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2021-08-31-accounts

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE

REPORT AND FINANCIAL STATEMENTS

31 AUGUST 2021

Registered Charity Number: 1158440 Company registration Number: 09147032

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE

TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Contents

Legal and administrative details ....................................................................................................... 3 Structure, governance and management .......................................................................................... 4 Objectives and activities ................................................................................................................... 7 Strategic report............................................................................................................................... 14 Achievements and performance ..................................................................................................... 14 Financial review ............................................................................................................................... 17 Plans for future periods ................................................................................................................... 20 Trustees' Responsibilities Statement………………………………………………………………………………….22 Independent Auditors’ Report ......................................................................................................... 23 Statement of financial activities ......…………………………………………………..………………………………27 Balance Sheet ..………………………………………………………………………………………………………………28 Statement of Cashflows ……………….....……………………………………………………………………..……….29 Notes to the financial statements……………………………………………………………………….…………30-40

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DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Legal and administrative details

Registered charity name Wesley House, Cambridge Registered charity number 1158440 Registered company number 9147032 Principal office and registered office Wesley House, Jesus Lane, Cambridge, CB5 8BJ

Trustees / directors of Wesley House, Cambridge

Appointed Term ends
Janet Arthur 12/11/2019 31/08/2026
Dr Roger Paul Ashley 24/07/2014 31/08/2024 Chair of Finance and General
Purposes Committee
The Revd Stephen Burgess 16/11/2016 31/08/2023
The Revd Catherine Dixon 25/02/2015 31/08/2025
Christine Elliott 12/11/2019 31/08/2026
Bala Gnanapragasam 12/11/2019 31/08/2026
The Revd Dr Stuart Jordan 24/07/2014 31/08/2023 Chair of Trustees
Elizabeth Ovey 24/07/2014 31/08/2024
David Peniket 12/11/2019 31/08/2026 Chair of Development Committee
Professor Nigel Poole 17/02/2021 31/08/2027
The Revd Julian Pursehouse 10/06/2015 31/08/2025 Chair of Academic Committee
David Scahill 01/09/2017 31/08/2023
The Revd Colin Smith 16/11/2016 31/08/2023

Auditors:

Chater Allan LLP, Chartered Accountants and statutory auditors, Beech House, 4a Newmarket Road, Cambridge CB5 8DT

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DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

The Board of Trustees presents its annual report and the audited financial statements for the year ended 31 August 2021.

Structure, governance and management

Governance

Wesley House, Cambridge is governed by its Articles of Association adopted on 24th July 2014.

Constitution, governance and management structures

Wesley House, Cambridge is constituted as a private company limited by guarantee. It is registered at Companies House in England and Wales as company 9147032. The Trustees are the directors of the company and are also its members. The liability of Members is limited to £1.

The Company is required to have between nine and fifteen members, 75% of whom must be members of the Methodist Church in Britain.

The Trustees are required to hold at least three meetings each year, at which one third of the total number of Trustees must be present to be quorate. Decisions at trustee meetings are made by simple majority votes.

Trustees have utilised their ability to delegate powers to committees of two or more Trustees (one of whom shall chair the committee) and there are currently three such committees in place; Academic, Development, and Finance & General Purposes. The Library committee and Holiness Editorial Board which report to the Academic committee are advisory bodies and neither has delegated powers. The committees also include Wesley House employees and co-opted volunteers with relevant expertise.

The day to day management of the College is delegated to the Principal.

Methods used to recruit and appoint new Trustees

The process for appointing new Trustees is set out in the Articles of Association as follows:

15.1. By no later than 30 September in each calendar year, the Trustees shall provide notification in Writing to the [Methodist] Council of any vacancy in the Trustee body which is due to arise on 1 September next or in the twelve months following.

15.2. The Council may, by no later than 31 January in the following year, provide the Trustees with a list of proposed nominees for appointment as Trustees (with no more than one nomination per vacancy).

15.3. By no later than 31 March in that year, the Trustees shall provide the Council with a final list of nominations, consisting of any list provided to the Trustees in accordance with Article 15.2 above with such omissions and replacement or additional candidates as the Trustees may have determined.

15.4. The Council or, if the Council declines or omits to do so, the Trustees shall seek the approval of the Methodist Conference, at its next session, to the nomination of the candidates determined between the Trustees and the Council in accordance with Articles 15.2 and 15.3 above.

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WESLEY HOUSE, CAMBRIDGE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

15.5. If the nominations are approved by the Methodist Conference, the Trustees shall resolve whether or not to appoint the candidates so nominated to hold office from 1 September following, or from the date thereafter on which the vacancy will arise (as the case may require).

15.6. The Trustees shall have power to co-opt any person to be appointed as a Trustee at any time to fill a vacancy in the Trustee body, save that any person co-opted as a Trustee in accordance with this Article shall automatically be presented as a nominee for ratification by the Methodist Conference at its next session, in accordance with Article 15.4. If so ratified, their term of office shall then be deemed to have commenced on the following 1 September after the date on which the Methodist Conference has met.

Training for Trustees

Training is offered to new Trustees in the form of a personal induction by the Chair of the Trustees.

Trustees are given a copy of our Governance Manual, updated annually, which provides information including the Governance Code of Conduct, committee structures and terms of reference.

Trustee changes

During the year we were pleased to welcome Professor Nigel Poole as a Trustee / Director. We were pleased that The Revd Catherine Dixon and The Revd Julian Pursehouse agreed to their appointments being extended for a further four years.

Staff changes

The following staff appointments were made in the year:

The Revd William Mullally Director of Supervision 1 Sept 2020
Dr Richard Davis Director of Contextual Theology 1 Sept 2020
The Revd Dr Paul Chilcote Interim Director of Global Wesleyan Theology 1 Jan 2021
Dr Helen Cameron Interim Director of Doctoral Pathways 1 Jan 2021
Daniel Stow Academic Administrator 6 April 2021
The Revd Dr Adam Ployd Vice Principal 23 August 2021

The Revd Dr Carole Irwin left Wesley House on 31[st] August 2021. The Trustees wish to record their thanks to Carole for her pivotal role in the reopening of the College as the first new students arrived in 2015 and all she has done for the College, its students, staff and residents, as a Tutor and then Director of Studies.

