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2022-08-31-accounts

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

REGISTERED COMPANY NUMBER: 06074349 (England and Wales) REGISTERED CHARITY NUMBER: 1122789

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

FOR

EMMANUEL THEOLOGICAL COLLEGE (A COMPANY LIMITED BY GUARANTEE)

Fairhurst Statutory Auditor Chartered Accountants Douglas Bank House Wigan Lane Wigan Lancashire WN1 2TB

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE

CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 August 2022

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 7
Report of the Independent Auditors 8 to 11
Statement of Financial Activities 12
Statement of Financial Position 13
Statement of Cash Flows 14
Notes to the Statement of Cash Flows 15
Notes to the Financial Statements 16 to 22

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE

REFERENCE AND ADMINISTRATIVE DETAILS for the Year Ended 31 August 2022

TRUSTEES

Mr M P Elliott (resigned 31/7/2022) The Rt Rev M Davies Revd A R Brown Mrs M A Cheung The Revd Dr A O Chimhowu The Revd D A Craven Revd S S Gill Revd A Ham The Rt Rev E G Ineson (resigned 31/7/2022) Dr A Lazz-Onyenobi The Revd Canon Dr R Mann The Rt Rev Canon Dr B A Mason Revd N J Mckee Revd R L Pennystan Mr N R Robson The Rt Rev M S A Tanner (resigned 31/7/2022) The Rt Rev P J North (appointed 1/8/2022) Mr G Colville (appointed 15/10/2022)

REGISTERED OFFICE 7 Abbey Square Chester Cheshire CH1 2HU

REGISTERED COMPANY 06074349 (England and Wales) NUMBER

REGISTERED CHARITY 1122789 NUMBER INDEPENDENT AUDITORS Fairhurst Statutory Auditor Chartered Accountants Douglas Bank House Wigan Lane Wigan Lancashire WN1 2TB

Page 1

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE (REGISTERED NUMBER: 06074349)

REPORT OF THE TRUSTEES for the Year Ended 31 August 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2022. The trustees have adopted the provisions of 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).

OBJECTIVES AND ACTIVITIES Objectives and aims

The objects are:

  1. The advancement of theological education in areas of Christian faith, mission, practice and

The provisions of learning opportunities for members of churches and other interested persons; The sharing of theological resources with and among local churches, committees and other training providers; The preparation of persons for accredited forms of ministry; and The provision of opportunities for post-graduate study.

2. To advance theological education generally.

Emmanuel Theological College aims to equip the whole people of God of the whole mission of God today, by providing outstanding courses and programmes for lay and ordained leadership in the Church of England and beyond. There are a variety of different pathways through the College curriculum for Licensed Lay Ministry candidates and ordinands.

The College offers teaching and supervision at all levels of study from Certificate of Higher Education to MA and doctoral studies for those wanting to do further study and extend their existing qualifications.

Students study part-time, with many remaining in full-time employment.

Achievements and Performance

Emmanuel Theological College has had a demanding and largely successful year in our first full year of operation following the transition from All Saints Centre for Ministry and Mission in April 2021, with new Articles of Association, revised charitable objectives, and a new board of trustees and directors.

All duties and responsibilities of the College pertaining to our aims and objectives have been undertaken. We have fulfilled our commitments to the University of Durham Common Awards and to the Ministry Council of the Church of England.

Emmanuel Theological College was inspected by the University of Durham Common Awards Team in May 2022 and was given an outstanding report by the head of Common Awards, Professor Mike Higton.

Rt Revd Mark Tanner stepped down as Chair of the Board in July 2022 and was replaced by The Rt Revd Philip North.

Public benefit

The trustees confirm that they have complied with the duty under section 17 of the Charities Act 2011 to have due regard to the public benefit guidance issued by the Charities Commission.

All Saints trains lay and ordained ministers to university standards for the Church of England. Independent students are also encouraged and welcomed. The costs of training are not charged to the majority of students and courses are open to members of the public at a subsidised cost. The professional training of the church's ministers is essential to the quality of the service that they offer to the public.

Page 2

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE (REGISTERED NUMBER: 06074349)

REPORT OF THE TRUSTEES

for the Year Ended 31 August 2022

FINANCIAL REVIEW

Investment policy and objectives

The funds have been invested in short term investments in order to continue the activities of the company.

