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2023-06-30-accounts

The Society of St Stephen's House

Annual report and

Financial Statements

For the year ended 30 June 2023

Charity Registration Number: 1177459 Company Registration Number: 11199178

The Society of St Stephen's House Annual Report and Financial Statements Contents

INDEX PAGE
Charity Information 3
Trustees' Report 4 - 6
Auditor's Report 7 - 8
Statement of Accounting Policies 9 – 10
Statement of Financial Activities 11
Balance sheet 12
Statement of Cash Flows 13
Notes to the Financial Statements 14 - 24

2

The Society of St Stephen's House Charity Information For the year ended 30 June 2023

The Society of St Stephen's House is a registered charity and a company limited by guarantee, incorporated on 12 February 2018 and registered as a charity on the 7 March 2018. The assets and liabilities of the unincorporated charily 309693 The Society of St Stephen's House, formed by an indenture dated 16 August 1876 and enrolled in the High Court of Justice (Chancery Division), were transferred to this new charity by deed of transfer on 1 July 2018. The previous charity 309693 is now a linked charity renumbered as 1177459-1.

Charity Registration Number: 1177459
Address: 16 Marston Street
Oxford
OX41JX
The House Council Trustees:
All Trustees are also Directors of the Limited Company
Chairman: The Rt Revd Dr Martin Warner * +
Vice Chairman: Mr John Booth +
Chairman of the Finance and
General Purposes Committee: The Revd Canon Paul Armstead *
+ Life Trustees The Rt Revd Jonathan Baker +
The Revd Charles Card-Reynolds – resigned 22 September 2023
The Revd Prebendary David Houlding - resigned 1 July 2023
Edward Dobson Esq
The Rt Worshipful Morag Ellis KC - appointed 8 March 2023
The Revd Canon Dr Robin Ward (Principal) (ex officio) *
The Revd Andreas Wenzel (Vice-Principal) - appointed 23 October 2023_(nominated by_
the Academic Staff) *
Ms Katie Harrison - appointed 8 March 2023
Mr Duncan Hegan – resigned 7 February 2023_(nominated by the Student_
Common Room)
The Revd Lucy Gardner – resigned 23 October 2023
Mr William Allen - appointed 7 February 2023_(nominated by the Student_
Common Room)
In attendance at the House
Council: The Revd Lucy Gardner
Mr Nicholas French (Bursar) *
The Revd Christopher Trundle_(appointed General Synod)_
Dr Lyanne Beckerson_(nominated by the Student Common Room)_
The Finance and General Members marked *
Purposes Committee:
Advisors:
Bank: Handelsbanken
Oxford West Way branch
Seacourt Tower, 2nd Floor
West Way
Botley
Oxford
OX2 0JJ
Solicitors Stone King
: 13 Queen Square
Bath
Avon
BA1 2HJ
Auditors: Wenn Townsend
30 St Giles
Oxford
OX13LE

3

The Society of St Stephen's House Trustees' Report For the year ended 30 June 2023

The Trustees present their Annual Report, incorporating their Directors' Report, for the year ended 30 June 2023 under the Charities Act 2011 and Companies Act 2006 together with the audited financial statements for the year.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable United Kingdom law and with United Kingdom Generally Accepted Accounting Practices.

Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the year and of its financial position at the end of the year. In preparing these the Trustees are required to:

The Trustees are responsible for keeping accounting records that disclose, with reasonable accuracy, the financial position of the charity at any time, and to enable them to ensure that the financial statements comply with charity law. 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.

REFERENCE AND ADMINISTRATIVE INFORMATION

The Charity was founded in 1876 and was previously registered with the Charity Commission under Charity number 309693. On 12 February 2018, The Society of St. Stephen's House incorporated as a private company limited by guarantee and registered as a charity on 7 March 2018. The assets and liabilities were transferred from the unincorporated charity to this limited company with effect from 1 July 2018. The House Council members at the date of this report and of those in office during the year, together with details of the senior staff and advisers of the Society, are set out on page 3 of this report.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Documents

The charity is governed by its Memorandum and Articles on incorporation on 12 February 2018 as amended on 18 June 2018 and 13 November 2018.

Governing Body

The House Council, comprising all the Trustees, is the Society's governing body. It includes a staff and a student representative and is supported by non-voting staff and student members at its meetings. The House Council determines the ongoing strategic direction of the Society and regulates its administration and the management of its finances and assets. It meets each term and is advised by the Finance and General Purposes sub-committee.

New members of the House Council are appointed according to the terms set out in the Charity's Constitution for the various categories of membership, after an appropriate audit of the governance skills required.

4

The Society of St Stephen's House Trustees' Report (Continued) For the year ended 30 June 2023

Recruitment and training of Trustees

The Trustees bi-annually review their role and way of conducting business at a two-day Residential. Individual Trustees take on specific responsibilities for the various areas of governance and compliance with the support of the Bursar. The Principal supports the Chairman regarding Trustee recruitment and House Council membership.

Remuneration of Trustees and Senior College Staff

The Trustees receive neither remuneration nor benefits from their Trusteeship of the Society. Those Trustees who are also employees of the Society receive remuneration for their work as employees of the Society. For Academic staff this is in accordance with 'Lichfield' Scale issued annually by the Finance Committee of the Ministry Division of the Church of England. For administrative staff, this is in accordance with the relevant pay scales adopted by the House Council from those set out by the University of Oxford.

