ROCHESTER BRIDGE TRUST ROCHESTER BRIDGE TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Registered Charity No. 207100
ROCHESTER BRIDGE TRUST REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 CONTENTS Page Reference and administrative details Annual report 2-15 Independent auditors, report 16-18 Statement of financial activities 19 Balance Sheet 20 Statement of cashflows 21 Notes to the financbal statements 22-38
ROCHESTER BRIDGE TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 REFERENCE AND ADMINISTRATIVE DETAXLS Charity Name The Wardens and Assistants of Rochester Bridge in the County of Kent also known as the Rochester Brldge Trust Registered charity number 207100 Principal Address Bridge Chamber 5 Esplanade, Rochester Kent, MEI IQE Administrative Office st Andw'S House The Precinct, Rochester Kent, MEI ISU Court Members Matthew Aidan Craig Balfour, Esq. Derek George Butler, Esq. Nominated (Kent County Council) Nominated {Maidstone Borough Council} Appointed Member Appointed Member Nominated (Medway Council) Appointed Member Nominated Imedway Council) Nominated (Kent County Council) Nominated (Medway Council) Appointed Member Appointed Member Appointed Member Appointed Mernber Appointed Member Russell Graham Cooper, Eso. FRICS ** John Farmer, Esq. Philip Filmer, Esq. Paul Edward James Harriott, Esq. Raymond Peter Harris, Esq. Mrs Sarah Virginia Hohler Alan Leslie Jarrett, Esq. Lars Lemonius, Esq. Dr Anne Frances Helen Logan Dr Helen Pascoe*** Russell John Race, Esq. JP, DL Richard George Thomby, Esq. MRICS
Junior Warden to 31 May 2023. Senior Warden from l June 2023 Junior Warden from l June 2023 Court member from l June 2023 Senior Warden to 31 May 2023 * Court member to 31 May 2023
Senior officers Sue Threader BEng HonDSc CEng FICE Paula Puxty BA (Honsl FCA Tim Cathcart E+Sc (Hons) MRICS Bridge Clerk (Chief Executive) Chief Finance Officer Chief Estates Officer Principal Professional Advisors Auditor - Saffery LLP Banker - Lloyds Bank plc Insurance Broker - Towergate Insurance Ltd Financial Investment Manager - Rathbones Investment Management Ltd Property Surveyors - Countrywide Residential Lettings Ltd- Savills plc- Bidwells LLP Solicitors, Panel Cripps Pemberton Greenish LLP; H3 Solicitors Ltd- HCR Hewitsolls LLP,. Irwin Mitchell LLP,. Roythornes Ltd
ROCHESTER BRIDGE TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Court of Wardens and Assistants of Rochester Bridge In the County of Kent presents its Annual Fieport and Financial Statements of the Trust for the year ended 31 March 20241 prepared in accordance with the Charities Act 2011 and the Financial Fieporting Stsndard 102. The Rochester Bridge Trust was founded Sn 1399 to provlde and maintain a bridge across the River Medway in Rochester in perpetuity. Benefartors gave land and money in trust to be used for this purpose. The Trust's mission is to provide a safe and well-maintsined crosslng of the River Medway at Rochester Bridge in perpetuity in an efficlent way and apply any surplus funds to support educatlon and other charitable projects. The Twst's Values are integral to all its activities and how it carries out its work. They are.. Leadership. Independence, the Long-term View and Environmental Responsibility. OBJEcfIvES AND ACTIVITIES The fom)al charitable objetts of the Rochester Bridge Tnjst are, in order of priority: l. The maintenance and improvement of the bridges {known as Rochester Bridge) and the approache5 thereto belonging to the Trust and of the banks and channel of the River Medway so far as the conditions thereof may affect the maintenance of Rochester Bridge. The promotion of the following purposes connerted with the Rlver Medway by means of contributions to.. (al the execution and maintenance of works {including the approaches thereto, whether or not belonging to the Trust) tending to facilitate passage over, under or across the Fiiver Medway. andlor Ib) the execution of works for the maintenance of the banks arsd channels of the River Medway so far as the condition thereof may affect passage over, under or across the River Medway. 3. The promotion of such other charitable purposes as may from tlme to time be determined in the United Kingdom and primarily in the County of Kent. Under its third objert, the Trust supports a range of charitable activities, including dellvery of education projects, research and grants. Summa of Main Activities Rochester Bridge The Trust maintains its three bridges (the Old Bridge, New Bridge and Service Bridge) tD a high standard to extend their useful life with the best achievable level of service and cleanliness, balancing the needs of bridge users of all types. The bridges were refurbished in 2019-20. To deliver the primary charitable objert, the bridges are kept open to all types Df traffic at all times except in an emergency. Maintenance work to the carriageway is done under lane closures at night. Maintenance staff are on site seven days per week. All maintenance is carried out with greenhouse gas emissions as low as practicable. Maintenance activities have been undertaken with Net Zero Carbon emissions since l April 2022. Education Under the third objert, civil engineering and agricultural education for young people is delivered through scholarships and bursariesi grant5, free resources, events and other activities. Grants & Other Charitable Projects Grants are made to established organisations for charitable projetts for publlc benefit, and other projerts are delivered directly by the staff.
ROCHESTER BRIDGE TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Grants Policies, which were reviewed as part of the 2023-29 Strategic Plan development process, focus on activities which reflect the Trust's own history, values and work and Set out the charitable purposes which will be considered for funding. These include education and research in civil engineering, mathematics, art and furniture conservation, local history and agriculture. heritage Structure restoration. traditional skills in the bullt environment and agriculture. and activities which improve the environment and posltive use of the River Medway. Exhibitions and lertures a organised to disseminate information about Rochester Bridge and the work and history of the Trust. Regular Open Days take place at the 8ridge Chapel and Chamber. Access to the archives is available to the public by appointment. Operations The Bridge Chapel and Chamber are used as the meeting place of the Court, the home of the main archive collettions and for events and exhibitions. The main administrative office is currently at St Andrew's House, leased from Rochester Cathedral, with a Secondary office at l Gundulph House. External Communicatioris and Local Engagement News and Information about the Trust is published on its websites as well a5 In local, lifestyle and national news publications. Positive coverage in the local media contributes particularly to the education objects and raises the charity's profile in an open and transparent way. The Trust engages on social media, primarily Twitter and Facebook, to gather infomiation and disseminate news and facts about the charity. Income Generation The financial investment portfolio, held primarily in equities, is managed by Rathbone5 Investment Management Ltd, with a small amount being direttly managed by the Trust. The investment property portfolio includes a range Df land and buildings owned and managed for the generation of funds to deliver the Trust's charitable purposes. Dirert property holdlngs are located in Kent, Medway, West Sussex, Suffolk, Cambridgeshire, Lincolnshire and West Yorkshire. The portfolio includes industrial. retail, residential, commercial property and over 6,800 acres of agricultural holdbngs. Carbon Reduction A Carbon Reduction Plan was introduced in 2021. Bridge Maintenance (Scopes 1-31 has been Net Zero Carbon since April 2022 and in-house activities (Scope 11 have been Net Zero since l April 2023. Professional advisor and supplier travel are Carbon Neutral from l April 2024. Significant weight is given to the opportunities to reduce carbon footprints in the procurement of goods, works and Servi5. Pu statem nt The Court has considered the guidance on public benefit published by the Charity Commission and is satisfied that Its work, primarily to provide facilities for the general public to cross the River Medway with all the secondary benefits that thi5 freedom of movement enables, clearly meets the'public benefit test" of the Charities Att 2011. In addition, further public benefit is delivered through grants, education, free lectures and exhibitions, and other charitable projerts. ACHIEVEMENTS & PERFORMANCE Rochester Brldge The main objective is to ensure that the bridges remain serviceable for the longest possible time, v¥hile ensuring maximum availability of the crossings for all users and giving attention to the appearance and cleanliness of the struttures. The last 12 months have been focused on feasibility and design for future projects, and seeking to improve maintenance of the third-party infrastructure carried by the bridges. Continued attention has been given to malntaining the Net Zero Carbon status of bridge management and reducing carbon emissions further. The road brfdges cary over 12 million vehicle trips every year, almost one mllllon pedestrtan Joumeys and approximately 200,000 cycling trips.
ROCHESTER BRfDGE TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 Attivity during the year has included.. taking on the management of the land between the New Bridge and the Railway Bridge from Medway Council and making improvements to the appearance and security of these areas,. further development of designs for remedial works to the Island Pier of the Old Bridge and Sts access gantry and a solution for material loss from the Rochester Service Well,. maintenance of third-party apparatus on the SeNice Bridge and surface water drainage; installation of new steps for better access to the Rochester New Bridge box glrder gallery. installation of further electric vehicle and plant charging points. starting a feasibility study to explore options and costs to strengthen the New Bridge downstream footway cantilever and add additional capacity for active travel modes,. installation of additional ccrv for Surveillance of the Rochester end of the brldges. cornpletion of load assessments for various structures. tendering of a new 5ix-year contract for Bridge Inspections- benchmarking of contract rates and approval to a new six-year Temi Maintenance Contract with FM Conway with an improved specification ftscussed on low carbon operations; removal of a redundant gas pipe and associated asbestos from the Strood Abutment Chamber; and initial investigations and risk assessment for the Rochester Esplanade Georgian parapet. Focus has continued on making SU the brldges a always available for Ljsers to cross the River Medway, In1Sne with the Trust's primary purpose. Maintenance work is carried out at night under single lane restrictlons and applications for third-party closures are strongly resisted. The Tnjst did not impose fijll closure of either road bridge in 2023124. Systems to control the use of the bridges by abnormal loads are in place. Engaging the public about the Trust's work on the bridges has continued with gUlar soclal medla posts and newly introduced engineer-led "Behind the Scenes" tours proving very popular. A number of work experience placements were delivered to young people with an interest in engineering and other aspect5 of the Trusys work. Education The Education Team has engaged with an audience of almost 8,000 during the year. For the fourth year, the Trust sponsored and provided activities as part of the Lj'ving Land event for schools at Detling Showground, organised by the Kent Agricultural Society. To encourage farnilies to learn more about bridges, the adventure golf course and educational activities were ofFered at the Kent County Show in July, which attrarted over 2,000 participants. An updated and expanded verslon of the Trust's fe resources for prlmary schools, Learning about Bridges, was published and distributed to schools and bridge engineering professionals. A new education activity wa5 launched in association with FM Conway comprising a large-scale model of a cable-stayed bridge which can be construrted by teams of young people. The Lets Build a Bridgel project has engaged 200 young people so far, with plans to extend the reach in the coming years. Three Rochester Bridge Trust Arkwright Engineering Scholars continued to be sUPPOrted in their second year and enjoyed a very engaging -Behind the Scenes- visit to Tower 8r4dge. The alumni group of former engineering scholars continue to be engaged, attending events with current scholars. Two new Rochester Bridge Trust Harriott and Telford Engineering Scholarship Schemes were launched, aimed at local SlKth-form students from non-selertive and selective schools respectively who plan to study for university or degree-level apprenticeships in engineering. Three scholarships were awarded and the schemes will be widely promoted for 2025. Two Rochester Bridge Trust Spence Agricultural Scholars continued their studies at the University of Nottingham, with one due to graduate in Summer 2024 and the other In Summer 2025. In the year to 31 March 2024, a total of £7,950 was pald In scholarships (2023: £7,950). The first biennial Phil Tindall Memorial Award, in association with the Worshipfijl Company of Engineers, was awarded for excellence in the mentoring of early career civil enginee. A lerture was organised by the prize-winner to share his expertise with other local engineering organisations.
