OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION

A CHARITABLE COMPANY LIMITED BY GUARANTEE

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

REGISTERED CHARITY No 1153702 REGISTERED COMPANY No 08426223

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

Contents Pages
Trustees' Report 1-6
Independent Auditors Report 7-9
Statement of Financial Activity
incorporating the Income and Expenditure Account 10
Balance Sheet 11
Statement of Cash Flows 12
Notes to the financial statements 13-21

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

The Directors (also referred to as Trustees for the purpose of charity law) present their report with the financial statements of the charitable company for the year ended 31 March 2023. The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 and 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 published in October 2019.

The term ‘Institute’ in this report refers to ‘The Faraday Institute for Science and Religion’.

Reference and Administrative Details

The Company was incorporated on 1 March 2013 and registered with the Charity Commission for England and Wales on 6 September 2013.

Structure, Governance and Management

The operation of the Charity is governed by its Articles of Association. It is a company limited by guarantee and a charity registered with the Charity Commission of England and Wales. HM Revenue Customs & Customs have recognised the charity for tax purposes. Since the charity only uses its funds for charitable purposes no taxation is then payable on the income or gains. The overall responsibility for the operations of the Charity and its finances is with the Trustees. On 1 October 2018 The Faraday Institute moved from being under the governance of the Fellows of St Edmund’s College, Cambridge to independent governance under The Faraday Trust for Science and Religion: On 18 December 2018 The Faraday Trust for Science and Religion registered a name change to The Faraday Institute for Science and Religion to reflect the new governance of The Faraday Institute.

Professor Paul Ewart served as Director until 30 September 2022. Graham Budd took up the position of Director on 1 October 2022.

Trustees

The Trustees during this period were: Dr Denis Raven Alexander, Mr Graham Budd, Revd Dr Andrew Davison, Professor Paul Ewart, Professor John Stanley Hill Gaston, Dr Rodney Dennis Holder, Dr Jimmy Chan, Professor Russell Cowburn, Dr Harvey McMahon, Dr Diane Lister (appointed 14 January 2023), Dr Norman Fraser (appointed 5 January 2023), Dr Rebecca Fitzgerald, Dr Christine Nisbet, Mrs Polly Stanton, Mr Christopher Townsend, and Professor Robert Stephen White. Professor Paul Ewart ceased to be a Trustee on 30 September 2022.

The recent appointment of additional Trustees broadens the spread of expertise that is available to the Charity as it continues to expand the range and volume of its activity. Under Articles of Association, there shall be not less than ten Trustees. New Trustees are appointed by the Trustees. Prior to appointment (or re-appointment), all Trustees are required to confirm their agreement to maintain the Christian ethos of the Charity and at least 75% of the Trustees must have affirmed the Basis of Faith in the Articles of Association. Each Trustee retires at the fifth annual meeting of the Trustees following their appointment and, if otherwise eligible, may be appointed for a further five years if the Trustees so decide. On appointment each Trustee receives copies of the principal constitutional and policy documents of the Company, with current and forward financial planning information. Trustees are provided with regular updates of relevant information from the Charity Commission and other relevant sources.

1

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Charitable objects

The objects of the Charity are as follows:

  1. The Charity’s objects are, for the public benefit, to advance education in the field of science and religion by carrying out research in all aspects of that subject, publishing the useful results in academic journals and books and improving the public understanding of issues in the field of science and religion by disseminating research results more widely beyond the academic community and through lectures, courses and the publication of other educational resources, and to advance such charitable purposes (according to the law of England and Wales) as the Trustees see fit from time to time which are connected with the charitable purpose stated above.

  2. The Charity has a Christian ethos, and accordingly in furthering the above objects the main focus of its research work is on the relationship between science and the Christian faith, and it shall emphasise the education of the Christian community in issues of science and faith, but shall also welcome and seek to engage with a wide variety of other faith traditions, and with those of any faith or none.

Achievements and Activities undertaken for Public Benefit

The Trustees have had due regard to the public benefit guidance issued by the Charity Commission. The activities of The Faraday Institute may be summarized under three headings:

Explore

Shedding new light on life’s big questions, through academically rigorous research in the field of science and religion.

Equip

Providing life-changing resources for those with interests in science and faith, through research, dissemination, education and training.

Engage

Catalysing a change in attitude towards science and faith, through outreach to schools, colleges, the scientific community, religious institutions and the general public.

To date The Faraday Institute has amongst its outputs of public benefit:

2

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

In 2022-23 a full programme of seminars, courses, conferences and workshops was delivered. Most of our events were delivered in a hybrid format with in-person audiences as well as simultaneous live-streaming via Zoom to online participants, allowing the Institute to broaden the reach of these events, building on the learning during the Covid pandemic of how to successfully deliver hybrid events.

