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2021-12-31-accounts

Company No. 5543940

Charity No. 1111609

St Paul's Theological Centre

(A Charitable Company Limited By Guarantee)

Trustees' Report and

Financial Statements

For the year ended 31 December 2021

St Paul's Theological Centre

Financial statements for year ended 31 December 2021

Contents Page
Trustees' annual report 1 - 8
Independent auditor's report 9 - 12
Statement of financial activities 13
Balance sheet 14
Statement of cashflows 15
Notes to the financial statements 16 - 22

ST PAUL’S THEOLOGICAL CENTRE Trustees’ Annual Report for the year ending 31 December 2021

Reference and administrative information

The registered name of the Charity is St Paul’s Theological Centre.

Company number: 5543940 Charity Registration Number: 1111609

Principal and Registered Office: Holy Trinity Brompton, Brompton Road, London, SW7 1JA.

Trustees:

Revd Nicky Gumbel (Chair) Angus Winther (Vice Chair) Michael Lee (Treasurer) Andrew Brydon Genevieve Mensah Revd Helen Shannon James Orr Jeremy Jennings Kathleen Chew Revd Miles Toulmin Revd Richard Coates Sarah Jackson Sir Paul Marshall (resigned 13 October 2021)

Company Secretary: Mr Jon Shippen

Bankers: National Westminster Bank PLC, 186 Brompton Road, London, SW3 1XJ. Auditors: Moore Kingston Smith LLP, 6th Floor, 9 Appold Street, London, EC2A 2AP

Objectives and activities

The main aim of the Charity, as laid out in its governing document, is to provide theological education on all aspects of the Christian life and faith in accordance with Biblical principles.

The vision of SPTC is to help bring theology back into the heart of the church and with this in mind it has four related aims:

  1. To provide training in theology and Christian practice for lay people.

  2. To establish a new opportunity for Church leadership training.

  3. To be a theological resource for the benefit of both HTB and Alpha.

  4. To help other churches develop their own theological training.

We have set out below our priorities, activities and achievements in 2021 in pursuit of our aims:

  1. Restructuring : With new leadership in the Autumn of 2020 with the appointment of Revd Russell Winfield as Principal, , we undertook a review of our internal structures to ensure staffing, leadership and governance is effective and fit for purpose to serve the vision and support Russell as he spearheads the aims of the charity.

  2. Communication : We sought to strengthen our communication during a period where this felt a more acute need than ever before as a result of the coronavirus pandemic, in both a more disconnected society, but also an increasingly technologically literate one. As part of this we sought to continue to improve how we share our narrative with others, communicating good news, ensuring accurate representation of our voice, and effective marketing and PR as we seek to strengthen our external messaging.

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ST PAUL’S THEOLOGICAL CENTRE Trustees’ Annual Report for the year ending 31 December 2021

  1. Academic life : We have continued to invest in ways to create an environment where staff thrive in their personal vocation and faith and where the pursuit of the mind is celebrated. This includes creating space for the academic team to pursue research, publish and develop their future careers, as well as for all staff to have space to read, think, discuss and pray.

4. Lay Training :

6. Ordination training and Discernment :

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ST PAUL’S THEOLOGICAL CENTRE Trustees’ Annual Report for the year ending 31 December 2021

7. Developing Theological Resources:

8. Resourcing the HTB Group:

Public benefit

The trustees are aware of the Charity Commission’s guidance on public benefit in “The advancement of religion for the Public Benefit" and have had regard to it in their administration of the resources of SPTC. In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘Public benefit: running a charity (PB2) ’.

The trustees believe that by promoting the Christian faith through theological education, and the training of future church leaders from a wide variety of Christian denominations, it provides a benefit to the public by:

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ST PAUL’S THEOLOGICAL CENTRE

Trustees’ Annual Report for the year ending 31 December 2021

Plans for future periods

SPTC aims to continue its successful partnership with SMC providing high quality theological training in the UK and internationally. SPTC has the following aims for the forthcoming year:

  1. To continue to support the development of high quality theological training through SMC.

  2. To innovate, develop and accelerate engagement with new models of training such as the Peter and Caleb Stream.

  3. To work with churches and dioceses internationally to make theological training and resources available via dispersed learning.

  4. To review the financial and operational model to ensure ongoing sustainability for the future.

St Paul’s Theological Centre Remuneration Policy, Principles and Governance

At SPTC we place great value on our highly talented, dedicated and passionate staff team, without whom we could not deliver against our vision, mission and goals. Our remuneration policy is aimed at ensuring that pay is competitive within our sector, rewards staff fairly and enables the staff team to feel valued.

Our principle is to reward staff, irrespective of seniority, informed by the following:

The HTB Group entities- (HTB, Alpha International (AI), the Church Revitalisation Trust (CRT) and St Paul’s Theological Centre (SPTC - operate in close co-operation and within a shared operating model, including a common approach to pay and benefits for all staff employed within the group entities.

The HTB Group Remuneration Committee (“Group RemCo”) is a joint sub-committee of the HTB PCC and the CRT and SPTC boards, and includes representatives from each. Alpha International has its own Global Remuneration Committee (Global RemCo). In order to maintain a unified approach, Group and Global RemCo interface through the HTB Group COO who sits on both committees.

Authority has been delegated by each of the entity boards to the relevant Group and Global RemCo, to oversee remuneration on behalf of each board whilst acting within the group remuneration framework.