ROCHESTER BRIDGE TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 A number of small equipment and travel grants were awarded, enabling schools and youth groups to purchase materials to explore bridge building or to bring groups to events and exhibitions organised by the Trust. Grants & other CharNtable Projects A new £1 Milllon Fund was made available during the year for distribution under the thlrd charitable object. In addltbon, over £160,000 was allocated from normal budgets to various grants. The £1 Million Fund has been allocated under various themes as follow5. Some of this funding will be distributed as grants under the Grants Policy, with other projects being delivered direttly over several years. Advancement of education and research in engineeringi maths & agricultu. Includes bridge engineering research and education projects with the Universities of Sheffield and Kin9Ston. Promotion of traditional skills Promotion of health, equality and diversity in agriculture and engineering River Medway - environmental protection, attive use, saving of lives Promotion of carbon sequestration. Restoration of historic structures. Includes projects to stOre historic lantems in Rochester Esplanade Gardens, a lychgate at St Nicholas, Church in Thanington near Canterbury. Estates community development- and Legal advice, administration and new software. an additional £33,000 has been allocated to these purposes from the separate River Medway Fund. Work has continued on the project with the Medway Aircraft Preservation Society to restore a Shorts Scion Floatplane so that it can be placed on public display in Rochester Cathedral in Summer 2025 and then at Rochester Airport. The Shorts fattory played an important part in the industrial history of the River Medway yet there is no example of the aircraft on display locally. Nearly 3,000 people visited the Bridge Chapel and Chamber in 2023124 to view two exhibitions.. Uncovering the Past - Archaeological Findings at Rochester Bridge and Rochester Bridge in Times of Conflict, ès well as associated lectures and Heritsge Open Days. These events also give public access to the art and furniture collections. The archive catalogue is now available online at www.rbt.org.uk/archives Operations The long-temi objective is to consolldate the Trust's office operations in a single location by redeveloping two buildings owned by the Trust on the Esplanade and Gundulph Square, Rochester. Feasibility studies and concept design work were completed in the year and a planning application and Listed Building application made. A detemiination is awaited. A full review of the staff establishment was completed, resulting in the creation of sorne new posts including the Director of Charitable ProjeLts, and recruitment to some longer-term vacancies including the position of Records Manager. Carbon Reduction Plèn The Carbon Reduction Plan sets out the objertives and targets to minimise the carbon footprint of all activities to the lovvest practical level, and offset the small amount of remaining carbon through the planting of te5 and other sequestration activities on land controlled by the Trust. The Trust planted a new mixed native species woodland of 8,000 teS on 13 acres of land named Wardens. Wood near Detling in Kent. Carbon emissions from the Trust's activities are first reduced to the lowest practical level and then are offset by the allocation of an appropriate number of trees to sequester this carbon over their assumed 50-year lifetime. Rochester Bridge is believed to be the only bridge in the world which is managed and maintained wlth Net Zero Carbon emissions. Bridge management (Scope 1-3) has been Net Zero since l April 2022, with total dctionS in ernissions of around 80Vo compared to the baseline year12018119)- The remaining emissions are offset by the allocation of trees in the Trust's sequestration plantation in Wardens. Wood (Detling).
ROCHESTER BRIDGE TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 To offset the 2023/24 bridge management emissions, 82 trees have been allocated, making operations Net Zero Carbon ryn agaln. The significant reduction in emlsslons has been achieved acmss all maintenance operations. Use of dlesel for maintenance has been almost eliminated by changing to elertric plant and boats and, where this is not yet possible, use of HVO fuel. All electricity for bridge lighting and systems, and for charging vehicles and equipment, is procured from renewable Sources. The carbon footprint of alternative options is given considerable weight in the option a55essment and procurement process. The Bridge Clerk continues to be very active in disseminating the Trust's methodology and achievements in Carbon Reduttion to other bridge owning organisations in partiCLJlar. The Trust won a national award for its achievement in reducing the carbon emissions in bridge management at the Bridges 2023 Awards and is recognised by the national Net Zero Bridges Group and Bridge Owners Forum for its leadership in this area. In-house activities (Scope 1-31 achieved Net Zero Carbon from l April 2023. The total carbon footprint of these activities was estimated as 24 tC02e and 119 te5 have been allocated in Wardens, Woo (Detling) to sequester the emissions, making in-house operations Net Zero Carbon. Work has been carried out to reduce the carbon footprint of the energy used in the Trust's own premises. All elettricity is procured from renewable sources, reduclng the footprint significantly. The gas supply was removed from the Bridge Chapel and Chamber as part of a refurbishment in 2021 and heating is provided vla an alr source heat pump. The main office, St Andrew's House, is occupied under a short lease and the work needed to change the existing gas-powered central heating within the short term remaining would be disproportionate to the benefits. The use of energy has been reduced by draught-prooffing windows and doors, Improving thermostatic control and lowering temperatures, Installing thermal blinds and use of timer plugs and motion activated lighting. By 2026, the office activities will be relocated to refurbished premises on the Esplanade and plans are in-hand for heating by a combination of air source heat pumps and solar panels, which should redu the Scope 2 footprint significantly and make it prartical to achieve Net Zero Carbon status. Overview At the end of the first year of the 2023-29 Strategic Plan period, the Court was pleased to have completed seven (16010) of its Strategic Objectives, with artivity undernay on a further 23 152D/o}. There are no significant delays in delivering the plan of works, Other than in achieving planning permission for the Trust's new office premises. The archive collection has not yet been returned to the Bridge Chamber strongroom because of continuing issues with the performance of the heating and environmental control systems. Positive factors which have affected the Trust's achievements thls year include the continuation of stable membership of the Court of Wardens and Assistants, and the commitment of highly motivated an(J capable staff. There is a positive relationship between the Court and the senior staff. undetandIng of bridge performance and behaviour is continuing to improve, wlth additional inspection and survey data being collected. Progress wlll continue into next year with the appointment of a longer- temi bridge inspection consultant. Income Is stable and inereasingi Wlth the prospert of further property land sales and development receipts which will allow additional funds to be distributed for public benefit in the next few years. Reorganisation of property management and the increase in internal resources are already delivering good improvements in the quality of the management of the estate. Market research was carried out to establish the extent of public awareness of the Trust's work. The results showed that the Trust's reputstion is very good locally amongst those who are aware of its responsibility for managing the bridges and or other Charitsble work. However, a large proportlon of the public is not aware that the bridges are managed by the charity at no cost to the public and the lack of wider understanding of the other charitable activities is restr(cting the reach and impact of work to promote the objects. The Court is committed to openness and transparency about its activities and improving awareness and understanding so a specialist external communications consultant has been appointed to review activity and make recornmendations for a new Communicatitsn Strategy.
ROCHESTER BRIDGE TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 Prin IRI in ies The Court is committed to sound risk management as part of its strategy to secure the Trust's long- term ability to meet its objectives and deliver maximum public benefit,. preserve and enhance its assets. and ensure the safety of the public, its staff and contrattors. A Risk Management Policy and detailed Risk Register is in place, which wa5 fully reviewed by the Court in May 2023. An interim review in October 2023 identified some additional temporary risks, which were added to the register, with actions identified to mitigate and manage them. The Court identifies the most significant risks in the Major Risk Matrix. A major risk is defined by the trustees as an event with a high-scoring combination of medium to high likelihood and a moderate to catastrophic impact on the Trust. Active management of risks has resulted in most risks falling outside the definition of a Major Risk, other than the potential for significant flooding from the River Medway or Strood to affect operation of the Bridges, particularly on the west bank of the river, and some temporary risks awaiting more information from struttural inspertions and relating to the reorganisation of estate management activity. The Court is concemed about the risk of flooding to its bridge assets on the Strood bank, notably the elertrical system. The Trust Is encouraglng Medway Councll and other bodies to seek satisfartory solutions to these issues and in the meantlme has taken steps to install locallsed protection to the bridges including protettion to the electrical distribution board. River level monitors are in place and an emergency flood response protocol is rnobilised by the Term Maintenance Contractor as required. Projects planned for the bridges in future years will mitigate the risks further. These projects will include improvements to the access gantry to the Island Pier of the Old Bridge. a review of the behaviour of Spring water on the Esplanade and possible further works,. n0VatIon of the Georgian balustrade on the Esplanade, Rochester and repairs to the Rochester Serviee Well. Arrangements are in place for handling emergencies and disaster recovery. An emergency plan is in place for the bridges. Insurance cover is obtained for most residual risks and the cover types and levels are reviewed annually. All three bridges are insured for their full replacement value. CoMphenSlve property-owners Insurance is in place. FINANCIAL REVIEW Within the General Fund, income exceeded expenditure by £0.65 million. However, there were a number of projetts and activities funded frorn reserves and, overall, expenditure exceeded income in the year by £0.35 million. There was a net realised and unrealised gain on investment property of £9.74 million, and realised and unrealised gains on financial Investments totalling £3.20 million, giving a net total investment galn of £12.94 million. Takbng account of the artuanal gain and the Strict10n on the surplus on the pension fund and the revaluation of fbxed assets, the net movement in funds for the year was net income of £12.52 million. Principal Source of Funds The Trust Is 5elf-funded and generates income from its own assets, primarily from property rents, realised gains on property sales, dividends, bank interest and realised gains on financial investment disposals. It does not receive any PLJblic ftjnding from local or national government. It does not charge tolls on the bridges Dr fees for its other services (apart from room hire and lerturer fees) and does not raise funds from the public or grant-making bodies. In line with the Charities {Protettion and Social Investment) Act 2016, the trustees have considered implications for the Trust. As the Trust does not actively fundraise or solicit donations from the general public, the trustees do not consider it necessary to have a formal fundraising policy in place. No donations were received in the year nor any complaints in thi5 regard.
