CUDDESDON Financial Statements Year Ended 31 July 2024 Charity Registration Number". 309714 Ripon College Cuddesdon Trustee Report and Financial Statements For the Year Ended 31 July 2024 Contents Page Charity Reference and Administrative Details Governors, Annual Report Independent Auditor's Report Statement of Financial Activities 10 13 Balance Sheet 14 Statement of Cash Flows 15 Notes to the Financial Statements 16 Ripon College Cuddesdon Governors, Annual Report Year Ended 31 July 2024 Charity number 309714 Governors Chair The Rt Revd Michael Ipgrave Principal The Rt Revd Humphrey Southern (ex offficio) Appointed Revd Mark Bodeker (appointed by Bishop of Oxford) Canon Lucy Docherty (appointed by General Synod) The Venerable Guy Elsmore (appointed by Bishop of Oxford) Revd Lindsay Llewellyn-MacDuff (appointed by General Synod - resigned September 2024} Revd Canon Valerie Plumb (appointed by General Synod February 2025) Co-opted Sir Tony Baldry DL (Chair of Governance Committee) Rt Revd Lynne Cullens Mr Philip Gee (Chair of Estates and Personnel Committee) Canon Judith Knight (resigned May 2024) Revd Neil Patterson Revd Professor Jane Shaw {elected September 2024- Chair of Education and Formation Committee) Revd Professor Jennifer Strawbridge Mr Patrick Walker (Chair of Finance Committee) staff-elected Dr Rebecca Dean Revd Dr Sarah Brush Student-elected Ms Polly Honeychurch (resigned May 2024) Mr Dov Whittle (resigned May 2024) Mr Michael Stokes (appointed May 2024, resigned May 2025) Ms Joy Beauchamp (appointed May 2024, resigned May 2025) Mr Archie Warsap (appointed May 2025) Mr Terry Palmer (appointed May 2025) Board Secretary Revd Canon Prof Mark Chapman (resigned September 2024) Treasurer Mr Clint Mcvea (Bursar) Registered office Ripon College Cuddesdon, Oxford, OX44 9EX Auditor Wenn Townsend 30 St Giles, Oxford, OX13LE Bankers Nat West Bank Willow Court, Minns Business Park, 7 West Way, OXFORD OX2 OJB Investment managers CCLA Investment Management Ltd, Senator House, 85 Queen Victoria street, London, EC4V 4ET Ripon College Cuddesdon Governors, Annual Report Year Ended 31 July 2024 The Governors present their report and the audited financial statements of the charity for the year 31 July 2024. The Governors have adopted the provisions of the Statement of Recommended Practice (SORP) 'Accounting and Reporting by Charities" (FRS 102) in preparing the annual report and financial statements of the charity- Objectives and activities Objectives The objects of the College (as set out in the Royal Charter, dated 11th December 2001 } are to provide, carry on and maintain a college or colleges for the training of candidates for Holy Orders in the Church of England and such other students of theology and other germane Christian studies as the Governors may permit. The current strategy ft)r delivering these objectives is summarised as follows.. Providing excellent training and preparation for ministry in the Church of England and the Anglican Communion and to equip individual students for ordained, reader and other lay ministry in a variety of parochial and other contexts, preparing them to become creative and competent leaders within the wider church and the world. This encompasses maintaining high quality in academic and formational training,. nurturing communities that support this learning- and seeking good levels of student numbers which can sustain a variety of viable training options in different geographical locations. Being a centre for excellence in academic research. We continue to host conference and study days, manage research projects and attract visiting fellows and overseas visitors. We continue to encourage research from our teaching staff through regular periods of study leave. Broadening the institution through developing the successful and rich partnerships supporting our training in Cuddesdon, Gloucester, and Ludlow, and where possible developing new courses and partnerships, in co-operation with Dioceses and others. Income generation with a view to establishing a sound financial underpinning of our activities. This involves fundraising to support research and student bursaries as well as improvements and developments to buildings and estates. It also involves increasing the income generated from external users of facilities and developing new courses and educational opportunities. Charitable Activities We offer full-time residential and full and part-time non-residential training to ordinands sponsored by the Church of England. Students undertake academic theological study in addition to ministerial and spiritual formation which prepares students for their future ministry roles. During the year non-residential training continued to be offered through the full-time context based pathway (CBP) and part time pathway (PTP) based at Cuddesdon, the Cuddesdon Gloucester and Hereford (CGH) pathway based in Gloucester and Ludlow and, until June 2024, the Portsmouth Pathway Cuddesdon (PPC) based in Portsmouth. In partnership with the Church Mission Society {CMS) we share in the training and formation of candidates for ordained pioneer ministry in the Church of England. We provide a breadth of training opportunities for ordained and lay ministers within the Church of England, recognising the importance this has in encouraging vocational ministry and responding to the broader challenges of the Resourcing Ministerial Formation initiative. CGH and the Portsmouth Pathway train readers alongside ordinands, providing creative opportunities for interaction and learning. Part