Organisational Management

The Society is managed by the House Council. The House Council is also responsible for setting and reviewing the core policies of the Society. These policies include a Safeguarding Policy incorporating the principles of the House of Bishop's Policy for safeguarding children (Protecting All God's Children, 2010) and safeguarding adults in the Church of England (Promoting a Safe Church, 2006). During 2015-16 The Society's policies were also updated to incorporate the requirements and recommendations of the Government Prevent strategy. The Health and Safety Policy is advised upon by Peninsula, and updated annually.

The work of implementing most of its policies is carried out by the Finance and General Purposes Committee, which met seven times during the financial year. The day-to-day running of the Society is delegated to the Principal, supported by his staff.

OBJECTIVES AND ACTIVITIES

Charitable Objects and Aims, Activities and Objectives

The Society's object is to fulfil its educational aims as set down in the Memorandum and Articles, being "furthering the education and training of Graduates of the Universities of Oxford and Cambridge and others preparing for Mission Work abroad or for other Ministerial work in the Church of England or the Churches in communion with the Church of England and for such other purposes as may tend to aid or further this general object."

The House Council has considered the Charity Commission's guidance on public benefit and in keeping with its objects, the Society's aims for the public benefit are to train clergy for the Anglican Communion and to enable students to pursue graduate professional training and academic research in Education, Theological Studies and such related educational activities in the University of Oxford as are consonant with the Trust Deed.

ACHIEVEMENTS AND PERFORMANCE

The Society has furthered its charitable object this year as the educational home for 102 students. 13 ordinands for the Church of England and 13 post ordination candidates have studied in a variety of ways through undergraduate and graduate courses at the University of Oxford, programmes within St Stephen’s House, and the Common Award programme validated for the Church of England by the University of Durham.

22 students have undertaken a Postgraduate Certificate in Education, and the Society has welcomed 54 full-time and parttime and continuing students from the UK and overseas studying for higher degrees in theology, education, history, and oriental studies.

5

The Society of St Stephen's House Trustees' Report (Continued) For the year ended 30 June 2023

FINANCIAL REVIEW

The full details of the financial performance for the year are given in the Statement of Financial Activities (SOFA) and the net assets are set out on the Balance Sheet.

Net expenditure before gains / losses for the year is £308,627 (2022: £384,311) after a charge of £187,824 for buildings depreciation charge which is set against the revaluation reserve. Income from charitable activities increased by £231,083 (40.1%) compared with the prior year as set in Note 1 to the accounts. This reflects increases across all three headings of student fees, student residential and summer schools/conferences. As shown in Note 4 to the accounts, charitable expenditure has increased by £87,853, showing a 5.9% rise on the prior year.

Donation income in the year amounted to £178,204 (2022: £239,313). The Society is grateful to the generous support of all its donors, without whom the work of the Society could not continue.

Reserves policy

.

The reserves policy is to maintain unrestricted reserve at a level equivalent to at least three months’ operating costs. This policy is reviewed annually.

Unrestricted funds at 30 June 2023 amounted to £15,579,381 as shown in Note 13 to the accounts. However, the vast majority of these funds are tied up in tangible fixed assets and property investments (net of long term liabilities), with only £238,826 readily liquifiable at 30 June 2023 (Note 15). These readily liquifiable funds currently represent less than the target unrestricted reserve stated in the policy.

Risk management

The House Council, through the Finance and General Purposes Committee, keeps under review the major risks faced by the Society.

The risks are categorised under eight separate types with impact/probability scores for each one and a record kept of action either needed or taken to manage and mitigate these risks. The types of risk considered are in the areas of strategy, organisation, students, staff, buildings, financial control, information and IT provision, and provision of services.

At the operational level, risk assessments are used to manage the risks associated with all significant activities.

Investment policy, objectives and performance

The investment portfolio is overseen by the Finance and General Purposes committee. Funds are invested in M&G Charifund units and the investment property 23 James Street. No funds were invested nor released from M&G Charifund in the year. The value of investments held in M&G Charifund was £478,858 (2022 - £506,116).

FUTURE PLANS

The College has renegotiated its relationship with the University of Oxford following termination of the concession to use the Common Award, and has ceased to be a Permanent Private Hall of the University from 1 October 2023. Under the terms of the new agreement the College will continue to have the right to matriculate 20 students in theological subjects at the University of Oxford. The College continues to invest in extra-mural and non-resident study for students via the Edward King Centre for Pastoral Theology, and has entered a collaboration with the Royal School of Church Music to establish the Institute of Sacred Music, offering Common Award qualifications in liturgy and theology.

