Charfty rngistration numbar NIC104482 (Northern Ireland) Company registration number N1049168 BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2024 BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) LEGAL AND ADMINISTRATIVE INFORMATION Dlrectors Ms S Graham (Chair) Mr N Jennings MrMHPitt Mrs J Smyth Mrs L Watson MrA Robinson DrA Moorehead Prof P Fleming (Appointed 19 March 2024) (Appointed 9 Febwary 2024) (Appointed 21 January 2025) Prlnclpal Mr J Bumett Charity numbor NIC104482 Company number N1049168 Registèrnd office Glenbum House Glenbum Road South Dunmu BT17 9JP Audltor Harbinson Mulholland 6th Floor East Tower Lanyon Plaza 8 Lanyon Place Belfast Co. Antrim BT13LP Bankers Ulster Bgnk Andersonstown Branch Unit G, Westwood Centre Belfast Co. Antrim BT1198Q Sollcitors Hewitt & Gilpin 8 High Street Holywood BT18 9P1 BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) CONTENTS Page Strategic report Diredor8' report 8-10 Independent auditor's report Statement of financial activities 15 Statement of financlal posrtion 16-17 Statement of cash flows 18 Notes to the financial statements 19-29 BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) STRATEGIC REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The Directors present their Strategic Report for Ihe year ended 31 August 2024. What the College does The School provides education services. The Charlty'3 classlfication Th8 advancement of Education. Who the Charity helps The Charity exists to help the general public but is specifically interested in those who wish to train for growth in Christian life and service, locally and around the wortd. How the charlty works The Charity delivers educational programmes to create a welcoming community in which God works to form His people by integrating spiritual, academic and experiential leaming rooted in His Word, for gr0￿h in Christian life and seniice, locally and around the world. REVIEW OF ACTIVITIES AND FUTURE DEVELOPMENTS There were nel outgoing Tesources for the year of £254,324 attributable to unrestricted reserves which now stand at £870,309. In addition, there was net income before transfers for the year of £31.073 attributable to restricted reser4es which now stand at £99,237. ACHIEVEMENTS AND PERFORMANCE Progress was mad8 toward fulfilling our purpo88 in 2023-2024 in th8 following areas.. Educati The School offers undergraduate and postgraduate courses validated by the University of Cumbria These courses provide a svite of vocational theology award5 (CertHE, DipHE, BA (Hons) Theology, Graduate Dip, MA) validated by the University of Cumbria. Additionally, the School offers a wide range of part time courses in various theological subjects. Advancement i. Recruiting and Enrolment The number of full time equivalent Students attending the School for the various degree courses in the year under review was 83. In Séptember 2023. the School enrolled 36 (2022: 53) undergraduale and O (2022: 0) posigraduate fvll time students as well as 11 (2022: 16) undergraduate part time, 12 (2022= 22) post graduate part time and O (2022.. 0) full time Ph.D. students. Those attending the School were from a wide spectrum of denominations. Students attending the School come mainly from UK and Ireland with a small number coming from countries from around the world. ii. Educational Development During 2023 the School rolled out year 4 of 8 rev81idated UG programme. This newly revalidated degree builds on our knowledge and experience and seeks to better seTve our students with an integrated approach across theological disciplines and practical service. BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) STRATEGIC REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The Sthool also sought to enhance the support we offer to students, on a joined-up approach across academic. pastoral and residential support. Feedback from students has been very positive as to the quality of the support and it has been encouraging to see student5 access t)oth academic support through their Personal Tutor scheme, as well as Pastoral care. This positive feedback has been echoed in the external survey based NSS that paints an encouraging picture of the School. The MA (launched in 2018) continues to attract students from a wide range of professional backgrounds as its blended approach serves their educational and professional needs well. This year our further enhancement of the MA has enabled students to present their dissertation research proposals in an online seminar. Alongside our formal education, th6 School offers short courses, created by the School and accessible to the public at large. This ye8r we continued our suite of programmes under the banner of Catalyst Courses. The accessibility of these classes with some face-t(Fface and some online has worked well and resulted in a greater diversity of partiupants along with a wider net of contributors to the teachlng. iii. Resource Development The level of charitable donations to general operations and Speclfic project8 continu8 to