Arrangements for setting pay and remuneration of key management personnel

The Principal's pay during 2020/21 was set at the rate for presbyters of the Methodist Church in Britain, including a College Principal's allowance and the provision of free accommodation. From September 2021 the Principal’s status changed to became an employee of Wesley House at which point the stipend was converted into a salary, but still in line with the rate for a Methodist College Principal who is a Methodist minister.

The Business Director's remuneration was set by the Finance and General Purposes Committee at the time of recruitment at a rate that was considered necessary and sufficient to attract an individual with the skills and experience required. It increases annually by the same percentage as applied to the Principal's pay.

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WESLEY HOUSE, CAMBRIDGE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Wider networks: Cambridge Theological Federation

Wesley House is a founding member of The Cambridge Theological Federation (charity number 1099953; company registration number 4700056). Wesley House's students are admitted to accredited programmes managed by the Federation and taught by members of staff from the Federation's twelve partner bodies. The Federation's admissions policies govern the courses Wesley House can offer to students and acceptance onto those programmes. The Federation is responsible for the quality of teaching and monitoring and reporting to the various government bodies, such as the Office for Students. The Federation is licensed to sponsor student visas for international students.

In addition to academic policies, the Federation has a number of policies that impact on Wesley House such as IT and Safeguarding policies.

Wider networks: Methodist Church

Whilst Wesley House does not have a formal relationship with the Methodist Church in Britain (“MCB”), other than MCB’s role in appointing Trustees, the Principal is a presbyter in the British Methodist connexion and so bound by its policies and procedures. The Principal and a number of Trustees play an active part in the governance of MCB.

In May 2021 MCB and Wesley House agreed a Memorandum of Understanding which affirms a number of areas of mutual interest and engagement including Shared Methodist Identity, Ministerial Appointments, Supervision Training and Resourcing, the Holiness Journal and Continuing Development in Ministry.

On 1[st] September 2020 the status of the three Presbyter members of staff, the Principal, Director of Research and Director of Studies, changed. They ceased to be employees of Wesley House and became under the control of the Methodist Conference and were ‘stationed’ at Wesley House. This position was reversed on 1[st] September 2021 and all staff are now employees, including those who are ministers. From 1[st] September 2021 Wesley House staff are no longer eligible for membership of the Methodist Ministers Pension Scheme.

During part of the 2020/21 year the Principal was released for part of her time to work for MCB as the Connexional Director of Supervision, for which Wesley House was recompensed.

Wider networks: GBHEM

In August 2018 Wesley House signed a partnership agreement with the General Board of Higher Education and Ministry of the United Methodist Church, USA (“GBHEM”). This agreement establishes a Global Hub for Leadership, Education and Development in Britain, based at Wesley House. The Hub offers training and sabbatical opportunities to theological institutions affiliated with the Association of United Methodist Theological Schools and provides sabbatical opportunities to UMC Clergy, District Superintendents and Bishops. Along with other Hub members the College is a member of the International Association of Methodist Schools, Colleges and Universities (IAMSCU) and Methodist Theological Schools in Europe (MTSE).

Relationships between the charity and related parties

In addition to the relationship with the Cambridge Theological Federation as described above, Wesley House has a relationship with a third party which is a charity named, "Wesley House, Cambridge" (registered charity 311446). The latter has four Trustees, all of whom are also Trustees

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WESLEY HOUSE, CAMBRIDGE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

of the Wesley House that is the subject of this report. Charity 311446 has not been actively operating since the incorporation of this company when the assets were transferred to Wesley House in an Asset Transfer deed dated 1 March 2015 and is now dormant.

Objectives and activities

Our Purposes

The objects of the Charity are set out in the Articles of Association adopted on 24th July 2014 as follows:

4.1. The objects of the Company are to establish and maintain a college, hostel or institution within the precincts of the University of Cambridge for the training in theology and formation for ministries in a Wesleyan tradition of:

by providing or arranging for the provision of their tuition, academic supervision and mentoring and the provision of residential facilities in connection with such tuition, supervision and mentoring, subject to the requirements set out at Article 4.2 below.

4.2. The Company shall function as a post-graduate college enabling students to have access, as appropriate, to the benefits of University life and tuition, and applicants shall normally be required to hold an undergraduate degree (or equivalent) prior to being granted access to residence and/or tuition in the college, save that the Trustees shall have discretion to permit access to such number and proportion of students who do not already hold an undergraduate degree as they see fit.

Our vision is to be a globally significant resource for leadership and scholarship in the Wesleyan tradition for the sake of the flourishing of the church and the world.

In a polarising political, social and economic climate we believe that the Wesleyan tradition has wisdom to share through its holding together in creative tension of many seeming opposites, such as love of God and neighbour, prayer and scholarship, science and faith, the local and the global. In response to God’s reconciling work Wesley House is committed to bringing people into conversation and into community with each other and with God, for the sake of the flourishing of the whole earth.

Our mission as a higher educational institution is to

  1. Curate learning communities that pray, confer, research, learn and share their work and life as part of the body of Christ.

  2. Build global capacity for resourcing leadership and scholarship through partnership working.

3. Create and disseminate research in the areas of Global Wesleyan Theology, Leadership and Ministry Development, and Faith in Public Life and offer teaching and other educational opportunities shaped by that research.

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WESLEY HOUSE, CAMBRIDGE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

How the achievement of our aims will further our legal purposes

Our aims, as set out in our vision and mission, are directly related to furthering our purposes.

Curating learning communities that confer, research, learn and share their work relates to the object, “training in theology and formation for ministries”. It also relates to “provision of tuition, academic supervision and mentoring”.

Curating learning communities that pray…share their work and life relates to maintaining “a college, hostel or institution within the precincts of the University of Cambridge” and “the provision of residential facilities”.

Building global capacity for resourcing leadership and scholarship relates to “training in theology and formation for ministries”.

Creating and disseminating research and offering teaching shaped by that research relates to “training in theology and formation for ministries” and to “provision of tuition, academic supervision and mentoring”.

