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2023-08-31-accounts

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Charity number 311445

Westcott House

Report and Financial Statements

31 August 2023

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Report and accounts Contents

Page
Reference and Adminstrative Details of the College, its Trustees and Advisors 1 - 2
Council Members' Report 3 - 8
Independent Auditors' Report 9 - 12
Statement of Financial Activities 13
Balance Sheet 14
Statement of Cash Flows 15
Notes to the Financial Statements 16 - 33

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Reference and Adminstrative Details of the College, its Trustees and Advisors for the year ended 31 August 2023

The Trustees of the Charity are the Council of the College, as detailed in the Charter.

Ex-officio Members

Chairman

The Rt Revd Paul Ferguson (appointed Member) (Nov 2018, appointed Chair July 2019)

The Principal of the College

The Revd Dr Helen Dawes (appointed November 2018 Trustee, appointed Principal October 2020)

The Vice Principal of the College

The Revd Chris Eyden (appointed November 2022, resigned July 2023)

The Honorary Treasurer

Revd Mark Bennet MA Mmath ACA (appointed Treasuer from October 2020 - July 2023, appointed Synod Rep November 2022)

Mr Adam Morrow (appointed Treasuer July 2023)

Academic Members (who shall hold office for five years)

Two members of the Divinity Faculty nominated by the Faculty

Professor Catherine Pickstock (appointed November 2013, reappointed February 2020, resigned November 2022)

Professor Nathan McDonald (appointed November 2014, reappointed February 2020)

The Very Revd Prof David Fergusson OBE, DD, FRSE, FBA (appointed January 2022)

Member of Academic Staff of a Federation Institution nominated by the Federation Council The Revd Dr Alexander Jensen (appointed July 2020)

Appointed Representative of the Instutution with Academic links with the College Dr Frances Clemson (appointed September 2020, resigned February 2023)

Staff Members (5 years) (up to two members of the Academic Staff)

Dr Julian Gotobed (appointed September 2021)

Dr Julia Snyder (appointed September 2021)

Appointed Members (5 years) (not more than seven members appointed by the Council)

The Rt Revd Paul Ferguson (appointed November 2018, appointed Chair July 2019)

The Revd Canon Thomas Woodhouse (appointed November 2018, resigned July 2023) Mr William Chapman CVO (appointed Observer March 2019, appointed Trustee October 2019)

The Revd Canon Professor James Walters (appointed March 2019 as a Gen.Synod Rep, in January 2022 became an Appointed Member)

The Revd Canon Flora Winfield (appointed July 2023 ) The Venerable Mark Steadman (appointed July 2023) The Venerable Alex Hughes (appointed July 2023)

Mr Jeffrey Brown (appointed August 2023)

Nominated Members (5 years) (Not more than two members of the Gen.Synod of the C of E nominated by Gen.Synod, appointed by Council)

Dr Helen King (appointed November 2022)

Revd Mark Bennet MA Mmath ACA (appointed Synod Rep from November 2022, formerly Hon Treasuer from October 2020 -July 2023)

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DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House

Reference and Adminstrative Details of the College, its Trustees and Advisors for the year ended 31 August 2023

Student Members (not more than two elected annually by the students)

Dr Hannah Swithinbank (elected December 2021, end of office December 2022) Mr Baxter McRolston (elected April 2021, end of office April 2023) Dr Robert Hawkins (elected April 2021, end of office April 2023) Ms Rachel Sheppard (elected December 2022) Ms Hannah Moore (elected April 2023) Mrs Natalie Davies (elected April 2023)

Observers

The Revd Simon Gatenby (since October 2004) Mr Michael Wolton-Carr (since February 2020)

Charity Registered number

311445

Principal office

Westcott House Jesus Lane Cambridge CB5 8BP

Visitor

The Archbishop of Canterbury

Independent Auditors

Peters Elworthy & Moore Chartered Accountants Salisbury House Station Road Cambridge CB1 2LA

Bankers

Barclays Bank plc P O Box 2 Cambridge CB2 8BP

Solicitors

Ashton KCJ Chequers House 77-81 Newmarket Road Cambridge CB5 8EU

Property Agents

Gerald Eve LLP 72 Welbeck Street London W1G 0AY

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DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Registered number: 311445 Council Members' Report for the year ended 31 August 2023

The Council Members present their annual report together with the audited financial statements of Westcott House (the College) for the year ended 31 August 2023. The Council Members confirm that the Annual Report and financial statements of the College comply with the current statutory requirements, the requirements of the College’s governing document and the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting Charities” applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 second edition - October 2019).

OBJECTIVES AND ACTIVITIES

Policies and objectives

The principal objective of the college is "to provide, carry on and maintain a College or Colleges for the preparation in accordance with the formularies of the Church of England of candidates for Holy Orders in the Church of England or in a Church in communion with the See of Canterbury."

Strategies for achieving objectives

To further these objectives the College provides students with opportunities to study the CertHE, DipHE, and BA (Hons) in Theology, Ministry and Mission (awards of the University of Durham) through the Cambridge Theological Federation along with a variety of academic courses leading to BTh, DTM, BA (Tripos), MPhil and PhD qualifications with the University of Cambridge.

The College is an officially recognised institution with links to the University of Cambridge, the University of Durham and Anglia Ruskin University. Teaching staff are affiliated to the Divinity Faculty of the University of Cambridge.

The College is a member of the Cambridge Theological Federation, comprising nine full and three associate member institutions providing preparation for ministry and theological research. Federation members share resources and teaching (courses, seminars and supervisions) is planned jointly. In 2014, the Cambridge Theological Federation entered into a validation agreement with the University of Durham and the Archbishops’ Council of the Church of England to deliver the Common Awards.

The College maintains a special link with the Manchester Diocese to place ordinands in Urban Priority Areas (UPA) parishes for teaching contextual theology as an integral component of their ministerial training. A parttime member of staff is based in Manchester. The College also maintains and develops links with Churches and training institutions overseas. Students have recently had the opportunity to participate on an exchange programme with Yale in the US and the Prediger Seminar in Wittenberg, Germany.

Activities for achieving objectives

Westcott House provides teaching staff and facilities, residential accommodation, a chapel, a continuously updated library, access to online resources, dining hall and other communal facilities. The teaching staff, augmented by local clergy both in Cambridge and in Manchester, provides tutorial and supervisory support for all students. A chaplain provides individual spiritual and pastoral support.

