CAMBRIDGE THEOLOGICAL FEDERATION The Cambridge Theological Federation Report and Financial Statements 31 August 2022 Registered Charity Number: 1099953 Company registration Number.. 04700056
THE CAMBRIDGE THEOLOGICAL FEDERATION INDEX FOR THE YEAR ENDED 31 AUGusf2022 Contents Page Trustees, annual report 3-12 Independent auditor's report 13-16 Statement of financial actlvlties 17 Balance Sheet 18 Statement of cash flows 19 Notes to the financial statement5 20-28
THE CAMBRIDGETHEOLOGICAL FEDERATION TRUSTEES, ANNUAL REPORT Ilncorporating the Directors, Report) FOR THE YEAR ENDED 31 AUGUST 2022 The trustees, who are also the director5 for the purposes of company law, present their report and the financial statemen15 of the charity for the year ended 31 August 2022. REFERENCE AND ADMINSTRATIVE DETAILS Registered charity name Charity registration number Company registration number Principal and reBiStered office The Cambridge Theological Federation 1099953 47(IIX)56 The Bounds Westminster College Lady Margaret Road Cambridge. CB3 OBJ Trustees Professor John Bell (Chairl Dr Andrew Cates Rev Helen Dawes Resigned 27th July 2022 Rev Dr Alex Jensen Dr Cynthia Lumley Mr lan Strachan Rvd Dr Muthuraj Swarmy Rev Dr Michael Volland Resigned 27, July 2022 Company Secretary Alastair Oatey to 31" July 2022 Andrew Chamberlain from I" Au8USt 2022 Auditors Chater Allan LLP Chartered Accountants & Statutory Auditors 7 Quycourt Collier5 Lane Stow-cum-Quv C825 9AU Accountancy and payroll Bidwells LLP Bidwell House Trumpington Road Cambridge C82 9LD Banker Barclays PLC PO Box No2 Cambridge C83 3PZ
THE CAMBRIDGE THEOLOGICAL FEDERATION TRUSTEES, ANNUAL REPORT Ilncorporating the Directors. Report) FOR THE YEAR ENDED 31 AUGusf 2022 INTRoDU10N The Cambridge Theological Federation. formed in 1972, is an ecumenical collaboration between twelve colleges and institutions who teach theology in Cambridge. The member institutlons 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 enable5 the Federation 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 a150 matriculate with one of the Cambridge Colleges. There are some students who are direttly admitted as Federation Students and so only have contracts Wtth the Federation and the relevant Ljniversity. The Federation employs a Small central services tearn at its Bounds House office that provides administrative and information services sUPPOrt. The Federation appoints academic staff with relevant theoloEical expertise to teach and supervise Federation students on taught and research degrees. Most academic staff are member5 of one of the Federation Houses: other5 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 Profession31 Doctorate and supeNises dortoral students. More delails 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, bringlng the number to eight Member Institutions and four Associate Institutions. Member Instltutions Member Institution5 appoint two individuals as Members and may present students for enrolment on validated course5. Associate Members èppoint one individuèl a5 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 Margaret Beaufort Institute of Theologv Ridley Hall Wesley House Westcott House Westfield House Westminster College Orthodox Christian Roman Catholic Church of England Methodist Church of England Lutheran United Reformed Church
THE CAMBRIDGETHEOLOGICAL FEDERATION TRUSTEES, ANNUAL REPORT Ilncorporatin8 the Dlrectors. Report) FOR THE YEAR ENDED 31 AUGUST 2022 Associate Institutions Eastern Region Ministry Course The Faratlay Trust The Kirby Lain@ Centre for Public Theology in Cambridge Woolf Institute Church of England OBJECTIVES AND A1VITIEs The charity's objects are.. to advance the Christian faith, to advance religiou5 ecumenical education consistent with the doLlrine and principles of the Christian faith. and to prepare men and women for ordained or lay ministry and service within the Christian thurches. The charity has adtspted 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 lotal and global, ecumenical and inter-faith context for Christian mis5ion- foster encounter between people of different ecclesial and faith traditlOn5,' and undertake research in theology and religious studies. STATEMENTOF CORPORATE GOVERNANCE The charity is constituted a5 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 membefs are individua15 appointed by the Federation's Member Institution5 and Associate Institutions. (The difference being that Associate InstitLJtions do not have the right to present students for enrolment on course5 atcredited via the Fedeiation.) Two individuals are appoinled 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 director5 are also the charity's trustees. The diagram below represents the Federation's corporate governance arrangements.
