DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **REGISTERED NUMBER - 04258802** 

**EASTERN REGION MINISTRY COURSE (a company limited by guarantee)** 

## **ACCOUNTS** 

**For the year ended 31 August 2023** 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **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: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

**EASTERN REGION MINISTRY COURSE** 

## **TRUSTEES AND DIRECTORS** 

Revd Stuart William Batten 

Revd Dr Michael Frederick Fox Revd Timothy Edward Goodbody Revd William Douglas Fitzgerald Gulliford The Venerable Richard John StClair Harlow (Chair from 23/06/2023) (appointed 23/06/2023) Professor Joyce Margaret Hill The Venerable Alexander James Hughes Revd Dr Alexander Soenderup Jensen Ms Susan Elizabeth Pope Revd Nicholas Ian Moir (resigned 23/06/2023) The Revd Dr Julie Mary Norris (appointed 23/06/2023) Mr Andrew John Roberts (appointed 23/06/2023) The Revd Haydon Du Garde Spenceley (appointed 16/03/2023) Rt. Revd Dagmar Winter (Chair until 23/06/2023) (resigned 23/06/2023) 

## **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 7 Quy Court Colliers Lane Stow-cum-Quy CB25 9AU 

## **REGISTERED NUMBER** 

04258802 

## **CHARITY NUMBER** 

1090989 

1 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2023** 

## **Trustees and Directors Report** 

The Trustees and Directors of the Council are pleased to present their annual report for the year ended 31st August 2023 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 Trustees are members of the Council. Staff, student and Cambridge Theological Federation representatives are not Trustees and in attendance. The 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 an 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 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 Annual General Meeting. 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 retired at an Extraordinary General Meeting after the June Council meeting. The Archdeacon of Huntingdon and Wisbech, the Ven. Richard Harlow, was elected Chair at the same meeting. 

## **Risk Management** 

The 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. 

2 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2023** 

## **Risk Management (continued)** 

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 year the number of ordinands nationally was significantly lower than normally. This affected the intake of all Theological Education Institutions (TEIs). In response, the national Church provided extra funding to reduce the shortfall. Numbers of Reader/LLM students in our partner dioceses were lower than usual. We had an intake of 15 new ordinands, 17 new Readers/LLMs in training and 11 independent students. Our total student numbers were 52 ordinands, 36 Readers and LLMs in training and 13 independent students. Fifty-five students were enrolled in the Foundations for Ministry Course, our non-accredited level 3 lay training course, which we run in partnership with the Dioceses of Ely and St Albans. 

At the beginning of the academic year the owner of Belsey Bridge Conference Centre, the Christian Conference Trust (CCT), informed us that they were closing Belsey Bridge at the beginning of December, and that the October weekend would be our last in that venue. For some weekends CCT was able to offer us spaces at High Leigh and The Hayes, two other conference centres CCT owns, for four of the five remaining residential weekends. We had to use a commercial conference centre for the remaining weekend. For the 2023 summer school we used Ridley Hall. In the long term, we will use All Nations Christian College, Ware, for our summer schools, and High Leigh for the residential weekends. As High Leigh is significantly more expensive than Belsey Bridge, we negotiated with the national Ministry Development Team that we will only run five residential weekends per year and run a day conference in place of the sixth. 

We did not have any staff changes in 2022-23. 

## **Financial Review** 

The Course continues to be funded by fees received from the Church of England. As predicted, ordinand numbers were very low nationally. In addition, our partner dioceses had fewer Readers/LLMs in training than the year before. The new funding arrangements mitigated some of the effect of the lower ordinand numbers, but not all of it. The closure of Belsey Bridge and the need to use a commercial venue for one of the residential weekends led to extra expenditure, half of which was met by a grant from the Church of England. As a result, the Council reports a deficit of £16,736 after the actuarial gain of £15,000 on the defined benefit pension schemes. 

It became clear during the year that that ordinand numbers would be low again in 2023/24, in line with the national trend. The new funding mechanism, which the Church of England has put in place, will mitigate against this partially. The Finance and General Purposes Committee continues to review expenditure so that ERMC will be sustainable in the long term. 