Strategies for achieving our stated aim

The main operating strategy to achieve our aim is to offer a range of accredited & non-accredited, full-time and part-time, residential & non-residential courses that attract sufficient numbers of students to build a self-sustaining business plan.

Essential to our ability to meet our objects is a strategic role within the Cambridge Theological Federation (the "Federation"). Through our membership of the Federation we are able to offer degree programmes validated by Anglia Ruskin, Cambridge and Durham universities and have access to a wide network of tutors and supervisors with a broader range of interests and expertise than we could manage by ourselves. Membership also provides access to Federation and University libraries.

Wesley House’s work is organised into three centres of activity, Global Wesleyan Theology; Leadership and Ministry Development; and Faith in Public Life.

The Centre for Global Wesleyan Theology , under the Directorship of The Revd Dr Paul Chilcote, supports scholarship and practice related to theology and spirituality in the global Wesleyan tradition, curating a network of global scholars for enrichment in both theological and spiritual engagement and fostering partnerships that develop capacity and effectiveness. It does this by providing opportunities for formal study and research, by offering webinars and workshops, and by engaging in conversation among diverse communities both locally and globally.

The Centre seeks to cultivate a spirit of genuine mutuality and to provide a venue for ongoing conversation, learning, and growth around theological concerns central to the Wesleyan community around the globe. Located physically in Cambridge and virtually through its international network of scholars, the Centre promotes the integration of Wesleyan theology and daily life in the diverse cultural contexts of the world.

The Centre for Leadership and Ministry Development , under the Directorship of The Revd Dr Adam Ployd, pursues scholarship and educational activities that investigate and cultivate new models of ecclesial leadership and ministry in a global context.

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WESLEY HOUSE, CAMBRIDGE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

It aims, in partnership where possible, to develop excellence in leadership, ministry and supervision practice through:

The Centre also hosts our work as a world centre of excellence for research, consultancy and training in Pastoral and Reflective Supervision, under the Directorship of The Revd Bill Mullally.

The Centre for Faith in Public Life , under the Directorship of Dr Richard A. Davis, supports and promotes the active, informed, and constructive engagement of Christians and churches in public life for furthering ‘the welfare of the city’, peace, justice, freedom, equality, and the common good. It does this through study, research, publishing, and conversations in the area of faith and public life.

The Centre provides a hub for public theology and Christian social ethical thought within Wesleyan traditions. The Centre aims to promote the public ministry and mission of churches and the public witness of Christians in their daily lives.

Informed by Wesleyan tradition, and inclusively ecumenical in spirit, the Centre offers theological resources and research into contemporary issues facing humanity.

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DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE

TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Activities in the period

Students

41% of our students were from Africa, 35% from the UK, 14% from North America and 10% from Asia and Continental Europe. The average age of our students was 50.

Five of our students were part of the residential community in Cambridge; two PhD students, both from Kenya, and three students preparing to be Mission Partners of the British Methodist Church, one of whom also took an MA.

In 2020/21, 49 Wesley House students were on the following courses delivered by the Cambridge Theological Federation.

With Anglia Ruskin University:

3 x PhD (full time) 21 x PhD (part time) 2 x MPhil (part time) 8 x DProf (part time) 11 x MA (part time) 1 x Postgraduate Diploma (part time)

1 x Postgraduate Certificate (part time)

With Durham University:

1 x MA (distance)

1 x PG Dip (part time)

There were no DTM students this year. Those who had planned to come were prevented from travelling by Covid restrictions.

In addition:

Two of the students on Federation courses received financial support from the Wesley House bursary fund, both of whom also received funding from the Methodist Church in Britain’s Scholarship and Leadership Training Programme (SALT). In total, Wesley House funded £22,000 of bursaries in the year. Wesley House sponsored the fees for a further ten students, as part of our funded programme with students from Africa University.

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WESLEY HOUSE, CAMBRIDGE

TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

In addition to supervising doctoral students during the year Wesley House academic staff taught on the following validated degree courses:

COVID-19

Along with the rest of the country, Wesley House entered a period of lockdown on 23rd March 2020. The College remained closed to visitors until restrictions began to be eased in September 2021 but we maintained a residential community of students, staff and other residents at all times with support staff in attendance for some of the time following Covid-secure working practices. The Chapel was closed for public worship and so our residents were able to continue to worship together as household groups. All teaching and most supervising was delivered remotely during the year, though this is not entirely a consequence of Covid as the majority of students are distance learners.

The main financial impacts of Covid in the year were a result of having no new residential students join us and of not being able to hire out rooms for meetings and events. Accommodation usage remained high throughout the year, helped by Jesus College renting a number of rooms for their postgraduate students.

31 & 32 Jesus Lane

During the year we completed the refurbishment of the two Georgian houses at 31 and 32 Jesus Lane. The project started on 9[th] March 2020 and was suspended by the first lockdown on 23[rd] March. The site was reopened on 11[th] May 2020 and the practical completion was achieved on 22[nd] February 2021 with the project completing on budget at c. £970,000. There was some delay, mostly caused by lockdown but also by delays in supply chains resulting from Covid and Brexit and some engineering complications relating to providing access to the top floor of 31 Jesus Lane from the Gutteridge Building.

The refurbishment completes the refurbishment and new-build project covering the entire Wesley House premises. This phase gives offices for the Institute for Orthodox Christian Studies in 31 Jesus Lane, three flats in 32 Jesus Lane, three meeting/training rooms, a staff office and a student common room.

We are very grateful for the grants we received to support this project from the Maurice and Hilda Laing Trust, the Inlight Trust, the Hunter Rowe Trust, and the Methodist Insurance Fund.

Holiness journal

In May 2021 we published our first issue of our free online journal, Holiness, with our new publishing partner, Sciendo. Holiness can be found at: https://sciendo.com/journal/holiness.

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DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE

TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Main activities undertaken to further the charity's purposes for the public benefit

We believe that Wesley House meets the public benefit requirement in the following ways:

Statement

The Trustees have reviewed Wesley House's activities during this period in line with the Charity Commission guidance on public interest benefit.

The criteria or measures used to assess success in the reporting period

The measure of success are as described in the Achievements and Performance section below.