THE CAMBRIDGETHEOLOGICAL FEDERATION TRUSTEES, ANNUAL REPORT Ilncorporating the Directors, Reportl FOR THE YEAR ENDED 31 AUGUST2022 Members Meeting (Members) Management Commlitee Board (Directors. Trusteesl Resources Committee ARU overslght 8TOUP Cambridge oversight group Durham oversight Broup MA working group Bounds House staff team ExaTn board Plaa13fi5Tn & Ethi anels Academic Staff te3m Mernber5hip agreement Partnership agreements Member Institution5 Associate Institutions Anglia Ruskln University Durham Unlversity University of Cambridge The Members The Members have retained the functions listed below. All other functlons are delegated to the Board. Set the Federation's strategic direction, including determining its educational character and mission Amend the Articles Appoint the President who will chair meetings of the members Amend rules for General Meetings of the members Appoint and remove the Directors Appoint and remove the Chair of the Board and the Company Secretary. Set the basis of fees for Institution and Associate Membe Appoint audFtors Receive the annual report and accounts Approve the budget Approve the Scheme of Delegation Any other matter Specifically requiring members, approval under the Companies Act. The Members are responsible for the adequacy and effectivene55 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.
THE CAMBRIDGE THEOLOGICAL FEDERATION TRUSTEES, ANNUAL REPORT Ilncorporatin8 the Directors, Report) FOR THE YEAR ENOED 31 AUGUST 2022 Dirertor Selection Methods Directors are selected through personal recommendation for their willingne55 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 dirertors The responsibilities of the board, as set out in the Federation'5 Governance Manual, are listed below. l. Authority To act within the authority delegated in the Members. Scheme of Delegation. 2. Governan¢e and statutory obligations To ensure that the Federation conforrns to current Company Law and Charity Law in the management and conduct of its affairs. b. To ensure that Annual Returns, Annual Reports and Annual Accounts are prepared, audited, approved and filed in good time. c. To ensure risk is assessed and mitigated. d. To ensLJre that the Federation is financially viable, with a clear budget and financial monitoring. e. To ensure the Federat40n has clear policies and procedures in all areas required for good governance and to ensu their effectiveness. f. To ensvre the Federation has clear operational policies and procedures for Health and Safety and ensure their effertiveness. 3. Strategy and Liaison To develop and ensure the implementation of a viable business plan based on the strategic direction given by the Members and report on its progress against objectives. b. To ensure that the Federation is efficiently and effectively managed with clear management procedures and monitoring of overall performance. c. To ensure that there is good liaison acr055 all areas of the Federation, providing an annual report to Members, as well as making its minutes (except confidential items) available to Members. Bound5 House staff, other staff of College Member bodies and students. d. To be ambassadors for the Federation. developing good relationships wilh all institutions. 4. Compliance and quality assurance To ensure there are appropriate Systems in place to meet a15 compliance issues relating to being an Alternatlve Educational Provider, including interaction with O and other external bodies.
