## **Cumbria Christian Learning** **Previously called** Lancashire and Cumbria Theological Partnership ## **Report and** ## **Unaudited Financial Statements** ## **for the Year to** **31st December 2020** **Company Registration No 4412662** **Registered Charity No. 1105055** **CUMBRIA CHRISTIAN LEARNING** ## **CONTENTS** ## **Page** - **1** Reference and Administrative Details - **2-4** Annual Report of the Council **5** Independent Examiner's Report **6** Statement of Financial Activities **7** Balance Sheet - **8-14** Notes to the accounts **CUMBRIA CHRISTIAN LEARNING** ## **COUNCIL'S REPORT** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** The Trustees, who are directors of the Company for the purposes of company law, present their report together with the financial statements of the Charity for the year ended 31 December 2020. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) – (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. ## **Reference and Administrative Details of CCL** The members of Council, who are the trustees (for the purposes of charity law) and directors (for the purposes of company law), during the period and as at the date of signing follow: Nominated by Carlisle Diocesan Board Prof A S Garden of Finance Mrs V J Hallard The Revd Canon Prof R Hannaford (Chair) Mr D S Hurton Mr M D G Lawson The Revd B Lock The Rt Revd J W S Newcome Mrs A Ransome (Resigned 28 October 2020) **Company Secretary** Richard Jaques **Acting Director** The Revd Canon Prof R Hannaford **Registered Office** Church House, 19-24 Friargate, Penrith CA11 7XR **Company Registration Number** 4412662 **Charity Registration Number** 1105055 **Bankers** HSBC PO Box 5 29 English Street Carlisle Cumbria, CA3 8JT **Reporting Accountants** Dodd & Co FIFTEEN Rosehill Montgomery Way Rosehill Estate Carlisle Cumbria, CA1 2RW **Insurers** Ecclesiastical Insurance Group Montpellier House Montpellier Gloucester, GL1 1LF 1 **CUMBRIA CHRISTIAN LEARNING** ## **COUNCIL'S REPORT** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Structure, Governance and Management** CCL was incorporated as a company limited by guarantee on 9th April 2002 under the name of Carlisle and Blackburn Diocesan Training Institute. It was registered with the Charity Commission from 22nd July 2004. Its governing document is its Memorandum and Articles of Association. By Special Resolution of its members the name was changed to Lancashire and Cumbria Theological Partnership on 4th September 2007 and then to Cumbria Christian Learning on 5th December 2017. The business of CCL is managed by its Council of Management who are the Directors for the purposes of the Companies Acts. The members of Council who have served during the year are listed on page 1. Historically, CCL always had a close association with the University of Cumbria (formerly St Martin's College). In recognition of this an agreement was made with effect from 2nd November 2006 between the Diocesan Boards of Finance of Carlisle and Blackburn and the University of Cumbria to restructure the charity. As a result, membership was changed so that the two Diocesan Boards of Finance remained members and the University of Cumbria appointed two members. Following this change of members, the two Diocesan Boards of Finance each nominated two members of Council and the University of Cumbria nominated four members of Council. All other members of Council not thereby nominated resigned. In 2016, it was agreed by the two Dioceses and the University that the charity would operate on behalf of and be controlled in full, going forward, by the Diocese of Carlisle. On 31st August 2016, those members and Directors representing the Blackburn Diocese and the University of Cumbria resigned, and on 1st September of that year, seven new Trustees were appointed. Cumbria Christian Learning provided the full range of ministerial learning and development activities for Carlisle Diocese. It also provides some learning and development support to other partners in the ecumenical county of Cumbria, including the Methodist and United Reformed churches. In January 2019, a resolution was passed which would lead to the transfer of activities, staff, name, and net assets/liabilities back into ownership of the Carlisle Diocesan Board of Finance Ltd, with a view to CCL ceasing to trade and being dissolved as a charity. A