OpenCharities

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

← St Mellitus College Trust

2022-07-31-accounts

ST MELLITUS COLLEGE St Mellitus College Trust Annual Report & Financial Statements Year Ended 31 July 2022 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 11
Independent Audit Report 16
Statement of Financial Activities 19
Balance Sheet 20
Cash Flow Statement 21
Notes forming part of the financial statements 22

0

St Mellitus College Trust

(A company limited by guarantee)

Report of the Trustees

for the year ended 31st July 2022

The Trustees are pleased to present their annual report together with the financial statements of the charity for 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.

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 projects.

We seek to achieve this vision by resourcing the mission of the church through theological learning and wisdom. open way that is responsive to a changing world. We believe that we should engage with theology in the context

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").

1

In seeking to measure success the charity primarily looks to the recruitment levels for its programme which are mostly driven by word of mouth recommendations from existing students. Although student numbers in the year under review are marginally (9%) down on the previous year, this is thought to be a consequence of the Covid pandemic rather than any other factor.

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

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.

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.

2

ACHIEVEMENTS AND PERFORMANCE

In the year under review there have been a number of 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. In addition there are a number of Licenced Lay Ministry candidates and independent students following this pathway. The students are normally 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 both 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.

Having run a pilot in the previous year, the College launched the Caleb Stream - 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. In this first year there were ten students following this programme.

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 (2020/21: 32) 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.

3

Our new delivery centre in Nottingham, which opened in September 2019, was in its third year during the period under review which means that it now has a full three cohorts of students. There were a total of 61 students (2020/21: 56) and the centre is rapidly establishing itself as a key part of the College. In addition a new satelite delivery centre in Leicester was opened in September 2021 to provide part time ordination training for three local dioceses. There were 7 students here in the first year.

St 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 (Church Renewal Trust - CRT), 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. In 2020/21 the Charity was able to make a grant to CRT of £225k as a result of savings made during the Covid-19 pandemic. During the year under review, the Charity received a grant of £250k from the Diocese of London, being part of the proceeds of a property which they sold. This grant was passed on to CRT so that part of the loan could be repaid. SPTC having made grants to CRT of £70k in each of the two preceeding years, the outstanding balance on the loan now stands at £85k.

In all this year, including SPTC students, the College had 282 ordinands (2020/21: 349 including 52 in the North West) 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 2022 included 177 students who graduated with undergraduate awards validated by one or other of our two partner universities with 2 being first class awards. In addition, 44 students graduated with postgraduate awards with 5 of these being awarded distinctions.

The 'Beginning Theology' course continues to thrive. In the Summer Term of 2021 there were 22 (2021: 25) students enrolled plus 16 Peter Stream students. 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. The course is now available as either an in-person option or alternatively on-line.

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 the MA in Christian Leadership are validated by Middlesex University. However in November 2021 we notified Middlesex University of our intention to withdraw from our Validation Agreement with them. We are now conducting a teach out programme for those students still registered on those programmes. This means that, going forward, all our programmes will be validated by Durham 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.

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.

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.

4

The College continued it's engagement with the National Student Survey during 2022. The Overall Student Satisfaction score increased to a remarkable 93.4%, and the College scored above the national average in 24 of the 26 questions. The results feed into our Teaching Excellence Framework metrics, along with our B3 Quality Benchmarks, and provide strong evidence for the high-quality student experience and outcomes the College is continues to provide.

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) are available 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 -

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 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

Despite the reduced student numbers (see above) the Charity has succeeded in achieving a small surplus of £28,119 on Unrestricted Funds before an additional gain of £6,473 on the Pension Deficit Liability. This means that Unrestricted Funds in total amount to £1,047,574 as at 31st July 2022. These Unrestricted Funds include a sum of £400,000 set aside last year in a Contingency Reserve which will be released over the next two years to cover reduced income resulting from reduced student numbers. Without this Contingency Reserve, total Unrestricted Funds would amount to £647,574. The surplus was enhanced by the write off of the loan regarding the Plymouth delivery centre - see comments below on St Mellitus, South West.

5

The Designated Fund for the operation of St Mellitus, South West showed a deficit for the year of £47,214 (2021: £54,853 surplus) before loans written off as a result of the guarantee from the local dioceses. When this centre was opened loans totalling £60,000 were given by the local Dioceses of Exeter and Truro to cover the negative cash flow in the start up phase. The loan agreement included a guarantee element to cover any cumulative deficit at the end of the initial five year period up to a maximum of £60,000. 31st July 2022 marked the end of that five year period and the cumulative deficit amounted to £51,472. This amount was written off the loan as covered by the guarantee and the balance of the loans is being returned to the dioceses. This means that this fund is in balance at 31st July 2022.

