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2023-06-30-accounts

NAZARENE THEOLOGICAL COLLEGE

Financial Statements and Governors’ Report for the year ended 30[th] June 2023

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

The Board of Governors presents its report and audited financial statements from 1[st] July 2022 to 30[th] June 2023.

Reference and Administrative Details

Names of the charity trustees who manage the charity and were in place in 2022-2023.

Name Position on
Governors		 Voting
member
y/n		 Term Body of Appointment
Mr. Ian
Burleigh		 Chair
Member at
**large **		 Yes Jan 26th
2019-Jan 2022
Jan 22-Mar 2025		 National Board Appointee:
section 3
Mr. Philip
Howard		 Vice Chair
Member at
large		 Yes Nov 21-Nov 2024 National Board Appointee:
Section 3
Mr Steven
Leach		 Secretary
Member at
**large **		 Yes Jan 26th
2019- Jan 2022
Jan 22-Mar 2025		 National Board Appointee:
Section 3
Rev. Carl
McCann		 Executive
member
Ex officio		 Yes April 17th2021
4 year term		 British Isles South District
Rev. Ruth
Turner		 Executive
member
Ex officio		 Yes May 15th
2021
2year term		 British Isles North District
Mr. Finlay
MacKinnon		 District lay
representative		 Yes Mar 14th 2022-
Mar 2025		 British Isles North District
Mr. Iain
McGookin		 District lay
representative		 Yes April 17th
2021-Mar 2024		 British Isles North District
Rev.
Lorraine
Bell		 District elder
representative		 Yes April 17th
2021-Mar 2024		 British Isles North District
Rev.
Osahon
Jeremie
Ogbeiwi		 District elder
representative		 Yes April 17th
2021-2024		 British Isles South District
Mrs Katy
Dawson		 District lay
representative		 Yes Appointed October 4th
2021-Mar 2023		 British Isles South District
Mrs Helen
Roberts		 District lay
representative		 Yes Appointed 10 March
2023 – March 2027		 British Isles South District
Rev. Arthur
Snijders		 Member at
large		 Yes Appointed Jan 21-Jan
24		 National Board Appointee:
Section 3

Yellow ex Officio Peach British Isles South District Mauve British Isles North District Co-opted National Board Appointee: Section 3 Co-opted Member at Large: Section 5

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

Names of the Board of Governors co-opted as advisors for expertise, representation and the development of the Charity who were in place in 2022-2023. All non-voting participants in meetings of the Board.

Mr. Gareth Lawson Board co-option No April 17th
2021-Nov
2024		 Board of Governors
Section 5
Mrs. Rosemary
Arnold Knights		 Board co-option No Nov 28th
2020-May
2023
Second
term May
2023-
Nov 202
6		 Board of Governors
Section 5
Mrs. Shirley Berry Board co-option No Jan 2023-
Jan 2026		 Board of Governors
Section 5
Rev. Stéphane Tibi Regional
Education
Coordinator		 No
Resigne
d 2023		 Ex officio Eurasia Region
Rev. Dr. Klaus Arnold
 Commissioner
International
Board of
Education		 No 2020- General Church
Rev. Jim Ritchie Eurasia Regional
Director		 No 2020- Eurasia Region
Rev. Dr. Deirdre
Brower Latz		 Principal No 2012- Board of Governors
Ms Esther Newton Student Body
President		 No May 22 Student Body: Section 4

Names of the charity trustees who completed their term of office in 2022-2023.

Mr. Joel Banks served until May 1st 2023. Mr Stéphane Tibi served until November 30th 2022. Mrs. Laura Nike served until August 25th 2022.

Charity name

Nazarene Theological College

Charity Registration Number

526675

Principal Office

Dene Road Didsbury Manchester M20 2GU

Board of Governors

The Chairman and Vice Chairman are elected by the Governors.

The following trustees are designated to hold title to land and buildings belonging to the charity and are designated to be signatories to mortgages held on behalf of the charity:

Mr. Ian Burleigh (Vice Chair May 2017-2020, Chair 2020-present) Mr. Steve Leach (Secretary appointed May 2017-present)

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

Rev. Ruth Turner (Ex Officio and member of the executive, 2020-present) Rev. Carl McCann (Ex Officio and member of the executive, 2019-present)

The College does not have any funds held as custodian trustees on behalf of others.

Principal staff

Principal Revd Dr Deirdre Brower Latz Vice Principal & Academic Dean Dr Peter Rae (from July 1[st] 2019) Associate Dean and Research Chair Rev. Dr. Jacob Lett (from July 2022) Director of Research Dr. Geordan Hammond (from July 1[st] 2022) Director of Operations Ms. Pauline McKendrick (from September 2018) People Advisor Mrs Debi Green (from February 2023) Finance Manager Mrs. Simona Stanfield Finance Consultant Mr. Andrew Hollingworth (August 2021-present)

Registered Office

Nazarene Theological College Dene Road Didsbury Manchester M20 2GU

Website : www.nazarene.ac.uk

Auditors

Slade & Cooper Ltd ( appointed April 2023) Beehive Mill Jersey St Ancoats Manchester M4 6JG

Bankers

Barclays Bank PLC 1st Floor 3 Hardman Street Spinningfield Manchester M3 3HF Reliance Bank Limited Faith House 23-24 Lovat Lane London EC3R 8EB

Solicitors

Anthony Collins Solicitors 134 Edmund St, Birmingham B3 2ES

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

Our Objectives and Activities

Purposes and aims

Our charity’s purposes are set out in the objects of the charity which are to foster, promote and maintain theological higher education in harmony with the Manual of the Church of the Nazarene, as interpreted by the General Assembly of the Church of the Nazarene in session from time to time.

The aims of our charity will include, but not be limited to,

Activities

The Officers of the College work on the annual monitoring and evaluation of the current strategy. Full reports are given to the Governors on the progress being made towards the fulfilment of the agreed vision and direction of the institution.

The activities of the College continued within the vision, strategy and direction reflecting the context of the UK in relation to the on-going societal changes experienced because of Covid, inflation and interest rate changes in the Bank of England. The wider economic context impacts the College in a variety of ways, from student recruitment to managing costs.

In this year:

The Governors of the College consider that the College’s aims, objectives and activities as described herein demonstrate proof of public benefit in the advancement of religion and in the advancement of education. Within its core operations the College offers a non-discriminatory policy assuring the mission, vision, values and ethos of the College are upheld. The Governors spent time considering the Vision, Ethos and culture that undergirds all strategy.

