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2023-07-31-accounts

St Mellitus College Trust

Annual Report & Financial Statements

Year Ended 31 July 2023

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 10
Independent Auditor's Report 14
Statement of Financial Activities 18
Balance Sheet 19
Cash Flow Statement 20
Notes forming part of the financial statements 21

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St Mellitus College Trust

(A company limited by guarantee)

Report of the Trustees

for the year ended 31st July 2023

The Trustees are pleased to present their annual report together with the financial statements of the charity for the year ended 31st July 2023 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.

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 programme which are mostly driven by word of mouth recommendations from existing students. Although student numbers in the year under review have shown a 16% decline compared to the previous year, this is mainly due to the reduced number of ordinands being sent by the Church of England for training. We do not consider this to be a decline in the attractiveness of our programmes as can be evidenced by the outcomes of the National Student Survey (see below).

We also have extensive student feedback processes and since the academic year 2016/17 have been participating in the National Student Survey. We were subject to regular scrutiny by the Quality Assurance Agency for Higher Education and now by the Office for Students 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, Truro, Exeter, Southwell & Nottingham, Leicester, 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 wish to note their thanks to all such volunteers.

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ACHIEVEMENTS AND PERFORMANCE

The following matters of achievement and performance are noted as follows -

The Course is run on a part-time basis usually over two or 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 promote 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 the Church of England's discernment process. The College provides training, study and pastoral support.

The College has continued to develop the Caleb Stream - a one year discernment pathway towards Church of England ordination for mature lay Christians with leadership experience. With often one priest assigned to serve multiple parishes, particularly in rural areas. this stream aims to train and mobilise a generation to serve in parishes across the UK. In the year under review this pathway was extended to our East Midlands delivery centre with a total of 27 students across the College compared to 10 students in the previous (first) year.

Our delivery centre in Plymouth which 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 25 students (2021/22: 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.

Our East Midlands delivery centre based in both Nottingham and Leicester has now become established as a key part of the college. There were a total of 63 students (2021/22: 61).

In all this year, including SPTC students, the College had 234 ordinands (2021/22: 282) in training and delivered accredited courses to more than 120 other students.

Following the completion of both the June and November exam boards, the class of 2023 included 146 students who graduated with undergraduate awards validated by one of our two partner universities, with one being a first class award. In addition, 43 students graduated with postgraduate awards, with 6 of these being awarded distinctions.

The 'Beginning Theology' course continues to attract students, now being offered as both in-person and online offerings. In the Summer Term of 2023 there were 34 ( 2022: 22 ) students enrolled plus a number of 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. As described in the Future Plans section this course has undergone a major relaunch in September 2023.

All of our academic programmes are now 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 had been validated by Middlesex University. However in November 2021 we notified Middlesex University of our intention to withdraw from our Validation Agreement with them and the final students under these programmes graduated in July 2023. This means that, going forward, all our programmes are now validated by Durham University and, as shown in the Future Plans section, now include a Youth Ministry offering.

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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. The first student on this programme enrolled in September 2023.

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.

The College continued to engage with the National Student Survey during 2023, with student response rates being above the national average. The Overall Satisfaction score is no longer applicable to HE institutions in England so there is no data for that from this year going forward. The College scored above the national average in all areas of the survey (between 4-12% above), and the areas where scoring was below the national average related to sub-sets of the student survey which staff at the College are aware of and continue to address, namely in the areas of assessment feedback and learning resources. Results on assessment feedback were only 0.13 below the national average, and the College awaits scoring in 2024 NSS after the introduction of the new Discovery learning resources platform.

The Office for Students now holds oversight for assuring the quality of the College’s academic standards and provision. They have replaced the Quality Assurance Agency (QAA).

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

Excluding the Contingency Reserve, the movement on all other Unrestricted Funds results in a small surplus of £35,622. When the Contingency Fund release of £182,962 is included, Unrestricted Funds decreased by £147,340 and stood at £900,234 as at 31st July 2023. The remaining balance of £217,038 on the Contingency Fund is expected to be released during the coming year. Without this Contingency Reserve, total Unrestricted Funds would amount to £683,196.