contribute lo support the School needs. The Sthool is dependent on the generosity of 5UPPOrters to ensure the future sustsinability of the School. This is supported through a funding group to help 5UPPOrt application to Trusts and uncover new funding possibilits'es. eralion The School continued its policy of upgrading facilities Ihrough minor capital works and the ongoing maintenance programme on its buildings. During the year £4,006 (2023.. £41,900) was spent in this way. Human Resources The School continues to support staff and volunteers, with ongoing tralnlng for our line managers and supporting staff. Outcomes Assessment The School continues it5 cornmitment to providing Iheological educalion at differing academic levels and for varying study periods depending on the needs of prospective applicants. In the BA {Hons) in Theology from the University of Curnbria 440kn (2023.. 59 % ) of students graduated with a 2..1 or above. BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) STRATEGIC REPORT FOR THE YEAR ENDED 31 AUGUST 2024 FINANCIAL REVIEW The results of the School's activities are contained in the attached financial statemenls. Overall a deficit of £223,251 {2023.' £97,709) is reported for the year ended 31 August 2024. Unrestricted Funds retumed a deficit of £254,324 compared to a deficit of £95,882 in 2023 whilst the corresponding figures for Restricted Funds were a surplus of £31,073 and a deficit of £1,827 respectively. Unrestricted Reserves were £870,309 (2023.. £1,124,633) at year end whilst Restricted Reserves were £99,237 (2023: £68,164). uidi The School decreased its bank balance during the year. Bank balances at y8ar end wer8 £248,873 compared to £448,467 at the end of the previous year. This is sufficient cash re58Tves lo meet the School's funding requlrem8nts for six months wlthout resorting to borri)wing from the company's bankers or generating addltional funds. Income During the year under review, 47.512023: 73.5) full time equivalent students attended the School completing one or more of the variety of courses provided by the school. In the ye8r to August 2024 fee income for such students amounted to almost £271,335 (2023.. £408,409). Almost 280 (2023.. 3981 part-time students attended evening class or day release course5 generating fee income of £30,117 {2023'. £46,179). Donation income and incorne from the use of the School's facilities continue to provide a steady source of revenue. endi ur Expenditure may be broken down between that which is incurred directly on education and that which is incurred on maintaining the School's buildings and infrastructure. Over 850/0 of the educational costs may be analysed as employment costs. Personnel and Property costs are the major areas of expenditure within the indirect or corporate services area. The School has been impacted by the steep rise in energy costs as a result of the current C05t of living crisis. Restricted nd D na Fund The School also receives donation income from churches and individuals for specific projects. These are all recorded separately according to their specified use and are maintained in separate funds as follow8.. Global S onsorshi Fund This Fund is used to support overseas students who are unable to raise Ihe fees to study at the School.. BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) STRATEGIC REPORT FOR THE YEAR ENDED 31 AUGUST 2024 Assistance is also given for travel, accommodation and out of pocket living expenses for such students. Where a student is supported by a church, the studenl is obliged to visit the sponsoring church regularly at weekends to experience pastoral Work in a Northem Ireland church environment. In the year just ended, no (2023: 0> students were supported under this scheme. en Bursa Fund This Fund is used to support students from within the British Isles who would otherwise be unable to meet the costs of study at the School. Such students are assessed by a Board subwcommittee who bring their recommendations to the Board as appropriate. During the year ending 31 St August 2024, with the assistance of a Funder, we were able to provide 3 students with a total of £3,0(J) of assistance. Buildin Fun The School owns all Its buildings and ha8 no loans outstanding on Ils property. Thls Fund is a Designatèd rather than a RestTi¢ted Fund and is set aside for a capital project to Improve facilities. L nd and Buildi The School maintains a designated reserve equivalent to the net book value of its property (land and buildings) to focus attention on the infrastructure of the School and the need to generate sufficient funds to maintain this propety. This reserve is made up of the land and buildings whith are held for the long term and is not readily available to meet the ongoing operating costs of the School. RESERVES POLICY By its nature the School meets expenditure from its income and the majority of unreslricled resepies comprises designated funds. 