Reserves policy

The movement on reserves can be seen in detail in note 12 to these accounts.

The Trustees have agreed that the aim is for a minimum of six months gross salary and benefits costs be maintained within reserves. Based on the costs incurred this financial year, this would mean that reserves should stand at approximately £355,000.

The trustees recognise that there is currently a shortfall however, it is anticipated that a surplus will be achieved in the 2023 financial year which will go some way to reducing the shortfall.

Financial review

Income for the year totalled £926,503 (2021: £603,260) and expenditure amounted to £1,120,337 (2021: £794,523) per the Statement of Financial Activities (SOFA), leaving net deficit of £193,834 (2021: £191,263).

The trustees receive regular information and carefully monitor the financial position of the charity at their meetings.

They continue to review costs and reduce these where possible to ensure there are sufficient funds available to fulfil the core purposes of the charity as set out in the objectives above.

The trustees are satisfied that Emmanuel Theological College will have adequate resources to continue to operate as a going concern for the foreseeable future and have prepared the financial statements on that basis.

Page 3

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE (REGISTERED NUMBER: 06074349)

REPORT OF THE TRUSTEES for the Year Ended 31 August 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity, formerly called The Southern North West Training Partnership, was established in 2006 as an outworking of the commitment of church leaders and trainers in the region, to collaborate more closely in the provision of quality local and ecumenical theological education and training. Their vision was for a unitary and fully ecumenical Regional Training Partnership (the "RTP").

It became a company limited by guarantee on 30 January 2007 and gained charitable status in February 2008.

In May 2013, the charity changed its name to All Saints Centre for Mission and Ministry and then to Emmanuel Theological College in April 2021. It is governed by the provisions contained within its Memorandum and Articles of Association (reconstituted in 2021), the requirements of its partner institutions and other statutory and charity laws.

There are twelve Member bodies who appoint the Board of Trustees as follows:

The DBF of the Diocese of Chester The DBF of the Diocese of Carlisle The DBF of the Diocese of Liverpool The DBF of the Diocese of Manchester The DBF of the Diocese of Blackburn The DBF of the Diocese of Sodor and Man

The Bishop of Carlisle The Bishop of Chester The Bishop of Liverpool The Bishop of Manchester The Bishop of Blackburn The Bishop of Sodor and Man

Each member of the company has a personal liability limited to £1 under their guarantee as company members in the event of the company being wound up.

Recruitment and appointment of new trustees

The term trustee has the meaning as set out in section 177 of the Charities Act 2011, that is, "the persons having the general control and management of the administration of the charity regardless of what they are called". In the case of a charitable company, it is the directors who are the charity trustees. Throughout this report the word "director(s)" can also be read as "trustee(s)".

The trustees are appointed as per the Articles of Association, and are receiving ongoing training, as appropriate. Some senior staff have job titles incorporating the title 'Director' but they are not directors of the company for the purposes of company law. None of the trustees has any beneficial interest in the company.

The Chair of the Board was Bishop Mark Tanner, until July 2022 when it became Bishop Philip North, and the Board normally meets 4 times per year.

The Board of Trustees is responsible for the vision, strategy, and significant policies of Emmanuel Theological College. Operational responsibility is devolved to the Dean and Chief Executive Officer as per the relevant Schedule. As stated in its principal activities, Emmanuel Theological College provides the advancement of theological education in areas of Christian faith

Page 4

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE (REGISTERED NUMBER: 06074349)

REPORT OF THE TRUSTEES for the Year Ended 31 August 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT Organisational structure

The day-to-day overview of the operation of the Course is in the hands of the Principal. This includes:

In accordance with clause 11.1 of the Articles of Association, the Board of Trustees has also established sub-committees, the functions of which are listed below. All sub-committees assist the Principal in carrying out his duties and are required to report all acts and proceedings to the Board as soon as is reasonably practical.

Deans Review and Remuneration Subcommittee undertakes the following tasks:

Academic and Partnerships Subcommittee undertakes the following tasks:

Business and Finance Subcommittee undertakes the following tasks:

Page 5

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE (REGISTERED NUMBER: 06074349)

REPORT OF THE TRUSTEES for the Year Ended 31 August 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Related parties

The trustees acknowledge that due to the complexity of the structures in which Emmanuel Theological College operates, a number of related party transactions may occur. A related party transaction is one where the charity has a relationship with another party, which might inhibit it from pursuing its own interests.