3 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2023** 

## **Reserves Policy** 

The Council’s policy is to hold the equivalent of three months’ expenditure as a reserve. 

At the year end, the level of reserves was equivalent to circa.7 months expenditure. The Trustees will apply some of the reserves to enhance existing work. However, because of the uncertainty around student numbers 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 £358,288. Total reserves at 31st August 2023 are £360,424. 

## **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 in that the ERMC provides 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 implemented the new funding arrangements at the beginning of the 2022/23 academic year. However, it became soon apparent that the new mechanism was not designed to cope with a sustained drop in ordinand numbers nationwide. Therefore, a new review of the funding arrangements is underway, although as yet no details have been made public. We will engage with this process as it evolves. 

At its meeting in June 2023 Council approved the new strategic plan. This makes broadening and deepening our diocesan partnerships a priority. As part of this we have redeveloped our full-time contextual pathway and are planning to promote this in the dioceses. 

Our current curriculum has been in place for five years with some minor changes. We are therefore planning a curriculum review to ensure that our curriculum meets the needs of our partner dioceses and the wider Church. 

## **Responsibilities of the Board of Trustees** 

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. 

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The financial statements are required by law to give a true and fair view of the state of affairs of the charitable company and of the income, expenditure and financial activities of the charity for that year. In preparing these financial statements, the Trustees are required to: 

- select suitable accounting policies then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

4 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2023** 

## **Responsibilities of the Board of Trustees (continued)** 

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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. 

## **Statement as to disclosure of information to Auditors** 

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 a 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. 

This report, which has been prepared in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities and in accordance with the special provisions of Part 15 of the Companies Act 2006 applicable to small entities. 

The trustees' annual report was approved on 12th  April 2024 and signed on behalf of the board of trustees by: 

The Ven. Richard Harlow (Chair) 

5 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **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 2023 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 and United Kingdom Accounting Standard, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (Generally Accepted Accounting Practice). 

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 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **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. 

6 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **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 

• the trustees’ report has been prepared in accordance with applicable legal requirements. 

## **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: 

- adequate accounting records have not been kept, or returns adequate for audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of directors' remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit. 

- the trustees were not entitled to prepare the financial statements in accordance with the small companies' regime when not eligible and to take advantage of the small companies' exemption from the requirement to prepare a strategic report or in preparing the trustees' report. 

## **Responsibilities of the trustees** 

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for 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 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. 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: 

We identified the laws and regulations applicable to the charitable company through discussions with Directors and other management, and from our knowledge and experience of the education sector; 

7 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **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)** 

We obtained an understanding of the legal and regulatory framework applicable to the charitable company and how it is complying with that framework; 

We obtained an understanding of the charitable company's policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance; 

We assessed the susceptibility of the charitable company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 

Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and 

Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. 

To address the risk of fraud through management bias and override of controls, we; 

Tested journal entries to identify unusual transactions; 

Assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policy were indicative of potential bias; and 

Investigated the rationale behind significant or unusual transactions. 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 

Agreeing financial statement disclosures to underlying supporting documentation; 

Reviewing minutes of meetings of those charged with governance; 

Enquiring of management as to actual and potential litigation and claims. 

Through the above 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, 7 Quy Court Colliers Lane Stow-cum-Quy CB25 9AU 07 May 2024 Date: 