time study for those exploring theology is provided through CGH in the Dioceses of Gloucester and Hereford through the Introduction to Christian Mission Course. Each of our centres provide opportunities for established ministers and others to develop their theological and ministerial learning as independent students. We also run a variety of short courses and retreats which attract overseas as well as UK delegates. We run conferences, study days and seminars on a wide range of subjects as well as hosting visiting fellows, exchange students and sabbatical visitors. Fund-raising standards information We raise funds from students, alumni and those using or visiting the site in Cuddesdon to support its activities. This is done in a variety of ways including encouraging regular donations (for example the Cuddesdon 500 initiative), sales of books and other items, and periodic appeals for major projects. We have not engaged the services of a professional fundraiser or commercial participator. No complaints were received during the year relating to fundraising (2023.. nil). Ripon College Cuddesdon Governors, Annual Report Year Ended 31 July 2024 Public benefit statement The Governors have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. The Governors are satisfied that our activities exist for the public benefit, particularly in respect of the advancement of religion and education, and that this is demonstrated by the achievements and performance of the College during the year (as outlined below). We provide a public benefit by training candidates for Holy Orders in the Church of England, by training people for a wide variety of lay ministries, including Reader ministry, and by encouraging the wider study of theology. Training is provided to full time students and part-time students both formally and informally in groups. We provide lectures, materials and library databases. Students are supported by mentoring and coaching, and by the provision of student welfare, accommodation and meals. In a variety of ways, the students, families are involved so that their partners and children can engage more in the student's education and prepare them to be able to support the student as they become leaders of the wider church community. We provide a public benefit in academic research through the provision of conferences, study days and managing commissioned research projects. The academic staff publish books and articles in journals which are peer-reviewed and we maintain an academic library with access for academics and students. We provide a public benefit in raising awareness and understanding of religious beliefs and practices by providing our facilities for the use of appropriate organisations and groups, and through organising onferences, seminars and lectures. In addition, we provide long or short stay retreats for those wishing to undertake research or further study, or simply to be rested and refreshed, in support of their ministry and practise of their beliefs. Our activities promote the study of religious teachings and practices and scriptures., promote prayer, praise and study- provide religious instruction and supervision; encourage and support pastoral work. and support the leaders of the Anglican Communion. Through our various pathways we seek to play a role in the life of the places in which our activities are based. This is particularly so in Cuddesdon where staff and students share in SeNi￿S in the church, the annual village fete is hosted in our grounds and we aim to welcome and support our neighbours, on occasion making facilities available to hire. Similarly, we are involved in the wider life of the communities that share facilities in Portsmouth (ceased in June 2024), Gloucester and Ludlow. Achievements and performance A significant feature of the year 202312024 was the Periodic External Review which was conducted in November 2023, with the report received at the end of the calendar year. The reviewers formed a broadly positive view of the work of Cuddesdon across a range of aspects- academic, formational, pastoral - while also making some helpful and far-reaching recommendations. These focus especially on strategic direction, governance and marketing and outreach. An Action Plan has been developed to address the PER recommendations, with several already fulfilled and others receiving attention. During the year we made a successful bid to the National Ministry Team Innovation Fund to enable the establishment in the 2025126 academic year of a new Children's, Young People's and Families, Workers training pathway (directly serving a key aspect of the Vision and Strategy of the national church). The development of this programme, together with a programme supporting the ministry of established Incumbents in relation to youth work, will be significant priorities for 2024125. In terms of our core purposes in 2023124, we again placed all leaving ordinands and lay ministry students successfully in curacy and other ministerial placements, including students on our Portsmouth Pathway, which was brought to a successful and gracious conclusion as priorities in the client diocese changed. Further work was done during the year in conjunction with Oxft)rd diocese to develop a new Ordained Assistant Minister pathway for the diocese, which launches as a pilot in September 2024. Financial review (including reserves policy) Unrestricted Funds A deficit budget had been set for 2023124 of £151,950 on the College's General Fund account. This reflected the continued low intake of