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2022-08-31-accounts

REGISTERED CHARITY NUMBER: 309672

TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

FOR

WESTMINSTER COLLEGE OXFORD TRUST

Ashdown Hurrey Auditors Limited Statutory Auditors 20 Havelock Road Hastings East Sussex TN34 1BP

WESTMINSTER COLLEGE OXFORD TRUST

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

Page
Reference and Administrative Details 1
Trustees' Report 2 to 4
Statement of Trustees' Responsibilities 5
Report of the Independent Auditors 6 to 8
Statement of Financial Activities 9
Statement of Financial Position 10
Statement of Cash Flows 11
Notes to the Statement of Cash Flows 12
Notes to the Financial Statements 13 to 24

WESTMINSTER COLLEGE OXFORD TRUST

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31 AUGUST 2022

TRUSTEE Westminster College Oxford Trust Limited
CUSTODIAN TRUSTEES Trustees for Methodist Church Purposes
DIRECTORS OF Revd Canon Sir R Waller (Chairman)
TRUSTEE COMPANY Mrs A Bolton
Professor B J Clack
Ms A J Gowman Appointed 1 September 2021
Revd Dr J R Hustler
Mrs C M Lines
Professor D R Matthews Appointed 1 September 2021
Dr C Norris
Revd Canon Dr M Wellings
PRINCIPAL ADDRESS c/o 20 Havelock Road
Hastings
East Sussex
TN34 1BP
REGISTERED CHARITY NUMBER 309672
AUDITORS Ashdown Hurrey Auditors Limited
Statutory Auditors
20 Havelock Road
Hastings
East Sussex
TN34 1BP

Page 1

WESTMINSTER COLLEGE OXFORD TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022

The Trustee presents its report with the financial statements of the Charity for the year ended 31 August 2022.

The Trustee has adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities' which is also in accordance with Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and activities of the trust

The Charity's trust deed requires that the trust property shall be used and occupied for the purposes of promoting and advancing education and in particular but not by way of limitation the training of teachers and the advancement of further and higher education.

Since April 2000, the objects of the Charity have been achieved through a lease and other agreements with Oxford Brookes University. Under these agreements, the Charity's main charitable asset, the Harcourt Hill Estate, was used by Oxford Brookes University for educational purposes in return for a peppercorn rent and an undertaking by the University to resource and maintain specified Church-related and educational activities. These included the provision of chaplaincy and the management of various collections owned by the Charity or other parties.

On 26 July 2017 a new 99-year lease for the Harcourt Hill Estate was signed with the University. Under this lease, the Charity received an initial premium of £3,750,000 and annual rental income of at least £420,000 which is available to fund educational activities either at Oxford Brookes University or elsewhere.

The main activity of the Charity is to make grants which promote or advance education and to monitor the purposes for which those grants are used. Until the new lease was signed in July 2017, the Charity's key activity was ensuring that the undertakings made as part of the old lease and associated arrangements were complied with and respected.

The Charity also holds endowment funds for the benefit of students studying at Oxford Brookes University, which are allocated in accordance with the appropriate terms of reference.

Public benefit

The Trustee has had regard to the Charity Commission's guidance on public benefit.

The educational activities advanced by the Charity represent a substantial public benefit. This is achieved through academic activities such as the initial training and continuing professional development of teachers and teaching assistants, the promotion of research and dissemination of its results. All may enjoy the open spaces of the Harcourt Hill Estate, and the Leisure Centre and Sports Facilities are accessible to local schools and organisations and to the general public, through a membership scheme. The specialist archives and art collections loaned to the university are open to the public by appointment.

Page 2

WESTMINSTER COLLEGE OXFORD TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022

OBJECTIVES AND ACTIVITIES Management and governance arrangements

The Charity is governed by its Trust Deed drawn up and dated 7 March 1955 as amended, most recently on 5 November 2001. The Trustee is Westminster College Oxford Trust Limited, which is governed by Articles of Association as amended on 2 October 2013. The directors are appointed by the Methodist Church, normally for an initial term of three years with the possibility of re-appointment for a further three years, and beyond that in exceptional circumstances. The directors may also co-opt further members of the Board, and Revd Dr Martin Wellings has recently been co-opted onto the Board, as a project is being discussed which requires his specialist knowledge. Directors do not receive any formal training but are selected based on their relevant experience and knowledge. New directors receive an informal induction through meetings with existing Board members and the provision of appropriate background information.

