OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

← Eastern Region Ministry Course

2024-07-31-accounts

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

REGISTERED NUMBER - 04258802

EASTERN REGION MINISTRY COURSE (a company limited by guarantee)

ACCOUNTS

For the period ended 31 July 2024

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

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: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE

TRUSTEES AND DIRECTORS

Revd Stuart William Batten Revd Canon Dr Timothy Martin Bull Revd Dr Michael Frederick Fox (resigned 22/11/2024) Revd Timothy Edward Goodbody Revd William Douglas Fitzgerald Gulliford The Venerable Richard John StClair Harlow (Chair) Professor Joyce Margaret Hill The Venerable Alexander James Hughes (resigned 17/11/2023) Revd Dr Alexander Soenderup Jensen Right Revd Dr Jane Frances Mainwaring (appointed 12/04/2024) Revd Taurayi Theresa Musiwacho The Revd Dr Julie Mary Norris Mr Andrew John Roberts The Revd Haydon Du Garde Spenceley

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: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE PERIOD ENDED 31 JULY 2024

Trustees and Directors Report

The Trustees and Directors of the Council are pleased to present their annual report for the period ended 31st July 2024 under the Charities Act 2011, together with the audited accounts for the period 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 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.

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.

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.

2

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE PERIOD ENDED 31 JULY 2024

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

As expected, the number of ordinands nationally continued to be significantly lower than normally. This affected the intake of all Theological Education Institutions (TEIs). The new funding mechanism ‘Resourcing Ministerial Formation’ (RMF), has mitigated against this partially. Numbers of Reader/ Licensed Lay Ministry (LLM) students in our partner dioceses were slightly higher, but are still below pre-covid numbers. We had an intake of 22 new ordinands, 47 new Readers/LLMs in training and 3 new independent students. Our total student numbers were 44 ordinands, 40 Readers and LLMs in training and 8 independent students. Fifty-eight 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.

The national church initiated a review of TEI finances. Data gathering took place in the summer of 2024 and results have been shared with individual institutions in December 2024. No decisions have been made about how this will affect the financial support for TEIs in the future. We hope that this will lead to a review of the overall finding arrangements.

The new strategic plan, which was approved by Council in June 2023 is being implemented.

We conducted a review of our academic curriculum. The result is a streamlined curriculum in which ordinand and Reader/LLM course are better aligned, better meeting the needs of our partner dioceses and reducing duplication.

Our Administrator, Anne Sims left us in October 2023 and Rebecca Simms joined us as our new Administrator in the following November.

Financial Review

The Course continues to be funded by fees received from the Church of England. As predicted, ordinand numbers continued to be very low nationally. However, numbers for Readers/LLMs in training picked up again slightly. The new funding arrangements mitigated some of the effect of the lower ordinand numbers, but not all of it. The closure of Belsey Bridge led to significantly higher residential costs as the High Leigh Conference centre is significantly more expensive. For this year we are bearing the extras cost. From 2024/25 onwards we have reduced the number of residential weekends to five. Because of the change of the financial year (from 31 August to 31 July), the cost of the summer school expenditure is not included in these accounts, as this falls into the first month of the new financial year. As a result, the Council reports a surplus of £53,889.

It became clear during the year that that ordinand numbers would be low again in 2024/25, 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: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE PERIOD ENDED 31 JULY 2024

Reserves Policy

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

At the period end, the level of reserves was equivalent to circa. 8 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 period end were £412,098. Total reserves at 31st July 2024 are £414,913.

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 continues the review of the funding arrangements for TEIs. As yet no details have been made public. We will engage with this process as it evolves.

In the summer of 2024 we will embark on a curriculum review to ensure that our curriculum meets the formational requirements of our students and is responsive to the needs of our partner dioceses.

In May 2025 we will receive our five-yearly Periodic External Review, which is the main quality assurance measure for TEIs. The preparation and the review visit itself are important opportunities to ensure that our educational provision reflects best practice.

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:

4

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE PERIOD ENDED 31 JULY 2024

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 4th April 2025 and signed on behalf of the board of trustees by:

The Venerable Richard John StClair Harlow (Chair)

5

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

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 period ended 31 July 2024 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 July 2024 and of its incoming resources and application of resources, including its income and expenditure, for the period 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.