Financial review

SPTC generated income of £1,990,156 (2020: £2,062,887) comprising mainly income from courses of £1,809,399 (2020: £1,894,413). Independent student income from Mid-week courses decreased to £531,383 (2020: £598,301) and income from Ordinands decreased to £1,163,034 (2020: £1,220,766); Peter and Caleb Stream course income increased to £100,499 (2020: £39,915), due to the addition of the Caleb Stream course in the Autumn term.

In addition, there were donations and gifts received of £128,446 (2020: £92,650). These donations and gifts enable SPTC to invest in the future growth of the college, over and above its standard educational provision. SPTC usually expects a slight shortfall on costs each year (which are covered by donations); however, during the 2020 coronavirus pandemic, substantial cost savings were made due to the cancellation of in-person residential courses and a decrease in general expenses such as student catering and other course costs. In-person teaching resumed during the Autumn term of 2021, with lower than budgeted student numbers. SPTC therefore ended 2021 with a shortfall on unrestricted funds of £196,861 (2020 surplus: £369,385) which has been covered by reserves carried forward.

4

ST PAUL’S THEOLOGICAL CENTRE Trustees’ Annual Report for the year ending 31 December 2021

SPTC has a future financial commitment to the Church Renewal Trust – a related entity holding the lease to the St Jude’s building, from where SPTC operates. The Church Renewal Trust incurred significant cost over 2017 and 2018 to carry out necessary repairs to the tower and spire at St Jude’s, and the deficit on this project (after a fundraising appeal) was over £700,000. In 2019, SPTC committed to paying a service fee of £70,000 a year over ten years (ending 2028) out of operating surpluses in order to contribute to this deficit. During the year, St Mellitus College made a donation to the Church Renewal Trust of £225,000, thus alleviating SPTC of their commitment until 2024.

The London Diocese has pledged £250,000 towards the spire repair work, contingent on successful sale of a property. The trustees believe that a favourable outcome is probable, and therefore this has been disclosed as a contingent asset in the Church Renewal Trust accounts. This contribution has the potential to further reduce SPTC's commitment on the repair project, although at this stage no adjustment has been made.

Policy on reserves

It is the policy of the board of trustees not to build up reserves beyond the operating needs of the charity. SPTC generates the majority of its income from student fees, which are received at the start of each term or academic year. This advance cashflow stream means that there is little requirement for reserves to be held to support operational cashflow needs. In the event of an unexpected reduction in student income for any reason, the board of trustees is confident that it has sufficient flexibility to reduce costs in line with reduction in student numbers. Free reserves at 31 December 2021 were £324,361 (2020: £516,939).

Fundraising

The trustees are committed to maintaining the highest legal and ethical standards in the way the charity undertakes its fundraising activities. All fundraising takes place in-house, and the charity does not use any professional fundraisers or commercial participators. SPTC is committed to abiding by the Code of Fundraising Practice and the Fundraising Promise.

SPTC takes precautions in our fundraising to ensure the protection of the public, including vulnerable persons from unreasonably intrusive or persistent fundraising approaches, and undue pressure to donate. Our fundraising team take seriously any expression of dissatisfaction we receive regarding our fundraising practice and aim to resolve any complaints as quickly as possible. Our policy is to escalate the issue internally to our Dean. If the complaint cannot be resolved, it will be further escalated to the Chair of the board of trustees, who will nominate an independent member of the board of trustees or an independent advisor to consider the merits of the complaint and any resulting actions. If necessary, we will contact the Charity Commission for advice and guidance. No complaints of this nature relating to fundraising were received in 2021.

SPTC has responded to the General Data Protection Regulation (GDPR), introduced in May 2018, and continues to monitor the use of data carefully, particularly concerning donor data for fundraising purposes. Our Privacy Policy covers how we use donor data, and gives donors the option to opt out of any contact or make a formal complaint. We monitor carefully the relationships we have with donors and seek to maintain a consistent means of stewardship based on the guidance of the Code of Fundraising Practice and to Fundraising Promise.

Relationships and Related Parties

Details of related parties are given in notes 16 and 17 of the financial statements.

Structure, governance and management

St Paul’s Theological Centre (SPTC) is a charitable company limited by guarantee and not having a share capital. It was registered as a company on 23rd August 2005 and with the Charity Commission on 10th October 2005.

Procedures for the recruitment and appointment of trustees are laid out in the memorandum and articles of association. Trustees nominate new or replacement trustees with approval by the members. The trustees are also directors for the purpose of Company Law.

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ST PAUL’S THEOLOGICAL CENTRE Trustees’ Annual Report for the year ending 31 December 2021

New trustees are provided with guidance notes explaining their role and responsibilities as trustees of the charity. All new trustees are fully briefed on the activities and vision of SPTC and they pursue the independent interests of the charity notwithstanding their separate responsibilities in other organisations.

Weekly management team and general staff meetings during term time deal with the day to day issues arising. An executive committee meets as and when needed to deal with wider strategy, finance and staff appointment issues arising between board meetings. The board meets a minimum of three times a year.

Trustees’ Responsibilities

Company law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of the charity’s affairs and of the surplus or deficit for that year. In preparing these financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the trustees at the date of approval of this report confirms that:

  1. So far as the trustees are aware, there is no relevant audit information of which the charity’s auditors are unaware; and

  2. The trustees have taken all the 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 auditors are aware of that information.