The Charity has no employees and all key decisions are made by the Board. Board members are in regular electronic contact and there are at least three formal Board meetings each year, for which detailed papers are prepared and distributed in advance. There are annual reports from the Dean of Faculty, the Head of Education, the Chaplain and the senior staff of the Oxford Centre for Methodism and Church History, whose work is currently supported by funding from the Trust. The Board continues to engage with the University in its ongoing use and possible development of the campus.

The Trustee provides an annual governance report to the Methodist Council. It has retained operational links with the Church throughout the year through the presence of the Secretary of the Methodist Conference who is an ex-officio member of the Board of Directors.

The Board of Directors (the Trustee) uses the services member of the Connexional Team at Methodist Church House to convene and service meetings of the directors, and to conduct business as directed by the Trustee between meetings.

ACHIEVEMENT AND PERFORMANCE

Achievements and performance of the trust and plans for future periods

The effects of the global pandemic are diminishing. Oxford Brookes is back to full operation, and working practices at Harcourt Hill are, in the main, as they were pre-pandemic. Footfall through the Centre for Methodism and Church History remains low; the work undertaken by the team there is however much valued by the trust.

During the year ended 31 August 2022, the Charity:

The key activities supported by the Charity at Oxford Brookes University in the year ended 31 August 2022 were:

The Charity's plans for future periods include:

In discharging its responsibility to administer the endowment funds of the former Westminster College, the Charity has continued to seek to ensure that the funds are invested well and that the bursaries are awarded where there is real need and merit in accordance with the wishes of those who made the original scholarship bequests.

Page 3

WESTMINSTER COLLEGE OXFORD TRUST

TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2022

FINANCIAL REVIEW

For the year under review, incoming resources related to investment income and rent (including the release of an element of the lease premium received). A generous donation of £1 million was received, to be spent as the Board members see fit within the objects of the Charity.

The Charity suffered some instability in the value of its general and endowment equity investments, largely due to the war in Ukraine. Outgoing resources related to grants made from the Charity's restricted and unrestricted funds, costs associated with the lease renewal, management fees paid to the Trustee and investment management expenses. The five year commitment to MAST of £180k grant per annum was fully discharged ahead of schedule.

RESERVES POLICY

The Charity has sought to maintain such a level of reserves so as to ensure its future existence and meet its administrative expenses out of the investment income. Under the new lease, the rental payments are sufficient to meet expenses and to make grants and the Charity has also received a significant sum in the form of the lease premium. The Trust's policy is to retain in reserves sufficient funds to meet its obligations for any three months of the year. In the year ended 31 August 2022, reserves comfortably exceeded this level. The Trustee is confident that the current level of reserves is adequate and at a higher level than will be retained in the longer term.

The free reserves position at the year end is £130,147, which represents the unrestricted net current assets. In addition, the Charity has access on notice of more than one month to its unrestricted investments of £4,228,822.

INVESTMENT POLICY

Following the strategic review of investment policy, the overall allocation for the general funds is currently as follows:

Suggested range
Equity
60 - 80%
Fixed Interest 5 - 25%
Property 5 - 25%
Cash 0 - 10%

The Trustee continues to monitor investment of its endowment and restricted funds and invests in equity funds that element of restricted income which it does not expect to be spent within the next one to two years.

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.

Approved by order of the board of trustees on 21 March 2023 and signed on its behalf by:

Mrs A Bolton

For and on behalf of Westminster College Oxford Trust Limited

Page 4

WESTMINSTER COLLEGE OXFORD TRUST

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2022

The trustees 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) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF WESTMINSTER COLLEGE OXFORD TRUST

Opinion

We have audited the financial statements of Westminster College Oxford Trust (the 'charity') for the year ended 31 August 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 charity'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.

Emphasis of matter

During the accounting period the charity received a donation of £1 million from a South Korean individual, who wished to remain anonymous.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors 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 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.