Social investment policy

No social investments were made during this year.

Grant-making

Wesley House does not make any grants to third parties. Some bursary and scholarship funding is available for Wesley House students.

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WESLEY HOUSE, CAMBRIDGE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Volunteers

We are kindly supported by volunteers on our committees (Academic, Development, Finance & General Purposes) and the Editorial Board of Holiness who provide expertise in these areas.

The Trustees are grateful for the continuing support and expertise of The Revd Dr Brian Beck in his role as the College's Archivist.

The Trustees wish to record their thanks to Sarah Creeke who stood down as our volunteer Lay Chaplain at the end of the year.

Ahead of lockdown many people supported our community life and worship by freely preaching at services and leading evening discussion groups. Others have led and contributed to our seminars online. Whilst not a large time commitment individually, together these offer our students and community a broad and deep range of experience and viewpoints.

The Trustees are grateful to those in the Cambridge Circuit of the Methodist Church, and the wider East Anglia District, who support our students with placements and opportunities to serve within their churches and gain experience. We are particularly grateful to the teams at the churches in Cambridge, Wesley Methodist Church and Castle Street Methodist Church.

Finally, the Trustees themselves are volunteers and have given their time freely throughout the year.

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WESLEY HOUSE, CAMBRIDGE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Strategic report

The following sections for achievements and performance, financial review and plans for future periods form the strategic report of the Charity.

Achievements and performance

Our main achievements

The significant activities undertaken in the year and our main achievements are as described in the "activities in the period" section above.

Achievements against objectives set

The following achievements report against annual targets agreed by the Trustees for 2020/21 in the context of a five year Strategic Plan from 2018 to 2023.

Building a residential community of students and sabbatical visitors

In 2020/21 there were:

Teaching international cohorts

In 2020/21:

Offering short and online courses

In 2020/21 we

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WESLEY HOUSE, CAMBRIDGE

TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Developing the three centres as a focus and feed for research and study In 2020/21:

Participate proactively in local, global and ecumenical academic and educational relationships In 2020/21:

Publishing Holiness

Lucy Rogers bequest

The Trustees of Wesley House were delighted to be approached in the year by the executors of Mrs Lucy Rogers who bequeathed a portion of the residue of her estate, totalling £411,400, to create The Reverend Edward Rogers Scholarship in Christian Social Ethics in memory of her husband. Edward Rogers was President of the British Methodist Conference in 1960 and was General Secretary of the Citizenship Department of the British Methodist Church (now part of the Joint Public Issues Team) from 1954-1975. He authored many ecumenical and church reports and gave many public lectures on such subjects as the nature of security, poverty and Christian responsibility. The legacy will enable the Trustees to endow public lectures and student scholarships in the field of Christian social ethics.

Performance of material fundraising activities against the fundraising objectives set

Our objective was to raise £58,000 of donations, £70,000 towards the Centenary appeal and £67,000 for capital works in the year. We raised £109,000 from donors and £17,000 of grants. Recruitment of members of the Wesley House Foundation in the US was deferred because of Covid and is now expected to take place in 2022.

During the year we set up a separate website to support our fundraising which is at www.supportwesley.com.

Investment performance against the investment objectives

Wesley House holds no investments. All funds are held in instant access bank accounts.

Material expenditure incurred to raise income in the future

We spent a total of £5,000 to support fundraising in the year.

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WESLEY HOUSE, CAMBRIDGE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Significant positive and negative factors within and outside charity's control which have affected achievement of objectives

The COVID-19 lockdowns were the main factor in the year that affected achievement of objectives. The College was able to continue to meet all its academic commitments, maintain a residential community, and deliver its non-validated courses online.

Effects of Covid on our objectives included:

On the positive side, we were able to lease a number of student rooms to Jesus College which enabled us to maintain our normal occupancy rates throughout the year. There were also savings in travel costs and catering.

We were able to apply to HMRC for a temporary alteration to our partial exemption method for calculating how much VAT we can reclaim under a scheme set up to support “businesses whose trading activities have been affected by coronavirus as a result of which their existing partial exemption method does not provide a fair and reasonable result.” (Revenue and Customs Brief 4, March 2021). Our VAT advisers, PEM, gained agreement from HMRC that we could use our 2018/19 recovery rate for 2019/20 and 2020/21. This led to a refund of £16,500 from VAT paid in 2019/20, a refund of £27,700 of the 2019/20 capital good scheme payment and a reduction of £27,200 for the VAT due in 2020/21. These adjustments were made in the August 2021 VAT return.

We did not make use of the government’s Covid furlough scheme in 2020/21.

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WESLEY HOUSE, CAMBRIDGE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Financial review

Review of financial position

2020/21 ended with a surplus of £312,629 but behind this are two significant events. The first is oneoff income of £411,379 which is the result of a generous legacy from Mrs Lucy Rogers to fund a scholarship in her husband's memory and the other was expenditure of £548,980 to complete the refurbishment of 31 and 32 Jesus Lane of which £239,759 was funded from previous grants. The refurbishment finished in February 2021 and completes the project of refurbishment and new building that followed the sale and leaseback of the premises in 2014. Details of the financial effect of COVID 19 in 2020/21 are detailed throughout this report.

Principal funding sources in the year

During the year our income came from the following sources:

Because of Covid restriction there was no Conferencing and events income in the year.

Donations policy

Donations are managed in accordance with the donations policy and bursary fund policy agreed on 7th February 2018, as detailed below:

Bursary fund policy

The Wesley House Bursary Fund exists to support the scholarship of Methodist students in need of financial assistance, support a viable residential community in Cambridge, and support the academic and community life of the college.

There are three uses of this fund:

  1. To support non-resident students on the basis of need and contribution to the college’s life.

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DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE

TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Bursaries are given to non-resident students at the discretion of the Wesley House Academic Committee, normally up to a value of £1500 per year. Through our non-resident student bursaries, we seek to assist students financially where there is real need, and also to enhance the community and academic life of the College. It is our expectation that nonresident students in receipt of bursary assistance will actively contribute to the life and work of Wesley House as students, in their ministry, and through their academic work.

