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2023-07-31-accounts

REPORT OF THE GOVERNORS

and

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31[st] July 2023

Company number: 04418151 Charity registration number: 1096721

Registered office: 189 South Norwood Hill, London SE25 6DJ

Website: www.spurgeons.ac.uk

SPURGEON’S COLLEGE

Registered charity no. 1096721

Incorporating trust property held in connection with Spurgeon’s College registered charity no. 312888 and Falkland Park Trust registered charity no. 1096721-1

REPORT OF THE GOVERNORS

and

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31[st ] JULY 2023

Contents Page
Reference and administrative details 1
Report of the Governors 3
Report of the Independent Auditor 19
Statement of financial activities 24
Balance sheet 26
Statement of cash flows 27
Notes to the financial statements 28

SPURGEON’S COLLEGE

REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2023

REFERENCE AND ADMINISTRATIVE DETAILS

Spurgeon’s College is a company limited by guarantee registered in England and is also a charity registered with the Charity Commission. The governors are both the directors of the company and trustees of the charity.

Company registration number 04418151
Charity registration number 1096721
Registered office Spurgeon’s College
189 South Norwood Hill
London SE25 6DJ
Governors Rev’d Stuart Davison_(Vice-Chair)_
Prof Sir Leslie Ebdon_(Chair))_
Rev’d Jonathan Edwards
Mrs Joanne Gale
Mrs Charlotte Kirby-Thomson
Mr David Locke_(Treasurer)_
Rev’d Prof Philip McCormack (Principal)
Ms Charmaine Mhlanga (Student governor)
Mr Neil Sherringham
Pastor Michael White
Senior staff Rev'd Prof Philip McCormack (Vice-
Chancellor and_Principal_)
Rev’d Helen Stokley (Deputy Vice-Chancellor
and_Chief Operating Officer_)
Rev’d Dr Stephen Wright, (Vice Principal – Academic
Director)
Rev’d Seidel Abel Boanerges (Dean
of Ministerial Formation)

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REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2023

Principal advisers

Solicitors Muckle LLP Time Central
32 Gallowgate
Newcastle upon Tyne
NE1 4BF
Bankers NatWest Bank
1 High Street
Croydon
Surrey
CR9 1PD
Auditors Moore Kingston Smith LLP
6thFloor
9 Appold Street
London
EC2A 2AP
Investment Managers Rathbones
159 New Bond Street
London
W1S 2UD
Independent Financial Advisers AW Financial Management LLP
River House
1 Maidstone Road
Sidcup
Kent
DA14 5RH

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SPURGEON’S COLLEGE

REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2023

GOVERNORS’ ANNUAL REPORT

The governors have pleasure in presenting their report and the financial statements of Spurgeon’s College for the year ended 31[st] July 2023 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Acts purposes.

The financial statements comply with the Companies Act 2006, the Charities Act 2011, the Memorandum and Articles of Association, and follow the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102).

Structure, Governance and Management

Governing document

Spurgeon’s College is governed by its Articles of Association as adopted by Council on 18[th] June 2020.

The members of the charity are the members of the Council. In the event of the College winding up, each member of the Council undertakes to contribute an amount not exceeding £10. Upon the winding up or dissolution of the College, all remaining assets shall be given or transferred to another charity having the same or similar objects to the College in accordance with charity law.

The College occupies land and buildings in South Norwood, London. These, including a residential property, are owned by the Falkland Park Trust (Charity No: 1096721-1, previously Charity No: 1017769). Under a Charity Commission Scheme dated 13[th] February 2003, the company (Spurgeon’s College) became sole Corporate Trustee of the Falkland Park Trust.

On 29[th] April 2019 Spurgeon’s College Development Limited was incorporated as a wholly owned subsidiary of Spurgeon’s College. The company has been dormant since incorporation and will be used for future College development projects.

Validation and regulation

In the academic year 2022-23 the College successfully exercised the awarding and validating powers granted to by the Office for Students (OfS) the regulator for Higher Education in England. Spurgeon’s College is the first theological college in the UK to achieve Full Taught Degree Awarding Powers (TDAPs). TDAPs is seen to offer confirmation of reputation (the most precious commodity in higher education), greater autonomy, flexibility, leadership and economic benefits.

In 2021 the OfS relaunched the Teaching Excellence Framework or TEF with submission expected by January 2022. As a new degree awarding authority, Spurgeon’s made a TEF submission. On 28 September 2023, the results were announced, and Spurgeon’s received a Triple Gold award, the highest accolade possible. It also placed in the top 26 universities and colleges in the UK who have been awarded triple TEF Gold. The TEF is a national scheme run by the Office for Students that aims to encourage higher education institutions to improve and deliver excellence in the areas that students really care about: teaching, learning and achieving positive outcomes from their studies. The TEF does this by assessing and rating universities and colleges for excellence above a set of minimum requirements for quality and standards. In one year, Spurgeon’s moved from receiving Full Degree Awarding Powers to securing a

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triple Gold rating in the Teaching Excellence Framework. The College has this Triple Gold award for four years.

In the academic year 2022-2023 Spurgeon’s introduced its new undergraduate degree (BA in Theology) validated exercising its new powers. This included offering its new BA via Distance Learning. The College also brought its five postgraduate programmes under its own validation authority. In addition, the College also validated: The Professional Certificate in Ministerial Formation and The Foundation Year (Year Zero), which is the first year of our four-year BA in Theology (Hons) that prepares students for degree-level study in Theology. The College is currently working a BSc in Counselling for a September 2024 start, at Level 4 & 5, a LLB in Law and a BA in Business and Public Administration for a September 2025 start. The creation and delivery of new programmes, especially in the social sciences and liberal arts, will substantially increase the income form student fees in the short to medium term. It is the College’s intention to design and implement two new undergraduate programmes, in the humanities and social sciences, each year.

An important component in the TDAP powers granted to the College is the authority to validate other institutions and to authorise those institutions to grant academic awards on its behalf. In October 2022 the Irish Baptist College (IBC) formally approached Spurgeon’s to enter a process that would result in IBC being a validated institution. This involved a substantial amount of work by both institutions. This was noted in the QAA’s monitoring visit to the IBC in March 2023. In the QAA’s report it stated that, ‘The curriculum is currently being comprehensively reviewed and modified in light of the new expectations of Spurgeon’s College awards. This extensive work is due to be approved and implemented for the 2023-24 intake and has allowed for further engagement with the Quality Code and Subject Benchmark Statements in the revisions of the curriculum.’ The successful validation of the IBC is evidence of Spurgeon’s College commitment to the highest quality standards and the professional exercise of its new powers. As a degree awarding authority, Spurgeon’s College is actively assisting in securing the provision of theological education in the UK at university level, which could be strategically important.

Spurgeon’s College continues to ‘teach-out’ programmes that have students on validated programmes of the University of Manchester and Liverpool Hope University. It is an approved partner of the Institute of Pastoral Counselling and is an approved teaching centre for the Counselling and Psychotherapy Central Awarding Body or CPCAB.

Spurgeon’s College is regulated by the Office for Students (OfS) and subscribes to the Higher Education Statistics Agency (HESA), which collects, processes and publishes data about higher education in the UK, and the Office of the Independent Adjudicator (OIA), the independent body set up to review student complaints.

The College is also a member college of the Baptist Union of Great Britain, and a member of the Evangelical Alliance and the Micah Network.

Organisational structure and decision making

The management of the College is vested in the Board of Governors. The governors are directors of the company limited by guarantee and trustees of the charity. The Board meets on at least four occasions each year and is responsible for delivery of the College’s charitable objects, setting the strategic direction and upholding the values of the College.

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REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2023

The Council is the body to whom the governors are accountable. The Council also provides advice, acts in advocacy for the College and appoints the governors. The Council comprises:

The Board of Governors is assisted in its work by a number of advisory committees formed of governors, Council members, College supporters and members of staff. The Board sets the terms of reference for each committee, which are reviewed regularly, and appoints committee members with relevant expertise and experience. The advisory committees meet as and when required, provide minutes of each meeting to the governors, and also report on their activities to the annual general meeting of the Council.

The advisory committees are as follows:

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REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2023

The Academic Board is the body entrusted by the governors with overseeing the educational work of the College. The members during the year ended 31[st] July 2023 were as follows:

*Denotes members of staff who are remunerated for their service relating to the teaching and administrative activities of the College rather than in their role as members of the Academic Board.

