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2021-08-31-accounts

Charity Registration No. 288011

Company Registration No. 01758668 (England and Wales)

ST AUGUSTINE'S COLLEGE OF THEOLOGY ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

ST AUGUSTINE'S COLLEGE OF THEOLOGY

LEGAL AND ADMINISTRATIVE INFORMATION

BOARD OF TRUSTEES

Ex-officio Trustees

The Rev'd Dr Alan Gregory Principal Elected Trustees The Rev'd Jonathan Croucher Chair The Rev'd Daphne Clifton Dr John Moss Mr Andrew Strawson Company Secretary The Rev'd Canon Rebecca Swyer The Rev'd John Irwin Treasurer

The trustees for the period of this report are set out above and are, for the Companies Act purposes, Directors of the Company. All Trustees listed above have held office since the last Report of the Trustees.

COUNCIL OF REFERENCE

Members of the Council of Reference

The Rev'd Nigel Collins The Rev'd Wendy Robins (appointed January 2021) The Rev'd Canon Leanne Roberts The Rev'd Canon Katrina Barnes The Rev'd Canon Lisa Barnett Mr Bradley Smith The Rev'd Prebendary Dr Neil Evans The Rev'd Canon Gary Jenkins Mrs Susan Gregory (appointed January 2021) The Rev'd Dr Edward Dowler

Canterbury Diocese Southwark Diocese Southwark Diocese Rochester Diocese Chichester Diocese Chichester Diocese London Diocese General Synod Staff Representative Co-opted

ST AUGUSTINE'S COLLEGE OF THEOLOGY

LEGAL AND ADMINISTRATIVE INFORMATION

Charity number 288011
Company number 01758668
Registered office 52 Swan Street
West Malling
Kent
ME19 6JX
Auditor Crossley Financial Accounting Limited
Star House
Star Hill
Rochester
Kent
ME1 1UX
Bankers HSBC Bank Plc
Medway Street
Chatham
Kent
ME4 4DN
Solicitors Winch & Winch
5 New Road Avenue
Chatham
Kent

ST AUGUSTINE'S COLLEGE OF THEOLOGY

CONTENTS

Page
Trustees' report 1 - 5
Independent auditor's report 6 - 8
Statement of financial activities 9
Statement of financial position 10 - 11
Statement of cash flows 12
Notes to the financial statements 13 - 24

ST AUGUSTINE'S COLLEGE OF THEOLOGY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

The trustees present their report and financial statements for the year ended 31 August 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's Memorandum and Articles of Association , the Companies Act 2006 and “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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2019) .

Objectives and activities

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit and in particular to its supplementary public benefit guidance, and are satisfied that St Augustine’s meets such guidance.

In its governing document, the object of St Augustine’s is to “advance the Christian religion by the promotion of theological education and training”.

In 2006 the Board of Trustees clarified this object in terms of St Augustine’s core purpose as being “to serve its sponsoring churches by providing programmes of ministerial formation and theological education that are accessible to people living or working in London and the South-East”.

At present, St Augustine’s fulfils its core purpose through four major activities:

In order to fulfil its core purpose, St Augustine’s needs to do the following on a year by year basis:

The structure of governance and management set out further in the report is designed to support these aims and is effective in enabling them to be met.

ST AUGUSTINE'S COLLEGE OF THEOLOGY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Achievements and performance GOING CONCERN

After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

REVIEW OF ACTIVITIES

During the year to 31 August 2021, 67 (2020: 73) Ministerial Students were in training for ordination at St Augustine’s. There were 15 Readers in Training from the Diocese of Canterbury (2020 : 11); 16 from the Diocese of Southwark (2020: 17) and 8 from the Diocese of Chichester (2020 : 7). In addition the Independent pathway continued to expand with 84 Independent Students (2020 : 78).

Overall recruitment for 2020-21, saw another good number of ordinand applications (30) (2020: 31). The number of applications received by August 2021, for the 2021-22 academic year has also been consistent (30) despite the ramifications of COVID. One of the major impacts of COVID yet again has been the reduction in expenditure on Residentials, because of which St Augustine’s will return a surplus in 2021. Independent student applications have also maintained the growth trend seen over the past three years, Further research, conducted during and after lockdown and involving outside consultation, has led to a more data-driven approach to recruitment.

