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← St Mellitus College Trust

2021-07-31-accounts

St Mellitus College Trust Annual Report

& Financial Statements

Year Ended 31 July 2021

Charity number: 1094157

Company number: 4546328

St Mellitus College Trust

(A company limited by guarantee)

Contents
Report of the Trustees 1
Statement of Corporate Governance and Internal Control 12
Audit Report 16
Statement of Financial Activities 20
Balance Sheet 21
Cash Flow Statement 22
Notes forming part of the financial statements 23

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St Mellitus College Trust

(A company limited by guarantee)

Report of the Trustees

for the year ended 31st July 2021

The Trustees are pleased to present their annual report together with the financial statements of the charity for the year ended 31st July 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: 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 (FRS102) including Update Bulletin 2 (effective 1st January 2015).

PURPOSES AND ACTIVITIES

The purposes of the charity as defined in the Memorandum of Association are:

The overall vision of the charity is to resource the mission of the whole church through providing training in theology and mission. In particular, it aims to train ministers of religion and others so as to equip them to lead, encourage and support the development of Christian communities throughout the UK. This in turn benefits wider society through the church’s involvement in communities with, for example, youth work and urban regeneration projects.

We seek to achieve this vision by resourcing the mission of the church through theological learning and wisdom. We are committed to the ‘faith once handed on to the saints’, wanting to hold this in a generous, enquiring and open way that is responsive to a changing world. We believe that we should engage with theology in the context of …

The activity of the charity in achieving this vision is to run a suite of Higher Education and other courses. This is done jointly with St Paul's Theological Centre which works closely together with the charity to offer courses and training under the banner of St Mellitus College ("the College").

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In seeking to measure success the charity primarily looks to the recruitment levels for its programmes. As recruitment is mostly driven by word of mouth recommendations from existing students, the ongoing level of student recruitment indicates that we continue to succeed in achieving our objectives.

We also have extensive student feedback processes and since the academic year 2016/17 have been participating in the National Student Survey. We are subject to regular scrutiny by the Quality Assurance Agency for Higher Education who also indicate positively about the quality of our programmes.

Public Benefit

The trustees have a statutory duty under the Charities Act 2011 (s 17) to have regard to the guidance issued from time to time by the Charity Commission. The trustees have read the guidance Charities and Public Benefit and the supplementary guidance in The Advancement of Religion for the Public Benefit and have had regard to it in making relevant decisions. The trustees have also read Analysis of the Law underpinning “the Advancement of Religion for the Public Benefit” published by the Charity Commission.

The trustees believe that this report taken as a whole provides evidence of the public benefit of the charity’s work.

The principal public benefits of the charity (for the narrow purposes of secular charity law) are the advancement of the Christian religion by training ministers of religion and others who lead, encourage and support members of the various and diverse communities throughout the dioceses of London, Chelmsford, Blackburn, Carlisle, Chester, Liverpool, Manchester, Truro, Exeter, Southwell & Nottingham, Leicester and Derby and also further afield by and in -

Fundraising

The trustees are committed to maintaining the highest legal and ethical standards in the way that the charity undertakes its fundraising activities. All fundraising takes place in-house and the charity does not use any professional fundraisers. The charity is committed to abiding by the Code of Fundraising Practice and to the Fundraising Promise. The charity has not received any complaints with regard to its fundraising practice during the period under review.

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Volunteers

The charity makes use of a number of volunteers to help with various parts of its operation including visiting lecturers, chaplains and refreshment servers. The Trustees would particularly wish to pay tribute to Miss Rosie Allard who has served as the College's London based volunteer librarian since 2013 and who sadly died in November 2021. Rosie made a very significant contribution to the life and development of the college and will be much missed.

ACHIEVEMENTS AND PERFORMANCE

In the year under review there have been three matters of particular significance to affect the college-

Other matters of achievement and performance are noted as follows -

The Course is run on a part-time basis usually over three years for Anglican candidates, to study towards graduation and ordination. The students are normally (when not subject to Covid restrictions) required to attend for classes one evening a week during term time together with a number of residential weekends and one residential week during each academic year. The Course continues to be successful in recruiting good numbers of ordinands and independent students.

The College has continued to develop the Peter Stream which is a discernment pathway towards Church of England ordination for leaders who have faced exclusion for reasons of ethnicity, social background or education. The scheme is a one-year programme that runs in conjunction with a discernment process. The college provides training, study and pastoral support.

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During the year under review our delivery centre at Liverpool Cathedral, covering the five north-west dioceses of Blackburn, Carlisle, Chester, Liverpool and Manchester, which opened in 2013 continued to thrive. It had a total of 84 students (2019/20: 94) on its higher education courses and also ran a local version of the Beginning Theology course. As noted above, this centre closed at the end of July 2021 with the exception of a small number of students on teach out programmes.

Our delivery centre in Plymouth which opened in September 2017 and covers the region of the dioceses of Exeter and Truro, with additional students coming from the diocese of Bath and Wells, had a total of 32 students (2019/20: 38) in the year under review. We are finding recruitment for this centre challenging, with more ordinands being on two year pathways rather than the three year pathway which is normal for our model of training. Despite these challenges, we are committed to establishing this centre as a viable resource for the region in which it is set.

Our new delivery centre in Nottingham, which opened in September 2019, was in its second year during the period under review. There were a total of fifty six students and the centre is rapidly establishing itself as a key part of the college.

St Paul’s Theological Centre (SPTC), our partner constituent member, has a lease on the former church of St Jude, Courtfield Gardens in Earls Court which it operates as the London base for the College. During 2018 SPTC had to spend via an associated charity some £1.2m on repairs to the stonework of the church spire which was found to be in a dangerous state. The charity suceeded in raising grants and gifts towards the repayment of this cost in the year 2018/19 leaving a balance outstanding of £700k. This debt has been covered partly from SPTC reserves, partly from the reserves of the PCC of the parish of Holy Trinity Brompton and partly by a loan from the Diocese of London which needs to be repaid. Given the savings that were made as result of the Covid-19 pandemic (see financial review) the charity was able to make a grant of £225k towards this cost. This sum represents 50% of the balance left after fundraising and a promised grant from the Diocese of London.

In all this year, including SPTC students, the College had 349 ordinands in training and delivered accredited courses to more than 220 other students.

Following the completion of both the June and November exam boards, the class of 2021 included 166 students who graduated with undergraduate awards validated by one or other of our two partner universities with 8 being first class awards. In addition, 40 students graduated with postgraduate awards with 4 of these being awarded distinctions.

The 'Beginning Theology' course continues to thrive. In the Summer Term of 2021 there were 25 (2020: 28) students enrolled. This course is intended as a route into higher education for those with limited previous educational experience. Since establishing this course in 2009 a significant number of former students have gone on to study at a higher level with some now having been ordained as Church of England ministers. A version of this course was delivered during the year at the Liverpool centre.