The Board delegates the management of all operational, financial and academic matters to the Vice-Chancellor/Principal who in turn delegates relevant activities to the senior management of the College, the Heads of Departments: the Deputy Vice-Chancellor/Chief Operating Officer; the Academic Director; and the Dean of Ministerial Formation.

The Heads of Departments are invited to attend each Board meeting and are required to provide a report detailing the activities of their departments to inform Governors of their oversight of each department.

Governor recruitment and appointment

The Board of Governors comprises not less than nine and not more than 13 members. The quorum for the transaction of the business is the greater of one third of the governors or three.

At every annual general meeting one-third, or the number nearest to (but not greater than) one third of the governors (other than the Principal (ex-officio) and Student Governor (appointed by the governors)) retire from office but are eligible for re-appointment by the Council members. Governors, other than the Principal and Student Governor, are normally appointed for a term of three years. They serve for no more than nine years unless the governors exceptionally resolve to permit a further term for no more than one governor at a time. The Student Governor is appointed for a term of one year renewable for further periods of one year up to a maximum of four years.

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The Board of Governors has the power to co-opt new governors but those co-opted have to stand for election at the following annual general meeting. Co-options are made on the recommendation of the Nominations Group whose members review the skills matrix of the Board and role descriptions, and identify suitable candidates for appointment to the Board. Candidates are recruited from direct approaches, recommendations and referrals, and by advertising, as appropriate. The Board endeavours to reflect the diversity of the student body in its own composition, ensuring there is diversity of gender, age, ethnicity and denominational allegiance. Potential new governors meet the Nominations Group to discuss the role requirements.

Following appointment, all new governors are issued with a Governance Handbook and other appropriate documentation. Guidance is given on the roles and responsibilities of being a charity trustee and governor, and on the College’s governance structure. Meetings with key College personnel are arranged.

Remuneration

The governors are committed to ensuring a balance between paying staff to attract and retain the best people for the job and careful management of charitable funds.

In determining the remuneration paid to academic staff, the governors are cognisant of the remuneration given to those working in similar roles in other theological and Bible Colleges, and to ministers in the Baptist Union. Where possible, remuneration attached to jobs in support functions is benchmarked against similar jobs in the local jobs market. Cost of living increases may be awarded annually to all staff on the basis of a recommendation from the Finance Committee in the context of the annual budget setting process, following consideration of the increase in Retail and Consumer Price Indices and the College’s financial position.

Appointment of Chancellor

In April 2023, the College installed Pastor Rick Warren as its first honorary Chancellor. The Chancellor acts as the ceremonial figurehead of the College, with formal responsibilities. Dr Warren is the founding pastor of Saddleback Church in California and author of the best-selling The Purpose-Driven Church and The Purpose-Driven Life . As Chancellor, Pastor Warren will play a key role in supporting the vision of the College to train men and women for Christian mission, ministry and leadership in the contemporary world. Through his global reach, Pastor Warren reaches millions of people every day with a message of Christian hope. The impact of the appointment of Pastor Rick Warren as the first Chancellor of Spurgeon’s College is potentially significant, particularly in regard to increased student recruitment, potentially from multiple countries, and in assisting the College in its fundraising activities.

Objectives and activities

Objects

The College’s charitable objects are to advance the Christian religion in accordance with the beliefs and practices of Baptists and the interpretation of such beliefs and practices usually called evangelical, in particular through the provision of education, training, vocational preparation and support to Christians for mission and ministry.

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Our Mission

To train men and women for Christian mission, ministry and leadership in the contemporary world.

Our Vision

The College draws its vision from three sources:

The College Vision, approved in 2018 is:

Work has commenced on drafting the next iteration of our Vision.

Our Values

As a Christian Higher Education Theological College our values are directly drawn from and aligned with biblical principles, in particular:

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The College’s Values are consistent with and build upon ‘The 7 principles of public life[1] often referred to as the ‘Nolan Principles.’

Students

The College’s main activity is the provision of excellent education in a supportive environment, in particular training those called to Christian mission, ministry and leadership in the contemporary world is the provision of theological education and ministerial and practical training for Christian mission and ministry. Spurgeon’s is a welcoming and inclusive community – we believe that all are created in God’s image and loved by him, so we value each student and their unique contribution to the corporate life of the College.

Spurgeon’s College continues to prepare candidates for ordination to Baptist ministry within the Baptist Union of Great Britain, and train pastors and leaders from other denominations. The College also includes students who are pursuing a theological education for its own merits in its diverse learning community, and this further enriches the life and experience of all community members. Since its foundation, over 5,000 churches worldwide have been served by Spurgeon’s ministers and its trained ministers are active in over 35 countries. The College has also developed post-graduate provision for continuing ministerial development training and has a thriving post-graduate research community. It offers other accessible training packages for church members seeking to serve in lay capacities or pastoral supervision roles. The College’s counselling provision continues to grow and flourish and is considered a gold standard in the provision of counselling education in the South of England. One of the new programmes the College is working on is a new undergraduate degree in counselling, which will be qualifying.

Public benefit

The governors carefully consider the Charity Commission’s guidance on public benefit in determining what work is done, and the guidance informs the College’s aims, plans and activities. The governors take seriously their responsibility to offer high quality academic provision that also represents value for money to students and to taxpayers.

Those who benefit from the College’s work directly are the students. Those who study and/ or train for ministry, both ordained and lay, and also, indirectly, those who worship in and benefit from the ministry of churches in the UK and around the world which are served by students and former students. Those who study to become professional counsellors and enrich their community through the skills they learn at Spurgeon’s College.

The students benefit through:

1 See https://www.gov.uk/government/publications/the-7-principles-of-public-life/the-7-principles-ofpublic-life--2

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The benefit to the general public comes through:

The governors ensure the courses at Spurgeon’s College are designed for those who seek to further their knowledge of Christian theology or train for Christian ministry and train to become counsellors. Whilst the College is part of the Baptist Union of Great Britain, a wide variety of church traditions are represented within the student body and the content of the courses offered reflects this diversity.

The College’s Access and Participation Plan demonstrates the College’s commitment to fair access and opportunity. This is reflected in key data included in the TEF panel statement on the College’s submission to the Teaching Excellence Framework 2023. The data showed that 50% of students would be eligible for Free School Meals, 36.4% come from Indices of Multiple Deprivation (IMD) quintiles 1 and 2, 79.8% are mature and demographically the student body is diverse: 52.6% White, 35% Black, 6.3% Asian, 3.1% Mixed and 1.9% Other. The College’s senior management keep access and participation at the heart of its approach to recruitment and as a consequence has worked in partnership with the New Testament Church of God, a majority Black denomination in the UK, in developing a validated programme to train its ministers. Student recruitment unto this new programme will increase the number of Black students studying on a Spurgeon’s validated degree.

Fees are set at rates which are appropriate bearing in mind similar courses offered by other Baptist and Bible colleges and centres delivering counselling courses. All courses are subsidised as the income from fees is less than the cost of providing courses. Donations and legacies from supporters, income derived from use of properties and assets, and investment income, all contribute to the subsidy.

Students who are training for the Baptist ministry have access to the Baptist Union Bursary Fund. They and other students have access to bursary funds administered by the College and to grants from charitable trusts. The College is active in ensuring that students with financial needs have information about raising money to fund their training and are able to apply for bursaries.

Civic contribution

As a higher education institution with the same powers as any UK university to create, validate and offer academic degrees, the College has consciously worked to develop the civic role it quietly plays in the local life of Croydon. During the Covid-19 pandemic, the College became aware of a community lunch club, serving senior citizens with specific needs, that had been made homeless. For the last two years the College has hosted the lunch club two days per week, free of charge, with lunch club staff using the College’s industrial class kitchen facilities to prepare and cook hot meals for their clients. The two distinct groups that form the lunch club look forward to their weekly visit to the College and students on a ministerial track have enjoyed their interaction with a wonderful group of people form the local community.

The College’s proactive engagement with local community groups resulted in it becoming aware of Amity Youth Development, a community organisation working with young people

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aged 17 – 30 who live in the London and Greater London Region. Amity supports young people by helping them to enter into employment, education or training. The College continues to provide Amity with an office and classroom within its main educational facility to use. To date, scores of young people have been trained by Amity at Spurgeon’s and have gone into employment or further education.