In addition, through the work of the ancillary services additional public benefit is served. These include, but are not limited to,

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

Achievements and performance: The focus of our work

The key areas of focus of the College personnel and Governors continue to include the following, which reflects past, present and future actions:

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

Academic Achievements and Performance

The College is a partner college of the University of Manchester and its awards, from the Diploma to the PhD, are validated through The University of Manchester. The validation of NTC through the University of Manchester continues as a positive relationship of mutual respect and is valued and nurtured by the College and esteemed highly by its students. The relationship gives strength to the ongoing strategic goal of the College to offer academic excellence across its programmes.

The College’s Degree in Youth Work and Community is validated by the National Youth Agency as meeting the Joint Negotiating Committee professional standards for youth workers. Following significant review and approaching the time for revalidation the College agreed to revise the programme significantly and the revised programme (from 2022 September entry) will no longer carry NYA validation, but only University of Manchester validation. The new Undergraduate pathway in Biblical Studies, and a new Postgraduate pathway in Community Development had their first cohort and both were evaluated and demonstrably effective.

The College runs taught academic programmes at both undergraduate and postgraduate levels; it also supervises Research Degree programmes. Courses commence with a flexible one-year certificate course and continue through to the PhD programme. The range of courses now offered is as follows:

Undergraduate

Certificate, Diploma, Bachelor of Arts Degree and Honours Bachelor of Arts Degree in Theology. Certificate, Diploma, Bachelor of Arts Degree and Honours Bachelor of Arts Degree in Theology, Youth Work and Ministry.

Bachelor of Arts Degree in Theology, Youth Work and Community.

Certificate, Diploma, Bachelor of Arts Degree and Honours of Arts Bachelor Degree in Practical Theology.

Certificate, Diploma, Bachelor of Arts Degree and Honours Bachelor of Arts Degree in Theology (Biblical Studies)

Note: the course specifications for the Certificate, Diploma, Bachelor of Arts Degree and Honours Bachelor of Arts Degree in Theology, Youth Work and Ministry/Theology, Youth Work and Community were rewritten and approved.

Postgraduate

Post Graduate Certificate, Diploma and Master of Arts Degree in Theology: Post Graduate Certificate, Diploma and Master of Arts degree in Theology with streams in a range of areas all approved by the University.

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

Research degrees at both MPhil and the PhD level (including the Practice-based PhD) are individually pursued by students and supervised by the College, the current level of students on research programmes is 37, with several students satisfactorily completing their degrees in the past year.

The College subscribes to the Quality Assurance Agency (QAA), the OfS designated body for quality, to provide assurance that the College is meeting UK expectations for the academic standards of awards offered, and the quality, information and enhancement of learning opportunities provided.

The College has an Access and Participation Plan approved by the Office for Students which is regulated in relation to student admissions, progression and attainment. There are still underlying challenges relating to the deficit background for students from non-traditional backgrounds.

We work within the Home Office Prevent Duty framework to recognise and reduce risks of radicalisation.

International Activity

A number of our faculty continued to be speakers and engaged in professional conferences throughout this year. The cohorts for international students were services through online engagement and the development of a pre-degree programme to ensure early support for student success. Partnerships with Asbury Seminary continued and were maintained for engagement in teaching and learning opportunities. The College hosted several key partner groups over the summer of 2022 and in the early summer of 2023.

Non-Academic/Student Support Achievements and Performance

The College offered online Mental Health First Aid courses, and these were very positive. Investment in key bursaries to support developments, hardship and enable students to access learning continued. We have also continued to work towards training and development in antiracist practice.

The roof of the College continued to undergo repair with the completion of this project (weather dependent) in 2023.

The delayed project of the walkway began and was completed in July 2023 enabling one-level access to the Caƒe area of the College.

We undertook a disability audit and are working on a strategic plan to continue to develop our accessibility.

The College successfully completed a number of data capture pieces of work, including: Office for Students (OfS), Higher education in Alternative Providers Early Statistic Survey (HEAPES), Destination of Leavers from Higher Education (DLHE), National Student Survey, PREVENT, UK Border agency sponsorship regulation, and the USA Veterans Affairs audit. The College has continued to manage its regulatory framework well.

As a result of the increasing regulation and compliance we established a Compliance committee, and the second year of its operation has been successfully completed. Matters emerging from it are considered by the relevant areas of the College, thus centralising our approach, and ensuring internal audits of our policies, procedures and actions are undertaken in a systematised way. The increasing burden of regulation, changing regulations in a range of bodies, and the cross-over between finance, operations and academic reporting means continued enhancement of our structures and internal accountability.

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

The College completed various transitions in the finance office to ensure compliance and efficiency. Simona Stanfield returned from maternity leave in September 2022. Mrs. Dana Gheorghe, continued to work in the finance office and completed several qualifications. Mr. Andrew Hollingworth, is the Finance Controller supporting the development of the finance team.

The Governors reviewed their own practice, including the Board Code of Practice Manual and the Constitution. A solicitor specialising in Charity Governance reviewed the Constitution and suggested some clarifications and changes. The Constitution is in the process of being amended in accordance with its provisions for Amendments. The impact of the review will be to clarify and sharpen some of the language.

The Governors have also worked towards a revised committee structure and further development of the processes will be worked on in 2023-24 ensuring good governance continues to be developed.

The Principal was on sabbatical from mid-March to late May 2023, and in her absence Dr. Peter Rae, Vice Principal, became the accountable officer for the College. All matters of significance were managed, and anything material for risk was communicated with the Board of Governors as appropriate.

Benefits to Society

Our Trustees are aware of the guidance on Public Benefit as described by the Charity Commission and take it into account in operating the Charity. The decisions taken by Trustees further the Charity’s benefit to the public.

We benefit wider society by heightening awareness of the role religion can play in advocating for good, bringing peace, reconciling across faith communities, and enabling people from faith backgrounds to develop their own understanding. With students from a range of backgrounds, we ensure also that our students, many employed in the third sector, charities and religious settings will impact wider society by enhanced understanding of the world and the way people think. Character formation, ethical principles, best practice for community development and ways of approaching the world that are respectful and thoughtful are also part of the intended outcomes of our work.