students that has affected the sector as a whole. The planned deficit included additional financial support from National Ministry Team to support TEI'S through a revised block grant Ripon College Cuddesdon Governors, Annual Report Year Ended 31 July 2024 Service Level Agreement. Effective financial control, along with continued growih in conference and events activity and a significant legacy meant that financial performan￿ was better than expected, with a small surplus of £34,000 being incurred on the General Fund at the end of the year, significantly assisted by unexpected legacy income of £75,000. Total unrestricted income for the year was £2,014,578 which was an increase of £155,874 on the previous year. Following the adoption of FRS 102 a defined benefit pension scheme liability has been recognised in the accounts in previous years. In July 2023 the liability had fallen to zero, and there has been no change on this in the financial year. The value of the liability is taken from information provided by the Church of England Pension Board as at 31 December each year. The College is unable to assess the extent of any movement in its liability from 31 December 2023 to 31 July 2024. As noted below in line with its reserves policy we need to generate revenue surpluses in order to secure the College's future as well as to reduce long-term borrowing and invest in capital improvement. The ability to do so remains highly dependent on maintaining and increasing student numbers as well as seeking to maximize other sources of income. Restricted Funds In addition to the regular investment income from endowment funds (£22,725), the other significant restricted income consisted of regular donations for future refurbishment work and alleviating student financial hardship. The most significant restricted funds remaining at the yearond were £49,087 being reserves inherited on the merger with the West of England Ministerial Training Course (WEMTC), £44,977 in the refurbishment fund and £46,132 of donations raised for supporting visiting fellows and students, and sabbaticals. The College organises a biennial annual conference on behalf of the Congregational Christian Music Committee which is funded by grants and delegate fees. During the year ended 31 July 2024, the College received income amounting to £1,348 (2023: £26,041) and made disbursements and transfers of £24,970 (2023.. £5.900) from this income. The balance of funds being held on behalf of the committee at the year*nd amounted to £7,994 (2023- £31,616) and is included as a restricted fund. The last conference was held in early August 2023, with the next scheduled for 2025. Investment policy and performance The College's investment policy is to increase the real value of income generated whilst protecting the real value of capitsl after inflation. The current investment objective is to achieve a return of 40/0 plus inflation, although it is recognized that this is a challenging target if inflation increases significantly. During 2017118 we reconfirmed our commitment to meet the ethical investment criteria used by the Church of England and as a result moved our investments to funds managed by CCLA. We continue to review the performance of the funds on a regular basis. Reserves policy The College has net assets of £9.4m, a figure that includes freehold properties recorded at cost of £10.6m. Net current assets at the year-end were £1,030,522, of which £173,436 represents restricted funds held for specified purposes. The College regularly monitors its financial and cash flow position and is careful to ensure that it has sufficient working capital and that there are banking facilities available, to meet any foreseeable expenditure. The current approved reserves policy is to aim to hold a minimum of three months of General Fund revenue expenditure as free reserves (approximately £450,000). Reserves are held in order to protect against temporary falls in income, due for example to below target recruitment, or unbudgeted additional expenditure such as pension deficits or major unexpected repairs. Reserves would also assist with the transitional costs of potential restructuring arising from the national review of ministerial education. If free reserves are accumulated in excess of this target the Governors would consider applying them to invest in capital improvement which would help to secure our long-term future. At the year-end unrestricted general fund reserves were £331,121 (2023: £378,970). This is below the minimum target and it remains a priority to aim for general fund surpluses in future in order to increase reserves to facilitate investment and provide options for debt repayment. Overall available unrestricted and designated funds are £857,086 (2023- £416,686) which provides reassurance whilst action is taken to meet Ripon College Cuddesdon Governors, Annual Report Year Ended 31 July 2024 the minimum target. The Propety Designated Fund £7,277,766 (2023: £7,305,965) can only be realised by disposing of tangible fixed assets and is not available to support the operations of the College. We continue to hold net current assets (in addition to its general fund free reserves) sufficient to cover all restricted funds. Risk management We consider, evaluate and record the major areas of risk to which we are exposed, assessing both the likelihood and impact of those risks crystallising, together with the measures in place to manage and mitigate such risks. The process of identification and assessment of risk, the risks identified and