There is emphasis on spiritual and personal formation alongside academic learning, encouraging staff and students to grow in holiness, wisdom, compassion and openness.

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DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Registered number: 311445 Council Members' Report for the year ended 31 August 2023

In preparation for ministry in churches and the wider community, students in their first two years of training are attached to a local parish or university college chapel to gain liturgical and pastoral experience. During their training, which can last up to four years, all students complete an 8 to 10 week full time parish placement. For many of our students this takes place in Manchester where we maintain a house in partnership with the Diocese of Manchester. This partnership was established a generation ago. During the ordinands’ sustained period in a ministry context, students participate in a range of pastoral, social, liturgical and educational activities in local churches to enable them to develop their readiness to start in public ordained ministry. Westcott House pays attention both in the classroom and in practical placements to developing the awareness and skills to promote community cohesion including between people of different faiths.

Main activities undertaken to further the charity's purposes for the public benefit

In planning and in carrying out the college’s activities for the year, the Council has taken account of the published Guidance of the Charity Commission concerning Public Benefit (pursuant to section 4 of the Charities Act 2011).

Through the residential programmes, Westcott House prepares men and women to be effective in serving both congregations across the country, and the wider communities in which they are set. We place particular store in preparing ordinands to exercise their public, pastoral and spiritual responsibilities to the whole population.

As well as training those going to be public ministers, the teaching staff members themselves contribute to the wider church and community, through writing and research and assisting in local churches.

The Council has a policy of encouraging conference activity outside the teaching terms, to generate additional income and to defray some of the fixed costs of the enterprise. We hope that this can be recovered in time to pre-COVID levels. The conference activity is centred on religious and educational programmes, where organisational aims are consistent with the College's objectives. Accommodation is also provided for visitors to Cambridge.

ACHIEVEMENTS AND PERFORMANCE

Review of activities

The year covered by this report saw the second complete annual cycle in which the House was led by its Principal, the Revd Dr Helen Dawes.

In common with other educational institutions, Westcott House still had in its student cohort a number who had been directly affected by the COVID restrictions of 2020. Staff and students displayed resilience and we believe that we strove to make the students’ experience overall as full as possible.

The academic year saw continued implementation of the system of staff oversight and appraisal. Trustees had a programme of engaging with successive aspects of Charity Commission material on best practice, and reviewed the performance of the board in the light of it.

During the year 2022-23, there were 34 students preparing for public ministry in the Church of England ranging in age from early-twenties to mid-fifties. Students came in the main from England, with a small number from overseas. 24 students were studying for Durham University awards in Theology, Ministry and Mission and graduate and post-graduate diplomas; 10 were studying for BTh, BA (Tripos), MPhil and PhD qualifications

In addition, there were 11 independent students ranging in age from early-thirties to late sixties. All 11 independent students came from the UK and studied Durham University or Anglian Ruskin University awards.

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DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Registered number: 311445 Council Members' Report for the year ended 31 August 2023

FINANCIAL REVIEW

Financial results

During 2022-23 Westcott House incurred a deficit of £313,000 (2022: deficit of £282,000). Levels of income from charitable activities decreased to £765,000 (2022: £846,000). Expenditure on charitable activities decreased to £1,307,000 (2022: £1,382,000). Legacy income was £nil in the year (2022: £104,000).

Going concern

After reviewing budgets and cash flow forecasts to 31 August 2025, the Council members are satisfied that the College will have adequate resources to continue in operational existence for the immediate future. Cash resources are available, further funding is being explored and the College continues to maintain effective cashflow management. For this reason they continue to adopt the going concern basis in preparing the financial statements.

The long-term future of the College is less certain. The House has no permanent endowment and receives no core funding.

Due to the historic nature of most of its buildings, the College has an ongoing programme of maintenance alongside its day to day costs. Significant work is still needed, notwithstanding recent substantial refurbishments, to bring the whole site up to modern standards. The Trustees continue to be aware of the needs identified in the preceding year’s Condition Survey which indicates a minimum necessary spend of £0.75m plus VAT and fees over the immediately coming years.

Most funding for the House’s activities derives from grants for the tuition and maintenance of ordinands while in residence. The House currently receives no central funding from the Church and during the year received £9,423 tuition fees and £5,967 maintenance allowance per capita (based on full time single person equivalent) for each student, a level of funding that is less than general undergraduate tuition fee levels and significantly below postgraduate fee levels.

Funding previously paid through the Ministry Division of the Archbishops’ Council of the Church of England have for some years now been devolved to individual dioceses. Each diocese has its own requirements and many dioceses are choosing to fund part time training, allowing students to continue in part time work, rather than committing to a full-time residential training programme. This is further contributing to the unpredictability of year on year student numbers and it is our hope that an increase in the College’s range of training offers will have a positive effect over the mid to long term.

College income is driven predominantly from student numbers that vary each year. Student numbers choosing a full-time residential route to the ministry have dropped in 2022-23 primarily driven by the change in The Church of England’s discernment process, which we anticipate will prove to be in itself a one-off effect.

Further details regarding the adoption of the going concern basis can be found in the accounting policies.

Investment policy and performance

Westcott House did not hold any investments at the end of the year (2022: £nil)

Reserves policy

The College had total funds of £14,311,000 at 31 August 2023 (2022: £14,623,000). The free reserves position excluding fixed assets and associated borrowings and pension reserve stood at £521,000 at the year end. The finance committee have established a policy of maintaining reserves at a level of 6 months expenditure. This work is ongoing and necessitates the need to raise additional funds in the next 12 to 18 months.

The terms of the College’s restricted funds have been reviewed, and funds currently shown as permanent endowment are in line with the original donors’ wishes.

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DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Registered number: 311445 Council Members' Report for the year ended 31 August 2023

Risk management

The College contracts with Peninsula Business Services to advise on risk management and to conduct annual inspections as required. The Council has a policy of keeping the risk register under regular review. In September 2023 the College has also contracted with Shield Safety to implement a new food safety policy and provide wider health and safety advice.

The College continues to identify the following as key risks: Student numbers; loss of key academic staff; financial shortfalls; maintenance obligations of our historic buildings and reputational risk. Cyber security risk is continuously monitored.

The College is seeking to increase student numbers by ensuring that we continue to deliver training which fits the needs of a wider range of students than hitherto, while maintaining high educational standards. We continue to believe however in the importance of the House offering students the option of a residential programme of theological training and formation at the initial pre-ordination stage.