The Designated Fund for the operation of St Mellitus, South West showed a deficit for the year of £54,646 (2022: £47,214) which is also the cumulative deficit on this fund as at 31st July 2023.

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The Designated Fund for St Mellitus, East Midlands shows a deficit of £6,141 (2022: £35,814) which means that the cumulative surplus on this fund as at 31st July 2023 is £94,262 (2022: £100,403). 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 14.

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 £2,801,617 (2022: £2,978,663), of which £1,963,519 (70%) 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.In addition interest is earned on a Business Reserve Account with NatWest where funds are swept from our main account.

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 £495,000 which compares with the current level of available unrestricted reserves of £900,234 (excluding fixed assets: £869,830). Included in these reserves are the Contingency Reserve (see above) of £217,038 being held to cover future losses resulting from the Covid-19 pandemic. Without this Contingency Reserve unrestricted reserves would be £683,196 compared to the target of £495,000. Given the current uncertainties, the Trustees are content with the current level of reserves.

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. In addition to continuing the existing programmes, the following developments are worthy of note -

The number of ordinands being sent to us for training by the Church of England significantly declined, compared to previous years, in both the September 2022 and 2023 entries and is running significantly below the church's future target numbers. In 2022 this was thought to be a consequence of the introduction of a new selection process, which encountered some teething problems, and a post-Covid lag. It now appears that the numbers of people offering themselves for ordination is currently significantly below previous numbers. In the autumn of 2023 the Archbishops' Council entered into Service Level Agreements with all Theologial Education Institutions in the sector, including ourselves. This SLA, in addition to outlining expectations for training on both sides, seeks to provide some stability for the sector by agreeing to fee supplement payments to maintain income at or above the levels before the decline occurred. Whilst not currently calculated, this supplement is estimated to be in excess of £800,000 in 2023/24.

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Having decided to discontinue our dedicated Youth Ministry degree validated by Middlesex University, we launched a new youth focussed stream within our Durham University validated Theology, Mission and Ministry degree in September 2023. The initial cohort of students for this stream numbered seven students and we are hopeful that we can grow this number in future years.

The part time ordinand pathway based at St Mellitus, East Midlands in Leicester which was launched in September 2021 only had a potential of two ordinands starting in September 2024. It was therefore decided to pause this pathway for a year whilst a review of the future is conducted in consultation with the local dioceses.

The Peter Stream 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 the Church of England's discernment process. The College provides training, study and pastoral support. First launched in London in 2020, the scheme has been very sucessful in bringing to ordination a number of talented individuals who would not previously have passed the Church of England's selection processes. We are very pleased to have been granted funding by the Church of England's Innovation Fund to launch this scheme at St Mellitus College, East Midlands which we did in September 2023 with an initial cohort of nine students.

The Beginning Theology offering, which is an introductory course enabling access to theology, has been relaunched with a new provision in 2023/24, bringing together the existing Beginning Theology and School of Theology courses offered by SMC and SPTC to focus on one introductory offering. The new provision offers inperson teaching on Thursday evenings at the London Centre, and online teaching on Tuesday evenings. Each delivers three modules per year which can be taken as stand alone modules or students may sign up for a full year, with in-person and online offering different but complementary modules to increase the resource available. The redeveloped programme has had a strong re-launch, with over 350 students signing up for Term 1 modules in Autumn 2023 (153 online, 196 in-person), 90% of whom having not studied at St Mellitus College before.

We are also very pleased and thankful that the McDonald Agape Foundation have renewed their agreement for a further four years to continue to support Jane Williams as the McDonald Professor in Christian Theology and additionally to establish former Archbishop Rowan Williams as the McDonald Distinguished Emeritus Professor in Theology.

Launching in September 2023, the College has agreed to a pilot year of hosting a scriptorium at the London Centre, funded by the McDonald Agape Foundation, following a similar model already established at Pusey House in Oxford. Scriptorium is a place for postgraduate students to study within a structured framework of prayer, fellowship, and discussion.