Risk Management

The trustees have conducted a review of the major risks to which the charity is exposed. A risk register has been established and is updated at least annually. Where appropriate, systems and procedures have been established to mitigate the risks that the charity faces. Procedures are in place to ensure compliance with health and safety of staff, volunteers and visitors. The schedule of major risks and mitigations identified by the board is set out on pages 7 and 8.

The trustees have considered the continued impact of the coronavirus on SPTC’s operations. Activities have continued uninterrupted throughout the pandemic with appropriate protocols put in place in line with government guidance and the changing nature of risk. Since September in-person activities have resumed, alongside some continued online activities as outlined above. Student numbers in September 2021 were slightly lower than usual which is thought to be as a result of the pandemic,. The trustees are keeping the potential financial effect under review, action is being taken to increase fundraising activity and reduce costs where appropriate to ensure that the college remains financially sustainable.

This report was approved by the board on 15 June 2022, and signed on its behalf by

The Reverend Nicky Gumbel Chair of the board of trustees

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ST PAUL’S THEOLOGICAL CENTRE Trustees’ Annual Report for the year ending 31 December 2021

Schedule of Major Risks

Potential Risk Mitigation
1. Loss of confidence by stakeholders,
including but not limited to its
students, due to the behaviour of
senior leadershipor staff members.		 •
Organisational values are clearly defined and regularly
communicated.
•
Oversight and governance structures are in place for senior
leaders and staff.
2. Lack of clarity over the relationship
between SPTC and SMC could result in
poor governance and difficulties in
decision making between the two
entities.		 •
A close and effective relationship exists between SPTC and SMC.
The Chair of SPTC is one of the three members of SMC and two
other SPTC trustees also serve on the SMC board.
•
Compliance with Charity Commission, Fundraising and other
regulatory requirements is closely monitored.
•
Conflicts of interest are considered and disclosed for all decisions
related to SMC and other HTB group entities. Conflicted trustees
are excluded from the decision-making process where
appropriate.
3. Harm comes to visitors or staff due to
lack of appropriate and compliant
Health & Safety procedures.		 •
Internal and external H&S advisors monitor and report on risk
areas identified.
•
Regular H&S reporting takes place at senior management and PCC
meetings.
•
Staff trainingin keyH&Sprocedures is ongoing.
4. Inability to operate in the event of a
disaster due to lack of adequate
business continuity planning. Business
continuity compromised or critical
data lost through cyber-attack.		 •
Comprehensive property insurance is in place.
•
IT systems are backed up remotely and can be accessed remotely.
•
Significant investment has been made in upgrading our digital and
technology systems, including security.
5. Lack of adequate quality control
results in reduced student numbers
and loss of income.		 •
Working closely with Dioceses of the Church of England who
provide a core of the student numbers through ordination.
•
SMC is subject to regular external reviews from Ministry Division
and the Quality Assurance Agency.
•
SMC has a Registrar and Academic Manager who are responsible
for ensuringongoingmonitoringand review.
6. Lack of sufficient income and/or
inadequate cashflow results in an
inability to meet salary and creditor
payments.		 •
Student fees provide a form of steady income, any reduction in
fees would be offset by a reduction in staff required.
•
A Fund Development Manager has been appointed to increase
funding from donations, which have historically covered new
initiatives and funded innovation
•
7. Data security breach or failure to
demonstrate compliance with GDPR
requirements could result in a
significant fine or other regulatory
action.		 •
Internal and external GDPR advisors monitor and report on risk
areas identified.
•
Staff training in GDPR is ongoing.
•
An HTB Group-wide project to implement a data management
framework and to upgrade processes across the organisation is
ongoing to ensure a resilient and secure approach to data
handlingand compliance with GDPR.
8. Operating and financial model are not
sustainable.		 •
Fundraising activities will meet needs over the next few years.
The financial team have developed a plan of approach which
includes a clear timeline of data gathering, reporting to key
stakeholders, and modelling options that is to be completed by
June 2022 with the intention to bring a clear presentation of the
options and financial implications to the summer SMC and SPTC
board meetings

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ST PAUL’S THEOLOGICAL CENTRE Trustees’ Annual Report for the year ending 31 December 2021

Work is being undertaken to explore financial sustainability across the College including looking at modelling student numbers and types, examination of staffing needs, understanding cost savings of the pandemic and seeing what can be replicated, and testing boundaries of provision with Durham University and National Ministry Team.

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ST PAUL’S THEOLOGICAL CENTRE

Opinion

We have audited the financial statements of St Paul’s Theological Centre (‘the company’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we

9

conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

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There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of this report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

James Cross (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

6th Floor 9 Appold Street London EC2A 2AP

Date: 1 July 2022

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ST PAUL'S THEOLOGICAL CENTRE