  1. To attract and support residential research students to study in the areas of Global Wesleyan Theology, Leadership and Ministry Development and Faith in Public Life, or within the research specialisms of one of our first supervisors.

The college is committed to a global residential community of prayer and scholarship and uses its bursary funds to help attract and support research students who would value and add value to community life and who without significant financial assistance would not be able to access such an opportunity. Normally bursaries are offered on the basis of matched funding. Exceptionally, a full bursary may be offered (where it is judged that the applicant, through their proposed course of study, will make a particularly significant contribution to Wesley House’s strategic objectives). Bursaries are offered initially on the basis of a fixed period of study that matches the intended duration of the course of study and will be subject to admission by the relevant university. Bursaries for resident students will normally be agreed to cover the expected duration of their course of study. Continued payment of a bursary will depend on satisfactory academic progression as determined by the validating university, and appropriate behaviour and community engagement as a residential student.

  1. Scholarships of up to £2000 per year are available to resident students at the discretion of the Trustees in return for help supporting essential community functions such as Chapel, Library and Hospitality.

Any bursaries and scholarships awarded will be made to students of Wesley House and not to their dependents or families.

Reserves policy

The Trustees have decided that any funds which have not yet been committed or designated for any particular purpose will be held in its unrestricted funds so that they are available if the charity's expenditure exceeds its income over the forthcoming years whilst the new business plan is developed. The Trustees have established a policy whereby unrestricted funds held by the Charity should cover at least three months of support costs which for the year ended 31 August 2021 was £91,885. Unrestricted funds at year end were £10,796,431 of which £271,152 were free reserves. Total reserves including restricted funds are £11,405,871.

Going concern

The Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for at least twelve months from the date of this report.

The lease from Jesus College has a provision for determining the lease at Wesley House's instigation and an agreed compensation formula. This provides the Trustees with comfort that as a last resort there is a mechanism for releasing significant funds should they be needed.

18

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

For these reasons the Trustees continue to adopt the going concern basis in preparing the financial statements.

Wesley House does not have any funds or subsidiaries that are in deficit.

Financial effect of significant events

The financial impact of Covid was a loss of about £50,000 in 2020/21.

Investment policy

In accordance with the Articles of Association, the Trustees have the power to invest in such stocks, shares, investments and property as they see fit. Wesley House does not have any funds invested.

Principal risks and uncertainties

During the year the Finance and General Purposes Committee and full body of Trustees have regularly reviewed and revised our risk registers, identifying as many of the significant risks to the charity as possible and strategies to manage those risks.

One of the highest risks in the year was infection from COVID-19 and of future lockdowns. We were fortunate that none of the students, staff or residents had Covid during the year. Plans to manage the risk for the community and as a workplace were implemented and revised as the situation changed and continues into 2021/22.

Medium level risks identified included not meeting fundraising targets, the effect of not having a sufficiently large bursary fund, staff retention, the viability of the Federation and its member organisations, the Federation's UKVI status, overspending on 31/32 Jesus Lane, cyber security, student recruitment, and the need to find successor projects to start when the African projects complete. The Trustees took action to address these and other risks throughout the year.

As part of risk management the Trustees continually considered the college’s long term sustainability and scrutinised the business plan and the strategies in place to safeguard the company’s future.

Risks to the health and safety of staff, students, residents and visitors were managed throughout the year. There were no significant health and safety incidents in the year.

19

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Any factors likely to affect future financial performance

The main factor likely to affect future financial performance is the Covid-19 pandemic. The Trustees consider that the resilience shown in the year and the number of distance learning students places this as a medium level risk to future financial performance.

Plans for future periods

Plans for the future including aims and objectives and activities planned to achieve them

Students

We have 57 Wesley House students on programmes accredited through the Cambridge Theological Federation in 2021/22. This is forecast to rise to a peak of 81 in 2024/25 as our Kenyan cohorts join us, and returning to 60 by 2029/30.

We plan to continue our partnership with Wesley Theological Seminary, Washington DC, USA to host two DMin cohorts each visiting twice a year from 2021/22 onwards. Teaching in January 2022, for the final session of Track D and the first session of Track E. had to be moved online. We look forward to welcoming Track E in person in June 2022. Track F starts in March 2023.

Staff

There is planned recruitment during 2021/22 for two permanent members of staff to replace the Interim Director of Global Wesleyan Theology, Dr Paul Chilcote, and the Interim Director of Doctoral Pathways, Dr Helen Cameron. In January 2022 we were pleased to welcome Dr Medi Volpe as the Director of Research and we are grateful that Dr Cameron is remaining with us as a Research Fellow.

Africa University

Wesley House will continue to deliver its partnership with Africa University which is a five year project from 2019 to 2023. This funded by the GBHEM with a grant of $1.4m, of which $892,706 (£703k) is income to Wesley House with the remainder paid directly to Africa University.

Kenya Methodist University

Wesley House will continue to deliver its partnership with Kenya Methodist University which is an eight year project from 2019 to 2027. This is funded by the World Church Relations office of the MCB with a grant of £1,623,000 which is all payable to Wesley House who will pass on £479,000 to Kenya Methodist University.

Pastoral Supervision

We plan to continue to run Wesley House’s Certificate and Diploma courses in Pastoral Supervision throughout the year and in summer vacations using a mixture of online and face to face courses. We also plan to continue supporting the roll out of Supervision in the United Methodist Church in the USA through course development and oversight, and training.

Wesley House Foundation

The Wesley House Foundation was formed in the USA during 2019/20. Recruitment to its board started with the appointment of Jake Schrum as its Chair. Two further board members were identified but the process was put on hold when Covid arrived in the USA. After the pandemic has subsided the Foundation plans to recruit a full board and to visit Wesley House to meet staff and

20

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE

TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

students. The Foundation will be a vehicle for fundraising in the USA and has 501(c)(3) status for tax-efficient giving.

LeAD Hub

We expect to continue our work as a LeAD Hub for GBHEM.

Centenary

2021 is the College’s centenary year. This is being celebrated with a series of events and a fund raising appeal. Details are on our centenary website at www.wesleyhouse100.com.

