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2023-07-31-accounts

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WESTMINSTER THEOLOGICAL CENTRE

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 JULY 2023

Charity Number: 1123573 Registered Company No: 06506007

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WESTMINSTER THEOLOGICAL CENTRE ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2023

CONTENTS

Page
LEGAL AND ADMINISTRATIVE DETAILS 1
TRUSTEES’ REPORT 2 - 8
(INCORPORATING THE DIRECTORS’ REPORT)
INDEPENDENT AUDITOR’S REPORT 9 - 11
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 12
CONSOLIDATED AND PARENT BALANCE SHEET 13
CONSOLIDATED STATEMENT OF CASH FLOW 14
NOTES TO THE FINANCIAL STATEMENTS 15 - 20

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WESTMINSTER THEOLOGICAL CENTRE LEGAL AND ADMINISTRATIVE DETAILS YEAR ENDED 31 JULY 2023

LEGAL AND ADMINISTRATIVE DETAILS

COMPANY NAME Westminster Theological Centre
(a company limited by guarantee)
COMPANY NUMBER 06506007
CHARITY REGISTRATION NUMBER
1123573
TRUSTEES/DIRECTORS Mr L Singlehurst (Chair to March 2023)
Mr N Langford (Chair from March 2023)
Mrs G P de Berry
Mr R Ellis
Mrs S Hunter (from June 2023)
Rev A S Johnson
Mr A Junaid
Mrs R K Lynas (to January 2024)
Rev Dr L Miller (to January 2024)
COMPANY SECRETARY
Dr J Knecht (from July 2022)
Mrs C B Catto (to July 2022)
KEY MANAGEMENT PERSONNEL
Dr L Peppiatt - Principal
Mrs J M Lawry-White – Chief Operating Offcer
Dr B Blackwell - Vice-Principal (from August 2023)
Mrs C B Catto – Finance Director
REGISTERED OFFICE & Westminster Theological Centre
PRINCIPAL OFFICE ADDRESS
Suite 5, Winchcombe House
5-39 Winchcombe Street
Cheltenham
GL52 2NA
REGISTERED AUDITORS
Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX
PRINCIPAL BANKERS Barclays Bank
1 Churchill Place
London
E14 5HP

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WESTMINSTER THEOLOGICAL CENTRE TRUSTEES’ REPORT YEAR ENDED 31 JULY 2023

The Board of Trustees of Westminster Theological Centre has pleasure in presenting their report and consolidated financial statements for the year ended 31 July 2023.

The financial statements have been prepared to comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102)).

Executive Summary

WTC is an interdenominational, charismatic theological college with a vision to bring together rigorous theology and the vibrant life in the Spirit. WTC’s goal is to serve the UK church - catalysing personal and community transformation by equipping and empowering people of all ages and backgrounds for leadership, mission, and discipleship. We do this by making rigorous, academic theology accessible to the whole people of God. While our student body represents many denominations, the majority are members of independent churches and networks.

We continued to invest in this vision throughout the year, with students experiencing transformative teaching and learning experiences. This academic year was especially eventful for us as we instituted a significant review of operations and established a Strategic Plan for the coming five years (2022-2027). Reflecting our goal of using this as a year of investment, we had a £29,298 annual deficit. This has set us up for future growth in senior faculty with the appointment of our first Vice Principal and student engagement through a newly offered Foundations in Theology Course launched in the autumn of 2023.

Structure, Governance and Management

Westminster Theological Centre (“WTC” or “the Company”) is a charitable company limited by Guarantee and governed by a Memorandum and Articles of Association dated 31 January 2008, modified by resolution dated 2 July 2009. The Mem and Arts were updated again in May 2013 with the cessation of the New Wine Partnership. The Company was incorporated on 18 February 2008.

The number of Trustees must be between three and twelve and are appointed in accordance with the Articles of Association. The Trustee body embraces a broad variety of skills and new Trustees are considered in the light of their ability to contribute to the work of WTC and must subscribe to its values. All Trustees are active Christians.

The Board (https://wtctheology.org.uk/people/board/) consists of six Trustees, three men and three women, who oversee a Senior Executive Team comprising the Principal, Vice-Principal, Chief Operating Officer and Finance Director.