Any decision by a charity to enter into a transaction ought to be influences only by the consideration of the charity's own interests. This does not necessarily mean that all transactions with related parties are influenced by the consideration of interests other than the charity's, nor that they are liable to invalidation, but transparency is important and therefore information about such transactions is necessary.

The transactions and balances with related parties are disclosed in note 13 to the financial statements.

Risk management

The trustees have a duty to identify and review the risks to which the Charity is exposed and to ensure appropriate controls are in place.

In addition to the risk of fraud and error, the principal risks relate to the number of student enrolments and the funding provision for the Ministry Division of Archbishops' Council and other sponsoring bodies.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Emmanuel Theological College for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Page 6

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE (REGISTERED NUMBER: 06074349)

REPORT OF THE TRUSTEES for the Year Ended 31 August 2022

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those 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 charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

AUDITORS

The auditors, Fairhurst, will be proposed for re-appointment at the forthcoming Annual General Meeting.

28 June 2023 | 17:19 BST Approved by order of the board of trustees on ............................................. and signed on its behalf by:

.......................................................................... The Rt Rev P J North - Trustee

Page 7

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EMMANUEL THEOLOGICAL COLLEGE

Opinion

We have audited the financial statements of Emmanuel Theological College (the 'charitable company') for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows 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 (United Kingdom Generally Accepted Accounting Practice).

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Page 8

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EMMANUEL THEOLOGICAL COLLEGE

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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

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

Page 9

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EMMANUEL THEOLOGICAL COLLEGE

Our 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 a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charity and the sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, The Companies Act 2006, UK Tax, employment, pension and health & safety regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and Charities Act.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements.

Our procedures to respond to risks identified included the following:

To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in our audit procedures described above. The more removed those laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspections of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Page 10

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EMMANUEL THEOLOGICAL COLLEGE

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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 charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Dennis BA(Hons) FCA (Senior Statutory Auditor) for and on behalf of Fairhurst Statutory Auditor Chartered Accountants Douglas Bank House Wigan Lane Wigan Lancashire WN1 2TB 28 June 2023 | 20:17 BST Date: .............................................

Page 11

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the Year Ended 31 August 2022

Notes
INCOME AND ENDOWMENTS FROM
Charitable activities
3
Course Fees
Investment income
2
Total
EXPENDITURE ON
Charitable activities
4
Education and training for Ministry
NET INCOME/(EXPENDITURE)
Other recognised gains/(losses)
Actuarial gains on defined benefit schemes
Net movement in funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 2022
Unrestricted
funds
£
924,894
1,609
926,503
1,120,337
(193,834)
-
(193,834)
354,267
160,433		 2021
Total
funds
£
603,194
66
603,260
794,523
(191,263)
3,000
(188,263)
542,530
354,267

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 12

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE (REGISTERED NUMBER: 06074349)

STATEMENT OF FINANCIAL POSITION 31 August 2022

2022
Unrestricted
funds
Notes
£
CURRENT ASSETS
Debtors
9
70,898
Prepayments and accrued income
-
Cash at bank and in hand
358,716
429,614
CREDITORS
Amounts falling due within one year
10
(269,181)
NET CURRENT ASSETS
160,433
TOTAL ASSETS LESS CURRENT
LIABILITIES
160,433
NET ASSETS
160,433
FUNDS
12
Unrestricted funds
160,433
TOTAL FUNDS
160,433		 2021
Total
funds
£
17,403
-
489,810
507,213
(152,946)
354,267
354,267
354,267
354,267
354,267

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

28 June 2023 | 17:19 BST

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:

.............................................

