COMPANY REGISTRATION NUMBER: 09011968 CHARITY REGISTRATION NUMBER.. 1157004 Ridley Hall, Cambridge Company Limited by Guarantee Financial Statements For the year ended 31 July 2023
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Financial Statements Year èndod 31 July 2023 Pages Trustees, annual report lincorporaling the diTectorfs reporti 1to12 In¢Jependent auditofs report to the member$ 131017 Statement of financial activities (including income and expenditure account) 18 Statement of financial p0511ion 19 Stslement of cash flows 20 Notes lo the financial slatemenls 211038
Ridley Hall, Cambridge Company Llmltod by Guarnntfjo Trustees. Annual Report {Incorporating the Directorfs Report) Year èndod 31 July 2023 The trustees, who are also the directors for the purposes of company law, present their report and the rinancial statements ofthe charity for the year ended 31 July 2023. R•for¢n¢• and •dmlnl$trnlv• d•talls Règistèrad charity nam• Ridley Hall, Cambridge Charity registration number 1157004 Company rogl$tratlon numb•r 09011968 Principal office and r8gister•d Ridley Hall Road office Cambridge CB3 9HG The trust• Mr Mark Spelman IChaim)anl The Venerable Hugh M¢Curdy (Resigned 23 November 20221 The Rt Revd Dr Jo Bailey Wells (Resigned 22 November 20231 Very Revd John Irwne Mrs Sibella Laing Dr Kevin John Holmes Mr Simon McGuire Revd Rebecca Dyball Ivice Chairman Canon Andrew R Presland Rt Revd Dr Pete WThlcox Revd Michael David Bigg Mrs Kina Robertshaw Professor Simeon Zahl Mf Andrew West Miss Susan Pope Rt Revd Debbie Sellin IRe$igned 22 November 20231 (Appointed 20 March 20231 (Appointed 22 December 20221 (Appointed 9 January 20231 Prfncipal Revd Dr Mithael Volland Company Sg¢r•tary Mr Guoliang Zhang Auditor Streets Audrt LLP Chartered accountsnts & slatulory auditor 3 Wellbrook Court Girton Cambridge CB3 ONA Bankers Barclays Bank P St Andrews Street Cambridge CB2 3AA
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Trustees. Annual Report {Incorporating the Directorfs Report) (tonlinvedj Year èndod 31 July 2023 StructUrn gov8manc8 and managom•nt Constitution Ridley Hall, Cambridge I'lhe College" or"Ridley Hall") is govemed by the Memorandum and Arbcles of Association. The Arb'cles of Associabon provide for the govemance and management ot the College to be vested in a Trustee Board and its day-to-day control with the Principal. The Board of Trustees is responsible for.. Determining and approving Ihe vision and strategic direclion for the College Monf(oring the quality of the edu¢ion, training. and spintual fonnabon the College provides for ils students Approving the colge,$ budget and related 8ccounkn"ng. audit, investment and other financial policies Delegating management of the College to the Principal and the Leadership Team, wf(hin the framework of vision, strategy and financial policies which the Board will from time to time approve Appointing the Principal in accordance with appropriate terms and condibons of remuneration and employment which the Board wll set from lime lo time On the recommendation of the Prinopal. appointing. and delemining the paCUlar roles ol, members ol the Leadership Team Ensuring that appropriate human resources and employment policies are established and implemented within the College, in accordance best practice Ensuring that appropriate best practice safeguarding policies a established and implemented within the College and reviewed annually The Trustee Board meets al least 3 times a year during lemi lime. Additional meetings may be held when required. New Trustees In appointing new tru$tee$. the Twstee Board seek$ to ensure thal a range of experience and expertise is represented. New trustees are expected to engage in the life of the College and to be fully conversant with ils aims and objective5. Rlsk Management The Trustees monitor risk through a risk register lch is revised by the Finance Committee and discussed by the Board at least once a year. The exceptional issues created by changes to the Church of England ordination recruitment process and Ihe threat of an ongoing reduction in ordinand numbers do present a risk lo the financial sustainability of the College. Ministry Division have made Some constructive steps and Finance Committee have also worked to develop a range of miligalion opb'ons- these are under consideration by the board.
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Trustees. Annual Report {Incorporating the Directorfs Report) (tonlinvedj Year èndod 31 July 2023 Obj8ctiv8s and activiti8s Objectives The objects of the College are to provide Iheobgi¢al instru¢b"on consislenl with the principles of the Church of En9land to candidates for ordination and. subject thereto, to provide theological education with a preference for individuals who are undertaking a course of study in theology or who have been ordained. In carrying out ils objects, the College may provide acMMOdatIOn for students. Publ1¢ bongfit The Trustees have referred to the Charity Commission's general guidance on public benefit and have considered their publ benefit obligations under charity18w and beIve that they are in compliance with those obligations. Purposo and Direction Ridley Hall 1$ an inlemalional. nab'onll and regional resource for theologically rigorous training and fomalion for lay and ordained ministry wlh a¢tivrties radiating from our historic sile In Cambridge. The College was founded in 188110 train clergy lor the Church ol England and for Anglican ministry across the world. We continue to major on training Anglican ministers, but today have more students and more diverse activities and new partnerships. From our location in Cambridge, the very heart of academic excellence, we partner with a unique range ofchristian and educabonal or9anisations. We are a founder member trf the Cambndge Theokbgical Federation I'CTF"). which ¢elebr3led ils 50th anniversary In 2022., we have the flexibility lo offer undergraduale and postgraduate pathways with Cambridge University and Durham University. In Seplember 2018 an additional teaching centre was established in London in partnership with St. Andrews, Enfield. As a result of the pandemic delivery of teaching for the London Centre moved entsrely online. In autumn 2020 the College look the strategic decision to make the move lo online delNery ofleaching forthe London Centre pemianenl, establishing what is now known as Ridley Online. The rnission of the College. lch is to train leaders for the churth, is supported by a clear vision, which emerged under the direction ol the Principal and leadetship team., We believe that God Is calling us lo become a beacon of Christian learning and fom)alion." to invest in our beautiful srte, buildings and staff in order to provide a wam. safe and mfortable home for our diverse and growing community of lay and ordained students.. and to ensure that Ridley Hall is able to respond to the opportunities of the future. This vision continues to be fulfilled in 2022-23 through the support and encouragemenl of key staff member5. detailed attention lo the cumculum. ongoing improvements lo college building5 and the growth of income streams from room rentsl, catering and hosbng extemal events.
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Trustees. Annual Report {Incorporating the Directorfs Report) (tonlinvedj Year èndod 31 July 2023 Obj8ctiv8s and activiti8S Icon*inued) All our activities reflect our distinctive Christian eth05. Training fLrture leaders for ordained ministry In the church is still our core activity. Woven into this is the Newbigin Centre, which promotes research and reflection on mission and Christian engagement with Westem Culture. The College's international refreshment programme provides opportunities for sabbaticals, study leave and postgraduate awards for church leaders and visiting scholars. seW-financed or through bursary-funding. Having had to pause during the pandemic. the College resumed this important aspect of our shared life and has conb.nued lo benefit from guests during the 2022-23 academi¢ year. A senior pnesl from the Episcopal Church in the United States, stayed with us during Ihe durabon of the Easter temi and wmte, 'Th& Community at RleY is rts most important asset. 80th faculty and students are deeply committed to their respectiv& missions withAn Ihe Church communrfy and tit shows. The rhythms of community lrfe are vilal lo mainlaining a gUlar life olprnyer and fellowship in rts midst of demanding schedules. And y81, the midst of all this, many members found time to exlend themselves lo me as a guest in th M$1 bul lora lime... I came lo Rleyall. in part, lo move mysembeyondmy own comfort zone. Ridley did this lor m& and gave me a renewed hope forthe Church- thal the Holy Spinl is moving in new 8nd varied ways among Gods p8opIe.' Ridley Hall continues to respond to the growng demand for robust training and preparation for lay ministry through our Department for Lay Training and Formats"on. In 2022-23 the department had 28 men and women across three year-groups studying for the Common Award5 8A in Theology. Ministry and Mission. In addilK•n, 15 lay ministry stvdenls were enrolled on Common Award modules laughl through our Ridley Online Ipreviously Ridley London) teaching centfe, and 9 students were studying for various awards under the heading eXible studies,. Achl•¥em•nts and p•rforman Overvlew In 2022-23 Ridley Hall had 48 ordinands engaged in lull bme residential training for ordained ministry in the Church of England. These ordinands study for a variety of undergraduate and poslgraduale awards with Cambridge University and Durham Unwersity. The Common Awards pathways validated by Durham University form part ol a national provision fortraining future ministers forthe Church of England and other partner churches. Alongside our ordinands, in 2022-23 there were 28 students enrolled on our Lay Ministry Pathway. mentioned above and 9 independent students studying for a range of awards. Ridley'5 London leaching centre continued its strong start and conbnued lo be fruitful thi5 academic year. We had 15 students enrolled. some of whom We London diocese apprentices undertaking Common Awards. The majority of Ridley Hall's academic pathways continue to be delivered in partnership with other member inslrtutions of the Cambridge Theological Federabon. The Cambridge Theological Federation has 51udenl visa 5pon50r status enabling Ridley Hall to recruit international students requiring a sludenl visa for ((s Common Awards pathways. We currently have two RLM students who have made use of this facility.
