## **Members’ report and financial statements** 

## **31 July 2023** 

## **Registered number 00113496** 

## **Registered charity number 1141701** 

## **Registered Office** 

3 South Bailey Durham DH1 3RJ 

https://www.durham.ac.uk/colleges-and-student-experience/colleges/st-johns/ 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


|**Contents**|
|---|
|Report of the Members of the Council for the year ending 31 July 2023 ............................................... 4|
|Our Values .......................................................................................................................................... 4|
|Our Objectives .................................................................................................................................... 4|
|Our Finances ........................................................................................................................................... 7|
|Fundraising.......................................................................................................................................... 8|
|Reserves and Financial Health ........................................................................................................... 8|
|Designated and Restricted Funds ....................................................................................................... 8|
|Investment Policy Performance .......................................................................................................... 8|
|Structure, Governance and Management ............................................................................................... 9|
|Key Management Personnel ............................................................................................................... 9|
|Other Significant Relationships ........................................................................................................... 9|
|Durham University ........................................................................................................................... 9|
|The Church of England ................................................................................................................... 9|
|St John’s College Common Room .................................................................................................. 9|
|Risk Management ............................................................................................................................... 9|
|Council Members and Charity Trustees ................................................................................................ 10|
|Remuneration Committee ................................................................................................................. 11|
|Professional Advisors ............................................................................................................................ 12|
|Disclosure of information to auditors ..................................................................................................... 12|
|Auditors ............................................................................................................................................. 12|
|Financial Statements ............................................................................................................................. 13|
|Statement of Council Members’ responsibilities in respect of the Report of the Members of Council|
|and the Financial Statements ........................................................................................................... 13|
|Independent Auditor’s Report to the Council Members of St John’s College, Durham University ... 14|
|Statement of financial activities ......................................................................................................... 18|
|Balance Sheet ................................................................................................................................... 19|
|Cash Flow Statement ........................................................................................................................ 21|
|Notes ................................................................................................................................................. 22|
|1.<br>Accounting Policies ............................................................................................................... 22|
|2.<br>Investment Income ................................................................................................................ 28|
|3.<br>Total Fees Income ................................................................................................................ 28|
|4.<br>Commercial Business Income............................................................................................... 28|
|5.<br>Other Income......................................................................................................................... 28|
|6.<br>Net Income Before Charges Are Stated ............................................................................... 29|
|7.<br>Expenditure ........................................................................................................................... 30|



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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


|8.|Staff Costs ............................................................................................................................. 31|
|---|---|
|9.|Key management personnel (trustees) ................................................................................. 32|
|10.|Taxation ............................................................................................................................. 32|
|11.|Tangible Fixed Assets ....................................................................................................... 33|
|12.|Investment Properties ....................................................................................................... 34|
|13.|Investments ....................................................................................................................... 35|
|14.|Stock ................................................................................................................................. 35|
|15.|Debtors .............................................................................................................................. 35|
|16.|Creditors: amounts falling due within one year ................................................................. 35|
|17.|Creditors: amounts falling due after more than one year .................................................. 36|
|18.|Called-up share capital ..................................................................................................... 37|
|19.|Financial Commitments ..................................................................................................... 37|
|20.|Financial Instruments ........................................................................................................ 37|
|21.|Movement in Funds ........................................................................................................... 39|
|22.|Commitments under operating leases .............................................................................. 44|
|23.|Prior year comparatives by type of funds - Statement of Financial Activities ................... 45|
|24.|Analysis of net assets between funds ............................................................................... 45|
|25.|Related Party Transactions ............................................................................................... 46|
|26.|Contingent Liabilities ......................................................................................................... 46|



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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## **St John’s College Durham** 

## **Report of the Members of the Council for the year ending 31 July 2023** 

The Council Members who are also shareholders and directors of the charitable company St John’s College, Durham submit their annual report and the audited financial statements for the year ended 31 July 2023. The Council Members have adopted the provisions of the Statement of Recommended Practice: ‘Accounting & Reporting by Charities’ (SORP FRS 102) effective 1st January 2019 in preparing the annual report and accounts of the company. 

## Our Values 

St John’s is a College with a rich heritage, open to all, providing a distinctive Christian perspective and environment in Higher Education and seeking to develop vocation in all. 

## We are committed to: 

- nurturing excellence and aspiration in research, education and the formation of the whole person 

- training church leaders in theology and ministry 

- being a College within Durham University, recognising both our independence and interdependence 

- valuing our location in the North East of England 

- using our finances responsibly and wisely, and ensuring our buildings provide a safe and comfortable environment 

- valuing people as our primary resource, and building a rich community life 

- communicating knowledge and learning to society 

- embodying and working for social justice 

- being one College, finding strength in the dynamism of undergraduate and postgraduate education, ministerial formation and research initiatives. 

Our values are shaped by the Christian heritage which is our foundation. These values form four particular aspirations which shape our common life: 

- Learning – in every sphere of life; wisdom, research, formation, skilfulness and artistic creation. 

- • Excellence – aspiring to be the best we can be in all that we are and do, to the greater good and the furthering of the College. 

- Justice – seeking fairness in the personal, institutional, societal, and academic spheres. 

- Hospitality – valuing others, respecting them, and seeking to live in generosity and welcome. 

## Our Objectives 

The College’s aim is to be a community of learning in which people flourish together abundantly for life, service and leadership in church and society.  Public benefit is seen in a variety of ways: 

- Conferences and lectures for the public on a variety of topics, academic and spiritual 

- Concerts and theatre productions 

- Involvement of students and staff in a number of projects throughout the North-East and the world, for example fundraising and visits for a primary school in the Rokon Diocese in Sudan 

- Placement of Cranmer and Free Church students in churches and chaplaincies throughout the North East 

- A senior common room which brings together academics, church leaders and community leaders in the North East. 

The College has adopted the following strategic priorities, which informed the College’s objectives for 2022/2023: 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


- ➢ To make a distinctive contribution as a College of the University in fostering transformational teaching, learning and research, together with investing in the personal formation and sense of vocation in life and work of all students and staff. 

- ➢ To engage and celebrate values of Equality, Diversity and Inclusion, critically reflecting on and drawing on our Christian tradition and other contemporary and historic resources, so that these values are fully embodied across the life of the whole College. 

- ➢ To serve God’s mission in the changing contexts of the UK and beyond through creative theological and practical resourcing of people preparing for, and undertaking, Christian ministry and leadership. 

- ➢ Within a commitment to future generations, to invest in the historic estate of our Bailey buildings, delivering continued compliance, increased accessibility and our desired carbonneutral use of the College buildings by 2030. 

- ➢ Recognising the financial loss associated with Covid, to review our financial model to ensure long-term financial sustainability. 

- ➢ To continue the development of our staffing model and culture, to ensure that they are flexible and fit for purpose, able to respond to new opportunities. 

## **Review of Activities 2022-2023** 

## John’s Hall 

The college’s achievements during the year are marked by student matters (recruitment and placement numbers) and a number of events that support the breadth and depth of education and formational experience offered by the college community. 

University examination results in the last two years are as follows: 

||**1st**|**2.1**|**2.2**|
|---|---|---|---|
|_2023_|33%|52%|8%|
|_2022_|48%|45%|6%|



A number of the University students who performed well in their examinations also held responsible College posts or took on demanding extra-curricular roles, a fact which is testimony to the quality of students which the College attracts and to the vibrant culture of the community. 

The College offers a wide range of opportunities for work experience and personal development for students, from paid work in the College bar, conference assistants, library shelving assistants, casual catering staff, to internship roles. During the year we worked to streamline our internships and work opportunities, ensuring the range of these are cohesively communicated to both applicants and current students. 

Following a successful appeal to alumni and friends of the College raising 25k within a week, we launched a fund for accommodation scholarships for students from first generation, BAME and lower income backgrounds. 

Under our Research Forum, a full and varied programme of interdisciplinary research seminars is now held within the College involving students and staff. The College continued to host a variety of visiting fellows from many different parts of the world and many different subject areas. 

The College started a series of career themed formals bringing together alumni, staff, SCR members and current students together to network and share career advice and experiences. These events provided a useful platform for raising the profile of the College within the University and in the region, enabling us to connect with academic and professional staff across the University and with key regional stakeholders, as well as providing important enrichment opportunities for the students involved in their organisation. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


2023 was the 50th anniversary since the first admission of women at St John’s. We celebrated this milestone with a series of events and projects, including an alumni reunion for the first cohort of women from 1973 and 1974, an article and portrait series, and a panel conversation on women in leadership. 

## Cranmer Hall 

During this year Cranmer Hall supported the formation of 45 Anglican ordinands through a rich programme of learning and practical ministry located in the North East of England. Throughout the year Cranmer students continued to engage with issues relating to the world church. The College continued to deliver excellent teaching across its three programmes (BA, MA, and DThM), and staff are active in speaking and research across a range of academic and ecclesial networks. 

The Relay Trust continues to be significant partner funding at least 10 full-time equivalent bursaries a year for students and two staff posts at Cranmer Hall. The additional staffing has enabled us to run Growing Leaders courses for churches across the region, while the bursaries have supported the growth of our Free Church Track (30 students, the majority part-time). 

## Research Centres 

Following the successful completion of a four-year project in Equipping Church Leaders in an Age of Science funded by the Templeton World Charitable Foundation, the Principal and collaborators from York University and the Church of England were awarded a further £3 million three-year project on the same theme but this time funded by the Templeton Religion Trust. The project, which was due to end in December 2022 was extended to June 2023 in recognition of the constraints imposed by the pandemic, particularly in delivering conferences. This project is proving very fruitful being recognised both nationally and internationally for its success and supports the strategic aim to be a research active and research supportive community. In the financial year the project moved into a new five stage which is funded by the John Templeton Foundation from April 2023 to December 2027. The Centre for Church Planting Theology and Research moved from pilot phase to full operation, thanks to a 2-year grant from the Sir Halley Stewart Trust which has supported the Cranmer lecturer in mission to step up as halftime centre director, producing empirical and theological research into the practice of church planting. 

## **Future Plans** 

## John’s Hall 

Staff will continue to work with student leaders in the St John’s Common Room on student enrichment activities, including volunteering and outreach, sports and societies, music and drama and career themed events. 

We plan continue to hold public outreach events and open days following an inaugural “Secret Gardens of St John’s” open day and World Heritage Open Days. 

We see student recruitment and widening participation as a strategic priority and will continue our outreach and recruitment activities with local sixth forms and other organisations. 