Approved by the House Council on 21 November 2023 and signed on its behalf by:

The Right Reverend Dr Martin Warner Bishop of Chichester Chairman of the Council

6

The Society of St Stephen's House Independent Auditor's Report to the Members of the Society of St Stephen's House For the year ended 30 June 2023

Opinion

We have audited the financial statements of The Society of St Stephen’s House (the ‘charitable company’) for the year ended 30 June 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows, and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 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 Trustees’ 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

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

7

The Society of St Stephen's House Independent Auditor's Report to the Members of the Society of St Stephen's House

For the year ended 30 June 2023

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 4, 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 charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor 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:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

Use of our report

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

Benjamin Hayes BSc FCA (Senior Statutory Auditor) For and on behalf of Wenn Townsend, Chartered Accountant, Statutory Auditor

Date:

8

The Society of St Stephen's House Statement of Accounting Policies For the year ended 30 June 2023

Charity information

The Society of St Stephen's House is a registered charity and a company limited by guarantee, incorporated on 12 February 2018 and registered as a charity on the 7 March 2018 (the assets and liabilities of the unincorporated charity The Society of St Stephen's House, formed by an indenture dated 16th August 1876 and enrolled in the High Court of Justice (Chancery Division), were transferred by deed of transfer on 1 July 2018).

For assets under a Charity Commission Scheme, The Society of St Stephen's House is now the sole Trustee of that scheme and the assets under the Scheme are now under the control of this charity and included in its accounts.

Basis of Preparation

The financial statements have been prepared in accordance with United Kingdom Accounting Standards, in particular 'FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland' (FRS 102) and in accordance with 'The Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with FRS 102' (The Charities SORP (FRS 102)).

The financial statements have been prepared on a going concern basis and on the historical cost basis. The principal accounting policies adopted are set out below and have been applied consistently throughout the year.

Going concern

The Trustees have a high expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. In making their assessment, the Trustees have considered the impact of relinquishing PPH status within the University of Oxford from 1 October 2023. They continue to believe the going concern basis of accounting to be appropriate in preparing the annual financial statements.

Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. Designated funds are unrestricted funds which have been either allocated or expended by the Trustees for a specified purpose.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donors or which have been raised by the charity for particular purposes. The nature of each restricted fund is set out in the notes to the accounts.

Fees and other income

Students' fees, rents and educational summer school income are accounted for in the period in which the service or facilities are provided.

Voluntary income

Donations and gifts are recognised on receipt by the charity. Legacies are recognised when there is reasonable assurance of their receipt and the amount is known. Amounts received for activities restricted by the wishes of the donor are held in restricted funds.

Resources expended

Resources expended are accounted for on an accruals basis. Overhead and other costs are allocated to relevant categories by management.

Governance costs comprise costs associated with constitutional and statutory requirements.

The irrecoverable element of VAT is included within administrative overheads.

Tangible fixed assets

Land is stated at cost. Buildings and equipment are stated at fair value. Items less than £500 are charged to the income and expenditure account as incurred.

Under FRS 102, the Society has elected to use the fair value of freehold properties as a 'deemed cost'. The valuation was undertaken by an independent firm of Chartered Surveyors on 27 July 2016 on the basis of open market value on existing use.

Finance costs incurred to fund the improvements to the property have been capitalised. The amount included in the cost of the freehold property is shown in the notes to the financial statements.

9

The Society of St Stephen's House Statement of Accounting Policies For the year ended 30 June 2023

Depreciation

Significant fixed assets are capitalised and depreciated over their estimated useful lives. The depreciation rates applied are as follows:

Freehold property 2% straight line Fixtures, fittings and equipment 5% - 33.33% straight line

Buildings associated with equity sharing loans (note 12) have been included at their undepreciated fair value.

Gifted assets

Gifts of significant fixed assets are capitalised and included in the appropriate fixed asset category. The value of such assets is included in income in the period in which the gift is received.

Investments

Listed investments are valued at the middle of the bid and offer price but if only one of these is available then that price is used. Unrealised gains or losses as shown in the Statement of Financial Activities are credited or debited to the relevant fund. Income from investments is recognised when the charity becomes entitled to it. Current asset investments are held for the short term and may be realised should the need arise.

Investment properties are stated at the market value at the balance sheet date. The Statement of Financial Activities shows net investment gains and losses arising from revaluation of the investment portfolio and disposals throughout the year.

Pension schemes

The Society participates in the Church of England Funded Pension Scheme and the Church of England Defined Benefits Scheme, part of the Church Workers Pension Fund.

The costs of retirement benefits provided to employees of the Society through the multi-employer defined pension schemes are accounted for as if these were defined contribution schemes as information is not available to use defined benefit accounting in accordance with the requirements of FRS 102. The Society's contributions to these schemes are recognised as a liability and an expense in the period in which the salaries to which the contributions relate are payable.

In addition, a liability is recognised at the balance sheet date for the discounted value of the expected future contribution payments under the agreements with these multi-employer schemes to fund the past service deficits.

The Society also participates in the University of Oxford Staff Pension Scheme. These schemes are hybrid pension schemes, providing defined benefits (for members), as well as defined contribution benefits.

The assets of the schemes are each held in a separate trustee-administered fund. Because of the mutual nature of the schemes, the assets are not attributed to individual Colleges and scheme-wide contribution rates are set. The Society is therefore exposed to actuarial risks associated with other Universities and College employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis.

As required by Section 28 of FRS 102 "Employee benefits", the Society therefore accounts for the schemes as if they were wholly defined contribution schemes. As a result, the amount charged to the profit and loss account represents the contributions payable to each scheme. Since the Society has entered into agreements (the Recovery Plans) that determine how each employer within the schemes will fund the overall deficit, the Society recognises a liability for the contributions payable that arise from the agreements (to the extent that they relate to the deficit) and therefore an expense is recognised.