The current Trustees bring a wide range of experience across church life and leadership, corporate and third sector professional expertise, and the practical outworking of their faith in this country and internationally, as well as their networks to the WTC Board. Of the current Trustees, four are current students or alumni of WTC. Laurence Singlehurst left the board in March 2023 and was replaced by Nigel Langford as Chair. Sarah Hunter is the most recent Trustee to join the Board, in June 2023.

The Trustees are non-executive and are responsible for setting the broad policy and strategic parameters within which WTC operates. The Trustees delegate the day-to-day running of WTC to the Senior Executive Team. The Board and Senior Executive Team together agreed the aims and objectives of the current five year Strategic Plan for WTC (2022-27), and strategic plan indicators are monitored and reported to the Board every six months.

To support the effectiveness of the Board and make the most effective use of Trustee skills and experience, the Trustees established three Committees in 2022, which report to the Board and refer decisions to the Board for ratification. These Committees oversee (i) Finance, Audit and Risk; (ii) Senior Appointments and Remuneration; (iii) Networking and Fundraising. The Board

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WESTMINSTER THEOLOGICAL CENTRE TRUSTEES’ REPORT YEAR ENDED 31 JULY 2023

_________________ has also created an Equality, Diversity and Inclusion group to lead on WTC’s strategic aim of performing well in these areas.

All Trustees give of their time freely. No Trustee received remuneration for their role as Trustee. Details of Trustees’ expenses and related party transactions are disclosed in note 15 to the

For the academic year 2022-2023, 30 external Faculty members taught part-time with WTC. For details of the Faculty, see https://wtctheology.org.uk/people/faculty/. We intentionally draw the best faculty available from around the world who combine academic rigour with the practice of faith. Most of our faculty are based in the UK, but we have faculty from Europe, North America, and Australia. In line with the Strategic Plan, WTC performed a search for a Vice Principal to expand faculty leadership at a senior level. Prof Ben Blackwell was appointed to this role and took up the position in August 2023.

On 5th August 2020, a consulting arm of WTC, ‘WTC Consulting Ltd’ was incorporated with the sole aim of generating income through consulting activities, primarily the licensing of the College Data Management System (CDMS).(https://wtc-consulting.co.uk/), All profits from WTC Consulting Ltd will be paid to WTC to reduce the deficit between the cost of providing courses and income from student fees. A separate Board of Directors has been established for the company. The subsidiary’s first external client signed a Licence and Support Agreement from June 2021 for five years.

Objectives and Activities

The main objectives of WTC are:

To meet these objectives WTC offers a range of part-time undergraduate and postgraduate programmes, accredited by Chester University (until August 2023) and Birmingham Newman University (for those students enrolling after August 2023).

WTC is an innovative, dynamic and growing theological college, with a unique constituency in the UK. While our students are drawn from many church denominations, our primary constituency is the independent, charismatic, church sector, which has no dedicated theological college in this country. This, combined with our highly accessible delivery medium, means that WTC attracts many students who would otherwise not study degree-level theology.

The academic programmes are delivered through a combination of residential teaching blocks and weekly study in local learning communities, or ‘Hubs’. The Hubs are hosted by visionary local churches which share WTC’s goal of resourcing their regions with deep and rigorous theological study. Currently, there are 13 Hubs across the UK, including one each in N. Ireland and Scotland.

WTC students include both church leaders and members, drawn from a very wide range of age, professional and education backgrounds. They study around their existing work, life and church commitments, remaining in their home locations yet avoiding the isolation of traditional distance learning.

WTC is a values-led institution, with accessibility to our programmes being a core value. This means that fees are kept relatively low, making study accessible to students from a range of economic backgrounds. At the same time, the Board and Senior Executive Team are fully committed to ensuring that WTC continues on a firm and sustainable financial footing. This means that our Board and Senior Executive Team are proactive and innovative in pursuit of increased student numbers, and diversification of other income streams to cover the two in-house bursaries, and the balance of college running costs.

As well as accessibility, we make it possible for students to achieve academically at

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WESTMINSTER THEOLOGICAL CENTRE TRUSTEES’ REPORT YEAR ENDED 31 JULY 2023

_________________ university level through the provision of outstanding study skills and learning support. Having the confidence to begin and continue a university programme can be an issue for students who may never previously have studied at this level, or who studied at university decades ago. To address this, WTC has developed and makes available to every student outstanding study skills resources and learning development support. As well as online resources, individual and group meetings with the Learning Development Tutor are regularly available to WTC students. We know from student feedback that these resources and the support provided have been life-changing for many students, enabling them to achieve at a much higher level than they have previously done academically.