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Trustees. Annual Report {Incorporating the Directorfs Report) (tonlinvedj Year èndod 31 July 2023 Achi8v•monts and rfonanca (conlinuedj During the 2022-23 academic year, we conb.nued lo focus on sludenl recruilmenl for 2023-24. There continues to be serious concems across the TEI sector about the new hvo-stage ordinand discernment process recently rolled out by the national church. Followng meetings with TEI Principals and Ministry Council, a funding package was agreed that provided a proportion of the acadernic fee income for the difference beeen our current number of ordinand5 and the totsl number of ordinands at Ridley during the 2022-23 academic year. It was helplul to be provided wlh addrtional financial security, given ltswer numbers coming forward for training. However. we conb.nue lo nob"¢e a marked difference in ordinand recruitment wth very small numbers coming for interview early in the year and potential ordinands seeking lo book bespoke interviews late in the year and even after the academic year ha5 finished. We have recruited 12 ordinands for entry in 2023-24. this continues lo be far lower than has been expected in previous years. where we would expect approximately 25 new ordinands per year, and we share serious concems vAlh other residential TE1$ about the impacl of a variety of factors on the discernment of new vocations to ordained ministy, including the new discemment pro¢e$ses, Ihe cost of living crisis, and uncertainty around LLF. The Director ef the Newbigin Cenlre. the Rev Dr Paul Weston continues to supeNise SearCh students for MPhillPhD degrees. After 20 years of failhfvl service as a member of staff al Ridley Hall. Dr Weston retired in August 2023. Part of Ridley's commitment lo becoming a beacon of Chrisb"an leaming and formation is building and maintaining an exceptional staff team. In September 2022. the Rev Dr Olga Fabrikanl-Burke moved into accommodation on sile al Ridley Hall and look up the post of Tutor in Old Teslamenl and Tutor in Admission$ lone posll. Olga has made a very solid $lart in her lea¢hing and lulorial responsibilities and has brought energy and fresh ideas lo the area of recruitment and admi55ion5. During the Michaelmas Term, Dr Fabrikanl-Burke was commissioned lo research Ridley's approach lo recruilmenl and admissions. She drafted an excellent report which was shared with stsff, who were invited lo comment. Recommendations were considered and a plan was developed lor a new Recruilmenl and Admissions Hub, which was e$tablished in the Ea$ler term and vthich will oversee all related plannin9 and processes. An important part of fomalion of those training for lay and ordained ministries is the opportunity lo meet and hear from dislinguishe¢J visitors lo the College. In 2022-23. among others. we welcomed Paul Harcourt, leader of the New ¥Nne neOrk and Revd Alexandra Lilley, vicar of St George's Tufnell Park. Author, Or Andrew Root stayed with us for a week in November. As well as preaching at College Communion and delivering a svperb Spirituality Lecture. he delivered a welkattended public lecture tilled. Ministry In$e the Immanent Frnme." Speaking of G1 a Secular Age. The Revd Chns Lee. vicar of Sl Saviour's. Wendell Park. wth 150.000 Instagram followers from around the world gave a lecture on 'Social Media and Mission.. hjionore Smith from the Intemational Justice Mission, spoke on slavery and ants".Ir8fficking and Rev Debbie Ford, presented on the Lyn's House Community. Tim Farron. Liberal Democrat MP deleI our Moule Day Lecture in June 2023. His tille was based on his book. A Mucky Business.. Why Chnstians Should 981 Involved in Politics Tim's address was inspiring and generated a great deal of positive feedback. It was wonderfijl to have former students, staff and 5UPPOrters of the college on site for this importanl annual event. Guests were treated lo an excellent lunch and had the opportunrty to hear about the launch of a new appeal to repair and refresh the College chapel. Having concluded a fruittul knyear term as President of the Cambridge Theological Federation in July 2022, the Principal of Ridley Hall was elected by fellow-PrincipaL8 Chair of the Theological Education Instrtulions Steering Group. In this capacty Dr VollarKI also look up a seat on the Ministy Council of the Church of England. where he has responsibilty for repsenting theological college$ and courses.
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Trustees. Annual Report {Incorporating the Directorfs Report) (tonlinvedj Year èndod 31 July 2023 Achi8v•monts and rforManCe (conlinuedj Strategic Developments In summer 2021 Trustees approved the direction of travel of the 2021-26 strategic plan and queSted that the Principal and staff team move to action the priorities. The leadership and staff team have continued lo focus on making progress on the delivery of the goals set out in the plan, which commrtted us lo striving forexcellen¢e in key areas of College life. and exploring ptsssibilrties forfvlure endeavourn. 5 Priorltlo$ for 2022-26 1. Strive for excellen in our provision of degree•level residenb'al ordinand training 2. Strive for excellence in our provision of degree-level. lay ministry theological training and formation 3. Become a leading provider of online th8obgi¢al conteKiual training 4. Continue lo focus on re¢ruiling and relaining an ex¢epb'onal teaching. tutorial and $upp¢)rt $laff team 5. Continue our lively programme of building maintenance and property improvement Having completed another academic year. stsff al Ridley Hall have been WOTk1ng wrth colleagues across the Cambridge Theological Federation lo plan for a more sustsinable and streamlined academic offering, given the current reduction in overall student numbers. Following the creation of Ridley's Academic Hub last year. we have now e5tsblished an Admissions Hub to oversee the recrurtmenl and admissions of our students. One priorty lor the Coming year is lo ensure these two groups work well together so sludenl applications and course admissions happen as efficiently as possible. Ridley increased access lo its postgraduate offering in 2022-23 by delivering MA module5 in Mini-8loek- Weeks, taught during the ordinand term. Mini-Block teaching enable5 Ridley to offer part-time posl9raduale study lo distsnce students. lay and ordained. vtho leam alongside resident ordinands. The modules are taught by both lulklime Ridley faculty and associate lulors. For each module. teaching is concentrated in Mini-Blocks. which run ftom Monday aftemoon until Wednesday lunchtime. The aim is to provide a complete Mini-81ock curriculum, induding modules on specialist ministry topics, that enables students lo ¢omplele a PG Certificate in one year. a PG Diploma In two years, and an MA over three years. lIe we are currenlly offering Mini-Blocks to three students in our pilot year, we see this as a signffi¢ant growth opportunty and are recruth'ng to the full Mini-Block teaching programme for the 202>24 academic year. The block-teaching mode of delivery for lay minislry (RLMI Iraining has now completed its seventh successful year. The Vice Principal and Dean of Lay IAinislry. the Rev Fiona Green, ¢ompleled her fourth year of leadership of RLM. The Church of England's Resourcing Mini$lerial Formation proposals envisage increased emphasis on lay training throughout the Church of England and so RLM continues to be a major strategic focus for Ridley Hall. Our engagement in a range of lay ministries including youth, children's, pioneer, chaplaincy and sports ministry is providing a solid platform for responding creatively lo these new training needs. Through the work of our Director of Innovation, Robin Barden, opportunities to develop the reach and profile of Ridley Hall Lay Ministry acts"vits"es in 2022-23 have continued lo be fruitful. There has been broader and Increasing student profile. and the continued development of valuable relationships wth dioceses, partilarlY London, lo train lay ministers.