10

The Society of St Stephen's House Statement of Financial Activities

(including income and expenditure account) For the year ended 30 June 2023

Notes
INCOME AND ENDOWMENTS FROM:
Charitable activities:
Teaching, research and residential
1
Donations and legacies
2
Investments
Investment income
3
Other income
Concert and other event income
Other rents
Other income
Total income
EXPENDITURE ON:
Charitable activities:
Teaching, research and residential
4
Generating funds:
Fundraising
4
Other expenditure
4
Total Expenditure
4
Net Income/(Expenditure) before gains
Net gains/(losses) on investments
9
Net Income/(Expenditure)
Transfers between funds
13
Other recognised gains/losses
Gains/(losses) on revaluation of fixed assets
Actuarial gains/(losses) on defined benefit pension schemes
Net movement in funds for the year
Fund balances brought forward as previously stated
13
Prior year adjustment
23
Funds carried forward at 31 July
13		 Unrestricted
Funds
£
806,330
138,204
34,822
129,151
278,014
3,954		 Restricted
Funds
£
-
40,000
-
-
-
-
40,000
69,818
-
69,818
(29,818)
-
(29,818)
-
-
-
(29,818)
325,047
-
295,229		 2023
Total
£
806,330
178,204
34,822
129,151
278,014
3,954		 2022
Total
£
As restated
575,247
239,315
26,269
138,637
259,822
-
1,390,475
1,511,399
19,596
111,031		 1,430,475
1,581,217
19,596
111,031		 1,239,290
1,493,364
22,559
91,801
1,642,026 1,711,844 1,607,724
(251,551) (281,369) (368,434)
(27,258) (27,258) (15,877)
(278,809) (308,627) (384,311)
-
-
97,774		 -
-
97,774		 -
5,370
101,928
(181,035)
15,556,560
203,856		 (210,853)
15,881,607
203,856		 (277,013)
16,362,476
-
15,579,381 15,874,610 16,085,463

11

The Society of St Stephen's House Balance Sheet As at 30 June 2023

Notes
FIXED ASSETS
Tangible assets
7
Property investments
8
Other Investments
9
Total Fixed Assets
CURRENT ASSETS
Stocks
Debtors
10
Cash at bank and in hand
Total Current Assets
LIABILITIES
Creditors: Amounts falling due within one year
11
NET CURRENT ASSETS/(LIABILITIES)
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS: falling due after more than one year
12
Defined benefit pension scheme liability
18
TOTAL NET ASSETS/(LIABILITIES)
FUNDS OF THE COLLEGE
13
Restricted funds
Unrestricted funds
Designated funds
General funds
Revaluation reserve
Pension reserve
18
NET ASSETS/(LIABILITIES) BEFORE PENSION ASSET OR LIABILITY		 2023
£
17,200,853
994,252
478,858		 2022
£
As restated
17,425,093
994,252
506,116
18,673,963 18,925,461
1,438
187,736
417,896		 2,536
180,864
436,615
607,070
(551,873)		 620,015
(507,689)
55,197
18,729,160
(2,852,603)		 112,326
19,037,787
(2,852,603)
15,876,557
(1,947)		 16,185,184
(99,721)
15,874,610 16,085,463
295,229
1,166,147
2,830,111
11,581,176
1,947		 325,047
1,166,147
2,924,990
11,769,000
(99,721)
15,874,610 16,085,463

The financial statements were approved and authorised for issue by the House Council of The Society of St Stephen's House on 21 November 2023

The Right Reverend Dr Martin Warner Bishop of Chichester Chairman of the Council

12

The Society of St Stephen's House Consolidated Statement of Cash Flows For the year ended 30 June 2023

Notes
Net cash (used in) operating activities
19
Cash flows from investing activities
Dividends, interest and rents from investments
Purchase of property, plant and equipment
Net cash provided by (used in) investing activities
Change in cash and cash equivalents in the reporting period
20
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the reporting
period
Change in cash and cash equivalents due to exchange rate
movements		 2023
£
(49,754)		 2022
£
As restated
(77,357)
34,822
(3,787)		 26,269
(41,185)
31,035 (14,916)
(18,719) (92,273)
436,615
-		 528,891
-
417,896 436,615

13

The Society of St Stephen's House Notes to the financial statements

For the year ended 30 June 2023

1 INCOME FROM CHARITABLE ACTIVITIES

Teaching, Research and Residential
Unrestricted funds
Student fees
Student residential
Summer schools/conferences
Total Teaching, Research and Residential
2
DONATIONS AND LEGACIES
Donations and Legacies
Unrestricted funds
Restricted funds
3
INVESTMENT INCOME
Investment income
Unrestricted funds
Restricted funds
4
ANALYSIS OF EXPENDITURE
Charitable expenditure
Teaching, research and residential:
Academic, premises, catering and other direct costs
Domestic administration costs
Depreciation
Property loan interest and loan break costs
Governance costs
Note 5
Total charitable expenditure
Expenditure on raising funds
Fundraising
Other costs of generating funds:
Other rental costs
Concert and other event costs
Total expenditure on raising funds
Total expenditure		 2023
£
326,771
376,819
102,740
806,330
2023
£
138,204
40,000
178,204
2023
£
34,822
-
34,822
2023
£
1,097,136
224,074
228,027
23,320
8,660
1,581,217
19,596
-
111,031
130,627
1,711,844		 2022
£
281,423
290,938
2,886
575,247
2022
£
200,315
39,000
239,315
2022
£
26,269
-
26,269
2022
£
980,314
227,075
259,133
18,782
8,060
1,493,364
22,559
14,979
76,822
114,360
1,607,724