Efficiency and effectiveness are also key operational values, and have resulted in WTC developing a tailored and continuously enhanced data management system which provides the backbone of all the college’s operations and processes and student information system, keeping staff overheads low while freeing up staff time to focus on providing a personalised student experience in which every student is valued and affirmed.

Achieving our Goals

Student satisfaction and evaluation

WTC’s vision is to integrate the best of scholarship with the power and gifts of the Holy Spirit to effect personal and community transformation by equipping, healing and releasing God’s people of all ages and backgrounds for mission and discipleship.

The extent to which WTC is accomplishing its vision is best captured by student and alumni feedback.

WTC conducts periodic alumni surveys. Results from the 2022 survey include:

100% of WTC students reported satisfaction with their WTC programme of study in response to the University of Chester partner survey of June 2023

Student videos and testimonies highlight the difference which studying with WTC has, and continues, to make to them as individuals, as well as to their lives and work:

“WTC is a place of complete restoration, of recreation and a completely new way of thinking about the world and where you work…[studying] equips [you] with God’s word and God’s presence to carry it into the places that you are every day…and empowers you to be yourself wherever you are…It’s the best choice you could ever make.” (GradDip graduate/senior corporate manager)

“WTC has changed my life in so many ways...WTC has opened a way for education to be a part of me and it’s absolutely transformational”. (BA student/chef)

“When you get to my position [in church leadership for 40 years], it’s good to continue the journey of becoming a lifelong learner. You can ask the question, ‘Do I really have the time to study?’ [Rather than asking] ‘Can I afford the time?’ I would say can you afford not to? What happens as you study brings alive God’s word and brings a fresh sense of vision. It’s been important for me to maintain my ability to coach and lead. Studying with WTC has helped keep me on the cutting edge.” (GradDip and MA student/senior church leader).

“WTC is one of the best things that has happened to me, I’m definitely not the same person now as I was before.” (GradDip student/businesswoman).

“This is the first place I have studied where I have not been made to feel stupid. The Study Skills Resources are outstanding.” (GradDip student/community worker).

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_________________ “WTC has been so good; they have treated me as an individual.” (GradDip student/church leadership team)

In addition to student and alumni feedback, WTC systematically captures student evaluations of each module and of Hub communities and Hub Director performance which informs our culture of continuous improvement and learning on how we operate.

WTC reach across the UK

Our closest partnerships are with our Hubs (https://wtctheology.org.uk/locations/). Our Hub partnerships are at the core of WTC and how it functions. As well as serving as the location for a WTC Hub where all our students from that region gather weekly to support each other and study together, the Hub partners act as advocates and champions of WTC within their churches/centres, among their networks, and across their regions. Each of our Hubs brings something unique to the makeup of WTC, and at the heart of the partnership is a shared vision for educating and training the church, resourcing a region, and building up the body of Christ.

WTC has also established relationships with several major independent church networks across the UK, for which WTC is the recommended validated provider for their leadership and training programmes.

Partnering with WTC benefits a church, centre, or group of churches in a number of ways, including putting education and training for all at the heart of church and helping to build a culture where church leaders and members are able to access life-giving theology, equipping everyone who studies with greater confidence for all aspects of their life, work and faith. It also enables those in leadership to train upcoming church leaders through the rigorous study of theology in a context that will strengthen their faith, build their knowledge, and equip them with skills for leadership, teaching, and training others. A partnership with WTC also enables churches with the vision to be resourcing churches for their regions.

One of the great advantages for churches is that all our courses are part-time, and therefore study is accessible for busy people around their other work and family commitments while staying rooted in their churches throughout their studies, with the churches benefitting from their learning from day one. 80% of WTC students work while studying.

Fundraising and Financial Sustainability

Student recruitment and numbers

Student fee income makes up 70-75% of our income and increasing student numbers is therefore key to WTC’s long term sustainability. The academic year 2023-24 has seen the college’s highest ever total student numbers.

In the year ended July 2023, WTC had 227 students (2021-22: 238; 2023-24: 273). In 2022-23, 63 (2022: 59) undergraduates, and 10 postgraduates (2022: 9) completed their studies.

