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2021-08-31-accounts

DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

The Cambridge Theological Federation

Report and Financial Statements

31 August 2021

Registered Charity Number: 1099953 Company registration Number: 04700056

DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 August 2021.

REFERENCE AND ADMINSTRATIVE DETAILS

Registered charity name The Cambridge Theological Federation Charity registration number 1099953 Company registration number 4700056 Principal and registered office The Bounds Westminster College Lady Margaret Road Cambridge, CB3 0BJ

Trustees

Professor John Bell (Chair) Dr Andrew Cates Rev Dragos Herescu Resigned 21 July 2021 Rev Dr Alex Jensen Appointed 21 July 2021 Dr Cynthia Lumley Rev Dr Michael Volland

Company Secretary Alastair Oatey Auditors Chater Allan LLP Chartered Accountants & Statutory Auditors Beech House 4a Newmarket Road Cambridge CB5 8DT

Accountancy and payroll

Bidwells LLP Bidwell House Trumpington Road Cambridge CB2 9LD

Banker

Barclays PLC PO Box No2 Cambridge CB3 3PZ

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

INTRODUCTION

The Cambridge Theological Federation, formed in 1972, is an ecumenical collaboration between twelve colleges and institutions who teach theology in Cambridge. The member institutions together fund the Federation and through it are able to offer their students access to degrees through Anglia Ruskin University, Durham University and the University of Cambridge.

The Federation is registered with the Office for Students which enables us to offer student loans and to be registered with the Home Office to sponsor Student visas. Registration with OfS brings a wide range of regulatory responsibilities including reporting to, and assessment by, the Quality Assurance Agency.

Students have a complex set of contractual arrangements. Most students are admitted through one of the member institutions and so are members of that House. They become students of the Federation as well as some being a student of the validating University. BTh students also matriculate with one of the Cambridge Colleges. There are some students who are directly admitted as Federation students and so only have contracts with the Federation and the relevant University.

The Federation employs a small central services team at its Bounds House office that provides administrative and information services support. The Federation appoints academic staff with relevant theological expertise to teach and supervise Federation students on our taught and research degrees. Most academic staff are members of one of the Federation Houses; others are retired or employed by another institution and are engaged to teach in their specialist areas. The Director of Professional Doctorate is an employee of Anglia Ruskin University, though primarily based with the Bounds House team. He teaches students taking the first year of the Professional Doctorate and supervises doctoral students.

More details about the Federation can be found at www.theofed.cam.ac.uk

Member Institutions

At its AGM in July 2021 the Federation was pleased to welcome the Kirby Laing Centre as an Associate Institution, bringing the number to eight Member Institutions and four Associate Institutions.

Member Institutions

Member Institutions appoint two individuals as Members and may present students for enrolment on validated courses. Associate Members appoint one individual as a Member but are not entitled to have students on degrees validated through the Federation.

Cambridge Centre for Christianity Worldwide Institute for Orthodox Christian Studies Orthodox Christian Margaret Beaufort Institute of Theology Roman Catholic Ridley Hall Church of England Wesley House Methodist Westcott House Church of England Westfield House Lutheran Westminster College United Reformed Church

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THE CAMBRIDGE THEOLOGICAL FEDERATION TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Associate Institutions

Eastern Region Ministry Course Church of England The Faraday Trust The Kirby Laing Centre for Public Theology in Cambridge Woolf Institute

OBJECTIVES AND ACTIVITIES

The charity's objects are: to advance the Christian faith, to advance religious ecumenical education consistent with the doctrine and principles of the Christian faith, and to prepare men and women for ordained or lay ministry and service within the Christian churches.

The charity has adopted the following statement of purpose:

“Shaped by a common life of prayer and study, the Cambridge Theological Federation is an ecumenical collaboration of educational institutes engaged in the formation of Christian leaders. Individually and together we teach theology for ministry; reflect on the local and global, ecumenical and inter-faith context for Christian mission; foster encounter between people of different ecclesial and faith traditions; and undertake research in theology and religious studies.”

STATEMENT OF CORPORATE GOVERNANCE

The charity is constituted as a company limited by guarantee and is governed by its articles of association adopted on 22nd November 2018.

Under the 2018 Articles the company’s members are individuals appointed by the Federation’s Member Institutions and Associate Institutions. (The difference being that Associate Institutions do not have the right to present students for enrolment on courses accredited via the Federation.) Two individuals are appointed by each of the Member Institutions and one individual each from the Associate Member institutions.