THE CAMBRIDGETHEOLOGICAL FEDERATION TRUSTEES, ANNUAL REPORT Ilncorporating the Dirertors, Report) FOR THE YEAR ENDED 31 AUGUST 2022 b. To oversee the Prevent programme and monitor Sts effectiveness across institutions. c. To monitor quality assurance and enhancement undertaken through the three University Oversight Gmups including responses to external examiners. external university committees, student feedback, suitable staff development. Sign off annual updating of quality assurance handbooks and Federation Teaching and Learning Strategy. 5. Bounds House staff To ensure that there are clear HR processes in place for the appointment, remuneration, appraisal, support and accountability of Bounds House staff. 6. Acquirin8 knowledge and developing personally To keep up to date about the Federation's work. To keep up to date about the external environment in which the Federation operates and read externally to acquire relevant knowledge. 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 require5 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.. select suitable accounting policies and then apply them consistently- observe the methods and principle5 in the applicable Charities SORP. make judgments and accounting estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the tharity will continue in business. 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 ¥espon5ible for safeguarding the assets of the charity and hence for taking reasonable steps forthe prevention an(1 detection of fraud and other irregularities. Auditor Each of the persons who is a trustee at the date of approval of this report confirm5 that.. so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware: and they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
THE CAMBRIDGETHEOLOGICAL FEDERATION TRUSTEES, ANNUAL REPORT Iln¢orporating the Directors, Reportl FOR THE YEAR ENDED 31 AUGUST 2022 Policies & procedures for induction and training of trustees The Board is responsible for inductlng new Trustees which is done through provision of relevant material from the Charity Commission about ChaYSty Trustees, responsibilities and through ac¢e5S to previou5 ljoard minutes and papers. 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 Tru5tee5 and is available to all staff anil students from our virtual learning environmentlintranet. This report ensures the information is available in the public domain. We promote transparenry 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 Up to 31" July 2022 Alastair Oatey, Chief Operating Officer, was the key management person in the year to whom day to day responsibillty was delegated for the Federation'5 effective managemet)t. From I" August 2022 Andrew Chamberlain, Head of Central Services, was the key management person with day to day responsibility delegated for the Federation's effective management. PUBLIC BENEFIT The public benefit activitie5 we have undertaken thi5 year in relation to our purposes have included: the provision of regular communal acts of WOTship to encourage and facilitate the practice of the Christian religion by those training for ministry and their families- supporting the theological colleges which are members of the Federation in raising awareness of religious prartices and beliefs,. providing education in accordance with the principle5 and practices of the Christian religion- providing opportunities through placements for students to engage in prison, hospital and school chaplaincy work,. providing training in pastoral and liturgical work, both within and beyond faith communities,. providing opportunities for continuing ministerial education for ministers through formal and informal educational programmes and through training offered for placement Supervisors. academit tutors and others.. providing, through our member institutions, seminars and lectures on current topics of interest to Christian faith for engaging in dialogue and research to explore and promote inter-faith understanding and cooperation. Deiails of further activities are discussed in the'achievernents and performance" section below. The Trustees have paid due regard to the published guldance 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.
THE CAMBRIDGE THEOLOGICAL FEDERATION TRUSTEES, ANNUAL REPORT Ilncorporating the Directors, Report) FOR THE YEAR ENDED 31 AUGUST 2022 ACHIEVEMENTS AND PERFORMANCE The main achievement of the Federation remains teaching student5. 332 5tudenls were taught on courses validated through the Federation in 2021122, compared with 323 in 2020121. 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. 150 students studied for awards from ARU Ipreviously"AnBlia Ruskin University") 157 students studied for awards from Durham Universitv 25 students studied for awards from the University of Cambridge Following the easing of COVID restrictions during the year under audit, teaching has moved back to in-person contact from online. Strategic Plan Following the successful completion of the last strategic review, members of the board set some short-term strategic goals for the year 2022123 and these have been recorded in the 2022123 Interim Strategic Plan. Activities forthe plan are now in progress and achievements are being Monitod. The board will meet to conduct a strategic review in February 2023 with the aim of crèating a multi-year plan to come into effert from 2023124. The plan will be presented at the next AGM. Fundraising activities The library department successfully raised £IOk from the Jerusalem TrLSSt to fund the purchase of boo from diverse voices in theology and specifically covering matters related to Equaltty, Diverslty, and Inclusion. FINANCIAL REVIEW The Federation's funding model is based on the following principles.. l. The central Federation lie this companyl 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 Institution5, adjusted according to their relative level of demand on the service. 