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2021-08-31-accounts

Westminster Presbyterian Theological Seminary

Report and Accounts

31 August 2021

Charity registration number 1184509

Westminster Presbyterian Theological Seminary Report and accounts Contents

Page
Charity information 1
Report of the Trustees 2
Independent examiner's report 5
Statement of Financial Activities 6
Balance sheet 7
Cashflow 8
Notes to the accounts 9

Westminster Presbyterian Theological Seminary Trust information

Trustees Rev. Charles Richard Henry Holst (Chairman) William Schweitzer (resigned 29.6.2021) Dr Donald John MacLean Nathan Hilton Rev. Jon David Payne Benjamin Wontrop Charity number 1189657 Charity address Alderman Fenwick's House 98-100 Pilgrim Street Newcastle NE1 6SX Independent examiner Kinnair and Company Limited Aston House Redburn Road Newcastle Upon Tyne NE5 1NB

1

Westminster Presbyterian Theological Seminary Trustees' report

Introduction

The Trustees of Westminster Presbyterian Theological Seminary present their report and accounts for the period ended 31 August 2021. These are prepared in accordance with the governing document, applicable accounting standards and the recommendations of Statement of Recommended Practice: Accounting and Reporting by Charities.

Objectives and principal activity

To advance the Presbyterian Faith in accordance with the Doctrinal Basis, in particular, but without limitation by the provision of theological and pastoral resources and training.

To see Christ-centered churches planted in the UK and throughout Europe. The church requires leaders who care little about the world's opinion if they may only please Christ: men for whom the Great Commission has such force that they will go out into the highways and hedges and compel people to come in.

To train faithful ministers who will unleash the word of God. The 'how' of faithful ministry is summed up in the words of our motto: "holding fast the faithful word" (Titus 1:9).

The church needs able ministers who are willing to uphold the truth and refute error - not proudly, but humbly and lovingly.

Public benefit

The Trustees are aware of the Charity Commission guidance on public benefit. In doing so, the Trustees confirm that the charity's activities wholly comply with this guidance. In particular, this is evidenced by the way we have sought to advance the Christian faith through public outreach and teaching ministries to as many members of the public, both at home and abroad, as we are able to reach.

Achievements and performance

In January 2021 Westminster Presbyterian Theological Seminary became independent of its parent church, All Saints Presbyterian; degree courses continue to be accredited by Greenville.

Westminster alumnus Florian Weiken, having added a research Masters to his MDiv, planted Zurich Presbyterian Church this year, bringing to two the number of church plants established by Westminster alumni in its short history.

A successfull period of recruitment and training resulted in the establishment of a stable and secure staff team with the capacity to support future growth. Increasingly effective outreach has led to international recognition for Westminster UK and a significant increase in expressions of interest from prospective students as a result. Five new students were recruited for the 2021-22 academic year. A notable element of the outreach included an international School of Theology, aimed at educating 'the man and woman in the pew'. Noteworthy pastor-scholars provided monthly interactive lectures in practical, biblical and systematic theology both online and in-person. Knox Interns Peter Winch and Yanooq Yaqub continued to serve at All Saints Presbyterian Church in Newcastle and the Asian Christian Fellowship in Gateshead respectively. Other students fulfilled preaching roles in a variety of churches nationally.

The seminary library was substantially increased due to a number of generous endowments.

2

Westminster Presbyterian Theological Seminary Trustees' report

Financial review

During the period the Charity's total income was £635,000

During the year the Charity's total expenditure £226,578

The Charity's funds at 31 August 2021 were £441,563.

Reserves policy

Westminster undertakes to ensure that reserves never fall below £50,000 of unencumbered funds.

Plans for future periods

The seminary proposes to expand its Faculty with the appointment of suitably qualified pastor-scholars, seeking to decrease the proportion of teaching delivered online.

The director will oversee a review of the curriculum, quality assurance measures and pedagogical training with a view to improving the coherence of the curriculum and the quality of teaching.

Structure, governance and management

The Charitable Incorporated Organisation (CIO) was formed under a constitution dated 26 May 2020.

The Trustees have the responsibility to ensure that all legal obligation are met in terms of the Charities Act 2011.

The daily operations of the charity are managed by a full time Executive Director who is accountable to the Board of Trustees.

The Bursar is accountable to the Executive Director and ensures that all legal responsibilites are met.

All other staff at the seminary report to the Bursar with a dotted line of accountability to the Executive Director.

New Trustees are appointed by existing Trustees.

The Charity's Trustees have considered and follow publication "A guide to conflicts of interest for Charity Trustees" as a matter of good practice.

Reference and administrative details

Westminster Presbyterian Theological Seminary (the CIO, the Charity) is a registered charity (registration number 1189657).