STATEMENT OF FINANCIAL ACTIVITIES

For the year ended 31 December 2021

Note
INCOME
Donations and legacies
Gift aid
Collections, donations and grants
Investment income
Coronavirus Job Retention Scheme grant
Income from charitable activities
School of Theology courses
Mid-week courses
Mid-week courses - ordinands
Peter & Caleb Stream courses
Other income including overseas hubs
Income from space rental
TOTAL INCOME
Expenditure on Raising Funds
Costs of raising funds
3
Expenditure on Charitable Activities
4
School of Theology courses
Mid-week courses
Wider ministry of SPTC
Development of site
TOTAL EXPENDITURE
Net operating income / (expenditure)
(Loss) on multi-employer pension scheme deficit reduction plan
18
Net income / (expenditure) and net movement in funds
Funds brought forward at 1 January
Funds carried forward at 31 December		 Unrestricted
funds
2021
£
930
58,849
59,779
54
-
14,483
531,383
1,163,034
100,499
21,017
31,240
1,861,656
1,921,489
40,040
101,293
1,778,447
38,513
153,057
2,071,310
2,111,350
(189,861)
(7,000)
(196,861)
549,028
352,167		 Restricted
funds
2021
£
-
68,667
68,667
-
-
-
-
-
-
-
-
-
68,667
-
3,603
63,243
1,384
925
69,155
69,155
(488)
-
(488)
488
-		 Total
funds
2021
£
930
127,516
128,446
54
-
14,483
531,383
1,163,034
100,499
21,017
31,240
1,861,656
1,990,156
40,040
104,896
1,841,690
39,897
153,982
2,140,465
2,180,505
(190,349)
(7,000)
(197,349)
549,516
352,167		 Total
funds
2020
£
2,321
90,329
92,650
283
26,460
35,431
598,301
1,220,766
39,915
17,281
31,800
1,943,494
2,062,887
6,972
86,658
1,468,133
34,618
145,246
1,734,655
1,741,627
321,260
(1,000)
320,260
229,256
549,516

All amounts are derived from continuing activities. The notes on pages 16 to 22 form part of these financial statements.

All recognised gains and losses are included in the statement of financial activities. The statement of financial activities also complies with the requirement for an income and expenditure account under the Companies Act 2006.

13

ST PAUL'S THEOLOGICAL CENTRE

BALANCE SHEET

as at 31 December 2021

Note
FIXED ASSETS
Intangible assets
7
Tangible fixed assets
8
Total fixed assets
CURRENT ASSETS
Debtors
9
Cash at bank and in hand
10
Total current assets
LIABILITIES: AMOUNTS FALLING DUE WITHIN ONE YEAR
11
NET CURRENT ASSETS
LIABILITIES: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
12, 18
NET ASSETS
FUNDS
Unrestricted
14
- General funds
Restricted
Registered No. 5543940		 2021
£
21,860
5,946
27,806
313,564
176,088
489,652
(156,291)
333,361
(9,000)
352,167
352,167
-
352,167		 2020
£
21,860
10,229
32,089
170,863
483,787
654,650
(126,223)
528,427
(11,000)
549,516
549,028
488
549,516

Approved by the Board on 15 June 2022 and signed on its behalf

by:

……………………………………………………………….

The Rev’d Nicky Gumbel Chairman of the board of trustees

The notes on pages 16 to 22 form part of these financial statements.

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ST PAUL'S THEOLOGICAL CENTRE

STATEMENT OF CASHFLOWS

For the year ended 31 December 2021

Note
2021
£
Net income / (expenditure)
(197,349)
Adjustments for:
Depreciation
8
10,325
(Increase) / decrease in debtors
(142,701)
Increase / (decrease) in creditors
28,068
Net cash (outflow) / inflow from operating activities
(301,657)
Investing Activities
(Purchase) / disposal of tangible fixed assets
8
(6,042)
(Purchase) / disposal of intangible fixed assets
7
-
(Decrease) / increase in cash and cash equivalents
(307,699)
Cash brought forward at 1 January
483,787
Cash carried forward at 31 December
176,088		 2020
£
320,260
py
14,951
py
(77,825)
py
(3,662)
py
253,724
py
-
py
1,240
254,964
py
228,823
py
483,787
py

The charity has no net debt and accordingly no net debt note is presented.

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ST PAUL'S THEOLOGICAL CENTRE Notes to the financial statements For the year ended 31 December 2021

1. Accounting policies

Basis of preparation

These financial statements are prepared on a going concern basis, under the historical cost convention.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the Charity also prepared its financial statements 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 (The FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011. The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest pound. Funds General funds represent the funds of the Charity that are not subject to any restrictions regarding their use and are available for application on the general purposes of the charity. Funds designated for a particular purpose by the Charity are also unrestricted.

Restricted funds represent those received for specific purposes as specified by the donors. The accounts include all transactions, assets and liabilities for which the Charity is responsible in law. Going concern

The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions, including those as a result of the coronavirus pandemic, that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the potential impact of a reduction in course income, as a result of the coronavirus pandemic.

The coronavirus pandemic caused significant operating challenges, to which SPTC adapted quickly, delivering teaching virtually whilst staff worked remotely. In-person working and teaching resumed in September 2021 for the new academic year, however student numbers were slightly lower than target, due to the pandemic and the uncertainty it has caused. The trustees are keeping the potential financial effect under review, with steps already taken to reduce costs in order to mitigate against this drop in student numbers and therefore income, and they have also secured additional funding (£954k) for this academic year. The trustees have therefore concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

Income

Voluntary income and capital sources Planned giving receivable under Gift Aid is recognised when the charity is notified of its legal entitlement, the amount due is quantifiable and its ultimate receipt by the charity is probable. Income tax recoverable on Gift Aid donations is recognised when the income is received. Grants and legacies to the Charity are accounted for as soon as the Charity is notified of its legal entitlement, the amount due is quantifiable and its ultimate receipt by the charity is probable.