Globally our students take roles in leadership at a number of levels, from institutional leadership to engagement in government. At the grassroots they are people committed to seeing communities and individuals thrive.

Our undergraduate and postgraduate students are drawn from across the UK and beyond and range in age from 18- mid 70s.

The College has significant success in ensuring many underrepresented groups achieve access to education. Year on year we are investing in enhancing and supporting students from low participation areas and communities to thrive.

Our provision is for a wide range of people but is also attracting mature students with a direct interest in developing themselves further as professionals in a range of industries.

We enable:

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

Access and Participation (APP)

In accordance with the Higher Education and Research Act 2017 our Governing body is responsible for overseeing NTC’s Access and participation plan. This year Governors:

NTC identified clear priorities as the focus of our APP plan supporting student access to higher education, and to create an environment where students can flourish and achieve their full potential.

NTC’s plan focuses on:

Connecting with schools and churches in areas of unique need and low participation is a unique part of NTC. We have continued to emphasise this over the year, specifically engaging with communities who do not tend to join HE. The emphasis has been both on younger people and mature students.

We engage with a range of people who have disabilities and the College has invested in provision for these students. The high level of students with disabilities is viewed as positive by the College, as we fulfil our aim of being an accessible and flexible place of learning. We believe that our approach to excellent support, wrap-around care, and small class sizes mean that the College is a safe place for people with additional needs to find their way to success. Our commitment to widening participation is one of the hallmarks of our educational provision.

Use of volunteers

The College is grateful to and indebted to, those members of our denomination who, in response to the needs identified, are able to offer themselves as volunteers to assist in non–academic areas of the College life. These include maintenance work, housekeeping assistance, general clerical work, cooking, library support and a range of other roles.

During their period of volunteering, all volunteers operate to the guidance of the College’s policies and procedures and are covered under the required Health and Safety regulations.

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

Grant making policy

The College takes the view that it will do whatever is in its power to assist students, particularly those from the majority world, in meeting the cost of their tuition and living expenses. Accordingly, several scholarships have been established through donations to the College that qualifying students can benefit from. The scholarships are restricted and treated as such in the accounts.

The College gives a range of grant support and scholarships with the clear aim of caring for those who may not access education. This also enables students from non-traditional backgrounds to succeed. We have solicited specific funds for the Global South and for people from black and other ethnic backgrounds to access and develop in education. We see this as a key part of our orientation around caring for those on the margins.

We have agreed our Access and Participation Plan with the Government.

Financial review

The College’s tuition fees are reviewed on an annual basis. Our aim in setting fees is always to be commensurate with the sector and achieving a breakeven operating budget.

The College’s finances were impacted significantly by Covid-19 and we continue to work through the legacy effect of the pandemic. Salary pay cuts made in 2019-20 were redressed and an uplift for all members of the team was given in the new financial year on the basis of our financial position.

Following careful management, the College’s year end results were a surplus of £39,286.

We completed work through the year 2022/23 of the grant ‘Science for seminaries.’ This included funds towards delivery of courses that demonstrate theology and science as a conversation partner. Our Academic Deans, Dr. Peter Rae and Dr. Jacob Lett are overseeing the final provisions of the grant, with the faculty team supporting the delivery of materials alongside local specialists.

We had received a legacy from Mrs. Eunice Longworth, a long time supporter and friend of the college. Her legacy was gifted for General Scholarship and was an unexpected gift. A further third tranche was given to the MWRC, however the solicitors alerted us to a legal dispute relating to it and asked us to retain the monies. In December 2022 the issue was resolved and the funds were released to the MWRC.

The projections for the coming year, which will end 30[th] June 2024 have been based on the previous year’s income and expenditure (year ended 30[th] June 2023). We have reviewed these internally using a number of points of triangulation: student trends, data relating to the sector, our own history and engagement in key recruitment settings and so, we anticipate:

a) an at target student uptake of HE places at the College at Undergraduate level, still below prepandemic levels but more robust than 2022-23

b) a healthy intake at Masters’ level matching 2021-22

c) a stable intake at PhD level

c) robust rental of the facilities

d) accommodation at least 90% of capacity

e) strategic developments and investment in order to move the College forward in funding pathways including ongoing funding commitments from the Church of the Nazarene

f) a significant increase in fees from the University of Manchester for programmes, pathways and per student

g) an increase in mortgage repayments due to interest rate rises

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

The Trustees and the Senior Leaders of the College have kept the finances under constant and regular review.

The restricted funds held by the College for the purposes of Scholarships and Principal’s Project have been drawn upon in accordance with policy and the intended purpose of the donations, and these transactions are reflected in the attached financial statements.

Audit Review

The Audit from the year 2022-23 was reviewed by the Governors and responded to.

Alexander Bursk, appointed in 2015, helped the College to continue to ensure we are robust in our financial management and practices. However, as per the College’s policy we sent our audit for tender and have appointed Slade and Cooper as the College’s new auditors.

We continue to have an outside observer who has been a professional risk auditor for an international bank. Though serving in a voluntary capacity, he offers the Governors scrutiny of our practice in meetings. This role is ongoing and will support the development of Governors into 202324 though this will be the last year of this particular arrangement.

Investment Policy

In compliance with the Charity Commissioners' guidance “Charities and investment matters: a guide for trustees" (CC14 last updated on 1 October 2011) the College Governors have implemented an Investment Policy. The key issues addressed are:

This policy is reviewed every two years by the finance sub-committee of Governors, however, any investment decision needing the approval of the finance sub-committee will in turn be referred to the full meeting of Trustees.

Reserves policy

It is the intention of the College Governors to continue a programme of securing a reserve of funds to provide a protection against any temporary downturn in student numbers. The level of reserves to be set aside for this purpose will be in accordance with the Reserves Policy and Governors will determine the amount to be set aside to reach this target on an annual basis where possible.

Amount of reserves held: the unrestricted and restricted funds held in cash at bank and in hand and other assets amount to £3,035,366 of which £2,659,108 were unrestricted and £376,258 were restricted.

The Charity continues to operate as a going concern. The basis of this is student recruitment, the development of additional funding streams for students and the increase in regular donations. Our on-going validation with a world class university also makes us attractive for students and our impressive graduating class in research degree programmes enhances our reputation year on year. Additionally, the property portfolio has a value well in excess of the Balance Sheet valuation and this, should it be required, could be realised to more than cover any unforeseen liabilities. We are actively working towards developing our funds.