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Trustees. Annual Report {Incorporating the Directorfs Report) (tonlinvedj Year èndod 31 July 2023 Achi8v•monts and rforManCe (conlinuedj During 2022-23 Robin conts.nued lo develop the Ridley Award Ihtt s".Ilridle award5.online , working with the Diocese of Ely to develop an Award in Schools Chaplaincy to complement the exisb'ng Award in Sports Ministy. The Award launched publty in May 2021 and has continued to develop in 2022-23. Dona Mccullagh continued to drive up the College's profile through strategic use of social media. Making use of several popular platfomis. Dona has ensured th Ridley has a consistent and carefully managed social media presence. This has contsnued lo maintsin an InCaSed sense that the College is a lively and engaged place where things are happening. Ridley were able to offer snIficant staffing resource lo assist the central team of the Cambridge Theological Federabon ICTFI dunng 2022-23. Our Devebpmenl Director. Andy Chamberlain. was seconded for days a week to the CTF central team as Head of Central Services. Andy served with distinction and Ridley has benefitted hugely from his careful attention to significant compliance responsibilities alongside many other important matters. Andy succe5sbJlty led a proces5 of recruitment for a permanent Head of Central Services. who look up the post In August 2023. An addition81 staff member, Chadotte Bentley. was seconded lull-ts'me from Ridley lo the CTF during 2022-23 and this secondmenl is due to conts'nue unlil August 2024. Chadotte did an excellent job of ensuring that academic administration relab'ng to the Durham Common Awards was delivered on time and to a hi9h standard. Studont Achlovemonts The wide range of awards on offer at Ridley allows us to match individual students wth a surtable course. The excellent results below indicate a high degree of success in thi$. Cambrldgo Unlverslty awards. 2022-23 In 2022-23 one Ridley Hall ordinand was enrolled in the Tripos. He completed the degree this year and is planning on continuing his studies through undertaking a Cambridge MPhil in 2023-24. Three of our students completed the MPhil this year. One intermitted her studies due to maternity leave and will return lo Complete the degree before June 2024. The other MPhil ¢andidales both passed. each achieving a dislinclion. These are tremendous $uts for students wlh significant fomalional commitments alongside their studies, induding the demands of finding a curacy. This year, we had fv40 ordinands enrold in the BTh,' one finalisl and one first year student. The finalist completed the degree wlh Lor Second Class Honours. Our first year BTh candidate has had some long extensions approve<1 for her submitted work and so we wll know her grades in due Course. We are very pleased to report that one fomier Ridley student has recently defended her PhD thesis SUesSfullY in the Faculty of Divinity- Another fomier student is preparing lo submit hi$ PhD thesis while a third former sludenl continues to Vrk on his PhD part-lime alongside his curacy duties. As in previous year5, we are grateful lo the Henry Smth Charrty and several Cambridge Colleges, notably Selwyn, Trinity. Trinity Hall. and C¢ypus Chrisb", for their Continuing financial support of our ordinands who are reading for Cambridge degrees.
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Trustees. Annual Report {Incorporating the Directorfs Report) (tonlinvedj Year èndod 31 July 2023 Achi8v•monts and rforManCe (conlinuedj Common Awards, 2022-23 Post raduale Twenty-five Ridley Students pursued postgraduate study within Common Awards, taking either an MA, Post-Graduate Diploma, or Post-Graduate Certthcate. Fifteen students completed poslgraduale qualrfi¢alions this year". eleven finished an MA Iwilh three of these retuming students writs'ng dissertations only), three completed Post-Graduate Diplomas. and 1 a Po$t-Graduale certifile. Ridley welcomed eight new postgrailue sludenls in 2022-23. Tr•Alh three enlering our newly launched part-lime distance MA programme, taught through block-teaching. A fijrther three new completed Post-Graduate Diploma with the remaining entering the first year of the MA, wth the airn of completing next Summer. Under raduale Ridley Hall delwers a suite of undergraduate Common Awards.. the Foundation Award, Certificate of Higher Edu¢alion, Diploma of Higher Edu¢atson. BA IHonsl and Graduate Diploma. in Theology, Ministry and Mission. Flexible course delivery. including block-week leaching, means that programmes are accessible to a diverse student body. In 2022-23 eighty students were enrolled for an accredited undergraduate Common Award.. twenty five ordinands. twenty eight Lay Ministry sludenls. thirteen llexible Study students and fourteen Ridley Online students. In addition, four online students Completed a Common Awards taster module. which offers progression lo an accredited undergraduate course. Twenty six finalists wll be pSented for undergraduate Common Awards." fourteen for the BA (Honsl, five for the Diploma ol Higher Educab"on. seven for the Ce"fiCate of Higher Education. Dèpartmont of Lay Ministry Training and Forniation IRLMI RLM offer$ degree level training within Comm¢)n Awards as a key part of Ridley Hall's offer lo the whole Church. RLM has developed a contexiual approach that works in partnership wlh dioceses, faith organisations and individual churches to Irain the laity for a variety of foles including youth ministry. children and family's ministry. and sports ministy- RLM delivers the degree in six block teaching weeks overthe year at Riilley Hall, shere students undertake academic study wlhin an intentional worshiping communrty. Students apply their leaming within substantial placements and are supported in their reflections Ihrough group tutorials. The RLM team has continued to develop its training offer during the academic year 2022123. The number of sports student5 has increased year-on-year since the launch of the sports stream In 2019, supported by the offer of student bursarie5, through the gener05Tty of an extemal donor. The School Chaplaincy stream continues to be developed by our Tutor for Schools chaplaincy, and a non-accredited Ridley Award has been13unched in the local diocese, to enrage applicants onto the RLM degree pathway to be launched in 2023.
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Trustees. Annual Report {Incorporating the Directorfs Report) (tonlinvedj Year èndod 31 July 2023 Achiavaments and rforManCe (conlinuedj Ridley Hall ha5 also just been awarded a grant from the National Church to pilot a new Youth and Children & Family Ministry training scheme in the academic year 2023124 drawng on RLM'S experb'se. In 2022-23 RLM had 28 students enrolled over the three years, placed wth Churches and dioceses across the East. South, Wesl and the Midlands of the UK. Studont Pla¢•ments Ridley ordinands usually undertake a four-week summer pla¢emenl shadowing clergy and experiencing practical ministry. Some students remain in Cambridge and nearby villages whilst others venture further afield in the UK and abroad, selecting contexis which range from deeply rural to city centre. In recent years destinations In the UK have included. among others, Southwell Minster and a Fresh Expression in Oxford a5 well a5 parish churches in Hordle and Tiptoe. Bury St Edmunds. and London. Students who opt lo experience Anglican contexts outside the UK have visited contexts in, among others. Toronto Icanadal, Accra (Ghanal and Cape Town (South Afr31. They have returned enriched by the experience lo share their stories and their quests.ons wrth their fellow students as they conb'nue to prepare for ordained ministry. Flnanclal r•vlow Income Total income for the year amounted to £1,708.979 1£1,582.617 in 2021r221. This comprisèd of £1.696,735 unreslncted income and £12.244 iestncled Income. Income from the College's charitable activities (Note 6) was £974,018 (£1,113,289 in 20211221. The main source of income for the College is sludenl tuition fees and maintenance charges. The significant decrease on sludenl income was mainly resulting from the reduction on ordinand student numbers following the Church of England changes to the ordinand discernment process. A support grant of £96,927 was provided by the Church of England to mrfigate the impact, this has been included in the donations and grants income (Note 51. Donations and grants income increased from £103,746 in 2021122 to £169,085 in 2022123 (Note 51. This includes the Church of England support grant of £96.927 as mentioned above. Income from other trading activitie5 (Note 71 am¢>Jnted lo È564,6361£365.358 in 20211221, ¢onsi5ting of conference incorne of £143,2291£78,444 in 20211221 and other income of £421,407 (£286,914 in 20211221. The increase in conference income was resulting from the Studio language school retuming lo ils six weeks compared to four weeks in 21122. and the higher rates charged in 22123. The other income mainly consisted of rental and catering income. Rental income has become a main Source of other income since A Staircase development completed in 2021, in addits'on there was extra rental income due to increased capacity resulting from the lower student numbers in 22123. The increased catering income was also related lo the Studio language school. Included in the other income, £56,426 related to the two staff seconded to the Cambridge Theological Federation during 22123. Interest received (Note 81 amounted to £1,240 {£224 in 20211221.
