# St Mellitus College Trust
# **Annual Report**
# **& Financial Statements**
## **Year Ended 31 July 2024**
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|
0
## **St Mellitus College Trust**
(A company limited by guarantee)
## **Report of the Trustees**
## for the year ended 31st July 2024
The trustees are pleased to present their annual report together with the financial statements of the charity for the year ended 31st July 2024 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:
- preparing for public ministry candidates selected by the Church of England and by other members of Churches Together in England;
- providing other theological and ministerial training and Christian education; and
- engaging with others in such theological and ministerial training and Christian education.
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 …
- **Worship** – theology is a spiritual not just an intellectual discipline, and so needs to be pursued in the context of a growing life of prayer and worship.
- **Unity** – we aim to provide space for all the mainstream traditions of the church, gathered around the presence of Christ in Word and Sacrament and held together by an expectation of the presence of the Holy Spirit.
- **Mission** – we want all our students to study their theology whilst they are engaged in active mission. We are committed to the task of preparing Christians theologically and spiritually for the growth of the church in mission.
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 (SPTC) which works closely together with the charity to offer courses and training under the banner of St Mellitus College ("the College").
1
- Historically the main activity of the charity has been the operation of the part time ordination training course (“the Course”), which is recognised by the Church of England to serve the Dioceses of London and Chelmsford, but the needs of individual students vary so the geographical boundaries are not rigidly applied. The operation of this Course constitutes the activity which is accounted for in the General Fund of the charity. Other activities are accounted for in separate Designated Funds.
- In addition the charity operates the Full Time courses delivered in Plymouth and Nottingham and also an entry level course under the title of 'Beginning Theology'.
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 21% 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 Achievements and Performance section 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 -
- the provision of public rituals and ceremonies;
- the cure of souls and the moral and spiritual improvement of the public;
- the provision of comfort to the bereaved; and
- contributing towards a better society, by promoting social cohesion and social capital.
## 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.
2
## **ACHIEVEMENTS AND PERFORMANCE**
The following matters of achievement and performance are noted as follows -
In all this year, including SPTC students, the College had 198 ordinands (2022/23: 234) in training and delivered accredited courses to 95 other students.
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 and runs in both our London and East Midlands centres. 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. This pathway is offered in our London and East Midlands centres with a total of 36 (2022/23: 27) students trained during the 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 26 students (2022/23: 25) in the year under review. Recruitment for this centre continues to be challenging, with more ordinands being on two year pathways, although we have seen some positive results from offering the option to audit Level 6 teaching on a modular basis as well as from launching the MA in Theology, Ministry and Mission in the South West centre from September 2024, offered in a hybrid format, with 7 students enrolled in its first year. This offering will be reviewed on an ongoing basis.
Our East Midlands delivery centre based in Nottingham trained a total of 60 students (2022/23: 63) during the year. Due to a lack of incoming students to create a viable sized teaching cohort, the Leicester arm of our East Midlands provision was closed after the 2022/23 year, with continuing students transferring to our Nottingham teaching centre.
Following the completion of the June 2024 exam board, 64 students graduated with undergraduate awards validated by our partner university, with two being first class awards on the BA. In addition, 4 students graduated with postgraduate awards, with 3 MA dissertations classed with a merit. It is predicted for the November 2024 exam board that around 20 undergraduate students will be recommended an award, and 16 students will be recommended a postgraduate award.
3
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 respectively to focus on one introductory offering. The new provision offers in-person 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 complimentary modules to increase the resource available. The redeveloped programme has had a strong re-launch, with 349 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. The attendees of the online Beginning Theology Programme has included students as part of a new discernment programme offered by Pentecostal Churches which has been an exciting new development for the college.
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.
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 Office for Students holds oversight for assuring the quality of the College’s academic standards and provision.
The College continued to engage with the National Student Survey during 2024, with student response rates being above the national average. The College scored above the national average in all areas of the survey (between 3-14% above), and the areas where scoring decreased slightly from the College’s 2023 results (between 0.08-6%) 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, management of student time and communication or perceptions from students about these things. With the introduction of the new Discovery learning resources platform our learning resources score rose from 76% to 87% - this is an area which the College has had lower scores in the past and this score is evidence that the improvements made have improved the student experience in this area. In addition our accredited students take part in the Common Awards Student Survey and the results of that are similar to those of the NSS, especially in the area of assessment feedback.