8 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE STATEMENT OF FINANCIAL ACTIVITIES (Incorporating the income and expenditure account) FOR THE YEAR ENDED 31 AUGUST 2023** 

|**Note Unrestricted**<br>**Funds**<br>**£**<br>**Income from:**<br>Donations<br>7,374<br>Charitable activities:<br>522,015<br>Investments<br>4,817<br>**Total**<br>534,206<br>**Expenditure**<br>Charitable activities<br>2<br>565,342<br>**Total**<br>565,342<br>**Net (expenditure)income**<br>(31,136)<br>Transfer between funds<br>-<br>**Other recognised gains/(losses)**<br>12<br>15,000<br>**Net movement in funds**<br>(16,136)<br>**Reconciliation of funds:**<br>Total funds brought forward<br>376,830<br>**Total funds carried forward**<br>11<br>360,694<br>- Theological education and ministerial<br>training<br>Acturial (losses)/gains on defined benefit<br>pension schemes|**Restricted**<br>**Funds**<br>**£**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>330<br>330|**Total Funds**<br>**2023**<br>**£**<br>7,374<br>522,015<br>4,817<br>534,206<br>565,342<br>565,342<br>(31,136)<br>-<br>15,000<br>(16,136)<br>377,160<br>361,024|**Total Funds**<br>**2022**<br>**£**<br>1,350<br>522,488<br>557|
|---|---|---|---|
||||524,395|
||||472,177|
||||472,177|
||||52,218<br>-<br>(15,000)|
||||37,218<br>339,942<br>377,160|



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

9 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

**REGISTERED NUMBER - 04258802** 

## **EASTERN REGION MINISTRY COURSE STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2023** 

||**Note**||**2023**||**2022**||
|---|---|---|---|---|---|---|
|**FIXED ASSETS**||**£**|**£**|**£**||**£**|
|Tangible Assets|5||1,806|||2,740|
|**CURRENT ASSETS**|||||||
|Debtors|6|62,717||65,865|||
|CBF Deposit Account||103,459||100,461|||
|Cash at Bank||251,499||293,345|||
|**TOTAL CURRENT ASSETS**||417,675||459,671|||
|**CURRENT LIABILITIES**|||||||
|Creditors|7|58,457||77,251|||
|||58,457||77,251|||
|**NET CURRENT ASSETS**|||359,218|||382,420|
|**TOTAL ASSETS LESS CURRENT LIABILITIES**|**TOTAL ASSETS LESS CURRENT LIABILITIES**||361,024|||385,160|
|**DEFINED BENEFIT PENSION**|8||-|||(8,000)|
|**SCHEME LIABILITY**|||||||
|**NET ASSETS**|||361,024|||377,160|
|**THE FUNDS OF THE CHARITY:**|||||||
|Unrestricted Fund:|||||||
|General Fund|||360,694|||376,830|
|Restricted Fund|10||330|||330|
|**TOTAL CHARITY FUNDS**|||361,024|||377,160|



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 12th April 2024 and signed by: 

………………………………. 

The Ven. Richard Harlow (Chair) 

……………………………… 

Revd Dr Alexander Soenderup Jensen 

10 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2023** 

||**Total**|**Total**|
|---|---|---|
||**2023**|**2022**|
||**£**|**£**|
|**Cash flows from operating activities:**|||
|Net cash (used in)/provided by operating activities|(43,225)|15,896|
|**Cash flows from investing activities:**|||
|Interest from investments|4,817|557|
|Purchase of property, plant and equipment|-|(840)|
|Net cash provided by investing activities|4,817|(283)|
|**Cash flows from financing activities**|||
|Interest paid|(440)|(364)|
|**Change in cash and cash equivalents in the reporting**|||
|**period**|(38,848)|15,249|
|Cash and cash equivalents at the beginning of the|||
|reporting period|393,806|378,557|
|**Cash and cash equivalents at the end of the reporting**|||
|**period**|354,958|393,806|
|**Summary of the cash and cash equivalents at the end**|||
|**of the reporting period**|||
|Cash at bank and in hand|354,958|393,806|
||354,958|393,806|
|**Reconciliation of net (expenditure)/income to net cash flow**|**from operating activities**||
|Net (expenditure)/income for the reporting period|(31,136)|52,218|
|Adjustments for:|||
|Depreciation charges|934|957|
|Gains/(losses)losses on defined benefit pension scheme|15,000|(15,000)|
|Interest from investments|(4,817)|(557)|
|Interest paid shown in financing activities|440|364|
|Decrease/(increase) in debtors|3,148|(32,681)|
|Decrease/(increase) in creditors|(26,794)|10,595|
|Net cash (used in)/provided by operating activities|(43,225)|15,896|



11 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023** 

## **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. 

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 maximum 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. 