The governing body of the Charity is the board of Trustees, which currently comprises 5 members. The Trustees who acted during the year and up to the date of this report are shown on page 1.

The registered office of the Charity and details of its principle advisors are shown on page 1.

3

Westminster Presbyterian Theological Seminary Trustees' report

Statement of trustees' responsibilities

The Trustees are required to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Charity and of the surplus or deficit for that period. In preparing those accounts, the Trustees are required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and prepare the accounts on the going concern basis unless it is inappropriate to assume that the Charity will continue its activities.

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with statutory requirements and with Charity's constitution and rules. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud or other irregularities.

Disclosure of information to the independent examiner

So far as each Trustee at the date of approval of this report is aware:

Approval

10/01/2022

This report was approved by the Trustees on . . . . . . . . . . . . and signed on its behalf by:

. . . . . . . . . . . . . . . . . . . . . .

Dr D J MacLean Trustee

4

Westminster Presbyterian Theological Seminary Independent Examiner's Report

Independent examiner's report to the Trustees of Westminster Presbyterian Theological Seminary.

I report on the accounts of the Charity for the period ended 31 August 2021, which are set out on pages 6 to 13.

Respective responsibilities of the Trust and the examiner

As members of the Charity you are responsible for the preparation of the accounts. The Trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011(‘the 2011 Act’) and that an independent examination is needed.

It is my responsibility to:

Basis of this independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commissioner. That examination includes a review of the accounting records kept by the Charity and a comparison of the accounts presented with those records. It also includes considering any unusual items or disclosures in the accounts and seeking explanations from you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently, no opinion is given as to whether the accounts present ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner's statement

Since the gross income for the year exceeds the amount provided in section 145(3) of the Act, I confirm that I am qualified to act as Independent Examiner under the provisions of that section of the Act and that my qualification is as shown below.

In connection with my examination, no matter has come to my attention:

Mai L C Mak BSc. Hons. FCA Chartered Accountant Kinnair and Company Limited Chartered Accountants Aston House Newcastle Upon Tyne

12/01/2022

. . . . . . . . . . . . . . . .

5

Westminster Presbyterian Theological Seminary Statement of Financial Activities for the period from 26 May 2020 to 31 August 2021

Unrestricted
Notes
funds
£
Income
Voluntary income
2
607,952
Other income
27,048
Total income
635,000
Expenditure
Charitable activities:
- Staff
3
163,409
- Direct expenditure
4
36,653
- Indirect expenditure
5
17,754
- Legal and professional
6
6,909
- Depreciation
1,853
Total expenditure
226,578
Net movement in funds
408,422
Funds transferred from All Saints Presbyterian
Church
33,141
Total funds carried forward
441,563
Total
funds
2021
£
607,952
27,048
635,000
163,409
36,653
17,754
6,909
1,853
226,578
408,422
33,141
441,563

The Charity has no recognised gains or losses other than those shown in the Statement of Financial Activities. All of the activities of the Charity are classed as continuing.

6

Westminster Presbyterian Theological Seminary Balance Sheet as at 31 August 2021

Notes
Fixed assets
Tangible assets
8
Current assets
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due within one year
10
Net current assets
Total assets less current liabilities
Funds
Unrestricted funds:
- General Fund
11
- Capital Reserve
12
Total Trust funds
Net assets
9,821
435,143
444,964
(20,033)
2021
£
16,632
424,931
441,563
441,563
424,931
16,632
441,563

10/01/2022 These accounts were approved by the Trustees on . . . . . . . . . . . . and signed on its behalf by:

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dr D J MacLean Trustee

7

Westminster Presbyterian Theological Seminary Cash Flow Statement for the period ended 31 August 2021

Notes
Cashflows from operating activities
Net cash inflow from operating activities
14
Cashflows from investing activities
Change in cash and cash equivalents in the reporting
period
Cash and cash equivalents at 26 May 2020
Cash and cash equivalents at 31 August 2021
2021
£
435,143
-
435,143
-
435,143

8

Westminster Presbyterian Theological Seminary Notes to the Accounts for the period from 26 May 2020 to 31 August 2021

1 Accounting policies

Basis of preparation

The financial statements of the Charity have been prepared under the historical cost convention in accordance with the 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 (FRS102) (Charities SORP (FRS102)) and the Charities Act 2011.

Going concern

The Trustees assess whether the use of going concern is appropriate ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of one year from the date of authorisation of issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the forseeable future and there are no material uncertainties about the Charity's ability to contine as a going concern, thus they continue to adopt the going concern basis of accounting in the preparation of the financial statements.

A summary of the principal accounting policies, which have been consistently applied, is set out below.

Income

Voluntary income is recognised in the financial statements when it is received, or on an accruals basis where it can be assured with reasonable certainty and is receivable by the balance sheet date. Income tax recoverable on voluntary donations is recognised in the financial statements when it is receivable from HM Revenue and Customs.