The members appoint the company’s directors who govern the business of the Federation. The directors are also the charity’s trustees.

The diagram below represents the Federation’s corporate governance arrangements.

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

The Members

The Members have retained the functions listed below. All other functions are delegated to the Board.

The Members are responsible for the adequacy and effectiveness of corporate governance which they ensure through their Annual Meeting at which board minutes for the year are reviewed, reports from the Chair of the Board and Chief Operating Officer are discussed and these accounts, including this report, are reviewed.

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Director Selection Methods

Directors are selected through personal recommendation for their willingness to support and promote the vision of the Federation, and also for their expertise in areas key to the Federation's achieving its financial, legal and ecumenical objectives. Three of the directors are heads of member institutions and so ensure the members’ interests are represented on the board.

Responsibilities of the board of directors

The responsibilities of the board, as set out in the Federation’s Governance Manual, are listed below.

1. Authority

To act within the authority delegated in the Members’ Scheme of Delegation.

2. Governance and statutory obligations

3. Strategy and Liaison

4. Compliance and quality assurance

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THE CAMBRIDGE THEOLOGICAL FEDERATION TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

5. Bounds House staff

6. Acquiring knowledge and developing personally

Trustees' Responsibilities Statement

The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

Policies & procedures for induction and training of trustees

The Board is responsible for inducting new Trustees which is done through provision of relevant material from the Charity Commission about Charity Trustees' responsibilities and through access to previous board minutes and papers.

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Transparency about corporate governance arrangements

We ensure that our governance arrangement are transparent by publishing them in a Governance Manual which is given to all Members and Trustees and is available to all staff and students from our virtual learning environment/intranet. This report ensures the information is available in the public domain.

We promote transparency of our governance decisions through circulation of minutes of committees and through the inclusion of student representatives attending committee and board meetings.

Key management personnel

Alastair Oatey, Chief Operating Officer, was the key management person in the year to whom day to day responsibility was delegated for the Federation's effective management.

PUBLIC BENEFIT

The public benefit activities we have undertaken this year in relation to our purposes have included:

Out of necessity from the Covid-19 restrictions some of these activities were offered online instead of in person this year, including the communal acts of worship.

Details of further activities are discussed in the “achievements and performance” section below. The Trustees have paid due regard to the published guidance from the Charity Commission on the operation of the Public Benefit requirement under the Charities Act.

Contribution made by volunteers

There were no volunteers during this period.

Arrangements for setting pay & remuneration of key management personnel

The pay and remuneration of key management personnel is set by recommendation from the Resources Committee and agreed in each year's budgeting process.

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

ACHIEVEMENTS AND PERFORMANCE

The main achievement of the Federation remains teaching students. 323 students were taught on courses validated through the Federation in 2020/21, compared with 257 in 2019/20. In addition a number of students read for the BA in Theology and Religious Studies, PhD or MPhil by arrangements made directly between a member institution and the University of Cambridge.

135 (2019/20: 86) students studied for awards from Anglia Ruskin University 163 (2019/20: 137) students studied for awards from Durham University 25 (2019/20: 34) students studied for awards from the University of Cambridge

As for all Higher Education Institutions, all our teaching and assessment moved online when the COVID-19 lockdown took effect. Although it had a major impact on our member institutions, the pandemic had little or no effect on the Federation's performance in 2021.

Strategic Plan

The Members reviewed the 2017-2022 Strategic Plan in the July 2021 AGM and concluded that its objectives had been met. They considered the outstanding items to be either ongoing matters or to have been overtaken by events and so considered the Plan completed. A group of Members will review Strategy during 2021/22 for a new Strategic Plan to be agreed at the 2022 AGM.

Fundraising activities

There were no fundraising activities in the year.

FINANCIAL REVIEW

The Federation's funding model is based on the following principles:

  1. The central Federation (ie this company) will have a balanced budget each year.

  2. The core central costs are split amongst the Member Institutions in equal proportions, according to their membership category.

  3. The library costs are split amongst all Member Institutions, adjusted according to their relative level of demand on the service.

  4. The costs of running each of the degree programmes are borne in full by those Member Institutions wishing to offer those degrees, including the cost of purchasing and licensing electronic books and journals.

  5. The Member Institutions keep all of the student fee income after the university has taken its share.

This business model means that the Federation is operating a cost-sharing model and so the financial position will remain robust, subject to managing cashflow.

The Federation's total incoming resources from charitable activities for the year amounted to £901,593 (2020: £1,061,894).

