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2021-08-31-accounts

DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

REGISTERED NUMBER - 04258802

EASTERN REGION MINISTRY COURSE (a company limited by guarantee)

ACCOUNTS

For the year ended 31 August 2021

DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE (a company limited by guarantee)

Contents Pages
Company Information 1
Trustees' report 2 - 5
Report of the Independent Auditors 6 - 8
Statement of financial activities 9
Statement of financial position 10
Cash flow statement 11
Notes to the financial statements 12 - 21

DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE

TRUSTEES AND DIRECTORS

Rt. Revd Richard William Bryant Atkinson OBE (Chair) Revd William Douglas Fitzgerald Gulliford Ms Susan Elizabeth Pope Revd Stephen Michael Benoy Revd David Brereton Foster (resigned 18 August 2021) Revd Nicholas Ian Moir Revd Dr Alexander Soenderup Jensen Professor Joyce Margaret Hill Revd Timothy Llewellyn Jones (resigned 18 August 2021) The Venerable Alexander James Hughes The Venerable Karen Elizabeth Hutchinson The Reverend Jane Hilary Le Sève (resigned 18 August 2021)

COMPANY SECRETARY

Revd Dr Alexander Soenderup Jensen

PRINCIPAL OFFICE

1a the Bounds Westminster College Lady Margaret Road Cambridge CB3 0BJ

BANKERS

Barclays Bank PLC 28 Chesterton Road Cambridge CB4 3AZ

AUDITORS

Chater Allan LLP Beech House 4a Newmarket Road Cambridge CB5 8DT

REGISTERED NUMBER

04258802

CHARITY NUMBER

1090989

1

DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Trustees and Directors Report

The Trustees and Directors of the Council are pleased to present their annual report for the year ended 31st August 2021 under the Charities Act 2011, together with the audited accounts for the year and confirm that the latter comply with the requirements of the Act, the memorandum and articles of association and the Charities SORP 2019.

Reference and Administrative Information

The charity is registered with the Charity Commission under charity number 1090989 and is a company limited by guarantee, number 04258802. The registered office is 1a The Bounds, Westminster College, Lady Margaret Road, Cambridge, CB3 0BJ. Particulars of the Charity’s Trustees, Council members and professional advisers are listed on Page 1.

Structure, Governance and Management

The Charity is a Limited Company and its Directors are members of the Governing Council.

Members of the Board are appointed according to the Articles of Association and must not exceed twenty or reduce to less than two. The Governing Council, which meets termly, receives reports on the progress of the Course from the Principal, Senior Students and on financial matters from the Finance and General Purposes Committee.

The Finance and General Purposes Committee acts as a general purposes and executive committee with the power to act on all day-to-day matters with particular responsibility for the oversight of the ERMC’s financial affairs in accordance with legislative requirements, regulations and guidelines.

The Governing Council is responsible for the submission of the annual financial statements and ensuring the Course maintains proper accounting records. The Finance and General Purposes Committee oversees these on a regular basis and reports to the Council. The Council is also responsible for safeguarding the assets of the Course and thereby taking reasonable steps to ensure the prevention and detection of fraud and irregularities.

The Council holds an annual away day, at which it reviews and develops strategy and priorities for the following year.

Most Council Members are nominated by stakeholders in accordance with the Articles of Association; these are then elected by the Council. The Council has reviewed the categories of membership and adapted them to reflect ERMC’s current needs. The Council also has co-opted members, who bring expertise needed to the Council. These are identified and approached by the Chair and Principal, and then, after consultation and scrutiny proposed to the Council and elected.

We provide an induction pack and, if required, an induction session for new trustees.

The Chair of the Council has announced that he is going to retire at the next AGM. The Bishop of Huntingdon, the Right Rev’d Dr Dagmar Winter has been proposed is his successor and she is expected to be elected at the same AGM.

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DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Risk Management

The Governing Council is responsible for the management of the risks faced by the Course. Risks are identified, assessed and controls established throughout the year.

A formal review of the charity’s risk management processes is undertaken on an annual basis.

The Council is satisfied that the major risks identified have been adequately managed where necessary. It is recognised that control systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Objectives and Activities

The Charity’s Objectives are to advance the Christian religion through the provision of theological education and ministerial training to recognised candidates for ordained ministry in the Church of England, the Methodist Church, the United Reformed Church and in other mainstream Christian Churches and, where appropriate, for the preparation of suitable candidates for lay ministry.