## **Companies Act 2006** 

These financial statements have been prepared in accordance with the Companies Act 2006 with amendments to enhance the "True and Fair" view. The inclusion of an Income and Expenditure account is not deemed necessary as the information is disclosed in the Statement of Financial Activities. 

12 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023** 

## **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 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. 

13 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023** 

|**2)**<br>**CHARITABLE ACTIVITY EXPENDITURE**<br>**Theological education and ministerial training**<br>**Direct costs:**<br>Tutorial staff<br>Staff travel, training and book allowances<br>Tutors' fees and expenses<br>Centre teacher expenses<br>Other academic costs<br>Tutorial support staff<br>Recruitment & meals costs<br>Insurance<br>Other direct premises costs<br>Residential weekends and summer school<br>Staff housing costs<br>Depreciation charge<br>Bad debts<br>**Support costs:**<br>Service charges<br>Printing, stationery and photocopying<br>Postage and telephone<br>Branding and web design<br>IT costs<br>Gas & Electricity<br>Audit fees<br>Council expenses and meeting costs<br>Professional fees<br>Donations payable<br>Other support costs<br>**Total costs**|**2023**<br>**£**<br>241,156<br>10,920<br>20,784<br>10,287<br>23,572<br>61,611<br>2,620<br>26<br>20,123<br>127,932<br>12,059<br>934<br>-|**2022**<br>**£**<br>205,666<br>7,938<br>9,200<br>12,715<br>21,827<br>59,743<br>536<br>1,750<br>17,904<br>89,869<br>16,372<br>957<br>2,160|
|---|---|---|
||532,024<br>2,477<br>2,993<br>424<br>5,577<br>285<br>1,463<br>5,000<br>1,054<br>9,399<br>100<br>4,546|446,637<br>2,348<br>5,139<br>364<br>1,151<br>216<br>635<br>4,300<br>1,145<br>9,574<br>-<br>668|
||33,318|25,540|
||565,342|472,177|



## **3) ANALYSIS OF STAFF COSTS AND REMUNERATION TO KEY PERSONNEL** 

|Wages and salaries<br>Social security costs<br>Pension costs<br>Staff book allowances<br>The average number of persons employed by the Course during the year was: -<br>Academic staff<br>Tutorial support staff to include 22 sessional tutors (2022:17)|**2023**<br>**£**<br>227,689<br>12,867<br>27,638<br>2,275|**2022**<br>**£**<br>190,644<br>14,733<br>29,271<br>2,402|
|---|---|---|
||270,469|237,050|
||**2023**<br>5<br>28|**2022**<br>5<br>23|
||33|28|



There were no employees paid in excess of £60,000 in the year. £990 was paid to 7 trustees for council expenses. 

During the year one trustee, Revd Dr Jensen received £44,373 in his capacity as Principal. 

## **Key management personnel** 

During the year remuneration received by key management personnel totalled £48,651. 