The 2022 Faraday Summer Course took place on the theme of “Science and Faith Perspectives on the Art of being Human”. The course was delivered for the first time in hybrid format to cater for an online audience alongside in-person Cambridge delegates. Two or three lectures were broadcast each day over six days at Lucy Cavendish College, Cambridge. 45 Cambridge participants took part with over 100 online participants from the UK and overseas including 87 from Iran and 3 from China.

An in-person three-day course in partnership with Scholarship and Christianity in Oxford was held for around 30 US undergraduate students in Cambridge in September 2022.

A one-day course was held in partnership with Westminster College on the topic of chronic pain.

10 Faraday Research Seminars took place, in hybrid format, drawing a total in person audience of 183 and 353 online.

The Institute hosted the science and religion play “Fire from Heaven” about the life of Michael Faraday, and two public lectures. Dr Nicholas Spencer spoke on the topic of “Quintessence of Dust, Science, Religion, History and the Human”, and Professor Paul Shellard spoke on the topic of “The Beginning of All Things – Modern Perspectives from Lemaitre to Hawking”.

For the past 3 years, Theos and The Faraday Institute for Science and Religion have been working on a project researching public and expert understanding of, and attitudes to, science and religion in the UK today, funded by the Templeton Religion Trust.

In April 2022 we launched our report: https://faraday.institute/moving-away-from-the-shallow-end.

Over 5000 UK adult respondents took part in the survey based on over 200 questions/statements undertaken by YouGov. One hundred leading experts were interviewed – scientists, philosophers, theologians, communicators, from Susan Greenfield, Sue Black and Angela Saini to Brian Cox, A.C. Grayling and Adam Rutherford. Topics explored included evolution, AI, and life on other planets.

During 2022-23, the Youth and Schools Programme delivered a full programme of more than 180 sessions in schools, churches and festivals reaching over 6300 children and young people. In addition, 70 training sessions for over 700 teachers, trainee teachers and youth workers were delivered, enabling those who teach and work with young people to better take an integrated and holistic approach to dealing with science and religion topics. Video resources were developed for overseas teacher training, in particular for teachers in Ukraine. The Youth and Schools Programme continued to publish high quality resources to support training and youth events. Work is under way on a new book “God’s Cosmic Cookbook”, and to market and promote recently published children’s books, including “God Made the Dinosaurs” (SPCK, February 2022), and “101 Great Big Questions about God and Science” (Lion Hudson, March 2022).

The Church Engagement Programme undertook 56 events during 2022-23 including for Vineyard, United Reformed and New Wine church leaders, training at Ridley Hall, Sarum College and St Mellitus, Greenbelt festival, UCCF student work, sermons, public lectures and cathedral events. Output on science and religion themes was published in blogs and Bible study notes. The Churches section of the Faraday website received over 50,000 views, and social media (Twitter and Facebook) attracted over 100,000 views.

Three students from Hong Kong spent the academic year studying at the Institute, undertaking the Faraday “Study in Cambridge Tutorial Programme” on Science and Religion during 2022-23, which is now in its fourth year.

3

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

The use of the Institute’s online resources continued to increase. There were 7,519 views of Faraday media items (audio and video), and the Faraday Institute’s website remains the 7th most visited site in the University of Cambridge out of a total 163 Colleges, Departments and Institutes, via the University’s streaming service. Social media traffic also increased with the Institute’s YouTube channel subscriber numbers growing from 1,700 to 2,084 during the year, with 16,045 viewings. During the same period the Institute’s Twitter following grew from 4,253 to 4,303 and Facebook followers grew to 5,029. The number of subscribers receiving the monthly newsletter increased from 4,565 to 4,625.

Plans for the future

The Faraday Institute became legally independent of St Edmund’s College on 1 October 2018, though it maintains strong academic links with the College, enabled by a signed Academic Agreement. The Institute moved to new premises in the Woolf Building on the Westminster College Campus in September 2017, which enabled further expansion of its activities. The Institute joined the Cambridge Theological Federation (CTF) as an Associate Member in summer 2018, thereby retaining its affiliated status within the University of Cambridge. During 2021-22 The Faraday Institute became a full Member of the CTF. Full membership allows the Institute to have the benefit of Visa Sponsorship that is important for the Tutorial Course Programme for overseas students. The Institute is in the process of expanding this Programme to also be able to offer one-semester courses for visiting students from the USA and Europe. The Institute has also been investigating the purchase of a residential property in Cambridge, for the purpose of accommodating students coming to Cambridge for the Tutorial Course programme. Fundraising for this project is ongoing and up to March 31st 2023, £141,720 has been donated.

An important aim of the development of the Tutorial Course Programme is to provide sustainable income to meet the core running costs of the Institute. In addition, the Institute is looking to expand its grant-funded research programmes which provide associated overhead funding that helps to improve the financial stability of the Institute.