In the Autumn of 2023, the College underwent its Periodic External Review (PER) by the Ministry Development Team of the Church of England, in conjunction with the Common Awards team, which each TEI undertakes every 4-5 years. The review included scrutiny of documentation, site visits and meetings with staff, students, alumni and other stakeholders. In the resultant report published in March 2024, the college received an overall result of "Confidence" for its’ training of Ordinands (the highest possible result) and a separate overall result of "Confidence with Qualifications" for its training of LLMs (the middle result). This is a really positive result and indicates an improvement from the college's previous PER in 2017 which reported an overall result of "Confidence with Qualifications".
4
Launched in September 2023, the College delivered 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.
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 surplus of £87,756 (2023: £35,622). When the Contingency Fund release of £217,038 (2023:£182,962) is included, Unrestricted Funds decreased by £129,282 (2023: £147,340) and stood at £770,952 (2023: £900,234) at the year end.
The Designated Fund for the operation of St Mellitus, South West showed a deficit for the year of £49,800 (2023: £54,646), which means that the cumulative deficit on this fund at the year end is £104,446 (2023: £54,646).
The Designated Fund for the operation of St Mellitus, East Midlands showed a surplus of £23,565 (2023: £6,141 deficit) which means that the cumulative surplus on this fund at the year end is £117,827 (2023: £94,262).
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 £3,229,683 (2023: £2,801,617), of which £2,306,895 (71%) (2023: £1,963,519 - 70%) came from the Archbishops’ Council of the Church of England for the training of Church of England ordinands.
5
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 Bank.
## 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 £450,000 which compares with the current level of available unrestricted reserves of £770,953 (excluding fixed assets: £749,560). The Trustees are therefore 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 -
Nationally the total number of ordinands in training has decreased by 32% over the last five years. National CofE figures show that over the last 5 years (since 2019/20) the number of ordinands in training on full-time nonresidential pathways has decreased by 25.7% and the College has seen a corresponding decline in the number of ordinands being sent to us for training in line with that. The number training part time has decreased nationally by 26.9% compared to just 11.4% decline in SMC’s figures, which shows that SMC has increased its market share of part-time ordinands over the past 5 years. In the autumn of 2023 the Archbishops' Council entered into Service Level Agreements with all Theological 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. This supplement is estimated to be in excess of £700,000 in 2024/25.
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. During 23/24 we were successful in securing a funding bid from the Church of England's 30k project to support the delivery of Youth Ministry training, and the introduction of a new Children's Ministry offering. The 30k project also funded full diploma programme fees for up to 30 students studying on these pathways for September 2024 entry and we were able to fill all these places. We hope to explore securing further funding to repeat or build on this success in future years.
The part-time programme at the Chelmsford Teaching centre only had a potential of two or three ordinands starting in September 2024. It was therefore decided to suspend delivery of Level 4 teaching for one year to review provision in the centre to ensure viable and sustainable student cohorts with consideration to student experience and pedagogy, staff flourishing and financial sustainability.
We are grateful to the McDonald Agape Foundation who have agreed to fund a four year project to mark the importance of the Nicaea Creed for the 21st Century. 2025 is a significant anniversary year, celebrating 1700 years since the Council. The project will run from Autumn 2024 to Summer 2027 and will include public lectures from world-leading academics in the field as we ponder the meaning of Nicaea for the church and the academy, as well as a Creedal Spirit Conference in 2025, a Colloquium in 2027, and the writing and publication of books on the subject.
6
We are also grateful to the Archbishops' Council's Racial Justice Unit, who in November agreed to fund the college's proposed Project Metanoia, which will be running from December 2024 through August 2027. The funding will enable the college to continue prioritising racial justice at the heart of who we are and to be proactive in fostering change by targeting four areas - diversified training, key resourcing, intercultural placements and targeted recruitment.
## **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
St Mellitus College Trust
## 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
## Directors and Trustees
The directors of the charitable company (the charity) are its trustees for the purposes of charity 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 Mrs C Butcher St Paul’s Theological Centre - from 1[st] October 2023 The Reverend Canon A Eleyae Bishop of London - from 10[th] June 2024 Sir H Sants Bishop of London - to 10[th] June 2024 The Reverend Dr B Sargent General Synod The Right Reverend Dr G Tomlin (President) The Reverend Dr S Prentis Joint 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), the Academic Dean (Doctor Sara Schumacher) and the Chief Operating Officer (Mrs Tilly Bacon).