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

Principal funding sources

The principal source of funding continues to be the income generated through tuition fees for students plus meeting their accommodation needs through Halls of Residence. A further valued source of funding continues to come from both the General Church of the Nazarene through an operations grant and also from churches in the UK who contribute through their annual budgets to the work of the College. Neither of the latter two sources are either restricted or designated funds.

Administrative Review

The addition of the Compliance committee has enabled the operations side of the College to move towards assurances of excellence in practice. Having identified the burden of responsibility on the Director of Operations the College appointed a People Advisor to support the human resource side of administration.

In September 2022 Dr. Sam Rogers became the Communication and Recruitment Director. He reviewed all marketing spending, reconfigured the team, and is working through a revision of the Website. He is taking a data driven approach to the College’s recruitment.

We also actively participate in government consultations on changes in the higher education authority to keep abreast of any external risk factors.

Core team members have managed and reported within the agreed terms of the Prevent agenda.

Succession planning for the team has been a significant part of the current year, with transition mapping for changing roles at all levels of the organisation. Key changes are the intention to retire of some members of faculty and we are undertaking a review of roles and responsibilities.

Plans for future periods

The College plans for the current period relate to ongoing management of the previously agreed strategic plan. This covers primary areas identified in the implementation and review of the earlier strategic review. These are identified as a) Academic excellence and research led learning, b) Christ-like community focussed.

Within these areas the college has a clear focus on:

Student Recruitment

Programmes of Study

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

Partnerships

Geographical Reach

National and International Profile

Finances

Campus

Governance

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

Following a review of our projected finances and in light of areas identified as key for future development (recruitment, online/digital and succession) the Governors agreed that we needed to invest in key areas for development:

Commissioning a new website - this is underway and will be delivered within the 2023-24 academic cycle.

Key personnel for supporting the development and delivery - we are in the process of putting people in place to support roles, engage in promotion of the College and enhance our delivery

Campus spaces for student satisfaction including a range of quiet study spaces as the library shifts towards a more learning commons approach.

The College continued drawing on our Vision Document 2030. It is a comprehensive and forwardthinking document to enable the College to continue to meet its aims and objectives. In response to the current landscape of theological education it is critical that the College develops, enhancing operations in order to grow to enable a sustainable future. The document will be reviewed and developed by a proposed Strategic innovation and change advisory group, who will report to the Board of Governors. We anticipate that in 2023-24 a new five year strategic plan will be developed.

Academically the College is increasing recruitment into Masters level. It is developing its capacity for flexible and effective learning in a variety of on-line and off-site ways. The College is offering opportunities for intercultural study for students from overseas. We continue to ensure we offer excellence and cutting-edge theological thinking. The College is also working to develop and enhance our core faculty team. We are reviewing key appointments in part of careful succession planning working towards a known plan relating to people who have expressed their intentions to change or retire.

We are also investing in student learning support provision and chaplaincy/counselling services.

This includes:

The appointment of additional learning support officers for masters’ level support The on-going designation of time developing study abroad by one of our Academic Office team (2 hours per week)

The College continues to invest in a research and development project to develop a plan for predegree-level learning and additional programmes.

The College is developing its physical plant in relation to the academic developments which are our core business

The Academic Board continues to explore:

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

The Administrative Council continues to explore:

Structure, governance and management

Governing document

The College is governed under a DECLARATION OF TRUST deed dated 25th June 1970 as amended 2nd February 1990 and again on the 1st February 1991 and the CONSTITUTION as approved by two thirds of the members present and voting at both the North and South District Assemblies of the Church of the Nazarene and as amended from time to time in accordance with the Constitution.

Recruitment and appointment of Governors

The Governors of the College are appointed by election at the Annual District Assemblies of the North and the South Districts of the Church of the Nazarene in the UK. A nomination committee currently proposes names of members of the denomination to the delegates to vote upon, there being an equal number of Governors appointed from each District. In addition to those appointed in this way, the two elected District Superintendents are appointed by virtue of their office as ex officio members of the Board of Governors, and, under the Constitution, up to four additional Governors can be appointed from outwith the denomination and four members-at-large are appointed by the British Isles National Board of the Church of the Nazarene.

The appointment and code of operation of members of the Board of Governors is set out in full in the Constitution of the College.

The Governors of the College are elected and appointed as set out in the Constitution. Within this document the voting Governors are referred to as the Trustees and are unambiguously and collectively accountable for the institutional activities and take all final decisions on matters of fundamental concern for the College. In order to ensure limited liability, the College has a practice of ensuring business liability cover is included in our insurance. In the past year, and stretching into 2023-24 we are reviewing our Constitution and, when it has been approved by our Governors, we will send any amendments to the Charity Commission for approval.

The College’s approach to governance applies the Public Interest Governance principles of the Office for Students. It also follows the good practice for the Higher Education sector identified in “the Higher Education Code of Governance” produced by the Council of University Chairs.

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

Induction and training of trustees

All Governors are made aware of the ethos and mission of the College and participate in regular training programmes to increase their understanding of the role and also the issues affecting the work of the College. Governors are encouraged to access the Charity Commission website on a regular basis to download any and all relevant material and resources that will enhance their ability to fulfil their duties.

There is an Induction programme for newly elected Governors. The College invests in ‘Governance’ Magazine for all governors and has a Board Code of Practice for all who serve in this capacity. Each Governor has access to a dedicated and password protected Governance Moodle site (virtual learning platform).

Organisational structure

The organisational structure of the College is constantly developing as it seeks to meet and fulfil its stated goals and aspirations. The principal point of governance in all matters continues to be the Board of Governors to which all senior staff report, the Principal, Vice Principal, Dean of Faculty, Director of Operations (including the reports from the People Advisor). The Principal meets regularly with the Financial Controller and the Principal and Director of Operations meet with the Finance Controller to review the monthly management accounts.

The Core Team of the College, is the key management group, led by the Principal, for the day-today strategic operations of the College. CLT members attend board meetings as support staff during the year for the majority of items discussed as requested by the board. The process to appoint and set pay for CLT members are determined in accordance with the constitution. The Board of Governors have a remuneration committee which reviews pay structures, professional development financing and ensures that the College is considering pay levels as appropriate to the experience, responsibility and market of the sector. There is no automatic entitlement to annual salary increases. The philosophy of the College emphasises paying its least well-paid staff at least the Real Living Wage. The structure is also relatively flat, with the Core Leadership Team paid well, but within keeping with the Higher Education and the church ministerial pay structures they relate to.