One of the main civic contributions the College quietly makes to the community in Croydon and more widely across the UK, is the work its ministers in training do within their local communities through their ministerial placements in local churche7s. In the financial year to 31[st] July 2023, over 50 ministerial students from Spurgeon’s worked as ministers in training in local churches, often as the sole minister. The impact of this ministry upon local communities is often immense. Many churches run foodbanks and provide vital community support to the most marginalised within those communities. The academic and theological studies undertaken by the College’s ministers in training is put into practice in scores of villages, towns and cities across the country. College staff actively deliver placement support for ministers in training and ensure that both the student and the local church is supported.

The College continued to work closely with the Borough of Croydon in 2023, hosting the newly elected Executive Mayor Jason Perry on a number of occasions. It has worked closely with Council Officers to identify the educational provision required for the residents of Croydon and the needs of employers seeking graduate employees. The Vice and Deputy-Vice Chancellor have discussed with the Executive Mayor and key Council Officers, the potential for a Business Leaders breakfast with a focus upon employment needs and how the College’s programme of designing and delivering new degree programmes can contribute to address any shortfall. This potential diversification of educational offer will not only assist in possible regeneration of the local community but also contribute to the improving financial position of the College moving forward.

Additional public interest governance principles

The governors monitor good practice within both the charity and Higher Education sectors. This means that Spurgeon’s College is seeking to align its governance processes, in regard to Higher Education, with the current guidance from the Committee of University Chairs contained in The Higher Education Code of Governance[2] . The governors are satisfied that adequate and effective measures are in place to ensure that when the College is in receipt of public funds they are appropriately used, in line with the conditions of the grant and the principles of regularity, propriety and value for money to protect the interest of taxpayers and consistent with its Charitable objects.

Volunteers and Donors

The College’s work is supported by a number of volunteers whose contribution is invaluable and underpins the success of the College. In addition to those involved with the College’s governance, volunteers assist with the Library, with the Learning Enhancement Department, with church placements, and in various administration support roles.

In its 167-year history, the College has benefited from the generosity of its supporters and donors. The College has remained faithful to the desire of its founder Charles Spurgeon that it

2 See https://www.universitychairs.ac.uk/wp-content/uploads/2015/02/Code-Final.pdf

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should live by faith. The many small and large donations both encourage and practically help the College to remain faithful to its mission and vision and the governors wish to acknowledge the kindness of its stakeholders, friends and supporters.

Strategic report

Agreed strategy

The progress in relation to the College’s objectives as defined in 2018 is reported as follows:

The College applied for Taught Degree Awarding Powers (TDAPs) in September 2020. It was awarded Full TDAPs 18 May 2022 and therefore this objective has been achieved.

This cannot be requested until September 2025.

The College will work towards applying for RDAPs in 2023 with the intention of making an application in September 2024.

Objectives, c, d and e will be pursued once Taught Degree Awarding Powers are achieved.

The College continues to provide excellent and continually improving levels of education, formation and learning resources. The NSS results for 2022 reveal that the College had a score of:

he College had a score of:
Area Score Benchmark
overall satisfaction 94.1% 87.9%
the teaching on my course 95.6% 91.1%
learning opportunities 90.2% 86.7%
assessment and feedback 89.7% 79.8%
academic support 90.2% 79.5%
organisation and management 86.3% 82.9%
learning resources 86.3% 82.9%
learning community 87.5% 69.4%
student voice 82.35% 68.55%

Student feedback at a unit, course and institution level also records high rates of satisfaction. Continued registration with the Office for Students and the

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REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2023

SPURGEON’S COLLEGE

College’s continuing commitment to excellence demonstrates the College’s commitment to continually improve.

The governors have commissioned and implemented an Access and Participation Plan (2020/21 to 2024/5) which is available on the College website and is monitored by the Access and Participation Monitoring Group, chaired by a governor.

The Principal and COO continue to discuss with Croydon Council ways in which the College could help raise attainment of the young people within the borough. The Community Worker continues to actively reach out to and work with community groups in South Croydon and engaging with local secondary schools.

The College has a formal partnership with the New Testament Church of God to assist it in designing university level ministerial training and formation programmes. The first validated programme saw its first cohort starting in September 2023.

The College’s investment in its digital capabilities ensured that during this reporting period it continued to resource churches in London and across the UK. This is evidenced by offering the majority of its academic provision via Distance Learning, maximising its investment in the advanced Panopto system used by 22 out the top 25 universities in the world.

The College continues to be in partnership with Anderson University in South Carolina and is engaged in continuing talks with a number of international partners, with whom the College is forming partnerships and programmes.

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REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2023

The governors, finance committee and senior management teams continue to monitor and implement the financial strategy adopted by the governors to diversify the income streams of the College through broader educational offering, building development and revenue from property management.

Financial review

General (unrestricted) fund

The College recorded a deficit on the General Fund in 2022/2023 of £2,011,763 (2021/2022, £1,126,666).

The major income stream is the fees charged to students. The College continues to be thankful for the donations and legacies which also contribute to the College’s income. The College continued to receive public funds from the Office for Students in the form of a teaching and learning grant. This has been recorded in other income with an explanatory note 2a. It should be noted that the College’s accommodation income has continued to be reduced because lettings were not possible due to Covid-19 restrictions. In the 2022/2023 period, 98% expenditure was on charitable activities and 2% on generating funds (2021/2022, 98% and 2% respectively). The College’s operating costs remained consistent with the previous year, with staff working to ensure the College was best placed to meet the increased regulatory and reporting burden associated with the Office for Students and the application process for degree awarding powers.

Restricted and endowment funds

A range of restricted funds appear in the accounts, being money donated for specific purposes such as student support through bursaries and enhanced teaching facilities. The governors are grateful for income received that has supported a range of specific projects.

Total income for the year was £79,070 (2022: £105,262) and total expenditure was £126,350 (2022: £126,119). At the yearend total restricted funds were £780,684. Total endowment funds at the yearend were £431,015.

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Investment policy

The College's investment portfolios are managed on a discretionary basis by investment managers. The investment objectives of the respective portfolios are set out in an investment policy statement, which also prescribes the ethical policies to be followed by the investment managers. Investments are managed to achieve a balanced return between income and capital growth, generating income for use for current purposes whilst maintaining the value of investments for the benefit of future students. The Finance Committee conducts a review meeting once a year with the investment managers and the independent financial adviser and reviews the performance of investments regularly.

Reserves policy and future prospects

In accordance with Charity Commission guidance, the governors monitor the level of funds held in unrestricted reserves, recognising the pressures caused by the imbalance between income and expenditure at certain times of the year. Whilst income fluctuates over the course of a College year, salaries and other regular monthly costs continue throughout the year. Given the annual shortfalls between College income and expenditure in recent years, it is also necessary to maintain reserves which can help fund shortfalls as and when they occur whilst the governors continue work to return General Fund income and expenditure after the receipt of donations to equilibrium.

The governors have determined that the optimum level of free reserves should be sufficient to cover six month’s budgeted operational expenditure, which equals £1,587,000. This compares with the reported unrestricted free reserves of £342,251 as at 31st July 2022 – see Note 15 “Analysis of Net Assets by Fund” for Total Unrestricted Funds less Fixed Assets and related loan funding (Long Term Creditor). The reserves dipped below this in this financial year, in anticipation of the sale of the heritage asset, which was sold post year end for over £1.6 million. Therefore, subsequent to the year end the reserves will be in line with the reserves policy.

In order to secure the financial future of the College, the governors have been working on a project to release value from the College site to provide an ongoing income stream, an increase in reserves, and new buildings for academic use. In this period continued progress has been made on a major development project which will achieve these aims. A considerable amount of work has been done on a project that will provide a substantial number of housing units for sale and rent whilst protecting the majority of the site for continued use by the College for its purposes. The College has strategically invested in this project in order to maximise the return and had been expecting the planning application to be approved in 2023. Due to a combination of the ongoing impact of Covid-19 restrictions and well-publicised financial pressures impacting upon Croydon Council, the College’s planning application is now anticipated to be approved in 2024.

Fundraising activity

The College does not currently employ anyone dedicated to fundraising, nor does it use external fundraisers or commercial participators. The fundraising focus is on developing relationships with College supporters, which is done through the College social media channels, electronic communications and events. It has been more difficult to meet with supporters in the period due to the pandemic. The College has not received any complaints about its fundraising activities and practices.

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COVID-19

Covid-19 continues to impact upon the life of the College community but a greatly reduced rate than in the 2021-2022 outbreak. In this reporting period the College’s response to Covid-19 was removed as a standing item on the Board of Governors agenda but retained the matter for review at one Board meeting in the year.