7
## **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 incorporating 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
All current senior staff are remunerated by St Paul’s Theological Centre. The Dean, who is ordained, is remunerated as an Archdeacon in the Diocese of London. All other executive staff are non-ordained; their remuneration is based on experience, responsibility and benchmarking against similar roles within SPTC's group and externally.
8
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.
## **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 19[th] December 2024 and signed on their behalf by
~~Cpanel~~ Chair: Rt Revd Dr G S Tomlin
9
## **St Mellitus College Trust**
## **Statement of Corporate Governance and Internal Control for the year ended 31 July 2024**
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:
- preparing for public ministry candidates selected by the Church of England and by other members of
- Churches Together in England;
- providing other theological and ministerial training and Christian education; and
- engaging with others in such theological and ministerial training and Christian education.
## **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.
10
## **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:
- r isk management, control and governance;
- f inancial reporting (i.e. the integrity of financial reporting arrangements, including the corporate
- governance statement and the statement of trustees' responsibilities as reported in the annual financial statements);
- e conomy, efficiency and effectiveness (value for money); and
- d ata quality.
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.
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 2024 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.
11
## **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 meets a minimum of three times a year to consider the plans and strategic direction
- of the College. It is advised by its key committees, receiving regular reports from each committee and other reports from management as required. The board of trustees ensures that its meeting calendar enables risk management and internal control to be considered on a regular basis during the year.
- The management team receives reports setting out key performance and risk indicators and considers
- possible control issues brought to their attention by early warning mechanisms which are embedded within the College’s operations.
- An organisation-wide risk register is maintained and is available on the College’s intranet. The register is
- reviewed and updated regularly, and management report on the actions taken to mitigate risks.
- Management accounts are presented regularly to the board of trustees and are regularly monitored by the
- Audit and Risk Committee. The annual budget and financial forecasts are also presented to the board of trustees.
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.
12
**Going Concern**
After reviewing detailed papers, the board of trustees considered, at its meeting on 19th December 2024, that the College has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
## **Statement of the Responsibilities of the Board of Trustees**
In accordance with the College’s Memorandum and Articles of Association, the board of trustees is responsible for the administration and management of the College’s affairs, including ensuring an effective system of internal control, and is required to present audited financial statements for each financial year.
The board of trustees is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the College, and to enable it to ensure that the financial statements are prepared in accordance with the College’s Articles, with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1st January 2015) – (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS102) and the Companies Act 2006.
In preparing the financial statements, the board of trustees has ensured that:
- s uitable accounting policies are selected and applied consistently;
- j udgements and estimates are made that are reasonable and prudent;
- a pplicable accounting standards have been followed; and
- f inancial 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:
- sa feguard the assets of the College, prevent and detect fraud, and ensure that risk management is in
- place;
- e nsure that the board of trustees’ report and other information included in the financial statements are
- prepared in accordance with relevant legislation in the UK;
- s ecure the economical, efficient and effective management of the College’s resources and expenditure;
- and
- e nsure 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:
- c lear 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;
- r egular reviews of key performance indicators and business risks and quarterly reviews of financial results
- involving variance reporting and updates of forecast outturns; and
- c learly 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 19th December 2024 and signed on their behalf by
Chair: Rt Revd Dr G S Tomlin (ite
13
**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 2024 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:
- give a true and fair view of the state of the charitable company’s affairs as at 31 July 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## In our opinion:
- funds from whatever source administered by the college for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislations;
- funds provided by the Office for Students (OfS) have been applied in accordance with the relevant terms and conditions; and
- the requirements of the OfS's Accounts Directions have been met.
## **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.
14
## **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:
- the information given in the Trustees 'Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees' annual report has been prepared in accordance with applicable legal requirements.
## **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:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees’ Annual Report and from preparing a Strategic Report.
## **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 aggregate, 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:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than one for one resulting from error, as fraud may include collusion, forgery, intentional omissions, misrepresentations or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charitable company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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:
- We obtained an understanding of the legal and regulatory requirements applicable to the company and considered 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 with these requirements by 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 noncompliance 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.