2025 marks the 1700th anniversary of the Council of Nicea and we are extremely grateful that the McDonald Agape Foundation has agreed to fund a programme of events to mark this milestone.

During the last year the bishops of the dioceses of Truro and Exeter have conducted a review of theological training in their dioceses and we await the outcome of this review and its impact on our Plymouth delivery centre.

The College underwent its Periodic External Review (PER) as part of the Church of England’s quality assurance for its ministerial training institutions in October/November 2023. We have received an initial note indicating the report’s likely headlines, which is expected to be positive, with much to commend and the recommendations – of which, given the scale and complexity of the institution, there will likely be a fair number – are expected to be more developmental than remedial. We are awaiting the full report in January 2024.

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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, Arbor, 255 Blackfriars Rd, London SE1 9AX 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] The Reverend R Coates (Representative of St Paul's Theological Centre - also Member)

The Venerable C Burke Bishop of Chelmsford - from 16[th] January 2023 Mrs C Butcher St Paul’s Theological Centre - from 1[st] October 2023 The Reverend Dr S Prentis Joint - from 1[st] May 2023 Sir H Sants Bishop of London The Reverend Dr B Sargent General Synod Mrs R Stewart St Paul’s Theological Centre - to 30[th] April 2023 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 - to March 2023), 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.

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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 (“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 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.

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

The Dean (who is remunerated by St Paul’s Theological Centre) is remunerated as an Archdeacon in the Diocese of London; one Assistant Dean is remunerated according to the Archbishops’ Council of the Church of England’s published remuneration scale for ordained college staff (the “Lichfield Scale”) and 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 8 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 20[th] December 2023 and signed on their behalf by

~~hace~~ 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 2023

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.

The Committee reports to the Board on the adequacy and effectiveness of the College’s arrangements for:

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 2023 are set out in note 7 of the financial

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.

Going Concern

After reviewing detailed papers, the Board of Trustees considered, at its meeting on 20th December 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.

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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 20th December 2023 and signed on their behalf by

~~Chaco~~

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 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including 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.

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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 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.

15

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.

16

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:

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.

Adam Fullerton (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

9 Appold Street London EC2A 2AP

Date: 20 December 2023

17

St Mellitus College Trust

Statement of Financial Activities

including Income & Expenditure Account for the year ended 31 July 2023

-- Unrestricted Funds -- -- Unrestricted Funds --
General Designated Restricted Total Funds Total Funds
Fund Funds Funds 2023 2022
(Note 13) (Note 13) (Note 15)
Note £ £ £ £ £
INCOME 3
Donations & Grants 16,865 0 132,928 149,793 451,599
Charitable Activity income 2,150,519 692,657 0 2,843,176 3,025,378
Investment income 11,199 0 0 11,199 560
TOTAL INCOME 2,178,583 692,657 132,928 3,004,168 3,477,537
EXPENDITURE 5
Expenditure on charitable activities:
Operation of college courses 2,094,404 774,386 120,426 2,989,216 3,182,288
Grants made 0 164,512 0 164,512 250,000
TOTAL EXPENDITURE 2,094,404 938,898 120,426 3,153,728 3,432,288
NET OPERATING INCOME /
(EXPENDITURE) 84,179 -246,241 12,502 -149,560 45,249
Transfers between funds 14,722 0 -14,722 0 0
(Loss)/Gain on Pension
Deficit Liability 0 0 0 0 6,473
NET INCOME / (EXPENDITURE) and net movement
in funds for year 2 98,901 -246,241 -2,220 -149,560 51,722
RECONCILIATION OF FUNDS
Total funds brought
forward 15 558,009 489,565 12,826 1,060,400 1,008,678
TOTAL FUNDS CARRIED FORWARD
AT 31 JULY 2023 15 656,910 243,324 10,606 910,840 1,060,400