Plans to increase income include alumni fundraising and increasing student numbers. Income from casual lets and wider letting have contributed to increased commercial income as have the hosting of several events over the summer period. It is considered that maintaining this increased level of income is sustainable, subject to any risk from Covid-19, or similar, being effectively managed.

The College has, and continues to develop, robust policies and procedures in relation to the protection of vulnerable people.

PLANS FOR FUTURE PERIODS

Future developments

The Council continues to undertake a conservative view towards further intended projects which presented an unsupportable level of financial risk and for which capital sums are not realistically anticipated to be available.

Fundraising

For much of the previous years, systematic charitable fundraising was a largely unrealistic option for obvious reasons. With the pandemic of 2020 behind us, it has once again become possible, as is a concerted attempt to strengthen alumni relations. The new website includes a dedicated section for alumni and the Christmas newsletter invited contributions of news from alumni. Newsletters are sent termly to all key contacts, including alumni for whom we have contact details and permission. Establishing a foundation of regular givers both supports our work directly through increasing our regular income and also enables us to demonstrate the support for the work we do and for Westcott House as an institution in fundraising conversations with grantmaking trusts and philanthropists. With this in mind, the Principal has strengthened first-hand contact with Hong Kong, and a pattern of visits is starting to be established.

Key management and personnel remuneration

The key management personnel of the College are those in charge of directing and controlling the College and running and operating the College on a day to day basis. Key management personnel are considered to be the Council Members plus Director of Finance (observer). Four employees of the College are Council Members, as stipulated in the Royal Charter and Supplemental Charters: The Principal and Vice Principal of the College, (ex officio); and two members of the academic staff. These Council Members receive remuneration as employees, but do not receive any emolument in their capacity as Council Members.

All Council Members give of their time freely and no other members were remunerated in the period. Details of trustee expenses and related party transactions are disclosed in the notes to the accounts.

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

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DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Registered number: 311445 Council Members' Report for the year ended 31 August 2023

The pay of the key management personnel is reviewed annually and normally increased in accordance with average earnings. The remuneration is bench marked with charities of a similar size and activity (for the roles where the holder is required to be a priest, that includes the stipend and emoluments of clergy carrying a commensurate level of responsibility) to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

Westcott House is incorporated by Royal Charter of 29 November 1960 as amended by Supplemental Charters of 21 June 1979 and 20 April 1998.

The Charter provides that the income of the College shall be applied solely towards the objects of the College, one of which states "that for these purposes and objects generally to do all such acts and things as are or may be termed incidental or conducive to the attainment of any of the … purposes and objects of the college or the exercise of any of its powers."

The Council considers that whilst the core purposes expressed in the Royal Charter remain relevant, revision would be beneficial to the House. Revision would enable the House to offer within its charitable purposes a wider range of learning and formation, as well as in-service learning, in order better to serve the Church of England, the Anglican Communion and the public at large, in the future. It would also improve the separation of responsibilities and functions between staff, students (who are currently represented on the Council) and the independent Trustees. Template texts are being included in order to bring the Charter in line with the Charity Commission’s best recommended practice, and employed staff and student representatives will no longer be Trustees. A draft revision was in preparation during the time of this report and (now having received approval from the Council and the Visitor) will be taken through the necessary processes including the Privy Council as soon as possible.

Method of appointment or election of Council Members

The management of the College is the responsibility of the Council members who are elected and co-opted under the terms of the Royal Charter. New Appointed Members of the Council are recruited according to criteria agreed by Council.

A number of measures have been put in place to strengthen systems and practice of governance.

Organisational structure and decision making

The members of the Council have overall management control and oversight. The Finance Committee, which includes members with relevant professional expertise, has delegated responsibility for financial decisions, and reports to the Council each term.

The Principal is responsible for the academic and pastoral organisation, appointment of staff, and general wellbeing of the College.

Domestic and Catering facilities, together with Administration, are the responsibility of the Domestic Bursar. Financial management is the responsibility of the Director of Finance.

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DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Registered number: 311445 Council Members' Report for the year ended 31 August 2023

Council Members’ responsibilities statement

The Council Members are responsible for preparing the Council Members’ 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 Council Members to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the College and of the incoming resources and application of resources of the College for that period. In preparing these financial statements, the Council Members are required to:

The Council Members are responsible for keeping proper accounting records that are sufficient to show and explain the College’s transactions and disclose with reasonable accuracy at any time the financial position of the College 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 College and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report was approved by the Council Members, on 10 January 2024 and signed on their behalf by:

The Rt Revd Paul Ferguson Chair of the Council

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DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Independent auditors' report to the Council Members of Westcott House

Opinion

We have audited the financial statements of Westcott House (the 'charitable college') for the year ended 31 August 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been i hd

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

Basis of 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 charitable college in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Council Members 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 college'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 Council Members with respect to going concern are described in the relevant sections of this report.

Other information

The Council Members are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Independent auditors' report to the Council Members of Westcott House

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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of Council members

As explained more fully in the council members' responsibilities statement, the Council Members are responsible for the preparation of financial statements which give a true and fair view. and for such internal control as the Council Members 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 Council Members are responsible for assessing the charitable College'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 Council Members either intend to liquidate the charitable College's or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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-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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Independent auditors' report to the Council Members of Westcott House

we reviewed the minutes of Council Members’ meetings to identify and references to non-compliances with laws and regulations.

To address the risk of fraud through management bias and override of controls, we;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Council Members and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Auditors' Report.

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DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Independent auditors' report to the Council Members of Westcott House

Use of our Report

This report is made solely to the Council Members 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 Council Members 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 Council Members for our audit work, for this report, or for the opinions we have formed.

Peters Elworthy & Moore

Chartered Accountants Statutory Auditors

Salisbury House Station Road Cambridge CB1 2LA

Date: 10 January 2024

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DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Statement of Financial Activities for the year ended 31 August 2023

Endowment **Restricted ** Unrestricted Total Total
Funds Funds Funds Funds Funds
Notes 2023 2023 2023 2023 2022
£000 £000 £000 £000 £000
Income and endowments from:
Donations and legacies 2 - 12 28 40 122
Charitable activities 3 - 33 732 765 846
Other trading activities 4 - 4 233 237 164
Investments 5 - 1 15 16 -
Other income 6 - - 3 3 6
Total Income and endowments - 50 1,011 1,061 1,138
Expenditure on:
Raising Funds
Voluntary income 7 - - 22 22 8
Other trading activities 4 - - 45 45 30
Charitable activities 8 - 28 1,279 1,307 1,382
Total Expenditure - 28 1,346 1,374 1,420
Net Income / (expenditure) before - 22 (335) (313) (282)
Transfers
Transfers between funds 18 - (21) 21 - -
Net Income / (expenditure) before - 1 (314) (313) (282)
Other recognised gains / (losses)
Loss on disposal of fixed assets 13 - - (2) (2) (2)
Other gains 25 - - 3 3 (3)
Net Movement of funds - 1 (313) (312) (287)
Reconciliation of Funds
Total funds brought forward 285 186 14,152 14,623 14,910
Total funds carried forward 285 187 13,839 14,311 14,623

All activities relate to continuing activities.