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Trustees. Annual Report {Incorporating the Directorfs Report) (tonlinvedj Year èndod 31 July 2023 Financial raviaw Icontinuedj Expenditure Total expenditure amounted lo £1.980.5541£1.913.915 in 20211221. The increases were mainly caused by the high inflation in PacUlar on food and energy costs. The cost of raising donations and legacies (Note 9) was £43,233 {£45,718 in 20211221. The expenditure on ¢hanlable activitie5 (Notes 10 and 111 relates to the operation of the College, the provision of staff and student housing, and support costs. This expendrture amounted lo £1,931,859 1£1.868,197 In 20211221. Overall stsff costs (Note 161 We £1.140.100 1£1.108.714 in 20211221. Average number of full-time equivalent employees remained the same. whereas the average staff headcount went up by . Auditors, remuneratson 15 £8,520 for the year1É7.276 in 20211221. Depreciation on tangible fixed assets (Note 141 amounted to £180.471 (£180,157 in 202112213nd fixed asset additions amounted lo £3 1,023 for the year1£36.569 in 20211221. Net movomont In Funds The actIv.e$ for the year show a net movement of fvnds of a def11 of £268,575 Ideficil of £321,298 in 20211221. Balanc• Shoot Total charity funds al 31 July 2023 were £4.392.940 1£4.661.515 on 31 July 20221. This comprises restricted funds of £81.034 (£105,262 ¢)n 31 Juty 20221, and unrestrided fvnds of £4,311,906 <£4,556,253 on 31 July 20221. Unrestricted funds are also detailed in Note 26. As a resuh of adopting FRS 102, the balance sheet now includes a pensions provision ol £nil1£11.000 al 31 July 20221. see Note 25. This provision has been reflected separ*ely as a pensions reserve in Note 26. The College ha$ no other SignffinI endowment or investments. There are no borrowng facilities in place at this time. Subsequent Events The College a in the process of disposing one of their Ireehold properties {Note 311. Resorves Pollcy The Tru51ees have agreed a policy of holding six months budgeted operating costs In the General Reserve, which would equate to approximately £990k. Al 31 July 2023. the UnStricted cash funds, excluding the premises fund and pension reserve. amounted to negab've £43.317 a decrease on a surplus of £61,371 at 31 Juty 2022. Addressing the shortfall continues to be a focus for Finance Committee and the Leadership Team- not only by reviewing income streams and ways of cutting cos15 bul also through a release of value from e¥isb"ng assets. This is under consideration by the board. In¥tment Powers The Trustee5 have the power to make investments at the discretion of the Trustee Board of up to tsvo third5 of monies held. 10
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Trustees. Annual Report {Incorporating the Directorfs Report) (tonlinvedj Year èndod 31 July 2023 Plans for future pariods Followng the introduction of four subcommittees wthin the Trustees, Committee, we aim to achieve significant support frorll each subcommrttee. each of which has spe¢ifi¢ aims. EduGgtion and Fomiats'on - to review all CuMluM and $tsffing in a revised Federation and build stronger relationships with key stakeholders., Finance - lo achieve operats.onal break even or better supported by robust financial systems, processes and controls., Fund Raising and Development- lo develop fvnd raising plans, priorth'salion and evaluation using an updated contact daiabase., Nominations- to review ¥u¢ce$$ion planning and to rttrurt a full complement of Trustees. Trustee$. responsibilities ststwngnt The Iru$lee$. who are also directors for the purposes of CoMnY law, are responsible for preparing the Iruslees, report and the financial slalemenls in ac¢ordance with applicable law and United Kingdom Accounting Slandar¢Js (United Kingdom Generally Accepted Accounting Practice). Company law requires the charty trustees to prepare financial statements for each year which give true and fair view of the stale of affairs ol the charitable company and the incoming resources and application of resources, induding the income and expenditure. for that period. In preparing these financial stslements. the trustees a required to.. select suitable acwunting policies and then apply them consistenuy.. observe the methods and principles in the applicable Charrties SORP. make judgments and accountiThJ estimates that a 0$Onable and prudent., prepare the financial statements on the going concem basis UnSS il is inappropriate lo psurne that the charty wll continue in business. The Iruslees are responsible for keepng adequate accounting records that are sUfficnI lo show and explain the charity's transactions and disclose wth reasonable a¢¢ura¢y at any b'me the financial posrtion of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are a150 responsible for safeguarding the assets of the charity and hence for taking reasonable steps lor the prevention and detection of traud and other Irregularrties. Audltor Each of the persons who is a trustee at the dale of approval ol this report confirm5 that.. so far as they are aware, there is no relevant audit information of Nthich the charity's auditor is unaware", and they have taken all steps that they ought to have tsken as a trustee lo make themselves aware of any relevant audit infr)rmats'on and to estsblish that the charty's auditor is aware of that information. 11
Ridley Hall. Cambridge Company LlmFied by Guarant•• Tru8t8•8' Annual Rèport IlnworatiThJ the Dlrnctots R•portl (c Year ended 31 July 2023 Sm•ll ¢rynpw pvovisio This rep)rt has been prepar&1 in Tth the proonS W[41¢ to C(panIeS entiued to t mall tompanE5 exernoion. Thp trustees. annual rem was a0j on .. Iru51ees ty.. Mr Mark Spdrnan Chwrrnan of the TrLLrytees Dr Kevin Hohnes Chaimian of Ihe Finan Committee 12
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Independent Auditorfs Report to the Members of Ridley Hall. Cambridge Year èndod 31 July 2023 Opinion We have audited the financial statements of Ridley Hall, Cambridge (the 'charity'l for the year ended 31 July 2023 which comprise the statement of financial activrties (including Income and expenditure ac¢ountl. stslement ol financial position. statement of cash flows and the related notes, in¢luding a summary of significant accounting policies. The financial reporting framework that has been applied in their preparab'on is applicable law and Unrted Kingdom Accounting Standards, including FRS 102 The Financial Reportsng Standard applicable in the UK and Republic of Ireland Iuniled Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the tharity's affairs as al 31 Juty 2023 and of its incoming re50urce5 and applicabon of resources. including its income and expenditure, for the year then ended., have been propedy prepare(J in accrKdance with Uniled ngdOM Generally Accepted Accounting Practice., have been prepared in accordance wilh the requiremenls of the Companies Act 2006. Basls for oplnlon We conducted our audit in accordance InlemalK•nal Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those slandafds a fvrther described in the auditor's responsibilities for the audit of the financial ststements section of our report. We are independent of the charity in accordance vh the ethical requirements that are revant to our audit of the financial slalemenls in the UK. in¢luding the FRC'S Ethical Standard. and we have fvlfilled our other ethical responsibilities in accordance these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Concluslons rèlatlng to golng concern In auditing the financial statements, we have conduded that the trustees. use of the going con¢em basis of accounting in the preparation of the financial slalemenls is appropnate. Based on the work we have perfornied, y have not identjfied any material un¢ertaints'e$ relating lo events or conditions that. individualty or collectively. may cast signrficant doubt on the charity's ability to continue as a going concern for a period of al least fv1ve month5 from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the trustees respect to going concern are described in the relevant sections of this report. 13
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Independent Auditorfs Report to the Members of Ridley Hall. Cambridge (tontirtued) Year èndod 31 July 2023 Othar inforniation The other information comprises the infomiation included in the annual report, other than the financial slaternenls and our auditor's report Ihereon. The Iruslees are responsible for the other Informats"on. Our opinion on the financial slalemenls does not Cover the other infomation and, except to the extent otherwise explicitly stated in our report, we do not express any fomi of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other inlomiation and, in doing so, consider whether the other informali¢)n is malenally Inconsistent wth the financial statements or our knOedge obtsined in the audit or othernise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to deterrnine whether there is a material misstatement in the financial statements or a material misslalement ofthe other information. If, based on the work we have performed, we conclude that there is a material misstslemenl ol this other infomialion. we are required lo report that fact. We have nothing lo report in this regard. Oplnlons on othor mattors prnscribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Iruslees. feport for the financial year for %thich the financial statements are prepared is consistent wth the financial ststement$,' and the trustees. report has been prepared in accordance with aPpIable legal requirements. Mattern on whlch arn requlr•d to roport by oxceptjon In the light of the knowledge and understanding of the charity and its environment obtsined in the course of the audit, we have not identified material mis$lalemenls in Ihe Iru$lees' report. We have nothing lo report in respect of the foll0vng matters in relation to which the Companies Act 2006 requires us to report to you rf, in our opinion.. adequate accounting records have not been kept. or returns adequate for our audit have not been received from branches not visrted by us,. or the financial stslemenls are not in agreement wth the acccwnling recortls and retumg", or certain disclosures of trustees, MUneration specffied by law are not made,. or we have not received all the infomiati¢)n and explanations we requi for our audit,. or the trustees were not entrtled to prepare the finanoal statements in aOrdanCe wth the small companies regime and take advantage of Ihe small companies, exemptions in preparing the directors, report and from the requirement lo prepare a stralegic report. 14