The Board of Governors receives and monitors Risk Reports regularly and the Core team manages risk regularly.

In addition to the Core team and its operations, there are two significant Boards through which all policies and proposals must pass in order to be presented to the Board of Governors for the Trustees vote, these are the Administrative Council and the Academic Board. The Academic Board approves all matters of an academic nature including new programmes, and the Administrative Council receives and approves all matters of a financial and administrative nature, in particular the approval of any proposed change to an existing policy or a new policy.

Below these Boards, a range of operational and reporting Boards meet.

A further committee which implements operational decisions and reviews the cash flow and budgets for the College is the Administrative Council.

In addition, as with all such institutions, a range of other committees meet on a regular basis to deal with the day-to-day operations of the College and which make recommendations to or seek approval from the other bodies mentioned above. These committees include, but are not limited to Faculty, Placement, Student Council, and Library, etc.

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

In the coming year the College will review its internal structures to ensure collaboration, culture and efficiency are baked into our systems. We will revisit how we create and store documents to ensure they are ‘living’ and in use.

We are also undertaking a review of pathways of recruitment, communication and their relationship to our admissions processes to ensure that our recruitment conversation rate is high from first encounter to final admission as a student.

Representation at Board meetings:

The Principal, CLT and student representatives are part of Board of Governor meetings, providing necessary perspectives to support the Board to govern effectively. The Principal, who attends meetings ex officio , and any additional paid member of the team invited into meetings, have full rights of attendance and participation at meetings, but in line with the College’s constitution as a charity, as employees and beneficiaries of the Charity, they do not have voting rights. Student representatives have no less right of participation and are not in any way disadvantaged.

The Governors confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the organisation’s aims and purposes.

Risk management

The risk management strategy of the College is reviewed and a risk assessment completed by the Core Leadership Team and reviewed by the Governors annually in their November meetings. There is a continual process of formulation and development in response to the changing circumstances that could impact upon the work of the College and its fulfilment of its ethos and mission.

The Board of Governors, in considering this important task, take direction from the on-going discussions of the College personnel, both internally and through their meetings with external advisers, and seeks to find ways to mitigate the impact of such risks through proactive planning and transferring of identified risks on an on-going basis.

The most serious risks to NTC’s existence and development are:

In order to ensure these risks do not materialise the College:

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Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2023

Related parties

Any and all related parties are clearly identified in the notes to the Accounts. At each meeting of the Governors there is a conflict of interest form to clearly identify any matters that arise and a register kept.

The elections of trustees from the British Isles South and North District and the ex officio appointments of the District Superintendents mean that from time to time there are transactions between those entities and Nazarene Theological College. This is disclosed in note 14

Statement of Board of Governors’ responsibilities

The Board of Governors is responsible for preparing the Board of Governors’ Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Charity law in England & Wales requires the Board of 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 the income and expenditure of the charity for that period. In preparing the accounts the Board of Governors are required to:

The Board of Governors is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable it to ensure that the Financial Statements comply with the Charities Act 2011 and the provisions of the Constitution. They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

Voting Members of the Board of Governors, who are trustees for the purposes of charity law, who served during the year and up to the date of this report are set out on page 1.

Advisors to the Board who served during the year and up to the date of this report are set out on 4.

Auditors

Slade and Cooper were appointed in 2023.

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP FRS102) and the Charities Act 2011 .

The trustees’ annual report has been approved by the trustees on 25[th] November 2023 and signed on their behalf by

..................................... Mr. Ian Burleigh

18

Independent Auditors’ Report Independent Auditor’s Report to the Trustees of Nazarene Theological College

Opinion

We have audited the financial statements of Nazarene Theological College (the ‘charity’) for the year ended 30 June 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes. 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).

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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 auditor’s report thereon. Our opinion on the financial statements does not cover the other

19

Independent Auditors’ Report (continued)

information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 18, the trustees are responsible for the preparation of 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 assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

20

Independent Auditors’ Report (continued)

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:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at:https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-ofauditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Slade & Cooper Limited Statutory Auditors Beehive Jersey Street Manchester M4 6JG

Date: 29 November 2023

Slade & Cooper Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

21

Nazarene Theological College

Statement of Financial Activities

for the year ended 30 June 2023

Unrestricted
funds
Note
£
Income from:
Donations and legacies
3
126,948
Charitable activities:
4
1,138,030
5
213,005
Investments
6
4,288
Total income
1,482,271
Expenditure on:
Raising funds
7
-
Charitable activities:
9
1,400,817
Total expenditure
1,400,817
81,454
359
11
81,813
Transfer between funds
-
Net movement in funds for the year
81,813
Reconciliation of funds
Total funds brought forward
2,577,295
Total funds carried forward
2,659,108
Realised/unrealised gains/(losses) on
investments
Other trading activities
Net income/(expenditure) before
net gains/(losses) on investments
Net income/(expenditure) for the
year		 Restricted
funds
£
238,219
-
-
1,673
239,892
-
282,419
282,419
(42,527)
-
(42,527)
-
(42,527)
418,785
376,258		 Total funds
2023
£
365,167
1,138,030
213,005
5,961
1,722,163
-
1,683,236
1,683,236
38,927
359
39,286
-
39,286
2,996,080
3,035,366		 Total funds
2022
£
278,137
1,013,358
205,527
2,834
1,499,856
2,686
1,441,751
1,444,437
55,419
49,713
105,132
-
105,132
2,890,948
2,996,080

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

22

Nazarene Theological College

Balance Sheet as at 30 June 2023

Note
£
£
Fixed assets
Tangible assets
17
1,918,333
Investments
18
161,402
Total fixed assets
2,079,735
Current assets
Debtors
20
191,459
Cash at bank and in hand
21
1,130,022
Total current assets
1,321,481
Liabilities
Creditors: amounts falling
due in less than one year
22
(217,868)
Net current assets
1,103,613
Total assets less current liabilities
3,183,348
Creditors: amounts falling
due after more than one year
24
(147,982)
Net assets
3,035,366
Funds of the charity:
Restricted income funds
25
376,258
Unrestricted income funds
26
2,659,108
Total charity funds
3,035,366
2023		 £
£
1,925,806
161,043
2,086,849
206,422
1,144,214
1,350,636
(282,500)
1,068,136
3,154,985
(158,905)
2,996,080
418,785
2,577,295
2,996,080
2022		 £
£
1,925,806
161,043
2,086,849
206,422
1,144,214
1,350,636
(282,500)
1,068,136
3,154,985
(158,905)
2,996,080
418,785
2,577,295
2,996,080
2022
2,086,849
1,068,136
3,154,985
(158,905)
2,996,080
418,785
2,577,295
2,996,080

The notes on pages 25 to 46 form part of these accounts.

