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2021-08-31-accounts

Regent’s Park College

Registered Charity Number: 1181801 Registered Company Number: 11470540

Financial Statements for the year ended 31 August 2021

Wenn Townsend

Chartered Accountants

Oxford

Regent’s Park College

Contents

Page
Charity Legal and Administrative Information 1
Trustees’ Annual Report (including Directors’ Report and Strategic Report) 2
Independent Auditor’s Report 7
Statement of Financial Activities (including Income and Expenditure Account) 9
Balance Sheet 10
Statement of Cash Flows 11
Notes to the Financial Statements 12

Regent’s Park College

Legal and administrative information

Trustees The Rt Revd Dr K G Riglin (Chairman)
(all are also company directors) Prof Sir M D Evans OBE
Dr A W Harris (Hon Treasurer)
Mrs E J King
Mr S J Cowburn
Dr C D Stevens
The Revd C A Murray
Mr P B Bond (resigned 27 February 2021)
The Revd P Burnish
The Revd A Bevan
The Revd M Ord (resigned 30 June 2021)
The Revd A Mackay (resigned 28 August 2021)
Mr J A Lafferty
The Revd W Hudson-Roberts (appointed 27 February 2021)
The Revd E Mason (appointed 23 June 2021)
Fellows The Revd Dr R A Ellis * (Principal)
(* are also company directors and trustees) Dr P J Thompson *
The Revd A J Clarke *
Ms N Kilpin *
Mr S McGlynn (resigned 30 June 2020)
Dr C E Joynes *
Ms V F Kerr *
Dr L A Robson *
Dr K Kirkpatrick
Mr M Freeman *
Registered office Regents Park College
Pusey Street, Oxford, OX1 2LB
Auditors Wenn Townsend
Chartered Accountants and Registered Auditors
30 St Giles, Oxford, OX1 3LE
Bankers Barclays Bank plc
Oxford City Office, High Street, Oxford, OX1 3HS
Investment managers OU Endowment Management
King Charles House, Park End Street, Oxford, OX1 1JD
CCLA Investment Management Ltd
Senator House, 85 Queen Victoria Street, London, EC4V 4ET
Honorary Standing Counsel Malcolm Bishop QC
2 Paper Buildings, Temple, London, EC4Y 7ET
Solicitors Wrigleys Solicitors LLP
19-21 Cookridge Street, Leeds, LS2 3AG

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Regent’s Park College

Report of the trustees for the year ended 31 August 2021

The Trustees present their report and the audited financial statements of the charity for the year ended 31 August 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the charity. The directors of the charitable company are its trustees for the purposes of charity law. The trustees who have served during the year and since the year end are as listed on page 1.

Objectives and Activities for the Public Benefit

The college is a Christian foundation in the University of Oxford which focuses on achieving excellence in undergraduate and graduate studies, ministerial formation and academic research. The college’s mission is to create an exceptional community of learning and research made up of individuals from a broad range of backgrounds and life experience. Its objectives are as follows:

The college’s work and its governance are supported by the generous giving of time and money by volunteers, such as the Councils of Advisors mentioned below and the members of Council and Governing Body. For the most part, volunteers do not take part directly in the formal education of students, though a number are involved on an unpaid basis in the activities of the specialist centres for study of Christianity and Culture, and of Baptist History and Heritage. The college is also grateful for voluntary assistance with library, archive and other activities. It is not however considered realistic or helpful to attempt to quantify the financial value of time contributed by volunteers. It should also be noted that, while the college is a registered charity, it does not make use of volunteers for fund-raising activities such as street collections or trading through charity shops.

Fundraising standards information

Members of the Charity’s fundraising department organise events and carry out fundraising activities in order to generate funds for the charity. The Charity does not use professional fundraisers or involve commercial participators. There have been no complaints about fundraising activity this year.

The charity has signed up to the Fundraising Regulators Code of Fundraising Practice.

All the charity’s marketing activities are undertaken directly to ensure that it is not unreasonably persistent or intrusive. Marketing materials contain clear details of how to unsubscribe to future communications and care is taken to limit the level of communications being sent out.

Public Benefit Statement

The Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. The Trustees are satisfied that the college contributes positively to the public benefit, both directly, through its education and research activities, and indirectly, through the contribution to society at large made by its members, past and present, ordained and lay. In order to encourage able candidates from all backgrounds to apply to the college, it participates in access schemes including the University’s “Oxford Opportunity Bursary Scheme”, and to the extent that funds permit provides various forms of financial assistance, including hardship grants to students.

Strategic Report

Achievements and Performance

The total number of students was 248. The equivalent figure for the previous year was 228. The student body is made up of 107 undergraduates and 97 postgraduate students studying a range of arts subjects, 17 are training for Christian ministry, 26 are visiting undergraduate students and 1 postgraduate visiting student from overseas.

Final year students once again achieved excellent academic results, with 97% obtaining either a First or a 2:1. There were no DPhil doctoral degrees awarded during the year, 58 other graduate degrees were awarded, 39 awarded merit or distinction.

Staff and students have continued to play a significant role within the University and more widely in the community and society. College Fellows and staff have delivered an impressive list of publications, lecture series and workshops. They have also served other educational establishments as examiners or research supervisors, and been members of a wide variety of commissions, councils and ecumenical and interfaith dialogues, and worked alongside local churches and regional groupings.

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Regent’s Park College

Report of the trustees for the year ended 31 August 2021

Financial Review

The College’s main source of funding comprises fees received from students and from funding institutions such as the Higher Education Funding Council for England. These amounted to approximately £1,247,000 in the year. This is supplemented by charges for accommodation and meals (£241,000), conferences and letting, rents and library income (£114,000).

The College received two legacies totalling £247,000. General donations from individuals amounted to £109,000. 13 churches made donations amounting to £14,000. The trustees acknowledge with gratitude the continued generosity of all the college’s donors.

Investment income increased from £116,000 to £118,000. Realised and unrealised gains on investments amounted to £1,118,000 as compared to £31,000 for 2019-20, as the markets rebounded strongly in the year.

The sources of income outlined above were sufficient to cover the full cost of carrying out the College’s charitable activities. As shown in the Statement of Financial Activities set out on page 9, the college ended the year with an unrestricted funds deficit of about £81,000 before investment and revaluation gains, compared with a £9,000 deficit in the prior year. The 2019-20 result however included a credit of £99,000 for decreases to pension deficit provisions with a small credit of £1,000 in 2020/21.

The net increase in the general fund before revaluation of investment property was £54,000 (£53,000 increase before pension scheme accounting), and given the circumstances in the year this is a very positive result for the college and the trustees continue to have confidence in its long-term future.

The investments held by the college have been included in the financial statements at their market value as shown in note 7. Investments increased in value by 16.7% on average during the year. Over the same period the FTSE 100 index increased by 25.1%

Covid-19 has continued to have a significant financial impact this financial year, the majority of undergraduate students were in accommodation for the first term however the number on site was extremely restricted in the second term and a phased return implemented in the third term. The key areas of income impacted by the pandemic include accommodation and this resulted loss of income of £174.000. Visiting student fee income is £133,000 below the normal budgeted position however we expect this to return to the previous level of income in 2021/22. There were no conference or summer school bookings due to travel restrictions and this resulted in a further shortfall of £235,000.

