2024-06-30-accounts - Nazarene Theological College

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Charity Number: 526675

NAZARENE THEOLOGICAL COLLEGE

Financial Statements and Governors’ Report for the year ended 30[th] June 2024

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

The Board of Governors presents its report and audited financial statements from 1[st] July 2023 to 30[th] June 2024.

Reference and Administrative Details

Names of the charity trustees who manage the charity and were in place in 2023-2024.

Name	Position on Governors	Voting membery/n	Term	Body of Appointment	Committee
1. Mr. Ian Burleigh	Chair Member at large	Yes	Jan 26th 2019-(Jan 2022) Jan 22-Mar 2025	National Board Appointee: section 3	Risk, Audit Governance/ Remuneration/ FINANCE and ESTATES COMMITTEE/ right of all committees
2. Mr. Philip Howard	Vice Chair Member at large	Yes	Nov 21-Nov 2024	National Board Appointee: Section 3	Risk, Audit Governance/ FINANCE and ESTATES COMMITTEE/ Remuneration
3. Mr Steven Leach	Secretary Member at large	Yes	Jan 26th 2019- Jan 2022 Jan 22-Mar 2025	National Board Appointee: Section 3	Risk, Audit Governance/Compliance and Employment
4. Rev. Carl McCann	Ex officio	Yes	April 17th2021 4 year term	British Isles South District	Risk, Audit Governance/ Remuneration/ FINANCE and ESTATES COMMITTEE
5. Rev. Ruth Turner	Ex officio	Yes	May 15th 2021 2 year term March 2024 4year term	British Isles North District	Risk, Audit Governance
6. Rev Deirdre Brower Latz	Ex officio	Yes	13/11/2024		Risk, Audit /Governance & Finance - right of all committees
7. Ms Esther Newton	Student Body President	Yes	-May 24-May 2025		ETHOS, COMMUNITY, & RECRUITMENT
8. Mr. Finlay MacKinnon	District lay representative	Yes	Mar 14th2022- Mar 2025	British Isles North District	Academic and Educational Quality
9. Mr. Graham Greenlee	District lay representative	Yes	March 11th 2024-March 2027	British Isles North District	Academic and Educational Quality
10. Rev. Lorraine Bell	District elder in representative	Yes	April 17th 2021-Mar 2024 Mar 11th 2024-2027	British Isles North District	ETHOS, COMMUNITY, & RECRUITMENT
11. Rev. Dr. Ken Baker	District elder representative	Yes	March 9th 2024-2027	British Isles South District	ETHOS, COMMUNITY, & RECRUITMENT
12. Mr Mark Bolton	District lay the representative	Yes	March 9th 2024-2027	British Isles South District	COMPLIANCE & EMPLOYMENT
13. Mrs Helen Roberts	District lay representative	Yes	Appointed 10 March 2023 – March 2026	British Isles South District	COMPLIANCE & EMPLOYMENT

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

14. Rev. Arthur Snjiders	Member at large	Member at large	Yes	Nov 28th2020- Nov 2023 Nov 2024-2027	National Board Appointee: Section 3	Academic and Educational Quality
15. Mr. Gareth Lawson	Board co-option		No	April 17th 2021-Nov 2024	Board of Governors Section 5	STRATEGY, INNOVATION & CHANGE ADVISORY GROUP FINANCE & ESTATES
16. Mrs. Rosemary Arnold Knights	Board co-option		No	Nov 28t Kim h 2020-May 2023 May 2023-May 2026 Second term May 2023-Nov 2026	Board of Governors Section 5	ETHOS, COMMUNITY, & RECRUITMENT
17. Mrs. Shirley Berry	Board co-option		No	Jan 2023-Jan 2026	Board of Governors Section 5	ETHOS, COMMUNITY, & RECRUITMENT
18. Mr Iain McGookin	Board co-option		No	May 2025-May 2028	Board of Governors Section 5	COMPLIANCE
19. 19. Rev. Antonie Holleman	Regional Education Coordinator Ex officio					TBD
For circulation/Min utes
Rev. Dr. Klaus Arnold	Commissioner International Boa in rd of Education		No	2020-	General Church	Academic and Educational Quality
Rev. Mark Louw	New Regional Director		No	2024-	Eurasia Region

Rev. Jim Ritchie	Eurasia Regional		No	2020-Feb 24	Eurasia Region	Academic and Educational
	Director					Quality

		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

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

Names of the charity trustees who completed their term of office in 2023-2024.