11 is the Board's policy to work towards a position where General Fund reserves as set out in note 19 are sufficient to meet three months of operating costs which amounts to £178,662 without prejudicing the ongoing activities of the School. The reserves policy is reviewed annually, and unre5tricled General Fund reserves amount to -£76,357 at 31 August 2024. This represents -1.3 months of operating costs of the School. The Board is conlinuing to seek to achieve the reserves target while continuing to deliver the Schoofs objectives by seeking to budget for g srnall surplus each year. The total reseNes of the School for charitable purposes amounts to £969,546 at 31 August 2024 of which 100/0 are restricted, 860/0 are represented by land and buildings and 4VD are available for use, albeit 11 % is designated for future capital projects by ihe Board. Plan For Future Periods The Board is délighted to be bringing forward a new Strategic Plan coupled with unveiling a new name for the Sthool. The Purpose Statement is: "To equip followers of Jesus for missional impact through theological education and spiritual development within a vibrant academic and worshipping community." The Board desires to develop a 'centres' approath for each of the following strategic areas: Centre for Theological Education Centre for Christian Spiritual Theology Centre for Apologetics and Ethics BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) STRATEGIC REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The strategic objectives are.. To strengthen the School's educational provision and continue to improve the quality of the teaching and leaming experience. 2. To enable all of our students to progress in their learning, their personal development and the maturing of their Christian character, and to help them live out their faith as 21 st century disciples. 3. To raise the profile, reach and r8PUtation of the School locally and internationally. 4. To seek to be a prophetic response to contemporary issues facing th8 church and society. In addition to normal operations, other foci were a priority. They induded.. Moving sites, from an out-of-town campus to Stranmillis University Campus within Belfast City's university students, heartl8nd. The move is highly strategic, from a recruitment and academic perspectives. Increasing the School'8 profile through a series of strategic cours8s as well as online inputs and Church engagements. In June 2026, BST shall hosl an inlemational conference on acAdemictheology. Increasing the overall long-temi financial sustainability of the School through developing a new business and operational model as the School relocates to its new site, Revenue from the sale of the old site will ensure the long-temi sustainability of the School. Commencing the construction of E-leaming facilities through a bespoke E-learning centr8. Expanding th8 School's postgraduation learning platform, including additional courses and an online E- learning Masterfs degree programme in Practical Theology. Global student scholarships launch online MA. Working towards student affiliation with CU (Ireland). Regulatory and key performanco indicators This year the School received the endorsement from QAA as the School continues to maintsin acadernic Standards and enhance the quality of student learning opportunities. Approved by th• Bo•rd and slgned on it8 b•half by M8 S Grah•m (Chalr) Director Dalod.. 30 May 2025 BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) DIRECTORS. REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The Directors present their report and finanGial statements for the year ended 31 August 2024. The Directors have adopted the provisions of the Statement of Recommended Practice {SORP) Accounting and reporting by Charities (FRS102) in preparing the Annual Report and financial statemenls of the Company. STATEMENT OF DIRECTORS, RESPONSIBILITIES The Diredors, who also act as Trustees, are responsible for preparing the Annual Report and financial statements in accordance with applicable law and regulation. Company law requires the dirèctors to prepare financial slatements for 88ch financial year. Under that law, the directors have prepared the financial statements in accordance with United Kingdom Accounting Standards comprising FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland, and applicable law (United Kingdom Generally Accepted Accounting Practice). Under company law Ihe directors must not approve the ffinancial slatements unle8S they are satisfied that they give a true and fair view of the state of the affairs of the company 8nd of the incoming resources 8nd application of resources, including the income and expendilure account, of the company for that year. In preparing these financlal statements the Dlractors are required to.. select suitable accounting policJes and then apply them consistently., observe the methods and principles in the Slatèment of Recommended Practice (FRS102): Accounting and Reporting by Charities (2015); make judgements and estimates that are Teasonabl8 and prudent- prepare the financial statements on the going concem basis