To mitigate the loss of income all contracts and services were reviewed and suspended where possible and a hold was put on all non-essential expenditure. The refurbishment works planned for 54 St Giles have been carried forward to the following financial year and a donation of £100,000 received in 2020/21 has been moved to a designated fund along with the gift aid, this will be used as a contribution towards the refurbishment project in 2021/22.

Along with these measures all casual staff were placed on furlough for the whole of 2020/21 and a further 15 staff were placed on furlough from January to the beginning of April and from July to the end of the financial year under the Coronavirus Job Retention Scheme.

Work continued this year to move forward plans to increase graduate accommodation at 110c Banbury Road and we hope to obtain full planning permission in 2021/22.

The current pension liability shown in the accounts is £408,000 which includes an overall decrease of £1,000 in 2020/21. However, since year end the USS 2020 actuarial valuation has now been completed and we expect the pension liability to increase significantly in the next financial year.

Key financial risks facing the charity are summarised below:

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Regent’s Park College

Report of the trustees for the year ended 31 August 2021

Financial Review continued

The long-term effect of COVID on the world markets has been better than we might have feared, but the long-term effect of Brexit on the UK, in particular EU grant funding for academic research, and income from EU students coming to Oxford, is still unknown. Interest rates have risen slightly but we still expect that cash will continue to deliver poor returns when compared with equities, which has always formed the bulk of the college’s investment portfolio. This portfolio is ethically invested, where possible, and continues to comprise a mixture of bonds, equities, gilts and a limited amount of cash. It is actively managed by our, now two, investment managers and offers continued diversification which has protected us against extreme market fluctuations. In the face of future market corrections, we expect some volatility but the expectation is that this will deliver growth over the long-term (five to ten years). As has been explained before, in earlier reports, the College tries to follow ethical investment guidelines laid down by the Baptist Union of Great Britain, with some minor exceptions (e.g. alcohol). However, because the college invests through third party investment managers it is not always possible to ensure that 100% of the investment portfolios are ethical. In recent years, the college moved all of its CCLA investments into their ethical investment funds which have continued to perform well and Oxford University Endowment Management (OUEM), who manage the balance of the college’s endowment, have committed to an ethical investment strategy over time. An investment sub-committee reports to the Finance Committee on the college investment portfolios which allows for a more scientific approach to cash and equity management. Since 2014 the college has continued to grow its investments from around £2m to £7.4m of which £5m relates to permanent endowment funds.

Reserves policy

The Analysis of Funds is shown in notes 11 and 12. The college’s “free reserves”, i.e. unrestricted funds not represented by tangible fixed assets, started at £1,361,000. As at 31 August 2021 the position had further improved, with free reserves of £1,579,000 held at the year end. However, both of these figures exclude the defined benefit pension liability now recognised under SORP FRS 102 for deficit contributions due to 3 schemes. The trustees therefore remain aware of the need to monitor the college’s financial position with care. In common with other similar educational establishments, its income from course fees generally covers less than the full cost of providing education. It therefore operates at a deficit, and seeks to cover the shortfall from other sources such as donations and investment income. A key financial goal of the college is therefore to provide for financial stabilisation and reduce its dependency on donations by increasing the amount of both free reserves and permanent endowment funds. The trustees consider that an appropriate level of free reserves would be such as to cover a minimum of one year’s expenditure, i.e. about £1 million higher than the present level held.

The College continues to take steps to improve the returns from its endowment portfolios and operates a diversified investment strategy. Cash deposits are now invested with the Oxford University Endowment Managers (OUEM) in the Oxford Endowment Fund (OEF) which has performed well historically over the long term. The CCLA (Churches, Charities and Local Authorities) Investment Managers continues to provide stable returns but of course past performance is no guarantee of future earnings. The college’s endowments are diversified over the CCLA and the OUEM OEF. Cash on hand (working capital) is held with Barclays Bank but in emergencies the CCLA can return cash to the college within seven days.

Investment policy

College investments are managed on a discretionary basis by the CCLA and Oxford University Endowment Management (OUEM) although these managers are under review all the time. The investment objective for all these portfolios is to achieve a relatively high income while retaining opportunities for producing some capital growth, within the overall framework of a medium risk profile. As has already been mentioned, portfolio managers follow an investment policy for equities based on ethical considerations, for example avoiding weapons manufacture, uranium production, tobacco, and limited investments in oil. The OUEM funds are managed by Citco Fund Services (Europe) b.v. in line with University policies.

Plans for Future Periods

The main objectives for the year ahead are summarised as follows:

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Regent’s Park College

Report of the trustees for the year ended 31 August 2021

Structure, Governance and Management

Regent’s Park College, Oxford, is a Permanent Private Hall of the University of Oxford and previously operated as a registered charity, no. 309710. It was founded in 1810, when an Educational Society formed in 1752 was incorporated with the college. During the reporting period the entity has moved to become a company limited by guarantee. The new company commenced operations as of 1 January 2020, and with the consent of the Charity Commission all assets and liabilities, with the exception of its permanent endowment, were transferred to the limited company. The unincorporated body continues to hold the permanent endowment. The charitable company is governed by its Memorandum and Articles of Association dated 18 July 2018 and amended on 10 July 2019.

The Governing Body comprises the trustees and representatives of the academic and student bodies. It meets at least three times per year, once in each academic term, and determines major matters of policy, including appointment of the Principal, Fellows and Tutors. It delegates day-to-day operational decisions to the Principal, in consultation with the Fellows.

Trustee members of the Governing Body are elected by the college’s Council, which meets annually for this purpose to advise the Governing Body on the overall policy and direction of the college and when necessary, to amend the college Statutes. The Council consists of the Principal and Fellows of the college, the chairman of the Governing Body and the honorary treasurer, student representatives and recent ex-students, representatives of the Baptist Union of Great Britain, the Baptist Missionary Society, the Particular Baptist Fund and of other Baptist bodies and non-conformist denominations, together with elected lay and ministerial members who may be nominated by donors to the college and/or by existing members of Council. The trustees aim to ensure that they have between them an appropriate mix of experience and expertise, and when appropriate they encourage nominations to strengthen expertise in specific areas.

New trustees generally have a good working knowledge of the college’s activities and organisation prior to appointment, as many are alumni or otherwise associated with the college. Where necessary, additional induction procedures are coordinated by the college officers or senior staff, for example concerning guidance from the Charity Commission on trustee responsibilities.

Key Management Personnel Remuneration

The Trustees consider the Board of Trustees, the Fellows, the College Librarian and the Chef Manager as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All Trustees give of their time freely and no Trustee remuneration was paid in the year for acting as a trustee. Those Trustees who are also Fellows of the College receive no remuneration for acting as charity trustees but are paid by the College for the academic services they provide.

Details of Trustee expenses and related party transactions, and the remuneration of the Fellows of the College, are disclosed in notes 4.1 and 16 to the accounts.

Trustees are required to disclose all relevant interests and in accordance with the Trust’s policy withdraw from decisions where a conflict of interest arises.

The pay of the key personnel is reviewed annually and is normally increased in accordance with average earnings. The remuneration is reviewed to ensure that it is fair and not out of line with similar roles.

Risk management

The trustees have examined the major strategic, business and operational risks that the college faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. To assist in this function, the trustees have established a Risk Management Committee to review the risk management policy and carry out a formal risk assessment, and reports back to the full Governing Body.