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:

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF WESTMINSTER COLLEGE OXFORD TRUST

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

We have been appointed as auditors 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 a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

During the planning stage of this audit we considered the likelihood of irregularities around laws and regulations relevant to the charity, including enquiry of management and those charged with governance. These were also discussed during the audit planning meeting held by the team. We reviewed the charity's systems and controls in place, and formed an assessment as to their operational effectiveness.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that relate to: -The financial reporting standard; FRS102

-Landlords and Tennants Act 1985

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above.

During the course of this audit the team discussed this area with trustees of the charity and also carried out a review of legal expenses for evidence of any issues.

We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach.

We are therefore of the opinion that given the risk level identified, our procedures planned and undertaken, are adequate for detecting irregularities.

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 Report of the Independent Auditors.

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF WESTMINSTER COLLEGE OXFORD TRUST

Use of our report

This report is made solely to the charity's trustees, as a a body, in accordance with Section 144 of the Charities Act 2011 and Regulations made under Section 154 of that Act. 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's trustees as a body, for our audit work, for this report, or for the opinion we have formed.

Ashdown Hurrey Auditors Limited Statutory Auditors 20 Havelock Road Hastings East Sussex TN34 1BP

Date: 6 June 2023

Page 8

WESTMINSTER COLLEGE OXFORD TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2022

Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS
FROM
Donations and legacies
3
1,000,000
Investment and rental income
4
559,389
Total
1,559,389
EXPENDITURE ON
Raising funds
Investment management costs
5
12,329
12,329
Charitable activities
6
Grants to individuals
-
Grants to institutions
25,041
Other
15,094
Total
52,464
Net gains on investments
17,608
NET INCOME
1,524,533
Other recognised
gains/(losses)
Gains/(losses) on revaluation of
fixed assets
(310,136)
Net movement in funds
1,214,397
RECONCILIATION OF FUNDS
Total funds brought forward
11,384,303
TOTAL FUNDS CARRIED
FORWARD
12,598,700		 Restricted
funds
£
-
7,611
7,611
(11)
(11)
4,070
-
1,474
5,533
-
2,078
(5,202)
(3,124)
65,009
61,885		 Endowment
fund
£
-
-
-
-
-
-
-
-
-
-
-
(30,192)
(30,192)
281,625
251,433		 31.8.22
Total
funds
£
1,000,000
567,000
1,567,000
12,318
12,318
4,070
25,041
16,568
57,997
17,608
1,526,611
(345,530)
1,181,081
11,730,937
12,912,018		 31.8.21
Total
funds
£
-
544,811
544,811
8,947
8,947
4,028
342,941
9,178
365,094
8,033
187,750
775,075
962,825
10,768,112
11,730,937

The notes form part of these financial statements

Page 9

WESTMINSTER COLLEGE OXFORD TRUST

STATEMENT OF FINANCIAL POSITION 31 AUGUST 2022

31.8.22 31.8.21
Unrestricted Restricted Endowment Total Total
fund funds fund funds funds
Notes £ £ £ £ £
FIXED ASSETS
Tangible assets 12 51,300 - - 51,300 51,300
Investments
Investments 13 4,228,822 43,317 251,433 4,523,572 4,485,316
Investment property 14 11,750,000 - - 11,750,000 11,750,000
16,030,122 43,317 251,433 16,324,872 16,286,616
CURRENT ASSETS
Debtors 15 353,675 (26,390) - 327,285 100,878
Cash at bank 209,243 44,958 - 254,201 209,844
562,918 18,568 - 581,486 310,722
CREDITORS
Amounts falling due within one year 16 (432,771) - - (432,771) (595,978)
NET CURRENT ASSETS 130,147 18,568 - 148,715 (285,256)
TOTAL ASSETS LESS CURRENT
LIABILITIES 16,160,269 61,885 251,433 16,473,587 16,001,360
ACCRUALS AND DEFERRED
INCOME 17 (3,561,569) - - (3,561,569) (4,270,423)
NET ASSETS 12,598,700 61,885 251,433 12,912,018 11,730,937
FUNDS 18
Unrestricted funds 12,598,700 11,384,303
Restricted funds:
Dobson Theology Fund 2,455 4,750
Speight Undergraduate Fund 26,292 27,407
Postgraduate Bursary Fund 33,138 32,852
61,885 65,009
Endowment funds 251,433 281,625
TOTAL FUNDS 12,912,018 11,730,937

The financial statements were approved by the Board of Trustees and authorised for issue on 21 March 2023 and were signed on its behalf by:

Mrs A Bolton

For and on behalf of Westminster College Oxford Trust Limited

The notes form part of these financial statements

Page 10

WESTMINSTER COLLEGE OXFORD TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

31.8.22 31.8.21
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 (156,465) (1,131,277)
Net cash used in operating activities (156,465) (1,131,277)
Cash flows from investing activities
Purchase of fixed asset investments (596,999) (253,065)
Sale of fixed asset investments 230,821 280,036
Rents received 464,147 458,879
Interest received 783 2,355
Dividends received 102,070 83,577
Net cash provided by investing activities 200,822 571,782
Change in cash and cash equivalents in the
reporting period 44,357 (559,495)
Cash and cash equivalents at the beginning
of the reporting period 209,844 769,339
Cash and cash equivalents at the end of the
reporting period 254,201 209,844

The notes form part of these financial statements

Page 11

WESTMINSTER COLLEGE OXFORD TRUST

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2022

1.
RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
31.8.22
£
Net income for the reporting period (as per the Statement of Financial
Activities)
1,526,611
Adjustments for:
Gain on investments
(17,608)
Interest received
(783)
Dividends received
(102,070)
Rents received
(464,147)
Increase in debtors
(226,407)
Decrease in creditors
(872,061)
Net cash used in operations
(156,465)		 31.8.21
£
187,750
(8,033)
(2,355)
(83,577)
(458,879)
(75,356)
(690,827)
(1,131,277)

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.21 Cash flow At 31.8.22
£ £ £
Net cash
Cash at bank 209,844 44,357 254,201
209,844 44,357 254,201
Total 209,844 44,357 254,201

The notes form part of these financial statements

Page 12

WESTMINSTER COLLEGE OXFORD TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

1. STATUTORY INFORMATION

Westminster College Oxford Trust is an unincorporated charity, registered in England & Wales. The charity's registered number and registered office address can be found in the Report of the Trustees.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

In preparing the financial statements, the trustees are required to make an assessment of the ability of the charity to continue as a going concern. The trustees have prepared a cash flow forecast for the charity which covers the 12 month period from the date of signing these financial statements. Against the backdrop of the COVID-19 Pandemic a "reverse stress" test has been applied to the forecasts, seeking to establish the level of liquidity headroom the charity is expected to have during this 12 month going concern period.

On the basis of these forecasts and the fact that the charity has substantial net assets, the trustees are confident that the charity has adequate resources to continue in operational existence and to meet its liabilities as they fall due for the foreseeable future. As a result of the above, the trustees have concluded that it remains appropriate to adopt a going concern basis of preparation in these financial statements.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Investments

Investments in managed funds are valued at the year-end bid-price value.

Investments in works of art are valued at market values, determined on the basis of periodic external valuations. In the intervening years between valuations, the Trustee assesses whether the basis for the valuation remains reasonable.

Investment property

Investment property is shown at most recent valuation on the basis of open market value. Any gains/losses arising from changes in market value are recognised on the Statement of Financial Activities.

A full external valuation is performed at least every five years. The Trustee considers the reasonableness of this valuation in the intervening years.

No depreciation is provided in respect of freehold land and buildings held for investment purposes.

Taxation

The trust is a registered charity and is therefore exempt from income tax and corporation tax on most of its activities. The charity receives no similar exemption in respect of value added tax.

continued...

Page 13

WESTMINSTER COLLEGE OXFORD TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022

2. ACCOUNTING POLICIES - continued

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Endowment Funds

Deposits and managed fund investments representing the funds that have been invested through the charity have been allocated the appropriate portion of the interest and other investment income earned by the charity. The income received on these endowments is considered restricted funds for expenditure, in line with the original donor's wishes.

Use of restricted funds

An appropriate proportion of the administration costs based on the proportion of the secretary's time spent administering these funds is charged to restricted funds.

Recognition of income

All income from deposits, sale of assets and other sources is credited to the Statement of Financial Activities on an accruals basis. Distributions from pooled investment vehicles are recognised when received.

Rental income from assets leased under operating leases is recognised on a straight-line basis over the term of the lease. Lease premiums received on the grant of operating leases are recognised on a straight -line basis over the lease term.