unles8 it is inappropriate to presume that the company will continue in business- and stste whether applicable UK Accounling Standards have been followed, subject to any material departures disdosed and explained in the financial statements. The Directors are responsible for maintaining proper accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time, the financial position of the company and enable them to ensure that the financial Statements comply with the Companie8 Act 2006. They are also responsible for safeguarding the assets of the company and hence for taklng reasonable steps for the preventlon and detection of fraud and other irregularities. STRUCTURE, GOVERNANCE AND MANAGEMENT Belfast School of Theology Limited is a Company limited by guaranlee not having a share capital and is incorporated under the Companies Act 2006. The Company is govemed by its memorandum and artides of association. The School is formally recognised by HM Revenue and Customs as a charitable body under referen￿ XN47242, and is registered with the Charity Commission for Northern Ireland NIC104482. The statutory reliefs under s505 of the Income and Corporation Taxes Ad 1988 are admissible on income subject to compliance with the terms of s505 of the Ad. Board of Dlrectors The Board of Directors is responsible for the review of all activities, approval of budgets and implementstion of future strategy. The Board meets five times per annum. There are three Board sub-committees namely Education Committee, Human Resources Committee and Finance, Audit and Risk Committee., the latter two sub- cornmittees have met on a regular basis and report to the Board of Directors with the Education Committee having been in ternporary abeyance for the period of this report. due to operational reasons. The Senior Management Team is made up of three staff under the leadership of the Principal and is responsible for all operational and day to day matters. It recommends key dectsions to the Board for approval and will also provide inforrnation and recommendations to the Board sub-committees for wnsideration and approval in the relevant operational areas. This Group meets monthly. BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) DIRECTORS. REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The Directors who served during the year and up to the date of signature of the flnanaal slatements, unless othe￿ise noted, were: Dr N C Morrow (resigned 13 September 2024) Ms S Graham Mr P S Hendron (resigned 18 June 2024) Mr N Jennings MrMHPitt Mrs J Smyth Mrs L Watson Prof P Fleming (resigned 5 September 2023, reappointed 21 January 2025) Dr A Moorehead (appointed 9 February 2024) MrA Robinson (appointed 19 March 2024) Appointm•nt of Directors Those sepling as Directors are invited by the existing Board of Directors on the ground of their proven ability, relevant experience, and person81 interest in the work of the School. Prfor to joining the Board e8ch prospective member meet5 wlth the Chairman. The meeting provides an overview of the School and the role and responsibilities of each member of the Board. An induction process for new Board members has been developed and is used lo ensure they are familiar wilh the objectives, activities, public benefit and risks facing the School. A Director5 Pack for the School is given to 88ch new mernber when they join and ongoing training is provided as required. Each member of the Company is also appointed as a Director, serve5 for a sp8cific term, retire8 by rotalion, and upon rets'rement is eligible for re-appointment. As the School receives only limited financial assistance from public funds, relying upon fees charged to students and upon gifts received from Supporters, there are no Directors nominated by any public body or outside agency. None of the Directors hes any beneficial interest in the company. All of the Directors are members of the company and guarantee to contribute £10 each in the event of a winding up. The School employs a Princlpal and other full time and part lime teaching staff, and the day-to-day oper8tion of the School as a place of Christian education is delegated to the Principal and his staff. However, the Board of Directors is ultimately responsible for the activities of the School and are governed by the doctrinal statemenl set out in paragraph 3 of the Articles of Association as well as the original objects expressed in the Declaration of Trust of 81ty Februgry 2003. The School is an independent body and has no constitutional connection with any other School or education establishment. The professional advisors to the School are set out on the first page of the Annual Report. During the year the School undertook an organisational review with external assistance with a view to ensuring the School remains fit for purpose to deliver its charitable objectives and secure its financial future in the post- pandemic academic environment. The outcome of this review is being worked Ihrough with staff and the transformation process will lake a