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Independent Auditorfs Report to the Members of Ridley Hall. Cambridge (tontirtued) Year èndod 31 July 2023 Responsibilities of trustoos As explained more fulty In the trustees. re5ponsibilrties statement, the trustees (who are also the directors for the purposes of company lawl are responsible forthe preparation ofthe financial statements and for being satisfied that they give a true and fair view. and for such intemal control a$ the trustees detemiine is necessary to enable the preparation of financial statements that ale free from material misstatement, whether due to fraud or error. In preparing the financial ststements, the trustees are responsible for assessing the charity's ability to continue as a going concern. disclosing. as applicable. matters related to going con¢ern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic aliernative bLrt lo do so. Audltorfj rè¥pOn$lbllles for th• audlt of the tlnan¢lal statsmonts Our objectives are to obtain reasonable assurance about vknether the financial ststements 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 a¢¢ordan¢e with ISAS IUKI will aNYays detect 3 material misstslement when Il exists. Misslalemenls can arise from fraud or error and are considered material if. individually or in the aggregate, they ¢ould reasonably be expected to influence the enOmiC de¢isions of users taken on the basis of these financial statements. Irregularities, including fraud, are instsnces of non-¢omplian¢e wlh laws and regulalitsns. We design procedures in line with our responsibilities. outlined above. lo delecl material misstslemenls in respect of irregularities, including fraud. The extent lo which our pr¢)cedures are capable of detecting irregularities, including fraud 1$ detailed below.. Our approach to identifying and assessing the risks of material misstatement in respèct of irregularf(ies, including fraud and non-compliance th laws and gUlatiOns, was as follows.. the engagement partner ensured Ihal the engagemenl team collectively had the appropriate competence, capabilities and skills lo identify or recognise nonwcompliance with applicable laws and regulations., we identthed the laws and regulations applicable to the charity through discussions with Irusleeg and other management, and from our commercial kno¥edge and experience of the charity and sector in which rt operale$', we focused on specrfic laws and regulab'ons which we conSered may have a direct material effect on the financial statements or the operations of the charity. including the Companies A¢t 2006. Charities A¢t 2011. tsxab'on legislabon. dala protection. anti-bribery. employment. environmentsl and health and safety legislats'on., we assesse(l the extent of corrbpliance wrth the laws and regulations identified above through making enquiries of management and inspecting gaI corresptsndence," and 15
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Independent Auditorfs Report to the Members of Ridley Hall. Cambridge (tontirtued) Year èndod 31 July 2023 identified laws and regulations were communicaled within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceplibilrty of the charity's financial statements to material misstslemenl, including obtaining an understsnding of how fraud might Ixcur. by- making enquiries of management as to vthere they considered there was susceptibility to fraud, their knowledge of actual. suspected and alleged fraud,. and considering the internal controls in place lo mib.gale risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we.. perfomed analytical procedures lo identify any unusual or unexpected relationships., tested joumal entries to idenbfy unusual transactions,. assessed whether judgements and assumptions made in detennining the accounting estirnates sel out in Note 3 were Indicative of potential bias., and investigated the rationale behind significant or unusual transactions. In response to the risk of irregular.e5 and nonthcompliance VAth laws and regulations, we designed PredureS which included, but were not limited to.. agreeing financial slalemenl disclosures to underfying suppoiting documentation., reading the minutes ol meetings of those charged govemance., enquiring of management as to actual and potential litigation and claims., and reviewing correspondence with HMRC, relevant regulators and the charty's legal advisors. There are inherent limrtalions in our audrt procedu$ described above. The more removed that lawg and regulations are from financial transactions, the less likely it is that we would become aware of non- compliance. Auditing standards also limit the audit procedures required to identify non-compliance with law5 and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud be harder to detect than those that arise from error as they may invofve deliberate concealment or collusion. 16
Ridley Hall, Cambridge Company Llmitod by Guarnntoo Independent Auditorfs Report to the Members of Ridley Hall. Cambridge (tontinued) Year èndèd 31 July 2023 A further description of our responsibilities for the audit of the financial ststements is located on the Financial Reporting Council's website at www.frc.org.ukJauditorsresponsibilities. This description fomis part of our audrtor'5 report. U$• of our report This report is made solely to the chanty'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 charity's members those matters are required to stsle to them in an audrtorfs report and for no other purpose. To the fullest extent pemitted by law. we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audrt work, lor this report, or for the opinigns we have formed. Mr Shane Tharby (Senior Stalutory Auditor) For and on behalf of Stree15 Audit LLP Chartered accountsnls & slatulory auditor 3 Wellbrook Court Girton Cambridge C83 ONA 13 December 2023 17
Ridley Hall, Cambridge Company Limitod by Guarant•¥ Statement of Financial Activities (including income and expenditure account) Year ended 31 July 2023 2023 Restricted nds Total funds Total funds 2022 Unreslricled funds Note Income and 8ndowm8nts Oonations and grants Charitable activities Other trading acb'vitses Investment income 158,881 971,978 564.636 1,240 10.204 2.040 169,085 974,018 S64,636 1,240 1.708.979 103,748 1,113,289 365.358 224 Totsl Income 1.696.735 12.244 1.582,617 Exp•ndlturo Expendbture on raising fvnds.. Costs of raising donations and legacies Expenditure on charitsble activities Taxation 43.233 1.924.637 5,463 43.233 1.931.859 5,463 45.718 1.868,197 10.11 13 7.222 Totsl •xwndlturo 1,973,332 7,222 1,980,554 1.913,915 Net eXndIture {276.S971 5.022 1271.5751 1331.2981 Transfers between funds 18 29,250 129.2501 Other re¢ognlsed galn$ and lo$$es Actuarial gainslllossesl on defined benefrt pension schemes N•t movomont In funds 3,000 3.000 10.000 {244,3471 (24,228} 1288.5751 1321,2981 R•¢onciliation of funds Total funds brought forward Totsl funds carrfed forward 4,556,253 105.262 4,661,515 4,392,940 4.982,813 4,311,906 81.034 4.861,515 The statement of financial ath'vilies includes all gains and losses recognised in the year. All income and expenditure derive fr¢)m ¢onbnuing a¢ts'vrties. The notes on page$ 21 to 38 form part of these financial statements. 18
Ridley Hall, Cambridge Comparry Umlled by Guarant ststem•nt ol Flnanclal Posltlon 31 July 2023 2022 Rx8d assèts IntaryJible assels Tangiblè frAI assets 19 1.210 4.508,522 4.SJg,732 4.3S9.074 4.369,074 Curr•nt a8s•ls Debtors Cash ai bank and in hand 4(311 105.253 11fj.245 216.986 14661 333,231 Cr•dltors'. amounts lalllng d wtthln on• y•ar Not current 119.898 170,448 162.783 4.672.515 Totsl ajjets less cuThent Wabllltleg 4.391940 Provbglons Pensiv ¥miLgr obligab'or 11,C¥XJ 4,861,515 4391940 Funds ofthe charlty Restricted fwds Unrestricted fiJnds'. Defined benefit penwn resèrvè Other unrestricted inccffle funds 81.034 105.262 111.COJI 4,%7.253 4.311.906 4.311,906 Total unrnstrlct•d lunds 4.5S3.253 Total charlty funds 4.392,940 4,661,515 These finanL¥al statements ha Len preparexl wi with the kyovisions 8ppliL3ble to cOrnpanV sutr4.ect to the srn¥l ccwnpanies. regme. These finanual statements apwoved by the toard of i i /izl.%oia aTrJ ore S19 on be11 of the Lbwd by.. tees and autrk)rised for e Mr Mark Spdman Ch8innan of the Trustees Kevin Holmes Chaiman olthe FwHnce Ccfflmittae The notes on p•y•s 21 to 38 forni part ofthg8•llnanclal •tst•mgnts. 19
Ridley Hall, Cambridge Company Llmltod by Guarnntoo statement of Cash Flow3 Year èndod 31 July 2023 2023 2022 Cash flov•B from operating activities Net expenditure 1271.5751 1331,2981 Adjustments for.. Oepreciation of tangible fixed assets Amortisalion of intsngible assets Other interest receivable and similar income Taxation 180.471 1.210 11.2401 SA63 180,157 1.320 12241 Changes in.. Trade and other debto Tratle and other creditors ProvisKsns and employee benefits Cash generated from operations 67.934 156,2131 18,0001 177,5041 12.173 112,0001 181.9S01 1227.3761 Interest received 1,240 {80,7101 1227.1521 224 Net cash (used inlfftom operab'ng activr¢ie$ Cash flows from Inv•stSng a¢tivltl•$ Purchase of tangible assets Net cash used in investing activities {31.0231 {31.0231 136,5691 136,5691 Nèt dècrna$• In cash and $h •qulvaltnts Cash and cash •qulval•nts at boginnlng of y•ar Ca$h and ¢a$h èqulval•nts at ond of yèar 1111.7331 1263,7211 216.986 480.707 105.253 216.988 The notes on page$ 21 to 38 form part of these financial statements. 20