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

18

St Mellitus College Trust

Balance Sheet

as at 31 July 2023

2023 2022
£ £ £ £
Note
FIXED ASSETS
Intangible assets 10 8,510 17,020
Tangible assets 9 21,894 16,869
CURRENT ASSETS
Debtors 11 139,112 108,243
Cash at bank and in hand 873,715 1,140,505
1,012,827 1,248,748
CREDITORS:amounts falling
due within one year 12 -132,391 -222,237
NET CURRENT ASSETS 880,436 1,026,511
TOTAL NET ASSETS 910,840 1,060,400
UNRESTRICTED FUNDS 15 900,234 1,047,574
RESTRICTED FUNDS 15 10,606 12,826
TOTAL FUNDS 910,840 1,060,400

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 20th December 2023 and signed on their behalf by

Chair: Rt Revd Dr G S Tomlin Company No: 4546328

Dean (Accountable Officer): Rev R Winfield

19

St Mellitus College Trust

Cash Flow Statement

for the year ended 31 July 2023

2023
2023
£
£
-261,249
-16,740
0
11,199
Loans repaid
0
11,199
-266,790
A)
Amortisation charges
Movement in Pension Deficit recovery accrual
B)
C)
1 August
Non-cash
2022
Changes
£
£
1,140,505
-
1,140,505
-
Financing Activities
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)
Investing Activities
Payments to acquire tangible fixed assets
Returns on Financing Activities
Interest received
Payments to acquire intangible fixed assets
Net cash inflow / (outflow) from
(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 2022
At 31 July 2023
Analysis of Changes in Net Funds
Cash at bank and in hand
Total Net Funds		 2022
£
560
-60,000
2023
£
-149,560
-11,199
11,715
8,510
-30,869
-89,846
0
-261,249
2023
£
-266,790
1,140,505
873,715
Cash
Flows
£
-266,790
-266,790		 2022
£
-8,513
-13,067
-3,962
-59,440
-84,982
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
31 July
2023
£
873,715
873,715

20

St Mellitus College Trust

Notes forming part of the Financial Statements for the year ended 31 July 2023

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. It is a Company Limited by Guarantee with the liability of members in the event of liquidation being £1 each.

(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. 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.

21

(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) 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.

(j) 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.

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.

22

(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.

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. The 2021 valuation revealed an overall surplus of £560m, based on assets of £2,720m and a funding target of £2,160m, 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) were 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. The Charity had made all required deficit recovery contributions by 31st July 2022.

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.

23

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
2023 2022
£ £
This is stated after charging:
Auditor’s remuneration (excluding VAT)
- Audit
- current year		 10,100 7,975
- prior year under accrued 2,925 850
- Operating lease payments made in year 4,748 27,115

3. 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
2023
£
£
£
£
14,365
0
67,336
81,701
0
0
65,592
65,592
2,500
0
0
2,500
-- Unrestricted Funds --
Designated
16,865
0
132,928
149,793
2,108,960
692,657
0
2,801,617
29,559
0
0
29,559
12,000
0
0
12,000
0
0
0
0
2,150,519
692,657
0
2,843,176
11,199
0
0
11,199
2,178,583
692,657
132,928
3,004,168

24

The comparative figures for the year ended 31st July 2022 were -

-- Unrestricted Funds --

General
Fund
£
24,843
0
2,500
27,343
2,310,117
34,715
12,000
0
2,356,832
560
2,384,735
4.
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
TOTAL INCOME
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
Ordinand fee income - fee supplement		 General
Fund
£
24,843
0
2,500		 Restricted
Total Funds
Funds
Fund
2022
£
£
£
62,729
296,496
384,068
0
65,031
65,031
0
0
2,500
Designated
27,343 62,729
361,527
451,599
2,310,117
34,715
12,000
0		 668,546
0
2,978,663
0
0
34,715
0
0
12,000
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
Total
Total
2023
2022
£
£
65,592
65,031
1,656,620
1,992,423
105,421
92,193
201,478
0
446,763
639,600
391,335
254,447
2,867,209
3,043,694

25

  1. 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
Costs of College Operations -
Staff costs (see Note 7)
Academic travel and training
Fieldwork and placements
Visiting Speakers' Fees & expenses
Library Books and supplies
Bank Charges and Interest
Other administrative costs
Fee from SPTC for Educational Services Direct
Total cost of College Operations
Grants made
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		 Total
Total
2023
2022
£
£
857,151
863,493
14,345
5,540
1,798
-252
14,189
13,676
11,254
10,376
2,023
2,603
2,067
2,670
38,423
33,722
1,680
6,414
102,750
90,285
69
2,665
11,692
17,733
168,789
205,940
58,165
59,444
3,938
7,575
11,715
11,340
8,510
8,510
0
500
17,928
18,164
1,751
2,005
59,293
64,897
1,601,687
1,754,987
2,989,216
3,182,288
164,512
250,000
3,153,728
3,432,288

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.