The notes on pages 16 to 33 form part of these financial statements.

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DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Balance Sheet as at 31 August 2023

Notes
Fixed assets
Tangible assets
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due
within one year
16
Net current assets
Total assets less current
liabilities
Creditors: amounts falling due
after more than one year
17
Provisions for liabilities
Other provisions
25
Net assets
Charity Funds
Endowment Funds
18
Restricted Funds
18
Unrestricted Funds
18
Total funds		 2023
2022
£000
£000
14,014
14,324
2
1
64
44
1,000
1,022
1,066
1,067
(382)
(344)
684
723
14,698
15,047
(387)
(419)
-
(5)
14,311
14,623
285
285
187
186
13,839
14,152
14,311
14,623		 2023
2022
£000
£000
14,014
14,324
2
1
64
44
1,000
1,022
1,066
1,067
(382)
(344)
684
723
14,698
15,047
(387)
(419)
-
(5)
14,311
14,623
285
285
187
186
13,839
14,152
14,311
14,623
15,047
(419)
(5)
14,623
285
186
14,152
14,623

The Rt Revd Paul Ferguson

Chair of the Council

Approved by the board on 10 January 2024

The notes on pages 16 to 33 form part of these financial statements.

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DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Statement of Cash Flows for the year ended 31 August 2023

Notes
Cash flows from Operating activities
Net cash generated by operating activities
23
Cash flows from Investment activities:
Purchase of tangible fixed assets
Proceeds from sale of tangible fixed assets
Net cash used in Investment activities:
Cash flows from financing activities
Repayment of borrowings
Cash inflows from new borrowings
Net cash (Used in)/provided by financing activities
Change in cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward		 2023
£000
52
(42)
-
(42)
(32)
-
(32)
(22)
1,022
1,000		 2022
£000
78
(10)
1
(9)
(36)
-
(36)
33
989
1,022

The notes on pages 16 to 33 form part of these financial statements.

15

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

1 ACCOUNTING POLICIES

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Second edition October 2019 – effective 1 January 2019) and Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and Charities Act 2011.

Westcott House constitutes a public benefit entity as defined by FRS 102.

1.2 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Council Members in furtherance of the general objectives of the College and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Council Members for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the College for particular purposes. The costs of raising and administering such funds are charges against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

1.3 GOING CONCERN

The Charity incurred a deficit for the year of £313,000 before other gains and losses. Income from donations increased on last year (although regular giving declined), but legacy income was £nil (2022: £104,000). Income from trading activities increased significantly. The unrestricted deficit was £335,000 (2022: £304,000). However, there was an unrestricted surplus before depreciation and other recognised gains/losses of £15,000 (2022: £49,000).

The number of ordinands in training was down in the year due to changes in the Church's discernment process and consistent with the rest of the theological education sector. To mitigate the loss of tuition and maintenance income the Archbishops Council put in place funding support for 2022/23, this support was disbursed by Ministry Development Team. There was however a significant increase in the number of students pursuing independent study at Westcott House. The offer of degrees from Anglia Ruskin University has contributed to a modest increase in net income during 2022/23. this is expected to increase further in 2023/24 and beyond. Additional income streams are being explored by offering the opportunity for international students to study the Cambridge University DTM award. It is hoped this will be in place for 2024/25.

The funding received for training ordinands has changed for the financial year 2023/24. This is called Resourcing Ministerial Formation (RMF), has a new structure and basis for calculation, underpinned with a service level agreement and is received directly from the Archbishops Council via Ministry Development Team. (previously individual diocese were invoiced) The new arrangement is more predictable, easier to administer and has helped improve cashflow.

During the year a small amount of investment income was generated totaling £16,000 (2022: £nil)

16

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

1.3 GOING CONCERN (continued)

Income generated from trading activities has continued to grow. During the year the number number of postgraduate students from other Cambridge colleges renting a room at Westcott House increased; this was normally on a termly or academic year basis. The demand for casual letting remained strong and Westcott House hosted four conferences and events during the year.

The Charity continuously scrutinises its finances, regularly reviewing financial reports and cashflows. Each year budgets are set and approved by Council, thereafter periodic forecasts and projections are made and actual outturn constantly monitored throughout the year. Overseas fundraising has been identified as a priority with two overseas trips having taken place during 2023 and a fundraising committee being set up; subsequently some donation income has already been received.

The Council Members consider that there are no material uncertainties about the Charity’s ability to continue as a going concern.

1.4 INCOME

All income is recognised once the College has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the College is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the College has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the College, or the College is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

1.5 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation allocated on the portion of the asset’s use.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Governance costs are those incurred in connection with administration of the College and compliance with constitutional and statutory requirements.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

Charitable activities and Governance costs are costs incurred on the College’s educational operations, including support costs and costs relating to the governance of the College apportioned to charitable activities.

17

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

1.6 TANGIBLE FIXED ASSETS AND DEPRECIATION

Land and buildings, including fit out costs, forming the main site are valued on a fair value basis, with the value of operational land equating to market value on the assumption of a continuation of the existing use. The valuation is reported under the special assumptions to exclude any value of development opportunities for which planning permission would be required and has not been granted or where development has not yet commenced.

Tangible fixed assets are carried at valuation, net of depreciation and any provision for impairment. Depreciation is not charged on freehold land. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold land - not depreciated
Freehold building-main site - over 85-90 years straight line
Property fit out - over 10-30 years straight line
Furniture, fittings & equipment - 10%-33% straight line

A review for impairment of a fixed asset is carried out if events or changes in circumstance indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the statement of financial activities.