Financial Review

The Faraday Institute continues to seek financial grants and donations to support the current activities and to build up a financial reserve for the support and development of future activities. Income for the year totalled £757,461 (2022: £751,593), and expenditure for the year was £810,250 (2022: £846,306). The net deficit for the year, after realised and unrealised gains and losses on investments totalled £120,531 (2022: £55,222). At the year end, the Charity held free reserves of £1,842,242 (2022: £1,766,667), restricted funds of £426,693 (2022: £551,050), and designated funds of £73,362 (2022: £67,735)

Risk Management

The Trustees are responsible for the management of risks the Charity faces. Day-to-day identification, monitoring and mitigation of risks are delegated to the Director of The Faraday Institute. The Trustees are satisfied that all significant risks have been reviewed and procedures are in place to manage those risks, including:

  1. Funding risks Research projects are fully funded by research grants before their start The Charity is actively diversifying and deepening its donor base

The Charity is establishing an endowment to provide long-term funding of core activities

  1. Personnel risks

The Charity has instituted advance succession planning for senior staff

The Charity is expanding and developing its senior team to share management responsibilities 3. Financial risk

Cash is held at three different FSA accredited banks.

4

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Reserves Policy

It is the intention of the Trustees to maintain a reserve, firstly to provide income to support the purposes of The Faraday Institute and secondly, as a fund from which capital can be withdrawn to cover budgeted expenditure not covered by current income. Net current assets at 31 March 2023 were £1,202,778, which the Trustees do not consider to be excessive given the unpredictability of timing of future programme and research grant funding.

Investments

The Faraday Institute adheres to Charity Commission guidance on ethical investments, and may from time to time, where it is consistent with that advice, require Smith & Williamson (Investment Managers, now known as Evelyn) not to make direct investments in specific companies or collective investment schemes. Such companies shall include tobacco companies, arms companies trading with terrorists or with countries with which the UK government does not permit them to trade, those dependent upon pornography or child labour, and those in which the investment portfolio is more than 25% in oil and gas. The Trustees passed the following resolution on 13 July 2021: “We resolve that our investment portfolio with Smith & Williamson should, within a period of two years, have its investment in fossil fuels reduced to less than 2% of the total, with not more than 10% of any specific fund being so exposed, and that, with respect to investments in the energy sector, a preference should be given to investments in renewable energy”.

The portfolio held by Smith & Williamson decreased from a market value of £1,190,868 at the start of the year to £1,139,518 as at 31 March 2023.

Key Performance Indicators

The Faraday Institute does not operate any Key Performance Indicators as such, however regular reports are submitted to grant sponsors which report performance and outputs against those listed in the grant proposals.

Pay policy for staff

All Trustees give their time freely and no Trustee received remuneration for their role as a Trustee during the year. The Faraday Institute uses a pay scale that is similar to the Cambridge University pay scales together with job descriptions as guidance. The annual cost of living rise matches that agreed by the University. Each pay scale has annual increments of approximately 2% in addition to the cost of living increase, until the top of the scale is reached.

Registered Office

The Faraday Institute for Science and Religion. The Woolf Building. Madingley Road. Cambridge. CB3 0UB

Bankers

The Co-operative Bank plc. PO Box 250. Delf House. Skelmersdale. WN8 6WT Barclays Bank plc. 28 Chesterton Road. Cambridge. CB4 3AZ

Investment Managers

Smith & Williamson (Evelyn), 25 Moorgate, London, EC2R 6AY The Co-operative Bank plc. PO Box 250. Delf House. Skelmersdale. WN8 6WT Barclays Bank plc. 28 Chesterton Road. Cambridge. CB4 3AZ

5

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Statement of Trustees' Responsibilities (continued)

The Charity Trustees (who are also Directors of The Faraday Institute) are responsible for preparing the Trustees’ 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 Trustees to prepare financial statements for each financial period, which give a true and fair view of the state of the affairs of the Charitable company and of the incoming resources and application of resources, including the income and expenditure, of the Charitable company for the period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy, at any time, the financial position of the 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to Disclosure of Information to our Auditors

In so far as the trustees are aware, there is no relevant audit information of which the Charity’s auditors are unaware, and they have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the Charity’s auditors are aware of that information, and they have made such enquiries of their fellow trustees and of the Charity’s auditors for that purpose, and taken such other steps (if any) for that purpose, as required by their duty as trustees of the Charity to exercise due care, skill and diligence.

Approved by the Trustees and signed on their behalf by:

20th December 2023

………………………………. Prof. Robert White - Chair of Trustees

Date

6

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION INDEPENDENT AUDITORS REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Opinion

We have audited the financial statements of The Faraday Institute for Science and Religion (the charitable company) for the year ended 31 March 2023 which comprise Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, 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 March 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

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

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the 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.