the measures for mitigation are reviewed at least annually by the Finance Committee. The risks which are currently assessed as scoring highest, and the plans to address them include.. Lower student numbers across the various pathways with the consequent reduction in income. Mitigation includes strengthening the admissions procedures and continued nelworking with Di0￿seS and potential students to raise the profile of the College. Unsuccessful renegotiation of existing borrowing arrangements ne￿SSItatIng the earlier than planned repayment of the loans. Mitigation includes close liaison with existing borrowers to secure mutually beneficial terms, as well as estsblishing a sound debt repayment plan over the next five years. Our response to the coronavirus pandemic highlighted the need to invest in new technology for the delivery of online educational activities, and also to upgrade legacy administrative systems that proved difficult to operate under remote working. A new student administration system has been identified and will be implemented during autumn 2024. The principal risks relating to expenditure are that there may be additional pension deficits to be funded and there may be significant unexpected property maintenance expenditure. We continue to focus on safeguarding and follow the advice of the House of Bishops and national guidance for TEls. During the year safeguarding training was completed for all students in accordance with the requirements of the national safeguarding team and 23 safeguarding disclosures were investigated and where appropriate referred to the other agencies. The Principal and Senior Leadership Team keep the risks under review and ensure that proportionate mitigation strategies continue to be in place. Plans for future periods Approximately 75 % of the College's income comes from the training of ordinands funded by National Ministry Team and the students, dioceses (including provision of accommodation). Our major focus remains student recruitment and sustaining high student numbers across all of our pathways. The number of ordinands in 2024125 has improved on the previous year 2023124, increasing to 79 across all pathways. Recruitment to the full time residential pathway continues to be difficult with one funded ordinand and one independent student starting in September 2024 (the number of full time residential ordinands has shown a further fall to 14 in 24125, down from 20 in 23124). Fortunately non-residential recruitment has improved, with good numbers starting at both Cuddesdon and CGH. Overall the lower numbers training, whilst also experienced by other training institutions, is very worrying and will have an impact over the next vo to three financial years. The future financial viability of residential training remains uncertain. Changes to the mechanisms by which funding is passed to Theological Education Institutes have provided some short-to-medium term stability, but the picture beyond 2026 remains uncertain. The issue around possible changes to the framework for maintenance support to ordinands which may impact residential student recruitment is still unresolved. We remain committed to developing strategic relationships with key Di0￿SeS, to maximize our potential to recruit students. At the same time, we have responded creatively to prompts from the national Church (including the National Ministry Team) to develop new programmes for Children's, Youth and Families {CYF) work and the development of Incumbent ministry in relation to youth work. We expect to make a key appointment in this area early in 2025 and to be launching a pilot Incumbents, programme in January and a Ripon College Cuddesdon Governors, Annual Report Year Ended 31 July 2024 substantive trainee CYF pathway from September 2025. At the same time scrutiny remains tight on expenditure to assist in maintaining the financial viability of the college. Objectives for the year ahead Following the Periodic External review and with reference to its recommendations and other opportunities, the College's key objectives and priority actions for the 2024125 year are as follows 1. Make a successful appointment to launch a Children's, Youth and Families. Workers pathway from September 2025 (pilot programme at GloucesterlHereford centre from September 2024). 2. Develop an Incumbent Development Programme in conjunction with National Ministry Team colleagues (pilot launch in January 2025) 3. Develop the new OAM raining pathway with Oxford diocese on the basis of pilot from September 2024. 4. Continue to develop a new Business Plan, especially focusing on non-educational use of facilities in Cuddesdon for implementation from September 2025. structure, governance and management The management of the College is vested in a Board of Governors the composition of which is set out in the Royal Charter dated 11th December 2001 and the accompanying Bye Laws. The Royal Charter provides for the Board of Governors to be the governing and executive body of the College, exercising those powers as set out in the Charter and Bye Laws. The Governors are charged with appointing the College Principal who is responsible for the day-to-day leadership and management of the College. The Principal is assisted in this by senior staff members who meet regularly as the Senior Leadership Team. The College Govemors and advisors are set out on page 3. The Governors met four times during the year and received reports from the Principal and from staff and students and sub-committees on all aspects of the College's