ROCHESTER BRIDGE TRusr ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 Reserve5 Policy The Trust needs to ensure that it has sufFicient reserves to rneet the cost of maJor maintenance of the bridges at the appropriate tlme and, in the very long-term, to ftjnd replacement of each bridge where this is appropriate at no cost to the public. To determine whether reserves are sufficient to cover the cost of maintaining and replaclng the bridges in perpetLJity, a formal Artuarial Opinion is taken at appropriate inteNals to test assumptions and monitor financial performance. The latest actuarial valuation was based on financial data to 31 March 2021. The Court is satisfied that it does have sufficient resources in the long tem) to deliver its responsibilities and, subjert to various assumptions being delivered, will have a small surplus whlch will be distributed for public benefit through educational and other charitable activities and grants. The total held in the Bridges ReseNe Fund and River Medway Fund at 31 March 2024 was £128.2 milllon, an increase of 10.5% in the year. All the reserve funds are unrestricted. The Court is satisfied that the Trust is viable to continue as a going concern. 'Free reserves, disclosure has been considered but is not deemed to be applicable to the Trust. All Investment properties and financial investment assets are designated for the future use of the Trust. Investment Policy The Investment Policy sets out the approach to managing the investment assets to ensure the charitable obletts will be achieved over the very long temi. When investlng charitable funds, the Trust seeks to meet its charitsble duty by achieving the best total return, whether In the form of income or capital, to generate sufficient funds to meet its annual running costs, including routine works,. and to maintain and increase reserve funds for ftjture major capital maintenance and replacement worf<s. The Investment Policy ensures that investments are made in an appropriate range of financial and property asset classes to ensure diversification and a spread of risk,. that returns are maximised within reasonable and prudent levels of risk. and that administrative and management costs are controlled. The target for the overall balance of investment assets is 60010 property.'40010 finandal investments and cash. The majorSty of the financial portfolio is In relatlvely higher rlsk asset types i.e. equltles, with the remainder in cash and other financial investments. The investment property portfolio focuses largely on lower risk, long-term holdings, with a high proportion of agricultural land. The property investment portfolio provides a good level of fixed income and thefOre the Court does not consider it neSSary or appropriate to include financial Investments with a similar profile in the finanaal portfolio. Financial investments exposed to the UK real-estate market are also avoided because of the relatively high exposure that the direct property holdings represent. During the year, the Court reviewed the newly published Charity Commission Guidance CC14 Investing Charity Money in the context of the Trust's primary purpose to maintain Rochester Brldge. The guiding objettive of the Investment Policy was confirmed i.e. to seek the best financial return that can be achieved, within the full range of available financial investment options in line with the level of risk the Court has decided is acceptsble to the Trust and the requirements for diversification as set out in the Policy. The Court also confirmed its policy of engagement rather than disinvestment and its instructions to the Investment Manager to use the shareholder vote or other opportunities to influence practice at companies in which the Trust is invested. A commitment was made to consider in due course the option of positively investing in companies which promote the Trust's charitable objectives (the Tertiary Objett Policy in particular) and the option of settlng up a Soclal Investment Fund. particularly for research and/or to incentivise tenants to reduce their carbon footprint. In the annual review of Investment Policy in Ortober 2023 some other adjustments were made to the Investment Policy, which took effert from l January 2024. including the rernoval of the general Alternatives Asset Class and its replacement with Commodities (Gold). a prohibition on cryptocurrency investrnents,. and narrowing the allowable tactical range for cash holdings to encourage prompt re- investment. The Court also decided to equallse the target balance between UK and overseas equities to 47.5Wo in each (from 65%.'36.50/0 previously) to recognise the proportion of UK Listed company income which comes fmm overseas, the relatively small proportion that the UK market psents in the SE AII World Index and the lack of exposure of the UK market to important sectors including technology.
ROCHESTER BRIDGE TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 As a control on Over-exposu to foreign currency, a Constraint to limit non-sterling assets to 500/0 of the portfolio wa5 added. Following a workshop held with the Investment Manager, senior officers and the Ctsurt, Infrastructu Funds were included in the investment strategy as an allowable asset class, with a Strategic Guideline of 50/0. Investment Performan The long-temi investment objective is to meet or exceed the return assumptions in the Artuarial Valuation to ensure that the provision of Rochester Bridge can be funded in perpetuity, and to lease surplus value from the investments to fund grants and other charitable projects to promote the Third Objett. The total value of financial and property investments at 31 March 2024 totalled £125.2 mlllion, a 9.8% increase compared with 2023. The growth was partly as a result of more stable financial investment markets and improved bank interest, but prirnarily as a result of unrealised gains on investment property arising from the grant of planning permission and rising rents for 50rne holdings. The Court is pleased that the value of the long-term reseeS has remained strong, even though slgnificant sums have been invested in the bridges and Bridge Chapel and Chamber in the past few years. The cost of construttion work continues to rise ahead of inflation and it is essential that the Trust accumulates a level of reserves which is compatible with its long-term liability to maintain Rochester Bridge in perpetuity. Total income for the year increased by 8.4% compared to the prevlous year to £3.70 million from £3.42 million. Financial Investment Portfolio It was a more settled year for the financial investment portfolio with strong income, realised and unrealised gains and less drastic fluctuations in response to national and geopolitical events and the after-effetts of the Covid-19 pandemlc than in previous years. The income target from the financial investments over the two-year budget period 2023-25 was set at £2.079 million for the year. £1.014 million was achieved in 2023124, an increase of 7.5WD on the prior year, and close to 500/u of the 0-year target, and the trustees are content that performance is satisfattory. There has been a significant increase in bank interest received in the year, although this represents a relatively small part of total income. The overall perfomiance of the financial investment portfolio managed by Rathbones Investment Management Ltd was measured against a bespoke composite index and a minimum target of RPl+3Yo growth per annum to 3 1 December 2023, and CPl+40/D thereafter. CPl+4Wo for the year was 7.2010 and the Composite Index was 14.3¥0. The financial portfolio total retum was I1.50h for the year. It was notable that the Investment Manager exceeded by 1.20/D the average performance of its peers as measUd by the ARC Charity Equity Risk Total Return index. Given the nature of its liabilities, the Tmst takes a long-term view of Investments and keeps the performance of the Investment Manager under close review. A formal vieW of the Investment Manager's performance was carried out in 2024 with the assistance of an independent Investment Advisor and, in May 2024, the Court made the decision to continue Rathbones. appointment for a further period, subjert to a review every three years. Pmperty Investment Portfolio The long-term total return target for the property investment portfollo is 6.250/0 gross (i.e. before any deduction for investment expenses). A revaluation of the property portfolio was carried out by qualified valuers from Savills plc and the total value was £86. 121 million at 31 March 2024, an increase in value of 10.40k since 31 March 2023. On a like-for-like basls and excluding major development properties, the underlying increase in estate value was 2.4%.
ROCHESTER BRIDGE TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 Two disposals were made during the year, all$ing a total reeeipt of £1.5 million and a gain on Book Value of £0.347 million. These We land at Abbey Farm, Leeds and redundant farm buildings at Yew Tree Farm, Farnley Tyas, the latter being the subject of a development option for which the increased value upon the grant of planning pemiission of the otherwise redundant site had already been included in the Book Value. Achieving the required financial returns fmm the investment property estste relles on attlve management of properties as w¥ell as any underlying rises in rents and land and property value5 due to the market. Attivltles in Ilne with the Estate Management Strategy have continued, including steps to maximise rental returns, reduce liabilities and in-hand land, and ensure properties are in good order. Action was taken to improve fencing* signage and to grant licences to deal with encroachment and unauthori5ed use of the Trust's land in several rural locations. Several larger rent reviews and re- lettings were concluded, increasing the rent mll by approximately 3.70/0 per annum during the year. Major repairs were completed to the grainstore roof at Hall Farm, Springthorpe and floor at Bruce's Castle Farm, Conington, and the replacement of the farmhouse roof at Bruce's Castle Farm. Work to small sewage treatment plants to achieve compliance with the General Binding Rules was largely completed, with one property outstanding at 3 1 March. Two houses on the West Yorkshire Estate underwent full refurbishment and have been re-let. A new Reinstatement Cost Assessment was carried out using an improved methodology and more thorough approach than previously. The re-assessment, together wlth slgnificant increases in the cost of building works in the UK generally, resulted in a significant Increase in the amount of building insurance ctsver required. Having Identified the condition of small bridges on the estates as a risk, an audit of all such structures was carried out and inspectitsns of many of them have been undertaken by the in-house brldge team. Fomial inspections by accredited bridge inspectors were included in the scope of work for a new structural inspertion contract expected to be in place by the end of 2024. The implementation of the strategy to bring rn0 aspects of estate management in-house progressed with the creation of a new post of Property Manager (South and Commer¢iall- Oversight and co-ordination of asbestos management has been brought in-house. The longstanding contrart with Savills plc for the management of the Southern property estates was ended. Following tendering exerc15es, Bidwells LLP wa5 appointed to manage the rural portfolio, and Countrywide Residential Lettings Ltd was appointed to manage the residential portfolio. Savills continues to manage the Central and North estates. A tendering exercise was also completed for the appointment of a new supplier for cartographic services. The property investment portfolio is held for the purpose of raising funds and in line with it5 fiduciary duties, the Court has sought opportunities to develop appropriate land within the estates. Planning permlssion was achleved by option-holclers for three significant developments during the year. In Farnley Tyas, West Yorkshire, permission was granted for the development of vacant buildings at Yew Tree Farm into 17 residential units. Sale of the land was concluded under the terms of an option agreement already in place when the Trust acquired the property. In Kent, planning permission was granted on appeal for two residential developments.. at Westmoor Farm, Rainham 166 units) and Pond Farm, Newington { 135 units). Negotiations on price are in hand with the option holder for the former, while the latter has been put to the open market in accordance with the promotion agreement. Elsewhere, major development prtsposals by others could have a significant impact. Representations are being made regarding major proposals for solar energy developments in Lincolnshire and the Lower Thames Crossing in Kent to ensure that the best interests of the charity are protected. Expenditure on properties was lower than last year by £0.24 million 113Wol to El.59 million. Maintenance and repair expenditure artually increased by £0. 13 million 1370/0) and insurance costs increased by over 50Q/o, but these costs were offset by redurtions in professional fee5 and other staffing costs and the release of a provision relating to the refurbishment of the Bridge Chapel and Chamber. io
ROCHESTER BRIDGE TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 Pension At 31 March 2024 there was a penslon surplus of £1.319 mlllion {2023'. £1.021 million). However, any pension surplus arising at the year-end is not recognised in the balance sheet as the surplus does not meet the Financial Reporting Standard (FR51021 criteria for recognition as an asset. A fvll actuarial pension valuation was carried out at 31 March 2022 and updated to 31 March 2024 by a qualified independent artuary. Tax The Trust incurs Value Added Tax on all of its expenditure, where applicable. Input tax incurred on bridge or other charltable expenditure cannot be reclaimed as these are deemed to be non-business attivities because the Trust does not charge for its public services. Only a proportion of the VAT on expenditure on the property estate can be recovered, i.e. where taxable supplies are being made. The amount of VAT that can be recovered on support costs is restritted accordingly. Therefore, irrecoverable VAT represents a very large cost, particularty in years with substantial investment in bridge maintenance. In 2023124, the cost of irrecoverable VAT was EO.35 million. STRucfuRE, GOVERNANCE AND MANAGEMENT structure The Warden5 and Assistants of Rochester Bridge in the County of Kent is a charitable trust originally estsblished as an incorporated body by letters patent granted by Klng Richard Il in 1399 and confsrmed by a ststute of Henry V11422). The Trust is now regulated by the following Acts and instruments.. the Rochester Bridge Art 1965,. the main Scheme of the Charity Commissioners of l June 1999- Schemes of the Charity Commissioners of 20 June 2006 and 30 December 2013. Statutory Instnjment 2000 No. 3098, The Charitles ffhe Rochester Bridge Trust) Order- and the Medway Tunnel Act 1990. The 1999 Charity Commission Scheme has been amended by resolutions dated 31 July 2006, 29 October 2007, 19 November 2012 (two amendments), 30 December 2D13, 1 September 2014, I l January 2018, 12 March 2018, 19 February 2019, 1 March 2021, 23 May 2022 and 20 May 2024. Governance The board of trustees is referred to as the Court of Wardens and Assistants of Rochester Bridge {"the Court. The Court has thirteen members (trustees). six nominated by local authorities, known as "Nominated Members~ and seven co-opted, known as"Appointed Members- Every two years the Court eletts from its membership a Senior Warden and a Junior Warden, usually to hold office for a period of two years in each role. Appointed Members are appointed by the Court for a term of five years, with new appointees serving maximum of three terms. The Court attempts to secure that collertively the members of the Court possess an appropriate spread of expertise having regard to the objects of the charity, the nature of its property and its activities. Following a Skills Audit, the thirteenth trustee position {and seventh Appointed Member position} was added to the Court from l June 2023 to provide an opportunity to introduce a new member with particular skills and experience in science education In schools, and improve the diversity of Court membership. PLJblic advertisement and competitive interviews were undertaken, resulting in the appointment of Dr Helen Pascoe, a science teacher and school senior leadership team member. The Court's longest-serving member, Paul Harrlott, retired from the Court in May 2023, having served for 43 years, since 1999 as an Appointed Member. Mr Harriott was the eighth longest-serving trustee in the history of the Trust and the Court expressed its gratitude for his commitment and faithful service. The remaining year of Mr Harriott's term was filled by the appointment of John Famier, a civil engineer.