Total expenditure

5 AUDITOR'S REMUNERATION

Governance costs:

Auditor's remuneration - audit services Auditor's remuneration - year end accounting services

Included within Domestic administration costs in Note 4: Auditor's remuneration - other accounting services

Note 4 2023
£
5,660
3,000
8,660
23,000
31,660		 2022
£
4,700
3,360
8,060
-
8,060

14

The Society of St Stephen's House Notes to the financial statements For the year ended 30 June 2023

The aggregate staff costs for the year were as follows.
Salaries and wages
Social security costs
Pension contributions
Pension deficit repayments
The average number of employees of the College, excluding Trustees,
was as follows.
Total		 2023
£
463,351
38,659
80,500
-
582,510
2023
22		 2022
£
514,523
41,033
116,322
3,600
675,478
2022
22

No employee earned over £60,000 in the year.

7 TANGIBLE FIXED ASSETS

Cost or valuation
At start of year
Additions
Brought forward analysis adjustment
At end of year
Depreciation and impairment
At start of year
Charge for the year
Brought forward analysis adjustment
At end of year
Net book value
At end of year
At start of year		 Freehold
land and
buildings
£
18,798,683
-
81,088
18,879,771
1,589,438
187,824
81,088
1,858,350
17,021,421
17,209,245		 Fixtures,
fittings and
equipment
£
790,395
3,787
-
794,182
574,547
40,203
-
614,750
179,432
215,848		 Total
£
19,589,078
3,787
81,088
19,673,953
2,163,985
228,027
81,088
2,473,100
17,200,853
17,425,093

On 27 July 2016, external valuers, Carter Jonas, Chartered Surveyors and Property Consultants, valued the freehold property at £18,817,000.

Their valuation was prepared in accordance with the R.I.C.S. Appraisal and Valuation Standards. For accounting purposes, the valuation was not deemed to be materially different to the value as at 30 June 2014, and hence was used to restate cost as at that date.

The historical cost of freehold land and buildings as at 30 June 2023 is £5,069,113. Annual depreciation on a historical cost basis would be £101,000.

The cost of freehold land and buildings includes finance costs capitalised of £62,850.

Buildings associated with equity sharing loans (note 12) have been included at their undepreciated fair value.

8 PROPERTY INVESTMENTS

Valuation at start of year
Revaluation gains/(losses) in the year
Valuation at end of year		 2023
Total
£
994,252
-
994,252		 2022
Total
£
994,252
-
994,252

15

The Society of St Stephen's House Notes to the financial statements For the year ended 30 June 2023

9 OTHER INVESTMENTS

All investments are held at fair value.

Fixed asset investments
Valuation at start of year
(Decrease) in value of investments
Fixed asset investments at end of year
The investments represent units held in an UK equities fund.
DEBTORS
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
Other debtors
CREDITORS: falling due within one year
Trade creditors
Taxation and social security
Other creditors		 2023
£
506,116
(27,258)
478,858
2023
£
123,934
34,671
29,131
187,736
2023
£
335,217
9,721
206,935
551,873		 2022
£
521,992
(15,876)
506,116
2022
£
139,568
-
41,296
180,864
2022
£
254,671
14,304
238,714
507,689

10 DEBTORS

Church Commissioners Equity Sharing Loan
ACOCF loan
Bank loans		 2023
£
1,222,724
1,129,879
500,000
2,852,603		 2022
£
1,222,724
1,129,879
500,000
2,852,603

An equity sharing loan of £187,000 was advanced by the Church Commissioners to fund 95.6% of the purchase of 36 James Street, Oxford. (The initial interest rate was 3% and moves annually in line with RPI.) The amount repayable upon the sale of the property is the greater of £167,000 and 95.6% of the sale value. The market value of the property is £1,279,000 and hence the fair value of the loan is £1,222,724. The fair value of the loan, where greater than £167,000, is therefore by definition at all times fully offset by the associated asset and does not affect the net asset value of the Society.

The ACOCF loan is a long term loan of £67,191, at a rate of 0.1% interest per annum secured on part of the property at 16 Marston Street, Oxford. On repayment, there is an additional equity share element to repay, being 33.6% of any increase in the value of the asset. This agreement was incorporated into a legal change in the current financial year and hence the loan has not been included in the financial accounts at the fair value of £1,129,879. The value of the associated asset has also been included at undepreciated fair value.

The Handelsbanken bank loan, at a fixed rate of 2.23% interest per annum, was taken out in December 2020 to fund the re-finance of 23 James Street, Oxford. The loan repayment date has been renegotiated for an additional year, to fall due on 7 December 2024.