6

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

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:

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: 29ECB35C-0320-4842-8507-20BAC272786C

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 Date: 15 April 2025

8

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE STATEMENT OF FINANCIAL ACTIVITIES (Incorporating the income and expenditure account) FOR THE PERIOD ENDED 31 JULY 2024

Note Unrestricted
Funds
£
Income from:
Donations
658
Charitable activities:
596,909
Investments
9,578
Total
607,145
Expenditure
Charitable activities
2
554,671
Total
554,671
Net income/(expenditure)
52,474
Transfer between funds
-
Other recognised gains/(losses)
12
-
Net movement in funds
52,474
Reconciliation of funds:
Total funds brought forward
360,694
Total funds carried forward
11
413,168
- Theological education and ministerial
training
Acturial gains/(losses) on defined benefit
pension schemes		 Restricted
Funds
£
-
1,415
-
1,415
-
-
1,415
-
-
1,415
330
1,745		 1st Sept
2023 - 31
July 2024
Total Funds
2024
£
658
598,324
9,578
608,560
554,671
554,671
53,889
-
-
53,889
361,024
414,913		 1st Sept
2022 - 31
August
2023
Total Funds
2023
£
7,374
522,015
4,817
534,206
565,342
565,342
(31,136)
-
15,000
(16,136)
377,160
361,024

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

9

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

REGISTERED NUMBER - 04258802

EASTERN REGION MINISTRY COURSE STATEMENT OF FINANCIAL POSITION AS AT 31 JULY 2024

Note As at 31 July As at 31 July As at 31 August As at 31 August
2024 2023
FIXED ASSETS £ £ £ £
Tangible Assets 5 1,070 1,806
CURRENT ASSETS
Debtors 6 85,701 62,717
CBF Deposit Account 108,934 103,459
Cash at Bank 271,398 251,499
TOTAL CURRENT ASSETS 466,034 417,675
CURRENT LIABILITIES
Creditors 7 52,191 58,457
52,191 58,457
NET CURRENT ASSETS 413,843 359,218
TOTAL ASSETS LESS CURRENT LIABILITIES TOTAL ASSETS LESS CURRENT LIABILITIES 414,913 361,024
DEFINED BENEFIT PENSION 8 - -
SCHEME LIABILITY
NET ASSETS 414,913 361,024
THE FUNDS OF THE CHARITY:
Unrestricted Fund:
General Fund 413,168 360,694
Restricted Fund 10 1,745 330
TOTAL CHARITY FUNDS 414,913 361,024

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 4th April 2025 and signed by:

……………………………….

The Venerable Richard John StClair Harlow (Chair)

……………………………… Revd Dr Alexander Soenderup Jensen

10

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE CASH FLOW STATEMENT FOR THE PERIOD ENDED 31 JULY 2024

Total Total
2024 2023
£ £
Cash flows from operating activities:
Net cash (used in)/provided by operating activities 17,078 (43,225)
Cash flows from investing activities:
Interest from investments 9,578 4,817
Purchase of property, plant and equipment - -
Net cash provided by investing activities 9,578 4,817
Cash flows from financing activities
Interest paid (1,282) (440)
Change in cash and cash equivalents in the reporting
period 25,374 (38,848)
Cash and cash equivalents at the beginning of the
reporting period 354,958 393,806
Cash and cash equivalents at the end of the reporting
period 380,332 354,958
Summary of the cash and cash equivalents at the end
of the reporting period
Cash at bank and in hand 380,332 354,958
380,332 354,958
Reconciliation of net (expenditure)/income to net cash flow from operating activities
Net (expenditure)/income for the reporting period 53,889 (31,136)
Adjustments for:
Depreciation charges 735 934
Gains/(losses)losses on defined benefit pension scheme - 15,000
Interest from investments (9,578) (4,817)
Interest paid shown in financing activities 1,282 440
Decrease/(increase) in debtors (22,984) 3,148
Decrease/(increase) in creditors (6,266) (26,794)
Net cash (used in)/provided by operating activities 17,078 (43,225)

11

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31 JULY 2024

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.

On 23 April 2024, the charitable company changed its accounting period to 31 July 2024.

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.

12

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31 JULY 2024

1) ACCOUNTING POLICIES (continued)

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.