Income from investments

Interest entitlements on bank accounts are accounted for as they accrue.

Expenditure Pension costs SPTC makes available a defined contribution pension scheme for staff. SPTC also participates in the Church of England Funded Pension Scheme for Stipendiary Clergy (see note 18). All pension costs are charged in the financial statements as they fall due. Expenditure Expenditure is charged to the Statement of Financial Activities as it falls due, and is analysed according to its nature between the following categories: - Expenditure on raising funds - Expenditure on charitable activities As reflected in note 17 (Related Parties), a strong partnership and working relationship is enjoyed between HTB, Alpha International (AI), St Paul’s Theological Centre and the Church Revitalisation Trust. Shared service costs (known as Central Services) are borne by HTB and then recharged to the other charities using the most appropriate driver for each service cost type. These support costs are then allocated between charitable activities based on estimates of the resources employed by Central Services towards each of these activities.

Fixed assets

The charity capitalises any fixed assets over £1,000.

Fixed assets
The charity capitalises any fixed assets over £1,000.		 Fixed assets
The charity capitalises any fixed assets over £1,000.
These assets are depreciated on a straight line basis over their estimated useful economic lives. The periods used are as follows:
Computer equipment: 2 years
Furniture & fittings: 3 years
Other equipment: 3 years
Intangible assets (computer software): 2 years

Intangible assets Software costs are capitalised at historic costs and amortised on a straight line basis over 2 years. Current assets Amounts owing to the Charity at 31 December are shown as debtors after providing for amounts that it is thought may prove uncollectable.

Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

16

ST PAUL'S THEOLOGICAL CENTRE Notes to the financial statements For the year ended 31 December 2021

1. Accounting policies (continued)

Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 9, 11 and 12 for the debtor and creditor balances.

Creditors

Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Operating lease

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

Government grants

Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the associated costs for which the grant is intended to compensate. SPTC did not receive any Government assistance under the Coronavirus Job Retention Scheme (CJRS) during 2021 (2020: £26,460).

Critical accounting estimates and areas of judgement

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

(i) Useful Economic Lives

The annual depreciation charge for property, plant and equipment is sensitive to change in the estimated useful economic lives and residual value of assets. These are reassessed annually and amended were necessary to reflect current circumstances.

(ii) Pension Scheme Liability

The pension liability relies on actuarial assumptions (see note 18 for further details).

(iii) Support Cost Allocation

The allocation of support costs from Central Services is based on estimates of the resources used by Central Services on each of these activities.

2. Comparative Statement of Financial Activities

The following table analyses 2020's income and expenditure between unrestricted and restricted funds:

INCOME
Donations and legacies
Gift aid
Collections, donations and grants
Investment income
Coronavirus Job Retention Scheme grant
Income from charitable activities
School of Theology courses
Mid-week courses
Mid-week courses - ordinands
Peter Stream course
Other income including overseas hubs
Income from space rental
TOTAL INCOME
Expenditure on Raising funds
Costs of raising funds
Expenditure on Charitable activities
School of Theology courses
Mid-week courses
Wider ministry of SPTC
Development of site
TOTAL EXPENDITURE
Net operating income / (expenditure)
Gain /(Loss) on multi-employer pension scheme deficit reduction plan
Net income / (expenditure) and net movement in funds
Funds brought forward at 1 January
Transfer funds from restricted to unrestricted
Funds carried forward at 31 December		 Unrestricted
Restricted
funds
funds
2020
2020
£
£
2,321
-
10,020
80,309		 Total
funds
2020
£
2,321
90,329
12,341
80,309		 92,650
283
-
26,460
-
35,431
-
598,301
-
1,220,766
-
39,915
-
17,281
-
31,800
-
 283
26,460
35,431
598,301
1,220,766
39,915
17,281
31,800
1,943,494
-		 1,943,494
1,982,578
80,309		 2,062,887
6,972
-
79,507
7,151
1,350,377
117,756
31,764
2,854
143,573
1,673		 6,972
86,658
1,468,133
34,618
145,246
1,605,221
129,434		 1,734,655
1,612,193
129,434		 1,741,627
370,385
(49,125)		 321,260
(1,000)
-		 (1,000)
369,385
(49,125)		 320,260
165,643
63,613
14,000
(14,000)		 229,256
-
549,028
488		 549,516

17

ST PAUL'S THEOLOGICAL CENTRE Notes to the financial statements For the year ended 31 December 2021

3. Costs of raising funds

These are the costs incurred in fundraising.

4. Support costs

Support costs for St Paul's Theological Centre have been allocated to the various courses, events and projects on the basis of workload involved in running them.