7

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION INDEPENDENT AUDITORS REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Other information (continued)

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.

Opinion on other matter 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 for the financial year for which the financial statements are prepared is consistent with the financial statements; and

Matters on which we are to required to report by exception

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

Responsibilities of trustees

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

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

Auditor’s responsibilities for the audit of the financial statements

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

8

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION INDEPENDENT AUDITORS REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023

Auditor’s responsibilities for the audit of the financial statements (continued)

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the annual financial statements from our general commercial and charitable company specific experience, through discussion with the Trustees (as required by auditing standards), and from inspection of the charitable company's regulatory correspondence, and we discussed with the Trustees the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indication to non-compliance throughout the audit; the audit team are deemed both competent and capable of identifying non-compliance with rules and regulations.

The potential effect of these laws and regulations on the annual financial statements varies considerably. Firstly, the charitable company is subject to laws and regulations that directly affect the annual financial statements including financial reporting legislation and taxation legislation, and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related annual account items. Secondly, the charitable company is subject to other laws and regulations where the consequences of noncompliance could have a material effect on the amounts or disclosures in the financial statements, for instance non-compliance with industry regulations. We assessed the risk of fraud in the financial statements through discussion with management and from our experience of the charitable company. We communicated identified fraud risk areas throughout our team and remained alert to any indication of fraud throughout the audit. In particular, we assessed the potential impact of the global pandemic known as Covid-19 on the risk of fraud. We did not identify any instances of fraud during the course of our audit.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and inspection of regulatory and legal correspondence, if any. Through these procedures, we did not become aware of any actual or suspected non-compliance with laws and regulations. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditorsresponsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of our report

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

Stuart Graham Berriman (Senior Statutory Auditor) For and on behalf of Chater Allan LLP Chartered Accountants & Registered Auditors 7 Quy Court, Colliers Lane Stow-cum-Quy, CB25 9AU

Date: 21 December 2023

Type text here

9

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION STATEMENT OF FINANCIAL ACTIVITIES (Incorporating the Income and Expenditure Account) FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted Funds Unrestricted Funds
General Designated Restricted Total Total
Funds Funds Funds Funds Funds
2023 2022
Note £ £
Income from:
Donations and legacies 190,227 5,379 - 195,606 163,477
Charitable activity
Advancement of Education 223,171 14,146 293,307 530,624 560,657
Other trading activities
Sale of materials 5,135 - - 5,135 4,636
Investment income
Interest receivable 3,135 - - 3,135 3,423
Dividend income 22,961 - - 22,961 19,400
Total Income 444,629 19,525 293,307 757,461 751,593
Expenditure on:
Raising funds 2 6,569 - - 6,569 6,928
Charitable activity
Advancement of Education 3 402,678 41,539 355,151 799,369 834,814
Other trading activities
Purchase of materials 4,312 - - 4,312 4,565
Total Expenditure 413,559 41,539 355,151 810,250 846,306
Transfer between funds 45,492 27,641 (73,133) - -
(Loss)/Gains on investment assets 7 (67,742) - - (67,742) 39,491
Net income/(Expenditure) and net movement 8,820 5,627 (134,977) (120,531) (55,222)
in funds for the year
Total funds brought forward 2,729,075 67,735 662,559 3,459,370 3,514,591
Prior year adjustment 14 100,889 - (100,889) - -
Total funds carried forward 2,838,784 73,362 426,693 3,338,839 3,459,370

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised during the year

10

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION BALANCE SHEET AS AT 31 MARCH 2023

(REGISTERED COMPANY NUMBER 08426223)

Note
FIXED ASSETS
Tangible fixed assets
5
Intangible fixed assets
6
INVESTMENTS
7
CURRENT ASSETS
Stocks
Debtors
8
Short term deposits
Cash at bank and in hand
CURRENT LIABILITIES
Creditors due within one year
9
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
FUNDS OF THE CHARITY:
Unrestricted funds
Designated funds
10
Restricted funds
11
TOTAL FUNDS		 £
£
28,143
968,400
1,139,518
2,695
56,712
257,421
948,166
1,264,994
62,216
1,202,778
3,338,839
2,838,784
73,362
426,693
3,338,839
2023		 £
£
28,143
968,400
1,139,518
2,695
56,712
257,421
948,166
1,264,994
62,216
1,202,778
3,338,839
2,838,784
73,362
426,693
3,338,839
2023		 £
£
38,269
1,035,650
1,190,868
2,521
59,490
455,000
716,154
1,233,165
38,581
1,194,584
3,459,370
2,840,584
67,735
551,050
3,459,370
2022		 £
£
38,269
1,035,650
1,190,868
2,521
59,490
455,000
716,154
1,233,165
38,581
1,194,584
3,459,370
2,840,584
67,735
551,050
3,459,370
2022
1,264,994
62,216		 1,233,165
38,581
3,338,839 3,459,370
2,838,784
73,362
426,693		 2,840,584
67,735
551,050
3,338,839 3,459,370