ROCHESTER BRIDGE TRUST ANNVAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 Nominated Members are appointed by Medway Council {the), Kent County Council (two) an Maidstone Borough Council (one). Each appointment is for a period of four years, with new appointees serving a maximum of three terms. Nominated Members are not necessarily members of the appointing body and do not present the views of that body. All new trustees re1ve Indurtion training from the Senior Management Team and are offed support from the Senior Warden. A tsvo-year Trustee Information and Training Programme is in place including briefing events on current issues, property estate visits and bridge tours. Members of the Court have access to the onlbne Members, Informatlon Portsl. No trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in notes 10 and 20 to the accounts. In March 2024, elections were held for three, five-year Appointed Member positions which were due to fall vacant at 31 May 2024. Russell Cooper, Russell Race and John Farmer were elerted. Mr Cooper and Mr Race have both served more than nine years as members of the Court, but the new temi of appointment will be their last following the introduction of a maximum allowable total term of service in 2023. Mr Cooper is the current Junior Warden and may be appointed as the next Senior Warden {Court willing) from I lune 2025 to 31 May 2027. Given his current position and the value of continuity of leadership of the Trust, the Court considered it appropriate to re-Appoint him for a further term. Mr Race is a very longstanding mernber of the Resources Committee with a professional background as a stockbroker. Mr Cooper and Mr Race will not be eligible for reappointment at the end of their current terms. The Court holds the Ordinary meetings each year. Additionally, Special Court Meetings may be called at any time by a Warden or by any two Members of the Court. The appointment of Members,. setting budgets,. and matters of policy and strategy are reserved to the Court. Members are required to make declaration of their interests and loyalties which are recorded In the Register of Members, Interests made available at every meeting. There are five Committee5 that meet a minimurn of twice a year to di5CUS5 key areas of the Trus¥s attivities and oversee delivery and budget monitoring within their area of responsibility. Each committee has detailed Terms of Referen and a Scheme of Delegated Authority in place which is kept under continual review. The Committees are the Bridge,. Resources. Property. Education, Grants & Archives- and Wardens, Committees. The Committees oversee delivery, management of budgets and other matters delegated to them by the Court. Executive functions and operational matters within policy and budget a delegated to senior officers in accordance with the Scheme of Delegation and Scheme of Financial Delegation approved by the Court. Equality, Divet5ity and Inclusion An Equality, Diversity and Inclusion IEDI) Policy is in place and the Court has identified a wish to further improve the diversity of Court Membership in future trustee recruitment. A Board Effectiveness Review, completed in late 2023, identified EDI as an area of focus for the Court in the coming year. Management The Executive Leadership Team comprises three experienced officers. The Bridge Clerk (Chief Executive) is Sue Threader, a Chartered Engineer and Fellow of the Institution of Civil Engineers with extensive public and private sector experience. The Chief Finance Officer, Paula Puxty, is a Chartered Accountant with both corporate and charity experience. The Chief Estates Officer, Tim Cathcart, is Chartered Surveyor and Registered Valuer with extensive commercial property management experience. The Court considers the Court of Wardens and Assistants and the ExecLJtive Leadership Team as the key management personnel in charge of dirertion, control and operation of the Trust. At the end of the financial year, the Senior Management Team was strengthened by recruitment to the new post of Director of Charitable Projects, who will be responsible for delivery of the artivities under the third charitable objert including education, exhibitions and grants. Recognising the primary objective of the charity, the Bridge Manager was promoted tts an enhanced role as Director of Bridges and also joins the Senior Management Team. The Executive Leadership Team are also members of the Senior Management Team. 12
ROCHESTER BRIDGE TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 other staff support the operatlDns and administration of the Trust and the provision of bridge engineeringi education and estate management services. During the year there was an average of 16 staff in the establishment (13 full-time equivalents). The Tnjst does not generally engage volunteers. As required a number of freelance and casual paid staff are engaged on short-term appointments to work on projects and events. A Staff Remuneration Policy is in place. Staff salaries, including for senior officers, are regularly benchmarked against data for similar-sized charities in the South East and against profession benchmarks as relevant. Salaries are reviewed annually and approved by trustees. Subject to affordability, an annual "Cost of Uvlng" pay award is based on the Consumer Prices Index (including housing) for eligible staff. The gender pay gap shows the differen between the average (mean) earnings of men and women. It is expressed as a percentage of men's eamings. The mean gender pay gap for the Senior Management Team comprising two women and two rnen, was -38010 {i.e. overall male senior managers have lower pay than female senior managers). The Trust is a Living Wage Employer, meaning that the Tnjst has committed to paying all staff and casual workers the real Living Wage as a minimum. The Court makes use of professional advisors on the management and control of Its assets and a number of its other activities, althoLJgh artivities are increasingly being moved in-house in the interests of quality of delivery, management of risk, efficiencyi Cost and better accountsbility for perforrnan. FUTURE PLANS Rochester Bridge Detailed designs and contract documents are in preparation ft>r improved access to the Island Pier- preventing 1055 of material in the Rochester SeNice Well. and repalnting the upper sections of the bowstring trusses arnong many other minor repair and maintenance tasks. Two six-year contracts wlll be awarded for structural inspections of all bridges and suNeys of road and footway condition. A feasibility study is underway to investigate options for strengthening the downstream cantilever of the New Brfdge and widening the footway to enable segregation beleen pedestrians and cyclists. Discu55ions continue with statutory undertakers to improve maintenance and management of plant carried by the servi 8ridge. Attention will continue to be paid to reducing Carbon emissions in bridge management. Thls will include the design for installation of electric power points at variou5 IDCations on the bridges, powered by renewable energy. Education The focus will be on ensuring that education artlvitles are avallable to Snterested young people and families outside the school setting as well as in schools. Use of the"Let's Build a Bridgel" cable-stayed bridge kit will be maximised. A residential summer school for bridge and highway engineenng for young people aged 14-15 will be delivered in association with the Smallpe1 Trust and the University of Kingston. The engineering and agricultural scholarship programmes will be reviewed and adjusted as needed to maximise their impact in encouraging yoijng people to study and undertake careers in those areas. Attention will continue to be given to providing high-quality experfences and supporting the alumni group of scholars. Work experience placements will be offered. 13
ROCHESTER BRIDGE TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 other Charitable Projects Planning will take place for a major event in Rochester Cathedral in Summer 2025 to display the restored Shorts Floatplane, restored with a grant from the Trust, alongside engineering education artivities for young people. Other projects a in development to restore memorials to past Wardens and create a new exhlbltion about the lives of some of the most significant. Grants A budget of £1 mlllion has been allocated for 2023-25 for distributlon for grants and other charttsble projects under the Tertlary objert pollcy. Revised policy documents and grant programmes will be launched, together with a new online grant application prOS5. Carbon Net Zero Carbon status for bridge management and in-house activities will be sustained. A new carbon sequestration plantation will be planted to offset construction carbon for the Yew Tree Farm development by other5, and also ernissions relating to management of the West YOhlre Estate. Estate Management Further steps will be taken to improve management of the estate by bringing MO activities in-house. Artive management of the estate in line with the Estate Strategy is expected to increase the rent roll ftjrther and release additional capital to fund the primary purpose and for distnbution under the third objert. Supplementary heating will be installed in the Bridge Chapel and the environmental control systems in the Strongroom will be modified. The project to convert l Esplanade and Senlac House into the Trust's permanent office home, to be known as Sir William Cubitt House, will continue provided planning and Listed Building Consent applications are approved. Pmgress by external developers on the Lower Thame5 Crossing proposal and solar developments on the Springthorpe Estate will be dosely monitored and the Trust's interests protected. 14
ROCHESTER BRIDGE TRUST ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2024 STATEMENT OF RESPONSIBILITIES OF THE MEMBERS OF THE COURT OF WARDENS AND ASSISTANTS OF ROCHESTER BRIDGE The Member5 of the Court of Wardens and Assistants of Rochester Bridge are responsible for preparing the Annual Report and the flnancial statements in accordance with applicable law and United Kingdom Accounting Standards (Unbted Kingdom Generally Accepted Accounting Practice). Law applicable to charities in England and Wales requi5 the Members of the Court (who are the trustees) to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming resour5 and application of resource5 of the charity for that period. In preparing these financlal ststements, the Members of the Court are required to= select suitable accounting policies and then apply them consistently,. observe the methods and principles in the Charities SORP (FRS1021,' make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subjert to any material departures disclosed and explained in the f5nancial statements,. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the trust will continue in business. The Members of the Court are responsible for keeping proper accounting records that disclose with reasonable accuracy the financial position of the charity and enable thern to ensure that the financial statements comply with the Charities Act 2011, applicable accounting regulation5 and the prc*visions of the Trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the preventlon and detertion of fraud and other irregularities. The Members of the Court fulfil their responsibilitie5 explained above by appointing an appropriately qualified and experienced Chief Finance Officer who undertakes to maintain the Trust'5 financial records on a day to day basis. The Members of the Court review these records at least twi a year. The Members of the Court are responsible for the maintenance and integrity of the charity and flnanctal Infomiation included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other 3urisdictions. On behalf of the Members of the Court of Wardens and Assistants of Rochester Brfdge Derek Butler Senior Warden 14 October 2024 15