Support costs have been apportioned as follows:

Legal
Media, Production and Moving Image
Property costs
IT
Finance
HR
Operations
Total support costs:
Salaries and Accommodation
Other general management
Direct costs
Total on Statement of Financial Activities:		 School of
Theology
Courses
Weekday
Courses
Wider Ministry
(Hubs)
St Jude's
Development
Total
2021
2021
2021
2021
2021
£
£
£
£
£
1,421
21,835
546
365
24,166
159
2,449
61
41
2,710
6,617
101,707
2,541
1,698
112,564
6,481
99,617
2,489
1,663
110,251
4,033
61,982
1,549
1,035
68,599
4,429
68,079
1,701
1,137
75,346
3,717
57,134
1,428
954
63,233		 Total
2020
£
23,722
981
116,157
86,612
57,918
49,644
60,532
26,858
412,805
10,314
6,893
456,870
72,990
1,121,843
28,030
18,733
1,241,597
4,041
62,102
1,552
1,037
68,731
1,008
244,941
-
127,318
373,266		 395,564
1,047,372
48,260
243,458
104,896
1,841,690
39,897
153,982
2,140,465		 1,734,655

As reflected in note 17 (Related Parties), a strong partnership and working relationship is enjoyed between HTB, AI, CRT and SPTC. All shared Support and Creative Services (known as Central Services) are allocated to each of the charities using the most appropriate driver for each department in Central Services.

5. Audit costs and depreciation
Net income/(expenditure) is stated after charging:
Auditor's remuneration - current year estimate
Under accrual for prior year
Depreciation
6. Staff costs
Wages and salaries
Social security costs
Pension costs		 2021
£
4,230
127		 2020
£
3,950

-
4,357 3,950
11,424 14,951
2021
£
1,356,948
134,998
60,018		 2020
£
1,131,968
107,452
50,347
1,551,964 1,289,766

As disclosed in note 17 (Related Parties), there is a close working relationship between HTB, AI, SPTC, and CRT2. The Central Services staff who support all of the charities with 'back office' functions are employed by HTB, and their costs (together with the costs of their departments) are allocated across the entities using the most appropriate basis for each support service. The staff costs and information in this note includes the proportionate share of these Central Services staff, as well as the relevant share of ministry staff who split their time across the charities due to the nature of their roles.

The costs of some members of the HTB clergy were cross-charged for work which was done for SPTC. However, as these clergy members are employed by the Diocese of London and not by HTB, their costs have not been included in the salary figures shown above.

The average monthly number of full time equivalent employees was 36 (2020: 31).

The number of employees whose total benefits (excluding pension) were greater than £60K was 1 (2020: 1), as follows:

£60K-£70K bracket - 1

Central Services staff are on the HTB payroll but serve HTB, AI, SPTC and CRT - each of which bear a portion of their costs. Relevant details of their remuneration can be found in the 'Staff Costs' note in the HTB Financial Statements.

None of the trustees received remuneration for services as employees or consultants during the year, or for services as trustees (2020: £Nil) – refer to note 16 for further details.

Key Management Personnel

The key management personnel of SPTC comprises the Principal and the Assistant Dean of SPTC. The total employee remuneration (including pension and employer NIC) was £106,215 (2020: £98,237).

The key management personnel of the Central Service function which serves HTB, AI, SPTC, and CRT comprise the Group Director of People and the HTB Group Chief Operating Officer. The total employee benefits (including pension and employer NIC) of these key management personnel was £206,700 (2020: £191,078); SPTC only bore a portion of these costs £17,118 (2020: £13,666).

Redundancy/termination payments

These totalled £774 for the year (2020: £2,559), and include statutory payments as well as ex-gratia amounts where these were considered appropriate. This includes SPTC's share of any Central Services redundancies.

18

ST PAUL'S THEOLOGICAL CENTRE Notes to the financial statements For the year ended 31 December 2021

7. Intangible fixed assets

COST
Opening balance at 1 January 2021
Additions
Disposals
Closing balance at 31 December 2021		 Computer
Software
£
21,860
-
-
21,860

As at the 31 December 2021, this asset is yet to be brought into use and therefore no amortisation has been charged for the period.

8. Tangible fixed assets

COST
Opening balance at 1 January 2021
Additions
Disposals
Closing balance at 31 December 2021
DEPRECIATION
Opening balance at 1 January 2021
Charge for 2021
Disposals
Closing balance at 31 December 2021
NET BOOK VALUE
At 31 December 2020
At 31 December 2021
9. Debtors
Trade debtors
Prepayments and accrued income
Balance owed by HTB
Sundry debtors
Balance owed by St Mellitus College
10. Cash at bank and in hand
Cash at bank
11. Liabilities: Amounts due within one year
Creditors for goods and services
Balance owed to HTB
Taxation and social security
Accruals and deferred income
Total
All deferred income relates to and will be released in the following financial year.
12. Liabilities: Amounts due in greater one year
Church of England Funded Pension Scheme liability (see note 18)
13. Analysis of net assets by fund
2021
Fixed assets
Intangible assets
Debtors
Cash at bank and in hand
Liabilities
Total
2020
Fixed assets
Intangible assets
Debtors
Cash at bank and in hand
Liabilities
Total		 Computer
Equipment
Furniture &
Fittings
Other
Equipment
£
£
£
23,361 17,528 52,089
2,942
- 4,199
(1,099)
- -		 Computer
Equipment
Furniture &
Fittings
Other
Equipment
£
£
£
23,361 17,528 52,089
2,942
- 4,199
(1,099)
- -		 Computer
Equipment
Furniture &
Fittings
Other
Equipment
£
£
£
23,361 17,528 52,089
2,942
- 4,199
(1,099)
- -		 Total
£
92,978
7,141

(1,099)
25,204 17,528 56,288 99,020
23,232 17,528
606

(1,099)
 41,989
- 10,818
- -		 82,749
11,424

(1,099)
22,739 17,528 52,807 93,074
129
-10,100 10,229
2,465
- 3,481 5,946
2021
Unrestricted
176,088		 2021