Grant income is recognised in the financial statements when there is evidence of entitlement to the grant, receipt is probable and its amount can be measured reliably.

Judgements and estimates

In categorising lease as finance leases or operating leases, the Trustee makes judgements as to whether significant risks and rewards of ownership have transferred to the lessee, where the Group is the lessor. This is relevant to the lease between The Trust and Oxford Brookes University (OBU) as shown in Note 21, which has been classified as an operating lease.

The key judgement in the accounts relates to the valuation of the investment property which is the subject of the lease with OBU. Details are provided in Note 14.

3.

DONATIONS AND LEGACIES

31.8.22 31.8.21
Unrestricted Restricted Endowment Total Total
funds funds funds funds funds
£ £ £ £ £
Donations 1,000,000 - - 1,000,000 -

The above donation relates to an amount received from a South Korean individual, who wished to remain anonymous. The Directors of the Corporate Trustee have taken appropriate actions in respect of the validity and appropriateness of this transaction.

continued...

Page 14

WESTMINSTER COLLEGE OXFORD TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022

4. INVESTMENT AND RENTAL INCOME

Unrestricted
funds
£
Rents received
464,147
Income receivable from
investments in managed
funds
94,586
Deposit account interest
656
559,389
5.
INVESTMENT MANAGEMENT COSTS
Unrestricted
funds
£
Support costs
12,329
6.
CHARITABLE ACTIVITIES COSTS
Grants to individuals
Grants to institutions		 Restricted
Endowment
funds
funds
£
£
-
-
7,484
-
127
-
7,611
-
Restricted
Endowment
funds
funds
£
£
(11)
-		 31.8.22
31.8.21
Total
Total
funds
funds
£
£
464,147
458,879
102,070
83,577
783
2,355
567,000
544,811
31.8.22
31.8.21
Total
Total
funds
funds
£
£
12,318
8,947
Grant
funding of
activities
(see note
7)
£
4,070
25,041
29,111		 31.8.21
Total
funds
£
458,879
83,577
2,355		 31.8.21
Total
funds
£
458,879
83,577
2,355
544,811
29,111

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

7. GRANTS PAYABLE

Grants to individuals
Grants to institutions		 31.8.22
£
4,070
25,041
29,111		 31.8.21
£
4,028
342,941
346,969

continued...

Page 15

WESTMINSTER COLLEGE OXFORD TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022

8. SUPPORT COSTS

SUPPORT COSTS
Finance
£
Investment management costs
12,318
Other resources expended
-
12,318		 Governance
Other
costs
£
£
-
-
334
16,234
334
16,234		 Totals
£
12,318
16,568
28,886

The sole Trustee of the charity, Westminster College Oxford Trust Limited, invoiced a management charge to the charity of £1,474 (2021: £1,438) in respect of expenses incurred in administering the charity.

Support costs, included in the above, are as follows:

31.8.22 31.8.21
Investment Other
management resources Total Total
costs expended activities activities
£ £ £ £
Bank charges 12,318 - 12,318 8,947
Trustees' remuneration etc - 334 334 -
Auditors' remuneration - 6,300 6,300 5,700
Auditors' remuneration for non audit work - 2,040 2,040 1,440
Management fees - 1,474 1,474 1,438
Legal and professional fees - 6,420 6,420 600
12,318 16,568 28,886 18,125

9. AUDITORS' REMUNERATION

AUDITORS' REMUNERATION
31.8.22 31.8.21
£ £
Fees payable to the charity's auditors for the audit of the charity's financial statements 6,300 5,700
Auditors' remuneration for non audit work 2,040 1,440

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2022 nor for the year ended 31 August 2021.

Trustees' expenses

Trustees' expenses paid for the year ended 31 August 2022 was £334 (2021: £nil). These expenses constituted travelling expenses reclaimed by Trustees attending board meetings for the Trust, postage and meeting expenses.

During the year, four directors of the Trustee company reclaimed expenses.

continued...