The Designated Fund for St Mellitus, East Midlands shows a deficit of £35,814 (2021: £145,166 surplus) for its third year of operation which means that the cumulative surplus on this fund as at 31st July 2022 is £100,403 (2021: £136,216). Any 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 15.

Pricing policy

Fees for Church of England ordinands are fixed for all approved theological education institutions by the Ministry institutions offering similar courses and also the Fee Cap imposed by the Office for Students.

Principal Funding Source

The main source of funding is student fees which this year amounted to £2,978,663 (2021: £3,572,848), of which £2,020,146 (67%) came from the 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 expenditure. Based on current projections it is estimated that one expenditure would be in the region of £445,000 which compares with the current level of available unrestricted reserves of £1,047,574 (excluding fixed assets: £1,013,685). 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 £647,574 compared to the target of £475,000.

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 showed a deficit of £16,444 at 31st July 2021. During the year under review the results of the December 2021 scheme revaluation were published which show that the scheme is now in surplus. Consequently we have been able to release this provision.

6

PLANS FOR FUTURE PERIODS

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

Having experienced a significant decline in student recruitment in September 2021, principally as a consequence of the Covid-19 pandemic, we were disappointed to experience a further decline in September 2022. The greatest decline was in the number of ordinands recruited and this is explained by a change in the selection procedure of the Church of England which did not operate as planned. The Church of England have acknowledged this problem and will be paying the College significant compensation in 2022/23. There was also a decline in independent students, partly explained by us not offering the Youth Ministry programme this year. The College is seeking to address this for the future with the creation of a number of marketing videos and other recruitment promotions. Despite this decline, the College has managed to prepare a balanced budget for 2022/23 which uses part of the Contingency Reserve which was created in 2020/21. Current projections indicate that a further draw down of Contingency Reserve funds will be required in 2023/24.

The Caleb Stream, which was launched in 2021/22, has proved to be a popular offering with 27 students signing up for this in September 2022. We are now offering it at St Mellitus, East Midlands as well as in London. We plan to continue to develop this stream.

The new part time ordinand pathway based at St Mellitus, East Midlands in Leicester is using a new hybrid model of delivery (both in-person and on-line) using experiences gained during the Covid-19 pandemic. We are exploring how this model might be used in other locations.

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

Advisers Auditors: Moore Kingston Smith LLP, 9 Appold Street, London, EC2A 2AP 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

7

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] The Reverend N Gumbel (Representative of St Paul's Theological Centre - also Member) - retired 31[st] July 2022 Mr J Ball Bishop of Chelmsford - resigned 24[th] February The Reverend R Coates Joint The Reverend A Eleyae Joint - resigned 11[th] October 2021 The Reverend Canon L Nsenga-Ngoy Joint - resigned 24[th] February 2022 Sir H Sants Bishop of London The Reverend Dr B Sargent General Synod Mrs R Stewart 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 26[th] September 2002 and registered as a charity on 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 15[th] June 2019 further new Memorandum and Articles of Association were adopted incorpoporating new procedures for nominating and appointing trustees for the Charity.

Appointment of Trustees

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

8

Under the Articles of Association adopted on 15[th] 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.

Sir Hector Sants and Revd Benjamin Sargent retire by rotation and offer themselves for re-nomination.

Trustee Induction and Training

The Members and Senior Team 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

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 8 to the Financial Statements.

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.

9

STATEMENT OF DISCLOSURE TO AUDITORS In so far as the trustees are aware at the time of approving this trustees, annual report.. there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the auditor is unaware, and the trustees, having made enquiries of fellow directors and the auditor that they ought to have individually taken, have each taken all steps that he/she is obliged to take as a director in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 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 4, January 2023 and signed on their behalf by Chair- Rt kevd Dr G S Tomlin io

St Mellitus College Trust

Statement of Corporate Governance and Internal Control for the year ended 31 July 2022

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 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 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 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

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.

11

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

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

Audit and Risk Committee

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 2022 are set out in note 7 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.

12

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

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.

management:

The Board of Trustees is of the view that there is an ongoing process for identifying, evaluating and managing the

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.