Rev. Osahon Ogbeiwi served until March 2024. Mrs. Katy Dawson served until March 2024. Mr Iain McGookin served until March 2024 (And was subsequently co-opted by the board)

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)

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 Associate Dean and Research Chair Rev. Dr. Jacob Lett Director of Research Dr. Geordan Hammond Director of Operations Ms. Pauline McKendrick People Advisor Mrs Debi Green Finance Manager Mrs. Simona Stanfield Finance Consultant Mr. Andrew Hollingworth

Registered Office

Nazarene Theological College Dene Road Didsbury Manchester M20 2GU

Website : www.nazarene.ac.uk

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

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

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

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,

a) Operating as an institution within the Higher Education sector in the United Kingdom but as an integral part of the Church of the Nazarene, the College shall serve the UK and global Nazarene community as well as the wider Christian community.
b) Providing the church’s philosophical and theological framework which at all times is rooted in the biblical and doctrinal commitments to the Wesleyan tradition and accountable to the stated mission of the denomination.
c) Guiding all those who participate in its life by accepting, nurturing and expressing in service to the church and the world a consistent and coherent Christian understanding of social and individual behaviour.
d) Providing a curriculum quality of instruction and evidence of scholarly achievement that will prepare graduates at both undergraduate and postgraduate levels to function effectively in the various vocations of Christian discipleship and ministry.

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,

a) Providing access to the College’s library facilities to external memberships
b) Providing access to the resources and library of the Manchester Wesley Research Centre which is housed within the College’s facilities
c) Providing access to the resources and library of the Manchester Centre for the Study of Christianity and Islam which is housed within the College’s facilities
d) Providing access to the resources and library of the Manchester based arm of the Movement for Justice and Reconciliation.

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

e) Providing access to the College’s facilities for use by local organisations, other educational bodies, churches, public open days and through participation in local and national community events.
f) Assisting students as and when practicable and necessary through a policy of bursaries or hardship grant aid in order to meet their tuition and living costs.

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:

a) Agreement and implementation of the Strategic objectives of the College centred upon key areas:
Identification of the Foundation on which the College is built
Institutional Identity
Academic Development that is research led and practice driven
Christ-like community formation
b) Areas of focus were reviewing and enhancing:
Partnership and Collaborative Development
Administrative Development
Finance and Fundraising
Faculty Development
Publicity and Recruitment
b) Continuing Course Delivery of our undergraduate programmes.
c) Prepare a plan for hybrid delivery including online markets
d) On-going registration of the College with the UK Borders Agency as a Tier 4 sponsor for students has been maintained and our sponsorship is carefully monitored. This was reviewed in the year and continued.
e) The College received an overall satisfaction rating in the National Student Survey for 2023-24 of 92% (against the sector average of 71%). We are reviewing the responses to those questions we received lower than 100% and are responding to them as we are able. They focus on three areas: mental health support; access to e-materials and digital learning and student expression.
f) Key personnel appointed in both student support and administrative areas ensure the smooth running of academic administration and high level of professionalism.
g) New Registrar’s appointed and a new administrative and admissions team have taken our admissions processes forward
h) Fully transitioned Post-graduate degree support to Dr. Lett.
i) Fully transitioned the Director of Research from Dr. Hammond to identify Dr. Hildebrandt as a successor
j) Access to learning through increased investment in digital learning materials.
k) Continued investment in onsite campus-based IT in order to ensure our communication and digital services continue to be excellent.
l) Major investment in servers to support the development of online learning and the ongoing robustness of the systems.
m) Fundraising programmes to secure funding for the future, including developing Legacy giving,
n) Library support and funds for Campus development continued to be a focus,
o) Funds were received for reroofing of campus buildings, refurbishment of some areas and increased efficiencies in new boilers across the property.
p) ‘Friends of NTC’ with the Vice-Principal, Dr. Peter Rae and Mr. Steven Clarkson overseeing this area has continued.
q) Accessing Government provision as enabled, particularly focussing on the Access and Participation Plan.
r) Promoting the College in all areas and recruiting students at both undergraduate and postgraduate levels.