ROCHESTER BRIDGE TRUST INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE COURT OF WARDENS AND ASSISTANTS OF ROCME5TER BRIDGE FOR THE YEAR ENDED 31 MARCH 2024 Oplnlon We have audited the financial statements of Rochester Bridge Trust for the year ended 31 March 2024 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including 51gnificant accounting policies. The financial reporting framework that has been applied in thelr pparatIOn is applicable law and United Kingdom Accounting Standards, including Financlal Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom Generally Accepte(f Accgunting Practice). In our opinion the flnancial statements.. give a true and fair view of the state of the charity's affalrs as at 31 March 2024 and of its incoming resources and application of resources for the year then ended,. have been propedy prepared in accordance with United Kingdom Generally Accepted Accounting Prartice. and have been prepared in accordance with the requirements of the Charities Act 2011. Basis for opinion We conducted our audit In accordance with International Standards on ALJditing (UK) (ISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the ffinancial 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 responsibilitles in accordance with these requ1mentS. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basls 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 approprfate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going Concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibillties 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 inforrnation. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report theOn. 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. 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 course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misststements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there Is a material mi55tatement of this other information; we are reqUId to report that fact. We have nothing to report in this regard. Matters on whlch we are required to report by exception We have nothing to report in respect of the following matters in relats'on to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion.. the infom)ation given in the Trustees, Annual Report is inconsistent in any material respect with the financial statements; Dr 16
ROCHESTER BRIDGE TRLisr INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE COURT OF WARDENS AND ASSISTANTS OF ROCHESTER BRIDGE FOR THE YEAR ENDED 31 MARCH 2024 the charity has not kept sufficient accounting cOrdS,. or the financial statements are not in agreement with the accounting cordS and retums. or we have not received all the information and explanations we require for our audlt. Responsibilities of trustees As explained more fully in the Statement of Responsibilities of the Members of the Court set OLJt on page 15, the trustees are responsible for the preparation of the financial statements and for being satisfied that they 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 assesslng the charity's ability to continue as a going concern, disclosing* as applicable, matters related to going concern and using the going concem 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. Auditors. responslbllltles for the audlt of the financial statements We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under that Act. Our objectives are to obtsin reasonable assurance about whether the f1nancial statements a5 a whole are free from material rnisstatement, whether due to fraud or error, and to issue an auditors. report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or errDr 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 misstatement5 in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to whlch these are capable of detetting irregularities, including fraud are detailed below. Identifying and assessing risks related to irregularities.. We assessed the susceptibility of the charity's financial statements to material misstatement and how fraud might occur, including through discussions with the informed management, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charity by discussions with informed management and updating our understanding of the sertor in whlch the charity operates. Laws and regulations of direct Significan in the context of the charity include the Charities Act 2011, the Charities (Accounts an(J Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales. Audlt response to risks identified: We considered the extent of compliance with these laws and gUlationS as part of our auélt procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charity's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatement5 arising. We discussed the charity's policies and procedures for compliance with laws and regulations with members of management responsible for compliance. During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulatlons or knowledge of any actual, suspected or alleged fraud. 17
ROCHESTER BRIDGE TRUST INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE COURT OF WARDENS AND ASSISTANTS OF ROCHESTER BRIDGE FOR THE YEAR ENDED 31 MARCH 2024 We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional sceptlclsm and thus the capaclty to identify non-compliance with laws and regulations and fraud. There are inherent limitations in the audit procedures described above and the further removed non- compliance with laws and regulations is from the events and transartions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not deterting a mater(al mi5Statement due to fraud is higher than the risk of not deterting one resulting from error, as fraud may involve deliberate concealment byi ftsr example, forgery or intentional misrepresentatlDns, or through collusion. A further description of our responslbllities is available on the Financial Reporting Council's website at- www.frc.or -uk auditors This description forms part of our auditor's report. Use ol our report This report is rnade 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 trustee5 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 trustees as a body, for our audit work, ftsr this report, or for the opinions we have formed. Saffery LLP Chartered Accountants Statutory Auditors 71 Queen Vittoria Street London EC4V 4BE Date.. i] Io Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. 18
ROCHESTER BRIDGE TRUST STATEMENT OF FINANCIAL AcfIviTfES FOR THE YEAR ENDED 31 MARCH 2024 General Fund River Bridges Medway Reserve Fund Fund Designated Deslgnated 2024 Total 2023 Total Note Xnvestments Rents receivable Dividends receivable Bank and other interest 2,550,842 1,014,204 138,224 2.550,842 1,014,204 138,224 2,458,913 943,327 14,168 Total income 3,703,270 3,703,270 3.416,408 Ex ndi Ralslng funds Investment management Expenditure on propertie5 196,781 1,296,793 196,781 1,592,358 190,681 1,833,483 295,565 Charitable Actlvlties Maintenance of bridges Grants payable Other charitable activities 1,266,466 16,289 275,524 426,381 34,509 244,543 1,692,847 50,798 520,067 1,571,601 82,250 443,291 1,558,279 705,433 2,263,712 2,097,142 Total expenditure 3,051,853 1,000,998 4,052,851 4.121,306 Net income/{expenditure) before investments gains/(losses) Unrealised gain/(loss) on financial Investment assets Realised gain/llossl on financial investment assets Unrealised investment property gain Realised gain/(loss} on investment property sales 651,417 (1,000,998) (349,581) {704,898) 13b 2,733,145 2,733, 145 (572,3871 13b 467,513 467,513 (751,914) 13a 9,391,002 9,391,002 2,061,039 13a 346,945 346,945 {14,680) Net incomal(expendlture) 651,417 11,937,607 12,589,024 17,160 Transfers between Fund5 18 1328,648) 328,648 other recognised gains/{losses} Actuarial gain on pension fund li Restriction of surplus on pension fund Unrealised loss on fixed assets 69,000 69,000 1,598,000 (118,0001 1118,0001 <1,201,000) 12a/ 12b 120,000) {20,0001 (73,000} Net rnovement In funds for the year 322,769 12,197,255 12,520,024 341,160 Total funds brought forward £3,423,117 £33,164 £115,998,052 £119,454,333 £119, 113,173 Total funds carrled forward 18 £3,745,886 £33, 164 £128, 195,307 £131,974,357 £119,454,333 All transactions are derived from continuing artivities. All recognised gains and losses are included In the statement of financial artivities. The notes on pages 22 - 38 form part of these financial statements. 19
ROCHESTER BRIDGE TRUST BALANCE SHEET AT 31 MARCH 2024 2024 2023 Note Flxed assets Tangible assets Heritage assets Investment properties Investments 12{a) 121b) 13(a) 131b) 2,291,213 813,576 86,121,154 39,050,895 2,225,091 812,080 77,989,152 36,018,281 128,276,838 117.044,604 Current assets Debtors Short temi deposits Cash at bank and in hantl 14 545,639 2,500,406 1,810,716 413,092 1,913,663 1,541,886 4,856,761 3,868,641 Creditors: amounts falling due within one year 15 (1,159,242) (1,458,912) Net current assets 3,697,519 2,409,729 Net assets excludin9 penslon Ilablllty 131,974,357 119,454,333 Pension liability li Net assets including penslon Ilablllty £131,974,357 £119,454,333 Funds Bridges Reserve Fund {Designated) General Fund River Medway Fund {Designated) 18,19 18,19 18,19 128,195,307 3,745,886 33,164 115,998,052 3,423, 117 33,164 Total fund balances £ 131,974,357 £119,454,333 The financial statement5 were approved and authorised for issue by the Court of Wardens and Assistant5 on 14 October 2024 and were slgned below on its behalf by.. Derek Butler Senior Warden The notes on pages 22 to 38 form part of these financial statements. 20
ROCHESTER BRIDGE TRUST STATEME14T OF CASHFLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Note Cash flows from operating activities (4,508,420) 13,551,641) Cash flows from investlng activities Dividends and interest Purchase of property¢ plant and equipment Purchase of heritage assets Proceeds from sale of heritage assets Purchase of investments Proceeds from sale of investments 3,703,270 18,77D) {1,4961 3,416,408 136,188) (270) {6,978,871) 7,665,476 {3, 181,6401 4,926,714 Net ush provided by tnvesting activities 4,379,609 5,125,024 Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 1128,811) 5,580,328 1,573,383 4.006,945 Cash and cash equlvalents at the end of the year £5,451,517 £5,580,328 Notes to the Cash Flow Statement 2024 2023 Reconciliation of Net Income to Net Cash Flow from Operating Activities Net Income Gains on investment5 Depreciation charges Loss on the sale of fixedlheritage assets (Increasel/decrease in debtors (Decrease)/increase in creditors Pension costs Dividends, interest and rents from investments 12,589,024 {12,938,6051 25,300 348 1132,547} {299,670} (49,000) (3,703,270) 17,160 {722,0581 26,377 120,825 248,463 174,000 13,416,408) Net cash used in operating activities (4,508,420) (£3,551,641) 2024 2023 Analysis of Cash and Cash Equivalents Cash at bank and in hand Short term deposits Cash held by investment managers 1,810,716 2,500,406 1,140,395 1,541,886 1,9L3,663 2,124,779 £5,451,517 £5,580,328 Analysis of Change5 in Net Debt At l April 2023 É Ca5hflow5 At 31 March 2024 É Cash Cash held by investment managers Cash equivalents 1,541,886 2,124,779 1,913,663 268,830 (984,384) 586,743 1,810,716 1,140,395 2,500,406 Total É5,580,328 1£128,8111 E5,451,517 21