13

Going Concern After reviewing detailed papers. the Board of Trustees considered, at its meeting on 4 January 2023, 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 15 responsible for keeping proper accounting records, which disclose with reasonable accuracy ot 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 IFR51021 leffective 1st January 20151- Icharities SORP IFR510211, the Financial Reporting Standard applicable in the UK and the Republic of Ireland IFRS1021 and the Companies Act 2006. In preparing the financial statements. the Board of Trustees has ensured that.. Suitable accounting policies are selected and applied consistentlv Judgements and estimates are made that are reasonable and prudent Applicable accounting standards have been followed,. and Financial statements are prepared on the going concern basis unless it is inappropriate to presume that the Institution will continue in operation. The Board of Trustees is satisfied that it has adequate resources to continue in operation for the foreseeable future and for this reason the going concern basis continues to be adopted in the preparation of the financial statements. The Board of Trustees has taken reasonable steps to.. Safeguard the assets of the College, prevent and detect fraud, and ensure that risk management is in place Ensure that the Board of Trustees, report and other information included in the Financial Statements are prepared in accordance with relevant legislation in the UK Secure the economical, efficient and effective management of the College's resources and expenditure,. Ensure that the College operates an effective health and safety policy. 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.. Clear definitions of the responsibilities of, and the authority delegated to, senior officers of the College A comprehensive medium and short-term planning process, supplemented by detailed annual income, expenditure, capital and cash flow budgets Regular reviews of key performance indicators and business risks and quarterly reviews of financial results involving variance reporting and updates of forecast outturns Clearly defined and formalised requirements for approval and control of expenditure. with investment decisions involving capital or revenue expenditure being subject to formal detailed appraisal and review according to approval levels set by the Board of Trustees Approved by the Trustees on 4, January 2023 and signed on their behalf bv Chair- Rt Revd Dr G S Tomlin 14

Opinion

We have audited the financial statements of St Mellitus College Trust ("the charitable company") for the year ended 31 July 2022 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.

15

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

16

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.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement 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.

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

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.

17

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 Wlth both management and those charged with governance of the charitable company. Our approach was as follows= We obtained an understanding of the legal and regulatory requirements applicable to the company and corisidered that the most significant are the Companies Act 2006, the Charities Act 2011, UK financial reporting standards as issued by the Financial Reporting Council and UK taxation legislation. We obtained an understanding of how the charitable company complies Wlth these requirements bv discussions with management and those charged with governance. We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance. We inquired of management and those charged with governance as to any known instances of non- compliance or suspected non-compliance with laws and regulations. Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. 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. K, 4P￿ra￿L James Cross (Senior St tutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor 9 Appold Street London EC2A 2AP Date.. 6 January 2023 18

St Mellitus College Trust

Statement of Financial Activities

including Income & Expenditure Account for the year ended 31 July 2022

-- Unrestricted Funds -- -- Unrestricted Funds --
General Designated Restricted Total Funds Total Funds
Fund Funds Funds 2022 2021
(Note 13) (Note 13) (Note 15)
Note £ £ £ £ £
INCOME 3
Donations & Grants 27,343 62,729 361,527 451,599 244,792
Charitable Activity income 2,356,832 668,546 0 3,025,378 3,621,107
Investment income 560 0 0 560 356
TOTAL INCOME 2,384,735 731,275 361,527 3,477,537 3,866,255
EXPENDITURE 5
Raising funds:
Fund raising costs 0 0 0 0 0
Expenditure on charitable activities:
Operation of college courses 2,318,401 769,490 94,397 3,182,288 3,131,642
Grants made 0 0 250,000 250,000 275,000
TOTAL EXPENDITURE 2,318,401 769,490 344,397 3,432,288 3,406,642
NET OPERATING INCOME 66,334 -38,215 17,130 45,249 459,613
Transfers between funds 17,406 0 -17,406 0 0
(Loss)/Gain on Pension
Deficit Liability 6,473 0 0 6,473 10,687
NET INCOME / (EXPENDITURE) and net movement
in funds for year 2 90,213 -38,215 -276 51,722 470,300
RECONCILIATION OF FUNDS
Total funds brought
forward 15 467,796 527,780 13,102 1,008,678 538,378
TOTAL FUNDS CARRIED FORWARD
AT 31 JULY 2022 15 558,009 489,565 12,826 1,060,400 1,008,678