majority of this transfer took place on 31 January 2019, leaving just the Initial Ministerial Education (IME1) training activities within CCL, with the intention of obtaining the appropriate contract novation with Durham University with regards to their accreditation of this training. In July 2020 it was announced that a new theological training institution, 'Emmanuel Theological College', was to be established to serve all of the Dioceses in the North West of England, starting from 1 August 2021. As a result, new and existing ordinands will commence/continue their training with this new college. At that point, the charity will be start the process of being dissolved. The Council of CCL monitors and assesses the major risks faced by the Company. Regular reporting by the Principal/Acting Director to the Council enables potential problems to be identified at an early stage. A fully documented risk assessment and management strategy is in place in order to mitigate the impact of the risks faced by CCL. No Member of Council has any beneficial interest in the Company. 2 **CUMBRIA CHRISTIAN LEARNING** ## **COUNCIL'S REPORT** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **Objectives and Activities** CCL's principal objective is to prepare men and women for all categories of Ordained Ministry and accredited Lay Ministry and to assist in the preparation of men and women for Reader Ministry. It provides training courses which are, where appropriate, academically validated through the University of Cumbria and Durham University. It aims to encourage and enable the Church in the Diocese of Carlisle, and throughout the area to explore and discover those forms of ministry most appropriate to rapidly changing social and economic conditions both nationally and regionally. It also aims to encourage candidates to develop new styles of ministry recognising both the Christian tradition and the context of ministry. In considering how the objectives of CCL are achieved the trustees have had regard to the Charity Commission's guidance on public benefit, principally with regard to the advancement of religion but also for the advancement of education. Graduates of CCL programmes enter public ministry at different levels in a variety of institutions and remain subject to the guidance given on public benefit which is, in turn, reported on by those institutions. ## **Achievements and Performance** Since 1 February 2019, only IME1 training has been carried out by CCL, which continued to operate under the accreditation of Durham University. The ordination training continued successfully through 2020, with five students completing their ordination training, and six new students enrolling in September 2020. The outbreak of the coronavirus pandemic in March 2020 had a significant impact on the way in which CCL had to operate its training. Great credit is to be paid to staff, tutors and students alike, whose hard work and ability to work flexibly enabled the training to continue, mainly online. ## **Financial Review** These Financial Statements cover a period of 12 months to 31st December 2020. The work of CCL is funded mainly from two sources: Firstly, income is received from the Diocesan 'RME Block Grants' fund, whereby CCL is able to charge the Diocese prescribed fees for those of its Ordination students who are training via CCL. Secondly, the Carlisle Diocesan Board of Finance makes a grant to CCL, aimed to help sustain the charity during its early years as it built up student numbers and hence increases its fee income. Total net assets at 31 December 2020 were £6,309, all being free reserves and with no restricted funds. Council believe that sufficient reserves should be held to support the ongoing activities of CCL and ensure that liabilities can be paid when they fall due. The major source of income comes from fees which are received termly, so sufficient reserves are needed to be maintained to cover up to one term's worth of expenditure (approximately £30,000 at that time). However, as a large majority of the expenses are paid via the Diocese, this is no longer considered to be necessary and funding from the Diocese will be provided, if necessary, until the charity is dissolved in 2021. 