## Cranmer Hall 

In March 2024 Cranmer will have its Periodic External Review, led by the Church of England’s National Ministry Team and Durham University’s Common Awards. The continuation of the Relay Bursaries should enable us to support students with the equivalent of up to 30 full-time bursaries next year, and staffing, structural, and cultural changes will be needed to allow for the changing shape of the student body. We are looking to cement the place of our postgraduate programmes, the MA and the DThM, as sector-leading examplars of excellent teaching and research. From our current status as a learning hub for the Church of England’s Growing Faith initiative (focussed on children and young people), we hope to explore possible development of a pathway for training children’s and young people’s ministers. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


Finance and Operations 

## Leech Hall Redevelopment – Renewing the Heart of the College 

One of the key elements of the five-year Estates Strategy 2022-2027 included one significant Capital Works Project, with the following aims: 

1. Creating an aesthetically outstanding large central multiuse space in college comparable in standards to the LRC and Haughton dining room spaces. 

2. Creating an additional covered multi-use and transit space in the current courtyard and Bowes dining room areas that would facilitate a break-out area, café-study culture and meeting area. 

3. Creating a facility that can support excellent teaching, corporate worship, WSE and large public lectures. 

4. Improving the accessibility of college by redeveloping the Crossroads entrance into college, readdressing issues around disparate floor levels, improving the accessibility of doorways, providing accessible toilets and creating an accessible link to Haughton house and dining room. 

5. Improving Scope 1 and 2 emissions by delivering a solution that uses alternative forms of heating, e.g. air source heat pumps, has improved energy efficiency and if possible includes the installation of solar panels. 

Following consultation and work with the appointed architects, GSS Architecture, RIBA stage 2 was reached in the period 2022/2023. These plans will continue to be developed through the period 2023/2024 and a fundraising campaign implemented for the £2.7 million planned project. 

## **Our Finances** 

Fee income for the year increased by 3% to £3,968,553 on the previous year’s figure £3,867,043. The majority of the increase in income is due to a higher number of students in residence and an increase in the number of independent Cranmer students paying tuition fees. 

Commercial business income increased significantly on the previous year, reflecting the restart of conferences and events following the pandemic. 

The movement on unrestricted general funds before transfers amounted to a net inflow of £433,567 (2022: net inflow of £662,637), on designated and restricted funds before transfers an outflow of £772,237 (2022: £206,198). Before transfers, the endowment funds amounted to an outflow of nil (2022: £nil) giving a total outflow for the year of £338,670 (2022: £868,835). 

Fixed assets have fallen to £21,447,647 (2022: £22,281,836), this reflects a revaluation of the investment property and the College estate as well as annual depreciation charges. With regards the revaluation of the investment property a new surveyor was instructed to undertake the valuation. They provided an opinion that was significantly lower than the valuation offered by a different surveyor the previous year. This valuation was an opinion of the present open market value of the freehold interest in the property with full vacant possession which also gave consideration to the freehold interest based upon the capitalisation of the rental income. This valuation was prepared in accordance with the _Royal Institution of Chartered Surveyors Valuation – Professional Standards (January 2014 edition, together with a 2019 supplement)_ . A combination of different prevailing market conditions (general economic situation, military conflict in eastern Europe and difficulties with manufacture, supply and the labour market) and a difference of professional opinion compared with the previous valuer, has resulted in significant difference in value. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


Cash at bank and in hand has risen to £3,523,024 (2022: £3,153,612) which includes cash received from Templeton Religion Trust and John Templeton Foundation to fund two of the Colleges major research projects. 

Creditors due within one year have fallen to £357,441 (2022: £843,384) reflecting loans repaid in the period and ensuring suppliers were paid in advance of the migration to Sage 200. Creditors due after more than one year have fallen to £2,182,957 (2022: £2,882,063 reflecting loan repayments made during the year. 

A number of deposits from external conference organisers were held as advance payments for conferences planned to be hosted in College, this amounted to £6,750. 

## Fundraising 

The College raises funds to support capital and research projects as well as creating student opportunities through scholarships and bursaries. These come from a range of sources including grants from trust and foundations and donations and legacies from alumni and friends of the College. The College has not used external fundraisers during the year. A new Alumni & Development Strategy for 2022-27 has been produced, with key fundraising areas including specific estates projects, a legacy campaign and supporting student opportunities through scholarships and bursaries. A Gift Agreement is in place for all major gifts. 

## Reserves and Financial Health 

The St John’s College Reserves Policy states that the appropriate level of free reserves is 10% of budgeted expenditure and that this should be held in an accessible investment meeting the criteria of the Investment Policy. A figure of 10% is appropriate because this roughly accords with the level by which student numbers could be at variance from predicted in normal circumstances. For the year ended 31st July 2023 10% of budgeted expenditure was £362,603. At 31st July 2023, the level of free reserves, being unrestricted funds not held in fixed assets or related long-term borrowing, amounted to £1,351,439. The surplus of free reserves against target reflects the policy of only committing to essential expenditure during a period of post pandemic uncertainty. 

## Designated and Restricted Funds 

The Audit Committee supervises and monitors, on behalf of Council, the administration of the designated and restricted funds entrusted to the College. There were 31 restricted funds and 5 designated funds at the end of July 2023 (2022: 33), with a total value of £5,534,503 (2022: £6,056,740). 

49% of the restricted funds are held in independently managed units in the CBF Church of England Investment Fund. The value of these units decreased by 2% during the year and yielded a dividend of 2.8%. The balance is held as cash. 

The legacy income in designated funds is represented by investment property held in a bare trust on behalf of the joint legatees, with the balance being held in interest bearing deposit accounts. 

## Investment Policy Performance 

The College’s aim in investing funds is to protect and if possible, increase assets in trust while maximising overall return and operating within the agreed ethical policy. The balance of capital growth and income generation should be toward income. 

The risk acceptable to the College is medium. The aim should be to preserve the capital if possible, and the trustees recognise that avoidance of risk may cap return. Risk reduction will usually mean investing in pooled funds, along with other charities, managed by independent fund managers with a good reputation and record of accomplishment. The choice of fund will usually show wide diversification (within ethical criteria) and will avoid investments in specific market segments (that might have higher ethical credentials but may also carry higher risks). 

The College’s view on ethical investment is that all investments should comply with the Church of England’s Ethical Advisory Group guidance. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## **Structure, Governance and Management** 

## Key Management Personnel 

The Principal is responsible to the College Council, together with the other College Officers, for the dayto-day management of the college. The Principal during the year was the Revd Professor DA Wilkinson, the Warden was the Revd Canon Dr PJJ Plyming, the Vice Principal was Dr R Bouveng, the Finance & HR Director was Mrs A Cook until December 2022, and the Operations Director was Mr C Courtman until December 2022. From December 2022 Mr CE Courtman undertook the role of Finance and Operations Director. 

The Warden is primarily responsible for the operation of Cranmer Hall and the Vice Principal for undergraduate and postgraduate matters, the Finance & HR Director for the professional and support services within the College and the Operations Director for all operational matters outside the student academic and formational operations. The latter two roles and responsibilities were combined in the role of Finance and Operations Director. 

## Other Significant Relationships 

## Durham University 

Durham University recognises St John’s College, and the relationship is governed by a Memorandum of Understanding. Students who are members of St John’s College are students of the University, and students studying within Cranmer Hall are awarded Durham University degrees under Common Awards. 

## The Church of England 

The first purpose listed in the College’s governing documents is the education and training of candidates for Holy Orders in the Church of England and the second being ‘general education’ at Durham University. This is reflected in the proportion of revenue derived from fees paid by the Dioceses of the Church of England to fund the tuition, formation, and residential fees of students within Cranmer Hall. 

## St John’s College Common Room 

St John’s Common Room (the ‘SJCR’) is a students' union and a registered charity, which encompasses the Middle and Cranmer Common Rooms. The relationship between the SJCR and the is governed by a Memorandum of Understanding. 

## Risk Management 

The College has a comprehensive process to identify, assess, mitigate, and monitor risk. 

This has produced a risk register for the College. College Officers regularly review the risks identified and the controls in place to mitigate these. Audit Committee, on behalf of Council, oversees this process. 

During 2022/2023 the principal risks and uncertainties were identified and assessed in the following areas: 

- Health & Safety 

- Student Mental Health 

- Financial Systems 

- Unforeseen large-scale disruptive external economic event - 

- Student Recruitment – Johns 

- Capital Works Project 

- Allegations of Discrimination, Misconduct and Safeguarding 

- Student Recruitment - Cranmer 

- Estates Backlog Post-Covid 

- Commercial Business 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


- Recruitment of a New Principal 

## **Council Members and Charity Trustees** 

St John’s College, Durham was historically an exempt charity and therefore had no registered charity number. This arrangement changed under the Charities Act 2006. During 2010/11 the Council adopted a revised Memorandum and Articles of Association and prepared a Public Benefit Statement that enabled registration with the Charity Commission and the allocation of a Registered Charity number, 1141701. 

St John’s College, Durham is a company limited by shares but by license of the Board of Trade the word ‘Limited’ is omitted from the name of the company. Council directs its operations in accordance with the Memorandum and Articles of Association. During the year ended 31st July 2023 Rt Revd Dr Robert Innes served as President of Council and Dr Jamie Harrison served as Vice President. Membership of Council is by election of the Council. 

Nominations are made by the Search and Nominations subcommittee of Council which is chaired by the President of the Council. Members of Council are elected for a term of four years, with an option to be elected for one further four-year term. Formal induction and training of trustees takes place and is overseen by the Principal. An induction pack is provided to each new member of Council which contains copies of all relevant policies and procedures. The University Vice-Chancellor is an ex-officio member of Council. 

Council has a committee structure, constituted under the statement of delegations adopted by Council. Each committee has a governing document setting out its membership, its terms of reference, its powers, how often the committee should meet and its reporting requirements. Audit Committee consists of an independent chair and two non-exec members of Council and is responsible for overseeing the external audit of the financial statements. 

As St John’s College’s purpose is to benefit students of both the University and the Church, (and through this to offer wider public benefit) the college’s management and governance structures are designed to be particularly responsive to those groups. College Officers meet regularly with student representatives and Council membership includes seats for the St Johns Common Room President and the Cranmer Common Room President. The wider church is well represented on the College Council. 

The interests of the University are safeguarded by the Vice Chancellor and two members of the University on College Council (an external member appointed by the Council of the College, but whose appointment is ratified by the Council of Durham University and an appointed external member who has been proposed for appointment by the Council of Durham University). 