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

Approved by the Board of Trustees and signed on their behalf by:

20th December 2023 …………………………………….. ……………………… Prof. Robert White - Chair of Trustees Date

11

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION STATEMENT OF CASH FLOWS AS AT 31 MARCH 2023

Note
2023
2022
£
£
Cash flows from operating activities
1
36,895
(72,238)
Cash flows from investing activities:
Purchase of tangible assets
(2,462)
(19,643)
Net cash provided by/(used in) investing activities
(2,462)
(19,643)
Change in cash and cash equivalents in the reporting
2
34,433
(91,881)
period
Cash and cash equivalents at the beginning of the
reporting period
1,171,154
1,263,035
Cash and cash equivalents at the end of the reporting
period
1,205,587
1,171,154
Notes to Cash flow statement
1. Reconciliation of net income for the year to net cash flow from operating activities
2023
2022
£
£
Net movement in funds
(120,531)
(55,222)
Adjustments for:
Depreciation charges
12,588
9,612
Amortisation charges
67,250
67,250
Dividends and interest from investments
(22,961)
(19,400)
Investment administration fees
6,569
6,928
Loss/(Gains) on investments
67,742
(39,491)
Decrease/(Increase) in debtors
2,778
(44,528)
(Decrease)/Increase in creditors
23,633
2,587
(Increase) in stocks
(173)
27
Net cash inflow (outflow) from operating activities
36,895
(72,238)
2. Analysis of cash and cash equivalents
At 1
At 31
April
Cash
March
2022
flow
2023
£
£
£
Cash at bank and in hand
716,154
232,012
948,166
Short term deposits
455,000
(197,579)
257,421
1,171,154
34,433
1,205,587		 Note
2023
2022
£
£
Cash flows from operating activities
1
36,895
(72,238)
Cash flows from investing activities:
Purchase of tangible assets
(2,462)
(19,643)
Net cash provided by/(used in) investing activities
(2,462)
(19,643)
Change in cash and cash equivalents in the reporting
2
34,433
(91,881)
period
Cash and cash equivalents at the beginning of the
reporting period
1,171,154
1,263,035
Cash and cash equivalents at the end of the reporting
period
1,205,587
1,171,154
Notes to Cash flow statement
1. Reconciliation of net income for the year to net cash flow from operating activities
2023
2022
£
£
Net movement in funds
(120,531)
(55,222)
Adjustments for:
Depreciation charges
12,588
9,612
Amortisation charges
67,250
67,250
Dividends and interest from investments
(22,961)
(19,400)
Investment administration fees
6,569
6,928
Loss/(Gains) on investments
67,742
(39,491)
Decrease/(Increase) in debtors
2,778
(44,528)
(Decrease)/Increase in creditors
23,633
2,587
(Increase) in stocks
(173)
27
Net cash inflow (outflow) from operating activities
36,895
(72,238)
2. Analysis of cash and cash equivalents
At 1
At 31
April
Cash
March
2022
flow
2023
£
£
£
Cash at bank and in hand
716,154
232,012
948,166
Short term deposits
455,000
(197,579)
257,421
1,171,154
34,433
1,205,587		 2023
2022
£
£
36,895
(72,238)
(2,462)
(19,643)
(2,462)
(19,643)
34,433
(91,881)
1,171,154
1,263,035
1,205,587
1,171,154
36,895
(72,238)
At 31
Cash
March
flow
2023
£
£
232,012
948,166
(197,579)
257,421
1,171,154 34,433
1,205,587

12

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 ACCOUNTING POLICIES

1.1 Basis of preparation

The financial statements have been prepared under the historical cost convention except for investments, which are included at market value. 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The Faraday Institute for Science and Religion meets the definition of a public benefit entity under FRS 102.

Description of Fund Types

Unrestricted Funds may be used for any purpose permitted by the Charitable Deed.

Restricted Funds are funds under the control of the Trustees, the assets and net income of which may be used only for certain purposes.

1.2 Going concern basis

The Trustees consider that the going concern basis is appropriate as they consider the reserves levels and expected investment income to be at sufficient levels to ensure that the Trustees can meet their financial obligations for the next 12 to 18 months. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

1.3 Income

Donations and grants are treated as income when any conditions imposed by the donor concerning the transfer of funds have been met.

Income from activities to generate funds is treated as income in the period the event took place. Income related to future years is treated as deferred income.

Gift Aid is recognised when the company is entitled to it.

1.4 Expenditure and Liabilities

Expenditure is accounted for on an accruals basis. Expenditure is apportioned between activities on the basis of purpose and shown in the appropriate category, unless it is immaterial in the context of these accounts.