Trustees' perspective of the future direction of the charity

In common with all higher educational institutions, the Trustees are considering the long term impact of Covid on the sector and ways of teaching of learning. During the year the Trustees started a process of reviewing the College’s business plan and considered various different scenarios for operating differently. The review is ongoing but the Trustees affirmed their support for the current strategy and activity and are planning to maintain the current direction of the charity, strengthening its resilience wherever possible.

21

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE TRUSTEES' ANNUAL REPORT (Incorporating the Directors' Report) FOR THE YEAR ENDED 31 AUGUST 2021

Trustees’ Responsibilities Statement

The trustees, who are also directors for the purposes of company law, 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 charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

Each of the persons who is a trustee at the date of approval of this report confirms that:

The trustees' annual report and the strategic report were approved on 7th February 2022 and signed on behalf of the board of trustees by:

………………………………….. 228B306B25D74AC... The Revd Dr Stuart Jordan Trustee

…………………………………… E134AC61C37641B... Dr Paul Ashley Trustee

22

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE INDEPENDENT AUDITORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

Opinion

We have audited the financial statements of Wesley House (the charitable company) for the year ended 31 August 2021 which comprise the statement of financial activities (including income and expenditure account), the balance sheet, statement of cash flows and the related notes, 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 (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 August 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 trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company'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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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.

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DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE INDEPENDENT AUDITORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

Other information (continued)

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:

Matters on which we are to required to report by exception

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

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

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes 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 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 company or to cease operations, or have no realistic alternative but to do so.

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DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE INDEPENDENT AUDITORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We 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 trustes (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.

25

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE INDEPENDENT AUDITORS’ REPORT FOR THE YEAR ENDED 31 AUGUST 2021

Use of our report

This report is made solely to the 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 charitable company’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the 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 and Statutory Auditors Beech House 4a Newmarket Road Cambridge, CB5 8DT

07 March 2022 Date:

26

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE STATEMENT OF FINANCIAL ACTIVITIES (incorporating the income and expenditure account) FOR THE YEAR ENDED 31 AUGUST 2021

Note
Income and endowments
Donations and legacies
4
Charitable activities
Other trading activities
Investment income
5
Total Income
Expenditure
Charitable activities
6
Trading activities
6
Total expenditure
Net gain on investment
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
113,517
588,911
3,201
2,289
707,918
777,824
24,364
802,189
-
(94,271)
239,759
145,488
10,650,943
10,796,431		 Restricted
Funds
£
428,359
-
-
-
428,359
21,459
21,459
-
406,900
(239,759)
167,141
442,299
609,440
2021		 Total
Funds
£
541,876
588,911
3,201
2,289
1,136,277
799,284
24,364
823,648
-
312,629
-
312,629
11,093,242
11,405,871		 2020
Total
Funds
£
575,040
624,910
16,059
1,788
1,217,797
727,684
40,789
768,473
-
449,324
-
449,324
10,643,918
11,093,242

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

27

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE BALANCE SHEET AS AT 31 AUGUST 2021

REGISTERED NUMBER: 09147032

Note 2021 2020
£ £
FIXED ASSETS
Tangible fixed assets 11 10,525,279 10,083,937
Total fixed assets 10,525,279 10,083,937
CURRENT ASSETS
Trade and other debtors 12 152,129 48,848
Cash at bank and in hand 1,100,605 1,377,888
1,252,734 1,426,736
CREDITORS: amounts falling due within one year 13 (103,809) (129,098)
NET CURRENT ASSETS 1,148,925 1,297,638
CREDITORS: amounts falling due after one year 14 (268,333) (288,333)
TOTAL ASSETS LESS CURRENT LIABILITIES 11,405,871 11,093,242
NET ASSETS 11,405,871 11,093,242
RESERVES
Restricted Funds 609,440 442,299
Unrestricted Funds 10,796,431 10,650,943
TOTAL FUNDS 15 11,405,871 11,093,242

The financial statements of Wesley House, Cambridge were approved by the Board of Trustees and authorised for issue on 7 February 2022 and signed on its behalf by

………………………………….. 228B306B25D74AC... ………………………………… E134AC61C37641B... The Revd Dr Stuart Jordan Dr Paul Ashley Trustee Trustee

28

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2021

Cash flows from operating activities
Net income/(expenditure)
Adjustments for:
Depreciation of tangible fixed assets
Other interest receivable and similar income
Net gains on investments
Changes in:
Trade and other debtors
Trade and other creditors
Net cash generated by/(used in) operating activities
Cash flows from investing activities
Interest received
Purchase of tangible assets
Proceeds from sale of other investments
Net cash generated (used in)/by investing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
312,629
127,124
(2,289)
-
(103,281)
(45,289)
288,894
2,289
(568,466)
-
(566,177)
(277,283)
1,377,888
1,100,605		 2020
£
449,324
109,911
(1,788)
-
(10,382)
274,398
821,463
1,788
(310,801)
-
(309,013)
512,450
865,438
1,377,888

29

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. General Information

The charity is a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Wesley House, Jesus Lane, Cambridge, CB5 8BJ.

A separate income and expenditure summary has not been produced as it is not considered necessary to do so.

Wesley House, Cambridge meets the definition of a public benefit entity under FRS 102.

The members of the company are the Trustees named on page 3. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic 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 Republic of Ireland (FRS 102) (Charities SORP (FRS 102)) and the Charities Act 2011.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered the potential impact on the company of the current global pandemic known as COVID-19. In the opinion of the directors there will be no material adverse effect on the company's ability to continue. The directors believe the company is well placed to manage its business risks successfully despite the current uncertain economic outlook.

The lease from Jesus College has a provision for determining the lease at Wesley House's instigation and an agreed compensation formula. This provides the Trustees with comfort that as a last resort there is a mechanism for releasing significant funds should they be needed.

For these reasons the Trustees continue to adopt the going concern basis in preparing the financial statements.

30

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

3. Accounting policies (continued)

Judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.

Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.

Income

All income is included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:

31

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

3. Accounting policies (continued)

Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:

All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.