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (al Basls ol preparation The financial statements have been prepared under the historical cost convention, as modified by the revaluation of fixed assets, and in accordance with the 'Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland. (FRS 102) second edition and the Financial Reporting Standard applicable In the Unlted Kbngdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The accounts have been prepared to give a 'true and fairf 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 ha5 involved following Accounting and Reporting by Charities preparing thelr accounts in actordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 rather than the Accounting and Reporting by Charities.. Statement of Recommended Prattice effective from l April 2005 which has since been withdrawn. The Trust meets the definition of a public benefit entity under FRS 102. The Court is satisfied that the Trust ha5 sufficient reserves to continue as a going concem for the foreseeable future. (b) Fund accounting Designated funds comprise unrestrirted funds that have been set aside by the Court for particular purposes. The aim and use of the designated funds are set out in note 18. The General Fund is an UnStrIed fund which is available to use at the discretion of the Court in furtherance of the general objertives of the Trust and which has not been designated for other purposes. The General Fund includes income arising from the General Fund's short-term cash investments which tan be used by the Court to finance the Trust's expenditu. Additional funding is provided by way of transfer from the Bridge ReseNe Fund as applicable. The penslon reserve fomis part of the General Fund. {¢) Income and expenditure recognition Incorne Rental income is accounted for in the period to which the rent relates. Dividend income is accounted for in the statement of financial attivltSes Sn the perlod In which the harity is entitled to receipt. Bank and other interest are ineluded in the statement of financial activities when received. Expendlture Expenditure is included on an accruals basis. Costs of raising funds comprise the costs directly attributable to managing the investment portfolio and raising income. Grants payable are charged in the year when the offer Is committed. Grants offered subjett to conditions which have not been met at the year-end date are noted as a commitment but not accrued as expenditure. Expenditu on properties is expenditure in relation to the maintaining of the investment and operational properties. The maintenance of Bridges is detailed in note 5. Support Costs comprlse costs for the running of the charity and are apportioned between charitable activities and costs of raisSng funds on the basis of time spent by staff. Governance Costs are not treated as an artivity of the Trust for the purpose of allOtioN of Support Costs but are reallocated across the main activities of the charity in the same way as Support Costs. Governance Costs consist of those costs which late to the overall running of the Trust, including meeting statutory and regulatory requirements. 22
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024 (d) Tangible fixed assets (including Herltage Assets) Freehold and long leasehold land and buildings are included in the financial statements at the Court's best estimate of their open market value. Further details are shown in note 12. DepCIatIOn Ss not charged on these buildings occupied by the Trust which is not in accordance with the Charities, SORP or FR5102. How¥ever, in the opinion of the Court, the buildings have a life in excess of 50 years and consequently any depreciation charge and Sultant accumulated depreciation, would be immaterial. An item is deemed to be a Flxed Asset when its purchase value (ex. VAT) is equal to or eXedS £250 and where its estimated useftjl life is more than one year. The following depreciation terms are applied to write down the value of an asset over its useful life.. motor vehicles17 years)- and fumiture, fixtures & exhibition assets, office equipment, plant & machinery (5 years). The three bridges, (the tr40 road bridges and the service bridge) that are known colleciively as Rochester Bridge are included in Freehold Land and Buildings at a norninal cost of £1. All maintenance and improvement costs are written off as incurred. The Court believes that the bridges should continue to be included within the asset base at £1 as their Continued use by the public is fundamental tts the aims and objectives of the Trust. The Trust maintains archives and historical records in support of its objertives. The Court considers that owing to the irreplaceable nature of the arehives and historical records, conventional valuation approaches lack sufficient reliability. As a result, no value is reported for these assets in the Trust's Balance Sheet. Further details are shown in note 12. A collertion of fine art, furniture, silverware and other historic artefacts is owned by the Trust and reported in the Balance Sheet as Heritage Assets. Disposals from this collection are not anticipated apart from in exceptional circumstances. Occasional acquisitions are made where these add to the body of knowledge of the history of the bricsges and the Trust or for exhibition purposes. The Assets are preserved to the best of the Trust's ability, using profe55ional conservators where appropriate. The collettion is privately held by the Trust, however public access is permitted during periDdic open days and exhibitions. As described in note 12 a full valuation of the heritage assets is regularly Caled out. In the inteNenlng years the heritage assets are reviewed annually for impairment. An irnpairment charye is made if a significant impairment is found to have occurred. {e) Investments Quoted investments a included In the financial statements at market value at the balance Sheet date. Property investments are included at fair value at the balance sheet date. A "desktop" revaluation of the property investment portfolio was carried out by qualified valuers from Savills plc at 31 March 2024 (the last full -Red Book" revaluation was carried out at 31 March 20211- Realised and unrealised gains and losses on revaluation and disposals occurring in the year are reported in the statement of financial attivities. (Q Pension scheme The Trust contributes to the Kent County Council defined benefit scheme. This scheme 15 a multi- employer scheme. The charity's share of surplus or deficit of the scheme is recognised on the balance sheet. Changes in the assets and liabilities of the scheme in the year are disclosed and allocated as follows: Changes relating to current or past service costs and gains and losses on settlements and curtailments, and pensOn finance costs arising from changes in the net of the interest costs and expected return on assets, are allocated to the relevant activity heading based on staff costs of employees within the scheme. Pension finance income arising from similar changes is recognised as an incoming resource. Actuarial gains and losses are recognised below net income. 23
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS {continued) FOR THE YEAR ENDED 31 MARCH 2024 The assets, liabilities and movements in the surplus or deficit of the scheme are calculated by qualif1ed independent actuaries as an update to the latest full actuarial valuation. Details of the scheme assets and liabilities and major assumptlons are shown in riote I l. Any pension surplus arising at the year-end is not recognised in the balance sheet as the surplus does not meet the FRS102 criteria for recognition as an asset. See note 11 for further details. (g) Deferred income Deferred income comprises property rental income demanded in advance which relates to the following year. (h) Flnancial Instruments Basic financial instruments are initially recogni5ed at transattion value and subsequently measured at amortised cost with the exception of investments which are held at fair value. Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and In hand Is defined as all cash held in instant access bank accounts and used as working capitsl. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions. Financial instruments are detabled note 23. (i) 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. Accrued income comprises property rental income which relates to the year but not yet demanded. (i) Cash at bank and in hand Cash at bank and cash in hand includes cash and short term highly liquid investments. (k) 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 discount5 due. (l) Employee benefits Short-term benefits Short-term benefits including holiday pay are recognised as an expense in the period in which the service is received. No holiday pay accrual is required in line with FR5102 as the Trust's holiday year is co-terminus with the financial year and any holiday carried forward has to be used within six months and cannot be paid. Employee termination benefits Termination benefits are accounted for on an accrual basis and In Ilne with FRS 102. (rn) Critical estimates and judgements In the application of the charity's accounting policies, the trustees are required to make judgernents, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other 50urce5. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimate5 and underlying assumptions are reviewed on an ongoing basis. Revisions to accoLJnting estimates are recognised in the penod in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future period5. 24
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS {contlnued) FOR THE YEAR ENDED 31 MARCH 2024 The Court believes that the bridges should continue to be included within the asset base at a nominal value of £1 as detailed in accounting policy note Idl. SLJPPOrt costs {including governance costs) are allocated across the activities of the Trust, based on a judgement of resources spent on each activity during the year. A"desklop- revaluation of the property investment portfolio vyas carried out by qualified valuers from Savills plc at 31 March 2024. The major assumptions made by the qualified independent attuary in relation to the pension scheme are provided in note 11. NET MOVEMENT IN FUNDS Net movement in funds are stated after charges for audit fees of £17,900 (2023.. £17,550). INVESTMENT MANAGEMENT FEES 2024 2023 Investment management fees Direct staffing cost (note 81 Support costs {note 81 129,775 28,946 38,060 122,917 29,753 38,011 £196,781 £190,681 The investment management fee Is related to the value of the portfolio. EXPENDITURE ON PROPERTIES 2024 2023 Professional and other fees Maintenance and repairs Operational Property Ground rents Compliance costs Vacant property cost5 Bad debts 428,685 474,435 (23,193} 17,387 49,271 22,380 2,874 87,365 117,770 179,440 235,944 447,909 345,608 275,126 21,802 40,998 19,054 L6,437 56,592 149,793 202,048 258, 116 Insurance VAT Irrecoverable Direct stsfffing costs (note 8) Support costs (note 8) £1,592,358 £1,833,483 Operational property expenditure relates to the refurbishment of operational buildings. A provision relating to the final account of the Bridge Chamber refurbishment was released during the year. 25