3 CUMBRIA CHRISnAN LEARNING COUNCIL'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 Flnanclal Review Continu Although the coronaviws had a signrficant impa(* on the way in trainiThJ was provided, finanoial impact of the virus was a redLLtion cwating cxjsts, a5 the rnajcrty ofthe usual r￿￿lenti81 and fa￿ to fa￿ trainiwJ was not appropriate. The ￿ key sources of CCL'S income were UnaffÈ(X￿ by the pandem The Finan¢k?I Statemer)t5 which follcw compty vrilh the governing d(MxJrrent and have been prepared in accordan wth the Charty Acuunting Regulati￿9 and the Ststement of Rec0mrT￿[￿Ied Pra(XK%'A{r￿unIing and Reporting by Chartties-. statement of Council's R nslbilitles CorTyary law requires the D￿r￿t0[S lo prepare fmaTrial Ststem￿ts for eath finanLJal peri(xl wlwth gNe a true and fair v￿￿ of the 5tste of affaits of the C(Mnpany arKI of the irKryne aThJ expeThJitwe of Ihe Cc¥npanyknthat pwiod. In preparing those finanual statement5, the Diiedor5 are iequired to.. al Se￿¢t suitatAe &ctNJnting wAiL7es and then ap￿ Ihem (x￿lS1en1tr. bl make j￿Ig￿￿ents and estimates t￿ are reasonat4e and pft￿, cl prepare the finanrAal staternents on the gcxTrJ 0)n￿rn b8sts untess it is inappropn.ate to presume that ihe dl state whether aFWicable Accouftting Standards have been foknved, sJJbJect to ￿ rnateri￿ departures dtsdosed The Dire(*ors are responsitAe for keeping propw ar￿untIng rttuds which dtsdtise with reasonable a(xJJracy at any time the finanoal positvjn ofthe Company to enat4e them to en$￿￿ (hat the fKan¢ial statements comply with the Companies Ad 2006. They are a150 re5pxMsible for safeguarding Ihe assets of the Company and he￿ lor taking reasonable sleps ts the ￿eventiOn and deteciw)n of fiaud awKI 0￿r irTegLslarrtEs. Byorder ofthe Crw(al Mr D S Hurton 20 September 2021 **CUMBRIA CHRISTIAN LEARNING** ## _**Independent examiner’s report to the Trustees of Cumbria Christian Learning**_ I report to the charity Trustees on my examination of the accounts of the charity for the year ended 31 December 2020 which are set out on pages 6 to 14. ## **Respective responsibilities of Trustees and examiner** As the charity Trustees of Cumbria Christian Learning (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). Having satisfied myself that the accounts of Cumbria Christian Learning are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner’s statement** I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 1. accounting records were not kept in respect of Cumbria Christian Learning as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’; which is not a matter considered as part of an independent examination; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)]. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. ……………………………………………… Faye Armstrong FCA Institute of Chartered Accountants in England and Wales FIFTEEN Rosehill Montgomery Way Rosehill Estate CARLISLE CA1 2RW 5 ## **CUMBRIA CHRISTIAN LEARNING** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020** |**Notes**
**INCOME AND ENDOWMENTS FROM:**
Donations and legacies
2
Investment income
2
Income from charitable activities
Training courses
3
**Total**
**EXPENDITURE ON:**
Charitable activities
Costs of training
4
**Total**
**NET INCOME / (EXPENDITURE)**
**TRANSFERS BETWEEN FUNDS**
**NET MOVEMENT IN FUNDS**
**Fund Balances brought forward**
**FUND BALANCES CARRIED FORWARD**
10|**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**2020**
**2020**
**2020**
**£**
**£**
**£**
23,000
-
23,000
47
-
47
67,858
-
67,858
**90,905**
**-**
**90,905**
88,256
-
88,256
**88,256**
**-**
**88,256**
2,649
-
2,649
-
-
-
**2,649**
**-**
**2,649**
3,660
-
3,660
**6,309**
**-**
**6,309**
-|**Total**
**Funds**
**2019**
**£**
77,833
137
59,764| |---|---|---| |||**137,734**| |||133,952| |||**133,952**| |||3,782
-| |||**3,782**
(122)| |||**3,660**| |||| The notes on pages 8 to 14 form part of these accounts. 