Most of our academic programmes are validated by Durham University as part of the Church of England's Common Awards programme and this has become an established relationship. Some other awards, notably the Youth Ministry programme and some postgraduate provision continue to be validated by Middlesex University.

On 9th September 2020 we signed an agreement with Durham University which gives us the ability to offer a PhD programme. Under this arrangement, the students are Durham University students but the college shares in the supervision arrangements. At this time no students have enrolled on the programme.

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In addition to the formal academic programmes, the College is increasingly being used as a theological resource throughout the regions that it serves. For example, the Diocese of London is involving the College in its Continuing Ministerial Education programme. We have also established an Alumni Association in order that we can maintain contact with former students and that we can continue to resource them theologically as they utilise their learning in the wider church.

The College also hosts a series of high level theological lectures which are open to the public. This year these have again been generously resourced financially by the McDonald Agape Foundation. This foundation has also made further generous gifts enabling the college to appoint the former Archbishop of Canterbury, the Most Reverend Rowan Williams, to the post of Professor of Christian Theology and also to undertake a research project under the direction of our President, the Right Reverend Doctor Graham Tomlin, into the concept of 'Generous Orthodoxy' which is a key component of the college's values.

In terms of reviewing performance against agreed objectives, the charity has maintained and developed successful delivery of full time and part time ordination training to an increased number of students. This is to the benefit of the Church of England in its drive to increase priestly vocations. The charity has also theologically trained an increased number of lay people which should facilitate a contribution towards a better society in a range of social settings.

Student numbers in the reporting period have again increased, meaning that there has been growth every year since the college was founded. Recruitment onto our Youth Ministry programme and at our South West (Plymouth) delivery centre continue to be a challenge.

Since March 2019 the college has been regulated by the Office for Students (OfS). The college is a Registered Provider of Higher Education in the Approved (Fee Cap) category.

We have again participated in the National Student Survey (NSS). This year the Overall Student Satisfaction score is 92.31%, which is a very slight reduction from last year, but is actually a more impressive result, considering the dramatic reduction of student satisfaction across the sector during the pandemic (UK average has gone down to 75.41%). St Mellitus is now scoring nearly 17 percentage points above the national average in this question.

The Quality Assurance Agency for Higher Education (QAA) is the body tasked by the OfS with reviewing and monitoring the quality of the higher education sector. Given their new, risk based, approach to monitoring it is now some years since we have interacted with them. Details of the last review (2017) areavailable on the QAA website.

In November 2017 the college was subject to a Periodic External Review ("PER") performed jointly by the Ministry Division of the Church of England and the Common Awards Team of Durham University. In summary this concluded as follows -

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Other positive indicators continue to be the fact that our drop out rates are lower than average for our sector and also that ordinands completing our programmes continue to find training posts to move into which are appropriate to the training that they have received whilst with us.

Assessing the impact of the charity’s work can only be done by reference to the success of churches which are run by church leaders who have been trained by the charity. For both theological and practical reasons this is challenging to benchmark, however we are hopeful that we may be able to develop an approach working with our alumni which may make it possible to undertake benchmarking in the future.

Ongoing and future performance of the charity is not only dependent on continuing to provide a high quality programme of academic awards but also on external factors which affect the number of students that we are able to recruit. These factors include the continued availability of student finance and especially the capability of the Church of England to recruit and fund future ordinands. Resulting from the fact that nearly fifty percent of current serving clergy are due to retire in the period 2015 to 2025, the national church has decided to increase target ordinand numbers by fifty percent over the next few years. This is however dependent on sufficient people putting themselves forward for this vocation.

FINANCIAL REVIEW

The headlining factor affecting the charity's finances in the year under review is the consequences of the Covid19 pandemic. As all teaching had to be on line for the whole year and we were unable to hold our normal ordinand residential events, there were considerable cost savings. In addition to the cancellation of all residential events, there were cost savings in the areas of student catering and also staff travel as it was not possible for staff to visit students in their placement contexts. This means that not only were we able to make a contribution of £225k towards the cost of the spire repairs (see above) we also made an overall surplus of £470k compared to our normal target of £40k. As a result of this and particularly in the light of the adverse condequences of the pandemic expected in future years (see Plans for Future Periods), the trustees have decided to place £400k of this surplus into a Contingency Reserve to be used against several future financial challenges, particularly the consequences of the reduced student intake in September 2021.

The charity is obliged to apply the Financial Reporting Standard (FRS 102) in preparing its financial statements. This includes a requirement for the charity to take onto its Balance Sheet its liability to contribute to the deficit recovery plan of the Church of England's Clergy Pension Scheme. As at 31st July 2021 this figure was £16,444 (31 July 2020: £50,216) and the available reserves are reduced by this amount. Excluding this liability, the total funds of the charity are £1,025,122 (31 July 2020: £588,594).

The General Fund showed a surplus for the year of £157,582 (2020: £174,184). This figure does not include pension deficit recovery contribution costs of £24,085 or the decrease in the pension deficit liability. Together with a decrease in the pension deficit liability reserve of £33,772, mainly resulting from reduced staff numbers in the scheme and the transfer to the Contingency Reserve, the reserves on the General Fund at 31st July 2021 amounted to £467,796 (2020: £387,444).

The Designated Fund for the operation of the Liverpool centre showed a surplus for the year of £149,896 (2020: £81,798). As this centre was closed on the 31st July 2021, the cumulative balance on this fund of £293,095 was transferred to the General Fund.

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The Designated Fund for the operation of the Plymouth centre showed a surplus of £54,853 (2020: £741) which means that the cumulative deficit on this fund as at 31st July 2021 is £3,548 (2020: £58,401). Opening a new centre always results in significant negative cash flow in the early years, and this has been partly covered by loans totalling £60,000 at the year end from the Dioceses of Exeter and Truro. In addition these two dioceses have provided guarantees of up to £60,000 for any outstanding cumulative deficits after five years of operation of the centre.

The Designated Fund for the new Nottingham centre shows a surplus of £145,166 (2020: £8,805) for its second year of operation which means that the cumulative deficit on this fund as at 31st July 2021 is £136,216 (2020: £8,951 deficit). The negative cash flow during the start up period is covered by a loan facility of up to £90,000 from the three local supporting dioceses which has not had to be drawn down.

Details of movements on the other Designated and Restricted funds are shown in Note 13.

Pricing policy

Fees for Church of England ordinands are fixed for all approved theological education institutions by the Ministry Division of the church’s Archbishops’ Council. Independent student fees are fixed by reference to other institutions offering similar courses and also the Fee Cap imposed by the Office for Students.