Adam Fullerton (Senior Statutory Auditor) 9 Appold Street for and on behalf of Moore Kingston Smith LLP, Statutory Auditor London EC2A 2AP
Date: 19 December 2024
17
## **St Mellitus College Trust**
## **Statement of Financial Activities**
## **including Income & Expenditure Account for the year ended 31 July 2024**
|||**-- Unrestricted Funds --**|**-- Unrestricted Funds --**||||
|---|---|---|---|---|---|---|
|||**General**|**Designated**|**Restricted**|**Total Funds**|**_Total Funds_**|
|||**Fund**|**Funds**|**Funds**|**2024**|**_2023_**|
||||(Note 13)|(Note 13)||(Note 15)|
||Note|£|£|£|£|_£_|
|**INCOME**|3||||||
|Donations & grants||23,111|0|280,826|303,937|_149,793_|
|Charitable activity income||2,679,938|810,462|0|3,490,400|_2,843,176_|
|Investment income||22,847|0|0|22,847|_11,199_|
|**TOTAL INCOME**||2,725,896|810,462|280,826|3,817,184|_3,004,168_|
|**EXPENDITURE**|5||||||
|_Expenditure on charitable activities:_|||||||
|Operation of college courses||2,501,628|794,298|237,049|3,532,975|_2,989,216_|
|Grants made||200,000|217,038|0|417,038|_164,512_|
|**TOTAL EXPENDITURE**||2,701,628|1,011,336|237,049|3,950,013|_3,153,728_|
|**NET OPERATING INCOME /**|||||||
|**EXPENDITURE**||24,268|-200,874|43,777|-132,829|_-149,560_|
|Transfers between funds||47,325|0|-47,325|0|_0_|
|**NET INCOME / EXPENDITURE**||**and net movement**|||||
|**in funds for year**|2|71,593|-200,874|-3,548|-132,829|_-149,560_|
|**RECONCILIATION OF FUNDS**|||||||
|Total funds brought|||||||
|forward|14|656,910|243,324|10,606|910,840|_1,060,400_|
|**TOTAL FUNDS CARRIED FORWARD**|||||||
|**AT 31 JULY 2024**|14|728,503|42,450|7,058|778,011|_910,840_|
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 2024**
||||**2024**||**_2023_**|
|---|---|---|---|---|---|
|||£|£|_£_|_£_|
||Note|||||
|**FIXED ASSETS**||||||
|Intangible assets|10||0||_8,510_|
|Tangible assets|9||21,393||_21,894_|
|**CURRENT ASSETS**||||||
|Debtors|11|177,184||_139,112_||
|Cash at bank and in hand||1,227,903||_873,715_||
|||1,405,087||_1,012,827_||
|**CREDITORS:**amounts falling||||||
|due within one year|12|-648,469||_-132,391_||
|**NET CURRENT ASSETS**|||756,618||_880,436_|
|**TOTAL NET ASSETS**|||778,011||_910,840_|
|**UNRESTRICTED FUNDS**|14||770,953||_900,234_|
|**RESTRICTED FUNDS**|14||7,058||_10,606_|
|**TOTAL FUNDS**|||778,011||_910,840_|
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 19th December 2024 and signed on their behalf by
Chair: Rt Revd Dr G S Tomlin Company No: 4546328
Dean (Accountable Officer): Revd R Winfield
19
## **St Mellitus College Trust**
## **Cash Flow Statement**
## **for the year ended 31 July 2024**
|**A)**
Amortisation charges
**B)**
**C)**
**1 August**
**Non-cash**
**2023**
**Changes**
**£**
**£**
873,715
-
873,715
-
Increase / decrease 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
At 31 July
**Analysis of Changes in Net Funds**
Cash at bank and in hand
Total Net Funds
**Increase / Decrease in Cash (Note B)**
Operating deficit
Interest received
Depreciation charges
Increase in debtors
**Reconciliation of Operating Deficit to Net Cash Inflow / Outflow**
**from Operating Activities**
**Net Cash Inflow / Outflow From**
**Operating Activities (Note A)**
**Investing Activities**
Payments to acquire tangible fixed assets
Interest received|**2024**
**£**
343,871
-12,530
22,847
354,188
**2024**
**£**
-132,829
-22,847
13,031
8,510
-38,072
516,078
343,871
**2024**
**£**
354,188
873,715
1,227,903
**Cash**
**Flows**
**£**
354,188
354,188|**_2023_**
**_£_**
_-261,249_
_-16,740_
_11,199_|
|---|---|---|
|||-266,790|
|||**_2023_**
**_£_**
_-149,560_
_-11,199_
_11,715_
_8,510_
_-30,869_
_-89,846_|
|||_-261,249_|
|||**_2023_**
**_£_**
_-266,790_
_1,140,505_|
|||_873,715_|
|||**31 July**
**2024**
**£**
1,227,903|
|||1,227,903|
20
## **St Mellitus College Trust**
## **Notes forming part of the Financial Statements for the year ended 31 July 2024**
## 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 foreseeable 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:
- the charity has entitlement to its funds;
- any performance conditions attached to the item(s) of income have been met or are fully within the control of the charity;
- it is probable that the income will be received; and
- the amount can be measured reliably.