1.7 STOCKS

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

1.8 DEBTORS

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

1.9 CASH AT BANK AND IN HAND

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

1.10 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probably that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the College anticipates it will pay to settle the debt or the amount it has received as advanced payments for the good or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

18

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

1.11 FINANCIAL INSTRUMENTS

The College only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

1.12 PENSIONS

Church of England Funded Pension Scheme

The College participates in a defined benefit pension scheme. Contributions payable to this scheme are charged to the statement of financial activities so as to spread the cost of the pension over the employee’s expected working life. The pension charge is calculated on the basis of actuarial advice. The actuarial valuations are only prepared annually to 31 December and the College recognises its share based on the valuation following each financial year end as this is not considered to be materially different to a valuation as at 31 August. These contributions are invested separately from the College’s assets.

Church Workers Pension Scheme

The College also operates a defined contributions pension scheme. The pension charge represents the amounts payable by the College to the fund in respect of the year. These contributions were invested separately from the College’s assets.

1.13 JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Preparation of the financial statements requires management to make significant judgements and estimates. The key areas in the financial statements where these judgements and estimates have been made are as follows:

2 Income from donations and legacies

Donations
Legacies
Total 2022		 Endowment
Funds
Restricted Unrestricted
Funds
Funds
Total
Funds
Total
Funds
2023
2023
2023
2023
2022
£000
£000
£000
£000
£000
-
12
28
40
18
-
-
-
-
104		 Endowment
Funds
Restricted Unrestricted
Funds
Funds
Total
Funds
Total
Funds
2023
2023
2023
2023
2022
£000
£000
£000
£000
£000
-
12
28
40
18
-
-
-
-
104
12
28
40
122
-
8
114
122

3 Income from charitable activities

Teaching and training
Accommodation
Total 2022		 Endowment
Funds
Restricted Unrestricted
Funds
Funds
Total
Funds
Total
Funds
2023
2023
2023
2023
2022
£000
£000
£000
£000
£000
-
28
460
488
501
-
5
272
277
345		 Endowment
Funds
Restricted Unrestricted
Funds
Funds
Total
Funds
Total
Funds
2023
2023
2023
2023
2022
£000
£000
£000
£000
£000
-
28
460
488
501
-
5
272
277
345
-
33
732
765
846
-
49
797
846

19

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

4 Ancillary trading activities

Ancillary trading activities
Endowment Restricted Unrestricted Total Total
Funds Funds Funds Funds Funds
2023 2023 2023 2023 2022
£000 £000 £000 £000 £000
Events and other lettings - income - 4 233 237 164
- 4 233 237 164
Events and other lettings - expenses
Direct expenses - - 7 7 2
Other allocated expenses - - 3 3 3
Allocated Staff costs - - 35 35 25
- - 45 45 30
Net income from trading activities - 4 188 192 134

In 2022 £2k of income from events and other lettings was restricted. There were no restricted costs.

5 Investment income

Interest income
Total 2022		 Endowment
Restricted Unrestricted
Total
Total
Funds
Funds
Funds
Funds
Funds
2023
2023
2023
2023
2022
£000
£000
£000
£000
£000
-
1
15
16
-
-
1
15
16
-
-
-
-
-

6 Other income

Other incoming resources
Sundry income
Total 2022		 Unrestricted
Total
Total
Funds
Funds
Funds
2023
2023
2022
£000
£000
£000
-
-
5
3
3
1
3
3
6
6
6

20

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

7 Expenditure on Raising Voluntary Income

Unrestricted Total Total
Funds Funds Funds
2023 2023 2022
£000 £000 £000
Travel costs 5 5 -
Staff costs 17 17 8
22 22 8
Total 2022 8 8

8 Expenditure on Charitable Activities

Education
Welfare
Property
Total 2022
9
Direct Costs
Academic fees
Establishment costs
Other staff costs
Catering costs
Staff costs
Depreciation
Total 2022
10 Support and Governance Costs
Establishment costs
Auditor's remuneration
Staff costs
Total 2022		 Activities
Support &
Undertaken Governance
directly
Costs
(note 9)
(note 10)
Total
Total
2023
2023
2023
2022
£000
£000
£000
£000
448
153
601
672
108
14
122
121
528
56
584
589
1,084
223
1,307
1,382
1,143
239
1,382
Total
Total
Education
Welfare
Property
2023
2022
£000
£000
£000
£000
£000
101
-
-
101
133
16
4
134
154
146
20
-
-
20
46
-
31
-
31
30
311
73
44
428
435
-
-
350
350
353		 Activities
Support &
Undertaken Governance
directly
Costs
(note 9)
(note 10)
Total
Total
2023
2023
2023
2022
£000
£000
£000
£000
448
153
601
672
108
14
122
121
528
56
584
589
1,084
223
1,307
1,382
448
108
528
1,084
1,143
508
106
529
1,143
Total
Total
Education
Welfare
Property
2023
2022
£000
£000
£000
£000
£000
69
6
25
100
92
10
1
4
15
12
74
7
27
108
135
153
14
56
223
239
164
15
60
239

21

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

11 Net Income/expenditure
This is stated after charging:
Depreciation of owned fixed assets owned by the Charity
Auditors' remuneration for audit services
12 Staff costs
Wages and salaries
Social security costs
Other pension costs
Average number of employees during the year
Teaching
Fundraising
Other		 2023
£000
350
15
2023
£000
491
39
58
588
Number
5
1
9
15		 2022
£000
353
12
2022
£000
501
38
64
603
Number
6
1
10
17

No employees were paid in excess of £60,000 (2022: none).

Five employees of the charity are council members, as stipulated in the Royal Charter and Supplemental Charters: The Principal and Vice Principal of the College, (ex officio); two (two in 2022) members of the academic staff; the Bursar (appointed). These council Members receive remuneration as employees, but do not receive any emolument in their capacity as council members. During the year the remuneration for these members totaled £99,000 (2022 : £107,000) and employer's pension contributions totaled £17,000 (2022 : £23,000). During the year the Vice Principal was seconded from The Diocese of St Edmundsbury & Ipswich as an interim appointment.

Key management personnel are considered to be the council members, as above, plus the Director of Finance (observer). During the year the remuneration for these personnel, including pension contributions, totalled £193,000 (2022 : £205,000).

During the year, three (2022 : two) Council Members were reimbursed for travel expenses totaling £246 (2022: £135).