couple of years to fully implement, particularly changes to academic courses in consultation with our accrediting universily. This is an exciting opportunity for the School to meet our stakeholders, needs in an innovative and relevant way in accordance with God's will. BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) DIRECTORS. REPORT FOR THE YEAR ENDED 31 AUGUST 2024 OWECTIVES AND ACTIVITIES The purpose of the School is: To equip 21 st ￿ntury foll0v￿rS of Jesus through theologlcal education that fosters the ability to communicate the Christian faith intelligently and with convictson in word and action. The main activity of the School continued to be in the area of delivering educational programmes in keeping wlth that purp06e. Throughout this year, we successfully continued to provide courses leadin9 to: Internal 3 month, 1 year Certificate. Individual modules, 1 year Certificate, 2 year Diploma, 3 year BA In Theology, and Grad Dip (University of Cumbria [UOCI validated courses). Postgraduate 2 year Part Time MA in Theology (University of Cumbria [UOC] validated course). EMPLOYEES All departments within the School have regular stsff rneetings whereby infomiation is disseminated to and obtained from staff by senior managernent. There are regular meetings to facilitate the exchange of this information and also on the agenda for discussion at these meetings is the current statistical, quality and budgetary information ft)r the School. RISK MANAGEMENT Risk management is considered by the Board annually but operational oversight rests with the Board's Finance, Audit and Risk Committee who consider risk at each meeting. The School has developed a School Strategic Risk Register supported by a Subsidiary Register of more minor risks and the risk managemenl process will continue to develop in the incoming year. The Board has considered the financial and operational risks associated wyth running the School and considers that it has in place the procedures to manage any such ongoing risks. The following is a summary of the key activities in place to mitigate exposure to Tisk.. ongolng review of the Strategic Plan and analysis of th8 market for Students who wish to obiain formal bible based training and accredilation: monitoring of financial information on a monthly basis wlth adequate plannlng and financial controls in place.. an established Education Committee togéther with robust r8POrting and Inde￿ndant quality revlaw procedures through our accrediting sponsors; extensive range of policies Bnd procedures to cover all aspects of the School's activities,. organisational structure which includes provision for deputies to cover key roles and an effectiv8 succession planning prO￿s$', robust governance controls With suffiryent management and reporting Structures in place: and frequent assessment of Tisk to ensure all possible consequences are considered and controls implemented. BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) DIRECTORS. REPORT FOR THE YEAR ENDED 31 AUGUST 2024 The key risks facing the School are sel out in the Corporate Risk Register. but the focus of attention surrounds the following risks.. Maintenance of a high standard of educational quality and excellence to support academic achievement and Christian service development among the student population. Sustainability of funding to support all School activty. Maintenance of an appropriate physical environment for both staff and students. These risks are managed and mitigated through various management operated policies and procedures and are normally overseén by specific Board Committees in these key areas- Education Committee, Finance, Audit and Risk Committee and Human Resources Committee. These standing committees are supplemented by ad hoc committees as and when required to oversee other risks 8nd opportunities as they arise. The Finance, Audit and Risk Committee also looks at emerging risks such as the General Data Protection Regulation to ensure the School is aware of the impact and is planning to mitigale the risk if and when it arises, PUBLIC BENEFIT The Board believes that the public benefits from its actlvities in the areas of the advancement of religion and the advancement of education through.. The training of full and part time ministers of religion, lay associates and pastoral ministry workers Spiritual formation of laity Teaching and spreading the principles of the Christian religion Raising awareness and understanding of Christian beliefs and practices The carrying out of missionary and outreach work iv. The areas in which the School seeks lo achieve thls are:. Through school and higher education 11. Community education iii. Rellgious education iv. Vocational training and life-long learning v. The development of individual capabilities, competencies, skills and understanding The key beneficiaries are the students who have the opportunity to attend full or part time courses provided by the School. In addition, the public at large may attend public lectures and part time School-run