16

The Society of St Stephen's House Notes to the financial statements For the year ended 30 June 2023

13 ANALYSIS OF MOVEMENTS ON FUNDS

ANALYSIS OF MOVEMENTS ON FUNDS
Restricted Funds
Community of The Servants of the Cross
M Ramsey Fund
The Organ Fund
The Armorial Fund
The Pye Settlement
Summer School Fund
USA - St Stephen's House 'In Residence'
USA - Fund for Study Leave
USA - Fund for Graduate Studentships
The Edward King Centre
Academic stipend
Total Restricted Funds
Unrestricted Funds
Designated funds
General funds
Revaluation reserve
Pension reserve
Total Unrestricted Funds
Total Funds		 At 1 August
2022
£
As restated
168,384
3,988
32,175
10,100
7,000
6,426
13,000
15,000
41,156
27,818
-		 Incoming
resources
£
-
-
-
-
-
-
-
-
-
-
40,000		 Resources
expended
£
-
-
-
-
(2,000)
-
-
-
-
(27,818)
(40,000)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-		 Gains/
(losses)
£
-
-
-
-
-
-
-
-
-
-
-		 At 31 July
2023
£
168,384
3,988
32,175
10,100
5,000
6,426
13,000
15,000
41,156
-
-
325,047 40,000 (69,818) - - 295,229
1,166,147
2,924,990
11,769,000
(99,721)		 -
1,390,475
-
-		 -
(1,454,202)
(187,824)
-		 -
-
-
-		 -
(27,258)
-
97,774		 1,166,147
2,834,005
11,581,176
(1,947)
15,760,416 1,390,475 (1,642,026) - 70,516 15,579,381
16,085,463 1,430,475 (1,711,844) - 70,516 15,874,610

17

The Society of St Stephen's House Notes to the financial statements For the year ended 30 June 2023

14 FUNDS OF THE COLLEGE DETAILS

The following is a summary of the origins and purposes of each of the Funds

Restricted Funds:

M Ramsey Fund The Organ Fund

The Armorial Fund

Community of The Servants of the Cross Fund

To fund an overseas student.

For the replacement of the church organ.

To fund armorial branding for the Society of St Stephen's House charitable company.

The capital and income of this Fund to be applied towards the funding of a scholarship for a student studying at St Stephen's House Oxford to be known as 'Community of the Servants of the Cross or CSC or JM Neale Scholarship' or to a Tutorial Fellowship at The House, to be known as 'Community of the Servants of the Cross or CSC or JM Neale Fellowship'.

The Pye Settlement

Summer School Fund USA - St Stephen's House 'In Residence'

A £2,000 donation for each of 10 years to fund work carried out in the Church, and an additional £5,000 grant towards the installation of a gate.

Funds donated to support the Society educational summer school programme.

To fund the delivery of bespoke teaching by academics from St Stephen's House in host parishes or institutions across the United States.

USA - Fund for Study Leave

USA - Fund for Graduate Studentships

The Edward King Centre

To fund clergy, academics, students, postulants and others from the United States for study leave or sabbaticals at St Stephen's House.

To enable US students to study at St Stephen's House for University of Oxford postgraduate degrees in Theology and Religion.

To support the work of The Edward King Centre for Pastoral Theology.

Academic stipend

To support the stipend of a particular academic post.

Designated Funds

The Appeal Fund

To fund the charitable purposes of The Society of St. Stephen's House.

The 1876 Society

A membership society for alumni, friends and supporters of St. Stephen's House, with the aim of providing a community of stewardship to help support the work and future of the College. All membership fees are held in The Appeal Fund.

18

The Society of St Stephen's House Notes to the financial statements

For the year ended 30 June 2023

15 ANALYSIS OF NET ASSETS BETWEEN FUNDS

2023
Tangible fixed assets
Property investments
Other investments
Net current assets
Long term liabilities
Pension scheme liabilites
2022
Tangible fixed assets
Property investments
Other investments
Net current assets
Long term liabilities
Pension scheme liabilities		 Unrestricted
Funds
£
17,200,853
994,252
183,629
55,197
(2,852,603)
(1,947)
15,579,381
Unrestricted
Funds
£
17,425,093
949,914
337,732
1
(2,852,603)
(99,721)
15,760,416		 Restricted
Funds
£
-
-
295,229
-
-
-
295,229
Restricted
Funds
£
44,338
168,384
112,325
-
-
325,047		 2023
Total
£
17,200,853
994,252
478,858
55,197
(2,852,603)
(1,947)
15,874,610
2022
Total
£
17,425,093
994,252
506,116
112,326
(2,852,603)
(99,721)
16,085,463

16 TRUSTEES' REMUNERATION

Neither the trustees nor persons connected with them received any remuneration from the Society, except as below.

Expenses for travel to meetings of £247 (2022: £476) and an officers' insurance (estimated apportioned cost: £2,800 plus insurance premium tax, 2022: £2,806) have been paid by the Society during the year.

The Principal and staff representative on the Council are trustees of Society but receive remuneration only for their academic roles. The amounts involved are:

2023 2022
£ £
Principal 47,598 48,624
Staff representative 26,366 20,392
Remuneration is calculated as gross pay and employer pension contributions.

17 KEY MANAGEMENT REMUNERATION

The total remuneration paid to key management was £151,609 (2022: £172,301).

Remuneration is calculated as gross pay, employer pension contributions and employer national insurance contributions.

Key management are considered to be the Principal, Vice Principal and the Bursar.