Tangible Assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Long leasehold property - Depreciated over the length of the lease

Fixtures and fittings - 10% straight line

Equipment - 20% - 25% Straight line

32

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

3. Accounting policies (continued)

Impairment of Fixed Assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Defined Contribution Plans

The charitable company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to income and expenditure in the period to which they relate.

Financial instruments

Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

33

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

4. DONATIONS AND LEGACIES

Donations
Bursary Income
Online Course
31/32 Jesus Lane
Mrs Lucy Rogers
Miscellaneous donations
5. INVESTMENT INCOME
Bank interest receivable
6. EXPENDITURE BY ACTIVITY TYPE
Charitable Activities
Theological & Training
Trading Activities
Accommodation		 Unrestricted
Funds
£
-
-
-
-
113,517
113,517
Unrestricted
Funds
£
2,289
2,289
Activities
undertaken
directly
2021
£
456,107
-
456,107		 Restricted
Funds
£
11,980
-
5,000
411,379
-
428,359
Restricted
Funds
£
-
-
Support
Costs
2021
£
343,177
24,364
367,541		 Total Funds
2021
£
11,980
-
5,000
411,379
113,517
541,876
Total Funds
2021
£
2,289
2,289
Total
2021
£
799,284
24,364
823,648		 Total Funds
2020
£
7,310
1,000
534,301
-
32,429
575,040
Total Funds
2020
£
1,788
1,788
Total
2020
£
727,684
40,789
768,473

34

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

7. ANALYSIS OF SUPPORT COSTS

Support staff costs
Premises
General Office
Governance costs
NET (EXPENDITURE)/INCOME
Net (expenditure)/income is stated after charging:
Depreciation of tangible fixed assets
Auditors' remuneration
Pension costs		 Total
2021
£
98,421
205,250
57,355
6,515
367,541
2021
£
127,124
4,600
5,648		 Total
2020
£
101,759
222,779
42,711
6,256
373,505
2020
£
109,911
4,600
2,400

8. NET (EXPENDITURE)/INCOME

9. STAFF COSTS

Wages
Social security
Pension
Total		 2021
£
168,361
14,201
5,648
188,210		 2020
£
107,857
9,649
2,400
119,906

The average number of staff in the year was 6 (2020: 5)

No employee received employee benefits of more than £60,000 during the year (2020: £nil)

Key management personnel

During the year remuneration received by key management personnel totalled £124,670 (2020 £100,114).

10. TRUSTEES' REMUNERATION AND EXPENSES

The trustees received no remuneration (2020: £nil) during the year.

During the period, no Trustees received reimbursement of expenses (2020: £nil) in connection with their service.

During the year donations of £23,140 (2020: £5,220) were received from Trustees.

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DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

11. TANGIBLE FIXED ASSETS

Long
leasehold
Fixture and
property
fittings
Equipment
£
£
£
Cost
At 1 September 2020
9,029,179
1,494,176
20,127
Additions
567,255
-
1,211
Disposals
-
-
-
At 31 August 2021
9,596,434
1,494,176
21,338
Depreciation
At 1 September 2020
255,739
183,679
20,127
Charge for the year
93,904
32,917
303
At 31 August 2021
349,643
216,596
20,430
Net book value
At 31 August 2021
9,246,791
1,277,580
908
At 31 August 2020
8,773,440
1,310,497
-
12. DEBTORS
2021
£
Trade debtors
27,109
Prepayments and accrued income
43,676
Other debtors
81,344
152,129
13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021
£
Trade creditors
39,862
Accruals and deferred income
52,056
Social security and other taxes
5,466
Pension contributions
250
Other creditors
6,175
103,809
Included in Accruals and deferred income above is the following deferred income:
As at 1 September 2020
Deferred income recognised in the year
Resources deferred during the year
At 31 August 2021		 Total
£
10,543,482
568,466
-
11,111,948
459,545
127,124
586,669
10,525,279
10,083,937
2020
£
23,257
23,748
1,843
48,848
2020
£
4,966
115,945
2,698
-
5,489
129,098
£
17,372
(17,372)
24,575
24,575

Deferred income represents income received for conference room hire and rent received from IOCS.

36

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

14. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR

CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR
Accruals and deferred income 2021
£
268,333
268,333		 2020
£
288,333
288,333

Deferred income represents income received in advance for rent and service charges from IOCS.

15. ANALYSIS OF CHARITABLE FUNDS

Unrestricted funds

Unrestricted funds
General Funds
Restricted Funds
Bursary Fund
Paul Jeffries Fund
Roberts Library Fund
Rev E Peake
Finch Scholarship
Sanders Library Bequest
Online Course
31/32 Jesus Lane
John Stanfield Memorial Fund
Burton Harry Copeman fund
Weatherhead, Jones, and Davison
Reverend Edward Rogers
Scholarship in Christian Ethics		 At
1 September
2020
£
10,650,943
At
1 September
2020
£
54,507
2,523
69,638
12,594
400
7,086
42,930
5,703
8,220
1,000
237,698
-
442,299		 Income
£
707,918		 Expenditure
£
(802,189)
Expenditure
£
(2,006)
-
(14,294)
-
-
(470)
-
-
(750)
(1,000)
(2,939)
-
(21,459)		 Transfers
£
239,759
Transfers
£
(239,759)
(239,759)		 Gains &
losses
£
-
Gains &
losses
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 At 31 August
2021
£
10,796,431
Income
£
11,980
-
-
-
-
-
-
-
-
-
5,000
411,379		 At 31 August
2021
£
64,481
2,523
55,344
12,594
400
6,616
42,930
5,703
7,470
-
-
411,379
428,359 609,440

Bursary fund

The Bursary Fund was set up to provide assistance to students in case of need.

Paul Jeffries fund

The Paul Jeffries Scholarship (of up to £3,000) is offered at the discretion of the Trustees to any student from Chung Chi College, Hong Kong of sufficient academic calibre who applies to study at Wesley House either on one of its formal programmes or as an independent research student.