Ridley Hall, Cambridge Company Llmltod by Guarant Notes to the Financial Statements Year èndod 31 July 2023 Genèral inforniation The charity is a private company limrted by guarantee, registered in England and Wales and a registered charrty in England and Wales. The address of the registered office is Ridley Hall Road, Cambridge. C83 9HG. The charity is a public benefft entity as defined ty FRS 102. Statemont of ¢ompli•nco These financial statements have been prepare(l in compliance with FRS 102, The Financial Reporting Standard applicable in the UK an¢J Ihe Rewblic of Ireland,, the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republi¢ of Ireland IFRS 1021 (Charities SORP IFRS 10211, the Companies Act 2006 and the Charitses Act 2011. A¢¢ounting poll¢les Basls of proparation The financial stslements have been prepared on the historical cost basis. The financial stslements are prepare(l in stefhng. which is the fvncbonal curyency of the enlily. Golng ¢on¢om The College acknovAedges a deficit of £268.575 for the year. However, the College are confident there is no material uncertainty relating to going ¢on¢em due lo preparing detsiled Cashflow forecasts vthich predict an improvement in perfomiance, and as a resuli, no going concem issues. The College are also in the process of selling one ol their properties which will raise funds, as per note 31 ofthe financial stslements. Judgements and k•y $our¢e$ of estlmatlon un¢ert•lnty The preparation of the financial statements requires management to make judgements. eslimales and assumptions that affect the amounts reported. These estimates and judgements are Continually reviewed and are based on experience and other factors, Induding expectations of future evenl$ that are believed lo be reasonable under the ¢ircumstan¢e$. Signrficanl judgements There are no significanljudgemenls (apart from those involving estimations) that management has made in the process of applying the entty's accounting policies anLI that have the most signrficanl effect on the amounts recognised in the financial ststements. Key sources of estimation uncertainty Accounting estimates and assumpb.ons are made conceming the future and, by their nature. will rarely equal the related actual outcome. The key assumptions and other $our¢es of estimation uncertainty that have a signrficant risk of causing a material adjustment to the carrying amounts of assets and liabilits'es wrthin the nexi financial year are as follows.. Tangible fixed assets are recognised at cost. less accumulated depreciab"on. Depreciation is Charged over the estimated useful lrfe of the asset to ti's esb"m*ed residual value. 21
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 Accounting polici Icontinuedj Fund accounting Unrestricted funds a available for use at the discretion of the trustees lo fvrther any of the charity's purposes. Designated fvnds are unrestricted funds eamiarked by the trustees for a particular fvture PToject or commrtmenl. Restricted fvnds are Subjected to restricb'ons the1rexpendi1u declared by the donor or through the terms ofan appeal, anfj fall into one of sub<la$ses.' reStrle income fvnds or endowment funds. Income and èndowm•nts All income is included in the slalemenl of financial acbthties when enliuemenl has passed lo the Charity, r( is probable that the econom benefrts associated wth the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular eategories ol income.. income from donatsons or grants ts recognised vthen there is evidence ol entiU&menl to the gift, receipt is probable and its amount can be measured reliably. legacy income is recognised when receipt is probable and enlrtlement 1$ estsblished. income from contracts for the supply of services is recognised wilh the delivery of the contracle(I service. This is classified as unrestricted fvnds unless there is a contractual requirement for it to be spent on a parb'cular puipose and returned rf unspent, in which case it may be regarded as reslricted. ExndIture Expenditure is re¢ognised on an accruals basis as a liabilty is incurred. Expenditure includes any VAT which cannot be fully recovered, and is cla$$ified under headings of the stslemenl of financial activities lo which il relates.. expenditure on raising lundg indudes the costs of all ndraising activities, events and non- ¢haritsble trading activities. expenditure on charitable activities includes all costs incurred by the charity in undertaking a¢tivilies that further ils charrtable aims for the benefrt of rt5 beneficiaries, including those support Costs and costs relating lo the governance ofthe charity. other expenditure includes all expenditure that is neither related to raising funds forthe charity nor part of its expenditure on charitable activities. AII costs are allocated lo eXperrtUre categories rellecting the use of the resource. 22
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 Accounting polici Icontinuedj Operating leases Lease payments are recoynised as an expense over the lease lem on a straighl-line basis. The aggregate benefit of lease in¢entsves is recognised a$ a reduction to expense over the lease temi, on a straight-line basis. Cash and cash èqulvalents Cash al bank and in hand is held to meet the day to day running costs of the charity as they fall due. Cash equivalents are short term, hhlY liquid investments, in 125 day notice. or less, interest bearing savings accounts. Intsnglble a$$ots Intangible assets are initialty recorded at cost. and are subsequentty stated at COSt less any accumulated amortisation. Amortl8*tlon Amortisalion is calculated so as Io WTile off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows.. Cloud based server 25% straight line If there is an indication that the has been a significant change in amortisation rate, useful lrfe or residual value of an inlangible a$sel, the amortisation 1$ revised prospectively lo reflect the new eslirnates. Tangible assets Tangible assets are inibally recorded atcosl, and subsequenuy stsled alcosl less any accumulated depreciation. 23
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 Accounting polici Icontinuedj Depreciation Expenditure on fumiture and fittings and equipment is captalised and wrrtien off iespeclively al 100A and 1(>25% on cost annually. Freehold land is not depreciated. Freehold buildings including refvrbishment and improvement costs are depreciated on a straight line basis over their useful economic lives which are esbmated to be bethen 10-25 years, except where the estimated residual values (based on pr$ al the lime of acquisrtionl of the buildings are not materially different ftom their carrying value in the a¢unts. Improvements are not depreciated until they are brought into use. Ridley Hall conb.nued lo be the joint owner of 15 Guest Road, Cambridge, a residential property purchased in 1989 for £190.000. The purchase pnce ha5 been mel by a loan from the Church Commissioners which is only repayable upon realisalion. Under the agreement. the Church Commissioners benefft from any incfease in the value of the propety on sale and the Charity is responsible for the repair and maintenance of the property. This property and corresponding loan have therefore not been included wrthin the balan sheet. InYo$tment Income Investment income is credited to the appropriate fund aCrunts. Govemment grants Government 9ranls are recognised al the lair value of the asset received or receivable. Grants are not re¢ognised until there is reasonable assurance that the company wiu comply with the conditions attaching to them and the grants will be received. ere the grant does not impose specified future performancfrrelaled conditions on the recipient, il is recognised in income when the grant proceeds are received or receivable. whe the grant does impo$e $pecified future perfomanCrelaled nditIOnS on the recipient. il 1$ re¢ognised in income only when the perf0mnce-re1ated conditions have been met. Where grants received are prior to sat15fying the revenue recognition crrtena. they are recognised as a liability. Value added tax As the Charrty's activities are classffied as exempt or non-business activities lor the purposes of value added tax, the Charity is unable to reclaim the value added tax which it incurs on its purchases. Expenditure in these financial statements is therefore shown inclusive of value added tsx. 24
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 Accounting polici Icontinuedj Provisions Provisions are recognised when the enb.ty has an obligation at the reporting date as a result of a past event, it is probable that the entity wll be required to transfer economic benefits in setuement and the amount of the obli9alion can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount ol the provision as an expense. Provisions are Initially measured al the best estimate of the amount required lo settle the obligation al the repoty'ng dale and subsequenyy reviewe(l at each p0.n9 dale and adjusted lo reflect the current best estimate ol the amount thal would be required to settle the obligation. Any adjustments to the amoun15 previously recognised are recogni5ed in income or expenditure unless the provision was originally recognised as part of the cost of an asset. When 3 provision 15 measured al the present value ol the amount expected lo be require<1 lo setde the obligation. the unwinding of the discount 1$ recognised a$ a finan¢e ¢ost in the statement of finan¢ial adivits'es in the period it ari$es, and is allocated lo the appropriate experKliluTe heading. Dèflned contrlbutlon plan8 Contributions lo defined conlributson pL3ns and other plans a¢VnIed for as defined contribution plans are recognised as an expense in peric4J in %thi¢h the relaled service 1$ provided. Any agreed deficit recovery conlnbubons are recognised immediately once agreed. Further details about the Charity's pension arrangements can be found in Note 25 of the financial stslements. Trnnsfgr of a$¥ets on fomiatlon of ngw corporate ¢harlty All aclivilies. assets, liabilities and corresponding funds from the old unineorporaled charity, Ridley Hall, (Charity number 3114561 were transferred to the new corporate charity, Ridley Hall, Cambridge (Charity number 11570041 as of 1 August 2014. As a result all tangible fixed as$el$ Iran$ferred. including propety assets. were inrtially recorded in this new corporate charity at their net book value, separately split in the fixed asset note beeen cost and accumulated depreciation at the time of transfer in the previous unincorporated charity. No fair value adjuslmenls had been made lo reflect the open market value of the propèrty as al the lime of transfer. FLrture depreciation on the tangible fixed assets transferred have ntinued to be cal¢ul*ed based on the original purchase price and estimated useful economic lives as al the time of original acquisits"on. The trustee's are of the opinion Ihal accounting for the transfer in this way gives a true and fair view and best reflects the substance of the transfer such that nothing fundamental has changed. Limited by guarantee The charity is a company limited by guarantee and has no Sha capitsl. The liability of each member in the event of wnding up is limited to £1. 25