Related parties

The college owns two companies limited by guarantee, which have no activities but were established in order to protect the Regent’s Park College name. The college is a member of the Baptist Union of Great Britain and is recognised by the BUGB Ministry Department for the training of Baptist ministers. It is also a member of the Southern Counties Baptist Association, and maintains formal and informal relationships with a variety of other institutions, for example through regular meetings of the Principals of the Baptist colleges in England and Wales. A partnership has been established with Georgetown College, Kentucky, to foster exchanges of students and academic staff, and each college has a representative on the other’s governing body.

Permanent endowment invested on a total return basis

One of the endowed funds, ‘Love in Religion’, is accounted for on a total return basis. A gift was received in 2014/15 for this fund, and invested in the OUEM fund. The trustees monitor the indexed value of the original endowment, and any amounts in excess of this value are considered by the trustees and allocated to income as seen fit or as required to support the charitable objectives of the Love in Religion fund.

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Regent’s Park College

Report of the trustees for the year ended 31 August 2021

Third party indemnity provisions

The college has in place directors’ and officers’ liability insurance for the purpose of indemnifying the Trustees against liability in respect of proceedings brought by third parties, subject to the conditions set out in section 234 of the Companies Act 2006. This insurance was in force during the year, and is in force as at the date of approving this report.

Trustees’ responsibilities statement

The trustees (who are also directors of Regents Park College for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charitable companies website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as they are aware, that:

In approving the Trustees’ Annual Report, they also approve the Strategic Report included therein, in their capacity as company directors.

Approved by the trustees and signed on their behalf by:

The Rt Revd Dr K G Riglin

Dr A W Harris

26 February 2022

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Regent’s Park College

Independent Auditor’s Report to the Members of Regent’s Park College

Opinion

We have audited the financial statements of Regent’s Park College (the ‘charitable company’) for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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 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 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:

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Regent’s Park College

Independent Auditor’s Report to the Trustees of Regent’s Park College (continued

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, 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 which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 specific procedures for this engagement and the extent to which these 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.

Deborah Pluck BA FCA (Senior Statutory Auditor) For and on behalf of Wenn Townsend, Chartered Accountant, Statutory Auditor

26 February 2022

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Regent’s Park College Statement of Financial Activities for the year ended 31 August 2021 (including Income and Expenditure Account)

Permanent Permanent
Unrestricted Restricted Endowment Unrestricted Restricted Endowment
Notes Funds Funds Funds Totals Funds Funds Funds Totals
2020/21 2020/21 2020/21 2020/21 2019/20 2019/20 2019/20 2019/20
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Income and endowments from:
Donations and legacies 2 345 438 14 797 142 407 14 563
Investments 11 12 95 118 17 12 87 116
Charitable activities 3 1,602 - - 1,602 1,737 - - 1,737
───── ───── ───── ───── ───── ───── ───── ─────
Total income and endowments 1,958 450 109 2,517 1,896 419 101 2,416
───── ───── ───── ───── ───── ───── ───── ─────
Expenditure on:
Raising funds 4 (90) - - (90) (69) - - (69)
Charitable activities 4 (1,950) (127) (40) (2,117) (1,935) (70) (47) (2,052)
Pension deficit contribution
liability movement 4 1 - - 1 99 - - 99
───── ───── ───── ───── ───── ───── ───── ─────
Total expenditure (2,039) (127) (40) (2,206) (1,905) (70) (47) (2,022)
───── ───── ───── ───── ───── ───── ───── ─────
Net income/(expenditure) before
gains on investments (81) 323 69 311 (9) 349 54 394
Net gains on investments 7 229 75 814 1,118 59 23 (51) 31
Net gains on investment properties 6 220 - - 220 - - - -
───── ───── ───── ───── ───── ───── ───── ─────
Net income/(expenditure) 368 398 883 1,649 50 372 3 425
Transfers between funds 11 31 (23) (8) - 34 (25) (9) -
───── ───── ───── ───── ───── ───── ───── ─────
Net movement in funds 399 375 875 1,649 84 347 (6) 425
Reconciliation of funds:
At 1 September 2020 22,110 1,114 4,151 27,375 22,026 767 4,157 26,950
───── ───── ───── ───── ───── ───── ───── ─────
At 31 August 2021 22,509 1,489 5,026 29,024 22,110 1,114 4,151 27,375
═════ ═════ ═════ ═════ ═════ ═════ ═════ ═════

All income and expenditure derive from continuing activities.

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

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Regent’s Park College

Balance Sheet at 31 August 2021

Note 2021 2020
£’000 £’000 £’000 £’000
Fixed assets
Tangible fixed assets 6 18,938 18,978
Investment properties 6 2,400 2,180
Investments 7 7,441 5,985
───── ─────
28,779 27,143
Current assets
Debtors 8 322 411
Bank and cash in hand 739 652
───── ─────
1,061 1,063
Creditors: amounts falling due within
one year 9 (408) (422)
───── ─────
Net current assets 653 641
───── ─────
Net assets excluding pension liability 29,432 27,784
Defined benefit pension liability 10 (408) (409)
───── ─────
Net assets 29,024 27,375
═════ ═════
Charity funds
Designated funds: fixed assets 11 3,542 3,582
Revaluation reserve 11 17,796 17,576
Other designated funds 11 125 -
───── ─────
21,463 21,158
General funds 11 1,046 952
───── ─────
Total unrestricted funds 11 22,509 22,110
Restricted funds 11 1,489 1,114
Permanent endowment funds 11 5,026 4,151
───── ─────
Total Funds 11 29,024 27,375
═════ ═════

The financial statements were approved and authorised for issue by the Board om 26 February 2022.

Signed on behalf of the Board of Trustees

The Rt Revd Dr K G Riglin

Dr A W Harris

The notes on pages 12 to 34 form part of the financial statements

Company registration number: 11470540

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Regent’s Park College

Statement of Cash Flows

for the year ended 31 August 2021

Reconciliation of net income to net cash flow from operating activities:

2021 2020
£’000 £’000
Net income for the year 1,649 425
Investment income received (118) (116)
Depreciation and impairment of tangible fixed assets 48 47
Gains on investments (1,338) (31)
Decrease/(increase) in debtors 89 (184)
Decrease in creditors (14) (322)
Decrease in pension provisions (1) (99)
───── ─────
Net cash flow from operating activities 315 (280)
───── ─────
Cash flow from investing activities
Investment income received 118 116
Payments to acquire tangible fixed assets (8) (31)
Payments to acquire investments (1,774) (182)
Receipts from sales of investments 1,436 71
───── ─────
Net cash flow from investing activities (228) (26)
───── ─────
Net cash flow from financing activities - -
───── ─────
Net increase/(decrease) in cash and cash equivalents 87 (306)
Cash and cash equivalents at 1 September 2020 652 958
───── ─────
Cash and cash equivalents at 31 August 2021 739 652
═════ ═════
Cash and cash equivalents consists of:
Cash at bank and in hand 739 652
═════ ═════

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Regent’s Park College Notes to the accounts for the year ended 31 August 2021

1 Summary of significant accounting policies

a) General information and basis of preparation

Regent’s Park College is a charitable company limited by guarantee in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are included in the Trustees Report.

The charitable company acquired the net assets of the unincorporated Regents Park College (registered charity 309710) on 1 January 2020 and this has been accounted for using merger accounting as required by the FRS 102 SORP in order to present a true and fair view.

For assets under a Charity Commission Scheme, the new charitable company 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.