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

s) Non-validated online courses in order to serve constituents and develop our profile including the development and delivery of a new pre-degree programme called ‘Theological Foundations’ is underway with monitoring on the impact of these programmes
t) Attract and support students from non-traditional backgrounds focussing on progression.
u) Invested in research for developing online community in order to ensure we can meet our objectives in this area.
v) Investing in the development of a new programme in Counselling which will be taken to the University for approval in Autumn of 2024 for recruitment in 2025.

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. This year the College had its revalidation visit and the outcome was positive. The scrutiny of the University commended us in several areas and gave some suggestions for ways we can continue to develop our programmes.

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 transitioning from validation by the National Youth Agency and the teaching-out is nearly complete. A restructuring of the placement based programmes to ensure additional quality assurance is underway for delivery in 2025-2026.

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)

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.

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 number of students on research programmes is 33, with 4 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.

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

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.

This year a new appointment in International Education was developed and a new appointment will be made in 2025. The ongoing relationship with the International Church of the Nazarene has led to further plans for teaching and engagement in South and Central America, India and in some African Nations.

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 main administrative building at the College was completed as was the new accessibility walkway to the Café area of the campus.

The disability audit recommendations have been mapped onto a development plan for 2024 and beyond. Developed 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.

The Compliance committee has been active throughout the year, ensuring that all deadlines are managed and all points of compliance satisfied. 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.

Our finance systems continue to be managed to ensure compliance and efficiency. With Mr. Hollingworth as the Finance Controller, the Supervisor and Student finance managers have continued to develop their skills in leadership as well as robust financial practice. We have carefully managed student debt and have worked to ensure good processes in all our accounting practice.

As a result of a lower than required intake, our new Communication and Marketing Director took a forensic and data based review of all our marketing work. The website had a problem in its site map and some of our data was not captured as well as it might be, the result was a new website, new host, and a new approach to marketing. The impact of that will be rolled out over at least one year, however the immediate signs are positive with increased traffic, engagement and enrolment.

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

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. We are awaiting Charity Commission approval for regulated alterations.

The Governors continued to bed in a revised committee structure ensuring good governance continues to be developed.

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:

access to the grounds by the wider community in keeping with the ethos and values of the College
● provision of theological education to the wider community via our Manchester Bible School and Theological Foundation pre-degree programmes
access of means-tested bursaries and scholarship
access to listening services
the provision of subsided access to our theological library facilities for students, members of the local Christian community
access to refreshments to the wider community at 11am daily

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:

a) received an update on the plan and its implications for our organisation
b) received reports from the Academic Dean and Registrar relating to the outcomes of our students

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

c) ensured that funds provided by OfS (including APP) and the Department for Education have been applied in accordance with the relevant terms and conditions
d) ensured that the APP expenditure was in keeping with our commitments to offer direct financial support to current and future students.

The College has 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.

The College’s plan focuses on:

supporting access to higher education
ethnic minority student success and progression
students from low-participation neighbourhoods

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 and beyond, 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.

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 and are working on a revised plan for 2025 as required by the OfS.

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

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.

This year has been particularly difficult with lower than anticipated recruitment which led to a large deficit. The team took decisions for some reduction in pay, freezing professional development, some redeployment of team members, changes to external contracts and engaged in rigorous review of all our spending.

Following careful management, the College’s year end results were a surplus of £15,486.

We completed work through the year 23/24 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.

The projections for the coming year, which will end 30[th] June 2025 have been based on the previous year’s income and expenditure (year ended 30[th] June 2024). 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 pre-pandemic levels and in line with 2023-24

b) a stable intake at Masters’ level matching 2023-24

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 continued higher interest rates

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 2023-2024 was reviewed by the Governors and responded to.

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:

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

a) the need for enough resources for the charity to carry out its present and future activities effectively
b) the level of acceptable risk and how to manage it, and
c) the charity’s stance on ethical investment

This policy is reviewed every two years by the finance sub-committee of Governors. Our investment policy was reviewed and approved in 2023-2024

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 £3,050,852 of which £2,556,553 were unrestricted and £494,299 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 ongoing 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.

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 2023 Mr Nate Spinaci became the Communication and Marketing 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.

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

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. We are undertaking a review of roles and responsibilities and working towards appointments in several key areas in the coming one to five years. To the best of our ability we identify those intending to retire or leave for other purposes and create a map and timeline of how to transition. institutional stability is important and key is a healthy and sustainable professional team.