Restricted
-
 2021
£
6,946
100,017
-
154
206,447		 2020
£
34,847
50,997
9,728
5,767
69,524
313,564 170,863
2021

£
176,088		 2020
£
483,787
2021
£
7,197
17,641
29,793
101,661
156,291
2021
£
9,000
£
£
5,946
-
21,860
-
313,564
-
176,088
-
(165,291)
-
Restricted
funds
General
funds		 2021
£
7,197
17,641
29,793
101,661		 2020
£
1,307
-
27,387
97,530
156,291 126,223
2021
£
9,000		 2020
£
11,000
Total
2021
£
5,946
21,860
313,564
176,088
(165,291)
352,167
-		 352,167
£
£
10,229
-
21,860
-
170,863
-
483,299
488
(137,223)
-
General
funds
Restricted
funds		 Total
2020
£
10,229
21,860
170,863
483,787
(137,223)
549,028
488		 549,516

19

ST PAUL'S THEOLOGICAL CENTRE

Notes to the financial statements For the year ended 31 December 2021

14. Restricted funds

14. Restricted funds
Opening
Balance
Income
2021
2021
£
£
488
-
Support of Peter Stream- funding towards Peter Stream Ministry
-
68,667
Total Restricted Funds
488
68,667
Opening
Balance
Income
2020
2020
£
£
63,111
-
502
44,309
Support of Peter Stream- funding towards Peter Stream Ministry
-
36,000
Total Restricted Funds
63,613
80,309
15. Commitments
Not later than one year
Total
World wide development of SPTC- funding towards the development of SPTC
overseas
As at 31 December 2021 SPTC had the following operating lease commitment:
As at 31 December 2021 SPTC (SMC) was committed to a new student database
2021
2020
World wide leadership training- funding for media resources, youth training and
lectures
World wide leadership training- funding for media resources, youth training and
lectures
On 14 December 2018, the SPTC board agreed to pay the unfunded costs of the emergency spire repair work carried out
in 2017 and 2018 at St Jude's Courtfield Gardens. These payments could be accelerated at the board's discretion,
however the original intent was for SPTC to pay the Church Renewal Trust £70,000 per annum, over a period of ten years.
During the year, St Mellitus College made a donation to the Church Renewal Trust of £225,000, thereby alleviating SPTC
of their commitment until 2024. The London Diocese has pledged £250,000 towards the spire repair work, contingent on
successful sale of a property they own. The trustees believe that a favourable outcome is probable, and therefore this has
been disclosed as a contingent asset in the Church Renewal Trust accounts. This contribution has the potential to further
reduce SPTC's commitment on the repair project, although at this stage no adjustment has been made.		 Opening
Balance
Income
2021
2021
£
£
488
-
-
68,667		 Transfer to
Unrestricted

Funds

2021

£
-
-		 Expenditure
2021
£
(488)
(68,667)		 Closing
Balance
2021
£
-
-
488
68,667		 -
 (69,155) -
Opening
Balance
Income
2020
2020
£
£
63,111
-
502
44,309
-
36,000		 Transfer to
Unrestricted

Funds

2020

£
(14,000)		 Expenditure
2020
£
(49,111)
(44,323)
(36,000)		 Closing
Balance
2020
£
-
488
-
63,613
80,309		 (14,000) (129,434) 488
2021
£
-		 2020
£
5,500
- 5,500
- 7,854
During the year, St Mellitus College made a donation to the Church Renewal Trust of £225,000, thereby alleviating SPTC
of their commitment until 2024. The London Diocese has pledged £250,000 towards the spire repair work, contingent on
successful sale of a property they own. The trustees believe that a favourable outcome is probable, and therefore this has
been disclosed as a contingent asset in the Church Renewal Trust accounts. This contribution has the potential to further
reduce SPTC's commitment on the repair project, although at this stage no adjustment has been made.
Not later than one year
Later than one year but not later than five years
Later than five years		 -
210,000
125,000		 70,000
280,000
210,000
335,000 560,000

20

ST PAUL'S THEOLOGICAL CENTRE Notes to the financial statements For the year ended 31 December 2021

16. Related Parties (see Related Entities, below)

None of the trustees were reimbursed expenses during the year (2020: none).

TRUSTEE RELATED TRUSTEESHIPS REMUNERATIO
N FOR NON
TRUSTEE
SERVICES		 RELATED PARTY PAYMENTS
Nicky Gumbel Alpha International (Trustee,
Member and Chair of the Board),
Holy Trinity Brompton (Trustee and
Chair of PCC), Church Revitalisation
Trust (Trustee, Member and Chair of
the Board), The Church Renewal
Trust (Trustee, Member and Chair of
the Board) and St Mellitus College
Trust (Trustee).		 £Nil (2020: £Nil)