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 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: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31 JULY 2024

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
Audit fees
Council expenses and meeting costs
Professional fees
Donations payable
Other support costs
Total costs		 2024
£
224,271
8,700
19,255
7,997
35,153
52,089
3,005
4,628
19,425
104,710
10,192
735
-		 2023
£
241,156
10,920
20,784
10,287
23,570
61,611
2,620
26
20,124
127,932
12,059
934
-
490,160
2,207
2,113
529
3,013
5,684
1,070
5,960
831
9,012
-
34,094		 532,025
2,477
2,993
424
5,577
285
1,462
5,000
1,054
9,399
100
4,546
64,511 33,318
554,671 565,342

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 to include 25 sessional tutors (2023:22)		 2024
£
211,377
16,806
25,192
3,190		 2023
£
227,689
12,867
29,271
2,402
256,565 272,229
2024
5
39		 2023
5
28
44 33

There were no employees paid in excess of £60,000 in the year. £916 was paid to 5 trustees for council expenses.

During the period one trustee, Revd Dr Jensen received £41,419 in his capacity as Principal.

Key management personnel

During the period remuneration received by key management personnel totalled £45,379.

14

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31 JULY 2024

4) NET (EXPENDITURE)/INCOME

Net (expenditure)/income is stated after charging:
Depreciation of tangible fixed assets
Auditors' remuneration
Auditors' remuneration- relating to previous years
Pension costs		 2024
£
735
5,960
-
25,192		 2023
£
934
5,000
-
29,271

5) FIXED ASSETS

Office
Computer
Equipment
Equipment
& Furniture
Cost
£
£
At 1 September 2023
8,173
8,157
Additions
-
-
Disposals
-
-
At 31 July 2024
8,173
8,157
Depreciation
At 1 September 2023
7,881
6,643
Charge for Year
283
452
Eliminated on disposal
-
-
At 31 July 2024
8,164
7,095
Net Book Value:
At 31 July 2024
8
1,062
At 31 August 2023
292
1,514
All assets are used for charitable purposes.
6)
DEBTORS
Fees outstanding
Prepayments and accrued income
Other debtors
7)
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Accruals and deferred income
Other creditors
Pension deficit reduction provision
Included in Accruals and deferred income above is the following deferred income:
As at 1 September 2023
Deferred income recognised in the year
Resources deferred during the year
At 31 July 2024		 Office
Equipment
& Furniture
£
8,157
-
-		 Library
£
20,216
-
-		 Total
£
36,546
-
-
8,157 20,216 36,546
6,643
452
-		 20,216
-
-		 34,740
735
-
7,095 20,216 35,475
1,062 - 1,070
1,514 - 1,806
2024
£
61,210
24,491
-		 2023
£
17,375
45,342
-
85,701 62,717
2024
£
16,010
28,283
7,898
-		 2023
£
21,639
29,159
7,659
-
52,191 58,457
£
1,400
(1,400)
13,465
13,465

Deferred income represents income received from RMF Innovation Funding for the academic year 2024/25.

15

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31 JULY 2024

8) PENSION PROVISIONS

PENSION PROVISIONS
Balance as at 1st September
Deficit contributions (paid)/incurred
Interest cost
Remaining change to the balance sheet liability
Balance as at 31 July/31 August		 2024
£
-
-
-
-		 2023
£
20,000
(5,000)
-
(15,000)
- -

The charity had entered into a deficit recovery plan in respect of the Church of England Funded Pension Scheme which ceased with effect from 31 December 2022, see note 12. As a result, there is no obligation recognised as a liability within the Employer’s financial statements as at 31 December 2023 or 31 December 2024.

The charity had entered into a deficit recovery plan in respect of the Church Workers Pension Fund which ceased with effect from 1 January 2023, see note 12. As a result, there is no obligation recognised as a liability within the Employer’s financial statements as at 31 December 2023 or 31 December 2024.

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		 2024
2023
£
£
14,400
14,400
57,600
57,600
199,200
216,000
271,200
288,000
Office Equipment		 2024
2023
£
£
14,400
14,400
57,600
57,600
199,200
216,000
271,200
288,000
Office Equipment
271,200 288,000

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

10) RESTRICTED FUND
Balance as at 1 September 2023
Incoming resources
Less outgoing resources
Transfer from Unrestricted Fund
Balance as at 31 August 2024		 Liturgy
Binders
Fund
£
330
-		 RMF
Innovation
Fund
£
-
1,415		 Total
£
330
1,415
330
-
-		 1,415
-
-		 1,745
-
-
330 1,415 1,745

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

The RMF Innovation Fund was established via a grant from The Church of England for Online Study skills and Resource Bank purposes.