The Course trains men and women for the ministry of the Churches of a region which includes the Anglican Dioceses of Ely, St Edmundsbury and Ipswich, Norwich, Peterborough, St Albans and Chelmsford. The Course also serves the Anglican Diocese in Europe.

Achievements and Performance

This was the second year in which we had to operate under the shadow of Covid. We had a good intake of students, with 24 new ordinands and 17 new LLMs in training. The summer school had to be held online, which made forming the community challenging this year. Five of our six residential weekends had to be held online, too. This meant that for ordinands and those LLMs in training who attend residentials an important aspect of their education was missing. Staff tried to mitigate this as much as they could by offering online chapel and online social events, but that was no substitute for meeting face-to-face. Online teaching continued to work very well.

We were able to hold the June weekend in hybrid mode, with those who could attend meeting face-to-face at a conference centre and the rest attending online. The opportunity to meet again in person was greatly appreciated by those attending. Because of the ongoing Covid situation it looks as if we may have to continue to offer our residential programme in hybrid mode.

Foundations for Ministry course, which we developed in collaboration with St Albans and Ely dioceses, ran for its first year. This is a non-accredited level 3 course for lay education, which St Albans and Ely use as part of their lay education and discernment programmes. Enrolment was much higher than expected. We provide online content, including discussion forums and a dedicated online tutor. The dioceses provide face-to-face opportunities for reflection and support. We received very encouraging student feedback and expect to run the course again.

During the year the Diocese in Europe agreed a new partnership for Reader training with us. From 2021/22 Readers in training from this diocese will study for the Certificate in Theology, Ministry and Mission using our online classes. This builds on the strong relationship built as a result of ERMC providing the non-residential ordination training for the Diocese in Europe.

The new Tutor in Mission and Evangelism started January 2021. We appointed Mr John Wigfield, who has held a similar position at another TEI and brings with him a wealth of experience as a theological educator and missionary.

3

DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Financial Review

The Course continues to be funded by fees received from the Church of England. In the 2020/21 financial year we received the full fees for our students but had significantly reduced costs as a result of the cancellation of five residential weekends and the summer school. As a result, the Council reports a surplus of £106,712 after the actuarial gain of £8,000 on the defined benefit schemes. We were pleased that student numbers have remained stable at the higher level. For the following year student numbers are significantly higher. The Finance and General Purposes Committee continues to review expenditure so the ERMC will be sustainable in the long term.

Reserves Policy

The Council operates a reserves policy which states that the Trustees are satisfied that ERMC can operate with the equivalent of two months’ worth of expenditure as a reserve. However, over the longer term, it is desirable to hold three months, provided that there is no detrimental effect on the running of the course.

At the year end, the level of reserves was equivalent to circa. 10 months expenditure. Whilst the Trustees will apply some of the reserves to enhance existing work, because of the uncertainties resulting from the Covid 19 pandemic and the economic consequences, the Trustees intend to keep a higher level of reserves until there is greater certainty again.

The Trustees note that the total unrestricted free reserves at the year-end were £336,755. Total reserves at 31st August 2021 are £339,942.

Public benefit

The Trustees have reviewed the activities of the past year in line with Charity Commission guidelines on public interest benefit. The aims and objectives of ERMC are within those guidelines interpreted by ERMC as providing specific benefit to those being trained for authorised church ministry and through them to the Anglican parishes and Methodist Circuits and wider communities in the region which we serve.

Plans for the future

The Church of England has embarked on a comprehensive review of the structures and financing of ministerial formation. The working group of which the Principal was a member has been disbanded and changes to the funding system will be introduced to General Synod. It is expected that these changes will provide more stable and predictable funding in the form of block grants from central funds. We will continue to engage with the process.

The Council has agreed the creation of a new position in practical theology. We were expecting to appoint the new tutor in January 2022, but this has now been delayed until the start of the following academic year.

Given their growing number we are planning to set up a mentoring system for independent students. This will, we expect, improve the student experience significantly.

ERMC is engaging with the 'From Lament to Action' report and its recommendations via a working group, which was formed in July 2021 and has produced an action plan for the next two years.

With the appointment of the new Chair of Council we will need to embark on a strategic planning process. We have come to the end of our three-year strategic plan and are now in a position to develop a longer-term strategic plan.