In September 2023, WTC launched a fully online, one-year, level three Foundations in Theology Course, making it possible for students outside the UK to study with WTC, and for those who wish to start at a pre-university level, or who haven’t time to study at degree level, to learn with WTC. The Foundations Course has had an encouraging start with 57 students. As well as making deep theological study more widely available, we see the Foundations Course as one effective strategy for recruiting students to WTC’s validated programmes.

WTC also continues to host WTC Resource (www.wtctheology.org.uk/wtcresource), a set of free, online, theology resources available to individuals, groups and churches. Over 5,300 individuals have accessed WTC Resource. WTC Resource is another channel through which people experience learning with WTC, and every year, students join our accredited programmes who have engaged with WTC Resource.

Theodisc (https://wtctheology.org.uk/theodisc/) is WTC’s podcast which was established in autumn 2022, and which also continues to raise the profile of WTC as a unique and innovative provider of theological education in the UK. In addition our Faculty publish articles and books,

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_________________ both in the UK and internationally and engage with other PR outlets, taking the opportunities provided to encourage listeners/readers to study.

Non-fee income

Each financial year, the budget includes an expected annual fundraising total, setting a target for the Board and Senior Exec team. Donations/grants are received from individuals and a number of trusts who support the college's objectives. While the overall aim continues to be to reduce the percentage of our income required from donations to cover running costs as the level of student fee income increases with rising recruitment, we anticipate continuing to fundraise over the long term to be able to offer more bursaries in line with our strongly held value of making our programmes accessible to as wide a range of students as possible.

Individual donations and trust fund grants continue to be important sources of fundraising. Individual donations range from small monthly standing orders (by students and alumni) to multi-year commitments as part of our Patron scheme, by which donors commit a minimum of £5,000 each year for a minimum of three years. Multi-year funding pledges mean that we begin each academic year with a significant donation total already committed. In addition, a small number of trusts give significant amounts to both our general running costs, and to specific projects including our Principal’s Bursary Fund which offers up to 90% fee bursaries to those with a recent history of offending and/or addiction. We also continue to strengthen alumni relations, encouraging those who can to become donors.

Fundraising is the responsibility of the Principal and COO. They approach those known to us who support WTC and ask them if they would consider donating or committing to our Patron scheme. We also write and submit trust applications both for general funds and for specific projects to trusts we believe may be sympathetic to allocating funds to WTC.

The charity has not formally subscribed to fundraising standards, schemes or a regulatory body for fundraising. At the same time, everything WTC does is informed and done in alignment with our management values which include transparency and effectiveness. Our donors all know WTC, most have studied with us and are aware of the college’s ethos and ways of working. We stay in regular contact with our donors, upholding all reporting requirements from trusts, and keeping individual major donors updated on forthcoming projects and the impact of their donations. During the year the charity received 0 (2022: 0) complaints about its fundraising activities and did not use any third parties to raise funds.

The Foundations in Theology Course will generate income from 2023-24 as will other new academic offerings which the college is providing for the first time in 2024, including teaching days with leading theologians for which a charge will be made.

During the year the subsidiary (https://wtc-consulting.co.uk/) continued to market consultancy services to potential clients.

Review of Operations for the year

During the year, WTC has maintained close relationships with all its Hub churches and the networks and churches from which WTC students are recruited to study. The focus of events between January and August is student recruitment.

WTC has a strong programme of online and in-person events at both national and regional levels in support of student recruitment. The audience for these is both church and church network leaders who recommend their leaders and members to study theology, as well as potential students themselves.

Our operational overheads remain low as a result of high levels of efficiency, with a staff team of 19 (12 FTE) running the college.

Financial Review

The consolidated group result is a deficit of £29,298 in the year to 31st July 2023 (2022: surplus of £88,846). The principal source of income was student tuition fees, totalling £771,158 (2022:

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WESTMINSTER THEOLOGICAL CENTRE TRUSTEES’ REPORT YEAR ENDED 31 JULY 2023

_________________ £761,404), supplemented by donations of £207,901 (2022: £239,653 ), trading income of £30.000 (2022: £24,610) and other income of £25,090 (2022: £48,510). Total costs of £1,063,447 have increased from the previous year (2022: £985,331) mainly due to cost of living salary increases, the recruitment of more staff, and extra travel and residential expenditure. WTC continues to rely on donations to fund the operating gap between net student fees and operational costs and increasing the number of donors is a Strategic Plan objective. Cash flow has been closely managed by our Finance Director.