4. The cost5 of running each of the degree programmes are borne in full by those Member Institutions wishing to offer those degree5, 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-5haring model and so the financial position will remain robust, subject to managing cashflow. The Federation's total incoming resources from charitable artivitie5 for the year amounted to £1,046,06712021= £901,593). The costs of charitable activitie5 amounted to £1,121,71812021.. £939,985) of which £845,95512021: £679,445) related to dÉrect costs and £275,76312021: £260,539) related to support costs. This io
THE CAMBRIDGE THEOLOGICAL FEDERATION TRUSTEES, ANNUAL REPORT Ilncorporating the Directors, Report) FOR THE YEAR ENDED 31 AUGUST2022 included Governance costs of £31,19212021.. £21,355). Staff costs, inclutling pension and social security C05t5, were £212.71412021.. £225,908). Net current assets at the end of the year amounted to £314,27912021.' £337,7581. Total fund5 were £1,762.382 of which unrestricted funds amounted to £1,699,96312021'. £1,741.2251 and restricted funds amounted to £62,41912021: 59,1621. ReseNes Policy The policy of the Federation is to hold sufficient reserves to be able to meet Its commitments to staff (including redundancy costs). students lincluding teach out costs) and suppliers in the event of the charity ceasing to operate. The Resources Committee has set a target resetves figure of £200,000. At 31 August 2022. free reserves were £251.860. Principal sources of funds The Federation does not generally undertake any fundraising and aim5 to be fully funded from contributions from its member institutions and a share of fee income from studeF)ts taking the Professional Doctorate who are not affiliated to a member institution. Going concern The Federation's funding model, taken with the resejves 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 institution5. Statement of internal Control The board is responsible for the adequacy and effectiveness of risk management and oversight of slatutory and other reEulatOry Te5ponsibilities 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 maintalned and it has reviewed the effectiveness of these arrangements. The principle5 of internal control applied by the board are.. al Identifying and managing risk is an ongoing process linked to achieving the Federation, objectives bl The approach to internal control is risk-based and includes an evaluation of th likel¥hood and impact of risks becoming a reality cl Review procedures cover busines5. operational and compliance risk as well as financial risk dl Risk assessment and internal controls are embedded in ongoing operations el The Board receive5 regular reports on internal control and risk. The Federation's internal controls to prevent and detect corruption, fraud, bribery and other irregularities include: Use of external accountants for bookkeeping, payments and management reporting The Head of Central Services approve5 all invoices before passing them for payment Monthly management accounts are circulated to the Federation's Resources Committee Management accounts are reviewed at each board meeting li
THE CAM8RIDGETHEOLOGICAL FEDERATION TRUSTEES, ANNUAL REPORT Iln¢orporating the Directors. Report) FOR THE YEAR ENDED 31 AUGUST2022 The board policy is that expenditure over £10,000 is counter-signed by the Chair or Treasurer, extept forthe distribution of university fees and student loan income to the member instilutions. The external audit, whilst not designed to manage these risks, provides the Board with further comfort that good procedures are in place and the figures presented give a true picture of the organisation's financial situation. 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 fLFII to the Member Institution of the relevant student and is used for payment of their tuition fees. During the year the board reviewed the rlsk register and rlsks that have been identified inclLtde staff retention, the safety of staff and students. the impact on the Federation if a member institution leave5. the impact of the loss of TEI status or registration with the OlCe for Students, and the loss of any of the agreements with the universities that validate our courses. Processes have bee established to manage these risks. No internal control weaknesses or failures arose in the year or have arisen up to the date of thi5 report's signing. PLANS FOR FUTURE PERIODS The Federation will continue to offer degrees validated by ourthree partners, Anglia Ruskin University, Durham University and the University of Cambridge and continually strive to provide high quality learnin8 experience for our students. Thi5 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 23rd January 2023 and signed on behalf of the board of trustees by- Professor John Bell Chair of Trustees 12