courses. The Directors confirm they have had regard to the statutory guidance in respect of the Public Benefft Requirement published by the Charity Commission for Northem Ireland. FUNDS HELD AS CUSTODIAN TRUSTEE ON BEHALF OF OTHERS The charity does not hold any funds as custodian for any other trustee body. BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) DIRECTORS. REPORT FOR THE YEAR ENDED 31 AUGUST 2024 DISCLOSURES OF INFORMATION TO AUDITORS To the knowledge and belief of the Directors, the Directors confimi that there is no relevant information that the company's auditors are not aware of. They further confirm that they have taken all the steps necessary to ensure the Directors arè aware of any such relevant infomiation, and to estsblish that the company's auditors are avmre of such infomlation. AUDITORS Harbinson Mulholland hgve indicated their willingne55 to continue In office and a resolutlon conceming thelr r8- appointment will be proposed at the Annual General Meeting. Approved by th• Board and slgned on Its behalf by M8 S Graham (Chalr) Director Dated.. 30 May 2025 MrMHPItt Director 10- BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) INDEPENDENT AUDITOR'S REPORT TO THE DIRECTORS OF BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) Opinlon We have audited the financial stat8menls of Belfast School of Theology Limited (Formedy Belfast Bible College Limited) (the 'Company') for the year ended 31 August 2024 which comprise the statement of financial activities, the statement of financtal position, the statement of cash flows and notes to the finanGial statements, including significant accounting polieies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, induding Financial Reporting Standard 102 The Finanu81 Repothng Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial 5tatements'. give a true and fair view of the state of the charitsblè company's affairs as at 31 August 2024 and of its incoming resources and application of reSoUr￿s, for the year then ended., have been properly preparèd in accordance with United Kingdom Generally Accepted Accounllng Practice: and have been prepared in accordan¢8 with the requlrem8nt8 of the Companies Acl 2006. B•81s for opinion We conducted our audit in accordancè wrth Intematlonal Standard8 on Auditing (UK) IISAS (UK>) and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities ft)r the audil ol the financi81 stalements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Slandard, and we have fulfilled our other ethical responsibilities in accordance with the8e requirements. We believe that the audit evidence we have obtainèd is sufficient and appropriate to Provide a basis for our opinion. Concluslon8 relating to going concern In auditing the financial statements, w8 have conduded that the Directors, uge of the golng concem basis of accounting in the preparation of the finan￿al statements 18 appropriate. Based on the work we have performed, we have not identified any material uncertainties relaling to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the r88ponsibilities of the Directors wlth respect to golng concern a￿ described In the relevant sections of this report. Other inforniation The other information comprises the information included in the annual report other than the financial statements and our auditorfs report thereon. The Directors are responsible for the other information contained within the annual report. Our opinion on th8 financial slatements does not cover thè other infomiation and we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistant with the financial statements or our knowledge obtained in the course of the audit, or otherwise appeals to be materially misstaled. If we identify such material inconsistencies or apparent material misstatements, we are required to detemiine whether this gives rise to a malerial misstslement in Éhe financial statements themselves. If, based on the work we have perform&d, we conclude that there is material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 11 BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) Matters on which we arè rnquired to report by exceptlon We have nothing to report in respect of the following matter5 in relation to which the Charilies (Accounts and Reports) Regulats'ons 21x18 and the Charities Accounls and Reports Regulations (Northem Ireland) 2015 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 Directors, report. or sufficient accountlng records have not beèn kept,. or the financial ststernents are not In agreement with the accounting records,. or we have not received all the Information and explanations we requlre for our audit. R•spon8lbllitie8 of Dlrectors As explained more fully in the statement of Directors, responslblliti88, the Directors are re8ponslble for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as th8 Directors determine is necessary to enable the preparation of financial ststements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concem, disclosing, as applicable, matters related to going concem and using the going concem basis of accounting unles5 the Director5 either intend to liquid8te Ihe charitable company or to cease operations. or have no realislic alternative bLrt to do so. Audltorfs rnspon8ibllltles for the audit of the financlal Statements We have been appointed as auditor under section 144 of the Chanties Act 21)J8 and report in accordance with the Act and relevant regulations mgde or having effecl thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud OT érror, and to issue an auditor's Teport that includes our opinion. Reasonable assurance is 8 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 thèse financial statement8. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We deslgn procedures In Ilne wilh our responsibilities, outlined above. to detect material misstatements in respect of irregularities, induding fraud. The extent to which our procedures are capable of detecting irregularilies, including fraud, is detailed below 12- BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE DIRECTORS OF BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) Our approach to identifying and assessing the risks of material misstatement in respect of i￿egUlar1ties, including fraud and non-compliance with laws and regulations, was as follows.. the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise nonwcompliance with applicable laws and regulations- we identified the laws and régulations applicable to the company through discussions with directors andlor 8enior management, and frorn our cofflmercial knowledge and experience of the Sector., We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting18gal correspondènce; and identified laws and regulations were communicated within Ihe audit team regularly and the team remained alert to instsnces of non-compli8nc8 throughout the audit. Wa assessed the su$c8oibility of the company's financlal statements to material misst8tem8nt, including obtaining an understanding of how fraud might occur, by: making enqulries of management 8S to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and considering the internal controls in place to mitigate risks of fraud 8nd norKompliance with laws and regulations; To address the risk of fraud through management bias and override of controls, we= perfomied 8nalyiical procedures to identity any unusual or unexpected relationship8,' tested joumal entries to identify unusual transactions; assessed whether judgemenls and assumptions made in detemiining the accounting estlmat8s set out In Note 2 were indicative of potential bias.. and investigated the rationale behind significant or unusual transa¢tlons', In response to the risk of irregularities and non 1,124,633 458,870 (714,623) 1.429 870,309 The unrestricted funds represent the free funds of the Charity and compri8e general funds and funds which have been designated for particular purposes. General Funds - General Funds are available reserves for use in the fvture work of the School and to minimise working capital borrowing, the need for which arises from time to time, and to cover the deficit of activities in any year arising from short temi financial pressures. Capital Project - The Board have designated income received frorn bequests in 2014 for a capital project to improve studenl facilities. Such funds are not restricted in nature. Land and Buildings - The net book value of land and buildings are held as designated funds as they represent reser4es which are not readily available for use in the operation of the School and are represented by College property. The Iransfer represents the depreciation charge for the year borne by the General Fund and funds used to improve the School land and buildings. 20 Analysls of net ••••ts between funds Unrn•trlctod Restricted 2024 2024 Total 2024 Total 2023 Fund balances at 31 August 2024 are represented by.. Tangible assets Investments Current assetsl(liabililies) 868,947 14,733 (13,371) 868,947 14,733 85,866 905,470 13,301 274,026 99,237 870,309 99,237 969,546 1.192,797 21 Related party transactions There were no disclosable related party transactions during the year (2023.. none). -28- BELFAST SCHOOL OF THEOLOGY LIMITED (FORMERLY BELFAST BIBLE COLLEGE LIMITED) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2024 22 Liablllty of members The Company is limited by guarantee and therefore th8r8 is no share capital. As at 31 August 2024 th8 Company had eight members {2023'. eight). The liability of the members is limited to £10 88ch in the event of the company being wound up. 23 Cash generatsd from operation8 2024 2023 Deficit for the year (223,251) {97,709) Adjustments for.. Investment income recognised in statement of financial activilies Fair value gains and losses on investments Depreciation and impaimient of tangible fixed assets (5,260) (1,429) 40,528 (4,48n 728 40,183 Movements in working capltsl: Decrea8e In debtors (Decrease) In creditor8 1,362 (12,798) 5,625 (15,026) Cash absorbed by operatlon8 (200,848) (70,6881 -29-