The Principal’s Bursary fund (PBF) was launched in 2015 to enable those with a history of offending or addiction to study with us – many of whom would be unable to afford the fees without assistance. This year 8 people have benefitted from the Principal’s Bursary. A restricted reserve of £25,735 is carried forward as at 31 July 2023 (2022: £21,890) for this purpose and is being used to fund students in the academic year commencing September 2023. Any remaining balance will be used in future years.

The Trustees review operational and external risks annually in connection with running the Company’s operations and the mitigation of significant risks. They have identified recruitment of sufficient students and ability to raise donations as the primary risks.

Our operating model is lean, and we have strong relationships with our partner churches and our donors. Based upon WTC’s strong fundraising history and growing network of donors, the Trustees are confident that the company will have sufficient funding to cover the financial year 2023-2024. Accordingly, these financial statements have been prepared on a going concern basis.

In September 2016, we opened a pension fund, administered by NEST. The terms are more favourable than the minimum required under the auto-enrolment provisions and were further enhanced in September 2017.

Post balance sheet events

In common with other theological colleges, we are reliant on gifts and donations to supplement student fee income. The budget for the year to July 2024 highlights that £94,000 extra funding is required to maintain current reserve levels into the next financial year. The Trustees fully expect the funding gap to be met in line with WTC’s history of raising funds. A fundraising event is planned for July 2024 with Dr Tim Mackie, co-founder of The Bible Project, which will make a significant contribution towards our target.

In the 23/24 academic year developments to enhance CDMS have continued, notably regarding HESA reporting This is a core feature for WTC Consulting current and future clients as well as for WTC. Currently conversations are ongoing with a number of theological colleges which are considering licensing the CDMS.

The Board of Trustees has made the decision for WTC to apply for Office for Students (OfS) registration so that our students can access government student finance. To date WTC has received actual and pledged funding of £70,000 towards covering the costs associated with registration.

Related Parties

There are no related parties other than the Trustees and WTC Consulting Ltd.

Reserves

The Charity has one charitable activity, namely the provision of theological education. The Group includes the Charity and its subsidiary WTC Consulting. Any surplus income over expenditure through consulting activities, will all be gifted to WTC to reduce the deficit between cost of providing courses and income from student fees. The Trustees have determined that, for the foreseeable future, any positive reserves will be accumulated and retained to finance the Charity’s growth. A key target for the Trustees for the current year is to maintain the 31 July 2023 positive balance on the general fund for the year ended 31 July 2024. General fund reserves decreased by £28,003 to £92,710 over the year to 31 July 2023. In the longer term WTC will aim to

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WESTMINSTER THEOLOGICAL CENTRE TRUSTEES’ REPORT YEAR ENDED 31 JULY 2023

_________________ build up general reserves over the following three years to a minimum of 3 months of staff salary plus full year Faculty pay and marking costs.

Statement of Trustees’ responsibilities

The Trustees, who are also the Directors, are responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, of the Charity for that period. In preparing the financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Charity deed. They are also responsible for safeguarding the assets of the Charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the Charity and financial information included in the Charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.

Statement as to Disclosure to our Auditors

In so far as the Trustees are aware at the time of approving our Trustees’ annual report:

Small company exemptions

In preparing this report the Trustees have taken advantage of the special provisions relating to small companies within Part 15 of the Companies Act 2006.

Signed on behalf of the Trustees

18/2/2024

…………………………………… ……………………………………. Chair Date N LANGFORD

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WESTMINSTER THEOLOGICAL CENTRE INDEPENDENT AUDITORS’ REPORT YEAR ENDED 31 JULY 2023

Opinion

We have audited the financial statements of Westminster Theological Centre for the year ended 31 July 2023, which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated Statement of Cash Flows and the 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 Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (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 auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 Trustees’ 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 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.

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WESTMINSTER THEOLOGICAL CENTRE INDEPENDENT AUDITORS’ REPORT

YEAR ENDED 31 JULY 2023

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Trustees' Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

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

Responsibilities of Trustees

As explained more fully in the statement of Trustees’ responsibilities set out in the Trustees’ annual report, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the 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 the aggregate, they could reasonably be expected to

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

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

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

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WESTMINSTER THEOLOGICAL CENTRE INDEPENDENT AUDITORS’ REPORT YEAR ENDED 31 JULY 2023

_________________ description forms part of our auditor's report.

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 and trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

………………………………………………….