22

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

13 Tangible fixed assets

Tangible fixed assets
Cost or valuation
At 1 September 2022
Additions
Asset component reclassification
Disposals
At 31 August 2023
Depreciation
At 1 September 2022
Charge for the year
On disposals
At 31 August 2023
Carrying amount
At 31 August 2023
At 31 August 2022		 Freehold
property
Fixtures,
fittings and
equipment
Total
£000
£000
£000
13,488
3,016
16,504
-
42
42
-
-
-
-
(89)
(89)
13,488
2,969
16,457
903
1,277
2,180
163
187
350
-
(87)
(87)
1,066
1,377
2,443
12,422
1,592
14,014
12,585
1,739
14,324

Included in land and buildings is freehold land at a cost/valuation of £6,339,000 (2021: £6,339,000) which is not depreciated.

The main site properties, including land, were valued at 31 August 2014 by Gerald Eve LLP, a registered firm of Chartered Surveyors. The valuation was prepared in accordance with the requirements of RICS Valuation - Professional Standards, January 2014 amended and Financial Reporting Standard 102 and the 2014 Statement of Recommended Practice 'Accounting for Further and Higher Education'.

Disposal of fixtures and fittings during the year resulted in a loss of £2,000.

14 Stocks
Kitchen and housekeeping stock
15 Debtors
Trade debtors
Other debtors
Prepayments and accrued income		 2023
£000
2
2023
£000
19
1
44
64		 2022
£000
1
2022
£000
13
1
30
44

23

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

16 Creditors: amounts falling due within one year
Bank loans
Other loan
Trade creditors
Other taxes and social security costs
Other creditors
Accruals and deferred income		 2023
2022
£000
£000
51
51
200
200
36
28
17
22
7
6
71
37
382
344

Bank mortgage loan disclosed under creditors falling due within 1 year is secured by the charity on certain of its freehold properties. It comprises a 20-year loan drawn in 2016 which has a 5 year fixed rate of 3.71% per annuum, fixed in January 2022 for 5 years, and is repayable by instalments.

Bank loans includes a Government backed 'bounce back' loan, which was drawn down in July 2020. This loan is 100% guaranteed by the Government, repayable in monthly installments up to the repayment date of June 2026. Interest is charged at 2.5% per annum.

Other loan is an unsecured loan of £200,000 received from Church Body of the Hong Kong Sheng Kung Hui. The loan has a repayment date of February 2025 but repayable on demand, with interest charged at a rate of 0% and is not payable by instalments

Deferred income
Brought forward
Income released in the year
Income deferred in the year
Carried forward		 2023
2022
£000
£000
1
6
(1)
(6)
15
1
15
1

Deferred income relates to student vacation charges, student flat rentals and external let rentals for September 2023 and a deposit for a conference taking place post year end.

17 Creditors: amounts falling due after one year
2023
£000
Bank loans
387
Creditors include amounts not wholly repayable within 5 years as follows:
2023
£000
Repayable by instalments
205		 2022
£000
419
2022
£000
228

Bank mortgage loan disclosed under creditors falling due within 1 year is secured by the charity on certain of its freehold properties. It comprises a 20-year loan drawn in 2016 which has a 5 year fixed rate of 3.71% per annuum, fixed in January 2022 for 5 years, and is repayable by instalments.

Bank loans includes a Government backed 'bounce back' loan, which was drawn down in July 2020. This loan is 100% guaranteed by the Government, repayable in monthly installments up to the repayment date of June 2026. Interest is charged at 2.5% per annum.

24

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

18 Statement of Funds

Current Year
Designated Funds
Fixed asset fund
General Funds
General Fund
Endowment Funds
Restricted funds
Total of Funds
Prior Year
Designated Funds
Fixed asset fund
General Funds
General Fund
Endowment Funds
Restricted funds
Total of Funds
Total Unrestricted
funds
Endowment Fund
(note 21)
Restricted funds
(note 22)
Total Unrestricted
funds
Endowment Fund
(note 21)
Restricted funds
(note 22)		 Brought
Resources
Transfers
Gains/
Balance
Forward
Income
expended
In/out
(losses)
2023
£000
£000
£000
£000
£000
£000
13,605
-
-
(287)
-
13,318
547
1,011
(1,346)
308
1
521
14,152
1,011
(1,346)
21
1
13,839
285
-
-
-
-
285
186
50
(28)
(21)
-
187
14,623
1,061
(1,374)
-
1
14,311
Brought
Resources
Transfers
Gains/
Balance
Forward
Income
expended
In/out
(losses)
2022
£000
£000
£000
£000
£000
£000
13,926
-
-
(321)
-
13,605
488
1,079
(1,378)
363
(5)
547
14,414
1,079
(1,378)
42
(5)
14,152
285
-
-
-
-
285
211
59
(42)
(42)
-
186
14,910
1,138
(1,420)
-
(5)
14,623

19 FUNDS

ENDOWMENT FUNDS

The endowment funds were set up from monies gifted to the Charity. The Funds have been invested in order to generate income in the form of dividends and interest to be used for the purposes detailed below. The capital element of the funds cannot be expended

Inge Bequest Fund

The income generated is included in the General Fund. The Fund was set up to provide bursaries for training for Orders in the Church of England, provided the student is not tied to any diocese

25

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

19 FUNDS (continued)

Purvis Bequest Fund

The income generated is included in the General Fund. The income is available to help towards the Principal's stipend

Specific Funds

Endowment Funds where the income generated is specific are included below

Endowment Fund

The Endowment Fund was set up with the intention that the capital element should be preserved. The income generated is split between the specific restricted funds and unrestricted funds

RESTRICTED FUNDS

Ministry Division Academic Fees

The fund represents monies received from the Ministry Division to contribute to academic tuition fees for students studying at Westcott House

Cunningham Bequest

The fund is used to provide bursaries for Old Marlburian and Wykehamist students training for ministry or other student in training for ministry

Cunningham Memorial Fund

The fund was set up to provide monies for refresher courses

Arthur Swingler Fund

The income is used to provide bursaries of grants to students particularly in the case of illness

Montefiore Prize Fund

The fund was set up to provide prizes, awarded at the discretion of the Principal and Council

Bushby Memorial Fund

The purpose of this fund is to assist students in Greek testament studies

Haworth Prize Fund

The Fund was established to provide prizes awarded at the discretion of the Principal and the Council awarded in books for the best performance in Federation Exams

Jennings Fund

The purpose of the Fund is to assist students to take a course of studies at Westcott House

Principal's Discretionary Fund

The Fund was set up with the intention that the capital element should be preserved. The income generated is used at the Principal's discretion in furtherance of the charity's objectives

