Registered ChArity No. 1143939 KtNG•S COLLEGE LONDON THEOLOGICAL TRUST Report fdDd FiRanciAI Statements Year ended 31 July 2021 iaNG'S COLLEGE LONDON THEOLOGICAL TRUST Contents Page TrM$te¢s and profe&gLODal Advisers Tnute¢s' rtport Statement ofTrustees' respoDsibilities Independent Aodltor's report Statement of fmaneial activiti Balance $heet Cash llow sthtejnenl io Notes to the a¢counts KINGYS COLLEGE LONDOI, THEOLOGICAL TRUST REFERENCE ALIT ADML INISTRATIVE DETAILS TRUSI EES The Reyd Dr Giles Legood- Chairnian The Reyd Canon Dr Alison Joyce- representing The Bishop of London (ex officio)- frotn 9 March 2021 Professor E Byrne, Principal of King's College Lrndon (ex offIcio)- to 31 January 2021 Professor ShkknJ Kapur, Principal of King's College London (ex offi¢io}- from l June 2021 The Revd B8ny Nichols The Revd Canon Dr Hazel Whitehead Archbishop Sosiah Idoww-Fearon The Revd Jennie Hogen TRUST ADDRESS King's College London Str￿d London WC2R 2LS AUDITOR KPMG I.I.P Chartered Accountants & Registered Auditor 15 Canada Square London E14 5GL BANKERS CAF Bank Ltd 25 Kings Hill Ayenue Kings Hill West Malling Kent ME19 4JQ KING'S COLLEGE LONDON THEOLOGICAL TRUST TRUSTEES, ANYUAL REPORT Year ended 31 July 2021 The Trustees present their awiual report and financial statements of the charAty for the year ended 31 July 2021. The fu￿1¢Ial stat¢llkents have been prepared in accordance with tho accounting ty)li¢ies set out in note I to the accounts and colnpl). with the ch￿ltieS Act 2011 and Accotmting and Reporting by Charities.. Statement of ReCom￿ended Prartice applicable to charities prepaTi￿o their ￿Counts in ￿cOrdanCe with the Finaticial ReportiTrg Stsndard applicable to th¢ UK and Republic of Ireland published OD 16 July 2014. OBJEcfs AI￿D ACTIVITIES The objects of the Trus¢ as %t out in the Scheme, as follows.. - l. tbe provision of or assisting in the provision of residential acwmmodation for stLL¢knts ID tbe Deparknent of Theology and Religious s￿dIes of Kitig's College London; 2. fiffibering the education of such students, and of fomer students of the said Depath¢nt in such ways &$ the T￿￿tee5 think fiL 3. fi￿￿ering the vocational training of such students OT fotiner students and in particular of those who intelld to seek ordiDation in the Chur¢h of England. and 4. the advancement of tbe Christian rel￿trIOn, particularly in accordance with the doctrines of the Church of Englan4 ajnong such sthdents and fornier students. The trustee$ achieve these objects principally through ttLe award of grants. In particular, they intend to support postgradu*e overseas student5 from developing countries undertaking doctt)TalJmasters researclL 2nd to make individual grants lo home students undertaking courses in the Department of Theology. Vocational training towards the ordained millistry will be furthered with eolltinuing grants towards schemes organis¢d through the Dean's Office. The ITUStees confTh that th¢y have Tere￿ed to the guidance contsined in the Charity Commission'5 g¢ll¢ral guidance on public b¢nefit when reviewing the Trust's aims and objectives and in planning fvture artivities and setting the gratst wking policy for the year. ACHIEVEMENfs AM) PERFORMANCE During the year, tbe Trust funded three overs¢as 5rbolarships to a student studying for postgraduate qualifications witbin the Departhent of Theology and R¢ligious Studie5 of King's College London. These scholarships 2Ee awarded to students who able tt> b¢ll¢fit from the educatioll￿ opportwiity offered by the dep2rtm¢nt who are unable to olAaiu an education at this level in their own cowity and who are expected to make a gigllificant contnl>ution to the religious life of their country tbrough the medium of one of th¢ Cbristian dominations. tn addition, tbe Thist received three appli¢ations for individual small grants and all were successful io being awarded fi￿ds. These aw2rds are made principally to assist with the Cost of ￿ltIOn fees for hom¢ Students, although requests for other purposes, such as thesis preparation and lrnvel in connectiory with research are also considered. The Thist also provided support to the Chaplaincy at King's Colleg¢ Londots by fLmdin8 two a5Si5tants which has enhanced the work of the chaplains. These awards assist with the vocational trainitig of students. Past assistanis have contsThu¢dto roinister within the chl￿Ch. FINAI¥CIAL REVIEW The toial income forthe year, derived entirely from illvesttnents and bank deposits was £140,054. The total expenditure for the Ye￿ was £173.192. The eXpeLditl￿ Consisted of of £118,971 to six swdents, £44,430 expenditure in firth¢ring the ¢ducation and vocational training of s￿d¢￿tS and fornier studenis of