Principal Funding Source

The College’s main source of funding is student fees which this year amounted to £3,572,848 (2020: £3,297,758), of which £2,539,988 (71%) came from the Archbishops’ Council of the Church of England for the training of Church of England ordinands (mostly via dioceses).

Investment Policy

Under the Memorandum and Articles of Association, the charity has the power to make any investment which the trustees see fit, after obtaining advice from a financial expert. Funds which are surplus to immediate requirements are placed on deposit with the CBF Church of England Funds.

Reserves Policy

The trustees have considered the need to accumulate funds in reserves to be held in the event of future uncertainties. The trustees consider that the most appropriate level of free reserves to be held on an ongoing basis would be the equivalent of one term’s expenditure. Based on current projections it is estimated that one term’s expenditure would be in the region of £456,000 which compares with the current level of available unrestricted reserves (before the Pension Deficit Liability) of £1,012,020 (excluding fixed assets: £975,310). Included in these reserves are the Contingency Reserve (see above) of £400,000 being held to cover future losses resulting from the Covid-19 pandemic. Without this Contingency Reserve unrestricted reserves would be £612,020 compared to the target of £456,000.

The Financial Reporting Standard for charities (FRS 102) requires that charities have to provide for and disclose their share of any pension scheme deficit of which they are a member. The charity is showing a deficit of £16,444 at 31st July 2021 (2020: £50,216). Additional contributions are being paid to the Church of England Funded Pension Scheme in order to reduce the deficit to zero by the 31st December 2022 as detailed in the Accounting Policies note. In accordance with Charity Commission guidance, the pension deficit liability is not included in the calculation of free reserves as the impact on the charity's cash flow is not immediate. This liability reduced significantly as a result of the 2018 revaluation of the scheme.

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PLANS FOR FUTURE PERIODS

The charity plans to continue to provide a first class programme of training for future church ministers, both ordained and lay, and to develop opportunities for and the variety of such training.

The most significant factor affecting the immediate future of the college is the significant reduction in student recruitment experienced in September 2021 - a decline of 20% over the previous year compared with a 5% decline over the whole higher education sector. It is believed that this decline is a consequence of the Covid-19 pandemic as the whole recruitment cycle, including open days, was conducted online and also the Church of England's ordinand selection process was also entirely online. We are expecting numbers to recover in September 2022. As detailed in the Financial Review, we will be able to use the Contingency Reserve to cover the reduced fees that this decline will cause over the next three years.

Following an initial experiment over the last two years, a new pathway has been launched with an intake of 10 candidates in September 2021. The Caleb Stream is a discernment pathway towards Church of England ordination for mature lay leaders with leadership experience, enabling them to train for the diaconate within one year. With often one priest assigned to serve multiple rural parishes, this stream aims to train and mobilise a generation to serve in parishes across the UK.”

The Peter Stream continues to grow with September 2021 seeing an intake of 28 candidates. This growth is expected to further accelerate in the years ahead.

The delivery centre in Nottingham took in its third cohort of students in September 2021 and it is now established as a key part of the college. We hope that student numbers will grow further as St Mellitus College, East Midlands becomes better known and respected in the region.

At the request of the Bishops of Derby, Leicester and Southwell & Nottingham, St Mellitus College, East Midlands has started offering a part time, course based, ordinand training pathway based in Leicester as from September 2021. This started with a cohort of eight ordinands. Utilising the experiences from online delivery gained during the pandemic, we are trialling a hybrid model of delivery which doesn't require students to attend in person every week. Some of the London based, Caleb Stream students are engaging with the online elements of this hybrid model. We are hopeful that this Leicester delivery centre will attract some independent students as well as the ordinands.

Our Plymouth delivery continues to struggle to recruit students. We are hopeful that the appointment of a new Centre Director will begin to address this. We are committed to developing this centre so that it becomes fully viable in terms of both student experience and finances.

REFERENCE AND ADMINISTRATIVE DETAILS

Charity Name: St Mellitus College Trust Charity registration number: 1094157 Company registration number: 4546328 Principal Address and 24 Collingham Road Registered Office London SW5 0LX Website www.stmellitus.ac.uk

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Advisers

Auditors: Moore Kingston Smith LLP, Devonshire House, 60 Goswell Road, London EC1M 7AD Solicitors: Winkworth Sherwood, Minerva House, 5 Montague Close, London SE1 9BB Bankers: Barclays Bank PLC, 11 Bank Court, Hemel Hempstead, Hertfordshire HP1 1BX CAF Bank Ltd, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4QJ NatWest Bank plc, 55 Kensington High Street, London W8 5ZG

CBF Church of England Funds, Senator House, 85 Queen Victoria Street, London EC4V 4ET

Directors and trustees

The directors of the charitable company (the charity) are its trustees for the purposes of company law.

The trustees and officers serving during the year and since the year end were as follows together with details of their nominations:

The Right Reverend and Right Honourable Dame S Mullally (Bishop of London) [also Member] The Right Reverend Doctor G Francis-Dehqani (Bishop of Chelmsford) [also Member] - from 11[th] March 2021 The Right Reverend P Hill (Acting Bishop of Chelmsford) [also Member] - until 11[th] March 2021 The Reverend N Gumbel (Representative of St Paul's Theological Centre - also Member) Mr J Ball Bishop of Chelmsford The Reverend R Coates Joint The Reverend A Eleyae - resigned 11[th] October 2021 Joint The Reverend Canon L Nsenga-Ngoy Joint Sir H Sants Bishop of London The Reverend Dr B Sargent General Synod Mrs R Stewart St Paul’s Theological Centre The Right Reverend Dr G Tomlin (President) Mr A Winther Joint The Reverend K Wharton Joint

Key management personnel

The Trustees delegate day-to-day management of the charity to the senior management consisting of the Dean (Reverend Russell Winfield) together with the Dean of Ministry (Reverend Canon Doctor Sharon Prentis), the Academic Dean (Doctor Sara Schumacher) and the Chief Operating Officer (Mrs Tilly Bacon) together with the Bursar (Reverend Neil Taylor).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The organisation is a charitable company limited by guarantee, incorporated under the name of North Thames Ministerial Training Partnership on the 26[th] September 2002 and registered as a charity on the 11[th] October 2002.

The company is established under a Memorandum of Association which sets out the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1 each.

The company changed its name by Special Resolution on 18[th] March 2008 to St Mellitus College Trust and adopted new Memorandum and Articles of Association on that date. On 15th June 2019 further new Memorandum and Articles of Association were adopted incorpoporating new procedures for nominating and appointing trustees for the Charity.

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Appointment of Trustees

The directors of the charitable company (“the charity”) are its trustees for the purpose of charity law and throughout this report are collectively referred to as its trustees.