During 2020-21, evening classes and teaching days went online. With the introduction of lockdown restrictions in connection with COVID-19, all teaching was moved online for the year. This involved a continuing investment of time, as well as some small financial outlay, to transpose education, very much designed for face-to-face learning, into forms suitable for the new medium. Judging from student feedback and the overall parity of marks between this year and previous ones, our efforts have again borne fruit. Most significant for the future have been the experiments in online learning for a wider audience outside that of registered students. This has included a number of online spiritual ‘retreats’ which have generated a great deal of support and some significant giving to a bursary fund for students with limited resources for meeting tuition costs. All our residential weekends including the annual week-long residential, were delivered online. Future planning includes continuing provision of online teaching as an option for Certificate students and for learners outside London and the Southeast.

The college continues to benefit from the excellent setting and facilities at its West Malling site. The office remained open during lockdown and various ways were introduced for maintaining library services.

Fundraising continued, raising £19, 603 for the Tattersall Fund. Somewhat surprisingly, lockdown continued to stimulate a significant increase in fundraising. Using the opportunities offered by online learning, we not only offered retreats that yielded donations but also service for worship via Facebook, social events, and a series of quiz shows.

The Trustees take their responsibility under the Charities (Protection and Social Investment) Act 2016 seriously. The Trustees have reviewed the Charity Commission publication ‘Charity fundraising: a guide to trustee duties’ (CC20), and, having considered the College’s activities, are confident that its obligations are being fulfilled. The College does not work with any commercial participators or professional fundraisers. The majority of fundraising is from students and alumni of St Augustine’s and visitors to its website. The College does not actively solicit donations from the general public more widely. The trustees are not aware of any complaints made in respect of fundraising during the period.

ST AUGUSTINE'S COLLEGE OF THEOLOGY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

From September 2015 Durham University has accredited all new programmes and students under the Church of England’s Common Awards programme. Under this accreditation, St Augustine’s offers certificate, diploma (both undergraduate and graduate) and degree courses (BA and MA). As of September 2019, the college piloted a Ph.D. programme in partnership with the Durham Department of Theology. St Augustine’s programmes are also accredited as training routes for ordained ministry in the Church of England by the Churches’ Quality in Formation Panel. On behalf of the Dioceses of Canterbury, Southwark, Rochester, and Chichester, St Augustine’s offers accredited courses for Reader Ministry in the Both the University and the Church operate their own quality management and enhancement procedures in relation to the activities of the College, including annual exam boards, approval of programme documentation and periodic inspection/audit.

Financial review

RESULTS FOR THE YEAR

The Statement of Financial Activities shows a significant improvement in the operating result with a surplus of £ 1 59,956 compared with a surplus of £ 34,636 in 20 20 . A significant part of the surplus results from a reduction in the number of residential events during the year. This continues in the current year (2021) but is unlikely to be repeated.

The Trustees' investment policy is to maximise the yield on its financial investments held subject to maintenance of their capital value in real terms. Investments have been realised in recent years in order to fund St Augustine's continued operations given the deficits which it has suffered. Trustees are pleased to note that in recent years its investments have met these objectives.

BALANCE SHEET

The College’s Balance Sheet remains strong following the sale of residential properties in previous years. Net Assets rose to £ 7 82,361 (20 20 : £ 622,406 ), reflecting the surplus for the year and Net Current Assets increased to £ 367,79 8 (20 20 : £ 204,969).

RESERVES POLICY

The Trustees have approved a policy on its Reserves, which states that the charity needs sufficient free reserves to enable it to meet its charitable obligations in the eventuality of an unexpected revenue shortfall.

Free reserves are defined by the Charity Commission as Unrestricted Funds available to spend on the general purposes of the charity and therefore, excluding those Designated for particular purposes and those already utilised in purchasing tangible assets.

The Trustees believe that the level of reserves freely available for its general purpose should be sufficient to accommodate St Augustine’s continuing needs and to maintain its freehold and leasehold premises at an appropriate level, having regard to the bank finance facilities available to it. The Trustees review this policy annually.

At the end of the year ended 31 August 2021 the Unrestricted Reserves stood at £7 17,896 (2020: £589,789) of which £ 244,352 (2020: £261,968) has been used to finance tangible fixed assets, leaving £473,54 4 (2020: £327,821) as free reserves.