the Departhent of Theology and Religious Stsdies of King's College LondoD and £4,871 on management and administration, and the audit f¢¢ of £4,920. The excess of expenditure over income for the Y￿rw￿ £33,138. During the year, the market value of the Trust’s investments increased by £78 ,630 to £5,303 845. Total funds of the charity as at 31 July 2021 amounted to £5,626,327. The trustees’ policy is to maintain a capital base from which to generate income to support future beneficiaries. They achieve this by adding to the original capital sum all capital gains arising from the Trust’s investments and only spending income. As at 31 July this capital reserve amounted to £5,207,458. In addition, the Trustees maintain an income reserve as a cushion against those years in which expenditure exceeds income. This may occur because there are a higher number of applicants which the Trustees consider deserving of support, or because circumstances result in a student requiring support over a longer period than was originally envisaged. To give the Trustees this flexibility and to ensure that the Trust can continue to support a student through to completion of their course, even when this has had to be extended for unforeseen reasons, the Trustees have decided to maintain a reserve of between 6 and 12 months of annual expenditure. At 31 July 2021 the income reserve was standing at £4 8,869 equivalent to 30 months of expenditure, far in excess of the policy. A reorganisation within King’s College London has resulted in fewer students applying for grants and difficulties in finding overseas scholars of a sufficient standard to undertake successfully a higher degree have contributed to a decrease in expenditure in previous years; the Trustees have now identified a further two overseas scholars who will be funded during the next financial year which will assist in redressing this position. The Trust’s investment policy is to maintain the capital value of its investment, after taking into account inflationary factors and generate sufficient income to meet its objectives. During the year, the total returns on the Trust’s investment was an increase of 20.4% consisting of a 17.4% increase in the value of investments and a 3.0% income yield. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** The Trust was formed under a scheme approved by the Charity Commission on 19 September 1980. The Trust was previously treated as exempt from the requirements to register with the Charity Commission under the provisions of the King’s College London Act 1978. However, following the changes to regulation introduced in the Charities Act 2006, the Trustees decided that this exemption was no longer appropriate. On 23 September 2011, the Trust was registered with the Charity Commission in England, under Charity Number 1143939. There are seven trustees – two ex-officio trustees being the Principal of King’s College London and the Bishop of the Diocese of London or his or her nominated representative with five co-opted trustees. 3 Statement of Trustees, responsibilities in respect of the Trustees. annual report and the fLnancial statements Und¢T charity law, the trustees are responsible for preparing a Trustees. Amiual Report and fLnancial statements for each financial year which show a tnle and fair view of the stste of affairs of the charity and of the excess of expenditure over income for that period. The trustees have elected to prq)are the fmancial statemeiits in accordance with UK Accounting Standards, including FRS 102 The Financial Reporting Standard applicable rn the L'K and Republic oflreland. In preparing these financial statements, generally accepted accounting practice entails that the trnstees: select suitable ￿CoUnting p(>licies and then apply them consistently,. make judgements and ¢stimafrs tbat ar¢ r¢asonabl¢ and prnd¢nL statc whether th¢ recommendations of the Statement of Recommended Practice have been followed. Subject to any matcrial departures disclosed and exp12ined in thc financial slatements; slate whether the finan¢ial gtst¢m¢iits comply with th¢ trust deed, subj¢¢t to any material depart￿re5 disclosed and explained in the financial statem¢nts- dssess the charity's ability to continue as a going concern, disclosing, as applicable, matters Telated to going concern. and use the going concern b&%is of accounting unless they either intend to liquidate the charity or to cease operations, OT have no realistic alternative but to do so. The trustees are r¢quir¢d to att in ac¢ordan¢e with the trust deed of th¢ Charity, within the fran]ework of trust Itw. They are responsible for keeping proper accounting records, suffictent to disclose at