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:

we will widen student recruitment including reaching new markets
ensure that the education experience of current students remains positive
offer continued improvements to our courses
develop pipelines in pre-degree marketing

Programmes of Study

we will consolidate and review our programmes of study including in the Asian Christian Studies and Community Development areas
we will seek further approvals for online offerings at MA and BA level moving from synchronous to asynchronous in some areas
we will evaluate, review and revise our pastoral, social and practical theology subject area
we will make decisions regarding the development and form of our youth work programme, shifting it towards ministry our programmes following a rolling review
we will continue to develop short online courses as part of an advertising strategy

Partnerships

we will seek partnerships with compatible entities in order to develop our profile and reach
ensure accessibility to a wide range of partners
deliver the Science for Seminaries to fulfilment our grant
we will work with Asbury Seminary, Kia and Newbigin School of Urban Leadership to develop areas of education that serve the wider needs
we will revive study abroad initiatives

Geographical Reach

we will continue to develop our relationships with the Global South for faculty development
we will continue to strengthen relationships with partners in North America
we will continue to recruit from beyond the UK to all levels of programme
we will serve diaspora communities within the UK

National and International Profile

we will continue to develop our international and national profile in order to develop a pipeline of students
we will invest in development of our alumni networks

Finances

In order to be sustainable we need to have managed growth.
We continue to review how we can enhance pay.
we need to review our financial modelling and fundraising/partnerships, including considering the establishment of a US based foundation for fundraising , which can build upon the recent one off

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

‘Alabaster’ donations which have been received this year

we will continue to work towards a healthy financial culture including careful projections and budgeting and development of security for medium and long-term planning
we note that we have very few significant trust donors and we will revisit any opportunities in this area
we will actively explore other research grants
We will consider whether we need to set up a trading subsidiary

Campus

the primary focus in our campus is the establishment of a campus plan to take us to 2035
planned maintenance and refurbishment of student accommodation
continued letting as space and restrictions permit
we have a cap ex plan in place for regular investment to emerge
the goal of being Carbon Neutral is underway with staged investment in short, medium and long term planning

Governance

we are in the process of reviewing our Constitution and our Governance practices
replenishing and recruiting Governors for the coming cycle including a focus on equality and diversity in our recruitment to Governors
ensure ongoing support for our Governors is offered by the College team
undertake induction and training for all Governors, new and returning
review the strategic direction and reporting mechanisms received by Governors to ensure that they are clear and satisfactory
implementing a plan for a full-strength board of trustees with a matrix of skills and backgrounds in order to provide effective Governance and leadership

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:

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 forward-thinking 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 24 a new strategic plan will be developed to take the college to 2035.

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 cuttingedge 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.

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

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 pre-degreelevel 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:

a) creative and alternative modes of delivery.
b) partnerships with other Wesleyan institutions of Higher Education.
c) course development relating to the needs of academic programming, training for ministry and theological benchmarks in the 21[st] Century.
d) the implementation of strategic planning across all levels of academic life in the College.
e) Active promotion of the College in all areas and the recruitment of students at both undergraduate and postgraduate levels from the UK and globally.
f) The increased geographical plan of places to be in order to develop our profile
g) The appointment of specialists in HE from other Universities to the Academic Board to speak into the College’s developments

The Administrative Council continues to explore:

a) seamless integration of all administrative functions.
b) all departments of the College continue to operate and improve in their efficiency.
c) streamlining processes and procedures.
d) financial sustainability.
e) further development of publicity and recruitment in targeted ways.
f) compliance with the Prevent Government agenda.
g) training and enhancement of our staff team
h) the appointment of external specialists to support the development of our administrative functions
i) accountability for high level operational decisions; reviewing cash flow management and recommends budgets for approval to Governors

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

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

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.

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/s, 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-to-day 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,

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

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.

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.

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.

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

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

insufficient student numbers over a sustained period
changes in Government legislation
changes in validation arrangements of the policies of our partner organisations
the denominational affiliation in the light of declining membership and global shifts in emphasis.

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

is developing a new business plan seeking to diversity our products and services, diversify our income streams to be less reliant on student-based income and manage our expenditure
is investing in a new digital specialist and reviewing our marketing and admissions structures to ensure our profile is raised
ensures that we have good compliance with all Government policy, good relationships with the Office for Students
maintain validation with the University of Manchester
monitors and reviews the historic affiliation with the wider Nazarene denomination and is looking at ways to reflect the reality of our reach beyond the denomination by reviewing our constitution and affiliations. In this way we can ensure we are consistent in our approach as a WesleyanTheological institution set in the UK context.