The Council Members have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity and are satisfied that systems are in place to mitigate exposure to the major risks. 

Council Members who served during the financial year 2022/2023 and up to the date of signing this report: 

|Council Members who served during the<br>report:|financial year 2022/2023 and up to the date of signing this|
|---|---|
|**Council Member**|**Appointed or resigned in the financial period**|
|Mrs E Bagg|Resigned 22/04/2023|
|Dr R Bouveng|n/a|
|Mrs B Cass|Resigned 16/12/2022|
|Mrs A Cook|Resigned 16/12/2022|
|Mr C Courtman|Appointed 16/12/2022|
|Mrs C Curran|n/a|



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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


|Mr S Dale|n/a|
|---|---|
|Mr J Davison|Resigned 16/06/2023|
|Dr M Gilmore|n/a|
|Canon Dr J Harrison|n/a|
|Professor M Higton|n/a|
|Rt Revd Dr R Innes|n/a|
|Mr T Jackson|Resigned 3/07/2023|
|Mr M Killen|Appointed 01/12/2023|
|Mrs S Judson|n/a|
|Rt Revd E Lane|n/a|
|Mr A McAllister|Appointed 22/04/2023|
|Professor A Michael|n/a|
|Professor J Mitchell|Appointed 22/09/2023|
|Professor G Moore|Resigned 16/06/2023|
|Revd Dr N Moore|Appointed 01/12/2023|
|Revd F Ngangira|n/a|
|Miss K Pattinson|Resigned 07/02/2024|
|Revd Dr Cannon P Plyming|Resigned 31/08/2023|
|Revd M Prasadam|Appointed 17/01/2023,Resigned 31/01/2024|
|Miss A Robinson|Appointed 22/09/2023|
|Mr N Robson|n/a|
|Mrs K Stephenson|Appointed 10/03/2023|
|Ms J Sutton|Appointed 22/09/2023|
|Professor T Ward|Appointed 01/12/2023|
|Revd Professor D Wilkinson|Resigned 31/08/2023|



## Remuneration Committee 

The Remuneration Committee, a committee appointed by and reporting to Council and chaired by President of Council, is responsible for determining, within such sums as may be agreed by Finance Committee, the remuneration of College Officers, including the Principal, and for approving any termination arrangements, including pension enhancements, made to College Officers in connection with the cessation of their employment. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## **Professional Advisors** 

**Auditors** Haines Watts North East Audit LLP 17 Queens Lane Newcastle upon Tyne NE1 1RN 

**Bankers Insurance Brokers** Barclays Bank Plc Marsh Commercial 6 Market Place 1 Whitehall Quay Durham Whitehall Road DH1 3ND Leeds LS1 4HR 

**Solicitors Surveyors** Swinburne Maddison George F White LLP Venture House Dean Street Arch Aykley Heads Business Centre 22 Dean Street/ Aykley Heads Newcastle upon Tyne Durham NE1 1PG DH1 5TS 

## **Disclosure of information to auditors** 

The members who held office at the date of approval of this members’ report confirm that, so far as they are each aware, there is no relevant audit information of which the company’s auditors are unaware; and each member has taken all the steps that he/she ought to have taken as a member to make himself/herself aware of any relevant audit information and to establish that the company’s auditors are aware of that information. 

Auditors 

Haines Watts North East Audit LLP have indicated their willingness to continue in office as auditor, and a resolution concerning their reappointment will be put forward at the Annual General Meeting. 

By order of the board 


## **Rt Revd Dr Robert Innes** 

## _Chair of Council_ 

3 South Bailey Durham DH1 3RJ 8[th] March 2024 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## **Financial Statements** 

Statement of Council Members’ responsibilities in respect of the Report of the Members of Council and the Financial Statements 

The Council members (who are also directors of St John’s College, Durham for the purposes of company law) are responsible for preparing the Members' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the members 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 the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the members are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgments and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. 

The members are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

In so far as the members are aware: 

- there is no relevant audit information of which the charitable company's auditor is unaware; and 

- • the members have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

The members are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


Independent Auditor’s Report to the Council Members of St John’s College, Durham University 

## Opinion 

We have audited the financial statements of St John’s College (the ‘charitable company’) for the year ended 31 July 2023 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the charitable company’s affairs as at 31 July 2023, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## 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 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 

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: 

- the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or 

- the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## Other information 

The trustees are responsible for the 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.  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. 

## Opinions on other matters prescribed by the Companies Act 2006 

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

- the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the directors’ report has been prepared in accordance with applicable legal requirements. 

## Matters on which we are required to report by exception 

In the light of our 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 directors’ report. 

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

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of directors’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit; or 

- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. 

## Responsibilities of trustees 

As explained more fully in the trustees’ responsibilities statement set out on page 9, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

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. 

We obtained an understanding of the legal and regulatory framework applicable to both the charitable company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Charities Act 2011, the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation. We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included: 

- making enquires of trustees and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud; 

- obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; 

- reviewing the minutes of meetings of those charged with governance; 

- assessing the risk of management override including identifying and testing journal entries; 

- confirmation received directly from the banks to verify the balance at 31 July 2023; and 

- challenging the assumptions and judgements made by management in its significant accounting estimates 

Our audit did not identify any key audit matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls. 

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 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 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 and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed. 


## **Craig Henderson (Senior Statutory Auditor)** 

For and on behalf of Haines Watts North East Audit LLP Statutory Auditors 

17 Queens Late 

Newcastle Upon Tyne 

NE1 1RN 

15 March 2024 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## Statement of financial activities 

_(incorporating income and expenditure account) for the year ended 31 July 2023_ 

|_Notes_<br>**Income**<br>_Voluntary income_<br>Grants and Donations<br>Legacies<br>_Investment income_<br>_2_<br>_Income from charitable_<br>_activities_<br>Total fees income<br>_3_<br>_Income from other trading_<br>_activities_<br>Commercial business income<br>_4_<br>Recharges<br>_5_<br>Other income<br>_5_<br>**Total income**<br>**Expenditure**<br>_7_<br>Expenditure on charitable activities<br>Cost of generating funds<br>**Total expenditure**<br>Unrealised (loss)/gains on<br>investments<br>_13_<br>Gain/(Loss) on revaluation of<br>investment property<br>_12_<br>**Net income/(expenditure) before**<br>**transfers**<br>_6_<br>Gross transfers between funds<br>_21_<br>**Net income/(expenditure)**<br>**before other comprehensive gains and losses**<br>Gain/(Loss) on revaluation of<br>tangible fixed assets<br>_11_<br>**Net movement in funds for the year**<br>Fund balances brought forward<br>Fund balances carried forward<br>_21_|**Endowment**<br>**fund,**<br>**revaluation**<br>**reserve and**<br>**share capital**<br>**£**<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>944,935<br>944,935<br>7,591,650<br>8,536,585|**Unrestricted**<br>**General fund**<br>**£**<br>15,546<br>0<br>0<br>3,968,533<br>118,190<br>407,394<br>6,586<br>4,516,249<br>(3,969,693)<br>(112,989)<br>(4,082,682)<br>0<br>0<br>433,567<br>(250,000)<br>183,567<br>0<br>183,567<br>8,228,020<br>8,411,587|**Unrestricted**<br>**Designated**<br>**funds**<br>**£**<br>33,127<br>0<br>123,444<br>0<br>124,397<br>0<br>0<br>280,968<br>(67,983)<br>(112,357)<br>(180,340)<br>(16,190)<br>(1,127,500)<br>(1,043,062)<br>250,000<br>(793,062)<br>0<br>(793,062)<br>4,521,548<br>3,728,486|**Restricted**<br>**funds**<br>**£**<br>1,651,285<br>0<br>25,274<br>0<br>0<br>0<br>0<br>1,676,559<br>(1,405,734)<br>0<br>(1,405,734)<br>0<br>0<br>270,825<br>0<br>270,825<br>0<br>270,825<br>1,535,192<br>1,806,017|**Total 2023**<br>Total 2022<br>**£**<br>£<br>**1,699,958**<br>1,530,683<br>**0**<br>250<br>**148,718**<br>109,040<br>**3,968,533**<br>3,867,043<br>**242,587**<br>230,829<br>**407,394**<br>198,989<br>**6,586**<br>77,339<br>**6,473,776**<br>6,014,173<br>**(5,443,410)**<br>(4,917,045)<br>**(225,346)**<br>(217,900)<br>**(5,668,756)**<br>(5,134,945)<br>**(16,190)**<br>(10,393)<br>**(1,127,500)**<br>0<br>**(338,670)**<br>868,835<br>**0**<br>0<br>**(338,670)**<br>868,835<br>**944,935**<br>**606,265**<br>868,835<br>**21,876,410**<br>21,007,575<br>**22,482,675**<br>21,876,410|
|---|---|---|---|---|---|



All of the above results are derived from continuing activities. The charitable company has no other recognised gains and losses other than those stated above. 