Southern African Bursary Fund

The Fund was set up in 1997 from a donation of £25,000. The income generated is used to provide bursaries towards maintenance and tuition costs for one term's study at Westcott House for clergy from the Anglican Church of the Province of Southern Africa

The Peter Walker China Bursary

This was set up from a donation received in 2004 to provide living expenses and tuition fees for candidates from Hong Kong and China

Bursary Fund

Set up in 2011 the fund contributes towards the academic fees for those in training for Ministry

Building Development Fund

The Fund was set up in 2015 for the new planned development

G&H Development Fund

The Fund was set up from a donation in 2018 to contribute to the refurbishment and transformation of Blocks G&H to improve the living conditions of students at Westcott House

26

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

20 Analysis of Net Assets between funds

Current Year
Tangible fixed assets
Current Assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges
Prior Year
Tangible fixed assets
Current Assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges		 Endowment
Restricted Unrestricted
Total
Funds
Funds
Funds
Funds
2023
2023
2023
2023
£000
£000
£000
£000
285
-
13,729
14,014
-
187
879
1,066
-
-
(382)
(382)
-
-
(387)
(387)
-
-
-
-
285
187
13,839
14,311
Endowment
Restricted Unrestricted
Total
Funds
Funds
Funds
Funds
2022
2022
2022
2022
£000
£000
£000
£000
285
-
14,039
14,324
-
186
881
1,067
-
-
(344)
(344)
-
-
(419)
(419)
-
-
(5)
(5)
285
186
14,152
14,623
21 Endowment Funds
Current Year
GENERAL FUNDS
Inge Bequest
Purvis Bequest
Unrestricted units
SPECIFIC FUNDS
Cunningham Bequest
Cunningham Memorial
Arthur Swingler Fund
Montefiore Prize
Bushby Memorial
Haworth Prize
Jennings Fund
Principal's Discretionary Fund
UNINVESTED FUNDS
Unrestricted		 Balance at
Income
Transfers
Revaluation
Balance at
1 September
of
31 August
2022
Investments
2023
£000
£000
£000
£000
£000
30
-
-
-
30
71
-
-
-
71
3
-
-
-
3
104
-
-
-
104
10
-
-
-
10
7
-
-
-
7
20
-
-
-
20
4
-
-
-
4
3
-
-
-
3
1
-
-
-
1
12
-
-
-
12
48
-
-
-
48
105
-
-
-
105
76
-
-
-
76
285
-
-
-
285

27

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

21 Endowment Funds (continued)

Prior Year Balance at Income Transfers Revaluation Balance at
1 September of 31 August
2021 Investments 2022
£000 £000 £000 £000 £000
GENERAL FUNDS
Inge Bequest 30 - - - 30
Purvis Bequest 71 - - - 71
Unrestricted units 3 - - - 3
104 - - - 104
SPECIFIC FUNDS
Cunningham Bequest 10 - - - 10
Cunningham Memorial 7 - - - 7
Arthur Swingler Fund 20 - - - 20
Montefiore Prize 4 - - - 4
Bushby Memorial 3 - - - 3
Haworth Prize 1 - - - 1
Jennings Fund 12 - - - 12
Principal's Discretionary Fund 48 - - - 48
105 - - - 105
UNINVESTED FUNDS
Unrestricted 76 - - - 76
285 - - - 285
**22 ** Restricted Funds
Current Year Balance at Income Resources Transfers Revaluation Balance at
1 September expended of 31 August
2022 Investments 2023
£000 £000 £000 £000 £000 £000
MINISTRY DIVISION FUNDS
Ministry Division
academic fee - 28 (28) - - -
SPECIFIC FUNDS
Cunningham Bequest 12 1 - - - 13
Cunningham Memorial 9 1 - - - 10
Arthur Swingler Fund 18 2 - - - 20
Montefiore Prize 5 - - - - 5
Bushby Memorial 3 - - - - 3
Haworth Prize 1 - - - - 1
Jennings Fund 7 1 - - - 8
Southern African
Bursary Fund 88 1 - - - 89
Peter Walker China
Bursary 18 - - - - 18
Bursary Fund - 12 (12) - -
Principal's
Discretionary Fund 16 4 - - - 20
G&H Development
Fund 9 - - (9) - -
Total Restricted 186 50 (28) (21) - 187

28

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

22 Restricted Funds (continued)

Prior Year Balance at Income Resources Transfers Revaluation Balance at
1 September expended of 31 August
2021 Investments 2022
£000 £000 £000 £000 £000 £000
MINISTRY DIVISION FUNDS
Ministry Division
academic fee - 42 (42) - - -
SPECIFIC FUNDS
Cunningham Bequest 11 1 - - - 12
Cunningham Memorial 8 1 - - - 9
Arthur Swingler Fund 16 2 - - - 18
Montefiore Prize 5 - - - - 5
Bushby Memorial 3 - - - - 3
Haworth Prize 1 - - - - 1
Jennings Fund 6 1 - - - 7
Southern African
Bursary Fund 88 - - - - 88
Peter Walker China
Bursary 18 - - - - 18
Bursary Fund - 8 (8) - -
Principal's
Discretionary Fund 12 4 - - - 16
G&H Development
Fund 43 - - (34) - 9
Total Restricted 211 59 (42) (42) - 186

At the year end the charity reviewed its expenditure during the year and where possible allocated costs to certain restricted funds. Where specific costs were not easily identifiable these have been shown as transfers to unrestricted funds.

The transfer from the Bursary Fund represents a contribution to the shortfall in funding for ordinands studying BTh and other Cambridge awards.