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

Nazarene Theological College Report of the Board of Governors For the year ended 30[th] June 2024

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:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the Financial Statements;
prepare the Financial Statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.

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 .

Approved by the Board of Governors and signed on its behalf by:

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

30 November 2024

Independent Auditors’ Report (continued)

Opinion

We have audited the financial statements of Nazarene Theological College (the ‘charity’) for the year ended 30 June 2024 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:

give a true and fair view of the state of the charity’s affairs as at 30 June 2024, and of its incoming resources and application of resources, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011.
Where applicable, funds from whatever source administered by the provider for specific purposes have been properly applied to those purposes and managed in accordance with relevant legislation.
Where applicable, funds provided by the OfS, UK Research and Innovation (including Research England), the Education and Skills Funding Agency and the Department for Education have been applied in accordance with the relevant terms and conditions.
The requirements of the OfS’s accounts direction have been met.

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.

Independent Auditors’ Report (continued)

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 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:

the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
sufficient accounting records have not been kept; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 20, 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.

Independent Auditors’ Report (continued)

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 misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

enquiry of management and those charged with governance around actual and potential litigation and claims.
enquiry of the charity's staff, management and those charged with governance to identify any instances of non-compliance with laws and regulations.
reviewing minutes of meetings of those charged with governance.
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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/auditorsresponsibilities . This description forms part of our auditor’s report.

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

Date: 02 December 2024

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

Nazarene Theological College

Statement of Financial Activities

for the year ended 30 June 2024

Unrestricted funds Note £ Income from: Donations and legacies 3 115,018 Charitable activities: 4 1,114,315 5 201,912 Investments 6 7,794 Total income 1,439,039 Expenditure on: Raising funds 7 - Charitable activities: 9 1,542,668 Total expenditure 1,542,668 (103,629) 1,074 11 (102,555) Transfer between funds - Net movement in funds for the year (102,555) Reconciliation of funds Total funds brought forward 2,659,108 Total funds carried forward 2,556,553 Other trading activities Net income/(expenditure) before net gains/(losses) on investments Net income/(expenditure) for the year Realised/unrealised gains/(losses) on investments	Restricted funds £ 195,928 - - 6,264 202,192 - 84,151 84,151 118,041 - 118,041 - 118,041 376,258 494,299	Total funds 2024 £ 310,946 1,114,315 201,912 14,058 1,641,231 - 1,626,819 1,626,819 14,412 1,074 15,486 - 15,486 3,035,366 3,050,852	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*

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

Nazarene Theological College

Balance Sheet

as at 30 June 2024

	Note				2023	2023
		£	£		£	£
Fixed assets
Tangible assets	17		1,983,011			1,918,333
Investments	18		162,476			161,402
Total fixed assets			2,145,487			*2,079,735*
Current assets
Debtors	20	207,932			191,459
Cash at bank and in hand	21	986,415			1,130,022
Total current assets		1,194,347		*1,321,481*
Liabilities
Creditors: amounts falling
due in less than one year	22	(158,751)			(217,868)
Net current assets			1,035,596			*1,103,613*
Total assets less current liabilities			3,181,083			3,183,348
Creditors: amounts falling
due after more than one year	24		(130,231)			(147,982)
Net assets			3,050,852			*3,035,366*
Funds of the charity:
Restricted income funds	25		494,300			376,258
Unrestricted income funds	26		2,556,552			2,659,108
Total charity funds			3,050,852			*3,035,366*
The notes on pages 27 to 49 form part		of these accounts.
Approved by the trustees on 30/ 11/ 2024 and signed on			their behalf	by:

Mr. Ian Burleigh (Chair)

Dr D Brower Latz (Principal)

Nazarene Theological College

Statement of Cash Flows

for the year ending 30 June 2024

Note
2024
£
Cash provided by/(used in) operating activities 30
(33,399)
Cash flows from investing activities:
Dividends, interest, and rents from investments
14,058
Purchase of tangible fixed assets
(108,780)
Cash provided by/(used in) investing activities
(94,722)
Cash flows from financing activities:
Repayment of borrowing
(15,486)
Cash provided by/(used in) financing activities
(15,486)
(143,607)
1,130,022
Cash and cash equivalents at the end of the year
986,415
Cash and cash equivalents at the beginning 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

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024

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.