7. STAFF COSTS AND NUMBERS

Salaries and wages - academic staff
Salaries and wages - administrative
Social security costs
Pension costs
Housing costs (incl. allowances)
Other grants and allowances
Salary contributions
Temporary staff
Healthcare costs		 General
Restricted
2023
Fund
Funds
Funds
Total
£
£
£
£
93,617
260,146
0
353,763
134,458
87,100
0
221,558
24,440
41,013
0
65,453
26,544
47,916
0
74,460
22,389
55,649
0
78,038
3,491
7,489
0
10,980
1,009
1,221
0
2,230
2,193
270
0
2,463
-41,232
20,132
69,306
48,206
Designated
266,909
520,936
69,306
857,151

26

The comparative figures for the year ended 31st July 2022 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
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
519,795
40,844
863,493

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 24.2 staff (2022: 25.7) and the average monthly number of full time equivalent employees during the year was:

Tutors
Assistant Dean /Course Directors
Administration and support		 2023
2022
No
No
3.2
3.5
7.7
8.4
7.8
7.1
18.7
19.0

No Trustee received any remuneration in their capacity as a trustee from the Charity (2022: NIL) Four Trustees incurred travel expenses of £476 in the year ( 2022: 1 for £97 ).

Key Management Personnel

The key management personnel of the Charity constitute The Dean, the two Assistant Deans and the Chief Operating Officer, three of whom are employed by St Paul's Theological Centre (SPTC).

The total employee remuneration of the individual employed by the Charity (up to March 2023 and including pensions and employer's NIC contributions) was £36,184.

We are advised by SPTC that the total employee remuneration of the three members of management employed by the SPTC (including pensions and employer's NIC contributions) was £209,936.

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.

27

£
Annual salary
Employer's pension contributions
(standard rate for all CofE clergy)
Total remuneration		 39,471
7,940
47,411

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 1.36 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 £201,478 ( 2022: £13,924 )

The Archbishops' Council - outstanding net creditor £3,280 ( 2022: £2,198 debtor ) The Archbishops' Council - recharge of expenses incurred on their behalf. London Diocesan Fund - funding received of £769,799 ( 2022: £829,766 )

London Diocesan Fund – outstanding debtor £9,709 ( 2022: £5,070 creditor ) Chelmsford Diocesan Board of Finance - funding received of £213,394 ( 2022: £256,179 )

Chelmsford Diocesan Board of Finance – outstanding debtor £4,588 ( 2022: £17,458 ) St Paul's Theological Centre - recharge of expenses incurred on their behalf.

St Paul's Theological Centre – donation towards costs at St Jude’s - £31,925 ( 2022: £31,310 ) St Paul’s Theological Centre – fee for educational services £1,601,687 ( 2022: £1,754,787 ) St Paul’s Theological Centre – year end debtor £17,918 (2022: £6,972 creditor) St Paul’s Theological Centre – grant from Contingency Fund regarding fees £164,512 ( 2022: £NIL ) Church Renewal Trust - grant towards repairs of spire at St Jude's £NIL ( 2022: £250,000 ) Church Renewal Trust - funding received of £225,713 ( 2022: £112,650 ) There were no other Related Party Transactions that require disclosure during the period.