Under the Articles of Association adopted on the 15th June 2019 the Trustees consist of at least three but not more than thirteen individuals nominated to serve as follows: The Bishop of Chelmsford, The Bishop of London, a Trustee representative of St Paul's Theological Centre (together constituting the Members), one trustee nominated by each of the Members,one trustee nominated by the General Synod of the Church of England, no more than five further Trustees appointed jointly and unanimously by the Members and the President for the time being of the College.

Revd Canon Lusa Nsenga-Ngoy, Mr Angus Winther and Revd Kate Wharton retire by rotation and offer themselves for re-nomination.

Trustee Induction and Training

The Joint Chairs of the Trustees liaise with newly appointed trustees upon their appointment in order to devise a training and induction package appropriate to their skills and experience.

Organisational Structure

The board of trustees, who meet tri-annually, administers the charity. The trustees delegate the management of the day-to-day operations of the charity to an Executive Committee, the Dean of the College and the team of staff who are employed by the charity. Details of the senior management is shown in the Reference and Administrative Information section above.

The board of trustees define the strategic objectives for the charity and agree an annual budget together with a long term financial plan. The authority delegated to the senior management is to run the day-to-day operations of the charity within these objectives and budgets. Anything outside these requires the agreement of the Trustees according to defined procedures.

Pay and remuneration of senior staff

The Dean (who is remunerated by St Paul’s Theological Centre) and one Assistant Dean as ordained clergy are remunerated according to the Archbishops’ Council of the Church of England’s published remuneration scale for ordained college staff (the “Lichfield Scale”). The other, non-ordained, Assistant Dean is remunerated by St Paul’s Theological Centre.

Related Parties

All the Trustees represent other legal bodies within the wider church and thus these could be regarded as related parties. Further particulars are provided in Note 7 to the Financial Statements.

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Risks and uncertainties

The trustees have conducted their own review of the major risks to which the charity is exposed and systems have been established to mitigate those risks. The external risks to funding are dependent on a viable number of students choosing the course for their training. The academic content of the course is considered carefully to ensure that all the requirements of the Church are fulfilled and in this way the Church is expected to continue utilising the course for their candidates. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects and to ensure consistent quality of delivery for all operational aspects of the charity. These procedures are documented in a risk register which is regularly updated and reviewed.

STATEMENT OF DISCLOSURE TO AUDITORS

In so far as the trustees are aware at the time of approving this trustees’ annual report:

This report has been prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small entities.

Approved by the Trustees on 24th February 2022 and signed on their behalf by

~~zi~~[phan][Took] Chair: Rt Revd Dr G S Tomlin

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St Mellitus College Trust

Statement of Corporate Governance and Internal Control

for the year ended 31 July 2021

The College’s framework of governance is established in its Memorandum and Articles of Association. The College is committed to best practice in all aspects of corporate governance. It aims to conduct its business in accordance with the principles identified by the Committee on Standards in Public Life (Nolan Committee) and the Higher Education Code of Governance issued by the Committee of College Chairs.

In adopting this Code of Governance, the College is satisfied that it complies with all the primary elements that are the hallmarks of effective governing bodies operating in the UK HE sector. The College maintains a register of interest of members of the Board of Trustees which is available for inspection.

Charitable Status

The College is a Registered Charity (No 1094157) and a Company Limited by Guarantee (No 4546328) and is regulated by the Office for Students (OfS). The College received notification of its successful application for registration with the OfS in March 2019. For the purposes of Company Law, the Trustees are the Company’s Directors. The charitable purposes of the College as defined in the Memorandum of Association are:

The Board of Trustees

The Board of Trustees oversees the activities of the College and determines its strategic direction. The specific powers of the Board are set out in the Memorandum and Articles.

The Board has a duty to enable the College to develop its vision and strategy and to achieve success in achieving its objectives. In doing this, it always seeks to safeguard and protect the reputation of the College.

The Board has a formal function to hold the Dean to account for the effective management of the College. The Board is a steering body and fundamentally serves to add value to the College’s affairs, by offering independent, expert input to and constructive challenge of the decisions of the College management.

The Board has formal decision-making responsibility in a number of key areas, including the approval of the College’s Strategy and other major strategic policies which sit underneath this or for which it has a legal responsibility to oversee. Other major tasks crucial to the success and sustainability of the College are the appointment and performance management of the Dean and other senior post holders, adoption of its annual Financial Statements, budgets, financial forecasts and the appointment of the College’s external auditors.

The Board is responsible for approving annual returns to the Office for Students as required.

The Board of Trustees comprises members from outside the College as laid out in the Articles of Association which also defines the chairing arrangements.

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Conduct of business

The Board has a minimum of three meetings per year. The formal Board meetings are supplemented by informal briefing sessions on relevant issues, and attendance at key College events. This helps to ensure that Trustees are part of the wider community of the College and that they are fully briefed on the activities of and challenges and opportunities facing the College.

There is a clear division of responsibility in that the role of Chair of the Board of Trustees is separated from the role of the College’s Dean.

The Board has a number of standing committees to help it discharge its business effectively:

Audit and Risk Committee

The Audit and Risk Committee meets with the College’s external and internal auditors in attendance. The Committee considers detailed reports together with recommendations for the improvement of the College’s systems of internal control and management’s responses and implementation plans.

It also receives and considers reports from the Office for Students as they affect the College’s business and monitors adherence to the regulatory requirements. While senior executives attend meetings of the Audit and Risk Committee as necessary, they are not members of the Committee and the Committee meets annually with the Auditors on their own for independent discussions.

Management is responsible for the implementation of agreed audit recommendations and the internal auditor undertakes periodic follow up reviews to ensure such recommendations have been implemented.

The Audit and Risk Committee also advises the Board of Trustees on the appointment of internal and external auditors and the remuneration for both audit and non-audit work.

Remuneration Committee

The Remuneration Committee determines the salaries and conditions of service of the most senior staff, including the Dean and Assistant Deans. The Remuneration Committee follows Higher Education sector guidelines to ensure the process of awarding Dean and senior staff pay is transparent and practices are consistent with best practice. Details of remuneration for the year ended 31 July 2021 are set out in note 6 of the financial statements.

Nominations Committee

The Nominations Committee seeks to ensure diversity, breadth and continuity of expertise amongst the membership of the Board. It also undertakes succession planning with respect to the membership, leadership and committees and good practice in governance.

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Academic Committee

The Academic Committee offers strategic academic oversight through liaising with the senior staff that have responsibility for leadership of the academic life of the College. It seeks to maintain the high academic standards that St Mellitus College has set, as well as review and contribute to the strategic development and direction of the College in relation to academic matters and regulation.

Internal Control

The College’s Board of Trustees is responsible for ensuring that the College maintains an effective system of internal control that supports the achievement of strategic aims and objectives whilst safeguarding the assets for which it is responsible. Such a system is designed to manage rather than eliminate the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.