19

The Society of St Stephen's House Notes to the financial statements For the year ended 30 June 2023

18 PENSION SCHEMES

The College participates in three principal pension schemes for its staff – the Church of England Funded Pension Scheme (CEFPS), the Church Workers Pension Fund (CWPF) and the University of Oxford Staff Pension Scheme (OSPS).

Overview of pension provision
CEFPS
CWPS
OSPS		 2023
£
-
-
(1,947)		 2022
£
As restated
1,101
-
98,620
99,721
(1,947)

Church of England Funded Pension Scheme (CEFPS)

The Society of St Stephen's House participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Responsible Bodies.

Each participating Responsible Body in the Church of England Funded Pensions Scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year.

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on assets of £2,720m and a funding target of £2,160m, assessed using the following assumptions:

An average discount rate of 2.7% p.a.;

RPI inflation of 3.6% p.a. (and pension increases consistent

CPIH inflation in line with RPI less 0.8% pre 2030 moving to RPI with no adjustment from 2030 onwards;

Increase in pensionable stipends in line with CPIH;

Mortality in accordance with 90% of the S3NA tables, with allowance for improvements in mortality rates in line with the CMI2020 extended model with 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 allowance for 2020 data of 0% (i.e. w2020 = 0%).

Following the 31 December 2018 valuation, a deficit recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) were as set out in the table below. An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from 1 April 2022. Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with 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 as set out in the table below. For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme’s rules.

% of pensionable stipends January 2018 January 2021
to to
December December
2020 2022
Deficit repair contributions 11.9% 7.1%

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 30 June 2023 is nil.

The legal structure of the scheme is such that if another Responsible Body fails, The Society of St Stephen's House could become responsible for paying a share of that failed Responsible Body’s pension liabilities.

20

The Society of St Stephen's House Notes to the financial statements For the year ended 30 June 2023

Church Workers Pension Fund (CWPF)

The Society of St Stephen’s House participates in the Pension Builder Scheme section of CWPF for lay staff. CWPF is administered by the Church of England Pensions Board, which holds the CWPF assets separately from those of the Employer and other participating employers.

CWPF has two sections:

  1. the Defined Benefits Scheme

  2. the Pension Builder Scheme, which has two

  3. (a) a deferred annuity section known as Pension

  4. (b) a cash balance section known as Pension Builder 2014.

Pension Builder Scheme

Both sections of the Pension Builder Scheme are classed as defined benefit schemes.

Pension Builder Classic provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors.

Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65.

There is no sub-division of assets between employers in each section of the Pension Builder Scheme.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are the contributions payable.

A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2019. The next valuation is due as at 31 December 2022.

For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 10.1% following improvements in the funding position over 2022. There is no requirement for deficit payments at the current time.

For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.

The legal structure of the scheme is such that if another employer fails, The Society of St Stephen’s House could become responsible for paying a share of the failed employer’s pension liabilities.

University of Oxford Staff Pension Scheme (OSPS)

The assets of the scheme are held in separate trustee-administered funds. OSPS is a contributory mixed benefit schemes (i.e. it provide benefits on a defined benefit basis – based on length of service and pensionable salary – and on a defined contribution basis – based on contributions into the scheme). Both are multi-employer schemes and The Society of St Stephen’s House is unable to identify its share of the underlying assets and liabilities relating to defined benefits of the scheme on a consistent and reasonable basis. Therefore, in accordance with the accounting standard FRS 102 paragraph 28.11, The Society of St Stephen’s House accounts for the scheme as if it was a defined contribution schemes. As a result, the amount charged to the SoFA represents the contributions payable to the schemes in respect of the accounting period. In the event of the withdrawal of any of the participating employers in OSPS, the amount of any pension funding shortfall (which cannot be otherwise recovered) in respect of that employer will be spread across the remaining participating employers and reflected in the next actuarial valuation of the scheme.

21

The Society of St Stephen's House Notes to the financial statements For the year ended 30 June 2023

Actuarial valuation - OSPS

Qualified actuaries periodically value the OSPS scheme using the 'projected unit method', embracing a market value approach. The resulting levels of contribution take account of actuarial surpluses or deficits in the scheme. The financial assumptions were derived from market conditions prevailing at the valuation date. The results of the latest actuarial valuations and the assumptions which have the most significant effect on the results were:

Date of valuation: 31/03/2022
Date valuation resultspublished: 27/06/2023
Value of liablities: £914m
Value of assets: £961m
Fundingsurplus/(deficit): £47m
Principal assumptions:
- Discount rate: aGilts
+0.5%-2.25%
- Rate of increase in salaries: RPI
- Rate of increase in pensions: Average
RPI/CPI
Funding Ratios:
- Technicalprovisions basis: 105%
- StatutoryPension Protection Fund basis: 98%
- 'Buy-out' basis: 62%
Employer contribution rate (as % of pensionable salaries): 19% down to
16.5% for DB
members
from 01/10/23
Effective date of next valuation: 31/03/2025

a. The discount rate for the OSPS valuation was:

Pre-retirement: Equal to the UK nominal gilt curve at the valuation date plus 2.25% p.a. at each term.

Post-retirement: Equal to the UK nominal gilt curve at the valuation date plus 0.5% p.a.at each term.