Grants payable are treated as resources expended when there is an obligation to transfer funds.

Costs in relation to the administration of the charity are allocated to governance costs.

1.5 Pension costs

The Charity operates a defined contribution pension scheme. Contributions payable to the pension scheme are charged to the SOFA in the period to which they relate

1.6 Investments

Investments are stated at market value.

1.7 Fixed Assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Computer equipment - 33% on cost

Office equipment - 10% on cost

Intangible fixed assets

The lease premium is being written over evenly over 20 years, which commenced on 24 August 2017.

1.8 Stocks

Stocks of materials are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

1.9 Taxation

The Charity is a Registered Charity and all income and expenditure is for charitable purposes. As registration as charity has been recognised by HM Revenue & Customs for tax purposes no provision is required for taxation on income received and capital gains.

13

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

2 RAISING FUNDS

RAISING FUNDS
Investment administration fees
Total		 General
Designated
Funds
Funds
£
£
6,569
-
6,569
-
Unrestricted Funds		 Restricted
Funds
£
-
-		 Total
Total
2023
2022
£
£
6,569
6,928
6,569
6,928

3 EXPENDITURE ON CHARITABLE ACTIVITY

Advancement of Education

Direct costs
Research
Awards granted
Associated organisations
Salaries (note 4)
Staff costs
Office costs
Professional fees
Events and activities
Travel and subsistence
Marketing costs
Hospitality
Website development
Printing, stationery and telephone
IT equipment
Office equipment
Miscellaneous
Consultancy fees
Insurances
Bank charges
Currency charges
Depreciation charge
Amortisation
Support costs
Governance
Accountancy
Audit
Total		 General
Designated
Funds
Funds
£
£
329
35
-
-
17,821
-
195,101
41,444
416
-
3,610
-
17,168
-
60,935
-
2,435
34
1,947
-
94
-
-
-
4,129
3
2,315
17
957
-
328
6
10,991
-
5,937
-
1,106
-
-
-
2,909
-
67,250
-
2,100
-
4,800
-
402,678
41,539
Unrestricted Funds		 Restricted
Funds
£
3,100
13,980
52,489
229,964
3,380
5,000
-
17,344
2,870
4,042
90
3,667
182
2,594
4,038
583
825
1,323
-
-
9,679
-
-
-
355,151		 Total
Total
2023
2022
£
£
3,464
2,161
13,980
15,647
70,310
131,582
466,509
497,252
3,797
523
8,610
7,776
17,168
15,981
78,279
42,435
5,340
2,983
5,989
4,518
185
752
3,667
6,224
4,315
5,199
4,925
3,534
4,994
1,284
917
5
11,816
5,535
7,260
8,106
1,106
631
-
5
12,588
9,612
67,250
67,250
2,100
1,800
4,800
4,020
799,369
834,814

14

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

4 STAFF COSTS

Wages and salaries
Social security costs
Pension costs
The average number of staff during the year was:		 2023
2022
£
£
411,992
428,920
22,459
34,409
32,058
33,923
466,509
497,252
2023
2022
16
17

No employee received remuneration amounting to more than £60,000 in either year.

During the year the trustees received consultancy fees of £678. Total donations received from trustees in the year was £128,667.

During the year no trustee received reimbursement of travel and subsistence expenses in their role as trustee.

Professional indemnity insurance cover has been provided for trustees and staff as a part of an overall insurance contract at a total cost of £3,773.

5 TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Cost brought forward
Additions
Disposals
Cost carried forward
Depreciation brought forward
Charge for year
Depreciation carried forward
Net book value
As at 31 March 2023
As at 31 March 2022		 Office
Equipment
£
29,176
920
-
30,096
11,151
2,941
14,092
16,004
18,025		 Computer
Equipment
Total
£
£
39,661
68,838
1,542
2,462
-
-
41,203
71,300
19,418
30,569
9,647
12,588
29,065
43,157
12,138
28,143
20,243
38,269

6 INTANGIBLE FIXED ASSETS

Cost
Amortisation brought forward
Charge for year
Amortisation carried forward
Net book value
As at 31 March 2023
As at 31 March 2022		 Lease
Premium
Total
£
£
1,345,000
1,345,000
309,350
309,350
67,250
67,250
376,600
376,600
968,400
968,400
1,035,650
1,035,650