THE CAMBRIDGE THEOLOGICAL FEDERATION INDEPENDENT AUDITORS, REPORT FOR THE YEAR ENDED 31 AUGVST 2022 Opinion We have audited the financial statements of The Cambridge Theological Federation (the charitable company) for the year ended 31 August 2022 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 policie5. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standard5 (United Kingdom Generally Accepted Accountin8 Practice). In our opinion the financial 5tatemenls'. give a true and fair view of the state of the charitable company's affairs as at 31 August 2022 and of its incoming Yesource5 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 Acr 2006. Basis for opinion We conducted our audit in accordance with International Standards on AuditinE IUKI IISAS IUKII and applicable law. Our respon5ibilitie5 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 oijr opinion. Conclusions relating to going ¢on¢ern In auditing the financial statements, we have concluded that the trustees, use of the going concem bhsis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertaintie5 relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue a5 a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilitie5 and the responsibilities of the Irvstees with respect to going concern are describeil in the relevant sections of this report. Other information The other information comprises the informalion included in the annual report, other than the financial Slatements and our auditorfs report thereon. The trustees are responsible for the other inforrnation contained within the annual report. Our opinion on the financial statements does not cover the other inforrnation and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 13
THE CAMBRIDGE THEOLOGICAL FEDERATION INDEPENDENT AUDITORS, REPORT FOR THE YEAR ENDED 31AUGUST 2022 Other information Icontlnuedl 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 identtfy 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 mi55tatement of the other information. If, based on the work we have performed, we conclude that there is a material mi551atement of this Other information, we are required to report that fact. We have nothing to report in thi5 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.. the information given in the Tru5tees' report for the financial year for which the financial statements are prepared is consistent with the financial statement5,' and the Trustees, report has been prepared in accordance with applicable legal requlrements. Matters on which we are to required to report by exception In the light of our knowledge and understandlnE 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.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branche5 not visited by us; or the financial statements are not in agreement with the accounting records and returns,. or certain disclosures of trustee'5 remuneration specified by law are not made,. or we have not recelved all the information and explanation we require for our audit; or the trustees were not entitled to prepare the financial statements in accordance with the small companies, regime and take advantage of the small companie5, exemptions in preparing the trustees, report and from the requirement to prepare a strateBic report. 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 lawl are responsible for the preparation of the f inancial statement5 and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine 15 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 a55essing 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 operation5, or have no realistic alternative but to do $0. 14
THE CAMBRIDGE THEOLOGICAL FEDERATION INDEPENDENT AUDITORS. REPORT FOR THE YEAR ENDED 31 AUGUST 2022 Auditorfs responsibilities for the audit of the financial statements Our objective5 are to obtain reasonable assurance about whether the financial statements as a whole are free from materia5 misstalement, whether due to fraud or error, and to Issue an auditorfs 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 IUKI 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 decision5 of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with law5 and regulations. We design procedure5 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 15 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 las required by auditing standards), and from inspection of the charitable company'5 regulatory correspondence, and we discussed with the trustees the polbcies and procedure5 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 re8ulations. The potential effect of these laws and regulation5 on the annual financial statements varies considerably. Firstly, the charitable company is subject to law5 and regulations that directly affect the annual financial statements including financial reporting legislation and taxation legislation. and we assessed the extent of cornpliance 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 non- cornpliance 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 frauil 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 gltsbal pandemic known a5 Covid-19 on the risk of fraud. We did not identrfy any instances of fraud during the course of our audit. Auditin6 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 ihough we have properly planned and performed our audit in accordance with auditing Standards. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulatlons. A further description of our sponSIbl11t1eS for the audit of the financial statements is located on the Financial Reporting Council'5 website at.. https.'//www.frc.org.uk/Our-Work/Audit/Audit-and-assurancelStandards-and- 8uidance/St3ndards-and-guidance-for-auditois/Auditors-responsibilities-for-auditlDescription-of-auditors- respon5ibilities-for-audit.aspx. This description forms part of our auditor's report.