Going concern

The governors 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 charitable company to continue as a going concern. The trustees have made this assessment for a period of at least 12 months from the date of approval of the financial statements. Further detail of this assessment is found in note 1, page 28.

The governors have a reasonable expectation that the College has adequate resources to continue in operational existence for the foreseeable future. They continue to adopt the going concern basis of accounting in preparing the financial statements. The governors recognise that the loan from TAB is due to be repaid in October 2024 and the College is actively seeking to refinance and extend the repayment terms.

Principal risks, uncertainties and opportunities

The College has continued to implement a number of actions that resulted in a comprehensive governance review undertaken in November 2019. The Audit and Risk committee continues to function effectively and is embedded within the College’s normal rhythm of operations. The introduction of three new middle managers within the Operations Department, as a consequence of the governance review, continues to yield the anticipated results, which have been and continue to be felt across the institution. To facilitate its strategic intention to assist in securing the provision of theological education, at university level, in the UK and to implement its programme of new degree creation, the College will seek to employ a Head of Validation.

Maintaining the wide variety of activities of the College is not without its challenges and the governors have sought to manage the risks of such a faith undertaking by identifying the areas of major potential risks as: the College's ongoing challenging financial position, where operating income is less than operating expenditure and the College is dependent on receiving charitable donations and legacies and generating income from other sources; failure to comply with legal requirements and OfS regulation; and the loss of key employees and inability to replace key staff effectively.

The College is vulnerable to a decline in student numbers at a time when church attendance is decreasing and congregations find it more difficult to afford to pay a minister, and the economic situation makes it harder for students to afford even the subsidised fees charged. Many independent theological and bible colleges are struggling to attract sufficient numbers of students and are facing financial problems. The College’s location in London with a growing and diverse church scene, its evangelical tradition, the TEF Triple Gold award enhancing its reputation for excellence, the variety of courses and modes of study offered, and the introduction of two new degree programmes each year will continue to help mitigate the risk of a decline in student recruitment.

Page 16

SPURGEON’S COLLEGE

REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2023

As set out in the financial review section above, a considerable amount of work has been done to realise value from the College’s site to ease the challenging financial position. The proposed major development will provide a one-off increase in reserves and provide the opportunity for the College to build new academic buildings. The new academic facilities will provide substantial increased capacity to increase student numbers on its expanding university offer. In this reporting period the College continued to make progress in refining its plan to develop the site to help secure the financial future of the College.

The project to develop the site of Raleigh Park Baptist Church, which closed 31 December 2018, successfully achieved full planning permission. The site was offered for sale in 2021 and received a number of competitive offers from developers. The sale of the site in 2022 delivered a significant financial return, including the provision of a church hall which will come under the ownership of the College in January 2024. This project evidences the College’s ability to deliver imaginative projects to support the primary business of the institution.

The Governors are aware that the College compares well on cost per student in all areas other than regulation and compliance: due to the size of the student body, the cost of fees paid to regulatory bodies, staff costs in academic administration, regulation and compliance areas, and IT costs associated with these areas, is considerably higher per student than for other larger HE providers. This is a source of concern and every effort is made to operate efficiently and cost effectively.

The continued highly respected reputation of the College is crucial to its existence. The College participates actively in the Baptist Union of Great Britain and Evangelical Alliance, and maintains links locally, nationally and internationally. The Council, College Conference (alumni network) and the College’s supporter base play a key role as ambassadors for the College.

Governors’ responsibilities for the financial statements

The governors (who are also directors of Spurgeon’s College for the purposes of company law) are responsible for preparing the Report of the Governors (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practices including FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland).

Company law requires the governors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period. In preparing these financial statements the governors are required to:

The governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financial statements comply with the Companies Act 2006.

Page 17

SPURGEON’S COLLEGE

REPORT OF THE GOVERNORS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] JULY 2023

They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention of fraud and other irregularities.

Disclosure of information to auditors

To the knowledge and belief of the governors, there is no relevant information that the College’s auditors are not aware of, and the governors have taken all the necessary care to ensure and establish that the auditors are aware of any relevant information.

Auditors

Moore Kingston Smith LLP will be proposed for reappointment in accordance with the provisions of the Companies Act 2006 and the Charities Act 2011.

This report has been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and was approved by the Board of Governors (in their capacity as company directors) on 15 January 2024.

Signed on behalf of the governors:

LES EBDON Chair 15 January 2024

Page 18

SPURGEON’S COLLEGE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SPURGEON’S COLLEGE

Opinion

We have audited the financial statements of Spurgeon’s College (‘the charitable company’) for the year ended 31 July 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

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

Page 19

SPURGEON’S COLLEGE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SPURGEON’S COLLEGE

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 course of 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 themselves. 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.

Opinions 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 material misstatements in the report of the governors.

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 17 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.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 20

SPURGEON’S COLLEGE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SPURGEON’S COLLEGE

Auditor’s Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could 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.

Page 21

SPURGEON’S COLLEGE INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SPURGEON’S COLLEGE

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.

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.

Page 22

SPURGEON’S COLLEGE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SPURGEON’S COLLEGE

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.

Neil Finlayson (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Date 15/01/2024 9 Appold Street London EC2A 2AP

Page 23

SPURGEON’S COLLEGE

F 1

STATEMENT OF FINANCIAL ACTIVITIES (including the Income and Expenditure Account) FOR THE YEAR ENDED 31st JULY 2023

Note
Income from:
Grant And Fee Income
2a
Donations And Legacies
2b
Income From Charitable Activities
2c
Investment Income
3a
Other Income
Total Income
Expenditure
Raising Funds
Costs of raising voluntary income
4
Charitable activities
Student-related expenditure
5
Total expenditure
Net expenditure before gains on
investments
Transfers between funds
Gain/(Loss) on the sale of fixed assets
Gain/(Loss) on Investments
Movement in funds
Gains/(Loss) on revaluation of fixed assets
Actuarial gains on DB Pension Scheme
Net movement in funds
Fund balances b/fwd
Fund balances c/fwd
at 31st July 2022		 Unrestricted
Restricted
Endowment
2023
2022
Funds
Funds
Funds
Total
Total
£
£
£
£
£
765,767
54,455
-
820,222
919,643
266,640
10,345
-
276,985
184,355
47,055
1,632
-
48,687
23,448
-
12,606
12,038
-
24,644
16,583
70,642
600
-
71,242
48,026
1,162,710
79,070
-
1,241,780
1,192,055
57,220
3,513
5,781
66,514
24,683
3,117,253
117,056
-
3,234,309
2,274,310
3,174,473
120,569
5,781
3,300,823
2,298,993
(2,011,763)
(41,499)
(5,781)
(2,059,043)
(1,106,938)
-
-
-
-
-
130,000
-
-
130,000
372,531
(2,866)
-
(11,966)
(14,832)
(8,478)
(1,884,629)
(41,499)
(17,747)
(1,943,875)
(742,885)
395,302
-
-
395,302
472,000
-
-
-
-
-
(1,489,327)
(41,499)
(17,747)
(1,548,573)
(270,885)
7,594,255
822,188
448,762
8,865,205
9,136,090
6,104,928
780,689
431,015
7,316,632
8,865,205

All amounts relate to continuing activities and there are no recognised gains or losses other than those included above

The notes on pages 28 to 39 form part of these financial statements

Page 24

SPURGEON’S COLLEGE

F 2

STATEMENT OF FINANCIAL ACTIVITIES - DETAILED COMPARATIVE FIGURES FOR THE YEAR ENDED 31st JULY 2023 (continued)

Note
Income from:
Grant And Fee Income
2a
Donations And Legacies
2b
Income From Charitable Activities
2c
Investment Income
3a
Other Income
Total Income
Expenditure
Raising Funds
Costs of raising voluntary income
4
Charitable activities
Student-related expenditure
5
Total expenditure
Net expenditure before gains on
investments
Transfers between funds
Gain/(Loss) on the sale of fixed assets
Gain/(Loss) on Investments
Movement in funds
Gains/(Loss) on revaluation of fixed assets
Actuarial gains on DB Pension Scheme
Net movement in funds
Fund balances b/fwd
Fund balances c/fwd
at 31st July 2022		 Unrestricted
Restricted
Endowment
2022
Funds
Funds
Funds
Total
£
£
£
£
868,426
51,217
-
919,643
143,603
40,752
-
184,355
21,816
1,632
-
23,448
4,922
11,661
-
16,583
48,026
-
-
48,026
1,086,793
105,262
-
1,192,055
18,432
-
6,251
24,683
2,195,027
79,283
-
2,274,310
2,213,459
79,283
6,251
2,298,993
(1,126,666)
25,979
(6,251)
(1,106,938)
(25)
25
-
-
372,531
-
-
372,531
(1,589)
-
(6,889)
(8,478)
(755,749)
26,004
(13,140)
(742,885)
233,000
239,000
-
472,000
-
-
-
-
(522,749)
265,004
(13,140)
(270,885)
8,117,004
557,184
461,902
9,136,090
7,594,255
822,188
448,762
8,865,205