Under merger accounting the comparative figures in these accounts represent the results and financial position of the unincorporated charity (there was no activity in the charitable company limited by guarantee before then).

As at the incorporation date (1 January 2020) the old unincorporated charity reported:

£’000
Total income 1,166
Total expenditure (789)
Other gains/(losses) 94
─────
Net movement in funds 471
═════
Net assets 27,420
═════
Represented by:
Unrestricted funds 22,011
Restricted funds 1,183
Endowment funds 4,226
─────
Total funds 27,420
═════

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £’000.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

- 12 -

Regent’s Park College

Notes to the accounts (continued) for the year ended 31 August 2021

1 Summary of significant accounting policies (continued)

b) Funds

i) Unrestricted funds

The General Fund consists of fixed assets plus those funds which the college may use in the furtherance of its charitable objectives at the discretion of the trustees. The other Unrestricted Funds are used for purposes designated by the college.

ii) Restricted funds

These funds are restricted in their use either by the nature of the appeal or by donor instruction. If capital may be spent it is not included in permanent endowment.

iii) Permanent endowment funds

The Permanent Endowment Funds are those funds whose capital is permanent by virtue of donor or appeal intention. In the case of the Creed’s Regent’s Park Fund special provisions determine its destination in the event of college closure.

c) Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity, for example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure. No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity where it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed by way of note.

The charity receives government grants in respect of the Coronavirus Job Retention Scheme. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as shares and unit trusts. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the charity’s right to receive payment is established.

- 13 -

Regent’s Park College Notes to the accounts (continued) for the year ended 31 August 2021

1 Summary of significant accounting policies (continued)

d) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

e) Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs and administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

f) Tangible fixed assets

Land and buildings are initially recognised at cost. Freehold land is subsequently carried at the revalued amount less accumulated impairment losses. Freehold buildings are subsequently carried at the revalued amounts less accumulated depreciation and accumulated impairment losses.

Land and buildings are to be revalued by independent professional valuers on a periodic basis and whenever their carrying amounts are likely to differ materially from their revalued amounts. When an asset is revalued, any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset. The net amount is then restated to the revalued amount of the asset.

Increases in carrying amounts arising from revaluation are recognised in the revaluation reserve, unless they offset previous decreases in the carrying amounts of the same asset. Decreases in carrying amounts that offset previous increases of the same asset are recognised against the revaluation reserve. All other decreases in carrying amounts are recognised as a loss in the SoFA.

All other items of property, plant and equipment are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold land and buildings - Nil Fixtures and fittings - 20% Reducing balance Computer equipment/alarm - 25% Straight line Boiler/roof - 10% Straight line Temporary accommodation - 20% Straight line

- 14 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

1 Summary of significant accounting policies (continued)

f) Tangible fixed assets (continued)

Freehold property is shown at the latest available valuation. No depreciation has been charged on the value of the buildings, as, in the opinion of the Trustees, the regular valuation of such properties, coupled with the continuing programme of renewal and renovation would render such a charge to be immaterial. For this reason, the Trustees carry out an annual assessment of the properties.

g) Investment properties

Investment properties are measured at fair value at each reporting date with changes in fair value recognised in ‘net gains / (losses) on investments’ in the SoFA.

h) Investments

Investments are measured at fair value with changes recognised in ‘net gains/(losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

i) Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

j) Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

k) Foreign currency

Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

l) Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The college contributes to a variety of externally administered pension schemes on behalf of its staff (see Note 16). Several of the schemes are multi-employer schemes and the College is unable to identify its share of the underlying assets and liabilities of each scheme on a consistent and reasonable basis. Therefore, in accordance with FRS 102, the College accounts for the schemes as if they were defined contribution schemes. As a result, the amount charged to the income and expenditure account represents the contributions payable to the schemes in respect of the accounting period.

Some of the schemes have put in place agreements for additional contributions to fund their past service deficits. In accordance with the provisions of FRS 102 the College has recognised a liability for the future contributions that it estimates will be payable as a result of these deficit funding agreements.

- 15 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

1 Summary of significant accounting policies (continued)

m) Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

n) Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The trustees have included an assessment of the impact of COVID-19 as part of this assessment. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

o) Judgements and key sources of estimation uncertainty

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

(i) Pension scheme liability

FRS 102 makes the distinction between a Group Plan and a multi-employer scheme. A Group Plan consists of a collection of entities under common control typically with a sponsoring employer. A multi-employer scheme is a scheme for entities not under common control and represents (typically) an industry-wide scheme such as that provided by USS, OSPS, BPS, and CEFPS. The accounting for a multi-employer scheme where the employer has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense is recognised in profit or loss in accordance with section 28 of FRS 102. The trustees are satisfied that the schemes provided by USS, OSPS, BPS, and CEFPS meet the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the funding plans in existence at the date of approving the financial statements.

(ii) Property valuations

The charity has adopted the revaluation policy when accounting for freehold property assets, and also holds investment property which is included on the balance sheet at fair value. In both cases the charity obtains periodic professional valuations on which carrying values are based. However, the trustees exercise their own judgement at each period end as to whether there has been a material change since the last valuation date that would necessitate a professional valuation and subsequent revaluation in the accounts.

(iii) OUEM investments

One investment holding is only able to provide market valuations at July 2021, as opposed to the year end date. The next available valuation is September, and the trustees review this valuation to ensure that there is a low risk of material movement between the July valuation used for accounting purposes, and the actual year end date. This holding was valued at £3.57m in the accounts. The value at September 2021 was £3.7m, and thus the trustees are satisfied the valuation in the accounts is not materially misstated.

- 16 -

Regent’s Park College Notes to the Accounts (continued) for the year ended 31 August 2021

1 Summary of significant accounting policies (continued)

o) Judgements and key sources of estimation uncertainty (continued)

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

(i) Pension scheme liability

The trustees are required to make assumptions on future staffing levels when calculating the various pension scheme liabilities. These are included as best estimates at the date of calculation, but present a significant risk in potentially causing a material adjustment to the balance sheet.

2 Income from donations and legacies

Income from donations and legacies
Total Total
2020/21 2019/20
£’000 £’000
Gifts 360 135
Legacies 247 1
Government grants 58 72
Other grants 132 355
───── ─────
797 563
═════ ═════

Included above is £58k (2020: £72k) of government grants relating to the Coronavirus Job Retention Scheme.