The notes on pages 22 to 46 form part of these financial statements. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


Balance Sheet _at 31 July 2023_ 

|_Notes_<br>**Fixed assets**<br>Tangible assets<br>_11_<br>Investment properties<br>_12_<br>Investments<br>_13_<br>**Current assets**<br>Stock<br>_14_<br>Debtors<br>_15_<br>Cash at bank and in hand<br>**Creditors:**amounts falling due within one year<br>_16_<br>**Net current assets**<br>**Total assets less current liabilities**<br>**Creditors:**amounts falling due after more than<br>_17_<br>one year<br>**Net assets**<br>**Capital and reserves**<br>Called up share capital<br>_18_<br>Endowment fund<br>_21_<br>Revaluation reserve<br>Endowment funds<br>Unrestricted accumulated fund<br>_21_<br>Designated funds<br>_21_<br>Restricted funds<br>_21_|**£**<br>**£**<br>**£**<br>**£**<br>**18,037,503**<br>17,728,002<br>**2,525,000**<br>3,652,500<br>**885,144**<br>901,334<br>**21,447,647**<br>22,281,836<br>**17,596**<br>17,199<br>**34,806**<br>149,210<br>**3,523,024**<br>3,153,612<br>**3,575,426**<br>3,320,021<br>**(357,441)**<br>(843,384)<br>**3,217,985**<br>2,476,637<br>**24,665,632**<br>24,758,473<br>**(2,182,957)**<br>(2,882,063)<br>**22,482,675**<br>21,876,410<br>**24**<br>24<br>**8,233,800**<br>7,288,865<br>**302,761**<br>302,761<br>**8,536,561**<br>7,591,626<br>**8,411,587**<br>8,228,020<br>**3,728,486**<br>4,521,548<br>**1,806,017**<br>1,535,192<br>**22,482,675**<br>21,876,410<br>**As Restated**<br>**2023**<br>**2022**|
|---|---|
||**3,575,426**<br>**(357,441)**|
||**8,233,800**<br>**302,761**|
|||



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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


These financial statements were approved by the Members of the Council on 8[th] March 2024 and were signed on its behalf by: 

**Reverend Professor Jolyon Mitchell** Member of Council 


## **Right Reverend Doctor Robert Innes** 

Chair of Council 


Registered number 00113496 

Registered charity number 1141701 

The notes on pages 22 to 46 form part of these financial statements. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## Cash Flow Statement 

_For the year ended 31 July 2023_ 

|**Cash flows from operating activities**<br>**Cash flows from investing activities**<br>Proceeds from disposal of tangible fixed assets<br>**Net cash outflow from investing activities**<br>**Financing activities**<br>Repayment of borrowings<br>**Increase in cash and cash equivalents in the year**<br>Cash and cash equivalents at the beginning of the year<br>**Cash and cash equivalents at the end of the year**<br>**Cash flows from operating activities**<br>Net income<br>(Loss)/Gain on investments<br>Gain/(loss) on revaluation of fixed assets<br>(Gains)/loss on revaluation of investment property<br>(Profit) / Loss on disposal of tangible fixed assets<br>Change in fair value of equity sharing loan<br>Depreciation<br>(Increase)/decrease in stock<br>Decrease/(increase) in debtors<br>Increase/(decrease) in non loan creditors|**£**<br>**£**<br>**888,145**<br>**452,813**<br>**452,813**<br>**(971,546)**<br>**(971,546)**<br>**369,412**<br>**3,153,612**<br>**3,523,024**<br>**2023**<br>**£**<br>**606,265**<br>**16,190**<br>**(944,935)**<br>**1,127,500**<br>**(89,413)**<br>**127,813**<br>**272,034**<br>**(397)**<br>**114,404**<br>**(341,316)**<br>**888,145**<br>**2023**|£<br>£<br>1,193,565<br>0<br>-<br>(89,975)<br>(89,975)<br>1,103,590<br>2,050,022<br>3,153,612<br>2022<br>£<br>868,835<br>10,393<br>0<br>0<br>0<br>0<br>272,031<br>(3,305)<br>(76,300)<br>121,911<br>1,193,565<br>**2022**|
|---|---|---|



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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## Notes 

_(forming part of the financial statements)_ 

## 1. Accounting Policies 

## **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 accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), and the Companies Act 2006. 

## **Going Concern** 

FRS 102 requires that, if appropriate, the College's financial statements are prepared on the going concern basis, which means that the organisation is able to operate for at least 12 months from approval of the financial statements, on the basis of known and reasonable projected resources. Management have prepared detailed budgets and cash flow forecasts up to July 2024, and summary budgets and cash flow forecasts have also been prepared to 12 months from the date of signing these accounts to assist with going concern considerations. In preparing these forecasts consideration has been given to the current economic climate, particularly to increasing interest rates, rising costs of gas and electricity, and pressure on staff costs. The College has sufficient resources available to meet liabilities as they fall due. As such there are no material uncertainties in respect of the College's ability to continue as a going concern. As a consequence, the Members believe the company is well placed to manage its business risks successfully and therefore have adopted the going concern basis of accounting in preparing the financial statements. 

## **Fund Accounting** 

- Designated funds comprise general funds which have been set aside at the discretion of Members of the Council for specific purposes. The purpose and use of the designated funds are set out in note 21. 

- Restricted funds are funds subject to specific restrictive conditions imposed by funders or by the purpose of the appeal. The purpose and us use of the restricted funds are set out in note 21. 

- Endowment funds arise when the donor has expressly provided that the gift is to be invested and only the income of the fund may be spent. 

- Revaluation reserve consists of cumulative revaluation gains and losses in respect of land and buildings. 

- All income and expenditure is shown in the Statement of Financial Activities. 

## **Income** 

All income is recognised when the College becomes entitled to the funds, likelihood of receipt is probable and the amount measurable: 

- Fee income comprises College fees, maintenance fees and student rents. 

- Commercial business income comprises bed and breakfast lettings, conferences during vacations and bar sales. 

- Recharges comprise staff costs and office costs charged to restricted funds or other organisations. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


- Other income comprises gains on disposal of fixed assets, sales of alumni merchandise and various publications, Coronavirus Job Retention Scheme Grants and other miscellaneous income. 

- Donations and legacies comprises gifts and donations given by supporters, the general public and business. 

## **Expenditure** 

All expenditure is recognised on the accruals basis. Charitable expenditure comprises expenditure relating to the direct furtherance of the charitable objectives. 

Costs of generating funds comprises the costs incurred in relation to commercial business, which is undertaken to provide funds to support the charitable objectives of the College. 

Irrecoverable VAT is included as an expense where appropriate. 

## **Governance Costs** 

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. These are included within expenditure on charitable activities. 

## **Interest receivable and interest payable** 

Interest payable and similar charges include interest payable and finance leases recognised in the Statement of Financial Activities using the effective interest method. 

Other interest receivable and similar income include interest receivable on funds invested. 

Interest income and interest payable are recognised in the Statement of Financial Activities as they accrue, using the effective interest  method. Dividend income is recognised in the Statement of Financial Activities on the date the company's right to receive payments is established. 

## **Basic financial instruments** 

## _Trade and other debtors/creditors_ 

Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses. 

## _Interest-bearing borrowings classified as basic financial instruments._ 

Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses. 

## _Cash and cash equivalents_ 

Cash and cash equivalents comprise cash balances and call deposits. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## **Other financial instruments** 

## _Financial instruments not considered to be Basic Financial Instruments_ 

Other financial instruments not meeting the definition of Basic Financial Instruments are recognised initially at fair value. Subsequent to initial recognition other financial instruments are measured at fair value with changes recognised in the Statement of Financial Activities, except investments in equity instruments that are not publicly traded and whose fair value cannot otherwise be measured reliably shall be measured at cost less impairment. 

## **Tangible fixed assets and depreciation** 

Tangible fixed assets are stated at cost or valuation including any incidental expenses of acquisition. Additions, which are capitalised when greater than a de minimus level of £5,000 for any individual item or £15,000 for any group of items, and disposals are included when contractual obligations have been met. 

Freehold land is not depreciated. Depreciation is provided on all other assets at rates calculated to write off the cost or valuation, less estimated residual value, over their estimated useful economic lives as follows: 

|**Freehold property**|1% - 2% straight line|
|---|---|
|**Leasehold property**|2% - straight line|
|**Fixtures, fittings and equipment**|5% - 20% straight line|



The policy for freehold and leasehold property is to undertake an RICs fair basis revaluation every 3-5 years. 

For assets under construction, costs are included as debtors to the point where planning permission is received. At that point all costs to date are transferred to assets under construction, and subsequent costs are added as incurred. At the point of final completion the costs are transferred to the relevant fixed assets category and depreciated as above. 

The Trustees consider the need for impairment of fixed assets on an annual basis. 

## **Revaluation** 

Gains on revaluation are recognised on the face of the Statement of Financial Activities before arriving at net movement in funds and accumulated in revaluation reserve. 

Losses arising on revaluation are recognised on the face of the Statement of Financial Activities before arriving at net movement in funds to the extent of any previously recognised revaluation increase accumulated in equity, in respect of that asset. Any excess is recognised in expenditure. 

## **Investment property** 

Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are recognised initially at cost. 

Subsequent to initial recognition: 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


- i) investment properties are held at fair value. Any gains or losses arising from changes in the fair value are recognised in the Statement of Financial Activities in the period that they arise; and 

- ii) no depreciation is provided in respect of investment properties. 

## **Impairment excluding stocks and investment properties** 

## _Financial assets (including trade and other debtors)_ 

A financial asset not carried at fair value through the Statement of Financial Activities is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. 

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. For financial instruments measured at cost less impairment an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the charitable company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impairment losses are recognised in the Statement of Financial Activities. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed   through the Statement of Financial Activities. 

## _Non-financial assets_ 

The carrying amounts of the charitable company's non-financial assets, other than investment property and stocks are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. The recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or group of assets. 

An impairment loss is recognised if the carrying amount of an asset exceeds its estimated recoverable amount. Impairment losses are recognised in the Statement of Financial Activities. 

Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exits. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. 

## **Provisions** 

A provision is recognised in the balance sheet when the charitable company has a present legal or constructive obligation as a result of a past event, that can be reliably measured, and it is probable that an outflow of economic benefits will be required to settle the obligation at the reporting date. 

## **Stocks** 

Stocks are stated at the lower of cost and net realisable value. Stock includes catering provisions and bar provisions. 

## **Pensions costs** 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


The schemes in which the charitable company participates are the Church of England Funded Pension Scheme and the Universities Superannuation Scheme. The assets of these funds are held separately from those of the College in independently administered funds. 

The Church of England Funded Pension Scheme is a defined benefit scheme, but the College is unable to identify its share of the underlying assets and liabilities. Each employer in the scheme pays a common contribution rate. Where the share of assets/liabilities cannot be identified, FRS 102 requires the College to account for pension costs on the basis of contribution actually payable to the Scheme in the year. 

The Universities Superannuation Scheme is a defined benefit scheme. The College is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as required by FRS 102, accounts for the scheme as if it were a defined contribution scheme. 

For defined contribution schemes, the amount charged to the Statement of Financial Activities in respect of pension costs and other post-retirement benefits are the contributions payable in the year. 

## **Investments** 

Investments are stated at market value. Unrealised and realised gains or losses are reported in accordance with the SORP. 

Investment income is recognised on a receivable basis. 

## **Judgements and key sources of estimation uncertainty** 

In the application of the College's accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 

The members have estimated the cost of the buildings included within the total cost of land and buildings in order to calculate the depreciation charge. Historically this estimate has been based on the total cost comprising one third attributable to land and two thirds attributable to buildings. 