The costs of charitable activities amounted to £939,985 (2020: £1,083,402) of which £660,422 (2020: £811,347) related to direct costs and £279,563 (2020: £272,054) related to support costs. This included Governance costs of £25,504 (2020: £21,175). Staff costs, including pension and social security costs, were £225,908 (2020: £227,657).

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

The Federation reported a deficit on restricted funds of £8,331 (2020: surplus of £4,620).

Net current assets at the end of the year amounted to £337,758 (2020: £330,772). Total funds were £1,800,387 (2020: £1,808,718) of which unrestricted funds amounted to £1,741,225 (2020: £1,741,225) and restricted funds amounted to £59,162 (2020: £67,493).

Reserves Policy

The policy of the Federation is to hold sufficient reserves to be able to meet its commitments to staff (including redundancy costs), students (including teach out costs) and suppliers in the event of the charity ceasing to operate. The Resources Committee has set a target reserves figure of £200,000. At 31 August 2021, free reserves were £278,595.

Principal sources of funds

The Federation does not generally undertake any fundraising and aims to be fully funded from contributions from its member institutions and a share of fee income from students taking the Professional Doctorate who are not affiliated to a member institution.

Going concern

The Federation’s funding model, taken with the reserves held, enable the charity trustees to consider that the Federation is a going concern and will remain so in the future as any operating deficit will be fully covered by the member institutions.

Statement of internal control

The board is responsible for the adequacy and effectiveness of risk management and oversight of statutory and other regulatory responsibilities including compliance with the Office for Students’ ongoing conditions of funding. It fulfils these responsibilities through receiving and discussing reports from the Chief Operating Officer at its regular Board meetings.

The board is the body responsible for ensuring that a sound system of internal control is maintained and it has reviewed the effectiveness of these arrangements.

The board principles of internal control applied by the board are:

The Federation's internal controls to prevent and detect corruption, fraud, bribery and other irregularities include:

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

The Federation does not receive public funding from the OfS, UK Research and Innovation, the Department for Education or the Education and Skills Funding Agency.

The Federation receives public funding from the Student Loan Company, which is passed in full to the Member Institution of the relevant student and is used for payment of their tuition fees.

During the year the board reviewed the risk register and risks that have been identified include staff retention, the safety of staff and students, the impact on the Federation if a member institution leaves, the impact of the loss of TEI status or registration with the Office for Students, and the loss of any of the agreements with the universities that validate our courses. Processes have been established to manage these risks.

No internal control weaknesses or failures arose in the year or have arisen up to the date of this report's signing.

PLANS FOR FUTURE PERIODS

The Federation will continue to offer degrees validated by our three partners, Anglia Ruskin University, Durham University and the University of Cambridge and continually strive to provide a high quality learning experience for our students.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.

The trustees' annual report was approved on 24[th] January 2022 and signed on behalf of the board of trustees by:

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Professor John Bell Chair of Trustees

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION INDEPENDENT AUDITORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

Opinion

We have audited the financial statements of The Cambridge Theological Federation (the charitable company) for the year ended 31 August 2021 which comprise the statement of financial activities (including income and expenditure account), the balance sheet, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 August 2021 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;

• have been prepared in accordance with the requirements of the Companies Act 2006.

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 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.

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.

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THE CAMBRIDGE THEOLOGICAL FEDERATION INDEPENDENT AUDITORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

Other information (continued)

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 of 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 matter 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 to required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

the financial statements are not in agreement with the accounting records and returns; or

Responsibilities of the trustees

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

In preparing the financial statements, the trustees are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION INDEPENDENT AUDITORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the annual financial statements from our general commercial and charitable company specific experience, through discussion with the trustes (as required by auditing standards), and from inspection of the charitable company's regulatory correspondence, and we discussed with the trustees the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indication to non-compliance throughout the audit; the audit team are deemed both competent and capable of identifying non-compliance with rules and regulations.

The potential effect of these laws and regulations on the annual financial statements varies considerably. Firstly, the charitable company is subject to laws and regulations that directly affect the annual financial statements including financial reporting legislation and taxation legislation, and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related annual account items. Secondly, the charitable company is subject to other laws and regulations where the consequences of noncompliance could have a material effect on the amounts or disclosures in the financial statements, for instance non-compliance with industry regulations. We assessed the risk of fraud in the financial statements through discussion with management and from our experience of the charitable company. We communicated identified fraud risk areas throughout our team and remained alert to any indication of fraud throughout the audit. In particular, we assessed the potential impact of the global pandemic known as Covid-19 on the risk of fraud. We did not identify any instances of fraud during the course of our audit.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and inspection of regulatory and legal correspondence, if any. Through these procedures, we did not become aware of any actual or suspected non-compliance with laws and regulations. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditorsresponsibilities-for-audit.aspx. This description forms part of our auditor’s report.