11) ANALYSIS OF NET ASSETS BETWEEN FUNDS

Restricted Funds
Unrestricted Funds:
General Fund		 Tangible
Fixed Assets
£
-
1,070
1,070		 Net Current
Assets
£
1,745
412,098		 Pension
Provisions
£
-
-		 Total
£
1,745
413,168
413,843 - 414,913

16

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31 JULY 2024

12) PENSION SCHEMES

a) Church Workers Pension Fund

Eastern Region Ministry Course participates in the Defined Benefits Scheme section of CWPF for lay staf, which is now closed to future accrual. The Scheme is administered by the Church of England Pensions Board, which holds the assets 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 (2024: £nil (2023: £1,507, 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 £nil for 2024 (2023: £(14,493)).

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. At the most recent valuation at 31 December 2022 there was a surplus of £73.6m.

The next actuarial valuation is due at 31 December 2025

Since 31 December 2023, the Board has entered into a full buy-in agreement with Aviva to insure all accrued benefits within the DBS of the CWPF.

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 2023 or 31 December 2024.

17

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31 JULY 2024

The movement in the provision is set out below:

The movement in the provision is set out below:
2024 2023
Deficit contribution paid
Interest cost (recognised in SoFA)
Remaining change to the balance sheet liability*(recognised in SoFA)
Balance sheet liability at 31 December
Balance sheet liability at 1 January		 -
-
-
-		 16,000
(3,000)
-
(13,000)
- -

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-24 Dec-23 Dec-22
N/A N/A 0.00%

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, 2024: £9,535 (2023: £8,716).

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 2022.

For the Pension Builder Classic section, the 2019 valuation revealed a surplus of £34.8m on the ongoing assumptions used. At the most recent annual review effective 1 January 2025, 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 2.7% (where usually it would be calculated based on inflation up to 2.5%). This followed improvements in the funding position over 2024. There is no requirement for deficit payments at the current time.

The next valuation is due as at 31 December 2025.

For the Pension Builder 2014 section, the valuation revealed a surplus of £8.5m 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 the failed employer's pension liabilities.

18

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31 JULY 2024

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 £18,874 in 2024 (2023: £24,322), 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 2024, following the valuation results being agreed, the deficit contributions paid were £nil (2023: £2,000).

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:

• Mortality in accordance with 90% of the S3NA tables, with allowance for future improvements in mortality rates from 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 31 December 2024 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 2023 and 31 december 2024 is nil. The movement in the balance sheet liability over 2022 and over 2023 is set out in the table below.

19

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31 JULY 2024

12) PENSION SCHEMES (continued)

Balance sheet liability at 1 January
Deficit contributions paid
Interest cost (recognised in SoFA)
Remaining change to the balance sheet liability*
(recognised in SoFA)
Balance sheet liability at 31 December		 2024
-
-
-
-		 2023
4,000
(2,000)
-
(2,000)
- -

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 period ending 31st July are as follows:

Church Workers Pension Fund (CWPF)

2024 2023
Deficit contribution paid
Interest cost (recognised in SoFA)
Remaining change to the balance sheet liability*(recognised in SoFA)
Balance sheet liability at 31 December 2023/2022
Balance sheet liability at 1 January 2023/2022		 -
-
-
-		 16,000
(3,000)
-
(13,000)
- -
Church of England Funded Pension Scheme (CEFPS)
2024 2023
Deficit contribution paid
Interest cost (recognised in SoFA)
Remaining change to the balance sheet liability*(recognised in SoFA)
Balance sheet liability at 31 December 2023/2022
Balance sheet liability at 1 January 2023/2022		 -
-
-
-		 4,000
(2,000)
-
(2,000)
- -

20

Docusign Envelope ID: 29ECB35C-0320-4842-8507-20BAC272786C

EASTERN REGION MINISTRY COURSE NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 31 JULY 2024

13) STATEMENT OF FINANCIAL ACTIVITIES DETAIL FOR YEAR ENDED 31st AUGUST 2023

Income from:
Donations
Charitable activities:
- Theological education and ministerial training
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		 General
Fund
£
7,374
522,015
4,817
534,206
565,342
565,342
(31,136)
-
15,000
(16,136)
376,830
360,694		 Restricted
Fund
£
-
-
-		 Total
2023
£
7,374
522,015
4,817
- 534,206
- 565,342
- 565,342
-
-
-		 (31,136)
-
15,000
- (16,136)
330 377,160
330 361,024

14) RELATED PARTY TRANSACTIONS

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

21