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 Donations and grants Unrestricted Funds Restricted Total Funds Funds 2023 Donations Donations and appeals 61,157 7,954 69,111 Grants Grants receivable 97,724 2,250 99,974 169,085 158.881 10,204 Unrestricted Funds Reslricled Totsl Funds Funds 2022 Donations Donations and appeals 64.386 750 65.136 Grants Grants receivable 1.000 37,810 38,610 65,386 38,360 103,748 Charltabl• actlvltb88 Unreslri¢ted Funds Reslricled Total Fund$ Funds 2023 Fees Sabbaticals 955,734 16.244 2,040 957,774 16,244 971.978 2,040 974,018 Unrestricted Funds Reslri¢led Total Funds Funds 2022 Fees Sabbaticals 1.098.740 12,309 2,240 1.100.980 12,309 1.111,049 2,240 1,113,289 26
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 othor trading activitias Unrestricted Total Funds Unrestricted Totsl Funds Funds 2023 Funds 2022 Conference income Rental income Catering income Other income 143,229 225,920 125.292 70.195 143.229 225,920 125,292 70,195 564,636 78,444 184,019 77,817 25.078 78,444 184,019 77.817 25.078 564.636 365.358 365.358 In¥•stment Incom• Unreslricteil Totsl Fund$ Unre$lri¢led Total Funds Funds 2023 Funds 2022 8ank interest receivable 1.240 1,240 224 224 Costs of ralslng donatlons and1oga¢l Unrestricted Total Funds Unre$lri¢led Total Funds Funds 2023 Funds 2022 Development office costs 43.233 43,233 45,718 45.718 10, ExndItUre on charftabl• actSvltl¢s by fund typ• Unrestrithd Funds Reslricled Totsl Funds Funds 2023 Operation ol Iheok)gical college and provision of staff and student housing Support costs 1.631.434 293.203 7,222 1,638,6S6 293,203 1.924.637 7,222 1,931,8S9 Unrestricted Funds Restricted Total Funds Funds 2022 Operation oftheok>gical college and prowsion of stsff and student housing Support costs 1,558,078 284,277 25,842 1.583,920 284,277 1.842,355 25,842 1,868,197 27
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 11. Expgndituro on charitabla activities by activity typ Activrties undertaken directly Support Total fund$ costs 2023 Operation of theological college and provision of staff and student h$sIng Governance costs 1,638.656 264,683 8.520 1,923,339 8,520 1,931,859 1,638.656 293.203 Activrtie$ undertaken directy Support Total funds costs 2022 Operation of theological college and provision of staff and sludenl housing Governance costs 1,583.920 277,002 7,275 1,860,922 7,275 1.583.920 284,277 1,868,197 12. Analys18 of support costs Total 2023 Totsl 2022 Wages and salaries Employer'$ NIC Pension costs Audit fees Communication costs Finan¢e fees Admin costs Reception costs IT costs 150.279 14,927 1S.028 B.520 32.141 5.450 39.180 6.816 20.862 146.890 14,798 14.571 7.276 41.259 5.334 25,280 8.103 20,766 293,203 284,277 28
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 13. Taxation Major components of tax expense 2023 2022 Current tax: UK current tax expense Taxation S.463 5.463 Reconciliation of tax expense The lax assessed on the nel expendrture for the year is higher than 12022." higher than) the Standard rale of Corporation tsx in the UK of 19%12022'. 19%)- 2023 2022 Net expenditure befNe laxalion Net expendrture by rate of lax Net expenditure on charrtable acitwities Tax on expenditure 1266.1121 1331.2981 150,5611 161.0471 56.024 61,047 5A63 14. Net exwndlturo Net expenditure is stated after chargiW{creditingl'. 2023 2022 Amortisalion of intsngible assets Depreciation of tangible fixed assets Foreign exchange differences 1,210 180,471 1.320 180,157 19431 15. Auditots remunoratbon 2023 2022 Fees payable for the audrt of the financial statements 8.520 7,276 16. Staff costs The total staff costs and employee beneffts for the reporting period are analysed a5 follows.. 2023 2022 Wages and salaries Social security costs Employer contribub.ons lo pensK)n plans 941,586 79,084 119.430 913,215 78,095 117,404 1.140.100 1,108,714 29
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 16. Stsff costs (conlinued) The average head count of employees during the year was 4012022.. 38). The average number of full-lime equivalent employees during the year is analysed as follows.. 2023 No. 2022 No. Academic Adminislralion Catering Domestic Premises RLM Development 14 14 30 30 No employee received employee benefits of more than £60.000 during the year12022.' Nill. Kgy Managemgnt Personnol Key management personnel include al persons that have authority and responsibilrty for planning, directing and controlling the activities of the charity. The total compensation paid lo key management personnel tor services provi¢Jed to the chanty was £241.56812022. £232.4491. 17. Trustee remun•r4tion and expenses The trustees received remuneration or other benefits from the charity in the current or previous year. During the year. hvo 12022." one) trustees were reimbursed for travel and subsistence expenses lotalling £26712022.. £2271. 18. Transfer8 bet1n funds During the year. £29.250 has been transferyed from the UK Bursary restn.cted fvnd to general funds in relation lo the $ts involved in funding the tuition for sludents. 19. Intangible assots Cloud based Intsngible sèrvér Cost At 1 August 2022 and 31 July 2023 Amorti$ation At 1 ALJgust 2022 Charge for the year At 31 July 2023 Carying amount At 31 July 2023 At 31 July 2022 5,280 4,070 1,210 5,280 1,210 30
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 20. Tangible fixad assats Freehold Equipment Fixtures and property frtb.ngs Total Cost At 1 August 2022 Additions 5,584,175 10.261 288,712 19,874 430,744 888 6.303,631 31.023 At 31 July 2023 Depreciation At 1 August 2022 Charge for the year At 31 July 2023 Carylng amount At 31 July 2023 At 31 July 2022 5.594,436 308,586 431,632 6.334,654 1,233,291 149,751 258,885 10,191 302,933 20,529 1.795,109 180,471 1.383.042 269.076 323.462 1.975,580 4,211,394 39,510 108,170 4,359,074 4.350.884 29,827 127,811 4,508.522 Included within Freehold Propety is land and buildings of £1,869,15712022'. £1,869,157) which is not depreciated. 21. Debtorn 2023 2022 Trade debtors Prepayments and accrued income Other debtors 30.965 12.242 S.104 48.311 64.589 48.400 3.256 116.245 The debtors above indude the followng amounts falling due after more than one year.. 2023 2022 Trade debtors 11.750 15,500 22. Cash and cash equivalents Cash and Cash equwalents comprise the foll¢)wing". 2023 2022 Cash al bank and in hand Short-lerm deposits 104.699 554 187,394 29.592 105.253 216,986 31
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 23. Croditors: amounts falling within one year 2023 2022 Trade creditors Accruals and deferred income Corporation tax Social security and other taxes Other creditors 19,437 6S.504 5.463 20.782 8.512 119.698 25.944 110,541 22.397 11.586 170.448 24. Provlslon$ Pénsions and similar obllgations At 1 August 2022 Deficit contributions paid Other movements 11,000 18,0001 13,0001 At 31 July 2023 The pension provision is for the agreed deficit recovery plan in respect of the Church of England Funded Pension Scheme. Further details of the scheme a5 disclosed in note 25 to the account5. 25. PensSons and othor post rntlrnm8nt b8n8fits Defined contrlbutlon plans The amount recognised In income or expenditu as an expense in relation to defined contribution plans was £119.43012022". £117.4041. Ridley Hall. Cambridge participates in the Church of England Funded Pensions Scheme for slipendiary clergy, a defined benefft pension scheme. This scheme is administered by the Church of England Pensions Board. which holds the assets of the scheme separatefy from those of Ridley Hall, Cambridge and the other participatsng employers. Each participating employer in the scheme pays contributions at a common contribution rale applied to pensionable Stipends. The scheme is considered to be a multMployer s¢heme as described in Section 28 of FRS 102. This means it is not possible to attribute the Scheme's assets and liabilities to each specrfic participating employer, and this means that contn"butions are accounted for a5 if the Scheme were a defined conlnbulion scheme. The pension costs charged to the SOFA in the year are Contributions payable towards benefits and expenses a¢¢nJed in that year. plus the figures highlighted in the table below as being recognised in Ihe SOF A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed wa5 carried out as al 31 December 2021. The 2021 valuation revealed surplus of £560m. based on assets of £2,720m and a ftjnding tsrgel of £2,160m, assessed using the following assumptions.. 32