14 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023** 

## **4) NET (EXPENDITURE)/INCOME** 

|**4)**<br>**NET (EXPENDITURE)/INCOME**||||
|---|---|---|---|
|Net (expenditure)/income is stated after charging:<br>Depreciation of tangible fixed assets<br>Auditors' remuneration<br>Auditors' remuneration- relating to previous years<br>Pension costs<br>**5)**<br>**FIXED ASSETS**<br>**Office**<br>**Computer**<br>**Equipment**<br>**Equipment**<br>**& Furniture**<br>**Cost**<br>**£**<br>**£**<br>At 1 September 2022<br>8,173<br>8,157<br>Additions<br>-<br>-<br>Disposals<br>-<br>-<br>At 31 August 2023<br>8,173<br>8,157<br>**Depreciation**<br>At 1 September 2022<br>7,399<br>6,191<br>Charge for Year<br>482<br>452<br>Eliminated on disposal<br>-<br>-<br>At 31 August 2023<br>7,881<br>6,643<br>**Net Book Value:**<br>At 31 August 2023<br>292<br>1,514<br>At 31 August 2022<br>774<br>1,966<br>All assets are used for charitable purposes.<br>**6)**<br>**DEBTORS**<br>Fees outstanding<br>Prepayments and accrued income<br>Other debtors<br>**7)**<br>**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>Trade creditors<br>Accruals and deferred income<br>Other creditors<br>Pension deficit reduction provision<br>Included in Accruals and deferred income above is the following deferred income:<br>As at 1 September 2022<br>Deferred income recognised in the year<br>Resources deferred during the year<br>At 31 August 2023|**Office**<br>**Equipment**<br>**& Furniture**<br>**£**<br>8,157<br>-<br>-|**2023**<br>**£**<br>934<br>5,000<br>-<br>27,638|**2022**<br>**£**<br>957<br>4,000<br>300<br>29,271|
|||**Library**<br>**£**<br>20,216<br>-<br>-|**Total**<br>**£**<br>36,546<br>-<br>-|
||8,157|20,216|36,546|
||6,191<br>452<br>-|20,216<br>-<br>-|33,806<br>934<br>-|
||6,643|20,216|34,740|
||1,514|-|1,806|
||1,966|-|2,740|
|||**2023**<br>**£**<br>17,375<br>45,342<br>-|**2022**<br>**£**<br>32,541<br>33,324<br>-|
|||62,717|65,865|
|||**2023**<br>**£**<br>21,639<br>29,159<br>7,659<br>-|**2022**<br>**£**<br>32,771<br>22,767<br>9,713<br>12,000|
|||58,457|77,251|
|||**£**<br>-<br>-<br>1,400||
|||1,400||



Deferred income represents income received for a student's fees for the academic year 2023/24. 

15 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023** 

## **8) PENSION PROVISIONS** 

|**PENSION PROVISIONS**<br>Balance as at 1st September<br>Deficit contributions (paid)/incurred<br>Interest cost<br>Remaining change to the balance sheet liability<br>Balance as at 31 August<br>Due in less than one year<br>Due in more than one year|**2023**<br>**£**<br>20,000<br>(5,000)<br>-<br>(15,000)|**2022**<br>**£**<br>12,000<br>(7,000)<br>-<br>15,000|
|---|---|---|
||-|20,000|
||-<br>-|12,000<br>8,000|



The charity had 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 had 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:<br>In less than one year<br>Between one and five years<br>Greater than five years|**2023**<br>**2022**<br>**£**<br>**£**<br>14,400<br>14,400<br>57,600<br>57,600<br>216,000<br>230,400<br>288,000<br>302,400<br>**Office Equipment**|**2023**<br>**2022**<br>**£**<br>**£**<br>14,400<br>14,400<br>57,600<br>57,600<br>216,000<br>230,400<br>288,000<br>302,400<br>**Office Equipment**|
|---|---|---|
||288,000|302,400|



Lease payment rentals recognised as an expense for the year amounted to £14,400 

|**10) RESTRICTED FUND**<br>Balance as at 1 September 2022<br>Incoming resources<br>Less outgoing resources<br>Transfer from Unrestricted Fund<br>Balance as at 31 August 2023|**Liturgy**<br>**Binders**<br>**Fund**<br>**£**<br>330<br>-|**Total**<br>**£**<br>330<br>-|
|---|---|---|
||330<br>-<br>-|330<br>-<br>-|
||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** 

|**ANALYSIS OF NET ASSETS BETWEEN FUNDS**|||||
|---|---|---|---|---|
|Restricted Funds<br>**Unrestricted Funds:**<br>General Fund|**Tangible**<br>**Fixed Assets**<br>**£**<br>-<br>1,806<br>1,806|**Net Current**<br>**Assets**<br>**£**<br>330<br>358,888|**Pension**<br>**Provisions**<br>**£**<br>-<br>-|**Total**<br>**£**<br>330<br>360,694|
|||359,218|-|361,024|