The system of internal control is based on an ongoing process designed to identify the principal risks to the achievement of policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically.

The Board of Trustees has delegated the day to day responsibility to the Dean, as Accountable Officer, for reviewing the adequacy of the system of internal control and making any appropriate amendments. He is also responsible for reporting to the Board of Trustees any material weaknesses or breakdowns in internal control.

The following processes are in place to ensure the effectiveness of the College’s internal control and risk management:

The Board of Trustees is of the view that there is an ongoing process for identifying, evaluating and managing the College’s significant risks.

These processes enable the College to identify those elements of internal control which require further strengthening and these reviews have not identified any significant area of internal control weakness for the College.

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Going Concern

After reviewing detailed papers, the Board of Trustees considered, at its meeting on 13 October 2021, that the College has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Statement of the responsibilities of the Board of Trustees

In accordance with the College’s Memorandum and Articles of Association, the Board of Trustees is responsible for the administration and management of the College’s affairs, including ensuring an effective system of internal control, and is required to present audited financial statements for each financial year.

The Board of Trustees is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the College, and to enable it to ensure that the financial statements are prepared in accordance with the College’s Articles, with Accounting and Reporting by Charities: 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 (FRS102) (effective 1st January 2015) – (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS102) and the Companies Act 2006.

In preparing the financial statements, the Board of Trustees has ensured that:

The Board of Trustees has taken reasonable steps to:

The key elements of the College’s system of internal financial control, which is designed to discharge the responsibilities set out above, include the following:

Approved by the Trustees on 24th February 2022 and signed on their behalf by

~~tae [awd~~

Chair: Rt Revd Dr G S Tomlin

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ST MELLITUS COLLEGE TRUST

Opinion

We have audited the financial statements of St Mellitus College Trust ("the charitable company") for the year ended 31 July 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard Applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

In our opinion:

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 have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence that 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.

16

Other information

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

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

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the trustees' annual 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 trustees

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

17

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 relating 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 it 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 agregate, they could be 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

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

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

Use of our report

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

M one Kine Cond. Lip James Cross (Senior Statutory Auditor)

for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Date: 24 February 2022

Devonshire House 60 Goswell Road London EC1M 7AD

19

St Mellitus College Trust

Statement of Financial Activities

including Income & Expenditure Account for the year ended 31 July 2021

-- Unrestricted Funds -- -- Unrestricted Funds --
General Designated Restricted Total Funds Total Funds
Fund Funds Funds 2021 2020
(Note 13) (Note 13) (Note 15)
Note £ £ £ £ £
INCOME 3
Donations & Grants 60,024 0 184,768 244,792 320,758
Charitable Activity income 2,520,981 1,100,126 0 3,621,107 3,345,037
Investment income 356 0 0 356 1044
Fund raising income 0 0 0 0 21,000
TOTAL INCOME 2,581,361 1,100,126 184,768 3,866,255 3,687,839
EXPENDITURE 4
Raising funds:
Fund raising costs 0 0 0 0 1,269
Expenditure on charitable activities:
Operation of college courses 2,148,779 750,317 232,546 3,131,642 3,321,162
Grants made 275,000 0 0 275,000 66,464
TOTAL EXPENDITURE 2,423,779 750,317 232,546 3,406,642 3,388,895
NET OPERATING INCOME 157,582 349,809 -47,778 459,613 298,944
Transfers between funds -87,817 106,905 -19,088 0 0
(Loss)/Gain on Pension
Deficit Liability 10,687 0 0 10,687 95,790
NET INCOME / (EXPENDITURE) and net movement
in funds for year 2 80,452 456,714 -66,866 470,300 394,734
RECONCILIATION OF FUNDS
Total funds brought
forward 14 387,344 71,066 79,968 538,378 143,644
TOTAL FUNDS CARRIED FORWARD
AT 31 JULY 2021 14 467,796 527,780 13,102 1,008,678 538,378

The statement of financial activities includes all gains and losses in the year. All income and expenditure derive 20from continuing activities.

St Mellitus College Trust

Balance Sheet

as at 31 July 2021

2021 2020
£ £ £ £
Note
FIXED ASSETS
Intangible assets 9 21,568 -
Tangible assets 8 15,142 14,549
CURRENT ASSETS
Debtors 10 91,811 129,047
Cash at bank and in hand 1,225,487 649,522
Short term loans
CREDITORS:amounts falling
due within one year		 11
12		 1,317,298
-268,886
-60,000		 778,569
-144,524
-
12
NET CURRENT ASSETS
CREDITORS:amounts falling due after
more than one year
- Long term loans		 988,412
-		 634,045
-60,000
NET ASSETS BEFORE PENSION DEFICIT LIABILITY
PENSION DEFICIT LIABILITY		 NET ASSETS BEFORE PENSION DEFICIT LIABILITY 1,025,122
-16,444		 588,594
-50,216
TOTAL NET ASSETS 1,008,678 538,378
RESTRICTED FUNDS
UNRESTRICTED FUNDS		 13
13		 1,012,020
13,102		 508,626
79,968
PENSION DEFICIT LIABILITY RESERVE 1,025,122
-16,444		 588,594
-50,216
TOTAL FUNDS 1,008,678 538,378

These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small entities.

Approved by the Trustees on 24th February 2022 and signed on their behalf by

( Kt, Dean (Accountable Officer): Rev R Winfield

Chair: Rt Revd Dr G S Tomlin Grthom on:

21

Company No: 4546328

St Mellitus College Trust

Cash Flow Statement

for the year ended 31 July 2021

2021
2021
£
£
606,794
-9,617
-21,568
356
356
575,965
A)
Movement in Pension Deficit recovery accrual
B)
C)
1 August
Non-cash
2020
Changes
£
£
649,522
-
-60,000
-
589,522
-
Total Net Funds
(Decrease)/ Increase in creditors
Net cash inflow from operating activities
Reconciliation of Net Cash Flow to Movements in Net Cash
Increase in cash in the year representing change in net cash
Net cash at 1 August 2020
At 31 July 2021
Analysis of Changes in Net Funds
Cash at bank and in hand
Debt due after more than 1 year
Investments and Servicing of Finance
Increase in Cash (Note B)
Operating surplus
Interest received
Depreciation charges
(Increase)/ Decrease in debtors
Reconciliation of Operating Surplus to Net Cash Inflow from
Operating Activities
Net cash inflow (outflow) from
Operating Activities (Note A)
Capital Expenditure
Payments to acquire tangible fixed assets
Returns on Investments and
Servicing of Finance
Interest received
Net cash inflow from Returns on
Payments to acquire intangible fixed assets		 2020
£
1,044
2021
£
470,300
-356
9,024
37,236
124,362
-33,772
606,794
2021
£
575,965
649,522
1,225,487
Cash
Flows
£
575,965
-
575,965		 2020
£
335,228
-14,931
-
1,044
321,341
2020
£
394,734
-1,044
6,871
-8,722
65,233
-121,844
335,228
2020
£
321,341
328,181
649,522
31 July
2021
£
1,225,487
-60,000
1,165,487

22

St Mellitus College Trust

Notes forming part of the Financial Statements for the year ended 31 July 2021

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

(a) Incorporation

The charity is incorporated in England and Wales.