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DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

15. ANALYSIS OF CHARITABLE FUNDS (continued)

John Stanfield Memorial fund

The Stanfield Memorial Fund was established by Rev John E Stanfield, Dr Lorna C Barrie and Lady (Audrey) Wood together with their children and grandchildren, as a permanent memorial to their parents, Rev John Howard Stanfield and Lillian May Stanfield. The memorial fund supported the building of the Gatehouse, including a perching bench carved with a quote from John Wesley "I look upon the whole world as my parish". The family's global ministry, stretching from 1874 to 1997, reflects this. The remaining funds have been donated to the College's Bursary Fund to be used at the Trustees' discretion in support of its aims as an International College.

Roberts Library Fund

The Roberts Library fund was created from a legacy from Mrs Myra Stevenson Roberts in 1984 and is for the purpose of purchasing books for the library.

Burton Harry Copeman fund (Ward Prize)

A cash prize of £200 awarded for academic contribution to the college by a first year student.

Weatherhead, Jones, and Davison Prize

At a meeting of Trustees on 16th November 2017 the Trustees agreed proposals from the Academic Committee to consolidate the Weatherhead, Jones and Davison prizes into one prize fund to be used for:

1) An annual prize in books up to a value of £750 for a student receiving first class in a taught award; and 2) An annual prize in books up to a value of £750 for academic excellence/impact in a conference paper or published paper.

Peak Fund

To assist students unable to buy books. A one-time book grant of £250 per student, awarded in cases of real need.

Sanders Library Bequest

A bequest for the income to be applied for library books.

John Finch Scholarship

The John Finch scholarship was created to provide travelling scholarships to be known as "John Finch Scholarships" for candidates for the Ministry of the Methodist Church undergoing training at Wesley College as students for such Ministry or having completed their training at Wesley College not more than one year before being awarded a scholarship. Mr Finch created and contributed to the fund in his lifetime and left £5,000 in his will in 1944, the income from which is to be applied to the scholarships.

The terms of the will were that "the said travelling scholarships shall be scholarships for furthering the education of the said students or past students to whom they are awarded by enlarging their vision amplifying their knowledge and extending their experience to the intent that they become the better fitted to discharge their duties as Ministers of the Methodist Church when appointed as such."

On line Course

£1,000 was received in 2020 from The Gibbs Trust towards the production of an online course to run in 2021 featuring the work of the artist James Smetham and other painters.

31/32 Jesus Lane

Monies given to refurbish 31/32 Jesus Lane.

The transfer of £239,759 represents the capitalisation of the building works for 31/32 Jesus Lane during the year to 31 August 2021.

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DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

15. ANALYSIS OF CHARITABLE FUNDS (continued)

Reverend Edward Rogers Scholarship in Christian Ethics

This fund was created to endow scholarships in the field of Christian Social Ethics with a legacy from Mrs Lucy Rogers.

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible fixed assets
Net Current assets
Creditors due after one year
Net assets		 Unrestricted
Funds
£
10,525,279
539,485
(268,333)
10,796,431		 Restricted
Total
Funds
Funds
£
£
-
10,525,279
609,440
1,148,925
(268,333)
609,440
11,405,871

17. OPERATING LEASE COMMITMENTS

The College has a 120 year operating lease agreement with Jesus College, Cambridge for the premises at a peppercorn rent from 1st September 2014 to 31st August 2134. The amount of the peppercorn rent was not specified in the contract but was understood to mean £nil and £nil rent is currently charged.

At the end of the 120 year period the premises remain the property of Jesus College, Cambridge and there is no option for Wesley House, Cambridge to acquire the land and buildings that are currently rented. However, Wesley House, Cambridge can extend the arrangement for a further 15 years at the end of the term.

Wesley House, Cambridge can choose to terminate the agreement at any time within the 120 year lease period. If they choose to terminate the agreement they will be compensated by Jesus College, Cambridge. This compensation is calculated by reference to the insurance valuation of the building at the date of the lease termination dated adjusted for the proportion of the lease term which has already expired. Jesus College, Cambridge can only determine the lease if the building remains unoccupied by Wesley House, Cambridge for 18 months or if Wesley House, Cambridge fails to pay the lease payments (which, as outlined above, are set at £nil).

18. RELATED PARTIES

There are no related party transactions other than those in Note 10.

19. PENSION AND OTHER POST RETIREMENT BENEFITS

In September 2020 all ministerial posts at Wesley House were brought under the control of the Methodist Conference This meant that they were no longer employees of Wesley House and the responsibility for their pensions lay with the Methodist Church and Wesley House did not have any pension liability provisions due. This situation reversed in September 2021 and both ministerial staff based at Wesley House were no longer under the control of the Conference and became employees of Wesley House once again. One of the ministers involved retired from the Church at that point and no pension payments are being made on their behalf from 2021. A personal pension scheme was opened for the other minister. This is a defined contribution scheme and so no pension liabilties will be due, other than the monthly employer contributions.

39

DocuSign Envelope ID: B7F6163C-E17F-4A5C-B45E-1DA584269519

WESLEY HOUSE, CAMBRIDGE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

20. CONTINGENT LIABILITY

In February 2019 the Maurice and Hilda Laing Charitable Trust offered a grant of £374,301 towards the costs of refurbishing 31 and 32 Jesus Lane. The offer was conditional on giving the following undertaking:

In the event of Wesley House leaving the Federation, Wesley House undertakes to pay the Federation a sum determined as follows:

The monies thus paid to the Federation shall be used by the Federation to make loans or grants to Houses to promote the purposes of the Federation.

21. COMPARATIVE FOR THE STATEMENT OF FINANCIAL STATEMENTS

Note
Income and endowments
Donations and legacies
4
Charitable activities
Other trading activities
Investment income
5
Total Income
Expenditure
Charitable activities
6
Trading activities
6
Total expenditure
Net gain on investment
Net (expenditure)/income
Transfers between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward		 Unrestricted
Funds
£
32,429
624,910
16,059
1,788
675,186
625,981
40,789
666,770
-
8,416
293,888
302,304
10,348,639
10,650,943
2020		 Restricted
Funds
£
542,611
-
-
-
542,611
101,703
-
101,703
-
440,908
(293,888)
147,020
295,279
442,299		 Total
Funds
£
575,040
624,910
16,059
1,788
1,217,797
727,684
40,789
768,473
-
449,324
-
449,324
10,643,918
11,093,242

40