16 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

**EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023** 

## **12) PENSION SCHEMES** 

## **a) Church Workers Pension Fund** 

Eastern Region Ministry Course (DBS) 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: 

1 the Defined Benefits Scheme 

- 2 the Pension Builder Scheme, which has two subsections: 

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

## **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.  This does 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 DBS assets and liabilities to specific employers, since each employer, through the Life Risk Section, 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 during the year are contributions payable towards benefits and expenses accrued in that year (2023: £1,507 (2022: £4,521, 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 £(14,493) for 2023 (2022: £15,521). 

If, following an actuarial valuation of the Life Risk Pool, there is a surplus or deficit in the pool, 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 having taken advice from the Actuary. 

A valuation of DBS is carried out once every three years. The most recently finalised valuation 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. The calculations for this are under way. 

Following the 2019 valuation, the Employer 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 were agreed for 7 years from 1 April 2021 in respect of the shortfall in the Employer sub-pool. 

Due to the improvements in the projected funding position of the Fund, the Church of England Pensions Board agreed that deficit contributions should cease with effect from 31 December 2022 for employers whose pools were estimated to be materially in surplus. As a result, there is no obligation recognised as a liability within the Employer's financial statements as at 31 December 2022. A liability has been recognised at earlier dates. 

17 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023** 

The movement in the provision is set out below: 

|The movement in the provision is set out below:|||
|---|---|---|
||2023|2022|
|Deficit contribution paid<br>Interest cost (recognised in SoFA)<br>Remaining change to the balance sheet liability*(recognised in SoFA)<br>Balance sheet liability at 31 December 2022/2021<br>Balance sheet liability at 1 January 2022/2021|16,000<br>(3,000)<br>-<br>(13,000)|5,000<br>(3,000)<br>-<br>14,000|
||-|16,000|



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

Where relevant 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: 

|Discount rate|Dec-23|Dec-22|Dec-21|
|---|---|---|---|
||N/A|0.00%|1.50%|



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 section 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 means 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, 2023: £8,716 (2022: £10,113). 

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. 

For the Pension Builder Classic section, the 2019 valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review effective 1 January 2024, the Board chose to grant a discretionary bonus of 6.7% to both pensions not yet in payment and pensions in payment in respect of service prior to April 1997; and a bonus on pensions in payment in respect of post April 2006 service so that the pension increase was 5% (where usually it would be calculated based on inflation up to 2.5%). This followed improvements in the funding position over 2023. There is no requirement for deficit payments at the current time. 

For the Pension Builder 2014 section, the 2019 valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time. 

The next valuation is due as at 31 December 2022.  Calculations for this are currently under way. 

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 the failed employer's pension liabilities. 

18 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023** 

## **b) Clergy Pension Fund** 

Eastern Region Ministry Course participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which hold the assets of the schemes separately from those of the Responsible Bodies. 

Each participating Responsible Body in the Church of England Funde Pensiosn Scheme pays contributions at a common contribution rate applied to pensionable stipends. 

The scheme is considered to be 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 each specific Responsible Body, and this means 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, which were £24,322 in 2023 (2022: £19,189), plus any figures arising from contributions in respect of the Scheme's deficit (see below). The 2021 valuation showed the Scheme to be fully funded and as such in 2023, following the valuation results being agreed, the deficit contributions paid were £2,000 (2022: £3,000). 

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out as at 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on assets of £2,720m and a funding target of £2,160m, assessed using the following assumptions: 

- An average discount rate of 2.7%p.a; 

- RPI inflation of 3.6% p.a. (and pension increases consistent with this); 

- CPIH inflation in line with RPI less 0.8% pre 2030 moving to RPI with no adjustment from 2030 onwards; 

•  Increase in pensionable stipends in line with CPIH;  y , p y 2013 in line with the CMI2020 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7 and an initial addition to mortality improvements of 0.5% pa and an allowance for 2020 data of 0% (i.e. w2020 = 0%). 

Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the Scheme was fully funded. 

The deficit recovery contributions under the recovery plan in force at each 31 December were as follows: 

% of pensionable stipends 31 December 2021 7.1% payable from January 2021 to December 2022 31 December 2022 Nil 31 December 2023 Nil 

An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from April 2022, and remained in place until December 2022. 

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.  However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2022 is £nil.  The movement in the balance sheet liability over 2021 and over 2022 is set out in the table below. 

|Balance sheet liability at 1 January 2022/2021<br>Deficit contributions paid<br>Interest cost (recognised in SoFA)<br>Remaining change to the balance sheet liability*<br>(recognised in SoFA)<br>Balance sheet liability at 31 December 2022/2021|2023<br>4,000<br>(2,000)<br>-<br>(2,000)|2022<br>7,000<br>(4,000)<br>-<br>1,000|
|---|---|---|
||-|4,000|



- Comprises change in agreed deficit recovery plan and change in discount rate and inflation assumptions in between year-ends. 

19 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023** 

## **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. No assumptions are needed for December 2022 as there are no agreed deficit recovery payments going forward.  No price inflation assumption was needed for December 2021 since pensionable stipends for the remainder of the recovery plan were already known. 

||December|December|December|December|
|---|---|---|---|---|
||2023|2022|2021|2020|
|Discount rate|n/a|n/a|0.0%|0.2%|
|Price inflation|n/a|n/a|n/a|3.1%|
|Increase to total pensionable payroll|n/a|n/a|-1.5%|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 valuations for the accounting year ending 31st August are as follows: 

## **Church Workers Pension Fund (CWPF)** 

||2023|2022|
|---|---|---|
|Deficit contribution paid<br>Interest cost (recognised in SoFA)<br>Remaining change to the balance sheet liability*(recognised in SoFA)<br>Balance sheet liability at 31 December 2022/2021<br>Balance sheet liability at 1 January 2022/2021|16,000<br>(3,000)<br>-<br>(13,000)|5,000<br>(3,000)<br>-<br>14,000|
||-|16,000|



## **Church of England Funded Pension Scheme (CEFPS)** 

||2023|2022|
|---|---|---|
|Deficit contribution paid<br>Interest cost (recognised in SoFA)<br>Remaining change to the balance sheet liability*(recognised in SoFA)<br>Balance sheet liability at 31 December 2022/2021<br>Balance sheet liability at 1 January 2022/2021|4,000<br>(2,000)<br>-<br>(2,000)|7,000<br>(4,000)<br>-<br>1,000|
||-|4,000|



20 



DocuSign Envelope ID: 766C4C8E-2D99-4ED9-B41E-056142BFB0FD 

## **EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023** 

## **13) STATEMENT OF FINANCIAL ACTIVITIES DETAIL FOR YEAR ENDED 31st AUGUST 2022** 

|**Income from:**<br>Donations<br>Charitable activities:<br>- Theological education and ministerial training<br>Investments<br>**Total**<br>**Expenditure**<br>Charitable activities<br>**Total**<br>**Net (expenditure)/income**<br>Transfer between funds<br>**Other recognised gains/(losses**<br>Actuarial gains/(losses) on defined benefit pension<br>schemes<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>**Total funds carried forward**|**General**<br>**Fund**<br>**£**<br>1,350<br>522,488<br>557<br>524,395<br>472,177<br>472,177<br>52,218<br>-<br>(15,000)<br>37,218<br>339,612<br>376,830|**Restricted**<br>**Fund**<br>**£**<br>-<br>-<br>-|**Total**<br>**2022**<br>**£**<br>1,350<br>522,488<br>557|
|---|---|---|---|
|||-|524,395|
|||-|472,177|
|||-|472,177|
|||-<br>-<br>-|52,218<br>-<br>(15,000)|
|||-|37,218|
|||330|339,942|
|||||
|||330|377,160|



## **14) RELATED PARTY TRANSACTIONS** 

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

21