All other incoming resources are included in the statement of financial activities on a cash received basis or on an accruals basis where they are assured with reasonable certainty and receivable by the balance sheet date.

Expenditure

Expenditure is charged on an accruals basis, inclusive of irrecoverable Value Added Tax.

The cost of charitable activities is analysed between the staff costs, the cost of providing ministry, and costs relating to the charity's property.

Fixed assets

Fixed assets are held at fair value.

Taxation

The Charity is exempt from Income Tax on its charitable activities but is not exempt from Value Added Tax. Irrecoverable VAT is included in the cost of those items to which it relates.

Fund accounting

The charity operates restricted and unrestricted funds. Restricted funds relate to amounts received which have been specified for a particular use by the donor. All other funds are unrestricted funds which the charity may use for its charitable purposes at its discretion. Within unrestricted funds, the charity may designate certain funds for specific purposes.

9

Westminster Presbyterian Theological Seminary Notes to the Accounts

for the period from 26 May 2020 to 31 August 2021

2 Income: Donations

UK Gifts and donations
Trustbridge USA
MTW USA
Expenditure: Staff
Staff wages
Intern wages
Bursary
Amount allocated to governance costs
Expenditure: Direct expenditure
Library
Faculty costs
School of Theology
Conference attendance
Website
Print media and adverts
Donation
2021
Unrestricted
£
36,495
558,817
12,640
607,952
2021
Unrestricted
£
127,954
17,204
18,251
163,409
(25,000)
138,409
2021
Unrestricted
£
7,575
19,509
2,640
4,931
54
944
1,000
36,653
2021
Total
£
36,495
558,817
12,640
607,952
2021
Total
£
127,954
17,204
18,251
163,409
(25,000)
138,409
2021
Total
£
7,575
19,509
2,640
4,931
54
944
1,000
36,653

3 Expenditure: Staff

4 Expenditure: Direct expenditure

10

Westminster Presbyterian Theological Seminary Notes to the Accounts

for the period from 26 May 2020 to 31 August 2021

5 Expenditure: Indirect expenditure

Rent and rates
Refreshments
Stationery and office consumables
Furniture and equipment
Telephone
Software licences
Postage
6
Expenditure: Legal and professional fees
Legal fees
Accountancy
IT consultancy
7
Staff costs
Gross wages
Employers NIC
Pension costs
Bursary
2021
Unrestricted
£
13,711
563
583
678
184
1,960
75
17,754
2021
Unrestricted
£
2,604
2,989
1,316
6,909
133,267
10,272
1,619
18,251
163,409
2021
Total
£
13,711
563
583
678
184
1,960
75
17,754
2021
Total
£
2,604
2,989
1,316
6,909
133,267
10,272
1,619
18,251
163,409

No member of staff earned £60,000 or more during the year.

There were no payments made to the Trustees during the year for reimbursed expenses and wages.

Average number of staff during the year 2,021
Staff Number
10

11

Westminster Presbyterian Theological Seminary Notes to the Accounts

for the period from 26 May 2020 to 31 August 2021

8
Tangible fixed assets
Cost
Additions
At 31 August 2021
Depreciation
Charge for the year
At 31 August 2021
Net book value
At 31 August 2021
9
Debtors
Prepayments and accrued income
Amounts due from All Saints Presbyterian Church
10 Creditors: amounts falling due within one year
Pension creditor
Other creditors
Accruals and deferred income
11 General fund
Net incoming (outgoing) resources
Transfer from All Saints Presbyterian Church
Transfer of capital items from general fund
Net transfers to the capital reserve
At 31 August
Plant and
equipment
£
18,485
18,485
1,853
1,853
16,632
2021
£
6,150
3,671
9,821
2021
£
468
16,925
2,640
20,033
2021
£
408,422
33,141
(18,485)
1,853
424,931

12

Westminster Presbyterian Theological Seminary Notes to the Accounts

for the period from 26 May 2020 to 31 August 2021

12 Capital reserve
Transfer from the general fund
Net transfers from the general fund
At 31 August
2021
£
18,485
(1,853)
16,632

13 Related party transactions

There were no related party transactions during the period.

14
Asset additions
Depreciation charges and loss on disposal of assets
Decrease / (increase) in debtors
(Decrease) / increase in creditors
Net cash (used in ) / provided by operating activities
Assets transferred from All Saints Presbyterian Church.
Funds transferred from All Saints Presbyterian Church.
Reconciliation of net income/(expenditure) to net cash flow
from operating activities
Net income/(expenditure) for the reporting period (as per the
statement of financial activities
2021
£
408,422
33,141
(5,813)
(12,672)
1,853
(9,821)
20,033
435,143

13