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (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.

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (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:

Costs of raising funds comprise the costs of raising donations and their associated support costs.
Expenditure on charitable activities includes the costs of activities undertaken to further the purposes of the charity and their associated support costs.
Other expenditure represents those items not falling into any other heading.

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.

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (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:

Land and buildings 1% straight line - Fixtures and fittings 15% reducing balance - Computer equipment 33% reducing balance

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.

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (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 £ 115,018 115,018 Unrestricted £ 126,948 126,948	Restricted £ 195,928 195,928 Restricted £ 238,219 238,219	Total 2024 £ 310,946
			310,946
			Total 2023 £ 365,167
			365,167

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (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 £ 17,822 520,579 454,539 27,375 11 54,102 39,887 1,114,315 Unrestricted £ 18,388 507,190 479,550 22,595 114 42,515 67,678 1,138,030	Restricted £ - - - - - - - - Restricted £ - - - - - - - -	Total 2024 £ 17,822 520,579 454,539 27,375 11 54,102 39,887
			1,114,315
			Total 2023 £ 18,388 507,190 479,550 22,595 114 42,515 67,678
			1,138,030

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (continued)

5 Income from other trading activities

Income from other trading activities
Lettings and commissions Employer' allowance and JRS income Sundry income	2024 £ 201,912 - - 201,912	2023 £ 213,005 - -
		213,005

All income from other trading activities is unrestricted.

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 £ 5,000 2,640 154 7,794 Unrestricted £ 1,517 2,640 131 4,288 2024 £ - -	Restricted £ 6,264 - - 6,264 Restricted £ 1,673 - - 1,673 2023 £ - -	Total 2024 £ 11,264 2,640 154
			14,058
			Total 2023 £ 3,190 2,640 131
			5,961

All expenditure on cost of raising funds is unrestricted.

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (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 £ 279,572 743,502 519,594 1,542,668 Unrestricted funds £ 197,195 589,123 614,499 1,400,817	Restricted funds £ 29,469 54,682 - 84,151 Restricted funds £ 209,697 72,722 - 282,419	Total 2024 £ 309,041 798,184 519,594
			1,626,819
			Total 2023 £ 406,892 661,845 614,499
			1,683,236

In accordance with the Access and Participation Plan, this year the College has spent £28,896 (2023: £18,400) on Access Investment, £2,940 (2023: £5,489) on Financial Support bursaries for students from underrepresented groups, £88,300 (2023: £66,450) on University Fee waivers and £7,956 (2023: £2,265) on hardship funds. In addition, £2,000 (2023: £2,000) has been spent on Research and Evaluation Investment for new courses.

9 Analysis of expenditure on charitable activities by activity type

Current reporting period Facilities Education Governance costs	Activities undertaken directly £ 309,041 798,184 - 1,107,225	Support costs £ 477,048 29,776 12,770 519,594	Total 2024 £ 786,089 827,960 12,770
			1,626,819

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (continued)

*Previous reporting period* Activities undertaken directly £ Facilities 406,892 Education 661,845 - 1,068,737 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 Professional costs and sundries Professional costs and sundries Governance cost	Support costs £ 564,491 25,954 24,054 614,499 Facilities £ 269,526 73,566 9,625 12,770 15,782 35,602 15,801 47,177 9,969 489,818 Facilities £ 366,465 75,716 15,814 24,054 18,659 36,652 14,083 30,669 6,433 588,545	Total 2023 £ 971,383 687,799 25,954 1,685,136 Education £ - - - - - - - - 29,776 29,776 Education £ - - - - - - - - 25,954 25,954	Total 2024 £ 269,526 73,566 9,625 12,770 15,782 35,602 15,801 47,177 39,745
			519,594
			Total 2023 £ 366,465 75,716 15,814 24,054 18,659 36,652 14,083 30,669 32,387
			614,499

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (continued)

11 Net income/(expenditure) for the year

This is stated after charging/(crediting):	2024	2023
	£	£
Depreciation	44,102	30,669
Operating lease rentals:
Equipment	5,614	4,645
Auditor's remuneration - audit fees	6,000	6,360
Auditor's remuneration - accountancy fees	2,160	2,160

Also included within expenditure are bursaries and scholarships of £106,464 (2023: £104,782) of which £54,682 (2023: £76,140) was paid from restricted funds.