Page 25

SPURGEON'S COLLEGE

F 3

Company Number: 4418151

BALANCE SHEET AS AT 31st JULY 2023

BALANCE SHEET
AS AT 31st JULY 2023
2023 2023 2022 2022
Note £ £ £ £
Fixed Assets
Tangible Fixed Assets 8 11,212,742 10,473,354
Investments 9 501,778 534,045
11,714,520 11,007,399
Current Assets
Property to be sold 8 - 540,000
Debtors & Prepayments 10 1,109,784 311,609
Cash 15 520,578 329,490
1,630,362 1,181,099
Creditors : Amounts falling due
within one year
Creditors & Accruals 594,674 617,505
Fees received in advance 54,631 48,205
11a 649,305 665,710
Net Current Assets 981,057 515,389
Total assets less current liabilities 12,695,577 11,522,788
Creditors: amounts falling due after more than one year 11b 5,378,945 2,657,583
Provisions for Defined Benfits Pension Schemes 16 - -
Net Assets 7,316,632 8,865,205
Represented by Funds
General Funds 15 6,104,928 7,594,255
Total Unrestricted Funds 6,104,928 7,594,255
Restricted Funds 13 780,689 822,188
Endowment Funds 14 431,015 448,762
15 7,316,632 8,865,205

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The notes on pages 28 to 39 form part of these financial statements

Approved by the Governors on 15 January 2024 and signed on their behalf by:

Professor Sir Les Ebdon CHAIR

David Locke HONORARY TREASURER

Page 26

SPURGEON’S COLLEGE

F 4

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31st JULY 2023

2023 2023 2022 2022
£ £ £ £
Cashflows from operating activities
Net Expenditure (1,943,874) (742,885)
Adjustments for:
Depreciation 23,951 30,453
Loss/(Gain) on investments and investment property 14,833 8,478
Decrease/(increase) in debtors (798,176) 49,223
Increase/(Decrease) in creditors (including loans) (16,405) (226,491)
(Increase)/Decrease in current loans 5,154 201,544
Increase/(Decrease) in pension provisions - (79,475)
Investment Income (51,531) (40,030)
Interest payable 673,983 163,372
Loss/(Gain) disposed fixed assets (130,000) (372,531)
(278,191) (265,457)
Cash flows used in operations (2,222,065) (1,008,342)
Cash flows from investing activities
Proceeds from sales of tangible assets 670,000 1,550,000
Proceeds on disposal of investments 149,775 110,892
Investment Income 51,531 40,030
Purchase of Property, Plant and Equipment (368,036) (513,020)
Purchase of investments (132,341) (95,643)
370,929 1,092,259
Cashflows from financing
Interest paid on loans (673,983) (163,372)
Proceeds from new loans 5,050,000 1,834,467
Repayment of loans (2,333,793) (1,634,476)
2,716,208 199,989
Net increase/(decrease) in cash 191,088 120,536
Cash at the beginning of the year 329,490 208,954
Cash at the end of the year 520,578 329,490
Analysis of cash and cash equivalents and changes in net debt
At 1st August Cashflows At 31st July
2022 2023
£ £ £
Cash at Bank 329,490 191,088 520,578
Loans (3,002,099) (2,716,208) (5,718,307)
(2,672,609) (2,525,120) (5,197,729)
At 1st August Cashflows At 31st July
2021 2022
£ £ £
Cash at Bank 208,954 120,536 329,490
Loans (2,802,110) (199,989) (3,002,099)
(2,593,156) (79,453) (2,672,609)

Page 27

SPURGEON’S COLLEGE

N 1

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2023 1 ACCOUNTING POLICIES

1.1 Basis of accounting

The financial statements have been prepared in accordance with applicable accounting standards, and accordance with The Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) and the Charities Act 2011. They are drawn up on the historical accounting basis, except as stated in sub paragraph 1.5. The charity meets the definition of a public benefit entity under FRS 102.

1.2 Going concern

The governors 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 charitable company to continue as a going concern. The governors have considered the fact that the timing of the repayment of a loan included within long term creditors is uncertain due to delays in granting planning permission on a site owned by the charitable company held for development, which has been agreed to be sold to a developer. This loan is currently due for repayment in October 2024 however it is not known whether planning permission will be granted and the site sold by that date. The charitable company has approached its finance broker to explore the possibly of refinancing or extending the loan in the event that they are not able to settle this before it falls due for repayment.

After having held positive discussions with its finance broker and the developer, the governors have a reasonable expectation that the College has adequate resources to continue in operational existence for the foreseeable future, and as a result they continue to adopt the going concern basis of accounting in preparing the financial statements. The governors have made this assessment for a period of at least 12 months from the date of approval of the financial statements.

As described in note 21 (Post balance sheet events), subsequent to the year end the College sold its Spurgeon heritance collection, which has significantly improved its cashflow in the short term and has strengthened the liquidity position of the Charitable Company.

1.3 Student fees, grants receivable, income from student accommodation and donations

Fees are recognised in the year to which they relate. Where debts exceed 3 years a 100% provision is made.

1.4 Legacies

Legacies are normally accounted for when received, and adjusted for legacies notified during the year but received after the year end.

1.5 Fixed assets and depreciation

The company owns the land and buildings of the college site at Spurgeon’s College, South Norwood Hill, London SE25 6DJ.

In the past, the charity has taken the advantage of the option to use the value of land and buildings at the date of transition to FRS 102 (1st September 2014) as deemed cost and no depreciation was charged in respect of freehold land and buildings.

During the 2020/21 year, the trustees chose to change the accounting policy to hold land and buildings at fair value. The trustees believe that this gives a more reliable reflection of the company’s ability to fulfil its charitable objects. The land and buildings have been revalued as per a report prepared by Gerald Eve reflect the existing education buildings in their current condition. This gave a value for the existing buildings of £7,500,000.

Properties are maintained in a good state of repair prolonging their useful life and enhancing their residual value. The directors consider the useful economic life of the property to be in excess of 50 years, and that it did not diminish during the period under review. Consequently, no charge for depreciation is made.

The Trustees carry out an annual review to consider the useful life and estimated residual value of the properties; this includes reviewing for any impairment.

Tangible fixed assets costing £1,000 or more are capitalised at cost. Depreciation is provided on all tangible fixed assets calculated to write off the cost on a straight line basis over their expected useful economic life as follows:-

Computer equipment 3 years Heating Plant 10 years
Furniture and office equipment 5 years Building improvements 20 years

Page 28

SPURGEON’S COLLEGE

N 2

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2023 (continued)

1.6 Investments

Investments are stated in the financial statements at market value. The historical cost is set out in Note 9.

1.7 Funds

Certain items of income and expenditure which relate to such funds created for specific purposes are taken directly to the appropriate restricted and endowment funds.

1.8 Taxation

The College is a registered charity under the Charities Act 2011 & has been recognised by Her Majesty's Revenue and Customs.Therefore no liability to corporation taxation arises on its charitable activities.

1.9 Expenditure

Expenditure is accounted for on an accruals basis. All charitable expenditure in furtherance of the charity's objectives relate to the provision of educational services. Costs of raising funds includes cost directly attributable for the provision of the charitable objectives.

1.10 Operating Lease Policy

Rentals payable under operating leases are charged on a straight line basis to the statement of financial activities over the term of the lease.

1.11 Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The following judgements and estimates are considered by the governors to have the most significant effect on amounts recognised in the financial statements.

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

See note 8 for the carrying amount of the property, plant and equipment and note 1.4 above for the useful economic lives for each class of asset.