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

19

St Mellitus College Trust Balance Sheet as at 31 July 2022 2022 2021 Note FIXED ASSETS Intangible assets Tangible assets io 17,020 16,869 21,568 15.142 CURRENT ASSETS Debtors Cash at bank and in hand li 108,243 1,140,505 91.811 1,225,487 1,248,748 1,317,298 CREDITORS: amounts falling due within one year Short term loans 12 13 -222,237 -268,886 -60,000 NET CURRENT ASSETS 1,026,511 988,412 NET ASSETS BEFORE PENSION DEFICIT LIABILITY 1,060,400 1,025,122 PENSION DEFICIT LIABILITY -16,444 TOTAL NET ASSETS 1,060,400 1,008,678 UNRESTRICTED FUNDS RESTRICTED FUNDS 15 15 1,047,574 12,826 1,012,020 13,102 1,060,400 1,025,122 PENSION DEFICIT LIABILITY RESERVE -16,444 TOTAL FUNDS 1,060,400 1,008,678 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 4, January 2023 and signed on their behalf by Chair- Rt Kevd Dr G S Tomlin Company No.. 4546328 Dean (Ac ntable Officer).. Rev R Winfield 20

St Mellitus College Trust

Cash Flow Statement

for the year ended 31 July 2022

2022
2022
£
£
-8,513
-13,067
-3,962
560
Loans repaid
-60,000
-59,440
-84,982
A)
Amortisation charges
Movement in Pension Deficit recovery accrual
B)
C)
1 August
Non-cash
2021
Changes
£
£
1,225,487
-
-60,000
-
1,165,487
-
Total Net Funds
(Decrease)/ Increase in creditors
Net cash inflow / (outflow) from operating activities
Reconciliation of Net Cash Flow to Movements in Net Cash
Increase (decrease) in cash in the year representing change in net cash
Net cash at 1 August 2021
At 31 July 2022
Analysis of Changes in Net Funds
Cash at bank and in hand
Debt due after less than 1 year
Investments and Servicing of Finance
Increase (decrease) 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
Payments to acquire intangible fixed assets
Net cash inflow / (outflow) from Returns on		 2021
£
356
0
2022
£
51,722
-560
11,340
8,510
-16,432
-46,649
-16,444
-8,513
2022
£
-84,982
1,225,487
1,140,505
Cash
Flows
£
-84,982
60,000
-24,982		 2021
£
478,968
-9,617
-21,568
356
448,139
2021
£
470,300
-356
9,024
0
0
0
0
478,968
2021
£
575,965
649,522
1,225,487
31 July
2022
£
1,140,505
0
1,140,505

21

St Mellitus College Trust

Notes forming part of the Financial Statements

for the year ended 31 July 2022

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 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. 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.

22

(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.

23

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 11 and 12 for the debtor and creditor notes.

(k) Pensions

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 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 2021. As at the valuation date, the technical provisions were £2,160m and there was a surplus of £560m. On the gilts +0.5% low dependency measure that the Board monitors, the Scheme had a surplus of £60m. The 2021 valuation revealed an overall surplus of £560m, based on assets of £2,720m, assessed using the following assumptions-

24

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.

Following the 31st December 2021 valuation, there was a surplus of £560m. No recovery plan is

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 below.

movement in the provision is set out in the table below.
Balance sheet liability as at 1st August
Total employer contributions (including deficit contributions) to this
scheme were
Total number of staff in this scheme at 31st July
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		 2022
£
16,444
-9,971
-
-6,473
0
78,591
8		 2021
£
50,216
-24,085
1,000
-10,687
16,444
103,974
10

As detailed above, the scheme is currently in surplus. No deficit recovery contributions are payable and no Recovery Plan is required. Due to this, the charity no longer recognises a liability in the financial statements.

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.

25

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

2022 2021
£ £
This is stated after charging:
- Audit
 - current year 7,975 7,123
- prior year under accrued 850 1,085
- Operating lease payments made in year 27,115 2100

3.