Approved by the trustees on 25 November 2023 and signed on their behalf by:

Mr. Ian Burleigh (Chair)

23

Nazarene Theological College

Statement of Cash Flows for the year ending 30 June 2023

Note
Cash provided by/(used in) operating activities
30
Cash flows from investing activities:
Dividends, interest, and rents from investments
Purchase of tangible fixed assets
Cash provided by/(used in) investing activities
Cash flows from financing activities:
Repayment of borrowing
Cash provided by/(used in) financing activities
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Increase/(decrease) in cash and cash
equivalents in the year		 2023
£
18,844
5,961
(23,196)
(17,235)
(15,801)
(15,801)
(14,192)
1,144,214
1,130,022		 2022
£
122,362
2,834
-
2,834
(16,259)
(16,259)
108,937
1,035,277
1,144,214

24

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023

1 Accounting policies

The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), second edition - October 2019 (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Accounting Practice.

The accounts (financial statements) have been prepared to give a 'true and fair view' and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), second edition - October 2019, rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Nazarene Theological College meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b Preparation of the accounts on a going concern basis

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.

25

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

c Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity 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 charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of a provision of a specified service is deferred until the criteria for income recognition are met.

d Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised; refer to the trustees’ annual report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

e Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

26

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

f Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity.

Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.

Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

g Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity's programmes and activities. These costs have been allocated entirely to charitable activities, which reflect the use of resources.

i Bursaries payable

Bursaries payable are recognised in the year when an award has been approved by the trustees through the budget setting process and communicated to the recipient during the year by the finance team. Where such bursaries have not yet been paid at the end of the year, they are included within current liabilities.

j Operating leases

Operating leases are leases in which the title to the assets, and the risks and rewards of ownership, remain with the lessor. Rental charges are charged on a straight line basis over the term of the lease.

27

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

k Tangible fixed assets

Individual fixed assets costing £2000 or more are capitalised at cost and are depreciated over their estimated useful economic lives as follows:

l Fixed asset investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Charity does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

m Debtors

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

n Cash at bank and in hand

Cash at bank and cash 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.

o Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

p Financial instruments

The charity 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.

28

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

q Pensions

The charity contributes to defined contribution pension schemes on behalf of its employees. The assets of these schemes are entirely separate to those of the charity. The pension cost shown represents contributions payable by the charity on behalf of the employees and it has no other liabilities to these schemes.

2 Legal status of the charity

The charity is an unincorporated charity, registered as a charity in England & Wales.

3 Income from donations and legacies

Current reporting period
Donations
Total
Previous reporting period
Donations
Total		 Unrestricted
£
126,948
126,948
Unrestricted
£
99,911
99,911		 Restricted
£
238,219
238,219
Restricted
£
178,226
178,226		 Total 2023
£
365,167
365,167
Total 2022
£
278,137
278,137

29

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

4 Income from charitable activities

Current reporting period
Grant and fee income
Grant income from OFS
Fee income from taught awards
Fee income from research awards
Fee income from non-qualifying courses
Bookshop sales
Education services grants (KC)
District budgets
Total
Previous reporting period
Grant and fee income
Grant income from OFS
Fee income from taught awards
Fee income from research awards
Fee income from non-qualifying courses
Bookshop sales
Education services grants (KC)
District budgets
Total		 Unrestricted
£
18,388
507,190
479,550
22,595
114
42,515
67,678
1,138,030
Unrestricted
£
18,216
456,037
397,392
32,956
300
50,100
58,357
1,013,358		 Restricted
£
-
-
-
-
-
-
-
-
Restricted
£
-
-
-
-
-
-
-
-		 Total 2023
£
18,388
507,190
479,550
22,595
114
42,515
67,678
1,138,030
Total 2022
£
18,216
456,037
397,392
32,956
300
50,100
58,357
1,013,358

30

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

5 Income from other trading activities

2023
£
Lettings and commissions
213,005
Employer' allowance and JRS income
-
Sundry income
-
213,005
All income from other trading activities is unrestricted.		 2022
£
185,406
12,692
7,429
205,527
6
Investment income
Current reporting period
Income from bank deposits
Income from investment properties
Other investment income
Previous reporting period
Income from bank deposits
Income from investment properties
Other investment income
7
Cost of raising funds
Cost of raising donations and
legacies - Donations		 Unrestricted
£
1,517
2,640
131
4,288
Unrestricted
£
21
2,640
127
2,788
2023
£
-
-		 Restricted
£
1,673
-
-
1,673
Restricted
£
46
-
-
46
2022
£
2,686
2,686		 Total 2023
£
3,190
2,640
131
5,961
Total 2022
£
67
2,640
127
2,834

All expenditure on cost of raising funds is unrestricted.

31

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

8 Analysis of expenditure on charitable activities by fund type

Current reporting period
Facilities
Education
Support costs (see note 9)
Previous reporting period
Facilities
Education
Support costs (see note 9)		 Unrestricted
funds
£
197,195
589,123
614,499
1,400,817
Unrestricted
funds
£
198,039
682,957
436,472
1,317,468		 Restricted
funds
£
209,697
72,722
-
282,419
Restricted
funds
£
50,764
72,722
797
124,283		 Total 2023
£
406,892
661,845
614,499
1,683,236
Total 2022
£
248,803
755,679
437,269
1,441,751

In accordance with the Access and Participation Plan, this year the College has spent £18,400 (2022: £18,235) on Access Investment, £5,489 (2022: £2,666 on Financial Support bursaries for students from underrepresented groups, £66,450 (2022: £46,320) on University Fee waivers and £2,265 (2022: £3,375) on harsdhip funds. In addition, £2,000 (2022: £2,000) has been spent on Research and Evaluation Investment for new courses.