The OSPS employer contribution rates include provisions for the cost of future accrual of defined benefits, deficit contributions, administrative expenses and defined contributions.�

A provision of £1,947 has been made at 30 June 2023 (2022: £98,620) for the present value of the estimated future deficit funding element of the contributions payable under these agreements, using the assumptions shown. The provision reduces as the deficit is paid off according to the pension recovery scheme.

Pension charge for the year

The pension charge recorded by the Society during the accounting peiod (excluding pension finance costs) was equal to the contributions payable after allowance for the deficit recovery plan as follows:

Scheme
CEFPS
CWPS
OSPS
Total		 2023
£
14,610
19,335
46,555
80,500		 2022
£
46,164
24,512
45,656
116,322

19 RECONCILIATION OF NET INCOMING RESOURCES TO NET CASH FLOW FROM OPERATIONS

NET CASH FLOW FROM OPERATIONS
Net (expenditure)
Elimination of non-operating cash flows:
Investment income
Losses in investments
Depreciation
Decrease in stock
(Increase) in debtors
Increase in creditors
Net cash (used in) operating activities		 2023
£
(308,627)
(34,822)
27,258
228,027
1,098
(6,872)
44,184
(49,754)		 2022
£
As restated
(384,311)
(26,269)
15,877
259,133
1,250
(72,168)
129,131
(77,357)

22

The Society of St Stephen's House Notes to the financial statements For the year ended 30 June 2023

20 ANALYSIS OF CASH AND CASH EQUIVALENTS

Cash at bank and in hand
Total cash and cash equivalents		 2023
£
417,896
417,896		 2022
£
436,615
436,615

21 RELATED PARTY TRANSACTIONS

There were no other related party transactions in the year (2022: no transactions) except for the Trustees transaction disclosed in note 16.

22 CONTINGENT LIABILITIES

On 17 July 2006 a grant to The Society of St. Stephen's House of £32,000 orginally made by The Central Board of Finance of the Church of England was assigned to The Archbishops' Council.

The grant is repayable if The Society of St Stephen's House ceases to be recognised for ordination training by the House of Bishops.

23 PRIOR YEAR ADJUSTMENT

An error was identified with the accounting entry for the OSPS pension provision in the accounts to 30 June 2022. The provision was overstated by £203,856. A prior year adjustment has been made to correct this error, which has resulted in an increase in reported net assets at 30 June 2022.

24 ADDITIONAL PRIOR YEAR COMPARATIVES

(a) Comparitive Statement of Financial Activities ("SOFA")

The comparative SOFA for the year ended 30 June 2022 (as restated) is presented below:

Unrestricted
Funds
£
Charitable activities:
Teaching, research and residential
575,247
Donations and legacies
200,315
Investments
Investment income
26,269
Other income
Concert and other event income
138,637
Other rents
259,822
1,200,290
Charitable activities:
Teaching, research and residential
1,484,182
Generating funds:
Fundraising
22,559
Other expenditure
91,801
1,598,542
Net Income/(Expenditure) before gains
(398,252)
Net gains/(losses) on investments
(15,877)
Net Income/(Expenditure)
(414,129)
Transfers between funds
-
Gains/(losses) on revaluation of fixed assets
5,370
Actuarial gains/(losses) on defined benefit pension schemes
101,928
(306,831)
Fund balances brought forward
16,067,247
15,760,416		 Restricted
Funds
£
-
39,000
-
-
-
39,000
9,182
-
-
9,182
29,818
-
29,818
-
-
-
29,818
295,229
325,047		 2022
Total
£
575,247
239,315
26,269
138,637
259,822
1,239,290
1,493,364
-
22,559
91,801
1,607,724
(368,434)
(15,877)
(384,311)
-
5,370
101,928
(277,013)
16,362,476
16,085,463

23

The Society of St Stephen's House Notes to the financial statements For the year ended 30 June 2023

b) Comparative fund movements

The comparative movement on funds for year ended 30 June 2022 (as restated):

Restricted Funds
Community of The Servants of the Cross
M Ramsey Fund
The Organ Fund
The Armorial Fund
The Pye Settlement
Summer School Fund
USA - St Stephen's House 'In Residence'
USA - Fund for Study Leave
USA - Fund for Graduate Studentships
Edward King Centre
Total Restricted Funds
Unrestricted Funds
Designated funds
General funds
Revaluation reserve
Pension reserve
Total Unrestricted Funds - Group
Total Funds		 At 1 August
2021
£
168,384
3,988
32,175
10,100
5,000
6,426
13,000
15,000
41,156
-		 Incoming
resources
£
-
-
-
-
2,000
-
-
-
-
37,000		 Resources
expended
£
-
-
-
-
-
-
-
-
-
(9,182)		 Transfers
£
-
-
-
-
-
-
-
-
-
-		 Gains/
(losses)
£
-
-
-
-
-
-
-
-
-
-		 At 31 July
2022
£
168,384
3,988
32,175
10,100
7,000
6,426
13,000
15,000
41,156
27,818
295,229 39,000 (9,182) - - 325,047
1,152,643
3,143,540
11,972,712
(201,649)		 13,504
160,389
-
-		 -
(378,939)
(203,712)
-		 -
-
-
-		 -
-
-
101,928		 1,166,147
2,924,990
11,769,000
(99,721)
16,067,246 173,893 (582,651) - 101,928 15,760,416
16,362,475 212,893 (591,833) - 101,928 16,085,463

24