MEMBERS' LIABILITY

On liquidation of the company, any residual surplus is to be transferred to the Central Board of Finance of the Church of England. In the event of a deficiency, Members then in office are each required to contribute a sum not exceeding £1.

ST AUGUSTINE'S COLLEGE OF THEOLOGY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Structure, governance and management

St Augustine’s College of Theology’s governing document is its Memorandum and Articles of Association (5 June 2018, It was incorporated as a Company Limited by Guarantee on 4 October 1983.

On September 1 st 2 018, the new governance structure, approved by Council earlier that year, was implemented. This created a smaller Board of Trustees and a Council of Reference consisting of representatives of designated stakeholders and some members nominated for particular skills and experience. The four core dioceses have appointed two people to the Council of Reference, with other participating dioceses appointing one. Each core diocese also appointed a Member of the Company, the members being responsible for the election of trustees. The members may, but do not have to be, appointed to the Council of Reference. The Board of Studies has continued as a committee of the Board of Trustees.

The college employs a permanent staff team of 7.8 full time equivalents (FTE). The team is led by the Principal, the Reverend Dr Alan Gregory. The staff team consists of 5 members of academic staff (4.2 FTE) together with 4 members of administrative staff (3.6 FTE). In addition to this team there are a number of associate tutors, as well as part time staff, involved in specific areas of the College's work. During the past, the college has introduced regular bi-annual professional development seminars for all its teaching staff, including associates.

St Augustine’s offices are based at Pax House, 52 Swan Street, West Malling, ME19 6QX. St Augustine’s London office is based in Trinity House, the offices of the Diocese of Southwark. Mid week teaching activities take place in West Malling (evening classes and weekly teaching days) and in Southwark (evening classes), with residential events held mostly at Malling Abbey, with one in Canterbury and another in Ashburnham, Sussex.

The staff team has a regular programme of meetings that address issues of monitoring, review, planning and development as well as routine business. There are also regular staff student liaison meetings and all student cohorts are represented on the Board of Studies.

Principal risk and uncertainties

The Trustees review the risks to which the charity is exposed and systems have been established to mitigate those risks. The external risks to funding are dependent on a viable number of students choosing the course for their training. To mitigate this risk regular liaison with Diocesan Directors of Training and Ministry Division to ensure the content of the programmes meet the needs of both dioceses and the Church of England. The college has also made progress pursuing stronger links with three dioceses who, until, now have rarely sent students. Furthermore, more systematic efforts to recruit ‘independent’ students will help to offset the risk of a decline in Church-funded students. Internal risks are mitigated by the implementation of a series of procedures and controls that are reviewed in the risk register.

The Trustees are responsible for the management of all risks faced by the College. The risk management policy is reviewed regularly by the Trustees. As a consequence of last year’s review (2020), the risk register has been thoroughly revised and expanded, with trustees and staff appointed to oversee the specific areas of risk.

Pay and remuneration of senior staff

Ordained members of staff are remunerated according to the Archbishops’ Council of the Church of England’s published remuneration scale for ordained college staff (the “Lichfield Scale”).

ST AUGUSTINE'S COLLEGE OF THEOLOGY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Statement of trustees' responsibilities

The trustees, who are also the directors of St Augustine's College of Theology for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the 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 year.

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.

Auditor

The trustees' r eport was approved by the Board of Trustees.

Mr A Strawson

Trustee Dated: 10 February 2022

ST AUGUSTINE'S COLLEGE OF THEOLOGY

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF ST AUGUSTINE'S COLLEGE OF THEOLOGY

Opinion

We have audited the financial statements of St Augustine's College of Theology (the ‘charitable company’) for the year ended 31 August 2021 which comprise the statement of financial activities, the statement of financial position, the statement of cash flows and the 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

ST AUGUSTINE'S COLLEGE OF THEOLOGY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ST AUGUSTINE'S COLLEGE OF THEOLOGY

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

Based on our understanding of the company and industry, we identified that the principle risks of non-compliance with laws and regulations related to compliance with Charity Commission requirements and we considered the extent to which non-compliance might have a material effect on the financial statements of the company.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

In addition, we considered provisions of other laws and regulations that do not have a direct impact on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These include data protection, employment, environmental and health and safety regulations.