15

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

7 INVESTMENTS

Market Value
Brought forward
Reinvested income
Investment manager's fees
Application fee
Revaluation
As at 31 March 2023
As at 31 March 2022
Cost
As at 31 March 2023
As at 31 March 2022
The investments are managed by Smith & Williamson.
The investments are held as follows:
Bonds
Alternatives
Property
UK equities
Overseas equities
Global equities
Cash
Market value as at 31 March 2023
8
DEBTORS
Trade debtors
Tax refund
Other debtors
Prepayments and accrued Income
9
CREDITORS
Trade creditors
Other creditors
Accruals
Included in Other creditors above is the following deferred income:
As at 1 April 2022
Deferred income recognised in the year
Resources deferred during the year
As at 31 March 2023		 £
1,190,868
22,961
(6,497)
(72)
(67,742)
1,139,518
1,190,868
937,775
937,775
76,402
30,098
158,956
193,575
343,716
283,710
53,061
1,139,518
2023
2022
£
£
5,523
38,309
35,831
4,482
2,614
4,679
12,744
12,020
56,712
59,490
2023
2022
£
£
28,230
14,836
27,736
19,245
6,250
4,500
62,216
38,581
£
10,000
(10,000)
17,300
17,300

Deferred income represents income received for post year-end courses.

16

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

10 ANALYSIS OF DESIGNATED FUNDS

Youth and Schools Programme
Faraday Institute Summer
Course Fund
Church Engagement: Long-term
future fund		 Fund
b/fwd
£
24,275
3,095

40,365
67,735		 Income
£
9,993
-
9,532
19,525		 Expenditure
£
-
-
41,539
41,539		 Transfer
£
-
-
27,641
27,641		 Fund
c/fwd
£
34,268
3,095
35,999
73,362

Youth and Schools Programme - This fund consists of generous donations which can be applied at The Faraday Institute’s discretion to support the work of the Youth and Schools Team.

Faraday Institute Summer Course Fund - This fund consists of donations which can be applied at the lnstitute's discretion to support The Faraday lnstitute's annual Summer Course programmes. In the first instance we are looking to support 5-7 international full-time students a year for three years with a full or partial scholarship to attend a Faraday Institute Summer Course.

Church Engagement: Long-term future fund - This fund will be used to enable The Faraday Institute’s Church Engagement work to continue into the future. It will enable the Church Engagement Director to commit to relationships, projects and events beyond the current grant-funded period. Activities are likely to include building relationships with church and denominational leaders, recommending speakers, producing, reviewing and recommending resources, a dedicated section of The Faraday Institute’s website, and social media.

17

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

11 ANALYSIS OF RESTRICTED FUNDS

Fund
b/fwd
(as restated)
£
9,500
124,388
29,167
121,177
Science of Human Flourishing
15,288
Church Engagement
24,500
International Faraday Courses
615
Helping the UK Church to Have
12,935
a Positive Relationship with Science
Science and Religion: Mapping
(11,494)
the Landscape
Exploring the Big Questions –
149,460
Under 18s
Re-embodying the soul': The
42,908
possibility and desirability of a
personal afterlife
Aesthetic Dimensions of
14
Science
Reaching the World for Christ
43,213
Through Science in Asia and
the Middle East
561,670
Ways of Knowing
The Next Twenty Years
Education Fund
Children's Literature 2		 Income
£
-
252
-
-
-
-
-
-
51,079
235,095
-
6,881
-
293,307		 Expenditure
Transfer
£
£
2,000
-
61,329
-
1,783
(27,384)
40,755
-
-
-
-
(24,500)
615
-
6,882
-
39,585
-
160,440
(21,249)
12,943
-
6,895
-
21,924
-
355,151
(73,133)
Type text here		 Fund
c/fwd
£
7,500
63,311
-
80,422
15,288
-
-
6,053
-
202,866
29,965
-
21,289
426,693

The Education Fund consists of funds set aside to provide financial support, for those engaged in teaching in the fields of science or religion, towards the cost of resources provided by the Faraday Institute.

The Next Twenty Years - A generous grant from a donor enabled us to buy a lease for the next twenty years in The Woolf Building in the grounds of Westminster College, Cambridge. We invested in both office and IT equipment as well as a website.

The Children's Literature Fund 2 - This project is seeking to enrich the communication of science and faith to young people. This is in response to research demonstrating that by the age of 11 many young people worldwide consider science and faith to be in conflict. This project will develop new media materials for children aged 2-12 that provide positive narratives about the relationship between mainstream science and religions questions. In collaboration with four well-established publishers, Lion-Hudson, SPCK, Scripture Union and Religious Education Today, 19 creative ideas for new books and apps have been selected as outputs. Ultimately this will contribute to the development of a new generation who will view the relationship between science and faith more positively.

Ways of Knowing - This project is a collaboration between the Fetzer Institute and the Faraday Institute for Science and Religion to implement the Fetzer Institute’s New Narrative Epistemology and Ontology Initiative.

18

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

11 ANALYSIS OF RESTRICTED FUNDS (continued)

The Science of Human Flourishing - This fund comprises a series of sub-projects tied together under the heading of The Science of Human Flourishing. Most of the sub-projects are now completed with remaining work focusing on disasters and the place of religious faith in the response to disasters.