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (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	2024 £ 794,310 60,763 21,662 876,735	2023 £ 722,555 53,286 19,027
		794,868

No employee has employee benefits in excess of £60,000 (2023: Nil).

The average number of staff employed during the period was xyz (2023: 49.59). The average full time equivalent number of staff employed during the period was 27.4 (2023: 26.1) and is analysed as follows:

Academic Student support Administration Chaplaincy Housekeeping Library Manchester Wesley Research Centre Maintenance Publicity and recruitment Archivist	2024 No. 9.6 4.4 6.6 0.7 1.0 0.8 1.1 1.5 1.5 0.2 27.4	2023 No. 9.2 4.3 6.6 0.8 1.0 0.8 1.2 1.3 0.7 0.2
		26.1

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (continued)

Key management Personnel

Key management Personnel
Gross Salary Employer Pensions Contribution Employer National Insurance Contribution	2024 £ 43,036 1,291 4,684 49,011	2023 £ 42,434 1,273 4,743
		48,450

This remuneration package is in line with others in the School of Theology sector and is in line 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 (2023: 1.3) 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 1.1 (2023: 1.2) times the median total remuneration of staff, where the median total remuneration is calculated on a full-time equivalent basis for the total remuneration by the provider of its staff.

13 Pensions and other post retirement benefits

The amount recognised in expenditure as an expense in relation to defined contribution plans was £21,662 (2023: £19,027)

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

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (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 (2023: £nil).

One member of the management committee received travel and subsistence expenses during the year of £393 (2023:£380).

Unrestricted donations of £6,756 (2023: £2,080) were received from trustees during the year.

Income of £15,500 (2023: £21,000) was received from the Church of the Nazarene British Isles Southern District, of which Reverend C McCann is also a trustee.

Income of £24,387 (2023: £46,678) 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 (2023: £nil).

15 Government grants

The government grants recognised in the accounts were as follows:

OFS	2024 £ 17,822 17,822	2023 £ 18,388
		18,388

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (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 30 June 2023 At 1 July 2023 At 30 June 2024 At 1 July 2023 At 30 June 2024 At 30 June 2024	Land and buildings £ 2,294,885 32,340 - 2,327,225 417,676 23,272 - 440,948 1,886,277 1,877,209	Fixtures and fittings £ 213,751 60,440 - 274,191 174,058 15,020 - 189,078 85,113 39,693	Equipment £ 30,973 16,000 - 46,973 29,542 5,810 - 35,352 11,621 1,431	£ 2,539,609 108,780 - Total
				2,648,389
				621,276 44,102 -
				665,378
				1,983,011
				1,918,333

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (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	2024 £ 161,402 - - 1,074 162,476 - 162,476 4,142 158,333 162,475	2023 £ 161,043 - - 359
		161,402 -
		161,402
		3,069 158,333
		161,402

Investments are all held at valuation.

Investment properties

The investment property was revalued on 24 June 2022 by Richard N D Smith 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.

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (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 investment property Gains/(losses) on listed investments Gains/(losses) on other investment assets	Unrestricted Funds £ - 1,073 1,073	Total Funds 2024 £ - 1,073 1,073 2024 £ 148,424 59,508 207,932 2024 £ 986,415 986,415	Unrestricted funds £ - 359 359 2023 £ 156,138 35,321 191,459 2023 £ 1,130,022 1,130,022	Total Funds 2023 £ - 359
				359

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (continued)

22 Creditors: amounts falling due within one year

22 Creditors: amounts falling due within one year
Bank loans and overdraft 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	2024 £ 16,696 81,865 39,284 500 20,406 158,751 2024 £ - 500 - 500	2023 £ 14,431 110,753 65,874 23,097 3,713
		217,868
		2023 £ - 15,707 7,390
		23,097

£500 (2023: £23,097) relates to income for an award designated for 2024-2025 finacial year.

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (continued)

24 Creditors: amounts falling after more than one year

Bank loans and overdrafts	2024 £ 130,231 130,231	2023 £ 147,982
		147,982

The Bank loans of £146,927 (2023: £162,413) 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 £1,887,050.

Included within creditors: amounts falling due after more than one year is an amount of £60,283 (2023: £74,587) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.