INCOME

INCOME
Diocesan share of staff costs
Diocesan contributions
Other income
Investment income
Bank interest
TOTAL INCOME
Income from donors
Donations & Grants
Office for Students grants
Gift Aid recovered
Income from charitable activities
Course fees (see Note 4)		 General
Restricted
Total Funds
Fund
Funds
Fund
2022
£
£
£
£
24,843
62,729
296,496
384,068
0
0
65,031
65,031
2,500
0
0
2,500
-- Unrestricted Funds --
Designated
27,343
62,729
361,527
451,599
2,310,117
668,546
0
2,978,663
34,715
0
0
34,715
12,000
0
0
12,000
0
0
0
0
2,356,832
668,546
0
3,025,378
560
0
0
560
2,384,735
731,275
361,527
3,477,537

26

The comparative figures for the year ended 31st July 2021 were -

-- Unrestricted Funds --

-- Unrestricted Funds --
TOTAL INCOME
Income from donors
Gift Aid recovered
Income from charitable activities
Course fees (see Note 4)
Diocesan share of staff costs
Diocesan contributions
Other income
Investment income
Bank interest
Donations & Grants
Office for Students grants		 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
Designated
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
2,581,361
1,100,126
184,768
3,866,255

4. FEES & GRANTS ANALYSIS

FEES & GRANTS ANALYSIS
Office for Students grant income
Ordinand fee income - taught HE awards
Ordinand fee income - non-accredited students
Other fee income - taught HE awards
Other fee income - non-accredited & FE students
TOTAL FEE INCOME		 Total
2022
£
65,031
1,992,423
92,193
639,600
254,447
3,043,694		 Total
2021
£
115,236
2,103,198
74,937
940,950
453,764
3,688,085

27

  1. EXPENDITURE
EXPENDITURE
Basis of
Allocation
Staff Time
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Direct
Chapel
Direct
Direct
Direct
Direct
Equipment
Direct
Depreciation
Direct
Amortisation
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
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
2022
£
863,493
5,540
-252
13,676
10,376
2,603
2,670
33,722
6,414
90,285
2,665
17,733
205,940
59,444
7,575
11,340
8,510
500
18,164
2,005
64,897
1,754,987
3,182,288
0
250,000
0
3,432,288		 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
0
18,739
1,170
78,730
1,866,283
3,130,642
0
275,000
1,000
3,406,642

6. TAXATION

The charitable company is exempt from corporation tax on its income and gains to the extent that they are derived from charitable activities.

28

  1. 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
2022
Fund
Funds
Funds
Total
£
£
£
£
156,796
229,787
0
386,583
126,916
74,268
0
201,184
27,663
32,885
0
60,548
35,731
67,592
0
103,323
25,121
60,057
0
85,178
4,677
8,107
0
12,784
770
683
0
1,453
-74,821
46,417
40,844
12,440
Designated
302,853
519,796
40,844
863,493

The comparative figures for the year ended 31st July 2021 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
Healthcare costs		 General
Restricted
2021
Fund
Funds
Funds
Total
£
£
£
£
153,367
262,440
41873
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
Designated
186,386
642,662
171,920
1,000,968

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 25.7 staff (2021: 31.5) and the average monthly number of full time equivalent employees during the year was:

Tutors
Assistant Dean /Course Directors
Administration and support		 2022
2021
No
No
3.5
3.0
8.4
13.5
7.1
9.4
19.0
25.9

No Trustee received any remuneration in their capacity as a trustee from the Charity (2021: NIL) One Trustee incurred travel expenses of £97 in the year (2021: NIL ).

29

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		 38,317
9,504
47,821

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 1.2 of the average salary for the charity as a whole.

8. 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 £13,924 (2021: £25,402)

The Archbishops' Council - outstanding net debtor £2,198 (2021: £19,503)

London Diocesan Fund - funding received of £829,766 (2021: £833,915)

Chelmsford Diocesan Board of Finance - funding received of £256,179 (2021: £336,504)

St Paul's Theological Centre - recharge of expenses incurred on their behalf.

Church Renewal Trust - grant towards repairs of spire at St Jude's £150,000 (2021: £225,000) There were no other Related Party Transactions that require disclosure during the period.

9. TANGIBLE FIXED ASSETS

Cost
At 1st August 2021
Additions
Disposals
At 31st July 2022
Accumulated Depreciation
At 1st August 2021
Charge for the year
Disposals
At 31st July 2022
Net Book Value
At 31st July 2022
At 31st July 2021		 Office
Equipment
£
6,267
4,758
0
11,025
3,073
2,804
0
5,877
5,148
3,194		 Office
Furniture
£
16,058
2,733
0
18,791
11,957
3,715
0
15,672
3,119
4,101		 Computer
Equipment
Total
£
£
15,506
37,831
5,576
13,067
0
0
21,082
50,898
7,659
22,689
4,821
11,340
0
0
12,480
34,029
8,602
16,869
7847
15,142