Scott Lawrence FCA (Senior Statutory Auditor)

………………………… 19/02/2024 Date

For and on behalf of Hazlewoods LLP Statutory Auditor Cheltenham GL51 0UX

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WESTMINSTER THEOLOGICAL CENTRE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 JULY 2023

Statement of Financial Activities (including Income and Expenditure account)

Notes Un-restricted Restricted Total 2023 Total 2022
Funds Funds
£ £ £ £
Income from: 3
Donations 175,526 32,375 207,901 239,653
Investments 3,050 - 3,050 42
Charitable 771,158 - 771,158 761,404
activities
Trading income 30,000 - 30,000 24,610
Other income 21,448 592 22,040 48,468
Total income 1,001,182 32,967 1,034,149 1074,177
Expenditure on: 4
Direct costs (750,897) (33,670) (784,567) (755,242)
Administration (278,288) (592) (278,880) (230,089)
costs
Total (1,029,185) (34,262) (1,063,447) (985,331)
expenditure
Transfers - -
Net movement (28,003) (1,295) (29,298) 88,846
on funds
Total funds b/fwd 120,713 53,934 174,647 85,801
at 1 August
Total funds
c/fwd at 31 July 14 92,710 52,639 145,349 174,647

The statement of financial activities includes all gains and losses in the year All the above amounts derive from continuing activities.

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WESTMINSTER THEOLOGICAL CENTRE

CONSOLIDATED AND PARENT CHARITABLE COMPANY BALANCE SHEET YEAR ENDED 31 JULY 2023

Company Registration Number: 06506007

Balance Sheet

Balance Sheet
Group Charity
2023
2022		 2023 2022
Notes £
£		 £ £
FIXED ASSETS
Tangible Assets 8 -
-		 - -
Investment 9 -
-		 100 100
CURRENT ASSETS
Debtors 10 69,030
79,377		 113,621 105,593
Cash at bank and in hand 245,063
300,565		 223,737 298,326
314,093
379,942		 337,358 403,919
NET LIABILITIES:
Creditors and accruals 11 (168,744)
(205,295)		 (167,021) (204,515)
NET CURRENT ASSETS 145,349
174,647		 170,337 199,404
NET ASSETS (LIABILITIES) 145,349
174,647		 170,437 199,504
FUNDS OF THE GROUP
Unrestricted Funds
General 92,710
120,713		 117,798 145,570
Restricted funds 14 52,639
53,934		 52,639 53,934
145,349
174,647		 170,437 199,504

The Trustees have prepared group accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with FRS 102 SORP.

As permitted by section 408 Companies Act 2006, the parent charitable company's statement of financial activities has not been included in these financial statements. Its deficit for the financial year was £29,067 (2022 – surplus of £104,710).

18/2/2024

The financial statements were approved by the Trustees on ………………………………… and signed on its behalf by:

................................................................. Chair

N LANGFORD

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WESTMINSTER THEOLOGICAL CENTRE

CONSOLIDATED STATEMENT OF CASH FLOW YEAR ENDED 31 JULY 2023

2023 2022
£ £
Cash used in operating activities (from below) (55,502) 193,404
Cash fows from investing activities:
(Increase) / decrease in value of fxed asset - -
investments
(Decrease)/increase in cash and cash equivalents (55,502) 193,404
in the year
Cash and cash equivalents at the beginning of 300,565 107,161
the year
Cash and cash equivalents at the end of the 245,063 300,565
year
RECONCILIATION OF NET MOVEMENT IN
FUNDS TO NET CASH INFLOW FROM
OPERATING ACTIVITIES
Net movement in funds before gains / (losses) (29,298) 79,953
Decrease in debtors 10,347 16,455
(Decrease) / increase in creditors (36,551) 96,996
Net cash used in operating activities (55,502) 193,404

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WESTMINSTER THEOLOGICAL CENTRE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2023

_________________ NOTES

1. ACCOUNTING POLICIES

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Westminster Theological Centre meets the definition of a public benefit entity. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b) Basis of consolidation

The consolidated financial statements consolidate the financial statements of the Charity and its subsidiary undertaking drawn up to 31 July 2023.