6 CiIMBRIA CHRISTfAN LEARNING BALANCE SHEET AS AT 31 DECEMBER 2020 31 DecemFxr 31 D￿ember 2020 2019 Curr¢rrt Assets Cash al bank 62.255 60.147 62.Z55 60.147 Crpdilors Amounts Pdlling due %￿h1n LY* ￿ar 55.946 .487 Net CurrentAssets 3,660 ASSEYS 3,660 Unre5trictpd FurKk Capital fund General fund8 18.939 112,6301 18.939 115,2791 Total UnrEslriEled FurKIs 3,660 R¢stri¢¢¢d Fund5 RTP io Totsl Restricted Funds TOTAL FUNDS 6.30Y 3,660 Company registrdtson hum￿r. 4412662 Forthe financial period ended 31st D8c8mb8r 2020 the Chartywas efititknj to txemplh)n fvom 8￿jit uThJer sedion 477 of th? CompaTh*s Ad 20Cfj. The members have not teguwed tharity to oL*aiTr an audit aLKounts forthe sear in ques*'on ITr accerdance wih section 476. The directors athno¥vledge their respon%￿￿￿ forc(ry￿Trj *ith Ihe requirenxnts of lh8 Act resped lo accounting ords a￿j Ihe preparalK>n of accounts. These accounts have been prepared in accordan￿￿11￿ ts prwwns applK8bkto ccffipanEs ￿bjec1 to the small trA)fflpa￿￿S regitne. Approved by the Board on sMJned on its tr*hatfby. Mr D S Hurton rusleel 20 September2021 The notes w pwJe5 8 to 14 fw¥n p8rtofthese ￿xX)u￿ts. ## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2019** ## **1 Accounting policies** ## **Summary of significant accounting policies and key accounting estimates** The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. ## **Statement of compliance** The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. ## **Basis of preparation** The charitable company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes. ## **Going concern** These financial statements have been prepared on a going concern basis. The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements. The charity is dependent on the ongoing support of Carlisle Diocesan Board of Finance (CDBF) in order to continue trading. CDBF will continue to support the charity as its activities reduce and until the charity ceases operations. On this basis, the trustees believe the going concern basis is appropriate. ## **Fund accounting policy** Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity. Further details of each fund are disclosed in note 10. ## **Income and endowments** Donations are recognised when the Charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the Charity before the Charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the Charity and it is probable that these conditions will be fulfilled in the reporting period. Investment income is recognised on a receivable basis. Income from charitable activities includes income recognised as earned (as the related goods or services are provided) under contract. 8 **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2019** ## **1 Accounting policies (continued)** ## **Expenditure** Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Costs of generating funds are the costs of trading for fundraising purposes. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. ## **Support costs** Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage. ## **Irrecoverable VAT** Irrecoverable VAT is charged against the category of resources expended for which it was incurred. ## **Taxation** The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. ## **Cash and Cash Equivalents** Cash and cash equivalents comprise cash on hand and all deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. ## **Liabilities** Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. ## **Pensions** The charity operates a defined contribution pension scheme. Contributions are charged in the statement of financial activities as they become payable in accordance with the rules of the scheme. 9 **CUMBRIA CHRISTIAN LEARNING** ## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020** |**2020**
**2**
**Donations and legacies**
**£**
Grants from Diocesan Board of Finance
23,000
Other Donations
-
23,000
All donations and legacies received related to unrestricted funds.
**Investment income**
**£**
Bank interest receivable
47
All investment income received related to unrestricted funds.
**3**
**Income from training courses**
**£**
**£**
**£**
**Tuition fees**
Sponsored students
66,788
54,611
Independent students
545
2,135
Other fee income
525
3,018
67,858
67,858|**2019**
**£**
77,833
-| |---|---| ||77,833| ||**£**| ||137| ||**£**
59,764| ||59,764| All income from training courses received related to unrestricted funds. 10 **CUMBRIA CHRISTIAN LEARNING** ## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020** |**4**
**Training Costs**
**Staff costs**
Academic, Training & Director staff
**Other training costs**
Travel costs
Cost of Training Delivered
Registration Fees
Training Grants Paid
Books
Sundry expenses
**Support costs**
All training costs related to unrestricted funds
**5**
**Support Costs**
Staff costs
Recruitment costs
Postage & telephone
Printing, copying & stationery
Computer expenses
Legal
Bank charges
Independent Examination
All Support costs related to unrestricted funds.