3 Income from charitable activities

Income from charitable activities
Total Total
2020/21 2019/20
£’000 £’000
Fee income from domestic and overseas students 987 903
Fee income from visiting students 257 279
Special courses 3 13
Battels, other accommodation and meals 241 346
Conference and letting income 5 44
Flat rentals 69 72
Library income 27 27
Other income 13 53
───── ─────
1,602 1,737
═════ ═════

- 17 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

4 Analysis of total resources expended

Analysis of total resources expended
Staff Total Total
Costs Other Depreciation 2020/21 2019/20
£’000 £’000 £’000 £’000 £’000
Cost of generating funds:
Fundraising costs 87 - - 87 64
Investment management costs - 3 - 3 5
───── ───── ───── ───── ─────
87 3 - 90 69
═════ ═════ ═════ ═════ ═════
Charitable activities:
Educational costs:
Teaching and library 1,047 53 - 1,100 1,092
Academic support, grant and prizes - 42 - 42 29
Other educational costs - 3 7 10 12
───── ───── ───── ───── ─────
1,047 98 7 1,152 1,133
───── ───── ───── ───── ─────
College and premises costs:
Maintenance, catering and utilities 248 294 41 583 644
College support - 349 - 349 241
───── ───── ───── ───── ─────
248 643 41 932 885
───── ───── ───── ───── ─────
Governance costs:
Audit and accountancy - 28 - 28 29
Salaries, social security and pensions 5 - - 5 5
───── ───── ───── ───── ─────
5 28 - 33 34
───── ───── ───── ───── ─────
Total charitable activities
 1,300 769 48 2,117 2,052
═════ ═════ ═════ ═════ ═════
Movement on pension deficit
contribution liability: (1) - - (1) (99)
═════ ═════ ═════ ═════ ═════
Total expenditure: 1,386 772 48 2,206 2,022
═════ ═════ ═════ ═════ ═════

4.1 Trustees’ and key management personnel remuneration and expenses

No remuneration was received by the Trustees during the year (2020: £nil). Those Trustees who are also Fellows of the College receive no remuneration for acting as charity trustees but are paid by the College for the academic services they provide. Travel expenses reimbursed to non-employee trustees amounted to £Nil (2020: £308).

Details of the remuneration of the Fellows who are also Trustees is included in note 17 of these financial statements.

The Trust considers its key management personnel comprise the Trustees, the Fellows, the College Librarian and the Chef Manager. The total amount of employee benefits received by Key Management Personnel is £652k (2020: £521k).

4.2 Auditor’s remuneration

Auditor’s remuneration
2021 2020
£’000 £’000
Fee provision including VAT for current financial year audit and accounts 16 15
Fee provision including VAT for other work 1 1
Under/(over) provision in previous year 1 1
Payroll administration 10 12
───── ─────
28 29
═════ ═════

- 18 -

Regents Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

5 Staff costs and employee benefits

The average monthly number of employees and full-time equivalent employees during the year was 59 and 35 respectively (2020: 55 and 35).

The total staff costs and employee benefits was as follows:

he total staff costs and employee benefits was as follows:
2021 2020
£’000 £’000

Wages and salaries		 1,101 1,070
Social security 90 89
Employer pension contributions 196 178
───── ─────
1,387 1,339
Decrease in pension deficit contribution liability (1) (99)
───── ─────
1,386 1,238
═════ ═════

No employees received total employee benefits (excluding employer pension costs) of more than £60,000 in the year.

6 Tangible fixed assets

The tangible fixed assets and investment properties included in the accounts at 31 August 2021 were as follows:

Fixtures,
Investment Freehold Fittings and
Property Property Equipment Total
£’000 £’000 £’000 £’000
Cost/valuation
At 1 September 2020 2,180 18,865 744 21,789
Additions - - 8 8
Revaluation 220 - - 220
───── ───── ───── ─────
At 31 August 2021 2,400 18,865 752 22,017
───── ───── ───── ─────
Depreciation
At 1 September 2020 - - 631 631
Charged in year - - 48 48
───── ───── ───── ─────
At 31 August 2021 - - 679 679
───── ───── ───── ─────
Net book value
At 31 August 2021 2,400 18,865 73 21,338
═════ ═════ ═════ ═════
At 31 August 2020 2,180 18,865 113 21,158
═════ ═════ ═════ ═════
Properties:
College site and buildings 18,865
110c Banbury Road, Oxford 2,400
─────
21,265
═════

- 19 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

6 Fixed assets (continued)

The historic cost equivalent of land and buildings included at valuation are as follows:

2021 2020 2020
Investment Land and Investment Land and
properties buildings properties buildings
£’000 £’000 £’000 £’000
Cost 1,900 1,289 1,900 1,289
Accumulated depreciation - - - -
Net book value 1,900 1,289 1,900 1,289

The college site and buildings were subject to independent, professional valuation at 31st August 2019. The valuation was undertaken by Carter Jonas LLP, an RICS Registered Valuer, on a market value basis.

The investment property held was valued by the trustees at the year end date, based on a review of market conditions since the last professional valuation undertaken in 2015, and in consultation with professional advisors as at 31 August 2021.

7 Investments

7.1 The market value of investments included in the accounts at 31 August 2021 was as follows:-

2021 2020
Market Market
Value Value
£’000 £’000
At 1 September 2020 5,985 5,843
Additions 1,869 139
(Decrease)/increase in cash pending investment (95) 43
Disposals (1,436) (71)
Revaluation 1,118 31
───── ─────
Total market value at 31 August 2021 7,441 5,985
═════ ═════

The fair value of listed investments is determined by reference to the quoted price for these assets on active markets at the balance sheet date.

7.2 The charitable company controls two subsidiary companies ‘Regents Park College (Oxford) Limited (company number 02948887)’ and ‘Regents Park College Incorporated Limited (company number 03212325)’, both of which are currently dormant. These entities each have net assets of £2 at 31 August 2021 (2020: £2).

- 20 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

8 Debtors 2021 2020
£’000 £’000
Trade debtors 121 139
Other debtors 175 120
Prepayments and accrued income 26 152
───── ─────
322 411
═════ ═════
9 Creditors due in less than one year
2021 2020
£’000 £’000
Trade creditors 31 34
Accruals and deferred income 261 270
Other taxation and social security 22 21
Other creditors 94 97
───── ─────
408 422
═════ ═════

- 21 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

10 Pension schemes

Staff belong to a variety of different pension schemes, depending on their vocational and employment background. Several of these are defined benefit (sometimes described as “final salary”) schemes, which are administered centrally, on behalf of many participating employers, and the college is unable to identify its share of the underlying assets and liabilities. The scheme administrators determine employer and employee contributions rates from time to time, based on actuarial advice. A summary table of the defined benefit schemes the college is a member of, including the contribution rates paid by the college to such schemes during the year is as follows:

Baptist
Pension		 USS OSPS Total
Liability
Date of last full agreed valuation: 31/12/2019 31/03/2018 31/03/2019
Value of liabilities: £316m £67.3bn £848m
Value of assets: £298m £63.7bn £735m
Funding surplus/(deficit): (£18m) £(3.6bn) (£113m)
Recommended Employer’s
contribution rate during the year (as
% of pensionable salaries):		 See below 21.1% 19%
Effective date of next full valuation: 31/12/2022 31/03/2020 31/03/2022
Deficit contribution liability included
on balance sheet at 31st August
2021:		 £26,000 £138,000 £244,000 £408,000

10.1 Baptist Pension Scheme

The College is an employer participating in a pension scheme known as the Baptist Pension Scheme (“the Scheme”), which is administered by the Pension Trustee (Baptist Pension Trust Limited). The Scheme is a separate legal entity and the assets of the Scheme are held separately from those of the Employer and the other participating employers.

For any month, each participating employer in the Scheme pays contributions as set out in the Schedule of Contributions in force at that time.

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 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 contributions payable towards benefits and expenses accrued in that year, plus any impact of deficiency contributions (see below).

From January 2012, pension provision is being made through the Defined Contribution (DC) Plan within the Scheme. In general, members pay 8% of their Pensionable Income and employers pay 6% of members’ Pensionable Income into individual pension accounts, which are operated and managed on behalf of the Pension Trustee by Legal and General Life Assurance Society Limited. In addition, the employer pays a further 4% of Pensionable Income to cover Death in Service Benefits, administration costs, and an associated insurance policy which provides income protection for Scheme members in the event that they are unable to work due to long-term incapacity. This income protection policy has been insured by the Baptist Union of Great Britain with Aviva. Members of the Basic Section pay reduced contributions of 5% of Pensionable Income, and their employers also pay a total of 5%.