4

DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Responsibilities of the Board of Trustees

Under company law, the directors are required to prepare financial statements for each financial year which give a true and fair view of the state of the Company and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing these financial statements the Board is responsible for

So far as the trustees are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the charity's auditors are unaware, and each trustee has taken steps that he or she ought to have taken as trustee in order to make himself or herself aware of any relevant audit information and to establish that the charity's auditors are aware of that information.

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to the small companies.

Rt. Revd Richard William Bryant Atkinson OBE (Chair)

Signed on behalf of the Council Date: 18th March 2022

5

DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE REPORT OF THE INDEPENDENT AUDITORS TO THE COUNCIL OF MEMBERS

We have audited the financial statements of Eastern Region Ministry Course (the charitable company) for the year ended 31 August 2021 which comprise Statement of Financial Activities, Balance Sheet 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, United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), and the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

In our opinion the financial statements:

• give a true and fair view of the state of the charitable company's affairs as at 31 August 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

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 the 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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the trustees' annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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.

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.

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DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE REPORT OF THE INDEPENDENT AUDITORS TO THE COUNCIL OF MEMBERS

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

Matters on which we are to required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement, the trustees 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 statements

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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE REPORT OF THE INDEPENDENT AUDITORS TO THE COUNCIL OF MEMBERS

Auditor's responsibilities for the audit of the financial statements (continued)

The potential effect of these laws and regulations on the annual financial statements varies considerably. Firstly, the charitable company is subject to laws and regulations that directly affect the annual financial statements including financial reporting legislation and taxation legislation, and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related annual account items. Secondly, the charitable company is subject to other laws and regulations where the consequences of noncompliance could have a material effect on the amounts or disclosures in the financial statements, for instance non-compliance with industry regulations. We assessed the risk of fraud in the financial statements through discussion with management and from our experience of the charitable company. We communicated identified fraud risk areas throughout our team and remained alert to any indication of fraud throughout the audit. In particular, we assessed the potential impact of the global pandemic known as Covid-19 on the risk of fraud.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the annual financial statements from our general commercial and charitable company specific experience, through discussion with the directors (as required by auditing standards), and from inspection of the charitable company's regulatory correspondence, and we discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indication to non-compliance throughout the audit; the audit team are deemed both competent and capable of identifying non-compliance with rules and regulations.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures, we did not become aware of any actual or suspected non-compliance with laws and regulations. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditorsresponsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of report

This report is made solely to the trustees, 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 charitable company’s trustees 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 anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stuart Graham Berriman (Senior Statutory Auditor) for and on behalf of Chater Allan LLP, Chartered Accountants & Statutory Auditor, Beech House 4a Newmarket Road Cambridge

25 March 2022 Date:

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DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE STATEMENT OF FINANCIAL ACTIVITIES (Incorporating the income and expenditure account) FOR THE YEAR ENDED 31 AUGUST 2021

Note Unrestricted
Funds
£
Income from:
Donations
2,555
Charitable activities:
499,527
- Other
-
Investments
41
Total
502,123
Expenditure
Charitable activities
2
403,411
Total
403,411
Net income/(expenditure)
98,712
Transfer between funds
-
Other recognised gains/(losses)
12
8,000
Net movement in funds
106,712
Reconciliation of funds:
Total funds brought forward
232,900
Total funds carried forward
11
339,612
- Theological education and ministerial
training
Acturial gains/(losses) on defined benefit
pension schemes		 Restricted
Funds
£
-
-
-
-
-
-
-
-
-
-
-
330
330		 Total Funds
2021
£
2,555
499,527
-
41
502,123
403,411
403,411
98,712
-
8,000
106,712
233,230
339,942		 Total Funds
2020
£
2,430
451,342
2,108
395
456,275
360,008
360,008
96,267
-
27,000
123,267
109,963
233,230

None of the Course's activities were acquired or discontinued during the above two financial years.