We evaluated managements incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to revenue recognition, posting inappropriate journals entries to increase income or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements such as useful economic life, deferred income and sabbatical provisions.

ST AUGUSTINE'S COLLEGE OF THEOLOGY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ST AUGUSTINE'S COLLEGE OF THEOLOGY

Audit response

Audit procedures performed by the engagement team included:

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, by for example, forgery, or intentional misrepresentation, or though collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

S Meah FCCA (Senior Statutory Auditor)
for and on behalf of Crossley Financial Accounting Limited 11 April 2022
Chartered Accountants
Statutory Auditor Star House
Star Hill
Rochester
Kent

Crossley Financial Accounting Limited is eligible for appointment as auditor of the charitable company by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

ST AUGUSTINE'S COLLEGE OF THEOLOGY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
-
52,603
Income from c haritable
activities
4
713,171
-
Investments
5
7,626
26
Total income
720,797
52,629
Expenditure on:
Charitable activities
6
605,431
20,781
Net gains/(losses) on
investments
12,742
-
Gross transfers
between funds
-
-
Net movement in funds
128,108
31,848
Fund balances at 1
September 2020
589,788
32,617
Fund balances at 31
August 2021
717,896
64,465		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
52,603
5,767
7,505
713,171
670,640
-
7,652
8,685
85
773,426
685,092
7,590
626,212
638,739
8,066
12,742
(11,241)
-
-
(20,000)
20,000
159,956
15,112
19,524
622,405
574,677
13,093
782,361
589,789
32,617		 Total
2020
£
13,272
670,640
8,770
692,682
646,805
(11,241)
-
34,636
587,770
622,406

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

ST AUGUSTINE'S COLLEGE OF THEOLOGY

STATEMENT OF FINANCIAL POSITION

AS AT 31 AUGUST 2021

Notes
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Provisions for liabilities
Net assets
Income funds
Restricted funds
17
Unrestricted funds - general		 2021
£
53,517
393,660
447,177
(79,379)		 £
244,352
171,211
415,563
367,798
783,361
(1,000)
782,361
64,465
717,896
782,361		 2019
£
73,524
192,142
265,666
(60,697)		 £
261,968
158,469
420,437
204,969
625,406
(3,000)
622,406
32,617
589,789
622,406

ST AUGUSTINE'S COLLEGE OF THEOLOGY

STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 AUGUST 2021

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 August 2021, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 10 February 2022

The Rev’d J Croucher

Trustee

Company Registration No. 01758668

ST AUGUSTINE'S COLLEGE OF THEOLOGY

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2021

Notes
Cash flows from operating activities
Cash generated from operations
20
Investing activities
Interest received
Net cash generated from investing
activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Relating to:
Cash at bank and in hand
Bank overdrafts included in creditors
payable within one year		 2021
£
7,652		 £
189,740
7,652
-
197,392
192,142
389,534
393,660
(4,126)		 2020
£
8,770		 £
71,813
8,770
-
80,583
111,559
192,142
192,142
-

ST AUGUSTINE'S COLLEGE OF THEOLOGY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

Charity information

St Augustine's College of Theology is a private company limited by guarantee incorporated in England and Wales. The registered office is 52 Swan Street, West Malling, Kent, ME19 6JX.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and “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 (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charitable company . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

ST AUGUSTINE'S COLLEGE OF THEOLOGY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

1.5 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 60 years straight line Leasehold improvements 33% straight line Office equipment 33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.6 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

1.7 Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company 's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

ST AUGUSTINE'S COLLEGE OF THEOLOGY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

1.8 Provisions

Provisions are recognised when the charitable company has a legal or constructive present obligation as a result of a past event, it is probable that the charitable company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i s measured at present value , the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

1.9 Retirement benefits

The company participates in the defined benefits scheme section of the Church Workers Pension Fund (CWPF) for lay staff and the Church of England Funded Pensions Scheme (CEFPS) also known as the Clergy Pension scheme for Clergy and licensed lay workers. The schemes are administered by the Church of England Pensions Board which holds the assets of schemes separately from those of the Employer and other participating employers.