30

10. INTANGIBLE FIXED ASSETS

10.
INTANGIBLE FIXED ASSETS
Website
Development
£
Cost
At 1st August 2021
21,568
Additions
3,962
At 31st July 2022
25,530
Accumulated Amortisation
At 1st August 2021
0
Charge for the year
8,510
At 31st July 2022
8,510
Net Book Value
At 31st July 2022
17,020
At 31st July 2021
21,568
11.
DEBTORS
12.
Other debtors and prepayments
CREDITORS: Amounts falling due within one year
Sundry creditors and accruals
Deferred income		 2022
£
108,243
108,243
2022
£
192,931
29,306
222,237		 2021
£
91,811
91,811
2021
£
268,886
0
268,886

Included in the above are amounts of £40,976 relating to pensions (2021: £5,963).

13. CREDITORS: Loans

In the prior year there were two interest free loans totalling £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. During the year under review both loans were repaid in full.

14. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Current liabilities
Net assets at 31 July 2022
Fixed Assets
Current assets		 Funds
£
33,889
1,235,922
-222,237
1,047,574
Unrestricted		 Restricted
2022
Funds
Total
£
£
0
33,889
12,826
1,248,748
0
-222,237
12,826
1,060,400

31

The comparative figures as at 31st July 2021 were -

Fixed Assets
Current liabilities
Long term loans
Pension Deficit Liability
Net assets at 31 July 2021
Current assets		 36,710
1,304,196
-268,886
-60,000
-16,444
995,576		 0
36,710
13,102
1,317,298
0
-268,886
0
-60,000
0
-16,444
13,102
1,008,678

15. FUND DETAILS

DESIGNATED FUNDS

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

The SMC North West Fund recorded the operations of the delivery centre based at Liverpool Cathedral. Following the closure of this centre at the end of July 2021, the balance on the fund was transferred to the General Fund.

The SMC South West Fund records the operation of the delivery centre in Plymouth. During the year under review, the centre had an operating deficit of £47,924 which together with a brought forward cumulative deficit of £3,548 made a cumulative deficit of £51,472 at the end of the initial five year period of the operation of this centre. The adverse cash flow in the start up phase had been 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. Under the guarantee element of this loan agreement, the cumulative deficit of £51,472 has been converted into grant income and the balance of £8,528 is being repaid to the dioceses.

The SMC East Midlands Fund records the operation of the delivery centres in Nottingham and Leicester. During the year under review, the centres had a deficit of £35,814 which, together with the brought forward balance of £136,216, gives a closing balance of £100,402. Any 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.

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. No funds were drawn down in the current year but it is expected that the fund will be utilised in the years 2022/23 and 2023/24.

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 Broadening Access to Theological Education Fund is in respect of a project to develop methods to broaden access to the training of church leaders in radical new ways, drawing in more people through our innovative and world leading model of context-based training.

The Spire Repair was a donation from the London Diocesan Fund, being part of the proceeds of a property which they had sold, the p+B1009urpose of which was to help pay off the outstanding loan from the repairs to the spire at St Jude's. The funds were onward granted to the Church Renewal Trust being the charity were the loan resides.

The Generous Orthodoxy Project was 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 was 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 South West
SMC East Midlands
Contingency
Restricted Funds
Dean's Discretionary
McDonald Professor
Durham Seedcorn Grant
Broadening Access
Spire Repair
OfS Capital Grant
OfS Disability Grant
Ofs Improving Outcomes		 Opening
Balance
£
-4,888
-3,548
136,216
400,000
527,780
7,531
5,000
571
0
0
0
0
0
13,102		 Income
£
24,350
242,854
464,071
731,275
2,635
35,000
3,000
5,861
250,000
17,406
6,746
40,879
361,527		 Expenditure
£
30,299
239,306
499,885
769,490
2,340
35,000
3,571
5,861
250,000
6,746
40,879
344,397		 Transfers
£
0
-17,406
-17,406		 Closing
Balance
£
-10,837
0
100,403
400,000
489,565
7,826
5,000
0
0
0
0
0
0
12,826

33

The comparative figures for the year ended 31st July 2021 were -

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

16. 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		 2022
£
2,680
223
0
2,903		 2021
£
25,557
2,903
0
28,460

34

  1. SoFA COMPARATIVE FIGURES

The comparative figures for the Statement of Financial Activities for the year ended 31st July 2021 are as follows-

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

35