THE CAMBRIDGE THEOLOGICAL FEDERATION INDEPENDENT AUOITORS, REPORT FOR THE YEAR ENDED 31 AUGUST2022 Use of our report This report 15 made solely to the trustees, as a bodyi in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work ha5 been undertaken so that we might State to the charitable company's trustees those matters we are required to state to them in èn 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 Isenior Statutory Auditor) For and on behalf of Chater Allan LLP Chartered Accountant5 and Statutory Auditors 7 Quy Court Collier5 Lane Stow-cum-Quy CB25 9AU Date: 27 January 2023 16
THE CAMBRIDGE THEOLOGICAL FEDERATION STATEMENT OF FINANCIAL AcfviTIES (incorporating the Income and Expenditure accountl FOR THE YEAR ENDED 31 AUGUST 2022 Note 2022 Restricted Funds 2021 Total Funds Unrestricted Funds Total Funds Income and endowments Donations and legacies Charitable activities Other trading activities Investment income 10,000 10,000 1.046,067 27,600 46 2,000 901,593 27,645 416 1,046,067 27,600 46 Total Income 1,073,713 10.000 1,083,713 931.654 Expenditure Charitable activities 1,114,975 6,743 1,121,718 939,985 Total expendlture 1,114,975 6,743 1,121.718 939,985 Net expenditure 141,2621 3,257 138,0051 18.3311 Transfers between funds Net movement in funds 141,2621 3,257 138.0051 18,3311 Reconciliation of funds Total funds brought forward 1,741,225 59.162 1,800,387 1.808,718 Total funds ¢arried forward 1,699,963 62,419 1,762.382 1,800,387 The statement of financial activities includes all gains and1055es recognised in the year. All income and expenditure derive from continuing activities. 17
THE CAMBRIDGETHEOLOGICAL FEDERATION BALANCE SHEET AS AT31 AUGUST2022 REGISTERED NUMBER: 04700056 Note 2022 2021 FIXED ASSETS Tangible fixed assets 14 1,448,103 1.462.630 Total fixed a55ets 1,448,103 1,462,630 CURRENT ASSETS Trade and other debtors Cash at bank and in hand 15 49,366 364,360 413,726 68,283 316,649 384,932 CREOtTORS'. amounts falllng due withln one year 16 99,447 47,174 NET CURRENT ASSETS 314,279 337,758 TOTAL ASss LESS CURRENT LIABIUTIES 1,762,382 1,800,387 A55ETS 1,762,382 1,800,387 RESERVES Restricted Funds Unrestricted Fund5 18 62,419 1,699.963 59,162 1,741,225 TOTAL FUNDS 1,762,382 1,800,387 These financial statements have been prepared in accordance with the provislons applicable to companies subject to the Small companie5, regime. The financial statements were approved by the Board of TrL¢Stees and authorised for issue on 23rd January 2023 and signed on its behalf by Professor john Bell Chair Andrew Chamberlain Head of Central Services 18
THE CAMBRIDGE THEOLOGICAL FEDERATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022 2022 2021 Cash flows from operatlng activities Net expenditure 138,0051 18,3311 Adjustments for- Depreciation of tangible fixed a55ets Other interest receivable and similar income 14,526 1461 15,317 14161 Changes in.. Trade and other debtors Trade and other creditor5 18,917 52,275 40,837 1154.6271 Net cash generated byjlused inl operating activities 47,665 1107,2201 Cash flows from investing activities Interest received 46 416 Net cash generated by investing activities 46 416 Net increaselldecreasel in cash and tash equivalents Cash and cash equivalents at beginning of year 47,711 316,649 1106,8041 423,453 Cash and cash equlvalents at end of year 364.360 316,649 19
THE CAMBRIDGE THEOLOGICAL FEDERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 I. 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 OBI. Income and Expenditure account A statutory Income and Expenditure account is not included as the required information is presented in the Statement of Financial Artivities. 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 accounls in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, the Charities Act 2011 and the Companies Act 2006. 3. ACCOUWING POLICIES Basis of preparation The financial statements have been prepared on the hlstorical cost basis. The financial statements are prepared in 5terlinE, which is the functional currency of the entity. Going concern The dirertors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts. Judgements and key sources of estimation un¢ertainty Estimates and judgements are continually evaluated based on historical experience and other factor5, including expectation5 of future events that are believed to be reasonable under the circurnstances. Fund accounting Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Designated funds are unrestricted fLFnds earmarked by the trustees for particular future project or commitment. 20