Investment Properties are carried at fair value with a valuation being undertaken every year and freehold and leasehold properties are carried at fair value with a valuation being undertaken every 3 to five years. The approach to property revaluations is on the basis of fair value (FRS 102), in accordance with VPGA 1 of the RICS Valuation – Global Standards 2022 (The Red Book) and UK GAAP. Fair Value is defined within the current Financial Reporting Standards as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market sector participants at the measurement date” as defined in VPS 4 Section 7 of the Red Book. For specialised properties valuations are on the basis of Depreciated Replacement Cost in accordance with FRS 102 Section 17 para 15D. This is defined as “the current replacement cost of an asset less reductions for physical deterioration and all forms of obsolescence”. 

The College’s policy is to obtain a third-party valuation expert to provide the valuations based on the above parameters. However, a different valuation expert has been appointed in the current year to provide the investment property valuation than in the prior year. The reason for a change in the valuation 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


expert was to seek an alternative opinion in response to a change in market conditions and as the College explores the possibility of disposing of this asset. This has resulted in a different valuation approach being adopted with respect to investment properties, and the impact of this can be seen in the Statement of Financial Activities. 

In the current period a valuation has also been obtained for freehold and leasehold properties, and the impact of these valuations can also be seen in the Statement of Financial Activities. The College has an Equity Sharing Loan which was used to purchase certain of these properties. As the value of the loan is directly linked to the value of the properties, the impact of the valuation of these properties also impacts the carrying value of the loan. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## 2. Investment Income 

|3. Total Fees Income<br>4. Commercial Business Income<br>**Investment Income**<br>Interest receivable<br>Dividends from unlisted securities<br>Rental income from investment property<br>**Total Fees Income**<br>Accommodation fees<br>Tuition fees<br>College fees<br>Other fees|**2023**<br>**£**<br>**0**<br>**25,274**<br>**123,444**<br>**148,718**<br>**2023**<br>**£**<br>**2,454,303**<br>**827,045**<br>**551,915**<br>**135,270**<br>**3,968,533**|2022<br>£<br>1,961<br>24,767<br>82,312|
|---|---|---|
|||109,040|
|||2022<br>£<br>2,336,500<br>870,627<br>507,637<br>152,279|
|||3,867,043|
||||
|**Commercial Business Income**<br>Conferences & events<br>Bar|**2023**<br>**£**<br>**118,190**<br>**124,397**<br>**242,587**|2022<br>£<br>107,344<br>123,485|
|||230,829|
||||
|5. Other Income|||
|**Other Income**<br>Recharges<br>Coronavirus Job Retention Scheme Grant<br>Other income|**2023**<br>**£**<br>**407,394**<br>**-**<br>**6,586**<br>**413,980**|2022<br>£<br>198,989<br>14,675<br>62,664|
|||276,328|



Recharges are the staff costs and associated office costs paid by the College, which are then recharged to funded projects. 

28 



St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## 6. Net Income Before Charges Are Stated 


**----- Start of picture text -----**<br>
Net Income Before Charges Are Stated 2023 2022<br>£ £<br>After charging / (crediting)<br>Depreciation 272,034 272,031<br>Operating lease charges 0 0<br>Profit on Disposal of tangible fixed assets (89,413) 0<br>Change in fair value of equity sharing loan 127,813 -<br>Auditors remuneration<br>Statutory audit of these financial statements 18,000 16,625<br>**----- End of picture text -----**<br>


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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## 7. Expenditure 

|**Expenditure**<br>**_Charitable expenditure_**<br>Academic costs<br>Student services<br>Management, Professional & Support Services<br>Operations<br>Major repairs and refurbishments<br>Staff costs (note 8)<br>Depreciation (note 11)<br>Interest paid<br>Governance costs:<br>Council & committee costs<br>Legal fees<br>Audit and accounts<br>Professional fees<br>**_Cost of generating funds_**<br>Commercial activities<br>Staff costs (note 8)<br>Bar<br>**31st July 2022**<br>_Charitable expenditure_<br>Academic costs<br>Student services<br>Management, Professional & Support Services<br>Operations<br>Major repairs and refurbishments<br>Staff costs (note 8)<br>Depreciation (note 11)<br>Interest paid<br>Governance costs:<br>Council & committee costs<br>Legal fees<br>Audit and accounts<br>Professional fees<br>_Cost of generating funds_<br>Commercial activities<br>Staff costs (note 8)<br>Bar|**Unrestricted**<br>**Funds**<br>**£**<br>**232,068**<br>**117,688**<br>**255,720**<br>**605,484**<br>**689,988**<br>**1,719,962**<br>**272,034**<br>**110,389**<br>**5,744**<br>**5,752**<br>**13,200**<br>**54,654**<br>**4,082,682**|**Designated**<br>**Funds**<br>**£**<br>50,481<br>-<br>-<br>129,859<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>**180,340**<br>**34,780**<br>**112,989**<br>**77,577**<br>**225,346**<br>Unrestricted<br>Funds<br>£<br>173,499<br>70,828<br>116,645<br>846,532<br>140,921<br>1,941,996<br>272,031<br>82,663<br>347<br>3,457<br>16,625<br>30,296<br>**3,695,840**<br>18,835<br>104,034<br>95,031<br>**217,900**|**Restricted**<br>**Total**<br>**Funds**<br>**2023**<br>**£**<br>**£**<br>1,061,662<br>**1,344,211**<br>14,702<br>**132,390**<br>-<br>**255,720**<br>17,572<br>**752,915**<br>-<br>**689,988**<br>311,798<br>**2,031,760**<br>-<br>**272,034**<br>-<br>**110,389**<br>-<br>**5,744**<br>-<br>**5,752**<br>-<br>**13,200**<br>-<br>**54,654**<br>**1,405,734**<br>**5,668,756**<br>**-**<br>**34,780**<br>**-**<br>**112,989**<br>**-**<br>**77,577**<br>**-**<br>**225,346**<br>Restricted<br>Total<br>Funds<br>2022<br>£<br>£<br>867,067<br>1,040,566<br>27,990<br>98,818<br>4,904<br>121,549<br>-<br>846,532<br>-<br>140,921<br>321,244<br>2,263,240<br>-<br>272,031<br>-<br>82,663<br>-<br>347<br>-<br>3,457<br>-<br>16,625<br>-<br>30,296<br>**1,221,205**<br>**4,917,045**<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-|
|---|---|---|---|



The College Bar operates under a Club Premises Licence for the benefit of the whole College. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


Operations costs include catering, housekeeping and facilities. 

The analysis of expenditure has been updated to reflect the new structure. The comparative figures have been re-presented in line with the restructure. 

8. Staff Costs 


**----- Start of picture text -----**<br>
||||
|---|---|---|
|2023|2022|
|Staff Costs|£|£|
|Wages and salaries|2,144,749|1,986,636|
|Social security costs|185,495|162,512|
|Pension costs|226,312|218,126|
|2,556,556|2,367,274|

**----- End of picture text -----**<br>


There was one employee (2022: one) whose emoluments, as defined for taxation purposes, amounted to over £60,000 in the current or prior year. The emoluments of this employee fell within the following bands: 

## £70,000 - £79,999 


**----- Start of picture text -----**<br>
|||
|---|---|
|2023|2022|
|1|1|

**----- End of picture text -----**<br>


Pension contributions paid in the year in respect of the above staff were £17,241 (2021: £16,597). 

The average number of employees, analysed by function, was: 


**----- Start of picture text -----**<br>
||||
|---|---|---|
|The average number of employees, analysed by function, was:|2023|2022|
|Academic Teaching & Related Staff|16|14|
|Research Staff|11|10|
|Student Services Staff|9|16|
|Management, Professional & Support Staff|15|8|
|Operations Staff|46|45|
|Commercial Business Staff|4|3|
|101|96|
|The average number of full-time equivalent persons|
|employed by the College during the year was:|72|62|

**----- End of picture text -----**<br>


Operations staff include catering, housekeeping and facilities. the new structure. During the year the College undertook a restructure of its areas of activity. The analysis of staff costs and numbers has been updated to reflect. The comparative figures have been re-presented in line with the restructure. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## 9. Key management personnel (trustees) 

Members of the Council are the key management personnel of the Charitable Company. They are in charge of directing and controlling, running and operating the Charitable Company on a day-to-day basis. 

No remuneration was paid to any of the Council Members in the capacity of trustees during the year (2022: nil). Six (2022: five) Council Members received remuneration in total of £266,213 (2022: £227,219) in connection with their full-time employment by the College. The College paid contributions of £37,353 (2022: £35,372) to money purchase and defined benefit pension schemes in respect of five (2022: five) Members of Council. 

Expenses of £7,947 (2021: £347) were reimbursed to trustees during the year in respect of attendance at meetings, which represents payments to several (2021: one) trustees. No expenses were waived by the trustees (2021: nil). 

Donations to the charitable company made by the trustees during the year were nil (2022: £2,200). 

## 10. Taxation 

St John's College, Durham, is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part II Corporation Tax Act 2010 or Section 256 of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## 11. Tangible Fixed Assets 


**----- Start of picture text -----**<br>
Freehold<br>land &  Leasehold Leasehold<br>Tangible fixed assets buildings land & fittings &<br>buildings equipment Total 2023<br>£ £ £ £<br>Cost or valuation<br>At 31 July 2022 17,284,460 1,050,001 219,228 18,553,689<br>Additions - - - -<br>- -<br>Disposals (395,000) (395,000)<br>Revaluation (34,460) 9,999 - (24,461)<br>At 31 July 2023 16,855,000 1,060,000 219,228 18,134,228<br>Depreciation<br>At 31 July 2022 687,720 63,000 74,968 825,688<br>Charge for year 229,277 21,000 21,757 272,034<br>- -<br>Released on Disposals (31,600) (31,600)<br>Released on Revaluation (885,397) (84,000) - (969,397)<br>At 31 July 2023 0 0 96,725 96,725<br>Net book value<br>At 31 July 2023 16,855,000 1,060,000 122,503 18,037,503<br>At 31 July 2022 16,596,741 987,001 144,260 17,728,002<br>**----- End of picture text -----**<br>


The tangible fixed assets are used substantially for direct charitable purposes. 

Freehold land included above is not depreciated. 