Mortgage 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

Balance at 1 July 2023 £ 234,585 128,346 13,327 - Total 376,258 Science for seminaries Current reporting period Scottish School of Christian Mission Student Scholarship Fund Development Fund	Income £ 79,567 122,626 - - 202,193	Expenditure £ (54,682) (29,469) - - (84,151)	Transfers £ - - - - -	Balance at 30 June 2024 £ 259,470 221,503 13,327 -
				494,300

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (continued)

Total Student Scholarship Fund Development Fund Scottish School of Christian Mission Science for seminaries *Previous* *reporting period*	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

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.

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (continued)

26 Analysis of movement in unrestricted funds

Previous reporting period General fund Current reporting period General fund	Balance at 1 July 2023 £ 2,659,108 2,659,108 Balance at 1 July 2022 £ 2,577,295 2,577,295	Income £ 1,439,039 1,439,039 Income £ 1,482,271 1,482,271	Expenditure £ (1,542,668) (1,542,668) Expenditure £ (1,400,817) (1,400,817)	Transfers £ - - Transfers £ - -	Gains and losses £ 1,073 1,073 Gains and losses £ 359 359	As at 30 June 2024 £ 2,556,552
						2,556,552
						As at 30 June 2023 £ 2,659,108
						2,659,108

Description, nature and purposes of the fund

Name of General fund Unrestricted funds

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (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 more than one year Total	General fund £ 1,983,011 162,476 541,296 (130,231) 2,556,552 General fund £ 1,918,333 161,402 727,355 (147,982) 2,659,108	Designated funds £ - - - - Designated funds £ - - - - -	Restricted funds £ - 494,300 - 494,300 Restricted funds £ - - 376,258 - 376,258	Total £ 1,983,011 162,476 1,035,596 (130,231)
				3,050,852
				Total £ 1,918,333 161,402 1,103,613 (147,982)
				3,035,366

28 Analysis of changes in net debt

Cash at bank and in hand Debt due within one year Debt due after one year	At 1 Jul 2023 £ 1,130,021 (14,431) (147,982) 967,608	Cash flows £ - - - -	At 30 Jun 2024 £ 1,130,021 (14,431) (147,982)
			967,608

Nazarene Theological College

Notes to the accounts for the year ended 30 June 2024 (continued)

29 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

Less than one year One to five years	2024 2023 £ £ 4,408 5,348 - 4,408 4,408 9,756 Equipment	2024 2023 £ £ 4,408 5,348 - 4,408 4,408 9,756 Equipment
		9,756

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

Net income/(expenditure) for the year Adjustments for: Depreciation charge (Gains)/losses on investments Dividends, interest and rents from investments Repayment of borrowing Decrease/(increase) in debtors Increase/(decrease) in creditors Net cash provided by/(used in) operating	2024 £ 15,486 44,102 (1,074) (14,058) 15,486 (16,473) (76,868) (33,399)	2023 £ 39,286 30,669 (359) (5,961) 15,801 14,963 (75,555)
		18,844

Nazarene Theological College Notes to the accounts for the year ended 30 June 2024 (continued) 31 Prior year Ststement of Financial Artivities (including Income and Expendire account) Unrestrirted funds Restricted funds Total fvnds 2023 Total fvnds 2022 Income from.. Donations and legacies 126,948 238,219 365,167 278,137 Charitèble activities.- 1,138,030 1,138,030 1,013,358 Other trading activitAes 213,005 213,005 205,527 Investrnents 4,288 1,673 5,961 2,834 Total Income 1.481271 239,892 1,722,163 1,499,856 ExpendiTture on.. Raising funds 2,686 Charitable activities.. 1,400.817 282,419 1,683,236 1,441,751 Total expenditu 1.4110 817 282,419 1,683,236 1,444 437 Net income/(expenditure) before net gains/(losses) on investments 81,454 {42,527) 38,927 55,419 Rehll5ed/UnalISed gains/(losses) on investments 359 359 49,713 hTet Income/(expendlture) for the year 81.813 (42,527) 39,286 105,132 Transfer betweerj fvnds Net movement in funds for the year 81,813 (42.527) 39,286 105,132 Re¢onciliTation of funds Total funds brought fonvard 2,577.295 418,785 2,996,080 2,890,948 Total funds carried forward 2,659,108 376 258 3 035,366 2,996 080 The statement of financial artivities includes all gains and losses recognised in the year. All income and expenditure derive from continuing attivities. 49