(b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: 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 (FRS102) (effective 1st January 2015) – (Charities SORP (FRS102)) including Update Bulletin 2, the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS102) and the Companies Act 2006. Assets and liabilities are initially recognised at historic cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest pound.

(c) Preparation of the accounts on a going concern basis

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular, the trustees have considered the charity's forecasts and projections and have taken account of pressures on fee income in light of the impact of the COVID-19 pandemic. After making enquiries the trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operation for the forseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

(d) Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.

Restricted funds are subject to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

23

(e) Income recognition policies

Items of income are recognised and included in the accounts when all of the following criteria are met:

Course fees and other income received in advance are deferred until the criteria for income recognition are met.

(f) Expenditure and irrecoverable VAT

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.

Irrecoverable VAT is charged as a cost against the cost heading for which the expenditure was incurred.

(g) Intangible assets

Website development costs are capitalised at cost and amortised over expected useful life (3 years).

(h) Tangible fixed assets

Fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life, which in all cases is estimated at 3 years. Assets are capitalised where the purchase price exceeds £500 and it is considered that the item will have a useful life of 3 years or more. Items of equipment where it is considered that the useful life will be less than 3 years are written off to expenditure in the year of acquisition.

(i) Stock

Stock is stated at the lower of cost and net realisable value.

(j) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short term liquid investments with original maturities of three months or less.

(k) Financial instruments

The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instruments of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, where there is a legally enforcable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

24

With the exception of amounts due to and from HM Revenue & Customs, prepayments and deferred income, all other debtor and creditor balances are considered to be basic financial instruments under FRS 102, see notes 9 and 10 for the debtor and creditor notes.

(k) Pensions

The Charity participates in two pension schemes –

Scottish Widows Workplace Pension Scheme

This is a defined contribution scheme for all staff not enrolled in the Church of England scheme (below). Employer contributions are accounted for in the year to which they relate.

Church of England Funded Pension Scheme

The Charity participates in the Church of England Funded Pension Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the employer and other participating employers.

Each participating employer in the 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. This means that it is not possible to attribute the Scheme’s assets and liabilities to specific employers and that contributions are accounted for as if the Scheme were a defined contribution scheme. The pension costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficit contributions (see below).

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

Following the 31st December 2018 valuation, a recovery plan was put in place until 31st December 2022 and the deficit recovery contributions payable (as a percentage of pensionable stipends) are 11.9% for the period 1st January 2018 until 31st December 2020 and 7.1% for the period from 1st January 2021 until 31st December 2022.

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

25

Balance sheet liability as at 1st August
Deficit contributions paid
Interest cost (recognised in SoFA)
Remaining change to the balance sheet liability *
(recognised in SoFA)
Balance sheet liability as at 31st July		 2021
£
50,216
-24,085
1,000
-10,687
16,444		 2020
£
172,060
-29,054
3,000
-95,790
50,216

Information provided by the Church of England Pensions Board is based on a December year end and these rates have been used to calculate the liability as at the 31st July in each year. In the opinion of the Trustees the difference is unlikely to be material.

The legal structure of the scheme is that if another employer were to fail then the charity could become responsible for paying a share of that employer's pension liabilities.

(l) Judgments and key sources of estimation uncertainty

In the application of the charity's accounting policies, the Trustees are required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates.

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

The most significant estimates and assumptions which affect the carrying amount of assets and liabilities in the accounts relate to the pension deficit liability.

2. NET INCOME FOR THE YEAR

NET INCOME FOR THE YEAR
2021 2020
£ £
This is stated after charging:
Auditor’s remuneration (excluding VAT)
- Audit
- current year		 7,123 6,040
- prior year under accrued 1,085 552
- Operating lease payments made in year 2,100 0

26

  1. INCOME
Diocesan share of staff costs
Diocesan contributions
Other income
Investment income
Bank interest
Fundraising income
TOTAL INCOME
Income from donors
Donations & Grants
Office for Students grants
Gift Aid recovered
Income from charitable activities
Course fees		 General
Restricted
Total Funds
Fund
Funds
Fund
2021
£
£
£
£
18,184
0
108,372
126,556
38,840
0
76,396
115,236
3,000
0
0
3,000
60,024
0
184,768
244,792
2,472,722
1,100,126
0
3,572,848
35,208
0
0
35,208
12,000
0
0
12,000
1,051
0
0
1,051
2,520,981
1,100,126
0
3,621,107
356
0
0
356
0
0
0
0
2,581,361
1,100,126
184,768
3,866,255
-- Unrestricted Funds --
Designated

The comparative figures for the year ended 31st July 2020 were -

-- Unrestricted Funds --

Donations & Grants
Office for Students grants
Fundraising income
TOTAL INCOME
Income from donors
Gift Aid recovered
Income from charitable activities
Course fees
Diocesan share of staff costs
Diocesan contributions
Other income
Investment income
Bank interest		 General
Restricted
Total Funds
Fund
Funds
Fund
2020
£
£
£
£
102,314
0
100,817
203,131
39,235
0
74,889
114,124
3,356
0
147
3,503
144,905
0
175,853
320,758
2,350,281
947,477
0
3,297,758
35,179
0
0
35,179
12,000
0
0
12,000
0
100
0
100
2,397,460
947,577
0
3,345,037
1044
0
0
1,044
21,000
0
0
21,000
2,564,409
947,577
175,853
3,687,839
Designated

27

4. EXPENDITURE

Basis of
Allocation
Staff Time
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Chapel
Direct
Direct
Direct
Direct
Equipment
Direct
Depreciation
Direct
Maintenance
Direct
Direct
Direct
Direct
Bank Charges and Interest
Other administrative costs
Fee from SPTC for Educational Services Direct
Total cost of College Operations
Fundraising costs
Grants made (see note 7)
Interest on Pension Deficit Recovery Plan
TOTAL EXPENDITURE
Printing, Stationery and Photocopying
Postage and Telephone
Travel, Training and staff meals
Recruitment and Relocation costs
Premises costs and rentals
University fees
Residential costs
Other Catering costs
Professional Charges
Costs of College Operations -
Staff costs (see Note 6)
Academic travel and training
Fieldwork and placements
Visiting Speakers' Fees & expenses
Library Books and supplies		 Total
2021
£
1,000,968
1,779
-94
7,793
18,877
895
9,878
4,479
3,493
62,532
0
29,970
4,183
5,113
6,831
9,024
0
18,739
1,170
78,730
1,866,283
3,130,642
0
275,000
1,000
3,406,642		 Total
2020
£
932,446
8,022
510
17,216
11,564
2,593
2,334
49,994
5,866
87,529
760
31,898
225,642
47,372
4,404
6,871
2,411
10,363
834
67,594
1,801,937
3,318,161
1,270
66,464
3,000
3,388,895

5. TAXATION

The charitable company is exempt from corporation tax on its activities.