Church Engagement - A new initiative to resource and encourage the UK church community to engage with contemporary science, allowing us to dedicate a member of staff to oversee and develop this aspect of The Faraday Institute’s outreach. Activities include recommending speakers, building relationships with church and denominational leaders, producing, reviewing and recommending resources, a dedicated section of The Faraday Institute’s website, and social media. This project has a particular focus on New and Independent churches in East Anglia.

International Faraday Courses - This is part of a programme to extend the lnstitute's reach into the countries of the global 10/40 window and convey a positive message on Science and Christian Faith. There is a hunger for engagement with science and faith issues, especially among younger academics. Our target audience is primarily universities and colleges as we seek to be strategic and reach opinion formers in local communities.

Helping the UK Church to Have a Positive Relationship with Science - This was an initiative to resource and encourage the UK church community to engage with contemporary science, allowing us to dedicate a member of staff to oversee and develop this aspect of The Faraday Institute’s outreach. Activities included short courses for Church Leaders, speaker training, building relationships with church and denominational leaders, recommending speakers, producing, reviewing and recommending resources, a dedicated section of The Faraday Institute’s website, and social media.

Science and Religion: Mapping the Landscape - This three-year project, in partnership with THEOS, funded by the Templeton Religion Trust, is researching the perception of ‘science’ and ‘religion’ in the UK today. This project will explore to what extent, about what and why people believe there is conflict between science and religion. The findings will enable us to produce relevant, targeted and useful resources for engaging in the science and religion dialogue.

Exploring the Big Questions – Under 18s - This expansion project from The Faraday Institute Youth and Schools Programme seeks to find the most effective ways to equip young people to explore their big science-faith questions. The fund integrates several funding sources, including grants from the AllChurches Trust, John Templeton Foundation and Kirby Laing Foundation. The project involves several constructively intersecting project strands: hands-on events for young people in schools and churches; training events; purchase and development of new equipment, teaching and training resources; production of further published materials; and effective impact analysis.

'Re-embodying the soul': The possibility and desirability of a personal afterlife - This Project is funded with a grant from the Templeton Religion Trust. This research project is an exploration of the philosophy of the afterlife. Subthemes of the project include the metaphysics of personal identity, the compatibility of physicalism and resurrection, and the desirability of an individual and embodied immortality. Research from the Project will be submitted to philosophical journals for publication.

Aesthetic Dimensions of Science - This sub-grant is to facilitate dissemination of data from the Work and Well-being in Science study, which is led by a collaborator at the Catholic University of America, in particular the data on the importance of aesthetics (wonder, beauty and awe) to scientists around the world. The Church Engagement Director will include this topic, and the data provided, in her writing, speaking, social media and events articles and The Faraday Institute will also run events on this topic.

Reaching the World for Christ Through Science in Asia and the Middle East - To organise short “Science and Faith” Faraday courses in Asia and the Middle East in order to equip and empower local Christians to break down barriers between science and faith in academic institutions.”

The transfers from restricted funds to unrestricted funds are overhead contributions from these funds.

19

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

12 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Intangible fixed assets
Investments
Net assets/(liabilities)
Total net assets		 Unrestricted
Funds
General Fund
£
28,143
968,400
1,139,518
702,724
2,838,784		 Restricted
Funds
£
-
-
-
426,693
426,693		 Designated
Funds
£
-
-
-
73,362
73,362		 Total Funds
2023
£
28,143
968,400
1,139,518
1,202,778
3,338,839

13 RELATED PARTY DISCLOSURES

See Note 4.

14 PRIOR YEAR ADJUSTMENT

The brought forward reserves have been restated to reflect the full salary costs relevant to each fund in accordance with budgeted amounts. The net impact of this change is that the Restricted fund balance brought forward decreased by £100,889 with a corresponding increase in Unrestricted funds.

20

THE FARADAY INSTITUTE FOR SCIENCE AND RELIGION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

15 COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Income from:
Donations and legacies
Charitable activity
Advancement of Education
Other trading activities
Sale of materials
Investment income
Interest receivable
Dividend income
Total Income
Expenditure on:
Raising funds
Charitable activity
Advancement of Education
Other trading activities
Purchase of materials
Total Expenditure
Transfer between funds
Gains on investment assets
Net income/(Expenditure) and net movement in
funds for the year		 Unrestricted
Designated
Restricted
Total
Funds
Funds
Funds
Funds
2022
£
£
£
£
163,352
125
-
163,477
138,486
11,762
410,410
560,657
4,636
-
-
4,636
3,423
-
-
3,423
19,400
-
-
19,400
329,297
11,887
410,410
751,593
6,928
-
-
6,928
316,511
55
518,248
834,814
4,565
-
-
4,565
328,003
55
518,248
846,306
-
-
-
-
-
39,491
-
-
39,491
40,784
11,832
(107,838)
(55,222)

21