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DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

REGISTERED NUMBER - 04258802

EASTERN REGION MINISTRY COURSE STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2021

Note 2021 2020
FIXED ASSETS £ £ £ £
Tangible Assets 5 2,857 3,892
CURRENT ASSETS
Debtors 6 33,182 46,987
CBF Deposit Account 100,162 162
Cash at Bank 278,397 243,163
Petty Cash - -
TOTAL CURRENT ASSETS 411,742 290,312
CURRENT LIABILITIES
Creditors 7 73,657 48,974
73,657 48,974
NET CURRENT ASSETS 338,085 241,338
TOTAL ASSETS LESS CURRENT LIABILITIES 340,942 245,230
DEFINED BENEFIT PENSION 8 (1,000) (12,000)
SCHEME LIABILITY
NET ASSETS 339,942 233,230
THE FUNDS OF THE CHARITY:
Unrestricted Fund:
General Fund 339,612 232,900
Restricted Fund 10 330 330
TOTAL CHARITY FUNDS 339,942 233,230

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to the small companies.

Approved by the Council on 18th March 2022 and signed by:

……………………………….

Rt. Revd Richard William Bryant Atkinson OBE (Chair)

………………………………

Revd Dr Alexander Soenderup Jensen

10

DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021

Total Total
2021 2020
£ £
Cash flows from operating activities:
Net cash provided by operating activities 135,899 61,093
Cash flows from investing activities:
Interest from investments 41 395
Purchase of property, plant and equipment (397) (620)
Net cash provided by investing activities (356) (225)
Cash flows from financing activities
Interest paid (309) (332)
Change in cash and cash equivalents in the reporting
period 135,234 60,537
Cash and cash equivalents at the beginning of the
reporting period 243,325 182,788
Cash and cash equivalents at the end of the reporting
period 378,559 243,325
Summary of the cash and cash equivalents at the end
of the reporting period
Cash at bank and in hand 378,559 243,325
378,559 243,325
Reconciliation of net income/(expenditure) to net cash flow from operating activities
Net income/(expenditure) for the reporting period 98,712 96,267
Adjustments for:
Depreciation charges 1,432 1,899
Gains/(losses)losses on defined benefit pension scheme 8,000 27,000
Interest from investments (41) (395)
Interest paid shown in financing activities 309 332
Decrease/(increase) in debtors 13,804 (18,402)
Incease/(decrease) in creditors 13,683 (45,607)
Net cash provided by operating activities 135,899 61,093

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DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

1) GENERAL INFORMATION

The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 1a The Bounds, Westminster College, Lady Margaret Road, Cambridge, CB3 0BJ.

A separate income and expenditure summary has not been produced as it is not considered necessary to do so.

ERMC meets the definition of a public benefit entity under FRS 102.

The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited to a maximun of £10 per member of the company.

STATEMENT OF COMPLIANCE

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', 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 (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.

ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities measured at fair value through income or expenditure.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably. Interest is fully accrued at the balance sheet date.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Grants and donations payable are accounted for when a legal or constructive obligation arises. A constructive obligation arises where the other party has a reasonable expectation of receipt.

Depreciation of Fixed Assets

Depreciation is provided at the following annual rates in order to write off each asset over its useful economic life:

Furniture 10 years on cost Equipment 5 years on cost Computers and computer equipment 3 years on cost Library 15 years on cost

Pension Costs

The company operates two defined benefits pension schemes. Contributions payable to these schemes are charged to the Income and Expenditure account so as to spread the cost of the pension over the employees' expected working life. The pension charge is calculated on the basis of actuarial advice. These contributions are invested separately from the course's assets. Under Section 28 of FRS 102 provision is made for agreed deficit recovery payments.

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DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

1) ACCOUNTING POLICIES (continued)

Going Concern

The Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The Trustees have considered the potential impact on the charitable company of the current global pandemic known as COVID-19. In the opinion of the Trustees there will be no material adverse effect on the charitable company's ability to continue. The Trustees believe the charitable company is well placed to manage its business risks successfully despite the current uncertain economic outlook. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.� �

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Financial instruments:

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

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DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

2)
CHARITABLE ACTIVITY EXPENDITURE
Theological education and ministerial training
Direct costs:
Tutorial staff
Staff travel, training and book allowances
Tutors' fees and expenses
Centre teacher expenses
Other academic costs
Tutorial support staff
Recruitment & meals costs
Insurance
Other direct premises costs
Residential weekends and summer school
Staff housing costs
Depreciation charge
Bad debts
Support costs:
Service charges
Printing, stationery and photocopying
Postage and telephone
Branding and web design
IT costs
Gas & Electricity
Governance- Audit fees
Council expenses
Professional fees
Other support costs
Total costs		 2021
2020
£
£
197,423
135,386
6,172
8,464
7,984
25,185
705
9,963
25,421
24,169
59,714
60,986
485
1,501
1,679
1,488
17,733
17,844
46,579
37,065
13,211
12,995
1,432
1,899
-
30
378,537
336,974
2,996
2,533
4,033
4,678
594
315
986
887
1,400
228
933
478
4,200
2,323
-
105
8,416
9,273
1,317
2,216
24,874
23,034
403,411
360,008