1.12 Corporate Govenance and Internal Control

The College Board of Governors is responsible for the statutory oversight of the College to ensure it meets the standards of a charity, a company and a higher education instiuition which has access to public funds. In doing so it recognises the core values and primary elements of governance as set out in the Commitee of University Chairs (CUC) Higher Education Code of Governance. The Board is responsible for ensuring the the College has in place the physical and human resources to meet the needs of its students and for ensuring the enhancement of the learning experience and the maintenance of its academic standards. The directors meet for full Board meetings at least six times per academic year with additional meetings held with the agreement of the Chair of the Board. The College Principal and Senior Management Team keeps the Board informed of all relevant activity and the governors undertake all relevant and necessary training. The Principal is a member of the board and the College executive are always in attendance at Board meetings. The College conducts its business through the following committees, which all have core external committee members:

Page 29

SPURGEON’S COLLEGE

N 3

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2023 (continued)

2a
GRANT AND FEE INCOME
Grant income from OfS
Grant income from other bodies
Fee Income for taught awards (ex VAT)
Fee income for research awards (ex VAT)
Fee income from non-qualifying courses (ex VAT)
Taught grant and fee income
Validation activities
Discounts and unrecovered charges
2b
DONATIONS AND LEGACIES
Donations
Legacies received
2c
INCOME FROM CHARITABLE ACTIVITIES
Accommodation charges
Rent from properties
3a
INVESTMENT INCOME
Dividends and interest on investments
Bank interest
4
COSTS OF RAISING FUNDS
Publicity and Fundraising expenses
Investment Management Charges
General Fund
General Bursary Fund
Pringle Fund
Vectis Fund
Copley Fund		 2023
2022
Unrestricted
Restricted
Endowment
Funds
Funds
Funds
Total
Total
£
£
£
£
£
12,387
854
-
13,241
11,880
-
53,601
-
53,601
51,217
494,140
-
-
494,140
615,655
-
-
-
-
3,750
224,887
-
-
224,887
214,299
731,414
54,455
-
785,869
896,801
30,000
-
-
30,000
-
4,353
-
-
4,353
22,842
765,767
54,455
-
820,222
919,643
165,496
10,345
-
175,841
151,946
101,144
-
-
101,144
32,409
266,640
10,345
-
276,985
184,355
21,800
-
-
21,800
-
25,255
1,632
-
26,887
23,448
47,055
1,632
-
48,687
23,448
2,591
12,038
-
14,629
14,171
10,015
-
-
10,015
2,412
12,606
12,038
-
24,644
16,583
55,976
3,513
-
59,489
17,087
1,244
-
-
1,244
1,345
-
-
1,790
1,790
1,935
-
-
719
719
777
-
-
2,693
2,693
2,913
-
-
579
579
626
57,220
3,513
5,781
66,514
24,683

Page 30

SPURGEON'S COLLEGE

N 4

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2023 (continued)

5 Student-related expenditure

SUMMARY OF EXPENDITURE
Tuition Costs
Domestic Costs
Establishment Costs
Administration Expenses
Governance Cost (Note 7)
TUITION COSTS
Tutors' salaries, NI & pension contributions
Visiting tutors and examining costs
Travel allowances and expenses
Computer and network support
Property expenses
Student registration and validation fees
Miscellaneous tuition expenses
Library purchases
Depreciation of computer equipment
Student support and other disbursements
Sundry expenses
DOMESTIC COSTS
Contract Catering
Domestic expenses
Depreciation of equipment
ESTABLISHMENT COSTS
Light and heat
Rates and insurance
Repairs and maintenance
Repairs - Nursaries House
Salaries, NI and pension contributions
Depreciation
ADMINISTRATION EXPENSES
Salaries, NI and pension contributions
Printing postage and stationery
Telephones
Travel, Training and entertaining
Finance expenses
Professional fees
Sundry Expenses
Equipment		 2023
2022
Unrestricted
Restricted
Endowment
Funds
Funds
Funds
Total
Total
£
£
£
£
£
1,230,197
113,688
-
1,343,885
1,245,436
170,029
394
-
170,423
137,316
254,393
-
-
254,393
208,177
1,425,913
2,974
-
1,428,887
645,512
36,721
-
-
36,721
37,869
3,117,253
117,056
-
3,234,309
2,274,310
795,952
-
-
795,952
696,074
23,740
-
-
23,740
26,022
30,375
445
-
30,820
11,365
169,180
-
-
169,180
191,731
3,389
861
-
4,250
10,560
98,627
-
-
98,627
134,688
41,181
-
-
41,181
38,340
47,191
-
-
47,191
43,040
5,701
-
-
5,701
9,240
14,861
112,382
-
127,243
84,376
-
-
-
-
-
1,230,197
113,688
-
1,343,885
1,245,436
116,638
257
-
116,895
56,442
51,478
137
-
51,615
79,379
1,913
-
-
1,913
1,495
170,029
394
-
170,423
137,316
90,491
-
-
90,491
51,280
28,637
-
-
28,637
28,738
36,060
-
-
36,060
31,589
(11)
-
-
(11)
2,718
82,880
-
-
82,880
74,134
16,336
-
-
16,336
19,718
254,393
-
-
254,393
208,177
356,768
-
-
356,768
345,735
23,522
180
-
23,702
25,202
17,101
-
-
17,101
17,003
624
-
-
624
747
933,846
-
-
933,846
218,653
85,014
-
-
85,014
27,713
8,210
2,794
-
11,004
10,125
828
-
-
828
335
1,425,913
2,974
-
1,428,887
645,513

Page 31

SPURGEON'S COLLEGE

N 5

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2023 (continued)

6 ACCESS AND PARTICIPATION

Access Investment
Financial Support
Research and Evaluation
7
GOVERNANCE COSTS
General Fund
Auditors’ remuneration
Annual audit
Governors’ expenses reimbursed
8
TANGIBLE FIXED ASSETS
Properties
For use by Charity
£
Cost & Valuation
At 1st Aug 2022
9,210,000
Revaluations
-
Additions
-
Transfer to current assets
-
Disposals
-
At 31st Jul 2023
9,210,000
Depreciation
At 1st Aug 2022
-
Charges
-
Disposals
-
Change for the period
-
At 31st Jul 2023
-
Net Book Value
At 1st Aug 2022
9,210,000
At 31st Jul 2023
9,210,000		 Actuals
Per Plan
£
£
12,000
12,000
64,828
60,850
10,000
10,000
86,828
82,850
2023
£
34,355
2,366
36,721
Building
improvements
Equipment
£
£
186,578
200,895
-
-
-
5,984
-
-
-
(64,397)
186,578
142,482
130,454
182,212
15,663
8,287
-
(64,397)
15,663
(56,110)
146,117
126,102
56,124
18,683
40,461
16,380
2023		 2022
£
37,141
728
37,869
Assets Under
Construction
£
1,188,547
395,302
362,052
-
-
1,945,901
-
-
-
-
-
1,188,547
1,945,901		 TOTAL
£
10,786,020
395,302
368,036
-
(64,397)
11,484,961
312,666
23,950
(64,397)
(40,447)
272,219
10,473,354
11,212,742		 Current Assets
To be sold
£
540,000
-
-
-
(540,000)
-
540,000
-

All fixed assets are held for direct charitable use.

The College had received a legacy receipt of a residential property that had a value of £540,000 which was sold with proceeds of £130,000.

The properties of the college beyond the main site were revalued by Kempton Carr Croft and are now held at market value as at March 2022.

The property of Arodene Road which has been under construction has been valued as at 31/07/2023 at £420,000; the revaluation takes the holding value to this.

The net book value at 31st Jul 2023 represents fixed assets used for charitable purposes. Previously fully depreciated equipment has been disposed in the year under review.

Assets under construction represent costs incurred in the development of the College campus that will be used for a mixture of Charitable and Non-Charitable purposes.

Page 32

SPURGEON'S COLLEGE

N 6

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2023 (continued)

9 INVESTMENTS

a) Fixed interest and equity-based Investments

At Valuation
At 1st August 2022
Purchases
Disposals
Gains/(Losses)
At 31st July 2023
Represented by –
Fixed interest securities
Equities
Investment & unit trusts
Value of Investments at Market Value
Securities at Historical Cost
At 1st August 2022
At 31st July 2023		 General
General
Pringle
Vectis
Copley
Cudlip
Total
Fund
Bursary Fund
Fund
Fund
Fund
Fund
£
£
£
£
£
£
£
99,354
126,063
50,613
189,688
40,768
27,559
534,045
23,438
33,720
13,538
50,740
10,905
-
132,341
(26,525)
(38,163)
(15,322)
(57,424)
(12,341)
-
(149,775)
(2,866)
(3,277)
(1,316)
(4,931)
(1,060)
(1,383)
(14,833)
93,401
118,343
47,513
178,073
38,272
26,176
501,778
14,158
20,370
8,178
30,650
6,587
-
79,943
17,320
24,919
10,005
37,496
8,059
-
97,799
61,922
73,055
29,331
109,927
23,625
26,176
324,036
93,400
118,344
47,514
178,073
38,271
26,176
501,778
84,514
105,980
42,550
159,469
34,273
28,628
455,414
85,949
108,045
43,379
162,576
34,941
28,628
463,518

All these investments are listed on a recognised Stock Exchange or are ones valued by reference to such investments, such as unit trusts and common investment funds.