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 enforceable 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 pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year. The 2021 valuation showed the Scheme to be fully funded and as such, deficit contributions are no longer required.
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:
- An average discount rate of 2.7% p.a.;
- RPI inflation of 3.6% p.a. (and pension increases consistent with this);
- CPIH inflation in line with RPI less 0.8% pre 2030 moving to RPI with no adjustment from 2030 onwards;
- Increase in pensionable stipends in line with CPIH;
- Mortality in accordance with 90% of the S3NA tables, with allowance for improvements in the
mortality rates in line with the CMI2020 extended model with a long term annual rate of improvement of 1.5%, a smoothing parameter of 7, an initial addition to mortality improvements of 0.5% p.a. and an allowance for 2020 data of 0% (i.e. w2020 = 0%).
Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the Scheme was fully funded.
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.
The legal structure of the scheme is such that if another Responsible Body fails, St Mellitus College Trust could become responsible for paying a share of that failed Responsible Body’s pension liabilities.
23
## (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 assumptions 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.
## 2. NET INCOME / EXPENDITURE FOR THE YEAR
||||**2024**|**2024**|**_2023_**|
|---|---|---|---|---|---|
|||||£|£|
|This is stated after charging:||||||
|Auditor’s remuneration (excluding VAT)||||||
|- Audit
- current year estimate|||10,555||_10,100_|
|- prior year under accrued|||2,525||_2,925_|
|- Operating lease payments made in year|||4,364||_4,748_|
|INCOME||||||
||**-- Unrestricted Funds --**|||||
||**General**|**Designated**|**Restricted**||**Total Funds**|
||**Fund**|**Funds**|**Fund**||**2024**|
||£|£|£||£|
|Income from donors||||||
|Donations & grants|21,514|0|228,603||250,117|
|Office for Students grants|0|0|52,223||52,223|
|Gift Aid recovered|1,597|0||0|1,597|
||23,111|0|280,826||303,937|
|Income from charitable activities||||||
|Course fees (see Note 4)|2,470,965|758,718||0|3,229,683|
|Diocesan share of staff costs|32,004|0||0|32,004|
|Diocesan contributions|12,000|0||0|12,000|
|Other income|164,969|51,744||0|216,713|
||2,679,938|810,462||0|3,490,400|
|Investment income||||||
|Bank interest|22,847|0||0|22,847|
|**TOTAL INCOME**|2,725,896|810,462|280,826||3,817,184|
## 3. INCOME
24
_The comparative figures for the year ended 31st July 2023 were -_
|**_General_**
**_Fund_**
**_Funds_**
_£_
_£_
_14,365_
_0_
_0_
_0_
_2,500_
_0_
_16,865_
_0_
_2,108,960_
_692,657_
_29,559_
_0_
_12,000_
_0_
_0_
_0_
_2,150,519_
_692,657_
_11,199_
_0_
_2,178,583_
_692,657_
4.
**_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
_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_
**_-- Unrestricted Funds --_**
**_Designated_**|**_General_**
**_Fund_**
**_Funds_**
_£_
_£_
_14,365_
_0_
_0_
_0_
_2,500_
_0_
**_-- Unrestricted Funds --_**
**_Designated_**|**_Restricted_**
**_Total Funds_**
**_Fund_**
**_2023_**
_£_
_£_
_67,336_
_81,701_
_65,592_
_65,592_
_0_
_2,500_|
|---|---|---|
||_16,865_
_0_|_132,928_
_149,793_|
||_2,108,960_
_692,657_
_29,559_
_0_
_12,000_
_0_
_0_
_0_|_0_
_2,801,617_
_0_
_29,559_
_0_
_12,000_
_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_|
|||**Total**
**_Total_**
**2024**
**_2023_**
£
_£_
52,223
_65,592_
1,576,664
_1,656,620_
65,271
_105,421_
664,960
_201,478_
395,330
_446,763_
527,458
_391,335_
3,281,906
_2,867,209_|
25
## 5. 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
Direct
Bank charges and interest
Other administrative costs
Fee from SPTC for Educational Services
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
**Costs of College Operations -**
Staff costs (see Note 7)