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WESTMINSTER COLLEGE OXFORD TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022

11.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
fund
funds
£
£
INCOME AND ENDOWMENTS FROM
Investment and rental income
537,820
6,991
EXPENDITURE ON
Raising funds
Investment management costs
8,411
536
8,411
536
Charitable activities
Grants to individuals
-
4,028
Grants to institutions
332,941
10,000
Other
9,178
-
Total
350,530
14,564
Net gains on investments
8,033
-
NET INCOME/(EXPENDITURE)
195,323
(7,573)
Other recognised gains/(losses)
Gains on revaluation of fixed assets
705,149
10,274
Net movement in funds
900,472
2,701
RECONCILIATION OF FUNDS
Total funds brought forward
10,483,831
62,308
TOTAL FUNDS CARRIED FORWARD
11,384,303
65,009
12.
TANGIBLE FIXED ASSETS
COST
At 1 September 2021 and 31 August 2022
NET BOOK VALUE
At 31 August 2022
At 31 August 2021		 Endowment
fund
£
-
-
-
-
-
-
-
-
-
59,652
59,652
221,973
281,625		 Total
funds
£
544,811
8,947
8,947
4,028
342,941
9,178
365,094
8,033
187,750
775,075
962,825
10,768,112
11,730,937
Works of
Art
£
51,300
51,300
51,300

The charity continues to own a number of works of art donated over the years. These are on permanent loan to Oxford Brookes University. A valuation by Mallams, dated 16 July 2018, valued these assets at £51,300. The Trustee has considered the valuation and deems it to remain reasonable at 31 August 2022.

No works of art were acquired or disposed of during the financial year.

continued...

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WESTMINSTER COLLEGE OXFORD TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022

13. FIXED ASSET INVESTMENTS

Analysis of fixed assets investments are as follows:-

UNRESTRICTED FUNDS Overseas
Investment Fund		 UK Equity Fund Units
Gilt Fund		 Corporate Bond
Fund
£ £
£		 £
VALUATION
At 1 September 2021 1,512,802 1,561,893
81,923		 324,142
Additions in year 323,002 171,997
22,000		 80,000
Disposals in year (45,007) (30,008)
-		 -
Net gain/loss on revaluation
or disposal		 (120,179) (180,987)
(19,466)		 (60,509)
At 31 August 2022 1,670,618 1,522,895
84,457		 343,633
UNRESTRICTED FUNDS -
Continued		 Property
Investment Fund		 Total
£
4,155,172
596,999
(230,821)
(292,528)
4,228,8232
£
VALUATION
At 1 September 2021 674,412
Additions in year -
Disposals in year (155,806)
Net gain/loss on revaluation
or disposal		 88,613
At 31 August 2022 607,219
ENDOWMENT FUNDS Speight
Undergraduate
Fund		 Postgradate
Bursary
Fund		 Postgradate
Bursary
Fund		 Dobson
Theology
Fund		 Total
£
281,625
-
(30,192)
251,433
Investment - Equity Funds £ £ £
VALUATION
At 1 September 2021 135,795 112,104 33,726
Additions in year - - -
Disposals in year - - -
Net gain/loss on revaluation
or disposal		 (14,558) (12,018) (3,616)
At 31 August 2022 121,237 100,086 30,110
RESTRICTED FUNDS Speight
Undergraduate
Fund		 Postgraduate
Bursary
Fund		 Dobson
Theology
Fund		 Total
Investment - Equity Funds £ £ £ £
VALUATION
At 1 September 2021 17,861 27,374 3,284 48,519
Additions in year - - - -
Disposals in year - - - -
Net gain/loss on revaluation
or disposal		 (1,915) (2,935) (352) (5,202)
At 31 August 2022 15,946 24,439 2,932 43,317
Cash less current liabilities
At 31 August 2022 10,346 8,699 (477) 18,568
Total Restricted Funds 26,292 33,138 2,455 61,885

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WESTMINSTER COLLEGE OXFORD TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022

14. INVESTMENT PROPERTY

INVESTMENT PROPERTY
FAIR VALUE
At 1 September 2021
and 31 August 2022
NET BOOK VALUE
At 31 August 2022
At 31 August 2021		 £
11,750,000
11,750,000
11,750,000

The historic cost of the re-valued freehold assets is £508,031.

The Trustee for Methodist Church Purposes as custodian holds the land and buildings in trust for the primary purpose of training teachers. The Trustee for Methodist Church Purposes reserves rights over transactions relating to trust property.

Following a merger that took place on 6 April 2000, the majority of the assets were transferred to Oxford Brookes University and a lease was granted between Oxford Brookes University and the Trustee for Methodist Church Purposes in respect of the land and buildings.