9. TANGIBLE FIXED ASSETS

Cost
At 1st August 2022
Additions
Disposals
At 31st July 2023
Accumulated Depreciation
At 1st August 2022
Charge for the year
Disposals
At 31st July 2023
Net Book Value
At 31st July 2023
At 31st July 2022		 Office
Equipment
£
11,025
11,364
0
22,389
5,877
4,528
0
10,405
11,984
5,148		 Office
Furniture
£
18,791
2,026
0
20,817
15,672
1,966
0
17,638
3,179
3,119		 Computer
Equipment
Total
£
£
21,082
50,898
3,350
16,740
0
0
24,432
67,638
12,480
34,029
5,221
11,715
0
0
17,701
45,744
6,731
21,894
8,602
16,869

28

10. INTANGIBLE FIXED ASSETS

Website
Development
£
Cost
At 1st August 2022 25,530
Additions 0
At 31st July 2023 25,530
Accumulated Amortisation
At 1st August 2022 8,510
Charge for the year 8,510
At 31st July 2023 17,020
Net Book Value
At 31st July 2023 8,510
At 31st July 2022 17,020
11. DEBTORS
2023 2022
£ £
Other debtors and prepayments 139,112 108,243
139,112 108,243
12. CREDITORS: Amounts falling due within one year
2023 2022
£ £
Sundry creditors and accruals 103,085 192,931
Deferred income 29,306 29,306
132,391 222,237
Included in the above are amounts of £22,682 relating to pensions (2022: £40,975).

13. ANALYSIS OF NET ASSETS BETWEEN FUNDS

The comparative figures as at 31st July 2022 were -
Fixed Assets
Current assets
Net assets at 31 July 2023
Current liabilities
Net assets at 31 July 2022
Current assets
Fixed Assets
Current liabilities		 Funds
£
30,404
1,002,221
-132,391
900,234
33,889
1,235,922
-222,237
1,047,574
Unrestricted		 Restricted
Funds
£
0
10,606
0
10,606
0
12,826
0
12,826		 2023
Total
£
30,404
1,012,827
-132,391
910,840
33,889
1,248,748
-222,237
1,060,400
29
  1. FUND DETAILS

DESIGNATED FUNDS

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

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 £54,646 which also constitutes the cumulative deficit of this centre. The adverse cash flow in the start up phase had been covered by a loan facility and guarantee over the five years to July 2022 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 was converted into grant income in July 2022 and the balance of £8,528 was 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 £6,141 which, together with the brought forward surplus of £100,403, gives a closing surplus balance of £94,262. 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 had set aside the surplus achieved in the year 2021/22, as a result of savings due to the Covid-19 pandemic, to cover future shortfalls in income resulting from the consequences of the pandemic and other factors. During the current year a total of £182,963 was released from this fund with the balance expected to be released in the year 2023/24. The current year's release included a grant to SPTC of £164,512 in respect of reduced student income.

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 was a grant made by Durham University towards the costs of a project researching the training provision for Interim Ministers.

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 purpose 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 resided.

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.

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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 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
Broadening Access
OfS Capital Grant
OfS Disability Grant
OfS Hardship Fund
Ofs Improving Outcomes		 Opening
Balance
£
-10,837
0
100,403
400,000
489,566
7,826
5,000
0
0
0
0
0
12,826		 Income
£
31,726
170,392
490,539
692,657
3,030
35,000
29,306
14,722
5,658
2,085
43,127
132,928		 Expenditure
£
34,218
240,413
499,755
164,512
938,898
250
40,000
29,306
5,658
2,085
43,127
120,426		 Transfers
£
15,375
3,075
-18,450
0
-14,722
-14,722		 Closing
Balance
£
-13,329
-54,646
94,262
217,038
243,325
10,606
0
0
0
0
0
0
10,606

The comparative figures for the year ended 31st July 2022 were -

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
-17406
-17,406		 Closing
Balance
£
-10,837
0
100,403
400,000
489,566
7,826
5,000
0
0
0
0
0
0
12,826
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  1. 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		 2023
2022
£
£
2,680
2,680
223
223
0
0
2,903
2,903

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  1. SoFA COMPARATIVE FIGURES

The comparative figures for the Statement of Financial Activities for the year ended 31st July 2022 are as follows-

-- Unrestricted Funds --

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

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