life and work. The Governors have reviewed the major risks which face the College and are satisfied that the necessary steps are being taken by the College to mitigate them. Responsibility for detailed financial scrutiny, including investment policy and the proposal of budgets and final accounts has been delegated by the Governors to the Finance Committee which comprises the Treasurer, at least Governing Body members, relevant staff members and up to three additional co- opted members. The Finance Committee meets at least four times a year and reports to each meeting of the Governing Body. The Finan￿ Committee undertakes an annual review of risks (financial, physical and reputstional) and monitors actions being taken to address any areas of concern. A further Governing Body sub-committee, Estates & Personnel, has delegated responsibility for oversight of eststes and personnel matters. The sub-committee is chaired by a Governor and reports regularly to meetings of the Board of Governors. In response to a recommendation from of the Periodic External Review, a new sub-committee was established in 2024, the Governance Committee. Chaired by a governor it is charged with responsibility to oversee recruitment of co-opted governors, giving particular attention to considerations of inclusion and diversity- A final Governing Body sub-committee. Education and Formation, has delegated responsibility for the strategic oversight of curriculum design and resourcing, including aspects of the ethos and identity of Cuddesdon as a place of scholarship and research. The sub-committee is chaired by a Governor and reports to meetings of the Board of Governors. Remuneration The Estates and Personnel Committee has responsibility for ensuring that we have appropriate remuneration procedures in place for all stsff, including those identified as Key Management Personnel. The remuneration of the Principal is determined in accordance with the Lichfield Scale recommended by the Finance Panel of the Ministry Division of the Archbishops, Council. Ripon College Cuddesdon Governors, Annual Report Year Ended 31 July 2024 Recruitment and induction of governors In accordance with the College's Bye-Laws, two Governors are nominated by the General Synod of the Church of England, two Governors are nominated by the Bishop of Oxford, and staff and students each elect two Governors. Up to ten further Governors may be cckopted by the Board of Governors. A Governors, induction pack has been prepared and is provided to all new Governors. Trustees, responsibilities The Governors are responsible for preparing the Governors, Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England & Wales requires the Governors 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 of the charity for that period. In preparing financial statements, the Governors are required to- select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP 2019 (FRS 102); make judgements and estimates that are reasonable and prudent., state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements-, prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and 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. On behalf of the Board of Governors Rt. Revd. Michael Ipgrave. Chair and Trustee Date: 18￿ May 2025 Ripon College Cuddesdon Independent Auditor's Report Year Ended 31 July 2024 Opinion We have audited the financial statements of Ripon College Cuddesdon (the 'charity') for the year ended 31. July 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement, 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: give a true and fair view of the state of the charity's affairs as at 31st July 2024, and of its incoming resources and application of resources, for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance with the requirements of the Charities Act 2011. 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 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 eviden￿ 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 ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report Other information The trustees are responsible for the other information. The other information comprises the information included in the trustees, annual report, other than the financial statements and our auditorfs report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent othetwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 10 Ripon College Cuddesdon Independent Auditor's Report Year Ended 31 July 2024 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: the information given in the financial statements is inconsistent in any material respect with the trustees, report., or sufficient accounting records have not been kept- or the financial statements are not in agreement with the accounting records., or we have not received all the information and explanations we require for our audit. Responsibllities of trustees As explained more fully in the trustees. responsibilities statement set out on page 10. 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. 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 regulations made under section 154 of that Act. Our objectives are to obtain reasonable assuran￿ about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-complian￿ with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below.. Enquiry of management, those charged with govemance and the entity's solicitors around actual and potential litigation and claims., Enquiry of entity staff in Accounting and HR functions to identify any instances of non