A subsidiary is an entity controlled by the Charity. Control is achieved where the Charity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group. Inter-company transactions and balances, between the Charity and its subsidiaries, are eliminated in full. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

c) Going concern

As mentioned in the Trustees’ Report, in common with other theological colleges, the charitable company is reliant on gifts and donations to supplement student fee income. As at the time of approving these financial statements, donations sufficient to cover a full twelve months of net expenditure have not yet been fully raised. Whilst some uncertainty remains, the Directors consider it likely that the funds needed over the next 12 months will be raised. Accordingly, the Directors have prepared these financial statements on the going concern basis.

d) Donations

Donations received for the general purposes of the charitable company are included as unrestricted funds.

Donations for activities restricted by the wishes of the donor are included as restricted funds.

Donations are accounted for when received unless a donation is receivable to which the charitable company has an absolute legal entitlement, in which case it is accounted for at the earlier of the date received or the date the absolute entitlement crystallised.

e) Student fees

Student fees are accounted for on an accruals basis. Any student fees received in advance are reflected as deferred income until the term to which they relate commences.

f) Resources expended and allocation of costs

The charity has one operational activity; the provision of further education. The majority of administrative costs are attributable to the provision of further education with any profits from the consultancy also being returned to the charity for its core activity .

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WESTMINSTER THEOLOGICAL CENTRE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2023

1. ACCOUNTING POLICIES (continued)

g) Fixed assets

Depreciation is provided on all tangible fixed assets at rates calculated to write off each asset over its expected useful life, as follows:

Leasehold improvements straight line over 3 years Computers & other equipment straight line over 3 years

h) Foreign currencies

Transactions in foreign currencies are translated into sterling at a standardised rate through the accounting period.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date, with the exchange gains and losses that arise from that being recognised in the Profit and loss account each year.

i) Leases

Rentals under operating leases are charged to the Profit and loss account on a straight-line basis over the lease term.

2. FINANCIAL PERFORMANCE OF THE CHARITY

The consolidated statement of financial activities includes the results of the Charity’s wholly owned subsidiary, WTC Consulting Limited, which operates as a consultancy undertaking including the provision and development of a College Data Management System.

As permitted by section 408 Companies Act 2006, the parent charitable company's statement of financial activities has not been included in these financial statements. Its deficit for the financial year was £29,067 (2022 – surplus of £104,710).

3. INCOME

Income from donations was £207,901 (2022: £239,653) of which £32,375 was restricted (2022: £72,037). Income from charitable activities was £771,158 (2022: £761,404), £nil of which was restricted (2022: £nil). Income from WTC Consulting was £30,000 (2022: £24,610), £nil of which was restricted (2022: £nil). Other income was £22,040 (2022: £48,468) of which £592 was restricted (2022: £18,573). Donations from Trustees totalled £19,655 (2022: £1,650) including the associated Gift Aid.

4. EXPENDITURE ON CHARITABLE ACTIVITIES

2023 2022
£ £
Provision of Courses
Staff and contractors 355,486 314,519
Residentials 184,652 170,743
Books and bought in services 1,280 1,441
Bad debt write off 2,330 -
Validation and accreditation fees 77,192 74,730
Hub fees and costs 84,927 88,552
Bursaries awarded 56,248 55,124
Interpreter Costs -
762,115		 13,625
718,734

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WESTMINSTER THEOLOGICAL CENTRE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2023

_________________ WTC Consulting Direct Costs

WTC Consulting Direct Costs
Staff and contractors 22,452 36,508
22,452 36,508
Administrative Costs
Bank charges 932 1,160
Staff 162,429 130,899
Staff training 5,969 10,397
Offce and travel 96,831 69,496
Legal and professional 12,719 18,137
278,880 230,089
TOTAL 1.063,447 985,331

£271,101 (2022: £226,123) of the administration costs are attributed to the provision of further education, and £7,778 (2022: £3,967) to WTC Consulting Ltd. Any surplus income over expenditure through consulting activities, will all be gifted to WTC to reduce the deficit between cost of providing courses and income from student fees.

Expenditure on charitable activities in 2023 was £1,033,216 of which £34,262 (2022: £944,857 of which £66,343) was from restricted funds.

5. STAFF COSTS AND NUMBERS

2023 2022
Number of Employees (Average) 17 16
£ £
Gross Salaries 395,151 368,214
National Insurance Contributions 28,595 26,220
Pension Contributions 15,361 14,436
439,107 408,870
Subcontract 87,536 66,316
526,643 475,186

The key management personnel of the Charity comprise the Principal, the Vice-Principal (recruited August 2023), the Chief Operating Officer and the Finance Director. Their total remuneration in the year was £124,683 (2022: £120.433).