29

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

23 Reconciliation of Net Movement in Funds to Net Cash Flow from Operating Activities

2023 2022
£000 £000
Net income for the year (as per Statement of financial (312) (287)
activities)
Adjustment for:
Depreciation charges 350 353
Loss on disposal of Fixed assets 2 2
Dividends, interest and rents from investments - -
(Increase)/decrease in stocks (1) 2
Decrease/(increase) in debtors (20) 54
Increase/(decrease) in creditors 38 (42)
Increase/(decrease) in provisions (5) (4)
Net cash generated by operating activities 52 78
**24 ** Analysis of Net Debt
Current Year Balance at Balance at
1 September Cash 31 August
2022 Flows 2023
£000 £000 £000
Cash in hand 1,022 (22) 1,000
Creditors: Amounts falling due within one year
Bank loans (51) - (51)
Other loan (200) - (200)
Creditors: Amounts falling after more than one year
Bank loans (419) 32 (387)
Total 352 10 362
Prior Year Balance at Balance at
1 September Cash 31 August
2021 Flows 2022
£000 £000 £000
Cash in hand 989 33 1,022
Creditors: Amounts falling due within one year
Bank loans (47) (4) (51)
Other loan (200) - (200)
Creditors: Amounts falling after more than one year
Bank loans (459) 40 (419)
Total 283 69 352

30

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

25 Pension Commitments

Church of England Funded Pension Scheme (CEFPS)

Westcott House Cambridge participates in the Church of England Funded Pensions Scheme for stipendiary clergy, a defined benefit pension scheme. This scheme is administered by the Church of England Pensions Board, which holds the assets of the scheme separately from those of the Responsible Bodies.

Each participating Responsible Body in the Church of England Funded Pensions Scheme pays contributions at a common contribution rate applied to pensionable stipends.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. It is not possible to attribute the Scheme’s assets and liabilities to each specific Responsible Body, and this means contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year (2023: £16,929, 2022: £32,482), plus the figures in relation to the Scheme's deficit highlighted in the table below as being recognised in the SoFA, giving a total charge of £13,929 for 2023 (2022: £35,482).

A valuation of the Scheme is carried out once every three years. The most recent Scheme valuation completed was carried out at as 31 December 2021. The 2021 valuation revealed a surplus of £560m, based on assets of £2,720m and a funding target of £2,160m, assessed using the following assumptions:

Following the 31 December 2018 valuation, a deficit recovery plan was put in place until 31 December 2022 and the deficit recovery contributions (as a percentage of pensionable stipends) were as set out in the table below. An interim reduction to deficit contributions to 3.2% of pensionable stipends was made with effect from 1 April 2022. Following finalisation of the 31 December 2021 valuation, deficit contributions ceased with effect from 1 January 2023, since the Scheme was in surplus.

As at 31 December 2020 and 31 December 2021 the deficit recovery contributions under the recovery plan in force were as set out in the table below. For senior office holders, pensionable stipends are adjusted in the calculations by a multiple, as set out in the Scheme’s rules.

% of pensionable stipends January 2018 to
December 2020		 January 2021 to
December 2022
Deficit repair contributions 11.9% 7.1%

31

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

25 Pension Commitments (continued)

Section 28.11A of FRS 102 requires agreed deficit recovery payments to be recognised as a liability. However, as there are no agreed deficit recovery payments from 1 January 2023 onwards, the balance sheet liability as at 31 December 2022 is nil. The movement in the balance sheet liability over 2021 and over 2022 is set out in the table below.

over 2022 is set out in the table below.
2022 2021
Balance sheet liability at 1 January 5,000 9,000
Deficit contribution paid (2,000) (7,000)
Interest cost (recognised in SoFA)
Remaining change to the balance sheet liability* (3,000) 3,000
(recognised in SoFA)
Balance sheet liability at 31 December 0 5,000

This liability represents the present value of the deficit contributions agreed as at the accounting date and has been valued using the following assumptions. No assumptions are needed for December 2022 as there are no agreed deficit recovery payments going forward. No price inflation assumption was needed for December 2021 since pensionable stipends for the remainder of the recovery plan were already known.

December 2022 December 2021 December 2020
Discount rate n/a 0.0% pa 0.2% pa
Price inflation n/a n/a 3.1% pa
Increase to total pensionable
payroll n/a -1.5% pa 1.6% pa

The legal structure of the scheme is such that if another Responsible Body fails, Westcott House Cambridge could become responsible for paying a share of that Responsible Body’s pension liabilities.

Church workers Pension Fund (CWPF)

Westcott House participates in the Pension Builder Scheme section of CWPF for lay staff. CWPF is administered by the Church of England Pensions Board, which holds the CWPF assets separately from those of the Employer and other participating employers.

CWPF has two sections:1. the Defined Benefits Scheme

  1. the Pension Builder Scheme, which has two subsections; a.a deferred annuity section known as Pension Builder Classic, and, b.a cash balance section known as Pension Builder 2014.

Pension Builder Scheme

Both sections of the Pension Builder Scheme are classed as defined benefit schemes.

32

DocuSign Envelope ID: D298C3CC-7364-4D58-A5A9-FDFD5EAD7592

Westcott House Notes to the Accounts for the year ended 31 August 2023

25 Pension Commitments (continued)

Pension Builder Classic provides a pension, accumulated from contributions paid and converted into a deferred annuity during employment based on terms set and reviewed by the Church of England Pensions Board from time to time. Discretionary increases may also be added, depending on investment returns and other factors.

Pension Builder 2014 is a cash balance scheme that provides a lump sum which members use to provide benefits at retirement. Pension contributions are recorded in an account for each member. Discretionary bonuses may be added before retirement, depending on investment returns and other factors. The account, plus any bonuses declared is payable, unreduced, from age 65.

There is no sub-division of assets between employers in each section of the Pension Builder Scheme.

The scheme is considered to be a multi-employer scheme as described in Section 28 of FRS 102. This is because it is not possible to attribute the Pension Builder Scheme’s assets and liabilities to specific employers and means that contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are the contributions payable (2023: £35,846, 2022: £35,710).

A valuation of the Pension Builder Scheme is carried out once every three years. The most recent valuation was carried out as at 31 December 2019. The next valuation is due as at 31 December 2022.

For the Pension Builder Classic section, the valuation revealed a deficit of £4.8m on the ongoing assumptions used. At the most recent annual review, the Board chose to grant a discretionary bonus of 10.1% following improvements in the funding position over 2022. There is no requirement for deficit payments at the current time.

For the Pension Builder 2014 section, the valuation revealed a surplus of £5.5m on the ongoing assumptions used. There is no requirement for deficit payments at the current time.

The legal structure of the scheme is such that if another employer fails, Westcott House could become responsible for paying a share of the failed employer’s pension liabilities.

26 Operating Lease Commitments

At 31 August 2023 the total of the charity's future minimum lease payments under non-cancellable operating leases was:

Amounts payable:
within one year
within two to five years		 Other
Other
2023
2022
£000
£000
2
3
2
5
4
8

27 Related Party Transactions

During the year 3 trustees made donations to the charity totalling £572 (2022: 2 trustees - £155). No benefits were received as a result of these donations. There were no other related parry transactions in the current or prior year.

33