9 Analysis of expenditure on charitable activities by activitity type

Current reporting period
Facilities
Education
Governance costs		 Activities
undertaken
directly
£
406,892
661,845
-
1,068,737		 Support
costs
£
564,491
25,954
24,054
614,499		 Total 2023
£
971,383
687,799
24,054
1,683,236

32

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

Previous reporting period
Activities
undertaken
directly
£
Facilities
248,803
Education
755,679
-
1,004,482
10
Analysis of support costs
Current reporting period
Basis of
apportionment
Staff costs
General office
Finance costs
Governance costs
Travel and accommodation
Publicity
Events
Depreciation
Previous reporting period
Basis of
apportionment
Staff costs
General office
Finance costs
Governance costs
Travel and accommodation
Publicity
Events
Depreciation
Governance cost
Professional costs and sundries
Professional costs and sundries		 Support
costs
£
380,508
39,179
17,582
437,269
Facilities
£
366,465
75,716
15,814
24,054
18,659
36,652
14,083
30,669
6,433
588,545
Facilities
£
189,216
68,409
11,385
17,582
15,708
15,306
1,725
27,475
51,284
398,090		 Total 2022
£
629,311
794,858
39,179
1,463,348
Education
£
-
-
-
-
-
-
-
-
25,954
25,954
Education
£
-
-
-
-
-
-
-
-
39,179
39,179		 Total 2023
£
366,465
75,716
15,814
24,054
18,659
36,652
14,083
30,669
32,387
614,499
Total 2022
£
189,216
68,409
11,385
17,582
15,708
15,306
1,725
27,475
90,463
437,269

33

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

11 Net income/(expenditure) for the year

This is stated after charging/(crediting): 2023 2022
£ £
Depreciation 30,669 27,475
Operating lease rentals:
Equipment 4,645 4,834
Auditor's remuneration - audit fees 6,360 6,960
Auditor's remuneration - accountancy fees 2,160 2,040

Also included within expenditure are bursaries and scholarships of £104,782 (2022: £84,578) of which £76,140 (2022: £72,722) was paid from restricted funds.

34

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

12 Staff costs

Staff costs during the year were as follows:

ff costs during the year were as follows:
Wages and salaries
Social security costs
Pension costs		 2023
£
722,555
53,286
19,027
794,868		 2022
£
634,958
44,828
17,577
697,363

No employee has employee benefits in excess of £60,000 (2022: Nil).

The average number of staff employed during the period was 49.59 (2022: 49). The average full time equivalent number of staff employed during the period was 26 (2022: 24.9) and is analysed as follows:

Academic
Student support
Administration
Chaplaincy
Housekeeping
Library
Manchester Wesley Research Centre
Maintenance
Publicity and recruitment
Archivist		 2023
No.
9.2
4.3
6.6
0.8
1.0
0.8
1.2
1.3
0.7
0.2
26		 2022
No.
9.6
2.7
6.3
0.6
0.9
0.8
1.3
1.5
1.0
0.2
24.9

35

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

Key management Personnel

Key management Personnel
Salary
Pensions
Other taxable benefits		 2023
£
42,434
1,273
-
43,707		 2022
£
40,445
1,243
1,000
42,688

This remuneration package is in line with others in the School of Theology sector and is in lin with value and performance delivered. The performance is reviewed annually by the Board of Governors and the Remuneration is set by the Board of Governors, having due consideration to performance and sector wide factors.

i) The head of the providers' basic salary is 1.3 (2022: 1.8) times the median pay of staff, where the median pay is calculated on a full-time equivalent basis for the salaries paid by the provider to its staff

ii) The head of the providers' total remuneration is 1.2 (2022: 1.3) times the median total remuneration of staff, where the median total remuneration is calculated on a full-time equivalent basis for the total remunderation by the provider of its staff.

13 Pensions and other post retirement benefits

The amount recoggnised in expenditure as an expense in relation to defined contribution plans was £15,822 (2022: £17,577)

Pension costs are attributed to the activites in which those employees for whom they relate are engaged.

36

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

14 Trustee remuneration and expenses, and related party transactions

Neither the management committee nor any persons connected with them received any remuneration or during the year (2022: £10,462).

Two members of the management committee received travel and subsistence expenses during the year of £380 (2022:£388).

Unrestricted donations of £2,080 (2022: £1,510) were received from trustees during the year.

Income of £21,000 (2022: £31,400) was received from the Church of the Nazarene British Isles Southern District, of which Reverend C McCann is also a trustee.

Income of £46,678 (2022: £26,957) was received from the Church of the Nazarene British Isles Northern District, of which Revd R Turner is also a trustee.

No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity, including guarantees, during the year (2022: £nil).

15 Government grants

The government grants recognised in the accounts were as follows:

OFS 2023
£
18,388
18,388		 2022
£
18,216
18,216

37

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

16 Corporation tax

The charity is exempt from tax on income and gains falling within Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

17 Fixed assets: tangible assets

Cost
Additions
Disposals
Depreciation
Charge for the year
Disposals
Net book value
At 1 July 2022
At 30 June 2023
At 1 July 2022
At 30 June 2023
At 30 June 2023
At 30 June 2022		 Land and
buildings
£
2,294,885
-
-
2,294,885
394,727
22,949
-
417,676
1,877,209
1,900,158		 Fixtures and
fittings
£
192,701
21,050
-
213,751
167,053
7,005
-
174,058
39,693
25,648		 Equipment
£
28,827
2,146
-
30,973
28,827
715
-
29,542
1,431
-		 £
2,516,413
23,196
-
Total
2,539,609
590,607
30,669
-
621,276
1,918,333
1,925,806

38

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

18 Investments

Add: additions to investments at cost
Disposals at carrying value
Add net gain/(loss) on revaluation
Investments at fair value comprised:
Listed investments
Investment properties
Market value at the end of the year
Market value at the start of the year
Cash
held
by
investment
broker
pending
reinvestment		 2023
£
161,043
-
-
359
161,402
-
161,402
3,069
158,333
161,402		 2022
£
111,330
-
-
49,713
161,043
-
161,043
2,710
158,333
161,043

Investments are all held at valuation.

Investment properties

The investment property was revalued on 24 June 2022 by Richard N D Smth BSc (Hons), MRICS on behalf of Fifield Glyn Chartered Surveyors.

Financial assets held at fair value

Investments in listed shares are stated at their market value at the balance sheet date.