6. STAFF COSTS AND NUMBERS

Healthcare costs
Salary contributions
Salaries and wages - academic staff
Salaries and wages - administrative
Social security costs
Pension costs
Housing costs (incl. allowances)
Other grants and allowances		 General
Restricted
2021
Fund
Funds
Funds
Total
£
£
£
£
153,367
262,440
41,873
457,680
127,733
110,057
0
237,790
31,128
35,868
0
66,996
33,936
54,984
0
88,920
12,219
58,133
0
70,352
4,803
9,619
3000
17,422
273
339
0
612
-177,073
111,222
127,047
61,196
186,386
642,662
171,920
1,000,968
Designated

28

The comparative figures for the year ended 31st July 2020 were -

Salaries and wages - academic staff
Salaries and wages - administrative
Social security costs
Pension costs
Housing costs (including allowances)
Other grants and allowances
Salary contributions		 General
Restricted
2020
Fund
Funds
Funds
Total
£
£
£
£
151,290
243,213
57595
452,098
153,458
93,937
0
247,395
32,413
30,048
0
62,461
24,206
60,540
0
84,746
12,138
52,236
0
64,374
5,316
9,094
0
14,410
-140,965
92,421
55,506
6,962
237,856
581,489
113,101
932,446
Designated

No employee received emoluments of more than £60,000.

Key management personnel are remunerated in accordance with London diocesan payscales. Some of these costs are shared with St Paul's Theological Centre. See also note regarding the Head of Provider's pay below.

The average monthly head count was 31.5 staff (2020: 32) and the average monthly number of full time equivalent employees during the year was:

Tutors
Assistant Dean /Course Directors
Administration and support		 2021
No
3.0
13.5
9.4
25.9		 2020
No
4.0
11.5
9.0
24.5

No Trustee received any remuneration in their capacity as a trustee from the Charity.

No Trustee had any travelling or out of pocket expenses in the year ( 2020: FOUR - £717 ).

Head of Provider's remuneration

We are required to declare the remuneration of the Head of Provider (the college Dean). The Dean is not employed by the charity but is an employee of St Paul's Theological Centre. The following information has been provided to us by St Paul's Theological Centre -

The Dean is remunerated at the standard rate for an Archdeacon in the Diocese of London.

£
Annual salary
Employer's pension contributions
(standard rate for all CofE clergy)
Total remuneration		 38,063
10,062
48,125

In common with all stipendiary clergy of the Church of England, the Dean is also provided with housing.

The salary (excluding pension contributions) represents a multiple of 1.4 of the average salary for the charity as a whole.

29

7. RELATED PARTY TRANSACTIONS

As stated in the Trustees' Report all Trustees represent other legal bodies within the wider church and could thus be regarded as related parties. Financial transactions with these bodies were as follows -

The Archbishops' Council - funding received of £25,402 (2020: £34,878)

The Archbishops' Council - outstanding net debtor £19,503 (2020: £16,468) London Diocesan Fund - funding received of £833,915 (2020: £660,908) London Diocesan Fund – outstanding debtor NIL (2020: NIL) Chelmsford Diocesan Board of Finance - funding received of £336,504 (2020: £309,551) Chelmsford Diocesan Board of Finance – outstanding debtor £5,950 (2020: £15,420) St Paul's Theological Centre - recharge of expenses incurred on their behalf.

St Paul's Theological Centre – donation towards costs at St Jude’s - £31,150 (2020: £30,550) St Paul’s Theological Centre – fee for educational services £1,866,283 (2020: £1,801,937) St Paul’s Theological Centre – year end creditor £99,760 (2020: £2,286)

St Paul’s Theological Centre – grant towards general costs - £50,000 (2020: NIL) * Church Renewal Trust - grant towards cost of spire repairs at St Jude's - £225,000 (2020 NIL) * There were no other Related Party Transactions that require disclosure during the period.

8. TANGIBLE FIXED ASSETS

Cost
At 1st August 2020
Additions
Disposals
At 31st July 2021
Accumulated Depreciation
At 1st August 2020
Charge for the year
Disposals
At 31st July 2021
Net Book Value
At 31st July 2021
At 31st July 2020		 Office
Equipment
£
4,800
1,467
0
6,267
1,066
2,007
0
3,073
3,194
3,734		 Office
Furniture
£
16,953
1,822
-2,717
16,058
11,521
3,153
-2,717
11,957
4,101
5,432		 Computer
Equipment
£
12,513
6,328
-3,335
15,506
7,130
3,864
-3,335
7,659
7,847
5383		 Total
£
34,266
9,617
-6,052
37,831
19,717
9,024
-6,052
22,689
15,142
14,549

30

  1. INTANGIBLE FIXED ASSETS
Website
Development
£
Cost
At 1st August 2020
0
Additions
21,568
At 31st July 2021
21,568
Accumulated Amortisation
At 1st August 2020
0
Charge for the year
0
At 31st July 2021
0
Net Book Value
At 31st July 2021
21,568
At 31st July 2020
0
10.
DEBTORS
11.
Other debtors and prepayments
CREDITORS: Amounts falling due within one year
Sundry creditors and accruals		 2021
£
91,811
91,811
2021
£
268,886
268,886		 2020
£
129,047
129,047
2020
£
144,524
144,524

Included in the above are accruals of £5,963 relating to pensions (2020: £5,868).

12. CREDITORS: Loans

At the year end there were two interest free loans totalling £60,000 (2020: £60,000) provided to cover the negative cash flow on the start up of the South West centre. The period of these loans is for a period of five years from July 2017. These loans are only repayable at the end of the five year period to the extent that the balance on the Designated Fund for the South West Centre is below the outstanding loan amount.

31

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

The comparative figures as at 31st July 2020 were -
Fixed Assets
Current assets
Current liabilities
Long term loans
Pension Deficit Liability
Net assets at 31 July 2020
Fixed Assets
Current assets
Current liabilities
Long term loans
Pension Deficit Liability
Net assets at 31 July 2021		 Funds
£
36,710
1,304,196
-268,886
-60,000
-16,444
995,576
14,549
698,601
-144,524
-60,000
-50,216
458,410
Unrestricted		 Restricted
Funds
£
0
13,102
0
0
0
13,102
0
79,968
0
0
0
79,968		 2021
Total
£
36,710
1,317,298
-268,886
-60,000
-16,444
1,008,678
14,549
778,569
-144,524
-60,000
-50,216
538,378

14. FUND DETAILS

DESIGNATED FUNDS

The Beginning Theology Fund records the operations of the Beginning Theology course.