A professional valuation was performed as at 15 July 2020. The reversionary interest was valued by Andrew Lockhart FRICS MCI Arb of VSL and Partners, Kidlington, Oxfordshire at £11,750,000 on the basis of open market value.

On 26 July 2017, a full repairing lease with an effective date of 1 August 2017 was granted to Oxford Brookes University in respect of land and buildings. A lease premium of £3,750,000 was received by Westminster College Oxford Trust on 26 July 2017. The premium has been deferred and will be recognised over the life of the lease.

15.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.8.22 31.8.21
£ £
Trade debtors 6,268 -
Amount owed from connected body corporate 321,017 100,878
327,285 100,878

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WESTMINSTER COLLEGE OXFORD TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Deferred income
Accrued expenses
ACCRUALS AND DEFERRED INCOME		 31.8.22
£
36,380
70,098
326,293
432,771		 31.8.21
£
28,372
70,098
497,508
595,978
31.8.22 31.8.21
£ £
Deferred income relating to lease premium: 2-5 years 151,515 151,515
Accrued expenses: 2-5 years 42,000 712,975
193,515 864,490
Deferred income relating to the lease premium: more than 5 years 3,368,054 3,405,933
3,561,569 4,270,423
MOVEMENT IN FUNDS
Unrestricted funds
Unrestricted Funds
Restricted funds
Dobson Theology Fund
Speight Undergraduate Fund
Postgraduate Bursary Fund
Endowment funds
Endowment funds
TOTAL FUNDS		 At 1.9.21
£
11,384,303
4,750
27,407
32,852
65,009
281,625
11,730,937		 Net
movement
in funds
£
1,214,397
(2,295)
(1,115)
286
(3,124)
(30,192)
1,181,081		 At
31.8.22
£
12,598,700
2,455
26,292
33,138
61,885
251,433
12,912,018

17. ACCRUALS AND DEFERRED INCOME

18. MOVEMENT IN FUNDS

continued...

Page 20

WESTMINSTER COLLEGE OXFORD TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022

18. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
Unrestricted Funds
Restricted funds
Dobson Theology Fund
Speight Undergraduate Fund
Postgraduate Bursary Fund
Endowment funds
Endowment funds
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
Unrestricted Funds
Restricted funds
Dobson Theology Fund
Speight Undergraduate Fund
Postgraduate Bursary Fund
Endowment funds
Endowment funds
TOTAL FUNDS		 Incoming
resources
£
1,559,389
853
3,520
3,238
7,611
-
1,567,000		 Resources
expended
£
(52,464)
(2,796)
(2,720)
(17)
(5,533)
-
(57,997)
At 1.9.20
£
10,483,831
5,357
22,625
34,326
62,308
221,973
10,768,112		 Gains and
losses
£
(292,528)
(352)
(1,915)
(2,935)
(5,202)
(30,192)
(327,922)
Net
movement
in funds
£
900,472
(607)
4,782
(1,474)
2,701
59,652
962,825		 Movement
in funds
£
1,214,397
(2,295)
(1,115)
286
(3,124)
(30,192)
1,181,081
At
31.8.21
£
11,384,303
4,750
27,407
32,852
65,009
281,625
11,730,937

continued...

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WESTMINSTER COLLEGE OXFORD TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022

18. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming
Resources
resources
expended
£
£
Unrestricted funds
Unrestricted Funds
537,820
(350,530)
Restricted funds
Dobson Theology Fund
785
(2,086)
Speight Undergraduate Fund
3,253
(2,253)
Postgraduate Bursary Fund
2,953
(10,225)
6,991
(14,564)
Endowment funds
Endowment funds
-
-
TOTAL FUNDS
544,811
(365,094)
A current year 12 months and prior year 12 months combined position is as follows:
At 1.9.20
£
Unrestricted funds
Unrestricted Funds
10,483,831
Restricted funds
Dobson Theology Fund
5,357
Speight Undergraduate Fund
22,625
Postgraduate Bursary Fund
34,326
62,308
Endowment funds
Endowment funds
221,973
TOTAL FUNDS
10,768,112		 Gains and
losses
£
713,182
694
3,782
5,798
10,274
59,652
783,108
Net
movement
in funds
£
2,114,869
(2,902)
3,667
(1,188)
(423)
29,460
2,143,906		 Movement
in funds
£
900,472
(607)
4,782
(1,474)
2,701
59,652
962,825
At
31.8.22
£
12,598,700
2,455
26,292
33,138
61,885
251,433
12,912,018

continued...