It is not possible to attribute the scheme's assets and liabilities to specific employers. The schemes are considered to be multi employer schemes as described in FRS 102 and as such contributions are accounted for as if the schemes were defined contribution schemes. The pension costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year, plus any impact of deficit contributions.

1.10 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2 Critical accounting estimates and judgements

In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical accounting estimates and assumptions:

There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Critical areas of judgment:

No significant judgements have had to be made by management in preparing these financial statements, other than the recognition of a rent premium paid of £92,500. The rent premium is being released as a cost over 10 years, based on the intention of the charity to remain in the property for at least 10 years.

ST AUGUSTINE'S COLLEGE OF THEOLOGY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

3 Donations and legacies

Unrestricted
Restricted
funds
funds
general
2021
2021
£
£
Donations, gifts and fundraising
-
22,603
Grants
-
30,000
-
52,603
For the year ended 31 August 2020
5,767
7,505
Income from c haritable activities
Fee income		 Total
2021
£
22,603
30,000
52,603
2021
£
713,171		 Total
2020
£
13,272
-
13,272
13,272
2020
£
670,640

4 Income from c haritable activities

5 Investments

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
general general
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Investment income -
other local investments 7,626 26 7,652 8,685 85 8,770

ST AUGUSTINE'S COLLEGE OF THEOLOGY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

6 Charitable activities

Education
Bursaries
2021
2021
£
£
Residential weekend conferences and Summer
School
4,174
-
Staff salaries, including lecturing fees and other
associated staff costs
320,950
-
National insurance
28,032
-
Pension cost
67,720
-
Provision of bursaries
-
20,781
420,876
20,781
Share of support costs (see note 7)
181,483
-
Share of governance costs (see note 7)
3,072
-
605,431
20,781
Analysis by fund
Unrestricted funds - general
605,431
-
Restricted funds
-
20,781
605,431
20,781
For the year ended 31 August 2020
Unrestricted funds - general
638,739
-
Restricted funds
-
8,066
638,739
8,066		 Total
2021
£
4,174
320,950
28,032
67,720
20,781
441,657
181,483
3,072
626,212
605,431
20,781
626,212		 Total
2020
£
91,147
289,951
16,363
61,965
8,066
467,492
176,415
2,898
646,805
638,739
8,066
646,805
638,739
8,066
646,805

ST AUGUSTINE'S COLLEGE OF THEOLOGY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

7 Support costs

Support
costs
Governance
costs
£
£
Depreciation
17,617
-
Academic travel and
training
29,702
-
Books & journals
3,870
-
Office expenses
27,560
-
Administration costs
10,234
-
Rent of premises and
utilities
40,758
-
Equipment costs
17,142
-
Publicity and marketing
costs
27,633
-
Legal and professional
charges
6,967
-
Audit fees
-
3,072
181,483
3,072
Analysed between
Charitable activities
181,483
3,072		 2021
£
17,617
29,702
3,870
27,560
10,234
40,758
17,142
27,633
6,967
3,072
184,555
184,555		 Support
costs
Governance
costs
£
£
7,407
-
27,238
-
4,587
-
23,550
-
6,263
-
69,109
-
13,463
-
17,904
-
6,894
-
-
2,898
176,415
2,898
176,415
2,898		 2020
£
7,407
27,238
4,587
23,550
6,263
69,109
13,463
17,904
6,894
2,898
179,313
179,313

Governance costs includes payments to the auditors of £ 2,982 (2020- £ 2,898 ) for audit fees.

8 Trustees

Trustees remuneration and expenses

The staff costs, in note 10 , includes emoluments, employers' national insurance contributions and employers' pension contributions for 1 Trustee (2020 - 1 member) . From time to time other Trustees are paid visiting lecturers fees, but the amounts are not significant.

Key management personnel compensation

The total paid to Key management personnel is £ 63,792 (Rev'd Dr A Gregory) (20 20 - £ 66,984 ).