The Rt Rev P J North - Trustee

The notes form part of these financial statements

Page 13

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE
STATEMENT OF CASH FLOWS
for the Year Ended 31 August 2022
2022
Notes
£
Cash flows from operating activities
Cash generated from operations
1
(237,703)
Net cash used in operating activities
(237,703)
Cash flows from investing activities
Interest received
1,609
Net cash provided by investing activities
1,609
Cash flows from financing activities
New loans in year
105,000
Loan repayments in year
-
Net cash provided by financing activities
105,000
Change in cash and cash equivalents in the
reporting period
(131,094)
Cash and cash equivalents at the beginning
of the reporting period
489,810
Cash and cash equivalents at the end of the
reporting period
358,716		 2021
£
(102,781)
(102,781)
66
66
60,000
(2,500)
57,500
(45,215)
535,025
489,810

The notes form part of these financial statements

Page 14

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE

NOTES TO THE STATEMENT OF CASH FLOWS for the Year Ended 31 August 2022

1. RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net expenditure for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Interest received
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Difference between pension charge and cash contributions
Net cash used in operations		 2022
£
(193,834)
(1,609)
(53,495)
11,235
-
(237,703)		 2021
£
(191,263)
(66)
124,465
(34,917)
(1,000)
(102,781)

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1/9/21 Cash flow At 31/8/22
£ £ £
Net cash
Cash at bank and in hand 489,810 (131,094) 358,716
489,810 (131,094) 358,716
Debt
Debts falling due within 1 year (60,000) (105,000) (165,000)
(60,000) (105,000) (165,000)
Total 429,810 (236,094) 193,716

The notes form part of these financial statements

Page 15

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 August 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Allocation and apportionment of costs

Wherever possible, each item of expenditure is allocated to either charitable activities or governance costs, according to the function it pertains to. The cost of charitable activities includes support costs, which are those costs not constituting part of the output of a charitable activity but which are necessary for its delivery. The main items allocated to support costs are the employment of administrative staff together with the running costs of the charity's offices.

Governance costs are costs associated with the governance arrangements of the charity and include the preparation of the financial statement and their review, legal advice for the trustees and the costs of holding trustees meetings.

Whenever a cost cannot be directly allocated to any of the above, an apportionment is made on a just and reasonable basis.

Taxation

As a registered charity, the company is exempt from income and corporation tax to the extent that its income and gains are applicable to charitable purposes only.

The charity is not able to recover Value Added Tax and therefore all expenditure in the accounts is recorded inclusive of VAT.

Fund accounting

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts.

All funds are unrestricted funds, which are expendable at the discretions of the trustees in furtherance of the objects of the charity.

Page 16

continued...

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 August 2022

2.
INVESTMENT INCOME
Deposit account interest
3.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Partner Dioceses Reader Fees Course Fees
Independent Students
Course Fees
Module Fees
Course Fees
Sundry sources
Course Fees
Training Fees
Course Fees
Director of Studies
Course Fees
4.
CHARITABLE ACTIVITIES COSTS
Education and training for Ministry
5.
SUPPORT COSTS
Education and training for Ministry
Support costs, included in the above, are as follows:
Management
Admin staff wages
Other operating leases
Insurance
Postage and stationery
Other costs
Admin travel & training
Legal fees
Carried forward		 Direct
Costs
£
884,310		 2022
£
1,609
2022
£
-
31,287
-
23,850
869,757
-
924,894
Support
costs (see
note 5)
£
236,027
2022
Education
and
training
for
Ministry
£
178,711
8,046
2,606
373
22,443
6,987
-
219,166		 2021
£
66
2021
£
144,000
(20,270)
19,448
1,101
362,915
96,000
603,194
Totals
£
1,120,337
Management
£
236,027
2021
Total
activities
£
126,006
10,015
2,386
3,100
30,848
-
64,727
237,082

continued...

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DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 August 2022

5. SUPPORT COSTS - continued

Management - continued

Brought forward
Accountancy assistance
Audit fees
Office moves and set-up
Bank fees		 2022
Education
and
training
for
Ministry
£
219,166
-
5,701
10,353
807
236,027		 2021
Total
activities
£
237,082
1,264
9,000
-
-
247,346

6. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Other operating leases 2022
£
8,046		 2021
£
10,015

7. TRUSTEES' REMUNERATION AND BENEFITS

No Trustees received any remuneration for services as trustees, but the Revd Canon Michael Leyden was paid for his role as Principal of the College. He was also reimbursed expenses in connection with his work of- £6,073 (2021 - nil). None of the Trustees received travel expenses (2021 - none).