5% (£26,554) of the portfolio investments are held in CG Absolute Return Fund Class M Shares.

10
DEBTORS
Amounts falling due within one year
Trade debtors
Gift Aid receivable
Prepayments
Sundry debtors		 2023
2022
£
£
145,670
173,683
11,078
6,213
924,268
127,293
28,768
4,420
1,109,784
311,609

Page 33

SPURGEON'S COLLEGE

N 7

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2023 (continued)

11 CREDITORS
2023 2022
£ £
a. Amounts falling due within one year
Loans 339,362 344,516
Other Creditors & Accruals 232,964 250,202
Taxation and Social Security 22,348 22,787
Fees received in advance 54,631 48,205
649,305 665,710
b. Amounts falling due after one year
Loans 5,378,945 2,657,583
There are three interest-bearing loans Type Duration left Rate Amount o/s
Against 191 South Norwood Hill Repayment 10 years BoE base rate + 3.00% 335,321(BUC)
Against 76 South Norwood Hill Interest 10 months BoE base rate + 7.00% 332,986(BUC)
Against 189 South Norwood Hill Interest 1 year BoE base rate + 10.75% 5,050,000
Loans falling due within 1 year: 339,362
Loans falling due after 1 year: 5,378,945
Total: 5,718,307 5,718,307
See note 18 for additional information in relation to these loans.
12 TRANSFERS BETWEEN FUNDS
There have been no transfers this year
13 RESTRICTED FUNDS
Fund Balance Income Expenditure Transfers Fund Balance
1st August 31st July
2022 2023
£ £ £ £ £
Frank Fitzsimmonds Bursary Fund 8,200 - (1,600) - 6,600
Baptist Union Bursary Fund 47,898 53,601 (96,314) - 5,185
General Bursary - Income 17,512 3,727 - - 21,239
Pringle Bursary - Income 3,497 1,797 (3,382) - 1,912
Vectis Fund - Income 9,348 5,609 (4,000) - 10,957
Copley Fund - Income - 1,205 - - 1,205
Lamplighters Bursary 13,195 2,930 (4,082) - 12,043
Conference Communion 175 - - - 175
Nott Fund 652,859 1,632 (1,244) - 653,247
Restricted Gifts 10,226 1,384 (650) - 10,960
Oversea Student 600 - - - 600
Learning Support 474 220 - - 694
Pioneer Project 20,744 - - - 20,744
Principal's fund 4,745 3,835 (6,167) - 2,413
Student Rep 1,916 - - - 1,916
Theology of Law Course 799 2,000 (2,000) - 799
OfS Hardship Funding - 378 (378) - -
Fund Raiser 30,000 - - - 30,000
822,188 78,318 (119,817) - 780,689

Page 34

SPURGEON'S COLLEGE

N 8

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2023 (continued)

Movements in comparative period

Fund Balance
Income
1st August
2021
£
£
Frank Fitzsimmonds Bursary Fund
15,400
-
Baptist Union Bursary Fund
31,023
50,900
General Bursary - Income
13,589
3,923
Pringle Bursary - Income
7,747
1,750
Vectis Fund - Income
18,915
5,433
Copley Fund - Income
3,907
1,168
Lamplighters Bursary
14,917
2,278
Conference Communion
174
1
Nott Fund
412,472
240,632
Restricted Gifts
12,227
1,206
Oversea Student
600
-
Learning Support
94
380
Pioneer Project
20,744
-
Principal's fund
1,059
5,341
Student Rep
2,117
-
EBA Hardship fund
600
-
Theology of Law Course
1,599
-
The Rev Dr Curdell McLeod Bursary
-
1,250
Fund Raiser
-
30,000
557,184
344,262		 Expenditure
£
(7,200)
(34,025)
-
(6,000)
(15,000)
(5,100)
(4,000)
-
(245)
(3,207)
-
-
-
(1,655)
(201)
(600)
(800)
(1,250)
-
(79,283)		 Transfers
Fund Balance
31st July
2022
£
£
-
8,200
-
47,898
-
17,512
-
3,497
-
9,348
25
-
-
13,195
-
175
-
652,859
-
10,226
-
600
-
474
-
20,744
-
4,745
-
1,916
-
-
-
799
-
-
-
30,000
25
822,188

Frank Fitzsimmonds Bursary Fund - A bequest given to assist deserving undergraduate students with their course fees whilst in full time training at Spurgeon's College for the Baptist Ministry.

Baptist Union Bursary Fund - This fund is from "Baptists Together" and is to help Baptist Union Ministers in Training with their fees and/or living costs.

Income Funds (General Bursary, Pringle Bursary, Vectis Fund, Copley Fund) - Income derived from the investments held in these Funds (see note 14) is applied to provide assistance with students' fees and charges, or in the case of the Cudlip Legacy, for general College purposes.

Lamplighters Fund - To receive donations from ‘Lamplighters’ and others who wish to provide direct assistance to students who are unable to pay full fees.

Conference Communion Fund - A pastoral fund, administered by the Principal, established by past and present students of the College for the benefit of colleagues experiencing personal financial difficulties.

Nott Fund - In 1976 Miss Dorothy Nott made a bequest to the College of the residue of her estate for the purpose of helping retired ministers and missionaries who were former students of the College. A property in Beckenham, 7 Glanfield Road, valued at £625,000, is held for the benefit of retired members of the College.

Restricted Gift Fund - This includes gifts towards specific projects.

Oversea Student - This fund was established to provide assistance to overseas students.

Learning Support - A fund established to assist students with additional support needs in their studies.

Pioneer Fund - Grant received from BU Newington Court for the writing of a pioneer pathway for ministerial training.

Principal's Fund - This includes gifts specifically for use at the Principal's discretion.

Student Rep - A fund established to be used by the student representatives.

EBA Hardship fund – This fund is for Baptist Union Ministers in Training on placement in the Eastern Baptist Association.

Theology of Law Course – This fund is to help with the fees of students studying on the theology of law unit.

The Rev Dr Curdell McLeod Bursary – This bursary is given to students of Caribbean heritage who are training for ministry.

OfS Hardship Funding – This fund was received from the Office for Students to help students who were struggling financially.

Fund Raiser – This fund was received for use in employing a fund raiser.

Page 35

N 9

SPURGEON'S COLLEGE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2023 (continued)

14 ENDOWMENT FUNDS

Fund Balance 1st
August 2022
£
General Bursary
130,420
Pringle Bursary
52,362
Vectis Fund
196,244
Copley Fund
42,177
Cudlip Legacy
27,559
448,762
Movements in comparative period
Fund Balance 1st
August 2021
£
General Bursary
134,332
Pringle Bursary
53,934
Vectis Fund
202,132
Copley Fund
43,442
Cudlip Legacy
28,062
461,902		 Transfer (to)/from
General Fund
£
-
-
-
-
-
-
Transfer (to)/from
General Fund
£
-
-
-
-
-
-		 Investment
Management
Charges
£
(1,790)
(718)
(2,693)
(579)
-
(5,780)
Investment
Management
Charges
£
(1,935)
(777)
(2,913)
(626)
-
(6,251)		 Investment
Gains/(Losses)
Fund Balance
31st July 2023
£
£
(3,277)
125,353
(1,316)
50,328
(4,931)
188,620
(1,060)
40,538
(1,383)
26,176
(11,967)
431,015
Investment
Gains/(Losses)
Fund Balance
31st July 2022
£
£
(1,977)
130,420
(795)
52,362
(2,975)
196,244
(639)
42,177
(503)
27,559
(6,889)
448,762

The income earned on the first four of these endowments is recorded in the related restricted funds (see note 13). The income on the Cudlip legacy is credited to the General Fund, which is a correction of the previous accounting, as stated in note 12 on transfers between funds.