Academic travel and training
Fieldwork and placements
Visiting speakers' fees & expenses
Library books and supplies|**Total**
**_Total_**
**2024**
**_2023_**
£
_£_
960,592
_857,151_
76,490
_14,345_
62
_1,798_
13,693
_14,189_
11,675
_11,254_
1,748
_2,023_
2,922
_2,067_
45,200
_38,423_
0
_1,680_
100,769
_102,750_
172
_69_
10,766
_11,692_
135,159
_168,789_
55,831
_58,165_
3,011
_3,938_
13,031
_11,715_
8,510
_8,510_
16
_0_
20,672
_17,928_
2,757
_1,751_
70,276
_59,293_
1,999,623
_1,601,687_
3,532,975
_2,989,216_
417,038
_164,512_
3,950,013
_3,153,728_|
|---|---|
## 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.
26
7. STAFF COSTS AND NUMBERS
|Temporary staff
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**
**2024**
**Fund**
**Funds**
**Funds**
**Total**
£
£
£
£
106,472
297,764
0
404,237
151,495
50,483
0
201,979
25,949
41,520
0
67,469
19,495
44,534
0
64,029
25,889
53,851
0
79,740
2,205
8,492
0
10,697
585
721
0
1,306
773
0
0
774
-89,139
32,142
187,358
130,361
**Designated**|
|---|---|
||243,724
529,508
187,358
960,592|
_The comparative figures for the year ended 31st July 2023 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_
_Temporary staff_|**_General_**
**_Restricted_**
**_2023_**
**_Fund_**
**_Funds_**
**_Funds_**
**_Total_**
_£_
_£_
_£_
_£_
_93,617_
_260,146_
_0_
_353,765_
_134,457_
_87,099_
_0_
_221,556_
_24,440_
_41,013_
_0_
_65,453_
_26,544_
_47,916_
_0_
_74,460_
_22,389_
_55,649_
_0_
_78,037_
_3,491_
_7,489_
_0_
_10,981_
_1,009_
_1,221_
_0_
_2,231_
_2,193_
_270_
_0_
_2,464_
_-41,232_
_20,132_
_69,306_
_48,205_
**_Designated_**|
|---|---|
||_266,908_
_520,935_
_69,306_
_857,151_|
No employee received emoluments (excluding pension) of more than £60,000.
Key management personnel who are ordained, are remunerated in accordance with London diocesan pay scales. 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 23.2 staff _(2023: 24.2)_ and the average monthly number of full time equivalent employees during the year was:
|Tutors
Assistant Dean /Course Directors
Administration and support|**2024**
**_2023_**
No
_No_
2.0
_3.2_
9.1
_7.7_
6.9
_7.8_
18.0
_18.7_|
|---|---|
No trustee received any remuneration in their capacity as a trustee from the charity (2023: NIL) Three trustees incurred travel expenses of £393 in the year ( _2023: 4 trustees, £476_ ).
27
Key Management Personnel
The key management personnel of the Charity constitute The Dean, the Academic Dean and the Chief Operating Officer, all three of whom are employed by St Paul's Theological Centre (SPTC).
We are advised by SPTC that the total employee remuneration of the three members of management employed by SPTC (including pensions and employer's NI contributions) was £223,932 (2023: £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.
|Annual salary
Employer's pension contributions
(standard rate for all CofE clergy)
Total remuneration|£
41,108
6,996|
|---|---|
||48,104|
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 1.22 (2023: 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 £2,584,420 ( _2023: £201,478_ ) The Archbishops' Council - outstanding net debtor £49,623 ( _2023: £3,280 creditor_ ) The Archbishops' Council - recharge of expenses incurred on their behalf London Diocesan Fund - funding received of £20,991 ( _2023: £769,799_ ) London Diocesan Fund – outstanding debtor £NIL ( _2023: £9,709_ ) Chelmsford Diocesan Board of Finance - funding received of £46,213 ( _2023: £213,394_ ) Chelmsford Diocesan Board of Finance – outstanding debtor £NIL ( _2023: £4,588_ ) St Paul's Theological Centre - recharge of expenses incurred on their behalf
St Paul's Theological Centre – donation towards costs at St Jude’s - £33,446 ( _2023: £31,925_ ) St Paul’s Theological Centre – fee for educational services £1,999,623 ( _2023: £1,601,687_ ) St Paul’s Theological Centre – year end creditor £488,100 (2023: £17,918 debtor)
St Paul’s Theological Centre – grant from Contingency Fund regarding fees of £217,038 and a further donation of £200,000 out of this year's surplus ( _2023: £164,512, Contingency Fund release_ )
Holy Trinity Brompton - Beginning Theology fees and grant received £85,819 _(2023: £NIL)_ Revitalise Trust - student fees received of £353,110 ( _2023: £225,713_ )
There were no other Related Party Transactions that require disclosure during the period.