 None
Andrew Brydon Holy Trinity Brompton (Trustee),
Church Revitalisation Trust
(Member) and Alpha International
(Member).		 £Nil (2020: £Nil) None
Jeremy Jennings The Church Renewal Trust (Trustee
and Member) and Alpha
International (Member).		 £Nil (2020: £Nil) None
Angus Winther Alpha International (Member), Holy
Trinity Brompton (Trustee), Church
Revitalisation Trust (Trustee), St
Mellitus College Trust (Trustee),
Ecclesiastical Insurance Office PLC
(Director) and Ecclesiastical
Insurance Group PLC (Director).		 £Nil (2020: £Nil) Ecclesiastical acts as insurers to
the HTB Group.
The 2021 insurance premium for
SPTC amounted to £6,008 (2020:
£5,410).
Genevieve Mensah Church Revitalisation Trust
(Member), Holy Trinity Brompton
(Trustee), Church Renewal Trust
(Member) and Alpha International
(Member).		 £Nil (2020: £Nil) None
Kathleen Chew Alpha International (Trustee). £Nil (2020: £Nil) None
Richard Coates Church Revitalisation Trust
(Trustee), St Mellitus College Trust
(Trustee) and St Peter's Brighton
(Trustee).		 £Nil (2020: £Nil) None
Sarah Jackson Holy Trinity Brompton (Trustee, until
24 May 2021).		 £Nil (2020: £Nil) Sarah Jackson is the CEO of
CRT, a related entity. See note
17 for disclosure of transactions
between SPTC and CRT.
Sir Paul Marshall Church Revitalisation Trust (Trustee). £Nil (2020: £Nil)
 None
Miles Toulmin Holy Trinity Brompton (Trustee, until
24 May 2021).		 £Nil (2020: £Nil) None

17. Related Entities

. Related Entities
ENTITY INCOME EXPENDITURE BALANCE
OWED TO/
(FROM) SPTC AT
YEAR END
NOTES
The Church Renewal Trust (CRT1) £Nil (2020: £Nil) £Nil
(2020: £70,000)		 £Nil (2020: £Nil) The Church Renewal Trust was
responsible for the development
of St Jude's, Courtfield Gardens
which was officially opened on 27
November 2012 as the new home
of SPTC and SMC. CRT1 holds
the lease of 125 years on St
Jude's with the Diocese of
London. In 2018 CRT1 finished
repair of the tower and spire at St
Jude's, Courtfield Gardens.
SPTC's service fee commitment
towards these repairs is outlined
in note 15.
Church Revitalisation Trust (CRT) £68,667
(2020: £36,000)		 £Nil (2020: £Nil) £Nil (2020: £Nil) During 2021, Church
Revitalisation Trust granted
SPTC two grants, both specified
towards support of Peter Stream
Ministry.
Holy Trinity Brompton (HTB) £Nil (2020: £Nil) £Nil (2020: £Nil) (£17,641) (2020:
£9,175 owed to
SPTC)		 SPTC bears a share of Central
Services costs charged by HTB
(see note 6).

21

ST PAUL'S THEOLOGICAL CENTRE Notes to the financial statements For the year ended 31 December 2021

17. Related Entities (Continued)

. Related Entities (Continued)
ENTITY INCOME EXPENDITURE BALANCE
OWED TO/
(FROM) SPTC AT
YEAR END
NOTES
St Mellitus College Trust (SMC) £1,793,743
(2020:
£1,908,062)		 £188,173
(2020: £71,649)		 £206,447
(2020: £69,524)		 SPTC has a very close working
relationship with St Mellitus
College; SMC pays a portion of
student income to SPTC, and
SPTC reimburses SMC for a
portion of shared costs. The
governing structure of SMC
stipulates that the board should
include nominees of the SPTC
board and in 2021 these were
Revd Nicky Gumbel, Mr Angus
Winther and Revd Richard
Coates.

18. Pension liability note

St Paul's Theological Centre participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the schemes separately from those of the Responsible Bodies.

Each participating Responsible Body in the scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pension costs charged to the SOFA in the year are contributions payable towards benefits and expenses accrued in that year (2021: £51,274, 2020: £29,281), plus the figures in the table below as being recognised in the SOFA, giving a total charge in 2021 of £49,274 (2020: £21,281).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at 31 December 2018. The 2018 valuation revealed a deficit of £50m, based on assets of £1,818m and a funding target of £1,868m, assessed using the following assumptions:

Following the 31 December 2018 valuation, a recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) are as set out in the table below.

to December January 2021 to
% ofpensionable stipends 2020 December 2022
Deficit repair contributions 11.9% 7.1%

As at 31 December 2019, 31 December 2020 and 31 December 2021 the deficit recovery contributions under the recovery plan in force were as set out in the above table.

For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme’s rules.

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the balance sheet liability over 2020 and over 2021 is set out in the table below.

d over 2021 is set out in the table below.
2021 2020
Balance sheet liability at 1 January 11,000 19,000
Deficit contribution paid (9,000) (9,000)
Interest cost (recognised in SOFA) - -
Remaining charge to the balance sheet liability* (recognised in SOFA) 7,000 1,000
Balance sheet liability at31 December 9,000 11,000

18. Pension liability note (continued)

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. In general, these are set by reference to the duration of the deficit recovery payments but as at 31 December 2021, under accounting rules, the payments are not discounted since the remaining recovery plan is less than 12 months. No price inflation assumption is needed since pensionable stipends for the remainder of the recovery plan are already known.

December 2021 December 2020 December 2019 December 2020 December 2019
Discount rate 0.0% 0.2% 1.1% pa
Price inflation n/a 3.1% 2.8% pa
Increase to total pensionable payroll -1.5% 1.6% 1.3% pa

The legal structure of the Scheme is such that if another Responsible Body fails, St Paul's Theological Centre could become responsible for paying a share of that Responsible Body’s pension liabilities.

22