The cost or valuation figure for land and buildings include: 


**----- Start of picture text -----**<br>
Freehold land Freehold land<br>and buildings and buildings<br>Completed Leasehold Completed Leasehold<br>2023 2023 2022 2022<br>£ £ £ £<br>At valuation 16,784,039 1,060,000 17,213,499 1,050,001<br>Stated at historical cost 70,961 - 70,961 -<br>16,855,000 1,060,000 17,284,460 1,050,001<br>**----- End of picture text -----**<br>


The freehold and leasehold property of the College was professionally valued on 31[st] July 2023 at £17,284,460 on existing use value for the freehold and leasehold properties on the Bailey, depreciated replacement cost appraisal for the Learning Resource Centre and chapel of St Mary the Less, and market value for other properties, by George F White LLP. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## 12. Investment Properties 

## **Investment properties** 

|**_At valuation_**<br>At 31 July 2022<br>Revaluations<br>At 31 July 2023<br>**_Net book value_**<br>**At 31 July 2023**<br>At 31 July 2022|3,652,500<br>(1,127,500)|
|---|---|
||2,525,000|
||**2,525,000**|
||3,652,500|



The historic cost of the above is £3,506,250 (2019: £3,506,250). The investment property was professionally valued on 4[th] July 2023 by Terence Firrell Chartered Surveyors at £5,050,000. The investment represents a 50% share in the property. 

With regards the revaluation of the investment property a new surveyor was instructed to undertake the valuation. They provided an opinion that was significantly lower than the valuation offered by a different surveyor the previous year. This valuation was an opinion of the present open market value of the freehold interest in the property with full vacant possession which also gave consideration to the freehold interest based upon the capitalisation of the rental income. This valuation was prepared in accordance with the _Royal Institution of Chartered Surveyors Valuation – Professional Standards (January 2014 edition, together with a 2019 supplement)_ . A combination of different prevailing market conditions (general economic situation, military conflict in eastern Europe and difficulties with manufacture, supply and the labour market) and a difference of professional opinion compared with the previous valuer, has resulted in significant difference in value. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## 13. Investments 

Unquoted investments are represented by income shares held in the Central Board of Finance of the Church of England Investment Fund. 

## **Investments** 

|**Fixed assets**<br>**_Market value_**<br>At 31 July 2022<br>Additions<br>Unrealised (loss)/gain<br>**At 31 July 2023**<br>**_Cost_**<br>Historical cost|**Total**<br>**2023**<br>**£**<br>**901,334**<br>**-**<br>**(16,190)**|Total<br>2022<br>£<br>911,727<br>-<br>(10,393)<br>901,334<br>206,307|
|---|---|---|
||**885,144**||
||**206,307**||
||||
|14. Stock<br>15. Debtors<br>**Stock**<br>Bar and catering||**2023**<br>2022<br>**£**<br>£<br>**17,596**<br>17,199|
|**Debtors**<br>Trade debtors<br>Prepayments and accrued income<br>Other debtors|**2023**<br>**£**<br>**22,528**<br>**2,528**<br>**9,750**|2022<br>£<br>134,474<br>2,528<br>12,208<br>149,210|
||**34,806**||
||||
|16. Creditors: amounts falling due within one year|||
|**Creditors: amounts falling due within one year**<br>Bank loans (note 17)<br>Other loans (note 17)<br>Trade creditors<br>Other creditors<br>Other taxes and social security<br>Accruals & deferred income|**2023**<br>**£**<br>**157,813**<br>**100,000**<br>**5,110**<br>**46,674**<br>**7,200**<br>**40,644**|2022<br>£<br>202,440<br>200,000<br>274,298<br>69,020<br>7,456<br>90,170<br>843,384|
||**357,441**||



There was no deferred income as at the year-end (2022: £nil). 

35 



St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## 17. Creditors: amounts falling due after more than one year 

**Creditors: amounts falling due after more than one year** 

|**Creditors: amounts falling due after more than one year**<br>Bank loans<br>Equity sharing loan<br>Other loans|As Restated<br>**2023**<br>2022<br>**£**<br>£<br>**1,562,957**<br>1,836,883<br>**620,000**<br>945,180<br>**-**<br>100,000<br>**2,182,957**<br>2,882,063|
|---|---|



## _Prior Year Restatement_ 

During the year, it was identified that in accordance with FRS 102, the Equity sharing loan should have been classified as a financial liability carried at fair value, rather than a financial liability being carried at amortised cost. This is due to the repayments on the loan being linked to the value of the properties the loan was used to purchase, rather than the amount initially borrowed. The comparative information has therefore been restated to bring the carrying value of the liability in line with the related propertes, and therefore avoiding the valuation mismatch. The impact of this is to increase the value of the liability by £651,930 and to decrease the opening funds by the same amount. 

|**_Details of loans and security_**<br>**_Maturity - loans_**<br>Aggregate amounts repayable:<br>Over five years<br>Between two and five years<br>Within one year (note 16)|As Restated<br>**2023**<br>2022<br>**£**<br>£<br>**1,331,570**<br>2,009,936<br>**835,200**<br>872,127<br>**2,182,957**<br>2,882,063<br>**257,813**<br>402,440<br>**2,440,770**<br>3,284,503|
|---|---|



Equity Sharing Loans valued at £620,000 (2022: £945,150) have been received from the Church Commissioners in respect of the purchase of property for staff and student accommodation. The Commissioners have 100% of the equity stake in these properties. Interest was charged at 5% on draw down of the loan, with the rate being revised annually in line with the Retail Price Index. Interest is charged quarterly and the capital is not repayable until the property is sold. These loans are accounted for as financial liabilities at fair value through the profit and loss, with the value of the loan being linked to the market value of the related properties. Two of these properties were sold during the financial year (32 Wearside Drive on 28 November 2022 and 29 Hastings Avenue on 26 May 2023). The total balance outstanding as at 31[st] July 2023 was £620,000. 

An interest free loan amounting to £500,000 was received in August 2018 from the William Leech Foundation in respect of the Learning Resource Centre. The loan is repayable in annual instalments of £100,000 on the anniversary of draw down of the loan. The total balance outstanding at 31 July 2023 was £100,000. 

A mortgage amounting to £2,000,000 was received in November 2018 in order to repay existing bank loans and fund the completion of the Learning Resource Centre. The loan is secured against the land and buildings known as 1-12 Brass Thill and 16 Briardene and is repayable in monthly instalments over a period of 20 years. The loan consists of two equal parts for which interest is charged on both at a variable rate of 2.2% above Bank of England Base Rate. The total balance outstanding at July 2023 was £1,720,770. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## 18. Called-up share capital 


**----- Start of picture text -----**<br>
Called up share capital 2023 2022<br>£ £<br>Allotted, called up and fully paid<br>24 Ordinary shares of £1 each 24 24<br>**----- End of picture text -----**<br>


There was no movement in called up share capital during the year. 

## 19. Financial Commitments 

## _Contingencies_ 


**----- Start of picture text -----**<br>
Year of grant<br>1960 40,000<br>1961 1,163<br>1964 2,215<br>1974 3,000<br>46,378<br>**----- End of picture text -----**<br>


The Central Board of Finance of the Church of England made the following conditional grants to St John's College which are repayable in the event that the College at any time ceases to be a Church of England College, which is either accepting students to read for degrees in the Faculty of Theology of Durham University, or is training students for ministry in the Church of England. 

## 20. Financial Instruments 

## _20(a) Carrying amount of financial instruments._ 

The carrying amounts of the financial assets and liabilities include: 

## _**20(a) Carrying amount of financial instruments**_ 

The carrying amounts of the financial assets and liabilities include: 


**----- Start of picture text -----**<br>
||||
|---|---|---|
|2023|2022|
|£|£|
|Assets measured at fair value through profit or loss|885,144|901,334|
|Assets measured at amortised cost|32,278|146,682|
|Liabilities measured at fair value through profit or loss|(620,000)|(945,180)|
|Liabilities measured at amortised cost|(1,872,554)|(2,582,641)|

**----- End of picture text -----**<br>


_20(b) financial instruments measured at fair value_ 

Unquoted investments held by the charitable company are represented by income shares in the Central Board of Finance of the Church of England Investment Fund. The fair value of these unquoted investments is determined by reference to their quoted bid price at the balance sheet date. The fund is administered by the CCLA (Churches, Charities and Local Authorities) Investment Management Limited. 

The charitable company has a number of equity sharing loans that are accounted for as financial liabilities at fair value through the profit and loss, with the value of the loan being determined with reference to the market value of the related properties 

## _20(b) Fair values_ 

The amounts for all financial assets carried at fair value are as follows: 

37 



St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## _**20(b) Fair values**_ 

The amounts for all financial assets carried at fair value are as follows: 

**Non-derivative financial assets at fair value through profit and loss** Unquoted investments 


**----- Start of picture text -----**<br>
Fair Fair<br>value value<br>2023 2022<br>£ £<br>885,144 901,334<br>**----- End of picture text -----**<br>