3) ANALYSIS OF STAFF COSTS AND REMUNERATION TO KEY PERSONNEL

Wages and salaries
Social security costs
Pension costs
Staff book allowances
The average number of persons employed by the Course during the year was: -
Academic staff
Tutorial support staff		 2021
£
190,328
13,919
30,685
1,865		 2020
£
141,611
12,019
28,443
1,301
236,798 183,374
2021
5
11		 2020
4
2
16 6

There were no employees paid in excess of £60,000 in the year. £nil was paid to trustees for council expenses. During the year one trustee Revd Dr Jensen received £45,389 in his capacity as Principal.

Key management personnel

During the year remuneration received by key management personnel totalled £54,389.

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DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

4) NET INCOME/(EXPENDITURE)

NET INCOME/(EXPENDITURE)
2021 2020
£ £
Net income/ (expenditure) is stated after charging:
Depreciation of tangible fixed assets 1,432 1,899
Auditors' remuneration 4,200 2,323
Auditors' remuneration: (under)/over acrual in prior year (600) 760
Pension costs 30,685 28,443

5) FIXED ASSETS

Cost
At 1 September 2020
Additions
Disposals
At 31 August 2021
Depreciation
At 1 September 2020
Charge for Year
Eliminated on disposal
At 31 August 2021
Net Book Value:
At 31 August 2021
At 31 August 2020
All assets are used for charitable purposes.
6)
DEBTORS
Fees outstanding
Prepayments and accrued income
Other debtors
7)
CREDITORS
Trade creditors
Accruals and deferred income
Other creditors
Pension deficit reduction provision
8)
PENSION PROVISIONS
Balance as at 1st September
Deficit contributions (paid)/incurred
Interest cost
Remaining change to the balance sheet liability
Balance as at 31 August
Due in less than one year
Due in more than one year		 Computer
Equipment
£
7,333
-
-		 Office
Equipment
& Furniture
£
7,760
397
-		 Library
£
20,216
-
-		 Total
£
35,309
397
-
7,333 8,157 20,216 35,706
5,914
980
-		 5,287
452
-		 20,216
-
-		 31,417
1,432
-
6,894 5,739 20,216 32,850
439 2,418 - 2,857
1,419 2,473 - 3,892
2021
£
4,767
28,416
-		 2020
£
35,057
11,930
-
33,182 46,987
2021
£
35,829
21,152
5,676
11,000		 2020
£
17,411
18,538
5,025
8,000
73,657 48,974
2021
£
20,000
(8,000)
-
-		 2020
£
47,000
(8,000)
2,000
(21,000)
12,000 20,000
11,000
1,000		 8,000
12,000

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DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

8) PENSION PROVISIONS (continued)

The charity has entered into a deficit recovery plan in respect of the Church of England Funded Pension Scheme, see note 12. The pension provisions are based on the pension scheme's year end of 31 December ended in the charity's accounting year.

The charity has entered into a deficit recovery plan in respect of the Church Workers Pension Fund, see note 12. The pension provisions are based on the pension scheme's year end of 31 December ended in the charity's accounting year.

9) OPERATING LEASE COMMITMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Expiring:
In less than one year
Between one and five years
Greater than five years		 2021
2020
£
£
14,642
15,369
57,600
57,600
244,558
258,231
316,800
331,200
Office Equipment

Lease payment rentals recognised as an expense for the year amounted to £483

10) RESTRICTED FUND
Balance as at 1 September 2020
Incoming resources
Less outgoing resources
Transfer from Unrestricted Fund
Balance as at 31 August 2021		 Liturgy
Binders
Fund
£
330
-		 Total
£
330
-
330
-
-		 330
-
-
330 330

The Restricted Fund was set up in 2003 with a donation of £330 to purchase liturgy binders.

11) ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restricted Funds
Unrestricted Funds:
General Fund		 Tangible
Fixed Assets
£
-
2,857		 Net Current
Assets
£
330
337,755		 Pension
Provisions
£
-
(1,000)		 Total
£
330
339,612
2,857 338,085 (1,000) 339,942

12) PENSION SCHEMES

a) Church Workers Pension Fund

Eastern Region Ministry Course participates in the Defined Benefits Scheme section of CWPF for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Employer and the other participating employers.

CWPF has two sections:

a. a deferred annuity section known as Pension Builder Classic, and, b. a cash balance section known as Pension Builder 2014.

16

DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

12) PENSION SCHEMES (continued)

Defined Benefits Scheme

The Defined Benefits Scheme (“DBS”) section of the Church Workers Pension Fund provides benefits for lay staff based on final pensionable salaries.

For funding purposes, the DBS is divided into sub-pools in respect of each participating employer as well as a further sub-pool, known as the Life Risk Pool. The Life Risk Pool exists to share certain risks between employers, including those relating to mortality and post-retirement investment returns.

The division of the DBS into sub-pools is notional and is for the purpose of calculating ongoing contributions. They do not alter the fact that the assets of the DBS are held as a single trust fund out of which all the benefits are to be provided. From time to time, a notional premium is transferred from employers’ sub-pools to the Life Risk Pool and all pensions and death benefits are paid from the Life Risk Pool.

The scheme is a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute the scheme’s assets and liabilities to specific employers, since each employer, through the Life Risk Pool, is exposed to actuarial risks associated with the current and former employees of other entities participating in the DBS. This means that contributions are accounted for as if DBS were a defined contribution scheme. The pension costs charged to the SoFA in the year are contributions are payable towards benefits and expenses accrued in that year, 2021: £4,016 (2020: £3,656), plus the figures in relation to the DBS deficit highlighted in the table below as being recognised in the SoFA, giving a total charge of £6,016 for 2021 (2020: £5,656).

If, following an actuarial valuation of the Life Risk Pool, there is a surplus or deficit in the pool and the Actuary so recommends, further transfers may be made from the Life Risk Pool to the employers’ sub-pools, or vice versa. The amounts to be transferred (and their allocation between the sub-pools) will be settled by the Church of England Pensions Board on the advice of the Actuary.

A valuation of the DBS is carried out once every three years. The most recently finalised was carried out as at 31 December 2019. In this valuation, the Life Risk Section was shown to be in deficit by £7.7m and £7.7m was notionally transferred from the employers’ sub-pools to the Life Risk Section. This increased the Employer contributions that would otherwise have been payable. The overall deficit in DBS was £11.3m.

The next actuarial valuation is due at 31 December 2022.

Following the valuation, the Employer has entered into an agreement with the Church Workers Pension Fund to pay expenses of £1,800 per year. In addition deficit payments of £2,721 per year have been agreed for 7 years from 1 April 2021 in respect of the shortfall in the Employer sub-pool. This obligation has been recognised as a liability within the Employer's financial statements.

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out below:

2021 2020
Deficit contribution paid
Interest cost (recognised in SoFA)
Remaining change to the balance sheet liability*(recognised in SoFA)
Balance sheet liability at 31 December 2020/2019
Balance sheet liability at 1 January 2020/2019		 7,000
(2,000)
-
-		 8,000
(2,000)
-
1,000
5,000 7,000

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DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

12) PENSION SCHEMES (continued)

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions, set by reference to the duration of the deficit recovery payments:

Dec-21 Dec-20 Dec-19
Discount rate 1.50% 0.30% 1.20%

The legal structure of the scheme is such that if another employer fails, the employer could become responsible for paying a share of that employer’s pension liabilities.

Pension Builder Scheme

Both sections of the Pension Builder Scheme are classed as defined benefit schemes.

Pension Builder Classic provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors.

Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65.

There is no sub-division of assets between employers in each of the Pension Builder Scheme.

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme's assets and liabilities to specific employers and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pension costs charged to the SoFA in the year are contributions payable, 2021: £12,125 (2020: £8,225).

A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2019. The next valuation is due as at 31 December 2022.

For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 3% following improvements in the funding position over 2021. There is no requirement for deficit payments at the current time.

For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.