of which:
**Governance**
Legal
Independent Examination
**6**
**Net Income for the Period**
This is stated after charging:
Reporting Accountant's Remuneration|**£**
1,015
7,596
6,108
-
213
47|**2020**
**£**
54,714
14,979
18,563|**£**
3,956
15,593
5,770
2,151
2,148
1,381|**2019**
**£**
94,665
30,999
8,288| |---|---|---|---|---| |||||| |||88,256||133,952| |||**£**
13,722
2,395
508
-
446
13
159
1,320||**£**
4,238
239
767
51
101
1,572
-
1,320| |||18,563||8,288| |||13
1,320||1,572
1,320| |||1,333||2,892| |||**£**
1,320||**£**
1,320| 11 **CUMBRIA CHRISTIAN LEARNING** ## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **7 Taxation** No provision has been made for taxation as the Company's activities are wholly charitable. ## **8 Staff** In 2020 £68,000 was paid to the Diocese of Carlisle to cover the costs of personnel seconded to the Company (2019: £83,000). No remuneration has been paid to any director of the Company. Neither have any expenses been paid (2019: £nil). The Acting Director was employed by the Carlisle DBF until December 2020, but none of his salary or pension was charged to CCL. |Wages & Salaries
**Staff Costs (Employed and Seconded/Recharged)**
Employee costs during the year were as follows:
National Insurance Contributions
Employer's contributions to defined contribution pension
schemes
Employer's contributions to clergy pension|**2020**
**£**
51,719
5,410
1,658
9,649
68,436|**2019**
**£**
73,591
7,157
1,272
16,883| |---|---|---| |||98,903| The monthly average number of persons (including senior management) employed by / seconded to the charity during the year was as follows: |Employed
**9 Creditors:**
**Amounts falling due within one year**
Carlisle DBF
Accruals
Seconded|**2020**
**2019**
0
0
1
2
1
2
**2020**
**2019**
**£**
**£**
54,467
55,041
1,479
1,446
55,946
56,487| |---|---| 12 **CUMBRIA CHRISTIAN LEARNING** ## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020** |**10 Funds**
**Capital Funds**
**General Funds**
Balance brought forward 1st January
Net income for the period
Transfer from RTP Fund
Balance carried forward 31st December
**Total Unrestricted Funds**
**Restricted Funds**
**RTP**
Balance brought forward 1st January
Net income for the period
Transfer to General Fund
Balance carried forward 31st December
**Total Funds**
**11 Net Assts by Fund**
Current assets
Creditors: Amounts falling due within one year
Net assets
The assets, liabilities and activities of the unincorporated|**2020**
**2019**
18,939
18,939
(15,279)
(19,061)
2,649
3,782
-
-
(12,630)
(15,279)
6,309
3,660
-
-
-
-
-
-
6,309
3,660
**Unrestricted Restricted Total Funds**
**Funds**
**Funds**
**2020**
**£**
**£**
**£**
62,255
-
62,255
(55,946)
-
(55,946)
Carlisle and Blackburn Diocesan Training|**2019**
18,939| |---|---|---| |||(15,279)| |||| |||3,660| |||-
-
-| |||| |||| |||3,660| |||**Total Funds**
**2020**
**£**
62,255
(55,946)| ||6,309
-|6,309| ## **12 Ultimate controlling party** Cumbria Christian Learning is under the ultimate control of its member, the Carlisle Diocesan Board of Finance ('CDBF'). ## **13 Related Party Transactions** The charity has received a grant from the parent company, Carlisle Diocesan Board of Finance of £23,000. (2019 - £77,833). CDBF are owed an amount of £54,467 at the year end (2019: £55,041), which arises from various expenses being paid on behalf of CCL. In 2020, CCL a total of £68,436 was recharged for the use of staff employed by Carlisle DBF (2019: £81,402). 13 **CUMBRIA CHRISTIAN LEARNING** ## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **14 Pension Scheme** Staff seconded to or utilised from the Carlisle DBF had pension contributions paid into the either a defined contribution scheme (£1,658) or the Church of England Clergy Pension Scheme (£9,648). There were no outstanding or prepaid contributions at either the beginning or the end of the period. 14