The SMC North West Fund records the operations of the campus at Liverpool Cathedral.

The SMC South West Fund records the operations of the campus at Plymouth.

The SMC East Midlands Fund records the start up costs of the new campus at Nottingham.

The Contingency Fund has set aside the surplus achieved in the current year as a result of savings due to the Covid-19 pandemic to cover future shortfalls in income also resulting from the consequences of the pandemic and other development opportunities.

RESTRICTED FUNDS

The Dean's Discretionary Fund is for grants or loans to students who are experiencing difficulty or hardship. Donations are received into the fund on an ad-hoc basis.

The McDonald Professor Fund is in respect of a donation received from the McDonald Agape Foundation to fund the post of McDonald Professor of Christian Theology.

The Durham Seedcorn Grant is a grant made by Durham University towards the costs of a project researching the training provision for Interim Ministers.

32

The Generous Orthodoxy Project is a grant from the McDonald Agape Foundation to fund a research project into the college's concept of Generous Orthodoxy. This project came to an end at the end of July 2021.

The Office for Students' Capital Grant is a grant for investment in physical infrastructure, so that it remains fit for purpose. This grant was spent on capital additions and the balance transferred to the General Fund.

The Office for Students' Disability Grant is a grant to support successful outcomes for disabled students.

The Office for Students' Improving Outcomes Grant is a grant to support undergraduate students who are deemed to be most at risk of withdrawing from their studies because of their qualifications and age profile, and who therefore require additional investment to ensure their retention and success.

The Office for Students' Student Hardship Fund was a special grant made by the OfS to help students suffering hardship as a result of the Covid-19 pandemic. Students were invited to apply for grants and the charity paid out the funds received to the students who were awarded a grant on behalf of the OfS.

The McDonald Fellowship Fund is in respect of a donation received from the McDonald Agape Foundation to fund the post of McDonald Fellow.This post came to an end at the end of July 2021.

The analysis of the movements on these funds is as follows-

Designated Funds
Beginning Theology
SMC North West
SMC South West
SMC East Midlands
Contingency
Restricted Funds
Dean's Discretionary
McDonald Professor
Durham Seedcorn Grant
Generous Orthodoxy
OfS Capital Grant
OfS Disability Grant
Ofs Improving Outcomes
Ofs Student Hardship
McDonald Fellowship		 Opening
Balance
£
-4,783
143,200
-58,401
-8,950
0
71,066
9,400
14,716
571
55,281
0
0
0
0
0
79,968		 Income
£
22,075
519,001
200,170
358,881
1,100,127
871
35,000
0
22,500
19,088
6,510
43,548
7,250
50,000
184,767		 Expenditure
£
22,180
369,105
145,317
213,715
750,318
2,740
44,716
0
77,781
6,510
43,548
7,250
50,000
232,545		 Transfers
£
-293,095
400,000
106,905
-19,088
-19,088		 Closing
Balance
£
-4,888
0
-3,548
136,216
400,000
527,780
7,531
5,000
571
0
0
0
0
0
0
13,102

33

The comparative figures for the year ended 31st July 2020 were -

Designated Funds
Beginning Theology
SMC North West
SMC South West
SMC East Midlands
Restricted Funds
Dean's Discretionary
McDonald Professor
Durham Seedcorn Grant
Generous Orthodoxy
OfS Capital Grant
OfS Disability Grant
Ofs Improving Outcomes
McDonald Fellowship		 Opening
Balance
£
2286
61402
-59142
-17755
-13,209
11,292
0
-29
42,958
0
0
0
0
54,221		 Income
£
19,441
560,698
214,130
153,308
947,577
14
25,000
4,000
46,950
14,738
7,720
52,431
25,000
175,853		 Expenditure
£
26,510
478,900
213,389
144,503
863,302
1,906
10,284
3,400
34,627
7,720
52,431
25,000
135,368		 Transfers
£
0
-14,738
-14,738		 Closing
Balance
£
-4,783
143,200
-58,401
-8,950
71,066
9,400
14,716
571
55,281
0
0
0
0
79,968

Following the closure of the North West Centre at the end of July 2021, the balance on the SMC North West Designated Fund was transferred to the General Fund.

The SMC South West Designated Fund covers the operation of the delivery centre in Plymouth. The deficit of £3k represents the balance at the end of the fourth year of operation. The adverse cash flow in the start up phase is being covered by a loan facility and guarantee over five years of up to a maximum of £60k spread between the dioceses of Exeter and Truro.

The SMC East Midlands Designated Fund covers the operation of the delivery centre in Nottingham. The surplus of £136k represents the balance at the end of the second year of operation. The adverse cash flow in the start up phase is being covered by a loan facility and guarantee over five years of up to a maximum of £90k spread between the dioceses of Derby, Leicester and Southwell & Nottingham. The loan has not currently been drawn down.

15. LEASE COMMITMENTS

Total future mininum lease payments under non-cancellable operating leases are as follows:

Within 1 year
2 - 5 years
More than 5 years		 2021
£
25557
2903
0
28460		 2020
£
0
0
0
0

34

  1. SoFA COMPARATIVE FIGURES

The comparative figures for the Statement of Financial Activities for the year ended 31st July 2020 are as follows-

-- Unrestricted Funds -- -- Unrestricted Funds --
General Designated Restricted Total Funds
Fund Funds Funds 2020
£ £ £ £
INCOME
Donations & Grants 144,905 0 175,853 320,758
Charitable Activity income 2,397,460 947,577 0 3,345,037
Investment income 1,044 0 0 1,044
Fund raising income 21,000 0 0 21,000
TOTAL INCOME 2,564,409 947,577 175,853 3,687,839
1,269
Expenditure on charitable activities:
2,322,492
Grants made
66,464
EXPENDITURE
Raising funds:
Fund raising costs
Operation of college courses		 0
863,302
0		 0
135,368
0		 1,269
3,321,162
66,464
TOTAL EXPENDITURE 2,390,225 863,302 135,368 3,388,895
Transfers between funds
NET OPERATING
INCOME / (EXPENDITURE)
Liability
Gain on Pension Deficit		 174,184
14,738
95,790		 84,275
0		 40,485
-14,738
0		 298,944
0
95,790
NET INCOME / (EXPENDITURE)
movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward		 284,712
102,632
and net		 84,275
-13,209		 25,747
54,221		 394,734
143,644
387,344
AT 31 JULY 2020
TOTAL FUNDS CARRIED FORWARD		 71,066 79,968 538,378

35