28
## 9. TANGIBLE FIXED ASSETS
|**Office**
**Office**
**Equipment**
**Furniture**
**£**
**£**
**_Cost_**
At 1st August 2023
22,389
20,817
Additions
3,511
2,103
Disposals
0
0
At 31st July 2024
25,900
22,920
**_Accumulated Depreciation_**
At 1st August 2023
10,405
17,638
Charge for the year
5,846
2,002
Disposals
0
0
At 31st July 2024
16,251
19,640
**_Net Book Value_**
At 31st July 2024
9,649
3,280
_At 31st July 2023_
_11,984_
_3,179_
10.
INTANGIBLE FIXED ASSETS
**_Cost_**
At 1st August 2023
Additions
At 31st July 2024
**_Accumulated Amortisation_**
At 1st August 2023
Charge for the year
At 31st July 2024
**_Net Book Value_**
At 31st July 2024
_At 31st July 2023_
11.
DEBTORS
12.
Other debtors and prepayments
CREDITORS: Amounts falling due within one year
Sundry creditors and accruals
Deferred income|**Computer**
**Equipment**
**£**
24,432
6,916
-3,938
27,410
17,701
5,183
-3,938
18,946
8,464
_6,731_
**2024**
£
177,184
177,184
**2024**
£
594,326
54,143
648,469|**Total**
**£**
67,638
12,530
-3,938|
|---|---|---|
|||76,230|
|||45,744
13,031
-3,938|
|||54,837|
|||21,393
_21,894_
**Website**
**Development**
**£**
25,530
0|
|||25,530|
|||17,020
8,510|
|||25,530|
|||0
_8,510_
**_2023_**
_£_
_139,112_|
|||_139,112_|
|||**_2023_**
_£_
_132,391_
_0_|
|||_132,391_|
_Included in the above are amounts of £7,610 relating to pensions (2023: £22,682)._
29
## 13. ANALYSIS OF NET ASSETS BETWEEN FUNDS
|_The comparative figures as at 31st July 2023 were -_
_Fixed assets_
_Current assets_
Current assets
Current liabilities
Net assets at 31 July 2024
_Current liabilities_
_Net assets at 31 July 2023_
Fixed assets|**Funds**
**£**
21,393
1,398,029
-648,469
770,953
_30,404_
_1,002,221_
_-132,391_
_900,234_
**Unrestricted**|**Restricted**
**Funds**
**£**
0
7,058
0
7,058
_0_
_10,606_
_0_
_10,606_|**2024**
**Total**
**£**
21,393
1,405,087
-648,469|
|---|---|---|---|
||||778,011|
||||_30,404_
_1,012,827_
_-132,391_|
||||_910,840_|
## 14. FUND DETAILS
## **DESIGNATED FUNDS**
The **Beginning Theology Fund** records the operations of the Beginning Theology course.
The **SMC South West Fund** records the operations of the delivery centre in Plymouth. During the year under review, the centre had an operating deficit of £49,800 (2023: £54,646), which, together with the brought forward deficit of £54,646, resulted in a cumulative deficit of £104,446.
The **SMC East Midlands Fund** records the operations of the delivery centre in Nottingham. During the year under review, the centre had an operating surplus of £23,565 (2023: deficit of £6,141, Nottingham & Leicester combined) which, together with the brought forward surplus of £94,262, gives a closing surplus balance of £117,827.
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 the final balance of £217,038 was released from this fund as a grant to SPTC, 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 posts of the McDonald Professor of Christian Theology and the Distinguished Emeritus Professor.
The **McDonald Nicaea Fund** is in respect of a donation received from the McDonald Agape Foundation to fund a series of research activities, academic conferences, colloquia, public lectures, and publishable materials examining the proceedings of the Council of Nicaea (325 AD) and its relevance to Christian orthodoxy in today’s world.