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024 MAIf4TENANCE OF BRIDGES 2024 2023 Professional fees Maintenance and repairs Bridge Management and Operations One-off Projects Recharged costs Insurance 189.487 539,452 39,284 10,018 (6,191) 63,107 151,957 304,867 400,866 173,290 494,663 25,444 87,843 (4,5521 44,752 157,457 260,243 332,461 VAT irrecoverable Direct staffing costs (note 8) Support costs (note 8) 1,692,847 £1,571,601 Recharged costs relate to Setvice Bridge costs Charged to statutory undertakers in accordance with the 1965 Rochester Bridge Act. GRANTS PAYABLE General Fund Rlver Medway Fund 2024 Total 2023 Grants 29,983 4,526 7,037 9,252 29,983 4,526 7,037 9,252 56,351 7,936 7,887 10,076 Other grant costs Direct staffing costs (note 81 Support costs (note 8) £50,798 £50,798 £82,250 A grant of £10,000 was awarded in the year to St Nicolas Church, Thanington towards the cost of repairs to the 19th Century lychgate. There were no other grants of more than £10,000. Unspent grant balances of £7,422 were written back in the year. No grants were awarded in the year from the River Medway Fund 12023.. one grant, £500). staff continued to support ongoing grant projects and distribute small grants for engineerlng education to youth groups and schools. The total number of grants awarded in 2024 was 22 (2023.. 19) in addltbon to scholarships awarded under the Rochester Bridge Trust's Arkwright Engineering Scholarship and Spence Agricultural Scholarship schemes. All grants awarded during the current and preceding year were in the furtherance of the Trust's third object (the promotion of such other charitable purposes as may from time to time be determined in the United Kingdom and primarily the County of Kenti. 26
ROCHESTER BRIDGE TRusr NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024 OTHER CHARITABLE ACTIVITIES 2024 2023 Education & Scholarship Artivities Archive Projects & Exhibitions Other Charitable Activities Direct staffing costs (note 81 Support costs {note 8) 82,466 50,436 29,913 154,328 202,924 15,805 36,997 29,430 158,533 202,526 £520,067 £443,291 SUPPORT AND GOVERNANCE COSTS 2024 Flnanclal Bridges Propertles Invest- ments Other Grants Charitable Activities Total Dirert Wages and salaries 304,867 179,440 28,946 7,037 154,328 674,618 £304,867 £179,440 £28,946 £7,037 £154,328 £674,618 Support Wages and salaries Insurance Office and adrninistration 149,499 35,509 215,858 87,993 20,900 127,051 14, 194 3,371 20,495 3,450 820 75,678 17,975 109,271 330,814 78,575 477,657 4,982 £400,866 £235,944 £38,060 £9,252 £202,924 £887,046 Support costs are allocated to activities based on an estimate of the time spent by staff on each activity. 2023 Flnanclal Brldges Propertles Invest- rnent5 Other Grants Charitable Artivlties Total Dirert Wages and salaries 260,243 202,048 29,753 7,887 158,533 658,464 £260,243 £202,048 £29,753 £7,887 £158,533 £658,464 Support Wages and Salae5 Lnsurance Office and administration 143,370 29,840 159,251 111,310 23,166 123,640 16,392 3,412 18,207 4,345 904 87,337 18, 178 97,011 362,754 75,500 402,936 4,827 £332,461 £258,116 £38,011 £10,076 £202,526 £84 1, 190 Included in the above 5UPPOrt Costs are the following: 27
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024 GOVERNANCE COSTS 2024 2023 Salanes and wages Meeting costs Auditors. remuneration in respect of the audit Trustee Training Charity Legal Advice FRS102 Pension Report 96,660 4,846 17,900 1,484 1,255 828 102,836 3,566 17,550 753 £122,973 £124,705 Governan Costs are reallocated across the maln actbvitles of the charity in the same way as Support Costs. EMOLUMENTS OF EMPLOYEES 2024 2023 Salarles and wages Employer national insurance Superannuation Net interest and service costs of defined beneffit pension scheme 818,549 90,812 145,071 {49,0001 663, 175 74,423 109,620 174,000 £1,005,432 £1,021,218 The increase in salaries and wages reflerts an Increase in staff resources plus the normal effects of pay awards and cost of living increases. 2024 2023 No. Average number of employees (headcount) 16 15 No. No. Average number of employees {full time equivalents) 13 12 The Trust considers the Court of Wardens and Assistants and the Executive Leadership Team (Bridge Clerk, Chief Flnance Officer and Chief Estates Officer) as comprisin9 the key management personnel of the Trust. The total employment benefits, including ernployer pension contributions, of the key management personnel were £360,796 (2023.. É311,320)- The number of employees of the Trust earning over E60,000'. 2024 2023 No. £120,000-E130,000 £110,000-£120,000 £ioo,ooo-£iio,000 £90,000-£100,000 E80,000-É90,000 £70,000-£80,000 £60,000-£70,000 28
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS (contlnued) FOR THE YEAR ENDED 31 MARCH 2024 10. EMOLUMENTS OF THE COURT No member of the Court received any remuneration from the Trust. Expenses paid {e.g. travel and subsistence) for trustees attending meetings, training and events on behalf of the Trust during the year amounted to £8,311 for thirteen trustees (2023: £3,866 for twelve trustees). 11. PENSION COST The Trust is a participant in the Kent County Council defined benefit multi-employer pension scheme. The scheme remains open to new entrants and Is compliant with Auto-Enrolment rules. A full actuarial valuation was carried out at 31 March 2022 and updated to 31 March 2024 by qualified independent actuary. Employer contribution5 payable for the year ended 3 1 March 2025 are projetted to be £153,000. The pension surplus of £1,319,000 as at 31 March 2024 has not been recognised In the balance sheet as it does not meet the FRS102 criteria for recognition as an asset and as such has been written off to reserves. Changes In the present value of the defined beneflt obligatlon are as follows: 2024 2023 Opening deffined benefit obligation Current service cost Contributions by scheme participants Interest Cost Change in financial assumptions Change In demographic assumptiC•ns Experience gain on deffined benefit obligation Benefits paid net of transfers in 2,267,000 153,000 67,000 i i 1,000 183,0001 131,0001 7,000 31,000 3,295,000 276,000 53,000 88,000 (1,927,000) {85,000) 410,000 L57,000 Closing defined beneflt obll9atlon £2,522,000 £2,267,000 Changes In the falr value of plan assets are a5 follows: 2024 2023 Openlng falr value of plan assets Interest on assets RetLJrn on assets less InteSt Administration expenses Contributions by employer Contributions by scheme pèrticipants Estimated benefits paid net of transfers in Other actuarial gains1(losses) 3,468,000 172,000 (38,0001 13,0001 144,000 67,000 31,000 3,072,000 84,000 142,0001 (2,0001 108,000 53,000 157,000 38,000 Closlng falr value of plan assets £3,841,000 É3.468,000 29
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024 The amounts recognised in the balance sheet are as follows: 2024 2023 Present value of funded obligations Fair value of plan asset5 {bid value} (2,522,000) 3,841,000 (2,267,000) 3,468,000 Net assevlliabilityl £1,319,000 £1,201,000 Restriction on pension surplus 1£1.319.000) 1£1,201,000} Net asseV(Ilabillty) recognised in the balance sheet The amounts recognised in the Statement of Flnanclal Activities are: 2024 2023 Service cost Net interest on the defin Ilabllity/{asset} Administration expenses 153,000 (61,0001 3,000 276,000 4,000 2,000 Total £95,000 £282,000 Remeasurement of the net assets/ (defined Ilablllty) 2024 2023 RetLJrn on Fund assets in excess of interest Other actuarial gains/{losse5) on assets Change in financial a55UmPtions Change in demographic assumptions Experience gain on defined benefit obligation (38,000) {42,000) 38,000 1,927,000 85,000 (410,000) 83,000 31,000 17,000) Total galn In the year £69,000 £1,598,000 The major categories of plan assets as a percentage of total plan assets are as follows: 2024 580/0 7QJo 14¢k 9010 20 5010 50/0 2023 640/0 1¢ Equities Gilts other Bonds Property Cash Absolute Return Fund Infrastructure iOO/o 20/0 7% The assets In the scheme were: Value at 31 March 2024 Value at 31 March 2023 Equities Gilts other bonds Property Cash Absolute Return Fund Infrastructure 2,235,000 28L,000 553,000 345,000 61,000 194,000 172,000 2,214,000 19,000 455,000 346,000 62,000 254,000 118,000 Total market value of assets £3,841,000 £3,468,000 30
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024 The return for the year to 31 March 2024 is calculated to be 3.76% (2023-. 1.30Vol across all asset classes. The major assumptions of the actuary were: At 31 March 2024 2.900/0 3.90Q/o 4.95% At 31 March 2023 2.90010 Pension increases {CPI) Salary increases Discount rate Assumed life expectancies at age 65 are.. Retiring today Males Females At 31 March 2024 At 31 March 2023 20.8 23.3 21.1 23.5 Assumed life expertancies at age 65 are: Retirtng in 20 years Males Females At 31 March 2024 At 31 March 2023 22.0 24.7 22.3 25.0 12. TANGIBLE FIXED ASSETS (a) Assets recognlsed Sn the balance sheet Freehold Land and buildings Offlce Furnlture, Plant and Equipment Fixtures and Machinery Exhibition Assets Total Valuation/cost At l April 2023 Additions Revaluation Reallocations Disposals 2,159,001 63,644 8,425 67,993 345 16,650 2,307,288 8,770 {20,000) 103,000 {12,0611 120,000) 103,000 (12,061) At 31 March 2024 2,242.001 60.008 68,338 16,650 2,386,997 Depreciation At l April 2023 Depreciation charge for the year Disposals 39,646 10,393 (11,713) 30,063 11,577 12,488 3.330 82,197 25,300 111,713) At 31 March 2024 38,326 41,640 15,818 95,784 Net Book Value At 31 March 2024 £2,242,001 £21,682 £26,698 £832 £2,291,213 At l April 2023 £2, 159,001 £23,998 £37,930 £4,162 £2,225,091 The net book value of tangible fixed assets represents fixed assets used for general management and administration of the Trust. Included in freehold land and buil(Jings are the bridges at a nominal value of £1. 31