The legal structure of the scheme is such that if another employer fails, Eastern Region Ministry Course could become responsible for paying a share of that employer's pension liabilities.

b) Clergy Pension Fund

Eastern Region Ministry Course participates in the Church of England Funded Pensions Scheme for stipendiary

December December
2021 2020
Number of members at this Responsible Body 2 2

Each participating Responsible Body in the scheme pays contributions at a common contribution rate applied to pensionable stipends.

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DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

12) PENSION SCHEMES (continued)

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme's assets and liabilities to specific employers and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, 2021: £19,781 (2020: £19,391), plus the figures highlighted in the table below as being recognised in the SoFA, giving a total charge of £13,781 in 2021 (2020: £13,391).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at 31 December 2018. The 2018 valuation revealed a deficit of £50m, based on assets of £1,818m and a funding target of £1,868m, assessed using the following assumptions:

Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the contribution rates (as a percentage of pensionable stipends) were set out in the table below.

January 2018 January 2021
to December to December
% of pensionable stipends 2020 2022
Deficit repair contributions 11.9% 7.1%

As at 31 December 2019 and 31 December 2020 the deficit recovery contributions under the recovery plan in force were as set out in the above table.

For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme's rules.

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out below:

in the provision is set out below:
Balance sheet liability at 1 January 2020/2019
Deficit contributions paid
Interest cost (recognised in SoFA)
Remaining change to the balance sheet liability*
(recognised in SoFA)
Balance sheet liability at 31 December 2020/2019		 2021
13,000
(6,000)
-
-		 2020
39,000
(6,000)
1,000
(21,000)
7,000 13,000

* Comprises change in agreed deficit recovery plan and change in discount rate between year-ends

19

DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

12) PENSION SCHEMES (continued)

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. In general, these are set by reference to the duration of the deficit recovery payments but as at 31 December 2021, under accounting rules the payments are not discounted since the remaining recovery plan is less than 12 months. No price inflation assumption is needed since pensionable stipends for the remainder of the recovery plan are already known.

December December December December
2021 2020 2019 2018
Discount rate 0.0% 0.2% 1.1% 2.1%
Price inflation n/a 3.1% 2.8% 3.1%
Increase to total pensionable payroll -1.5% 1.6% 1.3% 1.6%

The legal structure of the scheme is such that if another Responsible Body fails, Eastern Region Ministry Course could become responsible for paying a share of that Responsible Body's pension liabilities.

The pension provisions are based on the pension scheme's year end of 31 December ended in the charity's accounting year.

The valuations for the accounting year ending 31st August are as follows:

Church Workers Pension Fund (CWPF)

2021 2020
Deficit contribution paid
Interest cost (recognised in SoFA)
Remaining change to the balance sheet liability*(recognised in SoFA)
Balance sheet liability at 31 December 2020/2019
Balance sheet liability at 1 January 2020/2019		 7,000
(2,000)
-
-		 8,000
(2,000)
-
1,000
5,000 7,000

Church of England Funded Pension Scheme (CEFPS)

2021 2020
Deficit contribution paid
Interest cost (recognised in SoFA)
Remaining change to the balance sheet liability*(recognised in SoFA)
Balance sheet liability at 31 December 2020/2019
Balance sheet liability at 1 January 2020/2019		 13,000
(6,000)
-
-		 39,000
(6,000)
1,000
(21,000)
7,000 13,000

20

DocuSign Envelope ID: F642280E-8C6D-4553-8739-B0E069C8B199

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2021

13) STATEMENT OF FINANCIAL ACTIVITIES DETAIL FOR YEAR ENDED 31st AUGUST 2020

Income from:
Donations
Charitable activities:
- Theological education and ministerial training
- Other
Investments
Total
Expenditure
Charitable activities
Total
Net (expenditure)/income
Transfer between funds
Other recognised gains/(losses
Actuarial gains/(losses) on defined benefit pension
schemes
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward as restated		 General
Fund
£
2,430
451,342
2,108
395		 Restricted
Total
Fund
2020
£
£
2,430
451,342
2,108
395
-
456,275
360,008
-
360,008
-
96,267
-
-
-
27,000
-
123,267
330
109,963
330
233,230
456,275
360,008
360,008
96,267
-
27,000
123,267
109,633
232,900

14) RELATED PARTY TRANSACTIONS

There were no related party transactions except as noted in note 3.

21