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION INDEPENDENT AUDITORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

Use of our report

This report is made solely to the trustees, 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 charitable company’s trustees 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 anyone other than the charitable company and the trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Stuart Graham Berriman (Senior Statutory Auditor) For and on behalf of Chater Allan LLP Chartered Accountants and Statutory Auditors Beech House 4a Newmarket Road Cambridge, CB5 8DT

Date: 26 January 2022

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION STATEMENT OF FINANCIAL ACTVITIES (incorporating the Income and Expenditure account) FOR THE YEAR ENDED 31 AUGUST 2021

Note
Income and endowments
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investment income
7
Total Income
Expenditure
Charitable activities
8
Total expenditure
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
2,000
901,593
27,645
416
931,654
931,654
931,654
-
-
-
1,741,225
1,741,225		 Restricted
Funds
£
-
-
-
-
-
8,331
8,331
(8,331)
-
(8,331)
67,493
59,162
2021		 Total
Funds
£
2,000
901,593
27,645
416
931,654
939,985
939,985
(8,331)
-
(8,331)
1,808,718
1,800,387		 2020
Total
Funds
£
-
1,061,894
25,355
773
1,088,022
1,083,402
1,083,402
4,620
-
4,620
1,804,098
1,808,718

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

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

REGISTERED NUMBER: 04700056

THE CAMBRIDGE THEOLOGICAL FEDERATION BALANCE SHEET AS AT 31 AUGUST 2021

Note 2021 2020
£ £
FIXED ASSETS
Tangible fixed assets 14 1,462,630 1,477,947
Total fixed assets 1,462,630 1,477,947
CURRENT ASSETS
Trade and other debtors 15 68,283 109,120
Cash at bank and in hand 316,649 423,453
384,932 532,573
CREDITORS: amounts falling due within one year 16 47,174 201,802
NET CURRENT ASSETS 337,758 330,772
TOTAL ASSETS LESS CURRENT LIABILITIES 1,800,387 1,808,718
NET ASSETS 1,800,387 1,808,718
RESERVES
Restricted Funds 18 59,162 67,493
Unrestricted Funds 1,741,225 1,741,225
TOTAL FUNDS 1,800,387 1,808,718

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

The financial statements were approved by the Board of Trustees and authorised for issue on 24th January 2022 and signed on its behalf by

………………………………….. DocuSigned by: [AS Be Professor John Bell Chair

…………………………………..

………………………………… Cay 88B24F62CADD489... Alastair Oatey

Chief Operating Officer and Accountable Officer

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021

Cash flows from operating activities
Net (expenditure)/income
Adjustments for:
Depreciation of tangible fixed assets
Other interest receivable and similar income
Changes in:
Trade and other debtors
Trade and other creditors
Net cash generated (used in)/by operating activities
Cash flows from investing activities
Interest received
Purchase of tangible assets
Net cash generated by/(used in) investing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(8,331)
15,317
(416)
40,837
(154,627)
(107,221)
416
-
416
(106,804)
423,453
316,649		 2020
£
4,620
16,333
(773)
(49,027)
144,895
116,048
773
-
773
116,821
306,632
423,453

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. GENERAL INFORMATION

The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is The Bounds, Westminster College, Lady Margaret Road, Cambridge, CB3 0BJ.

Income and Expenditure account

A statutory Income and Expenditure account is not included as the required information is presented in the Statement of Financial Activities.

The Cambridge Theological Federation meets the definition of a public benefit entity under FRS 102.

Under the 2018 Articles the company’s members are individuals appointed by the Federation’s Member Institutions and Associate Institutions.

2. STATEMENT OF COMPLIANCE

The financial statements have been prepared under the historical cost convention and in accordance with the 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 (FRS 102), the Charities Act 2011 and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on the historical cost basis.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered the potential impact on the company of the current global pandemic known as COVID-19. The main risk is the effect of COVID-19 on the finances of our member institutions which could affect their ability to meet their commitments to funding the Federation. However, we are not aware of any institutions who will not be able to meet their commitments fully in the next twelve months and so in the opinion of the directors there will be no material adverse effect on the company's ability to continue. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

3. ACCOUNTING POICIES (continued)

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Income

All income is included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

• income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.

Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

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THE CAMBRIDGE THEOLOGICAL FEDERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

3. ACCOUNTING POLICIES (continued)

Tangible Assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Long leasehold property - 125 years straight line Equipment - 25% reducing balance

Defined Benefit Plan

The company operates a defined benefit pension scheme for its employees. The assets of the scheme are held separately from those of the company. Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

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THE CAMBRIDGE THEOLOGICAL FEDERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

4. DONATIONS AND LEGACIES

Unrestricted
Funds
£
Donations
-
Grants
2,000
2,000
NCOME FROM CHARITABLE ACTIVITIES
Unrestricted
Funds
£
Theological education and training
901,593
901,593
OTHER TRADING ACTIVITIES
Unrestricted
Funds
£
Letting
27,645
27,645
NVESTMENT INCOME
Unrestricted
Funds
£
Bank interest
416
416
XPENDITURE ON CHARITABLE ACTIVITIES BY ACTIVITY TYPE
Activities
undertaken
directly
2021
£
Theological education and training
660,422
660,422		 Restricted
Funds
£
-
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
Restricted
Funds
£
-
-
Support
Costs
2021
£
279,563
279,563		 Total Funds
2021
£
-
2,000
2,000
Total Funds
2021
£
901,593
901,593
Total Funds
2021
£
27,645
27,645
Total Funds
2021
£
416
416
Total
2021
£
939,985
939,985		 Total Funds
2020
£
-
-
-
Total Funds
2020
£
1,061,894
1,061,894
Total Funds
2020
£
25,355
25,355
Total Funds
2020
£
773
773
Total
2020
£
1,083,402
1,083,402

5. INCOME FROM CHARITABLE ACTIVITIES

6. OTHER TRADING ACTIVITIES

7. INVESTMENT INCOME

8. EXPENDITURE ON CHARITABLE ACTIVITIES BY ACTIVITY TYPE

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THE CAMBRIDGE THEOLOGICAL FEDERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

9. ANALYSIS OF SUPPORT COSTS

Staff costs
Premises
General office
Governance costs		 Total
Total
2021
2020
£
£
225,908
227,657
19,660
17,415
8,492
5,807
25,504
21,175
279,563
272,054

10. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting)
Depreciation of tangible fixed assets
11. AUDITORS REMUNERATION
Fees payable for the audit of the financial statements		 2021
£
15,317
2021
£
5,580		 2020
£
16,333
2020
£
5,400

12. STAFF COSTS

The total staff costs and employee benefits for directly employed staff for the reporting period are analysed as follows:

Wages and salaries
Social security costs
Employer contributions to pension plans		 2021
2020
£
£
191,322
193,054
16,253
15,741
18,333
18,862
225,908
227,657

The average head count of employees during the year was 10 (2020: 9)

No employee received employee benefits of more than £60,000 during the year (2020: £nil)

Key management personnel

Key management personnel includes all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total remuneration paid to key management personnel for services provided to the charity was £nil (2020: £nil)

Senior staff pay

The accounts direction from the Office for Students requires disclosures about the number of staff with a full-time equivalent basic salary of over £100,000 per annum and full details of the total remuneration package for the head of provider.

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THE CAMBRIDGE THEOLOGICAL FEDERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

12. STAFF COSTS (continued)

The head of the provider, the Chief Operating Officer, is provided on secondment from one of the member institutions, Wesley House and is not remunerated by the Cambridge Theological Federation. During this period Wesley House was recompensed £13,464 for the secondment.

13. TRUSTEE REMUNERATION AND EXPENSES

The Trustees received no remuneration (2020: £nil) during the year. During the period Trustees received reimbursement of travel expenses of £nil (2020:£nil).

14. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Cost
As at 1 September 2020
Additions
As at 31 August 2021
Depreciation
As at 1 September 2020
Charge for the year
As at 31 August 2021
Net book value
As at 31 August 2021
As at 31 August 2020		 Long
Leasehold
Property
£
1,518,943
-
1,518,943
53,658
12,152
65,810
1,453,134
1,465,285		 Equipment
£
69,559
-
69,559
56,897
3,165
60,063
9,496
12,662		 Totals
£
1,588,502
-
1,588,502
110,556
15,317
125,873
1,462,630
1,477,947

Long leasehold property includes £935,000 paid to Westminster College. This is in respect of a lease of the Bounds which commenced October 2015 and runs for 125 years. The lease premium is being depreciated over 125 years.