30
The **McDonald Fellowship** is in respect of a donation received from the McDonald Agape Foundation in support of the academic, scholarly and religious purposes of the college; it is specifically enabling the completion of the manuscript on Christian ethics and contemporary psychology’s assumptions about the concepts of morality.
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 **Innovation Funding** is a grant from Archbishops' Council in support of pioneering the Peter Stream into a new regional hub based at SMC East Midlands through working with local Dioceses.
The **Office for Students' Capital Grant** is a grant for investment in physical infrastructure, to help the college remain fit for purpose. This grant was spent on capital additions during the year.
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 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
McDonald Nicaea
McDonald Fellowship
Innovation
OfS Capital Grant
OfS Disability Grant
OfS Improving Outcomes|**Opening**
**Balance**
£
-13,329
-54,646
94,261
217,038
243,324
10,606
0
0
0
0
0
0
0
10,606|**Income**
£
88,202
211,112
511,148
0
810,462
3,392
93,000
52,500
7,065
72,646
11,602
4,261
36,360
280,826|**Expenditure**
£
45,803
260,913
487,582
217,038
1,011,336
6,940
61,978
47,799
7,065
72,646
0
4,261
36,360
237,049|**Transfers**
£
0
0
0
0
0
0
-31,022
-4,701
0
0
-11,602
0
0
-47,325|**Closing**
**Balance**
£
29,070
-104,447
117,827
0|
|---|---|---|---|---|---|
||||||42,450|
||||||7,058
0
0
0
0
0
0
0|
||||||7,058|
31
_The comparative figures for the year ended 31st July 2023 were -_
|_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_
_100,402_
_400,000_
_489,565_
_7,826_
_5,000_
_0_
_0_
_0_
_0_
_0_
_12,826_|**_Income_**
_£_
_31,726_
_170,392_
_490,539_
_0_
_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_
_0_
_5,658_
_2,085_
_43,127_
_120,426_|**_Transfers_**
_£_
_15,375_
_3,075_
_-18,450_
_0_
_0_
_0_
_0_
_-14,722_
_0_
_0_
_0_
_-14,722_|**_Closing_**
**_Balance_**
_£_
_-13,329_
_-54,646_
_94,261_
_217,038_|
|---|---|---|---|---|---|
||||||_243,324_|
||||||_10,606_
_0_
_0_
_0_
_0_
_0_
_0_|
||||||_10,606_|
## 15. LEASE COMMITMENTS
Total future minimum lease payments under non-cancellable operating leases are as follows:
|Within 1 year
2 - 5 years
More than 5 years|**2024**
**_2023_**
£
_£_
368
_2,680_
0
_223_
0
_0_
368
_2,903_|
|---|---|
32
16. SoFA COMPARATIVE FIGURES
_The comparative figures for the Statement of Financial Activities for the year ended 31st July 2023 are as follows-_
|_Expenditure on charitable activities:_
_Grants made_
**_INCOME_**
**_AT 31 JULY 2023_**
**_TOTAL FUNDS CARRIED FORWARD_**
_Donations & grants_
_Charitable activity income_
_Investment income_
**_TOTAL INCOME_**
**_EXPENDITURE_**
_Operation of college courses_
**_TOTAL EXPENDITURE_**
**_NET INCOME / EXPENDITURE and net_**
**_movement in funds_**
**_RECONCILIATION OF FUNDS_**
_Total funds brought forward_
_Transfers between funds_
**_NET OPERATING_**
**_INCOME / EXPENDITURE_**|**_General_**
**_Designated_**
**_Restricted_**
**_Total Funds_**
**_Fund_**
**_Funds_**
**_Funds_**
**_2023_**
_£_
_£_
_£_
_£_
_16,865_
_0_
_132,928_
_149,793_
_2,150,519_
_692,657_
_0_
_2,843,176_
_11,199_
_0_
_0_
_11,199_
**_-- Unrestricted Funds --_**|
|---|---|
||_2,178,583_
_692,657_
_132,928_
_3,004,168_|
||_2,094,404_
_774,386_
_120,426_
_2,989,216_
_0_
_164,512_
_0_
_164,512_|
||_2,094,404_
_938,898_
_120,426_
_3,153,728_|
||_84,179_
_-246,241_
_12,502_
_-149,560_
_14,722_
_0_
_-14,722_
_0_|
||_98,901_
_-246,241_
_-2,220_
_-149,560_
_558,009_
_489,565_
_12,826_
_1,060,400_|
||_656,910_
_243,324_
_10,606_
_910,840_|
33