39

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

19 Net gains on investments

20
Debtors
Trade debtors
Prepayments and accrued income
21
Cash at bank and in hand
Cash at bank and on hand
Gains/(losses) on listed
investments
Gains/(losses) on other
investment assets
Gains/(losses) on investment
property		 Unrestricted
Funds
£
-
359
359		 Total Funds
2023
£
-
359
359
2023
£
156,138
35,321
191,459
2023
£
1,130,022
1,130,022		 Unrestricted
funds
£
50,333
(620)
49,713
2022
£
161,102
45,320
206,422
2022
£
1,144,214
1,144,214		 Total Funds
2022
£
50,333
(620)
49,713

40

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

22 Creditors: amounts falling due within one year

22
Creditors: amounts falling due within one year
Bank loans and overdraft
Loan
Trade creditors
Other creditors and accruals
Deferred income
Taxation and social security costs
23
Deferred income
Will beneficiary
Projects
Accommodation income
Deferred grant carried forward		 2023
£
14,431
-
110,753
65,874
23,097
3,713
217,868
2023
£
-
15,707
7,390
23,097		 2022
£
19,309
100,000
56,493
45,879
51,199
9,620
282,500
2022
£
28,399
22,800
-
51,199

£23,097 (2022: £22,800) relates to income from a two year funding of two projects where the obligations for the second year warrant deferment until the obligations are fulfilled by the college.

41

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

24 Creditors: amounts falling after more than one year

Bank loans and overdrafts 2023
£
147,982
147,982		 2022
£
158,905
158,905

The Bank loans of £162,413 (2022: £178,214) are secured by a first legal charge over the charity's property at Dene House, Didsbury, which is included in the accounts at net book value of £1,918,334.

Included within creditors: amounts falling due after more than one year is an amount of £74,587 (2022: £81,671) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.

Mortage payments falling due after more than five years are due to be paid in instalments. The loans are repaid on variable interest basis, and as such instalments will vary from current rate of £2,106 per month, including interest at the rate applicable at the time.

25 Analysis of movements in restricted funds

Total
Student
Scholarship
Development
Fund
Science for
seminaries
Current reporting
period
Scottish School
of Christian
Mission		 Balance at 1
July 2022
£
223,679
141,477
23,327
30,302
418,785
 Income
£
83,628
133,464
-
22,800
239,892		 Expenditure
£
(72,722)
(146,595)
(10,000)
(53,102)
(282,419)		 Transfers
£
-
-
-
-
-		 Balance at
30 June
2023
£
234,585
128,346
13,327
-
376,258

42

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

Total
Previous
reporting period
Student
Scholarship
Development
Fund
Scottish School
of Christian
Mission
Science for
seminaries		 Balance at 1
July 2021
£
185,937
145,532
33,327
-
364,796		 Income
£
100,464
40,608
-
37,200
178,272		 Expenditure
£
(62,722)
(44,663)
(10,000)
(6,898)
(124,283)		 Transfers
£
-
-
-		 Balance at
30 June
2022
£
223,679
141,477
23,327
30,302
418,785

The Student Scholarship Fund is made up of individual donations with specific instructions how the money should be used, according to the wishes of individual donors.

The Development Fund represents donations made to the annual Principal's Project and expenditure relating thereto.

The Scottish School of Christian Mission Fund represents monies received from that institution when its work was incorporated into that of the Nazarene Theological College, to be used for student bursaries only.

Science for Seminaries fund relates to specific income received to be spent on the Science for Seminaries research and teaching project.

43

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

26 Analysis of movement in unrestricted funds

General fund
Name of
Previous reporting
period
General fund
Current reporting
period
General fund		 Balance at 1
July 2022
Income
Expenditure
£
£
£
2,577,295
1,482,271
(1,400,817)
2,577,295
1,482,271
(1,400,817)
Balance at 1
July 2021
Income
Expenditure
£
£
£
2,526,152
1,321,584
(1,320,154)
2,526,152
1,321,584
(1,320,154)
Description, nature and purposes of the fund
Unrestricted funds		 Transfers
£
-
-
Transfers
£
-
-		 Gains and
losses
£
359
359
Gains and
losses
£
49,713
49,713		 As at 30
June 2023
£
2,659,108
2,659,108
As at 30
June 2022
£
2,577,295
2,577,295

44

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

27 Analysis of net assets between funds

Current Reporting Period
Tangible fixed assets
Fixed asset investments
Net current assets/(liabilities)
Creditors of more than one year
Total
Previous Reporting Period
Tangible fixed assets
Fixed asset investments
Current assets
Creditors of less than one year
Creditors of more than one year
Total		 General
fund
£
1,918,333
161,402
727,355
(147,982)
2,659,108
General
fund
£
1,850,424
161,043
884,433
(159,700)
(158,905)
2,577,295		 Designated
funds
£
-
-
-
-
Designated
funds
£
-
-
-
-
-		 Restricted
funds
£
-
376,258
-
376,258
Restricted
funds
£
75,382
-
466,203
(122,800)
-
418,785		 Total
£
1,918,333
161,402
1,103,613
(147,982)
3,035,366
Total
£
1,925,806
161,043
1,350,636
(282,500)
(158,905)
2,996,080

28 Analysis of changes in net debt

Cash at bank and in hand
Debt due within one year
Debt due after one yeear		 At 1 Jul
2022
£
1,144,214
(19,309)
(158,905)
966,000		 Cash flows
£
(14,193)
4,878
10,923
1,608		 At 30 Jun
2023
£
1,130,021
(14,431)
(147,982)
967,608

45

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2023 (continued)

29 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as

Equipment Equipment
2023 2022
£ £
Less than one year 5,348 5,931
One to five years 4,408 9,723
9,756 15,654
Reconciliation of net movement in funds to net cash flow from operating act
2023 2022
£ £
Net income/(expenditure) for the year 39,286 105,132
Adjustments for:
Depreciation charge 30,669 27,475
(Gains)/losses on investments (359) (49,713)
Dividends, interest and rents from investments (5,961) (2,834)
Repayment of borrowing 15,801 16,259
Decrease/(increase) in debtors 14,963 (32,162)
Increase/(decrease) in creditors (75,555) 58,205
Net cash provided by/(used in) operating 18,844 122,362

30 Reconciliation of net movement in funds to net cash flow from operating activities

46