- 22 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

10 Pension schemes (continued)

10.1 Baptist Pension Scheme (continued)

Benefits in respect of service prior to 1 January 2012 are provided through the Defined Benefit (DB) Plan within the Scheme. The main benefits for pre-2012 service were a defined benefit pension of one eightieth of Final Minimum Pensionable Income for each year of Pensionable Service, together with additional pension in respect of premiums paid on Pensionable Income in excess of Minimum Pensionable Income. The Scheme, previously known as the Baptist Ministers’ Pension Fund, started in 1925, but was closed to future accrual of defined benefits on 31 December 2011.

Actuarial valuation as at 31 December 2019

A formal valuation of the Defined Benefit (DB) Plan was performed at 31 December 2019 by a professionally qualified Actuary using the Projected Unit Method. The market value of the DB Plan assets at the valuation date was £298 million.

The valuation of the DB Plan revealed a deficit of assets compared with the value of liabilities of £18 million (equivalent to a past service funding level of 94%). The College and the other employers supporting the DB Plan are collectively responsible for funding this deficit.

The key assumptions underlying the valuation were as follows:

Type of financial assumption % pa
RPI price inflation assumption 3.20
CPI price inflation assumption 2.70
Minimum Pensionable Income increases (RPI) 3.20
Assumed investment returns
- Pre-retirement 2.95
- Post retirement 1.70
Deferred pension increases
- Pre April 2009 3.20
- Post April 2009 2.50
Pension increases
- Main Scheme pension 2.70

Post-retirement mortality in accordance with 80% of the S3NFA and S3NMA tables, with allowance for future improvements in mortality rates from 2013 in line with the CMI 2019 core projections, with a long term annual rate of improvement of 1.75% for males and 1.5% for females, with the core smoothing parameter and with additional initial mortality improvement factor A=0.5%.

As there is a large number of contributing employers participating in the Scheme, the College is unable to identify its share of the underlying assets and liabilities of the scheme. Accordingly, due to the nature of the Scheme, the profit and loss charge for the period represents the employer contributions payable. The total pension cost for the College is £18k (2020: £9k).

The next actuarial valuation of the DB Plan within the Scheme is due to take place not later than as at 31 December 2022.

- 23 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

10 Pension schemes (continued)

10.1 Baptist Pension Scheme (continued)

Recovery Plan

In addition to the contributions to the DC plan set out above, where a valuation of the DB Plan reveals a deficit the Trustee and the Council agree to a rate of deficiency contributions from churches and other employers involved in the DB Plan.

Under the current Recovery Plan dated 30 September 2020, deficiency contributions are payable until 30 June 2026. These contributions are broadly based on the employer’s membership at 30 December 2014 and increase annually in line with increases to Minimum Pensionable Income as defined in the Rules. However, the Trustee and the Council agreed a 50% reduction for all deficiency contributions payable between 1 July 2020 and 31 December 2020.

Movement in Balance Sheet liability

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. The movement in the provision is set out in the table below:

Accounting date (year ending):

Accounting date (year ending): Accounting date (year ending):
31 August 2021 31 August 2020
£’000 £’000
Balance sheet liability at year start 44 49
Minus deficiency contributions paid (5) (5)
Interest cost (recognised in SoFA) 1 1
Remaining change to balance sheet liability* (recognised in SoFA) (14) (1)
───── ─────
Balance sheet liability at year end 26 44
═════ ═════

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions set by reference to the duration of the deficit recovery payments:

Accounting date 31 August 31 August 31 August
2020 2019 2018
Discount rate 0.8% 0.8% 1.6%
Future increases to Minimum Pensionable Income 3.5% 2.9% 3.1%

- 24 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

10 Pension schemes (continued)

10.2 Universities Superannuation Scheme (USS)

The pension charge for the year includes a charge of £60k (2020: credit of £24k) in relation to the USS. This represents contributions of £77k payable to the USS, decreased by the change in the deficit funding liability between the opening and closing balance sheet dates of £17k (2020: decreased by £112k).

The latest available complete actuarial valuation of the Scheme for this accounting year end is as at 31 March 2018 (“the valuation date”), which was carried out 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 valuation and the assumptions which have the most significant effect on the results were:

USS
Date of valuation: 31/03/18
Date valuation results published: 16/09/19
Value of liabilities: £67.3bn
Value of assets: £63.7bn
Funding surplus / (deficit): (£3.6bn)
Principal assumptions:
•
Discount rate		 CPI - 0.73% to CPI +2.52%a
•
Rate of increase in salaries		 n/a
•
Rate of increase in pensions		 CPIb
Assumed life expectancies on retirement at age 65:
•
Males currently aged 65		 24.6 yrs
•
Females currently aged 65		 26.1 yrs
•
Males currently aged 45		 26.6 yrs
•
Females currently aged 45		 27.9 yrs
Funding Ratios:
•
Technical provisions basis
•
Statutory Pension Protection Fund basis
•
‘Buy-out’ basis		 95%
76%
56%
Employer contribution rate (as % of pensionable salaries): 21.1% increasing to 23.7% on
01/10/21
Effective date of next valuation: 31/03/20

Years 1-10: CPI + 0.14% reducing linearly to CPI – 0.73% Years 11-20: CPI + 2.52% reducing linearly to CPI + 1.55% by year 21 Years 21 +: CPI + 1.55%

Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves, less 1.3% p.a.

- 25 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

10 Pension schemes (continued)

10.2 Universities Superannuation Scheme (USS) (continued)

Sensitivity of actuarial valuation assumptions

Surpluses or deficits which arise at future valuations may impact on the company’s future contribution commitment. The sensitivities regarding the principal assumptions used to measure the scheme liabilities are set out below:

USS
Assumption Change in assumption Impact on USS liabilities
Initial discount rate increase by 0.1% decrease by £1.2bn
Asset values reduce by 10% increase by £6.4bn
RPI – CPI spread increase by 0.1% decrease by £0.7bn
Rate of mortality more prudent assumption increase by £1.6bn
(mortality rated down by a
further year)

Deficit Recovery Plans

In line with FRS 102 paragraph 28.11A, the company has recognised a liability for the contributions payable for the agreed deficit funding plan. The principle assumptions used in these calculations are tabled below:

USS
Finish Date for Deficit Recovery Plan 31/03/28
Average staff number increase Nil
Average staff salary increase 2.0% pa
Average discount rate over period 0.89%

A provision of £138k has been made at 31 August 2021 (2020: £155k) 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.

Since the year end, following the completion of the 2020 actuarial valuation , a new dual rate schedule of contributions has been agreed with an effective date of 1 October 2021. Recalculating the USS provision on the basis of these contributions would result in an increased obligation to fund the deficit as detailed in note 14 below.

A copy of the full actuarial valuation report and other further details on the scheme are available on the USS website www.uss.co.uk.

10.3 Oxford Staff Pension Scheme

The pension charge for the year includes a charge of £118k (2020: charge of £85k) in relation to the OSPS. This represents contributions of £84k payable to the OSPS as increased by the change in the deficit funding liability between the opening and closing balance sheet dates of £34k (2020: increase of £18k).