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WESTMINSTER COLLEGE OXFORD TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022

18. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Gains and Movement
resources expended losses in funds
£ £ £ £
Unrestricted funds
Unrestricted Funds 2,097,209 (402,994) 420,654 2,114,869
Restricted funds
Dobson Theology Fund 1,638 (4,882) 342 (2,902)
Speight Undergraduate Fund 6,773 (4,973) 1,867 3,667
Postgraduate Bursary Fund 6,191 (10,242) 2,863 (1,188)
14,602 (20,097) 5,072 (423)
Endowment funds
Endowment funds - - 29,460 29,460
TOTAL FUNDS 2,111,811 (423,091) 455,186 2,143,906

Description of Restricted Funds

Dobson Theology Fund: Legacy received from Dr Clifford Briggs Dobson deceased for the School of Theology with the request that the money is used to provide a bursary for a good student on the Christian Studies Distance Learning Programme who wishes to pursue his or her studies further.

Speight Undergraduate Fund: Bequest for providing assistance to one or more deserving students who in consequence of circumstances for which he or she is in no way responsible would otherwise be unable for financial reasons to take up or continue his or her course of study. Also to be utilised for an annual prize for the student presenting the best paper in the final examinations for the certificate awarded by the College subject to conditions.

Postgraduate Bursary Fund: Award to be made annually to one or more postgraduate or post-experience students registered for a validated course of Oxford Brookes University (Faculty of Humanities and Social Sciences).

Endowment Fund: Made up of the three funds summarised above.

19. RELATED PARTY DISCLOSURES

The Charity has one corporate Trustee and is therefore ultimately controlled by Westminster College Oxford Trust Limited.

At the balance sheet date, the balance owed to the Charity by its corporate Trustee, Westminster College Oxford Trust Limited amounted to £347,407 (2021: £121,724). This is included in debtors and relates to unrestricted funds only. The loan is interest free and repayable on demand.

At the balance sheet date, the balance owed by the Charity to its corporate Trustee, Westminster College Oxford Trust Limited amounted to £26 , 390 (2021: £20,846). This is included in debtors and relates to restricted funds only. The loan is interest free and repayable on demand.

continued...

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WESTMINSTER COLLEGE OXFORD TRUST

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2022

20. GRANTS PAID DURING THE YEAR

The following grants were paid to individuals during the year:-

The following grants were paid to individuals during the year:-
RESTRICTED FUNDS 31.8.22 31.8.21
£ £
Speight Undergraduate Fund 2,000 2,000
Dobson Theology Fund 2,070 2,028
4,070 4,028
The following grants were issued to institutions during the year:-
UNRESTRICTED FUNDS 31.8.22 31.8.21
£ £
Oxford Brookes University - Oxford Centre for Methodism and Church History 41 307,941
Methodist Chaplaincy at Oxford Brookes University 25,000 25,000
25,041 332,941
RESTRICTED FUNDS
Postgraduate Bursary Fund: Oxford Brookes University - Academic Staff Sabbaticals - 10,000
- 10,000
25,041 342,941

21. LEASE TO OXFORD BROOKES UNIVERSITY

On 26 July 2017, a full repairing lease with an effective date of 1 August 2017 was granted to Oxford Brookes University in respect of land and buildings. A lease premium of £3,750,000 was received by Westminster College Oxford Trust on 26 July 2017. The premium has been deferred and will be recognised over the life of the lease.

An annual market rent is to be received from Oxford Brookes University of £420,000 per annum. This is to be reviewed every 5 years under an upwards only rent review.

The first rent review was carried out in the accounting period, this is effective from 1 August 2022 with an annual rent receivable amount of £495,218.

The future minimum lease payments receivable under this non-cancellable operating lease for each of the following periods are:

are:
31.8.22 31.8.21
£ £
Less than 1 year 495,218 420,000
Within 2-5 years 1,980,872 1,680,000
More than 5 years 44,033,134 37,761,172
46,033,134 39,861,172

Page 24