Michael Leyden's salary package was made up of salary, housing allowance, book allowance and retreat allowance and the total taxable salary was £32,330 (2021 - nil). The pension contributions are under a non-contributory scheme, as detailed in note 14 and amounted to £9,680 (2021 - nil).

John Applegate was the Principle in 2021 financial year. His salary package for 2021 was made up of salary, housing allowance, book allowance and retreat allowance and the totalled £34,732. The pension contributions made on his behalf to a non-contributory scheme, as detailed in note 14 were nil (2021:£44,419).

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2022 nor for the year ended 31 August 2021.

continued...

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DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 August 2022

8. STAFF COSTS

Wages and salaries
The average monthly number of employees during the year was as follows:
Academic
Administration
No employees received emoluments in excess of £60,000.
9.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments and accrued income
10.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 11)
Other loans (see note 11)
Trade creditors
Social security and other taxes
Other creditors
Accrued expenses		 2022
£
655,246
655,246
2022
13
5
18
2022
£
18,797
5,315
46,786
70,898
2022
£
105,000
60,000
-
12,980
86,541
4,660
269,181		 2021
£
486,366
486,366
2021
6
5
11
2021
£
12,557
2,860
1,986
17,403
2021
£
-
60,000
199
12,806
9,526
70,415
152,946

continued...

Page 19

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 August 2022

11. LOANS

An analysis of the maturity of loans is given below:

Amounts falling due within one year on demand:
Bank loans
Loans from connected charities		 2022
£
105,000
60,000
165,000		 2021
£
-
60,000
60,000

All of the above loans are interest-free and not secured and are repayable in full by 31st August 2022..

12. MOVEMENT IN FUNDS

Unrestricted funds
Other charitable funds
Designated fund
TOTAL FUNDS
Net movement in funds, included in the above are as follows:
Unrestricted funds
Other charitable funds
Designated fund
TOTAL FUNDS		 At 1/9/21
£
354,267
-
354,267
354,267
Incoming
resources
£
926,503
-
926,503
926,503		 Net
movement
in funds
£
(181,033)
(12,801)
(193,834)
(193,834)
Resources
expended
£
(1,107,536)
(12,801)
(1,120,337)
(1,120,337)		 At
31/8/22
£
173,234
(12,801)
160,433
160,433
Movement
in funds
£
(181,033)
(12,801)
(193,834)
(193,834)

continued...

Page 20

DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 August 2022

12. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
Other charitable funds
Designated fund
TOTAL FUNDS		 At 1/9/20
£
440,430
102,100
542,530
542,530		 Net
movement
in funds
£
(98,964)
(89,299)
(188,263)
(188,263)		 At
31/8/21
£
341,466
12,801
354,267
354,267

Comparative net movement in funds, included in the above are as follows:

Incoming
resources
£
Unrestricted funds
Other charitable funds
603,261
Designated fund
(1)
603,260
TOTAL FUNDS
603,260
RELATED PARTY DISCLOSURES
Loans from related party organisations are as follows
The Diocese of Blackburn
The Diocese of Carlisle
The Diocese of Chester
The Diocese of Liverpool
The Diocese of Manchester
The Diocese of Sodor & Man		 Resources
expended
£
(705,225)
(89,298)
(794,523)
(794,523)		 Gains and
Movement
losses
in funds
£
£
3,000
(98,964)
-
(89,299)
3,000
(188,263)
3,000
(188,263)
2022
2021
£
£
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000

13. RELATED PARTY DISCLOSURES

continued...

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DocuSign Envelope ID: 04B628F4-8EF8-483D-9DFF-795A3DC746A8

EMMANUEL THEOLOGICAL COLLEGE

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 August 2022

14. EMPLOYEE BENEFIT OBLIGATIONS

Pension Builder Scheme

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

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

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

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

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme's assets and liabilities to specific employers and that contributions are accounted for as if the Scheme were a defined contribution scheme.

Church of England Funded Pension Scheme (CEFPS)

Emmanuel Theological College participates in the Church of England Funded Pensions Scheme for stipendiary clergy. 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 specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme.

The pensions costs charged to the SoFA in the year in respect of the above schemes were £114,730 (2021: £67,286).

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