General Bursary Fund - Income derived from the investments held in this Fund is applied to provide assistance with students' fees and charges.

g y y g p for a pastoral studies student not otherwise receiving any financial assistance from public funds. Preference is to be given to a student normally resident in the area of the former Lancashire & Cheshire Baptist Association (now the North Western Baptist Association).

g

The Vectis Fund - This fund is an endowment established in 2003 and added to in 2011 to provide assistance to either:-

The Copley Fund - This fund was set up in 2003 by a bequest under the will of Edith Copley in memory of her parents John and Sarah Ann Copley. The object of the bequest was to provide assistance to any persons, with preference given to those from Yorkshire, who wish to study at Spurgeon's College with a view to entering the Baptist ministry, whom the governing body considers would be unable to do so without such assistance.

The Cudlip Legacy - A bequest from the estate of Miss Edith Mary Cudlip who died in March 2008. Under the terms of her will Miss Cudlip left the College a one thirteenth share of the residual estate with the proviso that the amount realised should be invested and the interest received should be used as a donation.

15 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Investments
Cash at bank and in hand
Other net Current Assets
Long term creditor		 General
£
10,587,742
93,401
342,251
460,479
(5,378,945)
6,104,928		 Restricted
£
625,000
-
155,689
-
-
780,689		 Endowment
Total 2023
£
£
-
11,212,742
408,377
501,778
22,638
520,578
-
460,479
-
(5,378,945)
431,015
7,316,632

Page 36

SPURGEON'S COLLEGE

N 10

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2023 (continued)

16 STAFF COSTS OF PERMANENT EMPLOYEES

Salaries
National Insurance costs
Pension costs: Scottish Life - 12 (12) members
Baptist Pension Scheme - 22 (23) members		 2023
2022
£
£
1,062,253
1,025,122
96,717
93,235
36,202
36,144
57,360
59,892
1,252,532
1,214,393

The average weekly number of employees during the year, calculated on a full-time equivalent basis, was 32 (2022:33). The Average head count was 51 (2022:52). No employee received remuneration of more than £60,000 in the current or prior year.

The salary and employer’s national insurance contributions paid during the year in respect of the College Principal (who is also a Governor of the college), in respect of his teaching and administrative duties, as authorised by the Articles of Association, amounted to £51,242 (2022: £50,127).

The College also made pension contributions of £4,500 (2022: £4,500) for the College Principal, along with non-taxable benefits of £36,000 (2022: £30,000) and a proprotional bonus (given to all staff) of £1,000 (2022: £0).

The median basic remuneration for the year was £25,777 (2022: £24,324); the Principal's basic remuneration was 1.7 (2022: 1.9) times this. The median total remuneration pay for the year was £31,507 (2022: £26,902); the Principal's total remuneration was 2.9 (2022: 3.0) times this.

The cost of employment of key management staff which includes Salary, proportional bonuses, Pension Contributions and employer NI contributions amounted to £152,909 (2022: £177,012). The key management staff include Vice Principal (Academic Director), Vice Principal (Director of Ministerial Formation) and the Chief Operating Officer.

During the year to 31st July 2023, the College made pension contributions in respect of 12 members of staff (2022: 12) into a defined contribution pension scheme where the assets are held separately from those of the Charity in independently administered funds.

The College also participates, on behalf of another 22 (2022: 23) members of staff, as an employer in the Baptist Pension Scheme ("the Scheme"), which is administered by the Pension Trustee (Baptist Pension Trust Limited). The scheme is a separate legal entity and the assets of the scheme are held seperately from those of the Employer and the other participating employers.

For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at that time.

The Scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficiency contributions (see below).

The Ministers and members of the staff are eligible to join the Scheme.

Since January 2012, pension provision has been made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Legal and General Life Assurance Society Limited. In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members in the event that they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva. [Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.]

Benefits in respect of service prior to 1st January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre-2012 service were a defined benefit pension of one eightieth of Final Minimum Pensionable Income for each year of Pensionable Service, together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31st December 2011.

Page 37

SPURGEON'S COLLEGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2023 (continued)

N 11

16 STAFF COSTS OF PERMANENT EMPLOYEES (continued)

Actuarial Valuation and Deficit recovery

A formal valuation of the DB Plan as at 31 December 2019 was carried out by a professionally qualified Actuary using the Projected Unit Method. At the valuation date the market value of the DB Plan assets was £298 million, whilst the level of assets needed to pay benefits was £316m, giving a deficit of £18m (equivalent to a past service funding level of 94%). The Church and the other participating employers in the DB Plan are collectively responsible for funding this deficit.

The key financial assumptions underlying the valuation were as follows

Type of assumption % p.a.
RPI price inflation assumption 3.20
CPI price inflation assumption 2.70
Minimum Pensionable Income Increase Adjustment (above CPI) 0.50
Pre-retirement assumed investment returns (gilt yield plus 1.75% pa)
Post retirement assumed investment returns (including benefits matched by the 1.70
insurance policy) (gilt yield plus 0.5% pa)
Minimum Pensionable Income increases (CPI plus 0.5%) 3.20
Deferred pension increases (based on RPI)
Pre April 2009 3.20
Post April 2009 2.50
Pension increases
Based on CPI with an annual floor of 0% and annual cap of 5% 2.70

Mortality is assumed in accordance with 80% of the S3NA standard mortality table. Future improvements projected from 2013 in line with the “CMI 2019” projection with a long-term rate of improvement of 1.75% p.a. for males and 1.5% p.a. for femaleswith the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.

The next actuarial valuation of the DB Plan within the Scheme will commence in 2023 to reflect the position as at 31 December 2022.

Recovery Plan

In addition to the contributions to the DC Plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan. Following the 2019 valuation a Recovery Plan was signed in September 2020 under which deficiency contributions are payable until June 2026. These contributions were broadly based on each employer's membership at 31 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules.

At the end of June 2022 the Baptist Pension Scheme signed an agreement with the insurance company Just Group (‘Just’) to secure members’ pension benefits under the Defined Benefit (‘DB’) Plan. As a result, the Scheme no longer has a shortfall. A revised statement of contributions was announced in July 2022 with deficit contributions from each participating employer in the DB Plan reducing to just £1 per month from August 2022.

Movement in Balance Sheet liability

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

Balance sheet liability at the start of the year
Minus deficiency contributions paid
Plus Interest cost
Actuarial (gains)/losses on re-measurement of liability
Balance sheet liability at the end of the period		 2023
2022
£
£
-
79,475
(12)
(15,198)
12
-
-
(64,277)
-
-

Page 38

SPURGEON'S COLLEGE

N 12

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2023 (continued)

16

The key financial assumptions underlying the valuation were as follows:

Accounting date 31/07/2023 **31/07/2022 ** 31/07/2021
Discount rate 6.2% 3.8% 1.6%
Future increases to Minimum Pensionable Income 0.0% 0.0% 3.2%

17 GOVERNORS’ REMUNERATION AND LOANS

Governors are not paid for their services as governors (except as regards the College Principal – see note 16 on the previous page). Reimbursements of £2,366 (2022: £728) were paid to four governors for directly incurred travel and other expenses. During the year none of the governors received a loan from the charity.

18 RELATED PARTY TRANSACTIONS

The College Principal is also a Baptist Union trustee. The College has two loans with the Baptist Union Corporation (see note 11). During the year two loans totalling £2,328,136 were repaid. The total amount outstanding as at 31st July 2023 was £668,307 (2022: £3,002,099). The College also received Baptist Union grant money for the year totalling £53,601 (2022: £76,384).

A staff member is also the modertor of the Baptist Union Corporation Council

During the year the charity made purchases of £1,171 (2022: £0) from the charity Book Aid of which a staff member is a trustee.

During the year donations totalling £1,080 (2022: £960) from the trustees were recevied by the charity.

A Govenor is also a student on courses with fees of £270.

19 STATUS OF THE COMPANY

The company is limited by guarantee. The number of members of the Council at the year end was 36 (2022: 36). In the event of a winding-up of the company, the maximum liability of each Council member is £10.

20 COMMITMENTS UNDER OPERATING LEASES

At 31st July 2023 the college was committed to making the following payments for operating leases:

Less than One Year
In two to five years
Greater than five years
Within:		 2023
2022
£
£
30,539
18,141
27,637
4,085
-
36
58,176
22,262

21 POST BALANCE SHEET EVENTS

Subsequent to the year end the College sold its Spurgeon hertiage collection to another educational institution for the purposes of research for £1.6 million.

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