THE CAMBRIDGE THEOLOGICAL FEDERATION NOTESTO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 3. ACCOUNTING POICIES Icontinuedl 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-cla55es'. rest¥icted income funds or endowment funds. Income All income is included in the Statement of financial activities when entstlement 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 donatiolls or grants is recognised when there Is evidence of entitlement to the gift, receipt is probable and its arnount can be measured reliably. income from contracts for the supply of services is recognised WTth the delivery of the contracted Service. This is classified as unre51ricted funds unless there 15 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 artivities to which it relates.. expenditure on raising funds includes the costs of all funilraising activitie5. event5, non-charitable trading activitie5, and the sale of donated goods. expenijiture on charitable attivities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activitie5. other expenditure includes all expenditure that is neither related to raising funds for the charitv nor part of its expenditure on charitable activities. 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 3PPOrtioned between the activities they contribute to on a reasonable, justifiable and consistent basis. Operating leases Lease paymenls are recognised as an expense over the lease term on a straight-line basi5. The aggregate benefit of lease incentives is recognised a5 a reduction to expense over the lease term, on a straight-line ba51S. 21
THE CAMBRIDGE THEOLOGICAL FEDERATION NOTESTO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 3. ACCOUNTING POLICIES Icontinuedl Tanglble 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 al the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Depreciatlon Depreciation 15 calculated 50 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 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 ènd that contributions are accounted for as if the Scheme were a defined contribution scheme. Debtors Trade and other debtors are recognised at the settlement arnount 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 Ilquid investments with a short maturity of three months or less from the date of aCqUi5Ftion or opening of the deposlt or Similar account. Liabilities and provislons Liabilitie5 are recogni5ed 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 SeiCe5 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 ot 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 recogni5ed within interest payable and similar charges. 22
THE CAMBRIDGE THEOLOGICAL FEDERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 31 AUGUST 2022 4. DONATIONS AND LEGACIES Unrestricted Restricted Funds Funds Total Funds 2022 Total Funds 2021 Donations Grants 10,000 10.000 2,000 10,000 10.000 2,000 5. INCOME FROM CHARITABLE ACTIVITIES Unrestricted Restrirted Funds Funds Total Funds 2022 Total Funds 2021 Theological education and training 1,046,067 1.046.067 901,593 1,046,067 1,046.067 901,593 6. OTHER TRADING ACTIVITIES Unrestricted Restricted Funds Funds Total Funds 2022 Total Funds 2021 Letting 27,600 27,600 27,645 27,600 27,600 27,645 7. INVEsfMENT INCOME Unrestrlcted Restricted Fund5 Funds Total Funds 2022 Total Funds 2021 Bank interest 46 46 416 46 46 416 8. EXPENDITURE ON CHARITABLE ACTIVITIES BY ACTIVITY TYPE Actlvltles undertaken directly 2022 Support Costs 2022 Total 2022 Total 2021 Theological education and traininB 845,955 275,763 1,121,718 939,985 845,955 275,763 1,121,718 939,985 23
THE CAMBRIDGE THEOLOGICAL FEDERATION NOTESTO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 9. ANALYSIS OF SUPPORT COST5 Total 2022 Total 2021 Staff costs Premises General office Governance costs 212,714 20,682 11,175 31,192 225,908 19,660 12.641 21,355 11 275,763 279,$64 Governance costs.. Audit fee5 Accountancy 5.500 25,692 31,192 5,580 15,775 21,355 10. NET INCOMEIIEXPENDITUREI 2022 2021 Net expenditure is stated after char8in8 Depreclatlon of tangible fixed a55ets 14,526 15,317 11. AUDITORS REMUNERATION 2022 2021 Fees payable for the audit of the financial statements Iunderllover accrual in prior year 5,500 5,580 180 12. STAFF COSTS The total staff costs and employee benefits for direttly employed staff for the reporting period are analysed as follows- 2022 2021 Wages and Salaries Social security costs Employer contribution5 to pension plans 178.253 16,477 17,984 212,714 191,322 16,253 18,333 225,908 The average head count of employees during the year was 1012021.. 101 No employee received emFJloyee benefits of more than £60,000 during the year12021: £nill 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 £nil12021: £nill Senior staff pay The account5 direction from the Office for Students requires disclosures about the number of staff with full-time equivalent basic salary of over £IOO,000 per annum and full details of the total remuneration package for the head of provider. 24
THE CAM8RIDGE THEOLOGICAL FEDERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENOED 31 AUGUST 2022 IZ. STAFF COSTS Itontinuedl Until 31 july 2022, 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 wa5 recompensed £16.500 for the secondment. From l August 2022, the head of the provider was redesign3ted a5 Head tsf Central SeNcies and is provided on secondment from one of the rnember institutions, Ridley H811 and is not rernunerated by the Cambridee Theological Federation. Durin8 this period Ridley Hall was recompensed £1.580 for the secondment. 