- 26 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

10 Pension schemes (continued)

10.3 Oxford Staff Pension Scheme (continued)

Actuarial valuations

Qualified actuaries periodically value OSPS defined benefits using the ‘projected unit method’, embracing a market value approach. The resulting levels of contribution take account of actuarial surpluses or deficits in each 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:

OSPS
Date of valuation: 31/03/19
Date valuation results published: 19/06/20
Value of liabilities: £848m
Value of assets: £735m
Funding surplus / (deficit): (£113m)
Principal assumptions:
•
Discount rate		 Gilts +0.5%- 2.25%a
•
Rate of increase in salaries		 RPI
•
Rate of increase in pensions		 Average RPI/CPIb
Assumed life expectancies on retirement at age 65:
•
Males currently aged 65		 21.7 yrs
•
Females currently aged 65		 24.4 yrs
•
Males currently aged 45		 23.0 yrs
•
Females currently aged 45		 25.8 yrs
Funding Ratios:
•
Technical provisions basis
•
Statutory Pension Protection Fund basis
•
‘Buy-out’ basis		 87%
74%
60%
Employer contribution rate (as % of pensionable salaries): 19%
Effective date of next valuation: 31/03/22

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.

RPI inflation is derived from the geometric difference between the UK nominal gilt curve and the UK index-linked curve at the valuation date, less 0.3% p.a. at each term. CPI inflation is derived from the RPI inflation assumption, less the Scheme Actuary’s best estimate of the long-term difference between RPI and CPI inflation as applies from time to time (1.0% p.a. as at 31 March 2019).

For pension increases linked to inflation, a pension increase curve is constructed based on either the RPI, CPI or the average of the RPI and CPI inflation curves described above, adjusted to allow for the different maximum and minimum annual increases that apply, and the Scheme Actuary’s best estimate of inflation volatility as applies from time to time.

- 27 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

10 Pension schemes (continued)

10.3 Oxford Staff Pension Scheme (continued)

Sensitivity of actuarial valuation assumptions

Surpluses or deficits which arise at future valuations may impact on the company’s future contribution commitment. The sensitivities regarding the principal assumptions used to measure the scheme liabilities are set out below:

OSPS
Assumption Change in assumption Impact on OSPS technical
provisions
Valuation rate of interest decrease by 0.25% increase by £45m
RPI increase by 0.25% Increase by £40m

Deficit Recovery Plans

In line with FRS 102 paragraph 28.11A, the company has recognised a liability for the contributions payable for the agreed deficit funding plan. The principle assumptions used in these calculations are tabled below:

OSPS
Finish Date for Deficit Recovery Plan 30/01/28
Average staff number increase Nil
Average staff salary increase 2.0% pa
Average discount rate over period 0.89%

A provision of £244k has been made at 31 August 2021 (2020: £210k) 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.

A copy of the full actuarial valuation report and other further details on the scheme are available on the University of Oxford website http://www.admin.ox.ac.uk/finance/epp/pensions/schemes/osps/.

- 28 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

11 Fund reconciliation

11.1 Funds 2020/21

Funds 2020/21
Opening Gains/ Closing
Balance Income Expenditure Transfers Losses Balance
£’000 £’000
£’000		 £’000 £’000 £’000
Unrestricted Funds
Revaluation Reserve 17,576 -
-		 - 220 17,796
Fixed Assets 3,582 -
(48)		 8 - 3,542
St Giles Project Fund - 125
-		 - - 125
General Funds 952 1,828
(1,991)		 28 229 1,046
Tutorial Support Funds - 4
-		 (4) - -
Pastoral Training Funds - 1
-		 (1) - -
───── ─────
─────		 ───── ───── ─────
Total Unrestricted Funds 22,110 1,958
(2,039)		 31 449 22,509
───── ─────
─────		 ───── ───── ─────
Restricted Funds
Creed’s Regent’s Park Fund
-		 9
-		 (9) - -
Pamela Sue Anderson
Studentship 339 -
(4)		 - 68 403
OPGDI Fund 357 52
(26)		 (8) - 375
Ministerial Training Funds - 1
-		 (1) - -
Ministerial Student
Assistance Funds 33 15
-		 - - 48
Library Funds 11 221
-		 - - 232
Scholarship Funds 182 1
(9)		 - 4 178
Prize Funds 10 -
-		 - - 10
Other Funds 182 151
(88)		 (5) 3 243
───── ─────
─────		 ───── ───── ─────
Total Restricted Funds 1,114 450
(127)		 (23) 75 1,489
───── ─────
─────		 ───── ───── ─────
Endowment Funds
Tutorial Support Funds:
Professorial Fund 102 -
-		 - 21 123
Sutton Page Fund 174 -
-		 - 36 210
Tutor in Christian Doctrine
70		 -
-		 - 15 85
Tutor in Ecclesiastical History 338 -
-		 - 70 408
Special Endowments 236 -
-		 - 49 285
Pastoral Training Funds 188 -
-		 - 39 227
In-pastorate Training Funds 19 -
-		 - 4 23
Love in Religion Fund 2,296 95
(40)		 (8) 433 2,776
Creed’s Regent’s Park Fund
220		 -
-		 - 43 263
Ministerial Training Funds 120 -
-		 - 25 145
Ministerial Student
Assistance Funds 29 -
-		 - 6 35
Library Funds 76 14
-		 - 15 105
Scholarship Funds 196 -
-		 - 41 237
Prize Funds 26 -
-		 - 5 31
Other Funds 61 -
-		 - 12 73
───── ─────
─────		 ───── ───── ─────
Total Endowment Funds 4,151 109
(40)		 (8) 814 5,026
───── ─────
─────		 ───── ───── ─────
Total Funds 27,375 2,517
(2,206)		 - 1,338 29,024
═════ ═════
═════		 ═════ ═════ ═════

- 29 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

11 Fund reconciliation (continued)

11.2 Funds 2019/20
Opening
Gains/
Closing
Balance
Income Expenditure Transfers
Losses
Balance
£’000
£’000
£’000
£’000
£’000
£’000
Unrestricted Funds
Revaluation Reserve
17,576
-
-
-
-
17,576
Fixed Assets
3,598
-
(47)
31
-
3,582
General Funds
852
1,889
(1,858)
10
59
952
Tutorial Support Funds
-
6
-
(6)
-
-
Pastoral Training Funds
-
1
-
(1)
-
-
─────
─────
─────
─────
─────
─────
Total Unrestricted Funds
22,026
1,896
(1,905)
34
59
22,110
─────
─────
─────
─────
─────
─────
Restricted Funds
Creed’s Regent’s Park Fund
-
9
-
(9)
-
-
Pamela Sue Anderson
Studentship
320
-
(2)
-
21
339
OPGDI Fund
59
340
(31)
(11)
-
357
Ministerial Training Funds
-
1
-
(1)
-
-
Ministerial Student
Assistance Funds
20
13
-
-
-
33
Library Funds
11
-
-
-
-
11
Scholarship Funds
179
6
(4)
-
1
182
Prize Funds
10
-
-
-
-
10
Other Funds
168
50
(33)
(4)
1
182
─────
─────
─────
─────
─────
─────
Total Restricted Funds
767
419
(70)
(25)
23
1,114
─────
─────
─────
─────
─────
─────
Endowment Funds
Tutorial Support Funds:
Professorial Fund
97
-
-
-
5
102
Sutton Page Fund
167
-
-
-
7
174
Tutor in Christian Doctrine
67
-
-
-
3
70
Tutor in Ecclesiastical History 324
-
-
-
14
338
Special Endowments
226
-
-
-
10
236
Pastoral Training Funds
180
-
-
-
8
188
In-pastorate Training Funds
18
-
-
-
1
19
Love in Religion Fund
2,374
87
(47)
(9)
(109)
2,296
Creed’s Regent’s Park Fund
231
-
-
-
(11)
220
Ministerial Training Funds
115
-
-
-
5
120
Ministerial Student
Assistance Funds
28
-
-
-
1
29
Library Funds
59
14
-
-
3
76
Scholarship Funds
188
-
-
-
8
196
Prize Funds
25
-
-
-
1
26
Other Funds
58
-
-
-
3
61
─────
─────
─────
─────
─────
─────
Total Endowment Funds
4,157
101
(47)
(9)
(51)
4,151
─────
─────
─────
─────
─────
─────
Total Funds
26,950
2,416
(2,022)
-
31
27,375
═════
═════
═════
═════
═════
═════