15. DEBTORS
Trade debtors
Other debtors
16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
Other creditors
Deferred income:
As at 1 September 2020
Deferred income recognised in the year
Resources deferred during the year
As at 31 August 2021
Deferred income represents income received in advance.		 2021
£
18,314
49,969
68,283
2021
£
7,406
4,009
35,759
47,174
7,207
(7,207)
1,345
1,345		 2020
£
14,932
94,188
109,120
2020
£
100,269
3,560
97,972
201,802
-
-
7,207
7,207

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

17. PENSIONS AND OTHER POST RETIREMENT BENEFITS

The Cambridge Theological Federation participates in the Pension Builder Scheme section of the Church Workers Pension Fund for lay staff. The Scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Employer and the other participating employers.

The Church Workers Pension Fund has a section known as the Defined Benefits Scheme, a deferred annuity section known as Pension Builder Classic and a cash balance section known as Pension Builder 2014.

Pension Builder Scheme

The Pension Builder Scheme of the Church Workers Pension Fund is made up of two pensions, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit schemes.

Pension Builder Classic provides a pension for members for payment from retirement, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be declared, depending upon the investment returns and other factors.

Pension Builder 2014 is a cash scheme that provides a lump sum that members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. This account may have bonuses added by the Board before retirement. The bonuses depend on investment experience and other factors. There is no requirement for the Board to grant any bonuses. The account, plus any bonuses declared, is payable from members' Normal Pension Age.

There is no sub-division of assets between employers in each section of the Pension Builder Scheme.

The scheme is a multi-employer scheme as described in Section 28 of FRS 102 as it is not possible to attribute the Pension Builders 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 of £18,333 (2020: £18,862).

A valuation of the scheme is carried out once every three years. The most recent scheme valuation completed was carried out as at 31 December 2019.

For the Pension Builder Classic section, the valuation revealed a deficit of £14.2m on the ongoing assumptions used. At the most recent annual review, the Board chose not to grant a discretionary increase, which will have acted to improve the funding position and do not expect to add one until at least 2025.There is no requirement for deficit payments at the current time.

For the Pension Builder 2014 section, the valuation revealed a surplus of £1.8m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.

The legal structure of the scheme is such that if another employer fails, Cambridge Theological Federation could become responsible for paying a share of that employer’s pension liabilities.

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THE CAMBRIDGE THEOLOGICAL FEDERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

18. ANALYSIS OF RESTRICTED FUNDS

ANALYSIS OF RESTRICTED FUNDS
Maurice and Hilda Laing Trust grant At 1
September
2020
£
67,493		 Income
£
-		 Expenditure
£
8,331
8,331		 At 31
August
Transfers
2021
£
£
-
59,162
-
59,162
67,493 -

Maurice and Hilda Laing Trust grant

During the year £8,331 was spent as the Federation's contribution to the development of a new database in partnership with Trinity College, Bristol and St Mellitus College.

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Net Current assets
Net assets		 Unrestricted
Funds
£
1,462,630
278,595
1,741,225		 Restricted
Total
Funds
Funds
£
£
-
1,462,630
59,162
337,758
59,162
1,800,387

20. ANALYSIS OF GRANT INCOME

Grant income from the OfS
Grant income from other bodies
Fee income for taught awards (exclusive of VAT)
Fee income for research awards (exclusive of VAT)
Fee income from non-qualifying courses (exclusive of VAT)
Total grant and fee income		 2021
2020
£
£
-
-
-
-
263,257
418,159
283,590
251,768
-
-
546,847
669,927

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DocuSign Envelope ID: 5D767202-F44B-4244-AC14-258817E7B92D

THE CAMBRIDGE THEOLOGICAL FEDERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

21. LEASING AGREEMENTS

The total future minimum lease payments under non-cancellable operating leases are as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
£823 lease payments were expensed in the year.		 2021
£
733
2,201
2,934		 2020
£
733
2,934
3,667

22. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

Income and endowments
Donations and legacies
Charitable activities
Other trading activities
Investment income
Total income
Expenditure
Charitable activities
Total expenditure
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
-
1,061,894
25,355
773		 Restricted
Funds
£
-
-
-
-
-
(4,620)
(4,620)
4,620
-
4,620
62,873
67,493
2020		 Total
Funds
£
-
1,061,894
25,355
773
1,088,022 1,088,022
1,088,022 1,083,402
1,088,022 1,083,402
- 4,620
-
-
1,741,225
1,741,225		 -
4,620
1,804,098
1,808,718

23. RELATED PARTY TRANSACTIONS

Member Institutions and associate institutions paid membership fees of £314,609 in the year.

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