British Union Conference of Seventh Day Adventists. This scheme closed to service after 31 December 2013. Newbold College does not contribute to the recovery of the deficit for the plan but some of its functional properties are held against it as disclosed in note 14.

21 Related Party Transactions

Transactions with Governors are disclosed in Note 12. The following are transactions with the connected entities as describe in Notes 22 and 23.

General British Union Total Total
Conference Conference 2023 2022
£ £ £ £
Operating grants received 750,000 - 750,000 750,000
Special grants received 812,068 - 812,068 828,741
Amounts due by charity < 1 year - - ~
Amountsduetocharity<1year 6,368,463 66,794 6,435,257 6,123,684

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Newbold College Notes to the Financial Statements For the year ended 31 December 2023

22 Controlling Party

The charity is controlled by the General Conference of Seventh-day Adventists, the Trans-European Division, 119 St Peter's Street, St Albans, Herts, AL1 3EY (Secretary: Robert Csizmadia), by virtue of its executive committee forming the majority of the company's membership. The General Conference of Seventh-day Adventists is a non-profit making organisation registered in the USA.

23 Other Connected Entities

World-Wide Advent Missions Ltd (a registered charitable company), 119 St Peter's Street, St Albans, Herts, AL1 3EY, is the trustee corporation of the Trans-European Division, and holds title to part of the land and buildings occupied by the change.

British Union Conference of Seventh-day Adventists (a registered charity), Stanborough Park, Garston Watford, herts, WD25 9JZ, appoints the majority of the trustees of the group pension scheme.

Seventh-day Adventist Association Ltd (a registered charity), Stanborough Park, Garston Watford, herts, WD25 9JZ,is the trustee corporation of the British Union Conference, and holds title to part of the land and buildings occupied by the change.

South England Conference of Seventh-day Adventists (a registered charity), 25 St John's Road, Watford, Herts, WD17 1PZ, is the local conference of the Seventh-day Adventist churches in whose geographical area the is situated.

Page: 27