- 30 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

11 Fund reconciliation (continued)

The bulk of the endowment funds above are trust-based permanent endowment funds that either remain held by the original unincorporated charity, which is a linked charity for reporting purposes at the Charity Commission (charity no: 1181801-1), or are held in other charities already previously linked to the original unincorporated entity. The exception to this is the Love in Religion Fund, which is a non-trust permanent endowment fund and thus is legally held by the incorporated entity.

12 Analysis of net assets between funds

Permanent
Unrestricted Restricted Endowment Totals
Funds Funds Funds 2021
£’000 £’000 £’000 £’000
Bank and money on deposit 286 453 - 739
Debtors, prepayments and stock 322 - - 322
Current liabilities (408) - - (408)
───── ───── ───── ─────
Net current assets 200 453 - 653
Investments 1,379 1,036 5,026 7,441
Fixed assets 21,338 - - 21,338
Defined benefit pension liability (408) - - (408)
───── ───── ───── ─────
At 31 August 2021 22,509 1,489 5,026 29,024
═════ ═════ ═════ ═════
Permanent
Unrestricted Restricted Endowment Totals
Funds Funds Funds 2020
£’000 £’000 £’000 £’000
Bank and money on deposit 264 388 - 652
Debtors, prepayments and stock 411 - - 411
Current liabilities (422) - - (422)
───── ───── ───── ─────
Net current assets 253 388 - 641
Investments 1,108 726 4,151 5,985
Fixed assets 21,158 - - 21,158
Defined benefit pension liability (409) - - (409)
───── ───── ───── ─────
At 31 August 2020 22,110 1,114 4,151 27,375
═════ ═════ ═════ ═════

- 31 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

13 Permanent endowment invested on a total return basis – Love in Religion Fund

The charity has exercised its rights by the trustees under section 104(A) of the Charities Act 2011 on 14th November 2015. This permits the trustees to invest permanently endowed funds to maximise total return and therefore to apply an appropriate portion of the unapplied total return to income. The unapplied total return remains invested as part of the permanent endowment until that power is exercised. When exercised it allows the trustees to apply an appropriate portion of the unapplied total return to income each year.

As at 31st August 2021, this right has been exercised on one specific endowment fund, ‘Love in Religion’.

During the current year the trustees have transferred £48k to unrestricted income funds, to support the costs of the ‘Love in Religion’ fund.

Endowment Unapplied Total
for total endowment
investment return
2021 £’000 £’000 £’000
At 1st September 2020:
Gift component of permanent endowment (indexed value) 1,960 - 1,960
Unapplied total return - 336 336
───── ───── ─────
1,960 336 2,296
Movements:
Valuation gains in year - 433 433
Investment income in year - 95 95
Indexation in year 63 (63) -
───── ───── ─────
63 465 528
Unapplied total return allocated to income to finance
‘Love in Religion’ expenditure - (48) (48)
───── ───── ─────
Gift component of permanent endowment (indexed value) 2,023 - 2,023
Unapplied total return - 753 753
───── ───── ─────
Total 2,023 753 2,776
═════ ═════ ═════
2020
At 1st September 2019:
Gift component of permanent endowment (indexed value) 1,956 - 1,956
Unapplied total return - 418 418
───── ───── ─────
1,956 418 2,374
Movements:
Valuation losses in year - (109) (109)
Investment income in year - 87 87
Indexation in year 4 (4) -
───── ───── ─────
4 (26) (22)
Unapplied total return allocated to income to finance
‘Love in Religion’ expenditure - (56) (56)
───── ───── ─────
Gift component of permanent endowment (indexed value) 1,960 - 1,960
Unapplied total return - 336 336
───── ───── ─────
Total 1,960 336 2,296
═════ ═════ ═════

- 32 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

14 Events after the reporting period

Since the year end, and following the completion of the 2020 actuarial valuation , a new dual rate schedule of contributions has been agreed with an effective date of 1 October 2021. Recalculating the USS provision on the basis of these contributions would result in an increased obligation of £378,000 to fund the deficit. This would be an increase of £240,000 on the current provision in the 2021 accounts.

A further change to deficit recovery contributions will become applicable under the 2020 valuation if the Joint Negotiating Committee recommended deed on benefit changes has not been executed by 28 February 2022. In this scenario, higher deficit recovery contributions will commence from 1 October 2022 at 3% and then increase every 6 months until they reach 20% at 1 October 2025. They remain at this level until 31 July 2032. Negotiations continue and an increase to this level is considered remote.

If the Schedule of Contributions remains unchanged, the College's Financial Statements for the year ended 31 August 2022 will reflect these changes to the provision, subject to any other changes in financial and operational assumptions.

15 Related party transactions

From time to time, the trustees approve joint property ownership arrangements with ordained staff, where they consider that these are in the interest of the college, subject to their being negotiated on an independent “arm’s length” basis.

There were no other related party transactions during the period.

16 Fellows’ remuneration

The college has a large governing body, comprising some fellows and others appointed by its Council, which in turn acts as the trustee body. Some of these trustees are salaried fellows of the college, receiving salaries for the performance of their duties as Fellows rather than for their trusteeship.

While the Charities SORP requires full disclosure of payments being made to trustees, it does not require the same level of disclosure of employee salaries.

Disclosure is normally required on a line by line basis because it is not normal for trustees to receive remuneration from charities. However, in an Oxford college, trustees who are Fellows are normally employees, and it is normal practice to pay teaching and research staff. A requirement to disclose in this particular context would be likely to raise data protection and human rights concerns.

The remuneration attached to individual trustees has been disclosed below on an anonymous basis within bands of £20,000.

No Trustee of Regent’s Park College receives any remuneration for acting as a Trustee nor does any Fellow claim any expenses for their work as a Trustee.

- 33 -

Regent’s Park College

Notes to the Accounts (continued) for the year ended 31 August 2021

16 Fellows’ remuneration (continued)

The total remuneration of Fellows who are also Trustees for the year ended 31 August 2021 was £336k (2020: £293k), and total pension contributions paid by the College were £65k (2020: £56k).

Remuneration Range Number of Number of
£ Fellows as Fellows as
Trustees Trustees
2021 2020
Total Total
0 – 20,000 - 1
20,001 – 40,000 1 7
40,001 – 60,000 7 3
───── ─────
8 11

- 34 -