9 Employees

Number of employees

The average monthly number of employees during the year was:

2021 2020
Number Number
Staff 15 14

ST AUGUSTINE'S COLLEGE OF THEOLOGY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

10 Staff costs

Staff costs analysis
Academic salaries and related costs
Administration salaries and related costs
Visiting lecturers' fees
Staff premises costs
Social security costs
Pension costs
Total		 2021
£
183,285
82,492
35,449
21,723
28,032
67,720
418,701		 2020
£
148,709
86,621
31,229
23,934
16,363
61,965
368,821

11 Tangible fixed assets

Freehold land
and buildings
Leasehold
improvements
Office
equipment
£
£
£
Cost
At 1 September 2020
283,993
15,948
28,615
At 31 August 2021
283,993
15,948
28,615
Depreciation and impairment
At 1 September 2020
22,365
15,948
28,274
Depreciation charged in the year
17,276
-
341
At 31 August 2021
39,641
15,948
28,615
Carrying amount
At 31 August 2021
244,352
-
-
At 31 August 2020
261,628
-
340		 Total
£
328,556
328,556
66,587
17,617
84,204
244,352
261,968

ST AUGUSTINE'S COLLEGE OF THEOLOGY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

12 Fixed asset investments

Cost or valuation
At 1 September 2020
Additions
At 31 August 2021
Carrying amount
At 31 August 2021
At 31 August 2020
Investments at fair value comprise:
Unlisted investments
13
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
14
Loans and overdrafts
Bank overdrafts
Payable within one year		 Unlisted
investments
£
158,469
12,742
171,211
171,211
158,469
2021
2020
£
£
171,211
158,469
2021
2020
£
£
885
1,269
50,875
69,375
1,757
2,880
53,517
73,524
2021
2020
£
£
4,126
-
4,126
-

ST AUGUSTINE'S COLLEGE OF THEOLOGY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

15
Creditors: amounts falling due within one year
Notes
Bank overdrafts
14
Trade creditors
Other creditors
Accruals and deferred income
Deferred income
Deferred income at 1 September 20 20
Resources deferred during the year
Amounts released from previous years
Deferred income at 31 August 20 21
 2021
£
4,126
107
345
74,801
79,379
-
63,950
-
63,950		 2020
£
-
650
345
59,702
60,697

ST AUGUSTINE'S COLLEGE OF THEOLOGY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

15
Provisions for liabilities
Sabbaticals
Movements on provisions:
At 1 September 2020
Utilisation of provision
At 31 August 2021		 2021
2020
£
£
1,000
3,000
Sabbaticals
£
3,000
(2,000)
1,000

The academic staff of the company are entitled to grants for sabbatical leave following four years of teaching for the Institute for up to a maximum of £1,000.

ST AUGUSTINE'S COLLEGE OF THEOLOGY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

17 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Balance at
1 September resources expended 1 September resources expended 31 August
2019 2020 2021
£ £ £ £ £ £ £ £
Tattersall Fund 13,093 7,590 (8,066) 20,000 32,617 19,629 (20,781) 31,465
Anonymous Donation - - - - - 30,000 - 30,000
W A Blagden Donation - - - - - 3,000 - 3,000
13,093 7,590 (8,066) 20,000 32,617 52,629 (20,781) 64,465

Tattersall Fund

The Tattersall fund was set up to help fund lay people study Theology. Independent students can ask for help to cover the cost of tutor fees and books from this fund. The fund includes donations received from Robinson Lambert.

Anonymous Donation

The donation received is to support a ministerial collaboration, an initiative of the parish of St Martin in the Fields.

W A Blagden Donation

The donation received is towards the continuation and development of the online retreats.

ST AUGUSTINE'S COLLEGE OF THEOLOGY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

18 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31 August 2021 are
represented by:
Tangible assets
244,352
-
Investments
171,211
-
Current assets/(liabilities)
303,333
64,465
Provisions
(1,000)
-
717,896
64,465		 Total
2021
£
244,352
171,211
367,798
(1,000)
782,361		 Total
2020
£
261,968
158,469
204,969
(3,000)
622,406

19 Operating lease commitments

At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years
20
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in debtors
Increase in creditors
Increase/(decrease) in provisions
Cash generated from operations		 2021
£
38,000
60,000
120,000
218,000
2021
£
159,956
(7,652)
(12,742)
17,617
20,005
14,556
(2,000)
189,740		 2020
£
38,000
60,000
135,000
233,000
2020
£
34,636
(8,770)
11,241
7,407
14,090
11,209
2,000
71,813