38 



St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## 21. Movement in Funds 

|**Movement in funds**<br>**Designated funds**<br>College Bar & Wine Cellar<br>Legacy Programme<br>Johns Society<br>Major Works & Refurbishments Fund<br>WSC Research Centre<br>**Total designated funds**<br>**Restricted funds**<br>Centenary Endowment Fund<br>Ian Cundy Memorial<br>ECLAS Phase 4<br>The Evangelical Graduate Fellowship<br>Art & Artifacts<br>Equipping Church Leadership - Phase 2- Templeton (DAW)<br>ECLAS Phase 3<br>Wesley Study Centre<br>Ruth Etchells Theology & Literature Fund<br>Centre For Church Planting Theology & Reasearch<br>Alphonse Mohapi Scholarship<br>God & The Big Bang<br>Leech Hall Development Fund<br>Student Opportunities Fund<br>Boat Club Fund<br>First Generation Scholarship<br>Bowron Bursary<br>Free Church Track<br>Raymond Dew Fellowship<br>Durham Apologetics Network (DAW)<br>Friends of Cranmer Hall<br>Leadbeater Accommodation Award<br>Helping Hands Appeal (Now Staff Emergency Hardship)<br>Nowell - Rostron Bequest<br>Million Shilling Fund<br>Visiting Fellowship Fund<br>Michael Vasey Memorial Fund<br>Michael Vasey Legacy<br>Scholarship Fund<br>Chapel Fabric<br>Underground Story<br>**Total restricted funds**<br>**Endowment fund incorporating:**<br>**Revaluation reserve**<br>**Endowment funds**<br>**Share capital**<br>**Unrestricted: accumulated fund**<br>**Total funds**|Balance<br>31 July 2022<br>£<br>(31,185)<br>4,324,113<br>10,432<br>184,079<br>34,109|Income<br>£<br>124,397<br>123,444<br>0<br>0<br>33,127|Expenditure<br>£<br>(129,860)<br>(21,644)<br>0<br>0<br>(28,837)|Valuation<br>Transfers<br>**Balance**<br>Gains/(Losses) (see note below)<br>**31 July 2023**<br>£<br>£<br>**£**<br>0<br>0<br>**(36,648)**<br>(1,143,689)<br>0<br>**3,282,224**<br>0<br>0<br>**10,432**<br>0<br>250,000<br>**434,079**<br>0<br>0<br>**38,399**<br>**(1,143,689)**<br>**250,000**<br>**3,728,486**<br>0<br>0<br>**62,752**<br>0<br>0<br>**94**<br>0<br>0<br>**400,665**<br>0<br>0<br>**61,393**<br>0<br>0<br>**3,978**<br>0<br>0<br>**2,093**<br>0<br>0<br>**96,607**<br>0<br>0<br>**0**<br>0<br>0<br>**79,273**<br>0<br>0<br>**27,505**<br>0<br>0<br>**1,510**<br>0<br>0<br>**285,955**<br>0<br>0<br>**7,144**<br>0<br>0<br>**120,222**<br>0<br>0<br>**5,741**<br>0<br>0<br>**21,025**<br>0<br>0<br>**3,149**<br>0<br>0<br>**21,627**<br>0<br>0<br>**9,252**<br>0<br>0<br>**719**<br>0<br>0<br>**16,985**<br>0<br>0<br>**12,419**<br>0<br>0<br>**1,823**<br>0<br>0<br>**7,031**<br>0<br>0<br>**156,848**<br>0<br>0<br>**45,126**<br>0<br>0<br>**18,046**<br>0<br>0<br>**11,876**<br>0<br>0<br>**316,247**<br>0<br>0<br>**1,669**<br>0<br>0<br>**7,243**<br>**0**<br>**0**<br>**1,806,017**<br>944,935<br>0<br>**8,233,800**<br>0<br>0<br>**302,761**<br>0<br>0<br>**24**<br>0<br>(250,000)<br>**8,411,587**<br>**(198,754)**<br>**0**<br>**22,482,675**|
|---|---|---|---|---|
||**4,521,548**|**280,968**|**(180,341)**|**(1,143,689)**|
||62,752<br>94<br>-<br>62,931<br>3,978<br>2,547<br>275,211<br>-<br>79,273<br>95<br>1,510<br>303,662<br>4,050<br>102,100<br>4,679<br>-<br>3,049<br>15,851<br>9,252<br>719<br>12,282<br>13,419<br>2,623<br>7,031<br>158,648<br>45,126<br>18,046<br>11,876<br>316,247<br>1,669<br>16,472|0<br>0<br>623,993<br>1,000<br>0<br>0<br>677,418<br>0<br>0<br>52,328<br>0<br>212,388<br>19,867<br>24,586<br>2,062<br>21,025<br>1,000<br>33,334<br>0<br>0<br>5,040<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>1,000<br>0<br>1,519|0<br>0<br>(223,328)<br>(2,538)<br>0<br>(454)<br>(856,022)<br>0<br>0<br>(24,918)<br>0<br>(230,095)<br>(16,773)<br>(6,464)<br>(1,000)<br>0<br>(900)<br>(27,558)<br>0<br>0<br>(337)<br>(1,000)<br>(800)<br>0<br>(1,800)<br>0<br>0<br>0<br>(1,000)<br>0<br>(10,748)|0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0<br>0|
||**1,535,192**|**1,676,560**|**(1,405,735)**|**0**|
||7,288,865<br>302,761<br>24<br>8,228,020|0<br>0<br>0<br>4,516,249|0<br>0<br>0<br>(4,082,682)|944,935<br>0<br>0<br>0|
||**21,876,410**|**6,473,777**|**(5,668,758)**|**(198,754)**|



39 



St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


|**Movement in funds (continued)**<br>**Designated funds**<br>College Bar & Wine Cellar<br>Legacy Programme<br>Johns Society<br>Major Works & Refurbishments Fund<br>WSC Research Centre<br>Covid Support Fund<br>**Total designated funds**<br>**Restricted funds**<br>Centenary Endowment Fund<br>Ian Cundy Memorial<br>The Evangelical Graduate Fellowship<br>Art & Artifacts<br>Equipping Church Leadership - Phase 2- Templeton (DAW)<br>ECLAS Phase 3<br>Ruth Etchells Theology & Literature Fund<br>Centre For Church Planting Theology & Reasearch<br>Alphonse Mohapi Scholarship<br>God & The Big Bang<br>Leech Hall Development Fund<br>Student Opportunities Fund<br>Boat Club Fund<br>Bowron Bursary<br>Free Church Track<br>Raymond Dew Fellowship<br>Durham Apologetics Network (DAW)<br>Friends of Cranmer Hall<br>Leadbeater Accommodation Award<br>Helping Hands Appeal (Now Staff Emergency Hardship)<br>Nowell - Rostron Bequest<br>Million Shilling Fund<br>Visiting Fellowship Fund<br>Michael Vasey Memorial Fund<br>Michael Vasey Legacy<br>Scholarship Fund<br>Chapel Fabric<br>Underground Story<br>**Total restricted funds**<br>**Endowment fund incorporating:**<br>**Revaluation reserve**<br>**Endowment funds**<br>**Share capital**<br>**Unrestricted: accumulated fund**<br>**Total funds**|Balance<br>31 July 2021<br>£<br>(11,860)<br>4,291,932<br>0<br>0<br>37,584<br>5,000|Income<br>£<br>123,485<br>82,649<br>11,197<br>0<br>12,000<br>0|Expenditure<br>£<br>(142,810)<br>(648)<br>(765)<br>(140,921)<br>(15,475)<br>(5,000)|Investment<br>Transfers<br>**Balance**<br>Gains/(Losses) (see note below)<br>**31 July 2022**<br>£<br>£<br>**£**<br>0<br>0<br>**(31,185)**<br>0<br>(50,000)<br>**4,323,933**<br>0<br>0<br>**10,432**<br>0<br>325,000<br>**184,079**<br>0<br>0<br>**34,109**<br>0<br>0<br>**0**<br>**0**<br>**0**<br>**275,000**<br>**4,521,368**<br>(728)<br>0<br>**62,752**<br>0<br>0<br>**94**<br>(671)<br>0<br>**62,931**<br>(46)<br>(1,000)<br>**3,978**<br>0<br>0<br>**2,547**<br>0<br>0<br>**275,211**<br>(919)<br>0<br>**79,273**<br>0<br>0<br>**95**<br>0<br>0<br>**1,510**<br>0<br>0<br>**303,662**<br>0<br>0<br>**4,050**<br>(1,153)<br>0<br>**102,100**<br>0<br>0<br>**4,679**<br>(35)<br>0<br>**3,049**<br>0<br>0<br>**15,851**<br>(107)<br>0<br>**9,252**<br>0<br>0<br>**719**<br>(142)<br>0<br>**12,282**<br>(144)<br>0<br>**13,419**<br>0<br>0<br>**2,623**<br>(82)<br>0<br>**7,031**<br>(1,840)<br>(1,800)<br>**158,648**<br>(523)<br>0<br>**45,126**<br>(209)<br>0<br>**18,046**<br>(138)<br>0<br>**11,876**<br>(3,656)<br>0<br>**316,247**<br>0<br>0<br>**1,669**<br>0<br>0<br>**16,472**<br>**(10,393)**<br>**(2,800)**<br>**1,535,192**<br>0<br>(58,540)<br>**7,288,865**<br>0<br>0<br>**302,761**<br>0<br>0<br>**24**<br>0<br>(213,660)<br>**8,228,020**<br>**(10,393)**<br>**0**<br>**21,876,230**|
|---|---|---|---|---|
||**4,322,656**|**229,331**|**(305,619)**|**0**|
||61,746<br>214<br>62,002<br>4,914<br>43,590<br>75,728<br>83,093<br>95<br>1,510<br>194,548<br>90,445<br>4,386<br>3,000<br>9,214<br>9,103<br>719<br>14,216<br>14,220<br>8,027<br>6,919<br>159,104<br>44,402<br>17,756<br>11,686<br>324,292<br>1,669<br>9,088|1,734<br>0<br>1,600<br>110<br>0<br>1,148,563<br>2,190<br>0<br>0<br>264,849<br>4,050<br>19,787<br>293<br>84<br>33,333<br>256<br>0<br>349<br>343<br>0<br>194<br>4,384<br>1,247<br>499<br>328<br>8,711<br>0<br>21,000|0<br>(120)<br>0<br>0<br>(41,043)<br>(949,080)<br>(5,091)<br>0<br>0<br>(155,735)<br>0<br>(6,979)<br>0<br>0<br>(26,696)<br>0<br>0<br>(2,141)<br>(1,000)<br>(5,404)<br>0<br>(1,200)<br>0<br>0<br>0<br>(13,100)<br>0<br>(13,616)|(728)<br>0<br>(671)<br>(46)<br>0<br>0<br>(919)<br>0<br>0<br>0<br>0<br>(1,153)<br>0<br>(35)<br>0<br>(107)<br>0<br>(142)<br>(144)<br>0<br>(82)<br>(1,840)<br>(523)<br>(209)<br>(138)<br>(3,656)<br>0<br>0|
||**1,255,686**|**1,513,904**|**(1,221,205)**|**(10,393)**|
||7,347,405<br>302,761<br>24<br>7,779,043|0<br>0<br>0<br>4,270,938|0<br>0<br>0<br>(3,608,301)|0<br>0<br>0<br>0|
||**21,007,575**|**6,014,173**|**(5,135,125)**|**(10,393)**|



40 



St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 



**----- Start of picture text -----**<br>
Transfers between funds: 2023 2022<br>£ £<br>To General Fund:<br>From Million Shilling Fund to contribute to costs of Senior Tutors Forum 0 800<br>From Million Shilling Fund to contribute to costs of Chaplain 0 1,000<br>From Art & Artefacts to contribute to Chapel Choir tour 0 1,000<br>From Revaluation Reserve to cover depreciation on revalued assets 0 58,540<br>From General Fund:<br>To Major Works & Refurbishment Fund re annual allocation for refurbishments (250,000) (275,000)<br>(250,000) (213,660)<br>From Legacy Programme to Major Works & Refurbishment Fund for additional refurbishment works 0 50,000<br>**----- End of picture text -----**<br>


## **Purposes of designated funds** 

## College Bar 

The College Bar operates under a Club Premises Licence for the benefit of the whole college. It has been incorporated into the College accounts since August 2011. 