No employee was paid a salary of more than £60,000 during the year.

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WESTMINSTER THEOLOGICAL CENTRE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2023

6. NET INCOMING RESOURCES FOR THE PERIOD

Net incoming resources is stated after charging: 2023 2022
£ £
Auditors’ remuneration 8,070 5,562

7. TAXATION

All income of the charitable company falls within the exemptions afforded to corporate charities and charitable trusts by Sections 478 and 479 Corporation Tax Act 2010 and Sections 524 and 525 Income Tax Act 2007 and there is no corporation tax payable by the Charity's trading subsidiary.

8. TANGIBLE FIXED ASSETS

Group and Charity Leasehold Computer/
Improvements Elec Eqmt Total
£ £ £
At 1 August 2022 7,868 17,787 25,655
Additions - - -
At 31 July 2023 7,868 17,787 25,655
At 1 August 2022 7,868 17,787 25,655
Charge for year - - -
At 31 July 2023 7.868 17,787 25,655
At 1 August 2022 - - -
At 31 July 2023 - - -

9. INVESTMENTS

2023 2022
£ £
Investment in subsidiary 100 100

The wholly owned subsidiary, WTC Consulting Ltd, is a company registered in England and Wales. It is used to operate the non-charitable activities of Westminster Theological Centre.

WTC Consulting Ltd has 100 shares of £1 in issue, which is held by Westminster Theological Centre. The results for the period to 31 July 2023 was a loss of £231 (2022: £15,864).

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WESTMINSTER THEOLOGICAL CENTRE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2023

_________________ 10. DEBTORS

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Accounts receivable 24,286 13,656 24,286 13,656
Prepayments and accrued income 44,744 65,721 43,101 58,479
Amounts owed by subsidiary - - 46,234 33,458
69,030 79,377 113,621
105,593

11. NET LIABILITIES: creditors and accruals

Group Group Charity Charity
2023 2022 2023 2022
£ £ £ £
Trade creditors 2,832 12,237 2,832 12,237
Accruals & deferred income 162,923 190,401 161,200 189,621
Other creditors 2,989 2,657 2,989 2,657
168,744 205,295 167,021 204,515

12. FINANCIAL COMMITMENTS

Group and Charity

At 31 July 2023 WTC was committed to making the following payments under non-cancellable operating leases in the year

2023 2022
£ £
Amount due within one year 7,444 3,000

The current lease has a rolling six months’ mutual break clause.

13. COMPANY LIMITED BY GUARANTEE

The company is limited by guarantee of members and does not have a share capital. The liability of members is limited to £1.

14. RESTRICTED FUNDS

The restricted funds held during the year are:

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WESTMINSTER THEOLOGICAL CENTRE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 JULY 2023

Brought Incoming Outgoing Carried
forward resources resources Transfers forward
£ £ £ £ £
Fund
Principal’s Bursary 21,890 25,395 (21,550) - 25,735
Bursaries Fund 31,544 6,980 (12,120) - 26,404
Interpreter Support 500 - - - 500
Other income - 592 (592) - -
Totals 53,934 32.967 (34,262) - 52,639

All restricted fund assets are held as current assets.

14. RESTRICTED FUNDS (continued)

Prior year comparatives:

Brought Incoming Outgoing Carried
forward resources resources Transfers forward
£ £ £ £ £
Fund
Principal’s Bursary 29,167 20,493 (27,770) - 21,890
Bursaries fund - 51,544 (20,000) - 31,544
Interpreter Support 500 13,625 (13,625) - 500
Other income - 4,948 (4,948) - -
Totals 29.667 90,610 (66,343) - 53,934

15. TRUSTEES REMUNERATION AND RELATED PARTIES

£nil remuneration was paid or waived by any trustee during the year in respect of their duties as Trustees (2022 - £nil).

Total donations made by Trustees in the year were £19,655 (2022 - £1,650) including the associated Gift Aid.

Three trustees paid the Charity fees for courses they were attending (as they are students as well as trustees) and one trustee was paid £540 (2022 – £540) for teaching services provided to the Charity. There were no other related party transactions during the year .

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