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 25. nsionS and other post rntiromant b8n8ffts (conthTruedl average discount rate of 2.7% p. RPI inflation of 3.6% p.a. (and pension in¢ase$ cMsistent th this)", CPIH inflation in line with RPI less 0.8% pre 2030 moving lo RPI with no adjustment from 2030 onwards., Increase in pensionable stipends in line wrth CPIH" Mortality in accordance 90% of the S3NA tables. with allowance for improvements in mortality rates in line with the CM12020 exiended model wth a long term annual rate of improvement of 1.5%, a smoothing parameter of 7, an initial addition to mortality improvements of 0.5% pa and an alkjwance for 2020 data of 0% li.e w2020 - 0%). Followng the 31 December 2018 valuation. a deficit recovery plan was pul in place until 31 December 2022 and the deficrt recovery contributions las a percentage ol pensionable stipendsl were as set out in the table below. An interim reduction to deficit contributions to 3.2% pensionable stipends was made with effect from 1 April 2022. Followng finalisalion of the 31 December 2021 valuation, defici( contribub'ons ceased effect from 1 January 2023. since the Scheme was in surplus. As at 31 December 2020 and 31 December 2021 the deficit recovery contributions under the recovery plan in force were sel out in the table below. For senior office holder, pensionable slipendg are adjusted in the calculations by a multiple, as sel out in the Scheme's rules. January 2018 10 December 2020 11.9% January 2021 to December2022 7.1% Deficit repair contributions Seth'on 28.11A of FRS 102 requires agreed deficit 0very payments to be recognised as a liabilty. However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liabilty as at 31 December 2022 is nil. The movement in the balance sheet liabilty over 20218nd over 2022 is sel out in the table below. 2022 2021 8alance sheet liability at 1 January 11.000 33,000 Deficit contribution paid Remaining change lo the balance sheet liabilty. Irecognised in SOFA) {8.0001 112.0001 13.0001 110,0001 Balance sheet liability at 31 December 11,000 'Comprises change in agreed deficit recovery plan, and change in discount rate and inflats'on assumptions between year-end5. Thi5 liability represents the present value of the deficrt contn"bution5 agreed as at the accounting d*e and has been valued using the followng assumptions. No assumptions are needed for December 2022 as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2021 since pensionable stipends for the remainder of the recovery plan were already knovm. 33
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 25. nsionS and other post rntirnmant b8n8ffts (conthTruedl December 2022 nla nla nla December 2021 0.0% pa nla -1.5% pa December 2020 0.2% pa 3.1% pa 1.6. pa Discount rale Price inflation Increase lo total pensionable payroll The legal structure of the scheme is such that another participating employer fails, Ridley Hall, Cambridge could become responsible for paying a share of that participating employer's pension 26. Analy$ls of charltablo funds Unrestricted fund$ At l Aug 2022 Gains and At losses 31 Jul 2023 Income Expenditure Transfers Premises fijnd Property improvement and maintenance fvnd Annual fund UK Bursary fund Overseas Bursary fund Student Aid Pension Reserve Special Inilialives fund General fund 4,505,882 1150,6591 4,3S5,223 1.254 1.227 14,250 75 54.982 5,472 1,329 1,297 10,472 154.9121 19.2501 5,058 7,115 111,000} 300 1.125 5,358 7,255 {9851 8,000 3,000 32.467 1.634.781 11.980.347) 4.556,253 1.696,735 11,973.3321 244.071 169,0281 3,000 4,311,906 29.250 At 1 Aug 2021 Gains and Al losses 31 Jul 2022 Income Expendrture Transfers Premises fvnd Property improvement and maintenance fvnd Annual fund UK Bursary fund Overseas Bursary fund Student Aid Pension Reserve Special Initiatives fund General ftjnd 4,650.791 1144.9091 4,505,882 7,431 8.282 13,175 280 59.579 4.325 16.4571 166.6341 1,254 1,227 14,250 13.2501 4,195 7.228 133.000) 5,058 7,115 111.0001 350 {4631 12.000 10,000 2,818 12.8181 231.389 1.476.620 11.893.542) 4.892.309 1.542.017 11.888.073) 218.000 32,467 10.000 4.556,253
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 26. Analysis of charitabla funds (continuedj The Premises Fund serves to account for the reserves held wthin the tangible fixed assets from which the College operates. The transfer betsyeen this fund and the general fund represents movements in tsngible fixed assets during the period. The Property Improvement and Maintenance {PIMI Fund is established to provide for funding for any work undertaken by the College across its physical estates, at our main site in Ridley Hall Road and beyond. The fund is concerne<l wlh the paIr. day lo day maintenance. adaptation and pkeep of any exisbng premises of the llege induding buildings, grounds an¢J gardens. The Annual Fund enables the College to continue to provide the best possible setting for its students, formabon. Key areas of the College that benefit from this Fund are leaching. staff training, the library, support services and the chapel. The annual fund consists of donations given to the college for any purpose and so are treate(J as desnated. The Bursary Funds provide bursaries in support of both UK and Overseas students. The role of the UK Bursary Fund is to contribute towards the costs of UK based students, in those cases where sludenl costs may not be covered. The OvoTsèa$ Bursary Fund exists to provide financial assistance lo those students from overseas who would not otheise be able lo study al the College. The StudentAld Fund is Inrned wrth [VIding financi41 support for students who have specific needs which cannot be mel from their main grants. The lund's use is al the discretion of the Principal and all relevant expendrture is charged against the lund. The Penslon R•$er¥e refle¢ts the provisi¢)n arising from the adoption of FRS102. The Spoclal Initiatives Fund was created followng a donalion of £1.45 million given lo encoura9e and enable Ridley Hall in pursuing sperAal initi3tsves the aim of providing regular income streams lo enhance ils future sustainability as a theological college in the Church of England. This broad aim give$ the tru$lees wde discretion lo appty these fvnds in the best way they see fil, $0 this is to be treated as a designated fvnd. Funds spent on capilal items in Ihe previous year were transferred lo the premises fund reserve. The remaining balance was fully spent at the year end. The General Fund is the balance of UnstrIcte<l funds after the designated funds listed above have been set aside by the Trustee Board. 35
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 26. Analysis of charitabla funds (continuedj Restricted funds At 1 Aug 2022 Gains and At losses 31 Jul 2023 Income Expendiiure Transfers Endowment fund UK Bursary fund Property improvements and maintenance fund Newbigin Centre 37,180 58,835 37,180 31.835 2,250 129,2501 7.204 2.790 {3,915) 13.3071 17.2221 129,2501 3,289 8,730 9.247 105,262 12,244 81,034 At 1 Aug 2021 Gains and Al losses 31 Jul 2022 Income Expendtture Transfers Endowment fund UK Bursary fund Property improvements and maintenance fund Newbigin Centre 37,180 43,725 37,180 58,835 37.610 122.5001 9,599 2,990 13.3421 125.8421 9,247 90,504 40.600 105,262 36
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 26. Analysis of charitabla funds (continuedj The Endowment Fund consists of donations given to a5SlSt the College to build up a capital fund and Is Irealed as a re5trided fund. The interest earned on the monies is available for use In supporbng a variety of educatsonal uses within the College as detemined by the Board ofTruslees from time to time. The Bursary Funds provide bursaries in support of both UK and Overseas students. The role of the UK Bursary Fund is to contribute towards the costs of UK based students. in those cases where student costs may not be covered. During the year £29.250 of 8ursaries have been granted against tuition fees and therefore this amount has been transfrrred from the restricted UK Bursary fund to general reserves. The Property Improv•mont and Malnt•n•nc• IPIM) Fund has been established lo provide funding for any work undertaken by the College acros5 its physical eslales. al our main site in Ridley Hall Road and beyond. The fund is focused on longer lemi projects that seek lo refurbish. renovate, or improve our existing eslate. the lund's scope would in¢lude buildings. walls, and gardens. The Nowbigln Contro is named in memory ol Bishop Leslie Newbigin. a pioneer in thinking through the missionary challenge facing ¢hurches in the ccffjlemporary West. 11 aims to attract research students focusing on themes relab.ng to the Gospel and Weslem culture and lo develop resources for the wider church. The remaining funds in the table above contain the restricted element of any donations towards the aclivilie5 explained earlier in this note. 27. Analysls of not a88•ts betlhwn funds Unreslricted Funds Restricted Totsl Funds Funds 2023 Intangible assets Tangible fixed assets Current a$Selslllia'liIie$I Provisions 4,359.074 147,168) 4,3S9,074 33,866 81,034 Net assots 4.311,906 81,034 4,392,940 Unreslricted Funds Restricted Total Funds Funds 2022 Intangible assets Tangible fixed assets Current assets Provisions 1,210 4.508,522 57.521 (11,000} 1,210 4,508,522 162,783 111,0001 105,262 Net assets 4.556.253 105,262 4,661,515 37
Ridley Hall, Cambridge Company Llmltod by Guarnntoo Notes to the Financial Statements (eonknuÈd) Year èndod 31 July 2023 28. Analysis of Chang in nat dabt At 1 Aug 2022 Cash flows At 31 Jul 2023 Cash at bank and in hand 216,986 {111,733) 105,253 29. Capital commitm8nts Capital expenditure contracted for bul not provided for in the financial statements is as follows.. 2023 2022 Tangible fixed assets 49,374 30. Opgrating leas8 commitments The total hjlure minimum lease payments under nonancellable operab'ng leages are 89 follows.. 2023 2022 Not later than 1 year Later than 1 year and not later than 5 years 34,110 34,086 36,762 68,196 68.196 104.958 31. Post balanc• shoot Ovonts The College are in the prttess of di$F<J$irvJ ¢)ne of their PrOpee$. included in Freehold property, for proceeds of around £670,000. AS at 31 July 2023, the propety had a nel book value of £268,357. 32. Rèlatèd partit* The lolal amount of donations received from trustees thout condth'ons amounted lo £12,420 12022.. £10,368). There were no other related paty transactions in the currenl or prior year. 38