## Legacy Programme 

Unrestricted funds received through the legacy programme have been designated by College Council for use in the following areas: 

- Maintenance & refurbishment of the College buildings 

- Provision of student bursaries 

- Support for Cranmer 

## Major Works & Refurbishment 

An annual allocation from General Fund to ensure a continuous cycle of refurbishment works on the College buildings. 

## WSC Research Centre 

Funds transferred to St John's College on the closure of Wesley Study Centre, to continue Methodist research and networking and to cover the cost of employing the WSC Director. 

## Johns Society 

Funds transferred to St John's College on the closure of Johns Society as a separate entity. Funds are used to support alumni events, including the annual five-year reunion. 

## COVID Support Fund 

Established from a single donation and designated to cover additional staffing costs relating to COVID management within the College. The balance on the fund was used during the year and the fund closed. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## Centenary Endowment Fund 

This represents donations raised by an appeal to raise funds to establish a permanent endowment in the College. 

Ian Cundy Memorial 

Donations received to fund an annual lecture in memory of Ian Cundy. 

The Evangelical Graduate Scholarship 

To provide scholarships for international postgraduate research students in the Department of Theology and Religion at Durham University. 

## Art & Artefacts 

This incorporates a donation given towards the purchase of a new cross, together with further donations intended to be used for aesthetic purposes. 

## Equipping Church Leadership 

This is a grant from the Templeton World Charity Foundation, initially for a three-year project to be completed in 2017-18, with an extension to the project for a further year being granted in the year. 

## ECLAS (Equipping Christian Leadership in an Age of Science 

This is a grant from the John Templeton Foundation for a three-year project starting January 2020, and builds on work carried out under previous projects in this area. 

## Ruth Etchells Theology & Literature Fund 

To further within the College the fruitful relationship of theology and literature through research, visiting fellows, and undergraduate participation in questions of theology and literature. 

## Centre For Church Growth Research 

The CCGR conducts research into church growth and decline, holds conferences on this subject, produces publications and encourages postgraduate study in this field. 

## Alphonse Mohapi Scholarship 

To fund a student from Lesotho to attend a postgraduate course at Cranmer. 

## God and the Big Bang 

A project primarily funded by John Templeton foundation with the aim of working with students from nine to eighteen years of age on the theme that science and religion are compatible. 

## Leech Hall Development Fund 

Established in the year as the start of a major fundraising campaign to fund the redevelopment of Leech Hall and surrounding spaces to provide an up to date central hub for the College. 

## Student Opportunities Fund 

Relief of hardship and monies to enable participation in the full range of opportunities that might otherwise be closed to students with limited means, so as to enable enrichment of their university experience. 

Boat Club Fund 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


A campaign by members of the College Boat Club to raise funds to update boats owned by the College, to contribute to the maintenance and upgrade of the boathouse, and to provide professional coaching to the rowers. 

## The Bowron Bursary 

This is a travel bursary funded by monies from the estate of David Bowron, used for relief work for the poor in India. 

## Free Church Track Fund 

To support the delivery of academic programmes for students training for leadership within the free church tradition, and in particular to contribute towards the employment costs of the Free Church Track Director. 

## The Raymond Dew Fellowship 

To provide a residential fellowship leading to the publication of a book exploring the dialogue of science and Christian faith which would be accessible to the general reader. 

## Durham Apologetics Network 

To support an annual day in Apologetics shared between the College and local Durham churches. 

The Friends of Cranmer Hall Fund 

This fund aims to help ordinands who find themselves in financial hardship during their time in training. 

## Leadbeater Accommodation Award 

This fund was established by a donation in memory of Gordon Leadbeater and aims to promote widening participation and access by supporting prospective undergraduate students from low income families to live in College in their first year. 

## Helping Hands Appeal 

To support staff and students who are experiencing financial difficulty caused by the COVID-19 pandemic. 

## Nowell Rostron Bequest 

Nowell Rostron Bequest is incorporated in the Cranmer Visiting Fellowship Fund. 

## The Million Shilling Fund 

The religious education of evangelical students at St John's College, having particular regard to benefiting the children of clergy. 

## The Cranmer Visiting Fellowship Fund 

To defray the residence, study, and travel costs for one term (or more if funds allow) each year of a Cranmer resident fellow with an academic profile and record. A Visiting Fellow will be active at research level or in the public communication of the Christian faith and will give at least one public lecture and one seminar. 

## The Michael Vasey Memorial Fund 

To provide for the costs associated with the annual lecture on the subject of Church Liturgy. The fund was established in memory of Rev Michael Vasey, Tutor in Liturgy at Cranmer Hall. 

The Michael Vasey Legacy Fund 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


Michael Vasey's will stipulated "to promote the Christian purpose for which St John's College is founded and for the furtherance of the theological education at St John's College." 

The Scholarship Fund 

The Scholarship Fund has two aims: 

- to provide access awards, in-course bursaries and personal development awards to support students to make the very best of their time at the University, but who may otherwise struggle financially or be prevented from Accessing all opportunities available. 

- to fund a post-graduate scholarship. 

The Chapel Fabric Fund 

Donations received from a campaign to raise funds for the repairs and upkeep of the College chapel. 

The Underground Story 

Visiting Fellow, the Revd Brian Brown has produced a series of children's books telling stories from the gospel. The College is a partner for the delivery of this project. 

22. Commitments under operating leases 

There are no operating leases. 

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St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 


## 23. Prior year comparatives by type of funds - Statement of Financial Activities 

**Prior year comparatives by type of funds - Statement of Financial Activities** 

|**Income**<br>Voluntary income<br>Donations<br>Legacies<br>_Investment income_<br>Income from charitable<br>_activities_<br>Total fees income<br>Income from other trading<br>activities<br>Commercial business income<br>Recharges<br>Other income<br>**Total income**<br>**Expenditure**<br>Expenditure on charitable activities<br>Cost of generating funds<br>**Total expenditure**<br>Unrealised gains on investments<br>Gain on revaluation of investment property<br>**Net income before transfers**<br>Gross transfers between funds<br>**Net income before other recognised**<br>**gains and losses**<br>Gains on revaluation of fixed assets<br>**Net movement in funds for the year**<br>Fund balances brought forward<br>Transfer in respect of depreciation charged on revalued<br>fixed assets<br>Fund balances carried forward|Endowment<br>fund,<br>revaluation<br>reserve and<br>share capital<br>£<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>7,650,190<br>-58,540<br>7,591,650|Unrestricted<br>General fund<br>£<br>33,579<br>18,348<br>250<br>1,625<br>3,867,043<br>107,344<br>198,989<br>77,339<br>4,270,938<br>(3,533,211)<br>(75,090)<br>(3,608,301)<br>-<br>-<br>662,637<br>(272,200)<br>390,437<br>390,437<br>-<br>390,437<br>8,430,873<br>58,540<br>8,879,850|Unrestricted<br>Designated<br>funds<br>£<br>30,000<br>23,198<br>-<br>82,648<br>-<br>123,485<br>-<br>-<br>229,331<br>(162,629)<br>(142,810)<br>(305,439)<br>624<br>7,500<br>(76,108)<br>275,000<br>198,892<br>198,892<br>-<br>198,892<br>4,322,656<br>-<br>4,521,548|Restricted<br>funds<br>£<br>1,559,519<br>1,489,137<br>-<br>24,767<br>-<br>-<br>-<br>-<br>1,513,904<br>(1,221,205)<br>-<br>(1,221,205)<br>(10,393)<br>-<br>282,306<br>(2,800)<br>279,506<br>279,506<br>-<br>279,506<br>1,255,686<br>-<br>1,535,192|Restricted<br>funds<br>£<br>1,559,519<br>1,530,683<br>250<br>109,040<br>3,867,043<br>230,829<br>198,989<br>77,339|
|---|---|---|---|---|---|
||||||6,014,173|
||||||(4,917,045)<br>(217,900)|
||||||(5,134,945)|
||||||(10,393)<br>-|
||||||868,835<br>-|
||||||868,835|
||||||868,835<br>-|
||||||868,835<br>21,659,405<br>-|
||||||22,528,240|



## 24. Analysis of net assets between funds 

**Analysis of net assets between funds** 

|Tangible fixed assets<br>Investment properties<br>Investments<br>Cash at bank and in hand<br>Other net current assets/(liabilities)<br>Creditors falling due after more than one year|Endowment<br>fund,<br>revaluation<br>reserve and<br>share capital<br>£<br>8,536,585<br>0<br>0<br>0<br>0<br>0<br>8,536,585|Unrestricted<br>General fund<br>£<br>9,500,918<br>0<br>0<br>1,405,415<br>(311,789)<br>(2,182,957)|Unrestricted<br>Designated<br>funds<br>£<br>0<br>2,525,000<br>0<br>1,196,736<br>6,750<br>0|Restricted<br>funds<br>**Total 2023**<br>£<br>**£**<br>0<br>18,037,503<br>0<br>2,525,000<br>885,144<br>885,144<br>920,873<br>3,523,024<br>0<br>(305,039)<br>0<br>(2,182,957)<br>1,806,017<br>22,482,675|
|---|---|---|---|---|
|||8,411,587|3,728,486||



45 



St John’s College, Durham Members’ Report and Financial Statements 31 July 2023 



**----- Start of picture text -----**<br>
 Endowment<br>fund,<br>revaluation   Unrestricted<br>reserve and   Unrestricted  Designated   Restricted<br>share capital  General fund  funds  funds   Total 2022<br>£ £ £ £ £<br>Tangible fixed assets 7,591,650 10,136,352 - - 17,728,002<br>Investment properties - - 3,652,500 - 3,652,500<br>Investments - - - 901,334 901,334<br>Cash at bank and in hand - 1,658,292 861,462 633,858 3,153,612<br>Other net current assets/(liabilities) - (684,561) 7,586 - (676,975)<br>Creditors falling due after more than one year - (2,882,063) - - (2,882,063)<br>7,591,650 8,228,020 4,521,548 1,535,192 21,876,410<br>**----- End of picture text -----**<br>


## 25. Related Party Transactions 

The College did not engage in any related party transactions in the current or prior year. 

## 26. Contingent Liabilities 

The College participates in the Universities Superannuation Scheme (USS) pension scheme. As at the year end the College had 7 active members within the scheme (2021: 8 active members). The scheme administrators estimate that at 31 March 2023 the employer debt on withdrawal from the scheme would be £525,000. The debt would only crystallise upon the complete withdrawal of all members from the scheme. This is a significant reduction from the estimate as at 31 March 2022 – this reflects changes in a range of conditions over the period and is broadly consistent with other Section 75 debt calculations we have seen. 

46