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024 The freehold land and buildings were valued at 31 March 2024 as part of a "desktop" revaluation of the Trust's property portfolio carried out by qualified valuers from Savblls plc and as a result the value decreased by £20,00012023'. decreased by £73,000). During the year the Trust rea11ocated 13.8 acres of land with a value of £103,000 from the investment property portfolio to operational property, as this is required for the planting of new woodland for carbon offsetting. (b) Heritage assets recognised in the balance sheét The Trust owns a portfolio of heritage assets: artwork, furniture and silverware, which is reported in the Balance Sheet at the most recent insurance valuation, carried out by Tim Ritchie and Associates in 2022. Gain5 and losse5 on revaluation are recognised in the Statement of Financial Activities. The Trust intends to maintain its collection of the above mentioned heritage assets. These items are deemed to have Indeterminate lives and the Court does not therefore consider it appropriate to charge depreciation. Disposal of any item from this would happen only in exceptional circumstances. Summary analysls of herltage asset transactions 2024 2023 2022 2021 2020 Balance brought fornard Purchases Disposals Revaluation 812,080 1,496 811,810 270 586,971 16,519 594,013 558 (7.600) 592,908 1,105 208,320 Balance carried forward £813,576 £812,080 £811,810 É586,971 £594,013 (c) Heritage assets not recognised In the balance sheet Following the construction of the medieval stone bridge during the last decade of the 14th century Sir Robert Knolles and Slr John de Cobham obtained royal patents for the incorporation of the Wardens and Commonalty of Rochester Bridge. Since that time the records of Rochester Bridge, beginning with the 14th-century wardens, account rolls and estate records, have been rnaintained at the Bridge Chamber. Reeords arising from the current business of the Rochester Bridge Trust continue to be added to the archive. Researchers may consult the Rochester Bridge archives by appointment with the Archives & Records Manager. 13. INVESTMENTS 2024 2023 (a) Investment properties Valuation at l April Acquisitions Disposals at net book value Reallocation to operational property Revaluation 77,989,152 76,451,113 (I, L56,000) (103,0001 9,391.002 (ioo,000) (423,000) 2,061,039 At 31 March £86,121,154 £77,989,152 32
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024 A'desktop" revaluation of the property portfolio was carried out by qualified valuers from Savills plc at 31 March 2024. An uplift in value of £9.4 million was recorded, with significant increase5 in value at some properties as a result of planning consent being achieved at development Sltes. It is not possible to give the historical cost of investment properties as some were acquired over 600 years ago. b) Quoted investments 2024 2023 Market value of investments at l April Additions Disposals at net book value Unrealised gain/(10ssl on revaluation 33,893,502 6,978,870 15,695,017) 2,733,145 36,877,557 3,181,640 {5,593,308) 1572,387) Market value of investments at 31 March Cash held by investment managers 37,910,500 1, 140,395 33,893,502 2,124,779 E39,050,895 £36.018,281 Historic cost at 31 March (excluding cash) £29,412,123 £27,142,127 Realised gainlllossl Dn disposals 467,513 (£751,914) 2024 2023 The portfolio is made up as follows.. UK Equities (including Private Equity} Overseas Equities Infrastructure Funds Indirect Property Funds Commoditie5 Cash 15,762,096 19,843,245 1,437,050 77,229 790,880 1,140,395 19,210,867 13,889,914 77,281 715,440 2,124,779 £39,050,895 £36,018,281 14. DEBTORS: Amounts falllng due within one year 2024 2023 Trade debtors including rents receivable Prepayments Accrued income Other debtors 96,322 193,928 145,398 109,991 65,230 124,551 135,349 87,962 £545,639 £413,092 33
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS (contlnued) FOR THE YEAR ENDED 31 MARCH 2024 15. CREDITORS: Amounts falling due within one year 2024 2023 Trade and other creditors Accruals Deferred income (note 161 Grants allocated but unpaid {note 17) other taxes and social security Pension contributions payable 210,084 493,544 324,805 37,760 74,145 18,904 240,333 767,787 293,347 72,483 70,770 14, 192 £1,159,242 £1,458,912 16. DEFERRED INCOME alance at l April 2023 Amount released to property income Amounts deferred in the year £293,347 1293,347) 324,805 Balance at 3 1 March 2024 £324,805 17. GRANTS ALLOCATED BUT UNPAID RECONCILIATION Balance at l Aprll 2023 Paid in the year Grants expired or no longer required Awarded in the year £72,483 164,705) (7,4221 37,404 Balance at 31 March 2024 Falling due within one year £37,760 18. FUNDS River Medwav Fund Deslgnated Bridges Reservo Fund Deslgnated 2024 General Fund Total Balance at l Aprll 2023 Net expenditure before investments gains and losses Unrealised gain on investments Realised gain on investments Unrealised property gain Realised gain on property sales Transfers between Reserve Funds Artuarial gain on pension fund Restriction of surplus on pension fund Unrealised loss on tangible assets 3.423,117 651,417 33,164 115,998,052 119,454,333 (1,000,998) (349,581) 2,733,145 2,733,145 467,513 467,513 9,391,002 9,391,002 346,945 346,945 328,648 69,000 (118,0001 (20,0001 1328,6481 69,000 {118,000) (20,000) Balance at 31 March 2024 £3,745,886 £33,164 £128, 195,307 £131,974,357 34
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS (contlnued) FOR THE YEAR ENDED 31 MARCH 2024 River Medway Fund Deslgnated Bridges Reserve Fund Deslgnated 2023 General Fund Total Balance at l April 2022 Net expenditure before Investments gains and losses Unrealised loss on investments Realised loss on investments Unrealised property gain Realised losses on property sales Transfers between Reserve Funds Attuarial gain on pension fund Restriction of surplus on pension fund Unreollsed loss on tangible assets 3,838,297 266,594 33,664 (500) 115,241,212 119,113,173 (970,992) (704,898) (572,387) 1572,387) (751,914) (751,914) 2,061,039 2,061,039 114,680} (14,680) 681,774 1,598,000 1,598,000 11,201,000) (1,201,000) {73,0001 (73,000) {681,774) Balance at 31 March 2023 £3,423,117 £33,164 £115,998.052 £119,454,333 DESIGNATED FUNDS There are two designated funds as follows- Bridges Reserve Fund The Bridges Reserve Fund provides for the repair, improvement, buIlding or replacement of the bridges and related assets and investment management costs (including maintenance of investment property}. Any surplus in the Fund may be used to fund grants and other charitable projects under the third charitable object. The Fund and all the assets of the Charity are managed to deliver sufficient income to provide funds to the General Fund as quired to meet its obligations. A transfer is made each year to rebalance the General Fund to equal the closing value of the Tnjst's operational assets and liabilities. Ftsr the year ended 31 March 2024 an amount of £328,648 {2023: £681,774) was transferred from the General Fund to the Bridges ReseNe Fund. River Medway Fund The Trust maintains the River Medway Fund with a view to distributing the remaining funds from a previous dissolved charity, the Medway Heritage Centre Trust IMHcf} in line with the objectives agreed at the time of the dissolution of the MHCT. 19. ANALYSIS OF NET ASSETS BY FUND River Medway Fund De5rgnated Bridges Reserve Fund Designated 2024 General Fund Total Tangible fixed assets Heritage assets Investment properties Investments Current assets Current liabilities 2,291,213 813,576 2,291,213 813,576 86,121,154 39,050,895 4,856,761 11, 159,242} 86,121,154 39,050,895 3,359,513 {336,2551 1,459,974 {818,8771 37,274 (4,110) Total net assets at 31 March 2024 £3,745,886 £33,164 £128,195,307 £131,974,357 35
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2024 River Medway Fund l>esl9nated Bridges Reserve Fund Designated 2023 General Fund Total Tangible fixed assets Heritage assets Investment properties Investments Current assets Current Ilabllities 2,225,091 812,080 2,225,091 812,080 77,989,152 36,018,281 3,868,641 (1,458,912) 77,989, 152 36,018,281 2,283,966 1293,347) 1,547,401 (1, 161,455) 37,274 (4,110) Total net assets at 31 March 2023 £3,423,117 £33,164 £115,998,052 E119,454,333 20. RELATED PARTIES Two 12023.. two) of the Wardens and Assistants who seNed during the year are members of or nominated by Kent County Council. During the year ended 3 1 March 2024, the Trust paid £145,071 12023.. £109,620) in employer penslon contributions to the Kent County Council Pension Scheme, a Local Govemment Pension Scheme adminiSted by Kent County Council. The balance of pension contributions outstanding as at 31 March 2024 was £18,904 (2023- £ 14, 1931. The Trust also paid £864 12023: £711) during the year for other services in relation to the pension fund. Three (2023: the} of the Wardens and Assistants who served during the year are members of, or nominated by Medway Council. One {2023.' one} of the Wardens and Assistants who served during the year is a member of Rochester Cathedral Council and two 12022: two) are a member of the Rochester Cathedral Trust. Durlng the year ended 31 March 2024, Rochester Cathedral charged the Trust £21,194 12023- £20,575), primarily relating to the rent and service5 ftsr the administrative office, St Andrew's House. One of the Wardens and Assistants is Chairman of the Kent Wildfowling and Conservation Association. During the year ended 31 March 2024, the Trust received fees in respect of Sporting Leases of £23,356 {2023'. £20,700) from the Kent Wildfowling and Conservation Assoclation. 21. FINANCIAL COMMITMENTS Lease Commitments 2024 2023 Lease payments due under non-cancellable operating leases falling due.. within one year within two to five years 32,335 25,030 31,121 14,954 Total lease payments under nOn-CanlIable operating leases £57,365 E46,075 The total commitment includes a lease for offfice accommodation {St Andrew's House) and parking, ground rent on a long leasehold investment property and offfice equipment operating lease payments. 36
ROCHESTER BREDGE TRUST NOTES TO THE FINANCIAL STATEMENTS (contlnued) FOR THE YEAR ENDED 31 MARCH 2024 22. OPERATING LEASE RECEIPTS 2024 2023 Minimum lease receipts under non-cancellable operating leases to be recelved: not later than one year later than one year and not later than five years later than five year5 2,010,330 4,243,617 3,691,460 1,830,252 3,373,330 4,375,578 Total lease receipts under non-cancellable operating leases £9.945,407 £9,579,160 23. FINANCIAL INSTRUMENTS 2024 2023 Financial assets measured at fair value Investment properties nvestments 86,121,154 39,050,475 77,989,152 36,018,281 37
ROCHESTER BRIDGE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued} FOR THE YEAR ENDED 31 MARCH 2024 24. STATEMENT OF FINANCIAL ACTIVITIES - PRIOR YEAR COMPARATIVE General Fund Rlver Brldges Medway Reserve Fund Fund Designated Designated 2023 Total Note om Investments Rents receivable Dividends receivable Bank and other interest 2,458,913 943,327 14,168 2,458,913 943,327 14,168 Total income 3,416,408 3,416,408 Ex en Itu Raising funds Investment management Expenditure on properties 190,681 1,363,250 190,681 1,833,483 470,233 Charitable Activities Maintenance of bridges Grants payable Other charitable activities 1,223,884 17,964 354,035 347,717 63,786 89,256 1,571,601 82,250 443,291 500 1,595,883 500 500,759 2,097,142 Total expenditure 3,149,814 500 970,992 4,121,306 Net income/(expendlture) before investments gains/{losses) Unrealised loss on financial investment assets Realised loss on financial investment assets Unrealised investment prtsperty gain 13a Realised loss on Investment property sales 13a 266,594 1500) (970,992) (704,898) 13b 1572,387) (572,387) 13b 1751,9141 2,061,039 {14,680) (751,9141 2,061,039 114,6801 Net Income/(expendlture) 266,594 15001 (248,934) 17,160 Transfers between Funds 18 (681,774) 681,774 other recognised gains/(losses) Actuarial gain on pension fund Restrittion on surplus on pension fund Unreali5ed loss on fixed assets 1,598,000 1,598,000 (1,201,0001 11,201,000) {73,0001 173,0001 12a/ 12b Net movement in funds for the year Total funds brought forward 1415,180) £3,838,297 {500) £33,664 £115,241,212 £119, 113,173 756,840 341,160 Total funds carried forward 18 £3,423,117 £33,164 £115,998,052 £119,454,333 38