any timc, with reasonable accuracy. the financial position of the charity at that lime, and (o enable the trnst¢es to engu￿ that, where any statements of a¢counts are prepared by them under section 132(1) of the CILaritie8 Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They arc rcsponsiblc for such intcrnal control as tbey deternittte is necess&ry to enable the preparation of financial statements that are free from ￿￿terial misstatement, whether due to fraLLd or enDr, and have gelleral reSPOTtsibklity for taking such stepq as ar¢ reasonably open to them to safeguard the assets of the Ch￿lty and to prevent and detect fraud and other irregularities. Approv¢d and 61gned QD b¢half of tEL¢ Ttust¢e5 on 11 2022, Trustte llldependent auditor'5 report to the Trustees of Killg's College Londoll Theological Trust Opinion We have audited th¢ financial ststeinents of King's Coll¢g¢ Lolldon Th¢ological Trust ('kne chaiity'j for ihe year ended 31" July 2021 wbiLh ¢ompris¢ thc statetncnt of fmancÉal activities, balance sheet, cagh flow Statement 2nd related notcs, incliiding thc accounÉing polici¢s in not¢ l. In our opinion th¢ financial statements: give a true and f&ir view of tbe 8tste of the charity's affairs as at 31" July 2021 and of it5 incoining resourccs aiid application of resources for the year then ended. bave been properly prepar¢d in accordaDCC With UK ac¢ounting btsn(tsrd5. including FRS 102 The Financial Reporting Stllndard ttppliLGble EPI the UKand Republic ofIrelaAd; and hayc bccll PTcpared in accordance with the requirements of the Charities Act 2011. Basis for opinlon We have been appoiThted a5 8uditOT undcr section 145 of the Charities Act 2011 (ar its preoeeessors) and report in accordanLe with regulations mad¢ undcr s¢ction 154 of that Act. We condurted our audit in accordance with Intcrnationai Standards on Auditing (UK) ("ISAs (UK)") and applicablc law. Our responsibih.ties are described below. We have ￿lfilled our cthical responsibilities under, and are independent of ihe charily in a¢¢ordttn¢e with, UK ethical requirements inLluding th¢ FRC Ethical Stalldard. We believe that tbe audit evidence we h8V¢ obtaincd is a sufficiciit and appropriate basis for our opinion. Going coneerTr Th¢ tru51¢¢s hav¢ prq)arEd Ibc financial statements on the going concern basis as they do not intcnd to liquidate tbe charity or io ¢ease its vp¢rdlivns, and they I￿ve coacluded that the charity's financial POSAtion means tlydt this is realistic. Tliey havc also concludcd that there are no material unecrtoirttics that could have cast significant doubt over its ability to Continue as a going concern for at least a year from the date of approv&1 of the financial statements I'the going con¢¢rn period,). In our evaluation of the trubt¢es' cimcliisions. we considered the inherent risks to the elk]rtty's busin¢ss m(Klcl and allalysed how those risks might aff￿¢ the chaiity's fmallcial ￿ourCeS or ability to continue operations over the going conccm pcriod. Our conclusions based on this work: w¢ con8id¢r that the trn8tE¢s' use of Ibe going concern basis of accounting in the preparation of the f￿at[claI statsments is appropriate; we have not identilicd. and concur with the trustees, assessment that th¢r¢ is not, a material ullccrtainty related to events or conditions that, indivtdually or ¢oll¢ctively, may cast SI￿]ficallt doubl on Ihe Charity's ability tu Lolltinue as a going concern for the going concern period. However, As we cannot predict all thtuie events or conditions and as subsequenl events njay re8uIt in oulcomcs that &re inconsistent with judgements that W¢T¢ ￿aSOnable al the time they were made, the almive conclusions are not & ￿thrantee that the charity will continu¢ in op¢ration. Fraud and breaches of laws and regulations- ability to detect Idgntifying ruponding lo nsks of material misslatement d14L& tofratsd To identify risks of material misstatement due to fraud ("fraud risks") we A8.qe49ed events or conditions that could itldicate an in¢entivr or prcssurc lo coll]mit fraud or provide an opportunity to commit fraud. Our ri6k ￿eSSMent proccdurcs includcd: Reading Meeting of Trustees minutes. Using unalytical procedures to identify any unusual or unexpected relAtionshtps. W¢ ¢ominunicatcd identitied fraud risks throug￿OUt the audi¢ team and remained alert to any indications of fraud througbout thc audiL As required by auditing standards. we wforni procedllres to address ibe risk of manageme override of controls. in particularthe risk thai mdnagement may bc in a position to make inappropriate a¢counting ¢lltrie$. On this audit we do ntst belicv¢ there is a fraud risk related to revenue recogniii()n b¢¢ause the revenu¢ streams are non-complex and can b¢ simply and direLrtIy agrced lo independent third party reports. We did Dot identify any additional fraud risk& Ive ￿rfortned procedures including.. R¢viewing all transactions po8ted #cr05s ￿ritsd 1- 12. and thDse FK>S¢￿ in pcriod 13. and comparing dny material identified entries to $upportTng documentatson via relaied sllbsiaDtiv¢ procedures. Idenlifying ¢7nd responding ¢0 rifLY of malerwl niiislalemenl related io compliance wyih laws and regulations W¢ identified Areas ot. laws aad regulations that could r¢&sonably b¢ expecled tv have a mat¢rial e£fect on the fu￿nCIal statements from our general commercial and sector experience (as required by audiling standards), and discussed with the trustces and oiher management th¢ policies and procedures regarding ¢Limpliancc with law8 and ￿gUlatioD5. We comniunicated identified laws and regulatio￿$ througbout our team and remained alert to any indications of non-rompliance throu¥houl th¢ audit. The potential effect ofihcse laws and regulath.ons on the financial ststernents Varies considerably. Firstly. the Trust is subject to laws 8nd reglllatioMs that directly affcct the financial statements including fina￿10] rcporting l¢gi51ation (inclllding r¢]ated Ghariti¢s legislation), al￿ we ass¢5sed ihc exteni ofcompliance with thesc laws and regu]8tions as part of our pr(Kedures on the related fll]2ncial statemeni items. Ivhilst thc compally 15 subject to many othcr laws and regulation8. wc did not identify any others where the consequences of non 4,920) 322,482 4.000 355,620 TOTAL ASSETS LESS CURRENf LIABILrrIES 5,626.327 4,872,835 FuDd5 UnT¢stiicted funds 5,626,327 4,872,835 The financial statements wcr¢ approved by the Trustees on li r14rtL 2022 ana signed on their behalf. Trnstec IaNG'S COLLEGE LofiDON TIIEOLOGICAL TRUST CASH FLOW STATEMENT for the Period l August 2020 to 31 July 2021 Note 2021 2020 Net Cash Outflow From Oper4tin% Activities {173,715) (167,239) Cash flows from investing activities.. Interest and dividends 140,054 135.957 Net cash provided by investing activities 140.054 135,957 Chi￿ge fin casb and cash equivalents in the year (33,661) (31,282) Cash and cash equivalents brought forward Cash and cash equivalents Carried foriyard 314,778 346 060 281,117 314,778 10 KING'S COLLEGE LONDON THEOLOGICAL TRUST r+lOTES TO THE ACCOUTr4TS Year ended 31 July 2021 I ACCOIJNTING POLICIES Th¢ Fittancial and Reporting statejnents pr¢paT¢d ill a¢cordallce with the Statement of Recollunendcd Practice"Accountillg and Reporting by Charities" (FRS1021 tssued in January 2015, arjd applicable accounting.%Lqud2rds. Kittg's College London Theological TTh￿l meets the definition of a public benefit entity under FRSIO2. The TTU&tees con5idEI that there are no material uncertaillties about the TTUSt's ability to cotttinuc 88 a going oonceTn. The Trusiee$ have reviewed cash flow forecasts for a peri￿5 of twelve ￿￿￿t￿5 from the date of approvdl of thebe fin&ncidl slatemcnts, wliich indicate tbat, taking accollrt of reasonable possible dO￿￿SideS such as no income for twelve months and a I ￿/0 decrease in the value of investment5, the TTUSt will hAvc 5uffieiettt funds. to meet its liabilities as they fall due for that period. The most sIg￿lfICant areas of adjushnent and key assiimptions are to do with the carrying value of as8¢ts held by the Tru$t and thc level of investrllent return and the pertomLmce of investment markds. lThe particul&r accourjting policies adopted by the Trustees are described below. Ac£ounting conventlo The financial statements are prepared und¢r the hi8LOtieal cosi convention as mi)dkfied by the revaluation ot Investments ID market value. Fund accountln Unrestricted thnds iepresent accumulaied in¢om¢ and gains toLYtb¢r witb Ibe OribTinal Lapital Sum provided to ¢stydbligh the Trust. The funds are expendable at th¢ discretion of the Tllistees in the furtheiance of the objects of the charity and D]ay be used ts) finance both warking capital and ¢&pilal investment. It is the policy of the T￿Steel to maintaiii a capital fund froni which to geneTate income to support future beneficiaries wknch they do by addillg capital gasns aTi5ing ftom the Trust's inv¢8tmentq to the original sum. resouree5 AU incon)c is recogni8¢d in the stament of financial activities when th¢ conditions for receipt bave been met and there 1.8 reasonable assurance of receipt. Where * Claim for repayllent ofin¢om¢ tsx ha8 OT will be made: such incornc is gros%cd up for tbe tax recoverable. Legacy gifts are recugnised OD a case by c&se b&sis following the I￿nting of proba￿ when the adrninistratorlexecuto¥ for the estate bas comniun1cat￿ in writinb both tbe amouDI and Settle￿