13. TRUSTEE REMUNEFiATION AND EXPENSES The Trustees received no remuneration12021.. £nill during the year. During the period Trustees received reimbursement ot travel expenses of £nil12021:£nill. 14. TANGIBLE FIXED ASSErs Long Lèasehold Property Equipment Totals Cost As at I September 2021 Additions 1.518,943 69.559 1.588,502 As at 31 Au8USt 2022 1,518,943 69.559 1,588,502 Oepretsation As at I September 2021 Charge for the year 65.810 12,152 60,063 2,374 125.873 14.526 As at 31 August 2022 77.962 62,437 140.399 Net book value As at 31 August 2022 1.440,981 7,122 1.448.103 A5 at 31 Au8USt 2021 1,453.134 9,496 1,462,630 Long leasehold property includes £935,000 paid to Westminster College. This is in respect of a lease of the Bounds which comrnenced October 2015 and runs for 125 years. The lease premiurn 15 being depreciated over 125 vears. IS. DEBTOR5 2022 2021 Trade debtors Other debtors 5,226 44,140 18,314 49,969 49,366 68,283 16. CREDITORS- AMOUNTS FALLING OUE WITHIN ONE YEAR 2022 2021 Trade creditors Social security and other taxes Other creditors Accruals and Deferred income 28,616 4,074 8,691 58,066 99,447 7.406 4.009 3.757 32.002 47,174 Deferred incorne: As at I September 2021 Deferred income recogni5ed in the year Resources deferred during the year 1,345 11,3451 1,200 7.207 17.2071 1.345 As at 31 August 2022 Deferred income represents income received in advance. 1,200 1.345 25
THE CAMBRIDGE THEOLOGICAL FEDERATION NOTES TO THE FINANCIALSTATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 17. PENSIONS AND OTHER POST RrriREMENT 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 hold5 the a5set5 of the scheme separately from those of the Employei 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 Penslon 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 pension5, Pension Builder Classic and Pension Builder 2014, both of which are classed as defined benefit Schemes. Pension Builder Cla55ic provides a pension for members for payment from retirement, accurnulated from contributions paid and converted into a deferred annuity during employment based on term5 set and reviewed by the Church of England Pensions Board from time to time. Dlscretionary increases may also be declared, depending upon the investment returns and other factor5. Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirernent. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement. depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65. There is no sub-division of assets between employers in each section of the Pension Buililer 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 3ssets and liabilities to specific employers and that contributlons are accounted for as if the Scheme were a defined contribution scheme. The pension5 COSt5 charged to the SOFA in the year are contribution5 of £17,98412021- £18,333). 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. The next valuation is due as at 31 December 2022. For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the m05t recent annual review, the Board chose to grant a discretionary bonus of 3% following irnprovements in the funding position. There is no requirement for deficit payments at the current time. For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing a55umption5 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, Cambrldge Theological Federation could become responsible for paying a Share of that employerfs pension Ilabilities. 26
THE CAMBRIDGE THEOLOGICAL FEDERATION NOTES TOTHE FINANCIAL STATEMENTS FOR THE YEAR ENOEO 31 AUGUST 2022 18. ANALYSIS OF RESTRicfED FUNDS Atl September 2021 At31 August 2022 Income Expenditure Transfers Maurice and Hilda Laing Trust Brant Jerusalem Trust 59.162 1,482 5,261 57,680 4,739 10.000 59,162 10.000 6,743 62,419 Maurice and Hilda Laing Trust grant During the year £1,482 was spent as the Federation's contribution to the development of a new database in partnership with Trinity College, Bristol and St Mellitus College. The Jeru5alam Trust During the year a £10,000 grant was received from the jerusalem Trust towards a core library of e5ential e- books. £5,261 was spent durinR the vear. 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS Unrestricted Restricted Fund5 Funds Totsl Fund5 Tangible fixed assets Net Current assets 1,448,103 251,860 1.448,103 314.279 62,419 Net assets 1,699,963 62,419 1,762,382 20. ANALYSIS OF GRANT AND FEE INCOME 2022 2021 Grant income from the O Grant income from other bodies Fee income for taught awards (exclusive of VATI Fee income for research awards lexclusive of VATI Fee income from non-qualifying courses (exclusive of VATI 296,543 387,128 243,750 283,590 Total grant and fee income 683,671 527,340 27
THE CAMBRIDGETHEOLOGICAL FEDERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022 21. LEASING AGREEmEs The total future minimurn lease payments under non-cancellable operating leases are as follows.. 2022 2021 Not later than I year Later than l year and not later than S years 733 2,201 733 2,934 2,934 3,667 £775 lease payments were expensed in the year. 22. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES 2021 Unrestricted Restricted Funds Funds Total Fund5 Income and endowments Donations and legacies Charitable activities Other trading activities Investment income 2,000 901,593 27,645 416 2.000 901,593 27,645 416 Totsl income 931,654 931,654 Expenditure Charitable activities 931,654 8,331 939.985 Total expenditure 931,654 8,331 939,985 Net incomellexpenditurel 18,3311 18,3311 Transfers between funds Net movement in funds 18.3311 18,3311 Reconciliation of funds Totsl funds brought forward 1,741,225 67,493 1,808,718 Total funds ¢arrled forward 1,741,225 59,162 1,800,387 23. RELATED PARTY TRANSAcfioNS Member Institutions and associate institutions paid membership fees of £342,600 in the year. 28